Aviation Industry

 History
Industry
Market Share
Growth
 Market Size
 Challenges For
Aviation Industry 5%
31%

 Reasons For Boom In 5%

Aviation Industry 30%
9%
20%
 Scope
 Growth Prospects of Jet & JL KF & Red AI & Indian
Indian Aviation Sector Indigo SpiceJet Other

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

Brand Comparison between JA & KF 1/10

Market Leaders
Jet Airways Kingfisher

 Market Leaders
 Most favored
 37% Growth in 2006-07
 16% growth in 2006-07
 Acquired 26% + 20%
 Acquired Air Sahara in shares of Air Deccan
2006
 No.2 with 30% (including
 No.1 with 31% (including 17% of Red) MS in
13.5% of JetLite) MS in Domestic Market
Domestic Market
 Awarded the ‘Best New
 Won Double Honour Travel Airline Of the Year’ award
Trade Gazette award in in (2005) by CAPA.
Oct 2007.

Brand Comparison between JA & KF 2/10

Marketing Strategy
Jet Airways Kingfisher

Segmen-  3* Airline  5* Airline

tation  Focus on business & leisure  Focus on high end Leisure

 SEC A, SEC B+ in the age  SEC A, SEC B+ in the age

Target group of 25-55 group of 22-45
Audience  Aims to target business  Aims to target lifestyle &
clients youth segment

Positioning  “The Joy of Flying”  “Fly the Good Times”

Brand  Shahrukh Khan  Deepika Padukone

Ambassador

Brand Comparison between JA & KF 3/10

Strategy
Jet Airways
 Maintain market leadership in the
domestic market
 Consistently provide a superior
service to our passengers
 Develop two equally strong pillars:
domestic and international operations
 Seamless connectivity spanning
domestic 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 distribution
cost (encourage on-line bookings)
 Re-negotiation of agreements with
various service providers–Investing in
infrastructure
Brand Comparison between JA & KF
Kingfisher Airways
 Be a leader in the domestic
market
 Capture International market
 Provide well develop
connectivity to its customers
 Improving cargo revenue
potential — domestic and
international
 Provide best in the business
service in both No-frill as well
as Premium
 Target the growing middle
class segment i.e., net savvy,
young, upwardly mobile and
has a propensity to spend
4/10
According to Survey
Preference
Top
Consumer
between
Most
of the
Preferred
Mind
Choice
Jet Airways
Brand
Parameter
Airlines
Recall
and Kingfisher

88%
34% 79%

3%71%
29%
3% 15%
20% 28%
55%
4%
43% 42%
7% 17% 39%
15%
12%
28%
80%

5%

Jet Airways Kingfisher Airline Airindia

Price Service Flight Promo Loyalty Comfort with Corporate-
Go Air
Kingfisher Airline Schedule
Jet Kingfisher
Airways Virgin Airline
Scheme
Airindia Programs
EmiratesEmirates
BrandAirline
Airways Tie-ups
Others
Airline Jet Airways
Pacific Airline Others

Brand Comparison between JA & KF 5/10

5 Force Model
Substitute
 Product & Technical development
 Alternative Price/Quality
 Market Distribution Changes
 Fashion and trends

BPS BPC
Industry Rivalry  Buyer choice
 Brand Reputation
 No and size of firm  No. of buyers
 Geographical coverage  Industries size & trends  Choice of cost
/Frequency
 Fixed vs. variable cost
 Product Service  Product/service
 Product and service ranges importance
 Relationship with  Differentiation & strategy  Volume & just in Time
customer schedule

NPE
 Entries case & barrier
 Geographical factors
Jet Airways  Incumbent Resistance
 Routes to market
Kingfisher
 New entrants strategy
Brand Comparison between JA & KF 6/10
 Jet Airways Kingfisher Airline
Opportunity
Strength Weakness
Threats Opportunity
Strength Weakness
Threats

Service Superior
Untapped
Developed
air Untapped air Yet to
standard not up
Train journey is Product and
cargo
Network
market cargo market developed
to the mark
quite Service

Scope
Goodin comfortable
Poor people and Better Handling Does not
economical Preferred brand
International
Knowledge mgmt. skill of of employees parallel to
(5 star) Existing
of
service
Sector chairman and staff Goyal’s
Operators
Strong
Expanding Deccan
UnderDeal – Experience
competitors
Carcass of Air
in
Loyal
tourism
customer new
penetrated
segment flying rather
international
Sahara
industry domestic
and cheap
market then Loyal
service
Infrastructure
Experience to Expanding
Regional Weak brand High Recall and Erraticissue
hours for
survive in this tourism
connectivity promotion Preferred brand employee
sector Infrastructure industry

Fastest
Raised
growing
on issue to
Inability Well capitalized To much
Fleet size
industries
strength ofinown
the Raise Money for airline, prepare dependence on
expansion
balance
world
sheet the last 2 Years to take loss group firm UB

Brand Comparison between JA & KF 7/10

No-Frill Airlines
JetLite
 Second most experienced group
 Jet Airways market share
 Made Jet Airways as a biggest airline Decent facilities

Kingfisher RED
 India’s First LCC
 Targetting Upper Middle Class Segment
 Increased Kingfishers Flying Experience
 Increasing Fleet Capacity to sustain load
 Delays and Breakdowns
 Bad Service
Brand Comparison between JA & KF 8/10
Alliance of the Mammoth
 On 13th October 2008, Kingfisher chairman Vijay
Mallya and his Jet Airways counterpart Naresh
Goyal 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.

Brand Comparison between JA & KF 9/10

Recommendations
 Both the airlines can think about lowering the
prices of their tickets even though their target
market is the 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
Brand Comparison between JA & KF 10/10