Mini project report manendra shuklaDocument Transcript
Mini Project Report ON Integration Project – 1 and Integration Project – 2”Submitted for the partial fulfillment of therequirement of Postgraduate Diploma inManagement Program inBy:MANENDRA SHUKLA(2010-12)
ACKNOWLEDGEMENTAs any other report the success of this report is the result of activeinvolvement of many people from time of inception of an idea till theend. Many brains has worked together to make this exclusive andinformative report on Integration Project-1 and Integration Project –2.With a great pleasure and privilege I am presenting this report withmy deepest gratitude to our institute for providing us this immense.I would like to acknowledge my sincere thanks, to Mr. Manoj Sahay(Marketing Professor) for his guidance throughout the project, hisinterest, enthusiasm and Involvement had been greatest motivationalfactor during the study.It is a privilege to have weighty appreciation to all panel members forgiving me complete support and cooperation, and for helping me withthe knowledge regarding the planning of the business and executionof the same.Special and sincere thanks to all the respondents who co-operatedwith me and share their suggestions and recommendation.
DeclarationI hereby declare that this project report titled “Integration Project – 1 and Integration Project – 2”Is submitted by me to MASTER SCHOOL OF MANAGEMENT,MEERUT is a bonafide work undertaken by me and it is not submittedto any other University or Institute for the award of any Degree /Diploma / Certificate or published any time before. .Place: Meerut ………………………………Date: (MANENDRA SHUKLA)
INTEGRATION PAPER- 1INTRODUCTION-Promotion is the marketing term used to describe all marketing communicationsactivities and includes personal selling, sales promotion, public relations, directmarketing, trade fairs and exhibitions, advertising and sponsorship. Promotionneeds to be precisely coordinated and integrated into the businesses globalcommunications message, and this is called Integrated MarketingCommunications (IMC). IMC integrates the message through the availablechannels to deliver a consistent and clear message about your company’sbrands, products and services. Any movement away from the single messageconfuses the consumer and undermines the brand.The promotions mix (the marketing communications mix) is the specific blend ofpromotion tools that the company uses to persuasively communicate customervalue and build customer relationships.Promotion is the element of the marketing mix which is entirely responsible forcommunicating the marketing proposition. Marketers work hard to create aunique marketing proposition for their product or service. McDonalds is aboutcommunity, food and enjoyment. Audi is about the driver experience andtechnologyMEANING AND IMPORTANCE OF PROMOTION-Communication plays an important role in marketing. Communication perform thefunction of informing the target customer about the nature and type of the firmsproduct and services, their unique benefits, uses and features as well as theprice and place at which these products can be purchased. The nature ofmarketing communication is persuasive since it aims at influencing the consumerbehavior in favor of the firms offering. These persuasive communications arecommonly called "Promotion". In the context of marketing promotion refers to theapplied communication used by marketers to exchange persuasive messagesand information between the firm and its various prospective customers andgeneral public.
Marketing communication is the essential element of the promotion function ofmarketing. Effective marketing depends on effective management of itspromotion function. Effective promotion comes through effective communication.Success of products like hot-shot camera, Maggie 2 minute noodles, Khaitanfans, and UTIs ULIPscheme are purely depend on the promotion function played by the respectivemarketing firms. There are products which are failed due to the lack of effectivepromotion.With the growing competition in the market place as well as the customersbecoming better informed and more choosy, it is important now that marketingcommunications of the right kind only are made to the right group of targetbuyers. Giving below the purpose of Promotion:Communicating information-The job of marketing is to identify consumer wants and then satisfy these wantswith the right kind of products, at the right place and at the right price. Thepurpose of promotion in the marketing function is to convey to customers aboutthe features of the product and how it will satisfy consumer wants or any otherrelevant information needed by consumers to affect sales. For example, if arefrigerator manufacturer is planning to offer off-season discount, it is essentialto communicate to potential customers about the extent of discount, periodduring which discount is available, name of the stores where it is available etc. Ifall such information is not communicated to potential customers, lowering ofprices will not be beneficial to either the consumer or the manufacturer.Promotion is, thus, an essential part of the marketing function as it is essentiallycommunication.Promotion is persuasive Communication- In any free enterprise system where firms develop and offer a wide range of newand better products, there are full of messages and distractions of all sorts.Consumer often have to select the products from among a wise range ofcompeting products. As consumers do not have time and energy to compare thecompeting products physically, they turn to advertisements for productinformation. The present business environment being highly competitive, eachfirm wants the customers to buy its brand. Thus, persuasion is another goal ofpromotion. In other words, promotion is persuasive communication.
Promotion serves as a reminder-Consider a customer who regularly buys Colgate Toothpaste or Lux Soap. Domarketers of Colgate Toothpaste or Lux Soap advertise to appeal to suchcustomers. The answer is yes, because even the most loyal customers must bereminded that t product has served them well over the years and about thefeatures that make the product attractive. This is more so in an environmentwhere competitors consistently attempt to attract the customers of competingbrands with their own informative and persuasive message. Thus, in addition toinforming and persuading, another important purpose of promotion is remindingcustomers. This is why even when the manufactures of well establishedproducts like Colgate, Lux, Surf, Nescafe, Lifebuoy etc. also advertise quiteextensively to sustain customers preference for these products.ELEMENTS OF PROMOTION MIX-Think of it like a cake mix, the basic ingredients are always the same. However ifyou vary the amounts of one of the ingredients, the final outcome is different. It isthe same with promotions. You can integrate different aspects of the promotionsmix to deliver a unique campaign. Now lets look at the different elements of thepromotions mix.The elements of the promotions mix are: • Personal Selling. • Sales Promotion. • Public Relations. • Direct Mail. • Trade Fairs and Exhibitions. • Advertising. • Sponsorship. • Online promotions.PROMOTIONAL TOOLS-
Let us look at the individual components of the promotions mix in more detail.Remember all of the elements are integrated to form a specific communicationscampaign.1. Personal Selling-Personal Selling is an effective way to manage personal customer relationships.The sales person acts on behalf of the organization. They tend to be well trainedin the approaches and techniques of personal selling. However sales people arevery expensive and should only be used where there is a genuine return oninvestment. For example salesmen are often used to sell cars or homeimprovements where the margin is high.2. Sales Promotion-. Sales promotions tend to be thought of as being all promotions apart fromadvertising, personal selling, and public relations. For example the BOGOFpromotion, or Buy One Get One Free. Others include couponing, money-offpromotions, competitions, free accessories (such as free blades with a newrazor), introductory offers (such as buy digital TV and get free installation), andso on. Each sales promotion should be carefully costed and compared with thenext best alternative.3. Public Relations (PR)-Public Relations is defined as the deliberate, planned and sustained effort toestablish and maintain mutual understanding between an organization and itspublics (Institute of Public Relations). PR can be relatively cheap, but it iscertainly not free. Successful strategies tend to be long-term and plan for alleventualities. All airlines exploit PR; just watch what happens when there is anincident. The pre-planned PR machine clicks in very quickly with a very effectiverehearsed plan.
4. Direct Marketing-Direct marketing is any marketing undertaken without a distributor orintermediary. In terms of promotion it means that the marketing company hasdirect communication with the customer. For example Nintendo distributes viaretailers, although you can register directly with them for information which isoften delivered by e-mail or mail.Direct mail is very highly focussed upon targeting consumers based upon adatabase. As with all marketing, the potential consumer is targeted based upon aseries of attributes and similarities. Creative agencies work with marketers todesign a highly focussed communication in the form of a mailing. The mail is sentout to the potential consumers and responses are carefully monitored. Forexample, if you are marketing medical text books, you would use a database ofdoctors surgeries as the basis of your mail shot.Similarly e-mail is a form of online direct marketing. You register, or opt in, to joina mailing list for your favourite website. You confirm that you have opted in, andthen you will receive newsletters and e-mails based upon your favourite topics.You need to be able to unsubscribe at any time, or opt out. Mailing lists whichgenerate sales are like gold dust to the online marketer. Make sure that you usea mailing list with integrity just as you would expect when you sign up. Themailing list needs to be kept up-to-date, and often forms the basis of onlineCustomer Relationship Management (CRM).5. Trade Fairs and Exhibitions-Such approaches are very good for making new contacts and renewing old ones.Companies will seldom sell much at such events. The purpose is to increaseawareness and to encourage trial. They offer the opportunity for companies tomeet with both the trade and the consumer.6. Advertising-Advertising is a paid for communication. It is used to develop attitudes, createawareness, and transmit information in order to gain a response from the targetmarket. There are many advertising media such as newspapers (local, national,free, trade), magazines and journals, television (local, national, terrestrial,satellite) cinema, outdoor advertising (such as posters, bus sides). There is muchmore about digital, online and Internet advertising further down this pages, aswell as throughout Marketing Teacher and the Marketing Teacher Blog.
7. Sponsorship-Sponsorship is where an organization pays to be associated with a particularevent, cause or image. Companies will sponsor sports events such as theOlympics or Formula One. The attributes of the event are then associated withthe sponsoring organization.The elements of the promotional mix are then integrated to form a unique, butcoherent campaign.8.Online Promotions-Online promotions will include many of the promotions mix elements which weconsidered above. For example advertising exists online with pay per clickadvertising which is marketed by Google. You can sponsor are website forexample. Online businesses regularly send out newsletters which are targetedusing e-mail and mailing lists, which is a form of direct marketing. Indeedwebsites are premium vehicle in the public relations industry to communicateparticular points of view to relevant publics.The online promotions field is indeed emerging. The field will soon spread intoGeo targeting of adverts to people in specific locations via smart phones. Anotherexample would be how social media targets adverts to you whilst you socialisingonline. Take a look at Marketing Teachers Blog for more up-to-date examples ofthe emerging online promotions space.Brochure Printing – one of the most effectivepromotional tools in modern trendsBrochure printing is an easiest and quickest way for advertising any business. Abad brochure cannot bring the expected results. So, if you are planning forbrochure printing then must state the messages clearly giving an attractive looksto your brochure.The color and graph that need to be used in it should be made with the use of fullcolor and design. Making it, you not only can showcase something extraordinarybut as well can give a tough competition to the competitors. You can includeeverything you expect in it like short discussion of each product which keeps itspecial and effective from others.
Adding good photos taken by professional photographers are always a god ideato add in brochures but one thing that should be taken into consideration is itsprint size in which the image can easily fit into.Uniqueness is important to develop the brand identity of the company andtherefore you need to avoid copying other companies can easily increase nameand fame of the company or brand.Color brochure printing demand has also increased today by the companies inpromoting their products or services in order to add up great impression on theirvaluable customers. Both small and big companies prefer to enjoy cheapbrochure printing to maintain the economy of the company. Some of the pointsthat need to consider when printing brochures include use of correct paper,strong headline, edifying body, use of bullet points to highlight important points,using image/graphics and more.Advantages of color Brochure Printing-*Offer More Sales – Choosing best quality brochures printing for marketingpurpose help you in increasing sales of your products or services.It helps in putting positive impression on the potential customers and thus theyuse your products or service. As a business owner, of you are keen to increasesales then its really a great idea to take a professional printing services.*Develop Your Business Image – A good brochure printing really help indeveloping your business image which means you get good business and alsomore sales. It as well put good impact on public relations elements.*Turn You Competitive – It is for sure that a good brochure printing services willallow you to become more competitive in the market. You also need to choosethe best services at the best price to leave your competitors behind from allperspectives.
*Add An Ever Lasting Impression – The colourful brochure printing help you inadding a long lasting impression on the users. This helps your reader to spendmore times on your brochures.Social Media – One of the most cost effective tools in moderntrendsSocial media represents low-cost tools that are used to combine technology andsocial interaction with the use of words. These tools are typically internet ormobile based. A few that you have probably heard of include Twitter, Facebook,MySpace and YouTube.Social media gives marketers a voice and a way to communicate with peers,customers and potential consumers. It personalizes the "brand" and helps you tospread your message in a relaxed and conversational way.The downfall to social media, if you could call it that is that it must be a part ofyour everyday life in order to keep the momentum and attention you need for it tobe successful.If you think that social media is only for the small business owners that are tryingout an experiment, I have to correct you. Here are just a few companies thathave become involved in social media:Absolut Vodka - Online Video on YouTube and Using Facebook to house theirTop Bartender fan page.BMW - Utilizing Facebook to promote their 1-Series Road Trip and they havecreated a Rampenfest Page for fans.Barack Obama - In my examples, I cant leave out future President BarackObama. He has been seen as a leader in the use of Twitter during thePresidential Election. He has over 170,000 followers and is following over165,000. Personally I remember the "twitter buzz" during the PresidentialDebates as well as the election.As you can see we have adult beverage companies, exotic automobilemanufacturers, pastry shops and our future President using social media tool, itsnot to hard to figure out that there is something to it.
Advantages of Social Media- *We can use social media to provide an identity to who we are and the products or services that we offer. *We can create relationships using social media with people who might not otherwise know about our products or service or what our companies represent. *Social media makes us "real" to consumers. If you want people to follow you dont just talk about the latest product news, but share your personality with them. *We can use social media to associate ourselves with our peers, that may be serving the same target market. *We can use social media to communicate and provide the interaction that consumers look for.Best ways to use social media- *You cannot just depend on social media, you must integrate it with other vehicles of marketing. While social media will create awareness, Im not convinced that in the beginning it will sell a million dollars worth of product. Thats not to say that one dayonce youve built up your social media "stardom" that it wont, but it probablywont happen tomorrow. *Be yourself, reflect personality. There are no written "right" or "wrong" rules when it comes to social media, only you can determine what will work for you. *Be consistent, if you do not plan on being consistent dont do it at all - its a waste of everyones time.Success stories are abundant when it comes using social media fromheadhunters that find job applicants to new businesses that want to introduce anew product as well as already established Fortune 500 companies that want tostrengthen their brand. The role of social media in your marketing is to use it as acommunication tool that makes you accessible to those interested in yourproduct and makes you visible to those that dont know your product. Use it as atool that creates a personality behind your brand and creates relationships that
you otherwise may never gain. This creates not only repeat-buyers, but customerloyalty. Fact is social media is so diversified that it can be used in whatever waybest suits the interest and the needs of your business.Factors that determine the type of promotional tools used-Each of the above components of the promotional mix has strengths andweaknesses. There are several factors that should be taken into account indeciding which, and how much of each tool to use in a promotional marketingcampaign:(1) Resource availability and the cost of each promotional toolAdvertising (particularly on television and in the national newspapers can be veryexpensive). The overall resource budget for the promotional campaign will oftendetermine which tools the business can afford to use.(2) Market size and concentrationIf a market size is small and the number of potential buyers is small, thenpersonal selling may be the most cost-effective promotional tool.A good example of this would be businesses selling software systems designedfor supermarket retailers. On the other hand, where markets are geographicallydisperse or, where there are substantial numbers of potential customers,advertising is usually the most effective.(3) Customer information needsSome potential customers need to be provided with detailed, complexinformation to help them evaluate a purchase (e.g. buyers of equipment fornuclear power stations, or health service managers investing in the latest medicaltechnology). In this situation, personal selling is almost always required - oftenusing selling teams rather than just one individual.By contrast, few consumers need much information about products such asbaked beans or bread. Promotional tools such as brand advertising and salespromotion are much more effective in this case.
How to achieve effective promotion mix?For achieving effective promotion mix, we need to understand following factors-Why is it important?If customers don’t know what products or services we provide, then our businesswill not survive in today’s competitive market place. Effective communication withour customers is vital to ensure that our business generates sales and profits. By taking the time to develop and implement an appropriate promotionalmix, we will stimulate our target audiences to buy our products or services andmanage this within a budget which we can afford.What we should do?A successful promotional mix uses a balance of its five tools in a planned andstructured way- a single tool rarely works well in isolation. The challenge is toselect the right mix of promotional activities to suit our particular business atparticular time and then use it correctly to achieve a result. The combination oftools we use will depend on the target audience, the message we wish tocommunicate and the budget we make available. There would be little point inadvertising new gas boilers in a fashion magazine- much more appropriate toadvertise in a trade magazines for builders and gas fitters.Here is a 10 step checklist for developing and managing our promotional mix. i) Decide how the products or services we provide can be ‘packaged’ together. The image of our business is formed by the way we promote the element of marketing mix. ii) Developing the profile of target audience for the message we will communicate. iii)Decide on the message to use whether we are trying to differentiate, remind, inform or persuade. We should set an objective for what should be achieved. We should clear about the benefits that we want to promote. iv)Decide what image of the product/ service/ business we want our audience to retain.
v)Decide on a budget. This is often how much we can afford given projected sales for the products or services. vi) Decide how the message should be delivered. We need to decide what aspects of promotional mix to use, think about taking our customers on a journey that starts by creating awareness about our business, through obtaining information about the products or services and by generating a sale. Each component of mix will achieve a different result. vii) Decide what actions we want our audience to take as a result of receiving our communication. It is not always ‘place an order’. viii) Put in place a means of measuring and controlling the plan once it is developed. ix) Undertake our promotional plans. Be consistent what we say and how we say it. x) Measure what we have achieved against the original objectives that we have set.Inter-functional Problem of Marketing-As an inter functional problem of marketing I have decided to take promotionalactivities and efforts as one of the problem . This problem effects both marketingas well as finance departments . If proper promotional activities are not takenplace then the firm cannot achieve its marketing goals thereby declining the salesvolume .on the other hand this problem also effects the finance department aslack of promotional efforts lead to declining of sales which ultimately pulls downthe the entire profit margins thereby creating hindrances in achieving the financialgoals of the firm . So from the above it is very much clear that in order to achieveany goals of the firm it must try to enhance and optimize its promotional efforts.Finance department is responsible for overall management of finances of thecompany. It is concerned with budgeting, costing, treasury management, riskdiversification etc. Finance department has to see that money is being distributedproperly.On the other hand, Marketing department is responsible for realizing the needs ofthe customers and then designing a product according to these needs so thatcustomers are satisfied.The main conflict between finance and marketing department is allocation of
funds. Finance department normally questions the expenditures by Marketingdepartment. They think that the promotional campaigns or the overall moneyspent on marketing function is not bringing about any benefit to the company andis too exuberant. On the other hand, Marketing department is constantly in needof funds. They normally are in conflict with the finance department because theythink their funds are justified and finance department is just being a hurdle.The marketing departments role is to create awareness and desire in the publicfor a product or service. It is generally creative, speculative and expensive. Thefinance departments role is to ensure that money is spent, but only on activitieswith a guaranteed return on investment. As such, the marketing departments jobis to show what might potentially be achieved if they had enough money, and thefinance departments job is to demand that they prove the viability of their ideasbefore releasing the money.Marketing cannot under any circumstances guarantee its own impact - it can onlypresent statistical analyses of potential and probable market take-up if certainmarketing strategies are applied. Finance is, by the nature of its role of custodianof a companys future existence, cautious with its funding. Somewhere in thegrey area in the middle is the space where harmonious working relationshipsbetween marketing and finance are born and thrive.Models Used to determine the promotional effortsof any firm : 1. Product life-cycle management (marketing)Product life-cycle management (or PLCM) is the succession of strategies usedby business management as a product goes through its life-cycle. The conditionsin which a product is sold (advertising, saturation) changes over time and mustbe managed as it moves through its succession of stages.
Product life-cycle (PLC) Like human beings, products also have an arc. Frombirth to death, human beings pass through various stages e.g. birth, growth,maturity, decline and death. A similar life-cycle is seen in the case of products.The product life cycle goes through multiple phases, involves many professionaldisciplines, and requires many skills, tools and processes. Product life cycle(PLC) has to do with the life of a product in the market with respect tobusiness/commercial costs and sales measures.To say that a product has a life cycle is to assert three things: Products have a limited life, Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
The four main stages of a products life cycle and the accompanyingcharacteristics are:Stage Characteristics 1. costs are very high 2. slow sales volumes to start 3. little or no competition1. Marketintroduction stage 4. demand has to be created 5. customers have to be prompted to try the product 6. makes no money at this stage 1. costs reduced due to economies of scale 2. sales volume increases significantly 3. profitability begins to rise2. Growth stage 4. public awareness increases 5. competition begins to increase with a few new players in establishing market 6. increased competition leads to price decreases 1. costs are lowered as a result of production volumes increasing and experience curve effects 2. sales volume peaks and market saturation is reached 3. increase in competitors entering the market3. Maturity stage 4. prices tend to drop due to the proliferation of competing products 5. brand differentiation and feature diversification is emphasized to maintain or increase market share 6. Industrial profits go down4. Saturation and 1. costs become counter-optimaldecline stage 2. sales volume decline
3. prices, profitability diminish 4. profit becomes more a challenge of production/distribution efficiency than increased sales2.Segmenting ,Targeting and positioning AnalysisA marketing strategy is based on expected customer behavior in a certainmarket. In order to know the customer and its expected buying processof segmenting and positioning is needed. These processes are chronologicalsteps which are dependent on each other. The process of marketsegmentation and of positioning are described below -SegmentingSegmenting is the process of dividing the market into segments based oncustomer characteristics and needs.The main activity segmenting consists of four sub activities. These are:1. determining who the actual and potential customers are2. identifying segments3. analyzing the intensity of competitors in the market4. selecting the attractive customer segments.The first, second and fourth steps are described as market segmentation. Thethird step of analyzing the intensity of the competitors is added to the process ofsegmenting in this process description. When different segments are identified, itis not necessary that these segments are attractive to target. A company isalmost never alone in a market -- competitors have a great influence on the
attractiveness of entering a certain market. When there is a high intensity ofcompetitors, it is hard to obtain a profitable market share and a company maydecide not to enter a certain market. The third step of segmenting is the first partof the topic of competitor analysis.The need for segmenting a market is based on the fact that no market ishomogeneous. For one product the market can be divided in different customergroups. The variables used for this segmenting in these groups are usuallygeographical, psychographical, behavioral and demographic variables.TargetingAfter the most attractive segments are selected, a company should not directlystart targeting all these segments -- other important factors come into play indefining a target market. Four sub activities form the basis for deciding on whichsegments will actually be targeted.The four sub activities within targeting are:1. defining the abilities of the company and resources needed to enter a market2. analyzing competitors on their resources and skills3. considering the company’s abilities compared to the competitors abilities4. deciding on the actual target markets.The first three sub activities are described as the topic competitor analysis. Thelast sub activity of deciding on the actual target market is an analysis of thecompanys abilities to those of its competitors. The results of this analysis leadsto a list of segments which are most attractive to target and have a good chanceof leading to a profitable market share.PositioningWhen the list of target markets is made, a company might want to start ondeciding on a good marketing mix directly. But an important step before
developing the marketing mix is deciding on how to create an identity or image ofthe product in the mind of the customer. Every segment is different from theothers, so different customers with different ideas of what they expect from theproduct. In the process of positioning the company:1. identifies the differential advantages in each segment2. decides on a different positioning concept for each of these segments. Thisprocess is described at the topic positioning, here different concepts ofpositioning are given.The process-data model shows the concepts resulting from the different activitiesbefore and within positioning. The model shows how the predefined concepts arethe basis for the positioning statement. The analyses done of the market,competitors and abilities of the company are necessary to create a goodpositioning statement.3.Swot Analysis SWOTanalysis (alternately SLOT analysis) is a strategic planning method used toevaluate theStrengths, Weaknesses/Limitations, Opportunities, and Threatsinvolved in a project or in abusiness venture. It involves specifying the objectiveof the business venture or project and identifying the internal and external factorsthat are favorable and unfavorable to achieve that objective. The technique iscredited to Albert Humphrey, who led a convention at Stanford University in the1960s and 1970s using data from Fortune 500 companies.
Setting the objective should be done after the SWOT analysis has beenperformed. This would allow achievable goals or objectives to be set for theorganization. Strengths: characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e.g. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. INTEGRATION PAPER-2INTRODUCTION-.Cox n king holidays had came into existence in the year 1758 with a single resortin munnar. Right now company is having 30 owned properties in India and 5 inabroad. So we can figure out that in this 16 years of journey, company havereally achieved great success and this was possible only because of company’scorrect marketing strategies.
So, I will now highlight the various promotional tools for which today Cox n kingholidays is a market leader in time share industry for last consecutive 10 years.Promotional Tools-1. Advertising- Cox n king holidays basically advertise its products with the help of digital media. Digital Marketing Head of Cox n king holidays– Arun Nair talk about their product and also social media in India in general. We’ve been in existence on the Internet since early 2006. But digital as an initiative didn’t have any roots until we started lead generation campaigns, with no real thrust on social media. We had our presence on Facebook but Twitter came at a much later stage. What we noticed was that our customers were beginning to get more involved and active on social media.We realized that Internet as a medium was the future. A lot of our prospects existhere. It is important, that we don’t just look at the numbers that are not there, butsee the numbers that are there. They are also the most vocal of your customersand if you don’t have a presence online, then in a way you’re saying you don’tcare about these people. Focus primarily is to build engagement as far as socialmedia is concerned and to build prospects. We’ve seen prospects that haveemerged through Internet are far more interested and evolved. The chances forconversion are greater and also chances of a sale are higher.Anand Mahindra was very impressed with the initiative that was taken on socialmedia in respect of bringing down the number of complaints. We were able toengage and close issues quickly on the Internet. We got a lot of recognitionbecause of that within the group as well.In terms of numbers, we crossed the threshold levels on Facebook and Twitter.Even the brand campaigns for these properties had their extensions on socialmedia. So Facebook of Jiyo Life (brand campaign) gathered lakh fans in a smalltime and that to me is a commendable number. We also had a lot of contests andother engagements happening. Today we are sitting on 2lakh fans for thatinitiative alone.2. Personal Selling- For such kind of luxurious product, company consider personal selling asthe most effective form of promotion because it allows the approach to betailored as per the needs of individual customer.There are overall 9 plans in membership of Cox n king holidaysand each plandepend on seasons the customer wish to have their holiday and their family size
so which will depict their apartment. So this particular product is complex innature and that’s the reason why company gives so much importance onpersonal selling because sales executives go to client’s convenient place andgive complete details regarding the product. Due to face to face interaction, salesexecutive have a chance to understand its customers and then pitch its salesaccordingly.Personal Selling help sales executives to build long term profitable relationship.As a result they understand their needs and feeding back this knowledge back tobusiness in order to improve products, customer service standards, competitorknowledge etc.3. Sales Promotion- • Events and venue sales- Cox n king holidays also depend on venue sales in order to enhance the short term sales. For e.g- In Delhi, they organize events in some good localities like Ansal Plaza, Gurgoan, Asia Pacific, Dwarka, Nehru Place, Vasant Kunj, Malviya Nagar, Noida sector- 22 and many more. Here holiday consultant invites families and try to sell from their venues. Since it is a family product so if family comes to these venues then they have certain interest in these products and holiday consultant task is to convert this into sale. • Trade Fairs- Cox n king holiday stook active participation in various renowned trade fairs. For e.g- In Delhi, trade fairs like Suraj Kund Mela, Auto Expo 2012 Etc Company have a canopy in these trade fairs. Here the stall is more or less 1000 sq feet and there is sufficient space for 4 families. Here the main intention is to get quality based lead. Crowds those come to these melas, our holiday promoters approach them and collect required information. So that we can later on call them and ask them for appointment. We also invite expected prospects in our canopy and give presentation regarding the products. • Discounts and coupons- In order to attract more and more customers company often provide coupons and discounts. Like if a customer make full payment then in that case company give flat 5% discount. They also
started customer referral program where if a customer give a reference and if it is converted into sale then that customer will get Rs. 5000 for each sale. That’s the reason that 20% of sale took place through reference. • Gifts- Company give lot of gifts those who buy membership like LCD of Sony Bravia or Panasonic, 3N/4D CMH, 1 week DAE, upto Rs. 8000 Resort credit voucher, Shopping voucher of Shopper Stop and many more. So such attracting gifts also help sales executives to close the deal.Models used by Cox n king holidaysto determinepromotional efforts- STP Analysis- Various segments of Cox n king holidaysare as follows- • Demographic segmentation- For the membership of Club Mahindra Holidays, age group of customer should be within the age group of 28 to 58 years. Since it is a family product therefore the customer should me married. Customer should at least owned a car at least Maruti Alto. Customer’s annual income should be more than 5 lakhs per annum.
So these are some of the demographic factors which company needs to consider while segmenting. • Psychographic segmentation- Here lifestyle of customers becomes very important since it is a luxuriousproduct therefore each and every customer will not able to afford this product.Even customers can afford but they do not purchase membership because theydo not possess such mindset. So it becomes very important to understand themindset and then segment accordingly. • Behavioral segmentation- Occasions- There are 4 spike months where sale took place maximum likeMarch, June, September and December. So in these occasions more and moreefforts are given in order to increase the sale. Benefits- They also segment their customers on the basis of benefitsought.After analyzing all of these segments they target few segments and then finallypositioned their products in the minds of customers. Today Cox n kingholidayshave successfully positioned its products as “Jiyo Life”.SWOT Analysis-Strength- • Financial Background- Company is having a good financial position and that’s the reason they are coming up with 3 to 4 resorts every year in India as well as international market.Weakness- • Promotion-
Cox n king holidays highly depend on promotions because it is such kindof product that continuous promotions are required and as a result its selling anddistribution expenses are increasing year after year. • Pricing- Since it is a luxurious product the pricing of product is very high and in every 3 quarter it is increasing. So it is beyond the reach of many customers. Opportunities- • Middle class people- Now since the purchasing power of customers are increasing thereforethere is a good opportunities if company start targeting middle class people. • International Market- In India Cox n king holidayshave 30 resorts and it more or less cover all the leading destinations but in abroad we have only 5 properties. So now company is taking interest in international market. This year itself company is coming with 3 new properties in Dubai, Malaysia and Sri Lanka. So it is expected that in coming years company will come up with more and more international properties. Threats- • External Factors- There are several external factors which has become a serious threat for the company. This membership provides only stay free holidays for the period of 25 years. Rest of the things like fooding, travel is chargeable whereas the holiday package providers are providing all these above at lower price. • Competitors- Some of the major competitors in the market are as follows-
Country Club India Limited Thomas Cook Private Limited Sterling holidays Kuoni Travel GroupFinancial Aspects of Club MahindraHolidays-CATEGORY Mar’ 11 Mar’ 10 Mar’ 09 Mar’ 08 Mar’ 07NET SALES 487.13 468.75 393.06 352.73 232.31NET PROFIT 117.84 102.76 83.41 80.52 41.76SELLING,DISTRIBUTION &PROMOTIONALEXPENSES 210.05 185.52 179.35 150.31 101.20
Sales and Distribution, Net Profit and Net Sales of cox n kings 600 500 400 2011 300 2010 200 2009 100 2008 2007 0From the above chart, it is clear that Cox n king holidaysare continuouslyincreasing their promotional expenditure in last 5 financial years. Though theirexpenditures are keep on increasing but this had shown a positive result in termsof net sales and net profit. The net sales are also keep on increasing due to theireffective promotion mix and finally as a result they were getting positive growth innet profit in last consecutive 5 years.So if we tactfully decide the effectivepromotional tools then it will definitely provide us positive results.