COMPANY OVERVIEW

Focused on the leisure

An online travel
and small-business
service portal
traveller coming to India

Deep Kalra, CEO of Objective to tap the

MakeMyTrip (India) potential of the huge US$1.5
Pvt Ltd. (MMT) billion NRI market worldwide
THE TOURISM MARKET IN INDIA
Increased number of foreign tourists & increased travel by Indians to
domestic and overseas destinations.

In 2003, the number of Indians traveling abroad increased by 30% to

4.5 million.

Airlines receives 15% of their business through Internet sales.

In 2003, revenue generated $26 billion & 12% of travel services.

MAKEMYTRIP: THE COMPANY & THE PRODUCT
Offer competitively priced
V travel products – real time
booking capability.
Entire facility of travel
V services through Internet.
Addition to Airline ticket,
MMT offers Hotel booking,
V Holiday packages, car rentals,
trains & cruises for Indian &
International destinations.
Allows online booking and
V confirmation, online Web
chat and toll free number.
Offer travel insurance, access to
V business lounges and valuable
shopping discount booklets
Also offers information visas,
V
passports, insurance, travel & finance
MMT launched www.indiaahoy.com a
B2B site offering Indian Hotels and
V
tour packages for international
agents
Provide value added service like a
V free drop and pickup cab for its
clients
THE BUSINESSS MODEL & OPERATIONS
Created network of offices in New
1 Delhi, Mumbai & New York Corporate
sales
Appointed franchise partners in US, UK,
2 Australia & India Internet
sales
General
sales
Operates to separate entities:
3 MakeMyTrip - India & MakeMyTrip Inc.
(USA)
Sales
Team
Three modes of communication to
4 reach sales/customer service team –
emails, Web chats and toll free number Daily sales target for the entire team
THE BUSINESSS MODEL & OPERATIONS
Constant monitoring of the service quality given to the customer

Lack a system to track timely customer follow-up

CONCERNED
Delay in resolving a customer issue or query
AREAS
Tracking customer buying and traveling habits

Technological advancement
Online Interface with MMT Offline (After Sales) Interface

MakeMyTrip.com Interface

Real-Time Airline
Booking
MMT MMT
Customer Hotel Reservation Fed Ex
Sales (CRSs) Ticketing
System
Car Rentals
Interface Customer

Backend Operations
Airlines MMT Sales

Consolidators
MMT Web Site
Operations Content
Car Rentals

Hotels
Tour
Net Carrots
Operators
CUSTOMER SEGMENT & ADVERTISEMENT
Indian
Market

International Domestic
Traveler Traveler

Inbound Outbound
Traveler Traveler

Business Conference
Holiday Students VFRs Others
Traveler attendees
CUSTOMER SEGMENT & ADVERTISEMENT
Low PC penetration, poor quality of dialup
access
Coke

Limited credit card usage on the

Internet
Pilgrimage
BCCI
portal
CONCERNED Hesitation to make purchase on MMT
AREAS Internet

Competition from traditional brick-

and-mortar travel agent Matrimon Maruti
ial portal Udyog

Fluctuating international market conditions

COMPETITION
Expedia

Less competition from Orbit

US market

CONCERNED Aggressive advertising MMT

AREAS campaigns
Travelocity

Large customer base

Priceline
MOVING ON
Targeting inbound travellers

To move from 90-10 % split of revenues between

air tickets and travel service to a 70-3- percent split

Domestic tour packages to NRI travellers

Targeting NRI/VFR tourist segment

Expansion of operations within India

Targeting European Market

4 P’s ANALYSIS - MARKETING
4 P’s DESCRIPTION / STRATEGY REMARKS
• International and Domestic Air Tickets
Save money
• Holiday Packages and Hotels
Save time
• Domestic Bus and Rail Tickets
PRODUCT Save energy
• Private Car and Taxi Rentals
Convenient
• MICE (Meetings, Incentives, Conferences & Exhibitions)
Travel easier
• B2B and Affiliate Services
• Best Price offers
Best deal
• No middleman involved
PRICE Affordable
• Customer can choose as per budget & their income
Quickly available
• Affordable to all class of customers
• Internet marketing
No queues
• Online e-portal / e-business
Anywhere
PLACE • Dedicated 24*7 customer care support
Anytime
• 20 offices in India & 2 international offices
Anyplace
• Franchise across various location
• Promotion through social sites like Facebook, Twitter, You Tube, Magazine
Online website
• Sales promotions
Travel agents
 Festival discount
PROMOTION Communication
 Round trip ticket discount
Awareness
 Best deal of the month
 Special offers to different holiday destination
3P’s OF SERVICE MARKETING
3 P’s DESCRIPTION / STRATEGY
• Self service marketing – no direct interaction
PEOPLE • Travel agents – distributors & dealers
• 24*7 customer care service

• Customer care service

PHYSICAL EVIDENCE • National and International Offices
• Travel Agents offices

• Easy and simple process

PROCESS • Mode of payment by any bank and any card
• MakeMyTrip on Mobile
SERVICE MARKETING STRATEGY TO CREATE BRAND VALUE

• Short term travel insurance

Travel Insurance • Offers the latest travel and health oriented information

• Country specific mobile connection before departure

International SIM
• Fulfilling customers specific communication needs when traveling
Card abroad

• Online purchase & transactions facility

Forex Card • Instant & convenient access to your money in the currency of your
choice

• Welcome gifts
MakeMyTrip • Accelerated reward point system (Repeated Purchase)
Credit Card • Discount vouchers

MakeMyTrip • Individual Gifting (Birthday, Anniversary, Honeymoon, Wedding, etc.)

• Corporate Gifting
Gift Vouchers
QUESTION 1

Can MMT sustain its business model by targeting

only the inbound travelers, or does it need to look at
other markets and segments? If yes, which segments
would you recommend? If no, can they grow within
the inbound segment?
QUESTION 1

1 In 2004, 3 million inbound travelers were seen visiting India.

In 2007, this figure is estimated to go up to 5 Million at roughly

2
30% CAGR.

So, We think MMT can sustain business model by focusing on

3
Inbound Travellers.

There’s also a segment MMT can go for. Medical and Health

4
Tourism is the sector MMT hasn’t been looked up at.
QUESTION 1

India provides high quality health services with affordable

5 prices. Demand for Health Tourism is non-seasonal

MMT can also tie up with giant Hospital chains to provide

6
overseas customer with HEALTHY DEAL!!!

Due to changes in trends in IT, foreign travel of Resources is the

7
need

Corporate tie ups with middle level IT companies who lack

8 Travel Department, MMT can provide them with Travel
Solutions.
QUESTION 1

CONSUMER BEHAVIOUR
• The study by PhoCusWright in November 2003 found that flight and rental cars are
the travel services most likely to be purchased online, while offline channels still
For long term dominate the travel activities category

COMPETITION
success, MMT • The aggressive advertising campaigns from the competitor like Expedia can take the
will have to MMT market share

CHANGES IN INDUSTRY
change its • The airlines might provide substantial discounts on their websites and take MMT out
strategy of business if they don’t diversify

EMERGING MARKETS
• The high growth in India outbound travel might make this as big if not the biggest
segment in next few years. MMT cannot afford to leave this segment untargeted
QUESTION 2

Ad revenues have never been core to MMT’s

business plan. However, MMT’s role in promoting
some leading NRI-focused brands suggests that this
might be another avenue that Kalra could
investigate. Does MMT need to look at advertising as
a revenue generator?
QUESTION 2: SOME STATISTICS
Internet channel has grown the fastest since 2001,taking share
1 away from most traditional channels.

Internet advertising grew at an annual clip of 18% from 2001-2006

2
and only cable TV (10%) was close to a double digit growth rate.

Total US internet advertising was $21.2 Billion in 2007, a 26%

3
increase over 2006.

4 Consumer related advertising made up 55% of revenue.

Fostering strategic Brand alliance associated with the Indian

5
consumers is a right strategy to go ahead with.
 QUESTION 2
LET’S LOOK AT BRANDS BEING ADVERTISED Coca Cola Revenue Year over Year
Globally
1. COKE: 7.56

 Coke Registered 11 percent drop in sales after the

pesticide allegations in India in 2003 5.2
4.36 4.26
 As we can see the revenues have fallen for coke,
coke needed to pump up on marketing to persuade
the customer. Hence they needed good online and
offline reach.

 Being a good influencer for NRI and VFRs, MMT

could have been a channels coke could use in those
times. 2003 2004 2005 2006
QUESTION 2

2. MATRIMONIAL PORTALS:

 Matrimonial sites following their inception were booming due to

innovative means of finding alliance.

 Also the penetration of Internet was increasing which led to growth in

Matrimonial top line (2 million matches till date for Shaadi.com)

 There’s also a trend of marrying an Indian bride or an Indian

Bridegroom for Overseas NRI people.

 MMT would be a great point to tap such customers.

QUESTION 3

Can MMT’s business model work in other countries, in particular China,

Singapore, and the Philippines? Are there any differences in consumers
and segments in these countries that would render the model inadequate?
What might need to be changed in other countries? Could MMT expand in
a modular manner by replicating their business with overseas residents of
other countries?
QUESTION 3
• Overseas Chinese population is 50 millions which
is majorly present in Thailand, Indonesia,
CHINA Malaysia, USA and Singapore (Source:
wikipedia.org)

• Consumer segment is nearly the same due to the

similar demographics and geographies

• Setup for MMT would suffice for Chinese Market

• Addition of cheap deals for the day would
increase the top-line, which can boost their
Chinese customer base.

• Outbound customers would be more than

inbound customers, hence they’d have to focus on
them.
 SINGAPORE POPULATION
Total Population ('000) Singapore Residents ('000)
QUESTION 3 6,000.0

5,000.0

4,000.0

SINGAPORE 3,000.0

2,000.0

1,000.0

0.0
1970 1980 1990 2000 2010
(Census) (Census) (Census) (Census) (Census)

• As you can see from the demographics,

population of Singapore is pretty less.

• Singapore is seen as a tourist destination, hence

there would be more non-citizen travelers visiting.

• Hence, MMT has to use their network of offices

worldwide to capture inbound travelers from all
over the world.
QUESTION 3
• With more than 100 million Filipinos living in
Philippines, there are well About 10% i.e. 10
PHILIPPINES million people living abroad (many were
temporarily moved for work and many settled
abroad permanently)

• From those living overseas 34% people live in USA,

11% in Middle East and 15 % in South East Asian
Countries (Source : CIA Fact book)

• So, we can see a great amount of Non Resident

Filipino Potential for inbound travellers.

• MMT model for India would remain nearly the

same in case of Philippines.
THANK YOU!