Final Report On Globalisation

Macro Indicators •

According to data compiled by Hong Kong-based research firm CLSA AsiaPacific Markets, India would account 3.8 million rich households in 2010

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The Household Income Survey by the National Council of Applied Economic Research says that by 2010, there will be 140,000 households with an annual income of more than Rs. 1 crore i.e. 10 million USD.

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A total Indian population of 221 million households in 2010 would constitute of 3.8 million rich, 6.1 millions strivers, 22 million seekers, 75 million aspirers and 114 million deprived households based on their income range, the study shows.

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India is continuously getting urban, nuclear and rich

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The middle class (those with an annual household income of Rs 2-10 lakh at 2001-02 prices) has increased at a rate of 12.2% per year from 2001-02 to 2005-06 while for the next four years its annual growth rate is expected to be around 13.7%. Similarly, the size of the lowest income class would shrink steeply from 72% to 52% by end of the decade.

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Phenomenal increase in double-income families

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There has been a steady increase in urban disposable income and many middle-class households are moving up the income ladder

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There are over one million luxury customers in India and this figure is expected to triple by 2010.

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As per ET-AT Kearney’s Indian Luxury Review 2007, the $500-million domestic market for luxury products (apparel, jewelry, wines & spirits and accessories) may grow over 20% year-on-year for the next 7-8 years and more than quadruple to $2.6 billion by 2015. The $4.4-billion Indian market (minuscule in comparison to global standards) for luxury products, services (hotels, resorts, fine dining and spas) and assets (homes, cars, jets, yachts and art) too will become a $30-billion phenomenon by 2015.

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Though the demand for luxury brands in India is miniscule as against the global market projected at US$ 80 billion, experts say it is expected to grow by 25 per cent, thanks to the aspiring and travelling Indian consumer who can dole out dollars in rupees without batting an eyelid

Indian Traveler •

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Cruising in Alaska, trekking in New Zealand, shopping in Singapore and the gold souks of Dubai or simply lapping up the delights of Disneyland, the world has opened up for the middle class Indian who is holidaying like never before. Indians are moving out of home, hearth and country for newer pastures. Around seven million people travelled abroad in 2006-07. The outbound travel market has also grown at an average of 25 percent over the past three years The United Nations World Tourism Organization (UNWTO) has reported that the number of Indians travelling abroad will increase to a whopping 50 million by the year 2020. Indian travelers are now also spending more on out of India trips. According to reports, in 2006 Indian tourists in London spent more than the Japanese did -- London welcomed over 212,000 tourists from India who spent 139 million pounds, overtaking Japanese for the first time that spent 123 million pounds. And it is not just one trip abroad. Many families take two-three brief vacations a year thanks to a host of attractive packages offered by tour operators.

Reasons are cited for this increasing globetrotting trend: 1. 2. 3. 4. 5. 6. 7.

A higher disposable income Young population and shift to consumerism A new mindset of 'pampering yourself' Affordability quotient that is offered by numerous holiday packages Cheaper fares from various airlines are some of them. Easier bank loans for holidays More countries having visa relaxations for Indian families

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Apart from the metros, the trend of holidaying abroad is fast catching up in smaller cities and towns too Places like Nagpur, Visakhapatnam, Ahmedabad, Nasik, Jaipur, Amritsar and Ludhiana are among the other places showing a positive growth towards outbound tourism since mid 2006 The average amount spent daily per person is between $75 and $200, with hotel choices varying from three to five stars. An average Indian traveler spent $1,789 every time they went on a leisure trip.

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Southeast Asia is a hot favorite with leisurely holidays or even snatched weekends in Thailand, Singapore, Malaysia and Hong Kong fairly affordable. Asian countries are their most popular destinations for Indians. Other regions such as Europe attract a greater percentage (18 per cent) of Indian travelers for business rather than pleasure (14 per cent). As per industry estimates, by 2008 Indians would have spend more than US $4 billion on travel alone. Conventional channels remained popular when it came to holiday bookings. While 12 per cent of the travellers took to online travel agents, a majority of them still went to their regular travel agents or tour operators That Indians are one of the biggest spenders make them worth pursuing by various countries. Indians love to indulge in a variety of experiences ranging from nightlife, fine dining, soft adventures, sightseeing, shopping and family fun.

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Indians do not book months in advance and they prefer to finalize their travel plans maybe couple of days before the scheduled tour

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Foreign tourist offices, some of who have simplified visa procedures for Indian tourists, are increasingly recognizing the growing numbers. As travelers, Indians do not book months in advance and they prefer to finalize their travel plans maybe couple of days before the scheduled tour. In such circumstances the countries that provide visa-on-arrival or issue visas in a couple of days get preference; one of the main reasons why countries in the Far East remains popular Travelers usually visit the Far East, taking the Singapore-Bangkok-Malaysia sector the first time and US/Europe tours the second or third time.

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What do Indians look for in an off-shore holiday? • • • • • • • •

Exciting/Unique destinations Great Getaways Attractive/ discounted priced packages A hassle-free holiday Tour cost in Indian rupees Indian meals Exciting new activities the traveler can enjoy with the family or friends while on a holiday Traveler prefers destinations for which visas can be granted easily

Indian in Singapore •

Singapore continues to be the top most common travel destination for Indians

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About 24 per cent of the out-bound travelers in the next 12 months are likely to go to the island nation. This would be followed by Dubai, Australia, and Malaysia, with each of this contributing 17 percent. At present, India constitutes just over 7 per cent of its total tourists, which just crossed 10 million during 2007 India is the fourth largest inbound market for visitor arrivals to Singapore. From January-November 2007, a total of nearly 7 lakh Indians visited the country, which is a 13.7 per cent growth over the same period the previous year

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In 2006, Singapore achieved an all-time record high of S$ 12.4 billion tourism receipts, registering a 14% growth over 2005. The main component, total expenditure of visitors (TEV) which constituted 68% of total tourism receipts, posted a remarkable growth of 17% compared to 2005. The proportion of TEV on tourism receipts increased from 61% to 68% over the past 5 years. In 2006, the top five TEV generating markets were Indonesia, P R China, India, Australia and Japan. These five markets accounted for half of the TEV and registered a growth of 10% over last year. Top 10 TEV generating markets

Segmentati on

Indian Consumer Profile •

Availability of lifestyle spending options inducing higher spends on "status acquisition”.

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More visible consumption for products having bling value and consumers willingness to pay a premium for them Rise in indulgence with more desire for enjoyment and experience

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Culture of throughout-the-year consumption rather than festival- or occasionled spending

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Increasing fear of being ordinary. Consumers would want to be extraordinary though still within current social norm

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Money is the driving force

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Not scared to take risks

Behavioral and Lifestyle Characteristics of Consumer

Majority of the following statements would hold true in case of our target audience: •

Would aspire to take spouse and/or children for a vacation outside India

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Thinks that family deserves a vacation atleast once every year

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Believes in spending weekends not at home but go for Long drive/restaurant/movie with family and/or friends

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Would not mind sending children to schools where apart from education there would be extra curricular activities and sufficiently high fees will be charged

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Believes in giving autonomy to family members

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Believes that children should enjoy the comforts and luxuries in life and should not feel deprived

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Believes that consumer durables are somewhat of a necessity for the family

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Owns a high end cell phone: more than one cell phone: multiple cell phones in house

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Owns car(s) and perhaps chauffer driven

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Does not mind taking loans (credit) for asset creation

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Uses credit/debit card facilities

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Believes that financial security is required but at the same time believes that should not hold back and spends on entertainment and leisure

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Aspires to be a part of a group where it is possible to meet high profile people belonging to his/her domain of work

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Is member of a club

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Contributes to social and/or religious causes

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Would be medium to high brand conscious

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Is mindful of personal fitness and hygiene and would not mind spending for it

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Technology savvy (medium to high)

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Believes that societal norms should not necessarily be followed

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Believes that Western influence has done no harm and readily accepts it

Segmentation Variable

Occupation

Education Illiterate

Less than 4 yrs in school

Skilled

E2

E1

D

Unskilled

E2

E2

Shop owner

D

Petty trader

5-9 yrs School of certificate school

Some college

Graduate

Post-graduate

C

C

B2

B2

E1

D

D

D

D

D

C

B2

B2

A2

A2

E2

D

D

C

C

B2

B2

Above 10 persons

B1

B1

A2

A2

A1

A1

A1

Below 10 persons

C

B2

B2

B1

A2

A1

A1

None

D

C

B2

B1

A2

A1

A1

Clerk

D

D

D

C

B2

B1

B1

Supervisor

D

D

C

C

B2

B1

A2

Professional

D

D

D

B2

B1

A2

A1

Senior executive

B1

B1

B1

B1

A2

A1

A1

Junior executive

C

C

C

B2

B1

A2

A2

Employer of-

Average annual household disposable income

STP Segmentation- SEC A1 A2 and B1 (refer previous page) Middle Class and above (Seekers, Strivers & Global) Age 25-44 Adventurous People People who love to have New Experience Fathers who aspire to take spouse and/or children for a vacation outside India Also the above mentioned behavior and lifestyle characteristics would be applicable Targeting- Tier 1 & 2 (selected) cities with major emphasis on metropolitans and cities which have developed due to IT revolution e.g. Hyderabad, Bangalore, Pune, Noida, Gurgaon etc

Positioning- Resorts World major emphasis is on family entertainment. The various attractions have been designed in such a way that there is something for every member of the family. Various attractions are suited for the age group that is being targeted. Also it is an integrated resort (IR) and hence this feature should also be highlighted. Also IR is built with the casinos as the core attraction e.g. Venetian Macau, which cannot be positioned as family destinations. Resorts World is not built around the casino theme and as mentioned above it has attractions for the family hence in this regard it differentiates itself from other IRs. Hence positioning options could be the following: o

Asia’s First Integrated Family Entertainment Resort

o o

Your Search For Family Entertainment Destination Ends Here Experience Integrated Family Entertainment

Advertising Plan •

Objectives:

During the pre-launch stage the objective of communication will be to create awareness. During the launch stage the objective of communication would be to create unique identity and image for the brand. Post launch the objective of communication would be to take advantage of various brand associations created and leveraging the identity and positive image to create a personality for the brand.

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Message strategy:

Pre-Launch- The appeal should be rational. Informative communication would be the key. The aim is to generate word of mouth and build primary demand. A separate identity for Resorts World has to be created. Hence the focal point would be the brand name and the unique positioning. Various attractions at the resort should be highlighted. Associating the brand Universal Studio could be helpful at this stage to generate curiosity. Hence informative communication would be the key. The aim is to generate word of mouth and build primary demand. Launch Stage- The appeal should be emotional appeal. Persuasive communication would be the key. It is especially important as the brand when launched enters the competitive stage. Post- Launch- The advertising appeal should be emotional. As the corporate brand has been firmly established the various attractions could be the focus. Also reinforcement advertising should be used.

Brand Track

Print PR activities Press releases Television shows Events Digital Media Search Engine Marketing Key Word Search

Direct marketing Newspaper

Brochures

Magazines

Database marketing

Outdoor Media Banners OOH Point Of sale Personal Selling Corporate Tie ups Institutional buyers Dealers

mailers Personal selling HNI’s Celebrities Marketing Sales promotion Family packages Discounting

Media Plan Pre launch

Launch

Post launch

High

High

Medium

Low

Personal selling

Low

Medium

Direct marketing

Medium

Medium

Sales promotions

Low

High

Medium

Medium

advertisements PR

Internet Marketing

High

High

Print media Magazines News papers OOH Media

GQ, VOGUE, Femina, business outlook, outlook traveller, HT brunch Economic times, TOILifestyle Supplement.

LCD’s

Airports, Airplanes-Spice jet, Air India,5 star hotels

Hoardings

Prime Locations

Television Media Ads in Multiplex

PVR, Big Cinemas, Fame

Launch & Event Coverage on TV

Discovery, TravelnLiving, NDTV good times.

Digital Media Internet Marketing Web Development Affiliated Marketing

Events PR

Media Strategy

Search Engine Marketing, and Keyword Marketing, Ads on web User Friendly Website, Blogs. Tie-Ups with Different Dotcoms, Airlines Cos and Other Online Cross And Up selling Tie-Up’s. Corporate Events, Trade Shows, Interviews, Press Release, Press Conferences

Flighting Strategy