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.

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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.

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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.

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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.

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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

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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.

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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

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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.

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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.’

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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.

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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.

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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.

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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.

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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.

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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.

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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.’

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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.

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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.

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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.

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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.

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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.

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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!

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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.

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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.

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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.

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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.

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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.

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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!

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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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