Product Life Cycle

Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things: Products have a limited life, Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage There are 4 stages : Introduction Growth Maturity Decline

Stage 1 : Introduction
This is the starting stage of the Product. It is the introduction of the product in the market. The costs are very high. It takes time for sales volumes to pick up and they are slow. As it is a new product in the market, there is minimum or no competition in the market. The demand for the product has to be created through advertising and other promotions. The customers have to be prompted to try the product, as it is a new one. Strategies like 1. Advertising the product in the market 2. Offering discounts 3. Promotion through giving away gifts and other methods to attract the consumer can be implemented
.

Stage 2 : Growth
During this time, the product is recognized in the market and there is an increase in the demand. The cost of the product reduces due to economies of scale. The profitability starts to rise, as there is more demand and selling of the product. There is an increase in the competition in the market as there is new competition in the market from other producers. Because of the increased competition in the market, there is a fall in the prices to keep up with the competition. Strategies like 1. Decrease prices by reducing costs of productions 2. Product to be advertised heavily to stimulate sales 3. Brand image of the product is created through promotional activities

Stage 3 : Maturity
The product enters into maturity as competition intensifies further and market gets stabilized. Profits come down because of stiff competition, and marketing expenditures rise. The prices are decreased because of competition and innovations in technology. There is saturation in the market as there is no possibility of sales increase. This stage may last for a long periods as in the case of many products with longrun demand characteristics. However, eventually, demand of the product starts declining as new products are introduced in the market. Strategies like 1. Product may be differentiated from the competitive products and brand image may be emphasized 2. The warranty of the product may be extended 3. New markets may be developed.

Stage 4 : Decline
This stage is characterized by either the products gradual displacement by some new products or change in consumer buying behavior. The sales fall down sharply and the expenditure on promotion has to be cut down drastically. The decline may be rapid with the product soon passing out of market or slow if new uses of the product are found. Prices and profitability suffers a fall because of less demand. Costs become counter-optimal.

Strategies like 1. New features may be added to the product and its packaging may be made more attractive 2. Economy packs or models may be introduced to revive the market 3. The promotion of the product should be selective to reduce distribution costs.

About Kingfisher Airlines

Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Guwahati, Kolkata, Pune , Mangalore and Jaipur. In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeper seats with extendable footrests, and three-course gourmet cuisine.

Product Life Cycle of Kingfisher Airlines : Stage 1

Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts.The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad, Cochin, Mangalore and Jaipur. In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand.

Stage 2 : Growth
Kingfisher has posted a 19.7 per cent increase in passenger traffic in April 2007 over April 2006, due to the upsurge in domestic and international passenger traffic. The trend continues for the first half of May with a 16.7 per cent growth in the daily average passenger carriage in May 2006 as compared to May 2007.

Kingfisher Airlines domestic traffic posted a growth of 26 per cent. With the upswing in passenger carriage in April 2007, Kingfishers domestic market share rose to 18.2 per cent, bringing it on par with other full service carriers in this segment.

Stage 3 : Maturity

Stage 4 : Decline
Ever since the airline commenced operations in 2005, it has been reporting losses. After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$199.5 million) for three consecutive years. By early 2012, the airline accumulated losses of over 7,000 crore (US$1.4 billion) with half of its fleet grounded and several members of its staff going on strike. Kingfisher's position in top Indian airlines on the basis of market share had slipped to 5 from 2 because of the crisis. During late February 2012, Kingfisher Airlines started to sink into a fresh crisis. Several flights were cancelled and aircraft were grounded. Out of the 64 aircraft, only 22 were known to be operational by 20 February. With this, Kingfisher's market share clearly dropped to 11.3%. In March 2012, the airline was suspended by the International Air Transport Association from using its inter-airline fund clearing system.

What went Wrong?

Once rated as Asia Pacifics most respected brand, Kingfisher Airlines reels under the pressure of rising oil prices and the price war plaguing the airline industry of India. Since its inception in 2005, Indias only 5 star accredited airline has yet to post a profit. The situation has become so grave for Indias third largest airline that it might have to ask for a government bailout. The Income Tax authorities froze bank accounts of the airline for the non-payment of service tax arrears. The share price of the airline has plummeted from a Rs. 320 peak in 2007 to a life time low of Rs. 17.55. The company even made losses of Rs. 1,027 crores in the FY 2010-11. The present situation of Kingfisher can be attributed to mismanagement of the airlines and the over-ambitious plans of Vijay Mallya. So much borrowing has led Kingfisher into a debt trap and coming out of is going to take one big effort. Amid all this, Mallya is still confident that he will make through this crisis. The King of Good Times has said that kingfisher will not ask the government for a bailout. Though he requested for FDI in airline industry, lowering of the taxes and letting the airlines import fuel directly

Services
Kingfisher First The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches. Passengers are given Merino wool blankets, a pyjama to change into, fivecourse meals and alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors. Every Kingfisher First seat has a 17 inch widescreen personal television with AVOD touch screen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers can watch their favorite TV programmes live. There is also a collection of interactive games, a jukebox with customisable playlists and Kingfisher Radio. includes the conversion of the seat into a fully flat bed and an air-hostess making the bed when the passenger is ready to sleep.

: Kingfisher Class The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic blankets, full size pillows and meals. Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD touchscreen controls. The IFE is similar to that of the international Kingfisher First class. It can also be controlled by a detachable remote-control console fitted in the armrest. This device can be used to control the IFE, reading-lights, play games and even has a credit-card swipe for shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-messages, though the service isn't provided by Kingfisher.

Kingfisher Class
The domestic Kingfisher Class has 32-34 inch seat pitch. Every seat is equipped with personal IFE systems with AVOD onboard the Airbus A320 family aircraft. As in Kingfisher First, passengers can access movies, English and Hindi TV programmes, a few live TV channels powered by DishTV, and Kingfisher Radio. The screen is controlled by a controller-console on the seat armrest. Earcup headphones are provided free of cost to all passengers. The default channel shows, alternating every few seconds, the aeroplane's ground speed, outside temperature, altitude, distance and time to destination, the position of the aircraft on a graphical map, and one or more advertisements. Passengers are served meals on most flights. Before take-off, passengers are served bottled lemonade.

Kingfisher Red
After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on domestic routes. A special edition of Cine Blitz magazine is the only reading material provided. Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red, which they can redeem for free tickets to travel on Kingfisher Airlines

Marketing Strategies
Kingfisher Airlines is the first carrier in the country to offer live in-flight entertainment. Kingfisher Airlines Ltd and Dish TV have joined hands to provide live in-flight entertainment on Kingfisher aircraft. The service would enable airlines customers to book air travel ticket after securing no pay application on their GPRS-enabled mobile handsets. On the promotional front, Kingfisher has signed up the latest diva of Bollywood Ms. Deepika Padukone as the Brand Ambassador.

Achievements
King Club has won the Freddie Awards 2008 in the following categories: Best Bonus Promotion Best Customer Service Best Member Communications (First Runner-up) Best Award Redemption (First Runner-up) Program of the Year (Second Runner-up) Kingfisher Airlines has received three global awards at the Skytrax World Airline Awards 2010 Named Best Airline In India / Central Asia; Best Cabin Crew Central Asia. Kingfisher RED named Best Low Cost Airline in India / Central Asia. NDTV Profit Business Leadership Award for Aviation. India's only 5 Star airline, rated by Skytrax and 6th airline in the world. Rated India's Second Buzziest Brand 2008 by The Brand Reporter. Ranked amongst India's Top Service Brands of 2008 by Pitch Magazine.
Voted as India's Favourite Airline.

 Advertising

and Marketing

Competition :
Jet Airways Go Air

Air India Express Spice Jet

SWOT ANALYSIS A SWOT analysis carried out on the Airline reveals the following: Strengths Strong Brand value & Reputation in the minds of customers. Quality of the service.First airline to have new fleet of airbuses. Weaknesses High Ticket prices. Still not a profit-making organisation. Opportunities The expanding tourism Industry. Untapped Air cargo market. Under penetrated Domestic Market. Threats Competitors. Fuel Price Hike. Economic Slowdown/Recession.