The hotel industry in India is at $17 billion (Rs 87,601 crore) currently.
Thirty per cent of the sector is organised.
An additional 20 international brands are expected to come to India in the next two years.
About $12 billion (Rs 61,836 crore) is the expected investment in this sector by 2011.
Within the sector that is organised, the 5-star hotel segment contributes 58 per cent
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Marketers often give mature consumers on the other side of the age of 50 a miss, thinking they are stuck in their habits. But it often turns out that with children grown, debts cleared and their professional maturity achieved, these people are ready for new experiences and solutions. They are willing to explore brands and products, old and new, that can help them live better in new circumstances. It is true that the 50-plus market needs a unique marketing that most organisations are not prepared to offer.
In large measure, companies lack the mature employees, depth and expertise to successfully target products at greying demographics. Companies who are willing to tread the less-taken road of targeting this audience could start with a cultural revamp of their organisations. Marketers learn their trade in their 20s, manage brands in their 30s, and move to general management in their 40s. So, companies must slow this turnover and allow marketers to age with their customer base.
50-plus: A Market That Marketers Still Miss
By Richard Rawlinson and Natasha Kuznetsova
strategy+business
Spring 2009
Read this article at http://www.strategy-business.com
Organised retail had been simultaneously facing stiff opposition from sections claiming to support unorganised retailers and scripting a buoyant story riding on the country’s growth. But the slowdown has dealt a staggering blow. One of its very first home-grown players — Subhiksha — is mired in deep trouble from a severe cash crunch, even as other retailers resort to various measures to save their businesses from damage. So, is the Indian retail story over for now? Experts ask us to take heart since this might a passing phase, albeit lasting for another 12 months.
Trouble in Store: A Setback for India’s Organized Retail Sector
Knowledge @ Wharton
February 2009
Read this article at http://knowledge.wharton.upenn.edu
In tough economic times, some companies have outmanoeuvred rivals to become market leaders through value-for-money strategies. That is, they have enabled recession-hit consumers to economise (do less and spend less), become more efficient (do the same for less), or become more effective (do more but spend no more).
Companies must develop expertise in cost innovation. That may not be good news for many US, European and Japanese corporations, because multinationals from emerging markets, which have long experience with value-conscious customers, have already built cost-innovation capabilities that are unlocking mass markets in both developing — and developed — countries.
In response, the authors argue, Western companies should turn to developing countries for vital lessons in lowering the cost of building brands and developing and manufacturing products.
Multinationals that fail to learn from emerging rivals are unlikely to weather the recession well.
Value-for-money strategies for recessionary times
By Peter J Williamson and Ming Zeng
Harvard Business Review, March 2009
Subscribe to this article at http://hbr.harvardbusiness.org
Financial risk management is hard to get right even in the best of times. Any of the six oversights below might lead to failure:- Relying on historical data: The statistics of the past three decades would have been sorely unprepared for the volatility of house prices in 2007; Focusing narrowly: A daily Value-at-Risk (VaR) measure assumes that assets can be sold quickly or hedged, so it doesn’t apply to portfolios with which the firm may be temporarily stuck; Ignoring knowable risks: Measuring market, credit, and operational risks in isolation rather than cross-organisationally blur new risks; The other loopholes include concealed risks, failing to communicate and the inability to manage real-time.
Six ways companies mismanage risk
By René M Stulz
Harvard Business Review, March 2009
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