A Study on Internal Perspective of
Marketing Strategies Implemented
by KTDC
Project report
submitted in partial ful?lment of the requirements for
the award of the Degree of
Master of Business Administration
of the University of Kerala
Submitted by:
Belli P K
DEPARTMENT OF BUSINESS ADMINISTRATION
COLLEGE OF ENGINEERING TRIVANDRUM
July 2013
DEPARTMENT OF BUSINESS ADMINISTRATION
College of Engineering Trivandrum
2013
CERTIFICATE
This is to certify that the report titled “A Study on Internal Per-
spective of Marketing Strategies Implemented by KTDC”
being submitted by Belli P K in partial ful?lment of the require-
ments for the award of the Degree of Master of Business Adminis-
tration, is a bona?de record of the project work done by Belli P K
at College of Engineering Trivandrum.
Dr. Chandramohan Dr. D Bijulal
Director Professor
Declaration
I undersigned, hereby declare that the project titled “A Study
on Internal Perspective of Marketing Strategies Implemented by KTDC”
submitted in partial ful?lment for the award of Degree of Master of
Business Administration of the University of Kerala is a bona?de
record of work done by me under the guidance of Dr. D Bijulal, De-
partment of Business Administration, College of Engineering Trivan-
drum. This report has not previously formed the basis for the award
of any degree, diploma, or similar title of any other university.
Belli P K
Acknowledgements
I wish to record my deep sense of gratitude and profound thanks to my
guide Dr D Bijulal, Professor, Department of Business Administration, College of
Engineering Trivandrum for his guidance and help through out the period of this
project work.
At this juncture I accord my deep sense of thanks and gratitude to Dr
Chandramohan, Director and HOD for his valuable direction enabling me to com-
plete this project.
I take this opportunity to express my sincere thanks to Mr Rajmohan G
S, Marketing manager, KTDC for giving me an opportunity to do the project in
their esteemed organisation.
I express my ultimate gratitude to God Almighty who has been an instru-
ment for enlightening me on academic venture.
Last but not the least I take this opportunity to thank my parents and
friends who helped me in making this endeavor a success.
Belli P K
i
Abstract
Marketing is often thought of only as promotion of products, especially
advertising and branding. However it has wider meaning which recognises that
it is customer centered. A review of the literature reveals that marketing strat-
egy is important for all company. Marketing strategy is a process that allows an
organisation to concenterate its resources on optimal opportunities with goal of
increasing sales and achieving suitable competitive advantage.The project work
is conducted in Kerala Tourism Development Corporation (KTDC) at Mascot
square, Trivandrum. KTDC uses a marketing strategy whose e?ectiveness is un-
certain. The primary objective of this study is to evaluate the marketing strategy
of KTDC from employees perspective. For the study a questionnaire was made
based on the variables like brand, market, messages, marketing channels, market-
ing tactics, marketing campaign, sales tools and website. From the study it is
found that KTDC uses a less e?ective marketing strategy which needs to be mod-
i?ed. The recommendations provided will give KTDC a framework for making
new marketing plan.
Keywords: marketing strategy, marketing strategy evaluation, management
perspective , KTDC marketing strategy.
ii
Contents
Page
List of Tables vii
List of Figures viii
1 Introduction 1
1.1 Background of the problem . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Industry pro?le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1 Tourism in India . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.2 Tourism in Kerala . . . . . . . . . . . . . . . . . . . . . . . . 5
1.3 Introduction to the company . . . . . . . . . . . . . . . . . . . . . . 7
1.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.2 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.3 Key objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.4 Brands and products . . . . . . . . . . . . . . . . . . . . . . 10
1.4 Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.4.1 Objectives of study . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.2 Research design . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.3 Sources of data . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.4 Statistical analysis tools used . . . . . . . . . . . . . . . . . 15
1.4.5 Period of study . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4.6 Hypothesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4.7 Scope of study . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.4.8 Limitation of study . . . . . . . . . . . . . . . . . . . . . . . 17
1.5 Chapterisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 Literature review 18
2.1 Marketing mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.2 Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 19
iii
2.2.1 Geographical segmentation . . . . . . . . . . . . . . . . . . . 19
2.2.2 Demographic segmentation . . . . . . . . . . . . . . . . . . . 20
2.2.3 Psychographic segmentation . . . . . . . . . . . . . . . . . . 20
2.2.4 Behavioral segmentation . . . . . . . . . . . . . . . . . . . . 20
2.3 Relationship marketing . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.4 Introduction to marketing strategy . . . . . . . . . . . . . . . . . . 21
2.5 Marketing strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.5.1 3 Cs of marketing strategy . . . . . . . . . . . . . . . . . . . 23
2.6 Strategic role of marketing . . . . . . . . . . . . . . . . . . . . . . . 23
2.7 Elements of marketing strategy . . . . . . . . . . . . . . . . . . . . 25
2.8 Types of marketing strategy . . . . . . . . . . . . . . . . . . . . . . 26
2.8.1 Position defense . . . . . . . . . . . . . . . . . . . . . . . . 26
2.8.2 Mobile defense . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.8.3 Flank position . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.4 Counter o?ensive . . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.5 Preemptive defense . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.6 Contraction defense . . . . . . . . . . . . . . . . . . . . . . . 27
2.9 Marketing strategy formulation . . . . . . . . . . . . . . . . . . . . 28
2.10 Marketing strategy implementation . . . . . . . . . . . . . . . . . . 29
2.10.1 Management involvement in strategy implementation . . . . 29
2.10.2 8S framework of strategy implementation . . . . . . . . . . . 30
2.11 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3 Data Collection and Analysis 33
3.1 Percentage Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.1.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . 34
3.1.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . 35
3.1.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . 36
3.1.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . 37
3.1.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . 38
3.1.6 About the clarity in communication . . . . . . . . . . . . . . 39
3.1.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . 40
3.1.8 Awareness about pro?table customers . . . . . . . . . . . . . 41
3.1.9 Awareness about customers changing buying behavior . . . . 42
3.1.10 Opinion on up-selling and cross selling . . . . . . . . . . . . 43
3.1.11 Key marketing messages that is consistently delivered in media 44
3.1.12 Experience customers have while interacting with employees 45
iv
3.1.13 Targeting of messages to speci?c market segments . . . . . 46
3.1.14 Opinion on shifting marketing to new channels . . . . . . . . 47
3.1.15 Opinion on maximizing the value . . . . . . . . . . . . . . . 48
3.1.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . 49
3.1.17 Integration of social media into traditional marketing . . . . 50
3.1.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . 51
3.1.19 Clarity of marketing materials used . . . . . . . . . . . . . . 52
3.1.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . 53
3.1.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . 54
3.1.22 Role of o?ers in the product value . . . . . . . . . . . . . . . 55
3.1.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . 56
3.1.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . 57
3.1.25 About the need of new tools . . . . . . . . . . . . . . . . . . 58
3.1.26 About the capturing of customer and prospect data . . . . . 59
3.1.27 About the compiling of email address . . . . . . . . . . . . . 60
3.1.28 About the website . . . . . . . . . . . . . . . . . . . . . . . 61
3.1.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.1.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . 63
3.2 Chi Square test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.2.1 Test of independence . . . . . . . . . . . . . . . . . . . . . . 64
3.2.2 Test of Goodness of Fit . . . . . . . . . . . . . . . . . . . . . 67
3.3 Correlation Coe?cient . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.4 Weighted Average Method . . . . . . . . . . . . . . . . . . . . . . . 71
4 Findings and Suggestions 73
4.1 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
4.1.1 Demographic pro?le . . . . . . . . . . . . . . . . . . . . . . 73
4.1.2 Findings related to marketing strategies . . . . . . . . . . . 73
4.2 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5 Conclusions 81
References 83
v
List of Tables
Table Page
1.1 Industry pro?le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . 34
3.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . . . . . 36
3.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . . . . . 37
3.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . 38
3.6 About the clarity in communication . . . . . . . . . . . . . . . . . . 39
3.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.8 Awareness about pro?table customers . . . . . . . . . . . . . . . . . 41
3.9 Awareness about customers changing buying behavior . . . . . . . . 42
3.10 Opinion on up-selling and cross selling . . . . . . . . . . . . . . . . 43
3.11 Key marketing messages that is consistently delivered in media . . . 44
3.12 Experience customers have while interacting with employees . . . . 45
3.13 Targeting of messages to speci?c market segments . . . . . . . . . . 46
3.14 Opinion on shifting marketing to new channels . . . . . . . . . . . . 47
3.15 Opinion on maximizing the value . . . . . . . . . . . . . . . . . . . 48
3.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . . . . . 49
3.17 Integration of social media into traditional marketing . . . . . . . . 50
3.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . . . . . 51
3.19 Clarity of marketing materials used . . . . . . . . . . . . . . . . . . 52
3.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.22 Role of o?ers in the product value . . . . . . . . . . . . . . . . . . . 55
3.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . . . . . 56
3.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . . . . . 57
3.25 About the need of new tools . . . . . . . . . . . . . . . . . . . . . . 58
3.26 About the capturing of customer and prospect data . . . . . . . . . 59
3.27 About the compiling of email address . . . . . . . . . . . . . . . . . 60
3.28 About the website . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . . . . . 63
3.31 Contingency Table . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.32 Observation Table for Hypothesi 1 . . . . . . . . . . . . . . . . . . . 65
3.33 Analysis Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
vi
3.34 ?
2
goodness-of-?t test for observed counts in variable . . . . . . . . 68
3.35 Observation Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.36 Attribute Response Table . . . . . . . . . . . . . . . . . . . . . . . 71
3.37 Weighted Average of Attributes . . . . . . . . . . . . . . . . . . . . 72
vii
List of Figures
Figure Page
3.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . 34
3.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . . . . . 36
3.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . . . . . 37
3.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . 38
3.6 About the clarity in communication . . . . . . . . . . . . . . . . . . 39
3.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.8 Awareness about pro?table customers . . . . . . . . . . . . . . . . . 41
3.9 Awareness about customers changing buying behavior . . . . . . . . 42
3.10 Opinion on up-selling and cross selling . . . . . . . . . . . . . . . . 43
3.11 Key marketing messages . . . . . . . . . . . . . . . . . . . . . . . . 44
3.12 Experience customers have while interacting with employees . . . . 45
3.13 Targeting of messages to speci?c market segments . . . . . . . . . . 46
3.14 Opinion on shifting marketing to new channels . . . . . . . . . . . . 47
3.15 Opinion on maximizing the value . . . . . . . . . . . . . . . . . . . 48
3.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . . . . . 49
3.17 Integration of social media into traditional marketing . . . . . . . . 50
3.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . . . . . 51
3.19 Clarity of marketing materials used . . . . . . . . . . . . . . . . . . 52
3.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.22 Role of o?ers in the product value . . . . . . . . . . . . . . . . . . . 55
3.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . . . . . 56
3.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . . . . . 57
3.25 About the need of new tools . . . . . . . . . . . . . . . . . . . . . . 58
3.26 About the capturing of customer and prospect data . . . . . . . . . 59
3.27 About the compiling of email address . . . . . . . . . . . . . . . . . 60
3.28 About the website . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . . . . . 63
3.31 Chart of observed and expected values . . . . . . . . . . . . . . . . 66
3.32 Chart of contribution to chi-square value by category . . . . . . . . 69
viii
Chapter 1
Introduction
There are numerous de?nitions for marketing and what constitutes a mar-
keting strategy. Often marketing is thought of only as the promotion of products,
especially advertising and branding. However, marketing has a wider meaning
which recognizes that it is customer centered. A marketing strategy is the busi-
ness approach to promote its products and services expressed in broad terms. A
marketing strategy, in turn, forms the basis of the marketing plan. The marketing
plan contains the set of speci?c activities required to successfully implement a
marketing strategy.
Marketing strategies serve as the fundamental underpinning of marketing
plans designed to ?ll market needs and reach marketing objectives. Plans and ob-
jectives are generally tested for measurable results. Commonly, marketing strate-
gies are developed as multi-year plans, with a tactical plan detailing speci?c actions
to be accomplished in the current year. Marketing strategies are dynamic and in-
teractive. They are partially planned and partially unplanned.
Marketing strategy involves careful scanning of the internal and external
environments. Internal environmental factors include the marketing mix, plus
performance analysis and strategic constraints. External environmental factors
include customer analysis, competitor analysis, target market analysis, as well
as evaluation of any elements of the technological, economic, cultural or politi-
cal/legal environment likely to impact success.
Once a thorough environmental scan is complete, a strategic plan can be
constructed to identify business alternatives, establish challenging goals, deter-
mine the optimal marketing mix to attain these goals, and detail implementation.
A ?nal step is to create a plan to monitor the progress and to set alternative plans
if a problem arises during the implementation of the plan.
1.1 Background of the problem
KTDC has been playing a key role in the development of infrastructure
facilities required by the rapidly growing tourist tra?c into the State of Kerala
and has been the prime mover in the progressive development, promotion and
expansion of tourism in the State. Apart from developing the largest hotel chain
in Kerala, KTDC o?ers tourism related facilities like conducted tours, boating,
tourist reception centers, centralized/online reservations, conventional services,
customized tour packages etc. KTDC uses marketing campaigns, brochures, so-
cial media marketing etc to market its products. KTDC also gives training to
employees so that a standardized service is given for its customers. This is done
as a part of internal marketing. KTDC uses a marketing strategy which is dis-
tinctive from its competitors. But how far the marketing strategy is e?ective is
uncertain. This project evaluates the e?cacy of marketing strategy of KTDC and
thereby suggesting a suitable marketing plan.
1.2 Industry pro?le
Tourism is considered as an agent of social change bridging gaps among
nations, regions and people and helping them to open up. It is a promoter of
development- material and spiritual both at macro and micro level. The World
Tourism Organization de?nes tourists as people traveling to and staying in places
outside their usual environment for not more than one consecutive year for leisure,
business and other purposes.
Table 1.1: Industry pro?le
Output per annum Increased 7 % per annum
Percentage in world market 6.5% share
Market Capitalization 6.23% of GDP
Tourism is important, and in some cases, vital for many countries. It was
recognized in the Manila Declaration on World Tourism of 1980 as an activity
essential to the life of nations because of its direct e?ects on the social, cultural,
2
educational, and economic sectors of national societies and on their international
relations. Tourism brings in large amounts of income in payment for goods and
services available, accounting for 30% of the world’s exports of services, and 6% of
overall exports of goods and services. It also creates opportunities for employment
in the service sector of the economy, associated with tourism. These service indus-
tries include transportation services, such as airlines, cruise ships, and taxicabs;
hospitality services, such as accommodations, including hotels and resorts; and
entertainment venues, such as amusement parks, casinos, shopping malls, music
venues, and theaters.
1.2.1 Tourism in India
India is the second-fastest growing tourism market in the world. Tourism
in India is the largest service industry contributing up to 6.23 per cent to the
National Gross Domestic Product (GDP) and providing 8.78 per cent of the total
employment opportunity in India. It is also the second largest sector in coun-
try providing employment opportunities for low skilled people. India’s travel and
tourism industry is one of the most pro?table industries in the country. It is also
credited with contributing a substantial amount of foreign exchange to the exche-
quer. Indian is a land of vast tourism opportunities as it is comprised of di?erent
cultures, traditions, festivals, and places of interest.
The country is one of the favorite tourist destinations around the world,
according to world travel and tourism Council (WTTC). Further, the Travel and
Tourism Competitiveness Report by World Economic Forum, has ranked India at
the sixth place in tourism and hospitality. India provides the facility to Tourists of
international origin to understand and experience cultural diversity of the country.
According to Indian o?cial estimates the tourism in India has outperformed the
global tourism industry in accordance with the growth, volume of foreign tourists
& even the revenue.
India witnesses about more than 5 million annual foreign tourist arrivals
and 562 million domestic tourism visits. Indian Tourism Industry generated about
US$100 billion in 2008 which is expected to increase to US$275.5 billion by 2018
at a 9.4% annual growth rate. The Campaign of ”Incredible India” is developed
by the Ministry of Tourism is used for the promotion of tourism in India.
3
Tourism products o?ered by India
1. Cruise tourism
2. Adventure tourism
3. Medical tourism
4. Wellness tourism
5. Golf tourism
6. Polo tourism
7. Meetings incentives conferences and exhibition
8. Film tourism
9. Eco tourism
Domestic media campaigns, international campaigns, national tourism awards,
international accolades, participation in travel fairs and exhibition, road shows,
food festivals, printing of brochures, outdoor publicity by advertising on taxis,
buses, trains, hoardings and billboards are some of the publicity and marketing
techniques adopted by Ministry of tourism, Government of India. Each state
further has its own publicity and marketing techniques. Eg: Kerala- Gods own
country campaign, Madhyapradesh- Hindusthan ki dil dekho campaign etc
Role of Ministry of Tourism
The Ministry of Tourism plays a crucial role in formulating national poli-
cies and programs as well as coordinating and supplementing the e?orts of the
State/Union Territory Governments and private sector in improving the quality
of tourism Industry. As regards the domestic market, the Ministry aims to popu-
larize the culture and natural beauty of di?erent regions, pilgrim sites and various
new tourism products.
The Ministry has a public sector undertaking namely the India Tourism
Development Corporation (ITDC) for carrying out its various functions, along
with the following autonomous institutions:-
1. Indian Institute of Tourism and Travel Management (IITTM)
2. National Institute of Water Sports (NIWS) has merged with IITTM
4
3. National Council for Hotel Management and Catering Technology (NCHMCT)
4. Institutes of Hotel Management (IHM)
The foreign direct investments (FDI) of Indian hotel and tourism industry
which contributes to the Indian economy in?ows are US$ 2.1 billion from April
2000 to March 2010, according to the Department of Industrial Policy and Promo-
tion (DIPP).Indian Export earnings from international visitors and tourism goods
are expected to generate US$ 51.4 billion (nominal terms) by 2019. Furthermore,
the sector which accounted for 6.4% of total employment in 2009 is estimated to
rise to 7.2% of total employment by 2019.
Tourism industry in India holds tremendous potential for India’s economy
which eventually provide impetus to other industries, create millions of new jobs
and generate enough wealth to help pay o? the international debt. This is the
main reason that today it is included that Tourism is amongst the Core Sectors
of the Indian Economy.
Indian Tourism Industry has got a major boost because of the booming IT
and outsourcing industry with increased number of business trips made by foreign-
ers to India, who will often add a weekend break or longer holiday to their trip.
They spend more time here in India than almost any other country worldwide.
1.2.2 Tourism in Kerala
Kerala state is considered as one of the ten paradises in the world. In more
ways than one, Kerala takes the credit for being the ?rst state in India to compre-
hend the signi?cance and importance of positioning and branding in the sphere of
tourism. From being a non entity in the mid 1980s, Kerala today has evolved into
an Indian tourisms superbrand and the countrys most premium holiday destina-
tion. Keralas worldwide success represents the triumph of vision, professionalism
and public private partnerships in the volatile and turbulent world of tourism.
Brief history
Kerala initiated tourism development programmes by establishing an in-
ternational beach resort at Kovalam in 1976 with the patronage of the central
government. Realizing the economic potentials, Government of Kerala declared
5
tourism as an industry in 1986. Within a short span of two and half decades, Ker-
ala succeeded in establishing its tourism brand in the international market. The
?rst tourism policy of the state was announced in 1995 underlining the importance
of Public Private Partnership.
Tourism has come a long way since then, capturing new markets with its
innovative products and marketing strategies. From hardly 50000 foreign tourist
arrivals and 0.13 billion rupees as foreign exchange in 1986, it has reached a status
of 0.6 million foreign tourist arrivals and 37.97 billion rupees as foreign exchange
in 2010. Total employment generated from tourism is estimated as 1.2 million.
Tourism development organisations
The ?agship of tourism industry in Kerala is Department of tourism, Gov-
ernment of Kerala. Kerala Tourism Development corporation (KTDC), Bekal Re-
sorts Development Corporation (BRDC), Tourists Resorts Kerala Ltd (TRKL),
District Tourism Promotion Council (DTPC), Kerala Institute of Travel and
Tourism Management Studies (KITTS), Kerala Institute of Hospitality Manage-
ment Studies (KIHMS), Thenmala EcoTourism Development Agency and a host
of Government Departments such as forest and wildlife, irrigation, museum, zoo
and archaeology are other important state sponsored institutions which play key
role in Tourism sector of Kerala. Besides there are numerous agencies working in
the semigovernment and private sectors for the promotion of Kerala Tourism.
Role of KTDC in tourism development
KTDC plays a prominent role in tourism sector of Kerala. Kerala had been
an unknown destination till 1980s. The aggressive marketing of KTDC laid foun-
dation for growth of tourism industry and transformed Kerala into one of niche
holiday destination. The tag line Kerala Gods own country used in its promotions
became a global super brand. Gods own country is perhaps the most powerful
positioning statement for an Indian destination.
Kerala started aggressive print campaign in the late 1980s. The turning
point however happened when National geographic Traveller, after expensive re-
search spanning two years, brought out a special issue on the 50 destinations of a
6
lifetime the only destination that featured from India was Kerala. The ?rst ever
television commercial done by tourism board in India, captured the magic of Ker-
ala and di?erentiated it from other states. Kerala also became the ?rst tourism
board in India to venture advertising on internet.
Tourist season of Kerala starts from September to May. Kerala is famous for
beaches, backwaters, mountain ranges, wildlife sanctuaries, hill stations, ayurveda,
culture, art forms, festivals etc. Kerala has also launched shopping festivals, the
?rst biennale in India, International coir fest etc as an innovative method to get
more publicity. State promotes ecologically sustained tourism, which focuses on
the local culture, wilderness adventures, volunteering and personal growth of the
local population. E?orts are taken to minimize the adverse e?ects of traditional
tourism on the natural environment, and enhance the cultural integrity of local
people.
Kerala has set an example for other Indian states by pursuing a visionary
approach in tourism; by pushing doors open rather than waiting for the doors to
open, by being truly authentic in the experience it o?ers, by building relationships
worldwide and by thinking globally and acting locally.
1.3 Introduction to the company
KTDC Hotels and Resorts Limited (KTDC) was incorporated on 29
December 1965 as a private limited company with its registered corporate o?ce
situated at Mascot square, Trivandrum. The initial name of the company was Ker-
ala Tourist and Handicrafts Corporation Private Limited. It was then changed as
Kerala Tourism Development Corporation Limited from 15 July 1970 and later as
KTDC Hotels and Resorts Limited from 07 October 2010 and now it is KTDC.
KTDC has been playing a key role in the development of infrastructure facilities
required by the rapidly growing tourist tra?c into the State of Kerala and has
been the prime mover in the progressive development, promotion and expansion
of tourism in the State. Apart from developing the largest hotel chain in Kerala,
KTDC o?ers tourism related facilities like conducted tours, boating, tourist re-
ception centers, centralized/online reservations, conventional services, customized
tour packages etc.
KTDC, the states premier destination developer, owns over 60 properties
7
ranging from luxury hotels to budget hotels and motels, Yatri Nivases and restau-
rants, KTDC aptly quali?es as the o?cial host to Gods own Country. The pre-
mium properties of this largest hotel chain in the state are located in the most
picturesque theme destinations of Kerala. KTDC also o?ers Ayurveda centres, cul-
tural entertainment and the best of Keralas cuisine at all its major establishments.
KTDC o?ers comprehensive holiday package Exclusive Escapades o?ers hol-
iday packages that are set in the premium properties of KTDC. As a pioneering
tourism development corporation, KTDC has also introduced innovative concepts
like insured holiday and rail holidays, which provide a complete Kerala package.
Kerala Tourism Development Corporation (KTDC) is the most successful
public sector undertaking The KTDC group of hotels has already stamped the
power in term of quality, marketing and hospitality. Even at the time of recession,
Kerala though showed a dim e?ect in the Kerala tourism ?eld but where far ahead
when compared to other state, KTDC too showed the growth and from then on
there was no look back. KTDC, the largest hotel chain which includes a range
of luxury and economy resorts, hotels, and motels located in the heart of some of
Keralas most acclaimed destinations.
The company aims to be the major player in development of tourism in-
frastructure in the state. It provides elegant accommodation and better quality
services in KTDC hotels and restaurants. It tries to achieve high levels of produc-
tivity of employees by better training, motivation and HRD techniques. It also
promotes ecofriendly and sustainable tourism and also tourism products. The
company primarily focuses on building up capacities to handle increasing ?ow of
tourists into Kerala in a planned manner.
The brands and products of the company include heritage hotels, premium
hotels, Tamarind easy hotels, motels, restaurants, central reservation centre, shop-
ping complex and water sports. Beer parlors are on lease basis. KTDC has 3
regional o?ces north Calicut, central Kochi and south Trivandrum.
1.3.1 Mission
To provide leadership and play a catalytic role in the development of tourism
infrastructure in the State and to achieve excellence in strategic business opera-
8
tions through professionalism, e?ciency, value for money and customer satisfac-
tion.
1.3.2 Vision
To make KTDC the o?cial host to Gods own country, the best service
provider in the hospitality industry with basic infrastructure and state-of-the-art
facilities, focusing on environment conservation and preservation, adding impetus
to local supplies and human resources and thereby positioning as a Premier PSU
in the hospitality sector in Kerala.
1.3.3 Key objectives
1) To be a major player in the development of tourism infrastructure in the
State.
2) To treat the tourists as our Guests (Adhidhi Devo Bhava) and ensure
customer delight by providing value for money.
3) To provide elegant accommodation and better quality services in KTDC
Hotels and Restaurants.
4) To function as an e?cient corporate house with improved productivity
levels and pro?t margins.
5) Achieve high levels of productivity of its employees by way of better
training, motivation and HRD techniques.
6) To empower the host population through responsible tourism.
7) To promote and market our products at National and International level
and thereby making Kerala as a premier Global tourism destination.
8) To promote sustainable and eco-friendly tourism in the state based on
the carrying capacity of the destinations.
9) To conserve, preserve the art, culture and heritage of the State.
9
10) To promote new innovative tourism products, lesser-known destinations.
11) To provide transport, entertainment, shopping, convention and recre-
ational services.
12) To render consultancy and managerial services in the hospitality indus-
try.
13) To undertake pioneering e?orts for destination development.
14) To play an active role in association with the State Tourism Depart-
ment/Directorate in conceptualizing and execution of tourism projects, publicity,
promotion and training.
1.3.4 Brands and products
Heritage Hotels
1. Lake Palace, Thekkady.
2. Bolgatty Palace, Kochi.
Premium Hotels
1. Mascot Hotel, Thiruvanathapuram.
2. Hotel Samudra, Kovalam.
3. Waterscapes, Kumarakom.
4. Aranya Nivas, Thekkady.
5. Tea County, Munnar.
6. Bolgatty Island Resort, Kochi.
7. Marina House, Kochi.
Budget Hotels
1. Hotel Chaithram,Thiruvananthapuram.
2. Periyar House, Thekkady.
3. Garden House, Malampuzha.
4. Nandanam, Guruvayoor.
5. Mangalya, Guruvayoor.
7. Pepper Grove, Sulthan Bathery.
10
8.Golden Peak, Ponmudi
Tamarind Easy Hotels
1. Tamarind Easy Hotel, Neyyardam.
2. Tamarind Easy Hotel, Kollam.
3. Tamarind Easy Hotel, Changanasery.
4. Tamarind Easy Hotel, Alappuzha.
5 Tamarind Easy Hotel, Peermade.
6. Tamarind Easy Hotel, Thrissur.
7. Tamarind Easy Hotel, Guruvayoor.
8. Tamarind Easy Hotel, Mannarkadu.
9 . Tamarind Easy Hotel, Nilambur.
10. Tamarind Easy Hotel, Kondotty.
11. Tamarind Easy Hotel, Thirunelly.
12. Tamarind Easy Hotel, Kannur.
13. Tamarind Easy Hotel, Parasinikkadavu
Motels
1. Motel Araam, Kottarakkara.
2. Motel Araam, Palaruvi.
3. Motel Araam, Punalur.
4. Motel Araam, Kayamkulam.
5. Motel Araam, Alappuzha.
6. Motel Araam, Vaikom.
7. Motel Araam, Athirappally.
8. Motel Araam, Erumayur.
9. Motel Araam, Vadakara.
10. Motel Araam, Kuttipuram.
11. Motel Araam, Kannur.
Restaurants
1. KTDC Restaurant, Veli, Thiruvananthapuram.
2. KTDC Restaurant, Museum, Thiruvananthapuram.
3. Anantha Restaurant, New Delhi.
Others
1. Central Reservation Centre,Thiruvananthapuram.
11
2. Tourist Reception Centre,Thiruvananthapuram.
3. Tourist reception Centre, Ernakulam.
5. Shopping Complex, Shanmugam Road, Ernakulam.
6. Watersports, Veli.
Others on lease basis
Budget Hotel
1. Malabar Mansion, Kozhikode.
Restaurant & Beer Parlours
1. Karamana, Thiruvananthapuram.
2. Peyad, Thiruvananthapuram.
3. Statue, Thiruvananthapuram.
4. Balaramapuram.
5. Kazhakuttam.
6. Varkala.
7. Attingal.
8. Harippad.
9. Karukachal
10. Muvattupuzha.
11. Kanjikode, Palakkad.
12. Kozhinjampara, Palakkad.
13. Ramanattukara.
14. Changaramkulam.
15. Koyilandy.
16. Payyannur.
17. Kanhangad, Kazarcode.
18. Kannur.
1.4 Research methodology
While conducting a research there are two ways of approaching the same.
They are
1) Qualitative research method
12
2) Quantitative research method.
Quantitative research method
Quantitative research method emphasizes quanti?cation in the collection
and analysis of the information. The aim is to gather numerical evidence where
conclusions can be drawn from or they can be used to test hypotheses. In order to
get reliable results it is necessary to study relatively large sample group and use
a computer to analyze the collected information. The information is derived from
questionnaire surveys, secondary sources and from observation involving counts.
Qualitative research method
Qualitative research method on the contrary does not involve numerical
data but emphasizes words rather than numbers. This method uses only a small
sample group; the primary information is gathered from a small number of people.
The information gathered cannot usually be presented in numerical form. This
research method is used when a full understanding of the sample group is required.
The information is derived from observation, informal and in-depth interviewing
and participant observation.
A description of research plan for the present study is discussed as under:
A study on internal perspective of marketing strategies implemented by KTDC
was conducted at KTDC situated in Trivandrum and the study covers the mar-
keting department which has a major role in designing and executing marketing
strategies. The means of collecting data is through secondary and primary data
collection methods.
Primary data was collected from the organisation through personnel visit,
questionnaire, interviews and discussions with important executives and sta? mem-
bers of various departments. The variables used in the questionnaire includes
brand, market, messages, marketing channels, marketing tactics, creative ap-
proches, o?ers, sales tools and website.This helped to give an overall view of mar-
keting activities carried out in KTDC. The secondary data have been obtained
from company website, brochures etc.The brief history of KTDc, its functions,
products o?ered and strategic intent of company was obtained from company
website.
13
1.4.1 Objectives of study
KTDC uses a marketing strategy to di?erentiate it from its competitors,
but how far it is e?ective is uncertain. The objective of the study are . . .
1. To evaluate the marketing strategy of KTDC
2. To ?nd out the marketing policy adopted by KTDC
3. To examine the marketing policy related to promotional activities of KTDC
4. To ?nd out the threat involved in marketing policy of KTDC
5. To suggest suitable marketing policy
1.4.2 Research design
A research design is a master plan, which speci?es various methods and pro-
cedure for collecting and analysing the needed information. Descriptive research
design is followed.
Sample size : 50
Sampling method: Simple random sampling
Sampling unit: Managers and o?cers of various departments in KTDC
Nature of data: Primary & secondary data
Place of study: KTDC hotels & resorts Ltd, Trivandrum
1.4.3 Sources of data
The sources of data include primary and secondary.
Primary data
The primary data was collected by means of a survey. Questionnaires were
prepared and given to executives and sta?s of various departments. The ques-
tionnaire contains 25 questions which covers various aspects of marketing strategy
like brand, market, messages, marketing channels, marketing tactics, creative ap-
proaches, o?ers, sales tools, data and website. The response of the sample was
recorded on a grade scale of strongly agree, agree, neutral, disagree and strongly
disagree for each question. The ?lled up information was later analyzed to obtain
the interpretations and the ?ndings.
14
Secondary data
The data was collected from websites, journals, reference books, company
records and brochures.
1.4.4 Statistical analysis tools used
The various statistical tools used for the analysis and interpretation of the
data are
1) Percentage analysis
2) Chi square test
3) Correlation analysis
4) Weighted average method.
1.4.5 Period of study
The study was conducted over a period of one month from 11 March 2013
to 11 April 2013.
1.4.6 Hypothesis
Hypothesis 1
H0: There is no signi?cant di?erence between the e?ciency of marketing
channels and marketing strategies of KTDC
H1: There is signi?cant di?erence between the e?ciency of marketing chan-
nels and marketing strategies of KTDC
Hypothesis 2
H0: There is no signi?cant di?erence between gender and opinion about
marketing strategies of KTDC
15
H1: There is signi?cant di?erence between gender and opinion about mar-
keting strategies of KTDC
Hypothesis 3
H0: There is no signi?cant di?erence between marketing tools and market-
ing strategies adopted by KTDC
H1: There is signi?cant di?erence between marketing tools and marketing
strategies adopted by KTDC
Hypothesis 4
H0: There is no association between the opinion about integrating social
media into traditional marketing tactics like direct mail and advertising
H1: There is association between the opinion about integrating social me-
dia into traditional marketing tactics like direct mail and advertising
Hypothesis 5
H0: There is no association between the opinion that sales tools are inte-
grated with brand and marketing campaigns
H1: There is association between the opinion that sales tools are integrated
with brand and marketing campaigns
1.4.7 Scope of study
In every company, the preparation of a marketing plan is vital for moni-
toring and tracking of the companys marketing strategies for a certain product or
service. The marketing plan helps to monitor the progress of marketing strategy
that is being implemented. Analysis of marketing strategy helps to ?nd out ma-
jor competitors, which would enable the ?rm to o?er its appropriately designed
marketing mix and thereby achieving ?rms objective. A well de?ned marketing
strategy can clearly describe which market segments to serve and which to ex-
clude, what product to serve and what not to serve. So the marketing strategy
have vital role in the success of an organisation.
16
KTDC has a signi?cant role in the growth of Kerala tourism industry by
formulating e?ective marketing strategies. This study will evaluate the marketing
strategies implemented in KTDC, to ?nd out the various marketing policies used
by them, to know its e?ectiveness and to suggest suitable policy for the company.
1.4.8 Limitation of study
1.The time frame given for the study is limited.
2.The study is based on qualitative analysis and hence results may be bi-
ased.
3.Detailed information about the company was not be provided, in order
to keep secrecy of company policies
1.5 Chapterisation
Chapter 1 discuss about the background of problem, industry pro?le, com-
pany pro?le, research objectives, research methodology, scope and limitation of
study. Chapter 2 gives in depth information about the literature reviewed for the
study. In Chapter 2 the topics discussed include marketing, marketing mix, mar-
keting segmentation, relationship marketing, marketing strategy, strategic role of
marketing, elements of marketing strategy, types of marketing strategy, marketing
strategy formulation and marketing strategy implementation. Chapter 3 presents
the data collection and analysis. The statistical tools used include Chi square,
Percentage analysis, Correlation coe?cient and Weighted average method. Chap-
ter 4 presents the ?ndings and suggestions of the study. Chapter 5 gives a brief
conclusion of the project.
17
Chapter 2
Literature review
Marketing is often thought to be only selling and advertising. However,
marketing consists of many other functions that can be seen far more important
than just the exchange of goods (Kotler, 1997).
The American Marketing Association de?nes marketing as follows: Market-
ing is the activity, set of institutions, and processes for creating, communicating,
delivering and exchanging o?erings that have value for customers, clients, partners
and society at large.
Today, more than ever, marketing has put emphasis on satisfying the cus-
tomer needs. The customer tends to make decisions on buying a product or a
service based on their perception of the value and satisfaction that the product or
service delivers. From the companys point of view the goal of marketing is to ?rst
build and then manage pro?table customer relationships. In order to achieve this
it is not enough only to ?rst market the product and then sell it but make sure
that the product being sold will meet the standards and be enough to ful?ll the
customers expectations. Therefore the company must be aware and understand
their customers; their needs, wants and demands. That is why many companies
put a lot of e?ort and money into making di?erent kinds of customer surveys ana-
lyzing their customers behavior and learning about the di?erent way of delivering
the superior customer value and satisfaction(Kotler, 1997)
2.1 Marketing mix
The marketing mix is one of the major concepts in modern marketing and
is often brought up in general discussions of marketing. Marketing mix is a set
of marketing tools that a company uses to pursue its marketing objectives in the
target market. When a company is making decisions on marketing they generally
fall into four controllable categories known as the 4 Ps: product, price, place and
promotion(Kotler, 1997).
2.2 Market segmentation
In marketing it is almost impossible to succeed by handling all the con-
sumers as a big one size ?ts for all mass. Market segmentation recognizes that
people di?er in many ways like in their needs, attitudes and lifestyles. Through
market segmentation companies divide their market into smaller segments. All of
the segments have speci?c needs and by dividing the market those needs can be
met more e?ciently with products and services that match their unique needs.
Choosing the right target market is essential and often not that easy. When
de?ning a target market for a product there should be three separate levels. The
?rst level consists of consumers that are willing to buy and who also have the best
premises to buy. The second level consists of consumers who have the premises to
buy but not necessarily the desire. The third level consists of consumers who are
not able to buy but who should be monitored in case there is a change in their
buying readiness (Kotler, 1997).
There are many ways to segment a market. Di?erent segmentation variables
are used, both alone and together, in order to classify consumers into di?erent
segments. Kotler de?nes four major variables that are generally used in marketing;
geographic, demographic, psychographic and behavioral variables.
2.2.1 Geographical segmentation
Geographical segmentation divides the market into di?erent geographical
units such as cities, regions, countries or climate and population density. By this
way when a company is deciding which units to operate and market, they can pay
19
attention to geographical di?erences in needs and wants. For example a major
clothing store chain can pay attention to their selection in stores in northern areas
where it is colder and the need for warmer clothes is greater than in areas located
more south(Kotler, 1997)
2.2.2 Demographic segmentation
Demographic segmentation consists of dividing the market into groups
based on variables such as age, gender, family size, income, occupation, educa-
tion, religion, race and nationality. Demographic factors are the most popular
bases for segmenting customer groups. This is partly because customer wants are
closely linked to variables such as income and age. Also, for practical reasons,
there is often much more data available to help with the demographic segmenta-
tion process (Kotler, 1997).
2.2.3 Psychographic segmentation
Psychographic segmentation divides the market into di?erent groups based
on social class, lifestyle or personality characteristics. People can be in the same
geographical segment meaning that they may for example live in the same city;
they can even be of same age. But one may be a student and another a worker.
This a?ects their lifestyles greatly and therefore also has an e?ect on the buying
behaviors of the people (Kotler, 1997).
2.2.4 Behavioral segmentation
Behavioral segmentation divides buyers into groups based on their knowl-
edge, attitudes, uses and responses to a product. Behavioral segmentation has the
advantage of using variables that are closely related to the product itself. When a
company knows when and why customers are buying their products, they can link
their marketing to that. For example some holidays like on Valentines Day or at
Christmas people tend to buy certain things related to the occasion; many compa-
nies prepare special o?ers and advertisements for those holiday occasions.(Kotler,
1997)
20
2.3 Relationship marketing
Relationship marketing is a form of marketing that emphasizes customer
retention and satisfaction. It switches the focus from the recruitment of new
customer to the retention and recovery of existing ones. Relationship marketing
di?ers from other forms of marketing in that it recognizes the long-term value of
customer relationships and extends communication. The world of marketing today
is more customer-centered. As companies must compete in a more competitive
marketplace they have to know their customers? needs and wants in order to get
new customers, then keep and grow them by delivering greater value for them
(Piercy and Nigel, 2000)
When planning g a relationship marketing strategy one must take into
account that not all customers want a relationship with the company. That is
why it must be carefully considered which types of customers are usually more
likely to repeat their visit in a hotel or a restaurant. Some customers are aware
of the wide choice of competitor products and services and do not want to limit
their options and tie themselves only to one company but prefer to switch their
custom accordingly. Other customers are not interested in any type of relationship
with any company; they simply look at the best quality, value and convenience
available at the time of purchase (Davis, 2007).
2.4 Introduction to marketing strategy
Marketing strategy includes all basic and long-term activities in the ?eld of
marketing. It deals with the analysis of the strategic initial situation of a company,
the formulation, evaluation and selection of market-oriented strategies. Therefore
it contributes to the goals of the company and its marketing objectives.
Strategic planning is a process of developing and maintaining a link between
the organizations goals and capabilities and its changing marketing opportunities.
The marketing strategy is shaped by the overall business goals meaning that it
broadly explains what actions are required to achieve the goals and objectives.
The marketing strategy can be thought of as a game plan that outlines, often in
a list form factors such as the target market, positioning, distribution channels,
price, advertising and possible research and development.
21
2.5 Marketing strategy
According to (Kotler, 1997) The marketing strategy is the way in which the
marketing function organises its activities to achieve a pro?table growth in sales
at a marketing mix level.
A marketing strategy may be de?ned as a plan (usually long term) to achieve the
organisations objectives as follows...
a) By specifying what resources should be allocated to marketing.
b) By specifying how these resources should be used to take advantage of
opportunities which are expected to arise in the future.
A marketing strategy would consist of the following:
a. Identifying markets and customers needs in those markets.
b. Planning products which will satisfy the needs of these markets.
c. Organising marketing resources , so as to match products with customers
in the most e?cient and e?ective way possible, ie, so as to maximise customer sat-
isfaction and the organisations pro?ts or sales revenue (or whatever its objectives
are at the same time).
Choosing the right target market is essential and often not that easy. When
de?ning a target market for a product there should be three separate levels. The
?rst level consists of consumers that are willing to buy and who also have the best
premises to buy. The second level consists of consumers who have the premises to
buy but not necessarily the desire. The third level consists of consumers who are
not able to buy but who should be monitored in case there is a change in their
buying readiness (Kotler, 1997).
Positioning is the act of designing the companys o?ering so that the services
and products are based on some core idea or bene?t. Its meaning is to create a
competitive angle toward the competitors so the positioning of a product can be
based for example on the best or quickest service, accessibility or a?ordability.
This way the product occupies a clear, distinctive and desirable place relative to
competing products in the minds of the target customers.
22
Marketing strategy is mainly indicated by the marketing objectives, cus-
tomer and competitive perspectives and product/market momentum ( i.e. ex-
trapolation of past performance to the future). This forms the basis of marketing
strategy. Marketing strategy is developed at the business unit level (Kotler, 1997).
2.5.1 3 Cs of marketing strategy
Within a given environment, marketing strategy deals essentially with the
interplay of three forces known as the strategic 3 Cs namely the Customer, the
Competition and the Corporation (Davis, 2007).
A good marketing strategy should be characterized by
a) clear market de?nition
b) a good match between corporate strengths and the needs of the market
c) superior performance, relative to the competition, in the key success factors of
the business.
Marketing strategy, in terms of these key constituents, must be de?ned as
an endeavour by a corporation to di?erentiate itself positively from its competitors,
using its relative corporate strengths to better satisfy customer needs in a given
environmental setting.
Based on the interplay of the strategic three Cs, formation of marketing strategy
requires the following 3 decisions:
1. Where to compete. (de?nition of the market). One or various segments.
2. How to compete, that is, it requires a means for competing .
3. When to compete, that is, it requires timing of market entry (Lambin
and Jean-Jacques, 2000).
2.6 Strategic role of marketing
In its strategic role, marketing focuses on a business intentions in a market
and the means and timing of realizing those intentions. The strategic role of mar-
23
keting is quite di?erent from marketing management which deals with developing,
implementing and directing programs to achieve designated intentions. To clearly
di?erentiate between marketing management and marketing in its new role , a
term strategic marketing. has been coined to represent the latter (Gale et al.,
1980).
Strategic marketing is seen as a process consisting of: analyzing environ-
mental, market competitive and business factors a?ecting the corporation and its
business units, identifying market opportunities and threats and forecasting future
trends in business areas of interest for the enterprise , and participating in setting
objectives and formulating corporate and business unit strategies. It also includes
selecting market target strategies for the product markets in each business unit,
establishing marketing objectives as well as developing , implementing and man-
aging the marketing program positioning strategies in order to meet market target
needs. (Gale et al., 1980)
Strategic marketing means looking at the whole of a companys portfolio of
products and markets, and managing the portfolio to achieve the companys overall
goals (Jain and Girish, 1993) Although de?nitions for the term vary, (Hamper and
Baugh, 1990) de?ne marketing strategy as a consistent, appropriate and feasible
set of principles through which a particular company hopes to achieve its longrun
customer and pro?t objectives in a particular competitive environment.
The primary purpose of a marketing strategy is to e?ectively allocate and
coordinate marketing resources and activities to accomplish the ?rms objectives
within a speci?c product market. Therefore decisions about the scope of a mar-
keting strategy involve specifying the target market segment(s) to be pursued and
the product line to be o?ered. Then, ?rms seek a competitive advantage and syn-
ergy, planning a well integrated program of marketing mix elements (Boyd et al.,
1998).
Marketing strategy creates pathways to a desirable future. The output from
such marketing strategy analysis and choice (or strategic marketing decision ) is
a marketing strategy statement.
The strategic analysis of marketing makes reference to the future situation
of products and markets,(Prahalad et al., 2004), that is to say that it tries to guide
24
the company by the correct path and where the company should be in the future.
It is also important to de?ne clearly what should be interpreted for product and
for markets and this is important because marketing strategies are open to inter-
pretations (Piercy and Nigel, 2000). Traditional de?nitions can be broken by new
variables that contribute to rede?ne markets and products. These variables can
be technology, Internet, changing consumers attitudes, social changes, etc..
The term marketing strategy re?ects the companys best opinion as to how
it can most pro?tably apply its skills and resources to the marketplace. It is in-
evitable broad in scope. Marketing strategies are the means by which a company
achieves its marketing objectives and are usually concerned with the 4 p’s. (Mc-
donald, 1999).
2.7 Elements of marketing strategy
A marketing strategy is made of several interrelated elements. The ?rst
and most important is market selection which is directly related to choosing the
markets to be served(Brown and Sommers, 1982). Product planning includes the
speci?c products the company sells, the makeup of the product line, and the de-
sign of individual o?erings in the line. Another element is the distribution system:
the wholesale and retail channels through which the product moves to the people
who ultimately buy it and use it. The overall communications strategy, employs
advertising to tell potential customers about the product trough radio, television,
direct mail, and public print and personal selling to deploy a sales force to call
on potential customers, urge them to buy, and take orders. Finally , pricing, is
an important element of any marketing program and is one of the most directed
marketing elements in the creation of value for shareholders (Doyle, 2000). The
company must set the product prices that di?erent classes of customers will pay
and determine the margins or commissions to compensate agents, wholesalers ,
and retailers for moving to product to ultimate users.
The External, market orientation must be kept in mind since the compa-
nies are guided to the market in a regular way. Reliable data in the strategic
analysis has bigger possibilities of success and bigger chances of optimizing their
results.(Aaker, 2004)
Other issues to take into consideration and which in?uence in marketing
25
strategies are: the understanding of growth markets and Market Share, managing
international realities, implicating empirical research, utilization of methodological
developments, for example, portfolio models, experience curves, scenario analysis,
market structure analysis and technological forecasting; and ?nally getting into
interdisciplinary developments, including marketing, organizational behaviour, ?-
nance and accounting, economics, strategy. (Aaker, 2004)
2.8 Types of marketing strategy
(Sahaf, 1993) has mentioned six strategies that can help a leader attain the
objective of market share protection. They are
2.8.1 Position defense
In this strategy a leader attempts to protect its existing market share
through forti?cation wherein the leader erects barriers around him to stop com-
petitors. The barrier can be in the form of a ?rms distinctive skills capabilities
and marketing assets that not only have greater signi?cance for the customers but
also are di?cult for the competitors to copy.
2.8.2 Mobile defense
This involves constantly shifting resources and developing new strategies
and tactics. A mobile defense is intended to create a moving target that is hard to
successfully attack, while simultaneously, equipping the defender with a ?exible
response mechanism should an attack occur. In business this would entail intro-
ducing new products, introducing replacement products, modifying existing prod-
ucts, changing market segments, changing target markets, repositioning products,
or changing promotional focus. This defense requires a very ?exible organization
with strong marketing, entrepreneurial, product development, and marketing re-
search skills.
26
2.8.3 Flank position
This involves the redeployment of your resources to deter a ?anking attack.
You protect against potential loss of market share in a segment, by strengthen-
ing your competitive position in this segment with new products and other tactics.
2.8.4 Counter o?ensive
Counter o?ensive defense refers to the response of a market leader to a
real attack by a competitor. In fact, these defensive calls for a leader to respond
to a competitors head on attack by identifying the attackers weakness and then
launch a counter attack. Generally a leader actively responds to any move of his
competitors. An e?ective counterattack is to invade the attackers main territory
so that it will have to pull back some troops to defend the territory. Generally
countero?ensive defense works when the attacker has become vulnerable as a re-
sult of the over stretching of resources.
2.8.5 Preemptive defense
A preemptive defense strategy demands to attack potential aggressor before
he starts his o?ence. By pursuing preemptive defense strategy a ?rm intends to
convey let it be known how it will retaliate. Thus such a strategy aims to create a
threat which will prevent any potential challenger from attacking in the ?rst place.
In business the preemptive defense can involve an actual attack on the competition
or merely signalling an intention to ?ght on a particular front and a willingness to
commit the necessary resources to defend against aggression. Product or brand
proliferation is a form of preemptive defense.
2.8.6 Contraction defense
A contraction defense, or strategic withdrawal, requires giving up unten-
able ground to reduce over stretching on the core business which can be defended
against attack. In fact, such a strategy calls for a withdrawal from the most vul-
nerable segments and redirect resources to those that are more defendable.
27
2.9 Marketing strategy formulation
A company should not only know own company but also the behavior of
the competitors potential and the capacity to add and remove it in products,
segments, markets, distribution channels, etc. From my point of view one of the
clearest indicators that a company thinks, and it acts with mentality of strategic
marketing it is the level of depth that makes of its competitors.(Alexander, 1985)
(Bantel, 1997) suggests that particular product/market strategies are ef-
fective at achieving particular performance goals to the exclusion of others. The
synergies between strategy types and implementation capabilities exist and should
be exploited.Creating marketing synergy means that you have a marketing plan
where each element of your plan complements another. The total e?ect achieved
is greater than the sum of the individual e?ects. Synergy creates greater power
and energizes company’s marketing e?orts.
According to (Hrebiniak, 2006)) formulating a consistent strategy is a di?-
cult task for any Management team and making that strategy work (implementing
it throughout the Organization) is even more di?cult. he also pointed out that
managers know more about developing a strategy than they do about executing
it. One of the basic problems he quote is that managers are trained to plan, not
execute plans. Another problem is that some top level managers believe strategy
implementation is below them’, something best left to lower level managers.
According to (Noble, 1999), a myriad of factors can potentially a?ect the
process by which strategic plans are turned into organizational action. Unlike
strategy formulation, strategy implementation is often seen as something of a
craft, rather than a science, and its research history has previously been described
as fragmented and eclectic. Leadership, and speci?cally strategic leadership, is
widely described as one of the key drivers of e?ective strategy implementation.
However, a lack of leadership, and speci?cally strategic leadership by the top
management of the organisation, has been identi?ed as one of the major barriers
to e?ective strategy implementation. Strategic leadership is de?ned as the lead-
ers ability to anticipate, envision, and maintain ?exibility and to empower others
to create strategic change as necessary. Strategic leadership is multi functional,
involves managing through others, and helps organisations cope with change that
seems to be increasing exponentially in todays globalised business environment.
28
2.10 Marketing strategy implementation
Great strategies are worth nothing if they cannot be implemented . Strat-
egy implementation is important but di?cult because implementation activities
take a longer time frame than formulation, involves more people and greater task
complexity, and has a need for sequential and simultaneous thinking on part of
implementation managers. Strategy formulation and implementation are comple-
mentary and logically distinguishable areas of strategic management and part of
the overall process of planning executing and adapting.
Good implementation naturally starts with good strategic input: the soup
is only as good as the ingredients.Whether a strategy itself is consistent and ?t-
ting or not is a key question for successful strategy implementation, but even a
consistent strategy cannot be all things to all people. Strategy programs need
to be expanded to focus on the implementation process. More attention should
be given to breaking down lofty statements into practical, actionable, measurable
activities. The language and methods used to implement need to be simpli?ed,
and consistently deployed. Success in implementation is critical to validating the
investment in strategy in the ?rst place. (Allio, 2005)
2.10.1 Management involvement in strategy implementa-
tion
(Heracleous, 2000) also ?nds that if middle management do not think the
strategy is the right one, or do not feel that they have the requisite skills to imple-
ment it, then they are likely to sabotage its implementation. He refers to groups
within the organization who will inevitably disagree with the strategy. These
groups may sabotage strategy implementation by deliberate actions or inactions,
if implementing the strategy may reduce their power and in?uence. Thus, Herba-
ceous also sees the perceived ability and perceived consistency between personal
goals and the strategic change goals as the decisive soft factor.
(Waldersee and Sheather, 1996) believe that the approach of matching strat-
egy and managers style ignores the causal role of the organizational context or the
29
interaction of personality and context on implementation actions. It is widely
accepted that di?erent strategies need to be implemented in di?erent ways. Their
study demonstrates, at least in a laboratory setting, that strategy plays a signi?-
cant role in shaping managers intentions. Managers can alter their behaviours to
suit di?erent strategy situation.
(Kim and Mauborgne, 1991) point out that subsidiary top managers want
an open process, that is consistent and fair, and that allows for their input to be
heard. In the presence of a so called due (or open) process, subsidiary managers
are motivated to implement global strategies. They feel a strong sense of organi-
zational commitment, trust in head o?ce management, and social harmony with
their head o?ce counterparts. In the absence of such a due and fair process, the
e?ect may be the opposite from the intended one.
(Chimhanzi, 2005) suggests that cross unit working relationships have a key
role to play in the successful implementation of marketing decisions. Implementa-
tion e?ectiveness is a?ected negatively by con?ict and positively by communica-
tion and speci?cally, interpersonal, not written. In turn, these interdepartmental
dynamics are a?ected by senior management support, joint reward systems, and
informal integration.
Firms devoting attention to the alignment of marketing and human re-
sources are able to realize signi?cantly greater successes in their strategy imple-
mentation. Speci?cally, these ?ndings imply that marketing managers should
seek to improve the relationship with their HR colleagues by emphasizing two of
the process based dimensions: joint reward systems and written communication.
(Chimhanzi, 2005)
2.10.2 8S framework of strategy implementation
(Higgins, 2005) sets up an 8s framework of strategy implementation, includ-
ing strategy and purposes structure, resources, shared values, style, sta?, systems
and processes, and strategic performance. The 8s of strategy execution is an ap-
proach that enables senior management to enact, monitor, and assess the cross
functional execution of strategies. The 8s of strategy execution are a revision of
the original McKinsey 7s model. Higgins has deleted skills from the McKinsey
30
framework and he has added resources in their place. He also added strategic
performance in order to help focus the strategy execution process. As always, if
there isnt a good match or alignment among these factors, performance in strategy
implementation will su?er.
According to (Jain, 2009): System approach can be de?ned as, A set of
objects together with the relationships among them and their attributes. System
approach emphasis on the interrelations and interconnections among the com-
ponents of a marketing system in which product, services, money, equipment,
information etc, ?ow from marketers to customer. These ?ows largely determine
the survival and growth of a ?rm. Therefore the focus of system approach is on the
analysis of the marketing ?ows and communication from markers to the customers.
2.11 Summary
From this chapter we get a brief idea about all topics discussed in the same.
Marketing is important wing of any company. marketing mix help to design an
e?ective product. Market segmentation help to identify the target customers. Re-
lationship marketing mainly focus on building relationship between company and
customers. For all entities mentioned here needs an e?ective marketing strategy.
Marketing strategy is a process that can allow an organization to concen-
trate its resources on the optimal opportunities with the goals of increasing sales
and achieving a sustainable competitive advantage. Marketing strategy includes
all basic and longterm activities in the ?eld of marketing that deal with the anal-
ysis of the strategic initial situation of a company and the formulation, evaluation
and selection of market oriented strategies and therefore contributes to the goals
of the company and its marketing objectives.
A good marketing strategy also de?nes the reason why it is unique or com-
pelling to buyers. It should explain what is the bene?t the consumer gets by
purchasing the companys product. It should explain why the customer would
want to buy that particular product from the company and not go to some com-
petitor instead.
Marketing strategy creates pathways to a desirable future. The output from
31
such marketing strategy analysis and choice (or strategic marketing decision) is a
marketing strategy statement. There are several elements of marketing strategy
which is crucial for its formulation, implementation and evaluation. Even though
there are di?erent types of marketing strategy, choosing the best one is vital for
the company.
32
Chapter 3
Data Collection and Analysis
This chapter presents the data collection and analysis.The methodology de-
scribed in Chapter 1 provided the baseline for data gathering. The presentation of
data is systematically linked to the format of self developed questionnaire attached
in the appendix. Descriptive and inferential statistics such as frequencies, tables,
percentage and correlation tests were used in the data analysis and summaries.
Relationships between variables were identi?ed using frequencies, Chi square and
correlation.
The tools used for statistical analysis are
1) Percentage analysis
2) Chi square test
3) Correlation coe?cient
4) Weighted average method
3.1 Percentage Analysis
Percentage analysis is the method to represent raw streams of data as a
percentage (a part in 100 - percent) for better understanding of collected data.
Table 3.1: Gender wise classi?cation
Gender No of respondents Percentage
Male 36 72%
Female 14 28%
Figure 3.1: Gender wise classi?cation
3.1.1 Gender wise classi?cation
Analysis
It can be seen from the table. 3.1 as well as from the ?gure. 3.1 that out of
50 respondents 72% are male and 28% are females.
Inference
Out of 50 respondents 72% are male. Majority of the respondents of the
study are males.
34
3.1.2 Age wise classi?cation
Table 3.2: Age wise classi?cation
age No of respondents Percentage
20-30 4 8%
31-40 28 56%
41& above 18 36%
Figure 3.2: Age wise classi?cation
Analysis
It can be seen from the Table 3.2 as well as from the above Fig. 3.2 that
out of 50 respondents 8% of the respondents have the age between 20 and30 and
56% of them were aged between 31 and 40. Remaining 36% have age more than
41.
Inference
56% of the respondents have age between 31 and 40. Majority of the re-
spondents are in the age group of 31 and 40.
35
3.1.3 Quali?cation wise classi?cation
Table 3.3: Quali?cation wise classi?cation
Quali?cation No of respondents Percentage
Plus two 2 4%
Degree 30 60%
Technical 6 12%
PG 12 24%
Figure 3.3: Quali?cation wise classi?cation
Analysis
It can be analyzed from the Table 3.3 out of 50 respondents 4% of the
respondents have the quali?cation of plus two and 60% of them are graduates.
12% of them were technically quali?ed and remaining 24% are post graduates.
Inference
Majority of the respondents are graduates.
36
3.1.4 Experience wise classi?cation
Table 3.4: Experience wise classi?cation
Experience No of respondents Percentage
Below 1 year 1 2%
1-5 years 11 22%
6-10 years 16 32%
Above 10 years 22 44%
Figure 3.4: Experience wise classi?cation
Analysis
It can be analyzed from the Table 3.4 that 2% of the respondents have an
experience of below 1 year in the organization. 22% of them have an experience
between 1 to 5 years and 32% of them have an experience of 6 to 10 years. 44%
of the employees have an experience of more than 10 years.
Inference
44% of the employees have an experience of more than 10 years. This
indicates that majority of the KTDC executives are more experienced.
37
3.1.5 Income wise classi?cation
Table 3.5: Income wise classi?cation
Income No of respondents Percentage
5000-10000 2 4%
10001-20000 18 36%
20001-30000 17 34%
Above 30000 13 26%
Figure 3.5: Income wise classi?cation
Analysis
It can be seen from the Table 3.5 as well as from the above Fig. 3.5 that
out of 50 respondents 4% of the respondents have an income between 5000 and
10000 and 36% of them have an income between 10001 and 20000. 34% earns
between 20001 and 30000 it can be seen that 26% of them earn more than 30001
as their income.
Inference
Majority of the respondents have an income between 10001 and 20000.
38
3.1.6 About the clarity in communication
Table 3.6: About the clarity in communication
Response No of respondents Percentage
Strongly agree 12 24
Agree 18 36
Neutral 2 4
Disagree 14 28
Strongly disagree 4 8
Figure 3.6: About the clarity in communication
Analysis
As from the Table 3.6 it can be seen that 24% of the respondents strongly
agree that their brand clearly communicates what they are about and conveys the
highest value which they deliver. 36% of them agree with the same. Here only
4% of the respondents became neutral. 28% of the respondents disagree and 8%
of the respondents strongly disagree with the same. According to them the brand
does not clearly communicates what they are about and conveys the highest value
they deliver.
Inference
36% of the respondents agree that their brand clearly communicates what
they are about and conveys the highest values they deliver. This indicates that
the brand used by KTDC conveys the intended message.
39
3.1.7 Usage of brand identity
Table 3.7: Usage of brand identity
Response No of respondents Percentage
Strongly agree 10 20
Agree 27 54
Neutral 2 4
Disagree 9 18
Strongly disagree 2 4
Figure 3.7: Usage of brand identity
Analysis
As from the Table 3.7 it can be seen that 20% of the respondents strongly
agree that their brand identity is being used in all media. 54% of the respondents
agree with it. Here only 4% of the respondents became neutral. 18% of the
respondents disagree and 8% of the respondents strongly disagree that their brand
identity is not being used in all media.
Inference
54% of the respondents agree that their brand identity is being popularly
used in all media. This indicates that brand messages used are consistently deliv-
ered in all media and thereby creating a popular brand identity.
40
3.1.8 Awareness about pro?table customers
Table 3.8: Awareness about pro?table customers
Response No of respondents Percentage
Strongly agree 24 48
Agree 12 24
Neutral 1 2
Disagree 8 16
Strongly disagree 5 10
Figure 3.8: Awareness about pro?table customers
Analysis
From the Table 3.8 it is seen that 48% of the executives and managers
strongly agreed to the statement that they know their most pro?table customers
and they are targeting prospects that look like their best customers. 24% also
accords to the same. While 16% disagreed to the statement and 10% strongly
disagrees to the same.
Inference
KTDC is fully aware about its most pro?table customers and they are
targeting such customers and prospects. This shows that KTDC is aware about
its pro?table customers and by targeting such customers, KTDC is increasing its
pro?t.
41
3.1.9 Awareness about customers changing buying behav-
ior
Table 3.9: Awareness about customers changing buying behavior
Response No of respondents Percentage
Strongly agree 6 12
Agree 21 42
Neutral 7 14
Disagree 8 16
Strongly disagree 8 16
Figure 3.9: Awareness about customers changing buying behavior
Analysis
42% agreed to the statement that they are aware about customers changing
buying behavior. 12% strongly agrees to it, 16% disagrees to the statement and
another 16% strongly disagree to the same.
Inference
Majority of the sta?s know that customers have changed the way they
?nd, buy or use KTDCs services and KTDC has adjusted the marketing plan
accordingly. This shows that KTDC changes its marketing plan based on customer
buying behavior.
42
3.1.10 Opinion on up-selling and cross selling
Table 3.10: Opinion on up-selling and cross selling
Response No of respondents Percentage
Strongly agree 5 10
Agree 31 62
Neutral 3 6
Disagree 7 14
Strongly disagree 4 8
Figure 3.10: Opinion on up-selling and cross selling
Analysis
From the Table 3.10 it is seen that 62% of the sta?s agreed to the state-
ment that they are actively up-selling and cross selling services to their current
customers. 14% disagrees to it while 10% strongly agrees to the statement. 8%
strongly disagrees to it.
Inference
Majority of the sta?s agrees to the statement which shows that the sales
tools and marketing plan adopted are very well supporting the sales activity.
KTDC has got active sales agents who enhances the up-selling and cross selling
activity.
43
3.1.11 Key marketing messages that is consistently deliv-
ered in media
Table 3.11: Key marketing messages that is consistently delivered in media
Response No of respondents Percentage
Strongly agree 7 14
Agree 21 42
Neutral 10 20
Disagree 7 14
Strongly disagree 5 10
Figure 3.11: Key marketing messages
Analysis
From the Table 3.11 it is seen that 42% of sta?s agreed to the statement
that they have key marketing messages that they are consistently delivering in all
media. 14% strongly agrees to the statement and an equal number disagrees to it.
10% strongly disagrees to the statement. 20% remained neutral to the statement.
Inference
KTDC have key marketing messages that they are consistently delivering
in all media. This ensures wider reach and visibility to the brand, o?ers, services
etc
44
3.1.12 Experience customers have while interacting with
employees
Table 3.12: Experience customers have while interacting with employees
Response No of respondents Percentage
Strongly agree 17 34
Agree 15 30
Neutral 2 4
Disagree 10 20
Strongly disagree 6 12
Figure 3.12: Experience customers have while interacting with employees
Analysis
Table 3.12 shows that 34% of the employees strongly agreed to the state-
ment that the messages delivered in all media matches the experience customers
have when they interact with KTDCs sta?. 30% agreed to it while an equal
number disagreed to the same. Only 12% strongly disagreed to the statement.
Inference
The experience customers have while interacting with the employees matches
with the key messages that is being delivered in all media. The sta?s of KTDC
are well trained and customer friendly. Training given to employees by KTDC
ensures that a standardized service is given to all customers.
45
3.1.13 Targeting of messages to speci?c market segments
Table 3.13: Targeting of messages to speci?c market segments
Response No of respondents Percentage
Strongly agree 12 24
Agree 18 36
Neutral 4 8
Disagree 10 20
Strongly disagree 6 12
Figure 3.13: Targeting of messages to speci?c market segments
Analysis
From the Table 3.13 it is seen that 36% of the employees agreed to the
statement that they are tailoring messages to speci?c market segments when they
have an opportunity to do so. 24% strongly agreed to it, while 20% disagreed
to the statement. 12% strongly disagreed to the statement while 8% remained
neutral about the same.
Inference
Majority of the employees agreed to the statement that they are tailoring
messages to speci?c to market segments when they have an opportunity to do so.
This means marketing tactics used are ?exible.
46
3.1.14 Opinion on shifting marketing to new channels
Table 3.14: Opinion on shifting marketing to new channels
Response No of respondents Percentage
Strongly agree 18 36
Agree 22 44
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.14: Opinion on shifting marketing to new channels
Analysis
As from the Table 3.14 it can be seen that 36% of the respondents strongly
agree that it is time to shift some or more of their marketing to new channels
such as social media and mobile marketing. 44% of them agree with the same.
Here only 2% of the respondents became neutral. 16% of the respondents disagree
with this and it 2% of the respondents strongly disagree that it is time to shift
some or more of their marketing to new channels such as social media and mobile
marketing.
Inference
36% of the respondents agree that it is time to shift some or more of their
marketing to new channels such as social media and mobile marketing. This shows
that KTDC has realized the importance of new marketing channels and they are
in phase to shift to some of their marketing to new channels.
47
3.1.15 Opinion on maximizing the value
Table 3.15: Opinion on maximizing the value
Response No of respondents Percentage
Strongly agree 5 10
Agree 29 58
Neutral 2 4
Disagree 9 18
Strongly disagree 5 10
Figure 3.15: Opinion on maximizing the value
Analysis
As from the Table 3.15 it can be seen that 10% of the respondents strongly
agree that they are maximizing the value of the proprietary channels they control,
such as newsletters, invoices, product packaging and inserts, vehicles and build-
ings. 58% of them agree with the same. Here only 4% of the respondents became
neutral. 18% of the respondents disagree and 10% of the respondents strongly
disagree with this.
Inference
58% of the respondents agree that they are maximizing the value of the
proprietary channels they control, such as newsletters, invoices, product packaging
and inserts, vehicles and buildings. KTDC has got several marketing tools and
they are utilizing it e?ectively.
48
3.1.16 Opinion on marketing tactics
Table 3.16: Opinion on marketing tactics
Response No of respondents Percentage
Strongly agree 18 36
Agree 20 40
Neutral 1 2
Disagree 9 18
Strongly disagree 2 4
Figure 3.16: Opinion on marketing tactics
Analysis
It can be seen from the Table 3.16, that 36% of the respondents strongly
agree that the marketing tactics are generating the best results- leads, conversions
or sales at the lowest cost.40% of them agree with the same. Here only 2% of
the respondents became neutral. 18% of the respondents disagree and 4% of the
respondents strongly disagree with this.
Inference
36% of the respondents agree that the marketing tactics are generating the
best results- leads, conversions or sales at the lowest cost. This indicates that the
marketing tactics used is very e?ective.
49
3.1.17 Integration of social media into traditional market-
ing
Table 3.17: Integration of social media into traditional marketing
Response No of respondents Percentage
Strongly agree 21 42
Agree 20 40
Neutral 1 2
Disagree 4 8
Strongly disagree 4 8
Figure 3.17: Integration of social media into traditional marketing
Analysis
From the Table 3.17 it can be seen that 42% of the respondents strongly
agree that they are integrating social media into traditional marketing tactics like
direct mail and advertising. 40% of them agree with the same. Here only 2% of
the respondents became neutral. 8% of the respondents disagree and 8% of the
respondents strongly disagree with this.
Inference
42% of the respondents agree that they are integrating social media into
traditional marketing tactics like direct mail and advertising. This shows that
KTDC understands the importance of social media in marketing its products and
they are integrating the same into traditional marketing tactics like direct mail
and advertising.
50
3.1.18 Opinion on creativity used
Table 3.18: Opinion on creativity used
Response No of respondents Percentage
Strongly agree 13 26
Agree 27 54
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.18: Opinion on creativity used
Analysis
From the above it can be seen that 26% of the respondents strongly agree
that their creative is attention getting and it stands out in a crowded market place.
54% of them agree with the same. Only 2% of the respondents became neutral.
16% of the respondents disagree and 2% of the respondents strongly disagree with
this.
Inference
54% of the respondents agree that their creative is attention getting and it
stands out in a crowded market place. The creative designs or features used in ads,
brochure etc are attention getting and it is unique which makes it to di?erentiate
from its competitors.
51
3.1.19 Clarity of marketing materials used
Table 3.19: Clarity of marketing materials used
Response No of respondents Percentage
Strongly agree 15 30
Agree 17 34
Neutral 5 10
Disagree 9 18
Strongly disagree 4 8
Figure 3.19: Clarity of marketing materials used
Analysis
As from the above it can be seen that 30% of the respondents strongly agree
that their call to action is loud and clear and their prospects know exactly what
to do next after reviewing their marketing materials. 36% of them agree with
the same. Here 10% of the respondents became neutral. 18% of the respondents
disagree and 8% of the respondents strongly disagree with this.
Inference
36% of the respondents agree that their call to action is loud and clear.
Their prospects know exactly what to do next after reviewing their marketing
materials. This indicates that messages conveyed in marketing material are ap-
propriate and very clear.
52
3.1.20 Resonance of o?ers
Table 3.20: Resonance of o?ers
Response No of respondents Percentage
Strongly agree 25 50
Agree 20 40
Neutral 0 0
Disagree 4 8
Strongly disagree 1 2
Figure 3.20: Resonance of o?ers
Analysis
As from the above it can be seen that 50% of the respondents strongly agree
that their o?er is resonating with prospects and more and more people saying yes.
40% of them agree with the same. Here none of the respondents became neutral.
8% of the respondents disagree and 2% of the respondents strongly disagree with
this.
Inference
50% of the respondents strongly agree that their o?er is resonating with
prospects and more and more people are saying yes. The o?ers are made based
on the customer buying behavior and they are e?ective.
53
3.1.21 E?ectiveness of o?ers
Table 3.21: E?ectiveness of o?ers
Response No of respondents Percentage
Strongly agree 8 16
Agree 32 64
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.21: E?ectiveness of o?ers
Analysis
As from the above it can be seen that 16% of the respondents strongly agree
that their o?ers showcase their products, 64% of them agree with this. Here only
2% of the respondents became neutral. 16% of the respondents disagree that their
o?ers showcase their products and remaining 2% exhibit a strong disagreement
regarding this.
Inference
64% of the respondents agree that their o?ers showcase their products. The
brochures, ads and other marketing materials used showcases di?erent products of
KTDC. These are consistently delivered in all media which ensures that marketing
messages delivered are same.
54
3.1.22 Role of o?ers in the product value
Table 3.22: Role of o?ers in the product value
Response No of respondents Percentage
Strongly agree 8 16
Agree 28 56
Neutral 2 4
Disagree 7 14
Strongly disagree 5 10
Figure 3.22: Role of o?ers in the product value
Analysis
As from the above it can be seen that 16% of the respondents strongly agree
that their o?er delivers real value to the prospect. 56% of them agree with this.
Here only 4% of the respondents became neutral. 14% of the respondents disagree
and 10% of the respondents strongly disagree that their o?er delivers real value
to the prospect.
Inference
56% of the respondents agree that their o?er delivers real value to the
prospect. The o?ers made are based on the buying behavior of customer and they
are e?ective.
55
3.1.23 Sales brochure attributes
Table 3.23: Sales brochure attributes
Response No of respondents Percentage
Strongly agree 13 26
Agree 29 58
Neutral 2 4
Disagree 3 6
Strongly disagree 3 6
Figure 3.23: Sales brochure attributes
Analysis
It can be seen from the above that 26% of the respondents strongly agree
that their sales brochures displays and sales demonstration tools are accurate,
complete and up to date. 58% of them agree with this. Here only 4% of the
respondents became neutral. 6% disagrees to the statement and an equal number
strongly disagree to the same
Inference
58% of the respondents agree that their sales brochures displays and sales
demonstration tools are accurate, complete and up to date.
56
3.1.24 Integration of sales tools
Table 3.24: Integration of sales tools
Response No of respondents Percentage
Strongly agree 19 38
Agree 12 24
Neutral 8 16
Disagree 7 14
Strongly disagree 4 8
Figure 3.24: Integration of sales tools
Analysis
As from the above it can be seen that 38% of the respondents strongly agree
that their sales tools are integrated with their brand and marketing campaigns.24%
of them agree with the same. Here 16% of the respondents became neutral. 14%
of the respondents disagree and 8% of the respondents strongly disagree with this.
Inference
38% of the respondents strongly agree that their sales tools are integrated
with their brand and their marketing campaigns. This indicates that marketing
strategy is made by inter connecting marketing elements.
57
3.1.25 About the need of new tools
Table 3.25: About the need of new tools
Response No of respondents Percentage
Strongly agree 10 20
Agree 25 50
Neutral 2 4
Disagree 10 20
Strongly disagree 3 6
Figure 3.25: About the need of new tools
Analysis
As from the above it can be seen that 20% of the respondents strongly agree
that they need new tools to educate prospects about their industry or products.
50% of them agree with the same. Here only 4% of the respondents became
neutral. 20% of the respondents disagree and 6% of the respondents strongly
disagree with this.
Inference
50% of the respondents agree that they need new tools to educate prospects
about their industry or products. New tools can be used to increase brand visibility
and also to increase awareness about the products among customers.
58
3.1.26 About the capturing of customer and prospect data
Table 3.26: About the capturing of customer and prospect data
Response No of respondents Percentage
Strongly agree 9 18
Agree 18 36
Neutral 4 8
Disagree 12 24
Strongly disagree 7 14
Figure 3.26: About the capturing of customer and prospect data
Analysis
As from the above it can be seen that 18% of the respondents strongly agree
that they are capturing customer and prospect data to build a robust marketing
database. 36% of them agree with the same. Here 8% of the respondents became
neutral. 24% of the respondents disagree and 14% of the respondents strongly
disagree with this.
Inference
36% of the respondents agree that they are capturing customer and prospect
data to build a robust marketing database. This indicates that KTDC uses rela-
tionship marketing to retain customers.
59
3.1.27 About the compiling of email address
Table 3.27: About the compiling of email address
Response No of respondents Percentage
Strongly agree 13 26
Agree 30 60
Neutral 3 6
Disagree 2 4
Strongly disagree 2 4
Figure 3.27: About the compiling of email address
Analysis
As from the above it can be seen that 26% of the respondents strongly agree
that they are compiling email address for an ongoing sales dialogue. 60% of them
agree with the same. Here 6% of the respondents became neutral. 4% strongly
disagreed to it and an equal number disagreed to the same.
Inference
60% of the respondents agree that they are compiling email address for an
ongoing sales dialogue. This indicates that KTDC is using relationship marketing
to retain customers.
60
3.1.28 About the website
Table 3.28: About the website
Response No of respondents Percentage
Strongly agree 17 34
Agree 18 36
Neutral 1 2
Disagree 10 20
Strongly disagree 4 8
Figure 3.28: About the website
Analysis
As from the above it can be seen that 34% of the respondents strongly agree
that their website is build around the needs and interest of its visitors. 36% of
them agree with the same. Here only 2% of the respondents became neutral. 20%
of the respondents disagree and 8% of the respondents strongly disagree with this.
Inference
36% of the respondents agree that their website is build around the needs
and interest of its visitors. KTDC has build its website in such a way that required
informations are easily accessible for the visitors.
61
3.1.29 SEO of website
Table 3.29: SEO of website
Response No of respondents Percentage
Strongly agree 13 26
Agree 15 30
Neutral 4 8
Disagree 13 26
Strongly disagree 5 10
Figure 3.29: SEO of website
Analysis
30% of the employees agreed that the KTDCs site is fully optimized for
search engines. 26% strongly agreed to the statement and an equal number dis-
agreed to the same. 10% strongly disagreed to it and 8% remained neutral.
Inference
Majority of the employees agrees that KTDCs site is fully optimized for
search engines. This shows that KTDC has given importance for internet market-
ing.
62
3.1.30 Focusing of marketing campaigns
Table 3.30: Focusing of marketing campaigns
Response No of respondents Percentage
Strongly agree 11 22
Agree 19 38
Neutral 2 4
Disagree 10 20
Strongly disagree 8 16
Figure 3.30: Focusing of marketing campaigns
Analysis
As from the above it can be seen that 22% of the respondents strongly agree
that they are understand the factors buyer consider when selecting their product
or service and they are focusing their marketing campaigns on those factors. 38%
of them agree with this. Here only 4% of the respondents became neutral. 20% of
the respondents disagree and 16% of the respondents strongly disagree with this.
Inference
38% of the respondents agree that they are understand the factors buyer
consider when selecting their product or service and they are focusing their mar-
keting campaigns on those factors. This shows that KTDC caters to the needs of
customers.
63
3.2 Chi Square test
The Chi-Square distribution is merely the distribution of the sum of the
squares of a set of normally distributed random variables. Its value stems from
the fact that the sum of random variables from any distribution can be closely
approximated by a normal distribution as the sum includes a greater and greater
number of samples. Thus the test is widely applicable for all distributions.
The chi- square test is one of the simplest and most widely used non-
parametric test in statistical work. The symbol ? is the Greek letter Chi. The chi
square test was ?rst used by Karl Pearson in the year 1990. The quantity of ?
2
describes the magnitude of the discrepancy between theory and observation. It is
de?ned where O refers to the observed frequencies and E refers to the expected
frequencies.
3.2.1 Test of independence
With the help of chi-square test we can ?nd out whether two or more at-
tributes are associated or not. In order to test whether or not the attributes are
associated, we take the null hypothesis that there is no association in the attributes
under study or, in other words , the attributes are independent.
Table 3.31: Contingency Table
Response SA A N D SD Total
Strongly agree 4 5 1 2 0 12
Agree 15.42 26 2 6.58 2 52
Neutral 4.5 4 0 1.5 3 13
Disagree 0 5 2 6 1 14
Strongly Disagree 2 2 1 2.16 1.84 9
Total 25.92 42 6 18.24 7.84 100
In the Table 3.31
SA= Strongly Agree
A= Agree
N= Neutral
D= Disagree
SD= Strongly Disagree
64
The response given vertically in the Table 3.31 refers to that of marketing
channel and response given horizontally in the Table 3.31 refers to that of mar-
keting strategies.
Hypothesis 1
Ho: There is no signi?cant di?erence between e?ciency of marketing chan-
nel and marketing strategies.
H1: There is signi?cant di?erence between e?ciency of marketing channel
and marketing strategies
Table 3.32: Observation Table for Hypothesi 1
OBSERVED EXPECTED (O-E) (O ?E)
2
CHI-CONTRIBUTION
4 3.11 0.89 0.7921 0.254695
5 5.04 -0.04 0.0016 0.000317
1 0.72 0.28 0.0784 0.108889
2 2.188 -0.188 0.035344 0.016154
0 0.94 -0.94 0.8836 0.94
15.42 13.478 1.942 3.771364 0.279816
26 21.84 4.16 17.3056 0.792381
2 3.12 -1.12 1.2544 0.402051
6.58 9.48 -2.9 8.41 0.887131
2 4.076 -2.076 4.309776 1.057354
4.5 3.36 1.14 1.2996 0.386786
4 5.46 -1.46 2.1316 0.390403
0 0.78 -0.78 0.6084 0.78
1.5 2.37 -0.87 0.7569 0.319367
3 1.02 1.98 3.9204 3.843529
0 3.62 -3.62 13.1044 3.62
5 5.88 -0.88 0.7744 0.131701
2 0.84 1.16 1.3456 1.601905
6 2.55 3.45 11.9025 4.667647
1 1.09 -0.09 0.0081 0.007431
2 2.33 -0.33 0.1089 0.046738
2 3.78 -1.78 3.1684 0.838201
1 0.54 0.46 0.2116 0.391852
2.16 1.61 0.55 0.3025 0.187888
1.84 0.705 1.135 1.288225 1.82727
23.77951
65
Calculated Chi- Square value from the table 3.32 is 23.77951
Degree of freedom = (r-1) (c-1) = (5-1) (5-1) = 16
Table value of Chi square for 4 degree of freedom at 5% level of signi?cance
= 24.996
Inference
When tested at 5% level of signi?cance it is found that the table value
is higher than the calculated value. So null hypothesis is accepted. Hence it is
concluded that there is no signi?cant di?erence between e?ciency of marketing
channel and marketing strategies.
Figure 3.31: Chart of observed and expected values
Hypothesis 2
Ho: There is no signi?cant di?erence between gender and opinion about
marketing strategy.
H1: There is signi?cant di?erence between gender and opinion about mar-
keting strategy.
Observed and expected value for testing the current hypothesis can be re-
ferred from Table 3.33
66
Table 3.33: Analysis Table
Observed Expected (O-E) (O ?E)
2
Chi-contribution
16.4 18.66 -2.26 5.1076 0.273719
29 30.24 -1.24 1.5376 0.050847
4 4.32 -0.32 0.1024 0.023704
16.76 13.132 3.628 13.162384 1.002314
5.84 5.64 0.2 0.04 0.007092
9.52 7.25 2.27 5.1529 0.710745
13 11.76 1.24 1.5376 0.130748
2 1.68 0.32 0.1024 0.060952
1.48 5.1 -3.62 13.1044 2.56949
2 2.192 -0.192 0.036864 4.829611
9.659222
Chi- Square value calculated from the Table 3.33 is 9.659222
Degree of freedom =(r-1) (c-1) =(2-1) (5-1) = 4
Table value ?
2
for 4 degree of freedom at 5% level of signi?cance = 9.488
Inference
When tested at 5% level of signi?cance it is found that the table value is
less than the calculated value. So null hypothesis is rejected. Hence it is concluded
that there is signi?cant di?erence between gender and opinion about marketing
strategy.
3.2.2 Test of Goodness of Fit
Chi- Square test enables us to see how well the assumed theoretical distri-
bution ?ts to the observed data. When some theoretical distribution ?tted to the
given data, we are always interested in knowing as to how well this distribution
?t with the observed data. The Chi- Square test can give answer to this. If the
calculated value of Chi- Square is less than the table value at a certain level of sig-
ni?cance, the ?t is considered to be a good one which means that the divergence
between the observed and expected frequencies is attributable to ?uctuation of
sampling. But if the calculated value of ?
2
is greater than its table value, the ?t
is not considered to be good one.
67
Hypothesis 3
H0: There is goodness-of-?t between the opinion about integration of social
Media into traditional marketing tactics like direct mail and advertisement.
H1: There is no goodness-of-?t between the opinion about integration of
social Media into traditional marketing tactics like direct mail and advertisement.
Refer Figure 3.31 for this hypothesis testing.
Table 3.34: ?
2
goodness-of-?t test for observed counts in variable
Category Observed Test proportion Expected ?-contribution
1 21 0.2 10 12.1
2 20 0.2 10 10
3 1 0.2 10 8.1
4 7 0.2 10 0.9
5 1 0.2 10 8.1
N=50 39.2
Degree of freedom = (n-1) = (5-1) = 4
Chi-Square value obtained from the Table 3.34 is 39.2
p- value 0.000
Table value ?
2
for 4 degree of freedom at 5% level of signi?cance = 9.488
Inference
When tested at 5% level of signi?cance it is found that the table value is
less than the calculated value. So null hypothesis is rejected.
Hence it is concluded that there is no goodness-of-?t between the opinion
about integration of rural Media into traditional marketing tactics like direct mail
and advertisement
68
Figure 3.32: Chart of contribution to chi-square value by category
3.3 Correlation Coe?cient
In statistics, dependence refers to any statistical relationship between two
random variables or two sets of data. Correlation refers to any of a broad class of
statistical relationships involving dependence.
The most familiar measure of dependence between two quantities is the
Pearson product-moment correlation coe?cient, or ”Pearson’s correlation coe?-
cient”, commonly called simply ”the correlation coe?cient”. It is obtained by
dividing the covariance of the two variables by the product of their standard de-
viations.
Correlation coe?cient is an algebraic method of measuring correlation. Un-
der this method, we measure correlation by ?nding a value known as the coe?cient
of correlation using an appropriate formula. Correlation coe?cient is a numerical
value. It shows the degree or the extent of correlation between two variables.
Hypothesis 4
Ho: There is no association between opinion about sales tools are integrated
with brand and marketing strategies
H1: There is association between opinion about sales tools are integrated
with brand and marketing strategies
69
Refer Table 3.35 for this hypothesis testing.
In the Table 3.35
x= Sales tools
y= Marketing Strategies.
Table 3.35: Observation Table
Response x y xy x
2
y
2
Strongly agree 19 25.92 492.48 361 671.8464
Agree 12 42 504 144 1764
Neutral 8 6 48 64 36
Disagree 7 18.24 127.68 49 332.6976
Strongly Disagree 4 7.84 31.36 16 61.4656
Total 50 100 1203.52 634 2866.01
Inference
It can be seen that the calculated coe?cient of correlation is 0.597438687.
Hence we accept the null hypothesis. There is no association between opinion
about sales tools are integrated with brand and marketing strategies.
70
3.4 Weighted Average Method
Weighted average is an average in which each quantity to be averaged is
assigned a weight. These weightings determine the relative importance of each
quantity on the average. Weightings are the equivalent of having that many like
items with the same value involved in the average.
In this study we have taken four factors whose prime importance have to
be understood. The factors considered are communication, marketing channel,
search engine and marketing campaign. By using weighted average method the
ranking of factors is done.
Table 3.36: Attribute Response Table
Sl.No Attributes x1 x2 x3 x4 Total
1 Strongly agree 24 10 20 38 92
2 Agree 36 58 30 24 148
3 Neutral 4 4 16 16 40
4 Disagree 28 18 26 14 86
5 Strongly Disagree 8 10 8 8 34
Total 100 100 100 100 400
In the Table 3.36
x
1
= Communication,
x
2
= Marketing channel,
x
3
= Search engine,
x
4
= Marketing campaign.
Formula for weighted average method is
Weighted average = Wx/W
W = Number of respondents
x = Rating given by the respondents.
71
Based on the formula Table 3.37 is tabulated.
Table 3.37: Weighted Average of Attributes
x W x
1
Wx
1
x
2
Wx
2
x
3
Wx
3
x
4
Wx
4
1 5 24 120 10 50 20 100 38 190
2 4 36 144 58 232 30 120 24 96
3 3 4 12 4 16 16 48 16 48
4 2 28 56 18 36 26 52 14 28
5 1 8 8 10 10 8 8 8 8
Total 100 340 100 344 100 328 100 370
Inference
From the table 3.37, it is found that combined weighted average of attributes
i.e, communication, marketing channel, search engine and marketing campaign
are 3.4, 3.44, 3.28 and 3.7 respectively. Hence marketing campaign is ranked 1st,
marketing channel is ranked 2nd , communication ranked 3rd, and search engine
ranked 4th. This analysis shows that marketing campaign is the pivotal entity of
marketing strategies.
72
Chapter 4
Findings and Suggestions
This chapter presents the ?ndings and suggestions. The major ?ndings
derived from data analysis and interpretation are presented here. The suggestions
discussed here will provide a framework for KTDC to develop a new marketing
plan.
4.1 Findings
On analysis, the following trends and pro?les were noted.
4.1.1 Demographic pro?le
• 72% of the respondents are males.
• 60% of the respondents are graduates.
• 56% of the respondents are aged between 31 and 40.
• 44% of the respondents have more than 10 years of experience.
• 36% of the respondents earn between 10001 and 20000.
4.1.2 Findings related to marketing strategies
• 36% of the respondents agree that their brand clearly communicates what
they are and conveys the highest value they deliver. This indicates that the
brand used by KTDC conveys the intended message.
• 54% of the respondents agree that KTDCs brand identity is being popularly
used in all media. The major medias used by KTDC are Travel magazines,
brochures, television commercials, internet (social media, websites, other
travel forums) etc
• KTDC is fully aware about its most pro?table customers and they are target-
ing such customers and prospects. This shows that KTDC is aware about its
pro?table customers and by targeting such customers, KTDC is increasing
its pro?t.
• 42% of the respondents agree that the customers changed the way ?nd, buy,
or use KTDCs product or service and they have adjusted their marketing
plan accordingly. The Internet has changed everything. Population with
Internet access use it to decide where to travel, where to live, where to work
or where to establish a business. Hence KTDC considers internet as their
major marketing priority.
• 62% of the respondents agree that they are actively up selling and cross sell-
ing products and services to their current customers. eg:- The tourists vis-
iting Kovalam gets brochure about Thenmala Eco Tourism, Bolgatti Palace
and other tourists attraction in Kerala. Here there is active cross selling of
products.
• 42% of the respondents agree that they have three to ?ve key marketing
messages that they are consistently delivered in all media. KTDC mainly
showcases the location, facilities provided and other related items. These
are consistently delivered in all media.
• 34% of the respondents strongly agree that their marketing messages match
the experience customers have when they interact with their sta?. The
training given to the employees ensures that they deliver a standardized
service to all customers.
• 36% of the respondents agree that they are tailoring messages to speci?c
segments when they have the opportunity to do so. This means marketing
tactics used are ?exible. KTDC has got di?erent products and each caters
to a speci?c market segment. eg: Premium Hotels for upper class customers,
Tamarind Easy Hotels for middle class customers etc.
74
• 36% of the respondents agree that it is time to shift some or more of their
marketing to new channels such as social media and mobile marketing. Pop-
ulation which has access to internet use the same for almost all activities.
Whether it be a job, a place to travel or anything, they rely on internet.
Social media has now become a platform for discussing and sharing the
travel experience. So it became necessary to shift some of marketing to new
channels such as social media and mobile marketing.
• 58% of the respondents agree that they are maximizing the value of the pro-
prietary channels they control, such as newsletters, invoices, product pack-
aging and inserts, vehicles and buildings. KTDC has got several marketing
tools and they are utilizing it e?ectively.
• 36% of the respondents agree that the marketing tactics are generating the
best results- leads, conversions or sales at the lowest cost. This indicates
that the marketing tactics used is very e?ective.
• 42% of the respondents agree that they are integrating social media into
traditional marketing tactics like direct mail and advertising. This shows
that KTDC understands the importance of social media in marketing its
products and they are integrating the same into traditional marketing tactics
like direct mail and advertising.
• 54% of the respondents agree that their creative is attention getting and it
stands out in a crowded market place. The creative designs or features used
in ads, brochure etc are attention getting and it is unique which makes it to
di?erentiate from its competitors. Products are also designed in such a way
that it is attention getting. eg: Rain tourism ads, Eco Tourism ads etc
• 36% of the respondents agree that their call to action is loud and clear.
Their prospects know exactly what to do next after reviewing their market-
ing materials. This indicates that messages conveyed in marketing material
are appropriate and very clear. eg: KTDC Hotel Tari? brochure contains
major tourist sites in Kerala, KTDC hotels near to the same, tari?, facil-
ities provided in hotels, contact numbers, addresses, road map etc... The
marketing materials contains all necessary information at a glance.
• 50% of the respondents strongly agree that KTDCs o?er is resonating with
prospects and more and more people saying yes. KTDCs o?ers are tailored
75
according to the market segment. The o?ers are made based on the customer
buying behavior and they are e?ective.
• 64% of the respondents agree that their o?ers showcase their products. The
brochures, ads and other marketing materials used showcases di?erent prod-
ucts of KTDC. These are consistently delivered in all media which ensures
that marketing messages delivered are same.
• 56% of the respondents agree that their o?er delivers real value to the prod-
uct. KTDC hotels gives more value to the customers. The amenities, facili-
ties etc provided are worth the money spend by each customer. In order to
cater to all market segments, KTDC hotels are designed accordingly. Eg:-
Premium Hotels, Tamarind Easy Hotels, Budget Hotels etc.
• 58% of the respondents agree that their sales brochures displays and sales
demonstration tools are accurate, complete and up to date. This shows that
KTDC updates its sales displays and sales demonstration tools frequently,
thereby making them matching with the market needs.
• Majority of the of the respondents strongly agree that their sales tools are
integrated with their brand and their marketing campaigns. This indicates
that marketing strategy is made by inter connecting marketing elements.
• 50% of the respondents agree that they need new tools to educate prospects
about their industry or products. New tools can be used to increase brand
visibility and also to increase awareness about the products among cus-
tomers.
• 60% of the respondents agree that they are compiling email address for an
ongoing sales dialogue. This is a part of strategy used by KTDC to retain
customers. Customer acquisition is more costly than customer retention.
By using emails, new products and o?ers are send to the customers. This is
done to get the attention of customers for an ongoing sales dialogue which
may create a repeat customer in future.
• 36% of the respondents agree that their website is build around the needs
and interest of its visitors. KTDC has build its website in such a way that
required informations are easily accessible for the visitors.
• 30% of the respondents agree that their site is fully optimized for search
engines. Search engine optimization helps the website to be listed in ?rst
76
page of search engines. This shows that KTDC has given importance for
internet marketing.
• 38% of the respondents agree that they are understand the factors buyer
consider when selecting their product or service and they are focusing their
marketing campaigns on those factors. Tourists want to have a great expe-
rience once they visit the place, so when they look in to the ads, they want
to have similar experiences which the people portrayed in the ad had. Eg:-
In Rain tourism ad, a couple enjoying the rain in house boat was shown. So
naturally when a potential customer look at the same, he wants to have a
similar experience and that is the purpose of his visit.
• Marketing channels used are in accordance with the marketing strategies
implemented. Marketing channels used include print media, television, mar-
keting campaigns etc. The main goal of marketing strategy is to increase
the pro?t. By using the marketing channels e?ectively the goal is achieved.
• Social media is integrated with traditional marketing tactics like direct mail
and advertising. Social media has now become a platform for sharing travel
experience and hence Social media is integrated with traditional marketing
tactics like direct mail and advertising.
• There is signi?cant di?erence between gender and opinion about market-
ing strategies. Majority of the respondents are males, so in this study we
have got opinion about marketing strategies mainly from a male employee
perspective.
• Out of the marketing tools used marketing campaign is the pivotal entity.
Marketing campaign has always been a important tool to market Kerala
Tourism activities. Marketing campaign helped to increase the awareness
about Kerala Tourism among potential and existing customers.
4.2 Suggestions
From the above ?ndings following suggestions are put forward.
To improve the internal marketing
Based on the discussions in Sections 3.1.8, 3.1.9 and 3.1.12,
• Company should have sta? meetings to keep the employees up dated on
the hotels marketing objectives and upcoming marketing actions. Give clear
77
instructions and authorization so that the employees are aware of their duties
and what they are allowed to do in di?erent customer related situations.
• Lower to middle-level front-line o?cials of Central and States Tourism De-
partments including those posted in tourist o?ces are usually in regular
contact with the tourists may be given accessibility-speci?c training.
To improve the customer retention practices
Based on the discussions in Sections 3.1.20, 3.1.26 and 3.1.27 .
• In order to take into account the seasonality in customer ?ows, market seg-
mentation should be done more e?ectively. More e?ort should be put into
taking care of the regular customers.Partner with the expert players in the
tourism industry as a whole to gain from their experience.
• Develop a loyal customer program: Gather and maintain a list of items or
other bonuses that the loyal customer can receive; discount on the room
rate, better room type, chocolates/ other items delivered to the room before
arrival.
• By contacting the customer for example by email and thanking for the feed-
back and promising to take it into account of their feedback makes the
customer feel more in contact with the hotel. Responding to the feedback
also gives an image of the hotel that it wants to be involved.
To improve the e?ective utilization of marketing channels
Based on the discussions in Sections 3.1.14, 3.1.30, 3.1.24 and 3.1.23.
• Plan and develop di?erent kinds of marketing campaigns and o?ers. Create
and develop new campaigns on monthly bases. They can be derived for
example from the di?erent seasons or holidays. They can be directed to
speci?c customer group. Market these campaigns on the company’s web
pages. Create and develop new campaigns on monthly bases.
• Descriptive brochures and images about tourism activities, which relate to
its special qualities and is tailored to target markets, should be prepared for
use in destination marketing vehicles.
• Optimize the marketing materials for mobile as 20% of all web tra?c comes
from mobile.
78
• Visitor information kiosks can o?er the information visitors need 24 hours a
day/7 days a week. Besides having kiosks at the rest areas, they should be
placed strategically throughout the county so that they can cross-promote
activities, events, attractions and amenities. The more visitors see there is
to do in the county, the longer they will stay and the more money they will
spend. Every site should cross-sell to other sites, attractions and amenities.
Kiosks come in all shapes and sizes - they should be designed to ?t the
character of the town or location. Maintain and stock them regularly. Keep
the information up-to-date.
• Promote activities, not just scenic vistas and ambiance. When people see
others doing fun activities in a great setting, it is easy for them to imagine
themselves there too. Promote people over places.
• Promote experiences over locations. Location is always second to the ac-
tivity, people are looking for things to do ?rst, then they will consider the
general location second. Visitors do not really care about boundaries - it
does not matter if they are in a speci?c region, county, district, city or town.
• Promote the EXPERIENCE.Brands are perceptions, and the perception is
based on what people expect to experience. Base the brand on activities
that is what people are looking for. Great photography that shows people
having a great time helps your potential visitors imagine themselves doing
the same thing.
To improve the Internet marketing
Based on the Sections 3.1.17, 3.1.27 and 3.1.28.
• Internet has a pivotal role in getting more customers; hence the full potential
of Internet should be used. The following suggestions will help for the same.
a) Customers have a mindset to book or check in hotels that ?rst come in
the google search and map results. Hence dominate google local search and
map results.
b) Social media should be used to give relevant updates. Communicate with
social media audience via relevant and engaging content.
c) Email marketing continues to be an e?ective tool for staying top of mind
with customers which leads to better retention. Email campaigns are also
helpful. Also include a link to company website in the email signatures.
79
d) Be active in relevant travel & hotel communities.
e )Create videos and distribute online, also add the same to own website.
f) Conduct online contests, give discounts and exclusive packages to winners.
80
Chapter 5
Conclusions
In this project the e?ectiveness of marketing elements such as brand, mar-
keting messages, marketing channels, marketing tactics, creative approaches, of-
fers, sales tools, data and website had been studied from the view point of em-
ployees. From the study it is understood that the organisation needs to improve
its marketing channels and marketing tactics. This project strongly recommends
that the organisation should improve its internal marketing, innovative customer
retention practices, Internet marketing and use of marketing channels. Results of
analyses in this project report show that any organization in travel and tourism
industry should update its facilities. It should take steps forward to gain new cus-
tomer groups. It should also adopt a new approach to keep the customers satis?ed
and to retain them.
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ating unique value with customers. Harvard Business School Pub.
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83
Appendix
Questionnaire
Title: A study on internal perspective of marketing strategies im-
plemented by KTDC
Personal details
Gender: Male Female
Age: 20-30 31-40 41 and above
Quali?cation: Plus Two Degree Technical PG
Experience: Less than 1 year 1-5 years 6-10 years Above 10
Years
Income: 5000-10000 10001-20000 20001-30000 Above 30000
1.The brands used by KTDC clearly communicates what they are about
and convey the highest value they deliver
Strongly agree Agree Neutral Disagree Strongly disagree
2.The brand identity is being popularly used in all media
Strongly agree Agree Neutral Disagree Strongly disagree
3.KTDC know its most pro?table customers and they are targeting prospects
that look like their best customer
Strongly agree Agree Neutral Disagree Strongly disagree
4.Customers changed the way they ?nd, buy, or use KTDCs product or
service and KTDC have adjusted its marketing plan accordingly
Strongly agree Agree Neutral Disagree Strongly disagree
5.KTDC is actively up-selling and cross-selling products and services to
their current customers
Strongly agree Agree Neutral Disagree Strongly disagree
6.KTDC have three to ?ve key marketing messages that theyre consistently
delivering in all media
Strongly agree Agree Neutral Disagree Strongly disagree
7.These messages match the experience customers have when they interact
with KTDCs sta?
Strongly agree Agree Neutral Disagree Strongly disagree
8.KTDC is tailoring messages to speci?c market segments when they have
the opportunity to do so
Strongly agree Agree Neutral Disagree Strongly disagree
9.It is time to shift some or more of KTDCs marketing to new channels
such as social media and mobile marketing
Strongly agree Agree Neutral Disagree Strongly disagree
10.KTDC is maximizing the value of the proprietary channels they control,
such as newsletters, invoices, product packaging and inserts, vehicles, and build-
ings
Strongly agree Agree Neutral Disagree Strongly disagree
11.Marketing tactics are generating the best results leads, conversions, or
sales at the lowest cost
Strongly agree Agree Neutral Disagree Strongly disagree
II
12.KTDC is integrating social media into traditional marketing tactics like
direct mail and advertising
Strongly agree Agree Neutral Disagree Strongly disagree
13.KTDCs creative is attention-getting. It stands out in a crowded mar-
ketplace
Strongly agree Agree Neutral Disagree Strongly disagree
14.KTDCs call to action is loud and clear. KTDCs prospect know exactly
what to do next after reviewing our marketing materials
Strongly agree Agree Neutral Disagree Strongly disagree
15.KTDCs o?er is resonating with prospects. More and more people are
saying yes
Strongly agree Agree Neutral Disagree Strongly disagree
16.KTDCs o?ers showcase their product
Strongly agree Agree Neutral Disagree Strongly disagree
17.KTDC o?er delivers real value to the prospect
Strongly agree Agree Neutral Disagree Strongly disagree
18.KTDCs sales brochures, displays, and sales demonstration tools are ac-
curate, complete, and up to date
Strongly agree Agree Neutral Disagree Strongly disagree
19.Sales tools are integrated with KTDCs brand and their marketing cam-
paigns
Strongly agree Agree Neutral Disagree Strongly disagree
III
20.New tools are required to educate prospects about our industry or prod-
uct
Strongly agree Agree Neutral Disagree Strongly disagree
21.KTDC is capturing customer and prospect data to build a robust mar-
keting database
Strongly agree Agree Neutral Disagree Strongly disagree
22.KTDC is compiling email addresses for an ongoing sales dialogue
Strongly agree Agree Neutral Disagree Strongly disagree
23.KTDCs website is built around the needs and interests of their visitors
Strongly agree Agree Neutral Disagree Strongly disagree
24.KTDCs site is fully optimized for search engines
Strongly agree Agree Neutral Disagree Strongly disagree
25.KTDC understand the factors buyers consider when selecting their prod-
uct or service and they are focusing their marketing campaigns on those factors
Strongly agree Agree Neutral Disagree Strongly disagree
IV
doc_201039800.pdf
Marketing Strategies Implemented
by KTDC
Project report
submitted in partial ful?lment of the requirements for
the award of the Degree of
Master of Business Administration
of the University of Kerala
Submitted by:
Belli P K
DEPARTMENT OF BUSINESS ADMINISTRATION
COLLEGE OF ENGINEERING TRIVANDRUM
July 2013
DEPARTMENT OF BUSINESS ADMINISTRATION
College of Engineering Trivandrum
2013
CERTIFICATE
This is to certify that the report titled “A Study on Internal Per-
spective of Marketing Strategies Implemented by KTDC”
being submitted by Belli P K in partial ful?lment of the require-
ments for the award of the Degree of Master of Business Adminis-
tration, is a bona?de record of the project work done by Belli P K
at College of Engineering Trivandrum.
Dr. Chandramohan Dr. D Bijulal
Director Professor
Declaration
I undersigned, hereby declare that the project titled “A Study
on Internal Perspective of Marketing Strategies Implemented by KTDC”
submitted in partial ful?lment for the award of Degree of Master of
Business Administration of the University of Kerala is a bona?de
record of work done by me under the guidance of Dr. D Bijulal, De-
partment of Business Administration, College of Engineering Trivan-
drum. This report has not previously formed the basis for the award
of any degree, diploma, or similar title of any other university.
Belli P K
Acknowledgements
I wish to record my deep sense of gratitude and profound thanks to my
guide Dr D Bijulal, Professor, Department of Business Administration, College of
Engineering Trivandrum for his guidance and help through out the period of this
project work.
At this juncture I accord my deep sense of thanks and gratitude to Dr
Chandramohan, Director and HOD for his valuable direction enabling me to com-
plete this project.
I take this opportunity to express my sincere thanks to Mr Rajmohan G
S, Marketing manager, KTDC for giving me an opportunity to do the project in
their esteemed organisation.
I express my ultimate gratitude to God Almighty who has been an instru-
ment for enlightening me on academic venture.
Last but not the least I take this opportunity to thank my parents and
friends who helped me in making this endeavor a success.
Belli P K
i
Abstract
Marketing is often thought of only as promotion of products, especially
advertising and branding. However it has wider meaning which recognises that
it is customer centered. A review of the literature reveals that marketing strat-
egy is important for all company. Marketing strategy is a process that allows an
organisation to concenterate its resources on optimal opportunities with goal of
increasing sales and achieving suitable competitive advantage.The project work
is conducted in Kerala Tourism Development Corporation (KTDC) at Mascot
square, Trivandrum. KTDC uses a marketing strategy whose e?ectiveness is un-
certain. The primary objective of this study is to evaluate the marketing strategy
of KTDC from employees perspective. For the study a questionnaire was made
based on the variables like brand, market, messages, marketing channels, market-
ing tactics, marketing campaign, sales tools and website. From the study it is
found that KTDC uses a less e?ective marketing strategy which needs to be mod-
i?ed. The recommendations provided will give KTDC a framework for making
new marketing plan.
Keywords: marketing strategy, marketing strategy evaluation, management
perspective , KTDC marketing strategy.
ii
Contents
Page
List of Tables vii
List of Figures viii
1 Introduction 1
1.1 Background of the problem . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Industry pro?le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1 Tourism in India . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.2 Tourism in Kerala . . . . . . . . . . . . . . . . . . . . . . . . 5
1.3 Introduction to the company . . . . . . . . . . . . . . . . . . . . . . 7
1.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.2 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.3 Key objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.4 Brands and products . . . . . . . . . . . . . . . . . . . . . . 10
1.4 Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.4.1 Objectives of study . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.2 Research design . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.3 Sources of data . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.4.4 Statistical analysis tools used . . . . . . . . . . . . . . . . . 15
1.4.5 Period of study . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4.6 Hypothesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4.7 Scope of study . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.4.8 Limitation of study . . . . . . . . . . . . . . . . . . . . . . . 17
1.5 Chapterisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 Literature review 18
2.1 Marketing mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.2 Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 19
iii
2.2.1 Geographical segmentation . . . . . . . . . . . . . . . . . . . 19
2.2.2 Demographic segmentation . . . . . . . . . . . . . . . . . . . 20
2.2.3 Psychographic segmentation . . . . . . . . . . . . . . . . . . 20
2.2.4 Behavioral segmentation . . . . . . . . . . . . . . . . . . . . 20
2.3 Relationship marketing . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.4 Introduction to marketing strategy . . . . . . . . . . . . . . . . . . 21
2.5 Marketing strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.5.1 3 Cs of marketing strategy . . . . . . . . . . . . . . . . . . . 23
2.6 Strategic role of marketing . . . . . . . . . . . . . . . . . . . . . . . 23
2.7 Elements of marketing strategy . . . . . . . . . . . . . . . . . . . . 25
2.8 Types of marketing strategy . . . . . . . . . . . . . . . . . . . . . . 26
2.8.1 Position defense . . . . . . . . . . . . . . . . . . . . . . . . 26
2.8.2 Mobile defense . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.8.3 Flank position . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.4 Counter o?ensive . . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.5 Preemptive defense . . . . . . . . . . . . . . . . . . . . . . . 27
2.8.6 Contraction defense . . . . . . . . . . . . . . . . . . . . . . . 27
2.9 Marketing strategy formulation . . . . . . . . . . . . . . . . . . . . 28
2.10 Marketing strategy implementation . . . . . . . . . . . . . . . . . . 29
2.10.1 Management involvement in strategy implementation . . . . 29
2.10.2 8S framework of strategy implementation . . . . . . . . . . . 30
2.11 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3 Data Collection and Analysis 33
3.1 Percentage Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.1.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . 34
3.1.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . 35
3.1.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . 36
3.1.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . 37
3.1.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . 38
3.1.6 About the clarity in communication . . . . . . . . . . . . . . 39
3.1.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . 40
3.1.8 Awareness about pro?table customers . . . . . . . . . . . . . 41
3.1.9 Awareness about customers changing buying behavior . . . . 42
3.1.10 Opinion on up-selling and cross selling . . . . . . . . . . . . 43
3.1.11 Key marketing messages that is consistently delivered in media 44
3.1.12 Experience customers have while interacting with employees 45
iv
3.1.13 Targeting of messages to speci?c market segments . . . . . 46
3.1.14 Opinion on shifting marketing to new channels . . . . . . . . 47
3.1.15 Opinion on maximizing the value . . . . . . . . . . . . . . . 48
3.1.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . 49
3.1.17 Integration of social media into traditional marketing . . . . 50
3.1.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . 51
3.1.19 Clarity of marketing materials used . . . . . . . . . . . . . . 52
3.1.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . 53
3.1.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . 54
3.1.22 Role of o?ers in the product value . . . . . . . . . . . . . . . 55
3.1.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . 56
3.1.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . 57
3.1.25 About the need of new tools . . . . . . . . . . . . . . . . . . 58
3.1.26 About the capturing of customer and prospect data . . . . . 59
3.1.27 About the compiling of email address . . . . . . . . . . . . . 60
3.1.28 About the website . . . . . . . . . . . . . . . . . . . . . . . 61
3.1.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.1.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . 63
3.2 Chi Square test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.2.1 Test of independence . . . . . . . . . . . . . . . . . . . . . . 64
3.2.2 Test of Goodness of Fit . . . . . . . . . . . . . . . . . . . . . 67
3.3 Correlation Coe?cient . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.4 Weighted Average Method . . . . . . . . . . . . . . . . . . . . . . . 71
4 Findings and Suggestions 73
4.1 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
4.1.1 Demographic pro?le . . . . . . . . . . . . . . . . . . . . . . 73
4.1.2 Findings related to marketing strategies . . . . . . . . . . . 73
4.2 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5 Conclusions 81
References 83
v
List of Tables
Table Page
1.1 Industry pro?le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . 34
3.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . . . . . 36
3.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . . . . . 37
3.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . 38
3.6 About the clarity in communication . . . . . . . . . . . . . . . . . . 39
3.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.8 Awareness about pro?table customers . . . . . . . . . . . . . . . . . 41
3.9 Awareness about customers changing buying behavior . . . . . . . . 42
3.10 Opinion on up-selling and cross selling . . . . . . . . . . . . . . . . 43
3.11 Key marketing messages that is consistently delivered in media . . . 44
3.12 Experience customers have while interacting with employees . . . . 45
3.13 Targeting of messages to speci?c market segments . . . . . . . . . . 46
3.14 Opinion on shifting marketing to new channels . . . . . . . . . . . . 47
3.15 Opinion on maximizing the value . . . . . . . . . . . . . . . . . . . 48
3.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . . . . . 49
3.17 Integration of social media into traditional marketing . . . . . . . . 50
3.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . . . . . 51
3.19 Clarity of marketing materials used . . . . . . . . . . . . . . . . . . 52
3.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.22 Role of o?ers in the product value . . . . . . . . . . . . . . . . . . . 55
3.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . . . . . 56
3.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . . . . . 57
3.25 About the need of new tools . . . . . . . . . . . . . . . . . . . . . . 58
3.26 About the capturing of customer and prospect data . . . . . . . . . 59
3.27 About the compiling of email address . . . . . . . . . . . . . . . . . 60
3.28 About the website . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . . . . . 63
3.31 Contingency Table . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.32 Observation Table for Hypothesi 1 . . . . . . . . . . . . . . . . . . . 65
3.33 Analysis Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
vi
3.34 ?
2
goodness-of-?t test for observed counts in variable . . . . . . . . 68
3.35 Observation Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.36 Attribute Response Table . . . . . . . . . . . . . . . . . . . . . . . 71
3.37 Weighted Average of Attributes . . . . . . . . . . . . . . . . . . . . 72
vii
List of Figures
Figure Page
3.1 Gender wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . 34
3.2 Age wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.3 Quali?cation wise classi?cation . . . . . . . . . . . . . . . . . . . . 36
3.4 Experience wise classi?cation . . . . . . . . . . . . . . . . . . . . . 37
3.5 Income wise classi?cation . . . . . . . . . . . . . . . . . . . . . . . . 38
3.6 About the clarity in communication . . . . . . . . . . . . . . . . . . 39
3.7 Usage of brand identity . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.8 Awareness about pro?table customers . . . . . . . . . . . . . . . . . 41
3.9 Awareness about customers changing buying behavior . . . . . . . . 42
3.10 Opinion on up-selling and cross selling . . . . . . . . . . . . . . . . 43
3.11 Key marketing messages . . . . . . . . . . . . . . . . . . . . . . . . 44
3.12 Experience customers have while interacting with employees . . . . 45
3.13 Targeting of messages to speci?c market segments . . . . . . . . . . 46
3.14 Opinion on shifting marketing to new channels . . . . . . . . . . . . 47
3.15 Opinion on maximizing the value . . . . . . . . . . . . . . . . . . . 48
3.16 Opinion on marketing tactics . . . . . . . . . . . . . . . . . . . . . 49
3.17 Integration of social media into traditional marketing . . . . . . . . 50
3.18 Opinion on creativity used . . . . . . . . . . . . . . . . . . . . . . . 51
3.19 Clarity of marketing materials used . . . . . . . . . . . . . . . . . . 52
3.20 Resonance of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.21 E?ectiveness of o?ers . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.22 Role of o?ers in the product value . . . . . . . . . . . . . . . . . . . 55
3.23 Sales brochure attributes . . . . . . . . . . . . . . . . . . . . . . . . 56
3.24 Integration of sales tools . . . . . . . . . . . . . . . . . . . . . . . . 57
3.25 About the need of new tools . . . . . . . . . . . . . . . . . . . . . . 58
3.26 About the capturing of customer and prospect data . . . . . . . . . 59
3.27 About the compiling of email address . . . . . . . . . . . . . . . . . 60
3.28 About the website . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.29 SEO of website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.30 Focusing of marketing campaigns . . . . . . . . . . . . . . . . . . . 63
3.31 Chart of observed and expected values . . . . . . . . . . . . . . . . 66
3.32 Chart of contribution to chi-square value by category . . . . . . . . 69
viii
Chapter 1
Introduction
There are numerous de?nitions for marketing and what constitutes a mar-
keting strategy. Often marketing is thought of only as the promotion of products,
especially advertising and branding. However, marketing has a wider meaning
which recognizes that it is customer centered. A marketing strategy is the busi-
ness approach to promote its products and services expressed in broad terms. A
marketing strategy, in turn, forms the basis of the marketing plan. The marketing
plan contains the set of speci?c activities required to successfully implement a
marketing strategy.
Marketing strategies serve as the fundamental underpinning of marketing
plans designed to ?ll market needs and reach marketing objectives. Plans and ob-
jectives are generally tested for measurable results. Commonly, marketing strate-
gies are developed as multi-year plans, with a tactical plan detailing speci?c actions
to be accomplished in the current year. Marketing strategies are dynamic and in-
teractive. They are partially planned and partially unplanned.
Marketing strategy involves careful scanning of the internal and external
environments. Internal environmental factors include the marketing mix, plus
performance analysis and strategic constraints. External environmental factors
include customer analysis, competitor analysis, target market analysis, as well
as evaluation of any elements of the technological, economic, cultural or politi-
cal/legal environment likely to impact success.
Once a thorough environmental scan is complete, a strategic plan can be
constructed to identify business alternatives, establish challenging goals, deter-
mine the optimal marketing mix to attain these goals, and detail implementation.
A ?nal step is to create a plan to monitor the progress and to set alternative plans
if a problem arises during the implementation of the plan.
1.1 Background of the problem
KTDC has been playing a key role in the development of infrastructure
facilities required by the rapidly growing tourist tra?c into the State of Kerala
and has been the prime mover in the progressive development, promotion and
expansion of tourism in the State. Apart from developing the largest hotel chain
in Kerala, KTDC o?ers tourism related facilities like conducted tours, boating,
tourist reception centers, centralized/online reservations, conventional services,
customized tour packages etc. KTDC uses marketing campaigns, brochures, so-
cial media marketing etc to market its products. KTDC also gives training to
employees so that a standardized service is given for its customers. This is done
as a part of internal marketing. KTDC uses a marketing strategy which is dis-
tinctive from its competitors. But how far the marketing strategy is e?ective is
uncertain. This project evaluates the e?cacy of marketing strategy of KTDC and
thereby suggesting a suitable marketing plan.
1.2 Industry pro?le
Tourism is considered as an agent of social change bridging gaps among
nations, regions and people and helping them to open up. It is a promoter of
development- material and spiritual both at macro and micro level. The World
Tourism Organization de?nes tourists as people traveling to and staying in places
outside their usual environment for not more than one consecutive year for leisure,
business and other purposes.
Table 1.1: Industry pro?le
Output per annum Increased 7 % per annum
Percentage in world market 6.5% share
Market Capitalization 6.23% of GDP
Tourism is important, and in some cases, vital for many countries. It was
recognized in the Manila Declaration on World Tourism of 1980 as an activity
essential to the life of nations because of its direct e?ects on the social, cultural,
2
educational, and economic sectors of national societies and on their international
relations. Tourism brings in large amounts of income in payment for goods and
services available, accounting for 30% of the world’s exports of services, and 6% of
overall exports of goods and services. It also creates opportunities for employment
in the service sector of the economy, associated with tourism. These service indus-
tries include transportation services, such as airlines, cruise ships, and taxicabs;
hospitality services, such as accommodations, including hotels and resorts; and
entertainment venues, such as amusement parks, casinos, shopping malls, music
venues, and theaters.
1.2.1 Tourism in India
India is the second-fastest growing tourism market in the world. Tourism
in India is the largest service industry contributing up to 6.23 per cent to the
National Gross Domestic Product (GDP) and providing 8.78 per cent of the total
employment opportunity in India. It is also the second largest sector in coun-
try providing employment opportunities for low skilled people. India’s travel and
tourism industry is one of the most pro?table industries in the country. It is also
credited with contributing a substantial amount of foreign exchange to the exche-
quer. Indian is a land of vast tourism opportunities as it is comprised of di?erent
cultures, traditions, festivals, and places of interest.
The country is one of the favorite tourist destinations around the world,
according to world travel and tourism Council (WTTC). Further, the Travel and
Tourism Competitiveness Report by World Economic Forum, has ranked India at
the sixth place in tourism and hospitality. India provides the facility to Tourists of
international origin to understand and experience cultural diversity of the country.
According to Indian o?cial estimates the tourism in India has outperformed the
global tourism industry in accordance with the growth, volume of foreign tourists
& even the revenue.
India witnesses about more than 5 million annual foreign tourist arrivals
and 562 million domestic tourism visits. Indian Tourism Industry generated about
US$100 billion in 2008 which is expected to increase to US$275.5 billion by 2018
at a 9.4% annual growth rate. The Campaign of ”Incredible India” is developed
by the Ministry of Tourism is used for the promotion of tourism in India.
3
Tourism products o?ered by India
1. Cruise tourism
2. Adventure tourism
3. Medical tourism
4. Wellness tourism
5. Golf tourism
6. Polo tourism
7. Meetings incentives conferences and exhibition
8. Film tourism
9. Eco tourism
Domestic media campaigns, international campaigns, national tourism awards,
international accolades, participation in travel fairs and exhibition, road shows,
food festivals, printing of brochures, outdoor publicity by advertising on taxis,
buses, trains, hoardings and billboards are some of the publicity and marketing
techniques adopted by Ministry of tourism, Government of India. Each state
further has its own publicity and marketing techniques. Eg: Kerala- Gods own
country campaign, Madhyapradesh- Hindusthan ki dil dekho campaign etc
Role of Ministry of Tourism
The Ministry of Tourism plays a crucial role in formulating national poli-
cies and programs as well as coordinating and supplementing the e?orts of the
State/Union Territory Governments and private sector in improving the quality
of tourism Industry. As regards the domestic market, the Ministry aims to popu-
larize the culture and natural beauty of di?erent regions, pilgrim sites and various
new tourism products.
The Ministry has a public sector undertaking namely the India Tourism
Development Corporation (ITDC) for carrying out its various functions, along
with the following autonomous institutions:-
1. Indian Institute of Tourism and Travel Management (IITTM)
2. National Institute of Water Sports (NIWS) has merged with IITTM
4
3. National Council for Hotel Management and Catering Technology (NCHMCT)
4. Institutes of Hotel Management (IHM)
The foreign direct investments (FDI) of Indian hotel and tourism industry
which contributes to the Indian economy in?ows are US$ 2.1 billion from April
2000 to March 2010, according to the Department of Industrial Policy and Promo-
tion (DIPP).Indian Export earnings from international visitors and tourism goods
are expected to generate US$ 51.4 billion (nominal terms) by 2019. Furthermore,
the sector which accounted for 6.4% of total employment in 2009 is estimated to
rise to 7.2% of total employment by 2019.
Tourism industry in India holds tremendous potential for India’s economy
which eventually provide impetus to other industries, create millions of new jobs
and generate enough wealth to help pay o? the international debt. This is the
main reason that today it is included that Tourism is amongst the Core Sectors
of the Indian Economy.
Indian Tourism Industry has got a major boost because of the booming IT
and outsourcing industry with increased number of business trips made by foreign-
ers to India, who will often add a weekend break or longer holiday to their trip.
They spend more time here in India than almost any other country worldwide.
1.2.2 Tourism in Kerala
Kerala state is considered as one of the ten paradises in the world. In more
ways than one, Kerala takes the credit for being the ?rst state in India to compre-
hend the signi?cance and importance of positioning and branding in the sphere of
tourism. From being a non entity in the mid 1980s, Kerala today has evolved into
an Indian tourisms superbrand and the countrys most premium holiday destina-
tion. Keralas worldwide success represents the triumph of vision, professionalism
and public private partnerships in the volatile and turbulent world of tourism.
Brief history
Kerala initiated tourism development programmes by establishing an in-
ternational beach resort at Kovalam in 1976 with the patronage of the central
government. Realizing the economic potentials, Government of Kerala declared
5
tourism as an industry in 1986. Within a short span of two and half decades, Ker-
ala succeeded in establishing its tourism brand in the international market. The
?rst tourism policy of the state was announced in 1995 underlining the importance
of Public Private Partnership.
Tourism has come a long way since then, capturing new markets with its
innovative products and marketing strategies. From hardly 50000 foreign tourist
arrivals and 0.13 billion rupees as foreign exchange in 1986, it has reached a status
of 0.6 million foreign tourist arrivals and 37.97 billion rupees as foreign exchange
in 2010. Total employment generated from tourism is estimated as 1.2 million.
Tourism development organisations
The ?agship of tourism industry in Kerala is Department of tourism, Gov-
ernment of Kerala. Kerala Tourism Development corporation (KTDC), Bekal Re-
sorts Development Corporation (BRDC), Tourists Resorts Kerala Ltd (TRKL),
District Tourism Promotion Council (DTPC), Kerala Institute of Travel and
Tourism Management Studies (KITTS), Kerala Institute of Hospitality Manage-
ment Studies (KIHMS), Thenmala EcoTourism Development Agency and a host
of Government Departments such as forest and wildlife, irrigation, museum, zoo
and archaeology are other important state sponsored institutions which play key
role in Tourism sector of Kerala. Besides there are numerous agencies working in
the semigovernment and private sectors for the promotion of Kerala Tourism.
Role of KTDC in tourism development
KTDC plays a prominent role in tourism sector of Kerala. Kerala had been
an unknown destination till 1980s. The aggressive marketing of KTDC laid foun-
dation for growth of tourism industry and transformed Kerala into one of niche
holiday destination. The tag line Kerala Gods own country used in its promotions
became a global super brand. Gods own country is perhaps the most powerful
positioning statement for an Indian destination.
Kerala started aggressive print campaign in the late 1980s. The turning
point however happened when National geographic Traveller, after expensive re-
search spanning two years, brought out a special issue on the 50 destinations of a
6
lifetime the only destination that featured from India was Kerala. The ?rst ever
television commercial done by tourism board in India, captured the magic of Ker-
ala and di?erentiated it from other states. Kerala also became the ?rst tourism
board in India to venture advertising on internet.
Tourist season of Kerala starts from September to May. Kerala is famous for
beaches, backwaters, mountain ranges, wildlife sanctuaries, hill stations, ayurveda,
culture, art forms, festivals etc. Kerala has also launched shopping festivals, the
?rst biennale in India, International coir fest etc as an innovative method to get
more publicity. State promotes ecologically sustained tourism, which focuses on
the local culture, wilderness adventures, volunteering and personal growth of the
local population. E?orts are taken to minimize the adverse e?ects of traditional
tourism on the natural environment, and enhance the cultural integrity of local
people.
Kerala has set an example for other Indian states by pursuing a visionary
approach in tourism; by pushing doors open rather than waiting for the doors to
open, by being truly authentic in the experience it o?ers, by building relationships
worldwide and by thinking globally and acting locally.
1.3 Introduction to the company
KTDC Hotels and Resorts Limited (KTDC) was incorporated on 29
December 1965 as a private limited company with its registered corporate o?ce
situated at Mascot square, Trivandrum. The initial name of the company was Ker-
ala Tourist and Handicrafts Corporation Private Limited. It was then changed as
Kerala Tourism Development Corporation Limited from 15 July 1970 and later as
KTDC Hotels and Resorts Limited from 07 October 2010 and now it is KTDC.
KTDC has been playing a key role in the development of infrastructure facilities
required by the rapidly growing tourist tra?c into the State of Kerala and has
been the prime mover in the progressive development, promotion and expansion
of tourism in the State. Apart from developing the largest hotel chain in Kerala,
KTDC o?ers tourism related facilities like conducted tours, boating, tourist re-
ception centers, centralized/online reservations, conventional services, customized
tour packages etc.
KTDC, the states premier destination developer, owns over 60 properties
7
ranging from luxury hotels to budget hotels and motels, Yatri Nivases and restau-
rants, KTDC aptly quali?es as the o?cial host to Gods own Country. The pre-
mium properties of this largest hotel chain in the state are located in the most
picturesque theme destinations of Kerala. KTDC also o?ers Ayurveda centres, cul-
tural entertainment and the best of Keralas cuisine at all its major establishments.
KTDC o?ers comprehensive holiday package Exclusive Escapades o?ers hol-
iday packages that are set in the premium properties of KTDC. As a pioneering
tourism development corporation, KTDC has also introduced innovative concepts
like insured holiday and rail holidays, which provide a complete Kerala package.
Kerala Tourism Development Corporation (KTDC) is the most successful
public sector undertaking The KTDC group of hotels has already stamped the
power in term of quality, marketing and hospitality. Even at the time of recession,
Kerala though showed a dim e?ect in the Kerala tourism ?eld but where far ahead
when compared to other state, KTDC too showed the growth and from then on
there was no look back. KTDC, the largest hotel chain which includes a range
of luxury and economy resorts, hotels, and motels located in the heart of some of
Keralas most acclaimed destinations.
The company aims to be the major player in development of tourism in-
frastructure in the state. It provides elegant accommodation and better quality
services in KTDC hotels and restaurants. It tries to achieve high levels of produc-
tivity of employees by better training, motivation and HRD techniques. It also
promotes ecofriendly and sustainable tourism and also tourism products. The
company primarily focuses on building up capacities to handle increasing ?ow of
tourists into Kerala in a planned manner.
The brands and products of the company include heritage hotels, premium
hotels, Tamarind easy hotels, motels, restaurants, central reservation centre, shop-
ping complex and water sports. Beer parlors are on lease basis. KTDC has 3
regional o?ces north Calicut, central Kochi and south Trivandrum.
1.3.1 Mission
To provide leadership and play a catalytic role in the development of tourism
infrastructure in the State and to achieve excellence in strategic business opera-
8
tions through professionalism, e?ciency, value for money and customer satisfac-
tion.
1.3.2 Vision
To make KTDC the o?cial host to Gods own country, the best service
provider in the hospitality industry with basic infrastructure and state-of-the-art
facilities, focusing on environment conservation and preservation, adding impetus
to local supplies and human resources and thereby positioning as a Premier PSU
in the hospitality sector in Kerala.
1.3.3 Key objectives
1) To be a major player in the development of tourism infrastructure in the
State.
2) To treat the tourists as our Guests (Adhidhi Devo Bhava) and ensure
customer delight by providing value for money.
3) To provide elegant accommodation and better quality services in KTDC
Hotels and Restaurants.
4) To function as an e?cient corporate house with improved productivity
levels and pro?t margins.
5) Achieve high levels of productivity of its employees by way of better
training, motivation and HRD techniques.
6) To empower the host population through responsible tourism.
7) To promote and market our products at National and International level
and thereby making Kerala as a premier Global tourism destination.
8) To promote sustainable and eco-friendly tourism in the state based on
the carrying capacity of the destinations.
9) To conserve, preserve the art, culture and heritage of the State.
9
10) To promote new innovative tourism products, lesser-known destinations.
11) To provide transport, entertainment, shopping, convention and recre-
ational services.
12) To render consultancy and managerial services in the hospitality indus-
try.
13) To undertake pioneering e?orts for destination development.
14) To play an active role in association with the State Tourism Depart-
ment/Directorate in conceptualizing and execution of tourism projects, publicity,
promotion and training.
1.3.4 Brands and products
Heritage Hotels
1. Lake Palace, Thekkady.
2. Bolgatty Palace, Kochi.
Premium Hotels
1. Mascot Hotel, Thiruvanathapuram.
2. Hotel Samudra, Kovalam.
3. Waterscapes, Kumarakom.
4. Aranya Nivas, Thekkady.
5. Tea County, Munnar.
6. Bolgatty Island Resort, Kochi.
7. Marina House, Kochi.
Budget Hotels
1. Hotel Chaithram,Thiruvananthapuram.
2. Periyar House, Thekkady.
3. Garden House, Malampuzha.
4. Nandanam, Guruvayoor.
5. Mangalya, Guruvayoor.
7. Pepper Grove, Sulthan Bathery.
10
8.Golden Peak, Ponmudi
Tamarind Easy Hotels
1. Tamarind Easy Hotel, Neyyardam.
2. Tamarind Easy Hotel, Kollam.
3. Tamarind Easy Hotel, Changanasery.
4. Tamarind Easy Hotel, Alappuzha.
5 Tamarind Easy Hotel, Peermade.
6. Tamarind Easy Hotel, Thrissur.
7. Tamarind Easy Hotel, Guruvayoor.
8. Tamarind Easy Hotel, Mannarkadu.
9 . Tamarind Easy Hotel, Nilambur.
10. Tamarind Easy Hotel, Kondotty.
11. Tamarind Easy Hotel, Thirunelly.
12. Tamarind Easy Hotel, Kannur.
13. Tamarind Easy Hotel, Parasinikkadavu
Motels
1. Motel Araam, Kottarakkara.
2. Motel Araam, Palaruvi.
3. Motel Araam, Punalur.
4. Motel Araam, Kayamkulam.
5. Motel Araam, Alappuzha.
6. Motel Araam, Vaikom.
7. Motel Araam, Athirappally.
8. Motel Araam, Erumayur.
9. Motel Araam, Vadakara.
10. Motel Araam, Kuttipuram.
11. Motel Araam, Kannur.
Restaurants
1. KTDC Restaurant, Veli, Thiruvananthapuram.
2. KTDC Restaurant, Museum, Thiruvananthapuram.
3. Anantha Restaurant, New Delhi.
Others
1. Central Reservation Centre,Thiruvananthapuram.
11
2. Tourist Reception Centre,Thiruvananthapuram.
3. Tourist reception Centre, Ernakulam.
5. Shopping Complex, Shanmugam Road, Ernakulam.
6. Watersports, Veli.
Others on lease basis
Budget Hotel
1. Malabar Mansion, Kozhikode.
Restaurant & Beer Parlours
1. Karamana, Thiruvananthapuram.
2. Peyad, Thiruvananthapuram.
3. Statue, Thiruvananthapuram.
4. Balaramapuram.
5. Kazhakuttam.
6. Varkala.
7. Attingal.
8. Harippad.
9. Karukachal
10. Muvattupuzha.
11. Kanjikode, Palakkad.
12. Kozhinjampara, Palakkad.
13. Ramanattukara.
14. Changaramkulam.
15. Koyilandy.
16. Payyannur.
17. Kanhangad, Kazarcode.
18. Kannur.
1.4 Research methodology
While conducting a research there are two ways of approaching the same.
They are
1) Qualitative research method
12
2) Quantitative research method.
Quantitative research method
Quantitative research method emphasizes quanti?cation in the collection
and analysis of the information. The aim is to gather numerical evidence where
conclusions can be drawn from or they can be used to test hypotheses. In order to
get reliable results it is necessary to study relatively large sample group and use
a computer to analyze the collected information. The information is derived from
questionnaire surveys, secondary sources and from observation involving counts.
Qualitative research method
Qualitative research method on the contrary does not involve numerical
data but emphasizes words rather than numbers. This method uses only a small
sample group; the primary information is gathered from a small number of people.
The information gathered cannot usually be presented in numerical form. This
research method is used when a full understanding of the sample group is required.
The information is derived from observation, informal and in-depth interviewing
and participant observation.
A description of research plan for the present study is discussed as under:
A study on internal perspective of marketing strategies implemented by KTDC
was conducted at KTDC situated in Trivandrum and the study covers the mar-
keting department which has a major role in designing and executing marketing
strategies. The means of collecting data is through secondary and primary data
collection methods.
Primary data was collected from the organisation through personnel visit,
questionnaire, interviews and discussions with important executives and sta? mem-
bers of various departments. The variables used in the questionnaire includes
brand, market, messages, marketing channels, marketing tactics, creative ap-
proches, o?ers, sales tools and website.This helped to give an overall view of mar-
keting activities carried out in KTDC. The secondary data have been obtained
from company website, brochures etc.The brief history of KTDc, its functions,
products o?ered and strategic intent of company was obtained from company
website.
13
1.4.1 Objectives of study
KTDC uses a marketing strategy to di?erentiate it from its competitors,
but how far it is e?ective is uncertain. The objective of the study are . . .
1. To evaluate the marketing strategy of KTDC
2. To ?nd out the marketing policy adopted by KTDC
3. To examine the marketing policy related to promotional activities of KTDC
4. To ?nd out the threat involved in marketing policy of KTDC
5. To suggest suitable marketing policy
1.4.2 Research design
A research design is a master plan, which speci?es various methods and pro-
cedure for collecting and analysing the needed information. Descriptive research
design is followed.
Sample size : 50
Sampling method: Simple random sampling
Sampling unit: Managers and o?cers of various departments in KTDC
Nature of data: Primary & secondary data
Place of study: KTDC hotels & resorts Ltd, Trivandrum
1.4.3 Sources of data
The sources of data include primary and secondary.
Primary data
The primary data was collected by means of a survey. Questionnaires were
prepared and given to executives and sta?s of various departments. The ques-
tionnaire contains 25 questions which covers various aspects of marketing strategy
like brand, market, messages, marketing channels, marketing tactics, creative ap-
proaches, o?ers, sales tools, data and website. The response of the sample was
recorded on a grade scale of strongly agree, agree, neutral, disagree and strongly
disagree for each question. The ?lled up information was later analyzed to obtain
the interpretations and the ?ndings.
14
Secondary data
The data was collected from websites, journals, reference books, company
records and brochures.
1.4.4 Statistical analysis tools used
The various statistical tools used for the analysis and interpretation of the
data are
1) Percentage analysis
2) Chi square test
3) Correlation analysis
4) Weighted average method.
1.4.5 Period of study
The study was conducted over a period of one month from 11 March 2013
to 11 April 2013.
1.4.6 Hypothesis
Hypothesis 1
H0: There is no signi?cant di?erence between the e?ciency of marketing
channels and marketing strategies of KTDC
H1: There is signi?cant di?erence between the e?ciency of marketing chan-
nels and marketing strategies of KTDC
Hypothesis 2
H0: There is no signi?cant di?erence between gender and opinion about
marketing strategies of KTDC
15
H1: There is signi?cant di?erence between gender and opinion about mar-
keting strategies of KTDC
Hypothesis 3
H0: There is no signi?cant di?erence between marketing tools and market-
ing strategies adopted by KTDC
H1: There is signi?cant di?erence between marketing tools and marketing
strategies adopted by KTDC
Hypothesis 4
H0: There is no association between the opinion about integrating social
media into traditional marketing tactics like direct mail and advertising
H1: There is association between the opinion about integrating social me-
dia into traditional marketing tactics like direct mail and advertising
Hypothesis 5
H0: There is no association between the opinion that sales tools are inte-
grated with brand and marketing campaigns
H1: There is association between the opinion that sales tools are integrated
with brand and marketing campaigns
1.4.7 Scope of study
In every company, the preparation of a marketing plan is vital for moni-
toring and tracking of the companys marketing strategies for a certain product or
service. The marketing plan helps to monitor the progress of marketing strategy
that is being implemented. Analysis of marketing strategy helps to ?nd out ma-
jor competitors, which would enable the ?rm to o?er its appropriately designed
marketing mix and thereby achieving ?rms objective. A well de?ned marketing
strategy can clearly describe which market segments to serve and which to ex-
clude, what product to serve and what not to serve. So the marketing strategy
have vital role in the success of an organisation.
16
KTDC has a signi?cant role in the growth of Kerala tourism industry by
formulating e?ective marketing strategies. This study will evaluate the marketing
strategies implemented in KTDC, to ?nd out the various marketing policies used
by them, to know its e?ectiveness and to suggest suitable policy for the company.
1.4.8 Limitation of study
1.The time frame given for the study is limited.
2.The study is based on qualitative analysis and hence results may be bi-
ased.
3.Detailed information about the company was not be provided, in order
to keep secrecy of company policies
1.5 Chapterisation
Chapter 1 discuss about the background of problem, industry pro?le, com-
pany pro?le, research objectives, research methodology, scope and limitation of
study. Chapter 2 gives in depth information about the literature reviewed for the
study. In Chapter 2 the topics discussed include marketing, marketing mix, mar-
keting segmentation, relationship marketing, marketing strategy, strategic role of
marketing, elements of marketing strategy, types of marketing strategy, marketing
strategy formulation and marketing strategy implementation. Chapter 3 presents
the data collection and analysis. The statistical tools used include Chi square,
Percentage analysis, Correlation coe?cient and Weighted average method. Chap-
ter 4 presents the ?ndings and suggestions of the study. Chapter 5 gives a brief
conclusion of the project.
17
Chapter 2
Literature review
Marketing is often thought to be only selling and advertising. However,
marketing consists of many other functions that can be seen far more important
than just the exchange of goods (Kotler, 1997).
The American Marketing Association de?nes marketing as follows: Market-
ing is the activity, set of institutions, and processes for creating, communicating,
delivering and exchanging o?erings that have value for customers, clients, partners
and society at large.
Today, more than ever, marketing has put emphasis on satisfying the cus-
tomer needs. The customer tends to make decisions on buying a product or a
service based on their perception of the value and satisfaction that the product or
service delivers. From the companys point of view the goal of marketing is to ?rst
build and then manage pro?table customer relationships. In order to achieve this
it is not enough only to ?rst market the product and then sell it but make sure
that the product being sold will meet the standards and be enough to ful?ll the
customers expectations. Therefore the company must be aware and understand
their customers; their needs, wants and demands. That is why many companies
put a lot of e?ort and money into making di?erent kinds of customer surveys ana-
lyzing their customers behavior and learning about the di?erent way of delivering
the superior customer value and satisfaction(Kotler, 1997)
2.1 Marketing mix
The marketing mix is one of the major concepts in modern marketing and
is often brought up in general discussions of marketing. Marketing mix is a set
of marketing tools that a company uses to pursue its marketing objectives in the
target market. When a company is making decisions on marketing they generally
fall into four controllable categories known as the 4 Ps: product, price, place and
promotion(Kotler, 1997).
2.2 Market segmentation
In marketing it is almost impossible to succeed by handling all the con-
sumers as a big one size ?ts for all mass. Market segmentation recognizes that
people di?er in many ways like in their needs, attitudes and lifestyles. Through
market segmentation companies divide their market into smaller segments. All of
the segments have speci?c needs and by dividing the market those needs can be
met more e?ciently with products and services that match their unique needs.
Choosing the right target market is essential and often not that easy. When
de?ning a target market for a product there should be three separate levels. The
?rst level consists of consumers that are willing to buy and who also have the best
premises to buy. The second level consists of consumers who have the premises to
buy but not necessarily the desire. The third level consists of consumers who are
not able to buy but who should be monitored in case there is a change in their
buying readiness (Kotler, 1997).
There are many ways to segment a market. Di?erent segmentation variables
are used, both alone and together, in order to classify consumers into di?erent
segments. Kotler de?nes four major variables that are generally used in marketing;
geographic, demographic, psychographic and behavioral variables.
2.2.1 Geographical segmentation
Geographical segmentation divides the market into di?erent geographical
units such as cities, regions, countries or climate and population density. By this
way when a company is deciding which units to operate and market, they can pay
19
attention to geographical di?erences in needs and wants. For example a major
clothing store chain can pay attention to their selection in stores in northern areas
where it is colder and the need for warmer clothes is greater than in areas located
more south(Kotler, 1997)
2.2.2 Demographic segmentation
Demographic segmentation consists of dividing the market into groups
based on variables such as age, gender, family size, income, occupation, educa-
tion, religion, race and nationality. Demographic factors are the most popular
bases for segmenting customer groups. This is partly because customer wants are
closely linked to variables such as income and age. Also, for practical reasons,
there is often much more data available to help with the demographic segmenta-
tion process (Kotler, 1997).
2.2.3 Psychographic segmentation
Psychographic segmentation divides the market into di?erent groups based
on social class, lifestyle or personality characteristics. People can be in the same
geographical segment meaning that they may for example live in the same city;
they can even be of same age. But one may be a student and another a worker.
This a?ects their lifestyles greatly and therefore also has an e?ect on the buying
behaviors of the people (Kotler, 1997).
2.2.4 Behavioral segmentation
Behavioral segmentation divides buyers into groups based on their knowl-
edge, attitudes, uses and responses to a product. Behavioral segmentation has the
advantage of using variables that are closely related to the product itself. When a
company knows when and why customers are buying their products, they can link
their marketing to that. For example some holidays like on Valentines Day or at
Christmas people tend to buy certain things related to the occasion; many compa-
nies prepare special o?ers and advertisements for those holiday occasions.(Kotler,
1997)
20
2.3 Relationship marketing
Relationship marketing is a form of marketing that emphasizes customer
retention and satisfaction. It switches the focus from the recruitment of new
customer to the retention and recovery of existing ones. Relationship marketing
di?ers from other forms of marketing in that it recognizes the long-term value of
customer relationships and extends communication. The world of marketing today
is more customer-centered. As companies must compete in a more competitive
marketplace they have to know their customers? needs and wants in order to get
new customers, then keep and grow them by delivering greater value for them
(Piercy and Nigel, 2000)
When planning g a relationship marketing strategy one must take into
account that not all customers want a relationship with the company. That is
why it must be carefully considered which types of customers are usually more
likely to repeat their visit in a hotel or a restaurant. Some customers are aware
of the wide choice of competitor products and services and do not want to limit
their options and tie themselves only to one company but prefer to switch their
custom accordingly. Other customers are not interested in any type of relationship
with any company; they simply look at the best quality, value and convenience
available at the time of purchase (Davis, 2007).
2.4 Introduction to marketing strategy
Marketing strategy includes all basic and long-term activities in the ?eld of
marketing. It deals with the analysis of the strategic initial situation of a company,
the formulation, evaluation and selection of market-oriented strategies. Therefore
it contributes to the goals of the company and its marketing objectives.
Strategic planning is a process of developing and maintaining a link between
the organizations goals and capabilities and its changing marketing opportunities.
The marketing strategy is shaped by the overall business goals meaning that it
broadly explains what actions are required to achieve the goals and objectives.
The marketing strategy can be thought of as a game plan that outlines, often in
a list form factors such as the target market, positioning, distribution channels,
price, advertising and possible research and development.
21
2.5 Marketing strategy
According to (Kotler, 1997) The marketing strategy is the way in which the
marketing function organises its activities to achieve a pro?table growth in sales
at a marketing mix level.
A marketing strategy may be de?ned as a plan (usually long term) to achieve the
organisations objectives as follows...
a) By specifying what resources should be allocated to marketing.
b) By specifying how these resources should be used to take advantage of
opportunities which are expected to arise in the future.
A marketing strategy would consist of the following:
a. Identifying markets and customers needs in those markets.
b. Planning products which will satisfy the needs of these markets.
c. Organising marketing resources , so as to match products with customers
in the most e?cient and e?ective way possible, ie, so as to maximise customer sat-
isfaction and the organisations pro?ts or sales revenue (or whatever its objectives
are at the same time).
Choosing the right target market is essential and often not that easy. When
de?ning a target market for a product there should be three separate levels. The
?rst level consists of consumers that are willing to buy and who also have the best
premises to buy. The second level consists of consumers who have the premises to
buy but not necessarily the desire. The third level consists of consumers who are
not able to buy but who should be monitored in case there is a change in their
buying readiness (Kotler, 1997).
Positioning is the act of designing the companys o?ering so that the services
and products are based on some core idea or bene?t. Its meaning is to create a
competitive angle toward the competitors so the positioning of a product can be
based for example on the best or quickest service, accessibility or a?ordability.
This way the product occupies a clear, distinctive and desirable place relative to
competing products in the minds of the target customers.
22
Marketing strategy is mainly indicated by the marketing objectives, cus-
tomer and competitive perspectives and product/market momentum ( i.e. ex-
trapolation of past performance to the future). This forms the basis of marketing
strategy. Marketing strategy is developed at the business unit level (Kotler, 1997).
2.5.1 3 Cs of marketing strategy
Within a given environment, marketing strategy deals essentially with the
interplay of three forces known as the strategic 3 Cs namely the Customer, the
Competition and the Corporation (Davis, 2007).
A good marketing strategy should be characterized by
a) clear market de?nition
b) a good match between corporate strengths and the needs of the market
c) superior performance, relative to the competition, in the key success factors of
the business.
Marketing strategy, in terms of these key constituents, must be de?ned as
an endeavour by a corporation to di?erentiate itself positively from its competitors,
using its relative corporate strengths to better satisfy customer needs in a given
environmental setting.
Based on the interplay of the strategic three Cs, formation of marketing strategy
requires the following 3 decisions:
1. Where to compete. (de?nition of the market). One or various segments.
2. How to compete, that is, it requires a means for competing .
3. When to compete, that is, it requires timing of market entry (Lambin
and Jean-Jacques, 2000).
2.6 Strategic role of marketing
In its strategic role, marketing focuses on a business intentions in a market
and the means and timing of realizing those intentions. The strategic role of mar-
23
keting is quite di?erent from marketing management which deals with developing,
implementing and directing programs to achieve designated intentions. To clearly
di?erentiate between marketing management and marketing in its new role , a
term strategic marketing. has been coined to represent the latter (Gale et al.,
1980).
Strategic marketing is seen as a process consisting of: analyzing environ-
mental, market competitive and business factors a?ecting the corporation and its
business units, identifying market opportunities and threats and forecasting future
trends in business areas of interest for the enterprise , and participating in setting
objectives and formulating corporate and business unit strategies. It also includes
selecting market target strategies for the product markets in each business unit,
establishing marketing objectives as well as developing , implementing and man-
aging the marketing program positioning strategies in order to meet market target
needs. (Gale et al., 1980)
Strategic marketing means looking at the whole of a companys portfolio of
products and markets, and managing the portfolio to achieve the companys overall
goals (Jain and Girish, 1993) Although de?nitions for the term vary, (Hamper and
Baugh, 1990) de?ne marketing strategy as a consistent, appropriate and feasible
set of principles through which a particular company hopes to achieve its longrun
customer and pro?t objectives in a particular competitive environment.
The primary purpose of a marketing strategy is to e?ectively allocate and
coordinate marketing resources and activities to accomplish the ?rms objectives
within a speci?c product market. Therefore decisions about the scope of a mar-
keting strategy involve specifying the target market segment(s) to be pursued and
the product line to be o?ered. Then, ?rms seek a competitive advantage and syn-
ergy, planning a well integrated program of marketing mix elements (Boyd et al.,
1998).
Marketing strategy creates pathways to a desirable future. The output from
such marketing strategy analysis and choice (or strategic marketing decision ) is
a marketing strategy statement.
The strategic analysis of marketing makes reference to the future situation
of products and markets,(Prahalad et al., 2004), that is to say that it tries to guide
24
the company by the correct path and where the company should be in the future.
It is also important to de?ne clearly what should be interpreted for product and
for markets and this is important because marketing strategies are open to inter-
pretations (Piercy and Nigel, 2000). Traditional de?nitions can be broken by new
variables that contribute to rede?ne markets and products. These variables can
be technology, Internet, changing consumers attitudes, social changes, etc..
The term marketing strategy re?ects the companys best opinion as to how
it can most pro?tably apply its skills and resources to the marketplace. It is in-
evitable broad in scope. Marketing strategies are the means by which a company
achieves its marketing objectives and are usually concerned with the 4 p’s. (Mc-
donald, 1999).
2.7 Elements of marketing strategy
A marketing strategy is made of several interrelated elements. The ?rst
and most important is market selection which is directly related to choosing the
markets to be served(Brown and Sommers, 1982). Product planning includes the
speci?c products the company sells, the makeup of the product line, and the de-
sign of individual o?erings in the line. Another element is the distribution system:
the wholesale and retail channels through which the product moves to the people
who ultimately buy it and use it. The overall communications strategy, employs
advertising to tell potential customers about the product trough radio, television,
direct mail, and public print and personal selling to deploy a sales force to call
on potential customers, urge them to buy, and take orders. Finally , pricing, is
an important element of any marketing program and is one of the most directed
marketing elements in the creation of value for shareholders (Doyle, 2000). The
company must set the product prices that di?erent classes of customers will pay
and determine the margins or commissions to compensate agents, wholesalers ,
and retailers for moving to product to ultimate users.
The External, market orientation must be kept in mind since the compa-
nies are guided to the market in a regular way. Reliable data in the strategic
analysis has bigger possibilities of success and bigger chances of optimizing their
results.(Aaker, 2004)
Other issues to take into consideration and which in?uence in marketing
25
strategies are: the understanding of growth markets and Market Share, managing
international realities, implicating empirical research, utilization of methodological
developments, for example, portfolio models, experience curves, scenario analysis,
market structure analysis and technological forecasting; and ?nally getting into
interdisciplinary developments, including marketing, organizational behaviour, ?-
nance and accounting, economics, strategy. (Aaker, 2004)
2.8 Types of marketing strategy
(Sahaf, 1993) has mentioned six strategies that can help a leader attain the
objective of market share protection. They are
2.8.1 Position defense
In this strategy a leader attempts to protect its existing market share
through forti?cation wherein the leader erects barriers around him to stop com-
petitors. The barrier can be in the form of a ?rms distinctive skills capabilities
and marketing assets that not only have greater signi?cance for the customers but
also are di?cult for the competitors to copy.
2.8.2 Mobile defense
This involves constantly shifting resources and developing new strategies
and tactics. A mobile defense is intended to create a moving target that is hard to
successfully attack, while simultaneously, equipping the defender with a ?exible
response mechanism should an attack occur. In business this would entail intro-
ducing new products, introducing replacement products, modifying existing prod-
ucts, changing market segments, changing target markets, repositioning products,
or changing promotional focus. This defense requires a very ?exible organization
with strong marketing, entrepreneurial, product development, and marketing re-
search skills.
26
2.8.3 Flank position
This involves the redeployment of your resources to deter a ?anking attack.
You protect against potential loss of market share in a segment, by strengthen-
ing your competitive position in this segment with new products and other tactics.
2.8.4 Counter o?ensive
Counter o?ensive defense refers to the response of a market leader to a
real attack by a competitor. In fact, these defensive calls for a leader to respond
to a competitors head on attack by identifying the attackers weakness and then
launch a counter attack. Generally a leader actively responds to any move of his
competitors. An e?ective counterattack is to invade the attackers main territory
so that it will have to pull back some troops to defend the territory. Generally
countero?ensive defense works when the attacker has become vulnerable as a re-
sult of the over stretching of resources.
2.8.5 Preemptive defense
A preemptive defense strategy demands to attack potential aggressor before
he starts his o?ence. By pursuing preemptive defense strategy a ?rm intends to
convey let it be known how it will retaliate. Thus such a strategy aims to create a
threat which will prevent any potential challenger from attacking in the ?rst place.
In business the preemptive defense can involve an actual attack on the competition
or merely signalling an intention to ?ght on a particular front and a willingness to
commit the necessary resources to defend against aggression. Product or brand
proliferation is a form of preemptive defense.
2.8.6 Contraction defense
A contraction defense, or strategic withdrawal, requires giving up unten-
able ground to reduce over stretching on the core business which can be defended
against attack. In fact, such a strategy calls for a withdrawal from the most vul-
nerable segments and redirect resources to those that are more defendable.
27
2.9 Marketing strategy formulation
A company should not only know own company but also the behavior of
the competitors potential and the capacity to add and remove it in products,
segments, markets, distribution channels, etc. From my point of view one of the
clearest indicators that a company thinks, and it acts with mentality of strategic
marketing it is the level of depth that makes of its competitors.(Alexander, 1985)
(Bantel, 1997) suggests that particular product/market strategies are ef-
fective at achieving particular performance goals to the exclusion of others. The
synergies between strategy types and implementation capabilities exist and should
be exploited.Creating marketing synergy means that you have a marketing plan
where each element of your plan complements another. The total e?ect achieved
is greater than the sum of the individual e?ects. Synergy creates greater power
and energizes company’s marketing e?orts.
According to (Hrebiniak, 2006)) formulating a consistent strategy is a di?-
cult task for any Management team and making that strategy work (implementing
it throughout the Organization) is even more di?cult. he also pointed out that
managers know more about developing a strategy than they do about executing
it. One of the basic problems he quote is that managers are trained to plan, not
execute plans. Another problem is that some top level managers believe strategy
implementation is below them’, something best left to lower level managers.
According to (Noble, 1999), a myriad of factors can potentially a?ect the
process by which strategic plans are turned into organizational action. Unlike
strategy formulation, strategy implementation is often seen as something of a
craft, rather than a science, and its research history has previously been described
as fragmented and eclectic. Leadership, and speci?cally strategic leadership, is
widely described as one of the key drivers of e?ective strategy implementation.
However, a lack of leadership, and speci?cally strategic leadership by the top
management of the organisation, has been identi?ed as one of the major barriers
to e?ective strategy implementation. Strategic leadership is de?ned as the lead-
ers ability to anticipate, envision, and maintain ?exibility and to empower others
to create strategic change as necessary. Strategic leadership is multi functional,
involves managing through others, and helps organisations cope with change that
seems to be increasing exponentially in todays globalised business environment.
28
2.10 Marketing strategy implementation
Great strategies are worth nothing if they cannot be implemented . Strat-
egy implementation is important but di?cult because implementation activities
take a longer time frame than formulation, involves more people and greater task
complexity, and has a need for sequential and simultaneous thinking on part of
implementation managers. Strategy formulation and implementation are comple-
mentary and logically distinguishable areas of strategic management and part of
the overall process of planning executing and adapting.
Good implementation naturally starts with good strategic input: the soup
is only as good as the ingredients.Whether a strategy itself is consistent and ?t-
ting or not is a key question for successful strategy implementation, but even a
consistent strategy cannot be all things to all people. Strategy programs need
to be expanded to focus on the implementation process. More attention should
be given to breaking down lofty statements into practical, actionable, measurable
activities. The language and methods used to implement need to be simpli?ed,
and consistently deployed. Success in implementation is critical to validating the
investment in strategy in the ?rst place. (Allio, 2005)
2.10.1 Management involvement in strategy implementa-
tion
(Heracleous, 2000) also ?nds that if middle management do not think the
strategy is the right one, or do not feel that they have the requisite skills to imple-
ment it, then they are likely to sabotage its implementation. He refers to groups
within the organization who will inevitably disagree with the strategy. These
groups may sabotage strategy implementation by deliberate actions or inactions,
if implementing the strategy may reduce their power and in?uence. Thus, Herba-
ceous also sees the perceived ability and perceived consistency between personal
goals and the strategic change goals as the decisive soft factor.
(Waldersee and Sheather, 1996) believe that the approach of matching strat-
egy and managers style ignores the causal role of the organizational context or the
29
interaction of personality and context on implementation actions. It is widely
accepted that di?erent strategies need to be implemented in di?erent ways. Their
study demonstrates, at least in a laboratory setting, that strategy plays a signi?-
cant role in shaping managers intentions. Managers can alter their behaviours to
suit di?erent strategy situation.
(Kim and Mauborgne, 1991) point out that subsidiary top managers want
an open process, that is consistent and fair, and that allows for their input to be
heard. In the presence of a so called due (or open) process, subsidiary managers
are motivated to implement global strategies. They feel a strong sense of organi-
zational commitment, trust in head o?ce management, and social harmony with
their head o?ce counterparts. In the absence of such a due and fair process, the
e?ect may be the opposite from the intended one.
(Chimhanzi, 2005) suggests that cross unit working relationships have a key
role to play in the successful implementation of marketing decisions. Implementa-
tion e?ectiveness is a?ected negatively by con?ict and positively by communica-
tion and speci?cally, interpersonal, not written. In turn, these interdepartmental
dynamics are a?ected by senior management support, joint reward systems, and
informal integration.
Firms devoting attention to the alignment of marketing and human re-
sources are able to realize signi?cantly greater successes in their strategy imple-
mentation. Speci?cally, these ?ndings imply that marketing managers should
seek to improve the relationship with their HR colleagues by emphasizing two of
the process based dimensions: joint reward systems and written communication.
(Chimhanzi, 2005)
2.10.2 8S framework of strategy implementation
(Higgins, 2005) sets up an 8s framework of strategy implementation, includ-
ing strategy and purposes structure, resources, shared values, style, sta?, systems
and processes, and strategic performance. The 8s of strategy execution is an ap-
proach that enables senior management to enact, monitor, and assess the cross
functional execution of strategies. The 8s of strategy execution are a revision of
the original McKinsey 7s model. Higgins has deleted skills from the McKinsey
30
framework and he has added resources in their place. He also added strategic
performance in order to help focus the strategy execution process. As always, if
there isnt a good match or alignment among these factors, performance in strategy
implementation will su?er.
According to (Jain, 2009): System approach can be de?ned as, A set of
objects together with the relationships among them and their attributes. System
approach emphasis on the interrelations and interconnections among the com-
ponents of a marketing system in which product, services, money, equipment,
information etc, ?ow from marketers to customer. These ?ows largely determine
the survival and growth of a ?rm. Therefore the focus of system approach is on the
analysis of the marketing ?ows and communication from markers to the customers.
2.11 Summary
From this chapter we get a brief idea about all topics discussed in the same.
Marketing is important wing of any company. marketing mix help to design an
e?ective product. Market segmentation help to identify the target customers. Re-
lationship marketing mainly focus on building relationship between company and
customers. For all entities mentioned here needs an e?ective marketing strategy.
Marketing strategy is a process that can allow an organization to concen-
trate its resources on the optimal opportunities with the goals of increasing sales
and achieving a sustainable competitive advantage. Marketing strategy includes
all basic and longterm activities in the ?eld of marketing that deal with the anal-
ysis of the strategic initial situation of a company and the formulation, evaluation
and selection of market oriented strategies and therefore contributes to the goals
of the company and its marketing objectives.
A good marketing strategy also de?nes the reason why it is unique or com-
pelling to buyers. It should explain what is the bene?t the consumer gets by
purchasing the companys product. It should explain why the customer would
want to buy that particular product from the company and not go to some com-
petitor instead.
Marketing strategy creates pathways to a desirable future. The output from
31
such marketing strategy analysis and choice (or strategic marketing decision) is a
marketing strategy statement. There are several elements of marketing strategy
which is crucial for its formulation, implementation and evaluation. Even though
there are di?erent types of marketing strategy, choosing the best one is vital for
the company.
32
Chapter 3
Data Collection and Analysis
This chapter presents the data collection and analysis.The methodology de-
scribed in Chapter 1 provided the baseline for data gathering. The presentation of
data is systematically linked to the format of self developed questionnaire attached
in the appendix. Descriptive and inferential statistics such as frequencies, tables,
percentage and correlation tests were used in the data analysis and summaries.
Relationships between variables were identi?ed using frequencies, Chi square and
correlation.
The tools used for statistical analysis are
1) Percentage analysis
2) Chi square test
3) Correlation coe?cient
4) Weighted average method
3.1 Percentage Analysis
Percentage analysis is the method to represent raw streams of data as a
percentage (a part in 100 - percent) for better understanding of collected data.
Table 3.1: Gender wise classi?cation
Gender No of respondents Percentage
Male 36 72%
Female 14 28%
Figure 3.1: Gender wise classi?cation
3.1.1 Gender wise classi?cation
Analysis
It can be seen from the table. 3.1 as well as from the ?gure. 3.1 that out of
50 respondents 72% are male and 28% are females.
Inference
Out of 50 respondents 72% are male. Majority of the respondents of the
study are males.
34
3.1.2 Age wise classi?cation
Table 3.2: Age wise classi?cation
age No of respondents Percentage
20-30 4 8%
31-40 28 56%
41& above 18 36%
Figure 3.2: Age wise classi?cation
Analysis
It can be seen from the Table 3.2 as well as from the above Fig. 3.2 that
out of 50 respondents 8% of the respondents have the age between 20 and30 and
56% of them were aged between 31 and 40. Remaining 36% have age more than
41.
Inference
56% of the respondents have age between 31 and 40. Majority of the re-
spondents are in the age group of 31 and 40.
35
3.1.3 Quali?cation wise classi?cation
Table 3.3: Quali?cation wise classi?cation
Quali?cation No of respondents Percentage
Plus two 2 4%
Degree 30 60%
Technical 6 12%
PG 12 24%
Figure 3.3: Quali?cation wise classi?cation
Analysis
It can be analyzed from the Table 3.3 out of 50 respondents 4% of the
respondents have the quali?cation of plus two and 60% of them are graduates.
12% of them were technically quali?ed and remaining 24% are post graduates.
Inference
Majority of the respondents are graduates.
36
3.1.4 Experience wise classi?cation
Table 3.4: Experience wise classi?cation
Experience No of respondents Percentage
Below 1 year 1 2%
1-5 years 11 22%
6-10 years 16 32%
Above 10 years 22 44%
Figure 3.4: Experience wise classi?cation
Analysis
It can be analyzed from the Table 3.4 that 2% of the respondents have an
experience of below 1 year in the organization. 22% of them have an experience
between 1 to 5 years and 32% of them have an experience of 6 to 10 years. 44%
of the employees have an experience of more than 10 years.
Inference
44% of the employees have an experience of more than 10 years. This
indicates that majority of the KTDC executives are more experienced.
37
3.1.5 Income wise classi?cation
Table 3.5: Income wise classi?cation
Income No of respondents Percentage
5000-10000 2 4%
10001-20000 18 36%
20001-30000 17 34%
Above 30000 13 26%
Figure 3.5: Income wise classi?cation
Analysis
It can be seen from the Table 3.5 as well as from the above Fig. 3.5 that
out of 50 respondents 4% of the respondents have an income between 5000 and
10000 and 36% of them have an income between 10001 and 20000. 34% earns
between 20001 and 30000 it can be seen that 26% of them earn more than 30001
as their income.
Inference
Majority of the respondents have an income between 10001 and 20000.
38
3.1.6 About the clarity in communication
Table 3.6: About the clarity in communication
Response No of respondents Percentage
Strongly agree 12 24
Agree 18 36
Neutral 2 4
Disagree 14 28
Strongly disagree 4 8
Figure 3.6: About the clarity in communication
Analysis
As from the Table 3.6 it can be seen that 24% of the respondents strongly
agree that their brand clearly communicates what they are about and conveys the
highest value which they deliver. 36% of them agree with the same. Here only
4% of the respondents became neutral. 28% of the respondents disagree and 8%
of the respondents strongly disagree with the same. According to them the brand
does not clearly communicates what they are about and conveys the highest value
they deliver.
Inference
36% of the respondents agree that their brand clearly communicates what
they are about and conveys the highest values they deliver. This indicates that
the brand used by KTDC conveys the intended message.
39
3.1.7 Usage of brand identity
Table 3.7: Usage of brand identity
Response No of respondents Percentage
Strongly agree 10 20
Agree 27 54
Neutral 2 4
Disagree 9 18
Strongly disagree 2 4
Figure 3.7: Usage of brand identity
Analysis
As from the Table 3.7 it can be seen that 20% of the respondents strongly
agree that their brand identity is being used in all media. 54% of the respondents
agree with it. Here only 4% of the respondents became neutral. 18% of the
respondents disagree and 8% of the respondents strongly disagree that their brand
identity is not being used in all media.
Inference
54% of the respondents agree that their brand identity is being popularly
used in all media. This indicates that brand messages used are consistently deliv-
ered in all media and thereby creating a popular brand identity.
40
3.1.8 Awareness about pro?table customers
Table 3.8: Awareness about pro?table customers
Response No of respondents Percentage
Strongly agree 24 48
Agree 12 24
Neutral 1 2
Disagree 8 16
Strongly disagree 5 10
Figure 3.8: Awareness about pro?table customers
Analysis
From the Table 3.8 it is seen that 48% of the executives and managers
strongly agreed to the statement that they know their most pro?table customers
and they are targeting prospects that look like their best customers. 24% also
accords to the same. While 16% disagreed to the statement and 10% strongly
disagrees to the same.
Inference
KTDC is fully aware about its most pro?table customers and they are
targeting such customers and prospects. This shows that KTDC is aware about
its pro?table customers and by targeting such customers, KTDC is increasing its
pro?t.
41
3.1.9 Awareness about customers changing buying behav-
ior
Table 3.9: Awareness about customers changing buying behavior
Response No of respondents Percentage
Strongly agree 6 12
Agree 21 42
Neutral 7 14
Disagree 8 16
Strongly disagree 8 16
Figure 3.9: Awareness about customers changing buying behavior
Analysis
42% agreed to the statement that they are aware about customers changing
buying behavior. 12% strongly agrees to it, 16% disagrees to the statement and
another 16% strongly disagree to the same.
Inference
Majority of the sta?s know that customers have changed the way they
?nd, buy or use KTDCs services and KTDC has adjusted the marketing plan
accordingly. This shows that KTDC changes its marketing plan based on customer
buying behavior.
42
3.1.10 Opinion on up-selling and cross selling
Table 3.10: Opinion on up-selling and cross selling
Response No of respondents Percentage
Strongly agree 5 10
Agree 31 62
Neutral 3 6
Disagree 7 14
Strongly disagree 4 8
Figure 3.10: Opinion on up-selling and cross selling
Analysis
From the Table 3.10 it is seen that 62% of the sta?s agreed to the state-
ment that they are actively up-selling and cross selling services to their current
customers. 14% disagrees to it while 10% strongly agrees to the statement. 8%
strongly disagrees to it.
Inference
Majority of the sta?s agrees to the statement which shows that the sales
tools and marketing plan adopted are very well supporting the sales activity.
KTDC has got active sales agents who enhances the up-selling and cross selling
activity.
43
3.1.11 Key marketing messages that is consistently deliv-
ered in media
Table 3.11: Key marketing messages that is consistently delivered in media
Response No of respondents Percentage
Strongly agree 7 14
Agree 21 42
Neutral 10 20
Disagree 7 14
Strongly disagree 5 10
Figure 3.11: Key marketing messages
Analysis
From the Table 3.11 it is seen that 42% of sta?s agreed to the statement
that they have key marketing messages that they are consistently delivering in all
media. 14% strongly agrees to the statement and an equal number disagrees to it.
10% strongly disagrees to the statement. 20% remained neutral to the statement.
Inference
KTDC have key marketing messages that they are consistently delivering
in all media. This ensures wider reach and visibility to the brand, o?ers, services
etc
44
3.1.12 Experience customers have while interacting with
employees
Table 3.12: Experience customers have while interacting with employees
Response No of respondents Percentage
Strongly agree 17 34
Agree 15 30
Neutral 2 4
Disagree 10 20
Strongly disagree 6 12
Figure 3.12: Experience customers have while interacting with employees
Analysis
Table 3.12 shows that 34% of the employees strongly agreed to the state-
ment that the messages delivered in all media matches the experience customers
have when they interact with KTDCs sta?. 30% agreed to it while an equal
number disagreed to the same. Only 12% strongly disagreed to the statement.
Inference
The experience customers have while interacting with the employees matches
with the key messages that is being delivered in all media. The sta?s of KTDC
are well trained and customer friendly. Training given to employees by KTDC
ensures that a standardized service is given to all customers.
45
3.1.13 Targeting of messages to speci?c market segments
Table 3.13: Targeting of messages to speci?c market segments
Response No of respondents Percentage
Strongly agree 12 24
Agree 18 36
Neutral 4 8
Disagree 10 20
Strongly disagree 6 12
Figure 3.13: Targeting of messages to speci?c market segments
Analysis
From the Table 3.13 it is seen that 36% of the employees agreed to the
statement that they are tailoring messages to speci?c market segments when they
have an opportunity to do so. 24% strongly agreed to it, while 20% disagreed
to the statement. 12% strongly disagreed to the statement while 8% remained
neutral about the same.
Inference
Majority of the employees agreed to the statement that they are tailoring
messages to speci?c to market segments when they have an opportunity to do so.
This means marketing tactics used are ?exible.
46
3.1.14 Opinion on shifting marketing to new channels
Table 3.14: Opinion on shifting marketing to new channels
Response No of respondents Percentage
Strongly agree 18 36
Agree 22 44
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.14: Opinion on shifting marketing to new channels
Analysis
As from the Table 3.14 it can be seen that 36% of the respondents strongly
agree that it is time to shift some or more of their marketing to new channels
such as social media and mobile marketing. 44% of them agree with the same.
Here only 2% of the respondents became neutral. 16% of the respondents disagree
with this and it 2% of the respondents strongly disagree that it is time to shift
some or more of their marketing to new channels such as social media and mobile
marketing.
Inference
36% of the respondents agree that it is time to shift some or more of their
marketing to new channels such as social media and mobile marketing. This shows
that KTDC has realized the importance of new marketing channels and they are
in phase to shift to some of their marketing to new channels.
47
3.1.15 Opinion on maximizing the value
Table 3.15: Opinion on maximizing the value
Response No of respondents Percentage
Strongly agree 5 10
Agree 29 58
Neutral 2 4
Disagree 9 18
Strongly disagree 5 10
Figure 3.15: Opinion on maximizing the value
Analysis
As from the Table 3.15 it can be seen that 10% of the respondents strongly
agree that they are maximizing the value of the proprietary channels they control,
such as newsletters, invoices, product packaging and inserts, vehicles and build-
ings. 58% of them agree with the same. Here only 4% of the respondents became
neutral. 18% of the respondents disagree and 10% of the respondents strongly
disagree with this.
Inference
58% of the respondents agree that they are maximizing the value of the
proprietary channels they control, such as newsletters, invoices, product packaging
and inserts, vehicles and buildings. KTDC has got several marketing tools and
they are utilizing it e?ectively.
48
3.1.16 Opinion on marketing tactics
Table 3.16: Opinion on marketing tactics
Response No of respondents Percentage
Strongly agree 18 36
Agree 20 40
Neutral 1 2
Disagree 9 18
Strongly disagree 2 4
Figure 3.16: Opinion on marketing tactics
Analysis
It can be seen from the Table 3.16, that 36% of the respondents strongly
agree that the marketing tactics are generating the best results- leads, conversions
or sales at the lowest cost.40% of them agree with the same. Here only 2% of
the respondents became neutral. 18% of the respondents disagree and 4% of the
respondents strongly disagree with this.
Inference
36% of the respondents agree that the marketing tactics are generating the
best results- leads, conversions or sales at the lowest cost. This indicates that the
marketing tactics used is very e?ective.
49
3.1.17 Integration of social media into traditional market-
ing
Table 3.17: Integration of social media into traditional marketing
Response No of respondents Percentage
Strongly agree 21 42
Agree 20 40
Neutral 1 2
Disagree 4 8
Strongly disagree 4 8
Figure 3.17: Integration of social media into traditional marketing
Analysis
From the Table 3.17 it can be seen that 42% of the respondents strongly
agree that they are integrating social media into traditional marketing tactics like
direct mail and advertising. 40% of them agree with the same. Here only 2% of
the respondents became neutral. 8% of the respondents disagree and 8% of the
respondents strongly disagree with this.
Inference
42% of the respondents agree that they are integrating social media into
traditional marketing tactics like direct mail and advertising. This shows that
KTDC understands the importance of social media in marketing its products and
they are integrating the same into traditional marketing tactics like direct mail
and advertising.
50
3.1.18 Opinion on creativity used
Table 3.18: Opinion on creativity used
Response No of respondents Percentage
Strongly agree 13 26
Agree 27 54
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.18: Opinion on creativity used
Analysis
From the above it can be seen that 26% of the respondents strongly agree
that their creative is attention getting and it stands out in a crowded market place.
54% of them agree with the same. Only 2% of the respondents became neutral.
16% of the respondents disagree and 2% of the respondents strongly disagree with
this.
Inference
54% of the respondents agree that their creative is attention getting and it
stands out in a crowded market place. The creative designs or features used in ads,
brochure etc are attention getting and it is unique which makes it to di?erentiate
from its competitors.
51
3.1.19 Clarity of marketing materials used
Table 3.19: Clarity of marketing materials used
Response No of respondents Percentage
Strongly agree 15 30
Agree 17 34
Neutral 5 10
Disagree 9 18
Strongly disagree 4 8
Figure 3.19: Clarity of marketing materials used
Analysis
As from the above it can be seen that 30% of the respondents strongly agree
that their call to action is loud and clear and their prospects know exactly what
to do next after reviewing their marketing materials. 36% of them agree with
the same. Here 10% of the respondents became neutral. 18% of the respondents
disagree and 8% of the respondents strongly disagree with this.
Inference
36% of the respondents agree that their call to action is loud and clear.
Their prospects know exactly what to do next after reviewing their marketing
materials. This indicates that messages conveyed in marketing material are ap-
propriate and very clear.
52
3.1.20 Resonance of o?ers
Table 3.20: Resonance of o?ers
Response No of respondents Percentage
Strongly agree 25 50
Agree 20 40
Neutral 0 0
Disagree 4 8
Strongly disagree 1 2
Figure 3.20: Resonance of o?ers
Analysis
As from the above it can be seen that 50% of the respondents strongly agree
that their o?er is resonating with prospects and more and more people saying yes.
40% of them agree with the same. Here none of the respondents became neutral.
8% of the respondents disagree and 2% of the respondents strongly disagree with
this.
Inference
50% of the respondents strongly agree that their o?er is resonating with
prospects and more and more people are saying yes. The o?ers are made based
on the customer buying behavior and they are e?ective.
53
3.1.21 E?ectiveness of o?ers
Table 3.21: E?ectiveness of o?ers
Response No of respondents Percentage
Strongly agree 8 16
Agree 32 64
Neutral 1 2
Disagree 8 16
Strongly disagree 1 2
Figure 3.21: E?ectiveness of o?ers
Analysis
As from the above it can be seen that 16% of the respondents strongly agree
that their o?ers showcase their products, 64% of them agree with this. Here only
2% of the respondents became neutral. 16% of the respondents disagree that their
o?ers showcase their products and remaining 2% exhibit a strong disagreement
regarding this.
Inference
64% of the respondents agree that their o?ers showcase their products. The
brochures, ads and other marketing materials used showcases di?erent products of
KTDC. These are consistently delivered in all media which ensures that marketing
messages delivered are same.
54
3.1.22 Role of o?ers in the product value
Table 3.22: Role of o?ers in the product value
Response No of respondents Percentage
Strongly agree 8 16
Agree 28 56
Neutral 2 4
Disagree 7 14
Strongly disagree 5 10
Figure 3.22: Role of o?ers in the product value
Analysis
As from the above it can be seen that 16% of the respondents strongly agree
that their o?er delivers real value to the prospect. 56% of them agree with this.
Here only 4% of the respondents became neutral. 14% of the respondents disagree
and 10% of the respondents strongly disagree that their o?er delivers real value
to the prospect.
Inference
56% of the respondents agree that their o?er delivers real value to the
prospect. The o?ers made are based on the buying behavior of customer and they
are e?ective.
55
3.1.23 Sales brochure attributes
Table 3.23: Sales brochure attributes
Response No of respondents Percentage
Strongly agree 13 26
Agree 29 58
Neutral 2 4
Disagree 3 6
Strongly disagree 3 6
Figure 3.23: Sales brochure attributes
Analysis
It can be seen from the above that 26% of the respondents strongly agree
that their sales brochures displays and sales demonstration tools are accurate,
complete and up to date. 58% of them agree with this. Here only 4% of the
respondents became neutral. 6% disagrees to the statement and an equal number
strongly disagree to the same
Inference
58% of the respondents agree that their sales brochures displays and sales
demonstration tools are accurate, complete and up to date.
56
3.1.24 Integration of sales tools
Table 3.24: Integration of sales tools
Response No of respondents Percentage
Strongly agree 19 38
Agree 12 24
Neutral 8 16
Disagree 7 14
Strongly disagree 4 8
Figure 3.24: Integration of sales tools
Analysis
As from the above it can be seen that 38% of the respondents strongly agree
that their sales tools are integrated with their brand and marketing campaigns.24%
of them agree with the same. Here 16% of the respondents became neutral. 14%
of the respondents disagree and 8% of the respondents strongly disagree with this.
Inference
38% of the respondents strongly agree that their sales tools are integrated
with their brand and their marketing campaigns. This indicates that marketing
strategy is made by inter connecting marketing elements.
57
3.1.25 About the need of new tools
Table 3.25: About the need of new tools
Response No of respondents Percentage
Strongly agree 10 20
Agree 25 50
Neutral 2 4
Disagree 10 20
Strongly disagree 3 6
Figure 3.25: About the need of new tools
Analysis
As from the above it can be seen that 20% of the respondents strongly agree
that they need new tools to educate prospects about their industry or products.
50% of them agree with the same. Here only 4% of the respondents became
neutral. 20% of the respondents disagree and 6% of the respondents strongly
disagree with this.
Inference
50% of the respondents agree that they need new tools to educate prospects
about their industry or products. New tools can be used to increase brand visibility
and also to increase awareness about the products among customers.
58
3.1.26 About the capturing of customer and prospect data
Table 3.26: About the capturing of customer and prospect data
Response No of respondents Percentage
Strongly agree 9 18
Agree 18 36
Neutral 4 8
Disagree 12 24
Strongly disagree 7 14
Figure 3.26: About the capturing of customer and prospect data
Analysis
As from the above it can be seen that 18% of the respondents strongly agree
that they are capturing customer and prospect data to build a robust marketing
database. 36% of them agree with the same. Here 8% of the respondents became
neutral. 24% of the respondents disagree and 14% of the respondents strongly
disagree with this.
Inference
36% of the respondents agree that they are capturing customer and prospect
data to build a robust marketing database. This indicates that KTDC uses rela-
tionship marketing to retain customers.
59
3.1.27 About the compiling of email address
Table 3.27: About the compiling of email address
Response No of respondents Percentage
Strongly agree 13 26
Agree 30 60
Neutral 3 6
Disagree 2 4
Strongly disagree 2 4
Figure 3.27: About the compiling of email address
Analysis
As from the above it can be seen that 26% of the respondents strongly agree
that they are compiling email address for an ongoing sales dialogue. 60% of them
agree with the same. Here 6% of the respondents became neutral. 4% strongly
disagreed to it and an equal number disagreed to the same.
Inference
60% of the respondents agree that they are compiling email address for an
ongoing sales dialogue. This indicates that KTDC is using relationship marketing
to retain customers.
60
3.1.28 About the website
Table 3.28: About the website
Response No of respondents Percentage
Strongly agree 17 34
Agree 18 36
Neutral 1 2
Disagree 10 20
Strongly disagree 4 8
Figure 3.28: About the website
Analysis
As from the above it can be seen that 34% of the respondents strongly agree
that their website is build around the needs and interest of its visitors. 36% of
them agree with the same. Here only 2% of the respondents became neutral. 20%
of the respondents disagree and 8% of the respondents strongly disagree with this.
Inference
36% of the respondents agree that their website is build around the needs
and interest of its visitors. KTDC has build its website in such a way that required
informations are easily accessible for the visitors.
61
3.1.29 SEO of website
Table 3.29: SEO of website
Response No of respondents Percentage
Strongly agree 13 26
Agree 15 30
Neutral 4 8
Disagree 13 26
Strongly disagree 5 10
Figure 3.29: SEO of website
Analysis
30% of the employees agreed that the KTDCs site is fully optimized for
search engines. 26% strongly agreed to the statement and an equal number dis-
agreed to the same. 10% strongly disagreed to it and 8% remained neutral.
Inference
Majority of the employees agrees that KTDCs site is fully optimized for
search engines. This shows that KTDC has given importance for internet market-
ing.
62
3.1.30 Focusing of marketing campaigns
Table 3.30: Focusing of marketing campaigns
Response No of respondents Percentage
Strongly agree 11 22
Agree 19 38
Neutral 2 4
Disagree 10 20
Strongly disagree 8 16
Figure 3.30: Focusing of marketing campaigns
Analysis
As from the above it can be seen that 22% of the respondents strongly agree
that they are understand the factors buyer consider when selecting their product
or service and they are focusing their marketing campaigns on those factors. 38%
of them agree with this. Here only 4% of the respondents became neutral. 20% of
the respondents disagree and 16% of the respondents strongly disagree with this.
Inference
38% of the respondents agree that they are understand the factors buyer
consider when selecting their product or service and they are focusing their mar-
keting campaigns on those factors. This shows that KTDC caters to the needs of
customers.
63
3.2 Chi Square test
The Chi-Square distribution is merely the distribution of the sum of the
squares of a set of normally distributed random variables. Its value stems from
the fact that the sum of random variables from any distribution can be closely
approximated by a normal distribution as the sum includes a greater and greater
number of samples. Thus the test is widely applicable for all distributions.
The chi- square test is one of the simplest and most widely used non-
parametric test in statistical work. The symbol ? is the Greek letter Chi. The chi
square test was ?rst used by Karl Pearson in the year 1990. The quantity of ?
2
describes the magnitude of the discrepancy between theory and observation. It is
de?ned where O refers to the observed frequencies and E refers to the expected
frequencies.
3.2.1 Test of independence
With the help of chi-square test we can ?nd out whether two or more at-
tributes are associated or not. In order to test whether or not the attributes are
associated, we take the null hypothesis that there is no association in the attributes
under study or, in other words , the attributes are independent.
Table 3.31: Contingency Table
Response SA A N D SD Total
Strongly agree 4 5 1 2 0 12
Agree 15.42 26 2 6.58 2 52
Neutral 4.5 4 0 1.5 3 13
Disagree 0 5 2 6 1 14
Strongly Disagree 2 2 1 2.16 1.84 9
Total 25.92 42 6 18.24 7.84 100
In the Table 3.31
SA= Strongly Agree
A= Agree
N= Neutral
D= Disagree
SD= Strongly Disagree
64
The response given vertically in the Table 3.31 refers to that of marketing
channel and response given horizontally in the Table 3.31 refers to that of mar-
keting strategies.
Hypothesis 1
Ho: There is no signi?cant di?erence between e?ciency of marketing chan-
nel and marketing strategies.
H1: There is signi?cant di?erence between e?ciency of marketing channel
and marketing strategies
Table 3.32: Observation Table for Hypothesi 1
OBSERVED EXPECTED (O-E) (O ?E)
2
CHI-CONTRIBUTION
4 3.11 0.89 0.7921 0.254695
5 5.04 -0.04 0.0016 0.000317
1 0.72 0.28 0.0784 0.108889
2 2.188 -0.188 0.035344 0.016154
0 0.94 -0.94 0.8836 0.94
15.42 13.478 1.942 3.771364 0.279816
26 21.84 4.16 17.3056 0.792381
2 3.12 -1.12 1.2544 0.402051
6.58 9.48 -2.9 8.41 0.887131
2 4.076 -2.076 4.309776 1.057354
4.5 3.36 1.14 1.2996 0.386786
4 5.46 -1.46 2.1316 0.390403
0 0.78 -0.78 0.6084 0.78
1.5 2.37 -0.87 0.7569 0.319367
3 1.02 1.98 3.9204 3.843529
0 3.62 -3.62 13.1044 3.62
5 5.88 -0.88 0.7744 0.131701
2 0.84 1.16 1.3456 1.601905
6 2.55 3.45 11.9025 4.667647
1 1.09 -0.09 0.0081 0.007431
2 2.33 -0.33 0.1089 0.046738
2 3.78 -1.78 3.1684 0.838201
1 0.54 0.46 0.2116 0.391852
2.16 1.61 0.55 0.3025 0.187888
1.84 0.705 1.135 1.288225 1.82727
23.77951
65
Calculated Chi- Square value from the table 3.32 is 23.77951
Degree of freedom = (r-1) (c-1) = (5-1) (5-1) = 16
Table value of Chi square for 4 degree of freedom at 5% level of signi?cance
= 24.996
Inference
When tested at 5% level of signi?cance it is found that the table value
is higher than the calculated value. So null hypothesis is accepted. Hence it is
concluded that there is no signi?cant di?erence between e?ciency of marketing
channel and marketing strategies.
Figure 3.31: Chart of observed and expected values
Hypothesis 2
Ho: There is no signi?cant di?erence between gender and opinion about
marketing strategy.
H1: There is signi?cant di?erence between gender and opinion about mar-
keting strategy.
Observed and expected value for testing the current hypothesis can be re-
ferred from Table 3.33
66
Table 3.33: Analysis Table
Observed Expected (O-E) (O ?E)
2
Chi-contribution
16.4 18.66 -2.26 5.1076 0.273719
29 30.24 -1.24 1.5376 0.050847
4 4.32 -0.32 0.1024 0.023704
16.76 13.132 3.628 13.162384 1.002314
5.84 5.64 0.2 0.04 0.007092
9.52 7.25 2.27 5.1529 0.710745
13 11.76 1.24 1.5376 0.130748
2 1.68 0.32 0.1024 0.060952
1.48 5.1 -3.62 13.1044 2.56949
2 2.192 -0.192 0.036864 4.829611
9.659222
Chi- Square value calculated from the Table 3.33 is 9.659222
Degree of freedom =(r-1) (c-1) =(2-1) (5-1) = 4
Table value ?
2
for 4 degree of freedom at 5% level of signi?cance = 9.488
Inference
When tested at 5% level of signi?cance it is found that the table value is
less than the calculated value. So null hypothesis is rejected. Hence it is concluded
that there is signi?cant di?erence between gender and opinion about marketing
strategy.
3.2.2 Test of Goodness of Fit
Chi- Square test enables us to see how well the assumed theoretical distri-
bution ?ts to the observed data. When some theoretical distribution ?tted to the
given data, we are always interested in knowing as to how well this distribution
?t with the observed data. The Chi- Square test can give answer to this. If the
calculated value of Chi- Square is less than the table value at a certain level of sig-
ni?cance, the ?t is considered to be a good one which means that the divergence
between the observed and expected frequencies is attributable to ?uctuation of
sampling. But if the calculated value of ?
2
is greater than its table value, the ?t
is not considered to be good one.
67
Hypothesis 3
H0: There is goodness-of-?t between the opinion about integration of social
Media into traditional marketing tactics like direct mail and advertisement.
H1: There is no goodness-of-?t between the opinion about integration of
social Media into traditional marketing tactics like direct mail and advertisement.
Refer Figure 3.31 for this hypothesis testing.
Table 3.34: ?
2
goodness-of-?t test for observed counts in variable
Category Observed Test proportion Expected ?-contribution
1 21 0.2 10 12.1
2 20 0.2 10 10
3 1 0.2 10 8.1
4 7 0.2 10 0.9
5 1 0.2 10 8.1
N=50 39.2
Degree of freedom = (n-1) = (5-1) = 4
Chi-Square value obtained from the Table 3.34 is 39.2
p- value 0.000
Table value ?
2
for 4 degree of freedom at 5% level of signi?cance = 9.488
Inference
When tested at 5% level of signi?cance it is found that the table value is
less than the calculated value. So null hypothesis is rejected.
Hence it is concluded that there is no goodness-of-?t between the opinion
about integration of rural Media into traditional marketing tactics like direct mail
and advertisement
68
Figure 3.32: Chart of contribution to chi-square value by category
3.3 Correlation Coe?cient
In statistics, dependence refers to any statistical relationship between two
random variables or two sets of data. Correlation refers to any of a broad class of
statistical relationships involving dependence.
The most familiar measure of dependence between two quantities is the
Pearson product-moment correlation coe?cient, or ”Pearson’s correlation coe?-
cient”, commonly called simply ”the correlation coe?cient”. It is obtained by
dividing the covariance of the two variables by the product of their standard de-
viations.
Correlation coe?cient is an algebraic method of measuring correlation. Un-
der this method, we measure correlation by ?nding a value known as the coe?cient
of correlation using an appropriate formula. Correlation coe?cient is a numerical
value. It shows the degree or the extent of correlation between two variables.
Hypothesis 4
Ho: There is no association between opinion about sales tools are integrated
with brand and marketing strategies
H1: There is association between opinion about sales tools are integrated
with brand and marketing strategies
69
Refer Table 3.35 for this hypothesis testing.
In the Table 3.35
x= Sales tools
y= Marketing Strategies.
Table 3.35: Observation Table
Response x y xy x
2
y
2
Strongly agree 19 25.92 492.48 361 671.8464
Agree 12 42 504 144 1764
Neutral 8 6 48 64 36
Disagree 7 18.24 127.68 49 332.6976
Strongly Disagree 4 7.84 31.36 16 61.4656
Total 50 100 1203.52 634 2866.01
Inference
It can be seen that the calculated coe?cient of correlation is 0.597438687.
Hence we accept the null hypothesis. There is no association between opinion
about sales tools are integrated with brand and marketing strategies.
70
3.4 Weighted Average Method
Weighted average is an average in which each quantity to be averaged is
assigned a weight. These weightings determine the relative importance of each
quantity on the average. Weightings are the equivalent of having that many like
items with the same value involved in the average.
In this study we have taken four factors whose prime importance have to
be understood. The factors considered are communication, marketing channel,
search engine and marketing campaign. By using weighted average method the
ranking of factors is done.
Table 3.36: Attribute Response Table
Sl.No Attributes x1 x2 x3 x4 Total
1 Strongly agree 24 10 20 38 92
2 Agree 36 58 30 24 148
3 Neutral 4 4 16 16 40
4 Disagree 28 18 26 14 86
5 Strongly Disagree 8 10 8 8 34
Total 100 100 100 100 400
In the Table 3.36
x
1
= Communication,
x
2
= Marketing channel,
x
3
= Search engine,
x
4
= Marketing campaign.
Formula for weighted average method is
Weighted average = Wx/W
W = Number of respondents
x = Rating given by the respondents.
71
Based on the formula Table 3.37 is tabulated.
Table 3.37: Weighted Average of Attributes
x W x
1
Wx
1
x
2
Wx
2
x
3
Wx
3
x
4
Wx
4
1 5 24 120 10 50 20 100 38 190
2 4 36 144 58 232 30 120 24 96
3 3 4 12 4 16 16 48 16 48
4 2 28 56 18 36 26 52 14 28
5 1 8 8 10 10 8 8 8 8
Total 100 340 100 344 100 328 100 370
Inference
From the table 3.37, it is found that combined weighted average of attributes
i.e, communication, marketing channel, search engine and marketing campaign
are 3.4, 3.44, 3.28 and 3.7 respectively. Hence marketing campaign is ranked 1st,
marketing channel is ranked 2nd , communication ranked 3rd, and search engine
ranked 4th. This analysis shows that marketing campaign is the pivotal entity of
marketing strategies.
72
Chapter 4
Findings and Suggestions
This chapter presents the ?ndings and suggestions. The major ?ndings
derived from data analysis and interpretation are presented here. The suggestions
discussed here will provide a framework for KTDC to develop a new marketing
plan.
4.1 Findings
On analysis, the following trends and pro?les were noted.
4.1.1 Demographic pro?le
• 72% of the respondents are males.
• 60% of the respondents are graduates.
• 56% of the respondents are aged between 31 and 40.
• 44% of the respondents have more than 10 years of experience.
• 36% of the respondents earn between 10001 and 20000.
4.1.2 Findings related to marketing strategies
• 36% of the respondents agree that their brand clearly communicates what
they are and conveys the highest value they deliver. This indicates that the
brand used by KTDC conveys the intended message.
• 54% of the respondents agree that KTDCs brand identity is being popularly
used in all media. The major medias used by KTDC are Travel magazines,
brochures, television commercials, internet (social media, websites, other
travel forums) etc
• KTDC is fully aware about its most pro?table customers and they are target-
ing such customers and prospects. This shows that KTDC is aware about its
pro?table customers and by targeting such customers, KTDC is increasing
its pro?t.
• 42% of the respondents agree that the customers changed the way ?nd, buy,
or use KTDCs product or service and they have adjusted their marketing
plan accordingly. The Internet has changed everything. Population with
Internet access use it to decide where to travel, where to live, where to work
or where to establish a business. Hence KTDC considers internet as their
major marketing priority.
• 62% of the respondents agree that they are actively up selling and cross sell-
ing products and services to their current customers. eg:- The tourists vis-
iting Kovalam gets brochure about Thenmala Eco Tourism, Bolgatti Palace
and other tourists attraction in Kerala. Here there is active cross selling of
products.
• 42% of the respondents agree that they have three to ?ve key marketing
messages that they are consistently delivered in all media. KTDC mainly
showcases the location, facilities provided and other related items. These
are consistently delivered in all media.
• 34% of the respondents strongly agree that their marketing messages match
the experience customers have when they interact with their sta?. The
training given to the employees ensures that they deliver a standardized
service to all customers.
• 36% of the respondents agree that they are tailoring messages to speci?c
segments when they have the opportunity to do so. This means marketing
tactics used are ?exible. KTDC has got di?erent products and each caters
to a speci?c market segment. eg: Premium Hotels for upper class customers,
Tamarind Easy Hotels for middle class customers etc.
74
• 36% of the respondents agree that it is time to shift some or more of their
marketing to new channels such as social media and mobile marketing. Pop-
ulation which has access to internet use the same for almost all activities.
Whether it be a job, a place to travel or anything, they rely on internet.
Social media has now become a platform for discussing and sharing the
travel experience. So it became necessary to shift some of marketing to new
channels such as social media and mobile marketing.
• 58% of the respondents agree that they are maximizing the value of the pro-
prietary channels they control, such as newsletters, invoices, product pack-
aging and inserts, vehicles and buildings. KTDC has got several marketing
tools and they are utilizing it e?ectively.
• 36% of the respondents agree that the marketing tactics are generating the
best results- leads, conversions or sales at the lowest cost. This indicates
that the marketing tactics used is very e?ective.
• 42% of the respondents agree that they are integrating social media into
traditional marketing tactics like direct mail and advertising. This shows
that KTDC understands the importance of social media in marketing its
products and they are integrating the same into traditional marketing tactics
like direct mail and advertising.
• 54% of the respondents agree that their creative is attention getting and it
stands out in a crowded market place. The creative designs or features used
in ads, brochure etc are attention getting and it is unique which makes it to
di?erentiate from its competitors. Products are also designed in such a way
that it is attention getting. eg: Rain tourism ads, Eco Tourism ads etc
• 36% of the respondents agree that their call to action is loud and clear.
Their prospects know exactly what to do next after reviewing their market-
ing materials. This indicates that messages conveyed in marketing material
are appropriate and very clear. eg: KTDC Hotel Tari? brochure contains
major tourist sites in Kerala, KTDC hotels near to the same, tari?, facil-
ities provided in hotels, contact numbers, addresses, road map etc... The
marketing materials contains all necessary information at a glance.
• 50% of the respondents strongly agree that KTDCs o?er is resonating with
prospects and more and more people saying yes. KTDCs o?ers are tailored
75
according to the market segment. The o?ers are made based on the customer
buying behavior and they are e?ective.
• 64% of the respondents agree that their o?ers showcase their products. The
brochures, ads and other marketing materials used showcases di?erent prod-
ucts of KTDC. These are consistently delivered in all media which ensures
that marketing messages delivered are same.
• 56% of the respondents agree that their o?er delivers real value to the prod-
uct. KTDC hotels gives more value to the customers. The amenities, facili-
ties etc provided are worth the money spend by each customer. In order to
cater to all market segments, KTDC hotels are designed accordingly. Eg:-
Premium Hotels, Tamarind Easy Hotels, Budget Hotels etc.
• 58% of the respondents agree that their sales brochures displays and sales
demonstration tools are accurate, complete and up to date. This shows that
KTDC updates its sales displays and sales demonstration tools frequently,
thereby making them matching with the market needs.
• Majority of the of the respondents strongly agree that their sales tools are
integrated with their brand and their marketing campaigns. This indicates
that marketing strategy is made by inter connecting marketing elements.
• 50% of the respondents agree that they need new tools to educate prospects
about their industry or products. New tools can be used to increase brand
visibility and also to increase awareness about the products among cus-
tomers.
• 60% of the respondents agree that they are compiling email address for an
ongoing sales dialogue. This is a part of strategy used by KTDC to retain
customers. Customer acquisition is more costly than customer retention.
By using emails, new products and o?ers are send to the customers. This is
done to get the attention of customers for an ongoing sales dialogue which
may create a repeat customer in future.
• 36% of the respondents agree that their website is build around the needs
and interest of its visitors. KTDC has build its website in such a way that
required informations are easily accessible for the visitors.
• 30% of the respondents agree that their site is fully optimized for search
engines. Search engine optimization helps the website to be listed in ?rst
76
page of search engines. This shows that KTDC has given importance for
internet marketing.
• 38% of the respondents agree that they are understand the factors buyer
consider when selecting their product or service and they are focusing their
marketing campaigns on those factors. Tourists want to have a great expe-
rience once they visit the place, so when they look in to the ads, they want
to have similar experiences which the people portrayed in the ad had. Eg:-
In Rain tourism ad, a couple enjoying the rain in house boat was shown. So
naturally when a potential customer look at the same, he wants to have a
similar experience and that is the purpose of his visit.
• Marketing channels used are in accordance with the marketing strategies
implemented. Marketing channels used include print media, television, mar-
keting campaigns etc. The main goal of marketing strategy is to increase
the pro?t. By using the marketing channels e?ectively the goal is achieved.
• Social media is integrated with traditional marketing tactics like direct mail
and advertising. Social media has now become a platform for sharing travel
experience and hence Social media is integrated with traditional marketing
tactics like direct mail and advertising.
• There is signi?cant di?erence between gender and opinion about market-
ing strategies. Majority of the respondents are males, so in this study we
have got opinion about marketing strategies mainly from a male employee
perspective.
• Out of the marketing tools used marketing campaign is the pivotal entity.
Marketing campaign has always been a important tool to market Kerala
Tourism activities. Marketing campaign helped to increase the awareness
about Kerala Tourism among potential and existing customers.
4.2 Suggestions
From the above ?ndings following suggestions are put forward.
To improve the internal marketing
Based on the discussions in Sections 3.1.8, 3.1.9 and 3.1.12,
• Company should have sta? meetings to keep the employees up dated on
the hotels marketing objectives and upcoming marketing actions. Give clear
77
instructions and authorization so that the employees are aware of their duties
and what they are allowed to do in di?erent customer related situations.
• Lower to middle-level front-line o?cials of Central and States Tourism De-
partments including those posted in tourist o?ces are usually in regular
contact with the tourists may be given accessibility-speci?c training.
To improve the customer retention practices
Based on the discussions in Sections 3.1.20, 3.1.26 and 3.1.27 .
• In order to take into account the seasonality in customer ?ows, market seg-
mentation should be done more e?ectively. More e?ort should be put into
taking care of the regular customers.Partner with the expert players in the
tourism industry as a whole to gain from their experience.
• Develop a loyal customer program: Gather and maintain a list of items or
other bonuses that the loyal customer can receive; discount on the room
rate, better room type, chocolates/ other items delivered to the room before
arrival.
• By contacting the customer for example by email and thanking for the feed-
back and promising to take it into account of their feedback makes the
customer feel more in contact with the hotel. Responding to the feedback
also gives an image of the hotel that it wants to be involved.
To improve the e?ective utilization of marketing channels
Based on the discussions in Sections 3.1.14, 3.1.30, 3.1.24 and 3.1.23.
• Plan and develop di?erent kinds of marketing campaigns and o?ers. Create
and develop new campaigns on monthly bases. They can be derived for
example from the di?erent seasons or holidays. They can be directed to
speci?c customer group. Market these campaigns on the company’s web
pages. Create and develop new campaigns on monthly bases.
• Descriptive brochures and images about tourism activities, which relate to
its special qualities and is tailored to target markets, should be prepared for
use in destination marketing vehicles.
• Optimize the marketing materials for mobile as 20% of all web tra?c comes
from mobile.
78
• Visitor information kiosks can o?er the information visitors need 24 hours a
day/7 days a week. Besides having kiosks at the rest areas, they should be
placed strategically throughout the county so that they can cross-promote
activities, events, attractions and amenities. The more visitors see there is
to do in the county, the longer they will stay and the more money they will
spend. Every site should cross-sell to other sites, attractions and amenities.
Kiosks come in all shapes and sizes - they should be designed to ?t the
character of the town or location. Maintain and stock them regularly. Keep
the information up-to-date.
• Promote activities, not just scenic vistas and ambiance. When people see
others doing fun activities in a great setting, it is easy for them to imagine
themselves there too. Promote people over places.
• Promote experiences over locations. Location is always second to the ac-
tivity, people are looking for things to do ?rst, then they will consider the
general location second. Visitors do not really care about boundaries - it
does not matter if they are in a speci?c region, county, district, city or town.
• Promote the EXPERIENCE.Brands are perceptions, and the perception is
based on what people expect to experience. Base the brand on activities
that is what people are looking for. Great photography that shows people
having a great time helps your potential visitors imagine themselves doing
the same thing.
To improve the Internet marketing
Based on the Sections 3.1.17, 3.1.27 and 3.1.28.
• Internet has a pivotal role in getting more customers; hence the full potential
of Internet should be used. The following suggestions will help for the same.
a) Customers have a mindset to book or check in hotels that ?rst come in
the google search and map results. Hence dominate google local search and
map results.
b) Social media should be used to give relevant updates. Communicate with
social media audience via relevant and engaging content.
c) Email marketing continues to be an e?ective tool for staying top of mind
with customers which leads to better retention. Email campaigns are also
helpful. Also include a link to company website in the email signatures.
79
d) Be active in relevant travel & hotel communities.
e )Create videos and distribute online, also add the same to own website.
f) Conduct online contests, give discounts and exclusive packages to winners.
80
Chapter 5
Conclusions
In this project the e?ectiveness of marketing elements such as brand, mar-
keting messages, marketing channels, marketing tactics, creative approaches, of-
fers, sales tools, data and website had been studied from the view point of em-
ployees. From the study it is understood that the organisation needs to improve
its marketing channels and marketing tactics. This project strongly recommends
that the organisation should improve its internal marketing, innovative customer
retention practices, Internet marketing and use of marketing channels. Results of
analyses in this project report show that any organization in travel and tourism
industry should update its facilities. It should take steps forward to gain new cus-
tomer groups. It should also adopt a new approach to keep the customers satis?ed
and to retain them.
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Appendix
Questionnaire
Title: A study on internal perspective of marketing strategies im-
plemented by KTDC
Personal details
Gender: Male Female
Age: 20-30 31-40 41 and above
Quali?cation: Plus Two Degree Technical PG
Experience: Less than 1 year 1-5 years 6-10 years Above 10
Years
Income: 5000-10000 10001-20000 20001-30000 Above 30000
1.The brands used by KTDC clearly communicates what they are about
and convey the highest value they deliver
Strongly agree Agree Neutral Disagree Strongly disagree
2.The brand identity is being popularly used in all media
Strongly agree Agree Neutral Disagree Strongly disagree
3.KTDC know its most pro?table customers and they are targeting prospects
that look like their best customer
Strongly agree Agree Neutral Disagree Strongly disagree
4.Customers changed the way they ?nd, buy, or use KTDCs product or
service and KTDC have adjusted its marketing plan accordingly
Strongly agree Agree Neutral Disagree Strongly disagree
5.KTDC is actively up-selling and cross-selling products and services to
their current customers
Strongly agree Agree Neutral Disagree Strongly disagree
6.KTDC have three to ?ve key marketing messages that theyre consistently
delivering in all media
Strongly agree Agree Neutral Disagree Strongly disagree
7.These messages match the experience customers have when they interact
with KTDCs sta?
Strongly agree Agree Neutral Disagree Strongly disagree
8.KTDC is tailoring messages to speci?c market segments when they have
the opportunity to do so
Strongly agree Agree Neutral Disagree Strongly disagree
9.It is time to shift some or more of KTDCs marketing to new channels
such as social media and mobile marketing
Strongly agree Agree Neutral Disagree Strongly disagree
10.KTDC is maximizing the value of the proprietary channels they control,
such as newsletters, invoices, product packaging and inserts, vehicles, and build-
ings
Strongly agree Agree Neutral Disagree Strongly disagree
11.Marketing tactics are generating the best results leads, conversions, or
sales at the lowest cost
Strongly agree Agree Neutral Disagree Strongly disagree
II
12.KTDC is integrating social media into traditional marketing tactics like
direct mail and advertising
Strongly agree Agree Neutral Disagree Strongly disagree
13.KTDCs creative is attention-getting. It stands out in a crowded mar-
ketplace
Strongly agree Agree Neutral Disagree Strongly disagree
14.KTDCs call to action is loud and clear. KTDCs prospect know exactly
what to do next after reviewing our marketing materials
Strongly agree Agree Neutral Disagree Strongly disagree
15.KTDCs o?er is resonating with prospects. More and more people are
saying yes
Strongly agree Agree Neutral Disagree Strongly disagree
16.KTDCs o?ers showcase their product
Strongly agree Agree Neutral Disagree Strongly disagree
17.KTDC o?er delivers real value to the prospect
Strongly agree Agree Neutral Disagree Strongly disagree
18.KTDCs sales brochures, displays, and sales demonstration tools are ac-
curate, complete, and up to date
Strongly agree Agree Neutral Disagree Strongly disagree
19.Sales tools are integrated with KTDCs brand and their marketing cam-
paigns
Strongly agree Agree Neutral Disagree Strongly disagree
III
20.New tools are required to educate prospects about our industry or prod-
uct
Strongly agree Agree Neutral Disagree Strongly disagree
21.KTDC is capturing customer and prospect data to build a robust mar-
keting database
Strongly agree Agree Neutral Disagree Strongly disagree
22.KTDC is compiling email addresses for an ongoing sales dialogue
Strongly agree Agree Neutral Disagree Strongly disagree
23.KTDCs website is built around the needs and interests of their visitors
Strongly agree Agree Neutral Disagree Strongly disagree
24.KTDCs site is fully optimized for search engines
Strongly agree Agree Neutral Disagree Strongly disagree
25.KTDC understand the factors buyers consider when selecting their prod-
uct or service and they are focusing their marketing campaigns on those factors
Strongly agree Agree Neutral Disagree Strongly disagree
IV
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