Kulula

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 More' 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.

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