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

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.

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.com a 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

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THE BUSINESSS MODEL & OPERATIONS

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Created network of offices in New Delhi, Mumbai & New York

Appointed franchise partners in US, UK, Australia & India

Operates to separate entities: MakeMyTrip - India & MakeMyTrip Inc. (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

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

Real-Time Airline Booking

Hotel Reservation System

Car Rentals Interface

CustomerMMT

Sales (CRSs)MMT

TicketingFed Ex

Customer

MakeMyTrip.com Interface

Airlines

Consolidators

Car Rentals

HotelsTour

OperatorsNet Carrots

Web Site Content

MMT Sales

MMTOperations

Offline (After Sales) InterfaceOnline Interface with MMT

Backend Operations

CUSTOMER SEGMENT & ADVERTISEMENT

Indian Market

International Traveler

Inbound Traveler

HolidayBusiness Traveler

Conference attendees

Students VFRs Others

Outbound Traveler

Domestic Traveler

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

Matrimonial portal

Pilgrimage portal

COMPETITION

MMT

Expedia

Orbit

Travelocity

Priceline

Less competition from US market

Aggressive advertising campaigns

Large customer base

CONCERNED AREAS

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

4 P’s ANALYSIS - MARKETING4 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 moneySave timeSave energyConvenientTravel easier

PRICE

• Best Price offers• No middleman involved • Customer can choose as per budget & their income• Affordable to all class of customers

Best deal AffordableQuickly available

PLACE

• Internet marketing • Online e-portal / e-business• Dedicated 24*7 customer care support• 20 offices in India & 2 international offices • Franchise across various location

No queuesAnywhereAnytimeAnyplace

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 websiteTravel agentsCommunicationAwareness

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

PHYSICAL EVIDENCE• Customer care 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

SERVICE MARKETING STRATEGY TO CREATE BRAND VALUE

• Short term travel insurance

• Offers the latest travel and health oriented informationTravel 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

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

QUESTION 1

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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.

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QUESTION 1

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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.

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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

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 Kalra could

investigate. Does MMT need to look at advertising as a revenue generator?

QUESTION 2

QUESTION 2: SOME STATISTICS

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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.

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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.

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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

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.

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

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

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

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6,000.0

1970(Census)

1980(Census)

1990(Census)

2000(Census)

2010(Census)

SINGAPORE POPULATION

Total Population ('000) Singapore Residents ('000)

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

THANK YOU!