ITC HOTELSSales and Distribution Channel

Girish Menon AjinkyaApoorv Mahajan Shubham BhatiaShubham

ITC• ITC was established on August 24, 1910• Indian public conglomerate company headquartered in Kolkata, West

Bengal, India• ITC's annual turnover stood at $7 billion and market capitalization of

over $34 billion• The company is currently headed by Yogesh Chander Deveshwar (CEO)• It employs over 29,000 people at more than 60 locations across India

and is listed on Forbes 2000• ITC Limited completed 100 years on 24th August 2010

ITC entered the hotel industry in 1975

ITC’s extension in Luxury Hotels

Company Logo

BRANDING• ITC Hotels presents the GREENEST LUXURY HOTEL CHAIN in the

WORLD.• Tagline – “RESPONSIBILITY LUXURY”• ITC Hotels is an exemplar in sustainable hospitality with all its

premium hotels being LEED® Platinum certified• The group today operates under FOUR distinct brands: Luxury Collection Hotels Sheraton Hotels Fortune Hotels Welcome heritage hotel

ITC’s share in the pie

18%

82%

ITC hotelsOther hotels

Of 52,000 luxury rooms in India, ITC has 9,200

Digital Marketing & E - Distribution

Internet and digital media

Brand Website

Social Media

Marketing

Marketing Services

Advertising

Hotel graphics

Brand Management

Loyalty Programs

Leisure sales

activation

Marketing Comm.

Marketing @ ITC Hotels : Structure

ITC’s growth over the years

ITC has added 8,000 rooms in the last 2 years

FY09 FY10 FY11 FY12 FY13 FY14 FY158000

9000

10000

11000

12000

Revenue (INR Mn)

Product – What are we selling?

Luxury rooms

Product – ITC also provide services

Meeting rooms/ Conference rooms/ Board rooms

Restaurants & Bars

Room bookings – Eva, business, executives

SPA & Swimming pool

Services

ITC also provides services as part of its offerings

PRODUCT CATEGORIESBRAND CATEGORY POSITIONINGITC HOTEL LUXURY

COLLECTIONMANSION OF LUXURY

WELCOME HOTEL SHERATON UPPER UP SCALE

PASSION FOR QUALITY

FORTUNE HOTEL UPSCALE -MIDSCALE

PROMISE OF TRUE VALUE

WELCOME HERITAGE

HERITAGE UNIQUE EXPERIENCES

PRICE

ITC follows premium pricing strategy

Charged according to facilities

Room rentals & service charges are very high

Rent for Basic Rooms are ~8-10k/ room/ night

Pricing is the only mix which generates turnover

Place

ITC is spread across various cities in India

Strategic Locations Metropolitan cities Business hubs Tourist places Heritage areas

Mumbai Bengaluru Kolkata Agra Aurangabad

Chennai Hyderabad Jaipur Vadodara Delhi

PROMOTIONS

ITC has a tie up with Wills Lifestyle

Members get rewarded with Loyalty points for their purchase

ITC offers various schemes to increase consumption (one night stay free in the hotel for spending Rs. 60,000 in its properties)

ITC has a reward program for its customers

Members will earn loyalty points based on usage

Loyalty Program for Customers

Tie up with Wills Lifestyle stores Schemes based on Usage1 2 3

SEGMENTATION

“Grouping people according to their similarity related to a particular product category.”

• Geographical – Urban Area• Demographical – High Income people, based on age – 30+• Psychographic – Life style • FEEL GOOD – Hospitality and ambiance

TARGETING

• High Income Families.

• Couples both Indians and foreigners.

• Business travellers.

• Corporate – Meeting & Events

POSITIONING

Tag line – “Responsibility Luxury”

Sales Hierarchy of ITC

Sales Trainee

Area Executive

Area Manager

Assistant Manager

Branch Manager

Regional Branch Manager

District Manager

The Loyalty / Recognition programs of ITC Hotels target various segments of hotel clientele.

ITC Hotels’ member programmes can be classified as:

1.Recognition led – WelcomClub 2.Loyalty / Frequency led – Club ITC, Culinary Plus (Club ITC Culinaire) & WelcomLink3.Acquisition led – ETVP

CEO/MD/Chairman level

Individual Business Traveler

Frequent Diner

Admin Heads / Secretaries / Influencers

Corporate / Company

Club ITC

Club ITC Culinaire

WelcomLink

ETVP

550 / 300 + member base

1,50,000 + member base

40,000+ member base

5000+ member base

250+ corporate members

WelcomClub

Loyalty Marketing : Architecture

Loyalty Marketing : Club ITC

‘Club ITC’ is the frequent guest loyalty program of ITC Hotels – It signifies a coming together of key values that ITC stands for– trusteeship, perfection and a celebration of all things fine.

There are 3 Membership levels - Silver, Gold, and Platinum. Eligible customers will be enrolled into the base tier of the program. i.e. , Silver. Members are upgraded from Silver to a higher tier basis the criteria defined for each tier.

The guest is to be referred to as a “Club ITC Silver / Gold / Platinum member”

Loyalty Marketing : WelcomClub

• WelcomClub works like an “unpublished premium ” tier of the Club ITC Programme (i.e. the level cant be earned by performance , but is achieved by Invitation basis the position he/she enjoys ).

• Till the time the guest is a WelcomClub member there will be no downgrades applicable basis the performance of the member in the Club ITC programme, unlike all other tiers . Further, the spouse of the member will also get a complimentary enrolment into the WelcomClub programme, with all the similar benefits as the primary member

• WelcomClub members are entitled towards the same earnings as the Platinum members.

• The Spouse of the WelcomClub member also receives a WelcomClub membership

• WelcomClub members are never downgraded

Loyalty Marketing : WelcomLink

• Welcomlink is a lifestyle rewards program designed exclusively to recognize and reward individuals channeling business into ITC Hotels.

• Typical members would be admin heads, secretaries and any person in a company who can influence travel and lodging requirements for company executives

• Given that most hotel chains offer competitive rates & services which are more or less similar, WelcomLink may be used as a differentiator. The idea behind this program is to give the customer an incentive for booking with us

• Members can earn points for every materialized room at 1% of eligible room revenue generated when they book at participating hotels. These points can be redeemed for a set of rewards

Loyalty Marketing

Executive Travel Value Plan

ITC Hotels Executive Travel Value Plan (ETVP) is a comprehensive value filled offering for organisations with multi-destination business or leisure travel. Through ETVP, company executives can enjoy special room rates at over 90 participating hotels.

It also offers a host of unique benefits encompassing significant discounts on principal services such as Food & Beverages, Laundry, Telecommunications, Business Centre Services and more.

ETVP is designed for ease of operations, both for the individual and the organisation and relieves them from negotiating terms each time they travel.

CRM Measures

• Conducting monthly Survey.• Suggestion boxes • Taking feedback internal customers i.e., the employees.• Employing Mystery Customers. • CRM software• Having Guest History programs.• Efficient system of complaints handling • Giving recognition awards to attract old customers.• More personalized and empathic services -- satisfied and return customers

THANKYOU