Embed Size (px)
Citation preview
1
Digvijay Singh Rathore
December 7, 2015
MKTG 406.10.FA.15 MKTG STRAT: THEORY & PRACTICE
2015 Fall Semester
Walter E. Heller College of Business Administration
Professor: Gordon Patzer, Ph.D.
JAIPUR HUTSBudget-friendly Tourist Hostel for Enthusiastic Travelers
The Majestic Fort in Rajasthan is hard to ignore, and Hollywood is no exception. You can see the glimpse of Mehrangarh fort in classic Batman (Dark Knight Rises) and James Bond (Octopussy).
ZEE Jaipur Literature Festival is the largest free literary festival on Earth, Which brings greatest thinker and writer from across South Asia and the World.
Jaipur is unique in its Blue Pottery, famous worldwide. We offer Blue pottery Souvenir to our loyal guests. Still thinking?
“We aim to provide authentic Royal Experience.”
3
Executive Summary
A pocket-friendly home away from home created by the people, who grew up in the royal
ambiance of Rajputana culture, for the people who want soak in the essence of the city of Jaipur and
return home with a bundle of memories.
With the hotel industry thriving manifolds in Rajasthan, it becomes very subjective to
understand where the interest of tourists lie. But it is possible to give them the best of what the city
holds in itself - a rich historical ride with the new wave of traditions to adorn their vacation.
Usually, tourists have to check in a high-priced heritage hotel for these kinds of facilities. But the
idea of this hostel is too give a royal touch and not burn holes in the pockets of the tourists.
It has been observed that tourist choose a place for something that place is known for. Jaipur is
known for its colorful culture and rich history with various platters of shopping for different kinds
of taste. It has wildlife, forts, weapons, museums, climate and food. So why not give the guests
all of this and be pocket-friendly.
Built on a historical property, this hostel will give a look of the old forts. Adding the modern touch,
tourism assistance facilities will be designed so that no one in the hostel straggles about an itinerary
management. Just a practical direction and the guests can land up at the right place for the right thing. The
idea is to look beyond just providing a stay and get involved in making their vacation the best ever with
updated information of events, travel and book under the same roof. Apart from the hostel's rich-in-culture
ambiance, the activities organized will be something which would appeal to young travelers. From short
visits to nearby villages to a professional and authentic tourism guidance, it will aim at providing the best
practical approach to the desired itinerary of each individual guest. To comprehend the needs of the targeted
travelers, young and energetic team would be preferred which can show their dedication beyond their job
titles. For instance, a receptionist will be expected to have knowledge of tourism in Jaipur.
Now that we are ready to look beyond the conventional ideas of a stay and extend our dedication to
the priorities of the guests, the hostel will be designed as a place where communication is encouraged and
sharing new ideas are welcomed. Considering sharing travel ideas will only add to the experience of our
guests, regular workshops will held where guests can clear out any doubts before they go out for visiting
places for the day. This will be optional. A common coffee place will also add as an effort to this idea.
With these facilities, the hostel will be a place which is always open to new ideas with a strong base
being able to handle changes of the dynamic market of hospitality industry,
5
Contents Introduction.....................................................................................................................................6
Objective.........................................................................................................................................6
Layout..........................................................................................................................................7
Facilities beyond the list..............................................................................................................7
Safety and communication...........................................................................................................8
Competitive Strength and Weaknesses...........................................................................................8
SWOT Analysis...........................................................................................................................8
Product...........................................................................................................................................11
Price...............................................................................................................................................12
Place..............................................................................................................................................13
Promotion......................................................................................................................................14
Uncontrollable Variables...............................................................................................................15
Target Marketing...........................................................................................................................16
Buyer Behavior..............................................................................................................................17
Marketing Research.......................................................................................................................18
Perceptual Map..............................................................................................................................19
International Market......................................................................................................................21
References.....................................................................................................................................22
6
Introduction
Jaipur, the capital city of Rajasthan in India is visited many thousands each year for it is
known for compiling the diverse beauty of Rajasthan in its own beautiful way. Tourists pour in
from different parts of the world here to re-live the royal times and soak in the heritage culture of
the place. What if someone can bag this extravaganza without burning a hole in the pocket? It
would be a treat to the travelers who can get best of both the worlds. The idea of a Youth Hostel
in Jaipur serves is exactly the same propaganda. The hostels in Jaipur will aim to accommodate
the colors of Rajasthan at a budget-friendly price.
With limited number, hostels in Jaipur lack the hospitality a tourist would appreciate for years.
My project is to cater to variety of services and look beyond the conventional idea of a hotel.
Services would range from tourism guidance; travel kits, tourism presentations and traditional
food apart from regular facilities like hygienic environment, comfortable beds and dedicated
staff. Moreover, the ambiance of hostel would reflect the royalty of Rajasthan with exclusive
photographs and graffiti of forts and desert, wildlife and culture.
More than the ambiance, the architecture of the hostel will be like of the traditional structures of
the medieval times in Rajasthan. The outside of the hostel will sing the saga of the old times but,
at the same time, the rooms will keep intact the essence of a hostel.
Objective
The basic idea behind a hostel is to carve the essence of the royal culture of Rajasthan and
present it to the travelers with a limited budget. The targeted groups will be student, bag
packers, solo-travelers, travel journalists and large groups of friends. For families, countable
single rooms can be brought it in the first phase of expansion of the hostel. The business will aim
7
at providing comfortable, hygienic environment and best quality standard at affordable price
where people different background, age, group, sex, class, religion can exchange ideas and
experiences. It will aim at providing a comprehensive exposure to the tourists about the culture
and ambiance of the city with assistance on shopping markets and modern tourist attractions.
Layout
Rooms will be single, double and dormitories as mixed and female ones. Rooms will be
bifurcated with 2, 3, 4, 6 (beds) and A/C and non A/C. There will an option of small single
rooms for the guests who prefer privacy. For communication between like-minded people in the
hostels, a common area, preferably in the garden with muddas (traditional chairs) and tables, will
be constructed in an open area for morning and evening teas. This can be a place where guests
can share their travel experiences and photographs over a cup of coffee. A small library of travel
books will also nearby for regular references. The backyard of the hostel will be used as a mini
farm, which is also common in the old houses of Rajasthan. The terrace will also be used for
recreational purpose with seating arrangement, with bonfire in winters, to adore the beautiful
view of the city.
Facilities beyond the list
Besides the infrastructure, the hostel will be a place where one can participate in activities
of responsible tourism with environment saving activities and small volunteering events.
8
Workshops for the travelers can be conducted in the mornings before they leave to explore for
the day where their doubts about the city travel map can be entertained by the local explorer or
the expert hostel staff.
Safety and communication
Security in the hostel will be efficient with CCTV cameras being monitored by expert
security staff. Locker facilities for the guests will also be an option. The internet connectivity in
the hostel will be accurate to cater to the expectations of the guests. The reception assistance will
be accurate with the staff who are equipped with the in depth knowledge of nerve of the city.
Competitive Strength and Weaknesses
SWOT Analysis.
Policies
Government rules and Weather
Competitors
Threats
Income Increasing Standard of
Good Contacts
Native Place Social Media
Opportunities
Distance from Airport
Weaknesses
Tourism Desk
Inherited Property
Heritage Ambience Locatio
n
Price
Strengths
9
1. Affordable Price- With a varied price range depending on the number of beds in the
room, price will be very reasonable. Rooms with single occupancy will cost more than the room
with two beds which will cost more than rooms with three beds and so on till six beds per room.
Room only for women would be cheaper than the normal one. Prices will be relatively lower
than the luxury hotels of the city and at the same time, the hostels will aim at giving the
traditional ambiance. This will become the greatest advantage of the hostel where tourists will
get what they generally look for—a time travel to the royal era of Rajasthan—at prices lower
than any other hotel in the city. Complimentary morning tea/coffee with the morning workshop
will add to one of the gestures hostel will provide to its guest.
2. Tourism Service – The reception assistance will be more than directing the guests to their
rooms. The staff will have the skill to assist any query of the travel for the guests. There will be a
list of events updated every day for guidance for the traveler willing to go to places beyond
tourist attractions. Guest can also ask for pick up and drop facility from Bus stand, Railway
station and Airport. There will be free Wi-Fi for everyone even for the guest who are not willing
to stay and just come for enquiry. Tourism facilities like elephant rides and the famous tiger
safaris in Ranthambore can be booked through the hostel. The tiger safari can be an advantage
for the business as tourists usually struggle to book safaris during the peak seasons due to
unavailability.
We can also arrange or suggest guest to visit nearby villages where they can see village
women milking a cow and cooking food in rural style. Village people carry surplus wheat and
dairy items as they feel happy in sharing their items with tourist people for free. Foreign tourists
are usually seen curious in these sightings of the interior Rajasthan.
10
3. Facilities – 24x7 reception and assistant will be provided. Common Kitchen for the guest
with all amenities will be set up. Special sweet and souvenir on special occasions and festivals
will be add on. Friendly and long term relations will be attempted with the guest so that they
remember their stay in the hostel. Smoking area at backyard is the perfect place for two minute
conversation.
4. Safety – location of the hostel is at porch area of the city, six km from Railway and Bus
stand and not more than 12 km from airport. There will be a helpline number of the hostel and
also for the local police station. For in house guests, there will be locker facilities with good lock
system which will be monitored by CCTV cameras. With a hostel security at the gate of locker
room. To maintain loyalty with the guests, the security guards will be asked to be respectful
towards the guests.
5. Weather – Weather of Jaipur is typically warm and could be a weakness for our hostel.
April to August is a time when the weather of Jaipur rises up to 113 degree Fahrenheit. There is
a decrease in the number of tourist in this time. However, this could be rectified by further
reducing the rates and including interesting tourism packages.
6. Competitors – There are approximately fifty other youth hostels in Jaipur. To position
our place in market would be a tough job. Few hostels are already established with a good
market share and online reviews. To gain attention we have to study market segment and
economy and then react with different approach like establishing market penetration, pricing and
good direct marketing on social media.
11
Product
Jaipur Huts defines all the phases of Product life cycle. Introduction to decline hostel face
all the stages depending on the number of traveler coming to the city which is directly related to
tourism.
Youth hostel for travelers to provide accommodation to provide good facility and
services which is not common in other hostels. It is a service oriented business with a motive to
establish long lasting relationship with the guest. Hospitality is first priority. Youth hostel
contains staff with two receptionist four security staffs with alternative shifts between two
guards, four people for housekeeping and four people in kitchen with manager on duty. Drivers
are available on a call and good working contact with tour guides will be maintained to ease the
planning for the guests. Receptionist will also be responsible for the online booking and making
reservations. There will be a few people working at the back of the office working on the website
and various social networking sites of the hostel and to promote and improve it.
Front garden and back area are advantages to live in the hostel. There will be fresh grown
vegetables in the backyard which can be used for cooking food on special preference from the
guest. Backyard will be designed in a way which can be used to chill out and have some good
time on a tea also best place to take picture and capture memories. Garden gives the feeling of
old Mughal gardens which also reflects the architecture of Jaipur.
12
Price
The prices of the rooms will change according to season and availability. Normally,
prices are initially kept cheap to attract guests and establish position in the market. We can
referred as Market Penetrating Pricing to occupy large number of guest and market share. The
price of a single room varies from $13 to $15 per night, while the price of a shared room is $5 to
$10 per night, and the dormitories are priced at $3 to $8 per night. There are special rooms
exclusively for women whose price varies from $8to $10 per night. Price of a room is inclusive
of all the utilities and services. Food can be ordered from the hostel kitchen, for which there is a
separate menu and rate. There will be separate charges for taxi service apart from pick up and
drop facility. Wi-Fi is free, and there will be no charge for tea and coffee.
This price is considered cheap as compared to other hostels. Keeping the competition in
mind, our prices will change according to the season and competitor behavior. We will have to
improve the standard and quality while keeping prices low to establish long-term customer
relations.
Push and Pull marketing strategy will be used to attract guests to our hostel. Word of this
service oriented business can reach customers through heavy promotion via mass media and
social networking. The main target would be tourists and travelers from abroad who visit India.
Most visitors are from the United States, followed by the nations of United Kingdom,
Bangladesh, Sri Lanka, Canada, Germany, France, Japan, Australia and Malaysia. For initiating a
pull marketing strategy, there will be a strong social media pitch in the United States and the
United Kingdom. Being new to this business, my aim is to raise the brand awareness about my
hostel among the target market. My duty is to make sure that whatever promotion is done
reaches the target market and gets noticed. This can be achieved by designing a good website. As
13
a student from an American University, I am better placed to approach American citizens, and
forge both professional and personal contacts. This would be the major advantage I have.
Place
Jaipur, also known as ‘Pink City’, is the capital city of the state of Rajasthan, and is one
of India’s most beautiful tourist destinations. It is situated within a radius of 250 km from New
Delhi and Agra, the city in which stands the majestic Taj Mahal. The cities of Jaipur, Agra and
New Delhi are collectively referred to as the Golden triangle. The expansive Thar Desert also
lies in Rajasthan. The state is famous for its rich culture, heritage, its numerous and valiant
rulers, life styles, delicious cuisine, sophistication and hospitality. The land still preserves the
aura of royalty through the imposing palaces, most of which haven’t been converted into
Heritage hotels. Needless to say, the state has a vast and intriguing history worth exploring. One
of the oldest mountain ranges on earth, older than the Himalayas in fact, the Aravallis, also lie in
the state. Also famous in Rajasthan are its monuments, the camel safaris, Tiger reserves and Jain
temples. For those who seek thrill of a different kind, the town of Bhangarh is considered one of
the world’s most haunted places.
Several festivals take place in the city, like the Jaipur Literature Festival, Gangaur festival and
Teej festival, which draw tourists from everywhere. Vintage car rallies, Polo matches and
elephant rides are events which give the tourist a royal experience.
Jaipur holds the 10th position in domestic tourism, and fifth place in foreign tourism. A total of
1.53 million Foreign tourists visited the state in 2014 according to the Union Ministry of
Tourism.
14
Weather is a very important factor in Jaipur. One of the warmest cities in India, the best
time to visit it is from October to March, with winters being mild. Very few tourists visit Jaipur
in summers.
July marks the advent of the monsoons, and for those who love nature and rain, it is a
perfect time to see the Pink City in its natural hue. Since tourist are few during this time, hotels
and hostels offer special deals on a regular basis. Teej is celebrated during August, during which
a colorful bazaar comes up that includes a plethora of sweet vendors selling traditional sweets,
and dance and music performances by local artists.
Promotion
Promoting the Hostel would be both exciting and tough. The aim is to introduce Youth
Hostels to the traveler who believes in adventure travelling. Essentially, our target market would
range between the age group of 18 to 40 years. The slogan for the promotion would be “To
Travel is to Live”. Advertising could be done via active promotion, on Facebook, i.e., Social
media. A Facebook page of the hostel would be created along with various details and contact
information. Further promotion can be done by putting up facts about the place and details of the
adventurous and unique tourism service provided by the hostel and Sales Promotions by giving
discounts coupon. Any connections in the US and the UK would be a plus point, which works to
my advantage as I have good connections both within and outside India. Moreover, there are
several hotels and resorts owned by my relatives in different cities, and they too can endorse my
hostel.
We will do direct marketing through my friends who are into camping and
mountaineering, and who organize different activities for adventure seekers. Pamphlets and
15
postcards will be distributed to such places, but to make it more effective we will have a
representative on those places. Postcards will also be distributed at different cafés, bars,
restaurants, tourist places, and public spaces like bus stands, railway stations and airports. The
primary aim of our promotion is to forge a friendly and trustworthy relationship with our
guests.
Uncontrollable Variables
1. Demographic- The hostel is without doubt located at a tourist destination but there are a
few drawbacks. The people who are interested in bag-packing and adventure are small in number
as compared to the population worldwide. We need to be very specific about our target market
and should focus on those people. There is also an advantage, as a sizeable number of tourists
come to India for either adventure tourism or wildlife tourism, or both. Our hostel can focus on
both the segments. A lot of focus will have to be on selling our rooms, for which we will have to
adopt an aggressive selling technique.
2. Climate- The climate of Rajasthan is typically warm. In Jaipur, temperatures during
summers go up to 113 degree Fahrenheit, which reduces tourism. Hence, from May to August,
very few tourists come to Jaipur. Most of those who do come in these months arrive to shoot
documentaries. Winter sees a bloom in tourism. Jaipur has moderate winters with a minimum
temperature of 41 degree Fahrenheit. This is also the best time to visit places like the
Ranthambore Tiger Reserve and the various forts and palaces. During monsoon, the Aravalli
Mountains turn lush green, while this is also the perfect time to visit the stark landscapes of Thar
Desert.
3. Social and cultural forces- The social and cultural environment is very diverse in Jaipur.
Frequent festivals bring people close and many events are celebrated with dance, music and
16
traditional games. The Pushkar Mela is a very famous festival, and is attended by about 6,000
foreign tourists, and higher numbers of domestic ones. The interiors of the hostel and its
architecture are designed to reflect the cultural diversity. Our service too will aim to show our
guests the richness of the culture. The Hostel is also meant to accommodate bag-packers and
provide them with a place where they can talk, share their thoughts and further discover the
culture.
4. Competition – We have to critically look for novel selling techniques to become better
than the competition. Some aspects to consider would be when to lower the room tariff and when
to increase it, how the competitor establishes a price, and what services they offer to their guests.
Target Marketing
The target market would be people in the 18 to 40 age group. Males are more frequent
travelers than females. Most tourists want to stay in a peaceful place an increasing number of
people travel to Jaipur for adventure and wildlife, and their main preference is to get a clean and
safe place to stay. Private rooms in a hostel will be provided as a secondary choice for those who
want to avoid the noise from other hostel mates. From a demographic point of view, I think our
target market would be people from all religions, race, and caste. Our emphasis would obviously
be on the US and UK citizens. These are the people who don’t compromise with the stay and
want everything to be perfect, whereas domestic tourist are more flexible in their demands. To
get maximum foreign tourists, we need to cater to their standards of living, and need to find out
their preferences.
There is an increase in the number of students who are travelling. Normally, after
graduating from high school, many prefer traveling with friends before starting a job or higher
17
education. They only need simple and cheap accommodation, where they can relax and talk for
long hours even during the night. Dormitories of six beds would be the ideal package for such
students. Students would be a round-the-year market, and we will give them favorable services.
Many people come to Jaipur to learn Yoga and Hindi. Many become followers of Lord Krishna
and Lord Shiva. These are the guests who stay in hostels for long durations 10 to 20 weeks and
for them we will have special packages on a daily basis. It is difficult to classify them, but they
normally come alone and make several friends.
To promote my hostel, my focus would be on adventurous people, those who explore
different places, cultures and cuisines, biking groups, trekkers etc. April is the month when a
number of such people visit Jaipur.
Buyer Behavior
A hostel is a service oriented business, and buyer behavior would be according to price,
security, proximity to the city-center and other food joints, cleanliness, amenities available, and
the atmosphere, because different guests prefer different kinds of places. A communal kitchen,
laundry services, internet service, recent reviews etc. are important factors, since buyers are very
conscious about picking a place to stay.
There might be some drawbacks because of security issues for women in the country.
Therefore, a lot of couples who have India on their list might end up dropping it. People of
younger age groups normally look for affordable, clean and safe places, and prefer happening
places. There are some customers who travel alone, who only drop in for a day or two. On the
other hand, there are some who stay longer and want to enjoy the joys of the city. They will
usually consult the hostel about the place and might even want transportation.
18
Marketing Research
There are around 50 Youth hostels in Jaipur. All of them are working hard to position
themselves in the market. About 30 million foreign tourists come to the state annually. Most
hostels are running successfully because of the thriving tourism in Rajasthan. Travelers who stay
in hostels are usually friendly and socialize easily.
I talked to several people who stayed in hostels, and asked them of their preferences.
They told that the first thing they look for is a clean environment, and then the price, with safety
too being of paramount importance. The lockers they get should be good enough for them to
store their valuables, and reaching different places of interest should be convenient. They will
prefer that the hostel provides them with a guide map, and also if it can help them with local
issues such as arranging drivers and local mobile sim cards.
State marks its ranking as 5 and 10 for Foreign and Domestic tourist respectively. The
growth rate of 9.17 for domestic and 6.15 for foreign tourist. Tourist from The United States
rank 1 with 14.57 percent of share in 2014 followed by United Kingdom with 12.27 % share,
Bangladesh with 10.92% share, Sri Lanka with 3.93% share, Russian Federation with 3.51%
share according to the State/union territory Tourism department.
Perceptual Map
Brand Service Price in Dollar Market Share
19
The Moustaches 4 7 30%
Bunkstop 3 5 25%
Zostel 5 8 30%
Jaipur Huts 5 3 15%
Perceptual Map showing the difference between the prices from dollar 1 to 10 and type of
service provided from 1 to 5. Which shows that the Zostel hostels are little expensive and
providing excellent service with a good market share. The Moustaches hostels are somewhat
higher in price but fail to provide guest satisfaction. Bunkstop hostel is cheap with room rate but
lacking in guest satisfaction. Jaipur Huts new in the market with smaller market share still holds
a position in the map because of the price penetrating strategy.
Price
Service
Jaipur Huts
Zostel
Bunkstop
Moustaches
20
International Market
Hostels accept a large number of International guests. It is a long-term business, and can
be improved by making a long-lasting customer relationship by providing good service. India is a
tourist destination and the number of tourists are expected to increase every year. While
innumerable domestic tourists come to Jaipur throughout the year, international tourists mostly
come from countries like the US, UK, Bangladesh, Sri Lanka, Canada, Germany, France, Japan,
Australia and Malaysia. There are quite a number of International markets where we can promote
our hostels and attract guests. Citizens of some countries, such as Brazil, Japan and the smaller
European countries, rarely come to India. My aim is to reach them with good plans and packages
and to establish friendly relations with them. Language is most likely to be the problem which
restricts the Brazilians and the Japanese to visit India. Hostel business has a huge international
market, and it depends on the owner and the management as to how he/she can reach a large
number of countries.
Indian Currency is Rupees, which is very low as compared to US Dollars and UK pounds. The
exchange rate is 1 USD (United States Dollar) = 66 INR ( Indian Rupee) and 1GBP (Great
Britain Pounds) = 100 INR. This could be a major reason for the United States and United
Kingdom travelers to spend in Indian tourism.
References
Ministry of Tourism Government of India. (2014). Retrieved from
http://tourism.gov.in/marketresearch-and-statistics
21
Travel and tourism sector: Potential, opportunities and enabling framework for sustainable
growth. (2013, December 7). Retrieved from
http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPMG-CII-
Travel-Tourism-sector-Report.pdf
Youth Hostel Association of India. (n.d.). Retrieved from http://www.yhaindia.org/about-
youthhostels.html
![Final Project Marketing[1]](https://img.pdfslide.us/doc/110x75/5465ef2eb4af9f301e8b4e5b/final-project-marketing1.jpg)
