A STUDY ON SALES PROMOTION IN HOTEL INDUSTRY

A PROJECT REPORT

Submitted by

ANTONY WILLIAM TRUMAN (REG. NO. 3141129)

Under the guidance of

DR.AISHWARYA
Submitted in partial fulfillment of the requirements for the award of degree in

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES SATHAYABAMA UNIVERSITY JEPPIAAR NAGAR, RAJIV GANDHI SALAI CHENNAI-600119, TAMILNADU APRIL 2013

DEPARTMENT OF MANAGEMENT

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of ANTONY WILLIAM TRUMAN .C (REG. NO. 3141129) who carried out the project entitled A STUDY ON SALES PROMOTION IN HOTEL INDUSTRY under my / our supervision from November to February 2013.

Internal Guide

External Guide

(Head of the Department)

Submitted for Viva voce Examination held on_____________________

Internal Examiner

External Examiner

DECLARATION

I ANTONY WILLIAM TRUMAN hereby declare that the Project Report entitled A STUDY ON SALES PROMOTION IN HOTEL INDUSTRY done by me under the guidance of Dr. /Prof. / Mr. /Ms. AISHWARYA at RESEDA,IN CHENNAI is submitted in partial fulfillment of the requirements for the award of degree in Master of business Administration.

DATE:

PLACE:

SIGNATURE OF THE CANDIDATE

ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to Col.Dr.JEPPIAAR, M.A., B.L., Ph.D., Founder Chairman, Thiru. Marie Johnson, B.E., M.B.A., M.Phil. (Ph.D.), Tmt. Mariazeena Johnson, B.E., M.B.A., M.Phil. (Ph.D.) Managing Director and Dr. B.Sheela Rani, M.S (By Research), Ph.D. Vice-Chairman of our college for their good wishes for this project.

extend

the

immense

gratitude

to

the

Head

of

the

Department

Mr.MUTHUMANI for his motivation, inspiration, and encouragement for the completion for my project. The valuable and unflinching requital support in this Endeavor DR.AISHWARYA my internal guide, Department of Management Studies whose assistance was immeasurable to the completion of this project.

I am sincerely thankful to MR.RAFEEQ AND MR.CHIDAMBARAM for her help and support throughout the project.

I would also like to thank all the staff of the organization for helping me directly and indirectly to conclude this work. Last but not the least, my heartfelt gratitude to my parents, relatives and my friends for their constant encouragement, support, help and valuable advice to make this project a success.

TABLE NO 4.1.1 4.2.2. 4.3.3 4.4.4 4.5.5 4.6.6 4.7.7 4.8.8 4.9.9 4.10.10 4.11.11 4.12.12 4.13.13 4.14.14 4.15.15 4.16.16 4.17.17

CONTENTS

PAGE NO.

Table showing the other brand for the customers Table showing the Attributes of the Respondent Table showing the Buying level Of the respondents Table Showing the Chance Of Going Other Brand Table showing the Satisfaction of Respondents Table Showing the Value of the Brand Table Showing the Experience Of the Customers Table Showing The taste Of the Brand Table Showing the Response Of Price Table Showing the Perception Of the Customers Table Showing the Thinking Level of Customers Table Showing the Rating of the Brand Table Showing the Motivation Aspect of the Customer Table showing The Influence Factor Of Customers Table Showing Mindset Of the customers Table Showing the Recommendation of Customers Table Showing feelings Of the Customers

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

CHART NO 4.1.1 4.2.2. 4.3.3 4.4.4 4.5.5 4.6.6 4.7.7 4.8.8 4.9.9 4.10.10 4.11.11 4.12.12 4.13.13 4.14.14 4.15.15 4.16.16 4.17.17

CONTENTS

PAGE NO.

Chart showing the other brand for the customers Chart showing the Attributes of the Respondent Chart showing the Buying level Of the respondents Chart Showing the Chance Of Going Other Brand Chart showing the Satisfaction of Respondents Chart Showing the Value of the Brand Chart Showing the Experience Of the Customers Chart Showing The taste Of the Brand Chart Showing the Response Of Price Chart Showing the Perception Of the Customers Chart Showing the Thinking Level of Customers Chart Showing the Rating of the Brand Chart Showing the Motivation Aspect of the Customer Chart showing The Influence Factor Of Customers Chart Showing Mindset Of the customers Chart Showing the Recommendation of Customers Chart Showing feelings Of the Customers

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

SALES PROMOTION IN HOTEL INDUSTRY

AN INTRODUCTION TO SALES PROMOTION: Sales promotion consists of those promotional activities other than advertising, personal selling, and publicity. As such, any promotional activities that do not fall under the other three activities of the promotion mix are considered sales promotion. One airline, for example, offered its passengers discount cards that could be used to purchase coats at greatly reduced prices from a well-known clothing company. For our purposes here, promotion is a broad term that includes sales promotion as well as the other three promotional activities. The techniques of sales promotion are varied and numerous. The common ones used are coupons, drawings, games, contests, discounts, demonstrations, premiums, samples, money refund offers, and trading stamps. A combination of these can be, and often is, used in the same campaign. When a breakfast cereal company expanded its business abroad, it had to enlighten consumers about dry cereal and cold breakfasts. To encourage this new eating habit, the company used samples and demonstrations in conjunction with a heavy advertising campaign. To regain market share during an economic slump, another company distributed 1.5 million free samples of improved baby napkins. Each box also had a picture of a little bear. Parents could get baby items by saving the required number of bears. Sales promotion is temporary in nature. Not being self-sustaining, its function is supplementary to advertising, personal selling, and publicity. To launch Budweiser beer in Great Britain, the beer company employed an "American" theme. It broadcast TV commercials on the Fourth of July and Thanksgiving Day that were filmed in California with American actors. To amplify its advertising effort, the company used a variety of salespromotion techniques. It made posters, flags, banners, and T-shirts available to pubs for promotional parties. Budweiser glasses, bar towels, football banners, and similar items were also offered for sale to pub patrons. Moreover, Americans were brought in to plan American music nights. Sales promotion is not restricted to stimulating demand at the consumer level. It may be used as a stimulus to magnify business people's support as well. In order to get businesses in Thailand to carry one American company's dairy products, the company used sales contracts to provide small retail outlets and restaurants with refrigerators for $1 if a certain quota of the company's products were sold. The American company also had to convince the Thai businessmen not to store other companies' products in the freezers and not to unplug freezer units at night to save electricity. The use of sales promotion is not limited to consumer products; it can be used with industrial selling too. Many drug manufacturers attract drug distribution companies by sponsoring cocktail parties, trips and other events. Gifts are given to doctors, and doctors' wives are taken on shopping tours.

The popularity of sales promotion has grown steadily both in the United States and overseas. A questionnaire sent to executives by a leading advertising journal revealed a shift from media advertising to sales promotion. Compared with five years ago, three of five firms had moved to increase their expenditures on such non-media alternatives as booths at trade shows and expositions, displays where people can purchase the product directly, and publicity. According to one study of shopping behavior in the United States, almost 70 percent of all non-food purchases in supermarkets are generated by in-store decisions; therefore, displays and other in-store promotions are highly effective. If the same decision-making pattern is prevalent outside the United States, sales promotion in these localities should prove to be just as indispensable. Sales promotion is effective in helping consumers become acquainted with a new product when it is first introduced to a market. It also works well with existing products that are highly competitive and similar to each other, especially when they have a low unit-price and high turnover. Under such conditions, sales promotion is needed to gain that "extra" competitive advantage. A Japanese firm created a great deal of excitement in Thailand by including game cards in its soap boxes, and consumers could not resist buying more and more soap in search of the winning cards. Likewise, most gas stations in Thailand at one time gave away free towels as a bonus when a customer filled his car's gas tank. In Brazil, electrical fixtures are treated as commodities, and Philips wanted to make electricians aware of its brand. Toward this objective, the company offered a training course, with a certificate and a tool kit as bonuses. The course consisted of four lessons that had a great number of illustrations to accommodate the low literacy rate of Brazilian electricians. The company's problem was that there was no trade magazine specifically for electricians whereby they could advertise the course. Philips devised a program to put up displays in electrician shops, where electricians could pick up leaflets advertising the course. Since the course was too costly for an audience made up of just anyone, the company limited the course to people whose occupations were related to the electrical industry. Electrical equipment shops were also allowed to participate in the sales-promotion program: stores were informed of the program's benefits and their sales clerks were invited to take the course too. The techniques of sales promotion can sometimes collide with psychological barriers, and this fact is applicable to shop owners as well as consumers. Some foreign retailers are reluctant to accept manufacturers' discount coupons because they fear that the manufacturer will not repay them the money they lose when giving the discount. Much like many other marketing aspects, sales-promotion methods may have to be amended. The techniques employed, to be effective, should be consistent with the local preferences. Philips offered a set of dominoes as a premium in Brazil, where the game is national pastime. A player holds the colored side up to prevent an opponent from seeing the dotted numbers side. Since the company's name was on the back of every domino, electricians were often reminded of the brand.

INDUSTRY PROFILE: Hotel industry in India has been an important industry to the Indian Economy. It is one of the largest foreign exchange earners, to the country and also one of the largest employers, both directly and indirectly. The hotel industry in India can be divided into eight segments based on the norms set by the Ministry of Tourism. They are 5-Star Deluxe, 5-Star, 4-Star, 3-Star, 2-Star, 1-Star, Heritage and Unclassified. However, the 3-star, 2-star, 1star and unclassified hotels in India are spread across the length and breadth of the country and are highly fragmented in nature, whereas, the upscale, mid market and heritage categories are highly organized. The upscale category hotels are primarily present in the metros and the tier 1 cities and are now targeting the tier 2 cities for expansion. The industry is characterized significantly by small unorganized players, labour-intensive operations, seasonality, cyclicality, highly capital intensive nature and highly sensitive to the external factors like economy, terrorism and political status. The demand for the hotel rooms is driven by the rise in the number of the domestic and well as the foreign tourists. The demand for the foreign tourists is driven by the level of growth in Global GDP, increased business activities of other nations with India, growing number of tourist destinations, rise in trade and sporting events, marketing efforts like Atithi Devo Bhava & Incredible India. Domestic tourist arrivals are the backbone of Indian Hotel Industry as the number of domestic tourists is more than 100 times as compared to foreign tourists. Domestic tourists are of 2 types, leisure travellers and business travellers. Growth in leisure travellers is driven by rising personal discretionary income, evolving lifestyle, growing number of multi earner families, weekend vacation culture,improvement in rail, air as well as road connectivity, diverse topography and rich cultural heritage. Drivers of domestic business travelling are rise in trade and commerce, increasing geographical spread of companies, growing MICE culture. In the upscale category, global majors in the hospitality industry like IBIS, Westin, Novotel, Ritz-Carlton, Sofitel, Pullman, Ista, Aloft, Dusit D2, Shangri la are planning to enter India or expand their existing operations. Players like Lemon Tree, IBIS, Park, Sarovar and Ginger have identified that there is dearth of quality rooms in the mid market segment across the country, especially in the tier 1 and tier 2 cities. Approximately, 55 per cent of the upcoming inventory is expected to be in the mid market and economy segment. Entry of such organized players is expected to improve the quality of offerings and bridge the wide gap between mid market and upscale category. CARE Research has identified ten major cities for study of Hotel Industry in India. These cities represent a healthy mix of business and leisure destinations with varied topography and culture. These ten locations are expected to see a surge in room inventory in the upscale category. Kolkata and Noida are expected to witness the highest growth in the room inventory. Overall, CARE Research expects about 27,000-28,000 rooms to be added in the upscale category in the ten cities upto CY15. CARE Research believes that the performance of the industry in the medium term will be a mixed result, with some cities showing a robust growth, whereas some cities will suffer due to the huge supply influx.

Evidence of hotels and the hospitality industry have been recorded as far back as biblical times when Mary and Joseph arrived in Bethlehem during the census. As the Bible depicts, Mary and Joseph were refused accommodations because there "was no room at the inn." Since the beginning of time, people have traveled for commerce, religion, family, health, immigration, education and recreation. As cited by Texas Tech University, the word "hospitality" comes from the Latin root meaning "host" or "hospice." The university further noted that the first hotels were nothing more than private homes opened to the public. Most, unfortunately, had poor reputations. Under the influence of the Roman Empire, inns and hotels began catering to the pleasure traveler in an effort to encourage visitors. The first inn located in America was recorded in the year 1607 and lead the way with many other firsts in the hospitality industry. The first publicly held hotel (the City Hotel) opened in New York in 1792. The first modern hotel (the Tremont) opened in Boston in 1809 and the first business hotel (the Buffalo Statler) opened in 1908. From there a surge of hotels flooded American and the rest of the world with prominent names such as Radisson, Marriot and Hilton.

The California markets are continuing their strong performance despite concerns about that states economy. New Orleans and Chicago have also been steady performers, while Boston is doing very well due to a strong citywide convention calendar. Houston has also done well this year, riding an energy boom, and Nashville has come back, although there is significant new supply on their horizon. Florida is steady, with Miami and Tampa doing well while Orlando is in the middle of the pack as it continues to absorb supply. . Evidence of hotels and the hospitality industry have been recorded as far back as biblical times when Mary and Joseph arrived in Bethlehem during the census. As the Bible depicts, Mary and Joseph were refused accommodations because there "was no room at the inn." Since the beginning of time, people have traveled for commerce, religion, family, health, immigration, education and recreation. As cited by Texas Tech University, the word "hospitality" comes from the Latin root meaning "host" or "hospice." The university further noted that the first hotels were nothing more than private homes opened to the public. Most, unfortunately, had poor reputations. Under the influence of the Roman Empire, inns and hotels began catering to the pleasure traveler in an effort to encourage visitors. The first inn located in America was recorded in the year 1607 and lead the way with many other firsts in the hospitality industry. The first publicly held hotel (the City Hotel) opened in New York in 1792. The first modern hotel (the Tremont) opened in Boston in 1809 and the first business hotel (the Buffalo Statler) opened in 1908. From there a surge of hotels flooded American and the rest of the world with prominent names such as Radisson, Marriot and Hilton.

Industry Total Luxury Upper Upscale Resort Key Markets NY Boston DC Chicago New Orleans Orlando Miami Phoenix LA SF

ADR 4.5% 6.1% 4.7% 4.8% 4.4% 9.3% 0.5% 4.8% 7.8% 3.6% 6.5% 1.8% 7.0% 11.5%

2012 Q2 Occ. RevPAR 2.4% 7.1% 3.5% 9.8% 2.4% 7.4% 3.0% 8.0% 1.5% 0.9% 3.0% 3.3% (0.1%) 2.2% 0.6% 1.4% 5.8% 2.0% 6.1% 10.8% 4.0% 9.1% 9.0% 5.9% 7.2% 3.4% 13.4% 14.2%

2012 YTD thru 7/28 ADR Occ. RevPAR 4.2% 2.6% 7.0% 5.1% 3.5% 8.8% 4.1% 2.4% 6.8% 4.9% 3.2% 8.3% 2.8% 8.4% (0.7%) 5.5% 11.8% 4.2% 7.8% 2.3% 5.2% 11.4% 3.0% 2.3% 1.0% 4.6% 3.5% 2.5% 1.7% (0.6%) 4.3% 2.1% 6.0% 11.0% 0.6% 10.9% 17.2% 6.9% 9.7% 1.9% 9.8% 14.3%

Source: Smith Travel Research, JP Morgan North American Equity Research The performance of major brands that are operated by publicly traded hotel companies continues to closely track the national trends. While the upscale and upper upscale brands are relatively balanced between occupancy and ADR growth, luxury brands are skewing more towards rate, for example, even though the Le Meridien chain reported a slight drop in occupancy in Q2, we would not be too concerned as their occupancy rate for the quarter was still over 87%!

Marriott (full service) Ritz-Carlton Sheraton Westin Luxury Collection W Le MeridienHyatt

ADR 3.4% 6.2% 2.8% 4.3% 7.3% 3.6% 5.6%4.8%

Q2 2012 Occ RevPAR 2.7% 6.1% 0.4% 6.7% 3.2% 6.2% 1.7% 6.0% 4.6% 12.2% 2.1% 5.8% (0.5%)3.9% 5.0%8.7%

ADR 2.8%

Rolling 4 Quarters Occ RevPAR 3.0% 5.9% 1.8% 3.3% 3.3% 4.6% 3.1% 2.1%4.2% 8.8% 6.8% 7.5% 11.3% 6.9% 6.9%7.7%

7.0% 3.4% 4.1% 6.4% 3.7% 4.7%3.3%

Outlook: The fundamental picture in the lodging industry has not really changed in the past year or so. Additions to supply are still running well below historical levels (up 0.4% in the past 12 months vs. long term average of close to 3%), while demand continues to grow (up 4.0% in

last 12 months vs. long term average which is also around 3%), which leads to occupancy growth which in turn provides the opportunity to raise room rates.

COMPANY PROFILE: Concept Hospitality Pvt. Ltd. was formed on 10th July, 1996 and made a deemed public limited company on 16th February, 1998, and was recently deemed as Concept Hospitality Pvt. Ltd. The promoters of Concept Hospitality Pvt. Ltd. were Mr. Param Kannampilly (who was also the Technical Director of Kamat Hotels (India) Limited) who is an experienced Hotelier and a Fellow of the Hotel Catering & International Management Association of London and Mr. Vithal V. Kamat (who is also the Chairman & Managing Director of Kamat Hotels (India) Limited) and an eminent Hotelier & Restaurateur. In December 2007 Mr Vithal V Kamat along with Mr Ramesh Shanbag sold their stake to Kamat Hotels India Ltd. On March 13th 2009 Mr Param Kannampilly bought out Kamat Hotel India's stake in Concept Hospitality. April 2009 the company divested stake to Obelia hotels Pvt Ltd. and effectively merged operations with Beacon Hotels. Today the company is managing 13 hotels across India and has signed up 15 hotels which are scheduled to open in the coming two years. The company is actively looking out for new management opportunities and is focusing on becoming the leading management oriented Hotel Chain in India. Concept hospitality has just finished the launch of its new Brand The Fern, which will soon become a trademark for environmentally sensitive hotels across India. Our Mission : To execute and manage a group of Hotels, ensuring the highest levels of quality and service to guests, while providing an ever increasing profitability, facilitating growth and development of both the hotels and the employees.

Our Commitment : We have developed strategies to help hoteliers/entrepreneurs increase the value of their investments and this has paid rich dividends as more and more travelers are becoming conscious and choose to patronize our group of hotels, which are environmentally friendly and most of them certified as Ecotel Hotels. Environmentally sensitive travellers are the fastest growing segment in the Travel Industry.

SERVICES: CHPL PROVIDES THE FOLLOWING SERVICES Hotel Management & Operations Managing and supervising day-to-day operations of hotels, backed by a pool of qualified and experienced professionals. Services include: Pre-opening services :

Feasibility study. Market survey. Technical services. Architect brief. Interior Design brief. Services brief. Kitchen consultant brief. Project planning, implementation scheduling. Vendor selection & negotiation. Marketing strategy.

Post-operative services :

Managing / Operating the Hotel. Cost & Revenue budgeting. Review of performance jointly with owners. Database management & mass mailing. Quarterly service / system audits. Centralized reservation. Restaurant concept design / Implementation.

Hospitality Consultancy :

Market survey and feasibility studies. Conceptualization of hotel projects. Financial viability analysis.

Marketing :

Market positioning / branding of the hotel. Advance booking of inventory / contracts. Reservation network access.

ECOTEL Services :

CHPL has tied up with HVS Eco-Services to facilitate growth of ECOTELS (EcoFriendly Hotels). CHPL helps operationalize the certification and market the brand.

OUR BRANDS : CHPL operates across a broad spectrum of markets from standard to deluxe hotels, apartment hotels, boutique hotels & time-share properties (in conventional star terms, from three to five star hotels). THE FERN HOTELS & RESORTS The Fern is the luxury elite service hotel brand of Concept Hospitality Private Limited. The Fern promises premium standards of physical amenities & high service standards with a true passion for the environment. The Fern, a plant everlasting, has retained many of the characteristics that were present when plants ventured out of the sea and onto land over 400 million years ago. It is the very epitome of pedigree among Flora and it aptly represents-The FERN Hotels & Resorts.

CHAPTER-2: OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE: To find how the sales promotion works in the hotel and how they are finding the market thorough sales promotion

SECONDARY OBJECTIVES: People should know that the sales promotion Building Product Awareness Creating Interest among the customers to buy and enjoy Providing Information regarding the product To know the Demand Reinforcing the Brand among other competitors

NEED OF THE STUDY: This study will help us to analyse the competitors in the hotel industry to make the business into successful one. Selling hotel among IT people, Business people is different method of sales promotion. Through this study , we get the market segmentation and market position inn the current markets

LIMITATION OF THE STUDY; The study was done within the hotel around Chennai The study was limited to the hotels which are familiarised. Hence all the data and their temporal context would be limited to the abovementioned period only. Though this research has the survey about competitors, it has certain limitations due

to the accessibility to the exporters who are using the hotels of competitors. As the sampling method adopted was non-probability sampling, no advanced analytical tool was applicable.

METHODOLOGY ADOPTED FOR THE STUDY: Research: Research is a diligent enquiry and careful search for new knowledge through systematic, scientific and analytical approach in any branch of knowledge. According to Fred.W.Kerlinger Research as a "Systematic, controlled and empirical and critical investigation of hypothetical propositions about the present relationships among natural phenomena"

Research is common parlance refers to a search for knowledge. It can be also defined as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific information. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. Methodology: In methodology the researcher discuss the data collection analysis tools used to analyze data period of study. Types of research Method of data collection Primary data Secondary data Sample instrument - Direct interview and Mail survey - Company brouchers and documents - structured questionnaire - Descriptive research

Type of research

Descriptive Research: Descriptive study is a fact finding investigation with adequate interpretation. It is more specific than an exploratory study as it has focus on particular aspects or dimensions of the problem studied. It is designed to gather descriptive information and provide information for formulating more sophisticated studies. Research design is a conceptual structure within which the research is conducted. It is used for the purpose of the study, which is descriptive in nature.

Methods of Data Collection Data are facts, figures and other relevant materials, past and present, serving as bases for study and analysis. Sources of data; a) Primary Data b) Secondary Data The data for project work was collected from secondary sources.

Primary Data Primary Sources are original sources from which the researcher directly collects data that have not been previously collected. Primary data was collected by direct interview and mail survey

Secondary Data Secondary data are the data which have been collected and complied for another purpose. The secondary data was collected from company books, company brochures & documents

Research Methodology

Research Methodology is the doctrine of methods that is the application of logic in the fields of science. It is concerned with the organization of research to ensure that the outcomes, represents scientific knowledge coming from research to the type of process which led to that outcome. Research methodology is a scientific and systematic way to solve research problems. Researcher has to design his methodology.

Review Literature: Peattie. k International journal of service industries management:

Sales promotion as part of the communication mix is virtually ignored within the services marketing literature, in comparison with personal selling and "above-the-line" advertising. However, "below-the-line" techniques have been growing in their extent, credibility and sophistication during the last two decades. They have now reached the point where they deserve consideration in relation to other areas of marketing practice beyond their fast-moving consumer goods (FMCG) origins. The different tools which make up the promotional toolkit have also reached a point where they deserve individual consideration instead of being bundled together. Seeks to demonstrate how one such tool, the promotional competition, represents a significant opportunity for services marketers. Reviews the literature relating to sales promotion to build a case for the suitability of competitions for services marketing, and presents the findings of a survey of 188 services-sponsored competitions to explore the nature and extent of competitions' use in practice.

From Andrew Johnson, Director-General of The VA Ensuring a positive experience for the recipient of a gift voucher can make all the difference in the success a sales promotion since brand identity will be reflected by the quality of service and gift that are delivered. The goal of a gift voucher or gift card should be to make a lasting and positive impact through sales promotion and one way of ensuring that the recipient will be left with something special to remember is to use and experience gift vouchers. Several members of The VA provide chance in a lifetime experiences as giftvouchers and I thought that this would be a great opportunity to highlight the benefits of utilising experiential sales promotions as a means of building enduring relationships with the consumer.

Red Letter Days was a pioneer of the concept of offering gift experience vouchers that promise exciting days out and the opportunity to try unusual activities the gift with a difference for both corporate and consumer markets. Zachary Soreff, director of sales & marketing at Red Letter Days explains the value of an experiential reward: Experiences offer a more interactive and tuned-in way of promoting a product which, in turn, allows audiences to become more integrated with the brand. They are a popular tool for sales promotion because we are engaging customers emotionally with the brands by giving them a memory to cherish. There is certainly an emotional touch point for any company, whether it is speed and excitement to attract the younger market or comfort and luxury to attract a more refined audience. It is the job of the experiential provider to discover the activity or experience that will best represent the brand to its intended audience.

Tim Bishop of eXhilaration explains that by aligning your brand with a relevant experience you can help to create a more exciting perception of your business in the customers mind. Exhilaration are experts in providing vouchers for adrenaline experiences such as Ferrari driving, bungee jumping and adventure weekends but also offer less extreme pursuits including spa days and gourmet cruises. The impact of sending someone over a mountain with nothing but a bit of elastic to hold onto will certainly be a lasting one he continued, but not necessarily one that everybody would enjoy. The Full Experience Company offers a wide choice with its trademarked Smart Box gift packages. The secret to its success, explains Benoit Linossier, managing director, is that the Smart Box appears to be worth a lot more than it really costs, which just goes to show that a gift does not necessarily have to rely on its monetary worth to be appreciated and valued. A great example of how experiential vouchers can add value to a sales promotion without pushing up the costs is the campaign that The Full Experience ran with Nokia in France. Benoit explained: By offering an Adventure Smart Box instead of a discount, customers were encouraged to purchase a top of the range mobile phone instead of the

cheaper alternative as they felt that they were getting a lot more for their money with an experience. This demonstrates just how valuable experiential gifts can be; that essentially, its the memories that really count. The Kuehn-Rohlov model This is the learning brand-switching model that are designed to evaluate promotions in several ways - first they show who is attracted by the promotions, and then separate the ones that have higher pre-purchase probability. The authors also demonstrate how to use the model to study the relationship among deal type, brand, and product-to-product repurchases for both new buyers and for existing customers. Rao-Linnen Model This model was developed on the base of the franchise-retail environment, and though it is still not clear whether the model can be used outside franchise-retailing environment it has number of crucial characteristics. One of the most important characteristics of this model is that is able to deal with multiple simultaneous promotions and shows how joint effects of multiple simultaneous promotions can be handled. It is the first model that deals with the joint competitive effects and the joint effects of several promotions simultaneously.

Little's Brandaid Promotional Model This is part of the Brandaid aggregate marketing model developed by Little. He actually looks at two contracts - promotional time and promotional response function. The idea behind the model is that when consumers know that there is a promotion coming they might postpone the buying of the product. One of the aspects that receives increasing attention in the promotional modeling in promotional expenditures. How much to spend on sales promotion relative to advertising was the topic of several researches done for the last 20 years.

CHAPTER-4 4.PERCENTAGE ANALYSIS:

4.1.1 Table showing the other brand for the customers: S.no 1 2 3 4 5 Total Brands Hilton Hyatt Grand Chola Le Merdian Fortune No Of Respondents 28 12 25 19 16 100 Percentage 28 12 25 19 16 100

4.1.1Chart showing the other brand for the customers:

60 50 40 30 20 10 0 Hilto 1 itc 2 Hyatt 3 fortune 4 Le merdian 5 Percentage Respondents

INFERENCE: From the above table it is inferred that out of 100 respondents, 28% people for Hilton, 12% people for Hyatt, 25% people for Grand Chola, 19% people for Fortune and 16% people for le Merdian have decided as their Best brand.

4.2.2 Table showing the Attributes of the Respondent: S. No 1 2 3 4 Total Attributes Excellent Exceptional Mastery Acceptable No Of Respondents 38 22 40 10 100 Percentage 38 22 40 10 100

4.2.2 Chart Showing the Attributes of the Respondents:

Respondents

1 Highly satisfied 2 Satisfied 3 Neutral 4 Average

INFERNCE: From the Above tabl ,the Attributes from the respondents is listed Below: Excellent= 38% Exceptional= 22% Mastery = 40% Acceptable =10%

4.3.3 Table showing the Buying level Of the respondents: S. No 1 2 3 4 Total Buying Level Very rare Rare Never Always Respondents 18 40 23 19 100 Percentage 18 40 23 19 100

4.3.3 Chart Showing the buying level of Respondents:

100 90 80 70 60 50 40 30 20 10 0 Highly satisfied 1 Satisfied 2 Neutral 3 Average 4

Percentage Respondents

INFERENCE: From the above table , it is inferred that Very Rare of 18% people ,Rare of 40% people , Never of 23% people , Always of 19% people is going to the hotel for their Entertainment, Business Talk and Recreation.

4.4.4 Table Showing the Chance Of Going Other Brand:

S. No 1 2 Total

Chance Yes No

Respondents 41 59 100

Percentage 41 59 100

4.4.4 Chart showing the liking of other brand of the Respondents:

70 60 50 40 30 20 10 0 28 28 3 Neutral 2 Satisfied

INFERENCE: From the above table , it is inferred that 42% of the people will not go for other brands whereas 52% of the people will go for other brands for their use.

4.5.5. Table showing the Satisfaction of Reseda: S. No 1 2 3 4 5 Total Agreement Highly satisfied Satisfied Neutral Average Dissatisfied Respondents 18 26 10 19 7 100 percentage 18 26 10 19 7 100

4.5.5 Chart showing the Satisfaction of the respondents:

60 50 40 30 Respondents 20 10 0 Highly satisfied 1 Satisfied 2 Neutral 3 Average 4 Dissatisfied 5 Percentage

INFERENCE: From the above table, it is inferred that people with 18% of Highly Satisfied, 26% with satisfaction level , 10% of neutral , 19% of average and 7% of people are dissatisfied.

4.6.6 Table Showing the Value of the Brand:

S. No 1 2 3 4 5

Agreement Much better Some what About The Same Some What Worse Much Worse

Respondents 31 25 10 13 21 100

Percentage 31 25 10 13 21 100

4.6.6 Table showing the value of the Respondents:

100 90 80 70 60 50 40 30 20 10 0 Satisfied Highly satisfied

Percentage Respondents

Neutral

INFERENCE: From the above table , it is inferred that the brand value is differed with people. 31% of people with much better, 25% of people with some what better, 10% of people with about the same, 18% of people with some what worse and 21% people with much worse.

Dissatisfied 5

Average

4.7.7 Table Showing the Experience Of the Customers:

S. No 1 2 3 4 5 Total

Agreement Highly satisfied Satisfied Neutral Average Dissatisfied

Respondents 12 34 48 6 0 100

Percentage 12 34 48 6 0 100

4.7.7 Chart showing the Experience of the respondents:

Respondents

1 Highly satisfied 2 Satisfied 3 Neutral 4 Average 5 Dissatisfied

INFERENCE: From the above table, it is inferred that the Experience of the respondents such as 12% for highly Satisfied , 34% of Satisfied, 48% of Neutral, 6% of Average and 0% of Dissatisfied is calculated from the above information.

4.8.8 Table Showing The taste Of the Brand:

S. No 1 2 3 4 5 Total

Agreement Highly satisfied Satisfied Neutral Average Dissatisfied

Respondents 28 50 12 4 6 100

Percentage 28 50 12 4 6 100

4.8.8 Chart showing the taste of the Respondents:

Dissatisfied

Average Respondents Percentage Satisfied

Neutral

2 1

Highly satisfied 0 20 40 60 80 100 120

INFERENCE: It is inferred that from the above table that, 28% of the Respondents with High level Satisfaction , 50% of the respondents with Satisfaction , 12% of the Respondents with Neutral, 4% of the respondents with Average and 6% of the Respondents with Average level likes the Taste.

4.9.9 Table Showing the Response Of Price:

S.No 1 2 3 4 Total

Agreement Double Ok Ok Not Acceptable No Comments

Respondents 20 65 7 8 100

Percentage 20 65 7 8 100

4.9.9 Chart showing the Response of the Price:

Respondents

1 Highly satisfied 2 Satisfied 3 Neutral 4 Average

INFERENCE: It is inferred that Respondents of 20% are double ok with the Price, Respondents of 60% are ok with the Price. Respondents of 7% are not Accepting the Price. And 8% of Respondents is telling No comments .

4.10.10 Table Showing the Perception Of the Customers: S. No 1 2 Total Agreement Yes No Respondents 48 52 100 Percentage 48 52 100

4.10.10 Chart showing the Perception of Respondents:

60 50 40 30 20 10 0 Respondents Percentage 1 Highly satisfied 2 Satisfied

INFERENCE: From the above table it is inferred that 48% of the people is having the Good Perception whereas 52% of the Respondents is having the other Perception.

4.11.11 Table Showing the Thinking Level of Customers: S. No 1 2 3 4 Total Thinking Level Feeling Great Feeling Good Feeling Better Feeling Bad Respondents 14 45 26 15 100 Percentage 14 45 26 15 100

4.11.11 Chart showing the Perception of Respondents:

Chart Title
50 40 30 20 10 0 Highly Satisfied satisfied 1 2 Neutral 3 Respondents Percentage

Average 4

INFERNCE: From the above table it is inferred that thinking level of the Respondents is shown. 14% of the the Respondents are feeling good. 45% of the Respondents are feeling good. 26% of the Respondents are feeling better and 15% of the Respondents are feeling bad.

4.12.12 Table Showing the Rating of the Brand: S. N0 1 2 3 4 5 Total Rating 100-80 80-50 50-30 30-20 Below Respondents 48 20 15 12 5 100 Percentage 48 20 15 12 5 100

4.12.12 Chart showing the Rating Performance of Respondents:

Respondents

1 Price 2 value 3 Service 4 Variety 5 Taste

Inference: From the above table it is inferred the Rating for the Brand by Respondents is carried out. They are Respondents of 48% = 100-80 Respondents of 24% = 80-50 Respondents of 13% = 50-30 Respondents of 12% = 30-20 Respondents of 3% = Below

4.13.13 Table Showing the Motivation Aspect of the Customer: S.No 1 2 3 4 5 Total Motivation Factor Price value Service Variety Taste Respondents 4 28 48 16 8 100 Percentage 4 28 48 16 8 100

4.13.13 Chart showing the Motivation Fact of Respondents:

50 45 40 35 30 25 20 15 10 5 0 Price 1 value 2 Service 3 Variety 4 Taste 5 Respondents Percentage

Inference: From the above table it is inferred that the Motivation Factor which induces respondents are analyzed. Respondents of 4% will go with Price. Respondents of 28% will go with Value. Respondents of 48% will go with Service. Respondents of 16% will go with Variety. Respondents of 8% will go with Taste.

4.14.14 Table showing The Influence Factor Of Customers: S. No 1 2 3 4 Influence Fact Enjoyable Affordable Satisfaction No Way Respondents 25 38 40 7 100 Percentage 25 38 40 7 100

4.14.14 Chart showing the Influence Factor of the respondents:

50 40 30 20 10 0 Great 1 Good 2 Not good 3 Bad 4 Percentage Repondents Repondents Percentage

INFERENCE: From the above table it is inferred the influence factor in which people will decide to go for the Brand is 25% Respondents on Enjoyable,38% Respondents on Affordable,40% respondents on Satisfaction ,7% respondents on No Way.

4.15.15 Table Showing Mindset Of the customers:

S. No 1 2 3 4 5 Total

Thinking Quality Taste Universality Value Service

Respondents 18 23 30 10 14 100

Percentage 18 23 30 10 14 100

4.15.15 Chart showing the Mindset of respondents:

90 80 70 60 50 40 30 20 10 0 Great 1 Good 2 Not good 3 Bad 4 Very Bad 5 Percentage Repondents

INFERENCE: From the above table it is inferred that the Respondents will go for any brand whatever they think In their Mind. The calculation is Below: Quality=18% Taste=23% Universality=30% Value=10% Service=14%

4.16.16 Table Showing the Recommendation of Customers: S. No 1 2 Total Sayings Yes No Respondents 64 36 100 Percentage 64 36 100

4.16.16 Chart showing the Recommendation level of Respondents:

1 Great

Repondents Percentage

INFERENCE: From the above table , it is inferred that Recommendation of the Brand will be done by the Respondents. 64% of Respondents will recommend whereas 34% will not recommend.

4.17.17 Table Showing feelings Of the Customers: S.No 1 2 3 4 5 Total Feelings Great Good Not good Bad Very Bad Repondents 13 41 33 12 9 100 Percentage 13 41 33 12 9 100

4.18.18 Chart showing the feelings of the Respondents:

Repondents

1 Great 2 Good 3 Not good 4 Bad 5 Very Bad

INFERENCE: From the above table it is inferred that the feelings of the Respondents will Decide the Sales promotion For the brand. If they feel great or good, Sales promotion will be good. Otherwise there will not be any kind of Sales Promotion

CHAPTER -5

FINDINGS: Sales promotion is best tool to know whether customers like the product or not Customers is looking for the qualities what are available with the product. The value of sales promotion is decided in what way we promote the product. Most of the customers are satisfied regarding the benefits offered by the company. Most of the customers are highly satisfied of the service offered by the company. Sales promotion can only place our product in the market and it will make the people Customers will be always going for offers, gifts, etc.

QUESTIONAIRE

SALES PROMOTION IN HOTEL INDUSTRY

SOCIAL:

Age:

Sex:

Occupation:

Income bracket:

Marital status:

BRAND NAME: 1.What best brand names can you remember: Hilton Hyatt Grand Chola Le Merdian Fortune

BRAND IMAGE: 2.What attributes are seen from this RESEDA? Excellent Exceptional

Mastery Much More than Acceptable

BRAND LOYALTY: 3. How often do you go for RESEDA? Rare Very Rare Never Always

4. Will you take the chance of tasting another brand ? Yes No

5. How satisfied are you with your brand of RESEA? Highly Satisfied Satisfied Neutral Average Not satisfied

6. Would you recommend the RESEDA to others? Yes No

BRAND POSITION: 7. How satisfied are you with the quality? Much better Somewhat better About the same

Somewhat worse Much worse

8. How satisfied are you with the value? Highly Satisfied Satisfied Neutral Average Not satisfied

9. How satisfied are you with the approaching experience? Highly Satisfied Satisfied Neutral Average Not satisfied

10. How satisfied are you with the usage experience? Highly Satisfied Satisfied Neutral Average Not satisfied

11. How satisfied are you with the taste experience? Highly Satisfied Satisfied Neutral Average

Not satisfied

12. How satisfied are you with the price? Ok Double Ok Neutral Not Acceptable Not satisfied

PERCEPTION: 13.Have you heard of this brand of RESEDA: Yes No

14. What do think of it? Feeling Great Feeling Good Feeling Better Feeling Bad

15. How would you rate this? 100-80 80-50 50-30 30-20 Below

MOTIVATION: 16.What motivates you to buy this brand of RESEDA: Price Value Service Variety Taste

ATTITUDE:

17. What needs could influence you in going to RESEDA: Enjoyable Affordable Satisfaction Other Reasons

PERSONALITY:

18. What types of associations first comes into mind, when you think of this brand of RESEDA: Quality Taste Universality Value Service

19. How do you feel after entertained with RESEDA? a. Great b. Good c. Not satisfied with the arrangement of products d. Not satisfied with the promotional offers available in the store e. Not satisfied with the range of products