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CASE 3:

NAMMURA HOTELS

Presented by:
1. Vivek Mishra
2. Md. Ejaz Reza
3. Pranay Bisht
4. Rachit Arora
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Presented to: Prof. Hitesh

Manocha

Case in brief
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CEO of Nammura Hotels Mr Krishna Hedge.

18 years of experience of working for 5 star
hotels in various countries.
Location= Bangalore
Employee strength= Over1000 (2007)
Revenue=Rs 400 Million
Dealing with the requirements of 30 Multinational
Companies
Focus on corporate customers who accounted
for 80% of the business.
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Nammura hotels business strategy:

Quality

food of international standards to local

customers
Reasonable prices

Innovative & unique system adopted centralised

food production & delivery system
Wastage of food brought down to 1% (2007)
No separate marketing department
Have monthly reviews & meetings to discuss
menu, price & growth of the company.
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Target market segments:

COUNTER SALE: Introduced to minimize waste, extra

food sold across counters for those who wanted good

food, price was cost+3%.
WHOLESALE: Served needs of small entrepreneurs who
bought food at low cost from Nammura & sold it to industrial
customers, response from these clients were good.
HOME DELIVERY: Home delivery to households,
generated word of mouth communication for the hotel.
BANQUET: Provided meals to organisations during
seminars & meetings like LIC National Meet (10,000
meals/day) & Bangalore Hubba (25,000 people per day)

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Major segment
generating 80% revenue, included 30
business organizations (mainly MNCs from
software, BPO, textile & engineering industry).
MNCS demanded nutritious & hygienic food
Created a separate corporate kitchen with
brand name right caterers to meet
hazard analysis critical control point
standards of NASA & USA.
This separate kitchen gave hotel competitive
advantage as no other competitor followed
this standards.

CORPORATE

SERVICE:

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Organisational chart (NAMMURA HOTELS)

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Competition
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No direct competition because of unique centralized food

production & delivery.
Right caterers though had competition from other caterers.
Right caterers however had an edge because of its
corporate kitchen.
To sustain competitive advantage:
- Nomura focused on innovation
- ensured consistency of quality and taste.
- No synthetic colors and additives as well as well as harmful
chemical were used.

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Retaining Employees and customers

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As the hotel was considering expansion into

restaurants and lodgings retaining employees and
customers was important.
For Employees:
- Nomura offers free food, shelter and medical service
to its employees.
- Started opening sock option and loans without interest
for its employees.

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For Customers:
- Depended on satisfied customers word of mouth.
- Radio & T.V. programmes on cooking conducted
by Krishna Hegde gave good publicity for the
hotel.

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