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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.
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.
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
COLLECTION OF DATA
PRIMARY DATA SOURCES
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.
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.
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
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
4%
96%
5
0
ffp 5
pricing 43
safety 7
schedules 8
parameter
service on ground 12
online services 27
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.
no
24
yes
76
10
20
30
40
50
60
70
80
96 4
yes
no
kind of ffp
yearly
47
weekly
17 36
monthly
4%
yes
no
96%
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