Sotcfinal

MARKETING PROJECT ON

SOTC:

PRODUCT UNDERTAKEN:TOURISM (SERVICE)
UNDER THE GUIDANCE OF

Mr MK MENON

Submitted by:

ACKNOWLEDGEMENT

Setting an endeavor may not always be an easy task; obstacles are bound to come in its way and when this happens, help is welcome and needless to say without help of those people whom we are mentioning here, this endeavor would not have been successful. We wish to thank our parents for their undivided support and interest, who have inspired us and encouraged us to go our own way, without whom we would unable to complete this project.
We are grateful to our Marketing Professor, Mr Menon for his continuous support for the project, from initial advice in the early stages of conceptual inception, and through ongoing advice and encouragement to this day.

Contents INTRODUCTION 4 SOTC: An Overview:- 5 MARKETING MIX OF SOTC 5 PRODUCT 5 PRICE 6 PLACE 7 PROMOTION 7 SOTC`S PEOPLE MIX- 8 PROCESS OF SOTC 9 PHYSICAL EVIDENCE 10 MARKET SEGMENTATION 11 TARGETING 11 SWOT ANALYSIS- 12 Strength- 12 Weakness- 12 Opportunities- 12 Threats- 13 KEY TO SUCCESS FOR SOTC 13 ANNEXURE 15 REFERENCES 16

INTRODUCTION

Travel and tourism industry is one of the largest single businesses in world commerce and its importance is widely recognized. Travel and Tourism industry in India is the biggest service industry, with a contribution of around 6-7% towards the GDP. Tourism industry also helps in foreign exchange earnings. Due to many benefits that can be reaped from the tourism industry, many countries have put tourism under their national development agenda. Countries like Switzerland have tourism as one of the major revenue generating industry. SOTC was established in 1949, since its inception it has grown exponentially to become one of the largest tourism companies in India. SOTC handled its first group tour to the US in 1976 during the bicentennial celebration , it was the major breakthrough for SOTC.SOTC’s outbound business operations broadly encompasses packaged group tours for Indians and individuals holidays. It is widely acknowledged to be the most successful package tour brand in India. SOTC became the outbound travel division of Kouni India in 1996.SOTC has been the pioneer in the development of organized leisure travel in India. It has a distribution network of 130 sales outlet and 3500 travel agents across India, it is more than double the size of next biggest competition. SOTC leverages on the advantage of economies of scale because of its buying power and travel services to provide customers value for money. STOC endeavors to bring alive customers dream holiday. To being with, SOTC ensures that customer’s family travel safe, sure, and secure. SOTC has been voted as “Best Outbound Tour Operator” three times in a row(2004,2005,2006) by the Galileo Express Travel & Tourism Awards Committee. It also won the Pacific Asia Travel Association Gold Award (PATA) in marketing –Industry category in 2009. It has also won the India’s most customer responsive travel and tourism company award in 2010.

SOTC: An Overview:-

Established in 1949 with just five employees at an office in Cawasji Hormusji Street, Mumbai, SOTC has grown to become one of India’s largest travel companies. By the year 1968, the Company had 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. SOTCs 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 tours conducted in Marathi and Gujarati under the SOTC brand extensions:
MARKETING MIX OF SOTC

PRODUCT

Product is the combination of tangible and intangible elements. The Tourism(SOTC) 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

PRICE

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

PLACE

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 1. To extend the number of points of sales or access, away form the location at which services are performed or delivered 2. 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 customers is through Internet that is SOTC has its own website from where information on the tours can be procured, direct booking can be done for which the payment can be made through the credit card. SOTC also has its own offices from where booking can be done.
1) Franchises: Offices in all major cities of India,347 offices in India
2) Tie Ups: Flightraja.com
3) Travel boutique online
4) Internet Booking of Packages and Tickets

PROMOTION

Advertising 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 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- 1. Includes travel agents, tour operators, tour guides. 2. locals are employed
3Exhaustive training is provided
4 2900 employees through its 347 offices and caters to 3 million customers

PROCESS OF SOTC

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

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: 1. 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. 2. Preparation of itinerates------ SOTC prepares its composition of series of operations that are required to plan a tour. 3. 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. 4. 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 physical evidence. 5. 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 its customers. 6. Provision of foreign currency and insurance--- SOTC in case of foreign travel also provide foreign currency as well as insurance to its customers.
PHYSICAL EVIDENCE

The 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

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 travelers
3. Conference attendees
4. Students
5. Visiting friends
6. Relatives etc.

TARGETING

Such segmentation is required when targeting the offerings to a particular segment. For Example 1. 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. 2. The individual market consists of chairmen, senior executives, etc. 3. 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
SWOT ANALYSIS-

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 ‘GurjurVishwadarshan’ brand dedicated to Gujarati speaking population.
Weakness-
1) Not focusing on Rural areas and Indian railways network. 2) Lack of corporate offices and small city offices across the nation. 3) Feedback system exists for namesake. 4) Ineffective customer services.
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 in 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
KEY TO SUCCESS FOR SOTC

The key to success for SOTC 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 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 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 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, so as be assured of constant flow of customers, fulfilling their needs at every opportunity.
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 prospective client minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

MISSION AND OBJECTIVES-The Mission of SOTC is –1) to advance the sustainable development and management of tourism.2) to creating best value for people: our customers, our employees, our shareholders, and our business Partners.OBJECTIVES:The Mission will be achieved by pursuing the following strategic objectives and associated actions:Objective1: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, BY1)facilitating the exchange of best practices adopted to implement the principles for sustainable tourism and the initiative’s statement of commitment2) developing new management tools and adapting existing ones, specific to the industry(EMS,ISO14001,LCA etc) for tour operators own operations, and sustainable management practices in the supply chain.3) providing a platform for dialogue with other partners eg. with destination authorities and stakeholders focused on implementing programmes for sustainable development in destination areas.4) involving tour operators in the relevant programmes of work of UNEP,UNESCO and UNWTO.5) assessing progress made on a regular basis.6) facilitating partnerships between members to address issues with a common voice.Objective 2:Broaden the support for sustainable development among other players in tourism sector , including of tourists BY1)cooperating with key stakeholders ,including business partners ,regional and national governments, NGOs and other groups. With a common agenda, on specific activities and projects. 2)Increasing the awareness of key players :tourists, other segments of the tourism industry, local communities and people, tourism trade associates, local and national authorities. |
ANNEXURE
REFERENCES 1. managementfunda.com/travel-tourism- industry 2. www.etstrategicmarketing.com/smSep-Oct2/ forum.htm 3. www.managementparadise.com/forums/ service-sector 4. yoginvora.wordpress.com/2009/03/08/ travel-tourism-industry 5. youfind.us/sotc+tours+packages,5.html

References: 1. managementfunda.com/travel-tourism-​industry 2. www.etstrategicmarketing.com/smSep-Oct2/​forum.htm 3. www.managementparadise.com/forums/​service-sector 4. yoginvora.wordpress.com/2009/03/08/​travel-tourism-industry 5. youfind.us/sotc+tours+packages,5.html