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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.

http://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/goods-and-services.htmlhttp://www.businessdictionary.com/definition/concept.htmlhttp://www.businessdictionary.com/definition/coordination.htmlhttp://www.businessdictionary.com/definition/element.htmlhttp://www.businessdictionary.com/definition/call.htmlhttp://www.businessdictionary.com/definition/four-P-s-of-marketing.htmlhttp://www.businessdictionary.com/definition/selection.htmlhttp://www.businessdictionary.com/definition/development.htmlhttp://www.businessdictionary.com/definition/distribution-channel.htmlhttp://www.businessdictionary.com/definition/cumulative-audience-Cume.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/promotional-strategy.htmlhttp://www.investorguide.com/stock.php?ticker=AAPLhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/developed.htmlhttp://www.businessdictionary.com/definition/application.htmlhttp://www.businessdictionary.com/definition/system.htmlhttp://www.businessdictionary.com/definition/price.htmlhttp://www.businessdictionary.com/definition/capability.htmlhttp://www.businessdictionary.com/definition/place.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/promote.htmlhttp://www.businessdictionary.com/definition/device.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/technology.htmlhttp://www.businessdictionary.com/definition/events.htmlhttp://www.businessdictionary.com/definition/web.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/term.htmlhttp://www.businessdictionary.com/definition/customer-needs.htmlhttp://www.businessdictionary.com/definition/satisfaction.htmlhttp://www.businessdictionary.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.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/goods-and-services.htmlhttp://www.businessdictionary.com/definition/concept.htmlhttp://www.businessdictionary.com/definition/coordination.htmlhttp://www.businessdictionary.com/definition/element.htmlhttp://www.businessdictionary.com/definition/call.htmlhttp://www.businessdictionary.com/definition/four-P-s-of-marketing.htmlhttp://www.businessdictionary.com/definition/selection.htmlhttp://www.businessdictionary.com/definition/development.htmlhttp://www.businessdictionary.com/definition/distribution-channel.htmlhttp://www.businessdictionary.com/definition/cumulative-audience-Cume.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/promotional-strategy.htmlhttp://www.investorguide.com/stock.php?ticker=AAPLhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/developed.htmlhttp://www.businessdictionary.com/definition/application.htmlhttp://www.businessdictionary.com/definition/system.htmlhttp://www.businessdictionary.com/definition/price.htmlhttp://www.businessdictionary.com/definition/capability.htmlhttp://www.businessdictionary.com/definition/place.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/promote.htmlhttp://www.businessdictionary.com/definition/device.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/technology.htmlhttp://www.businessdictionary.com/definition/events.htmlhttp://www.businessdictionary.com/definition/web.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/term.htmlhttp://www.businessdictionary.com/definition/customer-needs.htmlhttp://www.businessdictionary.com/definition/satisfaction.htmlhttp://www.businessdictionary.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.

D

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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.

!D

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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/