Bangkok Airways

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Bangkok Airways marketing strategy

Text of 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 BackgroundHistory 1968: Founded as Sahakol Air First private aviation company in Thailand Country's first privately-owned domestic airline Initially offering scheduled flights from Bangkok to Krabi, Korat, and Surin

1986: Established as Bangkok Airways

2004: Celebrated its 36th anniversary and unveiled its brand new campaign, "ASIA'SBOUTIQUE AIRLINE; Exclusive Service to Exotic Gems".

Dr. Prasert Prasattong-Osoth Chief Executive Officer

Capt. Puttipong Prasarttong-OsothPresident

Brief BackgroundHow 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

Asias Boutique Airline

ProductMarketing MixQuality Excellence Award

Airline & Airport Services Distinguishes itself with 5 main pillars

1.New Aircrafts19 FleetAirbus 320 Airbus 319 ATR 72-500

2. Appetizing Menu

3. Exclusive Services

4. Boutique Airport3 Privately OwnSamui (1989) Sukhothai (1996) Trat (2002)

5. Boutique LoungeBlue Ribbon Boutique Lounge- Courtesy Corner - Kids Play Room - Free Internet & Wifi - Message Room - Reading Room

PromotionMarketing Mix Communication TV Advertising Website Publicity Aircraft Wrap BillboardsDiscounts Credit card Frequent Flyer Bonus

Sales Promotion

PlaceMarketing Mix

DestinationDomestic1. Trat (TDX) 2. Chaing Mai (CNX) 3. Krabi (KBV) India Bangladesh Hong Kong Malaysia Laos

International1. Bengaluru (BLR) 2. Mumbai (BOM) 3. Dhaka (DAC)

4. Lampang (LPT)5. Pattaya (UTP) 6. Phuket (HKT) 7. Samui (USM) 8. Sukhothai (THS)

4. Hong Kong (HKG)5. Kuala Lumpur (KUL) 6. Luang Prabang (LPQ) 7. Vientiane (VTE) 8. Phnom Penh (PNH)

Cambodia Singapore Myanmar Maldives

9. Siem Reap (REP) 10. Singapore (SIN) 11. Yangon (RGN) 12. Maldives Male (MLE)

20 Destinations to 9 Countries

Current Marketing Situation

Current Market SituationMarket Share of Passengers

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

Thais 15%

Foreigners 85%

Key Issues Incident such as Bird Flu, Tsunami, Hamburger Crisis, Thai Political Issues, etc. caused Bangkok Airways to revise their strategy.

Current Market SituationMarket Share of Passengers

Current Market Strategy Increase and channel their Marketing & Advertising Budget towards local market Increase budget from 40% to 60% Marketing & Advertising budget

Thais 30%Foreigners 70%

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

Current Market SituationPositioning: Asias Boutique Airline Aims to position Bangkok Airways as a Credible & Trust Worthy Airline, while maintaining a Modern & Trendy Boutique-Like Character.

50 Million Baht budget to Re-Launch Brand to local marketImage Building rather than Sales Strategy

- Nantika Waranun Deputy Director of the Department of Advertising and Public Relations.

Bangkok AirwaysAsias Boutique Airline

Current Market SituationFocus 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

SWOTSTRENGTHS Private Airports Lounges Competitive Prices Unique Theme

WEAKNESS Few Domestic Destinations Customers perception of the word Boutique Lack of customer awareness in domestic market Lacks positioning in domestic market

SWOTOPPORTUNITY 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

Competitor AnalysisDomestic Market Share Focused CompetitorsBangkok Airways 15% Thai Airways 26% Nok Air 18%

Direct

In-Direct

Thai Air Asia 31%

Orient Thai 10% Others 0%

Other Competitors

**International Market Share: Thai Airways = 46% Thai Air Asia = 11% Bangkok Airways = 2% Source: 2010 Airport of Thailand

Fleet Size & Destination ComparisonDetails BKK Airways Thai Air Asia Thai Airways

Fleet size Countries DestinationInternational Domestic

19 9 2012 8

25 11 3421 13

96 51 7261 11

Key Competitive Advantage Maldives Samui Trat Sukhothai

Perceptual MapIMAGEHIGH

PRICELOW HIGH

LOW

FULL COLOR = Focused Competitors GRAY SCALE = Other Competitors

Price Comparison

PLACES

TRAT (Koh Chang) CHIANG MAI KRABI LAMPANG PATTAYA PHUKET SAMUI SUKOTHAI

BANGKOK AIRWAYS 3190 2250 5440 2390 2490 3300 2550

THAI AIRWAYS 2535 2905 3325 4570 -

AIR ASIA

1910 2020 2150 2414 -

Recommendations Domestic Marketing

Current ProblemBangkok 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

HIGH

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.

??

LOW COST

Segmentation, Targeting Market, and Positioning Domestic Marketing

Market Segmentation & TargetingDomestic Marketing

Domestic Market

Foreigners

Thais

Travel TypesBusiness Travelers Leisure Travelers Seasonal Holidays Agency Travelers

Marital StatusSingle Dating Couple Married Couple

DestinationDomestic International

OccupationStudents Employees

IncomeHigh High-Middle Middle

RecommendationsEnsure operations match promises 1. Strengthen Bangkok Airways Brand Image & Positioning Clarifying the meaning of Boutique Airlines Bridge the perceptual gap Capture a position in consumers 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

1. Strengthen Brand Image & Positioning

THAILANDS BOUTIQUE AIRLINE

Boutique Exotic and Cultural Tourist Destinations A small specialized business, often catering to niche markets Personalized service to passengers Luxury at a reasonable price

2. Increase brand awareness to Domestic MarketIMC focused on Target MarketBrand Awareness / Recognition/ Recall

Group 1: Teenager Sector Top 10 International Universities in ThailandFor example: Do projects about Bangkok Airways Boutique Airlines for awards Special group packages Concerts

Trial

Like Products & Services

Repurchase

Group 2: Business Sector Top 10 International Corporations Top 10 Thai CorporationsFor example: E.g. Corporate events/seminars packages

Habitual Purchases

Spread Positive WOM

Group 3: Travel / Hotels ??? Im not sure what to put here. Feel free to change E.g. Weddings,

3. Value-Added BrandAdd Value at Pre Purchase Add Value at Post Purchase

Purchasing

Airport

Flight

Destination

Make a trend so that people arent 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