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CHAPTER-I
INTRODUCTION
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INTRODUCTION
Mahindra Holidays & Resorts India Ltd. Is a part of the USD 6.7 billion Mahindra
Group, one of India‘s leading Industrial Houses. The Group has interests in
various sectors such as Automotive, Auto Components, Farm Equipment, Trade &
Financial Services, Infrastructure and Information Technology. Mahindra &
Mahindra has a successful track record as the Market Leader in each Sector.
Mahindra Holidays & Resorts India Ltd., (MHRIL) a part of the Infrastructure
Sector of the Mahindra Group, brings to the industry values such as Reliability,
Trust and Customer Satisfaction. Started in 1996, the company‘s flagship brand
‗Club Mahindra Holidays‘, today has a fast growing customer base of over 60,000
members and 15 beautiful Resorts at some of the most exotic spots in India and
abroad.
Mission - The Company's Mission is to enrich and enliven people‘s lives by
making family holidays a part of their lifestyle.
Vision - The Company‘s Vision is to become a dominant player in the Lifetime
Holiday business in Asia and eventually the world.
Globe Trot with Club Mahindra
A Club Mahindra membership gets you access to over 4000 resorts across over 90
countries. Holidaying abroad is made extremely economical – a simple nominal
exchange fee paid for in Indian rupees gets you holiday accommodation for the
entire family.
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Mahindra Holidays & Resorts, popular under its flagship brand 'Club Mahindra
Holidays was founded in 1996 to provide holidays on a timeshare basis. Club
Mahindra started with a single resort in Munnar in 1997. Presently, the company
has over 30 resorts in India and abroad. The majority of these properties have been
acquired by the company on a lease basis from their owners. In 2006 it was
reported that the company is working towards acquiring and building additional
resorts all over the world.
Club Mahindra is also an RCI affiliate. As of 2010, ten of the Club Mahindra
resorts were accredited with the RCI Gold Crown award. Mahindra Holidays and
Resorts India Ltd., part of the Rs. 6,000 crore [USD 1.2 billion] Mahindra Group,
is a company firmly on the growth path. Club Mahindra's mission is to enrich and
enliven people's lives by making family holidays a part of their lifestyle.
Fun and games, indoor and outdoor activities, designed specifically to cater to all
ages and specific recreational facilities ensure that every holiday you take will be
special. Resort:Goa, Munnar, Binsar, Manali, Mussoorie, Kufri, Bangkok,
Corbett, Poovar.
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COMPANY PROFILE
Mahindra & Resorts India Ltd., (MHRIL) is a part of the Infrastructure Sector of
the Mahindra Group. Started in 1996, the company‘s flagship rand ‗Club
Mahindra Holidays‘, today has a customer base of over 100,000 members and
over 30 resorts in India and abroad. Since its inception in 1996, industry analysts
have been surprised about Mahindra, which many consider to be a "Jeep and
Tractor company", foray into the timeshare business. The move has been part of a
diversification plan of Anand Mahindra, the group vice-chairman. The company
recruited Ramesh Ramanathan as CEO to kickstart operations.
It was supposed to be an innocuous briefing on a new business proposal, recalls
Arun Nanda, chairman of Mahindra Holidays and Resorts India Ltd, of a meeting
in the mid-1990s that he had with Anand Mahindra, vice-chairman of Mahindra
and Mahindra Ltd. The agenda was to evaluate the concept of timeshare—a form
of ownership or right to use a property, typically a holiday resort—as a potential
new business opportunity to diversify the group‘s interests from manufacturing
tractors and utility vehicles.
According to Mr. Arun Nanda plans to give up all executive
positions in the group from 1 April while remaining chairman of
Mahindra Holidays.
Nanda took along to the meeting a bunch of clippings to make his case for a
business that, in those days, made news for all the wrong reasons, such as dubious
promoters and fly-by-night operators. What swayed Mahindra into green-lighting
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the proposal was that no newspaper questioned the concept of timeshare as a
business, per se.
Mr. Arun Nanda Chairman, Mahindra Holidays & Resorts India Limited
(MHRIL). Mr. Arun Nanda holds a Degree in Law from the University of
Calcutta, is a fellow member of the Institute of Chartered Accountants of India
(FCA) and a fellow member of the Institute of Company Secretaries of India
(FCS). Mr. Nanda has also participated in a Senior Executive Programme at the
London Business School. He joined the Mahindra Group in 1973. He has held
several important positions within the Group and was also the Company Secretary
of Mahindra & Mahindra Limited (M&M) from 1987 to 2006.
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BOARD OF DIRECTOR
REGISTERED & CORPORATE OFFICE
Mahindra Towers, 17/18, 2nd Floor, Patullos Road, Chennai – 600 002,
Tamilnadu, India. Tele: +91 44 39881000, Fax : +91 44 30277778
Company Secretary & Compliance Officer
Tele No: +91 44 39881000, Fax No: +91 44 30277778
Email Id: [email protected]
REGISTRAR & SHARE TRANSFER AGENT
M/s. Karvy Computershare Private Limited
Unit: Mahindra Holidays & Resorts India Limited
Plot No.17-24, Vittalrao Nagar, Madhapur, Hyderabad – 500 081,
Andhra Pradesh, India. Tele no: + 91-040-23420815 to 820,
Fax No.: + 91-040-23420814/57, E-mail: [email protected]
Mr. A.K. Nanda, Chairman
Mr. Cyrus J Guzder
Mr. Rohit Khattar
Ms. Rama Bijapurkar
Mr. Rajiv Sawhney, Managing Director & CEO
Mr. U.Y. Phadke
Mr. Vineet Nayyar
Mr. Sidar A Lyengar
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Incorporated on 20 September 1996, Mahindra Holidays received an infusion of
Rs18 crore from the group to start its business. The venture turned out to be a rare
multi-bagger; Mahindra Holidays, which raised Rs180 crore in a June initial
public offering (IPO) that saw demand for 10 times the stock on offer, now
commands a market value of around Rs3,000 crore.
The company‘s flagship Club Mahindra Holidays brand has a customer base of at
least 100,000 members and around two dozen resorts in India and abroad, offering
holiday activities ranging from indoor games to adventure sports, water sports,
camping and treks. For the group, timeshare was the second attempt at entering the
hospitality sector. A 50:50 joint venture with Accor SA, Europe‘s largest hotel
company today, had proved to be short-lived. In hindsight, the decision to end the
venture with Accor and cut losses was a prudent move, says Nanda, a Mahindra
veteran of 36 years, who joined as an accountant in the management trainee cadre
and plans to give up all executive positions in the group effective 1 April while
remaining chairman of Mahindra Holidays and Resorts. ―The hotel business is a
very capital-intensive business and it‘s not easy to become the No. 1 player in the
segment, as the capital requirement is very high,‖ Nanda said in an interview from
his fifth floor office in the red brick headquarters of the Mahindra group, a
signature building in Mumbai‘s Worli area. In the conventional hotel business, the
promoter would need to invest for six-seven years before reaping any returns. ―It
takes years to make a profit, two-three years to build the business; whereas in this
business, you sell timeshares today and give the right to use 12 months later.
Hence, financially, the timeshare business model requires low capital,‖ Nanda
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says. Analysts agree that the business model works, obviating the need for
timeshare companies to borrow.
―Securitization of membership fees gives the company access to lump-sum
money. As the company retains the title of the property, it provides holiday resorts
services over a period of time to members.‖ The Indian timeshare industry has
posted a compounded annual growth rate of 15% since 1998, and growth is
expected to accelerate, said the same report.
The timeshare concept was viewed with suspicion in the 1990s when it first took
off in India. Because enlisting more and more new members is what helps the
business expand, some thought it was akin to a Ponzi scheme—a business that
pays returns to investors from their own money or money paid by later participants
than from actual profit. Many fly-by-night operators entered the business and
vanished with the money of customers or folded up, tarnishing its reputation
further.
Running a hotel chain is vastly different from operating a timeshare business. It
requires time and effort to gain a catchment of around 100,000 members, crucial
for the success of the business. To attract members, a timeshare operator needs to
build a chain of resorts and hire staff to service the resorts.
―We created destinations,‖ Nanda says. ―Munnar (in Kerala), for instance, was not
known, except for Tata Tea Ltd‘s tea gardens. When we went to Munnar, the land
price was 2-5% of the present real estate rates.‖
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NO TO WESTERN MODEL
Mahindra also took a conscious decision not to ape the Western model, which
offers customers a fixed-time, fixed-location holiday destination, and little else by
way of service.
Club Mahindra customers pay between Rs1.5 lakh and Rs7.67 lakh as a 25-year
fee, the amount depending on the size of the holiday accommodation—from studio
flats to two-bedroom apartments— and the season. The business model seems to
be working. Edelweiss‘ Vijay says: ―The company gains as it gets the membership
fee upfront and uses the money to create resorts. We expect the company to
generate free cash flow of Rs500 crore‖ over 2010-12. In the quarter ended
September, Mahindra Holidays posted a net profit rise of 38% to Rs28.07 crore
from a year earlier on revenue of Rs119.95 crore.
Mahindra gets a lot of its business—almost 45% of it— on referrals from existing
members, says Ramanathan, managing director of Mahindra Holidays. For
Mahindra Holidays, only 60% of the income accrues from new member
subscriptions, with the rest coming from annual fees, interest income, and services
such as food and extra-curricular activities offered to customers, he says.
SIGNING UP NEW MEMBERS
To be sure, scaling the business and funding the purchase of new properties is only
possible by enlisting new members. ―We believe that the company is ill-equipped
to handle any significant increase in its eligible customer base, even on planned
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expansion,‖ analysts Pritesh Chheda and Sachin Bobade of Emkay Share and
Stock Brokers Ltd wrote in a 23 June research note before the company‘s IPO.
Mahindra Holidays and Resorts India Limited (MHRIL) offer a range of solutions
to its customers with its range of products and services. It includes Club Mahindra
Holidays, Zest, Club Mahindra Fundays, Mahindra Homestays and
clubmahindra.travel. Club Mahindra Holidays is engaged in the vacation
ownership business. Zest, another product of the Company in the vacations
ownership space entitles its members short breaks for six nights each year in
studio apartments for a period of 10 years. Club Mahindra Fundays is a corporate
product-based on the point-based system. Mahindra Homestays provide the
customers with choice of homes across different budget categories and property
types. Club Mahindra Travel is a travel integration service for Club Mahindra
Holidays‘ members to take care of their range of travel needs from
accommodation to the deals on air tickets, complete holiday packages, replete with
sightseeing tours and meals to documentation requirements.
Club Mahindra Travel - is an effort by Mahindra Holidays and Resorts India
Limited to offer a one stop online travel bazaar that offers all travel related
services.
Parentage - Mahindra Holidays & Resorts India Ltd. Is a part of the USD 6.7
billion Mahindra Group, one of India‘s leading Industrial Houses. The Group has
interests in various sectors such as Automotive, Auto Components, Farm
Equipment, Trade & Financial Services, Infrastructure and Information
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Technology. Mahindra & Mahindra has a successful track record as the Market
Leader in each Sector.
Mahindra Holidays & Resorts India Ltd., (MHRIL) is a part of the Mahindra
Group. Started in 1996, the company‘s flagship brand ‗Club Mahindra Holidays‘
is the largest vacation ownership brand with more than 30 beautiful Resorts at
some of the most exotic spots in India and abroad. MHRIL launched its third
holiday brand, ‗Zest‘ in the month of November 2006.
Mission - The Company's Mission is to enrich and enliven people‘s lives by
making family holidays a part of their lifestyle.
Vision - The Company‘s Vision is to become a dominant player in the Lifetime
Holiday business in Asia and eventually the world.
Domain Expertise - Over the last decade, MHRIL have established themselves as
market leaders in the family holidays business. The company have followed a two
pronged strategy – rapidly increasing its bouquet of resorts to provide more variety
in holidaying options and enhancing its service levels to its members to provide
delight at every point of interaction.
All MHRIL resorts are totally geared to cater to a variety of holiday needs and
experiences in all areas of operation, from housekeeping to food & beverage to
holiday activities. Creating and managing the holiday experience is a core
strength.
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National Network - Club Mahindra has established a nationwide reach by setting up
a network of offices. It has 19 offices spread across the country with a team of over
200 marketing and support executives who are specifically trained on service
standards that Club Mahindra is benchmarking in the industry.
Activities - Club Mahindra endeavors to make holidays enjoyable. The company
trains latent talent across resort to form a team of ‗Champs‘, who work on creating a
'comeback value' based on 'experiences.' Activities are designed specifically to cater
to all ages. The ability to anticipate customer needs and delivering them has been a
major strength of the company. The range of activities span adventure sports,
watersports, camping, treks, indoor family games and hobby programs for children
and adults. Apart from those above, specific recreational facilities that include a fully
equipped gymnasium, swimming pool, and ayurvedic center form part of Club
Mahindra‘s resorts.
Personalized Service - The service in all the resorts is professional and highly
personalized. From choice of food, Holiday activities and personal touch in dealing
with guests, Club Mahindra benchmarks expectations and redefines entitlements.
„State of the art‟ Information Infrastructure - As a measure of providing quality
customer service, Club Mahindra has established systems which enable
professionalism, efficiency and quality at all times.
Member Relations Center - A dedicated, well trained team of holiday consultants
work out of the ‗state of the art‘ Member Relations Center at Chennai.
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A local call number provides easy and direct access to the Call Centre seven days
a week.
Description This is a logo for Club Mahindra Holidays.
Source http://www.clubmahindraresort.in/images/Mahindra-logo.gif
Article Club Mahindra Holidays
Portion used
The entire logo is used to convey the meaning intended and
avoid tarnishing or misrepresenting the intended image.
Low resolution?
The logo is of a size and resolution sufficient to maintain the
quality intended by the company or organization, without
being unnecessarily high resolution.
Purpose of use
The image is used to identify the organization Club
Mahindra Holidays, a subject of public interest. The
significance of the logo is to help the reader identify the
organization, assure the readers that they have reached the
right article containing critical commentary about the
organization, and illustrate the organization's intended
branding message in a way that words alone could not
convey.
Replaceable? Because it is a logo there is almost certainly no free
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equivalent. Any substitute that is not a derivative work
would fail to convey the meaning intended, would tarnish or
misrepresent its image, or would fail its purpose of
identification or commentary.
Other information
Use of the logo in the article complies with Wikipedia non-
free content policy, logo guidelines, and fair use under
United States copyright law as described above.
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GLOBAL OVERVIEW
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The first and foremost requirement for foreign nationals to enter in the country is
to get a valid travel India Visa and should possess valid passport of their country.
There are three kinds of Travel visas for tourists.
1. The 15-day single I double entry transit visa. This Travel visa is valid for
30 days from the date of its issue.
2. The 3-month multiple entry visa. This Travel visa is valid for 90 days from
the date of first entry into India, which must be within 30 days from the
date of its issue.
3. The 6-month multiple-entry visa. This Travel visa is valid for 180 days
from the date of its issue, not from the date of entry into India.
4. It is virtually impossible to get the 15-day or 3-mont visa extended. Only
the 6-month tourist visa can be extended. It can be quite a bother to extend
it beyond a 15-day period. Avoid it unless there is an emergency. A 15-day
extension on the 6-month visa is issued by Foreigner's Regional
REGISTRATION OFFICE (FRRO)
5. There is no provision of 'Visa on Arrival' in India and no fee is charged for
immigration facilities at the airports. Foreign passengers should ensure that
they are in possession of valid Indian Visa before they start their journey to
India except nationals of Nepal and Bhutan who do not require visa to enter
India and nationals of Maldives who do not require visa for entry in India
for a period up to 90 days (a separate Visa regime exists for
diplomatic/official passport holders).
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6. For student VISA holders: - FRRO can extend the Student Visa for
duration of the course or for a maximum period of 5 years, whichever is
less, to bonafide students coming to India to join well-known institutions
subject to fulfillment of conditions prescribed. The visa fee for a student for
the duration of the course or for a maximum period of 5 years, whichever is
less, is US$ 75, but it remains a one time fee for duration of the course and
all extensions within this duration are given free of cost. An additional fee
of US$ 75 has to be charged for change in course/subsequent course.
7. For Research VISA holders: FRRO can extend the VISA on the
accreditation of the Ministry of Human Resource Development till the
completion of Research work.
www.clubmahindra.com Club Mahindra Holidays provides more variety in
holidaying options and high service levels to its
members to provide delight at every point of
interaction
www.zestbreaks.com Zest is the new short break getaway holiday
product from Mahindra Holidays & Resorts India
Ltd.which caters short break needs of the young
Indian metropolitans
www.mahindrahomestays.com Mahindra Homestays is an effort by Mahindra
Holidays and Resorts India Limited to organize
the growing Homestay industry in India and
market it under a strong brand. Mahindra
Homestays has set up a pan-India network of
homes that delivers the real India through an
enriching host- guest interaction.
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SERVICE OFFERED BY CLUB MAHINDRA
Designed on traditional Kodava architectural style with strong Ayurveda
influences, the spa is situated near the remains of an ancient healing center.
Svaastha at Coorg has over 9000 sq. ft. of built space.This spacious facility
accommodates six indoor and two outdoor spa therapy rooms, a well-equipped
gym, beauty salon, relaxation deck and Yoga & Meditation deck.
For Yoga and Meditation programs, Mahindra Holidays has tied up with the Art of
Living.
Three new Club Mahindra resorts join RCI:
Three more resorts of Club Mahindra are now affiliated to joined RCI. The new
resorts are Nature Trails in Corbett on the banks of the Kosi river in Uttarakhand;
Royal Demazong in Gangtok, and Whispering Pines in Mashobra hill station,
Shimla. Image: the pictures of the three resorts.
Derby Green, now open:
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The landmark & historic resort is located on five and a half acres of beautifully
landscaped gardens and is an exquisite combination of modern amenities & old
world charm.
The old colonial structure has been painstakingly refurbished and is located in the
heart of Ooty town overlooking the race course. The resort has 91 Rooms, a multi
cuisine restaurant- Ascot, Svaastha spa and holiday activity centre.
Kumbhalgarh
Light & sound Show at Kumbhalgarh Fort:
Club Mahindra Guests can now witness the historical moment in the history of
Kumbhalgarh fort, thanks to the Light & Sound Show at Kumbhalgarh Fort. The
show covers the history of Kumbhalgarh Fort since inception till the reign of great
patriot Maharana Pratap. The fort is having 32KM long wall, which is said to be
the 2nd longest wall in world after wall of China.
Kumbhalgarh
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Even as Club Mahindra continues to acquire and build properties in new
destinations, your existing Club Mahindra resorts have been expanded and offer
brand new facilities. On your next trip, you can look forward to an even more
refreshing holiday ambience and experience.
The newly erected tents at Club Mahindra Fort Kumbhalgarh will offer you the
most comfortable stay, while you experience how traveling royalty used to live.
Enjoy a relaxing morning outside your tent at Kumbhalgarh.
Ashtamudi
You will soon be able to stay in a floating cottage at Club Mahindra Backwater
Retreat, Ashtamudi. Every cottage is connected to land by a bridge. Relax and
enjoy the gentle movements of the cottage as it dances on the water. Surround
yourself with nothing but the mysticism of the Ashtamudi Lake. A floating cottage
on the Ashtamudi backwaters.
Goa
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Pamper your senses in Club Mahindra‘s innovative ‗Svaastha‘ spa at your Goa
resort. Svaastha, The Harmony Spa - Varca Beach, Goa
Coorg
Club Mahindra Kodagu Valley at Coorg has recently seen many additions. Apart
from 188 apartments, the new restaurant, ‗Green Cardamom‘, offers a
mouthwatering range of fun dining cuisine. Relax with a drink in hand in the
swank bar, ‗Planter‘s Club‘. Spend time in the brand new holiday activity centre.
All this and more!
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Binsar
Have you ever spent the night in a luxury tent? Or stayed in a log hut? What about
a holiday in a floating cottage? You can now holiday at the all new Manipur Villa
Resort at Binsar, which offers log huts imported from Australia. From the cosy
warmth of your log hut, perched high above Club Mahindra Valley Resort at
Binsar, enjoy unbroken views of the majestic Himalayas. Enjoy Himalayan views
from the cosy comfort of a log hut at Binsar.
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DESTINATIONS
Kerala is splendid with its lush green coconut trees, the serene backwaters and the
soothing Ayurvedic massages. The unique feature of Kerala is its backwaters. It
has a network of lakes, canals, and rivers opening into the Arabian sea. The canals
connect villages and are still used for local transport. The backwaters are self-
supporting eco-system full of aquatic life. Ashtamudi is the second largest
backwaters in Kerala.
Ashtamudi means, 'eight-armed'. It is a palm-shaped extensive water body with
eight prominent arms, adjoining the Kollam town. The lake is 55 kms long and is
divided into eight creeks. The arms converge into a single outlet at Neendakara
near Kollam, to enter the Lakshadweep sea. This estuary is the deepest among all
the estuaries of Kerala with a maximum depth of 6.4 m at the confluence zone.
Ashtamudi lake is famous for its magnificent landscape views. There are coconut
groves and palm trees all along the banks of the lake and the uniformity is broken
by the quiet town of Kollam. The Kollam Boat Club offers boats to cruise in the
lake. You can enjoy a remarkable backwater tour starting from Kollam to
Alappuzha. You can see the famous Chinese fishing nets beside the coconut
palms, all along the banks. Kollam was the port of international spice trade. Thirty
percent of this historic town is covered by Ashtamudi Lake. The eight hour trip
between Kollam and Alappuzha is the longest backwater cruise in Kerala.
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RESORT ARCHITECTURE
The resort offers a total of twenty five rooms, spread across five chalets.This
includes three suites. All rooms are furnished, air conditioning, tea coffee making
facility, mini refrigerator and wall mounted LCD Televisions with DVD players.
From every room you have a beautiful view over the garden and the lake.
26
Club Mahindra Fundays
People, to any organisation, are the most critical factor in ensuring success. And
organisations go to great lengths to ensure their well-being. Flexible timings, relaxed
working environments and more. But, even as organisations are implementing best-
practices to keep their workforce motivated, they face issues such as attrition,
absenteeism and high stress levels.
Stress relief is the key to ensure productivity. And nothing achieves that better than for
an individual to spend some time with his/her family, doing fun things. And enjoying
time away from it all, in locations far removed from the ordinary. In other words, a fun
filled family holiday is one of the best ways to beat stress. But how do you give your
associates a great holiday?
Different people have different ideas about what makes a perfect holiday - for some, it
is a few quiet days in the hills of Munnar, for others it is lazing by the beach, and for
others it is an adventurous trek up the Himalayas. Planning for and making sure that
everyone of your team gets the holiday they most want is both a complex and time-
consuming task. Is there an easier way to do it?
Club Mahindra Fundays is simple. It is based on a world-class points system, which
makes it flexible and customizable to your every need.
Club Mahindra Fundays is scalable. Add points, upgrade your membership and
fight inflation. All this is possible, only with a Club Mahindra fundays membership.
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Club Mahindra Fundays gives you more. 15 destinations, across India and abroad,
access to over 3700 RCI affiliated resorts across the world, a one-point contact and
dedicated relationship manager, travel services, and more. It helps you motivate your
team, with great family holidays in 15 of the most popular holiday destinations in
India and abroad. Club Mahindra helps you give your associates an enriching work
experience and a great time away from it. Club Mahindra Fundays brings to you the
power and flexibility of India‘s largest holiday company, and helps you customise
fantastic family holidays for your associates very easily.
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GROUP OF CLUB MAHINDRA
Parentage
Mahindra Holidays & Resorts India Limited is part of the USD 7.1 billion
multinational Mahindra Group. With over 112, 000 employees in 79 countries across
the globe, the Group is also among India‘s top ten Industrial Houses. The Group has
interests in aerospace, aftermarket, agribusiness, automotive, components, consulting
services, defense, energy, farm equipment, finance and insurance, industrial
equipment, information technology, leisure and hospitality, logistics, real estate, retail,
and two wheelers.
Company
Mahindra Holidays & Resorts India Ltd., (MHRIL) is a part of the Infrastructure &
Realty Sector of the Mahindra Group and brings to the industry values such as
Reliability, Trust and Customer Satisfaction. Started in 1996, the company‘s flagship
brand ‗Club Mahindra Holidays‘, today has a fast growing customer base of over
100,000 members and 27 beautiful resorts at some of the most exotic locations in India
and abroad.
Domain Expertise
Over the last decade, MHRIL has established itself as a market leader in the family
holidays business. The company has followed a two pronged strategy – rapidly
increasing its bouquet of resorts to provide more variety in holidaying options and
enhancing its service levels to its members to provide delight at every point of
29
interaction.
All MHRIL resorts are totally geared to cater to a variety of holiday needs and
experiences in all areas of operation, from housekeeping to food & beverage to holiday
activities. Creating and managing the holiday experience is a core strength.
„State of the art‟ Information Infrastructure
MHRIL has made significant investments in ‗state of the art‘ IT systems to streamline
its operations and processes towards smooth, quick and efficient management of its
substantial member base. The implementation of a CRM system has been a powerful
tool to track important member information and preferences, thus providing the ability
to greatly enhance the total holiday experience.
As a measure of providing quality customer service, Mahindra Holidays has established
systems which enable professionalism, efficiency and quality at all times.
Timeshareware - A Sales & Marketing, Reservations & Resort Operations software
specially sourced from PCC Inc, Utah, USA.
HEP (Holiday Experience Profiling) A touch screen solution implemented at resorts to
record online feedback from members / customers while still on holiday. This helps
ensure consistent standards of service.
Globe Trot with Club Mahindra
A Club Mahindra membership gets you access to over 6000+ resorts across over 90
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countries. Holidaying abroad is made extremely economical – a simple nominal
exchange fee paid for in Indian rupees gets you holiday accommodation for the entire
family.
RCI Gold Crown Award
RCI Gold Crown Award recognizes resorts that have surpassed standards of excellence
in Resort Quality and Hospitality. This evaluation is based on the RCI member
comment card ratings and an independent assessment of resort facilities, amenities and
service. Only a small percentage of RCI affiliated resorts worldwide achieve this
distinction. Club Mahindra resorts at Goa, Coorg, Munnar, Manali, Binsar
Kumbhalgarh, Dharamshala, Thekkady and Naukuchiatal have received the RCI Gold
Crown award. The resorts at Goa and Munnar have also received the RCI Ten Year
award for consistently receiving the Gold Crown every year for ten years. Coorg
achieved the Gold Crown award in its very first year of operation, 2005.
National Network
Mahindra Holidays has established a nationwide reach with a network of 17 offices
across the country and in the Middle East. The network is serviced by a team of over
300 marketing and support executives who are specifically trained on service standards
that Mahindra Holidays is benchmarking in the industry. The accessibility to consumers
has been increased significantly by Mahindra Holidays opening up new channels in the
form of Direct Sales Associates across the country.
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Club Mahindra has been declared a Consumer Validated Superbrand by the Brand
Council of India. Last year, the Brand Council declared Mahindra Holidays a
Business Superbrand.
ACTIVITIES CARRIED OUT BY MHRIL ARE AS UNDER
(ENVIRONMENT) MHRIL, Munnar Constructed bus
shelter at Chinnakanal, Munnar. This bus shelter helps to
provide shelter to the commuters, especially during heavy
rains and hot summers. This was inaugurated and
dedicated to the villagers by our MD, Mr.Ramesh Ramanathan in a function held
on 2nd May 2009. Mr. Albi, Panchayat President graced the occasion. Mr.
Ramanathan and Mr. Albi addressed the gathering on this occasion. Beneficiaries
– Local Villagers.
(HEALTH) MHRIL, Munnar Lab equipments
sponsored to the Primary Health Centre at Chinnakanal,
Munnar. This contribution has improved facilities in the
lab and has also led medical practitioners to provide
better treatment for out patients. The inauguration was done on 2nd May 2009 in
the hands our MD, Mr.Ramesh Ramanathan. Beneficiaries – Local Villagers.
(HEALTH) MHRIL, Corporate Office Distributed
crockery & indoor games (dining plates, steel plates, soup
bowls, coffee cups, saucers and paper games) to Sevalaya
32
– A Home for Old Aged and Destitute Children, Chennai. This was a little
contribution from our end for 100% pass results from class 10th students of
Selvaya. This event took place on 4th June 2009. Beneficiaries – Inmates of
Sevalaya.
(HEALTH) MHRIL, Corporate Office Blood Donation
Camp was conducted at Corporate Office (CO) in
association with Jeevan Blood Bank, Chennai. 52
Employees donated blood during this camp. This event
took place on 7th May 2009. Beneficiaries – General Public through Jeevan
Blood Bank (52 units of blood).
(EDUCATION) MHRIL, Coorg Awareness session on
―Global Warming‖ was conducted for the students of
class IX and X of Kodagu Vidyalaya. Global Warming
issues were showcased by screening Al Gore‘s Movie,
―An Inconvenient Truth‖. The impact of the movie was such that both students
and children stated that they would contribute to the environment in possible
ways and means. This event took place on 26th Jun 2009. Beneficiaries –
Students and teachers of class IX and X (100 students and 7 teachers).
33
(ENVIRONMENT) MHRIL, Ashtamudi Donated
paper bag making machine to KUDUMBASHREE, a self
help group of ladies. This is in continuation towards
environment drive Say “No to plastics”. The first phase
in this project was making paper bags using old & used news papers (supplied by
us) and sellin the same back at nominal rates. In the second phase more125
Kudumbasree‘s units will involve in making and supplying paper bags to the
local shops and house holds. This event took place on 03rd July 2009.
Beneficiaries – Employment to self help groups and community.
(EDUCATION) MHRIL, Corporate Office Distributed
11,750 English-English-Tamil Dictionary to students of
27 corporation schools across Chennai. This initiative was
taken to help the school children to improve their
vocabulary and communication skills. This even took place on 22nd July 2009 at
Corporation Boys Higher Secondary School, Nungambakkam. The Chief Guest
of this event was District Education Officer (DEO) who gave a speech stressing
on the importance of knowing English words and able to speak fluently.
Beneficiaries – 11,750 government school children.
(ENVIRONMENT) MHRIL, Coorg An impactful
experience for both the employees(MHRIL) as well as
guests staying at the resort MHRIL by being a part of
34
road cleaning exercise conducted by the Esops Team Coorg. The cleaning was
done for the road adjacent to the resort. Both Employees and the guests actively
participated in this initiative. Seeing the enthusiasm local public also joined us in
this initiative. Beneficiaries – Local Public.
(HEALTH) MHRIL, Corporate Office Awareness talk
on preventive cardiac care was conducted by Dr. Rakesh
Gopal, Consultant Cardiologist from Apollo Hospitals,
Chennai on 6th August 2009. Dr.Gopal spoke on the ill-
effects of neglecting such problems. The session was interactive and went for
about 2 hours. Beneficiaries – CO Employees & Associates.
(HEALTH) MHRIL, Pondicherry Donated water
tanker (Capacity - 6000 Lts) to Bahour Commune
Panchayat which is near to the resort. The water tanker
will help smooth supply of water from one location to
another. The event took place on 22nd Jun 2009 which was graced by the
presence of 13 councillors, 6 commune Panchayat staffs and commissioner.
Beneficiaries – Local Villagers.
(ENVIRONMENT) MHRIL, Corporate Office
Distribution of Neem tree seeds to the employees of
corporate office on Independence Day. The purpose of
35
this initiative was to create awareness on the importance of planting tree. About
500 Neem tree seeds packets were collected by the employees. Beneficiaries –
Employees and Associates.
(EDUCATION) MHRIL, Coorg Drawing competition
was conducted at four various government schools for
students on 12th Aug 2009. MHRIL not only organized
this activity but also provided students with drawing
materials. Two themes were selected, (1) Environment and Conservation of
saving environment and (2) importance of saving nature. These two themes were
well understood by the school children and the same was beautifully portrayed in
their drawing. School children enjoyed being a part of this competition with a
message being conveyed to them towards sustaining our environment.
Beneficiaries – Students.
(ENVIRONMENT) MHRIL, Thekkady Iron Grill
Net was sponsored to the local villagers in order to
cover the well. The absence of the net has led
contamination of well water which was used by
majority of the villagers. This net will help them avoid contamination of well
water. This was dedicated to villagers as an Independence Day gift, in presence
of Panchayat President and other local authorities. The event took place on 18th
Aug 2009. The function was attended by Panchayat President, Vice President,
36
Ward member, Block Panchayat Member etc. Local Panchayat officials extended
all support for the activity. Beneficiaries – Local Villagers.
(EDUCATION) MHRIL, Binsar A desktop
computer, computer table and a UPS were sponsored
to Sri Ram School, Binsar. These have helped the
schools to pave way for computer-aided learning.
These are utilized for both academic and official use at the schools. The hand
over session took place on 22nd Aug 20009 by Mr. Pradeep Tamta (Member of
Parliament) and Mr. Rajender Barakoti (Member of Zila Panchyat Almora) to the
head master of the school. Beneficiaries – School children and school
management.
(HEALTH) MHRIL, Delhi Blood Donation Camp
was conducted at Delhi office in association with
Lion Blood Bank. The camp was organized in a well
structured manner. Donors included employees from
both MHRIL and M&M. This event took place on 22nd Aug 2009. Beneficiaries
– Public through Lion Blood Bank (45 units of blood).
(EDUCATION) MHRIL, Coorg Awareness session on
―Global Warming‖ was conducted for the students of St.
Joseph Convent School, Madikeri. Global Warming
37
issues were showcased by screening Al Gore‘s Movie, ―An Inconvenient Truth‖.
The impact of the movie was such that both students and children stated that they
would contribute to the environment in possible ways and means. This event took
place on 31st Aug 2009. Beneficiaries – Students and teachers of class IX and X
(600 students).
(EDUCATION) MHRIL, Binsar A desktop
computer, computer table, UPS and old durries were
sponsored to Anoop Shishu School, Binsar. These
have helped the schools to pave way for computer-
aided learning. These are utilized for both academic and official use at the
schools. The hand over session took place on 22nd Sep 2009 by Mrs. Basanti
Devi (Village Pradhan) to the head master of the school. Beneficiaries – School
children and management.
(HEALTH) MHRIL, Corporate Office Sponsored
Defibrillator to the Institute of Child Health & Govt
Hospital children (ICH), Egmore, Chennai. The ICH
is a premier, multi specialty pediatric referral hospital
(largest of its kind in Asia) of the Government of Tamil Nadu that caters to the
health needs of children of Tamil Nadu and neighboring states. This unit will
serve to stabilize critical / emergency cases. The handover session took place at
corporate office in the presence of Dr.Sardha Suresh– Director (ICH, Egmore)
38
and Dr Sailakshmi – Ekam – oneness. This event took place on 12th Oct 2009.
Beneficiaries – Under Privileged Children.
(HEALTH) MHRIL, Ashtamudi Medical Camp
was conducted at Guhandapuram Higher secondary
School, Chavara South, Ashtamudi. Class rooms of
this school were used for the checkup.District
Medical Officers bought the medicines. Team of doctors comprising of General
Physician, gynaecologist, paediatrician, eye specialist, cancer specialist were
present. A team from district blood bank was also available for blood donation
drive. 28 volunteers donated blood. This event took place on 26th Oct 2009.
Beneficiaries – General Public through District Blood Bank (28 units of blood).
(HEALTH) MHRIL, Ashtamudi Distribution of
sweaters and stationary to the students of
Government Primary School, Hodal sidhpur. This
activity was inaugurated by Local Panchaya Pradhan
on 28th Oct 2009. Students belong to below poverty line families thereby
provision of sweaters will keep then warm during peak winter season. The same
has also been covered in the local news paper – ―Jaagran City‖. Beneficiaries –
School children.
39
(HEALTH) MHRIL, Manali Blood Donation
Camp was conducted at Community Health Centre,
Manali. This came was inaugurated in the presence
of local MLA. 54 of them came forward to donate
blood during this camp. This event took place on 8th Oct 2009. Beneficiaries –
General Public (54 units of blood).
(HEALTH) MHRIL, Cochin Donated Cots,
Mattresses & Cupboards to Grama Seva Samithi - a
charitable trust started in 1980.It is dedicated to the
welfare of the needy and deprived. This event took
place on 9th Nov 2009. There was media coverage on this activity. The event
turned out to be a very emotional one for both the volunteers as well as the
inmates who were very happy to be getting so much attention.Beneficiaries –
Inmates of Bhakta Soordas Swasraya Kendram-Madhavam, Sreemoolanagram,
Aluva.
(EDUCATION) MHRIL, Corporate Entertainment
program was conducted for the special children
(physically challenged) on the occasion of World
Disability day on 14th November 2009. Dignitaries
from the field of medicine and arts were present. Mr Gopal and his son Jr Gopal
performed Magic show which was thoroughly enjoyed by the children. Team of 5
40
school children performed a music show. Sweets were distributed to the children.
Beneficiaries – Special children (Physically challenged) across Chennai
(HEALTH) MHRIL, Corporate Sponsored Solar
Water Heating system to the inmates of ANANDAM
– A home for senior citizens on 14th November
2009. Wheel chair was also donated to the inmate. This wheel chair was
sponsored by one of our employee, Sumana Sriprasad. Lunch for the day was
sponsored by us and volunteers also had lunch with the inmates. The handover
ceremony took place at the old age home. Beneficiaries – inmates of
ANANDAM.
(HEALTH) MHRIL, Shimla Blood Donation Camp
was conducted at Community Health Centre,
Mashobra, Shimla. Doctors from Kamala Nehru
Hospital for Mother and Child were invited for this
camp. The donor was provided with refreshments and lunch. This event took
place on 2nd Dec 2009. Beneficiaries – General Public (40 units of blood).
(HEALTH) MHRIL, Coorg Donated a tricycle to
Mr Nanaiah, a physically challenged person in the
presence of – Brig. Ravi Mehta, a Retired Army
Officer from Delhi. The donation was made on 1st
41
Dec 2009. Nanaiah has immensely benefited by this gesture. Earlier we used to
see him crawling on the road. Now he is more confident and is seen cycling to do
his own chores. He has also become more independent which earlier he was not.
This is the outcome seen just in a matter of a month a better evaluation could be
done given some more time.
(HEALTH) MHRIL, Naukuchiatal Blood
Donation Camp was conducted at Club Mahindra
Dancing Waters, Naukuchiatal. Doctors from
government hospital, Haldwani were invited for this
camp. Senior pathologist Dr.Bhardwaj addressed the employees and encouraged
employees for the same. This event took place on 12th Dec 2009 and the same
was published in local newspaper named ―Amar Ujaala‖ dated 13th Dec 2009.
Beneficiaries – General Public (8 Units of Blood).
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CHAPTER-II
LITERATURE REVIEW
43
LITERATURE REVIEW
Global travel increased by 6% in 2007 compared with 2006, crossing tourism
forecasts for the fourth year in succession. Among the various regions, the Middle
East registered the highest growth in arrival of international tourists with 46
million tourists compared with 41 million in 2006, a growth of 12.2%.The opening
up of the aviation industry in India has resulted in exciting opportunities for the
hotel industry.
The share of Travel & Tourism industry to the global GDP was 6.48% in
the year 2007 with value of US$ 3,493.19 billion and industry demand
contributed to 13.21% of global GDP in 2007.
Middle East was the fastest-growing region in terms of arrivals of
international tourists during 2007.
According to the report by World Travel and Tourism Council, India
currently ranks 18th in business travel and will be among the top 5 nations
by the end of 2010.
ASSOCHAM has projected that Medical Tourism is likely to become the
leading foreign exchange earner for India.
India is now emerging as one of the hot destinations for medical tourism
after Singapore, Thailand, Hong Kong, Malaysia, Philippines, and
Columbia.
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A touch of tenderness, a helping hand, a welcoming visage... the Indian
hospitality sector is certainly the most apt replication of the belief ‗ATITHI
DEVO BHAVA'.
Good quality products and services at affordable prices should be the USP
of any successful venture - and hotels in the country boast of exactly this.
According to the world travel and tourism council, the growth in the
hospitality industry is pegged at 15% every year, and with 2, 00,000 rooms
(both luxury and budget) needed in the country, the segment is poised for a
stupendous growth.
BRAND POSITIONING PROCESS
Effective Brand Positioning is contingent upon identifying and communicating a
brand's uniqueness, differentiation and verifiable value. It is important to note that
"me too" brand positioning contradicts the notion of differentiation and should be
avoided at all costs.
Generally, the brand positioning process involves:
1. Identifying the business's direct competition.
2. Understanding how each competitor is positioning their business today.
3. Documenting the provider's own positioning as it exists today.
4. Comparing the company's positioning to its competitors' to identify viable
areas for differentiation
5. Developing a distinctive, differentiating and value-based brand positioning
statement, key messages and customer value propositions.
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PRODUCT POSITIONING PROCESS
Generally, the product positioning process involves:
1. Defining the market in which the product or brand will compete
2. Identifying the attributes that define the product 'space'
3. Collecting information from a sample of customers about their perceptions
of each product on the relevant attributes
4. Determine each product's share of mind
5. Determine each product's current location in the product space
6. Determine the target market's preferred combination of attributes
7. Examine the fit between:
o The position of your product
o The position of the ideal vector
8. Interest and started a conversation, you'll know you're on the right track.
POSITIONING CONCEPTS
More generally, there are three types of positioning concepts:
1. Functional positions
o Solve problems
o Provide benefits to customers
o Get favorable perception by investors and lenders
2. Symbolic positions
o Self-image enhancement
o Ego identification
o Belongingness and social meaningfulness
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o Affective fulfillment
3. Experiential positions
o Provide sensory stimulation
o Provide cognitive stimulation
REPOSITIONING A COMPANY
In volatile markets, it can be necessary - even urgent - to reposition an entire
company, rather than just a product line or brand. When Goldman Sachs and
Morgan Stanley suddenly shifted from investment to commercial banks, for
example, the expectations of investors, employees, clients and regulators all
needed to shift, and each company needed to influence how these perceptions
changed. Doing so involves repositioning the entire firm.
Some customers expect a lot from salespeople, some expect very little, and some
don't know what to expect. Frequently, customers expect salespeople merely to be
suppliers of products rather than resources with solutions to common business
problems - solutions that can save time, make them money, increase productivity,
and retain customers.
VALUE FOCUSED
Customer expectations may also be based on a salesperson's overall value as a
supplier and partner. For example, printing salespeople supplying design and
formatting expertise at no charge may save clients hundreds of dollars per order.
While charging more for printing services, they provide savings on design and
formatting that far offset the higher price. In addition, the salespeople help
customers with their corporate image, thus adding more value.
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A building supply company regularly holds a customer business seminar to
identify business issues and discuss methods for meeting objectives. Attendees
report that this business forum provides them with an opportunity to share ideas
with peers they wouldn't normally encounter. The building supply firm actually
documents a sales increase with these accounts immediately following the
seminars.
BRAND AWARENESS
Brand awareness refers to customers' ability to recall and recognize the brand
under different conditions and link to the brand name, logo, jingles and so on to
certain associations in memory. It helps the customers to understand to which
product or service category the particular brand belongs and what products and
services are sold under the brand name. It also ensures that customers know which
of their needs are satisfied by the brand through its products (Keller). Brand
awareness is of critical importance since customers will not consider your brand if
they are not aware of it.
BRAND PROMISE
Brand promise is what a particular brand stands for. It has its roots from the
identity that it gains over a period of time. Usually, brand promise is an attribute
common to ' Parent ' brands. Herein, the brand may broadly stand for Quality,
Performance, Trust, or False promises. However, the extensions, or the brands
under the parent brand umbrella, may stand individually for a particular trait
which it has delivered over the years, for example, 'the best sparkling teeth', or 'the
trusted bank to bank with for centuries', et al.
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GLOBAL BRAND
A global brand is one which is perceived to reflect the same set of values around
the world. Global brands transcend their origins and create strong enduring
relationships with consumers across countries and cultures. They are brands sold
in international markets. Examples of global brands include Facebook, Apple,
Coca-Cola, McDonald's, Mastercard, Gap, Sony and Nike. These brands are used
to sell the same product across multiple markets and could be considered
successful to the extent that the associated products are easily recognizable by the
diverse set of consumers.
BENEFITS OF GLOBAL BRANDING
In addition to taking advantage of the outstanding growth opportunities, the
following drives the increasing interest in taking brands global:
Economies of scale (production and distribution)
Lower marketing costs
Laying the groundwork for future extensions worldwide
Maintaining consistent brand imagery
Quicker identification and integration of innovations.
Preempting international competitors from entering domestic markets or
locking you out of other geographic markets
Increasing international media reach is an enabler
Increases in international business and tourism are also enablers
GLOBAL BRAND VARIABLES
The following elements may differ from country to country:
Corporate slogan
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Products and services
Product names
Product features
Positioning
Marketing mixes
These differences will depend upon:
Language differences
Different styles of communication
Other cultural differences
Differences in category and brand development.
Different consumption patterns.
Different competitive sets and marketplace conditions.
Different legal and regulatory environments.
Different national approaches to marketing.
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BRAND PROMOTIONAL STRATEGIES
(i) Memorable Brand Name and Logo
The vast majority of brand names are short and memorable names, which are easy
to remember. They can often be shortened versions of the full company name, or
something completely new aimed at selling a particular product or service.
(ii) Image of Size
A strong brand will project an image of a large and established business to your
potential customers. People usually associate branding with larger businesses that
have the money to spend on advertising and promotion. If you can create effective
branding, then it can make your business appear to be much bigger than it really
is.
(ii) Professional Looking Image
The overall image of your business is a crucial part of creating strong branding. As
branding creates the impression of a larger business, your image should reflect that
of an established company. All business stationary needs to carry your businesses
brand name or logo. There is no point creating a brand if you do not use it,
although this does not mean you need to make it excessively large, sometimes
subtlety works just as well. Creating a brand is not just about the name and logo;
can someone look at your products/brochure/store and know that it is for your
business without seeing a name?
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(iii) Exposure
Even the best designed branding will be of no benefit if people are not exposed to
it. There are four main ways in which people become exposed to and remember a
brand:
Advertising
Advertising in magazines, newspapers, trade journals, or even on the radio or
television will expose your brand to a large number of people in a short space of
time. There is no better way of exposing your brand, but substantial advertising is
very expensive, particularly in the long term. Advertising planning should always
take into account the type of business you are in, and who you are aiming to sell or
expose your brand to.
PUBLIC RELATIONS (PR)
Public Relations exposure can inform a wide range of people about your brand
through trustworthy sources such as newspapers. A news story that references
your brand is given to the media outlets, which then decide whether or not to run
the story. PR is not as expensive as advertising, but results can vary considerably
depending on the type of business you run, the availability of stories, and even
what is going on in the news that week. If you choose an external company, you
must always be sure of their ability and experience, otherwise you are effectively
throwing money away. If you choose to carry out PR internally, it costs next to
nothing, but the results will often be poor without some training and knowledge.
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Word Of Mouth
Highly satisfied customers will generally tell other people about your business,
this can be used to help spread your brand. Be careful however, as unsatisfied
customers will usually tell more people about their experiences than satisfied
customers will. Word of mouth exposure is free, and helps to lodge your brand
name and image in your potential customers minds. Advertising and promotions
can also encourage word of mouth; many businesses run competitions or ‗teaser‘
advertising that often makes people talk about the advert. Discounts given when
an existing customer introduces a friend are another common way of increasing
word of mouth exposure.
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PORTER’S FIVE FORCES MODEL
Porter‘s model is based on the insight that a corporate strategy should meet the
opportunities and threats in the organizations external environment. Especially,
competitive strategy should base on and understanding of industry structures and
the way they change. Porter has identified five competitive forces that shape every
industry and every market. These forces determine the intensity of competition
and hence the profitability and attractiveness of an industry. The objective of
corporate strategy should be to modify these competitive forces in a way that
improves the position of the organization. Porter‘s model supports analysis of the
driving forces in an industry. Based on the information derived from the Five
Forces Analysis, management can decide how to influence or to exploit particular
characteristics of their industry.
1. BARGAINING POWER OF SUPPLIERS
The term 'suppliers' comprises all sources for inputs that are needed in
order to provide goods or services.
The high class hotels are operating by few hotel chains like-TAJ,
EIH, ITC&THE LEELA PALACE so they have a control over the
industry.
There are no substitutes for spas and five star hotels.
The hotels customers are fragmented, so they have to reduce their
bargaining power to attract the customers.
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The Taj, ITC& Oberoi are having various rates and tariffs because
they are having their own brand image.
The hotel chains are operating different services like Spas, Boatels,
Resorts, City Centers, Heritage HOTELS, etc.'
2. BARGAINING POWER OF CUSTOMERS
Similarly, the bargaining power of customers determines how much
customers can impose pressure on margins and volumes.
The hotel industry is one of the most invested in its fixed assets. So they
are trying to recover their amount quickly.
The suppliers are providing better information about them to attract the
customers. Here the buyers are highly informed.
If the hotel price changes are moderate, the Customers have low margins
and are price sensitive.
Some unseasoned timings the hotels are offering discounts and incentives
to reduce the bargaining power of buyers.
3. THREAT OF NEW ENTRANTS
The competition in an industry will be the higher; the easier it is for other
companies to enter this industry. In such a situation, new entrants could
change major determinants of the market environment (e.g. market shares,
prices, customer loyalty) at any time. There is always a latent pressure for
reaction and adjustment for existing players in this industry.
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The foreign hotel chains are tied up with Indian hotels to reduce the initial
cost and using the latter‘s brand name.
Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects
the new entrants.
Access to raw materials and Distribution channels are controlled by
Existing players like TAJ, ITC, and LEELA PALACE.
The cost of land in India is high at 50% of total project cost as against 15%
abroad. This acts as a major deterrent to the Indian hotel industry.
In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by
over 30%. Effective tax in the South East Asian countries works out to only
4-5%.
4. THREAT OF SUBSTITUTES
A threat from substitutes exists if there are alternative products with lower
prices of better performance parameters for the same purpose. They could
potentially attract a significant proportion of market volume and hence
reduce the potential sales volume for existing players. This category also
relates to complementary products.
Brand loyalty of customers (TAJ, ITC, LEELA PALACE, etc,) is
dominating the substitutes.
The hotel relationship with customer and costs also the reasons to
switching to substitutes.
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The price variation of same class hotel services from various brands is one
of the reasons to choose a substitute.
The present demand and supply of hotel rooms is one of the reasons to
choose a substitute.
More fixed cost and switching costs affects the business.
5. COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS
This force describes the intensity of competition between existing players
(companies) in an industry. High competitive pressure results in pressure
on prices, margins, and hence, on profitability for every single company in
the industry.
The top competitors in hotel industry are having the same services like five
star, spas, boatels and motels, heritage hotels and palaces.
The healthy competition among the all players is helping to increase the
industry growth.
Intense in metro cities, slowly picking up in secondary cities.
MARKETING
We can distinguish between a social and a managerial definition for marketing.
According to a social definition, marketing is a societal process by which
individuals and groups obtain what they need and want through creating, offering,
and exchanging products and services of value freely with others. As a managerial
definition, marketing has often been described as ―the art of selling products.‖ But
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Peter Drucker, a leading management theorist, says that ―the aim of marketing is
to make selling superfluous. The aim of marketing is to know and understand the
customer so well that the product or service fits him and sells itself. Ideally,
marketing should result in a customer who is ready to buy.‖
Marketing management is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.
Coping with exchange processes-part of this definition is calls for a considerable
amount of work and skill. We see marketing management as the art and science of
applying core marketing concepts to choose target markets and get, keep, and
grow customers through creating, delivering, and communicating superior
customer value.
Core Marketing Concepts
Marketing can be further understood by defining the core concepts applied by
marketing managers.
Target Markets and Segmentation
A marketer can rarely satisfy everyone in a market. Not everyone likes the same
soft drink, automobile, college, and movie. Therefore, marketers start with market
segmentation. They identify and profile distinct groups of buyers who might prefer
or require varying products and marketing mixes. Market segments can be
identified by examining demographic, psychographic, and behavioural differences
among buyers. The firm then decides which segments present the greatest
opportunity-those needs the firm can meet in a superior fashion. For each chosen
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target market, the firm develops a market offering. The offering is positioned in
the minds of the target buyers as delivering some central benefit(s). Traditionally,
a ―market‖ was a physical place where buyers and sellers gathered to exchange
goods. Now marketers view the sellers as the industry and the buyers as the
market. The sellers send goods and services and communications to the market; in
return they receive money and information.
MARKETING MIX
The marketing mix is probably the most famous marketing term. Its elements are
the basic, tactical components of a marketing plan. Also known as the Four P's, the
marketing mix elements are price, place, product, and promotion.
PRICE
There are many ways to price a product.
PLACE
Another element of Neil H.Borden's Marketing Mix is Place. Place is also known
as channel, distribution, or intermediary. It is the mechanism through which
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goods and/or services are moved from the manufacturer/ service provider to the
user or consumer.
PRODUCT
For many a product is simply the tangible, physical entity that they may be
buying or selling. You buy a new car and that's the product - simple! Or
maybe not. When you buy a room in a hotel, is the product more complex
than you first thought?
The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it
shoots out leaves and puts down roots as it becomes an adult (maturity);
after a long period as an adult the plant begins to shrink and die out
(decline).
The Customer Life Cycle (CLC) has obvious similarities with the Product
Life Cycle (PLC). However, CLC focuses upon the creation of and delivery
of lifetime value to the customer i.e. looks at the products or services that
customers NEED throughout their lives.
PROMOTION
Another one of the 4P's is promotion. This includes all of the tools available to
the marketer for 'marketing communication'. As with Neil H.Borden's marketing
mix, marketing communications has its own 'promotions mix.' Think of it like a
cake mix, the basic ingredients are always the same. However if you vary the
amounts of one of the ingredients, the final outcome is different.
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PHYSICAL EVIDENCE
Physical Evidence is the material part of a service. Strictly speaking there are no
physical attributes to a service, so a consumer tends to rely on material cues.
PEOPLE
People are the most important element of any service or experience. Services tend
to be produced and consumed at the same moment, and aspects of the customer
experience are altered to meet the 'individual needs' of the person consuming it.
PROCESS
Process is another element of the extended marketing mix, or 7P's.There are a
number of perceptions of the concept of process within the business and marketing
literature. Some see processes as a means to achieve an outcome, for example - to
achieve a 30% market share a company implements a marketing planning process.
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HOSPITALITY MARKETING 2010
Marketing success in decade 2010 will depend not only on the brand and its
promises but also on the customer experience and his/ her influence on others. The
article outlines strategies for marketers to influence the purchase decision of
customer.
As the year 2010 progresses, the debate on Marketing Spend vs. Incremental
Revenue - an age old one - gains prominence given the state of the economic flux
wherein each dollar spent is analyzed, re-negotiated and then minimized.
Marketing Strategies and related spends in 2010 are now even under more scrutiny
and justifiably so!
Given that 2010 is the year of slashed budgets, overwhelming shortage of skilled
human resources, and a renewed focus on increasing ARR and yield, the question
for marketing resources of Indian Hospitality is how to continue to build their
brand and market their differentiated products successfully as compared to that in
the last decade? The answer may well be in an analysis of the trends and changing
perceptions of customers in the last decade vs. that of the upcoming one.
Let's start with the big 'B' - Branding. In this past decade, Brand was foremost in
the minds of the customers when making a purchase decision. Previously the
Brand was created internally by the custodians of the brand - the internal
stakeholders - and was a rigid entity that was conceptualized to reflect what they,
the custodians wanted their product to reflect. For the most part, branding was a
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one-way stream of communication that worked for the customers of the last
decade. This resulted in a decade of strong brands that effectively harnessed the
power of branding. Today, Brand 2010 needs to be flexible within means; it needs
to be based on the needs and wants of the customer of the coming decade - the
external stakeholders - who will evolve to be the real custodians of the Brand. In
the past decade, Brands were adept at communicating high flying Brand Promises
but relatively inept at delivering them. Brand Promises in 2010 will have to be
realistic, experience led, sustainable and more easily comprehended by the
customer. It will be the actual delivery of these Brand Promises that will influence
the purchase decision of 2010.
Customer 2010 will most definitely need to have considerable power in the
marketing process of the coming decade. From brand strategy, brand promises,
delivery of brand experience to the purchase decision itself, it will be the customer
experience and his/ her influence on others that will ensure success of a marketing
initiative. How then would marketers in the coming decade be successful with
such limited control? The Marketer 2010 needs to ensure that customer brand
experience delivers on each marketing communication it generates. Once ensured,
this marketing communication needs to be disseminated as sequential
communication across various media. This will not only strengthen brand recall
but will also provide the customer with the confidence to make the purchase
decision. Marketing 2010, therefore, will not be a one shot win all initiative. It will
be a series of experience-led communications using a mix of marketing media that
will encourage the purchase decision. The strong foundation of the marketing
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communication itself will take result in word of mouth/ or should I say word of
Web 2.0 marketing to ensure marketing success!
Hospitality marketing in this decade will need to be many steps ahead. Moreover,
consistent delivery of a superior and differentiated product experience that offers a
greater perceived value will result in the acquisition and retention of customers of
the coming decade. The need to consistently deliver on Brand promises will be
further underlined by the ability of customers to reveal instantly online.
It is intrinsic for successful marketers of the coming decade to:
Deliver consistently on brand promises and customer experiences
Listen and interact regularly with customers to create, enhance, and
maintain customer loyalty
Create a unique selling proposition for services that cater to customer
preferences to build and retain brand loyalty
To create marketing communications that are based on product fact points
and delivery of promised brand experiences
Use sequential communication across a mix of marketing media
Influence possible customers through existing customers. Word of mouth
marketing, which has been redefined by the onset of the new wave of social
media and Web 2.0 initiatives, should be harnessed to the maximum.
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PROMOTIONAL STRATEGIES
8Ps OF SERVICES MARKETING:
Product elements - The core and periphery service elements at the centre of the
company's marketing strategy;
Place and Time - Delivering product elements to customers can be done
physically and/or electronically, depending upon the service. Speed and
convenience are essential to the customer and are important value-adds;
Price and Other User Outlays - Pricing is only a part of what customers may
part with when purchasing a service; one must also consider time and
convenience;
Promotion and Education - Speaks for itself, but the marketer must make sure
communications not only provide information, but also persuade the customer of
the service's relevance to the customer's particular 'problem';
Process - The means by which the firm delivers product elements;
Physical Environment - The appearance of the place where the services are
delivered may have a significant impact upon whether the service was satisfactory;
People - front-line staff will have a direct impact on perceptions;
Productivity and Quality - Improving productivity is a requisite in cost
management; but quality, as defined by the customer, is essential for a service to
differentiate itself from other providers.
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THEORY OF THE GAPS MODEL IN SERVICE MARKETING
The gaps model of service quality was first developed by a group of authors,
Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in
1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service
such as executive interviews and focus groups in four different service businesses
the authors proposed a conceptual model of service quality indicating that
consumers‘ perception toward a service quality depends on the four gaps existing
in organization – consumer environments. They further developed in-depth
measurement scales for service quality in a later year (Parasuraman, Zeithaml,
Berry, 1988).
Theory of the Gaps Model
Perceived service quality can be defined as, according to the model, the difference
between consumers‘ expectation and perceptions which eventually depends on the
size and the direction of the four gaps concerning the delivery of service quality on
the company‘s side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985).
Customer Gap = f (Gap 1, Gap 2, Gap 3, Gap 4)
The magnitude and the direction of each gap will affect the service quality. For
instance, Gap 3 will be favourable if the delivery of a service exceeds the
standards of service required by the organization, and it will be unfavourable when
the specifications of the service delivered are not met
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: The Integrated Gaps Model of Service Quality
The key points for each gap can be summarized as follows:
Customer gap: The difference between customer expectations and
perceptions – the service quality gap.
Gap 1: The difference between what customers expected and
what management perceived about the expectation of
customers.
Gap 2: The difference between management‘s perceptions of
customer expectations and the translation of
those perceptions into service quality specifications
and designs.
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Gap 3: The difference between specifications or standards of
service quality and the actual service delivered to
customers.
Gap 4: The difference between the service delivered to
customers and the promise of the firm to customers
about its service quality
APPLICATIONS OF THE GAPS MODEL
First of all the model clearly determines the two different types of gaps in service
marketing, namely the customer gap and the provider gaps. The latter is
considered as internal gaps within a service firm. This model really views the
services as a structured, integrated model which connects external customers to
internal services between the different functions in a service organization.
Important applications of the model are as follows:
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THE 10 DETERMINANTS OF SERVICE QUALITY
1. The gaps model of service quality gives insights and propositions regarding
customers‘ perceptions of service quality.
2. Customers always use 10 dimensions to form the expectation and perceptions
of service quality (Fig. 2).
3. The model helps predict, generate and identify key factors that cause the gap
to be unfavourable to the service firm in meeting customer expectations.
The model provides a conceptual framework for academic and business
researchers to study the service quality in marketing.
KEY FACTORS LEADING TO THE CUSTOMER GAP
• Inadequate marketing research orientation Insufficient marketing
research
Research not focused on service quality inadequate use of market research
• Lack of upward communication - Lack of interaction between
management and customers insufficient communication between contact
employees and managers
Too many layers between contact personnel and top management
• Insufficient relationship focus - Lack of market segmentation focus on
transactions rather than relationships focus on new customers rather than
relationship customers
• Inadequate service recovery
Lack of encouragement to listen to customer complaints
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Failure to make amends when things go wrong
No appropriate recovery mechanisms in place for service failures
Key Factors Leading to Provider Gap 2
• Poor Service Design
Unsystematic new service development process
Vague, undefined service designs
Failure to connect service design to service positioning
• Absence of customer-driven standards
Lack of customer-driven service standards
Absence of process management to focus on customer requirements
Absence of formal process for setting service quality goals
• Inappropriate physical evidence and service scape
Failure to develop tangibles in line with customer expectations
Service scape design that does not meet customer and employee needs
Inadequate maintenance and updating of the service scape
• Key Factors Leading to Provider Gap 3
• Deficiencies in human resource policies
Ineffective recruitment
Role ambiguity and role conflict
Poor employee-technology job fit
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Inappropriate evaluation and compensation systems
Lack of empowerment, perceived control, and teamwork
• Customers who do not fulfill roles
Customers who lack knowledge of their roles and responsibilities
Customers who negatively impact each other
• Problems with service intermediaries
Channel conflict over objectives and performance
Difficulty controlling quality and consistency
Tension between empowerment and control
• Failure to match supply and demand
Failure to smooth peaks and valleys of demand
Inappropriate customer mix
Overreliance on price to smooth demand
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KEY FACTORS LEADING TO PROVIDER GAP 4
• Lack of integrated services marketing communications
Tendency to view each external communication as independent
Not including interactive marketing in communications plan
Absence of strong internal marketing program
• Ineffective management of customer expectations
Absence of customer expectation management through all forms of
communication
Lack of adequate education for customers
• Overpromising
Overpromising in advertising
Overpromising in personal selling
Overpromising through physical evidence cues
• Inadequate horizontal communications
Insufficient communication between sales and operations
Insufficient communication between advertising and operations
Differences in policies and procedures across branches or unit
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SALES PROMOTION POLICIES ADOPTED BY
CLUB MAHINDRA
Sales promotion can be classified based on the primary target audience to
whom the promotion is directed. These include:
Consumer Market Directed - Possibly the most well-known methods of
sales promotion are those intended to appeal to the final consumer.
Consumers are exposed to sales promotions nearly everyday, and as
discussed later, many buyers are conditioned to look for sales promotions
prior to making purchase decisions.
Trade Market Directed – Marketers use sales promotions to target all
customers including partners within their channel of distribution. Trade
promotions are initially used to entice channel members to carry a
marketer‘s products and, once products are stocked, marketers utilize
promotions to strengthen the channel relationship.
Business-to-Business Market Directed – A small, but important, sub-set
of sales promotions are targeted to the business-to-business market.
TACTICS:
Tactic 1: Publicity stunts
Stunt is a word with negative connotations for restaurant owners, but I wanted to
use a word that conjured up images that are different than traditional press
relations efforts. Sending a standard press release about a new menu may result in
a small write-up. To cut through the clutter and generate extensive exposure, you
need a newsworthy angle. Something like a celebrity chef cook-off, really unique
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contest or other major event. Think beyond typical events like golf tournaments
and simple fundraisers. Challenge your staff or marketing firm to think what
you‘d have to do to make it into the Guinness Book of World Records. Challenge
them to think much bigger and come up with ideas that tie in to what your club
stands for but also have potential for national exposure. If you create events that
have only local appeal, you‘ll be limited with your media exposure potential and
may not even make the local paper. If you think much larger, you won‘t have to
worry about getting coverage. A well-constructed publicity stunt can be worth its
weight in gold in terms of positive exposure for your restaurant. And everybody
wants to be associated with a winner.
TACTIC 2:
PUBLIC RELATIONS - Public relations has been called advertising that you
don‘t have to pay for. If you have a successful public and media relations
program, you‘ll get increased exposure and prestige without spending a fortune.
For this to work; though, you‘ll need to create and publicize newsworthy stories.
Hiring a new chef isn‘t always enough to garner the kind of attention you deserve.
Create other angles that are unique and make your restaurant stand out. Also,
review your restaurant‘s marketing and advertising expenses over the last three
years. Then determine the percentage that was spent on traditional advertising
compared to public relations. Its worthwhile to spend 15-30 percent of your
budget on a solid public relations program.
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If that firm doesn‘t seem genuinely curious and interested in your restaurant and
what it has to offer, it‘ll have a hard time creating interest with the media.
Some higher-end restaurants are understandably concerned about publicity stunts
and other marketing activities that seem to fly in the face of the exclusivity of their
establishment. My answer to that is simple these tactics won‘t be appropriate for
everyone. That being said, if you are one of the restaurant owners that cringes at
the thought of creating buzz in the community at large, I urge you to think about
your position.
Everyone wants to be associated with a winner. For some of your regulars, the
whole reason they belong in the first place is because its exclusive and their being
a part of that is an extension of their self-brand and identity. Creating buzz won‘t
distract from that, it will reinforce it in many cases. They key is how the publicity
comes across. If done correctly, it supports your position in the market,
exclusivity and prestige.
TACTIC 3: BOUNCE BACKS
This is an underutilized tool that bounces guests from peak times to off-peak times
and can also work to encourage frequency in your food and beverage operations.
While simple in theory and execution, this tactic can produce far more in revenues
per dollar invested than traditional advertising. All you do is offer incentives at
the point of purchase on popular services to encourage the guest to try your
restaurant another time. For instance, if you are busy for lunch and need to drive
sales for dinner, offer bounce back certificates that can only be redeemed during
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dinner hours. Test different offers and delivery vehicles and track response rates
for each to hone in on what works best with your clientele.
TACTIC 4:
STOP DISCOUNTING - Discounting tells our customers and prospective
customers, We don‘t deserve full price, so we‘ll be happy to lower our rates to
make up for the difference.
Discounting the price would be to discount the 105 years spent building a brand.
Instead of discounting, consider no strings offers that do not rely on percentages.
Examples include value-added perks such as free valet parking, complimentary
services, merchandise, etc. And, in a related topic, never offer coupons, only offer
certificates. There is a big difference in perception.
TACTIC 5: BUSINESS SOCIALS
If we select the right group to partner with, we can leverage their resources to
promote your restaurant, and we can also target our core audience. Host socials
where the food is center stage. Arrange photo opportunities that include your
displays in the background and submit to local media. Partnering with a business
or charitable organization works on many levels and can help us stretch our
marketing budget while still delivering higher returns on investment than can be
achieved with traditional advertising.
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TACTIC 6: SAMPLING
Tasting is believing and if you would grade your food a B minus or above, you
need to get it in potential customers mouths. That‘s the best way to build
recognition and it is more effective and less expensive than advertising. Every
public event that draws your core audience is an opportunity to offer samples of
your product. Pick the best 2-3 items on your menu that can be easily transported
and get some solid representatives of your restaurant out to meet and greet at these
off-property functions
TACTIC 7: HOST FOOD EVENTS
Hosting food events such as the Taste of (insert your town) is a great way to
position your restaurant as a center of the food scene in your market. It allows you
to leverage the reputation, profile and credibility of all of the other participants,
and it can also help you share the expense of holding the event. Hosting an event
also provides your restaurant with the opportunity to recruit additional manpower
and resources for promoting the event and gives that added edge with garnering
local publicity.
TACTIC 8:
Promote this program through next newsletter and other internal marketing
vehicles to existing customer base. Pick Tuesdays (or slowest food day) and flip
for the food tab. Guests will have a 50 percent chance of getting their food bill
paid by the restaurant. This attracts our guests attention much more than a buy
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one get one free restaurant promotion. Guests are also more likely to have higher
check averages than normal because there is a chance they won‘t have to pay. It
creates a tremendous attention among your core guest base.
TACTIC 9: MENU BINGO –
This is a great tactic for encouraging frequency and getting members to try
different items on the menu. We simply create bingo cards that have different
menu items in boxes. Have the cards designed with five columns and five rows.
We can also promote other non-food items such as merchandise, cookbooks, and
gift certificates. Guests have an allotted period of time 60 days for example to
complete a connection just as they would with a bingo card. Once they try five
items in any direction, they receive a free gift basket or other incentives that are
roughly equal to one of the items purchased.
TACTIC 10:
BIRTHDAY PROGRAM - Research shows that 50 percent of all Indians eat out
on their birthday. This presents an opportunity for establishments with solid
birthday programs. So why don‘t restaurateurs do more to take advantage of this,
but it does offer a chance for us to swoop in and capture our increased share of the
market. A birthday program can be executed through new automated tools like
those that are available through e-mail marketing service providers. We simply
plug in the birthday and e-mail address of our members, and a secure and nicely
designed e-mail is sent to them at a time we determine in advance. The system
knows who and when to send the e-mail to and also tracks view rates for reporting
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that allows us to know how well your program is working. We can also have the e-
mail include a redemption code that will allow you to track what percentage of the
e-mails are bringing in guests and calculate a return on investment. Recent
research has shown that retention based e-mail marketing is 300 to 400 percent
higher than traditional vehicles such as direct mail and faxes. It‘s a great way to
communicate and manage our clubs birthday program.
Remember, differentiation and exciting tactics like the ones described above are
particularly potent for your food and beverage operations.
Smart marketing is best achieved through non-traditional techniques that are
executed inside your restaurant and among your existing customer base.
Opportunities abound if you look at your situation through the right lens. Use the
ideas above to spark your own thinking of similar underutilized programs in your
own operation and reap the rewards as other successful restaurants are around the
country.
Although sales promotion is a competent strategy for producing quick, short-term,
positive results, it is not a cure for a bad product, poor advertising, or an inferior
sales team. After a consumer uses a coupon for the initial purchase of a product,
the product must then take over.
Sales promotion activities may bring several negative consequences, primarily
clutter from increased competitive promotions. New approaches are promptly
cloned by competitors, with efforts to be more creative, more attention grabbing,
or more effective in attracting the attention of consumers and the trade.
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Another increasingly perceived drawback occurs with distributed manufacturers'
coupons, such as those inserted in Sunday newspapers. While ideally these are
offered as an incentive for new or occasional customers to try the product in hopes
of making them regular buyers, research has suggested that most coupons are
redeemed by individuals who would normally buy the products anyway. In effect,
the manufacturers are subsidizing their existing sales, as only a relatively narrow
segment of the consumer market actively uses clipped coupons from the
newspapers. To address this problem, manufacturers have found that in-store
coupon devices or displays reach a wider cross-section of buyers and are more
likely to entice targeted customers.
Also, consumers and resellers have learned how to milk the sales promotion game.
Notably, consumers may wait to buy certain items knowing that eventually prices
will be reduced. Resellers, having learned this strategy long ago, are experts at
negotiating deals and manipulating competitors against one another, so that, for
example, one company's product may be on sale one week and its competitor's the
following week.
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MEMBERSHIP
LIFE TIME MEMBERSHIP OF 120000
The Lifetime Membership (Transferable/Saleable) is confirmed @
Rs.1,20,000/-
Membership cards will be issued to member, spouse, kids up to 25 years and
parents or in laws.
Access to CK-27 clubs
Direct membership to all 50 Country Clubs and resorts properties in India.
Access to Mumbai Clubs also.
Entitled for free Club facilities for Life time.
Entitled to use 170 Affiliations & 158 Franchisee properties
Annual administration charges Rs.1000/-
Entry for all regular events with VIP passes
Free Holiday package 2 nights & 3 Days for Five years in own properties.
LIFE TIME MEMBERSHIP OF 175000
The Life Membership is Transferable & Saleable.
Membership cards will be issued to member, spouse, and kids up to 25 years
and parents or in laws.
Access to CK-27 clubs
Direct membership to all 50 Country Clubs and resorts properties in India.
Access to Mumbai Clubs also.
Entitled for free Club facilities for Life time.
Entitled to use 170 Affiliations & 158 Franchisee properties
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Annual administration charges Rs.1000/-
Free Health club facilities for life time.
Entry for all regular events with VIP passes
Complimentary Holiday Home Plot of 1500 Sq. ft. in Kodai Foot Hills.
7 days and 6 nights for 30 years in our own properties in India.
One way domestic airfare for 3 days and 2 nights only once in lifetime.
LIFE TIME MEMBERSHIP OF 370000
The Life Membership is Transferable & Saleable.
Membership cards will be issued to member, spouse, and kids up to 25 years
and parents or in laws.
Access to CK-27 clubs
Direct membership to all 50 Country Clubs and resorts properties in India.
Access to Mumbai Clubs also.
Entitled for free Club facilities for Life time.
Entitled to use 170 Affiliations & 158 Franchisee properties.
Annual administration charges Rs.1000/-
Free Health club facilities for life time.
Entry for all regular events with VIP passes.
Global country club access including Dubai, Sri-Lanka and upcoming club in
Kodai Kanal also.
RCI holidays for 30 years in all 3900 RCI-Properties Nationally Or
Internationally.
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CHAPTER-III
OBJECTIVES OF THE STUDY
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OBJECTIVES OF THE STUDY
To analyze the marketing functions of branding strategies adopted by Club
Mahindra.
To analyze the promotional channels and strategies adopted by Club
Mahindra.
To determine the product & services provided Club Mahindra.
To analyze the problems and solutions for promotional strategies in
competitive age.
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CHAPTER-IV
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
RESEARCH DESIGN
For this project a descriptive research study was appropriate as this study
describes the buying perception of the consumers. This study will help the
company to launch new promotional schemes in future. Based on this study we
may have high probability of success regarding promotional strategies. The
research design is a grand plan for conducting the research investigation. It
specifies the overall framework and the specific procedure for collecting and
anlyazing the data.
Research Methodology is a strategy that guides a researcher in providing answers
to research questions and for this, research survey is being done. "Accuracy of the
study depends on the systematic application of the method". The researcher has to
decide the method to be used that helps him to get a desired direction in a
systematic way.
Research in common parlance refers to a search for knowledge. In fact research is
an act of scientific investigation.
It is the pursuit of the truth with the help of study, observation comparison and
experiment in sort of the search for knowledge through objective and systematic
method of finding solution to a problem in research.
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Present the findings to the decision makers.
STEPS OF RESEARCH PROCESS
The seven major steps
Data Collection Methods
Data Collection was done in two ways they were-
1. Primary Data Collection
2. Secondary data Collection
Determine or define the problem or opportunity that is faced
Specify what information is needed
Identify the sources of the information.
Decide on the techniques for accruing the
iinformation Gather and process the information
Analyze and interpret the meaning.
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Primary Data Collection
Primary Data was collected by using structured questionnaire and by taking
interviews of the respondents. A structured questionnaire was formulated after
conducting a pilot Survey.
Secondary data Collection
This was done by referring to the literature available on the reference books,
internet etc.
Data collected was compiled up and on the basis of percentage method depicted
through bar diagrams Interpretation was done and recommendations was given.
Sampling Design
Sampling is the selection of some part of aggregate or totality on the basis of
which a judgement or inference about the aggregate or totality is made.
Sampling Unit-
The sampling unit of my survey includes the existing and non existing customer
required loan for their automobile. This survey was done with the help of proper
questionnaire.
Area : New Delhi & NCR
Sampling Size: 30, Percentage: 100%
Sampling Method - Simple Random Sampling Method.
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DATA ANALYSIS & FINDINGS
TABLE REPRESENTING THE SALES PROMOTIONAL
AND MARKETING EXECUTIVES
Sex No. of Respondents Percentage
Male 6 20%
Female 24 80%
SALES PROMOTIONAL & MARKETING EXECUTIVES
INTERPRETATIONS
80% of the respondents are male.
20% of the respondents are female.
No. of Respondents
Male
Female
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TABLE REPRESENTING THE PRICING OF PRODUCTS
Prices No. of Respondents Percentage
High ─ ─
Reasonable 16 54%
Competitive 14 46%
Low ─ ─
Total 30 100%
PRICING OF PRODUCTS
ANALYSIS
54% of the respondents are of the opinion that the products are
reasonable.
46% of the respondents are of the opinion that the prices of the products
are competitive.
None of the respondents feel that the prices of the products are either high
or low.
INTERPRETATION
Majority of the respondents opine that the prices of the products are
reasonable.
The prices of the products are reasonable though they are competitive.
No. of Respondents
High
Reasonable
Competitive
Low
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TABLE REPRESENTING THE COMPETITOR‟S STRENGTH
Strength No. of Respondents Percentage
Quality ─ ─
Brand Image 24 80
Pricing ─ ─
Promotional Activities 6 20
Total 30 100
THE COMPETITOR‟S STRENGTH
ANALYSIS
80% of the respondents are of the opinion that the competitor‘s strength is
brand image.
20% of the respondents opine that promotional activities are the strength
of the competitors.
None of the respondents feel that quality and pricing are the strength of
the competitors.
INTERPRETATION
Majority of the respondents opines that brand image is the strength of the
competitors.
0
24
0
6
0
5
10
15
20
25
30
No. of Respondents
Quality
Brand Image
Pricing
Promotional Activities
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TABLE REPRESENTING THE QUALITY OF THE PRODUCTS & SERVICES
OFFERED BY CLUB MAHINDRA AND OTHERS
Rating No. of Respondents Percentage
Good 17 57
Very good 13 43
Fair ─ ─
Poor ─ ─
Total 30 100
QUALITY OF THE PRODUCTS AND SERVICES OFFERED BY
CLUB MAHINDRA
ANALYSIS
Majority of the respondents i.e. 57% are of the opinion that the products
are of good quality with respect to other competitors.
43% of the respondents opine that the products are of very good quality
with respect to the other competitors.
None of the respondents are of the opinion that the products are of fair or
poor quality with respect to other competitors.
INTERPRETATION
Majority of the respondents is of the opinion that the products are of good
quality and is at par with other competitors having brand names.
No. of Respondents
Good
Very good
Fair
Poor
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TABLE REPRESENTING THE MERITS OF THE PRODUCTS & SERVICES
OF CLUB MAHINDRA DIFFERENTIATES IT FROM OTHERS
Merits No. of Respondents Percentage
Reasonable price 10 33
Quality 7 24
Customized product 10 33
Finishing 3 10
Total 30 100
MERITS THAT DIFFERENTIATES THE PRODUCTS OF
CLUB MAHINDRA
10
7
10
3
0
2
4
6
8
10
12
No. of Respondents
Reasonable price
Quality
Customized products
Finishing
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ANALYSIS
33% of the respondents are of the opinion that reasonable pricing and a
customized product and services offered by differentiates the products of
Club Mahindra.
24% of the respondents are of the opinion that quality is the differentiating
factor.
10% of the respondents are of the opinion that finishing is the
differentiating factor.
INTERPRETATION
Reasonable pricing and customized products differentiates the products &
services of Club Mahindra from that of others.
In fact, all the merits such as reasonable pricing, customized products,
quality and finishing contributes in differentiating the products from
others.
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TABLE REPRESENTING THE FACTORS WHICH PLAY
A MAJOR ROLE IN DEMAND GENERATION
Factors Ratings
5 4 3 2 1
Price of the product & services 4 3 0 1 1
Awareness about the products 3 1 0 4 1
Delivery of the product ordered 1 0 5 1 2
Presentation about the product 0 2 0 3 4
Design of the product 1 3 4 0 1
5 - Very important, 4 - Important, 3 - Makes little difference,
2 - Not important, 1 – Does not make any difference.
FACTORS PLAYING A MAJOR ROLE IN DEMAND GENERATION
4
3
0
1 1
3
1
0
5
1
2
0
2
0
3
4
0
3
4
0
1
0
1
2
3
4
5
6
1 2 3 4 5
Price of the product
Awareness about the product
Delivery of the product ordered
Presentation about the product
Design of the product
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ANALYSIS
Price of the product gets the maximum of 5 rating.
Design of the product and the price of the product get the maximum of 4
rating.
Delivery of the product ordered gets the maximum of 3 ratings.
Awareness about the product gets the maximum of 2 rating.
Presentation about the product gets the maximum of 1 rating.
INTERPRETATION
Price of the product plays a major role in the demand generation.
Design of the product plays an important role in demand generation.
Delivery time of the product ordered can make a little difference in
demand generation.
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TABLE REPRESENTING THE DISCOUNT, GIFT
OR OTHERS IF GIVEN ON REPEAT PURCHASE
Discounts Given No. of Respondents Percentage
Yes 27 90
No 3 10
Total 30 100
DISCOUNTS GIVEN ON REPEAT PURCHASE
No. of Respondents
Yes
No
97
ANALYSIS
90% of the respondents are of the opinion that the discount is given on
repeat purchase.
10% of the respondents are of the opinion that discounts are not given on
repeat purchase.
INTERPRETATION
Majority of the respondents is of the opinion that discounts are given on
repeat purchase.
98
TABLE REPRESENTING THE TARGET CONSUMERS
Target No. of Respondents Percentage
Upper class 27 90
Middle class 3 10
Lower class ─ ─
Total 30 100%
THE TARGET CONSUMERS
ANALYSIS
90% the target customers are from upper class.
10% of the target customers are from middle class.
INTERPRETATION
The target consumers are the upper class and the middle class.
0
5
10
15
20
25
30
No. of Respondents
Upper class
Middle class
Lower class
99
SALES AND PROMOTIONAL STRATEGIES ADOPTED
BY CLUB MAHINDRA GROUP
ANALYSIS
90% the target customers are from upper class.
10% of the target customers are from middle class.
INTERPRETATION
The target consumers are the upper class and the middle class.
0
2
4
6
8
10
12
14
16
18
No. of Respondents
Commission
Schemes
Free gifts
Recognition
Nothing at present
100
FINDINGS & ANALYSIS
54% of the respondents are of the opinion that the products are reasonable.
46% of the respondents are of the opinion that the prices of the products are
competitive.
None of the respondents feel that the prices of the products are either high or low.
Majority of the respondents opine that the prices of the products are reasonable.
The prices of the products are reasonable though they are competitive.
80% of the respondents are of the opinion that the competitor‘s strength is brand
image.
20% of the respondents opine that promotional activities are the strength of the
competitors.
None of the respondents feel that quality and pricing are the strength of the
competitors.
Majority of the respondents opines that brand image is the strength of the
competitors.
Majority of the respondents i.e. 57% are of the opinion that the products are of
good quality with respect to other competitors.
43% of the respondents opine that the products are of very good quality with
respect to the other competitors.
None of the respondents are of the opinion that the products are of fair or poor
quality with respect to other competitors.
Majority of the respondents is of the opinion that the products are of good quality
and is at par with other competitors having brand names.
33% of the respondents are of the opinion that reasonable pricing and a
customized product and services offered by differentiates the products of Club
Mahindra.
24% of the respondents are of the opinion that quality is the differentiating factor.
10% of the respondents are of the opinion that finishing is the differentiating
factor.
Reasonable pricing and customized products differentiates the products & services
of Club Mahindra from that of others.
101
In fact, all the merits such as reasonable pricing, customized products, quality
and finishing contributes in differentiating the products from others.
Price of the product gets the maximum of 5 rating.
Design of the product and the price of the product get the maximum of 4 rating.
Delivery of the product ordered gets the maximum of 3 ratings.
Awareness about the product gets the maximum of 2 rating.
Presentation about the product gets the maximum of 1 rating.
Price of the product plays a major role in the demand generation.
Design of the product plays an important role in demand generation.
Delivery time of the product ordered can make a little difference in demand
generation.
90% of the respondents are of the opinion that the discount is given on repeat
purchase.
10% of the respondents are of the opinion that discounts are not given on repeat
purchase.
Majority of the respondents is of the opinion that discounts are given on repeat
purchase.
90% the target customers are from upper class.
10% of the target customers are from middle class.
The target consumers are the upper class and the middle class.
102
CHAPTER-V
SUGGESTIONS & RECOMMEDATIONS
103
SUGGESTIONS & RECOMMENDATIONS
A big market share and the modern techniques of sales promotional
strategies adopted by Club Mahindra is a complete and advance sponsored
has been used and always they are growing through their complete
expansion growth.
The several schemes are provided to their customers on various festivals
and other seasons.
The dependent member should get more benefits.
The pre-enquires should be entertained and a personal visit should be
organized by the company.
Coupons and gifts should be distributed among the existing customers on
their birthday, anniversary etc.
The events should be organized more frequently.
An approximate budget/bill should be provided to the customers during trip
and club visits.
The mode of payment should be more flexible for members
The qualified and experienced personnel should be appointed for detailed
enquires.
104
CHAPTER-VI
CONCLUSION
105
CONCLUSION
It is concluded that the marketing strategies of Club Mahindra are excellent and
the best Leisure and Time Share Industry in India but only because of the delay in
services. Its image may get affected. Sales promotion techniques are distinct from
most other forms of marketing in that they directly link the strategy and execution
of a marketing campaign. They are geared toward creating an immediate boost in
sales volume in response to a substantive offer in the promotion.
As opposed to advertising to build brand image or name recognition, sales
promotion is nearly always tied directly to the act of buying the product or service
in question. As such, sales promotion is considered an efficient and effective
vehicle for marketing communications.
For consumers, sales promotion provides a direct and often rational motivation to
purchase the product or service being promoted. Given the many forms sales
promotions may take, marketers must plan carefully which approach is best for
their intended audience and the intended result of the campaign. In some cases this
will be guided by precedence in particular industries; for example, soft-drink
makers tend to rely on sweepstakes and continuity programs rather than bonus
sizing or free samples.
As with any marketing communication, in sales promotions companies must be
careful not to violate their brand image with the promotion. A classic example is
with luxury brands and image.
In these categories discounting and even sweepstakes may send mixed messages
to customers, as the assumption is usually that being able and willing to pay the
106
full price is an intrinsic component of buying a status product. If the company
violates its luxury brand by "cheapening" it, the promotion may alienate the
established client base.
107
CHAPTER-VII
REFERENCES
108
BIBLIOGRAPHY
WEBSITES
www.clubmahindra.com
www.hotelindustry.com
www.salespromotion-hotel.com
www.clubmahindragroup.com
www.branding-positioning.com
www.googlesearchengine.com
BOOKS
Kotler Philip, Marketing Management, 13th Edition, New Delhi, Prentice
Hall India, 346 p.
Shajahan S. Dr., Service Marketing, 6th Edition, New Delhi, Tatamcgraw,
241 p.
John W, Kahn James V. Research In Education; Tenth Edition USA-New
Jersey: Prentice Hall inc 2006.
Lambin, J. (2000). Market-driven management: Strategic and operational
marketing. New York: St. Martin‘s Press.
Zeithaml, V., Berry, L., & Parasuraman, A. (1993). The nature of determinants
of customer expectations of services. Journal of Academy of Marketing
Science, 21, Winter, 1-12.
Marconi, J. (2000) The brand marketing book. USA: NTC Business Books.
Besterfield, D., Besterfield-Michna, C., Besterfield, G., & Besterfield-Sacre,
M. (2003). Total Quality Management. New Jersey: Prentice Hall.
Jay Winchester, ―Point, Click, Sell,‖ Sales & Marketing Management,
November 1998
Stephanie Armour, ―Companies Grapple with Gripes Posted on Web,‖ USA
Today, September 16, 1998.
109
MAGAZINES & NEWSPAPERS
Business World
Business Today
Hotel Industry - At a Glance
The Economic Times
The Hindu Business Standard Line
110
CHAPTER-VIII
ANNEXURES
111
ANNEXURE
QUESTIONNAIRE
PERSONAL INFORMATION
Name ________________________
Gender M___________ F___________
Occupation Self Emp. _______________ Business
___________Service___________ Address
________________________
Contact No. ________________________
Q1. Do you know about Club Mahindra?
Yes
No
Q2. If Yes, how do you know from?
TV
Radio
Newspaper
Internet
Other
Q3. If you are a member of Club Mahindra which features you like the most?
Worldwide Branches
Quality Packages
Services
Offers
Q4. Do you like the facilities provided in Hotels of Club Mahindra Group?
Yes
No
112
Q5. Who represents the sales promotional and marketing strategies?
Male
Female
Q6. What is the pricing of the products of Club Mahindra Group?
High
Reasonable
Competitive
Low
Q7. What is representing the competitor's strengths in comparison
with Club Mahindra Group?
Quality
Brand Image
Pricing
Promotional Activities
Q8. Products and services offered by Club Mahindra in comparison
with others?
Good
Very Good
Fair
Poor
Q9. Why chose the products and services of Club Mahindra in
comparison with others?
Reasonable Price
Quality
Customized Products
Finishing
113
Q10. Which Factors and their rating are in the major role for demand
generation with respect to Club Mahindra Group?
Factors Ratings
5 4 3 2 1
Price of the product & services 4 3 0 1 1
Awareness about the products 3 1 0 4 1
Delivery of the product ordered 1 0 5 1 2
Presentation about the product 0 2 0 3 4
Design of the product 1 3 4 0 1
5 - Very important, 4 - Important, 3 - Makes little difference,
2 - Not important, 1 – Does not make any difference.
Q11. Why the respondents choose the products and services offered by
Club Mahindra Group?
Due to Discounts
Gift
Others
Q12. Targeting of Consumer by Club Mahindra Group as like as:
Upper Class
Middle
Lower Class
Q13. What is the main sales and promotion strategies adopted by Club
Mahindra Group?
Commission
Schemes
Free Gifts
Recognition
Nothing at Present
