ITC Kolkata’s Drug Fiasco

ITC’s hotels business is inspired by its vision to promote India’s rich tourism
heritage. One of India’s largest hotel chains, with a collection of more than 100
hotels in over 70 destinations, ITC's hotels have redefined the fine art of
hospitality. ITC’s luxury hotels offer unique indigenous experiences,
internationally acclaimed cuisine and spas, with globally benchmarked
standards in accommodation, environment and guest safety.

Earlier this year, ITC Royal Bengal Kolkata came under huge media limelight.
Shareholders and management were shocked to find themselves in the middle
of a major police operation when cops searched their rooms for drugs. 50
officers stormed into the hotel premises around 10 in the night looking for
drugs. Police seized 7 kgs of Cocaine lying unattended in the hotel premises.
After checking the CCTV footage Kolkata Police stated to ABP News that the
drugs were not brought by the guests and was found in the hotel itself in 3
different rooms and registered a case under section 21 of Narcotics Drugs and
Psychotropic Substances Act. This statement was aired in every media platform
and their customers turned against ITC. The recent spate of events impacted
their business and they ran into huge losses. Concerns were raised over the
safety of the guests and people stopped coming.
The other hotel chains in the city took this as an opportunity and launched
marketing campaigns tarnishing ITC’s reputation in the market. However,
ITC Royal Bengal Kolkata being one of the prominent hotels under the chain
has to clear the air of confusion and reinstate consumer trust in the market.
You are the Marketing Head of the organisation and need to come up with a
strategic move on ITC’s part to portray itself as a good corporate citizen’.
ISSUES:
 Promotional strategy of ITC
 Analyze ITC’s competitors in the Hotel Segment.
 Suggest feasible marketing campaigns to set things right again.