MINOR PROJECT REPORT

On The Topic
MARKETING STRATEGIES OF HOTEL TAJ, DELHI

Submitted To

Prepared By

Mrs Amanpreet

Karan Nasa
BBA (G) rd Semester
02890201713

SRI GURU TEGH BHADAHUR INSTITUTE OF MANAGEMENT STUDIES AND

INFORMATION TECHNOLOGY

Affiliated to
GURU GOBIND SINGH UNIVERSITY
SEC-16C,DWARKA,NEW DELHI 110075

CONTENTS
Sl.No

Particulars

.
1

Acknowledgement

Exclusive Summary

Chapter 1 - Introduction
1.1 - Introduction to project report
1.2 Company Profile

Chapter 2- Literature Review

Chapter 3 Research and Objectives

3.1 Objectives of the study
3.2 Research & Methodology

Chapter 4 A Conceptual Discussion/ Marketing Strategies

4.1 Marketing Set - up
4.2 Product
4.3 Place
4.4 Promotion
4.5 Pricing
4.6 SWOT Analysis
4.7 Competitive Analysis

Chapter 5 - Conclusion

10

Chapter 6 - Recommendations

11

Chapter 7 Limitations of the study

12

Bibliography

13

List of Appendices

Page no.

CHAPTER 1
INTRODUCTION
Analysis of Marketing Strategies of Hotel Taj Palace, Delhi

1.1

Introduction to Project report

1.2 Company Profile

Taj Group of Hotels

Taj group of hotels is the largest chain in India- with several Hotels abroad also. The parent Hotel-The Taj
Mahal Hotel, Bombay is rated among the 10 best hotels in the world.
The History of the Taj
The founder of the house of Tatas, Mr.Jamshetji Nuserwanji Tata, in 1894 formed

the Indian Hotels

Company and built the exquisitely beautiful Taj Mahal Hotel in Bombay. The doors opened in 1903 and has
been a landmark by the Gateway of India ever since.
In 1971, the 220 roomed Taj Mahal Hotels in Bombay was converted to a 325 Roomed hotel, and a multistory
structure was built adjoining the original property. In 1972, the Lake Palace at Udaipur and Rambagh Palace
in Jaipur was linked to the Taj and a Chain was born. In 1974, a new company was floated, which created the
Taj Coromandel in Madras. In the same year the chain broadened with the acquisition of fort Aquada Beach
Resort in Goa.
In 1976, Fishermans Cove was built which is 30 minutes drive from Madras on the Bay of Bengal with a
Private Beach. In the same year, the Taj Group opened the Taj Flight Kitchen in Bombay, Catering to both
domestic and international flights.
In 1978, the glittering Taj Mahal was opened in Delhi, and this was followed by The Taj Ganges in Varanasi
after two years.
The1980s was to see a rapid expansion of the group and the gigantic Taj Palace in New Delhi was opened.
The Shiv Nivas Palace at Udaipur and TAC (Taj Air Caterers) in New Delhi Airport were also opened.
Followed by this was the opening of Taj Residency in Bangalore, the Savoy Hotel in Ooty and the Raj Mahal
Palace in Jaipur and the Taj View Hotel in Agra. Taj has been operating in the USA, UK, the Maldives, Oman
and Srilanka and the Taj Empire continues to expand further. Today Taj has 93 Hotels in 55 destinations and is
the largest Hotel chain in the country. Only one hotel group knows India and South Asia so well, and does so
with such consummate style. From its earliest days, taking residence with The Taj Group has been a grand
occasion. When The Taj Mahal Hotel, Mumbai, opened in 1903, the event was described by The Times,
London, as a resplendent debut.

Taj Palace is Luxury Hotel under Taj Group of Hotels. It is ideally located, 10 minutes from the Airport, 10
minutes from down town situated amidst 6 acres of landscaped greenery; Taj Palace hotel offers convenience
and gentle ambience. The hotel combines attractive functionality with style in a peaceful symbiosis. In Taj
tradition, one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special
emphasis on cuisine. Taj Palace has 421 rooms and suites. Each Deluxe Business floor room is a modern
business centre. So too is their exclusive club floor rooms. Within quiet reason, everything that one wishes is
available round the clock Taj Palace hotel including the finest cuisine in town. On request in-room fax, E-mail
facility, Laptop computer, background information on major Indian industries, plus on line accessibility to
world business information is available. There are six restaurants and a bar in the hotel to offer its guests. To
name the few are Orient Express, Isfahan, and The Tea House of the August Moon, Handi and My Kind of
Place

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

business amenities, as a part of Rs. 300 crore upgradation programme. All Luxury Hotels now have renovated
rooms, a state of the art Business Centre and a modern Fitness Centre. The Taj group also has eight Business
Hotels spread over different corners of the country. There are 20 Taj Leisure Hotels out of which 16 are in
India and 4 are abroad.
Today, The Taj Group is Indias largest and finest hotel chain offering 48 hotels in 34 locations across the
subcontinent. This growth has been as diversified as it has been impressive. In addition to superlative luxury
hotels, The Taj Group includes business hotels, beach resorts, palace, garden retreats and other comfortable
accommodation. Internationally, The Taj Group has a few properties in key cities like London, New York,
Washington DC Chicago and locations in the Middle East and in Africa.
The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India, together
with superb comforts and modern facilities. All of these combine to make The Taj Experience a must.
The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts
and Palaces and is recognised as one of Asia's largest and finest hotel company. The Taj, a symbol of Indian
hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces comprises 66 hotels in 42
locations across India with an additional 16 international hotels in the Maldives, Malaysia, Australia, UK,
USA, Bhutan, Sri Lanka, Africa and the Middle East.

Spanning the length and breadth of the country,

gracing important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and wildlife
destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality, vantage locations,
modern amenities and business facilities. IHCL operate in the luxury, premium, mid-market and value
segments of the market through the following:

Taj (luxury full-service hotels, resorts and palaces) is our

flagship brand for the worlds most discerning travelers seeking authentic experiences given that luxury is a
way of life to which they are accustomed. Spanning world-renowned landmarks, modern business hotels,
idyllic beach resorts, authentic Rajput palaces and rustic safari lodges, each Taj hotel reinterprets the tradition
of hospitality in a refreshingly modern way to create unique experiences and lifelong memories.
Taj also encompasses a unique set of iconic properties rooted in history and tradition that deliver truly
unforgettable experiences. A collection of outstanding properties with strong heritage as hotels or palaces
which offer something more than great physical product and exceptional service. This group is defined by the
emotional and unique equity of its iconic properties that are authentic, non- replicable with great potential to
create memories and stories. Taj Exotica is our resort and spa brand found in the most exotic and relaxing
locales of the world. The properties are defined by the privacy and intimacy they provide. The hotels are
clearly differentiated by their product philosophy and service design. They are centered around high end
accommodation, intimacy and an environment that allows its guest unrivalled comfort and privacy. They are
defined by a sensibility of intimate design and by their varied and eclectic culinary experiences, impeccable
service and authentic Indian Spa sanctuaries. Taj Safaris are wildlife lodges that allow travelers to experience
the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer Indias first and only
wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience
based on a proven sustainable ecotourism model.
Upper Upscale Hotels (full-service hotels and resorts) provide a new generation of travelers a contemporary
and creative hospitality experience that matches their work-hard play-hard lifestyles. Stylish interiors,
innovative cuisine, hip bars, and a focus on technology set these properties apart.

The Gateway Hotel

(upscale/mid-market full service hotels and resorts) is a pan-India network of hotels and resorts that offers
business and leisure travelers a hotel designed, keeping the modern nomad in mind. At the Gateway Hotel, we
believe in keeping things simple. This is why, our hotels are divided into 7 simple zones- Stay, Hangout, Meet,
Work, Workout, Unwind and Explore. As travel often means more hassle than harmony, more stress than
satisfaction, modern travelers are looking for smarter choices. Driven by our passion for perfection, we
welcome our customers to a refreshingly enjoyable and hassle-free experience, anytime, everywhere. Offering
the highest consistency in quality, service and style we set new standards and take the unwanted surprises out

of traveling. Our warm welcomes make our guests feel at home, away from home and our crisp and courteous
service empowers them to get more done with greater effectiveness and control. And through our unrivalled
network we provide service that is effortless, simple, never overwhelming, always warm. Ginger (economy
hotels) is IHCLs revolutionary concept in hospitality for the value segment. Intelligently designed facilities,
consistency and affordability are hallmarks of this brand targeted at travelers who value simplicity and selfservice. Taj Hotels Resorts and Palaces is committed to replicate its domestic success onto international
shores with plans to build an international network of luxury hotels, which will provide an exemplary productservice combination and in the process create a global brand. The current international portfolio includes
luxury resorts in the Indian Ocean, business and resort destinations in the Middle East and Africa, serviced
apartments in the UK, the first hotel in Australia and three a top-end luxury hotels in the US.

Throughout the Companys expansion, its mandate has been twofold: to infuse a sense of Indian heritage and
culture within each diverse property, while also anticipating the needs and desires of the sophisticated
traveller. Over the years, the Taj has won international acclaim for its quality hotels and its excellence in
business facilities, services, cuisine and interiors. The Taj strengthened its presence in the Indian Ocean rim
with the Exotica Brand. The Taj Exotica was evolved as part of Taj Hotels Resorts and Palaces intent to
position it as a brand that is clearly differentiated by its product philosophy and service design. The Taj
Exotica Resort and Spa, in Maldives is centered on high-end accommodation, intimacy and an environment
that allows its guests unrivalled comfort and privacy. Taj Hotels further expanded its global footprint by
securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar
Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan. The most significant additions to
the portfolio have been The Pierre, the iconic landmark hotel on New York's Fifth Avenue, Taj Boston and
Blue, Sydney. The presence of Taj Hotels Resorts and Palaces internationally has been developed through a
network of Taj regional sales and PR offices in the United Kingdom, France, Germany, Italy, Dubai,
Singapore, Australia, Japan, Russia and the United States of America. At the Taj Hotels Resorts and Palaces
luxurious living and fine dining find common ground. Whether it is introducing exotic world cuisines to India
or taking authentic Indian fare to the world, the Taj Hotels Resorts and Palaces is renowned for the eclectic
culinary experiences it brings to its guests. Through a vast repertoire of award-winning restaurants, legendary
recipes from royal kitchens and celebrated food festivals, the Taj has pioneered innovation in fine dining
across the world. Taj Hotels also promise a whole new experience of tranquillity and total wellness, through

Jiva Spas a unique concept, which brings together the wisdom and heritage of the Asian and Indian
Philosophy of Wellness and Well-being. Rooted in ancient Indian healing knowledge, Jiva Spas derive
inspiration and spirit from the holistic concept of living. There is a rich basket of fresh and unique experiences
under the Jiva Spa umbrella of offering, Yoga and Meditation, mastered and disseminated by accomplished
practitioners, authentic Ayurveda, and unique Taj signature treatments. Royal traditions of wellness in service
experiences, holistic treatments involving body therapies, enlivening and meaningful rituals and ceremonies
and unique natural products blended by hand, come together to offer a truly calming experience. IHCL
operates Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault
Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and
Kochi, in Kerala.
IHCL also operates Taj Sats Air Catering Ltd., the largest airline catering service in South Asia, as a joint
venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

Additionally, it

operates the Indian Institute of Hotel Management, Aurangabad since 1993. The institute offers a three-year
diploma, designed with the help of international faculty and has affiliations with several American and
European programmes. CORPORATE SUSTAINABILITY AND SOCIAL RESPONSBILITY As a part of
Tatas; Indias premier business house; we; at Taj Hotels, have always believed in society and environment
being integral stakeholders in our business along with our shareholders, customers, vendors and others. Over
the last decade, the movement towards ecologically sound tourism has gained urgency and importance across
the globe and we recognize that responsible practices in vogue are as diverse as the geographies. We promote
corporate citizenship through our strategic public-private partnerships which encourage building livelihoods
of less-advantaged youth and women. The causes we promote include reducing malnutrition, promoting
indigenous artisans and craftsmen and enhancing employability of identified target groups by sharing our core
competencies as a leading hospitality company. We encourage training and development of differently abled
youth. We at Taj have the unique scope and opportunity to develop raw potential into a skilled workforce that
is immediately employable by various players in the industry. A majority of our community projects are
focused around extending our key strengths in food production, kitchen management, housekeeping, customer
service and spas to promote economic empowerment of candidates from vulnerable socio-economic
backgrounds. We are fully committed to the cause of building a sustainable environment by reducing the
impact of our daily operations on the environment and improving operational efficiencies, resource
conservation, reuse and recycling of key resources.

Our seventh Corporate Sustainability Report was

submitted to the United Nations Global Compact society in August, 2009. The United Nations Global
Compact is a strategic policy initiative for businesses that are committed to aligning their operations and
strategies with ten universally accepted principles in the areas of human rights, labor, safety & security,
environment and anti-corruption. This Corporate Sustainability report also serves as our GRI (Global
Reporting Initiative) as well as Triple Bottom Line report. The report focuses on identified priorities at IHCL
and responds to key stakeholder needs. We plan to continue and further strengthen our commitment to the
environment and societies in which we operate.
We believe in continuous learning and sharing and would be delighted to have your thoughts and suggestions.
EARTH In an endeavour to reinstate its vision and efforts to boost sustainable tourism, Taj Hotels Resorts and
Palaces presented EARTH (Environment Awareness & Renewal at Taj Hotels) this year. Implementing
schemes such as the Gangroti Glacier Clean-Up Expedition, as well as designated Earth rooms, which
minimise environmental impact, Taj is one of Asias largest group of hotels to commit to energy conservation
and environmental management. EARTH has received certification from Green Globe, the only worldwide
environmental certification program for travel and tourism. The Taj began a century ago with a single
landmark The Taj Mahal Palace Hotel, Mumbai. Today, the various Taj hotels, in all their variety and
historical richness, are recognised internationally as the symbols of true Indian hospitality. The Companys
history is integral to Indias emergence into the global business and leisure travel community; and looking to
the future, Taj Hotels Resorts and Palaces is well positioned to meet the increase in travel activity with the
rapid expansion of the Indian economy.

CHAPTER 2
LITERATURE REVIEW
A business must be viewed as a customer satisfying process, not a goods/services producing process.
Products/Services are transient, but basic needs and customer groups endure forever. Company should first
identify the need of a customer & then try to identify the potential user group. Each business unit need to
define its specific objective, once the business unit has formulated its objective, the business manager knows
the part of environment it needs to monitor to achieve its goal. For e.g. the hotel industry company need to
watch the various event happening in that particular city, current and new competitor, technological
development that might affect the marketing. In general business unit has to monitor key external macro

environment forces like demographic economic, technological, political/legal and social culture and
significant microenvironment actors like customers, competitor etc, that effects its ability to earn profits. After
seeing all the above aspects the next thing that has to be considered is marketing process.
The marketing process consists of "analyzing marketing opportunities, developing marketing strategies,
planning marketing programs, and managing the marketing effort".
The first phase should be to analyze an external, internal and long run opportunities in the market for
improving the performance. To evaluate its opportunity the company needs to operate a reliable marketing
information system. Marketing research is an indispensable marketing tool, because company can serve their
customers only by researching there needs and wants, their location, their visiting practices in the hotel etc. So
in my case I m performing the function of marketing information system to let the company know what is the
reason for the recession period in there company and how they can overcome to it.
The purpose of marketing research is to gather significant information about the marketing environment.
Company's microenvironment consist of all the players who effect the company's ability to provide a service
viz. customers and competitors. In macro environment it consists of demographic, economical, physical,
political/legal and social/cultural forces that affect its sale and profit. An important part of gathering
environmental information includes measuring market potential and forecasting future demand.
The next step is the marketing strategy; it is basically a game plan for how to achieve a particular goal of a
company. To transform marketing strategy into marketing programs a company must make basic decisions on
marketing mix, it also has to decide how to divide the various tools in the marketing mix. Marketing mix is a
set of marketing tools that the firm uses to pursue its marketing objective in the target market.
There are literally dozens of marketing mix tools. McCarthy popularized a four-factor classification of these
tools called the four Ps: product, price, place and promotion. Not all marketing mix variables can be adjusted
in the short run. Typically the firm can change its price, sales force size, and advertising expenses in the short
run. It can develop new products and modify its distribution channel only in the long run. Thus the firm
typically makes fewer period-to-period marketing mix changes in the short run than the number of marketing
mix might suggest. The most basic marketing tool is "product or service" the company's offer to the market,

which includes the product or service quality, design, features and branding. The company, which will provide
good service, will have a competitive advantage in the globally competitive marketplace. A critical marketing
tool mix is price, the amount of money that customers pay for the product or service. On the price the
company has to decide the discounts and allowances. Its price should be commensurate with the offers
perceived value. If it is not, buyer will turn to competitor's product. Place, another key marketing mix tool,
includes the various activity the company undertakes to make the product accessible and available to target
customers. Company must identify, recruit, and link various marketing facilitators to supply its services
efficiently to the target market. Promotion, the fourth marketing mix tool, includes activities the company
undertakes to communicate and promote its product to the target market. Company has to setup
communication and promotion programs consisting of advertising, sales promotion, public relation and direct
and online marketing.
Thus winning companies will be those who can meet customers needs economically and conveniently and
with effective communication.

CHAPTER 3
3.1 Objectives

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

To study the product strategy & price strategy

To study the sales promotion schemes in and outside Delhi.

To study the advertising policy.

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

To make a comparative analysis of marketing strategy of Hotel Taj Palace with Hotel Hyatt Regency.
This report has been written keeping in mind the objectives mentioned above.

3.2 RATIONALE AND METHODOLOGY

RATIONALE
This section describes why I have chosen the particular topic for making an organization research project,
what is the project undertaken and explain in brief the outline of the project. I am making a project on Hotel
Taj Palace The objective of this project report is to present an in-depth analysis of marketing strategy of a
company in the same industry which are comparable pertaining to marketing strategies adopted by them under
four different heads - Product, Price, Place, & Promotion. Along with this, it was important to critically
analyze the company with regard to their marketing policies and strategies.
There are certain factors, which influence me to choose a project in Hotel industry. First of all, I have an
attraction for glamour and I love to connect with it. Secondly, what attracts me is the tough competition, as
more international chain hotels are coming to India, so hotel industry is facing a tough competition. Third
factor is related with the incident of "World Trade Tower" attack in USA, which took place on 11th September
2001, due to which people have, low trust in flights, and therefore foreign tourists are decreasing in number.
Fourth factor is also of a similar type to the third factor, it is the incident which took place on 13th December
2001, in "Indian Parliament house" when a firing broke out there between terrorists and police due to which
some casualties happened, due to these factor foreign tourists have a threat in their minds, the number of
tourists has been decreased and now there is recession in Indian Hotel Industry. Therefore,I have decided to
choose Indian based hotel Taj Palace to analyze its marketing strategy and in keeping in mind all the above
factors recommend the company that what could be the strategies and how it can overcome the situation.

Under marketing, the areas that were to be covered were numerous. It was imperative to cover the process of
planning and execution of the concept, Pricing, Promotion, and the Distribution/ Place strategy. Also, the other
activities undertaken by the organization such as marketing research, planning, implementation, and control,
etc., were to be covered. Within marketing planning, various decisions such as those on target markets, market
positioning, pricing, distribution channels, physical distribution, communication, and promotion are extremely
important decisions that have to be made by the marketing managers of any organization and after getting
relevant information the findings have been analyzed and compiled, which highlights the area undertaken in
the Research of the Hotel.

METHODOLOGY
The study of the hotel is carried out from the Strategic Marketing point of view and analysis of the gathered
data is done in the light of academic knowledge secured from the Institute. After getting relevant information
the findings have been analyzed and compiled, which highlights the area undertaken in the Research of the
Hotel.
The Data hunting for the Project was conducted in various logical and systematic steps to obtain maximum
information on this context keeping the objective in the mind. Broadly speaking the data was collected from
one source only - Secondary. Well-drafted .Secondary information, which also gave immense data inputs, was
from brochures, pamphlets, In-house Journals & various other Magazines and Text books in this connection.

CHAPTER 4
MARKETING STRATEGY
4.1 Marketing Set-up
Both Taj Palace and Taj Mahal have a combined Sale & Marketing team. For operational convenience, the
company has divided the marketing operations into two types viz.,
Inbound
Outbound
The Inbound team is in charge of clienteles coming towards Delhi. They promote and market the hotel
products and services and other facilities only to those specific customers who intend to stay in Delhi. This
also assists the Sale & Marketing team in knowing what is the total market in Delhi and what percentage of
this customers stay with the Taj hotels in Delhi. The company can also study the percentage of repeat
clienteles, duration of stay, frequency of visits and also make future forecasts and project trends. This also
gives the company ample database of the incoming (potential) traffic to the city.
Similarly, the outbound team is in charge of potential customers going away from Delhi. The Sale &
Marketing team (Outbound) interacts with such customers and try to promote various Taj hotels outside Delhi.
The idea is to bring or retain business within the Taj Group of companies. The customers are made aware of
the Taj Group of Hotels and what comforts and Luxury they get within a specific budget. Thus the Outbound
team solely focuses their Sale & Marketing efforts at the potential customers going away from Delhi to other
cities within the country as well as foreign destinations where Taj has their properties.

The idea of bifurcation of the Sale & Marketing tasks into two categories of Inbound & Outbound makes the
operations simpler and highly efficient. But sometimes, sorting out the customers may not be completely
possible; in such cases both the teams are equally responsible to promote the products & services of the
hotels. The bottom line is - that the Taj hotels in Delhi and Taj Hotels in other parts of the country and the
world are with in the strong hands of these talented Sales & Marketing professionals who bear testimony for
the continued expansion and growth of the group over the years.

4.2 Product:
Hotel is a place, which offers boarding and lodging for a certain charge. The concept has changed over the
years from Home away from home to Office away from home. Broadly speaking, the product, which a
hotel offers, falls into two categories: Accommodation: - which includes Rooms, Food & Beverage.
Service: - which is an intangible product.
Food & Beverage - which is also a perishable commodity like a room, are served from different F&B outlets
like restaurants, coffee shops, banquets, rooms service, specialty restaurants, bars etc.
Accommodation: - Further classification of Accommodation would make the range of Products wider; The
Rooms could vary from a Standard deluxe room to luxurious Presidential Suites which differ considerably in
the facilities offered and of course the Tag or Tariff on them. The banqueting facilities, halls and conference
rooms also come under the ambit of the Rooms division.
Rooms that work smarter: The Taj Palace hotel has 421 guest rooms of which 381 are deluxe rooms and 40 are Suites. Guest rooms of
Taj Palace combine modern facilities with relaxing decor. Deluxe Business Floor Rooms are indulgently
comfortable whilst being, virtually, an office away from home. The Club Rooms of Taj Palace offers guests a

world of exclusive services and privilege. The Club floor rooms provide personalized services to the guests
round the clock, comfortable large areas, and the conference rooms suited to conduct private meetings of up to
ten persons are just a few facilities to talk about. Luxury Terrace Suites are spacious, individually appointed
with separate lounge, dining and work areas and a terrace garden. The Executive Suite combines luxury and
modern convenience for excellence.
The Standard rooms and deluxe rooms offer complementary airport transfer, complementary breakfast, inrooms fax machine and butler on call. Both Standard and Deluxe rooms are now equipped with Flecon
System through which the guest can regulate the air-conditioning and light intensity in the room, obtain
World Time and operate the night light at the flip of a button. E-mail and Internet can be accessed in both the
Standard and the Deluxe Rooms.
In the days gone by, the invading armies came from the Northwest. But today they come from all over the
world. New Delhi, Indias capital city is a magnificent tourist attraction and important trading and commercial
centre. The Taj Palace Hotel is the most distinguished residence in New Delhi for Heads of State and
Corporations, Business tycoons and Luxury tourists, offers a spectacular choice of accommodation.
This session would list below the product and services offered by Taj Palace Hotel and what makes them
unique from the rest of the hotel \s, whether it is the rooms or the service.
The Taj Club: It is a known fact that a business traveler is a much-pampered person indulged with comforts and
conveniences unheard of even a decade ago. However a yearning has undoubtedly arisen for a special
privilege, an inner sanctum, an Exclusive Club. Born of desire, The Taj Group of Hotels presents the Taj club,
which offers unique world of facilities and privileges, both essential and extraordinary.
The Taj Palace, ND accommodates two floors of club facilities, linked by a grand staircase. The Club Rooms
are inviting and exude a subtle touch of extravagant. The Club Lounge here offers the modern businessman
delighting facilities and services which are listed below,
The Club Complementaries:

Complimentary Airport Limousine transfer.

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

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

A welcome drink on arrival.

24-hr valet service.

A complimentary deluxe Continental breakfast in Taj club Lounge.

Complimentary cocktails with a selection of hors doeuvres in the Taj Club Lounge.

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

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

Complimentary use of gymnasium, steam and Jacuzzi.

A complimentary bottle of imported wine.

Complimentary chocolates, fresh flowers and a fruit basket.

Personal electronic safe in the room.

Personalized stationery

A choice of newspapers and magazines.

Rooms contribute to 70% of the total revenue where as F&B (banquets, restaurants and other outlets)
collectively contribute only 30%. Also the profit margins for the rooms are much higher as compared to a
mere 7-10% from the Food and Beverage section.
Broadly speaking Taj Palace has five categories of rooms,
Standard Rooms
Superior Rooms
Deluxe Business Rooms
Taj Club Rooms
Suites Rooms ->

Executive Suites

Deluxe Suites

Luxury Suites

Presidential Suites

The distinction between the Standard room and the most expensive Presidential Suites is the Value addition
and imagery and also the premium tariff rates associated with the Presidential suite. Facilities like
complementary breakfast, Limousine transfer, Happy hours, Complimentary valet service and scores of other
services accompany these rooms based on the category. Guest rooms combine modern facilities with relaxing
decor. Deluxe Business Floor rooms are indulgently comfortable whilst being, virtually, an office away from
home. The Club Room guest enjoys personalized service round the clock. The Executive suite combines
luxury and modern convenience par excellence. The Luxury Terrace suites are spacious, individually
appointed with separate lounge, dining and work areas, and a terrace garden. The Terrace suites are ideal for
Al Fresco dining.
The comforts and facilities of all 421 guest rooms and luxury suites are splendid. A second look reveals that
each Deluxe Business Floor room is a modern business centre. so too, the hotels exclusive Club Floor Rooms.
On request, in-room fax, E-mail facility, laptop computer, background information on major Indian
industries, plus on-line accessibility to world business information. Guests enjoy modern comforts and warm
hospitality in all 421 rooms and Luxury suites. Service is of the highest order as is to be expected, around the
clock.
Business Centre: It offers several useful facilities 24-hrs a day, seven days a week. These include Facsimile, Internet, and Email, Color photocopying and legal library, as well as laptops, city pagers and mobile phones on rental basis.
Taj Palace Business Centre is designed to give the best to the business community who do require
sophisticated communication facilities and other gadgets to stay connected to the rest of the world while at the
Hotel. With no exaggeration it could be said that the guest gets the best of best services and facilities which
are more than necessary for a modern business man, and also feel at home while at work. The hotel calls this
concept An office away from home.
Banquet Facility: The hotel provides facility for orchestrating parties and banquets, conferences, seminars and symposiums. Taj
Palace has 11 Banquet halls with a capacity of 15 to 1600 persons (Auditorium Style) or 15 to 2500 persons

for Cocktails/ Receptions. It also has two huge Lawns to organize Fork Buffet / Standing Buffet also for
outdoor functions. The conference aids includes simultaneous translations in 5 languages. The banquet halls
of various size, decor and interiors, capacity suit all kinds of occasions including receptions, marriage parties,
conferences, meetings, get-togethers, cocktail parties and scores of other functions. The banquet halls are very
much flexible for various types of seating arrangements and set-ups like Fish-bone, Theatre style, Class room
style, Auditorium type etc. the Banqueting facilities offered by the hotel could be matched to any other
competing hotels and is par excellence.

The Food & Beverage:Division accounts for roughly 30% of the total revenue earned by the hotel. There are numerous Food &
Beverage outlets, but broadly they could be segregated into
Food & Beverage Outlets: Restaurants

Coffee Shops

Bars

Room Service

Banquets

Taj Palace has four Restaurants and one Night Club and a Bar. To name the few are Orient Express, Isfahan,
The Tea House of the August Moon, Handi and My Kind of Place, which is the discotheque and the hottest
and most wanted place in the city, especially among the youth.
Tea House of the August Moon: The Taj Palaces Chinese specialty restaurant is the in place for the gourmets and adds to the unabashed
delight of aficionados of this great cuisine. Its Chinese Combo-Buffet Lunch includes a choice of starters
presented as a buffet. The Combi (nation) Buffet offers the guest a choice of soup, served steamy hot. There
are six salads and two vegetarian and two non- vegetarian specialties, rice and noodles. There is a different
chicken dish on offer every day and for the second meat dish, the guest could opt for pork, beef or fish. The
meal could be topped with a delectable dessert. The menu for the Combi-Buffet Lunch charges daily.
Orient Express:Orient express is the only restaurant in the country to feature in the 50 great Hotel Restaurants of the World.
It is a theme restaurant and the entire set-up is that of a train and any guest who aboard Orient Express would

get lost in the sheer opulence of the legendary train, recreated down to the minutest detail. The Exquisite
delight the menu offers is savored by anybody with a palate for food. It also serves hard drinks and acts as a
bar for the hotel. Orient Express offers an excellent selection of premium red and white wines, champagnes
and house wines.
Handi: The Handi is one of the most popular Indian restaurants in the Capital city. The restaurant offers both Ala
Carte and Table-d- hotel menus to its guests. The hotel organizes various food festivals (Indian) and takes
Handi as a platform for its promotional schemes. The decor and ambience of the restaurant, coupled with the
mouth-watering Indian specialty dishes makes the dining experience a memorable one even to a gourmet
critic. It offers specialties from Northern as well as Western India.

My Kind of Place: It is the most wanted Discotheque in the city and it is enjoyed by people of all ages. The DJ plays music on
request, which includes- Rap, Reggae, Techno, Pop, Soft, Fast numbers and also Heavy metal on request. The
songs could be dedicated to anyone as desired by the guest. Food & beverages are also served out here to
rekindle the lost energy at the dance floor.
Taj Fitness Centers: Executive stress- In todays tough, demanding world, it is not just a buzz-word (Fitness). It is a daily
occupational hazard. Hectic schedules, constant travel, and job pressures - not to mention relentless routine all add up to rising levels of physical exhaustion and mental tension. No wonder keeping fit is a part of every
busy executives agenda.
The Taj Group of Hotels gives it due priority by incorporating full-fledged Fitness Centers in all Taj Luxury
hotels in Metro-cities. Taj Palace too has a fitness centre which could be availed by her guests. Complimented
by facilities for a variety of out-door sports and swimming. The Fitness centre offer the guests many different
ways to work out - Weights, Dumbbells with bench, Shoulder press, Pulley weights, Abdominal board,
Treadmills. A Step Climber with a monitor. The fitness centre at Taj Palace also offers a choice of Aerobic
exercise tapes.

Other facilities include Steam baths, Jacuzzi and Chilled showers. Trained Masseurs are on hand to give the
guest a soothing yet invigorating body massage with pure olive -oil, which is equated to 45 minutes of sheer
bliss. The fully air-conditioned, richly carpeted fitness centers, all gleaming marble and granite, are open all
the seven days of the week. Its facilities are available to all resident guests of the Taj Palace hotel.
Other Services & Facilities:

24-hour room service

Free safe deposit lockers

Express laundry/ dry cleaning

Purified water supply

Doctor-on-call

Full-equipped Business Centre

24-hour fax/ telex facilities.

3 Meeting rooms

Work station availability

Laptops on hire

Secretarial service

Knight Ridder on-line service

Currency Exchange

Travel assistance

Car hire service

24-hour Coffee Shop

6 Restaurants & Bars

Night Club

8 luxurious Banquet Rooms

Shopping arcade

Fitness Centre

Beauty shop

Arrangements made for golf and tennis

4.3 Place:
Location/ Place play a significant role in the type of clientele who would be using the product. The very type
of a hotel is determined by its location. For example - A hotel in a highway is a motel, similarly there are
beach hotels, floatel, tourist hotel, transit hotel, and business hotel etc. convenience is another factor
associated with the selection of a hotel (location). A guest would not like to stay in a hotel, which is 50-100
kms away from the city when he is come for some business in the city. He would look for his convenience and
how well it is connected to the rest of the city and its proximity to the transportation terminals like airports,
railway station etc.
Taj Palace is ideally situated amidst six acres of landscaped greenerys and is only 10 minutes from the
Airport and 10 minutes from down town. To be precise the hotel is 13 kms from the International Airport and
a minutes drive from Daula Kuan, in the Sardar Patel Marg, which is a traffic free road with not much of
traffic bottlenecks. The hotel welcomes with a longest driveway entrance in the city and lush green meadow

and garden, which is a magnificent sight. It also allows easy entrance and exit for cars and other long vehicles,
unlike other hotels in the city where there is too much congestion, clustering of vehicles and irritating
bottlenecks. The location of the hotel is spectacular and it also offers a fabulous view, both from inside and
outside the hotel.
New Delhi became the Capital in 1911 - when the British administrators moved from Calcutta - and the
Capital of the Republic, since independence, in 1947. In fact, modern Delhi embraces the foundations of
seven earlier cities dating back to the eighth century. There are many tourist sights within easy reach of the
hotel: temples, tanks, walls, ruins, gateways and citadels, of which the most famous is the Red Fort.
Proximity to Embassies: All the embassies and High Commissions of the countries of the world are spread in and around
Chanakyapuri, which just five minutes from the Taj Palace hotel, which is why most of the Ambassadors and
high Commissioners prefer to stay in this hotel.

Security: Taj Palace is located in the South Delhi, distant enough from the commercial hub of the city, which makes it
the safest hotel in Delhi. For example - A hotel like Hyatt which is surrounded by tall building could be an
unsafe place for a Diplomat whose life is at threat as he could be shot operating from any of these neighboring
buildings. Also, Hyatts entrance is so close to the road, a car planted with a bomb can cause tremendous
damage to both human and property (in the worst of the cases). Where as Taj Palace is far from such kind of
threats, thanks to its strategic location.
Distribution: Taj Group of hotels has three properties in Delhi of which two are in the Taj Luxury hotels category.

Taj Mahal

Luxury hotel

Taj Palace

Luxury hotel

Ambassador

Budget hotel

The strategic spread of Taj hotels in the Capital city gives the group an edge over its competitors like Hyatt or
Oberoi, which are single properties in the city. Also these hotels cater to customers with different pocket-sizes.

It is also in Tajs advantage that a guest who wishes to go to other cities other than Delhi would like to move
with a chain rather than select separate single properties. The importance of distribution could be emphasized
by the above example. Thus the organized distribution of Taj Group of hotels offers to a variety of pockets and
also number.
Delhi has 2200 rooms in the five star categories as the total market and both Taj Palace &Taj Mahal combined
have 300 + 421 = 721 rooms which is a good one third of the total market. The prominence of distribution
need not be further stressed and emerges a clear winner when it comes to the spread and coverage of segments
and it has no competition in India (Leave aside Delhi).
The Taj Group is Indias largest and finest hotel chain offering 48 hotels in 34 locations across the subcontinent. This growth has been diversified, as it has been impressive. In addition to superlative Luxury
hotels, the Taj Group includes Business hotels, Beach Resorts, Palace hotels, Garden retreats and other
comfortable accommodations. Taj leisure hotels are situated all throughout India. In south zone there are 17
Leisure hotels, in the North zone there are 11 hotels, in the west zone there are 6 hotels. In the sub-continent
there are 5 Taj Leisure hotels situated in Colombo, Bentola (Srilanka), Maldives and Kathmandu (Nepal).
There are 8 Taj Business hotels in India situated in Bangalore, Hyderabad, Aurangabad, Nashik, Vizag,
Ernakulam and Calicut.
Internationally, the Taj Group has a few properties in key cities like London, New York, Washington DC,
Chicago and locations in the Middle East and in Africa.
The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India, together
with superb comforts and modern facilities. All of these combine to make The Taj Experience a must.

4.4 Promotion: Taj Groups Promotional activities are being taken care of by Rediffusion and TSL (Tata Services Ltd. for Print
Ad. Taj Group has been using high decibel Promotion program to maintain its already renowned image and
also to counter competition. Taj Palace has an effective Promotion Mix. They carry out advertising, sales
promotion, publicity as well as PR activities. Advertising is done maximum through press, magazines and
direct marketing i.e., mailing and personal meetings and minimum advertising is done through TV The
objective the company wishes to achieve through advertising is Image Building. There is no specific period in
the year when they advertise. In fact the company advertises through out the year. Since the company is
advertising through out the year, the Advertising Budget also remains constant or same for a financial year.
But much before getting in to Taj Palaces Promotional activities, which is combined with Taj Mahal, Delhi
also for building the Taj brand as a whole, it is desired that a few lines on the Promotional Program of a
hotel as general is listed down for better comprehension. The subsequent section would detail the Planning
and Execution operations required in making the promotional effort fruitful and also it highlights the need of
having a separate promotional strategy for progress and survival.

Promotional Frame work:The groundwork involved in advertising planning and decision involves two major factors viz. Internal and
external factors. Internally, situation analysis, the marketing program and the advertising plan are the key
consideration. These three legs of advertising planning concern objectives setting and market identification,
message strategy and tactics, and media strategy and tactics. However, this advertising plan flows from the
overall marketing program which place the advertising plan in the context of the other marketing elements
and, a more general conceptual understanding of how advertising works. The marketing

plan itself is

developed in response to a situation analysis, based on research. Once it is developed, the advertising plan is
implemented as advertising campaign, in the context of social and legal constraints and with the involvement
of the advertising agency.
Primary Research: The planning and decision - making process begins with a thorough analysis of the situation. Situation
analyses involve an analysis of all important factors operating in a particular situation. For this new research
studies are undertaken keeping in mind the company's history and experience. For advertising planning and
decision-making, the principal thrust of research efforts are based on market analysis or more broadly, this
analysis of consumer motivation and behavior with respect to the product. Situation analysis is based in
conventional wisdom, managerial experience of the creative team's inherent imaginative abilities. But the
current market and environment condition is based adequately on research. Such research comes in from the
company and the advertising agency's research efforts (secondary data source obtained from research
suppliers). Thus situation analysis forms the foundation for a well- developed marketing program and the
cornerstones for developing an advertising strategy.
Planning & Execution: The marketing program includes planning, implementation and control functions for the company or in
particular the decision - making unit. The marketing plan include a statement of marketing objectives and in
particular the strategies and tactics to reach those objectives. The marketing objective identified the segments
to be served by Taj Palace and how it goes on to serve them. The needs and wants of consumers on which the
company concentrates are worked out identifying and analyzing them when a marketing plan is prepared.

At Taj Palace, the marketing Manager (who deals with advertising and publicity) spends a considerable time
pinpointing the exact source of poor sales, before deciding that the core problem is adequate or poor
advertising or promotion. The marketing plan thus is based on specific problems or opportunities uncovered
for the service by situation analysis. It serves as a response to those problem or opportunities by allocating the
marketing budget (and the development of specific plans for various components of the marketing mix).
Conceptually, the budget is divided so that the marginal value of an extra budget increment in some for all
components of the mix. The amount of expenditure is shifted to the area that produces the higher incremental
sales.
The Promotional Plan:The Promotion Plan is developed once the overall marketing plan has been created. Within the marketing
plan, advertising plans and decision making focus on three crucial areas.

Objectives and target selection

Message strategy and tactics

Media strategy and tactics

Every advertising plan reflects planning decisions and commitments concerning each of the above three major
components. Planning as a process involves the generation and specification of alternatives. Decision making
concerns the choice of the best alternatives. Alternative with respect to objectives and target marketing are
carefully evaluated and specified. The copy alternatives are developed and analyzed with respect to content
(message strategy) and execution. The decisions more at this stage take

the form of advertising campaign

adopted in a particular situation. Finally, media alternatives and decision are made on how much money to
spend (media strategy) and where to allocate it (media tactics). In each planning and decision making are
involved.
Target Selection:The pivotal aspect of any management plan is the development of operational objectives. An operational
objective provides useful criteria for decision making, generating standards to measure performance and
serving as a meaningful, communication device. This objective helps attitude. Moreover, the advertisement
should) be targeted to a selected group (target market) for which it becomes easier to develop relevant
stimulating copy. Besides this, the company has to develop several
segments of market.

campaigns, each directed at different

Message strategy and Tactics:The actual development of an advertising campaign involves several district steps. The marketing manager
decides what the advertising is meant to communicate by way of benefits, feeling, brand, personality or action
content. Thus when the content of the campaign has been decided, decisions are made on the best & most
effective ways to communicate the content. One of the first exceptional objectives is the creation of an
advertisement that should gain attention. Advertisements are created that capture and retain the consumers
attention because in an age where thousand of advertisements compete for attention and where consumers can
flip television channels with a mere flick of the remote control. The content and tone are eventually translated
into specific advertisement. Throughout the process, decisions are made concerning with different copy
approaches and script. Assessments for 'good' copy are not merely subjective and therefore several kinds of
research- based tests are used, in the laboratory or in the field to enable a creative team to check on the
evolving campaign continually against its objectives.

Media strategy:Media strategy concerns about the decisions on how much money to spend on an advertising campaign. It
involves with detailed specification of what the company wants to achieve with advertising and the resources
necessary to accomplish them. It applies to the allocation of an advertising budget across media types and
within each type. The media allocation decision and media planning is done with the help

of mathematical

techniques and computer programs. One is the type of vehicle audience of the campaign.
Image Building:Advertising is the missing link between Brand attributes and the customers perception, between product
features and need fulfillment, between benefits and value. Even if your service has been designed to target
your customer's wants with pinpoint precision, it's only your communication with the customer, in general
and advertising as its most potent form, in particular, that will inform her just how your are trying to
provide value to her. The advertising must deliver unmatched value to the customer. Even the most cogent,
appealing, captivating, entertaining and memorable advertising can still fail to enhance customer value if it

cannot improve the customer's understanding of the need-real or emotional- that the service being
advertised will fulfill her needs . For that your advertising must provide information telling the customer
something she did not know. It must raise your customers interest levels. And it must induce a change in her
attitude, which can be translated by additional marketing into a reinforcement of existing behavior or a change
in it, so that she buys your services. Only if these criteria are fulfilled your advertising will raise your service
to the levels of all competing products undifferentiated from one another. "Advertising is what gives the
service its life cycle and creates it into a brand". One of the Jackpots in the search for a value differentiator
for your brand, could be the very experience of the using the service were competing service brands
converge in terms of tangible attributes and benefits, it is often the largely emotional experience of using
the service that can provide additional value to your customer.
The task for the advertising develops and communicate the associations that make for a richer, warmer and
more exciting brand usage experience , transcending a mere objective description of the brand attributes.
When the value that your product delivers is intangible, the real differentiator

may lie in the emotional

extension.

Advertising Exposure:Considering the splintering of customers into different segments, narrow casting, as opposed to reaching a
broad audience - can ensure that your message reaches by and large only those people that it is intended
for. Once you have found a medium that reaches your key customers you can intensify your communication.
That is the strategy used by Taj Palaces communication division when media planning was undertaken in
India. Having narrowed its target group down to corporate class and executives who use the hotels services
and foreign tourist, Taj Palace managed to whittle down the original list of 15 publications that appeared to
match the advertisers needs to just four . For, these were the publications whose contents suggested that
the most avid readers would match either of the two customer profiles that Taj Palace was targeting for its
services. In the process not only were media costs lowered, but more crucially the advertiser was assured
that readers would indeed allow the ads to register in their minds, instead of trashing them. This did not come
out of syndicated media research. It came from trying to understand the consumers. For ascertaining that the
target subjects attention is turned to the advertised message, you must pick a newspaper page, or any other
media that has already put her in a highly receptive frame of mind. Sure, snappy creative work can grab the

attention of page turners, but media planning can add value by selecting events that engage the attention of
their audience - preferably towards a subject that will leave them primed for a message for your product. Taj
has been extensively using Print Media to run its campaigns, and also the Television is used to promote its Ad
Campaign viz. Your Face, which is one of the most popular ads in the TV.
Comprehension & Attention:The process of comprehension of your communication if achieved by any integration between the customers
existing knowledge and the new knowledge that advertising provides. The contribution of media planning.
The timing of exposure to the advertising can ensure that the information content is lodged in the viewers
mind, allowing her to make the connection with her own knowledge - base.
The penultimate link in the chain, that of attitude or behavior changing acceptance, is forged in the
customer's mind by her cognitive or affective responses - or both - to your advertising. While the former
consists of the thoughts that occur during the comprehension stage, the latter takes the form of feelings
and emotions. Both, accepting separately or in concert, lead to an acceptance or rejection of your ad's claim of
fulfilling her needs. The crucial role of value added media selection here is to provide a vehicle that perfectly
matches which ever of these two responses the advertising tries to elicit. For instance, event offers the perfect
setting for eliciting the affective - or hot- responses while print is better suited for appealing to rational or cold
responses. It is in ensuring the marriage of objectives between advertising and media planning that the success
of communication lies. And as ever newer media planning opportunities burst onto the horizon
Promotion at Taj Palace: Advertising is done maximum through Press, Magazines, and Direct Marketing i.e., Mailing and Personal
meetings and minimum advertising is done through the TV. The section of the society or the target segment
for the Taj Palace hotel is the Business and the Elite segment. The hotel gets the maximum business from the
Business class. Advertising efforts made by Taj also involves receiving feedback from the customers through
mailers, direct face to face contact with them and by maintaining a register wherein the customers would give
their suggestions. All this is done to measure the effectiveness of Advertising campaign. The maximum % of
clientele they get is from the Business Class then foreigner and lastly from Holidayers. Ad agencies employed
by the company for designing their Ad campaigns and running the promotional activities are- Rediffusion and
Lintas. There is no specific period in the year when they advertise, in fact the company believes in scheduled

advertising campaign that is through out the year. Since the Advertising is done through out the year the Ad
Budget also remains same through out the year. For instance, the Handi restaurant comes out with different
promotional schemes and is advertised in the Print medium. This is a recurring expenditure to the company all
the scheme might change within a stipulated period of time. The Taj Palace Hotel also promotes its only
discotheque MKOP through out the year. The advertising done is targeted only to certain segment of the
society and it communicates only with customers and very little advertising is done to the rest of the public.
There is no specific appeal on which the advertisements are worked upon.
The advertising

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

Marketing Manager. Other Managers such as Event Managers, Publicity Managers and Sales Mangers also
work closely as a team to make the promotional efforts more synergetic.
Advertising done by Taj Group of Hotels is at the National and International level. In off seasons the general
theme of the advertisement is informative and during Shoulder seasons, the theme of the ad is conceptual like
New Year during December.
Sales Promotion is done throughout the year. There are different sales promotional policies for

Rooms Division

Food & Beverages

Minor departments like Laundry etc.

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

During off- season special discounts are given to regular clients and one time guests through different
pricing schemes. They also carry out promotional deals.

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

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

The company also extensively make use of Brochures, flight Journals, Jingles on FM, Mailers to
regular guests etc.
Thus to sum up Taj Palaces Promotional efforts and strategies is something to be talked about and has been
exemplary over the years

4.5 Pricing:Pricing is the most important component of the Marketing Mix. The very purpose of is maximization of
revenue, to generate profits and expedite realization of returns on investments. Speaking interns of hotels,
which offers a wide range of products and services, the pricing holds tremendous significance. It is a simple
tag but a complex concept as it reduces intricate needs and wants to just numbers. All the 3Ps of Marketing
actually gets translated into this P. Price is the ultimate Transaction border Point between a corporation
and its customer. An organization myriad costs get converted to Price and customers value perceptions gets
reduced to price and the transition happens. The factors which determine Pricing can be broadly classified
into three, viz., Cost, Demand and Competition. When computing the cost of a particular product or service a
series of calculations needs to be carried out. To exemplify how the costing of both product and services are
arrived at, two separate cases would be dealt with below, For instance a guest who walks into a coffee shop
and orders for a cup of coffee ought not to get horrified by the exorbitant bill of Rs. 50 for a standard portion

of 120 ml. The fact is that , the guest pays not just for the generic product ( coffee ) which would cost the
company a mere Rs. 3 per portion, but he is also required to pay for the ambience which is offered to him and
of course the service ( 5 star ) which goes with it. To elucidate further on this front, let us get a little incisive
and find out how much does it costs the hotel to Set.-up a restaurant which caters to 100 pax. The level of
investment chiefly depends on the location of the hotel and how much area is occupied by the restaurant in
question. The next itenery in the costing is what is the amount of money pumped into making the four walls
and the roof of the restaurant into reality. The cost of interior decorations and other aesthetically augmenting
features needs to be added. The cost of designer chairs and tables, chairs and side stations are not too meagre
to be neglected. The amount spent on lighting, both direct and diffused and other ornamental illumanaries too
contribute to the final cost. Last but not the least the cost of maintaining manpower and other variable cost are
of prime importance. Thus setting up a restaurant from the conception of a theme to the final completion and
there after the operation involves an exponential sum. To break-even these high investment within a stipulated
time requires management to charge a much higher figure in relation to the actual food cost. Thus the
allocation of the total set-up cost of the restaurant to each individual product demands complex and intricate
calculations. Finally the amount of Rs. 50a guest paid for his coffee is highly justified by the fact that all those
above revealed cost needs to be realized from the end user for the very survival of the hotel. Another
important cost escalating factor in terms of five star hotels is the levy of sales tax and an additional
expenditure tax of 10% which is otherwise known as tax on tax. A culmination of all these described costs
plus Tax components, plus the Profit margin speaks for the final pricing of the product. Speaking about the
rooms, which is a highly perishable commodity as a room not sold a day would result in the revenue loss for
the day from that particular room. It costs the company on average Rs. 90 lacs for a room. The cost includes
the cost of land, building, Tax given to the DDA, fuel coat, coat of Manpower, life expectancy of the product (
the room as a whole as well as the various giveaways, room supplies, fittings, furnitures, telephones,
television, mattress, bed sheets, day covers, curtains etc. For example, a single bed sheet costs the company
Rs. 900 and it could be used for only 8-10 times as, that is its perceived life. Thus keeping all these factors in
mind the final cost of single room is arrived at. Also the Rooms Division is the major revenue contributing
department in a hotel. The occupancy of the hotel determines the final costing. For example, if Taj Palace has
to have 100 rooms and only 80 rooms are occupied on a single day. This means the occupancy of the hotel is
80% or stated differently 20 rooms do not contribute a single penny to the hotel on that given day.

4.6 SWOT ANALYSES:

STRENGTH AND OPPORTUNITIES:

Large conventional banquet facility.

Large room area.

Close to the airport.

Security wise strong.

Charm property, which has goodwill in the market.

Location is good.

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

Strong hold on embassy business.

WEAKNESS AND THREAT:

Inadequate parking space.

Maurya Shereton location's threat.

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

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

Radisson only International chain Airport Hotel in Delhi.

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

4.7 COMPETITVE ANALYSIS:Hotels closest competitors are those seeking to satisfy the same customers needs and his needs, and similar
offer. In the niche market, therefore it is important to identify closest competitor.
Presently Hotel Taj Palace is receiving the competition from mainly the following Hotels

Hotel Intercontinental.

Hotel Radisson.

Hotel Maurya Shereton.

Hotel Hyatt.

Hotel Imperial.

Hotel Le Meridian.
Among all these Hotels Taj Palace is having a closest competition with Hotel Hyatt, so i

am doing a

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

Taj Palaces Customer Mix is weighed in favor of executives of India while it is balanced between
Indian Executives and Foreign Travelers in Hyatt.

Hyatt being a more global brand than Taj, the choice of Hyatt is higher over Taj among the foreign
travelers. This brand superiority of Hyatt among the foreigners is substantiated by the fact that, the foreign
occupancy in Hyatt is around 70% as compared to Taj Palaces 50-55 %.

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

Taj Palace, being a part of an Indian Chain of hotels, the Clientele for Taj Palace are those who wishes
to travel to other parts of India, so that they can get the benefits of moving with a chain. Conversely, Hyatt
scores less on this front as it is a Single Property in India at the moment.

Taj Group of Hotels has sufficient spread, and this has infact being one of reason for their preference
for the Taj Group of Hotels for conferences. On the other hand the Hyatt does not have sufficient spread in
India.

In the Pricing front, Hyatt offers more premium rates than Taj Palace and for the same reason Taj
Palace is preferred to Hyatt by the Domestic clientele. Taj Group of Hotels has more flexible rates and
therefore is said to be less expensive for conferences than the Hyatt.

Hyatt offers more attractive and innovative packages to the foreign travelers, although both the hotels
practice Dual Tariff Rates.

CHAPTER 5
CONCLUSIONS

Hotel Taj Palace:Taj Palace is located 10 minutes from the international airport of New Delhi, and 10 minutes from the city
centre, TPH in one of the most posh areas of New Delhi with many Foreign Embassies and High

Commissions surrounding it. The very right kind of place to Target its desired customer i.e., the Upper-upper
class.
TPH has around 700-800 employees working for it day and night providing the ideal services that are required
in the hotel industry.
TPHs promotional activities include print media like news papers, magazines etc. Like Hyatt, TPH too have a
very well maintained inventory of its regular guests. They send New Year wishing cards, invitation on
different celebrations, etc to their guests.
TPH in its line have around 421 guest rooms, very well decorated. There are other services and facilities like
free safe deposit lockers, express laundry/dry clearing, Doctor on call, 3 meeting rooms, laptops on hire, night
club, car hire service, travel assistance, currency exchange, conference

aids including simultaneous

translation in 5 languages etc.

The decor of the TPH is amalgamation of Indian traditional and modern furnitures. It has beautiful paintings
of every type which augment the ambiance of hotel. The hotel has 6 Restaurants serving Indian, authentic
Sichuan cuisine and The Orient Express serving the European cuisine.
The hotel also boasts of a private theater. The Taj Group of Hotels is Indias largest hotels chain offering 48
hotels in 34 locations across the subcontinents

KEY ISSUES:

Taj Palaces Customer Mix is weighed in favor of Indian Executives.

Foreign occupancy in Taj Palace is 50 to 55 %.

Taj Palace caters more to the Business Executives.

Taj Palace, being a part of an Indian Chain of hotels, the Clientele for Taj Palace are those who wish to
travel to other parts of India, so that they can get the benefits of moving with chain

Taj Group of Hotels has a sufficient spread, and this has infact being one of reason for their preference
for the Taj Group of Hotel for conference.

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

Taj Palace use to practice "dual tariff" rates

CHAPTER 6
RECOMMENDATIONS
Strategies Taj Palace can adopt to benchmark its product against competitor

Targeting the delegation and dignitaries of different countries.

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

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

Aggressive selling and increasing the cliental base through loyalty programs like Gold passport and
Private Line (various point accumulated against the stay of customer for which he/she is rewarded various
discounts, gifts, stay free for various nights etc).

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

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

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

Carrying on sales blitzing in other metros.

Relationship marketing with the in-house guests.

Telemarketing can too be followed religiously.

Same monthly / fortnightly magazine should be introduced which keeps the clients informed of
various happenings pertaining to the Hotel.

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

To retain the loyalty of customers personal touch and customer satisfaction should be priority and
therefore offer them greater personalize service and take it to higher level than at present.

CHAPTER 7
LIMITATIONS OF THE STUDY

BIBLIOGRAPHY

Kotler, P. Marketing Management.

In house Journal.

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http:/www.tajhotels.com/

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

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