1 Phon Navuth Dheeraj Mudgil Rossi Pan Paranee Pihakaendr Nguyen Thanh Tu Nguyen Vo A Vy Contents A Executive Summary Situation Analysis Thailand Environment Analysis Phuket Environment Analysis B Marketing Plan Rationale Phuket Competitors Analysis Phuket Potential Market Analysis SWOT Analysis Selected Marketing Strategy Market Segmentation, Target, Position Approaches Marketing Mix (8 P’s) Activities Plan C Implementation Plan Marketing Budget Control Procedures Evaluation Procedures Mission and Objective Marketing strategies for Phuket island to increase the tourists after tsunami in year 2004 Promote Phuket tourism after the tsunami Develop Phuket sustainable tourism growth Increase number of current target markets and potential markets to 15% Tourism Situation Number of International Tourists arrival to Thailand 1,11% decrease from the previous year because of the tsunami and disturbance in provinces in Southern Thailand Number of Tourist (Million) 12.00 11.65 11.52 2004 2005 11.50 11.00 10.80 10.50 10.00 10.00 9.50 9.00 2002 2003 Number of Tourist (Million) Table 1: Number of International Tourists arrival to Thailand Year Number of Tourist (Million) Percentage of change (%) 2002 10.80 - 2003 10.00 -7.40741 2004 11.65 16.5 2005 11.52 -1.11588 Source: Thailand Tourism Authority Americans and Oceania's continuingly visit Thailand after the tsunami because they are cultural tourists and because of big sale promotion Thailand Tourism Revenue After tsunami happened, the numbers of tourists immediately decrease International arrivals strongly increase from 2003 to 2004, 450,000.00 384,359.77 400,000.00 358,000.00 350,000.00 323,484.00 309,269.00 334716.79 300,000.00 317224.62 299,047.00 289986.81 250,000.00 200,000.00 223732.14 235337.15 150,000.00 100,000.00 50,000.00 0.00 2001 2002 2003 International Tourist Arrivals 2004 2005 Domestic trip increase from 2002 to 2005 although having crisis on December 2004 Domestic Tourist That why the revenue from International tourism 2005 are lower than 2004 Table 2: International Tourism Arrival to Thailand by East Asia Countries Unit: Thousand Tourists Country of 2002 2003 Number ASEAN 176,180 18.73 175,902 17.66 269,585 22.04 200,518 23.39 727 0.08 851 0.09 978 0.08 888 0.10 Cambodia 5,344 0.57 7,441 0.75 7,767 0.63 8,089 0.94 Indonesia 11,709 1.24 11,589 1.16 16,870 1.38 11,605 1.35 7,320 0.78 8,020 0.81 9,174 0.75 12,072 1.41 Malaysia 88,751 9.44 81,070 8.14 148,685 12.15 91,449 10.67 Myanmar 3,967 0.42 3,413 0.34 4,300 0.35 4,681 0.55 Philippines 9,613 1.02 10,749 1.08 11,810 0.97 12,417 1.45 Singapore 41,496 4.41 44,069 4.42 57,134 4.67 48,521 5.66 7,253 0.77 8,700 0.87 12,867 1.05 10,796 1.26 China 71,628 7.61 76,398 7.67 107,786 8.81 29,087 3.39 Hong Kong 25,429 2.70 37,869 3.80 74,088 6.06 16,299 1.90 Japan 96,345 10.24 107,362 10.78 111,389 9.11 98,071 11.44 Korea 75,506 8.03 94,612 9.50 102,299 8.36 52,732 6.15 Taiwan 57,720 6.14 46,640 4.68 60,311 4.93 20,374 2.38 Others 874 0.09 979 0.10 1,442 0.12 781 0.09 503,682 54 539,762 54.18 726,900 59.42 417,862 48.74 Laos Vietnam Total Number % Share Number 2005 Residence Brunei % Share 2004 % Share Number % Share Europe Tourists arrival to Thailand Russia, East Europe and Italy were in bad situation while they are the main markets Number of Europe tourists to Thailand 400000 328,959 279,625 300000 298,260 273,115 200000 100000 2002 2003 2004 Year 2005 Bird flu epidemic also stressed the unsecured image of this region Phuket Destination Number of Tourists arrived to Phuket 4000000 2607375 2520651 3270459 3000000 2000000 1146851 1000000 2002 2003 2004 2005 Year Year Year Number of tourists arrived to Phuket Number of Tourists Arrived to Phuket Percentage Change 2002 2,607,375 2003 2,520,651 -3.44054 2004 3,270,459 22.92669 2005 1,146,851 -185.169 2005, the number of tourist decreased rapidly from 3,270,459 thousand on 2004 to 1,146,851 thousand on 2005, the growth is 185.17% Phuket Environmental Analysis The beach is fully discovered better than before Installed the regional tsunami warning system to guarantee Phuket’s safety The beach is white clean with crystal clear water; new species of fish are found because of the big wave Hotels and attractions are fully revived Phuket Competitors Analysis Direct domestic competitors Surat Thani Province (Samui Island, Pha-ngan Island and Tao Island) Krabi Province (Lanta Island, Phi Phi Islands) Prachuap Khiri Khan Province (Hua-Hin and Cha-am) Satun Province (Tarutao Island) Tarutao Island Hua-Hin Samui Island STP Analysis for Phuket Island MARKET SEGMENTATION 300,000 Table 7: The Main Market of Phuket Destination Unit: Thousand Tourists Nationality 2002 2003 2004 2005 60,527 58,324 103,766 42,586 165,137 143,062 206,381 44,662 264,877 211,297 232,680 27,590 261,387 227,200 210,950 77,052 149,021 176,697 201,316 68,844 192,876 195,392 242,704 98,713 250,000 Singapore 200,000 150,000 Japan 100,000 Taiwan 50,000 - Germany Year Sweden Singapore Japan Taiwan Germany Sweden U.K U.K Source: Thailand Tourism Authority Although 2005, the level strongly decrease of tourists to Phuket, but it is still importance role for Phuket getting profit from hospitality and travel industry STP Analysis for Phuket Island TARGET MARKETS Look for the best service quality with reasonable prices Age from 35 years old From upper-middle class Newly married (honeymoon) People can afford this kind of service and they are willing to pay for it Newly married couples seek for a romantic place for them to enjoy and memorize their once in a lifetime experience Older married couples Older married couples are most satisfied with financial position and money saved (Empty Nest I) They are interested in travel, recreation, and self-education Meeting, Incentives, Conference, Exhibition (MICE) Market The market will also be expanded to MICE market, which is becoming popular and is another way to promote Phuket tourism STP Analysis for Phuket Island POSITION APPROACHES The Island for honeymooners One of the beautiful beaches in the world for premium customers with reasonable price Island for family relaxation (various activities offered for example scuba diving, sightseeing, etc) Marketing Mix (8 P’s) Product ™ Phuket Island and its spectacular attractions ™ Accommodation ™ Festivals and Activities Marketing Mix (8 P’s) Price Accommodation Luxury hotels and spa Hotels below stars Home stay and bungalow 30 USD – 250 USD Convenient transportation system for inbound and outbound tourists Prices are varied depending on modes of transport and destinations Marketing Mix (8 P’s) Place Getting to Phuket from abroad Getting around Phuket By Air: there are several direct flights between Phuket and international destinations, e.g Kuala Lumpur, Hong Kong, Penang, Singapore, and Sydney Transportation to and from the airport: the tourism can go by bus, by car, by rail, by ferry Car rental service, Motorcycle taxi, Songthaeo and Tuk-Tuk Getting to nearby provinces By bus, Taxi & vans, By air Marketing Mix (8 P’s) Promotion Advertising Personal Selling Conducted by mass media, magazine, and internet i.e Phuket.Net,including travel information, accommodation, tours and activities, dining, shopping, real estate, classified ads and business directory Travel agency representatives will come and recommend the tour packages or accommodations for interested tourists Public Relation The most effective means of promotion to sweep away the bad image about Phuket after the tsunami Sales Promotion Regularly conducted by private sectors to stimulate the tourism in Phuket especially in low season The government gives the support by doing the public relation to assure the safeness in travelling in Phuket Direct Marketing Provide fully informative websites about Phuket tourism where the tourists can interact with Phuket’s tourism agents and accommodations as well Marketing Mix (8 P’s) Packaging According to the segmentation, packages are created to satisfy the target customers Programming Program are also developed and combined to reach customers’ expectation Partnership People Cooperation with all parties both domestic and international to join too overcome obstacles and strengthens Phuket tourism People, the service providers play the pivotal role No amount of slick advertising and catchy promotions can compensate for below-average service Key Success Factors Safeness Attractions and activities Warm hospitality and service Facility and infrastructure Price Well installed and operated tsunami warning system 24 hours tourist-police available Reliable weather forecast report Nice and clean and maintain its natural Offer varieties of activities for various customers Tourist-friendly environment English speaking local staff to give hand to tourists Provide the best quality of service to customers Modern and convenient facilities for tourists Easy understanding signate Good transportation network Reasonable price Low cost of living Implementation Plan Revive traditional tourism products and develop new tourism products Formulate legislation to protect and maintain Phuket’s natural Provide a wide rage of accommodation and transportation Maintain good infrastructure for tourists’ easy access ACTIVITIES PLANS Eco- tourism at National parks Strictly enforce the rule and regulation Price set according to target markets i.e family customers, honeymooners, MICE group and other segments of tourists Clean the road regularly and repaint signate Trim and decorate trees along the road Promote new tourist attractions Promotion channel can be Phuket local tourism office or the Thailand tourism authority to its target markets Implementation Plan Create good relationship with international press ACTIVITIES PLANS Invite international press to join the tsunami memorial service Conduct the road show and focus on “Phuket safe and sound” Develop and modernize information technologies to be used by local staff and tourists Create and up-to-date, accurate and adequate database of tourism in formation to aid tourists Execute tourism-marketing promotion, using a wide variety of operations in order to draw market targets Giving special discounts to tourists during low season Advertising Phuket attractions in travel magazine Annual organize Phuket Travel Exhibition and Festivals Implementation Plan Create appropriate packages & programming for target markets Partnership among all parties Improve human resources management system and continuous human resources development ACTIVITIES PLANS days/3nights Phuket Paradise: Free pick-up, Half-day city tour, Welcome drink, Underwater Explorer, Sea Lovers) Phuket Honeymoon Sweet: Free pick-up, Halfday city tour, Welcome drink, free dinner voucher for two Partnership between the hotels in Phuket with domestic and international airlines Phuket hoteliers, agents and airlines should join together to boost leisure and MICE market English training Tsunami warning system training Implementation Plan Marketing Budget The marketing budget for Phuket Province will be allocated from the total revenue of Thailand Tourism Authority The marketing budget will be allocated depending on the importance of the marketing activities planned Phuket Province has to ensure that work plans are implemented and budgetary spending carried out on schedule Implementation Plan Monthly initiative review meetings Business and market development reports Evaluation Procedures Control Procedures Include the review by management of performance in reaching intended targets, budget considerations, and arising opportunities The business and market development reports summarized monthly and year-to-date performance and are repaired bimonthly and issued to Tourism Phuket’s Board of Directors Using techniques like surveys, questionnaires to collect quantitative data for further development and analysis The measurement will be done quarterly to make sure that the marketing plan reaches the goals or it should be revised in order to read its goals Phon Navuth M957Z202 Dheeraj Mudgil M957Z210 Rossi Pan M9570234 Paranee Pihakaendr M957Z217 Nguyen Thanh Tu M957Z225 Nguyen Vo A Vy M947Z209