Aamir-330-Corporate Travel BPO ITC

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“A comparative analysis between automotive industryand Consumer package goods in order to find the target

market for a corporate travel BPO”

Submitted to

Bangalore UniversityIn partial fulfillment of

the requirements for the awardof the degree of

Masters of Business Administration

Under the guidance of External Guide Internal Guide

Mr. Prabhjinder Bedi Dr. N.S. ViswanathManager – BPO ProfessorITC-Infotech Ltd. M.P.B.I.M – B.V.BBangalore Bangalore

By S Md Aamir Sayeed

(Reg no. 03XQCM6057)

M.P.Birla Institute of Management

Associate Bharatiya Vidya BhavanBangalore-5600012005-2006



STUDENT DECLARATION

I hereby declare that this project report entitled “Making a comparative

analysis between automotive industry and Consumer package goods in

order to find the target market for a corporate travel BPO” has been

undertaken and completed by me under the valuable guidance of Mr.

Prabhjinder Bedi, Manager-BPO ITC-Infotech Limited and Prof. N S

Viswanath in partial fulfillment of degree of Master of Business

Administration (MBA) program is my original work and not submitted

for the award of any other degree, diploma, fellowship or other similar

title or prizes.

S Md Aamir Sayeed

Reg No: 03XQCM6057



PRINCIPAL’S CERTIFICATE

This is to certify that this report titled “Making a comparative

analysis between automotive industry and Consumer package goods

in order to find the target market for a corporate travel BPO “ has

been prepared by Mr. S Md Aamir Sayeed bearing

registration number 03XQCM6057, under the guidance of Dr.

N S Viswanath, M P Birla Institute Of Management, Assosiate

Bhartiya Vidya Bhavan, Bangalore.

Place: Bangalore Dr. Nagesh Malavalli

Date: 17th July’05 Principal



GUIDE’S CERTIFICATE

This is to certify that this report titled “Making a comparative analysis

between automotive industry and Consumer package goods in order to

find the target market for a corporate travel BPO ” has been preparedby Mr. S Md Aamir Sayeed bearing registration number 03XQCM6057,

under my guidance. This has not formed a basis for the award of any

Degree/ Diploma by Bangalore University or any other university.

Place: Bangalore Dr. N S Viswanath

Date: 17th july’05 Project Guide



ACKNOWLEDGEMENT

I am extremely great full to Miss. Anita Saldanha, Senior Officer

(Human Resource Management) for permitting me to carry out this

study.

I would like to thank Mr. Prabhjinder Bedi ,Manager -BPO who

allowed me to work under him and gave me an opportunity to be part

of business plan.

I wish to place on record my deep sense of gratitude to Dr. N S

Viswanath for his expert advice, valuable guidance, sustained Interest

and criticism in the preparation of internship report.

I would like to express my profound gratitude to all those who have

helped me directly or indirectly in the course of this study.

Place: Bangalore S Md Aamir Sayeed

Date: 17th July’05 Reg No: 03XQCM6057



Contents

S.No. Particulars Page No.

Part A

1 Introduction 1 – 2

2 ITC Limited –Overview 3 – 8

3 ITC-Infotech limited 9 – 10

4 Overview - Travel pattern in acorporate

11 – 12

5 Brief overview about CPG&Automotive Sector

13 – 14

6 ROI calculator 15 - 16Part B

7 Research methodology 17- 20

8 Analysis of Data 21 – 38

9 Research findings 39 – 45

10 Recommendation 46 – 48

11 SWOT analysis 49

Bibliography 50 - 51

Annexure



M.P. Birla Institute of Management, Bangalore

7

INTRODUCTION

ITC InfoTech is an SEI CMM Level 5 software services &

solutions provider. Supported by ITC’s strong business

fundamentals, our corporate vision and resources are totally

aligned to deliver to our global clients the true essence of

“Business-friendly Solutions” innovatively and cost-effectively.

It is a part of the ITC Group, one of the world' s most

successfully diversified companies. ITC is one of India’s

foremost private sector companies with a market capitalization

of around US $ 6 billion and a turnover of US $ 2.6 billion. Rated

among the World' s Leading Companies byForbes magazine, ITC

ranks fourth in net profit among India' s private sector

corporations. ITC has a diversified presence in Cigarettes,

Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery,

Greeting Cards and other FMCG products.

Need for the study

The need to undergo this training for a MBA student of

Bangalore University is to fulfill the requirement of MBA degreecourse of the University. The training is undertaken during

May-August 2005 and main purpose of the training is to

understand the real time business scenario & know the practical




8

implication and policies of the company. The theoretical aspects

that we study during our course can

be implemented into practice. This is done in order to sustain a

WIN-WIN situation for the company and oneself.

Objectives of the study

Getting an insight of practices & policies followed in carrying

out a business Plan in corporate scenario. As the annual travel

spend of fortune 500 companies range from $10 Million to $100

Million thus if they outsource their travel need to destination

like India where FTE (full time equivalent) is 1/3 of American

counterpart. Then these companies can reduce cost and show

better profitability in their balance Sheet.




9

ITC Limited –Overview

ITC is one of India's foremost private sector companies with a market

capitalization of over US $ 8 billion and a turnover of US $ 2.6 billion.

Rated among the World's Leading Companies by Forbes magazine,

ITC ranks third in pre-tax profit among India's private sector

corporations. ITC has a diversified presence in Cigarettes, Hotels,

Paperboards & Specialty Papers, Packaging, Agri-Business, Branded

Apparel, Packaged Foods & Confectionery, Greeting Cards and other

FMCG products. While ITC is an outstanding market leader in its

traditional businesses of Cigarettes, Hotels, Paperboards, Packaging

and Agri-Exports, it is rapidly gaining market share even in its nascent

businesses of Branded Apparel, Greeting Cards and Packaged Foods &

Confectionery.

ITC employs over 15,000 people at more than 60 locations across

India. Ranked among India's most valuable companies by the 'Business

Today' magazine, ITC continuously endeavors to enhance its wealth

generating capabilities in a globalizing environment to consistently

reward more than 1, 37, 544 shareholders, fulfill the aspirations of its

stakeholders and meet societal expectations. This over-arching vision

of the company is expressively captured in its corporate positioning

statement: "Enduring Value. For the nation. For the Shareholder."




10

Background

ITC was incorporated on August 24, 1910 under the name of ' Imperial

Tobacco Company of India Limited' . Its beginnings were humble. A

leased office on Radha Bazar Lane, Kolkata, was the centre of the

Company' s existence. The Company celebrated its 16th birthday on

August 24, 1926, by purchasing the plot of land situated at 37,

Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of

Rs 310,000. This decision of the Company was historic in more ways

than one. It was to mark the beginning of a long and eventful journey

into India' s future.The Company' s headquarter building, ' Virginia

House' , which came up on that plot of land two years later, would go

on to become one of Kolkata' s most venerated landmarks. The

Company' s ownership progressively Indianised, and the name of the

Company was changed to I.T.C. Limited in 1974. In recognition of the

Company' s multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology,

Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods,

Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in

the Company' s name were removed effective September 18, 2001. The

Company now stands rechristened 'ITC Limited' .




11

History and Evolution

Though the first six decades of the Company' s existence were primarily

devoted to the growth and consolidation of the Cigarettes and Leaf

Tobacco businesses, the Seventies witnessed the beginnings of a

corporate transformation that would usher in momentous changes in

the life of the Company.

• ITC' sPackaging & Printing Business Division, was set up in

1925 as a strategic backward integration for ITC' s Cigarettes

business. It is today India' s most sophisticated packaging house.

• In 1975 the Company launched its Hotels business with the

acquisition of a hotel in Chennai which was rechristened 'ITC-

Welcomgroup Hotel Chola'. The objective of ITC' s entry into

the hotels business was rooted in the concept of creating value

for the nation. ITC chose the hotels business for its potential to

earn high levels of foreign exchange, create tourism

infrastructure and generate large scale direct and indirect

employment. Since then ITC' s Hotels business has grown to

occupy a position of leadership, with 66 owned and managed

properties spread across India. It also has a marketing and

reservation arrangement with the Sheraton Corporation, the

reputed international hotel chain.

• In 1979, ITC entered the Paperboards business by promoting

ITC Bhadrachalam Paperboards Limited, which today has




12

become the market leader in India. Bhadrachalam Paperboards

amalgamated with the Company effective March 13, 2002 and

became a Division of the Company, Bhadrachalam Paperboards

Division. In November 2002, this division merged with the

Company' s Tribeni Tissues Division to form the Paperboards &

Specialty Papers Division. ITC' s paperboards' technology,

productivity, quality and manufacturing processes are

comparable to the best in the world. It has also made an

immense contribution to the development of Sarapaka, an

economically backward area in the state of Andhra Pradesh. It is

directly involved in education, environmental protection and

community development. In 2004, ITC acquired the paperboard

manufacturing facility of BILT Industrial Packaging Co. Ltd

(BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit

allows ITC to improve customer service with reduced lead time

and a wider product range.

• In 1985, ITC set up Surya Tobacco Co. in Nepal as a joint

venture with the reputed Soaltee group. In August 2002, Surya

Tobacco became a subsidiary of ITC Limited and its name was

changed to Surya Nepal Private Limited (Surya Nepal).

• In 1990, ITC acquired Tribeni Tissues Limited, a Specialty

paper manufacturing company and a major supplier of tissue

paper to the cigarette industry. The merged entity was named the

Tribeni Tissues Division (TTD). To harness strategic and

operational synergies, TTD was merged with the Bhadrachalam




13

Paperboards Division to form the Paperboards & Specialty

Papers Division in November 2002.

• Also in 1990, leveraging its agri-sourcing competency, ITC set

up the International Business Division (IBD) for export of

agri-commodities. The Division is today one of India' s largest

exporters. ITC' s unique and now widely acknowledged e-

Choupal initiative began in 2000 with soya farmers in Madhya

Pradesh. Now it extends to 6 states covering over two million

farmers.

• In 2000, ITC' s Packaging & Printing business launched a line of

high quality greeting cards under the brand name ' Expressions' .

In 2002, the product range was enlarged with the introduction of

Gift wrappers, Autograph books and Slam books. In the same

year, ITC also launched ‘Expressions Matrubhasha’, a

vernacular range of greeting cards in eight languages and

‘Expressions Paperkraft’, a range of premium stationery

products. In 2003, the company rolled out ‘Classmates’, a range

of notebooks in the school stationery segment.

• ITC also entered the Lifestyle Retailing business with the Wills

Sport range of international quality relaxed wear for men and

women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear

(2002) and Wills Clublife evening wear (2003). ITC also

initiated a foray into the popular segment with its men' s wear

brand, John Players, in 2002.






15

ITC-INFOTECH LIMITED

ITC Infotech is an SEI CMM Level 5 software services & solutions

provider. Supported by ITC’s strong business fundamentals, its

corporate vision and resources are totally aligned to deliver to global

clients the true essence of “Business-friendly Solutions” innovatively

and cost-effectively.

Welcome to ITC Infotech India Ltd.: Its a reputed Business Process

Solutions company with over 2600 employees servicing leading

Fortune 500 firms with BPO & Offshore Outsourcing in a single

integrated service platform.

Based in the sprawling 36 acre ITC InfoTech park (in Bangalore,

India), BPO business commenced in September 2002 with one end-

client. Today, they have extended their services to multiple Fortune

class clients in Americas and Europe working 24X7.

Business process outsourcing solutions deliver a distinct value to needs

of an offshore-based Business Solutions Partner. Experience in

building successful delivery environments ensures client' s risks are

mitigated, backed with their market and industry experience, domain

expertise, process and people management skills.

“ITC Limited” their parent company is a USD 2.6 Billion business

conglomerate with diversified knowledge in businesses that span the








18

reshaped the role of travel managers and re-emphasized the

importance of travel management.

Business travel volumes and expenditures fluctuate with the

economy, but even in lean times, corporations send people on

the road. The 2004 Business Travelers Survey is one in of several

indicators showing that business travel is on the rise.

Business travel is integral to the travel industry, and the

American economy. 38.3 million Americans generated 210.5

million domestic business person trips in 2003. They spent

$153.2 billion – nearly one-third of the domestic travel market.

Corporate approach to travel policy. Just over four in ten (44%)

business travelers report they must use the telephone or

websites to book business trips on their own. On the other hand,

nearly that many (37%) report they book travel in one of fourways, classified as managed travel programs:

• A central travel management department or on-site travel

agency (17%)

• An off-site travel agency (9%)

• A central travel management department plus company-wide

bookingSoftware (6%)

• An Internet-based travel agency, such as Orbitz for Business,

Expedia




19

Corporate Travel or Travelocity Business) (5%)

Business Process Outsourcing- The New Growth Sector

• Global outsourcing spending is projected to top $1.2 trillion

by the end of 2003.

• Globally, outsourcing spending is increasing by 11 percent

per year.

• Two thirds of the outsourcing spend is in large Fortune 500

companies.

• Two-thirds of outsourcing spending is in the US.

• Shrinking margins will force more companies to break with

tradition and consider BPO to reduce operating cost.

• A lot of demand is expected to be generated by HR

processes especially payroll Management

• In India , ITES-BPO segment registered a growth of 59% to

reach Rs. 113bn (US $2.3 billion)

• According to current industry estimates, India commands

more than 90% of all offshore outsourcing in IT services

• ITeS contributed 25% to the total IT Software and Service

exports from India during FY03

• Captive ITES-BPO players have almost doubled their share

in Indian software exports, growing by a phenomenal 90%

in last financial year




20

• ITES-BPO segment is projected to register a growth of 54%

to clock revenues of US$ 3.6 billion during FY2003-04

• The ITeS industry is expected to grow to Rs. 810bn in 2008.

Brief overview about CPG sector

The retail-consumer packaged goods (CPG) industry has

changed. The challenging global economic conditions of 2000-

2003 have required enterprises to become more agile andadaptable, and to improve real-time decision-making

capabilities. Relying on instinct or traditional processes to make

decisions will not deliver the business results that financial

markets demand.

Today, competitive advantage in the retail-CPG industry

depends on a relentless drive to increase productivity and

remove costs from operations, prudent investments to deliver

customer value, and precise execution to provide consistency

and quality. Leaders are consistently working to improve the

productivity and efficiency of their organizations, while

enhancing customer service and satisfaction. Delivering the right

product—in the right quantity, location and price—requires the

ability to assess, decide, and execute.




21

Management consulting firm Accenture conducted a study with

63 of STORES Magazine' s top 100 publicly held global retailers

in 2000. The study revealed that, in the last decade, only one-

third of the retailers surveyed were able to generate revenue

growth above the industry average of 9.9 percent and/or to

generate stock price growth above the Standard and Poor' s

(S&P) 500 average of 13.7 percent. What did these successful

companies have in common? They achieved operational

excellence using innovative business methods and technology.

Brief overview about automotive sector

The auto industry is facing the most difficult market in half a

decade with a mixture of worry and determination, according to

the latest KPMG survey of top vehicle manufacturer and

supplier executives. Unlike previous downturns, this one seemslikely to accelerate broad changes now under way. The global

car industry that emerges in several years could look quite

different from the recent balance of competitors, executives

believe. Highlights of the survey findings include:

• In the past 12 months, expectations of a return to healthy

profit levels have moved sharply outward, from next year tomid-decade.




22

• No part of the North American –based industry, with the

possible exception of dealers, is doing well. This is

readjusting the balance among industry players.

• North American –based makers will likely continue to lose

global market share to Asian companies, while European

makers should hold their own or slightly advance.

• To regain momentum, Nor th American–based makers need

to focus on consumer needs and more compelling new-model

design and technology.

• Consumer loyalty to brands and dealers will continue to

decline.

• There is, nevertheless, considerable confidence that North

American makers and suppliers can overcome their

difficulties.




23

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26

Title of the project

“Making a comparative analysis between automotive

industry and Consumer package goods in order to find the

target market for a corporate travel BPO”.

Objectives

1. To determine the ROI on the project.

2. To determine potential companies from the database that

can become prospective customer to ITC.

3. To formulate a process flow chart for the booking process

in a corporate.

4. To sketch Travel Industry Supply Chain Evolution

Hypothesis

“Annual Travel expenditure of CPG & Automotive sector

is the same”

Scope of the Study

The project has been carried out at ITC-InfoTech, Bangalore. The

feedback is taken from corporate travel manager of fortune 500

companies from U.S i.e. Wal-Mart, Harley Davidson etc.




27

Research Design

The Research methodology used in this project is a combination

of exploratory and descriptive research.

INSTRUMENTATION TECHNIQUE:

¾Structured Questionnaires and Telephonic interview

sessions have been used as instrumentation techniques to

carry out the work-assignment.

¾Telephonic interview schedules have been drawn for those

sample units that could not be contacted directly for

response generation.

¾Since our research investigation is highly quantitative, we

could not subject the data to rigorous statistical treatment.

In overview, the qualitative research is as significant as

quantitative.

Primary Data collection:

Primary data collection refers to data collection through,

¾Through structured questionnaires for Corporate Travel

Manager’s.

¾Through personal interviews with for Corporate Travel

Manager’s .




28

Secondary Data collection:

This refers to indirect means of data collection through,

¾Browsing through the internet

¾Company intranet

¾Newspapers

¾Journals, Travel Magazines

Sampling Plan

Stratified sampling is commonly used probability method that

is superior to random sampling because it reduces sampling

error. A stratum is a subset of the population that share at least

one common characteristic. Examples of strata might be same

business sector or managers and non-managers. The researcher

first identifies the relevant stratum and their actual

representation in the population. Random sampling is then used

to select a ‘sufficient ‘number of subjects from each stratum.

"Sufficient" refers to a sample size ‘large enough’ for us to be

reasonably confident that the stratum represents the population.

Sampling Procedure

The survey was carried out through Stratified random sampling

Stratified random sampling is the sampling procedure that divides the population

under study into mutually exclusive sub populations, and then selects random

samples from each of these sub populations. The sub populations are determined in

such a way that the parameter of interest is fairly homogenous within a sub

population. By doing so, the variability of the population parameter within each




29

sub population should be considerably less than its variability for the entire

population. Oftentimes, there is a relationship between the characteristics of a

certain population and the population parameter.

EX. In determining the distribution of incomes among engineersin the Bay Area, we can divide the population of engineers into

sub populations corresponding to each major engineering

specialty (electrical, chemical, mechanical, civil, industrial, etc.).

Random samples can then be selected from each of these sub

populations of engineers. The logic behind this sampling

structure is the reasonable assumption that the income of an

engineer depends, to a large extent, on his particular specialty.

Sampling Unit

This consists of corporate travel manager from fortune 500

companies of U.S.

Sampling Size

Number of companies contacted: 20 each sector

Limitations of the Study

1. The study is limited to only U.S companies

2. Language accent of U.S respondent was a barrier for in-

depth discussion.

3. Opinions of the findings may be biased because many

doubted that the study is done for ITC-InfoTech,

Bangalore.




30

4. Getting an appointment with the corporate travel manager

was a problem.

5. Some Corporate travel manager could not give out the

required information as it was thought confidential.

6. Mental framework of the respondents is a factor, which

can bias the results.




31

ANALYSIS

1. Percentage of air travel in a month

Air travel-CPG

010

2030

405060708090

100

adidas-

alps

Asahi

As

sociated

ce

nvco inc

columbia

D

el monte

gillete

Hitachi

m

illbrooks

company

frequ

ency Internal

Externa l

Air Travel - Au tomotive

0

20

40

60

80

100

120

American Axle

&

BorgWarner

Inc.

Collins &

Aikman

Eaton

Corporation

Ford Motor

Company

Guardian

Industries

Huntsman

International

ITT Industries,

Inc.

New United

Motor

Penske Truck

Leasing

Company

Frequency

Internal

External

Observation:

CPG travel (external Vs internal) is 33:67, whereas in case

of Automotive its 35:65. Therefore, the travel need and

requirement of both the sector are same.




32

2. How does travel booking occurs

Travel bookin occurs-CPG

65%

35%Central ised

Decentral ised

Travel booking-Automotive

35%

65%

Centralised

Decentralised

Observation:As compared to Automotive, CPG sector has a more

centralized booking system. Therefore, tapping a CPG client

about the cost benefit and other benefit associated to off shoring

is better




33

3. Do u have a separate travel department?

Travel De partment-CPG

65%

35%

yes

no

Seperate travel department-Automotive

95%

5%

yes

no

Observation:

The sector which has a travel department and paying to

employee in US dollars. This sector could be targeted for

leverage between American and Indian off shored employee.




34

4. Inhouse or agency

Current travel solution-CPG

20%

65%

15%

Agency

Inhouse

online

Current Travel solution-automotive

30 %

50%

20 %

Agency

Inhouse

Online

Observation:

ARC code and GDS of the companies can be used for booking in

their name only. This way ITC –Infotech as well as other

companies can save on the technological and installation cost.




35

3(a) ARC code

ARC code-CPG

65%

35%

yes

no

ARC code-Automotive

50%50 %

ye s

no

Observation:

More CPG companies have ARC code as compared to

automotive companies. ARC code enables ITC-Infotech to pushcustomer in order to off shore their travel need in order to

reduce cost.




36

3(b) GDS

GDS-CPG

1 5%

8 %

3 9%8 %

1 5%

1 5 %

Amadus

Appola

Cyber

Gali leo

W orld s pan

Saber

GDS- AUTOMOTIVE

49%

38%

13%

AMADUS

APPOLO

CYBER

Observation:

ITC InfoTech is more oriented towards Amadeus and

Apollo as they are tied up with Amadeus and Apollo.

From the above graph automotive industry is a better

target as their GDS matches with ITC’s choice .




37

4. How long associated

Association -CPG

0

2

4

6

8

10

12

14

16

adidas-

alps

A

sahi

Associated

cenvco

inc

columbia

Del m

onte

g

illete

Hitachi

millbrooks

company

years

Agency

Inhouse

On-line

Associated years-Automotive

0

5

10

15

20

25

American Axle

&

BorgW

arner

Inc.

Collins &

Aikman

Eaton

Corporation

Ford Motor

Company

Guardian

Industries

Huntsman

International

ITT Industries,

Inc.

New United

Motor

Penske Truck

Leasing

company

yea

rs

Agency

Inhouse

Online

Observation:Longer the association tougher the task for change over.

As this involve not only financial but emotional & psychological

risk. Almost the average year of association is same for both the

sector




38

5. Inclusive package inclination

Inclusive package-CPG

72 %

28%

yes

no

Inclusive Packag e

65%

35%

ye s

no

Observation:

CPG sector is more inclined to go for inclusive package.

This clearly indicates their cost cutting objective. This issue can

be considered for making a business plan to CPG sector




39

6(a) Air frequency trips

Air frequency-CPG

0

500

1000

1500

2000

2500

adida

s-

alps

Asahi

Associated

cenvco i

nc

colum

bia

Del m

on

te

gillete

Hitachi

m

illbroo

ks

company

frequency

Domest ic

International

Air travel frequen cy-Automotive

0

200

400

600

800

1000

1200

1400

1600

1800

American Axle

&

BorgWarner

Inc.

Collins &

Aikman

Eaton

Corporation

Ford Motor

Company

Guardian

Industries

Huntsman

International

ITT Industries,

Inc.

New United

Motor

Penske Truck

Leasing

compny

Frequen

cy of travel

Domestic

International

Observation:

Automotive sector fly domestic more frequently ascompared to the CPG sector. Therefore travel need of automotive sector is more. Hence, a travel solution to supportthis need would be easily accepted.




40

6(b) Air spent annually

Air-Spent CPG

0

2

4

6

8

10

12

14

16

ad

idas-

alps

Asahi

Associ

ated

cenvco inc

colu

m

bia

Del m

onte

gillete

H

itachi

m

illbrooks

Company

Million $

Air-Spent

Annual air spend-Automotive

0

2

4

6

8

10

12

14

16

American Axle

&

BorgWarner

Inc.

Collins &

Aikman

Eaton

Corporation

Ford Motor

Company

Guardian

Industries

Huntsman

International

ITT Industries,

Inc.

New United

Motor

Penske Truck

Leasing

Company

M

illion $

Air-Spent

Observation:Annual spent of automotive sector ($ 190M) is more than

CPG($140M) therefore automotive sector can be better target

customer as compared to CPG




41

7. Class of travel

Class of travel - CPG

33%

67%

business

coach

Class of travel-Au tomotive

46%

54 %

business

coach

Observation:

Automotive sector more frequently opts for business class

as compared to CPG sector.




42

8. Factor concerned

Factors concerned- CPG

65%

21%

14%

Cost

Time

Connectivity

Factors concerned-Automotive

65%

29 %

6% cost

time

connectivity

Observation:

Cost factor is given maximum importance in both thesector.




43

9. Turnaround time

Time - CPG

0

5

10

15

20

25

30

adidas-

alps

Asahi

Associated

cenvco inc

colum

bia

Del m

onte

gillete

Hitachi

m

illbrooks

Time-taken

Turn arround time-Autmotive

0

5

10

15

20

25

30

American Axle

&

BorgWarner

Inc.

Collins &

Aikman

Eaton

Corporation

Ford Motor

Company

Guardian

Industries

Huntsman

International

ITT Industries,

Inc.

New United

Motor

Penske Truck

Leasing

company

time in hr

time

Observation:

Booking turn around time of automotive is more as

compared to CPG sector therefore if a solution that can reduce a

turnaround time significantly

Could be a effective tool for better service encounter.






45

11. Traveler choice

Trave l ler Choice -CPG

4 7 %

2 1 %

3 2 %

Bread &

breakfast

Full service

Executive

class

Trave llors choice-Automotive

1 9%

4 6 %

3 5%

Bread & breakfast

Full serviceExecut ive class

Observation:

Automotive sector prefers more full service trips as

compared to Bread & breakfast and executive class. This

displays their propensity to spend is more as compared to CPG

sector.




46

12. Satisfaction level

Satisfaction Level - CPG

0

1

2

3

4

5

6

adidas-

alps

Asahi

Associated

cenvco inc

colum

bia

Del m

onte

gillete

Hitachi

m

illbrooks

Company

Satisfaction L

Sat is fact ion- level

Satisfaction Level -Au tomotive

0

1

2

3

4

5

6

American Axle

&

BorgWa

rner

Inc.

Collin

s &

Aikm

an

Eaton

Corpora

tion

Ford M

otor

Company

Guard

ian

Industries

Huntsm

an

International

ITT Indus

tries,

Inc.

New United

Moto

r

Penske T

ruck

Leasing

Satisfaction-Level

Observation:

If a customer is satisfied with the services provided by the

vendor then it becomes a tougher to shift the customer from

previous vendor to new vendor. Here, CPG satisfaction level is

more than automotive sector so it’s tough to tap them for

outsourcing.




47

13. Conflicting area

Trav el issues - CPG

14%

20%

9%11%

46%

internet

connectiv ity

quality

unplanned

delay/t ime

Travel issues-A utomotive

50%

10%

10 %

20%

10%

internet

connectivity

unplanned schedule

delay/time

management support

Observation:Those area’s are posing more problem has to be tackled

properly as this could be the foundation stone for delighting the

customer. Moreover, these issues could be strategically tackled

to attract customer for out sourcing.




48

Hypothesis testing

Four hypotheses has been tested based on the variable noted

below

¾Annual Air Spent

¾Annual Car spent

¾Annual hotel Spent

¾Turnaround time

¾Satisfaction level

This has been calculated and assessed for Automotive & CPG

industry. Result indicate a strange sequence, while the amount

spent on Air, hotel & car are not significantly different by its

mode. At the same time satisfaction level derived and the

turnaround time are relatively low & high respectively.

This result cause for special effort to increase the

satisfaction level making an assessment of end user requirement.This interest turn around time to be reduced by half (our

assessment) to make the customer satisfaction level higher then

what is today!! The organization has to adopt twin strategy to

reduce turnaround time and increase satisfaction level to make

proposition viable.

How far this viable remains is a matter of speculation. Given thechanging scenario the company has to restore to expansion

mode in deriving service value and in providing in-depth level

of customer satisfaction




49

Process Flow Chart in corporate travel

Algorithm

�Plan for Travel

�Request for travel using Lotus notes

o One copy sent to Authorization Authority

o Other copy to Agency/In-house

o Select the urgency of trip or not (Mention)

�Authorization authority /immediate senior approve the

trip & Authorization Code is generated

o Send copy to traveler

o Send copy to Agency

�Agency finds suitable itenary for traveler

o If yes : sent to traveler to select from the given option

o If No (in case of non-availability of specified class of

travel): Approval request generated for theAuthorization authority /immediate senior for other

option for travel.

�Traveler choose a the option given by Agency

o Submits Credit Card no./ Corporate card no. for

booking

�Reservation is made�E-ticket are generated & issued

�Ticket delivered to traveler

�MIS complication




50

PROCESS FLOW CHART – 1

Note : Travel process depicts the scenario when option is matched with the

requisition

Traveler

Agency/In-

house

Authorization

authority /

immediate senior

TicketBooking &

Generation

Travel

Requisition

Itenary

Generated

ApprovedProviding payment detail i.e. CC no.

Sent for approval

Perm

Permit




51

Traveler

Agency/In-house

Authorization

authority /

immediate senior

Ticket

Booking &

Generation

Travel

Requisition

Approved

Providing payment detail i.e. CC no.

Permit

Permit

Itenary not

available optionsIntimated

P

Sent

for

Approval

PROCESS FLOW CHART –2

Note : Travel process depicts the scenario when option is not-matched with the

requisition




52

Travel Industry Supply Chain Evolution

¾Traditional Data center model and systems

¾Traditional Data center model and systems withadditional complexity

¾Traditional Data center model and systems withadditional complexity

Airlines

Consumers

&

Corporations

Airlines

Consumer

&

Corporatio

Travel

Agents

Airlines

Co

Cor

Travel

Agents

Computer

Reservati

on system

(CRS)






54

¾Proliferation of Open Systems!

Suppliers CallCenter

SupplierWebsiteOrbitz

¾Entrance of GDS “substitution” technology!Suppliers CallCenterSupplierWebsiteOrbitz

Travel

Suppliers

Co

Cor

Travel

Agents

Global

Distributi

on system

(GDS) InternetTravel

Agents

Travel

Suppliers

Co

Cor

Travel

Agents

GlobalDistributi

on system

(GDS) InternetTravel

Agents

• Cor

• Direct Connect

• Direct Connect




55

SWOT ANALYSIS

STRENGTHS

£

BRAND NAME

¾ TECHNICAL

SUPERIORITY

¾ ITH ASSOCIATION

WEAKNESS

¤

METHOD OF ACCESS

TO US CLIENTS

¤

PROCEDURES

¤

REGULATIONS

OPPORTUNITIES

¤

COUNTRY NAME

¤

LARGE UNTAPPED

MARKET

¤

OUTLOOK OF

FORTUNE

¤

COMPANIES

CHANGING

¤

COST CUTTING BY

FORTUNE

COMPANIES

THREATS

¾ ETHOCENTRIC

BEHAVIOUR OF

AMERICAN

COMPANIES

¾ FINANCIAL RISK

¾ PHYCOLOGICAL RISK

OF

CLIENT




56

CONCLUSION

Present marketing scenario where sustaining the profit is a big

task, Companies need to diversify their business activities as

well as look for new horizons of generating profit. ITC is brand

mogul in cigarette but due to government regulation the profit

margin is detoriating day by day.

Today, ITC products play a vital role in varied sectors of the

economy. One can find them performing with Cigarettes,

Hotels, Paperboards & Specialty Papers, Packaging, Agri-

Business, Branded Apparel, Packaged Foods & Confectionery,

Greeting Cards and other FMCG products. World class quality,

entrepreneurial leadership and high professionalism have made

ITC a company to be reckoned with anywhere in the world.

RECOMMENDATIONS

• Organize a corporate meet and inform about off shoring

benefits

• Companies other than US can also be targeted




57

BIBLIOGRAPHY

Book:

¾Kotler Philip, Principles of Management …………… PHI

2001

¾Marketing of Services by SN Jha, Himalaya Publication

Journals: ¾IBM survey on Travel & GDS 2003

¾Journal for Corporate industry

¾Forbes 2003 edition

Websites:

www.itcinfotech.com

www.itcportal.com

www.indiainfoline.com

www.google.co.in

www.hoovers.com

www.fortune500.com

www.orbitz.com

www.btitravel.com




58

SAMPLE DATABASE

S.No CPG COMPANY AUTOMOBILE COMPANY

1 Adidas-Salomon AgAmerican Axle &Manufacturing Holdings, Inc.

2 Adolph Coors CompanyAmerican Standard CompanieInc.

3 Alps Electric Comp Borg Warner Inc.

4 Amcon Distribution Comp Brunswick Corporation5 Asahi Brewries Ltd Collins & Aikman Corporation6 Asics Corp Dow Corning Corporation

7 Associated Food Stores, Inc. Eaton Corporation

8 Boston Market Corp Federal-Mogul Corporation

9 Cenvco Inc Ford Motor Company10 Cclarion Co Ltd General Electric Company

11 Columbia Sports Wear Guardian Industries Corp.

12 Conagra Foods Inc Harley-Davidson, Inc.13 Del Monte Food Huntsman International LLC

14 GatewayInternational Truck and EnginCorporation

15 Gillete Company ITT Industries, Inc.

16 HetateNavistar InternationalCorporation

17 Hitachi America, Ltd.

New United Motor

Manufacturing, Inc.18 Microsoft Corporation Penske Corporation

19Millbrooks DistributionServices Penske Truck Leasing

20 Mitshubishi ElectricThe Goodyear Tire & RubberCompany




59

QUESTIONNAIRE

1. Percentage of travel monthly?• Internal company business (visit offices/plant/company

meeting)

• External company business (sales call, visit customers orvendors)

2. How does travel booking occurs?

• Centralized

• Decentralized

3. Do you have separate travel department? Yes / No

a) If yes, then who takes care of travel management…………..

3. What’s your company’s current travel solution?I. Agency

If yes

i. What are your preferential tie-ups with youragency (Skip to Question 6 )

II. In-houseIf yes

�Do you have ARC code?Yes /No

ii. Which is the current GDS of your company?• Amadeus

• Abacus

• Galileo

• Multi GDS




60

• Sabre

• World span

• Other

4. Since how long are you associated with your travel solutionprovider?

5. Do you look for an inclusive package (Air/car/hotel) in yourcorporate travel?

If Not, why??

6. Please mention the following detail?

Particulars Domestic International

Frequency of trips in a month

Air spent

7. What is the class of travel among the below mentionedclass?

8. Rank these factors, which you consider, are of main concernwhile traveling?

• Cost of travel

• In-flight business facilities

• Amount of time it takes to complete the travel

• Connectivity




61

• The level of convenience

9. What is the turnaround time between booking and

response?

10.What is your company’s annual spending?

Travel Domestic International

HotelCar

11. What % of travelers opts to stay in below mentioned class?

• Bread & breakfast**• Full service

• Executive class

12. Please rank your satisfaction level w.r.t. current travelsolution?

1 2 3 4 5

13. Please rank in order of your preference most conflictingareas encountered till the date?

• Issues with e-ticketing & automated check-in

• I n-flight business facilities

• Connectivity

• Quality of service delivery

• Unplanned Schedule

• Delays

• Time/boredom

• Others



14.Any other comments concerning your travel profile? Let usknow them!!

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Aamir-330-Corporate Travel BPO ITC

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