Needs and Objectives of Innovation:- Due to the unhealthy situation in J&K, late ass’s saw a surge in the foreign traffic to Restaurants. Most of the national hospitality chains contended to show their presence in the state. Tag took the lead and commenced with 2 mega heritage properties and 3 mid size economy properties. Following them was TIC, Amassing for premium brands and other economy class hotels in hordes. This was the time when Chichi Danni understood that if they have to be a part of the rat race, they have to become exclusive.A SOOT analysis done by them was as under Strength- Business acumen, leadership to man and supervise the operations and management, vision based on market research and forecasting of the market needs Weaknesses- entry as a beginner, limited resources, risky project as was situated 20 SMS away from the town, lack of proper infrastructure such as roads, street lights and locale unavailable for transit and access roads, all the heritage tourist locations were situated on the diagonally opposite side of the chosen location making this location too prone to failure.
Opportunity- huge market visible both from the inbound tourists and upcoming middle class, lack of quality food Joints in the city, Threats- Competition with most of the well known brands having goodwill and business acumen with a professional team to handle the show and to bear losses and liabilities as multi property projects They also had some pluses with themselves, which augmented their belief in the project- Low cost of land as the land lay in a nil-low tourist traffic zone Low cost of Employment- Rural people who took up employment as the building team ND subsequently were trained to be a part of the core team of the Hotel.Thus the cost of employment was low and consistent and the project could finish in record duration Need for a Food Joint- Excepting one food Joint in the main city, no other food Joint offered 100% clean vegetarian food and that too supported by ethnic environment. Maria’s and localities languished for it.
Competitive Food Cost- Due to High ROI, they could offer food at a marginal price making the product too price competitive unmatchable by none.