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A PROJECT REPORT
ON
“CRITERIA EMPLOYED TO UNDERSTAND THE PREFERENCE OF THE
EXISTING CUSTOMERS AND POTENTIAL CUSTOMERS OF MAST KALANDAR
IN PUNE”
AT
MAST KALANDAR – SPRING LEAF RETAIL PVT LTD
SUBMITTED TO
SAVITRIBAI PHULE UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF THE DEGREE
OF
MASTERS OF BUSINESS ADMISTRATION
SUBMITTED BY
MS. SAZRIN A. GIDANI
(Marketing)
THROUGH
SADHU VASWANI INSTITUTE OF MANAGEMENT STUDIES FOR GIRLS, PUNE
MBA II
2013-15
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 2
ACKNOWLEDGEMENT
The internship opportunity I got with Mast Kalandar was a great chance for learning and
professional development in the restaurant industry. I am grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship.
I would like to use this opportunity to express my deepest gratitude to the CEO of Mast
Kalandar, Mr. Gaurav Jain, who in spite of being busy still managed to take time out to
guide me. Also, I would like to thank Ms.Vrinda Pandey, (Head of Marketing and Customer
Service) for providing me full guidance with my project. I choose this moment to
acknowledge her contribution gratefully.
Special thanks to my internal guide, Ms. Smita Mehendale (Assistant Professor at SVIMS)
for her kind support and motivation.
I am very grateful to my family, marketing classmates and friends who provided me with
continuous love and support during my internship and further with this project.
I perceive this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the next level of my career. Thank you once again.
Yours Sincerely,
Sazrin A. Gidani
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 3
DECLARATION
I Sazrin A. Gidani, student of Sadhu Vaswani Institute of Management Studies hereby
declare that the project entitled “Criteria employed to understand the preferences of
existing customers and potential customers of Mast Kalandar in Pune” submitted in
partial fulfillment of the requirement for the Degree of Masters in Business Administration
is my original work and the project has not formed the basis for the award of any degree,
associate-ship, fellowship or any other similar titles.
Place: Pune Signature of the Student
Date: Ms. Sazrin A. Gidani
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 4
CERTIFICATE
This is to certify that the project work titled “Criteria employed to understand the
preferences of existing customers and potential customers of Mast Kalandar in Pune” is
a bonafide work of Ms. Sazrin A. Gidani (Seat no. ) carried out in partial fulfilment
for the award of Master of Business Administration (M.B.A) of Savitribai Phule Pune
University under my guidance.
This project work is original and not submitted earlier for the award of any degree/diploma or
associate ship of any other University/Institution to the best of my knowledge and belief.
Dr. B.H Nanwani Ms. Smita Mehendale
Director – SVIMS Internal Guide
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 5
TABLE OF CONTENT
Sr. No Section
Page
No.
1 Executive Summary.................................................................................. 6
2 Company History and Background.......................................................... 8
3 Outline of the Problem............................................................................. 11
4 Literature Review.................................................................................... 13
5 Objectives of the Study............................................................................. 23
6 Research Methodology............................................................................. 25
7 Limitation of the Study............................................................................. 27
8 Data Analysis and Interpretation.............................................................. 29
9 Findings.................................................................................................. 45
10 Recommendations................................................................................... 47
11 Learning’s.................................................................................................. 49
12 Contribution to the organization................................................................ 53
13 Bibliography.............................................................................................. 54
14 Annexure................................................................................................... 57
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 6
EXECUTIVE SUMMARY
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 7
My Project title is “Criteria employed to understand the preferences of existing
customers and potential customers of Mast Kalandar in Pune”
The project has been undertaken to understand what is the preferences of current customers
and the potential customers in context to the service marketing mix for Mast Kalandar in
Pune, Maharashtra. It was also undertaken to understand the areas for improvement to
facilitate expansion plan by Mast Kalandar in Pune. The city of Pune has good potential for
expansion in the food industry.
The research project started with an exploratory research done during the first few weeks of
the internship, where the criteria employed by customers in the choice of a restaurant were
explored.
Later primary research was conducted in three weeks that helped analyzed the areas of
improvement required for the organization in context to Mast Kalandar. It gave an
understanding what was required for the organization to improve to have a steady growth and
strong expansion.
The major areas for improvement included the quality and quantity of the product served, the
promotion required to draw attention of the targeted segmentation and the training required of
the people who directly deal with the customers in terms of service. These findings are
supported by the data collected through the questionnaire.
It is recommended that Mast Kalandar should continue its expansion strategy and improve on
the giving areas by doing promotions on interval basis. It should also do another survey to
understand the taste preference of its current customers for further improvement related to the
quality and quantity of the food.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 8
ORGANIZATION
BACKGROUND
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 9
Mast Kalandar is a North Indian fast casual chain of restaurants started by Spring Leaf Retail
Pvt Ltd., a company promoted by Gaurav Jain and Pallavi Gupta (Co-founders). It was to
provide a wholesome and healthy eating experience to the calorie conscious working
professionals, and to serve the old Indian recipes with a new age perspective. The food is
cooked fresh twice a day using quality ingredients to taste like home food. The menu at Mast
Kalandar is a mix of recipes inspired from different dishes cooked in the homes across
different states in Northern India. The spices used in these recipes are also sourced from the
region from where the food is, to maintain the authentic taste.
Mast Kalandar has always striven to maintain the quality of food and service as they have
expanded over the last six years. It currently has thirty four branches in Bangalore, seven
branches in Chennai, two in Hyderabad and six in Pune, and looking to expand up to one
hundred outlets in India within the next couple years.
The co-founders, Gaurav Jain and Pallavi Gupta started the venture with their personal
investment of eighteen lakhs in February 2006 in Bangalore, India. Within one year, the
company had a turnover of twenty five lakhs with sixty employees working. Gaurav Jain quit
his job at Wipro in 2005 and continued doing research for next eleven months to create a
strategy for his idea. The execution became successful when Gaurav started with his first
outlet in Bangalore, where they promised to serve fresh homemade food to its customers.
Now with duration of six years, Gaurav and Pallavi see a vision to expand their business in
different parts of India, where they would standout for their unique selling point. The
company currently has six hundred employees with a turnover of fifty crores in more than
thirty-four outlets in India.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 10
It offers a wide range of combos starting from 100 rupees up to 250 rupees, which includes
one of their signature dishes all the time. The combos are made to satisfy the health and
quantity requirements of an individual. The combos consist of the signature vegetable dish of
the day and other surrounding supporting items and a closure with a sweet dish. The
restaurant offers a wide range of different combos and al a’ carte to fulfil ones requirement of
food. Mast Kalandar claims to be little overpriced by 10% compared to its competitors, for
the similar quantity of food.
Mast Kalandar stands its unique selling point by providing food which is made on daily basis
and is homemade; unlike other restaurants Mast Kalandar cooks its meals twice a day. The
quantity of the combo is made especially for the working class professionals who wish to
have homemade food without putting on extra calories and burning extra cash for unhealthy
food. The outlet have good ambience and are very vibrant and filled with energy with warm
colours to make their customers feel energetic while dinning.
The locations chosen by the company in Pune, India are placed around the areas where
working class professionals can be reached. Mast Kalandar provides north Indian flavours
with a twist to various south Indian locations. It provides additional service such as home
delivery and a small program for its loyal customers.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 11
OUTLINE OF THE PROBLEM
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 12
This project report is based on the research conducted during my two months internship with
the marketing department of Mast Kalandar. The main purpose of my internship was to
understand the requirements of existing and potential customer of the organization. I went
through several days of observation with various managers to understand the flow of the
service. After three weeks it was understood that many areas of the organization required
attention and improvement. During this period I analysed all the factors which may be
important to the customers of Mast Kalandar. I learned to analyze every given angle of a
service industry which was important to an everyday customer; in case of Mast Kalandar, it
was the targeted group of working professionals and families.
Every time a consumer opts for service they display forms of buyer behaviour that are
influenced by many factors. In the restaurant industry it is a challenge to balance all the
marketing mix P’s as it is the only factor which is in the hands of a marketer. The marketing
mix given by Philip Kolter and extended mix by Booms and Bitner can be applied to any
product or service that is being provided.
The sales for every location in Pune were down and service feedback on the social media
page was increasing negative. Hence the need for research was identified to understand what
changes need to be brought into to ensure consistent growth of Mast Kalandar in Pune
market. The findings of the project include how the current customers of Mast Kalandar
respond to the services provided and what do the potential customers seek in similar
services.
In India the hospitality industry is growing at an unprecedented rate with a year on year
growth of 4.9% from the previous year (Source India Brand Equity Foundation) and with
such growth the demand and preferences of customers is likely to evolve. Therefore this
report will help the management see areas’ of improvement, which will help them to expand
the business.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 13
REVIEW OF LITERATURE
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 14
In 1981, using the above mentioned information, Bernard H. Booms and Mary J.
Bitner further developed the traditional marketing mix developed by the American Professor
of Marketing Jerome McCarthy into the extended marketing mix or services marketing mix.
This services marketing mix is also called the 7P model or the 7 Ps of Booms and Bitner.
This service marketing mix strategy extends the original marketing mix model from four to
seven elements. While Jerome McCarthy has only defined four verifiable marketing
elements, the 7Ps are an extension as a result of which this services marketing mix can also
be applied in service companies and knowledge intensive environments.
The 7P models, also known as the services marketing mix, go beyond the four basic
marketing principles for product marketing. Services have unique characteristics, for example
intangibility, heterogeneity, inseparability and perish-ability. Bernard H. Booms and Mary J.
Bitner’s insight in relation to physical products and services led to an extension of the
traditional marketing mix.
INTANGIBILITY
Products are tangible and Services are intangible in nature. Intangibility of services is derived
from the fact that you cannot see or tough a service. A service is made and delivered on spot
and hence it cannot be measured as easily as a tangible product.
For example: A service like a restaurant is always varying because you pay as per the service
that you receive. You cannot taste the food in a restaurant and then order the food. You have
to first order it and then hope that it is good in taste.
The intangibility of services is the dominant characteristics of services and the biggest
challenge for marketers as well as service product owners. There are 5 main characteristics of
intangibility of services.
1. Service cannot be touched
2. There is no precise standardisation method for services
3. Services cannot be patented
4. There are no inventories in services
5. The consumer is part of the service process because he consumes the service.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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INSEPARABILITY
Inseparability is used in marketing to describe a key quality of services as distinct from
goods. Inseparability is the characteristic that a service has which renders it impossible to
divorce the supply or production of the service from its consumption or it explains that it is
impossible to distinguish between the service and the server.
Service marketing is comprised of people, processes, and physical evidence, all of which are
unique to the marketing of services. People are a defining factor in a service delivery process,
since a service is inseparable from the person providing it. Thus, a restaurant is known as
much for its food as for the service provided by its staff.
According to Donald Cowel “Goods are produced, sold and then consumed whereas the
services are sold and then produced and consumed”.
INCONSISTENCY OR VARIABILITY
Inconsistency is characteristic of a service that makes them less standardized & uniform than
goods inconsistency is called as variability. It is defined as the inability to establish certain
concrete standards and uniformity. The quality of services can’t be standardized. There may
be there basic reasons for this heterogeneity of services.
The consistency occurs largely on account of –
• Different services provides perform a given services at different occasions.
• The services performed by an individual provider may differ overtime.
• Interaction b/n customer and provider may vary by customer, companies which are
highly equipment & system based & less people based on reduce insistency in
services.
• The service might be modified by the service provider himself.
• Behavior of the human factor used to provide the service may vary.
Due to all these reasons the service provider is unable to provide the same level of service
each time the customer avails the service, thereby leading to the varied customer experience.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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Various forms of inconsistency may include different prices charged by different service
providers. E.g. Different parking fee being charged by different contractors.
Example: Mc Donald’s have been able to achieve consistency in services delivery by
adopting production line approach to services and standardizing every aspect of services
operation down to the width of the smile that each customer should be greeted with.
INVENTORY OR PERISHABILITY
The inventory relates to perishability characteristics in services marketing. The services
cannot be easily saved stored for the future use. The combination of perishability &
Fluctuating demand present challenges for marketers engaged in product planning, pricing,
promotion, distribution of services. This is the second most striking feature of the services.
The goods not sold today can be stored, preserved for further selling in some future date. But
in the context of services no stock or inventory can be maintained of it we fail to sell the
services, it is lost only not for today but even on the future.
Example: In the restaurant, the food provided one day or one time period cannot be served
again the next day or the next time slot because the food becomes uneatable hence it is
known to be perished.
ELEMENTS OF MARKETING MIX
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THE PRODUCT MIX
In services, the "product" is intangible, heterogeneous and perishable. Moreover, its
production and consumption are inseparable. Hence, there is scope for customizing the
offering as per customer requirements, and the actual customer encounter therefore assumes
particular significance. However, too much customization would compromise the standard
delivery of the service and adversely affect its quality. The most basic marketing mix tool is
the product or in case of service, the service provided.
In a restaurant the product is the food, which is crucial. Quality assurance in the food service
industry is very important to the health of the business. If the product (menu) can be
differentiated amongst competitors and stand out with a unique value to customers, it'll work
out well for the restaurant. It is essential to keep our minds open and come to know the latest
development in the likes and dislikes of the customers, and while including the new services
in the product mix, assign due weightages to their preferences. While formulating the product
mix for the restaurant services, it is essential that food, the location, the service and the
management of all is balanced. The product mix for a restaurant will typically include:
 The location of the restaurant – geography, parking and indoor seating (physical
evidence)
 Food – quantity, quality and variety
 Service – Server’s behaviour, the process, the people
THE PROMOTION MIX
Promotion is the way a company communicates what it does and what it can offer customers.
It includes several activities which must gain attention, be appealing, tell a consistent
message and above all else give the customer a reason to choose your product rather than
someone else’s. A good promotion is not a one way communication it should pave the way
for a dialogue with customers. Promotions should communicate the benefits that a customer
obtains from a service and not just from the process.
For a successful marketing, it is not only sufficient to concentrate on the quality of services
but its impact in generating promotion for the business. The promotion should be in such a
way that the prospects come to know about the quality being offer to them as a customer.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 18
This focuses the attention on innovation promotional measures. The components of
promotion include advertisement, publicity, sales promotion, personal selling, word-of-mouth
promotion and loyalty programs. Promotion is one element comprises all the efforts the
company or organization makes to stimulate the popularity of their product in the market.
Promotions have become a critical factor in the service marketing mix. Services are easy to
be duplicated and hence it is generally the brand which sets a service apart from its
counterpart. You will find a lot of banks and telecom companies promoting themselves
rigorously. Why is that? It is because competition in this service sector is generally high and
promotions are necessary to survive. A promotion does not just mean communicating to your
customers. It is just as important to ensure your internal stakeholders are aware of the value
and attributes of your products. This means communication effectively to your staff/fellow
employees so that they can be knowledgeable and share expertise with their customers.
THE PRICE MIX
Price the customer pays for a service or product and it is the most important factor for
marketing. A service is only worth what a customer is prepared to pay for it. The price also
needs to be competitive, but this does not necessarily mean the cheapest; the small business
may be able to compete with larger rivals by adding extra services or details that will offer
customers better value for money. Your pricing must also provide a profit. It is the only
element of the marketing mix that generates revenue – everything else represents a cost.
The price of a product or service is determined by all factors that an organization invests
during the preparation of the product. For instance material costs, market share, product
identity etc. The price of a product may go up or go down depending on time and the price of
a certain product may vary because of market developments.
Pricing in case of services is rather more difficult than in case of products. If you were a
restaurant owner, you can price people only for the food you are serving. But then who will
pay for the nice ambience you have built up for your customers? Who will pay for the band
you have for music? Thus these elements have to be taken into consideration while costing.
Generally service pricing involves taking into consideration labour, material cost and
overhead costs. By adding a profit mark up you get your final service pricing.
 Thinking of price as ‘cost’ to the customer helps to underscore why it is so important.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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 Price positions you in the marketplace – the more you charge, the more value or
quality your customer will expect for their money.
 Existing customers generally are less sensitive about price than new customers – a
good reason for looking after them well.
If you decided in favour of a high priced added-value approach, remember that price
‘positions’ you in the marketplace. Expectations will generally be higher; customers will
assume a higher quality product or service. Everything about your dealings with customers
must live up to the expectation of this positioning.
THE PLACE MIX
The Place where customers buy a product or receive the service must be appropriate and
convenient for the customer. The product must be available in the right place, at the right
time and in the right quality, which keeping storage, inventory and distribution cost to an
acceptable level. Place in case of services determine where is the service product going to be
located.
For Example: The best place to open up a petrol pump is on the highway or in the city. A
place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a
software company will be better placed in a business hub with a lot of companies nearby
rather than being placed in a town or rural area.
Since the service delivery is concurrent with its production and cannot be stored or
transported, the location of the service product assumes importance. Service providers have
to give special thought as to where the service is provided. This is a unique case; where you
ask the ambiance of the restaurant and the staff. How is the food delivered to the customers?
How are they being presented? What is the experience like dining in the restaurant? All of
this needs to be taken into consideration because the component of the "PLACE" for a
restaurant entails the entire process of getting the food into the customer's mouth. That
includes the experience from when they first arrive to park their cars, and being seated
promptly and offered quality service, to when the bill arrives on the table and they leave the
restaurant.
THE PEOPLE MIX
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 20
“People” is one of the elements of service marketing mix. Anyone who comes into the
contact with your customers will make an impression, and that can have a profound effect –
positive or negative – on customer satisfaction. In Booms and Bitner’s service marketing
mix, ‘people’ include people who are directly or indirectly involved in the trade of the
product or service. It is mainly the customer contact employees who are the face of the
organization and they translate the quality into a service. They are the ‘service’ providers on
account of their occupation or entrepreneurship.
Service companies are thoroughly aware that they must effectively manage the customer
contact employees in order to monitor the quality of the service with respect to attitudes and
behaviour. This is very important in service companies because there might be a large
variable in the performance of the customer contact employees in relation to the results of the
services delivered. The quality of a service between service companies and customers
(hospital intake, having a meal in a restaurant or accountancy or management consultancy
services) can vary very strongly in addition to other important factors. The lack of
homogeneity in services creates difficulties for service companies.
Delivery of services often occurs during an interaction between a customer and contact
employees. Attitude and behaviour of an employee create a perception of the service as
experienced by the customer (customer perception). This perception may be either positive or
negative. It is even more important because it can influence customer satisfaction and in turn
the customer’s purchase intentions.
The reputation of your brand rests in your people’s hand. They must, therefore be
appropriately trained, well motivated and have the right attitude. It is essential to ensure that
all employees who have contact with customers are not only properly trained, but also the
right kind of people for the job. Many customers cannot separate the product or service from
the staff member who provides it. This shows the importance of your people. People define
your service and therefore it is your unique selling point in case of services.
For Example: A restaurant is known as much for its food as for the service provided by its
staff.
THE PROCESS MIX
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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The element ‘Process’ of the service marketing mix represents the activities, procedures,
protocols and more by which the service in question is eventually delivered to the customer.
As services are results of actions for or with customers, a process involves a sequence of
steps and activities to get there. The element ‘process’ of the service marketing mix is an
essential element within the entire service marketing mix strategy. This element comprises all
activities and services in which the people involved play an important role.
As a service is made up of a chain of activities, it is important to take the possible waiting
period between the activities into consideration. That is why it is important that marketers
take care of the communication about possible delivery times and by doing so the
management of customer expectations. Creating and managing effective service processes are
for the existence of service companies. Managing the process factor is mainly due to the
perish-ability of services which means that the services cannot be inventoried, stored for
reuse or returned. For instance, airline seats that are not booked cannot be reclaimed. It is
therefore important that the service companies manage demand as well as they possibly can.
Another distinguishing characteristic of a process in relation to a service is the evidence to be
provided to the customer and this is often a standardized or customized approach based on
the customer’s needs and expectations. Feedback from the customer will see to the required
tightening in the process with the aim to meet the customers’ needs. The delivery system and
the flexibility of the employees are two other key factors in the successful delivery of a
service. As services are dynamic and experiential, service companies also use a blue print
method called ‘Service Blue Printing’. This process-based method provides a better
management of the service in the area of internal and external interaction makes this
transparent and ultimately this is implemented in practice.
THE PHYSICAL EVIDENCE MIX
The physical evidence within the service marketing mix refers to an environment in which a
service comes about from an interaction between an employee and a customer which is
combined with a tangible commodity. The physical evidence includes a representation of a
service for instance brochures, company stationery, business cards, reports, company website,
etc. A good example is a hotel. The design, furnishing, lighting and decoration of a hotel as
well as the appearance and the attitudes of the employees have a certain influence on the
quality of the service and customer experience.
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For example for a theme park, restaurant, or school, its ‘service scope’ or the environment in
which the service takes places (service setting) is of crucial importance when it concerns
communicating about the service and the positive influencing of customer experience. This
service scope includes three physical environment dimensions that represent the relation
between services and environment, namely:
1. Environmental conditions such as temperature, sound, smell, etc.
2. Space and functions such as map, equipment, decoration, etc.
3. Signs, symbols and artefacts such as signature, decoration style, personal touch, etc.
As services are intangible, customers are continuously looking for concrete clues to help
them understand the nature of the service company. The more intangible the service the more
important it is to make the service around it tangible. Credit cards are a good example of
tangible proof compared to the provision of (intangible) credit facilities by credit card
companies and banks. In conclusion, the physical evidence serves as a visual metaphor of
what the company represents, what services it facilitates and the relations between customers
and employees. Another important point for consideration: satisfied customers. Satisfied
customers are the best publicity for the services or products to be delivered. The marketing
strategy must be effective, in which satisfaction of existing customers can be communicated
to potential customers. Social marketing is a useful tool in this respect. It is not tangible but it
supplies physical evidence with the aid of for instance a written recommendation by a
customer or user.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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OBJECTIVES
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Objectives:
 To understand the product and service preferences of the current customers of Mast
Kalandar.
 To identify the criteria used by the potential customers to select a restaurant.
 To identify the primary areas of improvement for Mast Kalandar in the context of the
service marketing mix.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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RESEARCH METHODOLOGY
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Research Design
The first part of the research was the exploratory research where I interviewed experts to
arrive a definition of service quality for my project. As part of the study I did secondary
research to analyse the secondary data available on the websites, Blogs, Facebook page of
Mast Kalandar, and Books; to help identify the criteria which holds important in a service
marketing mix. The data collected from the secondary research and expert interview helped
outline the need for primary research.
The second part of the research included primary research where primary data was collected
through a split questionnaire which was designed to analyse the two set of customers, the
existing or aware and the potential customers. The primary data was to understand the current
market scenario of Mast Kalandar in Pune, Maharashtra and its potential market for further
expansion within the same city. The sample size was 100 respondents, of which 49 where
male and 51 female.
The process of collecting data took place in a duration of three week at various malls and
retails outlets surrounding the nearest location of Mast Kalandar. For prospective customers,
data collection was mainly based on convenience sampling. After the field work was
completed, data analysis was conducted to draw conclusions.
The research was conducted in the city of Pune, Maharashtra, India during a time period of
three weeks in the month of June and July 2014.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 27
LIMITATIONS
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The limitation of this study is given below:
 The study was undertaken in the limited geographical areas of the Pune City.
 Time Frame of the study was selective (Either morning or evening)
 Limited time frame for sample collection
 Difficulty to obtain data from every eligible respondent.
 Seasonal variations were not accounted for as the research was carried out only for
three weeks.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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DATA ANALYSIS
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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The total sample taken for this research is of 100 units. The graph indicates that 51% of the
total sample is Aware Non-customers of Mast Kalandar and other 49% are Non-customer or
potential customer of Mast Kalandar.
51%
49%
Sample Unit Division
Aware Non-customer Non-customer
Spring Leaf Retail Private Limited – Mast Kalandar 2014
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The sample included 51% Female respondents and 49% Male respondents out of a sample
unit of 100 respondents. Both the gender is part of the Aware and Non-Aware customers.
49%
51%
Respondents as per Gender
Male Female
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 32
Aware but Non-Customers of Mast Kalandar
The data is specifically an analysis of the 49% respondents who are Aware about Mast
Kalandar. Only 39% of the 49 respondents said that they have gone to Mast Kalandar either 1
time or less than 1 times a month. 41% of the respondents have mentioned that they visit
Mast Kalandar either 2 to 5 times a month. 18% of the respondents have mentioned that they
visit Mast Kalandar 5 to 10 times in a month, and only 2% have responded that they visit
Mast Kalandar more than 10 times a month.
39%
41%
18%
2%
1) How often do you visit Mast Kalandar in a
month?
Less than 1 2 to 5 5 to 10 Greater than 10
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 33
The respondents who have chosen the option “Less than 1” in the previous questions (39%)
were asked the following question. 40% of the total said that they were Lack of promotions
of the product/service of Mast Kalandar. 20% have respondent that they have not visit MK
because of the negative reviews/feedbacks. 15% have respond that they are not find it
interesting to visit MK while the other 15% said that they are not interested in the Vegetarian
food. The last 10% of the respondents mentioned that the locations were inaccessible and
therefore they have not gone to any of the MK outlets.
15%
20%
15%
40%
10%
2) If you have chosen "Less than 1" option in
question #1, than please mention why have
you not been to Mast Kalandar?
Did not find it interesting to try Negative Reviews/feedbacks
Not interested in Vegetarian food Lack of Promotions
Inaccessible locations
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 34
The total 49% of the Aware customers were asked how they would rate Mast Kalandar
compared to its competitors. Out of which 51% said it is an average restaurant, 31% said it is
a very good place to have food and 18% mentioned that it is fair. No respondent mentioned
that it is Excellent (0%).
18%
51%
31%
0%
3)How would you rate Mast Kalandar
compared to its competitors?
Fair Average Very good Excellent
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 35
In the given chart 32% agree that Food Variety is the most important factor when choosing a
restaurant. 21% agree that Food Quality ranks as second most important factor. Respondents
aggregating 15% agree that Pricing/Cost is important. 13% agree that Ambience and a
Pampering Service is a required in the service sector. 4% agree that Reviews/Feedbacks make
a difference when choosing a restaurant, and finally 2% say that Parking Services is also a
important factor while selecting the restaurants.
32%
21%
13%
13%
4%
15%
2%
4)What do you feel is the most important
factor while choosing your restaurant?
Food Variety Food Quantity Pampering Service
Ambience Reviews/Feedbacks Pricing/Cost
Parking Services
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 36
The 29% of the aware customers agree Food Quality/Food Quantity needs improvement. The
21% mention that Pricing/Discounts would convince them for visiting Mast Kalandar. 18%
said a good ambience is required at the outlets and 14% said the service needs to improve.
10% said that the concept of restaurant needs to be improved or changed for them to be more
comfortable. 6% mentioned that the Home Delivery needs improvement from the
management’s side and 2% said that Parking is the improvement which would attract them to
Mast Kalandar.
29%
14%
18%
10%
21%
2%
6%
5)What factor should Mast Kalandar improve to
compete better for your business?
Food Quality/Quantity Service Ambience
Concept of Restaurant Pricing/Discounts Parking Services
Home Delivery Service
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 37
45 % of the respondents responded that they are made their decisions based on references of
Friends and Family members. 17% said that they go through Promotion Pamphlets to try out
a restaurant. 16% said they use Internal Portals to select their restaurants and 16% said that
they do a Random Selection. 6% of the respondents said that use Social Media to select their
restaurants.
16%
45%
17%
6%
16%
6)How do you generally select your restaurant?
Internet portals Friends and Family Promotion Pamplets
Social Media Random Selections
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 38
Non-Customers of Mast Kalandar (Potential Customers)
The non-aware customers or the potential customers were questioned the next set of
questions. Out of 49% of the respondents, 70% said that they eat out usually 2 to 5 times a
month. 16% said that they eat out less than 2 times a month and 14% responded they eat out 5
to 10 times on monthly basis. No customer answered that they eat out more than 10 times a
month.
16%
70%
14%
0%
1)How frequently do you eat out in a month?
Less than 2 2 to 5 5 to 10 Greater than 10
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 39
The Potential customers of Mast Kalandar responded that 29% prefer Chinese and other 29%
prefer North Indian food. 18% said that they prefer south Indian food and 14% said
Continental. Another 8% of the sample said they enjoy Maharashtra food and 2% prefer
Italian.
29%
14%
2%
8%
29%
18%
2)Which of the following cuisine is the most
preferred by you?
Chinese Continental Italian Maharashtran North India South India
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 40
The Forty-three percent of the respondents prefer Vegetarian food, while 41% prefer Non-
Vegetarian food. The rest 14% prefer having Both and 2% said that they do have any such
preference.
41%
43%
14%
2%
3)Which of the following do you prefer the
most?
Non Veg Veg Both No preference
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 41
The following questions highlights the given marketing P’s that is most focused on by the
customer. Out of 49 respondents, 33% mentioned that Food Variety and Quality creates the
most influence. While 29% said that Customer Service is important in the service industry,
18% mentioned that Pricing creates a big decision while selecting the restaurant. The 8% of
the respondents said that Promotion influences their choices and another 8% said that the
restaurants Convenient Location creates an influence. The last of the 4% said the Ambience
makes a big difference to them.
4%
8%
29%
33%
18%
8%
4)As a consumer, what factors affect the most
while choosing a restaurant?
Ambience Convenient Locations
Customer Service Food Variety and Quality
Pricing Promotion
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 42
Out of 49 respondents, 51% said they spend an average of 201 to 500 Rupees on a meal of
two. 31% said the ideal amount to spend for a meal of two is 101 to 200 Rupees and 12%
said an amount of above 500 is ideal. Only 6% of the respondents said that an amount of Less
than 100 is ideal for a meal of two.
31%
51%
12%
6%
5)What is the ideal amount one should spend
when they go out to eat for a meal of two?
101 - 200 201 - 500 Above 500 Less than 100
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 43
In the given question, 29% of the respondent said that more knowledge of the product/service
would convince them to try Mast Kalandar. 23% said that a good discount and deal would
attract them, while 22% mentioned that personal feedback from a friend is what convinces
them. 18% said that a better value for money given by Mast Kalandar would convince them
to try and lastly 8% said a free meal would convince them to try.
18%
23%
8%
29%
22%
6)What would convince you to try Mast
Kalandar?
Better value for money Discounts and deals
Free meals More Knowledge about the place
Personal feedback crom a friend
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 44
Out of 49 respondents, 33% said Food Variety attracts the most in a restaurant, while 23%
said Feedback and Reviews convinces them to try a restaurant. 20% of the respondents say
that Prices/Discounts attract them while 14% said that it is the Promotion factor. 6% of the
respondents said that Star Ratings of the restaurants attracts them, while 4% said it is the
Ambience which attracts them the foremost.
14%
23%
33%
20%
4%
6%
7)What attracts you to any given restaurant?
Promotions Feedback and Reviews
Food Variety Prices/Discounts
Ambiance Star Ratings of the restaurants
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 45
FINDINGS
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 46
The sample size taken from the population is 100 units. The survey was conducted in various
public places in Pune, Maharashtra. The data gives the following conclusions:
 Almost 51% of the targeted population is aware about Mast Kalandar. Hence, Mast
Kalandar has expanded into the Pune market successfully.
 41% of the aware-non customer do visit Mast Kalandar at least 2 to 5 times a month,
where in only 39% visit or have visited once.
 The 49% of the aware population have not visited Mast Kalandar frequently due to
lack of promotions and 20% have mentioned that a negative review or feedback has
affected their decision for visiting Mast Kalandar. The organization would gain more
business by doing more promotion to reach to the right target and create awareness.
 Nearly 51% of the population agree that Mast Kalandar stands as an average
restaurant compared to its competitors.
 As per data analysis, 29% of the population agree that Mast Kalandar requires
improvement in the quality and quantity of the food. The service factor holds the food
as the product and therefore it is the biggest area of improvement.
 Mast Kalandar pricing has no affect on its non-customers as 51% agree that they
spend around 201 to 500 rupees for a meal of two. Therefore, the other areas in the
organization require improvement and not the price.
 29% of the population agree that Mast Kalandar needs to create awareness of its
product and service.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 47
RECOMMENDATIONS
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 48
Recommendations:
 Mast Kalandar needs to work on its food quality and quantity since the data analysis
supports the same, it would be best for Mast Kalandar to conduct food tasting event
for the city of Pune.
 The brand Mast Kalandar should do more advertisements through different mediums.
The word of mouth has done almost 50% penetrations in the market and therefore
little more advertisement will give positive rise to the organization.
 Mast Kalandar needs to improve the process of the service which is being provided
currently. The customers who are regular may over look the mistakes but very few
first time customers return if the process of the service is provided properly. The
process starts from the time the customer enters to the outlet till the time they exist
with satisfaction.
 The people are the face of the service; therefore it is recommended that Mast
Kalandar should implement a training program for its employees on how to handle the
service as representative. The training program will help motivate the employees to
perform better and feel more confident.
 The organization overall requires a better communication process within its hierarchy.
Especially since the organization has several outlets in four different cities.
 Analysis of the location should be taken in consideration before launching a new
outlet in Pune.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 49
LEARNING
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 50
My internship at Mast Kalandar Pune was a very good experience. This is my first ever
experience to work in a restaurant industry. During my internship I got an opportunity to
work with employees at all levels. With this experience I gained lot of knowledge related to
the service, the product, the people, the process and various promotional events undertaken.
I realized that the learning in classrooms have a practical application in an organization.
The research undertaken brought to light the areas of improvement which were unexpected.
Especially during expansion of any organization, a market research gives very important
insights which help formulate an effective strategy.
I learned that strategies planned by the management have to take into account the geographic
location where they will be implemented. I also learnt that the widely taught concept of 7P’s
in business schools has application in the industry. While designing the questionnaire, the
7P’s were kept in mind to ensure all aspects of the business were taken into account.
During my observation period for the first few weeks, I learned that a continuous feedback
from a customer is very important. The service industry requires constant improvement
and change to survive within the competition. Before collecting feedback it is important to
understand the need for feedback and how to approach our customer for the same. And one
should be careful with its communication because we represent the company’s name.
In today’s high competitive environment it is required to have promotional campaigns even
if they are over budgeted. A business without marketing tends to fail at a higher speed than
the business who invests in little in to promotion; therefore it is very important to run
promotional campaigns. The managing of the event is like an art and science which always
has the opportunity to fail despite of the high planning, and sometimes last minute planning is
more successful.
The hierarchy in any organization is set not only for leadership role but also for
communication purposes. It is perceived that every organization should have a strong
communication between all the levels and also among teams. I learned that all employees
hold valuable information in the organization and hence their suggestions should not be
ignored. The managers in the organization hold the bottom half and the top half of the
organization together. Hence, not only do they handle external marketing but they are also
required to do continuous internal marketing.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 51
While sharing feedback with the managers of each location, I realized that how important it is
to know how to work with people from different backgrounds. As a manager, leadership and
team building capabilities are required to keep up the motivation of the employees. An
organization may deny the need for training and development for its people, but it is very
much essential in a service industry where people are the face of the organization.
My biggest learning from my project is that an organization should be open to change,
because only then it can understand the current and potential market scenario.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 52
CONTRIBUTION TO
ORGANIZATION
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 53
CONTRIBUTION TO THE ORGANIZATION
 The research project will provide a base for improving the service given at Mast
Kalandar compared to its competitors. It will also give an understanding of the
potential market in Pune for its expansion.
 A promotional event was organized for the loyal customers called “How big is your
appetite”. Collection of feedback was taken during the event of the loyal customers
for Mast Kalandar’s reference.
 Customer feedback was collected for three weeks, during which consumer database
was created for promotional purposes.
 Promotion of Mast Kalandar was done through Zomato. This task directly affected the
brand image of Mast Kalandar, as it was to provide positive feedback on real time
basis from the customers.
.
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 54
BIBILOGRAPHY
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 55
Websites
Van Vliet, V. (2011). Service Marketing mix – 7 P’s. November 16th
2013 from ToolsHero:
http://www.toolshero.com/service-marketing-mix-7ps
Denise Fay (2012), “How to Give Your Services the Product Factor” – Marketing Strategy.
May 02nd
2012 from http://tweakyourbiz.com/marketing/2012/05/02/how-to-give-your-
services-the-product-factor/
MBA Skool (2011 – 2014) “Service Perishability” – Service Marketing Mix -
http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/2155-service-
perishability.html
Marketing 91 “Seven Characteristics of Services” – January 17th
2012 -
http://www.marketing91.com/intangibility-in-services/
Boundless. “Inseparability.” Boundless Marketing. Boundless, 27 Jun. 2014. Retrieved 23
Nov. 2014 from https://www.boundless.com/marketing/textbooks/boundless-marketing-
textbook/services-marketing-6/services-versus-products-49/inseparability-247-4630/
Boundless. “Product, Place, Promotion, & Price.” Boundless Marketing. Boundless, 14 Nov.
2014. Retrieved 23 Nov. 2014 from
https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/services-
marketing-6/marketing-mixes-for-services-50/product-place-promotion-price-251-3479/
Mast Kalandar – “Company’s Website” – November 24th
2014 -
http://www.mastkalandar.com/
Facebook – “Mast Kalandar food/Beverages” – Mast Kalandar Facebook page. – November
24th
2014 - https://www.facebook.com/MastKalandarRestaurants
Team YS – “Gaurav Jain & Pallavi Gupta, Mast Kalandar: “In 3 years, we’re looking at 100
branches across India.”” – Your Story – March 31st
2011 -
http://yourstory.com/2011/03/gaurav-jain-pallavi-gupta-mast-kalandar-in-3-years-were-
looking-at-100-branches-across-india/
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 56
Journals
The Chartered Institute of Marketing, “Seven P’s”, CIM 2009
Continuum Learning Pte Ltd., “Customer Services_7Ps of Service”, CLPL 2011
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 57
ANNEXURE
Spring Leaf Retail Private Limited – Mast Kalandar 2014
Sadhu Vaswani Institute of Management Studies Pune Page 58

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Sazrin Gidani_SIP_MBA 2014 (1)

  • 1. A PROJECT REPORT ON “CRITERIA EMPLOYED TO UNDERSTAND THE PREFERENCE OF THE EXISTING CUSTOMERS AND POTENTIAL CUSTOMERS OF MAST KALANDAR IN PUNE” AT MAST KALANDAR – SPRING LEAF RETAIL PVT LTD SUBMITTED TO SAVITRIBAI PHULE UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF BUSINESS ADMISTRATION SUBMITTED BY MS. SAZRIN A. GIDANI (Marketing) THROUGH SADHU VASWANI INSTITUTE OF MANAGEMENT STUDIES FOR GIRLS, PUNE MBA II 2013-15
  • 2. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 2 ACKNOWLEDGEMENT The internship opportunity I got with Mast Kalandar was a great chance for learning and professional development in the restaurant industry. I am grateful for having a chance to meet so many wonderful people and professionals who led me though this internship. I would like to use this opportunity to express my deepest gratitude to the CEO of Mast Kalandar, Mr. Gaurav Jain, who in spite of being busy still managed to take time out to guide me. Also, I would like to thank Ms.Vrinda Pandey, (Head of Marketing and Customer Service) for providing me full guidance with my project. I choose this moment to acknowledge her contribution gratefully. Special thanks to my internal guide, Ms. Smita Mehendale (Assistant Professor at SVIMS) for her kind support and motivation. I am very grateful to my family, marketing classmates and friends who provided me with continuous love and support during my internship and further with this project. I perceive this opportunity as a big milestone in my career development. I will strive to use gained skills and knowledge in the next level of my career. Thank you once again. Yours Sincerely, Sazrin A. Gidani
  • 3. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 3 DECLARATION I Sazrin A. Gidani, student of Sadhu Vaswani Institute of Management Studies hereby declare that the project entitled “Criteria employed to understand the preferences of existing customers and potential customers of Mast Kalandar in Pune” submitted in partial fulfillment of the requirement for the Degree of Masters in Business Administration is my original work and the project has not formed the basis for the award of any degree, associate-ship, fellowship or any other similar titles. Place: Pune Signature of the Student Date: Ms. Sazrin A. Gidani
  • 4. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 4 CERTIFICATE This is to certify that the project work titled “Criteria employed to understand the preferences of existing customers and potential customers of Mast Kalandar in Pune” is a bonafide work of Ms. Sazrin A. Gidani (Seat no. ) carried out in partial fulfilment for the award of Master of Business Administration (M.B.A) of Savitribai Phule Pune University under my guidance. This project work is original and not submitted earlier for the award of any degree/diploma or associate ship of any other University/Institution to the best of my knowledge and belief. Dr. B.H Nanwani Ms. Smita Mehendale Director – SVIMS Internal Guide
  • 5. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 5 TABLE OF CONTENT Sr. No Section Page No. 1 Executive Summary.................................................................................. 6 2 Company History and Background.......................................................... 8 3 Outline of the Problem............................................................................. 11 4 Literature Review.................................................................................... 13 5 Objectives of the Study............................................................................. 23 6 Research Methodology............................................................................. 25 7 Limitation of the Study............................................................................. 27 8 Data Analysis and Interpretation.............................................................. 29 9 Findings.................................................................................................. 45 10 Recommendations................................................................................... 47 11 Learning’s.................................................................................................. 49 12 Contribution to the organization................................................................ 53 13 Bibliography.............................................................................................. 54 14 Annexure................................................................................................... 57
  • 6. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 6 EXECUTIVE SUMMARY
  • 7. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 7 My Project title is “Criteria employed to understand the preferences of existing customers and potential customers of Mast Kalandar in Pune” The project has been undertaken to understand what is the preferences of current customers and the potential customers in context to the service marketing mix for Mast Kalandar in Pune, Maharashtra. It was also undertaken to understand the areas for improvement to facilitate expansion plan by Mast Kalandar in Pune. The city of Pune has good potential for expansion in the food industry. The research project started with an exploratory research done during the first few weeks of the internship, where the criteria employed by customers in the choice of a restaurant were explored. Later primary research was conducted in three weeks that helped analyzed the areas of improvement required for the organization in context to Mast Kalandar. It gave an understanding what was required for the organization to improve to have a steady growth and strong expansion. The major areas for improvement included the quality and quantity of the product served, the promotion required to draw attention of the targeted segmentation and the training required of the people who directly deal with the customers in terms of service. These findings are supported by the data collected through the questionnaire. It is recommended that Mast Kalandar should continue its expansion strategy and improve on the giving areas by doing promotions on interval basis. It should also do another survey to understand the taste preference of its current customers for further improvement related to the quality and quantity of the food.
  • 8. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 8 ORGANIZATION BACKGROUND
  • 9. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 9 Mast Kalandar is a North Indian fast casual chain of restaurants started by Spring Leaf Retail Pvt Ltd., a company promoted by Gaurav Jain and Pallavi Gupta (Co-founders). It was to provide a wholesome and healthy eating experience to the calorie conscious working professionals, and to serve the old Indian recipes with a new age perspective. The food is cooked fresh twice a day using quality ingredients to taste like home food. The menu at Mast Kalandar is a mix of recipes inspired from different dishes cooked in the homes across different states in Northern India. The spices used in these recipes are also sourced from the region from where the food is, to maintain the authentic taste. Mast Kalandar has always striven to maintain the quality of food and service as they have expanded over the last six years. It currently has thirty four branches in Bangalore, seven branches in Chennai, two in Hyderabad and six in Pune, and looking to expand up to one hundred outlets in India within the next couple years. The co-founders, Gaurav Jain and Pallavi Gupta started the venture with their personal investment of eighteen lakhs in February 2006 in Bangalore, India. Within one year, the company had a turnover of twenty five lakhs with sixty employees working. Gaurav Jain quit his job at Wipro in 2005 and continued doing research for next eleven months to create a strategy for his idea. The execution became successful when Gaurav started with his first outlet in Bangalore, where they promised to serve fresh homemade food to its customers. Now with duration of six years, Gaurav and Pallavi see a vision to expand their business in different parts of India, where they would standout for their unique selling point. The company currently has six hundred employees with a turnover of fifty crores in more than thirty-four outlets in India.
  • 10. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 10 It offers a wide range of combos starting from 100 rupees up to 250 rupees, which includes one of their signature dishes all the time. The combos are made to satisfy the health and quantity requirements of an individual. The combos consist of the signature vegetable dish of the day and other surrounding supporting items and a closure with a sweet dish. The restaurant offers a wide range of different combos and al a’ carte to fulfil ones requirement of food. Mast Kalandar claims to be little overpriced by 10% compared to its competitors, for the similar quantity of food. Mast Kalandar stands its unique selling point by providing food which is made on daily basis and is homemade; unlike other restaurants Mast Kalandar cooks its meals twice a day. The quantity of the combo is made especially for the working class professionals who wish to have homemade food without putting on extra calories and burning extra cash for unhealthy food. The outlet have good ambience and are very vibrant and filled with energy with warm colours to make their customers feel energetic while dinning. The locations chosen by the company in Pune, India are placed around the areas where working class professionals can be reached. Mast Kalandar provides north Indian flavours with a twist to various south Indian locations. It provides additional service such as home delivery and a small program for its loyal customers.
  • 11. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 11 OUTLINE OF THE PROBLEM
  • 12. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 12 This project report is based on the research conducted during my two months internship with the marketing department of Mast Kalandar. The main purpose of my internship was to understand the requirements of existing and potential customer of the organization. I went through several days of observation with various managers to understand the flow of the service. After three weeks it was understood that many areas of the organization required attention and improvement. During this period I analysed all the factors which may be important to the customers of Mast Kalandar. I learned to analyze every given angle of a service industry which was important to an everyday customer; in case of Mast Kalandar, it was the targeted group of working professionals and families. Every time a consumer opts for service they display forms of buyer behaviour that are influenced by many factors. In the restaurant industry it is a challenge to balance all the marketing mix P’s as it is the only factor which is in the hands of a marketer. The marketing mix given by Philip Kolter and extended mix by Booms and Bitner can be applied to any product or service that is being provided. The sales for every location in Pune were down and service feedback on the social media page was increasing negative. Hence the need for research was identified to understand what changes need to be brought into to ensure consistent growth of Mast Kalandar in Pune market. The findings of the project include how the current customers of Mast Kalandar respond to the services provided and what do the potential customers seek in similar services. In India the hospitality industry is growing at an unprecedented rate with a year on year growth of 4.9% from the previous year (Source India Brand Equity Foundation) and with such growth the demand and preferences of customers is likely to evolve. Therefore this report will help the management see areas’ of improvement, which will help them to expand the business.
  • 13. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 13 REVIEW OF LITERATURE
  • 14. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 14 In 1981, using the above mentioned information, Bernard H. Booms and Mary J. Bitner further developed the traditional marketing mix developed by the American Professor of Marketing Jerome McCarthy into the extended marketing mix or services marketing mix. This services marketing mix is also called the 7P model or the 7 Ps of Booms and Bitner. This service marketing mix strategy extends the original marketing mix model from four to seven elements. While Jerome McCarthy has only defined four verifiable marketing elements, the 7Ps are an extension as a result of which this services marketing mix can also be applied in service companies and knowledge intensive environments. The 7P models, also known as the services marketing mix, go beyond the four basic marketing principles for product marketing. Services have unique characteristics, for example intangibility, heterogeneity, inseparability and perish-ability. Bernard H. Booms and Mary J. Bitner’s insight in relation to physical products and services led to an extension of the traditional marketing mix. INTANGIBILITY Products are tangible and Services are intangible in nature. Intangibility of services is derived from the fact that you cannot see or tough a service. A service is made and delivered on spot and hence it cannot be measured as easily as a tangible product. For example: A service like a restaurant is always varying because you pay as per the service that you receive. You cannot taste the food in a restaurant and then order the food. You have to first order it and then hope that it is good in taste. The intangibility of services is the dominant characteristics of services and the biggest challenge for marketers as well as service product owners. There are 5 main characteristics of intangibility of services. 1. Service cannot be touched 2. There is no precise standardisation method for services 3. Services cannot be patented 4. There are no inventories in services 5. The consumer is part of the service process because he consumes the service.
  • 15. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 15 INSEPARABILITY Inseparability is used in marketing to describe a key quality of services as distinct from goods. Inseparability is the characteristic that a service has which renders it impossible to divorce the supply or production of the service from its consumption or it explains that it is impossible to distinguish between the service and the server. Service marketing is comprised of people, processes, and physical evidence, all of which are unique to the marketing of services. People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. According to Donald Cowel “Goods are produced, sold and then consumed whereas the services are sold and then produced and consumed”. INCONSISTENCY OR VARIABILITY Inconsistency is characteristic of a service that makes them less standardized & uniform than goods inconsistency is called as variability. It is defined as the inability to establish certain concrete standards and uniformity. The quality of services can’t be standardized. There may be there basic reasons for this heterogeneity of services. The consistency occurs largely on account of – • Different services provides perform a given services at different occasions. • The services performed by an individual provider may differ overtime. • Interaction b/n customer and provider may vary by customer, companies which are highly equipment & system based & less people based on reduce insistency in services. • The service might be modified by the service provider himself. • Behavior of the human factor used to provide the service may vary. Due to all these reasons the service provider is unable to provide the same level of service each time the customer avails the service, thereby leading to the varied customer experience.
  • 16. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 16 Various forms of inconsistency may include different prices charged by different service providers. E.g. Different parking fee being charged by different contractors. Example: Mc Donald’s have been able to achieve consistency in services delivery by adopting production line approach to services and standardizing every aspect of services operation down to the width of the smile that each customer should be greeted with. INVENTORY OR PERISHABILITY The inventory relates to perishability characteristics in services marketing. The services cannot be easily saved stored for the future use. The combination of perishability & Fluctuating demand present challenges for marketers engaged in product planning, pricing, promotion, distribution of services. This is the second most striking feature of the services. The goods not sold today can be stored, preserved for further selling in some future date. But in the context of services no stock or inventory can be maintained of it we fail to sell the services, it is lost only not for today but even on the future. Example: In the restaurant, the food provided one day or one time period cannot be served again the next day or the next time slot because the food becomes uneatable hence it is known to be perished. ELEMENTS OF MARKETING MIX
  • 17. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 17 THE PRODUCT MIX In services, the "product" is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements, and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. The most basic marketing mix tool is the product or in case of service, the service provided. In a restaurant the product is the food, which is crucial. Quality assurance in the food service industry is very important to the health of the business. If the product (menu) can be differentiated amongst competitors and stand out with a unique value to customers, it'll work out well for the restaurant. It is essential to keep our minds open and come to know the latest development in the likes and dislikes of the customers, and while including the new services in the product mix, assign due weightages to their preferences. While formulating the product mix for the restaurant services, it is essential that food, the location, the service and the management of all is balanced. The product mix for a restaurant will typically include:  The location of the restaurant – geography, parking and indoor seating (physical evidence)  Food – quantity, quality and variety  Service – Server’s behaviour, the process, the people THE PROMOTION MIX Promotion is the way a company communicates what it does and what it can offer customers. It includes several activities which must gain attention, be appealing, tell a consistent message and above all else give the customer a reason to choose your product rather than someone else’s. A good promotion is not a one way communication it should pave the way for a dialogue with customers. Promotions should communicate the benefits that a customer obtains from a service and not just from the process. For a successful marketing, it is not only sufficient to concentrate on the quality of services but its impact in generating promotion for the business. The promotion should be in such a way that the prospects come to know about the quality being offer to them as a customer.
  • 18. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 18 This focuses the attention on innovation promotional measures. The components of promotion include advertisement, publicity, sales promotion, personal selling, word-of-mouth promotion and loyalty programs. Promotion is one element comprises all the efforts the company or organization makes to stimulate the popularity of their product in the market. Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions are necessary to survive. A promotion does not just mean communicating to your customers. It is just as important to ensure your internal stakeholders are aware of the value and attributes of your products. This means communication effectively to your staff/fellow employees so that they can be knowledgeable and share expertise with their customers. THE PRICE MIX Price the customer pays for a service or product and it is the most important factor for marketing. A service is only worth what a customer is prepared to pay for it. The price also needs to be competitive, but this does not necessarily mean the cheapest; the small business may be able to compete with larger rivals by adding extra services or details that will offer customers better value for money. Your pricing must also provide a profit. It is the only element of the marketing mix that generates revenue – everything else represents a cost. The price of a product or service is determined by all factors that an organization invests during the preparation of the product. For instance material costs, market share, product identity etc. The price of a product may go up or go down depending on time and the price of a certain product may vary because of market developments. Pricing in case of services is rather more difficult than in case of products. If you were a restaurant owner, you can price people only for the food you are serving. But then who will pay for the nice ambience you have built up for your customers? Who will pay for the band you have for music? Thus these elements have to be taken into consideration while costing. Generally service pricing involves taking into consideration labour, material cost and overhead costs. By adding a profit mark up you get your final service pricing.  Thinking of price as ‘cost’ to the customer helps to underscore why it is so important.
  • 19. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 19  Price positions you in the marketplace – the more you charge, the more value or quality your customer will expect for their money.  Existing customers generally are less sensitive about price than new customers – a good reason for looking after them well. If you decided in favour of a high priced added-value approach, remember that price ‘positions’ you in the marketplace. Expectations will generally be higher; customers will assume a higher quality product or service. Everything about your dealings with customers must live up to the expectation of this positioning. THE PLACE MIX The Place where customers buy a product or receive the service must be appropriate and convenient for the customer. The product must be available in the right place, at the right time and in the right quality, which keeping storage, inventory and distribution cost to an acceptable level. Place in case of services determine where is the service product going to be located. For Example: The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area. Since the service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Service providers have to give special thought as to where the service is provided. This is a unique case; where you ask the ambiance of the restaurant and the staff. How is the food delivered to the customers? How are they being presented? What is the experience like dining in the restaurant? All of this needs to be taken into consideration because the component of the "PLACE" for a restaurant entails the entire process of getting the food into the customer's mouth. That includes the experience from when they first arrive to park their cars, and being seated promptly and offered quality service, to when the bill arrives on the table and they leave the restaurant. THE PEOPLE MIX
  • 20. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 20 “People” is one of the elements of service marketing mix. Anyone who comes into the contact with your customers will make an impression, and that can have a profound effect – positive or negative – on customer satisfaction. In Booms and Bitner’s service marketing mix, ‘people’ include people who are directly or indirectly involved in the trade of the product or service. It is mainly the customer contact employees who are the face of the organization and they translate the quality into a service. They are the ‘service’ providers on account of their occupation or entrepreneurship. Service companies are thoroughly aware that they must effectively manage the customer contact employees in order to monitor the quality of the service with respect to attitudes and behaviour. This is very important in service companies because there might be a large variable in the performance of the customer contact employees in relation to the results of the services delivered. The quality of a service between service companies and customers (hospital intake, having a meal in a restaurant or accountancy or management consultancy services) can vary very strongly in addition to other important factors. The lack of homogeneity in services creates difficulties for service companies. Delivery of services often occurs during an interaction between a customer and contact employees. Attitude and behaviour of an employee create a perception of the service as experienced by the customer (customer perception). This perception may be either positive or negative. It is even more important because it can influence customer satisfaction and in turn the customer’s purchase intentions. The reputation of your brand rests in your people’s hand. They must, therefore be appropriately trained, well motivated and have the right attitude. It is essential to ensure that all employees who have contact with customers are not only properly trained, but also the right kind of people for the job. Many customers cannot separate the product or service from the staff member who provides it. This shows the importance of your people. People define your service and therefore it is your unique selling point in case of services. For Example: A restaurant is known as much for its food as for the service provided by its staff. THE PROCESS MIX
  • 21. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 21 The element ‘Process’ of the service marketing mix represents the activities, procedures, protocols and more by which the service in question is eventually delivered to the customer. As services are results of actions for or with customers, a process involves a sequence of steps and activities to get there. The element ‘process’ of the service marketing mix is an essential element within the entire service marketing mix strategy. This element comprises all activities and services in which the people involved play an important role. As a service is made up of a chain of activities, it is important to take the possible waiting period between the activities into consideration. That is why it is important that marketers take care of the communication about possible delivery times and by doing so the management of customer expectations. Creating and managing effective service processes are for the existence of service companies. Managing the process factor is mainly due to the perish-ability of services which means that the services cannot be inventoried, stored for reuse or returned. For instance, airline seats that are not booked cannot be reclaimed. It is therefore important that the service companies manage demand as well as they possibly can. Another distinguishing characteristic of a process in relation to a service is the evidence to be provided to the customer and this is often a standardized or customized approach based on the customer’s needs and expectations. Feedback from the customer will see to the required tightening in the process with the aim to meet the customers’ needs. The delivery system and the flexibility of the employees are two other key factors in the successful delivery of a service. As services are dynamic and experiential, service companies also use a blue print method called ‘Service Blue Printing’. This process-based method provides a better management of the service in the area of internal and external interaction makes this transparent and ultimately this is implemented in practice. THE PHYSICAL EVIDENCE MIX The physical evidence within the service marketing mix refers to an environment in which a service comes about from an interaction between an employee and a customer which is combined with a tangible commodity. The physical evidence includes a representation of a service for instance brochures, company stationery, business cards, reports, company website, etc. A good example is a hotel. The design, furnishing, lighting and decoration of a hotel as well as the appearance and the attitudes of the employees have a certain influence on the quality of the service and customer experience.
  • 22. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 22 For example for a theme park, restaurant, or school, its ‘service scope’ or the environment in which the service takes places (service setting) is of crucial importance when it concerns communicating about the service and the positive influencing of customer experience. This service scope includes three physical environment dimensions that represent the relation between services and environment, namely: 1. Environmental conditions such as temperature, sound, smell, etc. 2. Space and functions such as map, equipment, decoration, etc. 3. Signs, symbols and artefacts such as signature, decoration style, personal touch, etc. As services are intangible, customers are continuously looking for concrete clues to help them understand the nature of the service company. The more intangible the service the more important it is to make the service around it tangible. Credit cards are a good example of tangible proof compared to the provision of (intangible) credit facilities by credit card companies and banks. In conclusion, the physical evidence serves as a visual metaphor of what the company represents, what services it facilitates and the relations between customers and employees. Another important point for consideration: satisfied customers. Satisfied customers are the best publicity for the services or products to be delivered. The marketing strategy must be effective, in which satisfaction of existing customers can be communicated to potential customers. Social marketing is a useful tool in this respect. It is not tangible but it supplies physical evidence with the aid of for instance a written recommendation by a customer or user.
  • 23. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 23 OBJECTIVES
  • 24. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 24 Objectives:  To understand the product and service preferences of the current customers of Mast Kalandar.  To identify the criteria used by the potential customers to select a restaurant.  To identify the primary areas of improvement for Mast Kalandar in the context of the service marketing mix.
  • 25. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 25 RESEARCH METHODOLOGY
  • 26. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 26 Research Design The first part of the research was the exploratory research where I interviewed experts to arrive a definition of service quality for my project. As part of the study I did secondary research to analyse the secondary data available on the websites, Blogs, Facebook page of Mast Kalandar, and Books; to help identify the criteria which holds important in a service marketing mix. The data collected from the secondary research and expert interview helped outline the need for primary research. The second part of the research included primary research where primary data was collected through a split questionnaire which was designed to analyse the two set of customers, the existing or aware and the potential customers. The primary data was to understand the current market scenario of Mast Kalandar in Pune, Maharashtra and its potential market for further expansion within the same city. The sample size was 100 respondents, of which 49 where male and 51 female. The process of collecting data took place in a duration of three week at various malls and retails outlets surrounding the nearest location of Mast Kalandar. For prospective customers, data collection was mainly based on convenience sampling. After the field work was completed, data analysis was conducted to draw conclusions. The research was conducted in the city of Pune, Maharashtra, India during a time period of three weeks in the month of June and July 2014.
  • 27. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 27 LIMITATIONS
  • 28. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 28 The limitation of this study is given below:  The study was undertaken in the limited geographical areas of the Pune City.  Time Frame of the study was selective (Either morning or evening)  Limited time frame for sample collection  Difficulty to obtain data from every eligible respondent.  Seasonal variations were not accounted for as the research was carried out only for three weeks.
  • 29. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 29 DATA ANALYSIS
  • 30. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 30 The total sample taken for this research is of 100 units. The graph indicates that 51% of the total sample is Aware Non-customers of Mast Kalandar and other 49% are Non-customer or potential customer of Mast Kalandar. 51% 49% Sample Unit Division Aware Non-customer Non-customer
  • 31. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 31 The sample included 51% Female respondents and 49% Male respondents out of a sample unit of 100 respondents. Both the gender is part of the Aware and Non-Aware customers. 49% 51% Respondents as per Gender Male Female
  • 32. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 32 Aware but Non-Customers of Mast Kalandar The data is specifically an analysis of the 49% respondents who are Aware about Mast Kalandar. Only 39% of the 49 respondents said that they have gone to Mast Kalandar either 1 time or less than 1 times a month. 41% of the respondents have mentioned that they visit Mast Kalandar either 2 to 5 times a month. 18% of the respondents have mentioned that they visit Mast Kalandar 5 to 10 times in a month, and only 2% have responded that they visit Mast Kalandar more than 10 times a month. 39% 41% 18% 2% 1) How often do you visit Mast Kalandar in a month? Less than 1 2 to 5 5 to 10 Greater than 10
  • 33. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 33 The respondents who have chosen the option “Less than 1” in the previous questions (39%) were asked the following question. 40% of the total said that they were Lack of promotions of the product/service of Mast Kalandar. 20% have respondent that they have not visit MK because of the negative reviews/feedbacks. 15% have respond that they are not find it interesting to visit MK while the other 15% said that they are not interested in the Vegetarian food. The last 10% of the respondents mentioned that the locations were inaccessible and therefore they have not gone to any of the MK outlets. 15% 20% 15% 40% 10% 2) If you have chosen "Less than 1" option in question #1, than please mention why have you not been to Mast Kalandar? Did not find it interesting to try Negative Reviews/feedbacks Not interested in Vegetarian food Lack of Promotions Inaccessible locations
  • 34. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 34 The total 49% of the Aware customers were asked how they would rate Mast Kalandar compared to its competitors. Out of which 51% said it is an average restaurant, 31% said it is a very good place to have food and 18% mentioned that it is fair. No respondent mentioned that it is Excellent (0%). 18% 51% 31% 0% 3)How would you rate Mast Kalandar compared to its competitors? Fair Average Very good Excellent
  • 35. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 35 In the given chart 32% agree that Food Variety is the most important factor when choosing a restaurant. 21% agree that Food Quality ranks as second most important factor. Respondents aggregating 15% agree that Pricing/Cost is important. 13% agree that Ambience and a Pampering Service is a required in the service sector. 4% agree that Reviews/Feedbacks make a difference when choosing a restaurant, and finally 2% say that Parking Services is also a important factor while selecting the restaurants. 32% 21% 13% 13% 4% 15% 2% 4)What do you feel is the most important factor while choosing your restaurant? Food Variety Food Quantity Pampering Service Ambience Reviews/Feedbacks Pricing/Cost Parking Services
  • 36. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 36 The 29% of the aware customers agree Food Quality/Food Quantity needs improvement. The 21% mention that Pricing/Discounts would convince them for visiting Mast Kalandar. 18% said a good ambience is required at the outlets and 14% said the service needs to improve. 10% said that the concept of restaurant needs to be improved or changed for them to be more comfortable. 6% mentioned that the Home Delivery needs improvement from the management’s side and 2% said that Parking is the improvement which would attract them to Mast Kalandar. 29% 14% 18% 10% 21% 2% 6% 5)What factor should Mast Kalandar improve to compete better for your business? Food Quality/Quantity Service Ambience Concept of Restaurant Pricing/Discounts Parking Services Home Delivery Service
  • 37. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 37 45 % of the respondents responded that they are made their decisions based on references of Friends and Family members. 17% said that they go through Promotion Pamphlets to try out a restaurant. 16% said they use Internal Portals to select their restaurants and 16% said that they do a Random Selection. 6% of the respondents said that use Social Media to select their restaurants. 16% 45% 17% 6% 16% 6)How do you generally select your restaurant? Internet portals Friends and Family Promotion Pamplets Social Media Random Selections
  • 38. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 38 Non-Customers of Mast Kalandar (Potential Customers) The non-aware customers or the potential customers were questioned the next set of questions. Out of 49% of the respondents, 70% said that they eat out usually 2 to 5 times a month. 16% said that they eat out less than 2 times a month and 14% responded they eat out 5 to 10 times on monthly basis. No customer answered that they eat out more than 10 times a month. 16% 70% 14% 0% 1)How frequently do you eat out in a month? Less than 2 2 to 5 5 to 10 Greater than 10
  • 39. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 39 The Potential customers of Mast Kalandar responded that 29% prefer Chinese and other 29% prefer North Indian food. 18% said that they prefer south Indian food and 14% said Continental. Another 8% of the sample said they enjoy Maharashtra food and 2% prefer Italian. 29% 14% 2% 8% 29% 18% 2)Which of the following cuisine is the most preferred by you? Chinese Continental Italian Maharashtran North India South India
  • 40. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 40 The Forty-three percent of the respondents prefer Vegetarian food, while 41% prefer Non- Vegetarian food. The rest 14% prefer having Both and 2% said that they do have any such preference. 41% 43% 14% 2% 3)Which of the following do you prefer the most? Non Veg Veg Both No preference
  • 41. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 41 The following questions highlights the given marketing P’s that is most focused on by the customer. Out of 49 respondents, 33% mentioned that Food Variety and Quality creates the most influence. While 29% said that Customer Service is important in the service industry, 18% mentioned that Pricing creates a big decision while selecting the restaurant. The 8% of the respondents said that Promotion influences their choices and another 8% said that the restaurants Convenient Location creates an influence. The last of the 4% said the Ambience makes a big difference to them. 4% 8% 29% 33% 18% 8% 4)As a consumer, what factors affect the most while choosing a restaurant? Ambience Convenient Locations Customer Service Food Variety and Quality Pricing Promotion
  • 42. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 42 Out of 49 respondents, 51% said they spend an average of 201 to 500 Rupees on a meal of two. 31% said the ideal amount to spend for a meal of two is 101 to 200 Rupees and 12% said an amount of above 500 is ideal. Only 6% of the respondents said that an amount of Less than 100 is ideal for a meal of two. 31% 51% 12% 6% 5)What is the ideal amount one should spend when they go out to eat for a meal of two? 101 - 200 201 - 500 Above 500 Less than 100
  • 43. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 43 In the given question, 29% of the respondent said that more knowledge of the product/service would convince them to try Mast Kalandar. 23% said that a good discount and deal would attract them, while 22% mentioned that personal feedback from a friend is what convinces them. 18% said that a better value for money given by Mast Kalandar would convince them to try and lastly 8% said a free meal would convince them to try. 18% 23% 8% 29% 22% 6)What would convince you to try Mast Kalandar? Better value for money Discounts and deals Free meals More Knowledge about the place Personal feedback crom a friend
  • 44. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 44 Out of 49 respondents, 33% said Food Variety attracts the most in a restaurant, while 23% said Feedback and Reviews convinces them to try a restaurant. 20% of the respondents say that Prices/Discounts attract them while 14% said that it is the Promotion factor. 6% of the respondents said that Star Ratings of the restaurants attracts them, while 4% said it is the Ambience which attracts them the foremost. 14% 23% 33% 20% 4% 6% 7)What attracts you to any given restaurant? Promotions Feedback and Reviews Food Variety Prices/Discounts Ambiance Star Ratings of the restaurants
  • 45. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 45 FINDINGS
  • 46. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 46 The sample size taken from the population is 100 units. The survey was conducted in various public places in Pune, Maharashtra. The data gives the following conclusions:  Almost 51% of the targeted population is aware about Mast Kalandar. Hence, Mast Kalandar has expanded into the Pune market successfully.  41% of the aware-non customer do visit Mast Kalandar at least 2 to 5 times a month, where in only 39% visit or have visited once.  The 49% of the aware population have not visited Mast Kalandar frequently due to lack of promotions and 20% have mentioned that a negative review or feedback has affected their decision for visiting Mast Kalandar. The organization would gain more business by doing more promotion to reach to the right target and create awareness.  Nearly 51% of the population agree that Mast Kalandar stands as an average restaurant compared to its competitors.  As per data analysis, 29% of the population agree that Mast Kalandar requires improvement in the quality and quantity of the food. The service factor holds the food as the product and therefore it is the biggest area of improvement.  Mast Kalandar pricing has no affect on its non-customers as 51% agree that they spend around 201 to 500 rupees for a meal of two. Therefore, the other areas in the organization require improvement and not the price.  29% of the population agree that Mast Kalandar needs to create awareness of its product and service.
  • 47. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 47 RECOMMENDATIONS
  • 48. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 48 Recommendations:  Mast Kalandar needs to work on its food quality and quantity since the data analysis supports the same, it would be best for Mast Kalandar to conduct food tasting event for the city of Pune.  The brand Mast Kalandar should do more advertisements through different mediums. The word of mouth has done almost 50% penetrations in the market and therefore little more advertisement will give positive rise to the organization.  Mast Kalandar needs to improve the process of the service which is being provided currently. The customers who are regular may over look the mistakes but very few first time customers return if the process of the service is provided properly. The process starts from the time the customer enters to the outlet till the time they exist with satisfaction.  The people are the face of the service; therefore it is recommended that Mast Kalandar should implement a training program for its employees on how to handle the service as representative. The training program will help motivate the employees to perform better and feel more confident.  The organization overall requires a better communication process within its hierarchy. Especially since the organization has several outlets in four different cities.  Analysis of the location should be taken in consideration before launching a new outlet in Pune.
  • 49. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 49 LEARNING
  • 50. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 50 My internship at Mast Kalandar Pune was a very good experience. This is my first ever experience to work in a restaurant industry. During my internship I got an opportunity to work with employees at all levels. With this experience I gained lot of knowledge related to the service, the product, the people, the process and various promotional events undertaken. I realized that the learning in classrooms have a practical application in an organization. The research undertaken brought to light the areas of improvement which were unexpected. Especially during expansion of any organization, a market research gives very important insights which help formulate an effective strategy. I learned that strategies planned by the management have to take into account the geographic location where they will be implemented. I also learnt that the widely taught concept of 7P’s in business schools has application in the industry. While designing the questionnaire, the 7P’s were kept in mind to ensure all aspects of the business were taken into account. During my observation period for the first few weeks, I learned that a continuous feedback from a customer is very important. The service industry requires constant improvement and change to survive within the competition. Before collecting feedback it is important to understand the need for feedback and how to approach our customer for the same. And one should be careful with its communication because we represent the company’s name. In today’s high competitive environment it is required to have promotional campaigns even if they are over budgeted. A business without marketing tends to fail at a higher speed than the business who invests in little in to promotion; therefore it is very important to run promotional campaigns. The managing of the event is like an art and science which always has the opportunity to fail despite of the high planning, and sometimes last minute planning is more successful. The hierarchy in any organization is set not only for leadership role but also for communication purposes. It is perceived that every organization should have a strong communication between all the levels and also among teams. I learned that all employees hold valuable information in the organization and hence their suggestions should not be ignored. The managers in the organization hold the bottom half and the top half of the organization together. Hence, not only do they handle external marketing but they are also required to do continuous internal marketing.
  • 51. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 51 While sharing feedback with the managers of each location, I realized that how important it is to know how to work with people from different backgrounds. As a manager, leadership and team building capabilities are required to keep up the motivation of the employees. An organization may deny the need for training and development for its people, but it is very much essential in a service industry where people are the face of the organization. My biggest learning from my project is that an organization should be open to change, because only then it can understand the current and potential market scenario.
  • 52. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 52 CONTRIBUTION TO ORGANIZATION
  • 53. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 53 CONTRIBUTION TO THE ORGANIZATION  The research project will provide a base for improving the service given at Mast Kalandar compared to its competitors. It will also give an understanding of the potential market in Pune for its expansion.  A promotional event was organized for the loyal customers called “How big is your appetite”. Collection of feedback was taken during the event of the loyal customers for Mast Kalandar’s reference.  Customer feedback was collected for three weeks, during which consumer database was created for promotional purposes.  Promotion of Mast Kalandar was done through Zomato. This task directly affected the brand image of Mast Kalandar, as it was to provide positive feedback on real time basis from the customers. .
  • 54. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 54 BIBILOGRAPHY
  • 55. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 55 Websites Van Vliet, V. (2011). Service Marketing mix – 7 P’s. November 16th 2013 from ToolsHero: http://www.toolshero.com/service-marketing-mix-7ps Denise Fay (2012), “How to Give Your Services the Product Factor” – Marketing Strategy. May 02nd 2012 from http://tweakyourbiz.com/marketing/2012/05/02/how-to-give-your- services-the-product-factor/ MBA Skool (2011 – 2014) “Service Perishability” – Service Marketing Mix - http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/2155-service- perishability.html Marketing 91 “Seven Characteristics of Services” – January 17th 2012 - http://www.marketing91.com/intangibility-in-services/ Boundless. “Inseparability.” Boundless Marketing. Boundless, 27 Jun. 2014. Retrieved 23 Nov. 2014 from https://www.boundless.com/marketing/textbooks/boundless-marketing- textbook/services-marketing-6/services-versus-products-49/inseparability-247-4630/ Boundless. “Product, Place, Promotion, & Price.” Boundless Marketing. Boundless, 14 Nov. 2014. Retrieved 23 Nov. 2014 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/services- marketing-6/marketing-mixes-for-services-50/product-place-promotion-price-251-3479/ Mast Kalandar – “Company’s Website” – November 24th 2014 - http://www.mastkalandar.com/ Facebook – “Mast Kalandar food/Beverages” – Mast Kalandar Facebook page. – November 24th 2014 - https://www.facebook.com/MastKalandarRestaurants Team YS – “Gaurav Jain & Pallavi Gupta, Mast Kalandar: “In 3 years, we’re looking at 100 branches across India.”” – Your Story – March 31st 2011 - http://yourstory.com/2011/03/gaurav-jain-pallavi-gupta-mast-kalandar-in-3-years-were- looking-at-100-branches-across-india/
  • 56. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 56 Journals The Chartered Institute of Marketing, “Seven P’s”, CIM 2009 Continuum Learning Pte Ltd., “Customer Services_7Ps of Service”, CLPL 2011
  • 57. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 57 ANNEXURE
  • 58. Spring Leaf Retail Private Limited – Mast Kalandar 2014 Sadhu Vaswani Institute of Management Studies Pune Page 58