The medieval charm of Agra acts as a befitting backdrop to ITC Mughal - nestled amidst 35 Acres of luxurious gardens it has the distinction of being the winner of the First Aga Khan Award for Architectural Excellence, in Asia, and till date, the only Indian Hotel to have won this prestigious International recognition. The Aga Khan Award states,” A splendid redbrick edifice that blends beautifully with the city’s landscape
One has only heard stories of Mughal splendour, their imposing palaces, lavish banquets and grand lifestyles. The only way to fully comprehend this extravagant lifestyle, is to actually live it. The medieval charm of Agra acts as a befitting backdrop to ITC Mughal - nestled amidst 35 Acres of luxurious gardens it has the distinction of being the winner of the First Aga Khan Award for Architectural Excellence, in Asia, and till date, the only Indian Hotel to have won this prestigious International recognition. The Aga Khan Award states,” A splendid redbrick edifice that blends beautifully with the city’s landscape, the hotel's unique architecture draws inspiration from the 16th Century Architectural Marvel - The Fatehpur Sikri and thus recreates the architectural style of the Mughal dynasty through geometrical proportions and layout of spaces; delicate use if marble; landscaped courtyards, gardens and water bodies.”
Summary- ITC Mughal Hotel
Total rooms- 282
Target market- Leisure Travellers, Business guests, Conference, Speciality Restaurant, Spa and Banqueting.
Source of attraction- Location (city centre, facilities and room pricing)
Swot Analysis of the ITC Mughal Hotel
STRENGTHS
Location (Agra near The Taj Mahal)
Natural and cultural diversity
Demand-supply gap
Government support
Increase in the market share
WEAKNESSES
Poor support infrastructure
Slow implementation
Susceptible to political events
OPPORTUNITIES
Rising income
Open sky benefits
Increased corporate movement
THREATS
Fluctuations in international tourist arrivals
Increasing competition amongst the luxury hotels
Mission of ITC Mughal Hotel
To provide the best service to the customers
No compromise with the quality at any cost
To be the best brand in hotel Industries
Promote the Nature
Vision of ITC Mughal Hotel
To ensure that first experience of a customer on arrival is impeccable and the lobby projects a true reflection of luxury through :
WOW at every moment of truth
A commitment beyond the Market
Fulfilment of the society needs
Core Value of ITC Mughal Hotel
Enterprises exist to serve the society
Team Work
Being Ethical
Integrity
Meritocracy
Marketing Objectives for ITC Mughal(2010-2011)
- Growing Market Share from 38% - 42%,as compared to the market share of 32% last year.
- Increasing customer satisfaction level upto 30%-35% and being the best hotel in terms of Value paid for the services
- Increasing the Sales revenue upto 15% as compared to the last fiscal year.
- Increasing the online revenue generated from 3%-5.5%
Segmentation of the business of ITC Mughal Hotel
Segments explained in more details
Suppliers of Room Business
Above mentioned diagram represents the detailed segmentations of different businesses sectors where the hotel generates its revenue. This is the statistical data where the hotel increases its maximum revenue from its foreign free individual travellers (FFIT) and International Groups. The above graph clearly mentions that almost 50% of the revenue the hotel generates from these two resources.
Country Wise Segments defined below:
The above mentioned pie chart describes that the major customers of the hotel are from the Far-East (Oriental countries) and some part of the European Eunion that is represented by Italy, France and Spain majority.
Targeting of the ITC Mughal Hotel
Marketing Strategy
For the ITC Mughal I have used all the four strategies proposed in the Ansoff Matrix which are as follows:
Ansoff Matrix:
Conclusion:
- The hotel hasn't completely utilised the massive area of 32 acres. The hotel can extend in the unused space behind the main gardens to create a small golf course so as to attract more and more tourists from foreign countries who cherish the sport.
- The Kaya Kalp is a prime reason where the hotel can generate massive revenues. The hotel has remained quite discreet about the spa facilities but once advertised it will attract foreign as well as local clients to a great extent. The spa is one its kind and will be a big benefit for the hotel
- By modifying the guest lounge area we can create a space for those guests who want to have a small meeting or a discussion about their business and do not want to book a conference room for the purpose. Previously the guests used to go to the outside coffee shops to do these meetings but now after the conversion of the guest lounge into small small meeting area the guests can make their discussions and also wait and relax .
Marketing programme –
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Product & Promotion– the hotel is built on 2 acres of land which if properly utilised can make avail of a few more services and facilities to the guests including a small golf course, a lawn tennis court and more. The place behind the hotel is currently under consideration of converting it into a race track for the off terrain ATV bikes. These bikes are for those guests who want to have a thrill ride on the premises of the hotel only. The promotion of these facilities can be either done online or can even be done via the booking agents of the hotel.
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Price – The price of the hotel rooms starts form 205 £ to 1200 £ which is duly justified by the facilities provided and the appearance of the extra large suites. The hotel rooms are the biggest in their category in Agra and this is also a maor factor that the hotel surpasses its competitors is the size of the rooms. The hotel rooms include many facilities as a standard as the price of these rooms increases.
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Place – Located just next to the Taj Mahal itself the hotel has an advantage of having the only terrace swing from which the guests can have a nice view of the Taj Mahal and also enjoy a light party with their mates. The hotel is conveniently located withi minutes to the main train station and also to the Airport.
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Physical evidence – The rooms which will feature the latest technical facilities should be all the hype. The hotel rooms are luxurious beyond the expectations of the guests and as a common guest review their size awes most of them.
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Process – With speciality restaurants, a big housekeeping and on site laundry facilities, banquet halls, conference rooms, meeting rooms, business centre etc the hotel has many other processes except the main rooms division and all these processes are at a larger than life scale at the ITC Mughal hotel. These processes take a large amount of manpower. The processes should be made more streamline and require lesser steps than usual. In this manner the hotel can minimise the costs and the resources that go in these processes and as a result they will save extra costs.
Schedule of Promotional activity for year 2011
Estimated Budget: 400,000£ total. Contingency budget 50,000£.
The total hotel revenue for the fiscal year as told to me by the assistant to the Finance Executive Chief was 8 million £ for the year of 2009-2010. The hotel can easily spend 400,000 £ on the marketing aspect and therefore try to implement the above mentioned strategies.
Evaluation of Marketing Plan with their key Performance Indicators:
Objective: Customer service quality standard upto 30%-35%
Key Performance Indicator: Internal and External Audit
Frequency of Evaluation: Twice a year
Objective: Increasing Online sales upto 15%
Key Performance Indicator: Monthly Revenue reports
Frequency of Evaluation: Monthly
Objective: Escalating website attractiveness from 2.3 to 6.4
Key Performance Indicator: Website Survey, Customer Satisfaction Surveys
Frequency of Evaluation: Monthly
Contingency Plan
The Differentiation Strategy
Differentiation involves making your products or services different from and more attractive those of your competitors. How you do this depends on the exact nature of your industry and of the products and services themselves, but will typically involve features, functionality, durability, support and also brand image that your customers value.
To make a success of a Differentiation strategy, organizations need:
- Good research, development and innovation.
- The ability to deliver high-quality products or services.
- Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.
Large organizations pursuing a differentiation strategy need to stay agile with their new product development processes. Otherwise, they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments.
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APPENDICES
MARKETING AUDIT OF ITC.MUGHAL HOTEL(INDIA) ROOMS FOR YEAR 2011-20012
(March 2011-April 2012)
FEPSOS
- Functions Audit of ITC.Mughal for year 2010-2011:
7 P’s of Marketing
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The main and primary product of any hotel is Rooms (Product).Itc Mughal has total 269 rooms of different categories such as, Double, Single,Hollywood Twin(bed can be joined), Twin Adapted,ITC Executive one,Suits and finally Presidential Suits.Rooms are quiet big in size.
- Normal or basic room size of the room is 340sq.met and size of the suits is 692sq.met.
- There are total 5 different category of rooms with different tariff.which is follows.
- Chamber of emperors rate is =£185
- Mughal chamber rate is =£205
- Deluxe suit rate is =£335
- Presidential suit = mostly on request.and the rate are=£1200
Hotel is providing accommodation to the guest along with the amenities present in the room as per the standard of a five star organisation with their different tariffs depending upon the categories of the room.
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Price of the rooms is set on daily basis on internet for the best available rate of that particular day, known as BAR rate (Best Available Rate).internet rate and hotel tariff rate is always different.hotel put their rates on internet to attract more customer globally to earn maximum revenue. The rates of above mentioned rooms keep on changing day to day basis and mostly incude breakfast. These attractive BAR rates being inclusive of VAT% are been promoted on the company’s home website and on travel agent websites along with different packages. The hotel rooms are sold at a price ranging from £135 per night to £220 per night depending upon the room category except the suit category rooms, the number of occupants and the availability on that specific date.
FUNCTION
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Product & Promotion- The primary product of the hotel is accommodation and of the 720 rooms the hotel has it goes above 95 % occupancy for a major 10 months of the year.
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Price – The hotel rooms are sold at a price ranging from 85£ per night to 155 £ per night depending upon the category of the room, the number of occupants and the availability on that specific date. Whereas the primary competitors of the St. Giles hotel are:
- The Bloomsbury Hotel 4 star (125£ to 300£)
- Radisson Edwardian Kenilworth Hotel 4 star (130£ to 300£)
- My Hotel Bloomsbury 4 star (110£ to 250£)
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Place – Located on prime location of the city. so close to Taj Mahal(seventh wonder of the world).and also located near the river Yamuna which is the hot spot of the international tourist. and also so convenient for tourist to reach to other places easily like railway station just 2 Km.airport just 5Km.fromthe hotel
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People & Process – The hotel has a policy to recruit management staff from his own university. which is called welcome university. and hired contract staff of contacting the local hospitality universities and hiring interns on their industrial placements. like Frankfin.those staff can be hired for a fixed term contract period and at a lower pay grade. The hotel also hires graduate students directly form these universities. The hotel prefers hospitality graduates as they has a better know how of the hotel industry and are easier to train, enthusiastic ands. most of the staff from the hotel has done hotel management from different prestigious institutes and academies.
- The main processes at the hotel are the rooms division, four speciality restaurants which serve Chinese,muglai,continental and European and multi cuisine, Housekeeping and concierge, conference room and meeting room and business centre facilities. Banqueting function for marriages and small functions
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Physical evidence –Since the hotel was built in 1975 so there entire structure is are based on Mughal theme basis. Made up of entirely white marble and the amazingly beautiful white lobby with a beautiful big chandelier which is Asia biggest. the hotel is divided in to three blocks. one is for specifically for groups and conference, one is for marriages and events and one is typically for free travellers from all over the worlds.
Environment-
Customers:-
Meeting Customers Needs: The hotel knows that its target market has the capacity to spend a little bit more to get the ultimate in luxury. The hotel has therefore established itself as a primary luxury brand and thus the guests staying at the ITC Mughal come mainly because of these facilities. The signature brand of the speciality restaurants
Accomplishment:
The hotel has established its name as a budget property in central London which is famous for providing the guests with more facilities than they expect from it at the requested price.
Why do they buy from this company?
The hotel promises the guest that it can deliver extra services at an unexpected price. The guests usually are awed by the cheap prices of the rooms and the amount of services offered.
Customer feedback:
Online websites such as tripadvisor.com
Marketing segments
Leisure travellers local and foreigners.
Competitors
Who are your competitors?
Jaypee Palace hotel and Oberoi Amarvilas
PORTERS FIVE FORCES
As per Michael Porter the five forces that effect a business are as follows:
Competitor Strengths and Weaknesses
STEEPLE-
Social- The hotel follows the CSR Corporate Social rresponsiblity.
Technological- the hotel is investing in the new technologies so as to make the guestrooms more and more advanced such as Hp touchscreen computers.
Economical- In accordance with the VAT laws of India.
Environmental- The hotel has an on site recycling plant
Political & Legal- the hotel abides by all the taxation and employment policies.
Ethical- the hotel emphasises on staff to learn foreign languages so as to make the guests of all the ethnicities feel welcome.
Systems- In the Mughal hotel the software used is CLS and CRS computerised reservations system.
Organisation:
McKinsey’s 7S’s:
Structure –location near Taj Mahal
Strategy – quality leader strategy, largest size of rooms, best facilities available
Systems – Telephone booking, online booking
Styles –best quality services
Skills –four speciality restaurants
Staff – hospitality and tourism graduates and post graduates
Shared values – the hotel staff maintains the service standards via timely training and supervision and tests.
BIBLIOGRAPHY
The best business books ever: the 100 most influential management books you'll never have time to read, Perseus Pub., 2003
Understanding change: theory, implementation and success by Linda Holbeche, Butterworth-Heinemann, 2006
BIBLIOGRAPHY
www.learningmarketing.net
www.impactleadership.com
www.itchotels.com
www.itcthemughal.com
Telephonic Interview of the Marketing Manager at ITC Mughal
Marketing Objective- Malcolm McDonald (Marketing Plan P-280)
Marketing Segmentation - Malcolm McDonald (Marketing Plan P-370)
Adrian Palmer (Principles of Services Marketing) McGraw-Hill Higher Education
Prof. Jon Twomey – Marketing Course Notes
