Analysis of marketing strategies of selected travel agents

Presented by:Puneet kaurMBA-IB

Textile is one of India’s oldest industry.

It is the second largest employment generator .

The industry uses a wide variety of fibres .

India contributes to around 12 percent of the world's production of cotton yarn and textiles

Indian Textile Industry

India covers 22 percent of the global market. India is known to be the third largest manufacturer

of cotton across the globe. India claims to be the second largest manufacturer

of yarn and textiles in the world.

SPORTKING INDIA LTD.

HISTORY

Sportking India Ltd. Was Incorporated on 15-02-1989 & promoted by Sh. Raj Kumar Avasthi & his family members.

Other Companies of Sportking Group

M/s. Sportking Knitwear’sClassis Wears Pvt. Ltd.M/s. Aradhan Knitwear’sM/s. Sportking ExportsNamokar Capital Services Pvt. Ltd.

Markets

USA: target stores, JC Penny, Hagger, Li and Fung, Mother Works, Costoc, Urban Outfitters, C.A.G., HMX Sportswear and Walt Disney.

EUROPE: George and Tom Tailor.

Domestic : Pantaloon, Shopper’s Stop, Lifestyle, Pepe Jeans, Max (Dubai and India), Pyramid, Big Bazaar, Westside. They also have a license for the manufacturer of Walt Disney branded garments for India.

Conti….

Classic Wears Pvt. Ltd.

Classic Wear Ltd. was established in the year 1987 in Noida. Shifted from Noida to Ludhiana in the year 1988 having a change in name “Classis Wears Private Limited”. Presently it is situated at Village Meharban, Rahon Road, Ludhiana.Presently Classic Wears is a leading manufacturer of Knitwear for gents, ladies and kids in Northern IndiaProduction capacity of 1, 50,000 pcs.

Business Philosophy

‘TO GROW’

Quality policy is:

“TO MEET THE COMMON PEOPLE NEEDS”

MISSION

Sportking group is committed to add value to the socio economic growth through excellence and adapting to the state of the art technology in both business and education. Our group is dedicated to deliver superior values to its customer, shareholders, employees and society.

VISION

To create a learning space of International Repute for professional Excellence in Fashion and Business.

ORGANISATIONAL CHART

SWOT Analysis Of Classic Wears Pvt. Ltd.

Strengths Established brand Name ‘Sportking’. One of the oldest known fabric manufacturers.Most experienced technical manpower.Dyeing and spinning units are in the nearby area.

WeaknessesFluctuations in the international prices of the integrants of the acrylic fiber.Do not have enough retail outlets.Less advertisement of the brand.

OpportunitiesBetter utilization can be made with new machines.Can go directly to the end users through exclusive showrooms.Improvement in distribution chain-number of dealers and retail shops in the urban and semi urban areas.

Threats The concern is facing competition from existing and upcoming units in the industry.Fluctuations in the prices of raw materials.Low quality cheaper products available in the market of local brands. 

Financial Analysis Ratios analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions.

Liquidity ratio: A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. 

Current ratio:

0

0.5

1

1.5

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2.5

3

ratio

curent ratio

year

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2006-07

2007-08

2008-09

Quick ratio:

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

ratio

Quick ratio

year

2005-06

2006-07

2007-08

2008-09

Absolute Cash Ratio

0

0.05

0.1

0.15

ratio

acid test ratio

year

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2007-08

2008-09

Debtor turnover ratio

0

0.5

1

1.5

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2.5

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ratio

D.T.R.

year

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Creditor turnover ratio

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C.T.R.

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Leverage ratio

0

0.5

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ratio

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rati

o

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2008-09

Tourism Industry

History

The word tourism was used by 1811 and tourist by 1840. In 1936, the League of Nations defined foreign tourist as "someone traveling abroad for at least twenty-four hours". Its successor, the United Nations, amended this definition in 1945, by including a maximum stay of six months.

India’s tourism industry is experiencing a strong period of growth, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to promote ‘Incredible India’.

Current scenario

A travel agency is a retail business, that sells travel related products and services to customers, on behalf of suppliers, such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products.

Travel agency

commission

How do travel agency work?

General Sales Agents for Foreign Travel Companies. Business and Commercial Travel Agencies. By Class. Cargo Travel Agencies. Online Travel Agencies. Multi-Destination and Niche Agencies.

Types of agents

Growth

Growing at the average annual rate of 4 %.

Tourism in India

The largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India.

The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

Types of tourism in India

Adventure tourismWildlife tourismMedical tourismPilgrimage tourismEco tourismCultural tourism

Analysis of marketing strategies of selected travel agents

Objectives of study

To find out the travel agency which provides better product.

To find out the most preferred agency by the customers.

To analyse the marketing strategies of the selected agents.

Need of the study

This study is not conducted, before this no such research is conducted in Ludhiana region. Another reason of conducting this research is to know whether travel agencies have been affected by the upcoming trend of online availability of agents. This research was also conducted to know what kind of travel is prevailing in Ludhiana.

Research Methodology

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data; making deduction and reaching conclusion; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

Research Design: Descriptive research design Sampling: Universe: It is the infinite number of respondents. All

the travel agents. Population: It is the part of universe from which the

samples for conducting the research is selected. All the travel agents in Ludhiana.

Sample Size :5 respondents. Sampling Technique: Convenience of time and

place. Methods of Data Collection: Primary :

Questionnaire. Secondary Data: Internet.

Research Design: Descriptive research design

Sampling:

Universe: It is the infinite number of respondents. All the customers traveling through travel agencies.

Population: It is the part of universe from which the samples for conducting the research is selected.All the customers traveling through travel agents in Ludhiana.

Sample Size :5 respondents.

Sampling Technique: Convenience of time and place.

Methods of Data Collection: Primary : Questionnaire

Secondary Data: Internetcompany brochures

Limitations of the study

Some of the respondents did not bothered to answer all the questions.The travel agents were not revealing their marketing strategy.The study is restricted to Ludhiana region.There may be wrong or biased responses from the respondents.

Data Analysis and Interpretation

Table 1: Shows kind of package provided by the agents

Option No. of

respondents

Percentage

Family 5 100%

educational 1 20%

Medical 1 20%

Personal 4 80%

N=5

Table2: Shows the time of offering package

OptionNo.of

Responses

Seasonal 1

Regular 4

N=5

Table3:Shows the competition strategies of the selected travel agents

OptionNo.of

Responses

Price 1

Service 2

Both 2

N=5

Table4:Shows whether travel agents provide special services to their customers or not

OptionNo.of

Reponses

Yes 5

No 0

N=5

Table5:Shows factors while choosing any location and setting up of an agency

OptionNo.of

ResponsesGovt. policies 2Subsidies 0Communiaction 3Destination 4Transportation 3Others 1

N=5

Table6:Shows whether selected travel agencies have branches or not

OptionNo.of

Response

Yes 4

No 1

N=5

Table7:Show promotional strategies of an agent

OptionNo.of

Response

Internet 4

Newspaper 4

Hoardings 1

Magazines 1

Advertisement 2

N=5

Table8:Shows current market position of the selected travel agents

OptionNo.of

Response

Stable 3

Fluctuating 2

N=5

Table9 shows the purpose of people visiting travel agencies

OptionNo.of

Response

Official 4

Education 3

Personal 5

Medical 1

Any Other 1

N=5

Table10:Shows the kind of service Provided by travel agents

OptionNo.of

Responses

Domestic 0

International 0

Both 5

N=5

Table11 Shows their mode of charging payment

OptionNo.of

Response

Credit card 3

EMI 0

Cash 4

Cheque & DD 1

N=5

Table12 Shows the speciality of the selected travel agents

option no.of responsebus tour 2cruise 5luxury hotels & villas 5train 1car rentals 3flight 5private island 2vacation package 4chalets 2hotels 4

N=5

Customer’s perspectives

Table1:Shows whether customer prefer travel agency or not

OptionNo.of

Responses

Yes 88

No 1

N=89

Table2 Shows the frequency of visiting travel agency by the customer

Option

No.of Respones  

MeanScore

Always(5) 17 85  

Often(4) 16 64  

Sometimes(3) 37 111 3.8

Rarely(4) 19 80  

Never(1) 0 0  

  89 340  

N=89

Table3 Shows ways to choose travel agency

Option

No.of Responses

Through Friends & Family 43

Through internet 35

From Advertisement 20

Others 2

N=89

Table4 shows most preferred destination by the customers

OptionNo.of

Responses

Domestic 47

International 52

N=89

Table5:Shows the kind of agents preferred by the agents

OptionNo. of

Responses

Online agents 30

Travel agents 65

N=85

Table6:Shows kind of services people avail from travel agents

OptionNo.of

Responses

Ticket booking 32

Hotel Confirmation 24

Consultancy 19

Entire Travel Package 45

N=89

Table7:How much time does customer prefer to spend at travel agencies?

OptionNo.of

Responses

<Half an hour 49

Half an hour to one hour 30

>One hour 10

N=89

Table8:Shows frequency of visiting travel agency by the customer

FrequencyNo.of

Response

1 35

2 36

>2 17

N=88

Table9(a):Shows travel agency keeps in touch with customers, liked by customers

Option

No.of Responses  

Mean score

Strongly agree(5) 26 130  

Agree(4) 31 124  

Neutral(3) 22 66 3.75

Disagree(2) 4 8  

Strongly disagree(1) 6 6  

  89 334  

N=89

Table9(b):Do customers like to inform them about their new offers by travel agencies?

Option

No.of Responses  

Mean score

Strongly agree(5) 30 150  

Agree(4) 36 144  

Neutral(3) 19 57 3.98

Disagree(2) 2 4  

Strongly disagree(1) 0 0  

  87 355  

N=87

Table 9(c):Shows behavior of customers towards the receiving info about pros and cons of trip

OptionRespons

es  

Mean score

Strongly agree(5) 53 265  

Agree(4) 21 84 4.32

Neutral(3) 11 33  

Disagree(2) 1 2  

Strongly disagree(1) 1 1  

  87 385  

N=87

Table9(d):Shows whether customer likes that the travel agents take full initiative in planning the whole trip

Option

No.of Response  

Mean score

Strongly agree(5) 37 185  

Agree(4) 34 136 4.17

Neutral(3) 10 30  

Disagree(2) 6 12  

Strongly disagree(1) 0 0  

  87 363  

N=87

Table10(a):Shows the necessity of accomodation as an aspect of journey

OptionNo.of

Response

Compulsory 73

Optional 14

I don’t know 2

N=89

Table10(b):Shows the necessity of transport as an aspect of journey

OptionNo.of

Response

Compulsory 61

Optional 24

I don’t know 2

N=87

Table10(c):Shows the necessity of entertainment as an aspect of journey

Optional No.of

Response

Compulsory 41

Optional 40

I don’t know 8

N=89

Table10(d):Shows the necessity of safety as an aspect of journey

OptionNo.of

Response

Compulsory 61

Optional 20

I don’t know 5

N=86

Table10(e)Shows the necessity of insurance as an aspect of journey

OptionNo.of

Response

Compulsory 32

Optional 38

I don’t know 12

N=82

Table10(f):Shows the necessity of other additional features as an aspect of journey

OptionNo.of

Response

Compulsory 3

Optional 6

I don’t know 6

N=15

Table11:Shows the rating of quality of travel agencies

N=89

Option   Mean RankGood communicative practice 245

245/89=2.75 2

Trust worthiness 233233/89=2.61 1

Professional knowledge 251251/89=2.82 3

Friendliness of staff 264264/89=2.96 4

Fair cost 286286/89=3.21 5

 Table12:Shows the preference of customers for choosing travel agents in Ludhiana

AgentsNo.of

Responses

Thomas cook 34

SOTC 34

Sagger world holidays 10

Royal travels 16

Pan express ltd 2

Any other 11

N=89

Table13:Shows satisfaction of customers from the opted agencies

OptionNo.of

Response

Yes 89

No 0

N=89

Analysis and Findings

•It has been analyzed that in Ludhiana mostly there is personal and business tourism.•As compared to others Thomas cook and sagger world holidays provide good and variety of the products.•Thomas cook and sotc are the most preferred brand names in Ludhiana.•Pan express ltd compete on the basis of price in the market whereas all other 4 agencies compete on the basis of quality and prices both.

Internet is the most widely used sources by the travel agencies to promote their agencies.

All the selected travel agents provide special packages and offers to retain their old customers.

Pan express ltd (Ajanta airlines has been at the 3rd position in the market), whereas thomas cook and sotc has leading in this field since last 5 years.

Customers in Ludhiana still prefer to go to an agent and get their travel packages designed, despite of entering of online system in the market.

Customers are satisfied from the services of the chosen travel agents.

Internet is the most preferred source of advertisement by the travel agents.

Pan express ltd and royal travels do not use internet to promote their agency, whereas other

Agents prefer internet and newspaper the most as well as the magazines.

Emi system is yet not the mode of payment to the travel agents

As per the research Thomas cook and sotc are the most preferred agents. it has been analyzed no other kind of tourism prevails in Ludhiana other than business and personal. quantified results shows that 30% people in Ludhiana now go for online agents, whereas still 70% people go for travel agents. although many new travel and large number of travel agents are coming up Thomas cook, sotc and Ajanta airlines ltd have managed to carry constant and growing position in the market. people in Ludhiana are more towards leisure and business trips.

Conclusion