Team: Wings of FireMDI, Gurgaon

Ayan Dasgupta Siddhi SarafKamalika Poddar

Tata WINGER DICOR – Expansion as a Passenger Vehicle in the Indian Travel and Tourism sector

Overview

Recommendation

Background

Objective

TATA Winger DICOR’s expansion strategy as a passenger vehicle in the Indian Tours and Travel (T&T) industry

The Tata Winger is a van launched by Tata Motors in 2007. International in looks, this 9-13 seater passenger vehicle is established firmly in School as well as ambulance segment, with a considerable presence in staff segment also. However, its usage as a tourist vehicle as well as for hotel transfers still lags behind the industry usage standards.

• Leveraging WINGER in the growing T&T segment.• Developing an integrated marketing plan TATA Winger DICOR to address the T&T

segment in the country

Executive Summary Situation Analysis Recommendations Annexure

State Chosen: Tamil NaduBrand Positioning: Very spacious MUV which provides the exact requirements for family trips related to heritage, wellness, pilgrimageCommunication Strategy:Enterprise – Representatives, Trade Fairs, Digital, Partnership and SynergyEnd Users – Advertising, Promotions, Public Relations, Interactive Marketing, Word of MouthSynergy with T&T sub-segments:Hotels Restaurants: Pool service for staff, grocery cargo; Souvenir Shops: Listing; Travel Agents: Commission; Individual Chauffeurs: Employment

Research Methodology

Executive Summary

Approach

Qualitative • Discussion with Marketing and Strategy Professors at MDI Gurgaon• Secondary Research from internet – IBEF, CRISIL, Statista, Forrester, KearneyQuantitative• Market Sizing Guesstimates• Primary Research through questionnaire

Team: Wings of Fire

Focus on Tamil Nadu since it offers a wide variety of tourist options, as well as has been continuously rated as the top tourist location in various research articles.Those types of tourisms targeted where short to medium distance travel are required such as heritage, religious, health and wellness and sports and film tourism.

Executive Summary Situation Analysis Recommendations Annexure

Overview – Indian Tours and Travel Sector and Vans in T&T

Tourism in India Accounts for 7.5% of India’s GDPDirect contribution to GDP is in 2016 was USD 47 billion

Travel and Tourism in India Forecast to increase by 4.97% p.a. to USD 280 billion by 2025Total contribution to GDP is in 2016 was USD 136 billion

Foreign Tourist Arrivals (FTAs) in India Increased 12% y-o-y to 9 million in 2016Policies like e-visas and Visa on Arrival (VoA) to increase FTAs

Vans in T&T in India

Factors Affecting T&T segment for Vans

Cost of Operations

State Regulationsand Permit

Issues

Seasonality of the Tourist

DestinationTata Winger’s Revenue Streams

Competition Scenario

Growth Drivers Growing Demand• Domestic

consumers• Leisure and

upcoming segments

Foreign Direct InvestmentCumulative FDI inflows of USD 12.7 billion in FY16 and FY17• 100% FDI in automatic

route• 100% FDI in tourism

construction projectsPolicy Support• Incredible India and Atithi

Devo Bhava campaigns• HRIDAY and Project Mausam

initiatives

Infrastructure• Development of

destinations, circuits, mega projects

• Rural tourism projects

• Hospitality majors entering into tie-ups

10,000

Volume in units

60%

AC Fleet 10% CAGR Tempo Traveller

Team: Wings of Fire

SchoolStaff

AmbulanceCargo

TourismHotel Transfer

34%13%

25%8%

13%7%

Executive Summary Situation Analysis Recommendations Annexure

Types of Tourism in India and Major Tourist Spots

Types of Tourism

Business TourismUndertaken for work

Adventure TourismPhysically challenging outdoor activities

Medical TourismTravel for receiving medical care

Rural TourismTravel for experiencing rural lifestyle

Wellness TourismTravel for promoting health and well-being

Sustainable TourismFor low impact on environment and

creating local employment

Sports TourismTravel for participating in

or observing a sports event

Film TourismTravel for visiting places popular because of films

Heritage TourismTravel to places of

historical or cultural interest

Religious TourismTravel for pilgrimage, missionary purposes

HeritageReligious

Health/Spiritual

Eco/SustainableLeisure

Adventure

Team: Wings of Fire

Executive Summary Situation Analysis Recommendations Annexure

Consumer Behavior in Indian T&T

Rural households make more trips than urban householdsRural household: 4.4 trips per yearUrban household: 3.7 trips per yearSocial Trips contribute 74% of the total tripsReligious Trips: 10%Medical Trips: 6%Business Trips: 2.5%Leisure Trips: 2.5%Others: 5% Types of Domestic Trips:Intra State: 90%Inter State: 10%

Madhya Pradesh

Rajasthan

Delhi

Tamil Nadu

Uttar Pradesh

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16

6.90%

7.50%

8.00%

8.30%

14.10%

Top 5 states for Social Trips

Kerala

Andhra Pradesh

Delhi/NCR

Maharashtra

Tamil Nadu

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18

5.00%

8.50%

11.20%

13.00%

17.00%

Top 5 states for Medical Trips

Uttar Prdaesh

Rajasthan

Uttarakhand

Tamil Nadu

Andhra Pradesh

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14

8.50%

11.00%

12.90%

12.90%

13.30%

Top 5 states for Religious Trips

Top Indian States for T&T Tamil Nadu

Medical Tourism

Heritage Tourism

Religious Tourism

Sustainable Tourism

Sports and Film Tourism

• Thanjavur• Mahabalipuram• Nilgiri Mtn. Rly.

• Chidambaram• Rameswaram• Erawadi

• CMC at Vellore• Kolli Hills

• Vedantangal Bird Sanctuary

• Botanical Garden

• JLN Stadium during ISL

• Chidambaram Stadium for IPL

• Chennai Film City

Team: Wings of Fire

Executive Summary Situation Analysis Recommendations Annexure

Team: Wings of FireT&T Transportation in Tamil Nadu

STP of Tourist Profile in Tamil Nadu Segmentation: Income; AgeTarget: Income – Middle, High-middle; Age – 35 years and abovePositioning: Very spacious MUV which provides the exact requirements for a family trip or similar applicationsMost Significant Tourism Types for the Use of Tata Winger DICORHeritage Tourism – Baby Boomers, Gen X, MillennialsReligious Tourism – Baby Boomers, Gen X, TraditionalistsMedical Tourism – Baby Boomers, Gen XWellness Tourism – Baby Boomers, Gen XSustainable Tourism – Baby Boomers, Gen X, MillennialsSports/Film Tourism – Millennials, Centennials

Present Modes of Transport Scenic Tourism – Individual Chaffeur ServicesFrequent: Coimbatore, Kanyakumari, KodaikannalLess Frequent: Coonoor, Point Calimere, TuticorinHeritage Tourism – Chartered Bus ServicesFrequent: Chennai, MamallapuramLess Frequent: Gingee, Poompahar, VelloreReligious Tourism – Government Bus ServicesFrequent: Thanjavur, Tiruchirapalli, RameshwaramLess Frequent: Madurai, Palani, Kancheepuram

Recommendations• Target Gen X and Baby Boomers as passengers,

but also reach out to the millennials• Regions to target would be the less saturated

markets

Present Modes of Transport Religious Tourism – Individual Chaffeur ServicesFrequent: Chennai, OotyLess Frequent: YercaudMedical and Wellness Tourism - Chartered Bus ServicesFrequent: Vellore, Coimbatore, PondicherryLess Frequent: Kutralam, Kolli HillsSports and Film Tourism - Chartered Bus ServicesFrequent: ChennaiLess Frequent: Erode, Tirunelvelli, Rajapalliam

Challenges

Competitions

Infrastructure

Customer Acquisition

Payment Collection

Labor Acquisition

Natural Disasters

Government

Note – Traditionalists: Born before 1945 | Baby Boomers: Between 1946-1965 | Generation X: Between 1966-1981 | Millennials: Between 1982-1996 | Centennials: After 1996

Executive Summary Situation Analysis Recommendations Annexure

Team: Wings of FireCommunication and Integration Strategies

Communication to Partners

Communication to End Users

Representatives

Leveraging Digital Platforms

Outbound and Inbound Marketing

Offer PartnershipsAnd Synergy

Trade Fairs

Advertising Public RelationsPromotions

Word of MouthInteractive Marketing

Integration into the Value Chain

Hotels and Restaurants• Inbound Logistics – Using Ace and

Xeon for grocery deliveries• Outbound Logistics – Pickup and

Drops by a Winger• Firm Infrastructure – Fleet of vans• Human Resource – Drivers,

Guides• Technology Development – Van

tracking system, online booking for clients

Travel Agents and Chauffeurs• Firm Infrastructure – Small

number of vehicles to service customized travel packages of small groups of clients

• Technology Development – Integration with T&T apps to book a Winger to take the customers to specific tourist locations. In vehicle apps to suggest destinations.

Executive Summary Situation Analysis Recommendations Annexure

Synergies and App

Hotels and RestaurantsTie-ups with hotels – tap their boardersSynergize by providing them:• Freight services for groceries delivery through

vehicles like Ace and Xeon• Pooled pick up and drop off of their staff• Commission for booking boarders to travel by

Winger• Suggest partner restaurants to passengers on

the AppSouvenir Shops• Suggest partner souvenir shops to passengers on

the App• Commission for booking shoppers to travel by

WingerIndividual Chauffeurs• Employ them with a mix of fixed and variable

remuneration

Travel Agents• Tie-up and offer commission for bookings

generated – MMT, GoIbibo, ClearTrip, IRCTC

Inter-State Bus Depots• Provide pick-up/drop-off services to bus depots

run by governments (TNSTC, SETC) or private travel agents

Reservations

Restaurants

Souvenirs

Tourist Spots

Reviews

Translator

Team: Wings of Fire

The Tata Winger Tourist Travel

App

Executive Summary Situation Analysis Recommendations Annexure

Team: Wings of FireTimeline and Financials

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

R1: Tie up with Hotels and Restaurants

Launch the Winger App

R2: Tie up with Souvenir Shops

R5: Data Analytics partnership with premium hotels

R6: If R5 causes growth > 10% extend to sub-premium hotels

R4: If R1, R2 cause growth > 15%, scale up

Jan

R3: Monitor Growth

R10: Promotional events and contests at malls during Valentines Day, Regional New Year Days, Rakshabandhan, Dussehra, Diwali, Christmas

R7: Employ individual chauffeurs R8: Monitor R7 R9: If R7 leads to 10% revenue increase, expand

Plan of Action - 2017

2016 % Growth Current Contribution

2020 Projections

Passenger Vehicles 127118 13.34% 100.00% 209771

Cars 106,827 10.97% 84.04% 162013

Utility Vehicles/Vans 20,291 23.86% 15.96% 47758

Export 4,006 13.60% 3.15% 5873

Growth projections for 2020 with estimated 6.3% market share in PV sector with a 24% growth of vans and utility vehicles

Currently PV contributes to just 0.58% of the gross revenue. With increased presence of winger we expect the contribution of winger alone to the revenue to become 0.99% by 2020Sector Number Share Revenue (in lakh Rs.)

Hotels 56638 27% 445989Travel Agents 39856 19% 318907

Individual Drivers 23075 11% 169843Govt. Services 62931 30% 962364690

Commercial Tourist Parks 27270 13% 213583

Total 209771 100% 96,35,13,014

Contribution to Revenue 12.57%

Team: Wings of FireAnnexure

Executive Summary Situation Analysis Recommendations Annexure

Team: Wings of FireAnnexure

Executive Summary Situation Analysis Recommendations Annexure

Team: Wings of FireAnnexure

Executive Summary Situation Analysis Recommendations Annexure

Tourist footfall for various regions in Tamil NaduIn 2014

Thank You