AIRPORT MARKETING PROPOSAL

1. What type of marketing, advertising, and/or promotional programs should

be developed a) for a new terminal and b) for the airport?

The new terminal for QMIA is an enormous initiative; this is a wonderful opportunity for
QMIA to create and market a new brand mission that portrays itself as a safe and
exciting first class international airport that welcomes travelers to economic and tourist
destinations. This will require a comprehensive promotional marketing mix that covers
personal selling, non-personal selling, advertising, public relations, and publicity.

SWOT analysis shows the strategic advantage in the areas of originating and
destination market, affluent local demographics, local climate, tourism, and multinational
businesses.

The marketing strategy is linked to QMIA’s mission, vision, master plan, business plan,
and capital improvement plan. Marketing and promotions are ongoing activities and
depend on utilizing the right people with the drive and talent to produce results. A
comprehensive employee training program and use of consultants in specific areas will
be required.

Investors will pay close attention to the marketing strategy. An effective strategy will
attract investors.

The physical strategy is linked to the marketing message where passengers’ initial
impressions as they walk into the terminal are consistent with the airport’s brand that is
being promoted. Passenger survey will be done on a regular basis to address any gaps.

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Surveys will evaluate concessionaire staff, passenger waiting rooms, décor, cleanliness,
and every single visual element of an airport.

The marketing plan is strategic in nature, with tactical implementation.

QMIA New Terminal Marketing Plan

Airport Mission

To develop a new, profit-oriented terminal that maximizes non-aeronautical revenue and

ranks in the top 10% for customer service at comparable airports, while enhancing the
overall image of the local region.

Airport Objectives

- The terminal shall provide a full range of high-quality retail, food and beverage, and
service choices that respond to the needs and wants of a variety of customers.

- Airlines charges will be in-line with ICAO guidelines for similar airports.

- Concession sales and revenue will be in-line with the upper quartile of comparable
airports with new terminals.

- Market-level return on all capital investments.

Marketing Objectives

To support marketing strategy, based on a promotional and marketing mix that

addresses airport objectives and the overarching airport mission.

Airport Environment

Economic Environment

The strength of the local origination and destination market is growing due to a
projected increase in affluent local market demographics and projected passenger
growth of 4.5% a year for the next 10 years. The economic environment is healthy

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enough to support the plan for a new terminal and the need for high quality
concessions.

- Increasing popularity of the region as a tourist destination.

- Affluent local market demographics.

Societal/Cultural Environment

Research shows a favorable local climate for a modern international terminal. Part of
the marketing strategy will be to promote local cultural products and services.
Community meetings will be held to ignite interest for advertisements in business
magazines, aviation publications etc.

Competitive Environment

Given that there is another airport within 300 km of QMIA, the planned concessions will
be unique and comprehensive, to make sure that the new terminal stands out. The
concession program and marketing material created will highlight the competitive
advantages of the new terminal.

Political and Legal Environment

After having reviewed the various privatization options, the government has decided to
create an independent corporation to operate the airport, that will be overseen by a
Board of Directors consisting of seven appointed members. All the stakeholders will be
involved in deciding the international brand concessions at the new terminal. The local
business leaders will be given the opportunity to participate in the new concession plan.

The appropriate ordinances, rules, and regulations will be addressed and negotiated to
achieve the overarching goals.

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Technological Environment

In order to compete with the top 10% comparable airports, a free wireless Internet will
be offered at the new terminal. Full-wall displays, information kiosks, and state-of-the-art
public announcement systems with noise-adaptive volume controls, will be introduced.
Airport applications for smartphones will be developed to provide easy accessibility for
passengers and promote various products and services at the airport.

Market Segmentation

Geographic segmentation includes 3.5 million people in the region, who will be
addressed by QMIA. All products and services that will compete with concessions at the
new terminal will be addressed, including shopping centers. The advertisement and
promotional plans will include the geographic segmentation and placement of billboards.
The products and services will cater to the needs and wants of travelers from this
region.

Based on SWOT analysis, psychographic, demographic, and benefit segmentation

marketing will be utilized in order to cater advertising to the local affluent population.
Advertisements will promote new airport lounges, and provide support to airlines that
may not be in a position to have their own lounge.

Marketing Mix Strategies

Product Strategy

The types of concessions will be based on the fact that nearby communities are
affluent. There is projected growth for travelers in all areas: tourism, leisure, family, and
business. The product strategy will include the competition in the geographic segment.
Product lifecycle and the characteristics of the spaces available will be illustrated
through drawings, exhibits, description of the facility, maps, etc. New concession design
guidelines will be provided using Airport Concession Publication.

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Price Strategy

Competitive pricing also referred to as street pricing will be used where the pricing may
not exceed more than 10% that is available at the shopping malls in the area. This
information will be provided in Airport Concession Publication.

Place Strategy

Meetings will be held with business partners, community members, and existing
concessionaires to provide information about concession opportunities. A Request for
Proposal (RFP) will be issued to invite additional business partners.

Promotion Strategy

Targeted advertising and broadcast media options will be used to communicate

information to businesses, concessionaires, and the community regarding opportunities
available at the airport.

Advertising

Industry magazines, newspapers, social medial, and retail conventions will be utilized to
advertise opportunities for concessionaires.

Public Relations

Community and business-oriented publications and handouts will be created and

provided at various community-based meetings.

Publicity

To help publicize and create favorable stories about the new terminal, local
newspapers, magazines, television, and radio reporters will be invited to a press
conference, which will include an airport walk-through and press kits.

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Should the airport financially to promote new airlines routes and services?

QMIA customer activity forecasts, that illustrate passenger growth market

demographics, will be used to court both flag carriers and LCC, to provide service at the
new terminal. Incentive programs, such as free Common Use check-ins, gate counters,
and kiosks, will be provided by the airport; the cost of these incentives will be covered
using non-aeronautical revenue.

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