Relationship Marketing in a Global Market Place - Assignment Example

Running Head: Recycling in the hospitality Recycling in the hospitality industry can make a significant impact on waste reduction 'f the writer] [Name 'f the institution] Recycling in the hospitality industry can make a significant impact on waste reduction Chapter 1 - Introduction Relationship marketing We live in a developing world where our economies as growing at an increasingly fast pace. There is free movement and trade all over the world. Over the years, the world has become a global market place. This is the prime reason as to why the concept 'f 'relationship marketing' was brought about. The focus is no more on selling ones products and services, but to build long term beneficial relationships with anyone who is important to your business. "Relationship marketing is to establish, maintain, enhance and commercialise customer relationships so that the objectives 'f the parties involved are met. This is done by a mutual exchange and fulfilment 'f promises." [1] There has been a very notable change in the concept 'f using traditional transactional marketing to building and maintaining relationships. This assignment talks about relationship and direct marketing and how it is used in today's world. To make things comprehensible, a company was chosen and the focus was made on this company and their dealings. The Taj group 'f hotels-introduction Jamsetji Nusserwanji Tata, the founder 'f the Tata Group, incorporated the Indian Hotels Company Limited (IHCL) on April 1, 1902, for the ownership and operation 'f the Taj Mahal Hotel, Mumbai. The Taj Group's first hotel, The Taj Mahal Palace & Tower, Mumbai was opened on December 16, 1903. The Rs. 68700 Million Company currently operates the Taj hotels, palaces and resorts, and has grown to become the largest hotel chain in India. [2] The Taj has had momentous innings spanning the last three decades both in India and overseas and has established itself as the premier hospitality body in this country. Indian Hotels' presence spans the entire gamut 'f the market, across different brands and price segments. It is renowned for providing world-class, personalized service to guests, even as it retains an old-world charm by upholding the traditions and heritage 'f India. Today the Taj brand is synonymous with luxury and service, in India and abroad. Chapter 2 - The Customer The Taj brand is divided into 3 categories, namely business, leisure and luxury. This is done to make things easier and more approachable for a customer. All these hotels use product differentiation. This is made evident and clear through their marketing activities. However, the services offered here are the same. Each type 'f category uses a set 'f procedures and policies to maintain relationship marketing. The focus at IHCL is on customer valuation, which then leads to attracting new customers and customer retention. The Taj believes in maintaining customer relationships. As shown in the value chain earlier, Taj has two main customers. This is her guest and the Travel agencies that she deals with. A customer is valued and identified by market research. He is then attracted with schemes and programs. Once a customer is attracted and starts using Taj services, a focus is made on building a strong and special relationship with him. Taj has an alliance with Thomas Cook. This is the main travel agency, which promotes Taj. Besides Thomas cook, there are hundreds 'f travel agencies which deal with Taj. These range from the biggest agencies in India like the travel corporation 'f India and Sita Travels to the smaller agencies all over the country. Taj has won international acclaim by winning various international awards. Recently, at the 2000 Selling Long-Haul magazine Travel Industry Awards, UK and Irish travel agents have awarded Taj Hotels as the Best Individual Hotel/Hotel Group in India/Indian Ocean. The travel agencies are offered discounts, schemes, promotions and packages, which they can further sell, to the customers. It also has alliances with a few airlines like Delta, Singapore airline etc. that allows the customer to earn sky miles by staying at the Taj. The Taj has bookers parties, for travel agents, group promoters and national bodies like the tourism board, IATA(All India tourism association) etc. The first day onwards when a guest checks into the Taj, a guest relationship manager or his executives meet with the guest for tea when it is convenient to him. At this meeting, the executive talks to the guest and notes all relevant information about him. If he is a corporate guest, previous information about the guest may have been obtained from his company. Then onwards, the Taj is constantly communicating with the guest. When he comes the next time, the room is customised to his likes. All the amenities, which he prefers, are laid down. When he enters the room, His favourite T.V channel is turned on and his favourite drink is placed for him. On all occasions, like birthdays, anniversaries, New Year and festivals, a card or email is sent to the customer with greeting. A system called GSTS, which is a guest satisfaction tracking system, is maintained. Here, from time to time, the guest is asked to fill a questionnaire. This is done at an individual hotel level .All the information collected by guests is then fed into a software which points out the areas where improvement is needed. Measures are taken to implement the new changes so that the hotels are constantly improving. Taj has created databases 'f customers' history-on stay information and profile, which is on a centralized server connected to each 'f the locations. Each time a frequent traveler checks in, the profile pops up at the reception desk with multilevel information and the hotel is ready to take care 'f the customer's needs and choices. After extensive research on today's customer needs conducted by Taj, it was found that today's consumers wanted more exclusivity. The Taj had a traditionalist image and did not attract that kind 'f consumer. To rise above this image, Taj introduced The Taj Club as an executive floor in luxury hotels. This floor only caters to high class and professional customers. Levels 'f service and food at most major hotels in India are the same. What differentiates Taj is that at-home feeling. Taj is now looking at redefining its hospitality and customer services on the basis 'f Maslow's hierarchy 'f needs. It is revamping all its 23 business hotels based on the feedback from an internal research from their guests and employees. In order to meet customers demand for creation 'f a better atmosphere besides service, Taj had instituted studies 'f nightclubs and discos 'f the US and Europe. But while the Taj group is moving up the value chain, it will certainly be priced at a premium. [9] Internal market: Employees- The 'do'-ers Taj's success can be summed up in just one word: People. The People in the Company and People outside. These are their dedicated employees and loyal guests. It is the commitment and dedication 'f The Taj team and long-standing patronage 'f their guests in both good times as well as bad that has made all the difference. The Employee at Taj is viewed as an asset and is the real "Profit Centre". Taj believes that he is the very reason for their survival. The creation 'f the Taj People Philosophy amply displays their commitment to and belief in their people. [11] Talent Management is seen as the most important sustainable competitive advantage The Human Resource function here has therefore evolved around this principle and is moving from being a support function to that 'f a critical business partner. They believe that every employee has the potential to make a successful, long-term career within the company, upholding the true values that have been the foundation for the phenomenal growth 'f the Taj Group. [12] It is made sure at the Taj that the employees are looked after and satisfied. A system called ESTS (employee satisfaction tracking survey) is carried out from time to time. To begin with, the employees fill questionnaires. Then the general manager 'f every property meets with the staff in a hall 'f the hotel, where very employee has the right to come and talk about his grievances. There is a town hall meeting every three months with the HR manager and the department heads to clarify all problems in the hotels. All the feedback collected from ESTS and these meetings is then revised and a team 'f experts from the main human resource department comes about with changes in systems, policies and procedures so that the employee is satisfied. There are also other measures taken such as the sexual harassment policy and other such policies where strong measures are taken to take action in any such activity. A hotel counselor is available 2 days 'f the week and an employee can make a personal appointment to meet with him. A suggestion box is placed so that anyone can put in any grievances and suggestions. This box is opened every month and suggestions are put into action. There is community and social activities carried out in each hotel an annual day is held, where all employees get together and put together a dance and drama show for one evening. This is followed by an extensive dinner. There are outings on children's day so that the employees can go out together with their families and share. There are also departmental outings. A birthday list is put up in the cafeteria so that everyone is aware 'f one others birthdays .the employee is also sent a birthday card on his birthday and he can avail a discount on purchasing a cake. Late night buses run to every area, in which an employee can travel for free, so that employees do don't suffer any safety issues while traveling at night. A hotel doctor is available at all times in case 'f any injury. [13] Taj is the first company in the Tata Group to undertake the HR 'balanced scorecard', which links individual performance with company strategy. The main highlight 'f employee relationship at the Taj is the STARS program. The program allows employees to win points (at the recommendation 'f a colleague or a guest). This gives them access to different levels 'f standing that go hand-in-hand with specific rewards. In addition, employees are strongly encouraged to make suggestions and recommend innovations that may be applied to the group as a whole. Accumulation 'f points enables an employee to pin a star on his lapel. More points gets him into exclusive clubs that can fetch him gift vouchers, cash prizes and holidays in a Taj hotel 'f his choice. The winners in the program are honored at an Oscars-style ceremony in the Taj, Mumbai. Clips about the winners were screened and the managing director gave away the awards. This served as a huge morale-booster across the group. Chapter 3 - Direct marketing Attracting new customers As mentioned earlier, Taj has does a good job in maintaining relationships. Once the customer is found and stays with the Taj, strong measures are taken in maintaining relationships with them. However, Taj has not been successful in attracting new customers. As the company has a strong referral and influence market, they attract new customers. Although customers are attracted due to these reasons, there is still a lack 'f any communication or efforts made by the company to attract potential customers. Adding direct marketing as a resource in customer accusation would prove very beneficial. Although Taj has strong marketing plans, it is still necessary to incorporate new strategies .in order to achieve better customer accusation results, the following recommendations can be used. Recommendations - The most important feature 'f direct marketing is to have a strong database. To build a date base for new or potential clients, Taj can begin with using a registration login on its site to encourage customers to sign up to access information. The registration should begin with a small form, which would ask all personal details 'f the customer. - Competitions, quizzes and offers can be run on their website which would require registering as well. - Information on prospective clients can be made through companies. Taj already makes sales calls in person to companies to market their services. More information can be obtained through referrals 'f those companies and their clients. - Customer information can be obtained from travel sites, which require registering to access travel information. - Such information can be obtained from restaurant and food sites, which also has registered members. - After the potential customer information is collected, the company can approach them directly though email or letters and attract them to stay or dine with the Taj. If cost permits, interactive CD's can be sent along with the letter, which has all information or various Taj locations, hotels and resorts and their offers. Introductory offers can also be given to the potential customers. Bibliography Brown, M (1996). Environmental policy in the hotel sector: "green" strategy or stratagem' International Journal 'f Contemporary Hospitality Management. 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