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7PS OF RESTAURANTS IN INDIA
SUMMER TRAINING REPORT ON PROJECT TITLE
“Submitted in the Partial Fulfillment for the Requirement of Bachelor‟s of Business Administration” (BBA)
Submitted to: Project Guide (Name)
Submitted by: Student Name: Roll No. Batch
Jagannath International Management School Kalkaji, New Delhi
I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom. Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to MR. ______________ for his helpful hand in the completion of my project.
The diverse culinary habits, wide range of cuisines and the diverse cooking techniques are some of the main factors behind the growth of restaurants in India. With the market liberalization policies undertaken by the government, India has also become a consumer market with a huge customer base. This has provided a fillip to the restaurant industry in the country. With the high standard of living and the change in the lifestyle of the people, more and more consumers are also flocking various restaurants. Recent surveys have shown that there has been a growing trend among the Indians to taste various types of gastronomical delights. This has also led to the growth of restaurants which serve regional and international delicacies. The growth of the tourism industry has also been a positive factor behind the
growth of restaurants in India. With more and more domestic and foreign tourists going to the popular tourist destination, it has been a boon for the restaurants. According to recent surveys, India has become one the top five destinations among the 167 popular tourist destinations. With more and more foreign tourists coming in, the restaurant industry is expected to grow at a rapid pace and more categories of eating outlets will come up.
TABLE OF CONTENTS
Description Acknowledgement (i) Contents List of tables List of figures List of symbols, Abbreviations or Nomenclature (optional) Executive Summary Certificate from Organization, faculty and declaration from student 1. Introduction to topic a) Origin & development of the industry. b) Growth, present & future of industry. c) Defining the concept. 1 d) objective of the project 2. Company Profile a) Origin b) Growth & present strategy c) Products & Services d) Market profile. 3. Research Methodology 4. Analysis & Interpretation 5. Findings & Inferences 6. Recommendations and Conclusion Appendices Bibliography Page No. (i)
CHAPTER I INTRODUCTION TO THE TOPIC .
the restaurant industry is expected to grow at a rapid pace and more categories of eating outlets will come up. wide range of cuisines and the diverse cooking techniques are some of the main factors behind the growth of restaurants in India. With more and more foreign tourists coming in. With the high standard of living and the change in the lifestyle of the people. However. This has also led to the growth of restaurants which serve regional and international delicacies. the Indian restaurant industry is mainly based in the urban areas the tourist destinations. Recent surveys have shown that there has been a growing trend among the Indians to taste various types of gastronomical delights. the rate of growth of the restaurant industry in India is expected to be around 4. more and more consumers are also flocking various restaurants. A significant number of the workforce in the country is also engaged in the restaurant industry. The growth of the tourism industry has also been a positive factor behind the growth of restaurants in India. Efforts need to be made to increase the market in the rural areas as well. India has also become a consumer market with a huge customer base. the main challenge is to enhance the market growth of the industry. With the market liberalization policies undertaken by the government. it has been a boon for the restaurants. the overall restaurant industry in the world will employ around 13. India has become one the top five destinations among the 167 popular tourist destinations. According to recent surveys. There are restaurants in the rural areas but most of them fall under the . by the end of the year 2012. Today. of which India will have a significant share. With more and more domestic and foreign tourists going to the popular tourist destination.3 million people. This has provided a fillip to the restaurant industry in the country.5 % on an average. According to recent surveys.The diverse culinary habits. According to recent surveys.
The Indian youth of today is very much inclined towards fast food and this has become a major factor towards the growth of these types of restaurants. New courses and study programs based on various sectors of the restaurant and food processing industries are also coming up to cater to students. In fact. This has increased the rate of foreign investments in the country having a favorable effect on the overall economy of the country. the restaurant industry has become a popular career option for the youngsters of India. consumer (the end user). the consumer patterns. There are different factors contributing for varying mind set of consumers. And. are of varying characteristics and buying behavior. With the open market and liberalization policies. It is thus natural that many differing segments occur within a market. the profit of this industry will also significantly rise. In order to capture this heterogeneous market for any product. who makes a market. The market for any product is normally made up of several segments. . more and more international restaurant chains are also opening their branches in various cities of the country. A systematic approach is required to increase the target audience in the rural sector. The future of the restaurant industry looks bright. With the increase in demand. marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentation.unorganized sector. A „market‟ after all is the aggregate of consumers of a given product. More and more people are opting to work in different segments of this industry to start a highly successful career. The growth of the restaurants in India has directly led to the growth of fast food eating outlets in the country. The foreign restaurants are setting up bases to cater to the vast consumer market in the country.
Thus we can say that market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer‟s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment. Through segmentation, the marketer can look at the differences among the customer groups and decide on appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have described segmentation as a strategy of dividing the markets for conquering them. MARKETING STRATEGY AND MARKET SEGMENTATION: - When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence). Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Basic steps in marketing strategy are as follows:-
Market Segmentation 1.Identification of customers' needs and market segments. 2.Develop profiles of resulting market segments.
Identification of Target Markets 3.Evaluation of attractivity of each segment. 4.Selection of target segments.
Positioning 5. Identification of differential advantages in each segment. 6. Development and selection of positioning concepts.
Marketing Planning 7. Development of a marketing mix for each segment according to the chosen position.
Strategic management process comprises four phases:
environmental scanning, strategy Strategic
formulation, strategy implementation and strategy evaluation and control.
management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates. Once the environmental scanning is done the next step is strategy formulation. Formulation produces a clear set of recommendations, with supporting justification, that revise as necessary the mission and objectives of the organization, and
supply the strategies for accomplishing them. In formulation, we are trying to modify the current objectives and strategies in ways to make the organization more successful. This includes trying to create "sustainable" competitive advantages -- although most competitive advantages are eroded steadily by the efforts of competitors. PORTER’S GENERIC BUSINESS STRATEGIES
cost Focused Differentiation
LOW COST LEADERSHIP STRATEGIES Low cost leadership strategies are based on a firm‟s ability to offer a product or service at a lower cost than its rivals. When a firm is able to build a substantial cost advantage over other competitors it can pass on its benefits to customers and gain a large market share. This requires being the overall low-cost provider of the products or services (e.g., Costco, among retail stores, and Hyundai, among automobile manufacturers). Implementing this strategy successfully requires continual, exceptional efforts to reduce costs without excluding product features and services that buyers consider essential. It also requires achieving cost
advantages in ways that are hard for competitors to copy or match. Some conditions that tend to make this strategy an attractive choice are: The industry's product is much the same from seller to seller
The marketplace is dominated by price competition, with highly price-sensitive buyers
There are few ways to achieve product differentiation that have much value to buyers Most buyers use product in same ways -- common user requirements Switching costs for buyers are low Buyers are large and have significant bargaining power
DIFFERENTIATION STRATEGIES When firm appeal to a broad cross-section of the market through offering differentiating features that make customers willing to pay premium prices, e.g., superior technology, quality, prestige, special features, service, convenience (examples are Nordstrom and Lexus). Success with this type of strategy requires differentiation features that are hard or expensive for competitors to duplicate. Sustainable differentiation usually comes from advantages in core competencies, unique company resources or capabilities, and superior management of value chain activities. Some conditions that tend to favor differentiation strategies are: There are multiple ways to differentiate the product/service that buyers think have substantial value Buyers have different needs or uses of the product/service Product innovations and technological change are rapid and competition emphasizes the latest product features Not many rivals are following a similar differentiation strategy
Focussed Cost Leadership and Focussed Differentiation. concentrating on a narrow customer segment and competing with lowest prices. making some segments more attractive than others Industry leaders don't see the niche as crucial to their own success Few or no other rivals are attempting to specialize in the same target segment e. niche or segment. profitability. there are many different niches and segments in the industry Buyer segments differ widely in size. Focussed cost Leadership: A market niche strategy. again. requires having lower cost structure than competitors Focused Differentiation: a second market niche strategy. which.. Firms can build focus in one of the two ways. growth rate. a high-fashion . Focus builds competitive advantage through high specialization and concentration of resources in a given niche. concentrating on a narrow customer segment and competing through differentiating features women's clothing boutique Some conditions that tend to favor focus (either cost or differentiation focus) are: The business is new and/or has modest resources The company lacks the capability to go after a wider part of the total market Buyers' needs or uses of the item are diverse.FOCUS STRATEGIES Focus strategies aim to sell good or services to narrow or specific target market.g. and intensity in the five competitive forces.
such as. Pressures for local responsiveness makes a firm tailor its strategies to respond to national-level differences in terms of variables like customer preferences and tastes. Firms adopt a multidomestic strategy when they try to achieve a high level of local responsiveness by matching their products and services offerings to the national conditions . by maintaining a tight control over its overseas operations. McDonald.GLOBAL STRATEGIES Developing strategies on a global scale is not an easy task. International Strategy. government policies. GLOBAL EXPANSION STRATEGIES A firm can choose four types of strategies . Coca Cola.Global Strategy. face political uncertainties. Most international companies. or business practices Firms adopt an international strategy when they create value by transferring products and services to foreign markets where these products and services are not available. IBM. Transnational Strategy and Multidomestic Strategy Two sets of factors affect firm‟s decision to adopt international strategies: extent of cost pressures and the extent of pressures for local responsiveness. and several others adopt this strategy for the different countries they operate in. This is a simple strategy in the sense that an international firm. Cost pressures denote the demand on a firm to minimize its unit costs. Proctor and Gamble. deal with volatile currencies. Microsoft. Kellogg. Managers have to learn other languages. offers standardized products and services in different countries with little or no differentiation. and redesign products to suit different customer needs and expectations. understand host country laws.
production. the firm produces in the home country and markets in the overseas markets. The different entry modes are: (1) Export entry modes: Under these modes. Mode of entry means the manner in which the firm would commence its international operations. There are several entry modes. the multidomestic firm attempts to extensively customize their products and services according to the local conditions operating in the different countries. The global firm tries to focus intensively on a low-cost structure by leveraging their expertise in providing certain products and services. usually at competitive prices. each with their own sets of advantages and disadvantages. it has to decide the best mode of entry.operating in the countries they operate in. MARKET ENTRY STRATEGIES Once the MNC decides to target a particular country. research and development. Pressure for local responsiveness Firms adopt a global strategy when they rely on a low-cost approach based on reaping the benefits of experience-curve effects and location economies and offering standardized products and services across different countries. such as. In this case. and concentrating the production of these standardized products and services at a few favorable locations around the world. Firms adopt a transnational strategy when they adopt a combined approach of lowcost and high local responsiveness simultaneously for their products and services. These products and services are offered in an undifferentiated manner in all countries the global firm operates in. this leads to a high-cost structure as functions. . and marketing have to be duplicated. Obviously. A firm would have to decide which mode suits its circumstances best before it could be adopted.
Licensing is an arrangement where the international company transfers knowledge. technical agreements (for technology transfers). Other forms of contractual arrangements. . build-operate-transfer (BOT) arrangements. Indirect exports involving intermediaries in the home country and who are responsible for exporting the firm‟s products. Direct exports do not involve home-country intermediaries and marketing is done either through direct agent/distributor or through direct branch/subsidiary in the overseas markets. (2) Contractual entry modes: These modes involve non-equity associations between an international company and a company or any other legal entity in the overseas markets. usually a royalty payment. such as. patent. contract manufacturing. turnkey operations. Franchising: Franchising involves the right to use a business format. (3) Investment entry modes: These modes involve ownership of production units in the overseas market based on some form of equity investment of direct foreign investment. and so on for a limited period of time to an overseas entity in return for some form of payment. service contracts (for technical support or expertise provision). in the overseas market in return for the franchise receiving some form of payment. etc. usually a brand name. technology. production sharing.
The top management views its product lines and business units as a series of investment from which it expects a return. (These entry options have been discussed earlier under the heading of cooperative strategies. Such facilities may be created either through a new venture known as a Greenfield venture or acquired through takeover strategies.) Independent ventures or wholly-owned subsidiaries are modes in which the parent international company holds 100 percent equity and is in full control. It deals with how individual product lines and business units can gain competitive advantage in the marketplace by using competitive and cooperative strategies. Strategic Analysis and Choice tries to find out answers to three basic questions: How effective has the existing strategy been? How effective will that strategy be in future? What will be the effectiveness of selected alternative strategy in future? Portfolio Analysis Portfolio Analysis is analyzing elements of a firm's product mix to determine the optimum allocation of its resources. STRATEGIC MANAGEMENT STRATEGIC ANALYSIS AND CHOICE Strategic Analysis and Choice seeks to determine alternative courses of action that could enable the firm to achieve its mission and objectives. It is used in Multi Business Corporation to develop corporate strategy. Joint venture and strategic alliances involve a cooperative partnership between two or more firms with financial interests as the basis of cooperation. It helps the company to answer the following questions: .
How much of our time and money should we spend on our best products to ensure that they continue to be successful? How much of our time and money should we spend developing new costly products. hence the name "growth-share". BCG GROWTH-SHARE MATRIX It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor. The market growth rate provides a measure of market attractiveness. most of which will never be successful? The two best-known portfolio planning methods are the Boston Consulting Group Portfolio Matrix and the McKinsey / General Electric Matrix. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability The relative market share serves as a measure of SBU strength in the market. Each of the corporation‟s product lines or business units is plotted on the matrix according to both the growth rate of the industry in which it competes and its relative market share .
these products are “milked” for cash that will be invested in new question marks. Question marks are growing rapidly and thus consume large amounts of cash.Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. but also consume large amounts of cash because of their high growth rate. but because they have low market shares they do not generate much cash. Cash Cows . They are typically at the peak of their product life cycle. Question marks . Eventually their growth will slow and will become cash cows. successful businesses with relatively little need for investment. In this decline stage of their life cycle.The Boston Consulting Group Box ("BCG Box") Stars . Stars generate large amounts of cash because of their strong relative market share. These are mature. A question mark (also known as a "problem child") has the potential to .Cash cows are low-growth businesses or products with a relatively high market share. Often they need heavy investment to sustain their growth. They typically bring in far more money than is needed to maintain their market share.Question marks are businesses or products with low market share but which operate in higher growth markets.
a consulting firm. and eventually a cash cow when the market growth slows.gain market share and become a star. Management have to think hard about "question marks" .Pricing trends .Market growth .Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. Its limitation is market growth rate is only one factor in industry attractiveness. If the question mark does not succeed in becoming the market leader.the relative positions of the firm's entire business portfolio can be displayed in a single diagram. GE Business Screen includes nine cells based on long-term industry attractiveness and business strength/competitive position Factors that Affect Market Attractiveness: There are several factors which can help determine attractiveness. The Boston Consulting Group Portfolio Matrix simplicity is its strength .Market profitability . Such businesses are candidates for divestiture. However. dogs are cash traps because of the money tied up in a business that has little potential. then after years of cash consumption it will degenerate into a dog when the market growth declines.which ones should they invest in? Which ones should they allow to fail or shrink? Dogs . These are listed below: . and relative market share is only one factor in competitive advantage.Market Size . The growth-share matrix overlooks many other factors in these two important determinants of profitability GE BUSINESS SCREEN It is the business portfolio framework developed by General Electric with the help of McKinsey and Company.
with the information conveyed as follows: Market size is represented by the size of the circle.Relative brand strength .Customer loyalty .Relative cost position (cost structure compared with competitors) . These are listed below: .g.Distribution structure (e.Market share .Record of technological or other innovation ..Distribution strength .Opportunity to differentiate products and services . direct.Overall risk of returns in the industry .Access to financial and other investment resources Plotting the Information Each business unit can be portrayed as a circle plotted on the matrix.Strength of assets and competencies . The expected future position of the circle is portrayed by means of an arrow. retail. Market share is shown by using the circle as a pie chart. . wholesale Factors that Affect Competitive Strength: There are several factors which can help determine the business unit strength.Competitive intensity / rivalry .Segmentation .
and that the business unit is in an industry that is projected to become more attractive. The arrow in the upward left direction indicates that the business unit is projected to gain strength relative to competitors. The shading of the above circle indicates a 40% market share for the strategic business unit. They go for Retrenchment Strategies (Divestment and Liquidation).The green zone indicates go ahead. It includes the strong SBU‟s in which the company should invest and grow. The tip of the arrow indicates the future position of the center point of the circle. They go for Expansion Strategies The yellow zone indicates wait and see. Six-step approach for the implementation of the McKinsey Matrix . They go for Stability Strategies The red zone indicates stop. They should maintain their level of investments. It includes SBS‟s that are medium in overall attractiveness. It includes SBU‟s that are low in overall attractiveness.
Make use of adjusted other weights and scores (there may be no consensus). need to be dealt with in the formulation phase of strategic management. each with a different focus. Specify drivers of each dimension. . Multiply weights and scores for each SBU. Perform a review/sensitivity analysis. in the order given. 6. View resulting graph and interpret it.1. The corporation must carefully determine those factors that are important to its overall strategy. The corporation must assign relative importance weights to the drivers. Score the SBU's on each driver. 3. The three sets of recommendations must be internally consistent and fit together in a mutually supportive manner that forms an integrated hierarchy of strategy. Determine the weight of each driver. 5. 4. THREE LEVELS OF STRATEGY FORMULATION The following three aspects or levels of strategy formulation. 2.
CHAPTER II COMPANY PROFILE .
Bombay in 1903. UK. Mr.INTRODUCTION TO THE COMPANY HISTORY The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and are recognized as one of Asia‟s largest and finest hotel company. The Taj. Australia. the company opened its first property. The Taj Mahal Hotel is located in the exclusive residential area of Lutyens‟ Delhi. THE TAJ MAHAL HOTEL. USA. Incorporated by the founder of the Tata Group. Bhutan. blended effortlessly with contemporary comforts and amenities. NEW DELHI One of the most distinguished addresses in the national capital. In its unique blend of warmth and welcome and assiduous attention to service. a symbol of Indian hospitality. The Taj Mahal Palace Hotel. Malaysia. close to the seat of government. completed its centenary year in 2003. Jamsetji N. Africa and the Middle East. Reflecting the heritage of Mughal Delhi. Sri Lanka. Tata. . this hotel offers graceful architecture with modern facilities. The Taj Mahal Hotel is a true ambassador of the Taj hospitality experience. Central to The Taj Mahal Hotel‟s prominence is its old-world grace and charm. Taj Hotels Resorts and Palaces comprises 66 hotels in 42 locations across India with an additional 16 international hotels in Maldives.
Samsara Properties Limited 8. James Court Hotel Limited 4. IHOCO BV 6. Tifco Holdings Limited 2. Roots Corporation Limited 6. KTC Hotels Limited 3. Residency Foods & Beverages Limited International Subsidiaries 1. Taj SATS Air Catering Limited 5. Taj International Hotels Limited 7. Ltd.ORGANIZATION STRCUTURE CORPORATE HOLDING STRUCTURE Corporate Information Domestic Subsidiaries 1. Associates Domestic 1. United Hotels Limited 4. St. 2. Apex Hotel Management Services Pte.) Limited 3. Ice & Cold Storage Company Limited .K. International Hotel Management Services Inc. IHMS (Australia) Pty Limited 9. Chieftain Corporation NV 5. Taj International Hotels (H.
Taj Trade and Transport Limited 6. TAL Lanka Hotels Plc 3. Taida Trading and Industries Limited 8.2. Taj Enterprises Limited 7. Prestige Garden Resorts Private Limited International 1. BAHC 2 Pte Limited 5. BAHC 1 Pte Limited 4. Taj Air Limited 4. Inditravel Private Limited 9. Skydeck Properties and Developers Private Limited 14. ELEL Hotels & Investments Limited 16. Lands End Properties Private Limited 12. Luthria & Lalchandani Hotel & Properties Pvt. Piem Hotels Limited 5. 13. Oriental Hotels Limited 10. Lanka Island Resorts Limited 2. Ltd. Business Jets Pte Limited . Taj Madurai Limited 11. Cullen Oakes Corp 6. Benares Hotels Limited 3. Kaveri Retreats & Resorts Limited 17. Sheena Investments Private Limited 15.
7. Platinum Leasing Limited 10. Joint Ventures Domestic 1. Taj Safaris Ltd. Taj GVK Hotels & Resorts Limited 5. IHMS Hotels (SA) (Proprietary) Limited . Ltd 11. 3. Ltd. Bjets Asset Holdings Pte Limited 8. 4. TAL Hotels and Resorts Limited 2. Taj Madras Flight Kitchen Pvt. Taj Kerala Hotels & Resorts Ltd. Business Jets (India)Pvt. Taj Asia (Thailand) Ltd. Bjets Pte Limited 9. International 1. 2. Taj Karnataka Hotels & Resorts Ltd.
TAJ GARDEN RETREATS LOCATED AT BEACH RESORTS.CURRENT SALES Positioning The Taj marked out three separate entities for the Taj Group: Business. their „territory‟ is scattered geographically. . PILGRIM CENTRES ETC. TAJ RESIDENCY. Segmentation THE TAJ GROUP OF HOTELS SEGMENTATION TAJ LUXURY HOTELS – TAJ PALACE. Which meant that though the heads of these three divisions sat at head office. PALACES. TAJ CONNEMARA. There was a proliferation of the Taj Presidency hotels not only in new cities. that the hotels became operationally different. in the mid nineties. but also smaller towns. TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE TAJ BUSINESS HOTELS: TAJ PRESIDENT. TAJ BLUE DIAMOND OFFER MULTI – CUISINE RESTAURANTS & BEST BUSINESS FASCILITIES TAJ LEISURE HOTELS: TAJ BEACH RESORT. TAJ BENGAL. it was in 1999-2000. Strategy A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive as compared to the luxury segment). Though the concept of these sub-brands had come into existence earlier. TAJ MAHAL. according to which type of hotel they look after. TAJ CULTURAL CENTRE. Leisure and Luxury.
renovation was in full swing. Rooms were revamped. a continual benchmarking against international standards was made part and parcel of the culture of the Taj. Advertising It was only when the product was ready. But this had to be dropped after a few years due to disuse. Other innovations have happened too. It meant putting in optic fiber cabling. Major renovation By the mid 1990‟s. fax machines ere installed in the room. For instance it was thought a mini-gym on the floor would be a convenience. the Taj also dropped communication charges by 33 per cent. business centers rebuilt. The sales and marketing functions were separated. advertising had been restricted to the major feeder markets: the US. In the process. Germany. Not only were mobiles provided on hire. Unprofitable ventures were hived off. was a major advertising campaign developed. Singapore and Hong Kong. the Taj went ostentatious with its new business floors. More than a hundred million dollars were reportedly spent for renovation – just in the lifestyle (luxury segment)! Since the business segment was slated to be become big (and those using it were likely to be non-traditionalists). It was found that telephone usage was dropping because of the advent of mobile phones. it launched a corporate campaign to reinforce this new identity. adding to and complementing the brand. Moreover.The group also kept looking at new opportunities. And the advertising emphasized the hardware aspect of the hotel. Though the Taj had high unaided recall. Initially. They had to go with the advent of the internet and laptops. The identity was developed after extensive research on the .‟ says Krishnakumar. „The action plan is more opportunities. The new campaign developed a specific brand identity for the hotel. The HRD department modernized. More changes There were other changes. The ad (made by Rediffusion) shows the enigmatic woman who stands for both hospitality and efficiency. It meant ripping out entire floors. Earlier. The organization was made to flatter and more compact. remote control systems and giving the business guy a lounge where he could relax and even have breakfast. UK. Consolidation. some mistakes did happen. Units across the country were refurbished. It included a min-business centre. with an emphasis on performance and career and succession planning.
The reason is clear. but quality. the greeting or the welcome drink. This was translated into creating a distinct personality of the Taj as caring. efficient and enigmatic. The insights gathered were analyzed and a clear slot. Over 60 in-depth interviews were conducted by client and agency. which the Taj could occupy when global competition arrived. . The parameters? Not quantity. The quality of check-in. It never slept. emerged. Slowly the hotel became more profitable than it had ever been. the smile. The things done right.‟ Success Other hotels‟ room occupancies plunged to as low as 37 % during the recession and average room occupancy rates across all hotels were approximately 50 per cent. The line went: „She is the Taj.‟ The base line was „Nobody cares as much.consumer‟s attitudes towards the Taj. The Taj maintained a far higher average and continued to grow and expand.
Mumbai and Taj West End. Both the hotels are under construction and will open in the current financial year. under the brand name "Ginger". 000 sq. IHCL has secured two management contracts for a high end luxury resort and an upmarket resort in Kovalam. These will be a combination of Day and Destination Spas of international standards. Mumbai and Taj Lands End. Associate companies viz. approximately that is yet to be built. feet. Kerala. In the long run. IHCL continues to pursue management contracts in India as well as in South and South East Asia. IHCL will see growth through the addition of 80 Luxury Residences at the Taj Wellington Mews. with roll out being planned in a number of cities and towns subsequently. Mumbai and is in the process of launching Spas in a number of hotels.Indian Spa. ft. Bangalore. this segment will help in derisking the current revenue stream of the company. Spas IHCL successfully launched the Taj Spa in the Taj Mahal Palace & Tower. . These hotels will cater to the economy or 'value for money' segment and being predominantly domestic clientele based. which will include adding rooms and developing highend offices or retail space created in the new 50. which would add to the properties under the Taj group. Mumbai.000 sq. Ginger Hotels IHCL is in the process of rolling out its Smart Basics hotels.000-12. with a unique treatment menu developed by the Taj. Spas are being planned in Taj Wellington Mews. Taj GVK Hotels & Resorts Limited and Oriental Hotels Limited are also in the process of setting up properties in Chandigarh and Bangalore respectively. as well as rooms added at Taj Lands End. block.PRODUCT MIX KEY INITIATIVES Update on Key Initiatives Growth In the coming years. Mumbai. are far less prone to fluctuations than the luxury and upscale segments. We will aim to reach this capacity over the next two years.000 sq. ft. They will be the first and one of a kind . Taj West End will have approximately 175 rooms added to it over the next two years. The Taj Lands End is a hotel built with a capacity of 500 rooms with an additional 50. The Spas being rolled out in the key properties will be state-of-the-art. The first prototype has been launched in June 2004 in Bangalore. having areas in excess of 10.
Udaipur and Rambagh Palace. In the last financial year IHCL upgraded rooms at the Taj Mahal Palace & Tower. Mumbai and Taj West End. Jaipur were also renovated to provide a luxurious sense of arrival. the properties are being relaunched to be at par with international level upscale hotels. In order to take care of the entire stay experience. has at its core. The rooms at Taj President. IHCL has also completely revamped its Concierge services.Brand Architecture IHCL is in the process of clearly defining the product and service standards in order to have consistency across properties under each brand. In the upscale segment. Bangalore. IHCL has constantly benchmarked itself with the key international luxury chains and strived to raise the bar. Product Upgradation IHCL continues to invest in renovation and relaunch of key / brand defining properties. The Centers of Excellence have been strengthened considerably to train staff to meet the exacting standards of a truly luxury hotel. The TBEM has been rolled out in all the three hotel divisions and will be rolled out to the international properties also. IHCL's service excellence philosophy. including butler services in its luxury properties. Tata Business Excellence Model (TBEM) will play a significant role in raising the bar of service provided. Jaipur and Taj Holiday Village. Mumbai. Bangalore The lobby and public areas of Taj Lake Palace. The Sea Lounge and Harbour Bar at Taj Mahal Palace & Tower. . In the coming year IHCL intends to open a number of F&B outlets by celebrity Chefs with international cuisine. Goa are being renovated and relaunched. Taj Residency. Bangalore The renovated products and the new outlets were very well received in the market. Mumbai was relaunched. IHCL has taken a number of steps to provide highly personalized service to the discerning customer. Jai Mahal Palace. This will help in further enhancing the brand value of Taj. processes and culture. Service Excellence In the last few years IHCL has undertaken a number of steps to significantly enhance service levels to be in line with the best in class. Bangalore have emerged as the price leaders in the respective cities. Mumbai and Taj West End. delivery through our people. while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End. The renovated rooms at Taj Mahal Palace & Tower.
The feedback would ultimately be used for product planning as well. Feedback is not restricted to only guest difficulties (complaints) but also consists of compliments and suggestions. This has resulted in a steep change in service levels. Till date. which is to be facilitated by Tata Quality Management Services. Based on the External Assessment (2003) feedback report and the feedback from the Internal Assessment. have been drawn out and worked upon. and car hire service in key hotels of the group. IHCL conducted Internal Assessments based on the Tata Business Excellence Model for Luxury. the system has clocked around 12. The Luxury Division has also applied for External Assessment. Reinforcement of the use of the Balanced Scorecard: The use of the Balanced Scorecard (BSC) has been strengthened across the organization. The feedback from all sources gets recorded and aggregated and analyzed to improve the service quality in areas of concern at each of the hotels.000 pieces of customer feedback. We are thus able to benchmark & gauge our performance against international luxury and superluxury hotels and upgrade our standards. Introduction of international best practices: Taj group is using the expertise of international consultants and domain experts who work with us in different functional and operational areas in order to introduce world-class practices. butler service. It is the primary and sole customer feedback system of the group. action plans to improve processes which finally impact the overall organizational effectiveness. Leisure. Rollout of the Customer Feedback System (CFS): The CFS was launched in November 2003 and has taken root in 30 hotels across Taj group. The key strategic objectives are captured in the BSC and cascaded across . Some of the key initiatives deployed across key hotels of the Taj group in the year 2003-04 are: Raising the bar in terms of product & service quality: In order to raise the standards of service & product quality to international levels.Tata Business Excellence Model (TBEM) In order to intensify the drive for Business Excellence. It is used as the key strategy deployment tool. We have launched the concierge service. Business SBUs as well as for Taj SATS Air Catering Limited. we have re-introduced Richey Audits.
Mini-bar. has made significant progress since its inception in July 2002. We also continue to restructure our balance sheet and reduce the number of under performing / non-performing assets. The programme has identified improvement ideas across areas like Rooms. Chiplun. TOP IHCL's operational improvement programme. Such restructuring. being managed jointly with McKinsey & Company. In addition. Corporate Restructuring In order to make IHCL leaner and carry brand standards across domestic and international properties. the TOP team has been working with a cross functional team to develop a strategy for maximising revenues from key corporate accounts. Taj group has today achieved domestic leadership in deploying IT to leverage its competencies and is rapidly approaching benchmarks set by international highly regarded chains. In the last financial year. The focus of the TOP team for the next few months will be in ensuring that all identified improvement ideas are fully implemented. Wines. so as to make the corporate setup leaner and more agile. 37. Business and Leisure divisions. The first three phases of implementation of the IT strategy included putting in place the physical infrastructure across the Taj Group and getting customer relationship applications to ride on this physical infrastructure. IHCL sold the Gateway Riverview Lodge. In-room dining. the team will continue to focus on cost areas and address new areas like restaurant revenues and capital expenditures.25 crores. All the SBU scorecards are aligned with the corporate scorecard. . IT initiatives From a situation in 1999 where there was limited IT application. IHCL would continue to convert to cash / productive use the idle and non-performing assets as well as restructure under performing properties.the units & departments. Purchase. TOP (Total Overdrive for Profits). Banquets. Engineering. which did not meet brand standards. the International division was merged with the Luxury. with a view to enhancing customer services through customer information and recognition systems and better inventory management. Chambers and several other operational areas. as well as the HR & Sales & Marketing scorecard. In addition. resulted in a net inflow of Rs. in the previous year.
However. Initially it was smooth sailing. share prices remained buoyant and dividend payment kept up. a comprehensive back office system. Legend has it that this was one of the reasons why Jamshetji Nusserwanji Tata. more powerful brands. withstand the test of time. even though the original hotel was conceived and built when the hotel business was not even considered an industry. the flagship of the Group was born in 1903 and stood alone for almost half a century. It was a place where the . however. implementing Revenue Management system. Their investment plans continued unabated.Some of the key IT initiatives being under taken by IHCL are Orion. Like the Taj. Interactive TV Systems and National Call Center. the first Indian industrialist built India‟s first luxury hotel. The first Taj Hotel. others are swallowed by bigger. Right from the beginning. the Taj stood for class and comfort. Our Taj. the hotel has faced some rough times. MARKET POSITION Some brands die a quiet death. He went ahead with the project although he was busy with plans to industrialise India. How did the Taj manage to achieve this? Let’s go back to the beginning The Taj was built at a time when Indians were not allowed entry into most of the prestigious hotels and clubs in British ruled India. Some. The Indian Hotel Industry went through a recession in the nineties but the Taj survived it better than most hotels.
an aerated water bottling plant. but absolutely international in terms of systems and processes and with a strong West European focus. Pioneers In the early seventies came the Lake Palace in Jaipur. Expansion The chain started expansion only in the 1970‟s under the leadership of Ajit Kerkar. it soon became one of the wonders of the Orient. present globally.K. But overall. The way forward was to make sure that the entire Taj team is imbued with the missionary zeal to sell the brand. perhaps in character. Notably. he made sure that the Taj would have it‟s own laundry.viceroys of the Empire arrived and departed amidst scenes of splendour. The hotel was built completely at a cost of 500. In fact. a crockery washing plant and elevators. electroplating for it‟s silverware. The reason the hotel towered above the rest was because of the amazing attention to detail that was paid by it‟s founder Jamshetji Tata. the Taj has a higher dollar rate of revenue – approximately 70 per cent comes from international guests. particularly in the metros. In fact. a Mora sliver burnishing machine. there was hardly any advertising directly to the consumer.000 pounds in 1903. Krishnakumar. The Taj Intercontinental (the new wing) was built in 1971. Today this has become an USP of the Taj group. Asian. In the mid 1970‟s the chain expanded to Chennai (Taj Coromandel and the Fisherman‟s . Even the profile of the Indian customer was changing. Kerkar had a big role to play in the rapid expansion of the Taj. R. Their vision Says Managing Director.‟ Their customers International travelers from the bulk of the market for the Taj. Singapore‟s Raffles or Hong Kong‟s Peninsula did not come up to the level of the Taj inspite of their rich ancestry. Scenes which were typical of the Raj. The company pioneered the concept of conversion of century-old palaces into hotels. „The vision for the Taj Group is for it to be a select chain. As far back as 1900. this element of the marketing mix was not visible until the late nineties! Advertising was not considered necessary. Secondly the company was conservative and media shy for many years.
More hotels In the 1980‟s. It did not think that data from research agencies such as the airline and the travel industry were enough. The organisational structure had become almost feudal with 49 general managers reporting directly to the chief executive. Something had to done to keep up the growth graph. The Group carried out extensive research to understand current lifestyles. The research attempted to discover whether the future customer would be more egalitarian. to its dismay that there was a clear lack of transparency. Goa was not as much of a tourist‟s paradise that I it became later on. On the other. Research As far back as the early nineties. Turbulent times However. . Positioning The Taj marked out three separate entities for the Taj Group: Business. and one each in Chennai. research also indicated that the company‟s existing customers base of traditionalists – those who liked the Taj because it was understated yet classy – was shrinking. Though the concept of these sub-brands had come into existence earlier. Excess capacity made some of the ventures unprofitable. in the mid nineties. The end of the decade saw the coming up of the Taj at Delhi. The Taj had to change the way it viewed the world – if it wanted to remain a market leader. Next came the Jaimahal Palace Hotel in Jaipur as well as the New Delhi Flight Kitchen. without any interaction amongst themselves. Taj scored over the others with it‟s timing. Here too. two more hotels were built in Delhi. two in Bangalore. it was realised that formal market research was a must to help understand the consumer better. it appeared that nothing could held the phenomenal growth of the Taj. The new hotels were build taking the original Taj as the model hotel. The last marked the start of an ethnic style in hotels with international standards. Lack of transparency The new management also realised.Cove) and Fort Aguada at Goa. At that time. Around the same time it set up the Taj Ganges in Benares and started international flight kitchens too. specially overseas ones. more democratic or would she want to be pampered? The findings revealed that she would like exclusivity more than anything else. Ooty and Agra. Leisure and Luxury. By this time. cracks had become evident as the recession loomed large over the Indian economy.
was a major advertising campaign developed. renovation was in full swing. Advertising It was only when the product was ready. remote control systems and giving the business guy a lounge where he could relax and even have breakfast.‟ says Krishnakumar. Germany. Which meant that though the heads of these three divisions sat at head office. It meant putting in optic fiber cabling. Other innovations have happened too. business centres rebuilt. They had to go with the advent of the internet and laptops. It included a min-business centre. their „territory‟ is scattered geographically.it was in 1999-2000. according to which type of hotel they look after. Earlier. Consolidation. Initially. In the process. The sales and marketing functions were separated. some mistakes did happen. . that the hotels became operationally different. More changes There were other changes. It meant ripping out entire floors. Unprofitable ventures were hived of. Moreover. Major renovation By the mid 1990‟s. It was found that telephone usage was dropping because of the advent of mobile phones. The HRD department modernized. but also smaller towns. More than a hundred million dollars were reportedly spend for renovation – just in the lifestyle (luxury segment)! Since the business segment was slated to be become big (and those using it were likely to be non-traditionalists). But this had to be dropped after a few years due to disuse. the Taj also dropped communication charges by 33 per cent. adding to and complementing the brand. „The action plan is more opportunities. For instance it was thought a mini-gym on the floor would be a convenience. Strategy A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive) as compared to the luxury segment). a continual benchmarking against international standards was made part and parcel of the culture of the Taj. Rooms were revamped. The group also kept looking at new opportunities. There was a proliferation of the Taj Presidency hotels not only in new cities. Not only were mobiles provided on hire. Units across the country were refurbished. advertising had been restricted to the major feeder markets: the US. fax machines ere installed in the room. the Taj went ostentatious with it‟s new business floors. The organisation was made to flatter and more compact. with an emphasis on performance and career and succession planning. UK.
efficient and enigmatic.‟ Success Other hotels‟ room occupancies plunged to as low as 37 % during the recession and average room occupany rates across all hotels were approximately 50 per cent. Over 60 in-depth interviews were conducted by client and agency. Though the Taj had high unaided recall. The line went: „She is the Taj. which the Taj could occupy when global competition arrived. The new campaign developed a specific brand identity for the hotel. The things done right. This was translated into creating a distinct personality of the Taj as caring. The parameters? Not quantity. The ad (made by Rediffusion) shows the enigmatic woman who stands for both hospitality and efficiency. And the advertising emphasised the hardware aspect of the hotel. Slowly the hotel became more profitable than it had ever been. but quality. emerged. . The insights gathered were analysed and a clear slot.‟ The base line was „Nobody cares as much. The reason is clear. The identity was developed after extensive research on the consumer‟s attitudes towards the Taj. the greeting or the welcome drink. It never slept.Singapore and Hong Kong. the smile. The Taj maintained a far higher average and continued to grow and expand. it launched a corporate campaign to reinforce this new identity. The quality of check-in.
sightseeing etc. these contemporary rooms are well equipped with modern guest amenities. banquets. health club. palaces and historic and pilgrim centres with a wide variety of activities for all age groups. Leisure and Business. The hotels are grouped into 3 categories . The marketing mix of taj hotels is explaine as below:Product The brand “Taj Hotels Resorts and Palaces "comprises 58 hotels across India and 17 hotels in international locations. The Taj Luxury Hotels offer lavish accommodation.Luxury. ticketing. This space is supplemented with the services they provide like the restaurants. Types of Accommodation: DELUXE ROOMS Measuring 357 square feet. Their other supplementary products also include travel arrangements.DIRECT COMPETITORS The oberoi. bar. The hotels are grouped into 3 categories . The Taj Luxury Hotels offer lavish accommodation. Taj Leisure Hotels are targeted at family holidays and include beach resorts.Luxury. fitness centre and spas and well-equipped business Taj believes that the their core product is space. garden retreats. The Lalit The Hilton FUTURE PLANS The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels globally. business centres etc. . Leisure and Business. gourmet specialty restaurants and bars. gourmet specialty restaurants and bars. discotheque. Taj Business Hotels offer contemporary business facilities and modern conveniences and are located in the heart of India‟s key commercial cities and towns. fitness centres and spas and well-equipped business and banquet facilities. Classical decor and refined ambience make these recently refurbished rooms an ideal choice for the discerning business traveler. airport pick-ups.
convenience. steam and Jacuzzi in the fitness centre. a fruit basket and a choice of newspapers and magazines. chocolates. as well as a 24-hour invisible butler. which showcases the President's Palace. have complimentary use of the meeting room at the Taj Club. lounge/ living room with a workstation. walk-in closet and a large bathroom including bathtub and a separate shower cubicle. with the pleasing addition of a complimentary buffet breakfast. plush surroundings and the most luxurious of amenities.m.These rooms also offer stunning views. early check-in at 9:00 a. these suites measure 778 square feet and offer remarkable amenities. fresh flowers. . including a complimentary bottle of imported wine. Guest services include complimentary airport pick-up. tea and coffee and cocktails in the Taj Club lounge. Humayuns Tomb and the Taj Mahal Delhi gardens. The privileges of the Taj Club are also included. Guests have a choice of pool view or Lutyens' city view.m. India gate and the Raj path. Guests are welcome to enjoy complimentary breakfast. TAJ CLUB ROOMS Discerning travelers know that the Taj Club never disappoints. guests can enjoy an unbroken view of the skyline. and executive level style. EXECUTIVE BALCONY SUITES A combination of comfort. Club rooms offer stunning views. assistant and provider for all a guest's needs. Since The Taj Mahal Hotel is the only high rise in this area. and late check-out at 6:00 p. The butler becomes the guest's one point of contact assuming the all-important role of guide. These suites have an enclosed balcony that overlooks the pool and lawns against a backdrop of Mughal Delhi. (subject to availability) and a welcome drink on arrival. These rooms feature a bedroom. LUXURY ROOMS The same amenities and views as the Deluxe rooms. and full use of the gymnasium.
Machan is a 24 hour coffee shop located at the lobby level. Edwin Lutyens. a private workout area. The suites offer fascinating vistas of the city both the Presidential Palace view and the pool view. LUXURY SUITES These picturesque suites are named the Oriental. . With linen. bedroom. These suites. the suite contains many of his original drawings and architectural motifs. with a safari décor. They have a spacious living room. GRAND PRESIDENTIAL SUITE A tribute to the grand designs of Delhi's chief architect. using an interconnecting room. The artwork and antiques recreate old world charm with a blend of modern amenities and gracious personalized service. a master bathroom. a living room. a private pantry. a vanity room. a dining room and a powder room that can be interconnected with two more bedrooms. The privileges of the Taj Club are included. and dining room with a pantry. Literally. including furniture that has been adapted from his sketches. Rajputana and Tanjore and are themed accordingly. crockery and cutlery from purveyors of true luxury. An honour that we are delighted to receive repeatedly for this suite. FOOD & BEVERAGE OUTLETS Machan First round the clock. is called the capital city‟s most popular one. have the option to be converted to a two bedroom suites. Through the years various difnitaries and heads of state have made this their home. a library. truly international eatery. measuring 1031 square feet. the suite comprises a master bedroom.
Despite catering to totally divergent tastes. Norwegian salmon. USP of The House of Ming: It has an excellent brand image being a part of the Taj Group of Hotels It is centrally located in the heart of New Delhi. serving authentic Chinese cuisine. the Canton cuisine pampers the palates of those who prefer subtle and light food. Seating capacity:Accommodate up to 128 covers. oriental and Indian with selection of soup. Best Sunday brunch. USP‟s of Machan: It is the first coffee shop in Delhi. House of Ming Arguably the premier Chinese restaurant in Delhi. oyster. Offer best of seafood includes Sevruga caviar. Offers a lavish buffet spreads of continental.Machan actually means the „elevated portion‟ in the jungle that is used for the purpose of hunting. . the House of Ming has consistently maintained its standards and remains one of the most socially prominent places in which its standards and remains one of the most socially prominent places in which to dine. king prawns. lobster. and much more with south East Asian and Indian selection also includes unlimited Champagne. salad and dessert.While the Schezuan style offers deliciously hot and spicy fare. Very elaborate a-la-carte menu selection. the House of Ming enjoys the patronage of the haute and happening of the city. It was the first Chinese restaurant to open up in the city.
Visually spectacular in every way.Seating capacity: The restaurant can seat 154 guests at a time. Rick‟s is the place to down magnificent martinis. mojitos and malts. Theme nights Wasabi by Morimoto . modern Indian gourmet dining. combining authenticity in taste with sheer artistry in presentation. Capacity: 72 covers USP of Rick‟s: Innovative and authentic cocktails Lounge music on weekdays and retro to groove on weekends Wokkerie food concept Trendy casual dining experience. this elegant Indian restaurant includes a private dining room for fourteen. Seating Capacity: 76 seater Rick’s This swish bar has long been a perennial favorite of Delhi‟s smart set. which can be extended to 180. It serves up. ranging from Torpedos to Tubos and a selection of delectable dishes from the Wokkerie ensures that you always have a spirited evening. a choice of some of the most exquisite Cuban cigars. Varq is symbolic of preciousness which is reflected amply in the cuisine and the décor of the restaurant. Varq is a harmonious blend of traditional and contemporary sophistication. Varq The signature Indian restaurant combines international ingredients with age old gastronomic traditions. collated in a bespoke drinks list. Along with those.
g. all the Taj services and facilities are provided at one point. a lively teppanyaki counter. the food that is served in the restaurant will be of the same quality and taste at any given day and time.Wasabi by Morimoto is certain to please the food connoisseur in both substance and style. and an array of choices for vegetarians. they have Standard Operating Procedures (SOP). Grill Room The Grill Room located on the Hotel‟s rooftop offers an exclusive European dining experience. and in India. San Francisco. Campton Place. Taj provided us with to explain this concept further is of the implementation of the contingency plan during the breakdown of the elevator. e. Its cuisine caters to different palates f the modern gourmand. The Taj has many hotels around the world. Place and Time As far as place is concerned. With clean lines. they have set processes in place and in case of failure or delay of service. Open only to resident guests for dinner. Boston. Contemporary with distinctive Japanese roots. 51 Buckingham Gate. Wasabi by Morimoto is indeed a gourmet‟s delight. To ensure timely delivery of their services. Seating capacity:The 52 cover restaurant provides a variety of diverse dining experiences. New York. they have built in contingencies and trained their staff to communicate the delay to the customer in the right manner. the restaurant emphasizes global cooking for 21st century. Taj Boston. the Room Service makes use of the elevator in the other wing to ensure timely delivery to the customer. Its unique take on continental cuisine has won it international acclaim. it demonstrates a higher order of expertise in serving up delightful European specialities in a table d‟hote format. . In case of breakdown of the elevator. These include: The Pierre. To ensure standardization in their services.
Taj Exotica Resort & Spa.London. The Taj West End. Cochin and Taj Exotica. Lucknow. Bangalore.‟ informing them about their upcoming events. Sydney. The Taj Residency. They carry out their promotions by means of Calendars. these include: Taj Lake Palace. . Udaipur. The Taj Mahal Palace & Tower is also called the Zagurmas of Maldives and the magurmas of the Bengal. The Taj Mahal Hotel. monthly letter to their „Inner Circle Customers. Taj Malabar. Jaipur. Jodhpur. Umaid Bhawan Palace. Rambagh Palace. Maldives. Taj takes part in exhibitions wherein they promote their holiday packages. Taj Exotica Resort & Spa. Goa. In India. Mauritius and Blue Sydney. New Delhi. Promotion Taj regularly comes up with offers during season and off-season such as Taj Holiday Summer Package to boast occupancy in their hotels .
The target audience that the Taj caters to are the ones who come to the Taj for its ambience and world class standards. but this is due to various overheads that it incurs and the superior quality that it offers. Process Major Service encounters that extremely delighted or disappointed are: 1.g. Bell person carrying luggage to the room. People Taj has various professional people to handle its customers and to give a high service to its customers like: • Skilled person . Food.Price Taj realizes that their prices are high and not affordable by all. Check out. Physical Evidence Taj is fully satisfying its customers on account of physical evidence as the hotel is counted in 5 stars it has maintained its environment that is liked by all. 2. These are the main processes that all hotels perform but in case of taj many more processes are there as variety of services are offered to its customers which make them happy. But at The Taj. 3. a roadside sandwich seller sells his sandwich for Rs. therefore they say that their prices are justified as they help The Taj retain the exclusivity that it stands for. 4.10 as he has no overheads and has no quality standards to maintain. they serve the best quality and also incur overhead expenses. For e. like the quality of the bread and the vegetables. Wake up call 5. Check – in.
. The strategies used by taj as explained above are successful in attracting customers as well as positioning it as a high class service delivering brand with luxury. marketing. moreover its overall interpretation can be done with the help of following table: factors strength weakness Neutral Marketing mix HR Finance Production operation system Taj is serving its customers to its best and it is able to achieve 5-star ratings from a long period. But in this era all have to apply marketing strategies to attract customers otherwise the competitors will not leave a single chance to grab market share. HR but it has to improve its system to gain an edge over its competitors. Taj is good in all fields such as finance. INTERPRETATIONS AND RECOMMENDATIONS Taj hotels is good in each area of service.• • • • Professional person Personal Agents Technological person Travel agents As taj has employed professionals for serving its customers so there are less chances in its service lags and it can deliver its best.
Provide the best product and services Continue to grow our business in the selected fields of interest.Hierarchy chart CEO Finance manager Marketing manager HR manager Operational manager Production plant manager Chef Other staff: Receptionist Security Guards Sweepers Service employees Cooking experts Objectives: Our six objectives are summarized below: Understand our customer. Balance our business goals with our financial objectives. Refine the company values and culture by hiring the best people. competitors and industry. Make the transaction from a single point of Sale Company to a distributed company. Marketing plan sales .
of . The marketing department of TAj (Luxury Restaurant) is to promote its products and make the future plan to live in the budget. Every business needs the information‟s about market before going to start. The second basic objective of Marketing Department is that it meets the budget in the required time span. There are different contents for the assessment of any market.Objective of marketing manager: According to the marketing manager of TAj (Luxury Restaurant) that marketing department has two objectives. This department provides the information about their competitors to the higher authorities of TAj (Luxury Restaurant). This department gives the suggestion to the higher authorities for the future improvement. This department shows the market share of TAj (Luxury Restaurant). which are given under here: to Market Segmentation: TAj (Luxury Restaurant) will be marketed to people on the basis demographic. These information‟s will help in achieving the goals and setting targets. The first department of TAj (Luxury Restaurant) is to create the awareness and provide the following information the higher authorities of TAj (Luxury Restaurant). This department shows the marketing position of the organization. psychographic and geographic characteristics.
taste and price. Income: Everyone can use the TAj (Luxury Restaurant) service upper and middle class. Taste conscious Quality conscious Class conscious Combination of price and quality Demographic characteristics: Demographic characteristics include age. sex. Behavioral characteristics: In behavioral aspect they segmented the market on the basis of quality. We segmented our market on following bases. middle class. Following are the different possible segments in this regard. Family life cycle: TAj (Luxury Restaurant) is suitable in every stage of life like single married couple and also those who have children can use this product. Education: It has no need more education that why the person who know something can easily enjoy with this product. income and race. Lifestyle: This product is used in every level of social class like upper. education. Age: age limitation for using this product above 15 Occupation: By profession also everyone can use this product means businessman student workers and other peoples. Gender: TAj (Luxury Restaurant) is for each gender both male and female. . occupation.
Purchasing decision: Often TAj (Luxury Restaurant) changes the purchasing decision of customers because of its good attributes. . Attitude: When the customers once buy this product after that they can use the product continuously.
Objectives of the Study To study the perspective of luxury restaurant market. To study the different aspect towards customer and consumer view. . To understand the different customer behaviour towards the Taj Mahal hotel.
RESEARCH METHODOLOGY .
"Central Bank Liquidity Management: Theory and Practice". This selection process continues until the desired sample size „n‟ is obtained. It means that a person or item once selected is not returned to the frame and therefore cannot be selected again. without replacement sampling method is used. iii. For this project work. i.Harvard Business Review. Stratified Random Sampling is one amongst the most elementary random sampling techniques. Sampling chosen with the Random method Sampling Area would be Delhi & NCR and near area only Sample Size: 100 SECONDARY DATA – I will collect the Secondary data from following sources: Newspaper / Magazine . PRIMARY DATAPRIMARY DATAI will collect the data through structure questionnaire.Professors Notes Website: RBI Book Bindseil. A stratified random sampling is a method that allows each possible sample to have an equal probability of being picked and each item or individual in the entire population have an equal chance of being included in the sample. ii. (2000).Sample and Sampling Method Sampling is the process of collecting information only from a small representative part of the population. Xlri Journal / Notes. . U.
TOOL USEDExcel sheet SAMPLING METHOD Random sampling method SAMPLE SIZE40 to 50 marketing and sales expert Target AudienceSpecially marketing and sales professional . . Limitation (if any) This is stick with the one organization report and may be due to of very busy schedule of work employee many not take very appropriate decision when time of filling the questionnaire Also for future events disclosure company are not sharing more internal information either on internet or ready to give.
CHAPTER-III ANALYSIS AND FINDINGS .
This service blue print defines exactly how the product (in this case the restaurant) is going to be. Pricing. Like physical products such as a soap or a detergent. Tourism industry or the education industry can be an excellent example. Promotions and Placement. For example – a restaurant blue print will be prepared before establishing a restaurant business. Let us discuss the same in further detail. The service product thus has to be designed with care. A place where there . the service marketing mix assumes the service as a product itself. Generally service blue printing is done to define the service product. Simply said. Place . The extended service marketing mix places 3 further P‟s which include People. At the same time service products are heterogenous. These are discussed in my article on product marketing mix – the 4 P‟s.Place in case of services determine where is the service product going to be located. However it adds 3 more P‟s which are required for optimum service delivery. service products cannot be measured. All of these factors are necessary for optimum service delivery. Process and Physical evidence. perishable and cannot be owned. Product – The product in service marketing mix is intangible in nature. The best place to open up a petrol pump is on the highway or in the city. The product marketing mix consists of the 4 P‟s which are Product.The service marketing mix is also known as an extended marketing mix and is an integral part of a service blueprint design. The service marketing mix consists of 7 P‟s as compared to the 4 P‟s of a product marketing mix.
Lets take the example of two very good companies – Mcdonalds and Fedex.is minimum traffic is a wrong location to start a petrol pump. By adding a profit mark up you get your final service pricing. your software engineers define you. In fact many companies have to undergo accreditation to show that their staff is better than the rest. you can price people only for the food you are serving. employees in your branch and their behavior towards customers defines you. People define a service. Thus the process of a service company in delivering its . If you were a restaurant owner. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area. You can also read about pricing strategies. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. IT companies. Pricing – Pricing in case of services is rather more difficult than in case of products. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. Generally service pricing involves taking into consideration labor. People – People is one of the elements of service marketing mix. and dotcoms place themselves above the rest by advertising or promotions. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Promotion – Promotions have become a critical factor in the service marketing mix. your chef and service staff defines you. material cost and overhead costs. In case of service marketing. the demand of these services is such that they have to deliver optimally without a loss in quality. If you have a restaurant. If you have an IT company. You will find a lot of banks and telecom companies promoting themselves rigorously. But then who will pay for the nice ambience you have built up for your customers? Who will pay for the band you have for music? Thus these elements have to be taken into consideration while costing. Definitely a USP in case of services. If you are into banking. Process – Service process is the way in which a service is delivered to the end customer. people can make or break an organization. Here on we start towards the extended service marketing mix. Thus banks. On top of it.
Imagine a private hospital and a government hospital. physical evidence is used as a differentiator in service marketing. A private hospital will have plush offices and well dressed staff. to create a better customer experience tangible elements are also delivered with the service. nice music along with good seating arrangement and this also serves good food. services are intangible in nature. Physical Evidence – The last element in the service marketing mix is a very important element. As said before.product is of utmost importance. the company defines exactly what should be the process of the service product reaching the end customer. Same cannot be said for a government hospital. or a restaurant which has ambient lighting. It is also a critical component in the service blueprint. . Several times. Which one will you prefer? The one with the nice ambience. That‟s physical evidence. wherein before establishing the service. However. Thus physical evidence acts as a differentiator. Take an example of a restaurant which has only chairs and tables and good food.
. Please supply the following details about yourself: Name: ___________________________________ Age: 21-27 27-34 34-45 45-55 55 & above Respondent 21-27 27-34 34-45 45-55 55 & Above 5 7 10 12 6 .
Respondent Respondent 12 10 7 5 6 21-27 27-34 34-45 45-55 55 & Above This question will showcase the customer trend towards the any restaurenemnt used by the customer towards any five star hotel in NCR region. as per the study suggested that most of customer i. age of 45 to 55 are more freqeuntly to come in hotel to stay or take the advantage of its services.e. .
Leela Palace Masala Art. Sex: Male Female Respondent Female 38% Male 62% As per the question almost 62% of the people are coming from male category. which frequently using five star restaurants like Varq. ITC Maurya Sheraton Jamavar. . etc. the Taj Mahal Bukhara. the Taj Palace Aangan. Hyatt.
.2. How often do you visit restaurant? Weekly Occasionally Monthly Yearly Respondent Weekly Monthly Yearly Occasionally 16 12 10 2 Occasionally 5% Respondent Weekly 40% Yearly 25% Monthly 30% This question represent frequency of customer visit restaurant primarily in five star hotel . As per data suggested that 40% of the population from 40 people visit any five star restaurant by weekly which is very high potential number for the Taj mahal hotel. which is very important to understand because that will give understanding to Taj mahal to open the restaurant or not.
3. customer prefer to purchase or utilize different restaurant services. 22% it depends how restaurant use its cuisine to attract customer. 25% of the customer will go to its favourite restaurant because that has been recommended by another person . How do you choose a restaurant? Previous positive experience Recommendations from another person Price Location Cuisine Other _____________ Respondent Previous positive experience Location Recommendations from another person Cuisine Price Other 6 8 10 9 4 3 Other 8% Price 10% Respondent Previous positive experience 15% Location 20% Cuisine 22% Recommendati ons from another person 25% After several consideration . .
adding to this 25% visit hotel just because of the special occasions. You usually go to restaurant at 5star for? Leisure Business Special Occasions Respondent Leisur Business Special Occasions 10 20 10 Respondent Leisur 25% Special Occasions 25% Business 50% As per the study suggested that. almost 50% of the customer visiting luxury hotel like TaJ place for the business purpose. .4. We can expect that customer which are coming to the hotel have mix of all three component which is good for an organization to mitigate the risk.
understanding if there are requirement of luxury restaurant will defiantly help Taj Mahal hotel . . adding to this 27% influence their decision because of the cuisine which is also the one of Important factor in this case. Here price is not the barrier because we are only targeting premium customer. this question will gives an understanding what factor encourage you to try a new restaurant .5. What would encourage you to try a new restaurant? Cuisine Price Recommendation Miscellaneous Respondent Location Recommendation Cuisine Price Miscellaneous 6 14 11 4 5 Location Respondent Miscellaneous Location 13% 15% Price 10% Recommendati on 35% Cuisine 27% Noida is a emerging city for business and in terms of the development project. as per the data suggested that 35% of the customer visit some other place just because of the recommended by somebody.
how many people do you dine with when eating out? 1-2 3-4 5-6 Respondent 1-2 3-4 5-6 16 15 9 Respondent 5-6 23% 1-2 40% 3-4 37% Restaurant business work very well if you have high word to mouth publicity in surrounding area. On an average.6. . also it is very imperative to understand how many people do you dine with when eating out as per the result maximum people said they dine with one or two people which reflect business traveller or casual visitors of restaurant.
Which of the following Hotels you prefer to visit for fine dining? The Taj Mahal The Taj Palace The Oberoi Shangri-La Leela Palace Hyatt Le Meridian Maurya Sheraton The Imperial Respondent The Taj Mahal The Taj Palace The Oberoi Shangri-La Leela Palace Hyatt Le Meridian Maurya Sheraton The Imperial 8 7 6 3 4 5 3 3 1 .7.
in the line of new restaurant it is good for they are coming with new restaurant under the Taj name. . however it is good to understand the customer awareness among the different premium hotel group.Respondent Respondent 8 7 6 5 4 3 3 3 1 The Taj Mahal The Taj The Oberoi Shangri-La Palace Leela Palace Hyatt Le Maurya Meridian Sheraton The Imperial Though premium hotel always have own niche customer. Most of the customer influence by name and it is indeed to come Taj as brand on top of it.
south Indian.g. coastal. south Indian. north eastern) 18% Respondent Lebanese 15% Mexican 25% Spanish 22% Greek 20% As per the data table and graph suggesting that. south Indian. . Spanish cuisine has more demand over Greek and Lebanese however Mexican seems to be number one in to this spot.g.8. Indian regional food comparatively has low demand as we have several new food destinations surrounding Delhi & NCR. north eastern) 6 8 9 10 7 Regional (e.g. coastal. north eastern) Or any other ___________________ Respondent Lebanese Greek Spanish Mexican Regional (e. coastal. Which cuisine out of these would you like a new 5star restaurant to have in the city? Lebanese Greek Spanish Mexican Regional (e.
9. 3000 to 4000 on food and different Beverages also adding to this almost 32% of the peoples spend Rs. on an average people spend about Rs. . On an average per person how much would you spend on Food & Soft Beverages? 1500-2000 2000-3000 3000-4000 Respondent 1500-2000 2000-3000 3000-4000 12 13 15 Respondent 1500-2000 2000-3000 3000-4000 38% 30% 32% As per the study suggested that. 1500 to 2000 on various food and Beverages.
On an average per person how much would you spend on Liquor? 1500-2000 2000-3000 3000-4000 5000 & above Respondent 1500-2000 2000-3000 3000-4000 5000 & above 8 6 12 14 Respondent 1500-2000 20% 2000-3000 15% 3000-4000 30% 5000 & above 35% Liquor spend Is one of the important aspect to understand in current time for any premium restaurant. 5000 and above which is very strong factor for success of restaurant. as per the study suggested that 35% of the population spend more on Liquor than food and beverage which is Rs.10. .
free gifts. . Providing training to waiters regarding communication skills and how to deal with the customers. Cool environment should be provided like A. 6. Better quality with cheap price should be there. 2.C. Professional scheme like quizzes.FINDINGS AND INFERENCES 1. Delivery should be speed up so that customers face no problem. facility. sound music. 4. coupons should be given. Cleanliness should be provided like use hygienic tables cloths. 5. 3.
Limitation (if any) This is stick with the one organization report and may be due to of very busy schedule of work employee many not take very appropriate decision when time of filling the questionnaire Also for future events disclosure company are not sharing more internal information either on internet or ready to give. .
free gifts etc. Free home delivery should be provided so that they can their time. . Parking facility should be there so that customer faces no problem. coupons. Female staff should be there. free gifts are there for customers. Price should be reasonable 7. 4. 2. Customers who make very frequent visit should be given extra advantage like discount. taj is well positioned and hotel has adequate customer base. 8. Taj can improve in the area of system as system of an organization can also be its core competency and it can also serve better if the internal system is good. Being a five star hotel. In whole its service is good. Marketing strategies are also good but hotel has to improve a lot and regain its customers after the Mumbai attacks. 3. 9. 5. Dancing facility like on special occasion should be there.RECOMMENDATION 1. Separate cabin should be there so in order to maintain their privacy. Several promotional schemes like quizzes. Restaurant should offer different other type of varieties related to food. 6.
Ambassador. The large number of guests seated in the lobby waiting for a table is proof of its popularity. The crowd is exceptional. Vivanta by Taj . New Delhi entices guests into the superb food zone. And it is said that it gravitates to InSomnia for a fast and fashionable late night chill out. The quaint décor at Larry's China is well-matched to a charming selection of Chinese dishes. Chinese. Perhaps you may choose to simply unwind in the sunken pool bar or get away from it all for an exclusive Prive Soirée five course alfresco dinner on the fourth floor.CONCLUSION Larry's China and Yellow Brick Road are the two restaurants of this New Delhi Hotel for Indian. Larry's China that serves Cantonese and Sichuan cuisine at the Vivanta by Taj Ambassador hotel. and Indian. Yellow Brick Road rocks round the clock and offers an interesting mix of cuisines including Thai. . Continental. Jet set foodies sample different exotic menus night after night. The atmosphere is lively. Continental.
hotelsinindia.marketing teacher.tajhotels.com/2006/11/24/the-story-of-one-of-the-brand-taj/ www.com www.com www.searchindia.com www.com .investopedia.BIBLIOGRAPHY http://nitawriter.wordpress.com www.
How often do you visit restaurant? Weekly Occasionally 3. How do you choose a restaurant? Previous positive experience Recommendations from another person Price Location Cuisine Other _________________ Monthly Yearly 4.APPENDIX Questionnaire for gauging new F&B trends in the city Delhi. You usually go to restaurant at 5star for? . 1. Please supply the following details about yourself: Name: ___________________________________ Age: 21-27 27-34 34-45 45-55 55 & above Sex: Male Female Occupation: ________________________________ Number of members in family: __________________ Annual Income: _______________________________ 2.
Leisure Business Special Occasions 5. On an average. What would encourage you to try a new restaurant? Cuisine Price Recommendation Miscellaneous Location 6. how many people do you dine with when eating out? 1-2 3-4 5-6 7. Which cuisine out of these would you like a new 5star restaurant to have in the city? Lebanese . Which of the following Hotels you prefer to visit for fine dining? The Taj Mahal The Taj Palace The Oberoi Shangri-La Leela Palace Hyatt Le Meridian Maurya Sheraton The Imperial 8.
Amongst the Indian Cuisine which Restaurant do you prefer? Varq. the Oberoi . the Taj Palace Bukhara. Le Meridien Taipan. coastal. the Taj Mahal Masala Art. Le Meridien The Spice Route. Imperial Hotel 12. Leela Palace Aangan. south Indian.Greek Spanish Mexican Regional (e. Hyatt Monsoon. ITC Maurya Sheraton Jamavar. On an average per person how much would you spend on Food & Soft Beverages? 1500-2000 2000-3000 3000-4000 10.g. On an average per person how much would you spend on Liquor? 1500-2000 2000-3000 3000-4000 5000 & above 11. the Taj Mahal Golden Phoenix. Amongst the Chinese Cuisine which Restaurant do you prefer? House of Ming. north eastern) Or any other ______________________ 9.
China Kitchen. the Oberoi La Piazza. . Imperial Three Sixty. the Taj Palace Spectra. Maurya Sheraton Thank you for completing this questionnaire. the Taj Mahal 19 Oriental. the Leela Travertino. Hyatt 13. Hyatt San Gimignano. Le Meridien Maroush. the Leela T. Hyatt Le Belvedere. The response will be treated in confidence. Shangri-La Blue Ginger.K’s Oriental Grill. The results will be used only as academic purpose as a part of our study. Oberoi Hotel Zanotta. Amongst the Continental\ other Authentic Cuisine which Restaurant do you prefer? Wasabi.