RAYAT SHIKSHAN SANSTHA S KARMAVEER BHAURAO PATIL COLLEGE, VASHI.

A PROJECT REPORT ON MARKETING STRATEGIES OF MAKE MY TRIP.COM

SUBMITTED BY, SUMIT KAMBLE (231)

SUBMITTED TO PROF. ARCHANA SALUNKHE DATE : 08-02-2012

INDEX SR NO. CONTENTS PG NO.

CHAPTER 1 INTRODUCTION TO THE STUDY

1.1 OBJECTIVE 1.2 RESEARCH METHODLOGY

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CHAPTER 2 PROFILE OF THE ORGANISATION

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CHAPTER 3

CONCEPTUAL FRAMEWORK 1.1MARKETING STRATEGY (4PS)

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CHAPTER 4

DATA ANALYSIS AND INTERPETATION

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CHAPTER 5 CONCLUSION

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CHAPTER 1

INTRODUCTION TO THE STUDY

In this prospectus, we refer to information regarding the travel service industry and our competitors from market research reports, analyst reports and other publicly available sources. Makemytrip.com is one of the best leading online portal and it is a profitable organization. It is one of the major players in India. After a hugely successful 2006, where makemy trip.com established its leadership position in India they are now embarking on an ambitious growth plan for 2010-11. From being the number one online travel company Makemy trip.com now aims to become the largest travel company in India both offline and online. We have designed our websites to provide our customers with a user-friendly experience. According to comScore, www.makemytrip.com was the second most visited travel website in India (after the Indian Railways website) in each of the years from 2007 to 2009 and had an average of over 1.7 million unique visitors per month in 2009. In fiscal year 2010, 2.0 million transactions executed through our websites accounted for approximately 94.5% of our total transactions. We have built an advanced and secure technology platform, which integrates our sales, customer service and fulfillment operations. Our technology platform is scalable and can be upgraded to handle increased traffic and complexity of products with limited additional investment.

1.1 OBJECTIVE

y y y y

To be the market leader and to sustain in this sector. To increase the market share as the tourism market is increasing in India. Its aim is to be the world leader in the tourism industry. To provide the consumer every detail and the every information required about the destination and do all their booking sitting at home while using online portal.

1.2 RESEARCH METHODLOGY

The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management.

Data collection: Data collection depends on the research design (quantitative or qualitative design). Tutors India helps in a survey tool validation and also online and face to face data collection process. They help to conduct surveys [in person Interviews: Formal to informal; structured to unstructured; focus group discussion, observations, self-administered questionnaire, diaries, citizen report cards, Delphi techniques, expert judgments, online surveys, secondary sources such as journals, newspaper articles, annual reports, government sources such as census, budgets, policies, procedures, etc. Quantitative consulting Benefits: The preparation of a successful dissertation involves conducting effective research, analyzing data and results presentation all which require a high level of statistical expertise. We at tutorsindia provide solution from formulating methodology to the results presentation. You can approach stats work with any or all of the following steps: Framing your Research Methodology Study design Sample size calculation and justification Development of questionnaire
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Statistical techniques DATA REQUIRED

Primary Data: Data that has been collected from first-hand-experience is known as primary data. Primary data has not been published yet and is more reliable, authentic and objective. Primary data has not been changed or altered by human beings; therefore its validity is greater than secondary data.

Secondary Data: Data collected from a source that has already been published in any form is called as secondary data. The review of literature in nay research is based on secondary data. Mostly from books, journals and periodicals.

DATA SOURCES

Sources of Primary Data: Sources for primary data are limited and at times it becomes difficult to obtain data from primary source because of either scarcity of population or lack of cooperation. Regardless of any difficulty one can face in collecting primary data; it is the most authentic and reliable data source. Following are some of the sources of primary data. Experiments: Experiments require an artificial or natural setting in which to perform logical study to collect data. Experiments are more suitable for medicine, psychological
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studies, nutrition and for other scientific studies. In experiments the experimenter has to keep control over the influence of any extraneous variable on the results.

Survey: Survey is most commonly used method in social sciences, management, marketing and psychology to some extent. Surveys can be conducted in different methods. Questionnaire: is the most commonly used method in survey. Questionnaires are a list of questions open-ended or close -ended for which the respondent give answers. Questionnaire can be conducted via telephone, mail, live in a public area, or in an institute, through electronic mail or through fax and other methods. Interview: Interview is a face-to-face conversation with the respondent. In interview the main problem arises when the respondent deliberately hides information otherwise it is an in depth source of information. The interviewer can not only record the statements the interviewee speaks but he can observe the body language, expressions and other reactions to the questions too. This enables the interviewer to draw conclusions easily. Observations: Observation can be done while letting the observing person know that he is being observed or without letting him know. Observations can also be made in natural settings as well as in artificially created environment.

Secondary Data:

Data collected from a source that has already been published in any form is called as secondary data. The review of literature in nay research is based on secondary data. Mostly from books, journals and periodicals.

Sources of Secondary Data:

Secondary data is often readily available. After the expense of electronic media and internet the availability of secondary data has become much easier.

Published Printed Sources: There are varieties of published printed sources. Their credibility depends on many factors. For example, on the writer, publishing company and time and date when published. New sources are preferred and old sources should be avoided as new technology and researches bring new facts into light. Books: Books are available today on any topic that you want to research. The use of books starts before even you have selected the topic. After selection of topics books provide insight on how much work has already been done on the same topic and you can prepare your literature review. Books are secondary source but most authentic one in secondary sources. Journals/periodicals: Journals and periodicals are becoming more important as far as data collection is concerned. The reason is that journals provide up-to-date information which at times books cannot and secondly, journals can give information on the very
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specific topic on which you are researching rather talking about more general topics. Magazines/Newspapers: Magazines are also effective but not very reliable. Newspaper on the other hand is more reliable and in some cases the information can only be obtained from newspapers as in the case of some political studies.

Published Electronic Sources: As internet is becoming more advance, fast and reachable to the masses; it has been seen that much information that is not available in printed form is available on internet. In the past the credibility of internet was questionable but today it is not. The reason is that in the past journals and books were seldom published on internet but today almost every journal and book is available online. Some are free and for others you have to pay the price. E-journals: E-journals are more commonly available than printed journals. Latest journals are difficult to retrieve without subscription but if your university has an e-library you can view any journal, print it and those that are not available you can make an order for them. General websites; Generally websites do not contain very reliable information so their content should be checked for the reliability before quoting from them. Weblogs: Weblogs are also becoming common. They are actually diaries written by different people. These diaries are as reliable to use as personal written diaries.

Unpublished Personal Records: Some unpublished data may also be useful in some cases.

Diaries: Diaries are personal records and are rarely available but if you are conducting a descriptive research then they might be very useful. The Anne Franks diary is the most famous example of this. That diary contained the most accurate records of Nazi wars. Letters: Letters like diaries are also a rich source but should be checked for their reliability before using them. Government Records: Government records are very important for marketing, management, humanities and social science research. Census Data/population statistics: Health records, Educational institutes records Public Sector Records: NGO's survey data, Other private companies records

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F) Research methods Types of research Experiments: People who take part in research involving experiments might be asked to complete various tests to measure their cognitive abilities (e.g. word recall, attention, concentration, reasoning ability etc.) usually verbally, on paper or by computer. The results of different groups are then compared. Participants should not be anxious about performing well but simply do their best. The aim of these tests is not to judge people or measure so-called intelligence, but to look for links between performance and other factors. If computers are used, this has to be done in such a way that no previous knowledge of computers is necessary. So people should not be put off by this either. Surveys: Surveys involve collecting information, usually from fairly large groups of people, by means of questionnaires but other techniques such as interviews or telephoning may also be used. There are different types of survey. The most straightforward type (the one shot survey ) is administered to a sample of people at a set point in time. Another type is the before and after survey which people complete before a major event or experience and then again afterwards. Questionnaires: Questionnaires are a good way to obtain information from a large number of people and/or people who may not have the time to attend an interview or take part in experiments. They enable people to take their time, think about it and come back to the questionnaire later. Participants can state their views or feelings privately without worrying about the possible reaction of the researcher.
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Unfortunately, some people may still be inclined to try to give socially acceptable answers. People should be encouraged to answer the questions as honestly as possible so as to avoid the researchers drawing false conclusions from their study.

Interviews: Interviews are usually carried out in person i.e. face-to-face but can also be administered by telephone or using more advance computer technology such as Skype. Sometimes they are held in the interviewee s home, sometimes at a more neutral place. It is important for interviewees to decide whether they are comfortable about inviting the researcher into their home and whether they have a room or area where they can speak freely without disturbing other members of the household. Studies using the Delphi method: The Delphi method was developed in the United States in the 1950s and 1960s in the military domain. It has been considered particularly useful in helping researchers determine the range of opinions which exist on a particular subject, in investigating issues of policy or clinical relevance and in trying to come to a consensus on controversial issues. The objectives can be roughly divided into those which aim to measure diversity and those which aim to reach consensus.

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CHAPTER 2 : PROFILE OF THE ORGANISATION

` Make MyTrip.com, Indias leading online travel company was founded in the year 2000 by Mr. Deep Kalra. ` Largest e-commerce company in its year of launch 2000. ` Customer base of two million customers and 50% market share till 2009. ` Offices in 20 Cities In India ` In India it came in the year 2005. ` International offices in New-York, Sydney, San Francisco ` 24 x 7 customer support. ` In 2007 makemytrip.com won the award of best online travel agency in India from Galileo Express travel world.

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Corporate Information It is a public limited company by shares incorporated in Mauritius. It was incorporated as International Web Travel Private Limited, a private company limited by shares, on April 28, 2000 and subsequently changed the name to MakeMyTrip Limited and converted to a public company. registered office is located at the offices of Multiconsult Limited at Rogers House, 5 President John Kennedy Street, Port Louis, Mauritius. principal executive offices are located at 103 Udyog Vihar, Phase 1, Gurgaon, Haryana 122016, India. Our principal website address is www.makemytrip.com.

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Corporate Structure

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MARKET SURVEY

Travel and Tourism Industry in India The Indian travel and tourism industry is large and growing rapidly. According to the WTTC, Indias travel and tourism industry contributed Rs. 1,741.2 billion to Indias GDP in 2009 and is expected to contribute Rs. 1,970.1 billion to Indias GDP in 2010. India is one of the fastest growing countries in the world in terms of its travel and tourism industry. The Indian travel and tourism industry is expected to grow at an annual rate of 7.8% over the next 10 years. Further, the WTTC expects that, as a result of the strong growth rate in the Indian travel and tourism industry, over the next 10 years, India will become one of the top 10 travel and tourism markets in the world in terms of the absolute size of its market.
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The Government of India has also recognized the importance of the travel and tourism industry and has over the past several years enacted or announced several initiatives to give further impetus to the industry: The Incredible India campaign helps showcase India as a leading tourist destination globally; The provision of one-month tourist visas on arrival for citizens of five countries (i.e., Japan, Finland, New Zealand, Singapore and Luxembourg); An expenditure budget of Rs. 11.2 billion allocated to the Ministry of Tourism in the 2010 Indian government Budget (a 9.7% increase over the previous year) of which about Rs. 4.7 billion has been earmarked for building new infrastructure facilities such as tourist reception centers and refurbishing monuments; Support of an open-skies policy in India; Upgrade of existing or construction of new airports in major cities, including Mumbai, Delhi, Chennai Hyderabad and Bangalore; The construction of international convention centers in cities including Delhi, Mumbai, Goa, Jodhpur, Udaipur, Cochi, Agra and Jaipur to attract more business travelers to India; and Air transportation policies permitting airlines in India which have been in operation on domestic routes for over five years to fly on international routes

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Overview of the Indian Online Travel Industry Growth of the Indian Online Travel Industry According to PhoCusWright, the Indian online travel market grew 11% to reach $3.4 billion in 2009. Netscribes has cited sources stating that, in 2009, approximately 34% of air tickets and 14% of train tickets booked in India were sold online. Many travelers also utilize online travel agency websites for travel-related research and information. Key Drivers of Growth We believe that the online travel industry in India is underpenetrated and will continue to grow faster than the overall Indian travel industry, primarily because of the following drivers of growth: Increasing Internet Penetration. According to Internet World Stats, in 2009, Internet penetration was at only 7.0% in India, as compared to over 74.1% in the United States. We therefore believe that the Indian online travel industry is well-positioned for long-term growth. Increased Internet usage as well as the growing breadth of travel products offered online are expected to drive this growth. There is significant potential to serve small and medium businesses through websites rather than traditional corporate travel agencies. In addition, the Forrester July Report estimates that India will have the third largest number of Internet users in the world by 2013, after China and the United States. The Forrester April Report expects the Internet penetration in India and other emerging markets such
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as China and Indonesia to grow annually at an average rate of 10% to 20% over the next five years. Growth in Low-Cost Airlines. We believe that increasing competition in the Indian airline industry and the emergence of more airlines, particularly low-cost airlines, has spurred more and more travelers to choose air travel over the traditional rail travel due to affordability and convenience. With the increase in low-cost airlines, online air travel bookings have also increased. We believe this is in part due to the fact that low-cost airlines typically prefer to use cost-effective distribution channels such as the Internet, using it as their primary distribution channel, either directly or through online travel agents.

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ORGANISATIONAL OPERATIONS
PEST ANALYSIS ` Political Factors : Security and Terrorism In India, it is a very big threat for the tourism industry because what had happened in Mumbai has really hampered the tourism in India. ` Economic Factors: Economic stability like during Recession, amount of tourists in India could fall off considerably. As India and the rest of the world were suffering from recession the tourism industry was affected. ` Social Factors: Peoples Willingness to Book their trips Online. How much % of people travel abroad? Do they like to go on vacations for Leisure. Do they believe in these online portals?

` Technological Factors Quality of Internet, lack of knowledge among the users, Speed with which Transaction can be done. Safety of the transaction. Assurance that the trip is being rightly booked.
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FUTURE PROSPECT
Market Penetration:- to provide discount on two way tickets so that they can retain their regular customers and also attract new customer form this types of schemes. Market Development:- In this to develop new market with the existing service they should enter into the market in China and other countries because U.S.A and INDIA have good trade from China and other countries. Service Development: - In this they can provide new services like site seeing and cargo services and holiday packages this could lead them to enhance their services. Diversification: - Usually no company can maintain their position being in the same sector and the same market so they need to diversify in new market with new products as the mmt should also diversify with collaborating with the companies like FED EX and the DHL, UPS in the cargo sector.

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CHAPTER 3

CONCEPTUAL FRAMEWORK
MARKETING STRATEGY (4PS)
The four marketing P (product, price, place and promotion) is important in developing the entire marketing process for your home based business or small business. The 4Ps will be discussed in details in the following points in order to ensure a good marketing plan is developed.

i) Product There are several aspect that the business owner should take into consideration for the product or service provided in relation to the marketing strategy. The business owner have to consider the benefit for the consumer or customer if they purchase the product or service and detail research in this area is a must. The business owner have to think of creating a outstanding packaging that it could be separated from the competitors packaging. The business owner also have to consider the warranty use of the product and how to make the customer feel that they are staying in the comfortable zone after they buy your product.

ii) Price The next important P is the pricing strategy, if you set the price for a product high you will be facing a great resistance in pursuing people to purchase your product, if you set the price for a product low you will generate a perception of low quality for the product. The business owner have to do some home works to find out what is the best price to charge in order to convince the customer that they have a perception that they are not buying an expensive product with the same product quality which the competitors are able to provide.

iii) Promotion The business owner have to think on how to promote the product or service provided in order to generate great sales projection. The activities that the business owner would go through includes identify the type of advertising medium that is to be used, the marketing effort that is to be carried out, discuss about public relation, describe the promotional and the plan for using advertising specialties or premium items such as pencil, flower and so on.

iv) Place The word place means by itself indicate that where your product should be sell at and where your customer can purchase your products. Most of the home based business or small business are selling their product through website, auction or direct mail order. For example, if you own a SEO company and where you sell your SEO product should be through online marketplace like forum, online classifieds, webcart and so on. Place is not determined as where the product originated but is best determined as where you should sell your product.

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MARKETING MIX  PRODUCT International and Domestic air tickets. Holiday packages and Hotels Domestic Bus and Railway Tickets Private Cars and Taxi Rentals. Meetings, Conferences, Exhibitions.

 PLACE It has online portal 24 x 7 offices in 20 cities in India, Mumbai, New Delhi, Sydney and New York.  PRICE MMT offers competitive economical prices for Tour packages and moreover price is linked with advance booking also. It aimed to offer a range of best-value products and services along with cutting-edge technology and dedicated roundthe-clock customer support.  PROMOTION MMT offers travel insurance and Business
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Lounges in India and overseas for all travelers provides valuable shopping discount booklets provides pick up and drop services for all air travelers. Promoting services with strategic alliances with brands like Coke, Sify.com, Maruti Udyog and Nokia etc.

ORGANISATION REVENUE SOURCES

started business in 2000 with a focus on the sales of air tickets to non-resident Indians in the United States traveling inbound to India. In 2005 started Indian air ticketing business. Over time,expanded hotels and packages business as well as introduced new non-air services and products such as the sale of rail and bus tickets, and facilitating access to travel insurance. We also generate advertising revenue from third party advertisements on websites. Air Ticketing:

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commissions from airlines for tickets booked by customers through distribution channels as well as incentive payments linked to the number of sales facilitated. either deduct commissions at the time of payment of the fare to airline suppliers or collect commissions on a regular basis from airline suppliers, whereas incentive payments are collected from airline suppliers on a periodic basis. Charge customers a service fee for booking airline tickets. receive fees from GDS service provider based on the volume of sales completed through the GDS. Revenue from air tickets sold as part of packages is eliminated from air ticketing revenues and added to hotels and packages revenue. Hotels and Packages: Revenue from hotels and packages business generally represents the total amountpaid by customers for these services and products as well as revenue from air tickets sold as part of packages. hotels and packages revenue also includes commissions earned for the sale of hotel rooms (without packages), and commissions earned as an agent from other online travel agents and aggregators from whom it procure hotel rooms for customers for hotels outside India, which is recorded on a net basis. As revenue in hotels and packages business is accounted for on a gross basis, revenue from air tickets sold as part of packages is grossed upto include the fare paid by customers as well as all commissions and fees charged by us, and added to hotels and packages revenue.
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Other Revenue: Our other revenue primarily comprises revenue from third-party advertising on websites, and commissions or fees from IRCTC for the sale of rail tickets, bus operators for the sale of bus tickets, as well as Apollo Munich Health Insurance Company Limited (previously known as Apollo DKV Insurance Company Limited) for facilitation of the access to travel insurance. We also receive fees from aggregators from whom we procure inventory for certain bus tickets, when we book bus tickets through them. We expect that revenue from these other businesses will continue to contribute an insignificant percentage to revenue in the near future.

Distribution Channels utilize a variety of technology-enhanced distribution channels to target the growing Indian middle class travel market, where Internet penetration is still relatively low. broad distribution network gives access to Indians traveling domestically or overseas and also reaches nonresident Indians and others traveling inbound to India.distribution network uses a combination of our websites, call centers and travel stores as well as travel agents network in India and mobile service platform, giving us multiple channels to access these customers. customers varied needs are served by different distribution channels. Over 95% of sales of air tickets

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for travel in India and the majority of sales of air tickets for outbound travel from India are made through website. Sales of air tickets for inbound travel to India tend to be made mainly through call centers, with call centers accounting for approximately 60.1% of such sales.customers can book standard flight plus hotel packages on websites but the majority of the sales of packages within or outside India are concluded through call centers or travel stores. All of rail and bus ticket sales are made through Indian website. In fiscal year 2010, transactions executed through websites, call centers and travel stores accounted for approximately 94.5%, 3.6% and 1.9%, respectively, of total transactions, with the remaining portion being executed through travel agents network and mobile service platform.

Travel Agents Network have a travel agents network in India which started in 2009, where approximately 4,000 travel agents across more than 450 cities and towns in India can access B2B website enabling them to sell full suite of online travel products to their customers. B2B website uses a similar interface as external customer-facing websites and were able to launch B2B platform in a few months by leveraging technology already being used by us for customer-facing websites. network is attractive to travel agents as it provide access to a range of travel services and products which such agents may not be able to access costeffectively or at all. These travel agents earn commissions from
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them depending on the volume and type of travel services and products sold. Furthermore, travel agents network allows to expand footprint in India and distribution network in a costeffective manner. Mobile In 2008,it launched makemytrip.mobile, mobile service platform. mobile service allows customers to search, book and pay for India domestic air tickets on their mobile phones at no additional cost. Tickets can also be delivered to customers by SMS. Currently,mobile service is only available for Indian domestic air tickets and cancelations and changes cannot be handled via mobile platform but instead are routed to call centers. plan to continue to develop and refine the services which can be delivered over mobile

STRATEGIES TO MAINTAIN POSITION AS A MARKET LEADER The Largest Online Travel Company in India with a WellRecognized Brand. Since commencing our travelbusiness in India in 2005, it has become the largest company in the Indian online travel market, based on gross bookings for 2009, according to PhoCusWright. In fiscal year 2010, 1.6 million transactions for domestic air tickets in India and 109,672 transactions for hotels and packages were booked through us. According to comScore,
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www.makemytrip.com was the second most visited travel website in India (after the Indian Railways website) in each of the years from 2007 to 2009, and had an average of over 1.7 million unique visitors per month in 2009. We believe that our brand is well-recognized in the Indian travel industry. We were the first and only online travel agency brand to be selected as a Superbrand TM in India for 2009-2010. We have invested in developing and promoting our brand since our inception, using a combination of traditional channels such as print, radio and television, mass media campaigns, as well as search engine marketing and other innovative digital marketing tools, such as viral marketing and online display banners, to broaden our reach to travelers in India and overseas. We believe that our reputation and market position have also provided us with better leverage when contracting with airlines, hotels and other suppliers. Primarily as a result of our market position and size, we have been able to increase our net revenue margins in our hotels and packages business from 8.9% in fiscal year 2008 to 10.6% in fiscal year 2009. Wide Range of Service and Product Offerings. We offer our customers a wide range of travel and travel-related services and products. We cater to the travel needs of residents in India as well as non-resident Indians and others traveling to India from the United States and other countries. Our services and products include air tickets, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements such as travel insurance and visa
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processing. We provide our customers with access to all major domestic full-service and low-cost airlines operating in India and all major airlines operating to and from India, over 4,000 hotels in India and a wide selection of hotels outside India, Indian Railways and several major Indian bus operators. We believe our wide range of travel services and products makes us a one stop shop for our customers travel needs and allows us to combine multiple products and provide customized packages that suit the unique needs of our customers. Broad Distribution Network. use a variety of technology-enhanced distribution channels to target the growing Indian middle class travel market, where Internet penetration is still relatively low. Our distribution network is centered on our India-focused website, www.makemytrip.com (which includes our US sub-domain website) and our United Arab Emirates-focused website, our call centers, and our 19 travel stores in various cities in India. We also have a network of approximately 2,000 agents across more than 250 cities and towns in India who can access our business-to-business, or B2B, website enabling them to sell our full suite of online travel services to their customers. Our broad distribution network gives us widespread access to travelers both in India as well as abroad. Advanced, Secure and Scalable Technology Platform. We have built an advanced and secure technology platform, which integrates our sales, customer service and fulfillment operations. We have designed our websites to
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be user-friendly, providing our customers with extensive low price options and alternative routings, as well as offering them combinations of flight and hotel bookings at cost effective rates. Our websites also enable our customers to find their right destinations easily by using colloquial names or major landmarks. Our web-based booking engine has been designed to link to our suppliers systems either through direct connects or a GDS (we currently use Amadeus GDS), and is capable of delivering real time availability and pricing information for multiple options simultaneously. Our technology platform is able to handle up to 500,000 website requests per day. This platform is scalable, and can be upgraded to handle increased traffic and complexity of products with limited additional investment. We estimate that an additional investment in hardware costing approximately $360,000 would increase the capacity of our technology platform to 1 million website requests per day. As a result of our scalable platform, we were able to launch our B2B platform in 2009 in only a few months by leveraging our existing technology. Customer-Focused Approach. We place significant emphasis on technology, personnel and training to improve our services to our customers. Our customers can choose from our various customer service channels to contact us, including web-based self service or chat support as well as our toll-free call centers, our travel stores and e-mail. Our
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mobile service platform also enables customers to receive etickets and flight alerts via text messages (SMS) on their mobile phones. We provide important travel information on our websites, such as the on-time performance of airlines, user-generated travel reviews and destination guides to help customers conduct research and make travel decisions. We primarily outsource our call center operations and fulfillment process to IBM Daksh and Intelenet Global Services in India, as we believe these experienced and reputable service providers are able to adhere to our customer service standards and enhance our service quality. We also have a dedicated in-house escalation service which operates 24 hours a day, seven days a week, and is responsible for addressing issues or complaints raised by our customers. Experienced Management Team. We operate in an industry where we believe one of the most important assets is the quality of our people. Our senior management team is comprised of industry executives with significant experience in the travel industry, including online travel agencies, in India, the United States and the United Kingdom. Our management team also has in-depth experience in the Internet and information technology industries, having worked with companies such as GE Capital, Amazon, Google and IBM, and in the consumer industry, including Pepsi. We also actively recruit MBA graduates and engineers from leading institutions in India to fill

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CHAPTER4 DATA ANALYSIS AND INTERPETATION SWOT ANALYSIS STRENGTH ` Convenience of 24/7 service ` Promotion and strategic alliances with brands ` Competitive Priced Products. ` Provides all the travel related services WEAKNESS ` Operating in a market where people are less technology savvy. ` Less bargaining power in the international market. OPPURTUNITY ` More than 9 million Indians customers travel abroad.
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` International and Domestic Holiday packages increasing . THREAT ` Its main threat in India is yatra.com which is also the main competitor in India. ` Most of Airlines encouraging direct online purchasing.

PORTERS FIVE FORCE ANALYSIS The threat of substitute products or services The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives:
y y y y y y

Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product.
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y y

Substandard product Quality depreciation.

The threat of the entry of new competitors Profitable markets that yield high returns will draw firms. This results in many new entrants, which eventually will decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).
y

y y y y y y y y y y y

The existence of barriers to entry (patents [1], rights, etc.)The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost advantages Learning curve advantages Expected retaliation by incumbents Government policies Industry profitability; the more profitable the industry the more attractive it will be to new competitors Internet era; today competitors need only a website to enter a market
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The intensity of competitive rivalry For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
y y

y y y

Sustainable competitive advantage through innovation. Competition between online and offline companies; clickand-mortar -v- brick-and-mortar Level of advertising expense. Powerful competitive strategy The visibility of proprietary items on the Web.

Companies that are successful with introducing new technology, are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. The bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
y y

y y

Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyer switching costs relative to firm switching costs
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y y y y y

Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products.

The bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources.
y y y y y y y

Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Supplier concentration to firm concentration ratio Employee solidarity (e.g. labor unions) Supplier competition - ability to forward vertically integrate and cut out the buyer.

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ANSOFFS MATRIX EXISTING CUSTOMER EXSISTING SERVICE

Market Penetration Market Development IT CAN ENTER INTO THE MARKET OF CHINA BECAUSE INDIA AND US HAS GOOD TRADE WITH CHINA Service Development It can Provide Holiday Packages Diversification BUY SMALL COMPANIES IN CHINA

NEW CUSTOMER

NEW SERVICE

PROVIDE DISCOUNT ON TWO WAY TICKET.

Competition in the Indian Online Travel Agency Industry

the total business-to-customer online travel agency market (i.e. businesses serving end consumers with travel products and/or services through an online channel) in India is valued at $1 billion and is dominated by four players MakeMyTrip, Yatra, Cleartrip and Travelguru (which was acquired by
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Travelocity in August 2009). Of these, MakeMyTrip commands a market share of 48%, followed by Yatra at 24% and Cleartrip at 18%, based on gross bookings for 2009. These online travel agencies face competition from traditional travel agents as well as meta search engines, such as Ixigo, Ezeego1 and Zoomtra.

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CHAPTER 5

CONCLUSION
The Largest Online Travel Company in India with a WellRecognized Brand. Since commencing our travel business in India in 2005, have become the largest company in the Indian online travel market, based on gross bookings for 2009. In fiscal year 2010, 1.6 million transactions for domestic air tickets in India and 109,672 transactions for hotels and packages were booked through us. According to comScore, www.makemytrip.com was the second most visited travel website in India (after the Indian Railways website) in each of the years from 2007 to 2009, and had an average of over 1.7 million unique visitors per month in 2009.

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BIBLIOGRAPHY MAKEMYTRIP.COM GOOGLE.COM

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