Oberoi Hotels Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: December 31, 2017

Marketing Strategy of Oberoi 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 Oberoi Hotels marketing mix, help the brand succeed.

Oberoi Hotels marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Oberoi Hotels Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Oberoi Hotels Product Strategy:

The product strategy and mix in Oberoi Hotels marketing strategy can be explained as follows:

Oberoi hotels is one of the most premium hotel chain based out of India. The company has several service offerings in its marketing mix product strategy. The Oberoi Palace Hotel in Srinagar, Kashmir was introduced by leasing Maharaja’s palace and converting it into a hotel in 1956. After that the company started its flight services in 1957. The first hotel, the Oberoi Intercontinental, now known as The Oberoi, was built in New Delhi, in 1965. In 1973, operations at the Oberoi Towers in Mumbai started. The brand started with its own printing press for in Delhi for in-house needs. The Oberoi made a subsequent entry in the airport services business by entering into a ten year contract with the International Airport’s Authority to operate all the snack bars and restaurants at the domestic and international terminals in Mumbai. In 1997, The Oberoi Rajvilas, the first premier leisure hotel targeting the high - income international and domestic leisure traveller was commenced in Jaipur. Between 1986 and 2009, nine hotels were re-branded as Trident Hilton after the Company entered into an alliance with Hilton International for international marketing in 2004. This made them enter from the five-star deluxe segments to Trident hotel chains which targeted business and leisure seeking for high high-quality service at more affordable prices. Three new hotels, The Oberoi Vanyavilas in Ranthamhore, Rajasthan, The Oberoi Amarvilas in Agra, Uttar Pradesh and Wildflower Hall Shimla, Himachal Pradesh in 2001. The Oberoi Udayvilas in Udaipur, Rajasthan was commenced in 2002. The Oberoi Hotels provide serene surroundings, relaxed atmosphere, luxurious rooms and legendary service. A stay at Oberoi Hotels promises all of these benefits and more. Be it Infrastructure, services, cuisine or facilities are at par with international standards. The Oberoi hotels provide exotic vacations offer which includes accommodation, breakfast, airport transfers and taxes. All other experiences like sightseeing tours, spa therapies, meals and domestic air travel or road transfers are also provided. Each Oberoi Hotel offers an authentic and unique perspective of every city to its customers. It is in the form of exquisite regional cuisine, historic landmarks and the rich history of the place.


Image: Wikimedia


Oberoi Hotels Price/Pricing Strategy:

Below is the pricing strategy in Oberoi Hotels marketing strategy:

Oberoi Hotels have as its potential customers.

Being placed in the premium section targeting high end segment of the society, the Oberoi Hotels attracts targeted big multinational companies, high income section of the society and urban travelers high purchasing power. The band follows premium pricing strategy where the customers are ready to pay to get the quality services as per their needs. The hotel provides luxurious and first class to its esteemed customers. The hotel provides several types of accommodations with different facilities and services which are priced accordingly. The USP of the Oberoi Hotel is the rich and luxurious experience that it offers the best experience ever.


Oberoi Hotels Place & Distribution Strategy:

Following is the distribution strategy in the Oberoi Hotels marketing mix:

Though Oberoi Hotels started their operations from India but gradually they have made their international presence by spreading to several countries. The headquarter is based in New Delhi in India. Its hotels in India are located at strategic and convenient places in major cities like Agra, Jaipur, Udaipur, Shimla, Ranthambore, Chandigarh, New Delhi, Mumbai, Kolkata, Kerala, Gurgaon and Bengaluru. At international front, Oberoi hotels are present at Lombok and Bali in Indonesia, Al Zorah and Dubai in UAE, Mauritius in Mauritius, Sahl Hasheesh and Nile Cruiser in Egypt and Madina in Saudi Arabia. The Oberoi’s have a future plan of introducing a new hotel in Marrakech in Morocco.

The places opted by the Oberoi Hotels are of great significance like heritage sites and places with some historic monuments to attract more number of tourists.


Oberoi Hotels Promotion & Advertising Strategy:

The promotional and advertising strategy in the Oberoi Hotels marketing strategy is as follows:

The Oberoi Hotels have adopted several promotional policies to create the brand awareness. Their primary focus for promoting the brand has always been the use of mass communication mediums. They have launched various print campaigns via magazines, newspaper etc. for the same. Also, social media platforms like official Facebook account , Twitter and Instagram handles, YouTube channels and official website has been very active in promoting the brand by sharing customer experiences. Their publicity largely depends upon the mouth of word promotion as the customers by themselves share their experience on various portals like travel and tourism portals and recommending the experience to other potential customers. The Oberoi Hotels have received many global awards as well like Best Hotel Group by the readers of The Telegraph, UK, 2017, Asia's Leading Luxury Hotel Brand in the 2017 World Travel Awards and World's Best Hotel Brand for the second consecutive year by the readers' of Travel + Leisure in 2016 World's Best Awards etc. to name a few. This has also helped them to create a positive brand image and attract more customers.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Oberoi Hotels.


People:

Being in the hospitality sector, service is the most important thing. The Oberoi Hotels has an efficient and multi-talented workforce which offers the world class service to its customers. The Oberoi Hotels have their own Centre for Learning and Development (OCLD) which is based in Delhi. OCLD offers a two year post graduate management programme in Guest Service Management, Housekeeping Management and Kitchen Management. On completion of the post-graduation degree, the Oberoi Hotels give an opportunity to the students to join the Oberoi Group directly at managerial role. The course provides a combination of academics and on-the-job training with an opportunity to work with The Oberoi Group of hotels. The resources hired by the Oberoi’s are highly professional and trained and believes in providing required assistance to its customers. All the regional experience provided by the Hotel is done with the help of the particular sector specialists. The experienced travel specialists are available to assist all the customers in arranging for their transportation and knowing the place in a better way.


Process:

The Oberoi Hotels provide one of the best services and management practices among the world class hotel chains. They provide consistent and well managed services to their customers to maintain the customer loyalty. Booking of the hotels for various occasions be it vocational trip, corporate trip or any life events like marriage, parties etc. can be done via online mode. This service is being provided by various hotel booking portals as well as the Oberoi Hotel’s official website.


Physical Evidence:

The Oberoi group has a vast range of hotels and resorts in different parts of India as well as abroad. Along with great services, the Hotel’s also provide various daily use products like toiletries, notepads and pens etc. which are customized with the Oberoi Hotel’s logo on them. The hotel also provides all the other requirements like payment slips, promotional brochure describing all the offerings to its customers. This completes the marketing mix of Oberoi hotels.


About Oberoi Hotels:

The Oberoi group was founded by late Rai Bahadur Mohan Singh in 1934.

The first Oberoi Hotel came into existence by converting Maharaja’s palace in Srinagar and converted it into “The Oberoi Palace Hotel”. Since then the Oberoi Hotel chain is growing, marking a luxurious mark at each step.

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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