Competitive pressure of the Taj hotel group

The mean of the analysis is to explore and understand the current competitive pressure of the Taj Hotel group facing in the international market. It also explains the analysis with the theory and the marketing strategies that they follow to carry the market talk about in the overseas market.

1. 2. About Taj

Taj Hotels is an integral part of Tata Group, one of the India's largest business companies. Jamshetji Nusserwanji Tata is a creator of Tata group who opened up the Taj Mahal Hotels on 16 Dec 1903. The Taj hotels were built-in the time were Indian are not allowed in the luxurious hotels in the time of British isles India. Legendry Jamshetji Nusserwanji Tata, the first Indian industrialist who built the India's first luxury hotel in the entire year 1903 for Ј500, 000.

Due to the attractive location and the original architecture it gain more stunning in charge from the overseas audience. Due to these key elements it benefits an iconic position of the very most iconic hotel in India. Taj is really the only hotel which includes its aerated water plant, laundry, electroplating and cleaning machine for its silver ware.

1. 3. Marketing

Brown & Ragsdale (2002) suggests that the hotel industry should make investments more in marketing activities to draw in and retain friends to stay in the industry. The marketing process which involves investment influences client satisfaction and service quality said by Roth & Jackson (1995). If it works badly then it'll have an impact on the efficiency in competition of the firms.

2. 1. Marketing Strategies

2. 1. 1. The Hotel's market placement and competitive Market Efficiency

Marketing position identifies the location of an brand which is in accordance with its rivals in the customer's head. A hotel's placement is dependant on the special features or characteristics like food and beverage service and particular comforts like airport convenience. They may have located themselves as a higher end luxury segment. They have made its consumers to feel the flavour of the royalty in today's world. This made the group different from their worldwide competition Hilton, Oberoi and Marriott groups. They have dispersed worldwide in the countries like Australia, Bhutan, Malaysia, Maldives, South Africa, Britain, Sri Lanka and US.

2. 1. 2. Strategy

A hotel's business strategy has two basic differentiation, they may be market emphasis or an expense emphasis. In this situation hotel uses the hybrid strategy which blends the strategy of market emphasis and cost emphasis. A critical issue facing the marketplace emphasis is to distinguish themselves from the competitor. The business class segment is relatively generate revenue high than the other portion in the hotel business. This specific is highly price delicate in comparison with the blissful luxury and leisure segment. By using the strategy of exploring the business class they have positioned their Taj Presidency hotels in both metro cities and also in small cities.

The Taj designated out the three independent entities like Taj group, business, leisure and luxury. The idea of these sub brands have come into presence in early on 1990's where the management operation was very different. The territory is dispersed geographically according to the three divisions.

2. 1. 3. Segmentation

Taj group has classified their service into three different categories and they are Business, Leisure and luxury. They have categorised their business and created their sub-brands in the first and in themed of nineties, the period was 1990 - 2000. Taj group have showcased them as an extravagance hotel among their competitors. They will be the pioneer of this business and continually achieving the typical and increased their standard. They are concentrating on their own audience who may have been their customer for a long period.

3. 1. Marketing Mix

Marketing mix is probably a common tern in both home and international marketing. Typically seven P' will be the elements for marketing combination and they're price, place, product and creation.

3. 1. 1. Price

The costs is of the Taj is highly affordable for the elite customers. Due to the high standard and the superior quality of the merchandise they provide to the clients. The mark audience of the Taj Mahal hotels will be the person who comes to Taj to the world class standard and the atmosphere of Taj. Through that Taj can sustain its elitism.

3. 1. 2. Place

Place is one of the important factor which Taj have chosen to establish their presence with their exclusive audience. Besides Taj Mahal Palaces and Towers provides more historical happenings and stands in the shoreline with the Arabian Sea. Their each and every hotels stand in the impressive places around the world. These includes,

The Pierre, New York

Taj Boston, Boston

Campton Place, San Francisco

Buckingham Gate, London

Blue Sydney, Sydney

3. 1. 3. Product

Taj groupings own 58 hotels in India and 17 hotels across the world. They have different plans as products in three different sections such as Business, Luxury and Leisure. THE MERCHANDISE are,

Tower Wing Room

Heritage Wing Room

Taj Club

Even they have internet connections, gym, spa, restaurants, forex, health golf clubs, business centres, pubs and banquets.

3. 1. 4. Promotion

Taj organizations regularly comes up with the top more packages every month in the method of Taj Holiday Summertime Packages to improve their job in hotels. They have got conducted their promotions through calends, characters and paper advertising for their approaching events. Even they also participate in the international exhibitions to market the heritage of the Taj organizations.

3. 1. 5. Physical Evidence

Taj hotels is totally satisfying their customer with the standard, luxury, royalties in every the factors which their customer is anticipating them to serve. This makes them to keep transporting the five star product labels more than century.

3. 1. 6. Process

In every hotels such as bed and breakfast time, three stars, five celebrities or seven celebrities they are carrying out a same process since originated.


Assistant carries the suitcases to the allotted room


If need they'll request a wakeup call

Check out

These will be the process which every hotels follows but according to their standard and formulation. In case of Taj Hotels it is different from product to product however the center of the brand is to make the customer happy.

3. 1. 7. People

Taj hotels have various set in place of people to handle the customer based on the service

Practised people

Skilful people

Personal agent

Technical people

Tour agent

4. 1. International Marketing

4. 1. 1. Environmental factors of Marketing

This paper will discuss the five environmental factors which effect global and local marketing. The five factors are technology, demographics, government, culture and economics. I will be taking Taj hotel into consideration to illustrate the factors which have an effect on the hotel industry's marketing decisions. Taj hotel is a hospitality business which is positioned in Mumbai, India. They offer services such as lodging, restaurant, club, catering and meeting space rentals. The major customer base is government, traveler, non income organisations, local business and some corporate clients. Let's find out how these environmental factors have an effect on the marketing hotel.

4. 1. 2. Technology

Technology gets the huge impact where all the organisations market their products and services. While using development of the internet, companies are financially marketing themselves on the global level. The hotel industry relies heavily on tourism as a significant part of client base. Many vacationers who visit the location are foreign nationality for marketing the company. They not only focus on visitors but also international business travellers who come to metropolis on business excursions. The business website offers complete information about hotel's accommodation and services, where it can be accessed by the actual customers all around the globe. Before the existence of the internet, global market was not easily accessible but now everything can certainly be reachable with the creativity in the technology aspects.

4. 1. 3. Demographics

Demographics are another environmental factor that plays an important role in marketing the Taj hotels. This company is a service based mostly and customer must come to the hotel to get service. In such a scenario it's only about location , where Taj hotels are situated in heart of metropolis not only in India but also far away.

4. 1. 4. Government

The hotel must follow regulations and rules which is set forth by the national, central and local government. Conducting a hotel business in India as well as in overseas as it must go away different levels. The hotel's marketing environment focuses on capturing and wedding caterers to federal business. It concentrates both on domestic and international market segments.

4. 1. 5. Culture

The hotel does significant amounts of business with overseas customers who are going to India for business or pleasure. They need their customers to be comfortable through the stay static in hotel. They may have employees with 20 different countries who can assist with the communication and behavior styles. In addition, the hotel has marketing and sales supervisor who are able to help their customers to attain the global status that they are aware of. The hotel will pay for these managers to go to certain countries to fully capture business with international clients.

4. 1. 6. Economics

If the current economic climate is in recession then people are less inclined to travel and they cannot utilize the hotel services. Competition is very strong in India as well as in international market segments. Taj hotels change their marketing strategy as per the economies of size to capture the market share.

There are several environmental factors which have an impact on the marketing decisions of the business.

4. 1. 7. Global Brand Expansion

A hotel company to enter into foreign market faces many issues for appropriate entry strategy. The organization must determine the best ownership structure to manage the property with the neighborhood resources. Indeed they have to separate possession decisions from control decisions. However the current industry uses two steps with regards to the ownership and management. First, entrants must make a decision whether to own the facilities that they operate. The next step is make a decision about managing the company, so possession and control decisions are strongly interlinked in going into the foreign market segments.

4. 1. 8. Entry strategies

There are varieties of ways to enter foreign markets. The three main ways are by direct or indirect export or creation in the international country. Taj hotel made a decision to enter through the simplest way into luxury hotels in the international market segments through the jv and merger- acquisition method, in that we can communicate many good examples such as Pierre in NY and Taj Cape Town in South Africa.

4. 1. 9. Joint Venture

Joint venture requires the partial collateral investment and entails the establishment of joint business projects with regional lovers. They could be jeopardized with the money where firm can own subsidiaries with full possession and control

4. 1. 10. Transferability of Knowledge

The organization will choose the marketing strategy that allows it to transfer the competitive benefits to the marketplace. A hotel's organization include the specs like standard service offerings, training programs, operating steps and physical facilities. There are three types of hotel knowledge which can be classified as follows.

The ability to generate customer service

Superior company management

Physical facilities

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