Hospitality Industry

BLUE OCEAN STRATEGY

Group Members:Amit Jain (10BM60006)Ankit Pandey (10BM60012)Prashant Saurabh (10BM60062)

World class high-end hotels exist in IndiaBut World class event management companies aren’t

present here (No brand name in Event Management)The Indian Hotels Company (IHCL) and its subsidiaries,

collectively known as Taj Hotels Resorts and Palaces, is one of Asia's largest and finest group of hotels

Taj Hotels Resorts and Palaces comprises 66 hotels in 42 locations across India (mostly metropolitan and tier 1 cities)

Current Scenario

Ginger (economy hotels) is IHCL’s revolutionary concept in hospitality for the value segment

25 Ginger hotels across India (mostly tier 2 cities)Taj Hotels currently provide business event planning in

about 32 cities (mostly big cities) and wedding planning in just 6 cities

Ginger doesn’t provide any such servicesNo event management company has a pan-Indian

presence or recognitionHere our BLUE OCEAN STRATEGY for Taj comes in…

Current Scenario contd…

The market for event management in India is growing at a staggering pace (attributable to booming economy and other factors)

Recently a Delhi MLA spent about $22 million for son’s wedding at a farmhouse – the event was managed by a French event management company

With increasing globalization, hospitality/celebration needs for foreign guests are becoming significant in both corporates and government

No Event/Hospitality/Celebration consultancy provided in IndiaNo Brand name in event managementTier 2 cities now witness rising number of affluent entrepreneurs

Market Status

Hotels Targeting High-EndTargeting Value segment

Event management companiesMostly in metropolitans and few in tier-1 citiesNo pan-Indian company

Strategic Groups

The Blue Ocean Strategy for Taj hotels merges the two strategic groups

It extends it’s core competency in hospitality to event management and event consultancy

Event consultancy – a pioneer in IndiaThe main idea is to eliminate location barriers

for celebrations and events (provide world class Taj hospitality anywhere)

To maintain brand equity of Taj, events below certain budget will be handled by Ginger

Blue Ocean Strategy

Infrastructure costsPersonnel costsBrand value360-degree celebration managementLocation limitationsPriceEvent consultancy non-existent

Key Factors of Competition

Strategy Canvas

Price

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Strategy Canvas of Hospitality Industry

Taj

Event Management companies

High End Hotels

Factors of Competition

Off

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Strategy Canvas (Taj Group)

Price

Infra

struc

ture

Cos

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nnel

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Brand

Val

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360`

Cel

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Strategy Canvas of Taj

Taj

Factors of Competition

Off

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Complementary qualities.Focus

To widen the reach of our world class

hospitality by foraying into event

management

Compelling Tagline

Celebrate with us – anywhere

anytime

DivergenceProvide the niche event consulting

EliminateLocation constraintsPrice constraints

RaisePresence in tier 2 citiesBelow-the-line advertisingLogistics expertise

ReduceAbove-the-line advertising.

CreateA niche consultancy in the form of Event and Hospitality consultancy

Four Actions Framework

Tier 3 “unexplored”Non customers

Government guests and foreign delegatesCorporates houses / Celebrations at small towns

Tier 2 “Refusing” noncustomers

Small entrepreneurs/corporat

es in big cities

Tier 1 “Soon-to-be” noncustomersWidely present/

Growing companies

Three Tiers of Noncustomers

Foray into the region between the existing strategic groups of Hotels and Event Management

Provide the niche Event consultancyWiden the reach of service (extensive presence)Target segments –

High net worth individualsBig Corporates TajGovernmentMedium and small corporatesMiddle class customers Ginger

Summary of the Blue Ocean Strategy

Thank You