SEGMENTATION, TARGETING & POSITIONING

OF

Presented By:

Gaurav

MBA – 3rd

Roll No. -12

Sec. - B

FLOW OF PRESENTATION

Hotel & Tourism Industry

TAJ Hotels

Segmentation, Targeting & Positioning

Marketing Mix

Marketing Strategies.

HOTELS & TOURISM INDUSTRY Hotels in India have supply of 110,000 rooms.

According to the tourism ministry, 4.4 million tourists visited India in 2009 and demand will soar to 10 million in the year 2010 - to accommodate 350 million domestic travellers

India ranks 18th in business travel and will be among the top 5 in this decade

With demand-supply disparity, the room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years

Government has approved 300 hotel projects, nearly half of which are in the luxury range leading to increase in manpower requirements from 7 million recorded in 2002 to 15 million in 2010.

Hotels today are implementing innovative ways to capture demand.

'Hotel Industry in India' is set to grow at 15% a year.

TAJ HOTELS The Indian Hotels Company Limited (IHCL) and its subsidiaries

are collectively known as Taj Hotels Resorts and Palaces and are recognized as one of Asia's largest and finest hotel company

Mr. Jamsetji.N.Tata was the founder and opened first hotel The Taj Mahal Palace Hotel, Bombay in 1903

Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia

SEGMENTATION, TARGETING & POSITIONING

Hotel Segmentation in India are broadly classified into 7 categories, these are given blow----

Five Star Deluxe Five- StarFour Star Three Star Two Star One Star Heritage Hotels…..

Segmentation, Targeting & Positioning

Segmentation: The segmentation of the Taj Mahal hotel is mainly upon lifestyle and income. It focuses on upper class, luxury, leisure travellers and business professional.

Targeting:  Targeting the most luxurious segment. The brand will have properties on the best locales and attract the most premium customers. Home to the Royalty, heads of states, tycoons, captains of industry, corporate nomads, star celebrities, kings & queens and Hollywood royalty, Maharajahs and rockstars.

Positioning: The Taj marked out three separate entities for the Taj Group: Business, Leisure and Luxury. Though the concept of these sub-brands had come into existence earlier, in the mid nineties, it was in 1999-2000, that the hotels became operationally different. It positioned itself as luxury heritage hotel with excellent location and services.

Grouped into 3 categories-LuxuryLeisureBusiness

Core product is space - supplemented with services like restaurants, health club, banquets, discotheques, bar, business centers

Supplementary products include travel arrangements, ticketing, airport pick-ups, sightseeing, etc

Marketing Mix

Product:

Types of Accommodation

Tower Wing Rooms

Heritage Wing Rooms

Taj Club

Facilities and Services

PRICE As a result of various overheads and

superior quality, prices are not affordable by all

Rooms start at Rs 20,000 and suites start at Rs 75,000

The Presidential Suite is around Rs 6-7 lakh

The target audience comes to Taj for its ambience and world-class standards

High prices are justified as they help Taj retain exclusivity

PLACE

Taj Hotels resorts and Palaces comprises more than 60 hotels in 45 locations across India with 15 in International Locations

Taj offers vantage locations like industrial towns and cities, hill stations, wildlife destinations, historical and pilgrim centers

Also encompasses a unique set of iconic properties rooted in history and tradition

PROMOTION Loyalty programs, clubs, memberships,

privilege. Eg- Inner circle, JuniorLeague, club

Surprises such as weekend savers, value vouchers, book early get more

Offers during seasons and off-season Monthly letters to ‘Inner Circle

Customers’ about upcoming events Holiday package promotions at

exhibitions Cross-promotions

PHYSICAL EVIDENCE 5 star-hotel Well designed, spacious lobby Corridor aisles graced with genuine

artifacts and antiques Traditional Indian welcome to guests

PROCESS

Check-in Bell-person carrying luggage to room Butler service Food Laundry Child-care and baby-sitting Currency exchange Wake-up call Gift-shop, boutique, florist Check out

PEOPLE Skilled personnel Personal Agents Technological persons Travel agents Butler Bell-boys Restaurant staff House-keeping

Caters to two segments a) Foreign tourist in winter b) Domestic tourist in non peak season

Indians urged to take more short holidays through unique price package

More value offered at same prices in Goa, Sri Lanka, etc e.g.: Taj Samudra at Colombo at Rs.24,500 for 4 night holiday

Many first-timers now loyal customers Variety of holiday packages for various target groups e.g.:

Senior citizens, survivors etc. Inner Circle Junior League for children, arranging various

activities

Marketing Strategies

ACQUISITIONS

The overall strategy is to ensure that a third of the brand’s revenues come from global acquisitions

Acquisition of Ritz-Carlton in Boston and Campton Palace in San Francisco, and plans to enter gateway cities like Paris, Frankfurt, Chicago, and London in the near future

Alliance with Okura hotels in Japan