Jet and Kingfisher

8/9/2019 Jet and Kingfisher

1/10

Brand Comparison between JA & KF 1/10

Industry Growth

Aviation Industry

History

Market Size

Challenges ForAviation Industry

Reasons For Boom InAviation Industry

Scope Growth Prospects of

Indian Aviation Sector

Source: www.DGCA.org and aai.aero.

30%

31%

5%

5%

9%20%

Jet & JL KF & Red AI & Indian

Indigo SpiceJet Other

Market Share


2/10

Brand Comparison between JA & KF

/10

Market eaders

Market eaders

16 growth in 006-07

Acquired Air Sahara in006

No.1 with 1 (including1 . of Jet ite) MS in

Domestic Market

Won Double Honour TravelTrade Gazette award in

ct 007.

Most favored

7 Growth in 006-07

Acquired 6 + 0shares of Air Deccan

No. with 0 (including17 of Red) MS inDomestic Market

Awarded the Best NewAirline f the Year awardin ( 00 ) by CAPA.

Jet Airways Kingfisher


3/10

Brand Comparison between JA & KF /10

Marketing Strategy

* Airline

Focus on business & leisure

* Airline

Focus on high end eisure

SEC A, SEC B+ in the agegroup of -

Aims to target businessclients

SEC A, SEC B+ in the agegroup of -4

Aims to target lifestyle &youth segment

Fly the Good Times

Segmen-tation

TargetAudience

Positioning

BrandAmbassador

Shahrukh Khan Deepika Padukone

Jet Airways Kingfisher

The Joy of Flying


4/10


Jet Airways

Maintain market leadership in thedomestic market

Consistently provide a superiorservice to our passengers

Develop two equally strong pillars:

domestic and internationaloperations

Seamless connectivity spanningdomestic and international routes

Improving cargo revenue potential domestic and international

Reduce unit cost of operations Focus on reducing operating costs

(specifically fuel)

Reduction in selling and distributioncost (encourage on-line bookings)

Re-negotiation of agreements withvarious service providersInvesting ininfrastructure

Be a leader in the domesticmarket

Capture International market

Provide well develop

connectivity to its customers Improving cargo revenue

potential domestic andinternational

Provide best in the businessservice in both No-frill as well

as Premium Target the growing middle

class segment i.e., net savvy,young, upwardly mobile andhas a propensity to spend

Kingfisher Airways

Strategy


5/10


According to Survey

88

7

71

4

4

rice Service FlightSchedule

romoScheme

oyalty rograms

Com ort withBrand

Corporate- ie-ups

Consumer Choice arameterop o the Mind Brand Recall

1

81

7

4

8

Jet Airways King isher Airline Airindia

o Air Virgin Airline mirates Airline

aci ic Airline Others

Most re erred Airlines

4

17

1

King isher Airline Jet Airways Airindia mirates Airways Others

re erence between Jet Airways and King isher

0

80

King isher Airline Jet Airways


6/10


Industry Rivalry

No and size of firm

Industries size & trends

Fixed vs. variable cost

Product and service ranges

Differentiation & strategy

BPS

Brand Reputation

Geographical coverage

Product Service

Relationship withcustomer

Force Model

NPE Entries case & barrier Geographical factors Incumbent Resistance Routes to market New entrants strategy

BPC Buyer choice

No. of buyers

Choice of cost/Frequency

Product/serviceimportance

olume & just in Timeschedule

Substitute Product & Technical development Alternative Price/Quality Market Distribution Changes Fashion and trends

Kingfisher

Jet Airways


7/10


Kingfisher AirlineJet Airways

DevelopedNetwork

GoodKnowledgeofSector

Loyal customer

Experience tosurvive in this

sector

Raised onstrength of ownbalance sheet

Strength

Poor peoplemgmt. skill of

chairman

Inability toRaise Money forthe last 2 Years

Servicestandard not up

to the mark

Carcass of AirSahara

Weak brandpromotion

Weakness

Yet todeveloped

Does notparallel to

Goyals

Experienceflying ratherthen Loyal

Erratic hours foremployee

To muchdependence ongroup firm UB

Weakness

SuperiorProduct andService

Better Handlingof employees

and staff

Deccan Deal new segment

and cheap

High Recall andPreferred brand

Well capitalizedairline, prepare

to take loss

Strength

Untapped aircargo market

Scope inInternational

service

Expandingtourismindustry

Regionalconnectivity

Fastest growingindustries in the

world

Opportunity

Strongcompetitors ininternational

service

Train journey isquite

comfortable andeconomical

Infrastructureissue

Threats

ExistingOperators

Infrastructureissue

Threats

Untapped aircargo market

Preferred brand(5 star)

Underpenetrated

domestic market

Expandingtourismindustry

Fleet sizeexpansion

Opportunity


8/10


Second most experienced group

Jet Airways market share

Made Jet Airways as a biggest airline Decent facilities

No-Frill Airlines

Indias First CC

Targetting Upper Middle Class Segment Increased Kingfishers Flying Experience

Increasing Fleet Capacity to sustain load

Delays and Breakdowns

Bad Service

Kingfisher RED

Jet ite


9/10


Alliance of the Mammoth

n 1 th ctober 008, Kingfisher chairman ijayMallya and his Jet Airways counterpart NareshGoyal announced their alliance in Mumbai (India).

The alliance has following terms:

Code-sharing on both domestic and international flights,

Joint fuel management to reduce expenses,

Common ground handling,

Joint utilisation of crew and

Sharing of similar frequent flier programmes.


10/10


Recommendations

Both the airlines can think about lowering the pricesof their tickets even though their target market isthe elite class

Concentrate more Domestic Market Can spend more on advertisements

Improve their services by providing live telecasts(of Sports, News etc.), internet services and high

end games Increase promotional schemes

Seating should be made more spacious.

Tie-Ups

Jet and Kingfisher

Documents

Transcript of Jet and Kingfisher