An analysis into service marketing perspective for service improvement

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BY:
UTKARSH [PGP/19/177]
ADITYA [PGP/19/184]
HITAISH [PGP/19/258]
DEEPSHIKHA [PGP/19/135]
PRERNA [PGP/19/277]
SAHIL [PGP/19/043]

TABLE OF CONTENTS
Introduction.............................................................................3
Fast Food Industry in India........................................................3
Industry Drivers........................................................................3
Research objective and procedure.............................................3
8Ps of Service Marketing...........................................................4
Operations Management: Maintaining Quality............................5
Service Environment.................................................................5
Service Quality Indicators..........................................................5
Complaint Management:............................................................5
Service Marketing.....................................................................5
Insights from Management/Customer Interviews........................6
Insights from Primary Survey....................................................7
Human Resource Management...................................................7
Moment of truth for pizza corner...............................................8
Service Analysis: Service Triangle..............................................8
Service Rater............................................................................9
Service Quality Gap...................................................................9
Recommendations...................................................................10

Introduction
Pizza Corner is a fast food chain serving pizzas, burgers, pastas,
appetisers, sandwizzas and desserts. It is a brand of Global Franchise
Architects (GFA), Geneva and operates as dine-in restaurants, delivery
outlets and express kiosks. Operates over 100 outlets in India, China,
Bangladesh, Thailand and Myanmar. In India, it does not serve pork of
beef products because of a significant percentage of target customers are
either Hindu or Muslim. We have chosen Pizza Corner for our project
because of the huge number of IIMK students who eat regularly at the
restaurant. This gives us a good opportunity to judge the organisation on
many service aspects via the way of primary as well as secondary
research.
A few aspects of the organisation are highlighted below:
Mission: Provide wholesome food with various delicacies, believe in
creating the Wow experience for every customer by serving a range of
innovative range of delicious and high quality pizzas in a fun, friendly and
comfortable environment
Quality Policy: To continuously improve ourselves, our standards & put
our hearts into what we do so that we can improve the customer
experience at all our stores worldwide
Tagline: The way you like

Fast Food Industry in India

India has always been a food-loving country with each region having its
own special cuisine. Restaurant industry in India is mainly driven by the
youth aged between 15-44 years. With a population of 1.2 billion and the
largest number of youth on the planet, opportunities for the quick service
restaurant industry is huge. About 10% of the fast food market in India is
organized. Indian fast food market is expected to grow at a CAGR of 18%
by 2020 due to changing consumer behaviour and demography.

Industry Drivers
India as a travel destination: India projecting itself as a major tourist
destination to the world abroad.
Changing demographics: Vast pool of working population in India and
rapid increase in nuclear families.

Research objective and procedure

Our research objective for the study is : To study into the service
management/delivery of Pizza Corner and find out the lacuna (if any) to
investigate into declining sales and develop an effective service
strategy.

Understanding Customer Needs, Decision Making,

Studying the Service

Understanding the Custom

Building Service Str

8Ps of Service Marketing
1. PRODUCT ELEMENTS: Multiple Product Strategy(Appetizers,
Beverages, Deserts, Pasta, Pizza - Pan Pizza, Stuffed Crust Pizza,
Sausage Crust Pizza, Thin Crust Pizza, Twisted Crust pizza)
2. PLACE AND TIME: The method of distribution used are Delivery &
Customers to Dine-In.
3. PRICE AND OTHER USER OUTLAYS: A High/Low Pricing(Price
Skimming) strategy as far as its new product are concerned where
it fixes the price higher than its competitors and then gradually
lowers the price below the competitors prices.
4. PROMOTION AND EDUCATION: No Advertising, Occasional Sales
Promotion, Coupons & Discounts.
5. PROCESS: Take-away/Dine-In refined carryout procedures to
provide faster, more efficient service rapidly implementing
combination operations.
6. PHYSICAL ENVIRONMENT: They have a pleasing environment,
nice interior decoration which looks rich. Pizza Corner focuses on
neat and clean environment. Pizza Corner Staff believes that they
are providing the superior quality to their every customer.
7. PEOPLE: All are skilled employees. Pizza Corner does not have a
standard uniform for their employees.
8. PRODUCTIVITY AND QUALITY:
Serious lacks in Productivity.
Quality is consistent but delivery/dine-in experience time changes
frequently.

Operations Management: Maintaining Quality

Pizza corner focus on quality is reflected in its tagline: Best Pizza through
Quality and Innovation. It maintains quality of products and services by
exercising various quality control measures starting from storage of raw
materials to delivery of service.

Raw Materials: Its first stored in deep freezer from where the daily
stock bought in walk in cooler. The expiry time and date are put on
each topping. Also the delivery bags are properly sanitized.

Process Flow: Expiry dates are checked before using toppings. Hair
caps and gloves are used during preparation. It makes use of
consistent quantity during preparation as well as advanced
machinery and equipment's to reduce cycle time

Service Delivery: Proper packaging to ensure that order is

delivered hot as well as fast. Trained employees are used to deliver.
Personality development and grooming sessions for employees are
held.

Service Environment
The environment in which an organization provides services forms an
essential part of the consumer experience by creating a distinctive image
and unique positioning. The caf has a pleasing environment with nice
interior decoration that looks rich. It focuses on neat and clean
environment. It engages customers in fun activities like crosswords who
come for dine-in while the order is prepared.

Service Quality Indicators

Service quality indicators are used to analyse the restaurant. The
indicators are as follows: Individual and group reservation facilities are
available in the restaurant. Also home delivery facility is available under
4kms. It also ensures faster delivery time and Computer generated
invoice.

Complaint Management:
This is one of the most important part of service design as it helps in
maintaining quality control and reduce customer grievances. In the
current context it becomes even more essential so as to maintain repeat
business and reduce negative word of mouth for the organization.
Complaint management helps in maintaining quality control and reduce
customers grievances. It provides quick replacement of order on genuine
quality related complaints. Also the employees are trained to handle
customer complaints with ease to reduce negative mouth of publicity.

Service Marketing
Service Delivery: Different offers and discounts are available for both dine
in and home delivery respectively. Orders can be made via both Internet
and Mobile Phones. Value for money by competitive and affordable
pricing. Quick delivery of food. Delivery boys carry exact change with
them for customers convenience. Sometimes the food degrades its
quality in case of home delivery (loses crisp and becomes soggy). Only
one big table; mostly reserved for families. For customer closeness, Pizza
Corner adopts policies to keep in touch with the customers to provide
good quality food and services.
Delivery Policy: Both dine-in and home delivery (radius of 4 kms)
available. Single and separate delivery number in each city. No minimum
amount requirements for free home delivery.

Insights from Management/Customer Interviews

We conducted an in-depth Interview with the manager of the restaurant
and also with 10 customers. The interviews were used to get insights on
what steps the restaurant takes to ensure service quality, complaint
management etc., which are detailed in the respective sections of this
report and were also used to formulate a draft for our primary research
surveys.
The pain points we found from the management interviews are listed
below:
1. The restaurant does not have a feedback mechanism, where
feedback can be given to any person in the delivery chain such as
the chef, delivery boy etc.
2. The restaurant does not have an online customer engagement
mechanism such as a Facebook page. This makes it difficult to
connect with customers and increases the transaction cost of
communication with customers such as communicating about the
latest offers.
The insights from customer interviews are listed below:
1. Mr. Shenshah Khan, Dine-in Customer: He said his children love
the colourful restaurant and cheese garlic bread. However, He does
not like that there is no parking space for his car. He has to park it at
other places and walk back to the restaurant.
2. Ms. Vinita Vermam, Dine-in Customer: She said that it is her
preferred fast food restaurant in the area because of the variety of
vegetarian options and customisations available. She says that
pricing is an issue as eats here very frequently but does not get any
loyalty benefits.

3. Mr. Mirsab Khan, Dine-in Customer: He was visiting with two of

his friends. They were refused an offer (which was applicable only
on delivery/take away and not dine in). He was not allowed to eat at
the restaurant and had to take away his food. His disappointment
was clearly visible. It is unacceptable to force such offers upon
customers. The staff should have been more understanding and
allowed them to dine in.
4. Mr. Yash Kumar (PGP19), Delivery Customer: He says he is a
regular customer and loves their non-veg pizzas, especially the
unique localised flavours like Lamb Keema. He also says that he
gets no discounts even while being a repeat customers (need of a
loyalty program)
5. Mr. Ranveer Singh (PGP20), Delivery Customer: He is a fan of
this place and has no big complaints. He however says that
sometimes the quality is not consistent and you do not get what you
paid for in case of extras/customisations.
6. Ms. Saloni Jiwrajka (PGP19), Delivery Customer: She thinks
that the order taking staff needs serious retraining as it is difficult to
make them understand any customisation request. She also says
that she has complaints like mis-delivery of food, non-responsive
staff and she thinks that these complaints are still unresolved.

Insights from Primary Survey

For understanding the requirements of the customer, we performed the
primary survey asking them about the satisfaction level through different
parameters. The different parameters which we chose are frequency of
the visit, on-time delivery service of the restaurant, behaviour of the
employees, quality of the food, ordering of the food, and other additional
items served with the food.
We chose factors which are common for both delivery services and
restaurant services. These factors are relevant as far as pizza corner is
concerned.
Findings:
1. Through primary survey we found out that 37.5% of the customers
use our service often at pizza corner.
2. Pizza corner is rated almost same as other restaurants in
kunnamangalam area as 37.5% people believe that quality of food is
same and 37.5% believe that quality of food at pizza corner is
somewhat lower as compared to that of other restaurants
3. Food ordering system through phone and at restaurant is also good

4. There are some problems which are similar to what we found during
focus interviews
5. On-time delivery is very poor both in restaurant and at campus
6. There has been a gap found in what we ordered and what was
delivered
7. Complaints regarding availability of sauce, utensils and tissue
papers
8. Employees are friendly and courteous
9. No issue with the language for people coming from outside

Human Resource Management

Employee strength is not enough to server customers. The Person who
takes up calls for delivering pizza should be thorough in atleast 3
languages (i.e. English, Hindi, Local language). The person who takes
order from the customer should recommend pizzas that best matches
their preferences. If customers are waiting long for their food, then Pizza
Corner could engage them with certain activities (games). Pizza Corner
should keep the track of customers anniversaries and birthdays and offer
them special discounts on these occasions.

Moment of truth for pizza corner

1.
2.
3.
4.

Greeting
Taking Orders
Menu
Delivery

Service Analysis: Service Triangle

Service Rater

Service Quality Gap

Recommendations
1. Commitment towards Prompt and Quality Service is required from
the restaurant
Prompt service is an important factor because students have to wait
for hours because of which they prefer for the next time GuruPrasad
or Subway which are inside the campus instead of ordering food
through Pizza Corner.
Quality of food is also important. Food should be warm before
delivery or while serving
2. Employee commitment towards service must be ensured to provide
consistent service
It has been found out that when pizza is not delivered and when
students call them, they do not report the actual status of the
orders. Sometimes in restaurant, the person taking orders doesnt
understand the customers point of view so he calls someone else to
face customers
3. Indulge in Facebook Engagement programs, promotion on social
media sites about the offers
By taking their facebook Id or by taking photos, with them and
posting on pizza corner facebook page. The coupons can also be
given through facebook page that will not only reduce paper cost
but also make it faster
4. Payment acceptance via Paytm wallet
It increases convenience. Sometimes when we are out of money and
we are outside and we feel like eating, we cant because we dont
have cash. So using paytm will help increase customer base
5. Proper end to end Feedback Mechanism right from quality of food to
the delivery of services
Feedback mechanism is required for both online and offline services.
For online, complaints can be put in through facebook and we
should highlight that we respond to customer grievances fastest. For
offline campaign, we should try to alleviate their dissatisfaction by
giving extra loyalty points or giving discounts
6. Differentiating factor In the form of coupons or discounts or some
local taste cuisine because people while coming with family, wanted
to have a different taste as compared to what their children have.
So if items like idli or coconut chutney can be added, it will be a plus
point.