H0TEL SARAVANA BHAVAN

MANAGING MARKET

Coursework Submitted To: Mr. Jas Naidoo

Date: 22th March 2010

Rajasekar Mohan [13679]

Word count: 3010

No of Pages: 16

Macro environment & Marketing mix on HSB Page 1

 H0TEL SARAVANA BHAVAN

MACRO ENVIRONMENT AND MARKETING MIX

ON
HOTEL SARAVANA BHAVAN

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What is saravana bhavan?

Hotel saravana bhavan is a chain restaurant founded in 1981 by Mr.
P.rajagopal. . It has been close to 27 years since we started this venture. it
was one of the worlds high tech vegetarian restaurant. A restaurant cuisine
mainly based in south Indian vegetarian.

Outlets:
A restaurant was first started in Chennai, India. Now they having 25 outlets
in India, 21 more out lets all over world in bangsar, Malaysia, new York,
London, Dubai, California, Singapore, Canada etc..

Success of business
We follow perfect formula for success. We are preparing delicious foods. We
follows hygienic conditions during preparing food, served in a clean
environment with a lot of passion and the reasonable pricing is the perfect
answer to our grouth, this is main thing we attracted a customer .our menu
contain 350 dishes in 10 different categories. We follows standard food
preparing, service, quality , taste and hygiene that keeps our hotel famous in
India and some other countries. Customer satisfaction is a theme mantra of
our organization. We are giving good hospitality service to our customer.

Objectives
 Offer high quality of vegetarian food without losing on taste.
 Increase an operational efficiency by monitoring of quality management
system.
 By reducing wastage and better operational techniques we achieve cost
reduction.
 Maintain good relationship between public.
 Expanding our organization.
 Satisfy customer by fulfilling demands and needs.
 Maintaining high value of cleanliness and hygiene in preparing and
preserving food.
 To Avoid cross contaminations and food Poisson.
 By motivating and encouraging our staff to achieve our goal.

Organization strategy:
First hotel saravana bhavan started as a small organization. Now we
are having branches all over world. Anna chi introduced the centralised

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kitchen system. Customers are feeling our formula for our success. Later we
introduced fresh juice, savouries, ice creams, desserts etc...

A success of our dine in restaurant is only taste and quality of food. Now we
introduced fast food, take away, home delivery, and outdoor catering.

We are taking order for maximum of 10,000 cover. Our cuisine is

one of the best in the whole city. True to the saying "Variety is the spice of
life", our menu contains the best of South Indian, North Indian, Chinese,
Gujarati, Chats, Desserts, Beverages, Bakery & Confectionery and ice cream.

We are one of the growing restaurant organizations in hospitality industry.

More than 15,000 employees are working in our organization. Especially we
are taking class for our employees regarding hygiene, hospitality. To improve
knowledge in food and satisfy customer, changing dishes in a menu in each
year. Then, we celebrate food festival, and some traditional festival to show
traditional taste and quality of dishes. Happy hours in week end to make
happy of our customer. all restaurant contains minimum 150 cover to
maximum 250 cover. We are doing this hospitality to both poverty and rich
people. Our organization famous dish is “sambar” this is Tamil nadu
traditional dish. Our organization key word is to achieve a goal.

HSB unique approach

Comparing cost and differentiation with other organization.
Comparing to other organization HSB. HSB competitors are vasantha bhavan,
adyar anantha bhavan, karaikudi restaurant, chettinadu restaurant etc.
Comparing to these organizations why HSB is leading? Our food price is less
and giving high quality of hospitality service.HSB offering exclusive menu in
different verity of dishes and different packages. HSB is a leading chain
restaurant in Tamil nadu India. Maintaining standard of quality and taste.
good relationship between employer and employee, organization and
customer. For example, HSB compared with another leading vegetarian
restaurant (vasantha bhavan) in Chennai, India.

HOTEL SARAVANA BHAVAN HOTEL VASANTHA BHAVAN

It is leading international chain it is leading national chain

restaurant restaurant

Normal price for both high and high price

middle class

More variety in menu less verity

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Hospitality service normal service

Awards
We have won some awards because we won’t compromise on quality and
taste. Some of the Awards are

 Malaysia - Premis Bersih

 Muscat - The Best Restaurant for the Year 2006

 India, Chennai - Best Employer-Employee Relationship Award to

      Shri P. Raja Gopal - conferred by The Rotary
Club of Madras,
1996.
 India, Chennai - Best Achiever Award - given by Mr.A.C.Muthaiah on
12-10-2001

 India, Chennai - 25/25 Silver Jubilee Achiever Award - given by

Tamilnadu Hotels Association on 07-01-2006
[www.saravana bhavan.com]

Financial Statement
A financial statement which is use to show financial position of a
company. It will show companies profit or loss in a company financial year
this is HSB financial statement for last five years

Financial statement of Saravana Bhavan

90% 82%
78%
80% 71% 72%
68%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009

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Macro environment analysis on saravana bhavan hotel,

Chennai, Tamilnadu, India.

What is Macro environment?

The macro environment is more reasonable. It shows general
trends and forces it will not affect the relationship immediately between
company and customer, suppliers and intermediaries. However, it will change
alter nature of this relations soon. The macro environment is commonly based
upon the “PEST “analysis.

[Adrian palmer & Bob Hartley, II edition, 1996. P-29, 30]

PEST ANALYSIS
1) The economical environment

A) Consumption:

HSB also estimated the consumption behaviour of customer

liking and disliking, then make decisions. Product consumption during
preparation of food. To improve economical level we are going to newly
introduce eco system. .

B) Income:

Income is an important factor in economy. This factor decides

HSB level of growth. In earlier HSB concentrate only on poverty people later to
improve the business and income level. we introduced some rich dishes and
air conditioned restaurant for rich people. It is also to target the higher level of
customers.

C) Payment method:

This is an important factor in an organization. Because major

corruption can be done in this factor only. They check behaviour of payment
done by customer. In earlier the payment only done by cash but now there
are different ways to pay money by credit card, debit card, cheques. In
future, we will feed all payments in computer to reduce frauds.

2) The political environment

A) Government policies:

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HSB is a national organization. Each and every company have

to follow the government rules and regulations. It will help for country growth
and organization. HSB following government rules and having all certificates
to run the business in proper manner. Hygiene certificate is main to run a
standard level of restaurant.

B) Policies in price:

A government have fixed price limitation for all products

according to their standards.HSB following this price policies fixed by
government. These price policies were done to enjoy all level people.

C) Political stability:

Political factor is very important to run a business properly.

HSB is a leading vegetarian restaurant in India. So, this is important factor.
Due to political stability there may be some price fluctuation in a
products and taxes. HSB facing all this problems and maintaining
restaurant standards.

3) Social or cultural environment:

A) Social class:

As earlier we discuss HSB targets all peoples like high class

and middle class. By giving different verity of menu for different class people.
Business should be reaching each and every where of people. It satisfies both
higher class and middle class customers. By giving good hospitality service,
taste, quality and quantity of food. We are organizing to elaborate a
menu and to open a separate restaurant for poverty people in fewer
prices.

B) Culture:

The culture of HSB is Tamil nadu although we are having

different kind of customers in our organization. We are conducting all kind of
cultural festivals in India and around the world to make happy of different
kind of customers enjoying our foods and service.

C) Religion:

HSB following only cultural festival. In future we decided to

celebrate religion festivals for different religion people like Hindu
(deepavali), Christian (Christmas), Muslims (ramzan), New Year etc....

4) The Demographical Environment:

A) Age:

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HSB don’t have age limit to work in an organization. Age is not a

mater to work in an organization. Quality of service and aptitude is important
for employee. In future HSB will concentrate on young educated people
to achieve a goal and give hospitality service to customer.

B) Gender:

In this HSB offering both male and female in the society. Because
HSB giving equal level for male and female. Female staffs having some
special feature like male. In HSB 60% of male and 40% of female are working.
In future we decided to make it 5o% male and 50% female.

C) Family Size:

HSB not only offering food for a single man, we are having special
family menu to satisfy the hole family by some variety of dishes is called
family meal, evening meal, children meal etc.... because our goal is not only
attract a single, also a family. We are going to introduce some more meal
for family and newly married couple.

5) The Technological Environment:

A) Research:

HSB given more important for research department in order to

introduce new technology in a market. It will help full to run a business in this
competition world. And to run a business in competitive manner. Research is
not only technically. It is also to research market position.HSB decided to
elaborate a research work in international market.

B) Technical:

Technical team is very important for an organization. It plays

major role in HSB because this team use to repair machineries, Gas control,
electric department and IT department etc. In future everything is going to
be computerized our technical team getting the training in a
techniqual field.

Note: All HSB future plans will highlighted in gray colour.

Conclusion:
Macro environment had played major role in marketing and in an
organization. I like to conclude that HSB organization had done a proper
analysis of macro environment.

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What are 7p’s in marketing mix?

Marketing mix contains 7p’s.

Product

price
7P's promotion
place
process
people
physical
Now we are going to implement these 7p’s in HSB organization.

1) Product:
a) Product designing
 HSB, stock turnover is high
 HSB, dishes price and quality are comparable.
 Goods (family meal, children meal, cuisine meal etc..)
 Hospitality service (hygiene, quick service etc..)
 Equipments are high tech and traditional.
 According to the place HSB products are designed
specially.

b) Product scheme:

HSB introduced some new products to improve their market

share and business.

 Customer service desk

 Comments card
 Suggestion box
 Quality assurance department

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Customer service desk:

This desk is to solve the guest problems and

make them happy. Immediate action will take to the solve guest problem.
After introduced this department we got good respond and we are managing
to give a good service without any problem. We can find out what are the
problems will happen in future.

Comments card:

This is to know the guest happiness and

satisfactions. For each and every guest comment card will be placed after
they had their food some guest won’t like this that’s why HSB newly
introduced online comment card guest can fill the card from home to know
about our service.

Suggestion box:

This box is for all guest and employees to know

their problem secretly and new decision to improve our organization. We got
more new ideas to develop our organization and to establish.

Quality assurance department:

A department which mainly take care companies

quality of product. It helps to protect the food poison. All products will check
by this department which are getting in and out of organization.

c) Line of product:

HSB products are pure vegetarian food items. It includes 7

different cuisines and some dishes mention below

 Chettinadu cuisine

Parupu urundai kulambu

Vendakai mandi

Chettinadu mushroom pepper fry

 Tamil nadu cuisine

Meals

Dosa

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Idly, samdar

 Andra cuisine

Gongura pickle

Tomato papu

 Kerala cuisine

Vegetable curry

Pulichari

 Indian cuisine

Dal dunshak

Nan, roti.

 Srilankan cuisine
Ceylon parata

Puttu

 Chinese cuisine

Veg ball manjurain

Chilly mushroom

 Dessert & beverage

Hot and cold drink

Fresh juice

Water

Basundi

Carrot halwa, ice cream.

and we are offering some more special festival & package meals.

d) Product elaboration:

HSB operating an organization since, 27 years and we

introducing some new recipes each and every year. This year HSB decided to
elaborates a recipe to cover a new customer. Organizing to include more 10

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cuisines. HSB new recipe are under quality and assurance department to
approve.

2) Price

In HSB branches there is no price difference. Price fluctuation is

according to the raw material price and government policies. All bills include
vat. Organizing to open a new restaurant for poverty people in fewer prices.
It price are comparable to other organizations. Price of a dish is discussed by
service manager, purchase manager and executive chef of HSB. It is
approved by managing director.HSB were average and high price and our
target is on both middle and high class people. To fix our brand in a market. It
offering some discount rates for customer during a festival period.

Future decision:

HSB organizing to introduce price card which can use anytime and anywhere
of HSB for discount and to impress a customer. Membership card, HSB food
credit cards this all our other future plans.

3) Place

HSB sure about where the business to be start. Our research &
development team is full responsible to organize the market level and
strategy, customer response, problems of a property, checking all legal
certificate approved by a government. It is very important for opening and
running a business. An organization location should be very comfortable to
customer and employee; all restaurants are located near to bus station or
tube station. Our all restaurant location having sufficient space for parking
and it was not congested. An organization located in competitive places.

Future plan:

HSB decided to cover major places of city in India and trying to

capture the international market. Organizing to open a beach restaurant near
to beach to cover the tourist places.

4) Promotion:

Advertisement is a key for an organization. Through the

advertisement only company will get interact with customer. Advertisement
decides a company level. HSB spends 4% of profit for an advertisement. HSB
advertise through television, posters, pamphlets, newspaper. It advertises
common meals, new products, discounts. Advertise through big banners in a

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busy area to motivate a customer. Using digital stills, attractive colours which
reach a customer as soon as possible.

HSB have joint sales promotions with different companies like sun
network, sky walk mal, city centre, Pepsi. HSB theme of advertisement is
“HSB pure vegetarian palace” “feel a taste”.

HSB advertisements always focus on hospitality, that’s why we are

doing massive sale to target a market,. It always takes care to provide a good
and delicious food to customer and quick service. It is 100% pure vegetarian
restaurant, that’s why customers are giving more attention to us.

Future promotion:

Organizing games for our members and customer in big level and
decided to open restaurant in leisure places, drive in restaurant to cover a
travellers, and mobile restaurant.

These three newly included in a market mix

people

process physical

5) Process:

HSB way of processing a business is different and it is easy to

customer, employee, and management. It is fully computerized billing system
is very easy to process. It introduced new system for stock inventory. We
implement new process in food preparation, and presentation. Preparing food
in order we have separate section for all cuisine it is easy to prepare a food
soon. We won’t make wait a guest in rush time. We have lobby to spend their
time in the busy time. In service each 8 cover having separate service staff,
service captain, and trainee. In cleaning process we are handling 3 way sink
method, which will be perfect for clean.

Process in future:

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For stock inventory we are organizing to introduce new process. In

cleaning, organizing to introduce machine which can do all the three process
in single. Self billing machine for customer to make fast way of billing. In
security, organizing to introduce check in machine which is bio metric system
for employee.

6) people:

HSB standard of presentation to a customer is good. So, it reaches

a customer soon. Staffs are fully trained to attract a guest. In HSB interview
first preference is aptitude, communication, body language, and appearance
which can cover a people soon. HSB staff way of approach will make a good
relationship with a customer. Its key word for staffs is hospitality service to
customer in any manner.HSB mantra is “guest happiness and guest
satisfaction”. HSB have owned good name between people. People are giving
full support for our organization.

Future progressive:

Starting class for every staff regarding hospitality, aptitude, body

language and how to interact with guest. How to satisfy the guest.
Organizing to make all restaurant centralised guest can give order anywhere
of HSB. And we decided to open a new restaurant in highly populated place.

7) Physical evidence:

Physical evidence is nothing but how HSB physically attracted

the guest. I.e when guest entering, surrounding of the restaurant should be
clean and tidy. Organization should give good hospitality service to guest. A
guest will think only this when they are entering a restaurant. Because first
Impression is the best impression. In restaurant interior decoration is highly
effective and attractive to guest. It also concentrate in garden maintains, car
parking, lobby, children care service, special attention for handicapped
people. Currently, it share value is high in the market.

Future target:

HSB organized to design a separate comfortable chair for

handicappers. Make a leisure waiting room for children during a busy time of
restaurant.

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Conclusion:

Marketing is a back bone of an organization. Without marketing we

can’t make success of a product or business. Marketing mix (7p’s) plays
major role in marketing and in an organization. Every organization should
have idea or knowledge of marketing mix. I conclude that HSB have good
knowledge and prospectus of marketing mix and they implemented in their
organization.

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