NAZ HOTEL

PROJECT:
CHENNAI
- Submitted to
Professor M R Suresh
Abinaya M 20064
Karthikeyan N 20065
Anvith Prakash 20071
INTRODUCTION
■ Bye-bye Group & NAZ hotels.

■ Change in government policy in 1992.

■ Exploring the possibilities of expansion by selecting plot among two alternatives.

■ Hiring people from BCS for external consultancy.

■ Collection of data and difficulties in collection of adequate data.

■ Different set of customers to be targeted.

■ Exploration of possibilities in restaurant business.

ISSUES
Selection of sites among given two alternatives.

Kind of restaurant to be located in proposed hotel.

Selection of target customer.

Data inadequacy.

Competition in terms of pricing.

XAVIER FRAMEWORK

Environmental Analysis

Market Analysis

Competitor Analysis

Customer Analysis
TARGET MARKET
Target customers Advantage Disadvantage
Airline crews • Growth of international flight landing. -
• Airlines were planning to set-up base
in Chennai or Bangalore.
International conference • Very less competitor in this sector. • Allied facilities such as exhibition hall,
related tourism Only in Delhi & Colombo. auditorium, super deluxe transportation
etc. is required.
Business visitors • Increasing growth in industrial sector. • Strategic technique is required to attract
• Regular industrial fairs held in the city. business visitors who are likely to stay in
• Liberalization in 1991. Bangalore.

Cruises that anchor in • High Growth -

Chennai port.
Backpackers • High Growth • They would prefer hotel at low cost.
• Main purpose is exploration.
Tourist visiting golden - • Staying duration may not be more than 1-
route in south. 2 days.
• Passing through multiple cities so, may
not be willing to spend more.
 CUSTOMER ANALYSIS

CUSTOMER
ANALYSIS  Biggest and profitable customers

 Other Potential customers

Proactive environmental scanning  Values that customers would look for – quality
EXTERN
AL Technology Focus – to create
advantage over their competitors service and good food along with all amenities
ANALYSI
S  Objectives of these customers – depends upon

COMPETITOR their purpose of visit

ANALYSIS  High tariff rates – dissatisfaction among the

customers

 Unmet need – conference auditoriums

COMPETITOR ANALYSIS:

 Major competitors and more intense competitors

- Local hotels and hotel chains

- Hotel Invite

- Hotel Regent (3 star hotel)

 Potential entrants

 Grouping of competitors
AAAA Political Frame Work
■ Government Liberalization – Industrialization and Tourism.
■ Three Interrelated areas: - Hospitality & Accommodation, travelling, guidance and
information.
■ Rule is important to the company
■ The company is not strong
■ Strategic Alliance – Ally
■ Explore 4 star hotel
■ Take old hotel that was used to shoot movies rather than other vacant plot which was
only 2 km from sea view.
Customer Focus

■ Focus on Foreign customers

■ Domestic customers – occasionally

■ Foreign customers – See only the services

■ Foreign customers – Sri Lankans, Nepalians,

Naz Entry Option amongst two possible sites

Hotel Seaview Vacant plot at K N Nagar

Old hotel of 1940 vintage 2 Km from Sea View

Small entry
Near the beach
Flanked by Coastal Environmental Research and Advocacy
Group
New establishment with more planning and investment
Near the beach

Both locations are equidistant from airport Both locations are equidistant from airport

Strong enough to have both a 5-star and a 4-star hotel in the

Bye – Bye Group Financial position
two sites
Naz Entry Option amongst two possible sites

Hotel Seaview: 4 star Hotel, preserving the Empty Plot: 5 star Hotel with suitable facilities for
vintage looks and focus on tourism International Conferences

Conference related •
•
Rising segment
Less amount of competitors
Tourism •
•
Only 3 locations had suitable facility for international conferences
Needs more research from BCS

• Rising segment
Airline crews • Several airlines were planning to base their crews in Chennai
• Need more research on growth in flight landing

Tourists and Business • Improved tourism after liberalization

• Most foreign tourists looked for hygienic and economic accommodation
visitors • Regular business visitors from western countries who came for a week's visit

Industrial fairs • Regular industrial fair was held in the city

• Growth in industrial sector

Demand drivers
The way forward for BCS
■ More understanding on Bye-Bye group’s purchase of a 4 star hotel
■ Exploratory research with companies supplying lifts, air conditioners, architects and
builders
■ Identify more dependent variable that could affect the regression model
■ Research on the tariffs offered by competitors and define the pricing strategy

Resturaunt Scenario:
■ Naz cant solely rely on Punjabi restaurants as their target customers are diverse
■ BCS needs to study the external environment on establishing a resturaunt in the proposed
location
■ Naz’s own pub that was closed can be shifted to one of the proposed location
■ Target customers can include Business officials and foreign delegates