Ginger Hotels

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GINGER HOTELS:
PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS
(In assistance with Dr. Avinash Kapoor)

BY:
ROHIT SHARMA 11P161

S.P. KALYAN 11P162

SANCHIT VERMA 11P163

SAURABH MANDHANYA 11P164

No. of words: 7029 SHAFALI SUBRAMANIAN 11P165 EXECUTIVE SUMMARY

Our study has been conducted on the ‘Pricing strategies employed by Ginger Hotels, India and their effectiveness’ in order to identify the different pricing method that are implemented by Ginger Hotels and study their differentiating factors with regard to the other players in the hospitality sector. We further attempt to establish if these pricing methods bring the customers to satisfaction. This is how we measure the effectiveness of the pricing techniques. The Indian hospitality sector encompasses many different services. These include lodging, restaurants, event planning, tourism etc. Among these, Ginger Hotels focuses primarily on lodging. Ginger Hotels is a Tata Enterprise, which differentiates itself from the rest of the Tata Group Hotels by being a ‘Smart Basics Hotel’. Their prime focus is on providing key facilities that meet the key needs of the customer. This model enables them to maintain economic rates, thus making them a low cost budget hotel. The different players in this budget hotel segment implement a competitive pricing methodology. Apart from this Ginger uses other pricing techniques to attract their target markets. These pricing methodologies are also used to increase the customer lifetime value. Our analysis starts with a study of the different price strategies commonly used in the services and hospitality sector. These include competition-driven pricing, customer-driven pricing, price-ending strategy, yield pricing and dynamic pricing. Our hypotheses attempts at establishing that, in the case of budget hotels such as Ginger Hotels, among the ‘four P’s’ (Product, Place, Price, Promotion) Price is in fact the force which contributes mightily in bringing in the customers and ultimately to the success business success. An attempt is also made to understand if in the case of budget hotels such as Ginger Hotels, the customer is looking more for her/his delight needs to be satisfied or focuses on the key real needs. We also move this ahead and try to determine the extent to which the pricing strategy implemented by Ginger Hotels affects their customer’s value perception. Through our primary and secondary research findings we were able to conclude that for Ginger Hotels, price and pricing strategies employed were infact the key sales driver in comparison to the other P’s of the marketing mix. Hence, the strategy employed by Ginger to provide several different price options and implement several pricing strategies was indeed an effective technique. Another interesting finding was that from the customer point of view, for the price they paid for services and lodging at Ginger Hotels, they were more focussed on their real needs being satisfied and the expectation of delight needs being fulfilled weren’t high. Thus, Ginger needn’t divert large resources at satisfying their customer delight need as there is no demand for that yet. The customer’s value perception, that we calculated, lets us assess how satisfied the customer is with the services being provided at Ginger Hotels. In a competition-driven pricing method it’s mandatory to establish the value perception your customers have of the services you provide, in order to maintain your market share. The research findings and analysis from this report can be used by Ginger Hotels in order to spot their shortcomings with regard to their customer’s needs and wants. The study can further be extrapolated to any new entrants in the same segment.

TABLE OF CONTENTS
1. INTRODUCTION
i. Objectives
ii. Justification
iii. Significance
iv. Ginger Hotels -Company Introduction
v. SWOT Analysis
2. LITERATURE...
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