7P’s OF MARKETING &SWOT ANALYSIS OF THE T & H SECTOR… Priyojit Das Sujeet Sinha Pooja Rani Shivali Oswal
INTRODUCTION.. According to the Travel & Tourism Competitiveness Report 2011 brought out by World Economic Forum, India is ranked 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2008. In terms of travel, India stands 9th in the index of relative cost of access(ticket taxes and airport charges) to international air transport services, having almost the lowest costs in the world. The contribution of travel and tourism to gross domestic product (GDP)is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$187.3 billion by 2019. The ministry is planning to develop three niche products – wellness tourism, caravan tourism and helipad tourism this year. According to the Tourism Ministry of India, foreign tourist arrivals(FTAs) during June 2011 were 341,000 as compared to FTAs of 340,000 during the month of June 2010. There has been an improvement in the growth rate of FTAs in June 2011 (+0.2 per cent) as compared to May2011 (-1.9 per cent), in fact, a positive growth has been witnessed for the first time in 2011.
About Irctc…The Indian Railway Catering and Tourism CorporationLimited (IRCTC) is a public sector company set up and fullyowned by the Ministry of Railways. The IRCTC has beenincorporated under the Companies Act 1956, has itsRegistered Office at 9th Floor, Bank of Baroda Building,Sansad Marg, New Delhi 110001. This company has beenformed to function as an extended arm of the IndianRailways to upgrade, professionalize and manage thecatering and hospitality services at stations, on trains andother locations and to promote domestic and internationaltourism through development of budget hotels, specialtour packages, information, commercial publicity andglobal reservation systems. the objective of upgrading andmanaging rail catering and hospitality.
About Make My Trip…MakeMyTrip.com, India’s leading online travel companywas founded in the year 2000 by Deep Kalra. Created toempower the Indian traveller with instant booking andcomprehensive choices, the company began its journeyin the US-India travel market. It aimed to offer a rangeof best-value products and services along with cutting-edge technology and dedicated round-the-clockcustomer support.
About Yatra.…Yatra Online Pvt. Ltd. is a smart travel company providinginformation, pricing, availability and booking facility for airtravel, hotels, buses and car rentals across 5000 large citiesands mall rural areas around the globe. As an online travelcompany, Yatra.com acts as a complete tour planner fortravelers and is a one-stop shop for every travel need.Established in August 2006, Yatra.com has grown fast tobecome India’s leading travel company, serving over 1million customers With an employee base of more than700. In April 2012, it was the second largest online travelwebsite, with 30 per cent share of the 37,000 crore(US$6.99 billion) market for all online travel-relatedtransactions., it also launched a "holiday-cum-shoppingcard" with State Bank of India (SBI), Indias largest bank .
About GoIBIBO.…Goibibo.com is one of the leading online travel sites inIndia that enables travelers to buy air and bus tickets,hotels and holidays. It is a part of the MIH India Groupand was launched in September 2009. Within a shortspan of time, GoIBIBO has trounced hundreds of travelsites. GoIBIBO has a very strong technology enabling itto serve its customers fastest in the market. Speed andservice are the core value differentiators of GoIBIBO.The platform enables a customer to search and buy inthe fastest manner. GoIBIBO also has the quickestprocesses for rescheduling, cancellation and refunds,thereby making it an unmatched consumer experience.
IN TERMS Of 7 P’s Of SERVICE MARKETING 7 P’S IRCTC MAKE MY TRIP YATRA IBIBOPEOPLE At present IRCTC have 4453 MakeMyTrip.com has over Over 700 employees. 24x7 call At Present IBIBO have 201-500 employees. The employees 450 employees on board center and 15 retail Holiday employees. (Privately Held) comprise of IRCTC Direct and offers 24x7 customer Lounges spread across the country Employees, Deemed service. Deputation absorbers, Deemed Deputations, deputations and fixed term employees.PLACE Five Zonal Offices are MMT has created a Headquartered in Gurgaon, Headquartered in Gurgaon,& other working at Delhi, Kolkata, network of offices in New Haryana. Over 10 offices in 10 offices in Bangalore and Mumbai Mumbai, Chennai and Delhi, Mumbai, New York metro cities. Secunderabad. and Sydney. Appointed franchise in all major cities of US, UK, Australia, UAE and IndiaPRICE Low cost as per Cost are higher than Costlier than compared to other Pricing is most aggressive in the Government in case of compared to IRCTC. competitors. market railway and others are cheaper than compared to the other competitors.
IN TERMS Of 7 P’s Of SERVICE MARKETING 7 P’S IRCTC MAKE MY TRIP YATRA IBIBOPROMOTION Advertisement, Subh Yatra Card, Corporate agents , Advisors. Corporate agents , Advisors. offer coupon codes or SBI Railway Card. promotional codes, Standard Chartered bank Card, Airtel MoneyPROCESS Online processing, counter , Online processing, , Home Online processing, Online B2C transaction Home Delivery facility available Delivery facility available Yatra.com has a toll-free Processing customer care numberPRODUCT Tour packages, Flight, Hotels, Tour packages, Flight, Hotels, Airline, Railway and Bus Flights, Holidays packages, Tourist Train, Cab and Loyalty Tourist Train, Cab and Loyalty tickets and Reserve hotel Hotels, Bus Ticket Booking Program. Program except railway & bus. rooms and Car rentalsPHYSICAL Well developed web site with Two blinking bright colored links Yatra’s homepage seems Well Developed WebsitesEVIDENCE whole lots of information, “We are hiring” & “Corporate more dominate by with lots of information Counters. level” ( seems they’ve text/content. Perhaps used Java Script.) Salman khan is Yatra’s brand ambassador. Yatra.com’s navigation menu are better from the usability perspective.
SWOT ANALYSIS OF IRCTC WEAKNESSES STRENGTHS Lack of motivation in employee Subsidiary of Ministry of Railways. Poor Promotional activities & public relation Full back up by the Govt Limitations in decision making process Excellent Faith & Goodwill Delayed decision making. Largest e-commerce website “Not my work’’ attitude of the employees Monopoly in Rail tour packages& Rail Ticketing Non existence of full fledge Marketing team. Concession on booking of charters
SWOT ANALYSIS OF IRCTC THREATS OPPURTUNITY Leading web portals like Make My Trip, Cox & Kings, Clear trip, Thomas cook, Yatra etc. Terrorists Attacks& Naxalites Attacks Buoyancy in the Tourism Sector Withdrawal of parental support from the Ministry Increase in Individual disposable income. of Railways, Govt. of India Air Packages &Road Transport Packages. Low fare Airlines Booming Hotels &Resorts Industry Private Small Tour operators Bids for Contract Increasing Inflation rate Strategic Tie-ups for better &improved performance.
SWOT ANALYSIS OF MAKE MY TRIP STRENGTHS IIM A insurance WEAKNESSES Work experience Ill-informed Easy capital High airfares Family support Less number of travel options Personal savings Lack of trust among Indian consumers Great timing Adaptive Belief
SWOT ANALYSIS OF MAKE MY TRIP OPPORTUNITIES THREATS The Dotcom bubble burst The NRI market Bigger players Sale of other services/products VC moving out Ride along with cheap airlines
SWOT ANALYSIS OF Yatra STRENGTHS Partnerships with reputed and renowned WEAKNESSES companies Presence in the international business scenario Secure and trusted channel for facilitating Unable to attract customers who are not internet payments savvy Provides maximum options in budget hotels, Reluctance in customers to avail bookings targeting middle class through online payments Provides reservation facility for more than 3,800 hotels across 300 cities in India and over 90,000 hotels around the world Salman Khan as Brand Endorser/ Ambassador
SWOT ANALYSIS OF Yatra OPPURTUNITIES THREATS Customers currently using traditional methods of bookings Possible lack of co-ordination with tourism Offer better travel packages in line with customer entities expectation Present competitors having substantial market Untapped sections of international tourism share market Newly emerging online booking portals with better offerings
SWOT ANALYSIS OF GoIBIBO STRENGTHS offers a variety of applications WEAKNESSES travel booking simpler add fun in booking experience create travel community authentication error received from payment gateway best deals to the community members. Lack Of customer support Gifts a family spiritual holidays very poor service Poor Transaction system
SWOT ANALYSIS OF GoIBIBO OPPURTUNITIES THREATS top online travel websites largest revenue sources with the user response Change in business travel plans high usage of social media Terrorists Attacks & Naxalites Attacks Whole business model is based on low cost of user acquisition Travellers health issues Travel Technology platforms, integration and Personal or family emergency selling platform Change in flight timings’ by the airlines. Increasing Inflation rate
WEAK PLAYER As per above data & information that we collected through internet as well as from customer complaints blogs, make my trip is the weak player or least among the all. We compared it on the basis of their SWOT analysis and 7 P’s of service marketing. As we know that trust among the customer is very important in every kind of activity in the business but the make my trip has low% of trust among the consumers due to lack of customer support & poor services. Also they charge high airfares from the customers & less number of travel options as compared to the YATRA, GoIBIBO & IRCTC.
Strategies to develop IRCTC into astrong player Marginal cost pricing strategies are difficult to implement, but generally yield better results than full cost pricing. They are characterized by a market-facing approach that tries to estimate and influence demand for a service product. To generate awareness, about a product or a service offered to a customer through Repetition of advertisements ,Strategic placement of advertisements (including time) & Quality of advertisements. Also Making a good public relation with customer by Maintaining a rapport with the public, Generating repeat buyers etc. Decision-making is a key skill in the workplace, Whether youre deciding which person to hire, which supplier to use, or which strategy to pursue, the ability to make a good decision with available information is vital. Motivation focus on an employees drive to satisfy a variety of needs through their work. These needs range from basic physiological needs for survival to higher psych emotional needs like belonging and self-actualization.
Strategies to develop Yatra into astrong player Improving the coordination with tourism entities by comprehensive plan to expand and align skills training programs with economic opportunities to the employees. Today’s Internet-savvy buyers are hungry for content. And not just any content … valuable, relevant content that offers solutions to their problems. you need to communicate differently by creating strong brand relationships by providing good, authoritative, even leadership-type content. The company may improve it substantial market share, needed to represent its unique value proposition in a new and more engaging way that also reflected its local presence.
Strategies to develop MAKE MYTRIP into a strong player Setting a price for business products without proper direction can be a problematic affair. The best way to approach the problem of setting prices is to examine the overall market for the product or services or class of product or services you are selling. Necessary to know your competitive advantage or unique selling proposition. Being consistent is more important than having the “best” product. This includes the look of your collateral materials, the message you deliver, the level of customer service, & the quality of the service product.
CONCLUSIONFrom the analysis conducted we have reached to a conclusionthat Make my Trip is the weak player among all the threecompetitors – IRCTC, Make My Trip, Yatra in terms of theirservices, strategies, market share, revenue & profits over aperiod of time.