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    Kuoni 1

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    aparnaskini
    Kuoni, a large European travel company, saw opportunities for entering the Indian market in 1991 as the economy opened up. It analyzed the travel environment, consumer preferences, competition and regulations. When Kuoni entered India in 1996, tourism infrastructure was poor, competitors were ahead, and travel was difficult. Competition was fragmented with many small players and a lack of professionalism. Kuoni acquired SOTC, India's largest outbound tour operator, and later increased its stake to gain a foothold. It diversified by acquiring SITA World Travel and Tour Club to become India's largest travel company.

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    Kuoni 1

    Uploaded by

    aparnaskini
    96 views2 pages
    Kuoni, a large European travel company, saw opportunities for entering the Indian market in 1991 as the economy opened up. It analyzed the travel environment, consumer preferences, competition and regulations. When Kuoni entered India in 1996, tourism infrastructure was poor, competitors were ahead, and travel was difficult. Competition was fragmented with many small players and a lack of professionalism. Kuoni acquired SOTC, India's largest outbound tour operator, and later increased its stake to gain a foothold. It diversified by acquiring SITA World Travel and Tour Club to become India's largest travel company.

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    Kuoni and Strategic Marketing Case Study

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    kuoni-1

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    Kuoni, a large European travel company, saw opportunities for entering the Indian market in 1991 as the economy opened up. It analyzed the travel environment, consumer preferences, competition and regulations. When Kuoni entered India in 1996, tourism infrastructure was poor, competitors were ahead, and travel was difficult. Competition was fragmented with many small players and a lack of professionalism. Kuoni acquired SOTC, India's largest outbound tour operator, and later increased its stake to gain a foothold. It diversified by acquiring SITA World Travel and Tour Club to become India's largest travel company.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    96 views2 pages

    Kuoni 1

    Uploaded by

    aparnaskini
    Kuoni, a large European travel company, saw opportunities for entering the Indian market in 1991 as the economy opened up. It analyzed the travel environment, consumer preferences, competition and regulations. When Kuoni entered India in 1996, tourism infrastructure was poor, competitors were ahead, and travel was difficult. Competition was fragmented with many small players and a lack of professionalism. Kuoni acquired SOTC, India's largest outbound tour operator, and later increased its stake to gain a foothold. It diversified by acquiring SITA World Travel and Tour Club to become India's largest travel company.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    KUONI

    MARKETENTRYSTRATEGIESININDIA
    KuoniTravelHolding Ltd.,established in1906andheadquartered inZurich, Switzerland,isoneof
    Europe's largest travel companies. The Kuoni Group has subsidiaries and, joint ventures in 22
    countries,employs8300professionalsworldwideandhasaturnoverofCHF4.1billion.
    WiththeopeningupoftheIndianeconomyalittlemorein1991,Kuoniperceivedanopportunityfor
    marketentry.Itsoughttoanalyse.

    ThetravelbusinessenvironmentinIndia

    Thedegreeofcontrolandinfluenceofeachofthem.

    Thechangingconsumerpreferencesandleisureconsumption

    Thedifferenttypesofcompetition,andtherulesandregulationisIndiaofthetrade.
    Tourism in India : The tourism scene in India wasn't exactly an E1 dorado Kuoni discovered.
    Infrastructurewaspathetic andcreaking,neighboringASEANcountrieswerewayahead. Travel
    managementthroughtrain,roadandairwasanightmareespeciallyduringholidaysandvacations.
    Theforeigntouristtrafficin1995waslessthantwomillion(Singaporeaveraged6million)andstayed
    inIndiaforanaverage13days(itwas3daysinSingapore).Thedomestictrafficwasencouraging
    100million,butmostlyintheeconomysegment.Indiahasmystery,historyandculture,butalsohad
    theimageofbeinghot,dustyandunhygienic. TourismwasverylowinthetotempoleofIndia's
    planners,whoseemedtohavemissedallpossiblebuses.
    Competition: ThiswasonefactorthatworriedKuoniimmensely,butforthewrongreasons. The
    scenewassodifferentfromwhattheyknewinEurope.Itwasworriedabouttoomanymiddlemenin
    the service distribution chain : India was the only country which continued with the services of
    GeneralSalesAgentsinairlinemarketing,whiletheworldovertheyhadbeenfossilised.Inthemid
    nineties,therewasreluctanceintheadoptionoftechnologyinComputerisedReservationSystems
    (CRS)andtbebillingSettlementPlan(BSP).BSPwasdevisedfortheeaseofcollectionofpayments
    butthetravelagentswereupinarmsagainstthem,fearingagradualphaseoutoftheirservices.They
    wereborrifiedtofindrampantunethicalpracticesamongsttheintermediariesofpayingbacktravel
    agencycommissionstocustomerscorporateorindividual.Thisreducedtheprofitmarginsoftravel
    trade.Customerswerebecomingcynicalandtalkingonlyprice.Therewasalackofprofessionalism
    inthetradeandthemarketwasgreatlyfragmented,populatedwithtoomanysmallplayers.
    OutboundleaderwasSOTC;SITA,TravelCorporationofIndia(TCI)andThomasCookdominated
    inbound,businessandincentive.ThomasCookhasthebestnationalcoverage,withover55branches,
    internationalconnection,professionalmanagement,alistedcompanybutseemedtomakemostofits
    moneythroughforeigncurrencydealings.TherewereotherplayerslikeCoxandKings(anerstwjile
    subsidiaryofTajGroupofHotelsbutwhichitsCEOAjitKerkarsurreptitiouslytransferredtohisson
    PeterKerkarandpromptlylosthisjob)andRajTours.Thereweretoomanysmallplayers,having
    narrowvisionwithnoeconomicsofscale.
    Howdidoneentersuchamarket?Whatweretheopportunitiesandtherisks?HowshouldKuoni
    positionitselfinthemindsofanotoriouslycannymarketthatconstantlysoughtvalue(readdiscounts)
    ?Howshoulditensureprofitability;swiftandwidespreadmarketpenetration;maintainquality;bring
    inworldclasspracticesandprofessionalism,andyetavoidthetrapofmarketingmyopiathatmany
    MNCserviceprovidershadfalleninto?
    MarketEntry: EntryintotheIndianmarket,in1996,wasthroughtheacquisitionroute:Kuoni
    TravelHoldingacquireda51%stakeinSOTC.India'slargestoutboundtouroperator,headquartered

    inMumbai.OnMay22nd,thenextyear,Kuoniincreaseditsshareholdingto100%,convertingitinto
    afullyownedsubsidiarymakingitatrueMultinationalCompany(MNC),SOTCbecameavalue
    brand, andthedefactooutbounddivisionofKunoni. In2000,todiversifyitsbusiness,Kuoni
    acquiredSITAWorldTravel,leadersininbound,BusinessTravelandIncentiveTravel. Withthe
    latest merger, Kuoni India became India's largest travel company. It strengthened its leadership
    positionintheinboundmarketin2001,byacquiringTourClub,India'sleadingdestinationmanager
    intheMiddleEast.
    1)WhatservicestrategyshouldKuonifollowforconsolidationofitsmarketentry?
    2)Howisservicesdifferentfromproducts,especiallyinthetravel&leisureindustry?
    3)DefinethemomentoftruthforthecustomerintheservicesprovidedbyKuoni.
    4)Howwouldyougoaboutthebusinessofservicesincontextwiththeabovecase?

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