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Presented by Group 3

Low Cost Airline Nok Air

Industry Background
Liberalization (Open sky) Government subsidized tourism business Air transportation
National Airline Secondary Airline Low Cost Airline

Pricing strategy

Industry Background
Low Cost Airline
Thai Air Asia
Shin Corp (51%) Air Asia Malaysia (49%)

One two go
Orient Thai (100%)

Nok Air
Thai Airways (39%) Crown Property Bureau, Krungthai Bank, Private investors and Dhipaya Insurance (61%)

Company profile
Registered under Sky Asia Co.,Ltd. A joint venture between public and private investors.
Thai Airways International Public Company Limited, - CPB Equity Company Limited, - SCB Securities Company Limited, - Krung Thai Bank Public Company Limited, -Dhipaya Insurance Public Company Limited, -Goverment Pension Fund, - Thailand Prosperity Fund by ING Funds (Thailand) Company Limited, - King Power International Company Limited, - Individual investors

Company profile (cont.)


Offer the same safety standard as Thai Airways International Nok Air will be flying to all parts of Thailand, with Chiang Mai, Hat Yai, Udon Thani, and Phuket as the planned destinations during 2004

Vision
With Nok Air, air travel will no longer be expensive for Thais. Nok Air will help enhance the quality of life for Thais to be comparable of those in other developed countries. Thais will now be able to explore the beauty of our own countries, families will now have more opportunities for reunion and business travelers will now be able to pay more sensible prices for airfares.

SWOT
Strengths
High number of distribution channels Strong backup Best Human Resource Best service quality Brand awareness Effectiveness in space management on flight High level of employee quality

SWOT
Weaknesses
Price Low experience of management team Bad cash flow problem Low level of advertising

SWOT
Opportunities
High number of demand Convenience and faster Joint promotion Higher growth rate Growth rate increasing by Hong Kong and Ma Gout traveler with high number of booking rate Government support open sky policy

SWOT
Threats
High number of competitor in the Market Singapore government support low cost airline in the country Price war with promotion war Boring about long time booking (behavior change) Payment Policy Confirmation Process Fuel cost increasing 20% increase for airline tax

Target Customer
Local Thai international tourists family visitors leisure and business travelers

Product
Destination
Chiang Mai Udon Thani Phitsanulok Phuket Had Yai Khon Kaen (Future Route)

Flight Schedule

Nok Air Route Map

Services
Call Center Number:
Call 1318 (Operating hours from 8.00 - 21.00)

Channels to Book :
Website, Call Center, and Airport Ticket Office

Channels to Pay
Cash at 7-Eleven Counter Service Plus, Master/VISA card online, and via the call center, Direct transfer at SCB ATM, Also many more channels to come in the future

Comparison of Pricing Strategy


NOK Air First come Lowest Price* (No other promotion) Air Asia First come Lowest Price* Period discount 1-2-Go One pricing strategy* Period discount

* Price excluding Airport Tax and fee

Promotion
Flight attendance contest Public Relation Advertising
Radio Magazine

Ad. Spending
Ad.Spending Total Ad. Air Asia Nok Air Orient Thai 1,667,000 2000 499,590,000 2001 295,412,000 2002 217,476,000 2003 363,360,000 4,553,000 2004 293,657,000 30,346,000 6,246,000 7,127,000

Key success factors


Providing clear information especially on price Safety assurance Route provide Service provided on board On time schedule

Thank you