A REPORT ON TATOI- MARKETING STRATEGY

ABSTRACT
The tourist agency TOURS AND TRAVELS OF INDIA want to know about marketing mix which contains product, price, place and promotion and extended marketing mix for tourism industry and the board of directors of the company want to know about the promotional strategy for the company. They want to know about marketing mix for two different segments based on income are middle class and upper middle class and different promotional and pricing strategies involved. The report deals with all these elements and suggests that they should go with competitive pricing strategy.

INTRODUCTION
TOURS AND TRAVELS OF INDIA is the tourist agency in northern India. It is following currently marketing orientation. The company recently expanded its market to Andhra Pradesh in southern India. The boards of directors are in a dilemma about marketing mix because as it becomes a major tool in marketing a business. There is a need to revalidate the perceptions of the present marketing by using marketing mix.

OBJECTIVES
To develop the product for sustainable competitive advantage. To identify the marketing mix in tourism industry. To explain marketing mix for two segments chosen by TOURS AND TRAVELS OF INDIA

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.

THEORETICAL FRAMEWORK
MARKETING-MIX
Marketing mix is the common term used in marketing. It consists of four Ps of marketing they are product, price, place, promotion. The importance of marketing mix is to make decisions about 4 Ps and satisfy the customer needs. These four Ps can control the external and internal constraints of environment of marketing.

product

place

Marketing mix
promoti on

price

Figure 1 Marketing Mix It is the combination of the elements of marketing and what roles each element plays in promoting your products and services and delivering those products and services to your customers (Randy duermyer).

PRODUCT
Anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a need and want (principles of marketing, Philip kotler 2011).

ACCOMMODATION

RECREATIO N

ATTRACTION

TOURISM PRODUCT

RESTAURAN T

TRANSPORTATION

SHOPPING

Figure 1 Product Mix

So we can understand that product is simply any kind of offering by the company to serve and satisfy needs and wants of the customer. A service is a type of product which is intangible one. Tourism is a service oriented industry, since tourism is a multi segmented industry it is difficult to state for product mix. It consists of components like accommodation, attraction, transportation, recreation, shopping. These are interlinked with each other.

DEVELOPMENT OF PRODUCTS TO SUSTAIN COMPETITIVE ADVANTAGE: A firm can gain competitive advantage if it is able to create value for its buyers.(porter, 1987) As tourism industry has large product mix, the tourist company should develop in such a way that the product should satisfy the customer and there is a strong competitive advantage because of large number of competitors in tourism industry. The products in a tourism are interlinked many companies in the market are offering products like whole package for a tour it reduces some extra cost of service. Self directed employees and innovative service technology, innovative self technology and building relations with customers and partners in reaching destinations create competitive advantage.

PRICE
The amount of money for a product or service (principles of marketing, Philip kotler 2011). It can also be explained as the total values exchanged by the customer for using the product or service. The only element in marketing mix which gives revenue is price. 1. VALUE BASED PRICING: The company sets price based on values of the customers instead of cost required to produce the product by sellers. Ex: Make My Trip is one of the online travel companies which follow value based pricing it offers best prices for the customers. (www. makemytip.com) 2. COST BASED PRICING: The Company sets price based on production and distribution cost at a fair rate. Since India is a developing country pricing strategies are important for promotional activities this includes trade discounts and seasonal discounts. The pricing of the product should be affordable by the customers.

PLACE
The meaning and purpose of place is different distribution channels involved in reaching the product or service to the customer. People generally prefer tourism in leisure time leisure facilities like near towns and cities. Service agents are very useful in tourism industry to meet the customer requirements directly. Tourist marketers would find the potential place. There exist a number of intermediaries in the marketing channel of tourism. Service sector is intangible it prevents intermediaries to prevent taking ownership of goods. Transport also plays a major role in tourism industry it helps the people to reach the tourist place.

PROMOTION
This consists of tools that helps to communicate with customer and helps to build customer relationship management. It consists of the following.

1. ADVERTISEMENTS: These are any paid form of presentation or promotion of services to the
customers with the help of external sponsor. Advertisements may be on print media or digital media.

2. SALES PROMOTION: There are some techniques to promote sales in short term period and
the marketers are needed to use them. The tools of sales promotions are designed in minding the customers who are particularly price-sensitive. Eg. A travel company offers give some gifts to their clients, such as wallets for tickets, flight bags. The hotels offer facilities like TV, first aid sewing kits and WIFI.

3. PERSONAL SELLING: In this a person of a company goes to customer individually and

promotes his company for making sales and build customer relations. Practically this type of selling is possible only in niche marketing goods and services.

4. WORD OF MOUTH: In tourism industry word of mouth sales are hidden forces to promote
sales. This states that tourist companies should concentrate on quality of the service By using ads in TVs, news papers for example Raja Rani Pvt. Ltd. Promotes their products, they follow mass promotional strategies like organizing road shows. Due to the quality of the services they are offering they get word of mouth promotion.

EXTENDED MARKETING MIX

Marketing mix is extended to another 3ps to understand about customer well, today marketing is customer oriented one there are another 3ps are required. 1. PEOPLE: In service it is a defining factor, because service is linked with people. It includes people who promote, sell and people who deliver services. Customer satisfaction is important for people who deliver services, while the people who sell must have professional excellence. 2. PROCESS: It involves how the service is delivered to customers from beginning to ending. Designing the customer service process, delivering the service in time and following the systematic procedure management of service quality. 3. PHYSICAL EVIDENCE: The environment in which the services are delivered and where the firm and customer interact and any tangible commodities that facilitate performance communication of the services (Zeithaml & Bitner) Since tourism is an intangible service tangible elements are offered for physical evidence. It consists of elements like facilities which give comfort to customers, ambiences, physical environment and social settings. Tourism attractions are experience these are given a tangible effect by using comforts like transportation, ambience for the customers.

PLANNING MARKETING MIX FOR DIFFERENT SEGMENTS

After studying different segments in tourism industry two segments are identified for TOURS AND TRAVELS OF INDIA based on income one is middle class and the other one is upper middle class.

MARKETING MIX FOR MIDDLE CLASS

1. PRODUCT: The products offered for this segment by TOURS AND TRAVELS OF INDIA is transportation, attraction, and restaurant. Facilities like recreation and shopping are not offered. 2. PRICE: India is a developing country middle class income families are more. So price should be affordable for them it starts as low as 3,500 Rs per person for national tours and varying for different tourist places. Here value based pricing is to be followed. 3. PLACE: Travelling agents and tourist guides are the main channels for the company. They work at a boutique where the population is generally high. 4. PROMOTION: Mass promotional strategies like advertisements in televisions, newspapers are used.

MARKETING MIX FOR UPPER MIDDLE CLASS

1. PRODUCT: The products offered for this segment by TOURS AND TRAVELS OF INDIA is transportation, attraction, and restaurant, recreation and shopping all services are offered to them in different packages. 2. PRICE: Price starts from 10,000 Rs per person for national tours and varying for different tourist places. Here cost based pricing is to be followed. 3. PLACE: Travelling agents and tourist guides are the main channels for the company. They work at boutiques where the population is generally high. 4. PROMOTION: Individual promotional strategies are used by using travel agents. They promote directly the service of company to the customer.

FINDINGS AND SUGGESTIONS

Competitive advantage is important for occupying more market share. For service sector physical evidence is possible in indirect way. Price and promotion are important factors to attract customers towards the product.

CONCLUSION
Marketing mix is the determining factor after segmentation of the industry. It has been identified that for marketing a service a brief study about marketing mix is must to achieve success in industry.