Highlights• Incorporated in September, 1996 in Chennai• “Floating Week Floating Resort” model• Key Activities

• Resort creation• Sales & Marketing

• Providing Holiday Experience• Member management

Facilities & Accolades• 34 resorts, 1,555 apartments & cottages as at Dec 31,2010• 121,751 Vacation Ownership (VO) members• 10 RCI Gold Crown Resorts• Among the Top 10 Vacation Ownership Companies in the World• 19 branch offices, 36 retail outlets, 126 Franchisee• Access to a total of 5,087 RCI affiliated resorts• 2 Resorts 5 Star accredited by Dept. of Tourism GOI

Flagship Product: “Family Holidays” 7 days every year for 25 years, launched in 1997Target Segment: Customer in 30 – 55 year segment

Zest: 6 days of “short breaks” every year for 10 years (2006)Target Segment: Young urban families

Mahindra Fundays: Reward and recognition solutions (2006)Target Segment: Product for Corporate segment

Mahindra Travels: Provides all the travel related services (2008)Target Segment: Existing customers & one time travellers

Mahindra homestays: Providing accommodation in private homes (2008)Target Segment: Segment of travellers who want to explore real India

Mahindra homestays: Providing Tented campsite to families (2010)Target Segment: Segment of travellers who like Adventurous activities

Season Options

Red Holiday in Purple*, White and Blue.

White Holiday in Red* and Blue.

Blue Holiday in White*.

Product components Apartment

2 Bedroom

1 Bedroom

Studio

Pricing

Flexibility

• Total payment: Membership fee + Annual Subscription fee (adjusted to inflation)

• EMI option for up to 4 year is provided for initial payment

• Facility to convert the nights available in existing plants to other plans (according to conversion chart)

• Facility to transfer / gift the nights available to member• Accumulation of points if not used in a year (Upper limit: 21)• Rescission period of 10 days

FUNCTIONAL

EMOTIONAL

SELF EXPRESSION

SOCIAL RESPONSIBILITY

Holidays & Leisure

None

Fun, Family

Happy, Zest

Existing Brand Proposition

Kano Model

Lifetime Experience

After Sales Service, Customer Satisfaction

Fun and Holidays with family

Vision:• To be Asia’s No.1 Company in Holidays & Leisure Services for the Urban Family.• To achieve this through customer centric practices that ensure Service Excellence,

Innovation & Employee Pride.

Objectives:• To become one of the top 5 VO companies by 2016• To build a cumulative member base of 350,000 in 5 years• For this, we require to triple the current beat rate of 15-20k

Long Term Strategies:• Expand to other Asian countries like Sri Lanka, Nepal, China, Japan, Malaysia, Indonesia• Expand to locations in Europe & North America

• Cater to the growing foreign tour demand of Indian customers• Matured market with High per member Revenue

• Provide end to end Hospitality Service• Expand to Hotel and Restaurant business

Proposed Short-term Strategies:1. To retain existing customer

• Improve after sales service and enhance customer satisfaction2. To grow the market share

A. Segment the tourist marketB. Create and position products to cater their needsC. Promotional activities

Tourists segmentation

Relaxation seekers

Adventure seekers

Interested in Travelling

New married couples

Foreigners visiting India

Pilgrims

Customers want to experience the rich heritage and culture of each part of India and interested in travelling, trekking and sight seeing

To let members visit each resort once during 25 years with 1 week stay

Product

• Access to pan India resorts with rich cultural experience

• Less costly than the regular 25-years product

Value

Concept

• Better demand forecast for each resort, hence better service

• Decrease congestion at most sought after resorts and help in increase usage at other resorts

Benefit for us

Customers wants to relax and get away from the crowd to achieve peace of mind

• Option for regular members to explore island for 1 week in exchange of their regular vacation

• Open to non members also

Product

Access to resorts in Andaman, Lakhsdweep, Maldvies, Mauritus

• Decrease congestion at most sought after resorts

• Adding variety to our existing portfolioBenefit for us

Value

Concept

Customers interested in exploring wildlife and seek outdoor adventure

• To let members visit each resort near wildlife sanctuaries once during 10 years with 1 week stay

• Option to explore 5 wildlife resorts & 5 non wildlife resorts

• Can be sold to non-members also

Product

Access to resorts near wildlife sanctuaries and arrangement for the safari

Value

Concept

• Can be targeted to foreigners

• Adding variety to our existing portfolioBenefit for us

Newly married couples (DINK) want to share moments with each other away from those daily boring and hectic work schedule

• 5 years packaged product for newly married, DINK. 1 week per year

• All the facilities in honeymoon package are included

Product

Experience the unforgettable shared moments

Value

Concept

• Engage the customers at an early stage of life

• Cross Selling of other products

• Large target market

• Willingness of customers to pay premium

Benefit for us

• Foreign tourists coming to India want to experience historical, cultural places

• Targeting Foreign Travel Clubs whose member come regularly to India

10 years holiday product, which the travel clubs can gift to different members each year. 1 week per year.

Product

Help foreign tourists to experience historical, cultural, tribal places and heritage of India

Value

Concept

• Satisfied customers will promote Club Mahindra brand in their countries

• Help in achieving long term objectives with opportunities to engage additional customers

Benefit for us

Existing trend of people visiting the pilgrimages like 4 dhams, Amarnath Yatra, Ajmer sharif etc.

• 5 years holiday product, 10-day package with 3 days at each resort per year

• Cluster of 3-4 pilgrim places to be covered each year, Open to non members also

Product

Access to resorts in religious places with state of the art service and arrangement to visit the pilgrimage

Value

Concept

• Unconsolidated market, huge potential for growth

• Large non member customer base

• Can be targeted to elder peopleBenefit for us

Popularity of cruise tourism is growing in Asian market

• To provide cruise experience to members by affiliating to existing cruise service provider

• By converting 1 week of resort holiday (based on a resort to cruise conversion chart)

Product

Super luxury life style experienceValue

Concept

• Members who couldn’t stay in resorts due to non availability of rooms can use this alternative

• Reduction in congestion at resorts during peak season and independent of season limitation

Benefit for us

Target GroupHigh End/Luxury BrandsIdea• Luxury brands can gift these to their customers• It will provide us direct access to High Net Worth customers and

opportunity to involve them by letting them experience our services

• Increase brand value due to association with luxury brands

• Organize events by inviting celebrities (exclusively for members)• Sense of pride of being associated with an elite club

Organizing Celebrity events

Experience Club Mahindra

• Discount on Mahindra’s other products• Transparent online booking system with availability chart and waitlist

number• Online Portal for trading points/nights with other membersClub Mahindra Points:• Flexibility of converting ‘nights’ to equivalent points• Accumulated days if more than 21 will not lapse and can be converted

to point and used in Restaurants, Theatre, Shopping, Flights• Option to use their point in Restaurants, Theatre, Shopping, Flights• Tie-up with other hotels for converting member’s points to equivalent

stay there

Resort Classification

Resorts

Facilities Based

RCI Awards Based

Demand Based

Facilities & Activities based• Family Resorts: Children playground, swimming pool, Clay arts, Spray painting etc.• Non-Family Resorts: Live entertainment, Bars, Musical Nights, Gymnasium etc.• Adventure Resorts: Trekking, Waterskiing, Scuba diving, Snorkeling, Backwater Rafting• Health Resorts: Yoga, Meditation, Ayurvedic Spa, Sauna etc.• Fun Resorts: Boating, Cycling, Sight seeing tours

RCI Awards based• Gold / Silver crown: Positioned as super luxury / luxury resorts• Other resorts: Positioned as holiday resorts

Demand based• Location based demand:• Preferred Resorts: Easily accessible, advantageous location• Secondary Resorts: Peace and Relaxation Resorts

• Events based Demand• Event Resorts: Events associated with location like Mysore Dassahera, Goa New Year• Non Event Resorts: Resorts which are not having any event/activity attraction

Financials

Forecasted Room Requirement

Year 2016 2021

Expected customer base 350000 1000000

Additional customers 225000 875000

Additional rooms required 4327 16827

Forecasted Room Assumptions:• The current room inventory of around 1500 rooms will not be sufficient to cater to

expected customer base of 350,000 in 2016 and 1 million in 2021 respectively.

• The room requirement is forecasted based on 52 week availability for members and assuming that all members are active members.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2016 2021

Additional rooms required

Additional roomsrequired

Proposed Products

10 year Product: • Tenure – 10 years• Reduced Initial Membership fee (67% of current initial charge) for “Red-2BR”• EMI option available• Annual Subscription fee • All features of 25 years product available

5 year Product: Target : Newly wed honeymoon couples • Tenure – 5 years• Reduced Initial Membership fee – (37% of current initial charge)• EMI option available• Annual Subscription fee • All features of 25 years product available

(Calculation)10 year product –Red 2BR

Instalment rate 10%

Tenure 10

Corresponding 25yr fee 7,79,988

Membership fee 5,34,288

ASF 7030

Annual increase in ASF 5.50%

Membership reduce factor 1.460

Discount rate 10%

1 2 3 4 5 6 7 8 9 10

Membership fee/year 86952 86952 86952 86952 86952 86952 86952 86952 86952 86952

ASF 7030 7416 7824 8254 8708 9187 9693 10226 10788 11382

Sum Yearly 93982 94369 94777 95207 95661 96140 96646 97179 97741 98335

PV 85438 77991 71207 65028 59398 54268 49594 45334 41452 37912

Total revenue from one customer 587627

Assumptions:• Absolute cost of construction, acquisition same as

25 year product• Expected increase in ASF yearly :5.5%• Expected discount rates :10% • With installment option : Installment rate 10%• We expect to divide the membership cost among

the newly added members

Price Chart for 5,10 year products

Season Classification

Apartment Type

Current 25 year initial

price

Our 10 year Initial Product price

Our 5 year Initial Product price

Red 2BR 779988 534287 286109Red 1BR 442405 303045 162279Red Studio 349399 239336 128163

White 2BR 519596 355920 190594White 1BR 339621 232638 124577White Studio 265702 182004 97462

Blue 2BR 379526 259973 139214Blue 1BR 223802 153303 82093Blue Studio 160311 109812 58804