A study on internal perspectives of marketing strategy implemented by ktdc
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Marketing is often thought of only as promotion of products, especially advertising and branding. However it has wider meaning which recognises that it is customer centered. A review of the literature ...

Marketing is often thought of only as promotion of products, especially advertising and branding. However it has wider meaning which recognises that it is customer centered. A review of the literature reveals that marketing strategy is important for all company. Marketing strategy is a process that allows an organisation to concenterate its resources on optimal opportunities with goal of increasing sales and achieving suitable competitive advantage.The project work
is conducted in Kerala Tourism Development Corporation (KTDC) at Mascot square, Trivandrum. KTDC uses a marketing strategy whose e ectiveness is un-
certain. The primary objective of this study is to evaluate the marketing strategy of KTDC from employees perspective. For the study a questionnaire was made
based on the variables like brand, market, messages, marketing channels, marketing tactics, marketing campaign, sales tools and website. From the study it is
found that KTDC uses a less e ective marketing strategy which needs to be modi ed. The recommendations provided will give KTDC a framework for making new marketing plan.

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A study on internal perspectives of marketing strategy implemented by ktdc Document Transcript

  • 1. A Study on Internal Perspective of Marketing Strategies Implemented by KTDC Project report submitted in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration of the University of Kerala Submitted by: Belli P K DEPARTMENT OF BUSINESS ADMINISTRATION COLLEGE OF ENGINEERING TRIVANDRUM July 2013
  • 2. DEPARTMENT OF BUSINESS ADMINISTRATION College of Engineering Trivandrum 2013 CERTIFICATE This is to certify that the report titled “A Study on Internal Perspective of Marketing Strategies Implemented by KTDC” being submitted by Belli P K in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration, is a bonafide record of the project work done by Belli P K at College of Engineering Trivandrum. Dr. Chandramohan Director Dr. D Bijulal Professor
  • 3. Declaration I undersigned, hereby declare that the project titled “A Study on Internal Perspective of Marketing Strategies Implemented by KTDC” submitted in partial fulfilment for the award of Degree of Master of Business Administration of the University of Kerala is a bonafide record of work done by me under the guidance of Dr. D Bijulal, Department of Business Administration, College of Engineering Trivandrum. This report has not previously formed the basis for the award of any degree, diploma, or similar title of any other university. Belli P K
  • 4. Acknowledgements I wish to record my deep sense of gratitude and profound thanks to my guide Dr D Bijulal, Professor, Department of Business Administration, College of Engineering Trivandrum for his guidance and help through out the period of this project work. At this juncture I accord my deep sense of thanks and gratitude to Dr Chandramohan, Director and HOD for his valuable direction enabling me to complete this project. I take this opportunity to express my sincere thanks to Mr Rajmohan G S, Marketing manager, KTDC for giving me an opportunity to do the project in their esteemed organisation. I express my ultimate gratitude to God Almighty who has been an instrument for enlightening me on academic venture. Last but not the least I take this opportunity to thank my parents and friends who helped me in making this endeavor a success. Belli P K i
  • 5. Abstract Marketing is often thought of only as promotion of products, especially advertising and branding. However it has wider meaning which recognises that it is customer centered. A review of the literature reveals that marketing strategy is important for all company. Marketing strategy is a process that allows an organisation to concenterate its resources on optimal opportunities with goal of increasing sales and achieving suitable competitive advantage.The project work is conducted in Kerala Tourism Development Corporation (KTDC) at Mascot square, Trivandrum. KTDC uses a marketing strategy whose effectiveness is uncertain. The primary objective of this study is to evaluate the marketing strategy of KTDC from employees perspective. For the study a questionnaire was made based on the variables like brand, market, messages, marketing channels, marketing tactics, marketing campaign, sales tools and website. From the study it is found that KTDC uses a less effective marketing strategy which needs to be modified. The recommendations provided will give KTDC a framework for making new marketing plan. Keywords: marketing strategy, marketing strategy evaluation, management perspective , KTDC marketing strategy. ii
  • 6. Contents Page List of Tables vii List of Figures viii 1 Introduction 1.1 Background of the problem . . . . . . 1.2 Industry profile . . . . . . . . . . . . 1.2.1 Tourism in India . . . . . . . 1.2.2 Tourism in Kerala . . . . . . . 1.3 Introduction to the company . . . . . 1.3.1 Mission . . . . . . . . . . . . 1.3.2 Vision . . . . . . . . . . . . . 1.3.3 Key objectives . . . . . . . . . 1.3.4 Brands and products . . . . . 1.4 Research methodology . . . . . . . . 1.4.1 Objectives of study . . . . . . 1.4.2 Research design . . . . . . . . 1.4.3 Sources of data . . . . . . . . 1.4.4 Statistical analysis tools used 1.4.5 Period of study . . . . . . . . 1.4.6 Hypothesis . . . . . . . . . . . 1.4.7 Scope of study . . . . . . . . 1.4.8 Limitation of study . . . . . . 1.5 Chapterisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2 3 5 7 8 9 9 10 12 14 14 14 15 15 15 16 17 17 2 Literature review 18 2.1 Marketing mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.2 Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 19 iii
  • 7. 2.2.1 Geographical segmentation . . . . . . . . . . . . . . . 2.2.2 Demographic segmentation . . . . . . . . . . . . . . . 2.2.3 Psychographic segmentation . . . . . . . . . . . . . . 2.2.4 Behavioral segmentation . . . . . . . . . . . . . . . . 2.3 Relationship marketing . . . . . . . . . . . . . . . . . . . . . 2.4 Introduction to marketing strategy . . . . . . . . . . . . . . 2.5 Marketing strategy . . . . . . . . . . . . . . . . . . . . . . . 2.5.1 3 Cs of marketing strategy . . . . . . . . . . . . . . . 2.6 Strategic role of marketing . . . . . . . . . . . . . . . . . . . 2.7 Elements of marketing strategy . . . . . . . . . . . . . . . . 2.8 Types of marketing strategy . . . . . . . . . . . . . . . . . . 2.8.1 Position defense . . . . . . . . . . . . . . . . . . . . 2.8.2 Mobile defense . . . . . . . . . . . . . . . . . . . . . 2.8.3 Flank position . . . . . . . . . . . . . . . . . . . . . . 2.8.4 Counter offensive . . . . . . . . . . . . . . . . . . . . 2.8.5 Preemptive defense . . . . . . . . . . . . . . . . . . . 2.8.6 Contraction defense . . . . . . . . . . . . . . . . . . . 2.9 Marketing strategy formulation . . . . . . . . . . . . . . . . 2.10 Marketing strategy implementation . . . . . . . . . . . . . . 2.10.1 Management involvement in strategy implementation 2.10.2 8S framework of strategy implementation . . . . . . . 2.11 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 20 20 21 21 22 23 23 25 26 26 26 27 27 27 27 28 29 29 30 31 3 Data Collection and Analysis 3.1 Percentage Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.1 Gender wise classification . . . . . . . . . . . . . . . . . . . 3.1.2 Age wise classification . . . . . . . . . . . . . . . . . . . . . 3.1.3 Qualification wise classification . . . . . . . . . . . . . . . . 3.1.4 Experience wise classification . . . . . . . . . . . . . . . . . 3.1.5 Income wise classification . . . . . . . . . . . . . . . . . . . 3.1.6 About the clarity in communication . . . . . . . . . . . . . . 3.1.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . 3.1.8 Awareness about profitable customers . . . . . . . . . . . . . 3.1.9 Awareness about customers changing buying behavior . . . . 3.1.10 Opinion on up-selling and cross selling . . . . . . . . . . . . 3.1.11 Key marketing messages that is consistently delivered in media 3.1.12 Experience customers have while interacting with employees 33 33 34 35 36 37 38 39 40 41 42 43 44 45 iv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 8. 3.2 3.3 3.4 3.1.13 Targeting of messages to specific market segments . 3.1.14 Opinion on shifting marketing to new channels . . . . 3.1.15 Opinion on maximizing the value . . . . . . . . . . . 3.1.16 Opinion on marketing tactics . . . . . . . . . . . . . 3.1.17 Integration of social media into traditional marketing 3.1.18 Opinion on creativity used . . . . . . . . . . . . . . . 3.1.19 Clarity of marketing materials used . . . . . . . . . . 3.1.20 Resonance of offers . . . . . . . . . . . . . . . . . . . 3.1.21 Effectiveness of offers . . . . . . . . . . . . . . . . . . 3.1.22 Role of offers in the product value . . . . . . . . . . . 3.1.23 Sales brochure attributes . . . . . . . . . . . . . . . . 3.1.24 Integration of sales tools . . . . . . . . . . . . . . . . 3.1.25 About the need of new tools . . . . . . . . . . . . . . 3.1.26 About the capturing of customer and prospect data . 3.1.27 About the compiling of email address . . . . . . . . . 3.1.28 About the website . . . . . . . . . . . . . . . . . . . 3.1.29 SEO of website . . . . . . . . . . . . . . . . . . . . . 3.1.30 Focusing of marketing campaigns . . . . . . . . . . . Chi Square test . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.1 Test of independence . . . . . . . . . . . . . . . . . . 3.2.2 Test of Goodness of Fit . . . . . . . . . . . . . . . . . Correlation Coefficient . . . . . . . . . . . . . . . . . . . . . Weighted Average Method . . . . . . . . . . . . . . . . . . . 4 Findings and Suggestions 4.1 Findings . . . . . . . . . . . . . . . . . . . . . . 4.1.1 Demographic profile . . . . . . . . . . . 4.1.2 Findings related to marketing strategies 4.2 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 64 67 69 71 . . . . 73 73 73 73 77 5 Conclusions 81 References 83 v
  • 9. List of Tables Table Page 1.1 Industry profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 Gender wise classification . . . . . . . . . . . . . . . . . . . . Age wise classification . . . . . . . . . . . . . . . . . . . . . . Qualification wise classification . . . . . . . . . . . . . . . . . Experience wise classification . . . . . . . . . . . . . . . . . . Income wise classification . . . . . . . . . . . . . . . . . . . . . About the clarity in communication . . . . . . . . . . . . . . . Usage of brand identity . . . . . . . . . . . . . . . . . . . . . . Awareness about profitable customers . . . . . . . . . . . . . . Awareness about customers changing buying behavior . . . . . Opinion on up-selling and cross selling . . . . . . . . . . . . . Key marketing messages that is consistently delivered in media Experience customers have while interacting with employees . Targeting of messages to specific market segments . . . . . . . Opinion on shifting marketing to new channels . . . . . . . . . Opinion on maximizing the value . . . . . . . . . . . . . . . . Opinion on marketing tactics . . . . . . . . . . . . . . . . . . Integration of social media into traditional marketing . . . . . Opinion on creativity used . . . . . . . . . . . . . . . . . . . . Clarity of marketing materials used . . . . . . . . . . . . . . . Resonance of offers . . . . . . . . . . . . . . . . . . . . . . . . Effectiveness of offers . . . . . . . . . . . . . . . . . . . . . . . Role of offers in the product value . . . . . . . . . . . . . . . . Sales brochure attributes . . . . . . . . . . . . . . . . . . . . . Integration of sales tools . . . . . . . . . . . . . . . . . . . . . About the need of new tools . . . . . . . . . . . . . . . . . . . About the capturing of customer and prospect data . . . . . . About the compiling of email address . . . . . . . . . . . . . . About the website . . . . . . . . . . . . . . . . . . . . . . . . SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . . Focusing of marketing campaigns . . . . . . . . . . . . . . . . Contingency Table . . . . . . . . . . . . . . . . . . . . . . . . Observation Table for Hypothesi 1 . . . . . . . . . . . . . . . . Analysis Table . . . . . . . . . . . . . . . . . . . . . . . . . . . vi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 67
  • 10. 3.34 3.35 3.36 3.37 χ2 goodness-of-fit test for observed counts in Observation Table . . . . . . . . . . . . . . . Attribute Response Table . . . . . . . . . . Weighted Average of Attributes . . . . . . . vii variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 70 71 72
  • 11. List of Figures Figure 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 Page Gender wise classification . . . . . . . . . . . . . . . . . . . Age wise classification . . . . . . . . . . . . . . . . . . . . . Qualification wise classification . . . . . . . . . . . . . . . . Experience wise classification . . . . . . . . . . . . . . . . . Income wise classification . . . . . . . . . . . . . . . . . . . . About the clarity in communication . . . . . . . . . . . . . . Usage of brand identity . . . . . . . . . . . . . . . . . . . . . Awareness about profitable customers . . . . . . . . . . . . . Awareness about customers changing buying behavior . . . . Opinion on up-selling and cross selling . . . . . . . . . . . . Key marketing messages . . . . . . . . . . . . . . . . . . . . Experience customers have while interacting with employees Targeting of messages to specific market segments . . . . . . Opinion on shifting marketing to new channels . . . . . . . . Opinion on maximizing the value . . . . . . . . . . . . . . . Opinion on marketing tactics . . . . . . . . . . . . . . . . . Integration of social media into traditional marketing . . . . Opinion on creativity used . . . . . . . . . . . . . . . . . . . Clarity of marketing materials used . . . . . . . . . . . . . . Resonance of offers . . . . . . . . . . . . . . . . . . . . . . . Effectiveness of offers . . . . . . . . . . . . . . . . . . . . . . Role of offers in the product value . . . . . . . . . . . . . . . Sales brochure attributes . . . . . . . . . . . . . . . . . . . . Integration of sales tools . . . . . . . . . . . . . . . . . . . . About the need of new tools . . . . . . . . . . . . . . . . . . About the capturing of customer and prospect data . . . . . About the compiling of email address . . . . . . . . . . . . . About the website . . . . . . . . . . . . . . . . . . . . . . . SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . Focusing of marketing campaigns . . . . . . . . . . . . . . . Chart of observed and expected values . . . . . . . . . . . . Chart of contribution to chi-square value by category . . . . viii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 66 69
  • 12. Chapter 1 Introduction There are numerous definitions for marketing and what constitutes a marketing strategy. Often marketing is thought of only as the promotion of products, especially advertising and branding. However, marketing has a wider meaning which recognizes that it is customer centered. A marketing strategy is the business approach to promote its products and services expressed in broad terms. A marketing strategy, in turn, forms the basis of the marketing plan. The marketing plan contains the set of specific activities required to successfully implement a marketing strategy. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.
  • 13. A final step is to create a plan to monitor the progress and to set alternative plans if a problem arises during the implementation of the plan. 1.1 Background of the problem KTDC has been playing a key role in the development of infrastructure facilities required by the rapidly growing tourist traffic into the State of Kerala and has been the prime mover in the progressive development, promotion and expansion of tourism in the State. Apart from developing the largest hotel chain in Kerala, KTDC offers tourism related facilities like conducted tours, boating, tourist reception centers, centralized/online reservations, conventional services, customized tour packages etc. KTDC uses marketing campaigns, brochures, social media marketing etc to market its products. KTDC also gives training to employees so that a standardized service is given for its customers. This is done as a part of internal marketing. KTDC uses a marketing strategy which is distinctive from its competitors. But how far the marketing strategy is effective is uncertain. This project evaluates the efficacy of marketing strategy of KTDC and thereby suggesting a suitable marketing plan. 1.2 Industry profile Tourism is considered as an agent of social change bridging gaps among nations, regions and people and helping them to open up. It is a promoter of development- material and spiritual both at macro and micro level. The World Tourism Organization defines tourists as people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. Table 1.1: Industry profile Output per annum Increased 7 % per annum Percentage in world market 6.5% share Market Capitalization 6.23% of GDP Tourism is important, and in some cases, vital for many countries. It was recognized in the Manila Declaration on World Tourism of 1980 as an activity essential to the life of nations because of its direct effects on the social, cultural, 2
  • 14. educational, and economic sectors of national societies and on their international relations. Tourism brings in large amounts of income in payment for goods and services available, accounting for 30% of the world’s exports of services, and 6% of overall exports of goods and services. It also creates opportunities for employment in the service sector of the economy, associated with tourism. These service industries include transportation services, such as airlines, cruise ships, and taxicabs; hospitality services, such as accommodations, including hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping malls, music venues, and theaters. 1.2.1 Tourism in India India is the second-fastest growing tourism market in the world. Tourism in India is the largest service industry contributing up to 6.23 per cent to the National Gross Domestic Product (GDP) and providing 8.78 per cent of the total employment opportunity in India. It is also the second largest sector in country providing employment opportunities for low skilled people. India’s travel and tourism industry is one of the most profitable industries in the country. It is also credited with contributing a substantial amount of foreign exchange to the exchequer. Indian is a land of vast tourism opportunities as it is comprised of different cultures, traditions, festivals, and places of interest. The country is one of the favorite tourist destinations around the world, according to world travel and tourism Council (WTTC). Further, the Travel and Tourism Competitiveness Report by World Economic Forum, has ranked India at the sixth place in tourism and hospitality. India provides the facility to Tourists of international origin to understand and experience cultural diversity of the country. According to Indian official estimates the tourism in India has outperformed the global tourism industry in accordance with the growth, volume of foreign tourists & even the revenue. India witnesses about more than 5 million annual foreign tourist arrivals and 562 million domestic tourism visits. Indian Tourism Industry generated about US$100 billion in 2008 which is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Campaign of ”Incredible India” is developed by the Ministry of Tourism is used for the promotion of tourism in India. 3
  • 15. Tourism products offered by India 2. 3. 4. 5. 6. 7. 8. 9. 1. Cruise tourism Adventure tourism Medical tourism Wellness tourism Golf tourism Polo tourism Meetings incentives conferences and exhibition Film tourism Eco tourism Domestic media campaigns, international campaigns, national tourism awards, international accolades, participation in travel fairs and exhibition, road shows, food festivals, printing of brochures, outdoor publicity by advertising on taxis, buses, trains, hoardings and billboards are some of the publicity and marketing techniques adopted by Ministry of tourism, Government of India. Each state further has its own publicity and marketing techniques. Eg: Kerala- Gods own country campaign, Madhyapradesh- Hindusthan ki dil dekho campaign etc Role of Ministry of Tourism The Ministry of Tourism plays a crucial role in formulating national policies and programs as well as coordinating and supplementing the efforts of the State/Union Territory Governments and private sector in improving the quality of tourism Industry. As regards the domestic market, the Ministry aims to popularize the culture and natural beauty of different regions, pilgrim sites and various new tourism products. The Ministry has a public sector undertaking namely the India Tourism Development Corporation (ITDC) for carrying out its various functions, along with the following autonomous institutions:1. Indian Institute of Tourism and Travel Management (IITTM) 2. National Institute of Water Sports (NIWS) has merged with IITTM 4
  • 16. 3. National Council for Hotel Management and Catering Technology (NCHMCT) 4. Institutes of Hotel Management (IHM) The foreign direct investments (FDI) of Indian hotel and tourism industry which contributes to the Indian economy inflows are US$ 2.1 billion from April 2000 to March 2010, according to the Department of Industrial Policy and Promotion (DIPP).Indian Export earnings from international visitors and tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2019. Furthermore, the sector which accounted for 6.4% of total employment in 2009 is estimated to rise to 7.2% of total employment by 2019. Tourism industry in India holds tremendous potential for India’s economy which eventually provide impetus to other industries, create millions of new jobs and generate enough wealth to help pay off the international debt. This is the main reason that today it is included that Tourism is amongst the Core Sectors of the Indian Economy. Indian Tourism Industry has got a major boost because of the booming IT and outsourcing industry with increased number of business trips made by foreigners to India, who will often add a weekend break or longer holiday to their trip. They spend more time here in India than almost any other country worldwide. 1.2.2 Tourism in Kerala Kerala state is considered as one of the ten paradises in the world. In more ways than one, Kerala takes the credit for being the first state in India to comprehend the significance and importance of positioning and branding in the sphere of tourism. From being a non entity in the mid 1980s, Kerala today has evolved into an Indian tourisms superbrand and the countrys most premium holiday destination. Keralas worldwide success represents the triumph of vision, professionalism and public private partnerships in the volatile and turbulent world of tourism. Brief history Kerala initiated tourism development programmes by establishing an international beach resort at Kovalam in 1976 with the patronage of the central government. Realizing the economic potentials, Government of Kerala declared 5
  • 17. tourism as an industry in 1986. Within a short span of two and half decades, Kerala succeeded in establishing its tourism brand in the international market. The first tourism policy of the state was announced in 1995 underlining the importance of Public Private Partnership. Tourism has come a long way since then, capturing new markets with its innovative products and marketing strategies. From hardly 50000 foreign tourist arrivals and 0.13 billion rupees as foreign exchange in 1986, it has reached a status of 0.6 million foreign tourist arrivals and 37.97 billion rupees as foreign exchange in 2010. Total employment generated from tourism is estimated as 1.2 million. Tourism development organisations The flagship of tourism industry in Kerala is Department of tourism, Government of Kerala. Kerala Tourism Development corporation (KTDC), Bekal Resorts Development Corporation (BRDC), Tourists Resorts Kerala Ltd (TRKL), District Tourism Promotion Council (DTPC), Kerala Institute of Travel and Tourism Management Studies (KITTS), Kerala Institute of Hospitality Management Studies (KIHMS), Thenmala EcoTourism Development Agency and a host of Government Departments such as forest and wildlife, irrigation, museum, zoo and archaeology are other important state sponsored institutions which play key role in Tourism sector of Kerala. Besides there are numerous agencies working in the semigovernment and private sectors for the promotion of Kerala Tourism. Role of KTDC in tourism development KTDC plays a prominent role in tourism sector of Kerala. Kerala had been an unknown destination till 1980s. The aggressive marketing of KTDC laid foundation for growth of tourism industry and transformed Kerala into one of niche holiday destination. The tag line Kerala Gods own country used in its promotions became a global super brand. Gods own country is perhaps the most powerful positioning statement for an Indian destination. Kerala started aggressive print campaign in the late 1980s. The turning point however happened when National geographic Traveller, after expensive research spanning two years, brought out a special issue on the 50 destinations of a 6
  • 18. lifetime the only destination that featured from India was Kerala. The first ever television commercial done by tourism board in India, captured the magic of Kerala and differentiated it from other states. Kerala also became the first tourism board in India to venture advertising on internet. Tourist season of Kerala starts from September to May. Kerala is famous for beaches, backwaters, mountain ranges, wildlife sanctuaries, hill stations, ayurveda, culture, art forms, festivals etc. Kerala has also launched shopping festivals, the first biennale in India, International coir fest etc as an innovative method to get more publicity. State promotes ecologically sustained tourism, which focuses on the local culture, wilderness adventures, volunteering and personal growth of the local population. Efforts are taken to minimize the adverse effects of traditional tourism on the natural environment, and enhance the cultural integrity of local people. Kerala has set an example for other Indian states by pursuing a visionary approach in tourism; by pushing doors open rather than waiting for the doors to open, by being truly authentic in the experience it offers, by building relationships worldwide and by thinking globally and acting locally. 1.3 Introduction to the company KTDC Hotels and Resorts Limited (KTDC) was incorporated on 29 December 1965 as a private limited company with its registered corporate office situated at Mascot square, Trivandrum. The initial name of the company was Kerala Tourist and Handicrafts Corporation Private Limited. It was then changed as Kerala Tourism Development Corporation Limited from 15 July 1970 and later as KTDC Hotels and Resorts Limited from 07 October 2010 and now it is KTDC. KTDC has been playing a key role in the development of infrastructure facilities required by the rapidly growing tourist traffic into the State of Kerala and has been the prime mover in the progressive development, promotion and expansion of tourism in the State. Apart from developing the largest hotel chain in Kerala, KTDC offers tourism related facilities like conducted tours, boating, tourist reception centers, centralized/online reservations, conventional services, customized tour packages etc. KTDC, the states premier destination developer, owns over 60 properties 7
  • 19. ranging from luxury hotels to budget hotels and motels, Yatri Nivases and restaurants, KTDC aptly qualifies as the official host to Gods own Country. The premium properties of this largest hotel chain in the state are located in the most picturesque theme destinations of Kerala. KTDC also offers Ayurveda centres, cultural entertainment and the best of Keralas cuisine at all its major establishments. KTDC offers comprehensive holiday package Exclusive Escapades offers holiday packages that are set in the premium properties of KTDC. As a pioneering tourism development corporation, KTDC has also introduced innovative concepts like insured holiday and rail holidays, which provide a complete Kerala package. Kerala Tourism Development Corporation (KTDC) is the most successful public sector undertaking The KTDC group of hotels has already stamped the power in term of quality, marketing and hospitality. Even at the time of recession, Kerala though showed a dim effect in the Kerala tourism field but where far ahead when compared to other state, KTDC too showed the growth and from then on there was no look back. KTDC, the largest hotel chain which includes a range of luxury and economy resorts, hotels, and motels located in the heart of some of Keralas most acclaimed destinations. The company aims to be the major player in development of tourism infrastructure in the state. It provides elegant accommodation and better quality services in KTDC hotels and restaurants. It tries to achieve high levels of productivity of employees by better training, motivation and HRD techniques. It also promotes ecofriendly and sustainable tourism and also tourism products. The company primarily focuses on building up capacities to handle increasing flow of tourists into Kerala in a planned manner. The brands and products of the company include heritage hotels, premium hotels, Tamarind easy hotels, motels, restaurants, central reservation centre, shopping complex and water sports. Beer parlors are on lease basis. KTDC has 3 regional offices north Calicut, central Kochi and south Trivandrum. 1.3.1 Mission To provide leadership and play a catalytic role in the development of tourism infrastructure in the State and to achieve excellence in strategic business opera- 8
  • 20. tions through professionalism, efficiency, value for money and customer satisfaction. 1.3.2 Vision To make KTDC the official host to Gods own country, the best service provider in the hospitality industry with basic infrastructure and state-of-the-art facilities, focusing on environment conservation and preservation, adding impetus to local supplies and human resources and thereby positioning as a Premier PSU in the hospitality sector in Kerala. 1.3.3 Key objectives 1) To be a major player in the development of tourism infrastructure in the State. 2) To treat the tourists as our Guests (Adhidhi Devo Bhava) and ensure customer delight by providing value for money. 3) To provide elegant accommodation and better quality services in KTDC Hotels and Restaurants. 4) To function as an efficient corporate house with improved productivity levels and profit margins. 5) Achieve high levels of productivity of its employees by way of better training, motivation and HRD techniques. 6) To empower the host population through responsible tourism. 7) To promote and market our products at National and International level and thereby making Kerala as a premier Global tourism destination. 8) To promote sustainable and eco-friendly tourism in the state based on the carrying capacity of the destinations. 9) To conserve, preserve the art, culture and heritage of the State. 9
  • 21. 10) To promote new innovative tourism products, lesser-known destinations. 11) To provide transport, entertainment, shopping, convention and recreational services. 12) To render consultancy and managerial services in the hospitality industry. 13) To undertake pioneering efforts for destination development. 14) To play an active role in association with the State Tourism Department/Directorate in conceptualizing and execution of tourism projects, publicity, promotion and training. 1.3.4 Brands and products Heritage Hotels 1. Lake Palace, Thekkady. 2. Bolgatty Palace, Kochi. 1. 2. 3. 4. 5. 6. 7. Premium Hotels Mascot Hotel, Thiruvanathapuram. Hotel Samudra, Kovalam. Waterscapes, Kumarakom. Aranya Nivas, Thekkady. Tea County, Munnar. Bolgatty Island Resort, Kochi. Marina House, Kochi. 1. 2. 3. 4. 5. 7. Budget Hotels Hotel Chaithram,Thiruvananthapuram. Periyar House, Thekkady. Garden House, Malampuzha. Nandanam, Guruvayoor. Mangalya, Guruvayoor. Pepper Grove, Sulthan Bathery. 10
  • 22. 8.Golden Peak, Ponmudi Tamarind Easy Hotels 1. Tamarind Easy Hotel, Neyyardam. 2. Tamarind Easy Hotel, Kollam. 3. Tamarind Easy Hotel, Changanasery. 4. Tamarind Easy Hotel, Alappuzha. 5 Tamarind Easy Hotel, Peermade. 6. Tamarind Easy Hotel, Thrissur. 7. Tamarind Easy Hotel, Guruvayoor. 8. Tamarind Easy Hotel, Mannarkadu. 9 . Tamarind Easy Hotel, Nilambur. 10. Tamarind Easy Hotel, Kondotty. 11. Tamarind Easy Hotel, Thirunelly. 12. Tamarind Easy Hotel, Kannur. 13. Tamarind Easy Hotel, Parasinikkadavu Motels 1. Motel Araam, Kottarakkara. 2. Motel Araam, Palaruvi. 3. Motel Araam, Punalur. 4. Motel Araam, Kayamkulam. 5. Motel Araam, Alappuzha. 6. Motel Araam, Vaikom. 7. Motel Araam, Athirappally. 8. Motel Araam, Erumayur. 9. Motel Araam, Vadakara. 10. Motel Araam, Kuttipuram. 11. Motel Araam, Kannur. Restaurants 1. KTDC Restaurant, Veli, Thiruvananthapuram. 2. KTDC Restaurant, Museum, Thiruvananthapuram. 3. Anantha Restaurant, New Delhi. Others 1. Central Reservation Centre,Thiruvananthapuram. 11
  • 23. 2. 3. 5. 6. Tourist Reception Centre,Thiruvananthapuram. Tourist reception Centre, Ernakulam. Shopping Complex, Shanmugam Road, Ernakulam. Watersports, Veli. Others on lease basis Budget Hotel 1. Malabar Mansion, Kozhikode. Restaurant & Beer Parlours 1. Karamana, Thiruvananthapuram. 2. Peyad, Thiruvananthapuram. 3. Statue, Thiruvananthapuram. 4. Balaramapuram. 5. Kazhakuttam. 6. Varkala. 7. Attingal. 8. Harippad. 9. Karukachal 10. Muvattupuzha. 11. Kanjikode, Palakkad. 12. Kozhinjampara, Palakkad. 13. Ramanattukara. 14. Changaramkulam. 15. Koyilandy. 16. Payyannur. 17. Kanhangad, Kazarcode. 18. Kannur. 1.4 Research methodology While conducting a research there are two ways of approaching the same. They are 1) Qualitative research method 12
  • 24. 2) Quantitative research method. Quantitative research method Quantitative research method emphasizes quantification in the collection and analysis of the information. The aim is to gather numerical evidence where conclusions can be drawn from or they can be used to test hypotheses. In order to get reliable results it is necessary to study relatively large sample group and use a computer to analyze the collected information. The information is derived from questionnaire surveys, secondary sources and from observation involving counts. Qualitative research method Qualitative research method on the contrary does not involve numerical data but emphasizes words rather than numbers. This method uses only a small sample group; the primary information is gathered from a small number of people. The information gathered cannot usually be presented in numerical form. This research method is used when a full understanding of the sample group is required. The information is derived from observation, informal and in-depth interviewing and participant observation. A description of research plan for the present study is discussed as under: A study on internal perspective of marketing strategies implemented by KTDC was conducted at KTDC situated in Trivandrum and the study covers the marketing department which has a major role in designing and executing marketing strategies. The means of collecting data is through secondary and primary data collection methods. Primary data was collected from the organisation through personnel visit, questionnaire, interviews and discussions with important executives and staff members of various departments. The variables used in the questionnaire includes brand, market, messages, marketing channels, marketing tactics, creative approches, offers, sales tools and website.This helped to give an overall view of marketing activities carried out in KTDC. The secondary data have been obtained from company website, brochures etc.The brief history of KTDc, its functions, products offered and strategic intent of company was obtained from company website. 13
  • 25. 1.4.1 Objectives of study KTDC uses a marketing strategy to differentiate it from its competitors, but how far it is effective is uncertain. The objective of the study are . . . 1. To evaluate the marketing strategy of KTDC 2. To find out the marketing policy adopted by KTDC 3. To examine the marketing policy related to promotional activities of KTDC 4. To find out the threat involved in marketing policy of KTDC 5. To suggest suitable marketing policy 1.4.2 Research design A research design is a master plan, which specifies various methods and procedure for collecting and analysing the needed information. Descriptive research design is followed. Sample size : 50 Sampling method: Simple random sampling Sampling unit: Managers and officers of various departments in KTDC Nature of data: Primary & secondary data Place of study: KTDC hotels & resorts Ltd, Trivandrum 1.4.3 Sources of data The sources of data include primary and secondary. Primary data The primary data was collected by means of a survey. Questionnaires were prepared and given to executives and staffs of various departments. The questionnaire contains 25 questions which covers various aspects of marketing strategy like brand, market, messages, marketing channels, marketing tactics, creative approaches, offers, sales tools, data and website. The response of the sample was recorded on a grade scale of strongly agree, agree, neutral, disagree and strongly disagree for each question. The filled up information was later analyzed to obtain the interpretations and the findings. 14
  • 26. Secondary data The data was collected from websites, journals, reference books, company records and brochures. 1.4.4 Statistical analysis tools used The various statistical tools used for the analysis and interpretation of the data are 1) Percentage analysis 2) Chi square test 3) Correlation analysis 4) Weighted average method. 1.4.5 Period of study The study was conducted over a period of one month from 11 March 2013 to 11 April 2013. 1.4.6 Hypothesis Hypothesis 1 H0: There is no significant difference between the efficiency of marketing channels and marketing strategies of KTDC H1: There is significant difference between the efficiency of marketing channels and marketing strategies of KTDC Hypothesis 2 H0: There is no significant difference between gender and opinion about marketing strategies of KTDC 15
  • 27. H1: There is significant difference between gender and opinion about marketing strategies of KTDC Hypothesis 3 H0: There is no significant difference between marketing tools and marketing strategies adopted by KTDC H1: There is significant difference between marketing tools and marketing strategies adopted by KTDC Hypothesis 4 H0: There is no association between the opinion about integrating social media into traditional marketing tactics like direct mail and advertising H1: There is association between the opinion about integrating social media into traditional marketing tactics like direct mail and advertising Hypothesis 5 H0: There is no association between the opinion that sales tools are integrated with brand and marketing campaigns H1: There is association between the opinion that sales tools are integrated with brand and marketing campaigns 1.4.7 Scope of study In every company, the preparation of a marketing plan is vital for monitoring and tracking of the companys marketing strategies for a certain product or service. The marketing plan helps to monitor the progress of marketing strategy that is being implemented. Analysis of marketing strategy helps to find out major competitors, which would enable the firm to offer its appropriately designed marketing mix and thereby achieving firms objective. A well defined marketing strategy can clearly describe which market segments to serve and which to exclude, what product to serve and what not to serve. So the marketing strategy have vital role in the success of an organisation. 16
  • 28. KTDC has a significant role in the growth of Kerala tourism industry by formulating effective marketing strategies. This study will evaluate the marketing strategies implemented in KTDC, to find out the various marketing policies used by them, to know its effectiveness and to suggest suitable policy for the company. 1.4.8 Limitation of study 1.The time frame given for the study is limited. 2.The study is based on qualitative analysis and hence results may be bi- ased. 3.Detailed information about the company was not be provided, in order to keep secrecy of company policies 1.5 Chapterisation Chapter 1 discuss about the background of problem, industry profile, company profile, research objectives, research methodology, scope and limitation of study. Chapter 2 gives in depth information about the literature reviewed for the study. In Chapter 2 the topics discussed include marketing, marketing mix, marketing segmentation, relationship marketing, marketing strategy, strategic role of marketing, elements of marketing strategy, types of marketing strategy, marketing strategy formulation and marketing strategy implementation. Chapter 3 presents the data collection and analysis. The statistical tools used include Chi square, Percentage analysis, Correlation coefficient and Weighted average method. Chapter 4 presents the findings and suggestions of the study. Chapter 5 gives a brief conclusion of the project. 17
  • 29. Chapter 2 Literature review Marketing is often thought to be only selling and advertising. However, marketing consists of many other functions that can be seen far more important than just the exchange of goods (Kotler, 1997). The American Marketing Association defines marketing as follows: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Today, more than ever, marketing has put emphasis on satisfying the customer needs. The customer tends to make decisions on buying a product or a service based on their perception of the value and satisfaction that the product or service delivers. From the companys point of view the goal of marketing is to first build and then manage profitable customer relationships. In order to achieve this it is not enough only to first market the product and then sell it but make sure that the product being sold will meet the standards and be enough to fulfill the customers expectations. Therefore the company must be aware and understand their customers; their needs, wants and demands. That is why many companies put a lot of effort and money into making different kinds of customer surveys analyzing their customers behavior and learning about the different way of delivering the superior customer value and satisfaction(Kotler, 1997)
  • 30. 2.1 Marketing mix The marketing mix is one of the major concepts in modern marketing and is often brought up in general discussions of marketing. Marketing mix is a set of marketing tools that a company uses to pursue its marketing objectives in the target market. When a company is making decisions on marketing they generally fall into four controllable categories known as the 4 Ps: product, price, place and promotion(Kotler, 1997). 2.2 Market segmentation In marketing it is almost impossible to succeed by handling all the consumers as a big one size fits for all mass. Market segmentation recognizes that people differ in many ways like in their needs, attitudes and lifestyles. Through market segmentation companies divide their market into smaller segments. All of the segments have specific needs and by dividing the market those needs can be met more efficiently with products and services that match their unique needs. Choosing the right target market is essential and often not that easy. When defining a target market for a product there should be three separate levels. The first level consists of consumers that are willing to buy and who also have the best premises to buy. The second level consists of consumers who have the premises to buy but not necessarily the desire. The third level consists of consumers who are not able to buy but who should be monitored in case there is a change in their buying readiness (Kotler, 1997). There are many ways to segment a market. Different segmentation variables are used, both alone and together, in order to classify consumers into different segments. Kotler defines four major variables that are generally used in marketing; geographic, demographic, psychographic and behavioral variables. 2.2.1 Geographical segmentation Geographical segmentation divides the market into different geographical units such as cities, regions, countries or climate and population density. By this way when a company is deciding which units to operate and market, they can pay 19
  • 31. attention to geographical differences in needs and wants. For example a major clothing store chain can pay attention to their selection in stores in northern areas where it is colder and the need for warmer clothes is greater than in areas located more south(Kotler, 1997) 2.2.2 Demographic segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. Demographic factors are the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process (Kotler, 1997). 2.2.3 Psychographic segmentation Psychographic segmentation divides the market into different groups based on social class, lifestyle or personality characteristics. People can be in the same geographical segment meaning that they may for example live in the same city; they can even be of same age. But one may be a student and another a worker. This affects their lifestyles greatly and therefore also has an effect on the buying behaviors of the people (Kotler, 1997). 2.2.4 Behavioral segmentation Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses and responses to a product. Behavioral segmentation has the advantage of using variables that are closely related to the product itself. When a company knows when and why customers are buying their products, they can link their marketing to that. For example some holidays like on Valentines Day or at Christmas people tend to buy certain things related to the occasion; many companies prepare special offers and advertisements for those holiday occasions.(Kotler, 1997) 20
  • 32. 2.3 Relationship marketing Relationship marketing is a form of marketing that emphasizes customer retention and satisfaction. It switches the focus from the recruitment of new customer to the retention and recovery of existing ones. Relationship marketing differs from other forms of marketing in that it recognizes the long-term value of customer relationships and extends communication. The world of marketing today is more customer-centered. As companies must compete in a more competitive marketplace they have to know their customers? needs and wants in order to get new customers, then keep and grow them by delivering greater value for them (Piercy and Nigel, 2000) When planning g a relationship marketing strategy one must take into account that not all customers want a relationship with the company. That is why it must be carefully considered which types of customers are usually more likely to repeat their visit in a hotel or a restaurant. Some customers are aware of the wide choice of competitor products and services and do not want to limit their options and tie themselves only to one company but prefer to switch their custom accordingly. Other customers are not interested in any type of relationship with any company; they simply look at the best quality, value and convenience available at the time of purchase (Davis, 2007). 2.4 Introduction to marketing strategy Marketing strategy includes all basic and long-term activities in the field of marketing. It deals with the analysis of the strategic initial situation of a company, the formulation, evaluation and selection of market-oriented strategies. Therefore it contributes to the goals of the company and its marketing objectives. Strategic planning is a process of developing and maintaining a link between the organizations goals and capabilities and its changing marketing opportunities. The marketing strategy is shaped by the overall business goals meaning that it broadly explains what actions are required to achieve the goals and objectives. The marketing strategy can be thought of as a game plan that outlines, often in a list form factors such as the target market, positioning, distribution channels, price, advertising and possible research and development. 21
  • 33. 2.5 Marketing strategy According to (Kotler, 1997) The marketing strategy is the way in which the marketing function organises its activities to achieve a profitable growth in sales at a marketing mix level. A marketing strategy may be defined as a plan (usually long term) to achieve the organisations objectives as follows... a) By specifying what resources should be allocated to marketing. b) By specifying how these resources should be used to take advantage of opportunities which are expected to arise in the future. A marketing strategy would consist of the following: a. Identifying markets and customers needs in those markets. b. Planning products which will satisfy the needs of these markets. c. Organising marketing resources , so as to match products with customers in the most efficient and effective way possible, ie, so as to maximise customer satisfaction and the organisations profits or sales revenue (or whatever its objectives are at the same time). Choosing the right target market is essential and often not that easy. When defining a target market for a product there should be three separate levels. The first level consists of consumers that are willing to buy and who also have the best premises to buy. The second level consists of consumers who have the premises to buy but not necessarily the desire. The third level consists of consumers who are not able to buy but who should be monitored in case there is a change in their buying readiness (Kotler, 1997). Positioning is the act of designing the companys offering so that the services and products are based on some core idea or benefit. Its meaning is to create a competitive angle toward the competitors so the positioning of a product can be based for example on the best or quickest service, accessibility or affordability. This way the product occupies a clear, distinctive and desirable place relative to competing products in the minds of the target customers. 22
  • 34. Marketing strategy is mainly indicated by the marketing objectives, customer and competitive perspectives and product/market momentum ( i.e. extrapolation of past performance to the future). This forms the basis of marketing strategy. Marketing strategy is developed at the business unit level (Kotler, 1997). 2.5.1 3 Cs of marketing strategy Within a given environment, marketing strategy deals essentially with the interplay of three forces known as the strategic 3 Cs namely the Customer, the Competition and the Corporation (Davis, 2007). A good marketing strategy should be characterized by a) clear market definition b) a good match between corporate strengths and the needs of the market c) superior performance, relative to the competition, in the key success factors of the business. Marketing strategy, in terms of these key constituents, must be defined as an endeavour by a corporation to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs in a given environmental setting. Based on the interplay of the strategic three Cs, formation of marketing strategy requires the following 3 decisions: 1. Where to compete. (definition of the market). One or various segments. 2. How to compete, that is, it requires a means for competing . 3. When to compete, that is, it requires timing of market entry (Lambin and Jean-Jacques, 2000). 2.6 Strategic role of marketing In its strategic role, marketing focuses on a business intentions in a market and the means and timing of realizing those intentions. The strategic role of mar23
  • 35. keting is quite different from marketing management which deals with developing, implementing and directing programs to achieve designated intentions. To clearly differentiate between marketing management and marketing in its new role , a term strategic marketing. has been coined to represent the latter (Gale et al., 1980). Strategic marketing is seen as a process consisting of: analyzing environmental, market competitive and business factors affecting the corporation and its business units, identifying market opportunities and threats and forecasting future trends in business areas of interest for the enterprise , and participating in setting objectives and formulating corporate and business unit strategies. It also includes selecting market target strategies for the product markets in each business unit, establishing marketing objectives as well as developing , implementing and managing the marketing program positioning strategies in order to meet market target needs. (Gale et al., 1980) Strategic marketing means looking at the whole of a companys portfolio of products and markets, and managing the portfolio to achieve the companys overall goals (Jain and Girish, 1993) Although definitions for the term vary, (Hamper and Baugh, 1990) define marketing strategy as a consistent, appropriate and feasible set of principles through which a particular company hopes to achieve its longrun customer and profit objectives in a particular competitive environment. The primary purpose of a marketing strategy is to effectively allocate and coordinate marketing resources and activities to accomplish the firms objectives within a specific product market. Therefore decisions about the scope of a marketing strategy involve specifying the target market segment(s) to be pursued and the product line to be offered. Then, firms seek a competitive advantage and synergy, planning a well integrated program of marketing mix elements (Boyd et al., 1998). Marketing strategy creates pathways to a desirable future. The output from such marketing strategy analysis and choice (or strategic marketing decision ) is a marketing strategy statement. The strategic analysis of marketing makes reference to the future situation of products and markets,(Prahalad et al., 2004), that is to say that it tries to guide 24
  • 36. the company by the correct path and where the company should be in the future. It is also important to define clearly what should be interpreted for product and for markets and this is important because marketing strategies are open to interpretations (Piercy and Nigel, 2000). Traditional definitions can be broken by new variables that contribute to redefine markets and products. These variables can be technology, Internet, changing consumers attitudes, social changes, etc.. The term marketing strategy reflects the companys best opinion as to how it can most profitably apply its skills and resources to the marketplace. It is inevitable broad in scope. Marketing strategies are the means by which a company achieves its marketing objectives and are usually concerned with the 4 p’s. (Mcdonald, 1999). 2.7 Elements of marketing strategy A marketing strategy is made of several interrelated elements. The first and most important is market selection which is directly related to choosing the markets to be served(Brown and Sommers, 1982). Product planning includes the specific products the company sells, the makeup of the product line, and the design of individual offerings in the line. Another element is the distribution system: the wholesale and retail channels through which the product moves to the people who ultimately buy it and use it. The overall communications strategy, employs advertising to tell potential customers about the product trough radio, television, direct mail, and public print and personal selling to deploy a sales force to call on potential customers, urge them to buy, and take orders. Finally , pricing, is an important element of any marketing program and is one of the most directed marketing elements in the creation of value for shareholders (Doyle, 2000). The company must set the product prices that different classes of customers will pay and determine the margins or commissions to compensate agents, wholesalers , and retailers for moving to product to ultimate users. The External, market orientation must be kept in mind since the companies are guided to the market in a regular way. Reliable data in the strategic analysis has bigger possibilities of success and bigger chances of optimizing their results.(Aaker, 2004) Other issues to take into consideration and which influence in marketing 25
  • 37. strategies are: the understanding of growth markets and Market Share, managing international realities, implicating empirical research, utilization of methodological developments, for example, portfolio models, experience curves, scenario analysis, market structure analysis and technological forecasting; and finally getting into interdisciplinary developments, including marketing, organizational behaviour, finance and accounting, economics, strategy. (Aaker, 2004) 2.8 Types of marketing strategy (Sahaf, 1993) has mentioned six strategies that can help a leader attain the objective of market share protection. They are 2.8.1 Position defense In this strategy a leader attempts to protect its existing market share through fortification wherein the leader erects barriers around him to stop competitors. The barrier can be in the form of a firms distinctive skills capabilities and marketing assets that not only have greater significance for the customers but also are difficult for the competitors to copy. 2.8.2 Mobile defense This involves constantly shifting resources and developing new strategies and tactics. A mobile defense is intended to create a moving target that is hard to successfully attack, while simultaneously, equipping the defender with a flexible response mechanism should an attack occur. In business this would entail introducing new products, introducing replacement products, modifying existing products, changing market segments, changing target markets, repositioning products, or changing promotional focus. This defense requires a very flexible organization with strong marketing, entrepreneurial, product development, and marketing research skills. 26
  • 38. 2.8.3 Flank position This involves the redeployment of your resources to deter a flanking attack. You protect against potential loss of market share in a segment, by strengthening your competitive position in this segment with new products and other tactics. 2.8.4 Counter offensive Counter offensive defense refers to the response of a market leader to a real attack by a competitor. In fact, these defensive calls for a leader to respond to a competitors head on attack by identifying the attackers weakness and then launch a counter attack. Generally a leader actively responds to any move of his competitors. An effective counterattack is to invade the attackers main territory so that it will have to pull back some troops to defend the territory. Generally counteroffensive defense works when the attacker has become vulnerable as a result of the over stretching of resources. 2.8.5 Preemptive defense A preemptive defense strategy demands to attack potential aggressor before he starts his offence. By pursuing preemptive defense strategy a firm intends to convey let it be known how it will retaliate. Thus such a strategy aims to create a threat which will prevent any potential challenger from attacking in the first place. In business the preemptive defense can involve an actual attack on the competition or merely signalling an intention to fight on a particular front and a willingness to commit the necessary resources to defend against aggression. Product or brand proliferation is a form of preemptive defense. 2.8.6 Contraction defense A contraction defense, or strategic withdrawal, requires giving up untenable ground to reduce over stretching on the core business which can be defended against attack. In fact, such a strategy calls for a withdrawal from the most vulnerable segments and redirect resources to those that are more defendable. 27
  • 39. 2.9 Marketing strategy formulation A company should not only know own company but also the behavior of the competitors potential and the capacity to add and remove it in products, segments, markets, distribution channels, etc. From my point of view one of the clearest indicators that a company thinks, and it acts with mentality of strategic marketing it is the level of depth that makes of its competitors.(Alexander, 1985) (Bantel, 1997) suggests that particular product/market strategies are effective at achieving particular performance goals to the exclusion of others. The synergies between strategy types and implementation capabilities exist and should be exploited.Creating marketing synergy means that you have a marketing plan where each element of your plan complements another. The total effect achieved is greater than the sum of the individual effects. Synergy creates greater power and energizes company’s marketing efforts. According to (Hrebiniak, 2006)) formulating a consistent strategy is a difficult task for any Management team and making that strategy work (implementing it throughout the Organization) is even more difficult. he also pointed out that managers know more about developing a strategy than they do about executing it. One of the basic problems he quote is that managers are trained to plan, not execute plans. Another problem is that some top level managers believe strategy implementation is below them’, something best left to lower level managers. According to (Noble, 1999), a myriad of factors can potentially affect the process by which strategic plans are turned into organizational action. Unlike strategy formulation, strategy implementation is often seen as something of a craft, rather than a science, and its research history has previously been described as fragmented and eclectic. Leadership, and specifically strategic leadership, is widely described as one of the key drivers of effective strategy implementation. However, a lack of leadership, and specifically strategic leadership by the top management of the organisation, has been identified as one of the major barriers to effective strategy implementation. Strategic leadership is defined as the leaders ability to anticipate, envision, and maintain flexibility and to empower others to create strategic change as necessary. Strategic leadership is multi functional, involves managing through others, and helps organisations cope with change that seems to be increasing exponentially in todays globalised business environment. 28
  • 40. 2.10 Marketing strategy implementation Great strategies are worth nothing if they cannot be implemented . Strategy implementation is important but difficult because implementation activities take a longer time frame than formulation, involves more people and greater task complexity, and has a need for sequential and simultaneous thinking on part of implementation managers. Strategy formulation and implementation are complementary and logically distinguishable areas of strategic management and part of the overall process of planning executing and adapting. Good implementation naturally starts with good strategic input: the soup is only as good as the ingredients.Whether a strategy itself is consistent and fitting or not is a key question for successful strategy implementation, but even a consistent strategy cannot be all things to all people. Strategy programs need to be expanded to focus on the implementation process. More attention should be given to breaking down lofty statements into practical, actionable, measurable activities. The language and methods used to implement need to be simplified, and consistently deployed. Success in implementation is critical to validating the investment in strategy in the first place. (Allio, 2005) 2.10.1 Management involvement in strategy implementation (Heracleous, 2000) also finds that if middle management do not think the strategy is the right one, or do not feel that they have the requisite skills to implement it, then they are likely to sabotage its implementation. He refers to groups within the organization who will inevitably disagree with the strategy. These groups may sabotage strategy implementation by deliberate actions or inactions, if implementing the strategy may reduce their power and influence. Thus, Herbaceous also sees the perceived ability and perceived consistency between personal goals and the strategic change goals as the decisive soft factor. (Waldersee and Sheather, 1996) believe that the approach of matching strategy and managers style ignores the causal role of the organizational context or the 29
  • 41. interaction of personality and context on implementation actions. It is widely accepted that different strategies need to be implemented in different ways. Their study demonstrates, at least in a laboratory setting, that strategy plays a significant role in shaping managers intentions. Managers can alter their behaviours to suit different strategy situation. (Kim and Mauborgne, 1991) point out that subsidiary top managers want an open process, that is consistent and fair, and that allows for their input to be heard. In the presence of a so called due (or open) process, subsidiary managers are motivated to implement global strategies. They feel a strong sense of organizational commitment, trust in head office management, and social harmony with their head office counterparts. In the absence of such a due and fair process, the effect may be the opposite from the intended one. (Chimhanzi, 2005) suggests that cross unit working relationships have a key role to play in the successful implementation of marketing decisions. Implementation effectiveness is affected negatively by conflict and positively by communication and specifically, interpersonal, not written. In turn, these interdepartmental dynamics are affected by senior management support, joint reward systems, and informal integration. Firms devoting attention to the alignment of marketing and human resources are able to realize significantly greater successes in their strategy implementation. Specifically, these findings imply that marketing managers should seek to improve the relationship with their HR colleagues by emphasizing two of the process based dimensions: joint reward systems and written communication. (Chimhanzi, 2005) 2.10.2 8S framework of strategy implementation (Higgins, 2005) sets up an 8s framework of strategy implementation, including strategy and purposes structure, resources, shared values, style, staff, systems and processes, and strategic performance. The 8s of strategy execution is an approach that enables senior management to enact, monitor, and assess the cross functional execution of strategies. The 8s of strategy execution are a revision of the original McKinsey 7s model. Higgins has deleted skills from the McKinsey 30
  • 42. framework and he has added resources in their place. He also added strategic performance in order to help focus the strategy execution process. As always, if there isnt a good match or alignment among these factors, performance in strategy implementation will suffer. According to (Jain, 2009): System approach can be defined as, A set of objects together with the relationships among them and their attributes. System approach emphasis on the interrelations and interconnections among the components of a marketing system in which product, services, money, equipment, information etc, flow from marketers to customer. These flows largely determine the survival and growth of a firm. Therefore the focus of system approach is on the analysis of the marketing flows and communication from markers to the customers. 2.11 Summary From this chapter we get a brief idea about all topics discussed in the same. Marketing is important wing of any company. marketing mix help to design an effective product. Market segmentation help to identify the target customers. Relationship marketing mainly focus on building relationship between company and customers. For all entities mentioned here needs an effective marketing strategy. Marketing strategy is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market oriented strategies and therefore contributes to the goals of the company and its marketing objectives. A good marketing strategy also defines the reason why it is unique or compelling to buyers. It should explain what is the benefit the consumer gets by purchasing the companys product. It should explain why the customer would want to buy that particular product from the company and not go to some competitor instead. Marketing strategy creates pathways to a desirable future. The output from 31
  • 43. such marketing strategy analysis and choice (or strategic marketing decision) is a marketing strategy statement. There are several elements of marketing strategy which is crucial for its formulation, implementation and evaluation. Even though there are different types of marketing strategy, choosing the best one is vital for the company. 32
  • 44. Chapter 3 Data Collection and Analysis This chapter presents the data collection and analysis.The methodology described in Chapter 1 provided the baseline for data gathering. The presentation of data is systematically linked to the format of self developed questionnaire attached in the appendix. Descriptive and inferential statistics such as frequencies, tables, percentage and correlation tests were used in the data analysis and summaries. Relationships between variables were identified using frequencies, Chi square and correlation. 1) 2) 3) 4) The tools used for statistical analysis are Percentage analysis Chi square test Correlation coefficient Weighted average method 3.1 Percentage Analysis Percentage analysis is the method to represent raw streams of data as a percentage (a part in 100 - percent) for better understanding of collected data.
  • 45. Table 3.1: Gender wise classification Gender Male Female No of respondents 36 14 Percentage 72% 28% Figure 3.1: Gender wise classification 3.1.1 Gender wise classification Analysis It can be seen from the table. 3.1 as well as from the figure. 3.1 that out of 50 respondents 72% are male and 28% are females. Inference Out of 50 respondents 72% are male. Majority of the respondents of the study are males. 34
  • 46. 3.1.2 Age wise classification Table 3.2: Age wise classification age No of respondents 20-30 4 31-40 28 41& above 18 Percentage 8% 56% 36% Figure 3.2: Age wise classification Analysis It can be seen from the Table 3.2 as well as from the above Fig. 3.2 that out of 50 respondents 8% of the respondents have the age between 20 and30 and 56% of them were aged between 31 and 40. Remaining 36% have age more than 41. Inference 56% of the respondents have age between 31 and 40. Majority of the respondents are in the age group of 31 and 40. 35
  • 47. 3.1.3 Qualification wise classification Table 3.3: Qualification wise classification Qualification Plus two Degree Technical PG No of respondents 2 30 6 12 Percentage 4% 60% 12% 24% Figure 3.3: Qualification wise classification Analysis It can be analyzed from the Table 3.3 out of 50 respondents 4% of the respondents have the qualification of plus two and 60% of them are graduates. 12% of them were technically qualified and remaining 24% are post graduates. Inference Majority of the respondents are graduates. 36
  • 48. 3.1.4 Experience wise classification Table 3.4: Experience wise classification Experience Below 1 year 1-5 years 6-10 years Above 10 years No of respondents 1 11 16 22 Percentage 2% 22% 32% 44% Figure 3.4: Experience wise classification Analysis It can be analyzed from the Table 3.4 that 2% of the respondents have an experience of below 1 year in the organization. 22% of them have an experience between 1 to 5 years and 32% of them have an experience of 6 to 10 years. 44% of the employees have an experience of more than 10 years. Inference 44% of the employees have an experience of more than 10 years. This indicates that majority of the KTDC executives are more experienced. 37
  • 49. 3.1.5 Income wise classification Table 3.5: Income wise classification Income 5000-10000 10001-20000 20001-30000 Above 30000 No of respondents 2 18 17 13 Percentage 4% 36% 34% 26% Figure 3.5: Income wise classification Analysis It can be seen from the Table 3.5 as well as from the above Fig. 3.5 that out of 50 respondents 4% of the respondents have an income between 5000 and 10000 and 36% of them have an income between 10001 and 20000. 34% earns between 20001 and 30000 it can be seen that 26% of them earn more than 30001 as their income. Inference Majority of the respondents have an income between 10001 and 20000. 38
  • 50. 3.1.6 About the clarity in communication Table 3.6: About the clarity in communication Response No of respondents Strongly agree 12 Agree 18 Neutral 2 Disagree 14 Strongly disagree 4 Percentage 24 36 4 28 8 Figure 3.6: About the clarity in communication Analysis As from the Table 3.6 it can be seen that 24% of the respondents strongly agree that their brand clearly communicates what they are about and conveys the highest value which they deliver. 36% of them agree with the same. Here only 4% of the respondents became neutral. 28% of the respondents disagree and 8% of the respondents strongly disagree with the same. According to them the brand does not clearly communicates what they are about and conveys the highest value they deliver. Inference 36% of the respondents agree that their brand clearly communicates what they are about and conveys the highest values they deliver. This indicates that the brand used by KTDC conveys the intended message. 39
  • 51. 3.1.7 Usage of brand identity Table 3.7: Usage of brand identity Response No of respondents Strongly agree 10 Agree 27 Neutral 2 Disagree 9 Strongly disagree 2 Percentage 20 54 4 18 4 Figure 3.7: Usage of brand identity Analysis As from the Table 3.7 it can be seen that 20% of the respondents strongly agree that their brand identity is being used in all media. 54% of the respondents agree with it. Here only 4% of the respondents became neutral. 18% of the respondents disagree and 8% of the respondents strongly disagree that their brand identity is not being used in all media. Inference 54% of the respondents agree that their brand identity is being popularly used in all media. This indicates that brand messages used are consistently delivered in all media and thereby creating a popular brand identity. 40
  • 52. 3.1.8 Awareness about profitable customers Table 3.8: Awareness about profitable customers Response No of respondents Strongly agree 24 Agree 12 Neutral 1 Disagree 8 Strongly disagree 5 Percentage 48 24 2 16 10 Figure 3.8: Awareness about profitable customers Analysis From the Table 3.8 it is seen that 48% of the executives and managers strongly agreed to the statement that they know their most profitable customers and they are targeting prospects that look like their best customers. 24% also accords to the same. While 16% disagreed to the statement and 10% strongly disagrees to the same. Inference KTDC is fully aware about its most profitable customers and they are targeting such customers and prospects. This shows that KTDC is aware about its profitable customers and by targeting such customers, KTDC is increasing its profit. 41
  • 53. 3.1.9 Awareness about customers changing buying behavior Table 3.9: Awareness about customers changing buying behavior Response No of respondents Strongly agree 6 Agree 21 Neutral 7 Disagree 8 Strongly disagree 8 Percentage 12 42 14 16 16 Figure 3.9: Awareness about customers changing buying behavior Analysis 42% agreed to the statement that they are aware about customers changing buying behavior. 12% strongly agrees to it, 16% disagrees to the statement and another 16% strongly disagree to the same. Inference Majority of the staffs know that customers have changed the way they find, buy or use KTDCs services and KTDC has adjusted the marketing plan accordingly. This shows that KTDC changes its marketing plan based on customer buying behavior. 42
  • 54. 3.1.10 Opinion on up-selling and cross selling Table 3.10: Opinion on up-selling and cross selling Response No of respondents Strongly agree 5 Agree 31 Neutral 3 Disagree 7 Strongly disagree 4 Percentage 10 62 6 14 8 Figure 3.10: Opinion on up-selling and cross selling Analysis From the Table 3.10 it is seen that 62% of the staffs agreed to the statement that they are actively up-selling and cross selling services to their current customers. 14% disagrees to it while 10% strongly agrees to the statement. 8% strongly disagrees to it. Inference Majority of the staffs agrees to the statement which shows that the sales tools and marketing plan adopted are very well supporting the sales activity. KTDC has got active sales agents who enhances the up-selling and cross selling activity. 43
  • 55. 3.1.11 Key marketing messages that is consistently delivered in media Table 3.11: Key marketing messages that is consistently delivered in media Response No of respondents Strongly agree 7 Agree 21 Neutral 10 Disagree 7 Strongly disagree 5 Percentage 14 42 20 14 10 Figure 3.11: Key marketing messages Analysis From the Table 3.11 it is seen that 42% of staffs agreed to the statement that they have key marketing messages that they are consistently delivering in all media. 14% strongly agrees to the statement and an equal number disagrees to it. 10% strongly disagrees to the statement. 20% remained neutral to the statement. Inference KTDC have key marketing messages that they are consistently delivering in all media. This ensures wider reach and visibility to the brand, offers, services etc 44
  • 56. 3.1.12 Experience customers have while interacting with employees Table 3.12: Experience customers have while interacting with employees Response No of respondents Strongly agree 17 Agree 15 Neutral 2 Disagree 10 Strongly disagree 6 Percentage 34 30 4 20 12 Figure 3.12: Experience customers have while interacting with employees Analysis Table 3.12 shows that 34% of the employees strongly agreed to the statement that the messages delivered in all media matches the experience customers have when they interact with KTDCs staff. 30% agreed to it while an equal number disagreed to the same. Only 12% strongly disagreed to the statement. Inference The experience customers have while interacting with the employees matches with the key messages that is being delivered in all media. The staffs of KTDC are well trained and customer friendly. Training given to employees by KTDC ensures that a standardized service is given to all customers. 45
  • 57. 3.1.13 Targeting of messages to specific market segments Table 3.13: Targeting of messages to specific market segments Response No of respondents Strongly agree 12 Agree 18 Neutral 4 Disagree 10 Strongly disagree 6 Percentage 24 36 8 20 12 Figure 3.13: Targeting of messages to specific market segments Analysis From the Table 3.13 it is seen that 36% of the employees agreed to the statement that they are tailoring messages to specific market segments when they have an opportunity to do so. 24% strongly agreed to it, while 20% disagreed to the statement. 12% strongly disagreed to the statement while 8% remained neutral about the same. Inference Majority of the employees agreed to the statement that they are tailoring messages to specific to market segments when they have an opportunity to do so. This means marketing tactics used are flexible. 46
  • 58. 3.1.14 Opinion on shifting marketing to new channels Table 3.14: Opinion on shifting marketing to new channels Response No of respondents Strongly agree 18 Agree 22 Neutral 1 Disagree 8 Strongly disagree 1 Percentage 36 44 2 16 2 Figure 3.14: Opinion on shifting marketing to new channels Analysis As from the Table 3.14 it can be seen that 36% of the respondents strongly agree that it is time to shift some or more of their marketing to new channels such as social media and mobile marketing. 44% of them agree with the same. Here only 2% of the respondents became neutral. 16% of the respondents disagree with this and it 2% of the respondents strongly disagree that it is time to shift some or more of their marketing to new channels such as social media and mobile marketing. Inference 36% of the respondents agree that it is time to shift some or more of their marketing to new channels such as social media and mobile marketing. This shows that KTDC has realized the importance of new marketing channels and they are in phase to shift to some of their marketing to new channels. 47
  • 59. 3.1.15 Opinion on maximizing the value Table 3.15: Opinion on maximizing the value Response No of respondents Strongly agree 5 Agree 29 Neutral 2 Disagree 9 Strongly disagree 5 Percentage 10 58 4 18 10 Figure 3.15: Opinion on maximizing the value Analysis As from the Table 3.15 it can be seen that 10% of the respondents strongly agree that they are maximizing the value of the proprietary channels they control, such as newsletters, invoices, product packaging and inserts, vehicles and buildings. 58% of them agree with the same. Here only 4% of the respondents became neutral. 18% of the respondents disagree and 10% of the respondents strongly disagree with this. Inference 58% of the respondents agree that they are maximizing the value of the proprietary channels they control, such as newsletters, invoices, product packaging and inserts, vehicles and buildings. KTDC has got several marketing tools and they are utilizing it effectively. 48
  • 60. 3.1.16 Opinion on marketing tactics Table 3.16: Opinion on marketing tactics Response No of respondents Strongly agree 18 Agree 20 Neutral 1 Disagree 9 Strongly disagree 2 Percentage 36 40 2 18 4 Figure 3.16: Opinion on marketing tactics Analysis It can be seen from the Table 3.16, that 36% of the respondents strongly agree that the marketing tactics are generating the best results- leads, conversions or sales at the lowest cost.40% of them agree with the same. Here only 2% of the respondents became neutral. 18% of the respondents disagree and 4% of the respondents strongly disagree with this. Inference 36% of the respondents agree that the marketing tactics are generating the best results- leads, conversions or sales at the lowest cost. This indicates that the marketing tactics used is very effective. 49
  • 61. 3.1.17 Integration of social media into traditional marketing Table 3.17: Integration of social media into traditional marketing Response No of respondents Strongly agree 21 Agree 20 Neutral 1 Disagree 4 Strongly disagree 4 Percentage 42 40 2 8 8 Figure 3.17: Integration of social media into traditional marketing Analysis From the Table 3.17 it can be seen that 42% of the respondents strongly agree that they are integrating social media into traditional marketing tactics like direct mail and advertising. 40% of them agree with the same. Here only 2% of the respondents became neutral. 8% of the respondents disagree and 8% of the respondents strongly disagree with this. Inference 42% of the respondents agree that they are integrating social media into traditional marketing tactics like direct mail and advertising. This shows that KTDC understands the importance of social media in marketing its products and they are integrating the same into traditional marketing tactics like direct mail and advertising. 50
  • 62. 3.1.18 Opinion on creativity used Table 3.18: Opinion on creativity used Response No of respondents Strongly agree 13 Agree 27 Neutral 1 Disagree 8 Strongly disagree 1 Percentage 26 54 2 16 2 Figure 3.18: Opinion on creativity used Analysis From the above it can be seen that 26% of the respondents strongly agree that their creative is attention getting and it stands out in a crowded market place. 54% of them agree with the same. Only 2% of the respondents became neutral. 16% of the respondents disagree and 2% of the respondents strongly disagree with this. Inference 54% of the respondents agree that their creative is attention getting and it stands out in a crowded market place. The creative designs or features used in ads, brochure etc are attention getting and it is unique which makes it to differentiate from its competitors. 51
  • 63. 3.1.19 Clarity of marketing materials used Table 3.19: Clarity of marketing materials used Response No of respondents Strongly agree 15 Agree 17 Neutral 5 Disagree 9 Strongly disagree 4 Percentage 30 34 10 18 8 Figure 3.19: Clarity of marketing materials used Analysis As from the above it can be seen that 30% of the respondents strongly agree that their call to action is loud and clear and their prospects know exactly what to do next after reviewing their marketing materials. 36% of them agree with the same. Here 10% of the respondents became neutral. 18% of the respondents disagree and 8% of the respondents strongly disagree with this. Inference 36% of the respondents agree that their call to action is loud and clear. Their prospects know exactly what to do next after reviewing their marketing materials. This indicates that messages conveyed in marketing material are appropriate and very clear. 52
  • 64. 3.1.20 Resonance of offers Table 3.20: Resonance of offers Response No of respondents Strongly agree 25 Agree 20 Neutral 0 Disagree 4 Strongly disagree 1 Percentage 50 40 0 8 2 Figure 3.20: Resonance of offers Analysis As from the above it can be seen that 50% of the respondents strongly agree that their offer is resonating with prospects and more and more people saying yes. 40% of them agree with the same. Here none of the respondents became neutral. 8% of the respondents disagree and 2% of the respondents strongly disagree with this. Inference 50% of the respondents strongly agree that their offer is resonating with prospects and more and more people are saying yes. The offers are made based on the customer buying behavior and they are effective. 53
  • 65. 3.1.21 Effectiveness of offers Table 3.21: Effectiveness of offers Response No of respondents Strongly agree 8 Agree 32 Neutral 1 Disagree 8 Strongly disagree 1 Percentage 16 64 2 16 2 Figure 3.21: Effectiveness of offers Analysis As from the above it can be seen that 16% of the respondents strongly agree that their offers showcase their products, 64% of them agree with this. Here only 2% of the respondents became neutral. 16% of the respondents disagree that their offers showcase their products and remaining 2% exhibit a strong disagreement regarding this. Inference 64% of the respondents agree that their offers showcase their products. The brochures, ads and other marketing materials used showcases different products of KTDC. These are consistently delivered in all media which ensures that marketing messages delivered are same. 54
  • 66. 3.1.22 Role of offers in the product value Table 3.22: Role of offers in the product value Response No of respondents Strongly agree 8 Agree 28 Neutral 2 Disagree 7 Strongly disagree 5 Percentage 16 56 4 14 10 Figure 3.22: Role of offers in the product value Analysis As from the above it can be seen that 16% of the respondents strongly agree that their offer delivers real value to the prospect. 56% of them agree with this. Here only 4% of the respondents became neutral. 14% of the respondents disagree and 10% of the respondents strongly disagree that their offer delivers real value to the prospect. Inference 56% of the respondents agree that their offer delivers real value to the prospect. The offers made are based on the buying behavior of customer and they are effective. 55
  • 67. 3.1.23 Sales brochure attributes Table 3.23: Sales brochure attributes Response No of respondents Strongly agree 13 Agree 29 Neutral 2 Disagree 3 Strongly disagree 3 Percentage 26 58 4 6 6 Figure 3.23: Sales brochure attributes Analysis It can be seen from the above that 26% of the respondents strongly agree that their sales brochures displays and sales demonstration tools are accurate, complete and up to date. 58% of them agree with this. Here only 4% of the respondents became neutral. 6% disagrees to the statement and an equal number strongly disagree to the same Inference 58% of the respondents agree that their sales brochures displays and sales demonstration tools are accurate, complete and up to date. 56
  • 68. 3.1.24 Integration of sales tools Table 3.24: Integration of sales tools Response No of respondents Strongly agree 19 Agree 12 Neutral 8 Disagree 7 Strongly disagree 4 Percentage 38 24 16 14 8 Figure 3.24: Integration of sales tools Analysis As from the above it can be seen that 38% of the respondents strongly agree that their sales tools are integrated with their brand and marketing campaigns.24% of them agree with the same. Here 16% of the respondents became neutral. 14% of the respondents disagree and 8% of the respondents strongly disagree with this. Inference 38% of the respondents strongly agree that their sales tools are integrated with their brand and their marketing campaigns. This indicates that marketing strategy is made by inter connecting marketing elements. 57
  • 69. 3.1.25 About the need of new tools Table 3.25: About the need of new tools Response No of respondents Strongly agree 10 Agree 25 Neutral 2 Disagree 10 Strongly disagree 3 Percentage 20 50 4 20 6 Figure 3.25: About the need of new tools Analysis As from the above it can be seen that 20% of the respondents strongly agree that they need new tools to educate prospects about their industry or products. 50% of them agree with the same. Here only 4% of the respondents became neutral. 20% of the respondents disagree and 6% of the respondents strongly disagree with this. Inference 50% of the respondents agree that they need new tools to educate prospects about their industry or products. New tools can be used to increase brand visibility and also to increase awareness about the products among customers. 58
  • 70. 3.1.26 About the capturing of customer and prospect data Table 3.26: About the capturing of customer and prospect data Response No of respondents Strongly agree 9 Agree 18 Neutral 4 Disagree 12 Strongly disagree 7 Percentage 18 36 8 24 14 Figure 3.26: About the capturing of customer and prospect data Analysis As from the above it can be seen that 18% of the respondents strongly agree that they are capturing customer and prospect data to build a robust marketing database. 36% of them agree with the same. Here 8% of the respondents became neutral. 24% of the respondents disagree and 14% of the respondents strongly disagree with this. Inference 36% of the respondents agree that they are capturing customer and prospect data to build a robust marketing database. This indicates that KTDC uses relationship marketing to retain customers. 59
  • 71. 3.1.27 About the compiling of email address Table 3.27: About the compiling of email address Response No of respondents Strongly agree 13 Agree 30 Neutral 3 Disagree 2 Strongly disagree 2 Percentage 26 60 6 4 4 Figure 3.27: About the compiling of email address Analysis As from the above it can be seen that 26% of the respondents strongly agree that they are compiling email address for an ongoing sales dialogue. 60% of them agree with the same. Here 6% of the respondents became neutral. 4% strongly disagreed to it and an equal number disagreed to the same. Inference 60% of the respondents agree that they are compiling email address for an ongoing sales dialogue. This indicates that KTDC is using relationship marketing to retain customers. 60
  • 72. 3.1.28 About the website Table 3.28: About the website Response No of respondents Strongly agree 17 Agree 18 Neutral 1 Disagree 10 Strongly disagree 4 Percentage 34 36 2 20 8 Figure 3.28: About the website Analysis As from the above it can be seen that 34% of the respondents strongly agree that their website is build around the needs and interest of its visitors. 36% of them agree with the same. Here only 2% of the respondents became neutral. 20% of the respondents disagree and 8% of the respondents strongly disagree with this. Inference 36% of the respondents agree that their website is build around the needs and interest of its visitors. KTDC has build its website in such a way that required informations are easily accessible for the visitors. 61
  • 73. 3.1.29 SEO of website Table 3.29: SEO of website Response No of respondents Strongly agree 13 Agree 15 Neutral 4 Disagree 13 Strongly disagree 5 Percentage 26 30 8 26 10 Figure 3.29: SEO of website Analysis 30% of the employees agreed that the KTDCs site is fully optimized for search engines. 26% strongly agreed to the statement and an equal number disagreed to the same. 10% strongly disagreed to it and 8% remained neutral. Inference Majority of the employees agrees that KTDCs site is fully optimized for search engines. This shows that KTDC has given importance for internet marketing. 62
  • 74. 3.1.30 Focusing of marketing campaigns Table 3.30: Focusing of marketing campaigns Response No of respondents Strongly agree 11 Agree 19 Neutral 2 Disagree 10 Strongly disagree 8 Percentage 22 38 4 20 16 Figure 3.30: Focusing of marketing campaigns Analysis As from the above it can be seen that 22% of the respondents strongly agree that they are understand the factors buyer consider when selecting their product or service and they are focusing their marketing campaigns on those factors. 38% of them agree with this. Here only 4% of the respondents became neutral. 20% of the respondents disagree and 16% of the respondents strongly disagree with this. Inference 38% of the respondents agree that they are understand the factors buyer consider when selecting their product or service and they are focusing their marketing campaigns on those factors. This shows that KTDC caters to the needs of customers. 63
  • 75. 3.2 Chi Square test The Chi-Square distribution is merely the distribution of the sum of the squares of a set of normally distributed random variables. Its value stems from the fact that the sum of random variables from any distribution can be closely approximated by a normal distribution as the sum includes a greater and greater number of samples. Thus the test is widely applicable for all distributions. The chi- square test is one of the simplest and most widely used nonparametric test in statistical work. The symbol χ is the Greek letter Chi. The chi square test was first used by Karl Pearson in the year 1990. The quantity of χ2 describes the magnitude of the discrepancy between theory and observation. It is defined where O refers to the observed frequencies and E refers to the expected frequencies. 3.2.1 Test of independence With the help of chi-square test we can find out whether two or more attributes are associated or not. In order to test whether or not the attributes are associated, we take the null hypothesis that there is no association in the attributes under study or, in other words , the attributes are independent. Table 3.31: Contingency Table Response Strongly agree Agree Neutral Disagree Strongly Disagree Total SA A N D SD Total 4 5 1 2 0 12 15.42 26 2 6.58 2 52 4.5 4 0 1.5 3 13 0 5 2 6 1 14 2 2 1 2.16 1.84 9 25.92 42 6 18.24 7.84 100 In the Table 3.31 SA= Strongly Agree A= Agree N= Neutral D= Disagree SD= Strongly Disagree 64
  • 76. The response given vertically in the Table 3.31 refers to that of marketing channel and response given horizontally in the Table 3.31 refers to that of marketing strategies. Hypothesis 1 Ho: There is no significant difference between efficiency of marketing channel and marketing strategies. H1: There is significant difference between efficiency of marketing channel and marketing strategies Table 3.32: Observation Table for Hypothesi 1 OBSERVED 4 5 1 2 0 15.42 26 2 6.58 2 4.5 4 0 1.5 3 0 5 2 6 1 2 2 1 2.16 1.84 EXPECTED (O-E) 3.11 0.89 5.04 -0.04 0.72 0.28 2.188 -0.188 0.94 -0.94 13.478 1.942 21.84 4.16 3.12 -1.12 9.48 -2.9 4.076 -2.076 3.36 1.14 5.46 -1.46 0.78 -0.78 2.37 -0.87 1.02 1.98 3.62 -3.62 5.88 -0.88 0.84 1.16 2.55 3.45 1.09 -0.09 2.33 -0.33 3.78 -1.78 0.54 0.46 1.61 0.55 0.705 1.135 65 (O − E)2 0.7921 0.0016 0.0784 0.035344 0.8836 3.771364 17.3056 1.2544 8.41 4.309776 1.2996 2.1316 0.6084 0.7569 3.9204 13.1044 0.7744 1.3456 11.9025 0.0081 0.1089 3.1684 0.2116 0.3025 1.288225 CHI-CONTRIBUTION 0.254695 0.000317 0.108889 0.016154 0.94 0.279816 0.792381 0.402051 0.887131 1.057354 0.386786 0.390403 0.78 0.319367 3.843529 3.62 0.131701 1.601905 4.667647 0.007431 0.046738 0.838201 0.391852 0.187888 1.82727 23.77951
  • 77. Calculated Chi- Square value from the table 3.32 is 23.77951 Degree of freedom = (r-1) (c-1) = (5-1) (5-1) = 16 Table value of Chi square for 4 degree of freedom at 5% level of significance = 24.996 Inference When tested at 5% level of significance it is found that the table value is higher than the calculated value. So null hypothesis is accepted. Hence it is concluded that there is no significant difference between efficiency of marketing channel and marketing strategies. Figure 3.31: Chart of observed and expected values Hypothesis 2 Ho: There is no significant difference between gender and opinion about marketing strategy. H1: There is significant difference between gender and opinion about marketing strategy. Observed and expected value for testing the current hypothesis can be referred from Table 3.33 66
  • 78. Table 3.33: Analysis Table Observed 16.4 29 4 16.76 5.84 9.52 13 2 1.48 2 Expected (O-E) 18.66 -2.26 30.24 -1.24 4.32 -0.32 13.132 3.628 5.64 0.2 7.25 2.27 11.76 1.24 1.68 0.32 5.1 -3.62 2.192 -0.192 (O − E)2 Chi-contribution 5.1076 0.273719 1.5376 0.050847 0.1024 0.023704 13.162384 1.002314 0.04 0.007092 5.1529 0.710745 1.5376 0.130748 0.1024 0.060952 13.1044 2.56949 0.036864 4.829611 9.659222 Chi- Square value calculated from the Table 3.33 is 9.659222 Degree of freedom =(r-1) (c-1) =(2-1) (5-1) = 4 Table value χ2 for 4 degree of freedom at 5% level of significance = 9.488 Inference When tested at 5% level of significance it is found that the table value is less than the calculated value. So null hypothesis is rejected. Hence it is concluded that there is significant difference between gender and opinion about marketing strategy. 3.2.2 Test of Goodness of Fit Chi- Square test enables us to see how well the assumed theoretical distribution fits to the observed data. When some theoretical distribution fitted to the given data, we are always interested in knowing as to how well this distribution fit with the observed data. The Chi- Square test can give answer to this. If the calculated value of Chi- Square is less than the table value at a certain level of significance, the fit is considered to be a good one which means that the divergence between the observed and expected frequencies is attributable to fluctuation of sampling. But if the calculated value of χ2 is greater than its table value, the fit is not considered to be good one. 67
  • 79. Hypothesis 3 H0: There is goodness-of-fit between the opinion about integration of social Media into traditional marketing tactics like direct mail and advertisement. H1: There is no goodness-of-fit between the opinion about integration of social Media into traditional marketing tactics like direct mail and advertisement. Refer Figure 3.31 for this hypothesis testing. Table 3.34: χ2 goodness-of-fit test for observed counts in variable Category 1 2 3 4 5 Observed 21 20 1 7 1 Test proportion 0.2 0.2 0.2 0.2 0.2 Expected 10 10 10 10 10 N=50 χ-contribution 12.1 10 8.1 0.9 8.1 39.2 Degree of freedom = (n-1) = (5-1) = 4 Chi-Square value obtained from the Table 3.34 is 39.2 p- value 0.000 Table value χ2 for 4 degree of freedom at 5% level of significance = 9.488 Inference When tested at 5% level of significance it is found that the table value is less than the calculated value. So null hypothesis is rejected. Hence it is concluded that there is no goodness-of-fit between the opinion about integration of rural Media into traditional marketing tactics like direct mail and advertisement 68
  • 80. Figure 3.32: Chart of contribution to chi-square value by category 3.3 Correlation Coefficient In statistics, dependence refers to any statistical relationship between two random variables or two sets of data. Correlation refers to any of a broad class of statistical relationships involving dependence. The most familiar measure of dependence between two quantities is the Pearson product-moment correlation coefficient, or ”Pearson’s correlation coefficient”, commonly called simply ”the correlation coefficient”. It is obtained by dividing the covariance of the two variables by the product of their standard deviations. Correlation coefficient is an algebraic method of measuring correlation. Under this method, we measure correlation by finding a value known as the coefficient of correlation using an appropriate formula. Correlation coefficient is a numerical value. It shows the degree or the extent of correlation between two variables. Hypothesis 4 Ho: There is no association between opinion about sales tools are integrated with brand and marketing strategies H1: There is association between opinion about sales tools are integrated with brand and marketing strategies 69
  • 81. Refer Table 3.35 for this hypothesis testing. In the Table 3.35 x= Sales tools y= Marketing Strategies. Table 3.35: Observation Table Response x y xy x2 y2 Strongly agree 19 25.92 492.48 361 671.8464 Agree 12 42 504 144 1764 Neutral 8 6 48 64 36 Disagree 7 18.24 127.68 49 332.6976 Strongly Disagree 4 7.84 31.36 16 61.4656 Total 50 100 1203.52 634 2866.01 Inference It can be seen that the calculated coefficient of correlation is 0.597438687. Hence we accept the null hypothesis. There is no association between opinion about sales tools are integrated with brand and marketing strategies. 70
  • 82. 3.4 Weighted Average Method Weighted average is an average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average. In this study we have taken four factors whose prime importance have to be understood. The factors considered are communication, marketing channel, search engine and marketing campaign. By using weighted average method the ranking of factors is done. Table 3.36: Attribute Response Table Sl.No Attributes 1 Strongly agree 2 Agree 3 Neutral 4 Disagree 5 Strongly Disagree Total x1 24 36 4 28 8 100 x2 x3 10 20 58 30 4 16 18 26 10 8 100 100 In the Table 3.36 x1 = Communication, x2 = Marketing channel, x3 = Search engine, x4 = Marketing campaign. Formula for weighted average method is Weighted average = Wx/W W = Number of respondents x = Rating given by the respondents. 71 x4 38 24 16 14 8 100 Total 92 148 40 86 34 400
  • 83. Based on the formula Table 3.37 is tabulated. Table 3.37: Weighted Average of Attributes x 1 2 3 4 5 W 5 4 3 2 1 Total x1 24 36 4 28 8 100 Wx1 120 144 12 56 8 340 x2 Wx2 10 50 58 232 4 16 18 36 10 10 100 344 x3 Wx3 20 100 30 120 16 48 26 52 8 8 100 328 x4 38 24 16 14 8 100 Wx4 190 96 48 28 8 370 Inference From the table 3.37, it is found that combined weighted average of attributes i.e, communication, marketing channel, search engine and marketing campaign are 3.4, 3.44, 3.28 and 3.7 respectively. Hence marketing campaign is ranked 1st, marketing channel is ranked 2nd , communication ranked 3rd, and search engine ranked 4th. This analysis shows that marketing campaign is the pivotal entity of marketing strategies. 72
  • 84. Chapter 4 Findings and Suggestions This chapter presents the findings and suggestions. The major findings derived from data analysis and interpretation are presented here. The suggestions discussed here will provide a framework for KTDC to develop a new marketing plan. 4.1 Findings On analysis, the following trends and profiles were noted. 4.1.1 Demographic profile • 72% of the respondents are males. • 60% of the respondents are graduates. • 56% of the respondents are aged between 31 and 40. • 44% of the respondents have more than 10 years of experience. • 36% of the respondents earn between 10001 and 20000. 4.1.2 Findings related to marketing strategies • 36% of the respondents agree that their brand clearly communicates what they are and conveys the highest value they deliver. This indicates that the brand used by KTDC conveys the intended message.
  • 85. • 54% of the respondents agree that KTDCs brand identity is being popularly used in all media. The major medias used by KTDC are Travel magazines, brochures, television commercials, internet (social media, websites, other travel forums) etc • KTDC is fully aware about its most profitable customers and they are targeting such customers and prospects. This shows that KTDC is aware about its profitable customers and by targeting such customers, KTDC is increasing its profit. • 42% of the respondents agree that the customers changed the way find, buy, or use KTDCs product or service and they have adjusted their marketing plan accordingly. The Internet has changed everything. Population with Internet access use it to decide where to travel, where to live, where to work or where to establish a business. Hence KTDC considers internet as their major marketing priority. • 62% of the respondents agree that they are actively up selling and cross selling products and services to their current customers. eg:- The tourists visiting Kovalam gets brochure about Thenmala Eco Tourism, Bolgatti Palace and other tourists attraction in Kerala. Here there is active cross selling of products. • 42% of the respondents agree that they have three to five key marketing messages that they are consistently delivered in all media. KTDC mainly showcases the location, facilities provided and other related items. These are consistently delivered in all media. • 34% of the respondents strongly agree that their marketing messages match the experience customers have when they interact with their staff. The training given to the employees ensures that they deliver a standardized service to all customers. • 36% of the respondents agree that they are tailoring messages to specific segments when they have the opportunity to do so. This means marketing tactics used are flexible. KTDC has got different products and each caters to a specific market segment. eg: Premium Hotels for upper class customers, Tamarind Easy Hotels for middle class customers etc. 74
  • 86. • 36% of the respondents agree that it is time to shift some or more of their marketing to new channels such as social media and mobile marketing. Population which has access to internet use the same for almost all activities. Whether it be a job, a place to travel or anything, they rely on internet. Social media has now become a platform for discussing and sharing the travel experience. So it became necessary to shift some of marketing to new channels such as social media and mobile marketing. • 58% of the respondents agree that they are maximizing the value of the proprietary channels they control, such as newsletters, invoices, product packaging and inserts, vehicles and buildings. KTDC has got several marketing tools and they are utilizing it effectively. • 36% of the respondents agree that the marketing tactics are generating the best results- leads, conversions or sales at the lowest cost. This indicates that the marketing tactics used is very effective. • 42% of the respondents agree that they are integrating social media into traditional marketing tactics like direct mail and advertising. This shows that KTDC understands the importance of social media in marketing its products and they are integrating the same into traditional marketing tactics like direct mail and advertising. • 54% of the respondents agree that their creative is attention getting and it stands out in a crowded market place. The creative designs or features used in ads, brochure etc are attention getting and it is unique which makes it to differentiate from its competitors. Products are also designed in such a way that it is attention getting. eg: Rain tourism ads, Eco Tourism ads etc • 36% of the respondents agree that their call to action is loud and clear. Their prospects know exactly what to do next after reviewing their marketing materials. This indicates that messages conveyed in marketing material are appropriate and very clear. eg: KTDC Hotel Tariff brochure contains major tourist sites in Kerala, KTDC hotels near to the same, tariff, facilities provided in hotels, contact numbers, addresses, road map etc... The marketing materials contains all necessary information at a glance. • 50% of the respondents strongly agree that KTDCs offer is resonating with prospects and more and more people saying yes. KTDCs offers are tailored 75
  • 87. according to the market segment. The offers are made based on the customer buying behavior and they are effective. • 64% of the respondents agree that their offers showcase their products. The brochures, ads and other marketing materials used showcases different products of KTDC. These are consistently delivered in all media which ensures that marketing messages delivered are same. • 56% of the respondents agree that their offer delivers real value to the product. KTDC hotels gives more value to the customers. The amenities, facilities etc provided are worth the money spend by each customer. In order to cater to all market segments, KTDC hotels are designed accordingly. Eg:Premium Hotels, Tamarind Easy Hotels, Budget Hotels etc. • 58% of the respondents agree that their sales brochures displays and sales demonstration tools are accurate, complete and up to date. This shows that KTDC updates its sales displays and sales demonstration tools frequently, thereby making them matching with the market needs. • Majority of the of the respondents strongly agree that their sales tools are integrated with their brand and their marketing campaigns. This indicates that marketing strategy is made by inter connecting marketing elements. • 50% of the respondents agree that they need new tools to educate prospects about their industry or products. New tools can be used to increase brand visibility and also to increase awareness about the products among customers. • 60% of the respondents agree that they are compiling email address for an ongoing sales dialogue. This is a part of strategy used by KTDC to retain customers. Customer acquisition is more costly than customer retention. By using emails, new products and offers are send to the customers. This is done to get the attention of customers for an ongoing sales dialogue which may create a repeat customer in future. • 36% of the respondents agree that their website is build around the needs and interest of its visitors. KTDC has build its website in such a way that required informations are easily accessible for the visitors. • 30% of the respondents agree that their site is fully optimized for search engines. Search engine optimization helps the website to be listed in first 76
  • 88. page of search engines. This shows that KTDC has given importance for internet marketing. • 38% of the respondents agree that they are understand the factors buyer consider when selecting their product or service and they are focusing their marketing campaigns on those factors. Tourists want to have a great experience once they visit the place, so when they look in to the ads, they want to have similar experiences which the people portrayed in the ad had. Eg:In Rain tourism ad, a couple enjoying the rain in house boat was shown. So naturally when a potential customer look at the same, he wants to have a similar experience and that is the purpose of his visit. • Marketing channels used are in accordance with the marketing strategies implemented. Marketing channels used include print media, television, marketing campaigns etc. The main goal of marketing strategy is to increase the profit. By using the marketing channels effectively the goal is achieved. • Social media is integrated with traditional marketing tactics like direct mail and advertising. Social media has now become a platform for sharing travel experience and hence Social media is integrated with traditional marketing tactics like direct mail and advertising. • There is significant difference between gender and opinion about marketing strategies. Majority of the respondents are males, so in this study we have got opinion about marketing strategies mainly from a male employee perspective. • Out of the marketing tools used marketing campaign is the pivotal entity. Marketing campaign has always been a important tool to market Kerala Tourism activities. Marketing campaign helped to increase the awareness about Kerala Tourism among potential and existing customers. 4.2 Suggestions From the above findings following suggestions are put forward. To improve the internal marketing Based on the discussions in Sections 3.1.8, 3.1.9 and 3.1.12, • Company should have staff meetings to keep the employees up dated on the hotels marketing objectives and upcoming marketing actions. Give clear 77
  • 89. instructions and authorization so that the employees are aware of their duties and what they are allowed to do in different customer related situations. • Lower to middle-level front-line officials of Central and States Tourism Departments including those posted in tourist offices are usually in regular contact with the tourists may be given accessibility-specific training. To improve the customer retention practices Based on the discussions in Sections 3.1.20, 3.1.26 and 3.1.27 . • In order to take into account the seasonality in customer flows, market segmentation should be done more effectively. More effort should be put into taking care of the regular customers.Partner with the expert players in the tourism industry as a whole to gain from their experience. • Develop a loyal customer program: Gather and maintain a list of items or other bonuses that the loyal customer can receive; discount on the room rate, better room type, chocolates/ other items delivered to the room before arrival. • By contacting the customer for example by email and thanking for the feedback and promising to take it into account of their feedback makes the customer feel more in contact with the hotel. Responding to the feedback also gives an image of the hotel that it wants to be involved. To improve the effective utilization of marketing channels Based on the discussions in Sections 3.1.14, 3.1.30, 3.1.24 and 3.1.23. • Plan and develop different kinds of marketing campaigns and offers. Create and develop new campaigns on monthly bases. They can be derived for example from the different seasons or holidays. They can be directed to specific customer group. Market these campaigns on the company’s web pages. Create and develop new campaigns on monthly bases. • Descriptive brochures and images about tourism activities, which relate to its special qualities and is tailored to target markets, should be prepared for use in destination marketing vehicles. • Optimize the marketing materials for mobile as 20% of all web traffic comes from mobile. 78
  • 90. • Visitor information kiosks can offer the information visitors need 24 hours a day/7 days a week. Besides having kiosks at the rest areas, they should be placed strategically throughout the county so that they can cross-promote activities, events, attractions and amenities. The more visitors see there is to do in the county, the longer they will stay and the more money they will spend. Every site should cross-sell to other sites, attractions and amenities. Kiosks come in all shapes and sizes - they should be designed to fit the character of the town or location. Maintain and stock them regularly. Keep the information up-to-date. • Promote activities, not just scenic vistas and ambiance. When people see others doing fun activities in a great setting, it is easy for them to imagine themselves there too. Promote people over places. • Promote experiences over locations. Location is always second to the activity, people are looking for things to do first, then they will consider the general location second. Visitors do not really care about boundaries - it does not matter if they are in a specific region, county, district, city or town. • Promote the EXPERIENCE.Brands are perceptions, and the perception is based on what people expect to experience. Base the brand on activities that is what people are looking for. Great photography that shows people having a great time helps your potential visitors imagine themselves doing the same thing. To improve the Internet marketing Based on the Sections 3.1.17, 3.1.27 and 3.1.28. • Internet has a pivotal role in getting more customers; hence the full potential of Internet should be used. The following suggestions will help for the same. a) Customers have a mindset to book or check in hotels that first come in the google search and map results. Hence dominate google local search and map results. b) Social media should be used to give relevant updates. Communicate with social media audience via relevant and engaging content. c) Email marketing continues to be an effective tool for staying top of mind with customers which leads to better retention. Email campaigns are also helpful. Also include a link to company website in the email signatures. 79
  • 91. d) Be active in relevant travel & hotel communities. e )Create videos and distribute online, also add the same to own website. f) Conduct online contests, give discounts and exclusive packages to winners. 80
  • 92. Chapter 5 Conclusions In this project the effectiveness of marketing elements such as brand, marketing messages, marketing channels, marketing tactics, creative approaches, offers, sales tools, data and website had been studied from the view point of employees. From the study it is understood that the organisation needs to improve its marketing channels and marketing tactics. This project strongly recommends that the organisation should improve its internal marketing, innovative customer retention practices, Internet marketing and use of marketing channels. Results of analyses in this project report show that any organization in travel and tourism industry should update its facilities. It should take steps forward to gain new customer groups. It should also adopt a new approach to keep the customers satisfied and to retain them.
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  • 95. Appendix Questionnaire Title: A study on internal perspective of marketing strategies implemented by KTDC Personal details Gender: Male Female Age: 20-30 31-40 41 and above Qualification: Plus Two Experience: Less than 1 year Degree Technical 1-5 years PG 6-10 years Above 10 Years Income: 5000-10000 10001-20000 20001-30000 Above 30000 1.The brands used by KTDC clearly communicates what they are about and convey the highest value they deliver Strongly agree Agree Neutral Disagree Strongly disagree 2.The brand identity is being popularly used in all media Strongly agree Agree Neutral Disagree Strongly disagree 3.KTDC know its most profitable customers and they are targeting prospects that look like their best customer Strongly agree Agree Neutral Disagree Strongly disagree 4.Customers changed the way they find, buy, or use KTDCs product or service and KTDC have adjusted its marketing plan accordingly Strongly agree Agree Neutral Disagree Strongly disagree
  • 96. 5.KTDC is actively up-selling and cross-selling products and services to their current customers Strongly agree Agree Neutral Disagree Strongly disagree 6.KTDC have three to five key marketing messages that theyre consistently delivering in all media Strongly agree Agree Neutral Disagree Strongly disagree 7.These messages match the experience customers have when they interact with KTDCs staff Strongly agree Agree Neutral Disagree Strongly disagree 8.KTDC is tailoring messages to specific market segments when they have the opportunity to do so Strongly agree Agree Neutral Disagree Strongly disagree 9.It is time to shift some or more of KTDCs marketing to new channels such as social media and mobile marketing Strongly agree Agree Neutral Disagree Strongly disagree 10.KTDC is maximizing the value of the proprietary channels they control, such as newsletters, invoices, product packaging and inserts, vehicles, and buildings Strongly agree Agree Neutral Disagree Strongly disagree 11.Marketing tactics are generating the best results leads, conversions, or sales at the lowest cost Strongly agree Agree Neutral II Disagree Strongly disagree
  • 97. 12.KTDC is integrating social media into traditional marketing tactics like direct mail and advertising Strongly agree Agree Neutral Disagree Strongly disagree 13.KTDCs creative is attention-getting. It stands out in a crowded marketplace Strongly agree Agree Neutral Disagree Strongly disagree 14.KTDCs call to action is loud and clear. KTDCs prospect know exactly what to do next after reviewing our marketing materials Strongly agree Agree Neutral Disagree Strongly disagree 15.KTDCs offer is resonating with prospects. More and more people are saying yes Strongly agree Agree Neutral Disagree Strongly disagree Disagree Strongly disagree 16.KTDCs offers showcase their product Strongly agree Agree Neutral 17.KTDC offer delivers real value to the prospect Strongly agree Agree Neutral Disagree Strongly disagree 18.KTDCs sales brochures, displays, and sales demonstration tools are accurate, complete, and up to date Strongly agree Agree Neutral Disagree Strongly disagree 19.Sales tools are integrated with KTDCs brand and their marketing campaigns Strongly agree Agree Neutral III Disagree Strongly disagree
  • 98. 20.New tools are required to educate prospects about our industry or product Strongly agree Agree Neutral Disagree Strongly disagree 21.KTDC is capturing customer and prospect data to build a robust marketing database Strongly agree Agree Neutral Disagree Strongly disagree 22.KTDC is compiling email addresses for an ongoing sales dialogue Strongly agree Agree Neutral Disagree Strongly disagree 23.KTDCs website is built around the needs and interests of their visitors Strongly agree Agree Neutral Disagree Strongly disagree 24.KTDCs site is fully optimized for search engines Strongly agree Agree Neutral Disagree Strongly disagree 25.KTDC understand the factors buyers consider when selecting their product or service and they are focusing their marketing campaigns on those factors Strongly agree Agree Neutral IV Disagree Strongly disagree