service mkt ppt1
TRANSCRIPT
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The 7Ps
ofService Organization
By:Nishant
Kumar(MBA/4526/09)Rajesh (MBA/4532/09)Ankita
Singh(MBA/4557/09)Abhinav
Kumar(MBA/4559/09Baban(MBA/4564/09)
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Service Definition
A Service is an act ofperformance offered by oneparty to another. Although theprocess may be tied to a physicalproduct, the performance istransitory, often intangible in
nature and does not normallyresult in ownership of any of thefactors of production.
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Product
Price
Physical
Evidence
PromotionPlace
Process
People
The 7 Ps of ServicesMarketing
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PRODUCT A bundle of benefits.
Aimed at customers need fulfillment
Aimed at value creation ,product offeringmust incorporate three key components-
1.Core product-solving benefits thatcustomers seek.
2.Supplementary services-these augment thecore product, both facilitating its use &enhancing its value &appeal.
3.Delivery processes-how ,nature ofcustomers role in delivery process , howlong delivery lasts , style, etc.
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COR
E
CONSULT
AT
ION
INFO
RMATI
ON
HOSP
ITAL
ITY
SAFEK
EEP
ING
PAYM
ENT
EXCEP
TIO
NS
ORDER
TAKING
BILLING
The Flower Of Service : Core productsurrounded by cluster of supplementaryservices.
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Price
Pricing issues
How much should be charged for this service?
How sensitive are customers to various prices?
What prices are charged by competitors? What discount(S)should be offered form basic
prices?
Are psychological pricing point customarily used ?
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What should be the basis ofpricing?
Execution of specific task
Admission to a service facility Units of time Percentage commission on the value of
the transaction Physical resources consumed Geographical distance covered Weight or size of object serviced
Should each service element be billedindependently? Should a single price be charged for a
bundled package?
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communicated to the target
market?
Through what communication medium?
Advertising
SignageElectronic display
Salespeople
Customer service personnel
What message content i.e. how much emphasisshould be placed on price?
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PlaceBasic Channel Decisions
Do we use direct or indirect channels.
Single or multiple channels.
Cumulative length of the multiple channels.
Types of intermediary.
Number of intermediaries at each level.
Which companies as intermediaries to avoid intrachannelconflict.
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Channel Intermediaries
Wholesalers
Agent
Retailer
Internet
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PROMOTION5Ws Model of Promotion
Who is the our target audience?
What do we need to communicate and achieve?
How do we communicate this?
Where should we communicate this?
When do the communications need to take place?
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Personalcommunications
Advertising Salespromotions
Publicityand publicrelations
Instructionalmaterials
Corporatedesign
Selling Broadcast Sampling Pressreleases
Websites Signage
Customerservice
Print Coupons Pressconferences
Manual Interiordecor
Training Internet Gifts Specialevents
Broachers vehicles
Telemarketing
Outdoor Sign uprebates
Sponsorship
Video/audiocassettes,cd rom,software
Equipment,Stationary
Word ofmouth
Direct mall Pricepromotions
Tradeshowsexhibitions
Vice mail Uniform
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PROCESS
Ultimately, only one thing really matters inservice encounters- the customers perception ofwhat occurred.
-RICHARD B.CHASE
Processes-architecture of services, describingthe method &sequence in which service operatingsystem works & how they link together to createthe service experiences & outcomes that
customer will value.
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SERVICE PROCESS REDESIGN
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Eliminates storelocationlimitations
Expandscustomer baseDifferentiatescompany
DifferentiatescompanyAids customerretentionIncreases per
capita service useImprovesemployeesatisfaction
Increasesroductivit
Direct service[servicedelivered to
the customerslocation]
Bundledservice[combinesmultipleservice into apackage]
Physical
service[manipu
IncreasesconvenienceImproves
access
IncreasesconvenienceCustomizesservice
Increasesconvenience
Cultivates
Ph i l
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PhysicalEvidence
Packaging.
Internet/web pages.Paperwork (such as invoices, tickets and despatchnotes).
Brochures.
Furnishings.Signage (such as those on aircraft and vehicles).
Uniforms.
Business cards.
The building itself (such as prestigious offices orscenic headquarters).
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PEOPLE Many services depend on direct interaction between
customers and a firms employees. The nature ofthese interactions ,such as getting a haircut or talkingto call centre staff strongly influences the customersperception of service quality is often assessed basedon customer s interaction with front-line staff ,andsuccessful service firm devote significant effort torecruiting, training and motivating these employees.
The most important of all Ps.
Can meet the challenge by following-
Hire the right people Identify the best candidate
Train service employees actively
Build high performance service delivery teams
Motivate and energize people
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It was in the golden soil of Chikmagalur that a traditional familyowned a few acres of coffee estates, which yielded rich coffeebeans. Soon Amalgamated Bean Coffee Trading CompanyLimited, popularly known as Coffee Day was formed. With a richcoffee growing tradition since 1875 behind it . Coffee Day beganexporting coffee to the connoisseurs across USA, Europe &Japan. In the calendar year 2000, Coffee Day exported more than27000 tones of coffee valued at US$ 60 m .
Coffee Day has 48 agents and 50 collecting depots.
Its two curing works at Chikmagalur and Hassan cureover 70,000 tones of coffee per annum, the largest in thecountry.
Coffee Day has a well-equipped roasting unit catering to
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Sub brands under Caf CoffeeDay
Coffee Day - Fresh & Ground
Caf Coffee Day
Coffee Day Vending
Coffee Day Xpress
Coffee Day Exports
Coffee Day - Perfect
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Product
Its product mix comprises of products thatappeal to indian coffee and snack lovers.
They grow the coffee they serve.
Eatables like samosa, biryani, masala sandwich,tikka sandwich, trufle etc.
Merchendising includes Funky t-shirts, caps etc.
The best selling item in summer is frappe, which
is coffee and ice cream blended together. Theyoung people favor it. In winter it is cappuccino.
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Price Cater to the segment within the age group of 15-
29
Price for a cup of coffee ranges from Rs.45 to Rs80
there has been only minor changes in the pricingpolicy of Caf Coffee Day. The changes havebeen more due to the government taxes than any
thing else
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Place
213 cafes in all major cities in India.
located in High Street/ FamilyEntertainment Centers.
Near colleges
Near gas stations
P ti
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Promotion Caf Coffee Day held a contest around a
very popular programme on Zee EnglishcalledFriends. All the six lead characters areshown often visiting a coffee shop and a lotof youth like watching the programme.
They have tied up with Channel [V]'s GetGorgeous contest.
They have also done promotion for HistoryChannel, where they have run promotion forHollywood Heroes. They had asked a fewquestion and a lucky winner won a trip to
Hollywood.
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Continued.
Involved in ticket sales of Enrique ,WWE,Elton John, and Bryan Adams ticket sales.
They have been a part of movies like : Bas Yun Hi
Khakee Main Hoon Na Kyun Ho Gaya Na Mujhse Shaadi Karoge Lucky Socha Na Tha And a lot of Telegu & Tamil movies
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Sales PromotionCaf coffee day has been a very promisinginitiator than campared to its competitors forsales promotion like
Giving away Gifts during occasions egvalentine day
Offering Coupons Caf Citizen card which
allows regular members to avail discounts upto 20% and become a member
after a purchase amount of upto 2000 rs Sugar free campaign which was mainly done to
spread
awareness of staying healthy and fit by usingthe sugar free sachets
Discounts during festive times to member
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Process The order process at Caf Coffee Day is
based on self-service
They have a flexible delivery process, wherethey wait for some time for the customer to
pick up the order but if the customer takestoo long then the order is delivered on histable.
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Physical Evidence
Logo, Colors, Images
The Caf Coffee Day Logo
Dcor & Architecture
Literature
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People
People at Caf Coffee Day believe thatPeople are hired for what they know butfiredfor how they behave.
Motivation and personal skill are laidemphasize upon.
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Spa Industry
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NATURALS UNISEX SALON & SPA
46 Salons in South Asia and 4 getting
operational every month Most happening chain in India
Unisex salon is a concept popularized
by Naturals and has today become thefastest growingsalon chain in the country
equipment and products they use are ofpremium quality and thebeauty care specialists are the experts
in the industry
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Marketing Mix of Naturals Unisex salon
Product
Hair cut for men, women and children
Shaving, trimming
Facials, bleaching
Massage
Spa
Manicure
Pedicure
Waxing and threading
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Price
Naturals follow premium pricing strategy
Hair cut for men Rs 130 +tax Hair cut for women Rs 350 -700+tax
Facials ranges from Rs 200- 2500
Bride makeup costs Rs 7000+tax Shaving Rs 50+tax
Spa Rs 1500+tax
Hair coloring ranges Rs 700-1500+tax Hair Straightening Rs 1500-3500+tax
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Place
46 outlets in south asia
Mainly focuses on south indianmarket
Leading salon in Tamil Nadu
Situated in all metros of south IndiaChennai, Hyderabad, Bangalore.
30 outlets in Chennai alone and 4 in
Coimbatore , started in Pune as well
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PromotionNatural does two types of Promotion
1. Above the line Newspaper
TV
Magazines
Radio
2. Below the line Sponser college functions
Doctors day to attract students and working people attention
Naturals often give Gift vouchers and discount coupons to itscustomers.
Proces
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Process They provide service at customers
location too in case of marriage andother such events.
The blades are used only once and are
sterilized. The cosmetics used are of premium
quality.
Customized service. Packages can bealtered according to customers choice.
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People
Naturals have trained and skilled
employees They create a rapport with their
customers, by interacting with them
often, giving tips,being polite with them
A feel good experience is for sure
from naturals salon.
Physical
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PhysicalEvidence Naturals salons are well designed and air-
conditioned. They have a pleasing environment, nice
interior decoration which looks rich.
There is a waiters hall for those whoaccompany the customers which is fullyfurnished.
Many magazines are there for thecustomers to read.
The place is very clean and tidy.
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Conclusion
The array of strategic toolsavailable to service marketerstends to be broader than
commonly found in marketing ofmanufacturing goods. With thehuman element attached to
services it certainly requiresmore tools.
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Thank You