Page 262 - DMGT408DMGT203_Marketing Management

Unit 11: Marketing Communication Tools (Promotion Mix)

As far back as 1990s, it was realised that formal market research was must to help understand Notes
the consumer better. Though it always had access to research done by independent research
agencies, such as the airline and travel industry, it was about seven to eight years since, the
group had 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/he wish to be pampered? The findings revealed that the customer
would like exclusivity, more than anything else. On the other hand, research also indicated
that the company’s existing consumer base of traditionalists – those who liked the Taj
because it was understated, yet classy – was shrinking.
By the mid 1990s, the renovation was in full swing. Units across the country were refurbished.
It meant overhauling entire floors. Rooms were revamped, business centres rebuilt. More
than a handful million dollars were reportedly spent on renovation – just in the lifestyle
(luxury segment)! It was anticipated that the business was likely to become big (and those
using it were likely to be non-traditionalists) and the Taj went ostentatious with its new
business floors. It meant putting in optic fibre cabling, remote control systems and giving
the business guy a lounge where he could relax and even have breakfast. It included a
mini-business centre too.

Initially, fax machines were installed in the rooms and later Internet and laptops. Not only
mobiles were provided on hire, the Taj dropped communication charges by 33 per cent.
It was only when the product was ready, was a major advertising campaign developed.
Earlier, the advertising had been restricted to the major feeder markets; the US, UK,
Germany, Singapore, and Hong Kong and the advertising emphasised hardware aspects
of the hotel. The new campaign developed a specific brand identity for the hotel. It also
marked out three separate entities that the Taj Group comprises – Business, Leisure, and
Luxury.
Though the concept of these sub-brands had come into existence five years ago, today,
they are operationally different. Which means that though the heads of these three divisions
sit at head office, their ‘territory’ is scattered geographically.
There are other changes. Unprofitable ventures were hived off. The sales and marketing
functions were separated. The HRD department modernised, with emphasis on
performance and career succession planning. The organisation was made flatter and more
compact. Moreover, a continual benchmarking against international standards was made
part and parcel of the culture of the Taj.

More emphasis was placed on business segment, as the profits are higher here (it being
less price-sensitive comparing to luxury segment). In the business segment, 17 new cities,
and towns will soon have the Taj Presidency hotels, also, new properties will come up in
Goa, and Jodhpur and one is stated to come up near Sahara airport in Mumbai. The group
has also acquired Hotel Blue Diamond in Pune.
Though, the Taj has a high un-aided recall, it has launched a corporate campaign to reinforce
its new identity. The ad (made by Rediffusion) shows the Taj symbolised by an enigmatic
woman who stands for both hospitality and efficiency. This identity was developed after
extensive research on the consumer’s attitude towards the Taj. Over 60 in-depth interviews
were conducted in the metros by client agency. The parameters were based not on quantity
but quality. The focus of research was on things that go into creating images of wonderful
hospitality, such as the quality of check-in, the smile, the greeting, or the welcome drink etc.
The insights gathered were analysed extensively and a cleat slot, which the Taj could
occupy when global competition arrived, emerged. The slot was an emotional one. This
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