SERVICES RETAILING: HOSPITALITY INDUSTRY

Presented by: Chhaya Arrawatia (07) Devika Bharadwaj (09) Priya Jain (17) Miheer Khandeparkar (21) Parveen Shabnam (39) Veda Shah (43)

ANCIENT INDIA
Guesthouses

Beginnings and Evolution

AFTER COLONIALISATION
Mostly private entrepreneur owned, not by companies

Beginnings and Evolution

AFTER COLONIALISATION

Important hotels of that period:

The Taj Mahal Hotel, Bombay The Grand, Calcutta The Savoy, Mussourie

Beginnings and Evolution

POST INDEPENDENCE

Government recognised importance of tourism for the economy Companies, such as Oberoi, adopted franchising practices, introducing international chains

Beginnings and Evolution

TODAY

Both Indian as well as foreign brands have significant presence in the market Some of the brands present in India are:

Beginnings and Evolution

AS OF OCTOBER 2013:
Market Size: $117.7 billion FDI Inflows (since 2000): $6754.9 million Total number of rooms: Over 200,000 Average Occupancy: Over 80% Growth in Foreign Tourist Arrivals: 12% (Compared to projected figure of 5-6% for the world)
References: http://sluphconsultant.com/?p=86 http://www.ibef.org/industry/tourism-hospitality-india.aspx

Key Statistics: Indian Hotel Industry

Trends (in India)

Greater focus on budget hotels Increase in medical tourism Shifting attention to Tier II and III cities Spurt of International brands Innovative Operating Models
References: http://www.researchandmarkets.com/reports/1948962/

Takeaways
Costs must be controlled while providing best-in-class service Services offered must be tailored to clientele Services must differentiate

Key Trends in the Hotel Industry & Takeaways

SERVICES OFFERED BY HOTELS

Primary
Accommodation Dining Housekeeping

Value Adding
Business Centre Parking Concierge Forex Spa Others

Services

Worth Rs.75000 crores, with growth rate of 7% annually More than 1.5 million outlets (restaurants) Organised: 14% Organised sector growth: 16% annually
Segments of the restaurant industry:
Quick Service Restaurants

About the Indian Restaurant Industry

Worth Rs.75000 crores, with growth rate of 7% annually More than 1.5 million outlets (restaurants) Organised: 14% Organised sector growth: 16% annually
Segments of the restaurant industry:
Casual Dining Restaurants

About the Indian Restaurant Industry

Worth Rs.75000 crores, with growth rate of 7% annually More than 1.5 million outlets (restaurants) Organised: 14% Organised sector growth: 16% annually
Segments of the restaurant industry:
Cafes

About the Indian Restaurant Industry

Worth Rs.75000 crores, with growth rate of 7% annually More than 1.5 million outlets (restaurants) Organised: 14% Organised sector growth: 16% annually
Segments of the restaurant industry:
Fine Dining Restaurants

About the Indian Restaurant Industry

Worth Rs.75000 crores, with growth rate of 7% annually More than 1.5 million outlets (restaurants) Organised: 14% Organised sector growth: 16% annually
Segments of the restaurant industry:
Pubs, Bars, Clubs, Lounges

About the Indian Restaurant Industry

Trends (in India)

Willingness to experiment with various cuisines Atmosphere as important as food quality Demand for quality Creativity with preparation and presentation
References: http://businesstoday.intoday.in/story/food-and-dining-trends-2012-restaurateurs-toexperiment/1/20952.html

Takeaways
Companies must entertain the diner, as well as provide good food Food quality and variety must be stressed Chefs, stewards and other staff must be highly trained

Key Trends in the Restaurant Industry & Takeaways

SERVICES OFFERED BY RESTAURANTS

Primary
Dining Bar

Value Adding
Home Delivery Banquets Conferences

Services

SELECTED COMPANY

Case Study

American doughnut company and coffeehouse chain 16 stores in India, only in the Northern region Competition: Starbucks, Krispy Kreme Product types:
Hot beverages Iced Beverages Frozen Beverages Baked Goods Sandwiches

About Dunkin Donuts

SERVICES OFFERED BY DUNKIN DONUTS

Physical (Store)
Food and Beverage (QSR) Parking

Online
Coffee/Home Brewing Tips Nutrition Catalog Healthier Options DDSMART Online Shopping DD Card

Services

Print Ads: Pricing

Print Ads: Nutrition

Print Ads: Popularity

Print Ads: Freshness/Energy

Commercials 1 2 3

Takeaways No inclination to show a premium nature A down-to-earth, All-American brand Focus instead on the normal everyday for its consumers
Work Using the train Spending time with family

TVCs

Promotional Campaigns
Easy Bake Oven

Promotions

Promotional Campaigns
Joe Dunkin

Promotions

Promotional Campaigns
Create Dunkins Next Donut

Promotions

Promotional Campaigns
Movie and Sports Team Sponsorships

Promotions

Promotional Campaigns
Online
Youtube

Blog Facebook

Promotions

 Coffee for the average person, for the suburban audience

Started with donuts; hence more variety in baked goods Gives a no-frills experience, where customer movement is much faster Lesser consistency in quality

Premium positioning, for the metropolitan audience

Started with coffee; hence more variety in coffees and beverages Gives a cosy caf atmosphere, where customers spend more time, with free WiFi

Greater consistency in quality

Competition

Company Facts
Largest coffee and baked goods chain (sells more coffee than Starbucks) Sells 1.7 billion cups of coffee globally, every year On average, sells more than 30 cups of coffee every second 2008 revenue: $5.5 billion

Industry Impact

About Dunkin Donuts in India

Consumer Opinions

Takeaways
Maintain variety of coffee Customise foods and beverages to Indian palate

Recommendations

Consumer Opinions

Takeaways
Improve quality of coffee Consider improving presentation of foods and beverages

Recommendations