Marketing Mix of Oberoi Hotels and 7Ps (Updated 2024)

The Marketing mix of Oberoi Hotels analyses the 7Ps of Oberoi Hotels, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Oberoi Hotels. The Oberoi Group operates Oberoi Hotels and is of Indian origin. It is associated with the hospitality industry by dealing with resorts and hotels. The group was founded in 1934 by Raj Bahadur Mohan Singh Oberoi. It is one of the oldest hotel chains in India and has earned an iconic status. Some of its competitors are as follows-

• Le Meridien Group of Hotels
• Taj Resorts and Palaces
• ITC Hotels
• Maurya Sheraton Hotels and Towers
• The ITDC Ashok Group of Hotels

About Oberoi Hotels

• Type: Luxury hotel group
• Industry: Hospitality
• Founded: 1934
• Founder: Rai Bahadur Mohan Singh Oberoi
• Headquarters: New Delhi, India
• Area served: Worldwide
• Key people: Vikram S. Oberoi (Chairman) and Rattan Keswani (CEO)
• Number of employees: 12,000

Oberoi Hotels Product Strategy

Oberoi Group is one of the company’s headquarters world-renowned brands and is the owner and operator of more than thirty hotels of luxury settings and two ships for a river cruise. It also offers catering services to several international airlines and operates lounges and restaurants in international and domestic airports.

“Oberoi group is a significant hotel industry player, emphasizing upscale accommodation and impeccable services. Its chain of hotels includes distinctive and unique Victorian architecture and local and ethnic culture. Oberoi Hotels are at par with international standards if one compares infrastructure, cuisine, services, and facilities. It has exclusive banquet halls and conference rooms for parties and business travelers.

Oberoi Hotel offers a relaxed atmosphere, soothing ambiance, spacious suites, and comfortable settings in rooms equipped with wooden flooring, a television set, a DVD player, a walk-in closet, a private fax machine, steam cubicles in bathrooms, separate dressing areas, and a private bar. Oberoi hotels include services and amenities like 24-hour room service, safe deposit, private balconies, parking, mini bar, doctor-on-call, beauty parlor, health club, swimming pool, travel desk, and internet connectivity. Its restaurant includes several types of cuisine to suit different people.

Oberoi Hotels, known for its luxury hospitality services, typically offers diverse products and services.

The product mix of Oberoi Hotels in 2024 is as follows (Source).

1. Accommodation: This is the core product of Oberoi Hotels. They offer luxurious rooms and suites with various amenities. The rooms are often designed to blend modern and traditional elements, providing comfort and elegance.
2. Dining Services: Oberoi Hotels is known for its exquisite dining options, ranging from local delicacies to international cuisine. They usually have multiple restaurants and bars in each hotel, offering a variety of culinary experiences.
3. Spa and Wellness: Many Oberoi Hotels feature spa and wellness centers offering various treatments and therapies. These are designed to provide relaxation and rejuvenation to guests, often using traditional techniques and natural ingredients.
4. Event and Conference Facilities: Oberoi Hotels cater to business needs by providing conference and meeting rooms equipped with modern technology. They also offer spaces for social events like weddings and parties, providing catering and event planning services.
5. Customized Experiences: Oberoi Hotels often provide personalized services like private dining, bespoke tours, and curated experiences based on local attractions and culture.
6. Loyalty Programs: They typically have loyalty programs offering rewards and benefits to repeat guests, encouraging brand loyalty and repeat business.
7. Additional Services: These may include concierge services, travel assistance, transportation services, and more, aiming to provide a comprehensive luxury experience.

The specific details of the product mix might vary slightly depending on the location and particular property within the Oberoi Hotels chain. However, the primary focus on luxury, comfort, and personalized service remains consistent across their properties.

Oberoi Hotels Pricing Strategy

Oberoi Hotels has targeted corporate offices, higher-income groups, and urban travelers as potential customers. It provides customers with the right blend of luxury, efficiency, and services for urban travelers. Oberoi Hotels is a five-star hotel offering first-class services to distinguished customers and esteemed clients.

It has adopted a premium pricing strategy that is also value-based. It has several accommodations, each priced depending on the services and facilities included. Oberoi Hotels has a competitive advantage and charges affordable prices for luxurious settings because it knows its loyal customers are willing to shed extra bucks for added benefits via the best possible product features and services.

The international pricing and marketing mix strategy of Oberoi Hotels reflects its positioning as a luxury brand in the hospitality industry. Here’s an analysis from a complete marketing mix perspective:

1. Premium Pricing: Oberoi Hotels employs a premium pricing strategy, using lower prices but higher prices than many competitors. This aligns with their luxury and exclusivity brand image, signaling high quality and exceptional service standards to potential guests.
2. Value-Based Pricing: Despite the premium tag, Oberoi’s pricing strategy is deeply rooted in value perception. They justify their prices by offering unparalleled experiences, personalized services, and superior quality in every aspect, from accommodation to dining and additional amenities.
3. Dynamic Pricing Model: Oberoi Hotels leverages a dynamic pricing model, adjusting rates based on seasonality, easy availability, demand, and booking patterns. This flexibility maximizes revenue while adapting to market conditions and customer willingness to pay.
4. Segmented Pricing Strategies: Recognizing the diversity of their clientele, Oberoi employs segmented pricing. This involves offering different price points for existing products for various customer segments – from business travelers requiring executive suites to leisure travelers seeking standard rooms – ensuring appeal across a broad spectrum of guests.
5. Promotional and Loyalty Pricing: Oberoi Hotels often runs promotional campaigns to foster customer loyalty and attract new guests, offering special rates and packages. Additionally, their loyalty programs provide exclusive benefits and discounts to repeat guests, enhancing customer retention and encouraging repeat business.

Overall, Oberoi Hotels’ pricing international marketing strategy is carefully crafted to uphold its luxury brand image while maximizing revenue and catering to a diverse clientele, reflecting a deep understanding of its target market, positioning, and customer base.

Oberoi Hotels Place Strategy

Oberoi Group started its operations in India but, with time, spread its presence to several major cities and other countries in the international arena. Its headquarters are based in New Delhi, India. Its hotels in India are located at strategic and convenient places in major cities like Agra, Jaipur, Udaipur, Shimla, Ranthambore, Chandigarh, New Delhi, Mumbai, Kolkata, Kerala, Gurgaon and Bangalore.

Its overseas hotels are Lombok and Bali in Indonesia, Madina in Saudi Arabia, Dubai in UAE, Mauritius in Mauritius, and Nile Cruiser in Egypt. Its expansion plans include Morocco, Abu Dhabi, Oman, and Greece. Service is an integral part of the hospitality sector, and Oberoi Hotels has an efficient and multi-talented workforce that offers the best possible services to its clients.

Oberoi Hotels place strategy is as follows:

1. Strategic Locations: Oberoi Hotels are often in prime locations or close to major city centers, business hubs, or popular tourist destinations. This positioning allows easy access for both business and leisure travelers.
2. Luxury in Tranquil Settings: Many Oberoi properties are set in serene and picturesque environments, offering an escape from the hustle and bustle of city life. This includes resorts in hill stations, beachfront, and historical landmarks.
3. Global Presence with Local Essence: While Oberoi Hotels have a significant presence in India, they also extend internationally, ensuring each property reflects the local culture and heritage, appealing to local and international guests.
4. Integrated with Transportation Hubs: Accessibility is critical, so Oberoi Hotels are often conveniently located near airports, major train stations, and well-connected road networks, making travel and logistics more accessible for guests.
5. Expansion and Diversification: Oberoi continues to expand its footprint, not just in terms of geographical locations but also in diversifying service offerings and the type of properties, including city hotels, beach resorts, and heritage properties, catering to a wide range of customer preferences.

Oberoi Hotels Promotion Strategy

Oberoi Hotels has adopted several promotional policies to create positive brand equity and awareness. It has launched campaigns for better visibility via magazines, tour and travel operators, and social media platforms, including Facebook, Twitter, Instagram, YouTube, and its website. It also relies heavily on word-of-mouth publicity from its clients, who recommend it to others. Oberoi Hotels has received its five star hotels five-star deluxe ratings from the Ministry of Tourism, it is the highest acknowledgment of rating available in the Indian hospitality sector.

They are famous worldwide because of international standards and their high service quotient and have bagged several awards for their efforts. Asia’s Leading Luxury Hotel and Best Five Star Deluxe Hotel in India for The Oberoi, New Delhi, Favourite Luxury Hotel in India for The Oberoi Udaivilas, Udaipur, and Award of Excellence for promoting Tourism in Egypt to The Oberoi Zahra, Luxury Nile Cruiser, Egypt.

Oberoi Hotels’ promotion and marketing strategy is as follows:

1. Targeted Digital Marketing: They utilize sophisticated digital marketing strategies, including various social media platforms, email marketing, and online advertising, to reach potential customers with personalized content and offers.
2. Collaborations and Partnerships: Oberoi Hotels often collaborates with luxury brands and travel influencers to enhance brand visibility and appeal to an affluent customer base.
3. Exceptional Customer Experience and Word of Mouth: They promote word-of-mouth by providing outstanding service and unique experiences, relying on satisfied guests to spread their reputation as a premier luxury hotel brand.

Some Recent Video ads and Print ads of Oberoi Hotels are:

Oberoi Hotels People Strategy

When discussing the “People” aspect of the Service Marketing Mix for Oberoi Hotels, it’s essential to focus on how the company manages its staff, customer service quality, and human interaction’s overall impact on the guest experience. Oberoi Hotels, known for its exemplary service standards, strongly emphasizes its people, from frontline employees to management. Here are some key points regarding the “People” component in the context of Oberoi Hotels:

1. Rigorous Selection Process: Oberoi Hotels employs a stringent selection process to ensure that only candidates with the right attitude, skills, and potential for hospitality excellence are chosen. This includes various rounds of interviews and assessments to gauge a candidate’s personality, aptitude for service, and fit with the company’s culture.
2. Comprehensive Training Programs: The company invests heavily in employee training and development programs. Oberoi Centre for Learning and Development (OCLD) is renowned for its rigorous training regime that prepares individuals for various roles within the hotel. These programs cover technical skills and emphasize soft skills, customer handling, and service etiquette to maintain high service standards.
3. Employee Empowerment: Oberoi Hotels believes in empowering its employees by giving them the autonomy to make decisions to improve guest satisfaction. This empowerment encourages initiative and ownership, leading to personalized and exceptional service experiences for guests.
4. Recognition and Rewards: The company has a culture of recognizing and rewarding employees for their contributions and exceptional service. This motivates employees and fosters a sense of belonging and loyalty towards the organization.
5. Diversity and Inclusion: Oberoi Hotels values diversity in its workforce, believing that a diverse team brings varied perspectives and enhances creativity and innovation in service delivery. The company actively works towards creating an inclusive work environment where everyone feels valued and respected.
6. Leadership and Management: The leadership at Oberoi Hotels plays a critical role in shaping the service culture and ethos of the organization. They lead by example, demonstrating the importance of guest satisfaction, attention to detail, and the pursuit of service excellence.
7. Employee Satisfaction and Well-being: Oberoi Hotels strongly emphasizes the well-being and satisfaction of its employees. It understands that happy employees lead to happy customers. The company provides various facilities and benefits to ensure its staff’s physical and mental well-being.
8. Customer Service Excellence: The staff at Oberoi Hotels are trained to go above and beyond to ensure guest satisfaction. Personalized service, attention to detail, and a proactive approach to guest needs are hallmarks of the Oberoi service experience.

Oberoi Hotels Process Strategy

The “Process” element of the Service Marketing Mix for Oberoi Hotels involves the operational procedures, mechanisms, and flow of activities consumed by services. This aspect is crucial for ensuring customer satisfaction, efficiency, and the overall quality of the service delivery. For Oberoi Hotels, known for its luxury and impeccable service standards, the processes are designed to enhance guest experiences, maintain operational excellence, and ensure consistency across all touchpoints. Here are some key points regarding the “Process” component in the context of Oberoi Hotels:

1. Check-in and Check-out Procedures: Oberoi Hotels streamlines its check-in and check-out processes to ensure they are quick, efficient, and hassle-free for guests. The hotel utilizes technology to facilitate these procedures, offering online check-in or express check-out options to save guests time.
2. Guest Service and Feedback: The hotel has a structured process for handling guest services and collecting feedback. This includes in-person interactions, comment cards, and digital platforms. Feedback is systematically analyzed to identify improvement areas and tailor services to meet guests’ preferences.
3. Room Service and Housekeeping: Oberoi Hotels has meticulous standards for room service and housekeeping, with clearly defined processes for order taking, delivery times, and room cleaning schedules. This ensures consistency in service quality and hygiene standards across all properties.
4. Dining and Culinary Experience: From reservation to service delivery, the dining process is carefully managed to provide guests with a seamless and memorable culinary experience. This includes attention to dietary preferences, ambiance settings, and personalized service from the staff.
5. Emergency and Safety Procedures: Oberoi Hotels prioritizes the safety and security of its guests. The hotel has well-defined emergency procedures, including evacuation plans, safety drills, and first aid, ensuring that staff are well-prepared to handle any situation.
6. Staff Training and Development: An integral part of the process involves continuous training and development programs to ensure that employees are up-to-date with the latest hospitality standards, service techniques, and operational protocols.
7. Quality Control and Assurance: Oberoi Hotels implements strict quality control measures across all its services and operations. Regular audits, mystery guest visits, and quality assessments are conducted to ensure adherence to service excellence standards.
8. Reservation and Booking System: The hotel’s reservation and booking system is designed for ease of use, offering multiple booking channels, including online, phone, and through travel agents. This system is integrated with customer relationship management tools to personalize guest experiences based on their preferences and history.
9. Sustainability Practices: Oberoi Hotels incorporates sustainable practices into its operational processes, from energy conservation measures and waste reduction to sourcing local and sustainable products. This commitment to sustainability is part of the hotel’s broader corporate social responsibility strategy.

Oberoi Hotels Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix for Oberoi Hotels encompasses the tangible and intangible aspects that help customers form their perceptions of the service quality. This component is crucial in the hospitality industry, where the ambiance, facilities, and overall environment significantly shape guest experiences. For Oberoi Hotels, known for its luxury and elegance, the physical evidence is meticulously crafted to reflect its brand standards and ethos. Here are some key points regarding the “Physical Evidence” component in the context of Oberoi Hotels:

1. Architectural Elegance: Oberoi Hotels are renowned for their distinctive architecture that blends traditional aesthetics with modern luxury. The buildings are significant physical evidence, reflecting the brand’s commitment to elegance and sophistication.
2. Luxurious Interiors: The interiors of Oberoi Hotels are designed with attention to detail, featuring high-quality furnishings, artwork, and decor. Every element, from the lobby to guest rooms, restaurants, and lounges, is curated to provide guests with a luxurious and comfortable environment.
3. Signature Amenities: The hotels offer signature amenities such as plush bedding, designer toiletries, and personalized welcome gifts. These tangible elements contribute to the overall guest experience and reinforce the brand’s promise of luxury.
4. Well-Maintained Facilities: Oberoi Hotels ensures that all facilities, including spas, fitness centers, swimming pools, and business centers, are state-of-the-art and well-maintained. The condition of these facilities serves as physical evidence of the hotel’s standards of excellence.
5. Uniforms of Staff: The attire of the hotel staff, from front desk employees to housekeeping and service personnel, is carefully designed to match the hotel’s luxury ethos. Uniforms are not only a form of physical evidence but also contribute to the brand’s image of professionalism and attention to detail.
6. Branding Materials: Printed and digital materials, including brochures, menus, stationery, and the hotel’s website, are professionally designed with a consistent brand theme. These materials provide guests with information about the hotel’s character and standards.
7. Signage and Wayfinding: Clear, elegant signage and wayfinding systems throughout the hotel assist guests in navigating the property quickly. This aspect of physical evidence enhances the functionality and aesthetic appeal of the hotel environment.
8. Cleanliness and Hygiene: The impeccable cleanliness and hygiene standards maintained across all areas of Oberoi Hotels are crucial forms of physical evidence. They reflect the brand’s commitment to guest safety and comfort.
9. Ambiance and Sensory Experience: The overall ambiance, lighting, music, and fragrance used in the hotel lobbies and public areas, is carefully selected to create a welcoming and luxurious atmosphere. These sensory experiences are intangible elements of physical evidence that significantly impact guest perceptions.
10. Quality of Food and Beverage: The presentation of food and beverages, including the quality of ingredients, plating, and serving style, is physical evidence of the hotel’s commitment to culinary excellence.

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