Incredible India 2

Revised Marketing Strategy

Presentation
 Tourism Industry Statistics
• Tourism is one of the world’s fastest
growing industries.
• Tourism industry is estimated to earn
around US$3.5tr worldwide
• Consumer spends around 5-10% of
total spending in a year
 Tourism Industry Statistics
(India)
• India’s share of total market is pittance 0.51%
• However, average duration of stay is one of the
highest
– 27 days for non-package tourist
– 14 days for package tourist
• Third largest export industry after gems and
jeweller and garments
• Foreign exchange earnings are around US$3.2bn
• It is the highest foreign exchange earner if we
consider the fact that the net value addition in
Gems and Jewellery is 30% whereas in Tourism it
is more than 90%
Tourists Arrivals and Receipts
Worldwide
 S.L.E.P.T. Analysis
• Social: Tourism was looked upon as a destruction of the social fabric of a
place. But some places like Kerala and Rajasthan have kept balance
between their own culture and demand of international tourists and thus
have profited handsomely
• Legal:
– Tax
– Foreign Investment
– Eco-tourism policies and guidelines
• Economic:
– High spending power of International Tourists
– Increase in demand for better hotels
– Air Travel increase
• Political:
– Tourism industry is based on Government support and cannot sustain without
it.
– The main attraction: the vast heritage of India is entirely under Govt. Through
ASI
– Policy change has a huge impact on the industry
– Political turmoil in the country also leads to the decrease in the tourists
• Technology:
– It plays a major part in the promotion of a place
– Better communication by far reaching areas
– Better transportation leads to people visiting many places
 SWOT Analysis
• Strengths:
– Geographical Diversity – Desert, Mountains, Forests and Beaches
– Cultural Diversity
– Wealth of archaeological sites and historic monuments
– Manpower costs are low
– World class hotels present
• Weaknesses:
– Lack of adequate infrastructure
– Xenophobic attitude among certain sections
– No proper marketing tools used
• Opportunities:
– Proactive role of govt. in framing proper policies
– Allowing entry of more multinational companies
– Growth of Domestic Tourism
• Threats:
– Economic Conditions of the other countries
– Political turbulence in Kashmir, Gujarat
– Aggressive strategies approached by other countries for tourism
 Segmentation
• The most important base for
segmentation is the Lifestyle as
travelling decisions can be greatly
influenced by the same.
• Other factors such as Level of
Income, Availability of leisure time,
etc. are secondary.
 Segmentation (Contd.)
BASE OF SEGMENTATION CATEGORIES
Holiday Mass market
Popular market
Individual market
Demand Primary
Secondary
Opportunity
Geography International
On the basis of regions, cities, etc.
Psychography Lifestyle
Personality motive
Knowledge
Demography Age
Sex
Religion
Socio-economic Rich, Poor
Rural, Urban
Literate, Illiterate
Purpose Business Travel
Cultural Tourism
Common Interest Convention
Age Teens
Youth
Seniors
 Targeting
• Mass Market:
– Consists of Vacationists that travel in large groups
– They prefer all-inclusive tours
– Generally Conservative
• Popular Market:
– Smaller Groups going for inclusive or semi-inclusive
tours
– Groups include pensioners, retired people
• Individual Market:
– Consists of Chairmen, Sr. Executives, people on
business visits.
• As lifestyle changes, preferences might change
Players in the Industry
 Total Product Concept
Theme Tours

Customized
Special interest Tours
Holiday
Tour Guides

Hotels
Accessibility

Destinati Theme Hotels

on/Tour
Package Safety
Time Sharing Specialt
y Food
Basic
Transporta
tion Multilingual Guides
Souveniers Professional Experts

Multi-Cuisine Medical
Insurance
Marketing Process
 Marketing of Tourism
• Product Mix
– Attractions
– Accomodation
– Restaurants
– Transportation
– Recreation
– Shopping
• Price Mix
– Set prices in line with the quality of service
offered
– Pricing decisions are influenced by external
and internal factors
• Promotion Mix
– Advertising
– Publicity
– Sales Promotion
– WoM Promotion
• Place Mix
– It is concentrated on two things –
Availability and Accessibility
– Selling through travel agents or direct
selling
– Transportation plays key role