International Marketing

Presented by
Group 4
Deepansh Singhal
Anurag Gupta
Tanmay Parikh
Divyanshu Gandhi
Aman Sharma
Arjun Narang
 About the industry
• Direct, indirect and Induced tourism amounted
to US$7.9 trillion in 2016, which increased to
$8.27 trillion in the next year
• Contribution of travel and tourism to Indian GDP
was $234 billion in 2017-18 and expected to
reach $500 billion by 2028
• As of 017-18, 81.1 million people (almost 12%)
are employed in the Indian tourism industry
• 100% FDI is allowed through the automatic
route
 About the company
• Launched in 1975
• Pioneered the concept of ‘Responsible Luxury’
• Contains 4 different hotel brands
ITC Hotels (12), WelcomHotels (12), Fortune
Hotels and WelcomHeritage
• Over 9000 rooms under different brands
• Headed by Dipak Haksar
 Objectives

To analyze the future course of ITC

To conduct competitive analysis of the

potential competitiors

To prepare a market selection and entry

strategy
 Zone Selection
Regions with Highest tourism growth Tourism Development in different Regions
• Middle East
• East Asia and Pacific
• Latin America
Occupancy rate and average RevPAR
 GDP Contribution

•North East Asia

has seen a 20%
rise in
contribution of
tourism to GDP
and now has
highest
contribution
among all the
regions
 Factors for Market Selection(Country)
GDP Contribution
According to the World
Tourism and Travel Council
(WTTC), the tourism sector
directly contributed to a
whopping US$119.7 billion in
2016 alone and is projected to
reach US$222.8 billion in
2027, which makes up 5.3% of
total GDP for the region.
Competitiveness Index Travel and tourism competitiveness
Country Ranking Index ranks worldwide 136 countries
Singapore 13 based on their performances on 14
Malaysia 26
Thailand 34 criteria’s including safety, ICT
Indonesia 42 readiness, international Openness,
Vietnam 67 price competitiveness and transport
infrastructure.
International Tourism
 Political Stability

Cultural Dimensions
Between Countries With India
 Final Selection Based on Selected Factors
Thailand
Thailand’s strong hotel performance is
expected to continue throughout 2018,
with RevPAR up 8.1% in the first four
months of the year. ADR was up 6.1% for
the period while occupancy rose 1.9%.
Two of Thailand’s key markets saw
considerable growth, with Bangkok’s
RevPAR up 7.7% for the period and
Phuket’s up 11.6%.
Over the 12-month period of May 2017 to
April 2018, Phuket recorded 65 nights
with occupancy above 90%. On these
nights, hotels were able to charge an
average rate 98% higher than all nights
when occupancy came in below 70%
during the same period, making Phuket
the top performer in terms of high-
compression nights among key Asia
Pacific markets.
Vietnam
The Vietnamese capital Hanoi posted a 12.6% RevPAR
growth in 2017, driven by a 4.2% increase in occupancy to
an actual level of 81.4% for the year. Growth in foreign
investment, particularly from South Korea, Japan and
Singapore, has helped bolster Vietnam’s hotel growth.
In addition to economic growth, Vietnam introduced e-
visas for 40 countries in February 2017, including the U.S.,
China, Japan, South Korea and the Philippines. This has
helped boost tourism significantly. According to the
Vietnam National Administration of Tourism, the country
saw record foreign arrivals in 2017, nearing 13 million,
which was a 29% increase over 2016.
 Vietnam
Market Entry Strategy Promotion

1. Keep in mind the low GDP per capita of 1. Focus on offline marketing.
Vietnam. 2. Tie up with Vietnamese government for
2. Target Hanoi and Ho Chi Minh only tourism campaigns.
3. Focus on technological innovation of 3. Focus on image from a war torn and farming
hospitality industry country to a new world nation.
4. Open few hotels in top cities only but open 4. Tie up with UNESCO World Heritage Sites in
luxury hotels. Vietnam.
5. Provide shooting locations for Vietnamese
cinema.
 Thailand
Market Entry Strategy
1. It's a complete red ocean.
2. Go for Phuket first instead of Bangkok and
Pattaya
3. Joint Venture with a local hotel/hotel chain.
4. JV in all sorts of hotel segments, premium,
business and economic.
Promotion
1. Extensive digital marketing.
2. Heavy focus on SEO and ranking on online
hotel booking and tourism websites.
3. Marketing from the airports itself.
4. Hospitality partner for diplomatic and sports
events.
 Marketing mix
• Welcome Hotels (5-star Hotels)
Product • Services Offered – Room Booking, Butler Service, Wi-fi, SPA & Swimming pools,
Restaurant & Bar, Meeting Room, Laundry, Travel Desk, Child Care, Pet, Currency
exchange, Florist, Wake-up call

• Premium Pricing Strategy

Price • Price INR15000 – 30000
• Competitor Price – 10000 – 30000

• Hanoi – Vietnam
Place • Bangkok & Phuket – Thailand
• Business Hubs & Tourist Places (Near Beach)

• Media Mix (Newspaper, radio, Billboards, Websites, email, and direct mail)
• Social Media (Facebook, Instagram etc.)
Promotion
• Travel Agents
• Internet (Aggregators)
• Managers, Receptionist, Chef, Butlers, laundry servicemen, cleaners, security, bell
People
boys, room service staff, waiter

• Hotel Lobby, Restaurant, Meeting Room, Outside design of building, parking place,
Physical Evidence
Interior, interior temperature, smell, music
Process • Room booking, Check-in, Stay in hotel, Payment, Check-out, consuming services