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RAYAT SHIKSHAN SANSTHAS

KARMAVEER BHAURAO PATIL COLLEGE, VASHI.

A

PROJECT REPORT ON

MARKETING STRATEGIES OF MAKE MY TRIP.COM

SUBMITTED BY,

SUMIT KAMBLE

(231)

SUBMITTED TO

PROF. ARCHANA SALUNKHE

DATE : 08-02-2012



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INDEX

SR NO. CONTENTS PG NO.

CHAPTER 1 INTRODUCTION TO THE STUDY

1.1 OBJECTIVE

1.2 RESEARCH METHODLOGY

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4

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CHAPTER 2 PROFILE OF THE ORGANISATION 13

CHAPTER3

CONCEPTUAL FRAMEWORK1.1M ARKETING STRATEGY (4P¶S)

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CHAPTER 4 DATA ANALYSIS AND INTERPETATI

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CHAPTER 5 CONCLUSION 40



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CHAPTER 1

INTRODUCTION TO THE STUDY

In this prospectus, we refer to information regarding the travelservice industry and our competitors from marketresearch reports, analyst reports and other publicly availablesources. Makemytrip.com is one of the best leading online portaland it is a profitable organization. It is one of the major playersin India. After a hugely successful 2006, where makemytrip.com established its leadership position in India they are nowembarking on an ambitious growth plan for 2010-11. From being the number one online travel company Makemy trip.comnow aims to become the largest travel company in India bothoffline and online.We have designed our websites to provide our customers with auser-friendly experience. According tocomScore, www.makemytrip.com was the second most visitedtravel website in India (after the Indian Railways¶ website) in

each of the years from 2007 to 2009 and had an average of over 1.7 million unique visitors per month in 2009. In fiscal year 2010, 2.0 million transactions executed through our websitesaccounted for approximately 94.5% of our total transactions. Wehave built an advanced and secure technology platform, whichintegrates our sales, customer service and fulfillment operations.Our technology platform is scalable and can be upgraded to

handle increased traffic and complexity of products with limitedadditional investment.



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1.1 OBJECTIVE

y To be the market leader and to sustain in this sector.

y To increase the market share as the tourism market is increasingin India.

y Its aim is to be the world leader in the tourism industry.

y To provide the consumer every detail and the every informationrequired about the destination and do all their booking sitting at

home while using online portal.



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1.2 RESEARCH METHODLOGY

The system of collecting data for research projects is known as research

methodology. The data may be collected for either theoretical or practical

research for example management research may be strategically conceptualized

along with operational planning methods and change management.

Data collection:

Data collection depends on the research design (quantitative or qualitative

design). Tutors India helps in a survey tool validation and also online and face to

face data collection process. They help to conduct surveys [in person Interviews:

Formal to informal; structured to unstructured; focus group discussion,

observations, self-administered questionnaire, diaries, citizen report cards, Delphi

techniques, expert judgments, online surveys, secondary sources such as journals,

newspaper articles, annual reports, government sources such as census, budgets,

policies, procedures, etc.

Quantitative consulting Benefits:

The preparation of a successful dissertation involves conducting effective

research, analyzing data and results presentation all which require a high level of

statistical expertise. We at tutorsindia provide solution from formulating

methodology to the results presentation. You can approach stats work with any

or all of the following steps:

Framing your Research Methodology

Study design

Sample size calculation and justification

Development of questionnaire



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Statistical techniques

DATA REQUIRED

Primary Data:

Data that has been collected from first-hand-experience is known as primary data.

Primary data has not been published yet and is more reliable, authentic and

objective. Primary data has not been changed or altered by human beings;

therefore its validity is greater than secondary data.

Secondary Data:

Data collected from a source that has already been published in any form is called

as secondary data. The review of literature in nay research is based on secondary

data. Mostly from books, journals and periodicals.

DATA SOURCES

Sources of Primary Data:

Sources for primary data are limited and at times it becomes difficult to obtain

data from primary source because of either scarcity of population or lack of

cooperation. Regardless of any difficulty one can face in collecting primary data; it

is the most authentic and reliable data source. Following are some of the sources

of primary data.

Experiments:

Experiments require an artificial or natural setting in which to perform logical

study to collect data. Experiments are more suitable for medicine, psychological



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studies, nutrition and for other scientific studies. In experiments the experimenter

has to keep control over the influence of any extraneous variable on the results.

Survey:

Survey is most commonly used method in social sciences, management,

marketing and psychology to some extent. Surveys can be conducted in different

methods.

Questionnaire:

is the most commonly used method in survey. Questionnaires are a list of

questions open-ended or close -ended for which the respondent give answers.

Questionnaire can be conducted via telephone, mail, live in a public area, or in an

institute, through electronic mail or through fax and other methods.

Interview:

Interview is a face-to-face conversation with the respondent. In interview the

main problem arises when the respondent deliberately hides information

otherwise it is an in depth source of information. The interviewer can not only

record the statements the interviewee speaks but he can observe the body

language, expressions and other reactions to the questions too. This enables the

interviewer to draw conclusions easily.

Observations:

Observation can be done while letting the observing person know that he is being

observed or without letting him know. Observations can also be made in natural

settings as well as in artificially created environment.

Secondary Data:



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Data collected from a source that has already been published in any form is called

as secondary data. The review of literature in nay research is based on secondary

data. Mostly from books, journals and periodicals.

Sources of Secondary Data:

Secondary data is often readily available. After the expense of electronic media

and internet the availability of secondary data has become much easier.

Published Printed Sources:

There are varieties of published printed sources. Their credibility depends on

many factors. For example, on the writer, publishing company and time and date

when published. New sources are preferred and old sources should be avoided as

new technology and researches bring new facts into light.

Books:

Books are available today on any topic that you want to research. The use of

books starts before even you have selected the topic. After selection of topics

books provide insight on how much work has already been done on the same

topic and you can prepare your literature review. Books are secondary source but

most authentic one in secondary sources.

Journals/periodicals:

Journals and periodicals are becoming more important as far as data collection is

concerned. The reason is that journals provide up-to-date information which at

times books cannot and secondly, journals can give information on the very



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specific topic on which you are researching rather talking about more general

topics.

Magazines/Newspapers:

Magazines are also effective but not very reliable. Newspaper on the other hand

is more reliable and in some cases the information can only be obtained from

newspapers as in the case of some political studies.

Published Electronic Sources:

As internet is becoming more advance, fast and reachable to the masses; it has

been seen that much information that is not available in printed form is available

on internet. In the past the credibility of internet was questionable but today it is

not. The reason is that in the past journals and books were seldom published on

internet but today almost every journal and book is available online. Some are

free and for others you have to pay the price.

E-journals:

E-journals are more commonly available than printed journals. Latest journals are

difficult to retrieve without subscription but if your university has an e-library you

can view any journal, print it and those that are not available you can make an

order for them.

General websites;

Generally websites do not contain very reliable information so their content

should be checked for the reliability before quoting from them.

Weblogs:

Weblogs are also becoming common. They are actually diaries written by

different people. These diaries are as reliable to use as personal written diaries.



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Unpublished Personal Records:

Some unpublished data may also be useful in some cases.

Diaries:

Diaries are personal records and are rarely available but if you are conducting a

descriptive research then they might be very useful. The Anne Franks diary is the

most famous example of this. That diary contained the most accurate records of

Nazi wars.

Letters:

Letters like diaries are also a rich source but should be checked for their reliability

before using them.

Government Records:

Government records are very important for marketing, management, humanities

and social science research.

Census Data/population statistics:

Health records, Educational institutes records

Public Sector Records:

NGO's survey data, Other private companies records



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F) Research methods

Types of research

Experiments:

People who take part in research involving experiments might be asked to

complete various tests to measure their cognitive abilities (e.g. word recall,

attention, concentration, reasoning ability etc.) usually verbally, on paper or by

computer. The results of different groups are then compared. Participants should

not be anxious about performing well but simply do their best. The aim of these

tests is not to judge people or measure so-called intelligence, but to look for links

between performance and other factors. If computers are used, this has to be

done in such a way that no previous knowledge of computers is necessary. So

people should not be put off by this either.

Surveys:

Surveys involve collecting information, usually from fairly large groups of people,

by means of questionnaires but other techniques such as interviews or

telephoning may also be used. There are different types of survey. The most

straightforward type (the one shot survey) is administered to a sample of

people at a set point in time. Another type is the before and after survey which

people complete before a major event or experience and then again afterwards.

Questionnaires:

Questionnaires are a good way to obtain information from a large number of

people and/or people who may not have the time to attend an interview or take

part in experiments. They enable people to take their time, think about it and

come back to the questionnaire later. Participants can state their views or feelings

privately without worrying about the possible reaction of the researcher.



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Unfortunately, some people may still be inclined to try to give socially acceptable

answers. People should be encouraged to answer the questions as honestly as

possible so as to avoid the researchers drawing false conclusions from their study.

Interviews:

Interviews are usually carried out in person i.e. face-to-face but can also be

administered by telephone or using more advance computer technology such as

Skype. Sometimes they are held in the interviewees home, sometimes at a more

neutral place. It is important for interviewees to decide whether they are

comfortable about inviting the researcher into their home and whether they have

a room or area where they can speak freely without disturbing other members of

the household.

Studies using the Delphi method:

The Delphi method was developed in the United States in the 1950s and 1960s in

the military domain. It has been considered particularly useful in helping

researchers determine the range of opinions which exist on a particular subject, in

investigating issues of policy or clinical relevance and in trying to come to a

consensus on controversial issues. The objectives can be roughly divided into

those which aim to measure diversity and those which aim to reach consensus.



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CHAPTER 2 :

PROFILE OF THE ORGANISATION

` Make MyTrip.com, India¶s leading online travel company wasfounded in the year 2000 by Mr. Deep Kalra.

` Largest e-commerce company in its year of launch 2000.

` Customer base of two million customers and 50% market share

till 2009.` Offices in 20 Cities In India

` In India it came in the year 2005.

` International offices in New-York, Sydney, San Francisco

` 24 x 7 customer support.

` In 2007 makemytrip.com won the award of ³best online travelagency in India´ from Galileo Express travel world.



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Corporate Inf ormation

It is a public limited company by shares incorporated inMauritius. It was incorporated asInternational Web Travel Private Limited, a private companylimited by shares, on April 28, 2000 andsubsequently changed the name to MakeMyTrip Limited and

converted to a public company. registeredoffice is located at the offices of Multiconsult Limited at RogersHouse, 5 President John Kennedy Street, PortLouis, Mauritius. principal executive offices are located at 103Udyog Vihar, Phase 1, Gurgaon, Haryana122016, India. Our principal website addressis www.makemytrip.com.



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Corporate Structure



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MARKET SURVEY

Travel and Tourism Industry in India

The Indian travel and tourism industry is large and growingrapidly. According to the WTTC, India¶s travel andtourism industry contributed Rs. 1,741.2 billion to India¶s GDPin 2009 and is expected to contributeRs. 1,970.1 billion to India¶s GDP in 2010. India is one of thefastest growing countries in the world in terms of itstravel and tourism industry. The Indian travel and tourismindustry is expected to grow at an annual rate of 7.8% over the next 10 years. Further, the WTTC expects that, as a result of the strong growth rate in the Indian travel andtourism industry, over the next 10 years, India will become oneof the top 10 travel and tourism markets in the worldin terms of the absolute size of its market.



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The Government of India has also recognized the importance of the travel and tourism industry and has over the past several years enacted or announced several initiatives to

give further impetus to the industry:

The ³Incredible India´ campaign helps showcase India as aleading tourist destination globally; The provision of one-month tourist visas on arrival for citizensof five countries (i.e., Japan, Finland, New Zealand, Singaporeand Luxembourg); An expenditure budget of Rs. 11.2 billion allocated to the

Ministry of Tourism in the 2010 Indian governmentBudget (a 9.7% increase over the previous year) of which about

Rs. 4.7 billion has been earmarked for building new infrastructure facilities such as tourist receptioncenters and refurbishing monuments; Support of an ³open-skies´ policy in India; Upgrade of existing or construction of new airports in major

cities, including Mumbai, Delhi, Chennai Hyderabad andBangalore; The construction of international convention centers in citiesincluding Delhi, Mumbai, Goa, Jodhpur, Udaipur,Cochi, Agra and Jaipur to attract more business travelers toIndia; and Air transportation policies permitting airlines in India whichhave been in operation on domestic routes for over five years to fly on international routes



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Overview of the Indian Online Travel Industry

Growth of the Indian Online Travel Industry

According to PhoCusWright, the Indian online travel marketgrew 11% to reach $3.4 billion in 2009. Netscribeshas cited sources stating that, in 2009, approximately 34% of air tickets and 14% of train tickets booked in India weresold online. Many travelers also utilize online travel agencywebsites for travel-related research and information.

Key Drivers of Growth

We believe that the online travel industry in India is under- penetrated and will continue to grow faster than theoverall Indian travel industry, primarily because of the followingdrivers of growth:

Increasing Internet Penetration. According to Internet WorldStats, in 2009, Internet penetration was at only

7.0% in India, as compared to over 74.1% in the United States.We therefore believe that the Indian online travelindustry is well-positioned for long-term growth. IncreasedInternet usage as well as the growing breadth of travel products offered online are expected to drive this growth. Thereis significant potential to serve small and medium businesses through websites rather than traditional corporatetravel agencies. In addition, the Forrester July Reportestimates that India will have the third largest number of Internetusers in the world by 2013, after China and theUnited States. The Forrester April Report expects the Internet penetration in India and other emerging markets such



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as China and Indonesia to grow annually at an average rate of 10% to 20% over the next five years.

Growth in Low-Cost Airlines.

We believe that increasingcompetition in the Indian airline industry and theemergence of more airlines, particularly low-cost airlines, hasspurred more and more travelers to choose air travelover the traditional rail travel due to affordability andconvenience. With the increase in low-cost airlines, online air travel bookings have also increased. We believe this is in partdue to the fact that low-cost airlines typically prefer to

use cost-effective distribution channels such as the Internet,using it as their primary distribution channel, either directly or through online travel agents.



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ORGANISATIONAL OPERATIONS

PEST ANALYSIS` Political Factors :

Security and Terrorism In India, it is a very big threat for thetourism industry because what had happened in Mumbai has reallyhampered the tourism in India.

` Economic Factors:

Economic stability like during Recession, amount of tourists inIndia could fall off considerably. As India and the rest of theworld were suffering from recession the tourism industry wasaffected.

` Social Factors:

People¶s Willingness to Book their trips Online.

How much % of people travel abroad?

Do they like to go on vacations for Leisure.

Do they believe in these online portals?

` Technological Factors

Quality of Internet, lack of knowledge among the users, Speedwith which Transaction can be done. Safety of the transaction.Assurance that the trip is being rightly booked.



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FUTURE PROSPECT

Market Penetration:- to provide discount on two way tickets so thatthey can retain their regular customers and also attract new customer

form this types of schemes.

Market Development:- In this to develop new market with theexisting service they should enter into the market in China and othercountries because U.S.A and INDIA have good trade from China andother countries.

Service Development: - In this they can provide new services like

site seeing and cargo services and holiday packages this could leadthem to enhance their services.

Diversif ication: - Usually no company can maintain their position being in the same sector and the same market so they need todiversify in new market with new products as the mmt should alsodiversify with collaborating with the companies like FED EX and theDHL, UPS in the cargo sector.



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CHAPTER 3

CONCEPTUAL FRAMEWORK

M ARKETING STRATEGY (4P¶S)

The four marketing P (product, price, place and promotion) is important in developing the entire

marketing process for your home based business or small business. The 4Ps will be discussed

in details in the following points in order to ensure a good marketing plan is developed.

i) Product ± There are several aspect that the business owner should take into consideration

for the product or service provided in relation to the marketing strategy. The business owner

have to consider the benefit for the consumer or customer if they purchase the product or

service and detail research in this area is a must. The business owner have to think of creating

a outstanding packaging that it could be separated from the competitors¶ packaging . The

business owner also have to consider the warranty use of the product and how to make the

customer feel that they are staying in the comfortable zone after they buy your product.

ii) Price ± The next important P is the pricing strategy, if you set the price for a product high you

will be facing a great resistance in pursuing people to purchase your product, if you set the price

for a product low you will generate a perception of low quality for the product. The business

owner have to do some home works to find out what is the best price to charge in order to

convince the customer that they have a perception that they are not buying an expensive

product with the same product quality which the competitors are able to provide .

iii) Promotion ± The business owner have to think on how to promote the product or service

provided in order to generate great sales projection. The activities that the business owner

would go through includes identify the type of advertising medium that is to be used, the

marketing effort that is to be carried out, discuss about public relation, describe the promotional

and the plan for using advertising specialties or premium items such as pencil, flower and so on .

iv) Place ± The word place means by itself indicate that where your product should be sell at

and where your customer can purchase your products. Most of the home based business or

small business are selling their product through website, auction or direct mail order . For

example, if you own a SEO company and where you sell your SEO product should be through

online marketplace like forum, online classifieds, webcart and so on. Place is not determined as

where the product originated but is best determined as where you should sell your product.



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MARKETINGMIX

PRODUCT

International and Domestic air tickets.Holiday packages and HotelsDomestic Bus and Railway TicketsPrivate Cars and Taxi Rentals.

Meetings, Conferences, Exhibitions.

PLACE

It has online portal 24 x 7

offices in 20 cities in India, Mumbai, New Delhi, Sydney and

New York.

PRICE

MMT offers competitive economical prices for Tour packages and moreover price is linked with advance booking also.It aimed to offer a range of best-value products and services

along with cutting-edge technology and dedicated round-the-clock customer support.

PROMOTION

MMT offers travel insurance and Business



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Lounges in India and overseas for all travelers provides valuable shopping discount booklets provides pick up and drop services for all air travelers.

Promoting services with strategic alliances with brands like Coke, Sify.com, Maruti Udyog and Nokia etc.

ORGANISATION REVENUE SOURCES

started business in 2000 with a focus on the sales of air ticketsto non-resident Indians in the UnitedStates traveling inbound to India. In 2005 started Indian air ticketing business. Over time,expanded hotels and packages business as well as introduced new non-air services and productssuch as the sale of rail and bus tickets, and facilitating access totravel insurance. We also generate advertising revenue fromthird party

advertisements on websites.

Air Ticketing :



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commissions from airlines for tickets booked by customersthrough distributionchannels as well as incentive payments linked to the number of

sales facilitated. either deduct commissionsat the time of payment of the fare to airline suppliers or collectcommissions on a regular basis from airline suppliers, whereasincentive payments are collected from airline suppliers on a periodic basis. Charge customers a service fee for bookingairline tickets. receive fees from GDS service provider based onthe volume of sales completed through the GDS. Revenue fromair tickets sold as part of packages is eliminated

from air ticketing revenues and added to hotels and packagesrevenue.

H otels and Packages:

Revenue from hotels and packages business generallyrepresents the total amountpaid by customers for these servicesand products as well as revenue from air tickets sold as part of

packages.hotels and packages revenue also includes commissions earned

for the sale of hotel rooms (without packages),and commissions earned as an agent from other online travelagents and aggregators from whom it procure hotelrooms for customers for hotels outside India, which is recordedon a ³net´ basis. As revenue in hotels and packages business is accounted for on a ³gross´ basis, revenuefrom air tickets sold as part of packages is grossed upto includethe fare paid by customers as well as all commissions and feescharged by us, and added to hotels and packages revenue.



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Other Revenue:

Our other revenue primarily comprises revenue from third-partyadvertising on websites,

and commissions or fees from IRCTC for the sale of rail tickets, bus operators for the sale of bus tickets, as well asApollo Munich Health Insurance Company Limited (previouslyknown as Apollo DKV Insurance Company Limited)for facilitation of the access to travel insurance. We also receivefees from aggregators from whom we procureinventory for certain bus tickets, when we book bus ticketsthrough them. We expect that revenue from these other

businesses will continue to contribute an insignificant percentage torevenue in the near future.

Distribution Channels

utilize a variety of technology-enhanced distribution channels to

target the growing Indian middle class

travel market, where Internet penetration is still relatively low. broad distribution network gives access toIndians traveling domestically or overseas and also reaches non-resident Indians and others traveling inbound toIndia.distribution network uses a combination of our websites,call centers and travel stores as well as travel

agents¶ network in India and mobile service platform, giving usmultiple channels to access these customers.customers¶ varied needs are served by different distribution

channels. Over 95% of sales of air tickets



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for travel in India and the majority of sales of air tickets for outbound travel from India are made through website. Sales of air tickets for inbound travel to India tend to be made mainly

through call centers, with call centers accounting for approximately 60.1% of such sales.customers can book standardflight plus hotel packages on websites but the majority of thesales of packages within or outside India are concluded throughcall centers or travel stores. All of rail and bus ticket sales aremade through Indian website.In fiscal year 2010, transactions executed through websites, callcenters and travel stores accounted for

approximately 94.5%, 3.6% and 1.9%, respectively, of totaltransactions, with the remaining portion beingexecuted through travel agents¶ network and mobile service platform.

Travel Agents¶ Network have a travel agents¶ network in India which started in 2009,

where approximately 4,000 travel agents across more than 450cities and towns in India can access B2B website enabling themto sell full suite of online travel products to their customers.B2B website uses a similar interface as external customer-facingwebsites and were able to launch B2B platform in a fewmonths by leveraging technology already being used by us for customer-facing websites. network is attractive totravel agents as it provide access to a range of travel servicesand products which such agents may not be able to access cost-effectively or at all. These travel agents earn commissions from



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them depending on the volume and type of travel services and products sold.Furthermore, travel agents¶ network allows to expand footprint

in India and distribution network in a costeffectivemanner.

M obile

In 2008,it launched ³makemytrip.mobile,´ mobile service platform. mobile service allows customers to search, book and pay for India domestic air tickets on their mobile phones at noadditional cost. Tickets can also be delivered to customers by

SMS. Currently,mobile service is only available for Indiandomestic air ticketsand cancelations and changes cannot be handled via mobile platform but instead are routed to call centers. plan to continue to develop and refine the services which can be

delivered over mobile

STRATEGIES TOMAINTAIN POSITION AS A

MARKET LEADER

The Largest Online Travel Company in India with a Well-

Recognized Brand.

Since commencing our travelbusiness in India in 2005, it has become the largest company in the Indian online travel market,

based on gross bookings for 2009, according to PhoCusWright. In fiscal year 2010, 1.6 million transactions for domestic air ticketsin India and 109,672 transactions for hotels and packages were booked through us. According to comScore,



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www.makemytrip.com was the second most visited travelwebsite in India (after the Indian Railways¶ website) ineach of the years from 2007 to 2009, and had an average of over

1.7 million unique visitors per month in 2009.We believe that our brand is well-recognized in the Indian travelindustry. We were the first and only onlinetravel agency brand to be selected as a Superbrand TM in Indiafor 2009-2010. We have invested in developing and promoting our brand since our inception, using a combination of traditional channels such as print, radio andtelevision, mass media campaigns, as well as search engine

marketing and other innovative digital marketing tools,such as viral marketing and online display banners, to broadenour reach to travelers in India and overseas.We believe that our reputation and market position have also provided us with better leverage when contractingwith airlines, hotels and other suppliers. Primarily as a result of our market position and size, we have been able to

increase our net revenue margins in our hotels and packages business from 8.9% in fiscal year 2008 to 10.6% infiscal year 2009.

Wide Range of Service and Product Offerings.

We offer our customers a wide range of travel and travel-relatedservices and products. We cater to the travel needs of residentsin India as well as non-resident Indians and otherstraveling to India from the United States and other countries.Our services and products include air tickets, hotels, packages, rail tickets, bus tickets, car hire and ancillary travelrequirements such as travel insurance and visa



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processing. We provide our customers with access to all major domestic full-service and low-cost airlines operatingin India and all major airlines operating to and from India, over

4,000 hotels in India and a wide selection of hotelsoutside India, Indian Railways and several major Indian busoperators. We believe our wide range of travel servicesand products makes us a ³one stop shop´ for our customers¶travel needs and allows us to combine multiple productsand provide customized packages that suit the unique needs of our customers. Broad Distribution Network.

use a variety of technology-enhanced distribution channels totarget thegrowing Indian middle class travel market, where Internet penetration is still relatively low. Our distribution network is centered on our India-focused website, www.makemytrip.com(which includes our US sub-domain website) andour United Arab Emirates-focused website, our call centers, and

our 19 travel stores in various cities in India. Wealso have a network of approximately 2,000 agents across morethan 250 cities and towns in India who can accessour business-to-business, or B2B, website enabling them to sellour full suite of online travel services to their customers.Our broad distribution network gives us widespread access totravelers both in India as well as abroad.

Advanced, Secure and Scalable Technology Platform.

We have built an advanced and secure technology platform, which integrates our sales, customer service andfulfillment operations. We have designed our websites to



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be user-friendly, providing our customers with extensive low price options and alternative routings, as well asoffering them combinations of flight and hotel bookings at cost

effective rates. Our websites also enable our customers to find their right destinations easily by usingcolloquial names or major landmarks.

Our web-based booking engine has been designed to link to our suppliers¶ systems either through ³directconnects´ or a GDS (we currently use Amadeus GDS), and iscapable of delivering real time availability and pricing

information for multiple options simultaneously.Our technology platform is able to handle up to 500,000 websiterequests per day. This platform is scalable, andcan be upgraded to handle increased traffic and complexity of products with limited additional investment. Weestimate that an additional investment in hardware costingapproximately $360,000 would increase the capacity of

our technology platform to 1 million website requests per day.As a result of our scalable platform, we were able tolaunch our B2B platform in 2009 in only a few months byleveraging our existing technology.

Customer-Focused Approach.

We place significant emphasis on technology, personnel andtraining to improveour services to our customers. Our customers can choose fromour various customer service channels to contact us,including web-based self service or chat support as well as our toll-free call centers, our travel stores and e-mail. Our



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mobile service platform also enables customers to receive e-tickets and flight alerts via text messages (SMS) on their mobile phones. We provide important travel information on our

websites, such as the on-time performance of airlines, user-generated travel reviews and destination guides tohelp customers conduct research and make traveldecisions. We primarily outsource our call center operations andfulfillment process to IBM Daksh and IntelenetGlobal Services in India, as we believe these experienced andreputable service providers are able to adhere to our customer service standards and enhance our service quality. We

also have a dedicated in-house escalation servicewhich operates 24 hours a day, seven days a week, and isresponsible for addressing issues or complaints raised byour customers.

Ex perienced M anagement Team.

We operate in an industry where we believe one of the most

important assetsis the quality of our people. Our senior management team iscomprised of industry executives with significantexperience in the travel industry, including online travelagencies, in India, the United States and the UnitedKingdom. Our management team also has in-depth experiencein the Internet and information technology industries,having worked with companies such as GE Capital, Amazon,Google and IBM, and in the consumer industry,including Pepsi. We also actively recruit MBA graduates andengineers from leading institutions in India to fill



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CHAPTER4

DATA ANALYSIS AND INTERPETATION

SWOT ANALYSIS

STRENGTH

` Convenience of 24/7 service` Promotion and strategic alliances with brands

` Competitive Priced Products.

` Provides all the travel related services

WEAKNESS

` Operating in a market where people are less technology savvy.` Less bargaining power in the international market.

OPPURTUNITY

` More than 9 million Indians customers travel abroad.



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` International and Domestic Holiday packages increasing .

THREAT

` Its main threat in India is yatra.com which is also the maincompetitor in India.

` Most of Airlines encouraging direct online purchasing.

PORTERS FIVE FOR CE ANALYSIS

The threat of substitute products or services

The existence of products outside of the realm of the common product boundaries increases the propensity of customers toswitch to alternatives:

y Buyer propensity to substitutey Relative price performance of substitutey Buyer switching costs

y Perceived level of product differentiationy Number of substitute products available in the markety Ease of substitution. Information-based products are more

prone to substitution, as online product can easily replacematerial product.



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y Substandard producty Quality depreciation.

The threat of the entry of new competitors

Profitable markets that yield high returns will draw firms. Thisresults in many new entrants, which eventually will decrease profitability. Unless the entry of new firms can be blocked byincumbents, the profit rate will fall towards a competitive level(perfect competition).

y The existence of barriers to entry (patents [1], rights,etc.)The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firmscan enter and non-performing firms can exit easily.

y Economies of product differences

y Brand equityy

Switching costs or sunk costsy Capital requirementsy Access to distributiony Customer loyalty to established brandsy Absolute cost advantagesy Learning curve advantagesy Expected retaliation by incumbentsy Government policiesy Industry profitability; the more profitable the industry the

more attractive it will be to new competitorsy Internet era; today competitors need only a website to enter

a market



36

The intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is themajor determinant of the competitiveness of the industry.

y Sustainable competitive advantage through innovation.

y Competition between online and offline companies; click-

and-mortar -v- brick-and-mortar y Level of advertising expense.y Powerful competitive strategy

y The visibility of proprietary items on the Web.

Companies that are successful with introducing new technology,are able to charge higher prices and achieve higher profits, untilcompetitors imitate them. Examples of recent technologyadvantage in have been mp3 players and mobile telephones.Vertical integration is a strategy to reduce a business' own costand thereby intensify pressure on its rival.

The bargaining power of customers (buyers) The bargaining power of customers is also described as themarket of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to pricechanges.

y Buyer concentration to firm concentration ratioy

Degree of dependency upon existing channels of distributiony Bargaining leverage, particularly in industries with high

fixed costsy Buyer volumey Buyer switching costs relative to firm switching costs



37

y Buyer information availabilityy Ability to backward integratey Availability of existing substitute products

y

Buyer price sensitivityy Differential advantage (uniqueness) of industry products.

The bargaining power of suppliers

The bargaining power of suppliers is also described as themarket of inputs. Suppliers of raw materials, components, labor,and services (such as expertise) to the firm can be a source of

power over the firm, when there are few substitutes. Suppliersmay refuse to work with the firm, or, e.g., charge excessivelyhigh prices for unique resources.

y Supplier switching costs relative to firm switching costsy Degree of differentiation of inputsy Impact of inputs on cost or differentiation

y Presence of substitute inputs

y Supplier concentration to firm concentration ratioy Employee solidarity (e.g. labor unions)y Supplier competition - ability to forward vertically

integrate and cut out the buyer.



38

ANSOFF¶SMATRIX

EXISTING CUSTOMER NEW CUSTOMER

EXSISTING SERVICE

NEW SERVICE

Competition in the Indian Online Travel Agency

Industry

the total ³business-to-customer´ online travel agency market

(i.e. businessesserving end consumers with travel products and/or servicesthrough an online channel) in India is valued at $1 billionand is dominated by four players ² MakeMyTrip, Yatra,Cleartrip and Travelguru (which was acquired by

Market Penetration Market Development

PROVIDE DISCOUNT ON TWO WAY IT CAN ENTER INTO THE MARKET

TICKET. OF CHINA BECAUSE INDIA AND

US HAS GOOD TRADE WITH

CHINA

Service Development Diversification

It can Provide Holiday Packages BUY SMALL COMPANIES IN

CHINA



39

Travelocity in August 2009). Of these, MakeMyTrip commandsa market share of 48%, followed by Yatra at 24%and Cleartrip at 18%, based on gross bookings for 2009. These

online travel agencies face competition fromtraditional travel agents as well as meta search engines, such asIxigo, Ezeego1 and Zoomtra.



40

CHAPTER 5

CONCLUSIONThe Largest Online Travel Company in India with a Well-Recognized Brand. Since commencing our travel business in India in 2005, have become the largest company inthe Indian online travel market, based on gross bookings for 2009. In fiscal year 2010, 1.6 million transactionsfor domestic air ticketsin India and 109,672 transactions for hotels and packages were booked through us. According to comScore,www.makemytrip.com was the second most visited travel

website in India (after the Indian Railways¶ website) ineach of the years from 2007 to 2009, and had an average of over 1.7 million unique visitors per month in 2009.



BIBLIOGRAPHY

MAKEMYTRIP.COM

GOOGL

E.COM

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