PBSB 812 Marketing Management

1. PBSB 812 Marketing Management Kulula Chicken Run

2. More about Kulula • Launched in 2001 • First low cost airline in SA with food optional at extra cost (pay per item) • Established by Comair which is a franchise of British Airways • Kulula means “Easily” in Zulu • Marketing Strategy can be summed up by words: • Cheap (Amazing deals!) • Convenient • Online

3. More about the Marketing Strategy • Uses “Ambush Marketing” with great success • Use of humour – using current news events to capitalize on – use to their advertising advantage • For ex. During 2010 using FIFA’s “draconian” rules to their advantage. “Unofficial carrier of the You-Know-What” – was withdrawn. Similar to Nando’s. • Works well, as it catches lots of attention. • Even dared competitors to lower prices during the Soccer World Cup in 2010

4. Competitors • Mango Airlines biggest competitor – Strap line – Easy on the pocket, easy on you • 1Time Airlines also competitor – Strap line – More Nice Less Price • To a lesser extent Virgin Atlantic Airlines – Strap line– Your airline either has it or it hasn’t. • All airlines compete aggressively on price • Kulula was first to cream the market – however need to innovate

5. Kulula’s Business Strategy • During August 2008 has broadened its brand appeal by the following sub-brands • Kulula air – domestic, regional (and soon to be international) flight bookings, as well as add-ons like cars, hotels etc. • Kulula travel – all-inclusive package holidays and the widest rage of hotels on offer in SA • Kulula connect – refreshingly simple and cost-effective internet and cell phone service packages • Also offer loyalty club – kululamoolah to put towards free flights

6. What is recently in the press....... • During February 2011, Kulula has started its fun again • Kulula will be delivering a herd of cows to Buckingham Palace so Prince William can pay Lobolo. Marketing Director – Nadine Damen has published letter to Wills to state that British cows were selected to avoid carbon emissions and also not to cause the animals distress by travelling by air! A potion of every Kulula flight booked until the day before the Royal Wedding will go towards purchasing cows for Kate!

7. Looking at the Market and the Marketing Mix – Back to Basics • The Market –Target market is mainly domestic travellers, wanting cheap, easy flights • Products – Flights and travel products • Price – Cheapest air fares • Place – Preferably sold via the Internet • Promotion – Using Ambush Marketing

8. Suggestions to enhance the Marketing Strategy • The Market is well defined • Products - should start using a differentiation strategy to keep the Product Life Cycle of Air Tickets from declining – in mature state at the moment – have diversified well into other “travel” products, but needs to revive the brand. Differentiate for instance on the way luggage is booked in – making it easier – pre-booking of luggage.

9. Suggestions to enhance the Marketing Strategy (continued) • Price – may include a strap line, such as – “how low can you go” pricing – to entice more customers on price- they do not have strap line at the moment – in line with ambush marketing and humour • Promotion – continue with ambush marketing. Suggest they constantly enhance/update the jokes for instance the humour using when boarding, as this is getting “boring” • Place – Advertise the benefits of using Internet more – offer more discounts and incentives to book online

10. References • Marketingweb – www.marketingweb.co.za/marketingweb/view/marketingweb/en/page72308?oid+ Accessed 7 March 2011 • http://marketing.bizcommunity.com/article/146/147/45942.html Accessed 7 March 2011 http://www.bizcommunity.com/Article/196/12/47321.html Accessed 7 March 2011

11. Chicken Run Group Members • Deseré Botha - 22502556