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Supply Creates Its

Own Demand: A Study

of Hotel Industry inKolkata

A strategy delineates a territory in which a company seeks to beunique. Appropriate changes in strategies are mandatory to sustainin marketplace. This depends on the present situation and future

predications. However, till now very little research has been carriedout for hotel industry in Kolkata, India. This study is focused on point-of-differentiation; present marketing strategies and demand-supplygap of luxury hotels in Kolkata. This study also concentrated to findout gap between guests expectations Vis--vis hoteliers perceptionabout expectation of guests.

ITC, The SonarThe Luxury Collection

2010

Vivek Kumar

Kolkata ,India

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A REPORT

ON

SUPPLY CREATES ITS OWN DEMAND: A STUDY OF

KOLKATA HOTEL INDUSTRY

By

Vivek Kumar (09BS0002756)

ITC, The SonarThe Luxury Collection

A report submitted in partial fulfillment of the requirements of

MBA Program of

The ICFAI University, Dehradun

Distribution list:

Ms. Snigdha Majumdar (Six Sigma Manager, ITC Sonar)

Mr. Anupam Ghosh (Faculty, IBS Kolkata)

Date of Submission: 14thMay, 2010

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Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata

Authorization:

The report is submitted as partial fulfillment of the requirements of

MBA Program of ICFAI University, Dehradun

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Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata

Acknowledgement

I would like to thank Mr. Ranveer Bhandari , General Manger ,ITC Sonar for giving me

permission to carry out this project.

With immense pleasure and deep sense of gratitude, I wish to express my sincere

thanks to company guide Ms. Snigdha Majumdar ,Six Sigma Manager, ITC Sonar and

faculty guide Mr. Anupam Ghosh , Lecturer, IBS, Kolkata for his constant interest,

encouragement and expert guidance throughout the course of this project, which

provide the necessary driven force that enabled me to pursue our work with vigor and

keen interest.

I would like to extend a deep sense of heartfelt thank to my friend Harshit sethi, Richa

Ranjan and Sujan Chakarobarty for their guidance and suggestions because without

them this project wouldnt have been possible.

At last, I express my sincere gratitude to my peers and family for their moral support

and the love rendered during the course of my dissertation work.

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Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata

Contents

Authorization: .......................................................................................................................................... i

Acknowledgement................................................................................................................................... ii

Abstract................................................................................................................................................... v

List of Illustration.................................................................................................................................... vi

1. Introduction..................................................................................................................................... 1

1.1. Background .............................................................................................................................. 2

2. Overview of Hotel Industry .............................................................................................................. 4

2.1. Overview: Indian Economics..................................................................................................... 4

2.2. Overview: Hotel Industry in India ............................................................................................. 7

2.3. Overview: Hotel Industry In Kolkata ....................................................................................... 11

3. Research Design............................................................................................................................. 13

3.1. Sampling Frame ..................................................................................................................... 13

3.2. Sample Size ............................................................................................................................ 13

3.3. Methodology ......................................................................................................................... 14

4. Discussion ...................................................................................................................................... 15

4.1. Positioning of Hotel industry in Kolkata .................................................................................. 15

4.1.1. Convenient location:....................................................................................................... 17

4.1.2. Service quality ................................................................................................................ 18

4.1.3. Food and Beverage ......................................................................................................... 18

4.1.4. Brand ............................................................................................................................. 19

4.1.5. Other Variables .............................................................................................................. 19

4.1.6. Combining all Variables .................................................................................................. 20

4.2. GAP between customers expectation and hoteliers perception about customers need ....... 22

4.2.1. GAP Analysis with Guests................................................................................................ 22

4.2.2. GAP Analysis with IT & ITES industry ............................................................................... 24

4.2.3. GAP Analysis Model for Hotel Industry ........................................................................... 26

4.2.4. FMEA for largest GAP area: Room Service ....................................................................... 31

4.3. Present Market Strategies of Hotel Industry in Kolkata ........................................................... 35

4.4. Prediction of Demand and supply in Kolkata in future ............................................................ 36

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Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata

5. Recommendation .......................................................................................................................... 39

6. Conclusion ..................................................................................................................................... 41

Annexure I: About ITC Ltd. ........................................................................................................................ i

Annexure II: About ITC WelcomGroup .................................................................................................... iii

Annexure III: About ITC ,The Sonar (Kolkata,India) ................................................................................... v

Annexure IV: List of Company in Salt Lake..............................................................................................viii

Annexure V: Questionnaire for Guest ..................................................................................................... xi

Annexure VI: Questionnaire for Hotelier ................................................................................................ xiii

Annexure VII: Questionnaire for IT Industry ........................................................................................... xvi

Annexure VIII: Calculation for Area for Perceptual Map ....................................................................... xviii

Bibliography: .......................................................................................................................................... xx

Glossary ............................................................................................................................................... xxii

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Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata

Abstract

A strategy delineates a territory in which a company seeks to be unique. Appropriate

changes in strategies are mandatory to sustain in marketplace. This depends on the

present situation and future predications. However, little research has been carried out

for hotel industry in Kolkata, India. This study is focused on point-of-differentiation;

present marketing strategies and demand-supply gap of luxury hotels in Kolkata. This

study also concentrated to find out gap between guests expectations Vis--vis hoteliers

perception about expectation of guests. A survey has been conducted on hoteliers,

guests and IT industry to get to collect the data. Data has been interpreted by

perceptual map, GAP analysis and FMEA (Failure mode and effects analysis).It is foundthat guestsperceive ITC, The sonar as best hotel in the city (Kolkata, India)