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 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-Osoth

President

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.

Product
Marketing Mix Mission Statement To offer the best personalized service to passengers and to develop more exotic and cultural destinations Positioning

Asias Boutique Airline

Product
Marketing Mix
Quality Excellence Award

Airline & Airport Services

Distinguishes itself with 5 main pillars

1.New Aircrafts
19 Fleet
Airbus 320 Airbus 319 ATR 72-500

2. Appetizing Menu

3. Exclusive Services

4. Boutique Airport
3 Privately Own
Samui (1989) Sukhothai (1996) Trat (2002)

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

Promotion
Marketing Mix Communication
TV Advertising Website Publicity Aircraft Wrap Billboards
Discounts Credit card Frequent Flyer Bonus

Sales Promotion

Place
Marketing Mix

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

International
1. 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 Situation

Market 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 Situation

Market 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 Situation

Positioning: 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 market

Image Building rather than Sales Strategy

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

Bangkok Airways
Asias Boutique Airline

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
STRENGTHS
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

SWOT
OPPORTUNITY
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 Analysis
Domestic Market Share Focused Competitors
Bangkok 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 Comparison

Details BKK Airways Thai Air Asia Thai Airways

Fleet size Countries Destination

International Domestic

19 9 20
12 8

25 11 34
21 13

96 51 72
61 11

Key Competitive Advantage Maldives Samui Trat Sukhothai

Perceptual Map
IMAGE
HIGH

PRICE
LOW 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 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

HIGH

Ineffective Communication Tools/Methods

Not 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 & Targeting

Domestic Marketing

Domestic Market

Foreigners

Thais

Travel Types
Business Travelers Leisure Travelers Seasonal Holidays Agency Travelers

Marital Status
Single Dating Couple Married Couple

Destination
Domestic International

Occupation
Students Employees

Income
High High-Middle Middle

Recommendations
Ensure 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 Market

IMC focused on Target Market
Brand Awareness / Recognition/ Recall

Group 1: Teenager Sector

Top 10 International Universities in Thailand
For 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 Corporations
For 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 Brand
Add 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