MS Management Consultancy Disseration 2008 University Of Wales, United Kingdom


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MS Management Consultancy Disseration 2008 University Of Wales, United Kingdom

  1. 1. School of Technology and Management (STM) University of Wales Institute Cardiff (UWIC) Mr. Mohammed Fazlur Rahman MSC Management ConsultancyA Consultant’s Approach On Local Store Marketing Efforts In Pizza Hut (UK) Restaurants.
  2. 2. AbstractThis study is about a Consultant‟s approach on Local Store Marketing efforts in Pizza hut (UK)restaurants. The author acting as a consultant applied action research strategies in studying,analyzing and reflecting observations for implementing strategies like change management(Cunningham 1995), employee engagement (Schien 1995) for the purpose of the study. Thestudy also reflects author‟s observations about stakeholder engagement, Culture, Leadershipin developing a framework for LSM activities.A term „LSM‟ has been widely used through out the study, refers to Local Store Marketing.The study starts with an introduction about the consulting industry and local store marketing,followed by research objectives and rationale. The author explains the key research objectives,the rationale for choosing the research topic as well as limitations of the study.Literature review covers a range of relevant topics. Management consultant, the strategiesadopted by Consulting firm McKinsey in problem solving followed by brief review of literatureon Local Store Marketing, introduction, LSM project management steps, strengths, weaknessand applications of LSM with reference to relevance.Culture, national and organizational culture, influence on cultural members as well as sub cul-tures. Leadership and its significance on team members, the role of a leader in project man-agement.Stakeholder engagement, salience, identification and mapping. The role of stakeholders inproject management as well as the role of a leader in engaging stakeholders for successfulproject implementation.Customer Relationship Management (CRM) highlights the importance of customer loyalty forbusiness growth, the advantages as well as disadvantages of CRM are discussed with refer-ence to relevance.Methodology covers the topics related research methods like research philosophy, researchapproach and research strategy, explanation of sub topics, critical analysis and relevance tothe study is highlighted with the aid of research process „onion‟. Research design explains therelevant methods used for the study. Sampling explains the methods used, problems faced,sample size, etc.
  3. 3. Data collection explains about the modes of secondary data as well as primary data. The de-sign and administration of questionnaires, data extraction and analysis methods, research is-sues regarding validity, reliability and research ethics were discussed in detail with reference torelevance. Limitations about the research highlight the areas for further research followed by aGantt chart that highlights the timetable applied for the study.Findings present the analysis of 50 consumer survey questionnaires as well as 50 staff surveyquestionnaires, with the application of pie diagrams, tables and calculation of mean, median,mode and standard deviation. Explanations about all 20 questions as well as sub questions,were presented individually explaining their relevance to the study as well as literature review.Conclusions are drawn based on the research, secondary as well as primary data analysis andthe literature review. Recommendations present the local store marketing framework, devel-oped based on the study.In the end there is a list of reference in alphabetical order followed by two appendices of thetwo questionnaire formats used for survey.
  4. 4. Table of Contents.Chapter 1: Introduction. 1Research Objectives. 1Rationale. 2Limitations of the study. 2Chapter 2: Literature Review. 3Management Consultant. 3Consulting Firm: McKinsey. 4Local Store Marketing (LSM). 7LSM Project Management 8LSM Strengths, Weakness. 9LSM Applications 10Culture. 11National Culture. 12Organisational culture. 12Leadership 13Stakeholder Engagement. 14Stakeholder Identification, Salience, Levels and Mapping 14RACI Matrix 15Customer Relationship Management (CRM). 16Advantages & Disadvantages. 16Case study: Pizza Hut. 17Chapter 3: Methodology. 19Research process, Research philosophy. 19Research Approach, Research Strategy. 20Action Research, Research Design. 21Sampling 23Data Collection, Secondary & Primary data. 24Validity, Reliability. 25Research Ethics. 26Limitations of Research 27Gantt chart 27Chapter 4: Findings. 28Consumer Survey Questionnaire Analysis. 28Staff Survey Questionnaire Analysis. 34Observational Analysis. 39Chapter 5: Conclusions. 42Chapter 6: Recommendations. 44References. 46Appendix A: Consumer survey questionnaire.Appendix B: Staff survey questionnaire.
  5. 5. List of Tables and Figures.Fig. 2.1 Cultural Integration 12Fig. 2.2 Cultural Disintegration 13Fig. 2.3 Cultural Fragmentation 13Table. 2.4Defining Characteristics of three perspectiveson Organisational Culture. 13Fig 3.1 The Research process „Onion‟ 19Fig.3.2 Action Research Spiral 21Fig.3.3 The Research Process 22Table 3.4 Survey Route 23Table 3.5 Gantt Chart. 27Table 4.1 Frequency of Responses,Section 1 of the Consumer Survey Questionnaire 28Fig. 4.6 Vouchers 29Fig. 4.16 Gender. 29Fig 4.17 Age. 29Fig 4.18 Education. 30Fig 4.19 Work pattern. 30Fig 4.20 Family status. 30Table 4.21Mean, Median, Mode, and Standard Deviationof Consumer Survey Questionnaire 31Table 4.2.1 (a) Frequency of Responses,Section 1 of the Staff Survey Questionnaire 33Table 4.2.1 (b) Frequency of Responses,Section 1 of the Staff Survey Questionnaire 34Fig 4.2.6 Vouchers 34Fig 4.2.16 Gender 35Fig 4.2.17 Age 35Fig 4.2.18 Education 35Fig 4.2.19 Work pattern. 35Fig 4.2.20 Family status 36Table 4.31 (a)Mean, Median, Mode, and Standard Deviationof Staff Survey Questionnaire 36Table 4.31 (b)Mean, Median, Mode, and Standard Deviationof Staff Survey Questionnaire 37Fig. 4.4 Stakeholder mapping (Power/Interest) 39Fig. 4.5 Stakeholder mapping (Influence/Relationship) 40Fig. 6.1 Work Breakdown Structure (WBS) of LSM framework. 50
  6. 6. Pg: 1/50.Chapter 1: Introduction.Consulting industry is growing at a very faster pace, during late 80‟s, Fortune (1989) estimatedconsulting growth to be around $10 billion annually and growing 20% annually, while othersources estimated consulting industry well beyond $15 billion per annum (Business month1990), by end of 2007 global consulting is worth more than $100 billion (Reed 2008), thisshows a steady growth of $5 billion (50%) annually for the last 18 years. According to Abbot(2007), consulting industry market share is dominated by 5 major players, Accenture (14.2%),IBM (10.9%), KPMG (4.1%), PA Consulting (3.9%) and Ernst & Young (3.3%). According to Reed (2008), UK Consulting firms account for one tenth of the total globalconsulting business and share 27% of the total European market of 47.5 billion euros. The fourmajor markets for consultancy are, finance (£1.7 billion) followed by central govt (£950 million),communication industry (£598 million) and NHS (£336 million) Abbot (2007). The post Enron scenario and the bubble burst of the dotcom era, encouraged consultingfirms to diversify and separate audit from IT sectors in order to attract investments as well ashonour SEC scrutiny in the United States. According to David Owen, head of consulting atDeloitte, The current turmoil in the global financial markets will only encourage top businessfirms to avail the services of management consultants for their competitive advantage and pro-vide further opportunities for consultants (Reed 2008).The age of credit crunch, economic recession and increasing competition, brings enormouspressure on marketing consultants to provide marketing solutions based on the concept of“value for money”. In short, lesser in price but high in quality, is the demand of the time. In viewof this economic scenario, marketing strategies, which yield good results against low invest-ments, are higher in demand. Albert Einstein‟s reply to the motive behind theory of relativity“Figuring out how to think about the problem” is another directive to adopt LSM. When theproblem is declining sales, we think about increasing sales, however with limited financial re-sources, the way Einstein quoted, LSM appears to be a good alternative. (Allen 2004).Research Objectives.1) Study different methods of Local store marketing to increase sales, involvement in commu-nity welfare and a localised approach for increasing business.2) To examine a consultant‟s approach in terms of reviewing existing LSM activities as well asdeveloping new activities with respect to current trends in consumer expectations.3) To identify the importance of culture, influence of cultural members in an organisation alongwith various aspects of stakeholder engagement, the importance of accommodating stake-holder agendas in change management related to LSM activities.4) To develop LSM framework for wider application through out Pizza hut network in UK.
  7. 7. Pg: 2/50.Rationale.1) Personal:Acting as a Consultant, to plan, implement and control LSM activities enable to learn as well asenrich experience for future career. Multinational, Global, National as well as local firms areconcentrating on financially viable marketing tools to sustain increased competition. LSM is anexcellent opportunity to market within financial constraints. This enables the author with richexperience to start a career as a consultant with Global firms like McKinsey, PwC or Google.2) Academic:A real time project, not just for the sake of dissertation. The author tends to work on a project,which has more than academic value in terms of results. As the author is an employee withPizza hut and the branch manager has requested for LSM activity, this project provides an ex-cellent opportunity to plan, implement and control the project.3) Company:Improving the bottom line with respect to sales figures in a particular Pizza hut restaurant. Aframework on LSM will be developed, providing an opportunity to implement through out differ-ent Pizza hut restaurants in UK.Limitations of the study.Management consultancy is a wider field with multiple dimensions, however due to time andresources constraints, many dimensions could not be explored. The time period of twelveweeks itself is too short to study in depth and present a wide range of study, hence only issuepertaining to local store marketing (LSM) frame work development were studied.LSM frame work itself was concentrated on Pizza hut instead of considering the whole of res-taurant industry in UK, further only four branches of Pizza hut in London were approached, in-stead of covering more or all of London or UK. Selected employees of Pizza hut based on per-sonal contacts and networking, were approached for information, though care was taken toavoid researcher bias, however still there is a lot of scope to research further.The analysis and conclusions drawn are based on the information retrieved from differentsources (secondary and primary), however the emerging trends in technology as well as econ-omy, it is difficult to ascertain the results of this study will remain for a longer time, a factor be-yond control of the author.
  8. 8. Pg: 3/50.Chapter 2: Literature Review.According to Saunders (et al 2003), literature review avails the opportunity to explore the pub-lished research material about relevant area of interest, critical analysis in terms of debate andarguments about the merits as well as de-merits of the published records and establish rela-tions between this secondary information with primary data collection. With reference to rele-vance about the subject, this research provides an insight about the work of a managementconsultant regarding developing a framework on LSM. This research enables the researcher toexplore all-important variables, including those having repeated impact as well as influenceover the LSM research problem. There is a need to know what work has already been done(regarding the three main areas of literature review as stated in the following paragraph), criti-cal analysis of the previous findings as well as scope to do further research. Finally relate theprimary data collected with the previous secondary research. The areas covered in this sectioninclude Management Consultant, Consulting firm and Local Store Marketing.Management Consultant:The statement of Political Theorist Sir Francis Bacon in 1597 that there has been an “Insepa-rable conjunction of counsel with kings” (McKenna 2008:11) reflects a thought that consultantshave emerged from these counsels; hence consulting profession has a long historic back-ground. The need for consultants is similar to that of a King‟s Counsel, i.e. when internalanalysis of the problem is in effective in providing solutions, external guidance or consultationfrom experts having experience and knowledge in resolving similar challenges.Similar views have been reflected by another consultant‟s quote “Sometimes people get tooclose to the coal face to see the wood for the trees” (Maylor 2005:352), the conditioning orconditional brain formatting of people working in an organisation makes it difficult for them tomove from their entrenched positions, in such a case, a consultant being an external thirdparty „breaks the ice‟ and presents a solution more acceptable to the company work force thanworking out a solution from within. There are many reasons as to why organisational team(work force and management) are unable to work out a solution within themselves, like focuson their particular area of operation, lack of time, skills and capabilities, work style, etc.According to McKenna (2008) the emergence of “Knowledge Economy” i.e. the differential ex-ponent of knowledge is considered an asset in the corporate world, has further highlighted theneed as well as importance of consulting field.
  9. 9. Pg: 4/50.In 1962, Marvin Bower, the Managing Director of McKinsey & Co. explained the prospects of aconsulting career in the Harvard Business School‟s career guide “Management Consultingfirms – which are rapidly emerging as members of one of the newer profession – help topmanagement executives of business, govt. units, institutions and other organisations solvetheir major management problems” (Bower & Daniel 1962 cited in McKenna 2008:5). Bowerexplains two perceptions at a time, first consulting field‟s emergence as a new career and theother the role of a consultant as an external advisor to the board of management of differentorganisations and firms.There are concerns about employing consultants, some managers view them as additionalburden of work, costly and difficult to analyse benefits of the services provided by consultants.Many managers have quoted about consultants „if you give them your watch, they will tell youthe time‟ (Maylor 2005:353). It is not so simple as stated, it is quiet possible for the manager tolook at the watch (problem) to see the time (solution), since that is not the case, and consult-ants are needed to solve organisational problems. Another explanation is about a lecture, alecture is based on book(s), it is quite possible for a student to read that book(s) and under-stand, however that is not the case, since lectures are necessary to help the student under-stand the book(s) in a better way, similarly consultants are needed to investigate the coreproblem and to explore solutions.Consulting Firm: McKinsey.One of the leading global consulting firms McKinsey & Co. was founded by James O McKinseyin 1923 has more than 100 offices and employs more than 5000 professionals. McKinsey util-ises a dual system of consultancy based on developing a solution for client problems as wellas developing an approach for solution implementation. Consultants first meeting in McKinsey,regarding a client‟s problem will focus on a three point formulae for developing a solution, factbased, rigidly structured and hypothesis driven. (Rasiel 1999)To diagnose the problem rather than symptom as well as understand the situation, facts arenecessary. Similar to a study or dissertation, where an author has to quote a lot of referencesto prove the points of discussion, any solution needs to be backed by facts. Facts are generallythe internal documents of the clients like balance sheets, sales statistics, business perform-ance reports, internal memos, etc. (Rasiel 1999)Similar to a battlefield, where the best-trained armies making least mistakes emerge success-ful, a well-programmed structure empowers a consultant to tackle the problem thoroughly.
  10. 10. Pg: 5/50.According to Rasiel (1999), consultants at McKinsey are programmed on “MECE” (can also becalled as “me-see”). MECE stands for “Mutually Exclusive, Collectively Exhaustive” (Rasiel 1999:6)In simple words MECE can be explained as identifying problems separately and distinctively (mu-tually excusive) and then each problem to be researched thoroughly (Collectively Exhaustive).According to Rasiel (1999) Initial hypothesis (IH) is the final bit before actual commencementof problem solving process. This process can be classified into three main categories, Definingprocess, Generation and Testing. Initiate the cognitive process towards building options avail-able and either prove or disprove the initial hypothesis. Rasiel (1999) states that initial hy-pothesis testing is an important step of the whole process.The McKinsey way of developing an approach can be explained in twelve points, the problemis not always the problem, Don‟t re-invent the wheel, Every client is unique, Don‟t make thefacts fit your solution, sometimes you have to let the solution come to you, work through thepolitics, Pareto principle, the elevator test, pluck the low hanging fruit, the big picture and halfknowledge is worse than ignorance.Highlighted problem could be a symptom not the real problem, similar to the tip of an iceberg.Through research or digging deeper about the core issue provides better opportunities for ex-ploring the right solution. In Pizza Hut decreasing sales were only symptoms, the actual prob-lem were negligible increase in new customers and an average customer service quality.While highlighting the importance of learning from ones‟ as well as others‟ past experiences, amanagement consultant, George Armstrong quotes “Those who forget past have no future”.(McKenna 2008:242) If you understand past in terms of the reason for success or failure, it canignite the cognitive thought process. Thus leading towards an upward business developmentcurve as well as sustain a probable future negative influence on firm‟s business prospects.Understanding the past is necessary to probe the real problem otherwise high probability isone may diagnose the symptom not the problem.Solutions could be simple and in most cases present in employee cognitive setup. The besttool kit is encouraged, motivate and appreciate employees to open up their mental process to-wards providing a solution. Experience of similar projects can help, however “cut n paste”models could lead to disasters. To avoid these pit falls, solutions should be tailored to custom-er‟s requirements based on factors like suitability, adaptability and acceptance.Initial hypothesis is a guide map, not a road map. Rigidity in terms of IH can become a recipefor disaster, hence being flexible and adaptable to ground realities, provide more convenience.
  11. 11. Pg: 6/50.When a client reports a general problem and does not state specific details, gathering factsand performing analysis could lead to a solution. Solutions usually implement change man-agement. Changes affect part or all the sections of an organisation. Personal agendas cancreate hurdles on the road map of the solution process.Trying to correct these people or over power them can only become a part of the problem not asolution, hence building consensus through cordial conversations, impartial negotiations, ac-commodating their interests and offer of incentives can leverage the situation.According to Rasiel (1999:30) 80:20 rule (Pareto principle) is an exceptionally well result ori-ented principle used by consultants. According to this rule, 80 % of the sales come from 20 % of the customers. 80 % of the orders are generated by 20 % of the efforts.If efforts are made to track down these 80 % of sales or orders, the job becomes a lot easier,further concentration on these efforts can increase productivity as well as profitability.There are a lot of factors that affect the problem or business, instead of a thesis on each prob-lem, concentration on a few important ones or key drivers and ignoring others. Key drivershave maximum impact while other factors will have a lesser or even negligible impact.KISS your customer (Keep It Short and Simple) do not KILL them (Keep It Long n Lengthy).This principle is also known as “The Elevator test” (Rasiel 1999:34). In 30 seconds the solutionhas to be presented, this method is very effective in highlighting the bullet points, many organi-sations use similar methods, for example at P&G, one page memos are written by managers.(Rasiel 1999:15).In order to demoralise the enemy, gorilla warfare or proxy attacks are conducted to imbalancethe discipline and confidence. Similarly during a long-term assignment, to keep up the interestof a client, the progress, road map as well as the success achieved should be well communi-cated. In a restaurant, starters not only help reduce the hunger effect but also give time, formain food delivery.During the course of an analysis, sedimentation or metamorphosis can lead to irrelevant andtime wasting efforts. It is necessary to ask oneself about how the analysis done so far can ac-tually solve the relevant problem. It is also important to take notice of the research as a tool togain new knowledge and broader insights into the respective field of study.It is better to quote “I don‟t know” rather than try to fake things. This saves credibility, honesty,integrity and loss of confidence. The client will trust a consultant more because, when a con-sultant speaks, it is with full knowledge other wise states ignorance.
  12. 12. Pg: 7/50.Local Store Marketing (LSM).Local Store Marketing (LSM) also known as Neighbourhood Marketing (NM) is a tailored op-tion for firms to undertake result oriented marketing campaigns with a benefit of adding valuein the form of community involvement. LSM can influence customer perception of a store as alocal store with national presence (Allen 2004 & Wannenmacher 1991).According to Wannenmacher (1991) LSM is a part of marketing mix and comes under people,employees who act as service providers and customers are the recievers. Adding a personaltouch, building up relationship, providing best deals, service delivery on time are some of theLSM strategies to boost revenues, like other LSM strategies are cost efficient, within reach of alocal store and provide opportunities to monitor results. Personal relationship building adds in-cremental value towards encouraging loyalty and long term business, for eg. Asking a custom-er about their well being, providing kids with entertainment stuff, delivery of kids mealsearly, etc are some of the steps which provides the basis of a long term customer loyalty.LSM is an effective marketing tool in developing long-term business relationship with custom-ers and local community. LSM involves local community within a radius of 3-5 miles of everystore. Potential customers include specific groups of customers working or living in the localtrading area, existing customers as well as employees of each store. LSM enhances businessof existing products, extensions as well as new products. (Duke 2008 & Allen 2008).According to Allen (2004) traditional marketing campaigns are 3 times costlier than LSM. Mostrestaurants spend around 80% of their marketing budgets on new products and attracting newcustomers, this is 7-10 times higher than achieving the same results with loyal customers.Capturing TV slots and yellow pages advt. is a “monkey see - monkey do business”, hencedoes not guarantee results, moreover these are costly and cannot be measured effectively,where as LSM is cost efficient and easily measurable. In case of store chains like Pizza hut,KFC, Mc Donald‟s, Wal-Mart, Tesco, etc LSM plays an important role in competition as well assustaining long term business prospects. Individual stores have total „control‟ of their marketingactivities against monitoring of growth levels compared to national or global advertising cam-paigns, which cannot be monitored conveniently on a store-to-store basis. It helps in attractingcustomers from competitors; achieve break-even without higher investments as well highersales through increasing customer average. According to Heather Rose, vice president oflearning and people services at Mail Boxes Etc (MBE), USA, a LSM business plan is crucial forany new or existing store, it should include relevant goals, objectives, initiatives about targetedstrategies, tactics, implementation and a process of measuring or monitoring results. Rosestates that an efficient LSM plan results in increase in customer counts as well as higher cus-tomer average transactions leading to higher sales. (Lee 2002).
  13. 13. Pg: 8/50.Once US speaker of the house, Tip ONeill quoted that, bipartisan attitude arises when there istrouble, similarly when traditional marketing strategies are becoming in efficient, more restau-rants and retailers are trying LSM, similar to UK retailer Sainsbury‟s slogan “Try somethingnew today”. (Wannenmacher 1991).LSM also helps in brand building efforts, according to Cebrzynski (2007) LSM branding effortscan result in influencing customer perception towards an “emotional brand” value part of a“whole brand experience”.LSM Project Management:This consists of a 7-step process, 1) LSM strategy development through stakeholder participation, in particular through ques- tionnaires and interviews regarding suggestions to improve efficiency. 2) Explaining through a brain storming session about LSM strategy and motivate stake- holder involvement, specially enhancement of customer service quality. 3) Overcoming resistance to change by accommodating maximum stakeholder agendas. 4) Community involvement programmes to be engaged like, a) Word of mouth marketing efforts. b) Free lunch marketing campaigns for staff of local businesses. c) School kids arts, games competitions, honour roles and attendance. d) Local charity causes promoted through direct mail and local editorials. e) Participation in local library events. f) Involvement with local councils, by participating in community programmes like recycling and reducing carbon emissions. g) Local editorials highlighting various aspects, direction, community involvement schedules and offers, helps in maintaining customer attention. h) Customer raffles to promote customer loyalty. 5) Inviting local business (profitable & non-profitable), their employees and staff though special introductory offers and coupons. This also provides an opportunity for barter promotions, you promote us and we will do the same for you, without any money in- volvement. 6) Planning, control, co-ordination and monitoring results. 7) Troubleshooting, application of leverage and flexibility, in terms of ground realities. (LSM solutions 2008,Wannenmacher 1991 & Bernstein 1991).
  14. 14. Pg: 9/50.Strengths of LSM: 1) Local community involvement leads to recognition as well as enhancement of store‟s image 2) Employees are motivated to produce higher yield due to team effort. 3) Store‟s Brand strength increases. 4) Improves customer loyalty. 5) Compared to traditional marketing strategy, which creates an immediate temporary spike in sales graphs, LSM provides long-term growth. Hence sales traffic increases slowly but consistently. 6) SMART (Specific Measurable Achievable Relative and Time-bound) principle can be applied effectively to individual LSM strategy, compared to broad traditional marketing strategies. (Duke 2008).According to Allen (2004) if serving staffs are motivated they can increase the check averageeasily. Initiatives like welcoming the customer, keeping informed about the delivery schedule,adding up orders with starters, deserts or even extra toppings as well as a courteous send offwith a “thank you and see you again” can boost the sales to double up in-terms of extra visitsand bringing new customers. For example if a loyal customer visits Pizza hut once in a month,good servers can easily increase this frequency to twice in a month, which means a simpledouble sale.Weakness of LSM: 1) Involves a lot of time and effort on a consistent pattern. 2) Innovation in-terms of creative as well as cognitive process are required which is difficult to achieve with the routine work style of employees. This piles up the task list and re- quires more research, which gives way for external advice from consultants. 3) Involves stakeholder engagement that requires effective team management efforts. Stakeholders (like employees) may need to change their work patterns, this could initi- ate “resistance to change” and place hurdles in the process. 4) Mis-management could drive LSM to become a part of the problem, not the solution. 5) In effective in short term high sales „Spikes‟ generation requirements. 6) Staff and employees if ill-informed or de-motivated in-terms of quality of service and time management can lead to a “negative word of mouth” marketing, that can signal dooms-day for the business. (Allen 2008, Cebrzynski 2005 & Cebrzynski 2007).
  15. 15. Pg: 10/50.LSM Applications:Starbucks invest more on LSM strategies like staff training, internal merchandising and flaw-less execution compared to a limited investment on media advertising, hence as a result Star-bucks is one of the fastest growing take-out chains in the US. (Allen 2004)US retailer Firehouse subs use direct mailers to send free sandwich coupons to potential localresidents, research has proved that 70% of redemption resulted in customer loyalty. (Allen2004)Charlie Trotters a California based restaurant used LSM strategies like word of mouth to pro-mote a namesake chef as a culinary expert; this has made it famous globally without using tra-ditional marketing strategies. (Allen 2004). Word of Mouth marketing creates “an intent to re-turn”, which is a crucial factor for customer loyalty, other wise there is no return on investmentand hence poses a serious challenge to survival. (Cebrzynski 2007).As part of a LSM strategy, Barry (one of the owner‟s of Potekin‟s family run restaurant, Goldcoast dogs in California) utilised “word of mouth” and “free lunch” principles for promotingbusiness in local community. Barry will higher a cab to an arbitrary local address, during thejourney will bend driver‟s ear to the restaurant and finally tip the driver $5 for a meal at GoldCoast Dogs. Barry will repeat this exercise with a new cab while returning back. This resultedin increased cab business as well as word of mouth marketing by cab drivers to the local pas-sengers. In another LSM activity, Barry will send a tray filled with hamburgers, fries, shakesand soft drinks as part of a good will gesture to the staff of local retailers. Time managementwas the crucial factor, as this tray will reach them a couple of minutes earlier to lunch or snackbreaks. This caused a stir about “free lunch” at the reception, this staff will come back next dayto say thank you and buys lunch, thus the initial investment is recovered. (Bernstein 1991).Delta Airlines from USA, utilises existing customers to promote business. Bookings donethrough agents increase costs in-terms of agent commissions, to control the same, Delta en-courages customers to book online with three major incentives, 1) Sign up incentive: 500 air miles. 2) Check-in online: Double air miles. 3) Business class booking on-line: 1.5 times your air miles.Delta increased its customer data base, recorded customer details as well as customer aver-age check-in, passed on the savings of travel agent commissions to customers by offeringeconomical ticket prices, apart from this it introduced line extensions in-terms of car and hotelbookings. (Bryan 2008)
  16. 16. Pg: 11/50.According to Maria, RN and marketing in-charge at CIMA, a local OB/GYN hospital at NorthAtlanta, USA, with the aid of LSM strategy of community involvement, within a period of 2years, CIMA increased its baby-delivery average from 13 babies per month in a single clinic to150 babies per month in a string of 5 clinics. The mode of operation was involvement of localchurches and church leaders to conduct free maternity test and building a personal relation-ship with expecting and new mothers. Community involvement was utilised to gain “word ofmouth marketing” by new, expecting mothers as well as church leaders. (Bryan 2008)McDonald‟s used LSM efficiently between 1970‟s – 90‟s through strategies like sponsorship oflocal level league matches, running birthday party programmes and participation in local pa-rades. These steps were unmatched by other competitors or local stores at that time, accord-ing to Mr. Dick Adams, a consultant and a former franchisee of McDonald‟s. Roy Bergold for-mer Vice President and chief creative officer at McDonald‟s have expressed similar views. Ac-cording to Roy, LSM initiatives helped in building the “Trust bank” which was initially an impor-tant step for local-national as well as global expansion. However Marketing guru Philip Kotler iscritical about the use of LSM by McDonald‟s, according to Kotler McDonald‟s have neither cre-ated any new concept of marketing nor have altered the edifice of marketing, all they did wasto concentrate on community involvement or public relations initially to establish the business.After 1990‟s very less efforts were given to LSM and by 2000‟s McDonald‟s was more in newsfor concerns like „child obesity‟ and „junk food‟ than otherwise, the image building up was moreof a MNC interested in money than community issues. However the new leadership in June2003, chaired by Jim Cantalupo again utilised LSM strategies like focus on increasing cus-tomer visits rather than increasing number of stores, focus on projecting emotional valuesrather than price promotions, launch of „I m loving it’ campaign backed by „Freedom withina framework‟ a localising concept, helped in regaining 2 millions existing customer visits perday from a 5 year trend of loosing customers. (48 million to 50 million). (Arthur 2005).Culture:Culture is all about people, an important aspect of LSM. Employees, customers, management,suppliers are individuals with different cultural backgrounds. Culture can be termed as „collec-tive mental programming‟ (Hofstede 1983:76). Over a period of time the various aspects of tra-ditions, beliefs, values, legal systems shared by a group of local or national residents will pro-gramme them in a way that they react in a particular way while interacting with residents ofother geographical areas. Culture is a broad spectrum consisting of various aspects or sub cul-tures like nationality groups (US/UK/Indian/Polish), Racial groups (White/ Black/ Asian/ His-panics), Religious groups (Christian/ Muslim/ Jew/ Buddhist/ Hindus).
  17. 17. Pg: 12/50.The different media they are exposed to, choice of outlets, product contents, etc influencesthese sub cultural groups. Muslims avoid Pork products, any non-vegetarian food which is “nothalal” as well as alcohol. Hindus avoid beef products. A large section of Hindus and Buddhistskeep them selves on vegetarian diets. According to the author‟s observation, Africans orderchicken wings as favourite starters; British prefer combo platters while Asians prefer nachos asa starter before regular meals.National Culture.On a global basis, culture is mostly reflected by country of origin or national culture. Hofstede(1983:78) classified national culture into 4 dimensions. 1) Individualism versus Collectivism. 2) Large or small power distance. 3) Strong or weak uncertainty avoidance. 4) Masculinity versus Femininity.According to Hofstede (1994:2) Individualism versus Collectivism refers to whether an individ-ual acts independently without much influence of group or family, or a collective action wheredecision is mostly influenced by family or groups. Most restaurants in London, employ SouthAsian international students, these people have more tendencies of collectivism against theirBritish customers with a tendency of Individualism. Large or small power distance refers to thedegree of power enjoyed by different authorities within an organisation, society or nation.Strong or weak uncertainty avoidance refers to the risk taking capability of individuals. Futureis full of risks, individuals who have an eye on the past as well as current relativities and un-derstands the importance of „calculated risks‟ will be comparatively more successful than thosewho held themselves back due to „fear psychosis‟. (Thompson 2001). Masculinity versusFemininity refers to the role of genders, women‟s empowerment, Gay and lesbian rights, etc.Lack of understanding, knowledge or will to accommodate cultural aspects can lead to disas-ters and the outcome could become another part of the problem rather than a solution.Organisational culture.According to Martin & Mayerson‟s framework, cited in Frost et al (1991:8), organisational cul-ture can be classified into 3 perspectives, integration, differentiation and fragmentation.Integration relates to consistency regarding culturalManifestations as well as clarity in an organisation. ……It is a sort of consensus among different cultural Cultural membersmembers regarding the reasons as well ascourse of action. The reflection of such an actioncan be explained in Fig. 2.1 Fig. 2.1 Cultural Integration
  18. 18. Pg: 13/50.Differentiation relates to inconsistency Sub culturesregarding cultural manifestations.There is a limited consensus to the areas Commonof common interest of the subcultures. AreasThese subcultures act as islands ofclarity as shown in Fig. 2.2 Fig. 2.2 Cultural DisintegrationFragmentation refers to neither consistencynor inconsistency, rather fragmented culturalmanifestations. The subcultures actindependently without any commonalitybetween themselves as shown in Fig. 2.3 Sub cultures Fig. 2.3 Cultural FragmentationFeatures Perspectives Integration Differentiation FragmentationOrientation to Organisation wide Sub-cultural Lack of consensusConsensus consensus ConsensusRelation among Consistency Inconsistency Not clearly consistent ormanifestations inconsistentOrientation to Exclude it Channel it outside Acknowledge itambiguity subcultureTable. 2.4 “Defining Characteristics of 3 perspectives on Organisational Culture”. (Frost et al1991:9),Leadership.A leader should be able to present a framework for the effective operation of the decision-making unit. (Thompson 2001). Leadership is an art of extracting work from others. A strongleader makes or breaks the outcome. Good leadership qualities include providing growth, de-veloping team members through motivation, relationship building, problem solving, time man-agement skills and stress management. Leader needs to declare the vision as well as explainthe benefits of successful project completion to the team members. Team members shouldfeel a degree of ownership as well as independence to fulfil their responsibilities. (Clements &Gido 2006:294). Leadership is mentoring and guiding instead of enforcing their perception.
  19. 19. Pg: 14/50.When leaders ask for help instead of giving dictations, they will get more participation from theteam. A good listener encouraging participation of each and every team member, encouragingthe team to probe pro‟s and con‟s, speaking probably in the end are some of the real issuesunder leadership. (Verzuh 2003:256). Leaders should have a cognitive map about their strat-egy, implement the vision and most important, be able to convince others about success of thisroad map, in order to enhance the degree of team participation necessary for successful im-plementation. (Mintzberg et al 1998).As a consultant, from management to the employees, customers as well as the key stake-holder engagement, for successful completion of the project or vision, is a crucial area of rele-vance. The importance of LSM framework, relevance, vision, benefits to the stakeholders andthe ability to convince, encourage participation and team management are the key focus areasof significance.Stakeholder Engagement.Stakeholders have a direct or indirect, interest or influence, termed as „stake‟ in an organiza-tion (Gillespie 1999) “Those groups without whose support the organization would cease to ex-ist.” Stanford Research Institute (1963) cited in Friedman & Miles (2006:3). Stakeholders actas foundation pillars on which the organization exists. Cyert and March (1963) cited in Thomp-son (2001) explains stakeholders of an organization, in terms of coalition parties managing acoalition government based on a compromise or a common agenda. According to Thompson(2001) stakeholders perceive organizational actions differently. While shareholders and institu-tional investors may support organizational changes in terms of wealth creation, anotherstakeholder group consisting of employees, managers and their trade unions may opposesuch actions in terms of redundancy and downsizing. Stakeholders have different and sometimes conflicting agenda. (Gillespie 1999) Cus-tomer agenda is „value for money‟, high quality of product as well as service, at economicalprices. Employees need higher pay and benefits that will affect company profits and wealthmaximization agenda. Firms want to increase selling prices on their products/services to re-cover costs and increasing expenses, however Govt. wants to control rising prices in order tomonitor inflation and unemployment.Stakeholder IdentificationAccording to the explanation of Friedman & Miles (2006) stakeholder identification is significantin stakeholder engagement process. It is important to take note of people‟s real or perceivedinterest in a firm‟s activities as well as projects undertaken, depending on resultant outcome aswell as the process undertaken. (Verzuh 2003).
  20. 20. Pg: 15/50.Stakeholder Salience :Stakeholder salience is an important aspect of stakeholder analysis. Stakeholders are ana-lyzed in terms of Power, Legitimacy and Urgency. (Friedman & Miles 2006)Power: The stakeholder‟s power to influence the firm provides them a high priority.Legitimacy: The legitimacy of stakeholder‟s relationship with the firm provides them authority.Urgency: The urgency of stakeholders claim on the firm for execution.Stakeholder Levels: There are 3 levels of Stakeholders. (Friedman & Miles 2006:27)Level 1 represents the descriptive stakeholders, who are directly related with the firm.Level 2 represents the instrumental stakeholders, who are indirectly related with the firm.Level 3 represents normative stakeholders, who have some indirect influence over the firm.Stakeholder MappingAccording to Johnson (et al 2005) different stakeholders influence on a firm are dependent onthe relationships they have within the firm‟s stakeholders. These can be termed as strong (for),weak (neutral) and anti (against), in-terms of change management or project execution. Stake-holder mapping results in 4 categories of stakeholders, Key players, Keep satisfied, Keep in-formed and Minimal effort. (Mendlow 1991 cited in Johnson et al 2005:182)Key Players:The most important of all stakeholders are the board level executives, responsible for firm‟smanagement; these players have high power and high interest in the activities of the firm.Keep Satisfied:They have high power however low interest. High power because they can create challengesfor the firm, low interest because they cannot make decisions.Keep Informed:These players have high interest in the firm because they are dependent on the firm. Howeverthey have low power, as they are not a part of decision-making process or policy formulation.Minimal effort:These players have low power and low interest, hence require minimum effort. Public, Mediaand Non Governmental Organizations come under this category.RACI Matrix (Responsible, Accountable, Consulted, Informed)RACI matrix identifies various authorities and assigns tasks of project management in theWork Breakdown Structure (WBS), this also helps in stakeholder profiling within an organiza-tion. RACI matrix helps in time management and improves accountability during project man-agement and hence it is actively applied in projects. (Clements & Gido 2006)
  21. 21. Pg: 16/50.Customer Relationship Management (CRM).Customers are the lifelines of any business; they can make or break a business growth as wellas survival. CRM is a part of LSM activities, mainly concentrating on customers. According toBusiness Link, “CRM is more of a business philosophy than a technical solution to assist indealing with customers effectively and efficiently” (Trapp 2007). This quote relates to a long-term process of embedding a business philosophy, in short, prevention instead of a pill, toavoid health problems. An important area of focus in CRM as well as LSM with respect to customer manage-ment is customer loyalty, unless a business does not acquire repeat customers or loyal cus-tomers, it cannot acquire an established business status. Customer loyalty can be explainedas an intention to repurchase the product or service from the same company on the primaryside while secondarily, maintaining a high positive attitude in the form of recommending thesame to others. The two major factors determining loyalty are customer satisfaction and ser-vice quality. (Kandampully & Suhartanto 2000). An important factor that influences loyalty iscommitment, a strong will to continue a relationship and working towards a better relationship(Ball et al 2004). According to Julander (et al 1997) customer loyalty can be explained in twodifferent dimensions, behavioural and attitudinal loyalty. The consistent preference of brand in-terms of repeat purchases is termed as behavioural loyalty (Bowen & Shoemaker 1998). Acustomer‟s intention to repeat purchase as well as recommend the same to others is termedas attitudinal loyalty (Getty & Thompson 1994).Advantages: The system of digitizing customer transactions overlaid with other relevant in-formation regarding demographics, lifestyle, credit history and electoral register, present a “360degree” view of the customer (Evans 1999 & Mitussis et al 2006), in short it proivides a firm‟semployees with all relevant information required for effective customer engagement (Gordon2000 & Zikmund et al 2002). This information formulates a CRM system which can be inte-grated with other decision support systems like Enterprise Resource Planning (ERP), Execu-tive Information Systems (EIS), Supply Chain Management (SCM) as well as Product LifeCycle Management (PLCM).(Nguyen et al 2007). This networking of support systems leads toincreased revenues and profits as well as improved service quality and Customer Rapid Re-sponse (CRR) meausures (Anderson 2006) and helps in getting closer to customers by pro-viding better solutions to their problems and needs. (Nguyen et al 2007)Disadvantages: Too much customer focus lacks concentration on other relevant areas ofstakeholder engagement and leads to counter productivity (Mitussis et al 2006) Inspite of tech-nology, time and financial investments, CRM did not make a real difference in customer effi-ciency and turned managers hostile to CRM itself. Hence CRM risks a premature death, untill itre-engage with stakeholders also while focussing on customers.(Fournier et al.1998).
  22. 22. Case study: Pizza Hut. Pg: 17/50.Source: and Dan Carney founded pizza hut in 1958 in Wichita, Kansas, USA. Pizza Hut (UK)employs more than 20,000 people at 700 restaurants. It is owned by Yum brands and sells dif-ferent varieties of Pizzas like Pan (thick crust), Italian (thin crust) as well as Cheesy bites andoffers different toppings like Supreme, Pepperoni, Chicken, Vegetarian, etc. In 2004 a salt re-duction programme was launched resulting in reduction of 30% salt in some products, thecompany aims to meet FSA salt targets by 2010, products are free of hydrogenated vegetableoils since 2007. In October 2008, Pizza Hut (UK) launched 12 varieties of Tuscani Pastas andre-branded its name to „Pasta Hut‟ on a trial basis in some 30 outlets. (Pizza Hut 2008).The author is a team member of Pizza Hut restaurant in North Greenwich. (Unit 2, Cinema De-velopment, Bugsbys Way, Greenwich Peninsula, London, SE10 0QJ, Tel: 020 8858 6595.On 14th July 2008, the Restaurant General Manager (RGM) Mr. Mo. requested the author toact as a consultant for improving sales for the branch. According to Mo, for the first half endingJune 2008, the branch sales have dropped to 87% compared with the sales during same pe-riod in 2007. There are a lot of reasons like credit crunch, recession, job losses, competitionfrom O2 arena, etc which contribute for the losses. The downward trend in sales presents risksto the survival of RGM as well as the branch.The limited pool of financial resources alsopresents challenges for investments in advertising and marketing and hence the need for amarketing tool that is financially viable as well as effective presented an opportunity to exploreLocal Store Marketing (LSM).The branch organization consists of three levels, RGM, Shift Managers and Team members.There are three Shift managers, Mr. Tayyab, Mr. Noman and Mr. Umar. Team members aremanaged by a shift manager and shift manager reports to the RGM. Team members are clas-sified as Front Of House (FOH) team members and Back Of House (BOH) team members.FOH duties include customer service, taking orders and execution, while BOH duties includekitchen management, food preparation and delivery. The RGM reports to an Area Manager aswell as the Head Office. Pg: 18/50.The author being a team member faced different challenges during the project study. ShiftManager Mr. Umar presented his concerns regarding the author being given an authority ofshadow manager (consultant) in managing LSM activities, then another hurdle was to engageteam members in extracting valuable and relevant information for the study as well as team
  23. 23. members concerns regarding downsizing as a result of non performance being highlighted asa result of the study. These challenges were resolved by the author through stakeholder en-gagement as well as stakeholder mapping (influence and relationship).The head office management placed restrictions on administration of questionnaires as well asinterviews with managers, staff and customers. In order to resolve such challenges, the authorinvolved RGM to persuade Area Manager Rachel for implementing the study; subsequently asolution was worked out. The author administered staff questionnaires anonymously utilizingpersonal contacts as well as networking with staff. Customer survey questionnaires were con-ducted either outside the restaurant premises or while traveling in London buses.Local schools within the local neighborhood (5 miles) of Pizza Hut North Greenwich were con-tacted through telephone and appointments were taken with the Head teachers for kids draw-ing competitions as part of the local community programme. A database of 20 primary schoolswas structured by searching through telephone directory as well as internet search engineslike Google. With respect to convenience and mutually agreed schedule by the head teachers,during the month of September 2008, painting competitions were held in 5 different schools. A list of local retailers like Odeon cinema, Comet, B&Q, Sainsbury‟s located in theneighborhood (Bugsby way) as well as within 2 miles radius like Peninsular park shopping cen-ter, Greenwich shopping center and Stone lake retail park, resulted in a database of 35 poten-tial customers. These prospects were handed over a promotional offer letter (as mentioned inrecommendations) personally by the author along with RGM. This process was undertakenduring a 2-week period (6th Oct. to 20th Oct.2008) as per convenience of RGM as well as theauthor and subsequent appointments with the corresponding store managers. The customer loyalty programme (offer letter) was printed in the second week of Sep-tember 08, valid for the month of October 08. This letter was offered to loyal customers perso-nally by shift managers during the second half of September 08. Loyal customers were identi-fied either by FOH floor staff or shift manager‟s personal experience. As per the RGM Mr. Mo., during October 2008, kids parties have shown an upwardtrend from 2-3 per week during August and September 2008 to 10-12 per week during October2008, RGM gives credit to the efforts of the author as well as LSM activities like school kidscompetition and customer loyalty programme. However regarding the local retailers, since thisproject was undertaken during Oct.2008 and results can be analyzed only by end of Nov.08.Chapter 3: Methodology. Pg: 19/50.Research Process.This research is about a Consultant‟s approach on Local Store Marketing (LSM) efforts inPizza hut (UK) restaurants.
  24. 24. Fig 3.1 The Research process „Onion‟ (Saunders et al 2003:83)According to Saunders (et al (2003:83) the research process is represented as layers of an„Onion‟ fig… There are 5 layers of research process, philosophy, approach, strategy, time anddata collection methods.Research Philosophy.Research philosophy is the first layer; there are three views about research philosophy, Posi-tivism, Interpretivism and Realism.In positivism, research is conducted with an emphasis on a highly structured methodology. Theresearcher records data through observation, interprets and analyses the data with respect toobjectivity (Gill and Johnson 1997). There is an underlying assumption that the researcher actsindependently without influencing the results of the research (Remenyi et al 1998), in practisehowever, every researcher will have some influence from factors like personal, political andideological sympathies (Keel 2008). Epistemology is a study of knowledge as well as what canbe considered as „valid knowledge‟ (Collins & Hussey 2003). Positivists beliefs reflects scien-tific values, i.e. knowledge is actually accepted as knowledge only if it is based on physical oractual experience also termed as „authentic knowledge‟, however to say that there is noknowledge beyond physical aspects of observation and measurements, presents a seriousweakness to the philosophy of Positivism, for example anger and attitude, the two most rele-vant factors influencing staff towards customer service, these two factors cannot be measuredphysically, however their effect and influence are widely acknowledged.(Trochin 2006). Pg: 20/50.Interpretivism explains research philosophy in-terms of interpretation of individual situationsand the influence of such interpretations on future course of action in-terms of social interac-tions. According to Remenyi (et al 1998:35) “the details of the situation to understand the real-ity or perhaps a reality working behind them”, represents Interpretivism ideology, seeking tounderstand the subjective meaning, that encourages people‟s actions (Saunders et al2003:84). In Interpretivism, the interpreter should know about subject‟s actions and not justthere own, as there is a problem of actuality. The glimpse of action(s) or subject(s) from a dis-tance motivates belief in existence, followed by interpretation of a matter, which may not actu-ally exist. The use of language in interpretation, words with multiple meanings and losses intranslations, also presents challenges for Interpretivism (Byrne 1998).Realism is a philosophy related to the belief that beyond human thoughts and beliefs, a realityexists. The social forces and processes that influence human interpretations as well as behav-iours and humans may not necessarily be aware of such forces and their influences. (Saun-ders et al 2003:84). Realism points to the fourth dimension aspect, where we know there is afourth dimension to a block but cannot see the same, for instance a brick wall, however realism
  25. 25. also reflects religious belief systems, many beliefs are yet to be established by science. Real-ism seems to be more of a philosophy and belief, than actually practised.Research Approach.Research approach has been classified as deductive or inductive (Saunders et al 2003).Deductive (testing theory) approach starts with a theoretical structure followed as a conceptualdevelopment in the form of a hypothesis before proceeding to empirical testing. This approachexhibits positivism (Saunders et al 2003). This method follows a pattern, moving from generalto a particular subject (Collis & Hussey 2003). Deductive approach has yielded useful results indifferent fields, however there is general lack of reference to reality (Davis 1999), anotherdrawback is a rigid structured methodology, that cannot be altered or induced with other theo-ries based on practical applications (Saunders et al 2003).Inductive (building theory) approach is based on data collection and observation of empiricalreality to formulate a theory. This is a reverse process compared to deductive research thatmoves from specific observations to general patterns (Collis & Hussey 2003). Inductive re-search has substantially increased knowledge database, however it has been criticised for be-ing relatively unimaginable (Davis 2000). Inductive research is conducted on a longer period oftime, analysis takes time and there is a high probability of non-useful patterns of data and the-ory emerging (Saunders et al 2003). Pg: 21/50.Research Strategy.Research strategy is adopted to answer research questions, specify intended source of datacollection as well as limitation. As part of the strategy, during an experiment, a selection ofsample of samples of respondents out of a known population is selected. Survey is conductedwith the aid of a questionnaire administered to these selected samples (Saunders et al 2003).Action Research. Planning Reflecting Acting Observing/ EvaluatingFig.3.2 Action Research Spiral (Source:
  26. 26. Action research spiral explains the process of action research in terms of a continuous processof planning, acting, observing as well as evaluation and then reflecting the observation to planfor an envisioned future aligned with values at one‟s work place. The researcher regards ownviews as subjective and hence seeks to develop understanding of the events from multiple di-mensions through stakeholder engagement. This results in a reflective phase, enabling the re-searcher to formulate new plans for the next cycle (Riel 2007).Action research concept is based on the assumption that society or the social world is chang-ing constantly and that the research as well as the researcher are part of this change, the term„Action research‟ was first coined by Lewin (1964), cited in Collis & Hussey (2003:67).According to Saunders (et al 2003) there are three common themes of action research. Thefirst purpose of this research relates to change management (Cunningham 1995). The secondpurpose highlights the importance of a relationship between practitioners and researchers,Eden and Huxham (1996:75) argues that the best results of action research can be determinedwhen the members of a firm, concerned as well as influenced by the results of research areinvolved in the process of research, this explanation points to employee engagement (Schien1995) in solution finding process. The third theme is application-based theory, an action planas well as a long-term implementation map, according to Coghlan and Brannick (2001) actionresearch is not just a theoretical research plan of description and explanation but also includespractical change management. The critics of action research have pointed out that action re-search projects have been close to journalism or consultancy rather than the research processitself (Gummerson 1991:102 cited in Collis & Hussey 2003:67). Pg: 22/50.The action research spiral along with relevant features of experiment and survey were specifi-cally explored in designing questionnaire for primary research, as the author is an employee ofPizza hut North Greenwich where LSM activities are being under taken (Zuber-Skerritt 1996).During the research the areas stressed upon by Walliman (2001) were taken into account.  Data collection (facts and information) has a clear purpose.  Interpretation of recorded facts and information with respect to relevance.  The process justifies the objectives of the research.The research process is based on „logical relationship‟ and not just beliefs. It also includes de-scription and explanation about the problem; the author exhibits understanding of the problemsand a critical analysis of the existing published material. (Ghauri & Gronhang 2002).
  27. 27. Fig.3.3 The Research Process (Saunders et al 2007:10)Research Design:Robson (2002) states that the main purpose of the research design is to offer relevant answersto the research question. According to Jankowicz (2005) research design has been classifiedinto 3 types, In Exploratory research, Identification of key issues leads to the main problem. InDescriptive research there is an explanation of issues systematically. Causal research explainsthe reasons behind the outcome. (Ghauri and Gronhang 2002).Exploratory research was quiet helpful in the initial stages of this study, particularly when theauthor did not had enough understanding of the research areas (Malhotra 2004). According toRobson (2002) descriptive research can de explained as an extension of exploratory researchwhile Malhotra & Birks (2003) stresses that the objective of descriptive research is to give adescription. The author in the form of questionnaire used descriptive research. Pg: 23/50.Sampling:An important aspect of primary data collection is sampling. Since it is practically difficult withrespect to time and financial constraints to survey the entire population, a representative sam-ple of the whole population is used with the likelihood that the characteristics of the sample isfound in the whole population (Davis 1999).Saunders (et al 2007:206) highlights the importance of sampling due to following reasons, 1) Survey of entire population is not feasible on practical grounds. 2) Financial resources required are difficult to procure. 3) Time management will be a difficult task. 4) Data collection and analysis require large volume of resources.Sample bias is one of the main challenges of sampling. The respondents participating in thesurvey cannot represent the views of non-participants as well as not approached participants(Collis & Hussey 2003).
  28. 28. The author approached 200 samples of consumers in view of the expected practical responsesand received 50 consumer responses. The author approached 100 staff members of 4 differ-ent Pizza hut restaurants (North Greenwich, Surrey quays, Walworth Road & Oxford street),based on colleagues as well as networking and received 50 staff responses, hence in total 100responses were received, vital for the primary research.The consumer survey was conducted in London Transport Buses for the 50 consumer re-sponses. The author personally travelled in the buses covering different areas (routes) of Lon-don given in the Table 3.4 below.Bu Des stiNu na-mb tioer n Ro ute12 Du lwi ch Li- bra ry - Pe ck ha m- Ca mb er we ll - Wa lw ort h- Ele
  29. 29. ph ant - We st mi nst er - Ox for d Cir cu s35 Cl ap ha m Ju nct ion - Cl ap ha m Co m mo n- Bri xto n- Ca mb er we
  30. 30. ll - Wa lw ort h- Ele ph ant - Lo nd on Bri dg e– Sh ore dit ch40 Ea st Du lwi ch - Ca mb er we ll - Wa lw ort h- Ele ph ant
  31. 31. - Lo nd on Bri dg e– Ald gat e18 No8 rth Gr ee nw ich - Gr ee nw ich - Su rre y Qu ay s- Be rm on ds ey - Ele ph ant
  32. 32. - Wa ter- loo - Ald wy ch - Ho lbo rn - Ru ss ell Sq uar e(Table 3.4 Survey Route, rtd 10-11-2008) Pg: 24/50.The reasons for conducting the survey on buses are as follows,1) Proposed coverage of London areas.2) Cluster as well as random methods apply, cluster / passengers present in the bus, randomas passengers change (get in or get out) at every bus stop.3) Convenience in terms of respondent‟s accessibility. The bus routes chosen travel for aminimum of 45 minutes before reaching end of the route from the author‟s residence (Elephantand Castle) as well as place of work (North Greenwich). This provides a minimum of 5 re-sponses on each trip, contributing to 10 responses for around an hour and half (return journey).4) Prospective respondents do not mind spending around 5 minutes for answering the ques-tionnaire as they are bound to spend time travelling in the bus till they reach their destination.This method is also called as „Captive Respondents‟.5) Provides opportunities in terms of time and financial management. A week bus pass costless than £10 (£9.10) for students.The author‟s physical presence during questionnaire administration ensured accuracy, validityand reliability. It also helps in minimising errors and bias like non-responsive error, prejudice,un answered questions and clarification about specific questions. Buses provide convenience,security and cordial environment necessary for smoother conduct of the survey.
  33. 33. Data Collection.Secondary data.Data is collected from previous research published material from different authors about relevantareas of study, material from books, journals and articles to present a critical analysis in the litera-ture review chapter of this study. Secondary data and literature was extracted from varioussources. Books from authors like Kotler, Verzuh, Thompson, Johnson and Saunders, Journalsfrom Kellogg school of management, Cambridge university press, Harvard business review, OxfordUniversity press, CIMA, MIT, European journal of marketing, Management Consultancies Associa-tion (MCA), American management association, British Journal of management and InternationalBusiness review, articles from Fortune magazine and The Independent, Market research reportsfrom Emerald were used due to concerns about credibility, reliability and authentication.Primary data.In order to investigate the practical situation in order to retrieve primary or first hand informa-tion relevant to the study and relate the findings to secondary research, it was necessary forthe author to collect primary data. Primary data was collected through administration of 100questionnaires. Questionnaire administration from anonymous staff at pizza hut restaurantsand Pizza hut customers in identifying customer expectations, improving customer service,supply chain management with respect to quality and time of service is gathered. Pg: 25/50.According to Bell (2005 cited in Saunders et al 2007, 354-356) certain areas are to be consid-ered while preparing questionnairesAppropriately designed to produce necessary information.Clear and easily understood by respondents.Easy to analyse and interpret the data gathered. (Saunders et al 2007)The author has designed questionnaire according to lecture notes (McGee 2006).Questionnaire has been designed specifically to obtain quantitative primary data for the de-scriptive research as required for this study. This has been done for standardising the data col-lection process to ensure that the primary data obtained is internally consistent with respect torelevance and can be analysed in a uniform and coherent manner.The following areas were taken into consideration while designing questionnaires,Questions were developed that respondents could easily answer and yield the desired relevantinformation. Questions uplift, motivate and encourage the respondents to become more in-volved, co-operate as well as complete the questionnaire.Response error (in accurate answers and bias leading to mis-recorded or mis-analysed data)is minimised due to the physical presence of the author during all the 100 responses.
  34. 34. Structured, multiple-choice questions using a Likert scale were used to yield clear and maxi-mum accuracy. Wordings were designed to avoid or at least minimise non-response.Questions were designed to encourage respondents to take part in survey, questions pertain-ing to demographics (sex, age, education, work) that can discourage initially were asked in thelast section. Lay out, design, quality of print and paper were taken into consideration, in orderto avoid as well as eliminate potential problems. Questionnaire was shown to the dissertationsupervisor prior to administration (McGee 2006).The data obtained from questionnaires is analysed by univariative method (analysis of a singlevariable at one time) with aid of pie diagrams. (Jewell 2007, 10.21)Validity:To present the data on part with validity, the questionnaire was designed to ensure that “thefindings are really about what they appear to be about” (Saunders et al 2007,150)Reliability:Robson (2002 cited in Saunders et al 2007,149) states, there are 4 threats to reliability,1) Subject of participant error: As this area is difficult to control, the author has completed thequestionnaire survey during 2 weeks period (27-10-08 to 9-11-008) by travelling in different ar-eas of London, in order to reduce risk of external (environmental, political or legal) influences. Pg: 26/50.2) Subject of participant bias: The author was physically present at the time of questionnairecompletion by respondents to explain and ensure that respondents answer the questions asaccurate as possible in order to limit bias.3) Observer error: Questionnaire had been set with open and closed questions along with op-tions like “if others please specify” in order to reduce errors.4) Observer bias: It is challenging to control such bias, however the author tried to avoid it byacting neutral while interpreting and reporting results as well as data.Research Ethics:According to Lynch (cited in Curnow and Reuvid 2003), ethics are founded in culture and cul-tural members may have different views about ethics at work, however an ethical framework orcode of conduct encourages client confidence.In hiring the services of a consultant, clients have concerns regarding sensitivity of confidentialinformation sharing and subsequent losses to the client firm; this highlighted the need for acode of conduct for management consultants. According to IMC (2005), consultant ethics in-clude, serving clients with integrity, competence, independence and professionalism. Any sen-sitive or confidential information that is not available in public domain should not be disclosed
  35. 35. without the consent of the client. The code of conduct of consulting firm Ernst & Young (E&Y)also states that a consultant should consider ethical questions like whether the action is illegal,immoral, reflect negativity on part of the consultant, client or the firm, the consequences ofsuch actions being reported in the media. According to Beek (2008) PricewaterhouseCoopers(PwC) global ethics leader, there have been strong disciplinary actions against consultants forfailing to uphold the code of conduct, leading to dismissals. He also stated that at PwC there isa mechanism of holding ethical records of clients, in case a client fails to follow the code ofconduct, PwC and its subsidiaries will not engage in any contract with such client(s) in the fu-ture. PwC and Ernst & Young also operate ethical help lines for clients and well as employeesto report any ethical problems related to their assignments. (PwC 2008 & EY 2008). The following ethics were considered during designing and administration of question-naires. In view of the „Data protection‟ concerns, personal details like name, date of birth orcontact details have not been included hence questionnaires were designed for „anonymous‟response. The author‟s physical presence ensured accuracy and doubt clarifications during thesurvey. Questions that can distract, confuse or harm the respondents in any way have beenexcluded from the questionnaire. The author undertook questionnaire analysis in most accu-rate manner avoiding bias and prejudice. Questionnaire introduction explains the reasons andthe purpose of the survey and offer thanks for participation. Prospects were approached with ahumble manner and unwillingness of the respondents was dealt in a polite manner. Pg: 27/50.Limitations of Research.This research has a number of limitations like constraints in terms of time, resources and theword limit. It is difficult to present the data in detail because of the lack of time and resources topresent the data in detail. Software (like SPSS) could not be availed and utilized.Out of a population of around 67 million in UK, only 100 responses were considered for prima-ry research. (National Statistics 2007). This research can be termed as biased towards Londonbus passengers and four branches of Pizza hut in London.The study is about UK, however primary data collection is based only on London residents anddue to time and resource constraints other parts of UK were not considered for the survey.The author approached around 300 prospects to complete questionnaires about relevant re-search but was successful only in retrieving 100 responses, the ratio is 3:1, hence cannotrepresent the views of 200 prospects who refused to take part in the research.
  36. 36. There is a huge amount of secondary data and literature available in the books, journals andInternet, however very less information was utilized due to space, time and resource con-straints.Research Gantt chart:De We We We We We We We We We Wescr ek ek ek ek ek ek ek ek ek ek 1 2 3 4 5 6 7 8 9 10ip-tionReviewofLi-te-ra-tureResearchDesignResearchMethodolog
  37. 37. ySourcesOfDataCollectionOfDataDataAnalysisDraftComple-tionFi-nalReportEditing
  38. 38. DocumentBindingTable 3.5 Gantt Chart. Pg: 28/50.Chapter 4: Findings.Survey Questionnaire.A total of one hundred survey questionnaires split into two sets of fifty each were administered,one for the consumers of Pizza hut and second for the staff of Pizza hut. There are two sec-tions consisting of a total of twenty questions. Section A consists of fifteen questions aboutcustomer service while section B consist of five questions related to demographics. Please re-fer Appendices for the two questionnaires. Number Percentage 1) Branch of visit North Greenwich 27 54% Surrey Quays 11 22% Walworth Road 9 18% Other branches 3 6% 2) Frequency of visit Weekly 29 58% Fortnight 23 46% Monthly 8 16%6) Vouchers used Discount vouchers. 12 24% Shopping vouchers. 15 30% Complimentary vouchers. 14 28% Others. 9 18% 16) Gender Male 27 54% Female 23 46% 17) Age Under 20. 10 20% 20 – 25. 15 30% 25 – 30. 8 16% Over 30. 17 34% 18) Education
  39. 39. No degree. 13 26% Professional qualification. 12 24% Have Bachelors degree. 21 42% Have Masters Degree. 4 8% 19) Working Not working. 10 20% Working between 10 - 20 hours a week 18 36% Working more than 20 hours a week 22 44% 20) Family status. Living alone. 24 48% Single parent. 12 24% Living with a partner or parents. 14 28%Table 4.1 Frequency of Responses, Section 1 of the Consumer Survey QuestionnaireConsumer Survey Questionnaire produced 50 responses. Pg: 29/50.1) The analysis (Table 4.1) exhibits that 27 respondents or 54% visited North Greenwichbranch, followed by 11 respondents or 22% visited Surrey Quays. The survey was focusedaround these branches for reasons of convenience and travel for work.2) The data analysis also indicated that 29 respondents, 58% visit Pizza hut on a weekly basis.6) Vouchers Fig. 4.6 VouchersThe data also indicated that consumers use vouchers extensively, all the 50 respondentsused vouchers, 15 respondents or 30% used shopping vouchers, followed by 12 respondentsor 24% indicated use of discount vouchers and complimentary vouchers were used by 14 res-pondents or 28%. The extensive utilization of vouchers exhibits a high influence, the samehave been recommended by the author in Recommendations chapter. This is similar to utilisa-tion of „free lunch‟ LSM activities. (Bernstein 1991).16) Gender Fig.4.16 Gender.The author has tried to approach equal number of respondents with respect to gender in order toreflect proper viewpoint, however majority of the males 27 (54%) participated while female re-sponse was less than half 23 (46%). A large number of females refused to take part in the surveyand hence their views could not be considered for analysis. Understanding masculinity is part ofcultural studies of consumers in order to develop better customer services (Thompson 2001).17) Age. Fig 4.17 Age. Pg: 30/50.Among the 50 respondents who participated in the survey, 10 (20%) were less than 20 years ofage at the time of survey, 15 (30%) were between 20-25 years (less than 25 years of age), another
  40. 40. 8 (16%) were between 25-30 (less than 30 years) and majority of the respondents 17 (34%) wereolder than 30 years at the time survey was conducted. According to Kotler (1994) age is an impor-tant consideration for marketing research.18) Education. Fig 4.18 Education.Education level of respondents. One-fourth 13 (26%) were found with no degrees, while 32% hadprofessional qualification, 34% had a Bachelors degree and only a few (8%) had Masters degree atthe time survey was conducted.19) Work Fig 4.19 Work pattern.Work pattern analysis of respondents exhibits 10 (20%) were not working, 18 (36%) were workingonly part time (10-20 hours a week) and majority 22 (44%) were on a full time position (more than20 hours a week) at the time survey was conducted.20) Family status Fig 4.20 Family status.In response to 20) Family status of respondents, around half of them 24 (48%) were living alone, aquarter 12 (24%) were single parents and slightly more than a quarter 14 (28%) were living in fam-ily with either parents or a partner. Pg: 31/50.Question Mean Median Mode Standard Deviation3, a. 4.72 5 5 .843 b. 3.40 4 4 .784 c. 3.88 4 4 .639 d. 3.20 3 5 .885 e. 3.42 3 4 .775 f. 3.68 4 5 .679 g. 3.78 4 4 .655 h. 3.52 4 4 .7334. 2.70 3 3 .8917. 4.70 5 5 .8338, a. 3.08 3 4 .752 b. 1.52 1 1 .952 c. 2.10 2 1 .911 d. 2.08 2 1 .905 e. 2.78 2 1 .837 f. 2.02 2 1 .894 g. 3.08 3 4 .7419, a. 3.90 4 4 .637 b. 2.62 2 1 .824
  41. 41. c. 2.90 3 3 .861 d. 4.06 4 4 .634 e. 4.30 5 5 .673 f. 3.58 4 4 .71110. 3.22 3 4 .87411. 3.50 3 3 .74112, a. 3.16 3 3 .907 b. 3.70 4 4 .673 c. 3.46 3 3 .758 d. 3.52 4 4 .733 e. 3.86 4 4 .641 f. 3.98 4 4 .63213. 2.61 3 3 .86414. 2.91 2 1 .86715. 3.41 3 3 .778Table 4.21 Mean, Median, Mode, and Standard Deviation of Consumer Survey QuestionnaireConsumer survey questionnaire, Section A, question 3,4,7 and 8-15 asked respondents to ratetheir priority on a scale of 1–5, 1 exhibits very low influence, 3 indicates medium influence, 4relates to a high response and 5 reflects a very high response.3) Respondents were asked to rate about the factors that influence their visit to pizza hut res-taurants. The data indicated a very high response (mean 4.72) highest mean of the survey (ta-ble……) for brand, price was slightly higher (mean 3.40). Pg: 32/50.Respondents indicated food quantity almost a high priority (mean 3.88) while quality remainedat a medium priority (mean 3.20), followed by presentation also at a medium priority (mean3.42). Promotion offers (mean 3.68), price discounts (3.78) and Coupons (3.52) exhibits a highinfluence, the same have been recommended by the author in Recommendations chapter.This is similar to utilisation of „free lunch‟ LSM activities. (Bernstein 1991).4) Customer service at a mean of 2.70 indicates a less than average service, this is one of themain reasons for lack of customer loyalty, an issue highlighted through LSM (Kandampully &Suhartanto 2000).5) Respondents were asked for suggestions on improving customer services, instead of select-ing from the range, it is interesting to note that respondents selected all the suggestions likewarm welcome, less waiting periods, information about delivery process and food quality. Thereflection exhibits the need for customer loyalty (Ball et al 2004) through improved customerservice (Allen 2004).
  42. 42. 7) Regarding special offers as an encouragement of loyal customers to increase their fre-quency of visit, the mean of 4.70 exhibits a very high influence. Special offers have a direct in-fluence on business development (Bryan 2008).8) Television advertising influence has a medium response (mean 3.08), while radio is theleast (mean 1.52). Newspapers (2.10), Magazines (2.08), Internet (2.78) and Signboards(2.02) indicate less than medium or a low influence. The costs of these traditional sources ofmarketing are three times costlier than LSM (Allen 2004), however the influence of these me-dia on a consumer (respondent) is less than average.9) Responses regarding restaurant environment. Design (mean 2.62) and atmosphere (mean2.90) remain almost near the medium level. However location (3.90), cleanliness (4.06), wait-ing time (4.30) and staff attitude (3.58) indicate a high importance given by respondents tothese areas (Allen 2004).10 & 11) Charitable causes like World Hunger Relief, indicate a medium response (mean3.22), local community programmes like school painting competition also exhibit similar me-dium response (mean 3.5), an indication that customer concerns are reflected in brand percep-tion. (Duke 2008). Pg: 33/50.12) Factors influencing food choices. Culture has a medium response (mean 3.16) while relig-ion exhibits a high response (mean 3.70), indicating the level of religious and cultural influenceon food choices. (Hofstede 1994 & Thompson 2001) Early experiences (3.46), Eating habits(3.52), indicate more than medium response, family and friends (3.86) as well as economics(3.98) reflect a high response, these factors can be influenced by „word of mouth‟ marketingactivities of LSM. (Bernstein 1991).13) Regarding Pizza as a „junk food‟, 38% replied in negative, while 62% responded positively,however among the „yes‟ replies, the response is low (mean 2.61). Hence, overall consumersare less concerned about this matter.14) Responding to free range products introduction in Pizza hut, majority (68%) supported thecause, however when asked about their willingness to pay an extra price, response was al-most medium (mean 2.91). Customers welcome free-range products, however not at the ex-pense of a higher price.
  43. 43. 15) Re-branding of Pizza hut as Pasta hut and introduction of Pasta foods as a cause to ad-dress social and health concerns, more than two third (82%) replied affirmative, indicating ahigh level of influence on respondents. (Wannenmacher 1991). Number Percentage 1) Branch of work North Greenwich 27 54% Surrey Quays 5 10% Walworth Road 11 22% Other branches 7 14% 2) Frequency of customer visit Weekly 32 64% Fortnight 15 30% Monthly 3 6% 6) Vouchers used by customers Discount vouchers. 12 24% Shopping vouchers. 27 54% Complimentary vouchers. 7 14% Others. 4 8% 16) Gender Male 26 52% Female 24 48%Table 4.2.1 (a) Frequency of Responses, Section 1 of the Staff Survey Questionnaire Pg: 34/50. Number Percentage 17) Age Under 20. 4 8% 20 – 25. 31 62% 25 – 30. 12 24% Over 30. 3 6% 18) Education No degree. 2 4% Professional qualification. 17 34% Have Bachelors degree. 25 50% Have Masters Degree. 6 12% 19) Working Working for less than 10 hours a week 1 2% Working between 10 - 20 hours a week 43 86% Working more than 20 hours a week 6 12% 20) Family status. Living alone. 16 32% Single parent. 2 4% Living with a partner or parents. 32 64%Table 4.2.1 (b) Frequency of Responses, Section 1 of the Staff Survey Questionnaire