Lessons in Marketing Excellence - Client MakeMyTrip
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Transcript of Lessons in Marketing Excellence - Client MakeMyTrip
Al Ameen Sherfuddeen Sandhya Boyapati
Ashwin G
sweetLIME
Bets non air biz at 80% by ’12.
Claims largest bus ticketing inventory
Launched in India
Launches franchise model for expansion
Trends that prevail|Non air revenue streams | bus travel | train travel l ad revenues |
|alternative payment cash cards |
Ties up with Airtel for DTH distribution
Launches bidding website for travel
Introduces chatbots for rail travel bookings
Allows for renting homes on holidays
Launched by Kingfisher, Spicejet & Indigo
Launches Official Hatyachaar marketing campaign
Ties up with Dish TV for DTH distribution
Duniyadekho.com hindi travel portal
Chalbalchal.com enters travel search
Started to target wedding solutions
Travelocity bought out Travelguru
Lost by MMT to the Tatas
Recession shocks of 200826/11 attack
Market ImprovesIncreased ad spends
All in all 2009 wasn’t the best year for OTA’s as they tried their best to get out of the global slump and ventured into newer non air businesses. As we look forward towards 2010 OTA’s would have to move beyond just ticketing sites and look at delivering wholistic value be it planning travel or holidays for its users or even more.
All in all 2009 wasn’t the best year for OTA’s as they tried their best to get out of the global slump and ventured into newer non air businesses. In 2010 OTAs are moving beyond just ticketing sites and are looking at delivering holistic value be it planning travel or holidays for its users or even more.
Communications Content Commerce Search
Communications Content Commerce Search
Increase in share of consumer generated media
Top mobile internet usage stats
Internet penetration under 35 years of age
Skew in the Time Spent on the Web's 4 key activities
2010 segment snapshot40 million internet subscribers20 million broadband198 million debit+credit cards584 million wireless subscribers
77 % of online shoppers use reviews & ratings for purchase decision
86 % of respondents prefer a friend's / user recommendation over a critic's/ experts review
63 % of all WOM is positive
84% of online buyers have bought travel onlineHigh
margin segments
MarketSize
OTA’s increasing influence
MMT can take a bigger share of the growing market by
keeping sight of trends on mobile
internet, consumer behavior, consumer
generated media and usage statistics
Target segments
Opportunity
Internet penetration is growingSearch and social networking is big in mobile internetTarget segment is showing growthMore consumers are moving towards OTAs
BUT, why aren’t OTAs using consumer generated content to grow and differentiate?
OPPORTUNITY SPOT
Preference for buying airline tickets
Consumer Behavior
Top visited sites (million)
Primary researchPrincipal segment buying air tickets – 24 to 35First website they go to – MakeMyTrip.com (96%)What they find missing in OTA’s ?Personalized recommendations/itineraries, real time chatSuggestions based on interests, last mile connectivity,Cheaper fares than supplier websites, Forex/visa agentsPlaces that they go to for accomodation?Hotels.com, tripadvisor, Lonely Planet, Internet search,Company tieups, OTAs for co-ordinatesWhat do you use OTAs for other than airline booking?Holiday packages with pre-fixed budgets, hotels, ratings& reviews, understanding choices for travelOther use of Internet for booking?Movies, Plays, bus tickets, train tickets, concerts, hotels
OTAs are majorly used as research, comparison and information gathering tools by online travellers
It is observed that travellers tend to speak to the hotel desk or travel agent directly for cross-checking offline rates before booking hotels
Promotions, discounts, deals etc. are the clear preferences for online travel bookings
OTA’s serve dual purpose of booking as well as verification
MMT needs to leverage on its lead in market share and the
high brand recall that it has by giving consumer an experience
he/she hasn’t had before as
well as not provided by other OTAs
Price is numero uno in consumer mind
Frame of doubt existing in consumer’s mind if he or she is getting the best deal is pushing consumer to search more
Trust tops the chart in consumer’s mind to make a purchase decision and the consumer builds trust by COMPARISION
How does one combine best price, eliminate doubt and build trust?
That’s the magic formula for CONVERSION
Consumers can book journeys with no service charge
Cars can be rented for self driven or chauffeur drivenEg. Ezeego, Arzoo
9 airlines sell cheap tickets on their own sites
12 Indian travel sites compare cheapest tickets
availability
Single search option provides users with train fares, schedules and availability simultaneously
Registered users can save their searches
Offers like getting one nights stay free while booking for one night
Discounts for consumers staying more than one day on remaining days
exclusive travel concierge, exclusive offers on car rentals e.g. Yatra Barclay Card
Discount offers and cash back in collaboration with the Banks
Online railway bookings is becoming the preferred segment in online travelEmergence of corporate travel packages
Growing Trend for “niche Tourism” Among Young People (rural tourism, medical tourism, sports tourism, gay tourism and wedding tourism)
Rising international travelOTAs looking for offline counters leveraging on their brand value
Emerging travel information portals backed by OTAsOTAs serving as a preferred search tool for checking fares and ticket availability
Hotels are preferring International OTAsGrowth coming primarily from Low cost carriers
Finding low fares Security
Ease of use Booking flexibility
Sorting options Speed of the website
Useful and relevant content Ability to book all travel services in one transaction
Design and presentation of the website OTA trends
Top factors consumers are differentiating OTAs upon
Proposed solution to tackle these factors
OTA Landscape
OTAs are chasing everything to differentiate and woo consumerVery little opportunity on flight prices as they come from common GDS source
OTAs are converging towards offering solutions for all modes of travel, BUT in SILOS
One bad experience, OTA loses the customer forever to a competitor OTA
Solution to stay on TOP?
Deliver a new experience to consumer that exceeds preconceived expectations of consumer and not offered by competitor
S WO T
Internal
External
Posi
tive N
egative
Strength Weakness
Threats
Opportunities
•Marke
t Leader in
OTA share and visit
ation
•High Brand value
•Leader in
innovation of service
(e.g. D
TH)
•Most o
f the LC
Cs are on th
e choice
supplies
•Loyalty
programs with
several le
ading banks
and debit/credit c
ard companies
•Has solutions fo
r all m
odes of tr
avel
•High marke
ting ability (vira
l campaigns)
•Size and ch
oices in
each segment
•Less flexibility in dynamic packaging
•Does not have two way consumer interface
•Choice supplies are not exhaustive and not
locally relevant (e.g. hotels)
•Absence of offline centers for point of sales
•Initiatives are imitable by other OTAs
•Inability to convert the volume of search into sales
•Unable to bridge air and non air travel for customized
solutions
•Competitors are incre
asing fo
cus on non air
travel
•Travelguru su
persedes M
MT on hotel sales
•Airlines g
etting together to
form
independent sites
•Hotels are preferrin
g International OTAs
•Service charges causin
g consumer to
use MMT only
for search
ing the best d
eals
•Competitors are se
tting up more offline centers
•Bad PR can defame brand value e.g. O
kTataByeBye
and Ezeego
•Tour o
perators going online
•Impact o
f Metasearch
•More margins in non air travel
•Leverage on market leader position to capture
increasing trends of online bookings
•Consumer is ready to transact more if trust is
built and assurance is given by peer consumers
•Social networking and mobile internet are
increasing trends that can be tapped
•Positioning as the one stop for dynamic
combination of travel solutions will make
consumers stick
Creating community to drive loyalty Sophisticated Loyalty schemes Improvements in targeting of marketing initiatives By initiating tie up with corporate houses and
providing customized services for travel/hotel bookings
Creating barriers to entry
High
Moderate
Low investments required in
infrastructure
Low switching costs. No Collective bargaining power
High
Price and nonprice competition
Porter’s five forces
HighMany providersSmall and Big
Medium/HighDiscounts
related to volume
ProductEnd to end
consumer driven choices
PriceLowest in the OTA
industry
PlaceOfflineOnline
Mobileheld
PromotionDiscountsBest deals
Convenience
PackagingDynamic
CustomizedIncentives
PropositionValue for money
6P’s – For success
TravelGuru
TravelocityiXigo
ClearTripEzeeGo1
Yatra
MakeMyTrip
MakeMyTrip is perceived as different from the other sites
Perception Map
Now that we know where MakeMyTrip.com is positioned with respect to its competitors, it’s time to go back to the consumer segments to propose our solution
Business Traveler Emergency TravelerEconomic Traveler
BehavioralAttributes
Demo--graphics
Mostly Business class travelerInternational and domestic flier
Advance and last minute bookingLess extensive web search
Preference for premium airlinesTravel duration very important
First class travelerMedium Price sensitivity
Associated with corporate houses
Mostly domestic travelersAdvance booking of tickets
Extensive web searchNo preference for any airline
Less importance to travel duration and time
Economic class travelersHigh price sensitivity
Both holiday trips and business travelsMostly domestic flights
Last minute booking of ticketsMinimal web searchNo airline preference
Travel duration very importantEconomic class travelers
Zero price sensitivity
Internet hours : 2 to 10 hoursAnnual income < 5 lacs
Single/Married/with kidsAge groups less than 30
Low cost airlines
Internet hours : >10 hoursAnnual income >10 lacs
Married/with kidsAge groups more than 30
All kinds of airlines
Internet hours : All rangesAnnual income: All ranges
Mostly singleAge groups less than 30
All kinds of airlines
Recommendations – Economic traveler – (Biggest segment)
Connect the Dots – Merge the divideA holiday from Hyderabad to Sri Lanka value chain (tickets to Sri lanka are cheaper from Chennai)
Current MakeMyTrip
Solution
What the Consumer
does?
Uses data from MMT and goes to parent website to book Chennai – Colombo flight to avoid service charges
Goes to redbus.in or irctc.com to book a bus/train from hyderabad to chennai
Calls DotCabs for a rate of 250 Rs to reach the bus station
Consumer is able to reach Colombo at Rs 4743 Vs Rs 8836 (proposed by MakeMyTrip)
MakeMyTrip loses out on conversion despite providing Air, Bus , Train and Cab solutions
MakeMyTrip positioning of lowest prices and best deals takes a hit in the consumer’s mind
WhatMakeMyTrip should do?
Experience Value for Money
Make the consumer choose Experience Vs Value (Economic traveler identified by Value choice)
Seek start position e.g ISB, GachiBowli
Seek end positionKandy, Sri Lanka
1
23 Integrate travel solutions and build trip schedule in the order of connectivity and cost priority
FlightChennai Colombo
Bus/Train/flight Choice + options
Hyderabad Chennai
Hyderabad bus station/train station/airport depending on previous choice
Cab ProvidersISB, Gachibowli
MMTCaptures
entire value chain
Net Sum Price
Integrating search solutions is a great start to improve conversion and visitation
We have attacked the best price problemHotel bookings will follow suit once consumers
perceive MMT to be churning out the best price and options
Now how do we attack “eliminate doubt” and “build trust”?
Bring in the consumer to the value proposition
MakeMyTrip
AirlineOperators
Hotel Operators Tour
Operators
Consumer?
Two way business model is missingwith the consumer
Consumer is forced to make choices from existing options
Bring the consumer as part of the value chain to promote end to end value based journey booking
The concept is based on location based services driven by user based content influencing other users to take a particular service.
User is incentivized to provide content through the form of discount vouchers or free accommodation stays
Local Transport
Accomodation
Experiences
Source Destination
Fully tapped segment – MMT Airline Online booking transactions
Growing segment – Not fully tapped
Holiday/Air travel value chainOpen Itineraries
For the consumer, By the consumer, To the consumer
Rich media content of places visitedSupplier contacts for transport
New hotel suppliers/Budget accoLocal Experiences
Local transport information
Serviceable (or)Informative
Check InConsumer activates information “check in” to the MakeMytrip system under appropriate category
ValidationMMT validates the entered data and passes/blocks the data entered
Go LiveValidated data goes live. Consumer getS a next trip discount/check in points redeemable against next booking
Drivers for consumer generated ContentMMT mobile solution“Propose” option between any two nodes in the itinerary built by MMTGPSServiceable Vs Informative“Informative” info gets built into MMT itinerary but not charged“Serviceable” info signifies a MMT tie up and hence charged.
Your Journey with MMTCase in point – Source : Chennai Destination : Bangalore Budget Traveller
Best Fares for Flights
User contributed transport choices
User contributed hotel suppliers
User contributed experiences
Travel Value Chain•User books an entire journey, places more credibility on user driven choices and content•MakeMyTrip evolves with receiving data pertaining to each segment as well as servicing choices to each segment•MMT makes money from the supplier side for serviceable data and is able to bridge its offerings with informative data•Over time, MMT evolves to become a social network within an online travel site promoting a community basedoffering•Best contributors are rewarded and consumers over time witness the quality of their journey choices as the data matures•MMT will be able to increase its conversion rate in categories other than airline travel and will be able to give its suppliers a boost by user generated content•With MMT’s foray into railway/bus bookings, they can add offerings for rural tourism, green tourism and rustic experiences
KingfisherKT-732,KT-733
Cab from B block entrance of airport350 rs Koramangala(Informative)
Hotel JanakiBudget650 rs* * (Serviceable)
Trek to Nandi Hills1250 rs(Serviceable)
Small incentives is enough to woo this segment to generate content and source suppliers
• Recency in ratings of hotels/cabs/flights/buses builds credibility and trust• Recency in rich content from users pushes up choice of a certain service and would help in MMT supplier consolidation
Internal External
Fixed
Brand VisionBrand to become the leading choice for “journey” between any 2co-ordinates
Brand PromiseCommitement to customers – A price you can’t beat, An experience you can’t forget
Variable
Brand DeliveryWill fulfil commitmentby integrating travel solutions and populating user generated content for suppliers and information regarding local experiences
Brand PositioningWe want to be perceived as a choice brand for anything, anywhere related to travel, experiences and holidays. Our competitive advantage will be pricing, choices, value and community
Drivers
1
2
34
5
Emotional Connection
Value
AccesibilityAwareness
Relevant Differentiation
Brand to connect with consumer who seek the best in value or in experiences and achieving the same through the same people who seek
Convenience, Multitude of choices, user generated information that wont be charged and ensuring every traveler gets the bang for the buck
Increasing offline outlets to bring in person interaction to the consumer thereby contributing to increased trust and relationship over the years
Approach will primarily be in the online space to tap in the consumer behavior of search ,social networking and gaming. Viral campaigns on the lines of “beat this journey at a lower price” and treasure hunt will keep consumers perceiving MMT as different from other OTAs
User interface, choice matrix,Information drivers, travel community, rich media content,Sophisticated loyalty schemes
This brand positioning will keep MMT well poised to be the one stop for all travel related solutions and ride the wave of this growing OTA segment while leveraging all its existing strengths and customer aquisitions
Possible value ad mechanisms
CarpoolingPassengers booking a
flight/hotel can be given an option to opt for a
carpool
• Booking facilitated by MMT
• Connection between passengers travelling
and reaching around the same time facilitated by
MMT• Value add will drive up
cab bookings and full journey bookings
Group booking discounts
Passengers can opt for being part of a pool for availing group discounts
on hotel bookings. Thereby people who book on MMT for the same day/hotel can
avail appropriate discounts as being part
of a group.
Will help in conversion from mere searches to
actual bookings
Brand your experienceConsumers are
motivated to contribute when personal branding
is activated.
Any new experiences that MakeMyTrip can
service and is contributed by a user will be branded with a
name according to consumer’s choice
before it goes up for bookings.
MMT can drive content and non travel sales in
this segment
Sample Marketing campaigns
Have you found a cheaper way than us to connect two places?
Let us know and get your trip FREE*
We shall take your WORD for it
Do you have anexperience that we
don’t offer?
Be the first and accumulate
200 Rs for your nextMMT booking
Exhausted searching for the best deal?Log on to MakeMyTrip.com & Rejuvenate!
Don’t miss
Enjoy the best of rustic experiencesRecommendedby your fellow travelers
Booking your holiday just got easierYour child can handle it
References 1. comSCORE data passport report H1 ‘10 and H2 ’102. Euromonitor International : Country Market Insight - June 2010 – Travel and Tourism – India3. EBSCO report on MakeMyTrip VIKALPA • VOLUME 35 • NO 1 • JANUARY - MARCH 20104. comSCORE Online Travel Trends In India Travel Distribution Summit – India 2010 5. A perceptual mapping of online travel agencies and preference attributes - Dong Jin Kima, Woo Gon Kima, Jin Soo Hanb6. Responsible tourism management: The missing link between business owners’ attitudes and behaviour in the Cape Town tourism industry Nicole Frey, Richard George* School of Management Studies, University of Cape Town (UCT), Rondebosch, Cape Town 7701, South Africa7. PWC : Hospitality Directions Europe Edition*Issue 14 November 2006: How to maintain success in the online travel space8. ResearchOnIndia : Online Travel Industry : August 2010 : 3 parts9. A Case Study on MakeMyTrip Mobile Travel Solution & breaking the Mcommerce Inertia10. Tripping along:Deep Kalra (PGP '92),makemytrip.com11. Travel 2.0:The future of travelling:Whitepaper12. LiveMint:Future course of Marketing and Advertising13. Sachin Bhatia on Social Networks: Vertical Social Networks, the future of online travel distribution 14. WebCredible:Online travel sector usability report15. Marketing Research in Online Travel Agency Space Faculty Contributor : N. B. Kanagal,Associate Professor,IIM B16. Rockey Nebhwani , 2009, "Indian Railways - Epicenter of Indian Online Travel Industry Revolution", February 2, http://www.infosysblogs.com/multi-channel-retailing/2009/02/indian_railways_epicenter_of_i.html. 17. IANS, 2009, "Indians Prefer Online Travel Portals to Plan Holidays", Aug 29, http://tech2.in.com/india/news/internet/indians-prefer-online-travel-portals-to-plan-holidays/85072/0.18. Marion Arathoon and P.R.Sanjai, 2008, "Online travel portals most prone to fraud", Jun 11, http://www.livemint.com/2008/06/10235627/Online-travel-portals-most-pro.html.