2. INTRODUCTION
• Ritesh Agarwal is the founder and CEO.
• OYO started with one city and one hotel in Gurgaon in January
2013.
• OYO room is India’s largest branded network of hotels.
• It operates in more than 500 cities with 18000 hotels in India.
• Oparetes in more than 80 countries.
• Headquartered and operated by GURGAON HARYANA.
• First started by name of ORAVEL STAYS PVT LTD. In 2012
3. RITESH AGARWAL
• Ritesh Agarwal born in cuttak, Orissa in the year
1993 on 16 November.
• He was born in a middle class marwari family.
• He dropped out college in 2012 when he was 17
year old for his start-up.
• He started his first venture in2012 and called it
ORAVEL STAYS but it didn’t work for long as he
has to guit ORAVEL.
• He realized the basic necessity of any traveler
which is to find good, affordable and available
hotels to stay.
• He started OYO room in 2013.
4. OYO: AGGREGATOR BUSINESS MODEL
• OYO Rooms business model was used to be a
hotel aggregator.
• Lease a part of hotel’s inventory beforehand.
• Organize those hotels rooms under their brand
name.
• These partner hotels provide standardized
service to customers of those rooms as it was
decided in a contract with OYO.
• Booking were made through the OYO ROOMS
website and mobile application.
5. OYO: FRANCHISE BUSINESS MODEL
• The company builts its brand equity.
• The founders decided to pivot it’s business
model to pure franchise business model in
2018.
• The company doesn’t lease the hotel Rooms
anymore, but ask the hotel partner to
operate them as franchise.
• They have partnered with hotels and made
them work with them under their name.
• The company now get 90% of tlits revenue
from hotel under the franchise model.
6. MARKETING STRATEGY
• To retain its ranking and be a Step ahead of the competitors OYO is
focusing on the mass as well as on digital marketing section
aggressively for lead generation and customer acquisition.
• It is strategically using all means of social media by targeting potential
customers based on their interest, behaviour and other parameters
which are easily available via digital marketing.
• It has strong social media presence on Facebook with over 11 lakh
fans and a Twitter following of over 65000 followers the brand claim
to have over million app downloads with good no number of active
users.
7. SOCIAL MEDIA
Facebook
• Contest announcement with hastags
such as #Recognize me #OYO Belieber
• Update on new offers.
• Contact number for support and
assistance.
• Response rate is high which is
90%which is better as compared to
competitors.
• Average response per post 50 – 300.
Twitter
• Updates on new offers with eye
grabbing images as well as videos
occasionally.
• Sharing pictures of customers have
used the services .To attract more
customers.
• Using hastags such as #aageseright #
Hello Nepal #Enrout To OYO.
• Highly responsive to customers
queries, feedback and complaints.
8. PESTEL FRAMEWORK
Political factor
• Starup India, Make in India, Digital India
Economic factor
• Increase in investment for start ups, there startup like OYO became
viable with reduce risk
Social factor
• OYO Rooms was started mainly keeping in mind the middle class
people.
• Requirement of systematic hotels in India.
9. PESTEL FRAMEWORK
Technology factor
• Introducing the mobile app in both android and O.S platforms.
• Concentrate aggressively on mass and digital marketing.
Legal factor
• OYO has signed MOU with Uttarakhand government.
• OYO has also partnered with Indian Railways to provide budget
accommodation.
Environmental factors
• Use of social media and other advertising platforms.
• Standardized aggregators of budget hotels.
10. 4P’S OF OYO
1. Product: OYO Rooms services are particularly customized for budget
customers, but keeping in mind their basic needs of WiFi, cleanliness,
television and air conditioner.
2. Price: OYO Room’s services are extremely price conscious.
3. Promotion: OYO has been spending its advertising dollars on the digital
domain and has been yielding good results from it. It has Facebook
presence of over 11 lakh fans and a Twitter following over 65000
followers. The brand claim to have over million app downloads with a
good numbers of active users.
4. Place: large part of their audience resides in small towns and city
outskirts . However they also receive huge traffic in metro cities.
11. SUMMARY
Ritesh Agarwal dropped out college at the age of 17 to start his
business and he started ORAVEL stay in 2012 but it doesn’t work
then he stated oyo Room’s in 2013 .the Oyo used to lease a part of
hotel and organize them under their brand name and provide
booking facilities through mobile aap but in 2018 they start franchise
based model they partnered with hotels and make them work under
their brand . They used social media for marketing very effectively
which give them edge over there competitors to engage more
people they stated campaign on social media . Oyo growing so fast
and today it is expande to more than 80 countries.