Description
This is a presentation about the analysis of Taj Hotels based on different parameters.
TAJ Hotels
Click to edit Master subtitle style
1/18/13
CURRENT SCENARIO
? The
Taj brand, an epitome of hospitality in India and abroad, is working on a new strategy to connect with the customer. ? Despite its formidable lineage and its distinctive reputation, Indian Hotels has proved its willingness to refashion its brand identity and strengthen its position in the marketplace. ? Ajoy Misra, senior vice president, sales and marketing, Indian Hotels, says, “For a 106year-old company to attempt a major brand architecture exercise at this phase of its 1/18/13 existence, is a significant milestone in the
HISTORY
? From
1903 to 1970, it was a one-hotel company, the Taj Mahal Palace Hotel. ? Palaces were converted to hotels and the Taj ventured into areas that went on to become tourist destinations, with Goa, Rajasthan and Kerala being most prominent among them. ? The hotels that the company aligned itself with were of varying standards and sizes, and were sometimes located in destinations that were not ideal locations for a luxury property.
1/18/13
TAJ – A BRAND
? The
need for clarity It was around the ’90s when the almost 70hotel-strong Indian Hotels began to understand that the multiplicity of identities was actually confusing guests. There was no clarity about what brand Taj stood for. The brand identity was in urgent need of reinvention.
1/18/13
CONTD.
? The
first reorganisation occurred in the early 90s when the hotels were re-grouped into three clusters — Taj luxury hotels, Taj business hotels and Taj leisure hotels — under the Taj group of hotels. And yet there were hotels that fit into none of these categories. ? Syndicated research helped direct branding efforts. One of the key inputs was the Brand Asset Valuator, which revealed that while the Taj brand scored high on esteem, relevance and knowledge, the gap with competitors on differentiation was 1/18/13
CHANGES MADE
? American
firm Landor Associates was commissioned to undertake research, both qualitative and quantitative. They also studied models of brand architecture that exist among hotel chains worldwide.” ? That effort led to the unravelling of the brand into Taj (luxury), Vivanta (upper upscale), Gateway (upscale) and Ginger (economy / budget). Under this architecture, Vivanta by Taj was to be a brand endorsed by the Taj. It would therefore nurture the Taj brand and share its 1/18/13 brand equity.
CONTD.
? The
Taj team, under the guidance of Landor, underwent numerous cross-functional workshops or customer engagement journeys to come up with brand attributes and propositions for the different brands. ? Collectively, the team evolved brand names and visual brand drivers to define the brand and drive the fundamental brand framework. This would then define the business and brand strategies, the architecture, the interior design specifications, the experience offered at the 1/18/13 hotel, etc
Challenge in branding
? The
next challenge was concerned with launching and nurturing the new brands. ? Yet another challenge involved the task of simultaneously migrating all the hotels that belonged to a particular brand identity to the new brand. Brand prototypes were, of course, easier to classify and develop. All renovations in hotels that were selected to belong to the three brands were done keeping the guidelines in mind
1/18/13
New Scenario
? Opportunities
for the organisation as a whole needed to be leveraged through the buy-in of all stakeholders, including owners of hotels, the board of directors of an associate company, employees and shareholders, to synergise the overall brand worth. ? Customers who used to stay in the hotel because it was a Taj hotel now had to be made to feel connected and close to the Gateway or Vivanta brand proposition.
1/18/13
CONTD.
? Each
brand will build its base on the Taj constants of hygiene, honesty, integrity and customer centricity. Each brand is administered by a separate small business unit but corporate functions like HR, finance, sales and marketing, IT, legal, etc will be common for the three brands ? Gateway was launched in September 2008. A year after its launch, Indian Hotels had cause to be pleased with the performance of the Gateway brand, even in a recessionary year, proving the worth and 1/18/13 the validity of the brand architecture
Strength
? 107
yr old established brand ? 64 rank in fortune 500 ? Understanding different customer needs ? Exclusive from start– elevator,electricity ? High brand salience or image ? Celebrity status ? Iconic Stature ? Early expansion ? Strategic location ? First mover advantage
1/18/13
Weakness
? Complex
ownership structure(Hindrance from property owners) ? Brand dilution ? Confused customer perception ? Only NRI s knw about it ? Non users positioning was not clear ? Brand abuse ? Losing emotional appeal
1/18/13
Opportunities
? Untapped
potential ? 41% middle affluent class ? Luxury market to expand in INDIa ? Liberalisation expanding into international markets ? India under hotelled ? Increase in tourist ? Gateway to fill middle segment vaccuum
1/18/13
Threats
? Terrorist
attack- rebuilding customer confidence in the brand ? New brands are launching at the same time —at the time of attack ? Liberalisation—foreign competitor’s entering the market ? 37 brands coming to india ? Recession
1/18/13
Ansoff
Current product + Current mrkt- market penetration strategy CP+NM= market development strategyinternational NP+CM= product development strategy NP+ NM= Diversification strategy- domestic
1/18/13
Consumer behaviour
? Confused
customer perception ? Same quality expected from all categories ? Becoming price conscious ? DEREK knowledge is high, differentiation lower than relevance---Brand Asset Valuator ? When Kingfisher acquired Air Deccan then it changed its name to Simplify Deccan ? Indigo was first launched with TATA name attached to it. Later it changed to INDIGO
1/18/13
THANK YOU
1/18/13
doc_563843958.pptx
This is a presentation about the analysis of Taj Hotels based on different parameters.
TAJ Hotels
Click to edit Master subtitle style
1/18/13
CURRENT SCENARIO
? The
Taj brand, an epitome of hospitality in India and abroad, is working on a new strategy to connect with the customer. ? Despite its formidable lineage and its distinctive reputation, Indian Hotels has proved its willingness to refashion its brand identity and strengthen its position in the marketplace. ? Ajoy Misra, senior vice president, sales and marketing, Indian Hotels, says, “For a 106year-old company to attempt a major brand architecture exercise at this phase of its 1/18/13 existence, is a significant milestone in the
HISTORY
? From
1903 to 1970, it was a one-hotel company, the Taj Mahal Palace Hotel. ? Palaces were converted to hotels and the Taj ventured into areas that went on to become tourist destinations, with Goa, Rajasthan and Kerala being most prominent among them. ? The hotels that the company aligned itself with were of varying standards and sizes, and were sometimes located in destinations that were not ideal locations for a luxury property.
1/18/13
TAJ – A BRAND
? The
need for clarity It was around the ’90s when the almost 70hotel-strong Indian Hotels began to understand that the multiplicity of identities was actually confusing guests. There was no clarity about what brand Taj stood for. The brand identity was in urgent need of reinvention.
1/18/13
CONTD.
? The
first reorganisation occurred in the early 90s when the hotels were re-grouped into three clusters — Taj luxury hotels, Taj business hotels and Taj leisure hotels — under the Taj group of hotels. And yet there were hotels that fit into none of these categories. ? Syndicated research helped direct branding efforts. One of the key inputs was the Brand Asset Valuator, which revealed that while the Taj brand scored high on esteem, relevance and knowledge, the gap with competitors on differentiation was 1/18/13
CHANGES MADE
? American
firm Landor Associates was commissioned to undertake research, both qualitative and quantitative. They also studied models of brand architecture that exist among hotel chains worldwide.” ? That effort led to the unravelling of the brand into Taj (luxury), Vivanta (upper upscale), Gateway (upscale) and Ginger (economy / budget). Under this architecture, Vivanta by Taj was to be a brand endorsed by the Taj. It would therefore nurture the Taj brand and share its 1/18/13 brand equity.
CONTD.
? The
Taj team, under the guidance of Landor, underwent numerous cross-functional workshops or customer engagement journeys to come up with brand attributes and propositions for the different brands. ? Collectively, the team evolved brand names and visual brand drivers to define the brand and drive the fundamental brand framework. This would then define the business and brand strategies, the architecture, the interior design specifications, the experience offered at the 1/18/13 hotel, etc
Challenge in branding
? The
next challenge was concerned with launching and nurturing the new brands. ? Yet another challenge involved the task of simultaneously migrating all the hotels that belonged to a particular brand identity to the new brand. Brand prototypes were, of course, easier to classify and develop. All renovations in hotels that were selected to belong to the three brands were done keeping the guidelines in mind
1/18/13
New Scenario
? Opportunities
for the organisation as a whole needed to be leveraged through the buy-in of all stakeholders, including owners of hotels, the board of directors of an associate company, employees and shareholders, to synergise the overall brand worth. ? Customers who used to stay in the hotel because it was a Taj hotel now had to be made to feel connected and close to the Gateway or Vivanta brand proposition.
1/18/13
CONTD.
? Each
brand will build its base on the Taj constants of hygiene, honesty, integrity and customer centricity. Each brand is administered by a separate small business unit but corporate functions like HR, finance, sales and marketing, IT, legal, etc will be common for the three brands ? Gateway was launched in September 2008. A year after its launch, Indian Hotels had cause to be pleased with the performance of the Gateway brand, even in a recessionary year, proving the worth and 1/18/13 the validity of the brand architecture
Strength
? 107
yr old established brand ? 64 rank in fortune 500 ? Understanding different customer needs ? Exclusive from start– elevator,electricity ? High brand salience or image ? Celebrity status ? Iconic Stature ? Early expansion ? Strategic location ? First mover advantage
1/18/13
Weakness
? Complex
ownership structure(Hindrance from property owners) ? Brand dilution ? Confused customer perception ? Only NRI s knw about it ? Non users positioning was not clear ? Brand abuse ? Losing emotional appeal
1/18/13
Opportunities
? Untapped
potential ? 41% middle affluent class ? Luxury market to expand in INDIa ? Liberalisation expanding into international markets ? India under hotelled ? Increase in tourist ? Gateway to fill middle segment vaccuum
1/18/13
Threats
? Terrorist
attack- rebuilding customer confidence in the brand ? New brands are launching at the same time —at the time of attack ? Liberalisation—foreign competitor’s entering the market ? 37 brands coming to india ? Recession
1/18/13
Ansoff
Current product + Current mrkt- market penetration strategy CP+NM= market development strategyinternational NP+CM= product development strategy NP+ NM= Diversification strategy- domestic
1/18/13
Consumer behaviour
? Confused
customer perception ? Same quality expected from all categories ? Becoming price conscious ? DEREK knowledge is high, differentiation lower than relevance---Brand Asset Valuator ? When Kingfisher acquired Air Deccan then it changed its name to Simplify Deccan ? Indigo was first launched with TATA name attached to it. Later it changed to INDIGO
1/18/13
THANK YOU
1/18/13
doc_563843958.pptx