- MMT can sustain its business model targeting inbound travelers in the medium term due to its focus on the NRI market and room for growth within that segment. However, to succeed long-term it will need to diversify given changes in consumer behavior, competition, and the travel industry. - The document recommends MMT first target inbound corporate clients and develop loyalty programs within the inbound segment before moving to the outbound corporate segment to achieve volumes more quickly. It also suggests advertising revenues could be pursued if done strategically without diluting the MMT brand. - For MMT's model to work in other countries like China, Singapore, and Philippines, it would need to adapt to populations with ethnic ties to those countries while

1. makemytrip.com
By: Group No. 4
Pooja Gupta (P122033)
Rohit Singh (P122038)
Saurabh Singh (P122041)
Varun Kumar Anand (P122049)

2. Can MMT sustain its business model by
targeting just inbound travellers, or does
it needs to look at other markets and
segments? If yes, which segments would
you recommend? If no, how can
they grow within the inbound segment

3. MMT : Business Model
Yes, they can sustain this business model for medium term
• Only travel portal focusing on NRI market
• Currently they have 2.55% market share and the scope to expand
within this particular segment also exists
• Currently only 35% of people buy travel services on internet and
this projected to grow to 55% in next two years

4. MMT : Business Model
For long term success, MMT will have to change its strategy
• Consumer behaviour
• The study by PhoCusWright in November 2003 found that flight and rental cars
are the travel services most likely to be purchased online, while offline channels
still dominate the travel activities category
• Competition
• The aggressive advertising campaigns from the competitor like Expedia can take
the MMT market share
• Changes in Industry
• The airlines might provide substantial discounts on their websites and take
MMT out of business if they don’t diversify

5. MMT : Business Model
• Emerging Markets
• The high growth in India outbound travel might make this as big if not the
biggest segment in next few years
• MMT cannot afford to leave this segment untargeted

6. MMT : Recommendations
Our recommendations are as follows:
• First target the inbound corporate clients
• Less advertising cost to capture this segment
• Competition is not so intense
• Develop customer loyalty within the inbound segment by
• Launch Loyalty Programs
• Give points for every travel in addition to air miles
• Give large no. of points for referrals
• Give double points for value add services

7. MMT : Recommendations
• Develop customer loyalty within the inbound segment by
• Develop a CRM solution
• Analyze the profit derived from purchases
• Profits from other customers that they referred to us
• Change in the willingness to pay
• Use of the extra services provided by us and how much they value those
services
• Give special trips and rewards to profitable loyal customers
• Try to take the loyal customers from low price and low service
segment to higher service and premium price segment

8. MMT : Recommendations
Now move to outbound corporate segment
• This will involve less advertising dollars as compared to the retail segment
• Once they get used to the service they are less likely to switch
• They have much higher Temporal Costs as compared to Retail travellers
• Much higher chances of repeat business
• Corporate clients will help us achieve volumes more quickly

9. Ad revenues have never been core to
MMT’s business plan. However, MMT’s
role in promoting some leading NRI
focused brands suggests that this might
be another avenue that Kalra could
investigate. Does MMT need to look at
advertising as a revenue generator?

10. MMT : Ad Revenue
• Internet channel has grown the fastest since 2001,taking share away
from most traditional channels
• Internet advertising grew at an annual clip of 18% from 2001-2006 and only
cable TV (10%) was close to a double digit growth rate
• Total US internet advertising was $21.2 bn in 2007, a 26% increase over 2006
•Consumer related advertising made up 55% of revenue
• Fostering strategic Brand alliance associated with the Indian consumers is a right
strategy to go ahead with

11. MMT : Ad Revenue
Ad revenue will be good proposal to implement with certain caveats
• It should not dilute the MMT brand name
• If we promote some product or service and the quality or experience that the
user gets from that service is not right, will hurt MMT’s image
• MMT should not overdo it - where it hurt customers experience

12. MMT : Ad Revenue
Ad revenue will be good proposal to implement with certain caveats
• MMT’s core strength is in its low operational cost and lean structure
• Currently, there is immense scope to expand business in existing segment (NRI’s
to India and NRI’s to destinations other then India) and new segments (India
outbound)
• If MMT finds that it does not have enough resources i.e. manpower to handle
advertisement business then it needs to stick to its core business

13. Can MMT’s business model work in other count
ries, in particular China, Singapore and
Philippines? Are there any differences in
consumers and segments in these countries
that would render the model inadequate?
What might need to be changed in other
countries? Could MMT expand in a modular
manner by replicating their business with
overseas residents of other countries?

14. MMT : Expansion
• MMT’s key success factor is that it has low cost as the back office/call
centre etc. is in India
• The low cost model can be adapted to China, Singapore and
Philippines because there are many citizens in both countries that
are from Chinese ethnic

15. MMT : Expansion
Non –Resident Chinese Market:
• Largest number of expatriates in the world
• 3.6 million in USA
• According to a 2003 survey
• 35% traveller bought tickets and packages online
• Market expected to grow at 55% in next 2 yrs
Good reason to believe that NRC will follow similar purchasing trends

16. MMT : Expansion
Before expanding in a modular manner to any other country, MMT will
have to evaluate some parameters:
• The penetration of internet or the number of internet users in
those countries (Infrastructure)
• The availability of payment gateways and government regulations
on e-commerce in those countries (Infrastructure)
• The extent to which customers go on-line to buy tickets.
(Psychological –Consumer Behaviour)

17. MMT : Expansion
Before expanding in a modular manner to any other country, MMT will
have to evaluate some parameters:
• Cost of creating a brand positioning in these countries
• The number of available competitors in those countries
• The loyalty of customers to the existing competitors
• The economical and political condition of the country
• Understand the user concerns

18. Thank You !!!