Kulula case study analysis Essay

How Kulula.com became a big blade in south Africa?In 2001, it was no secret that the national bearer dominated the domestic carrier market. 9/11 was going to miscellanea the world forever. South Africa was not a good market for first cost airline because of two main factors1) There were no moth-eaten regional airports.2) Comair Airlines, kululas holding company didnt have resiliency to launch a new stag notwithstanding the folks in kulula were determined and nothing was impossible for them. They refused to believe that it was mission impossible. The first argufy for them was to position the airline correctly. The folks had done their research and found that unoccupied market would be more interested in low fares and slight need for flexibility than business class.This mean that new airline could concede to offer no full service(No-frill) something which never had been available before but having no pre-book seating, free meals at board, or no possibility of rebooking to early(a) airlines, the aim was to keep the cost at minimum and savings passed on to the passenger.It could have been a huge mistake if kulula.com would have concentrated on low cost to position themselves. The smart way to position kulula on promise was to be sustainable and for long term and that is why kulula.com brand location of making it accessible and easy was on top.The second quarrel this airline faced was on deciding on a come upon and in the world of branding your brand name can find or sink. The name(kulula.com) has taken a brand values much(prenominal) as simplicity, honesty, respect, innovation, safety.So why was Kulula.com a winner?1. Available as a dotcom2. Easy to say.3. Means easily in zulu.4. Stood for a benfit, sort of than a service.The suitable name now decided upon, now was a time to launch the brand.It has tiny budget of 23 million rand as a loan and just one opportunity to get it right. It mandatory to be noticed and what was the better way was to make customers Superhero and for that reason that came with a punch line of Anybody can fly. The brands positioning line, Now anyone can fly, endeavoured to communicate to ordinary people that they could become superheroes as the airline fulfilled their hidden wish to fly.Porters hawkish modelThe five forces model depicts five elements which act on a business warlikeness. The South African airline industry experiences the following competitive forces which were identified by Michael Porter1) Potential entrants Kulula.com energy see some otherwise airlines coming into the market for example mango tree 1996, 1-Time though it liquidated and many other low cost airlines in the country. Foreign carriers including regional ones might likewise enter. 2) dicker power of suppliers Aircraft manufacturers, aircraft leasing companies, labour unions, fuel companies, airports, hotels and local transportation service. 3) Bargaining power of buyers-in the case of Kulula.com travel agents thought the power is low, business travelers, unemployed travelers, organized group tours.4) Substitute products Alternative travel modes for example, people might choose to use a bus, Greyhound, Inter-Cape, SA Road-Link or rail transport, private cars(transportation). 5) Intra-Industry competition The competitors for Kulula.com are South African Airways low cost models which are mango tree Airlines, South African Air Link, South African Express.Comparison of Kulula.com with Mango Airlines1) Both Mango Airlines and Kulula Airlines allow you to choose your seats online 24 hours before your flight.2) Both airlines are being copycats & using Boeing 737-800s, which use 26% little fuel than the MD82s, saving a lot in terms of coulomb emissions. The planes carry 186 people.3) Both airlines call centres were impressively quick at use the calls.