MakeMyTrip.com: Case Study and Analysis

Analysis of a case study on India's No. 1 Travel Site, MakeMytrip.com. The presentation also contains the solutions to the questions raised after the case study.

2. COMPANY OVERVIEW
An online travel
service portal
Deep Kalra, CEO of
MakeMyTrip(India)
Pvt Ltd. (MMT)
Focused on the leisure
and small-business
traveller coming to India
Objective to tap the
potential of the huge US$1.5
billion NRI market worldwide

3. 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.

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

6. THE BUSINESSS MODEL & OPERATIONS
Constant monitoring of the service quality given to the customer
Lack a system to track timely customer follow-up
Delay in resolving a customer issue or query
Tracking customer buying and traveling habits
Technological advancement
CONCERNED
AREAS

7. Real-Time Airline
Booking
Hotel Reservation
System
Car Rentals
Interface
Customer
MMT
Sales (CRSs)
MMT
Ticketing
Fed Ex
Customer
MakeMyTrip.com Interface
Airlines
Consolidators
Car Rentals
Hotels
Tour
Operators
Net Carrots
Web Site
Content
MMT Sales
MMT
Operations
Offline (After Sales) InterfaceOnline Interface with MMT
Backend Operations

8. CUSTOMER SEGMENT & ADVERTISEMENT
Indian
Market
International
Traveler
Inbound
Traveler
Holiday
Business
Traveler
Conference
attendees
Students VFRs Others
Outbound
Traveler
Domestic
Traveler

9. CUSTOMER SEGMENT & ADVERTISEMENT
Low PC penetration, poor quality of dialup
access
Limited credit card usage on the
Internet
Hesitation to make purchase on
Internet
Competition from traditional brick-
and-mortar travel agent
Fluctuating international market conditions
CONCERNED
AREAS
MMT
Coke
BCCI
Maruti
Udyog
Matrimon
ial portal
Pilgrimage
portal

10. COMPETITION
MMT
Expedia
Orbit
Travelocity
Priceline
Less competition from
US market
Aggressive advertising
campaigns
Large customer base
CONCERNED
AREAS

11. 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

12. 4 P’s ANALYSIS -MARKETING
4 P’s DESCRIPTION / STRATEGY REMARKS
PRODUCT
•International and Domestic Air Tickets
•Holiday Packages and Hotels
•Domestic Bus and Rail Tickets
•Private Car and Taxi Rentals
•MICE (Meetings, Incentives, Conferences & Exhibitions)
•B2B and Affiliate Services
Save money
Save time
Save energy
Convenient
Traveleasier
PRICE
•Best Price offers
•No middleman involved
•Customer can choose as per budget & their income
•Affordable to all class of customers
Best deal
Affordable
Quickly available
PLACE
•Internetmarketing
•Online e-portal / e-business
•Dedicated 24*7 customer care support
•20 offices in India & 2 international offices
•Franchise across various location
No queues
Anywhere
Anytime
Anyplace
PROMOTION
•Promotion through social sites like Facebook, Twitter, You Tube,Magazine
•Sales promotions
Festival discount
Round trip ticket discount
Best deal of the month
Special offers to different holiday destination
Online website
Travel agents
Communication
Awareness

13. 3P’s OF SERVICE MARKETING
3 P’s DESCRIPTION / STRATEGY
PEOPLE
•Self service marketing–no direct interaction
•Travel agents –distributors & dealers
•24*7 customer care service
PHYSICALEVIDENCE
•Customercare service
•National and International Offices
•Travel Agents offices
PROCESS
•Easy and simple process
•Mode of payment by any bank and any card
•MakeMyTrip on Mobile

14. SERVICE MARKETING STRATEGY TO CREATE BRAND VALUE
•Short term travel insurance
•Offers the latest travel and health oriented information
Travel Insurance
•Country specific mobile connection before departure
•Fulfilling customers specific communication needs when traveling
abroad
International SIM
Card
•Online purchase & transactions facility
•Instant & convenient access to your money in the currency of your
choice
Forex Card
•Welcome gifts
•Accelerated reward point system (Repeated Purchase)
•Discount vouchers
MakeMyTrip
Credit Card
•Individual Gifting (Birthday, Anniversary, Honeymoon, Wedding, etc.)
•Corporate Gifting
MakeMyTrip
Gift Vouchers

15. 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

16. QUESTION 1
1
2
4
In 2004, 3 million inbound travelers were seen visiting India.
In 2007, this figure is estimated to go up to 5 Million at roughly
30% CAGR.
So, We think MMT can sustain business model by focusing on
Inbound Travellers.
There’s also a segment MMT can go for. Medical and Health
Tourism is the sector MMT hasn’t been looked up at.
3

17. QUESTION 1
5
6
8
India provides high quality health services with affordable
prices. Demand for Health Tourism is non-seasonal
MMT can also tie up with giant Hospital chains to provide
overseas customer with HEALTHY DEAL!!!
Due to changes in trends in IT, foreign travel of Resources is the
need
Corporate tie ups with middle level IT companies who lack
Travel Department, MMT can provide them with Travel
Solutions.
7

18. 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
dominate the travel activities category
COMPETITION
•The aggressive advertising campaigns from the competitor like Expedia can take the
MMT market share
CHANGES IN INDUSTRY
•The airlines might provide substantial discounts on their websites and take MMT out
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
For long term
success, MMT
will have to
change its
strategy
QUESTION 1

19. 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 Kalracould
investigate. Does MMT need to look at advertising as
a revenue generator?
QUESTION 2

20. QUESTION 2: SOME STATISTICS
1
2
4
Internet channel has grown the fastest since 2001,taking share
away from most traditional channels.
Internet advertising grew at an annual clip of 18% from 2001-2006
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%
increase over 2006.
3
Consumer related advertising made up 55% of revenue.
Fostering strategic Brand alliance associated with the Indian
consumers is a right strategy to go ahead with.
5

21. QUESTION 2
1. COKE:
Coke Registered 11 percent drop in sales after the
pesticide allegations in India in 2003
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.
7.56
4.36
5.2
4.26
2003 2004 2005 2006
Coca Cola Revenue Year over Year
Globally
LET’S LOOK AT BRANDS BEING ADVERTISED

22. 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.

23. 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

24. QUESTION 3
•Overseas Chinese population is 50 millions which
is majorly present in Thailand, Indonesia,
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.
CHINA

25. QUESTION 3
•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.
SINGAPORE
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
1970
(Census)
1980
(Census)
1990
(Census)
2000
(Census)
2010
(Census)
SINGAPORE POPULATION
Total Population ('000)Singapore Residents ('000)

26. QUESTION 3
•With more than 100 million Filipinos living in
Philippines, there are well About 10% i.e. 10
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.
PHILIPPINES

27. THANK YOU!