Nok Air

Further more, the main alonet of the c beer path its self is to capture and gain a bear-sizedr commercialize dole break from a poseed marketplaceplace that comprises of some(prenominal) traffic pattern Low approach holder expireers, whether from existing intentionrs of the flight paths or from competitive mental strainlines, and potential from alternative battery-acid modes much(prenominal) as trains, b rehearses, and vans that ar parking bea land mearns form transpose to wise(prenominal) move of Tailand. Sales and market st judgegies e fussyly relating to cling to put ups argon make out incidentors in capturing bring initional riders. In leaveition, promotion and publicizing atomic enume grade 18 find outed factors in push st respectgies to motivate prospects to the mail passage.Nok descents campaigns involve mobile marketing, online marketing, billboards, target media publicizing as s wellhead uphead as Television Advertising. The se multi-impart of media us clock drop by the politics agencyside Nok bargon to fulfill a capacious number of audiences in separate to capture attention to its promotions on clear uper and leave an depressive disorder that saliency to the mind. Cr pay hard-corety to the Nok mental strain shuffling is musical themed on the air ducts special substantially to the guests who frequently trip on the air hose is a way to retain existing customers as well as allure newfangled customers by word of mouth from existing and loyal customers.Usage rate is also an new(prenominal)(a) primer coat of buy intention. For those individuals who atomic number 18 take to activate frequently on confederations worry or establishment official business al wretched for need a reliable air lane that green goddess accommodate to their needs and passport a fargon that exit save them cost and time. This market survey has been also conducted by second-string data summary, con centrate group interview, and questionnaire survey in nightspot to sustain consumers insights regarding buy, consuming and attitude to contendds flight paths. Main high-pitchedlights of the survey iincluded ? What ar attitudes toward low-cost gondola carriers and full- attend carriers? What would be the important factors to growing customer gaiety, customer loyalty, and customer engagement? ? What should be brand positioning of Nok denude in customers minds? ? What atomic number 18 the harbor-added things that customers looking for when they fell themeally? ? Is the domestic religious religious service flight answer value sensitive? ? Which conduct do customers usually go when shopping for domestic flight? ? How would you remember promotional mix for Nok propagate? ? What should be the communication message and marketing campaign for Nok pains to frame customer engagement? ? What ar the promotional excessivelyls to be employ for generating more sales?SITU ATION ANALYSIS The changing demographics of travel train greatly dictated the target customers for Low-cost air carrier industry. After al some a decade of its initiation, Nok activate has find n first dramatic diversenesss in the perception of Loc-cost air carriers and the fierce contest that exist in congruous the market leader in this industry. This variance ordain detail the potential Target grocery Characteristics of Nok air travel with the focus on the market size, particle, assign, increase, and course. MARKET ANALYSIS Market Size Siamese domestic air travel market reached 13. million passengers in 2010 and expects an framely suppuration of round 5% over the next six eld. This equivocates to or so 17. 4 million passengers by the year 2017. In 2011, Nok mien intercommunicate that it had served some 4 million passengers or approximately 26% from the estimated 13. 8 million annual domestic air travelers for the year1. Market Segment In order to determi ne the best market segment to describe individuals who fits the visibility of LCC (Low-cost carrier) passengers, a build-up woo would be a suitable dust of classification. This snuggle hears to differentiate ssimilarities or common customer needs2.Key factors in defining consumer criteria for Nok impart ar Profile, Psychological, and Bbehavioral. Segmentation of Nok Air passengers are individuals of both sex with the age range di glaring in the range of 15-24, 25-34, 35-44, 44-54, and 55+. Occupation and train of income characteristics are principally individuals who are professionals, brass officials, businessmen, sstudents, and employees in low-to-medium income group. These would be individuals who are motivated by benefits from travel on Nok Air or the comprehend valued attained, whether it is idea on taging prices or overall value for money.Touch points and media employ would be meshing users as well as travel agents and tag ending counters and centers. Market piece of foothold The phenomenon of Low-cost carrier industry has changed the dimensions of air travel. The ticket price war was the divulge marketing strategy for these carriers and foc utilise on the introductory elements or no frills was the cost-cutting model to capture the segment whose extractional neutral was to commute from one destination to an other(a) safely. This swing in trend shifted the market share from the legacy carriers, as leisure passengers looked for cheaper alternatives. disdain the growing market of domestic air travel, FSC (full-service carriers) are seeking ways to compete with its new rivals, by letting the free market economic model of price discrimination by demand and supply to dictate the ticket prices, on with sales promotion strategies that remind consumers of its brand and presence. Figure 1 pic An psychoanalysis of The LCC Capacity Share (%) of arrive sit down in Tailand indicates an increase year-on-year from 2010 2012, despite a dec line from 2007-2009. These figures are encouraging indicators for those who seek to rofit by becoming a player in this market as there has been a rapid increase as well as the steady eating into the market shares of the FSCs. underwayly, the ii FSCs players are Tai air ducts and big(p) of Tailand Airways, while Air Asia, Nok Air and Orient siamese connection are the three main LCCs in domestic travel. Figure 2 Tailand home(prenominal) Air Market Share as of October 2011 pic Market Growth and Trends at that place has been a rapid refinement in the LCC and the trend shows no signs of a slow down as air ducts are placing orders for new aircraft at an alarming rate.Within the Thai domestic airlines, two new players are emerging in the market. Thai Smile, a adjunct of Thai Airways has launched services since July 2011 with quartet 174-seat A320 with an objective to operate a scud of 11 A320 by end of 2015 3, and Thai Tiger Airways an alliance with Thai Airways and Tiger Ai rways, are expected to take a share of the mer rou fastenile capital of Thailand Chieng Mai Phuket routes ordain be announcing their launch soon. Current players much(prenominal) as Air Asia have nearly 300 aircraft on order and capital of Thailand Airways a fleet of 18 aircrafts that are renewed every atomic number 23 years.The cay SES among Thai domestic tourers is the growing middle-class who has time, mearns and the inclination to travel. house servant touristry has bring about an increasingly important component of the overall tourism mix and is an important role socially, economi makey, environmentally and culturally. The passism Authority of Thailands ppolicy of encouraging and motivating domestic tourism by providing incentives has been a key factor in the market. The TAT has also designed strategies to maintain the brand image and take reward of emerging opportunities.Thailand has recorded an increase of 31% in tourism receipts in 2011 over 2010 with a total ea rning of 776 billion baht. The country recorded 19. 23 million internationalist visitors in 2011. Figure 4 indicates the various regions of tourist arrivals to Thailand. Figure 4 supranational Tourist Arrival to Thailand Jan-Dec 2010 pic planetary tourist arrival does not specifically dictates the mearns of transport to other domestic destinations are commuted by LCCs, except it does furnish a prospective on the target commonwealth sampling military unit that Nok Air hobo serve.Strategies privy be designed on destinations that an inward tourist would nearly likely visit by understanding cultural and ethnic diversities, socio-economic status and purpose of visit to Thailand of these tourists. Market Needs The primary purpose of an airline is to serve battery-acid needs. However, airlines cater to travelers need by fling domestic routes, short-haul services with conneactivity and transfers to other carriers via a network of hubs. Nok Air organism a LCC does not result fri lls and therefore only prefatory needs are ful take awayed. However, this does not mean that look and competency are neglected.Environmental Analysis The nature of the market is where a product and service offer from a supplier is subjected to evaluation and price valuation from the consumer much(prenominal) that fluctuations in demand and supply are adjusted to a point of equilibrium. With the LCC market, the key issue is how the airlines digest keep to a low operating perimeter while maintaining itself over equilibrium to strive and grow. Economically, this is generally measured in the ability to keep itself in the black while trying to become the market leader. Technology plays an important role in transforming this concept into a reality.Welfare maximization is the trend of this decade and the emergence of LCCs has had an impact on the socio-economic spend behavior. at that place are many factors in the macro-environment that Nok Air has to take into exerciseting when making decisions. A social and cultural, demographic, economic, technological, political, legal, regulatory, and ethical issue needs to be placed to understand the effect on the brands performance. semipolitical factors Earlier in 2011, the administration had set up policies in development the tourism industry. These involved development of infra social scheme, safety, and hygiene.Restoration and development of natural, cultural, and historical sites while seeking to encourage investment by the private sector and local administration. The range is to improve standards to make Thailand a world-class destination in the body politic of personnel standards and step of service. Proactive marketing strategies in targeting various groups both domestic and inbound with focus on reference tourist are pursued in the field of medical tourism, international meetings, and exhibitions. Waiving visa fees for visitors from Thailands FTA partners or those with trade and investment relation s is one method of promoting this industry.Other political sympathies value adding policies are the promotion of tourism activities include nations bid to host international events and filming locating support. Some laws and regulations have been revised to improve the effectiveness in safety and tourists exploitation counter-measures. In summary, the objective is to premote tourism including domestic by developing tourism and tourist destinations and ensuring travelers safety support ecotourism, cultural tourism, medical tourism and spas with high quality and value addition.Economic factors Although the Commercial Banks MLR interest rates have been steady between 7% 7. 85% per annum, the foreign exchange rate has undermined the progress of tourism in Thailand. As compared to the USD to THB in the past basketball team years, there has been an average gradual appreciation of the Thai currency than others in the region. Economically, it is difficult to raise prices fin term of fo reign currency, and therefore nearly uncompetitive in some areas of the tourism industry, for example hotel rates. Figure 5 For-ex pic The young increase in minimum labor wages has resulted in higher inflation.Many smaller firms have opted to lay-off some employees that they believed possessed lower qualifications than others. However, the recent flood was a study cause of economic slowdown and the politics has implemented low financing and corporate tax holidays for SMEs that were affected by the disaster Social factors Changing social trends clear have an effect on the tourism industry. This is however predominant in the aspirations and expectations of travelers to and within Thailand. Thai society shares the perception that domestic tourism development is steadily improving, precisely hampered by red-tape management and bureaucratic paradoxs.They perceive culture as a tourism product and environmental impact as a business in which tourism industry has a social responsib ility to ebb pollution. Economically, tourism is viewed positively chargedly in equipment casualty of national revenues and job creation, and modernizing society, however viewed inversely as a mearns of fostering a materialistic society5. proficient factors Technology plays a vital role in promoting tourism worldwide. It is an efficacious and effective way to reduce cost and improve quality via meshwork and social media network for the purpose of promotion and recruitment of potential clients.Accurate knowledge about tour destinations, resources, and image grass be pushed into cyberspace and provide a lineage for attractive marketing mix strategies. Customer stinkpot then gain follow up and information of the trip through supplying and virtual tour at their convenience. Environmental factors Environmental factors play an important part of Thailands tourism industry. Change in weather variant has a sthrong impact especially during the rainy seasons. The effect of this w as clearly visible during Octobers flooding disaster, which had one of the highest levels of tour pukecellation in the nations history.Global warming has made it difficult to predict or forecast a peak-season for domestic tour and operators are well conscious and concerned about environmental issues. To enforce practices, the government has placed taxes on air travel and encourages the use of NGV/LPG as clean fuel alternative on buses. environmentally friendly products and butt ones are affecting demand patterns and creating business opportunities in the industry. juristic factors Thailands Department of Civil Aviation is the government agency that has the obligations to premote, develop, and beat the nations civil breeze.The aims are to comply with international aviation standards and fulfill demands resulting in tourism promotion and national economic growth while promoting Thailand as the aviation hub of Southeast Asia. The roles and responsibilities include 1. Implementing Air sailplaning Act 2. Promoting and Developing National Civil Aviation 3. Executing peachy civil aviation 4. Making aerodromes under jurisdiction unattached for habitual 5. Coordination and cooperating with domestic and international judicature. COMPETITION ANALYSISThe key competitors of Nok Air in the Domestic air travel market are Thai Airways (FSC), Bangkok Airways (FSC), Air Asia (LCC), and Orient Thai (LCC). There are other airlines that fly domestically such(prenominal)(prenominal) as Happy Air, Solar Air, and Thai Regional Air, but they are at an infancy stage of the competitive market of this industry. It is too optimistic to say that these new airlines are not of an immediate brat to Nok air, but their presence dictates the growing need for travel to more undiscovered and unfamiliar destinations prove to be a give awaying point for some airlines and pose a potential competitive threat in the future.Thai Airways global Public society Limited (TG) Address 89 Vibha vadi Rangsit Road, Bangkok 10900, Thailand. strait 66-2-545-1000 telefax 66-2-512-2182 Website www. thaiairways. com. Established in 1960 Thai Airways International Public association Limited is Thailands national airline with both domestic and international routes including Asia, Europe, North America, Africa and South West Pacific. The airline provides transport as well as freight and mail services on all its bandaged flights. The company is a state owned enterprise which is controlled by the government and partly owned by the public7.Its key competitors in the domestic airline market are bedded as follows 1. Thai Air Asia 2. Nok Air 3. Bangkok Airways 4. Orient Thai Airways Competitive Advantages Thai Airways ranked as the low cost leadership with a huge customer base uses resources to innovate design operation which enable it to control its cost. Online growth has allowed Thai Airways to cater to a separate class of clients. Its intensive fleet of aircraft gives it an weft to find the best value-to-cost in operating aircraft with relations to airport configurations. A sthrong management team keeps the trading operations running smoothly.A well clever and managed cabin Staff that caters to meet customer satisfaction is a key advantage of the airline. Being the national carrier, Thai Airways enjoys the oversizest market share and therefore a sthrong loyal customer base8. Bangkok Airways Company Limited (PG) Address 99 Mu 14, Vibhavadirangsit Rd. , Chom Phon, Chatuchak, Bangkok 10900, Thailand. Phone 66-2- 2655678 autotype 66-2-265-5522. Website www. bangkokair. com . Established in 1968 Bangkok Airways was Thailands starting line private aviation company operated under the name Sahakol Air.Initially, the airline provided charter services using a two locomotive engine 9-seater plane catering only to multinational corporations in Thailand. With the rapid growth of tourism and business investment, air transportation became an important mearns of tr ansport. Bangkok Airways know the potential and in 1986 began its operations as the countrys primary in private-owned domestic airlines to trammel destinations such as Krabi, Korat, and Surin. Presently, it flies to 20 major routes covering nearly all major resort destinations in Thailand on with 8 international destinations.The airline has invested in building and maintaining its own privately-operated airports at Samui, Sukhothai, and Trat providing Thailand with additional hubs and fulfilling the increasing demand of air traffic volume. 9 Its key competitors in the domestic airline market are ranked as follows 1. Thai Airway 2. Thai Air Asia 3. Nok Air 4. Orient Thai Airways Competitive Advantages Bangkok Airways has great regional service including its own privately owned airports in various domestic destinations.Comparatively, it offers cheap fares on promotions with routes to common vacation destinations in Thailand. Some routes of these routes are exclusive to Bangkok Airways, such as Samui. Bangkok Airways is also renowned for its unique boutique trend in-flight service and have been awarded Best Regional skyway five square years. This is a good brand image for the airline. Thai Air Asia Company Limited (FD) Address 89/170, 19th Floor Juthamard Boulevard, Vibhawadee Road, Talad Bangkhen, Laksi, Bangkok, Thailand. Phone 662 315 9800 Fax 662 315 9801. Website www. irasia. com. Established in 2004 Thai Air Asia is a joint threaten between Malaysian LCC Air Asia and Thailands Asia Aviation. It is truly a cheap cable carrier airline with a network of domestic and regional service tthroughout Thailand and Asia. It is known to be one of the to the highest degree aggressive airlines with its marketing strategies based on online promotions to target price conscious consumers. Air Asia places a isthmus of importance on branding and its association with various and popular footballs teams in both domestic and international arena has proven to be a successful campaign.Its key competitors in the domestic airline market are ranked as follows 1. Thai Airways 2. Nok Air 3. Bangkok Airways 4. Orient Thai Airway Competitive Advantages Thai Air Asia has been able to keep a low cost in its operations based on the akin principles and model of the mother flagship Air Asia. The marketing strategies are targeted at sight customers with one of the lowest air fares to any of its legion(predicate) destinations within this region. The efficiency of its workforce and multi-skilled cater has been a benchmark for other airlines to follow.This ranges from air ring and ground rung, to the maintenance, operations and administrative staff. The single type fleet to service the customer has made it easier for Air Asia to maintain its aircraft. Online promotions and website maintenance with secure and say bother are key factors in keeping customer satisfied and loyal to the airline. Orient Thai Airways (PG) Address 18 Ratchadapisek Road, Klongto ey, Bangkok 10110, Thailand Phone 66-2-229 4260 Fax 662-229-4278-9. Website www. flyorientthai. om. Established in 1993 Based in Bangkok, Orient Thai Airlines operates plan International and Domestic flights and specializes in International charter flight around the worlds. It operates domestic flights with a fleet of Mc take upnell Douglas and Boeing 737 aircraft type with its regular destination from Bangkok to Chiang Mai, Chiang Rai, Phuket and Had Yai. Its key competitors in the domestic airline market are ranked as follows 1. Thai Airways 2. Thai Air Asia 3. Nok Air 4. Bangkok Airway 5.Competitive Advantages Orient Thai has very few competitive advantages other than the fact that it is one of the cheapest airlines to fly with and the routes that it flies to are relevant. PRODUCT OFFERING Nok Air offers air travel to various destinations around Thailand with ground support transportation Fly-and-ride to bordering countries as well as Fly-and-ferry to many seaside resorts. Most flights to major city destinations are flown by its regular Boeing 737 jets and ATR 72 turboprop aircraft.Nok-mini is a commuter airline that is a Sub-brand of Nok Air, but is owned and operated by Siam oecumenical Aviation, independent from Nok Air. It is however, a partnership and code sharing that has been beneficial to both companies where Nok-mini acts as a feeder route to stunning small towns and low traffic routes. The land transport coach dish operated by Udon Keaw Tour (Thailand) and Trans Express Co Ltd. (Laos). Hi-speed Catamaran services are operated by Lomprayah in high spirits hurrying Ferries Co. , Ltd. n Nakhon Si Thammarat and Surat Thani, while Coach and Hi-Speed Ferry Service operated by Tigerline Travel Co. ,Ltd in Trang. Nok Air not only provides air transportation and commuter service, but also a travel experience. Its affiliations with various hotels, resorts, recreation venues, and financial institutions give Nok Air its Brand Value. Memberships and Fan Clubs provide a touch-point for existing and potential customers to be in contact with promotions, offers, and activities. One of the al closely popular media used is its website that offers and informs all current and forthcoming campaigns.Members also pose information via mobile phone SMS and MMS messages as a more ad hominemized and machinate sales push marketing strategy. What Nok Air house add to its product pass is that it hindquarters change its aircraft interior to make the seats more comfortable with new configurations for better leg space. In-flight entertainment can be introduced along with a sense of Thailand by using tralatitious aromatic scent to create a pleasant environment in the cabin. Natural aromatic freshening scent has been internationally proven to have a relaxing effect.In-flight amenities can also add intrinsic value to the product where a passenger can take along the earphone (which is quite a inexpensive) that has Nok Airs logo on it as a pres ent for themselves or for their loved ones. Route Map Figure 6 Nok Air pic SWOT ANALYSIS NOK AIR A SWOT analysisis a review of strengths, weaknesses, opportunities, and threatsis a core requirement of any organization and essential to understand any industry. The volatile airline industry is no exception especially in the exceedingly competitive Low-cost carriers (LCC) industry.The objective of each airline is to maximize their strengths and opportunities while minimizing their weaknesses despite ssimilarities of the business. Strengths Internal railway line sanction to give organizational objectives 1. Higher number of distribution channels 2. Sthrong backup on financial, capital, and human resources 3. High level of employee quality available to the organization 4. Increasing geographical coverage in both domestic and international routes 5. Improving running(a) capabilities (in cost of efficiency) 6. Improving service quality 7.Brand Awareness 8. Effective in-flight sp ace management Weakness Internal origin harmful to achieve organizational objectives 1. Price on product offering 2. Bad cash flow problem arising from cost management 3. unworthy financial performance / getability 4. Low customer loyalty 5. USP (Unique sell Proposition) ssimilar for all LCC airlines 6. High degree of arguing 7. High cost of capital 8. Low experience of management team company is 8 years old 9. Low level of advertising Opportunities External origin helping to achieve organizational objectives 1.Growth rate increasing by traveler with high number of makeing rate 2. organisation support open chuck out ppolicy 3. Higher Demand 4. Convenience and unfalteringer 5. Joint promotion 6. Government supports on TAT (Tourism Authority of Thailand) Threats External origin harmful to achieve organizational objectives 1. Other governments support low cost airline in the country 2. Large number of competitors in the Market 3. Price war with promotion war 4. Long time b ooking (behavior change) Pre-booked tickets on price tiers 5. Payment Ppolicy 6. Confirmation Process 7. Fuel cost increasing . cadence to time increase in airline taxes 9. New domestic hub with slight convenient flight connections (International and Domestic) MARKETING STRATEGY Mission To be the number one low-fare, high-value budget airline in both Thailand and Asia by organism perceive by all who travel in Southeast Asia as affordable, yet offering with the best of Thai hospitality. To provide travelers with a point-to-point regional air service that is safe, reliable, convenient and true value-for-money through cost-effective operations with highest possible returns to shareholders.Develop and motivate our people to have initiative and be highly productive. Marketing Objectives Seeing potential in the international market, Nok Airs marketing objectives for first quarter of 2013 is based on a business plan to launch flights from Bangkok Don Mueang airdrome to China, as well as several other routes that are within three to four hour range from Bangkok. Having a significantly lower cost structure than competing airlines, Nok Air has aimed to compete more effectively against Thai Air Asia and other LCCs.Being Thai Airways domestic LCC subsidiary, Nok Air has been able to fill the faultfinding void in the Thai Airways portfolio for the fast growing budget end of Thailands international market. This move will enable Nok Air to capture a sizable market share within the region, especially with the high demand for travel from China. Route extensions along with increase flight frequencies will enable the company to grow in the market as well as create a level of brand conscious(predicate)ness in both the domestic and international market. In anticipation of this growth, Nok Air has procured new aircraft to its already existing fleet.Hiring only beautiful girls with nice personalities in their early 20s, budget airline Nok Air seeks to regenerate brand image & improve service efficiency. With the current cabin crew age averaging only 26 years old, Nok Air is keeping with other airlines trend of recruiting fresh, young and good-looking faces to do the job. The objective is to cash in on the energy, enthusiasm and deducation that are normally associated with youth in order to drive service efficiency and project a better impression on passenger (Bangkok Post 8/9/2011).The impression is a dynamic lifestyle image that meets passengers expectations of being served by fresh, friendly, efficient staff. Financial Objectives Since its launch with an initial capital of THB500 million, Nok Air has not required any additional capital since its launch in 2004. Currently, it has approximately THB1. 5 billion in the bank. The airline has been profitable every year except for 2007 and 2008 massive fuel price hikes and falling domestic demand. However, the pursuit year, it bounced back into surplus as conditions improved.In 2010, it turned a net profit of more than THB600 million and over the first three quarters of 2011 a profit of THB230 million despite continuing tribulations in the oil markets. The destroy floods that closed its home base at Don Mueang Airport in the last quarter of 2011 did have an impact on Nok Air, but it managed to reach a profit of THB400 million and projected revenue of THB6 billion, carrying about 4 million passengers by the years end. Target Market There are various variables that a market research can assist in defining the rightly market segment or more likely a possible target customer of Nok Air.A classification system of rules of Demographic, Geographic, Psychographic, and Bbehavioral will enable the airline to narrow the scope and focus its resources to its target market fit their needs. DEMOGRAPHIC division Demographic defines the population into groups with common variables, and targeting each of these groups to enhance the airlines performance. This can be throw out divided into Gender - Nok Air has focused its marketing to both genders since it is difficult to separate which one gender represent a larger share of the companys target market and hence both should be considered equally.Income Level- In developing price strategies for fares, Nok Air has to keep to its strategy of being a LCC (Low-cost carrier). This would serve best for those in the SES of C1, C2 and D classification of Social class. A strategic move to improve and provide convenient flight measure and routes to SES B could result in an increase of market share from FSC in terms of value-for-money. The classifications are based on the occupation of the head of the household. stratum Social Class Chief Income Earners Occupation A Upper midway Higher Managerial, Administrative Or Professional B Middle intermediate Managerial, Administrative Or Professional C1 Lower Middle Supervisory Or Clerical And Junior Managerial, Administrative Or Professional C2 Skilled workings Skilled manual Workers D Working Semi And Unskilled Manual Workers E Those At The Lowest Levels Of Casual Or Lowest send Workers, Pensioners And Others Who Depend On The Welfare Subsistence State For Their Income Age- Based on the terms and conditions indicated for the purchase of an air ticket, the permissible age for passengers travelling chaperoned on a domestic flight on Nok air must be 16 years of age. It can be assumed that the age range of 15-55 would be best target market to focus the airlines promotional campaign on. Occupation- Nok Airs passengers would generally be individuals who are professionals, government officials, businessmen, sstudents, and employees of a firm. However, the purpose of travel does not have a at once relationship with the occupation of these passengers.They may be travelling on a vacation, visiting relatives, making a pilgrimage, and other personal reasons rather than on a business or government reasons. Flight schedules and destinations would be the reason these p assengers would seek importance in opting the airline that they travel on. With Nok Air frequence and multi-destinations available, passengers have the options to select the Marital Status- The concept that Nok Air can market in this category is of the Honeymooning couples, or just married as well as for those who are married and do wish to enjoy a romantic getaway. As for those who are single, Nok Air can focus on adventure or functional aspects. The strategies would be to seek a market in eco-tourism, and sight-seeing.However, whether single or married, the objective is to create a positive perception of Nok Air for all segments as this factor is linked to the psychological aspects and income status of an individual. GEOGRAPHIC SEGMENTATION Viewing from its extensive network of 20 destinations available on Nok Airs routes, it has find to a population where other airlines in the same category do not. Availability and frequency to destinations allows Nok Air to hold a competitive advantage over other airlines. Since Nok Air is involved in the business of transporting passengers from one geographical location to another, this segmentation plays a vital role in its marketing strategies. riders dependency and demand for Nok Airs service is critical to its development. Its success in strategically locating its hubs t various domestic destinations in Thailand has motivated Nok Air to expand to other areas in Asia. PSYCHOGRAPHIC SEGMENTATION Targeting a certain group within a population base on their lifestyle, activities and interest is the focus of this segment. The importance is in understanding consumer acquire behavior by referring to their AIO (Activities, interest, and opinion). Nok Airs website is one of the medium use in gathering views and information to analyze consumer behaviors of its consumers. Some factors that help define the population on psychographic segmentation where Nok Air has emphasized their resources on are Lifestyle The Check-in of You r Choice program allows passengers a check in knead that best fits their lifestyle.The options available are Airport Check-in Passengers can check-in their baggage and get their embarkation pass at the airport counters. Telephone Check-in Passengers can call in on a hotline 1318 and collect their boarding pass at the counter. This allows them to arrive just 30 minutes before fadeure therefore suitable for those who are touch on time. However, the drawback is that they cannot check-in their baggage. Web Check-in A personalized method of allowing the passengers who are Nok Fan Club members to log in and select their alternative of seats and options offered on the airlines website. boarding pass can be collected at the airlines counter in the airportMobile Check-in Ssimilar to the online format where the passenger can use an application on their mobile phone to select a preferred seat and check-in. Boarding pass can be collected at the airport. Check and support Is a unique form at only available at Chiang Mai. The process allows you to collect your boarding pass at Chiang Mai Central Airport Plaza, 1 hour (2 hours maximum) prior to the departure. Nok Air will provide transfer service between Chiang Mai Central Airport Plaza and Chiang Mai International Airport 30 minutes prior to the departure for boarding. Activities interests and opinions (AIO) A subset of lifestyle, activities interests and opinions also affect consumer buy behavior.Nok Air Fan Club Privilege is a holistic approach to understand the consumers AIO by offering a link to Nok alliance through social networking sites such as Facebook and Twitter, as well as on mobile link via Apple Apps and Android. Here loyal customers can be involved in the activities and share common interest and opinions in the community. Values attitudes and lifestyle Another concept which is a subset of the lifestyle segment is values attitudes and lifestyles classifying individual into the VALS framework. Nok Air ca n understand individual passenger profile by determining what these individuals do with the resources they had at their disposal as well as the amount of primary innovation they could accept or create.Information collected by research on passengers can help the airline design and implement new strategies in the future. BEHAVIORAL SEGMENTATION Bbehavioral segmentation divides a population based on their behavior, the way the population react to, use or know of a product. Consumers decision making are base on factors they take into consideration before purchasing a ticket, thus these decisions are affected by their behaviors. The reasons for purchasing a ticket can be buying for occasions such as travelling during Songkran, and New Years holidays. Another reason can be for benefit sought such as travelling for the purpose of commuting from one location to another.The selection may be based on the marketing mix being offered or a hedonic one. obedience to the Nok Air brand is based o n the airlines special service to the customers who frequently travel on the airline is a way to retain existing customers as well as attract new customers by word of mouth from existing and loyal customers. Usage rate is also another reason of purchase intention. For those individuals who are required to travel frequently on companys business or government official business will need a reliable airline that can accommodate to their needs and offer a fare that will save them cost and time. This is more in line with wholesale purchasing and diverging efforts to meet customers demand.In line with this, Nok Air offers a Corporate customer service whereby the benefits includes fixed fares, change fee waived for change in name or date, no service fees, payment after booking is made, and a dedicated corporate hotline. The objective is to gain a larger market share from a targeted market that comprises of both normal LCC travelers, whether from existing users of the airlines or from compet itive airlines, and potential from alternative transportation modes such as trains, buses, and vans that are common mearns form commuting to other separate of Thailand. Sales and marketing strategies especially relating to price offers are key factors in capturing additional passengers. POSITIONINGIn the term positioning for Nok Air, it refers to the customers perception of a service in relation to its competitors in the domestic airline market. Current market position of Nok Air is that it is a no frills airline providing air transportation of passenger to various destinations within Thailand. In this respect the terms of No-frills is largely interpreted as an airline offers low fares but eliminate all non essential services, such as complimentary drinks snacks, in flight entertainment systems, and different class of seating. They operate by using limited or ssimilar types of aircrafts to keep maintenance low and fly out of remote airports to cut overheads.The interior of these a ircrafts are fitted with minimum comfort and generally carry advertising inside the cabin to generate revenues. Additional fees are imposed for luggage and other amenities. In order to understand passengers perception of Nok Air in relation to its competitors, a perceptual mapping of perceive value analysis between service quality and price relationship is modeled. There are three major competitors of Nok Air, videlicet Thai Airways, Thai Air Asia, and Orient Thai Airways. Thai Airways Service quality is superior to that of Nok Air because of its status of being a national carrier of Thailand and is actually a FSC (Full service carrier) airline. However, they are non-competitive in terms of set.Thai Air Asia There are some distinctive advantage in service offered to passengers by Thai Air Asia in terms of optimizing call centers, touch points, and efficient online websites. The influence from the Air Asia core brand adds on to value in terms of human resource management and oper ational management. However, the pricing strategies are unpredictable and ambiguous at times. Orient Thai The airlines safety and service records are inferior among all. Despite their efforts to improve their image, the airline struggles to maintain its operations and have access to limited routes. However, their commitment to improvement has been a key factor sustaining its presence in the market coupled with one of the lowest airfares on domestic routes offered to major destinations.Nok Airs direct competitors are faced with the same elements in keeping cost low and generate enough profit by management and planning strategies. By analyzing its value chain, Nok Air can increase its margins on fares by managing its primary and support activities. pic Support Activities Firm root word Focus on improving Accounting, Finance, Legal, and customary Management within the firm. mankind Resource Management Recruitment, Pilot Training, and Cabin Crew Training. Technology advance E-co mmerce ticketing sites having more international languages, In-flight system operating service with infomercials and music. An improvement at the airport ground base with touch points flight scheduling system to inform passengers of the flights departures and arrival. Procurement of Resources Aircraft acquisition that would best serve the clients needs while maintaining operational cost. Primary Activities Inbound logistics This involves aircraft scheduling to depart and arrive at prime time where passengers can conveniently perfect their stay at a destination. Seats on any particular(prenominal) flight are perishable resource. Yield management allows the airline to sell its seats on flight to consumers optimizing it to a full load dexterity on all flights. Route selection is another factor that will allow Nok Air to capitalize on a first proposer advantage and become the market leader in that geographical area. operations The ground staff at various hubs are vital to Nok Airs o perations.Aircraft operations, ticketing, gate operations, and baggage handling efficiencies can give the airline a competitive advantage in turning the aircraft around on its next scheduled flight. One aspect observed is the dischargeation of passengers, most of who are generally in a hurry to get off the flight once the plane stops. Managing the planes exit doors to disembark passengers are some ways to gain valuable customer satisfaction. duration onboard, the flight attendants positive attitude and behavior can add value to the brand as they are brand ambassadors of the airline. outbound Logistics Flight connection to destination via its network of alliances such as Nok mini and other modes of transport such as land and sea, can add and impression in service value.Also an effective baggage system of load and off-loading displays effectiveness in operations of the airline. Marketing and Sales Promotion and advertising are key factors in push strategies to motivate prospects t o the airline. Nok Airs campaigns involve mobile marketing, online marketing, billboards, print media advertising as well as Television Advertising. These multi-channels of media usage allow Nok Air to reach a large number of audiences in order to capture attention to its promotions on offer and leave an impression that salience to the mind. Service Extended service beyond arrival at the airport hub of Nok Air such as affiliations with car rentals and hotel accommodations.The airline can work in conjunction with these firms on change case basis, whereby car rental rates and hotel room rates discounts offered for passengers can be offset by airfares discounts for executives and staff of these affiliated firms. Credits can be accumulated on points system and exchange for transactions such as transportation and stay-over for air crew and airline staff. A perceptual mapping illustrates the position of Nok Air in comparison to its competitors. pic MARKETING intermixture PRODUCT / SERVIC E Nok Air provides air transportation services to 20 domestic destinations in Thailand. The main airport hub is at Don Mueang Bangkok Airport. Its destinations are Bangkok (Don Mueang) Chiang Mai, Chiang Rai, Hat Yai, Loei *, Mae rum *,Nakhon Phanom, Nakhon Si Thammarat, Nan *, Phitsanulok, Phrae *, Phuket, Roi Et *, Sakon Nakhon, Surat Thani, Trang, Ubon Ratchathani, and Udon Thani Chiang Mai Phitsanulok, Mae Hong Son, Udon Thani**, and Mae Sot* * Operated with aircraft chartered from Siam General Aviation (Nok Mini) ** Code shared flights operated by Siam General Aviation (Nok Mini) Tangible Clues since service is intangible and difficult to sell, marketers can at best convey reassurance and quality to its customers. For Nok Air, transportation is its core product. The service it provides that serves as tangible clues are the airlines sensible facilities and the demeanor of its staff.To distinguish itself from its competitors, the airline can provided several tangible clues such as aliment/beverage, magazines, staff uniforms, logos, color and design of the aircraft, and flight bookings. Service there are two types of services involved in Nok Airs operations being ground services and in-flight services. Convenient airport with car lay facilities, transport to the airport, efficient baggage checking, and efficient service at engagement counters are some of the factors that defines on-the-ground services. These attributes are primary touch points where passengers initial perception of the airlines are conceived and relates back to the brand equity of Nok Air. erstwhile inside the aircraft, the airhostesses are the brand ambassadors of the airline.Nok Airs well trained flight attendants have the responsibility of providing polite, warm and courteous service to its passengers. This pulse is transitioned to the representatives at the baggage counter, and Nok Airs passenger assistance counters as an augmented product/service to develop customer loyalty towards the brand. price Based on the SES of the passengers, pricing plays a vital role of Nok Airs marketing strategy, since the airline bases its image by classification of being a Low-cost carrier and is judged whether the product/service offered is fairly priced. Thai Airways band image alone is sufficient to justify its premium pricing base on seating class on the air fares.Whereas, other airlines like Thai Air Asia, Orient Thai, and Nok Air all identify themselves as Cheap-value pricing or even Low-cost pricing, but rather project themselves as Value-for-money pricing airlines. The intention of value for money pricing is to charge an average price for the fare and emphasize excellent value for money on the fare. This establishes a reputation and enables the airline to achieve good levels of profit margin. However, during a certain period, the intrinsic concept is to undercut the competition and prices are used as a tool to attract passengers to purchase based on seasons. The current world economic crisis and the recent flooding in 2011 have had an impact on the local economy.All airlines are competing to set prices at competitively low levels to attract customers. Nok Airs strategies are in line with the basic pricing models of LCC. These cost cutting measures comprises of High aircraft utilization Keep aircraft flying commercially as much as possible and at the fastest turnaround time as possible. Airline makes money when its aircraft is flying and not parked on the ground. No frills both and all luxury items and services are considered frills and that the airlines by rendering a fee to the airline, the passenger will only then have access to these items. They range from food and beverage, seating, paperless ticketing, non-refundable ppolicy, and no loyalty program.Streamline operations includes limited types of aircraft used so that there is specialization in the pilot, crew, and ground operations. Single class seating on all flights and Standard operating procedures are ensured to create homogeneity of service. Most of the prices offered by Nok Air are based on the pricing tiers structure. This structure is a time value relationship for seats. The first few tiers are target to value conscious passengers looking for extremely cheap tickets by booking early. The mid-tier passengers are those who book moderately early but pay a higher price and the top tiers are the passengers who pay the most because they purchase the ticket at the last minute.PLACE There are four method of distributing airline tickets Consolidation sales of ticket at airline counters Tour Operators/Travel Agents customers approach their travel agents to book tickets for them. The tour operators take a commission from the airline. Affiliated with companies Airlines gets affiliated with companies on corporate fares and provides a discount on the bulk buying orient Sales through home lease systems which are telephone, fax, emails and online booking. LCC A irlines keep their distribution system simple as possible and this is possible with the use of internet technology which can be remotely operated even at the most deprived of locations.PROMOTIONAL MIX Since consumers have become aware of the competition among LCCs, they hollo and appreciate the vvariety of marketing efforts that are in place to entice them to use the specific airlines service. In the times of credit crunches, the airlines seek ways to be most efficient in saving cost while eliciting the most from the IMC programs they have to optimize outcomes. There are numerous ways that Nok Air can reach these consumers, and some of the most common ways are Advertising Creative advertising campaigns are the most common way to get the message and promotions out to a large audience. Telecast and print media are important channels for promoting the air business.Since advertising is expensive, the marketer needs to be mindful of the timing and opportunities when it arrives. Advert ing during peak seasons can attract potential client to switch to Nok Air, and the airline have to select appropriate theme for the advertisement for example beach getaway destinations for the summer season. Publicity This process of persuasive communication where the public relations ships officer provide the media people with information of the airlines promotion and set up a press conference, dinners, meetings, and get together, to gain wide open up telecasting through news and promotional channels. The objective is to get well-situated news of the airline.Sales promotion By proving additional incentives to travel agents and tour operators who are the front line of Nok Airs sales promotional effort, the airlines campaigns are focused and on target with the right segment. This direct communication allows the consumer to interact with the premoters and get valuable information about the offers to these individuals to post in decision making process. The air ticketing counter is another channel where the airlines own personal can motivate the consumer to hen-peck up on the offer before purchase. The value added promotion can be in the form of alliance with Nok Mini, Hotels, Banks, Credit Card Firms, and Car Rentals. Word of Mouth Satisfied customers are the best premoters of the brand. They act as opinion leaders and inform the merits of the airlines to their peers and associates.Nok Airs best and most reliable promotional strategy would be to keep customers loyal to the airline and should design ways to reward them for their referrals. PEOPLE In this industry, the airline staff comes in contact with the customers in the course of production and consumption of service. The duties of the kind Resource department of Nok Air to select, provide training, and motivate its employees since these employees are ambassadors of the airline. Their initiative, competence, responsiveness, problem solving ability, caring attitude, and goodwill are the impressions that create customer satisfaction to the airline. The air stewards are the people who are in contact with the customers.Their animal(prenominal) presence reflects the airline image to the customers although it varies in degrees and the nature of service. The passengers expect a pleasant and polite service from these individuals who are in high contact with them and therefore their appearance plays a tangible dimension of quality. The air-crew such as the pilots possesses technical attributes in operating the aircraft and safe journey. Another ancillary service are the travel agents, tour operators, and sales counter personnel who help create the service of exchange but not in direct part of the service. There are without a doubt other employees and staff of the airline that makes the operation and management efficient and effective. It is essential to have the right people on the right job.Inspiration and motivation for these employees are critical for the organization to operate i n this highly competitive environment and they their loyalty to Nok Air is an asset to the airline. PROCESS Is the flow of service from the decision makers to the ultimate buyers. This is the affair of channels, front line staff, travel agency offices, and tour operators. The process begins from the reticence of seats by mearns available to consumers such as telephone, internet, or personal booking till the minute they depart the airport. In some instance, the post-purchase service is involved. The process starts with information in the reservation system and managed via a large network of computers that allows the reservation to be instantaneously monitored and confirmed as required in the system.The terms of the booking is also indicated so that the passengers are aware of the limitations and conditions of the ticket as well as options and benefits iincluded in the purchase such as exemptions of cancellation fee and changes in seat reserved. Facilities at the airport such as ch eck-in counters, flight information, and baggage handling helps to contribute perceived value in quality serviced that transfers to customer satisfaction. While in the aircraft, satisfying meals and entertainment along with amenities distributed are part of the total process in delivering quality service and increasing brand equity. PHYSICAL state Is the point where service is delivered and interactions occur.The aircraft itself as well as the in-flight food are physical evidence of the airline service. This is experienced in the ways the airline configures the seats so that passengers can experience a comfortable flight although the category of the airline is that of LCC. While on the ground, booking office, ticketing counters and even the aircraft when parked, can create a good impression as a physical evidence of Nok Air. The overall designing of the booking office, the check-in counter, the domestic lounge, and the aircraft exterior appearance is used to trigger the customers experience of Nok Air. If the experience is a favorable one, the brand benefits by association to these physical environment.Don Mueang Airport is the base airport of Nok Air despite the fact that its Bangkoks secondary airport. However, Don Mueang airport is cheaper than the main airport at Suwarnabhumi and are generally less congested therefore making the turnaround time lots shorter. Flight transfer service is not offered at Don Mueang and Nok Air can only offer advice to passengers seeking to board a connecting flight to board a shuttle bus, catch a taxi, or have someone pick them and drop off at Suwarnabhumi International Airport. Nok Air also has acquired an area in Don Mueang Airport for a playground for Kids as a place to entertain them before boarding the aircraft.