BASAVESHWAR ENGINEERING COLLEGE BAGALKOT (DEPARTMENT OF MANAGEMENT STUDIES) PRESENTATION ON SERVICE MARKETING (HOTEL INDUSTRIES)
Team members: Praveenkumar G H Manjula Rolli Sushma Janmatti Abdul salam Manjunath M
MEANING OF SERVICE INDUSTRY:An industry made up of companies that primarily earn revenuethrough providing intangible products and services.Service industry companies are involved inretail, transport, distribution, food services, as well as otherservice-dominated businesses. Also called service sector, tertiarysector of industry.
INTRODUCTION TO THE SERVICE INDUSTRY: Service Sector in India today accounts for more than half of Indias GDP. The various sectors that combine together to constitute service industry in India are: Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking
Contd….. Insurance Business Services Public Administration; Defence Other Services
Introduction of Hotel Industry: Hotels have a very long history, but not as we know today, way back in the 6th century. Hotel can be classified into different categories or classes, based on their operational criteria. For example the type of accommodation they provide, location of the property, type of services provided, facilities given and the clientele they cater to can help categories hotels today Hotels today are basically classified into the following categories:
Contd…… According to market segment. According to size. According to property type. According to services level.
Indian Listed Star Hotels: Name of the hotel Year of establishment Founder Place The Indian Hotels 1903 Jamsetji N Tata Mumbai Company (Taj) ITC/ grand chola 2012 Y. C. Deveshwar Chennai The Leela Group 1957 Capt. C.P. Krishnan Mumbai Nair The EIH Ltd (The 1934 Rai Bahadur Mohan Delhi Oberoi Group) Singh OberoiRoyal orchid central Bellary keerti hotel Clarks shiraz hotel Agra
INTRODUCTION TO HOTEL INDUSTRY:The hotel industry is a broad category of fields within the service industry thatincludes lodging, restaurants, event planning, theme parks, transportation, cruiseline, and additional fields within the tourism industry. The hospitality industry isa several billion dollar industry that mostly depends on the availability of leisuretime and disposable income.A hospitality unit such as a restaurant, hotel, or even an amusement parkconsists of multiple groups such as facility maintenance, direct operations(servers, housekeepers, porters, kitchenworkers, bartenders, etc.), management, marketing, and human resources.
SEVEN P’S OF SERVICE INDUSTRY:Product Physical features, quality, accessories, Packaging, warranties, brandsPlace Channel type, Outlet locations, Transportation, Storage.Promotion Sales people, Advertising, Sales Promotion, Publicity.Price Discounts, Allowances, Price levels.People Employees, CustomersProcess Flow of activities, Customer InvolvementPhysical Facility, Equipment, Other Tangiblesevidence
TOTAL NUMBER OF HOTELS IN BAGALKOTRestaurants 11Hotels 11Khanavalies 243Small hotels(road side) 12Canteens 2Snacks centres 83Total 350
INTRODUCTION TO PAKWANN:Name of the business RestaurantYear of establishment 2011Name of the partners Mr. Anand Agarwal Mr. Pavan KulkarniAddress College road, 19th cross, vidyageri, Bagalkot.
NUMBER OF EMPLOYEES IN PAKVAN:Owners 2cooks 5waiters 6cleaners 3others 3TOTAL 19
SEVEN P’S OF PAKVAN RESTAURANT:Products PriceVariety of food items: North Indian dish: per plate 110 RsNorth Indian dish, South Indian dish, South Indian dish: per plate 110 RsChinese, Snacks, Ice-creams, cold drinks, Chinese: per plate 50 Rssweets(22) Snacks: per plate 100 Rs Sweets: per KG-200 Rs Cold drinks: 14 Rs Ice cream: family pack 2 KG-115 Rs
Contd...Place PromotionCollege road, 19th cross, vidyageri, Advertisements in local channels,Bagalkot. Banners, Pamphlets.
Contd...people processEmployees, students, public people Flow of activities, Customeretc. Involvement.
Service encounter chart for Pakwann Restaurant: Welcome Interaction with customers(order) Service delivery Accepting service Billing Check out
DIMENSIONS OF SERVICE QUALITY:Empathy Good customer relationship, responding to their needs and wants.Reliability Promise and according to that they will provide services.Responsiveness Employees are liable, shows honesty with their customers.Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence.Tangibles Furniture, music, lightings.
How long have you visiting Pakwaan? 10% 12% 0 to 4 month 4 month to 6 months 54% 6 to 8 months More than 8 months 24%
How many times do you visit PAKWAAN in a month? 12% 36% 0 to 2 times 3 to 5 times More than 5 times 52%
Who influenced you to go to Pakwann? 12% 20% 10% Family Member Friends Advertisement Others 58%
why do you prefer Pakwaan restaurant? 14% 34% For refreshment For fun For party32% Others 20%
Rank the following factors according to your expectation forthe service provided by the service provider. Explains all items regarding meals 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
High speed service 2% 4% 14% Highly dissatisfied46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
Are you satisfied with the services provided by the Pakwaan? 2% 6% 8% Highly dissatisfied48% dissatisfied Neutral Satisfied Highly satisfied 36%
Are you satified with the way the empolees care with customers? 0% 8% 24% 12% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 56%
Are you satisfied with the pamphlets distributed by the Pakwaan? 0% 4% 16% Highly dissatisfied 44% dissatisfied Neutral Satisfied Highly satisfied 36%
Are you satisfied with the services provided by the Pakwaan as promised with you? 2% 4% 16% 34% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 44%
Are you satisfied by the services of handling customers problems in Pakwaan? 0% 4% 32% 28% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 36%
Are satisfied with the way of Pakwaan informs about the price and quality of the service? 4% 4% 16% Highly dissatisfied dissatisfied Neutral 52% Satisfied Highly satisfied 24%
Are you satisfied with promptness of Pakwaan in providing service to you? 0% 4% 16% Highly dissatisfied 44% dissatisfied Neutral Satisfied Highly satisfied 36%
Are you satisfied with the willingness of the empolees to help the customers while providing services? 0% 4% 20% 36% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 40%
Are you satisfied with the way of employees behave with you in Pakwaan? 0% 2% 16% Highly dissatisfied dissatisfied Neutral Satisfied 58% 24% Highly satisfied
Are you satisfied with the employees eagerness of instilling confidence in customers? 0% 4% 20% 16% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 60%
Are you satisfied by the Pakwaan service of providing customers best interest in all the ways? 2% 6% 38% 20% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 34%
Are you satisfied by the Pakwaan services of providing the products that best suits you? 0% 4% 20% Highly dissatisfied dissatisfied 50% Neutral Satisfied Highly satisfied 26%
Are you satisfied by the overall service quality of the Pakwaan? 0% 4% 20% Highly dissatisfied dissatisfied 50% Neutral Satisfied Highly satisfied 26%
Are you satisfied with the sitting arrangements in Pakwaan? 2% 6% 12% Highly dissatisfied44% dissatisfied Neutral Satisfied Highly satisfied 36%
Are you satisfied with the interior decoration of Pakwaan? 0% 4% 28% 32% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 36%
Are feel comfortable in Pakwaan while receiving service? 2% 4%34% 20% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 40%
Customer loyalty:In Pakwaan more customers are loyal because, they treatcustomers with friendly nature. And also because of theirand quality service.
Customer relationship: In Pakwaan they are managing good customer relationship from their quick reactions with customers and also they are maintaining relations with Banks, Education institutes in Vidyagiri area.
Service recovery:Service Failure: Slow service Wrong Billing Conflicts with customersService Recovery: Quick service Discounts in Billing Smooth handling.
New Service Development process:Execution Stage Planning Stage Full People Design Launch Products Tech- nology Systems Developm Analysis ent
Process of Restaurant: New Process design Analysis of design Development of new design Introduction of new service
Business Strategy Development or Review: First step is to develop the mission and vision to implement the new process. Mission: Providing good service and making customer satisfaction.New Service Strategy Development: New service is food parsal (family pack). The strategy provided by the pakwaan is to provide good service than the present service through phone. And door to door service.
Idea generationThis is demanded by customers onlyConcept development and evaluation: Once the idea of service is fit for both the customers and the employees, then it is ready for the implementation.Business analysis: Based upon existing service and new idea it is analyzed and introducing new service. It will give more satisfaction to the customers.
Blue print of restaurant : Physical Exterior Tray and Meals FP and taste Bill evidence packing presentation of snackscustom Arrive at Check availability Receive Order meal Receive food Ask for bill Pay and leaveers restaurant snacks Greet and take Serve snacks Take food Deliver food Process bill order orderContactemployees Prepare snacks Order to kitchenSupportprocesses Prepare Payment Food system(Back house)
Hard and soft CDS: Hard CDS: Delivering the services in the time, Approaching at the right time to customers. Soft CDS: Motivating the employees to provide good service with smile and care.
SERVICE TRIANGLE Company (Management) Internal External Marketing Marketing enabling setting promises promises Employees Interactive Marketing Customer keeping promises
Three points of the triangleCOMPANY- PAKWAAN RESTURAENT OWNER- ANITA KULKARNI ANAND.AGARWALEMPLOYEES-7 MEMBERSCUSTOMERS-STUDENTS LECTURES OLD AGE PEOPLE BUSINESS PEOPLE HOUSE HOLD PEOPLE
Internal marketing: COMPANY- Owners will give all information about there service to there employees with respect of there menu and also they will give information regarding there service .like cake ,sweets..
EXTERNAL MARKETING In hotel external marketing like- Pamplets Tv adds Charity Cycle advertising
Interactive Marketing According to menu available from the company employees interacting with customers. They will take orders from the customers, provide service according to that. Lastly they will take feed back from the customers.
Are the three sides of the triangle well aligned? yes
Provider GAP 3CUSTOMER Service DeliveryCOMPANY GAP 3 Customer-Driven Service Designs and Standards
Focus on a service organization. In the context you are focusing on, who occupies each of the three points of the triangle? Company : pakwaan restaurant Employees: waiters, Owners, cooks, cleaners. Customers: students, business man, middle class people.
How is each type of marketing being carried out currently? Internal marketing: promises are delivered to the employees with the services which are not kept then the customers become dissatisfied and leave the restaurant. external marketing : here the promises are made to the customers. Promises made must be kept. Interactive marketing: here the employees will finally deliver services to the customer.
Are the three sides of the triangle well aligned? Yes the three sides of the triangle are aligned. All the three sides of the triangle are essential to complete the whole, and the sides of the triangle should be aligned.Are there specific challenges or barriers in any of the three areas?Specific challenges: Fast Service Shortage of space.
How is the service organization doing on the three sides of triangle?i. External Marketing:- By making the promises to the customers and delivering the same .ii. Interactive Marketing:-the waiters, will deliver the service to the customers.iii. Internal Marketing:-By enabling the promises through recruiting, training, motivating, recording and providing equipment and technology.
What is being promoted and by whom?• The product and services like North Indian dishes, South Indian dishes, snacks are promoted by employees of the restaurant.• How will it be delivered and by whom? It will be delivered by the process and by the help of physical evidence and it will be delivered by the employees.• Are the supporting systems in place to deliver the promised service?• The physical evidence of the restaurant is most pleasant which attracts the customers to come to restaurant and experience the services.
The Service Profit Chain in restaurant ER Revenue Growth ExternalInternal Service CS CL ES SQ ValueSQ-Service Quality EPES-Employee Satisfaction ProfitabilityER-Employee RetentionEP-Employee ProductivityCS-Customer SatisfactionCL-Customer Loyalty
Boundary Spanners Boundary Spanners Employees :of the restaurant i.e., owners, waiters, cooks, cleaners. Classification:• Subordinate Service Roles: waiters, cleaners, cooks. Professional Service Roles: Owners.
Sources of Conflict for Boundary-Spanning Workers• Person vs. Role (Agarwal v/s His role)• Organization vs. Client(Pakwann v/s the employee)• Client vs. Client (employee v/s employee)• Quality vs. Productivity(Services provided v/s productivity of the services)
Cont… Person vs. Role: Here there is a conflict between owners and his personality . Ex: The restaurant employees are forced to do on time delivery when they are providing the services. Organization/ Client: Here there is a conflict between the organization and the client. Here the employees has to follow the rules which are developed by the owners . Ex: The cook cant delay the preparation of food within a time .
Cont… Client vs. Client : there are more customers conflict arises between them.. Ex: When a restaurant employees serving the customers continuously. Quality/ Productivity: Here there is a conflict between quality and productivity. The employees are asked to be both effective and efficient. Ex: A employees of the restaurant should behave courtesy with customers and see to it that the customers are well treated.
Human Resource Strategies for Closing GAP 3 Hire for Service Competencies and Service Inclination Hire the Right People Develop Customer- Employees as Employees Empower People to Customers Retain the Oriented Treat Best Deliver Service Service People Delivery Quality Provide Needed Support Systems Provide Supportive Technology and Equipment
Hiring The Right People Compete for the Best People:- for restaurant waiters plays a very important role so selection of waiters is very important. Hire for Service Competencies and Service Inclination:- training the waiters in a systematic manner like how to behave with customers and all. Be the Preferred Employer:- the employees should be preferred more and given more opportunity.
Develop people to Deliver SQ •Train for Technical and Interactive Skills:- training the employees for doing billing in absence of owner and also the smooth interaction skills and how to have patience. •Empower Employees:- here the some power ,authority, responsibility will be given to the employees •Promote Teamwork:- the team work should be developed in the restaurant to provide the services on time and retain the customers .
Provide needed support systems Measure Internal Service Quality:-here the owners are providing good support to their employees to deliver proper service. Provide Supportive Technology and Equipment:- according to there experience they will deliver the service . Develop Service-oriented Internal Processes:- they are mainly focusing on customer satisfaction.
Retain the Best People Include Employees in the Company’s Vision:- they are motivating employees by providing good salary and bonus. Treat Employees as Customers:-when they are treating employees as a customer then they will loyal to the there work and organization. Measure and Reward Strong Service Performers:- here they will provide bonus and occasionally they will provide cloths.
Descriptions of Staffing Issues in Firms High Passion for Service:- pakwaan is having sufficient employees for providing service to the customers. Moderate Passion for Service:- in pakwaan if the employees were absent they will adjust with the available employers Low Passion for Service :- if the employers are not working properly they were replaced by other employees.
Service Culture They are mainly focusing on the customer satisfaction by providing news papers, light music ,with well interior decoration.
Customer Role As the customer role is also playing a very important role in service delivery. In the Pakwaan hotel the first service starts from customer by through giving order.
Customer input in service game As by focusing vidyageri identified customer needs. According to that there should be requirement of hotel in this place so the pakwaan hotel is started.
Recognize That Quality Starts with Needs: The pakwaan is recognize that the quality is starts from the customer needs and the expectations of customers are differ from one to other so as per the needs they are providing services to the customer.
Recognize That Violating Needs Means Losing aCustomer: In the hotel as if the service failed it can be recovered in the form of discounting and asking sorry for that but if the owner is not accepted the customer complaint then they are going to loose the customers. In pakwaan they are not going to loose the customer because they are handling the customer very carefully as well as they are receving the complaints.
Respect Customers Need for SecurityWhen the Pakwaan hotel provide the services, it should ensure that the services which are provided will be safe.Ex: Quality Food.
Respect Customers Need for Justice The hotel must provide the services according to the expectation of customer and the way of handling the customers. so that customers feel satisfied by having satisfactory service from the hotel.
Clarify the Customers Co-production Role Pakwaan is identifying the wants of the customers and based on that they are providing realistic services.
Motivate Customers to Participate The pakwaan is trying to attract the customers by providing good quality of food as well as well as good services and also they are taking party orders from the customers.
Watch for Clues That Customers Could Do More The pakwaan hotel will provide the brochures, visiting cards, vehicle and pamphlets for the easy understanding of the services.
Draw in Customers as Co-designers of the Service DeliverySystem The pakwaan hotel will encourage the customers to give feedback about their services so that they can improve in delivering the better services.
How Customers Widen Gap 3 The customers are unable to understand their role. The customers will not be willing or able to perform their role. It might be a service complaint or any queries which they wanted to ask. Sometimes if they are willing to perform their role, their will be no rewards for their performance. Incompatible market segments
Customer roles in service delivery: Customers as Productive Resources: Organizational productivity can be increased if customers try to understand the situations of service delivery & perform the service-related activities. Customers as Contributors to Service Quality and Satisfaction: Effective customer participation can increase the likelihood that the needs are met and that the benefits the customer are actually attained.Ex: feedbacks & Word of mouth
Contd… Customers as Competitors: Some times some of the customers are acting competitors to the services which are providing by the pakwaan this happens when the customers thought they are getting both veg and non-veg food items but pakwaan is providing only the veg items.
Services Production Continuum Customer production : As in pakwaan they taught to keep self service as addition then the customers are paying amount in the counter and serving themselves. Joint production & Firm production : In pakwaan the service is providing by the waiters and the customers are going to pay the amount in the counter.
Strategies for Enhancing Customer Participation Define customer job : The pakwaan is identifying the needs of the customers in food items and providing services. It is educating the customer through by giving advertisements and making aware about the quality and service of their hotel. And they are managing the customers by providing the services according to their wish.
Waiting Strategies: Employing the operating logic to reduce wait Establish a reservation process by booking the tables in advance. Differentiate waiting customers as per the Veg & non veg. Make waiting fun ,or at least tolerable by providing the menu, music, DJ’s.
Waiting Line Strategies Employ operational logic Make waiting fun or at to reduce wait least tolerable Establish a reservation Differentiate waiting process customers
Waiting Line Configurations Single queue: Enter
Gaps Model of Service Quality CUSTOMER Expected Service Customer Gap Perceived Service External COMPANY Service Delivery Communications to GAP 4 Customers GAP 1 GAP 3 Customer-Driven Service Designs and Standards GAP 2 Company Perceptions of Consumer Expectations12/17/2012 106
GAP 4External communication Actual serviceQuick service Not providingMenu items Some items are not availableDelicious food Some times fail to deliver delicious food
Communications and theServices MarketingPakwann ) Company(Hotel Triangle Internal Marketing External Marketing Management rules like Communication Advertising Sales Promotion Public RelationsEmployees(waiters, Interactive Marketing CustomersCook, cleaners)
Service Communication Problems1) Inadequate Management of Service Promises: In advertisement they advertise availability of different types of items like Gajar ka Halwa….But when customer ask this type of item, management will say that it is not available.2)Inadequate Management of Customer Expectations:Customer expectation might be availability of quick service(5mins) & quality food, but management will take minimum 20mins to serve.3) Inadequate Internal Marketing CommunicationsEmployees unaware of the promises made by the pakwann hotel to the customers. Hotel may not communicate to their employees.
Four Categories of Strategies to Match Service Promises with DeliveryApproaches for Managing Service Promises Create Effective Services AdvertisingIn pakwann restaurant they are using vehicle, pamphlets. Coordinate External Communication:Word of mouth, Discount offers Make Realistic Promises:Making the promises such that it should be able to deliver effectively & efficientlyEx: Home delivery.
Approaches for Managing Customer ExpectationsOffer Choices:Pakwann hotel offer different choices of menus which fulfill thecustomers expectations.Communicate Criteria for Service Effectiveness:Quality food items at very reasonable prices.Quick service.Negotiate Unrealistic Expectations:Customer expectation might be availability of food within 5 mins(unrealistic)Sir, it takes time to fresh & delicious food so please wait for 15mins. (realistic)
Approaches for Improving Customer EducationTeach Customers to Avoid Peak Demand Periodsand Seek Slow Periods:Asking apology to the customers after delay service.Clarify Expectations after the Sale:Sir, it will take time to prepare fresh food So, it waslate.Prepare Customers for the Service Process:Greeting the customer, offering the seat then takingthe order & providing the food & then the bill isprepared after completing the service.
Approaches for Managing Internal Marketing CommunicationsTraining them effectivelyUpdating their knowledgeClearly setting their objectives on the bases of what we’vepromised in the external market and make them to understandthe objectives clearly.
Pricing: It is value for the product or service, which is paid by the customer to the provider. For marketers of industrial goods and construction companies, pricing is the single judgment that translates potential business into reality. Yet pricing is the least rational of all decisions made in this specialized field.
Price determinants of pakwaan Expected service Food quality Decoration Menu Price of service Weightier behaviour Image Cleanliness
Three key ways service prices are different for consumers: Customer knowledge of service prices: Here prices of providers are unwilling to estimate prices. Providers are unable or unwilling to estimate prices often cannot tell what the services will involve until the delivery is well underway. It is depends upon the satisfaction of customers. And needs are vary from customer to customer. The role of Non monetary Costs: Customer interacts with the service provider. The effort invested to identify and select among services you desire are also higher for services than for physical goods. Here convenience cost is very less because this place is convenient. And customers are satisfied with the service.
Contd… Price as an indicator of service quality: According to price fixed by provider they will deliver the services. And prices are reasonable.
Four Customer Definitions of Value Value is low price. Value is everything I want in a service. Value is the Value is all that quality I get for I get for all the price I pay. that I give.
Pricing Strategies:(Four Customer Definitions of Value) Value is low price: In festivals they are providing discounts in billing to the customers. Value is the quality I get for the price I pay. They stetted prices according to their services and they are helping them to increase customer satisfaction. Value is every thing I want in a service. Here they concentrating on customer loyalty. Value is all that I get for all that I give. They will not provide result based price.
Satisfaction-Based, Relationship, and Efficiency PricingStrategiesPricing Provides Value By Implemented AsStrategySatisfaction- Recognizing and reducing customers‘ Service guaranteesbased pricing perceptions of uncertainty, which the Benefit-driven intangible nature of service magnifies. pricing Flat-rate.Relationship Encouraging long-term relationships Long-term Pricepricing contracts with the company that bundling customers view as beneficial.Efficiency Sharing with customers the cost Cost-leader pricingpricing saving that the company has achieved by understanding, managing, and reducing the costs of providing the service. 123
Elements of Physical Evidence:Services scape Other tangiblesInterior decoration Employee dress(red colour)Menu system Business cardsSurrounding environment PamphletsDelivery of service Holdings Billing machine
Framework for Understanding Environment-User Relationships in pakwaan: Weighter mood Individual attitude, and behaviour comfort Satisfaction with work Employee Eminent condition response Individual careInterior decoration Perceived Music system service scape Sitting Customer Individual arrangements behaviour response Satisfaction with service Customer mood attitude and comfort
Service scapes: Inter personal service: In pakwaan involvement of both employer and customer.