Download - Bangkok Airways
MARKETING STRATEGY (CURRENT & DOMESTIC)
Agenda
Corporate Analysis– Corporate Overview
• Brief Background
• Marketing Mix Analysis– Product, Price, Promotion, Place, People
– Current Market Situation
– SWOT
– Competition
Recommendations for Future Domestic Market Development Recommended Segmentation, Targeting Market, and Positioning
Marketing Mix
Marketing Programs Recommendation
Brief Background
History 1968: Founded as Sahakol Air
– First private aviation company in Thailand
1986: Established as Bangkok Airways
– Country's first privately-owned domestic airline
– Initially offering scheduled flights from Bangkok to Krabi, Korat, and Surin
2004: Celebrated its 36th anniversary and unveiled its brand new campaign, "ASIA'SBOUTIQUE AIRLINE; Exclusive Service to Exotic Gems".
Dr. Prasert Prasattong-OsothChief Executive Officer
Capt. Puttipong Prasarttong-OsothPresident
Brief Background
How a bout's of Theme Created in 2004
– Trend of Boutique Hotels: Focus on give superior hospitality that is unlike others
– Boutique hotel is a term popularized in North America & the United Kingdom to describe hotels which offers Luxury Facilities, Unique & Intimate settings with Full Service Accommodations. Sometimes known as "design hotels" or "lifestyle hotels“
Bangkok Airways falls in similar segments– A boutique normally refers to a small specialized
business; often catering to niche markets.
– Applying this philosophy, Bangkok Airways' positioning as a "boutique airline" aims:
• To offer the best personalized service to passengers and to develop more exotic and cultural destinations.
• Strengthen Bangkok Airways' goals and to define the pillars of its brand.
ProductMarketing Mix
Mission Statement
“To offer the best personalized service to passengers and to develop
more exotic and cultural destinations”
Positioning
“Asia’s Boutique Airline”
ProductMarketing Mix
Airline & Airport Services
– Distinguishes itself with 5 main pillars
1.New Aircrafts 2. Appetizing Menu 3. Exclusive Services 4. Boutique Airport 5. Boutique Lounge
19 Fleet- Airbus 320- Airbus 319- ATR 72-500
3 Privately Own- Samui (1989)- Sukhothai (1996)- Trat (2002)
Blue RibbonBoutique Lounge
- Courtesy Corner- Kids Play Room- Free Internet & Wifi- Message Room- Reading Room
Quality Excellence Award
PromotionMarketing Mix
Communication– TV Advertising
– Website
– Publicity
– Aircraft Wrap
– Billboards
Sales Promotion– Discounts
– Credit card
– Frequent Flyer Bonus
PlaceMarketing Mix
Destination
20 Destinations to 9 Countries
Domestic International
1. Trat (TDX)India
1. Bengaluru (BLR)
2. Chaing Mai (CNX) 2. Mumbai (BOM)
3. Krabi (KBV) Bangladesh 3. Dhaka (DAC)
4. Lampang (LPT) Hong Kong 4. Hong Kong (HKG)
5. Pattaya (UTP) Malaysia 5. Kuala Lumpur (KUL)
6. Phuket (HKT)Laos
6. Luang Prabang (LPQ)
7. Samui (USM) 7. Vientiane (VTE)
8. Sukhothai (THS)Cambodia
8. Phnom Penh (PNH)
9. Siem Reap (REP)
Singapore 10. Singapore (SIN)
Myanmar 11. Yangon (RGN)
Maldives 12. Maldives Male (MLE)
Current Marketing Situation
Current Market Situation
Past Market Strategy Channel 60% of their Marketing & Advertising
Budget towards foreigners– 85% share vs. 15% Thais
– Due to key routes are Tourist/Holiday destinations
Key Issues Incident such as Bird Flu, Tsunami, Hamburger
Crisis, Thai Political Issues, etc. caused Bangkok Airways to revise their strategy.
Market Share of Passengers
Foreigners85%
Thai’s15%
Current Market Situation
Current Market Strategy Increase and channel their Marketing &
Advertising Budget towards local market– Increase budget from 40% to 60% Marketing &
Advertising budget
– Aims to increase local shares from 15% to 30%
Key Concerns Bangkok Airways lacks awareness in local
market
Unclear meaning of Boutique in local mindset– Local consumers relates Boutique Hotel to Bangkok
Airways Boutique Airlines as expensive
– In reality, the prices are no different from other airlines
Market Share of Passengers
Foreigners70%
Thai’s30%
Current Market Situation
Positioning: Asia’s Boutique Airline Aim’s to position Bangkok Airways as a Credible & Trust Worthy Airline, while
maintaining a Modern & Trendy Boutique-Like Character.
Bangkok Airways
Asia’s Boutique Airline
“50 Million Baht budget to Re-Launch Brand to local market”
Image Building rather than Sales Strategy
- Nantika Waranun -Deputy Director of the Department of
Advertising and Public Relations.
Current Market Situation
Focus on competing with “Branding” rather that “Pricing” Using their “Flagship” destination as key driver
Make campaigns and promotions in-line with
– Government activities of increasing tourism in Thailand
– Affiliates and Partners
Examples include– Samui Marathon
– Samui Golf Event
– Samui International Jazz Festival
– Samui Regatta
– Samui Fantasia
SWOT Analysis
SWOT
S T R E N G T H S
Private Airports
Lounges
Competitive Prices
Unique Theme
W E A K N E S S
Few Domestic Destinations
Customers perception of the word Boutique
Lack of customer awareness in domestic market
Lacks positioning in domestic market
SWOT
O P P O R T U N I T Y
Expanding to more exotic routes
Local Market
T H R E AT
Low cost airlines
Global instability
Fuel cost increasing
Political instability
Competitor Analysis
Domestic Marketing
Bangkok Airways
15%
Nok Air18%
Orient Thai10%
Others0%
Thai Air Asia31%
Thai Airways26%
Competitor Analysis
Domestic Market ShareFocused Competitors
Other Competitors
Direct In-Direct
**International Market Share:- Thai Airways = 46%- Thai Air Asia = 11%- Bangkok Airways = 2%
Source: 2010 Airport of Thailand
Fleet Size & Destination Comparison
Key Competitive Advantage
Maldives
Samui
Trat
Sukhothai
DetailsBKK
Airways
Thai Air
Asia
Thai
Airways
Fleet size 19 25 96
Countries 9 11 51
Destination 20 34 72
International 12 21 61
Domestic 8 13 11
Perceptual Map
IMAGE
PRICE
HIGH
HIGH
LOW
LOW
FULL COLOR = Focused CompetitorsGRAY SCALE = Other Competitors
Price Comparison
PLACES BANGKOK
AIRWAYS
THAI
AIRWAYS
AIR ASIA
TRAT (Koh Chang) 3190 - -
CHIANG MAI 2250 2535 1910
KRABI 5440 2905 2020
LAMPANG 2390 - -
PATTAYA - - -
PHUKET 2490 3325 2150
SAMUI 3300 4570 2414
SUKOTHAI 2550 - -
Recommendations
Domestic Marketing
Current Problem
Bangkok Airways
Lacks awareness in local market
Unclearness of Boutique in local mindset– Local consumers relates Boutique as expensive
– In reality, the prices are no different from other airlines
Ineffective Communication Tools/MethodsNot getting through to target customers
– Local consumers: Are still unaware of most of Bangkok Airways products, operations, events, programs (e.g. social responsibilities), etc.
HIGH
LOW COST
??
Segmentation, Targeting Market, and Positioning
Domestic Marketing
Market Segmentation & TargetingDomestic Marketing
Domestic Market
Foreigners
Marital Status Single
Dating CoupleMarried Couple
Travel TypesBusiness TravelersLeisure Travelers
Seasonal HolidaysAgency Travelers
DestinationDomestic
International
OccupationStudents
Employees
IncomeHigh
High-MiddleMiddle
Thais
Recommendations
1. Strengthen Bangkok Airways Brand Image & Positioning
– Clarifying the meaning of “Boutique Airlines”
– Bridge the perceptual gap
– Capture a position in consumer’s mindset
2. Increase brand awareness of Bangkok Airways to the Domestic Market
– Improve integrated marketing materials to focus on key targeted market consumers
3. Value-Added Brand
– Create social network “Bangkok Airways Club”
– External lounges in key locations where target consumers are located for members• Key Hotels
• Key Tourist Destinations
• Shopping Centers (e.g. Siam Paragon)
4. Create new “Exotic & Cultural” Destinations
– Expand to next most visited destinations and make it a key “Exotic Tourist Destinations”
Ensure operations match promises
1. Strengthen Brand Image & Positioning
Boutique– Exotic and Cultural Tourist Destinations
– A small specialized business, often catering to niche markets
– Personalized service to passengers
– Luxury at a reasonable price
THAILAND’S BOUTIQUE AIRLINE
2. Increase brand awareness to Domestic MarketIMC focused on Target Market
Group 1: Teenager Sector
– Top 10 International Universities in ThailandFor example:
• Do projects about Bangkok Airways Boutique Airlines for awards
• Special group packages
• Concerts
Group 2: Business Sector
– Top 10 International Corporations
– Top 10 Thai CorporationsFor example:
• E.g. Corporate events/seminars packages
Group 3: Travel / Hotels ??? I’m not sure what to put here. Feel free to change
• E.g. Weddings,
Brand Awareness / Recognition/ Recall
Trial
Like Products & Services
Repurchase
Habitual Purchases
Spread Positive WOM
3. Value-Added Brand
Make a trend so that people aren’t just buying the flight services, but they are buying the experience and more (like Starbucks)
Create social network “Bangkok Airways Club”
External lounges in key locations where target consumers are located for members– Key Hotels
– Key Tourist Destinations
– Shopping Centers (e.g. Siam Paragon)
* Can also apply to be Bangkok Airways Members or book flights at Lounges
Purchasing Airport Flight Destination
Add Value at
Post Purchase
Add Value at
Pre Purchase