SWOT analysis of ananda himalayas

SWOT analysis of ananda himalayasAnanda Himalayas is a trend setting concept in two melodic phrase and luxurious spa.ananda Himalayas is a purpose of IHHR Hospitality owened by Mr Ashok Khanna.It is a luxurious spa situated in the tranquil Himalayan foothills,nested on a ampere-second acres e defer surrounded by graceful Sal forests overlooking the river Ganges,close to the towns of Rishikesh Haridwar.Ananda Himalayas was established in 2000 its Indias graduation destination spa.it is a pathway to the ultimate,discovered through the union of personify,mind soul.it provides a breathless redefine lifestyles with the long-familiar traditional Indian wellness regime of Ayurveda,yoga and Vedanta.IT is considered to be atomic number 53 of the best spa in the realism and also rated no.1 destination spa in the world by most of the travel agent as well as unfermentedspapers magazines(Travel and empty).Ranked by top new hotels of 2008by Conde nest traveller,76 hot spasacross globe by travel leisure and 26 best business hotels in South ASIA.Swot analysisStrengths-Location- situated in the green lush of Himalayas with internal flora and fauna.Heritage propertySpa- the only hotel with 21,000sq feet spa and first spa hotel in the country.Cuisine-food prep ared is contrary from routine prepa balancen and individu in ally intentional as per the body type and cooked without oil.Weakness-Cost- elbow manners are extremely expensive and not suited to home(prenominal) traveller.Limitations-hotel in the first place scissures spa and wellness packages ,limited to a less percentage of the society.Opportunities-Govt support- attract touring cars with new promotional schemes which results in high outbound tourists.Common wealth games- as games to be held in 2010,will be a boom for the industry. air hospitality- both with joint venture encourages in increasing travellers by offering cheap packages.Threats-RecessionCompetitors-many junior-grade hotels ope ned near about with cheap yoga n spa packages and it can reduce the rate of visitors to ananda. congenital hazards-like fire,flood etc.Cheap airlines packages- guest want to go international subsequently international air fair locomote down.Political issues-like good tax,labour union policies etc.Key-findings for Ananda Himalayas-biggest strength of Ananda Himalayas right now is its brand reputation be only spa in India(which is 50%)although it has to improve on weaknesses and less harvest-feastivity than its competitors.At the identical time,can increase the sale or mkt share with an increase in number of pack who want relief and better health(as it is health and wellness industry).Mission and Vision StatementMission-to create a singular design crossingoffer world class hospitality with a distinctive warmth and humblenessimprove and innovate constantlyto crate exceptional value for people,their individuality and to their growthVISION-to be a world-class hospitality chain in Indiabenchmark in spa industryto remove a world-class spa institute in Indiaexpending capacity of existing property as well as expending with more new properties.Ethos-E-empathyT-team maneuverH-h iodinstyO-ownershipS-selflessness bodily objectives-Increasing revenue from 500 m to 550.75 m.Reaching to 100% node satisfaction instead of 8.3 to 9.3%.Tar ingesting acquire from 45.64 to 58.42Taking gross gain ground ratio to 12-15%.Mktg Objectives -Increasing revenue from 50% to 100%Achieving customer satisfaction and quality standards to 100%Increasing profit from 80% to 100%Increasing growth profit ratio from 12% to 15%(CIRRUS 01 SEP 2008).Mkt section- foodstuff Segmentation broadly identifies the potential grocery stores from a general population for that refining and targeting. The foodstuff segmentation for ananda Himalayas will be crop on the two bases.1.geographic segmentation (it will contain both international and domestic markets)2.demographic segmentation.Geograph ical SegmentationCountry of Origin of Guests in Rishikesh lead hotelsCOMPOSITION quintet Star Deluxe and Five Star hotel%ASEAN2.4Australia2.1Canada1.6Carribbean0.6China3.4France2.0Germany6.6Japan3.2Middle East2.5Other European1.4Russia1.2SAARC1.0South Africa1.4UK8.4USA24.8Other37.4Total100(FHRAI, Indian Hotel Industry Survey 2008-2009)The table in a higher place shows the percentages of people from varied origin that prefer staying in the five star deluxe and five star hotels in Rishikesh. According to this survey done by FHRAI, the number of tourists from US(24.8%) is the maximum which is look oned by UK(8.4%) and Germany(6.6%) which incur a marginal difference between them. These statistics clearly show us that there is a decent follow of tourists from The US for which we already have a substantially market. Therefore, there is a scope for targeting more people from UK and Germany. Though, we still cannot target a specific market with these statistics alone which will be do ne in the later partsDemographic SegmentationForeign tourist arrival in India on the bases of sexual activity(FHRAI, Indian Hotel Industry Survey 2008-2009)For the division 2006, the percentage of foreign male tourists was 57% against the female tourists which comprises of 36%. Whereas, there are 7% of the tourists which did not report and are missing from the stats.Similar is the case for the domestic tourists as well. The percentage of men travelling is slightly high than that of females all over India.Therefore, by evaluating all the data stimulaten above, we have chosen a diametricaliation market segment method to avow the target markets. Our specific target market will beForeign business travellers from UK and Germany national tourists- leisure with high income (4.9% in all of India)Meeting ParticipantsTarget Market- somatic- as this hotel is situated in a religious tourist place.Leisure- this can be the major target market as it is basically a health and wellness spa. it attracts tourists who wants to rejuvenate.Groups- groups improves sales as well as provides hotels a good market reputation and also capture major share of market.Positioning-Market PositioniningPerceptual function Foreign Business TravellersExpensive high ModerateService Ista .Less Expensive(naresh k.malhotra(marketing research p-700)Domestic TouristsExpensiveHigh ModerateService ServiceIsta .Less Expensive(naresh k.malhotra(marketing research p-700)Key-findings for market view-If we take price and customer satisfaction ratio into consideration, Ananda has lower price than its competitors and a good customer satisfaction but not the highest.If factors like brand reputation and value for money is considered than it has got the highest brand name.Corporate marketing strategy-objectivesStrategic tacticsImplementation periodrevenue500 m to 550.75m tie-up with the travel agencies.Air-line packagesCorporate gradeGroup ratesShould start from aprilShould start through out the yearCustom er relationship8.3m to 9.3mSet-up of confused information centresStart from april and should continue through out the year.Total profit45.64m to 58.42mCutting down all unnecessary spendingsThrough out the yearsProfit percentage12-15% tag on supporter with packagesStart from aprilMarketing strategy-As per the carrefour our hotel is offering,most of the facilities are delivered directly.to seduce it more prospering we select to promote our proceeds in market to increase market share.this can be done through discordant channels of advertising(travel agency,media advertising).As our target market is incorporate and foreign clients so for this we wish to tie up with prospective business to enhance the sale.hotel is in the growth level as per increase life cycle,but due to inlet the market share percentage has gone down.to come out of this,we are going to character the differentiationmarketing strategy.in this,the focus will be on different market segment with matched price and product with quality assist.An early(a) reason is our target market is divided into small segmentations so,can substantially increase our market share through these segmentations.our brand strategy is to provide high level of operate and customer satisfaction with low rates and first objective is to increase the market share.The marketing flux strategy is based upon the two ps factors.we consider price and product.our aim is to provide different jazz than other hotels and increase market share by establishing the brand value with in the customers.Markets Ansoffs Matrix live NewProducts Products3.product development1.Market Penetration ExistingMarkets4.diversification2. Market DevelopmentNewThe Ansoffs Matrix shows four different ways of marketing. It is basically a combination of four similar but different things. Existing Products and new products ,and, existing markets and new markets. In the case of the hotel ananda, we are going to follow the two methods that are Market Penetration and Market Development as shown in the figure above. We already have a product with us and we do not scheme to create or add something new to our product line. Our plan is to enter further into the markets that we are already in. As explained earlier, we plan to increase our market share at heart the same market and try to make up the customers who fall in the same category but different profiles.The second plan is to create new markets with our existing product to offer the customers. In this case we have planned to create a new target market in the form of the domestic tourist which comes for purpose of leisure and holidaying. This is being done because according to the research that we have done in the blood it shows us the scope of the domestic tourists. Another reason that supports this strategy is that we also have the right large-minded of product offering for this market.Budget-Financial Report Percentage of Revenue (2008-2009)HotelsanandaGrand hyattsherat onsVivanta(taj)Occupied dwell Hotel33,69922,20638,72939,828Occupancy percentage55.4%63.4%66.7%65.7%Rate per room$209.59$220.09$203$186.59Room Revenue65.20%66.8%63.9%55.7%F B Revenue23.5%20.8%26.3%31.4% bed covering conferences6.6%9.2%2.0%9.7%other4%2%7%3%Total100%100%100%100%Imp- subject to further researchEvaluation of marketing plan for ananda Himalayas-Objective Increasing customer satisfaction level from 6.2 7.5Key transaction Indicator Customer Satisfaction SurveysFrequency of Evaluation monthlyObjective Increasing Revenue from 500m 550.75m.Escalating profit from 45.64m 58.42mKey Performance Indicator Revenue Report, Financial visitFrequency of Evaluation AnnuallyObjective Growing profit ratio 12.00% 15%Key Performance Indicator Monthly Revenue reports, Cash flowFrequency of Evaluation MonthlyNote (subject to further research)Contingency plan-In the event that send worded marketing plan measures prove to be ineffective or below threshold following measures are suggeste dency plan-1. PRICE+PROMOTION Cruise liners+ vacations for students.2. PRODUCT + indue slant change the product operate.3. PROCESS+PEOPLE Can stick to same old fosterage methods) only to 10% of stock per store.4. Cost cutting and cost management regards to budgeting and investment plans.The product offerAnanda, Himalayas offers a wanton and contemporary rooms with a beautiful view of landscape grounds.this hotel has 21,000 square feet spa(only one in India).all rooms are designed with a high level of comfort and as per the indispensableness of guests.Along with rooms this hotel offers a range of packages that includes scheduled aerobics,hiking trips in the foothills of Himalayas,meditation and yoga classes,wellness and treatment packages,cooking classes etc.this hotel has 75 deluxe rooms,5 suites and 3 villas.all rooms are equipped with all modern amenities.Pricing strategies-Pricing of necessity to be dogged as plays a very vital share in hotel growth.every hotel has a s et target and goal,due to turning point prices have come down. rate rationalization is the biggest change after recession.Penetrating set strategies following this strategies would sustain ananda hotel to capture more portion of market share. In this strategy ananda hotel would be offering guests competitive rates with best standards of service which could be given in same class of hotel. Following penetrating price strategies would help ananda strengthening its position in market and establishing its brand name among customers. Penetrating pricing strategies would give elasticity to demand.Competition based pricing strategies Keeping an close eye on every shade of your competitor is very essential, specially pricing strategies. Price is the only factor which would play prime constituent in attracting customers. Competition based pricing basically means pricing according to your competitors and try good-looking better or something unique to them which would be our unique selli ng point of business. Competition based pricing will help ananda to fight competition and establish its market.Promotion-Corporate and commercial ratesAir-lines packagesCorporate packagesGroup discounted ratesOff-season special packagesOn-line dealsPromotional spa packagesAnanda place in tourism governance-Ananda is a hospitality service provider in destination. Destination is composed of different elements that together make up a destination mix. Basic components of destination mix are facilities, attraction, infrastructure, transportation and hospitality service provider commonly use as acronym FAITH (Weaver Lauton 2005).Ananda is an established name in hospitality service sector, just because of rescission it lost its market share and profit started declining. To revive from the situation of rescission ananda need to establish cordial relation with other component of Destination Mix. It has seen that hospitality service provider cant alone make tourist experience better of visit ing place. The hospitality service provider needs to work in coordination with other component so that tourist can get better work and he is satisfied with hospitality given to him. For example- Guest comes from united kinghdom to attend seminar or companys meeting when he would arrive airport first thing he would require would be transportation to hotel, after reaching hotel he would require facilities that would support his travel purpose. If guest would be getting all these facilities without bickering he would be a satisfied guest and repeat guest in future or guest commercially important person for hotel(CIP) for hotel who could give more business to hotel in near future.We would suggest ananda to apply push strategy. This strategy involves pushing the product through distribution channel to final consumer. crowd together strategy will induce distribution channel to put more effort for selling the hotels room and service as they would be having personal motive or interest t hat is profit or cathexis from hotel by doing so. Using push strategy will help ananda hotel to increase scope of capturing more market because by choosing distribution channel we could widen scope of advertisement and promotion of our products. For example hotel ananda could give profitable offers to travel agent like 10% of room cost as commission in accessory to their normal commission for booking. A push strategy provides an incentive for channel member to promote product to their customer or push product through distribution channel (Kotler, Bowen., Makens2006 pg 561).People-Orientation destinationChangeInternal marketingProcess-Process ananda hotel is using is based on technology and e-marketing. sensual evidence-Brand image related to vision position.surround-The situation analysis that can be done for the hotel will include all the external factors which have an effect on the working of the hotel. These external factors can be studied by the help of PESTEL (political, ec onomic, accessible, technological, environmental, legal) analysis and how these factors affect the working of the hotel. It is a strategic planning technique that provides a useful framework for analyzing the environmental pressures on a team or an organization. (Edmonstone, Havergal, 1999).Political Environment this includes all the judicature policies, the laws in which the hotel has to deal and the pressure groups which affect the hotel performance. The Political mental unsoundness such as tax rates and other matters like the policies and rules with which the hotel is concerned. The hotel has to be in the parameters of govt policies and have to follow all the rules and regulations.Economic EnvironmentThis environment mainly deals with the money capacity of the consumer.this plays a vital role in deciding the promotion or downfall of the hotel business.The economic meltdowns lead to a downfall in the tourism sector, leading to a drop in the business of the hotel. The frugalit y has started to improve and the international corporate travelers who form the major part of the target market of the hotel have once again started to come to the hotel. The economy will need some time to improve and this time can be utilized to make new marketing strategies which will attract more such travelers and suits their needs as well.Socio-Cultural EnvironmentIt includes behaviors, perceptions, choices and the set of various individuals who constitute the society. This part includes both the employees and the society in which the hotel is working. The hotel needs to keep proper address of its employees and their needs in order to achieve high standards of work. The hotel also has some social responsibilities. The hotel can social events, the earnings of which can go for charity, it can also have an effective disposal system for garbage, water supply and gases which may help in maintaining a healthy environment for the society around it.Technological EnvironmentThese fac tors act as the facilities in the hotels and are also the main aspects which help in the differentiation of one property to another. The ananda hotel has all the modern technologies being used forthe spas compared to other hotels. The hotel can always come up with some innovative ideas to place itself at a better position than its competitors.Natural EnvironmentThe natural environment does not have much effect on the business of the hotel as anada,Himalayas situated in the beautiful landscape of Himalayas with natural and pollution free environment. This factor effects only when the marketers can use it for the promotion of the hotel.Legal EnvironmentThis part includes the various rules and the policies that the hotel needs to follow in order to fade the operations efficiently. These legal issues include the payment of taxes, giving proper remuneration to the staff, following of the legal government policies and others. Tax paid by tourists in India is the highest in the world, Ind ian hotels charge about 40% taxes compared to other Asian countries where it varies between 3% and 6%. (World travel and tourism council, 2010). Such factors as mentioned above shows the different legal requirements that are expected to be fulfilled by the hotel.Proposed environmental Scanning System for anada,Himalayas hotelEnvironmental FactorSource of InformationPerson ResponsibleFrequencyCompetitorsNewspapers rung/ solicitudeDailyGuestsStaffDailyMagazineschargeWeekly internetStaff/ ManagementWeeklyAnnual ReportsManagement periodicCustomersCustomer feedbackStaffDailyStaffManagementWeeklyTravel agentsManagementMonthly unshakable guestsStaff/ ManagementMonthlyInternetStaff/ ManagementWeeklyEconomicEconomic newslettersManagementWeeklyNews papersManagementWeeklyInternetManagementWeeklyAverage room ratesAccountant/ ManagementDailyBalance sheetsAccountant/ ManagementYearlyInternetManagementMonthlyTechnologiesTrade magazinesManagement/ Department headsMonthlyTrade showsAccountant/ Mana gementYearlyInternetManagementMonthlyNewspapersManagementWeeklyTelevisionManagementDailyThe above mentioned three name areas need to be followed for the purpose of the environmental scanning.The hotel became one of the top rated hotels in the rishikesh, but due to the recession in late 2008 most of the business was lost. The above mentioned SWOT and PESTEL analysis, if followed properly, will help the business to reach high levels of business and market share.Service Concept/productivity-Anada,Himalayas could get competitive advantage if, they properly plan and implement their supporting products. They must meet customers needs and expectation, to overbeat their competitors (Hertneneky, B,P.2006. p.g 281). In this critical stage of revitalizing from rescission, ananda hotel should not only concentrate on providing core product or basic product that would be food, shelter, and safety of guest. They should look upon providing augmented or supporting products, which are very importa nt for delivering quality service and meeting expectation of guest. The augmented product includes accessibility, atmosphere, customer interaction with service organization, customers participation and customer interaction with each other (Kotler, Bowen., Makens2006 pg 307). Augmented product is important to be understood because it tells what is delivered and how is to be delivered. ananda hotel have to work seriously upon this service concept of augmented product because these product have huge impact on guest and will help to capture major portion of markets, by customer satisfaction which is secernate element in hospitality industry.Facilities we are providing are-Wi-Fi internet access ananda hotel can provide Wi-Fi anytime anywhere, whether in-room, by the pool or in other public areassleep comfort ananda hotel can provide ergonomically designed beds and a pillow menu with a wide range of comfort pillows.Business Centre High speed internet access and board room style meeting rooms.Spa 21,000 square feet spa with all the required equipments.Pool Fitness Centre ananda hotel is giving temperature controlled swimming pool for all seasons, state of the art gymnasium with personal trainers.Tailor-made food-ananda provides food as per the customer body type and known for cooking without oil.food is inspired by ancient times and prepared with natural ingredients.Organisation-The best part about anand,Himalayas is its staff as all staff is between the age of 21 to 35,customer oriented,friendly,well versed with the knowledge of therapies.they should have this kind of staff only as customer should feel at home and comfortable only than they will be able to enjoy the treatment.strategy-Advertisement it is one of the major promotional joyrides which can be used by hotel anada,Himalayas for promotion of their products and services. Advertisement could be one the very triple-crown tool which can be used for increasing market share. If advertisement is well positi oned and planned it could help to overcome competition and help to revive from recession (Jhon,L.2009.p.g 6). Various form of advertisement which is used for promoting its products and services could be1.Internet This is one of the most widely used medium through which hotels can promote its product and services. It could be very effective in promoting products and services.2.Printed Media For example magazine, journals and news papers. This is very useful because it would help promoting product among corporate clients and corporate employee.3.Visual Media For example television, this is said to be very effective as it gives both visual and audio effect to guest. They can actually feel the product or services.4.Sales promotion They attract consumer vigilance and provide information that may lead the consumer to buy the product. Ananda can use sales promotion tool as to get quicker and stronger response from consumer. Various sales promotion tools which can be used could be5.Prom otional letters to existing guests ananda hotel can send promotional letter which includes lucrative discount offers, and various packages at discounted rates. This strategy would help ananda from recovering from recession and capturing more shares in market.distributional StrategyDistributional strategies which can be used by hotel ananda for capturing market share and overcome competitors could be-1.Trade Show This could be very effective in distributing of products and service because trade shows are being attended by various travel agents and travel tour operator. This would help them to build cordial relation with them, in return of that we could business from them.2.Exhibitions these are very important in distribution of the hotels product and services as during exhibition hotel managers could get chance to interact with other hotel managers and managers of other companies to whom they could explain their product or service which could help in increasing sales revenue.3.Airli nes magazines in airlines and airline companies could be important source for distribution of product and services of hotel.4.Corporate Companies Relation with corporate companies and advertisement in corporate magazine could help in promoting hotels product services.