MINOR PROJECT REPORT

On The Topic

MARKETING STRATEGIES OF HOTEL TAJ, DELHI

Submitted To Prepared By

Mrs Amanpreet Karan Nasa

BBA (G) ΙΙΙrd Semester

02890201713

SRI GURU TEGH BHADAHUR INSTITUTE OF MANAGEMENT STUDIES AND

INFORMATION TECHNOLOGY

Affiliated to

GURU GOBIND SINGH UNIVERSITY

SEC-16C,DWARKA,NEW DELHI – 110075

CONTENTS

Sl.No

.

Particulars Page no.

1 Acknowledgement

2 Exclusive Summary

3 Chapter 1 - Introduction

1.1 - Introduction to project report

1.2 – Company Profile

6 Chapter 2- Literature Review

7 Chapter 3 – Research and Objectives

3.1 – Objectives of the study

3.2 – Research & Methodology

8 Chapter 4 – A Conceptual Discussion/ Marketing Strategies

4.1 Marketing Set - up

4.2 Product

4.3 Place

4.4 Promotion

4.5 Pricing

4.6 SWOT Analysis

4.7 Competitive Analysis

9 Chapter 5 - Conclusion

10 Chapter 6 - Recommendations

11 Chapter 7 – Limitations of the study

12 Bibliography

13 List of Appendices

CHAPTER 1

INTRODUCTION

Analysis of Marketing Strategies of Hotel Taj Palace, Delhi

1.1 Introduction to Project report

1.2 Company Profile

Taj Group of Hotels

Taj group of hotels is the largest chain in India- with several Hotels abroad also. The parent Hotel-The Taj

Mahal Hotel, Bombay is rated among the 10 best hotels in the world.

The History of the Taj

The founder of the house of Tata’s, Mr.Jamshetji Nuserwanji Tata, in 1894 formed the Indian Hotels

Company and built the exquisitely beautiful Taj Mahal Hotel in Bombay. The doors opened in 1903 and has

been a landmark by the Gateway of India ever since.

In 1971, the 220 roomed Taj Mahal Hotels in Bombay was converted to a 325 Roomed hotel, and a multistory

structure was built adjoining the original property. In 1972, the Lake Palace at Udaipur and Rambagh Palace

in Jaipur was linked to the Taj and a Chain was born. In 1974, a new company was floated, which created the

Taj Coromandel in Madras. In the same year the chain broadened with the acquisition of fort Aquada Beach

Resort in Goa.

In 1976, Fisherman’s Cove was built which is 30 minutes drive from Madras on the Bay of Bengal with a

Private Beach. In the same year, the Taj Group opened the Taj Flight Kitchen in Bombay, Catering to both

domestic and international flights.

In 1978, the glittering Taj Mahal was opened in Delhi, and this was followed by The Taj Ganges in Varanasi

after two years.

The1980’s was to see a rapid expansion of the group and the gigantic Taj Palace in New Delhi was opened.

The Shiv Nivas Palace at Udaipur and TAC (Taj Air Caterers) in New Delhi Airport were also opened.

Followed by this was the opening of Taj Residency in Bangalore, the Savoy Hotel in Ooty and the Raj Mahal

Palace in Jaipur and the Taj View Hotel in Agra. Taj has been operating in the USA, UK, the Maldives, Oman

and Srilanka and the Taj Empire continues to expand further. Today Taj has 93 Hotels in 55 destinations and

is the largest Hotel chain in the country. Only one hotel group knows India and South Asia so well, and does

so with such consummate style. From its earliest days, taking residence with The Taj Group has been a grand

occasion. When The Taj Mahal Hotel, Mumbai, opened in 1903, the event was described by The Times,

London, as “a resplendent debut”.

Taj Palace is Luxury Hotel under Taj Group of Hotels. It is ideally located, 10 minutes from the Airport, 10

minutes from down town situated amidst 6 acres of landscaped greenery; Taj Palace hotel offers convenience

and gentle ambience. The hotel combines attractive functionality with style in a peaceful symbiosis. In Taj

tradition, one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special

emphasis on cuisine. Taj Palace has 421 rooms and suites. Each Deluxe Business floor room is a modern

business centre. So too is their exclusive club floor rooms. Within quiet reason, everything that one wishes is

available round the clock Taj Palace hotel including the finest cuisine in town. On request in-room fax, E-mail

facility, Laptop computer, background information on major Indian industries, plus on line accessibility to

world business information is available. There are six restaurants and a bar in the hotel to offer its guests. To

name the few are Orient Express, Isfahan, and The Tea House of the August Moon, Handi and My Kind of

Place (Discotheque). There are six Luxury Hotels, which offer a whole of elegant living and upto the minute

business amenities, as a part of Rs. 300 crore upgradation programme. All Luxury Hotels now have renovated

rooms, a state of the art Business Centre and a modern Fitness Centre. The Taj group also has eight Business

Hotels spread over different corners of the country. There are 20 Taj Leisure Hotels out of which 16 are in

India and 4 are abroad.

Today, The Taj Group is India’s largest and finest hotel chain offering 48 hotels in 34 locations across the

subcontinent. This growth has been as diversified as it has been impressive. In addition to superlative luxury

hotels, The Taj Group includes business hotels, beach resorts, palace, garden retreats and other comfortable

accommodation. Internationally, The Taj Group has a few properties in key cities like London, New York,

Washington DC Chicago and locations in the Middle East and in Africa.

The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India, together

with superb comforts and modern facilities. All of these combine to make The Taj Experience a must.

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts

and Palaces and is recognised as one of Asia's largest and finest hotel company. The Taj, a symbol of Indian

hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces comprises 66 hotels in 42

locations across India with an additional 16 international hotels in the Maldives, Malaysia, Australia, UK,

USA, Bhutan, Sri Lanka, Africa and the Middle East. Spanning the length and breadth of the country,

gracing important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and wildlife

destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality, vantage locations,

modern amenities and business facilities. IHCL operate in the luxury, premium, mid-market and value

segments of the market through the following: Taj (luxury full-service hotels, resorts and palaces) is our

flagship brand for the world’s most discerning travelers seeking authentic experiences given that luxury is a

way of life to which they are accustomed. Spanning world-renowned 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 unique experiences and lifelong memories.

Taj also encompasses a unique set of iconic properties rooted in history and tradition that deliver truly

unforgettable experiences. A collection of outstanding properties with strong heritage as hotels or palaces

which offer something more than great physical product and exceptional service. This group is defined by the

emotional and unique equity of its iconic properties that are authentic, non- replicable with great potential to

create memories and stories. Taj Exotica is our 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 centered around high end

accommodation, intimacy and an environment that allows its guest unrivalled comfort and privacy. They are

defined by a sensibility of intimate design and by their varied and eclectic culinary experiences, impeccable

service and authentic Indian Spa sanctuaries. Taj Safaris are wildlife lodges that allow travelers to experience

the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer India’s first and only

wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience

based on a proven sustainable ecotourism model.

Upper Upscale Hotels (full-service hotels and resorts) provide a new generation of travelers 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 full service hotels and resorts) is a pan-India network of hotels and resorts that offers

business and leisure travelers a hotel designed, keeping the modern nomad in mind. At the Gateway Hotel, we

believe in keeping things simple. This is why, our hotels are divided into 7 simple zones- Stay, Hangout,

Meet, Work, Workout, Unwind and Explore. As travel often means more hassle than harmony, more stress

than satisfaction, modern travelers are looking for smarter choices. Driven by our passion for perfection, we

welcome our customers to a refreshingly enjoyable and hassle-free experience, anytime, everywhere. Offering

the highest consistency in quality, service and style we set new standards and take the unwanted surprises out

of traveling. Our warm welcomes make our guests feel at home, away from home and our crisp and courteous

service empowers them to get more done with greater effectiveness and control. And through our unrivalled

network we provide service that is effortless, simple, never overwhelming, always warm. Ginger (economy

hotels) is IHCL’s revolutionary concept in hospitality for the value segment. Intelligently designed facilities,

consistency and affordability are hallmarks of this brand targeted at travelers who value simplicity and self-

service. Taj Hotels Resorts and Palaces is committed to replicate its domestic success onto international

shores with plans to build an international network of luxury hotels, which will provide an exemplary product-

service combination and in the process create a global brand. The current international portfolio includes

luxury resorts in the Indian Ocean, business and resort destinations in the Middle East and Africa, serviced

apartments in the UK, the first hotel in Australia and three a top-end luxury hotels in the US.

Throughout the Company’s expansion, its mandate has been twofold: to infuse a sense of Indian heritage and

culture within each diverse property, while also anticipating the needs and desires of the sophisticated

traveller. Over the years, the Taj has won international acclaim for its quality hotels and its excellence in

business facilities, services, cuisine and interiors. The Taj strengthened its presence in the Indian Ocean rim

with the Exotica Brand. The Taj Exotica was evolved as part of Taj Hotels Resorts and Palaces intent to

position it as a brand that is clearly differentiated by its product philosophy and service design. The Taj

Exotica Resort and Spa, in Maldives is centered on high-end accommodation, intimacy and an environment

that allows its guest’s unrivalled comfort and privacy. Taj Hotels further expanded its global footprint by

securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar

Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan. The most significant additions to

the portfolio have been The Pierre, the iconic landmark hotel on New York's Fifth Avenue, Taj Boston and

Blue, Sydney. The presence of Taj Hotels Resorts and Palaces internationally has been developed through a

network of Taj regional sales and PR offices in the United Kingdom, France, Germany, Italy, Dubai,

Singapore, Australia, Japan, Russia and the United States of America. At the Taj Hotels Resorts and Palaces

luxurious living and fine dining find common ground. Whether it is introducing exotic world cuisines to India

or taking authentic Indian fare to the world, the Taj Hotels Resorts and Palaces is renowned for the eclectic

culinary experiences it brings to its guests. Through a vast repertoire of award-winning restaurants, legendary

recipes from royal kitchens and celebrated food festivals, the Taj has pioneered innovation in fine dining

across the world. Taj Hotels also promise a whole new experience of tranquillity and total ‘wellness’, through

Jiva Spas a unique concept, which brings together the wisdom and heritage of the Asian and Indian

Philosophy of Wellness and Well-being. Rooted in ancient Indian healing knowledge, Jiva Spas derive

inspiration and spirit from the holistic concept of living. There is a rich basket of fresh and unique experiences

under the Jiva Spa umbrella of offering, Yoga and Meditation, mastered and disseminated by accomplished

practitioners, authentic Ayurveda, and unique Taj signature treatments. Royal traditions of wellness in service

experiences, holistic treatments involving body therapies, enlivening and meaningful rituals and ceremonies

and unique natural products blended by hand, come together to offer a truly calming experience. IHCL

operates Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by

Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in

Mumbai and Kochi, in Kerala.

IHCL also operates Taj Sats Air Catering Ltd., the largest airline catering service in South Asia, as a joint

venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines. Additionally, it

operates the Indian Institute of Hotel Management, Aurangabad since 1993. The institute offers a three-year

diploma, designed with the help of international faculty and has affiliations with several American and

European programmes. CORPORATE SUSTAINABILITY AND SOCIAL RESPONSBILITY As a part of

Tatas; India’s premier business house; we; at Taj Hotels, have always believed in society and environment

being integral stakeholders in our business along with our shareholders, customers, vendors and others. Over

the last decade, the movement towards ecologically sound tourism has gained urgency and importance across

the globe and we recognize that responsible practices in vogue are as diverse as the geographies. We

promote corporate citizenship through our strategic public-private partnerships which encourage building

livelihoods of less-advantaged youth and women. The causes we promote include reducing malnutrition,

promoting indigenous artisans and craftsmen and enhancing employability of identified target groups by

sharing our core competencies as a leading hospitality company. We encourage training and development of

differently abled youth. We at Taj have the unique scope and opportunity to develop raw potential into a

skilled workforce that is immediately employable by various players in the industry. A majority of our

community projects are focused around extending our key strengths in food production, kitchen management,

housekeeping, customer service and spas to promote economic empowerment of candidates from vulnerable

socio-economic backgrounds. We are fully committed to the cause of building a sustainable environment by

reducing the impact of our daily operations on the environment and improving operational efficiencies,

resource conservation, reuse and recycling of key resources. Our seventh Corporate Sustainability Report

was submitted to the United Nations Global Compact society in August, 2009. The United Nations Global

Compact is a strategic policy initiative for businesses that are committed to aligning their operations and

strategies with ten universally accepted principles in the areas of human rights, labor, safety & security,

environment and anti-corruption. This Corporate Sustainability report also serves as our GRI (Global

Reporting Initiative) as well as Triple Bottom Line report. The report focuses on identified priorities at IHCL

and responds to key stakeholder needs. We plan to continue and further strengthen our commitment to the

environment and societies in which we operate.

We believe in continuous learning and sharing and would be delighted to have your thoughts and suggestions.

EARTH In an endeavour to reinstate its vision and efforts to boost sustainable tourism, Taj Hotels Resorts and

Palaces presented EARTH (Environment Awareness & Renewal at Taj Hotels) this year. Implementing

schemes such as the Gangroti Glacier Clean-Up Expedition, as well as designated Earth rooms, which

minimise environmental impact, Taj is one of Asia’s largest group of hotels to commit to energy conservation

and environmental management. EARTH has received certification from Green Globe, the only worldwide

environmental certification program for travel and tourism. The Taj began a century ago with a single

landmark – The Taj Mahal Palace Hotel, Mumbai. Today, the various Taj hotels, in all their variety and

historical richness, are recognised internationally as the symbols of true Indian hospitality. The Company’s

history is integral to India’s emergence into the global business and leisure travel community; and looking to

the future, Taj Hotels Resorts and Palaces is well positioned to meet the increase in travel activity with the

rapid expansion of the Indian economy.

CHAPTER 2

LITERATURE REVIEW

A business must be viewed as a customer satisfying process, not a goods/services producing process.

Products/Services are transient, but basic needs and customer groups endure forever. Company should first

identify the need of a customer & then try to identify the potential user group. Each business unit need to

define its specific objective, once the business unit has formulated its objective, the business manager knows

the part of environment it needs to monitor to achieve its goal. For e.g. the hotel industry company need to

watch the various event happening in that particular city, current and new competitor, technological

development that might affect the marketing. In general business unit has to monitor key external macro

environment forces like demographic economic, technological, political/legal and social culture and

significant microenvironment actors like customers, competitor etc, that effects its ability to earn profits. After

seeing all the above aspects the next thing that has to be considered is marketing process.

The marketing process consists of "analyzing marketing opportunities, developing marketing strategies,

planning marketing programs, and managing the marketing effort".

The first phase should be to analyze an external, internal and long run opportunities in the market for

improving the performance. To evaluate its opportunity the company needs to operate a reliable marketing

information system. Marketing research is an indispensable marketing tool, because company can serve their

customers only by researching there needs and wants, their location, their visiting practices in the hotel etc. So

in my case I m performing the function of marketing information system to let the company know what is the

reason for the recession period in there company and how they can overcome to it.

The purpose of marketing research is to gather significant information about the marketing environment.

Company's microenvironment consist of all the players who effect the company's ability to provide a service

viz. customers and competitors. In macro environment it consists of demographic, economical, physical,

political/legal and social/cultural forces that affect its sale and profit. An important part of gathering

environmental information includes measuring market potential and forecasting future demand.

The next step is the marketing strategy; it is basically a game plan for how to achieve a particular goal of a

company. To transform marketing strategy into marketing programs a company must make basic decisions on

marketing mix, it also has to decide how to divide the various tools in the marketing mix. Marketing mix is a

set of marketing tools that the firm uses to pursue its marketing objective in the target market.

There are literally dozens of marketing mix tools. McCarthy popularized a four-factor classification of these

tools called the four Ps: product, price, place and promotion. Not all marketing mix variables can be adjusted

in the short run. Typically the firm can change its price, sales force size, and advertising expenses in the short

run. It can develop new products and modify its distribution channel only in the long run. Thus the firm

typically makes fewer period-to-period marketing mix changes in the short run than the number of marketing

mix might suggest. The most basic marketing tool is "product or service" the company's offer to the market,

which includes the product or service quality, design, features and branding. The company, which will

provide good service, will have a competitive advantage in the globally competitive marketplace. A critical

marketing tool mix is price, the amount of money that customers pay for the product or service. On the price

the company has to decide the discounts and allowances. Its price should be commensurate with the offers

perceived value. If it is not, buyer will turn to competitor's product. Place, another key marketing mix tool,

includes the various activity the company undertakes to make the product accessible and available to target

customers. Company must identify, recruit, and link various marketing facilitators to supply its services

efficiently to the target market. Promotion, the fourth marketing mix tool, includes activities the company

undertakes to communicate and promote its product to the target market. Company has to setup

communication and promotion programs consisting of advertising, sales promotion, public relation and direct

and online marketing.

Thus winning companies will be those who can meet customer’s needs economically and conveniently and

with effective communication.

CHAPTER 3

3.1 Objectives

To present an in-depth analysis of marketing strategy of Hotel Taj Palace in the Hotel industry.

To study the product strategy & price strategy

To study the sales promotion schemes in and outside Delhi.

To study the advertising policy.

To critically analyze the company with regard to their marketing policies and strategies.

To make a comparative analysis of marketing strategy of Hotel Taj Palace with Hotel Hyatt Regency.

This report has been written keeping in mind the objectives mentioned above.

3.2 RATIONALE AND METHODOLOGY

RATIONALE

This section describes why I have chosen the particular topic for making an organization research project,

what is the project undertaken and explain in brief the outline of the project. I am making a project on Hotel

Taj Palace The objective of this project report is to present an in-depth analysis of marketing strategy of a

company in the same industry which are comparable pertaining to marketing strategies adopted by them under

four different heads - Product, Price, Place, & Promotion. Along with this, it was important to critically

analyze the company with regard to their marketing policies and strategies.

There are certain factors, which influence me to choose a project in Hotel industry. First of all, I have an

attraction for glamour and I love to connect with it. Secondly, what attracts me is the tough competition, as

more international chain hotels are coming to India, so hotel industry is facing a tough competition. Third

factor is related with the incident of "World Trade Tower" attack in USA, which took place on 11th

September 2001, due to which people have, low trust in flights, and therefore foreign tourists are decreasing in

number. Fourth factor is also of a similar type to the third factor, it is the incident which took place on 13th

December 2001, in "Indian Parliament house" when a firing broke out there between terrorists and police due

to which some casualties happened, due to these factor foreign tourists have a threat in their minds, the

number of tourists has been decreased and now there is recession in Indian Hotel Industry. Therefore,I have

decided to choose Indian based hotel Taj Palace to analyze its marketing strategy and in keeping in mind all

the above factors recommend the company that what could be the strategies and how it can overcome the

situation.

Under marketing, the areas that were to be covered were numerous. It was imperative to cover the process of

planning and execution of the concept, Pricing, Promotion, and the Distribution/ Place strategy. Also, the

other activities undertaken by the organization such as marketing research, planning, implementation, and

control, etc., were to be covered. Within marketing planning, various decisions such as those on target

markets, market positioning, pricing, distribution channels, physical distribution, communication, and

promotion are extremely important decisions that have to be made by the marketing managers of any

organization and after getting relevant information the findings have been analyzed and compiled, which

highlights the area undertaken in the Research of the Hotel.

METHODOLOGY

The study of the hotel is carried out from the Strategic Marketing point of view and analysis of the gathered

data is done in the light of academic knowledge secured from the Institute. After getting relevant information

the findings have been analyzed and compiled, which highlights the area undertaken in the Research of the

Hotel.

The Data hunting for the Project was conducted in various logical and systematic steps to obtain maximum

information on this context keeping the objective in the mind. Broadly speaking the data was collected from

one source only - Secondary. Well-drafted .Secondary information, which also gave immense data inputs, was

from brochures, pamphlets, In-house Journals & various other Magazines and Text books in this connection.

CHAPTER 4

MARKETING STRATEGY

4.1 Marketing Set-up

Both Taj Palace and Taj Mahal have a combined Sale & Marketing team. For operational convenience, the

company has divided the marketing operations into two types viz.,

Inbound

Outbound

The Inbound team is in charge of clienteles coming towards Delhi. They promote and market the hotel

products and services and other facilities only to those specific customers who intend to stay in Delhi. This

also assists the Sale & Marketing team in knowing what is the total market in Delhi and what percentage of

this customers stay with the Taj hotels in Delhi. The company can also study the percentage of repeat

clienteles, duration of stay, frequency of visits and also make future forecasts and project trends. This also

gives the company ample database of the incoming (potential) traffic to the city.

Similarly, the outbound team is in charge of potential customers going away from Delhi. The Sale &

Marketing team (Outbound) interacts with such customers and try to promote various Taj hotels outside Delhi.

The idea is to bring or retain business within the Taj Group of companies. The customers are made aware of

the Taj Group of Hotels and what comforts and Luxury they get within a specific budget. Thus the Outbound

team solely focuses their Sale & Marketing efforts at the potential customers going away from Delhi to other

cities within the country as well as foreign destinations where Taj has their properties.

The idea of bifurcation of the Sale & Marketing tasks into two categories of Inbound & Outbound makes the

operations simpler and highly efficient. But sometimes, sorting out the customers may not be completely

possible; in such cases both the teams are equally responsible to promote the products & services of the

hotels. The bottom line is - that the Taj hotels in Delhi and Taj Hotels in other parts of the country and the

world are with in the strong hands of these talented Sales & Marketing professionals who bear testimony for

the continued expansion and growth of the group over the years.

4.2 Product:

Hotel is a place, which offers boarding and lodging for a certain charge. The concept has changed over the

years from “Home away from home” to “Office away from home”. Broadly speaking, the product, which a

hotel offers, falls into two categories: -

Accommodation: - which includes Rooms, Food & Beverage.

Service: - which is an intangible product.

Food & Beverage - which is also a perishable commodity like a room, are served from different F&B outlets

like restaurants, coffee shops, banquets, room’s service, specialty restaurants, bars etc.

Accommodation: - Further classification of Accommodation would make the range of Products wider; The

Rooms could vary from a Standard deluxe room to luxurious Presidential Suites which differ considerably in

the facilities offered and of course the Tag or Tariff on them. The banqueting facilities, halls and conference

rooms also come under the ambit of the Rooms division.

Rooms that work smarter: -

The Taj Palace hotel has 421 guest rooms of which 381 are deluxe rooms and 40 are Suites. Guest rooms of

Taj Palace combine modern facilities with relaxing decor. Deluxe Business Floor Rooms are indulgently

comfortable whilst being, virtually, an office away from home. The Club Rooms of Taj Palace offers guests a

world of exclusive services and privilege. The Club floor rooms provide personalized services to the guests

round the clock, comfortable large areas, and the conference rooms suited to conduct private meetings of up to

ten persons are just a few facilities to talk about. Luxury Terrace Suites are spacious, individually appointed

with separate lounge, dining and work areas and a terrace garden. The Executive Suite combines luxury and

modern convenience for excellence.

The Standard rooms and deluxe rooms offer complementary airport transfer, complementary breakfast, in-

rooms fax machine and butler on call. Both Standard and Deluxe rooms are now equipped with ‘Flecon

System’ through which the guest can regulate the air-conditioning and light intensity in the room, obtain

World Time and operate the night light at the flip of a button. E-mail and Internet can be accessed in both the

Standard and the Deluxe Rooms.

In the days gone by, the invading armies came from the Northwest. But today they come from all over the

world. New Delhi, India’s capital city is a magnificent tourist attraction and important trading and commercial

centre. The Taj Palace Hotel is the most distinguished residence in New Delhi for Heads of State and

Corporations, Business tycoons and Luxury tourists, offers a spectacular choice of accommodation.

This session would list below the product and services offered by Taj Palace Hotel and what makes them

unique from the rest of the hotel \s, whether it is the rooms or the service.

The Taj Club: -

It is a known fact that a business traveler is a much-pampered person indulged with comforts and

conveniences unheard of even a decade ago. However a yearning has undoubtedly arisen for a special

privilege, an inner sanctum, an Exclusive Club. Born of desire, The Taj Group of Hotels presents the Taj club,

which offers unique world of facilities and privileges, both essential and extraordinary.

The Taj Palace, ND accommodates two floors of club facilities, linked by a grand staircase. The Club Rooms

are inviting and exude a subtle touch of extravagant. The Club Lounge here offers the modern businessman

delighting facilities and services which are listed below,

The Club Complementaries: -

Complimentary Airport Limousine transfer.

Exclusive check-in and check-out (for credit transactions) on the floor itself.

Exclusive check-in (9.00 am) and late check-out (6.00pm)

A welcome drink on arrival.

24-hr valet service.

A complimentary deluxe Continental breakfast in Taj club Lounge.

Complimentary cocktails with a selection of hors d’oeuvres in the Taj Club Lounge.

Complimentary use of the meeting room on The Club floor for two hours (Subject to availability)

Complimentary tea and coffee throughout the day in the Taj Club Lounge.

Complimentary use of gymnasium, steam and Jacuzzi.

A complimentary bottle of imported wine.

Complimentary chocolates, fresh flowers and a fruit basket.

Personal electronic safe in the room.

Personalized stationery

A choice of newspapers and magazines.

Rooms contribute to 70% of the total revenue where as F&B (banquets, restaurants and other outlets)

collectively contribute only 30%. Also the profit margins for the rooms are much higher as compared to a

mere 7-10% from the Food and Beverage section.

Broadly speaking Taj Palace has five categories of rooms,

Standard Rooms

Superior Rooms

Deluxe Business Rooms

Taj Club Rooms

Suites Rooms ->

Executive Suites

Deluxe Suites

Luxury Suites

Presidential Suites

The distinction between the Standard room and the most expensive Presidential Suites is the Value addition

and imagery and also the premium tariff rates associated with the Presidential suite. Facilities like

complementary breakfast, Limousine transfer, Happy hours, Complimentary valet service and scores of other

services accompany these rooms based on the category. Guest rooms combine modern facilities with relaxing

decor. Deluxe Business Floor rooms are indulgently comfortable whilst being, virtually, an office away from

home. The Club Room guest enjoys personalized service round the clock. The Executive suite combines

luxury and modern convenience par excellence. The Luxury Terrace suites are spacious, individually

appointed with separate lounge, dining and work areas, and a terrace garden. The Terrace suites are ideal for

Al Fresco dining.

The comforts and facilities of all 421 guest rooms and luxury suites are splendid. A second look reveals that

each Deluxe Business Floor room is a modern business centre. so too, the hotels exclusive Club Floor Rooms.

On request, in-room fax, E-mail facility, laptop computer, background information on major Indian

industries, plus on-line accessibility to world business information. Guests enjoy modern comforts and warm

hospitality in all 421 rooms and Luxury suites. Service is of the highest order as is to be expected, around the

clock.

Business Centre: -

It offers several useful facilities 24-hrs a day, seven days a week. These include Facsimile, Internet, and E-

mail, Color photocopying and legal library, as well as laptops, city pagers and mobile phones on rental basis.

Taj Palace Business Centre is designed to give the best to the business community who do require

sophisticated communication facilities and other gadgets to stay connected to the rest of the world while at the

Hotel. With no exaggeration it could be said that the guest gets the best of best services and facilities which

are more than necessary for a modern business man, and also feel at home while at work. The hotel calls this

concept “An office away from home”.

Banquet Facility: -

The hotel provides facility for orchestrating parties and banquets, conferences, seminars and symposiums. Taj

Palace has 11 Banquet halls with a capacity of 15 to 1600 persons (Auditorium Style) or 15 to 2500 persons

for Cocktails/ Receptions. It also has two huge Lawns to organize Fork Buffet / Standing Buffet also for

outdoor functions. The conference aids includes simultaneous translations in 5 languages. The banquet halls

of various size, decor and interiors, capacity suit all kinds of occasions including receptions, marriage parties,

conferences, meetings, get-togethers, cocktail parties and scores of other functions. The banquet halls are very

much flexible for various types of seating arrangements and set-ups like Fish-bone, Theatre style, Class room

style, Auditorium type etc. the Banqueting facilities offered by the hotel could be matched to any other

competing hotels and is par excellence.

The Food & Beverage:-

Division accounts for roughly 30% of the total revenue earned by the hotel. There are numerous Food &

Beverage outlets, but broadly they could be segregated into

Food & Beverage Outlets: -

Restaurants Coffee Shops Bars Room Service Banquets

Taj Palace has four Restaurants and one Night Club and a Bar. To name the few are Orient Express, Isfahan,

The Tea House of the August Moon, Handi and My Kind of Place, which is the discotheque and the hottest

and most wanted place in the city, especially among the youth.

Tea House of the August Moon: -

The Taj Palace’s Chinese specialty restaurant is the in place for the gourmets and adds to the unabashed

delight of aficionados of this great cuisine. Its Chinese Combo-Buffet Lunch includes a choice of starters

presented as a buffet. The Combi (nation) Buffet offers the guest a choice of soup, served steamy hot. There

are six salads and two vegetarian and two non- vegetarian specialties, rice and noodles. There is a different

chicken dish on offer every day and for the second meat dish, the guest could opt for pork, beef or fish. The

meal could be topped with a delectable dessert. The menu for the Combi-Buffet Lunch charges daily.

Orient Express:-

Orient express is the only restaurant in the country to feature in the “50 great Hotel Restaurants of the World”.

It is a theme restaurant and the entire set-up is that of a train and any guest who aboard Orient Express would

get lost in the sheer opulence of the legendary train, recreated down to the minutest detail. The Exquisite

delight the menu offers is savored by anybody with a palate for food. It also serves hard drinks and acts as a

bar for the hotel. Orient Express offers an excellent selection of premium red and white wines, champagnes

and house wines.

Handi: -

The Handi is one of the most popular Indian restaurants in the Capital city. The restaurant offers both ‘Ala

Carte’ and ‘Table-d- hotel menus to its guests. The hotel organizes various food festivals (Indian) and takes

Handi as a platform for its promotional schemes. The decor and ambience of the restaurant, coupled with the

mouth-watering Indian specialty dishes makes the dining experience a memorable one even to a gourmet

critic. It offers specialties from Northern as well as Western India.

My Kind of Place: -

It is the most wanted Discotheque in the city and it is enjoyed by people of all ages. The DJ plays music on

request, which includes- Rap, Reggae, Techno, Pop, Soft, Fast numbers and also Heavy metal on request. The

songs could be dedicated to anyone as desired by the guest. Food & beverages are also served out here to

rekindle the lost energy at the dance floor.

Taj Fitness Centers: -

Executive stress- In today’s tough, demanding world, it is not just a buzz-word (Fitness). It is a daily

occupational hazard. Hectic schedules, constant travel, and job pressures - not to mention relentless routine -

all add up to rising levels of physical exhaustion and mental tension. No wonder keeping fit is a part of every

busy executive’s agenda.

The Taj Group of Hotels gives it due priority by incorporating full-fledged Fitness Centers in all Taj Luxury

hotels in Metro-cities. Taj Palace too has a fitness centre which could be availed by her guests. Complimented

by facilities for a variety of out-door sports and swimming. The Fitness centre offer the guests many different

ways to ‘work out’ - Weights, Dumbbells with bench, Shoulder press, Pulley weights, Abdominal board,

Treadmills. A Step Climber with a monitor. The fitness centre at Taj Palace also offers a choice of Aerobic

exercise tapes.

Other facilities include Steam baths, Jacuzzi and Chilled showers. Trained Masseurs are on hand to give the

guest a soothing yet invigorating body massage with pure olive -oil, which is equated to 45 minutes of sheer

bliss. The fully air-conditioned, richly carpeted fitness centers, all gleaming marble and granite, are open all

the seven days of the week. Its facilities are available to all resident guests of the Taj Palace hotel.

Other Services & Facilities: -

24-hour room service

Free safe deposit lockers

Express laundry/ dry cleaning

Purified water supply

Doctor-on-call

Full-equipped Business Centre

24-hour fax/ telex facilities.

3 Meeting rooms

Work station availability

Laptops on hire

Secretarial service

Knight Ridder on-line service

Currency Exchange

Travel assistance

Car hire service

24-hour Coffee Shop

6 Restaurants & Bars

Night Club

8 luxurious Banquet Rooms

Shopping arcade

Fitness Centre

Beauty shop

Arrangements made for golf and tennis

4.3 Place:

Location/ Place play a significant role in the type of clientele who would be using the product. The very type

of a hotel is determined by its location. For example - A hotel in a highway is a motel, similarly there are

beach hotels, floatel, tourist hotel, transit hotel, and business hotel etc. convenience is another factor

associated with the selection of a hotel (location). A guest would not like to stay in a hotel, which is 50-100

kms away from the city when he is come for some business in the city. He would look for his convenience and

how well it is connected to the rest of the city and its proximity to the transportation terminals like airports,

railway station etc.

Taj Palace is ideally situated amidst six acres of landscaped greenery’s and is only 10 minutes from the

Airport and 10 minutes from down town. To be precise the hotel is 13 kms from the International Airport and

a minute’s drive from Daula Kuan, in the Sardar Patel Marg, which is a traffic free road with not much of

traffic bottlenecks. The hotel welcomes with a longest driveway entrance in the city and lush green meadow

and garden, which is a magnificent sight. It also allows easy entrance and exit for cars and other long vehicles,

unlike other hotels in the city where there is too much congestion, clustering of vehicles and irritating

bottlenecks. The location of the hotel is spectacular and it also offers a fabulous view, both from inside and

outside the hotel.

New Delhi became the Capital in 1911 - when the British administrators moved from Calcutta - and the

Capital of the Republic, since independence, in 1947. In fact, modern Delhi embraces the foundations of

seven earlier cities dating back to the eighth century. There are many tourist sights within easy reach of the

hotel: temples, tanks, walls, ruins, gateways and citadels, of which the most famous is the Red Fort.

Proximity to Embassies: -

All the embassies and High Commissions of the countries of the world are spread in and around

Chanakyapuri, which just five minutes from the Taj Palace hotel, which is why most of the Ambassadors and

high Commissioners prefer to stay in this hotel.

Security: -

Taj Palace is located in the South Delhi, distant enough from the commercial hub of the city, which makes it

the safest hotel in Delhi. For example - A hotel like Hyatt which is surrounded by tall building could be an

unsafe place for a Diplomat whose life is at threat as he could be shot operating from any of these neighboring

buildings. Also, Hyatt’s entrance is so close to the road, a car planted with a bomb can cause tremendous

damage to both human and property (in the worst of the cases). Where as Taj Palace is far from such kind of

threats, thanks to its strategic location.

Distribution: -

Taj Group of hotels has three properties in Delhi of which two are in the Taj Luxury hotels category.

Taj Mahal - Luxury hotel

Taj Palace - Luxury hotel

Ambassador - Budget hotel

The strategic spread of Taj hotels in the Capital city gives the group an edge over its competitors like Hyatt or

Oberoi, which are single properties in the city. Also these hotels cater to customers with different pocket-

sizes. It is also in Taj’s advantage that a guest who wishes to go to other cities other than Delhi would like to

move with a chain rather than select separate single properties. The importance of distribution could be

emphasized by the above example. Thus the organized distribution of Taj Group of hotels offers to a variety

of pockets and also number.

Delhi has 2200 rooms in the five star categories as the total market and both Taj Palace &Taj Mahal combined

have 300 + 421 = 721 rooms which is a good one third of the total market. The prominence of distribution

need not be further stressed and emerges a clear winner when it comes to the spread and coverage of segments

and it has no competition in India (Leave aside Delhi).

The Taj Group is India’s largest and finest hotel chain offering 48 hotels in 34 locations across the sub-

continent. This growth has been diversified, as it has been impressive. In addition to superlative Luxury

hotels, the Taj Group includes Business hotels, Beach Resorts, Palace hotels, Garden retreats and other

comfortable accommodations. Taj leisure hotels are situated all throughout India. In south zone there are 17

Leisure hotels, in the North zone there are 11 hotels, in the west zone there are 6 hotels. In the sub-continent

there are 5 Taj Leisure hotels situated in Colombo, Bentola (Srilanka), Maldives and Kathmandu (Nepal).

There are 8 Taj Business hotels in India situated in Bangalore, Hyderabad, Aurangabad, Nashik, Vizag,

Ernakulam and Calicut.

Internationally, the Taj Group has a few properties in key cities like London, New York, Washington DC,

Chicago and locations in the Middle East and in Africa.

The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India, together

with superb comforts and modern facilities. All of these combine to make The Taj Experience a must.

4.4 Promotion: -

Taj Groups Promotional activities are being taken care of by Rediffusion and TSL (Tata Services Ltd. for

Print Ad. Taj Group has been using high decibel Promotion program to maintain its already renowned image

and also to counter competition. Taj Palace has an effective Promotion Mix. They carry out advertising, sales

promotion, publicity as well as PR activities. Advertising is done maximum through press, magazines and

direct marketing i.e., mailing and personal meetings and minimum advertising is done through TV The

objective the company wishes to achieve through advertising is Image Building. There is no specific period in

the year when they advertise. In fact the company advertises through out the year. Since the company is

advertising through out the year, the Advertising Budget also remains constant or same for a financial year.

But much before getting in to Taj Palace’s Promotional activities, which is combined with Taj Mahal, Delhi

also for building the ‘Taj” brand as a whole, it is desired that a few lines on the Promotional Program of a

hotel as general is listed down for better comprehension. The subsequent section would detail the Planning

and Execution operations required in making the promotional effort fruitful and also it highlights the need of

having a separate promotional strategy for progress and survival.

Promotional Frame work:-

The groundwork involved in advertising planning and decision involves two major factors viz. Internal and

external factors. Internally, situation analysis, the marketing program and the advertising plan are the key

consideration. These three legs of advertising planning concern objectives setting and market identification,

message strategy and tactics, and media strategy and tactics. However, this advertising plan flows from the

overall marketing program which place the advertising plan in the context of the other marketing elements

and, a more general conceptual understanding of how advertising works. The marketing plan itself is

developed in response to a situation analysis, based on research. Once it is developed, the advertising plan is

implemented as advertising campaign, in the context of social and legal constraints and with the involvement

of the advertising agency.

Primary Research: -

The planning and decision - making process begins with a thorough analysis of the situation. Situation

analyses involve an analysis of all important factors operating in a particular situation. For this new research

studies are undertaken keeping in mind the company's history and experience. For advertising planning and

decision-making, the principal thrust of research efforts are based on market analysis or more broadly, this

analysis of consumer motivation and behavior with respect to the product. Situation analysis is based in

conventional wisdom, managerial experience of the creative team's inherent imaginative abilities. But the

current market and environment condition is based adequately on research. Such research comes in from the

company and the advertising agency's research efforts (secondary data source obtained from research

suppliers). Thus situation analysis forms the foundation for a well- developed marketing program and the

cornerstones for developing an advertising strategy.

Planning & Execution: -

The marketing program includes planning, implementation and control functions for the company or in

particular the decision - making unit. The marketing plan include a statement of marketing objectives and in

particular the strategies and tactics to reach those objectives. The marketing objective identified the segments

to be served by Taj Palace and how it goes on to serve them. The needs and wants of consumers on which the

company concentrates are worked out identifying and analyzing them when a marketing plan is prepared.

At Taj Palace, the marketing Manager (who deals with advertising and publicity) spends a considerable time

pinpointing the exact source of poor sales, before deciding that the core problem is adequate or poor

advertising or promotion. The marketing plan thus is based on specific problems or opportunities uncovered

for the service by situation analysis. It serves as a response to those problem or opportunities by allocating the

marketing budget (and the development of specific plans for various components of the marketing mix).

Conceptually, the budget is divided so that the marginal value of an extra budget increment in some for all

components of the mix. The amount of expenditure is shifted to the area that produces the higher incremental

sales.

The Promotional Plan:-

The Promotion Plan is developed once the overall marketing plan has been created. Within the marketing

plan, advertising plans and decision making focus on three crucial areas.

Objectives and target selection

Message strategy and tactics

Media strategy and tactics

Every advertising plan reflects planning decisions and commitments concerning each of the above three major

components. Planning as a process involves the generation and specification of alternatives. Decision making

concerns the choice of the best alternatives. Alternative with respect to objectives and target marketing are

carefully evaluated and specified. The copy alternatives are developed and analyzed with respect to content

(message strategy) and execution. The decisions more at this stage take the form of advertising campaign

adopted in a particular situation. Finally, media alternatives and decision are made on how much money to

spend (media strategy) and where to allocate it (media tactics). In each planning and decision making are

involved.

Target Selection:-

The pivotal aspect of any management plan is the development of operational objectives. An operational

objective provides useful criteria for decision making, generating standards to measure performance and

serving as a meaningful, communication device. This objective helps attitude. Moreover, the advertisement

should) be targeted to a selected group (target market) for which it becomes easier to develop relevant

stimulating copy. Besides this, the company has to develop several campaigns, each directed at different

segments of market.

Message strategy and Tactics:-

The actual development of an advertising campaign involves several district steps. The marketing manager

decides what the advertising is meant to communicate by way of benefits, feeling, brand, personality or action

content. Thus when the content of the campaign has been decided, decisions are made on the best & most

effective ways to communicate the content. One of the first exceptional objectives is the creation of an

advertisement that should gain attention. Advertisements are created that capture and retain the consumer’s

attention because in an age where thousand of advertisements compete for attention and where consumers can

flip television channels with a mere flick of the remote control. The content and tone are eventually translated

into specific advertisement. Throughout the process, decisions are made concerning with different copy

approaches and script. Assessments for 'good' copy are not merely subjective and therefore several kinds of

research- based tests are used, in the laboratory or in the field to enable a creative team to check on the

evolving campaign continually against its objectives.

Media strategy:-

Media strategy concerns about the decisions on how much money to spend on an advertising campaign. It

involves with detailed specification of what the company wants to achieve with advertising and the resources

necessary to accomplish them. It applies to the allocation of an advertising budget across media types and

within each type. The media allocation decision and media planning is done with the help of mathematical

techniques and computer programs. One is the type of vehicle audience of the campaign.

Image Building:-

Advertising is the missing link between Brand attributes and the customer’s perception, between product

features and need fulfillment, between benefits and value. Even if your service has been designed to target

your customer's wants with pinpoint precision, it's only your communication with the customer, in general

and advertising as its most potent form, in particular, that will inform her just how your are trying to

provide value to her. The advertising must deliver unmatched value to the customer. Even the most cogent,

appealing, captivating, entertaining and memorable advertising can still fail to enhance customer value if it

cannot improve the customer's understanding of the need-real or emotional- that the service being

advertised will fulfill her needs . For that your advertising must provide information telling the customer

something she did not know. It must raise your customer’s interest levels. And it must induce a change in her

attitude, which can be translated by additional marketing into a reinforcement of existing behavior or a change

in it, so that she buys your services. Only if these criteria are fulfilled your advertising will raise your service

to the levels of all competing products undifferentiated from one another. "Advertising is what gives the

service its life cycle and creates it into a brand". One of the Jackpots in the search for a value differentiator

for your brand, could be the very experience of the using the service were competing service brands

converge in terms of tangible attributes and benefits, it is often the largely emotional experience of using

the service that can provide additional value to your customer.

The task for the advertising develops and communicate the associations that make for a richer, warmer and

more exciting brand usage experience , transcending a mere objective description of the brand attributes.

When the value that your product delivers is intangible, the real differentiator may lie in the emotional

extension.

Advertising Exposure:-

Considering the splintering of customers into different segments, narrow casting, as opposed to reaching a

broad audience - can ensure that your message reaches by and large only those people that it is intended

for. Once you have found a medium that reaches your key customers you can intensify your communication.

That is the strategy used by Taj Palace’s communication division when media planning was undertaken in

India. Having narrowed its target group down to corporate class and executives who use the hotels services

and foreign tourist, Taj Palace managed to whittle down the original list of 15 publications that appeared to

match the advertisers needs to just four . For, these were the publications whose contents suggested that

the most avid readers would match either of the two customer profiles that Taj Palace was targeting for its

services. In the process not only were media costs lowered, but more crucially the advertiser was assured

that readers would indeed allow the ads to register in their minds, instead of trashing them. This did not come

out of syndicated media research. It came from trying to understand the consumers. For ascertaining that the

target subject’s attention is turned to the advertised message, you must pick a newspaper page, or any other

media that has already put her in a highly receptive frame of mind. Sure, snappy creative work can grab the

attention of page turners, but media planning can add value by selecting events that engage the attention of

their audience - preferably towards a subject that will leave them primed for a message for your product. Taj

has been extensively using Print Media to run its campaigns, and also the Television is used to promote its Ad

Campaign viz. “Your Face”, which is one of the most popular ads in the TV.

Comprehension & Attention:-

The process of comprehension of your communication if achieved by any integration between the customers

existing knowledge and the new knowledge that advertising provides. The contribution of media planning.

The timing of exposure to the advertising can ensure that the information content is lodged in the viewers

mind, allowing her to make the connection with her own knowledge - base.

The penultimate link in the chain, that of attitude or behavior changing acceptance, is forged in the

customer's mind by her cognitive or affective responses - or both - to your advertising. While the former

consists of the thoughts that occur during the comprehension stage, the latter takes the form of feelings

and emotions. Both, accepting separately or in concert, lead to an acceptance or rejection of your ad's claim of

fulfilling her needs. The crucial role of value added media selection here is to provide a vehicle that perfectly

matches which ever of these two responses the advertising tries to elicit. For instance, event offers the

perfect setting for eliciting the affective - or hot- responses while print is better suited for appealing to rational

or cold responses. It is in ensuring the marriage of objectives between advertising and media planning that the

success of communication lies. And as ever newer media planning opportunities burst onto the horizon

Promotion at Taj Palace: -

Advertising is done maximum through Press, Magazines, and Direct Marketing i.e., Mailing and Personal

meetings and minimum advertising is done through the TV. The section of the society or the target segment

for the Taj Palace hotel is the Business and the Elite segment. The hotel gets the maximum business from the

Business class. Advertising efforts made by Taj also involves receiving feedback from the customers through

mailers, direct face to face contact with them and by maintaining a register wherein the customers would give

their suggestions. All this is done to measure the effectiveness of Advertising campaign. The maximum % of

clientele they get is from the Business Class then foreigner and lastly from Holidayers. Ad agencies employed

by the company for designing their Ad campaigns and running the promotional activities are- Rediffusion and

Lintas. There is no specific period in the year when they advertise, in fact the company believes in scheduled

advertising campaign that is through out the year. Since the Advertising is done through out the year the Ad

Budget also remains same through out the year. For instance, the Handi restaurant comes out with different

promotional schemes and is advertised in the Print medium. This is a recurring expenditure to the company all

the scheme might change within a stipulated period of time. The Taj Palace Hotel also promotes its only

discotheque MKOP through out the year. The advertising done is targeted only to certain segment of the

society and it communicates only with customers and very little advertising is done to the rest of the public.

There is no specific appeal on which the advertisements are worked upon.

The advertising task is handled by the Advertising Manager of Taj Palace who reports directly to the

Marketing Manager. Other Managers such as Event Managers, Publicity Managers and Sales Mangers also

work closely as a team to make the promotional efforts more synergetic.

Advertising done by Taj Group of Hotels is at the National and International level. In off seasons the general

theme of the advertisement is informative and during Shoulder seasons, the theme of the ad is conceptual like

‘New Year’ during December.

Sales Promotion is done throughout the year. There are different sales promotional policies for

Rooms Division

Food & Beverages

Minor departments like Laundry etc.

Promotional Tools:-

The various promotional techniques used by the company to promote its products and services are;

During off- season special discounts are given to regular clients and one time guests through different

pricing schemes. They also carry out promotional deals.

The company also organizes Exhibitions, Beauty contests, Food festivals etc.

The Taj Palace also carries out certain Loyalty programme for their patent customers.

The company also extensively make use of Brochures, flight Journals, Jingles on FM, Mailers to

regular guests etc.

Thus to sum up Taj Palace’s Promotional efforts and strategies is something to be talked about and has been

exemplary over the years

4.5 Pricing:-

Pricing is the most important component of the Marketing Mix. The very purpose of is maximization of

revenue, to generate profits and expedite realization of returns on investments. Speaking interns of hotels,

which offers a wide range of products and services, the pricing holds tremendous significance. It is a simple

tag but a complex concept as it reduces intricate needs and wants to just numbers. All the 3P’s of Marketing

actually gets translated into this ‘P’. Price is the ultimate “Transaction border Point” between a corporation

and its customer. An organization myriad costs get converted to Price and customers value perceptions gets

reduced to price and the transition happens. The factors which determine ‘Pricing’ can be broadly classified

into three, viz., Cost, Demand and Competition. When computing the cost of a particular product or service a

series of calculations needs to be carried out. To exemplify how the costing of both product and services are

arrived at, two separate cases would be dealt with below, For instance a guest who walks into a coffee shop

and orders for a cup of coffee ought not to get horrified by the exorbitant bill of Rs. 50 for a standard portion

of 120 ml. The fact is that , the guest pays not just for the generic product ( coffee ) which would cost the

company a mere Rs. 3 per portion, but he is also required to pay for the ambience which is offered to him and

of course the service ( 5 star ) which goes with it. To elucidate further on this front, let us get a little incisive

and find out how much does it costs the hotel to Set.-up a restaurant which caters to 100 pax. The level of

investment chiefly depends on the location of the hotel and how much area is occupied by the restaurant in

question. The next itenery in the costing is what is the amount of money pumped into making the four walls

and the roof of the restaurant into reality. The cost of interior decorations and other aesthetically augmenting

features needs to be added. The cost of designer chairs and tables, chairs and side stations are not too meagre

to be neglected. The amount spent on lighting, both direct and diffused and other ornamental illumanaries too

contribute to the final cost. Last but not the least the cost of maintaining manpower and other variable cost are

of prime importance. Thus setting up a restaurant from the conception of a theme to the final completion and

there after the operation involves an exponential sum. To break-even these high investment within a stipulated

time requires management to charge a much higher figure in relation to the actual food cost. Thus the

allocation of the total set-up cost of the restaurant to each individual product demands complex and intricate

calculations. Finally the amount of Rs. 50a guest paid for his coffee is highly justified by the fact that all those

above revealed cost needs to be realized from the end user for the very survival of the hotel. Another

important cost escalating factor in terms of five star hotels is the levy of sales tax and an additional

expenditure tax of 10% which is otherwise known as tax on tax. A culmination of all these described costs

plus Tax components, plus the Profit margin speaks for the final pricing of the product. Speaking about the

rooms, which is a highly perishable commodity as a room not sold a day would result in the revenue loss for

the day from that particular room. It costs the company on average Rs. 90 lacs for a room. The cost includes

the cost of land, building, Tax given to the DDA, fuel coat, coat of Manpower, life expectancy of the product (

the room as a whole as well as the various giveaways, room supplies, fittings, furniture’s, telephones,

television, mattress, bed sheets, day covers, curtains etc. For example, a single bed sheet costs the company

Rs. 900 and it could be used for only 8-10 times as, that is its perceived life. Thus keeping all these factors in

mind the final cost of single room is arrived at. Also the Rooms Division is the major revenue contributing

department in a hotel. The occupancy of the hotel determines the final costing. For example, if Taj Palace has

to have 100 rooms and only 80 rooms are occupied on a single day. This means the occupancy of the hotel is

80% or stated differently 20 rooms do not contribute a single penny to the hotel on that given day.

4.6 SWOT ANALYSES:

STRENGTH AND OPPORTUNITIES:-

Large conventional banquet facility.

Large room area.

Close to the airport.

Security wise strong.

Charm property, which has goodwill in the market.

Location is good.

Taj Palace is only Hotel in Delhi which is having Mediterranean restaurant.

Strong hold on embassy business.

WEAKNESS AND THREAT:-

Inadequate parking space.

Maurya Shereton location's threat.

With a new flyover coming a better approach to the Hotel Hyatt Regency.

Hotel Hyatt Regency's F&B is more popular.

Radisson only International chain Airport Hotel in Delhi.

Threat from seven star Hotel Hyatt Grand which has recently opened.

4.7 COMPETITVE ANALYSIS:-

Hotels closest competitors are those seeking to satisfy the same customer’s needs and his needs, and similar

offer. In the niche market, therefore it is important to identify closest competitor.

Presently Hotel Taj Palace is receiving the competition from mainly the following Hotels

Hotel Intercontinental.

Hotel Radisson.

Hotel Maurya Shereton.

Hotel Hyatt.

Hotel Imperial.

Hotel Le Meridian.

Among all these Hotels Taj Palace is having a closest competition with Hotel Hyatt, so i am doing a

competitive marketing analysis of Hotel Taj Palace with Hotel Hyatt Regency as follow.

Taj Palace’s Customer Mix is weighed in favor of executives of India while it is balanced between

Indian Executives and Foreign Travelers in Hyatt.

Hyatt being a more global brand than Taj, the choice of Hyatt is higher over Taj among the foreign

travelers. This brand superiority of Hyatt among the foreigners is substantiated by the fact that, the foreign

occupancy in Hyatt is around 70% as compared to Taj Palace’s 50-55 %.

Taj Palace caters more to the Business Executives where as Hyatt mostly targets Foreign Tourists.

Taj Palace, being a part of an Indian Chain of hotels, the Clientele for Taj Palace are those who wishes

to travel to other parts of India, so that they can get the benefits of moving with a chain. Conversely, Hyatt

scores less on this front as it is a Single Property in India at the moment.

Taj Group of Hotels has sufficient spread, and this has infact being one of reason for their preference

for the Taj Group of Hotels for conferences. On the other hand the Hyatt does not have sufficient spread in

India.

In the Pricing front, Hyatt offers more premium rates than Taj Palace and for the same reason Taj

Palace is preferred to Hyatt by the Domestic clientele. Taj Group of Hotels has more flexible rates and

therefore is said to be less expensive for conferences than the Hyatt.

Hyatt offers more attractive and innovative packages to the foreign travelers, although both the hotels

practice ‘Dual Tariff Rates’.

CHAPTER 5

CONCLUSIONS

Hotel Taj Palace:-

Taj Palace is located 10 minutes from the international airport of New Delhi, and 10 minutes from the city

centre, TPH in one of the most posh areas of New Delhi with many Foreign Embassies and High

Commissions surrounding it. The very right kind of place to Target its desired customer i.e., the Upper-upper

class.

TPH has around 700-800 employees working for it day and night providing the ideal services that are required

in the hotel industry.

TPH’s promotional activities include print media like news papers, magazines etc. Like Hyatt, TPH too have a

very well maintained inventory of its regular guests. They send New Year wishing cards, invitation on

different celebrations, etc to their guests.

TPH in its line have around 421 guest rooms, very well decorated. There are other services and facilities like

free safe deposit lockers, express laundry/dry clearing, Doctor on call, 3 meeting rooms, laptops on hire, night

club, car hire service, travel assistance, currency exchange, conference aids including simultaneous

translation in 5 languages etc.

The decor of the TPH is amalgamation of Indian traditional and modern furniture’s. It has beautiful paintings

of every type which augment the ambiance of hotel. The hotel has 6 Restaurants serving Indian, authentic

Sichuan cuisine and “The Orient Express” serving the European cuisine.

The hotel also boasts of a private theater. The Taj Group of Hotels is India’s largest hotels chain offering 48

hotels in 34 locations across the subcontinents

KEY ISSUES:-

Taj Palace’s Customer Mix is weighed in favor of Indian Executives.

Foreign occupancy in Taj Palace is 50 to 55 %.

Taj Palace caters more to the Business Executives.

Taj Palace, being a part of an Indian Chain of hotels, the Clientele for Taj Palace are those who wish to

travel to other parts of India, so that they can get the benefits of moving with chain

Taj Group of Hotels has a sufficient spread, and this has infact being one of reason for their

preference for the Taj Group of Hotel for conference.

Taj Group of Hotels has more flexible rates and therefore is said to be less expensive.

Taj Palace use to practice "dual tariff" rates

CHAPTER 6

RECOMMENDATIONS

Strategies Taj Palace can adopt to benchmark its product against competitor

Targeting the delegation and dignitaries of different countries.

Providing packages and targeting foreign tourist who are the extensive user of suites by value

addition.

Finalizing people with the product we have and the product that is available in the market.

Aggressive selling and increasing the cliental base through loyalty programs like Gold passport and

Private Line (various point accumulated against the stay of customer for which he/she is rewarded various

discounts, gifts, stay free for various nights etc).

Upsetting of the rooms and keeping the track of the events taking place in Delhi.

Inviting major decision maker to corporate events and enroll them in some rewarding programs.

Using of media, embassies and chamber of commerce to propagate the product.

Carrying on sales blitzing in other metros.

Relationship marketing with the in-house guests.

Telemarketing can too be followed religiously.

Same monthly / fortnightly magazine should be introduced which keeps the clients informed of

various happenings pertaining to the Hotel.

The "off peak discounts" should be given from month of May to August

To retain the loyalty of customers personal touch and customer satisfaction should be priority and

therefore offer them greater personalize service and take it to higher level than at present.

CHAPTER 7

LIMITATIONS OF THE STUDY

BIBLIOGRAPHY

Kotler, P. ‘Marketing Management’.

In house Journal.

In house magazine.

Business Today.

Business World.

Economic Times

http:/www.tajhotels.com/

http://en.wikipedia.org/wiki/taj_hotels_resorts_and_palaces

http://en.wikipedia.org/marketing mix