Product/Service:

The product we are having on offer is

Sikkim Experience and the far and reach
of it can only be possible when it is
complemented with excellent service.
Be it strong floriculture sector, or the
strong potential of medicinal plants
industry, Sikkim is on its mission and is
committed to it.
Sikkim is home to around 5,000 species of
flowering plants, 515 rare orchids, 60
primula species and 36 rhododendron
species.
Of the 6,000 medicinal plants in India, over 424 plants (including the
famous Artemisia
vulgaris that is used as an antiseptic) are grown in Sikkim.
Price:
It is a place of serenity for all and a variety could be brought to the platter
for the consumers.
Bundling Package and Package deals: Clubbing of the expenditures into a
package so that the tourists can have a hassle-free tour. Be it adventure
sports, travel tickets, accommodation or site-seeing, convenience is what
will make the vacation worth remembering.
Economic Pricing: Cost plus pricing, competitiveness and a volume based
product can be the key. It can so happen that we have to have packages
targeting our segments (considered above in segmentation) separately.
For that, we can give discounts or economic pricing for group bookings or
corporate bookings.
Seasonal Pricing:
Using a mix of pricing throughout the year to cover low, high, and
shoulder seasons is a standard way for tourism businesses to cater for
differing levels of demand due to the time of year. Typically these will be
the same date periods each year but may also apply for school holiday
dates and for local events where the dates vary each year.
Premium Pricing:

Adventure is an aspiration for the thrill enthusiasts. So to leverage that,

we have to tap their passion for the same and they would be willing to pay
premium for the services.

Place:
For Sikkim, we have to take a hybrid approach as it falls in the
concentrated market with less customization. Both Direct Selling and third
party involvement is required.
Through direct selling, the information about tourist places and

hotels will be directly provided on the websites while bookings.

Third part involvement is necessary as the private tourism websites

like makemytrip.com, goibibo.com, etc. are a prime

Place is not geography it is distribution channel
3 basic FMCG distribution, electronic goods distribution,
fashion goods distribution
Focus more on where the customer will purchase from rather
than the distribution structure
FMCG Kirana stores, chemists, grocery, mini-market,
supermarket, pan shops, grocery e-commerce
Electronic goods Ecommerce, experience stores, multibrand store
Fashion goods flagship store, self standing store, shop-inshop, factory outlet, Ecommerce, travel retail, - brand
corner, wall unit, open sale
Promotion:
Word of mouth:
Promotion of Sikkim Tourism will be designed to inform potential
visitors to share with the target its most attractive and innovative
attributes. Thus, it is worth stressing that the mechanism called
word of mouth remains the main method of promotion. Along with
the loyalty of customers, this unstructured means are the most
affordable, offering higher yields for small businesses at a lower
cost.
Therefore invest in quality and save on advertising is definitely the
motto.
Advertising:

We also have a rising number of so-called new tourists or

independent tourists who organize their own trips with the help of
the widely available information. For them advertisements are the
ways to grab their attention.
Creating the buzz:
Through social media pages: on Sikkim Tourism page, Incredible

India page, the tourist attraction sites and services can be

highlighted.
10 seconds clip showing the fast forward experience of the

travellers on adventure and tourism websites can grab the attention

of the Solo and group tourists.
Starting twitter handles for Tripling to Sikkim (named:

#Tripling2Sikkim) on May 16th as it was the day when Sikkim

officially became a state of the Indian Union and Lhendup Dorji
became head of State (chief minister). This will create an emotional
connect in the minds of the consumers with the state.
Players are using innovative marketing strategies to succeed in this
sector.
It can also be planned to promote Sikkim in international markets through
the print and electronic media.
Also, we can leverage the existing scheme by Indian Railways. Indian
Railways is providing various benefits to foreign tourists such as priority
reservation and Indian rail pass for train travel.
People:
In terms of hospitality, the people and the workers can be trained to
deliver excellent services and at par with industry standards across
competitors.
The service at Sikkim should be as comfortable and so, as comparable to
the competitors.
Process:
Standardised process training is to be conducted to ensure the uniformity
across all sites and locations.
Physical Evidence:
Location and site pictures in government reports is required to provide the
backbone to what is existing at present and what new and exciting is
around the corner.
The regular reports of the Tourism department can help make the visibility
of the campaign prominent.

PROMOTION:
Promotion is the process (set of means and actions) designed to inform
potential visitors about the tourism product offered, sharing with them its
most attractive and innovative attributes. As such it is usually integrated
with distribution and implies communication activities, including
advertising. But it is worth stressing that the mechanism called word of
mouth remains the main method of promotion. Along with the loyalty of
customers, the unstructured means are the most affordable, offering
higher yields for small businesses at a lower cost. Therefore invest in
quality and save on advertising is definitely the motto. On the other
hand, it is important to remember that an increasing proportion of the socalled new tourists are independent tourists who organize their own trips
thanks to the wide availability of information.
Communication and Advertising
Who? Choose the population or target audience.
What? What are the goals of the campaign? Define clear, specific and
measurable objectives.
How? What is the key message? Highlight the quality of service as most
beneficial for the tourist and a key differentiating factor. Consider relating
the quality of the service to the working conditions. The ads should be
creative, easily understood and remembered.
When? What is the right time? Define the period in which the impact of
the campaign will be most effective, and its duration. Module 3 Teaching
Notes Toolkit on Poverty Reduction through Tourism October 2012
Where? Which media and to what extent? Specify whether the message
will be disseminated by mass media or rather custom.
How much? What are the costs of the activity?
Evaluation. What results have been obtained with respect to the set
objectives? Evaluate in quantitative terms (sales), quality (reputation and
image) and purchase intentions. A campaign will be effective if it meets
the objectives assigned to it.
PLACE:
Place In relation to the marketing mix, place refers to how an organization
will distribute the product or service to the end user or consumer. The
product must be distributed at the right place at the right time. Efficient
and effective distribution is important if the organization is to meet its

overall marketing objectives. If a business underestimates demand and

consumers cannot purchase products because of it, profitability will be
affected. Distribution is the process by which the tourism product is
circulated through travel channels and agents that are in direct and
indirect contact with tourists.
Distribution Strategies:
1. Intensive distribution
Used commonly to widely distribute low priced or impulse purchase
products, e.g. chocolates, soft drinks. Module 3 Teaching Notes Toolkit on
Poverty Reduction through Tourism October 2012
2. Exclusive distribution
Involves limiting distribution to a single outlet. The product is usually
highly priced, and requires the intermediary to place much detail in its
sell, e.g. vehicles.
3. Selective Distribution
A small number of retail outlets are chosen to distribute the product.
Selective distribution is common with products where consumers are
willing to shop around (e.g. televisions) and where manufacturers want a
large geographical spread. If an exclusive or selective strategy is adopted
then a credible intermediary must be selected: one that has experience of
handling similar products and is known by the target audience.
PRICING:
Seasonal Pricing
Using a mix of pricing throughout the year to cover low, high, and
shoulder seasons is a standard way for tourism businesses to cater for
differing levels of demand due to the time of year. Typically these will be
the same date periods each year but may also apply for school holiday
dates and for local events where the dates vary each year.
Last Minute Pricing
A common method for accommodation suppliers to fill those last minute
gaps in inventory availability, last minute pricing is basically discounting
daily prices according to forward bookings and promoted on last minute
booking websites.

Common Pricing Types

Per Person pricing: A set price per person e.g Adult and

Children prices. Commonly used by activity/attraction and

transport operators or backpacker accommodation and camp
sites. Options may include an adult, child and senior citizen
price.
Per Unit pricing: A set price for 1 unit of the product e.g.

Price per night, this is the standard way to price

accommodation, usually the advertised price is for 2 people so
if the accommodation fits more than 2 guests it can have a mix
of the per person pricing with extra adult and extra child rates.
Single or double occupancy common for B&Bs there is a
single rate and a double rate (which is not double that of the
single rate).

Discounting
While discounting has its place, and often unavoidable in a competitive
market such as tourism, be very wary about continually discounting your
prices to stimulate demand it can become a rocky road to reducing
profitability or even missing that vital break-even point. Be selective with
last minute pricing deals dont make every day reduced, just select
those where you really do need extra bookings. Consider adding
conditions to a discounted price like a minimum stay or number of
travellers in the booking. While a booking is better than no booking at all,
customers do become used to a certain price level and you therefore run
the risk of not only making it hard for you to charge your normal rack
rates, but it will also devalue your product remember perception is
everything in tourism!

Package Deals
Developing packages with complimentary tourism partners in your area or
with value added components is a good way to stimulate demand without
having to discount. Strike up deals with local businesses to provide a full
package and share business with each other you should be able to get

their products or services at a net rate so the package pricing is better

than if they had purchased each component separately. Packaging can
also be used to target niche markets effectively e.g golf weekend, food
and wine tours, pampering packages etc.

Commissions
Many bookings will come via some sort of third party who will charge you
a commission such as a retail travel agent, wholesaler, inbound tour
operator or online travel agent (OTA). Many tourism operators are
tempted to add the value of the commission on to the pricing for these
providers but this should actually be considered in the setting of your rack
rates anyway if you have different pricing across different distribution
channels it just confuses both travellers and can jeopardise industry
relationships, so keep it simple.
Competitive pricing :
Discounted prices:
Discounts are often applied in the off season or to assist with yield
management and can also be useful in gaining immediate business on
websites
such
as
www.needitnow.com,
www.wotif.com
or
www.lastminute.com. Usually, discounted pricing does not differentiate a
product from the competition as it can be quickly matched by
competitors. Be cautious not to devalue your business by regularly
discounting. This is also called dynamic pricing.
Value-adding :
Value-adding is adding features to your product that enhance the
perceived value. In comparison to discounting, value-adding can create a
competitive edge and attract a greater market share. It can also help to
prevent business fluctuations for products subject to regular peaks and
troughs. Examples of product value-adding are: a purchase incentive,
such as champagne on arrival or complimentary parking; a package,
such as three nights accommodation including tickets to a particular

attraction; and bundling your products with others in the region to offer
an experience. Package pricing:
The following pricing methods are applied to packages and the most
appropriate method depends on the type of product being sold.
Disguised pricing:
Generally, discounted package components, such as accommodation,
meals, entry fees, transport, are presented as one upfront cost. This
method disguises the exact cost of individual components and also the
extent of discount provided by individual operators. In general, a
minimum of three elements should be included to disguise pricing.
Visible pricing:
By offering a range of activities, attractions and options with each
component costed at its full price, the final package cost may be too
expensive to be appealing. This can be overcome by offering a flexible
package with each component priced separately and available for
purchase individually. The customer is then able to select their preferred
package components according to their travel preferences and budget.