This paper presents a comprehensive marketing communications plan for Bowling Asia Airline, a proposed low-cost carrier entering the Thai aviation market. The paper begins with a situation analysis covering Thailand's economic, legal, and social environment, then examines two key competitors — Air Asia and Nok Air — through segmentation, targeting, positioning, and communications frameworks. It then outlines Bowling Asia Airline's marketing and communications objectives, defines primary and secondary target audiences, and recommends an integrated communications strategy combining above-the-line, below-the-line, and new media advertising. The paper concludes with a proposed international launch campaign targeting the UK market.
The airline industry is one of the business sectors most significantly affected by the global financial crisis. As a consequence, the purchasing and consumption behavior of customers has shifted in line with the income reductions experienced by many employees. Consumers tend to orient toward cheaper products and services, and airline services are no exception.
This situation favors established airline companies that have the financial power to support price reductions and other promotions designed to attract customers, as well as low-cost airlines seeking to enter the market. The economic situation of consumers in Thailand justifies the need for a new low-cost airline company.
Thailand's economy benefits from a well-developed infrastructure, free-enterprise characteristics, pro-investment policies, and intensified export activity (CIA, 2010). The country has experienced continuous economic growth following the Asian financial crisis, though its export-reliant economy was significantly affected by the more recent global financial crisis (TDS, 2009). In order to counteract the effects of the crisis, the government intends to stimulate investment in the private sector.
Thailand's legal system is based on civil law and common law. The executive branch is represented by the chief of state, the head of government, and the cabinet. The legislative branch is represented by the bicameral National Assembly, consisting of the Senate and the House of Representatives. The judicial branch is represented by the Constitutional Court, the Supreme Court of Justice, and the Supreme Administrative Court.
The country's population reaches approximately 67,089,500, with an urban population comprising 33% of the total. The demographic characteristics of Thailand's population allow for continued economic development.
Bowling Asia Airline is a new low-cost airline company designed to serve the needs of customers who cannot afford to spend significant sums on regular flights. The company addresses customer segments with lower incomes who need to fly frequently, typically for work-related purposes.
The company is organized in a flexible structure capable of adapting to rapid changes driven by the external environment. In its early stages, the company will operate with the minimum number of employees necessary in order to reduce investment costs and the financial capital required from its owners.
The market entry strategy that Bowling Asia Airline intends to implement in the Thai market is based on providing low-cost pricing — the company's primary competitive advantage — along with a series of promotional offers for customers who fly regularly to certain destinations.
The most important challenges currently affecting the low-cost airline market are the recession and fuel price escalation. To counteract these factors, major companies in the industry are buying more aircraft, expanding services, and reducing prices (The Times, 2008). Specialists in the field consider that growth in this industry is not sustainable in its current form, and that airline companies must adapt their business models to remain profitable.
However, the airline market presents different characteristics in different regions. Although developed countries offer fewer opportunities for new entrants, emerging markets such as those in Asia and Africa provide real growth possibilities for low-cost airline companies (Ford, 2005).
Air Asia is the company's main competitor and represents the pioneer of low-cost airlines in Asia (The New York Times, 2007). Established in 1993, Air Asia provides both domestic and international flights. Its subsidiaries include Thai Air Asia, Indonesia Air Asia, VietJet Air Asia, and Air Asia RedTix. The company's fleet consists of 103 planes serving 68 destinations. Air Asia's associate companies include Air Asia X, Tune Hotels, and Tune Money.
Given Air Asia's expansion trajectory, the company must fill its increased capacity during a period of reduced consumer spending and heightened competition. The customer segments Air Asia addresses include: non-business passengers for short and long routes, price-conscious business passengers for short and long routes, and quality-conscious business passengers for short and long routes.
Air Asia attracts customers by exploiting product differentiation, offering lower costs compared to competitors, increasing the number of seats per aircraft, reducing maintenance fees, opening new routes, and providing a broad range of regional and international flights.
Air Asia positions itself as the leader in the low-cost airline industry in Asia, a claim supported by its status as the first low-cost carrier in the region. This first-mover advantage enables the company to initiate moves and strategies that competitors are compelled to follow. As an established brand, Air Asia is able to set the rules in this industry sector, determine prevailing price levels, and define the most effective strategies for the market.
Air Asia's communications strategy centers on its website, which provides comprehensive information about products and services, call center contact details, and sales office information where customers and business partners can direct inquiries. The company has also created a customer magazine and allows passengers to purchase online travel packages directly through the website.
"Nok Air's market position and communications approach"
Nok Air focuses on the mid-market segment of the industry. The company's fares are higher than those of other low-cost carriers, which indicates that the company is not primarily targeting price-sensitive customers. Nok Air orients toward non-business passengers with medium incomes on short and long routes, business passengers on short and long routes, and quality-sensitive passengers on short and long routes.
Nok Air seeks to grow its customer base by offering high-quality products and services. However, its fares are higher than those of the competition, which limits its ability to attract price-sensitive customer segments and thereby constrains the overall size of its customer base.
Given Air Asia's market leadership, Nok Air occupies a follower position in the low-cost airline industry. The company's limited capacity prevents it from improving its market standing significantly. In order to challenge for a leading position, Nok Air would need to invest substantially in expanding its operations.
Nok Air has developed and implemented an innovative communications strategy to attract more customers. The company sells tickets through cash machines, mobile phone networks, convenience stores, and movie rental shops (Sobie, 2006). It has also organized a series of customer events at which attendees can learn about the company's products and services and participate in games and other activities.
Bowling Asia Airline intends to enter the low-cost airline market in Thailand. The characteristics of this market create financial entry barriers — the company requires substantial capital to organize its activity — and the financial crisis does not provide ideal conditions for new entrants.
Due to reduced incomes, some customers who previously flew regularly with low-cost carriers have shifted to cheaper transportation alternatives. Several low-cost airlines in Asia have reported significant declines in passenger numbers as a result.
However, this same environment can prove profitable for some new entrants. Customers who previously flew with full-service carriers are increasingly turning to low-cost alternatives because they can no longer afford premium prices. This trend applies particularly to business passengers.
Bowling Asia Airline's objectives include: increasing the number of passengers by 15% within six months, increasing the volume of sales by 10% within six months, and reaching a 12% market share.
Estimating revenue precisely is difficult because the fares established initially may need to be adjusted in response to public demand. If the company does not reach its sales targets, it may need to reduce certain prices or offer promotional fares to attract additional customers.
The primary objective of the communications plan is to inform as many customers as possible about Bowling Asia Airline's services and to increase the company's brand awareness in Thailand and in the international markets it intends to serve.
The definition of public relations can be summarized as doing something great and then communicating it effectively. Bowling Asia Airline must develop a products and pricing strategy that meets the needs of its targeted customer segments, and then communicate this offering clearly to potential customers.
It is important that the communications plan reaches the exact customer segments the company intends to target; otherwise, resources will be wasted. To reduce implementation costs, the company should select communications channels that are most appropriate for each specific customer segment. For instance, business passengers who do not watch commercial television should be reached through business magazines rather than TV advertising.
To develop an efficient communications plan, it is also recommended that the company engage the services of specialized marketing agencies. Such agencies are able to conduct thorough market research to identify the characteristics of the market and the targeted customer segments. They also possess the expertise to select the most suitable marketing channels and tools for the relevant business context, and their industry connections allow them to negotiate the best rates for marketing services — enabling Bowling Asia Airline to reduce its communications costs overall.
The main customer segment Bowling Asia Airline intends to address is young individuals, male and female, aged 20–35, who are first-jobbers or students. Their monthly income ranges from 300–600 baht to 15,000–30,000 baht. They hold predominantly white-collar jobs and have at least a high school diploma.
Given the economic profile of this segment, the company must recognize that these customers are price-sensitive and primarily oriented toward promotions and discounted pricing. The rationale for targeting this challenging segment lies in the long-term potential it offers. If the company succeeds in attracting these customers through well-designed incentives, they can become loyal customers over an extended period. As they develop their careers and financial standing over time, Bowling Asia Airline can benefit from this growth and build a solid, enduring customer base.
The secondary customer segment consists of older individuals, male or female, aged 50–65. These customers are also price-sensitive; many are retired and their incomes do not allow for expensive travel packages. The company intends to provide travel packages that meet the needs of this segment.
Some members of this group use airlines primarily for vacation travel. The company should identify the preferred destinations of these customers and make efforts to serve those routes. Promotional campaigns during peak travel periods would help the company attract and retain customers in this segment, gain market share, and grow its passenger numbers.
Push strategies are designed to promote products and services to wholesalers and retailers, pushing them through the distribution channel. Given the nature of Bowling Asia Airline's business, this type of strategy is not applicable.
The pull strategy ensures direct communication with customers, making it the most appropriate approach for achieving the company's communications objectives. The company should develop and implement an aggressive advertising campaign that reaches customers through multiple marketing channels. The messaging should be differentiated according to each customer segment, as these groups have different characteristics, respond to different motivators, and are best reached through different channels.
The profile strategy supports the development and implementation of the company's broader corporate promotional objectives. This means Bowling Asia Airline should initiate and maintain a continuous dialogue with each of its target customer segments.
"Above-the-line, below-the-line, and digital channels"
"Summary of strategy and competitive recommendations"
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