KULULA.

COM: Now everyone can fly

1. Kulula.com's Value Proposition Kulula.com's proposition is based on no frills which provide a low cost service. This proposition lies in the fact that there are no hidden costs on the purchase price, such as admin fees etc. Their product offering is kept to a minimum. There is no free service on board; food must be bought during the flight. Bookings are made predominately online (electronically); therefore no third parties are involved. Kulula.com believes the service needs to be safe and the booking system must be convenient and quick for customers with limited time. The travel experience is based on customer satisfaction after each flight in relation to the price paid. The on-line booking offers value though the elimination of agents and cuts out inconvenient collection of tickets as well as admin costs. 2. Kulula.com Target Market Kulula.com describes their target market as being Anyone who buys a ticket'; therefore it applies to the young, elderly, businessmen and women. Such a strategy impacts on marketing and communications in such a way that it in fact becomes easier. As an airline they are not trying to satisfy or gain the attention of a specific type of person, therefore it is easier to communicate and market to everyone as a whole. The more defined the segments are the more complicated their marketing and communications strategy became. 3. Promotion Strategy Kulula.com is South Africa's first true low-frills airline. Its somewhat unconventional, but very funky communication strategy contributed hugely towards its successful performance. The positioning line for kulula.com, "Now anyone can fly", was created to empower the man in the street to become a superhero as the airline fulfilled his hidden wish to be able to fly. Though limited resources have restricted the agency's ability to enter competitions, morrisjones&co's creativity has not gone unnoticed. The advertising agency looked after every single thing for the new airline, from cracking the look and feel of the website to churning out all the brochures. The agency received an Orchid award for the campaign. Their strategy was a huge a success. Morrisjones&co helped take kulula.com to new heights. Since launch, kulula.com has achieved year on year growth of 40%. It is South Africa's biggest online retailer. Kulula.com Expect Mor e' campaign was voted Campaign of the Year 2004 by SA consumers. Morrisjones&co were very involved with kulula.com on a strategic level. They were pivotal in selecting partners for them as well as devising pricing strategy for these services.

4. Kulula.com / morrisjones&co relationship Kulula.com was excited by and pleased with the work that morrisjones&co produced and the high service levels they offered. The agency clearly understood Kulula's brand and has demonstrated the ability to take kulula.com to the next level, albeit in their own style of advertising. Based on morrisjones&co experience during the launch of the airline, they enjoyed a good relationship for half a decade. Morrisjones&co were elated at the opportunity of deepening their relationship with kulula through work on the airline aspect of the brand. The brand's entrepreneurial leadership and dynamic, challenging approach to marketing resonates strongly with morrisjones&co as a team. It is imperative for a client to partner with its agency, rather than just hire one. A partnership means that the client wants its agency to play a key role in the company's development, exchanging results and data and working together to maximize the efforts of both parties. But when an agency is hired, the traditional client merely gives the agency a budget and objectives, and then tells the agency what went wrong at the end of each month. A partnership attitude as in Kulula.com's case is the approach that works best over the long run. 5. Sustainability of Kulula.Com's promotional campaign It is important for Kulula.com to understand that competitors will begin to match their prices by using new technology and eliminating unnecessary third parties. Their promotional campaign can be sustainable by continuing to advertise in its humorous fashion to make sure the brand becomes a culture. It is also important to remember that volatile operating costs are felt by all airlines, so it depends on their product differentiation. Today one can purchase a ticket from SAA at a lower rate than Kulula.com, which was unlikely when Kulula.com first entered the market. Bibliography Immediately after the establishment of the company Kulula airline has applied business form over the network to ensure that the activities of the company has always been operated . Kulula is a first airline applied forms of e - commerce through the Internet by selling tickets on the Internet and pay by Credit Card, Visa Debit, Master Card . Kulula has applied the method as follows to run their company : Kulula has established a commercial website to introduction of their company : bookings , search information on flights and promotion is very clear. This is proven by the construction of systems website linking with database extremely closely, and ultra simple and effective help customers and partners search for information very easily. Kulula has taken direct flight ' s cost on each flight through the website to which customers can select the flight suitable with their budget. Kulula has also taken the form of payment directly over the network through the Master Card, Visa Debit ,Master Card... customers need only enter information in their credit card, then all of

the remaining work will by the banking system and process Kulula only the confirmation in the database. The payment by this very quick and reasonable contribute to the overall increase rate of operation of the airline. Kulula will send tickets directly to the customer's email registered through the Internet. A method to receive information very quickly , convenience and savings . Kulula was directly applied to the B2C (Business to Customer) model , the sale of airline tickets over the network increases the rate of selling tickets through it continually maintains the system is its business . Kulula applied directly B2B model through agent who can sell the ticket and log in into the intranet . Identify Website is the most important to maintain the business of the employer so Kulula continuously improve their websites: simple, effective and economical. Kulula has used e-commerce in a closely through the network management as well as internal infrastructure to ensure the system has been operating continuously. Kulula has automated transactions through the Internet and the Web through which the report was the work of the airline 24/7/365 Kulula have catch the travel needs of the people in South Africa and quickly meet the needs that. This also contributes to add to the success of the their airline . 2save on costs Reduce production costs: Reduce the cost of paperwork, reduce costs to share information, the cost of printing and sending traditional text. Distribution system improved significantly in the form of payment over the network is a savings a lot of money for their airline . By this model Kulula has to reduce the cost of shopping too much (cost management and administrative costs printing). The information is updated through the website of Kulula quickly and effectively reduced the cost for the promoters information through other media. In addition to cuts costs on uniforms, do not use the waiting room before boarding the aircraft, there are no additional services during the presentation (food, Video, drinking water ...) Kulula also apply the model not flight - not return fare for our customers to reduce printing costs, the human resources as well as the problems occurred during flight. Manufacturers have chosen the way of payment in electronic business e-commerce to be able to handle the case of payment quickly, conveniently. payment on a completely handled by charge the system of the customer s bank , saving a transaction fee for their airline.

The target of Kulula is always simplify the transaction process to save the airline a maximum . additional revenue The technologies which have Kulula applied will increase more revenue for an airline significantly over : Increase speed to sell tickets over the network. The bookings over the network on the website through the communication convenience is a big advantage to increase sales of tickets every day. The issuing tickets so very simple and effective to increase the efficiency ticket a significantly it means increasing sales revenue of the airline.

The site design nature-friendly customers will contribute to tightened relationship with the carrier's customers. The main reason for customers to book the ticket of airline's frequent. Advertising on websites with B2B model also gives Kulula a small non-profits from other companies. In addition, there is a Kulula add additional services on the flight but required passengers to pay more for orther services . Passengers still may postpone or move flights to another date but prior notice to airline and to pay more for this service, This is the bargains airlie should the hearing, and always meet the needs of customers is the method of increasing revenue for the carrier.

Enhance for customers Customers can buy tickets of kulula airline anytime anywhere just have a computer or electronic equipment can access to the Internet Customers have more options for their flights. Farescof tickets will be customers to compare to the orther airlines carefully that do not need to direct your phone. Helping customers quickly find the flight in accordance with themself. Customers get a ticket very quickly after full payment of the costs for flights. Customers save a cost not small from the vehicle (car , bus ...), means of contact (phone) ... reduce to the accident , protect their health. The bookings over the network in addition to providing benefits to customers care about a secure credit card information, because in information technology as the current level losting

credit card information through the Internet is too much, but Kulula was timely and know it was for the information processing of customer data with 128 bit . Kulula was applied that technology in that time is the most secure .

Kulula has established a trust remarkable for clients and customers always have the right to respond if any notification to the timely.

3 / Why did Kulula set up ? Airline industry of South Africa has been ruled under the management of SAA (South Africa Airline) , manufacturers airline of South Africa's gorverment, has long history second in the world. Until recent years, passengers are mainly white people, even though they only to account for less than 10% of the population. More recently, appearing much competition with South Africa Airline such as Sun Air, Phoenix Air, Civair, FlightStar, and Intensive Air. But SAA has competed to orther company to describe this procedure out of their realm ... until the appearance of Kulula Airline, trendy and full of challenges. Currently, depending on whether you place your ticket at any price ticket of a twohour flight is only equivalent, or a lower cost of the bus. The firm used the aircraft painted green and blue as easy to attract attention and use Damen what she called "the human food" in your ads. "The promotion of Kulula.com never flaunt an aircraft or an air hostess Airline", she said Damen. "The ad takes the flavor and humor of the local". more than 80% registration of our tickets is through network . This is the success of Kulula Airline so this is the reason orther airline apply Kulula's business model into their airline , but in my opinion , I think if another airline company which want to copy Kulula business model will not success in their business because of doesn't suitable . The above example is the reason the airline Kulula was born. We can see Kulula have researched in Africa really carefully before the establishment, in addition to operating experience of the business as well as how the training will be very difficult for other companies have the copy. Kulula the objectives set out the other companies can see but other companies will not be able to do is to copy all the benefits as well as the success that Kulula has achieved. This model can be applied to the company of airline bargain but for the orther companies which want to copy this model into another areas will be very difficult to success. The awards Kulula has won in a short time Kulula has proven successful brilliantly in the field of aviation. That means there are many companies want to get this model. Kulula is an first airline sell ticket over the network rather than a carrier adopted e-commerce first, but Kulula has applied the correct time , correct services that they need investment, in addition to the training, experience in human resources contributes to this success.

The airline wants to copy this model, it was just copying the objectives of the proposed Kulula impossible copy all of the this model , so the orther airline must need for research purpose as market their investment. There are human resource is abundant, must have a separate brand name. Today many of the airline adopted Kulula had some success certain: JetStar, Tiger Airway but still can not compare with Kulula ... As well as in the field of information technology has a carrier DELL find their way without a company in this field can be applied until nowadays.

For other areas will see Kulula model is a model that bring big profits by applying up to the interests of customers with criteria: convenient and cheap. But other areas completely will be difficult to succeed in this model. For example, a company selling product online over the network difficult to apply is entirely because the company must have a contract with another company is the form of: transportation . It is a reason will make problem when som areas want to apply this model. Kulula model was applied as a model for the world but how to ensure it is operating activities or not will be a big challenge for the success of other companies.

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For business model e-commerce cooperation between companies and other companies (B2B) is very necessary but a company with the same type of business will bring some certain risks. Typical here if Kulula cooperation with Lastminutes.com No unified management: For an big airline such as Lastminutes.com then this is very difficult to implement. It is difficult to functions such as management, administrative, financial, they are the leaders of a people. It is the first reason to bring the risk of this cooperation. Do not check reliability of the buyer. When customers booking of Kulula synonymous with the customers want the fly of the airplane of Kulula not any other airline. Customers will have to respond if they do not correct the plane flights or the number of flights purchased. It will bring no small loss for the company because customers will think: "we are deceiving customers". That very taboo in the business models do not own model of electronic commerce. It is difficult for the passenger who can accept the two airlines cooperate with each other without any way similar to the aircraft or staff, ticket phases, control. because Kulula had features of the manufacturer. Ensure fairness between partners The success of the cooperation must be all related parties respected the same. The cooperation links with an organization with conflicting thoughts about internally is a cooperative non-

performance. The partnership must be the recognition and evaluation under the same way. This is very difficult to perform with the same two manufacturers to exploit a professional