The jury is out on whether the six-month-old Vivanta by Taj has been able to differentiate itself from Indian Hotels’ other brands.
The Taj group of hotels recently made headlines with its maiden entry into Srinagar. What was interesting was that the hospitality chain decided to enter the Valley with its latest brand, Vivanta by Taj, rather than bringing in its iconic luxury product – the Taj.
Even as Indian Hotels, the owners of the Taj Group of hotels, is on a clear mission to expand the six-month-old ‘Vivanta’ footprint across India, with Srinagar being the 20th in the list, opinion among brand experts is divided on whether the hotel chain has been able to get over the initial confusion about what Vivanta stands for. Some of the common questions are — Is Vivanta a business hotel or a holiday destination? Does it represent premium category or is it more basic in nature?
Santosh Desai, managing director and CEO, Future Brands, says the customer has to know what to expect when he is booking into Vivanta, just like he knows when he books into a Taj Palace. The new properties in Goa and Bangalore, for example, are very different from the existing Vivanta hotels. According to Desai, Oberoi and Trident are great examples of two different hotels coming from the same group with very sharp branding. In the case of Vivanta by Taj, some hotels are very stylish while others are basic, he adds.
Last year, Taj Group of Hotels rebranded some of its properties as Vivanta for the work-hard and play-hard variety. Although the Vivanta rebranding was supposed to follow the launch of the Gateway hotels in 2008, it got delayed first because of the economic slowdown and then the 26/11 terror attack, says Ajoy Misra, Senior Vice President, Sales and Marketing, Taj Hotels Resorts & Palaces. Currently, there are 20 ‘Vivanta by Taj’ hotels across India, and another 30 are in the offing.
Rajeev Sahni, Partner, Hospitality, Ernst & Young, says “While the target audience is defined, it is not yet clear in a consumer’s mind whether it is a resort or a business hotel. Both are very different from each other.” He’s quick to add though that these are early days in its brand journey.
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Vivanta in Goa is located at a holiday destination providing its customers a laid back resort like feel, but the one in New Delhi, earlier known as Taj Ambassador, is positioned as a business hotel. Some others feel Vivanta has not been adequately promoted to generate enough brand awareness till now.
But others have a more charitable view. Manav Thadani, Managing Director, HVS India, says, all changes are difficult, but Taj is following the international trends. If brands have to grow, it is important to create sub-brands”.
Most international brands have multiple brands offering customers choice at every price point: Starwood and Marriott have 23 each, Accor has 18.
Over the years, new segments have emerged within the hotel industry and one brand doesn’t fit all. Within cities too, there are different markets. South Mumbai, for instance, could have a different appetite for hotels vis-à-vis the business district of Bandra-Kurla. What appeals to one set of customers can deter or intimidate another set of people.
Explaining the thought behind the rebranding exercise, Lulu Raghavan, country director, Landor Associates, says that the value of Taj was being diluted by properties that should be in the other segments. Not all properties called Taj deliver that kind of luxury, and therefore the “premium” category was named Vivanta. The other two segments of the Taj Group are called Gateway (meant for the mid-market segment) and Ginger hotels (budget category). Landor Associates, a leading strategic brand and design consultancy firm, was involved in the Vivanta branding exercise.
Taj’s Mishra says the most critical changes will be perceived in the style of services and the freshness of experiences. The hotels follow clearly defined brand standards. There is also an extensive training programme in place to help maintain brand consistency.
Misra says with the hospitality industry getting fragmented, hotels want to tap every segment of the market. Vivanta has been designed keeping a specific target audience in mind — one who is young and on the go, does not want a typical heritage experience but wants something contemporary.