High flyer

BRAND LAUNCH MOST SUCCESSFUL

On May 8, 2005, "the king of good times" had more than one reason to celebrate. Not only was it Vijay Mallya's son Siddhartha's 18th birthday, it was also the launch of his Kingfisher Airlines (KFA).

So Mumbai's Air-India hangar had 2,000 guests "" industrialists, top politicians, glitterati and the media "" sipping champagne and checking out the impressive new Airbus A320 aircraft, flanked by Kingfisher's red-liveried hostesses. The festivities continued late into the night at a five-star hotel.

For Mallya, though, the party has just begun. In seven months, KFA has earned Rs 200 crore, flown over 500,000 passengers, grown to a fleet of nine Airbus A320 and expanded from four flights a day to 56. Equally important, Kingfisher Airlines bagged the third place in this year's Brand Derby: 64 per cent of those interviewed ranked it the third-most successful brand launch, while 11 per cent felt it deserved top slot.

KFA's success carries a simple, yet vital lesson: do your homework. When the decision to enter the aviation industry was taken in early 2004, Mallya and his team knew the going would be rough.

The 25-million seats Indian aviation industry was growing at 20 per cent, but it was on the backs of the new, low-cost players. Entrenched players like Indian Airlines and Jet Airways, too, were slashing ticket prices to cater to the new breed of have-ticket-will-travel passengers.

The challenge for the new airline was to stand out in the crowd, for all the right reasons. So, Kingfisher approached market research agency IMRB to assess a possible niche. IMRB interviewed 2,500 frequent air travellers, aged 21-45 years from SEC A1, A2 and B in the top 15 metros, where air travel markets are strong.

"The study revealed people wanted a young, trendy, fun and yet premium product," says Girish Shah, head, marketing, KFA. What also surfaced, in the course of the study, was the tremendous brand equity of Kingfisher beer.

The way ahead was clear: extend the Kingfisher brand into aviation, and focus on the young business traveller. "The challenge was to make the mother brand slightly more serious and relevant to air travellers," says Anu Raj, vice president, Equus Red Cell, the ad agency of Kingfisher Airlines.

Backed with an ad budget of Rs 25 crore, KFA began its ad campaign a few weeks before the launch, booking every possible touchpoint relevant to the business traveller.

Newspaper ads, radio spots, and a presence in upmarket stores like Westside and Shoppers' Stop, premium clubs like the Cricket Club of India... even with-it restaurants like Tendulkar's. Competitions and quizzes with free KFA tickets as prizes ensured customer interest.

In mid-August, KFA launched its second campaign "" "Freedom from boring air travel" "" to coincide with Independence Day. In keeping with the patriotic theme, KFA's trademark red carpets were laid out in the south Mumbai upmarket Inox multiplex, to welcome moviegoers to Mangal Pandey: The Rising.

Customer interest was definitely hooked, not least because of Mallya himself. Media analysts credit a large part of KFA's success to its flamboyant promoter and his directly addressing the press and customers.

"Kingfisher's is a PR-driven communication instead of a regular, advertising-driven communication," says Pranesh Misra, president and COO, Lowe Lintas. "It's inspired from Virgin, where Richard Branson, too, focuses more on PR and value-adds."

The value-adds have been critical for KFA, too. Attractive cabin crew in designer uniforms, gourmet meals and personal screens for each seat add to the premium experience.

On board, passengers watch a safety video featuring model-actress Yana Gupta and can then choose from five video channels and 10 radio channels. They are called "guests" and given gifts at the end of the flight "" sachets of flavoured tea and umbrellas during the monsoon.

All of which ensured good times for passsenger. But Indians don't like their good times to be accompanied by huge price tags, so KFA clubbed its other selling points with a biggie "" moderate price points.

Initially, KFA flights on the crowded Mumbai-Bangalore route were offered for just Rs 1,999 in a direct bid to lure passengers. Once the fish bit, it was reeled in with special, same-day return offers. That was a hit with business travellers, who usually return within the day.

To cast its net wider, KFA then offered special fares for Central government and defence personnel and their families. "Kingfisher has conveniently sandwiched itself between the upper end of Air Deccan customers and the lower end of Jet Airways, thus roping in both the segments," contends Harish Bijoor, CEO, Harish Bijoor Consults Inc.

Now it was time to land the catch. KFA managed to bag access to the Indian Airlines' terminals at major airports, allowing it to glide past the inevitable delays at the private airlines' terminals and ensure timeliness. IA staff was also roped in for the ground handling and kitchen duty handed over to Sky Gourmet.

"Outsourcing functions allows Kingfisher to cut cost and increase efficiency," says Kapil Kaul, CEO, Indian subcontinent and Middle East, Centre for Asia Pacific Aviation (CAPA). Plus, like low-cost airlines, Kingfisher effectively uses online ticketing, saving up on travel agents' commissions.

All of which adds up to an effective brand. But KFA still has a long way to fly. "Kingfisher doesn't offer business class. So it can't beat Jet in that segment," points out Bijoor. That shortcoming will be made good in March, but KFA's got rough weather ahead.

The Jet-Sahara merger could well capture half the market, while the rumoured Indian Airlines-Air-India partnership will generate even greater economies of scale for the state carrier. If the Kingfisher brand rides out those storms, it will really be a brand worth reckoning.