A REPORT ON SEGMENTATION, TARGETING AND POSITIONING OF TOURS AND TRAVELS OF INDIA

ABSTRACT
TOURS AND TRAVELS OF INDIA is going to expand its business in southern India. The report deals with the various factors that influence in expanding the market in southern India. After studying the various factors that affect tourism industry Andhra Pradesh is the suitable place for launching business.

INTRODUCTION
TOURS AND TRAVELS OF INDIA is the tourist agency in northern India the Company wants to change its existing business portfolio and to expand their business. It offers different packages for different types of customers in the market. The board of directors decided to expand the business to southern India.

OBJECTIVES
To identify the micro and macro environmental factors that affects the tourism industry. To find the different segments in tourism industry in Indian market. To choose a targeting strategy and positioning for TOURS AND TRAVELS OF INDIA. To know about the buyer behaviour in different buying situations.

RESEARCH METHODOLY
Data can be classified in to two types depending on sources used for collection data. First one is primary data and the other is secondary data. In this report secondary data is collected from the internet and books.

THEORITICAL FRAMEWORK AND CASE ANALYSIS

ENVIRONMENT ANALYSIS:

MICRO ENVIRONMENT FACTORS 1. CUSTOMERS: Customer is one of the most important factors in micro environment of
company profile. The company has to satisfy the needs and wants of the customer and maintains strong relations with them. Here TOURS AND TRAVELS OF INDIA targets consumer market in which the company offers services for customers for personal consumption.

2. COMPETITORS: The customer value and satisfaction provided by a company must be

greater than its competitors in that industry. Competitive advantage is one of the key factors in determining company profits. Indian chardam yatra, Easy tours of India, Kesari are the some of the Competitors of TOURS AND TRAVELS OF INDIA.

3. THE COMPANY: The TOURS AND TRAVELS OF INDIA should think properly in
understanding needs and wants of the customer. Management of the company should make decisions which satisfy the customers to achieve customer value and relationships.

PEST ANALYSIS
1. ECONOMICAL ENVIRONMENT: It is the very important factor in macro environment. Economic environment consists of factors that affect the buying power of customer. As South India is a developing economy the company should very careful in pricing the service. The changing trends in the economic conditions of country severely affect the business of the company. 2. POLITICAL AND SOCIAL ENVIRONMENT: It contains laws and pressure groups which influence the organizations. Changing the government results in enforcement of new laws and regulations may affect the business of the company. In India historical places, roads and railways are under government control so other dependent sectors like hotels, tourist operators mainly needs government support. Coming to social factors visiting international tourists may lose the identity of native place example in India is Goa. In early it has hippy culture but now international culture develops there.(www.Wikipedia.org, Goa ) 3. TECHNOLOGICAL FACTORS: Technology is one of the major factors in bringing dramatic change in human life. Communication and better transport facilities have made drastic increase in tourism industry at that particular tourist place. The company should offer the service to customers by incorporating the technological improvements in future.

STP ANALYSIS
SEGMENTATION: The division of a market in to homogeneous groups of consumers, each of which can be expected to respond (oxford dictionary of Business and Management 5th Edition) Tourism industry is one of the largest employment generators in service sector. India is so diverse in culture as well as in geographic structure. Tourism market can made in to innumerable segmentations. SEGMENTATION BASED ON GEOGRAPHY: 1. CITY: Major cities where population is high, there the availability of the customers is maximum
2. CLIMATE: Southern India is hot compared to northern India, so in summer there are tours

in southern states to cold places due to hot weather. SEGMENTATION BASED ON DEMOGRAPHIC: 1. INCOME: Based on income level of customers different facilities are offered to middle class and upper middle class income level of customers.
2.

OCCUPATION: Based on the occupation of the customers different tours are offered like for students and teachers there are educational tours, and for retired ones sightseeing tours etc.

3.

RELIGION: Religious tours are offered to different religions for example Hindus are interested in tours related to temples and their religious holy places, while Muslims are interested in mosques.

SEGMENTATION BASED ON PSYCHOGRAPHY: 1. LIFE STYLE: Depending on the interests of the customer different types of tourisms like adventure, medical, sightseeing etc are offered to different customers. SEGMENTATION BASED ON BEHAVIOUR: 1. OCCASIONS: There are some occasions are occurred in India at different states like camel fare, kumbhmela, pushkar etc. On those occasions tourists in particular places is very high.

TARGETING
After studying different market segments there is need for the company to identify the target market for their business different types of target markets are

Target market is A set of buyer sharing common needs or characteristics that the company
decides to serve. (Principles of marketing, Philip kotler, 2011.) DIFFERNTIATED MARKETING: Here the company identifies the target market based on different segments present in the market. By maintaining this type of marketing company expects for high sales. This type of target market segment is suitable for TOURS AND TRAVELS OF INDIA. There are two types of marketing strategy for the above mentioned target market 1. LOCAL MARKETING: Here the firm concentrates on needs and wants of the local customers and specific stores are placed in cities for local customers. Here the store is placed to satisfy the needs of local customers. For TOURS AND TRAVELS OF INDIA this marketing strategy should be followed for better penetration of the company in to customer and to increase sales. 2. INDIVIDUAL MARKETING: Generally the company which follows concentrated market goes for this type of marketing. Since the targeting market segment is very small company goes to person individually.

POSITIONING
The positioning of the company is called value proposition. Positioning gives the customer satisfaction as well as competitive advantage. VALUE PROPOSITION: The full positioning of a brandthe full mix of benefits upon which it is positioned (Principles of marketing, Philip kotler, 2011.) Generally there are four positioning strategy followed

More for more

More for same

Same for less Less for less More for less

Since TOURS AND TRAVELS OF INDIA is new to market in south India, to achieve customer value and satisfaction it is better to follow more for less targeting strategy. MORE FOR LESS: It is the winning value proposition which offers the high quality product at low price. This strategy is useful in making customer relationships.

The positioning statement for TOURS AND TRAVELS OF INDIA is Enjoy the life time experience means the company says that the tours offered by the company gives life time experience.

BUYER BEHAVIOUR:
1.CONSUMER BUYER BEHAVIOR: It is the buying behavior of ultimate consumers the following are the factors affecting consumer buyer behavior. a)CULTURAL FACTORS: CULTURE: India is a diverse country having different cultures. One culture is different from other so people are attracted by other cultures of different places. b)SOCIAL FACTORS: FAMILY: Family relations can strongly affect the buyer behaviour. If one member of the family lives in different place from the family, then the family is needed to visit he if the place is popular in tourism then automatically then they visit surrounding tourist spots. c)PERSONAL FACTORS: INCOME LEVEL: The income level of buyer restricts him in buying the product/service without making his own choice OCCUPATION: Students and teachers are preferred for educational tours and different professionals in
visits different places according to their work needs.

2.BUSINESS BUYER BEHAVIOR: It is the buyer behavior of organizations that buys goods and services for use in the production of other goods and services (Principles of marketing, Philip
kotler 2011). The factors affecting business buyer behavior are Environmental, interpersonal,

Organizational and individual. For TATOI all the factors affect the buyer behavior in different buying situations.

LEARNINGS AND SUGGESTIONS:

Segmentation is the basic criteria for a company to concentrate on market. Positioning strategy gives a unique competitive advantage and strong customer value. A study on Micro and Macro Marketing environment factors gives a thorough knowledge about the functioning of the company.

SUGGESTED LAUNCHING STATE: After a thorough research in south Indian states, It

is inferred that Andhra Pradesh is the suitable place to launch the business of TOURS AND TRAVELS OF INDIA This state attracts nearly 153.1 million domestic tourists every year For every year it attracts nearly 21% of the total domestic tourists in India (ministry of tourism, government of India). So by studying the above statistics we came to know that Andhra Pradesh is one of the important tourist places in southern India. The population of Andhra Pradesh is nearly 84 million (AP stats published on 2011). The customers are available for the company in that state. The major cities like Vijayawada, Tirupathi, Vishakapatnam are the places to start small boutiques of the company.

CONCLUSION
Micro and macro environment factors had a strong impact in tourism industry. Segmentation helps in concentrating more on target audience. It has been identified that Andhra Pradesh is suitable state in south India for launching business.