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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