Description
It intially describes the current marketshare of the company and the sustainability of current strategy. It then highlights the avenues of opportunity and also the strengths of the company.It then describes the various value added services such as the global sim card and online gifting service.It then talks about the front end and back end operations of the these two value added services. It finally talks about the revenue which is generated from these two services and also the promotional activities adopted for the same.
Current Market Share
Total US Market (Inbound)
MMT Share (2.55%) from USA Total MMT Sales Revenue
114300000
2914650 3238500
Air Ticketing(90%)= $ 2914650
Travel Services=$ 291465
Stock Taking
• Over Reliance on US markets (90%) • Very less contribution from travel services • Very low market penetration viz-a-viz growth rate of industry (around 30%)
Leading to low Revenues
Sustainability of Current Strategy
Avenues of Opportunities
• Need to look at new markets -Outbound -Domestic (In phased manner) • Need to look at new segments -IT sector could be a huge potential -Tie up with foreign universities for students travelling abroad. • Need to offer value added services -Mainly because of higher margins/profitability
Opportunities
Particulars
Rapid Growth in High Potential Higher Margin Outbound From UK and South On Travel International East Asia Related Services Market ? ?
Good Brand Name
Strengths
Largest Player In India Well Settled US markets ? ?
?
In depth Knowledge of Target Segment Statergic Alliances
?
?
New country segments
• UK
– Has a population estimate of 1.5 million – 8% NRIs visit India
• Far east
– 9% of the NRIs visit India – Highly preferred destination for Education – The manufacturing companies setting up facility in India
• EURO countries €
– Target countries using Euro currency – European people visiting India is very high (15 million visitors every year)
PESTEL analysis (UK)
Political • System is stable • Encouragement of foreign investment Social • Immigration growth rates at 3 to 4% • Continuous increase in Indian population in UK Economic • Projection for GDP growth at a change of 2 – 4 % • Air travel contributes about £10.2 billion to GDP, 1.4% of the total. Environmental • Terrorist threat to UK & recent hijacking issues
PESTEL analysis (Australia)
Political • System is stable • Encouragement of Indian students for education
Social • Indians bound to Australia increases by about 37% every year • Continuous increase in Indian students in Australia
Economic • Contribution to world GDP at just over 9% • Air travel & Freight – 9.2% of Australian economy.
Environmental • Racist threats to Indians in Australia
New target customers
• IT professionals
– Travel to US, UK in Higher class – Propensity to income high
• Students
– Indian students prefer countries like Australia, USA, UK & other European countries for pursuing higher studies
• Foreign nationals visiting India for education
– Students from Far east visit India for their education – From countries like Indonesia, Philippines etc.
Value added services
? Global SIM card sourcing Reasons: Image related brand extension possible (Dealing with hospitability and aviation business) Growing number of IT professionals travelling outside India Evolving trend in Indian students to study in foreign universities Increasing customer satisfaction (Bundling) Increasing roaming costs ? Online gift-giving service Reasons: Increasing size of the NRI segment Increase disposable income of the NRIs which leads to greater gift giving capacity Expanding the service offering (New product-current segment)
Front end operation: Global SIM card sourcing
Select origin and destination country Select tentative time for stay in destination country Choose service provider (Ratings given alongside by previous users) Choose plan (From a suggested list) looking into the call rates and fixed charges
Select mode of shipping
Select documents to be provided at point of delivery of SIM to support above Give personal details (Name, age, qualification, purpose of visit, etc.) Choose number of SIM cards required
Select point of delivery
Select payment mode
Authenticate and Pay
Front end operation: Online gift-giving service
Select class of gifts (For whom u want to give the gifts) Select the type of gift Select date of delivery Give address of point of delivery Option to select more gifts or forward towards payment Select payment mode
Select country of delivery
Choose price range Read gift description and reviews about the gifts in this range Choose gift and add to cart
Purchase gift box Personalize gift (Like embedding a message on the item)
Authenticate and Pay
Select number of items
Website
Back End Operations – SIM CARD & GIFTS
• Strategic Alliances with Service Providers & Gifting Sites • Logistic Partner for smooth delivery • Call Centre Support for Consumers
Revenue Generation-Gifts
Total Revenue=Commission on Gift items+ Float Money.
Expected Revenue:
Market Penetration=10% of First time outbound travelers Expected Gift ticket size= Rs 1000/- ($ 25) Commission rate=15%= Rs 150 (approx $ 4) Total Revenue=$4*10% of outbound in the year 2004= $ 2.16 million (10% of 5.4 million=.54*$4)+$ 20000 (Float @ a average of 15 days and 3.5%)
Revenue Projection SIM Cards
Total Revenue=Commission on SIM cost and recharge. Expected Revenue: Market Penetration=30% of First time outbound travelers Expected SIM Cost= Rs 1600/- ($ 40) Commission rate=3%= Rs 48 (approx $ 1. 2) Total Revenue=$4*30% of outbound in the year 2004= $ 2 million
approx
(30% of 5.4 million=1.62*$40*3%)
The Change
• Increase in customer traffic due to first mover advantage in Gifts/SIMs -New Customers likely to stay put if targeted through better service. • New markets and segments to increase the revenue and market share globally. • Increase in Revenues
– On value added services – By increase in Market share and customer base by the new strategy of Value added service.
Promotion – All target segments
• Google Ads
– AdWords – AdSense
• Advertisements
– Airport lounges
• Inflight promotions
– Flight tickets – Magazines
Promotion – All target segments
• Travel Agents
– Banners, pamphlets in offices – Globally
• Partner websites
– Logistics
– Service providers
• Websites
– Incredible India – India Brand Equity Foundation
Promotion - Specific
• IT professionals
– Offer communication through HRs
• Indian students (to foreign countries)
– Liaison centres – Colleges/Universities
References
•http://www.bankofengland.co.uk/publications /speeches/2005/speech260.pdf •http://www.oef.com/Free/pdfs/Sumavuk.PDF •http://www.asiatraveltips.com/news09/133TravelResearch.shtml
THANK YOU
doc_473788783.pptx
It intially describes the current marketshare of the company and the sustainability of current strategy. It then highlights the avenues of opportunity and also the strengths of the company.It then describes the various value added services such as the global sim card and online gifting service.It then talks about the front end and back end operations of the these two value added services. It finally talks about the revenue which is generated from these two services and also the promotional activities adopted for the same.
Current Market Share
Total US Market (Inbound)
MMT Share (2.55%) from USA Total MMT Sales Revenue
114300000
2914650 3238500
Air Ticketing(90%)= $ 2914650
Travel Services=$ 291465
Stock Taking
• Over Reliance on US markets (90%) • Very less contribution from travel services • Very low market penetration viz-a-viz growth rate of industry (around 30%)
Leading to low Revenues
Sustainability of Current Strategy
Avenues of Opportunities
• Need to look at new markets -Outbound -Domestic (In phased manner) • Need to look at new segments -IT sector could be a huge potential -Tie up with foreign universities for students travelling abroad. • Need to offer value added services -Mainly because of higher margins/profitability
Opportunities
Particulars
Rapid Growth in High Potential Higher Margin Outbound From UK and South On Travel International East Asia Related Services Market ? ?
Good Brand Name
Strengths
Largest Player In India Well Settled US markets ? ?
?
In depth Knowledge of Target Segment Statergic Alliances
?
?
New country segments
• UK
– Has a population estimate of 1.5 million – 8% NRIs visit India
• Far east
– 9% of the NRIs visit India – Highly preferred destination for Education – The manufacturing companies setting up facility in India
• EURO countries €
– Target countries using Euro currency – European people visiting India is very high (15 million visitors every year)
PESTEL analysis (UK)
Political • System is stable • Encouragement of foreign investment Social • Immigration growth rates at 3 to 4% • Continuous increase in Indian population in UK Economic • Projection for GDP growth at a change of 2 – 4 % • Air travel contributes about £10.2 billion to GDP, 1.4% of the total. Environmental • Terrorist threat to UK & recent hijacking issues
PESTEL analysis (Australia)
Political • System is stable • Encouragement of Indian students for education
Social • Indians bound to Australia increases by about 37% every year • Continuous increase in Indian students in Australia
Economic • Contribution to world GDP at just over 9% • Air travel & Freight – 9.2% of Australian economy.
Environmental • Racist threats to Indians in Australia
New target customers
• IT professionals
– Travel to US, UK in Higher class – Propensity to income high
• Students
– Indian students prefer countries like Australia, USA, UK & other European countries for pursuing higher studies
• Foreign nationals visiting India for education
– Students from Far east visit India for their education – From countries like Indonesia, Philippines etc.
Value added services
? Global SIM card sourcing Reasons: Image related brand extension possible (Dealing with hospitability and aviation business) Growing number of IT professionals travelling outside India Evolving trend in Indian students to study in foreign universities Increasing customer satisfaction (Bundling) Increasing roaming costs ? Online gift-giving service Reasons: Increasing size of the NRI segment Increase disposable income of the NRIs which leads to greater gift giving capacity Expanding the service offering (New product-current segment)
Front end operation: Global SIM card sourcing
Select origin and destination country Select tentative time for stay in destination country Choose service provider (Ratings given alongside by previous users) Choose plan (From a suggested list) looking into the call rates and fixed charges
Select mode of shipping
Select documents to be provided at point of delivery of SIM to support above Give personal details (Name, age, qualification, purpose of visit, etc.) Choose number of SIM cards required
Select point of delivery
Select payment mode
Authenticate and Pay
Front end operation: Online gift-giving service
Select class of gifts (For whom u want to give the gifts) Select the type of gift Select date of delivery Give address of point of delivery Option to select more gifts or forward towards payment Select payment mode
Select country of delivery
Choose price range Read gift description and reviews about the gifts in this range Choose gift and add to cart
Purchase gift box Personalize gift (Like embedding a message on the item)
Authenticate and Pay
Select number of items
Website
Back End Operations – SIM CARD & GIFTS
• Strategic Alliances with Service Providers & Gifting Sites • Logistic Partner for smooth delivery • Call Centre Support for Consumers
Revenue Generation-Gifts
Total Revenue=Commission on Gift items+ Float Money.
Expected Revenue:
Market Penetration=10% of First time outbound travelers Expected Gift ticket size= Rs 1000/- ($ 25) Commission rate=15%= Rs 150 (approx $ 4) Total Revenue=$4*10% of outbound in the year 2004= $ 2.16 million (10% of 5.4 million=.54*$4)+$ 20000 (Float @ a average of 15 days and 3.5%)
Revenue Projection SIM Cards
Total Revenue=Commission on SIM cost and recharge. Expected Revenue: Market Penetration=30% of First time outbound travelers Expected SIM Cost= Rs 1600/- ($ 40) Commission rate=3%= Rs 48 (approx $ 1. 2) Total Revenue=$4*30% of outbound in the year 2004= $ 2 million
approx
(30% of 5.4 million=1.62*$40*3%)
The Change
• Increase in customer traffic due to first mover advantage in Gifts/SIMs -New Customers likely to stay put if targeted through better service. • New markets and segments to increase the revenue and market share globally. • Increase in Revenues
– On value added services – By increase in Market share and customer base by the new strategy of Value added service.
Promotion – All target segments
• Google Ads
– AdWords – AdSense
• Advertisements
– Airport lounges
• Inflight promotions
– Flight tickets – Magazines
Promotion – All target segments
• Travel Agents
– Banners, pamphlets in offices – Globally
• Partner websites
– Logistics
– Service providers
• Websites
– Incredible India – India Brand Equity Foundation
Promotion - Specific
• IT professionals
– Offer communication through HRs
• Indian students (to foreign countries)
– Liaison centres – Colleges/Universities
References
•http://www.bankofengland.co.uk/publications /speeches/2005/speech260.pdf •http://www.oef.com/Free/pdfs/Sumavuk.PDF •http://www.asiatraveltips.com/news09/133TravelResearch.shtml
THANK YOU
doc_473788783.pptx