Market Position Analysis for [Brand Name]

This assignment requires a market position analysis for a specific hotel brand ([Brand Name]). The analysis should examine the company's standing in the marketplace compared to key competitors such as Fab Hotels, Qik Stay, and Zo Rooms. Furthermore, it necessitates an evaluation of the marketing mix elements to determine strategies that could enhance the brand's competitive edge and market share.

Marketing
management

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing audit...........................................................................................................................3
Competitors analysis of the company.........................................................................................8
Marketing mix of OYO Rooms...................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
The present assignment is based upon core concept of marketing management; the
approach is concerned with business discipline by using practical marketing techniques so as to
manage all marketing resources and activities. The coursework will be studied need of marketing
management within a business organisations. OYO is the chosen organisations for the present
report; its a leading hospitality industry of India. In order to promote itself over the world, the
firm is required to conduct effective marketing campaigns so as to gain high competitive edge
and market growth.
INTRODUCTION
In present scenario, globalisation has made international marketing management as a
fundamental aspect for the marketing strategy of the firm. Marketing management is a function
which needs to be fulfil by every business association at in the best possible way. Although, the
term marketing means to promote a product by recognising needs and wants of target audiences;
it is required so as to satisfy market needs. For effective marketing it is also essential for
management to make several strategies and policies so as to gain high competitive edge and
increase market share. Along with this, marketing management is a process of controlling a
product and then channel it in order to meet customers' desire. Its main objective is to make
decisions towards a product and formulating a framework to make profits through optimal
utilisation of available resources (Kotler, 2015). The entire assignment is based upon OYO
Rooms; it offers rooms at affordable prices that no other players in the budget segment offers
today. Apart from this, the report has described a marketing audit of the company so as to
determine all those factors which have a vast impact on growth and success of business
association. A competitors' analysis has been made by considering three major players of same
industry. Readers will also come to know about marketing mix actions in order to fulfil the gap
between present marketing strategy of the firm and external environment.
MAIN BODY
Hospitality can be defined as a kindness while welcoming guests, visitors or strangers. It
consists with relationship between host and guests or may be a practice of being hospitable.
Evidently hospitality industry is rapidly thriving over the world when other sectors are struggle
to regain from credit crunches and economic downturns. In India, number of visitors come every
year, in this manner hospitality industry act a major engine of economic growth amd improves
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country's image. The growth in hospitality industry and its contributions towards GDP are
continuously remain higher that helps in improving economic condition of the nation as well.
OYO Rooms is the selected organisation for this completion of this report; its an Indian
hospitality service and budget hotel network which was established in 2013 by Ritesh agarwal.
Since, the firm has grown to across more than 8000 hotels in 200+ cities of India, Nepal and
Malaysia. In late 2017, OYO launched OYO Home, an Airbnb-like marketplace for short-term
managed rentals. The firm focused on offerings hassle free and standardized experience of
staying at an unmatched price. In this manner, OYO provides same amenities and awesomeness
hotel experience over all its rooms. Along with a clean room, they also offer, or claim to offer,
quality and standardized services like in-room WiFi, breakfast, AC, backup power, etc at budget
prices. It means people feel in the same way as they feel at home. The business association uses
most advanced hospitality tech which gives shape to its operations. It introduced pioneering
technology so as to deliver better and efficient services, management and CRM. People can book
their orders or rooms through mobile apps of OYO in just just 3 steps or within 10 seconds.
Unlike any hotel chain, OYO doesn't operate and own most of its hotels, actually it ties
up with existing hotel chains and ensure to deliver defined quality to guests who book OYO. In
many cases, guests can book the same hotels through hotel aggregator websites or directly from
the hotel reservations desk, often at the same price (Belz and Peattie, 2012). However having the
brand gives the comfort of familiar brand and quality to guests.
Apart from this, in order to retain its top ranking from competitors. OYO is emphasised
on digital and mass marketing which aggressively leads customer acquisition. The brand claims
to have over 5 million active users of its mobile applications whereas the company also has
strong media presence on Facebook, i.e. more than 3 Lakh followers. It also organises marketing
and promotional campaigns on social media channels in order to attract more and more people.
Unique selling proposition of the company -
Finding hotels is not a big problem but finding the best one is; it encompasses with trust
factor. The founder of the company invested to provide standard hotel rooms over the nation.
The entire business model is rely upon customer experience by an innovative amalgamation of
digital technology and implementing quality control measures which supports to improve
customers' experience in a certain time period. The brand has a tie up with Airtel so as to deliver
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in room wi-fi services at no extra charges. OYO Rooms has started two new divisions so as to
raise up the market share of the firm such as - OYO premium – By coming up from budgted room segmentation, OYO rooms has
started to provide premium rooms services in metro cities with an aim of raising client
base. The concept has been taken by considering business travellers and families who
wants high quality and luxurious accommodation services while staying in hotels and
read to shell out extra money to higher comfort.
 OYO WE – Its a women exclusive brand that is started by the company in order provide
better and safe accommodation services to women travellers; they all will be treated by
ladies staff and peculiar amenities of women (Hutt and Speh, 2012). The main features
involves in this category are – automatic locks of rooms, full length mirror, clean and
hygienic wash rooms, hair dryer, availability of doctor and beauty products on call.
Beside this, there is a facility of cab services and library with women magazines. The
entire concept has been designed by considering maximum satisfaction and comfortless
to women in respect of safety and security as well.
Marketing audit
Marketing audit is a comprehensive assessment of marketing activities, aims and
objectives. By using this tactics, marketers enable to take a look whether or not their marketing
efforts are planned and managed. Along with this, a marketing audit is a great way of examining
the entire marketing plan and then make necessary adjustments so as to make it more effective. It
helps management to getting back in touch with marketing efforts and linked them with firm's
goals and objectives (Malhotra and Peterson, 2014). In addition to this, marketing audit looks
upon internal factors, i.e. efficiency of organisation and marketing activities, but also involves
external environment, I.e, customers, competitors etc. By considering all the fundamental
components of a comprehensive and systematic marketing audit are the following:
SWOT analysis of OYO Rooms
STRENGTH
OYO Rooms is one and only brand which
provides accommodation services to at
reasonable prices to people (Wilson and
WEAKNESSES
OYO does not have ownership any of its
rooms, the firm is following strategy of co-
branding. Its a hotel accumulation platform in
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Gilligan, 2012). One of the major strength of
the company is its strategic location which
allows easily arrival to customers, employees.
The firm has bring standardisation in its
services by modifying them at premium level
and the room suits to customers' needs. There
are several 5 star hotels which have been taken
OYO franchisee and thus it take guarantee of
qualitative and value added services of all
OYO rooms wherever they are situated.
The brand has started off with a one room one
hotel thing but it has spread over 8500
properties and additionally have a stock list of
4000 motels and home-stays. It shows that
OYO is rapidly growing in market due to its
efficient and well designed room services.
The founder of OYO is a youngster who has
won lots of accolades in entrepreneurship; it
shows the person has a great enthusiasm of
doing any work or activity (Chan, He, and
Wang, 2012). Thus, any strategy which
adopted by the firm since beginning was totally
fresh as this the reason OYO has attained
instant success in a minimum time period.
which buyer and seller transact with each other
by common website OYO.
Although, OYO is trying to putting
standardisation in its services of each room; it
is depend upon the prices that it charged. But
the firm is not able to deliver same kind of
services that it promises. It puts a question on
reliability and quality of accommodation
services.
Hotels that are on a tie-up with Oyo can also
loop in other agents for which Oyo cannot do
anything much to circumvent. In this relation,
business model solely thrive in market that is
quite risky for long run (Sheth and Sisodia,
2015).
OPPORTUNITIES
As the world is facing situation of aftermath to
repeated recessionary trends, unemployment,
pay cuts and mostly hotels are in troubled to
put a balance between demand and supply.
Thus, it enhances scope of new entrepreneurs
who have innovative ideas as most of hotels
THREATS
Due to low barriers of entry, most of the
entrepreneurs are tend towards aggregating
services. Several online websites like – trivago,
makemytrip, goibibo etc. which also provides
same kind of services like – OYO.
In today's aura, people are concerning about
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wants to take external support in market.
In past decades, there was a trend of luxury
hotel but now people focuses on saving and
minimising their spending on such
accommodation services (Moutinho and
Vargas-Sanchez, 2018). In this manner,
introduction of the budget hotels, i.e. OYO
rooms will provide boarding and loading
facilities that are high at demand in present
scenario.
Due to emerging economics, wide range of
people travel for various purpose, i.e.
commercial and non-commercial purpose; it
has driven up profusely.
safety and there is a negative image of unsafe
stays in hotels. Various cases of harassment are
also increasing (Liu, Kasturiratne and Moizer,
2012). At this point, OYO does not provide
guarantee of safety and security in hotels.
Political unrest in a nation also reduces tourist
traffic and consequently affects business of the
hospitality industry.
PESTLE analysis of OYO Rooms
Political factors These factors have a major role in an economy, hotel industry targets
tourists who come from local and international regions. Due to rapid
changes in government regimes and terrorism the impact is always direct.
Thus, while companies create and execute strategies, the political arena
highly affect business regulations, spending capacity of people etc. Thus,
management of OYO is concern about hindrance of policies, laws, taxes
and government involvement in trading agreement (Mudie and Pirrie,
2012). For example – in India government is highly involved in all trading
agreements so as to reduce illegal activities. Along with this, government
of the nation must be also liable to encourage investors from local and
foreign markets so as to invest in their start-ups and liberate taxes. In
context of hospitality industry, it is essential for companies like OYO
Rooms to follow up various legislations on customers' safeguarding, i.e.
protection from misinterpretation and false advertising.
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Terrorism activities also affects rate of tourism in hospitality industry it
affects market image of the nation in positive and negative manner.
Economic factors These faction encompasses with – taxation changes, economic growth
inflation, interest rates, foreign exchange currency rates etc. it is necessary
to know economic changes. India is a developing country, here most of
the people cannot afford high rates accommodation services. In this
manner, invention of budget hotels like OYO Rooms really beneficial for
people. In past decades, people are getting more demanded thus budget
hotels helps them in providing quality added accommodation facilities at
cheap rates and giving them high satisfaction level (Zimmerman and
Blythe 2013). Indian economy is suffering from minimal drop due to
demonetisation and financial system. It would affect the entire economic
condition of the country and reduce sales and profitability of businesses.
Social factors In this modern aura, changes in customers' needs and demand also put a
huge impact on hospitality industry. While starting a business, willingness
and enthusiasm both are key factors of success, but now people want
success in short term period. This is a main reason most of start ups get
failed. Thus, being a business class brand, variety of options should be
availed, such as – availability of room for individuals, twin bedrooms are
good enough for males whereas single bedchambers are perfect for
women.
Apart from this, customer preferences in respect of lodging has been
shifted, now they are going private accommodations. In this manner,
invention of Air BnB is a great threat for pre-existing hotels, then
providing riding facility is a big challenge for traditional taxi businesses.
Hence, these are the main social factors which has a vast influence on
hospitality industry.
Technological
factors
In modern era, this factor plays an important role in context of companies
who are doing business at both international and domestic level.
Contextualised to present case study, OYO Rooms has a huge brand name
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in all over India which is helping them in attaining all the goals and
objectives in much effective and efficient manner. They have build online
application for their customers through which they can book rooms, looks
at different hotels, identify rates of hotels in which they are willing to go
and many more. Along with this, it has been analysed that technology has
impacted positively and changed the whole scenario from airlines to
hotels industries. It has also improved communication among business
firms with customers (Dekker and et. al., 2013). Away with this, it is
being examined that OYO Rooms keeps on building up their services
through applying new and updated technology and this has impacted on
their cost and expenses both at the same time which directly affected
profitability of this firm in a positive manner. Through using online
application consumers have gathered best experiences as they can see
hotel rooms, balcony's, swimming pool and other things and pay for the
best after looking at prices of rooms of different hotels. This element is
helping travel and tourism sector to get proper shape so that all the
business hotels, restaurants under this section deliver appropriate services
to consumers right on time.
Environmental
factors
Every firm in this era, is taking initiatives to improvise its sustainability in
tourism sector. At this moment, ecotourism is new technique which is
being mostly used by business organisation under travel and tourism
section. In context to case study, OYO Rooms have introduced ample
number of strategies which has helped firm in delivering services to
consumer or guests that are eco-friendly in nature. It has been located that
OYO Rooms have made some strategies through which organisation can
reduce all the waste materials or utilise wastages in recycled manner.
Along with this, global warming is becoming a major threat for world and
can affect life as well (Desbordes, 2012). Therefore, it is very much
required for firms to reduce all the waste materials through taking under
waste management at workstation in an appropriate manner. Tourism
sector of India and its states mostly stays dependent on season. Thus,
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OYO Rooms in order to enhance their profitability, improvises prices of
rooms and gives discounts to customers in different areas according to the
season.
Legal factors Laws related with effective guest-tenant relationships, maintenance of
public health by developing smoke-free zones and food hygiene standards
apply directly to the industry. Along with this, Indian Government also
formulate regulations regrading women safety and protection which must
be followed by OYO Rooms. For example – when a women is entered
into a hotel in night it should be treated by female staff members with
extra care, safety and security. Apart from this, it has been located that
OYO organisation is doing business in some other countries as well like
Nepal, Bhutan where laws of these nations are different from India.
Therefore, in order to keep up all benefits like enhancement of
profitability and brand image it is must for this company to analyse the
market, consider all the legal laws which has been made by nations and
deliver products and services to its clients (Meffert, 2013). With the help
of this, organisation can improve its sustainability at marketplace of both
domestic and international level.
Competitors analysis of the company
OYO Rooms carries one of the largest chain in all over India and it has ample number of
competitors that are present in Indian market. Some of firms like Fab Hotels, Qik Stay and Zo
Rooms can be stated as main competitors who have created high rivalry for OYO Rooms. In
which Fab Hotels has captured 13.6% markets share, Qik Stay has 16% whereas Zo Rooms'
market share is 45%. Rise in competition has impacted positively on economical conditions of
India. But it has been located that fluctuation in economical conditions majorly affects profit
margins of firms under this section. In 5 years, the firm has dominated 68% market share which
driven up the industry by leading economics and earning high market growth. In order to remain
competitive, OYO is focused on innovation in technology, training and strong brand recall, OYO
has established its leadership in the hospitality segment today with 8,500-plus hotels in more
than 230 cities within its network (Gellynck and et. al., 2012).
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There are some steps which can help OYO Rooms in developing at marketplace of India
and can raise competition as well and these are given beneath:
 First step where OYO needs to look into market that what companies are present that are
doing business in same sector.
 In second step research and development department of OYO can value all the
proposition.
 Then third step which can be taken by OYO Rooms as adoption of innovative process
which can directly put positive impact on their profit margins.
With the help of this, OYO Rooms can give good rivalry to its competitors and can gain
high profit margins in an appropriate sense through attaining goals and objectives right on time.
Marketing mix of OYO Rooms
OYO Rooms is one of the famous Indian brand that delivers many services to its clients
like identifying near by hotels, getting economical prices for its consumers along with they also
offers services to both local and foreign guests with nominal rates. Firm was found in the year of
2012 by Ritesh Agarwal. Organisation is connected with Hospitality industry provides or
delivers best deals to clients in all over India. The company has redefined the concept of hotel
bookings in India with the use of technology. It offers a pleasant stay at minimum budget while
maintaining hygiene and cleanliness standards along with several basic services (Preston, 2012).
Away with this, firm carries many competitors in India and these are: Fab Hotels, Qik Stay and
Zo Rooms
Product: OYO Rooms was launched by Ritesh Agarwal in order to deliver services like
best deals to its clients which are related to Hotels. This has helped firm in bringing changes in
thoughts of consumers which was related to hotels and impacted positively on mind of its clients.
Firm has introduced an online application in order to serve details to customers of hotels right on
time. Along with this, OYO offers things like complimentary breakfast, free Wi-Fi, air-
conditioned room, branded toiletries, spotless bed linen, flat-screen television, beverage tray,
shower heads of 6-inch and many more.
Price: Industry in which OYO Rooms is working it has been located hike in competition
where its rivals like Fab Hotels, Qik Stay and Zo Rooms are delivering services with many offers
so that to gain competitive advantages. On the other hand, online booking services has raised
economical conditions of India as foreigners that are coming to visit India easily believes in
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services that OYO is delivering because all the information that its online application consist or
have high end information about prices of all the accommodation that a hotel is providing (Barile
and et. al., 2012).
Place: It has been located that operations of OYO Rooms get started in Delhi and then it
got spread almost in every single state of India. Firm has developed almost its online application
and carries information like prices of rooms of hotels in all over nation. Mostly this company
does business in metro cities where OYO Rooms mostly does it business like – India, Nepal and
Malaysia. Now, the brand is trying to expand its business in other developed countries as well,
like- Malta and Europe. OYO hotels are located at popular places as well as local areas which are
easily accessible for customers.
Promotion: Oyo Rooms knows that consumers or citizens of India do believes using new
tools and technologies that may aid company in attaining goals and objectives right on time and
then to grab attention of consumers through offering them products and service with innovative
ideas. OYO Rooms has used ample number of techniques in order to gain competitive
advantages like they have placed their logo in every single Hotel in India in which they deals. It
has almost 8,000 followers on Twitter and on Facebook it has grabbed attention of people more
than 2.7 lakh that are connected with OYO from a really very long period of time. Along with
this, company has introduced a campaign as well where social media platforms has introduced
#AurKyaChahiye videos on various channels like YouTube, Dubsmash Contest and many more.
Physical evidence: It has been located that whatever material is that consist of various
approaches that may aid firm in attaining goals and objectives right on time and things which are
being included under this are litigation, introduction of evidences that were related to judicial
proceedings so that to improvise physical presence of OYO Rooms in all over India.
People: OYO Rooms have around 5000 staff member in all around India who are rapidly
increasing sales of this company through adopting various strategies which is helping them in
working with smart ways. On the other hand, OYO Rooms also believes in delivering quality
services to consumers so that they do not go through any sort of problem while resting in a hotel.
Some of services that are being provided by this organisation that is free Wi-Fi, complementary
break fast, air-conditioned rooms and many more (Saren and et. al., 2012). OYO's managers
keeps on delivering training and development programmes to its staff members that may aid
company in attaining goals and objectives right on time.
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Process: As OYO Rooms is offering services that do not exist but it helps a person in
looking into different prices of hotels and selects the best one. Application which was build by
engineers of this organisation is the main source of this company to generate revenue. Process of
booking rooms in hotels where clients of organisation played an important role has helped OYO
Rooms in attaining all the goals and objectives in much effective and in appropriate manner.
CONCLUSION
From the above mentioned report, it get concluded that marketing management is one of
the important task for every business organisation so as to accomplish organisational goals and
objectives. OYO Rooms is a growing hotel network which provides accommodation services at
cheap. The firm is focused on providing qualitative and value added room facilities as people can
feel comfortable while staying at rooms. Along with this, the unique selling proposition of OYO
rooms is based upon getting higher customer experience by satisfying them in the best possible
manner. The report has stated a marketing audit of the company so as to evaluate and improve
marketing efforts and attain business goals and objectives. In this sense, SWOT and PESTLE
analysis has been conducted to determine internal and external influences which has direct and
indirect impact on firm's market position. Apart from this, the main competitors of the brand are
– Fab Hotels, Qik Stay and Zo Rooms in order to examine market position of the company at
marketplace. Furthermore to analyse market position of the company, management is required to
consider marketing mix elements so as to gain high cutting edge and increase market share.
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