HOTELS

CORE PRODUCT
At the very center is the core product which satisfies the basic need of the consumer. The
core product in the hotel industry is ACCOMODATION. The role of Hotel International
is to provide basic accommodation facilities. Like a bed for the night and a room with a
bathroom.

FORMAL PRODUCT

When consumer’s expectations grows synchronized with increased competition, the

marketer offers some tangibility to the existing core product, that is, some more features.
Consumers prefer to pay more for these additions and the marketers have more to offer
than the competition.

Hotel International has to provide some additional features like:

Hygiene: It comes next to the basic function of accommodation. Hygiene plays a

very important role in the status of a hotel. An unhygienic hotel will never be able to
attract lot of people, especially if it has to attract a lot of people from foreign
countries where the hygiene conditions are top notch.

Room Service: When people go to hotels, they would expect good and prompt
room service. This means, when they order food or ask for any service, a hotel that
provides it promptly will have a great edge over the other hotels.

Price: The price of the rooms should be such that both the rich and the middle class
people can afford them. Not everyone can afford a very expensive room and also not
everyone will like to stay in a room that does not have some luxurious facilities.

Etiquettes: The people who come in contact with the customers, that is, the
reception people, room service people, and waiters, all have to be trained well to
 behave in a manner that pleases the customer. They should be civilized, cultured and
polite.

Laundry services

Food and Wine:The food should be of good quality and should be prepared in
hygienic conditions.

AUGMENTED PRODUCTS
With further higher expectations of the customer- again synchronized with intense
competition- marketers offer more and more intangible features. All the extra things
provided are service oriented. In the case of Hotels the augmented products include:

Facilities In Room :
Ø CTV Satellite channels
Ø International direct dial
Ø Refrigerator (deluxe rooms and suites)
Ø Bathtub (executive rooms and above)
Ø Running hot and cold water.

Services Provided :
Ø Ayurvedic Massage Center and steam bath
Ø Beauty Parlor
Ø Florist
Ø 24 HRS Room Service
Ø 24 HRS Coffee Shop
Ø Airport Transfer
Ø Ample Car Park
Ø Safe Deposit Lockers
Ø Travel Assistance
Ø Currency Exchange
Ø Same Day Laundry
Ø Direct Dialing
Ø Cable TV
Ø Health Club
Ø Banquet Halls
Ø Back Water Cruises and Package Tours
Ø 24 hrs Check Out
Restaurant/Bar:
1. Variety Restaurant (Indian, Tandoor, Kerala, Continental and Chinese dishes.)
2. 24 hour Specialty Coffee Shop.
3. Family Bar (daily happy hours.)

Promotional Activities:
Ø Regularly conducting Food festivals.
Ø Official host for Motor shows, Fun Carnivals, Fashion shows and other
Fairs

Basis of charging room rate

24 hour basis

On this basis, a rate is charged for a room taking the time of arrival into account.
E.g. if the person arrives at 0900 hours on the 6th September a new day will start. the
guest will be charged for one day only for the next 24 hours i.e. till 0900 hours on 7 th
September. This can be very confusing for the receptionist, as she has to keep a track of
arrival times of all the guests. This basis can be adopted in transit hotels as the guests
cannot be expected to arrive and depart at a fixed time and also the stay is short in transit
hotels.

Room night hotels

In this case, a person is charged for the no. of nights he spends in the hotel.
However if he checks in during the day and checks out during the night, he will be
charged only for one night only. The person checking out should do so before dinner time
or before the night out or he will be charged for extra time. None of the hotels preferthis
system of charging in present times.

Check in and check out basis

Most hotels prefer to have a fixed check in and check out time. Normally,
accepted check out time is 12 noon. This will be influenced by transport factor. So in
some cases check in and check out time may differ. There are several advantages in
having a fixed check in and check out time for guests as well as for the hotel. The guest
knows that he has to check out by certain time or he may be charged extra.
The receptionist knows how many rooms are occupied and how many are
available for sale. The housekeeping department will be aware of the number of rooms
they will have to service as check out room. So better co-ordination is possible between
the various departments to prepare for incoming guests. The hotel can also earn more
revenue from rooms by selling the room more than once to different guests

Types of Accommodation in India

On The Basis Of Standards:
Like most of the countries in world, India also has hotels divided in different
categories depending on their location, facilities, infrastructure, and amenities provided.
All the star hotels in India are government approved with continuous control on the
quality of services offered.

Five star hotel

The most luxurious and conveniently located hotels in India are grouped under Five Star
Deluxe Hotel Category. Five Star Deluxe hotels in India are globally competitive in the
quality of service provided, facilities offered, and accommodation options. These hotels
are located primarily in metropolitan cities like New Delhi and Mumbai and major tourist
destinations like Jaipur
Agra, and Goa. These are top of the line hotels located mostly in the big cities. These
hotels provide all the modern facilities for accommodation and recreation matching
international standards in hospitality. Many of these hotels are situated in the Central
Business Districts of the metropolitan cities or near the centers of transportation
providing exceptional value for the business travelers.
Four Star

A rung below five star hotels, these hotels provide all the modern amenities to the
travelers with a limited budget. Quality of the services is almost as high as the five stars
and above categories. These kind of hotels are there for the travelers with a limited
budget or for the places which might not getting the tourist traffic associated with larger
cities.
Three Star Hotels

These are mainly economy class hotels located in the bigger and smaller cities and
catering to the needs of budget travelers. Lesser in amenities and facilities, these hotels
are value for money and gives good accommodation and related services on the reduced
price. Services would be the stripped down version of higher categories of hotels but
sufficient to fulfill your basic needs.
Two Star Hotels
These hotels are most available in the small cities and in particular areas of larger cities.
Catering to the backpacker tourist traffic, these hotels provide all the basic facilities
needed for general accommodation and offers lowest prices.
One Star Hotels
The hotels with most basic facilities, small number of rooms, and location in the far flung
areas are grouped under One Star Hotel category. These hotels are best when you are
looking for cheapest available accommodation option (apart from camps and hostels).
In a nutshell these are the various requirements according to which a hotel is graded
On The Basis Of Nature:
Heritage Hotels

Heritage hotels in India are best if you are looking for sheer elegance, luxury, and royal
treatment. They are not just another accommodation options but tourist attractions in
themselves. Exquisitely designed and decorated, meticulously preserved, high standards
of service, and ethnic cultural motifs helps the tourists get the complete experience of an
India that otherwise exists only in the history books.
e.g. The Lake Palace Hotel, Udaipur

Beach Resorts Hotels

Peninsular India bounded by Arabian Sea, Bay of Bengal, Indian Ocean and the two
emerald archipelagos of Lakshwadeep and Andaman and Nicobar have a long coastline
of around 7500 km, offering an amazing array of beaches, some popular, some not so
well known.

Wildlife Resort Hotels

A wildlife tour is incomplete if you don’t actually live in a forest for a few days. Imagine
living in a rest house or a tent the midst of the dense wilderness, and waking up to the
twittering of birds, or maybe the roar of a lion! Day trips alone are certainly not enough
to show you the true majesty of the wild, so why not try this too?

Government Approved Hotels

These are the hotels, which might not have applied for star categorization or small
enough to find them in the list. Many of the wildlife resorts, lodges, and hostels are
government approved providing a minimum level of accommodation facilities at far off
places.

Guest houses
These provide the minimum facility of food &beverages along with accommodation. The
standard of accommodation is not as good as a hotel. The menu offered is not as
elaborate as a hotel or similar establishments. Services are not very professional or
specialized. Expenses are very much less in comparison to the above mentioned other
establishments. Generally people who can’t afford the expenses or the luxuries of higher-
class establishments make use of these facilities.

Dormitories

Dormitories mean a building containing one or more accommodation units and may
contain shared kitchen facilities, for use by students enrolled at a post secondary
institution. Dormitories are set up to offer a good environment for studying, and to
experience independent citizen life. The dormitory rooms are furnished with beds, study
tables, chairs, washstands, and telephones. Further, dormitories are equipped with
lounges, laundry rooms, and kitchenettes. Students, therefore, can start studying only if
they bring their personal belongings. A shared building (Life Center) in each area of the
dormitories include a restaurant, public bath, shops, barber shop, and beauty salon.
Holiday Villages
Holiday villages are usually large, self-contained resorts and ideal for people who want a
lively holiday with children's clubs, organized activities and evening entertainments laid
on.Many holiday villages offer children's clubs, run by qualified English speaking staff,
for babies through to late teens. These are invaluable for families, as they not only give
children a chance to meet new friends and have fun, but also give adults some time off
too.However, though standards are improving markedly, somehow this is never a really
smart option. Accommodation, unless rated at least four or five stars, can be cramped for
example.

Type of Clientele:

Suite/Boutique Hotels

These hotels feature guest rooms with a living room, a parlour area, and a bedroom. A
compact kitchenette may also feature as a part of the room. These hotels are frequented
by families who are locating their residences due to change of job till such time when a
permanent furnished residence is made available. Vacationing families who prefer the
privacy and convenience of a non standard hotel accommodation also frequent these
hotels. This type of accommodation is also very popular with professionals such as
lawyers, accountants and executives who are used to entertaining frequently.

Residential Hotels

They provide long term or semi-permanent accommodation for many single people in
urban or suburban areas. It may provide daily house keeping, telephone, front desk and
uniformed services at the option of the user for which he may have to pay extra.

Bed and Breakfast Hotels

The owner or the host/hostess usually lives on premises and is responsible for serving
breakfast to the guest. Breakfast service may range from a simple continental breakfast to
a full course meal. Most Bed and Breakfast Hotels offer lodging and limited food service,
as the name implies breakfast only. The price of a room at this type of hotel is lower than
full service hotels and the type of clientele frequenting this type are junior executives of
mid range companies who do not have a residence in the area of work.

Time Share and Condominium Hotel

Time share properties typically involve individuals who purchase the ownership of
accommodation for a specific period of time usually one or two weeks a year. These
owners then occupy the unit during that time. During the rest of the year, the unit is
rented out by the management as a functioning of a hotel.
Condominium hotel is similar to the time share hotel, the difference being that they have
only one owner instead of multiple owners. The owner informs the management when
he/she wants to occupy the unit.
Time share and condominium owners receive the revenue from the rent acquired from
their units and then pay the management company a fee for advertising, rental, house
keeping and maintenance services.
Casino Hotel

Hotels with gambling facilities may be categorized as a distinct group – Casino Hotels.
These hotels attract guest by promoting gambling and entertainment by way of floor
shows, competitions, headliner activities etc. they may also offer charter flights for VVIP,
special guests etc. who spend over a certain amount. They operate 24 hours a day, 365
days a year.

Conference Hotel

Specifically designed to handle group meetings. Most full service conference centers
offer overnight accommodation because meetings are their focal point. Conference
centers play great emphasis on providing all the services and equipment necessary to
ensure a successful meeting. For e.g. technical assistance, high quality audio visual
equipments, business service centers, flip charts etc.
Located outside metropolitan areas and may provide extensive leisure facilities, like golf
course, indoor and outdoor swimming pools, fitness centers, jogging and hiking trails etc.
these canters charge a consolidated price per person depending on the volume of
business, which includes attendee guest rooms, meals, meeting rooms, audio visual
equipment and other related services.

Convection Hotels

Where exhibition held by a particular trade or industry where all the

companies/organizations involved with that particular trade, pool their resources, get
together and display their product/ service to potential buyers in the market who are
invited to see, sample the product and place their orders.
It is business promotion on a very large scale. They often have 50,000 square feet or
more exhibit halls, plus ball rooms and meeting rooms. Most of these properties house
dinning facilities ranging from self-service cafeterias and restaurants to elaborate formal
dinning rooms.
Alternate Lodging Properties
Camping grounds and mobile home parks are some what like hotels, since they involve
rental of space for overnight accommodation. This concept is very popular in northern
European and U.S.A areas, where families own/hire camping trailers or mobile homes
which can be attached to their cars. They drive over on weekends to isolated lake sides
and mountain sides.

As Per Architectural Design:

I) Palace Hotels – These hotels are built to specifically designed so as to

resemble royal palaces. Eg.:- The Taj Mahal Bombay.

II) Executive Hotels – These rooms have an office like functional appearance. They
also have the basic office accessories and equipment.

III) Commercial Hotels – These feature luxurious surroundings and the modern sky
scraper structure to create a classy effect.

IV) Atrium Hotels – The architecture of these buildings resemble a hollow square
with all the guest rooms overlooking the central lobby. Natural light is supplied by the
sky roof. Eg.:- The Oberoi, The Marine Plaza.

V) Hotels in Mixed use Development – These are hotels in buildings which also
encompass shopping malls, office and apartment complexes or theatres. Eg.:- Hotel
Aurora Towers, Pune.

VI) Adaptive Reuse Hotels – These are hotels previously designed for other
purposes and now generated for hotel use. Eg.:- Lake Palace, Udaipur.

VII) Tower Hotels – In certain cities and beach resorts the top floors of high rise
buildings are devoted to 5Star service plus accommodation often served by a private
elevator.
VIII) Cabanas, Villas and Bungalows – These are found at resorts as free
standing units which form a part of the resort complex. These are self sustained
individual units. Eg.:- Taj Holiday village, Goa The Leela Beach Resort, Goa.

IX) Lodges – These are present at ski or country resorts featuring stone or wood fire
places.

X) Inns/ Auberges – These suggest small and quaint pre 20th century architecture.

XI) Landmark restoration properties/ Heritage Properties – These are

famous hotels beyond an established age restored and still in use.

According to Size:

In general the size of the hotel plays a critical role in the style and extent of guest
services. As a general rule, smaller hotels are able to offer a more personalized service
where as larger hotels may offer a wider range of services as a result of a greater
profitable room base and economy of scale.
Given below are the International rankings
- 1 to 150 Rooms – Small
- 151 to 350 Rooms – Small
- 351 to 700 Rooms
- 701 to 1400 Rooms
- 1401 to 5503 Rooms

Lodging and Boarding Options:

Paying Guest – Sometimes boarders are taken by families to supplement their incomes,
on single occupancy or twin sharing basis usually comprising of students, single working
men/ women. The basic amenities such as bed and bath are provided by the family. The
accommodation has a separate entry to ensure privacy.
Holiday Homes – Owned and managed by companies or leased by companies where by
the accommodation is offered to employees at a very subsidized rete.

Serai – These are Indian counterparts of European Inns owned by families. The meals are
prepared by the families themselves.

Dharamshalas/ Sanitariums – These are owned by religious institutions or non profit

organization where the rates are subsidized or free.

Hostel Accommodation – Availed by single working men/ women or students. These

provide clean and low priced accommodation along with certain recreational facilities.
The meals can either be had on or outside the premises. Eg.:- YMCA/ YWCA

Dak Bungalows – Situated in forests, hill stations and remote villages. These were
originally constructed by the British and were a source of recreation during the hot
summer months.

Circuit Houses – These are modestly furnished or have 5Star accommodation facilities
and are present in the city to accommodate government officials. Eg.:- Sahyadri Guest
House.

Boatels – Very luxurious floating hotels having very high standards and prices. (North
America and Europe)

Rotells – Hotels on trains which are lavishly decorated and the carriages are usually
handmade restored and equipped with the most modern and lavish luxuries. Eg.:- The
Orient Express in Europe and The Palace of Wheels in India.

Luxury Liners – These cater to the top segment and high income group people.
FAME ADLABS

THE 8 P OF FAME ADLABS

PRODUCT
Service Product / Service Package:

The Core Competency here is SCREENING OF MOVIES. The supplementary products /

services are enormous like the Video Games Parlour & the Food Court. Good options for
food like the Cafeteria where you get food made in hygienic conditions. The ambience is
pleasant with centrally air conditioning, well-illuminated layout. FAME ADLABS is well
known for its DOBLY DIGITAL SOUND.

PRICING

FAME uses differential or flexible pricing for its Multiplex theatres.

Rates:
In the multiplex averages between Rs. 90 & Rs.120 depending upon the box office
performance of the movies screened.

The prices are popularly estimated to be extremely fair prices for the complete
entertainment experience. Reasonable pricing is possible thanks to the government
policies regarding the partial wavier on the extremely high entertainment tax that
multiplex enjoy.

PLACE

It is located at Andheri, Mumbai. From the point of view of public transport it’s closest to
Andheri station. From this station one has an option of hiring a rickshaw, taxi or local
BEST buses.

However, all said and done, there is no denying that FAME is off the beaten track for
most Mumbaikars. Since it is located in the suburbs of city it is not easily accessible and
hence loses out here.

PROMOTION

Initially hyped, FAME attracted a lot of press attention and subsequently the public
flocked to Andheri to witness the spectacle. However after the initial hype died down
FAME did not take a more aggressive role in promotion but instead took a back seat.
FAME beat IMAX by offering its clientele innovative methods of buying tickets via the
MOBILE PHONES (SMS) that completely excluded the requirement of the customer to
visit the theatre before the actual movie experience.

The most effective way of promotion is the daily advertisements in the paper, which
promote the movie, which is currently being screened in the theater, and informs the
public.

PEOPLE

Courteous and well-dressed people characterize the Multiplex.

The employees are highly motivated and trained and exude an aura of energy and
vibrancy as they perform their duty with a smile on their lips and a spring in their step.

Whilst actually experiencing the movie, the sin-goers around us are just as important as
the employees that escort us to the theater. Therefore FAME, which attracts the upper
strata of the society, SEC A++, is a very conducive atmosphere and a pleasant
environment to enjoy a movie with the entire family.

PHYSICAL EVIDENCE

Ambient factors
• Air conditioning

• Excellent ventilation

Design factors

• Uniform appearance

• Extensive parking lot

• Spacious interiors

Social factors
• Well dressed employees

• Courteous

• Genial

• Elite and up market crowd

 • Family atmosphere

PROCESS

The process is a sequence of actions to deliver the service to the customer. In this case the
following is the process followed by FAME

The customer arrives to FAME by car and first goes to the ‘pay n park’ to park the car.

The customer then moves on to the ticket window to purchase the ticket for the movie he
is interested to watch.

Then the customer enters the building. Here the usher at the door checks for the tickets.

Then the customer will move on to the screening area and watch the movie.
In the interval the customer will mostly come out to eat or drink something from the
cafeteria.

The customer goes back to the screening area to continue the movie.

PRODUCTIVITY & QUALITY

Undoubtedly, the FAME caters to the crème de la crème of the crowd in the
Mumbaikars that patronize the theater. Therefore, these people are treated to the best of
quality and productivity by the employees. The customer is the King here.

The service for the multiplex goes as far as actually delivering the tickets to the client’s
home so as to limit the customer’s trouble in actually booking the tickets in advance. The
theater, keeping in mind , its limited accessibility is very considerate towards the people
that determine its success.
 8 P’s of Transport
1. Product Elements
Here, we identify the core product and the supplementary products offered by
Rahul Transport that results in Perfect Service Performance, thus creating value
for customers. We have identified the following:

Core Road Transportation

Supplementary Services Warehousing, Packaging, Loading &
Unloading, Payment Handling, Reverse
Logistics, and Consultancy

The name Rahul Transport itself mentions the core service of the company i.e.,
Transporting Goods from one place to another.
Ever since Liberalisation in 1991, the company felt the need to tune its services
to make it more customer friendly and provide more value added solutions to its
clientele. As a result, the company evolved from a transportation company to a
complete end-to-end logistics company and added newer services, which would
satisfy consumer needs.
Warehousing includes
• Warehouse and Inventory Management
• Order collection and Invoicing
• Return Goods Handling
Packaging includes:
• Survey and Estimation of effects to estimate packing and vehicle
requirements
• Packing as per client’s specifications
• Unpacking as per client’s specifications
Consultancy includes:
• Inward movement of raw materials
• Outward movement of finished goods
 • Movement of consumables and spares
• Information Management
• Load Consolidation and Optimization

As per the Industry, with regards to loading and unloading, there are set norms.
At the place of collection of goods, the party places the goods in such a place
from which they can be loaded on the vehicle. This is the responsibility of the
party. But, whether the party loads the goods on the truck or no solely depends
on the terms and conditions of the contract. As part of their supplementary
services, they also provide loading and unloading facilities to the client. In
Hindi this is referred to as Hamali.
Their competency is enhanced because of the fact of their self-owned vehicles,
which are at their beck and call and enhance speedy delivery of cargo.

2. Place and Time

Place and Time refers to how the service is going to be delivered, what time, the
methods and the channels used to deliver the service.
Place of Service Delivery – Rahul Transport has got 40 service outlets
throughout the 4 states of its operation. This allows any of its clients to drop into
any of the service outlet to request for a vehicle. For client convenience, these
outlets are located at prominent industrial and market locations. This helps the
company to obtain orders faster and execute them.

The channel they use to deliver the cargo depends on various factors. These are:
• Type of goods
• Final Destination
Type of Goods - If the cargo contains goods which can be overloaded onto the
truck, the company does not use it’s own vehicles. In such instances they
outsource the trucks because overloading affects the performance of their own
trucks. As a thumb rule they cannot refuse the client to overload a particular truck
because with certain products it’s not economically viable. For e.g.: Rice Gunny
bags.

Final Destination – If the cargo has to be delivered to a place, which is outside its
network, then the company out sources trucks. They cannot deny such an order
in the first place, because they do not want to dissatisfy their clients. They cannot
operate their own trucks outside their own network, because they do not possess
the required permits for other states.

Thus the channel they use to deliver the service depends on the above 2 factors.

Time of Service Delivery – For clients, it is sometimes important to get cargo

across from one destination to another quickly. In such cases if their truck is not
available, they immediately call for a market truck and ensure speedy delivery of
the cargo. The company makes sure that they deliver the cargo to the required
destination within the promised time period.
The company’s ‘on time delivery ratio’ is approximately 90%. The balance 10%
failure occurs because of external factors that are outside their control. External
factors such as strikes, calamities, accidents, political instability etc. The recent
transport strike tremendously affected the company. The recent ‘Kumbh Mela’ at
Nasik has also affected the service delivery of the company, thus increasing the
time taken to deliver the product efficiently.

3. Process

Customer approaches the company – The customer approaches the company

for the service that he requires. This is a type of service wherein customers either
enter into yearly contracts or just do a retail transaction. A retail transaction
would be wherein a customer would use the transportation service only once
based on the rates prevailing on that day in the market.
Contract customers – The customers prefer to enter into a contract with the
company, as in a contract the rates of transportation are fixed based on yearly
averages. So even the customers get benefit of not discussing or bargaining of
rates at every transaction. Also the customers get advantage of a lower rates in
times of peak season when the rates shoot up as the rates are fixed on supply
and demand basis in the market.
If the customer enters into a contract then the different formalities of the contract
viz. contract clauses, promised volume of business, fixing of rates based on
yearly averages, decision on area of operation; are decided.
Transaction process – Both the retail and the contract customers react with the
“Traffic Guy” who is the front line guy at any office of Rahul Transport. The Traffic
Guy is the person who handles the rates of transportation based on his
interaction with his sources in the market. He interacts with the transport market
and keeps himself updated about the prevailing market rates. When the retail
customers call him he gives them the prevailing rates.
He also looks after the availability of the trucks. As per the requirements of the
customer he checks if trucks are available and promises the customer the truck.
Using of self owned trucks or outsourcing – If the customer requires a
destination which is outside the company’s area of operation then the company
outsources the trucks. This means that the company uses trucks from its
attached fleet of 125 trucks. This is because as explained above the company
does not have the required permits for areas other than its area of operation.
Also based on the type of cargo company decides the mode. If the cargo
contains goods which can be overloaded onto the truck, the company does not
use it’s own vehicles. In such instances they outsource the trucks because
overloading affects the performance of their own trucks. Also overloading is not
based on the company’s decision, it is rather a customer’s choice. As a thumb
rule they cannot refuse the client to overload a particular truck because with
certain products it’s not economically viable. For e.g.: Rice Gunny bags
Sending of the Transport for loading – After deciding on all the above issues
the truck is sent to the company of the customer or loading of goods. The loading
charges are borne by the transport company or by the customer based on
contract. After the loading is over the ‘lorry receipt’ is made which is a document,
which contains all details about the goods. This lorry receipt is sent along with
the truck and is then stamped by the receiver of the goods. This lorry receipt then
becomes the ‘Proof of Delivery’. If such a transaction is on Pay on order basis
Rahul Transport driver also collects the payment on the deliver of the goods.
Thus this is the entire process of the delivery of the service. This service is not
very customer oriented and there is not much interaction between the customer
and the company on one to one basis. The interaction only happens at the rate
fixing stages and contract stages. The variation in the service can happen in
stages of ongoing transportation wherein the company might provide
warehousing facilities. Also the company may provide facilities like packaging
and unloading.
4. Productivity and Quality

Sometimes it happens that cargo has to be sent across to an unviable

destination for which there is no return cargo. In such instances, the company
uses the services of brokers. Brokers play a very important role in the
unorganized road transport industry in India. These brokers are local area
brokers and they have information on each and every truck that will pass their
area. These brokers provide Rahul Transport information on which trucks pass
through that area. Thus, Rahul Transport books space on that truck with the
broker. This saves the company a lot of time and effort in trying to reach unviable
destinations, which in turn affects the productivity of the company.
The company also takes good care of its trucks and ensures time-to-time
maintenance and checks. This usually happens when the truck is idle. Sometime
it so happens that when a truck has finished delivering its goods and the next
task begins the next day, then the truck driver uses this idle time to carry out
maintenance activities like checking for oil and the various other important
liquids, etc.
The company also ensures productivity by following optimal route planning. In
some cases, when the cargo is small and the destination is common, then the
company does not send a whole truck, but sends a smaller vehicle and also
manages to get cargo from other sources to deliver to the same destination. As a
result, the truck does not go half full, but rather goes fully loaded. This helps it
optimize its truck capacity. The various supplementary services that the company
provides has added to the quality of service delivery of Rahul Transport.
5. People
Customers usually assess the quality of the service by assessing the people who
provide the services. Thus, front office people play a vital role in winning a
customer. Thus, the way they interact and their communication is very important.
This all is true for service sectors in which they come in contact with many
individual customers on a daily basis.
In the case of Rahul Transport, they hardly have any walk in customers. Most of
their business is done on the telephone, where the client asks them to send a
truck to their warehouse or a particular destination. Hence, they do not come in
direct contact with any customer. But however, potential clients are handled by
the sales team and the various managers. Thus, they do not feel the need for a
highly impressive front office staff.
In a company like this, the role of the back-office becomes very important
because the efficiency of the service depends on these people. With a total of
250 managerial and operations staff, more than 85% of the workforce constitutes
the back-office staff.
To ensure maximum productivity, the company hires experienced personnel, who
know their task and do not have to undergo training. Thus, saving on training
costs.
Important constituents of the workforce are the drivers who can be called as the
executioners, as they are the people on the field delivering the service. Keeping
them happy becomes a very important task. As a result, they are given sufficient
monetary benefits, such as allowances, etc. to keep them satisfied. The company
does not over-burden the drivers with harsh delivery schedules, as they believe
this can cause stress and can result in accidents. The company also refrains
their drivers from alcohol consumption.
When it comes to the labour force such as the drivers, porters, etc., they are
hired from the ‘Mathadi Labour Board’. This is a union, which supplies
labourers to the road transport industry. Even though these labourers are
members of the board, they work for the company. The Union is just to
protect the interests of the workers.
6. Promotions and Education
Promotion & Education over here refers to informing, advising or encouraging
people to use a particular service provided through websites, brochures, TV
advertisements, magazines and word of mouth publicity.
In the case of the Indian Road Logistics Industry, which is highly unorganized,
there is no formal communication channel through which they promote
themselves. Rahul Transport too, does not use any formal channel to promote
itself. It solely depends on Word of Mouth publicity.
The company has a few brochures and pamphlets which provides a potential
client with information on the company and the various services that the
company provide. The brochures are very attractive and they portray the
impressive performance of the company.
The company also carries its name on all its truck in bright yellow. This is an
identifier and also carries out promotion to a certain extent.

7. Physical Evidence

This refers to any physical evidence that portrays the service quality of the
company.
As stated earlier, Rahul Transport is not a logistics company which comes into
contact with individuals, as a result the need for any physical evidence is not
really felt. The only physical evidence they have is their brochures and
pamphlets.
8. Price and Other User Costs
This refers to how the service provider minimizes the burden of cost on a
consumer.
In the land transport industry, there are two methods of purchasing the service.
They are:
• Simple Purchase
Simple Purchase is a normal purchase whereby a client can go to any fleet
operator and ask for the service. Over here the client has to bear the fluctuating
market rates that prevail. And the price of the service also depends on the
distance and the destination.
 • Contract Purchase
This is a method of purchase whereby the client enters into a contractual
agreement with a logistics company. This contract helps the client to get a fixed
rate and he does not have to bear the costs of market fluctuations. Moreover, the
client can also avail of certain supplementary services when they have a contract
with a logistics company.
With regards to Rahul Transport, more than 90% of its business comes from
Contract Purchase rather than Simple Purchase. They have very few walk-in
customers who purchase their service.
Pricing of the contract depends on lots of considerations. Some of the
considerations are:
• What is the consignment of goods?
• The value of the consignment.
• Destinations to which this consignment needs to be delivered.
• Frequency of delivery
• Expected Volumes
• Time taken to load or unload the consignment
• Place of Loading or Unloading
Taking all these factors into consideration, a contract is entered into with the
client. These contracts maybe annual, half-yearly or quarterly. In the contract a
fixed rate is decided for the delivery of the consignment. The client also gets
benefits of supplementary services such as loading-unloading facility,
warehousing facility etc.
When Rahul Transport uses its own fleet of trucks, the various costs that are
involved are broken down into two components – the fixed component and the
operating component.
Fixed cost component includes – Truck Capital cost + Finance Cost + Permit
Cost + Insurance Cost + Maintenance & Repairs Cost
The operating cost component includes – Diesel cost + Labour Cost + Labour
Allowance + Octroi Cost + Toll Cost + Loading & Unloading Cost (Hamali).
Both these components put together contribute to the cost of the product. From
the total cost, diesel cost contributes to around 55% of the cost.
As stated earlier, the company sometimes out sources the trucks to market
players and fleet operators. The price at which they provide the service fluctuates
on a daily basis. This price is dependent on the market supply and market
demand. Most of the time the cost of operating a market vehicle is lesser than
the company’s cost of operation. Thus, on some routes the company only
operates market trucks.
Sometimes due to environmental factors the costs of these trucks go up
marginally. Like for e.g., due to the recent Kumbh Mela at Nasik, the price of
market trucks went up by around 50% because their availability reduced. In such
cases, the company has to offer the client the service at the pre-decided rate and
has to bear the loss.
These are the various costs involved in delivering the service.
With this we cover the 8 P’s of Service of a service organization. – Rahul
Transport Pvt. Ltd. To understand the service of Logistics better, we have also
studied the service of an MNC – Maersk Sealand.
 8 P’S OF SERVICES MARKETING: RAJ TRAVELS
PRODUCT ELEMENTS

WITH RESPECT TO THE TRAVEL

BENEFIT MEANING
AND TOURISM INDUSTRY
1. CORE The fundamental benefit or service that Traveling
BENEFIT the customer is buying
2 BASIC Ticketing, hotel reservation
Basic, functional attributes
PRODUCT
3 EXPECTED Set of attributes/conditions the buyer Customer friendliness, good food
PRODUCT normally expects
Prompt services, comfortable and
4 AUGMENTED That meets the customers desires
convenient trip, spectacular sights,
PRODUCT beyond expectations
music
5 POTENTIAL The possible evolution to distinguish Totally customized tour packages, A
PRODUCT the offer grade service at every stage

The services a product offers consist of three levels.

The first level is that of the basic service package which includes core service, facilitating
services and supporting services. In the case of the travel and tourism industry, the core
services would include traveling, ticketing, hotel reservations, food services etc.
The second level is that of an augmented service offering where accessibility, interaction
and customer participation is given equal importance in delivering the service product.

Accessibility of Service
-N umber and skills of personnel
-Working hours and time used in performing various tasks
-Location of service outlet
-Exterior and interior of service outlet
-Infrastructure, hardware, documentation
-The number and knowledge of consumers simultaneously involved in the process

Interaction with service organization

-Interactive communication between employees and customers
Interactions with the physical and technical resources of the organization needed in
-
the service production process
-Interaction with other customers involved in the process.
Customer Participation
How well is the customer aware about the process of service delivery and his or her
-
role
-How well is the customer prepared to share information
-How well is the customer willing to share information or use the service equipment

The third level is that of the market communication of the service offering as in its
absence the augmentation service package does not have any relevance to the customer.

PLACE
Because of intangibility (from production to sales) of services, they cannot be stored,
transported and inventoried. Hence traditional distribution channels available for product
marketing like wholesalers and other intermediaries cannot be used. Even the retailing
cannot be an independent activity. Similarly, because of the inseparability, i.e., in case of
services production cannot be separated from selling, services must be created and sold at
the same time.
These two characteristics make the channel very short and direct. Most services are
distributed through direct sales. At best one agent or middleman can be added to it, like in
the case of insurance, travel agency, courier service, etc.
So we see that there is a little controversy regarding the distribution of services. There is
one school, which says that since the service cannot be separated from the producer of the
service, direct selling sales channel are the only method of distribution available for
services. The advantage of direct selling is that the service can be offered to the customer
at a lower cost. The other school partially disagrees with this theory and suggests that it is
possible to have intermediaries but the channel of distribution would be rather short and
simple as compared to tangible goods.

There are various distribution branches through which raj travels distributes its products .raj
travels has various branches all over India as well as one in London in which all the above
mentioned services are provided under one roof.
There are also sales representatives that attend sales calls and hence provide services at their
doorsteps.
Rajtravels also has an exhaustive web site www.rajtravels.com, which helps in online booking
and also providing the necessary information. There are various other websites linked to this one
and also gives information about the weather in different countries time differences, currency
change etc

PROCESS
The importance of process management is that it assures service availability and
consistent quality. Without sound process management, balancing service demand with
service supply is extremely difficult. Service cannot be inventoried; therefore, it becomes
essential to find out ways and means to handle peak load to optimize different customer
needs with varied expertise levels within the service organization.
In marketing management, operations management has been recognized as an integral
function. In manufacturing sector, for example, logistics in distribution are vital to satisfy
customer needs. Similarly, in services sector, where there is no tangible product, the
operations management is vital to deliver satisfaction because here the operations
management would decide how the process of service delivery would function, or in
other words, the interactive experience that would deliver the service benefits to the
consumers.
Shostack gave a much-simplified version and described the 'process' in three stages. First,
a process can be broken down in logical steps to facilitate analysis and control. Second,
there are more than one available options of processes in which output may differ.
Finally, each system includes the concept of deviation or tolerance standards in
recognition that the processes are 'real time' phenomena that do not conform perfectly to
any model or description, but function within a norm.
One can observe how changes in complexity and divergence influence their market
position. For managers in service industries, taking a structural approach can help
increase their control over some of the critical elements of the service system
management. Therefore, for marketers in service industries, process design may be a tool
that can substantially increase their impact and role in marketing their services.

ALL THESE SERVICES ARE INTER LINKED AND HENCE FOLLOW A PROCESS.
FIRSTLY AS AN INTERNATIONAL DESTINATION IS CHOSEN THE BOOKING IS DONE
WITH COMPLETE DETAILS ON THE BOOKING FORM REGARDING MEALS , ROOMS
ETC AND THEN THE SAME IS PASSED TO THE TICKETING COUNTER TO BLOCK
THE SEATS AFTERWHICH THIS THE PASSPORT AND VISAS ARE CHECKED OR
PROCESSED AND THEN GIVEN TO THE OPERATIONS DEPARTMENT TO SEND THE
DETAILS TO THE FOREIGN AGENTS TO PROCESS FURTHER BOOKINGS REGARDING
BOOKING OF ROOMS AND SIGHTSEEINGS.

PRODUCTIVITIY /QUALITY

Productivity in services refers to how you transform the inputs into outputs, which are
valued by the customer. Quality refers to the degree to which the service satisfies the
customer by meeting their wants and expectations. Productivity and quality need to be
omnipresent for the industry to complete its service obligations aptly. Only if your firm is
productive and the quality meets the requirements of the customers can your performance
be graded as excellent.

Here are five key things to consider when developing the performance strategy for your
business.

 Have you found a way to fit marketing into your schedule?

 Do you keep track of both your long and short-term projects (including marketing
projects), and review that list daily?
 Do you have a way of combating procrastination and delay?
 Do you maintain the highest standards of integrity and excellence?
 Are you continually working to improve your skills in all areas of your business?

RAJ TRAVELS SLOGAN ITSELF IS “INDIAS FINEST QUALITY TOUR OPERATORS “

WHICH MEANS THAT QUALITY HAS ALWAYS BEEN AN IMPORTANT ASPECT . RAJ
TRAVELS OFFERS QUALITY TOURS AS IT OFFERS THE BEST OF HOTELS ,
SIGHTSEEING , MEALS ETC .
FOR EXAMPLE RAJ TRAVELS TAKES ITS EUROPEAN PASSENGERS TO EIFFEL
TOWER ON THE TOP LEVEL OR THE THIRD LEVEL AND NOT LIKE THE OTHER
TOUR OPERATORS WHO TAKE THEM ON THE 1ST OR 2ND LEVEL .
PEOPLE
In a service organization, employees are essentially the contact personnel with the
customer. Therefore an employee plays an important role in the marketing operations of a
service organization.
According to him, "the internal marketing concept states that the internal market of
employees is best motivated for service-mindedness and customer-oriented performance
by an active marketing like approach where a variety of activities are used internally in
an active, marketing like and coordinated way." The starting point in internal marketing
is that the employees are the first internal market for the organization.
To realize its potential in services marketing, a firm must realize its potential in internal
marketing - the attraction, development, motivation and retention of qualified employee-
customer through need-meeting job-products. Internal marketing paves the way for
external marketing of services.
The companies that practise internal marketing most effectively will
(1) compete aggressively for talent market share,
(2) offer a vision that brings purpose and meaning to the workplace,
(3) equip people with the skills and knowledge to perform their service roles
excellently,
(4) bring people together to benefit from the fruits of team play,
(5) leverage the freedom factor,
(6) nurture achievement through measurement and rewards, and
(7) base job-product design decisions on research.

RAJ TEAM MEMBERS ARE THE HIGHLY QUALIFIED AND EXPERIENCED PEOPLE.
THERE IS STRONG INTERACTION BETWEEN THE CUSTOMERS AND THE RAJ TEAM
MEMBERS AS ALSO THE TEAMMEMBERS ARE CLOSELY CONNECTED TO THE
CHAIRMAN OF THE COMPANY.THIS RELATION IS BENEFICIAL TO THE
CUSTOMERS AS THEY GET PERSONAL ATTENTION AND ALSO GET QUOTATIONS
IN TIME AS THERE ARE ALSO CORPORATE CLIENTS AND VARIOUS INCENTIVE
TOURS WHICH RAJ TRAVELS CATER TO .
PROMOTION AND EDUCATION
It is now established that there are clear differences in information usage between goods
and services. First, the difference is that consumers of services are less likely to purchase
without information than those of goods. Second, the consumer of services will prefer
personal sources over impersonal sources of information. And third, the basic
characteristics of services have implications for communication strategy. George and
Berry keeping in view the intangibility of services, proposed that in the case of services a
customer is buying the performance of the service personnel and therefore the advertising
in service industries should not only restrict itself to encouraging consumption, but also it
should encourage employees to perform well. They proposed the following six basic
guidelines to help design effective advertising programmes.

• The advertising should have positive effects on contact personnel. . It should

capitalize on the word of mouth.
• It should provide tangible clues to the customers.
• It should make the service offering easily understood.
• It should contribute to the continuity.
• It should promise only what is possible.

Here are five key things to consider when developing the promotional strategy for your
business:

• Are you networking enough? For many service businesses, networking is the
key promotional technique. Join organizations; get to know people; get involved;
keep in touch with people; do what you can to help them; be visible in your
community.

• Do you have a good, solid marketing letter that highlights your benefits and
moves people to take action? This one inexpensive marketing tool is one of the
most powerful when written properly.

• Do you do personal PR such as speaking and writing? Again, these don't take
much money but pay big dividends. Speak at Rotary, your Chamber of
 Commerce, at business associations and alumni groups. Write for your local
paper; the trade journal of your industry, or even for someone else's newsletter.
You can use the reprints later for credibility.

• Are you mailing to people on your list? This is an absolute must. Don't let
people forget who you are and how you can help them. From two to six times a
year send clients and prospects a newsletter or other type of keep-in-touch
mailing.

• Do you have a Web Site? You should. It doesn't take a lot of money to create a
web page and even less to post it. This is a powerful media that can serve as a
combination direct mail piece, brochure and newsletter. Given the price of entry,
it's crazy not to have one.

RAJ TRAVELS FEATURES IT ADVERISEMENTS IN ALL LEADING NEWS PAPERS OF

THE NATION AND ALSO ON HOARDINGS. THEY TAKE PART IN A NUMBER OF
TRADE FAIRS. THEY HAVE A NUMBER OF ADVATORIALS, WHICH EDUCATE THE
PEOPLE ABOUT THE DESTINATIONS THEY WOULD LIKE TO VISIT.
PHYSICAL EVIDENCE
Glynn Shostack once observed, "A physical object is self defining; a service is not" and
therefore the marketing task in service industries is "defining for the service what the
service cannot define for itself."
Though a customer cannot see a service, but definitely he can see various tangible clues
of the service offer like facilities, communication material, objects, employees, other
customers, price, etc. On the basis of his perceptions on the tangible clues, the customer
makes the purchase decision. These clues might be both intended and unintended ones
and, therefore, managing evidence is integral to the service marketing mix. Shostack even
observed that the management of evidence comes first for service marketers.
The argument here is that the physical environment, facilities and atmosphere; give
enough physical evidence to help shape customer perceptions. Many service marketers
have neglected this aspect while the others gave due emphasis to issues like exterior of
buildings, office furniture, layout, colour 0.£ interiors, and even carry-bags, tickets, cash
memos, labels, etc. The advocators of public relations have even coined a specific term
called 'corporate identity' and suggested that such tools can create a visual identity that
the public as customers can recognize. The corporate identity media can successfully
contribute towards the marketing objectives provided they are attractive, distinctive and
memorable.
RAJ TRAVELS IS WELL EQUIPED BY COMPUTER RESERVATION SYSTEMS
LIKE THE AMADEUS , GALILEO AND THE ABACUS WHICH HELPS THEM
MAKE RESERVATIONS .

PRICE AND OTHER USER COSTS

Pricing is yet another variable of the marketing mix. A particular product or service is
acceptable to the customer at a particular price and if the price is increased, it is likely
that the same product or service might become less acceptable to the customer. The other
issue, which is related to pricing, is that of perceptions about quality. Generally, to most
customers, high price means high quality. However, some customers don't need the
highest quality at the maximum price. Detergents are one such example where average
quality detergents at moderate prices are market leaders.
Service pricing follows the principles and practices of pricing of goods and, therefore,
they are either cost based or market based.
Within these categories prices may be profit oriented, government controlled, competitive
or customer oriented. However, the characteristics of services do influence the pricing
and, therefore, different methods of pricing are to be followed.

There are some basic guidelines for pricing of services. These guidelines may help in
developing an appreciation of the framework for service pricing.
1. For services, the pricing strategy should be such that demand fluctuations are
successfully handled. Since services are perishable, they cannot be inventoried. In such a
situation pricing strategy should be such that it should encourage the customers to delay
their use of services till the period of low demand.
2. Service prices should be based on costs so as to take into account the cost of tangible
clues of intangible services. To the first time users of services the "services offer-
package" is less understood if it is primarily dominated by intangibles. Therefore, the
tangible and material content of the service product should be integrated in the 'service-
offer package', which has definite cost implications.
3. The service pricing should be such a to provide value addition and quality indication to
the customers. In situations of "homogeneous" services, the pricing strategy may be
market oriented or customer oriented. But in heterogeneous services, the price may be
used as a quality indicator.
4. The pricing strategy should be such as to cope-up with the degree of competition
operating within a certain geographic and time zone. Services are inseparable from the
person who provides them and the service providers have both geographic and time limits
or markets, which can be served by them.

RAJ TRAVELS HAS TOURS WHICH ARE THE MOST EXPENSIVE IN THE MARKET
BUT THEY ARE YET INDIAS LEADING TOUR OPERATORS AND ACCORDING TO BBC
SURVEY THE NO 1 TOUR OPERATORS IN LEISURE TRAVEL.. THIS IS BECAUSE OF
THE FACT THAT RAJ TRAVELS DOES NOT BELIEVE IN SELLING A PRICE BUT THE
PRODUCT . ALTHOUGH THE INDIVIDUAL AIR FARES ARE THE CHEAPEST AS RAJ
TRAVELS HAS GOOD CONTACTS WITH THE AIRLINES AND ALSO BULK
RESERVATIONS ARE MADE BY THEM. HENCE CUSTOMERS MAKE MOST OUT OF
THEIR MONEY.