By: Parth arora CASE ON TAJ HOTELS Taj hotel in Mumbai CONTENT • • • • • • • • • VIEW OF HOTEL INDUSTRY CHALLENGES FOR HOTEL INDUSTRY INTRODUCTION OF TAJ HOTELS. MARKETING MIX. STP ANALYSIS. COMPETITOR. MERSER & ACQUISITION. ETOP SAP ANALYSIS VIEW OF HOTEL INDUSTRY • What is Hotel Industry? “A Building Where Travelers Can Pay for Lodging and Meals and Other Services” Objectives of Hotel Industry Customer Satisfaction Health Safety Environment To Promote Tourism FORMS 30% OF INDUSTRY ITC, TAJ GROUP, OBEROI GROUP, ITDC Eg : BUILT OVER 18000 sq.m AREA STAR RATED HOTELS DELUXE & 5 : LUXURY AT HIGH PRICE , 27 % GOVT. APPROVED ROOMS 5 &1 : AROUND TOURIST SPOT, PREFERRED BY DOMESTIC TOURIST 2 & 3 : FOR MIDDLE LEVEL BUSINESS EXECUTIVES/LEISURE TRAVELLERS 4 HERITAGE HOTELS HERITAGE CLASSIC: HOTELS CONSTRUCTED BETWEEN 1920 - 1935 HERITAGE GRAND: HOTELS CONSTRUCTED PRIOR TO 1920 HERITAGE: HOTELS CONSTRUCTED AROUND 1935 – 1950 CHARACTERISED BY LESSER CAPITAL EXPENDITURE AND AFFORDABILITY . OPERATE FROM FORTS, PALACES, CASTLES, RIVER LODGES, HERITAGE BUILDINGS ETC. FACILITY HOTELS BUSINESS HOTELS • SPECIALLY EQUIPED WITH CONFERENCE ROOMS, SEMINAR HALLS, INTERNET FACILITIES ETC. TO SUIT THE CORPORATE GUESTS. • Eg: INTER-CONTINENTAL, CROWNE PLAZA • LOCATED NEAR AIRPORTS AND SUITABLE FOR SHORT STAY TRAVELLERS. • ARE FOUND NEAR ALL MAJOR CITY AIRPORTS. • HONEYMOON HOTELS MOSTLY LOCATED AT HILL STATIONS AND SPECIALLY FASCILITATED TO SUIT THE COMFORTS OF HONEYMOON COUPLES. • Eg. HOTEL WOODVILLE PALACE, CARLTON HOTEL, HOTEL HONEYMOON INN ETC. AIRPORT HOTELS Challengeg for Hotel Industry 1. Shortage of skilled employees 2. Retaining quality workforce 3. Shortage of rooms 4. Intense competition and image of India 5. Customer expectations 6. Manual back-end INTRODUCTION OF TAJ HOTEL • The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. • It was founded by Jamsetji N. Tata on December16, 1903. • Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India Cont………. • Additional 18 hotels are also being operated around the globe. • During fiscal year 2006, the total number of hotels owned or managed by the Company was 75. • The Taj hotels are categorized as luxury, leisure and business hotels. Cont………. The Taj Luxury Hotels offer a wide range of luxurious suites with modern fitness centers, rejuvenating spas, and well-equipped banquet and meeting facilities. The Taj Leisure Hotels offer a complete holiday package that can be enjoyed with the whole family. Cont……… It provides exciting activities ranging from sports, culture, environment, adventure, music, and entertainment. The Taj Business Hotels provide the finest standards of hospitality, which helps the business trips to be productive. They offer well-appointed rooms, telecommunication facilities, efficient service, specialty restaurants and lively bars, well-equipped business centres, and other conference facilities THE TAJ GROUP OF HOTELS SEGMENTATION TAJ LUXURY HOTELS – TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE TAJ BUSINESS HOTELS: TAJ PRESIDENT, TAJ RESIDENCY, TAJ CONNEMARA, TAJ BLUE DIAMOND OFFER MULTI – CUISINE RESTAURANTS & BEST BUSINESS FASCILITIES TAJ LEISURE HOTELS: TAJ BEACH RESORT, TAJ CULTURAL CENTRE, TAJ GARDEN RETREATS LOCATED AT BEACH RESORTS, PALACES, PILGRIM CENTRES ETC. Vision • The Taj Group of Hotels commits itself to the overall improvement of the ecological environment, which we are all a part of. • We recognize that we are not owners but caretakers of the Planet and owe it to our children and future generations of humankind. • It is our endeavor not only to conserve and protect but also to renew and regenerate the environment in which we live and operate Cont……… • Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities. • We will partner and engage with our environment through EARTH: Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a program, nor a process; it is a way of life Global award………. • Sep-2008 Taj Hotels Resorts and Palaces is proud to receive the 2008 GOLD Magellan Award for its Brand Campaign - 'No Room for the Ordinary' in the Advertising / Marketing Campaign Category and Print advertising Category. • Sep-2008 Taj Hotels Resorts and Palaces is proud to receive the award for ‘The Best Business Hotel Chain in India’ by the readers in UK at the 2008 Business Traveller Awards. • Sep-2008 Taj Hotels Resorts and Palaces tops the ranking in hotels segment in 'Asia Pacific's Top 1,0-00 Brands' survey for 2008. National award Apr-2009 • Jiva Spa is nominated for the award of ‘Best Spa Treatment – Ventoz’ Asia Spa India Awards held on 8th April 2009 held atDelhi Jan-2008 • Dun & Bradstreet - American Express Corporate Awards 2007 -India's Top 500 Companies 2007 - in the "Hotels" category TheIndian Hotels Company Ltd. Jan-2008 • Taj Hotels Resorts & Palaces - Avaya GlobalConnect CustomerResponsiveness Awards 2007- “ India’s Most CustomerResponsive Hotel “ – Category Hotels. Mile stone of Taj GROUP • 1903 The Company opens its first hotel, the "Taj Mahal Palace" in Mumbai, India. The Company opens its first five star deluxe beach resort, the "Fort Aguada Beach Resort" in Goa. • 1974 The Company begins business in metropolitan hotels by opening the five star deluxe hotel, the "Taj Coramandel" in Chennai • 1980 The Company opens its first hotel outside India, the "Taj Sheba Hotel" in Sana'a, Yemen. • 1984 The Company entered into a licence agreement to operate the "Taj West End" in Bangalore, "Taj Connamera" in Chennai and the "Savoy" in Ooty. • 1989 The Company opens a five star deluxe hotel in Calcutta, the "Taj Bengal • 1990 The Company establishes the Taj Kerala Hotels and Resorts Limited with the Kerala Tourism Development Corporation. • 1998 The Company opens the "Taj Exotica" in Bentota, Sri Lanka. • 2000 The Company establishes Taj GVK Hotels and Resorts Limited with the GVK group to operate three hotels in Hyderabad. • 2001 The Company is awarded the management contract for the "Taj Palace", Dubai. The Company launches the "Taj Exotica Spa and Resort" in Maldives. • 2002 The Company obtains licenses to manage and operate two leisure hotels: the "Rawal-Kot" in Jaisalmer and the "Usha Kiran Palace", Gwalior. • 2003 The Company relaunches its flag ship property as the "Taj Mahal Palace and Tower. • 2004 The Company launches its first luxury serviced apartments, "Wellington Mews" in Mumbai. The Company opens its first economy hotel under the brand "Ginger" in Bangalore. • 2005 The Company obtains a management contract to operate "The Pierre" in New York, USA. The Company entered into a management contract to operate the "Taj Exotica" in Palm Island, Jumeirah, Dubai. The Company obtained the operating agreement for the "Umaid Bhavan Palace" in Jodhpur. • 2006 The Company acquires the "W" hotel in Sydney, Australia which is later renamed as the "Blue Sydney". The Company commences operation of its first wildlife lodge at Mahua Kothi, Bandhavgarh. • 2007 The Company acquires the "Ritz-Carlton" in Boston, USA which is later renamed as the "Taj Boston." The Company commences operation of its second wildlife lodge at Baghvan, Pench. MARKETING MIX STRATEGY OF TAJ HOTELS Products Room Restaurant and Bar. Meeting room and Banquet facility Amenities Services Safe deposit box Special services • • • • • • • • courier Child care Laundry Pet Internet Travel desk Babysitting Wake-up call • • • • • • • • • Barber shop Boutiques Currency exchange In room telephone service Express check -in and out Florist Front desk 24 – hour Gift shop Maid service PRICE Taj hotel has set its price of the room on the basis of Business, Leisure and Luxury class. Rate The Taj Suite Executive Suite Standard sea view double Standard sea view single US$-175 US$ -125 US$-75 US$-75 The Taj Lady US$-90 PLACE Location of the hotel is the most important business decision for the hotel. Present in metro cities in India Global presence (Maldives,London,Dubai,Colombo) PROMOTION STRATEGY Promotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them are 1. The Taj Inner Circle. 2. The Taj Junior League. 3. The Taj Club. Taj also offer Taj surprises including weekend savers,value vouchers,book early get more, ADVERTISEMENT Business news paper(E.T, Financial Express, Bombay Times) T.V channels like STAR NEWS,CNN and CNBC. Magazines like THE OUT LOOK TRAVELAR,GO NOW and TRAVEL. Physical Evidence Lobby- It being the first & the last part of the hotel that the guestsees,thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should have made his stay hassle free Process 1. 2. 3. 4. 5. Major service encounter that extremely delighted or disappointed are: Check – in. Bell person carrying luggage to the room. Food. Wake up call Check out. People • • • • • Skilled person Professional person Personal Agents Technological person Travel agents COMPETITER The hotel has many competitors like 1. The Oberai towers 2. The Marine Plaza 3. The Orchid. 4. Le Meridian Acqusition-hotel blue diamond pune. STP analysis Segmentation • • • • Geographical segmentation Demographical segmentation Psychographic segmentation Behavioral segmentation THE TAJ GROUP OF HOTELS SEGMENTATION TAJ LUXURY HOTELS TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE TAJ LEISURE HOTELS TAJ BEACH RESORT, TAJ CULTURAL CENTRE, TAJ GARDEN RETREATS LOCATED AT BEACH RESORTS,PALACES, PILGRIM CENTRES ETC. Positioning • • • • Through print media Electronic media Magazines Online advertising Targeting • Targeting is a group of people who have common need, and behavior. • Business class • Upper class • Tourists Mergers and acquisitions Indian Hotels Starwood Group (W Hotel) Sydney Dec 2005 The Pierre US July 2005 Regent Hotel (renamed Taj Lands End) India September 2002 Factors Neutral Sub factor Law making, Tax policy, Price control, Internal Environment Employment law, Govt. policy Interest rate, Inflation, exchange rate opportunity ETOP threats Neutral legal economical Socio culture technological competitor SAP analysis factors Marketing mix strategy P1 strength weakness Neutral P2 P3 P4 HR Finance Production operation system