BRUNEI INTERNATIONAL AIRPORT

BIAs Background 1. History, Present and Future

Commercial air transport in Brunei began in 1953, with the establishment of air service links connecting Bandar Seri Begawan with Anduki in the Belait District. Initial flights to Malaysia were made to accommodate travelers from Labuan in Sabah and Lutong in Sarawak. Airport services were operated from the Berakas area at an old runway site built by the Japanese during World War II. It was known then as the Brunei Airport. The growth in popularity of air travel in the '70s resulted in a significant increased in the civil aviation movement. Suddenly, the old airport was swamped with activity, operating beyond its capacity. This prompted the government to scout for a new site to build a modern airport. A new airport was constructed in Mukim Berakas in the Brunei-Muara District, because it was easily accessible from all areas of the country. The airport became operational in 1974 and opened Brunei to the world. The airport consist of an international terminal which can handle up to 2 million passengers, a cargo terminal with a capacity of 50,000 tons of cargo and a royal terminal where the His Majesty Sultan's Flight is based at. In 2005, Brunei International Airport handled 1.3 million passengers. In 2008, it was announced that a study to review necessary expansions and modifications was completed, and a master plan was written up soon after. The master plan consists of different phases, and Phase 1, which includes upgrading the existing passenger terminal building and the cargo terminal, is targeted to be completed by 2013. At the moment, Phase 1 was already completed at the end of 2009. After Phase 1 is completed, Phase 2 could be initiated in 2020, which includes the construction of a new terminal, which will be able to accommodate up to 8 million passengers.

2. More about Brunei International Airport

Brunei International Airport (BIA) is the primary airport in the nation in Brunei. The Royal Brunei Air force is also based at Rimba Air Base which is located in the Brunei International Airport. It serves destinations across Asia and Oceania, with the only airport outside these continents being London Heathrow Airport. Brunei International Airport connected to rest of the world in 1974 to meet the popularity in commercial air travel. A service hub fully-equipped with retail outlets, restaurants, banking and communication facilities, Brunei International Airport is continuously enhancing its services to develop itself a one-stop centre for travelling and services. The general services and facilities that are provided: information service counter, lost and found counter, medical service, convenience stores, money changers, ATM machines, parents room, postal and telecommunication, prayer room, Brunei Tourists centre, smoking area, IT services include internet and wireless services, transit day rooms, bar lodges and restaurants and cafes under rest and relax services.

3. Airport management

Responsibilities: Responsible in the administration and management of the terminal building To provide facilities and services in the terminal building To facilitate the movement of passengers

Under organizational structure, basically the role is that to effectively and efficiently discharge the APM responsibilities. Sub-section of the APM section Terminal building operations/commercial Landscape Terminal building Passengers relations and services

4. Department of civil aviation

Intro: The Department of Civil Aviation under the Ministry of Communications is responsible for ensuring the safety, security and regularity of civil air transport operations, and planning the efficacious and orderly development of the civil aviation sector of His Majesty's Government of Brunei Darussalam. Responsibilities: To effectively and efficiently discharge these responsibilities, the Department of Civil Aviation:

Maintains and manages the various aeronautical facilities and services at Brunei International Airport, Operates and manages the various facilities and services within passenger terminal building of Brunei International Airport, Provides Air Traffic Control, Aeronautical Telecommunications, Aeronautical Information, Flight Safety and Aeronautical Meteorology Services for air transport operations within the airspace of Brunei Darussalam, Assists His Majesty's Government in discussions and negotiations of bilateral Air Services Agreements necessary for the operation of local airline operators, Regulates and promotes the orderly development of air transport, Advises His Majesty's Government on all matters appurtenant to civil aviation, Provides adequate fire-fighting and rescue facilities and services at Brunei International Airport, Coordinates the provision of aeronautical and maritime search and rescue services within the Brunei Darussalam Search and Rescue Region, Represents His Majesty's Government in regional and international meetings and conferences relating to civil aviation matters, and Performing other tasks and duties as may be delegated by the Ministry of Communications in relation to safety, security and regularity of civil air transport operations in Brunei Darussalam.

Mission: The Ministry of Communications, the umbrella organization of the Department of Civil Aviation, formulated a theme, 'Towards Global Access', which emphasizes international linkages, economic cooperation and regional, as well as international, interdependency. In support of the Ministry's

thrust to achieve world-class standards, the Department of Civil Aviation launched its core mission, thus: To develop the Brunei International Airport as the leading regional air hub by providing the highest level of safety, security and efficiency of aviation system; competitive services and facilities for the maximum benefits of the aviation communities. Objectives: With its core mission, the Department of Civil Aviation is committed to fulfill the following objectives:

To maintain an open sky policy which aims to increase passenger and cargo traffic, liberalize air traffic rights and expand the number of airline companies serviced by the airport. To establish an aircraft maintenance centre with capabilities to handle, repair and maintain Boeings, Airbuses and Fokker planes. To transform the airport into a viable commercial and business centre, paving the way for the establishment of a world-class Airport City. To direct efforts towards the establishment of a Transshipment Centre. To establish the airport as a regional refueling centre by offering the most attractive fuel prices and liberalizing fuel suppliers. To continuously improve and upgrade facilities and services at the airport in general, and the passenger terminal in particular through various expansions projects. To attain the highest standards of aviation safety, security and efficiency through improved facilities and services, such as the 14,000 feet, runaway and Cat 2 equipment. To involve the private sector and encourage their participation in the process of development, particularly, that which concerns the Brunei International Airport

Functions: Vision: To develop Brunei International Airport as the Air Hub for BIMP-EAGA region. Values: is our priority are our inspiration guides our actions are our focus is our goal To maximize revenue for Department of Civil Aviation through aeronautical and nonaeronautical activities. To coordinate with Airport Management Office and the airport community in enhancing the service quality at Brunei International Airport. To coordinate with Ministry of Communications in the development of Air Routes for Brunei International Airport. To develop and promote Brunei International Airport as an attractive location for investment.

Strategic focus: 1. 2. 3. 4. 5. 6. Corporatization and Privatization Private Sector Facilitation and Participation Infrastructure Development Operations Enhancement Human Resource Development Safe, Secure and Clean Environment

5. Departure

Check in procedure Check-in starts at least 2 hour before flight departure. The start and end times of Check-In operations vary by airline, and passengers are advised to check with their airline for information. It is recommended that passengers check-in 1 hours before their flight, or before that should earlier check-in be available. Passengers are also advised to read the New Aviation Security Measures for Hand-Carried Luggage and pack their belongings appropriately, before arriving at the airport . Upon arrival at the airport, please refer to the Flight Information Boards and LCD Screens (conveniently located beyond the Departure Hall entryways) for your airline's check-in row information. Travels tips for departure Safety and security is a top priority for all air travellers. In line with international practices, all departing passengers will have to go through security checks at the airport. Check-in times and procedure

Passengers are advised to check in for their flights early. Most airlines start operating their Check-in counters at least 1 hours before flight departure. Before proceeding to the Checkin counters, have your own valid passport, valid visa if necessary and air ticket ready. If you have an e-ticket, bring along a print-out of your e-ticket. All checked baggage will be screened by airport security. Passengers should not pack any weapons, combustible items, explosive materials, toxic or other dangerous substances into their Check-in baggage. Passengers may be required to have their checked baggage undergo further security screening if deemed necessary. All passengers should check that they are issued with the correct boarding passes and that their travel documents are in order before leaving the Check-in counter. All departing passengers will have their travel documents checked by the security officers prior to entry into the departure immigration hall, as well as during immigration clearance. Please have your travel documents ready for inspection. To expedite clearance, passengers are requested to present their travel documents (ie. passport, boarding pass, etc.) to the

immigration officers. Some passengers may be required to have their hand-carried luggage screened at the departure immigration hall. All departing passengers should have their passport and boarding pass ready for inspection at the gate. All passengers are required to undergo security screening and have their handcarried baggage x-rayed. It is a universal practice that passengers are prohibited from carrying any potentially dangerous items on their bodies, in their clothing or in their handcarried baggage. Therefore, passengers should not have any sharp objects with them or in their hand-carried baggage (for example pocket knives, nail files, box cutters, razors, scissors, cockscrews, any sharp / pointed objects, etc.). If a passenger needs to carry such items for his or her trip, the items should be packed into the checked baggage. The security officers at the departure gate may confiscate any items deemed to be potentially dangerous either at their professional discretion or at the request of the airlines. Passengers with medical conditions who need to carry medical items such as needles or syringes in their hand-carried baggage should have with them and produce the appropriate medical advice. Passengers who wish to have fragile items manually inspected instead an of x-ray examination may make such request to the security screening officers.

6. Baggage

Cabin baggage allowance Airlines operating at Brunei International Airport allow economy class passengers to carry one (1) piece of cabin baggage weighing not more than 7kg (16lbs). In terms of size, the bag's length, breadth and height (including protrusion) must not exceed 115cm (46 inches) in total. This baggage will be screened before passengers aboard the plane. Passengers are advised to remove all security items from their cabin baggage before boarding their flights. For more information on cabin baggage allowance and security items, please check with your respective airlines.

Excess Baggage Most airlines allow up to a maximum of 20kg of baggage to be checked in. For baggage exceeding 20kg, you may choose to either air-freight it as unaccompanied baggage or pay an excess baggage charge.

7. Arrival
Immigration and customs Visitors to Brunei are advised to observe the Immigrations and Customs regulations. The Immigration Halls are at the ground floor. To get to a Hall, follow the sign Arrivals. There are two queuing areas - one is for Brunei nationals, the other for all other nationalities. Once at the counter an immigration officer will ask to see your passport and supporting documentation. Baggage (reclaim, lost/damaged)

Meeting passengers

8. Transit
Transfer information To check the connecting flight number, it is at the flight information screens for the departure gate and the time. You need to be proceeding to the gate at least 30 minutes before the departure time. For those who do not have a boarding pass, you need to proceed to the terminal where your connecting flight will be departed. Check-in at transfer lounges in the departure hall. Your baggage will automatically check into your connecting flight.

9. More about transportation services

To and from airport There are three transportation services that are available to get you from the airport to Bandar Seri Begawan. At the arrival levels, taxis will stop at the taxi pick-up points where it is estimated to cost between BND $10.00 and BND $20.00 and takes approximately 15 minutes. For the public bus service, it will go to the Bandar Seri Begawan. The first bus will arrive around 0600 hr and the last will leave at midnight. A single fare costs below BND $2.00 and takes about 30 minutes. Bus stops are located under arrival hall. For the car rental, it will be provided under car rental counters at the arrival halls; HERTZ SERI SENTOSA MARKETING & MANAGEMENT SDN BHD, tel: 8726000. Parking info In the airport, there are two public car parks to meet the needs of motorists. In front of the arrival terminal, lie an open-air park with approximately 200 car parks spaces and 50 motorcycle spaces. Another parking area is in front of the BIACC, an open-air car park with approximately 2,000 car park spaces and 600 motorcycle spaces. They are linked to the terminal and sheltered access. As for the cost of the parking area for the motor cars including vans is 0700hr till 2359hr, BND 0.50cents per 30 minutes.

10. Modernization of BIA Terminal

From an article,
Bandar Seri Begawan - As part of the Brunei International Airport's terminal modernization project, the Brunei Economic Development Board (BEDB) and the Department of Civil Aviation, Ministry of Communications have announced the partial closure of P1 parking from Thursday, December 15, 2011 According to a press release, the partial closure is part of the overall setting up of the project site by the contractor. The vacant car park area will be used for the construction of an interim "meeters and greeters" hall. The interim hall is meant to help ensure that passengers and the public are diverted away from the construction work zone.

The closure will affect approximately 50 car parking spaces, with barricades to be erected from the date onwards. Members of the public are reminded to follow directional signboards provided and to exercise due attention when entering the P1 car park. The BEDB recently awarded the project to Trans Resources Corporation Sdn Bhd/Swee Sdn Bhd Joint Venture to be completed within 36 months. The modernization project aims to improve the existing conditions and operations while creating an iconic visual image of the airport building. At the end of the project, it is envisaged that the overall look and feel of the airport will be 'modernized' with the introduction of an open concept of high ceiling space for the new departure and arrivals halls with highly improved security features and facilities such as access for people with special needs, additional retail areas and car parking Spaces. Parts in BIA that are going to be modernized: Departure Hold room - New finishes for floor, wall and ceiling - Skylights to roof - Extended retail and food and beverages areas - New washroom facilities and prayer rooms - New seats, flight and gate display panels Aerobridges - New finishes for enclosure of aerobridges - Upgraded control mechanism - New finishes for floor, wall and ceiling Baggage reclaim area - New baggage reclaim belts - New customs counters - New office space for security agencies Immigration counter - New sterile corridor for arriving passengers - New transfer area at arrival level with standalone security screening facilities - New immigration counter Arrival hall - New arrival hall - Extended arrival curbside - Glass and metal roof enclosure with air-conditioning facilities Automatic Check-in - Brunei International Airport will introduce the automatic check-in soon. At the moment the BIA carried out the trial process of the system. Project objectives - To create a landmark terminal serving as a main gateway into Brunei

To improve the airports environment and appearance To enhance both the public and passengers experience To improve security features and operations

BIAs Competitive Advantage

A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. It is the factor(s) that cause customers to patronize a firm and not the competition. There are three types of competitive advantages; cost, product/service differentiation and niche strategies. Under the cost competitive advantage, it is being the low-cost competitor in an industry while maintaining satisfactory profit margins. Cost leadership can result from obtaining inexpensive raw materials, creating an efficient scale of plant operations, designing products for ease of manufacture, controlling overhead costs, and avoiding marginal customers. A cost competitive advantage enables a firm to deliver superior customer value. Costs can be reduced by several ways such as experience curves, efficient labor, no-frills goods and services, government subsidies, product design, reengineering, production innovations and new service delivery methods. Product/service differentiation; the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitions. Some examples of product/service differentiation competitive advantage are brand names, stronger dealer network, product reliability, image and service. Niche competition advantage is the advantage when a firm seeks to get and effectively serve a single segment of the market. For small companies with limited resources that potentially face giant competitors, niche targeting may be the only viable option. A market segment that has good growth potential but is not crucial to the success of major competitors is a good candidate for developing a niche strategy. Many companies using a niche strategy serve only a limited geographic market. After an interview going with one of the management officers, it is concluded that BIA undergo the cost competitive advantage. Brunei Darussalam is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels per day (29,000m3/d). It also is the fourth-largest producer of liquefied natural gas in the world. Being the third-largest oil producer, it does not affect Brunei in economic if BIA sells the oil filling cheaper than Changi Airport, in Singapore and KLIA in Malaysia. It is one of the strategies of BIA in increasing the profits gain from other aircrafts rather than get the profits from the local aircrafts.

STATISTIC

Department of Civil Aviation

Aircraft Movement
16,000 14,000 12,000 10,000 8,000 6,000
10323 9,503 11836 10553 10209 10338

Scheduled

Non scheduled

Military
12021 9685

Chartered
13552

12386 11897

11565

4313

4,000
2,000 0
1138 107 1507 32 1827 63 2047 63

2825

21

11

2005
Source: Finance section, Department of Civil Aviation

2006

2007

2008

2009

2010

From the Department of the Civil Aviation, under the finance section; the statistic above shows the movement of aircraft in scheduled, non-scheduled, military and chartered within 6 years from 2005 until 2010. (2010 minus 2006) For the scheduled aircraft movement, it shows the increase of 30%, non-scheduled increase by 74%, for military, it is increase by 11% and for the chartered aircraft movement; it is decreasing to 90%. Movement in aircraft means that there is profit to be gain by BIA.

BIAs Portfolio Matrix

The portfolio matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company.

Placing products in the portfolio matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share) - use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. 2. Cash Cows (=low growth, high market share) - Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high - Foundation of a company 3. Dogs (=low growth, low market share) - avoid and minimize the number of dogs in a company. - beware of expensive turn around plans. - deliver cash, otherwise liquidate 4. Question Marks (= high growth, low market share) - have the worst cash characteristics of all, because high demands and low returns due to low market share - if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog.

- Either invests heavily or sells off or invests nothing and generates whatever cash it can. Increase market share or deliver cash. Where is BIA? A star, a cash cow, a dog or a question mark??? A management officer of BIA said that being the cheapest of providing oil for the aircrafts and the strategic location of the airport within the Southeast Asia (in central) lead to the stars in portfolio matrix even though most aeronautical services offered at BIA are homogenous with other airports in the world. It is where it generates large amounts of cash because of its strong relative market share, but also consumes large amounts of cash because of its high growth rate; therefore the cash in each direction approximately nets out. If BIA can maintain its large market share, it will become a cash cow when the market growth rate declines.

BIAs Current Marketing Mix

The term marketing mix refers to a unique blend of product, place, promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market. The marketing manager can control each component of the marketing mix, but the strategies for all four components must be blended to achieve optimal results. Any marketing mix is only as good as its weakest component. The heart of the marketing mix, the starting point, is the product offering and the product strategies. It includes physical unit, package, warranty, service, brand, image and value. Products can be tangible goods, ideas and services. Basically, for the current sources of the revenue at BIA are: Aircraft Landing and Parking charges. Leasing of space for retail and concession at passenger terminal. Leasing of land for aviation-related activities. Leasing of hangar buildings. Leasing of Flight Kitchen facility. Leasing of space for advertising. Leasing of airport facilities.

Current products/services available inside the BIA (arrival and departure hall): Banks Money changer Shops eg: Guardian, Bodyshop. Caf eg: Royce cafeteria. Fast food restaurants eg: Jolibee, KFC. Post office Telecom Airlines office Information counters Essential baggage protection ATM S/A check-in counters DCA airport management section DCA aviation security office Budget call Prayer room Tourist information and ETC.

Place, or distribution, strategies are concerned with making products available when and where customers want them. A part of this place is physical distribution, which involves all the business activities concerned with storing and transporting raw materials or finished products. The goal is to make sure products arrive in usable condition at designated places when needed. One of the current products available in BIA is souvenir shop located in the arrival hall. Since for majority users of the BIA they are generally are senders of the family/friends (from the survey taken for 420 people), they basically will buy some souvenirs for their friends and family members before they go to the other countries. It is a good strategy in distributing the products when BIA let souvenir shop to be operated in arrival hall since the consumers do not have to buy it from other shops outside the airport. Promotion includes advertising, public relations, sales promotion and personal selling. Promotions role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading and reminding them of the benefits of an organization of the products. The services available in BIA are such as DST counters and tourism information counters. Nowadays DST is busy in promoting their products in different places, one of the paces is in the BIA itself where they provide the leaflets and place it in front of their counters, the efficient way for the customers to take. This promotion strategy is basically targeted to the new comers so that they know what to use in Brunei rather than using public phones. Price is what a buyer must give up to obtain a product. It is often the most flexible of the four marketing mix elements-the quickest element to change. Marketers can raise or lower prices more frequently and easily than they can change other marketing mix variables. Price is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals total revenue for the firm. The current cost for the parking area in BIA is BND $1.00 per hour, from the survey taken for 420 people around Brunei, 55 of them say cheap, 26 say expensive and 124 say it is in between. Obviously, the pricing strategies are successful in a way that there is low amount of consumers unsatisfied with the price of parking area.

The environment factors that affect BIA

It is factors and forces outside marketing that affect marketing management ability to develop and maintain successful relationships with its target customers; external environment in which the organization operates and which influences decisions. The factors within the external environment that are important to marketing managers can be classified as social, demographic, economic, technological, political and legal, and competitive. Under social factors, it includes the attitudes, the values and the lifestyles. Social factors influence the product people buy, the prices paid for products, the effectiveness of specific promotions, and how, where, and when people expect to purchase.

The chart shows how often do the 420 selected users of BIA go to BIA
400 No. of people 300 200 100 0 Rarely Frequently All the time

Often go to BIA Rarely Frequently All the time

No. of people 307 86 16

The chart above tells the lifestyle of the selected customers where they are at most rarely to be in the BIA.

Chart showing with whom mostly the selected users to be with in BIA
300 No. of people 200 100 0 Alone Family Friends Colleagues

Usually go with Alone Family Friends Colleague

No. of people 56 280 150 34

Another chart shows that majority of the selected customers are preferred to be with family rather than alone, with friends or with colleagues. This is another lifestyles of the consumers need to be identify and analyze.

The chart shows how long do the selected customers to be in the BIA
300 No. of people 200 100 0 Less than an hour 1-2 hours 2-4 hours More than 4 hours

Time in BIA Less than an hour 1-2 hours 2-4 hours More than 4 hours

No. of people 130 220 50 8

Another lifestyle is that the 420 selected users of BIA mostly spent their 1 to 2 hours in the BIA. With the above charts it is concluded that lifestyles or also known as social factors influence the market in a way that, take for example about 73% of the selected BIAs users rarely to be in the airport, from this fact we need to identify and analyze why there are huge number of people that are rarely to be in the airport, what types of users are they, are they the one who will be in the airport only if the family members/friends are going to be out from Brunei and so on. This concluded that the BIA is affected by the social factors as proved by the three charts above. Another uncontrolled variable in the external environment also extremely important to marketing managers-is demography, the study of peoples vital statistics, such as their age, race and ethnicity, and location. Demographics are significant because the basis for any market is people. Demographic characteristics are strongly related to consumer buyer behavior in the market place.

Chart shows the amount of different ages of the 420 selected users of BIA
250 No. of people 200 150 100 50 0 18-25 years old 26-35 years old 36-50 years old above 50 years old

Age 18-25 years old 26-35 years old 36-50 years old above 50 years old

No. of people 233 116 54 15

The chart above basically showing us that majority of the Brunei people or majority of the BIAs users are age between 18 to 25 years old where they conquer 55% of the number of selected people. In general, the age above is called youth where this is a group of people that like to hang out together among them, socialize and mainly they have their own transport to go where ever they want. For this people, they will seek a place where they are comfortable with to be together example cinema, cyber, internet cafes and so on. We know that the fact; the majority of the Bruneian are age between 18 to 25, from this fact, to be a star in portfolio matrix, as a marketer we need to analyze, to study and produce a product in the BIA that they desire and need as mention above; place to gather. This also resulted in demographic factors affect BIA. In addition to social and demographic factors, marketing managers must understand and react to the economic environment. The three economic areas of greatest concern to most marketers are consumers incomes, inflation and recession.

The chart shows the no. of people varies with the income
200 150 100 50 0

Income Below $500 $500-$1000 $1000-$2000 $2000-$3000 $3000-$4000 Above $4000

No. of people 199 83 53 36 8 15

As disposable incomes rise, more families and individuals can afford the good life. The chart above shows the income of the BIAs users. The result of the chart is high amount of users have an income below $500. Low income lead to they only buy the products they need not they want/desire, i.e food, unbranded items and so on. But for the high incomers, logically the reasons for them to be in the airport are to travel. As at the below statistic states that there is an increase of passengers movement. Thus, economic factors also have impacts in BIA.

STATISTIC

Department of Civil Aviation

Passenger Movement
2,500,000 Passenger

2,000,000
1,553,338 1,554,886 1,628,629

1,929,362

1,500,000 1,000,000

1,402,123 1,261,380

1.5 MPPA Design Capacity

500,000
0 2005 2006 2007 2008 Year 2009 2010

Source: Department of Civil Aviation

The last factor that has impact in BIA is competitive factors. The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Management has little control over the competitive environment confronting a firm. BIA not only facing the competition between other airports such as KLIA and Changi Airport, they also face the competition among the services and the products that they provide i.e the shops, restaurants.

Below are the comparisons between Changi Airport in Singapore, KLIA in Malaysia and BIA in Brunei Darusslam. Some comparisons between Changi, KLIA and BIA Changi Singapore Changi Airport changiairport.com Public/Military Government of Singapore 22ft. Above sea level Changi Airport Group (s) Pte Ltd 1981 37,203,978 bus, rented car, shuttles and taxis yes Qan tas airlines 1,883,894 metric tonnes 37,694,824 -1% 80 KLIA Kuala Lumpur International Airport klia.com.my Public Government of Malaysia 71ft. Above sea level Malaysia Airports (sepang) Sdn Bhd 1998 29,682,093 bus, cars, taxis and trains yes Malaysia airlines 601,620 metric tonnes 27,529,355 8% 55 BIA Brunei International Airport dca.gov.bn Public Government of Brunei Barussalam 73ft/22m Department of Civil Aviation 1974 1,628,629 bus, taxis,cars and rented car yes Royal Brunei Airlines In the below statistic 1,554,886 4.50% 6

Airport Website Airport Type Owner of the Airport Elevation Operator Year (Opened) Total Passengers (2009) Ground Transportation International? Hub for Airport Cargo Traffic Previous Years Passengers vol (2008) Percentage change in previous passengers No. of Airlines

STATISTIC

Department of Civil Aviation

C a r g o M o v e m e nt ( i n KG )
16,000,000
14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0
2007/2008 (Apr'07 Mac'08) 2008/2009 (Apr'08 Mar'09)

Export
12,835,600

Import

Transit
12,695,610

14,982,124

7,660,490

7,996,800 7,254,650 4,994,400 5,105,482

1,269,810 525,810 719,280

2009/2010 (Apr'09 Mar'10)

635,089
2010/2011 (Apr'10 Mac'11)

Source: Finance section, Department of Civil Aviation

The interview undergo with one of the users in BIA, Nur Ariffin, 21, policeman regarding the shops, services and the facilities provided in BIA. He stated that, why he needs to go to buy some products such as Bodyshops products where he can actually get it easily in The Mall since his house is located nearer to The Mall. He suggested, for the customers to differentiate and willing to give the purchase to the shops in the BIA, BIA; the shops itself need to produce some products that are not yet being introduce to some other shops outside the BIA.

SWOT Analysis BIA is currently in

Generally, the word SWOT referred to, the firm should identify its internal strengths and weaknesses, also examine external opportunities and threats. For internal strengths and weaknesses, it focuses on organizational resources e.g: production costs, marketing skills, financial resources, company or brand image, employee capabilities, and available technology. Under internal strengths of BIA, the current things that BIA does well; being the only terminal in Brunei Darussalam is the main strength of BIA. It conquers the whole profits gain from the movement in and out of the aircrafts and also the profits in the current sources of the revenue at BIA; Aircraft Landing and Parking charges, leasing of space for retail and concession at passenger terminal, leasing of land for aviation-related activities, leasing of hangar buildings, leasing of Flight Kitchen facility, leasing of space for advertising and leasing of airport facilities. BIA also gains the strength via marketing skills. Since BIA know the behavior of the users; as passengers/senders, most of them will purchase some of the souvenirs to be given, thus BIA provided souvenir shops for these particular users. Another marketing skill is that since in the BIA there is only two paid parking area, thus the users will only park their cars in that particular area, another words to describe it are they; the users will pay whatever payment stated for the parking fees. BIA is owned by the government and operated by the Department of Civil Aviation. Owning by the government, BIA has a good reputation and brand image. That is another internal strength of BIA. And for the weaknesses, basically it is the thing that the company (BIA)does not do well. Such as, available technology. Below is the statistic showing that where does the users get the information/hear the updates/news about BIA.

Graph showing the different types of materials use to hear news/updates

250 200 150 100 50 0 No. of people

Material use Internet Directory Newspaper Radio Brochure/Billboards Travel Agency Family/Friends Social Media

No. of people 218 25 206 133 23 61 158 112

The highest number of people using the materials above is they get the information from the internet follow by the newspaper and by friends/family. This shows that the weaknesses of BIA, where they (the workers) do not use the technology provided to expand the business such as, nowadays facebook is the most main social media that the users currently use as stated on the graph below, but still BIA havent has one. This also notices that BIAs employees really havent get the capabilities in handling the management and the market around the BIA, especially in noticing that the shops that are rented in the BIA are having net lost due to less and less people are shop in BIA

The Chart shows the different social media use by the users
400 350 300 250 200 150 100 50 0

Social media use Facebook Twitter Rano Adidas Tumblr Blogspot Youtube Others

No. of people

No. of people 364 115 40 21 52 152 45

Under external opportunities and threats; analyze aspects of marketing environment, process called environmental scanning-the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. With this it helps identify market opportunities and threats and provides guidelines for the design of marketing strategy. There are 6 macroenvironmental

forces as stated in environment affects BIA, they are social, demographic, economic, technological, political and legal and competitive. Under the opportunities, In investment opportunities: 1. 2. 3. 4. 5. 6. 7. Aircraft Maintenance, Repair & Overhaul Cargo Village Ground Handling Services CIP services Flying School Airport Retail & Concession Management & Maintenance of airport facilities.

Opportunities ahead: Modernization of Brunei International Airport Positive Outlook of Travel & Tourism Industry Growth of Low-Cost Carriers To overcome the threats, more shops will be produce in order to fulfill the needs and the desires of the users. The better and cheaper shops, the ones that mostly the users want it to be in the airport. Below are the graph to show the most wanted product would they like to be introduces in BIA.

The chart to show the products that the users prefer to be in BIA
2000 1500 1000 500 0 No. of People

Types of Product Rest and Relaxation Entertainment Food and Beverages Family Business Others

No. of people 543 760 1146 907 443 1714

For the rest and relaxation, it consists of spa, massage, sauna and massage chair. For entertainment, arcade, bowling, pool snooker, cinema and internet caf, for food and beverage, it includes fastfood, various cuisine, caf, branded coffee house, healthy choice, bakery and ice cream. For family, it contains childs day care, playground/garden and quite areas. For business; meeting rooms, hall and telephone/fax services. And lastly for others, it includes clothing, sports, gift shops, skin care products, florist, bookstore, fashion accessories, baby product shop, branded goods, perfumes, computer, toys. For others, basically shopping in general. With the above facts, now the marketers of BIA, knows what should and shouldnt be in the airport. This fact actually helps to produce the effective products and low risk in productions.

Market Research Design

Marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision. The result of this analysis is then communicated to management. Thus, marketing research is the function that links the consumer, customer, and public to the marketer through information. Marketing research plays a key role in the marketing system. It provides decision makers with data on the effectiveness of the current marketing mix and also with insights for necessary changes. Marketing research has three roles: descriptive, diagnostic, and predictive. Its descriptive role includes gathering and presenting factual statements. Its diagnostic role includes explaining data and lastly, its predictive function is to address what if questions. There are seven steps towards the marketing research process. 1. Identify and formulate the problem/opportunity 2. Plan the research design and gather primary data 3. Specify the sampling procedures 4. Collect the data 5. Analyze the data 6. Prepare and present the report 7. Follow up Our teams core service is providing advise and consultation in identifying the various users of the airport. This initiative hopes to recommend the right package of products/services in line with a clear understanding of the users buyer behavior. In the case of BIA, the manager received feedback from their Board Meeting regarding the arrival and departure terminal in reflection to the modernization project. There is a need to ensure increase revenue coming from the mentioned terminals as both are areas where it is easily accessible to the local population else than transit passengers.

Below are some questions that need to be answer in order to achieve the aims successfully. 1. What are the right services/shops/products should be in BIA 2. What kind of users in the airport? 3. What are they actually done in the airport? 4. What do them really desire, need or demand to be in the airport? 5. Are they satisfy with the current facilities/services/products/shops existing in the airport? Before we start to answer those questions, we need to identify the problems face by the BIA. What problem? Different people have their own need, desire, thus with this fact we need to understand the behavior of the users of BIA Less advertisement about BIA, why? Incapable employees or the users are not updated with the current advertisement. The external environments that influence the market Under ansoff matrix, there are market penetration, product development, market development and market diversification. Question; expand or not the existing marketing mix??? Small number of shops, why? Smaller space in arrival and departure. And so on.

How do I ensure management will use my proposed marketing strategy as their chosen successful decision making? Via survey, where the data collected from the survey are going to be analyze and present it in charts thus will answer all the questions above and give information what to be produces, how to produce, when and where to produce and what to use as promotional skills. Below are the survey made by compiling few groups of marketers into one survey and this survey will be given to 420 selected BIA users from different types of places. We have chosen to give the surveys to the people in Yayasan, Bandar Seri Begawan. Some of the marketers will be in The Mall Gadong, Giant Gimba, Times Square Berakas, Manggis Mall. As for the sampling procedure, our group has chosen to select the users in simple random sample, where we choose the people in the Yayasan randomly and ask them to answer our survey. The aims for this research via survey are to understand the consumers behavior in detail, not only from observing them but to have marketing relationship with them. What do we get from the survey will determine whether or not for us to continue with the plan to provide more shops in BIA.

~~Ur pie chart will answer about the segmentation, the target market, I told u dah kan at the beginning that im not focusing on recommendations and reasons~~

Resources: mohd iman, marketing officer of bia, borneo bulletin, www.bedb.com.bn, dca.gov.bn, http://airports.fingthebest.com/compare/22-41/singapore-changi-airport-vs-kuala lumpurinternational-airport#, http://en.wikipedia.org/wiki/economy-of-brunei