Rise and fall of Kulula.com, an airline won consumers by different marketing approach

Underlying Factors
Behind the rise and fall of
Kulula.com
Course Teacher:
Dr. Sheikh Mohammad Rafiul Huque
Professor
Faculty of Business Studies
Bangladesh University of Professionals

Members
Speaker 01
Speaker 01 Speaker 02 Speaker 03 Speaker 04

Background of low-cost
airlines
• Affordable costs
• Stimulating Demand
• Competition
• Choice and Flexibility
• Regional Connectivity

Background of low-cost
airlines

History of kulula.com
• Founding years: July 2021
• Founded with a vision to make affordable airline
experience from booking tickets to flying.
• Grave attention with unconventional branding and
humorous branding lines.
• Kulula means “its easy” in Zulu language

Timeline of kulula.com
• July 2001: kulula.com established
• August 2001: Commenced operations as South Africa's first
'no-frills' carrier
• 2010: Forced to stop a campaign by FIFA related to the 2010
FIFA World Cup
• July 2012: Announced operation of the first of seven brand
new Boeing 737-800s
• March 2020: Suspended operations due to financial
constraints caused by the COVID-19 pandemic
• September 2021: Resumed operations
• June 1, 2022: Suspended all flights and entered business
rescue June 9, 2022: Business rescue practitioners
announced liquidation due to no reasonable prospect of
rescue

How kulula.com became
affordable
Simple
Operations
Direct Sales
Cost Effective
Operations
Lean Operating
Model
Innovative
Marketing

SWOT Analysis
Strength
• Low-cost Pricing Strategy
• Unique Branding Strategy
• Extensive Domestic
Network
• Witty Marketing
Campaign
• Simple Product Offerin
S
Weakness
• Limitation in international flights
• Dependency on South African
Market
• Dependency on Partner Airlines
• Misleading financial and
operational results
W
Opportunity
• Potentiality to expand
• Making strategic
partnership
• Rebranding
• Social Investments
• Utilization of
secondary airports
O
Threats
• Threat of new entrants
• Economic instability
• Fuel price volatility
• Regulatory changes
T

Why kulula.com caught
Attention of Consumers
• Humorous & Creative Marketing
• Low Cost Model
• Accesibility
• Innovative Services
• We're not just an airline; we're a plane with a funny
bone
• Flying with us is like a first date; awkward but
memorable.
• Why drive when you can fly? We'll even throw in the
clouds for free.

• Low Cost Model
• Accesibility

• Low Cost Model
• Accesibility
user-friendly online booking tools that facilitate
customers' ability
to look up flights, compare prices, and finish their
reservations.
Customers looking for simple travel arrangements
were drawn to
the ease of online flight booking, along with clear
pricing and adaptable payment methods.

• Low Cost Model
• Accesibility
online check-in, mobile boarding passes, and
ancillary services such as pre-paid baggage
allowances and seat selection.

Problems found
(Company end)
• Competition
• Operating Costs
• Regulatory Compliance
• Customer Service

Problems found
(Consumer end)
Regular
Services
Delayed
Comfort
Customer
Service
Booking
Procedure

Problems found
(Consumer end)
•
Consumers
got bad
customer
service.
• Found
technical issues
while booking
tickets
• Less Foods,
seating
arrangements,
• Bad weather,
technical issue,
operational
limitations
Regular
Services
Delayed
Comfort
Customer
Service
Booking
Procedure

Analysing Problems and
Solutions (Company end)
• Competition
• Operating Costs

• Competition
• Operating Costs
Constant Innovation:
To set oneself apart from rivals,
Kulula.com needs to concentrate
on innovation.

• Competition
• Operating Costs
Efficiency Measures:
The airline can look for ways to save
expenses and increase operational
efficiency.
Route and flight schedule
optimization may fall under this
category.

• Competition
• Operating Costs
The airline may make sure it
complies with all legal
obligations
by conducting regular audits and
training programs.

• Competition
• Operating Costs
Invest in extensive training
initiatives to provide
staff with the necessary skills
and expertise.

Solutions (Consumer end)
• Multichannel
Support and
Feedback
Mechanisms
• User-Friendly
Interface
•
• Enhancing
Comfort
Options
•
Communicatio
n and
Compensation
Regular
Services
Delayed
Comfort
Customer
Service
Booking
Procedure

Conclusion
• Kulula.com shut down their operations during Covid,
then resume again on September, 2021 . But they failed
to win the hearts of the consumers again. So they shut
down their operation permanently on June, 2022.
• The growth and collapse of Kulula.com in the airline
sector highlights the significance of adaptation and
continued competitiveness in a dynamic market
environment by illuminating the crucial interaction
between creative marketing techniques, affordability, and
operational issues.

Thank You for YOUR
Patience.
Questions are
MOST WELCOME!!!!

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