Presentation on Company Analysis – Club Mahindra Holidays

Contents Industry AnalysisRecent HappeningsMarketing CampaignsPEST AnalysisClub Mahindra HolidaysCompetitor AnalysisSWOT AnalysisCompany StrategiesMarketing CampaignsProducts and BrandsAwards and Recognition

Industry Analysis – Travel and Tourism Contributed around 6.2% of the total GDP of the country as on 2011-

12 Foreign Tourist Arrivals – 2011 - 6.29 million Foreign Exchange Earnings – 2011 - US$16564 million - growth of

16.7% International tourism flows are expected to reach 1.5 billion by 2020

and revenue estimated to cross $2000 billion In Asia, China has emerged as a leading tourist destination and is

predicted to be the world’s biggest tourist destination by 2020 followed by India

Recent Happenings• Falling of rupee - benefitted India foreign travellers found Indian hotels cheaper than before• India is in close talks with Mauritius in order to promote tourism • India allows 100% FDI in tourism•Subodh Kant Sahai, the tourism minister of India, announced that a tourism promotion forum will be set up at the Indian Embassy in Abu Dhabi to jointly promote tourism

Marketing Campaigns ‘Incredible India’, India’s international marketing campaign - started

in 2002 to promote tourism in India ‘Incredible India’ has attracted 4.32lakh foreigners in June this year Incredible India campaign on Facebook, Twitter and Youtube ‘Atithi Devo Bhava’ against harassment of tourists

PEST Analysis

Strong support by the Government of India to promote TourismLuxury Tax like VAT and food and beverage taxes in hotelsLull in the tourism of states like Gujarat after Godhra riotsPolitical scenario in states like J&K and other North Eastern statesPrivatization of airports in India

Growth in income levels in most developing nationsInternational tourists as well as domestic tourists have grown with timeRise in the number of people travelling by air in the last decadeWith the recent fall in rupee, India has witnessed 4.32lakh foreign tourists in the month of June

Increase visibility of travel companies on the webPromote a place, its features, maps, plan of travel, modes of travel etc. Tourists visiting the places need mobile network

Improved infrastructure attracts foreign tourists and helps preserve the customs and traditionsRaises global awareness of poverty or unemploymentIncreases crowding and congestion at a place leading to drugs and alcohol abuse and increased crime levelsCases of locals being driven away to make way for expansion of infrastructure to promote tourism

PEST (clockwise from top left)

SWOT Analysis

India's geographical location which is a blend of deserts, forests, mountains, and beachesDiversity of culture i.e. a blend of various civilizations and their traditionsA huge number of archaeological sites and historical monuments

Lack of adequate infrastructure e.g. the road conditionA xenophobic attitude among people in India No proper marketing of India's tourism abroadImage of India is one of poverty, superstition and diseasesIll treatment of foreigners by locals garnering criticism

Threat of terrorist attacks like the 26/11 Mumbai Attacks that killed many foreign touristsAggressive strategies adopted by other countries like Australia, Singapore etc. to promote their tourism

Improving infrastructure and basic amenities can attract more touristsPromoting domestic tourismAllowing more multinational companies to enter India which will give a global perspective to the country which in turn can promote tourismFraming of better policies by the Government of India

SWOT(clockwise from top left)

CLUB MAHINDRA HOLIDAYS Mahindra Holidays & Resorts India Ltd. (MHRIL) is a part of the USD

15.4 billion multinational Mahindra Group 'Club Mahindra Holidays’ provide holidays on a timeshare basis Incorporated on 20th September 1996 Started its operations with a single resort in Munnar in 1997 42 resorts in India and abroad Headquarters - Chennai 143000 thousand members and 42 resorts across hill stations,

beaches, backwaters, wildlife, forts and heritage, as well as international destinations

Listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) Mumbai

CLUB MAHINDRA HOLIDAYSAs on 31st March 2011 As on 31st March 2012

Net Sales Rs. 48712.53 lakhs Rs. 57382.98 lakhs Revenue Turnover Rs. 52245 lakhs Rs. 62,155.72 lakhsProfit After Tax Rs. 10276 lakhs Rs. 10464.05 lakhs

Earnings Per Share Rs. 12.30 Rs. 12.49

Paid Up Equity Share Capital

Rs. 8360.57 lakhs Rs. 8384.56 lakhs

Club Mahindra HolidaysSales

PromotersPublic

Promoters hold 82.69% of the paid up shares with the remaining 17.31% being contributed by the public

Competitor Analysis

Country Club India Ltd. is one of the biggest competitors of Club Mahindra

Country Club has an annual profit of 4,614lakhs while Club Mahindra boasts an annual profit of a whopping 10,276lakh as on 31st March, 2012

Both Club Mahindra and Country Club cater to the High Income group

Competitor Analysis Club Mahindra charges a one-time membership fee which is valid for

25 years and an annual subscription fees depending on the category chosen by the individual

Country Club has a similar structure with but less than 25 years -> offered plot of land at discounted prices to interested people in order to attract members

Country Club India has established 205 properties of which over 175 are franchised properties

Club Mahindra owned all the resorts initially but today it has 91 authorized franchisees and 42 locations across India

SWOT Analysis

Pioneer in Tourism and Leisure Industry and boasts of world class leisure and hospitalityWorld class facilities and amenitiesA huge customer base of 143,000 membersBeautiful resorts at 42 different places in India and abroadCategorization of accommodation on the basis of types of rooms and seasons to suit the needs and affordability of people

Total number of rooms for accommodation is too lessLifetime membership but has a validity of only 25 yearsCan’t be afforded by the middle class peopleIssue of non-inflationary annual ratesToo many complaintsGrievance redressal is also questioned

Increase in competitors like Country Club which offers membership for a lesser durationForeign holiday resort companies like Cox’s and King’s setting up base in India

Increasing and expanding the infrastructure to accommodate more touristsAllowing more tie ups with other companies which will give a better perspective to the company which in turn can promote tourismCatering to the middle income group which is in majority in India

SWOT(clockwise from top left)

Company Strategies Floating week or floating resort model Membership fees + annual subscription fee Member also pays for use of various facilities and services at the resort Access to its members to over 6,000 resorts across 90 countries by

paying a simple nominal exchange fee in Indian rupees Facilities, such as gyms, swimming pools, restaurants, ayurvedic spas,

kids clubs and a variety of holiday activities. The range of activities span adventure sports, water sports, camping, treks, indoor family games and hobby programs for children and adults

Marketing Campaigns Initially ‘fun family forever’ with the message on its website ‘The

happiest family holidays’ Re-position the brand - ‘Jiyo Life’ Need of Social Media Marketing

Marketing CampaignsSocial Media Marketing Facebook Twitter YouTube Separate profile of Club Mahindra and Jiyo Life community on

Facebook 460605 people as registered members of this community Different links on its community page like reviews, discussions, happy

family stories, live contests, top fans

Marketing Campaigns Started www.jiyolife.com Interesting menus like magazine, happiness recipe, my Jiyo Life meter

and downloads Customer Relationship Management System - tool to track important

member information and preferences Touch screen solution at all its resorts to record online feedback from

members/customers

Products And Brands Online banners Club Mahindra Zest Corporate Fundays - rewards and recognition solutions for corporate

memberships from companies to executives. Club Mahindra Travel - E-Commerce website Mahindra Homestays - experiences of authentic India for guests living

in carefully crafted Indian homes ranging from palaces and heritage properties

Terra - newly launched product which is targeted towards the urban family where the tented campsite designed especially for enjoying nature

Awards And RecognitionsFirst company in the world to receive COPC (Customer Operations

Performance Center) certificationThe Lakeview Munnar property of the company has won the ‘TEN YEAR

Award’ for consistent recognition as a RCI Gold Crown Resort from 2000 – 2009

‘Business Superbrand 2008 and 2009-10’ by Brand Council of IndiaClub Mahindra Snowpeaks - best socially responsible resort in Manali in

the year 2009Ranked at 150 in Business Today BT Top 500 in the year 2009. Food Hygiene Certification of International Standard from ‘Branch

Hygiene Code’ of NetherlandsISO: 9001 certification to the Member Relations Department of Club

Mahindra

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