b2b group assignment 20
TRANSCRIPT
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 1/15
Hyatt Group of Hotels India Category: Business Class or Five Star Chain of Hotels in India
Submitted By
Akshay Aggarwal 81BApurva Vashisht 86B
Omkar Bhatt 36A
Raisa Chakravarty 44A
Sana Arora 124B
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 2/15
Company Overview
The Hyatt is an established international chain reputed for its high quality of service. The Hyatt ha
around 735 hotels and resorts spread across 44 countries. It has hotels all across the world from Bali , t
Beijing, from Berlin , to Bombay. The company's affiliates own, operate, manage and franchise Hya branded hotels and resorts under the Park Hyatt™, Grand Hyatt™, Hyatt Regency™, Hyatt Resorts™
Hyatt™, Hyatt Place™ and Hyatt Summerfield Suites™ brands. The Hyatt has united all its hotels, an
resorts under one umbrella brand and has used integrated marketing communication tools to convey the
superiority to the customers.
Mission & VisionThe mission of the company is to provide authentic hospitality by making a difference in the
lives of the people they touch every day.
The group relentlessly and consistently pursues the goal of becoming the most preferred brand inthe niche segment of associates, guests, and owners that it caters to.
Business Philosophy
“We do not believe in brand image but believe in brand experiences.” A hotel should design its products and services in such a manner that it matches up to the kind of image
desires to portray to the market. In this case, Grand Hyatt, Mumbai, for instance positions itself as
business class hotel. All the amenities and services provided are suitable for the business class.
The Grand Hyatt understands that it is more cost-effective to regain the trust of an unsatisfied customthan to spend on advertising looking for new ones. The Grand Hyatt has a system in place as regards t
how to handle a disgruntled guest. For the convenience and quick recall for the employees this system ha
been contracted into a term called ―LEARN‖ (service recovery mechanism).
L – LISTENE – EMPATHISEA – APOLOGISER – REACTN – NOTIFY
Business Overview
Nature of Business
Hotels are essentially service providers and there are three systems for distributing the services, e.g. tw
level, one-level and zero-level. The three-tier distribution system is required to be managed properly s
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 3/15
Hotels
Direct
distribution
methods
Customers
Hotels Tour Operators Customers
that the user’s expectations are fulfilled and the promised services reach the ultimate users in the rig
way. It is in this context that the hotel management requires world class professional excellence whic
would simplify the distribution process and maintain cost effectiveness.
Channel I: Direct-To-Customer
In the first channel, the hotel organization and customers communicate directly with no intermediarie
This is called direct marketing. It is also known as Zero-Level distribution system owing to the fact that
does not have any intermediaries.
Channel II: Tour Operator as An Intermediary
Tour operator is a wholesaler in the travel and tourism industry. A tour operator negotiates bu
allocations of seats from charter airlines and bulk accommodation from hotels, and then develops
packaged product, which is marketed to consumers directly. The tour operator does not charge
commission; instead he agrees upon discounted prices with the different hotels involved, and makes prof
by charging the customer an inclusive price for the holiday package. In fact, some of the operators mar
up the price by as high as 33% and only pays 50%-60% of the normal room price to the hotelier who ilodging their clients.
Channel III: Travel Agent as an Intermediary
In distribution, travel agents perform the role of a retailer stocking a range of hotel and travel product
Information about the products and prices is stored in database and manual directories, and is provided v
brochures. Most travel agents’ make use of the GDS technology. Global Distribution Systems (GDS
allow travelers to select hotels and make reservations from remote locations, for any date in the future an
receive instant confirmations at the same time. Some of the third party websites that the Grand Hyatt us
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 4/15
Hotels Tour Agents Customers
are www.expedia.com and www.travelocity.com. Some of the travel agents include: ―Tour Club‖, Flex
Tours Pvt. Ltd., and Indian Holiday.
Management & Organization Structure
*Front office organization chart & Hierarchy
Augmente
Product /
GENERAL MANAGER
FRONT OFFICE
MANAGER *
ront Desk
Supervisor
Rooms
Coordinator
HOUSEKEEPING
MANAGER
Floor
Supervisor
Laundry
Supervisor
Custodial
Supervisor
HEAD SALES AND
MARKETING
Sales
Manager
Marketing
Manager
Reservation
Manager
FOOD &
BEVERAGE
MANAGER
Restaurant
Manager
& BarManager
Executiv
chef
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 5/15
Clients: SEGMENTATION
CUSTOMERS:
There is a broad consensus that segmentation is the starting point for developing effective marketing strategie
because trying to target all customers is not cost effective and hence concentrating a hotels marketing resource
on key markets leads to a more focused and cost effective marketing strategy. The segmentation variables for
building blocks in developing target market profiles of customer expectations and the primary segmentatio
variable used by virtually all hotel and lodging companies is the purpose of travel. Hotel users can be classifie
based on this primary variable as follows:
The Business TravelerThe business traveler is the archetypal corporate executive, and frequent flier who opts to stay in a hotel durin
a business trip.
The Luxury Traveler
The luxury traveler is the traveler who has the time and money on his hands to splurge on a 5 star hotel
Special Travelers
This is a class of people comprising of government officials, politicians on official visits, or celebrities such a
movie stars or sports persons. They require special accommodation arrangements when they are staying in th
hotel.
Apart from the purpose of travel users of the hotel industry can also be classified based on various oth
variables which are as follows:
Geographic Segmentation: The Federation of Hotels and Restaurant Association of India has divide
the country into four geographical regions (north, east, west and south). Within each of these zone
areas are further classified according to their population density, levels of industrialization, clima
and various other geographic factors.
Demographic Segmentation:. These depend on Age, Gender, socio economic class, Ethnic origi
religion and nationality
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 6/15
Psychographic Segmentation: This type of segmentation is based on the customers social clas
lifestyle and personality. A customers lifestyle reflects the expectations he will have of the service
and facilities provided by the hotel.
Behavioral Segmentation The behavioral segmentation of customers depends upon factors such
most wanted benefits, usage rates, loyalty, readiness to buy and attitudes toward the product. In th
way the service marketer must understand which of the benefits offered priorities are for the targe
customer and use that to effectively target the customer segment.
Positioning
In a highly competitive environment, there’s a risk that customers will perceive little real difference betwee
competing alternatives and so make their choices based on price. A hotel should design its products an
services in such a manner that it matches up to the kind of image it desires to portray to the market. In this cas
Grand Hyatt, Mumbai, positions itself as a business class hotel. All the amenities and services provided a
suitable for the business class. The hotel provides office space, wherein the guest can make use of computer
printers, and scanners and can do their work peacefully. They also have the facility for their guests to hi
laptops. This kind of facility is not provided by many hotels.
Unlike, other 5 star hotels like J.W. Marriot which portray a Bollywood image, the Grand Hyatt believes i
serving mainly the corporate class. With their newly launched Chinese restaurant, China House, whic
welcomes many celebrities, it has helped the Grand Hyatt to become a part of the social world. The celebriti
visiting the hotel are treated just like any other guests visiting the hotel. There is not much media attention
people bothering them for their photographs or autographs, etc. are few reasons why they prefer coming t
Grand Hyatt. One might think that it is restrictive only to the business class people but it has helped the hig
profile celebrities visiting the hotel to be left alone and peaceful.
Brand Strategy :
The Hyatt has united all its hotels, and resorts under one umbrella brand and has used integrated marketin
communication tools to convey their superiority to the customers. The Hyatt does undertake bran
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 7/15
management at a necessary and prescribed level through advertising, promotion, and continuous improvemen
and innovations in its operations, and efforts to localize its services to suit the local flavor.
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 8/15
The following list represents the kinds of media employed by the Grand Hyatt:
Business Publications: The Grand Hyatt often places advertisements in Business publications suc
as Outlook, Business World etc. to serve as reminders to the corporate executives.
Tourist Publications: The Grand Hyatt also places ads, to attract tourists, in tourist publication
such as TravTalk, Times Food Guide, Mumbai City Guide, Travel Guide Mumbai etc.
Directories like The Yellow Pages.
Direct mail to tour operators and corporate clients.
Although media like T.V., radio, etc. are rarely used by the Hotel industry, The hotel industry ca
leverage itself through lifestyle, travel and living, and entertainment shows such as programs th
feature on the Discovery Travel and Living channel, NDTV Nightout, After Hours, etc.
OOH (Out of Home) advertising is catching on in a big way in India and hotels have begun t
make use of such a form. This type of media works well in urban areas where the average perso
is more ―out of home‖ rather than indoors.
Another technique of advertising is via the internet. All the hotels have their own websites whic
provide detailed information regarding accommodation, restaurants, lounges, spas and oth
facilities that they provide. The Grand Hyatt too has its own exclusive websites with all the detai
mentioned. Infact the website allows for picture galleries to be exhibited as well as video tours o
the hotel. Also, apart from their own websites, hotels tie- up with online travel websites to plac
advertisements.
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 9/15
Distinguishing Factors
As a distinguishing factor, the service provider prepares an augmented product that exceeds the customer
expectations. Services that fall under this category are generally the additional services, over and above th
basic product, that are offered to the customers. They serve as the main point of differentiation. By and larg
the core and basic products offered by most of the hotels across the industry tend to be the same. Therefore, th
hotels use this product level to make their package more attractive than the competitors’. The Grand Hyatt us
the following additional facilities to leverage itself.
The following is a list of the common augmented products provided by the Grand Hyatt. They are available
all the guests irrespective of the type of room they occupy or the nature of their visit to the hotel i.e. as a gue
or a visitor.
Dedicated swimming pool
Baby-sitting service
Convenient access to the complex's 24-hour Business Centre for private meeting rooms, secretari
services, translation facilities and laptop rentals
Grand Ballroom- 30,000 square feet of conference and meeting space - amongst the largest and mo
sophisticated facilities in the city.
Convenient access to Club Oasis - Fitness Centre and Spa
Gourmet Store within the complex for homemade jams, chutneys and sauces, a variety of cheese, col
cuts, olives and wine as well as freshly baked breads, cakes, tortes and cookies
Catering and home delivery from Grand Hyatt Mumbai's restaurants
Beauty Salon
Tennis Courts
GrandHyattPlaza – A Multilevel shopping plaza featuring over 50 boutiques of Indian and internation
brands.
Over and above the list mentioned above, we have classified the Lounges and Bars as augmentedproducts. This is because the hotel, in order to satisfy the basic needs of accommodation and dining,
already has 547 rooms and suites as well as 5 restaurants. Thus the lounges and Bars serve as
additional and extra facilities that the hotel provides to the guests.
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 10/15
Recreation &
HealthHotel FacilitiesDiningAccommodation
Rooms
Grand King
Grand Queen
Grand Twin
Apartments
Studio Apts
1 BHK
2 BHK
3 BHK
Grand Club
Accommodations
Club King
Club Queen
Club Twin
Suites
Grand Exec. Suites
Veranda Suites
Diplomatic Suites
Grand Suites
Presidential Suites
M
Celini
Soma
Grand Café
China House
M Bar
The Bar
Swimming
Pool
Club Oasis(Fitness Centre
& Spa)
Gourmet
Store
Beauty
Salon
Tennis
Courts
GrandHyattPlaza (Shopping
Centre
24 Hoursroom
Service
24 Hour
Concierge
700+ Car
Park
Technology
Concierge
High SpeedInternet
Service
Baby Sitting
Service
24 HourBusiness
Centre
Grand
Ballroom
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 11/15
Brand Value – Distinguishing Factor
Having a chain of hotels is considered to be an advantage due to the loyalty that could be developed amon
customers who travel a lot. The guest is already assured of good service because of the image of Hyat
Therefore, Grand Hyatt, Mumbai, did not feel the need to work on building its brand image. The existing imag
of the Hyatt helped this hotel to carve a place in the market. This does not imply that the Grand Hyatt sat on i
laurels and did nothing to localize its brand. The Hyatt does undertake brand management at a necessary an
prescribed level through advertising, promotion, and continuous improvements and innovations in i
operations, and efforts to localize its services to suit the local flavor. Thus projecting a single brand makes sen
in the global market.
Existing Competition
TAJ Hotels:Taj Hotels Resorts and Palaces are recognised as one of Asia's largest and finest hotel company.Taj Hotels Resorts and Palaces comprises 59 hotels at 40 locations across India with an
additional 17 international hotels in the Maldives, Mauritius, Malaysia, United Kingdom, United
States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. Incorporated bythe founder of the Tata Group, Jamsetji N Tata, the company opened its first property, The Taj
Mahal Palace Hotel, Bombay, in 1903.
The company has had a long-standing commitment to the continued development of the Indiantourism and hospitality industry. From the 1970s through the 1990s, the Taj played an importantrole in launching several of India's key tourist destinations. Working in tandem with the Indian
government, the Taj developed resorts and retreats while the government developed roads andrailways to India's hidden treasures.
ITC/ Sheraton Corporation
. ITC -Welcomgroup Hotels, Palaces and Resorts, is today one of India's finest hotel chains,with its distinctive logo of hands folded in the traditional Namaste is widely recognised as the
ultimate in Indian hospitality. Each of the chain's hotel pays architectural tribute to ancientdynasties, which ruled India from time to time. The design concept and themes of these
dynasties play an important part in their respective style and decor.
With more and more hotels being added at strategic destinations, the group has joined handswith the Sheraton Corporation to strengthen its international marketing base. A successfulmarketing franchise for almost 25 years now, there are currently 10 ITC - WelcomgroupSheraton hotels, and more in the pipeline.
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 12/15
The Leela Group
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 13/15
The Leela Group is engaged in the business of ready-made garments and luxury hotels and
resorts. The Leela Kempinski, Mumbai and The Leela, Goa and the newly opened LeelaPalace Kempinski New Delhi are some of the best hotels in India, and have also won
considerable international acclaim.
The EIH Ltd (The Oberoi Group)
Asian elegance is the key to running hotels, if you ask EIH (better known as The OberoiGroup). The company owns and operates about 20 luxury hotels, about 10 mid-range hotels,
and two inland cruises; The Oberoi Group operates primarily in India, but also in Australia,Egypt, Indonesia, Mauritius, and Saudi Arabia. Most of the company's luxury properties bear
the Oberoi banner.
India Tourism Development Corporation (ITDC) / The Ashok Group
India Tourism Development Corporation (ITDC) was established in 1966 as anautonomous public sector corporation, entrusted with the task of helping develop tourism
infrastructure and promoting India as a tourist destination.
The ITDC Ashok Group of hotel chains manages some of the best five star and luxury tourhotels in the Indian hospitality industry. The hotels run by the ITDC Ashok Group of hotel
chains may be divided into different categories, these are elite hotels, comfort hotels and
classic hotels. The ITDC Ashok Group of hotel chains manages 33 hotels in
26 different tourist destinations all over India. The management of Ashoka Group believesin offering the best in the hospitality industry and the staff at each of the hotels run by the
group is especially trained to be courteous and efficient.
Marriott Group
Marriott India was established in 1988 and opened its first Mariott hotel in Goa in 1999. Marriott
hotels are managed under five brands — Ritz-Carlton, JW Marriott Hotels, Marriott Hotels &
Resorts, Renaissance Hotels and Courtyard by Marriott. By 2012, the group is expected toexpand its Indian operations to encompass 30 properties in the luxury to the upper-moderate
tiers, with a total of 5,524 rooms.
Intercontinental Hotel Group/ the Lalit Hotel
Intercontinental Hotel group is the largest Hotel chain in the world from a very long time now.
InterContinental Hotels Group (IHG), that runs brands like the Intercontinental and Holiday Inn,
will be re-positioning its Intercontinental brand next year in the country. The company currently
has four Intercontinental brand hotels and will be left with just one at Marine Drive in Mumbai
by next year. This follows the closure of the franchisee agreement it had with The Lalit Group of
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 14/15
hotels run by Bharat Hotels for the Intercontinental brand. The latter had decided to run its own
brand hotels and hence end the franchisee with the IHG.
Moreover, IHG has entered into a joint venture with Duet India Hotels Group (DIHL), the hotel
investment arm of global asset manager Duet Group, to develop 19 new Holiday Inn Express
brand hotels in India.
Future Plans for Growth
Growth Plan for Hyatt is directly linked to the developing Indian Tourism Industry. With governme
initiatives and developing secondary markets, Hyatt should look at increasing presence in India.
Hyatt is looking for a strong luxury positioning.
Secondary markets
With Tier 1 and Tier 2 cities showing tremendous growth in business clients, Hyatt looks at extendin
the Brands Hyatt Regency and Grand Hyatt to this centres. Most Indian cities having a sense of heritag
attached to them, give an opportunity for development in both Leisure and Business Hospitality spac
Thus the balance will be very important in development of the properties in future.
Health tourism
India is gradually gathering popularity as a destination for health tourism. The country needs to explo
the inherent cost advantage it can offer to a health tourist, the study said. The biggest driver fo
healthcare tourism is the disparity in costs.
. • A heart surgery in the US costs USD 30,000 as compared to USD 6,000 in India.
. • A bone marrow transplant in the US costs USD 250,000 and USD 26,000 in India.
With yoga, meditation, ayurveda, allopathy, and other systems of medicine, India offers a unique bask
of services to an individual that is difficult to match by other countries. Clinical outcomes in India are par with the world's best centres since India has internationally qualified and experienced specialists.
Development of Spas and Health Resorts: India tops the list along with China and Montenegro wi
demand growing each year at a rate of 7.9 per cent as far as India is concerned. For the time being th
spa industry in India is still small but it has a bright future ahead. Small spa resorts are key players fo
now, if an international giant like Hyatt enters now it can dominate the space.
8/3/2019 B2B Group Assignment 20
http://slidepdf.com/reader/full/b2b-group-assignment-20 15/15
Boutique Hotels and Exclusivity
With growing economy and higher purchasing power Indians are looking for better and differentiate
experiences. Also there is still a scope for creating exclusive places like a Genting Highlands (Kanat
being an example of this). Boutique hotels and exclusive spaces will be essential to create a stronge
luxury brand imagery.