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Marketing Management of OYO (Leading Hospitality Industry)

University: Regent College London

  • Unit No: 9
  • Level: Undergraduate/College
  • Pages: 7 / Words 1847
  • Paper Type: Minor Case Study
  • Course Code: R/508/0486
  • Downloads: 967

Table of Content

Question :

The objective of this report is to evaluate marketing management practices that can assist an organisation to develop a positive relation with target customers. The requirement of marketing management is to develop size of market.

  • Provide an overview of industry, unique selling proposition and market positioning.
  • Conduct market audit of OYO and discuss information in the context of market attractiveness and market growth.
  • Provide a competitor analysis by considering three main industry players.
  • Discuss the marketing mix practices that can assist to take an action against the market gap for OYO.
Answer :
Organization Selected : OYO


In present scenario, globalisation has made international marketing management as a fundamental aspect for the marketing strategy of the firm. Marketing management is a function which needs to be fulfil by every business association at in the best possible way. Although, the term marketing means to promote a product by recognising needs and wants of target audiences; it is required so as to satisfy market needs. For effective marketing it is also essential for management to make several strategies and policies so as to gain high competitive edge and increase market share. Along with this, marketing management is a process of controlling a product and then channel it in order to meet customers' desire. Its main objective is to make decisions towards a product and formulating a framework to make profits through optimal utilisation of available resources (Kotler, 2015). The entire assignment is based upon OYO Rooms; it offers rooms at affordable prices that no other players in the budget segment offers today. Apart from this, the report has described a marketing audit of the company so as to determine all those factors which have a vast impact on growth and success of business association. A competitors' analysis has been made by considering three major players of same industry. Readers will also come to know about marketing mix actions in order to fulfil the gap between present marketing strategy of the firm and external environment.


Hospitality can be defined as a kindness while welcoming guests, visitors or strangers. It consists with relationship between host and guests or may be a practice of being hospitable. Evidently hospitality industry is rapidly thriving over the world when other sectors are struggle to regain from credit crunches and economic downturns. In India, number of visitors come every year, in this manner hospitality industry act a major engine of economic growth amd improves country's image. The growth in hospitality industry and its contributions towards GDP are continuously remain higher that helps in improving economic condition of the nation as well. OYO Rooms is the selected organisation for this completion of this report; its an Indian hospitality service and budget hotel network which was established in 2013 by Ritesh agarwal. Since, the firm has grown to across more than 8000 hotels in 200+ cities of India, Nepal and Malaysia. In late 2017, OYO launched OYO Home, an Airbnb-like marketplace for short-term managed rentals. The firm focused on offerings hassle free and standardized experience of staying at an unmatched price. In this manner, OYO provides same amenities and awesomeness hotel experience over all its rooms. Along with a clean room, they also offer, or claim to offer, quality and standardized services like in-room WiFi, breakfast, AC, backup power, etc at budget prices. It means people feel in the same way as they feel at home. The business association uses most advanced hospitality tech which gives shape to its operations. It introduced pioneering technology so as to deliver better and efficient services, management and CRM. People can book their orders or rooms through mobile apps of OYO in just just 3 steps or within 10 seconds.

Unlike any hotel chain, OYO doesn't operate and own most of its hotels, actually it ties up with existing hotel chains and ensure to deliver defined quality to guests who book OYO. In many cases, guests can book the same hotels through hotel aggregator websites or directly from the hotel reservations desk, often at the same price (Belz and Peattie, 2012). However having the brand gives the comfort of familiar brand and quality to guests.

Apart from this, in order to retain its top ranking from competitors. OYO is emphasised on digital and mass marketing which aggressively leads customer acquisition. The brand claims to have over 5 million active users of its mobile applications whereas the company also has strong media presence on Facebook, i.e. more than 3 Lakh followers. It also organises marketing and promotional campaigns on social media channels in order to attract more and more people.

Unique selling proposition of the company -

Finding hotels is not a big problem but finding the best one is; it encompasses with trust factor. The founder of the company invested to provide standard hotel rooms over the nation. The entire business model is rely upon customer experience by an innovative amalgamation of digital technology and implementing quality control measures which supports to improve customers' experience in a certain time period. The brand has a tie up with Airtel so as to deliver in room wi-fi services at no extra charges. OYO Rooms has started two new divisions so as to raise up the market share of the firm such as -

  • OYO premium – By coming up from budgted room segmentation, OYO rooms has started to provide premium rooms services in metro cities with an aim of raising client base. The concept has been taken by considering business travellers and families who wants high quality and luxurious accommodation services while staying in hotels and read to shell out extra money to higher comfort.
  • OYO WE – Its a women exclusive brand that is started by the company in order provide better and safe accommodation services to women travellers; they all will be treated by ladies staff and peculiar amenities of women (Hutt and Speh, 2012). The main features involves in this category are – automatic locks of rooms, full length mirror, clean and hygienic wash rooms, hair dryer, availability of doctor and beauty products on call. Beside this, there is a facility of cab services and library with women magazines. The entire concept has been designed by considering maximum satisfaction and comfortless to women in respect of safety and security as well.

Students may also like to read: Sales development and merchandising

Marketing audit

Marketing audit is a comprehensive assessment of marketing activities, aims and objectives. By using this tactics, marketers enable to take a look whether or not their marketing efforts are planned and managed. Along with this, a marketing audit is a great way of examining the entire marketing plan and then make necessary adjustments so as to make it more effective. It helps management to getting back in touch with marketing efforts and linked them with firm's goals and objectives (Malhotra and Peterson, 2014). In addition to this, marketing audit looks upon internal factors, i.e. efficiency of organisation and marketing activities, but also involves external environment, I.e, customers, competitors etc. By considering all the fundamental components of a comprehensive and systematic marketing audit are the following:

SWOT analysis of OYO Rooms


OYO Rooms is one and only brand which provides accommodation services to at reasonable prices to people (Wilson and Gilligan, 2012). One of the major strength of the company is its strategic location which allows easily arrival to customers, employees.

The firm has bring standardisation in its services by modifying them at premium level and the room suits to customers' needs. There are several 5 star hotels which have been taken OYO franchisee and thus it take guarantee of qualitative and value added services of all OYO rooms wherever they are situated.

The brand has started off with a one room one hotel thing but it has spread over 8500 properties and additionally have a stock list of 4000 motels and home-stays. It shows that OYO is rapidly growing in market due to its efficient and well designed room services.

The founder of OYO is a youngster who has won lots of accolades in entrepreneurship; it shows the person has a great enthusiasm of doing any work or activity (Chan, He, and Wang, 2012). Thus, any strategy which adopted by the firm since beginning was totally fresh as this the reason OYO has attained instant success in a minimum time period.


OYO does not have ownership any of its rooms, the firm is following strategy of co-branding. Its a hotel accumulation platform in which buyer and seller transact with each other by common website OYO.

Although, OYO is trying to putting standardisation in its services of each room; it is depend upon the prices that it charged. But the firm is not able to deliver same kind of services that it promises. It puts a question on reliability and quality of accommodation services.

Hotels that are on a tie-up with Oyo can also loop in other agents for which Oyo cannot do anything much to circumvent. In this relation, business model solely thrive in market that is quite risky for long run (Sheth and Sisodia, 2015).


As the world is facing situation of aftermath to repeated recessionary trends, unemployment, pay cuts and mostly hotels are in troubled to put a balance between demand and supply. Thus, it enhances scope of new entrepreneurs who have innovative ideas as most of hotels wants to take external support in market.

In past decades, there was a trend of luxury hotel but now people focuses on saving and minimising their spending on such accommodation services (Moutinho and Vargas-Sanchez, 2018). In this manner, introduction of the budget hotels, i.e. OYO rooms will provide boarding and loading facilities that are high at demand in present scenario.

Due to emerging economics, wide range of people travel for various purpose, i.e. commercial and non-commercial purpose; it has driven up profusely.


Due to low barriers of entry, most of the entrepreneurs are tend towards aggregating services. Several online websites like – trivago, makemytrip, goibibo etc. which also provides same kind of services like – OYO.

In today's aura, people are concerning about safety and there is a negative image of unsafe stays in hotels. Various cases of harassment are also increasing (Liu, Kasturiratne and Moizer, 2012). At this point, OYO does not provide guarantee of safety and security in hotels.

Political unrest in a nation also reduces tourist traffic and consequently affects business of the hospitality industry.


You may also like this: Law of Business Organisation as Jupiter Publication Ltd.

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