Bangkok Airways

29
MARKETING STRATEGY (CURRENT & DOMESTIC)

description

Bangkok Airways Marketing Strategy

Transcript of Bangkok Airways

Page 1: Bangkok Airways

MARKETING STRATEGY (CURRENT & DOMESTIC)

Page 2: Bangkok Airways

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

Page 3: Bangkok Airways

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

Page 4: Bangkok Airways

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.

Page 5: Bangkok Airways

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”

Page 6: Bangkok Airways

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

Page 7: Bangkok Airways

PromotionMarketing Mix

Communication– TV Advertising

– Website

– Publicity

– Aircraft Wrap

– Billboards

Sales Promotion– Discounts

– Credit card

– Frequent Flyer Bonus

Page 8: Bangkok Airways

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)

Page 9: Bangkok Airways

Current Marketing Situation

Page 10: Bangkok Airways

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%

Page 11: Bangkok Airways

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%

Page 12: Bangkok Airways

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.

Page 13: Bangkok Airways

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

Page 14: Bangkok Airways

SWOT Analysis

Page 15: Bangkok Airways

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

Page 16: Bangkok Airways

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

Page 17: Bangkok Airways

Competitor Analysis

Domestic Marketing

Page 18: Bangkok Airways

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

Page 19: Bangkok Airways

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

Page 20: Bangkok Airways

Perceptual Map

IMAGE

PRICE

HIGH

HIGH

LOW

LOW

FULL COLOR = Focused CompetitorsGRAY SCALE = Other Competitors

Page 21: Bangkok Airways

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 - -

Page 22: Bangkok Airways

Recommendations

Domestic Marketing

Page 23: Bangkok Airways

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

??

Page 24: Bangkok Airways

Segmentation, Targeting Market, and Positioning

Domestic Marketing

Page 25: Bangkok Airways

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

Page 26: Bangkok Airways

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

Page 27: Bangkok Airways

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

Page 28: Bangkok Airways

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

Page 29: Bangkok Airways

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