Hery Sofiaji

Matthew Andrzejewski Tingjie Zhong

Hanzhang Chen David Thieme

Interpreter : Nitaya Moonsarn

What are the driving factors for tourists tocome to a tourism destination How to increase brand awareness of Baan

Tawai village to potential visitors andpotential collaborators How is the way to increase the number of

visitors to the village based on currentconditions of the village

Objectives :Develop a clear path for Baan Tawai village toincrease its brand awareness to its potentialvisitors through potential collaborators.

Scope : Collecting information from any external parties

relevant to the project objectives Making market segmentation, targeting, and

positioning of the village Designing the marketing mix for the village

Preparation &Survey design

Datacollection

STPMarketing

Mix

Activities

Timing

Deliverables

• Official letter(s) fromNCU

• Design questionnaires• Design interview

leading questions

• Week 2

• Questionnaires• Leading questions

• Survey to tourists inBaan Tawai Village

• Survey to tourists inthe airport

• Survey to tourists inthe train station

• Interview localgovernment

• Interview localtourism association

• Interview travelagents & car rentals

• Interview drivers

• Week 2 - 4

• Survey results• Interview results

• Segmenting• Targeting• Positioning

• Week 4

• Customer segments• Target customers• Positioning of the

village

• 4 P formulation• Develop marketing

toolkit such asbrochure design,booth/stand designand presentationslides

• Design a trip packageto Baan Tawai village

• Finalize contact listof potentialcollaborators

• Develop tourismguidance

• Week 4 – 5

• Marketing tool kit• Example of trip

package• Contact list• Tourism guide

Source: 1. Department of Tourism, Ministry of Tourism and Sports; 2.www.tourism.go.th

#of Visitors in Chiang Mai

Transportation to Chiang Mai

Length of stay (days)

Year (2009) (2010) (2011) Thai 44.3% 53.4% 55.3% Foreigners 91.9% 76.3% 90.7%

% of visitors staying in Hotel

Total number of visitors in Chiang Mai is stillIncreasing where most of the foreign visitorsstaying in hotel while almost a half of localvisitors staying not in the hotel

Source : www.tourism.go.th

Most of Thai visitors know tourisminformation from TV while foreigners knowfrom internet and their friends

Internet usage of visitors # of visit

Trip arrangement

Source : www.tourism.go.th

Internet usage of visitors

# of respondents : 80 touristsSurvey date : May 29 to June 12, 2014Sampling error : 2.5 %Survey location : Chedi Luang, Walking

Street, Night Market andCraft Centers

• This survey is conducted as one approach tofind out the general sight of visitor’s behaviorin Chiang Mai that we can determine our nextstep and allocated necessary resources in theright way to attract more visitors for BaanTawai

• Another next survey might be needed toconfirm this survey results or if there is anymore in-depth information needed

Most of the visitors make travel arrangementbased on online information

Most of the visitors travel in a small group with 2to 4 people

Main transportation in Chiang Mai

Places have been visited

The way they know the places

Most of visitors choose car rental as their maintransportation vehicle during in Chiang Mai.Tuk-tuk, Taxi-meter and Red-or-Yellow Taxi alsotakes important role in transporting the touristsin Chiang Mai

Visitors’ valuation of tourism places

Transportation access to Elephant Park and Temple are considered as verygood, while the existence of food & drink got the highest value for visitors

#of responders 24 24 58 64 10 13 4

Visiting museum in Chiang Mai?

Suggested the highest price for a piece of art product (in baht)

Suggested ticket price for entering museum (in baht)

Only about 9% of visitors visited museum during their visitin Chiang Mai.

Most of visitors suggested that the entrance ticket price formuseum should be less than 100 baht, however, theaverage suggested ticket price is 158 baht

Most of visitors suggested that the highest price for a pieceof art product is less than 1000 baht, however, thesuggested average price is 2067 baht

Know Baan Tawai?

Have been to Baan Tawai?

The way they know Baan Tawai

Transportation to Baan Tawai

Only about 10% ofrespondents know BaanTawai. This shows thatBaan Tawai need moreeffort for increasing BrandAwareness to potentialvisitors

Because only a few ofrespondents visiting BaanTawai, the data aboutvisitors in Baan Tawai needto be recheck with anothersurvey result.

Product price in Baan Tawai?

Will you recommend Baan Tawai?

Would you like to join woodcarving lesson?

On average, the visitors spent 4000 baht inBaan Tawai.

The visitors’ willingness to pay for awoodcarving lesson is 450 baht

Suggestion for Baan Tawai Woodcarving Village

What make you recommend Baan Tawai?

Strategy to attract visitors to come to the place

Jewellery store

Woodcarving store

Umbrella center

Lacquer center

Silk Factory

Pottery Village

Tiger Kingdom

Places

• Maintain high quality products• Make agreement with travel agents and tour operators• Become a member of an association• Incentivize bus/van/taxi/tuk-tuk drivers

• Maintain high quality products• Offers overseas shipment

• Make agreement with travel agents and tour operators• Incentivize bus/van/taxi/tuk-tuk drivers

• Make agreement with travel agents and tour operators with 20 %- 30% commission• Incentivize bus/van/taxi/tuk-tuk drivers

• Make agreement with travel agents and tour operators• Incentivize bus/van/taxi/tuk-tuk drivers with souvenirs

• No strategy

• Make agreement with travel agents and tour operators with 20% - 25% commission• Service every drivers with free food and drinks

Strategy to attract visitors to come to the place

Royal Park Rajaprueck

Places

• Make several festival in a year• Advertise in TV, Radio, Newspaper, Magazines, website, Facebook and Insagram• Make agreement with travel agents and tour operators with discount 30% for

entrance ticket price• Direct marketing to many schools• Create tour package in cooperation with Night Safari, Aquarium Zoo and Hotel

• Most of the places make agreement with travel agents and tour operators to bring the visitors to theirplace. Most of the places also incentivised the bus/van/taxi/tuk-tuk drivers as appreciation for bringingvisitors to the place.

• Royal Park Rajaprueck makes a multi-channel strategy to attract visitors to come to the place. It heavilyincooperation with many schools that about 80% of their customers are school students

Part of business models with the tourism places

Pinguin Tour

Travel Agent 2

Standard Tour

Travel agents/ tour operators

• Get comission from tourism places based on transactions from the visitors thetravel agents bring

• Drivers get 100 – 200 baht per-parking to bring tourists to the tourism places

• She prefered the tourism places to give incentive to the drivers rather than thecompany as the company will automatically get advantage from the increasingnumber of customers

• Drivers used to have 30 – 50 baht for parking fee and about 5% - 10% ofcomissions based on visitors’ transactions

• Her van drivers prefer to get free food and drink during their waiting time inbringing the tourist to the places

• Some places which provide phone charger service may also attract van driversto bring the visitors to the places

• The tourism places need to make contract in advance to make the tour operatorto bring visitors to the places

• Standard Tour prefer transaction-based commission as high as 30% of totalvisitors’ transactions

• She also asked the tourism places to give parking fee about 100 baht for vandrivers and 200 baht for bus drivers

Part of business models with the tourism places

Pop Rent a Car

Car/motorcycle rental company

• About 10% - 20% of total transactions come from travel agents• Most of the renters drive the vehicle by themselves• There is no contract with the tourism places

About incentive in tourism places

Bus drivers

Van driver

Taxi driver

Drivers

• Bring tourists based on travel itinerary from the tour company• Most of tourism places give incentive to the drivers, some places give parking

fee, some places give free food and drinks• There is no incentives from Baan Tawai

• Bring tourists based on customer requests• Most of tourims places give parking fee, some give free food and drinks• Bring tourists to Baan Tawai only based on customer’s request

• Bring tourists based on customer requests• Free food and/or drinks from the tourism places will be enough but a parking fee

or comission will be highly appreciated

Some information collected

TAT Office

TAT Marketing Office

Industrial Office

Government / Association

• There are 4 types of tours and travel companies : Outbound tour, Inbound tour,Domestic tour and Specific area tour

• There are about 1000 travel agents in Chiang Mai and another 500 aroundChiang Mai. About 10% of them are tour operators

• Along the way from the city to Bosang and SanKamphaeng, there are severaldifferent places to be visited by tourists. This kind of situation can not be foundfor Baan Tawai

• In Chiang Mai area, Baan Tawai is the largest OTOP Village• There were big annual wood festival in the past that attract so many visitors to

visit Baan Tawai• TAT was a committee member to develop Baan Tawai, but not anymore today• During October to April is the high season for tourism business every year

• Many statistical data including growing number of visitors in Chiang Mai,transportation to Chiang Mai, demograpy of visitors, etc.

• The data collected from many related institution including airport andimmigration

• Behavioral data about tourists also collected from 30% of hotel in Chiang Maithat sent the data monthly to the Industrial Office

About incentive in tourism places

Tour guide 1

Tour guide 2

Tour Guide

• Bring tourists based on travel itinerary from the tour company• Almost all of tourism places give incentive to the drivers and tour guides. Some

places give parking fee, some places give free food and drinks

• Bring tourists based on travel itinerary from the tour company• There is no direct incentives she got from tourism places. She only need to

report her arrival to the tourism places. She will get all of the comission from hercompany

Some information collected

Young entrepreneur

‘Public Relations’

People in Baan Tawai

• About 20 years ago, there was annual wood festival in Chiang Mai. The festival,which was lasted for about 3 to 4 days was started from Chiang Mai train stationand ended in Baan Tawai village.

• About 7 years ago, the wood festival was blended into Flower festival, then sincethat time the number of visitors were decreasing to Baan Tawai

• Now, the wood festival is gone and the number of visitors to Baan Tawaidecreasing significantly.

• About 20 years ago, about 300 buses could visit Baan Tawai in a day during thepeak season

• He doesn’t know about incentive for the bus drivers and tour guides

Some information collected

The President of TourismBusiness Association ofChiang Mai (He is a formerdeputy Mayor of Chiang Mai)

Government / Association

• Baan Tawai should concern about the tourist behavior that change from withbuses in the past to with small vehicles today

• The business association in Baan Tawai should work to promote the village

Company• Baan Tawai is The Largest OTOP Village in

Chiang Mai• It consists of about 700 art shops with at least

two of them ever got 5 star from OTOP office• There are many woodcarvers in the village• It is located about 10 kilometers south of

Chiang Mai• Focus on woodcarving products• Only 1 representative restaurant in the village• 1 big gallery shows and sell premium

woodcarving products• 1 woodrcarving school• 1 learning center• 1 temple

Customers• Visitors which are Thai people and foreigner• Exporters, mainly through Bangkok

Competitors• Bosang - Umbrella• Wualai - Silver• Sankamphaeng – Silk, lacquer painting, silver• Tiger Kingdom• Elephant Park• Royal Garden Rajaprueck• Safari / Night Safari Park• Night Market / Walking Street

CollaboratorsExisting collaborators• San Pa Thong woodcarvers• Lamphang woodcarvers• Hang Dong district office• North-Chiang Mai UniversityPotential collaborators• Hotels in Chiang Mai• Airport• Public transportation companies• Media – TV, radio, newspaper, etc• Travel agents and tour companies• Current competitors

Condition of Economic• Significant increase of number of visitors to Chiang Mai

annually• Military coup potentially reduce the number of visitors

We are only going to target:

Customer type

Nationality

Travel arrangement

Visitors Exporters andImporters

Thailand Foreigner

Self Agent

Exporters andImporters

Agent

The largest woodcarving village in Thailand which provides not only various woodproducts ranging from wood-handicrafts to premium wood-carving products but alsointeractions with woodcarvers and experience with woodcarving lesson.

Walking Street

Bosang

Elephant Park

Tiger Kingdom

BaanTawaiNow

Future

Tota

l Cos

t

Experience

Initial Baan Tawai woodcarving village

Baan Tawai Zone 1-6

• Farther

• About 80% of all shops

• No

• No

• Yes, Baan Tipmanee

• Yes, near the temple

• Yes

• Yes

• Yes, 2 shops

Distance fromHang Dong Road

Member of Association

RepresentativeRestaurant

Bus parking lot

Place(s) with premiumProducts

Learning Center

Shipping company

Local wood artisans live

Shops with 5 star OTOPcertificate

Initial Baan TawaiComponents Baan Tawai zone 1-6

• Closer

• About 20% of all shops

• Yes, 1

• Yes

• Yes, Mermaid shop

• No

• Yes

• Maybe a few

• Maybe No

Initial Baan Tawai Baan Tawai zone 1-6

Products• Emphasize on several places : Baan Tippmanee, 5 star OTOP shops and woodcarving

school• Emphasize on several artisans workshops and shows the story about the artisans in

the artisan’s workshop• Woodcraft shops as primary complementer• Restaurants as secondary complementer• Waiting lounge for drivers and tour guidesPlace• Focus on the zone where most of artisans lived• Establish a spacious parking lots

Price• 150 Baht entrance fee entrance for a museum/gallery in Baan Tawai, discount 50%

for every students showing their student ID• 450 baht for a half-day woodcarving lesson• Shops : various prices ranging from 30 baht for small low-end products to 50,000

baht• Restaurant : 50 – 120 baht for food and 15 to 45 baht for beverages

Promotion• Informational leaflets• Stickers red or yellow taxi, shop owner’s car, university cars• Promotion through survey• Annual festival and annual auction• Join the existing festivals held by Royal Park Rajaprueck• Internal tour packagemanage internally• External tour package through travel agents• Premium product displayed on the airport• Invite school students for carving or decorating lesson• Grand launching

Promotion through media• TV, radio and newspaper : news coverage for the festivals, auction and displayed

premium product in the airport• Internet : website, wikipedia, tripadvisor.com, facebook, lonelyplanet.com,

chinese websites, etc

Promotion• Develop a waiting lounge for drivers and tour guides• Create a tour routeDetermine the location for drivers and tour guides• Design the simple leaflets• Design the stickers• Develop the funding system for join promotion percentage of transactions to

fund the operational expenses of the tourism activities in the village• Design the Annual festival and auction• Negotiate with Royal Flower Rajaprueck to join the flower festival• Ask local government to support premium products displayed on the airport

two options : for sale or not for sale• Make presentation to invite kindergarten and elementary school• Create management system by chief of village office

This is a survey of visitors’ preferences in Chiang Mai Area conducted by a team from Purdue University, USA in cooperation withNorth Chiang Mai University, Thailand. We really appreciate your time to answer questions below.

About visiting Chiang Mai1. What is your main reason coming to Chiang Mai?

a.Vacation b.Business travel c.Visiting relatives d.Shopping e.Religious purposes f.Others _______________________2. How many people are traveling with you in the Chiang Mai area? _______ people3. How did you make your travel plan?

a.Based on online information b.Travel agents c.Ask someone who has visited here before d.Did not plan e.Others _________4. While in Chiang Mai, did you travel with child/children age 12 or below?__________5. What kind of transportation have you mainly used to travel in Chiang Mai? (please choose one)

a.Red or yellow taxi b. Taxi-meter c. Car rental d. Tours bus e.Tuk tuk f. Others______________________________________6. What places did you visit during in the Chiang Mai area?

a. Tiger Kingdom b. Elephant park c.Temple d.Night Market / walking streete. Flower garden f. Craft center(s) g.Others______________________Please mention)

7. How did you find out about those places? (you may choose more than one)a. Friends or somebody b. brochure/leaflet c.facebook d. twitter e.tripadvisor.com f. lonelyplanet.com g.Wikipediah.other internet websites i.sign/billboard j. others__________________________________________________(Please mention)

8. Please give scores to the places you have visited.(1=very poor, 2=poor, 3=average, 4=good, 5=very good)a. Tiger Kingdom (please circle that match your criteria)

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsTiger shows : 1 2 3 4 5 Did not see any showsInteraction with the tigers : 1 2 3 4 5 Did not interact with tigersFood & beverages : 1 2 3 4 5 Did not purchase any food

nor beveragesOthers 1 2 3 4 5

b. Elephant Park

c. Temple

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

d. Night Market / Walking Street

e. Flower Garden

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

f. Craft Center (s)

g. Other (s)

9. Did you visit any museum(s) during your stay in Chiang Mai area?_________10. In your opinion, how much is the ideal ticket price to enter a museum? __________ Baht or ____________ (in your currency, pleasealso mention your currency)11. For a piece of art work product such as painting, woodcarving, stonecarving,etc., what is the highest price you willing to pay for?__________________ Baht

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

Transportation : 1 2 3 4 5 Did not use transportationTicket price : 1 2 3 4 5 Did not purchase ticketSouvenirs : 1 2 3 4 5 Did not purchase souvenirsElephnat shows : 1 2 3 4 5 Did not see any showsInteraction with theelephants :

1 2 3 4 5 Did not interact withelephants

Food & beverages : 1 2 3 4 5 Did not purchase any foodnor beverages

Others 1 2 3 4 5

About Baan Tawai Woodcarving village12. Do you know about BAAN TAWAI woodcarving village? ______ if No, proceed to question 2313. How did you find out about BAANTAWAI woodcarving village?

a. Friends or somebody b. brochure/leaflet c. internet websites d.facebooke. twitter f. trip advisor g. lonely planet h.sign/billboard i.others

14. Have you been to BAANTAWAI woodcarving village? ____ if No, proceed to question 2315. How did you get to BAANTAWAI woodcarving village?

a. Public transportation b. Taxi c. Car rental d. Tours bus e.Others______16. How much money approximately did you spend during your visit in BAANTAWAI woodcarving village? __________ Baht17. How do you think about the price of products in Baan Tawai village? ____

a. too cheap b.cheap c.reasonable d.expensive e.too expensive18. If you did not buy products in BAANTAWAI woodcarving village, why?

a. not interested in wood carving products b.poor quality of the products c. too expensive d. I didn’t know how to buye.already bought so many souvenirs/goods f.others ___________________________(please specify)

19. If BAANTAWAI offers woodcarving and painting experience activity (around a half day) for visitors, would you like to joinit?________

20. How much money you willing to pay for the woodcarving experience activity? ______Baht21. Your suggestions for BAANTAWAI woodcarving village ___________________________________________________________22. Will you recommend Baan Tawai to other people? _______________Why?________________________________________________________________________________________________________

About yourself23. Your age : ____ years old24. Country of origin:________________________________________________________25. Gender : Male Female26. Occupation :a. Government employee b. Company’s employee c.Company’s executived. Business owner e.Entrepreneur f.Students g.others_______________________26. Please write down your email address for our future survey (optional)?_______________

Thank you for your time….. have a wonderful time in Chiang Mai.

Notes :• This survey was also conducted in Chinese and Thai language• A longer-term online survey were also developed using Qualtrics.

… to Tourism place’s owner / manager• How long does the place has been operated until today?• How many visitors visit the place every year?• When is the high season and low season of visitors come to visit the place?• What is the strategy to attract people to visit the place• Is there any agreements with travel agents or tour operators?• Do you need to give incentive to tour guide and/or bus/van driver?• What are your suggestions for Baan Tawai to increase its number of visitors?

… to Travel agents• How long does the travel agent has been operated until today?• What is your number of customers per year approximately?• When is the high season and low season of the customers arrival?• What is the strategy to attract people to use your company’s services?• Is there any agreements with tourism places?• Do we need to give incentive to tour guide and/or bus/van driver?• How is the way you determine the places to be visited for tourists?• What are your suggestions for Baan Tawai to increase its number of visitors?

… to Bus/van/taxi drivers• Do you get incentive from the tourism places?• How is the way they incentivize you as a driver?• What are your suggestions for Baan Tawai to increase its number of visitors?

… to Tour guides• Do you get incentive from the tourism places?• How is the way they incentivize you as a driver?• What are your suggestions for Baan Tawai to increase its number of visitors?

… to Government officers or Association’s President• What do you know about history of Baan Tawai• What makes different between Baan Tawai 20 years ago compared with today?• What kind of data about tourism in Chiang Mai you have and can we get the data?• What are your suggestions for Baan Tawai to increase its number of visitors?• Will you support any program to attract people to visit Baan Tawai?

… to Local young entrepreneurs• How long have you been in the business?• What mostly your customers are? Visitors or importers?• What do you know about history of Baan Tawai• What makes different between Baan Tawai 20 years ago compared with today?• Are you member of association in Baan Tawai?• If so, how much money you need to pay regularly and what facilities you get from the

association?• What are your suggestions for Baan Tawai to increase its number of visitors?

... To Car rental company• How long have you been in the business?• How many car rental companies approximately in Chiang Mai?• When is the high season and low season of the customers arrival?• What is the strategy to attract people to use your company’s services?• Is there any agreements with tourism places?• Will you support any program to attract people to visit Baan Tawai?