hw2-255 - P a g e |1

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P a g e | 1 Our objective in writing this paper is to evaluate the design of Taj Hotels’ new budget hotel brand, Ginger, and provide recommendations to Taj Hotels about to improve and compete in the new brand’s respective market. In this paper, we will present and discuss Ginger’s respective target market segments, analyze their competition, discuss management requirements for Taj in owning and operating a budget hotel brand, and we will provide appropriate recommendations for moving forward with this new brand. Market Segments Ginger Hotels primarily target the business and leisure market. Closely looking at pictures on Ginger’s official website, one will notice the economical chairs in the dining area, the sparse furnishings of the conference rooms, and the Spartan furniture in the guest rooms, all which leads us reasonably infer that the financial target market of Ginger Hotels is the economically conscious and lower budgeted customer. Ginger’s location in India also plays a significant role in determining who Ginger targets and should cater to. Who is Ginger’s Target Market? All of the Ginger branded properties are located close to transportation centers, business districts (the Tirupur and Durgapur properties are just two examples), and tourist destinations (Maharashtra is great example given its proximity to the pilgrimage Shirdi). 1 Given this information we can conclude Ginger’s target market consists primarily of young leisure and business travelers. Considering hotel size and facilities provided we can also conclude Ginger does not actively target the group market. Leisure Market The SmartBasics concept Ginger has incorporated into its hotels provides leisure guests with the simplicity (no-frills) and low price they are looking for. These travelers are willing to make some sacrifices for a lower price, such as no room service, no bellhop, no swimming pools, and self check-in. Ginger excludes all of these services as part of their 1 www.gingerhotels.com Subramanian, Shobhana, All about the low-cost Ginger hotels , July 24, 2007, www.rediff.com/money/2007/jul/24ginger.htm
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P a g e | 2 strategic plan to lower costs and room rate, while providing self-service amenities comparable to those they exclude. Guests’ needs are relatively basic – a bed to sleep in, a hot meal, internet, as well as other amenities expected of a three-star hotel. The low price per night is an inference to potential guests on what to expect during their stay, but Ginger tries to go beyond this expectation by providing guests with high-end facilities compared to facilities in other budget hotels. Business Market The close proximity of Ginger Hotels to demand generators for business activity, including many information technology parks, suggests that along with budget conscious travelers, Ginger is also targeting business travelers. The small yet useful meeting space Ginger offers further demonstrates that the hotel chain targets business travelers. Discussion on how Ginger may see increases in their business segment will be discussed
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This note was uploaded on 04/08/2009 for the course HADM 255 taught by Professor Robson during the Fall '08 term at Cornell University (Engineering School).

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hw2-255 - P a g e |1

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