CHUTTI ON WHEELS

INTRODUCTION

The World Travel and Tourism Industry calculated that tourism generated INR 6.4 trillion i.e. 6.6% of the nation's GDP in 2012.

It supported 39.5 million jobs, 7.7% of its total employment. The sector is predicted to grow at an average annual rate of 7.9% from 2013 to 2023. This gives India the third rank among countries with the fastest growing tourism

industries over the next decade. Some other aspects of its tourism infrastructure remain somewhat underdeveloped

however. The nation has very few hotel rooms per capita by international comparison and low ATM penetration.

India's rich history and its cultural and geographical diversity make its international tourism appeal large and diverse.

Most visited cities in India:Agra, Kashmir, Goa, Kanykumari, Jaipur & Udaipur, Kerala, Delhi, Ahmedabad, Mysore, Ajanta Ellora.

Objective and Need of Study As the statistics above suggest, the tourism industry in India is

burgeoning exponentially and provides a vast scope for neophytes like ourselves.

To compete in such an environment we as beginners must attract the tourists by providing them with something refreshingly different.

Hence, we have come up with a totally new concept which is yet to find its footing in India.

Our Business Idea is “CHUTTI ON WHEELS”.

CHUTTI ON WHEELS- Where Adventure and Luxury Go ‘HAND in HAND’

CHUTTI ON WHEELS- Where Adventure and Luxury Go ‘HAND in HAND’

“CHUTTI ON WHEELS” is India’s first caravan based tourism company. The idea, as the

name suggests, is to provide our customers with the luxury of travelling in a Hotel.

OUR MISSION: The mission of “CHUTTI ON WHEELS” is to be the leading Caravan based travel and related services company of choice, providing premier services and an entirely exotic experience to all customers.

“CHUTTI ON WHEELS” is provided in 3 different sizes :-

1. MINI (Small)- For 4 people.

2. STANDARD (Medium)- For 8 people.

3. JUMBO (Large)- For 12 people.

“CHUTTI ON WHEELS” comes in the given 3 packages :-

1. Regular- Normal Comfort & Facilities (1000 INR)

2. Supreme- Extra Comfort & Facilities (1500 INR)

3. Deluxe- Ultra Comfort & Facilities (2000 INR)

• NEW GOVT. REGULATIONS THAT MIGHT NOT SUPPORT THE BUSINESS

• OTHER TOUR PLANNERS• PEOPLE STEREOTYPING

TRAVELLING/ VACCATIONS TO TRADITIONAL WAYS

• ECONOMIC CRISIS EFFECTS ON TOURISM

• TRAVELLERS LOOKING FOR A DIFFERENT APPROACH TO TRAVEL

• VARIOUS INCENTIVES & CONCESSIONS EXTENDED BY THE GOVT.

• REGULAR FLOW OF TOURISTS• UNIQUE THUS LESS

COMPETITORS

• NEW BRAND: TRUST ISSUES• LESS VARIETY OF FOOD• HARD TO REPLACE TRADITIONAL

WAYS• COULD BE UNCOMFORTABLE FOR

PEOPLE OF OLD AGE GROUP

• INNOVATIVE CONCEPT• FLEXIBLE• CONVENIENT- FACILITIES

AT EACH DOORSTEP• ADVENTUROUS AND

LUXURIOUS• INSTANT BACKUP• SECURITY

STRENGTHS WEAKNESSES

THREATSOPPORTUNITY

Research Methodology Research Tool- Questionnaire

a) Online- https://docs.google.com/forms/d/13iYONgvMkOdWmWoegJa2ePKW5gD2X-fFgi73vdg0P00/viewform.

b) Hard-copy

Data- Primary and Secondary data.

Sample Size- 185.

Sample Procedure- Convenience and random sampling.

Data Analysis Tool- Ms Excel, Clustering Process, Bi- Variate Analysis.

ANALYSIS AND INTERPRETATION OF DATA

Analysis Geographic :- 79%-(North), 8%-(West), 5%-(Central). 45%-(Metropolitan), 32%-(Tier1), 23%-(Tier2). Demographic :- Age: 64%- (21-25), 14%- (>41). Gender: 53%- (Female), 47%- (Male). Family Size: 55%- (2-4), 32%- (4-6). Income: 30%- (5-10 lpa), 24%- (10-15 lpa). Behavioral :- Usage Rate(year): 57%- (once ), 35%- (2-3 times). Duration(weeks): 55%- (<1), 41%- (1-2). Readiness Stage(Awareness): 84%-(No), 16%-(Yes). Attitude: 44%-(Interested), 25%-(Highly Interested). Psychographic :- Personality: Planned, Unplanned & Impulsive Travelers: 59%,26%,15%. Lifestyle: Highly, Moderately & Less Active: 37%,53%,10%. Lifestyle: Highly, Moderately & Less Adventurous: 22%,64%,14%.

SEGMENTATION USING BI-VARIATEGeographic

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

Metropolitan Big City Small city

0

5

10

15

20

25

30

35

12345

Num

ber o

f Peo

ple

SEGMENTATION USING BI-VARIATEDemographic

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

Metropolitan Big City Small city

0

5

10

15

20

25

30

< 1000 INR1000-2000 INR2000-3000 INR3000-4000 INR> 4000 INR

Num

ber o

f Peo

ple

SEGMENTATION USING BI-VARIATEDemographic

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

Metropolitan Big City Small city

0

5

10

15

20

25

30

< 1000 INR1000-2000 INR2000-3000 INR3000-4000 INR> 4000 INR

Num

ber o

f Peo

ple

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

North India

South India

East India

West India

Central India

Metropolitan Big City Small city

0

5

10

15

20

25

30

35

40

< 22-44-66-8> 8

Num

ber o

f Peo

ple

SEGMENTATION USING BI-VARIATEDemographic

1 2 3 4 50

5

10

15

20

25

30

35

40

45

FemaleMale

Level of Interest(1-Least, 5-Maximum)

Num

ber o

f Peo

ple

SEGMENTATION USING BI-VARIATE Behavioral

< 1 week 1-2 weeks 2-4 weeks < 1 week 1-2 weeks 2-4 weeks < 1 week 1-2 weeks 2-4 weeksMetropolitan Big City Small city

0

5

10

15

20

25

30

35

40

45

50

North IndiaSouth IndiaEast IndiaWest IndiaCentral India

Num

ber o

f Peo

ple

Cent

ral I

ndia

East

Indi

a

Fore

ign

Natio

nal

Nort

h In

dia

Sout

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dia

Wes

t Ind

ia

Cent

ral I

ndia

East

Indi

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Nort

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Sout

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dia

Wes

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ia

Cent

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East

Indi

a

Nort

h In

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Sout

h In

dia

Wes

t Ind

ia

Metropolitan Big City Small city

05

101520253035

YesNoNever heard of

Num

ber o

f Peo

ple

SEGMENTATION USING BI-VARIATEPsychographic

Met

ropo

li-ta

n

Big

City

Smal

l city

Met

ropo

li-ta

n

Big

City

Smal

l city

Met

ropo

li-ta

n

Big

City

Smal

l city

Met

ropo

li-ta

n

Big

City

Smal

l city

Met

ropo

li-ta

n

Big

City

Smal

l city

North India South India East India West India Central India

0

5

10

15

20

25

30

35

40

Light (Ex: light walking)

Moderate ( Ex: walking, light sporting activities)

Very Active (Ex: hiking, biking, moun-tain climbing, river crossing)

Num

ber

of P

eopl

e

Nor

th

Indi

a

Sout

h In

dia

East

Indi

a

Wes

t In

dia

Cent

ral

Indi

a

Nor

th

Indi

a

Sout

h In

dia

East

Indi

a

Wes

t In

dia

Cent

ral

Indi

a

Nor

th

Indi

a

Sout

h In

dia

East

Indi

a

Wes

t In

dia

Cent

ral

Indi

aMetropolitan Big City Small city

05

1015202530354045

Highly Adventurous ( visit only unique tourist spots)Little Adventurous (visit only popular and well-known tourist spots)Moderately Adventurous ( visit both unique and popu-lar tourist spots)

Num

ber

of P

eopl

e

SEGMENTATION USING BI-VARIATE Psychographic

Met

ropo

litan

Big

City

Smal

l city

Met

ropo

litan

Big

City

Smal

l city

Met

ropo

litan

Big

City

Smal

l city

Met

ropo

litan

Big

City

Smal

l city

Met

ropo

litan

Big

City

Smal

l city

North India South India East India West India Central India

0

5

10

15

20

25

30

35

40

45

50

Planned holiday travellerUnplanned holiday travellerImpulsive holiday traveller

Num

ber o

f Peo

ple

PROFILING

SEGMENT A “PIONEERS”

(INNOVATORS) PLACE: Metropolitan/tier1 REGION: West India AGE: 41-50 INCOME: 15 Lakhs/Annum FAMILY MEMBERS: 2-6 GENDER: Both Male/Female PRICE WILLING TO SPEND: 1000-2000

INR/Head/Day DURATION: 1-2 Weeks CONCEPT: Not heard of

SEGMENT B “ENTERPRISERS”

(EXPERIENCERS) PLACE: Metropolitan/tier1 REGION: North India AGE: 21-25 INCOME: >15 Lakhs/Annum FAMILY MEMBERS: 2-4 GENDER: Both Male/Female PRICE WILLING TO SPEND: 1000-

2000 INR/Head/Day DURATION: <1 Week CONCEPT: Not heard of

PROFILING

SEGMENT C “DITHERERS”

(STRIVERS) PLACE: Big City/tier2 REGION: North India AGE: 21-25 INCOME: 12.5 Lakhs/Annum FAMILY MEMBERS: 2-4 GENDER: Both Male/Female PRICE WILLING TO SPEND: 1000-2000

INR/Head/Day DURATION: 0-2 Weeks CONCEPT: Not heard of

SEGMENT D “PAROCHIALS”

(BELIEVERS) PLACE: Small City/tier3 REGION: North India AGE: >50 INCOME: 7.5 Lakhs/Annum FAMILY MEMBERS: 4-6 GENDER: Both Male/Female PRICE WILLING TO SPEND: 1000

INR/Head/Day DURATION: <1 Weeks CONCEPT: Not heard of

Consumer Targeting “CHUTTI ON WHEELS” will be available in 3 different price and size ranges as discussed above. Initially consumers from North India will be targeted. Initially, major focus will be on the Metropolitan cities. Tier 1 and Tier 2

cities will be targeted once the concept is established. Holiday destinations will initially be planned for hilly and coastal regions. Example: Jammu and Kashmir

PROMOTIONAL MIX• Marketing Strategy: segment marketingADVERTISING:

– Promotion by tour planners – Print Ad/Poster– Web Page– Banner ads– Television

DIRECT MARKETING:– Outdoor advertising– Online display ads

BUDGET FRAMEWORK Television :- Average Cost of 10 sec commercial during prime time (9 PM -10 PM) is 2.5 Lac. Cost of commercial on News channel is Rs 1 Lac. Prime Channel Cost=2.5*3*12=0.9 Crore (Quarterly). News Channel Cost=2*7*12= 1.7 Crore (Quarterly). Total : 2.6 Crore.

Billboards :- Cost of printing per advertisement is Rs 25000. 10 cities , 5 banners per city. Rent for hoarding place is Rs. 10000 per quarter. 250 Hoardings in 20 cities (Rs.10000 per hoarding). Total Cost=10000*250+25000*100+10000*100=60 Lac. Total: 0.6 Crore.

BUDGET FRAMEWORK Internet :- CPC: Cost per click, CPM: Cost per thousand impressions

(M = thousand in Latin). CPC simply means that you pay when someone clicks on the ad while CPM means that you pay for each 1,000 people who have seen it

Both cost models use a bidding system – an auction – and the cost depends on what other advertisers are willing to pay for clicks or impressions from the same demographic.

Total: Variable.

Newspaper :- Total: 1 crore.

CONCLUSIONS Using the data analyzed above it is clear that the concept of ‘mobile hotel’ is

unheard of in India. Using the same data we can also conclude that mostly people are enthusiastic to

try this new concept. Hence it offers a great opportunity for the one’s willing to venture into it. So will launch our concept “CHUTTI ON WHEELS” as soon as possible. After analyzing the segmentation using bi-variate analyses we have decided to first

target the ‘Pioneers’ and ‘Enterprisers’. Once the concept is established we will try and attract ‘Ditherers’ and ‘Parochials’

as well.

LIMITATIONS1. Audience set is biased. Most of the people surveyed are between the age

of 18-22 and reside in North India.2. The concept of “CHUTTI ON WHEELS” is unheard of in India and hence it

will be difficult to replace the traditional ways of travelling currently being undertaken in it.

3. It will be hard to establish trust among people as we are a completely new brand.

4. Various services and facilities provided are less luxurious as compared to a 5 star or 3 star hotel.