Saturday, December 27, 2014

SMART BASICS Strategy Ginger Hotels

Introduction: Ginger’s chief differentiator is the concept of Smart Basic

The Ginger Hotels are built around a unique concept that provides facilities to meet the key needs of today's traveler, at surprisingly affordable rates. They have created a new category in the domestic hospitality landscape, while giving a major fillip to Indian tourism and other ancillary industries. The primary objective behind the launch of these hotels is to provide a superior product offering and consistent experience to travelers, beyond the present offerings in the industry.

The Smart Basic Concept

Smart Basics concept was co-created by Ginger with the help of the Renowned Management Guru CK Prahlad. Smart Basics is a philosophy of providing intelligent, thought-out facilities and services at a value pricing. It reflects the new emerging lifestyle in which people want to get things done quickly and efficiently. Smart Basics provide a value proposition of a different kind. It represents a Next Generation category that signifies Simplicity, convenience, informality, style, modernity and Affordability. The acceptance of this concept has been extremely high as a majority of the travelers focus on the offerings inside the room, such as a posture pedic mattress (back supporting) complemented with duvets, LCD television, tea / coffee maker, mini fridge, wi-fi, attached bathroom with 24-hour hot and cold water, etc. All these basic services are offered in a ‘smart’ format. The newer Ginger hotels have improved rooms with vibrant colors and limited room service. These changes are being effected across all properties.

The hotels operate with skeletal staff but are highly process oriented so that most of the necessities of the customers are taken care. Some of the services are outsourced but available to the customer on call. As the tagline says “Please Help Yourself", most of the services are self service ( to reduce cost) including check in. The trick is to be process driven so that customers will just have to follow the process and things will be taken care by the process.That also gives the company an option to charge for specific services demanded for the customers.

Strategies behind Gingers expansion and growth

The price proposition – Cost cutting

Ginger, which operates in the three-star category, prices its rooms competitively -- single rooms cost Rs 999, while a double room won't set you back by more than Rs 1,799, inclusive of taxes. And the tariffs are the same whether you're in Bangalore or Bhubaneswar, and whether it's January or June.

That's different from how another newcomer in the budget hotel category, the Red Fox chain run by Krizm Hotels, operates. Single rooms at the Hyderabad, Jaipur and Delhi properties of the chain will cost about Rs 1,500. But Ginger is  flexible about the pricing.

The reason behind cost cutting is that since labour in India is relatively cheap, it makes sense to offer some limited services and charge a little extra. Ginger  believes that the young traveller doesn't mind doing things on his own and so he'd rather have price as a USP. Which is why even food is affordable(there's no room service): Rs 80-150 for the buffet.

You can Download this 09 page Complete Project Report title Smart Basic Concept Adopted By Ginger Budget Hotels (Complete Analysis) for FREE from the Below Link.

The Project will cover the following case analysis topics:
·        Strategies behind Gingers expansion and growth
·        Comparison of  Ginger’s strategy with its competitor Red fox
·        Target customer group
·        Swot Analysis of Ginger group
·        Challenges to the GINGER group of hotels
·        Conclusion of the case study
We Hope the above detailed project report will help you in getting better understanding of the concepts and also provide you better ideas for your own project completion.

Have a Great Day!!!

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