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Essay, 19 pages (5000 words)

Resorts and palaces of taj hotels

Marketing is a prime asset of any companies in today’s market. Marketing department is the backbone of any companies any d if the company doesn’t have this can be called handicapped. It context to a hotel it also a has vital role, as the hospitality is a fast growing industry and has tough competition everywhere; so it is very important to be ahead of the competition. In this context marketing plays a fatherly role. Marketing department is the area which comes in contact with the customers and tells about the product and the services provided by the hotel and compare it with its competition. During this project the author has given the introduction and importance of marketing about marketing in comparison to a hotel.

A brief about taj hotels palace and resorts has given in relation to its history and segment of customers served. The main objective of this particular project to learn, analyze and propose solutions wherever required to the various marketing strategies undergone by the “ Taj Palace, New Delhi” hotel and also giving the reason for the proposed solutions to it.

This project would also allow the author to know and learn about the city and would also allow the author to understand about the hospitality trends in the city. It would also help the author to understand the competitors of “ Taj Palace, New Delhi” and providing significant reasons and facts for supporting the reasons of the provided solutions and suggestions.

This will also help to learn about the city and will learn what the trends of hospitality in the city are. It will help to learn what strategies are the competitors of “ Taj Palace, New Delhi” to compress it competition.

Marketing: An Introduction

“ For a business not to advertise is like winking at a girl in the dark. You know what you are doing but no one else does” – Stuart H. Britt, US advertising consultant

Marketing is a social and managerial process to obtain they need and want through creating and exchanging products of what they need. Kotler defines marketing as “ The key to achieving organisational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.” marketing today helps in understanding the psychology of customers so that products can be innovated accordingly. . In the Hospitality Industry, leaders like the Taj Hotels Resorts & Palaces, Marriott International, Hilton, Hyatt, etc are increasing their market share at the expense of smaller chains and independent operators because they possess a thorough understanding of marketing which is essential to ensure steady flow of customers.

Marketing involves the following questions:

How to find the right customers?

Different products?

How does one reduce cost of customer acquisition?

The scope of marketing is quite broad. The implication is that the firm uses to acquire customers and manage the relation with them. The Kotler definition encompasses both development of new products and services and their delivery to customers. Marketing expert Regis McKenna expressed a similar viewpoint in his influential 1991 Harvard Business Review article “ Marketing is everything.” McKenna argued that because marketing management encompasses all factors that influence a company’s ability to deliver value to customers; it must be “ all-pervasive, part of everyone’s job description, from the receptionists to the Board of Directors.”

The Importance of Marketing in Context to the Hospitality Sector

Marketing is one of the most important tool in the in the hospitality sector as well as other sectors which plays a major role. In other industries selling of products are sold is marketing but in the hospitality sector it is sold with a slight variance. In a hotel it is not the product it is the service that is provided to the guest. Both service marketing and goods marketing start with a crucial need – identification and product design functions; goods generally are produced before sold and services generally are sold before produced. Service industry has less influence on comparison with the other industries. The influence is slow comparison to the industries. The customers who have not witnessed the product may have a different opinion. Good’s marketers may be able to move prospective customers from brand awareness to brand preference with packaging, promotion, pricing and distribution whereas service’s marketers usually cannot.

The services provided in a hotel are intangible. This type of service makes it more difficult to describe the services provided to the customers so the customers can only feel the services. Customer’s perception of risk tends to be high for services because services cannot be touched, smelled, tasted or tried on before purchase. Customers can try a new product like a test drive of a car but to experience the services of a hotel he has register as a guest in the hotel. Service marketers can create brand awareness and induce trial before the sale, but they demonstrate benefits and build brand preference most effectively after the sale. Superior service can only be felt it can’t be packed and given to customers.

Introduction to Taj Hotels Resorts and Palaces

Indian Hotels Company Limited (IHCL) is a subsidiary of Taj Hotels Resorts & Palaces which is a part of the TATA Group which is Asia’s largest group and one of the finest and the oldest companies of India. The first hotel built by Taj was Taj Mahal Palace built in 1903 and it was built because Indians were not allowed to stay in prestigious hotels and not allowed in clubs during the British rule. This lead in the foundation of the Tata Group by Mr. Jamsetji Nusserwanji Tata. The hotel alone stands for more than a century.

The main development of the group started in the 70’s under the leadership of the then Chairman and Managing Director, Mr. Ajit Kerkar. In the starting came the Rambagh Palace in Jaipur. They started with the concept of converting century old palaces into hotels, which is now USP of the Company. During the years many more hotels like Taj Coromandel and the Fisherman’s Cove, Fort Aguada Beach Resort were built. In the 80’s the company came up with two more hotels in the capital city and Bangalore. These hotels are ethnic in nature and they are setup according to international standards.

The Taj is symbol of hospitality in India and completed 100 years in 2003. Till date the company has 78 hotels including resorts and palaces. Out of which 18 are abroad which are in Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. In India it has 60 hotels across 45 locations like Delhi, Mumbai, Calcutta, Chennai, Goa etc. as the brand holds such diverse network it symbolises Indian hospitality in India and Abroad. The Managing Director, R. K. Krishnakumar says “ The vision for the Taj Group is for it to be a select chain, present globally. Asian, perhaps in character, but absolutely international in terms of systems and processes and with a strong West European focus. The way forward was to make sure that the entire Taj team is imbued with the missionary zeal to sell the brand.” The Taj caters all types of hotels like luxury, business and premium. Amongst the clientele, international travellers form the bulk of the market for the Taj particularly in the metros. Even the profiles of the Indian customers are changing with time.

Categories of Taj Hotels

Taj Hotels Palaces and Resorts is an international hospitality group with strong roots in India. For the past 100 years they had build their own reputation on legendary properties, unparalleled facilities and impeccable service. They operate in the luxury, premium, mid market and value segments of the market through their following brands:

Taj (luxury full-services resorts and palaces) is their flagship brand for the world’s most discerning travellers seeking authentic experiences given that luxury is a way of life to which there are accustomed. Spanning world renewed landmarks, modern business hotels idyllic beach resorts, authentic Rajput palaces and rustic safari lodges , each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way to create experiences and lifelong memories.

Taj also encompasses a unique set of iconic properties rooted history and tradition that deliver truly unforgettable experience. A collection of outstanding properties with strong heritage as hotels or palaces which offer something more than great physical product and except cal service. This group is defined by the emotional and unique equity of its iconic properties that are authentic, non-replicable with great potential to crate memories and stories.

Taj Exotica is their resort and spa brand found in the most exotic and relaxing locales of the world. The properties are defined by the privacy and intimacy they provide. The hotels are clearly differentiated by their product philosophy and service design. They are centred on high and accommodation, intimacy and an environment that allow its guest unrivalled comfort and privacy. They are defined by a sensibility of intimate design and by their varied and electric culinary experiences, impeccable service and authentic Indian spa sanctuaries.

Taj Safaris are wildlife lodges that allow travellers to experiences the unparallel beauty of the Indian jungle amidst luxurious surrounding. They offer India’s first and only wildlife luxury lodge circuit . Taj safaris provide sustainable ecotourism model.

Premium Hotels (premium full-service hotels and resorts) provide a new generation of travellers a contemporary and creative hospitality experience that matches their work-hard play-hard lifestyles. Stylish interiors, innovative cuisine, hip bars and a focus on technology set these properties apart.

The Gateway Hotel (upscale/mid-market service hotels and resorts) is a pan India network of hotel s and resorts that offers business and leisure travels a hotel designed, keeping the modern nomad in mind. At the Gateway hotel people believe in keeping things simple. This is why Taj hotels are divided into 7 simple zones stay, hangout, meet, work, unwind and explore.

Ginger (Economy Hotels) is their revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and affordable are hallmarks of this brand targeted at travellers who value simplicity and self service.

Client profile

Taj hotels have a client profile consultation service provided wherein they diagnose the clientele needs and with that information they try and provide the required facilities to their customers. Generally Taj concentrates on the upper class of the society who can spend lavishly on the luxury provided.

Vision

The Taj group hotels commit itself to the overall improvement of the ecological environment, which all the people are a part of.

We recognize that we are not owners but caretakers of the planet and owe it to our children and future generations of humankind.

It is our endeavour not only to conserve and protect but also to renew and regenerate the environment in which we live and operate.

Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities.

We will partner and engage with our environment through EARTH:

ENVIRONMENT AWARENESS AND RENEWAL AT TAJ HOTELS. For us earth is not a program, nor a process, it is a way of life.

Mission

Embrace talent and harness expertise to leverage standards of excellence in the art of hospitality to grow our International presence. Increase domestic dominance and create value for all stakeholders.

Earth

In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate environment management in all business areas Taj hotels and resorts and palaces presents EARTH (ENVIRONMENT AWARENESS AND RENEWAL AT TAJ HOTELS) a project which presents and indicates the conscious effort of one of Asia’s largest and finest group of hotels to commit to energy conservation and environment management. EARTH has received certification from green globe the only worldwide environmental certification program for travel and tourism.

Taj values

  • PEOPLE DIVERSITY, INTEGRITY AND RESPECT
  • PASSION FOE EXCELLENCE
  • EXCEED EXPECTATIONS
  • INNOVATIONS
  • SENSE OF URGENCY AND ACCOUNTABILITY
  • JOY AT WORK

Taj promises

At the Taj group their commitment is to service excellence is rooted in our two guiding principles. One of Taj key priorities is to empower the people to deliver on their legacy of impeccable service3.

Four steps of service are:-

A warm and sincere welcome. Use the guest name, whenever possible.

Fulfil guests need and provide anticipatory service.

Defect free products and services.

Fond farewell using the guest name, whenever possible.

The following philosophy is a summary of our beliefs and values towards our employees.

Introduction to Taj Palace, New Delhi

Taj palace one of the most popular 5 star hotels to stay in Delhi it provides one of the best and marvellous international facilities and world class services to the guests. It has 461 rooms which attracts a majority of big shots of the state and government officials. Top business tycoons love to stay in the hotel during their business trips. The hotel is located is Sardar Patel Marg, Diplomatic Enclave near to Dhaula Kuan area. The national and international airport is just a 10 mins drive from the hotel.

The hotel has 12 banquet halls with world class facilities for all kind of functions like meetings, seminars, weddings and casual parties. The capacity of the hall is around 700-1000 guests. The hotel provides all kind of recreational activities for its guests. The hotel look is all n different in the area. It is a perfect embodiment of all the qualities associated with Taj hotels, Resorts and Palaces.

The luxurious and fabulous rooms are mainly divided into 7 categories superior rooms, deluxe rooms, Taj Club rooms, Executive suite, Grand Luxury Suite and Grand Presidential suite. The Grand Presidential suite is one of the rooms in the city in comparison to its competition hotels. The rooms have different views available as per the guest continence like garden view, pool view and city view.

The hotel serves fantastic food in its 4 different restaurant specially the award winning Oriental express which provides excellent luxury and services to its guests and itself is one of the best restaurants in the city to dine in.

Competitors of Taj Palace, New Delhi

Though Taj Palace is well reputed hotel it faces tough competition. As the hotel is situated in Delhi which is the Metro city and the capital, there are many other five star properties of Taj and other brands, these hotels provide tough competition because they provide the same services in comparison with the hotel as they have market share with them. The Hotels providing immense competition are:

ITC Maurya Sheraton, New Delhi: it is a 440 room property and it the main competition to the hotel as it is the nearest situated hotel. It is a Welcomgroup property and it provides world class facilitates to its guest. It is one of the most popular hotel for dinning in the city because of its world famous restaurant BUKHARA which specialise in North West frontier cuisine. The hotel truly creates magic on the hearts and the minds of the travellers with its luxury accommodation and its state-of-the-art facilities and warm hospitality.

Hotel Hyatt Regency, New Delhi: located in the area of Bikaji Cama Place in South Delhi, this 520 room property provides state-of-the-art services to its customers and is one of the well reputed hotels in the area. This particular hotel provides a very tough competition to its competitors. The hotel provides all types of rooms from the poolside facing to executive rooms to The Presidential Suite. The interior of the hotel is bed-lighted with selective traditional art work, elegant furnishing, artful antiquities blended with some fabulous service provided by the well trained staff.

Le Meridien, New Delhi: Situated in the Raisina Road, with its proximity to the shopping, commercial and cultural center act as a potent factor for this particular hotel. This Hotel a part of a very well reputed brand Le Meridien group of Hotels, is one of the most popular hotels present in the city. This 355 room property provide all types of rooms to its travellers from Deluxe to the presidential suites with all types of facilities ranging from in-room safe to high speed internet access in its rooms. Its Food and Beverage outlets providing different cuisines such as the Golden Pheonix (Chinese cuisine), Pakwan (North Western Frontier Cuisine), the Pierre (French Cuisine), Henri’s bar and Aloha bar gives this hotel and extra edge and gives a tough competition to the taj palace.

The Oberoi Hotel, New Delhi.-The hotel reflects a nice blend of tradition and contemporary sophistication. The hotel is situated near to the city center, business, commercial and shopping districts. The hotel has a prestigious golf course on one side and on the other side it has a Humayun’s tomb. Placed in the Dr. Zakir Hussein Marg, New Delhi, it is roughly 20 mins. Away from the airport. It has been awarded as the “ Best Hotel in Delhi” and “ Among the Top 100 Hotels in the world” by the Institutional Investor, 2009 the world’s best Hotels. This hotel has also being awarded with a number of other awards also such as “ The best hotel in Delhi” by TTG Travel Awards, 2009 and “ Amongst best hotels and Resorts in the World” by Forbes Traveller 400- the world’s best hotels and resorts 2009. This 350 room property provides all kinds of world class services to its travellers and hence is the biggest threats to the taj.

Shangri-la-Eros Hotel, New Delhi: It is most centrally located hotel in the city. The hotel is situated in Connaught place which is like the lifeline of Delhi as the Business, Commercial and Shopping District definitely makes it one of the preferred hotels for the guest to stay into. It is 17 floor hotel which has 350 luxurious rooms which target both business and leisure travellers and is definitely popular 5 star property in the city. It is a very famous food and beverage out known as “ café uno” along with other outlets is famous among the guest who comes to the city.

Taj Mahal Hotel, New Delhi: It is one of the distinguished properties in the capital city. It is the sister hotel of Taj Palace. The hotel is located in the lutyens residential place in Delhi. It is a landmark by itself. . Although it is located a bit far away from the airport approximately 40 mins., but is near to the bustling city center, Connaught Place, Pragati Maidan, Government Offices and Diplomatic Missions. This 294 room property also has been awarded as the “ 5 star diamond award” by “ American Academy of Hospitality”

Radisson Hotel, New Delhi: This 5 star property in the National Capital Region, located less than 5 km from the Domestic and International airport of Delhi and the near to the business hub of Gurgaon, The Radisson Hotel is truly one of the easiest ways in which one can make its trip to Delhi a memorable one. The Radisson Hotel simply oozes luxury and promises its guest a stay with an experience of a lifetime. This 29 room property also gets an edge with its five Food and Beverage services; specially one of the famous Restaurants in Delhi i. e. “ The Kabab Factory” truly gives an edge to this property.

About The Capital City

Delhi is capital city of India and is the largest metropolis by area and second largest by population. It also stands 8th in the world largest metropolis with more than 12. 25 million inhabitant in the territory and over 15. 9 million residents in the NCR (national Capital region) which includes Noida, Faridabad, Gurgaon and Ghaziabad. It is a modern city which has a history all around it. A tour of Delhi provides the visitors with much to see and admire ranging from the Mughal monuments to Modern Malls, from Traditional arts and crafts to trendy fashion shows. Delhi is a city which combines the historic and the modern in a unique way.

Delhi was the second most visited place after Andhra Pradesh with increase in foreign tourist to 2. 3 million in the year 2008 as compared to 2. 01 million in the year 2007 and 1. 9 million in 2006. It became the capital of India in the year 1911, after the British East India Company gained control of India during the 18th and 19th century and George V. the head of the East India Company decided to move back to Delhi and it announced it as the capital city of India. It was when the India gained independence from the British Rule, New Delhi was declared as its capital and seat of the government. New Delhi houses important offices of the federal Govt. including the parliament of India.

With the estimated net State Domestic Product of the Fiscal Year of 2007 of Rs. 1. 82 billion (US$24. 5 Billion) in nominal terms and Rs. 3, 364 billion (US$69. 8 billion), Delhi is the largest commercial center in Northern India. Delhi had a per capita income of Rs. 66, 728 (US$1, 450) in 2007 at current prices; it is the third highest in India after Chandigarh and Goa. Delhi has the largest and one of the fastest growing retail industries in India, because of which land prices are booming and it is currently ranked at 7th most expensive office hotspot in the world with prices at $145. 16 per square foot.

Along with its contribution in the economy, Delhi plays a significant role in being one of the hot tourist destinations in India because of numerous historical monuments present in the city. This can be seen with the example of many monuments of significance found in the city. With the Archaeological survey of India recognizes 1200 heritage buildings and 175 monuments in Delhi as national heritage sites. With the presence of the three worlds heritage sites i. e. The Red Fort, Qutub Minar and Humayun’s Tomb along with the architectural marvels like the Jama Masjid which is India’s Largest Mosque and India Gate gives as extra edge of attraction for the tourist in Delhi.

S. W. O. T. analysis of Taj Palace, New Delhi

SWOT analysis is divided into 4 parts

Strength

Weakness

Opportunity

Threats

Strengths

It has the largest convention center which can handle 700 personals at a single point of time.

The Orient express restaurant, one of the popular restaurants in the city, adds as an promoter to the hotel and helps in generating extra revenue.

The hotel is located in one of the prime locations and is very near to the airport which is a 10 min drive. As it is centrally located so it has a well connectivity with the city. Hence, easy access to travellers.

The rooms are divided into many types and also give the guests of option of different views as per guest connivance like pool view, garden view and city view.

For a pick up and drop facility the guest has an option of one of most luxurious car that is JAGUAR.

The 12 banquet halls can accommodate different types of function at the same time and which generates good revenue for the hotel.

Its spacious rooms give a full luxury experience with some extra luxurious options as per convenience of the guest.

It has the largest convention center which can handle 700 personals at a single point of time.

The Orient express restaurant, one of the popular restaurants in the city, adds as an promoter to the hotel and helps in generating extra revenue.

Weakness

The lighting in the lobby gives it a very dull look which creates a dull atmosphere in the lobby and for the guest who enters the hotel for the first time.

The parking area in the hotel is very less which generates problem during high occupancy and banquet functions.

Staffing of the not adequate which again is a problem during high occupancy.

It is located in an area in Sardar Patel Marg, which faces a massive problem of traffic jams which does keeps the traveller waiting on roads and hence, leads to reducing the curiosity of the traveller for visiting the hotel.

Less aggressive promotional activities taken place by the hotel in order to promote their product which in turn looses out its customers.

In comparison to its competitors the food and beverage outlets are very costly which again a drawback for the hotel.

The Oriental Express restaurant mostly invites the guests to the restaurant instead of allowing the walk-ins.

Opportunities

To promote and generate more revenue the hotel should be more aggressive in the promotion of the hotel. To promote the hotel some activities like food fest and exhibition can be held to promote the hotel.

The hotel should promote its food and beverage outlets to give stiff competition to its competitors for e. g. the oriental express which is a very famous restaurant should be promoted to give a good competition to ITC Maurya Sheraton’s Bukhara and generate more revenue.

Different schemes related to room tariff should be made and be promoted so the occupancy be increased and generates more revenue.

Contractual staff can be increased in order to provide efficient service to its guests during peak seasons.

The parking area should be improved so that it gives convenience to guests which are a problem in the food and beverage outlets.

Walk in guests should be allowed in the main restaurants like Oriental express so that it helps in increasing the revenue of the hotel.

Threats

There is a very tough competition of well known 5 stars in the city along with the upcoming hotels not only in the city but also in the NCR area are a big threat to the Taj Palace.

The hotel should be more aggressive in promoting the hotel in the area of food and beverage and the aim should be eating up the market of is competition hotels.

The food and beverage staff is not adequate which leads to customer dissatisfaction and leads to less revenue.

There should be a specialized restaurant in the hotel as it is the latest trend in the hotel industry like its competition hotels has such as the Bukhara by the ITC Maurya Sheraton Dakshin by Sheraton, New Delhi Hotel aims at eating up the market demand of the Taj Palace hotel, which indirectly reduces the revenue of the hotel.

Next door property by the ITC Welcomgroup i. e. ITC Maurya Sheraton aims at eating up the market share of “ Taj Palace. New Delhi”

Marketing strategies taken by Taj Palace, New Delhi

The market strategies are mainly divided into 3 parts mainly

Segmentation

Targeting

Positioning

Market Segmentation

Different marketing strategies are being used to promote the hotel and generate the max revenue where market consists of buyers, the buyers always by many reasons like needs, wants, locations, buying attitude and buying practices. For eg the needs and wants of the customers of a hotel in Goa will be different from the needs and wants of a guest in Cochin.

The Taj Palace is a luxury hotel by categorization, if the geographical segmentation is taken then the hotel mainly aims to target all the leisure guests who visit the city as the hotel is near to the airport is also tries to cater all the business clientele who comes on business trips in the city and it also try to take in the function of these guests like business meetings, seminars and conferences.

Taking the local crowed into consideration Taj Palace, New Delhi hotel tries to attract guest by providing them also with facilities of 12 banquet halls which can be used simultaneously and with 4 different types of Food and Beverage Outlets. It mainly aims at capturing the customers with upper and upper-middle classes i. e. mainly tourist or businessmen.

Targeting

The main target market has been set up by Taj Palace; it mainly aims at leisure and business clientele. As the hotel is situated the capital city the so the tourist who mainly visits the city are business and leisure. The leisure clientele will visit the city because of its history and historic monuments in the city which is a major attraction among the tourist.

There are significant offers and packages provided by the hotel to attract the customers. They are mainly seasonal packages. They also try attracting the local by its four restaurants and twelve banquet halls which can cater 700 guests. It also aims at meeting the standards of the company with the fact of satisfying its customers and generating maximum amount of revenue. Over the years Taj Palace Hotel, New Delhi has been able to meet the objectives by generating maximum revenue by maximum guest satisfaction.

Positioning

“ Taj” as a brand name in India which is something which is being accepted by the people of India as something with which they can associate themselves. It gives them a feeling of warmth and harmony to associate and a sense of pride in using the services of this brand. “ Taj Palace Hotel, New Delhi” takes this as the opportunity to attract the travellers and guest to its hotel. This helps in attracting the local crowed as well as the domestic travellers towards the product they offer. With the name “ Taj” which is associated with this hotel it helps the hotel in taking up the advantage to attract the foreign travellers who intend to stay in India and it is one of the branded hotels i. e. “ Taj Palace” with which they associate India with, especially when it comes down to staying in Delhi. Delhi being the Capital of India and “ palace” as a word associated with the brand name “ Taj” creates a psychological effect in the minds of the customers and hence it helps in increasing the revenue for the hotel.

Along with its rooms and extra facilities provided by the hotel, the Food and Beverage outlets such as the “ Oriental Express” provided by the hotel have been welcomed by the locals as well as travellers. This helps in creating a well planned and a good promotional tool in creating the psychological effect in the minds of the customers and helps in create repeat customers and hence generating revenue.

Critique by the author on the Marketing Strategies

The position of the hotel is that it is well accepted by the local crowd and the visiting guests. The hotel is also well settled because it is now operating for many years and it is clear about its target market. The Taj Palace is one of the land mark hotels in the city and has been publicized at a very good rate and has been able to capture the market since a long time.

The current scenario in the hospitality industry in the capital has completely changed, from the time the hotel was setup. Now there are a lot more 5 stars in the city which has given a stiff competition to Taj Palace and these hotels are eating up the market share of the hotel.

If we compare the promotional strategies of Taj Palace with its competition it is clear that its competition is much ahead than Taj Palace. Activities like food festivals or using media as the source of promotion is very less. Even the sister hotel Taj Mahal is much ahead than Taj Palace. Significant difference in the market positioning of the hotel has been seen over the years

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