A SUMMER TRAINING REPORT IN

7PS OF RESTAURANTS IN INDIA

SUMMER TRAINING REPORT ON

PROJECT TITLE

“Submitted in the Partial Fulfillment for the Requirement of

Bachelor’s of Business Administration”

(BBA)

Submitted to: Submitted by:

Project Guide (Name) Student Name:

Roll No.

Batch

Jagannath International Management School

Kalkaji, New Delhi

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report. I am grateful to all of them for their

time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all

those who have contributed in completing this project. First of all, I would like to

send my sincere thanks to MR. ______________ for his helpful hand in the

completion of my project.

NAME:

DATE:

EXECUTIVE SUMMARY

The diverse culinary habits, wide range of cuisines and the diverse cooking techniques are

some of the main factors behind the growth of restaurants in India. With the market

liberalization policies undertaken by the government, India has also become a consumer

market with a huge customer base. This has provided a fillip to the restaurant industry in the

country. With the high standard of living and the change in the lifestyle of the people, more

and more consumers are also flocking various restaurants. Recent surveys have shown that

there has been a growing trend among the Indians to taste various types of gastronomical

delights. This has also led to the growth of restaurants which serve regional and international

delicacies. The growth of the tourism industry has also been a positive factor behind the

growth of restaurants in India. With more and more domestic and foreign tourists going to the

popular tourist destination, it has been a boon for the restaurants. According to recent

surveys, India has become one the top five destinations among the 167 popular tourist

destinations. With more and more foreign tourists coming in, the restaurant industry is

expected to grow at a rapid pace and more categories of eating outlets will come up.

TABLE OF CONTENTS

Description Page No.Acknowledgement (i) (i)ContentsList of tablesList of figuresList of symbols, Abbreviations or Nomenclature (optional)Executive SummaryCertificate from Organization, faculty and declaration from student1. Introduction to topica) Origin & development of the industry.b) Growth, present & future of industry.c) Defining the concept. 1d) objective of the project2. Company Profilea) Originb) Growth & present strategyc) Products & Servicesd) Market profile.3. Research Methodology4. Analysis & Interpretation5. Findings & Inferences6. Recommendations and ConclusionAppendicesBibliography

CHAPTER I

INTRODUCTION TO THE TOPIC

The diverse culinary habits, wide range of cuisines and the diverse cooking techniques are

some of the main factors behind the growth of restaurants in India. With the market

liberalization policies undertaken by the government, India has also become a consumer

market with a huge customer base. This has provided a fillip to the restaurant industry in the

country. With the high standard of living and the change in the lifestyle of the people, more

and more consumers are also flocking various restaurants. Recent surveys have shown that

there has been a growing trend among the Indians to taste various types of gastronomical

delights. This has also led to the growth of restaurants which serve regional and international

delicacies.

The growth of the tourism industry has also been a positive factor behind the growth of

restaurants in India. With more and more domestic and foreign tourists going to the popular

tourist destination, it has been a boon for the restaurants. According to recent surveys, India

has become one the top five destinations among the 167 popular tourist destinations. With

more and more foreign tourists coming in, the restaurant industry is expected to grow at a

rapid pace and more categories of eating outlets will come up.

According to recent surveys, the rate of growth of the restaurant industry in India is expected

to be around 4.5 % on an average. A significant number of the workforce in the country is

also engaged in the restaurant industry. According to recent surveys, by the end of the year

2012, the overall restaurant industry in the world will employ around 13.3 million people, of

which India will have a significant share. However, the main challenge is to enhance the

market growth of the industry. Today, the Indian restaurant industry is mainly based in the

urban areas the tourist destinations. Efforts need to be made to increase the market in the

rural areas as well. There are restaurants in the rural areas but most of them fall under the

unorganized sector. A systematic approach is required to increase the target audience in the

rural sector.

With the open market and liberalization policies, more and more international restaurant

chains are also opening their branches in various cities of the country. This has increased the

rate of foreign investments in the country having a favorable effect on the overall economy of

the country. The foreign restaurants are setting up bases to cater to the vast consumer market

in the country.

The growth of the restaurants in India has directly led to the growth of fast food eating outlets

in the country. The Indian youth of today is very much inclined towards fast food and this has

become a major factor towards the growth of these types of restaurants.

The future of the restaurant industry looks bright. With the increase in demand, the consumer

patterns, the profit of this industry will also significantly rise. In fact, the restaurant industry

has become a popular career option for the youngsters of India. More and more people are

opting to work in different segments of this industry to start a highly successful career. New

courses and study programs based on various sectors of the restaurant and food processing

industries are also coming up to cater to students. The market for any product is normally

made up of several segments. A ‘market’ after all is the aggregate of consumers of a given

product. And, consumer (the end user), who makes a market, are of varying characteristics

and buying behavior. There are different factors contributing for varying mind set of

consumers. It is thus natural that many differing segments occur within a market. In order to

capture this heterogeneous market for any product, marketers usually divide or disintegrate

the market into a number of sub-markets/segments and the process is known as market

segmentation.

Thus we can say that market segmentation is the segmentation of markets into homogenous

groups of customers, each of them reacting differently to promotion, communication, pricing

and other variables of the marketing mix. Market segments should be formed in that way that

difference between buyers within each segment is as small as possible. Thus, every segment

can be addressed with an individually targeted marketing mix. The importance of market

segmentation results from the fact that the buyers of a product or a service are no

homogenous group. Actually, every buyer has individual needs, preferences, resources and

behaviors. Since it is virtually impossible to cater for every customer’s individual

characteristics, marketers group customers to market segments by variables they have in

common. These common characteristics allow developing a standardized marketing mix for

all customers in this segment.  Through segmentation, the marketer can look at the

differences among the customer groups and decide on appropriate strategies/offers for each

group. This is precisely why some marketing gurus/experts have described segmentation as a

strategy of dividing the markets for conquering them.

MARKETING STRATEGY AND MARKET SEGMENTATION: - When it comes to

marketing strategies, most people spontaneously think about the 4P (Product, Price, Place,

Promotion) – maybe extended by three more Ps for marketing services (People, Processes,

Physical Evidence).

Market segmentation and the identification of target markets, however, are an important

element of each marketing strategy. They are the basis for determining any particular

marketing mix. Basic steps in marketing strategy are as follows:-

Strategic management process comprises four phases: environmental scanning, strategy

formulation, strategy implementation and strategy evaluation and control. Strategic

management is an ongoing process to develop and revise future-oriented strategies that allow

an organization to achieve its objectives, considering its capabilities, constraints, and the

environment in which it operates. Once the environmental scanning is done the next step is

strategy formulation. Formulation produces a clear set of recommendations, with supporting

justification, that revise as necessary the mission and objectives of the organization, and

Market Segmentation1.Identification of customers' needs and market segments.2.Develop profiles of resulting market segments.

Identification of Target Markets

3.Evaluation of attractivity of each segment.4.Selection of target segments.

Positioning5. Identification of differential advantages in each segment.6. Development and selection of positioning concepts.

Marketing Planning7. Development of a marketing mix for each segment according to the chosen position.

supply the strategies for accomplishing them. In formulation, we are trying to modify the

current objectives and strategies in ways to make the organization more successful. This

includes trying to create "sustainable" competitive advantages -- although most competitive

advantages are eroded steadily by the efforts of competitors.

PORTER’S GENERIC BUSINESS STRATEGIES

Cost Leadership Differentiation

Focussed cost

Leadership

Focused

Differentiation

LOW COST LEADERSHIP STRATEGIES

Low cost leadership strategies are based on a firm’s ability to offer a product or service at a

lower cost than its rivals. When a firm is able to build a substantial cost advantage over other

competitors it can pass on its benefits to customers and gain a large market share. This

requires being the overall low-cost provider of the products or services (e.g., Costco, among

retail stores, and Hyundai, among automobile manufacturers). Implementing this strategy

successfully requires continual, exceptional efforts to reduce costs without excluding product

features and services that buyers consider essential. It also requires achieving cost

advantages in ways that are hard for competitors to copy or match. Some conditions that tend

to make this strategy an attractive choice are:

The industry's product is much the same from seller to seller

The marketplace is dominated by price competition, with highly price-sensitive

buyers

There are few ways to achieve product differentiation that have much value to buyers

Most buyers use product in same ways -- common user requirements

Switching costs for buyers are low

Buyers are large and have significant bargaining power

DIFFERENTIATION STRATEGIES

When firm appeal to a broad cross-section of the market through offering differentiating

features that make customers willing to pay premium prices, e.g., superior technology,

quality, prestige, special features, service, convenience (examples are Nordstrom and Lexus).

Success with this type of strategy requires differentiation features that are hard or expensive

for competitors to duplicate. Sustainable differentiation usually comes from advantages in

core competencies, unique company resources or capabilities, and superior management of

value chain activities. Some conditions that tend to favor differentiation strategies are:

There are multiple ways to differentiate the product/service that buyers think have

substantial value

Buyers have different needs or uses of the product/service

Product innovations and technological change are rapid and competition emphasizes

the latest product features

Not many rivals are following a similar differentiation strategy

FOCUS STRATEGIES

Focus strategies aim to sell good or services to narrow or specific target market, niche or

segment. Focus builds competitive advantage through high specialization and concentration

of resources in a given niche. Firms can build focus in one of the two ways. Focussed Cost

Leadership and Focussed Differentiation.

Focussed cost Leadership: A market niche strategy, concentrating on a narrow customer

segment and competing with lowest prices, which, again, requires having lower cost structure

than competitors

Focused Differentiation: a second market niche strategy, concentrating on a narrow

customer segment and competing through differentiating features e.g., a high-fashion

women's clothing boutique

Some conditions that tend to favor focus (either cost or differentiation focus) are:

The business is new and/or has modest resources

The company lacks the capability to go after a wider part of the total market

Buyers' needs or uses of the item are diverse; there are many different niches and

segments in the industry

Buyer segments differ widely in size, growth rate, profitability, and intensity in the

five competitive forces, making some segments more attractive than others

Industry leaders don't see the niche as crucial to their own success

Few or no other rivals are attempting to specialize in the same target segment

GLOBAL STRATEGIES

Developing strategies on a global scale is not an easy task. Managers have to learn other

languages, understand host country laws, deal with volatile currencies, face political

uncertainties, and redesign products to suit different customer needs and expectations.

GLOBAL EXPANSION STRATEGIES

A firm can choose four types of strategies - Global Strategy, International Strategy,

Transnational Strategy and Multidomestic Strategy

Two sets of factors affect firm’s decision to adopt international strategies: extent of cost

pressures and the extent of pressures for local responsiveness. Cost pressures denote the

demand on a firm to minimize its unit costs. Pressures for local responsiveness makes a firm

tailor its strategies to respond to national-level differences in terms of variables like customer

preferences and tastes, government policies, or business practices Firms adopt an

international strategy when they create value by transferring products and services to

foreign markets where these products and services are not available. This is a simple strategy

in the sense that an international firm, by maintaining a tight control over its overseas

operations, offers standardized products and services in different countries with little or no

differentiation. Most international companies, such as, Coca Cola, McDonald, IBM, Kellogg,

Proctor and Gamble, Microsoft, and several others adopt this strategy for the different

countries they operate in.

Firms adopt a multidomestic strategy when they try to achieve a high level of local

responsiveness by matching their products and services offerings to the national conditions

operating in the countries they operate in. In this case, the multidomestic firm attempts to

extensively customize their products and services according to the local conditions operating

in the different countries. Obviously, this leads to a high-cost structure as functions, such as,

research and development, production, and marketing have to be duplicated.

Pressure for local responsiveness

Firms adopt a global strategy when they rely on a low-cost approach based on reaping the

benefits of experience-curve effects and location economies and offering standardized

products and services across different countries. The global firm tries to focus intensively on

a low-cost structure by leveraging their expertise in providing certain products and services,

and concentrating the production of these standardized products and services at a few

favorable locations around the world. These products and services are offered in an

undifferentiated manner in all countries the global firm operates in, usually at competitive

prices. Firms adopt a transnational strategy when they adopt a combined approach of low-

cost and high local responsiveness simultaneously for their products and services.

MARKET ENTRY STRATEGIES

Once the MNC decides to target a particular country, it has to decide the best mode of entry.

Mode of entry means the manner in which the firm would commence its international

operations. There are several entry modes, each with their own sets of advantages and

disadvantages. A firm would have to decide which mode suits its circumstances best before

it could be adopted.

The different entry modes are:

(1) Export entry modes: Under these modes, the firm produces in the home country and

markets in the overseas markets.

Direct exports do not involve home-country intermediaries and marketing is done

either through direct agent/distributor or through direct branch/subsidiary in the

overseas markets.

Indirect exports involving intermediaries in the home country and who are responsible

for exporting the firm’s products.

(2) Contractual entry modes: These modes involve non-equity associations between an

international company and a company or any other legal entity in the overseas markets.

Licensing is an arrangement where the international company transfers knowledge,

technology, patent, and so on for a limited period of time to an overseas entity in

return for some form of payment, usually a royalty payment.

Franchising: Franchising involves the right to use a business format, usually a brand

name, in the overseas market in return for the franchise receiving some form of

payment.

Other forms of contractual arrangements, such as, technical agreements (for

technology transfers), service contracts (for technical support or expertise provision),

contract manufacturing, production sharing, turnkey operations, build-operate-transfer

(BOT) arrangements, etc.

(3) Investment entry modes: These modes involve ownership of production units in the

overseas market based on some form of equity investment of direct foreign investment.

Joint venture and strategic alliances involve a cooperative partnership between two or

more firms with financial interests as the basis of cooperation, (These entry options

have been discussed earlier under the heading of cooperative strategies.)

Independent ventures or wholly-owned subsidiaries are modes in which the parent

international company holds 100 percent equity and is in full control. Such facilities

may be created either through a new venture known as a Greenfield venture or

acquired through takeover strategies.

STRATEGIC MANAGEMENT

STRATEGIC ANALYSIS AND CHOICE

Strategic Analysis and Choice seeks to determine alternative courses of action that could

enable the firm to achieve its mission and objectives. Strategic Analysis and Choice tries to

find out answers to three basic questions:

How effective has the existing strategy been?

How effective will that strategy be in future?

What will be the effectiveness of selected alternative strategy in future?

Portfolio Analysis

Portfolio Analysis is analyzing elements of a firm's product mix to determine the optimum

allocation of its resources. It is used in Multi Business Corporation to develop corporate

strategy. The top management views its product lines and business units as a series of

investment from which it expects a return. It deals with how individual product lines and

business units can gain competitive advantage in the marketplace by using competitive and

cooperative strategies. It helps the company to answer the following questions:

How much of our time and money should we spend on our best products to ensure

that they continue to be successful?

How much of our time and money should we spend developing new costly products,

most of which will never be successful?

The two best-known portfolio planning methods are the Boston Consulting Group Portfolio

Matrix and the McKinsey / General Electric Matrix.

BCG GROWTH-SHARE MATRIX

It is based on the observation that a company's business units can be classified into four

categories based on combinations of market growth and market share relative to the largest

competitor, hence the name "growth-share". The growth-share matrix thus maps the business

unit positions within these two important determinants of profitability The relative market

share serves as a measure of SBU strength in the market. The market growth rate provides a

measure of market attractiveness. Each of the corporation’s product lines or business units is

plotted on the matrix according to both the growth rate of the industry in which it competes

and its relative market share

The Boston Consulting Group Box ("BCG Box")

Stars - Stars are high growth businesses or products competing in markets where they are

relatively strong compared with the competition. They are typically at the peak of their

product life cycle. Stars generate large amounts of cash because of their strong relative

market share, but also consume large amounts of cash because of their high growth rate.

Often they need heavy investment to sustain their growth. Eventually their growth will slow

and will become cash cows.

Cash Cows - Cash cows are low-growth businesses or products with a relatively high market

share. These are mature, successful businesses with relatively little need for investment. They

typically bring in far more money than is needed to maintain their market share. In this

decline stage of their life cycle, these products are “milked” for cash that will be invested in

new question marks.

Question marks - Question marks are businesses or products with low market share but

which operate in higher growth markets. Question marks are growing rapidly and thus

consume large amounts of cash, but because they have low market shares they do not

generate much cash. A question mark (also known as a "problem child") has the potential to

gain market share and become a star, and eventually a cash cow when the market growth

slows. If the question mark does not succeed in becoming the market leader, then after years

of cash consumption it will degenerate into a dog when the market growth declines.

Management have to think hard about "question marks" - which ones should they invest in?

Which ones should they allow to fail or shrink?

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor

consume a large amount of cash. However, dogs are cash traps because of the money tied up

in a business that has little potential. Such businesses are candidates for divestiture.

 The Boston Consulting Group Portfolio Matrix simplicity is its strength - the relative

positions of the firm's entire business portfolio can be displayed in a single diagram. Its

limitation is market growth rate is only one factor in industry attractiveness, and relative

market share is only one factor in competitive advantage. The growth-share matrix overlooks

many other factors in these two important determinants of profitability

GE BUSINESS SCREEN

It is the business portfolio framework developed by General Electric with the help of

McKinsey and Company, a consulting firm. GE Business Screen includes nine cells based on

long-term industry attractiveness and business strength/competitive position

Factors that Affect Market Attractiveness: There are several factors which can help

determine attractiveness. These are listed below:

- Market Size

- Market growth

- Market profitability

- Pricing trends

- Competitive intensity / rivalry

- Overall risk of returns in the industry

- Opportunity to differentiate products and services

- Segmentation

- Distribution structure (e.g. retail, direct, wholesale

Factors that Affect Competitive Strength: There are several factors which can help

determine the business unit strength. These are listed below:

- Strength of assets and competencies

- Relative brand strength

- Market share

- Customer loyalty

- Relative cost position (cost structure compared with competitors)

- Distribution strength

- Record of technological or other innovation

- Access to financial and other investment resources

Plotting the Information Each business unit can be portrayed as a circle plotted on the

matrix, with the information conveyed as follows:

Market size is represented by the size of the circle.

Market share is shown by using the circle as a pie chart.

The expected future position of the circle is portrayed by means of an arrow.

The green zone indicates go ahead. It includes the strong SBU’s in which the company

should invest and grow. They go for Expansion Strategies

The yellow zone indicates wait and see. It includes SBS’s that are medium in overall

attractiveness. They should maintain their level of investments. They go for Stability

Strategies

The red zone indicates stop. It includes SBU’s that are low in overall attractiveness. They go

for Retrenchment Strategies (Divestment and Liquidation).

The shading of the above circle indicates a 40% market share for the strategic business unit.

The arrow in the upward left direction indicates that the business unit is projected to gain

strength relative to competitors, and that the business unit is in an industry that is projected to

become more attractive. The tip of the arrow indicates the future position of the center point

of the circle.

Six-step approach for the implementation of the McKinsey Matrix

1. Specify drivers of each dimension. The corporation must carefully determine those

factors that are important to its overall strategy.

2. Determine the weight of each driver. The corporation must assign relative importance

weights to the drivers.

3. Score the SBU's on each driver.

4. Multiply weights and scores for each SBU.

5. View resulting graph and interpret it.

6. Perform a review/sensitivity analysis. Make use of adjusted other weights and scores

(there may be no consensus).

THREE LEVELS OF STRATEGY FORMULATION

The following three aspects or levels of strategy formulation, each with a different focus,

need to be dealt with in the formulation phase of strategic management. The three sets of

recommendations must be internally consistent and fit together in a mutually supportive

manner that forms an integrated hierarchy of strategy, in the order given.

CHAPTER II

COMPANY PROFILE

INTRODUCTION TO THE COMPANY

HISTORY

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. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company

opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. 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 Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri

Lanka, Africa and the Middle East.

THE TAJ MAHAL HOTEL, NEW DELHI

One of the most distinguished addresses in the national capital, The Taj Mahal Hotel is

located in the exclusive residential area of Lutyens’ Delhi, close to the seat of government.

Reflecting the heritage of Mughal Delhi, this hotel offers graceful architecture with modern

facilities.

Central to The Taj Mahal Hotel’s prominence is its old-world grace and charm, blended

effortlessly with contemporary comforts and amenities. In its unique blend of warmth and

welcome and assiduous attention to service, The Taj Mahal Hotel is a true ambassador of the

Taj hospitality experience.

ORGANIZATION STRCUTURE

CORPORATE HOLDING STRUCTURE

Corporate Information

Domestic Subsidiaries

1. Tifco Holdings Limited

2. KTC Hotels Limited

3. United Hotels Limited

4. Taj SATS Air Catering Limited

5. Roots Corporation Limited

6. Residency Foods & Beverages Limited

International Subsidiaries

1. International Hotel Management Services Inc.

2. Taj International Hotels (H.K.) Limited

3. St. James Court Hotel Limited

4. Chieftain Corporation NV

5. IHOCO BV

6. Taj International Hotels Limited

7. Samsara Properties Limited

8. IHMS (Australia) Pty Limited

9. Apex Hotel Management Services Pte. Ltd.

Associates

Domestic

1. Ice & Cold Storage Company Limited

2. Benares Hotels Limited

3. Taj Air Limited

4. Piem Hotels Limited

5. Taj Trade and Transport Limited

6. Taj Enterprises Limited

7. Taida Trading and Industries Limited

8. Inditravel Private Limited

9. Oriental Hotels Limited

10. Taj Madurai Limited

11. Lands End Properties Private Limited

12. Luthria & Lalchandani Hotel & Properties Pvt. Ltd.

13. Skydeck Properties and Developers Private Limited

14. Sheena Investments Private Limited

15. ELEL Hotels & Investments Limited

16. Kaveri Retreats & Resorts Limited

17. Prestige Garden Resorts Private Limited

International

1. Lanka Island Resorts Limited

2. TAL Lanka Hotels Plc

3. BAHC 1 Pte Limited

4. BAHC 2 Pte Limited

5. Cullen Oakes Corp

6. Business Jets Pte Limited

7. Bjets Asset Holdings Pte Limited

8. Bjets Pte Limited

9. Platinum Leasing Limited

10. Business Jets (India)Pvt. Ltd

11. Taj Asia (Thailand) Ltd.

Joint Ventures

Domestic

1. Taj Madras Flight Kitchen Pvt. Ltd.

2. Taj Karnataka Hotels & Resorts Ltd.

3. Taj Kerala Hotels & Resorts Ltd.

4. Taj GVK Hotels & Resorts Limited

5. Taj Safaris Ltd.

International

1. TAL Hotels and Resorts Limited

2. IHMS Hotels (SA) (Proprietary) Limited

CURRENT SALES

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. Which meant that though

the heads of these three divisions sat at head office, their ‘territory’ is scattered

geographically, according to which type of hotel they look after.

Segmentation

Strategy

A higher emphasis was placed on the business segment as the profits are higher (this market

being less price-sensitive as compared to the luxury segment). There was a proliferation of

the Taj Presidency hotels not only in new cities, but also smaller towns.

The group also kept looking at new opportunities. ‘The action plan is more opportunities,

adding to and complementing the brand,’ says Krishnakumar.

More changes

There were other changes. Consolidation. Unprofitable ventures were hived off. The sales

and marketing functions were separated. The HRD department modernized, with an emphasis

on performance and career and succession planning. The organization was made to flatter and

more compact. Moreover, a continual benchmarking against international standards was

made part and parcel of the culture of the Taj.

Major renovation

By the mid 1990’s, renovation was in full swing. Units across the country were refurbished. It

meant ripping out entire floors. Rooms were revamped, business centers rebuilt. More than a

hundred million dollars were reportedly spent for renovation – just in the lifestyle (luxury

segment)! Since the business segment was slated to be become big (and those using it were

likely to be non-traditionalists), the Taj went ostentatious with its new business floors. It

meant putting in optic fiber cabling, remote control systems and giving the business guy a

lounge where he could relax and even have breakfast. It included a min-business centre.

In the process, some mistakes did happen. For instance it was thought a mini-gym on the

floor would be a convenience. But this had to be dropped after a few years due to disuse.

Initially, fax machines ere installed in the room. They had to go with the advent of the

internet and laptops. Other innovations have happened too. It was found that telephone usage

was dropping because of the advent of mobile phones. Not only were mobiles provided on

hire, the Taj also dropped communication charges by 33 per cent.

Advertising

It was only when the product was ready, was a major advertising campaign developed.

Earlier, advertising had been restricted to the major feeder markets: the US, UK, Germany,

Singapore and Hong Kong. And the advertising emphasized the hardware aspect of the hotel.

The new campaign developed a specific brand identity for the hotel.

Though the Taj had high unaided recall, it launched a corporate campaign to reinforce this

new identity. The ad (made by Rediffusion) shows the enigmatic woman who stands for both

hospitality and efficiency. The identity was developed after extensive research on the

consumer’s attitudes towards the Taj. Over 60 in-depth interviews were conducted by client

and agency. The parameters? Not quantity, but quality. The things done right. The quality of

check-in, the smile, the greeting or the welcome drink. The insights gathered were analyzed

and a clear slot, which the Taj could occupy when global competition arrived, emerged. This

was translated into creating a distinct personality of the Taj as caring, efficient and enigmatic.

The line went: ‘She is the Taj,’ The base line was ‘Nobody cares as much.’

Success

Other hotels’ room occupancies plunged to as low as 37 % during the recession and average

room occupancy rates across all hotels were approximately 50 per cent. The Taj maintained a

far higher average and continued to grow and expand. Slowly the hotel became more

profitable than it had ever been. The reason is clear. It never slept.

PRODUCT MIX

KEY INITIATIVES

Update on Key Initiatives

Growth

In the coming years, IHCL will see growth through the addition of 80 Luxury Residences at

the Taj Wellington Mews, Mumbai, as well as rooms added at Taj Lands End, Mumbai and

Taj West End, Bangalore. The Taj Lands End is a hotel built with a capacity of 500 rooms

with an additional 50,000 sq. ft. approximately that is yet to be built. We will aim to reach

this capacity over the next two years, which will include adding rooms and developing high-

end offices or retail space created in the new 50, 000 sq. ft. block. Taj West End will have

approximately 175 rooms added to it over the next two years. IHCL continues to pursue

management contracts in India as well as in South and South East Asia. Associate companies

viz. Taj GVK Hotels & Resorts Limited and Oriental Hotels Limited are also in the process

of setting up properties in Chandigarh and Bangalore respectively, which would add to the

properties under the Taj group. IHCL has secured two management contracts for a high end

luxury resort and an upmarket resort in Kovalam, Kerala. Both the hotels are under

construction and will open in the current financial year.

Spas

IHCL successfully launched the Taj Spa in the Taj Mahal Palace & Tower, Mumbai and is in

the process of launching Spas in a number of hotels. These will be a combination of Day and

Destination Spas of international standards, with a unique treatment menu developed by the

Taj. They will be the first and one of a kind - Indian Spa. Spas are being planned in Taj

Wellington Mews, Mumbai and Taj Lands End, Mumbai. The Spas being rolled out in the

key properties will be state-of-the-art, having areas in excess of 10,000-12,000 sq. feet.

Ginger Hotels

IHCL is in the process of rolling out its Smart Basics hotels, under the brand name "Ginger".

The first prototype has been launched in June 2004 in Bangalore, with roll out being planned

in a number of cities and towns subsequently. These hotels will cater to the economy or

'value for money' segment and being predominantly domestic clientele based, are far less

prone to fluctuations than the luxury and upscale segments. In the long run, this segment will

help in derisking the current revenue stream of the company.

Brand Architecture

IHCL is in the process of clearly defining the product and service standards in order to have

consistency across properties under each brand. This will help in further enhancing the brand

value of Taj.

Product Upgradation

IHCL continues to invest in renovation and relaunch of key / brand defining properties. In the

last financial year IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj

West End, Bangalore The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh

Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea Lounge

and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was relaunched, while a new

Vietnamese restaurant 'Blue Ginger' was opened in Taj West End, Bangalore The renovated

products and the new outlets were very well received in the market. The renovated rooms at

Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore have emerged as the price

leaders in the respective cities. In the coming year IHCL intends to open a number of F&B

outlets by celebrity Chefs with international cuisine. In the upscale segment, the properties

are being relaunched to be at par with international level upscale hotels. The rooms at Taj

President, Mumbai, Taj Residency, Bangalore, Jai Mahal Palace, Jaipur and Taj Holiday

Village, Goa are being renovated and relaunched.

Service Excellence

In the last few years IHCL has undertaken a number of steps to significantly enhance service

levels to be in line with the best in class. IHCL has constantly benchmarked itself with the

key international luxury chains and strived to raise the bar. IHCL's service excellence

philosophy, has at its core, delivery through our people, processes and culture.

IHCL has taken a number of steps to provide highly personalized service to the discerning

customer, including butler services in its luxury properties. In order to take care of the entire

stay experience, IHCL has also completely revamped its Concierge services. The Centers of

Excellence have been strengthened considerably to train staff to meet the exacting standards

of a truly luxury hotel. Tata Business Excellence Model (TBEM) will play a significant role

in raising the bar of service provided. The TBEM has been rolled out in all the three hotel

divisions and will be rolled out to the international properties also.

Tata Business Excellence Model (TBEM)

In order to intensify the drive for Business Excellence, IHCL conducted Internal Assessments

based on the Tata Business Excellence Model for Luxury, Leisure, Business SBUs as well as

for Taj SATS Air Catering Limited. The Luxury Division has also applied for External

Assessment, which is to be facilitated by Tata Quality Management Services.

Based on the External Assessment (2003) feedback report and the feedback from the Internal

Assessment, action plans to improve processes which finally impact the overall

organizational effectiveness, have been drawn out and worked upon.

Some of the key initiatives deployed across key hotels of the Taj group in the year 2003-04

are:

Raising the bar in terms of product & service quality: In order to raise the standards of

service & product quality to international levels, we have re-introduced Richey Audits. We

are thus able to benchmark & gauge our performance against international luxury and super-

luxury hotels and upgrade our standards.

Introduction of international best practices: Taj group is using the expertise of

international consultants and domain experts who work with us in different functional and

operational areas in order to introduce world-class practices. We have launched the concierge

service, butler service, and car hire service in key hotels of the group. This has resulted in a

steep change in service levels.

Rollout of the Customer Feedback System (CFS): The CFS was launched in November

2003 and has taken root in 30 hotels across Taj group. It is the primary and sole customer

feedback system of the group. Till date, the system has clocked around 12,000 pieces of

customer feedback. The feedback from all sources gets recorded and aggregated and analyzed

to improve the service quality in areas of concern at each of the hotels. Feedback is not

restricted to only guest difficulties (complaints) but also consists of compliments and

suggestions. The feedback would ultimately be used for product planning as well.

Reinforcement of the use of the Balanced Scorecard: The use of the Balanced Scorecard

(BSC) has been strengthened across the organization. It is used as the key strategy

deployment tool. The key strategic objectives are captured in the BSC and cascaded across

the units & departments. All the SBU scorecards are aligned with the corporate scorecard, as

well as the HR & Sales & Marketing scorecard.

Corporate Restructuring

In order to make IHCL leaner and carry brand standards across domestic and international

properties, the International division was merged with the Luxury, Business and Leisure

divisions, so as to make the corporate setup leaner and more agile. We also continue to

restructure our balance sheet and reduce the number of under performing / non-performing

assets. Such restructuring, in the previous year, resulted in a net inflow of Rs. 37.25 crores. In

the last financial year, IHCL sold the Gateway Riverview Lodge, Chiplun, which did not

meet brand standards. IHCL would continue to convert to cash / productive use the idle and

non-performing assets as well as restructure under performing properties.

TOP

IHCL's operational improvement programme, TOP (Total Overdrive for Profits), being

managed jointly with McKinsey & Company, has made significant progress since its

inception in July 2002. The programme has identified improvement ideas across areas like

Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar, In-room dining, Chambers and

several other operational areas. In addition, the TOP team has been working with a cross

functional team to develop a strategy for maximising revenues from key corporate accounts.

The focus of the TOP team for the next few months will be in ensuring that all identified

improvement ideas are fully implemented. In addition, the team will continue to focus on cost

areas and address new areas like restaurant revenues and capital expenditures.

IT initiatives

From a situation in 1999 where there was limited IT application, Taj group has today

achieved domestic leadership in deploying IT to leverage its competencies and is rapidly

approaching benchmarks set by international highly regarded chains. The first three phases of

implementation of the IT strategy included putting in place the physical infrastructure across

the Taj Group and getting customer relationship applications to ride on this physical

infrastructure, with a view to enhancing customer services through customer information and

recognition systems and better inventory management.

Some of the key IT initiatives being under taken by IHCL are Orion, a comprehensive back

office system, implementing Revenue Management system, Interactive TV Systems and

National Call Center.

MARKET POSITION

Some brands die a quiet death, others are swallowed by bigger, more powerful brands. Some,

however, withstand the test of time. Like the Taj. Our Taj. However, the hotel has faced some

rough times. The Indian Hotel Industry went through a recession in the nineties but the Taj

survived it better than most hotels. Their investment plans continued unabated, share prices

remained buoyant and dividend payment kept up. How did the Taj manage to achieve this?

Let’s go back to the beginning

The Taj was built at a time when Indians were not allowed entry into most of the prestigious

hotels and clubs in British ruled India. Legend has it that this was one of the reasons why

Jamshetji Nusserwanji Tata, the first Indian industrialist built India’s first luxury hotel. He

went ahead with the project although he was busy with plans to industrialise India.

The first Taj Hotel, the flagship of the Group was born in 1903 and stood alone for almost

half a century. Initially it was smooth sailing, even though the original hotel was conceived

and built when the hotel business was not even considered an industry.

Right from the beginning, the Taj stood for class and comfort. It was a place where the

viceroys of the Empire arrived and departed amidst scenes of splendour. Scenes which were

typical of the Raj. In fact, it soon became one of the wonders of the Orient. Singapore’s

Raffles or Hong Kong’s Peninsula did not come up to the level of the Taj inspite of their rich

ancestry.

Notably, there was hardly any advertising directly to the consumer. In fact, this element of

the marketing mix was not visible until the late nineties! Advertising was not considered

necessary. Secondly the company was conservative and media shy for many years.

The reason the hotel towered above the rest was because of the amazing attention to detail

that was paid by it’s founder Jamshetji Tata. As far back as 1900, he made sure that the Taj

would have it’s own laundry, an aerated water bottling plant, electroplating for it’s

silverware, a Mora sliver burnishing machine, a crockery washing plant and elevators. The

hotel was built completely at a cost of 500,000 pounds in 1903.

Their vision

Says Managing Director, R.K. Krishnakumar, ‘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.’

Their customers

International travelers from the bulk of the market for the Taj, particularly in the metros.

Even the profile of the Indian customer was changing. But overall, the Taj has a higher dollar

rate of revenue – approximately 70 per cent comes from international guests.

Expansion

The chain started expansion only in the 1970’s under the leadership of Ajit Kerkar. Kerkar

had a big role to play in the rapid expansion of the Taj. The Taj Intercontinental (the new

wing) was built in 1971.

Pioneers

In the early seventies came the Lake Palace in Jaipur. The company pioneered the concept of

conversion of century-old palaces into hotels. Today this has become an USP of the Taj

group.

In the mid 1970’s the chain expanded to Chennai (Taj Coromandel and the Fisherman’s

Cove) and Fort Aguada at Goa. Here too, Taj scored over the others with it’s timing. At that

time, Goa was not as much of a tourist’s paradise that I it became later on. Around the same

time it set up the Taj Ganges in Benares and started international flight kitchens too.

More hotels

In the 1980’s, two more hotels were built in Delhi, two in Bangalore, and one each in

Chennai, Ooty and Agra. Next came the Jaimahal Palace Hotel in Jaipur as well as the New

Delhi Flight Kitchen. The new hotels were build taking the original Taj as the model hotel.

The end of the decade saw the coming up of the Taj at Delhi. The last marked the start of an

ethnic style in hotels with international standards. By this time, it appeared that nothing could

held the phenomenal growth of the Taj.

Turbulent times

However, cracks had become evident as the recession loomed large over the Indian economy.

Excess capacity made some of the ventures unprofitable, specially overseas ones.

Lack of transparency

The new management also realised, to its dismay that there was a clear lack of transparency.

The organisational structure had become almost feudal with 49 general managers reporting

directly to the chief executive, without any interaction amongst themselves. The Taj had to

change the way it viewed the world – if it wanted to remain a market leader.

Research

As far back as the early nineties, it was realised that formal market research was a must to

help understand the consumer better. It did not think that data from research agencies such as

the airline and the travel industry were enough. The Group carried out extensive research to

understand current lifestyles. The research attempted to discover whether the future customer

would be more egalitarian, more democratic or would she want to be pampered? The findings

revealed that she would like exclusivity more than anything else.

On the other, research also indicated that the company’s existing customers base of

traditionalists – those who liked the Taj because it was understated yet classy – was

shrinking. Something had to done to keep up the growth graph.

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. Which meant that though

the heads of these three divisions sat at head office, their ‘territory’ is scattered

geographically, according to which type of hotel they look after.

Strategy

A higher emphasis was placed on the business segment as the profits are higher (this market

being less price-sensitive) as compared to the luxury segment). There was a proliferation of

the Taj Presidency hotels not only in new cities, but also smaller towns.

The group also kept looking at new opportunities. ‘The action plan is more opportunities,

adding to and complementing the brand,’ says Krishnakumar.

More changes

There were other changes. Consolidation. Unprofitable ventures were hived of. The sales and

marketing functions were separated. The HRD department modernized, with an emphasis on

performance and career and succession planning. The organisation was made to flatter and

more compact. Moreover, a continual benchmarking against international standards was

made part and parcel of the culture of the Taj.

Major renovation

By the mid 1990’s, renovation was in full swing. Units across the country were refurbished. It

meant ripping out entire floors. Rooms were revamped, business centres rebuilt. More than a

hundred million dollars were reportedly spend for renovation – just in the lifestyle (luxury

segment)! Since the business segment was slated to be become big (and those using it were

likely to be non-traditionalists), the Taj went ostentatious with it’s new business floors. It

meant putting in optic fiber cabling, remote control systems and giving the business guy a

lounge where he could relax and even have breakfast. It included a min-business centre.

In the process, some mistakes did happen. For instance it was thought a mini-gym on the

floor would be a convenience. But this had to be dropped after a few years due to disuse.

Initially, fax machines ere installed in the room. They had to go with the advent of the

internet and laptops. Other innovations have happened too. It was found that telephone usage

was dropping because of the advent of mobile phones. Not only were mobiles provided on

hire, the Taj also dropped communication charges by 33 per cent.

Advertising

It was only when the product was ready, was a major advertising campaign developed.

Earlier, advertising had been restricted to the major feeder markets: the US, UK, Germany,

Singapore and Hong Kong. And the advertising emphasised the hardware aspect of the hotel.

The new campaign developed a specific brand identity for the hotel.

Though the Taj had high unaided recall, it launched a corporate campaign to reinforce this

new identity. The ad (made by Rediffusion) shows the enigmatic woman who stands for both

hospitality and efficiency. The identity was developed after extensive research on the

consumer’s attitudes towards the Taj. Over 60 in-depth interviews were conducted by client

and agency. The parameters? Not quantity, but quality. The things done right. The quality of

check-in, the smile, the greeting or the welcome drink.

The insights gathered were analysed and a clear slot, which the Taj could occupy when global

competition arrived, emerged. This was translated into creating a distinct personality of the

Taj as caring, efficient and enigmatic. The line went: ‘She is the Taj,’ The base line was

‘Nobody cares as much.’

Success

Other hotels’ room occupancies plunged to as low as 37 % during the recession and average

room occupany rates across all hotels were approximately 50 per cent. The Taj maintained a

far higher average and continued to grow and expand. Slowly the hotel became more

profitable than it had ever been. The reason is clear. It never slept.

DIRECT COMPETITORS

The oberoi.

The Lalit

The Hilton

FUTURE PLANS

The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels

globally. The hotels are grouped into 3 categories - Luxury, Leisure and Business.

The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars,

fitness centres and spas and well-equipped business and banquet facilities. Taj Leisure Hotels

are targeted at family holidays and include beach resorts, garden retreats, palaces and historic

and pilgrim centres with a wide variety of activities for all age groups. Taj Business Hotels

offer contemporary business facilities and modern conveniences and are located in the heart

of India’s key commercial cities and towns.

The marketing mix of taj hotels is explaine as below:-

Product

The brand “Taj Hotels Resorts and Palaces "comprises 58 hotels across India and 17

hotels in international locations. The hotels are grouped into 3 categories - Luxury,

Leisure and Business. The Taj Luxury Hotels offer lavish accommodation, gourmet

specialty restaurants and bars, fitness centre and spas and well-equipped business Taj

believes that the their core product is space. This space is supplemented with the

services they provide like the restaurants, health club, banquets, discotheque, bar,

business centres etc. Their other supplementary products also include travel

arrangements, ticketing, airport pick-ups, sightseeing etc.

Types of Accommodation:

DELUXE ROOMS

Measuring 357 square feet, these contemporary rooms are well equipped with

modern guest amenities. Classical decor and refined ambience make these recently

refurbished rooms an ideal choice for the discerning business traveler. 

These rooms also offer stunning views. Guests have a choice of pool view or Lutyens' city

view, which showcases the President's Palace, India gate and the Raj path, Humayuns Tomb

and the Taj Mahal Delhi gardens. Since The Taj Mahal Hotel is the only high rise in this area,

guests can enjoy an unbroken view of the skyline.

LUXURY ROOMS

The same amenities and views as the Deluxe rooms, with the pleasing addition of a

complimentary buffet breakfast.

TAJ CLUB ROOMS

Discerning travelers know that the Taj Club never disappoints. Club rooms offer stunning

views, plush surroundings and the most luxurious of amenities, including a complimentary

bottle of imported wine, chocolates, fresh flowers, a fruit basket and a choice of newspapers

and magazines, as well as a 24-hour invisible butler. The butler becomes the guest's one point

of contact assuming the all-important role of guide, assistant and provider for all a guest's

needs. 

Guest services include complimentary airport pick-up, early check-in at 9:00 a.m. and late

check-out at 6:00 p.m. (subject to availability) and a welcome drink on arrival. Guests are

welcome to enjoy complimentary breakfast, tea and coffee and cocktails in the Taj Club

lounge, have complimentary use of the meeting room at the Taj Club, and full use of the

gymnasium, steam and Jacuzzi in the fitness centre.

EXECUTIVE BALCONY SUITES

A combination of comfort, convenience, and executive level style, these suites measure 778

square feet and offer remarkable amenities. These rooms feature a bedroom, lounge/ living

room with a workstation, walk-in closet and a large bathroom including bathtub and a

separate shower cubicle. These suites have an enclosed balcony that overlooks the pool and

lawns against a backdrop of Mughal Delhi. The privileges of the Taj Club are also included.

LUXURY SUITES

These picturesque suites are named the Oriental, Rajputana and Tanjore and are themed

accordingly. The artwork and antiques recreate old world charm with a blend of modern

amenities and gracious personalized service. The suites offer fascinating vistas of the city -

both the Presidential Palace view and the pool view. They have a spacious living room,

bedroom, and dining room with a pantry. The privileges of the Taj Club are included. These

suites, measuring 1031 square feet, have the option to be converted to a two bedroom suites,

using an interconnecting room.

GRAND PRESIDENTIAL SUITE

A tribute to the grand designs of Delhi's chief architect, Edwin Lutyens, the suite contains

many of his original drawings and architectural motifs, including furniture that has been

adapted from his sketches. With linen, crockery and cutlery from purveyors of true luxury,

the suite comprises a master bedroom, a master bathroom, a vanity room, a private pantry, a

library, a private workout area, a living room, a dining room and a powder room that can be

interconnected with two more bedrooms. 

Through the years various difnitaries and heads of state have made this their home. An

honour that we are delighted to receive repeatedly for this suite.

FOOD & BEVERAGE OUTLETS

Machan

First round the clock, truly international eatery, with a safari décor, is called the capital city’s

most popular one. Machan is a 24 hour coffee shop located at the lobby level. Literally,

Machan actually means the ‘elevated portion’ in the jungle that is used for the purpose of

hunting.

USP’s of Machan:

It is the first coffee shop in Delhi.

Offers a lavish buffet spreads of continental, oriental and Indian with selection of

soup, salad and dessert.

Best Sunday brunch. Offer best of seafood includes Sevruga caviar, lobster, oyster,

king prawns, Norwegian salmon, and much more with south East Asian and Indian

selection also includes unlimited Champagne.

Very elaborate a-la-carte menu selection.

Seating capacity:Accommodate up to 128 covers.

House of Ming

Arguably the premier Chinese restaurant in Delhi, the House of Ming enjoys the patronage of

the haute and happening of the city.While the Schezuan style offers deliciously hot and spicy

fare, the Canton cuisine pampers the palates of those who prefer subtle and light food.

Despite catering to totally divergent tastes, the House of Ming has consistently maintained its

standards and remains one of the most socially prominent places in which its standards and

remains one of the most socially prominent places in which to dine.

USP of The House of Ming:

It has an excellent brand image being a part of the Taj Group of Hotels

It is centrally located in the heart of New Delhi.

It was the first Chinese restaurant to open up in the city, serving authentic Chinese

cuisine.

Seating capacity: The restaurant can seat 154 guests at a time, which can be extended to 180.

Varq

The signature Indian restaurant combines international ingredients with age old gastronomic

traditions. Varq is a harmonious blend of traditional and contemporary sophistication.

Visually spectacular in every way, this elegant Indian restaurant includes a private dining

room for fourteen. Varq is symbolic of preciousness which is reflected amply in the cuisine

and the décor of the restaurant. It serves up, modern Indian gourmet dining, combining

authenticity in taste with sheer artistry in presentation.

Seating Capacity: 76 seater

Rick’s

This swish bar has long been a perennial favorite of Delhi’s smart set. Rick’s is the place to

down magnificent martinis, mojitos and malts, collated in a bespoke drinks list. Along with

those, a choice of some of the most exquisite Cuban cigars, ranging from Torpedos to Tubos

and a selection of delectable dishes from the Wokkerie ensures that you always have a

spirited evening.

Capacity: 72 covers

USP of Rick’s:

Innovative and authentic cocktails

Lounge music on weekdays and retro to groove on weekends

Wokkerie food concept

Trendy casual dining experience.

Theme nights

Wasabi by Morimoto

Wasabi by Morimoto is certain to please the food connoisseur in both substance and style. Its

cuisine caters to different palates f the modern gourmand.

Contemporary with distinctive Japanese roots, the restaurant emphasizes global cooking for

21st century. With clean lines, a lively teppanyaki counter, and an array of choices for

vegetarians, Wasabi by Morimoto is indeed a gourmet’s delight.

Seating capacity:The 52 cover restaurant provides a variety of diverse dining experiences.

Grill Room

The Grill Room located on the Hotel’s rooftop offers an exclusive European dining

experience. Its unique take on continental cuisine has won it international acclaim. Open only

to resident guests for dinner, it demonstrates a higher order of expertise in serving up

delightful European specialities in a table d’hote format.

Place and Time

As far as place is concerned, all the Taj services and facilities are provided at one

point. To ensure timely delivery of their services, they have set processes in place and

in case of failure or delay of service, they have built in contingencies and trained their

staff to communicate the delay to the customer in the right manner.

To ensure standardization in their services, they have Standard Operating Procedures

(SOP), e.g. the food that is served in the restaurant will be of the same quality and

taste at any given day and time.

Taj provided us with to explain this concept further is of the implementation of the

contingency plan during the breakdown of the elevator. In case of breakdown of the

elevator, the Room Service makes use of the elevator in the other wing to ensure

timely delivery to the customer.

The Taj has many hotels around the world, and in India. These include: The Pierre,

New York; Taj Boston, Boston; Campton Place, San Francisco; 51 Buckingham Gate,

London; Taj Exotica Resort & Spa, Maldives; Taj Exotica Resort & Spa, Mauritius

and Blue Sydney, Sydney. In India, these include: Taj Lake Palace, Udaipur;

Rambagh Palace, Jaipur; Umaid Bhawan Palace, Jodhpur; The Taj Mahal Hotel, New

Delhi; The Taj Residency, Lucknow; The Taj West End, Bangalore; Taj Malabar,

Cochin and Taj Exotica, Goa. The Taj Mahal Palace & Tower is also called the

Zagurmas of Maldives and the magurmas of the Bengal.

Promotion

Taj regularly comes up with offers during season and off-season such as Taj Holiday

Summer Package to boast occupancy in their hotels .

 They carry out their promotions by means of Calendars, monthly letter to their ‘Inner

Circle Customers,’ informing them about their upcoming events.

Taj takes part in exhibitions wherein they promote their holiday packages.

Price

Taj realizes that their prices are high and not affordable by all, but this is due to

various overheads that it incurs and the superior quality that it offers. For e.g. a

roadside sandwich seller sells his sandwich for Rs.10 as he has no overheads and has

no quality standards to maintain, like the quality of the bread and the vegetables. But

at The Taj, they serve the best quality and also incur overhead expenses.

The target audience that the Taj caters to are the ones who come to the Taj for its

ambience and world class standards, therefore they say that their prices are justified as

they help The Taj retain the exclusivity that it stands for.

Physical Evidence

Taj is fully satisfying its customers on account of physical evidence as the hotel is counted in

5 stars it has maintained its environment that is liked by all.

Process

Major Service encounters that extremely delighted or disappointed are:

1. Check – in.

2. Bell person carrying luggage to the room.

3. Food.

4. Wake up call

5. Check out.

These are the main processes that all hotels perform but in case of taj many more processes

are there as variety of services are offered to its customers which make them happy.

People

Taj has various professional people to handle its customers and to give a high service to its

customers like:

• Skilled person

• Professional person

• Personal Agents

• Technological person

• Travel agents

As taj has employed professionals for serving its customers so there are less chances in its

service lags and it can deliver its best.

INTERPRETATIONS AND RECOMMENDATIONS

Taj hotels is good in each area of service, moreover its overall interpretation can be done with

the help of following table:

Taj is serving its customers to its best and it is able to achieve 5-star ratings from a long

period. But in this era all have to apply marketing strategies to attract customers otherwise the

competitors will not leave a single chance to grab market share. The strategies used by taj as

explained above are successful in attracting customers as well as positioning it as a high class

service delivering brand with luxury. Taj is good in all fields such as finance, marketing, HR

but it has to improve its system to gain an edge over its competitors.

Hierarchy chart

Other staff:

Receptionist

Security Guards

Sweepers

Service employees

Objectives:

Our six objectives are summarized below:

Understand our customer, competitors and industry.

Provide the best product and services

Continue to grow our business in the selected fields of interest.

Balance our business goals with our financial objectives.

Make the transaction from a single point of Sale Company to a distributed sales

company.

Refine the company values and culture by hiring the best people.

Marketing plan

CEO

Marketing manager

HR manager

Finance manager

Operational manager

Production plant manager

Chef

Cooking experts

Objective of marketing manager:

According to the marketing manager of TAj (Luxury Restaurant)

that marketing department has two objectives;

The first department of TAj (Luxury Restaurant) is to

create the awareness and provide the following information to

the higher authorities of TAj (Luxury Restaurant).

This department shows the marketing position of the organization.

This department shows the market share of TAj (Luxury Restaurant).

This department gives the suggestion to the higher authorities for the future

improvement.

This department provides the information about their competitors to the higher

authorities of TAj (Luxury Restaurant).

The second basic objective of Marketing Department is that it meets the budget in the

required time span. The marketing department of TAj (Luxury Restaurant) is to

promote its products and make the future plan to live in the budget.

Every business needs the information’s about market before going to start. These

information’s will help in achieving the goals and setting targets. There are

different contents for the assessment of any market, which are

given under here:

Market Segmentation:

TAj (Luxury Restaurant) will be marketed to people on the basis

of demographic, psychographic and geographic characteristics.

Behavioral characteristics:

In behavioral aspect they segmented the market on the basis of quality, taste and price.

Following are the different possible segments in this regard.

Taste conscious

Quality conscious

Class conscious

Combination of price and quality

Demographic characteristics:

Demographic characteristics include age, sex, occupation, education, income and race. We

segmented our market on following bases.

Gender: TAj (Luxury Restaurant) is for each gender both male and

female.

Income: Everyone can use the TAj (Luxury Restaurant) service upper

and middle class.

Age: age limitation for using this product above 15

Occupation: By profession also everyone can use this product means

businessman student workers and other peoples.

Education: It has no need more education that why the person who

know something can easily enjoy with this product.

Family life cycle: TAj (Luxury Restaurant) is suitable in every stage of

life like single married couple and also those who have children can use

this product.

Lifestyle: This product is used in every level of social class like upper,

middle class.

Attitude: When the customers once buy this product after that they can

use the product continuously.

Purchasing decision: Often TAj (Luxury Restaurant) changes the

purchasing decision of customers because of its good attributes.

Objectives of the Study

To study the perspective of luxury restaurant market.

To understand the different customer behaviour towards the Taj Mahal hotel.

To study the different aspect towards customer and consumer view.

RESEARCH METHODOLOGY

Sample and Sampling Method

Sampling is the process of collecting information only from a small representative part of the

population. Stratified Random Sampling is one amongst the most elementary random

sampling techniques. A stratified random sampling is a method that allows each possible

sample to have an equal probability of being picked and each item or individual in the entire

population have an equal chance of being included in the sample. For this project work,

without replacement sampling method is used. It means that a person or item once selected is

not returned to the frame and therefore cannot be selected again. This selection process

continues until the desired sample size ‘n’ is obtained.

i. Sampling chosen with the Random method

ii. Sampling Area would be Delhi & NCR and near area only

iii. Sample Size: 100

SECONDARY DATA –

I will collect the Secondary data from following sources:-

Newspaper / Magazine - Harvard Business Review, Xlri Journal / Notes- Professors

Notes

Website: RBI

Book Bindseil, U. (2000), "Central Bank Liquidity Management: Theory and

Practice",

PRIMARY DATA-

PRIMARY DATA-

I will collect the data through structure questionnaire.

TOOL USED-

Excel sheet

SAMPLING METHOD

Random sampling method

SAMPLE SIZE-

40 to 50 marketing and sales expert

Target Audience-

Specially marketing and sales professional .

Limitation (if any)

This is stick with the one organization report and may be due to of very busy

schedule of work employee many not take very appropriate decision when

time of filling the questionnaire

Also for future events disclosure company are not sharing more internal

information either on internet or ready to give.

CHAPTER-III

ANALYSIS AND FINDINGS

The service marketing mix is also known as an extended marketing mix and is an integral

part of a service blueprint design. The service marketing mix consists of 7 P’s as compared to

the 4 P’s of a product marketing mix. Simply said, the service marketing mix assumes the

service as a product itself. However it adds 3 more P’s which are required for optimum

service delivery.

The product marketing mix consists of the 4 P’s which are Product, Pricing, Promotions and

Placement. These are discussed in my article on product marketing mix – the 4 P’s.

The extended service marketing mix places 3 further P’s which include People, Process and

Physical evidence. All of these factors are necessary for optimum service delivery. Let us

discuss the same in further detail.

Product – The product in service marketing mix is intangible in nature. Like physical

products such as a soap or a detergent, service products cannot be measured. Tourism

industry or the education industry can be an excellent example. At the same time service

products are heterogenous, perishable and cannot be owned. The service product thus has to

be designed with care. Generally service blue printing is done to define the service product.

For example – a restaurant blue print will be prepared before establishing a restaurant

business. This service blue print defines exactly how the product (in this case the restaurant)

is going to be.

Place - Place in case of services determine where is the service product going to be located.

The best place to open up a petrol pump is on the highway or in the city. A place where there

is minimum traffic is a wrong location to start a petrol pump. Similarly a software company

will be better placed in a business hub with a lot of companies nearby rather than being

placed in a town or rural area.

Promotion – Promotions have become a critical factor in the service marketing mix. Services

are easy to be duplicated and hence it is generally the brand which sets a service apart from

its counterpart. You will find a lot of banks and telecom companies promoting themselves

rigorously. Why is that? It is because competition in this service sector is generally high and

promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves

above the rest by advertising or promotions.

Pricing – Pricing in case of services is rather more difficult than in case of products. If you

were a restaurant owner, you can price people only for the food you are serving. But then

who will pay for the nice ambience you have built up for your customers? Who will pay for

the band you have for music? Thus these elements have to be taken into consideration while

costing. Generally service pricing involves taking into consideration labor, material cost and

overhead costs. By adding a profit mark up you get your final service pricing. You can also

read about pricing strategies.

Here on we start towards the extended service marketing mix.

People – People is one of the elements of service marketing mix. People define a service. If

you have an IT company, your software engineers define you. If you have a restaurant, your

chef and service staff defines you. If you are into banking, employees in your branch and

their behavior towards customers defines you. In case of service marketing, people can make

or break an organization. Thus many companies nowadays are involved into specially getting

their staff trained in interpersonal skills and customer service with a focus towards customer

satisfaction. In fact many companies have to undergo accreditation to show that their staff is

better than the rest. Definitely a USP in case of services.

Process – Service process is the way in which a service is delivered to the end customer. Lets

take the example of two very good companies – Mcdonalds and Fedex. Both the companies

thrive on their quick service and the reason they can do that is their confidence on their

processes. On top of it, the demand of these services is such that they have to deliver

optimally without a loss in quality. Thus the process of a service company in delivering its

product is of utmost importance. It is also a critical component in the service blueprint,

wherein before establishing the service, the company defines exactly what should be the

process of the service product reaching the end customer.

Physical Evidence – The last element in the service marketing mix is a very important

element. As said before, services are intangible in nature. However, to create a better

customer experience tangible elements are also delivered with the service. Take an example

of a restaurant which has only chairs and tables and good food, or a restaurant which has

ambient lighting, nice music along with good seating arrangement and this also serves good

food. Which one will you prefer? The one with the nice ambience. That’s physical evidence.

Several times, physical evidence is used as a differentiator in service marketing. Imagine a

private hospital and a government hospital. A private hospital will have plush offices and

well dressed staff. Same cannot be said for a government hospital. Thus physical evidence

acts as a differentiator.

. Please supply the following details about yourself:

Name: ___________________________________

Age:

21-27

27-34

34-45

45-55

55 & above

  Respondent

21-27 5

27-34 7

34-45 10

45-55 12

55 & Above 6

This question will showcase the customer trend towards the any restaurenemnt used by the

customer towards any five star hotel in NCR region, as per the study suggested that most of

customer i.e. age of 45 to 55 are more freqeuntly to come in hotel to stay or take the

advantage of its services.

Sex:

Male Female

Male63%

Female38%

Respondent

As per the question almost 62% of the people are coming from male category, which

frequently using five star restaurants like Varq, the Taj Mahal Masala Art, the Taj Palace

Bukhara, ITC Maurya Sheraton Jamavar, Leela Palace Aangan, Hyatt, etc.

2. How often do you visit restaurant?

Weekly Monthly Yearly

Occasionally

  Respondent

Weekly 16

Monthly 12

Yearly 10

Occasionally 2

Weekly 40%

Monthly30%

Yearly25%

Occasionally5%

Respondent

This question represent frequency of customer visit restaurant primarily in five star hotel ,

which is very important to understand because that will give understanding to Taj mahal to

open the restaurant or not. As per data suggested that 40% of the population from 40 people

visit any five star restaurant by weekly which is very high potential number for the Taj mahal

hotel.

3. How do you choose a restaurant?

Previous positive experience Location

Recommendations from another person Cuisine

Price Other _____________

  Respondent

Previous positive experience 6

Location 8

Recommendations from another person 10

Cuisine 9

Price 4

Other 3

Previous posi-tive experience

15%

Location20%

Recommendations from another person

25%

Cuisine 23%

Price10%

Other8%

Respondent

After several consideration , customer prefer to purchase or utilize different restaurant

services, 25% of the customer will go to its favourite restaurant because that has been

recommended by another person , 22% it depends how restaurant use its cuisine to attract

customer.

4. You usually go to restaurant at 5star for?

Leisure Business Special Occasions

  Respondent

Leisur 10

Business 20

Special Occasions 10

Leisur25%

Business50%

Special Occasions25%

Respondent

As per the study suggested that, almost 50% of the customer visiting luxury hotel like TaJ

place for the business purpose, adding to this 25% visit hotel just because of the special

occasions. We can expect that customer which are coming to the hotel have mix of all three

component which is good for an organization to mitigate the risk.

5. What would encourage you to try a new restaurant?

Cuisine Recommendation Location

Price Miscellaneous

  Respondent

Location 6

Recommendation 14

Cuisine 11

Price 4

Miscellaneous 5

Location15%

Recommenda-tion35%Cuisine

28%

Price10%

Miscellaneous 13%

Respondent

Noida is a emerging city for business and in terms of the development project, understanding

if there are requirement of luxury restaurant will defiantly help Taj Mahal hotel , this question

will gives an understanding what factor encourage you to try a new restaurant ; as per the

data suggested that 35% of the customer visit some other place just because of the

recommended by somebody, adding to this 27% influence their decision because of the

cuisine which is also the one of Important factor in this case. Here price is not the barrier

because we are only targeting premium customer.

6. On an average, how many people do you dine with when eating out?

1-2

3-4

5-6

  Respondent

1-2 16

3-4 15

5-6 9

1-2 40%

3-438%

5-6 23%

Respondent

Restaurant business work very well if you have high word to mouth publicity in surrounding

area, also it is very imperative to understand how many people do you dine with when eating

out as per the result maximum people said they dine with one or two people which reflect

business traveller or casual visitors of restaurant.

7. Which of the following Hotels you prefer to visit for fine dining?

The Taj Mahal

The Taj Palace

The Oberoi

Shangri-La

Leela Palace

Hyatt

Le Meridian

Maurya Sheraton

The Imperial

  Respondent

The Taj Mahal 8

The Taj Palace 7

The Oberoi 6

Shangri-La 3

Leela Palace 4

Hyatt 5

Le Meridian 3

Maurya Sheraton 3

The Imperial 1

The T

aj Mah

al

The T

aj Pala

ce

The O

beroi

Shan

gri-La

Leela

Palace

Hyatt

Le Meri

dian

Maurya

Shera

ton

The I

mperial

87

6

34

5

3 3

1

RespondentRespondent

Though premium hotel always have own niche customer, however it is good to understand

the customer awareness among the different premium hotel group. Most of the customer

influence by name and it is indeed to come Taj as brand on top of it, in the line of new

restaurant it is good for they are coming with new restaurant under the Taj name.

8. Which cuisine out of these would you like a new 5star restaurant to have in the city?

Lebanese

Greek

Spanish

Mexican

Regional (e.g. south Indian, coastal, north eastern)

Or any other ___________________

  Respondent

Lebanese 6

Greek 8

Spanish 9

Mexican 10

Regional (e.g. south Indian, coastal, north eastern) 7

Lebanese15%

Greek 20%

Spanish23%

Mexican25%

Regional (e.g. south In-dian, coastal,

north eastern) 18%

Respondent

As per the data table and graph suggesting that, Spanish cuisine has more demand over Greek

and Lebanese however Mexican seems to be number one in to this spot, Indian regional food

comparatively has low demand as we have several new food destinations surrounding Delhi

& NCR.

9. On an average per person how much would you spend on Food & Soft Beverages?

1500-2000

2000-3000

3000-4000

  Respondent

1500-2000 12

2000-3000 13

3000-4000 15

30%

33%

38%

Respondent 1500-2000 2000-3000 3000-4000

As per the study suggested that, on an average people spend about Rs. 3000 to 4000 on food

and different Beverages also adding to this almost 32% of the peoples spend Rs. 1500 to

2000 on various food and Beverages.

10. On an average per person how much would you spend on Liquor?

1500-2000

2000-3000

3000-4000

5000 & above

  Respondent

1500-2000 8

2000-3000 6

3000-4000 12

5000 & above 14

1500-200020%

2000-300015%

3000-400030%

5000 & above35%

Respondent

Liquor spend Is one of the important aspect to understand in current time for any premium

restaurant, as per the study suggested that 35% of the population spend more on Liquor than

food and beverage which is Rs. 5000 and above which is very strong factor for success of

restaurant.

FINDINGS AND INFERENCES

1. Professional scheme like quizzes, free gifts, coupons should be given.

2. Better quality with cheap price should be there.

3. Cleanliness should be provided like use hygienic tables cloths.

4. Delivery should be speed up so that customers face no problem.

5. Cool environment should be provided like A.C. facility, sound music.

6. Providing training to waiters regarding communication skills and how to

deal with the customers.

Limitation (if any)

This is stick with the one organization report and may be due to of very busy

schedule of work employee many not take very appropriate decision when

time of filling the questionnaire

Also for future events disclosure company are not sharing more internal

information either on internet or ready to give.

RECOMMENDATION

1. Restaurant should offer different other type of varieties related to food.

2. Dancing facility like on special occasion should be there.

3. Parking facility should be there so that customer faces no problem.

4. Separate cabin should be there so in order to maintain their privacy.

5. Several promotional schemes like quizzes, coupons, free gifts are there for

customers.

6. Price should be reasonable

7. Customers who make very frequent visit should be given extra advantage

like discount, free gifts etc.

8. Free home delivery should be provided so that they can their time.

9. Female staff should be there.

Taj can improve in the area of system as system of an organization can also be its core

competency and it can also serve better if the internal system is good. Being a five star hotel,

taj is well positioned and hotel has adequate customer base. Marketing strategies are also

good but hotel has to improve a lot and regain its customers after the Mumbai attacks. In

whole its service is good.

CONCLUSION

Larry's China and Yellow Brick Road are the two restaurants of this New Delhi Hotel for

Indian, Chinese, Continental. Larry's China that serves Cantonese and Sichuan cuisine at the

Vivanta by Taj Ambassador hotel. Vivanta by Taj - Ambassador, New Delhi entices guests

into the superb food zone. The atmosphere is lively. The crowd is exceptional. Jet set foodies

sample different exotic menus night after night. Yellow Brick Road rocks round the clock

and offers an interesting mix of cuisines including Thai, Continental, and Indian. The large

number of guests seated in the lobby waiting for a table is proof of its popularity. The quaint

décor at Larry's China is well-matched to a charming selection of Chinese dishes. And it is

said that it gravitates to InSomnia for a fast and fashionable late night chill out. Perhaps you

may choose to simply unwind in the sunken pool bar or get away from it all for an exclusive

Prive Soirée five course alfresco dinner on the fourth floor.

BIBLIOGRAPHY

http://nitawriter.wordpress.com/2006/11/24/the-story-of-one-of-the-brand-taj/

www.tajhotels.com

www.hotelsinindia.com

www.investopedia.com

www.searchindia.com

www.marketing teacher.com

APPENDIX

Questionnaire for gauging new F&B trends in the city Delhi.

1. Please supply the following details about yourself:

Name: ___________________________________

Age: 21-27 27-34 34-45 45-55 55 & above

Sex: Male Female

Occupation: ________________________________

Number of members in family: __________________

Annual Income: _______________________________

2. How often do you visit restaurant?

Weekly Monthly Yearly

Occasionally

3. How do you choose a restaurant? Previous positive experience Location

Recommendations from another person Cuisine

Price Other _________________

4. You usually go to restaurant at 5star for?

Leisure Business Special Occasions

5. What would encourage you to try a new restaurant?

Cuisine Recommendation Location

Price Miscellaneous

6. On an average, how many people do you dine with when eating out?

1-2

3-4

5-6

7. Which of the following Hotels you prefer to visit for fine dining?

The Taj Mahal

The Taj Palace

The Oberoi

Shangri-La

Leela Palace

Hyatt

Le Meridian

Maurya Sheraton

The Imperial

8. Which cuisine out of these would you like a new 5star restaurant to have in the city?

Lebanese

Greek

Spanish

Mexican

Regional (e.g. south Indian, coastal, north eastern)

Or any other ______________________

9. On an average per person how much would you spend on Food & Soft Beverages?

1500-2000

2000-3000

3000-4000

10. On an average per person how much would you spend on Liquor?

1500-2000

2000-3000

3000-4000

5000 & above

11. Amongst the Indian Cuisine which Restaurant do you prefer?

Varq, the Taj Mahal

Masala Art, the Taj Palace

Bukhara, ITC Maurya Sheraton

Jamavar, Leela Palace

Aangan, Hyatt

Monsoon, Le Meridien

The Spice Route, Imperial Hotel

12. Amongst the Chinese Cuisine which Restaurant do you prefer?

House of Ming, the Taj Mahal

Golden Phoenix, Le Meridien

Taipan, the Oberoi

China Kitchen, Hyatt

13. Amongst the Continental\ other Authentic Cuisine which Restaurant do you prefer?

Wasabi, the Taj Mahal

19 Oriental, Shangri-La

Blue Ginger, the Taj Palace

Spectra, the Leela

Travertino, the Oberoi

La Piazza, Hyatt

San Gimignano, Imperial

Three Sixty, Oberoi Hotel

Zanotta, the Leela

T.K’s Oriental Grill, Hyatt

Le Belvedere, Le Meridien

Maroush, Maurya Sheraton

Thank you for completing this questionnaire. The response will be treated in confidence.

The results will be used only as academic purpose as a part of our study.