CHAPTER-I INTRODUCTION

INTRODUCTION
Mahindra Holidays & Resorts India Ltd. Is a part of the USD 6.7 billion Mahindra Group, one of Indias leading Industrial Houses. The Group has interests in various sectors such as Automotive, Auto Components, Farm Equipment, Trade & Financial Services, Infrastructure and Information Technology. Mahindra & Mahindra has a successful track record as the Market Leader in each Sector. Mahindra Holidays & Resorts India Ltd., (MHRIL) a part of the Infrastructure Sector of the Mahindra Group, brings to the industry values such as Reliability, Trust and Customer Satisfaction. Started in 1996, the companys flagship brand Club Mahindra Holidays, today has a fast growing customer base of over 60,000 members and 15 beautiful Resorts at some of the most exotic spots in India and abroad. Mission - The Company's Mission is to enrich and enliven peoples lives by making family holidays a part of their lifestyle. Vision - The Companys Vision is to become a dominant player in the Lifetime Holiday business in Asia and eventually the world. Globe Trot with Club Mahindra A Club Mahindra membership gets you access to over 4000 resorts across over 90 countries. Holidaying abroad is made extremely economical a simple nominal exchange fee paid for in Indian rupees gets you holiday accommodation for the entire family.

Mahindra Holidays & Resorts, popular under its flagship brand 'Club Mahindra Holidays was founded in 1996 to provide holidays on a timeshare basis. Club Mahindra started with a single resort in Munnar in 1997. Presently, the company has over 30 resorts in India and abroad. The majority of these properties have been acquired by the company on a lease basis from their owners. In 2006 it was reported that the company is working towards acquiring and building additional resorts all over the world.

Club Mahindra is also an RCI affiliate. As of 2010, ten of the Club Mahindra resorts were accredited with the RCI Gold Crown award. Mahindra Holidays and Resorts India Ltd., part of the Rs. 6,000 crore [USD 1.2 billion] Mahindra Group, is a company firmly on the growth path. Club Mahindra's mission is to enrich and enliven people's lives by making family holidays a part of their lifestyle.

Fun and games, indoor and outdoor activities, designed specifically to cater to all ages and specific recreational facilities ensure that every holiday you take will be special. Resort:Goa, Munnar, Binsar, Manali, Mussoorie, Kufri, Bangkok, Corbett, Poovar.

COMPANY PROFILE
Mahindra & Resorts India Ltd., (MHRIL) is a part of the Infrastructure Sector of the Mahindra Group. Started in 1996, the companys flagship rand Club Mahindra Holidays, today has a customer base of over 100,000 members and over 30 resorts in India and abroad. Since its inception in 1996, industry analysts have been surprised about Mahindra, which many consider to be a "Jeep and Tractor company", foray into the timeshare business. The move has been part of a diversification plan of Anand Mahindra, the group vice-chairman. The company recruited Ramesh Ramanathan as CEO to kickstart operations.

It was supposed to be an innocuous briefing on a new business proposal, recalls Arun Nanda, chairman of Mahindra Holidays and Resorts India Ltd, of a meeting in the mid-1990s that he had with Anand Mahindra, vice-chairman of Mahindra and Mahindra Ltd. The agenda was to evaluate the concept of timesharea form of ownership or right to use a property, typically a holiday resortas a potential new business opportunity to diversify the groups interests from manufacturing tractors and utility vehicles.

According to Mr. Arun Nanda plans to give up all executive positions in the group from 1 April while remaining chairman of Mahindra Holidays.

Nanda took along to the meeting a bunch of clippings to make his case for a business that, in those days, made news for all the wrong reasons, such as dubious promoters and fly-by-night operators. What swayed Mahindra into green-lighting

the proposal was that no newspaper questioned the concept of timeshare as a business, per se.

Mr. Arun Nanda Chairman, Mahindra Holidays & Resorts India Limited (MHRIL). Mr. Arun Nanda holds a Degree in Law from the University of Calcutta, is a fellow member of the Institute of Chartered Accountants of India (FCA) and a fellow member of the Institute of Company Secretaries of India (FCS). Mr. Nanda has also participated in a Senior Executive Programme at the London Business School. He joined the Mahindra Group in 1973. He has held several important positions within the Group and was also the Company Secretary of Mahindra & Mahindra Limited (M&M) from 1987 to 2006.

BOARD OF DIRECTOR

Mr. A.K. Nanda, Chairman

Mr. Rajiv Sawhney, Managing Director & CEO

Mr. Cyrus J Guzder

Mr. U.Y. Phadke

Mr. Rohit Khattar

Mr. Vineet Nayyar

Mr. Sidar A Lyengar Ms. Rama Bijapurkar

REGISTERED & CORPORATE OFFICE Mahindra Towers, 17/18, 2nd Floor, Patullos Road, Chennai 600 002, Tamilnadu, India. Tele: +91 44 39881000, Fax : +91 44 30277778 Company Secretary & Compliance Officer Tele No: +91 44 39881000, Fax No: +91 44 30277778 Email Id: investors@mahindraholidays.com REGISTRAR & SHARE TRANSFER AGENT M/s. Karvy Computershare Private Limited Unit: Mahindra Holidays & Resorts India Limited Plot No.17-24, Vittalrao Nagar, Madhapur, Hyderabad 500 081, Andhra Pradesh, India. Tele no: + 91-040-23420815 to 820, Fax No.: + 91-040-23420814/57, E-mail: einward.ris@karvy.com

Incorporated on 20 September 1996, Mahindra Holidays received an infusion of Rs18 crore from the group to start its business. The venture turned out to be a rare multi-bagger; Mahindra Holidays, which raised Rs180 crore in a June initial public offering (IPO) that saw demand for 10 times the stock on offer, now commands a market value of around Rs3,000 crore. The companys flagship Club Mahindra Holidays brand has a customer base of at least 100,000 members and around two dozen resorts in India and abroad, offering holiday activities ranging from indoor games to adventure sports, water sports, camping and treks. For the group, timeshare was the second attempt at entering the hospitality sector. A 50:50 joint venture with Accor SA, Europes largest hotel company today, had proved to be short-lived. In hindsight, the decision to end the venture with Accor and cut losses was a prudent move, says Nanda, a Mahindra veteran of 36 years, who joined as an accountant in the management trainee cadre and plans to give up all executive positions in the group effective 1 April while remaining chairman of Mahindra Holidays and Resorts. The hotel business is a very capital-intensive business and its not easy to become the No. 1 player in the segment, as the capital requirement is very high, Nanda said in an interview from his fifth floor office in the red brick headquarters of the Mahindra group, a signature building in Mumbais Worli area. In the conventional hotel business, the promoter would need to invest for six-seven years before reaping any returns. It takes years to make a profit, two-three years to build the business; whereas in this business, you sell timeshares today and give the right to use 12 months later. Hence, financially, the timeshare business model requires low capital, Nanda

says. Analysts agree that the business model works, obviating the need for timeshare companies to borrow. Securitization of membership fees gives the company access to lump-sum money. As the company retains the title of the property, it provides holiday resorts services over a period of time to members. The Indian timeshare industry has posted a compounded annual growth rate of 15% since 1998, and growth is expected to accelerate, said the same report.

The timeshare concept was viewed with suspicion in the 1990s when it first took off in India. Because enlisting more and more new members is what helps the business expand, some thought it was akin to a Ponzi schemea business that pays returns to investors from their own money or money paid by later participants than from actual profit. Many fly-by-night operators entered the business and vanished with the money of customers or folded up, tarnishing its reputation further.

Running a hotel chain is vastly different from operating a timeshare business. It requires time and effort to gain a catchment of around 100,000 members, crucial for the success of the business. To attract members, a timeshare operator needs to build a chain of resorts and hire staff to service the resorts. We created destinations, Nanda says. Munnar (in Kerala), for instance, was not known, except for Tata Tea Ltds tea gardens. When we went to Munnar, the land price was 2-5% of the present real estate rates.

NO TO WESTERN MODEL Mahindra also took a conscious decision not to ape the Western model, which offers customers a fixed-time, fixed-location holiday destination, and little else by way of service.

Club Mahindra customers pay between Rs1.5 lakh and Rs7.67 lakh as a 25-year fee, the amount depending on the size of the holiday accommodationfrom studio flats to two-bedroom apartments and the season. The business model seems to be working. Edelweiss Vijay says: The company gains as it gets the membership fee upfront and uses the money to create resorts. We expect the company to generate free cash flow of Rs500 crore over 2010-12. In the quarter ended September, Mahindra Holidays posted a net profit rise of 38% to Rs28.07 crore from a year earlier on revenue of Rs119.95 crore.

Mahindra gets a lot of its businessalmost 45% of it on referrals from existing members, says Ramanathan, managing director of Mahindra Holidays. For Mahindra Holidays, only 60% of the income accrues from new member subscriptions, with the rest coming from annual fees, interest income, and services such as food and extra-curricular activities offered to customers, he says.

SIGNING UP NEW MEMBERS To be sure, scaling the business and funding the purchase of new properties is only possible by enlisting new members. We believe that the company is ill-equipped to handle any significant increase in its eligible customer base, even on planned

expansion, analysts Pritesh Chheda and Sachin Bobade of Emkay Share and Stock Brokers Ltd wrote in a 23 June research note before the companys IPO.

Mahindra Holidays and Resorts India Limited (MHRIL) offer a range of solutions to its customers with its range of products and services. It includes Club Mahindra Holidays, Zest, Club Mahindra Fundays, Mahindra Homestays and

clubmahindra.travel. Club Mahindra Holidays is engaged in the vacation ownership business. Zest, another product of the Company in the vacations ownership space entitles its members short breaks for six nights each year in studio apartments for a period of 10 years. Club Mahindra Fundays is a corporate product-based on the point-based system. Mahindra Homestays provide the customers with choice of homes across different budget categories and property types. Club Mahindra Travel is a travel integration service for Club Mahindra Holidays members to take care of their range of travel needs from accommodation to the deals on air tickets, complete holiday packages, replete with sightseeing tours and meals to documentation requirements. Club Mahindra Travel - is an effort by Mahindra Holidays and Resorts India Limited to offer a one stop online travel bazaar that offers all travel related services.

Parentage - Mahindra Holidays & Resorts India Ltd. Is a part of the USD 6.7 billion Mahindra Group, one of Indias leading Industrial Houses. The Group has interests in various sectors such as Automotive, Auto Components, Farm Equipment, Trade & Financial Services, Infrastructure and Information

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Technology. Mahindra & Mahindra has a successful track record as the Market Leader in each Sector.

Mahindra Holidays & Resorts India Ltd., (MHRIL) is a part of the Mahindra Group. Started in 1996, the companys flagship brand Club Mahindra Holidays is the largest vacation ownership brand with more than 30 beautiful Resorts at some of the most exotic spots in India and abroad. MHRIL launched its third holiday brand, Zest in the month of November 2006. Mission - The Company's Mission is to enrich and enliven peoples lives by making family holidays a part of their lifestyle. Vision - The Companys Vision is to become a dominant player in the Lifetime Holiday business in Asia and eventually the world.

Domain Expertise - Over the last decade, MHRIL have established themselves as market leaders in the family holidays business. The company have followed a two pronged strategy rapidly increasing its bouquet of resorts to provide more variety in holidaying options and enhancing its service levels to its members to provide delight at every point of interaction.

All MHRIL resorts are totally geared to cater to a variety of holiday needs and experiences in all areas of operation, from housekeeping to food & beverage to holiday activities. Creating and managing the holiday experience is a core strength.

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National Network - Club Mahindra has established a nationwide reach by setting up a network of offices. It has 19 offices spread across the country with a team of over 200 marketing and support executives who are specifically trained on service standards that Club Mahindra is benchmarking in the industry.

Activities - Club Mahindra endeavors to make holidays enjoyable. The company trains latent talent across resort to form a team of Champs, who work on creating a 'comeback value' based on 'experiences.' Activities are designed specifically to cater to all ages. The ability to anticipate customer needs and delivering them has been a major strength of the company. The range of activities span adventure sports, watersports, camping, treks, indoor family games and hobby programs for children and adults. Apart from those above, specific recreational facilities that include a fully equipped gymnasium, swimming pool, and ayurvedic center form part of Club Mahindras resorts.

Personalized Service - The service in all the resorts is professional and highly personalized. From choice of food, Holiday activities and personal touch in dealing with guests, Club Mahindra benchmarks expectations and redefines entitlements. State of the art Information Infrastructure - As a measure of providing quality customer service, Club Mahindra has established systems which enable

professionalism, efficiency and quality at all times.

Member Relations Center - A dedicated, well trained team of holiday consultants work out of the state of the art Member Relations Center at Chennai.

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A local call number provides easy and direct access to the Call Centre seven days a week.

Description Source Article

This is a logo for Club Mahindra Holidays. http://www.clubmahindraresort.in/images/Mahindra-logo.gif Club Mahindra Holidays The entire logo is used to convey the meaning intended and

Portion used avoid tarnishing or misrepresenting the intended image. The logo is of a size and resolution sufficient to maintain the Low resolution? quality intended by the company or organization, without being unnecessarily high resolution. The image is used to identify the organization Club Mahindra Holidays, a subject of public interest. The significance of the logo is to help the reader identify the organization, assure the readers that they have reached the Purpose of use right article containing critical commentary about the organization, and illustrate the organization's intended branding message in a way that words alone could not convey. Replaceable? Because it is a logo there is almost certainly no free

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equivalent. Any substitute that is not a derivative work would fail to convey the meaning intended, would tarnish or misrepresent its image, or would fail its purpose of identification or commentary. Use of the logo in the article complies with Wikipedia nonOther information free content policy, logo guidelines, and fair use under United States copyright law as described above.

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GLOBAL OVERVIEW

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The first and foremost requirement for foreign nationals to enter in the country is to get a valid travel India Visa and should possess valid passport of their country.

There are three kinds of Travel visas for tourists.

1.

The 15-day single I double entry transit visa. This Travel visa is valid for 30 days from the date of its issue.

2.

The 3-month multiple entry visa. This Travel visa is valid for 90 days from the date of first entry into India, which must be within 30 days from the date of its issue.

3.

The 6-month multiple-entry visa. This Travel visa is valid for 180 days from the date of its issue, not from the date of entry into India.

4. It is virtually impossible to get the 15-day or 3-mont visa extended. Only the 6-month tourist visa can be extended. It can be quite a bother to extend it beyond a 15-day period. Avoid it unless there is an emergency. A 15-day extension on the 6-month visa is issued by Foreigner's Regional REGISTRATION OFFICE (FRRO) 5. There is no provision of 'Visa on Arrival' in India and no fee is charged for immigration facilities at the airports. Foreign passengers should ensure that they are in possession of valid Indian Visa before they start their journey to India except nationals of Nepal and Bhutan who do not require visa to enter India and nationals of Maldives who do not require visa for entry in India for a period up to 90 days (a separate Visa regime exists for diplomatic/official passport holders).

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6. For student VISA holders: - FRRO can extend the Student Visa for duration of the course or for a maximum period of 5 years, whichever is less, to bonafide students coming to India to join well-known institutions subject to fulfillment of conditions prescribed. The visa fee for a student for the duration of the course or for a maximum period of 5 years, whichever is less, is US$ 75, but it remains a one time fee for duration of the course and all extensions within this duration are given free of cost. An additional fee of US$ 75 has to be charged for change in course/subsequent course. 7. For Research VISA holders: FRRO can extend the VISA on the accreditation of the Ministry of Human Resource Development till the completion of Research work. www.clubmahindra.com Club Mahindra Holidays provides more variety in holidaying options and high service levels to its members to provide delight at every point of interaction www.zestbreaks.com Zest is the new short break getaway holiday product from Mahindra Holidays & Resorts India Ltd.which caters short break needs of the young Indian metropolitans www.mahindrahomestays.comMahindra Homestays is an effort by Mahindra Holidays and Resorts India Limited to organize the growing Homestay industry in India and market it under a strong brand. Mahindra Homestays has set up a pan-India network of homes that delivers the real India through an enriching host- guest interaction.

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SERVICE OFFERED BY CLUB MAHINDRA

Designed on traditional Kodava architectural style with strong Ayurveda influences, the spa is situated near the remains of an ancient healing center. Svaastha at Coorg has over 9000 sq. ft. of built space.This spacious facility accommodates six indoor and two outdoor spa therapy rooms, a well-equipped gym, beauty salon, relaxation deck and Yoga & Meditation deck. For Yoga and Meditation programs, Mahindra Holidays has tied up with the Art of Living. Three new Club Mahindra resorts join RCI:

Three more resorts of Club Mahindra are now affiliated to joined RCI. The new resorts are Nature Trails in Corbett on the banks of the Kosi river in Uttarakhand; Royal Demazong in Gangtok, and Whispering Pines in Mashobra hill station, Shimla. Image: the pictures of the three resorts. Derby Green, now open:

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The landmark & historic resort is located on five and a half acres of beautifully landscaped gardens and is an exquisite combination of modern amenities & old world charm. The old colonial structure has been painstakingly refurbished and is located in the heart of Ooty town overlooking the race course. The resort has 91 Rooms, a multi cuisine restaurant- Ascot, Svaastha spa and holiday activity centre. Kumbhalgarh

Light & sound Show at Kumbhalgarh Fort: Club Mahindra Guests can now witness the historical moment in the history of Kumbhalgarh fort, thanks to the Light & Sound Show at Kumbhalgarh Fort. The show covers the history of Kumbhalgarh Fort since inception till the reign of great patriot Maharana Pratap. The fort is having 32KM long wall, which is said to be the 2nd longest wall in world after wall of China. Kumbhalgarh

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Even as Club Mahindra continues to acquire and build properties in new destinations, your existing Club Mahindra resorts have been expanded and offer brand new facilities. On your next trip, you can look forward to an even more refreshing holiday ambience and experience. The newly erected tents at Club Mahindra Fort Kumbhalgarh will offer you the most comfortable stay, while you experience how traveling royalty used to live. Enjoy a relaxing morning outside your tent at Kumbhalgarh. Ashtamudi

You will soon be able to stay in a floating cottage at Club Mahindra Backwater Retreat, Ashtamudi. Every cottage is connected to land by a bridge. Relax and enjoy the gentle movements of the cottage as it dances on the water. Surround yourself with nothing but the mysticism of the Ashtamudi Lake. A floating cottage on the Ashtamudi backwaters. Goa

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Pamper your senses in Club Mahindras innovative Svaastha spa at your Goa resort. Svaastha, The Harmony Spa - Varca Beach, Goa Coorg

Club Mahindra Kodagu Valley at Coorg has recently seen many additions. Apart from 188 apartments, the new restaurant, Green Cardamom, offers a mouthwatering range of fun dining cuisine. Relax with a drink in hand in the swank bar, Planters Club. Spend time in the brand new holiday activity centre. All this and more!

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Binsar

Have you ever spent the night in a luxury tent? Or stayed in a log hut? What about a holiday in a floating cottage? You can now holiday at the all new Manipur Villa Resort at Binsar, which offers log huts imported from Australia. From the cosy warmth of your log hut, perched high above Club Mahindra Valley Resort at Binsar, enjoy unbroken views of the majestic Himalayas. Enjoy Himalayan views from the cosy comfort of a log hut at Binsar.

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DESTINATIONS Kerala is splendid with its lush green coconut trees, the serene backwaters and the soothing Ayurvedic massages. The unique feature of Kerala is its backwaters. It has a network of lakes, canals, and rivers opening into the Arabian sea. The canals connect villages and are still used for local transport. The backwaters are selfsupporting eco-system full of aquatic life. Ashtamudi is the second largest backwaters in Kerala.

Ashtamudi means, 'eight-armed'. It is a palm-shaped extensive water body with eight prominent arms, adjoining the Kollam town. The lake is 55 kms long and is divided into eight creeks. The arms converge into a single outlet at Neendakara near Kollam, to enter the Lakshadweep sea. This estuary is the deepest among all the estuaries of Kerala with a maximum depth of 6.4 m at the confluence zone. Ashtamudi lake is famous for its magnificent landscape views. There are coconut groves and palm trees all along the banks of the lake and the uniformity is broken by the quiet town of Kollam. The Kollam Boat Club offers boats to cruise in the lake. You can enjoy a remarkable backwater tour starting from Kollam to Alappuzha. You can see the famous Chinese fishing nets beside the coconut palms, all along the banks. Kollam was the port of international spice trade. Thirty percent of this historic town is covered by Ashtamudi Lake. The eight hour trip between Kollam and Alappuzha is the longest backwater cruise in Kerala.

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RESORT ARCHITECTURE

The resort offers a total of twenty five rooms, spread across five chalets.This includes three suites. All rooms are furnished, air conditioning, tea coffee making facility, mini refrigerator and wall mounted LCD Televisions with DVD players. From every room you have a beautiful view over the garden and the lake.

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Club Mahindra Fundays People, to any organisation, are the most critical factor in ensuring success. And organisations go to great lengths to ensure their well-being. Flexible timings, relaxed working environments and more. But, even as organisations are implementing bestpractices to keep their workforce motivated, they face issues such as attrition, absenteeism and high stress levels. Stress relief is the key to ensure productivity. And nothing achieves that better than for an individual to spend some time with his/her family, doing fun things. And enjoying time away from it all, in locations far removed from the ordinary. In other words, a fun filled family holiday is one of the best ways to beat stress. But how do you give your associates a great holiday? Different people have different ideas about what makes a perfect holiday - for some, it is a few quiet days in the hills of Munnar, for others it is lazing by the beach, and for others it is an adventurous trek up the Himalayas. Planning for and making sure that everyone of your team gets the holiday they most want is both a complex and timeconsuming task. Is there an easier way to do it? Club Mahindra Fundays is simple. It is based on a world-class points system, which makes it flexible and customizable to your every need. Club Mahindra Fundays is scalable. Add points, upgrade your membership and fight inflation. All this is possible, only with a Club Mahindra fundays membership.

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Club Mahindra Fundays gives you more. 15 destinations, across India and abroad, access to over 3700 RCI affiliated resorts across the world, a one-point contact and dedicated relationship manager, travel services, and more. It helps you motivate your team, with great family holidays in 15 of the most popular holiday destinations in India and abroad. Club Mahindra helps you give your associates an enriching work experience and a great time away from it. Club Mahindra Fundays brings to you the power and flexibility of Indias largest holiday company, and helps you customise fantastic family holidays for your associates very easily.

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GROUP OF CLUB MAHINDRA

Parentage Mahindra Holidays & Resorts India Limited is part of the USD 7.1 billion multinational Mahindra Group. With over 112, 000 employees in 79 countries across the globe, the Group is also among Indias top ten Industrial Houses. The Group has interests in aerospace, aftermarket, agribusiness, automotive, components, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Company Mahindra Holidays & Resorts India Ltd., (MHRIL) is a part of the Infrastructure & Realty Sector of the Mahindra Group and brings to the industry values such as Reliability, Trust and Customer Satisfaction. Started in 1996, the companys flagship brand Club Mahindra Holidays, today has a fast growing customer base of over 100,000 members and 27 beautiful resorts at some of the most exotic locations in India and abroad. Domain Expertise Over the last decade, MHRIL has established itself as a market leader in the family holidays business. The company has followed a two pronged strategy rapidly increasing its bouquet of resorts to provide more variety in holidaying options and enhancing its service levels to its members to provide delight at every point of

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interaction.

All MHRIL resorts are totally geared to cater to a variety of holiday needs and experiences in all areas of operation, from housekeeping to food & beverage to holiday activities. Creating and managing the holiday experience is a core strength.

State of the art Information Infrastructure MHRIL has made significant investments in state of the art IT systems to streamline its operations and processes towards smooth, quick and efficient management of its substantial member base. The implementation of a CRM system has been a powerful tool to track important member information and preferences, thus providing the ability to greatly enhance the total holiday experience.

As a measure of providing quality customer service, Mahindra Holidays has established systems which enable professionalism, efficiency and quality at all times. Timeshareware - A Sales & Marketing, Reservations & Resort Operations software specially sourced from PCC Inc, Utah, USA.

HEP (Holiday Experience Profiling) A touch screen solution implemented at resorts to record online feedback from members / customers while still on holiday. This helps ensure consistent standards of service.

Globe Trot with Club Mahindra A Club Mahindra membership gets you access to over 6000+ resorts across over 90

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countries. Holidaying abroad is made extremely economical a simple nominal exchange fee paid for in Indian rupees gets you holiday accommodation for the entire family.

RCI Gold Crown Award RCI Gold Crown Award recognizes resorts that have surpassed standards of excellence in Resort Quality and Hospitality. This evaluation is based on the RCI member comment card ratings and an independent assessment of resort facilities, amenities and service. Only a small percentage of RCI affiliated resorts worldwide achieve this distinction. Club Mahindra resorts at Goa, Coorg, Munnar, Manali, Binsar Kumbhalgarh, Dharamshala, Thekkady and Naukuchiatal have received the RCI Gold Crown award. The resorts at Goa and Munnar have also received the RCI Ten Year award for consistently receiving the Gold Crown every year for ten years. Coorg achieved the Gold Crown award in its very first year of operation, 2005.

National Network Mahindra Holidays has established a nationwide reach with a network of 17 offices across the country and in the Middle East. The network is serviced by a team of over 300 marketing and support executives who are specifically trained on service standards that Mahindra Holidays is benchmarking in the industry. The accessibility to consumers has been increased significantly by Mahindra Holidays opening up new channels in the form of Direct Sales Associates across the country.

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Club Mahindra has been declared a Consumer Validated Superbrand by the Brand Council of India. Last year, the Brand Council declared Mahindra Holidays a Business Superbrand. ACTIVITIES CARRIED OUT BY MHRIL ARE AS UNDER (ENVIRONMENT) MHRIL, Munnar Constructed bus shelter at Chinnakanal, Munnar. This bus shelter helps to provide shelter to the commuters, especially during heavy rains and hot summers. This was inaugurated and dedicated to the villagers by our MD, Mr.Ramesh Ramanathan in a function held on 2nd May 2009. Mr. Albi, Panchayat President graced the occasion. Mr. Ramanathan and Mr. Albi addressed the gathering on this occasion. Beneficiaries Local Villagers.

(HEALTH)

MHRIL,

Munnar

Lab

equipments

sponsored to the Primary Health Centre at Chinnakanal, Munnar. This contribution has improved facilities in the lab and has also led medical practitioners to provide better treatment for out patients. The inauguration was done on 2nd May 2009 in the hands our MD, Mr.Ramesh Ramanathan. Beneficiaries Local Villagers.

(HEALTH) MHRIL, Corporate Office Distributed crockery & indoor games (dining plates, steel plates, soup bowls, coffee cups, saucers and paper games) to Sevalaya

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 A Home for Old Aged and Destitute Children, Chennai. This was a little contribution from our end for 100% pass results from class 10th students of Selvaya. This event took place on 4th June 2009. Beneficiaries Inmates of Sevalaya.

(HEALTH) MHRIL, Corporate Office Blood Donation Camp was conducted at Corporate Office (CO) in association with Jeevan Blood Bank, Chennai. 52 Employees donated blood during this camp. This event took place on 7th May 2009. Beneficiaries General Public through Jeevan Blood Bank (52 units of blood).

(EDUCATION) MHRIL, Coorg Awareness session on Global Warming was conducted for the students of class IX and X of Kodagu Vidyalaya. Global Warming issues were showcased by screening Al Gores Movie, An Inconvenient Truth. The impact of the movie was such that both students and children stated that they would contribute to the environment in possible ways and means. This event took place on 26th Jun 2009. Beneficiaries Students and teachers of class IX and X (100 students and 7 teachers).

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(ENVIRONMENT)

MHRIL,

Ashtamudi

Donated

paper bag making machine to KUDUMBASHREE, a self help group of ladies. This is in continuation towards environment drive Say No to plastics. The first phase in this project was making paper bags using old & used news papers (supplied by us) and sellin the same back at nominal rates. In the second phase more125 Kudumbasrees units will involve in making and supplying paper bags to the local shops and house holds. This event took place on 03rd July 2009. Beneficiaries Employment to self help groups and community.

(EDUCATION) MHRIL, Corporate Office Distributed 11,750 English-English-Tamil Dictionary to students of 27 corporation schools across Chennai. This initiative was taken to help the school children to improve their vocabulary and communication skills. This even took place on 22nd July 2009 at Corporation Boys Higher Secondary School, Nungambakkam. The Chief Guest of this event was District Education Officer (DEO) who gave a speech stressing on the importance of knowing English words and able to speak fluently. Beneficiaries 11,750 government school children.

(ENVIRONMENT) MHRIL, Coorg An impactful experience for both the employees(MHRIL) as well as guests staying at the resort MHRIL by being a part of

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road cleaning exercise conducted by the Esops Team Coorg. The cleaning was done for the road adjacent to the resort. Both Employees and the guests actively participated in this initiative. Seeing the enthusiasm local public also joined us in this initiative. Beneficiaries Local Public.

(HEALTH) MHRIL, Corporate Office Awareness talk on preventive cardiac care was conducted by Dr. Rakesh Gopal, Consultant Cardiologist from Apollo Hospitals, Chennai on 6th August 2009. Dr.Gopal spoke on the illeffects of neglecting such problems. The session was interactive and went for about 2 hours. Beneficiaries CO Employees & Associates.

(HEALTH) MHRIL, Pondicherry Donated water tanker (Capacity - 6000 Lts) to Bahour Commune Panchayat which is near to the resort. The water tanker will help smooth supply of water from one location to another. The event took place on 22nd Jun 2009 which was graced by the presence of 13 councillors, 6 commune Panchayat staffs and commissioner. Beneficiaries Local Villagers.

(ENVIRONMENT)

MHRIL,

Corporate

Office

Distribution of Neem tree seeds to the employees of corporate office on Independence Day. The purpose of

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this initiative was to create awareness on the importance of planting tree. About 500 Neem tree seeds packets were collected by the employees. Beneficiaries Employees and Associates.

(EDUCATION) MHRIL, Coorg Drawing competition was conducted at four various government schools for students on 12th Aug 2009. MHRIL not only organized this activity but also provided students with drawing materials. Two themes were selected, (1) Environment and Conservation of saving environment and (2) importance of saving nature. These two themes were well understood by the school children and the same was beautifully portrayed in their drawing. School children enjoyed being a part of this competition with a message being conveyed to them towards sustaining our environment. Beneficiaries Students.

(ENVIRONMENT) MHRIL, Thekkady Iron Grill Net was sponsored to the local villagers in order to cover the well. The absence of the net has led contamination of well water which was used by majority of the villagers. This net will help them avoid contamination of well water. This was dedicated to villagers as an Independence Day gift, in presence of Panchayat President and other local authorities. The event took place on 18th Aug 2009. The function was attended by Panchayat President, Vice President,

35

Ward member, Block Panchayat Member etc. Local Panchayat officials extended all support for the activity. Beneficiaries Local Villagers.

(EDUCATION)

MHRIL,

Binsar

desktop

computer, computer table and a UPS were sponsored to Sri Ram School, Binsar. These have helped the schools to pave way for computer-aided learning. These are utilized for both academic and official use at the schools. The hand over session took place on 22nd Aug 20009 by Mr. Pradeep Tamta (Member of Parliament) and Mr. Rajender Barakoti (Member of Zila Panchyat Almora) to the head master of the school. Beneficiaries School children and school management.

(HEALTH) MHRIL, Delhi Blood Donation Camp was conducted at Delhi office in association with Lion Blood Bank. The camp was organized in a well structured manner. Donors included employees from both MHRIL and M&M. This event took place on 22nd Aug 2009. Beneficiaries Public through Lion Blood Bank (45 units of blood).

(EDUCATION) MHRIL, Coorg Awareness session on Global Warming was conducted for the students of St. Joseph Convent School, Madikeri. Global Warming

36

issues were showcased by screening Al Gores Movie, An Inconvenient Truth. The impact of the movie was such that both students and children stated that they would contribute to the environment in possible ways and means. This event took place on 31st Aug 2009. Beneficiaries Students and teachers of class IX and X (600 students).

(EDUCATION)

MHRIL,

Binsar

desktop

computer, computer table, UPS and old durries were sponsored to Anoop Shishu School, Binsar. These have helped the schools to pave way for computeraided learning. These are utilized for both academic and official use at the schools. The hand over session took place on 22nd Sep 2009 by Mrs. Basanti Devi (Village Pradhan) to the head master of the school. Beneficiaries School children and management.

(HEALTH) MHRIL, Corporate Office Sponsored Defibrillator to the Institute of Child Health & Govt Hospital children (ICH), Egmore, Chennai. The ICH is a premier, multi specialty pediatric referral hospital (largest of its kind in Asia) of the Government of Tamil Nadu that caters to the health needs of children of Tamil Nadu and neighboring states. This unit will serve to stabilize critical / emergency cases. The handover session took place at corporate office in the presence of Dr.Sardha Suresh Director (ICH, Egmore)

37

and Dr Sailakshmi Ekam oneness. This event took place on 12th Oct 2009. Beneficiaries Under Privileged Children.

(HEALTH) MHRIL, Ashtamudi Medical Camp was conducted at Guhandapuram Higher secondary School, Chavara South, Ashtamudi. Class rooms of this school were used for the checkup.District Medical Officers bought the medicines. Team of doctors comprising of General Physician, gynaecologist, paediatrician, eye specialist, cancer specialist were present. A team from district blood bank was also available for blood donation drive. 28 volunteers donated blood. This event took place on 26th Oct 2009. Beneficiaries General Public through District Blood Bank (28 units of blood).

(HEALTH) MHRIL, Ashtamudi Distribution of sweaters and stationary to the students of

Government Primary School, Hodal sidhpur. This activity was inaugurated by Local Panchaya Pradhan on 28th Oct 2009. Students belong to below poverty line families thereby provision of sweaters will keep then warm during peak winter season. The same has also been covered in the local news paper Jaagran City. Beneficiaries School children.

38

(HEALTH) MHRIL, Manali Blood Donation Camp was conducted at Community Health Centre, Manali. This came was inaugurated in the presence of local MLA. 54 of them came forward to donate blood during this camp. This event took place on 8th Oct 2009. Beneficiaries General Public (54 units of blood).

(HEALTH)

MHRIL,

Cochin

Donated

Cots,

Mattresses & Cupboards to Grama Seva Samithi - a charitable trust started in 1980.It is dedicated to the welfare of the needy and deprived. This event took place on 9th Nov 2009. There was media coverage on this activity. The event turned out to be a very emotional one for both the volunteers as well as the inmates who were very happy to be getting so much attention.Beneficiaries Inmates of Bhakta Soordas Swasraya Kendram-Madhavam, Sreemoolanagram, Aluva.

(EDUCATION) MHRIL, Corporate Entertainment program was conducted for the special children (physically challenged) on the occasion of World Disability day on 14th November 2009. Dignitaries from the field of medicine and arts were present. Mr Gopal and his son Jr Gopal performed Magic show which was thoroughly enjoyed by the children. Team of 5

39

school children performed a music show. Sweets were distributed to the children. Beneficiaries Special children (Physically challenged) across Chennai

(HEALTH) MHRIL, Corporate Sponsored Solar Water Heating system to the inmates of ANANDAM A home for senior citizens on 14th November 2009. Wheel chair was also donated to the inmate. This wheel chair was sponsored by one of our employee, Sumana Sriprasad. Lunch for the day was sponsored by us and volunteers also had lunch with the inmates. The handover ceremony took place at the old age home. Beneficiaries inmates of ANANDAM.

(HEALTH) MHRIL, Shimla Blood Donation Camp was conducted at Community Health Centre, Mashobra, Shimla. Doctors from Kamala Nehru Hospital for Mother and Child were invited for this camp. The donor was provided with refreshments and lunch. This event took place on 2nd Dec 2009. Beneficiaries General Public (40 units of blood).

(HEALTH) MHRIL, Coorg Donated a tricycle to Mr Nanaiah, a physically challenged person in the presence of Brig. Ravi Mehta, a Retired Army Officer from Delhi. The donation was made on 1st

40

Dec 2009. Nanaiah has immensely benefited by this gesture. Earlier we used to see him crawling on the road. Now he is more confident and is seen cycling to do his own chores. He has also become more independent which earlier he was not. This is the outcome seen just in a matter of a month a better evaluation could be done given some more time.

(HEALTH)

MHRIL,

Naukuchiatal

Blood

Donation Camp was conducted at Club Mahindra Dancing Waters, Naukuchiatal. Doctors from

government hospital, Haldwani were invited for this camp. Senior pathologist Dr.Bhardwaj addressed the employees and encouraged employees for the same. This event took place on 12th Dec 2009 and the same was published in local newspaper named Amar Ujaala dated 13th Dec 2009. Beneficiaries General Public (8 Units of Blood).

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CHAPTER-II LITERATURE REVIEW

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LITERATURE REVIEW
Global travel increased by 6% in 2007 compared with 2006, crossing tourism forecasts for the fourth year in succession. Among the various regions, the Middle East registered the highest growth in arrival of international tourists with 46 million tourists compared with 41 million in 2006, a growth of 12.2%.The opening up of the aviation industry in India has resulted in exciting opportunities for the hotel industry. The share of Travel & Tourism industry to the global GDP was 6.48% in the year 2007 with value of US$ 3,493.19 billion and industry demand contributed to 13.21% of global GDP in 2007. Middle East was the fastest-growing region in terms of arrivals of international tourists during 2007. According to the report by World Travel and Tourism Council, India currently ranks 18th in business travel and will be among the top 5 nations by the end of 2010. ASSOCHAM has projected that Medical Tourism is likely to become the leading foreign exchange earner for India. India is now emerging as one of the hot destinations for medical tourism after Singapore, Thailand, Hong Kong, Malaysia, Philippines, and Columbia.

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 A touch of tenderness, a helping hand, a welcoming visage... the Indian hospitality sector is certainly the most apt replication of the belief ATITHI DEVO BHAVA'. Good quality products and services at affordable prices should be the USP of any successful venture - and hotels in the country boast of exactly this. According to the world travel and tourism council, the growth in the hospitality industry is pegged at 15% every year, and with 2, 00,000 rooms (both luxury and budget) needed in the country, the segment is poised for a stupendous growth.

BRAND POSITIONING PROCESS Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs.

Generally, the brand positioning process involves: 1. Identifying the business's direct competition. 2. Understanding how each competitor is positioning their business today. 3. Documenting the provider's own positioning as it exists today. 4. Comparing the company's positioning to its competitors' to identify viable areas for differentiation 5. Developing a distinctive, differentiating and value-based brand positioning statement, key messages and customer value propositions.

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PRODUCT POSITIONING PROCESS Generally, the product positioning process involves: 1. Defining the market in which the product or brand will compete 2. Identifying the attributes that define the product 'space' 3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4. Determine each product's share of mind 5. Determine each product's current location in the product space 6. Determine the target market's preferred combination of attributes 7. Examine the fit between:
o o

The position of your product The position of the ideal vector

8. Interest and started a conversation, you'll know you're on the right track.

POSITIONING CONCEPTS More generally, there are three types of positioning concepts: 1. Functional positions
o o o

Solve problems Provide benefits to customers Get favorable perception by investors and lenders

2. Symbolic positions
o o o

Self-image enhancement Ego identification Belongingness and social meaningfulness

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Affective fulfillment

3. Experiential positions
o o

Provide sensory stimulation Provide cognitive stimulation

REPOSITIONING A COMPANY In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather than just a product line or brand. When Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks, for example, the expectations of investors, employees, clients and regulators all needed to shift, and each company needed to influence how these perceptions changed. Doing so involves repositioning the entire firm.

Some customers expect a lot from salespeople, some expect very little, and some don't know what to expect. Frequently, customers expect salespeople merely to be suppliers of products rather than resources with solutions to common business problems - solutions that can save time, make them money, increase productivity, and retain customers. VALUE FOCUSED Customer expectations may also be based on a salesperson's overall value as a supplier and partner. For example, printing salespeople supplying design and formatting expertise at no charge may save clients hundreds of dollars per order. While charging more for printing services, they provide savings on design and formatting that far offset the higher price. In addition, the salespeople help customers with their corporate image, thus adding more value.

46

A building supply company regularly holds a customer business seminar to identify business issues and discuss methods for meeting objectives. Attendees report that this business forum provides them with an opportunity to share ideas with peers they wouldn't normally encounter. The building supply firm actually documents a sales increase with these accounts immediately following the seminars. BRAND AWARENESS Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it.

BRAND PROMISE Brand promise is what a particular brand stands for. It has its roots from the identity that it gains over a period of time. Usually, brand promise is an attribute common to ' Parent ' brands. Herein, the brand may broadly stand for Quality, Performance, Trust, or False promises. However, the extensions, or the brands under the parent brand umbrella, may stand individually for a particular trait which it has delivered over the years, for example, 'the best sparkling teeth', or 'the trusted bank to bank with for centuries', et al.

47

GLOBAL BRAND A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and create strong enduring relationships with consumers across countries and cultures. They are brands sold in international markets. Examples of global brands include Facebook, Apple, Coca-Cola, McDonald's, Mastercard, Gap, Sony and Nike. These brands are used to sell the same product across multiple markets and could be considered successful to the extent that the associated products are easily recognizable by the diverse set of consumers.

BENEFITS OF GLOBAL BRANDING In addition to taking advantage of the outstanding growth opportunities, the following drives the increasing interest in taking brands global:

Economies of scale (production and distribution) Lower marketing costs Laying the groundwork for future extensions worldwide Maintaining consistent brand imagery Quicker identification and integration of innovations. Preempting international competitors from entering domestic markets or locking you out of other geographic markets

Increasing international media reach is an enabler Increases in international business and tourism are also enablers

GLOBAL BRAND VARIABLES The following elements may differ from country to country:

Corporate slogan

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Products and services Product names Product features Positioning Marketing mixes

These differences will depend upon:

Language differences Different styles of communication Other cultural differences Differences in category and brand development. Different consumption patterns. Different competitive sets and marketplace conditions. Different legal and regulatory environments. Different national approaches to marketing.

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BRAND PROMOTIONAL STRATEGIES

(i) Memorable Brand Name and Logo

The vast majority of brand names are short and memorable names, which are easy to remember. They can often be shortened versions of the full company name, or something completely new aimed at selling a particular product or service.

(ii) Image of Size A strong brand will project an image of a large and established business to your potential customers. People usually associate branding with larger businesses that have the money to spend on advertising and promotion. If you can create effective branding, then it can make your business appear to be much bigger than it really is.

(ii) Professional Looking Image The overall image of your business is a crucial part of creating strong branding. As branding creates the impression of a larger business, your image should reflect that of an established company. All business stationary needs to carry your businesses brand name or logo. There is no point creating a brand if you do not use it, although this does not mean you need to make it excessively large, sometimes subtlety works just as well. Creating a brand is not just about the name and logo; can someone look at your products/brochure/store and know that it is for your business without seeing a name?

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(iii) Exposure Even the best designed branding will be of no benefit if people are not exposed to it. There are four main ways in which people become exposed to and remember a brand:

Advertising Advertising in magazines, newspapers, trade journals, or even on the radio or television will expose your brand to a large number of people in a short space of time. There is no better way of exposing your brand, but substantial advertising is very expensive, particularly in the long term. Advertising planning should always take into account the type of business you are in, and who you are aiming to sell or expose your brand to.

PUBLIC RELATIONS (PR)

Public Relations exposure can inform a wide range of people about your brand through trustworthy sources such as newspapers. A news story that references your brand is given to the media outlets, which then decide whether or not to run the story. PR is not as expensive as advertising, but results can vary considerably depending on the type of business you run, the availability of stories, and even what is going on in the news that week. If you choose an external company, you must always be sure of their ability and experience, otherwise you are effectively throwing money away. If you choose to carry out PR internally, it costs next to nothing, but the results will often be poor without some training and knowledge.

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Word Of Mouth

Highly satisfied customers will generally tell other people about your business, this can be used to help spread your brand. Be careful however, as unsatisfied customers will usually tell more people about their experiences than satisfied customers will. Word of mouth exposure is free, and helps to lodge your brand name and image in your potential customers minds. Advertising and promotions can also encourage word of mouth; many businesses run competitions or teaser advertising that often makes people talk about the advert. Discounts given when an existing customer introduces a friend are another common way of increasing word of mouth exposure.

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PORTERS FIVE FORCES MODEL

Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.

1. BARGAINING POWER OF SUPPLIERS The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. The high class hotels are operating by few hotel chains like-TAJ, EIH, ITC&THE LEELA PALACE so they have a control over the industry. There are no substitutes for spas and five star hotels. The hotels customers are fragmented, so they have to reduce their bargaining power to attract the customers.

53

 The Taj, ITC& Oberoi are having various rates and tariffs because they are having their own brand image. The hotel chains are operating different services like Spas, Boatels, Resorts, City Centers, Heritage HOTELS, etc.'

2. BARGAINING POWER OF CUSTOMERS Similarly, the bargaining power of customers determines how much customers can impose pressure on margins and volumes. The hotel industry is one of the most invested in its fixed assets. So they are trying to recover their amount quickly. The suppliers are providing better information about them to attract the customers. Here the buyers are highly informed. If the hotel price changes are moderate, the Customers have low margins and are price sensitive. Some unseasoned timings the hotels are offering discounts and incentives to reduce the bargaining power of buyers.

3. THREAT OF NEW ENTRANTS The competition in an industry will be the higher; the easier it is for other companies to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry.

54

 The foreign hotel chains are tied up with Indian hotels to reduce the initial cost and using the latters brand name. Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects the new entrants. Access to raw materials and Distribution channels are controlled by Existing players like TAJ, ITC, and LEELA PALACE. The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%.

4. THREAT OF SUBSTITUTES A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players. This category also relates to complementary products. Brand loyalty of customers (TAJ, ITC, LEELA PALACE, etc,) is dominating the substitutes. The hotel relationship with customer and costs also the reasons to switching to substitutes.

55

 The price variation of same class hotel services from various brands is one of the reasons to choose a substitute. The present demand and supply of hotel rooms is one of the reasons to choose a substitute. More fixed cost and switching costs affects the business.

5. COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in pressure on prices, margins, and hence, on profitability for every single company in the industry. The top competitors in hotel industry are having the same services like five star, spas, boatels and motels, heritage hotels and palaces. The healthy competition among the all players is helping to increase the industry growth. Intense in metro cities, slowly picking up in secondary cities.

MARKETING We can distinguish between a social and a managerial definition for marketing. According to a social definition, marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. As a managerial definition, marketing has often been described as the art of selling products. But

56

Peter Drucker, a leading management theorist, says that the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Coping with exchange processes-part of this definition is calls for a considerable amount of work and skill. We see marketing management as the art and science of applying core marketing concepts to choose target markets and get, keep, and grow customers through creating, delivering, and communicating superior customer value. Core Marketing Concepts Marketing can be further understood by defining the core concepts applied by marketing managers. Target Markets and Segmentation A marketer can rarely satisfy everyone in a market. Not everyone likes the same soft drink, automobile, college, and movie. Therefore, marketers start with market segmentation. They identify and profile distinct groups of buyers who might prefer or require varying products and marketing mixes. Market segments can be identified by examining demographic, psychographic, and behavioural differences among buyers. The firm then decides which segments present the greatest opportunity-those needs the firm can meet in a superior fashion. For each chosen

57

target market, the firm develops a market offering. The offering is positioned in the minds of the target buyers as delivering some central benefit(s). Traditionally, a market was a physical place where buyers and sellers gathered to exchange goods. Now marketers view the sellers as the industry and the buyers as the market. The sellers send goods and services and communications to the market; in return they receive money and information. MARKETING MIX The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion.

PRICE There are many ways to price a product. PLACE Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which

58

goods and/or services are moved from the manufacturer/ service provider to the user or consumer.

PRODUCT

For many a product is simply the tangible, physical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a room in a hotel, is the product more complex than you first thought?

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives.

PROMOTION Another one of the 4P's is promotion. This includes all of the tools available to the marketer for 'marketing communication'. As with Neil H.Borden's marketing mix, marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different.

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PHYSICAL EVIDENCE

Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues.

PEOPLE People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it.

PROCESS Process is another element of the extended marketing mix, or 7P's.There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example - to achieve a 30% market share a company implements a marketing planning process.

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HOSPITALITY MARKETING 2010

Marketing success in decade 2010 will depend not only on the brand and its promises but also on the customer experience and his/ her influence on others. The article outlines strategies for marketers to influence the purchase decision of customer.

As the year 2010 progresses, the debate on Marketing Spend vs. Incremental Revenue - an age old one - gains prominence given the state of the economic flux wherein each dollar spent is analyzed, re-negotiated and then minimized. Marketing Strategies and related spends in 2010 are now even under more scrutiny and justifiably so!

Given that 2010 is the year of slashed budgets, overwhelming shortage of skilled human resources, and a renewed focus on increasing ARR and yield, the question for marketing resources of Indian Hospitality is how to continue to build their brand and market their differentiated products successfully as compared to that in the last decade? The answer may well be in an analysis of the trends and changing perceptions of customers in the last decade vs. that of the upcoming one.

Let's start with the big 'B' - Branding. In this past decade, Brand was foremost in the minds of the customers when making a purchase decision. Previously the Brand was created internally by the custodians of the brand - the internal stakeholders - and was a rigid entity that was conceptualized to reflect what they, the custodians wanted their product to reflect. For the most part, branding was a

61

one-way stream of communication that worked for the customers of the last decade. This resulted in a decade of strong brands that effectively harnessed the power of branding. Today, Brand 2010 needs to be flexible within means; it needs to be based on the needs and wants of the customer of the coming decade - the external stakeholders - who will evolve to be the real custodians of the Brand. In the past decade, Brands were adept at communicating high flying Brand Promises but relatively inept at delivering them. Brand Promises in 2010 will have to be realistic, experience led, sustainable and more easily comprehended by the customer. It will be the actual delivery of these Brand Promises that will influence the purchase decision of 2010.

Customer 2010 will most definitely need to have considerable power in the marketing process of the coming decade. From brand strategy, brand promises, delivery of brand experience to the purchase decision itself, it will be the customer experience and his/ her influence on others that will ensure success of a marketing initiative. How then would marketers in the coming decade be successful with such limited control? The Marketer 2010 needs to ensure that customer brand experience delivers on each marketing communication it generates. Once ensured, this marketing communication needs to be disseminated as sequential communication across various media. This will not only strengthen brand recall but will also provide the customer with the confidence to make the purchase decision. Marketing 2010, therefore, will not be a one shot win all initiative. It will be a series of experience-led communications using a mix of marketing media that will encourage the purchase decision. The strong foundation of the marketing

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communication itself will take result in word of mouth/ or should I say word of Web 2.0 marketing to ensure marketing success!

Hospitality marketing in this decade will need to be many steps ahead. Moreover, consistent delivery of a superior and differentiated product experience that offers a greater perceived value will result in the acquisition and retention of customers of the coming decade. The need to consistently deliver on Brand promises will be further underlined by the ability of customers to reveal instantly online.

It is intrinsic for successful marketers of the coming decade to:

Deliver consistently on brand promises and customer experiences Listen and interact regularly with customers to create, enhance, and maintain customer loyalty

Create a unique selling proposition for services that cater to customer preferences to build and retain brand loyalty

To create marketing communications that are based on product fact points and delivery of promised brand experiences

Use sequential communication across a mix of marketing media Influence possible customers through existing customers. Word of mouth marketing, which has been redefined by the onset of the new wave of social media and Web 2.0 initiatives, should be harnessed to the maximum.

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PROMOTIONAL STRATEGIES 8Ps OF SERVICES MARKETING:

Product elements - The core and periphery service elements at the centre of the company's marketing strategy; Place and Time - Delivering product elements to customers can be done physically and/or electronically, depending upon the service. Speed and convenience are essential to the customer and are important value-adds; Price and Other User Outlays - Pricing is only a part of what customers may part with when purchasing a service; one must also consider time and convenience; Promotion and Education - Speaks for itself, but the marketer must make sure communications not only provide information, but also persuade the customer of the service's relevance to the customer's particular 'problem'; Process - The means by which the firm delivers product elements; Physical Environment - The appearance of the place where the services are delivered may have a significant impact upon whether the service was satisfactory; People - front-line staff will have a direct impact on perceptions; Productivity and Quality - Improving productivity is a requisite in cost management; but quality, as defined by the customer, is essential for a service to differentiate itself from other providers.

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THEORY OF THE GAPS MODEL IN SERVICE MARKETING

The gaps model of service quality was first developed by a group of authors, Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in 1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service such as executive interviews and focus groups in four different service businesses the authors proposed a conceptual model of service quality indicating that consumers perception toward a service quality depends on the four gaps existing in organization consumer environments. They further developed in-depth measurement scales for service quality in a later year (Parasuraman, Zeithaml, Berry, 1988). Theory of the Gaps Model Perceived service quality can be defined as, according to the model, the difference between consumers expectation and perceptions which eventually depends on the size and the direction of the four gaps concerning the delivery of service quality on the companys side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985). Customer Gap = f (Gap 1, Gap 2, Gap 3, Gap 4) The magnitude and the direction of each gap will affect the service quality. For instance, Gap 3 will be favourable if the delivery of a service exceeds the standards of service required by the organization, and it will be unfavourable when the specifications of the service delivered are not met

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: The Integrated Gaps Model of Service Quality The key points for each gap can be summarized as follows: Customer gap: The difference between customer expectations and perceptions the service quality gap. Gap 1: The difference between what customers expected and what management perceived about the expectation of customers. Gap 2: The difference between managements perceptions of customer expectations and the translation of those perceptions into service quality specifications and designs.

66

Gap 3:

The difference between specifications or standards of service quality and the actual service delivered to customers.

Gap 4:

The difference between the service delivered to customers and the promise of the firm to customers about its service quality

APPLICATIONS OF THE GAPS MODEL First of all the model clearly determines the two different types of gaps in service marketing, namely the customer gap and the provider gaps. The latter is considered as internal gaps within a service firm. This model really views the services as a structured, integrated model which connects external customers to internal services between the different functions in a service organization. Important applications of the model are as follows:

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THE 10 DETERMINANTS OF SERVICE QUALITY

1. The gaps model of service quality gives insights and propositions regarding customers perceptions of service quality. 2. Customers always use 10 dimensions to form the expectation and perceptions of service quality (Fig. 2). 3. The model helps predict, generate and identify key factors that cause the gap to be unfavourable to the service firm in meeting customer expectations. The model provides a conceptual framework for academic and business researchers to study the service quality in marketing. KEY FACTORS LEADING TO THE CUSTOMER GAP Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality inadequate use of market research Lack of upward communication - Lack of interaction between management and customers insufficient communication between contact employees and managers Too many layers between contact personnel and top management Insufficient relationship focus - Lack of market segmentation focus on transactions rather than relationships focus on new customers rather than relationship customers Inadequate service recovery

Lack of encouragement to listen to customer complaints

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Failure to make amends when things go wrong No appropriate recovery mechanisms in place for service failures Key Factors Leading to Provider Gap 2 Poor Service Design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning

Absence of customer-driven standards Lack of customer-driven service standards Absence of process management to focus on customer requirements Absence of formal process for setting service quality goals

Inappropriate physical evidence and service scape Failure to develop tangibles in line with customer expectations Service scape design that does not meet customer and employee needs Inadequate maintenance and updating of the service scape

Key Factors Leading to Provider Gap 3 Deficiencies in human resource policies Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit

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Inappropriate evaluation and compensation systems Lack of empowerment, perceived control, and teamwork Customers who do not fulfill roles Customers who lack knowledge of their roles and responsibilities Customers who negatively impact each other Problems with service intermediaries Channel conflict over objectives and performance Difficulty controlling quality and consistency Tension between empowerment and control Failure to match supply and demand Failure to smooth peaks and valleys of demand Inappropriate customer mix Overreliance on price to smooth demand

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KEY FACTORS LEADING TO PROVIDER GAP 4

Lack of integrated services marketing communications Tendency to view each external communication as independent Not including interactive marketing in communications plan Absence of strong internal marketing program Ineffective management of customer expectations Absence of customer expectation management through all forms of communication Lack of adequate education for customers Overpromising Overpromising in advertising Overpromising in personal selling Overpromising through physical evidence cues Inadequate horizontal communications Insufficient communication between sales and operations Insufficient communication between advertising and operations Differences in policies and procedures across branches or unit

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SALES PROMOTION POLICIES ADOPTED BY CLUB MAHINDRA

Sales promotion can be classified based on the primary target audience to whom the promotion is directed. These include:

Consumer Market Directed - Possibly the most well-known methods of sales promotion are those intended to appeal to the final consumer. Consumers are exposed to sales promotions nearly everyday, and as discussed later, many buyers are conditioned to look for sales promotions prior to making purchase decisions.

Trade Market Directed Marketers use sales promotions to target all customers including partners within their channel of distribution. Trade promotions are initially used to entice channel members to carry a marketers products and, once products are stocked, marketers utilize promotions to strengthen the channel relationship.

Business-to-Business Market Directed A small, but important, sub-set of sales promotions are targeted to the business-to-business market.

TACTICS: Tactic 1: Publicity stunts Stunt is a word with negative connotations for restaurant owners, but I wanted to use a word that conjured up images that are different than traditional press relations efforts. Sending a standard press release about a new menu may result in a small write-up. To cut through the clutter and generate extensive exposure, you need a newsworthy angle. Something like a celebrity chef cook-off, really unique

72

contest or other major event. Think beyond typical events like golf tournaments and simple fundraisers. Challenge your staff or marketing firm to think what youd have to do to make it into the Guinness Book of World Records. Challenge them to think much bigger and come up with ideas that tie in to what your club stands for but also have potential for national exposure. If you create events that have only local appeal, youll be limited with your media exposure potential and may not even make the local paper. If you think much larger, you wont have to worry about getting coverage. A well-constructed publicity stunt can be worth its weight in gold in terms of positive exposure for your restaurant. And everybody wants to be associated with a winner.

TACTIC 2: PUBLIC RELATIONS - Public relations has been called advertising that you dont have to pay for. If you have a successful public and media relations program, youll get increased exposure and prestige without spending a fortune. For this to work; though, youll need to create and publicize newsworthy stories. Hiring a new chef isnt always enough to garner the kind of attention you deserve. Create other angles that are unique and make your restaurant stand out. Also, review your restaurants marketing and advertising expenses over the last three years. Then determine the percentage that was spent on traditional advertising compared to public relations. Its worthwhile to spend 15-30 percent of your budget on a solid public relations program.

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If that firm doesnt seem genuinely curious and interested in your restaurant and what it has to offer, itll have a hard time creating interest with the media. Some higher-end restaurants are understandably concerned about publicity stunts and other marketing activities that seem to fly in the face of the exclusivity of their establishment. My answer to that is simple these tactics wont be appropriate for everyone. That being said, if you are one of the restaurant owners that cringes at the thought of creating buzz in the community at large, I urge you to think about your position. Everyone wants to be associated with a winner. For some of your regulars, the whole reason they belong in the first place is because its exclusive and their being a part of that is an extension of their self-brand and identity. Creating buzz wont distract from that, it will reinforce it in many cases. They key is how the publicity comes across. If done correctly, it supports your position in the market, exclusivity and prestige.

TACTIC 3: BOUNCE BACKS This is an underutilized tool that bounces guests from peak times to off-peak times and can also work to encourage frequency in your food and beverage operations. While simple in theory and execution, this tactic can produce far more in revenues per dollar invested than traditional advertising. All you do is offer incentives at the point of purchase on popular services to encourage the guest to try your restaurant another time. For instance, if you are busy for lunch and need to drive sales for dinner, offer bounce back certificates that can only be redeemed during

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dinner hours. Test different offers and delivery vehicles and track response rates for each to hone in on what works best with your clientele.

TACTIC 4: STOP DISCOUNTING - Discounting tells our customers and prospective customers, We dont deserve full price, so well be happy to lower our rates to make up for the difference. Discounting the price would be to discount the 105 years spent building a brand. Instead of discounting, consider no strings offers that do not rely on percentages. Examples include value-added perks such as free valet parking, complimentary services, merchandise, etc. And, in a related topic, never offer coupons, only offer certificates. There is a big difference in perception.

TACTIC 5: BUSINESS SOCIALS If we select the right group to partner with, we can leverage their resources to promote your restaurant, and we can also target our core audience. Host socials where the food is center stage. Arrange photo opportunities that include your displays in the background and submit to local media. Partnering with a business or charitable organization works on many levels and can help us stretch our marketing budget while still delivering higher returns on investment than can be achieved with traditional advertising.

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TACTIC 6: SAMPLING Tasting is believing and if you would grade your food a B minus or above, you need to get it in potential customers mouths. Thats the best way to build recognition and it is more effective and less expensive than advertising. Every public event that draws your core audience is an opportunity to offer samples of your product. Pick the best 2-3 items on your menu that can be easily transported and get some solid representatives of your restaurant out to meet and greet at these off-property functions

TACTIC 7: HOST FOOD EVENTS Hosting food events such as the Taste of (insert your town) is a great way to position your restaurant as a center of the food scene in your market. It allows you to leverage the reputation, profile and credibility of all of the other participants, and it can also help you share the expense of holding the event. Hosting an event also provides your restaurant with the opportunity to recruit additional manpower and resources for promoting the event and gives that added edge with garnering local publicity.

TACTIC 8: Promote this program through next newsletter and other internal marketing vehicles to existing customer base. Pick Tuesdays (or slowest food day) and flip for the food tab. Guests will have a 50 percent chance of getting their food bill paid by the restaurant. This attracts our guests attention much more than a buy

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one get one free restaurant promotion. Guests are also more likely to have higher check averages than normal because there is a chance they wont have to pay. It creates a tremendous attention among your core guest base. TACTIC 9: MENU BINGO This is a great tactic for encouraging frequency and getting members to try different items on the menu. We simply create bingo cards that have different menu items in boxes. Have the cards designed with five columns and five rows. We can also promote other non-food items such as merchandise, cookbooks, and gift certificates. Guests have an allotted period of time 60 days for example to complete a connection just as they would with a bingo card. Once they try five items in any direction, they receive a free gift basket or other incentives that are roughly equal to one of the items purchased. TACTIC 10: BIRTHDAY PROGRAM - Research shows that 50 percent of all Indians eat out on their birthday. This presents an opportunity for establishments with solid birthday programs. So why dont restaurateurs do more to take advantage of this, but it does offer a chance for us to swoop in and capture our increased share of the market. A birthday program can be executed through new automated tools like those that are available through e-mail marketing service providers. We simply plug in the birthday and e-mail address of our members, and a secure and nicely designed e-mail is sent to them at a time we determine in advance. The system knows who and when to send the e-mail to and also tracks view rates for reporting

77

that allows us to know how well your program is working. We can also have the email include a redemption code that will allow you to track what percentage of the e-mails are bringing in guests and calculate a return on investment. Recent research has shown that retention based e-mail marketing is 300 to 400 percent higher than traditional vehicles such as direct mail and faxes. Its a great way to communicate and manage our clubs birthday program. Remember, differentiation and exciting tactics like the ones described above are particularly potent for your food and beverage operations. Smart marketing is best achieved through non-traditional techniques that are executed inside your restaurant and among your existing customer base. Opportunities abound if you look at your situation through the right lens. Use the ideas above to spark your own thinking of similar underutilized programs in your own operation and reap the rewards as other successful restaurants are around the country. Although sales promotion is a competent strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. After a consumer uses a coupon for the initial purchase of a product, the product must then take over. Sales promotion activities may bring several negative consequences, primarily clutter from increased competitive promotions. New approaches are promptly cloned by competitors, with efforts to be more creative, more attention grabbing, or more effective in attracting the attention of consumers and the trade.

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Another increasingly perceived drawback occurs with distributed manufacturers' coupons, such as those inserted in Sunday newspapers. While ideally these are offered as an incentive for new or occasional customers to try the product in hopes of making them regular buyers, research has suggested that most coupons are redeemed by individuals who would normally buy the products anyway. In effect, the manufacturers are subsidizing their existing sales, as only a relatively narrow segment of the consumer market actively uses clipped coupons from the newspapers. To address this problem, manufacturers have found that in-store coupon devices or displays reach a wider cross-section of buyers and are more likely to entice targeted customers. Also, consumers and resellers have learned how to milk the sales promotion game. Notably, consumers may wait to buy certain items knowing that eventually prices will be reduced. Resellers, having learned this strategy long ago, are experts at negotiating deals and manipulating competitors against one another, so that, for example, one company's product may be on sale one week and its competitor's the following week.

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MEMBERSHIP
LIFE TIME MEMBERSHIP OF 120000 The Lifetime Membership (Transferable/Saleable) is confirmed @ Rs.1,20,000/ Membership cards will be issued to member, spouse, kids up to 25 years and parents or in laws. Access to CK-27 clubs Direct membership to all 50 Country Clubs and resorts properties in India. Access to Mumbai Clubs also. Entitled for free Club facilities for Life time. Entitled to use 170 Affiliations & 158 Franchisee properties Annual administration charges Rs.1000/ Entry for all regular events with VIP passes Free Holiday package 2 nights & 3 Days for Five years in own properties. LIFE TIME MEMBERSHIP OF 175000 The Life Membership is Transferable & Saleable. Membership cards will be issued to member, spouse, and kids up to 25 years and parents or in laws. Access to CK-27 clubs Direct membership to all 50 Country Clubs and resorts properties in India. Access to Mumbai Clubs also. Entitled for free Club facilities for Life time. Entitled to use 170 Affiliations & 158 Franchisee properties

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 Annual administration charges Rs.1000/ Free Health club facilities for life time. Entry for all regular events with VIP passes Complimentary Holiday Home Plot of 1500 Sq. ft. in Kodai Foot Hills. 7 days and 6 nights for 30 years in our own properties in India. One way domestic airfare for 3 days and 2 nights only once in lifetime. LIFE TIME MEMBERSHIP OF 370000 The Life Membership is Transferable & Saleable. Membership cards will be issued to member, spouse, and kids up to 25 years and parents or in laws. Access to CK-27 clubs Direct membership to all 50 Country Clubs and resorts properties in India. Access to Mumbai Clubs also. Entitled for free Club facilities for Life time. Entitled to use 170 Affiliations & 158 Franchisee properties. Annual administration charges Rs.1000/ Free Health club facilities for life time. Entry for all regular events with VIP passes. Global country club access including Dubai, Sri-Lanka and upcoming club in Kodai Kanal also. RCI holidays for 30 years in all 3900 RCI-Properties Nationally Or Internationally.

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CHAPTER-III OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY

To analyze the marketing functions of branding strategies adopted by Club Mahindra.

To analyze the promotional channels and strategies adopted by Club Mahindra.

To determine the product & services provided Club Mahindra. To analyze the problems and solutions for promotional strategies in competitive age.

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CHAPTER-IV RESEARCH METHODOLOGY

84

RESEARCH METHODOLOGY
RESEARCH DESIGN
For this project a descriptive research study was appropriate as this study describes the buying perception of the consumers. This study will help the company to launch new promotional schemes in future. Based on this study we may have high probability of success regarding promotional strategies. The research design is a grand plan for conducting the research investigation. It specifies the overall framework and the specific procedure for collecting and anlyazing the data. Research Methodology is a strategy that guides a researcher in providing answers to research questions and for this, research survey is being done. "Accuracy of the study depends on the systematic application of the method". The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way. Research in common parlance refers to a search for knowledge. In fact research is an act of scientific investigation. It is the pursuit of the truth with the help of study, observation comparison and experiment in sort of the search for knowledge through objective and systematic method of finding solution to a problem in research.

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STEPS OF RESEARCH PROCESS

The seven major steps

Determine or define the problem or opportunity that is faced

Specify what information is needed

Identify the sources of the information.

Decide on the techniques for accruing the

iinformation Gather and process the information

Analyze and interpret the meaning.

Present the findings to the decision makers.

Data Collection Methods Data Collection was done in two ways they were1. 2. Primary Data Collection Secondary data Collection

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Primary Data Collection Primary Data was collected by using structured questionnaire and by taking interviews of the respondents. A structured questionnaire was formulated after conducting a pilot Survey. Secondary data Collection This was done by referring to the literature available on the reference books, internet etc. Data collected was compiled up and on the basis of percentage method depicted through bar diagrams Interpretation was done and recommendations was given. Sampling Design Sampling is the selection of some part of aggregate or totality on the basis of which a judgement or inference about the aggregate or totality is made. Sampling UnitThe sampling unit of my survey includes the existing and non existing customer required loan for their automobile. This survey was done with the help of proper questionnaire. Area : New Delhi & NCR Sampling Size: 30, Percentage: 100% Sampling Method - Simple Random Sampling Method.

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DATA ANALYSIS & FINDINGS

TABLE REPRESENTING THE SALES PROMOTIONAL AND MARKETING EXECUTIVES
Sex Male Female No. of Respondents 6 24 Percentage 20% 80%

SALES PROMOTIONAL & MARKETING EXECUTIVES

No. of Respondents

Male Female

INTERPRETATIONS

80% of the respondents are male. 20% of the respondents are female.

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TABLE REPRESENTING THE PRICING OF PRODUCTS

Prices High Reasonable Competitive Low Total

No. of Respondents 16 14 30 PRICING OF PRODUCTS

Percentage 54% 46% 100%

No. of Respondents

High Reasonable Competitive Low

ANALYSIS 54% of the respondents are of the opinion that the products are reasonable. 46% of the respondents are of the opinion that the prices of the products are competitive. None of the respondents feel that the prices of the products are either high or low. INTERPRETATION Majority of the respondents opine that the prices of the products are reasonable. The prices of the products are reasonable though they are competitive.

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TABLE REPRESENTING THE COMPETITORS STRENGTH Strength Quality Brand Image Pricing Promotional Activities Total No. of Respondents 24 6 30 THE COMPETITORS STRENGTH
30 24

Percentage 80 20 100

25

20 Quality 15 Brand Image Pricing

10
6 5 0 0 No. of Respondents

Promotional Activities

ANALYSIS 80% of the respondents are of the opinion that the competitors strength is brand image. 20% of the respondents opine that promotional activities are the strength of the competitors. None of the respondents feel that quality and pricing are the strength of the competitors. INTERPRETATION Majority of the respondents opines that brand image is the strength of the competitors.

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TABLE REPRESENTING THE QUALITY OF THE PRODUCTS & SERVICES

OFFERED BY CLUB MAHINDRA AND OTHERS

Rating Good Very good Fair Poor Total

No. of Respondents 17 13 30

Percentage 57 43 100

QUALITY OF THE PRODUCTS AND SERVICES OFFERED BY CLUB MAHINDRA

No. of Respondents

Good Very good

Fair
Poor

ANALYSIS Majority of the respondents i.e. 57% are of the opinion that the products are of good quality with respect to other competitors. 43% of the respondents opine that the products are of very good quality with respect to the other competitors. None of the respondents are of the opinion that the products are of fair or poor quality with respect to other competitors. INTERPRETATION Majority of the respondents is of the opinion that the products are of good quality and is at par with other competitors having brand names.

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TABLE REPRESENTING THE MERITS OF THE PRODUCTS & SERVICES OF CLUB MAHINDRA DIFFERENTIATES IT FROM OTHERS

Merits Reasonable price Quality Customized product Finishing Total

No. of Respondents 10 7 10 3 30

Percentage 33 24 33 10 100

MERITS THAT DIFFERENTIATES THE PRODUCTS OF CLUB MAHINDRA

12 10 10

10

Reasonable price Quality Customized products

Finishing 3

0 No. of Respondents

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ANALYSIS
33% of the respondents are of the opinion that reasonable pricing and a

customized product and services offered by differentiates the products of

Club Mahindra.

24% of the respondents are of the opinion that quality is the differentiating factor. 10% of the respondents are of the opinion that finishing is the differentiating factor.

INTERPRETATION Reasonable pricing and customized products differentiates the products &
services of Club Mahindra from that of others.

In fact, all the merits such as reasonable pricing, customized products, quality and finishing contributes in differentiating the products from others.

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TABLE REPRESENTING THE FACTORS WHICH PLAY A MAJOR ROLE IN DEMAND GENERATION

Factors 5 Price of the product & services Awareness about the product s Delivery of the product ordered Presentation about the product Design of the product 4 3 1 0 1 4 3 1 0 2 3

Ratings 3 0 0 5 0 4 2 1 4 1 3 0 1 1 1 2 4 1

5 - Very important, 4 - Important, 3 - Makes little difference, 2 - Not important, 1 Does not make any difference.

FACTORS PLAYING A MAJOR ROLE IN DEMAND GENERATION

6 5 4 3 2 1 0 1 1 4 3 3 2 1 1 1 3 5 Price of the product 4 3 2 1 4 Awareness about the product Delivery of the product ordered Presentation about the product Design of the product

00

0
2

0
3

0
4

0
5

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ANALYSIS Price of the product gets the maximum of 5 rating. Design of the product and the price of the product get the maximum of 4 rating. Delivery of the product ordered gets the maximum of 3 ratings. Awareness about the product gets the maximum of 2 rating. Presentation about the product gets the maximum of 1 rating.

INTERPRETATION Price of the product plays a major role in the demand generation. Design of the product plays an important role in demand generation. Delivery time of the product ordered can make a little difference in demand generation.

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TABLE REPRESENTING THE DISCOUNT, GIFT OR OTHERS IF GIVEN ON REPEAT PURCHASE

Discounts Given Yes No Total No. of Respondents 27 3 30 Percentage 90 10 100

DISCOUNTS GIVEN ON REPEAT PURCHASE

No. of Respondents

Yes No

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ANALYSIS 90% of the respondents are of the opinion that the discount is given on repeat purchase. 10% of the respondents are of the opinion that discounts are not given on repeat purchase.

INTERPRETATION Majority of the respondents is of the opinion that discounts are given on repeat purchase.

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TABLE REPRESENTING THE TARGET CONSUMERS

Target Upper class Middle class Lower class Total No. of Respondents 27 3 30 Percentage 90 10 100%

THE TARGET CONSUMERS

30

25

20 Upper class 15 Middle class

Lower class 10

0 No. of Respondents

ANALYSIS 90% the target customers are from upper class. 10% of the target customers are from middle class.

INTERPRETATION The target consumers are the upper class and the middle class.

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SALES AND PROMOTIONAL STRATEGIES ADOPTED BY CLUB MAHINDRA GROUP

18 16 14 12 10 Commission Schemes Free gifts Recognition 6 4 2 0 No. of Respondents Nothing at present

ANALYSIS 90% the target customers are from upper class. 10% of the target customers are from middle class. INTERPRETATION The target consumers are the upper class and the middle class.

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FINDINGS & ANALYSIS

54% of the respondents are of the opinion that the products are reasonable. 46% of the respondents are of the opinion that the prices of the products are competitive. None of the respondents feel that the prices of the products are either high or low. Majority of the respondents opine that the prices of the products are reasonable. The prices of the products are reasonable though they are competitive. 80% of the respondents are of the opinion that the competitors strength is brand image. 20% of the respondents opine that promotional activities are the strength of the competitors. None of the respondents feel that quality and pricing are the strength of the competitors. Majority of the respondents opines that brand image is the strength of the competitors. Majority of the respondents i.e. 57% are of the opinion that the products are of good quality with respect to other competitors. 43% of the respondents opine that the products are of very good quality with respect to the other competitors. None of the respondents are of the opinion that the products are of fair or poor quality with respect to other competitors. Majority of the respondents is of the opinion that the products are of good quality and is at par with other competitors having brand names. 33% of the respondents are of the opinion that reasonable pricing and a customized product and services offered by differentiates the products of Club
Mahindra.

24% of the respondents are of the opinion that quality is the differentiating factor. 10% of the respondents are of the opinion that finishing is the differentiating factor. Reasonable pricing and customized products differentiates the products & services of Club Mahindra from that of others.

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In fact, all the merits such as reasonable pricing, customized products, quality and finishing contributes in differentiating the products from others. Price of the product gets the maximum of 5 rating. Design of the product and the price of the product get the maximum of 4 rating. Delivery of the product ordered gets the maximum of 3 ratings. Awareness about the product gets the maximum of 2 rating. Presentation about the product gets the maximum of 1 rating. Price of the product plays a major role in the demand generation. Design of the product plays an important role in demand generation. Delivery time of the product ordered can make a little difference in demand generation. 90% of the respondents are of the opinion that the discount is given on repeat purchase. 10% of the respondents are of the opinion that discounts are not given on repeat purchase. Majority of the respondents is of the opinion that discounts are given on repeat purchase. 90% the target customers are from upper class. 10% of the target customers are from middle class. The target consumers are the upper class and the middle class.

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CHAPTER-V SUGGESTIONS & RECOMMEDATIONS

102

SUGGESTIONS & RECOMMENDATIONS

A big market share and the modern techniques of sales promotional strategies adopted by Club Mahindra is a complete and advance sponsored has been used and always they are growing through their complete expansion growth.

The several schemes are provided to their customers on various festivals and other seasons.

The dependent member should get more benefits. The pre-enquires should be entertained and a personal visit should be organized by the company.

Coupons and gifts should be distributed among the existing customers on their birthday, anniversary etc.

The events should be organized more frequently. An approximate budget/bill should be provided to the customers during trip and club visits.

The mode of payment should be more flexible for members The qualified and experienced personnel should be appointed for detailed enquires.

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CHAPTER-VI CONCLUSION

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CONCLUSION

It is concluded that the marketing strategies of Club Mahindra are excellent and the best Leisure and Time Share Industry in India but only because of the delay in services. Its image may get affected. Sales promotion techniques are distinct from most other forms of marketing in that they directly link the strategy and execution of a marketing campaign. They are geared toward creating an immediate boost in sales volume in response to a substantive offer in the promotion. As opposed to advertising to build brand image or name recognition, sales promotion is nearly always tied directly to the act of buying the product or service in question. As such, sales promotion is considered an efficient and effective vehicle for marketing communications. For consumers, sales promotion provides a direct and often rational motivation to purchase the product or service being promoted. Given the many forms sales promotions may take, marketers must plan carefully which approach is best for their intended audience and the intended result of the campaign. In some cases this will be guided by precedence in particular industries; for example, soft-drink makers tend to rely on sweepstakes and continuity programs rather than bonus sizing or free samples. As with any marketing communication, in sales promotions companies must be careful not to violate their brand image with the promotion. A classic example is with luxury brands and image. In these categories discounting and even sweepstakes may send mixed messages to customers, as the assumption is usually that being able and willing to pay the

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full price is an intrinsic component of buying a status product. If the company violates its luxury brand by "cheapening" it, the promotion may alienate the established client base.

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CHAPTER-VII REFERENCES

107

BIBLIOGRAPHY
WEBSITES www.clubmahindra.com www.hotelindustry.com www.salespromotion-hotel.com www.clubmahindragroup.com www.branding-positioning.com www.googlesearchengine.com

BOOKS Kotler Philip, Marketing Management, 13th Edition, New Delhi, Prentice Hall India, 346 p. Shajahan S. Dr., Service Marketing, 6th Edition, New Delhi, Tatamcgraw, 241 p.
John W, Kahn James V. Research In Education; Tenth Edition USA-New Jersey: Prentice Hall inc 2006. Lambin, J. (2000). Market-driven management: Strategic and operational marketing. New York: St. Martins Press. Zeithaml, V., Berry, L., & Parasuraman, A. (1993). The nature of determinants of customer expectations of services. Journal of Academy of Marketing Science, 21, Winter, 1-12. Marconi, J. (2000) The brand marketing book. USA: NTC Business Books. Besterfield, D., Besterfield-Michna, C., Besterfield, G., & Besterfield-Sacre, M. (2003). Total Quality Management. New Jersey: Prentice Hall. Jay Winchester, Point, Click, Sell, Sales & Marketing Management, November 1998 Stephanie Armour, Companies Grapple with Gripes Posted on Web, USA Today, September 16, 1998.

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MAGAZINES & NEWSPAPERS Business World Business Today Hotel Industry - At a Glance The Economic Times The Hindu Business Standard Line

109

CHAPTER-VIII ANNEXURES

110

ANNEXURE

QUESTIONNAIRE
PERSONAL INFORMATION
Name Gender Occupation ________________________ M___________ F___________ Self Emp. _______________ Business Address

___________Service___________ ________________________ Contact No.

________________________

Q1.

Do you know about Club Mahindra? Yes No

Q2.

If Yes, how do you know from? TV Radio Newspaper Internet Other

Q3.

If you are a member of Club Mahindra which features you like the most? Worldwide Branches Quality Packages Services Offers

Q4.

Do you like the facilities provided in Hotels of Club Mahindra Group? Yes No

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Q5.

Who represents the sales promotional and marketing strategies? Male Female

Q6.

What is the pricing of the products of Club Mahindra Group? High Reasonable Competitive Low

Q7.

What is representing the competitor's strengths in comparison with Club Mahindra Group? Quality Brand Image Pricing Promotional Activities

Q8.

Products and services offered by Club Mahindra in comparison with others? Good Very Good Fair Poor

Q9.

Why chose the products and services of Club Mahindra in comparison with others? Reasonable Price Quality Customized Products Finishing

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Q10.

Which Factors and their rating are in the major role for demand generation with respect to Club Mahindra Group?
Factors 5 Price of the product & services 4 4 3 Ratings 3 0 2 1 1 1

Awareness about the product s Delivery of the product ordered Presentation about the product Design of the product

3 1 0 1

1 0 2 3

0 5 0 4

4 1 3 0

1 2 4 1

5 - Very important, 4 - Important, 3 - Makes little difference, 2 - Not important, 1 Does not make any difference.

Q11.

Why the respondents choose the products and services offered by Club Mahindra Group? Due to Discounts Gift Others Targeting of Consumer by Club Mahindra Group as like as: Upper Class Middle Lower Class What is the main sales and promotion strategies adopted by Club Mahindra Group? Commission Schemes Free Gifts Recognition Nothing at Present

Q12.

Q13.

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