INTRODUCTION

Consumerism is everywhere. Rampant in the modern world, it is what elementarily drives the
economy of the world. The monetary exchange for goods and services Fuelled by the needs of
everyday life, consumerism is what drives our world today. Needs are the basis for every
monetary transaction which occurs. These needs are primitive and prevalent since time
immemorial. For any enterprise to proceed it must realize the needs of the consumer it wishes to
pitch its product to. Marketing theory organizes and presents clearer thoughts and ideas most of
which start and stem from the consumer. The needs are locked within the inner recesses of the
consumers minds, unlocking which is the target of most marketing professionals today.
Consumer behaviour is the tool they try to decipher these needs and preferences, apart from other
things.

The most unfathomable variable of marketing can be easily attributed to the mind of the
consumer. Consumer Behavior has been a research topic and key strategic determinant for avid
marketers and economists even, since the 1950s. Consumer Behaviour (CB) is derived from a
combination of key psychology (as it is a part of this discipline) related concepts (viz.
perception, motivation, purchase intention, attitude, loyalty, satisfaction, et cetera) and external
influences on CB like technology (Social Media, Distribution Channels, et cetera). It is often
categorized in the sphere of tourism studies under the moniker Tourist Behavior (TB) (Cohen et
al, 2014). (Moutinho, 1987) says that TB is preliminarily influenced by individual traits like
motivation (Chiefly regulated by social status and familial/societal roles) , attitude, knowledge
(of said service on offer) , et cetera and all of these factors are predominantly influenced by the
societal and culture related aspects. Also behaviour can be grouped into convenient categories
like race, gender, generation, et cetera. So segmentation on this basis is necessitated by CB as
well. So CB works by classifying the consumers into pychological archetypes, studying and
predicting their behaviour and attitude and breaking down the process of buying and decision
making to give a rounded answer to figure how the consumer thinks. In a nutshell CB is a
combination of marketing, psychology, sociology, anthropology and economics.

A commonly applied theory is Russian theorist and physiologists theory of classical conditional,
also referred to as the stimulus-response theory. His experiment with canines was generated
further curiosity in pschologists and thus experiments along the same lines were carried on with
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human subjects to understand the link between association and learning. It identifies four
components of our behaviour. Drive, cue, response and reinforcement. Drive our needs and
wants, cue is an instance of drive fulfilment, response is the reaction to the presented cue/s and
reinforcement is the hedonic reward presented by the fulfilment of the drive (Bray, 2008). For
the purposes of marketing, this is broadly applicable when it comes to promotional activities and
strategies and helps choose the best approach to go forward with. It also helps create brand
loyalty, generate repeat business and help provide better overall satisfaction (Jacoby, 2002).
(Kotler et al, 2009) also discuss the stimulus response theory categorizing it simply under three
headings- The stimulus(Internal or marketing stimuli and external or PESTLE related stimuli),
the buyers mind (referred to as black box) wherein the control is limited and lastly the buyers
response which is related to the purchase specifics like brand, product, price, et cetera.This
model consolidates and presents a simple answer to understanding consumer behavior.

CB to an extent is governable by marketers. A basic understanding of CB and related theories

gives this power to marketing professionals to control the external factors affecting consumers-
by incorporating various methods (for example: by influencing particular groups by inculcating
their values and beliefs to break into their comfort zone and then market the product
successfully) into the marketing strategy thus giving them leverage.

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 CASE STUDY-APEEJAY SURRENDRA PARK HOTELS

With humble origins in the city of Jalandhar, Punjab, tracking back to more than a hundred years
ago, the Apeejay Surrendra group has scaled heights in various dimensions of industry, be it
service or manufacturing. Starting off as a steel manufacturer in 1910, with relevant businesses
in shipping, hospitality, retailing, tea, real estate, financial services and education forming their
conglomerate. The company has had an illustrious past and has stood the test of time.
Diversifying from steel production the company started importing steel, explored the
pharmaceutical industry, real estate and construction and also hospitality, their premier offering,
The Park, Calcutta (1967), on the eponymous downtown street in the city of joy. They soon
ventured into the field of education as well, giving back to society fine institutions. In 1982,
Surrendra Paul stepped up to the plate as CEO of the company and began rapid expansion. His
purchase of tea estates in Assam was one of the key developments in his tenure. But a revolution
was in the making when his daughter Priya Paul joined the family business after obtaining an
undergraduate degree from the US, incidentally joined the Park Calcutta in 1988 as the
Marketing Manager. She went on to head the revitalization of their hospitality business, with
other members from the family initiating their branches in the retail (Oxford Bookstores, Cha
Tea Bar, Flurys) and real estate with their Plug-n-Play offices (1998) while they expanded their 2
chief earning capacities in Tea and Shipping. Their application of forward integration with their
acquisition of Typhoo (UKs no.1 tea brand) and marine clusters and logistics parks have also
been successes. The company began with a mere 100 employees, growing to give jobs to over
43000 people today (Apeejay Group, 2010). One can even compare their path to the Tatas, with
beginnings in steel and diversifications in the hospitality and tea businesses. (Apeejay Surrendra
Group, 2010)

FACTS:

The Park Hotels, were a collective of three five star hotels in Kolkata, Delhi and Vizag
positioned as upscale hotels with an old world charm. Priya Paul, at the helm of the group
in 1990 sought to turn the hotels around due to her experiences with the boutique hotel
outposts in the US designed by visionaries like Ian Schrager and Sir Terence Conran.
(Sanghvi, 2004)

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 The first big move undertaken by Priya Paul was to revamp their signature property in
Calcutta. Its rooms, public spaces, F&B outlets, poolside, modernization and inclusion of
technology and its reallocation to a 5 star deluxe property, in order to be fully able to
reposition the hotel and make an impression for the ones to come. (The Park Hotels, n.d.)
The Park Bangalore (1999), the first hotel under opened under Priya Pauls supervision
saw a market first in the Indian hospitality scenario, a boutique hotel, driven by design
(designed by Conran & Co.), bold in every aspect, letting go of the cookie cutter
approach hoteliers in India always embraced and went forward to put forward rooms
which were individually differentiated (Their motto in 1997 was Leadership through
differentiation). The hotel was novel in the way that it offered personalized yet relaxed
service, put forth a unique design philosophy for each floor of the hotel, offered a
youthful atmosphere and broke most of the archaic, elaborate and formal service norms to
offer a new product. (Gupta & Ramachandran, 2013)
Today the group stands strong at 12 properties including 3 under its new marque, Zone
by The Park, and one international property in Marrakech, Morocco. (World Market
Intelligence, 2015)
The process of centralization was let go when the Priya Paul took over. All the hotels had
their very own uniform (Designed by top-end couture designers like Tarun Tahiliani,
Rohit Bal, et cetera), room design/design themes, strategies, customer sets, dcor, et
cetera. The only few standardization on the block is Standard Operating Procedures
(SOPs) and a few restaurants like ItALIA (Italian Restaurant), Zen (Oriental Restaurant),
Aqua (Poolside Bar), et cetera. (The Park Hotels, n.d.)
Their approach to every property of theirs is very intimate and they make sure that the
hotel exudes character of the city it is based in to give the guest a feel of the location.
They use recurring colours which appear in the citys surroundings, source local art, use
local produce and promote ethnic food. Every nuance is looked after to make sure the
hotel is in accordance to local sentiments.
The Park embraces and celebrates their guests. They have a varied customer market as
per every location (downtown almost always). Their aura is built youthfulness though.
The portrayal of an eclectic and enigmatic hotel is something the hotel chain prides itself
about. They propagate a lively and vivacious image of their hotel which will suit the
modern traveler, whatever profile she/he may be.

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 The Park Hotels believe in higher levels of customer engagement, through a more casual
guest friendly service and also recognizing them with unique personalization for them.
Another peculiar thing they do is The Park-Spotlight, an event for honoring and
celebrating distinguished guests and individuals who have excelled in promoting a unique
style in the performing arts themselves. So the fest held at most of their hotels includes
performances in drama, dance, music, et cetera.
At The Park Hotels, being energy efficient and environment friendly has been an agenda
since their inception as a boutique hotel. They employ a myriad of practices and
procedures to make sure that this it is accounted for.
o In the rooms, ecological alternatives like newspaper and laundry bags made from
unbleached cotton, wood free pencils, jute room slippers, and locally sourced
artisanal cane and wood handicrafts (also made available at the hotel retail
outlets) are displayed.
o Their properties are in line for LEEDS certification (The Park Hyderabad being
the premier Indian hotel to be certified LEEDS Gold) and are made from
construction materials containing recycled compounds.
o HFCs (Hydro fluorocarbons) are used in all their chilling equipment, low
wattage high illumination lighting is used, effluent treatment plants have been set
up along with reuse of wastewater for purposes like flushing are implemented.
Also the use of natural lighting and ventilation is advocated in public areas as
much as possible.
o In the kitchen organic ingredients are used to prevent damage to the soil by
fertilizers and energy-saving equipment is used for food preparation. Wet waste
composting is available in-situ, all the leftovers from the buffet which have not
been put out are sent to NGOs like Mother Teresas Food Bank, wastage from the
butchery section is sent to animal centres and leftover oils are sold to industrial
buyers who convert them into materials like grease, soap, et cetera.
o The Park New Delhi in 2000, took up the task of maintaining and accentuating its
adjacent astronomic attraction, the Jantar Mantar by installing innovating lighting,
proper signage and a clean environ.
Preferred at The Park (PaTP) is the loyalty program endorsed by the chain and is a multi-
faceted program for its guests offering diverse benefits. They even have on offer a club
style property-specific loyalty program (with a one-time fee), which includes exclusive
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 discounts and substantial freebies. A differing rate structure is provided for season wise
bookings here as well. Also on offer are unique point redemption options (in
collaboration with their partners) like airfare wavers/tickets, watches and accessories,
gift/discount vouchers for their parent companys retail outlets (flurys, Cha Bar, Oxford
Bookstore) and also in the form of donations to NGOs they partner with.
In March 2016, as a move to promote cross-chain customer loyalty, Starwood Hotels and
The Park Hotels have a partnered and offer the Starwood Preferred Guest (SPG)
programme now to their guests as Starwoods inclusion of Design Hotels (Which the park
is affiliated to) in their repertoire cemented their partnership (Business Standard, 2016) .
The Park, is known to use multiple outlets in one property, in order to capture various
different market segments. For instance at their Kolkata property, they have Roxy- A retro
style relaxed bar, Some Place Else- Indias first bar to encourage live gigs and till date
famous for doing so, and lastly Tantra a vibrant nightclub. (Gupta & Ramachandran,
2013) They have captured the attention of three different market here at one outpost.
Their Residence floors with only suites and luxury rooms and separate express C/In and
C/Out Counters are to appease the higher end of the market spectrum. (Dixit &
Manikutty, 2001)
They recently underwent a brand-revision activity (with established brand consulting
company Landor) to rejuvenate and revitalize their brand and brand image. Their brands
underwent unification, their brand values, position, slogan, all underwent significant
changes so that they could be poised to grow, even though their brand in essence was not
fading away, but was now subject to higher competition in the boutique sector (Aloft,
Neemrana, et cetera). This led to the formulation of their new slogan, Anything But
Ordinary (Dev & Keller, 2014)
Their latest offering, Zone by The Park initiated with their first property in Coimbatore
in January 2014 and another offering in Jaipur in 2015. The brand was launched to
appease a new segment. To appeal to the price conscious traveler who does not want to
lose out on exquisite design and all-round facility. The theme of the brand is technology
so the entire premises is tech-enabled, equipped with Wi-Fi access, total connectivity, et
cetera throughout. (Bishnoi, 2016) Also with starting with this chain The Park is starting
to franchise and let properties on management contracts as they plan rapid expansion
now, planning to reach 20 properties by 2020 (The Hindu, 2016).
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 DISCUSSION

The Indian hotel market in the 1990s was becoming monotonous and creativity was low.
All the Luxury properties under the recognized Indian marques were churning out tired
products and services. Priya Paul saw this and anticipated a vacuum in the market as the
eclectic customers needed a hotel to cater to their customised needs and provide a change
to the monotony with design driven aesthetics and refreshed service standards.
The Parks entry as a boutique hotel, generated buzz, garnered and created a niche for
themselves, captured a segment of young, global, well-seasoned travelers who craved
new experiences, while not giving up on the extravagances of luxury hotels, served up in
style with a youthful flair. But not limited to the artsy crowd, The Park also retained their
former clientele of mostly business travelers.
The product on offer, was different than the competition whether it be with tangibles like
eccentric design, market facility firsts (they were first to introduce Jacuzzis, in-room
computers, plasma TVs, et cetera) (Dixit & Manikutty, 2001), but they also had a unique
feel about their intangibles like offering a bespoke (n=1), highly personalized yet
casual/homely service to their guests, and in the process empowering employees and
making their roles more independent, all through internal marketing .
Their knowledge and experience in the Indian market is one reason that foreign brands
still have India under unchartered territory when it comes to boutique offerings ( except
Aloft, Zone by The Parks sole competitor, and W hotels, soon to enter India). (Eisen,
2011)
Their unique selling point and value proposition, with extravagance in the bare
necessities in an eclectic design jacket, at a price point lower than the luxury counterparts
is well defined, and to date, in the Indian sector, unparalleled. Their marketing strategy is
strongly focused creating and delivering value to their target market at a profit. They have
very clearly concisely targeted their customers, i.e. business clientele, global travelers, art
buffs and individual intellectuals.
Their marketing strategy is customer focused, but on the contrary to most firms at the
time, it was market-driving, rather than market driven as most pioneering firms are by
nature. (Kumar, Scheer, & Kotler, 2000) Their product is innovative and consumer driven
but their strategy market driving in the Indian paradigm. They capitalized on a Greenfield

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 i.e. boutique hotels, recognized the unrealized demand (although limited) and have
induced demand by generating it and siphoning off from its competitors (Hartmann,
2005).
Management guru Porters generic strategy has also been employed as the brand has
taken the form of a differentiated company and has focused on getting a price premium
from a specific segment that they had in mind, as has been described earlier.
When the management realised that a segment of customers who want the modern design
elements and technology enabled facilities at a lower price premium was developing and
being captured by an adversary of theirs- Aloft, they launched Zone by The Park to gain
that market share and to fulfil their expansion plans at a better pace as they even started
to adopt business models like management contracts and franchisees for this chain.
They underwent a brand revitalization and improvement and audit was conducted which
resulted in the realignment of goals and resulted in the brand being poised for a better
hurdle free future as they underwent this process early on in their product life cycle,
which is a driver for success and mitigates failure as suggested by (Jantz & A. Kendall,
1991) in their model for creating innovative products which are consumer driven.
Their cost leadership is reflected in their annual reports when compared with other
companies as metrics like ARR and revenue were lower than their competitors but their
EBITA % of revenue or EBITA Index was much higher (Gupta & Ramachandran, 2013).

P.T.O.

A few strategic tools like SCOT and the Ansoff Matrix customised for the given case are
presented below:

Ansoff Matrix:

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 Market Penetration Product Development
Offering the largest boutique hotel They have successfully launched a second
portfolio in the country, The Park Hotels chain, Zone by The Park, to gain a larger
have established themselves as leaders. audience and market share.

Market Development Diversification

They recent effort the international market, A culmination of diversification themselves,
The Sahara Palace Marrakech in Morocco The Park Hotels are a part of a larger group
marked their interest in market which has ventures in tea, bookstores and
development. publishing, shipping , real estate, et cetera.
SCOT Analysis:

Strengths
Predominance in its niche.
Strong customer base. (especially from
the arts field)
Singular properties with singular USPs.
Enormous respect for hotel chain in
design circles and upper classes.
Opportunity
There still is unrealized market potential
for such hotels in more metros across
India and select tier 2 markets and the
international market.
Challenges
To grow rapidly and assume presence and
prominence to the likes of Taj, Oberoi, etc.
Market Share growth is limited due to niche
positioning.
Due to the private nature of the family
business, rapid expansion of the business is
next to impossible
Threat
The inherent threat from new international
players in the domestic market may lead to
the loss of their stronghold and loss of
FTAs who can be potential business.

CONCLUSION

The Park Hotels success, is often attributed to the group chairman Ms. Priya Paul due to her
excellent entrepreneurial spirit, which is true, but her degree in economics and entry as a
marketing manager are often neglected as driving forces to this internationally recognized
success. Consumers are at the top of the chain and their satisfaction is job one for every
successful company today. In this case we have seen how consumer needs are omnipresent and it
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is the job of a marketer to recognize these and successfully cater to these needs profitably, even if
the segment is small and will only create a niche. The Park Hotels are a perfect example of
managing the needs of a niche market and maintaining stellar reputation over the years while
demonstrating how revitalisation and modernisation combined are the tools keeps your company
wagon running in the long run.

REFERENCES

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http://www.apeejaygroup.com/aboutus.html

3. Bishnoi, A. (2016, April). Zone By The Park A new age hotel. Hospitality Talk, pp. 14-16.

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 4. Bray, J. (2008). Consumer Behaviour Theory: Approaches and Models. Bournemouth.

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 17. Noel, H. (2009). Marketing Basics-Consumer Behaviour. Lausanne: AVA Publishing
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