Project Report

On

“Study of a Service Organization”

STUDY OF SERVICE DELIVERY, IDENTIFICATION OF KEY ISSUES &

CRITICAL EVALUATION OF

Subject: - “SERVICE MARKETING”

Submitted to

“Prof. Rajiv Kumra”

INDIAN INSTITUTE OF MANAGEMENT INDORE

Name of the team: Hyderabad Nawabi’s

Name of the Students

Bindu Rathore

Rajeshwar Tanikella

Gelvi Kiran

Manoj Kumar

Samrat Navneet

Acknowledgement:

We would like to thank Prof. Rajeev Kumra, Faculty, Services Marketing, IIM Indore, for

giving us an opportunity to do the project on Services Marketing. We would also like to

thank Mr.Abhay Deshpnade ,CEO, Reasoning global e Applicatrions ltd,Hyderabad , for

spending his valuable time and giving us valuable insights on Reasoning , Key 2webitech

and Internet Marketing Industry as a whole.

Table of Contents

1. Objective ........................................................................... 4

2. Methods used for study: .......................................................... 5

3. Introduction- About Reasoning Global e Applications ltd. ....................... 6

4. Identification of Need & Opportunity ............................................ 8

6. Proposed Strategy or Plan ....................................................... 12

7. Ecommerce Solution: ............................................................ 14

8. Customer Loyalty Programs ..................................................... 15

9. Internet Marketing Services ..................................................... 16

10. Reasoning Portfolio of Clients ................................................. 19

11. Value Proposition to its clients ................................................ 20

12. Human Resource Management ................................................ 22

13. Performance parameters for Customer Satisfaction .......................... 25

14. Key Issues in Service Delivery: Service Gap Analysis .......................... 26

15. Reasons for Service Delivery Gap ............................................ 27

16. Application of service Marketing Strategies & Concepts ..................... 28

17. Conclusions ..................................................................... 30

1. Objective

This Project report, broadly, has been designed to familiarize with the characteristics of services in

Reasoning Global e Applications Ltd, their implications on design and delivery, and highlighting the

role of marketing, human resources and operations for sustainable competitive advantage for

Reasoning subsidiary Key2Webitech.

This report is not a pure description of a Reasoning Global e Applications Ltd, but involves critical

evaluation and/or identification of key issues. This report uses the concepts evolved during the

course, uses them where appropriate. This report tries to address the following.

The objectives of the project study are as follows:

� To do a service delivery study & analysis of Reasoning Global e Applications Ltd.

� To analyze the customers of Reasoning Global e Applications Ltd.

� To do a study and analysis of service positioning by Reasoning Global e Applications Ltd in the

competitive market, study customer satisfaction, study and analyze human resource

management.

� To study and evaluate the service processes design and the performance measurement and

management.

� To study and evaluate the customer value provided by Reasoning Global e Applications Ltd

� To identify and evaluate the key issues in the service delivery.

� To evaluate the reasons for the existence of service delivery gap.

� To use and apply the concepts of ‘Service Marketing’ to analyze and minimize

the service delivery gap by doing ‘Gap Analysis’.

� To analyze and evaluate the financial implications of improving the services.

2. Methods used for study:

1) PRIMARY METHOD:

By interviewing and interacting with management and employees and friends working at

Reasoning Global e Applications Ltd..

2) SECONDARY METHOD:

By use of companies official website and other media’s of communication used by the

Company like newspapers, company brochure etc.

3. Introduction- About Reasoning Global e Applications ltd.

Reasoning is a technology strategist and innovator of e-business solutions offering

customized web & mobile based solutions to small, medium & large scale retail

companies. Headquartered in Hyderabad, India, Reasoning conceptualises, designs and

develops sophisticated e-business solutions that help companies achieve success and

optimise growth.

Technology enabled multi channel marketing expands the reach of manufacturers in the

market and builds a constant line of customer rapport, which erases the distance between

manufacturers and customers and magnifies the brand image and multiplies the sales.

MartJack’s innovative and dynamic e retailing solutions are breaking the barriers between

manufacturers and customers, taking the retailing to the new heights by incorporating

multi channel online marketing solutions. Superior brand positioning, panoramic product

visibility with product specifications and instant online accessibility make sure the

customers get the accurate product information they need for reaching on the spot

"purchase decision".

The products and services are targeted at manufacturers, retailers and end customers

Reasoning is well positioned in the marketplace, has a strong solution offering with an

excellent management and investment team. The complete solution shall be the first of its

kind and leading edge within India, hence there are no direct domestic market

competition.

Globally yokel.com, slifter.com, froogle.com, shoplocal.com can be major direct

competitors as well as other web based emulators and portals who will imitate the

business strategy.

Reasoning Products and Services Portfolio

MartJack is an enabler platform that helps retailers in setting up their

physical store on to the internet and mobile within minutes with real-time product

information like Product price, Availability, Product features, in other words Martjack

makes retailers store searchable from Internet and Mobile by integration the POS or ERP. It

also helps them in archiving more effective corporate and ecommerce sales. MartJack

helps Retailers reach out to EVERY possible consumer from the Web and Mobile and

harness to their touch points.

Through ebhav, we help people decide what to buy and where to buy. We strive to create

a vertical approach, which enables shoppers to research local product availability prior to

purchasing offline by creating and offering them a smaller, creative and more relevant

data set, for a more productive consumer experience in the offline shopping.

mBhav is a phone-based Local product search engine for consumers to search for products

available at nearest store offline (Local stores) from anywhere, anytime, before making an

in-store purchase. mBhav comparison services make more sense with its location-

dependent capabilities. mBhav aims basically at shoppers who are already in the stores

considering/taking a purchase decision. Millions mobile users would have instant access to

product information from anywhere and anytime before making an in-store purchase

4. Identification of Need & Opportunity

Current Scenario:

In today's competitive environment, retail trade has become more customer oriented and product

driven. With changing trends in consumer behavior and shopping patterns, Manufacturer and

Organized retail chains are in need of multi channel marketing approach to enhance shopping

experience and to increase sales.

The research shows the changing trends in shopping and buying patterns. Shoppers would be

interested to find information about products, prices, availability and offers for a purchase

decision, which usually happens online, but prefer to purchase offline.

The Internet has opened up a new method of communication with users, 74 % researches on

Internet happen for local products and service

Research study by IAMAI found that impact of online research on offline sales is immense.

Customer research shows that ever-increasing internet awareness and dispersion has caused set of

purchase decisions happen online by browsing product related details but buying happens offline.

What does an online consumer search for?

Source: Internet & Mobile Association of India

Opportunity:

Massive opportunities in increase of sales by tapping sales prospects of online population of 50

million internet users and 300 million mobile users which is still untapped.

Indian Retailers and can increase sales by driving traffic from internet to physical stores by

providing information on product, available brands, prices, promotional offers, and discounts to

all its prospect customers across internet.

Multi Channel Methodology to stay ahead of competition

5. The service positioning by Reasoning Global e Applications Ltd

In today’s world, the brand which reaches its target customers by a finger touch and in

fraction of a second would be the market leader. The internet and Mobile have opened up

a new method of communicating with users

� 85% of online shoppers globally use internet to do research on product and pricing

BEFORE buying offline

� 74 % of the search on Internet happens for Local products and services.

� Shopping Search on Mobile is rapidly becoming a logical choice for consumers

� People want quick, brief and local data set for instant but informed decision

� Internet users expected to touch 100 million people by the end of 2009,

� Mobile users in India would cross 300 million by 2008

The Problems

� Most of the retailer in India does not have strong web presence.

� No tool available for the retailers to create there effective internet and mobile

presence without losing their focus and without high cost and complications

� No tool available to create an integrated market place to provide information which

combines both offline and online, search capabilities

� None of the mobile VAS providers can provide effective, quick, brief and local data

set for instant but informed decision making

Convert the online shopper to in-store buyer

� Multi channel marketing and sales methodology to consolidate Brand and enhance

Market Penetration

� Webstores to all franchise stores for local presence for local search results

� Enhance LOCAL sales through unique domain names, digital Maps with detailed

directions to local stores for consumer ease, and updated inventory through POS

Integration

� Their solutions offer a concentrated marketing effort to establish the brand and

reach millions of customers, by using Internet and Mobile as customer touch points

Strategic approach

� Provide a technology based e-Enabler platform of Mart Jack, a complete end to end

solution to facilitate the retail Franchise stores online of the clients.

� Comprehensive online solution to integrate the client brands, products, store information

in different geographic locations with centralized access to reach targeted customers at all

localized regions

6. Proposed Strategy or Plan

Reasoning Service objective is to provide excellent visibility for our clients and its products on the

Internet through Central Product Web Stores and channel Web Stores and drive customers to

nearest outlets or physical stores via Internet and Mobile.

The business process includes:

1. Online content to manage the customer online business

2. Showcase client company products and services

3. Product Comparison of client products

4. Limit / Change / Append / Edit the attribute list

5. Web Stores for client franchise network

6. Ecommerce webstore

7. Brand Strengthening

8. Brand Engagement

9. Effective online sales

10. Web analytics to enhance consumer research

E Solutions:

� MartJack –e Franchise for online franchise stores

� Mart Jack e –Commerce for online sales

� E-Marketing Solution

� Mobile Marketing Solutions

MartJack e-franchise is a solution meant for Manufacturers and retailers with exclusive outlets

spread across different geographic locations which will enable in strengthening their brand

presence across the globe as well as increase sales at local regions through central product web

store.

Mart Jack e -franchise provides then an integrated platform with multiple virtual storefronts. It

drives sales traffic, increases brand awareness, providing consumers the buying choices they desire

by integrating the real time information of products at local stores. It increases overall business

returns and Brand Image of the Company. Possessing multiple storefronts creates excellent search

engine optimization as well as provides multiple channels to target local net savvy customers.

• Central Product Web store provides absolute information about a i.e., Manufacturer and

Retailer brands, products, investors, policies, trends, news, structure , etc

• The Central Product Web store has following features:

� Product Data Bank

� POS integration

� Store Locator

� Product locator

� Deal Locator

� Mobile Locator

7. Ecommerce Solution:

Reasoning user-friendly custom e-commerce design solutions build an easy way for your customers

to find and purchase products they are exactly looking for.

The online sales can function by any of the following three options:

1. Pay online, Shipped from central logistics.

2. Pay Online, Shipped from stock point or Store

3. Pay Online, Pick up Offline (e store to store)

Option-1: Pay Online, Centralized logistics and shipping.

1. Order can be placed online using 1. Credit Card 2. Online bank Transfer

2. Invoice is Raised and shipping from Hotspot central Store

3. Product is delivered at door step.

Option-2: Pay Online, Shipping from Nearest store or Stock Point.

1. Order can be placed online using 1. Credit Card 2. Online bank Transfer

2. Invoice is Raised and shipping from Nearest HOTSPOT Mobiles store or Stock Point

3. Product is delivered at door steps for customer

Option-3: Pay Online, Pick up offline (estore2store)

1. Order online-Look for the estore2store logo associated with eligible items. Order

Online during checkout options.

2. Deliver to Store- Customer will select the Nearest franchise store where he would like to pick up

the selected items.

3. Pick It Up-Total convenience, when the customer receives the email and invoice, he can pick the

product at nearest store, which saves shipping and handling charges.

8. Customer Loyalty Programs

The reasoning offers its client to intergrate online and offline existing customer database and

implements very effective Customer loyalty programs.

The clsinets can implement programs like privileged cards, redemption points, etc

� Encourage customer frequency

Multiple points awarded for repetitive visits to encourage customer frequency during

the promotion period.

� Increase customers spend

Reward customers based on the minimum purchase amount or total spend.

� Drive customer activity

Encourage high customer activity at specific stores during special campaign periods.

� Reduce customer update costs

Inform customers of multiplied points earned directly on their receipts.

� Understand customer activity

Summary reports help you understand customer level, spend and location activity.

9. Internet Marketing Services

Reasoning provides technology based solutions for an effective presence to drive traffic to the

Web Stores to boost sales .Web strategy and Web operations Management Services by

Key2 Web, a subsidiary of Reasoning Global e Applications ltd.

Reasoning provides strategic roadmap and robust multi-channel solutions to power all

aspects of your online business and integrate with offline channels. The holistic suite of

services covers all phases of the customer lifecycle—from acquisition and engagement to

purchase, fulfillment and retention. Reasoning develop online branding and marketing

campaigns, build and manage user-centric Web stores and provide state-of-the-art

customer care and fulfillment centers.

� Devise Web strategy in conjunction with business requirements

� Technology platform integration and customization

� Devising functional fit and technical fit

� Implementation strategy and risk alienation

� Workflow and operations management

� Phase wise delivery management and project management

With our sole focus on Internet and e-commerce, the team at Reasoning has an in-depth

understanding of online shopping behaviors. This expertise enables them to develop user-centric

Web stores that create compelling brand experiences and organize the path-to-purchase for

optimal conversion. At Reasoning, they understand the client site must also communicate their

brand. They deploy multi-disciplinary teams on every project to make sure clients site’s strategy,

navigation, technology, taxonomy structure, design and content work together in harmony.

�Web store Template

�Color Scheme

�Design considerations for branding needs

� Content Positioning

�Product content development

� User experience and design

� User research

� Creative services

Portal Management and Technology Management services

Technology at Reasoning is driven to grow clients business across all channels. They

accomplish this by combining the proprietary technologies with leading third-party

applications to create a seamless, personalized shopping experience for thier customers.

“Our platform performs for your business—and your customers” Reasoning

The Reasoning (Martjack) platform is a combination of user-friendly functionality and back-

end technology designed to maximize sales on your Web site while giving your customers a

simple and satisfying shopping experience.

� Site management tools

� Search merchandising

� Promotional management

� Product ensembles

� Personalization and targeting

� Inventory management

� Catalog management

� Content management

� Marketing feeds

� Shopping functionality

� Product rating and reviews

� Parametric search and navigation

� Guided buying tools

� Rich Product experience

� Payment gateway

� Order management

� Lead tracking and Lead management

� Order status and communications

� Store locator

� Store-level inventory

� Associate ordering systems

� In-store pick up & ship-to-store

� Integrated catalogs

� Flexible gift vouchers / Discount Vouchers

� Advertising circulars

� Loyalty programs

� Reporting and analytics

� Application support

� Server Management and server

monitoring

SEO and Internet Marketing Services

It also provides Search optimization and Online Marketing services to clients looking to

strengthen their online marketing reach. It provides solution which helps client realize

long terms benefits from SEO or short term benefits from Paid marketing. The SEM / Paid

marketing brings in the eyeballs whereas the SEO brings a long term value through high

rankings in Search Engines.

� Interactive marketing

� Search engine marketing

� Online advertising

� e-mail marketing

� Content Optimization

� Inward link building

� Keyword Research & Keyword Phrases Identification

� Off Page Optimization

� Manual Search Engine / Directory Submissions

� Dynamic content optimization

� PPC (Pay per Click) management

� Keyword bid management

10. Reasoning Portfolio of Clients

Reasoning Client Portfolio:

11. Value Proposition to its clients

Offer Value Proposition

Online Presence

&

Brand Visibility

The Clients Brand gets online presence on internet and is reachable to 50

million customers. It can be optimized by the search engines with primary

keywords and thereby gets an excellent ranking in online market.

Brand

Strengthening

A new medium for branding which helps in Brand Awareness, Brand

Engagement and Brand Loyalty programs that can be effectively deployed for

better customer retention.

More effective

marketing

Since you can track customer preferences and purchases, businesses will be

able to fine tune their offerings based on customer demographics and profiles.

As the advertising will not be ad-hoc rather tailored to customer needs and

preferences, click through rates and response rates will be greatly higher than

traditional marketing.

More efficient

marketing

Instead of blanket marketing campaigns, companies can utilize our customer

profiles to offer coupons to specific customer segment at regional basis.

Demand

Planning

By issuing coupons/discounts and targeted marketing can draw customers

during slow times to smooth out demand and better manage their capacity

Product-Driven

Advanced store search allows consumers to locate specific "in-stock" products

closest to their home or business.

Technology

Leadership

Become one of the few established companies that successfully able to utilize

this technique and integrate all the stores under one flag.

Search on Move At the time of mobile search, users are in a positive mood for a purchase. Most

of them are on the go and out of the home; User can be immediately contacted

as soon as the seller receives the lead and quick action from him can close the

deal faster

Better chance of

conversion

Since the search is very keyword specific and localized, there are better chances

of lead conversion.

Traffic to Local

Stores

Retailers can influence consumers who research products online and finally

direct them to a specific dealer store that has the product in-stock. Thus, the

foot traffic is driven into your stores by ensuring that shoppers have accurate

information about the products, brands, and sales at your stores prior to

shopping.

Multi-Channel

Marketing

Enables consumers to purchase products by means of their preferred point of

purchase. Will utilize non traditional method of marketing for targeted

advertising.

Customer

satisfaction

Appropriate and accurate product information at a single mouse click will

enhance their online shopping experience and thus yield more customer

satisfaction.

Search at local

level

Both ebhav and mbhav search engines help the customers for local search of

products and services

12. Human Resource Management

The company has staff strength of about 110 very competent, young and dynamic

computer and Management graduates and post graduates with previous experience of

working with many big corporate like Infosys, Wipro, IL&FS etc., who are ably supporting

the core management team.

In spite of being a hub of people with many different backgrounds reasoning is a one

strong company, one strong team with a common understanding - This is the secret of

their success. The Reasoning team is an extraordinary set of people who’ve run

marathons for their company…and still have their running shoes on.

� It's a company with a conscience

� It's one of the fastest growing web enabled companies in India

� It's the next generation internet services and mobile technology based

company

� It lets you enjoy entrepreneurial freedom: It was started by 7 people in 2006.

The spirit of entrepreneurship still holds. You get the freedom to make

decisions and the freedom to experiment and take calculated risks

� It considers every employee to be part of the company and provides tock

options to all its employees.

Though compensation is an important consideration for attracting and retaining talent,

there are other factors that have influenced Reasoning’s ability to hold on to people who

have the biggest impact on its bottom line.

The Best HR practices at Reasoning includes

People are different: The idea of personalized employee motivation has been very well

implemented in the company .The staff is valued as individual and not as mere cogs in a big

wheel, The managers recognize this ‘personal component’ by building rapport, fostering

open lines of communication and providing unique development opportunities for

employees , it results in better relationship building and staff morale.

Training: Training is part of employer activity .Talented employees have expectations of

what is needed to achieve their career aspirations. An organization , Reasoning recognizes

this fact and helps its employees integrate their personal career plans with organizational

objectives through continuous feedback challenging work and growth opportunities will be

able to retain the best staff without difficulty.

Work life balance: With on-job stress taking a toll on the health and psychological well

being of a large section of the working population, many people are pushing work life

balance to the top of their priority list. By providing assistance to employees to help

balance job stress and personal commitments through advice, counseling and proper

support systems, Reasoning creates an ideal environment for work satisfaction and

happiness to thrive in.

Competitive Compensation packages: Reasoing has adopted fairly and adequately

compensation package policy in the organization. The compensation not only covers

monetary benefits, which clearly is high on the list, but it also includes other factors such

as recognition, appreciation, opportunities for professional growth, development and self

actualization.

Leaving alone the legal and mandatory benefits such as provident-fund and gratuity, other

benefits that have been designed by the Reasoing for the professionals include:

Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or injury or

pregnancy in case of female employees or spouse of male employees. All employees and their

dependent family members are eligible. Dependent family members include spouse, non-earning

parents and children above three months.

Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for

Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial

disablement / death due to accident.

13. Performance parameters for Customer Satisfaction

There are several key service delivery parameters and customer satisfaction index requirements of

the different clients who get their online marketing products and services from Reasoning.

• Average Handle Time: Every operation executive has to follow the average handle time

or turn-around-time standard to close each call of the customers with solutions to their

queries.

• Website quality: The overall quality of website and service delivery should be excellent

to meet the requirements of top management as well as their customers

• Product, Process &Technical Knowledge: A high level of product, process and technical

knowledge is a must for resolving the customers issues and queries in the best possible

manner and with the aim to achieve high customer satisfaction with service customization

and minimization of turn- around-time.

• Demand & Capacity Management: There are huge no of stores to be created with

authentic information in the prescribed time period. So the operations executives has a

target of developing a certain minimum number of stores as per demand and capacity

management.

14. Key Issues in Service Delivery: Service Gap Analysis

There are many key issues in the service delivery quality that we identified at

Reasoning. They are as follows:

� Reasoning lacks a strong customer support department, the implementation team

takes care of support issues of clients, which are not answered on time and there is

a gap between the communications from the company to the client.

� The attrition rate or employee turnover rate was earlier Zero, but now due to lack of

motivation the talented pool of employees are moving away in times of recession.

� The employee satisfaction is declining. The work target pressure creates anxiety,

especially in the marketing team.

� There is a level of conflict between the marketing, technology, operations and

human resource department.

� The Company is not spending much on operational and training of employees.

15. Reasons for Service Delivery Gap

The basic reasons for the existence of these situations at Reasoning are:

1) The amount of packages that a Reasoning employee receives is 20-25 % lower for the same

profile as compared to the other employers in the market for the Internet service category.

Reasoning attributes this as to cost cutting or bringing down the operational cost thus

earning the dissatisfaction of its employees.

2) High attrition rate is due to employee dissatisfaction the reasons being lower payments of

salary, uncertain working hours, lack of focus in the employees training due to which they

are unable to meet the required standards of service delivery quality and are forced to

leave the organization.

3) The employees who are not able to perform in the field. High level of work pressure due to

sales target creates anxiety and pressure among employees the newness of the concept

and product further aggravates the problem, as the sales force is not confident enough of

the product and services. The employees are not motivated and charged and fail to give

100 % of quality service to the customers.

4) Due to the ineffective functioning of “SERVICE PROFIT CHAIN” at Reasoning. The overall

customer satisfaction level has declined in past recent times.

5) The conflict between Technology team, Operations and Marketing exists because of the

misunderstanding and mismanagement. The people at marketing have the pressure to

cover maximum number of sales and orders and in the mean time try to sell the products

and services at any cost to customers by over promising .but the Operations and

Implementation team is not able to deliver the quality service on time as promised by

marketing team. So there are always chances of over promise and under deliver and this

leads to conflicts between marketing and operations department,

16. Application of service Marketing Strategies & Concepts

1)Firstly to minimize the attrition rate and curb the inefficiencies in the service delivery

quality, focus on specialized training is a must as it provides the basic concepts, knowledge

and tools for providing superior customer service.

2)The under performers must be put to specialized training and an “ACCOMMODATION

STRATEGY” approach can prove to be better in several situations rather than “CLASSICAL

REDUCTION STRATEGY” to minimize ‘Efficiency Variability’.

3 )All the parameters for measuring the customer satisfaction and the ways to achieve that

must be well communicated to the employees.

4)Rather than paying lower salaries to the employee’s to bring down the cost of

operations, Reasoning must focus on specialized training to minimize the attrition rates

and increase the performance levels. This will automatically take care of the cost of

training and operations. The company will gain in the overall action in the long run with no

additional expenditure or cost.

5) The conflicts between the operations, marketing and management can be resolved by

better management strategies. A critical balance has to be striked among different

departments when their interests are different with mutual understanding and co-

operation.

6) The concept of “SERVICE PROFIT CHAIN” is indispensable for Reasoning’s success in the

long run. Only a satisfied and loyal employee can bring in a satisfied and loyal customer

thus enhancing the company’s profits and climbing up in the value chain ladder.

7)The strategies for demand and capacity management and handling requests for service

customization can be strengthened by specialized training and implementing upgraded

technology, CRM Tools, better cultural and attitude study of the customers, innovations

and relationship building, etc.

17. Conclusions

By carrying out the study of Reasoning Global e Applications ltd service delivery strategies

and analyzing the service performance, it can be concluded that the service organization is

a Indian digital marketing service provider and is a global brand with many leading

businesses in the global competitive arena. By carrying out interactions and interviews

with few Wipro employees at Hyderabad, we identified some key issues in the service

delivery that creates a service delivery gap, but by doing the gap analysis we are able to

apply the service marketing concepts and strategies and it can really help in minimizing the

service quality gap without any additional cost to the organization.