MARKETING ASSIGNMENT

Marketing Assignment

Marketing Assignment

Introduction to Kerala

Kerala is one of states at the southern part of India between the Arabian Sea and Western Ghats. National Geographic Travel after 2 years of research has chosen Kerala, as one of the 50 must see destinations of a lifetime. Kerala has been stated as one of the 10 paradises of the world. Due to its geographical location it has a combination of beaches, hill stations and full of greenery. In Kerala, tourism has emerged as one of the few economic alternatives to develop the state economy. It has been recognised as an important sector for the development on account of its potential for generating income and employment.

The department of tourism functions under the Ministry of Tourism & Culture which is headed by Mr S. Jaipal Reddy .It is the nodal agency for the development and promotion of tourism. Kerala is headed by the tourism minister Mr K.C Venugopal.

This paper carries out a marketing streagy for the region of kerala as the international tourists rate is decreasing considerably in the region.

PEST Analysis

Political

The first element of a PEST analysis is a study of political factors. Political factors influence Kerala in many ways. Political factors can create advantages and opportunities for Kerala. Conversely they can place obligations and duties on Kerala. Political factors include the following types of instrument:

- Legislation such as the minimum wage or anti discrimination laws.- Voluntary codes and practices- Market regulations- Trade agreements, tariffs or restrictions- Tax levies and tax breaks- Type of government regime eg communist, democratic, dictatorship

Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.

Economical

The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society.

An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a “booming” or growing economy will have low unemployment, high spending power and high stakeholder confidence.

A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore Kerala will need to review the impact economic conditions are having on their competitors and respond accordingly.

In this global business world Kerala are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08.

Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English ...