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MARKETING
APPLICATION AND
  PRACTICES
SERVICE MARKETING
           HOTEL INDUSTRY
PRESENTED BY----------
VIBHA ARORA                 07
SANDEEP KAUR BATH           11
MEGHA BAVISHI               12
MUGDHA BHATT                15
NAINA HINGHER               32
DISHA KACKER                40
VIDHI MALHOTRA              53
SERVICE MARKETING
SERVICE MARKETING

INTRODUCTION TO SERVICE
  MARKETING
 Services   marketing is marketing based
  on relationship and value. It may be used
  to market a service or a product.
 7 P’s
 Use is inseparable.
 Services do not possess material form.
INTRODUCTION TO HOTEL
INDUSTRY
HOTEL INDUSTRY

 Definition

A hotel is an establishment that provides
paid lodging on a short term basis
A hotel is defined by British law as the place where a bona
  fide traveler can receive food and shelter, provided he is
  in a position to pay for it and he is in a fit condition to be
  received. Hence, a hotel must provide food and shelter
  and has, in turn, the right to refuse if the traveler is
  drunk, disorderly, unkempt, or if he is not in a position to
  pay for the services.
Introduction

 Linked to the tourism industry
 Helps to boost travel & tourism
 Business Travel is included
• Demand –supply gap in star category
  hotels
• Opportunity for investment for Indian and
  over seas players
CLASSIFICATION
MOTEL
 Definition

A motel (Motor Hotel) is a hotel which is for
  a short stay, usually for a night, for
  motorists on long journeys. It is built
  conveniently close to major roads and
  intersections.
DIFFERENCE BETWEEN HOTEL
         AND MOTEL
 Definition
 Location
 Restraunts   and eating
 Pricing
 Facilities
 Appearance
 Duration
CLASSIFICATION OF HOTEL

         MARKET SEGMENT
•   Economy / limited services hotels
•   Mid Market Hotels
•   All suite Hotels
•   Time share Hotels
•   Executive Hotels
•   Luxury / Deluxe Hotels
CLASSIFICATION

            According to Size
 Small Hotels (150 rooms)
 Medium Hotels (up to 299 rooms)
 Large Hotels (up to 600 rooms)
 Extra Large Hotels (above 600 rooms)
CLASSIFICATION

            Level of Services
 World Class Services
 Mid Range Services
 Economy / Limited Services Hotels
CLASSIFICATION

        Ownership and Affiliation
 Independent Hotel
 Chain Hotels
 Franchisee Hotels
CLASSIFICATION
            According to Star
 One  Star (*)
 Two Star (**)
 Three Star (***)
 Four Star (****)
 Five Star (*****)
 Five Star Deluxe (*****deluxe)
5 star hotel facilities – ITC
 24 hour Services :
 Business Centre
 Concierge Services
 Doctor on call
 Duty Manager
5 star hotel facilities – ITC
 In-Room   Dining
 Laundry and Pressing
 4 Restaurants, a Lounge and a Bar
  Art Gallery
  Baby Sitting Service
  Beauty Salon
  Boardrooms and Meeting rooms
  Broadband and Wi-Fi internet access
  (chargeable)
5 star hotel facilities – ITC

 Car and Limousine Hire Service
 Concierge
 Courier Service
 Daily Shuttle to South Mumbai
 Express Laundry Service
 Florist
 Foreign Currency Exchange
 Gymnasium
5 STAR HOTEL FACILITIES-
           ITC
 In-Room   electronic laptop compatible
 safes
 International Satellite television channels
 Night Club
 Outdoor Parking available
 Outdoor Swimming pool
 Power adapters upon request
 Private Bar ( Mini bar)
 Shopping Arcade
 The Spa
 Tour Guides
Future Potential & Growth

   World Tourism Organisation (WTO) - International tourist
    inflow in India by 2020 would be 10 m
   Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs
   Expected share of world tourism: 1.5% by 2010
   Untapped domestic tourist potential
   Commonwealth Games in New Delhi in 2010
   Medical Tourism
   Rural Tourism
   Wildlife Tourism
Demand Supply Gap

   Demand Supply Gap for 2012– 1,50,000 rooms
       Supply – 1,10,000 rooms
       Demand – 2,60,000 rooms

   Demand Supply Gap – 60,000
       Supply - 90,000 rooms
       Demand – 1,50,ooo rooms


Ample scope for Indian and global players to set up new projects
Perceptual brand mapping of Indian hotels
SWOT

                   Strengths
 Diversity

 Demand-Supply     gap
 Government   Support
 Market   Share
SWOT

             Opportunities
 Open  Sky
 Rising Income
SWOT

                  Weakness
 Poor   Infrastructure
 Slow   Implementation
 Susceptible   to political Events
SWOT

                   Threats
 Fluctuation
 Increasing   Competition
INTRODUCTION TO ITC HOTEL
Introduction to ITC hotels

   ITC Limited entered the hotels business in 1975
   ITC hotels currently owns and operates 100 hotels in 75
    destinations
   India's second largest hotel chain
   They show our heritage
   The group today operates under different brands:
       ITC Luxury Collection Hotels
       WelcomHotel Sheraton Hotels
       Fortune Hotels
       WelcomHeritage Hotels
       WelcomeEnviron
ITC Hotel Properties
   ITC Hotel Maurya Sheraton & Towers, New Delhi
   ITC Hotel Grand Maratha Sheraton & Towers , Mumbai
   ITC Hotel Sonar Bangla Sheraton, Kolkata
   ITC Hotel Grand Central, Mumbai
   ITC Hotel Windsor Sheraton & Towers, Bangalore
   ITC Hotel Kakatiya Sheraton & Towers, Hyderabad
   ITC Hotel Park Sheraton & Towers , Chennai
   WelcomHotel Rajputana Palace Sheraton , Jaipur
   WelcomHotel Chola Sheraton, Chennai
   WelcomHotel Mughal Sheraton, Agra
   WelcomHotel, New Delhi
   WelcomHotel Rama International , Aurangabad
   WelcomHotel , Vadodara (through associate company)
   WelcomHotel , New Delhi
   WelcomHotel Grand Bay, Visakhapatnam
MARKETING MIX
Marketing mix –
       Product(services offered)
   Room bookings – Eva, business, executives,
    disabled
   Butler service
   Wi-Fi internet
   SPA & Swimming pool
   Meeting rooms/ Conference rooms/ Board rooms
   Restaurants & Bars
   Meetings and Events/ Luxury events
Marketing mix - Promotion

 Promotion through FMCG goods
 Internet
 Media reports and media releases
 Concept promotion
 Customers
 Social service projects
 Travel assistants
 Hotel directories
Marketing mix - People

   Receptionists
   Bell boys
   Laundry servicemen
   Butlers
   Room service
   Chauffers
   Managers
   Cleaners
   Assistants for guests
   Chefs
   Waiters etc
Marketing mix - Place

 Strategic Locations
 Metropolitan cities
 Business hubs
 Tourist places
 Heritage areas
 Upcoming areas
CAPACITY AND DEMAND
Capacity and demand

Capacity(ITC Grand central, Parel, Mumbai)
 242 guest rooms and suites
 Arranging tours for guests(Around 400 people in a day)
 24-hour Butler service for all 242 rooms(optimum capacity –
  30 rooms at a time)
 Grand ballroom – 400 to 750 guests at a time
 5 conference halls
 6 restaurants which can cater roughly 430-500 people at a
  time viz Kebabs and Kurries, Hornby’s Pavilion, Shanghai
  Club, Dublin, Frederick’s Lounge and The Point of View.
Capacity and demand

 The   flow of customers is stable but it dips a
  bit in the rainy season
 Generally if the customers exceed the
  capacity then they are given suggestions to
  go to other ITC properties
 If the customers want the same area then
  other hotels nearby are indirectly
  suggested(eg. Oberoi trident, Taj, Grand
  hyatt eyc)
SERVICE QUALITY
Service quality

 Hospitality
 Materialattributes – food, toiletries,
  complimentary goods etc
 Time management – efficiency in service
 Communication
 Presentation
CONSUMER BEHAVIOUR AND
     PERCEPTION
CONSUMER BEHAVIOUR AND
     PERCEPTION
Behaviour(Why customers go?)
 Disposable money
 Class/ Status
 Image of ITC as an excellent brand
 Luxury expectations
 References received
 Personal liking
CONSUMER BEHAVIOUR AND
     PERCEPTION
Types(Who goes?)
 Business class
 Executives
 Tourists
 Local people
 Party goers
 Study groups
 Work groups
CONSUMER BEHAVIOUR AND
     PERCEPTION
Perception(What do consumers expect/feel?)
 Excellent conditions
 High class treatment
 Effective time management
 Value for money
 Rise in social status
 Safety & Security
 Hygiene
Thank You

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  • 2. SERVICE MARKETING HOTEL INDUSTRY PRESENTED BY---------- VIBHA ARORA 07 SANDEEP KAUR BATH 11 MEGHA BAVISHI 12 MUGDHA BHATT 15 NAINA HINGHER 32 DISHA KACKER 40 VIDHI MALHOTRA 53
  • 4. SERVICE MARKETING INTRODUCTION TO SERVICE MARKETING  Services marketing is marketing based on relationship and value. It may be used to market a service or a product.  7 P’s  Use is inseparable.  Services do not possess material form.
  • 6. HOTEL INDUSTRY  Definition A hotel is an establishment that provides paid lodging on a short term basis A hotel is defined by British law as the place where a bona fide traveler can receive food and shelter, provided he is in a position to pay for it and he is in a fit condition to be received. Hence, a hotel must provide food and shelter and has, in turn, the right to refuse if the traveler is drunk, disorderly, unkempt, or if he is not in a position to pay for the services.
  • 7. Introduction  Linked to the tourism industry  Helps to boost travel & tourism  Business Travel is included • Demand –supply gap in star category hotels • Opportunity for investment for Indian and over seas players
  • 9. MOTEL  Definition A motel (Motor Hotel) is a hotel which is for a short stay, usually for a night, for motorists on long journeys. It is built conveniently close to major roads and intersections.
  • 10. DIFFERENCE BETWEEN HOTEL AND MOTEL  Definition  Location  Restraunts and eating  Pricing  Facilities  Appearance  Duration
  • 11. CLASSIFICATION OF HOTEL MARKET SEGMENT • Economy / limited services hotels • Mid Market Hotels • All suite Hotels • Time share Hotels • Executive Hotels • Luxury / Deluxe Hotels
  • 12. CLASSIFICATION According to Size  Small Hotels (150 rooms)  Medium Hotels (up to 299 rooms)  Large Hotels (up to 600 rooms)  Extra Large Hotels (above 600 rooms)
  • 13. CLASSIFICATION Level of Services  World Class Services  Mid Range Services  Economy / Limited Services Hotels
  • 14. CLASSIFICATION Ownership and Affiliation  Independent Hotel  Chain Hotels  Franchisee Hotels
  • 15. CLASSIFICATION According to Star  One Star (*)  Two Star (**)  Three Star (***)  Four Star (****)  Five Star (*****)  Five Star Deluxe (*****deluxe)
  • 16. 5 star hotel facilities – ITC  24 hour Services :  Business Centre  Concierge Services  Doctor on call  Duty Manager
  • 17. 5 star hotel facilities – ITC  In-Room Dining  Laundry and Pressing  4 Restaurants, a Lounge and a Bar Art Gallery Baby Sitting Service Beauty Salon Boardrooms and Meeting rooms Broadband and Wi-Fi internet access (chargeable)
  • 18. 5 star hotel facilities – ITC  Car and Limousine Hire Service Concierge Courier Service Daily Shuttle to South Mumbai Express Laundry Service Florist Foreign Currency Exchange Gymnasium
  • 19. 5 STAR HOTEL FACILITIES- ITC  In-Room electronic laptop compatible safes International Satellite television channels Night Club Outdoor Parking available Outdoor Swimming pool Power adapters upon request Private Bar ( Mini bar) Shopping Arcade The Spa Tour Guides
  • 20. Future Potential & Growth  World Tourism Organisation (WTO) - International tourist inflow in India by 2020 would be 10 m  Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs  Expected share of world tourism: 1.5% by 2010  Untapped domestic tourist potential  Commonwealth Games in New Delhi in 2010  Medical Tourism  Rural Tourism  Wildlife Tourism
  • 21. Demand Supply Gap  Demand Supply Gap for 2012– 1,50,000 rooms  Supply – 1,10,000 rooms  Demand – 2,60,000 rooms  Demand Supply Gap – 60,000  Supply - 90,000 rooms  Demand – 1,50,ooo rooms Ample scope for Indian and global players to set up new projects
  • 22. Perceptual brand mapping of Indian hotels
  • 23. SWOT Strengths  Diversity  Demand-Supply gap  Government Support  Market Share
  • 24. SWOT Opportunities  Open Sky  Rising Income
  • 25. SWOT Weakness  Poor Infrastructure  Slow Implementation  Susceptible to political Events
  • 26. SWOT Threats  Fluctuation  Increasing Competition
  • 28. Introduction to ITC hotels  ITC Limited entered the hotels business in 1975  ITC hotels currently owns and operates 100 hotels in 75 destinations  India's second largest hotel chain  They show our heritage  The group today operates under different brands:  ITC Luxury Collection Hotels  WelcomHotel Sheraton Hotels  Fortune Hotels  WelcomHeritage Hotels  WelcomeEnviron
  • 29. ITC Hotel Properties  ITC Hotel Maurya Sheraton & Towers, New Delhi  ITC Hotel Grand Maratha Sheraton & Towers , Mumbai  ITC Hotel Sonar Bangla Sheraton, Kolkata  ITC Hotel Grand Central, Mumbai  ITC Hotel Windsor Sheraton & Towers, Bangalore  ITC Hotel Kakatiya Sheraton & Towers, Hyderabad  ITC Hotel Park Sheraton & Towers , Chennai  WelcomHotel Rajputana Palace Sheraton , Jaipur  WelcomHotel Chola Sheraton, Chennai  WelcomHotel Mughal Sheraton, Agra  WelcomHotel, New Delhi  WelcomHotel Rama International , Aurangabad  WelcomHotel , Vadodara (through associate company)  WelcomHotel , New Delhi  WelcomHotel Grand Bay, Visakhapatnam
  • 31. Marketing mix – Product(services offered)  Room bookings – Eva, business, executives, disabled  Butler service  Wi-Fi internet  SPA & Swimming pool  Meeting rooms/ Conference rooms/ Board rooms  Restaurants & Bars  Meetings and Events/ Luxury events
  • 32. Marketing mix - Promotion  Promotion through FMCG goods  Internet  Media reports and media releases  Concept promotion  Customers  Social service projects  Travel assistants  Hotel directories
  • 33. Marketing mix - People  Receptionists  Bell boys  Laundry servicemen  Butlers  Room service  Chauffers  Managers  Cleaners  Assistants for guests  Chefs  Waiters etc
  • 34. Marketing mix - Place  Strategic Locations  Metropolitan cities  Business hubs  Tourist places  Heritage areas  Upcoming areas
  • 36. Capacity and demand Capacity(ITC Grand central, Parel, Mumbai)  242 guest rooms and suites  Arranging tours for guests(Around 400 people in a day)  24-hour Butler service for all 242 rooms(optimum capacity – 30 rooms at a time)  Grand ballroom – 400 to 750 guests at a time  5 conference halls  6 restaurants which can cater roughly 430-500 people at a time viz Kebabs and Kurries, Hornby’s Pavilion, Shanghai Club, Dublin, Frederick’s Lounge and The Point of View.
  • 37. Capacity and demand  The flow of customers is stable but it dips a bit in the rainy season  Generally if the customers exceed the capacity then they are given suggestions to go to other ITC properties  If the customers want the same area then other hotels nearby are indirectly suggested(eg. Oberoi trident, Taj, Grand hyatt eyc)
  • 39. Service quality  Hospitality  Materialattributes – food, toiletries, complimentary goods etc  Time management – efficiency in service  Communication  Presentation
  • 41. CONSUMER BEHAVIOUR AND PERCEPTION Behaviour(Why customers go?)  Disposable money  Class/ Status  Image of ITC as an excellent brand  Luxury expectations  References received  Personal liking
  • 42. CONSUMER BEHAVIOUR AND PERCEPTION Types(Who goes?)  Business class  Executives  Tourists  Local people  Party goers  Study groups  Work groups
  • 43. CONSUMER BEHAVIOUR AND PERCEPTION Perception(What do consumers expect/feel?)  Excellent conditions  High class treatment  Effective time management  Value for money  Rise in social status  Safety & Security  Hygiene