1. Executive Summary ........................................................................................................................................1. 2. Situational Analysis ........................................................................................................................................1. 2.1. Customer ...............................................................................................................................................2. 2.2. Competitors ...........................................................................................................................................2. 2.3. Company ...............................................................................................................................................2. 2.4. Context ..................................................................................................................................................2. 3. Potential for growth and key attractions .......................................................................................................3. 4. Problems in the North-east ........................................................................................................................... 13 4.1. Insurgency ............................................................................................................................................ 14 4.2. Infrastructure ....................................................................................................................................... 14 4.3. Governance .......................................................................................................................................... 15 4.4. Media ................................................................................................................................................... 16 4.5. Permits ................................................................................................................................................. 15 5. Key Objectives............................................................................................................................................... 18 6. Current Market Strategies ............................................................................................................................. 19 6.1. Infrastructure and other projects .......................................................................................................... 19 6.2. Participation in International Trade Fairs and Exhibitions ...................................................................... 19 6.3. Marketing Development Scheme .......................................................................................................... 20 6.4. Hospitality to Foreign Media/Travel Trade Personnel ............................................................................ 20 6.5. Hospitality to Foreign Media/Travel Trade Personnel ............................................................................ 20 6.6. Hospitality to Foreign Media/Travel Trade Personnel ............................................................................ 20 7. Positioning .................................................................................................................................................... 21 8. Market Mix ................................................................................................................................................... 23 8.1. Product ................................................................................................................................................. 14 8.2. Pricing .................................................................................................................................................. 15 8.3. Place..................................................................................................................................................... 16 8.4. Promotion ............................................................................................................................................ 15 7. Future Prospects ........................................................................................................................................... 21
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1. EXECUTIVE SUMMARY
North East India comprises of seven sisters and one brother states i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura and Sikkim. Though much has been heard about them, they have always been some sort of a mystery to the other states. While other tourist places in India have exhausted their attraction, a lot of unexplored treasure still remains to be seen in the north east. The lushness of its landscape, range of communities and geographical and ecological diversity makes the North East quite different from other parts of the subcontinent. It is this freshness, that makes north-east a prospective tourism paradise in the country. There are a number of opportunities to market this region as a whole to people looking out for an exciting vibrant and different experience altogether. Thus with effective marketing and inflow of tourists, great opportunities of revenue generation can be attained. Although, the government has fathomed this motive and has taken various initiatives to promote tourism here, the calibration to which it can be reached has yet not been achieved. Major challenges in the marketing of tourism in this region have been problems like insurgency, infrastructural constraints and area permits due to its proximity with the countrys border.
2. SITUATIONAL ANALYSIS
Analysis of the entire framework in accordance to the current situation in North East for tourism is done by applying the 4C theory.
Customers
Competitors
Context
Company
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2.1 CUSTOMER
The north east region is a potential visit for one and all. The myriad places and tourist attractions have something for people of all interests. For adventure seekers which are likely to be the younger lot, there are activities like trekking, White Water Rafting, Mountaineering, Wildlife Explorations and ParaGliding, to name a few. This region is also a paradise for nature lovers or photographers. The panorama of mountains, valleys, rivers and with a widespread variety of flora and fauna makes the place a must visit for them. Also, culture in the north-east is one of its kinds, in the country. Each of the states has its own unique folk dance, festival and cultural activities. For art lovers and women, the north east is a shoppers paradise! This is regards to the sundry handlooms, silk, cane articles and handicrafts available in the north east. Thus in all, this region has a potential to attract customers of all types. The region can be marketed to youngsters, family holiday seekers, honeymooners and to anyone who is looking for a new and a different experience.
2.2 COMPETITORS
India comprises of 28 states and 7 Union Territories, each known for its distinct charm. Every state and union territory has a Tourism Development Board which is responsible for providing information and infrastructure to the tourists visiting them. So at a time, many options for tourists are available. Some of the major tourist attraction boards are: Tourism Department, Kerala, Madhya Pradesh State Tourism Development Corporation Limited (MPSTDC) Tourism Department, Jammu & Kashmir. But north-east has a competitive advantage because of its natural unexplored beauty. It has tied up with travel agents and agencies which sell cost effective tour packages.
2.3 COMPANY
Northeast India falls in the distinctive part of Indo Burma hotspots which ranks 6th among the 25 bio diverse region of the world. The region is a treasure trove for herbs, plants, animals and microbial resources. Despite of all the natural resources, North East remain one of the most secluded terrain of India with all the possibilities of economy rise. Tapping that potential, we wish to enhance tourism in the region. The idea is to promote the inflow of tourists in the region by revamping the current marketing strategies followed by the ministry of tourism. The tourism boards of the states, by applying these strategies can create new possibilities of revenue generation for their respective states.
2.4 CONTEXT
Tourism in India is ubiquitous. Most of the people at one point in time travel to one place or the other for various purposes such as holiday, leisure, adventure or simply to rejuvenate.
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However, most of the places have been exhausted and they are reaching a point of saturation in terms of what they have to offer. In this situation, north-east India remains a potential newcomer in this league, as most of it is unexplored. For a tourist looking for something new and exciting, the north-east states have a lot to offer for all kinds of people. For it to achieve its potential worth, we wish to tap this region for enhancing its tourism.
It is a region with vibrant landscape, hillocks, woods, brooks and streams, flora and fauna. An abode of one horned rhino, blue rivers and red mountains, aromatic tea gardens make tourism in Assam a special experience. Assam bears a testimony of rich cultural heritage through its temples, monuments, and torrential Brahmaputra River. For an adventurer, this state holds rafting, river cruise, mountaineering, para sailing, boat racing, bird watching etc. Kaziranga sanctuary with its famous one horn rhino too is a favourite for tourists. The festival of Bihu, celebrated thrice a year is another unique feature for the tourists to looks out for. Apart from the above, the tea festival and handicrafts in cane and silk are key reasons for tourists to converge. Arunachal Pradesh This 'Land of Rising Sun' has many wonders and attractions for travellers. The wavering rivers, snow clad mountains, stubborn plains, exclusive flora and fauna, legendary cultural heritage trailing since ancient times, the habitat of wild savages, the thick woodlands, the historical heritages, the tribal terrains. For the nature lover, this state holds 600 species of orchids among thousands found in Arunachal Pradesh. The Buddhist monastery at Tawang is another famous monument for tourists to get attracted to.
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Meghalaya Meghalaya is an embodiment of eternal bliss and tranquillity wrapped in utter beauty. The Abode of Clouds acquires its charm from the picturesque locales, bountiful nature, fresh and sedating surroundings and yes the adventure sports. The exposition of exuberant emerald hills and glens often bathing in frequent drizzles resuscitate your spirits. Trip to Meghalaya promises a rendezvous with the exclusive flora and fauna, the amicable tribal folks and their cultural heritage. Tour to Meghalaya can be for adventure, for sightseeing, for resurrection or simply to relax and enjoy. Mizoram The beautiful north-eastern state of India, Mizoram, slices its borders with Myanmar, Bhutan, Bangladesh, Assam and Manipur. The word Mizo means highlander and Mizoram means the land of mizos, the hedonists, who are very particular about their ethics and deontology. The cities of Mizoram are cocooned by the mighty mystic mountains, rare flora and fauna and thick bamboo forests. On the contrary of these woods are the precipitous hills with lavish green fields. The meandering river with a graceful gait and shimmering waterfalls make up the exorbitant atmosphere of the state. The capital city Aizwal along with many others has potential of exciting tourism in Mizoram. Manipur
Another state with a varied culture, dance, wildlife, handicrafts for the tourists. The Manipuri dance in its difference and uniqueness is one entity in itself which must not be missed. With the exquisite handicrafts, beautiful cities, Manipur is a star attraction among the north eastern states.
Nagaland The undulating state of Nagaland is extremely charming. A home to as many as sixteen tribes, the state has much to explor e. The virgin terrains of the state are enchanting. One must visit Naga City to experience the panorama of nature, the warmth and hospitality of people, lavish blossoms and coy rivers making their way through the rugged terrains. If you
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are the victim of hectic monotonous lifestyle and then a tour to Nagaland is for you.
Sikkim
Sikkim in the bosom of Eastern Himalayas with its avant garde surroundings and spectacular tableau is another fine state. The Shangrila, the Mt. Kanchenjunga makes Sikkim a charming land representing a concoction of Buddhism and Tibetology. With Buddhism predominant in the state you will see many monasteries and ruby clad monks here. For the nature lovers, the state has eminent orchids sanctuary where 500 indigenous species of orchids are found. An adventure tour in Sikkim has many druthers for adventurers. On your way to trekking you will witness many quaint dales and mountain lakes. A base for mountaineering expeditions the rivers of Teesta and Rangeet are superb for river rafting.
Tripura
One of the seven states in the North East, Tripura is believed to be originated from "Tripura Sundari" - the supreme deity of the state remarkable in Hindus as one of the fifty one peeths of Hindu Pilgrims. Tour to Tripura will be very exciting for one because of its ethnic cultural diversity, its bountiful natural purlieus, its temples, museums and palaces. Although the contribution of the north east to Indian Tourism is very low in percentage, but there has been a phenomenal growth in the number of domestic and international travellers. Furthermore, the board is optimistic that the numbers will substantially increase by 2012. Chart 1 denotes the domestic tourism and Chart 2 denotes the foreign tourist.
STATE ASSAM
2006-2007 10374
2009-2010 14728
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4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 ASSAM ARUNACHAL P. MANIPUR MEGHALAYA MIZORUM NAGALAND SIKKIM TRIPURA
2006-2007 2009-2010
4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 ASSAM ARUNACHAL P. MANIPUR MEGHALAYA MIZORUM NAGALAND SIKKIM TRIPURA
2006-2007 2009-2010
4.1 INSURGENCY
The problem of insurgency in the region has a long history. The insular politics and Delhi centric approach of the Indian government is at the core of much of the discontents, widespread criticism, feelings of subjugation and notion of being colonized. There is a constant fear in the minds of the people that their identity is being eroded due to the submergence into the vast ocean of Indian humanity. The people of the region started alienating themselves and the feeling of self-determination started to germinate. With the aim of preserving their own identity various ethnic groups inhabiting in the region, undisturbed for centuries, began to differentiate among each other severing the local ties and affinities and started to struggle with arms. Kidnapping, extortion, killing, bandh, strikes and curfews have become the order of the day. At the same time, the numbers and activities of the plain criminals masquerading as insurgents have also increased alarmingly. Some of these groups are ULFA, NLFT, NDFB and NSCN. 4.2 INFRASTRUCTURE The rich natural and human resources available in this region could not be utilized to the full extent mainly due to the geo-political condition, including ever-deteriorating law and order, which has a lot of implication on the development of must needed infrastructure. The negligence of the central government in the past and due to the problems of insurgency resulted into the gross deficiency of infrastructure in the region. The lack of infrastructure has not only spoiled the prospect of economic development but has also created a horizontal division among various ethnic groups affecting the fabrics of social harmony in the region. All the constituent states of the region are internally lockedthemselves locked and locking out others, unable to connect with each other physically in terms of poor transport links, and more seriously, unable to make connections intellectually and emotionally with their closest neighbours, or even with and among their own people. It has displaced the common understanding and linkages for peaceful coexistence and regional cooperation.
4.3 GOVERNANCE
The state of governance in the region is in pathetic condition. Government machinery is on the brink of collapse. Corruption, squandering of public funds, deteriorating law and order, lack of transparency and accountability, bureaucratic rigmarole, insensitivity and so forth are quite rampant in the region. There is widespread allegation of insurgency-government officials-bureaucrats-politician nexus, including law enforcing agencies, and siphon off public funds. All this has eroded the individual capabilities and institutional capacities to meet the social objectives. Therefore, until and unless the quality of governance has been improved, no matter how much is the fund earmarked for whatever the policy programme initiated would not be successful and only the common people have to bear the brunt.
4.4 MEDIA
As far as the North-eastern region goes, the media tends to focus on ethnic conflicts and under-development, often neglecting the pioneering developmental efforts made in the region. In the psyche of the general populace there is the impression that nothing is happening in the region other than violence by insurgents with a focus on killings, kidnappings and extortions. The oversimplification, overgeneralization and sensationalism
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with which the region is reported have become a norm in national dailies. Besides the media makes us associate the region with unfamiliar cultural practices which leads us to differentiate them from us.
4.5 PERMITS
Another drawback for the tourist is that security concerns require Restricted Area Permits and Inner Line Permits to be issued in some parts of the region, which serves to exaggerate the inaccessibility of the region.
5. KEY OBJECTIVES
To achieve the overall vision of developing the North East Tourism, five key objectives need to be achieved. They are:y y y y y Positioning and maintaining the tourism development as a priority activity; Enhancing and maintaining the competitiveness of the North East India as a tourism destination; Improving the locally existing tourism products and expanding these to new market requirements; Creation of world class infrastructure; Developing sustained and effective marketing plans and programmes.
6.5 PUBLICITY
In order to give wide publicity to the tourist attractions of the North East Region, the Ministry produced a series of collaterals including state-wise brochures and thirteen posters on each individual state and five themes related to the region such as music & dance and arts & crafts. A compendium on North East as a whole and also a set of six display scrolls on each of the individual state of North East were produced. A logo and brand line for the North East titled Indias North East Paradise Unexplored was devised for the North East Region. CD of the brochure and a high resolution image CD on the Region have been produced. Films and commercials on North East and a film on Eastern Himalayas have also been produced. A booklet on the legends and folklores of North-East of India has been produced by the India Today Group supported by the Ministry of Tourism. These legends and folklores are related to geography, beliefs, culture, tradition etc. In 2009-10, the Ministry of Tourism also produced a new 60 seconds TV commercial aired on various TV channels to promote North East of India in the Domestic Market. A Road show for North Eastern States was also organized in Kolkata in August 2009.
6.6 IHMs/FCI
The Ministry of Tourism provided financial assistance for setting up of Institute of Hotel Management IHM) and Food Craft Institute (FCI) in the state. As per the recent decision of Council of ministers the schemes scope was broad based to cover the funding of infrastructure creation in vocational schools, polytechnics/ITIs Universities etc. for starting courses in Tourism and Hospitality sector.
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7. POSITIONING
The North East region is a heaven of rich natural beauty, serenity and exotic flora and fauna, thus it requires a positioning statement that captures the essence of its tourism product to convey an image of the product to a potential consumer. Therefore, a powerful positioning statement serves effectively to differentiate each of these destinations from their competitors, and provide an effective umbrella under which the whole marketing effort has been organised and implemented. North East Indias positioning statement says Come and Discover Indias Unexplored Piece of Heaven. The statement focuses on what makes the east unique and unmatched tourism destination in India. This is almost certainly related to its great competitive strength, i.e. the unexplored beauty and rich cultural heritage that continues to live in a largely unchanging and vibrant manner even today.
8. MARKETING MIX
Marketing mix for tourism as a product: The designing of the marketing mix variables in case of tourism is significant as it helps the marketer in conceiving the right ideas, particularly to raise the acceptability of the tourist product by stimulating and penetrating the demand. Framing of a proper marketing mix is significant because it helps the tourist organization in accomplishing the objective and projecting a fair image.
8.1 PRODUCT
Tourism is a composite product with components like attraction facilities and transportation. Attraction deserves an intensive care. It includes natural site, places of historic interest, events and cultural attraction. The facilities compliment attraction. The facilities include accommodation, food, transportation and recreational facilities. The transportation component includes the vehicles and infrastructure. Innovation in the tourism product helps raising the sensitivity. The users of the service are looking forward to better and improved product. The provider of the tourist is a travel agent or the package tour. A well conceived and designed package tour, covering a wide range of tourist attraction at an economic price, helps in attracting the potential tourist. The travel agent performs numerous activities such as hotel arrangement and accommodation, site seeing arrangement, domestic transport arrangement, air travel arrangement etc. In a true sense the tour agents and the travel agents are the vehicles who can give a fillip to the tourism industry, provided they are well trained. Thus, the scope of PRODUCT in case of North Eastern Tourism will consist of all the following:
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y Accommodation- hotels, motels y Destination- natural scenes, historic, social cultural, artificial structures y Transportation-airways, railways, roadways, waterways, local transport y Tour operators- travel companies, travel agents, guides y Shopping- handicrafts, handlooms, souvenirs
8.2 PRICING
Pricing of the tourist product is complex. Geographical location of the destination, seasonality and varying demand affects the pricing decision. In North East India, the pricing strategies become important for promoting the tourism industry, since more than 40% of the total population is below the poverty line. In order to develop the tourism more and more potential users are to be transformed into actual users. When a tourist proposes to visit anywhere in the North East, the total cost of his traveling also includes the expenses incurred on transportation, accommodation and communication. Liberal pricing strategy is found to be a productive pricing decision, particularly in case of tourism industry. The different pricing methods generally used are cost based pricing and demand based pricing. Since the North Eastern Tourism is still in its developing stage the tourism boards have adopted two pricing strategies. Differential Pricing as the business is seasonal and Value Pricing so that more and more tourists can be targeted. A few examples of all inclusive packages offered are Mesmerizing North East: 6N7D, 2nt Darjeeling, 1nt Pelling, 3nt Gangtok ,Rs. 13999 per person on twin sharing basis, Thrills in the North East: 7N8D. If we further analyse the above examples the total cost per day per head is Rs. 1800 approx, now this cost includes, all meals, tours and all transfers. Thus its good value for money, however, the above illustrations are for non seasonal charges. Seasons command a premium of 30-35%.
8.3 PLACE
A packet of tissues can be bought almost anywhere but the places where tourism can be bought are relatively few. Tourism is different from many other products, i.e. here we travel to the product, so to enjoy a week in the North East one must first travel to get there whereas most of the other goods we buy, from cars to tomato sauce, travel to us. The Ministry of Tourism in the North East believes that travel and tourism are ideas in the minds of prospective buyers. They cannot easily be measured, touched or evaluated at the point of sale prior to performance, and in travel and tourism the point of sale is, more often than not, remote from the product. You cannot hold an experience, and the familiar wish you were here which is written on postcards by holiday-makers demonstrates a wish to share the experience because there is no way it can be packaged and brought home. The role of holiday snaps is interesting as they are an attempt to capture the experience so that it can be shared and relived. The place where the customer buys the tourism product can vary greatly, travel
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agents, tour operators and travel websites are some sources to gather information and plan trips accordingly.
8.4 PROMOTION
In spite of its tremendous tourism attractions, the North East gets only a handful of tourists. The situation can be improved only by aggressive marketing. A brand image of North East in the pattern of the Incredible India has been developed, portraying the multiple states and its uniqueness and projecting how it is different from other competing destinations. Extensive market research has been undertaken to identify the source markets for North East and are working towards developing and positioning the tourism attractions to suit the demand of such markets. For this purpose an interactive website has been created which also have links to The Ministry of Tourism website, all other states of the North East as well as service providers in the private sector. In this way the prospective traveller will be able to get all the information and service at one place. Since 2008, the North Eastern tourism board has been actively participating in major international tourism fairs. Such participation is organized jointly with the private sector as part of the policy of PPP so that the presence is impressive and a comprehensive picture of these states is presented to the visitors. Suitable incentives will also be provided to national and international film industry to use the North East as the locale for films. Such film shooting will also help to provide the outside world a correct and positive impression about the states. Moreover, the current promotion of tourism in the north east region is image-specific. The brochures and posters on each individual state capture the scenic attractions of the place. The tourism board is promoting themes capturing the variety of music, dance, and arts and crafts popular in the region. Also, a compendium on all the key attractions of the places exists for reference. A logo and brand has been prepared too. The brochure is also prepared in the disk format for easy circulation. The Ministry of Tourism also produced a new 60 seconds TV commercial aired on various TV channels to promote North East of India in the Domestic Market. Other than the above, several promotional videos and movies have been released. In a nutshell, while the promotion schemes have been rolled, a lot of work needs to be done to position the product in the prospective tourists. Besides, the North East Tourism Board has tied up with travel agents and agencies which sell cost effective tour packages. The travel agents who have been picked up are reliable and are government affiliated so that there is no scope of discrepancy. Travel companies, associated with the board, are expert in providing a quality package meeting customer satisfaction. They have team of professionals fluent in foreign language like English, French, German, Spanish and Asian language. Plus, their excellent accommodation facility, catering and travel assistance are meant to put tourists at great convenience. Promoting tourism in North-East India is not the sole purpose, the board is also trying its best to meet the standard set by guidelines of sustainable tourism .Taking care of tourist's all needs while they are on tour, it is assured that they will enjoy their vacation in North-East India with utmost ease.
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9. FUTURE PROSPECTS
Tourism is a known dispeller of cultural bias and the potential for tourism in the North East region is tremendous. The Ministry of Tourism calls the region a paradise unexplored. Global tourism has been booming and future projections show that this trend will continue.
Extremely high rates of literacy, particularly in states like Mizoram, Meghalaya and Manipur (which are above the average national literacy rate), low density of population (the population of the region is 3.79% of the national population while its geographical area is about 8%), reasonably high standards of health and salubrious climate, are important strengths of the region. The fact that the people of these states are conversant in English makes it even better equipped for international tourism. 19.39% of Indias land area is estimated to be under forest cover. As compared to this, the North Eastern region has 64% forest cover, an ecological asset, for which it has been identified as an ecological hot spot of the world. The relative inaccessibility of the region has helped preserve its pristine natural beauty, its great variety of flora and fauna, from wild orchids, diverse varieties of bamboo to rare medicinal plants, as well as the the rare one-horned rhino whose only habitat is in this region. Hence the fashionable concept of eco-tourism would find easy acceptability here. It must be a two-way process in which tourists and the tour operators help to strengthen the environment while that very environment and the locals provide them with resources and support for an enjoyable holiday There is also great scope for developing adventure tourism, be it river rafting and angling in Assam or trekking in Arunachal. Those looking for an adrenaline rush will find plenty of things to do with their time and money. Another possibility is to develop pilgrimage tours. There are innumerable Buddhist monasteries and Hindu temples in the area such as the 400 year old Tawang Monastery and the medieval Kamakhya Temple. Spiritual tourism is known to draw droves of tourists from various parts of the world.
Besides these the colourful festivals of the region can also be promoted in a big way. For instance, Assams Bihu festival and Tea festival, Chapchar Kut of Mizoram, Lai- Haraoba of Manipur and so on, have a lot to offer to tourists in terms of sheer novelty, with colourful costumes and mesmerizing songs and dances. Another kind of tourist fashion or product designers for example might find a tour of Mizorams craft centres more appealing. The states sarongs and shawls and cane and bamboo designs are exquisite. The benefits that can be had from tourism are also manifold. Being labour-intensive it can generate employment and ensure that benefits are shared by a large number of service providers; lodgings, food and beverages, handicraft, local transportation, guides, shopping, entertainment, photography and so on. Moreover tourism enables decentralized regional development. Tourism also ensures that development is not urban-centric. Thus, the board believes that this is the beginning of a new era in Indian Tourism.
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