HIGHER NATIONAL CERTIFICATE IN BUSINESS

ASSIGNMENT BRIEF

QUALIFICATION: B.TECH HNC BUSINESS UNIT NO AND TITLE: UNIT 4- MARKETING PRINCIPLES STUDENT NAME: THOTA NITHIN SRI SAI BHASKER ASSESSOR NAME: SWATI RAGHUPATRUNI DATE ISSUE: 20-5-2013 DEADLINE: 18-6-2013 SUBMITTED ON: 18-6-2013

ASSIGNMENT TITLE: A REPORT ON STP ANALYSIS AND EXPANSION OF TOURS AND TRAVELS OF INDIA

_______________________________

GAYATRI VIDYA PARISHAD

A REPORT ON STP ANALYSIS AND MARKET EXPANSION OF TOURS AND TRAVELS OF INDIA

STUDENT DECLARATION
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

T.N.S.S.BHASKER

Student signature

Date: 16-2-2013

A REPORT OF SEGMENTATIO, TARGETING AND POSITIONING OF TOURS AND TRAVELS OF INDIA

ABSTRACT: This report deals with the segmentation targeting and positioning of TOURS AND
TRAVELS OF INDIA. They are currently following marketing orientation. The report deals with the various factors that influenced in expanding the market in southern India. After studying the various factors that affect tourism industry Andhra Pradesh is the suitable place for launching business.

INTRODUCTION: TOURS AND TRAVELS OF INDIA is the tourist agency in

northern India. It is currently following marketing orientation. The company want to change its existing business portfolio and to expand their business. It offer different packages and different for different types of customers in the market. MR Pille recently has become one of the boards of directors of the company. Currently the organisation is doing its activities in northern India. He wants to expand the market to southern India.

OBJECTIVES: To identify the micro and macro environmental factors that affects the tourism industry. To find the different segments in tourism industry in Indian market. To choose a targeting strategy and positioning for TOURS AND TRAVELS OF INDIA. To know about the buyer behaviour in different buying situations. RESEARCH METHODOLY:
Data can be classified in to two types depending on sources used for collection data. First one is primary data and the other is secondary data. In this report secondary data is collected from the internet and books.

MICRO ENVIRONMENTAL FACTORS:

CUSTOMERS: Customer is one of the most important actors in micro environment of
company profile. The company has to satisfy the needs and wants of the customer and maintains strong relations with them. Here TOURS AND TRAVELS OF INDIA targets consumer market in which the company offers services for customers for personal consumption.

COMPETITORS: The customer value and satisfaction provided by a company must

greater than its competitors in that industry. Otherwise long run profits and sustenance is not

achieved by the company. Competitive advantage is one of the key factors in determining company profits. Indian chardam yatra, Easy tours of India, Kesari are the some of the Competitors of TOURS AND TRAVELS OF INDIA. There are so many competitors both small and big in tourism industry in India.

THE COMPANY: The TOURS AND TRAVELS OF INDIA should think properly in
understanding needs and wants of the customer. Management of the company should make decisions which satisfy the customers to achieve customer value and relationships.

PEST ANALYSIS:
ECONOMICAL ENVIRONMENT: It is the very important factor in macro
environment which determines the sustenance of the company. Economic environment consists of factors that affect the buying power of customer. As India is a developing economy the company should very careful in pricing the service. The changing trends in the economic conditions of country severely affect the business of the company.

POLITICAL AND SOCIAL ENVIRONMENT: Marketing decisions in

tourism industry are severely affected by political factors. It contains laws and pressure groups which influence the organisations. Changing the government results in enforcement of new laws and regulations may affect the business of the company. In India historical places, roads and railways are under government control so other dependent sectors like hotels, tourist operators mainly needs government support. Coming to social factors visiting international tourists may lose the identity of native place example in India is Goa. In early it has hippy culture but now international culture develops there.

TECHNOLOGICAL FACTORS: Technology is one of the major factors in

bringing dramatic change in human life. Communication and better transport facilities have made drastic increase in tourism industry at that particular tourist place. The company should offer the service to customers in minding the technological improvements in future.

STP ANALYSIS:
SEGMENTATION: Tourism industry is one of the largest employment generators in
service sector. India is so diverse in culture as well as in geographic structure. Tourism market can made in to innumerable segmentations. Segmentation based on geographic:

1. City: Major cities where population is high, there the availability of the customers is maximum 2. Climate: Southern India is hot compared to northern India, so in summer there are tours in southern states to cold places due to hot weather. Segmentation based on demographic: 1. Income: Based on income level of income of customers different facilities are offered to middle class and upper middle class income level of customers. 2. Occupation: Based on the occupation of the customers different tours are offered like for students and teachers there are educational tours, and for retired ones sightseeing tours etc. 3. Religion: Religious tours are offered to different religions for example Hindus are interested in tours related to temples and their religious holy places, while Muslims are interested in mosques. Based on psychographic: 1. Life style: Depending on the interests of the customer different types of tourisms like adventure, medical, sightseeing etc are offered to different customers. Based on behaviour: 1. Occasions: There are some occasions are occurred in India at different states like camel fare, kumbhmela, pushkar etc. On those occasions tourists in particular places is very high.

TARGETING: After studying different market segments there is need for the
company to identify the target market for their business different types of target markets are TARGET MARKET: A set of buyer sharing common needs or characteristics that the
company decides to serve. (Principles of marketing, Philip kotler 2011.)

1. UNDIFFERNTIATED MARKETING: Here the company ignores different

segments present in the market. Here the company focuses on mass marketing strategy. Generally the companies which design products for large number of buyers go for this type of targeting marketing 2. DIFFERNTIATED MARKETING: Here the company identifies the target market based on different segments present in the market. By maintaining this type of marketing company expects for high sales. This type of target market segment is suitable for TOURS AND TRAVELS OF INDIA.

3. CONCENTRATED MARKETING: In this type company invests more shares

on only few small segments. There are two types of marketing strategy for the above mentioned target markets 1. LOCAL MARKETING: Here the firm concentrates on needs and wants of the local customers and specific stores are placed in cities for local customers. Here the store is placed to satisfy the needs of local customers. For TOURS AND TRAVELS OF INDIA this marketing strategy should be followed for better penetration of the company in to customer and to increase sales. 2. INDIVIDUAL MARKETING: Generally the company which follows concentrated market goes for this type of marketing. Since the targeting market segment is very small company goes to person individually.

POSITIONING: The positioning of the company is called value proposition. Positioning

gives the customer satisfaction as well as competitive advantage.

VALUE PROPOSITION: The full positioning of a brandthe full mix of benefits upon
which it is positioned (principles of marketing, Philip kotler 2011).

Generally there are four positioning strategy followed MORE FOR MORE: This type of positioning involves in providing a high quality product/service and charging a high price. This positioning strategy is used for niche market products. Here the more the customer is expecting the more is the quality and higher is the price. MORE FOR SAME: This positioning involves in companies which follows the strategy more

quality is offered to customers at same price. It offers the same quality product with low price compared to other companies. SAME FOR LESS: Here the company offers normal products for those customers who want less than that. LESS FOR LESS: In this type the company offers product/service with low quality and hence prices is low for that type of product/service. It is not so popular in marketing. MORE FOR LESS: It is the winning value proposition which offers the high quality product at low price. This strategy is useful in making customer relationships. Since TOURS AND TRAVELS OF INDIA is new to market in south India, to achieve customer value and satisfaction it is better to follow more for less targeting strategy. The positioning statement for TOURS AND TRAVELS OF INDIA is Enjoy the life time

experience means the company says that the tours offered by the company gives life time experience.

BUYER BEHAVIOUR: It deals with the behaviour of ultimate consumers who

buys goods and services for their personal consumption.

CULTURAL FACTORS:
CULTURE: India is a diverse country having different cultures. One culture is different from
other so people are attracted by other cultures of different places.

SOCIAL FACTORS:
FAMILY: Family relations can strongly affect the buyer behaviour. If one member of the
family lives in different place from the family, then the family is needed to visit he if the place is popular in tourism then automatically then they visit surrounding tourist spots.

ONLINE SOCIAL NETWORK: These are very popular now days blogs, social
networking websites are useful for exchanging information and sharing opinions

PERSONAL FACTORS:
INCOME LEVEL: The income level of buyer restricts him in buying the product/service
without making his own choice

OCCUPATION: Students and teachers are preferred for educational tours and different
professionals in visits different places according to their work needs.

BUYER DECISION PROCESS: It involves in five steps

1. NEED RECOGNISATION: Here the buyer recognises need for the product or service. 2. INFORMATION SEARCH: In this stage the customers search for the information about the product/service. 3. ALTERNATIVE EVALUATION: In this stage the buyer evaluate the alternative brands available in the market about the service he wants. 4. PURCHASE DECISION: Here the buyer decides about which brand to purchase. 5. POST PURCHASE BEHAVIOUR: This stage involves the further action taken by customers after purchase depending on their satisfaction and dissatisfaction.

LAUNCHING STATE: After doing research in south Indian states, I conclude that
Andhra Pradesh is the suitable place to launch the business of TOURS AND TRAVELS OF INDIA This state attracts nearly 153.1 million domestic tourists every year For every year it

attracts nearly 21% of the total domestic tourists in India(source: ministry of tourism, government of India). So by studying the above statistics we came to know that Andhra Pradesh is one of the important tourist places in southern India. The population of Andhra Pradesh is nearly 84 million (source: AP stats published on 2011). The customers are available for the company in that state. The major cities like Vijayawada, Vizag, Vishakapatnam are the places to start small boutiques of the company.

LEARNINGS AND FINDINGS:

Segmentation is the basic criteria for a company to concentrate on market. Positioning strategy gives a unique competitive advantage and strong customer value. A study on Micro and Macro Marketing environment factors gives a thorough knowledge about the functioning of the company.

CONCLUSION: I want to conclude that Andhra Pradesh is suitable state in south India
for launching business