AN OVER VIEW..

Set up in 1971 to promote tourism. About rich attractions of Karnataka.

PROBLEMS: Exploit its potential to the fullest. Low awareness Lack of promotional strategies

Incurring financial losses. Image- Infrastructural facilities

KSTDC GROWTH 34 yrs completed. The company is growing since 1997

to 2002.

OBJECTIVE

To promote tourism in Karnataka by providing facilities.

Taking help from state government and state tourism.

ORGANISATION Two divisions: Hotels Transportation

TRANSPORTATION DIVISION

Has latest hi-tech coaches plus AC coaches.

33 coaches 2 volvo coaches.

HOTEL DIVISIONS Mayura grp of hotels Wide spectrum of customers.

Includes star hotels, motels & cottages.

Demand is seasonal Occupancy rate is 60% & 42% on

an average

SOCIAL OBLIGATION: Provides discount for promoting

tourism & serving social obligation. 10% concession for students.

THE JUNGLE LODGES AND RESORTS LTD.

Sister concerns. Bright spot. Objective-to promote

enviornment,adventure,wildlife tourism.

ADVERTISEMENT AND PROMOTION

Brochures.

FINANCIAL PERFORMANCE OF KSTDC

Incurring losses.

FUTURE PLANS Multi tourism promotion complex Hotel units. Acquire more coaches and expand

its base

Private travel agencies Increased facilities of local taxis Private hotels providing better

facilities & services to the customers.

Competitors

Of

The growth in the income from both hotels and transportation

Initially it started with 6 hotels and 8 buses. by 1997, KSTDC was operating 21 hotels, 4 restaurants, 1 kiosk and 31 buses

The transportation division has latest hi-tech coaches including air conditioned coaches

The hotel charges are lower compared to private hotels providing the same amenities.

Students are provided 10% concession KSTDC has a sister concern, the jungles

lodges and resorts ltd. This is only profit making unit of organization

The resorts are attracting increasing number of foreign tourists apart from domestic tourists

Strengths

The corporation is incurring losses. The accumulated losses up to 2004-2005 was Rs.206 lakhs

This is because of the high overhead costs The turnover is increasing every year; but

the operating costs increasing at a faster rate

The level of motivation of the employees is also low. this impedes the service delivery process.

Karnataka having a large number of places of tourist interest, but KSTDC has not been able to exploit this to the fullest extent.

There has been a lack of sustained promotion strategies to promote these tourist spots

Weakness

Karnataka having a large number of places of tourist interest, but KSTDC can exploit this to the fullest extent and attract more tourists

The corporation can come up with better-focused promotional strategies and provision of suitable infrastructure facilities.

Through aggressive advertisements they can create awareness in the tourists

The corporation has a prestigious plan of constructing a multi-tourism promotion complex . This complex will be a unique facility for all sorts of tourist and tourism related activities.

Tourist can access all information about karnataka in particular and all other places through the latest communication technologies

Opportunities

Weak infrastructure reduces the fuel efficiency of the vehicles, resulting in high operating costs.

The increasing overheads is also partly due to political intervention

KSTDC faces intense competition from private hotels and the local private travel agents.

The other reasons for the demand fluctuations might be during strikes,riots.

Threats

Karnataka having a large number of places of tourist interest, but KSTDC has not been able to exploit this to the fullest extent.

There has been a lack of sustained promotion strategies to promote these tourist spots may be because of KSTDC Is incurring losses

There has been low awareness of the various tourist spots not only to domestic tourist, but also the foreign tourist

The image of the tourists with respect to the state is not very high.

There is a need to promote tourism whether it is of historical, religious, cultural or of other interests.

Increasing overheads Weak infrastructure(roadways and

communication) is another concern The level of motivation of the employees is also

low. This impedes the service delivery process

Problems

Meeting infrastructural

deficiencies

Public private entity Separate lane for buses. Increase in facilities inside the

buses and more comfortable buses, seating etc.

This will lead to more people being attracted towards buses, hence reduction in traffic

Investment in roadways, railways.(better quality )

Once these are improved ,the infrastructure should be maintained well.

Reduction in no. of buses in a shorter distance, shift towards reducing unnecessary movement of buses.

Good quality buses, with good fuel efficiency,AC etc.

Results in having a control over the operating cost and improve the delivery process.

Get some private AC buses to operate

The strategies of KSRTC for internal marketing

Internal marketing is the way a company promotes its values and brand internally to employees that help generate its brand value. It is a management philosophy that believes employees are "internal customers" that require motivation on company policies.

According to Professor Philip Kotler, marketing activities within the company is equally important as marketing activities outside the company.

There are two perspectives to internal marketing.

One perspective is the coordination within the marketing department. The various marketing functions like sales , advertising, product development etc should act as a single unit focusing on delivering the best to the customer.

The second perspective is the interaction between the various functions like Production, Finance , HR etc.

Internal marketing strategies and tactics

for KSTDC

The KSRTC transport and its hotels must spend time and money on corporate brand builing activities that will help to attract & retain employees.

The internalizing of organizational culture among the employees.

Use intranet and other communication tools in the KSRTC’s hotels

Train the employees to be customer friendly.

Motivate the employees by way of

monetary rewards- bonus, salary hike, commission, medical re- embursement, etc

non monetary rewards like best performer of the month, free trip, etc.

Top management must take the responsible for internal marketing.

Internal and External Messages Must Be In-Sync

Sharawa Backwaters

Methods to make KSTDC a profit making organization?

Better fuel efficient vehicles. Cut down the overheads. Promote the wild life tourism more. Concentrate more on cultural festival like Dasara. Motivate its employees. Utilize the long coastal areas to attract tourists.Proper roads for the convenience of tourists.Gaining more hotels in and around Karnataka

Service mix

PHYSICAL EVIDENCE

Hotels,facilities in buses etc.

PROCESS

Good service,infrastructur

e,facilities in the hotels,buses etc.

PEOPLE

Motivated employees,well

trained,etc