Narendar Kumar Prasanth

12794858

Contents
Introduction.................................................................................................................................................. 2 Overview .................................................................................................................................................. 2 Success ................................................................................................................................................... 2 Products and Services....................................................................................................................... 2 Awards and recognition ..................................................................................................................... 3 Market share ....................................................................................................................................... 3 Success Explained ..................................................................................................................................... 4 Strategic Planning .................................................................................................................................. 4 Advance technology............................................................................................................................... 4 Grow with Employee .............................................................................................................................. 5 Unstoppable ............................................................................................................................................ 6 Leadership ................................................................................................................................................... 6 Recommendation ....................................................................................................................................... 8 Loyalty Program ..................................................................................................................................... 8 Special Packages ................................................................................................................................... 8 Sports Package .................................................................................................................................. 8 Conclusion ................................................................................................................................................... 8 Reference .................................................................................................................................................... 9

Narendar Kumar Prasanth

12794858

Introduction
Overview
Indias No.1 online travel company MakeMyTrip (MMYT) was founded by Deep Kalra in 2000.The Company started its journey targeting the Non-Residence of India (NRI) to India market. The strong belief of MMYT is low operation cost and lean structure. The company offers a variety of products (Air/Bus/Rail Tickets, Holiday packages, Hotels, Car Rentals and so on) which makes them to lead the competitive travel market. It makes majority of its revenue from Air Ticketing commission as agents. MMYT is recognized for its transparency and reliability. MMYT also provides customers needs and wants, and delivers consistency with its 23 offices across India and 4 international offices with dedicated 24x7 customer support.

MMYT steadily developed its offline business like franchise and it also has 23,450 travel agents across 700 cities and towns. The companys earns revenue of 77% by selling airline tickets and 20% revenue from hotel and package and 3% from other add-on services.

Success
The success of Make My Trip can be measured by the following:
Products and Services

MMYT offers a variety of travel and travel related products and services to their customers such as Bus tickets, Air tickets, Rail tickets, holiday packages, car rentals and also provide visa processing and travel insurance. MMYT becomes one stop shop for all customers where they can combine multiple products and offer a customized packages based on customers needs.

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MMYT is the only one who provides wide-range of products and that keeps them ahead of their competitors.
Awards and recognition Success of Make my trip can also be measured by the awards and recognition it has achieved. The following are the few awards achieved by MMYT from the year 2005-2011.

Great Places To Work 2011 - #1 in Professional Services Great Places To Work 2009 - #2 in Professional Services Most Preferred Online Travel Agency - 2008 Nominated World Travel Awards - 2007 Best Online Travel Company - 2007 Singapore Airlines - Top agents award 2010-11 Malaysia airlines - Top agent award 2009-10
Market share

A Research company estimates that the overall online travel market in India is $1 Billion where MMYT leads domestic market by acquires 48% market share, where as the closest competitor Yatra.com acquires half the market of MMYT. Cleartrip.com holds 18% of the OTA market. This shows that MMYT is up ahead its competitors.

Market Acquisition
others 10% Make my Trip 48%

clear trip 18%

yatra 24%

Narendar Kumar Prasanth

12794858

Success Explained
Strategic Planning
Strategic planning and focus towards consumer satisfaction keeps them ahead in the competitive market. MMYT offers their products based on the customer needs. Only 11% of the population in India uses internet, to serve the rest of the offline population MMYT opened 23 regional offices in India. They also introduced Online Rail and Bus booking which maximizes their revenue. Recently they introduced multi-airline ticketing, where customer can choose two different destinations one after the other. MMYT developed a mobile application to attract the customers who travel often, which will help them to book their tickets from anywhere in the world. MMYT is expanding its business by acquiring various travel websites all over the world. They also use micro sites that reflect back to MakeMyTrip.com website. These micro sites are target oriented which are created to attract particular area or particular market, like hotelsindelhi.com is a micro-site of MakeMyTrip. These websites are search engine friendly. When a user searching a hotel in Delhi will land up to this page through search engine and this page is connected to the parent website makemytrip.com. Micro sites are used by most of the top companies as their marketing strategy like Pepsi uses refresheverything.com. These micro sites help to launch a product in stealth mode without associating itself with the parent website. So that even if the product turns into failure it will not affect the parent brand image.

Advance technology
MMYTs advance secured technology platform integrates with customer service, sales and operations. Their user friendly website provides low- cost and alternative routes with combination of hotels at cheapest price. It allows its customer to find the route by just typing the land mark. Their website is also linked directly with the suppliers server by which they are able to show availability and price at real-time. The website is capable of handling 1 million user requests at a time. Irrespective of the website, MMYT also launched mobile application, which allows the users to access the whole content of the website from their mobile phone. MMYTs adaptation to the latest technology serves the need of the consumer at ease.

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Grow with Employee

The companys sustainability is determined by its growth and success. MMYTs one of the key consideration is employee retention. They consider employee for all the decisions made in an organization, which makes the employee valued. They motivate their employees for giving cash rewards and awards for every achievement. They reward every travel coordinator (staff) with trophy and certificate for every positive email they receive from the customer. Every employee has a score card, they are marked 3 points for every positive feedback and minus two for every negative feedback from the customer; they can exchange these points for DVD players, mobile phone, ipods, etc. These rewards make them committed to their work while increasing the productivity and achieving customer satisfaction at all stage.

The company provides numerous benefits to their employees, highly motivating them to work more and achieve more. Flexible working Discounted holiday package for family and friends Yoga center

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The welcoming and friendly atmosphere of MMYT makes the employee comfortable to share their ideas and views. Every employees idea is considered and valued. This makes MMYT No. 1 great place to work.

Unstoppable
Easy to adapt strategy, leads them to success. Below table shows how MMYT was able to manage its loss in Air Ticketing by improving the sales of other products.
3 (in thousands except EPS) months 31, 3 months 31, YoY Change YoY Change constant currency(1) in Year March 2012 Ended 31, Year March 2013 Ended 31, YoY Change YoY Change constant currency(1) in

Ended March 2012

Ended March 2013

Revenue

$46,954.7

$55,189.0

17.5%

23.5%

$196,599.3

$228,821.9

16.4%

29.7%

Air Ticketing Hotels packages &

$17,836.8

$13,144.9

-26.3%

-21.2%

$66,250.7

$56,769.2

-14.3%

-3.3%

$3,185.7

$7,696.8

141.6%

146.1%

$18,226.3

$27,592.2

51.4%

65.7%

March 31, 2013 MMYT generated revenue of $228.8 million which is an increase of 16.4% over the previous year which was 196.6 million dollar. Major revenue for MMYT is from Air Ticketing which is decreased by 14.3% from the past year. The revenue from Hotel and Package was increased by 51.4% from the previous year. Internet usage in India is growing rapidly and huge change in Indian online travel market where most of the people prefer online tour booking. The net profit margin for hotel and packages is relatively higher than the commission earned from Air Ticketing. Now, the low-cost airlines have reduced the agent commission margin which reduced the profit margin of MMYT and other online travel agents. MakeMyTrip changed its strategy and started to promote Hotels and tour package instead of air ticketing. The adaptation to the change submersed the loss and the company grows steadily.

Leadership
The strategic leader behind the success of MakeMyTrip is the founder and Chief executive officer Deep Kalra himself. He noticed that usage of internet was growing high in India and low
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cost airlines were also growing fast and there was no competitors for online travel market in India so he built MakeMyTrip the first online travel company in 2000 which made convenient for the people to book cheap airline ticket from anywhere in the world. Kalra was committed to work and he developed new strategies while establishing his company. He understood that the company can be successful only if the employees, customers and stakeholders are happy and satisfied. Being inspired by Zappos book of culture, Deep introduced rewarding system to satisfy his loyal employees. He started to develop strategies that provide the needs of the customer. Kalras marketing strategies were target oriented where he segmented his customers into two category, online and offline customers and developed services accordingly. He introduced different services like home delivery of tickets, mobile application, 24x7 customer service where customers can call and book their tickets anytime and anywhere. MMYT keeps updating the products and services to the latest and possible technology which minimizes the effort of the customer. MMYT was listed in Initial Public Offering on NASDAQ which became the first Indian travel company to be listed overseas.
Passion for winning goes beyond merely chasing targets and achieving them. It's the zest and zeal with which one goes about the achievement. It's not only about winning, it's about dominating! -By Deep Kalra

Kalra doesnt stop with the success here. Continuous expansion of his business from airline tickets to Bus tickets in 2008 and later Rail ticketing at 2009.In May 2010 he also introduced Car rental offering flight transfers at four major cities (Delhi, Mumbai, Hyderabad, Bangalore) in India. He is also investing in expansion of travel agent and in technology. He believes that acquiring companies will lead to expansion of business and a step into new market, previous acquisition of travelvala.com led to bus ticketing network. Keyur Joshico and Rajesh Magow are the two other Co-founders of MakeMyTrip.com. Keyur is head of sales and business development and Rajesh is in charge of finance and investors, along with Kalra these two people lay a platform for the success of MakeMyTrip.com. The unity and
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bond between the stake holders, employee and employer will grow the company to the enormous height that will be difficult for the competitors to reach.

Recommendation
Loyalty Program
Customers always look for the benefits. MMYT can introduce loyalty programs which will increase the loyal customers and attract new customer. MMYT can introduce 1x points for every purchase of Air ticket and 2x points for every Add-on service (Hotel accommodation, tour package, bus tickets). These points collectively can be availed on any service of MMYT. Note: 1 Point = Rs. 1

Special Packages
Sports Package

MMYT can launch sports package; for example, when there is a T20 Cricket world cup held, MMYT can create a package which includes Air/rail/bus tickets, hotel accommodation, Match tickets, etc. This will attract a new segment of customers.

Conclusion
The strategic planning and Leadership of Deep Kalra (Founder) led to the success of MMYT. Active analysis of competitors and upgraded technology will help the company to sustain for a long term.

Narendar Kumar Prasanth

12794858

Reference

Cleary, T. (September 1, 1992). The Book of Leadership and Strategy. Shambhala. Coffey, J. O. (2009, July). Why Happy Employees Determine Your Success. Retrieved from executivetravelmagazine.com: http://www.executivetravelmagazine.com/articles/why-happyemployees-determine-your-success LACY, S. (2010, August 13). What Indian Entrepreneurs Should Learn From MakeMyTrips Rocket IPO. Retrieved from techcrunch.com: http://techcrunch.com/2010/08/13/what-indian-entrepreneursshould-learn-from-makemytrip%E2%80%99s-rocket-ipo/ Limited, M. (2013). MakeMyTrip Press Release. Retrieved from MakeMyTrip: http://investors.makemytrip.com/phoenix.zhtml?c=238356&p=irolnewsArticle&ID=1823172&highlight= MakeMyTrip. (n.d.). About. Retrieved from MakeMyTrip: http://www.makemytrip.com/aboutus/company_profile.php Richard L.Hughes, K. M. (2005). Becoming a Strategic Leader: Your Role in Your Organization's Enduring Success. Jossey-Bass; 1 edition. Special Nodes. (2011, August 9). MakeMyTrip and the controversial SEO-led microsite strategy. Retrieved from Tnooz.com: http://www.tnooz.com/2011/08/09/news/makemytrip-and-thecontroversial-seo-led-microsite-strategy/ Today, I. (2011, Feb 15). Developing-Ideas-into-Successful-Business-Deep-Kalra. Retrieved from jagranjosh.com: http://www.jagranjosh.com/articles/Developing-Ideas-into-Successful-Business-DeepKalra-1297752808-1