KTDC Marketing Project

Chapter 1
INTRODUCTION
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Introduction
There are numerous definitions for marketing and what constitutes a marketing strategy. Often
marketing is thought of only as the promotion of products, especially advertising and branding.
However, marketing has a wider meaning which recognizes that it is customer centered. A
marketing strategy is the business approach to promoting its products and services expressed in
broad terms. A marketing strategy, in turn, forms the basis of the marketing plan. The marketing
plan contains the set of specific activities required to successfully implement a marketing strategy.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Marketing strategies
are dynamic and interactive. They are partially planned and partially unplanned. Marketing
strategy involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic, cultural or
political environment likely to impact success. Once a thorough environmental scan is complete,
a strategic plan can be constructed to identify business alternatives, establish challenging goals,
determine the optimal marketing mix to attain these goals, and detail implementation. A final step
is to create a plan to monitor the progress and to set alternative plans if a problem arises during the
implementation of the plan.
1.1 Background of the problem
KTDC has been playing a key role in the development of infrastructure facilities required by the
rapidly growing tourist traffic into the State of Kerala and has been the prime mover in the
progressive development, promotion, and expansion of tourism in the State. Apart from developing
the largest hotel chain in Kerala, KTDC offers tourism related facilities like conducted tours,
boating, tourist reception centers, centralized/online reservations, conventional services,
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customized tour packages etc. KTDC uses marketing campaigns, brochures, social media
marketing etc to market its products. KTDC also gives training to employees so that a standardized
service is given for its customers. This is done as a part of internal marketing. KTDC uses a
marketing strategy which is distinctive from its competitors. But how far the marketing strategy is
effective is uncertain. This project evaluates the efficacy of marketing strategy of KTDC and
thereby suggesting a suitable marketing plan.
1.2 Industry profile
Tourism is considered as an agent of social change bridging gaps among nations, regions, and
people and helping them to open up. It is a promoter of development- material and spiritual both
at macro and micro level. The World Tourism Organization defines tourists as people traveling to
and staying in places outside their usual environment for not more than one consecutive year for
leisure, business, and other purposes.
Table 1.1: Industry profile
Output per annum Increased 7 % per annum

Percentage in world market 6.5% share
Market Capitalization 6.23% of GDP
Tourism is important, and in some cases, vital for many countries. It was recognized in the Manila
Declaration on World Tourism of 1980 as an activity essential to the life of nations because of its
direct effects on the social, cultural, educational, and economic sectors of national societies and
on their international relations. Tourism brings in large amounts of income in payment for goods
and services available, accounting for 30% of the world's exports of services, and 6% of overall
exports of goods and services. It also creates opportunities for employment in the service sector of
the economy, associated with tourism. These service industries include transportation services,
such as airlines, cruise ships, and taxicabs; hospitality services, such as accommodations, including
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hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping malls,
music venues, and theaters.
1.2.1 Tourism in India
India is the second-fastest growing tourism market in the world. Tourism in India is the largest
service industry contributing up to 6.23 percent to the National Gross Domestic Product (GDP)
and providing 8.78 percent of the total employment opportunity in India. It is also the second
largest sector in the country providing employment opportunities for low-skilled people. India's
travel and tourism industry are one of the most profitable industries in the country. It is also
credited with contributing a substantial amount of foreign exchange to the exchequer. Indian is a
land of vast tourism opportunities as it is comprised of different cultures, traditions, festivals, and
places of interest. The country is one of the favorite tourist destinations around the world,
according to world travel and tourism Council (WTTC). Further, the Travel and Tourism
Competitiveness Report by World Economic Forum has ranked India at the sixth place in tourism
and hospitality. India provides the facility to Tourists of international origin to understand and
experience the cultural diversity of the country. According to Indian official estimates, the tourism
in India has outperformed the global tourism industry in accordance with the growth, the volume
of foreign tourists & even the revenue. India witnesses about more than 5 million annual foreign
tourist arrivals and 562 million domestic tourism visits. Indian Tourism Industry generated about
US$100 billion in 2008 which is expected to increase to US$275.5 billion by 2018 at a 9.4% annual
growth rate. The Campaign of "Incredible India" is developed by the Ministry of Tourism is used
for the promotion of tourism in India.
Tourism products offered by India

1. Cruise tourism
2. Adventure tourism
3. Medical tourism
4. Wellness tourism
5. Golf tourism
6. Polo tourism
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7. Meetings incentives conferences and exhibition
8. Film tourism
9. Ecotourism
Domestic media campaigns, international campaigns, national tourism awards, international

accolades, participation in travel fairs and exhibition, road shows, food festivals, printing of
brochures, outdoor publicity by advertising on taxis, buses, trains, hoardings and billboards are
some of the publicity and marketing techniques adopted by Ministry of tourism, Government of
India. Each state further has its own publicity and marketing techniques. E.g.: Kerala- Gods own
country campaign, Madhya Pradesh- Hindustan Ki Dil Dekho campaign etc Role of Ministry of
Tourism The Ministry of Tourism plays a crucial role in formulating national policies and
programs as well as coordinating and supplementing the efforts of the State/Union Territory
Governments and private sector in improving the quality of tourism Industry. As regards the
domestic market, the Ministry aims to popularize the culture and natural beauty of different
regions, pilgrim sites, and various new tourism products.
The Ministry has a public sector undertaking namely the India Tourism Development Corporation
(ITDC) for carrying out its various functions, along with the following autonomous institutions: -
1. Indian Institute of Tourism and Travel Management (IITTM)

2. National Institute of Water Sports (NIWS) has merged with IITTM
3. National Council for Hotel Management and Catering Technology (NCHMCT)
4. Institutes of Hotel Management (IHM)
The foreign direct investments (FDI) of Indian hotel and tourism industry which contributes to the
Indian economy inflows are US$ 2.1 billion from April 2000 to March 2010, according to the
Department of Industrial Policy and Promotion (DIPP). Indian Export earnings from international
visitors and tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2019.
Furthermore, the sector which accounted for 6.4% of total employment in 2009 is estimated to rise
to 7.2% of total employment by 2019. The tourism industry in India holds tremendous potential
for India's economy which eventually provides impetus to other industries, creates millions of new
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jobs and generates enough wealth to help pay off the international debt. This is the main reason
that today it is included that Tourism is amongst the Core Sectors of the Indian Economy. Indian
Tourism Industry has got a major boost because of the booming IT and outsourcing industry with
increased number of business trips made by foreigners to India, who will often add a weekend
break or longer holiday to their trip. They spend more time here in India than almost any other
country worldwide.
1.2.2 Tourism in Kerala
Kerala state is considered as one of the ten paradises in the world. In more ways than one, Kerala
takes the credit for being the first state in India to comprehend the significance and importance of
positioning and branding in the sphere of tourism. From being a non-entity in the mid-1980s,
Kerala today has evolved into an Indian tourist's super brand and the country’s most premium
holiday destination. Kerala’s worldwide success represents the triumph of vision, professionalism
and public-private partnerships in the volatile and turbulent world of tourism.
Brief history
Kerala initiated tourism development programs by establishing an international beach resort at

Kovalam in 1976 with the patronage of the central government. Realizing the economic potentials,
Government of Kerala declared tourism as an industry in 1986. Within a short span of two and
half decades, Kerala succeeded in establishing its tourism brand in the international market. The
first tourism policy of the state was announced in 1995 underlining the importance of Public
Private Partnership. Tourism has come a long way since then, capturing new markets with its
innovative products and marketing strategies. From hardly 50000 foreign tourist arrivals and 0.13
billion rupees as foreign exchange in 1986, it has reached a status of 0.6 million foreign tourist
arrivals and 37.97 billion rupees as foreign exchange in 2010. Total employment generated from
tourism is estimated as 1.2 million.
Tourism development organizations
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The flagship of the tourism industry in Kerala is Department of tourism, Government of Kerala.
Kerala Tourism Development corporation (KTDC), Bekal Resorts Development Corporation
(BRDC), Tourists Resorts Kerala Ltd (TRKL), District Tourism Promotion Council (DTPC),
Kerala Institute of Travel and Tourism Management Studies (KITTS), Kerala Institute of
Hospitality Management Studies (KIHMS), Thenmala Ecotourism Development Agency and a
host of Government Departments such as forest and wildlife, irrigation, museum, zoo and
archaeology are other important state-sponsored institutions which play key role in Tourism sector
of Kerala. Besides, there are numerous agencies working in the semi-government and private
sectors for the promotion of Kerala Tourism.
Role of KTDC in tourism development
KTDC plays a prominent role in the tourism sector of Kerala. Kerala had been an unknown
destination till the 1980s. The aggressive marketing of KTDC laid the foundation for the growth
of tourism industry and transformed Kerala into one of nice holiday destination. The tagline Kerala
Gods own country used in its promotions became a global super brand. God's own country is
perhaps the most powerful positioning statement for an Indian destination. Kerala started an
aggressive print campaign in the late 1980s. The turning point, however, happened when National
Geographic Traveler, after extensive research spanning two years, brought out a special issue on
the 50 destinations of a lifetime the only destination that featured from India was Kerala. The first
ever television commercial done by tourism board in India captured the magic of Kerala and
differentiated it from other states. Kerala also became the first tourism board in India to venture to
advertise on the internet. Tourist season of Kerala starts from September to May. Kerala is famous
for beaches, backwaters, mountain ranges, wildlife sanctuaries, hill stations, Ayurveda, culture, art
forms, festivals etc. Kerala has also launched shopping festivals, the first biennale in India,
International choir fest etc as an innovative method to get more publicity. The state promotes
ecologically sustained tourism, which focuses on the local culture, wilderness adventures,
volunteering and personal growth of the local population. Efforts are taken to minimize the adverse
effects of traditional tourism on the natural environment and enhance the cultural integrity of local
people. Kerala has set an example for other Indian states by pursuing a visionary approach in
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tourism; by pushing doors open rather than waiting for the doors to open, by being truly authentic
in the experience it offers, by building relationships worldwide and by thinking globally and acting
locally.
1.3 Introduction to the company
KTDC Hotels and Resorts Limited (KTDC) was incorporated on 29 December 1965 as a private
limited company with its registered corporate office situated at Mascot square, Trivandrum. The
initial name of the company was Kerala Tourist and Handicrafts Corporation Private Limited. It
was then changed to Kerala Tourism Development Corporation Limited from 15 July 1970 and
later as KTDC Hotels and Resorts Limited from 07 October 2010 and now it is KTDC. KTDC has
been playing a key role in the development of infrastructure facilities required by the rapidly
growing tourist traffic into the State of Kerala and has been the prime mover in the progressive
development, promotion, and expansion of tourism in the State. Apart from developing the largest
hotel chain in Kerala, KTDC offers tourism related facilities like conducted tours, boating, tourist
reception centers, centralized/online reservations, conventional services, customized tour
packages etc. KTDC, the state’s premier destination developer, owns over 60 properties ranging
from luxury hotels to budget hotels and motels, Yatri Nivases and restaurants, KTDC aptly
qualifies as the official host to Gods own Country. The premium properties of this largest hotel
chain in the state are located in the most picturesque theme destinations of Kerala. KTDC also
offers Ayurveda centers, cultural entertainment and the best of Kerala’s cuisine at all its major
establishments. KTDC offers comprehensive holiday package Exclusive Escapades offers holiday
packages that are set in the premium properties of KTDC. As a pioneering tourism development
corporation, KTDC has also introduced innovative concepts like insured holiday and rail holidays,
which provide a complete Kerala package. Kerala Tourism Development Corporation (KTDC) is
the most successful public sector undertaking The KTDC group of hotels has already stamped the
power in term of quality, marketing and hospitality. Even at the time of recession, Kerala though
showed a dim effect in the Kerala tourism field but was far ahead when compared to another state,
KTDC too showed the growth and from then on there was no look back. KTDC, the largest hotel
chain which includes a range of luxury and economy resorts, hotels, and motels located in the heart
of some of Kerala’s most acclaimed destinations. The company aims to be the major player in the
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development of tourism infrastructure in the state. It provides elegant accommodation and better
quality services in KTDC hotels and restaurants. It tries to achieve high levels of productivity of
employees by better training, motivation, and HRD techniques. It also promotes eco-friendly and
sustainable tourism and also tourism products. The company primarily focuses on building up
capacities to handle increasing own of tourists into Kerala in a planned manner. The brands and
products of the company include heritage hotels, premium hotels, Tamarind easy hotels, motels,
restaurants, central reservation center, shopping complex and water sports. Beer parlors are on a
lease basis. KTDC has 3 regional offices north Calicut, central Kochi, and south Trivandrum.
1.3.1 Mission
To provide leadership and play a catalytic role in the development of tourism infrastructure in the
State and to achieve excellence in strategic business operations through professionalism,
efficiency, value for money and customer satisfaction.
1.3.2 Vision
To make KTDC the official host to Gods own country, the best service provider in the hospitality
industry with basic infrastructure and state-of-the-art facilities, focusing on environment
conservation and preservation, adding impetus to local supplies and human resources and thereby
positioning as a Premier PSU in the hospitality sector in Kerala.
1.3.3 Key objectives
1) To be a major player in the development of tourism infrastructure in the State.
2) To treat the tourists as our Guests (Adhidhi Devo Bhava) and ensure customer delight
by providing value for money.
3) To provide elegant accommodation and better quality services in KTDC Hotels and
Restaurants.
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4) To function as an efficient corporate house with improved productivity levels and profit
margins.
5) Achieve high levels of productivity of its employees by way of better training,
motivation and HRD techniques.
6) To empower the host population through responsible tourism.
7) To promote and market our products at National and International level and thereby
making Kerala as a premier Global tourism destination.
8) To promote sustainable and eco-friendly tourism in the state based on the carrying
capacity of the destinations.
9) To conserve, preserve the art, culture, and heritage of the State.
10) To promote new innovative tourism products, lesser-known destinations.
11) To provide transport, entertainment, shopping, convention and recreational services.
12) To render consultancy and managerial services in the hospitality industry.
13) To undertake pioneering efforts for destination development.
14) To play an active role in association with the State Tourism Department/ Directorate
in conceptualizing and execution of tourism projects, publicity, promotion, and training.
Brands and products
Heritage Hotels
1. Lake Palace, Thekkady.

2. Bolgatty Palace, Kochi.
Premium Hotels
1. Mascot Hotel, Thiruvananthapuram.

2. Hotel Samudra, Kovalam.
3. Waterscapes, Kumarakom.
4. Aranya Nivas, Thekkady.
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5. Tea County, Munnar.
6. Bolgatty Island Resort, Kochi.
7. Marina House, Kochi.
Budget Hotels
1. Hotel Chaithram, Thiruvananthapuram.

2. Periyar House, Thekkady.
3. Garden House, Malampuzha.
4. Nandanam, Guruvayoor.
5. Mangalya, Guruvayoor.
7. Pepper Grove, Sulthan Bathery.
8.Golden Peak, Ponmudi
Tamarind Easy Hotels
1. Tamarind Easy Hotel, Neyyardam.

2. Tamarind Easy Hotel, Kollam.
3. Tamarind Easy Hotel, Changanasery.
4. Tamarind Easy Hotel, Alappuzha.
5. Tamarind Easy Hotel, Peermade.
6. Tamarind Easy Hotel, Thrissur.
7. Tamarind Easy Hotel, Guruvayoor.
8. Tamarind Easy Hotel, Mannarkadu.
9. Tamarind Easy Hotel, Nilambur.
10. Tamarind Easy Hotel, Kondotty.
11. Tamarind Easy Hotel, Thirunelly.
12. Tamarind Easy Hotel, Kannur.
13. Tamarind Easy Hotel, Parasinikkadavu
Motels
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1. Motel Araam, Kottarakkara.
2. Motel Araam, Palaruvi.
3. Motel Araam, Punalur.
4. Motel Araam, Kayamkulam.
5. Motel Araam, Alappuzha.
6. Motel Araam, Vaikom.
7. Motel Araam, Athirappally.
8. Motel Araam, Erumayur.
9. Motel Araam, Vadakara.
10. Motel Araam, Kuttipuram.
11. Motel Araam, Kannur.
Restaurants
1. KTDC Restaurant, Veli, Thiruvananthapuram.

2. KTDC Restaurant, Museum, Thiruvananthapuram.
3. Anantha Restaurant, New Delhi.
Others
1. Central Reservation Centre, Thiruvananthapuram.

2. Tourist Reception Centre, Thiruvananthapuram.
3. Tourist reception Centre, Ernakulam.
5. Shopping Complex, Shanmugam Road, Ernakulam.
6. Watersports, Veli.
Budget Hotel
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1.Malabar Mansion, Kozhikode.
Restaurant & Beer Parlours
1. Karamana, Thiruvananthapuram.
2. Peyad, Thiruvananthapuram.
3. Statue, Thiruvananthapuram.
4. Balaramapuram.
5. Kazhakuttam.
6. Varkala.
7. Attingal.
8. Harippad.
9. Karukachal
10. Muvattupuzha.
11. Kanjikode, Palakkad.
12. Kozhinjampara, Palakkad.
13. Ramanattukara.
14. Changaramkulam.
15. Koyilandy.
16. Payyannur.
17. Kanhangad, Kazarcode.
18. Kannur.
1.4 Research methodology
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While conducting a research there are two ways of approaching the same.
They are
1) Qualitative research method
2) Quantitative research method.
Quantitative research method
Quantitative research method emphasizes quantification in the collection and analysis of the
information. The aim is to gather numerical evidence where conclusions can be drawn from or
they can be used to test hypotheses. In order to get reliable results, it is necessary to study relatively
large sample group and use a computer to analyze the collected information. The information is
derived from questionnaire surveys, secondary sources and from observation involving counts.
Qualitative research method
Qualitative research method, on the contrary, does not involve numerical data but emphasizes
words rather than numbers. This method uses only a small sample group; the primary information
is gathered from a small number of people. The information gathered cannot usually be presented
in numerical form. This research method is used when a full understanding of the sample group is
required. The information is derived from observation, informal and in-depth interviewing and
participant observation. A description of the research plan for the present study is discussed as
under A study on the internal perspective of marketing strategies implemented by KTDC was
conducted at KTDC situated in Trivandrum and the study covers the marketing department which
has a major role in designing and executing marketing strategies. The means of collecting data is
through secondary and primary data collection methods. Primary data was collected from the
organization through personal visit, questionnaire, interviews, and discussions with important
executives and staff members of various departments. The variables used in the questionnaire
includes brand, market, messages, marketing channels, marketing tactics, creative approaches,
offers, sales tools, and website. This helped to give an overall view of marketing activities carried
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out in KTDC. The secondary data have been obtained from the company website, brochures etc.
The brief history of KTDC, its functions, products offered and strategic intent of company was
obtained from the company website.
1.4.1 Objectives of study
KTDC uses a marketing strategy to differentiate it from its competitors, but how far it is
effective is uncertain. The objective of the study are
1. To evaluate the marketing strategy of KTDC

2. To find out the marketing policy adopted by KTDC
3. To examine the marketing policy related to promotional activities of KTDC
4. To find out the threat involved in marketing policy of KTDC
5. To suggest suitable marketing policy
1.4.2 Research design
A research design is a master plan, which specifies various methods and procedure for
collecting and analyzing the needed information. Descriptive research design is followed.
Sample size 50
Sampling method Convenience sampling
Sampling unit Managers and officers of various departments in KTDC
Nature of data Primary & secondary data
Place of study KTDC hotels & resorts Ltd, Trivandrum
1.4.3 Sources of data
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The sources of data include primary and secondary.
Primary data
The primary data was collected by means of a survey. Questionnaires were prepared and given to
executives and staffs of various departments. The questionnaire contains 25 questions which cover
various aspects of marketing strategy like brand, market, messages, marketing channels, marketing
tactics, creative approaches, offers, sales tools, data, and website. The response of the sample was
recorded on a grade scale of strongly agree, agree, neutral, disagree and strongly disagree for each
question. The filled up information was later analyzed to obtain the interpretations and the
findings.
Secondary data
The data was collected from websites, journals, reference books, company records, and brochures.
1.4.4 Statistical analysis tools used
The various statistical tools used for the analysis and interpretation of the
data are
1) Percentage analysis
1.4.5 Period of study
The study was conducted over a period of ten days from
1.4.6 Hypothesis
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Hypothesis 1
H0: There is no significant difference between the efficiency of marketing channels and marketing
strategies of KTDC
H1: There is significant difference between the efficiency of marketing channels and marketing
strategies of KTDC
Hypothesis 2
H0: There is no significant difference between gender and opinion about marketing strategies of
KTDC
H1: There is significant difference between gender and opinion about marketing strategies of
KTDC
Hypothesis 3
H0: There is no significant difference between marketing tools and marketing strategies adopted
by KTDC
H1: There is significant difference between marketing tools and marketing strategies adopted by
KTDC
Hypothesis 4
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H0: There is no association between the opinion about integrating social media into traditional
marketing tactics like direct mail and advertising
H1: There is association between the opinion about integrating social media into traditional
marketing tactics like direct mail and advertising
Hypothesis 5
H0: There is no association between the opinion that sales tools are integrated with brand and
marketing campaigns
H1: There is association between the opinion that sales tools are integrated with brand and
marketing campaigns
1.4.7 Scope of study
In every company, the preparation of a marketing plan is vital for monitoring and tracking of the
company’s marketing strategies for a certain product or service. The marketing plan helps to
monitor the progress of marketing strategy that is being implemented. Analysis of marketing
strategy helps to find out major competitors, which would enable the firm to offer its appropriately
designed marketing mix and thereby achieving firm’s objective. A well-defined marketing strategy
can clearly describe which market segments to serve and which to exclude, what product to serve
and what not to serve. So the marketing strategy has a vital role in the success of an organization.
KTDC has a significant role in the growth of Kerala tourism industry by formulating effective
marketing strategies. This study will evaluate the marketing strategies implemented in KTDC, to
find out the various marketing policies used by them, to know its effectiveness and to suggest
suitable policy for the company.
1.4.8 Limitation of study
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1.The time frame given for the study is limited.
2.The study is based on qualitative analysis and hence results may be biased.
3.Detailed information about the company was not be provided, in order to keep secrecy of
company policies
1.5 Chapterisation
Chapter 1 discusses the background of problem, industry profile, company profile, research
objectives, research methodology, scope and limitation of the study. Chapter 2 gives in-depth
information about the literature reviewed for the study. In Chapter 2 the topics discussed include
marketing, marketing mix, marketing segmentation, relationship marketing, marketing strategy,
strategic role of marketing, elements of marketing strategy, types of marketing strategy, marketing
strategy formulation and marketing strategy implementation. Chapter 3 presents the data collection
and analysis. The statistical tools used is Percentage analysis method. Chapter 4 presents the
findings, suggestions for the study and gives a brief conclusion of the project.
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Chapter 2
REVIEW OF LITERATURE
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Literature review
Marketing is often thought to be only selling and advertising. However, marketing consists of
many other functions that can be seen far more important than just the exchange of goods (Kotler,
1997). The American Marketing Association defines marketing as follows: Marketing is the
activity, set of institutions, and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners, and society at large. Today, more than
ever, marketing has put emphasis on satisfying the customer needs. The customer tends to make
decisions on buying a product or a service based on their perception of the value and satisfaction
that the product or service delivers. From the company’s point of view, the goal of marketing is to
first build and then manage profitable customer relationships. In order to achieve this it is not
enough only to first market the product and then sell it but make sure that the product being sold
will meet the standards and be enough to fulfill the customers’ expectations. Therefore, the
company must be aware and understand their customers; their needs wants and demands. That is
why many companies put a lot of effort and money into making different kinds of customer surveys
analyzing their customer’s behavior and learning about the different way of delivering the superior
customer value and satisfaction (Kotler, 1997)
2.1 Marketing mix
The marketing mix is one of the major concepts in modern marketing and is often brought up in
general discussions of marketing. The marketing mix is a set of marketing tools that a company
uses to pursue its marketing objectives in the target market. When a company is making decisions
on marketing they generally fall into four controllable categories known as the 4 Ps: product, price,
place and promotion (Kotler, 1997).
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2.2 Market segmentation
In marketing, it is almost impossible to succeed by handling all the consumers as a big one size
fits for all mass. Market segmentation recognizes that people differ in many ways like in their
needs, attitudes, and lifestyles. Through market segmentation companies divide their market into
smaller segments. All of the segments have specific needs and by dividing the market those needs
can be met more efficiently with products and services that match their unique needs. Choosing
the right target market is essential and often not that easy. When defining a target market for a
product there should be three separate levels. The first level consists of consumers that are willing
to buy and who also have the best premises to buy. The second level consists of consumers who
have the premises to buy but not necessarily the desire. The third level consists of consumers who
are not able to buy but who should be monitored in case there is a change in their buying readiness
(Kotler, 1997). There are many ways to segment a market. Different segmentation variables are
used, both alone and together, in order to classify consumers into different segments. Kotler
defines four major variables that are generally used in marketing; geographic, demographic,
psychographic and behavioral variables.
2.2.1 Geographical segmentation
Geographical segmentation divides the market into different geographical units such as cities,
regions, countries or climate and population density. By this way when a company is deciding
which units to operate and market, they can pay attention to geographical differences in needs and
wants. For example, a major clothing store chain can pay attention to their selection in stores in
northern areas where it is colder and the need for warmer clothes is greater than in areas located
more south (Kotler, 1997)
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2.2.2 Demographic segmentation
Demographic segmentation consists of dividing the market into groups based on variables such as
age, gender, family size, income, occupation, education, religion, race, and nationality.
Demographic factors are the most popular bases for segmenting customer groups. This is partly
because customer wants are closely linked to variables such as income and age. Also, for practical
reasons, there is often much more data available to help with the demographic segmentation
process (Kotler, 1997).
2.2.3 Psychographic segmentation
Psychographic segmentation divides the market into different groups based on social class,
lifestyle or personality characteristics. People can be in the same geographical segment meaning
that they may, for example, live in the same city; they can even be of same age. But one may be a
student and another a worker. This affects their lifestyles greatly and therefore also has an effect
on the buying behaviors of the people (Kotler, 1997).
2.2.4 Behavioral segmentation
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses and
responses to a product. Behavioral segmentation has the advantage of using variables that are
closely related to the product itself. When a company knows when and why customers are buying
their products, they can link their marketing to that. For example, some holidays like on
Valentine’s Day or at Christmas people tend to buy certain things related to the occasion; many
companies prepare special offers and advertisements for those holiday occasions. (Kotler, 1997)
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2.3 Relationship marketing
Relationship marketing is a form of marketing that emphasizes customer retention and satisfaction.
It switches the focus from the recruitment of new customer to the retention and recovery of existing
ones. Relationship marketing differs from other forms of marketing in that it recognizes the long-
term value of customer relationships and extends communication. The world of marketing today
is more customer-centered. As companies must compete in a more competitive marketplace they
have to know their customers? needs and wants in order to get new customers, then keep and grow
them by delivering greater value for them (Piercy and Nigel, 2000) When planning a relationship
marketing strategy one must take into account that not all customers want a relationship with the
company. That is why it must be carefully considered which types of customers are usually more
likely to repeat their visit to a hotel or a restaurant. Some customers are aware of the wide choice
of competitor products and services and do not want to limit their options and tie themselves only
to one company but prefer to switch their custom accordingly. Other customers are not interested
in any type of relationship with any company; they simply look at the best quality, value, and
convenience available at the time of purchase (Davis, 2007).
2.4 Introduction to marketing strategy
Marketing strategy includes all basic and long-term activities in the field of marketing. It deals
with the analysis of the strategic initial situation of a company, the formulation, evaluation, and
selection of market-oriented strategies. Therefore it contributes to the goals of the company and
its marketing objectives. Strategic planning is a process of developing and maintaining a link
between the organization's goals and capabilities and its changing marketing opportunities. The
marketing strategy is shaped by the overall business goals meaning that it broadly explains what
actions are required to achieve the goals and objectives. The marketing strategy can be thought of
as a game plan that outlines, often in a list form factors such as the target market, positioning,
distribution channels, price, advertising and possible research and development.
2.5 Marketing strategy
24
According to (Kotler, 1997), The marketing strategy is the way in which the marketing function
organizes its activities to achieve a profitable growth in sales at a marketing mix level. A
marketing strategy may be defined as a plan (usually long term) to achieve the organization's
objectives as follows...
a) By specifying what resources should be allocated to marketing.
b) By specifying how these resources should be used to take advantage of opportunities which are
expected to arise in the future. A marketing strategy would consist of the following:
a. Identifying markets and customers’ needs in those markets.
b. Planning products which will satisfy the needs of these markets.
c. Organizing marketing resources, so as to match products with customers in the most efficient
and effective way possible, i.e., so as to maximize customer satisfaction and the organization's
profits or sales revenue (or whatever its objectives are at the same time).
Choosing the right target market is essential and often not that easy. When defining a target market
for a product there should be three separate levels. The first level consists of consumers that are
willing to buy and who also have the best premises to buy. The second level consists of consumers
who have the premises to buy but not necessarily the desire. The third level consists of consumers
who are not able to buy but who should be monitored in case there is a change in their buying
readiness (Kotler, 1997). Positioning is the act of designing the company’s offering so that the
services and products are based on some core idea or benefit. Its meaning is to create a competitive
angle toward the competitors so the positioning of a product can be based for example on the best
or quickest service, accessibility or affordability. This way the product occupies a clear, distinctive
and desirable place relative to competing products in the minds of the target customers. Marketing
strategy is mainly indicated by the marketing objectives, customer and competitive perspectives
and product/market momentum (i.e. extrapolation of past performance to the future). This forms
the basis of marketing strategy. Marketing strategy is developed at the business unit level (Kotler,
1997).
2.5.1 3 Cs of marketing strategy
25
Within a given environment, marketing strategy deals essentially with the interplay of three forces
known as the strategic 3 Cs namely the Customer, the Competition and the Corporation (Davis,
2007).
A good marketing strategy should be characterized by
a) Clear market definition

b) A good match between corporate strengths and the needs of the market
c) Superior performance, relative to the competition, in the key success factors of the business.
Marketing strategy, in terms of these key constituents, must be defined as an endeavor by a

corporation to differentiate itself positively from its competitors, using its relative corporate
strengths to better satisfy customer needs in a given environmental setting. Based on the interplay
of the strategic three Cs, the formation of marketing strategy requires the following 3 decisions:
1. Where to compete. (definition of the market). One or various segments.
2. How to compete, that is, it requires a means for competing.
3. When to compete, that is, it requires timing of market entry (Lambin and Jean-Jacques, 2000).
2.6 Strategic role of marketing
In its strategic role, marketing focuses on a business intention in a market and the means and timing
of realizing those intentions. The strategic role of marketing is quite different from marketing
management which deals with developing, implementing and directing programs to achieve
designated intentions. To clearly differentiate between marketing management and marketing in
its new role, a term strategic marketing. Has been coined to represent the latter (Gale et al., 1980).
Strategic marketing is seen as a process consisting of analyzing environmental, market
competitive and business factors affecting the corporation and its business units, identifying
market opportunities and threats and forecasting future trends in business areas of interest for the
enterprise, and participating in setting objectives and formulating corporate and business unit
26
strategies. It also includes selecting market target strategies for the product markets in each
business unit, establishing marketing objectives as well as developing, implementing and man-
aging the marketing program positioning strategies in order to meet market target needs. (Gale et
al., 1980) Strategic marketing means looking at the whole of a company’s portfolio of products
and markets, and managing the portfolio to achieve the company’s overall goals (Jain and Girish,
1993) Although definitions for the term vary, (Hamper and Baugh, 1990) define marketing strategy
as a consistent, appropriate and feasible set of principles through which a particular company hopes
to achieve its long-run customer and profit objectives in a particularly competitive environment.
The primary purpose of a marketing strategy is to effectively allocate and coordinate marketing
resources and activities to accomplish the firm’s objectives within a specific product market.
Therefore, decisions about the scope of a marketing strategy involve specifying the target market
segment to be pursued and the product line to be offered. Then, firms seek a competitive advantage
and synergy, planning a well-integrated program of marketing mix elements (Boyd et al., 1998).
Marketing strategy creates pathways to a desirable future. The output from such marketing strategy
analysis and choice (or strategic marketing decision) is a marketing strategy statement. The
strategic analysis of marketing makes reference to the future situation of products and markets,
(Prahalad et al., 2004), that is to say, that it tries to guide the company by the correct path and
where the company should be in the future. It is also important to define clearly what should be
interpreted as product and for markets and this is important because marketing strategies are open
to interpretations (Piercy and Nigel, 2000). Traditional definitions can be broken by new variables
that contribute to redefining markets and products. These variables can be technology, Internet,
changing consumer’s attitudes, social changes, etc. The term marketing strategy reflects the
company’s best opinion as to how it can most profitably apply its skills and resources to the
marketplace. It is inevitable broad in scope. Marketing strategies are the means by which a
company achieves its marketing objectives and are usually concerned with the 4 p's. (McDonald,
1999).
2.7 Elements of marketing strategy
27
A marketing strategy is made of several interrelated elements. The first and most important is a
market selection which is directly related to choosing the markets to be served (Brown and
Sommers, 1982). Product planning includes the specific products the company sells, the makeup
of the product line, and the design of individual offerings in the line. Another element is the
distribution system: the wholesale and retail channels through which the product moves to the
people who ultimately buy it and use it. The overall communications strategy employs advertising
to tell potential customers about the product trough radio, television, direct mail, and public print
and personal selling to deploy a sales force to call on potential customers, urge them to buy, and
take orders. Finally, pricing is an important element of any marketing program and is one of the
most directed marketing elements in the creation of value for shareholders (Doyle, 2000). The
company must set the product prices that different classes of customers will pay and determine the
margins or commissions to compensate agents, wholesalers, and retailers for moving to the product
to ultimate users. The External, market orientation must be kept in mind since the companies are
guided to the market in a regular way. Reliable data in the strategic analysis has bigger possibilities
of success and bigger chances of optimizing their results. (Aaker, 2004) Other issues to take into
consideration and which influence in marketing strategies are: the understanding of growth
markets and Market Share, managing international realities, implicating empirical research,
utilization of methodological developments, for example, portfolio models, experience curves,
scenario analysis, market structure analysis and technological forecasting; and finally getting into
interdisciplinary developments, including marketing, organizational behavior, finance and
accounting, economics, strategy. (Aaker, 2004)
2.8 Types of marketing strategy
(Sahaf, 1993) has mentioned six strategies that can help a leader attain the objective of
market share protection. They are
2.8.1 Position defense
28
In this strategy, a leader attempts to protect its existing market share through fortification wherein
the leader erects barriers around him to stop competitors. The barrier can be in the form of a firm’s
distinctive skills capabilities and marketing assets that not only have greater significance for the
customers but also are difficult for the competitors to copy.
2.8.2 Mobile defense
This involves constantly shifting resources and developing new strategies and tactics. A mobile
defense is intended to create a moving target that is hard to successfully attack, while
simultaneously, equipping the defender with a flexible response mechanism should an attack
occur. In business this would entail introducing new products, introducing replacement products,
modifying existing products, changing market segments, changing target markets, repositioning
products, or changing promotional focus. This defense requires a very flexible organization with
strong marketing, entrepreneurial, product development, and marketing research skills.
2.8.3 Flank position
This involves the redeployment of your resources to deter a flanking attack. You protect against
potential loss of market share in a segment, by strengthening your competitive position in this
segment with new products and other tactics.
2.8.4 Counteroffensive
Counteroffensive defense refers to the response of a market leader to a real attack by a competitor.
In fact, these defensive calls for a leader to respond to a competitor’s head on attack by identifying
the attacker’s weakness and then launch a counter attack. Generally, a leader actively responds to
any move of his competitors. An effective counterattack is to invade the attacker’s main territory
so that it will have to pull back some troops to defend the territory. Generally, counteroffensive
defense works when the attacker has become vulnerable as a result of the over-stretching of
resources.
29
2.8.5 Preemptive defense
A preemptive defense strategy demands to attack potential aggressor before he starts his offense.
By pursuing preemptive defense strategy, a firm intends to convey let it be known how it will
retaliate. Thus such a strategy aims to create a threat which will prevent any potential challenger
from attacking in the first place. In business, the preemptive defense can involve an actual attack
on the competition or merely signaling an intention to fight on a particular front and a willingness
to commit the necessary resources to defend against aggression. Product or brand proliferation is
a form of preemptive defense.
2.8.6 Contraction defense
A contraction defense, or strategic withdrawal, requires giving up untenable ground to reduce over
stretching on the core business which can be defended against attack. In fact, such a strategy calls
for a withdrawal from the most vulnerable segments and redirect resources to those that are more
defendable.
2.9 Marketing strategy formulation
A company should not only know own company but also the behavior of the competitor’s potential
and the capacity to add and remove it in products, segments, markets, distribution channels, etc.
From my point of view one of the clearest indicators that a company thinks, and it acts with the
mentality of strategic marketing it is the level of depth that makes of its competitors. (Alexander,
1985) (Bantel, 1997) suggests that particular product/market strategies are effective at achieving
particular performance goals to the exclusion of others. The synergies between strategy types and
implementation capabilities exist and should be exploited. Creating marketing synergy means that
you have a marketing plan where each element of your plan complements another. The total effect
achieved is greater than the sum of the individual effects. Synergy creates greater power and
energizes company's marketing efforts. According to (Hrebiniak, 2006)) formulating a consistent
30
strategy is a difficult task for any Management team and making that strategy work (implementing
it throughout the Organization) is even more difficult. he also pointed out that managers know
more about developing a strategy than they do about executing it. One of the basic problems he
quoted that managers are trained to plan, not execute plans. Another problem is that some top level
managers believe strategy implementation is below them', something best left to lower level
managers. According to (Noble, 1999), a myriad of factors can potentially affect the process by
which strategic plans are turned into organizational action. Unlike strategy formulation, strategy
implementation is often seen as something of a craft, rather than a science, and its research history
has previously been described as fragmented and eclectic. Leadership, and specifically strategic
leadership, is widely described as one of the key drivers of effective strategy implementation.
However, a lack of leadership and specifically strategic leadership by the top management of the
organization has been identified as one of the major barriers to effective strategy implementation.
Strategic leadership is defined as the leader's ability to anticipate, envision, and maintain flexibility
and to empower others to create strategic change as necessary. Strategic leadership is multi-
functional, involves managing through others, and helps organizations cope with change that
seems to be increasing exponentially in today's globalized business environment.
2.10 Marketing strategy implementation
Great strategies are worth nothing if they cannot be implemented. Strategy implementation is
important but difficult because implementation activities take a longer time frame than
formulation, involves more people and greater task complexity, and has a need for sequential and
simultaneous thinking on part of implementation managers. Strategy formulation and
implementation are complementary and logically distinguishable areas of strategic management
and part of the overall process of planning executing and adapting. Good implementation naturally
starts with good strategic input: the soup is only as good as the ingredients. Whether a strategy
itself is consistent and fitting or not is a key question for successful strategy implementation, but
even a consistent strategy cannot be all things to all people. Strategy programs need to be expanded
to focus on the implementation process. More attention should be given to breaking down lofty
statements into practical, actionable, measurable activities. The language and methods used to
31
implement need to be simplified and consistently deployed. Success in implementation is critical
to validating the investment in strategy in the first place. (Allio, 2005)
2.10.1 Management involvement in strategy implementation
(Heracleous, 2000) also finds that if middle management does not think the strategy is the right
one, or do not feel that they have the requisite skills to implement it, then they are likely to sabotage
its implementation. He refers to groups within the organization who will inevitably disagree with
the strategy. These groups may sabotage strategy implementation by deliberate actions or inactions
if implementing the strategy may reduce their power and influence. Thus, Herbaceous also sees
the perceived ability and perceived consistency between personal goals and the strategic change
goals as the decisive soft factor. (Waldersee and Sheather, 1996) believe that the approach of
matching strategy and manager’s style ignores the causal role of the organizational context or the
interaction of personality and context on implementation actions. It is widely accepted that
different strategies need to be implemented in different ways. Their study demonstrates, at least in
a laboratory setting, that strategy plays a significant role in shaping manager’s intentions.
Managers can alter their behaviors to suit different strategy situation. (Kim and Mauborgne, 1991)
point out that subsidiary top managers want an open process, that is consistent and fair, and that
allows for their input to be heard. In the presence of a so-called due (or open) process, subsidiary
managers are motivated to implement global strategies. They feel a strong sense of organizational
commitment, trust in head office management, and social harmony with their head office
counterparts. In the absence of such a due and fair process, the effect may be the opposite from the
intended one. (Chimhanzi, 2005) suggests that cross unit working relationships have a key role to
play in the successful implementation of marketing decisions. Implementation effectiveness is
affected negatively by conflict and positively by communication and specifically, interpersonal,
not written. In turn, these interdepartmental dynamics are affected by senior management support,
joint reward systems, and informal integration. Firms devoting attention to the alignment of
marketing and human resources are able to realize significantly greater successes in their strategy
implementation. Specifically, these findings imply that marketing managers should seek to
improve the relationship with their HR colleagues by emphasizing two of the process based
dimensions: joint reward systems and written communication. (Chimhanzi, 2005)
32
2.10.2 8S framework of strategy implementation
(Higgins, 2005) sets up an 8s framework of strategy implementation, including strategy and

purposes structure, resources, shared values, style, staff, systems and processes, and strategic
performance. The 8s of strategy execution is an approach that enables senior management to enact,
monitor, and assess the cross-functional execution of strategies. The 8s of strategy execution are a
revision of the original McKinsey 7s model. Higgins has deleted skills from the McKinsey
framework and he has added resources in their place. He also added strategic performance in order
to help focus the strategy execution process. As always, if there isn’t a good match or alignment
among these factors, performance in strategy implementation will suffer. According to (Jain,
2009): System approach can be defined as, A set of objects together with the relationships among
them and their attributes. System approach emphasis on the interrelations and interconnections
among the components of a marketing system in which product, services, money, equipment,
information etc, low from marketers to the customer. These flows largely determine the survival
and growth of a firm. Therefore, the focus of system approach is on the analysis of the marketing
flows and communication from markers to the customers.
2.11 Summary
From this chapter, we get a brief idea about all topics discussed in the same. Marketing is an
important wing of any company. Marketing mix helps to design an effective product. Market
33
segmentation helps to identify the target customers. Relationship marketing mainly focuses on
building a relationship between company and customers. For all entities mentioned here needs an
effective marketing strategy. Marketing strategy is a process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals of increasing sales and
achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-
term activities in the field of marketing that deal with the analysis of the strategic initial situation
of a company and the formulation, evaluation, and selection of market-oriented strategies and
therefore contributes to the goals of the company and its marketing objectives. A good marketing
strategy also defines the reason why it is unique or compelling to buyers. It should explain what is
the benefit the consumer gets by purchasing the company’s product. It should explain why the
customer would want to buy that particular product from the company and not go to some
competitor instead. Marketing strategy creates pathways to a desirable future. The output from
such marketing strategy analysis and choice (or strategic marketing decision) is a marketing
strategy statement. There are several elements of marketing strategy which is crucial for its
formulation, implementation, and evaluation. Even though there are different types of marketing
strategy, choosing the best one is vital for the company.
34
Chapter 3
Data Analysis and Interpretation
3.1.1 About the clarity in communication
Table 3.1: About the clarity in communication
Response No of respondents Percentage

Strongly agree 8 16
Agree 35 70
Neutral 6 12
Disagree 1 2
35
Strongly disagree 0 0
Total 50 100
Figure 3.1: About the clarity in communication
A BO UT T HE CLA RI T Y I N CO MMUNI CAT I O N
70
Percentage
16
12
0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE
Analysis
As from the Table 3.1, it can be seen that 16% of the respondents strongly agree that their brand
clearly communicates what they are about and conveys the highest value which they deliver. 70%
of them agree with the same. Here only 12% of the respondents became neutral. 2% of the
respondents disagree and 0% of the respondents strongly disagree with the same.
3.1.2 Usage of brand identity
Table 3.2: Usage of brand identity

Strongly agree 8 16
Agree 30 60
Neutral 11 22
Disagree 1 2
36
Total 50 100
Figure 3.2: Usage of brand identity
USAG E O F BRA N D I D E N T I T Y
Percentage
60
22
16
0
AGREE DISAGREE
Analysis
As from the Table 3.2, it can be seen that 16% of the respondents strongly agree that their brand
identity is being used in all media. 60% of the respondents agree with it. Here only 22% of the
respondents became neutral. 2% of the respondents disagree and 0% of the respondents strongly
disagree that their brand identity is not being used in all media.
3.1.3 Awareness about profitable customers
Table 3.3: Awareness about profitable customers

Yes 46 92
No 4 8
37
Total 50 100
Figure 3.3: Awareness about profitable customers
AWA RE NESS A BO UT PRO FI TA BLE

CUSTO ME RS
Yes No
92
8
PERCENTAGE
Analysis
From the Table 3.3, it is seen that 92% of respondents respond that they are aware of profitable
customers and the remaining 8% respond that they are not aware.
3.1.4 Awareness about environmental changes
Table 3.4: Awareness about environmental changes

Strongly agree 4 8
Agree 26 52
38
Neutral 15 30
Disagree 5 10
Total 50 100
Figure 3.4: Awareness about environmental changes
AWA RE NESS A BO UT E NVI RO NME NTA L

CHA NG ES
Percentage
52
30
10
8
0
AGREE DISAGREE
Analysis
52% agreed with the statement that they are aware of environmental changes. 8% strongly agrees
to it, 10% disagrees with the statement and another 30% of the respondents became neutral, and
0% of respondents strongly disagrees with it.
3.1.5 Opinion on actively selling
Table 3.5: Opinion on active selling

Yes 46 92
No 4 8
Total 50 100
39
Figure 3.5: Opinion on active selling
O PI NI O N O N ACT I VE LY SE LLI NG
Yes No
92
8
PERCENTAGE
Analysis
From the Table 3.5, it is seen that 92% of the staffs agreed to the statement that there opinion about
actively selling services to their current customers and only 8% of the respondents disagrees to it.
3.1.6 Key marketing messages that are consistently delivered in media
Table 3.6: Key marketing messages that are consistently delivered in media

Strongly agree 6 12
Agree 29 58
Neutral 9 18
40
Disagree 6 12
Total 50 100
Figure 3.6: Key marketing messages
K E Y MA RK E T I N G MESSAG ES
Percentage
58
18
12
12
0
AGREE DISAGREE
Analysis
From the Table 3.6, it is seen that 58% of staffs agreed to the statement that they have key
marketing messages that they are consistently delivering in all media. 12% strongly agrees to the
statement and an equal number disagrees with it. 0% of respondents strongly disagrees with the
statement. 18% remained neutral to the statement.
3.1.7 Experience customers have while interacting with employees
Table 3.7: Experience customers have while interacting with employees

Yes 45 90
No 5 10
Total 50 100
41
Figure 3.7: Experience customers have while interacting with employees
E XPE RI E NCE CUSTO ME RS HAVE W HI LE

I NT E RACT I NG W I T H E MPLOYE ES
90
Yes No
10
PERCENTAGE
Analysis
Table 3.7 shows that 90% of the employees strongly approached to the statement that the messages
delivered in all media match the experience customers have when they interact with KTDCs staff.
Only 10% of the respondents have a difference in the statement.
3.1.8 Targeting of messages to specific market segments
Table 3.8: Targeting of messages to specific market segments

Always 6 12
Periodically 37 74
42
When they have 7 14
opportunity
Total 50 100
Figure 3.8: Targeting of messages to specific market segments
TA RG E T I NG O F MESSAG ES TO SPECI FI C
MA RK E T SEG ME NT S
Percentage
74
14
12
ALWAYS PERIODICALLY WHEN THEY HAVE

OPPORTUNITY
Analysis
From the Table 3.8, it is seen that 74% of the employees agreed to the statement that they are
periodically targeting messages to specific market segments when they have an opportunity to do
so. 12% of respondents says they always target messages to specific market segments, while 14%
of respondents say that they will target only when they have the opportunity.
3.1.9 Opinion on shifting marketing to new channels
Table 3.9: Opinion on shifting marketing to new channels

Yes 43 86
No 7 14
Total 50 100
43
Figure 3.9: Opinion on shifting marketing to new channels
O PI NI O N O N SHI FT I NG MA RK E T I NG TO
NE W CHA NNE LS
Yes No
86
14
PERCENTAGE
Analysis
As from the Table 3.9, it can be seen that 86% of the respondents agree that it is time to shift some
or more of their marketing to new channels such as social media and mobile marketing. While
only16% of the respondents disagree with this opinion.
3.1.10 Opinion on maximizing the value
Table 3.10: Opinion on maximizing the value

Strongly agree 2 4
Agree 30 60
Neutral 14 28
Disagree 4 8
44
Total 50 100
Figure 3.10: Opinion on maximizing the value
O PI NI O N O N MA XI MI Z I NG T HE VA LUE
60
Percentage
28
8
4
0
AGREE DISAGREE
Analysis
As from the Table 3.10, it can be seen that 4% of the respondents strongly agree that they are
maximizing the value of the proprietary channels they control, such as newsletters, invoices,
product packaging and inserts, vehicles, and buildings. 60% of them agree with the same. Here
only 28% of the respondents became neutral. 8% of the respondents disagree and 0% of the
respondents strongly disagree with this.
3.1.11 Opinion on marketing tactics
Table 3.11: Opinion on marketing tactics

Yes 38 76
No 12 24
45
Total 50 100
Figure 3.11: Opinion on marketing tactics
Opinion on marketing tactics

76
80
60
40
24
20
0
Percentage
Yes No
Analysis
It can be seen from the Table 3.11, that 76% of the respondents strongly agree that the
marketing tactics are generating the best results- leads, conversions or sales at the lowest cost. Here
only 24% of the respondents disagree with this.
3.1.12 Impact of marketing style in customers
Table 3.12: Impact of marketing style in customers

Traditional 21 42
Marketing
46
Social Media 26 52
Marketing
Integrated Form 3 6
Total 50 100
Figure 3.12: Impact of marketing style in customers
I MPACT O F MA RK E T I NG ST YLE I N
CUSTO ME RS
Percentage
52
42
6
TRADITIONAL SOCIAL MEDIA INTEGRATED FORM
MARKETING MARKETING
Analysis
From the Table 3.17, it can be seen that 42% of the respondents believe that traditional
marketing has the edge. 52% of them believe that social media marketing has more impact on
customers. Here only 6% of the respondents believe that an integrated form will be best suitable.
3.1.13 Opinion on creativity used
Table 3.13: Opinion on creativity used

Yes 37 74
No 13 26
47
Total 50 100
Figure 3.13: Opinion on creativity used
O PI NI O N O N CREAT I VI T Y USE D
Yes No
74
26
PERCENTAGE
Analysis
From the above, it can be seen that 74% of the respondents agree that their creative efforts are
getting attention and it stands out in a crowded marketplace. But only 26% of the respondents has
a difference in opinion.
3.1.14 Clarity of marketing materials used
Table 3.14: Clarity of marketing materials used

48
Strongly agree 7 14
Agree 28 56
Neutral 12 24
Disagree 3 6
Total 50 100
Figure 3.14: Clarity of marketing materials used
CLA RI T Y O F MA RK E T I NG MAT E RI A LS USE D

Percentage
56
24
14
0
AGREE DISAGREE
Analysis
As from the above, it can be seen that 14% of the respondents strongly agree that their call to action
is loud and clear and their prospects know exactly what to do next after reviewing their marketing
materials. 56% of them agree with the same. Here 24% of the respondents became neutral. 6% of
the respondents disagree and 0% of the respondents strongly disagree with this.
3.1.15 Resonance of offers
Table 3.15: Resonance of offers

Yes 38 76
49
No 12 24
Total 50 100
Figure 3.15: Resonance of offers
RESO N A N CE O F O FFE RS
Yes No
76
24
PERCENTAGE
Analysis
As from the above, it can be seen that 76% of the respondents agree that their offer is resonating
with prospects and more and more people saying yes. While only 8% of the respondents disagree
with this.
3.1.16 Effective showcasing of products
Table 3.16: Effective showcasing of products

Always 26 52
50
Periodically 18 36
Seasonally 6 12
Total 50 100
Figure 3.16: Effective showcasing of products
EFFECTIVE SHOWCASING OF
52
PRODUCTS
Percentage
36
12
ALWAYS PERIODICALLY SEASONALLY
Analysis
As from the above, it can be seen that 52% of the respondents agree that their offers showcase their
products always, while 64% of them says its only periodically. Here only 12% of the respondents
say that only seasonally their offers showcase their products.
3.1.17 Role of offers in the product value
Table 3.17: Role of offers in the product value

Strongly agree 6 12
Agree 34 68
51
Neutral 8 16
Disagree 2 4
Total 50 100
Figure 3.17: Role of offers in the product value
Role of offers in the product value

80
60
68
40
20 12 16 4 0
0
Strongly agree Agree Neutral Disagree Strongly
disagree
Percentage
Analysis
As from the above, it can be seen that 12% of the respondents strongly agree that their offer delivers
real value to the prospect. 68% of them agree with this. Here only 16% of the respondents became
neutral. 4% of the respondents disagree and 0% of the respondents strongly disagree that their offer
delivers real value to the prospect.
3.1.18 Sales brochure attributes
Table 3.18: Sales brochure attributes

Yes 42 84
No 8 16
Total 50 100
52
Figure 3.18: Sales brochure attributes
SALES BROCHURE ATTRIBUTES

Yes No
84
16
PERCENTAGE
Analysis
It can be seen from the above that 84% of the respondents agree that their sales brochures displays
and sales demonstration tools are accurate, complete and up to date. Only 6% of the respondents
disagrees to the statement.
3.1.19 Integration of sales tools
Table 3.19: Integration of sales tools

Yes 43 86
No 7 14
53
Total 50 100
Figure 3.19: Integration of sales tools
INTEGRATION OF SALES TOOLS

Yes No
86
14
PERCENTAGE
Analysis
As from the above, it can be seen that 86% of the respondents agree that their sales tools are
integrated with their brand and marketing campaigns. 14 % of the respondents disagree with the
statement.
3.1.20 About the need of new tools
Table 3.20: About the need of new tools

Yes 45 90
No 5 10
54
Total 50 100
Figure 3.20: About the need of new tools
About the need of new tools

100
80 90
60
40
20
10
0
Percentage
Yes No
Analysis
As from the above, it can be seen that 90% of the respondents agree that they need new tools to
educate prospects about their industry or products. 20% of the respondents disagree with this.
55
Chapter 4
FINDINGS AND
SUGGESTIONS
Findings and Suggestions
This chapter presents the findings and suggestions. The major findings derived from data
analysis and interpretation are presented here. The suggestions discussed here will provide a
framework for KTDC to develop a new marketing plan.
56
4.1 Findings
On analysis, the following trends and profiles were noted.
4.1.1 Demographic profile
• 72% of the respondents are males.
• 60% of the respondents are graduates.
• 56% of the respondents are aged between 31 and 40.
• 44% of the respondents have more than 10 years of experience.
• 36% of the respondents earn between 10001 and 20000.
4.1.2 Findings related to marketing strategies
• 70% of the respondents agree that their brand clearly communicates what they are and
conveys the highest value they deliver. This indicates that the brand used by KTDC conveys
the intended message.
• 60% of the respondents agree that KTDCs brand identity is being popularly used in all media.
The major medias used by KTDC are Travel magazines, brochures, television commercials,
the internet (social media, websites, other travel forums) etc.
• KTDC is fully aware of its most profitable customers and they are targeting such customers
and prospects. This shows that KTDC is aware of its profitable customers and by targeting
such customers, KTDC is increasing its profit.
• 52% of the respondents agree that the customers changed the way find, buy, or use KTDCs
product or service and they have adjusted their marketing plan accordingly. The Internet has
57
changed everything. Population with Internet access use it to decide where to travel, where
to live, where to work or where to establish a business. Hence KTDC considers the internet
as their major marketing priority.
• 92% of the respondents agree that they are actively up-selling and cross-selling products and
services to their current customers. e.g.: - The tourists visiting Kovalam gets a brochure
about Thenmala Eco Tourism, Bolgatti Palace and other tourists attraction in Kerala. Here
there is active cross-selling of products.
• 42% of the respondents agree that they have three to five key marketing messages that they
are consistently delivered in all media. KTDC mainly showcases the location, facilities
provided and other related items. These are consistently delivered in all media.
• 58% of the respondents strongly agree that their marketing messages match the experience
customers have when they interact with their staff. The training given to the employees
ensures that they deliver a standardized service to all customers.
• 74% of the respondents agree that they are tailoring messages to specific segments when
they have the opportunity to do so. This means marketing tactics used are flexible. KTDC
has got different products and each cater to a specific market segment. e.g.: Premium Hotels
for upper-class customers, Tamarind Easy Hotels for middle-class customers etc.
• 86% of the respondents agree that it is time to shift some or more of their marketing to new
channels such as social media and mobile marketing. The population which has access to the
internet use the same for almost all activities. Whether it be a job, a place to travel or
anything, they rely on the internet. Social media has now become a platform for discussing
and sharing the travel experience. So it became necessary to shift some of the marketing to
new channels such as social media and mobile marketing.
58
• 60% of the respondents agree that they are maximizing the value of the proprietary channels
they control, such as newsletters, invoices, product packaging and inserts, vehicles, and
buildings. KTDC has got several marketing tools and they are utilizing it effectively.
• 76% of the respondents agree that the marketing tactics are generating the best results- leads,
conversions or sales at the lowest cost. This indicates that the marketing tactics used are very
effective.
• 52% of the respondents agree that they are integrating social media into traditional marketing
tactics like direct mail and advertising. This shows that KTDC understands the importance
of social media in marketing its products and they are integrating the same into traditional
marketing tactics like direct mail and advertising.
• 74% of the respondents agree that their creative is attention getting and it stands out in a
crowded marketplace. The creative designs or features used in ads, brochure etc. are attention
getting and it is unique which makes it differentiate from its competitors. Products are also
designed in such a way that it is attention getting. e.g.: Rain tourism ads, Eco Tourism ads
etc.
• 56% of the respondents agree that their call to action is loud and clear. Their prospects know
exactly what to do next after reviewing their marketing materials. This indicates that
messages conveyed in marketing material are appropriate and very clear. e.g.: KTDC Hotel
Tariff brochure contains major tourist sites in Kerala, KTDC hotels near to the same, tariff,
facilities provided in hotels, contact numbers, addresses, road map etc... The marketing
materials contain all necessary information at a glance.
59
• 76% of the respondents strongly agree that KTDCs offer is resonating with prospects and
more and more people saying yes. KTDCs offers are tailored and according to the market
segment. The offers are made based on the customer buying behaviour and they are effective.
• 52% of the respondents agree that their offers showcase their products. The brochures, ads
and other marketing materials used showcases different products of KTDC. These are
consistently delivered in all media which ensures that marketing messages delivered are
same.
• 68% of the respondents agree that their offer delivers real value to the product. KTDC
hotels give more value to the customers. The amenities, facilities etc. provided are worth the
money spent by each customer. In order to cater to all market segments, KTDC hotels are
designed accordingly. E.g.: Premium Hotels, Tamarind Easy Hotels, Budget Hotels etc.
• 84% of the respondents agree that their sales brochures displays and sales demonstration
tools are accurate, complete and up to date. This shows that KTDC updates its sales displays
and sales demonstration tools frequently, thereby making them matching with the market
needs.
• The majority of the respondents strongly agree that their sales tools are integrated with their
brand and their marketing campaigns. This indicates that marketing strategy is made by
interconnecting marketing elements.
60
• 90% of the respondents agree that they need new tools to educate prospects about their
industry or products. New tools can be used to increase brand visibility and also to increase
awareness about the products among customers.
4.2 Suggestions
From the above findings following suggestions are put forward.
To improve the internal marketing
• The company should have staff meetings to keep the employees updated on the hotel's
marketing objectives and upcoming marketing actions. Give clear instructions and
61
authorization so that the employees are aware of their duties and what they are allowed to
do in different customer related situations.
Lower to middle-level front-line officials of Central and States Tourism Departments

including those posted in tourist offices are usually in regular contact with the tourists may
be given accessibility-specific training.
To improve the customer retention practices
• In order to take into account the seasonality in customer flows, market segmentation should
be done more effectively. More effort should be put into taking care of the regular customers.
Partner with the expert players in the tourism industry as a whole to gain from their
experience.
• Develop a loyal customer program: Gather and maintain a list of items or other bonuses that
the loyal customer can receive; discount on the room rate, better room type, chocolates/ other
items delivered to the room before arrival.
• By contacting the customer for example by email and thanking for the feedback and
promising to take it into account of their feedback makes the customer feel more in contact
with the hotel. Responding to the feedback also gives an image of the hotel that it wants to
be involved.
To improve the effective utilization of marketing channels
• Plan and develop different kinds of marketing campaigns and offers. Create and develop
new campaigns on monthly basis. They can be derived for example from the different
seasons or holidays. They can be directed to a specific customer group. Market these
62
campaigns on the company’s web pages. Create and develop new campaigns on monthly
basis.
• Descriptive brochures and images about tourism activities, which relate to its special
qualities and is tailored to target markets, should be prepared for use in destination marketing
vehicles.
• Optimize the marketing materials for mobile as 20% of all web traffic comes from mobile.
• Visitor information kiosks can offer the information visitors need 24 hours a day/7 days a
week. Besides having kiosks at the rest areas, they should be placed strategically throughout
the county so that they can cross-promote activities, events, attractions, and amenities. The
more visitors see there is to do in the county, the longer they will stay and the more money
they will spend. Every site should cross-sell to other sites, attractions and amenities. Kiosks
come in all shapes and sizes - they should be designed to fit the character of the town or
location. Maintain and stock them regularly. Keep the information up-to-date.
• Promote activities, not just scenic vistas, and ambiance. When people see others doing fun
activities in a great setting, it is easy for them to imagine themselves there too. Promote
people over places.
Promote experiences over locations. The location is always second to the activity, people are
looking for things to do first, and then they will consider the general.
63
By contacting the customer for example by email and thanking for the feedback and promising
to take it into account of their feedback makes the customer feel more in contact with the hotel.
Responding to the feedback also gives an image of the hotel that it wants to be involved.
• Promote the EXPERIENCE. Brands are perceptions, and the perception is based on what
people expect to experience. Base the brand on activities that is what people are looking for.
Great photography that shows people having a great time helps your potential visitors
imagine themselves doing the same thing.
To improve the Internet marketing
• The Internet has a pivotal role in getting more customers; hence the full potential of Internet
should be used. The following suggestions will help for the same.
a) Customers have a mindset to book or check in hotels that first come in the Google search
and map results. Hence dominate Google local search and map results.
b) Social media should be used to give relevant updates. Communicate with social media
audience via relevant and engaging content.
64
c) Email marketing continues to be an effective tool for staying top of mind with customers
which lead to better retention. Email campaigns are also helpful. Also, include a link to
company website in the email signatures.
d) Be active in relevant travel & hotel communities.
e) Create videos and distribute online, also add the same to own website.
f) Conduct online contests, give discounts and exclusive packages to winners.
65
Conclusions
In this project, the effectiveness of marketing elements such as brand, marketing

messages, marketing channels, marketing tactics, creative approaches, offers, sales tools, data,
and website had been studied from the viewpoint of employees. From the study, it is understood
that the organization needs to improve its marketing channels and marketing tactics. This project
strongly recommends that the organization should improve its internal marketing, innovative
customer retention practices, Internet marketing and use of marketing channels. Results of
analyses in this project report show that any organization in travel and tourism industry should
update its facilities. It should take steps forward to gain new customer groups. It should also
adopt a new approach to keeping the customers satisfied and to retain them.
66
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68
Appendix
Questionnaire
Title: A study on internal perspective of marketing strategies implemented by

KTDC
Personal details
Name:
Gender: Male Female
Age: 20-30 31-40 41 and above
Qualification: Plus Two Degree Technical PG
Experience: Less than 1 year 1-5 years. 6-10 years Above 10 years
Income: 5000-10000 10001-20000 20001-30000 Above 30000
1. The brands used by KTDC clearly communicates what they are about and convey the highest
value they deliver?
Strongly agree Agree Neutral Disagree Strongly disagree
69
2. The brand identity is being popularly used in all media?
3. Do you agree to the point that KTDC knows their most profitable consumers and targets
accordingly?
Yes No
4. How far do you agree to the fact that KTDCs updated themselves to the environmental
changes?
5. Do you find KTDCs actively selling their product to their customers?
Yes No
6. KTDC have three to five key marketing messages that they are consistently delivering in all
media?
70
7. Do you think these messages synchronize with the experience that the customers would have
with KTDC?
Yes No
8. How often KTDC tailor messages to specific market segments?
Always Periodically when they have opportunity
9. Do you think it is high time to shift the KTDCs marketing style to social media and mobile
marketing?
Yes No
10. KTDC is maximizing the value of the proprietary channels they control, such as newsletters,
invoices, product packaging and inserts, vehicles, and buildings?
11. Do you think the low-cost marketing tactics are able to generate best result leads,
conversions, and sales?
Yes No
12. According to you, what kind of marketing style would have more impact on customers?
Traditional Marketing Social media marketing Integrated form
71
13. Do you think KTDC is able to stand out in a crowded marketplace with its creative efforts?
Yes No
14. How far do you agree to the fact that KTDCs call to action is loud and clear which is clearly
instructs their prospects what to do next after reviewing the marketing material?
15. Do you think that KTDCs offers are resonating with its potential customers?
Yes No
16. How often KTDC showcase their products?
Always Periodically Seasonally
17. How far do you agree that KTDC delivers real value to the prospect?
18. Do you think that KTDCs demonstration tools such as brochures, displays etc. are accurate,
complete and updated every now and then?
Yes No
19. Do you agree to the point that KTDCs sales tools are integrated with its brand and marketing
campaigns?
Yes No
72
20. Is there have a need for new tools to educate potential customers about the industry or
product?
Yes No
73

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Chapter 1

1.1 Background of the problem

1.2 Industry profile

Table 1.1: Industry profile

Output per annum Increased 7 % per annum

1.2.1 Tourism in India

Tourism products offered by India

Domestic media campaigns, international campaigns, national tourism awards, international

1. Indian Institute of Tourism and Travel Management (IITTM)

1.2.2 Tourism in Kerala

Kerala initiated tourism development programs by establishing an international beach resort at

Tourism development organizations

Role of KTDC in tourism development

1.3 Introduction to the company

1.3.3 Key objectives

1) To be a major player in the development of tourism infrastructure in the State.

Brands and products

1. Lake Palace, Thekkady.

1. Mascot Hotel, Thiruvananthapuram.

1. Hotel Chaithram, Thiruvananthapuram.

Tamarind Easy Hotels

1. Tamarind Easy Hotel, Neyyardam.

1. KTDC Restaurant, Veli, Thiruvananthapuram.

1. Central Reservation Centre, Thiruvananthapuram.

Restaurant & Beer Parlours

1.4 Research methodology

2) Quantitative research method.

Quantitative research method

Qualitative research method

1.4.1 Objectives of study

1. To evaluate the marketing strategy of KTDC

1.4.2 Research design

1.4.3 Sources of data

1.4.4 Statistical analysis tools used

1.4.5 Period of study

The study was conducted over a period of ten days from

1.4.7 Scope of study

1.4.8 Limitation of study

2.1 Marketing mix

2.2.1 Geographical segmentation

2.2.3 Psychographic segmentation

2.2.4 Behavioral segmentation

2.4 Introduction to marketing strategy

2.5.1 3 Cs of marketing strategy

A good marketing strategy should be characterized by

a) Clear market definition

Marketing strategy, in terms of these key constituents, must be defined as an endeavor by a

2.6 Strategic role of marketing

2.7 Elements of marketing strategy

2.8 Types of marketing strategy

2.8.1 Position defense

2.8.2 Mobile defense

2.8.3 Flank position

2.8.6 Contraction defense

2.9 Marketing strategy formulation

2.10 Marketing strategy implementation

2.10.1 Management involvement in strategy implementation

(Higgins, 2005) sets up an 8s framework of strategy implementation, including strategy and

Data Analysis and Interpretation

3.1.1 About the clarity in communication

Table 3.1: About the clarity in communication

Response No of respondents Percentage