Stupendously sarcastic to competition & a saintly saviour to the sector – that’s Kingfisher…B&E’s Steven Philip Warner analyses...
It received nothing more than derision and mocking laughter when on a fine afternoon during the summer of 2005, Vijay Mallya promisingly announced the launch of a domestic carrier, destined to be the best in style, service and quality. There were chuckles all around the boardrooms and one Captain (G. R. Gopinath, MD, Air Deccan) even ridiculed the Kingfisher business model’s so-called superiority. “We are not in the business of fashion,” is what he had remarked... Today, Mallya effectively decides what Gopinath’s next strategic move should be. And it is this very ‘fashion-fanatic’ entrepreneur, ladies and gentlemen, who has swept across the domestic aviation sector disrupting many past taken-for-granted strategies in one stroke, giving nightmares to many struggling leaders in the sector like Jet Airways & Indian. That very style is what has allowed Vijay Mallya and his premium flier Kingfisher to run through the army of loss-making giants. From being a global stalwart in the alcoholic beverages industry to being a potent force in the airlines sector, which has in all reality changed the rules of the flying game; a game too hard for many to play and a game too easy for others to lose! But the wonder of it is that rather than focusing on one key strategy, Vijay Mallya actually used a plethora of tactics to fortify his position in the industry. B&E analyses the key ones...
Tactic No. 1: In-flight customer experience!
And it’s not the brilliant red colour that we’re talking about! Vijay Mallya, despite having introduced Kingfisher as a low cost carrier (LCC) airline, has extremely shrewdly repositioned the airline on the basis of quality being delivered to the customer rather than on low pricing! To a point where today, Kingfisher gives a stupendous promise of being a top-quality service airline, and for both economy and business classes alike. When asked about this tactically differentiating factor, Vijay Mallya stressed on the strong impact and importance of innovation, which created that special space for Kingfisher in the Indian skies. He divulges, “In terms of passenger service and delivering on our promises, Kingfisher Airlines has always been at the forefront by constantly innovating. The innovations span three broad areas – product and service offering, marketing related innovations and finally, innovations in terms of delivery and distribution. Even in the future, the focus will be on continuously enhancing operational efficiencies, increasing conveniences for guests so as to delight them even more and raising service standards even further!”
Mallya clearly has practised what he preaches. Think about it, forget domestic airlines, frequent flyers now vouch that Kingfisher’s in-flight customer experience is much better than that offered by even the best of international airlines. From most modern aircrafts, sumptuous gourmet cuisines (with additional helpings at the call of a button), vibrant ambience to undoubtedly the best in-flight entertainment system in the industry with about 30 live, video and radio channels, Kingfisher has truly created world class benchmarks in service quality. And how could we forget the quintessentially charming airhostesses. Quotes an amiable Supreet Kaur, a flight-attendant with experience at Kingfisher Airlines, “It’s a great place to work, with such a healthy atmosphere. Sometimes it gets rough ensuring that the passengers get the best of what we call world-class service. Surely, my experience at other airlines have not been this pleasing...” We can surely vouch for that, can’t we!
It received nothing more than derision and mocking laughter when on a fine afternoon during the summer of 2005, Vijay Mallya promisingly announced the launch of a domestic carrier, destined to be the best in style, service and quality. There were chuckles all around the boardrooms and one Captain (G. R. Gopinath, MD, Air Deccan) even ridiculed the Kingfisher business model’s so-called superiority. “We are not in the business of fashion,” is what he had remarked... Today, Mallya effectively decides what Gopinath’s next strategic move should be. And it is this very ‘fashion-fanatic’ entrepreneur, ladies and gentlemen, who has swept across the domestic aviation sector disrupting many past taken-for-granted strategies in one stroke, giving nightmares to many struggling leaders in the sector like Jet Airways & Indian. That very style is what has allowed Vijay Mallya and his premium flier Kingfisher to run through the army of loss-making giants. From being a global stalwart in the alcoholic beverages industry to being a potent force in the airlines sector, which has in all reality changed the rules of the flying game; a game too hard for many to play and a game too easy for others to lose! But the wonder of it is that rather than focusing on one key strategy, Vijay Mallya actually used a plethora of tactics to fortify his position in the industry. B&E analyses the key ones...
Tactic No. 1: In-flight customer experience!
And it’s not the brilliant red colour that we’re talking about! Vijay Mallya, despite having introduced Kingfisher as a low cost carrier (LCC) airline, has extremely shrewdly repositioned the airline on the basis of quality being delivered to the customer rather than on low pricing! To a point where today, Kingfisher gives a stupendous promise of being a top-quality service airline, and for both economy and business classes alike. When asked about this tactically differentiating factor, Vijay Mallya stressed on the strong impact and importance of innovation, which created that special space for Kingfisher in the Indian skies. He divulges, “In terms of passenger service and delivering on our promises, Kingfisher Airlines has always been at the forefront by constantly innovating. The innovations span three broad areas – product and service offering, marketing related innovations and finally, innovations in terms of delivery and distribution. Even in the future, the focus will be on continuously enhancing operational efficiencies, increasing conveniences for guests so as to delight them even more and raising service standards even further!”
Mallya clearly has practised what he preaches. Think about it, forget domestic airlines, frequent flyers now vouch that Kingfisher’s in-flight customer experience is much better than that offered by even the best of international airlines. From most modern aircrafts, sumptuous gourmet cuisines (with additional helpings at the call of a button), vibrant ambience to undoubtedly the best in-flight entertainment system in the industry with about 30 live, video and radio channels, Kingfisher has truly created world class benchmarks in service quality. And how could we forget the quintessentially charming airhostesses. Quotes an amiable Supreet Kaur, a flight-attendant with experience at Kingfisher Airlines, “It’s a great place to work, with such a healthy atmosphere. Sometimes it gets rough ensuring that the passengers get the best of what we call world-class service. Surely, my experience at other airlines have not been this pleasing...” We can surely vouch for that, can’t we!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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