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OYO: Creating Effective Spaces: Group 1 Dilip Dwivedi Lovely Pateriya Malvika Chandel Sauhard Singh

OYO is a business that manages hotels through its OYO Asset Light model. It is currently in a growth stage, venturing into brand diversification and rapid inventory expansion. Some of its key marketing challenges include dynamic pricing issues, selecting new locations, staff training, and maintaining standardization across locations. OYO's understanding of customers is based on its founder Ritesh Agarwal's experience staying in various hotels and bed and breakfasts. It recognized issues like lack of trust among travelers and focused on standardizing the budget room experience. OYO collects customer data through feedback forms and reviews to make continuous improvements.

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Dilip Dwivedi
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60 views12 pages

OYO: Creating Effective Spaces: Group 1 Dilip Dwivedi Lovely Pateriya Malvika Chandel Sauhard Singh

OYO is a business that manages hotels through its OYO Asset Light model. It is currently in a growth stage, venturing into brand diversification and rapid inventory expansion. Some of its key marketing challenges include dynamic pricing issues, selecting new locations, staff training, and maintaining standardization across locations. OYO's understanding of customers is based on its founder Ritesh Agarwal's experience staying in various hotels and bed and breakfasts. It recognized issues like lack of trust among travelers and focused on standardizing the budget room experience. OYO collects customer data through feedback forms and reviews to make continuous improvements.

Uploaded by

Dilip Dwivedi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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OYO: Creating

Effective
Spaces

Group 1

Dilip Dwivedi

Lovely Pateriya

Malvika Chandel

Sauhard Singh
At What stage was the business in ?What are the
marketing challenges?

Growth Stage-:
• Venturing in Managing Hotels through OAM.
• Brand Diversification.
• Rapid Inventory expansion
What are the marketing challenges?
7Ps of Marketing Challenges
Price • Dynamic Pricing Issue
• Minimum guaranteed payment model
Place • Selection of location for other Oyo brands.

Promotion • Distribution of rooms

Product • Standardisation of product and services

People • Staff Training


• Staff Welfare
• Reaching Target customers

Physical Evidence • Presence of staff and basic services.


• Good room condition and amenities

Process • Lack of easy interactive hotel operation


solutions
• Maintainance of standardisation
What is their level (breadth/depth) of
consumer understanding?
• OYO’s understanding of customers has been primarily based on Ritesh Agarwal’s experience while staying
various B&Bs and Hotels.

• OYO believed that the issue of trust deficit among travelers in India because of different religions and cultures
in India could be resolved through Standardization which became one of the core principles of the company.

• They understood that most of the demand was for budget room segment thus OYO invested very less to offer
basic needs to customers at fewer prices.

• OYO believed that quality customer service brought great values, hence, they improved customer experience
by introducing infrastructural as well as staff-training related changes.

• As customers came from different societies looking for different experiences using their own app hence, OYO
introduced different brands like OYO Room, OYO flagship and OYO Township.
Question 3 Have they been doing marketing
research ? Comment .
Step 1 Articulate the research problem

The problem was not discovery it was predictability and room


standards.

Goal for OYO create a customer experience that the customer would never forget
by addressing all the pain points of the customers.
Step2 Determine the data sources

They hand 2 data sources

• Competitors

• Consumers

The 2 month stay in different B&B helped them recognize the pain points of the
consumers and also help them pave path to doing things differently.

Consumers are the continuous source of data for making improvements through
feed backs, reviews and complaints.
Step 3 Data collect strategy

There are two major strategies which we could figure out

The competitor data was collected through casual research from observation and
experience by staying in B&B and also different properties and through
understanding the hoteliers.

Consumers data is collected through feedback forms, reviews and ratings. Experience
based analysis.
Step 4 Collect data and generate insights

Ritesh Agarwal on coming back to India travelled and stayed in different B&B and came back enriched
with the problems of operation that they were not able to delivery basic promises.

• No advance booking.

• Advertised amenities were absent.

• Budget hotels

Other insights that he gathered where Indian middle class is trust deficit, and that they don’t want to stay
at a strangers place because of their deep rooted biases.

Many hoteliers did not realized what factors effected customer satisfaction.

Its easy to find a property but difficult to find standard rooms.


Step 5 Decide what to do
” OYO aimed to build a trustworthy brand identity by gathering a large network of budget hotel
rooms and standardizing them to make them synonymous with a reliable stay experience. This, in
turn, would create stickiness. Agarwal was confident, “The customer will come back to me if I
deliver a good experience.”

• 5 promise of OYO clean washrooms, spotless linens, Wi-Fi, free breakfast and Air conditioning.

• Auditing rooms

• Ranking hotels on the 3c’s

• Pricing of the rooms

• Scaling up

• Distributing rooms
Will Market Research Help Them? How?
For What?
• Oyo is trying to get into unknown territories by creating other segments apart from budget rooms called
OYO Rooms : OYO Flagship and Townhouse Brands

• This introduction is based on the premise “Some of these customers might have preferred an OYO Room
when they were younger, but now that they were older and had families they wanted a better-quality
staying experience”

• The success and failure of thee two other brands depends upon the above assumption

• Market research will help them in:


• Finding out the demand

• Overall acceptability of other two brands

• Brand association among older customers to make the transition from Rooms to Townhouse

• Brand Loyalty
Thank You!

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