Professional Certificate in Marketing Charted Institute of Marketing (U.

K) December 2010
Assignment for Managing Marketing

Membership Number 13087695

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Word Count
Word count

TASK 1
Critical evaluation of the current structure and role of marketing 1041

TASK 2
Critical evaluation between management and leadership 1142

TASK 3
Prepare an internal marketing plan 1085

TASK 4
Team development and talent management 890

TASK 5
Recommendation of a monitoring system to evaluate financial performance 878

LIST OF FIGURES
Figure 1 Organizational Structure Figure 2 - Differences between what leaders and managers do Figure 3 Difference between a leader and a manager Figure 4 -- Bersin & associates Talent management framework Figure 5 Balance sheet

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LIST OF CONTENTS

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Executive summary
1.0 Critical evaluation of the current structure and role of marketing 2.0 Critical evaluation between management and leadership 3.0 Internal marketing plan 4.0 Team development and talent management plan 5.0 Recommendation of a monitoring system to evaluate financial performance Appendix 1 Appendix 2 List of references

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05 09 14 19 23 27 31 34

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Executive summary
Taj samudra can improve there internal marketing progammes and improve performance and efficiency through doing the following 1.0A critical evaluation of the structure and having the marketing role and marketing jobs properly clarified and elaborated. Currently Taj samudra has a hierarchical structure and it is based on functional department wise. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, and knowledge. The role of each individual will be clear and well defined. But the disadvantage will be that there is one way (Top downwards) communication in the norm. Taj samudra markting roles should be revised. 2.0 Critical evaluation between management and leadership is to be done. What is the difference between management and leadership? The biggest difference between managers and leaders is the manner in which they motivate the people who work or follow, and it sets the tone for other aspects of what they are doing more. "There is a direct correlation between how people feel that their managers and they play." Strong leadership is imperative to shape a group of people into a force that serves as a sustainable business advantage 3.0 Internal marketing is an important "application". It facilitates communication and helps us to overcome resistance to change. It informs, and includes all staff of new initiatives and strategies. It is simple to construct, especially if you are familiar with the traditional principles of marketing. If you have an effective internal marketing communications, you will increase the mobilization of the employees in the marketing of related activities. You will improve the recognition of the effect of their actions on the marketing and sales. Good marketing communication internal, like all good internal communications motivate employees to perform them, your business and your customers interest. In the process, you can further increase employee retention. 4.0A team development and a talent management plan is a necessity to ensure cohesiveness and high performance in the marketing team, the marketing manager has a big role in developing his team as well as managing the available talent. As you develop your team, look for people whose strength's compliment yours. Working to your strengths is a great way of saving time, reducing frustration and creating a sense of empowerment. This would allow your team to perform in a role or position where they are likely to perform at their best. Talent management implements the following maxim: 'assign the right employee to the right role in the right environment with the right manager to unleash maximum performance'. 5.0Having a good monitoring system to evaluate financial performance in marketing operations is vital to a company like Taj samudra. Financial measures are important for any company. A note of caution here, since the traditional financial as success return on investment (ROI) and secondary "value shareholder." fact measures Shareholder value is a natural measure of success, and therefore it is priority. Information on customers, markets and technologies are now much more widely available, so not bogged down with oldfashioned financial measures

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1.0 Task 1 Critical Evaluation of the Current Structure and Role of Marketing

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The organization structure of Taj samudra has a hierarchical structure and it is based on functional department wise. This structure has ten layers of organization with fewer and fewer people on higher levels. In this structure, the importance of role determines the position in hierarchy. It has a narrow span of control where a manager controls few subordinates. Therefore, the advantage of narrow span of control provides better communication between managers and their employees and gives managers better control over their specific subordinates. Employees typically appreciate the chance to provide feedback to their manager, which is not as easy in a wide span of control. In addition, supervising fewer employees generally requires less managerial skill. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, and knowledge. The role of each individual will be clear and well defined. But the disadvantage will be that there is one way (Top downwards) communication in the norm. Figure 1 Organizational Structure

Critical challenges the Taj is facing in the marketing structure is that the marketing division lacks performance and high energy to compete with other hotels and the roles and responsibilities arent clearly briefed though they have a good structure, each person from marketing manager to the marketing executive should clearly briefed. Further more Taj Samudra Organization culture should be summarized as a performance-driven culture, where good work results in more work and more rewards and benefits. Taj Samudra should promote a positive work environment for their staff. In any industry, the human factor is critical to ensuring a great guest experience. They should also hire people for their positive attitude, initiative and drive, and not just their skill set Taj Samudra s marketing division should recognize when the team members go beyond their call of duty, and reward their efforts by giving them new opportunities and challenges and responsibilities.

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A positive from the Taj samudras current structure is that they are fostering a team culture, where people want to develop their talents. Taj samudras also aims to value, motivate and develop team members and provide staff with lots of opportunities for cross exposure and career advancement across all its properties worldwide. In addition, each hotel has instituted a range of regular training and development programmers to encourage staff to fulfill their career. With a strong and motivated team, they should be able to ensure that their guests have an unforgettable experience due to excellent hospitality and attentive service. Taj samudras marketing managers revised roles and responsibilities should comprise of mainly Should no what competition is doing. Should have the ability to spot customer trends and act on them first. Must stay up-to-date with news, research, and any other information that directly affects the your service. Promote the sales of Taj samudras products and services that will most benefit the customer, and to establish credibility through communication in a manner that will optimize Taj samudras market share savings, improve the companys efficiency and help achieve the companys mission and goals. Also marketing managers responsibilities involves supervision, marketing, profitability and sales, reporting, purchasing, resale pricing, inventory, service, maintenance and other duties request by the manager. He should staff division and delegate work load that is required to meet market requirements. And also establish and update job description for all positions within the division and recommend selection of employee based on job requirements. He should also review general work assignments for each employee daily. The marketing manager should also adjust staff wor force to fit seasonal need with minimum unproductive labor cost . He should also be responsible for internal employee growth and identify annually any training is needed for individual employees while discussing performance. He should also be responsible for to uphold all Taj policies and ensure that marketing division facilities meet all federal, state and hotel management regulations. The marketing director will be instrumental in coordinating and helping in annual marketing plans. He or She will also coordinate all advertising for the company and negotiate with print and other media representatives to ensure efficient purchasing of advertising. The marketing managers responsibilities will also include reviewing marketing activities with the management such as sales call recap, market share report, sales analysis and strategy review reports, sales promotional efforts and upcoming promotional plans and many more. To get maximum performance from the marketing team the management can implement some steps mentioned below To handle succession planning, promotions, rewards you need to find the leader among performers through detailed analysis of past performance and through performance evaluation techniques. Once

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identified you should take steps to reward performance immediately (before the competition does). Rewards can be variable from cash bonus, promotions vacations and many more. The more satisfying the reward is, the more it will create an competitive environment among co workers and perform better than others. On the other hand a poor reward system will create an indifference of employees towards the performance management system. And through linking performance with pay will help Taj to satisfy the performers and motivate the non-performers. Like in Taj samudra one of the significant reasons why some employees and managers do not welcome performance management system is the fear of exposure of non-performing team members. Unfortunately, in a performance driven culture non-performers have only two options: Improve to a minimum threshold or Exit. A performance driven culture cannot afford to drag the non-performers with it. Because non-performers can spoil the complete show by setting wrong examples for others and bringing down the average performance of Taj samudra.

Based on the performance evaluation data, you can easily find out the gray areas where the nonperformers are lacking. A training and development plan should be chalked out to improve the performance of non-performers. They should be given special attention and time by their immediate supervisors. A suitable training will improve the performance of many of your non-performers.

And those who can't improve with all possible efforts from organization's part must be moved to some other department or be graciously asked to look opportunities outside. As no organization can afford to carry dead wood!

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2.0 Task 2 Critical evaluation between management and leadership

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In this task, a critical evaluation between management and leadership will be done in the context of the revised marketing role, and how management and leadership styles should be changed in order to develop marketing within the Taj Samudra. What is leadership, and what management? Leadership is setting a new direction or vision for a group that they follow, ie: a leader is the spearhead for that new direction Management controls or directs the contacts in a group according to the principles and values that have already been created.

What is the difference between management and leadership? The biggest difference between managers and leaders is the manner in which they motivate the people who work or follow, and it sets the tone for other aspects of what they are doing more Many people, by the way, are both. They have management jobs, but they realize that you cannot buy hearts, especially to follow them down a difficult path, and so act as leaders too.

FIGURE 2- Differences between what leaders and managers do

Managers have subordinates By definition, managers have subordinates - unless their title is honorary and given as a mark of seniority, in which case the title is a misnomer and their power over others is other than formal authority. Transactional authoritarian style Managers have a position of authority vested in them by the company, and their subordinates work for them and largely do as they are told. Management style is transactional, in that the manager tells the subordinate what to do, and the subordinate does this not because they are a blind robot, but because they have been promised a reward (at minimum their salary) for doing so. Work focus Managers are paid to get things done (they are subordinates too), often within tight constraints of time and money. They thus naturally pass on this work focus to their subordinates.

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Seek comfort An interesting research finding about managers is that they tend to come from stable home backgrounds and led relatively normal and comfortable lives. This leads them to be relatively riskaverse and they will seek to avoid conflict where possible. In terms of people, they generally like to run a 'happy ship'.

Leaders have followers Leaders do not have subordinates - at least not when they are leading. Many organizational leaders do have subordinates, but only because they are also managers. But when they want to lead, they have to give up formal authoritarian control, because to lead is to have followers, and following is always a voluntary activity. Charismatic, transformational style Telling people what to do does not inspire them to follow you. You have to appeal to them, showing how following them will lead to their hearts' desire. They must want to follow you enough to stop what they are doing and perhaps walk into danger and situations that they would not normally consider risking. Leaders with a stronger charisma find it easier to attract people to their cause. As a part of their persuasion, they typically promise transformational benefits, such that their followers will not just receive extrinsic rewards but will somehow become better people. People focus Although many leaders have a charismatic style to some extent, this does not require a loud personality. They are always good with people, and quiet style that give credit to others (and takes blame on themselves) are very effective at creating the loyalty that great leaders engender. Although leaders are good with people, this does not mean they are friendly with them. In order to keep the mystique of leadership, they often retain a degree of separation and aloofness. This does not mean that leaders do not pay attention to tasks - in fact they are often very achievement-focused. What they do realize, however, is the importance of enthusing others to work towards their vision. Seek risk In the same study that showed managers as risk-averse, leaders appeared as risk seeking, although they are not blind thrill-seekers. When pursuing their vision, they consider it natural to encounter problems and hurdles that must be overcome along the way. They are thus comfortable with risk, will see routes that others avoid as potential opportunities for advantage, and will happily break rules in order to get things done. A surprising number of these leaders had some form of handicap in their lives, which they had to overcome. Some had traumatic childhoods, some had problems such as dyslexia, others were shorter than average. This perhaps taught them the independence of mind that is needed to go out on a limb and not worry about what others are thinking about you.

leadership without management Sets a direction or a vision that others follow without taking into account too well how the new direction will be achieved. Other people then have to work hard in the trail that is left behind, picking up the

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pieces and making it work. Example: in Lord of the Rings, at the council of Elrond, Frodo Baggins rescues the council from conflict by taking responsibility for the quest of destroying the ring - but most of the management of the group comes from others. Management without leadership Controls resources to maintain the status quo or ensure things happen according to already-established plans. Example: a referee manages a sports game, but does not usually provide "leadership" because there is no new change, no new direction - the referee is controlling resources to ensure that the laws of the game are followed and status quo is maintained. Leadership combined with management Does both- it sets a new direction and manages the resources needed to achieve this. Example: a newly elected President or Prime Minister. This table summarizes the above (and more) and gives a sense of the differences between a leader and Manager. Of course, this is an illustration of the characterization and there is a wide range between the two ends of the scales of which each role can. And a lot of people and handle at the same time and can therefore display a combination of behaviors.

FIFURE 3 Difference between a leader and a manager

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To lead or manage? You need both. The old proverb says that leadership is doing the right thing; management is doing things right. The difference between the two is not as sharp as the saying would suggest, and both are required for effective corporate growth: leadership risk creates opportunities while management strictness turns them into tangible results. However, "If your organization is not on a journey don't bother about leadership just settle for the management", advises John Adair. "There is a direct correlation between how people feel that their managers and they play." Strong leadership is imperative to shape a group of people into a force that serves as a sustainable business advantage

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3.0 Task 3 Prepare an internal marketing plan

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Internal marketing is an important "application". It facilitates communication and helps us to overcome resistance to change. It informs, and includes all staff of new initiatives and strategies. It is simple to construct, especially if you are familiar with the traditional principles of marketing. Internal marketing should involve staff at all levels in effective to understand their role within the marketing process. The Taj samudra internal marketing program could consist of training and staff development, effective communications and integration schemes, designed to enhance knowledge and understanding of the overall marketing orientation within Taj samudra. Below is an internal marketing plan that will encourage adoption, both within the marketing function and the wider organization, of the revised marketing role for marketing, and which will lead Taj samudra a motivated and satisfied customer oriented staff Key concepts of internal marketing include : IM functioning as a continual up skilling process Alignment of the organizations purpose with employee behavior and culture Motivation, reframing and empowerment of employee attitude Inside out management approach Retaining a positive customer experience throughout the business objective

The internal marketing plan will be the key to achieve Commitment to the goal of guaranteeing the best possible treatment to the hotel customers Hotel employees participating actively in achieving the organizations goals Creating a potential for a long term success in Taj samudra

The role of a Internal Marketing Plan

Management of change: Internal marketing should be used to place, and gain acceptance of new systems such as the introduction of information technology and new working practices, and other various changes Building corporate image: Internal marketings role should be to create awareness and appreciation of the Taj samudras aims and strengths as all employees are potential company ambassadors. Strategic internal marketing Should aim at reducing inter-departmental and inter-functional conflict and developing and cooperation and commitment needed to make external marketing strategies work.

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Essentials of a successful internal marketing plan

The four most important areas within the organizations internal marketing programme are: Motivation Co-ordination Information Education

Components of the internal marketing plan:

Information gathering to asses Employee knowledge Attitude Behavior

Management action Selection Training Motivation Direction

Benefits of the internal plan

1. 2. 3. 4. Internal marketing will encourage employees to perform better Internal marketing will give employees accountability and responsibility Internal marketing will create common understanding of the Taj samudra Internal planning will encourage employees to offer superb service to clients by appreciating theirs valuable contribution to the success of Taj samudra 5. Internal marketing will create synergy coordination and cooperation among the other departments 6. Internal marketing will improve customer retention and individual employee development.

Management approach to the internal marketing plan will be:

Managers should lead by example, and set high standards of customer relations and job effectiveness by their own good practice, not by simply dictating rules or making unreasonable demands on employees.

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Internal marketing should move towards an alternative idea developing human potential and accordingly set individual goals so that Taj samudra goals can be achieved through the satisfaction of individual goals Consistency on the part of management, both in action and word, in all dealings with internal and external customers is the foundation for marketing success

Problems that will effect when implementation of the internal marketing plan:
1. Managerial incomplete in interpersonal, technical and conceptual skills is a stumbling block for internal marketing plan 2. Poor understanding of internal marketing concept 3. Individual conflict and conflict between departments might make the implementation of internal marketing difficult or challenging 4. Ignoring and not listening to subordinate staffs might lead to failure of the plan 5. Unnecessary protection of information against employees might be a obstacle in internal marketing . 6. Resistance to change will be a problem when implementing the internal marketing plan since lot of people are comfortable with the way things are and might be scared for change.

Developing the internal marketing plan these factors will be considered

1. 2. 3. 4. 5. Needs and wants of the employees Assessing on skill and knowledge needs Levels of job satisfaction Employee attitude towards the organization and its mission Market definition in terms of formal and informal lines of communication and authoritative powers

Internal marketing plan will be developed considering:

Market segmentation: to ensure affective accurate and appropriate targeting of internal marketing efforts. Bases for segmentation should be determined as a market research or on the basis levels in Taj samudra Marketing action: selection and implementation of appropriate marketing activities should be done to achieve optimum internal marketing success. Better internal communications, teamwork and employee empowerment should be the aims of internal marketing. Marketing communication: accurate and timely spreading of marketing information will be undertaken, both internally and externally. The process will be targeted to encourage participation in achievement of personal and Taj samudra goals. In house notice boards, newsletters, mails, regular team briefings will be encouragement of better two way communications. Page 17

Marketing orientation: Taj samudras marketing objective and mission will be made clear to all employees, and clearly defined individual goals set down to enable personnel to see their own contribution to achieve organizations objectives.

Implementing the plan: Implementing the internal marketing plan will be achieved through cooperation between top management within the organization and functional managers. It requires a flexible approach which will lead to an internal environment which is both committed to Taj samudra goals and responsive to changing organizational needs. The changing need of employees must also be taken in to account.
Marketing audit Marketing analysis in terms of its strengths weakness opportunities and threats Objective setting- review of the organizations objectives in the light on internal marketing and develop internal objectives Strategy development Designing actions programmes managers to determine the most appropriate courses of action and the likely costs and resources required Assigning responsibility for their execution Monitoring and controlling the plan staff performance evaluation and appraisal schemes

If you have an effective internal marketing communications, you will increase the mobilization of the employees in the marketing of related activities. You will improve the recognition of the effect of their actions on the marketing and sales. Good marketing communication internal, like all good internal communications motivate employees to perform them, your business and your customers interest. In the process, you can further increase employee retention.

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4.0 Task 4 Team development and talent management plan

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A team development and a talent management plan is a necessity to ensure cohesiveness and high performance in the marketing team, the marketing manager has a big role in developing his team as well as managing the available talent. Team development Vince Lambordi the great coach of the Green Bay Packers who lead the team to winning nine American League Football seasons once mentioned; leaders arent bon, they are made I am inclined to share that view. It takes time and patience to develop skills of an effective leader. It also takes time to learn how to build steps for developing an effective, profitable and high performance team. The team development plan should consist the following: Have a clear vision Clarity inspires confidence in what needs to be done and in the leader. If the team is, clear of its mission and objectives it will lead to greater commitment and effective teamwork. This can be done by reviewing teams mission and objectives if needed or by simply holding a team planning day. Balanced roles There should be a good balance of skills, abilities and aspirations. Team should have clear understanding of individuals roles to avoid conclusion and as well as to get maximum efficiency. This could be done by analyzing the roles people take and through discussing ways, they can develop the roles. Gelling This should be done through team development activities, OBTs, team culture, mentoring and brainstorming sessions. Members of the team should be viewed as unique people with irreplaceable experiences, points of view, knowledge, and opinions should be contributed to gel more. Communication For team to be productive there should be productive as well as effective communication up, down and across the organization. To develop this : Include a brief check in at team meetings. Each person has two minutes to tell others what is a priority for them at the moment. (Any issues that arise can be put on the agenda for the current or future meetings, or dealt with outside the meeting). And Discuss how to make full use of different communication methods electronic, message books, notice boards, phone, team meetings etc. Teamwork As you develop your team, look for people whose strength's compliment yours. Working to your strengths is a great way of saving time, reducing frustration and creating a sense of empowerment. This would allow your team to perform in a role or position where they are likely to perform at their best.

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Control and review

The team regularly reviews its performance and goals and alters its priorities and practice in the light of review. To develop this: At the end of each team meeting hold a five-minute feedback session on what has been helpful or unhelpful. Develop processes for reviewing how far you are achieving team objectives and standard regular reviews. Invite other teams, external agencies or service users to comment on the teams performance. Bring in a third party observer to comment on team performance Talent management
Talent management implements the following maxim: 'assign the right employee to the right role in the right environment with the right manager to unleash maximum performance'. It measures existing people practices through this simple lens and makes adjustments accordingly. On a competitive business environment, talent management is vital in improving the performance of the business. Talent is a scarce in todays world company and Taj samudra should have a proper talent management plan to get an extra edge and to develop a good team. Here is a simple talent management plan Taj samudra can follow: Talent Acquisition Talent acquisition could be done internally and externally. By reviewing past performances, future potential and through appraisals internal talent can be identified in building companies competitive edge.

Performance Management Performance management can be done through alignment of goals of employees accordingly, through skill gap analysis coaching and developing the necessary areas. Taj samudra also can evaluate performance and manage it through performance based pay.

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Compensation Management

Once worker performance is determined, HR can work with managers to deliver rewards commensurate with levels of achievement. To drive maximum worker effectiveness and productivity, modern compensation plans need to include a mix of base pay, variable pay, and equities.

Career Development One of the greatest challenges faced in organizations is the strategic personal development of their human capital in order to ensure effective use of their talent. In order to properly manage this vital resource, companies must identify their challenges and then implement training and employee development curriculum for improvement. Employee & Career Development strategies help manage employees who need improvement, the area in which they need further development and the progress they have made toward improving the necessary skills, retain and empower your employees by allowing them to develop and manage their career paths and align them with organizational strategy, and identify highly talented and productive employees who can become successors to key executives.

Succession Compensation alone does not ensure maximum performance. Another key issue is for workers to be able to view jobs of interest to their career path, so that they can work to fill any competency or experience gaps. In addition, the organization must ensure that by developing a top-down succession plan, key positions can be staffed by qualified individuals.

Figure 4 Bersin & associates Talent management framework

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5.0 Task 5 Recommendation of a monitoring system to evaluate financial performance

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Marketing professionals are criticized since they are viewed as creative and innovative people that tend to spend the companys money without worrying about how effectively or efficiently it is being spent. Having a good monitoring system to evaluate financial performance in marketing operations is vital to a company like Taj samudra. There is a much quoted saying in management circles: if you cant measure it, you cant manage it, this probably overstates the case for having metrics, but it serves to highlight the need for defining your expectations and gauging your successes accordingly and is the direct counter to the much quoted words of Lord Leverhulme . Monitoring system to evaluate financial performance of marketing operations in Taj samudra should be done in three stages. Financial performance of marketing operations should be monitored, evaluated and reported. KPIs Prosperous business management requires the continuous performance monitoring to generate data to judge the success or otherwise of specific strategies. Performance improvement can being realistic carried out when the management is properly informed about the current performance. To this end, it is important to identify key performance indicators (KPIs) that will enable management monitor progress There are three areas of activities, which is essential to a successful KPI of Taj samudra Measures relating to financial performance and development of enterprises; Views of clients about the range, provision and delivery of the professional service firms services; Point of view of personnel on all aspects of their relationship with the professional services firm

Some examples of KPIs are: New customers acquired Demographic analysis of persons (potential customers) asking to be clients and levels of approval, releases and pending issues. Status of existing customers Customer attrition Turnover generated by the segments of the population of the customer (c'est--dire_le_revenu) Outstanding balances held by customer segments, and terms of payment. A collection of bad debts in the customer relationship. Profitability of clients by demographic segments and chunking clients by profitability.

Many of these indicators of customer are developed and managed with customer relationship management (CRM) software.

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Faster availability of data is a matter of competition for most organizations. For example, companies that have the greatest operational risk / credit (involving, for example, asset management or credit cards) may weekly or even daily availability of analysis of the IRC, facilitated by appropriate IT, systems and tools Balanced scorecards Through marketing Balanced Scorecards, it will help marketing professionals in Taj samudra to describe the marketing processes and measure their efficiency. Mangers can find nessecery information about how their marketing department is performing through balanced scorecards. Scorecard benefits are, that overcomes the miracle in the short term solution and provides a simple overview of the Organization strategic marketing manager. In fact, dashboard should ideally adapted on a single sheet of paper. In fact Kaplan and Norton (1992), Balanced Scorecard authors describe as dials in an aircraft cockpit Profit and loss statement The statement result is also known as a State of the results. As you can imagine, the Profit and loss statement provides a few tips on the effectiveness of the company is run. Typical in a tax return components are of net sales, cost of goods sold, the cost of inventory, if applicable and regular such as Office, payroll, expenses supplies, etc. When the positive and negative finances are displayed on a tax return, the key elements that contribute to loss of profits or for the period can be identified.

FIGURE 5 BALANCE SHEET

The cash flow statement Components of an income tax return can be transformed into a statement of cash flows. The main work of a statement of cash flows will occur in the first column. It begins with an overview of your early cash balance. Second, it lists the amount of each source of income on a line of its own. Early cash balance the total sum of all sources of income is summed for your available cash balances. Then, simply a grand total of all outgoing species. Now, after subtracting the total cash flow of available cash balances you will arrive at the balance of cash ending during the first month. To see how money "flow", simply move the balance in cash next month ending at the top of the column and enter the figure as balance cash start. These steps entering appropriate amounts in each source of income and expenditure and you will be able to monitor your cash flow. What can a record, State of the results and cash flows statement tell you on your marketing plan? Your original owners equity is perhaps too committed to capital to launch an extensive marketing campaign.

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Past results can show advertising should be scaled back due to insufficient inventory. You may have the funds to support a long-term marketing strategy. Financial measures are important for any company. A note of caution here, since the traditional financial as success return on investment (ROI) and secondary "value shareholder." fact measures Shareholder value is a natural measure of success, and therefore it is priority. Information on customers, markets and technologies are now much more widely available, so not bogged down with old-fashioned financial measures

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Appendix 1 Taj Lanka Hotels PLC (Taj samudra/Taj)

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Profile Taj Lanka Hotels PLC (TAJ) , also know as Taj Samudra, is a part of Taj Hotels Resorts and Palaces- a worldwide chain of luxury hotels and resorts. The hotel is owned by Tal Hotels and Resorts LTD a joint venture between Cigen Corporation and the Indian Hotels Company Ltd. With a stake of 58.14% while the Indian Hotels Company Ltd. Is the 2nd largest shareholder with 24.62%. In addition to the ownership and management of Taj Samudra Hotel in Colombo, the company also manages the Taj Airport Garden Hotel in Katunayake located close to the Bandaranaike International Airport from which it receives a management fee. Taj Samudra one of the first city hotels in Colombo, is located on a 12 acre land facing the Galle Face Green with a capacity of 291 rooms including 30 suites, accounting for approximately 13% of the 5 star city room supply while the Airport Garden Hotel comprises of 120 centrally air conditioned sound proofed rooms including 14 suites.

Hotel Operations TAJ located at the heart of Colombo close to the citys business hub has seen lower occupancies over the years mainly as a result of high security barriers in the vincity of the hotel. However, the hotel was recognized as Sri Lankas Leading hotel at the 16th World Travel Awards in 2009 voted by travel agents Worldwide. The hotel was last refurbished in January 2009 and currently comprises of 291 rooms along with 5 restaurants. TAJ is also known to be one of the premier hotels in the country for business meetings and events with 6 banquet hall each of which can accommodate from 50 to 400 guests. The existence of high security and limited access to the hotel resulted in TAJs occupancy dipping below 50% during the last couple of years. During 2007 the hotel recorded an occupancy rate of 64% but since then has seen a decline to 43.8% in 2008 and 43.8% in 2009. Consequent to the lower occupancy rates, the hotel was compelled to lower its average room rate(ARR) to boost occupancy levels. This resulted in ARR falling to slightly over US $ 64 in 2009 from US $70 achieved in 2008.

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India is the single largest customer of TAJ accounting for nearly 55% of total arrivals. The UK and Maldives are ranked 2nd and 3rd with a share of 6% and 2% respectively. Over the years, the hotels Food and Beverages segment has dominated group revenue accounting for close to 50% of total revenue while Accommodation revenue generator contributing between 40-45% of group revenue. In 2009, F&B segment generated Rs. 373 million in revenue - a marginal decline from its previous year. TAJ also receives management fee from its investment in Airport Garden Hotel located in Katunayake base on its Management contract. The hotel has also invested in shares of Taj Exotica Bentota from which receives dividend income. Since 2007, TAJ has being in loss after tax given low tourist arrivals coupled with double digit inflation which increased the costs of operation. In 2009 the hotels losses grew to Rs 143 million mainly as a result of significant increase in its finance costs which include an exchange loss on its foreign currency debt, which accounts for major proportion of its total debt. Since the end of hostilities in May 2009, TAJ has recorded monthly occupancy exceeding 60% except in the month of June and November when occupancies stood at 51% and 55% respectively. In august 2009, the Ministry of Tourism in Sri Lanka decided to implement a specified Minimum room rate for all city hotels from the start of the winter season 2009. Therefore from 1st November 2009, the room rate for a 5 star hotel room in the city of Colombo was prices minimum of US $ 75 and will be further increased to US $ 100 from January 2010. This was a favorable move for TAJ as it has in the recent times charged lower ARR to increase occupancy. The following graph shows the trend in ARR. The ARRs increased sharply in November 2009 to approximately US $ 68 FROM us $ 46 in the month of October. Outlook Tourist arrival in Sri Lanka dipped nearly 20% during 1st 5 months of 2009.However, post war tourist arrivals increased rapidly with tourists arrivals during the period of June 2009 June 2010 growing by approximately 30% over the comparative period in 2008/2009. The Colombo city, Greater Colombo and the South coast of Colombo have been the largest beneficiaries of this influx of tourists with Colombo city recording the highest occupancy in the country of 55.7% up to June 2010.

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With the recovery in the local tourism sector, TAJ expect to enjoy a year round occupancy of 65%. For forecasting purposes, TAJ have assumed an ARR of US 80 for 2011 and US $ 100 in 2012. How ever given the stagnant room supply, TAJ will be in a position to charge a slightly higher premium on ARR once occupancies pick up in the medium term. Additionally, as the Government relaxes much of the security measures imposed in the city of Colombo,

TAJ expect greater contribution from the F&B segment. Further, despite accounting for a relatively insignificant share of profit, TAJ expect to benefit from higher management fees from Airport Garden Hotel. TAJ has invested close to Rs. 439 million in renovating 4 hotel floors including the coffee shop, the swimming pool and the pool area. During its next phase, the company is expected to renovate the remaining 3 floors along with the restaurants and lobby. For forecasting purposes we have assumed an annual capex of around Rs 100 million for the next 3 years.

The following table analyses the sensitivity of group revenue and earnings to changes in the occupancy rate

At the most optimistic scenario(indicated by scenario 2in the above tables), the counter will be trading at close to 16 times and 10 times on 2012 ans 2013 earnings respectively.TAJ accounting for approximately 13% of 5 star room supply in Colombo city is likely to witness higher growth in revenue than forecasted above as excess demand on a stagnant room supply drive ARR higher in the medium term .The counter is currently trading at a significant premium to the market and at a discount to the sector but is priced higher than some of the other 5 star city hotel operation.

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Appendix 2 Role of the marketing division in Taj

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In Taj sales and marketing is been handled by one department (sales & marketing division) and its also evolved in reservations. Sales & Marketing Division is composed of four different departments: Sales Convention Services Advertising Public Relation

Main Responsibilities Responsible for building the image of the corporation among the customers Responsible for putting up a effective sales and marketing plan Responsible for carrying out market research product development campaigns . Responsible of finding new segments in the market.

Organization Chart

Marketing Challenges Based on this valuation, we observed that among five star listed hotels in the Colombo city region Taj has the second lowest net market value of fixed assets per room. Key challenge is repositioning and image building for the Taj Samudra. Upgrading the hotel by renovating identified areas.

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Maintain TATA Business Excellence Model based on the Malcolm Baldridge Awards Scheme of the U.S.A. This is basically a process driven management style working towards achieving excellence in the business you are doing by ensuring high ethics and morals. Making the Taj Samudra "a happening hotel" by bringing in the buzz through upgrading of F&B activities and getting the locals to come back by providing them with creative and innovative options.

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List of references
BIBLIOGRAPHY

Andrew Sherrett,M. (ed) (2009) CIM Course book: Marketing Essentials, UK, Elsevier

Richard Pascale, Managing on the Edge, Penguin Book, pp 65, 1990 One Page Talent Management by Marc Effron and Miriam Ort Chaotics: The Business of Managing and Marketing in the Age of Turbulence [Hardcover]Philip
Kotler (Author), John A. Caslione (Author)

WEBSITES/ARTICLES Hotel SECTOR REPORT BY ASIA SECURITIES RESEARCH MAY 2010

http://www.news.lk/index.php?option=com_content&task=view&id=16305&Itemid=44 Team Players and Teamwork: New Strategies for Developing Successful ... By Glenn M. Parker http://changingminds.org/disciplines/leadership/articles/manager_leader.htm http://www.teamtechnology.co.uk/leadership-basics.html Daniel. F. Predpall, Developing Quality Improvement Processes In Consulting Engineering Firms, Journal of Management in Engineering, pp 30-31, May-June 1994 http://marketingteacher.com/lesson-store/lesson-internal-marketing.html http://www.knowhownonprofit.org/people/teams/effectiveteam/developing http://www.marketresearchworld.net/index.php?option=com_content&task=view&i http://www.tops.lk/article-print-17945-hospitality-industry-the-challenges-ahead-marketingand-selling-in-tough-economic-conditions.html - Hospitality industry - The challenges ahead, Marketing and selling in tough economic conditions Date: Tuesday, April 20, 2010 @ 12:57:55 LKT Topic: Business & Financial News.

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