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E-Commerce Assignment Make My Trip.com

SUBMITTED BY: ADITYA SINGH YADAV MBA IV SEM, MARKETING DEPARTMENT OF BUSINESS ADMINISTRATION UNIVERSITY OF LUCKNOW

Index Title Business Model Values Revenue Model Customer Value Preposition Market Place Major Competitor Competitive Advantage Marketing Strategy Organization Structure Future Growth Conclusion Appendix References Page 3 4 5 6 7 8 9 10 11 12 13 14 16

Business Model Make My Trip.com is online travel agency founded by Deep Kalra in 2000 providing online air tickets, rail tickets, bus tickets, hotel reservation to their customers. They sell over 12000 flight tickets, 1000 hotel room nights and over 100 holiday packages every day. They fall under B2C business model in which they provide online booking of tickets to their customers as their product and wide variety of services round the clock on a single click of mouse. They also provide various holiday packages to their customer which saves the time of the people in planning their vacations. It is expected that by 2010 Make My Trip will capture 23% of the total travel market in India. Make My Trip has also opened offline retails outlets to promote their holiday packages and to create a brand image of them. Make My Trip currently launched a US based operation IndiaAhoy, a B2B portal which sells India tours packages through travel agents and tour operators.

Values Make My Trip is a combination of several values such as:Customer Centered Approach: They are focusing on their customer both externally and internally. Integrity: Make My Trip is maintaining a consistency between their words and action. They are maintaining. Innovation: Make My Trip is combining innovation in business as well as in technology to provide best products and services to their customers. Teamwork: Make My Trip believes in teamwork for achieving goals of providing best service to their customers. Accountability: Make My Trip feels the responsibility and accountability which they promise to their customers and stakeholders. Passion for Winning: Make My Trip believes in can do attitude and believes that nothing is impossible.

Revenue Model The turnover for Make My Trip for the fiscal year 2010 was Rs 1000 crore which has risen to Rs 1500 crore in 2009. 66% of Make My Trip business is from air and 34% from non air. One of the sources of revenue of Make My Trip is the commission charge which they take on online bookings. Make My Trip provides cheapest airline tickets. Corporation purchases tickets from private airline agencies on a large scale thus lowering down the cost and sell these tickets to their customers with added commission charge. The percentage of commission is maximum incase of airline tickets while its very low in case of railway tickets because of only one supplier. Make My Trip has eight airs, around 5 to 10000 in hotel and around a thousand in buses. A major portion of their revenue comes from marketing of various companies such as Kingfisher, Tata, Spicejet on Make My Trip website by showing e-banners of various offers, products etc which these companies offer. Many hotels in India have tied up with make my trip to promote their holiday packages on Make My Trip website. Some revenue is also earned from this area. But online hotel booking is not a big market in India as Indians prefers to call directly to hotel for booking rather than booking from MMT which will charge 10-15% commission on it. 15-20% of their revenues also comes from their retail offline outlets across India.

Customer Value Preposition Make My Trip core preposition to customer is best deals at customers convenience. Make My Trip is a reliable, efficient and uses latest technology for its business. Make My Trip believes that its not the cheaper air tickets which will bring customers to them. Make My Trip believes in creating an experience for the customer. The advantage that a customer gets while visiting Make My Trip.com, is that it lists all available options available in a glance thus saving his valuable time. Booking is also very flexible through Make My Trip which allows customers to make amendments and cancellation at any moment .Make My Trip also provides various payments facility ranging from net banking, debit cards to credit cards of almost every bank. In case of any refund money is automatically transferred back to same account through e-transaction. Besides all these advantages Make My Trip also provides many value added services to customers such as various discounts and offers on various booking.

Market Place Make My Trip started its business from India-USA travel market in year 2000. Following its success in US Make My Trip started its operation in India in 2005 and within 5 years it captured almost 50% of all online sales of travel market in India. Although Make My Trip operates purely on internet initially but in 2008 they decided to open their offline retails stores in India to promote their holiday packages and to create a brand value. Currently there are 20 offline stores running in major cities of India.

Major Competitor yatra.com A major competitor of Make My Trip is yatra.com started in 2006 in India. Their marketing strategy was to target market through TV and online. Yatra.com has over 1 million registered users with a sale of over 1,100 Crores. Yatra.com has got 10 offline offices in 10 major cities of India. Yatra.com is been declared as the Best Online Travel Agency of the year 2008 at the Galileo Express Travel Awards and was also in Top 100 start ups in Asia awarded by Red Herring. Yatra.com has a market share of 30%. cleartrip.com Another major competitor of Make My Trip is cleartrip.com started in year 2006 by Hrush Bhatt. It has unique feature travel feature for both air and trains i.e. the air and train calendar which displays fares between destinations for upto 3-6 months ahead.

Competitive Advantage A strong competitive advantage of Make My Trip is to think beyond customer satisfaction and to create an unforgettable experience for the customer. Make My Trip has customer testimonial which provide a very strong feedback about their customer care executives. All other online travel agencies provide basic services of booking but its the experience the customer feels gives Make My Trip a competitive environment. Another competitive that Make My Trip posses is the technology which they implement in their products. They are making continuous upgrades in their processes to enhance their customer experience. Being advance in technology provides them an extra edge over other competitors in Online Travel Agency market. Make My Trip is not only focusing on their customers to create an experience but also on their suppliers. Make My Trip is focusing on providing the best and most suitable environment to their suppliers to showcase their products.

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Marketing Strategy At 40% growth rate every year, online travel agency is India is a rapidly growing space. Make My Trip marketing strategy is focusing on making Make My Trip an elite brand rather than product. To attain this target they are focusing on all four Ps of marketing i.e. Product, Price, Place and Promotion. Their product i.e. online tickets are greatly accepted by customers and their value added services is providing customer satisfaction. As far as Price goes they are providing online tickets to their customers at an affordable price. Make My Trip is using e-market as the place for their business which is accessible to customers from anywhere. Although internet penetration in India is only 7%, Make My Trip is taking it as a challenge or opportunity for their business. As far as promotion goes Make My Trip is communicating and making people aware about their products and services through electronic banners on websites, television commercials and also through their 3 offline retails stores. Online advertisements are meant to drive transactions while offline transaction i.e. through television is helping Make My Trip to emerge as a brand. The reason Make My Trip going for offline marketing because building a brand online is very difficult. A person when online, he is busy surfing information and checking mails. User rarely puts his eye on the online advertisements.

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Organization structure Make My Trip is an organization of young people employing over 700 employees from travel, tourism, technical and hospitality industries. Make My Trip believes in empowerment policy. This means they give freedom to their employees the opportunity and freedom to think and act in ways that will allow them to get the job done and still be consistent with their services. Details of senior management are as follows: Deep Kalra (Founder and Chief Executive Officer) Keyur Joshi (Co-Founder and Chief Operating Officer) Mohit Gupta (Chief Marketing Officer) Rajesh Magow (Co-Founder and Chief Finance Officer) Amit Somani (Chief Products Officer) Mukesh Singh (Senior Vice President, Technology Development)

Major investors of Make My Trip are: Ravi Adusumalli and Vibhor Mehra, SAIF Partners Sanjeev Aggarwal (Managing Director), Helion Venutre Partners Tim Guleri (Managing Director), Sierra Ventures

Make My Trip has been ranked 2nd in the 2010 Great Places to Work Survey. The survey was conducted based on best practices and employee feedback by the Great Place to Work Institute, India.

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Future Growth Make My Trip is focusing on domestic travel tickets as the growth rate is over 100% from last three years. On a larger scale Make My Trip is expecting a higher growth in the outbound travel segment. Now more Indians want to go overseas for holidays and vacations. Make My Trip is thinking of converting domestic travelers into international holidayers by offering them holiday packages at an affordable price. Make My Trip is currently planning to raise upto $100 million through an initial public offer on US stock exchange Nasdaq. Make My Trip is intending to expand its operations by selling its share and also investing in strategic assets.

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Conclusion Make My Trip.com is a good example of Business to consumer e-business model.This Its a good example of how to do marketing of a product online and offline. Online travel industry has a growth rate of 40% in India and with many players entering this market, Make My Trip market share shows its marketing strategy is efficient and effective. They focus more on creating a customer experience rather than providing product at a cheaper price.

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Appendix

MakeMyTrip.com Homepage

cleartrip.com Homepage

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References www.Make My Trip.com www.cio.in/view-top/Make My Trips-road-success http://www.alootechie.com/?q=content/interview-deep-kalra-founder-andceo-Make My Tripcom