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Case Study: Kingfisher Airlines (KFA) launched its domestic air service operations in May 2005. KFA was promoted by the UB Group and was positioned
Case Study: Kingfisher Airlines (KFA) launched its domestic air service operations in May 2005. KFA was promoted by the UB Group and was positioned as a budget carrier that offered a single class- "Kingfisher Class'. KFA was one among the very few airlines which offered discounted ticket prices with its aggressive pricing strategy. KFA successfully leveraged the youthful and vibrant image of its Kingfisher Beer brand and called its airlines as 'Funliners' to emphasize the fun-filled experience. It had targeted most of the customers in the age group of 25-40 years. Within the first six months of its launch, KFA managed to corner a 6% market share in the domestic air travel market. KFA also had plans to operate on international routes. However, the increasing popularity of low-cost airlines like Air Deccan, launch of new low-cost carriers like SpiceJet and GoAir, and Jet Airways' acquisition of Air Sahara, further intensified the competition in the Indian aviation sector. In an effort to make KFA profitable at the earliest, KFA modified its 'single class' approach and began to offer an upgraded business class service- 'Kingfisher First'. a. Discuss the marketing techniques adopted by Kingfisher Airlines. b. Understand the opportunities and challenges for a newly established airline in the Indian aviation industry.
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