Services Marketing Ppt

‘How does Taj group of hotels prevent Internal Cannibalization

from Ginger Hotels’

Executive SummaryUnder the hospitality business of TATA group there are

two hotel chains –Luxurious Taj Group of Hotels owned by Indian Hotels

Company Ltd (IHCL) Smart budget hotel chain Ginger owned by their

subsidiary Roots Corporation Ltd (RCL) . Problem - To show that there exists no internal

cannibalization between the customer base of the Taj Group of Hotels and Ginger Hotel.

To prove this we intend to show that the Target Market Segment of both these Hotels is completely different and so are the needs of their customers.

Customer Questionnaire:Number of Questions : 6Outputs from these questions: Type of the Customer. Needs of the Customer. Expectations of the Customer. Preferences of the Customer.

Employee Questionnaire:Number of questions : 6Outputs of these questions: Services provided.Clientele base

INTRODUCTION TO THE COMPANIES

VISITED

Vivanta by Taj- Pune

Rating : 5 StarAddress: 11, Koregaon Road, Pune, India.

Accessibility:7 km. from Airport, 3 km. from Railway Station, 5 km. from Bus Stand.

Hotel Description:Hotel is Located at the Koregaon in Pune surrounded by lush green residential area of Koregaon Park. It is the oldest 5 star hotel of Pune. It is very close to the city's business district and shopping areas.

Ginger Hotel

Rating : 1Star Address: Kala Khadak, Wakad Naka, Pune, India.

Accessibility:Central Park Hotel, in the Pimpri Chowk and 21 kilometres from Lohega on Airport of Pune and also near the IT sector of Pune makes the task of finding the easy for the tourists.

Hotel Description:Taj Ginger Hotel in Pune, India offers luxurious rooms that provide all the amenities that you would expect from three start hotels in Pune. The vision of Ginger hotel is to provide is a fresh and warm experience, of an unsurpassed value.

COMPARISON BETWEEN TWO

TAJ Targets the High Income

Group Innovative means of

improving service quality High level of personalized

service Spaciously comfortable

rooms with contemporary style(swimming pool or garden view)

Residency rooms for Business travels

Other amenities and services (internet, fax service, gift shop, spa, power back up ,etc)

Own restaurant and coffee shop

GINGER Targets the middle and low

income group Caters to Basic needs of

customers. More of self service Almost same kind of rooms

for different category of customers.

Basic amenities like internet, laundry , gymnasium, etc available

Some amenities like Spa, fax service, 24hr room service, etc not available

Restaurant and coffee shop is outsourced.

REASEARCH METHODOLOGY

Primary Research Objective: The primary research objective (PRO) of our project is to determine how Taj

group of Hotels prevents internal cannibalisation from Ginger Hotels.Secondary Research Objective: SRO 1: To understand customers’ perspective towards Taj Hotel and Ginger Hotel

on the basis of following: Annual income Willingness to spend Preference of features (Services) Purpose of visit Perception about both the Hotels SRO 2: To understand the perspective of Taj and Ginger Hotels on the basis of

following: Price tariffs Services offered Hotel’s USP Projection of the Hotel Customer category

Research Approach: Descriptive

Data Collection Method: Personal Interview – Intercept InterviewSeparate questionnaires were prepared for both the SROs.

Measurement Instrument:,Open ended questions, Descriptive Questions.

Sample Size: A sum total of 120 respondents were interviewed, out of which 106 are customers of either Taj or Ginger or both and remaining 19 are employees of either Taj or Ginger.

Time and Cost Requirement:Total time taken - 6 days.Cost - Rs. 500 Approx.

Analysis of Questionnaire

Customers perspectiveQ1.Have you visited any of the hotels?

45%

33%

28%

VISITED THE HOTELS

TAJ

GINGER

BOTH

Q2. Are your visits Company sponsored or Self Sponsored?

74%

21%5%

TAJ HOTELS

Company SponsoredSelf SponsoredBoth

Are your visits company sponsored or self sponsored?

28%

66%

6%

GINGER HOTELS

Company SponsoredSelf SponsoredBoth

Q3.What influences your decision of staying in a hotel?

Mul

ti Cui

sine/

Spec

ialit

ySp

a

Swim

min

g Po

ol

Concie

rge

Serv

ices

24 H

ours

Roo

m S

ervice

In R

oom

Che

ck In

/Out

Banqu

et H

alls

Loca

tion

0%10%20%30%40%50%60%70%80%90%

41%

3%0%6%

66%

31%

3%

69%81%

37%

47%51% 51%

37% 40%

72%

GINGER HOTELSTAJ HOTELS

Q4.How much would you be willing to spend for a room in a hotel?

1000-3000

3000-5000

5000-7000

7000-10000

10000 and

above

0%

10%

20%

30%

40%

50%

60%

GINGER HOTELSTAJ HO-TELS

Q5. What income bracket do you fall under?

below 2

lakhs

2-5 lakhs

5-9 lakhs

above 9

lakhs

0%

10%

20%

30%

40%

50%

60%

GINGER HOTELSTAJ HOTELS

Company perspectiveQ1. What is the price band offered in your hotel?

6%

63%

38%

ROOM TARIFF-TAJ

RS 5000-7000RS 7000-10000RS >10000

100%

ROOM TARIFF-GINGER

RS 1000-3000

Q2.What percentage of your customers are Company and Self sponsored?

TAJ GINGER0

20

40

60

80

100

120

72.5

43.3

27.5

56.6SELF SPONSOREDCOMPANY SPONSORED

Q3. How would you project your hotel to the customers?

VALUE FOR MONEY HOTEL

BUDGET HOTEL

BEST SERVICE PROVIDER

LUXURY HOTEL

0% 50% 100%

6%

0%

94%

81%

TAJ

VALUE FOR MONEY

BUDGET HOTEL

BEST SERVICE PROVIDER

LUXURY HOTEL

33.33%

66.67%

0.00%

0.00%

GINGER

Q4(a) Ginger Vs Taj

COST EFFETIVE

CUSTOMER LOYALTY

STAFF

COMFORT

AVAILABILITY

FACILITIES/SERVICES

LUXURY

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

TAJ

Q4 (b) Taj Vs Ginger

Q5. Does your hotel organize promotional events?

100%

TAJ & GINGER

YES NO

SEGMENTATION

Higher salary Higher ability to spend Higher Preference for luxury Higher Preference for Services Lower preference to cost / budget

hotels Lower preference to Ginger hotels

Lower salary Lower ability to spend Lower Preference for luxury Lower Preference for Services Higher preference to cost / budget

hotels Higher preference to Ginger hotels

TAJ Ginger

CONCLUSIONNo cannibalization prevalent between the two Tata

Group of Hotels viz: Taj and Ginger

Analysis shows that the TMS of both these hotels are entirely different

Both the hotels run on very different concept Taj : Service based Ginger : Cost based

THANK YOU