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PRESENCE
Barista came to India over three years ago, with the vision of ushering in a
`coffee drinking revolution' in the country and redefining `pub hopping'. In just a little
over three years, Barista has created a space in not only the specialty coffee segment,
but in the lives of millions of satisfied customers across the country. At present, the
Barista coffee has !" #spresso Bars and #spresso $orners in %elhi, &oida, urgaon,(umbai, )olkata, $hennai, Bangalore, *yderabad, $handigarh, +anchkula, oa,
+une, Ahmedabad, ucknow, )anpur, -himla, udhiana, Baroda, &agpur and %ehra
%un making it one of the largest retailers of specialty and gourmet coffees in Asia
hile Barista started off with a clear strategy, it tried to spread too fast. As a result, it
spread itself thin. -o now they are doing consolidation instead of e/pansion, and
taking the business into a different phase. Barista is not on a hyper growth path and
they are readdressing the business at fundamental level. 0hey will be into
consolidation mode for an year.
About 1 Barista stores are in malls, the rest being standalones, !" in all. By 2""13
"4, Barista plans to have over !"" outlets across the country up from !" at present.
In the past year Barista has e/panded through tie3ups with major retail chains and
setting up outlets in their premises. Barista tapped large corporates by setting up#spresso bars at their premises, similar to the one at I$I$I5s at Bandra 3 )urla
comple/ in northwest (umbai. 0his move was spurred by huge business volumes
generated by its coffee bars in commercial comple/es Barista has tie3ups with +lanet
(, $rossword and the 0aj group of hotels for setting up #spresso corners within their
premises. And along with AB& Amro, Barista has introduced a concept called Ban
caf6 3 a caf6 in the bank premises.
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Instead of 7uantity and spread, Barista is concentrating on 7uality and focus8 major
step in this is relocation of outlets and e/iting non3starters. 0hey are going to e/it
unsustainable outlets. 9rom the locations currently, Barista will knock off about ".
0he unviable stores that B$$ proposes to shut down will be those from a combination
of metros and -#$ B and $ towns and cities. (ost of these will be standalone stores.
0hey want ratio of malls to increase against standalones. Barista appears to have its
pulse on the Indian consumer.
0he chain proposed to tap $lass I towns in markets where it is un3represented, for
e/ample, $entral India. By ne/t year, Barista is hopeful of operating through 221
#spresso Bars, against !" now. 9or starters, the coffee chain was going to smaller
towns. 0hey are moving the brand into new markets and smaller towns, and
e/panding to eastern markets such as Assam, :rissa and est Bengal. Barista plans to
add 2" new stores in this region.
Another change that has taken place at B$$ is that for the first time since the coffee
chain began operations in India, it is taking the franchise route to e/pand operations
instead of company owned ones. According to them the opportunity for growth in
this business is significant and cannot be fulfilled by internal resources alone, so they
decided to add franchising as one of the business formats actually the company wants
to raise money through franchising because its funds have dried up.
0he Barista concoctions will soon be available in places such as airlines as well as
some 0aj roup of hotels owned by the 0ata group. 0hey have already opened its
first Barista #spresso bar at 0aj %elhi. 0he company is talking to several large hotel
chains to set up shop in their premises, similar to what it is doing in the lobby
restaurants of select 0aj hotels. Barista also plans to set up coffee corners and
#spresso bars at the airport lounges managed by the 0aj roup of hotels ;part of the
0ata group companies
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0hrough the 0aj roup, 0ata has also been associated with airline catering. Barista is
in advanced stage of negotiations for in3flight catering with various national and
international airlines.
0he company is also talking to a number of petroleum companies, including IB+ and
Indian :il, to open off premises joints. +etrol retails like Indian :il and *industan
+etroleum are converting their retail outlets in metros into convenio stores with
restaurants, cyber cafes and shopping malls. Barista is targeting the same segment.
As part of its overseas e/pansion plans, the Barista30ata alliance plans to set shop in
(alaysia, :man, %ubai, Bahrain, #gypt, some #ast #uropean countries and parts ofAfrica. It plans to set up outlets in -outh Asia, (iddle #ast and #astern #urope in the
ne/t few months.
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CHAPTER-1
INTRODUCTION
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1.1 Introduction To The Topic
0he managementprocess through which goods and servicesmove from conceptto the
customer. It includes the coordinationof four elementscalled the = +'s of marketing>
;< Identification, selection and developmentof a product,
;2< %etermination of its price,
;!< -election of a distribution channelto reachthe customer'splace, and
;=< %evelopment and implementation of apromotional strategy.
9or e/ample, new Appleproducts are developed to include improved applications and
systems, are set at different prices depending on how much capability the customer
desires, and are sold inplaceswhere other Apple products are sold. In ordertopromote
the device, the companyfeatured its debut at tech eventsand is highly advertised on the
weband on television.
(arketingis based on thinking about thebusinessin termsof customer needsand their
satisfaction. (arketing differs from sellingbecause ;in the words of *arvard Business
-chool'sretiredprofessor of marketing 0heodore $. evitt< ?-elling concerns itself with
the tricks and techni7uesof getting people to e/changetheir cashfor your product. It is
not concerned with the values that the e/change is all about. And it does not, as
marketing invariable does, view the entire business process as consisting of a tightly
integrated effort to discover, create,arouse and satisfy customer needs.? In other words,marketing has less to do with getting customers to pay for your product as it does
developing a demandfor that product and fulfilling the customer's needs.
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ssdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/word.htmlhttp://www.businessdictionary.com/definition/Harvard-Business-School.htmlhttp://www.businessdictionary.com/definition/Harvard-Business-School.htmlhttp://www.businessdictionary.com/definition/retired.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/technique.htmlhttp://www.businessdictionary.com/definition/exchange.htmlhttp://www.businessdictionary.com/definition/cash.htmlhttp://www.businessdictionary.com/definition/values.htmlhttp://www.businessdictionary.com/definition/business-process.htmlhttp://www.businessdictionary.com/definition/create.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/pay.htmlhttp://www.businessdictionary.com/definition/developer.htmlhttp://www.businessdictionary.com/definition/demand.html 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General Adanta!e" o# $ar%etin!
An obvious advantage of marketing is the promotion of your business8 getting the
recognition and attention of your target audience across a wide ranging or specific
market.
oing hand3in3hand with this is the enhanced brand recognition. :ver time potential
customers and members of the public will begin to associate your logo and your brand
with your business.
#very business needs to @spend money to make money5. Investing in marketing is no
different. 0he most important advantage of marketing is therefore 7uite simply improving
the businesses profits by boosting sales.
0here are five competing concepts under which organiations can choose to operate their
business8 the production concept, the product concept, the selling concept, the marketing
concept, and the holistic marketing concept. 0he four components of holistic marketing
are relationship marketing, internal marketing, integrated marketing, and socially
responsive marketing.
0he set of engagements necessary for successful marketing management includes,capturing marketing insights, connecting with customers, building strong brands, shaping
the market offerings, delivering and communicating value , creating long3term growth,
and developing marketing strategies and plans.
I&portance o# $ar%etin!
(arketing promotes product awareness to the public
(arketing helps boost product sales
Builds company reputation
1.' O()ectie" O# Stud*
2
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0he main objective of the study is to know about the different marketing
strategies adopted by the Barista.
0o know about the e/pectation of the customers.
0o know about the position of the company in the market.
0o know about the competitors.
0o find out the customer satisfaction in industry that means to study whether the
customers are satisfied by the products and services provided or not.
0o conduct a study of various services provided by the company providers by
specifying the various factors on the basis of those we can check the satisfaction
level of the customers.
0o know and understand various strategies used by the service providers in order
to increase consumer satisfaction.
0o identify the customer response towards the industry.
0o promote the products and services of the industry.
-:0 analysis of the products and services offered in the company.
0o assess competitive strength and policies
0o estimate potential buying power
0o know customer acceptance
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1.+ ,iterature Reie
Business organiations are constantly seeking ways to enhance their performances in
order to compete actively and aggressively in the market. +rofit3seeking organiations
have long recognied the importance of creating value in the products and services they
offer to the customers, all in the common objective to deliver commercial goods
efficiently in order to keep the current customer3base satisfied. Aside from inculcating
loyalty among the members of the clients and customers of a business organiation,
companies are likewise aware of the need to widen and e/tend the reach of the
company5s products and services to new markets in order to increase its share on clients
and customers. -trategies, plans and techni7ues in the areas of operations,
communication and marketing, sales, supply chain, logistics, research and development,
performance measurements as well as social and corporate obligations and responsibility
are continuously improved all for the benefit of the target market. :nce companies
become successful in these organiational and managerial areas, sustained economic
development is envisioned. 0his literature review aims to present a criti7ue of e/isting,
published literatures that analyse the relationship between marketing strategies and the
firm5s performance.
*istorically, marketing strategy formulation is viewed as an antecedent to performance
outcomes ;ages 2"""
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;:rville and alker 2""8 0heodosio, eonidus, 2""!8 )otler, Armstrong, 2""C< while
Brodrechtova ;2""< e/plains that marketing strategy is a roadmap of how a firm assigns
its resource and relates to its environment and achieves corporate objective in order to
generate economic value and keep the firm ahead of its competitors. In laymen terms it is
to determine the nature, strength, direction, and interaction between the marketing mi/3
elements and the environmental factors in a particular situation ;i et al 2"""
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CHAPTER 'CO$PAN PRO/I,E
4
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'.1 0ARISTA IN INDIA
0he first Barista $offee bar in India was established in -eptember CCC in Banglore with
the aim of identifying growth opportunities in the coffee business. Increasing disposable
incomes and global trends in coffee indicated immense growth potential in this particular
segment8 this espresso bar was mainly used for understanding the market trends and
consumer behavior. After testing the concept and understanding the need of the
consumer, they realied that people in India were looking for a comfortable place to rela/
and unwind while sipping delicious coffee It was followed by the opening of second, but
more operative #spresso Bars in 9ebruary 2""" in &ew %elhi ;Fasant Fihar
$offee lovers seek a complete e/perience. :ne that combines intelligent positioning with
the right product mi/ and carefully designed cafes. In other words, customers seek an
?experiential lifestyle brand?. 9or that purpose the company needed a system that could
not only deliver great coffee and espresso bars, but one with the ability to scale up
operations 7uickly.
0he mission statement of Barista is Gwe are not in the coffee business serving people, but
in the people business, serving coffee.H implying, the way of serving the coffee is more
important rather than just selling the product.
Co&pan* Per#or&ance
Barista $offee is, perhaps, India5s fastest growing specialty coffee retail chain. It is
focused around building an e/periential lifestyle brand and providing its consumers a
comfortable place to rela/ and spend 7uality leisure time. Besides witnessing a consistent
increase in the footfalls in each of its stores, the brand has, since inception, been able to
generate a loyal base of consumers.
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Aard" And Reco!nition
According to the *industan times GBarista is the pioneer of coffee bars in the country, it
boasts of consistent 7uality and a lively atmosphere used as a hangout by the young and
trendy, tourists who wants their fi/ of caffeine and just about everybody else, it offers
sandwiches cakes, though it is their biscuits that go best with the coffee. 0hey also
have a generous selection of non3coffee beverages so you don5t have to be a coffee lover
to visit Barista.H
A huge shot in the arm and validation of the company5s efforts has been the recognition
given independently by BB$, 0he 0imes of India and Business -tandard as the @Brand of
the Jear5 in 2""2. Barista was also awarded the 0:+- award for -pecialty $offee
#/cellence by the -pecialty $offee Association of America ;-$AA
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0ARISTAS $AR2ET SHARES
Barista
Caf Coffee
Day
Indian Coffee
House
Others
Barista Caf Coffee Day Indian Coffee House Others
0
0ari"ta 3 4156 Ca#7 Co##ee Da* 3 +856 Indian Co##ee Hou"e 3 956 Other" 3 1:5
0oday Barista5s market share is around 41%of the whole coffee bar market.
;(arket -ie L Ks. 21" crores A firm not only faces competition from e/isting
companies in the industry but also potential entrants. If a new entrant is
successfully able to grab a foothold in the market, the slice of the pie gets reduced
for all the other companies as well. ith new players like -tarbucks, 0ata $offee,
loria Pean $af6 etc poised to make an entry8 Barista faces a potential threat from
new entrants into the market. 0he natural course of action is to establish high
entry barriers, by way of cost leadership, economies of scale, differentiated
personnel etc. Barista has managed to create a kind of an entry barrier by being
the stentrant into the market and reaping the benefits of being the first mover. By
the time the new entrants are able to gain a sieable foothold in the market.
Barista would already by a well3established player.
=+> Threat #ro& "u("titute"> -ubstitutes are firms that do not belong to the same
industry per se but address the same consumer need or want. 0hey also attempt to
satisfy the same consumer need as the other firms L though through a similar and
not same product offering. 9or Barista, the substitutes are Amorettos ;Puice Bar
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projecting coffee as its main product offering, been able to sustain its market
share against these substitutes
=4> Pre""ure #ro& "upplier";ith increasing bargaining power of suppliers, the firm
is forced to accept their terms and conditions. ith a strong supplier, the company
is compelled to accept the price and other terms as dictated by the supplier.
Barista5s largest material component is coffee. 0he supplies are regulated and
monitored by the coffee board. 0ill the time that Barista was associated with 0ata
$offee, threat from suppliers was not such a major issue. 0he ideal strategy for
Barista is to maintain strategic relationships with plantation owners and with the
coffee board. 0hey could take over or enter into long3term agreements with coffee
plantations to overcome supply bottlenecks.
=8> Increa"in! pre""ure" #ro& (u*er";ith the increasing power of consumer 3
both in terms of bargaining power as well as awareness e/ercise of choice, the
firm has to be in a position to respond to consumer needs and strive to satisfy the
consumer in a speedy, reliable and cost effective manner. By differentiating its
product offering, effective positioning and promotion, and cost leadership, Barista
has been able to retain a large share of the consumer5s mind and recall. It has the
first mover advantage and has emerged as the leader in the coffee bar category.
=
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'.4 S?OT ANA,SIS
Stren!th"
Well-known brand name
First to enter the market
Market in the growth stage
Positioned as an Italian brand
High quality products
Skilled and committed team
High visibility locations
ollaborations with big stores
Soothing ! com"orting environment
?ea%ne""e"
Distinct preference for tea
Overtly committed to expansion
Product price too expensive
Unavailability of food
Most outlets are on rent
Not targeting new segments aggressively enough
Opportunitie"
International market e#pansion
$aunch new products
Huge scope "or innovation in e#isting market
%ie up with Indian &il orp' ! association with Sterling In"otech
(ew locations ) airport* hotels* malls* national highways
Threat"
Strong competition
hanging trends
1
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Fluctuating co""ee prices
Indian customers+ price sensitivity overrides brand loyalty
Franchisee route o" e#pansion may lead to deterioration o" quality
'.8 CO$PETITI
Introduced new low priced beverages.
+rice cut resulted in 1E increase in walk3ins.
Barista also provides an informal ambience, games like +ictionary and
scrabble for customers.
#mphasis is on providing a hang out place where young people can sit and
chat without being disturbed.
:nly company which offers ""E pure Arabica $offee.
#ncouraging youth by slashing prices.
Introduced the concept of Bank caf6 ;$af6 in Bank premises
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Adopting a franchise route for e/pansion ;especially in offshore market such
as M.A.#. and -ri anka
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;!< +roduct %evelopment> hen the firm wishes to cater to the e/isting markets but
with a new and different product offering, it is called +roduct %evelopment
;=< %iversification> hen the company wants to enter into new products along with
new product offerings, it is called %iversification. It is the most e/treme and risky
of all growth strategies.
As far as Barista is concerned, it is following a mi/ture of (arket %evelopment and
+roduct %evelopment strategies. It is e/panding into newer markets and cities with the
same product range as well as coming up with newer and more innovative offerings for
the e/isting markets. It has come up with an e/clusive concept of a co##ee loun!eBin
-outh #/tension ;&ew %elhi
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Product
Anything that can be offered to a market for attention, ac7uisition, use, or consumption
that might satisfy a need or want is known as a product.
Barista is offering a -ervice.Barista !nsi"ers itse#$ n!t in a !$$ee %usiness t! ser&e
'e!'#e %ut in te 'e!'#es %usiness !$ ser&in* !$$ee. It promotes the concept of
neighborhood espresso bars. 0he total number of products in their menu is appro/imately
1".
Barista the brand is more important than just one product, coffee, and the aim is to deliver
value so that the customer chooses Barista as a cafe and not a place selling a cup of
coffee without any emotion involved.
PRODUCT
Among the products offered by Barista their coffee is the most popular one. $offee alone
contributes around /0%to the revenues earned by Barista. 0he most popular coffees are
cappuccino, caf6 latte and caf6 mocha.
TANGI0,E
0he physical attributesassembled in an identifiable
form to provide wants
satisfaction to consumers.
#.g.> Barista5s $offee, -nacks
INTANGI0,E
0he service, e/perience,
uniform, casual ambience
formed with friendly staff,
uniform, games, guitar andnow books form the intangible
products of Barista.
2"
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Product in Three ,eel"
Core Product; It means the fundamental service or benefits that the customer is
really buying.
0ARISTA CORE PRODUCT;Ex'eriene
Actual Product> A composite of the features and capabilities offered in a product,
7uality and durability, design and product styling, packaging and brand name.0ARISTA ACTUA, PRODUCT; C!$$ee
Au!&ented Product> It consists of additional consumer services and benefits i.e.
facilities above customer e/pectations.
0ARISTA AUG$ENTED PRODUCT;+u,e%!x- B!!,s!'- an" .uitar
CORE
ACTUA,
AUG$ENTED
2
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0ARISTAS NE? RANGE
Barista very recently has taken out their international coffee blend, which includes>
$uba3 the coffees under this are strong aroma based coffee.
#thiopia L under is the coffees are strong.
Brail3 the coffees offered under this is very light coffees.
0hey have recently introduced close to 2 new flavors of coffee
#spresso Italiano
(ocha 0ease
$aribbean $alypso
9lavored $appuccino ;*aelnut, Irish $ream, $innamon, 0iramisu 0he business related information and feedback is in respect of>
its business from and provide information on how much customer centric it is>
I provides 7uantitative information on > ;i< *ow many customers have
been lost ;ii< *ow much business has been lostT ;*ow much business
volume and profit, customer decay has been causedT
-atisfied customer acts as an e/tended marketing arm of the supplier.
A customer is unsatisfied when the supplier has either not come up his
e/pectation or honoured his commitment.
%ue to human psychology, an unsatisfied customer is more likely to
speak often on the subject than a satisfied customer. It is rightly said that a
single unsatisfied customer can used the effect of five satisfied customers.
:nly a portion of unsatisfied customers complain while the rest simply
switch to other competitors. 0hey are lost simply without the knowledge
of supplier.
oss of customer is loss of an opportunity and profitability.
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$ustomers satisfaction channelises the organisation resources to bridge
the gap between the supplier and customer.
2. $ustomer Kelated> 0he customer related information and feed back rela-es to the
variables like>
0he number of customers lost.
0he type of customers lost.
0he reasons for the loss of customers.
0he possible preventive measure to avoid customers loss.
0he value assignment by the customers to supplied product and service
rendered.
0he customer decisionRmaking variables and weightage given to
each variable.
0he customer5s needs and re7uirements.
0o make the supplier organisation more customer centric organisation
+. Supplier Related; 0he supplier related information and feedback is related to>
-upplier5s strengths and weakness as compared to his competitors.
-uppliers core competitors as perceived by the market for future
growth and prosperity of the supplier.
0o regain the position lost by knowing the e/act position.
!
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-upplier5s market standing and image.
0he customer5s perception of supplier
-uccess rate of the supplier in keeping customers satisfied.
=< $ompetitor Kelated> (easurement of customer satisfaction provides competitor
related information and feedback on>
0he business lost to the competitors its e/tent and impact.
0he strengths and weaknesses of different players or competition
0he studying of competitors3 the gap between the actuals and bench
marking.
1< +erformance Kelated> 0he information and feedback related performance is to do
with>
:pportunities open for improvement with the e/isting programme,
product and services.
0he details of actual cost of customerRturnover.
0he level of performance as perceived by the customers.
0he sharpenes of company5s competitive edge and its improvement for
better future.
Cu"to&er Sati"#action $ea"ure&ent $ethod"
!C
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0he methods of measurement of consumer satisfaction should cover the basic areas
namely, identification of customer needs, customer value fi/ing on factors, suppliers and
competitors, benchRmark, variations on deviations between the customers e/pectation
and supplier5s achievement and the variation between supplier5s achievement and the
bench mark. 0here are number of direct and indirect methods of measure customer
satisfaction having their own sets of merits and demerits.
The direct $ethod";
0he most commonly used direct methods are3 front line agencies, oneRtoRone meeting.
complaint or appreciation letter, customer meet and customer survey.
The Indirect $ethod";
0he indirect methods that are most important ones, are two namely, customers complaints
and customer loyalty.
$ea"ure" o# Cu"to&er Sati"#action
0here are basically three measures of consumer satisfaction which are outlined as under>
< $ustomer satisfaction inde/> $ustomer -atisfaction inde/ ;$-I< is the measure of
overall satisfaction the customer is getting from the supplier in meeting his
e/pectations. 0his measure is e/pressed in the ratio of two variables and can beR
CSI;0otal marks obtained by the supplier based on customer feedback> 0otal
marks e/pected by the customer for supplier to obtain $-I helps the supplier to
trace how much he is able to come closer to meet the customer5s needs and
e/pectations. It is a performance measuring parameter by the organisations for
measuring the workforce effectiveness. $ompanies can also use this inde/ for the
overall monitoring of their progress in becoming customer3centric.
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#very organisation wants that its class of customers is to be one which is satisfied. 0hat
is, consumer e/pectations are marked by product and service 7uality. *owever, all
customers can not be satisfied in toto. *owever, it is important to know as to why the
customer dissatisfaction prevails. It is obviously on account of discrepant e/pectations
and realisations. It is e7ually true that the nature of e/pectations is ambiguous. 0hese
situations of ambiguity occur in different ways. 0hese can be>
< ack of e/perience with the e/isting product> 0hus, when a customer is going in
for $% writer, he may not be having e/act picture in mind as to what to e/pect.
0his happens because it is his first e/perience or encounter in buying $% writer.
2< 0he product in 7uestion may be new or an innovation> 0he customer may he
marketing for the first time on on3line say onRline banking or undergoing laser
eyeRsurgery.
!< Fariation in 7uality of service> In case of tailors all don5t cut and stitch the same
style or way nor the same tailor performs the same way at different times.
=< Absence of service while making purchaseRdecision> 9or instance while placing
orders over the telephone for in home teleshopping. the service may not be
physically preseIt.
1< #/pectations built up due to comparisons> It is usual that a product is udged in
comparison with some standard or criterian, say discription on a leaflet or use of a
similar product by one5s friend or neighbour or one5s own e/perience with a
similar product.
,eel o# Con"u&er Di""ati"#action
0he levels of dissatisfaction are four as e/plained by e/perts.
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may prevent dissatisfaction but may not create satisfaction. 9acilitating factors cause
satisfaction only when inhibition is not there. 0he role of inhibition and facilitation is
very clear from the following diagram.
;3 A0IF#< ;W +:-I0IF# X -upport service or advice pronsion if called for .X +rompt
replacement or refund, if necessary X A simple and smooth complaint forward procedure
X #fficient repair and maintenance service X #fficient and effective consumer follow up
process.
It is evident from the above elucidation that customer satisfaction stretches beyond core
product or service offering. *ence, the marketers are to start by attempting to understand
the elements that together decide the consumer satisfaction levels only then, list the
elements in proper and logical se7uence so as to identify as to what is to be done to
increase customer satisfaction level. 0his is possible only when the marketers design a
system that facilitates interaction with their customers. 0hese interactions will prove
e7ually important as the 7uality of the core product or service offered by the company in
the long run. 0he steps that are to be taken to enhance consumer satisfaction can be>
1> Conduct Re!ular Re"earch; Kegular research is a must to keep track of the
changing levels of customer satisfaction. It is market research that gives e/cellent
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clues to the firm about what the present and prospective customers think of
marketers product, product competition. *istory is full of evidences where the
biggest companies were thrown to the winds as they totally forgotten the
customers. 0hus, $olgate +amolive having engaged highest market share upto
lCD"s, did not bother about consumers. -uddenly in C"s and CC", the
competitors made their way. Again, in 2"""5s has come back by remembering its
customers. hat is true of $olgate is true of 9ord (otor company. Kegular
researches enable the marketers to keep at best of changing consumer levels. 0hat
is why, automobile makes are mailing customer satisfaction surveys form to their
new buyers once after two months they bought the car and after eighteen months
again, they can get similar like levels of satisfaction from dealers at definite time
interval. 0he point is, don5t sell to forget the customer.
'> Cu"to&er /eed(ac%; (ost of the companies are endowing their customers to
give feed back and using this data as the means of maintaining their contact and
dialogue. 0his feed hack is about the company products and the e/tended
services. 0his goes on records nicely analysed and helps in solving the problems
faced by the consumers right in time. 0he feedback forms are sent to the
customers asking relevant 7uestions as to the productsQs bought, the 7uality of
service rendered and so on. :nce the feedback is analysed. it helps in framing
marketing strategies.
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method you follow is not important. hat is more important is, that it adds value
to the customer.
=< Create Di"tri(ution Euit*;-hrewd marketers have realised that with greater
availability of goods which are close substitutes to competing brands, having
good distribution supplyR chain can actually prove to be the differentiating factor
in deciding customer value satisfaction and loyalty too. hile it is easier for
companies to match product technologies and prices, it will not be easier to
duplicate an effective distribution system offering a valueRchain of 7uality
services at the same time. 0oday, the companies are out to enhance customer
satisfaction and value by increasing their distribution e7uity by monitoring and
sustaining the 7uality of their product till it reaches the door step of a customer.0hus, Fideocon International has built its own fleet of carriers to move electronic
products dust free. * conducts two transit tests to ensure that products reach
the outlet infact and is stored securely in warehouse. Keliance petrol bunks on
highways of India provide not only diesel, petrol and parts but also supply
purified and cooled water with backed up bathroom and toilet facilities. :f late,
they are having restaurant facilities too. As the market gets tougher by brands, it is
the strong distributing e7uity that will determine the consumer satisfaction in the
long run.
1. Plan Con"u&er 0ene#itin! Pro&otion";0he promotions that deliver value to
customers well help in building customer support and hence, satisfaction. 0he
promotions must match the needs of different types of customers. 0he overall
impact should be to attack and cover ma/imum number of customers. 9or those
who are brand switchers, bargain deals lure them. In case of regular buyers lower
prices in general and seasons off will work wonders. :ffer lesser prices to wintheir confidence that in the days of inflation you are really helping them. 0he
prospective customers who are postponing the purchases as is the case with
consumer durables grant them different types of discounts and relates and also
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ero interest installment purchases. 9or encouraging new brand or product, give it
as a sample. henever it is possible in case of consumer non durables3 along with
established brand. 0his serves two purposes of communication and the
introduction of new product. -alesRpromotion modes will help a lot. -ince we
too are to woo consumers, consumer promotions play significant role.
4. Deelop Cu"to&er Sati"#action Oriented Culture;#very organisation should
strive to make customer satisfaction its work culture. %evelopment of such a
culture should percolate from the top management through its initiative, thinking,
direction and action. 0he development of this workRculture should not remain
only a lofty objective. 0he management has to train the employees, develop skills,
change their level of knowledge and attitude. 0he organisation is to ensure that itssystems on 7uality, performance, services and complaint redressal are designed to
achieve e/cellence and consumer satisfaction. -ystem have as much role to play
is development of organisational culture as human being and their habits. In fact,
systems are to organisation what habits are to human beings.
D. E##ectie Co&plaint $ana!e&ent; In spite of best efforts of the supplier in
ensuring that he supplies 7uality goods and provides efficient service and puts the
customer on top of his priority list, he may frustrate the customer by not coming
up to his e/pectatiom,. resulting in complaints. A compliant is a positive
indication that though the customer is insatised. he may continue to remain with
the supplier. 0he vendor must welcome complaints. $omplaints are like early
warning systems and indicate customer dissatisfaction. If not handled properly. or
given due attention or discouraged, it may lead to loss of customer himself or
herself. If handled properly, they result in enhanced customer satisfaction and
loyalty. It may als and to the mutual understanding e/isting and may furtherstrengthen the relationship bond between the vendor and the customer. $ustomer
complaints bring benefits or merits to the supplier in the forms of reliable
feedback, deficiency identification, source of identifying generic defects bring
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home customer needs and preceptions and above all a source of market trend and
behaviour. 9ast and comprehensive resolution of complaints helps in growth of
business and custoier retention. It adds value to the image of the company. 0he
company should develop and use good complaint management system. ood
complaint management system is one which is singleRwindow system,
responsive, maintains spare sorting and classifying comple/es. 9ollow up of
complaint redressed has a time schedule, analytical base.
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CHAPTER-+
RESEARCH
$ETHODO,OG
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STATE$ENT A0OUT THE PRO0,E$
0he project title G(AK)#0I& -0KA0#I#- A&% $M-0:(#K -A0I-9A$0I:&
A0 BAKI-0AH describes the different strategies adopted by BAKI-0A to retain their
customers.
As we all know that customers are the basic re7uirement for running a business. -ince
this is the competitive era and there is no monopoly in any sector e/cept some industries
like nuclear power industry. -o every industry wants to retain their customers. In my
project I am going to find out the different strategies adopted by the food chain to retain
their customers.
SCOPE O/ THE STUD
As the targetQsample in my study is service providers as well as customers and I have
collected the data as responses from them. As the overall data consists of 1"" samples
which is actually very less in respect of the huge base of the food chain industry so the
study can be done further to view the true picture. 0he scope of the study is that by
analying the responses of the customers it is 7uite easy to understand the current market
structure of the food chain industry market and also helps in understanding the buyingbehavior of customers i.e. their preferences, taste, analying main reasons for visiting or
non3visiting in a particular chain. 0his study can also be e/tended to various levels like
testing of new products, services, business trends and sales forecasting etc.
SIGNI/ICANCE O/ THE STUD;-
0he significance of the study is that>3
It ascertains the position of a company in a specific industry
It indicates the present and future trends of the industry and thus points out how
the company5s affairs are to be managed.
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It helps in the development and introduction of new products and services
0he distribution;home delivery < of marketable goods
0he sie, nature and organiations of the sales
0he demand creation activities
It helps in assessing and enhancing the effectiveness of sales management
It can reduce the risk involved in marketing decisions.
RESEARCH $ETHODO,OG
0here are a lot of research methodologies. -ome of them are as follows>3
+anel research
(arket survey
Kesearch through internet
$onjoint analysis
(ulti3dimensional scaling
Oualitative research
But the research methodology chosen by me is -urvey (ethod.
0he purpose of the methodology section in the report making is to describe
research process that is followed while doing the main portion. 0his would
however include the research design, sampling, procedure and data collection
method. 0he methodology followed by the researcher ;myself
+rimary data
-econdary data
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Pri&ar* data;
+rimary data is the data which is collected by the investigator himself for a specific study.
0he primary data is generally original in nature. An investigator has to visit the market to
get the primary data.
Secondar* data;-
hen an investigator uses the data that has bee already collected by others is called
secondary data. 0he secondary data are collected from journals, reports, newspapers,
internet, books, magaines and various other sources.
A(out The Re"earch $ethodolo!*
%ata sources +rimary and secondary sources both
Kesearch approach -urvey method
Kesearch instrument Ouestionnaire
0ype of 7uestions :pen ended
-ample sie "" samples ;appro/