PROJECT ON MARKETTING

PLAN OF SERVICE

Submitted to: Submitted By:

(Group No. 8)
Ms. Monica Mor Abhishek Hasiza
Ms. Anurupa Singh Ankush Bhatia
Ankush Soni
Ayush Bhalla
Divyabhan Singh
Mohit Khandelwal

ACKNOWLEDGEMENT

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With great pleasure and profound privilege, We express our gratitude
and indebtedness along with sincere thanks to Ms Monica Mor & Ms
Anurupa Singh for giving us the opportunity to work on this project.

We would also like to pay gratitude to our Project guide, Mr. I.L. Bansal
(Director) Out of Africa tours & travels (SOTC), who has been a sincere
advisor and inspiring force behind this project.

This Project would not have been a success without the help of our
group members.

Table of Content
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 I. Executive Summary

II. Introduction to tourism Industry

III. Tourism industry in India

 Contribution to Economy
 Foreign Tourist Arrivals
 Government Initiative

IV. SOTC –An Overview

 SOTC Brands
 SOTC World Famous Tours
 SOTC Bhraman Mandal
 SOTC Gurjar Vishwardarshan
 SOTC Do-it-Yourself Holidays
 SOTC Holidays of India

V. Vision, Mision and Objectives of SOTC

 Keys to Success for SOTC

 Strategic Areas of Focus

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 VI. Marketing Mix(7P’s)

 Product
 Place
 Promotion
 People
 Process
 Physical Evidence

VII. Market Segmentation

VIII. 4I’s of Services

 Inflexibilty
 Inventory/ Perishability
 Inconsistency
 Intangibilty

IX. PEST Analysis

X. SWOT Analysis
XI. Porter’s Five Forces Model For SOTC

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XII. Marketing Plan for SOTC(Religious tour to Vaishno Devi)

XIII. Project Outcomes & Recommendation

XIV. References

Executive Summary
This project overall is a very important learning for us, it helps us to
understand various aspects of tourism industry and also mentioned
India`s share in tourism with respect to the world and it`s contribution to
the Indian economy. Under Tourism industry we have taken SOTC
World tours for our project.
Firstly, we have explained an introduction to SOTC, it`s various holiday
packages, then SOTC brands.
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Secondly, we have mentioned vision statement, mission and objectives
of SOTC, keys to success in tourism, strategic areas of focus.
Thirdly, we have explained 7P`s of marketing in SOTC with respect to
tourism industry, market segmentation, 4 I`s of services in tourism
industry, PEST analysis with regard to tourism industry, SWOT analysis
for SOTC, Porter`s five forces model for SOTC.
Fourthly, we have shown a marketing plan for SOTC`s Religious tours
to Vaishno Devi.
Lastly, we have given our project outcomes and recommendations.

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Introduction to Tourism Industry:
The Travel and Tourism industry is still one of the largest single
businesses in world commerce and its importance is widely recognized.
The tourism industry is now one of the largest sectors earning foreign
exchange. In the face of many benefits, many countries have started
assigning due weight age to the tourism industry in their national
development agenda.
Tourism is an industry that operates on a massively broad scale: it
embraces activities ranging from the smallest sea-side hotel; to air-lines,
multi-national hotel chains and major international tour operators.
Originally, non-traditional industries such as tourism emerged as a
solution to strike a balance between ecology and industry
 Tourism is one of the world's fastest growing industries at present
and holds the status of the world's no. 1 industry.
 Spending on tourism amounts to 5%-10% of total consumer,
spending in a year worldwide.
 The tourism industry as a whole is presently estimated to earn over
US$ 3.5 trillion worldwide.
 India's share of the total market is a pittance at 0.51%. The non-
tourist countries like Malaysia and Indonesia get much more
tourists than India.
 India's share of the total market is a pittance at 0.51%. The non-
tourist countries like Malaysia and Indonesia get much more
tourists than India.
 The Tourism industry's foreign exchange earnings in India are
around $3.2 billion. Tourism is the highest foreign exchange earner
if we consider the fact that net value addition in Gems and
jewellery is less than 30 % whereas, in tourism it is more than 90
%.

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 SPECIAL FORMS OF TOURISM
For the past few decades many forms of tourism are becoming more
popular, particularly:
ADVENTURE TOURISM
This type of tourism involves travel in rugged regions, or adventurous
sports such as mountaineering and hiking (tramping).
CULTURAL TOURISM
It includes urban tourism, visiting historical or interesting cities, such as
Delhi, Amritsar, Mumbai, Banglore, Chennai, Ahmedabad, etc. and
experiencing their cultural heritages. This type of tourism may also
include specialized cultural experiences, such as art museum tourism
where the tourist visits many art museums during the tour, or opera
tourism where the tourist sees many operas or concerts during the tour.
EDUCATIONAL TOURISM
It may involve travelling to an education institution, a wooded retreat or
some other destination in order to take personal-interest classes, such as
cooking classes with a famous chef or crafts classes.
GARDEN TOURISM
It means visiting botanical gardens, famous places in the history of
gardening, such as Versailles and the Taj Mahal.
HERITAGE TOURISM
It is visiting historical (Rome, Athens, Cracow) or industrial sites, such
as old canals, railways, battlegrounds, etc.

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HEALTH TOURISM
It means usually to escape from cities or relieve stress, perhaps for some
'fun in the sun', etc. often to "health spas".
MEDICAL TOURISM
It is used for advanced care that is not available in one's own country, in
the case that there are long waiting lists in one's own country for use of
free or cheap health care organizations for what is illegal in one's own
country, e.g. abortion, euthanasia; for instance, euthanasia for non-
citizens is provided by Dignitas in Switzerland.
HOBBY TOURISM
Tourism alone or with groups to participate in hobby interests, to meet
others with similar interests, or to experience something pertinent to the
hobby. Examples might be garden tours, square dance cruises, etc.
POP-CULTURE TOURISM
This tourism refers to tourism by those that visit a particular location
after reading about it or seeing it in a film.
PERPETUAL TOURISM
It is mainly for wealthy individuals who are always on vacations; some
of them, for tax purposes or to avoid being resident in any country.
PILGRIMAGE TOURISM
Pilgrimage tourism refers to ancient holy places (Rome and Santiago de
Compostela for Catholics, Temples and stupas of Nepal for the Hindus
and Buddhist, Mount Athos or Painted churches of northern Moldavia
for the Orthodox), religious sites such as mosques, shrines, etc.
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SPORT TOURISM
Skiing, golf and scuba diving are popular ways to spend a vacation. Also
in this category is vacationing at the winter home of the tourist's favorite
baseball team, and seeing them play everyday.

ECO TOURISM
It means sustainable tourism which has minimal impact on the
environment, such as Safaris (Kenya), Rainforests (Belize) and Hiking
(Lapland), or national parks.

GAMBLING TOURISM
This tourism refers to tourism to Atlantic City, Las Vegas, Macau or
Monte Carlo for the purpose of gambling at the casinos there.

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Tourism Industry In INDIA :
As per the Travel and Tourism Competitiveness Report 2009 by the
World Economic Forum, India is ranked 11th in the Asia Pacific region
and 62nd overall, moving up three places on the list of the world's
attractive destinations. It is ranked the 14th best tourist destination for its
natural resources and 24th for its cultural resources, with many World
Heritage sites, both natural and cultural, rich fauna, and strong creative
industries in the country. India also bagged 37th rank for its air transport
network. The India travel and tourism industry ranked 5th in the long-
term (10-year) growth and is expected to be the second largest employer
in the world by 2019.

India has been ranked the "best country brand for value-for-money" in
the Country Brand Index (CBI) survey conducted by Future Brand, a
leading global brand consultancy. India also claimed the second place in
CBI's "best country brand for history", as well as appears among the top
5 in the best country brand for authenticity and art & culture, and the
fourth best new country for business. India made it to the list of "rising
stars" or the countries that are likely to become major tourist
destinations in the next five years, led by the United Arab Emirates,
China, and Vietnam.

Contribution to the Economy :

According to the Travel & Tourism Competitiveness Report 2009
brought out by the World Economic Forum, the contribution of travel
and tourism to gross domestic product (GDP) is expected to be at US$
187.3 billion by 2019.

The report also states that real GDP growth for travel and tourism
economy is expected to achieve an average of 7.7 per cent per annum
over the next 10 years. Export earnings from international visitors and

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tourism goods are expected to generate US$ 51.4 billion (nominal terms)
by 2019. The travel and tourism sector which accounted for 6.4 per cent
of total employment in 2009 is expected to generate 40,037,000 jobs i.e.
7.2 per cent of total employment by 2019.

Foreign Tourist Arrivals

Estimates of foreign tourist arrivals (FTAs) and foreign exchange
earnings (FEE) are important indicators of the tourism sector.

According to the latest data released by the Ministry of Tourism, FTAs

during January 2010 were 491,000 as compared to 422,000 in January
2009, an increase of 16.4 per cent. FEE in US$ terms during January
2010 were US$ 1.21 billion as compared to US$ 941 million in January
2009, a growth of 29.1 per cent.

Moreover, to give a further boost to the tourist arrivals, the Indian

Association of Tour Operators (IATO) has drawn up plans to hold
roadshows in the US, UK, European Union nations and Australia in
2010 to hard sell India as a tourist hub.

Government Initiative
The campaign ‘Visit India Year 2009’ was launched at the International
Tourism Exchange in Berlin, aimed to project India as an attractive
destination for holidaymakers. The government joined hands with
leading airlines, hoteliers, holiday resorts and tour operators, and offered
them a wide range of incentives and bonuses during the period between
April and December, 2009.

Euromonitor International's Travel And Tourism in India report states

that the Government of India increased spend on advertising campaigns
(including for the campaigns ‘Incredible India’ and ‘Atithi Devo Bhava’
- Visitors are like God) to reinforce the rich variety of tourism in India.

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The ministry promoted India as a safe tourist destination and undertook
various measures, such as stepping up vigilance in key cities and at
historically important tourist sites. It also deployed increased manpower
and resources for improving security checks at key airports and railway
stations.

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SOTC: An Overview:-
Established in 1949 with just five employees at an office in Cawasji
Hormusji Street, Mumbai, it has grown to become one of India’s largest
travel companies. By the year 1968, the Company had moved to a much
bigger office at Mint Road and was also counted as one of the top ten
travel agents in Mumbai, with a turnover touching Rs 25 million.
A major turning point came in 1976 when SOTC handled its first group
tour to the US during the bicentennial celebrations. Within three years,
SOTC had taken about 500 passengers to Europe, the US, Singapore and
Japan. In 1981, came another breakthrough when SOTC Package Tours
began active advertising, with the first ad hitting the newspapers.
Between the years 1983 and 1995, SOTC grew by leaps and bounds. It
moved to new premises at Church gate, Mumbai, installed the first
computer for sales and operations, and went through a management
metamorphosis with a complete restructuring of the business into
autonomous Strategic Business Units (Subs) with a state-of-the-art call
centre. SOTC has been fulfilling the travel needs of Indians for over five
decades now. It continues to seek out new and exciting destinations to
offer to outbound travelers.

SOTC’s outbound business operations broadly encompass Packaged

Group Tours for Indians and Individual Holidays. SOTC World Famous
Tours caters to those who seek comfort in group travel. It is widely
acknowledged to be the most successful package tour brand in India.
Recognizing the importance of language markets, SOTC also pioneered

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tours conducted in Marathi and Gujarati under the SOTC brand
extensions: SOTC Bhraman Mandal and SOTC Gurjar Vishwadarshan.

SOTC Do-It-Yourself Holidays caters to seasoned individual travelers

who want to see the world at their own pace. And for domestic
vacationers we have Holidays of India.
SOTC has been the pioneer in the development of organized leisure
travel in India. With a sales turnover of Rs 400 crores (2005), growing at
30% p.a., and a wide distribution network of 130 sales outlets and 3500
travel agents across India, it is more than double the size of the next
biggest competitor
SOTC - India's Leading Outbound Tour operator
SOTC is the Outbound Travel Division of Kuoni India and the country’s
largest outbound tour operator. World Famous Tours is the flagship
brand of SOTC, which pioneered the designing and marketing of
escorted tours to cosmopolitan travelers in India. SOTC World Famous
Tours has escorted over 3,00,000 travelers across the globe, for more
than 50 years to various destinations including Europe, Australia, New
Zealand, USA, Africa, Mauritius, South Asia, and the Far East. Being a
100% subsidiary of Kuoni Travel Holding, Switzerland – one of the
world’s largest travel companies - SOTC leverages the advantage of the
buying power and travel services to provide customers value-for-money
packages. SOTC endeavors to bring alive customers dream holiday. To
begin with, SOTC ensures that customer’s family travel safe, sure and
secure with the finest Indian families.

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SOTC has a wide distribution network of 130 sales outlets and 3500
travel agents across India to retail our range of products and serve
customers better.

SOTC – Voted The Best Outbound Tour Operator 2004, 2005 & 2006
SOTC has been voted the Best Outbound Tour Operator 2004, 2005 and
2006 in India by the Galileo Express Travel & Tourism Awards
Committee. The Galileo Express Travel & Tourism awards have been
designed to give recognition to the trade for outstanding achievements
during the year. The advisory board formulated the criteria for the award
in consultation with the renowned audit firm, Deloitte Touche
Tohmatsu, which used both a subjective and objective methodology that
included a polling process. This award was based on various parameters
of judgment and took into consideration factors including revenue
generated, operational efficiency, perceived service levels, and the
ability to retain and increase market share.

It is also significant to note that Kuoni India, the parent company of

SOTC has won all the 3 top awards in the travel operations category at
the prestigious Galileo Express Travel and Tourism awards for all its
three core activities.

Kuoni was presented the highly prestigious World’s Leading Tour

Operator 2006 award ' World's leading tour operator ' at WTM, London
in November 2005. The World Travel awards, which are bestowed for
exceptional services in the travel sector, have evolved into one the

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industry’s most important annual events over the past few years. The
awards are voted on by thousands of travel – sector specialist from over
80,000 agencies in more that 200 countries. And winning one is clear
confirmation of a company’s excellence within the travel sector.

SOTC’s Brands

1)-SOTC World Famous Tours

SOTC World Famous Tours is the flagship brand of SOTC, which
pioneered the designing and marketing of escorted tours for
cosmopolitan travelers in India. SOTC World Famous Tours has
escorted over 3, 00,000 travelers across the globe for more than 30
years, to various destinations including Europe, Australia, New Zealand,
USA, Africa, Mauritius, South Asia, and the Far East Being a 100%
subsidiary of Kuoni Travel Holding, Switzerland - one of the world's
largest travel companies SOTC leverages the advantage of the buying
power and travel services to provide customers value for- money
packages. SOTC has built a reputation that it lives up to its promise to
take Indians around the world, while making them feels completely at
home, no matter where they are.

2)-SOTC BhramanMandal
In 2002, SOTC BhramanMandal was launched exclusively for
Maharashtrian, to cater to their specific needs and requirements. SOTC
BhramanMandal offers 'All-inclusive' exciting package tour options to

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Europe, Far East, Australia and New Zealand. While designing the tours,
every single need of the Maharashtrian is kept in mind - their culture,
eating habits and likes and dislikes
Prominent features of SOTC BhramanMandal Europe and Australia
tours are the Predeparture meeting, Travel Kit and an experienced
Marathi speaking Tour Manager who accompanies them all the way
from Mumbai to the destination and back. Within just five years of
existence, SOTC BhramanMandal has become a household name
amongst the Maharashtrian
On 14th January in the year 2002, BhramanMandal was born. It was the
auspicious day of Sankranti. But more importantly, it was a moment of
reckoning for Tourism. As SOTC, India’s Greatest Packaged Tour
Company launched BhramanMandal, a packaged tour division
exclusively to cater to the needs of Maharashtrians. While designing the
tours, every single need of Maharashtrian was kept in mind. Be it their
eating habits or their likes and dislikes, every aspect was taken into
consideration. But it was the experience of traveling with them, that was
even more enriching, for both, the travelers and us
Within just over a year of our existence, BhramanMandal has become a
household name among Maharashtrians. And this has been possible
because of all of those fellow Maharashtrians who chose to travel with
us.

3)-SOTC Gurjar Vishwadarshan

SOTC Gurjar Vishwadarshan was launched especially for Gujarati
community residing in India, to cater to their needs of having a Pure
Indian Vegetarian Meal with a Gujarati flavor, Gujarati speaking tour
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manager at your service right from India to India and traveling with the
finest Gujarati families makes your holiday the most memorable and
comfortable one. Gurjar Vishwadarshan launched in the year 2004
received an overwhelming response from the Gujarati's staying all over
India. Since then it has been scaling heights year after year today in its
4th year of existence it has become a household name for Gujarati's and
is fondly rembererd by Gujarati holiday goers, this has been possible
because of all of those fellow Gujarati's who chose to travel with us.
With the new positioning of our brand "Expect More" ....in Gujarati
which means "Apeksha Thi Vadhare" we assure our patrons that every
time they can just expect more with SOTC.
Gurjar Vishwadarshan is one of the business units of SOTC. SOTC has
pioneered its position in the packaged tour segment with its unparallel
expertise devised over last 50 years. Being a 100% subsidiary of Kuoni
Travel Holding, Switzerland - one of the world’s largest travel
companies - SOTC leverages the advantage of the buying power and
travel services to provide customers value-for-money packages.

4) - SOTC Do-it-Yourself Holidays

SOTC Do-it-Yourself Holidays caters exclusively to the needs and
requirements of the discerning Free Individual Traveler. It offers a wide
range of customized holidays that allows individual travelers the
freedom to define their preferences of the destination, length of stay and
pace of travel
Following high-quality standards, SOTC Do-it- Yourself Holidays have
ensured accommodation at some of the world's finest hotels allowing for
proximity to city centre attractions such as shopping malls, pubs, cafes,

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restaurants and scenic delights. An individual traveler on SOTC Do-it-
Yourself Holidays has the option to explore all the attractions of a single
city. Or focus on all key cities of a particular country. They can even
combine two to eight countries in their holiday, depending on their
tastes, time and budget
5) - SOTC Holidays of India

SOTC Holidays of India has something for every kind of traveler - be it

families, youth, students, honeymooners, groups or individuals. SOTC
Holidays of India offers packages that cover every conceivable tour
requirement - whether it is an extended vacation with the family, a
paragliding spree with friends or simply a rejuvenating weekend break.
SOTC Holidays of India offers an opportunity to visit and explore all the
splendors of India through various categories of holiday packages.
SOTC Holidays of India has categorized all holiday packages into
Standard, First and Deluxe Class categories.
It also offers a wide range of customized holidays thereby giving
individual travelers the complete freedom and flexibility to define their
preference of the destination, length of stay and pace of travel
SOTC Holidays of India has something for every kind of traveler - be it
families, youth, students, honeymooners - groups or individual. SOTC
Holidays of India has a range of holiday options namely: Classic
Holidays of India, Fun-filled Beaches of India, Hill Stations & Quick
Getaways and Spiritual Retreats.
SOTC Holidays of India is a division of Kuoni Travel (India) Pvt.
Ltd., India's Largest Travel and Tourism Company. A market leader in
its field, this division markets and operates foreign holiday packages
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under the SOTC World Famous Tours brand in India and in the big NRI
markets of the Middle East, USA and UK. It currently operates from 120
sales points across India and boasts of more than 250,000 loyal
customers.

SOTC Holidays of India offers packages that cover every conceivable

tour requirement; whether it is an extended vacation with the family, a
paragliding spree with friends or simply a rejuvenating weekend break
SOTC Holidays of India offers you an opportunity to visit and explore
all the splendors of India through various categories of holiday packages
Classic Holidays of India are time tested popular attractions like
Kashmir, Himachal, Rajasthan and Kerala those have proved their
ability to completely satisfy the traveler
Fun-filled Beach Holidays offers not just sun and sand but also cool
lagoons, clear waters, corals, reefs and beach resorts.
Hill Stations & Quick Getaways offer a break through a multitude of
retreats at a short distance from home.
Spiritual Retreats to Rediscover Your Soul provide excursions to
various spiritual and hallowed sites
SOTC Holidays of India has categorized all holiday packages into Standard, First
and Deluxe Class categories.

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Vision, Mission and Objectives
of SOTC

Vision Statement
“SOTC vision focuses on providing all travel and travel-
related services to travelers from, within and to India”

Mission and Objectives

The mission of the SOTC is:
 to advance the sustainable development and
management of tourism;
 to creating best value for people: our customers,
our employees, our shareholders and our
business partners

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OBJECTIVES :
The Mission will be achieved by pursuing the following strategic
objectives and associated actions:
 
Objective 1:
Assist tour operators in implementation of sustainable tourism through
adoption of best practices in their internal operations and management of
the supply chain, and in destinations, BY

 Facilitating the exchange of best practices adopted to implement

the principles for sustainable tourism and the Initiative’s Statement
of Commitment
 Developing new management tools and adapting existing ones,
specific to the industry (EMS, ISO14001, LCA etc) for tour
operators own operations, and for sustainable management
practices in the supply chain.
 Providing a platform for dialogue with other partners (eg. with
destination authorities and stakeholders focused on implementing
programmes for sustainable development in destination areas).
 Involving tour operators in the relevant programmes of work of
UNEP, UNESCO, and UNWTO.
 Assessing progress made on a regular basis.
 Facilitating partnerships between members to address issues with
a common voice.

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Objective 2:
Broaden the support for sustainable development among other players in
the tourism sector, including of tourists BY
 Cooperating with key stakeholders, including business partners,
regional and national governments, NGOs and other groups (eg.
ECPAT, Blue Flag, etc.) With a common agenda, on specific
activities and projects.
 Increasing the awareness of key players: tourists, other segments
of the tourism industry, local communities and people, tourism
trade associations, and local and national authorities.

Objective 3:
Create the critical mass of committed tour operators by
 Increasing the visibility of committed tour operators and creating
the image of the Initiative as a world leader in the area of
environmentally, socially and culturally responsible tourism
(public and industry recognition).
 Increasing membership of the Initiative.
 Establishing partnerships with other organizations that contribute
to achievement of these objectives, eg. By setting up national /
regional focal points for the Initiative to engage in outreach
activities.
 Strengthening links with regions through tour operators’
associations and UNEP, UNESCO and UNWTO networks, where
the Initiative is underrepresented at present.

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Keys to Success for SOTC
The keys to success will undoubtedly be effective market segmentation
through identification of several niche markets and implementation
strategies. Along these lines the company intends to implement
advertising, personal selling and direct marketing strategies to the target
markets. Their personal selling marketing strategies will rotate around
keeping in touch with hotels and travel agencies for major customers,
and advertising for more individual customers. Hence their key success
factors will include the following:

1. Excellence in fulfilling the promise: Intend to offer completely

enjoyable, comfortable and informative travel excursions that will
ensure that travelers are thoroughly satisfied and appreciative at
the end of their trip.

2. Timely response to customers' requests: SOTC Cannot afford to

delay their clients for whatever reason, as this will have a negative
bearing on our image and reputation, including future business.
Hence they need to be continually communicating with the client,
including hotels and lodges so as to ensure that they are constantly
available to the client meeting their expectations.

3. Solid and fruitful strategic alliances: Considering the nature of

their services and our relative infancy on the market, SOTC should
realize the importance of establishing and maintaining fruitful
strategic alliances with various stakeholders, including hotels,
lodges, and travel agencies, amongst others, so as be assured of a
constant flow of customers, fulfilling their needs at every
opportunity.

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 4. Marketing know-how: There will be a need to aggressively
market SOTC business and the services they provide so as to be
continuously at the top of our prospective clients minds. This will
also act as a temporary deterrent for companies contemplating
entering our market. Advertising shall be undertaken on a regular
basis.

Strategic Areas of Focus

1. Maximize the return on public and private investments in tourism.

2. Drive year-round travel from visitors in our domestic target audience

and lengthen their average stay by encouraging them to be destination-
oriented in this state.

3. Drive year-round travel and lengthen the average stay from visitors
from our primary international markets.

4. Provide leadership and support through collaboration with local,

regional, national, tribal and private-industry tourism entities.

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MARKETING MIX (7P’s)

TARGET

MARKET

PRODUCT
THE E
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Product is the combination of tangible and intangible elements. The
tourism product, which is mainly the destination, can only be
experienced. The views of the location travel to the destination, the
accommodation and facility as well as the entertainment at the
destination all form the tourism product.
Thus it is a composite product combination of attraction, facilities and
transportation. Each of these components has its own significance in the
product mix and in the absence of even single components, the product
mix is incomplete.

Services Offered by SOTC

 Escorted tours
 Customized holidays
 Trade fairs
 SOTC sports
 Corporate tours
 Special tours – Marathi tours, Gujarati tours, Monalisa Tours

Main Focus In Product

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 WITH RESPECT TO THE
Sr.No. BENEFIT MEANING
SOTC
The fundamental benefit
1 CORE BENEFIT or service that the Traveling.
customer is buying.
BASIC Basic, functional Ticketing, hotel
2
PRODUCT attributes. reservation.
Set of attributes/conditions
EXPECTED Customer friendliness,
3 the buyer normally
PRODUCT good food.
expects.
Prompt services,
That meets the customer’s
AUGMENTED comfortable and
4 desires beyond
PRODUCT convenient trip, spectacular
expectations.
sights, and music.
Totally customized tour
POTENTIAL The possible evolution to
5 packages, A grade service
PRODUCT distinguish the offer.
at every stage.

PRICE

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Pricing in tourism is a complex process. Pricing includes the prices of
other services like Air travel, Bus, Railways, Hotels, etc. All are
included in tourism package. Pricing also depends on the Geographic
location of the destination.
Pricing also depends on Seasonality. Seasonality is the most important
factor in pricing. To match demand and supply tourist managers try to
get either discount. E.g. Taj is the tourist attraction in India. Pricing is
also based on competitors pricing. Pricing is also subject to government
regulations. E.g. Air price changes tourism package also changes, if
Hotel charges change then also tourism package changes.
Pricing of the tourist product is a complex matter because of its
composite nature. Geographical location of the destination affects the
pricing decision. At the same time, seasonality factor and varying
demand cannot be overruled. The objective of pricing in any other firms
is to fetch a target market share, to prevent competition, and to take care
of the price elasticity of demand.
A very important way, in which SOTC responded to their highly
complex pricing circumstances, is to operate at two levels.
 The first level is corresponds with the marketing strategy, which
concerns with the product positioning, value for the money, long
run return on investments etc.
 The second level corresponds to the marketing operations or
tactics where the prices are manipulated to match the current
demand and competition.

PLACE
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Different distribution strategies can be selected for Tourism marketing.
Tourism as a product is distributed as a travel. Internet is also used
widely. There is an also small agent spread all over the town who plays a
role of place. Large travel companies like Thomas Cook, Cox & Kings,
SOTC, etc they act as a wholesalers and these wholesalers also act as a
retailer. The two major functions performed by the distribution system in
tourism marketing are:
 To extend the number of points of sales or access, away form the
location at which services are performed or delivered
 To facilitate the purchase of service in advance

Different distribution strategies are selected for Tours marketing by

SOTC. There are also small agents (who have taken franchise of SOTC)
spread all over the town/country who also play a role of place. SOTC act
as wholesalers and also act as a retailer. The latest mode of reaching the
customers is through Internet that is SOTC has its own website from
where information on the tours can be procured, direct booking can be

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done for which the payment can be made through the credit card. SOTC
also has its own offices from where booking can be done.

 Franchises Offices in all major cities of India

347 offices in India
 Tie Ups Flightraja.com
(VIA is a Trademark of Flightraja.com)
Travelboutiqueonline
Premium Tickethub (Sports Tourism)
 Internet Booking of Packages and Tickets

PROMOTION
Advertising and sales promotion in Tourism can be very effective when
supplemented by publicity and personal selling. They use electronic,
print all sorts of media they use; and it is highly promoted industry.
Public or PR (Public Relation) plays an important role in tourism. It is
also through recommendation of friends and relatives this is a biggest
promotion.

Creation of awareness is an important factor in the formulation of

marketing mix for the tourism industry. The promotion task simplifies
the activities of informing, persuading and influencing the decisions of
potential tourists. The promotion mix plays a vital role as the users of
service feel high degree of involvement and uncertainty about the
product and their role in buying process.

Some of the important aspects of promotion are:

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  Print
 Electronic Ads
 Sales Promotion- EMIs
 Publicity/PR
 Word of mouth, personal selling, telemarketing
 Exhibitions/Trade Fairs
 Tie ups with Yash Raj Films, Experiencing the Magical moments
of Yash Raj Films with SOTC.
 SOTC appointed as the Tour Partner to Kingfisher Airlines for the
DLF IPL T20.

Word-of-mouth is a very important tool of promotion in tourism.

Research shows that about 80% of the tourist visited different places on
the persuasion of their friends and relatives and also their own
judgments. SOTC uses electronic, print and all sorts of media as tourism
is a highly promoted industry. SOTC gives printed ads in “The Times of
India” mentioning the special tours in it with the special prices offered
by them. Brochures are another form of communication provided by
SOTC to stimulate customers and motivate them to buy. They are used
to demonstrate in pictures and words the images and positioning of the
product and the organizations.

PEOPLE
It plays a most important part in tourism. In people local people are very
important, that how they treat tourist. The travel agents, guides, staff of
travel companies, sales staff, etc they are the people. Travel Company
also like Railways, Air, etc. is included in people. Normally a tourist
assures a tourism quality like hotels, Travel Company.

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In the tourism industry the travel agents and the travel guides are the two
most important people who speak a lot about the industry. Hence it is
imperative that they have to be at their best at all times. Travel guides
especially, are expected to have a lot of patience, good sense of humor,
tact to transform the occasional tourists into habitual ones, thorough
knowledge of the places, linguistic skills etc.

SOTC`S PEOPLE MIX-

• Includes travel agents, tour operators, tour guides et al

• Locals are employed
• Exhaustive training is provided
• 2900 employees through its 347 offices and caters to 3 million
customers.
SERVICES MARKETING TRIANGLE

PROCESS
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 Employee
-------------------------------- Line of Interaction--------------------------------

Customer Completion of
Enquiry/ Explainin Negotiating customer
Reaching g the the formalities and
the details Terms document
customer submission

Itinerary
Air, hotel Arrange- Walk- Return
Travel/Journey
reservations ments to destination ing the
as per needs talk Journe
y

-----------------------------------Line of Internal Control/Records--------------------

Maintaining records
Itinerary and follow up
Confirmation through CRM

The operation process of the tourism firm will depend on the size of the
tourism firm. The sequential steps involved in the delivery of the SOTC
products are:
 Provision of travel information --- The information regarding the
travel is provided at a convenient location where the potential
tourist seeks clarification about his proposed tour.

 Preparation of itinerates------ SOTC prepares its composition of

Contingency
series of operations that are required to plan a tour.
provisions

 Liaison with providers of services--- Before any form of travel is

sold over the counter to a customer; SOTC enters into the
contracts with the providers of various services including
transportation companies, hotel accommodation, coaches for local
sightseeing etc.

~ 35 ~
  Planning and costing tours------ Once the contracts and
arrangements are entered into, then the task of planning and
costing the tour, this will depend on the tour selected as well as
individual requirements.

 Ticketing----- The computerized reservation system has in recent

years revolutionized the reservation system for both rail and air
travel. SOTC also provides the online ticket booking facilities to
its customers, which further leads to time saving process for it`s
customers.

 Provision of foreign currency and insurance--- SOTC in case of

foreign travel also provide foreign currency as well as insurance to
it`s customers.

PHYSICAL EVIDENCE
The Physical evidence of a tourism product refers to a range of more
‘tangible attributes of the operations. ‘Tangibalising’ the product is a
good way of giving positive and attractive hints or cues to potential
customers with regard to the quality of the product. For SOTC ,
Elements Such as quality and attractiveness of décor, effective layout of
establishment, surroundings and quality of promotional materials are all
important.

Market Segmentation

~ 36 ~
Indian travel market can be classified into two broad categories
International Travelers- Those crossing International borders
Domestic Travelers - Those travelling within India.
International Travelers can be classified as Inbound Travelers (those
who travel into India from Overseas) and Outbound of India (who
travel internationally)

Inbound market is further segmented into six broad categories

1. Holiday and sight seeing.
2. Business travelers
3. Conference attendees
4. Students
5. Visiting friends

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 6. Relatives and others

Targeting:-
Such segmentation is useful when deciding the offerings to target a
particular segment. For example,

 The mass market consists of vacationists that travel in large

groups and prefer all-inclusive tours. They are generally
conservative.

 The popular market consists of smaller groups going on

inclusive or semi-inclusive tours. This group includes
pensioners and retired people.

 The individual market consists of chairmen, senior

executives, etc.

 As the lifestyle changes, consumption of services might

change. For example, a newly married couple might prefer
romantic holidays, but once they have children they would
prefer family vacations where there are plenty of activities to
entertain kids. Teens and youth might prefer adventure
holidays whereas senior citizens would probably prefer more
relaxing vacations.
4 I’s of Services-
Inflexibility
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The tourism industry is highly inflexible in terms of capacity. The
number of beds in a hotel or seats on a flight is fixed so it is not possible
to meet sudden upsurges in demand similarly restaurants tables, hotels
beds and flights seats remain empty and unused in periods of low
demand.

Inventory / Perishability

It is related to the fact that travel products are intended to be consumed

as they are produced. For example, an airline has seats to sell on each
flight; a hotel has rooms to sell for each night. If the airline is not able to
sell all its seats on its flight, or a hotel is not able to sell its rooms for the
night then the opportunity to sell the product is lost forever. Service
sector cannot keep inventory like products. To overcome this problem,
the travel industry has come up with various marketing strategies. One is
to overbook. An airline overbooks its seats to a certain extent in
anticipation that even though certain customers do not turn up but the
flight will be fully seated. Another strategy is multiple distributions. For
example a customer can buy an airline ticket from an airline, tour
operator or from a travel agent. The chances of perishability are reduced.
If the tourist cannot visit the place, the opportunity is lost. Hence, this
becomes one of its important characteristics.
Inconsistency

A general norm is that in Travel and Tourism industry the product or the
package of the tourism can be standardized i.e. for example of 2 days 3
night in so and so hotel, but the actual experience of consuming this
package is highly inconsistent. We hear a lot of travel stories which
becomes a portrayal of a lot of bad experiences for example the tourist

~ 39 ~
guide may not be good, the hotels lodging and boarding was bad etc.
Therefore there is high level of inconsistency prevailing.
Intangibility

Travel products cannot be touched as they include flight experience on

an airplane, cruise on an ocean liner, a night’s rest in a hotel, view of the
mountains, a visit to a museum, a good time in a night club and much
more. These products are experiences. Once they have taken place they
can only be recalled and relished.

PEST Analysis For SOTC

Environmental influences can be analyzed by using the PEST analysis.

~ 40 ~
Political
The political factors are the main driving force of the industry. The
Indian tourism industry is built on the backbone of Government support
and the industry cannot sustain itself without it. The various
archaeological sites and the places of historical importance, the roads
and the railways are all in the hands of the Government. All the support
services like the hotel industry, the airlines industry and the tourist
operators to name some are heavily dependent on the support and the
cooperation of the Government. 
The major reason as to why tourists visit India is for the vast and rich
heritage that our country has. That is under the control of the
Government, through the Archaeological Survey of India. Any policy
change that comes into force can have dramatic effect on the way the
industry players perform. For example, the Government charges high
rates of taxes on the luxury and the star category hotels and this has
always been a cause of disagreement between the hotel associations and
the Government. There are many areas where the growth of tourism has
not been rapid or has seen dramatic fall because the political
environment has not been conducive. Examples are the North East for
the former and Kashmir for the latter. The neglect of the Government in
developing the North-East has led to a situation where there is
practically no tourism in the seven states.  
Similarly, the political turmoil in the state of Kashmir and now in
Gujarat has caused a virtual decimation of the flourishing tourism
industry. However, there has been a change in many of the policies of
the Government with regard to the tourism industry. The hotel industry
has been getting many incentives and many State Governments are
encouraging the growth of major hotels in their states.

~ 41 ~
Euromonitor International's Travel And Tourism in India report states
that the Government of India increased spend on advertising campaigns
(including for the campaigns ‘Incredible India’ and ‘Ahithi Devo Bhava’
- Visitors are like God) to reinforce the rich variety of tourism in India.
The ministry promoted India as a safe tourist destination and undertook
various measures, such as stepping up vigilance in key cities and at
historically important tourist sites. It also deployed increased manpower
and resources for improving security checks at key airports and railway
stations. 

Economic:

The tourism industry not unlike the other industries grows with the
increase in the spending of the people. The more the people spend the
more the industry grows. The spending power of the people has been
increasing in the country and all over the world. Since we are
concentrating on the international tourists, the large increase in the
spending power in most developed countries has left a large amount of
idle cash in their hands. This has led to a tourism boom the world over
and India has been no exception. There have been more people coming
into the country with more cash than ever before. This has lead to an
increase in the demand for better hotels. People who previously used to
come to the country on a shoestring budget and hunt around for the
cheapest accommodation can now afford to go in for luxury hotels. This
has led to an increase in the number of hotels in the country. However,
an increase in spending does not only limit itself to accommodation. The
increase in the spending is also evident in the increase in the number of
people traveling by air. Even the number domestic tourists traveling by
air has dramatically gone up.

~ 42 ~
A study Conducted by Ministry of Tourism about the Foreign tourist
arrivals in India. Tourism Industry is growing over the years.
% %change(2008/200
Month 2006 2007 2008 change(2007/2006) 7)
Jan. 459489 535631 591337 16.60% 10.4
Feb. 439090 501692 561393 14.30% 11.9
March 391009 472494 541478 20.8 14.6
April 309308 350550 384203 13.4 9.6
May 255008 277017 200840 8.6 8.6
June 278320 310364 340159 18.5 9.6
July 337332 399866 429856 17.8 7.4
August 304387 358446 391423 1.3 9.2
Septembe
r 297891 301892 330874 13.6 9.6
October 391399 444564 452566 20.3 1.8
November 442413 532428 521247 10.2 -2.1
December 541571 596560 521990 14.3 -12.5
Source :- Ministry Of Tourism

Social:
Tourism was always looked upon as something that led to the
destruction of the social fabric of a place. The more the amount of
outside people coming into a place, the more the perceived risk of that
place losing its identity. A good example is Goa. From the late 60's to
the early 80's when the Hippy culture was at its height, Goa was a haven
for such hippies. Here they came in thousands and changed the whole
culture of the state. This had a ripple effect on the country. People
became cautious, especially of the international tourists.
However some places such as Kerala and Rajasthan have been able to
strike a balance between their own culture and the demands of the
international tourists and have profited handsomely in the bargain.
People are now adopting themselves to the fact that tourism pays and it
can be a major source of income for them. 
In addition, tourism as a form of recreation has really caught on. People
~ 43 ~
themselves have started traveling and are willing to travel to a place that
is out of the way and exotic. While traditionally traveling on a holiday
meant going to a hill station or a beach, now people are willing to go in
for adventure tourism and also visit places that might be exotic and
cannot really be called hospitable. For example, now places like Leh and
Lakshadweep are mentioned in the same breath as Goa or Kashmir.

Technology:
Although technology does not seem to be a major influence at first
glance, it plays a major part in the promotion of a place. Better
communication facilities are one of the first prerequisites for growth in
the inflow of tourists. This has been made possible with technology.
Improved technology in the field of communication at cheaper costs has
resulted in many remote and inaccessible areas of the country getting
connected to the rest of the world. This connectivity has made these
places visible to the world. Better communication means access to
media. And that is very important if any place wants to be on the world
tourist map. 
Similarly online ticket booking and better transportation facilities have
lead to a dramatic increase in the number of tourists visiting any parts.

SWOT Analysis for SOTC

~ 44 ~
Strength-
1) India`s largest outbound tour operator.
2) Offices in all major cities of India.
3) Tie ups with other tour operators and travel agents across India.
4) Effective promotional campaigns like Experiencing the Magical
moments of Yash Raj Films with SOTC.
5) Internet booking of tickets and packages.
6) Cost Saver tours designed by SOTC, keeping in mind the budget of
the traveler, without compromising on sightseeing and basic
holiday needs.
7) Created new markets through innovative packages namely
`BhramanMandal` dedicated to Marathi speaking population and
`Gurjur Vishwadarshan` brand dedicated to Gujarati speaking
population.

Weakness-
1) Not Focusing on Rural areas and Indian railway networks
2) Lack of corporate offices and small city offices across the nation
3) Feedback system exists for namesake.
4) Ineffective customer services.

Opportunities-
1) Increase in NRI Population
~ 45 ~
2) Increase in per capita income.
3) Increasing trend of exploring India
4) Increase in online booking
5) Increase of Government support for tourism.
6) Increase in outbound International Traveler Market
7) Increase in number of tourists for upcoming sports events in India like
Commonwealth Games, 2010 and Cricket World Cup, 2011.

Threats-
1) Economic conditions
2) Security
3) New entrants
4) Local Travel Agents and travel companies.
5) Competitors

PORTER’s Five Forces Model for SOTC

1. Threat of New entrants

~ 46 ~
 Lowered consumer search costs and decreased switching cost open
up a market for Potential new entrants , this reduces the entry
barrier for new companies by opening the distribution channel and
Capital requirement
 Internet is one of possible bye pass instrument through which new
entrants can enter the market, this can reduce entry barrier for new
entrants.

2. Rivalry Among Existing Firm within the Industry

 For SOTC biggest rivalry in India is From Cox and Kings ,

Thomas Cook
 The Internet brings many more companies into competition with
one another by expanding geographical markets and reduce entry
barrier, it can raise the rivalry within the industry and increase the
pressure for price discounting. For Example Makemytrip.com,
Travelguru, Yatra.com etc.

3. Power of Supplier

 By reduced entry barrier and increasing number of competitors the

power of supplier will increase.

4. Power of Buyer

 The reduced Switching costs of Buyer also increase the bargaining

power of buyer.
 The customer can easily compare different prices and gain
knowledge about products, thus prices becomes the most important
criterion.

5. Threat Of Substitutes

~ 47 ~
  Similar Products and services offered by the competitors at
cheaper rates.
 Internet tourist sites like makemytrip.com, yatra.com etc.
offers new possibilities and instruments to meet customer
needs by offering new products and services which could
substitute existing ones

Marketing Plan for SOTC( Religious tour to

Vaishno Devi)-
Vision-

~ 48 ~
“SOTC vision focuses on providing all travel and travel-related services
to travelers from, within and to India”

Mission and objectives-

To create value for all religious people, giving them all comfort and
convenience from the start to the end of their journey.

4P’s of Marketing Plan-

 Product-
A SOTC religious tour offers following services for all the
devotees who have taken our religious tour package-
1) Pick and Drop services would be provided at various places in
northern India i.e. New Delhi, Jalandhar, Chandigarh etc.
2) Boarding and lodging
3) Tour guide and taxi cab service.
4) Free breakfast coupons will also be provided.
5) Water bottles and soft drinks also provided.
6) Pooja thaal and other religious material would be provided by
SOTC to avoid any inconvenience like long queues.
7) Tie up with Shrine Board in order to provide dinner to all
devotees at Bhawan.

 Price-
~ 49 ~
 This religious tour will cost you -

1) 3 days and 2 nights stay would cost you Rs 7999/- onwards.

2) 20% discount would be given to customer who will use
chopper.
3) 30% discount would be given to customers staying in a
luxurious room in hotels.
4) Budgeted hotels are also available for the customers.

 Place-
Customers can buy tickets and package from the following places-
1) Online booking at SOTC.in
2) Local tour operators and travel agents.
3) SOTC branches and outlets
4) Tie up with SBI and ICICI Banks for the sale of tickets.

 Promotion-
There are various promotional campaigns through which SOTC
can promote this religious tour like-
1) Advertisements on all bhakti channels and all radio channels of
Northern India.
2) Brochures and pamphlets would be distributed along with
newspapers.
3) Postures will be displayed at all temples.

 Segmentation-
1) AGE GROUPS- 50 and above.
2) Geographical- Northern region
~ 50 ~
 3) Religious people

PROJECT OUTCOMES AND

RECOMMENDATIONS-
Through this project we came to know about the current scenario of
tourism industry in India with respect to the world. We also came to
know about SOTC, it`s brands, how SOTC uses the 7P`s of marketing
and how it segmented the market. This project also tells us about the 4
I`s of services in tourism industry, PEST analysis, like how various
sectors of environment affects the tourism industry, SWOT analysis of
~ 51 ~
SOTC. In spite of having so many strengths, SOTC also have so many
weaknesses like shortage of branches and offices across India,
ineffective customer services, not focusing on rural areas and Indian
railway network. In order to avoid any inconvenience to its customers, it
should open new branches, more effective online ticket booking
facilities and focus on small cities and towns. Through porter`s five
forces model we have learned about the external environment of SOTC,
like rivalry among competitors, threat of new entrants in tourism
industry, it should focus on it`s online ticket booking facilities to restrict
online tourism provider like makemytrip.com, yatra.com. We have also
made a separate marketing plan for SOTC`s religious tour to Mata
Vaishno Devi which will be beneficial for all devotees visiting Vaishno
Devi for worship.

References:
1. www.sotc.in
2. www.ibef.org
3. www.tourism.gov.in
4. SOTC branch Central Plaza
5. www.google.com
6. www.bplan.com
7. www.kuonitravels.com
8. Times of India Newspaper

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