b2b group assignment 20

8/3/2019 B2B Group Assignment 20

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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



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



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



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



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



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



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.



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.



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.



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



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.



The Leela Group



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



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.



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.

b2b group assignment 20

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