PROJECT ON MARKETTING PLAN OF

SERVICE

Submitted to: Submitted By: (Group No. 8)

Ms. Monica Mor Abhishek HasizaMs. Anurupa Singh Ankush Bhatia

Ankush Soni

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Ayush BhallaDivyabhan

SinghMohit

Khandelwal

ACKNOWLEDGEMENTWith great pleasure and profound privilege, We express our gratitude

and indebtedness along with sincere thanks to Ms Monica Mor & Ms

Anurupa Singh for giving us the opportunity to work on this project.

We would also like to pay gratitude to our Project guide, Mr. I.L. Bansal

(Director) Out of Africa tours & travels (SOTC), who has been a sincere

advisor and inspiring force behind this project.

This Project would not have been a success without the help of our

group members.

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Table of ContentI. Executive Summary

II. Introduction to tourism Industry

III. Tourism industry in India

Contribution to Economy

Foreign Tourist Arrivals

Government Initiative

IV. SOTC –An Overview

SOTC Brands

SOTC World Famous Tours

SOTC Bhraman Mandal

SOTC Gurjar Vishwardarshan

SOTC Do-it-Yourself Holidays

SOTC Holidays of India

V. Vision, Mision and Objectives of SOTC

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Keys to Success for SOTC

Strategic Areas of Focus

VI. Marketing Mix(7P’s)

Product

Place

Promotion

People

Process

Physical Evidence

VII. Market Segmentation

VIII. 4I’s of Services

Inflexibilty

Inventory/ Perishability

Inconsistency

Intangibilty

IX. PEST Analysis

X. SWOT Analysis

XI. Porter’s Five Forces Model For SOTC

XII. Marketing Plan for SOTC(Religious tour to Vaishno Devi)

XIII. Project Outcomes & Recommendation

XIV. References

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Executive SummaryThis project overall is a very important learning for us, it helps us to understand various aspects of tourism industry and also mentioned India`s share in tourism with respect to the world and it`s contribution to the Indian economy. Under Tourism industry we have taken SOTC World tours for our project.

Firstly, we have explained an introduction to SOTC, it`s various holiday packages, then SOTC brands.

Secondly, we have mentioned vision statement, mission and objectives of SOTC, keys to success in tourism, strategic areas of focus.

Thirdly, we have explained 7P`s of marketing in SOTC with respect to tourism industry, market segmentation, 4 I`s of services in tourism industry, PEST analysis with regard to tourism industry, SWOT analysis for SOTC, Porter`s five forces model for SOTC.

Fourthly, we have shown a marketing plan for SOTC`s Religious tours to Vaishno Devi.

Lastly, we have given our project outcomes and recommendations.

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Introduction to Tourism Industry:The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized.

The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda.

Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

Tourism is one of the world's fastest growing industries at present and holds the status of the world's no. 1 industry.

Spending on tourism amounts to 5%-10% of total consumer, spending in a year worldwide.

The tourism industry as a whole is presently estimated to earn over US$ 3.5 trillion worldwide.

India's share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India.

India's share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India.

The Tourism industry's foreign exchange earnings in India are around $3.2 billion. Tourism is the highest foreign exchange earner if we consider the fact that net value addition in Gems and jewellery is less than 30 % whereas, in tourism it is more than 90 %.

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SPECIAL FORMS OF TOURISMFor the past few decades many forms of tourism are becoming more popular, particularly:

ADVENTURE TOURISMThis type of tourism involves travel in rugged regions, or adventurous sports such as mountaineering and hiking (tramping).

CULTURAL TOURISMIt includes urban tourism, visiting historical or interesting cities, such as Delhi, Amritsar, Mumbai, Banglore, Chennai, Ahmedabad, etc. and experiencing their cultural heritages. This type of tourism may also include specialized cultural experiences, such as art museum tourism where the tourist visits many art museums during the tour, or opera tourism where the tourist sees many operas or concerts during the tour.

EDUCATIONAL TOURISMIt may involve travelling to an education institution, a wooded retreat or some other destination in order to take personal-interest classes, such as cooking classes with a famous chef or crafts classes.

GARDEN TOURISMIt means visiting botanical gardens, famous places in the history of gardening, such as Versailles and the Taj Mahal.

HERITAGE TOURISMIt is visiting historical (Rome, Athens, Cracow) or industrial sites, such as old canals, railways, battlegrounds, etc.

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HEALTH TOURISMIt means usually to escape from cities or relieve stress, perhaps for some

'fun in the sun', etc. often to "health spas".

MEDICAL TOURISM It is used for advanced care that is not available in one's own country, in the case that there are long waiting lists in one's own country for use of free or cheap health care organizations for what is illegal in one's own country, e.g. abortion, euthanasia; for instance, euthanasia for non-citizens is provided by Dignitas in Switzerland.

HOBBY TOURISMTourism alone or with groups to participate in hobby interests, to meet others with similar interests, or to experience something pertinent to the hobby. Examples might be garden tours, square dance cruises, etc.

POP-CULTURE TOURISMThis tourism refers to tourism by those that visit a particular location after reading about it or seeing it in a film.

PERPETUAL TOURISMIt is mainly for wealthy individuals who are always on vacations; some of them, for tax purposes or to avoid being resident in any country.

PILGRIMAGE TOURISMPilgrimage tourism refers to ancient holy places (Rome and Santiago de Compostela for Catholics, Temples and stupas of Nepal for the Hindus and Buddhist, Mount Athos or Painted churches of northern Moldavia for the Orthodox), religious sites such as mosques, shrines, etc.

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SPORT TOURISMSkiing, golf and scuba diving are popular ways to spend a vacation. Also in this category is vacationing at the winter home of the tourist's favorite baseball team, and seeing them play everyday.

ECO TOURISMIt means sustainable tourism which has minimal impact on the environment, such as Safaris (Kenya), Rainforests (Belize) and Hiking (Lapland), or national parks.

GAMBLING TOURISM This tourism refers to tourism to Atlantic City, Las Vegas, Macau or Monte Carlo for the purpose of gambling at the casinos there.

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Tourism Industry In INDIA :As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.

India has been ranked the "best country brand for value-for-money" in the Country Brand Index (CBI) survey conducted by Future Brand, a leading global brand consultancy. India also claimed the second place in CBI's "best country brand for history", as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of "rising stars" or the countries that are likely to become major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam.

Contribution to the Economy :According to the Travel & Tourism Competitiveness Report 2009 brought out by the World Economic Forum, the contribution of travel and tourism to gross domestic product (GDP) is expected to be at US$ 187.3 billion by 2019.

The report also states that real GDP growth for travel and tourism economy is expected to achieve an average of 7.7 per cent per annum over the next 10 years. Export earnings from international visitors and

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tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2019. The travel and tourism sector which accounted for 6.4 per cent of total employment in 2009 is expected to generate 40,037,000 jobs i.e. 7.2 per cent of total employment by 2019.

Foreign Tourist ArrivalsEstimates of foreign tourist arrivals (FTAs) and foreign exchange earnings (FEE) are important indicators of the tourism sector.

According to the latest data released by the Ministry of Tourism, FTAs during January 2010 were 491,000 as compared to 422,000 in January 2009, an increase of 16.4 per cent. FEE in US$ terms during January 2010 were US$ 1.21 billion as compared to US$ 941 million in January 2009, a growth of 29.1 per cent.

Moreover, to give a further boost to the tourist arrivals, the Indian Association of Tour Operators (IATO) has drawn up plans to hold roadshows in the US, UK, European Union nations and Australia in 2010 to hard sell India as a tourist hub.

Government InitiativeThe campaign ‘Visit India Year 2009’ was launched at the International Tourism Exchange in Berlin, aimed to project India as an attractive destination for holidaymakers. The government joined hands with leading airlines, hoteliers, holiday resorts and tour operators, and offered them a wide range of incentives and bonuses during the period between April and December, 2009.

Euromonitor International's Travel And Tourism in India report states that the Government of India increased spend on advertising campaigns (including for the campaigns ‘Incredible India’ and ‘Atithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism in India.

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The ministry promoted India as a safe tourist destination and undertook various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations.

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SOTC: An Overview:-Established in 1949 with just five employees at an office in Cawasji Hormusji Street, Mumbai, it has grown to become one of India’s largest travel companies. By the year 1968, the Company had moved to a much bigger office at Mint Road and was also counted as one of the top ten travel agents in Mumbai, with a turnover touching Rs 25 million.

A major turning point came in 1976 when SOTC handled its first group tour to the US during the bicentennial celebrations. Within three years, SOTC had taken about 500 passengers to Europe, the US, Singapore and Japan. In 1981, came another breakthrough when SOTC Package Tours began active advertising, with the first ad hitting the newspapers.

Between the years 1983 and 1995, SOTC grew by leaps and bounds. It moved to new premises at Church gate, Mumbai, installed the first computer for sales and operations, and went through a management metamorphosis with a complete restructuring of the business into autonomous Strategic Business Units (Subs) with a state-of-the-art call centre. SOTC has been fulfilling the travel needs of Indians for over five decades now. It continues to seek out new and exciting destinations to offer to outbound travelers.

SOTC’s outbound business operations broadly encompass Packaged Group Tours for Indians and Individual Holidays. SOTC World Famous Tours caters to those who seek comfort in group travel. It is widely acknowledged to be the most successful package tour brand in India. Recognizing the importance of language markets, SOTC also pioneered

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tours conducted in Marathi and Gujarati under the SOTC brand extensions: SOTC Bhraman Mandal and SOTC Gurjar Vishwadarshan.

SOTC Do-It-Yourself Holidays caters to seasoned individual travelers who want to see the world at their own pace. And for domestic vacationers we have Holidays of India.

SOTC has been the pioneer in the development of organized leisure travel in India. With a sales turnover of Rs 400 crores (2005), growing at 30% p.a., and a wide distribution network of 130 sales outlets and 3500 travel agents across India, it is more than double the size of the next biggest competitor

SOTC - India's Leading Outbound Tour operator

SOTC is the Outbound Travel Division of Kuoni India and the country’s largest outbound tour operator. World Famous Tours is the flagship brand of SOTC, which pioneered the designing and marketing of escorted tours to cosmopolitan travelers in India. SOTC World Famous Tours has escorted over 3,00,000 travelers across the globe, for more than 50 years to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East. Being a 100% subsidiary of Kuoni Travel Holding, Switzerland – one of the world’s largest travel companies - SOTC leverages the advantage of the buying power and travel services to provide customers value-for-money packages. SOTC endeavors to bring alive customers dream holiday. To begin with, SOTC ensures that customer’s family travel safe, sure and secure with the finest Indian families.

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SOTC has a wide distribution network of 130 sales outlets and 3500 travel agents across India to retail our range of products and serve customers better.

SOTC – Voted The Best Outbound Tour Operator 2004, 2005 & 2006

SOTC has been voted the Best Outbound Tour Operator 2004, 2005 and 2006 in India by the Galileo Express Travel & Tourism Awards Committee. The Galileo Express Travel & Tourism awards have been designed to give recognition to the trade for outstanding achievements during the year. The advisory board formulated the criteria for the award in consultation with the renowned audit firm, Deloitte Touche Tohmatsu, which used both a subjective and objective methodology that included a polling process. This award was based on various parameters of judgment and took into consideration factors including revenue generated, operational efficiency, perceived service levels, and the ability to retain and increase market share.

It is also significant to note that Kuoni India, the parent company of SOTC has won all the 3 top awards in the travel operations category at the prestigious Galileo Express Travel and Tourism awards for all its three core activities.

Kuoni was presented the highly prestigious World’s Leading Tour Operator 2006 award ' World's leading tour operator ' at WTM, London in November 2005. The World Travel awards, which are bestowed for exceptional services in the travel sector, have evolved into one the

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industry’s most important annual events over the past few years. The awards are voted on by thousands of travel – sector specialist from over 80,000 agencies in more that 200 countries. And winning one is clear confirmation of a company’s excellence within the travel sector.

SOTC’s Brands

1)-SOTC World Famous Tours

SOTC World Famous Tours is the flagship brand of SOTC, which pioneered the designing and marketing of escorted tours for cosmopolitan travelers in India. SOTC World Famous Tours has escorted over 3, 00,000 travelers across the globe for more than 30 years, to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100% subsidiary of Kuoni Travel Holding, Switzerland - one of the world's largest travel companies SOTC leverages the advantage of the buying power and travel services to provide customers value for- money packages. SOTC has built a reputation that it lives up to its promise to take Indians around the world, while making them feels completely at home, no matter where they are.

2)-SOTC BhramanMandal

In 2002, SOTC BhramanMandal was launched exclusively for Maharashtrian, to cater to their specific needs and requirements. SOTC BhramanMandal offers 'All-inclusive' exciting package tour options to

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Europe, Far East, Australia and New Zealand. While designing the tours, every single need of the Maharashtrian is kept in mind - their culture, eating habits and likes and dislikes

Prominent features of SOTC BhramanMandal Europe and Australia tours are the Predeparture meeting, Travel Kit and an experienced Marathi speaking Tour Manager who accompanies them all the way from Mumbai to the destination and back. Within just five years of existence, SOTC BhramanMandal has become a household name amongst the Maharashtrian

On 14th January in the year 2002, BhramanMandal was born. It was the auspicious day of Sankranti. But more importantly, it was a moment of reckoning for Tourism. As SOTC, India’s Greatest Packaged Tour Company launched BhramanMandal, a packaged tour division exclusively to cater to the needs of Maharashtrians. While designing the tours, every single need of Maharashtrian was kept in mind. Be it their eating habits or their likes and dislikes, every aspect was taken into consideration. But it was the experience of traveling with them, that was even more enriching, for both, the travelers and us

Within just over a year of our existence, BhramanMandal has become a household name among Maharashtrians. And this has been possible because of all of those fellow Maharashtrians who chose to travel with us.

3)-SOTC Gurjar Vishwadarshan

SOTC Gurjar Vishwadarshan was launched especially for Gujarati community residing in India, to cater to their needs of having a Pure Indian Vegetarian Meal with a Gujarati flavor, Gujarati speaking tour

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manager at your service right from India to India and traveling with the finest Gujarati families makes your holiday the most memorable and comfortable one. Gurjar Vishwadarshan launched in the year 2004 received an overwhelming response from the Gujarati's staying all over India. Since then it has been scaling heights year after year today in its 4th year of existence it has become a household name for Gujarati's and is fondly rembererd by Gujarati holiday goers, this has been possible because of all of those fellow Gujarati's who chose to travel with us. With the new positioning of our brand "Expect More" ....in Gujarati which means "Apeksha Thi Vadhare" we assure our patrons that every time they can just expect more with SOTC.

Gurjar Vishwadarshan is one of the business units of SOTC. SOTC has pioneered its position in the packaged tour segment with its unparallel expertise devised over last 50 years. Being a 100% subsidiary of Kuoni Travel Holding, Switzerland - one of the world’s largest travel companies - SOTC leverages the advantage of the buying power and travel services to provide customers value-for-money packages.

4) - SOTC Do-it-Yourself Holidays

SOTC Do-it-Yourself Holidays caters exclusively to the needs and requirements of the discerning Free Individual Traveler. It offers a wide range of customized holidays that allows individual travelers the freedom to define their preferences of the destination, length of stay and pace of travel

Following high-quality standards, SOTC Do-it- Yourself Holidays have ensured accommodation at some of the world's finest hotels allowing for proximity to city centre attractions such as shopping malls, pubs, cafes,

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restaurants and scenic delights. An individual traveler on SOTC Do-it-Yourself Holidays has the option to explore all the attractions of a single city. Or focus on all key cities of a particular country. They can even combine two to eight countries in their holiday, depending on their tastes, time and budget

5) - SOTC Holidays of India

SOTC Holidays of India has something for every kind of traveler - be it families, youth, students, honeymooners, groups or individuals. SOTC Holidays of India offers packages that cover every conceivable tour requirement - whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break. SOTC Holidays of India offers an opportunity to visit and explore all the splendors of India through various categories of holiday packages. SOTC Holidays of India has categorized all holiday packages into Standard, First and Deluxe Class categories.

It also offers a wide range of customized holidays thereby giving individual travelers the complete freedom and flexibility to define their preference of the destination, length of stay and pace of travel

SOTC Holidays of India has something for every kind of traveler - be it families, youth, students, honeymooners - groups or individual. SOTC Holidays of India has a range of holiday options namely: Classic Holidays of India, Fun-filled Beaches of India, Hill Stations & Quick Getaways and Spiritual Retreats.

SOTC Holidays of India is a division of Kuoni Travel (India) Pvt. Ltd., India's Largest Travel and Tourism Company. A market leader in its field, this division markets and operates foreign holiday packages

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under the SOTC World Famous Tours brand in India and in the big NRI markets of the Middle East, USA and UK. It currently operates from 120 sales points across India and boasts of more than 250,000 loyal customers.

SOTC Holidays of India offers packages that cover every conceivable tour requirement; whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break

SOTC Holidays of India offers you an opportunity to visit and explore all the splendors of India through various categories of holiday packages

Classic Holidays of India are time tested popular attractions like Kashmir, Himachal, Rajasthan and Kerala those have proved their ability to completely satisfy the traveler

Fun-filled Beach Holidays offers not just sun and sand but also cool lagoons, clear waters, corals, reefs and beach resorts.

Hill Stations & Quick Getaways offer a break through a multitude of retreats at a short distance from home.

Spiritual Retreats to Rediscover Your Soul provide excursions to various spiritual and hallowed sites

SOTC Holidays of India has categorized all holiday packages into Standard, First and Deluxe Class categories.

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Vision, Mission and Objectives of SOTC

Vision Statement“SOTC vision focuses on providing all travel and travel-

related services to travelers from, within and to India”

Mission and Objectives The mission of the SOTC is:

to advance the sustainable development and management of tourism;

to creating best value for people: our customers, our employees, our shareholders and our business partners

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OBJECTIVES :The Mission will be achieved by pursuing the following strategic objectives and associated actions:  

Objective 1: Assist tour operators in implementation of sustainable tourism through adoption of best practices in their internal operations and management of the supply chain, and in destinations, BY

Facilitating the exchange of best practices adopted to implement the principles for sustainable tourism and the Initiative’s Statement of Commitment

Developing new management tools and adapting existing ones, specific to the industry (EMS, ISO14001, LCA etc) for tour operators own operations, and for sustainable management practices in the supply chain.

Providing a platform for dialogue with other partners (eg. with destination authorities and stakeholders focused on implementing programmes for sustainable development in destination areas).

Involving tour operators in the relevant programmes of work of UNEP, UNESCO, and UNWTO.

Assessing progress made on a regular basis. Facilitating partnerships between members to address issues with

a common voice.

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Objective 2:

Broaden the support for sustainable development among other players in the tourism sector, including of tourists BY

Cooperating with key stakeholders, including business partners, regional and national governments, NGOs and other groups (eg. ECPAT, Blue Flag, etc.) With a common agenda, on specific activities and projects.

Increasing the awareness of key players: tourists, other segments of the tourism industry, local communities and people, tourism trade associations, and local and national authorities.

Objective 3: Create the critical mass of committed tour operators by

Increasing the visibility of committed tour operators and creating the image of the Initiative as a world leader in the area of environmentally, socially and culturally responsible tourism (public and industry recognition).

Increasing membership of the Initiative. Establishing partnerships with other organizations that contribute

to achievement of these objectives, eg. By setting up national / regional focal points for the Initiative to engage in outreach activities.

Strengthening links with regions through tour operators’ associations and UNEP, UNESCO and UNWTO networks, where the Initiative is underrepresented at present.

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Keys to Success for SOTCThe keys to success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Their personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers. Hence their key success factors will include the following:

1. Excellence in fulfilling the promise: Intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.

2. Timely response to customers' requests: SOTC Cannot afford to delay their clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence they need to be continually communicating with the client, including hotels and lodges so as to ensure that they are constantly available to the client meeting their expectations.

3. Solid and fruitful strategic alliances: Considering the nature of their services and our relative infancy on the market, SOTC should realize the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.

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4. Marketing know-how: There will be a need to aggressively market SOTC business and the services they provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

Strategic Areas of Focus1. Maximize the return on public and private investments in tourism.

2. Drive year-round travel from visitors in our domestic target audience and lengthen their average stay by encouraging them to be destination-oriented in this state.

3. Drive year-round travel and lengthen the average stay from visitors from our primary international markets.

4. Provide leadership and support through collaboration with local, regional, national, tribal and private-industry tourism entities.

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MARKETING MIX (7P’s)

PRODUCT

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TARGET

MARKET

PEOPLE

PROCESS PHYSICAL EVIDENCE

THE EXTENDED MARKETIN

G MIX

Product is the combination of tangible and intangible elements. The tourism product, which is mainly the destination, can only be experienced. The views of the location travel to the destination, the accommodation and facility as well as the entertainment at the destination all form the tourism product.

Thus it is a composite product combination of attraction, facilities and transportation. Each of these components has its own significance in the product mix and in the absence of even single components, the product mix is incomplete.

Services Offered by SOTC Escorted tours Customized holidays Trade fairs SOTC sports Corporate tours Special tours – Marathi tours, Gujarati tours, Monalisa Tours

Main Focus In Product~ 27 ~

Sr.No. BENEFIT MEANING WITH RESPECT TO THE SOTC

1 CORE BENEFITThe fundamental benefit

or service that the customer is buying.

Traveling.

2 BASIC PRODUCT

Basic, functional attributes.

Ticketing, hotel reservation.

3 EXPECTED PRODUCT

Set of attributes/conditions the buyer normally

expects.

Customer friendliness, good food.

4 AUGMENTED PRODUCT

That meets the customer’s desires beyond expectations.

Prompt services, comfortable and

convenient trip, spectacular sights, and music.

5 POTENTIAL PRODUCT

The possible evolution to distinguish the offer.

Totally customized tour packages, A grade service

at every stage.

PRICE

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PotentialAugmentedExpectedBasicCore

Pricing in tourism is a complex process. Pricing includes the prices of other services like Air travel, Bus, Railways, Hotels, etc. All are included in tourism package. Pricing also depends on the Geographic location of the destination.

Pricing also depends on Seasonality. Seasonality is the most important factor in pricing. To match demand and supply tourist managers try to get either discount. E.g. Taj is the tourist attraction in India. Pricing is also based on competitors pricing. Pricing is also subject to government regulations. E.g. Air price changes tourism package also changes, if Hotel charges change then also tourism package changes.

Pricing of the tourist product is a complex matter because of its composite nature. Geographical location of the destination affects the pricing decision. At the same time, seasonality factor and varying demand cannot be overruled. The objective of pricing in any other firms is to fetch a target market share, to prevent competition, and to take care of the price elasticity of demand.

A very important way, in which SOTC responded to their highly complex pricing circumstances, is to operate at two levels.

The first level is corresponds with the marketing strategy, which concerns with the product positioning, value for the money, long run return on investments etc.

The second level corresponds to the marketing operations or tactics where the prices are manipulated to match the current demand and competition.

PLACE~ 29 ~

Different distribution strategies can be selected for Tourism marketing. Tourism as a product is distributed as a travel. Internet is also used widely. There is an also small agent spread all over the town who plays a role of place. Large travel companies like Thomas Cook, Cox & Kings, SOTC, etc they act as a wholesalers and these wholesalers also act as a retailer. The two major functions performed by the distribution system in tourism marketing are:

To extend the number of points of sales or access, away form the location at which services are performed or delivered

To facilitate the purchase of service in advance

Different distribution strategies are selected for Tours marketing by SOTC. There are also small agents (who have taken franchise of SOTC) spread all over the town/country who also play a role of place. SOTC act as wholesalers and also act as a retailer. The latest mode of reaching the customers is through Internet that is SOTC has its own website from where information on the tours can be procured, direct booking can be

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done for which the payment can be made through the credit card. SOTC also has its own offices from where booking can be done.

Franchises Offices in all major cities of India 347 offices in India

Tie Ups Flightraja.com (VIA is a Trademark of Flightraja.com) Travelboutiqueonline Premium Tickethub (Sports Tourism)

Internet Booking of Packages and Tickets

PROMOTIONAdvertising and sales promotion in Tourism can be very effective when supplemented by publicity and personal selling. They use electronic, print all sorts of media they use; and it is highly promoted industry. Public or PR (Public Relation) plays an important role in tourism. It is also through recommendation of friends and relatives this is a biggest promotion.

Creation of awareness is an important factor in the formulation of marketing mix for the tourism industry. The promotion task simplifies the activities of informing, persuading and influencing the decisions of potential tourists. The promotion mix plays a vital role as the users of service feel high degree of involvement and uncertainty about the product and their role in buying process.

Some of the important aspects of promotion are:

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Print

Electronic Ads Sales Promotion- EMIs Publicity/PR Word of mouth, personal selling, telemarketing Exhibitions/Trade Fairs Tie ups with Yash Raj Films, Experiencing the Magical moments

of Yash Raj Films with SOTC.

SOTC appointed as the Tour Partner to Kingfisher Airlines for the DLF IPL T20.

Word-of-mouth is a very important tool of promotion in tourism. Research shows that about 80% of the tourist visited different places on the persuasion of their friends and relatives and also their own judgments. SOTC uses electronic, print and all sorts of media as tourism is a highly promoted industry. SOTC gives printed ads in “The Times of India” mentioning the special tours in it with the special prices offered by them. Brochures are another form of communication provided by SOTC to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the images and positioning of the product and the organizations.

PEOPLEIt plays a most important part in tourism. In people local people are very important, that how they treat tourist. The travel agents, guides, staff of travel companies, sales staff, etc they are the people. Travel Company also like Railways, Air, etc. is included in people. Normally a tourist assures a tourism quality like hotels, Travel Company.

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In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. Hence it is imperative that they have to be at their best at all times. Travel guides especially, are expected to have a lot of patience, good sense of humor, tact to transform the occasional tourists into habitual ones, thorough knowledge of the places, linguistic skills etc.

SOTC`S PEOPLE MIX-

• Includes travel agents, tour operators, tour guides et al

• Locals are employed

• Exhaustive training is provided

• 2900 employees through its 347 offices and caters to 3 million customers.

SERVICES MARKETING TRIANGLE

PROCESS~ 33 ~

Company

Employees Customers

TrainingMotivatingImbibing the values

4Ps

Employee skills

The operation process of the tourism firm will depend on the size of the tourism firm. The sequential steps involved in the delivery of the SOTC products are:

Provision of travel information --- The information regarding the travel is provided at a convenient location where the potential tourist seeks clarification about his proposed tour.

Preparation of itinerates------ SOTC prepares its composition of series of operations that are required to plan a tour.

Liaison with providers of services--- Before any form of travel is sold over the counter to a customer; SOTC enters into the contracts with the providers of various services including transportation companies, hotel accommodation, coaches for local sightseeing etc.

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Customer Enquiry/Reaching

the customer

Negotiating the

Terms

Explaining the

details

Completion of customer

formalities and document

submission

-------------------------------- Line of Interaction--------------------------------

Air, hotel reservations as per needs

ItineraryArrange-

ments

Travel/Journeyto destination

Maintaining records and follow up through CRM

Itinerary

Confirmation

-----------------------------------Line of Internal Control/Records--------------------

Contingency provisions

Walk-ing the talk

Return

Journey

Planning and costing tours------ Once the contracts and arrangements are entered into, then the task of planning and costing the tour, this will depend on the tour selected as well as individual requirements.

Ticketing----- The computerized reservation system has in recent years revolutionized the reservation system for both rail and air travel. SOTC also provides the online ticket booking facilities to its customers, which further leads to time saving process for it`s customers.

Provision of foreign currency and insurance--- SOTC in case of foreign travel also provide foreign currency as well as insurance to it`s customers.

PHYSICAL EVIDENCEThe Physical evidence of a tourism product refers to a range of more ‘tangible attributes of the operations. ‘Tangibalising’ the product is a good way of giving positive and attractive hints or cues to potential customers with regard to the quality of the product. For SOTC , Elements Such as quality and attractiveness of décor, effective layout of establishment, surroundings and quality of promotional materials are all important.

Market Segmentation

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Indian travel market can be classified into two broad categories

International Travelers- Those crossing International borders

Domestic Travelers - Those travelling within India.

International Travelers can be classified as Inbound Travelers (those who travel into India from Overseas) and Outbound of India (who travel internationally)

Inbound market is further segmented into six broad categories

1. Holiday and sight seeing.2. Business travelers3. Conference attendees 4. Students5. Visiting friends

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6. Relatives and others

Targeting:-Such segmentation is useful when deciding the offerings to target a particular segment. For example,

The mass market consists of vacationists that travel in large groups and prefer all-inclusive tours. They are generally conservative.

The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This group includes pensioners and retired people.

The individual market consists of chairmen, senior executives, etc.

As the lifestyle changes, consumption of services might change. For example, a newly married couple might prefer romantic holidays, but once they have children they would prefer family vacations where there are plenty of activities to entertain kids. Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations.

4 I’s of Services-Inflexibility

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The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on a flight is fixed so it is not possible to meet sudden upsurges in demand similarly restaurants tables, hotels beds and flights seats remain empty and unused in periods of low demand.

Inventory / Perishability

It is related to the fact that travel products are intended to be consumed as they are produced. For example, an airline has seats to sell on each flight; a hotel has rooms to sell for each night. If the airline is not able to sell all its seats on its flight, or a hotel is not able to sell its rooms for the night then the opportunity to sell the product is lost forever. Service sector cannot keep inventory like products. To overcome this problem, the travel industry has come up with various marketing strategies. One is to overbook. An airline overbooks its seats to a certain extent in anticipation that even though certain customers do not turn up but the flight will be fully seated. Another strategy is multiple distributions. For example a customer can buy an airline ticket from an airline, tour operator or from a travel agent. The chances of perishability are reduced. If the tourist cannot visit the place, the opportunity is lost. Hence, this becomes one of its important characteristics.

Inconsistency

A general norm is that in Travel and Tourism industry the product or the package of the tourism can be standardized i.e. for example of 2 days 3 night in so and so hotel, but the actual experience of consuming this package is highly inconsistent. We hear a lot of travel stories which becomes a portrayal of a lot of bad experiences for example the tourist

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guide may not be good, the hotels lodging and boarding was bad etc. Therefore there is high level of inconsistency prevailing.

Intangibility

Travel products cannot be touched as they include flight experience on an airplane, cruise on an ocean liner, a night’s rest in a hotel, view of the mountains, a visit to a museum, a good time in a night club and much more. These products are experiences. Once they have taken place they can only be recalled and relished.

PEST Analysis For SOTCEnvironmental influences can be analyzed by using the PEST analysis.

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PoliticalThe political factors are the main driving force of the industry. The Indian tourism industry is built on the backbone of Government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry, the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government. The major reason as to why tourists visit India is for the vast and rich heritage that our country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges high rates of taxes on the luxury and the star category hotels and this has always been a cause of disagreement between the hotel associations and the Government. There are many areas where the growth of tourism has not been rapid or has seen dramatic fall because the political environment has not been conducive. Examples are the North East for the former and Kashmir for the latter. The neglect of the Government in developing the North-East has led to a situation where there is practically no tourism in the seven states.  Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual decimation of the flourishing tourism industry. However, there has been a change in many of the policies of the Government with regard to the tourism industry. The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states.

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Euromonitor International's Travel And Tourism in India report states that the Government of India increased spend on advertising campaigns (including for the campaigns ‘Incredible India’ and ‘Ahithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism in India. The ministry promoted India as a safe tourist destination and undertook various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations. 

Economic:

The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world. Since we are concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has led to a tourism boom the world over and India has been no exception. There have been more people coming into the country with more cash than ever before. This has lead to an increase in the demand for better hotels. People who previously used to come to the country on a shoestring budget and hunt around for the cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in the number of hotels in the country. However, an increase in spending does not only limit itself to accommodation. The increase in the spending is also evident in the increase in the number of people traveling by air. Even the number domestic tourists traveling by air has dramatically gone up.

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A study Conducted by Ministry of Tourism about the Foreign tourist arrivals in India. Tourism Industry is growing over the years.

Month 2006 2007 2008% change(2007/2006)

%change(2008/2007)

Jan. 459489 535631 591337 16.60% 10.4Feb. 439090 501692 561393 14.30% 11.9March 391009 472494 541478 20.8 14.6April 309308 350550 384203 13.4 9.6May 255008 277017 200840 8.6 8.6June 278320 310364 340159 18.5 9.6July 337332 399866 429856 17.8 7.4August 304387 358446 391423 1.3 9.2September 297891 301892 330874 13.6 9.6October 391399 444564 452566 20.3 1.8November 442413 532428 521247 10.2 -2.1December 541571 596560 521990 14.3 -12.5

Source :- Ministry Of Tourism

Social:Tourism was always looked upon as something that led to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state. This had a ripple effect on the country. People became cautious, especially of the international tourists.

However some places such as Kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them. In addition, tourism as a form of recreation has really caught on. People

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themselves have started traveling and are willing to travel to a place that is out of the way and exotic. While traditionally traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for adventure tourism and also visit places that might be exotic and cannot really be called hospitable. For example, now places like Leh and Lakshadweep are mentioned in the same breath as Goa or Kashmir.

Technology:Although technology does not seem to be a major influence at first glance, it plays a major part in the promotion of a place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Improved technology in the field of communication at cheaper costs has resulted in many remote and inaccessible areas of the country getting connected to the rest of the world. This connectivity has made these places visible to the world. Better communication means access to media. And that is very important if any place wants to be on the world tourist map. Similarly online ticket booking and better transportation facilities have lead to a dramatic increase in the number of tourists visiting any parts.

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SWOT Analysis for SOTC

Strength-1) India`s largest outbound tour operator.2) Offices in all major cities of India.3) Tie ups with other tour operators and travel agents across India.4) Effective promotional campaigns like Experiencing the Magical

moments of Yash Raj Films with SOTC.5) Internet booking of tickets and packages.6) Cost Saver tours designed by SOTC, keeping in mind the budget of

the traveler, without compromising on sightseeing and basic holiday needs.

7) Created new markets through innovative packages namely `BhramanMandal` dedicated to Marathi speaking population and `Gurjur Vishwadarshan` brand dedicated to Gujarati speaking population.

Weakness-1) Not Focusing on Rural areas and Indian railway networks2) Lack of corporate offices and small city offices across the nation3) Feedback system exists for namesake.4) Ineffective customer services.

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Opportunities-1) Increase in NRI Population

2) Increase in per capita income.

3) Increasing trend of exploring India

4) Increase in online booking

5) Increase of Government support for tourism.

6) Increase in outbound International Traveler Market

7) Increase in number of tourists for upcoming sports events in India like Commonwealth Games, 2010 and Cricket World Cup, 2011.

Threats-1) Economic conditions

2) Security

3) New entrants

4) Local Travel Agents and travel companies.

5) Competitors

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PORTER’s Five Forces Model for SOTC

1. Threat of New entrants

Lowered consumer search costs and decreased switching cost open up a market for Potential new entrants , this reduces the entry barrier for new companies by opening the distribution channel and Capital requirement

Internet is one of possible bye pass instrument through which new entrants can enter the market, this can reduce entry barrier for new entrants.

2. Rivalry Among Existing Firm within the Industry

For SOTC biggest rivalry in India is From Cox and Kings , Thomas Cook

The Internet brings many more companies into competition with one another by expanding geographical markets and reduce entry barrier, it can raise the rivalry within the industry and increase the pressure for price discounting. For Example Makemytrip.com, Travelguru, Yatra.com etc.

3. Power of Supplier

By reduced entry barrier and increasing number of competitors the power of supplier will increase.

4. Power of Buyer

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The reduced Switching costs of Buyer also increase the bargaining power of buyer.

The customer can easily compare different prices and gain knowledge about products, thus prices becomes the most important criterion.

5. Threat Of Substitutes

Similar Products and services offered by the competitors at cheaper rates.

Internet tourist sites like makemytrip.com, yatra.com etc. offers new possibilities and instruments to meet customer needs by offering new products and services which could substitute existing ones

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Marketing Plan for SOTC( Religious tour to Vaishno Devi)-Vision-“SOTC vision focuses on providing all travel and travel-related services to travelers from, within and to India”

Mission and objectives- To create value for all religious people, giving them all comfort and convenience from the start to the end of their journey.

4P’s of Marketing Plan- Product-

A SOTC religious tour offers following services for all the devotees who have taken our religious tour package-

1) Pick and Drop services would be provided at various places in northern India i.e. New Delhi, Jalandhar, Chandigarh etc.

2) Boarding and lodging3) Tour guide and taxi cab service.4) Free breakfast coupons will also be provided.5) Water bottles and soft drinks also provided.

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6) Pooja thaal and other religious material would be provided by SOTC to avoid any inconvenience like long queues.

7) Tie up with Shrine Board in order to provide dinner to all devotees at Bhawan.

Price-This religious tour will cost you -

1) 3 days and 2 nights stay would cost you Rs 7999/- onwards.2) 20% discount would be given to customer who will use

chopper.3) 30% discount would be given to customers staying in a

luxurious room in hotels.4) Budgeted hotels are also available for the customers.

Place-Customers can buy tickets and package from the following places-

1) Online booking at SOTC.in2) Local tour operators and travel agents.3) SOTC branches and outlets4) Tie up with SBI and ICICI Banks for the sale of tickets.

Promotion-

There are various promotional campaigns through which SOTC can promote this religious tour like-

1) Advertisements on all bhakti channels and all radio channels of Northern India.

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2) Brochures and pamphlets would be distributed along with newspapers.

3) Postures will be displayed at all temples.

Segmentation-1) AGE GROUPS- 50 and above.2) Geographical- Northern region3) Religious people

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PROJECT OUTCOMES AND RECOMMENDATIONS-Through this project we came to know about the current scenario of tourism industry in India with respect to the world. We also came to know about SOTC, it`s brands, how SOTC uses the 7P`s of marketing and how it segmented the market. This project also tells us about the 4 I`s of services in tourism industry, PEST analysis, like how various sectors of environment affects the tourism industry, SWOT analysis of SOTC. In spite of having so many strengths, SOTC also have so many weaknesses like shortage of branches and offices across India, ineffective customer services, not focusing on rural areas and Indian railway network. In order to avoid any inconvenience to its customers, it should open new branches, more effective online ticket booking facilities and focus on small cities and towns. Through porter`s five forces model we have learned about the external environment of SOTC, like rivalry among competitors, threat of new entrants in tourism industry, it should focus on it`s online ticket booking facilities to restrict online tourism provider like makemytrip.com, yatra.com. We have also made a separate marketing plan for SOTC`s religious tour to Mata Vaishno Devi which will be beneficial for all devotees visiting Vaishno Devi for worship.

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References:1. www.sotc.in 2. www.ibef.org 3. www.tourism.gov.in 4. SOTC branch Central Plaza 5. www.google.com 6. www.bplan.com 7. www.kuonitravels.com 8. Times of India Newspaper

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