Industrial Project - Sushant Dabas 1 (1)

8/2/2019 Industrial Project - Sushant Dabas 1 (1)

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Bharati Vidyapeeth Institute of Management & Research

A

Project Report

On

STUDY ON MARKETING STRATEGIES OF KINGFISHER AIRLINES

Submitted In Partial Fulfillment Of

Requirement for the Award of Degree

Bachelor of Business Administration

(BBA)

Batch: 2010-2013

Submitted By Under the Guidance

SUSHANT DABAS MRS SHIKHA GANDHI

Bharati Vidyapeeth Institute of Management & Research (BVIMR),

New Delhi

An ISO 9001:2008 Certified Institute

NAAC Re-Accredited Grade A University

Ranked in Top 50 B-schools in India By Business India

Recipient of B-school leadership award From Star News
http://www.google.co.in/imgres?q=bharati+vidyapeeth+institute+of+management+and+research&um=1&hl=en&sa=N&rlz=1R2SKPB_enIN417&biw=1093&bih=359&tbm=isch&tbnid=ebR-ASTpqZmLxM:&imgrefurl=http://updates.highereducationinindia.com/2010/bharati-vidyapeeth-deemed-university-5067.php&docid=2_gXIc6mr5Gs7M&imgurl=http://updates.highereducationinindia.com/news_img/bharati-vidyapeeth-deemed-university.jpg&w=200&h=200&ei=j0c9T6CfFYynrAetk-DUBw&zoom=1


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STUDENT UNDERTAKING

This is to certify that I SUSHANT DABAS had completed the Project titled

MARKETING STRATEGIES OF KINGFISHER AIRLINES under the guidance of Mrs

SHIKHA GANDHI in the partial fulfillment of the requirement for the award of degree of

BBA from Bharati Vidyapeeth Deemed University Institute of Management & Research,

New Delhi. This is an original piece of work and I had neither copied nor submitted it

earlier elsewhere.

Student Name and Signature

SUSHANT DABAS

Course BBA 4TH

SEMESTER

DATED : 3rd

APRIL 2012


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CERTIFICATE

This is to certify that the project titled MARKETING STRATEGIES OF KINGFISHER

AIRLINES is an academic work done by SUSHANT DABAS submitted in the partial

fulfillment of the requirement for the award of the Degree of BBA from Bharati Vidyapeeth

Deemed University Institute of Management & Research, New Delhi under my guidance and

direction. To the best of my knowledge and belief the data and information presented by

him/her in the project has not been submitted earlier.

Name and signature of Faculty Guide

MRS SHIKHA GANDHI

Designation

ASSISTANT PROFESSOR(BVIMR)


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ACKNOWLEDGEMENT

I acknowledge my deep gratitude and sincere thanks to many people with whom I have been

closely associated. First of all I would like to thank my INDUSTRIAL EXPOSURE GUIDE

MRS SHIKHA GANDHI without whose guidance and supervision the project would have

been only on the paper. Words cannot describe his kind cooperation and help at every stage

of project completion


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PREFACE

As a part of a curriculum of our three years bachelor degree program (BBA) from Bharati

Vidyapeeth University, we are required to prepare a project report on any company from

service sector in the month of February and March. I have made my project report in the

field of AVIATION INDUSTRY on KINGFISHER AIRLINES. The company has

provided me project report on current status of KINGFISHER AIRLINES. To access

information, I have gone through various sites and department.

The report highlights the image of the KINGFISHER AIRLINES as a best company in theeyes of the dealers, customer and competitors.


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INDEX

Chapter-1-Introduction

A. Overview of the service sector and its contribution in the economyB. Overview of the industry and its contribution in the service sector

Chapter-2- About the Company

A. Profile of the CompanyB. History of the CompanyC. Vision and mission statement of the CompanyD. Key competitors of the CompanyE. Organizational structure

Chapter-3- Marketing Strategies of the Company

A.Introduction about the marketing strategiesB. Four Ps of the Marketing

Chapter-4-Process of service delivery

A. Blueprint of the processB. Problems encountered in the processC. Suggestions for improvement of service delivery

Chapter-5-People

A. Recruitment processB. Training and DevelopmentC. Motivation

Chapter-6-Physical Evidence

Chapter-7-References


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CHAPTER 1 : INTRODUCTION

A.Service Industry: An OverviewSERVICE SECTOR

The service industry forms a backbone of social and economic development of a region. It hasemerged as the largest and fastest-growing sectors in the world economy, making highercontributions to the global output and employment. Its growth rate has been higher than that ofagriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy

both in terms of employment potential and contribution to national income. It covers a wide rangeof activities, such as trading, transportation and communication, financial, real estate and businessservices, as well as community, social and personal services. In India, services sector, as a whole,contributed as much as 68.6 per cent of the overall average growth in gross domestic product(GDP between the years 2002-03 and 2006-07.)

The most important services in the Indian economy has been health and education. They are oneof the largest and most challenging sectors and hold a key to the country's overall progress. Astrong and well-defined health care sector helps to build a healthy and productive workforce aswell as stabilise population.The 'Ministry of Health and Family Welfare' is responsible forimplementation of various programmes in the areas of health and family welfare, prevention and

control of major communicable diseases as well as promotion of traditional and indigenoussystems of medicines. Accordingly, it is carrying out measures like National health policy,implementing National Rural Health Mission (NRHM) in different States, conducting surveys andstudies, etc. While, education strongly influences improvement in health, hygiene anddemographic profile. The 'Ministry of Human resource Development' is involved in eradicatingilliteracy from the country. It is concerned with universalisation of elementary education,achieving full adult literacy, laying down of National Policy on Education, meeting needs ofsecondary and higher education for all, etc. India has achieved impressive demographic transitionowing to the decline of crude birth rate, crude death rate, total fertility rate and infant mortalityrate as well as gained high literacy rate in the country.

The era of economic liberalisation has ushered in a rapid change in the service industry. As aresult, over the years, India is witnessing a transition from agriculture-based economy to aknowledge-based economy. The knowledge economy creates, disseminates, and uses knowledgeto enhance its growth and development. One of the major functional pillars of this economy isInformation Technology (IT) and IT-enabled services (ITeS) industry. The 'Department ofInformation Technology' has been making continuous efforts to make India a front-runner in theage of Information revolution. IT continues to be a dominating sector in the overall growth of theIndian industry. A large number of Indian software companies have acquired international qualitycertification. Several policies have also been framed on the key issues of IT infrastructure,electronic governance as well as IT education.


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Another major and upcoming service industry has been media and entertainment. It is basically an

intellectual property-driven sector with small to large players spread throughout the country. Itcovers film, music, radio, broadcast, television and live entertainment. It plays a significant role increating people's awareness about national policies and programmes by providing information andeducation to all. The 'Ministry of Information and Broadcasting' is responsible for formulation andadministration of the rules, regulations and laws relating to media industry. Besides, retailing hasbeen one of the fastest growing service sector both in terms of turnover and employment. Manynational and global players have been investing in the retail segment and are making all efforts tofurther expand the sector. Out of the total retail outlets in the country, most of them are related tofood items.

However, to supplement the achievements and meet the shortfalls in all the sub-sectors of the

service industry, travel and tourism sector has to be developed in a sustainable manner. Being oneof the largest industry in terms of gross revenue and foreign exchange earnings, it stimulatesgrowth and expansion in other economic sectors like agriculture, horticulture, poultry, handicrafts,transportation, construction, etc. as well as gives momentum to growth of service exports. It is amajor contributor to the national integration process of the country as well as preserver of naturaland cultural environments. The 'Ministry of Tourism' has been undertaking several policymeasures and incentives so as to boost the sector such as the announcement of the NationalTourism Policy.

All this shows that services hold immense potential to accelerate the growth of an economy andpromote general well-being of the people. They offer innumerable business opportunities to the

investors. They have the capacity to generate substantial employment opportunities in theeconomy as well as increase its per capita income. Without them, Indian economy would not haveacquired a strong and dominating place on the world platform. Thus, service sector is consideredto be an integral part of the economy and includes various sub-sectors spread all across thecountry.

ECONOMY

An economy consists of the economic system of a country or other area; the labor, capital and landresources; and the manufacturing, trade,distribution, and consumption of goods and services ofthat area. An economy may also be described as a spatially limited and social network wheregoods and services are exchanged according to demand and supply between participants by barteror a medium of exchange with a credit or debit value accepted within the network.

A given economy is the end result of a process that involves its technological evolution, historyand social organization, as well as its geography, natural resource endowment, and ecology, asmain factors. These factors give context, content, and set the conditions and parameters in whichan economy functions.
http://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Otherhttp://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Land_(economics)http://en.wikipedia.org/wiki/Resourceshttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Distribution_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Goods_(economics)http://en.wikipedia.org/wiki/Social_networkhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Debithttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Technological_evolutionhttp://en.wikipedia.org/wiki/Historyhttp://en.wikipedia.org/wiki/Social_organizationhttp://en.wikipedia.org/wiki/Geographyhttp://en.wikipedia.org/wiki/Natural_resourcehttp://en.wikipedia.org/wiki/Ecologyhttp://en.wikipedia.org/wiki/Ecologyhttp://en.wikipedia.org/wiki/Natural_resourcehttp://en.wikipedia.org/wiki/Geographyhttp://en.wikipedia.org/wiki/Social_organizationhttp://en.wikipedia.org/wiki/Historyhttp://en.wikipedia.org/wiki/Technological_evolutionhttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Debithttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Social_networkhttp://en.wikipedia.org/wiki/Goods_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Distribution_(economics)http://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Resourceshttp://en.wikipedia.org/wiki/Land_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/Otherhttp://en.wikipedia.org/wiki/Economic_system


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A nations economy can be divided into various sectors to define the proportion of the population

engaged in the activity sector. This categorization is seen as a continuum of distance from thenatural environment. The continuum starts with the primary sector, which concerns itself with the

utilization of raw materials from the earth such as agriculture and mining. From there, the distance

from the raw materials of the earth increases.

Every economy consists of three sectors. They are primary sector (extraction such as mining,agriculture and fishing), secondary sector (manufacturing) and the tertiary sector (service sector).Economies tend to follow a developmental progression that takes them from a heavy reliance onprimary, toward the development of manufacturing and finally toward a more service basedstructure. Historically, manufacturing tended to be more open to international trade and

competition than services. As a result, there has been a tendency for the first economies toindustrialize to come under competitive attack by those seeking to industrialize later. The resultantshrinkage of manufacturing in the leading economies might explain their growing reliance on theservice sector. However, currently and prospectively, with dramatic cost reduction and speed andreliability improvements in the transportation of people and the communication of information, theservice sector is one of the most intensive international competition. The service sector is the mostcommon workplace in India.

The service sector consists of the soft parts of the economy such as insurance, government,tourism, banking, retail, education, and social services.. In soft-sector employment, people use

time to deploy knowledge assets, collaboration assets, and process-engagement to createproductivity, effectiveness, performance improvement potential and sustainability. Serviceindustry involves the provision of services to businesses as well as final consumers. Services mayinvolve transport, distribution and sale of goods from producer to a consumer as may happen inwholesaling and retailing, or may involve the provision of a service, such as in pest control orentertainment. Goods may be transformed in the process of providing a service, as happens in therestaurant industry or in equipment repair. However, the focus is on people interacting with peopleand serving the customer rather than transforming physical goods.India stands out for the size and dynamism of its services sector. The contribution ofthe services sector to the Indian economy has been manifold: a 55.2 per cent share in

gross domestic product (GDP), growing by 10 per cent annually, contributing toabout a quarter of total employment, accounting for a high share in foreign directinvestment (FDI) inflows and over one-third of total exports, and recording very fast(27.4 per cent) export growth through the first half of 2010-11.

In the current economic scenario it looks that the boom in the services sector is here to stay asIndia is fast emerging as global services hub. Indian service industry covers a wide gamut ofactivities like trading, banking & finance, infotainment, real estate, transportation, security,management and technical consultancy among several others. The major sectors that combinetogether to constitute service industry in India are listed below.

Information Technology


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Trade Education Financial services Media Hospitality, accommodation and food services Entertainment, culture and recreation Transportation and warehousing Storage Communication Healthcare & social assistance Tourism Public utilities Real estate and leasing Public administration and defence Business support services

FACTS ABOUT INDIAN ECONOMY

The Economy of India is the ninth largest in the world by nominal GDP and the third largest by

purchasing power parity (PPP). The country is one of the G-20 major economies and a member of

BRICS. In 2011, the country's GDP PPP per capita was $3,703 IMF, 127th in the world, thus

making a lower-middle income economy.

The independence-era Indian economy (before and a little after 1947) was inspired by the Soviet

model of economic development, with a large public sector, high import duties combined with

interventionist policies, leading to massive inefficiencies and widespread corruption. However,

later on India adopted free market principles and liberalized its economy to international trade

under the guidance of Manmohan Singh, who then was the Finance Minister of India under the

leadership of P.V.Narasimha Rao the then Prime Minister. Following these strong economic
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/IMFhttp://en.wikipedia.org/wiki/Economy_of_the_Soviet_Unionhttp://en.wikipedia.org/wiki/Economy_of_the_Soviet_Unionhttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/P.V.Narasimha_Raohttp://en.wikipedia.org/wiki/Prime_Ministerhttp://en.wikipedia.org/wiki/Prime_Ministerhttp://en.wikipedia.org/wiki/P.V.Narasimha_Raohttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/Economy_of_the_Soviet_Unionhttp://en.wikipedia.org/wiki/Economy_of_the_Soviet_Unionhttp://en.wikipedia.org/wiki/IMFhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)


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reforms, the country's economic growth progressed at a rapid pace with very high rates of growth

and large increases in the incomes of people.

India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing

economies in the world. The growth was led primarily due to a huge increase in the size of the

middle class consumer, a large labor force and considerable foreign investments. India is the

fourteenth largest exporter and eleventh largest importer in the world. Economic growth rates are

projected at around 6.9% for the 2011-12 fiscal year.

Different Sectors of Economy

Primary Sector

The primary sector of the economy extracts or harvests products from the earth. The primary

sector includes the production of raw material and basic foods. Activities associated with the

primary sector include agriculture (both subsistence and commercial), mining, forestry, farming,

grazing, hunting and gathering, fishing, and quarrying. The packaging and processing of the raw

material associated with this sector is also considered to be part of this sector.

In developed and developing countries, a decreasing proportion of workers are involved in the

primary sector. About 3% of the U.S. labor force is engaged in primary sector activity today,

while more than two-thirds of the labor force were primary sector workers in the mid-nineteenth

century.

Activites undertaken by directly using natural resources.ExampleAgriculture, Mining, Fishing,

Forestry, Dairy etc.

It is called primary sector because it forms the base for all other products that we subsequently

make.

Since most of the natural products we get are from agriculture, dairy, forestry, fishing it is also

called Agriculture and related sector.

Secondary Sector

The secondary sector of the economy manufactures finished goods. All of manufacturing,

processing, and construction lies within the secondary sector. Activities associated with the

secondary sector include metal working and smelting, automobile production, textile production,
http://en.wikipedia.org/wiki/Labour_in_Indiahttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/Fiscal_year#Canada.2C_Hong_Kong.2C_Indiahttp://en.wikipedia.org/wiki/Fiscal_year#Canada.2C_Hong_Kong.2C_Indiahttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/Labour_in_India


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chemical and engineering industries, aerospace manufacturing, energy utilities, engineering,

breweries and bottlers, construction, and shipbuilding

1.It covers activities in which natural products are changed into other forms through ways of

manufacturing that we associate with industrial activity.

2. It is a next step after primary, where the product is not produced by nature but has to be made.

Some process of manufacturing is essential, it could be in a factory, a workshop or at home.

3. Example: Using cotton fibre from plant, we spin yarn and weave cloth; using sugarcane as a

raw material we make sugar or gur we convert earth into bricks.

Since this sector is associated with different kinds of industries, it is also called industrial sector.

Tertiary Sector

The tertiary sector of the economy is the service industry. This sector provides services to the

general population and to businesses. Activities associated with this sector include retail and

wholesale sales, transportation and distribution, entertainment (movies, television, radio, music,

theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and

law.

In most developed and developing countries, a growing proportion of workers are devoted to the

tertiary sector. In the U.S., more than 80% of the labor force are tertiary workers.

1.These are the activities that help in the development of the primary & secondary sector.

2. These activities by themselves do not produce good but they are an aid and support to the

production process.

3.Example: a)Transportation--Goods that are produced in the primary sector need to be

transported by trucks or trains and than sold in the wholesale and retail shops;

b) Storage--at times it is necessary to store these products in godowns, which is also a service

made available.c)Communication --talking to others on telephone);

d) Banking--borrowing money from the banks.

4.Since these activities are generate services rather than goods it is also called Service sector

Quaternary Sector

The quaternary sector of the economy consists of intellectual activities. Activities associated with

this sector include government, culture, libraries, scientific research, education, and information

technology.


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Quinary Sector

Some consider there to be a branch of the quaternary sector called the quinary sector, which

includes the highest levels of decision making in a society or economy. This sector would include

the top executives or officials in such fields as government, science, universities, nonprofit,

healthcare, culture, and the media.

An Australian source relates that the quinary sector in Australia refers to domestic activities such

as those performed by stay-at-home parents or homemakers. These activities are typically not

measured by monetary amounts but it is important to recognize these activities in contribution to

the economy.

.

1.1 Service Sector of India

India's large service industry accounts for 57.2% of the country's GDP while the industrial and

agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant

occupation in Rural India, accounting for about 52% of employment. The service sector makes up

a further 34%, and industrial sector around 14%

1.2 Service Sector Contribution to Indian Economy

The contribution of the services sector to the Indian economy has been 55.2% in GDP and hasbeen growing by 10% annually. In terms of employment, although the primary sector is thedominant employer followed by the services sector, the share of the services sector has beenincreasing over the years.

In medieval times Agriculture sector was the backbone of Indian economy, but as the time passed

on, Indian economy as a whole has gone retrogressive metamorphosis and came out of the agrosector but still holds good control over the economy. Service sector is one of the fastest growing

fields in the recent years and has made tremendous contribution to the Indian economy with a

55.2% share in GDP.

The importance of the service sector can be gauged by looking at its contributions to different

aspects of the economy. This sector managed to be at top even if industrial and agriculture sectors

are combined.
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Some services have been particularly important for this improving performance in India. Software

is one sector in which India has achieved a remarkable global brand identity. Tourism- and Travel-related services and transport services are also major items in Indias services.

On the positive side, at global level, medium term prospects for services are generally better than

those for the manufacturing sector with international investment in the services sector expected to

grow relatively faster.

Despite of growth and prosperity in this sector there are many challenges like retaining the

competitiveness in the sectors in which India has made the mark like IT & ITeS and

Telecommunication

The second challenge lies in making inroads into some traditional areas such as tourism andshipping where other countries have already established themselves. but where the potential for

India is nevertheless very high.

The third challenge is in making forays into globally traded services in still niche areas for India,

such as financial services, health care, education, accountancy, and other business services where

India has a large domestic market and has also shown recent signs of makinga dent in the

international market, but only a very small part of the full potential has been tapped.

India needs to address these challenges in order to stay ahead and outperform in these diverse

service sectors then only in the coming years if we have dream of a developed India.

CONTRIBUTION OF SERVICE SECTOR TO

INDIA'S GDP 2011

SERVICE SECTOR

PRIMARY AND SECONDARY

SECTOR


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1.3Indian Aviation Industry Overview & Contribution

India is poised to be among the top five aviation nations in the world in the next 10 years.Currently, India is the 9th largest civil aviation market,"Recent estimates suggest that domestic airtraffic will touch 160-180 million passengers a year, in the next 10 years and the internationaltraffic will exceed 80 million passengers a year,

The Indian Aviation Industry is exploring opportunities to improve connectivity and is alsolooking at enhancing the number of Indian carriers to various countries."One of the keyachievements of India in the last decade has been to set-up an independent regulator for economicregulation of airports.

1.4Aviation - Market Size

In the last decade, domestic air traffic has quadrupled from 13 million to 52 million andinternational traffic more than tripled to 38 million. A similar trend is observed in the cargosector.The rapidly expanding aviation sector handles 2.5 billion passengers across the world in ayear; moves 45 million tonnes of cargo through 920 airlines, using 4,200 airports and deploys27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to andfrom 40 countries.

Passengers carried by domestic airlines during Jan-Nov 2011 were 55.03 million as against 46.81million during the corresponding period of previous year thereby registering a growth of 17.6 percent, according to data released by Directorate General Civil Aviation (DGCA).

The air transport (including air freight) in India has attracted foreign direct investment (FDI)worth US$ 423.31 million from April 2000 to September 2011, according to the data provided byDepartment of Industrial Policy and Promotion (DIPP).

Private carriers are anticipated to post a combined profit of US$ 350US$ 400 million for thefinancial year ending March 31, 2012, as per a report titled '2011-12 Aviation Industry Outlook'by Centre for Asia Pacific Aviation (CAPA) India. CAPA India expects domestic traffic growth of17-18 per cent, possibly as high as 20 per cent. International passenger numbers, which grew by

about 10 per cent last year, are expected to increase towards the upper end of a 10-12 per centrange over the next 12 months.

Aviation - Recent Developments

The ground-breaking ceremony of the new terminal at the Ibrahim Nasir InternationalAirport was held on December 19, 2011. The project is being undertaken by a consortiumled by GMR Group. Malaysian Airport is GMR's partner for the project which will becompleted by 2014. The project is estimated to cost US$ 510 million

The Turkish Airlines plans to expand its operations in India by 2012. "India is a veryimportant market for us and we need to fly to at least five cities there," according to Temel

Kotil, CEO, Turkish Airlines


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CAPA expects India's carriers to place orders for up to 200 new aircraft this year, with alist price of US$ 11 - US$ 12billion. This will include about 125-150 narrow bodies, 30-50regional aircraft and 10-15 wide bodies

Aviation - Road Ahead

The Indian aviation sector is a major economic driver for prosperity, development andemployment. Massive investments in airport infrastructure have led to world class airportswhich have become the symbol of India's growth story.

India is poised to emerge as the third largest aviation market in the world by the end of thisdecade. The sector with a growth of 18 per cent in domestic market is expected to generateapproximately 2.6 million jobs in the next one decade.

CHAPTER 2

2.1 Company Profile

Founded 2003

Commenced

operations9 May 2005

Hubs Bengaluru International Airport (Bangalore)

Secondary hubs

Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Netaji Subhash Chandra Bose International Airport (Kolkata)

Focus cities

Chennai International Airport Cochin International Airport (Kochi) Tiruchirapalli International Airport (Trichy) Pune International Airport Rajiv Gandhi International Airport (Hyderabad) Sardar Vallabhbhai Patel International Airport (Ahmedabad)

Frequent-flyer King Club
http://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Bengaluru_International_Airporthttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Netaji_Subhash_Chandra_Bose_International_Airporthttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Chennai_International_Airporthttp://en.wikipedia.org/wiki/Cochin_International_Airporthttp://en.wikipedia.org/wiki/Tiruchirapalli_International_Airporthttp://en.wikipedia.org/wiki/Pune_International_Airporthttp://en.wikipedia.org/wiki/Rajiv_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patel_International_Airporthttp://en.wikipedia.org/wiki/Frequent-flyer_programhttp://en.wikipedia.org/wiki/Frequent-flyer_programhttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patel_International_Airporthttp://en.wikipedia.org/wiki/Rajiv_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Pune_International_Airporthttp://en.wikipedia.org/wiki/Tiruchirapalli_International_Airporthttp://en.wikipedia.org/wiki/Cochin_International_Airporthttp://en.wikipedia.org/wiki/Chennai_International_Airporthttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Netaji_Subhash_Chandra_Bose_International_Airporthttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Bengaluru_International_Airporthttp://en.wikipedia.org/wiki/Airline_hub


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program

Airport lounge Kingfisher Lounge

Alliance Oneworld (future)

Subsidiaries Kingfisher Xpress

Fleet size 64 (+92 orders)

Destinations 71

Company

slogan Fly The Good Times

Parent company United Breweries Group

Headquarters The Qube, Mumbai, Maharashtra

Key people

Vijay Mallya (CMD) Sanjay Aggarwal (CEO) Hitesh Patel (EVP)

Website flykingfisher.com

2.2 History

Kingfisher Airlines began its operations on 9 May 2005, following the lease of four Airbus A320aircraft. The inaugural flight was from Mumbai to Delhi. On June 15, 2005, it became the first(and only) Indian airline to order the Airbus A380. It placed orders for five A380s, five AirbusA350-800 aircraft and five Airbus A330-200 aircraft in a deal valued at over $3 billion. Deliveryof the A330s was due to start in late 2007, followed by the A380s in 2010 and the A350s in 2012.

Ever since its launch in May 2005, Kingfisher Airlines has blazed a trail of innovations andintroduced a range of market-firsts that have completely redefined the whole experience of flying.By elevating its customers to a level of being guests and not just passengers, KingfisherAirlineshas endeared itself to consumers. Kingfisher Airlines was the first Indian airline to introduce in-flight entertainment (IFE) system on domestic flights. Passengers on-board are providedcomplimentary welcome kit that contains a pen, facial tissue and headphone to use with the IFEsystem. Kingfisher Airlines has made alliance with Dish TV to provide live TV entertainment topassengers.

As of July 2007, Kingfisher operates only on domestic routes; however it started its international

operations on 3rd September, 2008 with a flight between Bangalore and London, and later on
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added new international destinations, namely Hong Kong, Dhaka, Colombo, Singapore, Dubai and

Bangkok. However, on 15th September 2009, Kingfisher Airlines withdrew the London service.

On December 19th, 2007 Air Deccan and Kingfisher Airlines decided to merge. KingfisherAirlines parent company United Breweries (UB Group) have acquired 46% of Air Deccans

parent Deccan Aviation, which possesses 52% of the total stakes.

In May 2009, Kingfisher Airlines carrier over a million passengers that provided it the highestmarket share among the airlines in India.

2.3 Vision & Mission Statement

VisionThe KFA family will continually deliver a safe, value based and enjoyable travel

experience to all our guests.

MissionTo make Kingfisher Airlines the best in the world

2.4 Key Competitors

Airline Competitors Notes

Jet

Airways

direct 191 shared routes (59%)

Air India direct 177 shared routes (55%), 54 shared destinations

(17%)

IndiGo Air direct 125 shared routes (39%)

SpiceJet direct 118 shared routes (37%)

JET AIRWAYS

It is the largest Indian airline based out ofMumbai, Maharashtra. It operates over 400 flights

daily to 76 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi,

Chennai, Cochin, Ahmedabad, Bengaluru and Kolkata. It has an international hub at Brussels

Airport, Belgium. Jet Airways is owned by Naresh Goyal.
http://www.whichairline.in/airlines/jet-airwayshttp://www.whichairline.in/airlines/jet-airwayshttp://www.whichairline.in/airlines/jet-airwayshttp://www.whichairline.in/airlines/air-indiahttp://www.whichairline.in/airlines/indigo-airhttp://www.whichairline.in/airlines/spicejethttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Chennai_International_Airporthttp://en.wikipedia.org/wiki/Cochin_International_Airporthttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patel_International_Airporthttp://en.wikipedia.org/wiki/Bengaluru_International_Airporthttp://en.wikipedia.org/wiki/Netaji_Subhash_Chandra_Bose_International_Airporthttp://en.wikipedia.org/wiki/Brussels_Airporthttp://en.wikipedia.org/wiki/Brussels_Airporthttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Naresh_Goyalhttp://en.wikipedia.org/wiki/Naresh_Goyalhttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Brussels_Airporthttp://en.wikipedia.org/wiki/Brussels_Airporthttp://en.wikipedia.org/wiki/Netaji_Subhash_Chandra_Bose_International_Airporthttp://en.wikipedia.org/wiki/Bengaluru_International_Airporthttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patel_International_Airporthttp://en.wikipedia.org/wiki/Cochin_International_Airporthttp://en.wikipedia.org/wiki/Chennai_International_Airporthttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Indiahttp://www.whichairline.in/airlines/spicejethttp://www.whichairline.in/airlines/indigo-airhttp://www.whichairline.in/airlines/air-indiahttp://www.whichairline.in/airlines/jet-airwayshttp://www.whichairline.in/airlines/jet-airways


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INDIGO

It is a private, low-cost airline based in Gurgaon, Haryana, India. Since commencing

operations in August 2006, it has established itself as one of India's leading airlines using its

model of efficient, low-cost operations and by attracting customers with low fares. IndiGo has

the second largest share in India's domestic air travel market, only behind Jet Airways and as

of October 2011 it is the only airline in India making profit . IndiGo has grown faster than any

other low cost carrier in South Asia.

AIR INDIA

It is the flag carrier airline of India. It is part of the government of India owned Air India

Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia,

Australia, Europe and North America. Its corporate office is located at the Air India Building

at Nariman Point in South Mumbai. Air India has two major domestic hubs at Indira Gandhi

International Airport and Chhatrapati Shivaji International Airport. An international hub at

Dubai International Airport is currently being planned.

SPICE JET

It is a low-cost airline headquartered in Gurgaon, India. It began service in May 2005 and by

2008, it was India's second-largest low-cost airline in terms of market share. SpiceJet operates

274 flights daily to 32 Indian cities. Spicejet's fleet consists of 26 Boeing 737-800, 6 Boeing

737-900ER and 7 Bombardier Dash 8 Q400 aircraft. SpiceJet provides a wide range of

customer services on board such as catering. A maximum of 20 kg of baggage is allowed per

paying passenger.
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2.5 Organizational Structure

Kingfisher Airlines is led by a dynamic, extremely talented and experienced team:

Board of Directors

Dr. Vijay Mallya, Chairman& CEO Mr. SubhashGupte, Vice Chairman ,The UB GROUP Mr. PiyushMankad Mr. A.K Ravi Nedungadi Mr. DiwanArun Nanda Mr. V.K Rekhi Dr.NareshTrehan Mr. Rup Pillai

In an effort to tide over rough weather that has gripped the aviation industry, Vijay Mallya-

promoted Kingfisher Airlines is cutting 300 jobs, besides returning surplus aircrafts .

With the recession in the aviation sector worldwide, private Indian carrier Kingfisher Airlines on

Tuesday said it had deferred deliveries of a number of Airbus aircraft and sacked 300 employees.

"As part of a concerted effort to minimize the impact of the ongoing turbulence faced by the

aviation industry, we haveclosely examined aircraft utilization and have identified surplus aircraft

which are now redundant and are therefore being returned back," said the airlines spokesperson.

"We have already returned two aircraft and are closely monitoring the aircraft utilisation," the

spokesperson further added.

He said this move was part of the airline's strategy and restructuring measures to achieve cost

savings, rationalisation and operational efficiencies.


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According to sources, the airline has negotiated with Airbus to defer deliveries of 32 A320-family

aircraft to 2010-12 from 2008-09. Also, five of the 10 long-haul A340 aircraft it has ordered havebeen converted to A330/200s.

Kingfisher has five A380 superjumbos on order, scheduled for delivery from 2012, as well as 20

A350 aircraft scheduled for delivery from 2013. It also has a further 20 A330/200 aircraft on

order, making it one of the single largest stakeholders in the Airbus order backlog by number of

planes.

Part of Vijay Mallya's UB group, Kingfisher currently operates 424 domestic flights and two

international flights with a total of 86 aircraft.

The spokesperson said, "We examined the complete organization structure of the airline and

mapped the skill sets of the existing talent pool with the projected talent requirements of the

company. As a result, 300 employees were chosen to move on and have parted ways with the

company put in their resignations."

The airline offered them two months' salary.

CHAPTER 33.1 Marketing Strategies

Kingfisher airlines launched its domestic air service operations in May 2005.KFA was promoted

by UB group and offered a single class- Kingfisher Class. KFA successfully leverage the

youthful and vibrant image of its kingfisher beer brand and called its airlines as Funliners to

emphasize the fun-filled experience. Within the first six months of its launch, KFA managed to

corner a 6% market share in the domestic air travel mark.

KFA started its operation in May 7, 2005, positioning itself as a budget carrier and not as Low

Cost Carrier (LCC).

Following strategies were followed to make it one of the leading Airlines in India.

It came up with a very appealing promotional line Fly the good times and it reflected inthe experience the company offered to its passengers.

KFA has also launched Kingfisher express in order to tap into the growing LCC segment.


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It planned to re-launch its commercial air service called UB Airway again which it had towithdraw it due to government restrictions.

The company gave best services to its customers that were like providing world classinteriors, and in-flight entertainment systems.

The company came up with only one class airlines rather than other airlines that hadBusiness Class; Economy Class the idea was to combine Business Class experiences and

Economy Class experiences in one.

Having a single class freed up more leg space for passengers when compared to normal economy

class flights.

The company started addressing its customers as GUEST rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats so

as to provide better comfort.

KFA has set its sight to become Indias largest airline both is capacity and in market share.

STRATEGIES OF KINGFISHER AIRLINES

Market Penetration Strategy Product Development

Market Development Strategy Diversification

Market Penetration Strategy (1st Quarter) Encouraging existing Customer to buy more Showing benefits for using more (associating

freebies/extra service/membership with primary offering). Try to look for foreign entrant's weakness (Virgin Atlantic is lacking in Indian values &

tastes).

Product Development (2nd Quarter) Seek additional distribution channels (More tie ups & collaboration: Try seeking

collaboration with international carriers, Bilateral discussions over seats and code-sharingbetween the carriers).


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New product development. Market Development Strategy (3rd Quarter) Try to find out new customer group (Old-retired persons). Special offering for first time fliers. Diversification (4th Quarter) May go for other services like international flights etc. (concentric diversification). May go for arrangement fashion shows (horizontal diversification).

May go for other things, which can lure the youth

Four Ps of the Marketing

ProductKingfisher First (International & domestic routes) Kingfisher Class (International & domestic

routes) Kingfisher Redformerly known as Air Deccan (Domestic routes) Flying Chef .

Services

1.Domestic

Kingfisher FirstThe domestic Kingfisher First seats have a 48 inch seat pitch and a 125 degree seat recline. There

are laptop and mobile phone chargers on every seat. Passengers can avail of the latest international

newspapers and magazines. There is also a steam ironing service on board Kingfisher First cabins.

Every seat is equipped with a personalized IFE system withAVODwhich offers a wide range of

HollywoodandBollywoodmovies, English and Hindi TV programmes, 16 live TV channels and

10 channels of Kingfisher Radio. Passengers also getBOSEnoise cancellation headphones.
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Kingfisher ClassThe domestic Kingfisher Class has 32-34 inch seat pitch with footrests. Every seat is equipped

with personal IFE systems with AVOD on-board the Airbus A320 family aircraft. As in

Kingfisher First, passengers can access the latest movies, English and Hindi TV programmes, live

TV and Kingfisher Radio.

On-board the ATR 72-500s there are 17 colour LCD drop-down screens mounted along with

loudspeakers for audio in the cabin overhead, a head-end unit to handle CDs and DVDs, and a

crew control panel. The screens measure 12.7 cm by 9.3 cm, weigh 0.2 kg each and are spaced

every two or three seat rows along both sides of the cabin.

Kingfisher RedAfter Kingfisher Airlines acquired Air Deccan, its name was

changed to Simplifly Deccan and subsequently to Kingfisher Red.

Kingfisher Red is Kingfisher Airline's low-cost class on domestic

routes. Passengers are given complimentary in-flight meals and bottled water. A special edition of

Cini Blitzmagazine is the only reading material provided.

Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to its

low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red,

which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.

2. International

Kingfisher FirstThe international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat

pitch of 78 inches, and a seat width of 20-24.54 inches.[16] Passengers are given Merino wool
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blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and

alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.

Every Kingfisher First seat has a 17 inch widescreenpersonal televisionwithAVODtouchscreen

controls and offers 357 hours of programming content spread over 36 channels, including

HollywoodandBollywoodmovies along with 16 channels of live TV, so passengers can watch

their favorite TV programmes live. There is also a collection of interactive games, a jukebox with

customisable playlists and Kingfisher Radio. Passengers are given BOSE noise cancellation

headphones.

The service on board the Kingfisher First cabins includes a social area comprising a full-fledged

bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar

stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service includes

the conversion of the seat into a fully-flat bed and an air-hostess making the bed when the

passenger is ready to sleep.

Both Kingfisher First and Kingfisher classes featuremood lightingon theAirbus A330-200withlight schemes corresponding to the time of day and flight position.

Kingfisher ClassThe international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches

and a seat recline of 25 degrees (6 inches). Passengers get full lengthmodacrylicblankets, full size

pillows and business class meals. There are in-seat chargers and USB connectors.

Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD

touchscreen controls. The IFE is similar to that of the international Kingfisher First class.

3.In-flight entertainment

Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family

aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by the

France-based Thales Group.
http://en.wikipedia.org/wiki/Thales_Grouphttp://en.wikipedia.org/wiki/Personal_televisionhttp://en.wikipedia.org/wiki/Personal_televisionhttp://en.wikipedia.org/wiki/Personal_televisionhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Thales_Grouphttp://en.wikipedia.org/wiki/Thales_Grouphttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Personal_television


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4. Kingfisher Lounge

Kingfisher Lounges are offered to Kingfisher First passengers, along with King Club Silver and

King Club Gold members. Lounges are located in:

Bangalore Chennai Delhi Hyderabad Mumbai

4. King Club

The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members earn

King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental, finance

and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and Platinumlevels. Members can redeem points for over a number of schemes. Platinum, Gold and Silver

members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage allowance,

bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum members

get 5 upgrade vouchers.

Price

Kingfisher Airlines being a premium airline adopts a premium pricingstrategy Kingfisher Red itslow fare arm adopts a low fare pricing The pricing strategy aviation industry is highly dependenton the behaviour of the crude oil prices, dollar rates and competition. Fuel at present accounts for45 per cent of an airlines total operating cost.

PlaceThe company's flight service connects 59 destinations in India and eight international destinationswhich include London, Dubai, Hongkong and Singapore through its fleet of 66 aircraft. Kingfisher

Airlines is headquartered in Mumbai, Maharashtra, India.
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PromotionKingfisher Airlines as a brand is promoted in many ways When it was launched Yana Gupta wasthe brand ambassador Hoardings/ Press Release Kingfisher Airlines sponsors Mumbai ATP OpenKF First sponsors Mtv Style Awards 06 Kingfisher kicks off Rs 1 billion campaign (On Launch ofits international flight to London) Formula 1 team (Force India) IPL team (Royal Challengers)Red Pouch The colour RED King Club frequent flier programme Vijay Mallya himself is a

brand ambassador for all his brands including Kingfisher Airlines

As part of its promotional strategy the marketing team of KFA showcased the airline as the new

flying experience. The following initiatives were taken as part of its promotional strategy

1. Advertisements hoardings at airports depicted the stylish interiors of the Funliners,which conveyed youthfull, fun-filled, and world class image.

2. INOX multiplexes in Mumbai publicized KFAs special offers for a month.3. KFA was the official travel airlines for the cast and crew of Mangal Pandey- the movie.4. KFA made use of various fashion shows, celebrity golf matches, New Year parties all to

build its Kingfisher brand.

5. The UB groups monthly magazine called Pegasus published information about KFAalong with other information related to UB group.

6. In October they launched the King Saver Offerwhich said Fly like a King, dont playlike one.

7. KFA targeted the frequent fliers business traveler segment, which was dominated by JetAirways. By offering a King Saver Booklet, This booklet contained six free flight

tickets and was presented as a free gift if the passenger bought two such booklets each

worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege

Member (Gold or Platinum) card.

Service Blueprint

Service blueprinting was initially introduced as a process control technique for services thatoffered several advantages: it was more precise than verbal definitions; it could help solveproblems preemptively; and it was able to identify failure points in a service operation.


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Just as firms have evolved to become more customer-focused, so has service blueprinting. One

early adaptation was the clarification of service blueprinting as a process for plotting the customerprocess against organizational structure. Service blueprinting was further developed to distinguishbetween onstage and backstage activities. These key components still form the basis of thetechnique and its most important feature, that of illuminating the customers role in the service

process. In addition, it provides an overview so that employees and internal units can relate whatthey do to the entire, integrated service system. Blueprints also help to reinforce a customer-orientation among employees as well as clarify interfaces across departmental lines.

There are five components of a typical service blueprint:

Customer Actions

It includes all the steps that customers take as part of the service delivery process. Customeractions are depicted chronologically across the top of the blueprint. What makes blueprintingdifferent from other flowcharting approaches is that the actions of the customer are central to thecreation of the blueprint, and as such they are typically laid out first so that all other activities canbe seen as supporting the value proposition offered to or co-created with the customer.

Onstage/Visible Contact Employee Actions

The critical component is separated from the customer by the line of interaction. Those actions offrontline contact employees that occur as part of a face-to-face encounter are depicted as onstagecontact employee actions. Every time the line of interaction is crossed via a link from the customerto a contact employee (or company self-service technology, etc.), a moment of truth has occurred.

Backstage/Invisible Contact Employee Actions

This significant component of the blueprint is separated from the onstage actions by the veryimportant line of visibility. Everything that appears above the line of visibility is seen by thecustomer, while everything below it is invisible. Below the line of visibility, all of the othercontact employee actions are described, both those that involve non visible interaction withcustomers (e.g., telephone calls) as well as any other activities that contact employees do in order

to prepare to serve customers or that are part of their role responsibilities.

Support Processes

This component of the blueprint is separated from contact employees by the internal line ofinteraction. These are all of the activities carried out by individuals and units within the companywho are not contact employees but that need to happen in order for the service to be delivered.Vertical lines from the support area connecting with other areas of the blueprint show the inter-functional connections and support that are essential to delivering the service to the final customer.


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Physical Evidence

Finally, for each customer action, and every moment of truth, the physical evidence thatcustomers come in contact with is described at the very top of the blueprint. These are all thetangibles that customers are exposed to that can influence their quality perceptions.

Service Blueprint of Airlines


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Problems encountered in the process

Beleaguered Kingfisher Airlines would have to wait some more time for relief as its lenderscontinued deliberations on Sunday towards resolving the crisis, a day after Prime MinisterManmohan Singh said the government would explore ways to help the private carrier.

The cash-strapped airline cancelled 40 more flights on Sunday taking the total number ofcancelled services to over 250 flights in one week putting thousands of passengers toinconvenience.

Bankers of Kingfisher, who met in Mumbai on Saturday, are holding more rounds of talks on itsdebt restructuring.

Kingfisher is looking for additional working capital to tide over its severe cash crunch.

Kingfisher has approached lender-banks for a reappraisal of working capital requirementsfollowing a surge in price of jet fuel in recent months.

Civil Aviation Minister Vayalar Ravi has ruled out any bailout package for the airlines but saidefforts would be made to help the ailing aviation industry.

Asked whether government had decided on allowing Foreign Direct Investment by foreign airlinesin India, Mr. Ravi told reporters, It is not a matter to be decided in a day. The proposal may come

and then it will be considered. Kingfisher promoter Vijay Mallya is making a strong pitch for

allowing foreign airlines to pick up stakes in Indian carriers.

Recruitment process

"Kingfisher worked closely with us to fine tune our recruitement process - They made the wholeprocess very easy".

All recruitment assignments undertaken start with a thorough understanding of the business needs.We maintain a "Business Partnership" strategy with our key customers allowing us to work withthem delivering flexible, pro-active solutions tailored to their individual resourcing needs.

Job applicants are always treated with total respect and empathy. They are only ever submitted tovacancies with their prior consent, and receive professional

The business is independently owned and managed from head office premises located inWarwickshire with excellent communication links and easy access to all areas of the UK.


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Invaluable...

"I wanted to put on record my thanks for the support you and your team have given us during thisvery challenging period. Your pre-selection of candidates for our contractor positions to ensurenot only their technical skills met our requirements, but their personal attributes fitted with ourneeds has been invaluable - time was at a premium and you helped us in every way. This is notthe norm amongst recruitment agencies."

Professional approach...

"I was impressed with your professional approach. Unlike many agencies, I was not bombardedwith CV's. You have always wanted to get 'under the skin' of our recruitment needs andunderstand what skills, experience and personal qualities we sought. This has enabled you toassist in the formulation and placement of our advertisements, evaluate CV's and interviewapplicants, putting forward the right selection for us to interview.

The service provided has ranged from fulfilling single vacancies up to two major campaigns,including full-page national advertising, overseeing an open day and dedicated follow up. Withyour active involvement, we have successfully recruited and retained quality staff as ourheadcount increased three-fold. I am willing to discuss the service provided with prospectiveusers. My telephone number is available from Kingfisher."

Valued partner...

"Kingfisher have been really helpful in our recruitment process - advertising, filtering responsesand arranging interviews. They adapted their service to our requirements and preferences, and area valued partner".

Quality...

"The subsequent results have been very good, both in terms of the number and quality of staffretained. I would be happy to use you for any further recruitment exercises"


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Enthusiasm and energy...

"I am writing to thank the whole Kingfisher team for the commitment and dedication that youhave all demonstrated in helping us to achieve our recruitment objectives. We realised that ourrecruitment plan was extremely ambitious. From our early conversations, you convinced us ofyour credentials and that you had the drive and innovative ideas that we were looking for. I'mpleased to say it wasn't just talk."

Suggestions For Improvement Of Service Delivery

The organization may utilize both subjective and objective approach for the trainingprogrammes.

The organization may consider deputing each employee to attend at least one trainingprogrammes each year.

The In-house training programmes will be beneficial to the organization as well as employeessince it will help employees to attend their official work while undergoing the training.

The organization can also arrange part time training programmes in the office premises forshort durations, spanning over a few days, in order to avoid any interruption in the routine

work.

The organization can arrange the training programmes department wise in order to givefocused attention towards the departmental

The management must commit itself to allocate major resources and adequate time to training.


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Ensure that training contribute to competitive strategies of the firm. Different strategies needdifferent HR skill for implementation. Let training help employees at all levels acquire the

needed skill.

Ensure that a comprehensive and systematic approach to training exists, and training andretraining are done at all levels on a continuous and ongoing basis.

Ensure that there is proper linkage among organizational, operational and individual trainingneeds.

Skill based training (product/process training) should also be provided. Besides questionnaire other methods of post training evaluation should also be used like

interviews, self diaries, observation and supplement test.

The evaluation procedure must be implemented concerning trainer, trainee and subject. Post training feedback has to be continuous and should also be taken from line

manager/superior & from peers to find out the effectiveness and valuation of training.

The Kingfisher Training Academy

The KINGFISHER Training Academy provides the right infrastructure, meticulously designedtraining programs and an eminent panel of academicians and industry professionals. At theacademy, full potential is assessed and tapped, talents are honed, and skills are groomed to bringout the best in an individual by imparting customized and quality education in the new-age sectorsof Aviation, Retail, Customer Services Management and Hospitality. It focuses on Professionaland Personal Development, Expertise where main focus is on attitude, Creative and Analyticalskills. The training academy has a virtual university portal enabling students to gather and shareinformation. The Academy also has the train the trainers programme which enables the trainers

to update themselves and improve their own skills.

Training Management System

This is an end-to-end back-bone system for administrative, operations and record trackingactivities to facilitate the Training Administrators and Management. Key functions include:

Maintaining Database on Instructors and Training Activities Register student and track progression Evaluation of Instructor effectiveness View Assessment Results and provide feedback Training Manager to view overall Training and Learning Progress


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There is also an online assessment of the courses and to facilitate respective needs of the students

and provide faster updates.

Employee Empowerment

Kingfisher Airlines through its training process enables employees to take challenges and analyzesituations. They are therefore prepared to take responsibility and accountability for their actions.Thus employee empowerment is prevalent which is reflected through the various guesttestimonials. They are trained and given the authority to take action on matters that requireimmediate attention. The basis of this empowerment is the synergy of teamwork. When a problemarises the employees do not wait for an order from the top but instead listen to the matter and takeinitiative in solving it. Employee empowerment is evident in all services that Kingfisher provides

from ground services to baggage handling to in-flight services. The prime concern of all that makeKingfisher Airlines is safety and maximum powers are given to employees to ensure it. This is thereason why Kingfisher is way ahead of other airlines. Decisions are prompt, services are excellent,least delays and a warm welcome is what makes Kingfisher the most admired airlines.

Chapter 6

Physical Evidence

Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts.

Kingfisher Airlines was the first airline in India to operate with all new aircraft. On June 15 2005Kingfisher Airlines became the first Indian airline to order the Airbus A380, to be delivered by2014 Fleet size of 73 and 137 orders placed The planes have the best in-flight facilities that matchworld class standards


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Documents

Industrial Project - Sushant Dabas 1 (1)