Neeraj J.

Nayak

MBA (1116105)
AIMIT Mangalore

INTRODUTION: Matthan exemplifies classical elegance and ultra-modern technology providing leisure and business to the guest, "your way right away". The Hotel is the epitome of a culture of quality with several years of dedicated food and beverage service experience and professional staff. THE HOTEL: Sterlings Mac Group, pioneers in Restaurant business spread across the globe with over 250 outlets has ventured into hospitality segment in India by offering a unique concept Matthan a five star deluxe hotel with a blend of Business and Leisure. Positioned on HAL Airport Road, Bengaluru in close proximity to the Commercial, Business and IT Parks, serves as the right place to stay, work and relax. Matthan is an architectural delight. With Indo-Asian elements playing a key role, the hotel boasts of intelligent designs and contemporary functionalities. It has 2 wings based on its architectural splendor namely the Asian block and the Dynasty block. The hotel has 198 well-appointed rooms wherein the Asian block houses 145 rooms and the Dynasty block houses 53 suites. The rooms are well equipped with facilities and services unmatched in the industry. Each room can be distinguished from another by the uniqueness of elements like bedding, lighting etc. built to suit each individual taste. Apart from regular amenities in each room like king size beds, twin beds, in-room safe, work desk, dual mini bar, high speed internet access, Tea coffee maker, the rooms have a few exclusive features like IP enabled television and telephone, modern

luxurious bathrooms that match international standards to make your stay a fulfilling one. The added attraction of Matthan is the splendid Atrium where the architecture comes to life with Indo-Asian concepts of Infinity and Zen. EXECUTIVE SUMMARY: Matthan is a hotel of class, elegance and quality. Its an business class hotel where The target customers are corporates and the business class people. The location of the hotel is in the heart of the city where most of the MNCs and Tech parks are located hence it has tough competition from Hotel Leela and Royal Orchid which are located in the closer proximity of the hotel, hence retaining the customers back to the hotel is an challenge. One can satisfy the customers but cant control their changing demands and tastes which make them keep on trying different hotels and restaurants. Therefore customer retention has become one of the biggest challenge faced by the 5star hotels. CHALLENGES FOR MATTHAN: Brand Equity Customer Retention Media Planning Customer Profiling Business Analysis (Inflow and Outflow of guests) Customer Feedback Analysis Event Management Guest-Relationship Management PROBLEM DEFENITION: CUSTOMER RETENTION: Even though the hotel gives it best to satisfy its customers to their level best, the demands of the customers keeps on wavering and due to this wavering taste the always tries different places and hotels. The main challenge of customer retention is the locality of the hotel which has its own positives as well as negatives.

PROBLEM FORMULATION: WHAT IS THE PROBLEM??? Customer Retention WHY IS THE PROBLEM ARISING??? Wavering customer taste and demands HOW BIG IS THE PROBLEM??? Hotel business gets affected PROBLEM SCANNING: CONTROLLABLE VARIABLES Quality of service Infusion of Capital Addition or subtraction of amenities Beautification of Ambience UNCONTROLLABLE VARIABLES Wavering customer demands Wavering customer taste. Market potentiality. Govt Rules & Regulations. Lack of Human Resource. Employee Dissatisfaction. Competitor Prices. Wavering Economic Condition. Increasing Competition

PROBLEM SPECIFICATION: According to CRM experts Jay Curry and Adam Curry: Top 20% of the customer delivers 80% of the revenue. Existing customers contributes up to 90% of the revenue Top 20%of the customers deliver more than 100% profits. The bulk of marketing benefit is often spent on people other than customers. Between 5% and 30% of all customers have the potential for moving upward the loyalty ladder 2% upward migration in the loyalty ladder means 10% more revenue and 50% more profits.

UNCONTROLLABLE VARIABLES CONTROLLABLE VARIABLES Quality of Service Infusion of Capital Addition and subtraction of Amenities Beautification of Ambience Wavering customer demands Wavering customer taste. Market potentiality. Govt Rules & Regulations. Lack of Human Resource. Employee Dissatisfaction. Competitor Prices. Wavering Economic Condition Increasing Competition.

PROBLEM RESOLUTION: Yesterdays Solutions are Tomorrows Problems Hence the problem faced by Matthan can be resolved but not solved. Image/Promotion - Integrated marketing communications, newsletters, regular customer contact, informational materials, website etc. Service Quality - continuous quality initiatives, convenience, customer service training, demonstrate that customers are highly valued, customer representatives/ ombudsman, service failure training, smile, and treat customers as family. Research - analyze defection rates/reasons, classify customers by usage/satisfaction/loyalty, and develop targeted retention programs. Internal Marketing - loyalty task force, prepare solutions to recurring problems, share appropriate customer data with staff, reward and publicize customer care person of the month.

 Customer-Centered - dialogue marketing, customer bill of rights, customer care councils, understand customer expectations. The Customer Retention Model:

CUSTOMER LOYALTY MATRIX: TRANSACTION Butterflies: High profit potential Transaction satisfaction Milk active accounts Cease investing RELATIONSHIP True Friends: Best profit potential Consistent communication Attitudinal & behavioral loyalty Delight customers Barnacles: Low profit potential Measure size and share of wallet Low share, up- and cross-sell Small wallet, strict cost control

HIGH PROFIT

LOW PROFIT

Strangers: Lowest profit potential Make no investment Max transaction profit

SUGGESTIONS: Build a customer database/marketing information system Design ongoing customer programs - continuity and loyalty-based initiatives Offer long term services - membership/subscription programs Custom promotion - use reminder advertising and press releases. Focus on key accounts and heavy users Use newsletters/informational materials to stay in touch with infrequent customers Attend trade shows Research customers needs and wants Welcome suggestions and complaints