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HOW FREQUENT FLYER PROGRAMME HELPS IN GENERATING CUSTOMER LOYALTY for Kingfisher Airlines.

EFFORTS BY: PARITOSH BISHT (A1808710025) MBA 3C ROBIN AGARWAL (A1802010081) MBA IB

INTRODUCTION

AREA OF STUDY : AVIATION INDUSTRY FOCUS OF RESEARCH : HOW FREQUENT FLYER PROGRAMME HELPS IN GENERATING CUSTOMER LOYALTY for Kingfisher Airlines

OBJECTIVES
WHAT AFFECTS CUSTOMER LOYALITY TO A PARTICULAR AIRLINE? HOW OFTEN DO CUSTOMERS FLY WITH KINGFISHER? WHY THEY PREFER KINGFISHER OVER OTHERS? FIND OUT THE FINANCIAL STRATEGIES USED BY KFA TOWARDS ITS LOYAL CUSTOMERS. HOW CAN KFA H.R STRATIGIES IMPROVE THE CUSTOMER LOYALITY.

KING FISHER AIRLINES


Kingfisher Airlines is a private airline based in Bangalore, India. Currently, it holds the status of India's largest domestic airline, providing world-class facilities to its customers.

Owned by Vijay Mallya of United Beverages Group, Kingfisher Airlines started its operations on May 9, 2005, with a fleet of 4 brand new Airbus - A320, a flight from Mumbai to Delhi to start with.

KINGFISHER AIRLINES FREQUENT FLYER PROGRAM THE KING CLUB

KING CLUB KING RED KING SILVER KING GOLD KING PLATINUM

King Red : Qualification for King Red requires, or 3,000 Status Miles or 4,000 Partner Miles in a preceding 12 month period.
King Silver : Qualification for King Silver requires 30,000 Status Miles during a consecutive 12 month period. For requalification you need 54 Sector Points in 12 Months.

King Gold : To qualify for King Gold you need 60,000 Status Miles in preceding 12 months. To re qualify you need 108 Sector Points in preceding 12 months. King Platinum : To reach King Platinum you need 90,000 Status Miles in preceding 12 months.

METHODS OF RESEARCH

RESEARCH DESIGN Universe Sample size Sampling method Selection of Respondents Time period

: DESCRIPTIVE DESIGN : Finite : 100 : Convenience Sampling : Flyers of Kingfisher : 2 months

COLLECTION OF DATA
PRIMARY DATA SOURCES

observation questionnaire personal interviews


SECONDARY DATA SOURCES

companys website magazines and news papers

ISSUES AND CONCERNS GENERATED WHILE COLLECTING DATA

Time was the main constraint. The Work has to be completed within the stipulated time limit The sample size was restricted to 100 respondents. Since the project is of qualitative nature there was participants biased in some cases. The studies limited to customers who are frequently travel. The study limit to upper middle class and higher class travelers.

STRATEGIES USED BY KFA


FINANCIAL STRATEGIES : KFA came up with many new financial strategic moves that made it one of the leaders of aviation industry. It purchased brand new A320 aircrafts powered by the cockpit that was a paperless environment. In June 2005 KFA planned to order US$5 bn at the Paris Air Show, for 5 new A350-800 aircraft, and five A330-200 aircraft. KFA was first Indian carrier to place an order for A380s. In November 2005 it placed an order for 30 A 320 and 20 ATR72500 aircraft at the Dubai Air Show. This ATR72-500 was worth US$750.

HUMAN RESOURCES STRATEGIES:-

Prior to launch, KFA signed a non-poaching alliance with Air Deccan under which both the airlines agreed not to hire each others employee. KFAs flight attendants called Flying models were selected through a national level model contest. KFA also stressed the fact that its employees had to be capable enough to meet the airlines high service standards. Among one of the biggest HR move for KFA was addition of Nigel Harwood as Chief Operating Officer with effect from August 1, 2005, to strengthen its management team.

7Ps OF THE COMPANY


PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL EVIDENCE

SWOT ANALYSIS
STRENGTHS
Strong brand value and reputation of the company. Quality of the service. Its the first airline having new fleet of airbuses. Quality and continuous innovation. Very tough competition. High ticket pricing. Its still a nonprofit organization. The expanding tourism is one such area that can be tapped. The international market. Untapped air cargo market. The rising amount of competitors. Very high fuel prices. Saturation of the tourism industry.

WEAKNESS

OPPORTUNITIES

THREATS

DATA AND INTERPRETATION


Since how long you have been flying?
FLIGHTS
50 45 40 35 30 25 20 15 10 5 0 first time 1-5 times 5-10 times more than 10 times

45 38
FLIGHTS

15 2

How many times you flied with Kingfisher in last one year?
Kingfisher flight
11%
1 to 3

25% 64%

4 to 7
more thn 7

Does Kingfisher provide better service to loyal customers?


Loyal customer
yes 2nd Qtr

4%

96%

What features should kingfisher improve upon?


parameter
45 40 35 30 Axis Title 25 20 15 10

5
0

ffp 5

pricing 43

safety 7

schedules 8

parameter

service on ground 12

online services 27

Does Kingfisher offer travel worth against the price?


offer

no 46% yes 54%

Are all provisions made by Kingfisher to make your travel safe?


100 90 80 70 60 50 40 30 20 10 0

91

9
yes
safety

no

The safety feature of Kingfisher is its great feature. 91% of respondents agree that kingfisher offers and make travel safe. Just 9% of the respondents feel that by Kingfisher does not make travel safe.

Is frequency of flights sufficient?


frequency of flights sufficient

no

24

frequency of flights sufficient

yes

76

10

20

30

40

50

60

70

80

Are you a frequent flyer?


frequent flyer
frequent flyer

96 4

yes

no

Majority of FFP PLAN USERS


Kind of FFP

kind of ffp

yearly

47

weekly

17 36

monthly

Are you aware about the King Club?


King Club

4%

yes

no

96%

Which Frequent Flyer level Card Holder Are you?


Card Holder
card holder

40 31 18 7 kingfisher red kingfisher gold kingfisher silver kingfisher platinum

Are redemption awards attractive?


80

76

70

60

50

40

30

24

20

10

0 yes no awards

RECOMMENDATIONS
The company should take care of the existing customers so that they can be recommended to others The company can have more innovative advertisements and create more awareness about FFP. The company should focus more on television ads and newspaper ads for FFP . The redemption gifts should be made more attractive. The redemption goals should be made easier. The customers feel the validity of redemption points is too short and hence it should be increased.

CONCLUSION
Frequent flyers program play a great importance in generating customer loyalty in the aviation industry

As the survey was concerned only to Kingfisher Airlines : 96 % of the respondents felt that Kingfisher provide better service to loyal customers HIGHLY IMPORTANT CRITERIAS FOR RESPONDENTS WERE
Frequent flyers program In flight services Schedules Safety

ALTHOUGH kingfisher is really good but there are some loose ends to its FFP

Redemption goals are difficult to reach Validity of points is less or short , thus validity should increase People are aware of the programme but more emphasis should be made on FFP through television ads and newspaper ads

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