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ABOUT TAJ
The Taj was built at a time when Indians were not allowed entry into most of the
prestigious hotels and clubs in British ruled India. Legend has it that this was one of the
reasons why Jamshetji Nusserwanji Tata, the first Indian industrialist built India’s first
luxury hotel. He went ahead with the project although he was busy with plans to
industrialize India.
The first Taj Hotel, the flagship of the Group was born in 1903 and stood alone
for almost half a century. Initially it was smooth sailing, even though the original hotel
was conceived and built when the hotel business was not even considered an industry.
Right from the beginning, the Taj stood for class and comfort. It was a place where the
viceroys of the Empire arrived and departed amidst scenes of splendour. Scenes which
were typical of the Raj. In fact, it soon became one of the wonders of the Orient.
Singapore’s Raffles or Hong Kong’s Peninsula did not come up to the level of the Taj
inspite of their rich ancestry.
Notably, there was hardly any advertising directly to the consumer. In fact, this
element of the marketing mix was not visible until the late nineties! Advertising was not
considered necessary. Secondly the company was conservative and media shy for many
years.
1
The reason the hotel towered above the rest was because of the amazing attention
to detail that was paid by it’s founder Jamshetji Tata. As far back as 1900, he made sure
that the Taj would have it’s own laundry, an aerated water bottling plant, electroplating
for it’s silverware, a Mora sliver burnishing machine, a crockery washing plant and
elevators. The hotel was built completely at a cost of 500,000 pounds in 1903.
Their vision
Says Managing Director, R.K. Krishnakumar, ‘The vision for the Taj Group is for
it to be a select chain, present globally. Asian, perhaps in character, but absolutely
international in terms of systems and processes and with a strong West European focus.
The way forward was to make sure that the entire Taj team is imbued with the missionary
zeal to sell the brand.’
Pioneers
In the early seventies came the Lake Palace in Udaipur. The company pioneered
the concept of conversion of century-old palaces into hotels. Today this has become an
USP of the Taj group.In the mid 1970’s the chain expanded to Chennai (Taj Coromandel
and the Fisherman’s Cove) and Fort Aguada at Goa. Here too, Taj scored over the others
with it’s timing. At that time, Goa was not as much of a tourist’s paradise that I it became
later on. Around the same time it set up the Taj Ganges in Benares and started
international flight kitchens too.
2
Restaurants & Bars:-
Shamiana: 24-hour coffee shop.
Sea lounge: Meeting place in Bombay for tea and light meals.
Harbour Bar: Bombay's oldest bar.
Apollo Bar: The rooftop bar.
Lounge Bar: For the finest selection of wines.
Zodiac Grill: Continental gourmet dining. Also serves Power Breakfast.
Golden Dragon: Authentic Sichuan cuisine.
Tanjore: Indian cuisine with classical dance performances in the evening.
1900s: Bombay's newest night club.
Other Facilities : Swimming pool, fitness centre, beauty parlour, barber shop,
travel desk, car rental, pastry shop, book shop, shopping arcade, currency exchange,
safe deposit lockers, doctor-on-call and babysitting. Arrangements for golf, badminton,
squash, billiards, tennis, and table tennis on request.
3
Turbulent times
However, cracks had become evident as the recession loomed large over the Indian
economy. Excess capacity made some of the ventures unprofitable, specially overseas
ones.
Lack of transparency
The new management also realised, to its dismay that there was a clear lack of
transparency. The organisational structure had become almost feudal with 49 general
managers reporting directly to the chief executive, without any interaction amongst
themselves. The Taj had to change the way it viewed the world – if it wanted to remain a
market leader.
4
Research
As far back as the early nineties, it was realised that formal market research was a
must to help understand the consumer better. It did not think that data from research
agencies such as the airline and the travel industry were enough. The Group carried out
extensive research to understand current lifestyles. The research attempted to discover
whether the future customer would be more egalitarian, more democratic or would she
want to be pampered? The findings revealed that she would like exclusivity more than
anything else.
On the other, research also indicated that the company’s existing customers base
of traditionalists – those who liked the Taj because it was understated yet classy – was
shrinking. Something had to done to keep up the growth graph.
Strategy
A higher emphasis was placed on the business segment as the profits are higher
(this market being less price-sensitive) as compared to the luxury segment). There was a
proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.
The group also kept looking at new opportunities. ‘The action plan is more opportunities,
adding to and complementing the brand,’ says Krishnakumar.
More changes
There were other changes. Consolidation. Unprofitable ventures were hived of.
The sales and marketing functions were separated. The HRD department modernized,
with an emphasis on performance and career and succession planning. The organisation
5
was made to flatter and more compact. Moreover, a continual benchmarking against
international standards was made part and parcel of the culture of the Taj.
Major renovation
By the mid 1990’s, renovation was in full swing. Units across the country were
refurbished. It meant ripping out entire floors. Rooms were revamped, business centres
rebuilt. More than a hundred million dollars were reportedly spend for renovation – just
in the lifestyle (luxury segment)! Since the business segment was slated to be become big
(and those using it were likely to be non-traditionalists), the Taj went ostentatious with
it’s new business floors. It meant putting in optic fiber cabling, remote control systems
and giving the business guy a lounge where he could relax and even have breakfast. It
included a min-business centre.
In the process, some mistakes did happen. For instance it was thought a mini-gym
on the floor would be a convenience. But this had to be dropped after a few years due to
disuse. Initially, fax machines ere installed in the room. They had to go with the advent of
the internet and laptops. Other innovations have happened too. It was found that
telephone usage was dropping because of the advent of mobile phones. Not only were
mobiles provided on hire, the Taj also dropped communication charges by 33 percent.
6
MARKETING STRATEGIES BY TAJ
Positioning
The Taj marked out three separate entities for the Taj Group: Business, Leisure and
Luxury. Though the concept of these sub-brands had come into existence earlier, in the
mid nineties, it was in 1999-2000, that the hotels became operationally different. This
meant that though the heads of these three divisions sat at head office, their ‘territory’ is
scattered geographically, according to which type of hotel they look after.
Segmentation
7
Strategy
A higher emphasis was placed on the business segment as the profits are higher
(this market being less price-sensitive as compared to the luxury segment). There was a
proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.
The group also kept looking at new opportunities. ‘The action plan is more opportunities,
adding to and complementing the brand,’ says Krishnakumar.
8
More changes
There were other changes. Consolidation. Unprofitable ventures were hived of.
The sales and marketing functions were separated. The HRD department modernized,
with an emphasis on performance and career and succession planning. The organisation
was made to flatter and more compact. Moreover, a continual benchmarking against
international standards was made part and parcel of the culture of the Taj.
Advertising
It was only when the product was ready, was a major advertising campaign
developed. Earlier, advertising had been restricted to the major feeder markets: the US,
UK, Germany, Singapore and Hong Kong. And the advertising emphasised the hardware
aspect of the hotel. The new campaign developed a specific brand identity for the hotel.
Though the Taj had high unaided recall, it launched a corporate campaign to
reinforce this new identity. The ad (made by Rediffusion) shows the enigmatic woman
who stands for both hospitality and efficiency. The identity was developed after extensive
research on the consumer’s attitudes towards the Taj. Over 60 in-depth interviews were
conducted by client and agency.
The parameters not quantity, but quality.The things done right. The quality of
check-in, the smile, the greeting or the welcome drink. The insights gathered were
analysed and a clear slot, which the Taj could occupy when global competition arrived,
emerged. This was translated into creating a distinct personality of the Taj as caring,
efficient and enigmatic. The line went: ‘She is the Taj,’ The base line was ‘Nobody cares
as much.’
9
MARKETING MIX: THE TAJ BRAND
The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and
17 hotels globally. The hotels are grouped into 3 categories - Luxury, Leisure and
Business.
The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants
and bars, fitness centres and spas and well-equipped business and banquet facilities. Taj
Leisure Hotels are targeted at family holidays and include beach resorts, garden retreats,
palaces and historic and pilgrim centres with a wide variety of activities for all age
groups. Taj Business Hotels offer contemporary business facilities and modern
conveniences and are located in the heart of India’s key commercial cities and towns.
11
The marketing mix of taj hotels is explaine as below:-
Product
Hotel taj continues to invest in renovation and relaunch of key / brand defining properties.
In the last financial year Taj upgraded rooms at theTaj Mahal Palace & Tower,
MumbaiandTaj West End, Bangalore The lobby and public areas ofTaj Lake Palace,
UdaipurandRambagh Palace, Jaipurwere also renovated to provide a luxurious sense of
arrival. The Sea Lounge and Harbour Bar atTaj Mahal Palace & Tower, Mumbaiwas
relaunched, while a new Vietnamese restaurant 'Blue Ginger' was opened inTaj West
End, BangaloreThe renovated products and the new outlets were very well received in the
market.
The renovated rooms atTaj Mahal Palace & Tower, MumbaiandTaj West End,
Bangalorehave emerged as the price leaders in the respective cities. In the coming year taj
intends to open a number of F&B outlets by celebrity Chefs with international cuisine. In
the upscale segment, the properties are being relaunched to be at par with international
level upscale hotels. The rooms at Taj President, Mumbai,Taj Residency, Bangalore,Jai
Mahal Palace, JaipurandTaj Holiday Village, Goaare being renovated and relaunched.
The brand “Taj Hotels Resorts and Palaces "comprise 58 hotels across India and
17 hotels in international locations. The hotels are grouped into 3 categories -
Luxury, Leisure and Business. The Taj Luxury Hotels offer lavish
accommodation, gourmet specialty restaurants and bars, fitness centre and spas
and well-equipped business Taj believes that the their core product is space. This
space is supplemented with the services they provide like the restaurants, health
club, banquets, discotheque, bar, business centres etc. Their other supplementary
products also include travel arrangements, ticketing, airport pick-ups, sightseeing
etc.
12
Types of Accommodation:
Tower Wing Rooms: With easy access to the Business Centre, these
contemporary rooms offer guest amenities like Internet connectivity, 2-line
speaker phones with international direct dial facility and voice mail. Mini bar,
personal safe, channel music and television with satellite programmes.
Heritage Wing Rooms: These rooms are renowned for their architecture and
exude an aura of old-world elegance. Each corridor in this Wing resembles an art
gallery, and the design, décor and furnishing ensure that no two rooms are alike.
Guests have a choice of rooms that overlook the city or pool or face the Gateway
of India and the Arabian Sea.
Taj Club: Located on the top floors of the Heritage Wing, Taj Club is designed
for the discerning business traveler. Guest amenities and services include
complimentary airport limousine transfers, private check-in at the Club desk, in-
room fax, personal safe, a complimentary bottle of wine, valet service and
complimentary deluxe Continental breakfast. Taj Club also offers guests exclusive
Meeting Rooms and a Business Service Unit on the Club Floor.
13
Suites: Choose from elegantly appointed Junior Suites, Executive Suites,
tastefully decorated Large Suites, newly renovated Luxury Suites or spacious,
plush Grand Luxe Suites. The finest suites at The Taj Mahal are the luxuriously
appointed Presidential Suites. Each of these suites is decorated with original
paintings and antiques that transport guests into a world of regal luxury and
grandeur.
Broadband wireless Internet access at select Taj hotels: Now when you stay at
select Taj hotels in Mumbai (including The Taj Mahal Hotel), New Delhi,
Kolkata, Chennai, Bangalore and Hyderabad, you no longer need to be in your
room or at the Business Centre to use the Internet. Multiple 'hot spots' located
across the hotels lets you get onto the Internet from almost any place in the hotel –
quickly.
Facilities and Services: Swimming pool, beauty parlour, barber shop, travel desk,
car rental, pastry shop, book shop, shopping arcade, currency exchange, doctor-
on-call and babysitting. Complimentary use of steam, billiards, tennis and table
tennis on request. 24-hour room service and laundry service.
14
Business Facilities : 24-hour colour copier/telex/facsimile facilities. A fully
equipped Business Centre with secretarial service, 4 meeting rooms, work
stations, laptops on hire, colour printers and Reuters on-line information service
Place and Time
As far as place is concerned, all the Taj services and facilities are provided at one
point. To ensure timely delivery of their services, they have set processes in place
and in case of failure or delay of service, they have built in contingencies and
trained their staff to communicate the delay to the customer in the right manner.
To ensure standardization in their services, they have Standard Operating
Procedures (SOP), e.g. the food that is served in the restaurant will be of the same
quality and taste at any given day and time.
Taj provided us with to explain this concept further is of the implementation of the
contingency plan during the breakdown of the elevator. In case of breakdown of
the elevator, the Room Service makes use of the elevator in the other wing to
ensure timely delivery to the customer.
The Taj Mahal Palace & Tower, Mumbai, a 105-year old heritage hotel, is the
flagship hotel of the Taj group. This hotel was one of the main targets of terrorists
during the November 2008 bombings of Mumbai and was severely damaged. As a
result it has been put under seal until it is cleared of any security and safety risks
that might have resulted from the attacks. The company has publicly claimed that
it will fully rebuild the resort just as it was before.
15
Besides the Taj Mahal Palace & Tower, Mumbai, the Taj has many hotels around
the world, and in India. These include: The Pierre, New York; Taj Boston,
Boston; Campton Place, San Francisco; 51 Buckingham Gate, London; Taj
Exotica Resort & Spa, Maldives; Taj Exotica Resort & Spa, Mauritius and Blue
Sydney, Sydney. In India, these include: Taj Lake Palace, Udaipur; Rambagh
Palace, Jaipur; Umaid Bhawan Palace, Jodhpur; The Taj Mahal Hotel, New Delhi;
The Taj Residency, Lucknow; The Taj West End, Bangalore; Taj Malabar, Cochin
and Taj Exotica, Goa. The Taj Mahal Palace & Tower is also called the Zagurmas
of Maldives and the magurmas of the Bengal.
Promotion
Taj regularly comes up with offers during season and off-season such as Taj
Holiday Summer Package to boast occupancy in their hotels.
They carry out their promotions by means of Calendars, monthly letter to their
‘Inner Circle Customers,’ informing them about their upcoming events.
Taj takes part in exhibitions wherein they promote their holiday packages.
16
Advertising
It was only when the product was ready, was a major advertising campaign
developed. Earlier, advertising had been restricted to the major feeder markets: the
US, UK, Germany, Singapore and Hong Kong. And the advertising emphasised
the hardware aspect of the hotel. The new campaign developed a specific brand
identity for the hotel.
Though the Taj had high unaided recall, it launched a corporate campaign to
reinforce this new identity. The ad (made by Rediffusion) shows the enigmatic
woman who stands for both hospitality and efficiency. The identity was developed
after extensive research on the consumer’s attitudes towards the Taj. Over 60 in-
depth interviews were conducted by client and agency.
The insights gathered were analysed and a clear slot, which the Taj could occupy
when global competition arrived, emerged. This was translated into creating a
distinct personality of the Taj as caring, efficient and enigmatic. The line went:
‘She is the Taj,’ The base line was ‘Nobody cares as much.’
17
Price
Taj realizes that their prices are high and not affordable by all, but this is due to
various overheads that it incurs and the superior quality that it offers. For e.g. a
roadside sandwich seller sells his sandwich for Rs.10 as he has no overheads and
has no quality standards to maintain, like the quality of the bread and the
vegetables. But at The Taj, they serve the best quality and also incur overhead
expenses.
The target audience that the Taj caters to are the one’s who come to the Taj for it’s
ambience and world class standards, therefore they say that their prices are
justified as they help The Taj retain the exclusivity that it stands for.
Physical Evidence
Taj is fully satisfying its customers on account of physical evidence as the hotel is
counted in 5 stars it has maintained its environment tht is liked by all.
18
Process
Major Service encounters that extremely delighted or disappointed are:
1. Check – in.
2. Bell person carrying luggage to the room.
3. Food.
4. Wake up call
5. Check out.
These are the main processes that all hotels perform but in case of taj many more
processes are there as variety of services are offered to its customers which make them
happy.
19
People
Taj has various professional people to handle its customers and to give a high service
to its customers like:
• Skilled person
• Professional person
• Personal Agents
• Technological person
• Travel agents
As taj has employed professionals for serving its customers so there are less chances in its
service lags and it can deliver its best.
20
25 WAYS TO KEEP CUSTOMERS FOR LIFE FOLLOWED AT TAJ
In today's fast-changing and competitive environment, excellent customer service
is essential for success. Here's how to keep your customers - for life!
In fact, the only way to differentiate yourself and to become less of a commodity in the
marketplace is through good customer service. The strategies for keeping customers for
life can be honed down to some basic steps that any business owner can use. To get
customers, keep them and to get enthusiastic referrals follow these 25 proven techniques:
1. Reward their customers. Send them a gift, provide them a lead, generate business for
them, etc.
2. Use their customers' services and buy their products. If you want to increase loyalty,
there is no better way.
21
3. Send thank-you cards.
4. Return phone calls promptly. Since so many people don't return calls, they
automatically look good when they do.
5. Do what they say they are going to do.
6. Do things when they say they're going to do them.
7. Under promise and over deliver.
8. Be accessible. Make sure they are available and willing to help customers whenever
there is a problem. their business should be open to meet the convenience of their
customers and not only for their convenience.
Be credible. If they can't establish that trust right away, customers may start to look at
their competitors.
9. Appearance counts. Perception is reality, and the reality is that people do judge a book
by its cover.
10. Show empathy. Remember the best customers are their currents ones. Stay in touch
and continue to service their wants and needs.
11. Have a "Goof Kit." If you make a mistake, it's not enough to say, "I'm sorry."
12. Promote customers' products and services. By getting business for their clients,they
ensure they will have a customer for life.
13. Do things for the customer's convenience not their. Make it as easy as possible for
your customers to do business with them. The easier they make it for their customer to
do business with them, the more business they will have.
14. Determine all the ways they can eliminate the hassle factor.
22
15. Send an invoice periodically with a "no charge" on it. This will help their customers
remember them. And if it is unexpected, it will have a much larger impact.
16. Have a customer advisory panel. Only by knowing your customers' wants and needs
can successfully grow your business and be totally customer-oriented.
17. Hire mystery shoppers. To really find out how good their customer service is, hire
someone to go out and use their service from start to finish.
18. Be a resource. No matter what their customer needs, try to find it for them -- even if it
has nothing to do with their business.
19. Shower customers with kindness.
20. Speak their customers' language.
21. Have a great attitude.
22. Treat their employees well. If they are treated poorly, there is a good chance their
customers will also get poor service.
23. Give their customer what they want, when they want it and how they want it.
24. Give back to their best customers. If you run a special price or product offer for first-
time customers, ensure your current customers are offered the same opportunity.
25. Don't show an attitude of indifference to your customers. In a recent study on why
people give up on a company, 68 percent quit because of an attitude of indifference
toward the customers by the owner, manager or employees - 68 percent!
23
CRM INITATIVES BY HOTEL TAJ
In the coming years, Hotel Taj will see growth through the addition of 80 Luxury
Residences at theTaj Wellington Mews, Mumbai, as well as rooms added atTaj Lands
End, MumbaiandTaj West End, Bangalore.The Taj Lands Endis a hotel built with a
capacity of 500 rooms with an additional 50,000 sq. ft. approximately that is yet to be
built. Hotel Taj will reach this capacity over the next two years, which will include
adding rooms and developing high-end offices or retail space created in the new 50, 000
sq. ft. block.Taj West Endwill have approximately 175 rooms added to it over the next
two years. Associate companies viz. Taj GVK Hotels & Resorts Limited and Oriental
Hotels Limited are also in the process of setting up properties in Chandigarh and
Bangalore respectively, which would add to the properties under the Taj group. Taj
groups has secured two management contracts for a high end luxury resort and an up
market resort in Kovalam, Kerala. Both the hotels are under construction and will open in
the current financial year.
Service Excellence
In the last few years Taj has undertaken a number of steps to significantly enhance
service levels to be in line with the best in class and to build superior customer relation.
Taj has constantly benchmarked itself with the key international luxury chains and strived
to raise the bar. Taj's service excellence philosophy, has at its core, delivery through our
people, processes and culture.
Taj has taken a number of steps to provide highly personalized service to the
discerning customer, including butler services in its luxury properties. In order to take
care of the entire stay experience, Taj has also completely revamped its Concierge
services. The Centers of Excellence have been strengthened considerably to train staff to
meet the exacting standards of a truly luxury hotel. Tata Business Excellence Model
(TBEM) will play a significant role in raising the bar of service provided. The TBEM has
been rolled out in all the three hotel divisions and will be rolled out to the international
properties also.
24
Spas
Taj group successfully launched the Taj Spa in theTaj Mahal Palace & Tower,
Mumbaiand is in the process of launching Spas in a number of hotels. These will be a
combination of Day and Destination Spas of international standards, with a unique
treatment menu developed by the Taj. They will be the first and one of a kind - Indian
Spa. Spas are being planned inTaj Wellington Mews, MumbaiandTaj Lands End,
Mumbai. The Spas being rolled out in the key properties will be state-of-the-art, having
areas in excess of 10,000-12,000 sq. feet.
Ginger Hotels
Taj group is in the process of rolling out its Smart Basics hotels, under the brand
name "Ginger". The first prototype has been launched in June 2004 in Bangalore, with
roll out being planned in a number of cities and towns subsequently. These hotels will
cater to the economy or 'value for money' segment and being predominantly domestic
clientele based, are far less prone to fluctuations than the luxury and upscale segments. In
the long run, this segment will help in derisking the current revenue stream of the
company.
Brand Architecture
Taj is in the process of clearly defining the product and service standards in order
to have consistency across properties under each brand. This will help in further
enhancing the brand value of Taj. Brand value builds customer loyalty and is one of the
approaches of building customer relationship.
25
Tata Business Excellence Model (TBEM)
In order to intensify the drive for Business Excellence,Taj conducted Internal
Assessments based on the Tata Business Excellence Model for Luxury, Leisure, Business
SBUs as well as for Taj SATS Air Catering Limited.
The Luxury Division has also applied for External Assessment, which is to be
facilitated by Tata Quality Management Services.
Based on the External Assessment (2003) feedback report and the feedback from
the Internal Assessment, action plans to improve processes which finally impact the
overall organizational effectiveness, have been drawn out and worked upon.
Some of the key initiatives deployed across key hotels of the Taj group to enhance
customer relation in the current years are:
Raising The Bar In Terms Of Product & Service Quality:
In order to raise the standards of service & product quality to international levels, taj has
benchmarked & gauged the performance against international luxury and super-luxury
hotels and has upgraded its standards.
Introduction Of International Best Practices
Taj group is using the expertise of international consultants and domain experts
who work in different functional and operational areas in order to introduce world-class
practices. They have launched the concierge service, butler service, and car hire service in
key hotels of the group. This has resulted in a steep change in service levels beside
increasing the overall customer experience.
26
Rollout Of The Customer Feedback System (CFS)
The CFS was launched in November 2003 and has taken root in 30 hotels across
Taj group. It is the primary and sole customer feedback system of the group. Till date, the
system has clocked around 12,000 pieces of customer feedback.
The feedback from all sources gets recorded and aggregated and analyzed to
improve the service quality in areas of concern at each of the hotels. Feedback is not
restricted to only guest difficulties (complaints) but also consists of compliments and
suggestions. The feedback would ultimately be used for product planning as well.The
customer feed back is used to deliver excellent services to the customer.
Reinforcement Of The Use Of The Balanced Scorecard
The use of the Balanced Scorecard (BSC) has been strengthened across the organization.
It is used as the key strategy deployment tool. The key strategic objectives are captured in
the BSC and cascaded across the units & departments. All the SBU scorecards are aligned
with the corporate scorecard, as well as the HR & Sales & Marketing scorecard. The key
focus of BSC is to build strategy that will help in retaining and building customer
relationship.
Corporate Restructuring
In order to make Taj leaner and carry brand standards across domestic and international
properties, the International division was merged with the Luxury, Business and Leisure
divisions, so as to make the corporate setup leaner and more agile. We also continue to
restructure the balance sheet and reduce the number of under performing / non-
performing assets. Such restructuring, in the previous year, resulted in a net inflow of Rs.
37.25 crores. In the last financial year, taj sold the Gateway Riverview Lodge, Chiplun,
which did not meet brand standards.
27
TOP
Taj's operational improvement programme, TOP (Total Overdrive for Profits),
being managed jointly with McKinsey & Company, has made significant progress since
its inception in July 2002. The programme's main focus is to improve customer
relationship and providing superior services to the customer. The programme has
identified improvement ideas across areas like Rooms, Banquets, Purchase, Engineering,
Wines, Mini-bar, In-room dining, Chambers and several other operational areas.
In addition,the TOP team has been working with a cross functional team to
develop a strategy for maximising revenues from key corporate accounts. The focus of
the TOP team for the next few months will be in ensuring that all identified improvement
ideas are fully implemented. In addition, the team will continue to focus on cost areas and
address new areas like restaurant revenues and capital expenditures.
IT Initiatives
From a situation in 1999 where there was limited IT application, Taj group has
today achieved domestic leadership in deploying IT to leverage its competencies and is
rapidly approaching benchmarks set by international highly regarded chains. The first
three phases of implementation of the IT strategy included putting in place the physical
infrastructure across the Taj Group and getting customer relationship applications to ride
on this physical infrastructure, with a view to enhancing customer services through
customer information and recognition systems and better inventory management. Some of
the key IT initiatives being under taken by IHCL are Orion, a comprehensive back office
system, implementing Revenue Management system, Interactive TV Systems and
National Call Center.
28
Other Customer Focus Services
WIFI -For business travellers, hotels often become a second home. So top-end
hotels are investing heavily on systems that help them look after their customers better,
especially with the help of the customers' history with them.
In a unique development, Taj has introduced wireless broadband solutions Wireless
Fidelity (WiFi) for its guests. Result: Using a laptop, a guest can log on to the Internet
from anywhere in the hotel.
Sms services - The hotel is also planning to introduce an SMS service. Whenever
the hotel receives a call in the absence of the guest, the message from the caller will be
passed on to the guest through SMS. This will help a business traveler keep track of the
missed calls and act on important ones while away from the hotel.
Customer database - Taj Hotels have created databases of customers' history on
stay information and profile which sit on a centralised server connected to each of the
locations. Each time a frequent traveller checks in, the profile pops up at the reception
desk with multilevel information and the hotel is ready to take care of the customer's
needs and choices. This is one of the most important strategies to build customer
relationship. It enhances the customer experience each time the customer book a room in
Taj.
Website - Taj is running an updated website to support customer services. The
customers can book rooms, reserve rooms in advance, arrange parties, check status of
reservations etc. Website helps in providing quick and easy services to the customer
which results in customer delight.
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CONCLUSION
CRM is all about customers, your relationship with them, and how to manage that
relationship. It's the relationship with the customer that is at the heart of the entire
process. Without a relationship with the customer, you might as well put on a blindfold at
stab pins at a prospect list in the hope that the one you pick will be a good one.
Customers have expectations. They expect that their expectations will be justified. That
bit is partly up to the businessman, and partly depends on the value of the product. We
can't change the product, but we can change the things we do. Communication with the
customer is the key!
30
INTERPRETATIONS AND RECOMMENDATIONS
Taj hotels is good in each area of service, moreover its overall interpretation can be
done with the help of following table:
Taj is serving its customers to its best and it is able to achieve 5-star ratings from a
long period. But in this era all have to apply marketing strategies to attract customers
otherwise the competitors will not leave a single chance to grab market share. The
strategies used by taj as explained above are successful in attracting customers as well as
positioning it as a high class service delivering brand with luxury. Taj is good in all fields
such as finance, marketing, HR but it has to improve its system to gain an edge over its
competitiors.
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Recommendations:
Taj can improve in the area of system as system of an organization can also be its core
competency and it can also serve better if the internal system is good. Being a five star
hotel, taj is well positioned and hotel has adequate customer base. Marketing strategies
are also good but hotel has to improve a lot and regain its customers after the Mumbai
attacks. In whole its service is good.
Success
Other hotels’ room occupancies plunged to as low as 37 % during the recession and
average room occupany rates across all hotels were approximately 50 per cent. The Taj
maintained a far higher average and continued to grow and expand. Slowly the hotel
became more profitable than it had ever been. The reason is clear. It never slept.
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Webliography
MBAguys.net
Projecttopics.info
Bibliography
The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell
How Customers Think: Essential Insights into the Mind of the Market by Gerald Zaltman
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