Service Marketing

December 2021 Examination

Q1. You are the owner of a retail chain. You currently have consumer durables, groceries
and private label clothing range for kids, men, and women. The price point is low and the
quality you offer is fantastic. You have more than eighty percent repeat customers. In most
of the customer surveys that you have conducted with market research agencies have
pointed this unique feature of your store. You have successfully operated your business in
Delhi. You have about 15 stores operating across the state. During the last five years, you
have spread your offerings to the other northern states, and you have seen a wonderful
response. You are pretty encouraged, and you decide to take this down south.

You have encouraged about twenty five percent of your best staff member to open the first
store in Bangalore. (With a salary hike) They are your top performers. The vacant
positions in the north will be filled up temporarily and the staff members deputed would be
called back after 3 years from the start of the operation. The store opens as
scheduled. The initial response is good, but within six months, you see a plethora of
complaints coming in and customers are unhappy with their overall experience. Your cash
counters seem to become empty with footfalls and profits coming down.

This comes to you as a big shock as you had not expected this to happen. You are unwilling
to give up and you need to understand why? Is it the mindset of the people, a consumer
whom you have never encountered before, or is it the issue of training your people and re
designing of your service offerings? But will you be able to turn this around?

Do you feel that there is a difference in consumer mindset in the South vis a vis the

North? Can you point some of them? What data do you need to reach to a conclusion and
what steps should you take to plug the footfalls? (10 Marks)
Answer 1.

Introduction

As a retail manager in this chain for more than six years, I have developed a deep connection
with the organization. The items I promote include durable items, groceries, and clothing for
children as well as adults. Running first became a part of my life in Delhi, India. As I mentioned
earlier, I received pretty detailed reviews regarding my product and service offerings. Having
built up this customer base right here, I am sure that I have a very solid future. I almost always
have repeat clients and almost 80% of my clients are repeat clients. I have increased my
enterprise in maximum of the areas of the state after receiving such remarkable feedbacks and
evaluations, and I have seen the profits soar. It is estimated that within the North area there are
fifteen different types of retail stores operating. The purchaser experience and their response are
overwhelming. Thinking about the growth, I decided to unfold and open a shop in Bangalore
with 25 of my pleasant staff. To start with, the answer became accurate, but I was flooded with
court cases and lousy patron opinions after the first six months. I used to be experiencing a
significant downfall in my career.

Concept and application

In the days before the recession, there was barely any income. Despite my best efforts, I was
unable to understand the purpose of what was going on. There was no way I was anticipating
this, and I was not prepared to wrap up my business in the South and go back to Delhi. So, I
decided to perceive wherein things went incorrect. Here, I'm able to present my study concerning
the North vs. purchaser behavior of South India.

To begin with, I couldn't discover any inaccuracy or fault inside the business and, consequently,
could not solve the hassle. However, I felt a significant distinction in the patron behavior within
the South. I've no longer faced so many complaints and doubts concerning my products and
services.

The internet helped me in the construction of a survey where I attempted to realize the demands
of the southern customers by doing some research. Door-to-door surveys and online surveys
were carried out. Because south of human beings is extra generation-pleasant, the reaction
became pretty gathered from the web surveys.
The consumers of North India are superior. They may be greater price-centric than high-quality-
centric. But pleasant is likewise a critical issue for them. They're quality-aware additionally look
for the high-quality offers and reductions on the goods. They are very stressful compared to the
customers of other states. People in North India are slow. As they are very popularity-aware,
they may be prone to shopping for high-quality, luxurious, long-lasting items and clothing.

From the articles and research on the net, it may be stated that the five southern states of India
are manner more urbanized than the opposite states. Consequently, they're economically
progressing each day. At the same time, the Southern humans are very hardworking,
experimenting, and tech-savvy. Certain factors influence the buying pattern of the southern
people. With every passing day, IT corporations are being set up in every corner of the states,
supplying a massive activity.

Additionally, they make contributions socially. Those are the certain aspects determining their
purchasing behavior. A web supply said that approximately 33% of the southern families belong
to the financially secured section of the society. In different states, almost 24% of the households
belong in those socio-economically higher strata. So, the Southern humans are more into
experimenting with their shopping for styles and shopping behavior for those factors. They
assume greater from the shops. The purchasers of the South are extra into online shopping than
those who prefer the stroll-in-store buying culture.

The reputation of someone nowadays is mainly determined by the possessions that they possess.
If you flaunt everything you are capable of, your reputation will improve more and more with
each passing day. In other words, consumers nowadays spend more money than they are saving
and pay interest on the extra money spent. People's daily efforts to make ends meet have become
increasingly dependent on their expenditures. In the eyes of society, a person's assets determine
what position he or she has in the society.

The example above is a perfect example of a consumer from the North who decides to buy a
refrigerator, the first place he will head to is the nearest store offering durable goods.

Conclusion

It is thought that the northern people tend to make decisions quickly and with a small amount of
experimentation. The families that these people may be of are well-off, and so they spend a large
amount of money on shopping for things. And the Southern people are very energetic and open
to experiments, so the competition is very high in the Southern market. After you grab the
market, you need to preserve that earnings and carrier stage on your customer because the
marketplace is flooded with budding marketers. First, they consider the client and proprietor
relationship. So, anything that takes place in this fridge, they can come to the shop and get it
constant. The accessibility is easy. They'll strive to buy at the lowest rate, taking benefit of the
hooked updating. At the same time, a southern purchaser will look inside the online purchase
apps for authentic and excellent fridge fashions. They may look for first-class deals, and those
careful studies earlier than buying will provide them with their preferred price. Then they may
order and, in the end, purchase the fridge. This study has helped me to rebuild my business.

Q2. You have worked in the industry for a decade, and you are now fed up with the boring
work environment around you. The entrepreneurial bug has bitten you and a food
business is in your mind. There are numerous challenges, however. In your city, the
working population is large enough to sustain the business, disposable incomes are high,
and you feel that there is a niche offering that needs to be created for your restaurant, for
example a Japanese or a Korean cuisine. The problem however with a

niche is adoption to local tastes, preferences, and the biggest challenge of whether customer
would be interested in them. The next big challenge would be for you to reach out to the
right set of customers. This might take you some time, and your biggest fear is that the
initial buzz that you may create at the start may not sustain after a point. Also, if you are
successful, there may be copycats coming in. You are therefore considering a second
alternative of ‘tiffin services’ to people around you. This may not have the glamour but will
make you cash bells ringing from day 1 if your product is right. There may not any need
for branding or the need to position yourself. It is a dilemma that you are facing.

How would the service offering be different in case of a restaurant vis a vis tiffin service?
(7Ps) and how would you plan to market the service offerings? (restaurant vis a vis tiffin
service) (10 Marks)
Answer 2.

Introduction

Since I've been working in this industry for quite some time, I have a lot of experience in it. A lot
of things are stagnating. My job lacked the excitement it once had. I have been completely
shattered by using this time. So, I have an idea about an alternative to deliver a few elements of
wish and pleasure into my existence. I was reincarnated in the form of my buried inner
entrepreneur who kept on driving me to do something new and challenging. Having thought of a
business idea for meals, I have developed a concept. Prior to setting up such a business, I might
need to do some work to preserve the good things in my life. As in what the clients need the
cuisines and dishes according to the locals, and the market opposition. In my location, the
working population is high, and the disposable earnings charge is likewise increased. Because of
this, I felt that giving customers something unique and providing more value was important in
order to catch their attention.

Concept and application

Throughout my years of studying and researching the food business, I have accumulated a lot of
knowledge. There are professionals as well as members of my family circle that have helped me.
As soon as the restaurant is up and running, I will be able to begin financing it. Throughout this
enterprise I have received assistance from the humans already working within it. With regards to
the setting of the restaurant and the surrounding area, I have already chalked out my plans.
Throughout this article, I intend to talk about how I intend to implement my project in an
effective manner, in calculating every step along the way.

Additionally, I have selected and made every association ready for the interior of the restaurant.
As this marketplace is in the form of growth and contributing a lot to the worldwide financial
system, I have got a couple of opponents and competitions all around. So, I have got an idea for
an alternative.

A ‘Tiffin carrier' can be my opportunity option for the restaurant. Even though this carrier does
not look so alluring, this can convey some cash to the house at the cease of the day. I used to be
afraid that if the clients I'm able to appeal to start with will no longer be my repeated clients, the
initial glam of my eating place might fade away. So, to hold my profits steady, I deliberate for
the 'Tiffin provider.'

That is a tech-savvy global now. So, digital advertising and marketing turned into my course of
marketing my eating place and 'Tiffin provider.' i have plans for both.

Restaurant:

There will be exclusive Korean and Japanese dishes served at the restaurant.

We would like the atmosphere to be one of peace and eco-friendliness.

There could be one-of-a-kind offers and reductions for the customers journeying the restaurant
for the first six months.

Those clients get a membership card from the eating place who will provide 'Tiffin services' too.

Clients can e-book the eating place for their special days with the meals and liquor provider—
special offers for the membership cardholders.

The membership cards are rechargeable. If you have food inside the restaurant, you may pay via
a card. The amount can be deducted from the stability on the card.

Tiffin offerings:

The other way we deliver meals is to use a domestic shipping carrier, which can be done through
our online app. Also, if the transport location is within a 1-kilometer radius, you are able to order
meals by simply calling us (on any day). We are able to provide the following services:

Home delivery of all kinds of restraint foods.

The dishes can be custom-designed according to the customer’s desire.

Pre-order is likewise time-honored for any event.

The club card facility is relevant for this carrier too.

There can be day-by-day customers like students and the operating folks that will order three
foods daily. So, homemade food is guaranteed.
For the sake of keeping the consumer base intact, those are the offerings that I am currently
willing to offer as of now. As an alternative, I no longer consider Tiffin to be a good alternative.
As a possible alternative, I would be willing to hold both my restaurant and Tiffin provider
simultaneously.

Conclusion

The services I plan to offer in order to seize and hold the prevailing customers are various, which
I will announce as soon as possible. My priority will be to make sure that the buyer has a good
experience. The plans which I have made are nearly interlinked. But I separated the staff for each
of my enterprise plans. The cooks are specific, and the crew who manipulate the account is
likewise divided. To begin with, I will start the commercial enterprise with the help of my
household and friends, and the cooking specialists, but in a while, with the aid of god's grace, if
the whole thing appears to work in keeping with the plan, I would hire humans to do the jobs.

The idea of membership cards in eating places and meals offerings is new. Before this,
membership playing cards might most effectively suggest for the golf equipment. If this method
works out and brings earnings for the employer, then masses of other parties inside the market
will reproduction my idea of the club cards.

In the beginning, I'd been considering using a 'Tiffin provider' as an alternative; however, as time
passed, I started considering this as an aspect of the restaurant business that could be done
similarly.

Q3. Trail Blazers academy is a coaching academy, providing training, coaching, and
counselling services for students. Their primary revenue source is from the coaching they
do for medical and JEE. Established a decade ago, it is now a well-known brand, but faces
sever competition from the crowded market of the coaching space. The quality of the
students passing out are well know and many candidates are able to crack the JEE and
medical exams. However, in the last couple of years, the company has tried to expand using
the franchise model. This was possibly the best model available. But with tremendous
amount of competition happening online and offline, the pricing model of the academy has
changed. The fees for the course are on the brochure but is charged variably. There are no
standardizations followed. Many of the franchisees charge whatever they want to,
essentially to maintain a minimum threshold of students flowing into the organisation.
Sometimes the center heads of the franchise, encourage existing students to bring in new
candidates, there by incentivizing them. Some of the hard negotiators are able to settle
down at a lower price point that what others are paying. In many cases, students were
allowed just with a token money with more than the usual EMIs. Everything seems to be as
per the flexibility of the center managers. While some of the franchises are happy, others
are not. The location of the center, number of enrollments drive the pricing. The parents
are unhappy with this mechanism and there are complaints floating in the social media
about Trail Blazers. The franchises are incentivized on the total revenue they add to the
parent group. Many of them therefore have started the recent practice of creating fake
candidates, thereby making themselves eligible for more incentives.

Trail Blazers have also realized that due to competitive pressure, they are unable to make
good margins in the business and wants to expand their offerings. They are now planning
to start a HR recruitment consulting firm. The CEO can drive this, because of his previous
experience in this area. He also has a team, which is capable enough. The CEO has invited
you, as a consultant. They are in a dilemma on whether they should use the Trail Blazers
brand name to the recruitment consulting firm or use a new name. Trail Blazers sound to
be a great name for the consulting firm and matches with the nature of work that they
intend to do. However, many of the other managers opine that these two businesses are
different and not related and therefore the brand extension is not suitable for the new
offerings. Even if they use the same name, how would they position themselves?

a. How do you price their services better? (5 Marks)

b. Is venturing into a new service offering a sensible proposition for Trail Blazers? What
are the potential benefits and challenges that you see as a consultant? (5 Marks)

Ans 3A.

Introduction:
It is not a surprise that there are numerous institutes where medical students and students from
the JEE can learn how to crack medical exams. As a result of its recognition and popularity
within the marketplace, it has been given the title of a perfect brand. There is also evidence that
college students passing out of this coaching center are doing relatively well on their college
entrance exams. In the city, they have numerous franchises that operate under this brand name.
In spite of this, this coaching institute business is one of the fastest growing businesses on the
market. There is so much opposition going on that the situation is totally tense.

Concept and application

Due to the high number of such institutes that are present in the marketplace, owners of new
franchises might have a difficult time deciding where to open their new locations. The pricing
model has been something that Trail Blazers have been having problems with. The franchisers
are opting for every feasible way to convey college students. Some franchises deliver incentives
to their students if they get different students to the institute. A lot is occurring within the
coaching centers for attracting students. Parents are elevating court cases against such
horrendous behaviors of the institute for price hikes and attracting college students.

The Pricing of the commercial education enterprise might be better if they serve a limited
number of students as of now, except for all kinds of wrong methods of attracting students and
the charge hike. If they need to return to the good books of the market again, then the pricing
must decrease, and incentives given to the scholars must at once forestall. Inside the initial days,
the business enterprise will face some economic problems of the path. However, once the
commercial enterprise starts strolling full-fledged, then the earnings and the price gets balanced.
Both the businesses will run efficiently.

Students have to subscribe with a positive quantity to get these offerings from the website. Also,
they can serve the students by hiring a non-public scholar counselor. Nearly every pupil faces
difficulty in deciding on the subjects and their career picks. So, if they risk, talk, and visit the
career counselors to be immensely useful, trailblazers can also charge for this. Counselors fixing
the determine-infant troubles can also be to be had. The parents regularly generally tend to
burden the pupil with their career selections. The students now and again aren't free to observe
whatever they need. They do not have the freedom to pick their profession. There are many
reasons why children are experiencing medical melancholy. The children's parents pressurize
them. Due to this fact, the suicide fee for most students may be extremely high, and as a result of
that, many students may commit suicide.

Conclusion

The role of parents as counselors is important to preserve the proper cordial relationship between
a child and his or her parents in the modern world. The students at each and every company have
the right to obtain professional guidance from their counselors. As an additional benefit,
collecting sales using this method is also a very effective way to generate income.

You can also generate your income by using other methods other than internet marketing.
Several incorrect methods will not be necessary if a business wishes to remain competitive in the
marketplace.

Ans 3B.

Introduction

There’s a burgeoning trend among coaching centers to train their students online, so like other
coaching centers in the market, they are exploring this option. If they decide to enter the market,
they could provide a service in which students could add their concerns and issues, and the
teachers from Trailblazers would supply the answers and solutions.

Concept and application

In my capacity as a consultant, I have given some suggestions regarding the future of revenues.
These ideas include online education, online problem solving with the help of subscribing to the
channel, and online professional counselling for students. It is important to note that the services
described above are not free. Additionally I have also requested that I be allowed to advise them
in the future on how to resolve the problems associated with parent-baby dating.

Students or youth are the faces of the country. We have to lead them on the proper course
without imposing and burdening them with our beliefs, dreams, and selections. They're separate
entities who can determine for themselves. All we will do is to offer them type phrases and
encouragement. The occurrence of so many issues has led to the beginning of a brand new
enterprise concept. The CEO has an idea of opening an HR recruitment firm as he has previous
experience in this subject. Now, there are two issues. First, the business enterprise needs to use
the identical logo call as "trailblazers" or use some other name for the brand new venture. The
agency has employed me as a representative. I can area my reviews, and then the control will do
something that suits them the pleasant.

As trail Blazers has a call in the market, the commercial enterprise's marketing could be easy
first of all. However, if the goodwill is all long past, a new call for the enterprise is always
encouraged. The HR recruitment business needs to now not be connected to any inadequate
evaluations of the trailblazers.

Conclusion

And regarding the use of the equal brand call in the new recruitment business, I have suggested
they first carry back the goodwill within the teaching enterprise and then attaching it with the
brand new employer. The recruitment enterprise shall face no hassle due to the past nuisances
created via the franchises of Trail Blazers.