How to use marketing mix buile Chiang Rai province as a destination during winter season - Assignment Example

? How to use marketing mix buile Chiang Rai province as a destination during winter season? How to use marketing mix buile Chiang Rai province as a destination during winter season Student’s Name College Name Professor Name Subject Abstract Chiang Rai province in Thailand is a renowned tourist destination for foreign tourists as it is having cool, thick forest, elephant camps, majestic waterfalls and hill-tribe villages. Chiang Rai is making its best efforts to attract more female and family tourists, so that image of Thailand as a sex destination is attenuated by the image of Chiang Rai’s scenic and cultural attractions. Chiang Rai has large potential to offer medical tourism, adventure tourism and golf tourism to the foreign tourist at the affordable cost with the world-class luxury. This research essay will make an earnest attempt to research the possibilities making Chiang Rai as the most attractive winter tourist destination for golf, adventure and medical tourism in an exhaustive manner. CHAPTER 1 – LITERATURE REVIEW In the last decade, tourism industry is one of the major revenue earners for the Thailand economy, and tourism accounted about 7% of its GDP (Gross Domestic Product). (TAT 2010). Tourism Authority of Thailand (TAT) has launched various programs to promote the tourist industry both domestic and inbound one with attractive slogans like “ Unseen Thailand “, & “ Amazing Thailand.” The revenues generated through tourism industry are mainly meant for income distribution to various regions of Thailand and for economic growth, including Chiang Rai province. (Suppapanya & Banjongsiritas, 2009). According to TAT, about 14,584,226 international tourists arrived in Thailand in 2008 14,149,841 international tourists arrived in Thailand in 2009 alone. Country of Residence 2008 2009 Number ^ (%) Number ^ (%) BAHRAIN 14,237 + 0.13 18,545 + 30.26 EGYPT 13,048 + 6.36 13,394 + 2.65 IRAQ 1,656 + 20.00 1,970 + 18.96 JORDAN 8,070 + 14.11 8,913 + 10.45 KUWAIT 31,890 - 9.10 47,115 + 47.74 LEBANON 5,458 - 6.14 6,036 + 10.59 LIBYA 957 - 26.33 1,439 + 50.37 OMAN 49,328 + 22.02 42,451 - 13.94 PALESTINE 861 + 96.13 718 - 16.61 QATAR 15,138 - 10.55 15,913 + 5.12 SAUDI ARABIA 18,328 - 24.44 14,636 - 20.14 SYRIA 3,775 - 15.19 4,503 + 19.28 U.A.E. 116,664 + 18.90 119,450 + 2.39 YEMEN 3,469 - 2.88 2,993 - 13.72 MIDDLE EAST 282,879 + 6.62 298,076 + 5.37 Source- (Ambhanwong 2010) International Tourist Arrival in Thailand in 2009 -14,149,841 International Tourist from Middle East alone 298,076 (5.37%) Source - (Ambhanwong 2010) Marketing Mix According to Kotler et al (2006), marketing mix connotes the elements that a business owner or a manager can manage to influence the consumers in decision- making on the tourist visit to Chiang Rai province, especially in winter. As per Shoemaker, Lewis and Yesawich (2007), Professor Neil Borden of Harvard can be said as the father of the concept namely “marketing mix.” Borden developed the “four Ps” principles namely “product, place (distribution), price and promotion. (Kotler et al, 2006) The term product connotes to features like the business range of services or products, the novelty of those services or products, their distinctiveness from the products of their rivals, or their excellence to the competitors’ services or products with reference to quality. Price connotes to the services / or product’s prices enumerated in the price list or any incentive offered for the promotions of such services or products, and if there is any price incentive available for the peak season or offseason period. Place connotes to the delivery of the services or products gauged by the elements like availability, distribution and convenience. The term promotion connotes to informative sales campaign like displays, features and discount, detailing and advertising. McCarthy is of the view that marketing of tourism industry is different from that of marketing of products and thus, needs a varied approach to the marketing mix – that is – the concept of the marketing mix to be more advantageous and applicable for tourism industry. (Htun & Chaisawat, 2008). As per Kotler & Armstrong (2006), marketing mix is an efficient marketing strategy which is a mixture of whole of the marketing mix features into an integrated marketing program intended to accomplish the company’s marketing goals by conveying values to clients. “(Htun & Chaisawat, 2008). The marketing program in tourism industry unites a variety of constituents into a feasible – a viable, strategic plan. A right marketing mix should be the main aim of a tourism manager as the right mixture of features that will generate more revenues. The marketing mix is the combination of every feature that manipulates the marketing initiative. (Suppapanya & Banjongsiritas, 2009). Pricing – There is direct relationship between the image of the product and the sales volume. Product – The salient features of the product offered will be of useful to decide its position against the competitor’s products and to offer info on how to vie efficiently. Timing- High season, winter season, low season, growing drift in the business cycle must be considered. Brands- The consumer requires help in remembering the name, product, labels, trademarks, logos and other identifiable marks. Public relations- Without good relations with the tourists, even the well planned marketing plan would fail. (Goeldner & Ritchie 2009). Before making their preferred destination, tourists would have analysed a variety of offers on hand before making any final decision on making a leisure trip. According to Herbert Simon (1977), tourist, in general, will make a three-phase decision making initiative including design (analysing the available alternatives), intelligence (evaluating the issues and information gathering) and the preference at which final decision is arrived at. As per Kotler et al (2006), there involves five-phase decision making initiatives , which require information search , recognition , analysing the available alternatives, purchase choices and post purchase demeanour. (Goeldner & Ritchie 2009). How Marketing Mix influences the decision of the Tourists in Thailand? Goeldner & Ritchie (2009) , in their empirical research study ,have found that respondents in a survey who visited Baan Phangam province in Thailand gave the highest mean positive feedback (3.99) on the service/product aspects for adventure tourism. This is trailed by place (3.43), and then, the price and then promotion. Further, the tourists also gave more weight to natural beauty of the surrounding or scenic beauty, daring adventure movements and a mixture of adventure activities. (Srikaew & Baron 2007) As regards to tourist’s demeanours , positive feedback given by colleagues / friends who visited Thailand already scored high mean score of 56% for a tourist to decide as Thailand as their favourite tourist destination. Internet scored about 32%; Magazines scored about 7% and rest by TV, Radio and other means for selection of Thailand as their favourite tourist destination. (Srikaew & Baron 2007) As regards to influences for decision making purpose , family members scored high mean score of 37% , whereas friends and colleagues scored mean of 63% . About, 75% of tourist opined that they would like to revisit Thailand again mainly due to the scenic beauty of Thailand ( Chiang Rai ) ,excitement and variety of adventure activities , again having a desire to enjoy the seasons at Thailand , due to different classes of lodgings available , offering good services to tourists and is connected by air with Bangkok. (Goeldner & Ritchie, 2009). About, 25% of the tourists were of the view that they would not visit Thailand again due to old lodging houses, high cost of adventure activities, non-interesting adventure activities and complexity in transportation to and fro to the adventure sites. When requested to list their difficulties while at Thailand, the tourist cited the foremost four barriers which include low quality of accommodation available, difficulties in being transported to adventure sites, lack of communications or public relations and abnormal cost of adventure activities. Suppapanya & Banjongsiritas empirical research have revealed that the impact of marketing mix elements in decision making of availing adventure tourism at Baan Pha-ngam in Thailand. About, 85% of the interviewees informed that through the Internet and through the word-of-mouth, they came to know about Thailand’s tourist attraction. By giving weight to the mean scores, one can come to a conclusion that the interviewee’s preferences in making their informal choice on taking adventure tourism at Thailand are mainly due to “product, place, price and promotion” (4Ps). Why Chiang Rai is the favoured Tourist Destination during winter? Chiang Rai is situated at the foot of the Thailand’s highest mountain ranges, which is regarded as an apt location for adventure or eco tourism, medical tourism, golf tourism and general sightseeing. Chiang Rai bestows a relationship that cannot be seen in a large town in the Thailand. With a less than 100,000 population, Chiang Rai is situated at the middle of the infamous Golden Triangle- where Laos and Burma congregate in what was regarded once as the prime opium-manufacturing province in the globe. Chiang Rai is a renowned tourist destination for foreign tourists as it is having cool, thick forest, elephant camps, majestic waterfalls and hill-tribe villages. (Wendy and Justice 2011) Chiang Rai offers a higher quality of life and better living conditions. Further, there is no traffic congestion, offers clean and cool air and people are more friendly and helping. Chiang Rai is reported to have fewer costs of living as compared to any other tourist destination in Thailand. Further, at Chiang Rai, there are lot of delicious and inexpensive eateries. (Wendy and Justice 2011) During Saturday evenings, foreign tourists in Chiang Rai will love to have dinner in street food shops with enjoyable free concerts and also offers a variety of shopping to foreign tourists like handicrafts, clothing, fresh produce, lovely fruits and deliciously cooked Thai foods. Foreign tourist lavishly can spend their afternoon time ravishingly at Chiang Rai beach in the background of the Mae Kok River and can enjoy with a few drinks or a light meal in a bamboo hut or shelter. Foreign tourist can also visit Christian churches, Buddhists temples and can have a bath in the warm water of nearby hot springs. (Wendy and Justice 2011) Chiang Rai was once the capital of Lanna Kingdom and then, later turned to be the abode of anti-communist Chinese’s rebels and opium mafia’s .However, at present days, Chiang Rai is experiencing harmony and peace and is notorious for its adventure and medical tourism. (Wendy and Justice 2011) A great deal of effort has been put by Thailand’s government to develop Chiang Rai province as one of the top-quality dental and health care service centre, and to become a leading medical tourism destination. At a fraction of cost, there are available accredited both dental and medical facilities in all most in every city and town in Thailand and Chiang Rai is no exception to it. The top-notch private hospitals at Chiang Rai have long experience in treating foreign medical tourists and are having a battalion of English speaking medical professionals and medical sub-staffs. (Wendy and Justice 2011) As per the significance of marketing mix elements, the operators of adventure tourism should pay more attention for the preservation of natural scenic beauty of the surrounding areas and environment at Chiang Rai province thereby ushering adventure activities, affordable health tourism, high-class golf tourism, to maintain a mixture of adventure activities and to offer more convenience to tourists who wish to come to Chiang Rai during winter season. (Goeldner & Ritchie, 2009). How We Can Improve the Chiang Rai Region As A Favourable Tourist Destination in Winter? Product Golf Tourism Chiang Rai is making its best efforts to attract more female and family tourists, so that image of Thailand as a sex destination is attenuated by the image of Chiang Rai’s scenic and cultural attractions. (Jafari, 2008, p.578). As per TAT ( Thailand Tourism Authority ) estimates , about 600,000 golf tourists from around the globe are expected to visit Thailand in the coming years and no doubt , Chiang Rai also receives some percentage of the above .Thus , Golf tourism can be the best marketing mix for the Chiang Rai winter tourism project. Presently, Europe contributes about 65% of Golf tourists in Thailand and remaining 15% is contributed by Australia. On average, the Golf tourists spend about 100,000 bhat in Thailand, which is 60% less than what is being spent by the typical tourist in another tourist destination. Hence, Thailand offers a comparable price advantage to the golf tourist but with the international standards and luxury. Why Thailand is an attractive centre for Golf tourism is that it is cost-effective as contrasted with UK, Scotland, Ireland and the USA. Thailand offers an excellent weather all around the year and winter weather at Chiang Rai is most suitable for Golf and other golf tourist destination around the world cannot vie with it. During their frost season, i.e. from November to March , European prefer to avail their golf vacation in Thailand, and this make sure that Thailand’s golf tourism is very busy even during the winter seasons thereby entertaining the golf lovers around the world. (Eglobaltravelmedia 2012). The leading travel magazines like Conde Nast Traveller , UK and Travel & Leisure , U.S.A have recommended as Thailand as the preferred destination for golf vacation ,especially during winter ,which has added to its alluring attraction. (Eglobaltravelmedia, 2012). During the year 2012, Thailand is poised to be the leader in the golf tourism and is likely to avail a major slice of the International Golf Tourism. Chiang Rai province should take adequate steps to make it an attractive golf tourist province, especially during winter by formulating a suitable marketing mix to attract heavy number golf international tourists. (Eglobaltravelmedia, 2012). Adventure Tourism As per Newsome et al (2001), for eco tourism, adventure tourism, commercial expeditious, natural tourism, outdoor education or outdoor recreation, there is no availability of clear cut definitions for the terms referred above. However, TAT has defined the adventure tourism as one kind of tourism, which needs facilities and equipment during the participation of such adventure tourism. As per Chiang Mai University (2002), the outdoor activity includes excitements, fun and challenges that employ natural tourism resources in a major way. Bird watching , trekking , nature education , kayak , boat sightseeing , mountain climbing , mountain biking , hang glider , white-water rafting , and tent camping. As per Boonlert Jittangwattanna (1999), the main objective of adventure tourism is to develop understandings and perceptions by tourists’ as regards to economy and natural resources, to offer value propositions and experience to tourists and to enhance the standard and quality of life for local communities at Chiang Rai, and to sustain and to safeguard the quality of natural environment in tourist sites. (Suppapanya & Banjongsiritas 2009). As per TAT ( Tourism Authority of Thailand) , adventure tourism is to be promoted in Chiang Rai province , as this province is abundant with the natural resources like cliffs , mountains, forests, rivers , waterfalls , creeks, etc. These usher a hell of adventure activities like mountain biking, trekking, abseiling, kayaking, top-roping etc. (Suppapanya & Banjongsiritas 2009). Medical Tourism Thailand is said to be the favourite destination for medical tourism and in the year 2008 alone, about 1.36 million people visited Thailand as a medical tourist. Thailand is said to be one of the contemporary international centre for medical tourism, and now it excels India both by way of income generated and numbers of patients. One another special feature is that the majority of the medical tourism hospitals in Thailand have the foreign management expertise team. Thailand’s medical tourism has a wide coverage ranging from cardiac surgery to dentistry and organ transplant operations and increasing significance of medical screening. The decrease in medical tourist numbers in 2009 is mainly due to local political turmoil. (Connell, 2010, p.64) No of Foreign Tourist Visited Thailand for Medical Tourism Source - (Ambhanwong 2010) Year No of Foreign Tourists Visited Thailand for Medical Tourism 2001 500000 2002 630000 2003 970000 2004 1100000 2005 1280000 2006 1320000 2007 1325186 2008 1363295 2009 1267864 Source - (Ambhanwong 2010) It is claimed that Bumrungrad Hospital in Thailand alone treats every year more than 400,000 foreign tourists. As per forecast made by the Thailand Development Research Institute, Thailand is expected to become a world class medical hub, and its annual income from medical tourism is expected to increase to $ 2 million in the year 2012. Affordable cost and quality treatment is the main attraction for foreigners to choose Thailand as their destination for their medical treatment. Medical tourism in Thailand is attenuated due to the quality of service, the weather, and the hospitality and service providers are also very receptive to the demand on the international level. For the foreign tourists , hospitals in Thailand offer end –to-end services right from booking flights , arranging for visas and transfer from the airport to hospital and vice-versa .(Oxford Business Group ,2010,p.149). Revenue from Medical Tourism in Thailand Source - (Ambhanwong 2010) Revenue from Medical Tourism in Thailand Year USD in Billion 2004 0.643 2005 0.754 2006 0.867 2007 0.978 2008 1.014 2009 0.943 Source-(Ambhanwong 2010) Chiang Rai is also having globally accredited hospitals also so the medical tourism can be marketed in the winter season. For tourist attraction, there are large shopping complexes just few minutes’ drive from the city centre. Further, tor medical tourist, high -class accommodation is available at a lower cost. References Ambhanwong, S. (2010) Amazing Thailand, Amazing Value Retrieved February 22, 2012, from www.tatnews.org/ATM2010/DrSurapong%20ATM2010.ppt Connell J. (2010). Medical Tourism. New York: CABI. Eglobaltravelmedia. (2012). Thailand’s Booming Golf Tourism. Retrieved February 22, 2012, from http://www.eglobaltravelmedia.com.au/z-more/golf-tourism/thailand%E2%80%99s-booming-golf-tourism.htm Goeldner, C R & Ritchie, B J R. (2009). Tourism, Principles, Practices, Philosophies. New York: John Wiley and Sons. Jafari, J. (2008). Encyclopaedia of Tourism. New York: Routledge Taylor and Francis. Kotler P, Brown Linden & Stewart A (2003), Marketing, Australia: Pearson Education. Oxford Business Group. (2010). The Report: Thailand 2009. New York: Oxford Business Group Press. Srikaew A & Baron S. (2007). Marketing Strategies Supporting National Plans Contributions of Universities. Liverpool: University of Liverpool. Suppapanya P & Banjongsiritas S.(2009) Marketing Mix Factors Affecting Tourists’ Decision Making on Adventure Tourism: A Case of Baan Pha-ngam , Na-di District, Pra-cin-buri Province , Thailand. Retrieved February 22, 2012, from scthlr.turismo.wu-wien.ac.at/files/papers/p65_fullpaper.pdf Wendy and Justice, D. (August 2011). Chiang Rai, Thailand – Kingdom of a Million Rice Fields Retrieved February 22, 2012, from www.overseasretirementletter.com/.../orl-35-1108-chiang-rai-thailan... Read More