Overview of Brand ExtensionITC Hotels

Brand Management Project

Parvez Jesani (PGP30157)

ITC’s extension to Luxury Hotels

ITC entered the hotel industry in 1975

Luxury Hotel Industry in India

Luxury hotels have witnessed a 8x growth from FY96 to FY14

ITC’s share in the pie

18%

82%

ITC hotelsOther hotels

Out of 52,000 luxury rooms in India, ITC owns 9,200 rooms

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

Luxurious Hotels

Price

Room rentals are very highRent for Basic Rooms are ~8-10k/ room/ nightService charges are exorbitantly high

Place

ITC has its presence in Tier 1 and few Tier 2 cities in India

New Delhi MumbaiChennai BengaluruHyderabad KolkataJaipur AgraVadodara AurangabadVizag ChandigarhJodhpur Kerala

Promotion

Loyalty Program for Customers

Tie up with Wills Lifestyle stores

Schemes (one night stay free in the hotel for spending Rs. 60,000 in its properties

Competitive Frame of Reference

Target Group High end tourists Business Travelers Higher income group