2) TAJ HOTELS, RESORTS, & PALACES

TAJ HOTELS is a chain of the luxury hotels.These are the subsidiaries of the INDIAN HOTELS
COMPANY LIMITED. Taj hotels are headquartered at Express towers, Nariman point,
Mumbai.It is incorporated by the founder of the TATA GROUP , jamsetji tata in 1903.

Taj hotel is a part of the TATA group , which is one of the india’s largest business
conglomerates.They have employed over 20000 people in the year 2010.

In 2020, the company operates a total of 100 plus hotels and hotel- resorts , with 84 across india
and 16 in other countries, which includes Bhutan, Malaysia, Maldives, Nepal, south Africa, sri
lanka, UAE, UK,USA and Zambia.

Ten hotels of taj group are the members of the Leading hotels of the world.

The two main hotels of Taj group namely, Rambagh palace in Jaipur and the Taj mahal palace
and tower in Mumbai,these were ranked as the Top 100 hotels and resorts in the world. Taj
mahal palace is also ranked as the no.13 on its list of “ The Gold standard hotels” in 2014 .

Type Subsidiary
Industry Hospitality
Founded in 1903
Founded by Jamsetji tata
Headquarters Mumbai
No. of locations 100 plus hotels
Services Hotels and resorts
Website www.tajhotels.com
 HISTOR
Y:
Jamsetji nusserwanji tata, the founder of the TATA group , has opened the Taj mahal palace , a
hotel in the Mumbai on 16th of December 1903. It was the first taj property and the first taj hotel.

According to the history, Jamsetji tata decided to open the hotel after an incident involving racial
discrimination at the watson’s hotel in the Mumbai, where he was refused entry as the hotel
permitted only for the Europeans.

According to the another story, he opened the hotel when one of his friends expressed disgust
over the hotels that were then presented in the mumbai.

But the main reason of opening Taj hotels was that , the idea was long been in his mind and that
he had made a study on the subject.He did not have any desire to own a hotel but he wanted to
attract people to india and to improve Mumbai.

He had travelled to many places like London, paris, berlin, dusseldorf to arrange for materials
and pieces of art, furniture and other interior décor for his hotel.The taj group has then flourished
under tata group.They are converting the royal places in india into luxury hotels since 1970s.The
first palace which was converted into a taj luxury hotel was the lake palace in Udaipur, in
1971.Other examples are Rambagh palace in Jaipur, umaid bhawan palace in jodhpur ,
falaknuma palace in Hyderabad and nadesar palace in Varanasi.

Taj group has expanded their business hotels a lot in various metropolitan and larger secondary
cities in india. Taj group has continued their expanding their business n geographic and market
coverage in india. Taj has also set up their Taj kerala hotels and resorts limited in the early 1990s
along with the Kerala tourism development corporation.
VISION AND MISSION STATEMENT:

MISSION STATEMENT:
“ To improve the quality of life of the communities we serve globally through long term
stakeholder value creation based on leadership with trust.

VISION STATEMENT:
25% of the world’s population will experience the TATA commitment for improving the quality
of life of the customers and the communities.
VALUE PROPOSITION:
The value proposition of Taj group of hotels is shifted from a pure product play , to providing a
tailored level service and unique experiences.

TARGETED CUSTOMERS
Customers in the upper middle to high classes are their target market. Because the brand is
associated with luxury, excellence, quality, and leisure, it employs a premium pricing strategy.As
the lower class peoples and middle class peoples won’t be able to afford such luxury treatments
so , their main target are upper class peoples.

POSITIONING STRATEGY
The hotel positioning technique follows market segmentation. The hotel positioning refers to the
hotel's image in the minds of customers in terms of location, accommodation quality, food and
beverage offerings, and service standards. The Taj hoteliers determine the image of the hotel that
should be reflected in the minds of guests in order to obtain the intended marketing benefits.
Advertisements, websites, and other forms of corporate communication all contribute to this
image. This is to ensure that the hotel image in the minds of guests is streamlined and not left to

chance, as marketing managers wish. Taj hoteliers have positioned their hotels in the minds of
customers by providing high premium services to their customers which rarely is provided by
any other hotel. They have positioned their hotel so well in the minds of customers that they
cannot be replaced by anyone. Taj hoteliers are known for their high premium services.
PORTER FIVE FORCES MODEL
The Porter Five Forces model is significantly influenced by classical microeconomics. In the
casename case study, the five forces that define the industrial structure of the business are:

1. Rivalry among current players — When competition is fierce, existing players like Palaces Taj
find it difficult to make long-term profits.

2. Buyers' negotiating strength — Buyers with significant bargaining power tend to force prices
down, reducing the Palaces Taj's ability to produce sustainable profits

3. Threat of substitute products and services - If the threat of substitute products and services is
strong, Palaces Taj must either continue to spend in R&D or risk losing market share to
disruptors.

4. Suppliers' bargaining strength - If suppliers have significant bargaining power, they will be
able to demand a greater price from Palaces Taj.

SUPPLY CHAIN NETWORK

MERGERS AND ACQUISITIONS OF TAJ HOTELS

Six subsidiaries of the Indian Hotel Company Ltd (IHCL), which owns the Taj hotel brand, are
set to merge. The subsidiaries that would be amalgamated with IHCL include

1) Indian Resorts Hotels Ltd

2) Taj Lands End,

3) Asia Pacific Hotels Ltd,

4) Kuteeram Resorts Ltd,

5) Gateway Hotels and Gateway Resorts Ltd.

TAKEOVERS:
MARRIOTT HOTEL has takeover the TAJ HOTELS to become the India’s largest hotel
company which includes 79 operating hotels and 18000 rooms.

VALUE CHAIN NETWORK

OUTSOURCE
Indian Hotels, which owns the Taj hotels, resorts, and palaces, had previously outsourced
operational areas such as public cleaning, security, and laundry, but has recently begun
outsourcing tickets and reservations. In an effort to save money, hospitality giants such as Taj
Hotels, Mariott, and Hyatt, among others, have increased outsourcing services in recent months,
despite an acute staffing shortage and rising payroll prices. The company's cost efficiency
improves as a result of this.

COMPETITIVE ADVANTAGE:
Taj hotels distinctive service attitude has been perfected over 100 years and is inspired by
traditional Indian hospitality. Their service is focused on being individualised and giving their
customers a real feeling of place. The experience standards are updated on a regular basis to
ensure that we deliver on the brands' promises and remain current. The Taj InnerCircle Program
aims to give unrivalled service, experience, and acknowledgment to their devoted customers. It is
one of India's leading hotel loyalty programmes, offering guests more earning potential and
redemption alternatives with no ban periods. It also gives you access to exclusive rewards,
discounts, and unique experiences which is rarely provided by any other hotel.So , this makes taj
hotel to be more competitive than other hotels.

CORE COMPETENCIES
Taj hotels are noted for their elegance in service marketing. The food and service are secondary
considerations. The Taj chain of hotels is known for the elegance that each of its hotels offers.
The hotel's core competency is its luxury. The Taj hotel in Mumbai, for example, is located near
the India Gate and boasts wonderful decor. The Taj hotel in Goa has direct access to a private
beach. Customers of the Taj are treated to exceptional levels of luxury. When planning a
new Taj hotel, the manager must consider the site and interiors, as well as guarantee that his core
expertise is effectively planned.

MARKETING STRATEGY OF TAJ HOTELS

PRODUCT STRATEGY
Taj Hotels is one of India's most well-known hotel chains. As part of its marketing mix product
strategy, the Taj Hotels brand includes more than 90 hotels and resorts in India and around the
world. It has more than 80 in India and more than ten in nations such as Singapore, Malaysia, the
United States, the United Kingdom, and the Maldives. While the brand was first focused on the
hotel industry, it gradually expanded into other areas. In 1974, Taj Hotels opened its first resort
in Goa's Fort Aguada. They tried a completely different approach about the same time. They
began transforming Indian palaces into hotels in order to give them a regal feel. Lake Palace in
Udaipur and Rambagh Palace were among the palaces included in the Taj Hotels. The hotels are
divided into three groups: luxury, business, and leisure. In addition, the Taj Hotels operate in
India under three different names: Taj, Vivanta, and Gateway. The environment on the premises,
the services they provide, the facilities in the rooms, and the common area all reflect the hotel's
luxury status.

PRICING STRATEGY
They are the most prestigious hotels in the world, dedicated to providing visitors with an
unrivalled and one-of-a-kind experience. They are more expensive than comparable hotels in the
same category. Taj Hotels are the market leaders in the industry and have a global reputation.
Customers in the upper middle to high classes are their target market. Because the brand is
associated with luxury, excellence, quality, and leisure, it employs a premium pricing strategy.
Taj's three sub-brands, Taj, Vivanta, and Gateway, offer varying levels of service and luxury,
with Taj being the most luxurious and Gateway being the least. The Taj is the main brand,
offering the highest level of luxury service, followed by Vivanta, a contemporary luxury brand,
and Gateway, a mid-market brand. Its goal is to provide service to society's elite echelon. The
experience is what the brand charges you for, not the service.
DISTRIBUTION STRATEGY
Taj Hotels may be found in Punjab, Maharashtra, Karnataka, Kerala, Tamil Nadu, Goa, Haryana,
Andhra Pradesh, Uttar Pradesh, Rajasthan, West Bengal, Delhi, Madhya Pradesh, and Jammu &
Kashmir, among other states in India. Outside of the country, it can be found in South Africa,
Zambia, Bhutan, Malaysia, Maldives, Nepal, Sri Lanka, Dubai (UAE), the United Kingdom, and
the United States. Taj Hotels began by developing hotels in major towns, but as their business
grew and demographics and the tourism and hospitality sector changed, they expanded their
services to include secondary locations around India.

PROMOTIONAL STRATEGY
Because Taj Hotels is a high-end brand, it relies significantly on word-of-mouth. The importance
of word-of-mouth advertising is paramount, and clients tend to be loyal to the service. The brand
is promoted in high-profile settings such as hotels, resorts, and palaces. It always picks the best
of the bunch and gives their customers the best. Although there aren't as many price cuts as some
of the others in the industry, there is a pricing difference between peak and off-peak seasons. The
Taj Hotels Group has a membership programme that rewards loyal customers with special deals.
They are also active in television commercials, direct marketing, and social media commercials.
Individuals can also receive training from it.

MARKETING STRATEGY:

MARKETING SEGMENTATION
Market segmentation is a technique used by Palaces Taj marketing managers to divide a broad
market into smaller segments based on specific demands, traits, or consumer behaviour.
Geographic, demographic, usage, user status, income, lifestyle, value proposition priorities,
perks sought, loyalty status, gender, social class, self-perception, psychographic variables, and
other attitudes are all criteria that Palaces Taj might use to categorise customers.

Claritas' PRIZM is one of the most extensively used multivariate segmentation systems. Various
marketing and advertising organisations use it extensively. Based on the US Household
Purchasing Preferences data, it consists of 68 customer categories.
MARKET TARGETING
After the whole market has been segmented, Palaces Taj must select a target segment or a few
target categories. Because goods can only give unique value propositions, the goal is not to try to
be everything to everyone.The targeting strategy of taj hotels is to mainly cover upper class
peoples who can afford luxury premium services. As taj hotels are known for their premium
services so they don’t target the lower class peoples and upper class peoples.

MARKET POSITIONING
The differentiation process refers to how Palaces Taj differentiates its products and services from
those of its competitors in the market. The positioning of a brand or Palaces Taj items in the
minds of potential buyers is determined by distinguishing traits, qualities, and functions. The
hotel positioning refers to the hotel's image in the minds of customers in terms of location,
accommodation quality, food and beverage offerings, and service standards. . Taj hoteliers have
positioned their hotels in the minds of customers by providing high premium services to their
customers which rarely is provided by any other hotel. They have positioned their hotel so well
in the minds of customers that they cannot be replaced by anyone. Taj hoteliers are known for
their high premium services