Taj Hotels Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: December 16, 2017
Marketing Strategy of Taj Hotels analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Taj Hotels marketing mix, help the brand succeed.
Taj Hotels marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Taj Hotels Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Taj Hotels Product Strategy:
The product strategy and mix in Taj Hotels marketing strategy can be explained as follows:
Taj Hotels is one of the leading hotel chain based out of India. The Taj Hotels brand consists of 90+ hotels and resorts in India and around the world as a part of its marketing mix product strategy. It has 80+ of them in India and 10+ in countries outside India like Singapore, Malaysia, USA, UK, Maldives, etc. While the brand was mainly into the hotel business, it forayed into various other areas later. Taj Hotels opened its first resort in 1974 at Fort Aguada, Goa. Around the same time, they tried an entirely different idea. They started converting Indian palaces to Hotels to give them an authentic royal touch. Some palaces which were included in the Taj Hotels were Lake Palace in Udaipur, Rambagh Palace in Jaipur, Falaknuma Palace in Hyderabad and Nadesar Palace in Varanasi. The hotels come under three main categories – Luxury, Business, and Leisure. Also, there are three names that the Taj Hotels operate under in India, namely Taj, Vivanta, and Gateway. The hotels live up the luxury status it has and it can be seen in the atmosphere on the premises, the services they offer, the amenities in the rooms, the common area.
Taj Hotels Price/Pricing Strategy:
Below is the pricing strategy in Taj Hotels marketing strategy:
Taj Hotels caters to a group of people who have refined and luxurious tastes in their travel and business.
These are the premier group of hotels aimed at providing an unmatched and unique experience to their guests. They are priced higher than the hotels in the same category. Taj Hotels are the market leaders in the sector and have gained a name worldwide. Their target customers include the upper middle class to upper-class individuals. The brand is known for luxury, excellence, quality, leisure and hence follow premium pricing strategy. The three sub-brands of Taj, namely Taj, Vivanta, and Gateway have different levels of service and luxury where Taj is the highest and Gateway being the lowest among the three. Taj is the flagship brand which provides the highest level of luxury service, Vivanta being the contemporary luxury brand and Gateway the mid-market brand. It is aimed at providing service to the upper strata of the society. It is just not the service that the brand charges you for but the experience.
Following is the distribution strategy in the Taj Hotels marketing mix:
In India, Taj Hotels are present in many states like Punjab, Maharashtra, Karnataka, Kerala, Tamil Nadu, Goa, Haryana, Andhra Pradesh, Uttar Pradesh, Rajasthan, West Bengal, Delhi, Madhya Pradesh, and Jammu & Kashmir. Outside the country, it is present in places like South Africa, Zambia, Bhutan, Malaysia, Maldives, Nepal, Sri Lanka, Dubai(UAE), UK, and the USA.
Taj Hotels started with building hotels in the metropolitan cities and with the expansion in business and the change in demographics and the tourism and hospitality market, it expanded its services in the secondary cities in India.
Taj Hotels Promotion & Advertising Strategy:
The promotional and advertising strategy in the Taj Hotels marketing strategy is as follows:
Since Taj Hotels are a luxury brand, it heavily relies on advocacy. Word of mouth publicity is what is of utmost importance and the customers tend to be loyal to the service. The promotion for the brand includes the prime locations of the Hotels, Resorts or Palaces. It always chooses the best amongst the lot and provides the best for their customer. Although there might not be many price slashes like the other ones in the sector, it has some price difference between the on and off-peak seasons. Taj Hotels have a membership for the group of Hotels and provides promotional offers to their loyal customers. They are also involved in TV advertisements, Direct Marketing and Social Media advertisements. It also provides training to individuals who are not well off.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Taj Hotels.
Taj Hotels provide the customer with an enriching and fulfilling experience. It provides its customers with several amenities during their stay and makes them comfortable during that time. There are many services on the premises which would take care of their luxury needs and satiate their leisure needs. There are spas, high-end restaurants, exquisite décor, and a top quality service.
Taj Hotels has a strong focus on its customers and employees. When providing a brand a service of this stature, it is very important to provide a good experience to its customers. People are given the utmost importance here for it is through them that your customers would enjoy their stay and wish to come again. People are trained extensively on their tenure and are made to learn rigorously throughout their course so as to gain perfection of service. There are various levels where the people will be placed under. There are Front Desk Staff, Managerial Staff, Technological staff, Concierge Staff, etc.
Taj Hotels has several processes which take care of its business. When the customer wants to book a hotel, he usually does it at the concierge or he does it beforehand through the official Taj Website where he would see a list of hotels. Then he chooses the preferred hotel and the room. When he reaches the hotel, he checks in into his room. The bell boy picks up the luggage and welcomes the guests. He will be provided with food every day based on what the package contains. He could order for in-room services or on-call services as and when he wishes. After the trip is over, he goes to the counter to checkout and pays the bill. During his stay, he judges the hotel based on these parameters and they should be taken into account to provide the customer with an unmatched and delightful experience. This completes the marketing mix of Taj Hotels.
About Taj Hotels:
Taj Hotels is one of India’s leading chains of luxurious Hotels. It was founded in the year 1903 by Jamsetji Tata, founder of Tata Group. It is not only present in India but has various chains internationally. It is a public company which is listed as Taj Hotels Palaces Resorts Safaris. It is originally named Indian Hotels Company Limited(IHCL) and Branded as Taj Hotels. It has its headquarter at Express Tower, Nariman Point, Mumbai. The group has 99 hotels around the world. The first Taj Hotel was opened at the Apollo Bandar, Colaba Mumbai. It is named as “The Taj Mahal Palace Hotel”. As the trading name suggests, Taj Hotels does not include just hotels but also includes resorts, palaces, and Safaris.
It provides impeccable and quality service and lives up to its status as a luxury brand amongst Hotels. The brand faces heavy competition from players like Hyatt, Oberoi and the like.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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