Marketing Mix Of Goibibo and 7Ps (Updated 2024)

The Marketing mix of Goibibo analyses the 7Ps of Goibibo, which includes the Product, Price, Place, Promotion, people, physical evidence, and process of Goibibo. Goibibo is a subsidiary of its parent company, Ibibo Group. It is associated with the travel and tourism industry and deals in online bookings. It is of Indian origins and has Sanjay Bhasin and Vikalp Sahni as its CEO and CTO, respectively. Goibibo has been one of the fastest-growing companies in India as it exceeded its previous volume of hotel bookings by five times in 2015. The brand has targeted travelers and internet users as its potential customers. Some of its competitors in the market are as follows:

• Yatra.com
• Clearrip.com
• Makemytrip.com

About Goibibo

• Type: Online travel agency
• Industry: Travel and tourism
• Founded: 2009
• Founders: Ashish Kashyap, Sanjay Bhasin, and Vikalp Sahni
• Headquarters: Gurugram, Haryana, India
• Area served: India
• Current CEO: Kavi Paul
• Number of employees: 3,000+
• Major products: Flights, hotels, trains, buses, cabs, and holidays

Goibibo Product Strategy

Goibibo is a leading travel aggregator whose business transactions are performed online. It is a B2C or business-to-customer organization as it likes to deal directly with its customers by providing the best transportation and accommodation facilities.

It is the largest booking search engine and has been ranked first in the travel sector through mobile apps. Goibibo offers trusted and fastest experiences to its users by searching for the required product, making bookings, making payments, and options for cancellation, settlement, and refund.

The new Product Mix of Goibibo in 2024 is as follows (Source).

1. Flight Bookings: Goibibo offers domestic and international flight bookings, providing options across various airlines. Users can compare prices, flight timings, and other details to choose the best fit for their travel plans.
2. Hotel Bookings: The platform lists various hotels, resorts, and guest houses for accommodations in different locations. Users can filter their search based on price, location, amenities, and reviews to find the best stay.
3. Bus Bookings: Goibibo allows booking bus tickets across various routes in India. It includes many bus services, including government and private operators.
4. Train Bookings: Through a partnership with IRCTC, Goibibo enables users to book train tickets for different routes across India. This service allows users to check train availability, timings, and seat availability.
5. Cab Bookings: Goibibo offers car rental services for airport transfers, city tours, and outstation trips. Users can choose from various car options depending on their preference and group size.
6. Holiday Packages: Tailored packages are available for domestic and international destinations. These packages often include flights, accommodations, and sometimes additional services like sightseeing tours and meals.
7. Travel Insurance: Goibibo also offers travel insurance options to cover various aspects of your trip, including trip cancellations, medical emergencies, and luggage loss.
8. GoCash: This is Goibibo’s loyalty program, where users earn GoCash on every booking made through the platform. GoCash can be used for future bookings and provides discounts and offers.
9. Goibibo Pro: A subscription-based membership offering additional benefits and exclusive deals on bookings made through Goibibo. Benefits can include price lock, complimentary room upgrades, and early access to sales.

Goibibo Place Strategy

Goibibo has spread its presence to every part of India and is accessible through social media concepts, an online portal, and mobile apps. It became a part of its owner group in 2009 and had its headquarters in Gurgaon, India. Goibibo has several offices in places like Kolkata, Delhi, Mumbai, Bangalore, Delhi and Chennai. Its official website is Goibibo.com, and in 2015, it partnered with Google Flight Search, making it the first OTA of Indian origins.

Goibibo has used the latest technology for integration, travel, and selling platforms. At its onset, the company concentrated solely on flight tickets on the domestic front but, with time, also began to offer hotel and flight bookings in the international market. Goibibo has tie-ups with 400 airlines and has access to 52,000 routes. More than half of its bookings are via mobile apps and done through Mobile-Web, Windows Phones, Android, iOS, and the rest through the desktop.

The place strategy of Goibibo, focusing on how it distributes and makes its services accessible to customers and consumers, can be summarized in the following points.

1. Online Platform: Goibibo operates primarily through its website and mobile app, making it accessible to customers anywhere with internet access. This digital presence allows for immediate booking and confirmation.
2. Wide Geographic Reach: While Goibibo is based in India, its services cover domestic and international destinations. This broad reach enables users to plan and book travel globally through a single platform.
3. Integration with Other Services: Goibibo’s platform is integrated with various service providers, including airlines, hotels, and transportation services, allowing users to access a wide range of travel options seamlessly.
4. Customer Support Centers: Although Goibibo is an online service, it supports its users through customer service centers that provide assistance and resolve issues via phone, email, and chat, ensuring a smooth booking experience.
5. Strategic Partnerships: Goibibo has partnered with banks, financial institutions, and other online services to offer promotional deals and discounts, making it an attractive option for customers seeking value-added services.

Goibibo Pricing Strategy

Goibibo is an e-commerce company positioned as a trusted portal offering the best services and deals at the lowest possible rates. Its business model and pricing strategy are supported by its concept of low-charge user acquisition. The company has adopted an economical pricing policy and offers air bookings at the lowest rates in all e-commerce travel booking portals. It has a payment gateway, PayU, that helps secure its transactions. As Goibibo faces stiff competition from rival companies, it has adopted a competitive pricing policy to maintain its customer base and drive traffic. The type of user response it creates has helped generate significant revenue sources.

Goibibo employs a dynamic and competitive pricing strategy to maximize market penetration and customer loyalty while ensuring profitability. This strategy is underpinned by several fundamental principles and marketing strategies that cater to a wide range of customer segments.

1. Dynamic Pricing Model: Goibibo leverages advanced algorithms and real-time market data to adjust prices dynamically. This approach ensures pricing remains competitive across its services, including flights, hotels, and holiday packages. By analyzing demand, competition, and customer behavior, Goibibo can optimize pricing for various travel options, offering deals that are hard to match.
2. Promotional Discounts and Offers: Goibibo frequently rolls out promotional offers, discounts, and coupon codes to attract new customers and retain existing ones. These promotions are often tied to festivals, holidays, and off-peak travel periods, encouraging bookings when demand might be lower. This strategy boosts sales volume and enhances brand visibility and loyalty.
3. Loyalty Programs (GoCash): The Goibibo loyalty program, GoCash, rewards users for their bookings with points that can be redeemed for discounts on future transactions. This gamification of the booking process incentivizes repeat business, fostering a loyal customer base more likely to choose Goibibo over competitors for travel needs.
4. Value-Based Pricing: Understanding that customers seek value, not just low prices, Goibibo’s pricing strategy focuses on offering enhanced value through bundled services, such as flight packages, priced more attractively than individual bookings. This approach addresses various customer needs, from budget to luxury preferences, ensuring a broad market appeal.
5. Market Penetration Pricing: To capture market share in the highly competitive online travel industry, Goibibo initially adopted a market penetration pricing strategy for new services or markets. By offering lower prices than competitors, Goibibo aims to quickly attract customers, establishing a foothold that can be leveraged to build brand loyalty and subsequently adjust prices to more sustainable levels.

Goibibo Promotion Strategy

Goibibo’s solid promotional and marketing strategy has helped its company reach unimaginable heights in the tourism and travel industry. The company relies heavily on its campaigns aired on radio and several television channels through electronic media. It has also taken the help of print media, and its ads are displayed in hoardings, newspapers, and travel magazines. As it is related to the online industry, its usage of social media platforms is very high, and its Facebook page has 1.5 million users.

As part of its campaign and its marketing plan, it offers various deals and incentives to its customers like rupees 2000 cashback if booked via Goibibo coupons, a 60% discount on domestic air tickets with coupons, and a discount of Rupees 800 if the coupon code is used. Goibibo has been the recipient of several awards in recent times. It was awarded the Best Tech Travel Award by The Economic Times in 2015 and India’s Best Website in 2014.

Some Recent Video ads and Print ads for Goibibo are:

Goibibo People Strategy

The “People” element of the Service Marketing Mix is crucial, especially for service-based companies like Goibibo, where customer interaction and satisfaction play a significant role in the overall business success. Here’s an insight into the “People” aspect of Goibibo.

1. Customer-Centric Staff: Goibibo invests in training and development programs to ensure its staff, from customer service representatives to the technical team, are customer-centric. This focus ensures that every interaction with Goibibo is positive, informative, and helpful, enhancing customer satisfaction and loyalty.
2. Skilled Workforce: The company employs a skilled workforce adept in technology, travel management, and customer service. This expertise is crucial for operating in the dynamic online travel industry, where understanding customer needs and leveraging technology for better service delivery is critical.
3. Leadership and Vision: Goibibo’s leadership team comprises experienced professionals with a vision for innovation in the travel industry. Their strategic decisions drive the company’s growth, market positioning, and customer service excellence, ensuring that Goibibo remains competitive and responsive to market changes.
4. Culture of Innovation: The people at Goibibo are encouraged to foster a culture of innovation where new ideas for improving customer experience and operational efficiency are welcomed. This culture motivates employees and leads to the development of cutting-edge solutions that benefit customers.
5. Responsive Customer Service: Goibibo’s customer service team is trained to be highly responsive and empathetic, understanding that travel plans can often change unexpectedly. They are equipped to handle inquiries, complaints, and requests efficiently, ensuring customer concerns are resolved promptly and satisfactorily.

Goibibo Process Strategy

The “Process” element in the Service Marketing Mix of Goibibo involves the methodologies and procedures that the company employs to deliver its services efficiently to customers. This component is crucial as it directly impacts the customer experience, service delivery speed, and overall satisfaction. Here’s an overview of the process aspect of Goibibo’s digital marketing strategies.

1. User-Friendly Booking Platform: Goibibo has streamlined the booking process through its user-friendly website and mobile app. Customers can easily search for flights, hotels, buses, and trains, compare prices, and book their preferred option within a few clicks. The process is designed to be intuitive, minimizing the time and effort required from the user.
2. Automated Notifications and Updates: From the moment a booking is made, Goibibo ensures customers are informed through computerized notifications and updates regarding their booking status, changes, and essential travel advisories. This communication process enhances transparency and builds trust.
3. Seamless Payment and Checkout Process: Goibibo offers a secure and straightforward payment process, supporting multiple payment options like credit/debit cards, net banking, UPI, and wallets. The checkout process is optimized for speed and security, ensuring a hassle-free customer experience.
4. Efficient Customer Service and Support: Goibibo has established a structured customer service process that includes 24/7 support through various channels, including phone, email, and chat. The company uses customer service management tools to address queries promptly and effectively, reducing resolution time and improving customer satisfaction.
5. Feedback and Continuous Improvement: Goibibo has a robust process for collecting and analyzing customer feedback through surveys, reviews, and social media interactions. This feedback is crucial for identifying areas of improvement and innovating service delivery. The company actively uses customer insights to refine its processes and offerings, ensuring they meet or exceed customer expectations.
6. Dynamic Pricing and Offers: The pricing strategy at Goibibo is supported by a dynamic process that adjusts prices based on demand, competition, and other market factors. This process allows Goibibo to offer competitive rates and special promotions, enhancing customer value.

Goibibo Physical Evidence Strategy

The “Physical Evidence” element in the Service Marketing Mix refers to the tangible or virtual elements that customers interact with, which help to make the service more tangible and assure the quality of the service in the absence of physical products. For a digital-first company like Goibibo, physical evidence is crucial in building trust, credibility, and a sense of security among its users. Here’s how Goibibo leverages physical evidence in its digital marketing and service delivery.

1. Website and Mobile App Interface: Goibibo’s website and mobile app serve as the primary touchpoints for customers. Their design, ease of use, and functionality are vital forms of physical evidence. A user-friendly interface that is visually appealing and intuitive to navigate reassures customers of the company’s professionalism and commitment to quality.
2. Booking Confirmations and E-Tickets: After a booking is made, Goibibo provides instant confirmation via email and SMS, which include e-tickets, booking IDs, and detailed itineraries. These documents are tangible proof of the transaction and essential for customers’ peace of mind and use during travel.
3. Customer Reviews and Ratings: The availability of customer reviews and ratings for hotels, flights, and other services on Goibibo’s platform is evidence of the quality of services offered. These reviews help new customers make informed decisions based on the experiences of others.
4. Brand Imagery and Communication: The consistency in Goibibo’s brand imagery and communication across different channels (website, app, social media, advertisements) helps build a recognizable and trusted brand. This visual identity becomes a form of physical evidence that customers associate with reliability and quality service.
5. Customer Support and Interaction Centers: While primarily an online service, any physical interaction points, such as customer support centers or partnered travel agencies, also contribute to the physical evidence of Goibibo. The professionalism and efficiency of these interactions further reinforce the brand’s commitment to quality service.
6. Payment and Security Certifications: Displaying secure payment badges, SSL certificates, and other security certifications on the website and app reassure customers about the safety of their transactions. This form of physical evidence is crucial for building trust in an online platform.
7. Promotional Materials and Merchandise: Any promotional materials, merchandise, or advertising that Goibibo uses in physical or digital form also contribute to the physical evidence. These materials, whether online ads, billboards, or digital brochures, help create a solid image of the brand in the customer’s mind.

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