Friday, September 21, 2012

Ginger Hotels - Marketing Case

Ginger is an Indian hotel chain within the Tata Group under a category called "Smart Basics Hotels". It has been a pioneer in the high quality- affordable price segment in India. In an Indian market without a big promotional budget, Ginger hotels have managed to be immensely successful due to their unique value proposition that appeals to the budget-class. Here are five things about their value proposition that make them successful.
1. Low-Cost travel integration: Ginger hotels integrates seamlessly with low cost airlines and low cost modes of travel thus filling the gap of low-cost high quality stay in this sector. 
2. Location: Ginger hotels are located mostly near railway stations (a cheap mode of inter state travel) and are located in cities with active business or tourism.
3. Lean philosophy: Ginger hotels maintain a low amount of staff most of which is outsourced. This is successful since the hotel does not offer room service except for basic tea and coffee making. For food, the guests can dial-a-meal. This helps in keeping costs low.
4. Basic Amenities: Ginger hotels does provide an ATM service, gym, WiFi, vending machines and self-service restaurants. Thus despite a lean structure they provide basic amenities and manage to keep standards high.
5. Branding: Ginger, the brand is very fresh, clean and simple. For a hotel brand it is very apt and gives a feeling of newness expected by the emerging budget-class in India. They have successfully built a brand relying on regional advertising without any national level campaign. Another aspect of their brand strenght comes from their holistic value. They are sensitive to disabled with the last room in the hotel specifically designed for physically challenged.

#Success: The brand Ginger has achieved an occupancy of more than 80% and remains a very successful hotel chain in India.