Services Marketing: of Inn Restaurant - Case Study Example

Service Marketing: Inn Restaurant Table of Contents Executive Summary 2 Introduction 2 Overview of the service (Inn Restaurant) 3 Potential Fail Points 3 Appropriate Redesign Strategies 4 Management of Demand 6 Management of Customer 8 Conclusion 9 References 10 Executive Summary The service industry is faced by many challenges ranging from competition to quality of services offered. Inn Restaurant is an example of such a business that serves consumers foods and drinks. Inn Restaurant has been operating for the last ten years and has witnessed increase in market share. Inn Restaurant has potential fall points, which includes servicescape, quality of service and food, and lack of appropriate marketing strategy. To counter these weaknesses, it is important to improve servicescape, improving the quality of services and foods, and also formulating and implementing appropriate marketing strategy. Management of the consumers and demand is important in ensuring that the requirements of the consumers are met. This can be achieved through implementing appropriate management model that incorporate all functions of an organisation. The demand management should ensure that products and services sold in the Inn Restaurant are frequently updated, follow-up of consumers is championed, and varieties of food and drinks are offered. In addition, Inn Restaurant understands importance of customer management and it has formulated strategies in terms of managing customer waiting time, reservation strategies, and queuing strategies. Introduction Competition and changing consumer requirements has resulted in introduction of new and unique strategies making a business successful (Hsu & Powers, 2001). Within the service industry, service marketing aims in making consumers appreciate what is been offered and the offerings is based on experience (Fisk, Grove & John, 2007). Positive experiences contribute immensely to a service industry compared to negative experiences. Inn Restaurant is an example of business sees the importance of service marketing and it utilises service marketing in ensuring that the business is successful. The paper analyses Inn Restaurant from the perspective of service marketing. Overview of the service (Inn Restaurant) Restaurant is an establishment that prepares and serves drink and food to customers with the aiming of earning an income (Rao, 2011). Many of the restaurants usually offer meals that are eaten within the restaurant. Offerings within a restaurant differ based on the requirements of consumers and location of the restaurant (Hoffman & Bateson, 2010). Inn Restaurant is an example of a restaurant that has been operating for the last ten years and has continuously grown increasing customer base, market share and its perception towards consumers plus competitors (Hsu & Powers, 2001). Potential Fail Points In any business, there are areas where corrections should be introduced to ensure that a business operates efficiently (Lockyer, 2007). Potential fail points within the service industry come in different forms including communication between the customer and employees, first impression of a given place, and also perception on services and other offerings within the sector (Fisk, Grove & John, 2007). Thus, Inn Restaurant fail points include: Servicescape – the first impression of the Inn Restaurant ranging from exterior design to internal facilities should be overhauled. Some factors that should be considered include employee dress, interior design and décor, air quality, and surrounding environment Quality of service and food – Poor management of logistics within the restaurant has resulted inefficiency in supply of important products that are required by consumers. Moreover, the quality of products supplied are questionable since numerous complains have been reported by consumers Poor marketing strategies – the management of the restaurant have not formulate appropriate strategies that can aid in ensuring that more customers are informed on products and services that are offered by the restaurant. Moreover, Inn Restaurant has not segmented effectively products and the approach in which services will be disseminated. Appropriate Redesign Strategies Inn Restaurant faces three major problems, which are servicescape, quality of service and food, and poor marketing strategies. Approaches towards these weaknesses should be redesign to ensure that the customer’s experience within the restaurant is memorable, and the customer can associate the restaurant with certain experience. Some of the redesign strategies that can be employed include: Servicescape – The design of the interior and décor should complement on the dresses of the employees. This means that ranging from colours on the walls to table marts should factor on varieties of consumers who visit the restaurant (Hsu & Powers, 2001). This means that Inn Restaurant should review interior design plus the employees’ dressings in a manner that incorporates the expectations of most consumers, the “climate” in the restaurant, and the type of foods and drinks offered within the restaurant. Inn Restaurant management should also consider improving on ventilation and ensure that air is of high quality and also the temperatures within the restaurant are controlled. Inn Restaurant should manage the fumes that are coming from the kitchen and also ensure the different smells of different foods within the restaurant cannot affect other consumers (Fisk, Grove & John, 2007). Surrounding environment is important in service industry; especially food related business, because it is difficult for a consumer to enter a hotel that is surrounded by dirt. Inn Restaurant should ensure that the vicinity of the restaurant is clean and using pots, should plant flowers and other natural vegetation within the vicinity provided it does not contravene the customers and other regulations in place. Quality of service and food – The foods and drinks that are requested by most consumers are not available, the management should determine and ensure most of the drinks, and foods requested by the consumers are available (Hsu & Powers, 2001). In addition, the management should review the terms and conditions of their suppliers to ensure the produce supplied is of high quality and meets the requirements of the consumers (Singh, 2008). Moreover, the management should improve on its stock keeping strategies to prevent wastages and reduce the chances in which some foods or drinks are spoilt (Fisk, Grove & John, 2007). Management should audit the foods and drinks consumed to ensure the right demand is in place and determine the minimal amount that is required to request for additional stock. Poor marketing strategies – Inn Restaurant has not maximised on marketing and they have not researched conclusively the market (Fisk, Grove & John, 2007). To attract more customers, it is important for any business to understand the market that it operates in, what consumers within that market requires, and what strategies can be used to manipulate the market to favour the industries. Inn Restaurant should formulate a marketing plan that incorporates integrated marketing campaign plan to ensure that more consumers can attracted to the restaurant (Hsu & Powers, 2001). In addition, Inn Restaurant should segment the market and determine the consumers who can become more profitable relative to others. It is important to create around three segments and ensure that they maximise on one of them even though the service the other two segments. Management of Demand In the service industry, it is important to meet and exceed the customer’s expectations to ensure that a business continues to become successful. This means that good management is paramount in ensuring that a restaurant becomes successful (Fisk, Grove & John, 2007). Good demand management does not only affect the way the restaurant operates, its attitude and vision but also creates an important component in defining experience of a consumer. Before proceeding with any business, it is important to determine the market segment and the segment that can become more profitable for the business (Hsu & Powers, 2001). Segment market is the segment in which the business aims to receive more business from. It is through market segmentation whereby the likes, tastes and dislikes of the restaurant will determine how food will be offered, the type of drinks, the interior decor and other important information that defines the way the business should operate. Demand management also involves maintaining and managing previous customers. This means that the marketing strategies should focus on means and ways in which previous consumers can be attracted back into the business (Hsu & Powers, 2001). A satisfied consumer also reduces the costs associated with marketing because a satisfied customer will market the business through word of mouth. Word of mouth marketing is important in service industry meaning that the services offered should be of high quality since it is not like product whereby there is a sample (Fisk, Grove & John, 2007). This can be achieved through requesting customers to refer friends or acquaintances or requesting them to review services offered on feedback page or online blog. Another important component that the restaurant should look for is how the consumers receive or access the products and services been offered (Fisk, Grove & John, 2007). Different strategies exist in which the restaurant can offer its services ranging from eating within the premises to take-away. In the case of Inn Restaurant, the consumers will consume the products within the premise meaning that it should be accessible easily and consumers should understand its access or appropriate assistance should be provided (Schultz & Doerr, 2009). Demand management can also come in terms of foods and drinks that are been offered and whether the consumers are served optimally (Hsu & Powers, 2001). This means that the restaurant should employee competent and enough workforce to address the requirements of consumers swiftly both in terms of providing the requirements services of time and also ensuring the varieties of food and drink are available. It means that stocktaking and management of employees should be done optimally (Fisk, Grove & John, 2007). Management of Customer Management of consumers is different from managing other activities such as inventories. It is imperative to ensure that consumers are accorded maximum support meaning that service providers can be reached easily. In the hotel industry, some of the common factors that are associated with management of customers include: Waiting time – In food industry, customers usually wants to be served as soon as they enter a hotel/restaurant. This means that there should be strategies in which customer wait times are managed effectively. In Inn Restaurant, the management utilise different strategies that ensures that the customers do not feel that there time is wasted (Hsu & Powers, 2001). Those well trained employees can easily communicate and handle consumers resulting in creation of positive experience to the customer. All the employees in Inn Restaurant are well trained and can communicate easily with consumers updating them on progress of orders. The consumers are also update and told on the appropriate time that their food will be ready (Fisk, Grove & John, 2007). This will prepare the consumers psychologically and prevents scenarios such as consumers keeping turning towards were food is coming from. In addition, the comfortable sits, silent television with moving images and silent pleasant music makes the environment conducive for the consumers. Nevertheless, Inn Restaurant understands that there are a times when all is not well, and they have service recovery strategies such as offering heart-felt apologies to extreme strategies such as writing off a bill. Different queue configurations – Inn Restaurant management bases their servings on the type of food and consumers are served while seated (Hsu & Powers, 2001). This means that the queue is based on the time that is required to prepare the food, the amount of food required and the number of customers who have already order similar foods (Young, 2010). For example, chips are easy to prepare compared to other foods such as meat stew (Verma, 2007). Reservation strategies – Sometimes, some consumers may decide to make reservations for personal activities or corporate activities (Fisk, Grove & John, 2007). Inn Restaurant bases its reservation strategies on different factors that includes on time, the type of reservation, size of reservation in terms of number of customer and requested food. Moreover, the reservation is also based on number of tables and seats (Hischer, 2008). Conclusion Service marketing industry is not similar to other business because it is the experiences that count and not a physical component. Inn Restaurant understands this requirement and it tries to ensure positive customer experience is encouraged. Some of the shortcomings associated with Inn Restaurant include servicescape, quality of service and food, and poor marketing strategies. Some strategies that can be used to mitigate these shortcomings include improving on these three sectors through employing appropriate strategies and measures to ensure that the business becomes more successful. Management of demand and consumers is important in ensuring that the experiences are long lasting and contributes in success of the business. Management of demand champions lasting impression in terms of quality of food, customer follow-up, and reduction on marketing cost while customer management ensures that the customer is satisfied while still in the business environment. References Fisk, R., Grove, S., & John, J. (2007). Interactive Services Marketing, 3rd Ed. London: Cengage Learning Hischer, D. (2008). Service Marketing - an introduction. London: GRIN Verlag Hoffman, K., & Bateson, J. (2010). Services Marketing: Concepts, Strategies, & Cases, 4th Ed. London: Cengage Learning Hsu, C., & Powers, T. (2001). Marketing Hospitality, 3rd Ed. London: John Wiley and Sons Lockyer, T. (2007). The International Hotel Industry: Sustainable Management. London: Routledge Rao, K. (2011). Services Marketing. Jakarta: Pearson Education India Schultz, M., & Doerr, J. (2009). Professional Services Marketing: How the Best Firms Build Premier Brands, Thriving Lead Generation Engines, and Cultures of Business Development Success. London: John Wiley & Sons Singh, L. (2008). Marketing in Service Industry: Airline, Travel, Tours and Hotel. London: Gyan Publishing House Verma. (2007). Services Marketing: Text And Cases. Jakarta: Pearson Education India Young, L. (2010). Marketing the Professional Services Firm: Applying the Principles and the Science of Marketing to the Professions. London: John Wiley & Sons Read More