Taj Hotel Case Study

1.0 SOURCE PROBLEMS

Holding the title as “India’s Largest Conglomerate”, the Tata Group holds its place as one of the greatest success story in the business world. With businesses spanning over seven industries and operating over 100 companies, this massive giant combined revenue exceeded the amount of USD100 billion for the year 2014.

Managing such a large conglomerate comes with its own set of challenges and issues. This paper attempts to highlight the current issues faced by the Tata Group, more specifically in relation to their hotel chain known as the Taj Hotels. It analyses and discusses the causes and reasons for these problems and concludes with suggested recommendation to address these issues.

Lack of relevant direction strategy

Although IHCL failed to hit the sales target for FY 2012-2013, sales for FY 2013-2014 has seen a healthy growth. Going forward, it must be considered that year 2014 has not been one the best years for the travel industry which has been hit by a series of air disasters, virus scare, and political unrest in many countries. Strong International brands have also increased their presence in India, capturing their share of the domestic market. Faced with strong competition and uncertain environmental factors, IHCL must take a cautious approach in forecasting for the next few years. This report aims to forecast a steady growth of Sales at a modest rate of 10% for the next three years. This is achievable by capitalizing on the strong Taj brand and IHCL expansion plans to open 21 new hotels over the next two years (Ved

ALTERNATIVES

FOR PROBLEM 2.1 (THE BRAND IMAGE OF GINGER HOTELS)

5.1 CHANGE OF BRAND PERCEPTION

Since the domestic Indian market is predominantly face-conscious, the Taj Group can implement a change of marketing strategy with less emphasis on the low cost of Ginger Hotels. Instead, the focus of Ginger’s marketing campaigns can focus on its value and functional convenience. Attributes such as the speed of service and hassle free experience for businessmen on tight schedule would shift the focus away from the brand’s current image as cheap and low class.

5.2 ADDED VALUE AND SERVICES

Although Ginger must continue to maintain its position as a budget hotel, it can consider adding basic services such as meeting rooms to meet to the needs of business travelers which was its first intended target market. Other add-on services which would attract this target market include printing facilities and internet work stations.

FOR PROBLEM 2.2 (TOP DOWN