Indian Hotel Industry - Launch of 'indiOne'

            


Details

Case Code : CLSM011
Publication date : 2005
Subject : Services Marketing
Industry : Tourism, Travel and Hospitality
Length : 05 Pages
Price : Rs. 100

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Key words:

C.K.Prahalad, Indian Hotel Company Limited (IHCL), Raymond N Bickson, Budget Hotels, Indione, Top-Down Approach, Bottom-Up Approach, McKinsey, Customer Needs, Roots Corporation, Project Business Plan, Sheila Nair, Business Travelers, Chlorophyll, Smart Basics, Sales & Marketing Costs, Brand Name, Direct Marketing

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.


 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

Indian Hotel Company Limited (IHCL), the leading Indian hospitality concern, has joined hands with C.K.Prahalad to launch indiOne, a new concept that will redefine the hotel industry and provide the company with a new growth opportunity. The caselet outlines the reasons for IHCL's entry into the budget hotels segment and provides details on the indiOne concept. Further, the caselet explains the design and implementation of the concept. It discusses the implementation challenges and the future plans of IHCL for this venture.

Issues:

  » Budget hotels and its viability in Indian hospitality market.
  » New product development in hospitality industry.
  » Importance of segmentation and targeting in hospitality services.

Introduction

Leading management thinker, C.K.Prahalad, took a sabbatical from his busy academic work and spent nearly two years in India, not for writing a book on his favorite subject -- mass marketing -- but to launch a new mass marketing concept in the hotel industry called indiOne.

Indian Hotel Company Limited (IHCL), the leading Indian hospitality concern, has joined hands with C.K.Prahalad to launch indiOne, a new concept that will redefine the hotel industry and provide the company with a new growth opportunity. In 2001, the company was in a poor shape with a decline in revenues largely due to recession and a decline in foreign tourist arrivals after the 9/11 attacks...

Questions for Discussion:

1. IHCL took two years to develop the indiOne concept, with a dedicated team under the guidance of C.K.Prahalad. Discuss the new product development process involved in the creation of indiOne, a budget chain of hotels.

2. IHCL is known for its luxurious Taj group of hotels. However, it has forayed into the relatively unknown territory of budget hotels that requires careful planning and cost control to be profitable. How far do you think IHCL has succeeded in making this venture profitable?


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