INDEX:

 Introduction:
1. IHCL
2. KHIL
 PESTEL Analysis:
1. IHCL
 POLITICAL
 ECONOMIC
 SOCIAL
 TECHNOLOGICAL
 ENVIRONMENTAL
 LEGAL

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2. KHIL

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 POLITICAL

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 ECONOMIC

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 SOCIAL
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 TECHNOLOGICAL
 ENVIRONMENTAL
 LEGAL
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 Differentiation:
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1. IHCL
2. KHIL
 Improvements to overcome obstacles
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 Bibliography
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Task 1

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 In this task, the researcher has been asked to prepare a report on the marketing
strategies of two Public Sector companies, SMEs or Charities for an economic
journal.

The companies chosen for this task belong to the food and beverage industry and
both the company have a commendable hold in their specified market. One of the
companies chosen is The Indian Hotels Company Limited, while the other is Kamat
Hotels India Limited.

Indian Hotels Company Limited:

The Indian Hotels Company Limited, better known as IHCL are popularly known as
Taj Hotels, Resorts and Palace. The Taj is one of the most reputed and biggest

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groups of hotels all over Asia with over 108 hotels in 63 premium locations. They

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also own a chain of hotels by name Ginger Hotels which has 25 hotels functional

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across India. Taj also has 17 international hotels in countries including USA, UK,

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Australia and Malaysia. IHCL was merged with Taj in year 1902, while they
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opened their biggest premium, luxury hotel in year 1903 with a name Taj Mahal
Palace and Towers. This property was later renovated and an adjacent tower was
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built, thereby increasing the number of rooms from 225 to 565.

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After completing their initial public offerings in year 1970, they got working on
their long term goals which included a chain of hotels around India and
specifically at most famous tourist destinations. All of the futuristic approach and
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strive to provide best quality services to their customers lead to the rise of the
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company as the leading hotel chain.

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Kamat Hotels India Limited:

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Kamat Hotels India Limited, as it is fondly called KHIL, is in true sense the hotel
with Indian hospitality. Kamat hotels are the new hospitality services in India who
operate with the name of KHIL. They are known for their well updated and
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modernized yet authentic Indian hospitality services and included hotels and
resorts in connect to the theme. One of their most famous and reputed projects
being Fort Jadhavgad, located in Pune which is a heritage hotel helping preserve
the heritage and history of India.

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 KHIL started with a beacon property called VITS which provided modern nomads
and business travelers a luxurious stay and true Indian hospitality.

They are extremely well-known for their environmental concern and have won
awards for same. Their hotels are eco friendly and are built and functional while
doing least damage to the environment.

KHIL has expanded to various locations including Pune, Nagpur, Ahmadabad,

Kolhapur, Surat etc. while circumspectly trying to apprehend the Indian hospitality
market by providing exceptional services in Indian sense of hospitality.

PESTEL Analysis of IHCL:

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PESTEL is an abbreviation for Political, Economic, Social, Technological,

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Environmental, and Legal. These are the factors on which the effect of external

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forces is determined on a business or a service. By knowing about these forces,

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the company can decide it’s opportunities and threats in the market.
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Political:

The tourism industry in India has seen a good growth in past half a decade and so
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has it seen a rise in the domestic travels. There had been a drop in the number of
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international travelers previously due to the terror attacks; however this was later
recovered by quick renovation of hotel and their strength of coming back with the
same uncompromised service to the customers. The Ministry of External Affairs’
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promotion has given rise to a good number of tourists visiting the country. There
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has been a rise of up to 55%-75% in the occupancy rates in past 3 years. IHCL has
taken care of abiding by all the government norms and regulations, and have been
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a constant supporter of government activities.

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Social:

Taj groups are one of the Best Top 10 Luxurious hotels in the world awarded by
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Forbes Magazine. It was awarded as the best hotel in India by China and was the
only Indian hotel to be among Top 3 Best Overseas Hotels in Business Hotels
Category. It has built it’s reputation by providing best in class services with no
compromise to guests all over the world.

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 Economic:

IHCL owns 500 acres of land to it’s credit which was acquired over a period of time
and thus carries a major value in terms of an option for creation of liquidation.
The property owns few of the most rare assets and paintings which are valued
over millions. The services and amenities provided by the hotel make guests
vulnerable and thus company can charge efficiently for the same. They charge for
the premium services they provide at most exotic locations in the country.

Technological:

The company spends over 200 cr. over updating and use of latest technology while
opening a new property. The technology in the current properties is efficiently

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managed and used for reservations, inventory management and staff

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management purposes. Use of technology for guests is also efficiently being

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made.

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Legal:

IHCL works under all the legal prohibitions set by the government as well as
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contributes to the government initiatives. They are set to launch 41 new projects
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which will be a benchmark in the global sustainability and social responsibility.

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The company has been making necessary updates in their licenses for food quality
and services approval.
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KHIL PESTEL Analysis:

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Political:
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Growth in tourism industry has lead to a rise a rise in the hospitality service
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providers. However, KHIL has been one of the most Indian of them by keeping
their services authentic. Also they have good backing of political powers due to
their recent project of reviving the heritage of Indian history at Jadhavgad.
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The Indian hospitality industry has a problem growing up due to extremely high
taxes set by the government on hotels with a star rating or those which come
under the luxury category. The hotels are therefore trying to achieve more tourists

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 and visitors to keep the business going. KHIL has however been contributing to the
government initiatives and helping for the betterment of society and environment
equally with the help of government movements.

KHIL also has two lease agreements with the Orissa Tourism Department for their
projects Mahodadi Niwas at Puri and Eco Resort at Ramchandi.

Economic:

KHIL hotels are very strategically placed and are found particularly on long route
expressways, hill stations and tourist destinations. Their luxury properties like
Orchid and VITS are found specifically near airports since the premium audience is
easily achieved there. To their credit and great diversification, they recently made

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a word in the hospitality sector by successfully working on and launching their

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heritage property Fort Jadhavgad in Pune which incurred a lot of expense, the

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hotel is doing a wonderful business and giving guests one of it’s kind experience,

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thus recovering the costs. rs e
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They have expanded their luxury hotels to cities like Nagpur, Kolhapur, Pune,
Orissa etc. they also have immovable property at Raipur, Baddi, Amravati,
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Coimbatore, Kottyam for hotel purpose. These are the places they have forecasted
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tourism business to expand with a great potential.

Social:
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They are a hotel known for their authentic Indian hospitality in nooks and corners
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of the country, yet providing the exceptional quality food and staying facility. They
are truly a brand dedicated to their customers and work absolutely with their
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orientation in mind. Hotels and defined as ‘Home away from home’, KHIL has
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proven the statement true to a great extent by providing services like no other.

Technological:
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The hotel uses technology to keep a tract of reservations, staff management and
inventory. However, KHIL has not considered use of technology beyond it’s general
uses.

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 Environmental:

KHIL is one of the brands completely dedicated to protection of environment and

all of it’s properties are built after environment impact assessment to maintain
harmony with nature.

Their services are devised so as to make least or no damage to the environment.

They also have an eco-resort at Ramchandi in Orissa near Konark Temple.

Legal:

The management has made sure to follow the entire registration process staying
in the suit of law. All the brands working under KHIL have been patented and the

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rights rest with the management.

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Differentiation:

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IHCL:
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Taj group hotels are known as ‘Heritage Grand’ five star hotels for their luxurious
hospitality still keeping up with the hold of local heritage and environment of a
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place. The company has surpassed their competitors on all possible grounds taken
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from providing impeccable service to holding various CSR activities like cleanliness
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drives for hygiene awareness and AIDS awareness events. These all have added to
their credibility and respect.
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KHIL:
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KHIL is known more for its premium and semi-premium hotels, homely stay and
Indian heart. They are mainly focused and known for their efforts to provide
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exceptional service while protecting environment to the fullest. The budget hotels
and premium hotels faced a stressful period a few years back due to their
operational issues and having fallen against their competitors.

Improvements to overcome obstacles:

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 According to analysts, a country which is stable, attracts more tourism and thus
creates a better business for the hospitality sector. This is forecasted for India by
2022. However, analysts also have mentioned that, India lacks the number of
rooms required once the tourism sector takes a leap.

IHCL has their properties in USA and UK on which they will be working and
refurbishing them to enhanced standards, as well as emphasizing on the
development of Ginger hotels in India.

KHIL would require emphasizing on have having more properties at leading tourist
locations and near airports, with more rooms made available. Expanding specific
properties in one particular direction based to the ones with highest sale (Orchid

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and VITS) will help them earn major revenues from particular sources and the

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inflow would remain from other smaller sources at the same time.

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According to reports by analysts, both the hotels would have to double the

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number of rooms they have right now.
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Bibliography:
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Indian Hotels Company Limited information:

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Available on: http://www.tata.com/company/profile/Indian-Hotels

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IHCL work culture information (analyzed from):

Available on: https://economictimes.indiatimes.com/industry/services/hotels-/-

restaurants/ihcl-brings-all-its-hotels-under-single-
brand/articleshow/57066275.cms

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 Kamat Hotels India Limited information:

Available on: http://www.khil.com/who-we-are/about-us.html

New project information for IHCL:

Available on: http://indiacsr.in/taj-group-recognized-for-its-environment-and-

social-responsibility-initiatives/

KHIL company financial statistics:

Available on: https://economictimes.indiatimes.com/kamat-hotels-india-

ltd/stocks/companyid-8642.cms and
https://www.moneyworks4me.com/indianstocks/small-cap/travel-

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hospitality/hotel-resort-restaurants/kamat-hotels-india/company-info

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IHCL recent news:

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Available on: https://economictimes.indiatimes.com/industry/services/hotels-/-
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restaurants/ihcl-brings-all-its-hotels-under-single-
brand/articleshow/57066275.cms
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