Psychographic segmentation of mice sector

ANALYSIS OF THE PSYCHOGRAPHIC SEGMENTATION FRAMEWORK FOR

THE MICE SECTOR IN PUNE

Member Name Roll No.

Aishwarya Dev 03

Ankit Jha 12

Ashish Kumar 20

Ashwani Singh 22

Deepak Malhan 28

Itee Yadav 36

Member Name Roll No.

Mini K.V 43

Pallak Kochhar 49

Rakesh Santosh 52

Samarth Salalpuria 57

Sriju Nair 68

Vivek Sharma 72

Date Day count Schedule

January 3, 2014 Day 1 Secondary research on topic

January 4, 2014 Day 2 Discussion on topicPilot study-visit to service providers

January 5, 2014 Day 3 Pilot study-visit to service providers

January 6, 2014 Day 4 Discussion on pilot study conducted

January 7, 2014 Day 5 Frame hypothesis for researchTeams formed and locations for visit decided

January 8, 2014 Day 6 Questionnaire + Fieldwork

January 9, 2014 Day 7 Field work

January 10, 2014 Day 8 Field work+ work status meeting

January 11, 2014 Day 9 Field work

January 12, 2014 Day 10 Field work+ work status meeting

January 13, 2014 Day 11 Data entry

January 14, 2014 Day 12 Data analysis

January 15, 2014 Day 13 Report Making + Presentation

January 16, 2014 Day 14 Documentation

All team members divided in group of two for field work

Data analysis team-Vivek , Ashish, Deepak

Report team-Mini, Pallak, Itee

Presentation team-Sriju, Rakesh, Aishwarya

Documentation team-Samarth , Ashwani

RECOMMENDATIONCONCLUSIONDATA ANALYSISOBJECTIVEINTRODUCTIONAPPROACH

14 February 2015Psychographic segmentation framework for the MICE sector in Pune 2

INTRODUCTION


MICE. An acronym for Meetings,Incentives, Conferences &Exhibitions

MICE is the fastest growing segmentin the travel and tourism industrycatering to the business traveler

The inbound MICE segment is on theupward curve, growing at 15 to 20%annually

Entire national and internationalMICE meetings market all over theworld is pegged at over $270 billion

Source- The Hindu business line,,http://optimiceevents.wix.com/micetravelmart#!mice-statistics/c1x3p

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-editorial-feature/india-an-attractive-mice-destination/article2474162.ece?css=print

“Almost 350 billion dollars are spent annually on the MICE market across

the globe.” Ashwini Kakkar , Executive Vice Chairman, Mercury Travels

“In most hotels, approximately 28% to 30% of the volumes come from MICE.”-Rajan Bahadur , Regional general manager , Starwood hotels and resorts

“25% to 30% of the hotel business today is from MICE. Many hotelcompanies look at MICE in a big way when it comes to partnering ormanaging hotels. They consider location, facilities, design and otherelements. A lot of thinking goes into the planning of a successful MICEevent.”-Biswajit chakraborty, General Manager, Movenpick hotel

“Between 1.2 to 1.5 million Indians will travel only for MICE purposes.These might include going abroad, or those who will attend meetings andconferences, exhibitions within India. These 1.2 to 1.5 million people willinduce expenses of more than Rs 5,000 crore or approximately 1 to 1.3billion US dollars.”- Ashwini Kakkar


http://optimiceevents.wix.com/micetravelmart#!mice-statistics/c1x3p

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-editorial-feature/india-an-attractive-mice-destination/article2474162.ece?css=print

Objectives

To study the services provided by the various MICE sector service providers.

To study and analyze the service provider’s involvement in customer’s decision.

Hypothesis

H1 : Brand Image of a service provider is a primary criteria for selection by the clients.

H2 :Value added Services and package deals offered by the service provider acts as a major client puller.

To study and analyze the general perception of customers for opting for a specific service and a service provider.

To analyze the effect of customer care and customization on decision making of customers while finalizing a service provider.

Service provider

Customer



RESEARCH METHODOLOGY


1.Selection of topicThe topic selected was to analyse the Psychographic segmentation framework for the MICE Sector in Pune

2.Selection of sampleThe sample respondents for the study were 30 service providers including Hotels, Tours and travels agencies, educational institutes ,convention andexhibition centres. Also for client perspective,90 professionals from different companies availing MICE services in Pune were interviewed. Sample sizetaken was 120.

3.Pilot StudyTo test the feasibility of the research topic, a test questionnaire of 10 questions was prepared. This study was conducted with a sample size of 5respondents by means of stratified random sampling.

4. Data CollectionA) Primary data was collected. A copy of the sample questionnaire used has been presented as appendix.B) Secondary data was collected through the internet, journals.

5. Analysis of DataThe data collected is presented in form of tables and graphs under Results.


DATA ANALYSIS

28

16

13

7

6

6

5

5

4

0 5 10 15 20 25 30

Manufacturing

IT sector

Consultancy

Education

Pharma

Banking

Insurance

Logistics

Automobile

12

34

56

78

9

BIFURCATION OF CLIENTS

16

5

4

3

2

0 5 10 15 20

Hotel

Education institutes

convention centers

Travel agents

Event…

14

32

5

BIFURCATION OF SERVICE PROVIDER

S.no Particulars Number of respondents

1 Manufacturing 28

2 IT sector 16

3 Consultancy 13

4 Education 7

5 Pharma 6

6 Banking 6

7 Insurance 5

8 Logistics 5

9 Automobile 4

S.no Particulars Number of respondents

1 Hotel 16

4 Education institutes 5

3 Convention centres 4

2 Travel agents 3

5 Event organizer/exhibition 2

Most of the clients are from Manufacturing ,IT and Consultancy sector

Most of the Service providers covered are from Hotel and Education institutes



1 Meeting, 20, 25%

2 Confrences, 25, 31%

3 Incentives, 28, 34%

4 Exhibitio

ns, 8, 10%

NUMBER OF RESPONDENTS

1 Meeting

2 Confrences

3 Incentives

4 Exhibitions

25

11

7 5

0

5

10

15

20

25

30

BusinessCorporates

EducationalInstitutes

Political Parties Others

1 2 3 4

NUMBER OF RESPONDENTS

1 IT14%

2 Manufacturi

ng24%

3 Pharma30%

4 Educational

Institutes20%

5 Others12%

Number of Respondents (out of 30)

1 IT 2 Manufacturing

3 Pharma 4 Educational Institutes

5 Others

DATA ANALYSIS OF SERVICE PROVIDER

Sr No. ParticularsNumber of

Respondents (out of 30)

1 IT 7

2 Manufacturing 12

3 Pharma 15

4 Educational Institutes 10

5 Others 6


Respondents (out of 30)

1 Business Corporates 25

2 Educational Institutes 11

3 Political Parties 7

4 Others 5

Sr No. Particulars

Number of Respondents

(out of 30)

1 Meeting 20

2 Conferences 25

3 Incentives 28

4 Exhibitions 8

As per survey Majority of

requirements in MICE is for

Incentive and the comes conference

Most of the clients are from business

corporates

As per service provider majority

booking is for Pharma sector and

then comes manufacturing for

MICE tourism




Respondents (out of 30) %

1 Sales Team 17 38.64

2 Service Agents 13 29.55

3 Direct Calling 9 20.45

4 Company Portal 5 11.36

Particulars Sales Team Service Agents Direct Calling Company Portal

Sr No. 1 2 3 4

Series1 0 17 13 9 5

Series2 38.63636364 29.54545455 20.45454545 11.36363636

05

1015202530354045

Commonly used optionsSeries1 Series2

17

5

13

4

14

0

2

4

6

8

10

12

14

16

18

Cost effectiveness Status of thecompany

Value AddedServices

Brand of theProvider

Location

1 2 3 4 5

Number of Respondents (out of 30) Sr No. ParticularsNumber of Respondents

(out of 30)

1 Cost effectiveness 17

2 Status of the company 5

3 Value Added Services 13

4 Brand of the Provider 4

5 Location 14

As per service provider in Mice tourism , most ofthe bookings are through Company sales teamsand serving agents

clients deal with the sales team of the serviceprovider at the most followed by the serviceagents and direct calling

Very few of the clients opt for Direct calling(21%) and company portal (11%)

As per service provider cost effectiveness , locationand added service have more importance thanstatus of company and brand of the provider exceptin the case of high rating service provider.

Star companies prefer branded service provider tosustain their status .

8

47

25

18

48

36

10

27

30

5

34

32

10

2

21

13

2

0 10 20 30 40 50 60

Cost affordability

Business opportunity

Brand value

Mice facility with Lodging

Psychology of Respondent

Series4 Series3 Series2 Series1

DATA ANALYSIS OF CLIENTS

Hotels56%

Educational Institutions

16%

Convention Centres

27%

Theatres1%

Preferred Location for MICE Event

Hotels Educational Institutions Convention Centres Theatres

29 28

22 21

0

5

10

15

20

25

30

35

Costaffordability

Mice facilitywith lodging

Brand value Businessopportunity

W E I G H T E D AV E R AG E

Weights Cost affordability Weightage 1 Business opportunity Weightage 2 Brand value Weightage 3Mice facility

with lodgingWeightage 4

5 47 235 25 125 18 90 48 240

4 36 144 10 40 27 108 30 120

3 5 15 34 102 32 96 10 30

2 2 4 21 42 13 26 2 4

90 398 90 309 90 320 90 394

Average

weightage29 21 22

28

Weighted average of customer preferences to choose service provider

Hotels Educational Institutions Convention Centres Theatres

61 17 30 1

As far as MICE is concerned

Majority of clients prefer hotels

Clients rated cost affordability(weighted average of 29) as themost important parameter forselecting the service providerfollowed by mice facility andlodging(weighted average of 28).



50 40 35 3010

30 24 20 20 1515

12011090 80 80 75 70 65 60 50 50 50 45 45 40

14

50

12

020406080

100120140

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Sym

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Dec

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Average corporate tie-ups in an year

Convention Centers Educational Institute Event Organizers Hotel Travel agent

Hotels have the maximum average number(50-120) of tie ups in a year followed byconvention centre with an average of (25-50).The least are for exhibitions andeducational centres.

10%

23%

50%

7%

7% 3%

0-6 Months

6-12 Months

1 - 2 years

2 - 3 years

3 - 5 years

5 + years

Sr No. Particulars (tenure

of Tie-up)

Number of

Respondents

Percentage

1 0-6 Months 3 10

2 6-12 Months 7 23

3 1 - 2 years 15 50

4 2 - 3 years 2 7

5 3 - 5 years 2 7

6 5 + years 1 305

10152025

158

2114



Sr No. Particulars Number of Respondents (out

of 30)

1 Monthly Interactions 15

2 Gifts/ Vouchers 8

3 Emails/News Letters 21

4 Discounts/Offers 14

Loyalty programs/other special offers offeredTenure of tie ups with clients


DATA ANALYSIS OF CLIENTS

38

31

23

8

-

5

10

15

20

25

30

35

40

conferences incentives meetings exhibition

OUTSOURCED SERVICES(IN %)

Response of Services that are outsource

Service companies

outsource the most

count of services outsourced the

most by respondents

conferences 34

exhibition 7

incentives 28

meetings 21

Analysis on number of service outsourced

Yes, 73

No, 17

0

10

20

30

40

50

60

70

80

Yes No

LOYALTY PROGRAM

Do they Follow Yes No

Count 73 17

Do they follow loyalty programs

Particulars Respondents(%)

Very Important 53

Important 25

Neutral 22

Importance of Attitude/Behavior/Service of

Service Provider



53

2522

0

10

20

30

40

50

60

Very Important Important Neutral

ATTITUDE/ BEHAVIOR/ SERVICE OF SERVICE PROVIDER

It can be concluded that Clients considers various parameter basis which clients choose theservice provider.

The survey also concluded that customers consider cost effectiveness as the most importantparameter for service provider selection.

The above objective 2 proves the hypothesis 1 incorrect which states “Brand image is a primarycriteria for selection of a service provider by the clients”. Hence hypothesis 1 is rejected

The above objective 1 prove hypothesis 2 correct which states that “Value added service andpackage deals offered by service provider acts as a major client puller”. Hence hypothesis 2 isaccepted.

12

Objective 1 –”To study the services provided by the various MICE sector service providers ” and “To study and analyze the service provider’s involvement in customer’s decision.”

Objective 2 –”To Study and analyze the general perception of customers for opting for a specific service and a service provider”



RECOMMENDATIONCONCLUSIONDATA ANALYSISINTRODUCTIONOBJECTIVEAPPROACH

Importance to cost effectiveness

Beyond traditional offerings

Despite brand image being an effective parameter for attracting clients for MICE sector, it is

crucial for service providers to consider cost effectiveness in their services.

Corporate should seek new destinations for MICE trip beyond traditional destinations and

themes, thereby providing them unique experience

14 February 2015Psychographic segmentation framework for the MICE sector in Pune

Scope of substantial expansion

Pune being one of the major cities and having many site seeing places nearby can build upon attracting

more business customers for incentives. Being one of the IT hubs it can also provides enormous

business opportunities to those business travellers.

Developing Mice tourism In Pune

The Pune MICE market though, in its nascent stage leaves a lot of scope for substantial expansion. it canimprove in its infrastructure and top class facilities to conduct international conferences and meeting.

13

ANNEXURE 1

ORGANIZATION Symbiosis Centre of Education

GROUP CONTACT, DESIGNATION Mr. Sriju Nair

EVENT DATE March 2014 (dates to be intimated)

MINIMUM GUARANTEE 25 pax minimum guaranteed

FUNCTION TYPE Conference Lunch

VENUE Sovereign (subject to availability)

SEATING ARRANGEMENT To be intimated

FUNCTION TIMINGS 9am to 6pm sharp

BILLING INSTRUCTIONS 80 % advance prior the event. balance

immediate after the function

SALES PROPOSAL-Le meridian

AV REQUIREMENTS (IF REQUIRED)

LCD Projector @ Rs.3500 + tax

Collar Mike @ Rs. 1000 + tax

Cordless Mike @ Rs. 1000 + tax

Internet connection @ Rs. 5000 + tax

Laptop @ Rs. 2500 + tax

MEAL PRICES

Lunch: Buffet lunch will be charged at a rate of Rs. 875 plus taxes (as applicable) plus 5% service charge per person

Buffet lunch menu structure1 Soup2 Salads1 curd preparation1 chaat preparation2 Non Veg Main Course2 Veg Main Course1 Dal & 1 RiceAssorted Indian BreadsPapad pickle chutney2 Desserts1 ice cream

For details refer the attachment



VALS FRAMEWORK



PERCEPTUAL MAPPING

17

THANK YOU

Date post:	15-Jul-2015
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Psychographic segmentation of mice sector

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