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opyn h d m

nal

Table of Contents

Prifaa to the 'econdEdition

VII IX

Prifact

to

II. ~ First Edition


N
to

List of Pmpmiv«
LutofAddirional

1. Prelud Wh tAr

the Se en P' of ervice Marketing


to ervi ?2 2

An Introduction

~ win ervi ifying ervices 8 TP or the traregic Aspects of ervices Marketing 9 cgment election or Targetting few egmen 1 Mini Case J: Tata Info tech Rifocusses on the orporate egmmt P iti ning ~ r the le ed egmen J

f M rketing R rch 18 Increasing use of RM nd Oat Mining RI


earch
ervi

20
2

peri nee and redcnce rtribu Marketing Environment in India

23

Ethi

in

rvice Marketing
2

2
10

Discussion Qu~stions

Cas« may I: A

uestionnaire

Asst'S! lobal

'ompetitiueness in eruic« Industries 26 Case ttldy 2: 'eruiceBrands: A Cast Nldy ofXnnadu Building II. e Brand Equity of a ew Training Institution 2 Case tudy 3: The Annapooma Dabbatoalla Compnny Ltd. (ADC) 0 Cast Study : Kadau« Resorts 7

2. Product-The First P
Introduction ( crvi e Product

me

40 POP') 45

ev n

46

ervicc Produ

: Bundl d wich

nventi nal Product and randalone

ervi life yel 54 ervice 0 ign: A neral Framew rk 6 ervi c Quality: The P r uraman Berry and Zeirh ml

odel

ma

ta

Cus~m.~sat~().ITII. e:r.~w;Shllld:ardwSiniofil v

,ea

Dd~rs~ F3iUl:lfesancl.RewveiW li4 Semce 'Gnannrees: Do Tiley Wo.rk? 64


Sew.loe leve~Agifeeml.efilt;S :5,6 ,Mini CtlSt 1 tHlltJuw,dJj .MOio, CtJtrJPW111: TIN Cast' ,o/an A.utom'OiJilt Dtnlf<T' Mini~~ 2;~B:':41rJdinl ,of INGV)'.f1tJ .lJanJt ,rJ;n:d' tJ't: a1'(J~p '!to Mini ,Cme3.·Innt)wztiv¥! S~ffiic'thoJum: TIM ,(;me(Jf!iMlCi(~MBP 'lrf) .JJ.iJC:UMio~ Q~eJtions 71 UMt' Stua!j J: JaCl.BI1TJA 72 ,Oue sway 2:: India P:qJI:A:m'ids,t Comlttitiw' Tiw~s J OS

{is

.Lo>blllJ~r:infDJ .11'5 H~s 't~e Inller.fIlem:Made lhcat~OIilla: RedundaiOt Variable?

11'8

T~u'Soel1idjliig; PhysooQill Constwnts: ~f ~atiio<n


GhiilL!Iln~f M!.UIi.~mel:1it Issues

12fJ

J22

Thf: Str~kgic Role Of'PiO~JilI[IJlfSaJle' Tef.f[l~nall:sinCredlic:Oa.rds/D.elli!! Ca~


.F~ndsthat hrJ·~ Distribution Ann:s Do \Well 1.25 Di,u:u$$;Q1J Q~'(;f.!iQn$ J25 Mini Case .1;; .Mu~

123

'rat Stud,}: .E--C'hQ~pflll~#kt'li:"'4 ,r)/JTC ,12i6 Case .stud, 2~Findi~:f tht' Rig!;~ Pilll, for P;d;tb(Trukr 1!J1)

p'W!rfil(l!dOfi

O:bjec~.ves 1.36
./38'

Pro:mo~lolll. :lllJan

Tifill~ng !tile'Prmli1od.O.i1IS: A "mmo~i.(m L~reClde;

144

Advc-ruSiln,g $pe~ds ·ofBanks ~n Iwdia: A Risi.l1Ig Gt3Jph .145 Tfle~ds: bllcfJeasing: U~ ,of BeIi)w=ldl!~ti~~.Mtld~:a, 011' SalI.es:PI'li:unot~o:fiS: Special! Con.~jderado'As LQPromorion of Sen'.io~ J·4(5 Mi,ni C~~ .1; .lC1Cl.E1al1!k 15J Mini Cme 2::.. Keram TQ~ris.m~~ Q.w.n C()~:n~' 151 Gf:Jai
.DisM~i()n
~~
.r"

145

QU€S.t:i011i J 52 S. -I., l' __ ,... " ~. L ~ rq .·m¥.l '.. R ,«1;11, il~:JU~ttP«1t JJ

:5. Prio~T1b.e F!!!I.tI!fthP


Fricmg a S~tf¥.iceP'md:ucif ljB Demand V:a~,iat~o\fal8~ apaehy C(li~:SU'3!~na 15" C Segmen~~!L~'(iI[!j 'UitJ Pric~ng .F.~[HILndoJJSenj~ ~f 161 . P[ic:~ngiinHypeif,:"ocHnpet1f~vle S'emors, 162 p~clt!.otGg,,!)If Prici.imgJ63

1'57

F~ed vef.sij$lFtoa~i.lii!gPfiQes~n .F.inajl<(:i~SefVi~ 165 f':~lcing;hlfiOrm;nion l','echnolo,gy' (IT) Se'wJ,oes .uij MitJi CMt' ,1: PTid/W II Cou.r:ttt' $e,t:Ilk~ 1'65 ,Mh,.; C4$,~ : Dropping Prk~. thtl,New Ch8Jtmg~fo1'ImJias ,lTS«tf),rf 2
Mini 3: Ihmra' N~wBftW 166 '\';jeM ,Ma03:,FUi,(:lIl(and, iu "'S:[:[3ttg~c ~e[,s"

au,

U.f6

.168

D,acmlir.m' Q~l!tiom Uf,f) ,Ca-re' Stwly .l,~ ,Pr:om ,B~lJn :llJBamftl

171

6. ~oo,le- The FiKhP~.75, J?'eop~~ TffileKey w a. SefV~~eBus~~~\S 176


Rocmidng: .Elifip,tllyces 17.6
179 TheHR. FUlnc~jQn, in. SeNilOi:'S M~llivuiQm CHi~ [he Job 180

Tne M~'Vc:T owams Vrul.e",Added. JODS 183 M.easllu'lingPm.ducrivhy ,ofP,eople i~ Service Olpni~s:adons J.i8i3' Mini ,aur 1: Sqwal Ai!'-lln~.~Ptopk PfOiJ.kfm 1,S5 Mi,,; lau~'2: TKhn:i"'a1 A~, Siills Eno._hr' ,186 Mi"i ,Cart' 3.: SJi" Nt>tItJ 6y JTF"irm j BmpltJytets UJ6
Training ,of Emp~oFees

1.£J'

DisC'UJ!Si'O,,' ,Q1Ustiow
- (',_., ..1 CfM~ .J<iI:~,,_;; 1
n/~r

E' - ,. "

jj - . ;£.1 l'L. - 1..... :n • _c(4~t;mJ .JJ~V'; .~, ..1

If)t)

SewteCSQPes,

.203 D~~~g_~:H~d ElI!!p~o'r~ecS :foF Cmil(lm:~[S :for :md The'lmpO;rtan~e of D~~g~ .204

2S0!3

D:iSc&-uss/.'()'nQutstiow20'6 Cast: Sm41 J.: .f)~lhi .Mett1o Rn.i1 CO'PrJl''{ui9.n 207 IJlwtr4tive ,auf SmJ~ 1: UJ,irJg SEaVQUAL Scal, 11ljjJtNtriv~CfM~StJuiJ 21: .A Stu4j'ofEJu&'rlti(),w:z.1 Sm;i" Providers
,Ii. Pmcess--==-Jhe Sevenlh P 2']4·

Till.:,C:us;Ii!Dlmels :I!:l~~nil: . ·ofVi.,ew 215 B,.~u~p:rlilldng 21:.5 'f reehnll~liJgy-A ..Boolli\I.o:rBan.,e 2'16 Mana.~meWai€img P\(i(!lCi~S 21.9 Us~ of blmrr.m,~uion T «JhID.O~om' un.. f£~lrung, Gr,t!a:~erClo~()e 22,0 O A Major SeNke'P~oQess: COBlpla~D[s IIJlalTIlaa.emeni[ :aJITl.dl. SefVi.ce Re.oo,ve.1IY22'1 Or,de:r Trik~~g <lindOwer Fu~rd~:"u:nt;Tw,!) Majo.r P:r,oe~ses 223 Su,mmary 224

DitcuniD"N Q'Ltuiom 216 Ctu:t' Stt~dy t-CRM a.t ATl 227 J: Cast' St:~ull2: AaQnis Mobile' HiJ;irD.nu(rI 9, IntcgJl!ted. S'emoe SI1'3tegy

251
237

G:rowth SU::ilteg,ie.so,r Servj,ce Businesses: f

.238

Qy~]ity Stf<ltegj,esfer SenrlcePhtle~ 241' Cuul')m!er SadsfucmDn Mt'3ls;ur,esand Thleir Use in~m.provwmlg: Sen~icc: P,crfOfm,iImlIGC .242 Servi~e .Pro,fim: Oballll~Linltirig .Emp~OIy'~ Sati~&aioll Mld Cus~omel' Satisfacrjonm Compru'IIy'rofirs 245

Strn,regy' for Mac~er Leaders .246 Stnuegi.es for Challengers 241


Stra~:egies :[orFo~lo\y:ers 247 SrJ3l'e;ies fOI1 Niche M,!uke:rers248 Sen1itre Pe.rfo,rmil!l:)OC Metrics .248

InnO'vation. d1Ji~: F~o'ntied Lwc:


D.UCLmlof~Qn~tio'fJs.

249

249

l~ 'Who Nt.tdt IT Products? St:r1liteJ,(l71e Su,rtmt 250 CaSt Stl'lay 2: Sn'l)lmll .MOtJt1 ,;nw Crmmiting 2$2 emt Study 3: ''DtJ;''!",n,fJvll,to"in IT:: ClU~St'UJi~fofAn'ule ilmi Pacsop 254 C4StSt~'"'14.~ NBPCw' 4' Bal,i: Kt'Jt(lk,M6JJindra~ StrRt'tgte SIIIji 2'56 C-IU~smdy 5,~.I"diunRniltf)ays at C'tJtr.riJ4as 260
Stllli}

Cast

rro'lnat'

Cast; Study 6.. Ph'(J"l S()ftwar~ 267' emt Srrui:; 7:: G~'J~ral El~an(,Comptmy 277 Gut Study 8: lti'i:linvn,;, .11. SfflJ,ic~sMarkitting
10. G,lobaUsation 'of Slrvi.c~ Globail:~(,ion
3JDd

C~St Sma,

282
290

Iadia

291

Pi.ve S~l\ges,,of(;;'~obQjHsa:tion. 295


Stand:3Ll)dis3rion.v'e~s1J5; wtoim isadon297 C Managing, Em.ploryeeslPilf't:o.e.l'S In me 'fO~S of GI:t),ballsatj,ofll .297 .D.iJalm(Jn: 'QtJ;~stiom .301 ~$t Study .1.7 Fdcto'rs D(tWllin.ing lnai/l:r GlohRJ C(fmpditiu~ntJf 302' Cnit Study .2.~ TIlt IJPO JnallJtry 30'4 I L Remilhl.G ill ladia ami .AiO'Wl.d tIlcWofili 312

R d' 1 At J, .. .. '. I d' R "·0 . u .. 1 , D" H • .'(1·'1.1: ·.:.c,(J.e.m·lla'IJ()~ m _"_'ltn . __~t4lf'ng.:Jl'lJa~g""UlarLd' i-Q'~19:r.mpe.cm;tJ .314 &ad;~g 2.~ Dtwlopin:g Profita6k Sh~ppingM4/4 3:27 D/SCUIlio'1J QfllJ:tiDIU 334

Intfodu.ctio111. 313 SkiDs N,eedcd fo·t Organised ItcccWing; 3,13

'Gut Stud, 2: C~/foe~ ca.orMt!' .341 T


C4reStwi, ..;. l"JiaRootlf
,Ca,g ,00,",-·

1Ca.r~$tmJ, r· C/'afflrxlt C;oSu;pmn41'1t~t' 336


A Mfl11ur Mal'kWrq:

StruJ.,V

on ,(jtnlino!

IRaQJ RdaiLingi4 5
j'j'3

,Care Stwly

·4:

UrJmnt: The RttailingJinigma

3$6
Lhljiccpr ofCI.M -1S7

CltM )'s'.S\lCS 958 CQSIQ.mrerVaJ.u;~ jjj' CRM ObjKtives 36'a Mmpl,e:mcmtilll CRM 363 elM: 'G~!lJI,ba~ Perspocd",e;s from.~e3Jrc;ber.sand CRM is d:tr .ruj:U",~Stelig£, J.Q;

Pr3Jcr:i:tlllllerS

.365

What [10 dobefo.reGoimg, Oo.~To"Ol'ile? 'Therrereq!Jlis:[~es Cwwm.e:f Rc:tcnd;ol1 is; llo'mEn'ougb 367 Disculsi:(j'n Questio.m 37.'
-· "'~l'" RtDJ""~"..:I..

List of erspectives

Perspective 1.1 Perspective Persp«cive Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective

Growth of Credit Cuds and Debit Cards in India Big Shot of IT Enabled erviccs (lTES) Does iu: Matter? HDFC Targe mall ities The Indian IT Market: New Segments Being Discovered? Segmenting Customers in the Travel Industry Targetting iche Markets: RdQ Shows the Way McDonald's' Indian Positioning tr:J.tegy Credit Cards in India: Defining Competition Innovation in Services What Mak Jassi Tick? Innovations in Credit Card: Co-branding, Bundling, Everyday usc Opportuniti Bundling In urance Products Concept Selling: The Case of Air2Web Branding Services: Tbe Case of BPCL From Software Services to oftware Produas: The Case of i-Rex Innovative Services: Konkan Railway Corpon_cion' roll-on, roU-off (ro-to) Service An Example of Financial Products: ING Vysya Mutual Fund Life Insurance Across the Counter, Anyone? Rdiaoce WebWorld Diversifies irs Service Mix' Foctls 00 Yaltle-added Servic~ at the Qutlets Coffee Day Plans to Set up 150 Kio ks by 2004 Fiye: Banks Share ATM Nc:rwork PNB Plans to Network 2,500 Branches by 2005 E-rickets fur Air Trayel Embedded Software T 001$ Maker Changes licensing Model Co-marketing at Petroleum Retail Oude Penetrating the Market with POS Terminal An Example of Promotion Objectives from Yahoo.com HDFC Standard Life: Adverri ing and Disuibution Promotions in Increasing Use: Case Studies from India and Abroad Promotion in [ncreasing Use: Case Studies from India and Ablo d

Perspective 1.2 GEt the


1.3
1.4

6
10

12
13

1.5
1.6 1.7 1.8

1.9 2.1 2.2 2.3


2.4 2.5

15 15 19 24

50 2 4
7
65 6S 66 67 9 69 117 ) 18 ] 19 ] 20 t 21 122 124 t6 138 142 147

2.6
2.7

Perspective 2.8 Perspective 2.9 Per pective 2.10 Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Perspective Persp«rive Perspective: 3.1 3.2 3.3 3.4

3.5
3.6 3.7 4.1 4.2 4.3 4.4

Copyng

ma

ta

P'ersp«ri¥e 5.1
Perspa::r.i¥c 5 ... 2 P'C,I'5IIXcti.v,e' (".1 Tacld.ing~mEe

Travdlers 182

Perspective ,6.2 :Per.spec:tiVle: ,6.3 P'ef5pcctive '0,,,4


P'erspectlve ,G·.S'

il'ersp«dve ,6.6 The Beauty 'Business: A People-Ori:eolied Busin~ ,o.r:a


B-Ji.1l]d~Ode,nted, s,u.s]n~~? "'\vlla!! d.o you. $111.)' Aflier you Sa1HeJ.l!oi~" Training fo"r'BetI;C'1 ],S2

Tefephlome Edgut'tre
Pers- CC1:iveS.I .. . .. . pe · -~.. ••. P'......... 1· ' 8 "'iI.' . ""~p",,,u'." ..
:I:.,

216 BH.r.ing¥:OUF Own [),rum:. An. Exam.ple from. Orha: GCf'ltt.lUl1H!D:C Servioes

Busin,eoSS: Process Reemgmeeri.ng P'erspe£dve8.3 :P'erspc,;;tive8.4 P'e.rspccfIv,c: '9" I P'erspecflve '9.'2 Taras 1:0 it Alone, Wnile Obem.1 Ties u.p with. HillrQ,Il. P'etsp€cdve '9.3 T:ai Ho~eLs Rope in Landor for ·Brand.R.estruauring Perspl:O~iveW.] Perspeet:h ..e~O.2 Perspecfi~e W.3, PefspecrivcW.4 Perspeoti:vcn 0.5 Pefspe(;ltiV'c ~.o.6

2UJ; 2:24

22.4:
241

246

198
300

ferspeClmtvc,. ~.O.7
fefspe:ori ... c ] 1.1 Sm.;!!! is BeautifY'I.::The Case ,ofth.e 8oobvo.re rhju. .shrank · Perspeol:hre i.l.2 ~1l1pulsi;veBlJyels: T.h.e P~:l'stl. 5 Seoonds, a:11~.Q'f.b!!::rTi.ps fo.1'Retailers Perspi!C!tive ] 1.3, ferspeot'i:v'(! .~1..4 P,ersp~ctiveson RetailiQs fmmKi:sborc Biyani, On.e ofind.ia's Leading .Retail M3,gloares

321

ferspecdve

] 1,,'
,I\. New' Age :Siank. :Bnmol.ll

323

Penpecilive ~2.J

Pcrspeoliv'c ]2.2
Perspeotive U.3

Urn T echnDlogJ' .Build ReI,-lll:i.OIlShips? ferspec-tive m:2.4 'Th:e Ulti.mm~ CRM Perspecifive ·~.2"5 b 3. Call Ceane ehe Beginning ~nd End ,of CRM? J?efspeouve ]2.6 Rai~ys Launch Loyaillty PropnLme for Ne£..Sa.vvy P~gers

,,64;
3,6,8

3619 3,72

Li:st olf Additional cases

Cue Study]

Ambrosia Ciuef.i.n.gServices (ACS)

3"76,
379

Cue StJudy 2 "B.MAI:L.~h,alle'l!1ges Ahead"

Case Srudy 3 B'aazee.co!m


~Srul1y4 ~e Blu~ D~n ExPf'e5S Srudy 5 Caf(! M'ClldJ3,

384
387

394
3'98

use Study ,6 Go AiI:Vt3.ysr---A N'M Pla.yc:rin. the low Cesr Segmenr


Que Study 7 HeaJ,e.l"·Hospiml Case Smdy 8 ICICldlir~oc;[.cC).m.'s; Online S.hlllJe Tmdin,g-· Am mmno·vatiiYC: Service Prod:.IlCl! Case Stud.), 9 Indian Ai [lines

4,1)3
408,

411
417

Case Study 10 .lassi J.aisi Koi Nahin 'Case Sfud,.. 11Weal:ch Managers for .Keral'a's RJdl.and Famous
Case Study 12 R,citaWl COllsultall'q': KSA-Tec:hnofak

422

428
433,
436

Case Study 13 Lost i.n the Lahyrindl Case Study 14 R>I!]iamce llfooo.mm-Pdce rhe Slice I
Case Study 15

Easy Ch:a:rg~A.ltelin::li.[~· Chan nels

4,3,9

Copyrighted material

Chapter .1

Prel1ude 'to, the Seve'n Pi'S olf Ser'viictes :Ms'rk,e'tiinlgl


I.ealr'lling Ob!lectlve's

In thts cha,pter, we~willl


p_ - _e a __ rn _0__ 0 _e _ >-;rov~d: -. ,-:11 ~--tlro,d- uction tc ss rvlces

» ,detaiil the
Igloods;i

maj,or d!iffere,ncles between sarvlces and

»
»
)0

,of'truth end the servucttcn lmod,el

present the: concepts o,f the servtce


l

theatre, moments

provlide~ ways ,of cllatssiifyin,lg s,e:rvlilces


:se,~ect~onnd positi:oni:ngfor services a

,exp,laiin the proces,s ,o,f.s,egmlentatilo,"" targe:t mariket

). lntroduca the' concepts 'of consumer behaviQIUlr, malrk.ettng research, CRM and deta imiiningl ~111the ·

cOI:nt,extof services

Copyrighted material

AN INTRGDIUCTION TO SEEIRYIICII:S
Goods and strvicltS: He .majo,.r mukemblle: entities!n. m.o~t cOlmmercial ac:t:ilv.ides. Though rille rmdi~ .,. ~I d ,e ••. f 11._ • h .RO'W ,e.xpml. d,ed 1'['$ ~oo,petOI .10: 'IJdle IiUW,11 poop e :<!Ill} .SOIO:O, n: , . . d' - '.:11 d . lS aOlliil. . tif.a;D.tt~QIIlI omarKiettmgas: ptimrul1y' goods 0'[ servicestbatmo!St· organ.ls3Jtioll5 Itry m mill.rkc:t:. Tmditi'D:Il:ally!, goods: have OC'al:pltd. a lot ,oF'paU: In acad!em.ic W\Ii':~ri,mg, 3S there wasgrow~ng ,dem:and.. for them, ill :m.ost: ofllhe p'revilcnls annul',

me

pardcmliarl:y in

me wariern"

dcv'doped wlorl·d. As the: gr,oMb, 1m.tbe muke,t forgpoos in: du: ~lev,el,Q:ped
row,ard:s .se:.Nkes,. The last· dec:ad,e; .in ,articular has seen tile
:i:5 d.t:l1C 110' the

worM gor:sa.rura£ed~,tbelr

1111ie1ldon. bas:£uf,ned

.mdsluQomi:ng ,of 'boo:.b, JO'Ii,trDah" ,~r,c. dCVOi£'ed corhe ·.mad~edmgof ,se:rviees', PaniY,rl'his

glioMnu; lliDponanc:e 'of .scl"Yi:ces in Ime~srOQ domesti!c pwdMor (GDP) IOif many' ,onnn[!f:iles a,1)(HLllnd Ute wodd,. As !of 201)3! maD)" de!!,r,~loped (~oI!llDrde$ seem ~~)t .h,,¥~10 !per 'Q~ntor h~gb~r of their G:DP ,I,?omlng :~iOI-- _e~. h.es. and. i ~ -.,_~I~: m -,-aDlllifiiJ""w-rin-'I:ms; sb··c.,~do-f- ,~ the deve[IJ-,lfi~' wo.rJd.- - -. - - -- India a:r;oli1fid [.!)_m s-n~·"~'-' --S!J~ ...- -~"-,G, nl!~ __ I,L ..., ---- - - . - - .P---g, - - ---- ~)"ie.fi ~n --~--SO :pe,[cent ofthe GDP n:QW COIlliU~~fnm rbcs:t;wice ~OCll'!iI:I:.
-<t -------

:in.du.s'tl'[~ whi.';b fas(;ma.Ii~i.l ~OJirgc !of~hcworld,!,Lftdh:oldthe pilrt· porenda:! for tran,s:Fo,rmin:g iJiworld, mrJ1ertDI ,do,mina!ted 'by' manufacru.r:in:g prow,cssl' H'o,wdol se"~GtS: ,get sold Of mat~ett:d.3ind. are there 3I1'lI)" Speci31.ll1odels~rlools, i3.nd. toci1n.iqureschat would enalbl!e USUg, ma.l'.kct dlfcm L • L "'111 'L ,..,ctter..) -Til.. I.mCSC alicso:meISSU.es tnat 'W'C' Wli. ~ eu.mJfIi(l: 'tnriOu;gnOllit .:IL· b 00 k '. mU . :P.HsI:ililld.fOfemOs;[llec: us cOMider dIe: major dIfmlienoes Iln~twee,.n,goodsmd..!tl'Viotsi .. h hasbeem. argued t_l:tac'(here :l!re DO millj:o.r diJierema.s belt'W,~en servlees mdg(Jods. ~ a Ire .. t ~. Q,f !iimilmty .~ bun foullld ~mthe' markfldmg ofbotmg,oods: and SfNi,w. On.e n:n. ,even '[bini<:ofb 3&.3. ,conri.nmu.mm:a£ bt,PIIS wi~:h IOO%'G,ood'5 ;!IIOQJC end"md :WO% scrviees a,'!:thc@,thcr. wiitihWil"ji01Ll<S: ,eo.mili.r:uldoills lm. lhetwlccn. p~~[:Oll"i:aD,.." could. be .rep:rC8cBlle,d as: i.m Fil~l" 1 .. .il:
WIlalrhellJ
;U~ th.C5~ s~n~'e
1

"I!_

IFig. 1.11 The Continuum


l

of Goods

,B.nd

Sti1l¥ices

BlOOds and services are m:aeasinB~f[lesemblJimg: eaeh olber" a few possi:b'l,e' dlffer'cnoes: 'between. same .se.rvkcs3l.llld goods dill re~mjliin. dlC m.OiSt p'.mm.i.mciM:ainOog, dlem. being (I) h~,gber i.l1tllll.Siilili,cy (b) la,ck of,;ihili.ry £:0 store them. for·fuwR: sale I(C) .pclitef inte"1lcdonbetween the CU$[)Q,me:r :and ehe servia :facrory Cd) grealer w'rblb~liry ill scrvloe:del.ivery, 31nd (e)' igr,e:lt1er vanabiU[J' anHJ:ng servltle! ,cwt:ome'IS expecm.d.o:.ns, These are discussall. beJow in g,r,ca.lll!f dcptill.

T.h:ougb mbePJiOOOises; of Imarkedn.g

IDifferences, lbetween Goods and Senices, II. Hi,lih,er Iinitan,lgibilitr Though. services hOI."",,, mlmy t3.n:giblc
DJghlt."achWmgfor a. faSlfoodKstaillrant do~n (apan &a,m the bu.ildifigilililm fur.lli.wl:e3Jn.di. se on),. theee is; an e~!emc.n[ (~.f[_he, serv:ilcewmdl , ,aoIl1poru:n ts ~ike airplanes :fO.f il. .sc!l"'.!!wllg :food. and.unifurms forpoopl.e in iii! ho~d.Ri:lCp'"

Copyrighted material

remains inramgible, This e~e,mem is usually the Idgher and more critical j,1l case of many services. The h.aircu[, a .scem:ingJy s~mIP~e5emce cain affioo~<It. mn,5l11mer ...ery ,deeply. :u1I,d. (h,e ,e,fIec[ 'of di!~ 11;11!i.trCllts feb~by him f€H:' sev,ernJ. days,. A I,awyer's: ooll.su!I[;1I!ri.ol1, ,or a cat service; ~I;as Iman,inmn,giMes, i ~oci:uedwi(h. i'[,i.n.a ~~m.i.lar ..One n1lay ,argue that goods like co'~ou.rTVs or 'Yeo p~ay(!rs.mar 00)'
J

alse h<li'ol'e YSl'!er~ow inmJl:gIbles ilifiod.u:ed. \vjlfh I[heir ~USi1ge; arciclI,l,:uly Foran a;IIerag.e nOIl~ll:'echni~· m p cal ,CIiJSliome:l'.l'Iln: :in many C'a:Se5, the intan .. gibles. are acwa~l, much. ;grc;uiI!l' fo:1' services 'thm for goods.

2. Lack of'Ab:ilityto, Sto:re Them lor F'utu,e~:S·a.ll:e M;3.l1y:ie.l'V~ces ann:!)!: be sJiored. fo.r .sall,e lnth.c future (for example" the ,emplY uf.line ~au;s ,on af1~ght,Of ,cmpfY chw:rs i:1l :i:llpruticuJru show
of it movie), These .iln~~ost sales" i!I.nd canner be milidleup, as in the case of soap' or de'ne:l"ge,llc (g'Oods) rhar can be stored amd sold the n!!Xi"merni .. g. AnO~!e::]i o:a.mpie m'lg~( be .::'1ecrJrici'r1supply, because m ~~,e<;triid.ty itsdlf 'Ol.nn.ot be stored ... It bas re be 3niLab:le from d~!e s,c:n'cl:.uiem system W:he:1I1i 1:h1i!i~l[e ~s need ~Dr it ~o 'be C:O!l~umed.,.Thi~ C'r'~t~ problems in h(l"dli~g miS:!ll<llrc:hesbet'lveen ehe dema.m:J and the supp!ly fo·[ SC'N.i res. We can recall severalplaces where we have to spend :long hournYiiW.ti.ng ~11 3. 'qlJ]ell,cfu,1:' a service, This ~sbecau:se ,1:uulihingwppJy .aml d~.",umd ,drpends.;1 l'ot ().1l tJJ't'tlbiitty ,(}/a .S'UtllClprellltln ttJtlTltid/Nltt ,orfot't.CIlJ.t atnum.d (o"~t-tlJ.tltltl,m'rJid4 thl·.lIIidi tiolla'i ,tl1p'l1eily 4f.ll';ng fa,,. Filii tk'nllnJp~ri(};IJ. The holida.y sped.a1 [rnill:1s, li"un by d.leIfI.dIalf'l. Raihw.ys to Calf,!!r' '['0 the holi,d;ll:.), rush is an e:amp.le of a service :,IlO''oI'iJd.eJ (the Railways" doin.g sOnl.echi.n .. aboUJI[ rh.iis,phlf:rlomenon. g

3. Greater

Ilnteracti:oOt betweenth,e Cusiom,er :and thei Seniice Fact:olrJ This implies rhe presence of [he customer ,airthe peinr of'ma!fu.il&ctlUll!e· ·of Ihc servlec, eilcher as an observer Of as a. parr.idpa!nr. For exam. ple, the ,cus(o.me:1' is neatby when food is beinl p'ri!plar~d in a resmunml:; or in '['he chalr when. a b3lrbe~ris cl1rrring :his hair, CUi(~bsen.i,n.g the .smlf .:ilt ·w,ol'.k wihe.£:!J WOIJ]t:i!l'g alt the; 3WrpOll: Of in fUght. iComp'u·,oo tothi:s, the cbtll_n~ of laJ!::!1 lavera~e censumer visir.iwg the manufactlltrirng she ()f a toiler :SDap me uses 3JIe:pn:[ry small, ThC::lfcfor,e, the service COnnUmfl' in maulY cases is :Iikely~o,be a: par[ of theservice facrory. dUlIn the goods~ eonsumer.

4,. Grea'te:r Va'ri,a1biliity inServi~e

d,!::lI'I'I;V'for of services t.hrougha a service will be .!lubs'ta.nri,aUydlWe.renr ~n ml.any cases, in ehe same service providefs

rh,;u human bein,p direct i:n[enll,cdom 1N:ith rhe cusmmers, there Me ,ehmces thatthe

De,liv'ery Du:e [0 dl.e faCT

w~an,

dcgJin~ wlhh

d.iffeu,i':ll[· USlomefS,. AI] hotel chec:k·-I!)!l:~r: C clerks de mot beha .... in the sarae manner, <Jill~wir:ef5;aee e no[' ,equally ,Polir,e. ::lindall :lJi,ir-hostesses are no! eqIJull.~yhospitable or ceurteoes, COmpared 1[0 d1!lS:, for maRY everyday good!s;, a soap is, rhe S1llme wherever YOIl 'bIlY it fl1O.m. In fa:er, several companies ~ulve real.iscd. (bis: probl.em "Y~[h .siC.rvke delivery •. :;lind. ha.y,c tried Ithd:r ben l{€Igive clI,s'tornel':S a SUlIldMdised. O{I' .s;emi,-standafd~st:d service •.u) the extent [poiSSibl,e • .McDonal,d·s, III am e>l:Mmple ~~rv:ke stal1ldrudi.~dl)n." whkhwe wiU look .u in srea~(e'rdetail l:a:Jcer of

meboo:t. The :HD.fC~; a d:ass:il::'exanlplc from the Indian 'QO.l1text. The ElMs .haYestamdard.ised ma:ny featureii m.f t!1,e'lli MB,A :p:liogrnmme.s. h~ must be s.aid, hQw~'er, (hat Ith~s problem co'uld. be eumed into 3Jn a:dvanfOii:ge br en.lierpdsing service providers wlho, ~onstmdr ilil.lilovate and. delig,lu: dH:i:r cusm:m.e.rs \yj.dt, .fH)·vel.rhID~ every rime elley' use rheir service. For example s'ahall'.t AiII' la.unc.hed a v;ui.efy' of profn'Dicions like ()i!~-bo~:rdliU!.I!Clions., lone.!), Sicbemes. etc. ~n ,ilJddidonto, the
jill
1

usual fi:.eqll.eJlIr fiilye.r proB,r.amme~ of (uht:1I' competiitors.They


cuslI)ome!'

used the valiabilicy

mC(Of

00 keep the

5;

m[ef't~:s[ auve,

.1'

Copyrighled material

5 .• Glreater· VariiabiUty .AIIiI,o:n,gS,ervic::e C:us,tume:rs,' Expectatiio:ns


'!V,",1J.lir[0 :

Rda~d some-

mlilly stage5 of sereiee deLivery". M:3Ii1Y times, [helle ere .1i10S'er measllJ;[,CS to d€:firnc tile IiWl l:ionsutue:n1:3 of good SC'fViG',c;. A two' m~nut~ wall 'U·(\ OOKliI.lficr ~1il<l:fMl: rood .1ie-SItl.\UJmlt mJ.1 b~pe,I:OOctfy OK :rol[ O.FL!Il:
prese:ll[ asereice
CUii[iOmel:1 b'Ill't

'tJt~:iF'lrangiblle5

In

pUl'c.h~ei In'he 'CI.lS[jO'I.lle:I'S:<U'e (~:'el1l, ery enxiousar v

amomer 10 walk out •. Ah!DJf hour ,d!eilny in a :banl: df:aft Dli1l)i'~:l'r~'Il'!.I[e one C!ilJsro:llleif'. W'be~31l:aD,Oll:ller: o:ne rna:y fi.n.d i.r perfectly ~o~enble" oreveDI expeor'ed! Goods, om the other hand, lIlSuall.y do 11;0·[: creaee dtese pfO:Mem~.A ,oomamer of 3! padel: .of L'1fS ,chipsp,!'obablf kmo,wswbat h.e is b lJylng. •. arul may be IJn,haPPf only lftbe:m isr,allgible rand .m:e.Mluabl.e damage fO [b.(:~ack:;,oe ift:bc dhiiPs :!UiC soggy. hi (!lIther werds, rlilc' ,QjsUI\me:rs" reaceions ;[U1t; more pl',t':dicmblJc.if p goods Me being 8014 rather ltbwn ifs.eMee& me be~og mm-kcl(;od. may·
CiJj'!iJlSJI!
r

iabls'1.1 • Airlillel • Courier service


" IHiotel

Exampl:ss'Ott ,Service

Bu!siIllSiSSBSi

• Medical services (ll'abs" I1Illspfllal!s. docto."s ,oonsul~ingl rooms) • IRetailing • Majn~Bnall'lQe amid niliPsirof equi,pm;ent. 'Qoo€ls. [homes. etc. .' 11'l1lfoJ!nilat:lo:n'-:e0hl1ology sBNi:oes • IAIID'seM!;es (:so,flwaJie', [11·IElIlsb!led Sari.

'. R.estaunml
• [Beauty saloon '. Theme, pa~k. • IMal'ke~jfilg1',6searcll1l II! A.dveltijsil1l~g

Yllces,)
.' PlrooLl'C1 desigllil QrJlildustriia'l des~gn

'. Consultancy
.. [Eduaaliolil, (sctU)()~s. coll:eges,tutomials)

'. Legai :serv:i~s

" Ba.n:kll1glservloes " Investment a(fvislngl • .A.OOQU,IiI.tiI1lQI tax :SeNioes andl

IFASTES,T ,GIROW.NG :S,ERVICES


Whi.,ch. are ime: :wres:1: gfowil:ll.g. service industries in ll1,(i:itill? J\coordin:gro a .su.rv~y cOl1.dliJic[C~d.by

me Cen-

fe:dleradon ofJ.ud us Ely AssocialM Cou.ndls ,(ASOON) in 2003, t,he fo[lo~:vi!lg tbree se"~oe oCt'Q£.Show,ed s me higbcs[ growth mtJes over Itbe 2002-1003 period~
'. CeUula_r l~home .se'l"'fioe •.which reeeeded l15per oentg;rowu'h •.
i

• Hous!n:g flinana.\vldl3' p~r oemtgwwth. <It_liId '. IT services, whkh reeorded 10 per centgro wcl1, 0.01.)' one service seetee, ~easi",g) hada neptj,',e ,g1l'owth ralieaooo:Fding:

[0

the

!lUl'VC'Y"·.

,Of 'CiIlI!J!.rse,these services may change from tim)!: '[0 tiline. bUI::Iovtuu iSFIelUlll'ka:hl.e 9JbOUI dl!eir ,growlb rntes lsrhal man.y ru~p()wl'ngat: mo!!)c than .20 p~Iic:ie:Qt OIl >r~ar, whi,ch, Ii!!f.u higher than r!hc oV~laU ,gl'uwth in dIe ooonomy as OJ '.. 'Wh!oWe. hus, some ofimeS!f' secrors are ,likely lD' 'bct:he ,If(ywth e:ng,ine:s:for lite Illd.ial1l T ,eCGnouty.

Copyrighted material

'0" D Pe:t:specDve 1..1 IGrowth of C,rediit: C,llrldls,


l

811i1rd

:D1ebiltCal:rdls, ilrllli'ndiiia '

The fo'lliowing ,e,xoorpl from an intelView' with Mr. Santa,flu Mlukherj;ee, Vi,sa~s 'OOUl1itry manag:erfbr South Asiia 'eiabol1'ltes ,on a number 10f' issues, relatin'g 10 paymonit ,carols.

Ho'w is 'Vi-sadoing iii,nllindia, and What ii:5'the IG"owth IPlllan?


I'ndiia is, :shiningfor 'Visa., Tlhlsre ,arneroughly ,abcml 33 milliion 'Visa 'calrd ho:llders in hilldl:a. Our marke't share in II[ndia by purchase volumes, is 70 pelf cent ,against MasiterCard. I'r you inc!I:l.!Ide' Amerioan 'Expresscards'li our market share woul'd bel about [64-6,5 pet cent TIm,evolume ,of'transactiDImI SiS 'on Ss'ptember ,;;lOOS was $'11.2 bHliomJl. Th,e numbelf 0'[ Visa eard Iholdelrs has been gll'lowing ,at about. fc'Ughlly11 per' eent, oompo,!!.mded annuallily' dUrringl tJhelast'oUir )f,ears. In terlns 'o,f purchase vollume, the, compounded annuat growth is roug:hly iEilboul 50 pier cent. Vils3 stanted lo'lf as a credEI~card oompany, but is now a mo~e ,diiv,ersiified paymlent company. No'W we hav,e debit ,card, pre-paid card an,d :smart 'CBl'\d. In.dia an.d ·S,o'l.l'thAsii,an Icouli1tr~es are' some of the fa&t.es,~ gro,win,g mark/Ens: iin Visa,'!s world. The onll, oill'er country"thelt could Ipossibl" be growing at ,8 fas/te'l!"mtel 'lhan ,India, is Chii'l18. llllli1Idia also p:r,etty much an iincubat:or of' new ide'Bs ,and: iinnorVati()ililIS. Sloma ,olf is, th61SIiI' ii'nno,v,aliol1s like Visa IBiII~iPay or Vli'sa MCIlnE!:y'l'mns,ler (ihs,t, aUaws,lransfer of' money to alniYviS;i!llcalrel in India), M-cheqlue, (p'syment by' mobUe' phone), have come' oul: o,f Iindma. IFor example. Visa Money Trans'felr, which was 'Hirst introduced iin I'ndiia,.is, now ge:ling 1l',Bunchedin AsiseP',ac-ifi'c ,and other palts ,of the wo~ld.

'Is 'the' AC'C8iptan ce' of E,I:ectIFiOlnic Playmenl


l

Pi,ckiing

till Pi iill1Smlaller

T'O'WIOlS?

That j:s averysigilificant chang,S! In the 'Ilast 4-!-5,~e'ars,. 'Over the last.fe;wyears" debit calrds~ha[taocountedfoli ,(miIY lhree' per celnlt CI,fvollum-es of.calld pillm::hases now ,account for ,80 per oont. Thalt iisibseause while the oredli't can:lls,issuable popu~,aUon [is,estimated te be 3G-401 million, we can iSEUJe debit cards 10 Jiusl,about anl)'onel wl~hl a Ib'ank ,account. ,Jlus,t'four or fi,ve yea!::s ag,o, ,credit. ca.rds 'were I~es'llii,ctedte about 8-10 to,p ,cities. Today" ,cards are being is,suecJ......de'b~t.'credit, prepaid-in mrer 100 c!lties,. 'Whits, the ISlrger pSlrt ,of the spends, oontl'nus, 111'the, top 10 c~ties'll' people, tn 'thel ti:er·,n and 1l1lidillies ali'S' gBiHlln,g more ~almmall' wHh IPlas,tic cards, 'W'e are :see];ng asaent re:vo'IUitlo'llrtaklng place. whe'l'ie ca~ds, am' acluaUy mo,vingl out 1,0 maii:nstre.amll:ndia. ,Another imlllm1antihingihall ~5, ,appe,nlng ii'son the pr&-pai'di sidel. Prepaid populatl'on h can be even ISlrger. Wherreas, 'ta~glet pop'UlaUon for cl1edit and deb" cards, woul~d be aroond 200 million i there a.[ie ,alb 400 million who don't have access to ,9 banlk out ,account. These are micro--finaneel type, of',olients 'Wlners prepaid' willi eta,Ft. makIngl ;anenb'y,.
1

Copy rig te

materia

rotc

Mark lin

Is the Growth of ATM Networks Keeping Pace with the Growth of Cards?
There are about 20,000 ATMs in the country today against 5,000 just four years ago. Large players such as S81 and ICICI Bank have been investing huge amounts in ATMs that are connected to the Visa network. But the power of the cards is not merely In ATMs but in merchant establishments. So, while you can use a card only at 20,000 ATMs, you can use it in over ',80,000 point of sale terminals. That is also growing significantly. In the next 12 months this could go up to 2,50,000 PaS devices in the country. Banks are also making forays into Tler-Il cities where they have been installing terminals .
• our c: 'India omongfoste.
1 growtug

mark

lor'

«':

Y arb

~CCI

n. Bu

IIIC:X

lin '.

nu

_7.2

IT Enabled Services
The bi rowth in re cnt lim' calk of (he i ( IT play rs an Indi en bled crvi es in India. The ollowin box

Prp

ti

.2

GE the Big Shot of IT Enabled Services (ITES)


GE Caps, Citigroup, Daksh and CustomerAsset are the top players in the ITES (call centres, back office operations) industry in India. GE has 6,500 seat capacity, while Citlgroup has about 3000. The other two have' 000 each. Raman Roy of Spectramind says their biggest competition is not from other Indian contact centres but from the US companies setting up captive units. GE Caps has since been divested by General Electric company, and the BPO is now called GenpacL

our

: The E onomi

Tim . I De

mber.20

I)

The Service Experience

n luding th c
n tirurc

th

rovid r whil

und rr kc
ran

sm,tion, the ease of :Iinding you~1: 5lC3,t, [ihe co-pas:seng:=-I:S' behavlour <lLnd3iP[p~rn!lc~, t_h!: OIIy,ailabiliry of food" 'rhe ,on~t:ime ,dcpa,rru:re aruJi arrival of Irhe rnin. and m;a_J::!!Y orh,er feal'ure.s m,ilkc up It_h.e ro'[:a~ ex,lPeriellllCCora railway journey fom"(he consumee, Some more ex,pe,l"i,en,oe5 could be ,rela[l00, '00 ,carrying and sooring lluggage o,r findinga. porter '1::0 help carry ir, Fo,1'these reasans, ,il:: is 31p,:l1oprj,areto, think ,of a sef\l'[ce as: an expc,rienoe Ciom.pd.d~g, Dl<tn,cug~bf~! intMl!gibl~.pr'~<;~:s~ Md ,enC:OIUntrC;:fS,. Some O'[her pOpUlalEwa:ys 0,( ~oo,k;n.g,ai't services have been: L 1M. M:om.cou ,of Tmtb,; This phrase was popwlu,ked by dte CEO ,of Scamruaavhm, Airlwes" J.:m Ca_ibo:~. He ~d th,a.r ""II ~:n!G;Q:untersQr tmns:acdon:;; w.herethe CU:5to'ffiier in[iemel1ed \:»r:ldl the eompaJI)' (anyon.e I!cprC'Sefui.ngid were 'mom.co.ts ,of truth' ,th:ililtm.!l:!u'lded. the cw:t.omc:r·:s. op,in.io,.n abOln the comp'.tuy. He said if these m.omCJ!l.rts could be well-mana.ged), '[he fteSlJ]r'\Yo'l:l~d.be: a ,gfe3.r servj,ce ,oompmy. anda D3!pPY C:W£iQlJ1ei"'. 2. Iu die Se.nuctiio,oModcll, pOlpuJarised by Bareson: This St3t1e5 tna;[ rhere are two IOO:ID.pOinenrs-. ~'he 'visible aAd the i.nvisib:l~n d~e seNiec pwvider',s eftd, eompd:dng bo:th ,pcopl:e ,and, iloamlmllje en;v~.l'om.m!en:t 'The customer inrcnlI.cts wirh m,ensibfe parr of (his Sl:nep'. and wi.t:h. f),the'jj IC:USIt0m~rsl
presem there :at:,the same lime. Theinanim.afe envirolllment is simiLar

tD the

cm"g~bleel.emeJlts

tha.1i:

Yli'1i.;:hatvemc;·ncioO!l;'dea:r~ier. Since 31,Ia:l'gc part 0'£ !ie:.nd~ nre rnltruJ~ble. there maybea Ilende:nq (,0' Gr:a,w co:nc.I.lmions :iIJ,bOltl[ the' service 'quaJ.ity based on. a :Iook alt dlle fatilgib1es .. For ~mple" a. pro~CI.f·S room or .his appearance' ma)f be used by students as imdicamrs tOf llow we:tl hl~is, leach~

1. As

ing"'·,

me SeMce Tbe;:f::re:: This aspect j,m.p.lies (lompzu'ing dle lexpe,rie.n:oe 'of se.rvioe plan.l1i.lng;, design. ana. delivery [0' rhat (I,r a rhearrical perfo (m3!llce. E~e·.menlsIchat theauc:hors (Srepllien. GW'Ye and Ra)'lml:Hld Fis.k" linld similmr i:1l the l['Woactj~~,des 011:' leJ(pef[t,l!liGCS 3i.cU)I[S .M"e (visib:lc :!iIl!.W~Ci!! providers ~n contace with ,cus[()m~n}! 'teaill'lwo~li'.koffOO.nut.lgean!d bru:bta:~ peQiP~!e iOlhes:u(i:(le'ss ofa ~.perfor-'
l

ma_nee"(se'f'j!ke task), and im.p'!\C'SsioRIma:nag,emenli.ndudi.ng, prior communication, about tbe servi;ce.• man3!gin,g; expecr9.lti:ons ,of rhe cws[omer' and cJ!'eal[~:l!lg, n limpacl' wh:h .IIi, sineere and .cff«l[ivlc a perfol[ma!llloe. The authors f'Odthat if a service providew f.<lkes the S<!!mecare Ima.t' :3J drama produar
j

dees . m

L.

~Ia;n.·

dl" t he 109

cust:omers"'~· . 4,•. .As the P'laying Oue ,of ,iI,Ro:l.eas per a, Script: Somewha,r!ii,milfll.~"ro the abov,e. rhere is 3! vjew I:h,a( sl!.l'V.ices be treatedas ~ .script ~IOI e plil),yed QU't' b,rrhe service p'I'I(lV'i:ckl: ruld the customer. Iflmese: can b
roles are pla.ycd ac()cmiingro [h.e S(;;Ii'Ii.pII::. i[ creates
OJ

JlI'a" I UIII'fl:,el1lt e. ernents

'I):r UI,e SlCIi'VI(le aperi!eno:::',

.C' _l.

.'

..0.

i,1: WI.u tesu t lin

01111

].

" (1' :rn.oi:t: sansdcu;

111

saw:fied customer and service provide-F. For

example, lma classreorn setting. it ls: lunderstood dl~uateach:er is in cilMge, and the' rules: ar,t ~.aidout by Mm. Bd~t~f srtudent [tansg,esses his rele andi, m~sbd13:ves,. the service cxjperi,e:nl:t: goes bad for a
bodl.mesmdlen'[:a._nd reacher, 'The :53..ID,1; could h:Jppen in anelrline. where 3! drunken pasS(':nger misbeh;@,vcswilh ill co·'p~ellg~,1: 'Of an empl.(III)'lee, le<ilding to <II. beh;a,vioiIU 'W:hich is not a;s:pc:;r bis role
Olr

theseEip:r'"''''''·.

'0' FOIrm.or~'on iliis model, 'p1~e I'i{:f~.J:'Il!}1hc :bookN,()mrmi (J1TroID' by Jam 'Udwfi 1(1987. B'I:Ui!lg~[. New York). t ""., D:c:t'lii]::;Qf d'L~ mmicl .g.(I be: :ruY!l!di l~ the beak Mt1uiah ofSttfli(rJ AlttMttilil byHQWm~lI and B~lesfil:l (2002,

Tl1oirnmll,~So1nh Wcstern. Si.i1g.i:pGm) • F,(!I!l:DlOI"C on I.h.is mod'::l. pl~ f.cad. SmJkt TIJ~{ljn:A,~ A11111]:iie..4iFfflmrwo.~ fo, &wi(;tS Mln"~ting by Gro~ and . Fi!iik. inrnc book Sttroir:a M .... rA:a;"'gbI)'Lo,tt~ock (Founb Edidon" "(Irnua: HalIl,.USA; 200 1). ....... For mo.fC on r.hi:s..fiewof~Nkes:, see So~oimo.Oi,. M'.R•• S!!l!P~iIl.aIlt," C.F. ~('pid, J.A. &: G<J!tmMl, .E.G. (l9S5), ''"A Et.ol~ Theory Pers·p~i1o\e on [)yad.i.ehnerudoflls: The .SC'l'Vicc:' EIIlICllJUWliCr~ jO/lnl .... loIMarketlllf> ,I. 00.49. Winter" Pil" 99HI.
....,"'
1

Copyrighted material

C!LASSIFYIN'G SER~IC:E.S,
Tbeprominen,t

'Of dMS:ifyillg; 5'r:rv~oesinclude: ],. The dVeC! ,of If3JnG:~b~llifY'ofrne serv.i.a


'W<l!ys
Sit

2:. Whlerhre'[' the ,5e:",ilce is directed

me cus[om,er olr hls plS<Se5Si.O:DS

3. The time and place of s(!lrYioe delivery


4. level ,of CU5lnomi5aldon, !j!'~JSl!lS srruldaE:rdI5~do'n, 5" :f'of:,mai, 'o,rmform,al relationship 'wi'tih. >(;'U;s:tomi:::I:',s, 6,. Extent '[0 which demand and. Sli1pp:~yflluctua:tr: T, :~mfiemcdon Wi'N~ people or' inanimatE object/,cn:'l,i.l!IJ.I1Il1IC'.nt

,As we Ita,ve dIscusS!ed,e:adie:r, S(1)',M!e :5i~rvices <1lfC mo.ftitM:gib:le thall ,oth~f:S.,Fol' c:x:amp!.1!'1 ,rille food: ,in. a, ren:aunun is ill, t;mg~blc tb~,n~,r.hDugh d1e'servke pan m3!)"11I!Dl:be. The ,elfec! of 3. rt.s tau rruJI I visb Inay be Un~ed ""ttll Ilbern:ngible i:["ems :alf:ld l~be ,$'3;risJal:tio'n,de\l",ivsd &0., r,hl!m. But: i.n a, oO,lI1sul:talli1rt"s job~ ,a.~Qt of

timings r,cmab,. int3lJlgi.Me: €'Y\tlG, alier (be


, -0';[ ,.:;af, , fi I0 rorw~,,'F ,Y-tL __ __ c .'!!<li," '9r~nt '()If

oollsuh;3!1'lC,Y

IS

,ov,er. SlmUu[y" imth.e ear .n;u~cltaA~ci':s ervldJnI of ~


D~a- ~-mt..s !:_._~ c:, ,"otdd be d::lfif:JJ g on rvi ,ffCrc: "" !: __ as5
1,li1""t:1' !ill_,"",_

he bas !;,Lllt n:mil_c ~o-c~ - ---imslI1uho,·;ibuL·m.LJ: .. o--hi..

degfii!e ,of t3J~g~h1HICY. or [H.ls, P'ossessiansi

Wh,stih,er ,the, BeArce iis,[Diirect:ed[at ih,e Clulstomer

This Qil be: :I. b:lisi5: for eI:us~Hcadcu~. s,ih.c~ SO.nu': ,sen:iees iIIre perf'O,rmcd. (ulIth,e atS'tOIlit~f ,@!:wi,thhi,$: ,p:aJ1ddpa:riolll as: 31.PMC of the seRiiClC d.eliv!eryi' OIlS .in, r,be ease of a, haircur. hoeel check-In, eee, Om rhe other hand. ,some are I",Fo,vided t~)his IlIQSsessio:ns s,!1I!ch as Qr;. camera ,or TV ,f!eprur-s. r
,£,
Ij

The location ,canbc' eit'her the '.erviee p'fo'lilder'sl.oca'tion


00:1l'1:'1I01 has '[0

o,r the' CWEOmer's home or office. 'The pest

she. ~n~t s~fCw~l:'eservk'es; can be ROiW provIded via. [ort:e:lillet foom ~n.ylocat1oll. Silnilai~)r. med:i,ca~ ,ope.mrions ~'ul",e' rIO be pl!~rionlled a[ s,pedfic sires rec~m.Dlended iby dE doetor,
(l)U

be

Se,rv.ices aJl,be cus:[:om.i$~d,~like a rhemebirthdarpart;r at 31. h,Oi[lel Ofl:(;5'G:liUlrallt. or srandardlsed, m ..iC 31. i$tli.:.nd,ludm.eaI, ar i!! !iQ'ln_h Indian r~rn'Uro~:}t', Some s~r\lk:e~ rendto be: m.ore customised, e b.v.ryc:r,s' o,r dOCltOf-S' 00 rnSuill('3:[:iom:Ii , '~hcr~ these days" Eh.ere ~,I'e aJ. few :stalldaJd~,edserv:iees, ~meso:me !ef NUT's: O(!l,m,pUl1er courses. or a. M,cDo.nald'~mCIlIi1,1n~,biemce 3ind sefi:lice'p'<iJt~m.

m..

'GeillcmJlYil enttyto

'C~ubs req1J!,~rcforma:] membership, 'The Disneywiorld ora movie theatre ,only requires :peop,le "0 buya l[k:kert fo·r ,enrry'",'whh .no li'ie;Qo:rd of dli! .na.nle of the: customer" 0:1' aJl)" pardiculal"s. The 'Ee:lepbome mdl electricity sup[plyilil(;,clilmparnIesreqll.ifl: your name. address :lind.odler pardcll_l.ars. NoW'ad~ys, [he pracOtioD,eiFs of cw,[omer :~d;,ti.C!lnship.mar:l:ag,emelu (CRM)., mostl.)" tb,e servieecempanies, try

Copyrighted material

<!tndcollect ~:Ic;v,a!lt i:nf:orm.uion f[,~m. ,ev,eryclIstower,an.d. IElf to l1S'1! it to din:ot specific c3cmpaip:s at SJom.e ,sub:S'i!(of IhE'Si~. wh.w,oo~dd be a,l'31'"S,et I1UlirkiC,l' fo,t ,Q, ;~~cn obJ,e,cri,YI:'. Seme ent:c:rp:ri~in:G, comp,atlies eViel1. sel~~rhese <tdld~ n$f,s· IJ~~mselv~; 0Ii:Iii a 'proch,l!ct",

,lxienlt 10 Wbich Demand and SE.llppl,Fluctuate~


~mc se:rv,iceshave SCt.ldy Idem,ln:d, .~.i,ke d,61l\r.n,~I!iIWIi1r:esm1!Jlm'llt,Sam.:: omeliS have 3;, highl, a fb.J:cmili1uin;g dc;:m<md.bas~ '!lI1l the d,m.~ of d~e day. ,or swo,n" I!!(C. mc:eelecu'kpow,er. the meni1l.:nd for IIL'h' .J "h ~1L1i.. I . 'h I' d" . ~ .J' d'-" f Wnlc ,I,nc~ ,or aecreases WII::"me WC'Un(!l". rn nOI1, , ,In· ran p IaImi, ,ceo~,el:; aln], :;urcom 'nHnlers; are' '0'.
PO!f lexamp'le.

gmar d:em.and iin, d'H~ hermenehs,


~'thel is mOI'C; !:easoln<1!IbI~. a]so luctuat'e5 ,ac(:o'rding~y,

a:nrd ,room ~heate:lrs :io, th,! Wi,tHer ,m,()II'I.th5:. In rhe SQluth",geillem'llY,,1 Ithe excelpt Fo.ra eDll!.lp~(" ,of months of.hle~u:;Il, ,A"p,r~[and May. Thlc p<Ji'!lVcrdemand

Some trarnsaotloBS could be do:neoflil the pb.o,nle. ~[ke'~)rdelri.filg,a n~w ,Ch'ClqIIlCbook. ('fern. a privil!t:cs~torr

'bank. OC3 mademised publlic:,slecmr b3!nk. Oehees .n.eedl:h.e p'fesence of tbe euseemer on, sl[e~ Uke fi3Jdng a. fI,Igb'[ ,Dr ea[~nG 'o'lJlr:.Depe:nding, on! th~ I:ewel. ;]Ind. :f"ftquellC}f' 'of [be cus,~omc:r CQIIli'mC:iII: cqu.j':red. 'D'ne ca'n r
"" '_'
'_

rdass:ifY!!:Moes :iIUIOd.if[elien.ltal~g().ries" Theee may' be' m,ixed m0de~s; where seme 'OOI:1![;}C[isneeded bu[ : " mJtf d'uucl1e euseomer is Oil his own, ~ike.3.!filsE: food :lic.lf·sji:,rv.ice medel; The lllsleru~llless f these dilS!dfiicadons 'Oil: f}"OliOI~es: ,(!If services d.epe;nds O'l'OO how we use ILblem. U '!!lSOO o

sttaregicalJy~ fo'l:'example ill maJldng. choices of which ,senrke m:3!:rketsIJO' ~nl:er, tihey m.ay po:iru
[~!!!W

'OUt

area

Ui ~

'co fit OOfEl:pe(erUCe3re3 mf [u,erU:m

"II"~

I!..

[fthe

'CU:

nor,

ITP, OR TIH~ESTRATEG,IC: ,ASPECTS ,OF SIiRYICES M1ARKETINGI


Wew~11now takeu!" chle s'[rntcgj,cpart of the ~ervioe.s:m,ark!tE:in,g3:flea
I • iIl:'T'P' I • CilasSiU::: ", "~~~gmt'Hf;a[UI:n, I..,".l·· Em,ge[: Al3i'l'tii,CflIin:g ann

'.,., • ~-, ,', ~I posluonlo61 aspec~s OJ·f' 5!Crvl!,;oes. 'T'!.. lI'Iilfr!ilC[W!t1:g 10f. pr!1lg~ ,~I!:' :lI!CJ[$ alisoin.vol,ve5 r.hese~[epsj' as YOlli w{lu~d beaware if YOI!!I h~d, ~n::liJkeidng lB3.!Il3!geOlle!ll'[ 11 'Oillll!'l!fS'l': befere [his one ..Ou,r ,em,phas'isw.iU be on. imdlngD1llII:tbe reasons fcJr Ith.e'senl'[ces l:e'.lldlmg, to he d~:Rerer:u: f dmeB, a 3J"td we win ([)Cu.som Indian ~efY.kle examples mese of dlC dille ..

.• t'hrou,gh 91, iiscw.silQI1 d

,oel1tn.:.d. all the

Segrnenltin:gthe Service Market


l:mag:iue that you. were an ,en.tfJepllenCUf with assured fWldillg, from a bank, and
'!V!3!lltiecl

testare

a new

service business. The reason for ,sranin:G ~ service busmess ceuld be YO'UI!' bdiief dl<lt seriioe.sUle more ,pfo.fitiMe iill. the II(JrIJlg How would you goabolJ,[liI.i.swk (If idtc:ntifying:a new business;? run. Mo,s'[' likely, you ~:vouldhave 1:0 begi1n bi)' dlecidingwbo,.m yo,u vm.nt "0 :r:l:1aEket YOUfSlfrvi,ce tD', It is possible [hat ~ome weU-defiaed gOOllJpi5i OF ~:es,mc;:nrsalready exis~' ill the' btusiiness area [,mart ),'0'0 have iden.tHied .•.fo!: ex;.unple. ifY'11)1lwant 110StOln a hlC)td in GOi!l!. tbert :run:rwoDI!'Qad seg,me:nl$ one an :readiJ" i.magjn~t()ll'l'i!ts and blllSines:5 tjl:'3!",:eUers.,Ho,wev~r!, dles:e broad. unll[$ could alsobe s'egmen.tiea, ba ed,o.1iI odl.e:F ,'tnIiaJbles,. foOr eumple, dlle ,d,omesrieve[:5,gs fl!1!lfd,gn clieo[;s), male or .Ee~naleC!!fSTOmenl, or yOUlll~:i!!~l:!i m.lddlle-aged.and o~d alSI;iOill;f!rs:. Theseue aUv~lid wa,Ysof sepmefirtl.ng your po;tlenoal d~cluel('.

Copyrighted material

Some of Ithe l(:ommo:nIYIIJSe;d.s.lenmdcul varhbl,e5

3l[\t:

Type:: Insdrudon:d or corporate cw[omefs/lndi'Vldua~s


Age: .KicblT,ee:na:ge.I'8JYoW"lg ad.i.Jdr.s/M[dcll.e.,~djlOId
Su: .MaleJfem.aJe
1 ,

lanp:ag~Spok~n,
ImcomcLevcW: Rupees per mo:ruh (less 'chan 5000 500 1-10000
etc.) 'K&.rem~;:~.mdoof
1 ]

'OOOl~2I)OOO,more' (han 20000.

PersomaUtyT",es: ",rof~ion:

acdviltes, Ou.rd.OC!l'1' acmvides Inn-'ov,cK. auoven or other ,dwUlouiom:

Eih.wc ba~kgroiUfldls:taJtel~iop: A.rdwd.e


'tOIw::ud,s

Kon:kani. Bengal.i. SotIJl,h I ndian; Marwa.ri>e~c:.

Salaried, Ibl:si,nessperson, Arli:sr:~ Lawyer. Doctor, etc, RiSk: R:i~,ktaker, rislic:avc.rse,eIH:;.

RumJUrbm

S~eml. I(H:her ",ariab~es vou.ldailso b~ used to segpi]ellll the cus~om.e.rs: .r potel1lria!l,custome.rs. But th,qr o shou]d bcrde'famtUll thes!I!:rvla' which 'VI: are g.ain,! ~o market. T.he slegmlCllt:ation ~tlables can. briQa&i.y
be claissi:fi:ed :il'u:o duet' [)'pes: t, De.mogmpbk

2.
3.

p.srch,(J'graphic
Bch.avi.o'llJl,rnl

f!@'fSpetnVe 1.3, Does, Size Matter? HDFC: TargetsSlmalll1 Cities


HI:IFC OI1CB'h'cui (II) per otml. of its business oomirngl t(1utof ~hJemetl1()~:i..l\I'ow, i.t is dowlili to 50 per oent .And ijt ma,y go dOWlIiII~iLlrthfn iillllhe, da.ys to oome'" TIM,isis becauselh.e l1.oLl.sin~gllloan provide,l' hlas 'targleHed :smaller' ,cmes, a:nc!lltowns, for 'future: growth. Th.()IJQIIlthe, average, slile oflhe1lnousiln,g loan (HIDF'C's seNj,ce proou:c~) is: smalll'ertihere,,~h,ere is a lot IlJf untapped ma,met .. Some' towns be'ingi larglettedfor ns,w offices ilIlie IN,e·lior6" Tutioori:n. Pondcl1ol1}' and Qullo:n. CLllifelirlly. MelFe has 22 aHiioes iliIllld 1:50 s19irvlce oentres acros·s llndia.

SIEC: Gridl for S.egmenrtins· CllIlst.o.me:rs


There is an aile'lilllatrve segf£ll,em.'t3nio:n m.et.h.ClId.called [he secie-eeoneeric cloosiliicadoQ (SEC), pop'ulaJc w:ith marketers orbgdlgQod~ and. services. Thi~is ill mSiu~x or grid which clJm'Dines infor:m~u.j:on a:bol1t a

c!ls[o'mer's. occ:upai'don and 'edueati.on .Iev,el. and. is aJ.ledtbe SEC level of rhe indi"iduaL This!s 5o,me~ times, I~ed. asa substjrure for inco mc" based. sl!gmelll'tatitOril by milf.~etiJ'iI,g researeh eo m.pliUII. ies, wh,ile eo.l~
.Iecdng d~e' dsra .. The :adva.rn~a,gc:of rhe SEC aooo.l:ldl:ng: to .ma.rktel:ing r,esea.:tehe:rs.is thalir _!I • _j .• 'II '-I L • B ·d- .. -ld-·I'1· :ilI.c:ru:ra~c aila on o<::rupatlon ana eml!l,carU:HlI ,eve. [Clam 101ftIncome. ··esl· Ie'S, III: COlli.' renece
_I

is e:l8~e:rto ,get al.. 'Il fe···. .lilY' Ulett~r' as

Copyrighted material

tbe pe,("son's ,asp,jrat'ions ror 'Oertain. P'fOOUCFS orr services could be ~inked '00 his SEC rather tfua:niru;:{iI'me alone. The following stcd:om gives midea ofwh2rthe "allegories leek ~,ike.The SEC griditselHs shown in Fig. 1.2. This grid 21p,p:,li~s 10 tme '[ndjanli1,rbamh,ow~:h,olds! and, has been formlull3;leo by d,e mndiLn MaJfke[: Resear,ch Soci,l!lJ'.,h is based. 011, a sim:ibLr SEC Gridi developed iU'I1,(hcr oo'Ull1ruies:" but' h.as: been
adapreQ ~o the I,odiu, (lon',ext.

, UmiskiTl'edi worker

IE2

E2

IEl

rDl

rD

[),

[)1

Bus'inessmarV

No ,omplo,ye:es

Indll.lstliiatistwith

5
6,

'D

B2 18,2

at
1511
A:2
I~

1<2:

A2 A1:

A1 A11 ,A.,I

Se~f empl'(.1ly9d
profassioll1la~

1 51:

JEn
D

IB2

.NJ.
~

At
131

KJ.:

A11

A11

14

101
Supervis.ory I~e""el 10 Junior 11
ExecutivesJ Officers

0
IC C

c
C

B2!
B:~
,13"

IS1

e1]
,K}.

D
C 91"

B2
81

51

.A2 ,1\1

Ni.
A11
-

Ml:dd~e/S'enlor EJot!&C1!.!ti'ves/
Officers

12 91

e,

A2

F,eatUll"'es of the

sec C~!assifica.tion

.' It'sa dassi6eadon

,of u~bal:lh:ou.senolds. and Irnelc are ei,ghc categories:in'folvcd :in h. Al de:nollt.'l £h,elJiPpermostcllSs:. and. E2 t!he .IICiI'west .s;od,o·e(lo.nomi,c class, The' ei,g~l:classes are: A ~. ,M, II, m ,B:!,

C. D", El, El. '.' The education, and occupation indicaeors are these ofth,e chief wa,ge ear,ner.lfhe is retIred" the!;llthc ooc!!I,3Jt:ion. before .retire'ment is CllI1l5:id.ered. fo.rdu:; d:usi.na,don." '.' A subse;(: widlJ.ll, A I ~s ,the class A'l '<t. comprisi.lilJ8 hOW!e:l:to'lds which bel(lIllg 1)0 SEC .A1; wmer;f Idle m:J1o:l1tb]y h:ous~h.old income is abo'lf~Rs 1 0,001)..
1

Estima,ted Slz,e of the different SEC Groups; The


,ego:rilcs. a«ording to,

e5ci.m:;Ul;!d.fl!1;es of db!;;vruiOIlS S.EC on:1.1.

the Nardonal Rcadcrshjp

Suwcy (NItS) 2000, have becilillgili'iem ~.nTable

Ccpvriqhted material

" ••

,!Ii"

12

ru

ark tmg Size of Various SEC Categories NRS 2000' Total Unweighted Sample: 1,96,540

Table 1.2

Total Households

('ODDs)

SECA1 +

All Urban 52783 1167 2383 6032 10110 11789


11664

Top 8 Metros 14148 631 1018 2083 2767 3433 3005 2861

2.2 .5 11.4 19.2 22.3 22.1 25.0

4.5 7.2 14.7 19.6 24.3


21.2

A1
A1/A2

BlIB2

C 0 E1/E2

13188

20.2

Segmenting
ervi

Institutional
like

Customers
I ustorners. Th in rirurional cu romer
can urrher be c mente

re old ro an rirurion

u in' typ Ii·


I.

fr

given period)

2.

I p rw rk mrnitrees)

nr a c)

000

rp

ti

1.

The Indian IT Market: New Segments Being Discovered?


According to the research rrm IDC India, information technology vendors of the enterprise (ERP and related) products have refocussed their sights on small and medium businesses (S Bs). a segment they had earlier neglected as being too small when individual business sizes were considered. While the individual sizes are still small in these firms (defined as a company with 10 99 employees). the 5MBs when taken together constitute a large markel segment. There are approximately two lakh such companies in India, with an estimated spending of about Rs 9,800 crores. constituting around 37 per cent of the total IT spending in India. Thus, a formerly unattractive segment may become attractive, once the larger segment gets saturated or overpopulated with competitors. or both.
( urc ': BII. in ,\ Lme, Jul. 2 .

Pers,:pe£tive' 1.5 S'egmentinlg CIU:stomers in the 'Tra,vellindus'iry


The ,aiiFIine' industry' natur,aillly caters 10 M',o,segll11en'ts· olf travell~ers. The fi'rst iis, 'Ihe, Ibusiness 'tra.veiliers who g:olsomewhere'for ,offi:c]a,1 wo~k., andl the second,. tlhose~ who, "travei,on Ipersonall v·siits" teura, a'le" The' clharac'edstilcs of~hesel two .seglmenlts, diller lin severalw,ays. FOil"'onEl!.the bU5,iness, t~avell!ler litS insensitive tOI prices, rela:tive' to,th,e' personal tra,v,eller. 1i1his, is, beeeuse his 'oompsliIl)' pay,s for the !icket But what il:8 l11a~;r want is fte·xlilJlli'l:Yto change flighw eaneel bookingls, deliv1ery of'li:ck.srts at his hotel at: short notice" etc ..The' pe;rsoll'i;a~ ·.avBHef'~, ml ~l1eQlther hSlliild. may be :price se:lI'Ilsi,tiY:eI, an,d D " Imay be able to pil,an a'he,ad iin many cases." If It I:s c051:~effectiivs. The, slirHne' oomlpanies ,aliso USB' 'this knowledge '10 offie:r higher~oos1ing ibusln,ess class or filr:sl ellass, seats on many fUghm. IRecently, the'ra,iilways andl bus 'transport companies have also s,tened segmentln:Q travlellers 8ndtailoringllheir offenngs 1.01eatEn'to a Illarger num'bsl" ofsegmE!i'Jillts,. Ea,t1!ie;r', ,8111 you hadl wef1e three types o,f tralns- ~fiI,epa'SSGliIger,.the malill 81ldUle eXlpress. But toda,y.th,ere is ,a large vari:iety of'u:aiiliilsl!hat l~as, bes'liIsdd:ed to, ttJese~h'e Rajdhani. t.he ,s,ha,tabd Ii•.'Ule I nlercily" ,sind ,reoenUy', thel JI.an Shatabd.ii. AU these eater ,to dllrffellienl segment's·,of w,s've1Iilers.,So do 'the classes, of ,accommodation pliOV1id:sd, Uk.el the I!=lrst Cl~as&
j

,AC;the 2 Tier AC. 3, Tielr .AC, and so on,


IEven buses 'for nv,el wi~hin a lcity have' evolve,(J into lWimiteci StolP., Air~nditioned'l Men liner De:lu:xe,.e!te. tnter ..city buses II'IOWf\ou~ine~yr'DYide, ,options Uke Regulslf" p lJeIiJX19"Sle'eper and .A.e. Bothl priivale and state-ownedl b,llJ,s ope'mthlQI companies Ihavel IflUlW begun to ,offer morle· variety 'or 'differe'nJt~rave!lI!er siegniilenls,. 1., Can 'yolt.rl defin,efhesel clllIsromerseglments, ,acoording m .solme !of'theiir char,ilcteris:tios, o:r att~tudes?

:SEGMIENT SIEILE'CTI'ON OR. TARGETTIING, A. FEW SEGMENITS,


A serviee marketer m3i:Y' e tempted [O,targ~1 aU available segmenrs, aJ] at once, Bur IIlsual:ly~this, is niOE:a b 5ood. way to' begin,. FOir'aanlplie, 'Qons,iderm entrepreneur from,Ud:ipl, K_am,ataka" wilio decidesto SC1( Upl a Irestauranr serving; smull Ind:iJ3in. ood. He has 31. host of' "haloes ~ffo~d IYpes d-i:u he' can serve, but he f mayscitde' on sO'lJ.th IIld:iam .Cood; bt!iC<l)l!!S~ m:i!!t is: (liproduc[ he knows. Sim[~a:dy,.th!i!' l,eDI;m,phia:~ segment tba'[ he :may S[3n: with Is one ~,oadolih :Banpore" He may chooseBI::lifll,gatO,1)e 'beou:se tha:[ ~s w:h:,e,rc' .say he ,thinks dl::ll'i ::11, ma.dcet ,exJsts.. Afber doing .QuJVey formany 'or :i.nformally, he may decide on rhe a(leQ close to tb,e railway station IS being suitablJe for his kind ofbusines:s:. Tberefoee, Ihe ~t-lrts·w,jllh.:& subset o:f Utile possible market end produce ,seg;ments [Lat.hl! .,;;ouJd. have served .. Ju ,t to take me OlpPOS:.t~ 'view and S~ wwu: milly'be requirod if be were' '10 serve ,aUpo,dble' seggleDts in a]( pc iDle·Fog"phica.~ areas (:e'fi:ol if we' limit: ourselees [0 jUSit the' dEY 0,( BmgalD.re), he' may' have [iO Ilipen. 30 reslltunlln.es, of different kJnds in diff'ellentareM o,flchc' dty. auering 'to different types of,c:w;[om~ CfS andtasres, TIh.~~wo~d l)[;1l1ib'olbly [est his resourees, .h,ampeli'.in,g,man)'" _1:5: of IUs: oomtrol. 'O·Y"C[ Ihe
IL

IDwurUfSSi c5'IJC,1ias: .lurlR.g" It.Unmg,


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,"""....

massree

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,of loan. an.d in,crease his Ch3iDCes ,of &illl1l'C.

Copyrig

eel rna eria

'The p~'mt oftms example is ,tbac it Is usualyprud~n[for a ~erdoep'roviider flO CbooK ,o.neor a re:\Y' of aWlpossi'~c Wlei[ s~en'[S. He may, afterplning confiden;oe in serving thaI ,selmenl:" ,expla.ruj~n,~o, servi.ng the same 'type ,ofcl1Sto,mcrs, dse:wberCi' or cv"cn tty eD~ng djJfkren~r qmC'D'ts by say. adding north lndJan food i,~ms to bisrcsta.uramt',s ,~.i:stingseurh ]:Ildianmc:nu (for I!h.~ex;am,pl,c WGwc:re diseu:s-s ..
:illg).

To provide a.pm,;[IjI~1,from the oonsumetgpOOs6eld as ami]Jwrttaitlom, Proaet md. Gamlbl.e" Idle .mtl..hina~ 'rio~01.lIp:F()d~"r of,oo,nslJma- pi'Jd:s~ decided to C!dt Iba.d<:. irs product and marhl segrn!enoi in Irulla in on, l(h,e; eailypart: o,f ~:bis dea.de., ,Jtier an attempt ~o beat H:industan Leva in p'ooduct :tamg~il_nd distribution failed. As ;Ii ge,neral p'riln!cip~e. if a :marikct'ff of .$c',[V,icesries~o' be ,cv,erp:h:in:gm Cl'C:.ryome" he runs dlc: risk t ,of bdDg a n~fbod:YI or rn:m~r'~.nobody· 5; preferred provilcier. This Is ,nor' 1::0s3yiliacme am,birio.n sholuld. be
1

ab.scHe burt 0'011 rbar[ it is: lC55:Irisky to'proGced ;I, sitep :at a time:, This is beca:use a fir.m'slicsou.rccs: ue " mually :Iim,l'red~ wha'Wler ~: :ics :size...An/other eX3.mple (tom da.e lSofe:wa,e industry :ma, be use.fllid., Tara Consui'tall:CY Sen-ices (TCS) Indi,a's [OP IT ,exporter'" took ,several decades: to grow steadiy to tbe position it e.n.j,oy.s today',. inUle difficult market fOf' spcciaJ:j;s~d 9crvices in am inl[e:rmation:illycom,pl'!ltitii.y,e ,siruacio,n.EII: ~p~J.!:d.ed. ~t5 ,~eadls],owlymd grew' $[t~dHy in line wim ~[S corpoml)c objeccl,ves; and ,Ph_ilo$o~ , ph)', choosing (:(), emain, :iJlpr:i:va~l)' bel/d. Ciompamy ,eveD, though many ,c:empmli!e!i wr h u.sed.the stoek r m<!JIk(';[route fora ql!!]~er gro,wthraw. TCS felt oomfo.m!ble gwwing the way it did, unlike ma_n,y odl!er:s; 'wb:orose Uif:i.dly and Fd] i:~tlO obl.i,vionr ~ ~ywdJ,'j pardy b~lJ$e [ihey "ried I!QQ mmy dt:i.o:p at (Jrllce.
I'

Teria Infoteelh ,Refocussas on the Corporate Segment


.' During '!:he boom 'ttme&1 many :firms pro,:y'~dmg oo:mpute.r oo.tu::atton.to s:lu.d!en~s, u.sed to sUN:i"e

,other :Hrms, e:lli;:iitingp,olllthe brus:iness. ooit:ddve.rnture

Its toU ont,l1e educational It services sednf, with. Aptech selUng of.f .its bll.si:rn.essto SSI, ,and many
Ta:lta,Wo~ec:h also loWild its, businesa sq1.l:eeze~ and had to ·Ihlnl.of mew' segm.en.tstha:t

and thri.'!fe m,thl.!!' lnd.ii.tn :DlUlit@'t. But !h@ boom. ,!.tid.no·l·we

fOMVlel.

De' 'bust wMdlfolllJ!ow;ed took

upon. T.he oom,pamy :reft:l<:usseda.ti'enUo,n. ,on, the corporate segm_em.t which, also requ.i.res ,oomputm:" bmnin,g ~CilrUs employees, and O'fer .". period" 'tlil~ p~TCe:n'a:fJ,e' f bl.l8m~ o w,Wch came' ,&om the corporale ~e:nt dmnged.fmm. 20 pef",oent of its tota~to' about ,65 per cen.t of the to'tal. .A! the' same !time. ~.tsainUale channels riucu"gbtwbom. a fOlt oiEi:Is,CD.\l!lSUmer (stud.ent) business was done, came dowiIJIifrom, about: 2.00 '~Oabo'lll.t 125 lin, :number~ signalUnga. decline in, Um:t ~g;-

mm't_
tiOD

'Wh.<!i.! this, case shows is :tllat :m. bad!tlmes~ it~es sense to :take a :re-lookat ,our segm.enta~ and t.trgetmark,etirngska~egy. ()fooW'Se. OiWI.may .involve reposi:liomn:g ),oW'Selif .a.t times; m W\@,with the mquirremut50if the !1ew~gme.n.ts 'oom, mr,getted~.Abo. it IcoUIdinwl'le changes tn, the '! p's Clfma:rkelin.S.
1,. Can fOil

'trunk 01 what chtmg:es Tata Infotech would need to :make in its pDS:itiO~g, and i:is , P's (the ma..-rk:etins:plan) 'to, slI!ocess.ftlllly serve 'the corpom:te Il1iMket?

Copyrighted material

",=,,_---

Perspeclive 1.61 Targe,ttl1ng NI'c!he Markets:: RelQ Shows IheWay


:ReIQ Softw,alre has set upa softwal"9' y·emcatto:rll and] vallidath:lln 'celiil,trB for ll,n~.ellh'll Bangall:ore. It has saltemt.el tes~i'rlgcentre's j'liiItihe urs, Europe a.nd i:l1Ithe Ashill Paclif1lo regio'I1 .. ~t:s a niche Ibusiiiness,., and their,s iiis a pe'reeptiolll~'a:t: it is sllo,w e'l1d )obi thoug'lllit i is, a ,ol'i'tieal oomponeil"lt ","the :software deveiopme'llt life CYCi'B"Software' v'eriifl,catlol!ill ,and va.lidatiol!illiis a SSNteal proViiidisd 1.0:software de'vel'opment OOmllPianlie,s.,Iliike a, qjlJallliity oell't:~ .. fliestlon IPpoQlramme for manlul'actuli~l1g oomp,anies .. R.elD IInJ.as! chasen til1is a:s Clnlclliile , lbuis~lfiIesssegm.entJor ilself,

n Once [he '[arllll,el:' Sl~~enf or marbt: is: dell"rth.e :serv.ilfie marteU':r' hM [0 ,r lIlIos,i.I:i(Hl.. himse~f a:npmIF" :r-ial[c['1' ,!til If." L_ fO'f th~u segmlC[u:. Posicior.niD~as is now ''WICU un.derstood in. m.arJ!ret'i h.G:' is: an. In'tfg,Gli1Pl3l.lt :5ual:!egy rOlf :31
"""-:C""'!!'!!!

o,r
L!=

.mew .sC'I:Y,icc: .p.r!!'n'ider. Bv,em ~n (he ease of a msrure b!!U5;in,es:s~ aserviee m3:irkelier needs Ito :F!~ffim;l,i~ .pol5ido~dIIlS in the minds of taf'pt at5Ji!omcn. At l~m.elii!,3. subtle .iI.h.ift in. pOiSi.ll:ioning may al.so be n~cessaJry [0 keep up, widl the cbanging ,oo,nSIJ.mel p.Rlerences ,Q.rto cope with dIe ehalle.ngcs ft()iJ"itl (o,mpecilton. BdeOy, tlhe ,posido.ning is a1 me!l'!!mli:ma,ge orpictup.: that:1 ,servicep'fovider w'ould like to. bavlcabol::n [Imelf in. the consum:er·s, miind .• his a ,deliberate aUem.pt a:t bu i,1 ing: an ide Ifuirlf 0'£:3. c:enain k~nd. lru dle d .scrv,ilct. FO.r cxa.mplc, M,cDenaJd's in. mlld~a hasa sllgbdy upmukle£: ~m~ge than il\ the US~ where ~'(:s i vi.ewl=d as cheap Amleri(af1 fan food. Since .3,.. hamburgef is :(!I.1l Vleryda:y item ·~fAmerican food, II:made e sense :for MciOooalld'Sfl devc~o,rhaJt. :po!SJd.o:nin,g.[n In.dia,. tWtalll :sloil: fs drn.dy oocu,p.iod by" v;iilritl!'f)" f o Im1dianalfcrn:atives.F'of ,example. 'me idli.-dos'8. comer F£lod. joints in thc5!o'l1m:,tlJ!e parad:ta servin;g ,sr;alJ]s in d:U~Rott:h. ethe fa WId ~amos:a. C-Qli'l1tfS ·of K.o:I.bllrill. T,herefo[~j dle mindspaee lb3l['.McDoIli3ild'shas e

tried moccupy ,is·of twO types:, Onc, the afflu.ent, wcst:emi,s~d[lec:n..et. S~cornd, th.e modc',l'n"llpltatl,c f.tmily~ possibly dri.ven by ,cmfdJ:tto, who ellje" dlC f~l~nl,of eating ara M,eOs'l'iI,ald's. P,osidoming bas a len 'co d.o, with rilletargee:seg~cn't to which we choose fiO ma.rke't.; and it has e[enlcrirs Uke p.r~cejlpa(!bgi.n.Gj com:m'unicat[C!Ul Ind. amlbjlel1l.~ewhitOh rc]nforce: d~}e po!Sitioning at1tempted by r~Ilc:: oo:mpany •.
'1

Per:spective 1.7 M,cDona.ldts~ Indian P,os,lll,oningl S,llrateg[y


The new posltliOOlll'1.gof McC:cma,l:d'si is ii)'imedalt the I'ndfanfatl1er.the decision maker ,of an l'm:Iii'anfamily.1ti1etalkes, ·the {amU" 'OIUlI to have a g;ood time a:t.'McDonald"s, in iiils neW' ad ca.mpaiign. Othe'r 'eillements o·fthis posiilionilillgl slmteglY ,are funlaJlilo ,exoi,tementi for 'UI,e

m-m-il "1--- - ..

IMcDol'1lald':s, ha·s !b8e'l'1Iinl:mdlla 'foll"five yeallrS now, and plaflN1;Jn !lI~owing a. lot. mOlie o thS11IiI iii: has, It ha!s brou:glht down p:l1ics's." added l1oW'irtems lathe me mUI" l!i,k'ElJ hs'sdonie jil

Copyrigh ed material

wntema~iollaUy-Mc!F;al.afelin EmtJt. Samurai P,ork IBurge'r iin lha]~andl" andtme La~in and Hlsp.anio v:a.liiiailions ,linIme IUS. 'Tlleir most: poPlI'lar products, in India arre ·the vegllbfLUlgerr and Chicken MoB~illll .. 1l1ey serva 45 million ouskJmE,u's leveil)'my (Ihroug:11I28'i'OOO restaurants spre'ad ,aoross; 12QI oOlUlll1trr1lesw'Q~ld:wide., Invsst!menls enViiisag.ed in I:ndiia.by McDonald's 81'leto the tunel lof As ,BOO,more 1(4001 crio:ref,o:r restaurants, ,20QI,!OmnJ 'for suppl:, clliilaiJi'll ii,lilIoludinglf,oodi p1rooetssirn,g", ,ooilid chain. andi aoo ,crore ":o:r':s_1f training,! ,Qll1dadvel1isililg). erealkJ~iV,eflt usulaly iIlappmnsw,tth1 00 'r,emurants, bul iii'll II:ndia 'Ihey hO,pe, fo,r Ibreakcrn/,sriI witll,80 ms;laur8lnts. in 2003 .. (Soune: The .BroodEqr~ity.TIle
EconomicTin~'f!s •. 1.5AlIgtliSlt,

20(1)

IQfda, for ,example, ~d to, pOlSiclon. Ihe:msel!le5 ·as QJustJere" dull but sa£e'plill,oo,you. could f!nI:5it uu,til .reae.Iil.liI.y,. Some public :seCIliOf banb i,ll :India have ~rll[ no!: ch~nl,ed·. Ho,wc:ver~ollns!!lmer !1~tes have dr:ll,p.l,e:d. eompecif;ors in field :baY'e b'Ii'OU,gDti,[Jj :mode:m. v~ews from tbe a.d.\ran,oecl cOlJordes. P.f~end"j ~!le~ bmikiscryiog, (0 'Qiff~' am a_mbb:nee whidt is uicm.cily wi·th smUlfig f!OtU1I 'ceUe.rr;: .nd re«,uoft]SU, a illfll,d euseomer Se"~(lefCpftlS>em[:u:ii!l/ies. nor lin ImCiElMn the ~ll;iemtJjes .a.md&ee phQioop--aphs I'iO open bamk ac:coWD'[S w~dl" TIUJ1s.,positIoning. CjUl, .also be a.funcdon of :80. m,e •.and a place or ·91fUncdo:n of wha.t: dle d comsu,mers e1peor. There alie sev,eraJ sun'!.:ys whridl show that .Iiodia's public &WOOf brudcsue D!O,wper:ceiv,ed by ,oonS1ilmler.$ [iQ be ~;SIOiW"" O!;bure3ucrat!;c"'" j~irecm,.mol:ogicallv backward""), but still, "sa~e", hJerea.s: w lhe .mew' pil'.i:wtesccllorb:amk.5i '(LikeICICI8ml: .•UTI Bank.. HDFe Bank) a:rcpefCcived as "aggress~'Ie, tccltn.Cl,lDgica1~y ad~'3DIQG.d,... adcl.tSlOm.Gr-~~i,endlyf!Tbw· .• tI:~,1!:,o!ld,tl' bamb' In:':lhepu.blic ,seCl[o,r wUl nave to' .. ~.mm image: manale:ment iin a:rdc,r It(l, po:5it;~on I:hemsel.v,C"s appl''Opriar:ely I[owilrds the Yol!mger gCIl!er\!!f]olll iD. ,a:dditiomro, giwmg 'tbe~.~eillncrioJt3iIIJ Ibemeflu th.llIJi:they a~Jre.. .A. .1\~n.C: I:Iie'iNS ~il~m' srnl:e5 [hat: Balf'lstaJ,tke oof&e shop dh.ufll tdl3tt iSI11iJIW,oo~tooUed by (!he Taras, wa:brsab image (orpo51[iomiin:g)ctm:ngcto! aura": 3. widJr:;r faJllge of 'UQ:OnlUS. by. amoEIII'Q[her rh:in.gs~ :m,aking coiiec .mO.re If[o[dab~c at .i8oudcti" MtfOllIild. due: me: 'Upiica1e im~ge ~t bad. built 'Up' .~imitoo.the· soape :fo'f cxpansio:n :amdf'o,und (hat i.e: ass:eIS (chaIrs, rea] fSr3.tle)'\'Yereundiefutilised :fC'f alargc' pan: of the day.

me

There

3i1i~

3.wliery' of ways in, w.l:d,hposidonlmg

call be

.Mriv,ed.3:r:. Some imajoli ways !of dolo,g thisM'c


in. toWlJl:: an. a:mll1:Siemenc:p,;J.rk. One
J

d:iICIlSSed,

'below.
fea.tm'CS:FOf example',
9J

1. Posi.doningby
rmrn.1I1tilll,t.

the largest fo,lJef eoastee

.o.ew ride ,idded ,every mon[h~ for

,idmUar ,dlemep'ark

U'Ii'e .music alo.ng wIdla. dinner (or

me

2. Posiuoning b,y COlllipmSOi.n; For ,aaJlJ1ipl;e,the: h,ighes.l Illcoupancy rates in l1IJWll for .31hotel, the h.ighest perce:nm.ge ofs:atbfied cuscom,en fur an :aidme, D'[ the .hishen perQentage ,of$yc.ces:sfl.!il,can~ ,Waate&J fora. coaching dass ,or educadomal ..[mstitu.f~on. B1Dious seheels fmquently I~ :rilokingsin i:ndependoolt smneys tOI ,claim. mey are in. tine tlOP I 'OtH' :~5 in dIe (iOWlIl)'. O'I1~ bU'iness s!C:hoo~~ Indianf!\1lst:itUlie ,of p l:a'l1niug:3IInd M:aJlla:g\cm:ent:(UPM1"ewio :pDsido:f!!S ~mdf against the: I ndian ]:nstiw(Jc;s,of.Mm~g,cmell,f (IIMs:), w.ith, the !.Ine "Dare co Think Beyond :thc IIM5:".,
1

.. TlJI.mJJomir

nmtli, June

2003.

Copyrighted material

3., 'P:osidtl!llm,g b,y bemetl,[oooomumec

As in "You have a dream o,fbeoomiog all expen pro,gn.rmmef" W'Olfikiflg;:for iii: WI\Il~tima:don31!,going abroad, eCC.", nla'we h,ril.1,J'}",QIJ 1[0 Llfi.n h". (mild, be dlte slopn.s a of :9., ClompllneI trainil:l.g, ius:drtu:e such as NUT 0:[ SSt Or~a eaeeeer coullcipo-idolll hi mse~f:llS "t-aki 11:8 [he' basl.es ()!il:£ of,oooflcri:llg a,lnd deilnIn,1 for it party", (,II' a resertceuld posirion ~rsdfasa ",g:e[a~, from. tme y:ear found. hecnc paGe of liriC:", Aidines such as I.l1diall1. Ai.riines ,oller me faJFgeSl( ~onl1ecdOllS

['Cilmo:st In.d:ian,

4.P:05idolOi.ngas:
bQ~~t

it (0' posidon dlc:.m~e:lve . an. C!tlpe,m FOIli'e:mmp~Je.we uOldenmml,ai:r frnV',c:l.fb.r an ai[,I~llej


t~,WOs mel

cides, and

I[ry

eo Usc

'Of)

m;hc expern:' au

e!ll~f5, for ;Ii, t10~[

,opern~Of.

50 ':o~itionln,g tbJrough glllllll:'mll1.'ees: :Fu.n,sa:ti:sfac£i.on, or your moneybadk. or returns wid!:no questions

aSked" in ease of .retail smn~$.


,6•. P'os~tioning asa leade.f~ 'Num'be:1' 1 iiI] the fiu.llinl.reremilil1lt;
ness, :10. chic bi3in:kb\g; iblid'us:try', .
'QOIlV'e)"

business,

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[ead:enbip with. respon!i;i,\!e~

7.. P'os:idon~ng dllOiUp. s:martmg :Ijnes~",,"feb .ma:y impl.i,d,dy


line '!lJlSed .MetLife !by
lnsumlla.~USA,,\:V.h.i.dl says"Ge:t Met.

some benefit" :I~kelihe .fmnOIIU It Pays. ,. U'b buli:a" tiler are cU.!:fierul.y

u5img;dte rag nne "~Haw YOIl. mer IIIle ~oda)'?"),. ThIs may indicult Imal i( seedes claims,ritb less of :fUssdla.ll, oo:m:pelito,[s. It may also i.m,ply other vitme" mo,ush not ,exp'lk'irly spfCifi:~d., . 8,_ PoS:i[,[OIl~Jlg Il:brou.gh '!!1ll.0ttQW S1JlCh.as: fear. lC!!'!I'I!!. ,kinship" concern, for the i.":lllvirommeml[. eE:C.,A hend !ch.aio.in, I::ndia ·caJ[sits P:,l)open:ies Beetels, ee iindilca:l:e me etnvironmc.nlaJ ,c~)n:sdo1!1S,n!ess art Wd011S l,e:vds, S>aJlamAii:rliue\l.alateen.tnu.!!l!:iil.\l!).dleaiirlineb~i!1ess •. PQ!lh:i:olled.i.uelf.~··"£m.ot.i.ol.:Hllly
Y;ou.rsi"'
.0

'IN',oWld:be ultiim3!re~f Ites:l1td wb,el'll the sereice braad is bl!ll.iJl:up dl!['OdOh a ,clllImb,inadon of milu:keting and li>randingini,[iatlv,e.s. Tbe: rest of i£:his book d.ea1ls wid).. ~be pr'Qces:s of d.o~nK .,Jlth:,u it£:3ike.s ee s:llc:cessfully mMkier [[l,e :se.rvice:!. The prooess: of bu ~I.d:inga.new Sill'rvioe: ran d canm_k:e: a fe'lll!' years, :1''011 flti cl1l!arrly a.cross OJ, l~al'ge@'eogit3,:h iea ~ area,. b
s:m:rar[Cgy
ill a, Um.i[ed :aJ'~. som.!: b.rruld.s can be ·builli:su~cessfuUr i~, a mueh s:h0 nelt' pe,riod" Sl.U:;h.as a mew restaurant, a ooUe,ge. orr arecSorm'.TypicaUy. the Ind.ian brands in ·vuious service car:egori.es arc nor 'Ie!:,)" larg~ er spn~ad 'our wi.de]y across grog,~phi,caJ areas, The.!:.;'are :some excepdOM ~:o,[his{For euw[ple ,Ap.rYialpackel'satlld movers, 'Gad. mrgo!, Taj hOlids, NUT cump'lilciCl!',ooaching Cll:oue.s.ruJ1d. ManJ.ti SF sCn'.ke S):vaila'b!e: duou.,gb. ,au.t'ho.rI~d dealers). T.h~: o·uuT.ket p:I"OY'i;des tine best exam.pl:esofbi:gsl!fVice com.p!ilftii!.S. wldt 'QWrofi!IFl briUlld names: spr~ad.acr-os5 a.I.a.rgeg,eoglm,phicaJ. aeea, There is Wall M!lf£:.me Lo03ny"

P'osicion.i,m,g is d:u! anicwa:£ilon ,of a brand"bui:ldinC

oor a senri:ce.IDI

us

l3ifles:l r:e'mUer :in dIe world" and. .many others like Sear'S•.T uge':, ere.. 10 ehe same Une 'of [bus;n~s. minfood, dley bave dlle .Mc,DonaJd', and Wie.ndy',s, cllainS, In seafood. dll::re is Long J,ohn Siilver!l'~,in oil d1:amgcs, ifa,r ars dtere isa !ch,ain mU~d J~HY Lu.be, and iin boob, a ehai I cailedWddenb!lloks. Si.mHady, in :hortils. d'u:re are cna,iru, sUich as the Mar~lou 3!.nd Rir",'Cadfml.
In lfldia •. ryp.ica.l:ly th.e iScwi.(lcbrnnd:s are .IICilClilo,r art the mest ~Ston:i!J braads, ,eatler:ing [0 a. regi011:'l I(-c·the---"~I\..c-: -,-,,~, p-, c,' __ Il!lllg _ ,CU)!ffi :',,-,[ .. d In __ S(ll~ ,rD!. OO[1U]J!l'l!ml,eastern!, ,-It-Co)•• , TlLc'-- may ue ,oon tr'b"'-'· -'fa--; .. l!lVU'IIIi,L!m til'· ,!JIlIY1! ,as ,aJ .stml_IlD,g !Le mt;;re ,,--,,'bL .. ._~.
C

·'1

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--

..

,.

dJv,er.ii:ryi ntasee aeeoss

ci[e.wh~ch has made' a u.l:liiform a:ppl:'!1)!3Lchfather d:i ffiaih:. H()lw~ . ever" ,efforts are: .!lOW be.in,g made i.,. areas likie g~Emernil!S and I:ofs;ro ref up fan~D~nld[a'n l'etai150or:eswiitb a eommon bral:l:d.ldenl!lty~ such as 'a:nraJ,oolU: a.nd Shopper··- Srop" Blu Ith~l,ehave been SUiCOesS:,nodes 1m the ,n1,edia,afTY ehanaels sUidden.~ycaptu.dng:ii large m<llrke'ta.cr,ossm:any I.n.dlall statesl :I~ke TV in Zee du: nonn" Sum.TV in 50'Ull1" and Star Plus across m,an,ysra.~cs wi.th .s;IJ~ful [pmgramming; dt..sip,ed
fCgi!OiilSj• :5tilt~j

me

Copyrighted material

l[oth!!i10I!1sewiv,es"wnes. The DelM f'1l'b~tc Schoel, a 5cliool in Delhi, now hHKamdlised :Iocauolls ,ouuide .DeJhi 000'. in P!13C~S I~k¢ Kolkam • .Ludmow 3J:lldPune,.1:0 capballse on. its tuot.m.d im<li.ge. 501 do man, looadh[ll;gdasses lihat pftp<ll.l''Csruden,t,s rOF'mal1!ag~memE ,e:l1tmm.oe~es[8j. ~i.kie'f:iml'" C9i.lioer Launcher, .amdIMS. In gen.eraI" however. dlie ]:nciiaIl5ervi.cc brands: h,a,vc:a ~on,Gwar 1:'0p,w'hen eompa:l\c:d 'wi(h branlcb: ,of the .Am:erican ICcOm,arni.es., Why isi[ nh3![ m. [ndianen.ttcpfen.eur does not' dream of ~e.l1in,ga 'McDolsa' Of a "Mc\I:ada'aooourhe world?' ·Wh.y mnnlo'rw~ captUt!li :the ql.1fn~lSStlindal Indian tmeme ,of.iltithi .Dnm .Bt'rttld 1['OStalt a chain ofglobal.hotth? PedJaps, the oppoAUnides 'Were dle[e~ M.d. stUlcontinue rio exJ.n. .Maybe m:beemv.i:ro.nm.elu:was mo't cond'ud.veto, thinlcl.ng big" with tOOl :many con.straints: imposed. by India's .poV',crty ,ofvisio:Jl and eoono:mi,c :poliq-. B'lJt: tibJel:le may be 3 day i,n the nex.1!(WO dec.ades. wh;el1l. we .mlllysurLkeil[ big in mally services, other !:!11m. IOUI'Stap.lie. the IT .sector, 11£: also nil:elytha.t trends Hk~resea:r,ch~ d~ign <m,d deo. do,Pnlelm,t lilbo:r;~to:rill\'s ordl!~ world m,i,grnd.ng is
1

[,mw3im~1 aa;demlle" ;,tnd :fie~ds ~.~ke:pb.arma~udal and bioll!:cbmdlosicdllesearcb, may pow ;'0 rndj]a~ suppoftliidby foreig,.n. >ClOm;pan,fullld:i.ngr Theb.mnd 1.ndia is ,globally known Feu bjg~~reCh sereices where Ib.rai'iin:power ~s :reqtlJ.;.rOO. It .Is r'Clad.v,~ly weak: i:ll lille dcve[o.pmeOI:: of ,ca.pbalill~eniive S'ervl'OOS, and .i,ll. 'mJCl: ,1]1Jtnag,ememr of prOCe5i'iil!S illlar:ge ,org,amsa:ulIlI'ns. Hlowever. services aft apos-sible oudcr for India:' 5 ,ca!pa~
00'

bUil:iie,s.j .h i:chha:vetypiclltyI3cB,cd. w

behind. herpolleruiali..

R:OLE: a:F MARKE,TIIN:a RESE'ARCH


.Research ..is o,fim.mense valle. crideal
100 d1.e enfil)c prooessof sening, up serviees.nufNrio;g, dle:m a:nd. :se~in:g me'm thr1(!lug~ w.ffiiCl!dl!: tim~ to! r~ach dllt:: p,.iIlM.d~ ,s1!!:lO!,;-;SS: th~ir nllJ'tlll,mI. dcd~ll~iliIong ,th.e Ufe 'of o:r Cf·de. Thoumha Jot of focw is 08 clBtomer sOllt:iwcdo,n. research. when {diking: abl):u[ servkes, his: :acmal[y eVicry !ltiimdor lesmfcbtha,lt is n~de.d. depem;d.~nson d:tc' sta.gc '!iilf ime sc:MlJ.e ~ife cycl!e.

AI: this stage, OOROCP'[[;cs[i.og; can ind.ica:OO:l:h.e 3lOCJeptab:i~iry of a. new semel! !oo.ncept. M'O[lC detaUed. rr:C5:[,Saa show if me'f,e is a large enough, marke[oo .susrain dIe service g,Y·l!r e am.'cxt,cnded :pc'ri.od of t~me,. Special~sed (,eellniques sud~as conjoiDtanai}'sis 'eo1uld be used to' .ide!ll'tilj dlJC ,atJtribu~cs ,,.!'.dlici1a::re ,~!.U1sidiCred hmportant bycWtom,ed, relaJl~'ieE:Oocllte,,:·atlwib1ute.s on offer>".

Pre,..lnt'fodluction Stage

Serviiee des:ig,n h; the .majo.r issue, aparc From v:i<ll,Uiq ,of tbe .p.ro,osed. serv~(ieJ ·thar .n.eedscesdng: at this stage. Regardless: of' th.et!ecbniques used re d~)IdlJe :study" ilt ~sa .necessity 1'0 do il.'. ro .lieduce '[bc,iis'k of gcnill,g .i.mro MUIlV.i;id:JI.lc business. or Itiha!t ·Qf entllri:l1g wid,. a. wrong d.esigllili .. :~tmay 'be:penincnt IO'11I0,tJe: bere lha:t for'm:any se,nrices:•..1!oQoon is a. c:ritiaJ d.ecis.ioll whjch. ,canma:k'e 'orbr,eak 'ch!c:busin.css. Spedal
iUrt:ell!1ltiQn shClluld.b given:
10

tlhis

mC[OIF.

For ,example;. £herwo m.os,[commo.n ..IOc;)J[]OfU fo:r .M,c[):O'.Il;illd'$ in

I.e US ,h·a;veboen 1.~n"'ro·\y1n residential oroommel'ciaJ areas Z,RJ):adsiderestau.f3nl.'S close to h,igh\'la'f !!xirsa.~DngtheAme:ri.ca.ll Im/I'e'rstafe Higlliwa~ys" wJ1JC:J1e fl'3:vef~
:lei!S'OlftCIl.SIIOP (orr ft-'5:[ and re:kesh:mc:n:[.Ano,l'he.f rerulOD man, euseomers .stop is eo w:ewe :fiDom~ i!1Imd.most resmu.mnt ech.ai'lil!$ rihc:'US :ha.vc :good. dcailll1!oU~ts fb.v· tbei.r Qse: . i.1:1l
l~

bat.h:~

Fo:r Im(llf;C ~nfb,rmatia~. en Ui5irng~ofiiol 0'1.,a~~.~ls In. dl:c :to.dia1l1lOO'il~:tX[',pl.c~tiefer' I[~ Chilip!:el" t.5 Q( the book Mat:.ktt'i1l" R.J;f(md:T~~ 1Im1,aa~.bf tllt~~__m.~· IJlldrol'. publtdtril by T:a:!a McG!'aw~~nu,

Copyrighted material

IP·osl..l.aun.c:h :S,tagel Tibere :aa~many ·thin,gs; a servii(l:epm,vidler' n.. ulywm:u: to

even :after' he has ~alli!El.chcd new service. ·P·3ltticularly. he may a inputs on. tlh.~·~.uribu.!I:eswMch the OU5IJOm!ItF is na.ppy· about, and rll!o,e w.hich. iU'e ,cfeatiug d:issatisbcli:on. There is still ,nope Ith:m€ the defi~,
d.en.ci~$ couM. be ironed out [fthey odst., This (lQ'1l1d be done ilil'fo,[,maJly or fo.rm:a])y ,d,epen!w,ililJ,g; [OiD. thie :n.1I:ltUfe of the servke,. ruld (he effl!Ci!\C)' ~f oon~c;tingacc:urart'; .Feedhaek. f'Ol !!Xamp~e,[his 3.l11rlhor w"Cn~ 1:0.1

wan,

know from.lalSt'omer.s

&mow, mu[dnationa:1 [cbain ~es'rmJwu in Dclbi an,d ohserv,ed i~abouJt: hall an hour spent tih!erc;.Idlal ItwO CUSf!Orn.~·!:'s tdpp~ci ~d their glwes (til off lh.e mY-l !!i.pintO,150ft: drinks ,in de main rusi.: IMt;4,by cm:rome:rs. The:re were actu;a.llyrwo, .r-eM.OIilS f(u C::bes;p:mage. IOnel,cbefloo!" desig~mrulked:a clbanlF ,of Lev,calom m.e eoor, It wa,s·eas,r 00 misswhen Ca!I',rymg, at tmy loaded.wiith. food .. S£(o~nd,th.ert w:M3i des~mll ifb.w ~n tIRe f.rayol:'th.e: glasses or bo!tn, When filled, 'm.e·~a:sses were: not .smblr: on. me [my, as: (heIr base was [<DO small, md.m.e nays wc.rc :dighdy convex. up~, .instead ,of being p~rfecdy flu'. These (WI() me[Oirs; 'were:,causing m.e glasses to fall.' off [wily"pmicula:dyal£'me pOlint w.h.eJlC th.ecllSwm.er 'tri.ppcd :i!lnd lU'icdm balan.ce himself. There was a feedback, fO'[«1 handed tOme amnoras he 'W3!S:blvi,n.g Ms: meal, andti!c rdewlll sho rtCO.m.i.n:1$were po:in'led ,OUt tocll.e us:ta,urancs:taf[ Hope:tUJly,. the :probfcm nu been. r««£jed! Thus. h :may be WCi.ruJ.tD have a. f'o·rmalr:eeclbac:k sy-;s~tm in cue euseomers have useful i.mpr-o¥iemch'tJ ~o Sll,tm~[. At: ,the V!eJy last'l' it an serve asa reassurance fOf services dla:t: a~capp'lL'ec~a:'ted"to be sure :that itheyare d.oin:g a good job. B.m.plof1ee'S Olaf aJlso ~el.motivafed by g.Qoa. :feecU';tc.ik. On thec(!J:n,truy.tn ai.rliine Icha.!: ,this audulI:t: t:mv·ellre:db)", appea:red.to b(!: tlki.n,1 'tne .feedbadc :aa mere [ormmlby .. The :air 'honesses: w·elle quite· wu.ll itn hand~ng our and QoUeC:fi.n.g r.~em badt, ;Hld forgot m
p
j l

mllectth:i'!: :fiUed. up ,(o.rmJ in .mao,," cases, It: alis!:)! i)jp,pc:·.n:sin M:BA. cl;,us;~ac dm,l!s, thaI: ,:uud,e,lu!l:eomp~:ruIn h abou.t ~nodl[nl happening" d~eftbcif feedback eo.!: a ceurse .bas beemlJ~yc.n. That reRects. I. cr:edibHity· pliob~emJand. his up ~o sfrv:ilc:e p.roviderof his retpJiesenJta:Ci'fe [ool1ecti.ng [he .fcedback. ee appear ~D' be ICfecliblle.• m~r be b-yme ima;nner ~n whic-ft it u. d.one, or by :saying; a few word, aboue rhe iDttnC ~n (oili!!CIt-

me

in.g.~cdbadk.
~.

~~.' 10 r:e.fspKmve·l .• · .0. 8


~

Cracllit C:ar:ds In Ind.ia: D[efiniing 'Comlpetltio1nl


Is 'the cliediioo'fid malt.et.t1,eadIngfor cirll.ltler?Arecl'edll oolrd 'com.panles strugglling to differentiate 'their mSpGcUve brands'? AllholJlS)lh li:nd1u:slry expefitS clai·mth[at tl1le Imarket: is
~'-.C-. -

gfOw.ingat a rate of 2&..301 per cellt every YSlar., witilnl a <Gus.lomer base of sevelilllml'llllorlll c.~.'::;- ,.c. UilIS,. 11,1I:I't: 'L a., ..• -, .. peQ,PB, n"'~·i.l.·~"""I·'hc-II"" 1.1113 1-usage of,~·,n c.... ""..... a·TA 1-un!.l"",o:!!. __!.lI_n. I "'f'th"" ~rd users tne not . !IllS '-'GH.I, .IilY --c,~....!-'tan.-illii~g,.... __ ~ . hig'h". 3.li1Idthal only ,20[ per OSIi1I1 ,of thel card base ~actually [gelil:e.rates. Jiievell'llue~@r the! [oo1l'd issuers., Says T,R. R,amachsllildra'll" Dired.o:F (,Mar1ketin.g----Cards), Cltibank.lnaia, "Cash' and c.hequ:f)·p,ayments continue te be the bIggElS:I. <oompehtitorsfor us, TIle perceliilrtage of ,card spendsto[ oVEIm11 peE {pfUl'Sona.1,oons~mption e,xpendlture) 'fo:r·the1ind'lU.sfry as a whoilie.; is, leu thaln [()I1I,8 :p8f ,cent. As ,c,f date, ttI.ere· ,a:l0aonly ,alFllJund 11.1'Iakt'll card·,aooepfing
_'!!O\! ~_ __ ___~

meH::ha.nts.

1. Willj:ch !other C81teg!ofies. lof :sewioo,s lin India arie ,at a simiilar :s_ge ofevo'lutiionjl M1IJere, lJIl.ecateg:ory oomlpet.esfor aiHentiion ~rom5!u;bslitutel IPIliOduC1S:?' 2'. W~atalrr9the masons,for~hel:ndialiil'OOnSl.Jmets. obsession wil~1 caSt11 er aVloldlanoa ,of aoredlt card ewen wil[en the', own one?
Copyrighted material

1'1111 IOOUIInIUy;" ttJe

UsWlYI Iht:;:,customers :pve may signals 'wbemthey are unhappy with, rJhc:,SieM~., If!!! ~M.CC::pwvidc!f is sllWt~ be may be: ali:tleno take die bint :and mapmvetbe I.e¥e~of sC)rvioeat ltmSt IcmoU!P to (emin. ehe 1:1\15:00.-19':. If uot, at .Ieast ,m\!rdu:: defea:b:!ln, it lSWlUltb,whiLem learn, from cu.S'lomers ,about whiltwCDC 'WNng,. M,m, :scr:vioe companies may want to avoid the 'unpleasant s~NaJtion. becaus~: it is ~.n,v;ar.iably crb:ic]smthaJtwU~ ~m~rgc from th,~: kinds of Sl'udics,H'Gwever'"it to~dpreven:rfunher damilge if used. " tOI,takic chiccor,[,ectiv,c ;acri!Jns. :M"ap"'g a senwce ente.rtprisciS fraU;ght. w.j,':b difficulties. and one of.majof' difticlJhies ~s 110u~nd,elStan,d. am :aoollr:alJemln:n!! h.O'W 'WcD you a~~ pcrror,minl: It any :givempoint of in. mm.c. That ~swhr 'C1JIistomet f«dback b av.ital. imputt that ,calland smto,U:1.d. so\l.idf:cd by a.i!ieNice fi.rm as be ff~~Ue.DrJlf lcam *o1llpa vniety offOrmal andinform:d ,tcdlniq.ues. Ome~edtll,i,quethat tne I'n!tUan as~t finMl.cild. seniccmd.muYf'l:$Om; 1(01is :;l'cuwmel meet' 'Oif a "gtievaru~e ooessal iJlnu~·. ThWsm3!:)" have its: ll:StSin umders1udliog. dle'views: orgri~ocs of Ql.S()Q1m.m. Oth.er rr«hn.iqu.cs; 'GiWi lndude 'ClISiJ:o,m:et fOcus: ••. JI!.. ~i.' .' t:.., i I.. 1~d~~ OUCf;rramw. L • ~..Il :IMUpsiwlUeR: m.elif sal~sl.j.cnQ:n w~~~ COlL. ~. ~ Y~t ,other tcc:.... i,quQ :uelvaJiil.b.lc:' eo usus a ,s~;Nioe: provider',s perform.anCle;, A 'mJy51~:fYs:hopPGF! eeuld bca:sbd tOI att li~,e atypia,ll ,cmu)mer. w.idu:nn du: ,knowl.edgeof ,,(un service perso.nmel •.'of.eoul.se~i ud ra.tJ!fh!!!",nice af'tc[tme. GXlpe.r:jiCnlo~. This ap,.I:'t:M1Ch. has !been. ad.op'c~d hy ma'n,,'s~lV.i,oe oompmEcs in _'L. '1 .~C' -if..·1 ,'fe5:J' II.W~aU,i.] 1:'0 mflc H1~ ---,.'
J
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"_"_"_

INCREASING IUSE O,F CRM AND DATA MI'NIIINIG


k ,oE 2i~h')311(he me: oreRM and d3.1ta minim,gis :imcreuins in. ]'mdlia.,md.li.ke du~ Ilt'encis ab.ro.ad!, !'len.kl~ · com:p:in~e5;aIll: dlcl:Raj:orusen ~.eft:tlOO. Fa:!:'enmple;, Foodwor'ld" a u::mHc[, mines tn.e' looDtsw:mer,data

qwmriitty OfPUKluLSCS and o[bc:ri,li1S~ghftj inm theif .amd :al50 IiO decide 0.11 []lle S'[ock. ()t ,cenaln. g,Qo([s•. Sy:nema.rioallyuaiy,s;cd. t~ese ty:pes of dar:;" usually picked ruJpfrorm tNI'l.A.ct:ions ,a:t dt.e Sf.or,e. could pmv,ldlc' Dum.CfOU:S ,!OO\R:SllIIme.r i!l!sighul. HowC'flcr., since 'fbc amOlll!ll:r of laalta, ~s so hiUi,gC, .it: is ROC.pOltdb~c:: always to, undertake the s~o·ra,s,e.mdmal!:fsls In,~holJ:5iC. ut service providers 5U!ch as rCtaU:clS" airl~ne511 B tei~!!ph.Il.I'U! Icom:panies: an.dbanbal'ei,n!CRalsi.n,glyrryOOI18t"o do 'mort' wjththe d.4tOl. tIIfuu mey "beady halie. and analyse i£ forUKfW,attelD!s. Somerim.es 'thl:)" IOUt5().Q.Ke me datI, stomF (waRhoWl,ingll and. :analysis i . , .....lOU(0, expm . pr,Dvlllers lOt uitsCSUVIW. A neDd ,iW;O .' . ",11 C':L • . "I"!'_'G"IC ~ ~mlRln911' b '.. • ~L e;xISU amon,Bsom~ c'OmpMiu~lI,~ie.'.Ii,·linu ,S,iclmcns, [0 IOQf:SOIlWC: tihc'ir O'WD in.~trn;d. mmaioD5 li(foa.cl:"'I!Ji6(ie :servia': provi.deu in, ,EndLa;,who, handle Ihe].rlrmnalons wo:ddwide. ·n.ee ,service p:M1vidm ;are ,somotimcstiu:ill:' own :gmup oom.panies, iJind ,so,m!cmmes tD]rd panysc:rvioe compilnli:e.3. The: [Will officc,h:.nct:ioos· :Iikc call OI;IU:rJe-s arc a~' bdng •.•. L~~I ~.J .I' d' . --.111'1 • . ,. II .• regwmy rOUtsOUfCw" ana m.a111l:C I.U;,C mCcQmln'B,~.u cennes .f'.. !CU5t'Omi!:'E queries lor OUtgOing'CIU sen!,es ~!CII't fo,rtc~em.ktdnl' ··It . fo' . f' I.V~ 'I r" Some mmpa:rues .~·a::ve d.van... ..system1!5 .'. f k"'ping ~mCk 0.. Ind' 'dIDa. ClllS[(!lmc. S Iid~' h' , l.s~ .. a ' oed . ,Uumslp 'h' tory om. me oomplu'C!:r.and mGY utiliise th~ imfolrm:aoonpmered for :(,e~ttmmi:aotion$ with.rbenmc CWllOmeQ!.These oo:m;paniia 'caD 'traek'cWliomef pl)\~refmees[Oo. depcmdmg om Idle :sopbiisomdon h~w~ of
aJlld,
j,

ab~'l:Jtm.dr buker of ,'lJ.rohases. k1:q:u.cn:cy


j

sbopp.ing :p1itterns 00 des~g.n spcci:aJpromodolms

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Ihc! elM: pacb.gc: and ,tbe .system d'u:y are 'l!Isiol' Trhils:.ilse.:x;pe.cted':io, pf1ov.i.df! :a lenr m.oU' ".s,i.l1:lIll~wmd.owjj ilJlmlmadoD 10 an,y ,em,~oyce ·of die :semcc provider wbol deakwith :mycunomer" and w~or the rle~ S,Orl!S:C m .inCif~tiG,mG ew:w.mu's s.a:ti.s:f;cdon m,c;l. In :pra.ai«~ meliC have been :s~r:d 5ho,.mcomli:ngs ln

Copyrighted material

t!bge: ClUA ,efForu~, ngin.S ,fro mdopP1 or IlulIlrnined. a]1 cenne pcno.n.ne:I" riO' .missing li:nJta,~cS between m the call oeilil'tR: nd i!£$ die;nc (the 5eni« CQ~pmyl. Sometimes), litis has ,even restd.llcd :in, WOnt; ~f\I\i:~e rOlf a th.e ,cusmmer" who is .not provided al!l!y ahel:'R!atwve ether rbam eallil1lio;a. call CC!:nl're~ wb~ch p'reYellts: himi her from di!I'4!(!~I.y'Cio:llmetimgany com:paniY ,enl.ployec!: 31[:aU .. /ul.odle:1' crirl::Jdsla [ev'dled. ag.ams:r ad'lllameed CRM [nkiatives is d}:u ':.be:r 'am' extremely expe:nsivemo .i.lumU ,and. m.a:intaim./u wruaWwi,mmyi.llid3ll'ivc:, i,h¢R; aft; P'MS and coms ,of h3Lv~m§ a CRM programme. and 11 ~s u.f to ,each 'QOmpaayco, dl:cide 011 $uh:ab~l~ty"aftC'fa.thorougb eese..lbenefit :al:il.:I~ysls. Howf¥~r~ in o'rdef '00, k:etp up' Wiidt me oo:mpcci.b.DiOi. it .maybe neceua'Y' '00 h~.ve a CRMi ,:r.0B~amme' ~Il some' :f!of.lll 10,1: dle oeher, We ",Jill. d!eaI.w~~1l CRM i:n greater' detail. i.m a Jailer chapoer.
i

me

Seme of i~he[radjdo:lil:aJ mode~s of COl!llum.er beha"'~IDtUrtha:[: an: applied. fiO cO.mum.ers ,ofggods ,could. also be :app!lied, to the !consumers ()if S!ervi,oes. But'· rypicaJly'" rhere are: eertai:m added. ,di:mens~ol15 whlich. marr .1l1.akcl'he serviee co.n_sumer 'wo.rrcby ef :adoser ~ook. Fint/'. serv:i.~:are I,cn.erally .m,I!UjCinran,gJ.ble dlmn. BPods. Thi.s makes, the 'IOOWllmer "e~w,Lry or !CilliJdom ~D g(!bil,S: fO:'['3, mewsenice provider .. Hemal)' seek r~m:urnnGe (110m. .m.my SOU!l'~ tb.ar he: Is makin;Gthe ·rlght' cho,ice. Till" m:a.y ~ncludc w;o[,dof lll(jiuthr--:~UA1DGesfwm kDown peopie" r:ei!lllves or fr!ie~:ds orthose he comid.:;rs:as !!!apertsiOfOr tb:,u: pald.cularpurcll~e. This is ,essenti.y ~ r.isk. rc(bJCrio," fJecbn ique, But there is .aJiSlD ian el.cmen.t ofrhe u.nkn.o:wn ~n man., o.ew .se-nicc experiences .. Und I you have' gone lthere, it ~s dl:ffi:clll.r u)s:ay whetheryml wUJIC'£ what :YOIIl watl1.C" at wherhel :yo'lJwillliike what you g,et.Por eumple~ ootU you :8,o'w Ii h.oUday resort 0'.11 bea.di.; you<tre Dotrdy a S1lR: if you wi.mi Rite the food., lihe looms,. the servlee, rhe itmbience.,M)d ,o'me~"I::~inl:S rhi3J'[: !'olJvalue. ) T.llle am;ie[)"~evel]; of ~1:il'Vii:ce !oon:sumeH is alse wiSh ~in'f: .~e;rviQf& ~i'bit hJ;gh "f;1_riabUity ,m mmy· cases, E:Y,eR ifrJll!! Sam,eS1e;M.oe pf!.Tv.i.d~f (my•.a [h.o~:e1)[, O~OS~EIi GUIt afil:iJcfI:d;'s ~aHDm~ndadonj 'CWitbe fi!:i!IM,eof,may (lom,e; aW3:ywillh ;1(lomp:l:e~el,y.dlffereotseni.oeexperi'f;I1!C¢ w:er arbree-day .stlly rhelie. This is
.... 01)!" illlc to :twO tli1&ngs:-(a) the CU:5fo.m.er"s: pCl'cepti.o!l'I.. of good. Sr:rvjiC!e may ,Clliflc.rfi,omthil[· of m.w.hcr d

be ,wff.ef,cnt: because: d~ff"Crefl!tpcople (scrY'iaempiloyees 'of the h:lnel in mis ca:sc) 'bdrtavc in ill ~eht mlmn.c.t. It :is lWeI:!!pos'SiMemiit t.nesam.c OO!!liD,md would. have: .0; dlffcJicmc: 'experience ,of aresta:~u:~nt dll!pemdIn,g on we:: wWll:U wb,o .bas: serYed him. ((IofL Tbr.rc is ;also In ,elcm~mt ,of ilI1x].eq in [be 'CIWl,mm.c:rifhe: Wilnl'S to be seen ~,. 'otb:C'fSII .~i"ing u:good '... ~ t:o Sh·o,w'ow.e.rs· _!L at b_Ie ... ~m:ponar.u:, v m:a.y.. . i'l ti··· . d or' Olwc:rl ... wno . b eu;a;vc vc!:[}" gemm.:..,_Il. .' . . .. _L 'iL iL . ... JI d seNlce 1m !~: ~'OU. reQi__j__n~n·$ ." ii:ng,ly cve:D if IlLe senice happern:s~o be IJPoci" jlJiS[ to '~sho,w 1C):fr". Thi.$ ,C:at,er&to dleiirownl RJeed,.Iio:r"',sraw.s"" or "KO),gn,ition:"~ sim.illar ito the SI[3J1iU! 0:1:',=go ,1lI10ed. be~'n:g fuLfiliod wbm d'llC)' buy ,Of UK an, QPe:nsivc

fr'li.en.d.,and (lb)' tbe,s,e:rvi:ccmight

pr,Qduot:.
Tmc[C'fo'fe, j[ is m:um dif6cult to predia bo-w'a renrioe ,COW'Iil!D1!e.r will :aclUdI, ,rea.c.t 'Ill!) various fuco (!If Y·Oli.lif SeM.~ .. Th.is lis: plrrQbl.b~'y tme ofr:be sendoe componemn 01 goods 'liDI)" bU.f IInC:lie. it :o:IIY form. 001.),'a. smaller P3lft· of tthCprod.lilct: 'llfFcrim,g:. For insE:im,OC, a COI!lsu!l1crof a wasbing :maditn.e IO.n.ce comp~alnJed i[hac the Ff:SOITli. WAO came ~Ol inn all. [he ma.c:hll:lic .in his ho'm.£: did not bring w,irh. b~m. an adj:u!$talde: inl'j![ pi,ealtbdlimcflt whi:m 'w·ouJd. h:a.vc .hdpcd :blm d.cmomtfit:c Ihe usc 'of i!lb.e:macJ.ime fot:hc ,cwmme:r'.1hu: piJifticul.ar Icustomer Wi1.cS 'Very :nnaycdl'ha[ he bad! [0, go ·out and blil)' mh3:£ :small. p,lcce of equipmen:[

Copyrighted material

himself. He mougb.t thlt' the oompillY' ,hould have dl0ll1glu a,oou! tbe ~trlt:ualiry and provEded for thi,s t:l,pacnadnn;eD.t 1:0,t;velfcu:Sto.m,er, Of ar least to dtose i~baE: eed.ed, hthrough: dill: ~;nstaUarion, Kp,['esenm~ n dve ofa d~er. Simibil.y:, tb.c:L"Cf-,sd~-,s(l:rvke for consumer goods often p:wvidcs CQJ'I],ples 'Of a ,mismatch, ,bel:W«n, oomumJcr cxpccradoru:and, what Ithe: !company :acc:u:dlyprovld.es.

T~e i,expe:riencc;"" "'cred4uai' and 'sellJ!Ch' attributeS ,AlM semeof me mcc:ol:'S d:uu: diu:i.n:guisb. senr~ce!!i rom f gocuil:s. Semces sre rusb on. lexPcriel!l(i~and, credence attrrbucCl'5whIl~ g,oods ,,,"" hliglb, €lin 'Scucb" ate

Attributes tha'e ean be naluatled beforepul!Cbascare ca]J]cdsearch at[fiIDue$. Goods aile U:s:1lJia]~y bigb 'CI!omeSl!!!.Fo,r ,mnal:la!" you QD ,5a;: rhegoods"t ouCh, and, .fed du~m" ,or evaluate: dJ..eif' p~byskalliJ:r olh:er' p~opcnies. :In scnicC;5:t'usd~, the ,cx_pcl.iencc is needed bcfol:c you can ev,:du;;a:tre them, Som,edmes. yom, cannot be sure ,of atttibu.tCSi c:venaiecr ex!pcricftoc. These a:tc:rwbtl~csrue: :lmow.n as aedenClea:~ ,tribu:res. p'or a_am:pl.e"af~cr gping rhmw,lh a. POs'!I~d'Uau:::p.rolrlmm,e in zoology'" ilhc:sl:odent ,m", IId1J 'ROlbe' sute :ifs;.lu~ has, mot a :~d ~!Jlad~D or Dot,' Or.,wr· 5l:_n~dng.your ear'. :you mal)!"sdWfe~J (juJd:iaJb~:rOf orla.erwi~)thatthG: Rl,~UI.i, lors'CM.C-tl oompan.y has rip,pcd. you off::
it'fiibllitd.
1

'me

'Goods,

SaNiess

'The

,of sew ices m:aYlemeraU, tend 100 ,co.m.ider (ew'Crbr.mm IDf service whUe ool1Kmph.dn,B :;1, :purmasc'. This is:'b~se 'unlike Nwlst!ofeS~ wb~r,e b is oomive,ntemt: 0 ~ookaJt muld,p:le 'brmdsorf goo. 1 :iIIE: ene p~lacc'~ ,arn ef[olrt ,i.s:nleedcd,m ,Ihop' uollmd. fol' :semus:, with different senicc' :1l'.[!il1vid.c<lS ,who pro,vide Ollly one tb:l:OUldl'l!acb. l:f yOrJll. ule ~ookinl for insu,r:a.nC!~ you wou:ld. ha,vCi to .IP [:0 fOUf O'r :fivie in.llllUl'u:e'olill.mpatdes act i.n.~era:.ci£:w,l:rhi:!bemto g~c a. quotation tOfw~atpre.mjum 'I'herwould. dTlia:rp.;:an.d! I the othcr anfwbulcs 0[" lrcaturc:s ,of their poUtiC'S. Many COllSllmcn rna.,. be limited by th.c:lac;k 'of,ti:mc' or [neniOl.• and .may ",nlc :for a. ~s:tw:6.ciQg" s(!l~u!rjlon,which, is anY50lua.on tna:t meets basi.clleCJ.uircmcft'l! wilfh.ol4t too ,rm~cb o.f:~ bm;fe. Tbe: i.paCtolflhi:s 'Oll a,Hrriec: .bnmd iii mat it is erldeal liD,be lna consumer's oomsidefwdon set. This ,CItiIi be do"ne d:mouJh oonvellien~ locatilon. ti.l'JiiIJn& ,Of dlfolugb effective: commurdcation strl~egies like :advem.dn,g 0,[' direct maia. Tlds: mI.)' o,plaim. w,b:y' :!iom.c :Sie:fY,i~ '!!ic)impUl~es ~ce,p'advcrf-i5i!Jlg O.f doi:llg p.romodo.M aU the' limC'~This 1.5: tty aad ",main iin.lt.h'¢COI'Uill.mcr":s evoked Sler;1.nd.coosideradon. :set a1~ to Itbcmnc .. MOrcG'Cf~, wotd of !maud,. :iswul.~ly igen,era:red. ibybrands, which a.dvieJ:ids.e ee .remaln in 't'h.e reYeryda.y oomvew:don of pot'emtial 'CDIlS'l.!Imcts. Tbe WOlrd ,of mouth also .iscrirical for manyS!e:rviccfirnu, as: collSume!s ieeL,.. ~ch:an,ge rhcb' scm,," ,cxpc·r,i,c(:lLCCS; with ,otben. SQ.meomES petsonal semng: CQU]d, be an ,d:Tcetive 'OOO.~ 'foreman. ~n I!!i oom$u.~er's loo,nsid.emtio!m set. Actll.udly.this: &emir 1(l:l1a,[' consum.eil'S eon .., S~dCf fC:wefd~emariva)wwd bcw;~d adl.vmtlgHUS[Y b" "macdve ~,Nlce provjd~n. 'Th.r:ir clhances of
CODlS~el'$:

Copyrighted material

IE:RVICE:S MAJRKEiFIIN:GENVIRONMIENT

IN INDllA

The en,"'Ulonmcot lm,~'mdwilihas Wld.c:'rg:alll.c Idwnat~c ,cham,gcs; in the last dCKadc.from a oo',nttotI.N C:llD'j,. ronm,e:nt. thecQuouyhas: m,ovcdioo,war,d,s ,3:IJWlllo,my in, sc:Yc~5erVicc sectors. For aam:ple~ :amill.nomomoIlS il:tplamry ~lI!thority called Teieoo!m R.egula~olJ AutJiodty of In.dla(fMl) h.asbeen fo,rmcd '£0

eversee the~elcoom

,i,ndl.lsny. Thiere wsi:na)cu~ng p:rwva:tieparridpatio:n in man:r governmcmt' mrnl!O~led, 5!Crvi,oc indWl:£ries" and ,the trend is: libWy' to co'.n:douc:. In, :genera], '[be sc.rvice j,nmw:uy ,lita 'O(l,t,PaCled, manu· faclEll1!!',ing: and a.gdc:uWwrero cO:lll'l:dbuteoVierha!lfmegmss domesric:produot ,ofrhe conAUY., Int!his:

scenario, the eustemees 'of nriol!lS se",i~:es aR also im. ill, state of i:l1,creasodilW3.!fItI:H~SSd e.x.pecmt1,on .. Peu' u ,example'" ~hefe bas been a priee war liesuJiJring in a ] 11)0,per f!t:arcdedil'l!!! in dle prioc: ,of fODI distance .pbCllme ,callIs;with1n[md.ia. Tille ~.~ phome ,oomp3nics.,windess in loalloop (WLl) providers~andl. the govem.~

mene conuolled,BSNLwiilh [a:n(Ui:n:~.and ,ce:U phone~ue a~~ in fi.ercc Qomp(uitioln. whim each. other" on ·'.Ib .. ,-..' ~ •• .:L J' I J w;o:r :u,. p,ar W~[]isom.e competitive: .111:l.Iustnes l.nwlc·o:eYcloF, ...... IJ h: is Icx!pected.ma.t t.h.c g.O'Y,emmCnf w.iU. dcrc,gull.:nc 1:n1ll.I)C service .~nd:u:Stric:!i;al[irs low:n,pacc and using. iu own methods. Many sCn'ioes collid be paniatly' ('!If 1:1'lal1y privacised, in (hie yeus: 00 !oome', ThC;I)CaJf!C exlP~6$ivepo.wth, Olpl,l'ortun.~des[n marnyservioe areu such as: Ic:n.tertm.mmeml: n::a\'cland tourism., ban,kJ.n,g,.
j•

Rt3Ujng. andro om,.The h'lidjan Wl!LI$UmCIF,thou:gh :Ilotu savvy or demanding: as hls US ,counterput'j, wiD
l

~eum,Rom. his ex:pO!itif·\!: m the ClltviirmnmeIlIt. .POIEICXrullpl!c •. i:n. il!ih.ctd:eGOOl. :seUDIf, ~OIWi'U.mc.rs Me fOl.:uinely mill'a:timgfi:-OID 'one ,cell phone :se:rvjce:c:ompanyro aOO'lher. 'bued on pddmg:and :se;,rvice ,quality. Wb:acthis .means [or :semce pro'lide.rs i.5: duJt ,consumers an, no io.ngc.r be tak~n for: ,Bra.n~cd"andlrthat speaam ,efforts· mal.)" be needed to :retaln tJ:h'::·m.Ia tI:u: ,r:ef;a~[SeOI:Olf,.for lexamplc, this ,could fmmlaf'C into more ,d,i.$C:OUI:lI.I[ stortS opening, ro carerto me p.r[ce~,onsdow ,CUS[OmClf,..n ul:i.dpa.don ofd],e !opening of i tbe~ :scotor 1[0 :1.OOpcr a::o't :fon::iln ownership. which w,onld b:l"img, j,n Formiidablc. ~1I~erfliadonai eom.pcd ..

don li.kc~W:aI .MiHit and Marks and Spenoc:r ...

IBrandln,g ,and rChain Stores,


As we have discWS'oo leuHer. semce loomp.mles: in !'ruUa ate nOI[kno'Wflfoill a ,pmm:lndJan. p~,nl~e rlmroli:lSb rcih:a:insliQ.l'es:,bar.r:ing a few ,companies. The uniform service brand a:nda. COMmon bm:ll.dprQ:mis!:[her~ '"re, fo" -·-,.d!.- .. ·",-··,-·,t';· ,- .,-;'.'..-,' -. '-id·· I~sC'tri__-., E],oweverthls ~_,rna y~!chan C Ii!: O"It:f ..:E!,C!. OJ9'11' coun]e of~ dealldes ! .rOcsno .. CDS "~.Il.m,an.y SC!"YJCCl~it ,. ~. _,_,_, "___' ..~g- _, __ '1" ..
'L _ ~ -.~".. __

with dle ~efV.ia: oomp:mies leam.i,ll,g.of Ithe sy.n~,l'lies 1.00 ,ad.ded P',OOt1[cpPlnuni[iespmvided bYlfO'wth i.m scal;!!: Qf (j!ipe:ElIriom::dJ.f!o1JSIil orga.lilicgroW1D, aoq'U.is:idoms or fran,ch,is;in.g modd!:~ wbkb u'c :&,equemd.y .m:oresu.imble fOr [heSCfV.ice ind.ustties. Pmelilomenali gfiOwth ,1):ppottw:l~lies ,exist for c.nt!r:cplletilie1!l;sr:ady to' 'take lin, the cltaUemgtspolSed brcbJe d.ecoding: ef'the diverse :and. muh:ifiu:~red :maikcts 'lllal:Idle Indian states prescot, So:m.e,oflhc ,entn:p,[,cmeurs ma.)" CVien venmre abroad, :amd Cl,eart: intcIl'I!atio'n;a], brands out of dU'!i[bllsinesses,.·aJd:n. I1Q wh.acInfoqs~ Wipm and.TCS: ha:vc, done.

Copyrighted material

Perspective 1~9

Ilnno:vat,ion iinS.,rvi:ca,s
Edll:cati:on in l'nd!j1ais al boomiill!:tQ aoti,vity.1 ndia'lI'llstlJldan,tsarel :soughtafter [by oollegels :around thel wol!llidloo',,, IlI1nO,V810n illil thii:s field is [bo~nd to ,be, mOl'elths1nin any other, :servioe IndlLlstli9S1. Aeoon~l,y. 'them_has, been a spate ,oUomijgn uliliversMtias ,and ooHeges that have smrted advertising ill1l'l.ovative proglr8mme.s. One! Ju1y' :2003adN'E!Jrtise ment fromme' UIiJJi,vers~ily f Sln,sftieldin [Eng'liii~nd* illdiveftisesttlat an [lllIiJdiaillil o stliJ~efilt can do :soma ,o,fns programmes lllll lhessalofllikii Greece. ,and admIs'slon InteN,iews:w,Qul'dlloe he'ld :in Indilan 'otlies. S,imilarl,y" an Ind!an IBusiness ,Sch,ooll'ocated ,at Vlsllaktlapama:m 'cls,ims n has a glo'ballMBA [prog,ramme 'W:llere times,pent by students in 'olass Ij:S less the,n ·that spent m,o:Vliliilg a:mulliII,dto faclo:lifes, and om:oos. not In Visll'l'akhapatnam'l Ibut a'il ever nIJa! oo'IJn~IY'.It is fainy eemmente :seeads 'foF'twinmingl pmgrm:mms,s Wll1Jeres~udenlts spe:l1Id ·1,sem_Elste:r or ll1o~e, abroad. alldUil,a rest: in I111 dial.,
1

ETHIIICS IINSIERVICIE.'S IMARKE1iI::N:GI


With ,ra.p~dgWI\Wftin dile .indwny. rhere :haViebeen vuious edlicaJmssues
dliCSC!Nia: ~lld!U:stliYl,i1md some ofrhesearc;:: .&SlclJ$sedi beloW'.
iHiI,dj cOIiloerms

bein.1 raised. :about

1. A_ggressiv,e Promotions

through, [elemulrecmg or :l'e~5o,.nal sellin.g

1. In.vMiom of .PdViliCf (r:eaificdby :Permissiom ,MMketwmg) 3. .Mi;sI:C'adin:g IC~9I.~ms backed by poor ~e:fVioe:pef~of.m.ance

Aggressi.ve pJiomOrJolJls in :mBS media may mU: 'be wo:lating amy ,ethiea] nOIDl!i,; bCQw;c: peop~e am cboostooigllotetlllem. ButimpmonaJ :sdlip,jJ!. there eouWdbe possiblcviobdous" ifa. sa.l~peil)sol'il. dots not
I!m.ow where

111V3ilillluli. CUStiOIMe.rOf po:rendaJ. cl.iun:omer's pri·Q.CY ~s;als'O a major issue .. 'What are the .wles gov~m· ofa , ~ng ooM. ca~lls:. what dme IIlhese; ,calls are ,m.ad~, and, how ith.ey are .handJ\edarCd~ oon:euns:~hicih. :I'ruly pamllelrhe j'unk. .maiWson four cOlmpm:er. AFi.I1~ rou can ~poredlemaU;s~, 'blU~ y'Ou.may be Ite~pmd 'Iii) am.sw£r,Otll' aU phone. Therefore" knowing where 1,'0 draw t!h.e line ill dist.luibing people isa ~Pgj:n:of:good ~tb~.csmii.lllin.gfor scmri;()c .mKk.'Zlle:fS: Por eump~et in l:nwa, .RBloow has made it: comp!!lJI:!iiOry 'bmks: ~Ohave a Un ,of"NQ CaJI.'" cunomer .fur [eJ~pbone:nwn:beB~ wb:ol.slunilld. not be' disturbed with ticllemarb:tin:g calli. TIl:ds was in "espo:nse; to n:u.mler~ om COml,latiDCS aliloU'[su.cb .Il:uisanocca:ll,s,foom ·clJIsl!ilImer.!i 'Oil: OdlCir 1;e[epl:u:!ID.e CiI'1Nners. SQmemar~edng aUI:J:1ofS ibav,eacwaU, 'Qo·.in~dlhe [:enD P<emJiltio-n .Mdrktiting 1[0 dtnote tiliu::p,[OctsS of o'bt.ain~ng prior permlssi,o:tlttDiM !po~chtial orcxiisrin"gClil!c:omcrs mmaU or phCII:nethem. Th.i5 may 'be :ag;oodpracdee IlQ
a,

I(OSl!OP- ., ,.

fo:,Dow.

·Credi.t 'C3.rd com[p3'nie,s llJa.vealso [been ch:all,ed. wi:lo dll.bi,QUS pm.ctic:es Hkl! IiTUln :Ietcin.g customers return theE QUidls On el!:lueme ase5,. they' sent ,OlUtOmers a. neW' card, when dIe)' W'Illrcdto ter.minaR: me 'existin:.g;

Copyrighted material

IcudaCOOlWnt)" Thereh__ave. abo· been mmp:lainu of DOin ..mmSpaMn1[ (U' mis~m.di.l1,g merhods lo:f obug;iR,g; mj[el~[ ad. penalties, od, bad €lebo beimg;mbsEdized by good Icnsm!mer:s. . Del.ibl!lrate mi,leadiillg daillils mmy servie,e aile :odsounetbwcal. Fo'r leumpl,e. some tour II).pGtatofs, cLaiM 'at ,a::rtam IOlw price bu.t' ltBert! :UG' ,trimp iiretch'eQ" Yihie]l a cu:smmat com.es '1)0know mllKli1 ~a.kr~ Thaema:y
J

.3Iso be m(Jilt~o,bv:io'IJ!lssues s1ilcb as Iclisa:i:n;lin;a~o.ry i

of ousmmc:rs ,or :fudp:IlI'of dIa.ta.to leE 'us,.· Ii:OniU!fS S0meMD!!flt •. f,or aampl.e:, RevI customeR of Ilfe ~Ii1SU.r:amoeor maliialinmanoe may bwd.e:prmnent:j,nfonnadom while fiilling :In :lIppUcadon. :1£thlc salesperson Oil' age'l1l~ h.mdli:ng (be: tfan:sa.cdo.nis: 'ed,j~ cd" he may :stud ',I'm.in not aece[ptimg5JllIdh nC!W'C-ilUt:omm.
tl e3li:me:m
1 l

1. De&«ibc: :11.090" oonsmnCf beh.aviour .imst'Moes in d1:~ p~t: of goods,


J

],qyill,G

.mipt be different 60m oomnmer' behaviour

:2 Gi~,,::.·-",-,·-!I::.~ of'=i.n."'''·~i'hml'V''n''il!:- ~~b;U.fiII ,ofn.[~"'·'·aiom.::Ind ''''''''.Iuuml:lltiom and i:nalDiJiI'V 1'.0 . e _"'IL~ _.~-~-.ng~·---"!T .. ~par.i!.i!;lI.L.r~_ .r-~'" ---~~ --- -~-----If" ~~ -~~-~ - ~~":l ~_. .. I' 1~~ • -'~~' -~-~. ~

stofe which aM' some' d.isti.mlu.ishing Jarul\e.s~of iServ.i.~. 3. !Explain the mree diffeR'ol Ways: ofde6ning me servioe experieno~.e' seniee d19l'ft eOllcept:! mlOmCR(.5: IOf mn1h andt_he :servuedon. m(~del. 4. From wc'Mi[Je5 nCW'spapers or oth~r I01IJif~1 list Gow.n du:lfiy·r;&S1.!§lwwimgscmces: In Indlia, ;a'nd
11

ome otlte.r IO()!JD~:rya:t pllucmt.

'5. What. [~le does: :markeung :I!escuch play all!: 'wriow,stlgcs

of the :senrke 'b'uimwi?


wouWdI. e ,p,eratt h

6. How e;m a.. ervicemarkel1el!' mae use ,ordabi. miniB,g?HmY' s

me n~asary

~.tQ:~

Copyrighted material

A Ouestionnaire to Assess G',II,obal

Compefitiiveness in Servk,e lneustries


n'UfI,fO:~lowing (ll!.t8stiOlll,naire I(Wmtl sam(pte answtu'S

from a, se:N'Jee company il'llellJded aliter Isa,ch question!) illiu&tretss the, 'ganef,gl usa of ma:~~aHng Ire..

410 :Ildenrfiity'two imp.roy,ements expeotedfrrom by' :your Imajor D,verseas lerient,

you

search. 0'81 you develo,P 8speCiftc qluestiolillnaJlfe to assess 'thsi lad:Cl'Si 11111&1: dafiilils ,competitiveness, inl ,Dns' particu:I'al" service illljlUSby? '.

~. BeIer documsntatit),fJ ,s'Ra'sharperpTices 5. Ilden:Ufy two, increasing' ,d:ema.ndslaspirations


petitiYenslss, -~ Shaq)er ,prices. as WiS' are' ta,ge'oomPQnY ,having high,s,t' QV6mssds, whils ,8 o,rle~ail' show' can wo.rk at m.11ChIowe,r mswins. 6. II:dsnltlify IWO major .lisiks, (Business! f;lnanclatl Secl!JriltyJ aID.) II1B~your bl!lsinessfaces

o'rour emlJ·l~e&stli1a':may atfectyourcom.

]
Th1s Is a, snapslulVley caJrrtilJd out ,1111 organlzationis IIiII the SERVJ~CE,sootel1. Please, answerllil,efoUawill111 with 'reference t'O 'Jour lorganisatlon ~if a ,q!l.leslfon is: '1101relevant,please lmaf,k [I as,.NA,)!. IOrp.niIH.tionll,1 Nlm.!~ 1M VCEE INl1EFU4A ..
TIQN~LTRADERS,
IM~~r ,I,IUJ of 8111.1,..1,:: 'lIEXT~lES,

1. ldelilttfy 1,wo'sOlImes,·of! cotnpe(itive ,arlw!lntage

TlRADING

2:.

you have with resped:to, your major eom;p9ti:·' '(jon Imll your business: -~W1der satlmng' base' and finance faaillfY
1="1'011'11

~ We S.t'6'II1-.tfBdin,g tmsiness.. ana tfterelom loostOJner buyin9' ditecUy Is ,aiwaY's a 'acto't and' second~. the political insfabl#IJ inB.ny paR oJ' tile: wotIa' wblcfj, affcetJ.m. all spfttJ,rt!Js lot life ,1lHec's us: 'VB'Y muc-h. ,fg: .Argentlna' • Micldle .Cast; Sfa. '7" Illycwr qplnlGn Wh!at.am tw,Q, Imajor' ,ch;Bnges requlMd to' Im~e, 'India ,9 ,looalle.,der il:iltl'le,
l,

which a~9seeD as, an ,advantage by your glObal oUenlts I13Goause Qlyouli Ilooatiol'lllli1 Inclta,
1(8,) Pr:ofiolsncy Ii:n {b) U~B:IB~'riats

n~eto:llow1I11g! ~d'ef1!frryth.e lopl:Wo, 'factors,

~ Our ,umJerstandtng ot ,011r customs,"-&: busJ~ ness. and' It possible. their ,custo.mer~ 1;1.1.18:1-

se~ice sect.lr?
ness

I., ~pad fl!iom fndia.which

(E,ng:llsh) language -

1(0) IElmpl'oYse re:~entjQI\1 I(d!) ~peFi:enoo in seWiicesmor' I(a,) 1:u, and other I_ides
~f) lechnical

skfll I~g,)CWlltural1proximity to, the etlent , 1(11) Fill1loo¢lal lbeneflls ~~)Infrastructl.lre ~N.A

0) A'I1iY ,other '.,"" ...'..... "',

,'agars' are pricing and shortis.1'lead times I. 1'1"1 your Dplnlicm, apar1 'I\roml your bl!lsinass" Wihat. afle two ollun'mostp,r:o!:ltaJJJfl .eas, of Icusiirn9ssilill1hase'Nioe sector? ~ ,ANbus/llesses ,are pmmsbls as ,ton,' as we' know what our ClJSWllIfNS wanland ws' kieep' chs.n,giflg wi'thtimss' ,and .know whets to add
'value to 0111',busllll:lSS.

this ci1(1jce? .~ ,China; malot

oountry wqul.d bel you r cl1eml'Si Il1erxt Ictlolce 'of outsoliJroing,? 1111 ;Y0l..lf opln'ion whatoouldl Del M·O'Im~ior reaS'OI'iI.S~llr

:3. ~dQrilt:i~ ~l1e lOp, MO business 6K(JeCfatiolls from YOIl of YOLI r majDil' IOY~l'lSieas cli:an~

- FSs'ler uispoms ,time andneW9r ,qttys

Copyrighted material

Service Bra,nds:A, Case Study of: Xalnadiu

Buildiing: the IBtrand Equity ofa N@w liira'iningln:stit!IJtion


I~,..j;lut~-:!':I: __.~. - ~ ~'"'.... "11:"""''" . '.'-_"','. Jl",u_ _fL wars of"~''''' k.'_

In Inala,. In UIB ,aalFl:y nl,ne~les"m.ali'llageRl:an~ 'tI'alnln.g


11,.,1111&',Bstablished brand names: IX)lllduot'illiQ j:l!IlJtilllijC tr,Bimlil'llg pmgral!llll.me,s" such ai, Ihe Acililll'in1slraU'I1 Stall tOollege, ,ofIl'ndla (.ASCO at Hly,de:raba.c:ill,Uile M1anageiment DevefCll,·m.enl: [nSlitulEli" tGI!Jrg8on. )(llRI a:tJamslhed1p~r', an~l the Iinilian Ilils,tltutes 01 MiaA!agomBlilt at 2. 'Tile In,~om:paJ1' m'Bnagemel'illt cle,ve.l(ij)mlnt
1

'... FamUlarity 'wllhb~al'lld Iname!

5. In:viitalilotls 'fmmm9 s9I'Vioo IProvider sueh .as

'6. Affol'dalJlIIly UsIng tihesEI' :six maior' ~actoirs l(theil'S could be m(i.. e'or less Inl a given declsllonJ, Mehta. eva~lIlIat&CI ~
Xanad'u"s stamilng fifiom a ollstoR1lsr':sYllew,poilil.t. Pre,ylo:us, EI1XlPsiriem:oewas, modest lin .Xafla.d.u's case', :sll1lce iit w,aSi ,8 rela~l:vely' tnew IlIiIs1iltWltl:on.II had locatlo:n,-'wise,
~t w!as

diracl mail, perso:nalsellrlll.g or advs:rtisillQI

AhmedatJadl. luck now.

Ballgato.re;

Ca:I:cutta

andi

been ifiJi existeillce ·tor a)Dout t'our- years now. IBangalorEl, ol!'u\I',oflllildia~, blggest oilies, There was a raelwa.ystaliollil ·and a ~natiomal hlghfwa.~ at Cihiva.duliQi, 'the townl wh,ereXaJilaaU was: rocate<1. It was, a 'ltve·..tilour' run bV IIU:nuy bus a:t il pnoe O'f 'Rs 'mSI)', o:r ,I six 1lour Irun~IDYtrain from, 8an-ialol'e. The
4

about

250'

Iitl1llls,lrom

hoo:ses Iljke Uite, Tame", Ar,ollndi 11:9." 'n~e''Dec~1i1 Gr,oup". ,a. respected name ill tl1e, el1lg1neeming' :S80tOJ, :seit u,pXanIBC:U. From ,a.modest: beginnlngl In '1!992', wl1en it :StaJ1lH eondueti~g lin-hOllse traIlI1lng programmesfo:r tlhe g;rolllp, O'n ,a.n! experimental lbasls,!, U.e~pancled i,ls· rea,ch, ,and was, now oft8nng a. lran;gs, of manage~ men.. ,clevelopl'lent p.rogrammes ,(MOPs ";IU slilol1) r'£:IlInd the,ys'ar flhat well'S' o,l)lm 'totlile IndIan cD:rpor,ats' sector. The 'dY1larnle environment ,of the la,te 90&" posl:-liberalisSltOI'!l" l'rIaCitlilrown upsevera~ ,enalllengas:, wh'ich Dr Meh'ra~Xanacbts 11'l9wajri!JOlor w.as: oorttemplatingl ons' fi:ne mll!ming 11'1 p:1i11996.AfacA uilty INIun;1 ClUed by ~Im was due 110 'begln In l1:a"' n- hour, ,and Or Mlehr:a.1Fa!f1I,Q,Vsr what hie had beenl thlnldng,. ,and the' war:iolls loptmollS 'fDr gro,wth and SlJstemlJllCe baf,ors him.

cemtres or staff' ,colleges suoh as ~hose' of the Ufeinsumncsi 'COljpOrali01il ([Lie)" Slate BSllilk of' [ndia. and other llar:ge 'companie.slcoli)lol'ate'

iinstitlllts,wa;s located mill a :serene 1.2 acre plot, wilh excelle.lIltfles'idenlial faciUtfes;for 00 p&oplla' 0111 twin;· Sl1mingl basis, 'with an.ahed baltlils. lil1,ere was a:tso

r~Ma~i'on ,avaJlaJllls: OJ sq,uasliJ court, ,8. badminlon ooultt and a biUiards table,. apart: 'froll carrol1l!a:n(i tab!e tennis .. Word o,i mouth l1IadlJeen goodl, bUll bad lIlot translatedl fllil~O' ye!ry h'lgh lliates af gr,owth. The major' 'aotor, according to IMe:hra,was the growtht oti Inewer ~nstilUiles offerfll'lgsimJls1ftr.arnlngl ,proglrammes. and the, eme~gel1oe 01 I n,cle,a nctent, oonsultamts dCling SCI'llt9 programm,9s, in tniche ,arielS. Wiil, ~ow ovel'liIeadS and goodl IfiduS'1ry oontacts" Ihese consuU:-

Var.ia:bl.es :In:fluenclng :P'lIrchase 'Oif :Qj, Servia


lHe 'recaJllelilli Uile! d:i.scusslOflll he- hadl earlll:er ha;cI withl

'RlIIstoml DaflUwaJa, his marikEniing prolessor •.!!There are' man,y IreaSOIlS WiJiI,y consumel'S cliloose BI. iparfi:tllllar service proy,ider,. Ibranded Ot Wln'D'rafla'ed""
CaruwaJa. hadllssld.1be mS,jD:r rreSSOJ1lS,. Qocomltng to IMr lllaruwaia h'TIelud'e:

[masons XsnaclllJ had nat done as well as It siliwuJdl Ihave w,ss, due 'tiD 11&being sponslO:1i8d by an industrial'gr\'Oup. iliihe compel,itarsl"for ,e)(am:p~e,,!woUlI:d mot 'Ihe Deooan grrou,p"s reputa.tlo.nas a ,quality eliligi..

ants o:Heilied IrOOk.·bottoml rraltes.wi~ w,l1ioh .>cans,dlll could hot compete" SiS iii Ihad ·to,maintain ,8 reason,. alJ!l.!f lSirge staR',,, ancI,l'IiiIail1taln Iitsi 'pJlsmises, to 1iJ'1\g1l1 quallirty :s~anclards\.l'Ihe[)eccan gooup', 'when tlrley' o,pEl'lled the iinstlUJleto the IPubllc ,(oorpor,a.tes)1 ,al Ilar'ge. l1ad Inststadi,olil ve:ry higil1 sWlDiams, G~ ,olean;Ill'IIessand Il1olJliselk!eepirng. 'fhey f:en: 'tha.l: :llileir OWIil brandl nSlliIiIQ ¥I,as at stakia ,ev,erytime SOl'ill'leclAS' stepped Illto, ~1iI9XaIJ'llB.ou1lj:maml'ses. lMehra. hadl al~rkijng :susplcion tha,t: onEl' 01 the,

:2. kooatiol'lla'i CCiJlilv,enislilce :3. W,oml of moutl1 fili'o:ml p.role-ssh:mall aoquaint··

1. PreviOus· expene:nos'"llIny", amceslfl1endsltamU,

wit~tlile! IProvlder'

IDe,oomfocUlb(eap;proa.dhiIi19 Xsnadu,I'crfear of dl- . wllIlgirnQ wisdesecfisls,. IH'e was !also not WSIIY :au1'8, if I'lIsering 'Q!m:up her,ped or hIndered Is Iieputa.llonliRI

Copyrighted material

the oOljplOralfe,lmininglllilaJrkel. After alii" the tralilsf:er Gt [brand equity frcumone Ibuslness to another Is Inot 8!Llltomatlc. ,Xa.nac:l:u had 'triedl to oonoerrrlra~e 'on brand building maijml'l~through dlredl11ls11. ,Amr slil1s1l'i1g'was done' on~ 'fu::casIO:IlSII, Inirbe6ccmQmk: limes BIlId Q:rl!;liusIR9,SS: India' to,anlilOlJnOElI tlle'~lIJIII )!,eafs, oalendar o'tnlining prog:ra:n111iiR8S. 'Gi;yenlhas s!tral:eg,. a, lot 101 ,aUsl1IltiOmi Ilael been Ipald to deyeloping :al1ldl mai:ntail'li'nga d:atabase 'of peop'IElI to whon:Jmai:lers w:e:te' sen!:, 11me potential! ,cus1o_rs to WIilom Imaill'ers WEI:1i'E!1 ent IUs'lJany we rei H:RIIta.iRiI1lQI s managers, 01 mediuml to II'arge' tompal!1i~es •. Therr na:1iII'l&9,WEI'fe' 'Ciu'lled fwlI1I'II various :SQuroes,. slch ,as listings, In .ell rec:,todes", andrec:ruitment a.he.rtisemelnlS placed b,~Jileml In major daily , nSWSjpapem. The logic' was 'that: if 'Itley were hl'l:tllQI pe~pI9, 'tJl:iley 'would probably a:1'so,look 'f'or ~r:8Ilnll'!lll proV11ders. The e~~p~lonwcl.:I'ldlbe if'ithey had therr in~li1:ouse traiining ce:ntIliEiS. lb8 pliolng w,as: demel by looild.ng ,at 'liha ,adver· tiised ra.l.es 101' various 1111M's"Xl.Rllla;n,{Iolhe:1i' COlTI:peU, tors. It w,as ,deoidadl,s'any 011 to 1p09ltionDle Iinstitutel 81tthe premluml end"and .the Ipri;ce, ,of :il5, pro·, gram meswas, there:to.rEJ'closs: 10 'the top end Df UII'
i

A~mos1:as Im,Jxu1ant:ware the diJillilllg and] recslden,. tialli~'acLmtie!s, An experienced ,ex-arny maaags'l' l'CokeDI ,afliertl1l&Sel,and w,as ,smpowar:ed DY ~he, marnsgement to Imn ,rt with a.\riew m :saUsty ,CIJt!sro.rm;.. ers. He also, supeNiisea IRlfnal'llcli bus NSGNslllons,

~srpaniclpa:lillts, which w,am oUmGliroed. Looaltravel


all81i1gemeills we fie also Linder hIs charge,

I( Intal1g.lbles

IP:emaps, the nlOS1.,cfla.llenglil1lgrparOilad Ibeen til build a fUlling of w:annM:i1. ,a,feel[l1gl~Df' eil1g1 ,B,t:home awa:y b ~rom ·tl1e~r' homes for .hel pa.rtl'clpal'lts:.TIhls 'was, ,QClhievedthritnllQih loe-breakingl paries en the' fl'~: 'BV8l!1ingl'Q,f a,lprQgraJmlfll'lls', w,hare talentedi :s[ngeilfS Of stQ(~.ellers Inl the g,rllUP were enoo:uragedto rldls!" ,ooverthemselvsis. lin IOI1.Il-t.erm ,progr:ammes" a
p:mtic(palil~s,lbisc,rea.ted an ,swnlJS' 101!bllildtasm

ICflcke~:match ,anda. ·trip to nearmy Sigtltseeing ,~Qs.l~ naUems Il'ike Jog Ifalls, Hampi'we;re' organiHdl for the
,5£111'11 nd ,entJiJ'IlISlasllI. a A,.'QI1DWlPIPhot!ograpiil of (he battilil, and a. list. of ,a..l1..1' .... ' " 0'_f' pa!'U!,i~pa!l!W.!1 It~.·11- Ih cY- n·.a\,llu 'u'" L;', .1'1lo¥, ."~\" \ca.!!iNI _-,e ",i\I #II. _.!!.Nresses . 11"" was prnv,i!ded '~QavaliY;oli1a'. his;alsD im:::luded .mai.1 T ,s;.ddressea of faCulty who 'mug'lill them. ifill easel lila paltloflpants Wishedtololl'ow U\P,,· Ih1illujays,we:re, ,celeb:r:ated' diIJIliing~li1e' IprlQ .. 'Qramme by cu,t1ing a ,cake' at 'tea,~bre.ak.A lnew-slet~ tsr pulll i.shedl by Xanadu was mailiedl quartany 10 all [Pa:s111l8.rlib)lp,atIlts 01 tlainiillgl programmes.

,spectrum .• An.othet nove:11techrn,jqfJe )(aliladul liIaol


em,pto,ed In tlile early stages was; 10 invite 'Yisitllllli

faculty ~fo:mlie :IIIIMsto ,conduct many' o1'tha sess'onls In Ills 'tr,aInlng programmes. TlhlsstIFategy., m.oug'h expensi.va, createdl an Imge 01a tqp ,quality Institution 'fl'Cl'm day ,on,e. Later '011'1" pemTIsflent. raeu~ty~aboul ~&m reorulted for ,aU Imalor funo-

tionai ar:eu.

[RC5POIUC

Timl!l! and COQ,[tesy

]:
ll

Tile mlil;g[bles, a'l ,Xanadli.i-rOoms 'Oli' star". ,oJass;· rooms, compll'tem, library ,and f;SOiUlty., Welle a'U~op· end'romlhsi Ibegi'lilliltng." Eachl 'D~theise was de·,
sigoedwhh

,co.mfort leye:11Qf customers ~pBmOipants o,t the ~:mjningl'pr'Ol!ramm.eS)1 was 'IlIitB!t.....-:I!i 0. I.J - T.i.,. ... III..'~IfU.. h·~eli,illlA!l'Ul1 _.O'1!II!I Vi~' c . . ~...... '"'1 i'i _ .IO!,QO .. _._ .. _ .""l"' 1'.. ~rnl:o·. !'!<fiiI .. . 1,.!11""'7 .a cassettes 01' the II'alest.managemef!l~'Llms ontDpics tlie! liang"1 'from'ililaJi'lca and cos~]:l'I.gl to
tllISI
1

a lot of care, ,and

The: ,othelr oomerstOI1lElS 0" Ille' Xanaclu exper1ence vB.mied by particl,pallilt IreactJiorns"wGIr:e' the's:peed of res,ooH to queries by pa:l1ioi,al1lts. andl the oourlteQUS behaviour 'o~:,aU its starH-'lha (iea~chamllioms [beilnl~lltiJe people, Imannin:!;IUle, 9,xscLdv9 Hlsidential [lenlr,e" lie lIbrary, 'Ole' phOI:ooopyingamlre· .en,d llila computeii' CGliltre•.INotto Mention ttle security guards. . whol wel!'e' oftell U~e f1irstphrysiea1Ipairn,t of oonfact. ,(moment of ~rutl1l'?)as, fall' as, 'tha Inoo,mlng. paI1Jdl'" pants weI's ,concernedl.

10' UiJe'n.eeds '01 working msmlgsr:s and ihad ,alii,,eriivi~ Bble collection Ina sholil spam ,0" ·time.The' com:pu~ ler ~ab !N,BSIkep' open ,at liI~ghtsafter participallt. feedbadk Indlalled ·Uite Ineed for it.

bem;~'liIiIal'klli1g alildglO:baJl.satfoH" Ttm books cate-wei

]
IMr Mehrs. wonde:redl, Iflavingl Bo!iJ:ieveclll suoll,exoal~ II'&nOEl' Us se:Nice mf~:i' what ,Q!lsewas 'naedetillo in

Copyrighted

material

grcwll'Growth

or! '(ldl'ng negative., Were 'rh8J doing sol!!ril,etli1lng wrong? W!as II an 1IIlilSustalllsbil'emodel7 StiMJUlld

rates Ihadfallsll1; and wam, :in danger

lMe:hra as he prepared to luav,e' lor hlsfaeu,lty

These waresoms' of Ule! qlJlest~on9 bothering

liIeydfversify? If SO,"intoMist amp,?' l

tlng, which wDlIIldll'eCOmmend some acttonsto, iIIe governing ,cDuncUof XSI1E1d'U en 'Ihese lssiuss.

mee'~

Copyrighted material

The An napoorna IDabbalw,alla*

IC:o,mpany ltd ..'(AID,Crk*'

Mr K!Ii.Ilkaml':s;Il1o.me-mll!id:e lunoh 'rom Ills, wife. Kasbakar has just: begun h~s dally rou~llne' wtll[jch overtfte, ns'XI few ~nour:s wflill :SEl9 h~mj along 'w~Ih, Ml.llmba~~s, nearly51JOO other dabbawalfas, defiver near,,:2 ~aj(h ii'timll" tJO~9S to 'w,orking IP9opl9 aeross the lOlly; andi laler ralum the 'empty Uf[lrnl boxes, to, tIileir respective Inom.es by evening. . It hs a. W'Ofifdlow ,p.rooeu '~hat ilis· run by seml-·
I'litemlesarnd Illiterates,. has been tQw.edfol' [its un-

Irs 9!:OOA.M. lin IMlI.lInllbaJ!,and AtullKasbekar of 1he ,Allnapooma ,Dabbawafla Compalil,)' Ud. ,tADC)1 [is at the doomteps. millie [Kul~mii resioenoo't!illl OOIl9c~:

,a1umlfil'iuJiI'!I[ O'K consists b

of discrete

oampartmarnts

which hold [rics, [Inti, dat" .clJl.llOl, EI,te. ~ the stapl'e dtat 'of mDst NOI1.hI[ndlans.Eal,ing 'Dut oltlil,a da.~ba

,oomes ol'oserthal1anytmlngl
'eatil'llgal hOf1li1e.

QI,salto~he raeung of'


.

mal(ihedlwol1lcj.ol:ass ,emoi:en~ analnas tOI1POra.1es 1Jyingto I,e.am IliIa(urn;da.milenita~s of :sb<: ..slgma I.Isl;ng. ill ass lm,odet
Daspit.s, ~heir huge, slJoce:S$ iin Ihe past. the IHill'ilapooma. Dabbawal1a' ,Company (JOI. lis lodar.y at the 'cross'roads. Th,eool11;pany andlhs! da!bt!awaUa. tmda U:setf ,ar'B' 'I1IOW um::ler ~liIeUilfeat: ,cd axUnetiofil; ,and thIs despIte thel s,fficisnCJ ,and accurac, ,1)1: the l'IIess is largely attributed to1he ,change llillwolikiing and,s811n.g tlIa:birts '01' 8 fast mooe'linisiing papUIa:l.iol1,.

the dlahbawaJIlas marge ,8 pit1anoefolithelr deny .. ,ery~ fie ,~liIarge' ~inl Ute y\lar .20011! is, aliOUlll1dl As ) :200fDf' an ftl!ltlliEl' month ..Th~sis,'a:r 11:6ss(hanwha't it

The ,seooml' ,impotitantfactor Is tile Inlgl1ly 'svolNed transpol!tatiDl1Is,ystem Inl Mum'baJI, MliImbail"sSl.lblllli'~ Dan.,e'I'edl'ie 'trains ancilBEST buses efficienliy 'oonmlecl dlspaJa~e ,aindl'far flung (legions of Mum'bal mal!t~ ilngltJhefoodl deHv,erys;ys'tema vitable model. The above fadol'S are coupled wlrlh h,rad Hilat

w,(lulcl cost fur

;8

,eate;rles. Thus Il1eslthy'" home-:made, fOod dellve;r,ed ;at a high'~' Clmpe~itWe' rale' rnade the' IIj'ab'bawa'll'a 'DlIsi'ness an l,mbeatah1e, l!1ilodeJ....-allea:sl~UII the I'ate 19908.

person to [eat tn hotels; or ,o,lIer

,l:Iab'baw!anas:remaining I'lIfgh. 1ili1eldeelinls fn busi~

[ 'Tlbe Mo(hu OpGrandi-~F'ast.!;' Fo'od

J
ft

The con~ep:m laf dabba;wa1Ja delilYB'!)' syslsliiIiI :starled [1\ Ml.lmbal 1- Ullel [i' 1A1_... ~ .. ,, n . _ Iin_Y D8""":.. TIm·· ,eCo,. Ii popU.iluO_.n 9 il~J-, .e ., - II- ~i -

then 'was a me:l'e! 110Ia.lms, as agajll1s1the' Ilorethan 1.;30 c-rore i:I its 'ioa'ay'. Thara were 10 Il;uJ$&S, r subo IIlIriDan lll7ailways, at: '~Iilal:tJj'met. ..d 'ills' d'abbas· were tll"ansportoo on IJlc,cl'QS", liIa.li1ct arts ~llullockcal1s. c ,ana larngas (lhorse loa:rTiages,)',.1il1e servloElI ,cosl its 'Culstolilersa.rOllllnd!2 ann~as ,(ta' pajse,.OV-Eu· the years. U'iliis evolved into, a. co:mpl'e!X:network '01: de~N" ,ery. ,and in, their Ipeat ,days, iI"l1955,. the dlllb:bawaillas weirs, een~eliingl dose, ~.O2 118.1<111 a lpe:r day .. dft:in The core,'aetor Hlat: has, :sustalfilsd ~hls busIness model iSI 1fte' ctesire ,of me ,av,8rag:s' mlddle ..class M:umbalkar 101 ea!~:hOmfl·madetood. 111£1' dabbaor
i,

Thel dahbawaJla delwslY m&1W011i< Itlns ol1~he lpri·n.oi [~~e' a relays,ys!em. The dabbas ,are Ipassed 'Dn 01 fmm one daJbbawaUa to ,anlliililer w,ith SOMetimes, the I:IiJllchboxes, ctnm:gingl hands:llIpto4, ,or :5 times be'forB fin!aHy reachin,g the cliIstGJiTil:sr •. The enUrs l''I!Il}lwork Is di\l'i.dedl into cl[li.Is~1;ers f o l'Oughl:y ,20 men. The IProcess, lbegins with ttJelirst ,group Il>iC!k:l'ngup, the aJumllillum iboQ's, (tOm homes er ,B.cenlral kiklilen. IDepending upen "'h.e dista.m,ce, '1:0,be oovarisd, da!l:)l!!Ias, are coUected hom Ihese [p'ao€l's IbetweenB QlJIldl ~Q! I'n thElI mom'lingl• Earchl da:Dbawa!lla covers rough1y 2.0 houses. IOovering 'Lhese many liIouses ,qulokl~Is mloteasy In a. olt¥ liike Mum!bai. Tbellileal ,dUring summer sindi W,SihIF·~ogged I1)8,QS d:ufii'nglhe MOnSOO'ns., withl the peak-oou r tra,t' .. fie 'Ihmwn iin, rnnak1illll1l8ching ,sa.ch nOm9 tl'l:atDlII.gh· '9S1 part ,cd~he 1l:1'OO9SS. Atea:oll dab!ba. rece~,vlng

'I'Oilnl:" UIBI d:abbaw;allta has to' Ipalik

111151

cyol'e altho

'" D:.bb3i'iinlllti

,~, ,A'a$C P!:¢pilIi~by A KJ'ii:sb<l,

.I'Waiil. Amit :fDat«iml :lIho:ut the .Mwn~:IIi. :ibiha_lLu. d

Tille: tcil'lifi

:St:al1i&

for dooi:~to-doo:1:'hJ1ii.n ,CitGfIe'!'s 1nloca1ll:Jin,G:u:ag~. KI:tmu. limit 'thomilSi P[iy~h PmdIiliY"Y po .R..ampl:Dad. a~

on.pu:bHdted.

Copyrighted material

gate. go, to thle ,cHent·.s, !hiDuse, wlhicMl ilnMlJJmbal1 wOWlldlllWaliaJ~ly be ,S IJa.t ,In a mu:IU.stol'led bui:lding. eol!,eol~hel IUlI1Ich and Iilan 'CQII11l9 d'own ISgSJA. 1bese dabllasi are the'l1'carted 'off to IraUw,ay sta~ lions, on b:1'CJc!leswham 'tltley ,Bfa [loaded om 1:0 me' specmfied l'ocaJb'a:in. A secoll1d set of wG~kers unI'cal[ ~hem Ialt the IGCal sta,tjQlrilS Uke, A!ndl'ler:li or ChWlrrchgate,•

Th;e '~l1Ilrdset O'f CBlfder:s waUirn,g althe r Bs[pectiVe SilaUOllls 60111olltand' asse:mlbls' ths' dal::¥:t:>8.S. TtilJel SDI1[lI1gpr,OQess ls dQl'lIe,eiOr1]ess~y-Uu:nJsaJliClS, ,of
1

Ufllns sl'esoMted

a maIer of minutes-thanks 'to an 'effrcie:n't, evolved ,coollilgsys1em (see box, be..


IIiII

low)'.1ihlis ;SOr1rng.,IP,fiotessis II'e[peatea aClIDSSman" -.stati:onsfor ,afea~wjsa distributiol1.

'[he Codim8 Sysr:em

J
l

Each luncllbo,Xldabba has, martked on il a circl:e 01 a. s,~iflic col:rJur and ,ani idelnli:ty num'bel! I'llI!' examp~le '-K·IBO~1 o..·19lAJ1 S'"--Ylnere Kisttlel Id'en~jty letter 101 the Dabbawall1a" BO' stands 'for ~he area fmrli1 w'hsl'e 'Ihe 11'llIl1'11ch lis to, lbel cQUected, (IBorivali).,thel l!iIumber 10 r'e,lsrs to a, mDrespeeificlocal.itJ box Ilksl Nal'ilm8!n point ,911eaand19lN15 rafers tOI ttile 1~9t1i1l Building and ilia 151ihl fl'cor in IfNjl,ariiman IPoln,tllli9 S where 1f1e [OO~ Is to be dellv,:erledl. ,At eaeh smtioli'l",aifter' the sorting Is flnishedl, hundreds, of dab:bawaJllaspour ,ou.t arrha raUwa.y stations 'witlllO!ll1g wooden orats's pac'kedl willhhlsolt:ed-OLJIt lunch boxes. tlli1.ese are In 'tlllrn l1land'ea over ·tOIIhal hugenllJmbar of wa!ltill'lQ d'eUvery persons whol setoff en their' btcyolles: ·to'offices ·across; 'lili1isl city'. ' Tlhe lu-nCI1lI::ulM!9S; mach: their [respedive destinations betweer:lI111'~45 a•. . and 12:30 [Il,'m, ooveri.ng m the joumey 'froml stan to' 'finish Ina, matter' O'f abouit 4, houm • .ADBII"Ituu:h hOLllIII'~s aveI', the enUre p'rne8SS ils 1i8p9.atedl in reve~el. The dabbswallas agalnvisn: the 'wam-p1aces iin 'Ole ,afi:emoonlo, ,oolll 9Ct mel empty tJiffins al1d] deliver them II) thesita1l1ol1s vmefie 'Iraln'" 'w~selsortlng lis donel and the' dabbas ,are [loaded ,onto' the IltIs,peottvo trains:. The [loo'aJ C8rners ,8.1:the i subulllban smlio:ns, collect tihelml, :son ll!iJelilmout andllP:roc.eed ~o delivell'mel 'I!Imptytiff:i:ns baekto UitB residences. Ttle GaIlbawaJllas 'w,or1!C2 hOlJrs,a da,y. :tear rounCl]·-11ii1 tile s,wene'l1nQ 'l1ea.l.of 'May 311dilhe drench1 [ il1g1 monsoon of .Jllme, Jul., " Aug,lJst •.iliihey CJ,cle dislBnces, of' IJJp1lo, 151k1il1lsill tile i(~jf:Y",and [pl.Ish IrolJe,),s
l

:sta,cked with 'ttffln-.oarnl'ell'SUiJfOugh 'the chaos ,ot MUmibai':s, 'traffic jammed streets alwa,s delivering rOil Ume • .As is o'bVilous, the ,enUrel systeml d'e:pe:nds en 'leamwo:rI'<af:1c1 me~culCillliS 'limingl, tn 'U1el words, ,of ,9

,lUIbbawalla. ~Once, you tI ave, ~liIe boxes with YOLllI. you can:'~:e,ven stDP' rogo~o 'Ihe'~o!ilet beoa:use II YOU'I!'e [Iatel b, 'ev,enlfwtll or 110' minutes (he chain gets:disRlptm:i." So Illtegr:a_llhav,e, the ,dlab:bawaUas Ibecom.e 'I.DIMulinbai's way of lite Iha!tth,e Irai3ways, hav·a! given.hem ,a .spOOlaJlII'EIHrved oompartment: liIeKii to the' guard's, cab'ln on oelitaiflll sllbul'!bafiltJi~rns;. works (lu,1 10 ,on.s elTor In ervery e .mlliion demilvetri'es., ,or 16: mftilion if the IliStum bilp' Is InclLKJed. "III 'we' made 1[0 mistakes ,a mon.th; 1110 on,awaulCI1 use' ours&wWhal. !mal~esthe ,en.tire'process ,amsziing is the, asice~" :say.s: a. ,aabbwalla. II~is aocuracy 199tri1sraiedl by tOI1~shin;ly low [Ievlll] of mJs,tal<as 'Ifla' ,cj1a1:llJilwa~fas: shear necessity. make despite tIiIet'acttliJal most. theiS'S persons: The da;bbawaUas I:J&cam€l. w,onldfamotls; M,en a ,aile seml·Uleraleancllmtelrats. f,ew '~e8J'S,al.ol US busine,ss magal!irne Fames gave IIiII spl~e altha ,complexity ,and sheer voluiI1i1Gof UIII'ma 6 S.gma. pe.r1;oonanee rating" or a 9s!t'999999 the business., tlilel O!OOOI dabbawalmshs Imak.e amis·· pel"Ot'Ilil'mge 01 eorreatnes ....... hleh 'teolilnlcaJllr take' cm'lyab:out. ,ones, in ,every'two, Im()nlh~li1k:h means on.s elil'O:r tn, ,e\lery :silll!!mUnG'" mm.S8.C1iolilis.

From Deli.v,ery 10'),:5:1;0 M::lD.ag:emre,o.l: Gums

0·'

Copyrighted material

da:rDbaw:allas now i~O'uUineliy ,deUv,er talkEi;to hign~nyiin{ll ,oo:rpora~es and D-soJil;llIoll stl!.ldents 01'111 Isamwom am,d how they 'lmJslrnage Oipe:rationaJll IIMJr~ ,dies ,ami still ,SUSta~11I quality".

The dtabbawaUas. iin realf(y., 'wnh OJle mistake' iin16 milliian de'liveries" are levell bette:f 'than th:(J16Sigma standards.
the

so8l'e olosure of textllel Imlns, In me, U1BOS deprw,edl the da_b!bawall'as 'I)f ,one' of thelir largest cuslomer segmem--:the Imiliworkers. l'oWaJids 'dle, 90s. ":e5t food ,ehains ,and ll"Ud ..side'
"q,Uiolc~blre"'~estaurallts In and aliound cllce locall-

TIHE GIENESII 0:.: 'THIE


CO'MPANY
TIll :2004.,H1Ia~allbawaJlias; ,o~Mumbali functlonei, as il, loose and IUI1I,orgB!li1isedi ,B9Socialiol!l oJ lpeople. Each dabbawatl~a would ,oharge' ,aooutR,s 210 pElr per,sol1 per month. ,Abr Ipayin.g the, Westem Rail~ wal, fOl'uanspo:rt. 'the !\est wou'ld go ·~,o the
dabbawalla. iliil1s, Clal:lbawaJ1as naCi ,an ,aSSooaH!UlI' celleC!! the,

Uesstaned to' ta.lte ~"emrtal'll. Added toUllls, W,IS; UlSI rislngl t!lend '0' W'Dmen tihemselVes goingl off '~o'work. lllle·post-liber:aUsaliom offices 8ndwork places atso, tended to have ,good qlUaJityci;l1il1eens and 'f'f.lOdl
Olllurtsobviating tl1le need 'fOf "ood 'to
beS8tll1t

Ih.ome.

firom

111 view 'QI~e, labove, danglrs~f:!I tJileir bUSiln.&ss, tne dabbawallas. nea'liIly 1:25 !i,eaR ,aler they ICBme' into, '9~isteli\ll:e. de~d9d, to, o:liganlsEI,lieim'selves, into, am
IblJ5'insss-and 'thus, w,as bam The ,An_,....... ~ma,rn ...."",bk - IN~III~, '-"U_pany c L,+.-.Ii - ('A-OFo"._ nSI.ntiIl"I.""""m -_ ___ ,gw.a. aa '1.!!oII.. .·V. lafga'ly ilnspi.l\Eldl by Olel cO.-Qpel'auve lmooe'l of the 'G,ujarat CiD~oper,atw9 I~Ulk IMarketing Fed'ersUon (DieM MIF),. ill was esss(n.liIally' a co.m:pany II'Ult be,longed~.!lI'ev,sl}' gIl!tgl~a ,da.bbawalla.
'organised
t~ -.

ma.ks' a oQnltrilllutiD:nf)~ Rs 10 per' month. The As ,SOj(Ji(WI· ,oofleeied woutd, after Imeeliing Imlnlmall ,adlliiIi'Iil1istraliol1l e'XiP9Ii1Se,s:, 'gotowardsl c!hamab!I'a C8IS9'S ~1iI~e'feedll'ilgI1tle' poor.
1

1Mu:mbal '1itffili'llmelil's Aoooolation

whe:I1I' eacn would

The purpose,

'D~: or'ganlslngl

lhemselv·es IIiI~O'a

Tihe IDecline
De~ilethelr effioiency ancilProm,p1ness, ILheriBwas a 'gr:adlJa~decllne in lli1lJmiille,1'S llilthe business, 'CiIlt' tIm dabbaw,allasl.Dli:s w,se, due 't01 ,s, [combination of fao).
iD'lS"

Icompany wastwo"'Qlll ~t. aViB flemincreased g bargaining Ipawer ,and Qnsured the 'e~istell1ee o,t &. social :seclJlrfty/pellslon·illlke, pooUng' ,of funds 'f,ortl1le
dabbawallas

Athlr,dl

and m.os~: ImpOrlalil,t Ireason was' 'lime

w,llen

the, retired fIiO!IiiI1IWOI"k.

'gsn leaVing h,OQl;8',earlie,f ~hal'ilbe~bre.Ttle, large-

,umplloyees Ihad a 'change

'fills p.robIEl:rns;lar1:edl I'rnthe 119608,wh.sn ban'k.


ii!1il

office '~!millgiSland IDa-

daibbawa'llas'ambiti'ous p'llaIilS~o IbraniCh 'aut into othetr cities ,of II'naiB..The dallbawallas IreasomedUil.at. (lin olties aoross India Hlellil wou,I'd eJdsllprospeeUv;EI, C~tantelB WilD w.!Ouldstill p.FSfe:rihGma·madefoodi and 1h&y hoped to 'C8ipitallse en 1'118.

1. What measulles ,cbeslihs' Anl1lapooma Dabbawa'Ua 'Oomp'any lid. ,(AiDC) llileedto take· 1:0 :8!lam the dOOJlne I~n:Us buslll1ess 'd:ue lowhlit are Ilarge~! IIXlemaJ s.nd oLlltulia.lr,amor.s;1' 2~ Do, theldabba.wanas have ahel (uganls8liomal capa.crty 10 tmlils,pIB.nt~l1Ieir business: Il'IlIOdels 1:1i'Ii ether cities across Iindia?

a~ 'Canl~s

fsslor&-bel ife;plioat.ed ,in omsII' ,citias,'j!

Sl.Icoess In Mumba~whichl

has an 9!ldsl'Isive traliilsportation! system andl other such unIque

Copyrighted material

Prelude

to th Seven

P'

oj

rofce Mark Ung

33

~ppendiX 1.1 1 l~-----------~"'_ Prospecffve Markets for DabbawaJlas: A study Based on __~Demog~~~ra~p~h~lc~De~t~a~"s~of~N~~~~M~u~m~ba~I •
The appendix provides a snapshot of various demographic details of Navi Mumbal, an emerging locality of Mumbal. An observat on of these trends would give a general idea of the shifts and evolution of ex sting and prospective markets of the dabbawallas.

25
20 15
10 5 14.9

25
16.7
~

191
!""-

r---

I--

r--

11.7
r-'i~

o
~~/

0.2
~~~

IntP~
r<~~t;O~

5.7

6.7
-I

,__
I

--

~.. o

Fig. 13
Per cent

Percentage Distribution

Ocoupanon(1991-92)

of Working POfX1lation of Nav; Mumbai by type of

20

10 !8 -r4

18 18 15 16 ....--: 14 f012·r- -

16
r--

16
I---

J3
~
I---

If--f---

r--

6
2 0

10

!!!-

~.~0t;pp

1 r-.

If---

~.//.s~ ~/
~

,..

/'

~ ~/' ~
.

/'

RF
\,0

5
~

I 11

c#.".<1 ,

~fI

eft

-<..~-<..~

~/

/?

Ie CIDCO 20001

Fig. 1.4 Percentage Distribution of Working Population of Nav; Mumbai by type of Occupation

ma

ra

S4 Serv
70 60 50
0 30 20 10 0

Mark ting

63

34

VI

um a

Greater

umbat

ThanelKalyan. etc.

HPS19910CIDC02000J

Fig. 1.5

Location of Workplace for Navi Mumbai's Working Population

70

68
61

60
50

I'

40
30
20

,
26

10

-~

13

16

I'

16

o
WaJk

',' f

Bus & Train

OWn

vehcte

I· HPS1991

DCIDC020001

Fig. 1.6 Main Mode of Transportation for Working Population in Navi Mumbai

20
I I [
I ~_

II

JI_ I
I

.;
I

1:51

]]10

.~
I

_-I
I

Working:

11'111

Navi rM,umbalI
-

20
I

10],4
-]
I

1 I
I
I

I
I


I

I
I I

~,2

r:::J7

Betterplace'ID ,sta, 1~,_....,_ __

-_

_..22

BusIness iln Na,vi IMumbai

Copyrighted material

Foodl,andl'oaterl.es---3S% 'Tl8d8 and CommeliC&--31%

Semce~13%
'flilns;pol1t: and Commllll'l!icatio~7%
Computer'snd tel'ecorn peliphera1&--4% IEledliical snda'iectronlie :shop---4% 'Qlinics ,andlmedical servi~% ,Smal'll.scale: tmanmaclurers--O.3·%,

Mlsoeltanoaus,........a%
PIg. 11.9 T}Pes ot Shops

'water' :sl.lIp'J)1y _'

'Waste' dilsposel faeiJIy


'fOilet

I===::=~~=*=*==*=*~
~ ~ __'
-2
j'

;;;~~;;;~~Wlll-Tlll-----l=e=:=;==l==;::::;=~=~~=~-.'9r1
==••• _8,

facilityj!~a!~~~~

Eledricily -~~' catenes,

Tamspol1:
f!alikil1gl facility

iiiiii===bJ~:bJb=
!ii.~e
2(11

I=~==:;:::::::;==*::::::::::••

AiP,proach [lU8d••

,
80'

_95;
90 '100

·91

401

5IlJ

60 ,

'11)

IRE"ERENCEFO:I,APPIE:NDIIX
DtmtJ,fI'D'Ihic Sc-en4ri~ ,olN4fJi' Mumbai" Leeeure byPro/. Kitmlll: ,(;upt~ H,ead. Del)l. of M~gra:don& Urbm. Srn:lidiafor'opwauon JuIDy ,2003. ~n'teltilado·naJlnsd.wte for Jlopului,(ul Sd.cu.ce.5, MllmbM .. ..Day. ] I.Ob,

Copyrighted material

I11g
Cd)

37

,_I

S t IId 'I 4

Kadavu Resorts*

Climbing up the steps from the boat jetty, Indranil Banerjee could hear the music drifting from the party that was happening at the pool-side of his hotel. The company hosting the function was part of the regular corporate clientele at the Kadavu resort hotel. Banerjee could also count a sizeable number of resident guests sitting around the amphitheatre watching the Ka/aripayatu show. Looking at the general crowd around the hotel, Banerjee couldn't help thinking about the time when he joined the hotel as general manager Just 5 months ago and things were not as smooth as they are now. Yet the future for the hotel was still unclear and Banerjee had to decide whether he should follow the current marketing strategy for the hotel or not. Kadavu Resorts was set up in the year 2001 in the then sleepy fishing village of Azhinhilam on the banks of the river Challyar In the northern districts of the state of KeraJa. Designed to inculcate arcnttectural designs of the local maplah and Hindu culture, Kadavu was intended to be a luxury resortcum-buslness hotel with the distinct charm of the serene Kerala landscape. Selected as one of the 50 must-see destinations of a lifetime by National Geographic Travel, Kerala was stated to be one of the 10 paradises of the wortd. With a catchy slogan of 'God's own counlry', Kerala had managed to earn a place for itself on the global tourism map. Yet a majority of the International travel groups covered a circuit between the cities of Trivandrum and Cochln, i.e. the stretch between the southern tip and centre of the state, with very few venturing out to the northem dlstrtcts of the state. The only tourism attract on that was proposed to be developed in those parts was the Bekal Fort area and even that would need a few years time before It could have appreciable popularity. In a tourism product, the destination plays the most crucial part in the decision making process, and the factors that govern the attractiveness of a destination include everything from the Infrastructure of the area to the local culture and natural scenery. Kozhikode had Its share of resources which made it a possible contender for larger tourist nflows, but the rest of the factors necessary for greater penetration of the huge tourist market was yet untapped. Kadavu competed w th two other major city hotels, Raj Hotel and Royal Hotel for a share of the tourist and business inflow into the city.

[ Kadavu-The

Ri

r Bank

Banerjee believed that the most dlHerentlatlng factor of Kadavu Resort was its entrance. '"The un que view that one gets as one enters the lobby is outstanding. Spread over 10 acres of prime waterfront land, the landscape using plants and trees, enhances the ethnic feel of t e entire resort. It is built from a spec al rust stone Indigenous to the Malabar region and the architecture here harmoniously blends the Maplah with the H ndu sty1es giving the resort an absolutety unique appearance." Kadavu is located 18 kms from Calicut international airport, Karipur; 150 ms from Nedumbassery

• Prepared

d, Reena

thy,

ma

airport •.Cochln;15 kms fmllm ,cHy center,. 'Cailicut; 14 Ikmsfr'Cilm Ca!llou.t ralhvay S1atiO:Ii1I;811i1d 366 kms,from IBang.'ore 'vis. Mrsorei and 8and1pur N'allonal Park. It is, s~tU'a'edl 011 the!tranqlJ.lIiIDanks olltls, OhaU,ar--the Ilargest backwaters in Malabar, 1(:Ptea.S8 re,ter IExhibit 1."}

Ex1tibi.ti .. l

~----------~~~--~~~~~~~~~------------------..

Toulilsm Map ,ai' Karole

---.

KA:RINATAKA

(g,
,.
~

IlibpnollD 8I!aMI

:sw.~1

$ ~~.
~. .. "'9"01"111 ,ti!!Ii~QIgn

. '''''_~:'~
'rqI~.~

'In ....... IIOMJ .AiIIIpOn:

!,,~.~~.
~RMM

line hD~el has 17 indepelild'slll ,oolta,g:esand .fiT eleg:alinJy styled lrooms sullas.The'· rooms. a~r9 oantmJ:l!)! ,air..coI1D,i1ioned with viewstl1la! ofler a breathtakil1lg blendi altho lorystall ,clear lbaekWate'lfS SIJIII'IiCiII.mdedby ,coconut pJanta!tlo:ns ... Moraovslr tli'le lucid I1\OVem8l1ts, 'Oil the ;'vaJlsms' (tocal canoes) er fisherman il!1~liIe![rvancbl~(loca.J fis'hlillg canoes) on ! the lbackwaters provide ,a panoramic vfew. Apa,1it f:ram a!1~tl1lese'., '0191 hotel ,a~so IPfo'ilides an AYUNedic relru:vefllsHc:mcelll~er olf'eriing tradi~h:mal

or

turall programme",

a. corffee,Sitl,op and a mulUClJilsiililS' ,restaurant: SSNhllg Malabar dellcacla.s. It also has ena of the ll.atg,es't ,amoebastulped :sWim~ lmlng IPDols.lli1!soutbl In,aia with a js.cuzzi and! a sepa: rate' ahi:ldren's 'Pool, ,a child'r,ep"s p.ark and prll, alJ'iea ,BIi1IIlI a tsnliiJS 'OOll.n1:.. Fiormeatin.g anDi l)anqtJI:st rune .. Ullin!;,., Ihe hole:1 also, has 1aciilities Ilike 'IChaliaf......:ttle

Cionfe!lll:tI!1lCe Halll, ''lhekk!ini' W:l1lictrJ can!


$88.1

the board mom and

"panthclf·,·,·,U:'Iel ba.nquet s,pa.oo allld poolslda I~B.WI'IIS

a~l!JrvediclliJeraIlJeSI. amphi1iheatre with a daHv cui ..

20

&0

'1,200 pS~llle.

Copyrighted material

)
The Ipricingl strategyfonowQ(lllls, diftel'Qllt~or the I. ,eal maJliketand outsIde Call:cut.. Tho inatllJre' of Ihl:s s9N,ioe is !llIiIat tile IDLl1slnes:s OOCII!iS [In S,PU[IiilS, i.e!. demalildvall'latiolils !are many., Hence It l)eoomes 'dlf,· Ocult to ma.na,ge the !wQrk.foll'OO,ImakinQIU!lSI IprnCin!l of theseNioe a'liitlile more diffiolll~t As Ksde.w is targ!eMoolo, the p:r:a:mium segm€ln~: of thecliLlstom· em, lI'm IP:rt:ci!IiIQ al!llos~t doulJ!letlilat:of liS tho ma[rko,t pflles. It was designed to :satisty the ego and starus $~mooll oflhall: :segment: ·of [users. The il'oglC bel1irrll~ sl.Idh a pricing is purely Ibscauseths,y cannat eomIpete wah the j),IiaAO name, of Raj, Ort9''01file ,com,pet· ilng hotels inl~e ctt}' and pal1:cf a leading'chaJn 01' lhlta~s!.!ilJlrd hence' ~t:lrles lo I.IIselhu! peweptic:m ~hal ~liIa lcostl'ier ~Ilel pl!aCE!' m.oreprestigioUJSi H: ts, 18e~Ihe slld'e,s, COlils~d!ertng !the!!lacttliiatCa~i:I::~~: ad a small h IDIJI~'igniifloam.t propol1l10tlll !o.f'the population Irlla VEIII)' S

lished [I'oom 'IBriH, !aJndth8!1'WEUS, rreeta hike l!Jpthe charig9S~Q sen 'lherooms· al a 'competitivel rate t:o theilr particular [mmlkiet 'Thsi)" were ,called! the mos •. p'rEliferreCi agents. a.sulIEI,y usuany had l1e· lowers. lra~esf,or (he reSQrt Sit IIlat. parUcl.Il,ar',CilyllooatJo.n. TIl.e o:M'ilertravelllsgel'llts: who, 'oooked U1811ilot.el tor

Ball1gal~C!lre Cheli'li'IlIai s.nd Mumbai. lhese agents .• wereprovidmll withl a 'base raNe·muoh bellow Ihu!pubI

tllel,r'tlients were paid a 'tommlsstcm 'on !OJ pe~nt~ ago! of the Ibu,slne.ssi 'they brought i:Ii!" 'lherew(t:I'u
1P:lansllCII'expal1lllhe ne'twal'k of Ule:ir most prefel!il'sd a~ -~,- b-- h·:ri~c- more' !~-;'Qle_~S!I1'_!'llI'eeo~_er cl_.es-~i'tl~·e __Q8111'S ~''I. _1 JiliQl ~ce°c- IJ-- -n·r '-" ~1,. ------th-·-Tniva:ndrllJm. CochLnand OD mb:al'QJ'ie. In !addition" Ka.ds.\tu iIiS'SOrts .'ads· a OOll'llsc[OtilS deCIaroll !~O'par· ticlpatel [n alltraclef!afm, boUl alomestic ,and [Inl:erna.oCil181;

Ihfgh !income segmGrttwho had .hig~1 aspimtionvaJ·


lues. thlsstralegy

Ipmcluct ,offering ~was su,perfor '[0 'the ons' oHiered Iby

<combined with tfile !Iac,t 'U~alt:the

Rlaj, pr,j)viecl Kacla!iIU da dlslJlnc',tvalU:9 propost· tiionta mlsnlicbe'segmemt of 'ClJsmmers. For the loc.a~[ma.flkel, tlilay! aHempt&l!iIitoma'ln.tain :1 sollt ,of [liJlfiIiI'orrnityand plicB,tlileirsBN,ice oJlsliing ,BI !almDst twtee 'that: oflhe ili\eSJ,estc:o.mpeutoli'$,. For lnstarrws, a bWlle,1 wI-doh W!BS pr,l'oedl at IA.st25 p:I.llIs tax ,Ii!: RaJ hotel cost IR·s 22.5 !pfus Is:!( alt. Kads.I;'lU..for .B.tters of lI'oompriClin.g also; tt adopted Ule! h'igl1er price ltil:r!8cke't. 'The' fII;sl. reslUlI: was lhiat.tlile hoie'll':s average room nl!lVan1ll9. csll'culla.ted as totall mom revenUE! IdMd'ed t),y number IIJ~: rooms sold, 'WB.Ssig" nmoant~, ~liIigh,e:rthan Rail. even a.fte·r amlowing for Iim,de ,discounts. Uore.over, KaCliavu :saW' ltsEl~f as a liIDJll.uy If9sort~ and henoe adjusted, Us:plic[ng Wi~ 'varlolUs! pre m iUlm[II'eS'Orts!mil!():od1linand Kumsraikum
l

l~ecU!l 8 riu;l neglot~atelr!ale,sw~lLh Ulam. This wOlld also giiveths,m ani oPPDI1U!ni1yID. buikl up Ulelr own dataiba,se of iRl,pol'itarnl cWlslomers .aJlld sgents arollJndlfu~, world along wiillhUte obvious. IPLllllICiily and ,BwalfBI1Utss thai woull:d be generated! !abolJlth.e hoteL A :sp-eclal pwovlSiOCii was~made 1111Ule IIl1lClQ'"' lated !almocatiol1 f'orm'ail'k,etinj;l! alldl sales 'to, accQunt Ilor suol1l1 ,experndi1ure ..
1

where theycautd meet wllo~esaJe bu,&l'Sdi·

'On9 101 tho most important aspects: ill ,eI sBNlce ergan i$8ilion,! and eS,peoieUiY Ollel in, Ii labour iintellsiWe'
orga,lllsa'ti:orn such !asin:ote[s· !are to acqtllr>'e glood • 1'111131 Kada,vlJI Ire'sorts; had iitlS shalla· ot' lproblems iii'll acquiring trailled im~I'OWer. even !hal
1111 BnpOWel'

:atmost inoQ.ns.eQu:anlla~~aa,t mat KadavlIJ [s. a :strangel rulmel lor 'peO:l!lIle outside' :Ker:ala. oombinedl

as competing mson: deslin:al1ons In Keralla.1l1e ,cle~


taHedl'compadsolil In Exhi,bft 112, 01 price ud roomtariiff;s !aria ,given

'Wi!lhl the fact IhEliI Koz;hlrkode seem!s dlstaJilil: ,and Ire· mote 'Was B. diHicul:ty lin hiring talsl1t:frorn ol.lts~de IhB' :state..In:drani~IBeJile~eewas ,ea.1liEiIr' wi11ii1 a Ilarge 'Ila·· !~ion~Wide h,otellchahif!!, Where, ,as 'Dl1Iel the ·youliI!gest (I·f

]
Il)ls'~rjbl!lltfon In a se'rv,ioEi ,envinmmenl.essenUally nJfers, toth.e nel.wolicdsaf,es agsliltsthat :seU Ihe proallU::,t:ac~roS$ U'lIeI1oolJlllby. Kaeavu, .sorts iinmany later lli"sal.lsadlU1ehtltlHty of relying on an !8xdusN'·e re!ami.OMn~p alild~lilus spliEI·ad aOf,osstlil& country out: by hlrill'llg up to 11:2 ,agents In 1hlres, cirties-

n~sli!:el!!l'foll' Iillmselif !s reiPtlI.tBUon for !turnlng[ aroundi ! severallos:s makln.gl hotel unltsi [1:llio monaysp1nlltngl ,opar!sUOriis i'nthecliHiclLIU 'erwilionm.el1lt of a. public :sectOIl' ,snt.e rpnsEI. Tille 1il9WQSSiQnmen.tat Kadavul !'N.as a cl1la'llsrng,B !fer Il9anerjee to' grow an In!ciepelild~ ,em.tl, owned hot,eI1,oa I"e,pllltableandilprofitable erl

'Genel'8JlI Manage'liS of Ole· Icom,panY'i ,Ill' Ihad esmb·

!galllsaIlOIiil.!

raUed'olil !asole d~stliibuwr In 1[5l1n9al'oIl'8. then but

The hote'lllp:r'B:sentty JhadatJout 11'O'smp1Dyess 01 !whlch ten were lillthel management cadre. IMos1 @I ~eml W,Bre residents 01 nea!m,y localities and 'wellel Ilrtoviidedon,Uile1ob 'lra~nlng '1,0 ii rrlprove their skUls

Copyrighted material

9f1dto ,!:Ievelol!> a customer il:iendly 9!llI:ftllJae'."(,et. ,due ~Ciltl1le' Ilack o~ s!ny formal trsln.lngllprogram'me" eembilled with liIiJefacl that Imost empllGyees 'wer:e wlth

( toca~El1vboDmeDt

III Ie or nopriol' wortke:xpe:liienoo;led to dHf:iouUlesiln


s'9mie;9 d'elilJsry at all 'limes" Moreover" lOne ,oftlile key dHfioulties in .managing tilulnS!l1Il'iesouroe was In re,tailnlmg s,tef'. 'WitliliaHrii1ioil r,a~es \)!e~ high", beIDomes even lmorle dilfilc,uU tin Imai.lltainlllrnQI the ,sellVioo quality shlJi1dards,. 1900aluse ,of the seasonal Illa~1Irei o~ UiH~J blilsinessa, sm:aJIIIPlropOl1ion althe slaftili1l(illl1equlire" e'l'Isurlng efficient

m.ents are handJec:Il b,)!''corUractua!1 a:greamenls wilh l~mporalYslarf.

]
UnlIke m.ost '~radH~o",al hotel stirut~UrEls w:hicn '(ollc,w a malen IDo)( ,c!'esiglill wlUJIi:ebiJl most: servioo ouUe,~s and moms a10WiiUlln iii 3~OI metili9F'ac:l'lus olUls elevator or :pJ'fOdue~iol"l area.,K:adav,u l'Ei'sol1S adolP~ed a spre\ad~ol.n layout:" wherein tlleliS,was a senles, ,0,' cottage,s allOIlQI w~tIiJ a ,oom!li[lnation of rooms, on the mainl b~Qck, he >ool1e9 slln.Op'was IlilIuih T alway from liIh,e'main, bunding ,as were :tI,e co:nven'Ucm haJl1 11Uild ~he Co:nf!8I'1ence J'OO'IlHS. This, design pro .. vfded its ()W!fillp:mblem,sintsrrns 'of IProvf,dingl ,quality sElrvioewithln aooepta,b's' tiime, Ilimll:S"The ,service sts:tf had to IN,alle' 591,1'9r,BI rniilluit:es 'from tllile' main kl;lchen, LIIpa.f1lghl: olstaijrs, anCiI ne,gotiate :smal!1 tlllll~ ocbl:o ,provid'e room service ome:rs to, 'g~ests en the ootta,gas. 'ra pn~rve'l1tth,e Ilnevaa:ll:te customer oom~!allilts, 'Ihal would ,alfise due to tihe de'I:a~s ~rnaJt may a~ise from :S'LlI:ctil 1.011191 ,8 process, Bane~iee,Imadel effolits,lo' discoura~!9 QUBSts fremordertng f,rom (heir
j

rooms and Ins1eadi 00m! ttlem~o, V!isit the restsu~


The room se:l\ljc~ Imenus wST,smleliberatety madE! .~imlletl so tnai' :guesl:S 'wIlo pl19fe:r mems dining choices, would come ,down '~CIl' t~el restaJumnts ..1ha IlltJ,¥llsll1lbIllHs'i spreadsl as well ,BlSH1IS' cOmlptirnenlaryevel1lijng lea Y$9m p:lrovidedl to 'Iiempt ~he'lmsi.de:rU 91.18$'1$ to, visit resJtauran.ts. mel t:ealoof·· (iee, Imakell"s· ,Bind mlnll~bars WOWI prtoV:ided lin thel rooms 'so thaillhe most frequent bevEilfag:a orders cOLJ'lid bel ,awrded ,and the aoco.m,panll,ing pm,ss1JI1fet Olil the :s.el'Vice :s.)ls~emcOUilidbe' relIeved. 1',l1ekitchenette.s, were, prOllJ1idadieven [In IItl.B' tcotta.gas ..
S11l0,P8:,

rants and Icoffee

'fam~ly'y,acaliolill'CHlOwCI.ThEl'lpaI10ClI'bell:Ween August 11 Ih a:li1.aSeplembe.r 3O~w,as ,classIfliedl,3s, mfa-sea'1 ·sol:illwhere diHerelnJial1 prioing was ajlJlplied. IOlll!t of

OIllEl' afme IpillUluri,ar cmJalle:nges i~Q reson Illotelis to k;eepl:lle, guest occupied andl busy as m.Qsl'Qf' tlitem sperncll their lime' withinlUte prewl'ises of lhs' I~lote~j,as op,poS!ed to ,city' hatels; where, gue,sts:le,ave III'I~h.e m.o:m<ln9 for bLllsiness (;1,1:' leisl!Jr'etl"aivel and come ba.ckto' the hotel b,y !ev,el1ingl,This r,eqtUirres~he, Olel h to dream up aotivjiUss to. Ikee,p the 'Quests h,app,y ias a bored guest is one Will)' w,olil:ld bel all1 un'ha,PPY''Ollie and one Wiho would pliobab~y' d~;idel notlo''I/,lsiilthe !mots.1lagail1ll• HellOSI in u al1empll to !GI1UUGIB lmemo~ liable stay, the hotel 'o:rganlS'ss v:artous games ,sndi ac.tiY~tI9s-suCtiJ as, tioal II1CUllglilil,me ,(t'ay al1ld culima'il activities in tJhel evel'lings slLIch ;as class,ical dance, al1ld malrlJaJl,a:rts shows. IMo:l'eo,vsr,til1BY p.liovtdsl'f.8,'" ci!:lt~es: .Uk,oa Ipalik for kids as w,ell as ·llIlal'lsf:or Beq!llillngvide<N1roaae, games. A homethealli'El, aJiulla disco an. demand p'lfCI¥ides ,entel1_a1n'ment.A, .lil:lrary is also pooposedto be IbuUt in orc:fer to, relievel bore~ dem, iliihs' mallilu Imamag;ement was serlous~~ leu:lked in~o lim or.r te p:r,uviide 'the' ,QiUtJhIelilUe ,cuiisinB. An lin"' temctltv,e klitcheJilI 'wh.ere< ,glUlStsaiSO could tJi)' 1helr hand iinl,cooking~helr lO,wn food wa.s ,aJS>CilIP~a!f1ned. BBl'llel~eel ~lhollgiht: over '1!IIl.BIviabmty of ~he il:!lusi .. ' ness s~.rajt.egvthey has beelil loHowinel. l:he! Ihotell hac::ll,a~lJImo\!!,ar o~ IRs 1",8 crorlBs, ~he p:ravii:Dus year alil~1was, Q)(pecletll to. Il'inak.EI' mOlfethan Rs,a.S ciI'io:res dIJu11i1Q ttil.e curlr,ent y1ear, It had Ipr'oJe.ct:ecl to eam about As ,e;..;,7 croresili1 rev,s!f1l.1eswili'li:ll'l the fiMext Rs 2~, 'years. ,Oil'll ,an InijliaJI in:veslmento~20 cmres, the hotel was irunningl upa ~1)()EU~cost' of As,13-14, lakhs a month!. Sixty peroanlt 01 the, gross revenues were, g:ernslra.tedl from the, rooms dwisioli1 iarndllh.B' remainIng famy f'romlhe food and bevteliage (F,aB) (Ii. 1iisfDn ...l'n~hB IFIB di\,\'lis~Q.n.86 IPS !oont of r,svenues: I' came ~romfoOO satesl ,ailild 1'5 pelf ICfHl,t fRUB UlallbaJi~ lilils' IIaditiicnallipeak tDUl'ist seasontJila.t sfaltsfrom tile bs'glnlillngl 'ot 'Octobelr '1:111 nd IMtafic'l11 w,as eK~ e tendedi tiill'sn.d MaY' ill ordell" "0 Bccommodate the

thel:ol;al re,\!',enu.ain a 'Wasik. 10 per 'cenl of 'tile, sales weN' ,generated 'from the weekend extendJi ngl~rtom f,llid'ay' II!I Sund1ay l~m[J'lJle' r,e9t.80 per cent: from 'Ihe 1'i981: ~he 'week. iManagingt!he v:adabllity 01 d:emandl >cd tliJrtolJlglm~he week as wel~I,a5. across,ttiile' ye.ar was

oliile 'of ~he' clilallelilg,es, to maximisllilg 'opera!t]Ol1alll

Copyrighted

material

effiCiency ,andprofilaJbility. Various packages (see !sxhi.bit) were floated kI e,venou1 the demand and k:eeptlile ho~el 'butSy aJI the~lma. ea,l11ie:~eefaced some' peclJlmar prob:I'ems in h~s, s!tll!1~: ,a~Kadavu. ()liIce when one 01 the boalililgtour;s, too,kp~aee atl1lght" it: ,aooi:dentalJy '~(J:fe ,~ar1 the Ush·, InOI nets Ipfacvd If),ths focal fishennen intl1e'srea.

and thai resul was, a,mob 01 peopi:e demanding ex~ oliDilanl arnnolLlnts of oompe'nsatlonl i'omUle' hotell.

The ulildedy:l,ng dtsllks' ()~'Ihe l'ocaI [1l8O,pl~e 'l,oUile, hotel could beuaced back tQ ttJe time wl1en~'he, holell was, be~l1g buil~ and tile' locall po,pulatiion !expected suctJJa farge [proJ,ect~o provide pelil11an.&nl ,emp:loyInrnent 101 ImB!ny of Ins' leesl residents:. Unlort!l.lnBllely. when that didn"t ma'teFilaJIse, title relations soured to the extent'tha't~trle hotel had to be 's:lidfsmefr Gamfl,d SlfIId call1l~i:ous :In its,ap,ProaC:I1I, wliJi~11:me-alill tfhat Ini!QIlt

'time, cruises were,s~oppea!. SOl ware loud par1iesat: night and gener,alstandairds of enV:iro:nmentall re·, s:po:nslbiliity were maintaIned. Another UnIl.lSui[i, pro:blem 'w,asU1e inillow la~'Il8fg€!! amounts: of Inonpayingl 'visitors' t.otl1lel holel. TI1,9 Ilocal mslaenrls ,of CaJlicu~took the Ihotel~o be' a sort of tourist ,a1trac~ tiOlm' andl came inl IClroves just: to :spel1Ci11 time' In its SOElI'I:lcBMI\lilrons. Some leven referred to it as a 'lPa~k,' ana brought 'Ihell' lJI~cnicfood 8l'ong'l Ul1tlmalely'" 'he hDZe11 ad '10 begin cl1larglillg a cover !ch'arge lof As h 110()'~Imd:eemal:lle, a,g8J:nst an,), purchases a,I:Ille' res .. lauranl and bar) tQ 8'JI ~1100lrJjll1g Y~nsitors, II1IQI1c1eli '1.0 dissuadel th,e .casuall' vlslloliS who endeoUIJI befl1gl a, dis:lul'bance to 'genuine' guests. W'aJ~lngIlnt;o,hls ,ofliiOSIlBanef<jeB ImlJllII'ea O"IU 'Iilfle eH'Bctiveness, olt'l1elr cUIFfi9nl mal'keUl1Ig strategy amJI ~t$effect: on liln.e,future p:raspecm of 'he holel.

QUE:STIO'NS
1. Was ,8 pl'errmiUllll'll1 Ipr:i:cad
desti Ilano!n?

flBSOIt

actuany :slIIiSt:alnab:lel 1111 .lpl'ace whidhwa:s not: yet a a

pilf8f'EI:l'n:tol'tourist

,----------

l'cntiff,s 'for lK.coo,vu and Its Nearest' CO.mpefifors


~-

--

~~.~~~-

.....

Sbmdaro Foliag;a 'view ResldellCY IFOIl3Qli! view IExecutive :Suite Peel view

M'3 2900 40001

1)aubl£ RtJom -.... ~

,USD 165,
'76

15

331]0

90

H;
'15

Complimentary /to. pi

II,nClluCles:Welcome Drink, AocommodaUon, Bunet Breakfast, use, of SV-i"imm~ngPIDOI, Gymnasium, Ubr'ary., Tab~e tennls and Activity eenter, AU CUl!1rent taxes,. ibr:at' COlt

Nis/it5
Standard

Bal~ftJ" &trp

, p.[,~(),~
12 years
1.200.00
ablllJl

Sin,gl,e

DIlf!Jb,lu'· Rocnn,· ~ Room·


Rs 4150.00

:years
Boo.OO

5-12

'.
-r-

~.

Room

Welcome drink. Meal creCli! of Rs 14010,100 on doub~Boccupancyl stay. One lil1:81f-£llsy sighmeeing. One comp!emen'tary ,Bly,urved"c massage par parson once during the sta.y., arin:k ~hoLilse br,and}1

Iperso.rnlday Illtl1le, bar. fresh fn.lit basket 1&. cooldes once dullingl ~he

star and two batliles· ,of :5O,fI drinks; ,anellminerail wate.F'i' 15,% discoullt .
on F&a,. 'teleeOJIlilI Sfldllaundry. lli)ay trIp 10'Wayana.dl• sandbanks can ItJso:rganlsad al:an extra ctllaille. Aol!lommodatkm"a;ytlINeda mJea1:s (Vege1a~atl.lbl'i8akfast. Ilunch ,I dimi1E!lr) tJrealment charges ,and
taxes"

A,ytlrveda. '6,
Package

Rs 26260.00 Rs,38601).00'
1

(B)I.rI18, 'lcnKI,daw [Resorts


'1IrfHI'rom

C'estl:v.'ll IboRI.,.,:

'OClt:obell' 1,2;003 to, MI8fCtl 31,2004

.. FruU basket In room.


., Morning teatooleo
l,

OooLl,pancy IElF".: Rs; S5JOO.;SUperiiOIi .A,e' IRoam:-Twinl Oocupancy AlP,; Rs 51260;. M'ataJba,r S'ulteiMap,pUla Malabar SUil:e/M'QIPpi!la IP'u.r,a S'IJiteJCott:age~iwinl
· _. I -:-c .~y
i.

,Superh:H Ae Floolln---Twit",
EIP~Fl.! 4000:

tea/oolee ,and ,dinner.

b.rea:kf,ast" llunch, 9v£lnl1ng

Pilllra.:S'I!J,I,telCotmge-Twifll'Ocou,pan,cy

OooLllpa_ncy' AP: As ,5810. 'T.:SriH ', m 11- A-_pr'l_ - -~It... e",:-_-;-,-I~ .. I.' -'e: -:- ... __.I! """",p~m_r M- OD_III IMa.gllc) S'Ulltl!ellior Al:;, IRoom- TwIn Occupancy EP;

R.s2450'~:Sl!Ipel1iarAC Roo~rwi:n Ocoupan.cyP:: ~


IAs,40aO;: MlaII'abar ,Suile/M,apipiillla IPu~a Suite/Cot· tage.....;rwiillTj Occli.lp.ancy ep': Rs2SDO; MiaJabar $'uUelMapplllla IPIJI'a Su.itelOQttag ........ Tw~n IOCCU~

• Half ,aJ1I1 hour ,boat !orulse ~1iI1Riiv8r C:haUyalli' all sluul'ng basls". ,cultural !Bv,eni:ng l(f'Olk Slit: of Malabar en January 11,2004) .. SoIJ'IIelllml' I(KacJaVl!ts Gift) .. Hs 300 giHv,ol.lcher f,or' a.yulI'Yedic massage. _, All ap,pllca~ble 'taxes, ",P.Be:kage-8 Ho t:o ,AI81" O:m:ers, 'twl' unbeatable'

paney ,AlP:: IRs!44130. 11",Ch,ectkin-t2: noon :& 'Check Out:-U bre.akfas:t. lunch" everrrnn.gte'a,

AIM
l

packages 11..ull'limitecJhungama andl2. .family IUJI from 'Oclober 1, 2:D03,to May a~,2004 "UIi1~I'mUed HUln,ga.r:na"' AS da.ys 2: Illights package' I,or one ooupla: Superio.r Room As 1,6666i: Suite' O~ 'VQ,lag,e: FiJs11177. WelC:D'me dril'llk,frltJit: !platter & 'welloome caike' ~n
l

:2. .A!II ratas are appll:cable Jor one nlig'hl :3\. A!P relies incil:ude ,aceo.MlilllodSilion; bed I.ea, taxes;

dllnner Iind

,ohs·r:g:es 'fOir eX1ra adult: sharing 'tile samel "oom:

room •. ,SlIIpp:lemafli( for ohlldl'BI1I belQw110 ylsars:: FIls ·1800witneut any extraDe~l SlllIpplementBry

4. llii"ree aoco:mlmooatlon

"'0:1'2 chilidren bellow'

,Ice ,8", F'or Gil minimuM 10 rooms can be, ,given '@ RsJI700!:' al~ line[us]Y,e. The IN'ewy·ear 2004 Spsoiailpa.ckage: 2: nights 3
,days ·Sl.!Ipe:rjor Room: IRs 13900 llIS11l 305 Siuites & Oottages: As, 14'900 USD ,325 • P·actage includes, pick up and drop hom ~er().k'e:' rRiBllway staUoliilfCal cu,I all!pon:.
1

10y,fS. (w1tbout ,eIJdra. mattress). IFood ,clfNtuges Rs ·41'1) ,51. Exlm 'ollll<iibel:ow' 1Oyrs: Pis $1111 01 an(jlaJbove~O yrs; iR:s111'11 !l1' IBI, Pao1<a;ge starts wilh ~liIno1:l and ends, wirth brBa~as~ 7'. SeM~e eha~rg&Se:lC:tra'@'·OO% on fioom serv~
I

Rs 3919. l'nclusiVe ofeol'a bed and all tmB'ais.No (!oom S8.11'vJeeLsooverled!witlhln lhescheme. Bar StHVlioes: t.O be ,av,ailedfmm ~11am to 1111pm.iBoatimlg an.a AyllINeda. SG!ssio.llll!asis,30 minute,s piU :ssulolii. U'fiIllmUedi Ui$e, 01 resonts reorea!tfcma1 fucillfilJes, like tabts,tennlis,. caroms, beske.banl,. fisthJng!1liIeaHh club ,and s:wlmI11Jn.gpool. EXlellsjon of' the paokage en ,pm, rata basis will ,OSI ,ool'llsider,sd a:e,pe:ndln!91 ulx:Ulll the moml availability position. Above, rales n.otapplicable: lor the Ipe'!iiCild(lw:m. :21 10,3,1 Dsoemoor,! 21J1OS. "Familll, F'tInlt! A. 3,dayS! 2. ,Ilrgh.t: Ipaclca.gefor o:na ICD!uple: Superior Rm)m As '9000; Suite Q,r 'CDttage ~'s1i0900'. 'Welcome, drill'lk. 1& ·fruit Iplattel' 111'1 room. Compli... ma:lililary' boat cruise for 30 minutes ,(sUlbjeetto weal!llle:r oolildmOnS;). Rates,includes aecO'mm;ooa~ tiOI'Tl,. bQd tea. :lnQalldast. luneh. evenlngtea Binddi n~,

• WelooliiJi!lB drink 011'1 a"r\i'llBlI.

nsr. No

,eX~l'a ,chariges

·anditruces. Packag.e :&tal'ts

Copyrighted material

willlll..Inch al1lo1 endii 'wltll tn:aaldast IFrs91,aooommodation for two chUdrenbelow 1.0 'year:s. Mea:! :sup" plemantfor dllilarsn below 11)'year&---'Rs '900' Wilih .. 'ow an)' ,8xU:a becI.Sup'pl'&melil~ary clila.rge, 'fOf !9IXn,
1

freel ,a.Qoom.m.odartion '01 ~.W!l,ohifdren without e~ra maHressj; IHalfl1ou!i boat oooopancy,.,
1

balo,w 1Gytrs
CJiUiSB' [!11!

Chaliy,IFjAn a P,plloab'le ta~eSi anlit R:ooml foF' doubl'e


RO'Jalt HOiteWT:all'ln

rivsr

,adl!l'll: :sha:ril1lg the' same [1'OO~s:1 99~1 Inollusive 01 B\dlia, bed am all meats. 'Vouo'lilers W,Drtl1l Rs 300' Ipe:r oouple ~o be' Illedeemabre a~: .he' cOIiJ:iI;pnm.ellitSJJ' use ,olil'ssorrs rooreational facinuss IUc,o! abl'e 'tennis, ,caroms" tennis ootll1. bas~etba1l! ~ ~ishll1lg. hea:lthl Iclub :and swimming poot, I~e:lil!;jornl of 'the package 011 PRI rata, tbasis, 'will be eonsiciar:edi c:lepandlng upollme lroom aJ.vallab.i1lty pos1t,lo:n, Abave lrates rilola:,ppUcalble for Ihe periodl fnl:m 21:,11 ~o 31tQ Decel1'l:belf" 2003. 2 lll:lghl., :3 Day. Package: Super,!or ,AC IRoem~ iRs 1000,; Malabar S'lliitelM8!,l)pma Pu ra: Rs 8700. a lNlghts, '" IDa,., Paokage:Superior.AC IRoem:
:Rs '9990'~:Mplaba1rS'l!Jite/Ma:ppilla. PLlNra: IRs;111501). We!loome' illiink 0111,amvali: AU ImeaJs· st:a:rtingw~th m,om.ing;tea, breakfast. lunch" evenll1g:~ea., dlnnB'r,: A:yu'Nl9dla centre
tOIi

R.OOM TYPE
S:tsm.cliard f,ortul1E!' Club SllNGtlE (:Rs~ 112()O
1IS€lO

massages

lCilr treatment.s.

,S'li!Jites extra. iBed:

OOUBI~e'(Fls:) 1400, 170.0' 2.ctIOO,

200

• 1.5,% lu'xul)' 'tax is applicab'I'e ,onl (he IfiOOliIIll:all'IIIf", • IOthsr fues (if BIilJ) :shalilllJel's!dr,B. • ChildliB'11 below 12 can be acoommoda'l:ed wi.llhoul an eXllia bed iJillthesa:me 110Clm frea!)1 chsr'lge' .. • R:s!tes are Il'IIclust'ls! 01 brealkfttsl. • 'CliiJeck out time' is 12~OO'N:oonl.

OompetH,OfS llnlhe' Month ot Oar 03 .'-----_;;_---------------Oocupan.C)" (%') Aoom Salle F&8,Sale TurmJY,er 00.,411 ,8:2:.40 1314.
,25,.9,9

VaOOUsp,elfomance

Penameters ,of lKadcrvu vls",O·,VIS omer


_,

-- -_ .._---5:0 1901,
:8.93

,ARR

198a,
25.83

22.'ilI7

52

:21.03
49'.75

24~OS

'14.34

changed In (J,rde,. .to pro,fecloonfidanliaJllr

The ,authors w/:s'hro thalk ,and ,acknowledge Ills' coopemtion extended ,by the ,genera' mana,gerof Kada~ A'e,sol'fs lo.r ,tim vallJabl6 in.pu,tslie has provtded In rhs'pmparati.oJJ' 01' ,fl'l'/'s cass. Some ,names' have been

"lif th'e in(ormaiUOfJ' p1fJ~ided.

11" Subrata 'N. 'Ol1aikmv.slty and Naazneelill Kal!Tir:Ja:n,!!P:ast: fooot ,fio'rbes Globa", Octobe.r 8, '1'998.
2., P'r:adeep lB. ID,eshpalil,de'i,'ndt'a~ Inc: and Six Sigma. 3. suooassfu'lil1ilal1sgers.cQm - VOII 85; 'Oot. 15--3,'1,. 2003. 4" lha Dabba.wallas 01 Mumbal - ·WW!rN.~ravel~wlise,.eom

Copyrighted material

l,ealflning 'Objective,s In this, chapter, w,ew:m .). tntreduce the seven P's cfservtces ma:rketiilng

,. discuss hen""to launch a new' servlce product


)0

diescribe: service product bundliin'g Hfe cylcl1e


1

).. dlefiine: the servtcs


)0

eXIP~aii!ns'e'INiilOe des,jlg:n, anld the' 'CDI:I1C e'ptof fronlt and

back offlce funetlons

,. dlscuss brandlnqef

serviice offe:riing,$
quaillity model of IMode:1

»
)0,

,Chi!S,criibe' the servlce Be'rlry andl Z:eith,tllmil

Para:SlJramlan,
"

eXIP~aiilllthe 5

(i,8IPS

,. iintr,odulce:th'e' terms custnmtsanon ,and standardlsatlon


)0.

debate se:rviicE!:dlefec,t:s".f,ailures enid recovf!:ry" lind discuss service 'guarantees

Copyrighted material

A1~readeifs who, han gone duuugh,a. basicmMkeringoour,s~ wouM be famUiM wid} d~.e,4 "\'i' 'ofm3lrketing., These 3i:[)~P"mdiU.Cti' prw.cinl,'place and prtl111otion, based on whidh die majority ofp,roducf: mariotllers OOlml,ce:p'cuaU:re aAd, im,piemen1t '~heir markedng p~all$. These pet'tahruf!()deci:s1o:t:ru:S fte,gardtng ,desIgn ,or [,oo,es~g~fpr'oducts 0.1' ~~h:ie:i (as P<1lJtof~he first 'P~=p,.tQd.ua). loosdng i~UHj'l other infli!:!!ences Of!! pddlg o '
sEr,a~cgy hhe: ,secoIA.di " ,o,{IP'lI'idn.g)~msuibultio:1iI cth:anfu~~maJni31g~meo~.and s!!Jpp~y dhailll :milfla,Fm~m (:the third.P ,of place). md!.v:~udo't!!sp'm.mot~(l<Jl~fela~cd~fislles in. ~he diffc;f1ent Itypes D.f mcdi<ll.diJ;at marlIJCl!Cf~ miry use.•:rattgifig:fm,mpetrofi3i~/d~recc ~emIlig:(jo,ad.ven;is~f:I:1{dl~ oo,unh r of prom@ot:ion), Servfficem;u-bte'fS halve fQl' aJ. fai:d.y long: dme !been memion~tiIi:g lliher:l.:eedfm ad!dwt~olI:i;alP·.SliO~. j~I!O' a.tt:Oll!Ul.t Ifh.esped_aJlfil;3.£!U!l:il!' of ,s;ervi.«:S mali:keting~Thisde:mand.hasil.ed..l1lO~he.emergen.celofv.ali~ol!1S ~~eliDlac:ive P's. J?!resendy rhemost wIdely ilI.ccep~ednHlfkedng structure oonfains 7 P's (d:l~!i):ghSiomJe
authors (~lke Lo,vdock) mcntiohs8

p's to Id:e$ct.~bem:a~~edngpla_Q:S ,of.s'e'tv.~oe il))m,afi~esl. ~fiaddidofiCt)

dlC four b~ic P'smenriened eadier~


I. P'rocesli;,

P'eople~ and 3.. Pih.ysicaJl. ,evM(!!Ilce' ate· the: three specia~ P'.s fOli"seFVkes. The reasOIA rOlF their adJd~do'.n. nd.aooeptu:Ct is fairly o:bvlous. Servlces a
2;"

all';

dJtUve.r,ed, y.peop~e in mmy b

as" ..Even.wh}e~ tedhno[Q,gy is used" peolp~.t,dOo(OrMa. veqr ~m.p!l)li'tanlrpart ·ot,fhe 'senior: expe!l'ie.ncc" tood. ~ed\uilo~ogy us>M. 0.n~yas aeenabler j:s fur :fa:s:r~rdmrnrecoV',ery O.1i"!entry. Bt'.S;id.es, sin!cedilem: is alee o.f inmrracti,o!ll inv·ol\l'~di:nrhe ~ervi(lep'm~$S" I(be~rru peo'P~e:in Ithe sef'o'ia: company ali1l.dl lpeop~e· as .in. ,cmtomers) ~t oo~M. crea£emo,reemod.o.naluphea::vru:s iU'han in (Um:U~fjebs, b:dngjng hllJ.m:llfDJ ~l'!;!lour(!e(Hit) ~$:s!Jes; tlhe rore. The ~tui:til!)n ~ev~!J:sl!l S'OImC service .~:mdllUlnies,Uke IT ,serv~Ce;!i, ftr€·r:eponea u) be 0f m I IOOJl[lp~3!tivdyhigh levds;. The'rc;:fof!e.l!ihe "~p'le"~ssues~nserv.~Qesl:llafkedlili,g 3J~ewouhy ofa S€'P3!f>3,IlC
:diSClHS~O'I1I,

:S.imnarl.y.du:::'pfOass:i~san hn,o:nafit wayl!o 1!ookart arny service s~rua!(iolil. T"lhisapplies W {be m:OS[ ,oirdi:nary (l!fgervloe tmAsacdons (Hke gen~ngrolllF bod.te-a. In. tlhemornhl:g aJ.t 3.hor,el.o.r ,even .31e:-IiiIP C3U ~ ala hOl]d). Theway~t is :done can S1Gmetimesderermlnc[hecustomer satisfacdoRwldl (he cndlfle servia
,expedenQe~and it is. imp{!!ftU1JIl:rovi.!!Wth.e pf1(!lC!e!iS~n erms of o:!i.vimJiaJ~. e map' wi~h vari.o~:s a:crivir,i.es. or 8t;tps ill-s;r-ed. lexp~itcidy~ preft!tlMy '0m a Qustome['sviewPQ~.nt, Thevisual~ ~:a:p exercise ,m~ ~so'a.dd [01 Irhe cusreraer miito:'nmdon of t{comp.my, It wouM. ,a~:5io !!!'IC: mo:l!jorOp'p(I,rtlJ!nides ~:r .redesigning me·oomp:aAY :gi' IProce.s:ses~,h1!oth~-.r wo~, bm.sine-lispr'ocess ~e.nginee[ing)'for a.cMe1,'ing greater satisfa.cdolO ~evds. ( T,he ,(,'IltierP (ilf '~physical ev,~d:ena" is ,li1eG~itatred by ,tbe fact. that services artie l:a.rg;e~y im.cllIlIl.GWMe in if!!~tlU'C. l'b~refo(re. ~he Qn.~b~e dements ha:.ve~o be sepanl!telr :;lQ;QiIJ!J1IVed~o:r", Som!et~mes, ~ihc:se sencl)o d!~fLren~i.u:Cl: WtwG~n ~~lVioCl: provide·rs" ~ike the log.os or IUni£orms or deootr {Iwke dl!e hig fe~I.ow atdtes of aI. McDonald's :r~tai!irnfii). Semerimes, Ukeb'oocimr,es ora. irrn.vel ,df!:Stinuj,~}fI., Ihey Ir:aJIJIg~bm~ed'D!(,:' serv~.~ ollJeringj, ,providiln.,g ~f!!fQIFmaciion ~~Q ~hecwtog~c:r w Idocide !(rInwhed!,eit~le wan.ts W use ~.serv~ce' :(:abo~idaf at [he decSc~:na.t~o,ll~:n case], Tber,efo:r,e, there isa ~or of m.er.it iu:yolwd in dwscu'ss~11I1; se,arnl1ely ~bell~ [illis three addidoln:a!P's illth.eoon(.tlU: 'of servloe~m3J:rk.e~:in,g. The ,eigh.'thP used by some autho'IS on. seJ'l!l'ioe5~:arket~mG~ is <pr,od!:!!ccruv~fY' .Bllt sjnoe~t ean be ,easH,

disoussed $3;. PMC of me '!people' or some othe'r P. ill h$ not [been ,dealtw~(h as a 5~pafJlJe P' wn{ffi}is ook. b W:ewm ~e rhe frnm~,orkof'r.h.es'tV,en, P's to discuss: sewwc:e~mawk!etimg;. The firu p, P~Od!l:!i~r. discassed is
hOll.V!!

in th,ws maprer. We can Sl!lmmar.Lse ~he approach. ;to .mall'kedng stml!egy that we F~g.2.1 ..

sofar desCf.ibed.

~tiI

rhe€orm. oif

Copyrighted material

1IJ
II. (ii!!J'

I.
rtJ

IPliOduot :P'lioo IPiooe


lji3fOcesS

iii'

!PiliY,~lica~E.v,idenCS 'PS0i3le

Pmmotron

:III:RVIICI PiRODU!CT
W1Iia'[ ,ms a prool![ct'!' ,~jtmo. be dm~,ti a miOC,of 1Htt~lb:tCS;Ml.d. ItD,liiiiles ,o:liUed, Ib, me DIiI.lbtliu:wm; <lj, pd~ A~M:mef b!l[YS pooduCE 'bypa¥~u..1,!; pr.loo.This d,e6n~.Mo dees oot' maJlm a diismcti.Cln, b~WliCel1l, ,rrodll!l,w :u.d, st'iN'im ..,.As we Rave ~Dup:mg in, 'th: ,eil!d~t ,cha;p.lS~ di.sliimawM ~ena. ,plCodilJWt :54 a scrdee aB' Mm:.f,lng~alid. ~f~S ,~~fI:QI~1! m nOB a, eomph~fe~y tall1lgjb~e:'pifiodU!t~ a,d a ,oClmp~=~elf mQD,~b~.e".~tiu;~ 1omeh'!i[('; iSe_e'Oifdll.~ ~r,lIie[,d!.dM£iOIJi1lS. We :ma¥~lfwewi~, lto~ aI,Eh.eplfledomin_d, mWli~ib~,~: o:.,in,~I'sew.i~'~wftiiiJJ~ rh~ IPmmmmm~y Il'aIIiS~b'le Q.liO!~an be l[eil.mJed,~'irod!l'l(]tl,

'me

me

'Th~"_"""rv_""... 1""!rQQ_~~ ,~ __,"''''p.__ _ - .... S~-~-·I· 1!!IIJ~~..i'-u-',~"I!""~',-n-, ....... ,t:' .....


the semel.:; HfM ,has 00 !d:jffere._~:d~rte $efVi~,&-og d~COOi~~dlooJti 00 CFe3JJte: its own L!r~' iJg n.lJIs:~OCltn ~ ditc b .m:tocU ,of the clliSrom:erSi. .Di:l"ellCiI1t~atloil1gives Ilhe:se.w~.ce jim ow,n'Qs.~ttOil1l. i~.d-te .bee !O.fOOiMpGti1tio!l1l,. A '!!fuia:u.c:m inw,e: olarin.;l, ,e. diffea[!J_lD:e Idre~flmJjservim ,ioodttCl O:ffedD.8~ AVlerypodlm,oaeJrlbaif hc~.ps; . Ilulldms~a_ndJho,w se-Ntce ,dJiH-ea:fU'iatiiOD ·CID. be .a.dtie'led ..is Theedeee lcvlin's Prodl!e[ ,oon(je,~ modetWe .b:ve adlp~~d.ev.i.u!ls'!mdtta OOacti'lt M.odd~o, sen-ioes. T~@;,cU_Ai'e~u~le'\i!I~]s ,called eorlebencllf~,ltJtiic l ::tre se.wi.eepm,uot~ aupoitcd. pr-OBllIot sefYi~, amd ,otcndaJ s:e:1!'V,iOt: mmrfa~edi~. 'me di,apq helo,w.
IF,I

IF\ig., 2~2 lhe',S~~'Co~t l(So"u~t~Adap~"h!l!.l~vin:~s


.~Qt

l~vem$ &:Kotl!et"s

d.~SCIi.I.ss~Olll ~,n;J;dIilC[ (If

me-veJ his b(MJkM~.lnf.l\S' bill. Ma",r"'m£lIi~


Copyrighted m aterlal

COR: B(!Ddiill:: Th~ .flirst Ij~g is ilh~ CD!f'(l'ibI'Jn!!d1i1[ provid.ed

by

.no .rew~(!e,o:ffefing~ Eve:1Y <'i!!ifVlce pmv.id~ a ro.U:~,fiI,t':fi[.CO'I"(!:benef:it .Is wha:[ dIe buyer' ws rHilly bU1ing~.h ~sthe 'use or Ibcnc6!t I@!ir soJ~t~Oml. w.hicb .h.e~~.~ookingfo.rwhHe gO~l1g;for'theservia'. in ,omer WjJ}.nb~f lis. the need ~r W¥!Jt dun t5. ~jng: .ruljfmed.W~n, ou ere DliiI.yJlg a, d,ketf,of·a;. movJ'e~ y cOlre belJeflt Yii)U are

me iirm.

With.o!!l:~

tj)~ IGO:r,f! bem.~fi~:the~ ·

j.s

me

buying, js ent:el't'ainmcnt. When

')fOil

.aJrc billyiDcB dlc services olf a softw.e brm. rbeQore bcllefh: you buy

.mlaybe I[.h"c:l ItuilinicalquaJlity. A 'Visir~(!I ~egrm .Iea~s )"O!JiI h.eahhierr ~ .so keafrh and, i,till~S Ws fhc: C£H:e ibenefit f!j}l,I, bll1fwM~eavaui11lg ~e suvio~ ·of a .~m.Whl~n YO!! buy a, ricke,. &,~:n1il iIIif.I~DeJ CO~: m d\te beneRt' ls trav!cU:rngfrom 'o~epb,oe to ·d\reolth~r .. Basic Se.mcePllod!u:et:: The ifll'tangibte :seif!ii:iuifhmll!l'~ wb~.ch.fh,~oo.Fe bet!l.efi~ is (i~i:~ ;s ,C3lII)ed he It basic service, The' sem~' (il[,l·mJpanr ad<h: (c.fita~n n~mt~ryf~!fgr('$ ~Q' QIJIR' beneSrt .;J;ndl~lfan~f@!!:'m$it im~:o' b~j(: :!ieIV:io~, B~j{; Sewj~ OOn,s.iSit:l (ilif' ~1 tbQi!!emCf@!!'s. (:onSgmef"l ~~I!!!merobe p;r,~~'t ~n :any ,offeri1il'~ For ex.amp.te.~iiJin a~[Hnle bas :airrcr.am:" alTIldi .odll.e:r ~nfrz;tr.u,(jtl:iire ~Ol iWlplemen~ Itheir .~J1I'~Cle. Low ,oo:;~

""Moo

aiiUnecS Uk<:.Air Dft:aD.p.rovlde· if.!! ICUIClmer&On[y wi:th basic servke~ &pe~I",d! Se,mcc: Cusmm.els.ex:p~c't m p,t celwn seN~ce ,qIU~~~f fea:[ur.,es wben !\hey iPlIlr,dtU(l: 'Ill st_n'ires; So.me of dlese ;Hieurnv.ritten. ftaru!lle8 hi, a g~v,en ronu:xl.For example. a fasl foodrcsrouif3m11! ~fi.Itb.e U.S. is 'eJ!:[pecl1ea t01proviideFe-St rooms boHets). MIOSE service Arms add ~he.-Se acui.bu~es ~o (he stA'ilGC ddivery,. md. trnlilsforIrulI brasjlc .sC:n'.kel!O ,expec(jed ..~nr.ke.\Vh€n one b~,ys 311'11 .Mrline dckct, dill!'! pMiSeDler expeots .good. in~:6Hg~tfood,. ,leas::1l'1t ;o;enrloe£m.m a.weU-ttraiificd ,crew ete, M:os~ orf dlJ: .aillrHne!l try ~o mc:c:'t
I

th.ese udl. deli,y,er the !,expectJed[' sef'lllice. Augme-lllillei ,sema;: llheaugmm[)ed sll;fVke prodtu:t ,oonsics[S ~h¢ measUlMStaken ~O' dliKe~nlt~3itt tM: of sl!rvIi.ce£oo.m c()mpedrors,and'IfJll'Ov1di.e (hem. 'w11l1h .se.w.ke .ql:ilaUry beyo.lildJ I[bi.e:ir ex~ta[ion. Cusl!mncr deHgh,·[is; an (DIbj.ecriv,e 'Oi( augmentation. b lcafil. ~s.aid d13:[ d\l.~ service fir.1:Jt .isddw\!'.~rin.g an aUI)ll1lelill[ia:!. seN~ce,whf:n [he .se:rv~oe qril!l;a1~:[JI ~s beyo.. FJ.dEhe ~~pe(rnltion. cf lhecw'oomer. Aug~enl'3d!ll,.Il. jlillruf;S~[fa

cost. AI dlesame' dn1le,aDgme~uado:n is wha~:makes rhe servWce'oompeddve. A!!!!Jgme.ntafio!!ldiffer·enuales a servioe f:romanodler .. ProYidli~g free .~dghl .S!!!!.ifSE(l1overni'g}rut pwenge~s iro. a_n <ti.rH~,e or IprovidinB;
&<;il:iir.i!e.!i .~ike 3i.bush:1JW ,oen:~ef jill fh~,dI'Une IOIIUl,ge ean be c{I,msidielled 3.cS: 1liugmenll:t:d s:ervio: .. Monoolnpe1tjtio:n ,~ plaa a.'t dt~al!lgmeli1i·ta~ifin ~l!v~1.B~Ii1i.cbm;allk,oomp3JiIli.esadd 'belnefi·[.ii '1)0 d\ie.ir serviee iJ.flie.rlng:stha:~ d~ljgh:t th.ecl!.'I:s:oome:rs: .. ru~: said elliil'~ier'~U.llim~~uaciofliadds 100 dll~OO!5r. A smart a ma!£ke,m(' .ha:s. to m:ow wherher tlhll: targe~ marb:t is. I~i1:dy ~Q p<l!y a hip~!! pr~ce"'r tbe alUg~~nrta:ti~n.s:. Tod.~y·s ~.gme!lltc::d:p.r,l:,u:ilillct beeorae romo'F.ruw·:Ii, expected, p:r,oduct 'became ,cuswme:r may mke attain can bc,n.eilits:for ,gmm:l1ed ,o:n.ce they ~cj.¥e it. This has. bap'pcl!'!!ed w.idli 1111. ~fi3i. &,m,eilroom.t~o:r inS.f,HiCle. At O.nJe Wne~ i.t wa;s,anrii[),". Now,. lilt:ws[abillf~f g:ramed. Compe~i[iors e3is~~yopy mOSi ·of m~ c .a!JIlfl1ilelil'r~feawfle:s. Wh3l(chey canno![oopy!, howe,ver, ~:!i ill brand. name wh~db is 1q,aUy :pr1ofccrredi. am.d. :as!;:0darlOns th~t Wit cre3Joos·Intlh·e oustom,e.fS~· .miliJid~.

Pot'C'A'ci3il.Servii«ll'bis level includes aU theal!!l;gmen.tat,~o:ns an.d. (he fllltru[ws~ic p:r1odw,ct Id",elopnu~:flI.r~:.


At ~his l~~d., r.he s~'rvi(i~firmnies ee .find, OIJ:r. b~[~~;rwa:ys (!If d.eillighr.~og, ()!JS~Or.WUl;I!'S. A 1l()f~eI in :3, ioourics[ locadoft whlch~s in,w,tiallly S(!mrwg (!In~yb03lrdinG and !llodgingcan expand imelf toa llie!lO.n and: Itake im rces.taern.tso!1ilI s~gh~s:~ing U!U!l~J afif:an~f 'Cl!dmf;a~eveillillgsFQf~~S ICU$~(I!mefS the~ bymaki ng :t.he~rvioe :m:I!I,cIh morie I~ftjoty~blle to! mecl:l:smmer,s, A !!t!iili~:rs~ty. wbkh provjd~ ~he CO" be!iildil~ ofGdl!la,rticull,.~n
If,mmsifo:rm Itsell:f by ,d~:fIefen:lI!iuing .~irB servioes: ar varIous ~e·li',e~s.hha3 thle po~e:ndal~op,rovide great
:i n.

p~acegenlts,.brlng

QU~

late5,t deveIQIP~el\l:tli . .~iIl d!iffe.rtent du~ipUnes dl_l,ou,gh .research awd!. w1ork, hmd

Copyrighted material

na_fidl willib i~dus~ry lill ~tsoon$tdtafiq .el!id~VOf51 ,pl,F(iivM.esal)e~~.itceducado1iTIlj!canl!Md\J. lhmijgh ,o~litlie , Ipm.am.s~ ,ul!d~.11Il'5If:I,Oitber pa[[S eif Ith.e~ world" an, p~bHsh. its !@'Will jiourn~i <1Indn1e'ril!sJ:et[e:rs!, :~u~d, u:~M b :mn1Iarka:bJe mOOla. p:rleseill(.i~ 'by t!!ll.fniDg its :~urntyii!fld sucoes:l1f!!ll1 abUDrlii l~nQIbr.m~.aJgbH5adors,. SUCQess&~ i1fOllS <Ire' th.c:! ones {b3JJI::ale~nn!iJiV3iillive! el1l.(!II!!Ilhin oo.ms"t:.tliil.dyaeaElfiI'l a1;llpeliil.t~, b~:ne6,ts foil' im Cl!lI'5[omern 3i1nd do,r,e]op p~~ellltjj:d serv~Ci:e-s.Corwpmias ~!ike Mi,cFO&ClftJ. Cj:scoI~ am,d Ameon.loomc;o;;; d~v~jo, ij<rco~crea:lle flu:lr ,o:fferilit!,gBwh:h '~beb'CUlStnftli.en.. If'l eo,mpan,)" WOOtSI)O be: a marke~ :lead.ef~ ~hen ,the e~l!pka:lii:si~ho'uld ibel1lntlhe ~O!utet layers ~r p:r,oditUtt t~ti!~1I1he!ii!ugmen~tdsetvw()e Ithe Pf1odUt:1f .d th,e; po~efiti:.tli pmd!1C[. Sl!lIdh obJta:w.v,es :rlequire a ~er..io:us [1t\'Seaf,di[t OlUld.inn:!Jvllr:i.on,ori.e:l1Iitui,on and. r'c:qu~r:e invesm;u;lilr In dme and money., T.h.eQoncep~ of ce-creaeion of se"~.cesb:-y rhe cus~'O.m.eil:' the strvi.a:: and P:llo,v.wder.m3i.Yi1Jso bellls~d.~ol gelllef3:[!t £ho~e :a1tp'9tarlons [ba' ha!.velbJ~ best ,ch;amCl~ b~in:gapp1itlc~alttd of by dil!,e CW;[Lome.r. AnOim~fwa1 [01 ~:(!UD:,k.at :se;rv.~~~ill w 100'& at' eere u.ds!!lI,ppi.e.mel!lfary senr.ioes.. .some' :3.!!!I.thOIFS ,~jb! LGvdock f:av·Q·Ulr dsclass:i\ic.l!tio(~. Hef-:t" sewitt offermg: is: IS~~iOitO()OIFe d sefVii~s that ~aJt1s.fy :a 'C:illllrDffIiI.~illsminimum, exPOC;[;Ui.O.RSI,. <Uild.sli!lpp.~enlemtiH')" s<::n"k~ rEih:aJJ[ . !Cmprovidc an ,~d:s.~ i]), d1iffe~ndadng :I. sew.~C!epil!iovid.er. :Esse:ntiaJ[YJ' i,[ is. sl~nliJ~alfol c'O:re; 10,1"bask servia: IDda!!!l:;m.en:~oo,Iilll:' po~elj1t;a~.serv:k)~5 ~haJ.il:

'we~a've' discussed in dlltabo-'ii"C:' 5ecDon.

We: ,hav~[ioiIJckOOl, !i1pon brMdins; ·of ,3. Sfl.rvW.C'e;a;5, ,;I, dili:D"ereruialor ~n ~he aIbOvcSle~t~aIB. We' :a1S(i1 ,1j1,eed to u.nd.emtand t'hafr senrices need (0 haR bmnding slm~e;i.es! I i~e ~heif pmoduc[ 'OO'JHlIrorp.u.•A.semc:e colmpooy n@ds '(:0 maikemolioes ill term", (Di.f bl.rnn!d.n!a:m!e.,acssoc~:JJtod ,sy.moolls,. t:liiIlll~ti,p!Je 'btalild.~a:mes()lt unibreUa

branding). ere, f'o,t e1{arn,te,. binh

.Iced

1£'0decide

wh.e.tller dLeywiIJI iI1:~lJne aooot!,A1t a:_A

~omedtiD~Of'

~'Wif use

a genefic n;jllifi.e An. :illiteli~lI!iiTIlg,~pe!i'ilmeliltfuil.ifiI:'iJ .. ' IN"G V:ysya:bookwas~Q


II:., -

fiil:me chei.r sav~fi.gsaCQi}ijnt as


··C I

Oc:afllie. Ci[~rbm.:doo nioo.tk_isw~tha ~avj],OJ~a«,ouml£lcalled S!!1v.idR~~CIC] '~ ~,fonD (lia.rb,ranms ,for I "IlL· .;I"W., ...... nrn ..f ~~rv.!J~' WI4UCw 'OfW!ellW.~.~ ._. ~.. ~-.~I,U.l!.eO~l!o'll!.~!f ol~e. '~" ~...~LiUm _aWUJF :an.Ql.\!ller. ---'- P -. Jl 0"~ 'm'CJC.,~''n- Jl-. ~.•~~ J'~ -- -- - ~C~'IC' T omh_-~JI .r:~.. -'f ~I!.1~~L~U~~~~l\~!~ ~, res '0 _ ~"
.ofaJ~rh.e ~~emel:il:r&oflb[an.diflg creates <\a:oi,hefiewU:;imaGF for a :S;~lVi,ce brand. Bl".;1Jnd~ng; Interms of ,()ons~s~ewum.e~3!g~ dJdiveqr .from :d~ffe[\entl1oum'"pomm is :liUIthe DII0~ i~},():r[.tlJ!n[ [,()lLs;ewi:oes, :asltey' mal:)' lbt;ijM'anGjb~!I! fof' dIe .11I108tPaJ'It.. Tli:ter'(!fon~ :111. 'CilmruUy ~[hO'R~~: ,OUt b!~j]/.djillg s:tf'.:uegy ls a.ooaJow pa~t (ii,f the S:enioe produot, T.1I:i.e .Qom:ef&t'fi.[i,t; (ilif th.e b.FaDd ~traliegy~ ,of (:iOlU:S~'J ~s dll.e ~liIi~lJ1I.d~d os:h::~ol.li1Iing~ e.x.plaintld. i;li1I. ~he pil:'leviiifi)~:S p as map~:el. 'f.ht ba:silcservice ·pfOdI.uc~~ :s!hollii1l~d be ilIug~c~.'Ii(ed'Wii:t~ a:,p[flllpf.i3i~ b![3n.d ,elemmt5i1ind iil'i~oda~~on5!,[jo"fleiUje a disdncd1ve Id.e.ndty, lli1I, 'OOD!s!!.uners·minwJ backed byC!o:ns~s[(.'!iIl~ly,superior ,del~v:eI'Y 100.ke~p'c!!l.swme'm!il'f!l. f'OU[ si.dl.e. '!C'cc-~.,b -. v Iil.~· oons:tam:u ~'-I-,IllIVefi3if1!1J!O, . as r.f1l.>e - ,. _~II·,C:"" cyc~es Eefilll.jI, meb ;S,[]IO~eF- ~L, J: - ",' 1,; S!ew.~ce ,lW.re .. .jI. L ._ .Jenr~Clemfl.Wl--,.~- gay need ,_- ,-- -,. II'~'J maml. ro.f produc£s.. BlrandscQn be .refre.shed ~hl',[I,l)JghC(!Int:empomry 'Qol!nmM.I!il~ca!don~lIIpgr3idinBme ,bysic3!1 !ev.i:denoi! a:s\$oc~3i!~~d. w,~th. im visib,.le :SyOiilbol~'S~ or !J!I,pdatin:g ith~ deH~ry' 5fs~li!ms r.h.rou,gh IUSfi (!If .[I..I!W' ~dln(iii~o:gy..As we hav,e dis(:~:$:sedifll ~he pr.e"dlln,g secden, a sCfYh;:emarkr;[)er illwa,ysflIJ=ds t(iii keep, ~IL" L·r· ~m~ 'IL' . • ~" .• _. -II 'b~ 'I'_. .~. dl'·· I" .•. t:' . .,_ mUilKmg ,o~,.3lI/Ill[f1lC pot:eIllUaJ), Sell¥lc,e ,opnons aV3:m~;a1c rolll~n1Il' illiil.'IJi. 'U·~C.lOUS~y U:r:¥eS( .wn.som.e Oi('[llIe,Ii1Il{O
Togedll!erJ
3IiI:'cllimcW:r,e oo(uis[wng

·th.:!! bmliil.d

me
T

I'

••

1,,-

ke -~ 3-;- uppe~nilID,1,!!... -;- (;(ilmpe,, .•. .1\ ~ >,- d - ,ofa-t:o¥l.eotedi3Jr-ea in m3J!t:liV:llefV~-- OO~Ly; u __ allOYS - uu J1ire:v:,', c II .l ~ _~_e, ...J:ll ~ t ii..... i..fi ..,.[t .~.... ··orj'lru{Di [!_l'1J.!t -n-8' -------------1 . _ce...s,ci paymell'[ ,OpriOfi:l:..DDor coUec{Jion ·of bn~gCiOU!~.dI.bean eptinn C1i)nV~fi~ntl!O' 1in<li«Y~!iUib5"ribers,. with .:I. uceip[ deUv:ej)esdat .home.[f ~hellilew;'!pape;Fb6' ,can d~, it' why Qlifi't Ofgp!IOi2:ed seR!ia plmviders?
c J

~,~e:_~

Copyrighted material

In ease of II.!:!wservW.C6 as weU as 'th.e ,ex:isting o,nes~ t!he servmce ,Jea:t:!!!I.re-s <Ji.m;JJrke~(;.r inRnds to CllfJer ithaJi[
iSh,Ould be clea~ly idefit~fiedL f'o!!:' imti.Lnoe" a [,estallln1in[ .sh.oulid ide.ntify theme.filLl, ,(h3'[ j[ willil ,ofFer' .iJ("5 'CUiiI1l0m.e1'S. H~w-:evert:slncesen'~ce d!e.~d,gn suwtantially is differ'eDl[ &om produ.cl\'i~nthe Gllode Oi.fdcUvl:[)" and !Cus~Dm,er'$vhii~s!ttil rhe ~:servja fac~ory' (as i[ is cailled), II abo needs an lequwv:alem of ~he'I"H'nd!Uc:tilon pJafl 'toobe worked OUlt. T,hJs caD be dO(il.e~m seve.ram. ys! bur wbat ilLamOUTrub I)O~S the maJ:pp~:rng;O!!l.t of a, ~ .P,rooess fair [he service (iji be: p,mduced and deljvered on [he one haJJfid~and the hand.liliill ofvario'Uls cus~O'mer Wl!!Irnpoillitsi rfthe &oint efid)3ind iba:cboo.m. opera:thJlns (t!he back end) Qnthe odl,~r. W~w,~u. discuss P,Wce-sSmapping alinle ~.ate.ri.fl. the book!, though if should. be kept In ml.nd. ~hi!i[the precess am. impacJ1I ~h~ P~ll'O~pdollI!! QI;f a, proc!l;liI,Ot.
I

Planning a N,ew Service Product:: .A New Tellevi:siion, 'rGlrammle


Let us lQok at 'ch.e:senr.ke de-swg,...p'm:b~(!m ff.om[h~ poin,l[oifviewof a teruevl~ioirn.,hanne.l,~ecl:,I!d.\'ie WR(ii! ~sin ,charp ofprogmmmin,g, ~.t1i. ()rderI)OUlil,dJtfSnlnds0me of the nuances ilil.vo,[ved WI]!product' Idecis~o,m.

i\:sSi!une ~hat :this 1geCIJtwve is W'orihln,g wruth. a Hiilldi en~enadnme\!lr c!h~nnd~ IH~eS~a['~.00 0.1" So:l:iliY~ ::lindhe hasa.task or dedd:l.lI1,g the:pmdu:ctsfo!f ,the next SeWl(!lm. Of (;OU.rse" th~ pf'!:.'Id!J:I,cteeuld bfilm~ TV ,chwnell it'leJf"aJ! ~ ~~geF levd~ burwe are loolkIng ollilly :alit the p'.rcd.UC[ mix: cih,;I(,tht: chaanel Gould oi~er •. Assume ~hlc he has al. <l!pdol1 (0 dJedde on rhe pmd,UlC[cype~ dl),radnn" a.nd producer ~or various tdevIs.ion
pr-ogmmfl1:e:'l. For
<1

p!tu·t.rcmarp.rimc: tim.e s:lQ~:l'la), 8 w' 1.0 pmo.rn w~~kdays. Ithe ~~cti!dv~ ~hou~d .scd~[ :

from the following rypes ofprog;ramming;


1(;1) Susp~n&t;J (b~ Ho:rnilf, (e.) Family s:oa!p~Cd) Comedy" ~e) Acd(H~,. I) Ga;rne s~ow, ( mwic. (~)Dana shu,w, and. 0)1 TICtlJVe~.s;h.c<w'.

(Il IQuizJ

(b) li,glil:r

There may be mihef qrpes ofsho'WS a..... a~I;a:b~eJ. bU!td~c:ab~ve are en!@!ugjht:o' ilm'f.rnit:e the ,kiil1di of d,~dsjons
if!!vO~Vted. Resemdl, S~hOiLid be don~' as tlu: :6fststlep .in rhe process,. 'Wh~Jt Iq~ge.:lt~Oi~:!il shouM.th.e eJ!)~C!!!l;tmv,~

In,b,u:~e in h~:s/her [Ie.sean:!t? Some .of ~h.em.:maf inclade aud~eJ:1ia:'~Mkes~nd ,dislike:; of c<1JQh type 0'£ p'.fO;rammwng that aft: lUilder O:)lIiIsMel:a~jon.Imi3!gine duu ehe eXeC'Ullrive decides to "ick} fora. panicuJar
da,;s prime :time shu:

• 31. ne ..·h~liU e 5us,pense


.. ahal!f:',M!!!lr ,oomooy

.dr,aml~ show;.

m~eCiDor
lookfora

T.rhk~ejai1J~

and
[[Qi

.. m(u~ber 30.,minu,'De fiunw~.ys){jlap Utt:: K1tuUem. Now~ Im:e:; nut jobwowd be


theteMW the

pwclg,Cet who

C~

deliver tbese types of Pl:lqgwaJinnillngaf.l,d

p1\od,uoer oif "1i- gl'!!!'CAShow.. ThJC eJi!e(!Jt~veoo £I) .getthe show produced, [lepaJdk:age [( with 3Id'w1'tisin,gobtainoo. iom advemsingagenJ::ies of cl~.e'Ditco!.mpa[l.~eswbow.afi£ to, book ,these ~~i@~S.and. prr,e,sent I[he fimal ploducll." (t~sbiClW p'~iUJS tllil.e . ad-vemremenu)~o dIe vie~:rs of the ,ci1afillil.et
s~ for another service p:(lovwd.e!l'~ihe {
". ~I ~..m iss'UeS~D!VO~VIOO". 11.1 lnCIUlJle

~~.~1

lOi@kin:s

FiI',om ihe albo·v,e ex.arn.p,le•. ~I[ ,oouM be unders,ti@od d~:a:t mmy ru.uu1J!Xs~be ~[ in. iP~anillinjg, pf:IOdlilCd.on. Of: dieUVlery,a!flt bwv,olvc::dnihe romp,l~. service f'~cu;iuc[ caUed. a.' (e~.evis,iO.I1I.S!:ru(DiW'. F tQ'nru ~. p:rooll!.(,1er'::i: i
newpOlln~
., . •..

[Fl.em9i~OIi'

Il

.'"

--W~UCJH,StillS

IL··.L·

Il)r

aCf:OISare

flO :"eempwoy"C!u~w. -at ;S,nOIiil. U


JI . t,

··L

~1

'h'

1-..l1L

ee

dil.ell},ame Qif ~he Sh!i)w (;5<hA~td (he $O~P smn wlidl £he ~.eltew:il('" g;.v,en II::hOJ.t many

name beginnwUiG wwrth.a. "K" ~), sho,tdd

~t !be .i.nnGlI'a:dv~o.r s!tk.k to, ali!'!! ~Mer

S:l!!C-Cessfu~s~apiS had a suocess:fUI. fOirm!i)la.and,liio on.

Copyrighted material

50

LO s Mark ling

in an pr duct marketing rear h can be u ed to get con umer reaction before de i run a pr du t. Th· m rk 'ring rc '. r h w r V'ry \ ·11 in an \ 'ring om of th que rion thar a ervice m: rk r r rna 'ha , and w rks even bert r i rh marketer u e ir in a regul r manner b id b in com rrable with it u e. Many fir [ time enrrepr neur lik to rely on their gut e I n rend to di unt rh re ul urv. Y r other do (he urve r rry nd eed pini n lr yhI hem. I u ed r-' perly, marketing re earch inr new ervi e can provide valuable input into ervice de. ign, particularly 111 i iri: in rh irn ari u .er i e features to the on umcr. blin whi h many mark r r rend to her garding what the on umer: will value in their ervice. or ample, H rvard Pr e or hie in er, in one rei Ie ,h m nri n d rh r rh ughr rh t cu t rna .. auld pre er peo le t deliver a h until rcscar h pro ed that rh cu tom r r rred T to human rell r . Though rhi urvey h pro en ri hr in the ontext ir hou1d al 0 be d n in India r find out whether the same attirude hold ood among Indian cu corner roo. An inrere ring rele i ion programme [hac dicked in 200 on the ony h nnel w [assi j. isi Koi \lobm. he ro rarnrne, based on a Larin Am ric n televi ion erial. has completely iff'erenr I k from rh· ap p ra , g me h w an mu I ountdown whi h compri e most programming on [he nrerramrncnr h. nncls. Th 6 Howing rpt om a nev report di eu es th 0 ible reasons or its

DOPer

pee ive 2.1


What Makes Jassi Tick?
The K-serials may be dominating viewer mind space and indeed, the better half of the top 100 list of programmes but experiments such as Jassi Jaisi Koi Nahin, the Indian version of the hit Hispanic show Yo Soy Betty La Fea, on Sony Entertainment Television, are playing catch up. For the week ended November 8, 2003, in the base population of C&S 4-plus, all India, Jassi achieved a TV Rating of S.1-the highest so far for the show, and at the same time, a significant boost for the network. Traditionally, the programmes on Sony have hovered in the region of 2 and 3 with the most-watched programme excluding blockbuster movies, peaking at 3.2 or 3.3 respectively. Jassi, however, has seen a steady increase in TVR figures, moving from an opening score of 2.7 in the first week of September to 3,3.4,3.7,3.9,4 and 4.6, over the last two months. The reason for its success, as a senior media planner with a top 10 agency explains, lies in the universal appeal of the subject. "Jassi is an educated young woman, who is desirous of being something in life and will not stop at anything on her way to achieving it, despite the drawback of not being a looker. She is contemporary, witty and has a mind of her own, and in many ways is a reflection of the aspirations of the middle class," he says. Indeed, this very aspirational quality of the central character is what drove the success of the original show in the Latin American as well as allied markets. "It is a pre-

'that Iha,s.w{!j~ked jln ,seve'ra~ m;smklet:s/' :BSYS AIlII IPhadnls. IDimetor~. Group~TAM !Meiia, Research. !!"Hower1/alr" there· llIa,va been [otheli 'f:aetorsl 'to'OI 'thai!ba"., [ctl:nt~iDut:ed 'l'O Is sruccess· ,suc!has,the mark'elifilll ,around '~ti1Je' !stilow. 'wlhl~eh was SYiperb. Sony haft no stonel 'Uln~ull'ned Wlsingl ontliine ,as, wen ,as, o[ftli.ne media rnclll.uimgl ,M.d'jo. [outdoor, pirint" nash mobs and iPA~"he' adds" Anolher im,fJQRanl,contributor·to the success, lof '~hel ,show !has been 'the[basic g,toryline, ,and charact:e:risalio'n ttle, fonrlsr ,11l0¥iinglaJl ,8. r9QSonab Eli pace wilhom 'being too much loti a ~dragll!land the laMer, attempting to establish [8 realism:: eOFulemwill,. thel viewers:. rcrhs[ etlaram.ri'satio:l11 as wel'l as Ihesefectiolll [of' l1,eproduOtion hOllJ1se[tIII' el:et::ule Ulle, Iprojee·t:hav,s been cnu:::ia~ 101 ilts;sutce.ss~ :sa,ys IPhadnis., ":Sany has, [gat' it' ~ri:ght 'wUhtl!'UJ cnoi:oe 'Il' a P,un~'aJb,i ~anl:llv'f'rom'w,hSII'Ellirls' p:m'tag'C!ln~st'hails8!n;d fu'o'und wihJQ~ 'tJ'IU;l"s;t'Q~'
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'T,tiH: ,1SIe-mIOe p,rod!uicm can 'be m!Jl1lpieF~Jly :[[I,ew, ,ljJli!od~fied~Of 'lmp.~yi.mimdon br,andis [of lih~ (!!xistilllg. P1l0dU[Cb. FiOf exROII_pie:, man.y mutuai.run-d ,and Jjfe ,insuran.cepKJduchi, :aft: 001., diReren't' in bl13i1l,dj DlllU~~ and more [or less Idlile same •. every olLhcr f'eaWtc. n Evenwh~ntbe' product is, RO£: dlfICren( lTom [odier exiisdng [oifer·np, die suvio~p ... 1Iid:e:f'a:p, ,t_um 0 ,dlistiLngWlShimd h OR two' dliBgs-0.rand Dame and, ,qualUqr of scrviee. P,or aampJ.~, .aU air,lbu:.s: .ma, prov.ide 'tfallSpilHa.dcm. [~(!Of[t serviite) ftom pouu'A ro' poim't B. 8!!.1E the S:mallt Gries: diff'e.Rnria~:e'b6ed on br.Lmdj, b~iI.dimll tdfur.ts: ad, a,mix 'Df ulilsible aJild. jn£iIi~g,iMe' .iffe'Rnda~OtSi" Th~' ~mll'dfer:s: ,iD!tefma!tiOlllali d !I),1Il, ,aJ_nd[dome-SfiiIC sectors uslltaU,' mav,'e th~jf pfW!fef,u:d 'bmndS (lifr a:iir:~itlles. Even Ole: ,same' ~fOiDd. !in O'ilbiri, wilh a ·scowl" or 3! ~smi!L~J' make ,I. diifl~mn(1-e 'llD' 'Ehe cus~O!lif:I:e"cfamped u.p i.D. an !ccono,m1Ia1i'bjn. tan

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N ewsenicepmduasmil!:Y ,requiR the service pliOvide.r to expl:dD.30d. edu.eaE1f!' c,o,n.suomrallloIllE: dtG' ,die IClQn:cep[~£ihc bendits"amd idle opemd~,n_ru ~P«tl!: 'ofbuymnG: ·th~ ~fYi(i:e'. flolr u:anp~eJ' wben. mUf',ier'senmees
w:a-s a lee [o.f[d~smlll:,iit.as Wi w,hti:irbier' they woll~d d~H~f'ili~ [dflcuIDlillim a:t tk~ ,iIt'.SOfliaiDon. 'Bes,ides: ,it was: not deu wbit was [he righl: p;ri!!l:!~'~WD. '~r.,ms [of'¥'31~iUe' money' fmf' du~ ,cuu:om_el. The for L .• ... • ~':I . ,. ,. ~'n' -..:111 L. .;1. m ~.IY1uUI~ II ;!Jus.~ness s~gmem: qlUOIiU, ILuC:!came :I. mlJor user [0r' C:Olunef S(!fIiI'l~SJ m dl.'":L.·' was to _[(!iWe'Y '~Re • €I"".II m:lS I~y custo.m.i:rs mu.d1 :late:r..
:first' be,gaJiil,~ there:

'~echln,Dlfo.,a.d Services
The' dlesi.ga [of a service p[i(uilllllcctsom~tim~ d~pend.ls '(Hi}. [he .iafmsuu,ct-Ullemd, 'dle' a"tai~.biM,9' OIf' ~eehMogy. fo., ,aam,ple" Sm:r TV' had. a pia, to landi, ·dimcl: (0 bom~' (DffH)r ,ciEtarnuiI.rlBi.~lodi.a., :Buri,t :req~w:~d ~mme.D[ ,per,mi!sjo[JJ 'm bring lh.e '~.echDolol1· a.tu! bf,!J)(dw~r'C!''~ClI Erndia~wlb.iihw:a5: [doniOOl"

Copyrighted material

.A.ncJil'.ber-nl:in,le ~n Imldia is that ofcredwl[ e

usage" Th.e In}djanoeb:.:p:ho~e i.nfwttlllcture ~I.1OO' w-e~ W a:Ue,wtli'l!e :illl.:lUM:I::: v~il:wfic~uiooofCUlSmmeil' cl"ew[ bwanoe.sa f~wy!~nag,Q'.•, whic.h. S.lQiWW . .Q'!l>wn. he spread of ~ c.rcd~.t,cards. T.his~,CiClIJi,~cd ii.th,'llhe Fn,er:<1:~. a!,V'~IfSWOIiI,~O' CJ't\d~tam:onglndim.sIPlrOOded. c.ard!,oo:mp~jes It'Q w plli,.fl.,d.e,ri)ve[ me fig~[ pf:od.Ii.I~[ :Stra,wl¥.W,~~h im,w-w:m:eHu ill1 te.chno~l@':gy~ dl b~tte[ l!u~.dei!:':stll_Q:d1~g f ! m o 'OO~l~!!une[s., dl,e; ~'SS!i[('rs b<li:Yer,~ee.ndr1~!JnQhedl dib.h: ,cams. Inlndia. andchey sum 1[0 be mtmilfig WiI:: n I e ,cf,ed,~!t ca!:n:l!s. Sim~lady~ ~111e,cal!I c;e:nl[[,e.s·a[,e l1e1mn:oLol1 jlllt:tDsi,ve,iiliIlld.requilrc ,power and 've~eco.m
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thought: aJJboul[:us~~g caJilll. ~Ltntm fo'r !mi)i' :ki~ds «'1fservi,«s, ,re~~Sill.!!nch.~nqujdes >or '0St~saJe servIoes. But [ooay~ ,every rompaJ!Il}"of' any s~~In.mJl~anoeh;as,Gtlce!llHeS! forvarlom: acdv.ides. The State BaRk .of I.f!l.dia. a ~au:entrnn[ im,l!li)i Cif,edjt ,ca:lI:dti,ex~lil.sivelliy uses 'C3ij~ c;entres 100 :sel and :;enriioe its c'[,ed:ir,c;t[dis. So doe;s[CICE. onte~of l~hep,iomeers'im0ng mnd~m i±hlnlts: in, i(-edmology irddaav·es. p,er.specHve2.2

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O,PPolrtuniti;es
IHID'IFC IBan'krecent~y !laullillctled the ~healltJil p!IWlsOIied1i~ca'rd'~ wtillelie, iit has j.oirled hand:s Wii~hl INlaUoU1ilal ~nSlillralrnoe COlmpany lCliln!di Maste:rCall'd IIi!i~ell'lnlartioliTlallto, oierrca.slrnlles,s m.eaiiolailm o,f Rs SO'.IOOIlrandle crliti:call iiUlrile'ss tover of IRs, 1:.5 llalkh en 'eacihlcard, dislOount(s: at leEH::1 t:JoiS,p'ita~s ,andl on hea'ltt1lQa~e :sE!:rvices, and prod u;ctS.ilIBy offering ingl s'l!N~hvalllJ]e~dd1edselV~eeswefee~ '~halt:wewilll net ,on~lywin ~tJe!loY>Edtyof ,OUf e'xis,t]]lmg I , t1usttlmers but: alse ,g:e~n:e'W c:us,tom,ers'I'" says $,waroQ\p'. T,he 'oompany had also IlalUno~ed a QCI"brailildedioard 'eartier ~hiis,year fOr ,gove:mimeli1t emIP,I,gy:ees! wIDth eSev,al~amJ e"'Q,avenn,BFlIoo j!m1iti'81tirvEI! of'tih,9 G;Q,V,ef,nmernlt of .AndtiJra

iPJ~8Jdesh,.

,On the ,~~her liiIaflld" Mw' Ramachandraml (Jf CfrlliiJsll:iIlk say.s ~hat ,iiI,pal11t: fir:()mJlgrow,itng! the o~e raU paytmen~ category for .(':alids",Wha.ttliile, Icomlpranies,ae,tually In,eecllto dOl is to try all1rl make lIIsa,g:e ,of earns simpl!e ,and QOrlvenient b:y o,ienilmgsuita,ble,_v,alue-adaed serviioes,. ''The oomipanies s~o:uh:len:ooWlr,ag,e IlIIsa,geof oards for clalUiy' m1IeediS~ :m~clfO-pa.ylmeriits ,(bl!.Wses,.trairu;", orn~ema~ic:k1eits.)alllalItili~ie&(tel:ephcuille i 'eledri,city am:i gajs~.,0 u rthlillils,t areas tarethereflJ:r'e ,on ~II'IU!jir,ea$rnlrilg ~sag:e ,ayenlueis~hmWlgh ti:e,-ups w'ith mi8W (lategQflies. IF,oli'instance" lpe,yiingl MTINl'el'apt"llcUlIB bill'sal ~OC ,pu mps~hrough 'cJeailt ca~ds ,andl.so' ..~ l on
(~af(\e=
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and .had.aJ,ve:ry h,ip. jlil~tla~IPfiC!e~ barrie!l:, The teebno~h~&r1 also n.ew {wrure~e~.~m~oa!lloop ofW!L.ij:~ and reqLrlred was an. eJii:peosl¥!e: COMA.te~]}:(!I~.OI.Vhands!!1! 'Cionilp~j)edl:io, Ie .normal! GS.Moochno~.o,gyph.Gneinsul.unen~$. d 'l'he' .'tSI!! h'w CUSIOORil.~!l'sw.h.(iI ibolUlg,iItt ~iJ1enew ifiSCmnlems c'Om,~:dn~d,of ,qu:ickbl1Jueqr ,dminag,~.d. · o'vell'be~tml e,f h3i:ndsei['lS. U ddng8 l1lJdJd.ed A w,Gedi:er. R~niJilRc~was, oolloed, m'Wii.cbdlra.w [ihe' 1il'.ff~[iJind. w.b.icllil eeame b
UI entry

s~wice la!i!lfl.m.diU faiJ~d, ,d"'.C:fJQ wfon,gp,roou.ot ,Qesi,gn and. f~~lne~l'o:ffer "om ..ReHanee. 'Tht£: Q,fre:r ~ ooming[!ooonsl!!!I,meil:'s,
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me

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~n.Th~E~n()mic Ti'rrm.

'l'bt Hindu~ete., Jill'llWi~J'llllir :2iooe:.

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hendser was s~'read OUt ~n m,ontffilJy ins,calmel1LS mther


made

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a.

:SI!RYII'CIEPIRO;D'Uas: BIUINIDL&:DWIITHI COINVIE'NITIONAL P'RODU'C-Tl; ,AND I,TAJNIDAJLON!E


The seFYice prodncts can be :sold. sepail'.1i[)elyor bundled.

wieh ,orherprodM,cr-s.for

,ell:Mn,p,l,e"when, y,ou buy

a car, or a CO~OtlrTV~ ~he company may offe,r you aa at:u;n~<1I] maint1~~anC¢ CQ[lItra,c[ '~r a warrnnty fc,r an addild()lnaJp,rioe. Thl:s js caJ~~,edI undling ,ofa service W~[h. a p:rod!uct, because ,11service al:ildJ a pffidli,l(;[llre b

seld ttilgether,! In !3! ·b~nde;.Moth.ef ,examp~e ora sen.rice bu:md~.eis an oif&rCmm kiam ..',atllll'S, ehe prum m3l!J]ufact:llilret., whk!h they call "'Hr,lme So~udons" The advereisemenr" SOlifS.;" D~id~d.~o g~t yQU!f .h!()l!!l1!.e pdl!lltedi? A1~(),wus 1:10 ca~e over" ~,ul.dI.goes onto descrilhe ehe wedel' sfir.:;'t ever p<1!J tu~mg; ervi~! in wh i.;;h the ~ eompMywould ul&e' O!v'Cf3nd ,QI[!I e~.tyth.~ng 1Il~"fssary (0 paint YOIIJIihoase, .~neh.l:d.wlil~; bwymg the pa~m and hidn,g ifh.~Iabo~r-'a1ildhJ!)pefUlll:r, r.he'ctean~ng up .afh:fVI'~f·&Jwh~G.h. Many painters neg:ioc[~o dlO aftef
+

mer

ha!.vc'6mlshtdpaifitif!i~

The o:!dvcItisin.g fra:tlermilry' ~Dlndli:a has JElQ!!le (Ii!!:' ~eS'.':l reconciled ilU'seUI!O rhe f<li,:[ dllll{ the da.ys (!If fi:dlse.rvice ~,enc~e.swhe.[\e the cJ:ieadv'e~med~3!"lIDl,d. diem ~ervidng. reams Saif ro~d]Jel' l!Ill.di.e:r one mofamd ..shared I!~le IlliI.m!!ll~ and ~oy .of releasing an ad are pa:!l;f. h· is now accepted I:h¢[Woruncti.ons ,(;;ofrultiDue to J'eq~in sepa__mJ[e rofjc~'maki[lg units, <l:!I'I.d fUtlll.lil£,: w~Hon~y see fun:l'DIc,[ u.n.bull1djing of services, ,es,OCJIUy in p the

wm

mewili~w:hjih ~s,de:fil!l~t~lf~n for mj!u~t~,leslP~itscQ,o:51idetmrng; t!he amount of speci31~:sarion. uliider way

i.l.iI.

:rh:a[

domain. Hewever, both ~he ili1ldusuJ and. adi.veftisersaretaJking abeur incegrnJ!ciorruand ~eH~ng ~p' p,r(loesses~o ,eruI.HJ~[hlSb.rnnd. deesa' t :!iYff-cr~ m:e:thod where the d iemgets ~he benefits of sp¢da!Us~'ti!l,)!!1 ~:!l!d 'lConwHda:li~, b!Jy~ng ~bOlitm.edli:a~ende$ d.div'ef ;wichoull comp[iDmi.si.ng ,om (helJ;u~.y :if[[I!!,mll:~d offe:rw11Ig:
,of !the pre-media 1.!11illbun~.days. Jasmin Sohr.abJ~,Pllesiden(~MediaComJ sa.ys,"[f the dwenl[ is, ronvinGoo aG tbe ~nd~vrudJuaIJs£I,cn;gth of ,creadv>€: andl Dl.edia with:i!fi the ~ameag~I:1iCY~ new'Ould ~deaUy Hke co' award, both dudes to o,ne gfiOUp. However~ breltll~[mtegr,aoon annat ceme ~It ro,sl( ofconJlProm~s6d n~[~ve',o:r .fr.I!!ldii.aruncrio:ns! K~e.pwl.1Ig the bi~yi~:g; eOfisolid.ui(i!fia.p~Ft~ the ~nl!erim dLay:s o!f.re:l'a~fijru.~ p~al1il:iliil\.GWiitnin ehe creative .~ncr .~o~d. id. d h.aw its merit," On wlilan.e.r a. :sim.~e&mup be~ng gruv!en b~~h the ,cre~dve Md. rned.i.a. :mn.c~ilofH; is. in t.he be[[e[ :inl!'eil"~t Olfthe brmd. U. ~O\yr~j~u. Vi(ie~iP~eslidient ;;un:d. CCllIe raj Mmag,ew., JWf, ;says, ffiy~;. A:rlro:sr rihes~lWatiorn~s bettJer. tMm, if it wit'! w~d~.diffe~n~: gI)O'Up!l wh~re cQmm.uni~twcmand. ~:n'l::erac~ionsa:lm.ost i - -ct· . ;u:::. .• i[i![)t,eet A·c'~c-·c.~ ·C···J- -,i'c- - .uHec.Wlr~fP.wry .. an , ·M L.. says ~fu'" - ~~ . t .. ,a~ of the_ A'tL 'I' -.-.- , '!iVlIStll1~, .reauve nr. - " 0·" ·~I" and ,iUnfll:'" .•·• lIlt:glp._:'·b:~.. !i1!~e 1!;,J~gg~,_ ~1'ILIty __ ~

me

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,entlire seg~tl'o:n PI'OC'eS5&:as beeathe CC'e3:tiv'e ~h:iukirng precess @f the media. ag,endes., "When. :),,'0111 are .s~[dng; trlMl ag~Il1CY'ou mink "fea[~.vdYi,wihefiyrOU. m.!j),v~CHillI }1'~!Ubeg~n~o thid la:!leraUy,.P.re1!'~Oi~S~.y. me: mediaw<Ui ~n ,QOr!;sta!!U ~oudh with OUt think] nlg process ..Now [helie isa lag. ~"''''

" .TIMHind., ]1~Ly 10, .200.3. ~. SQ!~~Q~:B!I'ildg~f!g .~~ by Aj~(:;;l S.hOlshid.h.;l.t. Cat.a1y;slt" .Bu:sin.m Llu. dllg

J3rnl.1ary ~9. 20015

Copyrighted material

54 ServCces Marketing
In ch bargain. it i the rand which i uffering." ow the client has to en ure that there is coordination between th two clivi ion . At arne time the creaeiv team al 0 has co make rhar extra effort to maint in a rapport with th media team. Sometime when rh media per n d n't h re me arne a ive philo ophy it gcts a little difficult to convince him about the impact of a 40-second commercial as opp ed to - cond commercial. hi would nat happ n if the media p r n i from the me rearive gen y. " ~i in an dverri er' perspective arneer uneja Head (Marketing), Perfetti ay that while on one hand pe iali ed media agency gets better rates for the brand. me creative team do s g t divor ed from th rn dia pI n.·· adverri er we a en try to initiate c mmon meetings a a ream and debate on [he trategi • bur many irn i i not po ible. Th refore we try to peak (0 b th the ides regularly and try to inc grat th ir vi w ." Bur with the risin fragmencation of the various disciplines uneja feels that in future adverti er has to break down boundaries and get the {cam together, or d e the rand would uffi r. Howe er, mit yngle, Head (Marketing) ian Paints, eel chat th pilr i w rkin quite well or ch rand. I gues each agency is able to (; c on its core competencies quite well and i a le to deliver a good output. he role of the client is exrremely important and much of the coordination i a function of the diem' involvernenr in the whole pr c . W feel that our brand ar doing extremely well and over th y a ur brands h ve rown from trength to trength." While rh eb re on whether unbundling of services is or i not in the brand' intere t continue inn Bhagwat xe utive Director Inter ace Communications say mat chi unr t and di ruption would connnue or while rill the agencies pur in place proper y tern [0 en ure rnooth fun cloning.

me

me

0 Perspective 2.3
Bundling Insurance Products
The Tata AIG Life Insurance Company has launched a health insurance plan with life

cover, with a brand name 'Health First'. One of the unique features of this plan.
according to the company, is that a lump sum allowance is paid to the policy-holder irrespective of the actual medical expenses incurred. The plan is renewable till the age of 65 years. with premiums increasing only once In five years. The policy-holders can claim multiple claims till their lifetime cover is exhausted. In the event of the death of the policy-holder, a normal death cover is paid to his nominee. This is an example of bundling two traditionally different service products (medical insurance and life insurance) into a single service product.
ource: Busin Lin. Augu
t

14.2003

SERVICE LIFE CYCLE


Just like category constant with the a product life cy le, and the technology over a long peri d of b ic need category ervi too hay a life cycle. If we make a distinction between the service changes, we can ee that many broad ervice regori or need remain time. The technology changes have altered the product form in many cases, remaining the ame. For ample. the vid ca en rental b ine h

ohang:m, to VCDana DVO r~n:td!i.,The COR:5!UmCr sC,gmcflr.and d~c nCCld (h.oDilecnlmmnmCJ1t) r-emaiinm dle sanu:. On fh.c odlcr :hand, oolnp,letdyn~ 'SGmc:eca~glPfics~ooappear ilicguJl;uly .. f,oir iiMIl:III'I.O~~ llltl.ew" ro~ bus ,Iikle B,uisi[at 'Qw.~ky·5i and Cate: 'CoiMe DIY hlJJ,~chan,g~,~bc landsm_pc of' may ,c~(1esj' :al.d :many tndid!l){rna1lrta shops have: vlr~!l!tdny'disappearedJ, rroN.some places., Simi1arly:"thcttadidol~ ,cinemah~ls .bave'I~~cll way to .modem IDll.df.iplex:es i.nU,umJ,m.md. Ddhi" thoug~the :bouI.cfi,ef'Vtce .~Si sdU ,enren-aillmenr du:ougb [bi,1 SCliaen cin.e,n1:Ji~ Of ,eoiJtrse~ 'cheim.pact ,Qlf :~edlJD~lolY has :MOO in.C:Ji:ea&~d·3;$dte pr.oQlld ,has beeo.mc reoilnJiaUy ;5(1lphistic;,u:~d~ we~l as; scgmciIlredJ, 1'.(11 as caref'm 'the dif[~reni[ w,t:es olf !c~ncgoeif's bl. India"Amo,ng the :su.coG,umJ rdotS~OlH~ els~l, find a mood numi:I!I,!H£'of'fiI.ms w,b.ich lIav!e been suoeess6ii1 ,only im ti.e urban. aJl,eas;O'i: rthe fllmil a~~ 'Oif {he 'O'Y'CJ"S~ IM',u·ket. HOwevel~ the-Jie .e: ,only a :fcw·fiilms wbiih. oouM rr!eaIi~.y e !ctassii6cd asp~ul~lndia~,~lU~C'S. b This di,vi:sioo ,~niHe~f ~lII"afsl\ha( 'OOfiSIdl.er taSfes a;r~IQ'W mudb .mO,Fe :fmgm.cFl~Gd 1[h~Ull, be~o:fie.The drop' ll, avel:aj~ oo!levisi.o.naJlinlpoil1.tS; (TRfs)1 ofpop~uEclcvIsioD. :s:ed.alsa~sQ'~nd;mw a ,s~Dlilarmendlii.,.T,Ms prtOvld~ :annue-s fo[, miQI!o..desiped ,8ef¥.~ceproducts aimcd at sliIb",.seg,mCiRJtS:dJ:al: are iftQ~u~ng~,y diil~f,ins; in ,p,muremces&!om ach o'thQ. Th.e l!!Ili1:tfOrm. ma{fiefS qmboUsed by ·tbemw TV aJudJb::aasfilI'st.!iiak big; Uke "MalmbJJ#mfand 'lJ4m4y4n' am p.mbabl.y gone :fO(~-:eIf., .Many s:ervIoos ~t'Uing :00 mC!' basic nGem de nOif die' Ol!!l:[iO've.f a.l}oo8periml.F'olf ,e:xaum,p~lie~ c! mee&: :(or' m Sel'vii.~ Ulke,e.lecmi.cpower,pe[ro~cllm ret;ajUDG~h:os,plim!l:!l~dlllal:io.mI and, 50 o.n mnlinle fo..f .hlllnd.mi~ of ~ y~al's. Phun:k ,moine., thm:ug~ aecUt ,cuds and. ,ciebi(ca:ms :He newer' servkes r~~adv~1' bu~: !otb.j,!rb3Jnlkinl; s!ll[Viasau 'Will" old .. TeahnologicaJly, ~.eJit is ~~tif sop!hii!lticationfifiW in ,m.oo~ (!If ddtivcl:)" ~D 'tneirr' ,~U$mm,eF;S.w.~tb. ATMs~I:ac~ng ,h,1l!Im3l11i. te'Uers iJnn\la~y ,easleS:,Bu( India.~s a van 'CiDun:try~ :and.mlhc av,aila:M~i:tyofm~y .~",.~oes;in the mw 31eas ,cont~nu~: .En.. ~B ;~fadi,~l(i!lli!d.mooe-, :F'~r,e'~ple~ '~hc' !:r;aJ! , R r:e~UcfS c(!!IIfin.u.e' to 'be smiU sh.op,ssC~~ti!ll;G widl.evaF~£f ofloQds~ and. ,Sllo.o~USaft; quwrlie:fKqucn~ ifonc! a looks rolF :specific bmn.ds of goOO:s:.in..mao.y sudl ,silops. Th!l'![(,; a!~ ~I1I, som~ servl.ces w.he~: ud:mol,~gy has df;asd~., aJ:llcred~hepa'tleif'D IOf lihe KrvtCC~ or lcd b mo,its .pire:mafIJ·c:dedlne. fir.:rrim'ttl«" dl!l~mp1d, rise o:fmobile,lnlne se'wk~ hua~n!I,oSlr kUI.ed dl.e ,~gjfilG seM,ces~ whi.dh. ca:rmiefif.;ada ,s~Sfiifi:eafJl: po;-wth porendat S;~mUu~.y~mcgrowm ,gfEbe Internet as.a medli~~ Ofc!~H1Ul1iUnia:rjolil,~; OJiluseQ, a hu.~ d,ed~fiC ilil.me .n111f11b.er O,f .ifuli.vi.dullsWfji~lAg lcKCimto· each !!Inhcif. T,el~pams.,. ailong wif'b cl1eapcr long .diStance '~e1cpN.onc:semccs~ m:av,c aiI:S0~R -hit by dlc r~se ot dlC
C3:1l],

[m.bGI:.I1I.GtHO~'G£, a.

ce~~"phonGSE~lemfietw::!l baw .5I!!1w.mvro. Oil. long; dme~ ad apan fro.m~ecRno~ogy,CHgges .. Tb~ORt.ically~ W~ !C;ID ,s~msay ilhat!ihe :senoia'S :10 Ih!l)o.u,gh a Ui: ,~ im.ponatnl[ ,stagesrn '(his qdebeJng: • 1,. .Imtrod:ucti.on

0.0 not seen'll!mMf' 31.ny mftei1!~


:simH(1i1f!lO pflodruc£s, wIIIDb. ' the

2" Gro'WIlh (fo'r" :succm&d.:retvIce inrl'oducdofts)1 '.Uat~urityolrDt~u3:t~OI..a__nd 4. Dtcl~~ne Th.e ifUii.v.idtlalse:"~ce ~o.mp.anliesand "if¥lcebiF3ncb un :s:t:iU be~mt &om u. malrsu of {heir past nd poodia~o,nsall)(un&uIURGt!IlMh po~c.nialin dle£!tawtiolnail for,mat C!f a I.~(e,cydl; CiIH'W'.How~.r, MMIf
ooic s:ervicG(alcgoriel!llIe here
~!O simy

:for a~oimger pel~cd ·of Ijme~

Copyrighted material

T!hOUlh ih.e .5.ubjl~c( ,ofmJ~ .lli.n,it: visibah:y has been discussed i!l1. d~[a~l of

j.o

i1i!h~b:[!ll:f ~se'OtiQ11I!s.aID, i~c[!oduaruo.n.

~:!i necess:ary here. GerH!il'3!Uy~ ehere ·a!feareas ~n m~:nys~rvjre b~s~Qe!lSiest.1il:at;JJ!fie open and vJs,~b~eio t ,Cl!!llHlOmel'S (Uke· fm:nlt ii)fiia!of~. bankJd:ile' :reQep[~.()n ofaho~:em, era .Fe.srnlll,[a~u·s servin,g1euing area).

Eh!!lt ehere am i.n.v~~~dMeaJr'easin The .serv~cef:ac~ory wh ~ch.re'ma~nawar f.ro;ma CUSi(Omer's ,gaze (:Iii' betLWndl.tihe ~jne of'vi:s.i.billity. The f~~lIlt ()(maesJ3ir'~as.d]jar<arevis~ble need. Ir~be de.stgr1!edkeepin,8 LhJC OUScQmer needs in mifld~ and. back. o.mcessh.Gu1d be .d.es~gnEldm !keep rhe ~mplo~1!SClomr(i!:r[l'!ilbleana.effid en.dy use the

rne

avaIlalb,le

!re.'SO'UI·Oes

i,A.~luing spaiOe',

D:esiilll1!iin,gthie FlfDnt Oftice,: 'The Tangibles

MnC3J,Sehe servia! has s~pi6cili!l~elemeaes IthaJt t are Itllngib,te (d~.<ltcah. be' s~e~~ l()uJ:ihed. e!l(per~en(ied by dlec~'OOmed, fhey need w, be dedgrned wJtlhcare
j•

Ibec:auseth!e:y ,can create hnpms~on.$ iii) OOs~o'llnefs' m.~nd!s :abou.t t'hequaHry

of the servioe. A po~i~f11,ll~

~m.p'~S:!l,ioncamgpa ~,onl way in creaf.i.ng fitvou.rab~e bmnd. e.quiqr for ~he service' brand, SO.IiiIU~ cOlmpan~es l ~ike McDli)I.n;aJd~s in. d\te USan.d.~CICI B,ank ~11JJ In~iHa.lla:v~ gOOfillooa 10:[ fr·om a. s.mMtand. COIt'llSii1feilt I!~o:k: . (b:r~llil.ewf;bUlilcUng$I' logps <tfild.tClrhcr vlslble e~em.e.nu ·of Ilhe'piffiduC:iI:.

IDesiilli1 in.g t!he Bacik Offi:cel;Th:e Intangi.l!es,eeJhiml.dth~


l

line ·{If visilbiHlt}r, ·the C!Js~~\m,e[mn~y !!J!O~ be presei!lr. 8!!!!t 'MO' rhinp;ml.!ih ttMs an eql!!laUy ai:cwcaJ~ area fOlr diCSi:p~ 1. T.he customer ,ClH] see rhe ,e"ocl: of d~!ea:,~iYirybehind the scene .in :5Ot.me ofrh.eo'U!tpu[

.2. The employees wh.o work in b~t'k ciffioen~dl))o' he:eom'ormble as wdi. ·aJ~m'otl~~ed . F!i)[ thes'eNfo Irea;sow the: back offi~ 1011' back end ()perarions ofa servruct'!need ,a~efl!ll p.~anninga:fi& de:si1JYll.. SO'I'[u:~i.mes", Ime' i.mp:U::1r or,an ~.n:hyg~enick~Tl(:hem a bovell(du: b~(:1k e.nd) ,c:all be ma.skiedl by ~I)d in mo:m sewic:c', bun if a d!!s£ome!f g~u 31J1 UpSlet soom~lclhthe next morning~ he w.ou~d.IUess thal tile rood
j•

me

:Se'.rv~d. iM;l!IIlihYigii!'.!n~.c. In mam.y moderm. se:rvio~ l~kletbe 'caJI~ W loaliltres~ '[be b~ck ~liId. o~rnltio:l1Is IL~b: d::.ll:ta ~111 a:bOililt aCWf;om.er are 'Q.Uif:e app3JWtlt' w.he~ ~. c~mme'l is: ·CH;~ ,t:aTh:lng m ::lIO IOpel['a:~oI'. If th~ .HD:e o,e;~!f;Gf dOd n'(il~haveaocas 1f,(iI his:~orwc~.da~aabo!!i.I:t cml1om~t~ hlil: eald :ask ~:hecust(H1Ur tom:peat· mat a w i:nforrnad,on. thus cfeiliting ai, nega:tfve ,inlprcnioln. The b;.!Jok ,offioe may inciudle h!l!lman endeavolu~ ,or~chno.~olY ()Ir a.camhinaeien of these a¥o,. Howe;v,el',
~t!i; WD1lpi31£i[O.fiI!ih~

fm·:tu ()·ffi.Cl€ can be .:!ll!Jlb1iintnd;1~ at

dOles

.. Even

If his

not"

t.h.c·n!eedlfQ.iVemp~ofeemothr~t~on

rsho~ld Ibe kept ~n m~nd.w.h~iedesigning ~be b;;tdk ,a.ffiQes. S:ERVICE ID,ESIGINI: A. GEi:N&RAL,FRAIMliW·OI.K
BM:~d!. a.l!o[ (lif wml3i.1t.AT,&".T"Fto!hir Raml<llSllV;3J:t:mlyhasPllOpo'scd a d~l,grnfqmew,ork fO.F serv~~;whkh 0'.11. oomi~l!sof e~ghts[a.~. wnd.lUmnrl; a.f~:dIback SE3!g.e" ,lIO :i.mp~ove the d.esigned .S!eIrV.~ce The rn:easo,m.(Qf thb .is .. thaI!::eVI'!l:rruifr~u. hacv,e the perrf-ec[ service d!es~gn. at a.gjven po~nr[ ~n time; hmSlY gel ou{:d~f~d and
tm:n~:.l!tis&.ctory 'w~m IPas:;sa:I~ ,of[~m~" because a,fchanges in CUSlJomelf carsvru. ThefJeifor-e!r dl!e wdm~!t-e~esc olf .s~ioe d.eswg)lli ,Cii.l8i1:oOic:r ~:!l sa:dsfnct~~n. h1~~redon:a regLdai! basis. Rama~mf"s f[:a.mewClrlk :f(!!f se'nriQe

desi~rus pfesentedbelow.
Sta,ps ~. ['04 :in,cluck-:: 1. Denn!i~'gde~i.gfl a:udb~ues; :2. S'~£~.in.Gd!~8ign per.fol"mancc iSmnda~ds 3.. Genef;3:Ewfr!lg;amd eva1uadng: ,de.sj'gnoonCfpES

4,.. Develo'1:ling dJ~~gm. d~tri~s

Copyrighted material

T~e:firs!tliime dC5il;m is oone im, ~heg<4 rsta;ga.


II [nthe Uie-:rtt 4; sm,~:1 dte setvia :is;actllld~y ddiv<:il"eJd" f~'Steda;lld Iba~ed!' sa~i.sfa,thllnwidDi ~aatr en u·~bl;.l~~.s ,off~rures,,~f. QQuM be' modifiied~o i_rnlP'rov~ perfo,rman,(le" These :5'rnl,.e5 im:duew:: 5., [mp,le:rnnend.ng design ,6. Measuring; performance 7. Assessing sadsfacltiol!J

me

8. Impmving pel'{oIn1ImCil!
t.he design pr'OCe51i ~s ~.oondnuou:s: q;elean.dI. it i!.lvQlv~t\'I!'o' kq :m(;!t~~s: (aj feedtback fKlm ,caoomers: and 0,,)' redesJln Cif service. The desimn chanl~;a.re u,s;ually due wch.an.GCs in ,cusw.mer tastes, l1echno:togr et(.'" A.ooof:>d:ing to Ram~m.y~

D'P',erS'peCti,Ye2.,
'Con,ee;pt, ,SeIIUin:gl:The Ca:se of Alilr2Web
QUt.

Ahr,2:Web !sol~dI :service IP:rroalllot, tililat, was, DOlin a

ofconver:genoe!~ecilllno~ioQ.~es. 1ih,e wire!less 'alPipliioatiQns suoh as the IMobUe phene, 'th>E!: hlltemet. andtraciitionall cmi:ernts such as bamlbi!, pharma, oompa nies ,andi ,almoslt anyone ,else who w,ani~~d oomlmulf1!i:oa~e 'ttl,

with l1eir oustomers orsal~esforoe formed different :p:arts,of'a. comp~ex jligeSBW IPuuIDe
~ha.twas, pr-ovidedl by Air.2W'eb ..T1he!rClompany hadto sell~firsttlile concelpt.~he'n~ts own relapabUiitY'k)IP:ravtde~he!t'ecl!uloh:lgy badkoomie which wOI~lld ,elnlab~esay. ,a,Ibank, to :serrlrl an ·S!MS, ana customer's, mo:IJUeIphone to linfomm Ihim tha~ a d:aposir~iiJladbeefil ,oredited to ImlS Ibank. savingls ,a:oootJInt Or,. a cement. oom:pany tliilat. wa!l1tedwl ill'lliforml ~~s deuJller ~hat: an oro€ltrlPllaced by' him had beenchr.ls!pa,tdhed~ incdudi:ng~hetruok':s Ir'egi$~raU(ln rJulmber .. iiheSJe.3l1i1rl ma:ny oU'uar aIP;pUeation,s ,coUlI:dllbe,ao:ne! wi,tlnout ~he! dli:elill'~I('he! ban'k or the C€lmemrt oomparlY) haJYiing to, jinlvEist lin ~al~dfw,are~sO'Hwar-e nd inI1!B!j:or liT te:cihnolog.,. AU a they had to, do 'wastelll Ai~2Web what sort ofcomrnunioaio~s· they needed wiU~lw~omt and I'dr2We!b woulid pfovi:diatliilesol u~iollil. Tlhe!dtrJal~ges Il:r U,iiS! serY1ice (IProviided~hFO~gh a server' and oonnecIJiliilg Ihardw,are ane softw:alie') weril! ,of'two types .. 01'119, afi!l<!edi c1halr'gI€I, amj the' :seeQ:nd. ral ,e:t'rIarg:e basedl,oll'il us-a:ge .. IlniitiaUiy.,it tco:k; a Ilat of efto:11 to 'co:~vilnee tihe'first. 'few ,c~lienits,tl1lat.it. w,a,S;J1 9:ood idea .~ o'utso'Ulfoel1e, liTliitty..g,nitt, ,of ge"hrng '~he,sedon,e to an o:utsh1eli'" bUl~the s:peci'alised lilIatuliiel olfths Job. oolt1llb'ilmed wi®h the cu,flsnt u6ndtow.a,ros 'GUllsoUir~iflg ttrle tas!ks 'outsidel '~ihel

oompa!ny's,oor,e oo:mpetenOEl:' araas ha!lped Aill'.2:Web ,e.s~a,bUslhaJ liead~rilgposil~oni'n,~he defined IProduct space lin a shan ·~ime.

:SERVI'CE QUAilrTY: MO:DELS


professors3:r

TiN IE:PAJRASURAMIANI.

BIE'RRY.ANID' ZIEITHAML

A lot 0:£ wDrrlk has been done hy d:lI[ooprominenn mmiwflnm d:dhkef~P~rasuf3Jma__n. Zek_Ra_oo., and Berry.
vaeious An!i.eriC3i1ill bu:sines-.s schoob, w bl:1i~d a conol'i;pnl;a1 medel 1ilfS:~N~Geql!1!al~ty!. evd!@!p'a d

Copyrighted m aterial

q,u:e.sdonna~t'e caUGa SE:RV'QUAl.., 'whim, m.eH!iiI,msth.esew~a: qu;dity~ la_nod ro blilliM..~..m,ode~ ror siho.nfaiU .. in ,s.e~,lO~ quaJi:tycalllM1, clJ!ll: 'Gaps Modet TMs~cdOo,n iis devO:~Gd(~ adisc!i!!:ssiOL~ Og m~ w@~kdo'me by mese dl~ Ifes~ch,e~s~ :a:5: it lo[,msan im,poftln:£pm Oif dI.e Ul'!tU:at!l!!.R:'GD:ieorvlee~ma:rkedn,g. Tib~[b~ OlI!.!l!tJ\i,ofS: coA~:Cll1d malt: [he ,cmmm.« liS! tbll';bes~ J t!ldteof senioo qruIHtya:nd.dlewr j !!iIdgement ls ba:Jed onl DiI !id(;j pile Gc£orn •.htl.rhe case ,ofplUll1ieseli"Vices~ seevi.ce 'Cliuatiityisa .maj'(II![llieDl.e'nlt in, Ih.e (lUSfO,mer's: GValluadon !pliOC~-SS:. Fo" ex:amlP~e~ a patie~u lIlilldef"oing,aSll£i~ry O1I:ay e:v:a!h!l<l:tedJ.,e :S~1'V.ioe,quality hw:ed on :h.ow ihy,gicnic [he:::,(I:pemdolli ,thane was", me! 11:!It~hayIo:r ~h~ d!octo(~au, ll:I!.!I£SI~"h'lpan: U,O:IB dlJe success ,of of 'Eke su~ge_ry'.Se.N~'~ IquaUtybemmes a, ,C!mdal ~~.e:m~nrt!!veltl.wh~n.a physk3i~prod!lil~[ is oB"~rrl~. 'Ylim, ' Cl!.!ltim.mi!lI.~JI" st:rV:i~ • .1\, ,CI![:Stome11'M3!:' ev;a~ua£~ ,an alj'to:mob~~e ·dHler: pCl!5it~vdJwn.en me dealer pr,omptiy sendls: r~ft1il1I.dets wl1cn.thc sewia ,of the 'vehicle is: d!iJJe.• In til:eb ~.y :~e.h ifi!!iO' :$eiNl~ q,Y!~h¥~Ithey idendfi~~e;Q 'crt~:e:ri;3( thafi (:'fiSO(:U:ne:rs rce1y 'On w.h~l.e

cv;;d,uadng thc:scwiec: ''lIUQ!Ury. These ine:h.ulc: I, Re1i3ib~l~ty~ ThIs: ism!J:a:~edto dl<t aMli,ty ~ora:s~"1oe p1'o'V,id~r m perform w'hlrev,er'was p:romised. 2... A.oeess:W\cthcl'dtic SC'.t'V.toc jSt:a'Sf or d~m.aJ~t toaa;.ess., .For ,exampJ!e~ the:·ea,e ,of ge[idng3J. d!Qotor1s: appt1lln:~meB'r or dletypkil! lengthoif a! 'queue at a ,sn.o.p:iS ,ch~kewl OOlluutrs. j. S~t!ii~:ty,i'Thi.5:,p(limiru:~o, mllw :sak a ,cttSmm.e;r reels 'w&He ac:c:essin;g the ,~rvh:ie~S<1!.y~wimdi!l'awing money ffom an ATM. 4. C1iedilb:~H!!Jl'~ tfW!m'onbJ is: ih.e .sel"VkepmvJd~r~ appa~ndy? H(!Iwgpod is bis wo.r;d, ,on de~iv~ry How ,d!a£u~ fOf .~ns[aillee~ . 5,. D'.c;,g)l'lee!l)(f C!USEORlCr undef5rmdh~_g: Hor'.,v'mDucn does tan Qrganizadon do m ny ,and U!ndcftltand .wts ,c.!l.tS:rome:m~ 6. hsponst'v~Fi!t!H: How wiUi.ng iSEihe service pr:oV'.idefor .~ts ,peo'p1!e m h~i.p ,c.'tOrnl~w:iifh,dte!r p.mbJ!ems :and pri.orides~' i., COM!pt'llCIiCC: ru,e the ,sl!:JifcomlPe~~D!~ do, m.eiiE'jol!ls~' 0[" d~s 'tM~bi1t1G, .F1Ili:1clhm.e m.echan.~.(; 1:0
Ippcaflf,O be mw

ad!. UDtsjn:ei?

,8,. CO'!nw'f~ This is a.me3iSUli~ of ro.IDn1IDn col!.lli'iMSy o.r:po~b~n~s :~nbehaviior 9',.T:anlibl~!: TheappeaOllcc of the: p.hysJcd. faci~hiies :anddtcpeo,ple~ :as:w,e~~. my erher DlQlIJe:ri;a]S as il~b sta~lon!!ry~, bfOChltKS~ visidag; cuds:" Cite. ronn the ragiMcs urocia«:d. wima, scm&eprovlde:r. [if mcan.'icl.ce is f1ioll.r~ght) :I,cwto,mcr :l1irI:ay f(!l,luna,simiit. ,~m;pIlessi.lIl)bibollJ.t ,th~rompaof"s ~ftio!l'; qlla~j,gr., 10,.. C(lllmtmicu~.OD: How' Wl~~ d~£h!l! ,olfl,a~rion oo.mmnmn~ca:~ewi!ibth,ec!!l:!i'tnme:f~' CW tODil¢1CS eval!!Il;u:cb~tb: .wl![tin.e:and :1iI.0.:rrout~ne a:!!M!lliI.llullicafJon. Latt,r dtelpm~ dtudJ.ese [0 ,cr.~reria,Qo,UlIDdJ 'be fu:tt:htr' rcdllad. :iinro&w! ~W[.sj imd :tB~Y :~~Btm~,
a,
i

i[h,~~ :f.t~OOIi ss

:~• TangiMes: . ,4. &S!ilf~ 5,. Em:pad\ty


1. ReUabUiey J. ~,oMiVe!l1w

Copyrighted material

OOmpe'lien.;ee. oouneq~ crc:di,bHity amd. ~w.iiqrJ whr~e 'empalti" w~,dudedil!aecSs. !W.d,C'r,sltoodiil1lgllhc oosl.\o',mc:~"sp(lint ,(1If vi!~. M:QiS[ of ,the r,es~~:r,chth;a~foUo;w,ed ParasUfaOllM" Zc1.(haml,a:nd ,Beuy uses, these :fi:ve f.actors Of cd~ed;,ii,fQr cll!ls~omJer ev;,druarion 'of :seifVio~ quaUlj,.
&;sIUl['lJ!nc'emem't rogLlJ!!unjGl:t~on ~d,

Aoo~her impormnl[ ,ooDrFiburion of CRest; duee researchers ,~theabonforr,m~,dili 1)0. ,pm a v,aJ:ue Oil, ~he ,cl!.t!iro,mer's~ilJd~linenr Cif s'erv:ioeq:uaUty, They ,rop'Gs:edrha;[ rhe cW:l!omJ!us have :at armin ,mpeCU!itfO:n of serviceq ualh:ywtdie go~n,g: hUlO :1 service u,arua,ct~o\n,and !they ,oomp~:re (he' oorua), ,ex!pef.ienoe (peilieeptw.of~) with ill ro M![~\i'eU i;l!oo,ulhing ~atdsfacdolml ,or d~s~tis&CJ[ion wwith dles~lVi~'e. Ob¥~@I~1f' :3, per€eprion of se~ice above tbdr expea31~ofip1lodil1o~sat~s(ac[ion~whiile a perce,~iQn bdow rhe expeoted ..~e:vel :l\oduoes p dissa:dsfatdofi .. In th.evlew of [M~ aJ.u~hOIIr, a. s,imp~e[!o !iul:de:rscand 'ViershJiInOif meir fCIil'DuJla can be wri!UtiDi as "'~liOM:

The inlterp're!mdon .of ~hi:s .Rma~ns the iSmJ!e! th;;[[ is, jf the ,eKpecl1ed,rervtce :&Jlssh,on of wila[ ,h,e CUiSm,IITIUlr !!h~JlIbhe has ~ived. ibis samfuotio,rn is ~ow.!frece~v'oo, sew~!ce is beuerth.an 'extpec~ed. his saJtisfa.cdon teve~ wou)Jd be Mgh.
U!!l,iflldlis fnl1l1llllb~ d:l!:~ researchers deve~(I~pe~a 'queslL'i(!lnna~re ro meilSIJft:: serelce ,qua!Hryapins~ rheiir
!l)W.n

expectations. The

CUSII:i:),.mer'"

,expe'tadl)fI:~ eouM. b~ b!'Uled!~n var~oiml£il'~IlQrs

Uke

1. Wo,rd. of mouthoo.m.m.unh:adofiS, &lQlm :&ieI1ids Oil' a.cqlLJaint.=!llllc'eS 2. Per:;o.n:al .mr!"ds:0'11' p'FCfeil:ienoCes >®fthe cusromer . 3. Prulll !CXFf1e~rCe of ~h.e:plrov;der~s sen'~.c:e

4. &rer\ll~. communlmdo.f.l o.r adven:isin,g by d~~,mv1d:e:r


This qgestiomruaire Wa!S caned S:ERVQUAl imJdit W3~ used by. seve:rnJ.reseaeehers in t_ne U,S'IIDO' 5t~dy rerv.i()e qu;dity ~nawide"!!~~,c:;ty <of serv~ceo~g.al!ilimtiow.~[ conslsted oif ffl!etil'[frmo qlll!estio:ns spooa.d ov<:'.r five qliJ;ali[)" .d~mef}\'i,~onsthat WII.': saw ,eariie!l:', In mf!.d~aJ, not maJ!f!JYsnld~es har:vedocJUm.C'J:1itled, ,s~.~.a 'qUl~,ty .in d!HJe:rent.~ndwu1es in I[h.e pubUc d'om~in,~ apart from crusmmer sa!tismO[~Oili} snlmes; d.o.neby oo,.m"an~es for th.eir own 'Use. The SE"RVCtUAL 'q:uestionmdfe~s av,a~]able i.l!il. m,ebook D~/ivering ,Qu:liIJ S'l.1'11it.t by' Z~~th.am~li· ,Pan;s~;H:afOCH!!i!la~dl Berry. the fr·eePfJet;s. N~ Y,oril!t 1990. w~ .i~h.l'!itraJJt:e fbeee of

me

S.ERVQUAl thw~~ du:

two'

eases ~t (he en~ .of dtis ehapter,

IMana,iinl EXpectit~i:QlIs
One OIf rhe prcominl!lnt u:sut!\'S :f~d by aU ~e!rviC¢:comranies iSliomanage th,e ,el!l~!IlD.me~e:xp~toui'oIllS"b~us!l: :service fJereiv.edlsccmpared Wihl1i[ was expeotcd,wbile al',rwvwng Ole a jud~rnenE or' pettOe,prioR ,oif iSl1!tislartion .. The l1ilar:b:t~:r·,sd~i.emm<li.is;t.hu' if he pW1oc'-hesh~g~> ("-ttatifig hi'gh txpeCudofis~ [he.1'lt wO!u]d, be ;1 IikdwhoH. d:lIa!the may nOlt meet Ithem,!, and leave the ClU1t(lmei'UJfiilap]J;y" Howev1e:r,if he .p'hcll:tes;lOa, ~.O'W,. the ,fEmmer .mai,¥,n,Q[try his serviee .3:t: all UkeIn0li1R,o[ get a!ft[actedi. enolugh Ito!i(. l1u:re .is ,aAne b3imooce . 'L JIl. L _. ~L':L.' ld t, ".~~ .' ..' 1 II" !:m . .J: • .. 'I.e" ... , __ , " Deotwoen nype a_n~ su!w;taJl'~ W!~t 'mesecvtot PfcOVi rers.n.GWCl miUnrnU1. wRI!IIIe ~[1J;Oirmml ras lM,u~t~n:G, Itl:Ort:.

w~m

II_

Copyrighted material

I,.. 2.9 100,'rur ,'ndirj!idua/'G~


Sh~ii'ii aJbove riSlLtile GlSipS, Mod~lofIPrjjfa'5il.tr'a.aWlI.

in S:erviCi-eOOC1Dming trotne GapsMotJm


'~1101!ifl1 '~hle'OI!iigma'~.

iiS'me SiI.t!1i ,0' ,a~l!lIi'lMe"tLim IGap' betweenl Elpootalil)}n!l!l!i'!d IPeIlOOi¥edS.ef\li~e ~lir.mIiJ,' '
1

8Eii'ifJ s.nd leilhi8:I1i!II(adap.t.OO

111he ,ov,er,aIDI,GiSip I

ne:tb~rdl impo'lmnr ooomlbuDon ,ofP:amsuraman Zc1dtJJnd and, Deny bu bCCDJdtcir' G,a'i!lmodC'l~ wh~.dh p.iPo~nts Ie_O'GS whrfhc ~enri(leq;l-al~JlJilla sendoe C(lIInJPUJ .may FaiU !ibOil't,olf what is; ,expecfied bya. ,CMIlIlBilJe,f,. Tms is: ,disc.s~.llwlow.

,GAl, lane: CUI:lomer!.lIecl.lions~Se"liice

~pedaii.ns;

,As ,~wd~ilJillll ~eJaflw: 'OOiH,ccPl.


. 'T'lh. ~ ·"11

Compan'r'sUlndlerst.ndin,.ef 'chese: a scma: lirllmaynot d\WJys: unGefSmad. wh3JJ[ remm


iI~

,eOIJi_a~R ~u;g~'q~~il1lil) 'OOlfllSU1bt«S.


,OtlRcSIlfI1I1C\l"

ti.::: 'lh

".".~.II'· .

,COl1Slilmcr,s:.J! flle~u •. 8 .~ru:IIf.0 _.IIU1~.e[f&taftQ:ln8,may ;a;~,ea: qruw'typt.roep[UlncS: '


~,I"..

r- .

£11".,

~II~ .

.•

,£11_'

f'-

C. l w,iiI .harve oUlI.imp.wtl'Jll. tbtl '~~"Ii!ti(!lb II);f~i~~~iq,. If dte.__~ DO' g3J~' ~c: m:u~ms i~ ,~-pmaIiIlOiI. and ~rvi.a"fim ·sllfI:l!d.ers'ta_ndiill:g ofdlese ,e:x-peotat~o!lils3ll[\cmadli.lD;g., If mlc ma_R!lgcDlCmt '0[£ ;1~n.cma,.eatR ibe~ii.e\1its.a~ aU ~£ n.ecM ~s:19~odi.tnoyre5:,iJiod no, an'CnJdoli.~o decol deanUn:ss: land 'iO' 1P\."ood'OOimltm~.i()fmdilet!l_n1F~~fte.sj' hr mm".. lose (Iur 'O!n.l. lOlr ,o:f.Q:IiS~omer,s. who wou!1d ,db1~~kc .; 'the till ~'eqJe[i.eJnLee» of dirty ~: :aod.• s~es,mwd1,queues3JJtbookjjDjg (l(1UnftB -d wruim~.~lmJti,eiD.tJer1oD[llr a lad: ·of'air mfild~dQn1n:,g imMeth.e: :h.alt
J ,ii'

Copyrighted material

GAP Two: Se"ice C•• pany's Und,!eNtandin:g'of Cu,sta.er Expectations-Til:. StandardsSel Ib, the Compan, The st.ulIdMIWi tha:ta ,OOImP_Y sets may (aiU .ShDlft !l)if wha~: dll~
be~i:e.Vie&;aretn.e cu'Sr:Oln~erItlli:pe.ct:nio[ils (wihi,cill. \V,e :saw in. G:Jp 1():l'iIe, could thI!QiI:se~,V'esbe ifioon~cdyUindle:rs~)Oodl).l'hw~ ceald be beeanse fh.~ hj.g$ler ,Cl!.Is·tome[ l!!Xpecta:tio:f:ll!S {accol[dinS ~o mil!! mD1lp3i!lliy}:,!!id\t~.1i C3:IilUiI.'1U .merby the comp:1li1ll!Y, c..1i' rh.e (~Imlpa~y dees ~lJl'!lil:'W31iIt[ t() tli')' :nl:eetW11Iigmem. be ThereMre, it inlay set lower smndilJJr!d'of servlice.Kinolw,ledge' of cnnSUinle:f' expecJtadon may exis~' bUI[:'the expec1ta:twn may not !be d~~ivenb~.ebecause olf :resource. constll'ain:ts, marbt c1i)nd~t~ons. afill.!Jar
OOlMpi~Ull.y

managemen:t ~ndHu:renoe,

GAP Three!.: Tihe Stan,dardisset Iby 'he 'Co:m,aflry- ThelActulallDel:iiYery h;: :i~ g~, ,the bc,moc;fll. the S'lndaliWs se;[ byth.e co,mpalrly 3)!I1dthe actual ,del.~v,ery. E~fDI rtbolllJh ~hc :Sf.M'lldards 3:1fe se[ by .
theoom,pany :In.anage:me~u~there mal.}!' sh.oln:faU.s in ac.tual, delWvlery Ibec:a:useof ~a.c!k be 'Of[l;a~ne.dpeop~.eJor a .htck ~fp~(lipeFawafien.ess ,ofth.eIrrr w~e inrewke deU.v;eryj .of a. ~ac'kof supeW~S~Ofi~ead~llIg IrQ Im:nUR'ellence.

GAP IPour: Tihe .Actuall Dreliv,elry-Exte,maJl Communicadanl


aerusl

h: isthe g,3lp be~:n

mh.:

de~jveryand ,e~~eifn31~commUfiic3Jldollil. Gap fOIil.r IOCCUrs because rth~ oof:ili}p:any :m,ary prolfll~se someihing LQ iu im,ruJCi[or leJC-p~idf ,oommunkaJdons wildt the'cUStOme'lS" bur Ide:I.~\fieryllay no,cmrufdl il[• .sCime~lmes. w.h.en.m~kerin:gan,d servlee d~Uv,ef.Y d:ep!ltttmeofJ!l <lifefio[W~Il'.ldlilg~n tall'u:ffi:!!:w'm~sc;JJn b.p~l1I. t
O]::lIimin,Glio de1ivlli!f moreman.lrheact~ but lower petr(!epl[~on of <iJUalilry wb.en tlhe Idienver~MeservicemaJy

gell in~d3)~ interest

fro'.m

rneconsumet'

,dawms a~e nCiI: ~lfiined.

G"P'I,:The
§.ap' be~npct~e~v,ed,

Oy,eralllGa:p 'The

G,:ap~u~dn.gfrom (ttceiv,~d)iUl,d expeci!::!!:d service.

me ajboly,e:~I:.u:ga:ps has becnl!er.llnca rn.e ,o;,v,cfaU

in .:oildel'i!:J::!' pr..ovide ·e..xceUelfi[ sewj!ceqUia!l~tyfirnls ihfiuld. stf~v,e 1:0 d!Dse th.e 9.3.P& ~fi lP\p$ model 'Ga:p one sn(!l~1d be dCl5ed first. This :pp dI.epWOUi~lhe d~ff<:.renoe betweein cml.1ome.F Icxpoctaflion a.d!. cOOilipOlimy i!l.1n.def.!itMldi~S' To. elose rh~s pp a service ,~ompHtf :sbOil:.!lld uYEiC! und!.e[.nu.dl rus~'OniI.~.F e::1q;lc((adoliil\'l w·eU, I~ can Ib~achiev~d by ,dG~:ngrdevali!l~mafke~res~ar'Cb~ ge,tdngfeedb>ack nom Qifl'c'S (!I'WOI sraff wino, inteeact Mth. C:iWi~Dmers~h,y ,iving im.pon:ancer:o wham:rhe ,cu:srom.eil' is Scayin;s as !t~de~.ii.v,ery h~ppe~:s.and con:oentf.a~in~ ~he way ~,t~S ddivl!lI)oo .. lQ_ukk and efficiie,rnif S~M.G'C ~~qr. en If :fea:sib1,e I(~f

an

me

dll.e::$'taff is ,em,owfled

10'

,d.o ,5:0) .may alsoheJp'

to' close chis gap wWleR b: arises .. fOil: examp~e,


~~I 1

,ClUlfomef;S

may expe.ct o,v:e[ba~ing OIftht':~r cred~[ eard ;3:COOUWU be imm~dja:tle:l1:[·ec~~fledDOI~n.g \50 !Qmj, d,o~ rh.eFlP .. in a iPard(;y~ar caseemer's case. Bl!nfol the~gap' to be cl:i)5ioo. sys~emaJJticail).y~lle,a:!iO!mls· ,i)~dJiIliIll5:showd ~o:r be u·;aa:dand.eHminal!ed. 'fhrus wonid:resml illll. ~he le'Xpoct:nion O!r "C01f1i~CEbi~Hn,g~~ 'be .mer. ItO ,Cap nvo~ ~ich ~stbegap, bc['il!l!'tle.n c();mpanyj stmde·.rs:tanding and sturndillrru set by the oomp3nYt ,caFIbe d0800, ~frhe service design ~s deaF" sys~'Cma[h;:andcaseomer ofwenwd. Gap. (\!VIO eannerbe ,dm:sed if the pb.y.sicaJ ev.ide:llte aspect ,of serviee 'Gluaillhy ~s ignored. CUis~Ome[-:s gJ.1J'C lo( of impo:rt.afia (:0 me amblenoe 31. of the se'wiQ!!loa;ttol1l. ·even though the s~:rv.ke ~l5~~f ma.y !be ~ntalllgiM~. D~~gn canalse :imIPf;IDVIC!: over a ,period (!If time. :as. it ha,p'pened in me'c.~ ilJf ~he Rdj;anGe eell phone :se:rvioe:. whim. sm:n-ed O!J:t wi:ch too ex~l1Isj.ve a [package,. b!ll.Ii:i1ifi3!!11y~m!e Oi.IlI.eI·' ehe hJlwest cost serv.toes; ''0:.1' lIl!ew CUi:SUHilJler.-l,. ( Gapl 'rhree~s: Ithe dHteflence betw'een sro:ndowds set by d'leoomp~ny and. deUv,ery. Recru1dn,g empl!Dyees wiho, .have dille ris....s!JtiWil. and a.ttitllJld.e:(or a. Job ~s e1i~[ltial in clo!dng thisgllJII. Em.p,lD}l'ees should be dear 1i: sets: a:boU'[[he ~ob speci6cooons. Tlse se"~cecomptanysb.orudd st.dvc 100 main:li1limJ. a. standa:rtd .mrvioe ,quoJJ~1l)'

Copyrighted material

across ,diffeRDm: tnnsacrions ud. dJi~ent ,$~tuadli!lm:!i. h.e il:!US~ORli!t[3Ji1'l:o, a :m~e '~op~ly~n dosil!1Lg miis T bas :pp. Tile cm;~Ome.r hall: (cOlK ,efftcie:IEifiprovidin,g iilU[(11= demUs :and .h;u£(i' perfQfm~ds pm' weD to ~t dlt b~l,d,div,ery ~eill~f dtc compaIJJyis pmv.i~iftg good SCfVj.Uql~UtyGap :foI!J,[ ,can be eJlosGdby :n,otp',ro.mils~n:g g!i1ld~l~v·ei!:'~b,le qltal!iili)t thw!!l:,gm 'ChCQO'nlPa!!!l!Y"SC':Ul:!fDaJl, ,oDmmJ1]niClt~oRSJ' ~.C.IIdilMug\had,¥:enisimg er an" orh.el' p:r,omouon.aJ, rooJ_:s.Cm~me!rs may .be] diss3Jri1ifrad when~c: <'ie:N,to!: jrlil,dil!1 p1iom~S'ed,m:fQulb d!t~ pllOmQlions ,m.sb~iIli :s:ulP~r.ior rand m~aJc'tuaj d!~~ivcilJfW!fDS q
,out~o' beioferio[ :~O' iil,epljoJiDis~., May ,senri£ep.wvi.u:nwly o.mpoo,misiDI th.e: moonj.m.d c.o.m.e up s!b:o:tt d 'O,1i!,deJ!i.v1ef)'. This: l~ndenCf ,bas:m< bell!l~m:ilGd agaiRS't. Gap 6v~ ,doses ~~lfwl~.e.n me rlif~tfo:ul' pps:3!!I'1;d~5~d. The (luRl'Yib,tive 'effO'm~n dosing: ~p:s 'one~K!'

fOUlr' :ue: 'tlhe~dOre Ithekey'

1[-('1

:5;U'05'iU~ ,deJiv1t'ff of quality sewice:,

Cm'110m~~iP~CI

!kindl.

or

le1!l'~l,of qQ~i9' f-wm ev,ery Itr.ms~u:nion. Irt~sve.ry 'CS;SCI:(iruIlO ~ftd.emtatui whit !Standia!lid dlliteUl~Ii;o..m.ert.as: ~liI,ndn.d!. a!bO!i.l1t se'N,ic:e."s nd. ,~ow he forDllJ1:Ji[;u:e~h.estl sm:n.dalds.
armin
a,

Cw.t(i!mers ,oomp;n;~dteacmatll. S!!lI:Via: dfl~i,v~redl al~s[ dt!eirrs~:rvice ex~C-mti(li,nS~ CUSIOllin!l!JI: ex~ta:rions ·aaas a be.ncill.m31fk .a,ga~OSE hid1,senrl~ w ,quality' can, :be:ass~ed A s~irul. sl!ll:vi~ ,oompm)" stf:l~li()

ilII.a~.chort'x'Ue.d. CU~f0!lifiefCXpec!m;riCiililti. T.h.~R aIDe ,dJfff.l!cntIev,~l:s: of~PlGcrnth.'l,(!Is. Aoooid.iin.g ee Teas, ~IDesiil"cd Se[Vi&e~ slicm;s f{,om ,R~gbast ,e:xpeCE;liJt10mS se.WKe qraa~JiCf' Fo.1I: ,of examp~.~ s'tllldieillb wino, jio:,io;), bigh [aabdB .. ch(!lol,~~Ehc' S ,sciwol, ltD ,ha¥c :liClho:l~a~lfRoul.tflli OI:Hf~.Cju.bJjlllditiilt imp,mns d:l:e~r ,oompC!!t~nc;y~and :a:bo,v;e:a1!~secu:ried.:~iIliI,Icuxl
,.laocDIIC!tIlu. ,Cus'1',oDilcr;su,n.d,¢l'n3itlla ,that ['hey 'canllot ,aIIways ,~ the: deSi~t.,cd,,level ,of scrvice !q:lJiaJ:i:t¥'. Om, sum oa;asjon,Si"lihCfexp~tt ;31, dl_~.oM .lev~J.ofs(:nrioe qua~ity~ whi.ch.canbe mrnil~.as: OIa:d~quaite .sewice,,'" To !c~te_ e:mmp.le, w,h.en.oae tfav,e~s .~iDI lli. lO'Woos[ .fl~!ne, on.,~does not ex~ dUll aiidi.~ '~(!!pmvide

,SumPNOlWS(OOO~O;-.f1ligbl:orallY oEher .Im::ulies o:rh.er ~.han. dil~fuUiUml~n[ i(!!fo.lliI.e~ s 'exJp~c£adan of [udhln,g ~e~rdesuRuion. Thesmndard set by c:us,~ommml' desJr-edJ.servioe and ad~quatte ~~ce are' ditkr-ent. ,ff me «.~,.-:.A__ Ut;;;~_e_ .,L-- ·;L"c"dj --~-ed.'j-e"i~ {lC then ,~l.c:,(j-.qj c iID!erD1;:F 'Ii,.~ v-- p~~~ Iil ve---31.,;,~:fi-d ill: Ii..~"~>·if ~~lmm_ ~CS_[i_ ~ s -~ .'-'-.':0'1 SlCFVLC One~ UL _U'S_(I ----:1 ~ cry -I~~~A c:t 11 S_"i.,;;LI:L 'wh.eJ'~ if~lh~~[Viec' ,o·:fL~~d '~Jow ~e ~ad.equarmj' ~~rvie~the'Rthe !c~tomJerm~y .fool kigt\tJy disslrls£i6d is
,0'1

~fibppy., Des~Jcd service: ,is;~cDli~ fwm big,iht.$i[lcvtl. ·0.£ex,peaatiol. ~owcs~·~eve~. apootall:i(l!n. o:f

~dladcqm~c

~ntioc ffeprescn:tsdu:

Title Zan,e of Tolerance


The! ,g;1,PI bec:wu:n. des.~f;led semiu :lIndlarkqua~~ ;s:e;rviot\!: the zone of mlemfil.ce. SGlViaqm:aJj.ty is rrhis: sone,
'Y;ilirles:3aDS5

Zoo_
TDl~raBce

Qf

Copyrighted material

Whcn rAcacu:!iall 5C:rv.~QCd·e~i.v~ryls albove d~~rloo 5Grvi:oe~CUSllio'mell'sa!wm«[om. wiUbe V!ll:ry hig,h. S:~~. high .s~rvi~G1.~.ili·ty de~~'ts rh~ IClI!I.!!tl)m.~F, Si.mliJj~df~ wbCol'!! h~ :a"cmai. S!!M,(i~ d~~~y~f}" is b~J,ow ~ ~..;II, u lei '-m:C:il'i:eII~ i!.:li eh - i di,,-cd.- _~_a.y _._[C- 'iII~e..' ---i~e' q~uy ~ 'v--,C-: - ,':, '~"--I" .-' .•~.-.~.-: ~eq,_3U: - sC:fViEhe: '._te JIlSro ~__ __ ~caR_. 3iJ!, .. n1I .. :. fil" ";"- SCfV_(i_ ~'I_,~'II'I-;C.-- _erypoo.r. DUJ[ Wlll~]J,m (:~K zone ofl:O:l~nn". ·.~iOll q,u!lili'W' do~ .m10~: m~cmliomull~rjon ~r .• Bil';yond Ol!' htda,w ·thl! zo.Iii!.!i!:of t~~eitilIDct~tiiV.i~t·q!ll.di'ty .is pttteivcd ·asn=~thc\t higbml,i(!Ir ~@!w. 'When one ~ppli~s fur a b~nk :~oHl!~I',ettin,g $ me~oan. sancdoocd wj,~itll ~~asQ'.naMerime .mal)'" be ntOO.:as: :savio!! qwli!Uf wicht.l. ithe mne of·~o:l;eU1il.ce,
j

me

B,u~·dl,e,w£~QmetwiU be d.cU,ghlicd if a "g:latiQnsltdp lexeoodvc ·~15: ~n bim and ~QUe«'~hedooomemts :at_nd g'tts the .Ioan. salil,o[~o'med a'[ ·theca!d~.es~.
I!' '11, . • . . , '11', ' '. 'lI:vifL ' •• lb. JI .r;;.uneo'r m.ICfal}.CCunes across 'CIilIitOf:lllC'1·S..1I1CaJ!Il wqacr-(Jss "':l.ma(~!o!fiS.. wnCI1l, O.rnlC IS ~n iO! 11IUny anlil he ·.·l~1f1-I.IlS"!fi'1!7)i __ , If-": '-enr', ·:~ihl'- __ l. WiD""' in .iil:!I:;Ue OOltraiiiw,lI:'f _C!! __ . qu .... [!-elfVllltiCl'fi .•' _~ fill~y_m __F__ ,,_3i_.ml a:rnd,-. _a"e IlL l~- ~-q.!lg~ pill1ll_~y, TIt··- I.'~.,SlLQlC .. __l: ;',c.:oomer :m.ay .show fITIIore~o)c.ntllCcifhlc was n(lE: ina hUf.ry.Diffe:llCnt .hair S:111~s{Sfto.nl me s-atnc:hai__,.. ,cIO.uong .saJo.llI.may dcHw'l" diB"er:efill ~ewice 'quallj.gr ~:I1I. if th.ey wlorkf,'Ol' the s:l0l.iI!!lfit'll11 '''7 _,
..... I', I', ---·j a,

,i

-:A~1f:l ~l'!SeaJ!ficll.er. ife ---"C--'!'-I;.U WI~eD __C :J) .-. - -----..~-. .. ... A~m---iD' P,·. '[j - . :Dr. D,ilfteW Ed'wa!1:iW a ffi3irK.en- ------------J 3 CUis[fiimer w~n 1lI_ de.HIl!'.h-~JI.it. -;~ fh QUS,.(I~ C:J i.·lis&c~10[IJJs very .M.gh., A de~ighted. ,Qlsmmer ,1[l,3l1bcoofflle lopl, Iwlthe brand, :ilnfllutrc .. AUlo,niing fa
C -

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lathe

.iH'Q of

cl:it:S~:O.m.er ddiglu,

QliS~o,merne.l!I!pec{:

d·u::servi.a; pr-(llv.td.er 'to·lItII:8U. lb.e

IOOfe

be~ents!; wbh;_h he ,ca~l.si :Jl1I;!!I:s:r:-be-f~luJifemeillits, A ,C!Ilstl!l:me[' .R1!a.y be satis.fiiOOI. wb.'I!i<li1l. an .ntl:u_<!i[-b~fequii,e01l.~iIliUi aremet bu~: ""HI! be dI~~tiSh!red w.hem Ill. :fiinnpmV!id~. DII!ISf...oo..mqillir:en.9!Urmd mille acmmvc:' mquir-em9lsa]so. Cusm.meil'5 ofa .gym~ which. has ¥IUOIill"tGqlidp.ment and !el:ioie.lt iml.SuuotOfS'". lNay fee~. a:i[~s:fied s ..Cus~omers w~nbe detighE~d ii:f th!!, s3OI.egym. ,o·:f&n pefSo.mall.Cio·m5u~u·rj!!)l}lo.l}. ' dl~eltpt;)nS androp. :fo:r d.e..'Stes:sing.R.e'~;K[h :suggesm dlU' 'CILl!S,r,om.~f$ may ,s~ick Iwb·.modls w.hJcb :h:av,!!d~l'~i~r;ed dtem. in. dle p.~'. Acrordiq hi) .DulY B~lman~dll!l~igb,ood. 'cmlrom~r.s: iil:.C~: .a,sOpiruO.R i~deirs; whOI ,~~vepositive f~~ba.dti;. Del~ght ~e.si.dtS inbeul:t w(lf:d"'Qf ...mQ~chprododol~.h.ighcf ft.,eatsaJts afiu .-(catd' b.r.HH.iI C:qUiity .• Dellightifll:g 'C.w5tomcfS may not: aI.waysbe ,oost eR"ecdve for rhelfimll. linl W .short .fl!m.r !but in. d\I,e ~(m,g nm. h helps w pin. mO(lC bra_n,d~Q~!ty ,aJndCWjtiQg_~f~~lt,

CJUSTOMI'SATIONI VeRSUS: ST,,"D:AIID:II.A1iION


An.Giber: .iss!lte being serviice: providers i~ general! g. tat d[~erU afs;ta;fidattliisaJtio:n Ith:a:t tD.q ::lholi'lJd .adupt. in ~keir .s~rvioe plflod!!!I.Ct •. Many :senriCiIll pfovid~8 :awtrl.l1iI.d. WO.f~.dI bi:vep',ro.6~d foom a s£and'aM.p.rod.!!tc£ Ih~ ..
_.

dcU~~d ,coDsi.sR:ntly ORif' 31.lOillBpt\fiod~ andi, .. ditell"CRE 1.(K;;l;tiQDS.The Indio ~am;pl§ -. ,', "IL .'Ii, ~.: " If I I. 111( l:50 _~_CK_ -s ~-I;!I; ;'m ~·I~llo~Id:t.tU·. .dj-~ hDIIJe:rSaner£hc 5malll,IiiO·W.n .in. K.n3i...,.I.~~ :SOIU~ "Rulln _e!i'faUnLgi I'>m. __C_ --- --.P- --- ---- -- -- - ---- --- ---- -- '.-- --- - ---- -~~
_..

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origtn.allcdhana NiUT ..Theti:u'Mcr Js a ,cha~n. OfW[3mlftfSo'Aien owned by d.iihe.~:u: :~pl1l:~ but :sef'Vlrtlil i:~ liI!f~ .• _l.,[, __U s: H -------. --~Y ----- ----. DId --- - -~.1 '. __ . __ !SUDu. I' £:..I""~· 0_£.,SOi!il.m _~ d11·'.. :~aw: ::md wih Q.C m,."..i~:~n .amuJm"'!k shond.1Il: ---- - ..in ill ve~ ,ecoiflloO'liw ~ . __ l;'omI ------_ Rl!MlDer. Some !Df l-hc:se ~~kc e Kamal f~e.sta'UrnfiilS~n Hyd!Cf-abad, haRI ,evolVed wiid~ a.·w.ider: tiS,Ofmil~"iU! of m ~tems:'O'Jililihei:r :mcnl!!l. ,orVler:Eime~ bUilt Ilh~y .i3ill"e ,~seQriaDy a'SO!!ltB End~3JO.. m.sDlU!l":H[£. NUT~ !il!rIi mt'; t'!m.~J" han4,. fo:Uowed.a MicDo:naM.:'s kiiod o:f .I~h .m(ldl~l :£or (i(l'.mpl!l~eF i~:UJ',;~do:n.~mu~ 3C--fCliSS Endw<1,wid!i rfuCi'~ Q~Nt~n8:m3ftr @flhc .~at:er,cenues !lUHier NUT oonuo~ and :glllitiaace ro ,Gd;;,v!er a:msI5;emu :s~n.foep.roducu. Thls Stn~I' ,eoupled w.idll.a 5_dud bOl:.u::IIue~ plrl(lU:I:~tsJ' [~iIl~lmd.i,n.ra:pi.d grcowlrhfo:r ,ui NUT andthe i()ompgy fiOW h~ SeYltt& ~J!\!tfit.S ,otl.tiJi~de I~dia. ~oo .. l~ gcncfCai,. sGAdafd1su~on. 'Oi£ren
,·1 ., I! c~·' l,

Copyrighted material

~Qo:nOim~~ seale, QPpOr[II!Ul~t~es of t: I!.. •. "--'1-] f-' .11.., [llanCw.~s~:IiII; QW;'. 0, grow!i;u. m

mr bFMlldiing

aad .rnpidgrowth.

pOinicu~arily ~~ eembinarien with the

00 Itbe 'Dme,['hand~ ,c!JtS:oon1!i.s~n:~o~ ats'@p're~e~·ts:seve:raJoppouuniti:es :and he~!p$.ma:ll1Y !bmine~:!ie.sthrive. For 'ID:amtpl,e"c~jl1~r.iIilg C:Dm:pam\l,~es h<1!Vie top'rov~de !:!l diiff-er·enltkind 'of ,menlQ ltoO eilich :fnard.e P~Ut1 dep~lJ1l,dinl 11:1'11:the wm ,of tbe cusmmer. Sim:U{lJJ[Wy~ in Ithe IT w'O'.rM, the ERP !pr,ovider!5 Sl!i!m, as SAJ1Ian,,d ORA.ClE smut\dO!J!lE w~tb. smmdud.p:ackaiges airm,edu the lfpi:caIDm~ufiH;~IU!:rii~{!LlIldi m~:rikletiing companies. HO'We\i'ief.~, ,newer O),mpedooll',S: da~II1iII~d.that dl~Y ·oou;Jld cusEo:.fiIljs~[ihe· ,RW' so!I.I!.I.[Jilons~o[ a

PHEiculu business alt a price

~,OW~!f

~ham rhe b:,~gER1P' pmviders ..1',he n~ave~ ag.en£slike SOTCand


J

Thomas

Coek who ~Wt,e:d ol!n Wildlt $:ta.ft:dard ro,Uf packaG~; to EIiU·!.\IIpc'IcheU'S .uil,d. e~sewtter.l!::fiI()wprovide millny ~clre!m:ria" iE,ems ftu.m. whit-h.a. cU!s£o'm.er Ca!1l.~ddtLftd ohoose' a:ndtail.or his IOWn. tou:r packa_ge dtaJt ~es!t fits Ms needs land budge[ ..A senr~oe compan, coo. thus offer mmiuttJ .of its senr~ces~j,f feasibic', [or giving 'the CIllSIJO]JJlcr3i. ch~iee [(I: p~,~ and Choose the .mM:u~.es .h.cDilaf Uke 100 buy. In~~nern1, ~ho~.gh> me!smndardis~d. Of sem~"'sitaAdardised services m:w.yhav,e a benet chan.ce !U~speedy ,gr~ and. [~grddo:rru as a "sewiu b.F3ind.",C!ompQl'(ld~Q:31. . ctilsw.mised :;erv:i,ce. The €.lIl.U!ptiol.tilooluM be
CQimpiany

brands in the B..~o-l:a"eli1a~W:hkh®en

services

1!O C:o:rpOiro3i![e bUi~rs..[l]JdJ.e.se: C3SesJ~.n

[he:

,cw:[.om~saI ~m.ct:plrovid.eII:'S lbeoo:ll1I.elt!lf3nd!sn 'tII:te~(;tOlf'le,tnilark~tas the Ind~an.IT romp3inies .i\i;av,eho·wn. i s in. ,m.e-If Iraf!le[ n1Ial"k.lf'tof the IIJOpUS and!. other COlI'pOfa~e.s.

DltF&CTS,! IPAIIJURIIIAN,D' R&COY&RY


Sen.iee d.efcas~nan.y paRol the deli.v,efYpi~S
to
CMiI leadl1o,a.fa~l:u:re ,of.'le:rvIee. Usu3J~I.y~ewi£'es ate' .pimne s f.a~I~ul'e. n~e$5 Im,(!l: provider i'!! ·Qb~.!lsi~ albout $ervi~q~~rtya:nd u ,takes; a:. ~Q!t!(!Ifprec~Jgli'Qf!!s. $(IIme 5e'.rvio~ miilum Ub :alir@'rraJlway aOCtd,e~lucan be d:~e !i:l1),far;~'Q'F'S beyond m,e marn.~emt 00ll!tro~.s!J!dh as bad

w~tier or sabotage. Howecv:er, j~ ma~.y !~eSi. dles:e"~~efal~!ulIeoo!IJMbe p'rev~'lje:~ ,or at ~:e~~a feoovery be ~!tIl{:fflpi{.edb,y~hefe$p~nsible ~.p~,ies,.F'Qrn' ew.unp~e, if a hote16ncb ~a~t~ g~e$~ is not h~'P!f with the
--l __ ~~ ~_ _~ ~ . __ __ c

.-.-~""" - 'l1l1,-.~'h::_""."~.-~;- _~HIi __ te

niI,ea1~or aJ.night due '~o,a~ateQ;fdY~~n~. ~.o:8'er w ,PJJt .3J.p~$enger ion ~~oth:e'l'rutUflie,,{lO' pbne
t(li

has I\c~i'Ved. i.t has sevYe'rnrnWill.:y~~:'i:lJ'(~ r aifu:ilmmh'DIh.tm .. I rt 0 0 uM__ ,o%r _ II.im a c'-~e s~~y.a fre-e: .-. ~ • " ~~. _''; _. ~. ~_~~~_~~~_ .~__ _~ HI. ]'L~~ a '-Ctl_ b ag.l!1aulITl~ee of a b~ueif serviee if he: w,efle ~:o mm¢b3i.ck ..5~ww);aflf" <liD. ;ai.fiI~newh.icih has !Ca~~ned
til' Mdt ~e,ndru.b~m at Ithe e.;.'(pe~d. dme.

h~dcs;dnado~

Apart :f:rom.uy~ng:

'''-(-~"~"'~"'F'IiI'11'";'" o~r '.........._' I!J'""..:iI. "'''''0:.1' . ",lIi,.".~"Ii!,"'·; •. , I[~:"", -«~-"""."ld-I·Il, -'U"iiV' .• : 1.

~o .remv·er rMmind~vidua~ eases ,o:fs:ew.ice mUilJR~a ,eompany an. ~alSl(il ofFer g,!!!!,:a_ra:.Aliee.s; ~mad",aIllCie~Jh.umJaypromise ,oenaiiBEhings nke a Il!efimd. !of p3Jymen!tmaciei:n case a sCifV.ke is. DOif
.lI-- ......lI~ ,o ..... .. 'l.JIJC::m",uUJII,~: ;..... d·j· ..JI;m"".~., one """ :01. 1111.~ .3JQ: __ .,L -.~~.IC- -•. u:.m.";;. J.~ - ....- ,<u . .. ne~[!Ire:
I

1tI;:=1· ~l-"--cd'- .

.....,,-~ .• c - .-11, c- -il.:lj ~U, • .Ii(l:[Ii, S~UJU~Y,

be·obSlen'iM. w.i1tle.d!uign1ng

s!l!I.dh.a.g~am!ntee .• B,1l);~ iF do.mI!e w~l~itICil!n pmve'fO be a. great dI.tf:f~l!'enlldO!rto.r.

and. ·am. lhe~"3!.:!le.Ri.a: ,(lORIJpaoy I~(ll,~eapah,eadoifim ,coIRpe~i~~o.rs. OO!I!U$!C·.. tk~re' i~an ,elemen.t of' Of uedUli1h, iJily,olved~nEhis~.e! ,~m;tomefmil1St Ibc~ieve:lhatdte oom,any is. seriOMabo!!!U'trhe guamnll1ee. The f~tM.en in ati'v.ulm£l. cotundes :guamntee: die goods mey ~U~ ~andmcst :of themwll m!lrebac'k .an1d\t~ng: c_hu the ClJSf.omerd!oes not ~tike~slulbjecf If(lloenaiD. eij)Syoondi!tiows,~ikle PfOOlIIC~iB:g pI,o!l)fo.f~:nJ!fch,a.s~· £~£Ull ehe .stOle', The: 11ll!(Uafli ~e"jloe mal'kel!e.rs arell1lOI[yet highly !e\I',obred in this :!lespecl~~h()!!l!'ghw~df:l. in:cre~jng Levels of,oonilpnitiolli ti\i~y' wau~.dI.~avt:!~t)i :dop[ ,:dnTIl.i~a:1:' a ~tfatiegi!es: in. th.e·fut:ure.
J•

Copyrighted m aterial

P'HS"E!.eti¥e 2..5

B,r,andiin,gl,Services~Tlhle ,Case ,of IBIPel.


There! :are M,t!! {j~ffelr'eriTltwa;ysthat,~he SP:C'l has Ip:layedl~he br,andEu~'uiityerlhanoemernt g!ame'. 1. B:raliild~riIgthe pr,odluc,t ,Sl1d se:lliingl it,~o ,a lI'fJ~cheSfl:QIRile:nt.S:peed lis, ttls' na,me lit has, g:i,\f'enm a :sl!Jperiorgli",ad~eJuel wt:I~ch a!p,pealed 'W the' OOIilSC~OIlJlS'" lIJIf,lsca:I:E!' '~OIlilSJUmer whooou Idlafforol 'to pay a IitUe m,o~e "or :sWllpe:rliot qU811Uy iue.11 'witihl Det~er ohlara,etelris~ios,. oom~alfE!dt:ourn:e genefa~ Ipetrol' OOfTISllJlmer. 2. For~he ,g:ene~al oons!JJm,ertorJ.tlmeeo:mpany a,<:I'<:!'re5s,edl,8 ma~or'OOFilee:r~OUD~S ' ,ajbOUi~theIpe,tJ!iol, beirrrrg ,a,dll!.Wli[e:r,a~edHh rough an ,el1atJora,te 'e'xElf1oise @fali.idi~ingl 'fuall ,q,u8ility at Ipetro:IIPumps", snd ,CEu1ifyjng ~he:m as vendors of 'C!It.!'iilJlilyfuell. 'O,n'ly they,didl not issue a humdrum, sarita,rjj"I!Qokingl dooumernt.to cerUfytli1lis,. :11~s,te'ad.,tli1ley integra,ted liI:is, linto a brandingl,a_~Elfci\se.,aml(llpLIt up big" vilsibl'es!igl11libo'3'ms, whidh lread Pute ,For Sure. Tt1iis beC31mea symbo'l of ,cari'nglfo,r ,clIIst,omers'j, and 8,cooll1d1i:ngl to, Sp:eL's sen!i;or 'ma1flketringl ,oRici,llls,thle cam,pa[gn oorntri'buted ~n oonv,enJill1lQI 'QUISIDl!lIe:rs of 'D'~her rands offuellto IBIPCl. custome;rs . b
j,

.Pers,pectilve2.i Prom Saftw,.reSerw,i:ce's, 11.0 .Softwar'I' IPn.du;ets,~Th'I' !Ca!se ,of i'~le'x.

S'o,llulio:nJs
The ,oompany now kJl'ilownas, ii~Sex SlOluti:OIllSWilS: ear1lier caUed CITIIL, ,aJlildwas lal lpart: 'of ttJe, C~ligfDIiJP.Today, Irnaving had silangi inning:S ,as, a, seN,ice ;prov;ide:rla,various ,clUenls lifiltheirllam::;ia'isaetor'~the ,oompanyamso, boas.o,f FLE~CUlBIE, a ibrslnd,Qd softwa~e Iproduct raniked by Ute U.K~basedl'lllteMaUlJnalll!\ankijngIS,y.s~ems, a:s tll1elNOtll~i's,nUlmber anesell:irrlg unive:rsa~ bali"ilkili"ilgsoh.lIIian. The oom:p'sn, mSlIiIsgedlo trarv,elliIJI,p'~h.ev.a,lue eh.a.in from Il"eglJ.!l~all' se:rvieesafter )",ears iOOI bU.gl hl of Ih:l.rd wtlfk,3I11dforeg:oin,glsh0'!1 ..tenml ,gll'owll :a,rea.s,SWlGtI, ,8!sY2K (V,e-ar :2 oomputer pro,Qlramm.es) re!laled oonSWlI~ill1Ig ,assiglnments ..~t a·&:aJso'lcnli~uI1: to ,establlish w ~ticJed:ibU~" if1l~hesoftw'aN IPli'Od'um s:paoe" lbecause '11iiIcUaFii 'oom:paFrlles,are weU-lklilown ' anly in, ~hesoftwar,e se',Nwces, ,(lIiIotthe p~(n:.1ilic.fs)sectoii". lhe bKlli"ild tU!Ji:ldlrng 'eH'brts by i)..:f1~iX, ,ass~ste:d by Ui!ei!i 'gr-Qwlnglbase: 'of h'i!CI~an 'clle:ntfh he'lped '~hem overooliJle, ~he iir1lj,tiall resistancel. 'liihe p:l'iOch iilslelf lbei.ngi ,goodl., also hellped .. u::lt: Markl.etiing was often. done ~,ypeQP:le! wilh bS1n'kilil;geX:pBliiie.nce., wIflJo,ooull~dl 'talk.Ufl:e ouslomers; Ilafilg u8ge:. Gllo:tJa'l·aner~'sa,les support ~sal:so mquilr,ed for main)! software IPrOOuclS to,suooeea ..iioo flex lha:sUed Ulpwii~h: 33 Ipa'l'itn:ers, iOl50 OOUIi1l~rb9S IP:liOviide thms,. to, Th,is casEI,shows tJhst ii~ IPOssi'tJle fo:rCQmpSIAlies i!1l india. to ,d!evemopj, iblr.ana .alnd ls mamk,e:~ se.rv~ce'p:llod~cts. abroad in Ihigh!l)!'OOnl;peltiiUvel" Ihigh tedhnol'ogrra~eas .. its
l a,
1

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Copyrighted

m aterlal

66

Servtces Marketing

SERVICE LEVEL AGREEMENTS


Even when the rvice provider do not provide an plicir uarant ,It P ible rha the ervi e customer may ask for a minimum ervice level and impo e penaltie for default. India' IT companies now have: [0 work with uch service level agreements in many cas . hese are usually related to delivery deadlines agreed upon with the client. and there are bonu for early delivery as well as penalties for delays. Thus it i not nee ary that a ervice provider would alway have an option on whether or not to provide guarant . Thi i gen rally true in B2B mark t where th client neg tiating power i equal to or higher than that of the ervice provider and the ervice i highly competitive.

Perspective 2.7 Innovative Services: Konkan Railway Corporation's roll-on, roll-off (ro-ro) Service
The Konkan Railway Corporation's roll-on. roll-off (fo-ro) service is a success, not only for the corporation but also among the truckers for whom it s intended. Introduced in January 1999, the corpora on transports loaded trucks on wagons-called flats In railway parlance=between different destinations. Last financial year (2002-2003), he corporation earned Rs 7.50 crore from he (0-(0 service, according to Mr 0 G Diwate, Director (Way & Works), Konkan Railway Corporation The service, he says, helps in an indirect saving in fuel cost, and reduces vehicle op rating costs In terms of wear and tear of tyres and vehicle maintenance. The service is available between Kolad. about 145 km south of Mumbai in Maharashtra's Raigad district, and Verna, in Goa. The ro-ro service saves a 430-km stretch of travel to Goa from Verna on the national highway. The truck drivers need not drive on the ghat section. The time ta en to transport the wagons on rail is less than 12 hours while the transit time by road is much more. By using the ro-ro service, the transporters use the same fleet of trucks for more number of trips. The service also ensures on-time, intact cargo delivery, free of any risk factor and free from multiple handling of consignments, says Mr Diwate. According to him. the ro-ro service was launched when the corporation did not have enough freight traffic. One service is being operated daily in both directions and each train carries up to 28 trucks. "The response has been overwhelming and now truck operators need to book in advance to use the facility," Mr Diwate said. The trucks mostly carry building materials, Including marble, cement and iron rods. The truck operators get to optimise the fleet utilisation and achieve faster turnaround, he adds.

Cop rlgh ed ma

lal

IPi1iee IFor a two-a~lei~ruck '(lIJj to 25 tOWilnes,,gross 'w,eigh~)I,~he!lf,ajrnlspcu1:a,~]oli1loos~ icom Koladl to Velrna ~s IRs,S" 110Dallildfolr ,81 'three ..axl!eve'hhole, ~iM As 1,,16501,. ,every aCl¢litiDIi'!!all 'is f,oli tOr;Jlne,~he,eost is:lRs 2!00. ~ Ulie IFatU!'in diredilo~, the eest ~s IRs: 4!800ali'lld Rs 1! 200:., llh e !, n oorpoli'atinn pl1ansto move, cOril~a,il~e~siin a similar manner~ ,9;oQolidimlQ !Mr [:U~wate'.11iUiU'ie to ls nfJ~ muehl of (j~lfferr'eliilce in~he! '~'rei:glij~ l:u3Meen tlFilefD4iO $'e'IViice! ,SlilIcitralillsportat~ori1l Il)y' Ir'oad I' he sa,ys:.

I L ';_
," t,

:.1D; 0 P,e[;sp,ecti,ve'2.;8
An Il!xam,pl~e, of :flinan'ciial [Plr'odu,ct:s~ .M'G V'ysya Mutuall IFund[
The IHNH3 'ts;y,al mUiflual fu~d ,is :s:~ilila mlatifVe:liy s!mal:1 plaiy,er h, liIe country's IRs, 1 I'akh V ,CIliOIli&-iplus a!ssei~ malll1lagelilHurut, liiI"IdUistry,. lit has, ho:wever, 'g:olflle.Ulf1ollgh SigllflliA.csflIt modiications in title Ireeen~ tIme8:~ ones Iha.t sire '9xlpectedl tlll support ~ts 'exlpa:n!si:oli1l pm:g.Falmmes. The m'Ut!!.ll:a~ fllilnd (Mlf),. winiictJ ,cl!.Wnentlymanages,a few basle sohenTI€!'.$"has pro:posed ~o ini~~rocjl!Jlceaoo'IJiphil'M :Oi~hers,in ~he, near '~utruJ~e. s, Kavilta. H'Uny~MO &. C'EO,st'iJs[!\QS M half planswittl Bus,'ne58 Line .. Wloa.l. sOld 0" c lI1ange:s. l'IIi3Jv·eou p.assedllllll"O'ug:1!1 :reoolnll]tl' y
J

Oml!9, the ~!NG, rOllllP' has, j'n,omased its ,sql!Jlmty staks, lin Vy,sya Balnk. 't(ll 43·.'99' pSl1'esn.t g from~he ,2!() perce~t U:Iheild e'srilier.The ba.n'k hiSS been l"eJ,named eiS liN,GVysy,a EI:aliill!c: s'Ubsequ:elllt~y. The 'QIII'tOl!.WP .operates, as IIN!G!Vysy,al ,in Ili1Idiatli1l~oWlg'h O'Ysr500 IilOW lb~aln:ot1es:spreadaoll"Gss the country. iwCl'. therr,e Illas been a III infiILlisiiOlrnoffres!h calpmlall ln ;IN:G Wn\Hlstment Malnag:ement (0 , IPvt Ltd, which itseurasset ma.nag9n;J:ent (lOm,pany. Tt1Its has been dOfile, tol :stre:ngtti1len its, pr,eselilce'. lrtlJe frr'E!'st1l ~ltfusi:on ,eamefwitlnll Nfl Vys:ya IBaJlilIk,a,oql!ll~f1ir!lg:61: :stake ,ofaDo'L!lt26, per cent in~hel AMC .. T1his, Ifefl'ect:s,~he na,~ure of IING"s Ilong-term oommitm;ent '[{II the, :llldian market IHlaviiin,gl'experienced' line,sEI! 'GIiI!al1:g:es,. wh:art ~ar'8 your 'targets mow? tn ~u~urn .alill our str,ai~egteS' wo~!iol 'Jl)otIS on ij,'ewingsiim,p,I'9 and :seoure, o;p~ions '~O oustomers.rille broa.d ide',81i:sla Cilev,is:9' moo,l Ipracti!Cal inv,e.s~memrt.so~I!l.II~io:ns 1it:1e;m. '~he, 'for TtleseishO!!.ll~ldl be a'Ma to aeln\/',QIiheallttly 11I9tums ,oom'biined wi~h ,8 tltgh deglres' o,f s'sfety .. W,e Iho,pe, '~10em,erge'8s cne!ofthle topfllilmlas i n~he cominglyeal~S. Let !me add ltiIen~!tli1lat we Ib:ringl 00' the' talb!~e tlnle va:s;t: ml1iiiernatu:Orll(.d ,expewi:enoe gatherr1edi by' the Amls~erdam~ !based l~rH~lif! bank~filIg., inSliJf.ance andas:set; malillagemefilt The glf'OWlp" ~Iilfac·t~haplpens t.o be, ,amo:ng the wtlJ,rl':(j!'s, I:argest. ~l'iWb!glratedfijniallilciliallseNkies IP:rlav~d1el!\s. Where' d\oyou :see 'the MF ~nfhe! days ,ahead? At~h.e mo:m,el'll'~we :e're pre&enl~ lin ewght ,cUiles wilth Im0lf16their'! Rs, 1 I 1010, OI1lFieof' assets und:er Ollillf' malrls.geme:nt.We Ibellieve!thjSJ~ our iin'here;nt:s~relngtlmls, ean Ibe! Ileverag.edl to,
f:ormulat~ lnI'I,oresc!he:mIilS wffi~h vi~w' to Qreat~ !better val:u:e., e

Copyrighted material

Ou.~ UqlJJ!J:daliild sh(llrlt"~e!r1m plfiOOI[J:O~tsaw~' ,aJll~e,a;dy amQm!gth9 'tOiP~I~a.~dll!"!!a!iT!EI!s lil!llthe~f reSipeo~ive oa_s:omies,., The' f,ul~uf11e' looks, bl1iglht: 101''~he 8i~set ImamllBgI!:melrnt, ,i;ndUI$~~alndl !onl, 'those, players 'wiltiJiIl:s:~roll1lg! Oorpol1':llte backingwol!JIllCi bel ~he,l'ilke'lysIIJIINivolI'S.,S:maU ,and iliildNi:duall~un,a hOU!lH could! weU bel abso:rbed by U"E!ItJ~rJger 'Olflles,,·n.~s wOll!lllc.ilmake, oClm,Pel11itioli'lJ ,even Imon~1 ,agg1rlSSii¥f,!"

An, I11UJwscll1e.esilmllte

IPI~r;el~lne," 'Wliltillt pro:mipled "ou '10 ,uvliseltiem?

We propOS9~O oomsl1outwiittl a mOrrl~hly rlfl;QOmelp~anI(MI~IP)amld an ~m;hr~'x~liflli«ld rPl~mJl!Jlet Thesew,QII.II:ldI be in Unewii~tll our atIJempttig, (8)lbelr ~othe ef\l\9Ir':increasingl lfIIeeds olf .. lilnv.eS:Wrs,. llle NlIIIP.wh~Ct1JW'OlLWl!d1ltre,IlaIUJInoh,erJilmmedate~iy, iis, ,allillJle(l1 at lrruiigll1l InretWOlri!iil lindivlidiuaJls'll Ife~il~Cj people' and peJflsliorJelf'S"amongoUruers. To beal~medl wa!h loe:rt:aii~ addiiiclIl'IIlll :saNioes~wlttiiiOn wo:u'ldiset lit apanfro:m oIiIe:r Siill'lnlpl!e IMIIPSI' i,1wrJu'ld 'snah'le tirrle:mto seC:WlI~e8J. sE!a:rjy~ IreglJhu stream 'of ~~ieom.e. 11. W~a!t ~s'the, IQQ~e be~eti~ ,Ind $u:~pl!efle:ntal" tJe:nelfwt/s,in ,I ImlLBuial~l!In.dl?' 2. How !C8JmI m:u~ualflUllildlslJ.IIcihl as IIN:B,'Vyers, !prlewUon itseilf ~ntt1e Jma~kef? a : 3. Analyse :8!11,atv.silll!a.blre, rmu~uallfiulflld data 81fi1d!,co:mpSI'l9 them Qnf'ea~ureEh tatng,iblle ,8Jliila lintallilgjb~e,. l~yo:1JI liiIa.dI man,ey to invest mn,wliili:ctll wClu'ld be ylClliJllrflilrS'~twocJholces? Why?'

,-~

--------

;\Uui C~se ]
M,i,Otl Auto
W&$·a

Amedio:t '~e~st
time. Glt.aduaIlly.'lNith,
2003" b!!t~ l1h!l!~e'~s mlJu~C:hlowers!!:ruaJl1e •

dJeaJer for Ilhe HBi..nU'IM!:J!_fiI. Mo,~o:!('Gom',aJJl1!y.l!fl!d~a':i _e ~yer, 6ti:s ,rom:pm::ly had, if:iIio~bedup 80 per
1

~S~

pOpt1~a:!i'C;jllJ:'m_.a.hr •

~iI:

:wOltil!.1elt

,snMiea:t o~e

:!!:W1ii.IMsemMb!t:foJ"

'~he,anky 'O(iIl>ewpialre!!:s. Itlhe5~!(ie hiBIJil: (;:ijm"e'd»\'Vn to albolta!~&I'pe!f loe~t by :~b:l,80m ec ca.f•. h:t ofhe.ir s~~rruf-;s", fhe ,mm~ifliF'lyhad a

Car :fro.m .N.WOfi.W'M upse<t. as '~he 'CaJJr had d.ev,eWaped a ,oog,IDe ()If srupifica11.t plioblemswli:tnm a.wle!tk.[t had ,m:lj 'u:nexp.rnmn~,n(]Ii;~e: thee'J:ilipe while in.
illU![~ afiGl~ts Jiea:rbtl_'__m:per come' leese, The il!:i!U,tomeT da1med.~kat had

.A. cusilromf!r' who :lmdI. jUSit 'bou,gMthe

me' had. been

so~d a

d),e-lediive Cm':, ,Htdrnat ithe d.eale:r sliuliutillld.~eflrna.oe U:wi:m..a. if:iIie1.'lIlone. Th.e· sen~~e' m,aJ_[IJ!IIIJ,E!irMOIl monrs hied 'l\o C~m:mLm!i!Ci1II1~e ·the· bu~r Si~ to hit it W~ ,company poHqr bJI IDectif:y ,.lyp.ooib]em.w~U\~mlmew,a_n,a[1I!1ty,er1od:&00 O'f IJOOlt aL_l1td n1~t h.e'w(luJd dl'J1 the smn.e" M[puthe·po.illJ].cy. How~ef,~ c:mitom.eif WIiIS mot iS~tls:fi:~4 ~s be woW!d :haiVl!il! ~" sufter
~01t

moo."'Vieilll~eil1.oe' 'Oil! aooou!!fIit of it. sev;e:il' e1yha:FniJ'e:red inhisi


l

me

I" BeWitJ;ahusm8Ssman on i~em~vle:.h.ehad. mlai_ny :mpor.tant en,pgemm'!its~and .hewo:utkil. be


!mJJ)'Y;emmti w~tlhou~ acar, \'Vbatshoaki dte Adon :semoo
~.!~:i'dJnl?

Copyrighted material

Perspeen,ve ,2.9'

Life tlns,ulrance Acrolssthie

Counter~,Al1y,onetl

One ,of the p:rjyate nfe~ insufall1oe! oomp.lulie's liill Indiia" HID:F'C ;S:tamlldaJrd Life" [1"800,11(1), 8lnnounaed' llial,it pliUiI:Sto offer 011'0 I(OVE!'fthel ooun~:eir) life, insul'anoe [policies" 'through a ,network ,of partner in'stitlUtions such as bail'll'ks. 'The ,oom,paftl,y:sB;wthls as ,an o,ppolitufIIl:lY' to make iiI.easier for reta;jll o1:.lstomerslO buy Ilife, h1Slur,ance [polioies. T.lle p:robl'e,m willi the usual seiling method through tne agent isttlist a IOit of ,oo:mplex, Ipennulatio'liiIs anci'oombl,nati,ons ,are, pCllssib1e",tliu1trebll' makiil11ig ~Iiile deiCisihJn 81 complex oneforll.e 'cu!stomeli",.~liIa,t: [results illill putlllrng It aff IIIiIImanlY cases". The [!retaill Ol'C product p"anllnad by HD,FC s,tEu'l,dal'ld LJfe woul~d off~r a fixed IPrem~um,;, fix.el1 :Slumassur'ed set of pol,ioies(hrotlgh this [rou~e.

Perspeetilve2.10 Ra:lla'nce WeIbW:a"ld Di:versillfl:esits, Serv:ice fIItbc:: Focus ,added Services, at ttlle Outl'sts
Qln

Vall us ... ,

Reliance WebWfJrldl-the, C'OLlfIJrry-wide' 'c'hai:n 'of commlJnl,ca,Uon cel!1'e~s of '!l'!Je ReUalnoe Ciommul1Iics.lions, gIliOILlp".is doing a. ibris,k; busill'!l:ess jill g,a:mi'IIl!;l, clocking an ,aiVefage 1'IO.!OO~)hOIIUS,BViBry day. At IRs4,@ pe:rti1.Quroflplay, this! yl:t)~ds ,1:) fliVenU€l of Rs, ,4lakh CI.day ..lit !l'1 as, aillsoaoquired 1f)..I:akhl Iprep,sid oustomers for makingl use of its: oommUlI1l!iic~ti:@:1'iIoe:nt,ers"said Mr ,SLlIIilII Buch, Head of IR.eliance, WebSlorlB IUd 'that runs fho ,R:.eUanoo.
l

Popuil'sir 1,msma Iller lown!s Gamlifrlglis Itlrlliilling OLII to' !be s'Jdre,mely po,pu'la:r.l!1Ilot Justin the eitie,s but also jinthe' :smaUeur towns, where there ls Illil~el IBvenilillQI,e'nfe'liailnme:nt€or y:oung [people';, .sG,id Mlf Buch. WebW:orld islo:re,s 3,I1S o,pel!'ll ,at: '11,1) the momiil!'l.g Sind close at 1Gby lI!'lig'l1tThere' in ,are In:sb:moes 'of select: requests fbrthe ~sto'res to, be .kept open for all~.I'!Iiglht !gaming.;, he saidi .. ReliiaI1C81 WebWor1ds IlUmlOeilr .24:,Dand ,are roca:ted in '1iQ5,ci~ias. Apart Ilium Q!SminQI.,thJ9 OlIIstomel'S hsve,faomties· for e"maHing., 1,Iil'temet Ic,'hatami~or wo~k (wtlliclh 'COl~lldl rs.ng:e 'fromft![iingo,' re'pOMitS 10 mlJlti ..loc'ation oCl.rporatesales, :ooll,fe:rences, 'W,l'iIiol'lil len hapiPlentlflll'iough !W!ebW;orlldv~deo oo:nferenoil'1,g,faOillities)o •. o Som.e ofth,BWebWorl~ds 'fulI1IcUol1llike Icoftiee shepaas we~III.!. i~i.ttle aHra,cUons.~sLlch as, 'gettl1l'il9la phuJtograph :of on,·s onoii:ce FHil1ted on aoofieel lmIug[;arre ,a[I'so'[being ,olffelJiied heta,
l

Value ..addedsGrvlce,$ I'n thei ease of Rellanoe 1IIIi'Ifbrnomlml~te'l!ephone :S9Niic8'S" 'ValllJe..A.dded Servioes, (VAS) Dr l1om-:voi:l::e:sG'liVioes. 'CUI1'tlll'1lU, aCCOLll!'lit fo:r ,about 10: per' cant 01' all 'I~afinc, and mugh'ly 10 percent cd' [IJ18V€!nU9S· as w,ollll, said Mil' M'ahesh Prasad" 'Pil',esidell'1t, [R,e'lisl'1cs, InFocomm.

Gopyrigh ed

maierial

some compa,nies

ilti,e Company lis Llslng as: OOl'1lohlmarktne

inlheworld have,,achieved" ,saidl ,another offiCialll wU'hthe, oom,pany"

liIighest VAS, Iflltiio of: ,20-25 Ipe:r cent that:

Brandlng ,of ING~I


l

Bank and the GrOLl i P


II'·~·~' ,~" ~ ~ ~~

specL6c(lommmt
MlJtual Fund.

The~ ING grou.f' ~ ,. indicated.tlet " it 'wm~ walit for fhl!~etrlJl18 Mel con.dlit:ioM of tI:it@ Gov@mment _~ ~._ -:- ~.uehss ~ _~,~, , " ',~, ~ .. belom takbt,S ,~UlJr decision ,on i.ncreasin,g: its stake i.n the domestic~,s and..~ileinsurance ,(urns. The~Qlup htild:s 44 per' ,rent sti:1iktfm ,INC VYS)fa Bank ,and 26'pe'l" rent stale mthe'ING V,sya Lile Insuranee Com:pooy. 'Reac~S to' the 'Go,verl1lment's :pMpOSIll10 pelDlljt 'i4,~r oen:t fo:reigIil stab in :p:riv,ate SKwrbmllG, .M:r Bart HeUema.J:1S, MaJ'l.4;i.ng Di:rmor ,and. CEO. said.: "'W'. d' fll,ot:l\,UOWwi3 '~&mS ,and' 'OOf1l1IiOnso_ 'U~ pro~~. .. 1 'W W~·· WMtb~ .IL.·· I 'I.. .. 1-., •. L." . d'· ,. f' .,11..,:.... "11" ':t1 , .. ,'@".!il' "e 'IUi!n. _' I~yeno,
toma]~;e en the proposa]." Mr' HeUemaoo was speali11lg ~o'l'II,ewsperso,f1I$ Olll the hiun.cm of a l)OmmO'Iii, bmn.dmg~ of a1!1 (mandaI serviees arms, mclucbn,gibeIMC, Vysya.

ThroUl,Sh (0'.111100 bra.ndin:g.. th.e group pliuilS to P"CiljeClt i.ts,g]oba.l rea.ch and p.F'OWesS in mMa.giJil:gmoney ,(or 'c;u:stomers wlO'ddwide, "The JNG Vy:sya "",mefter an mtepa:tedi fma.m:iaJ soi:ullD'M pacl<.o"lg,eto, an cus,wmer:s m.the CQWltry." The 'cCllrparn.1:e ,campaign w.m attempt to ,erea,ie gl'eata'a:wa.rene&S iQf ~G 'Vysya" which. operates .m th@ CD'lLmll'ythmugb a.5tlI).!bm:l1lch network tn, 300 mlitl:reS. 'IbJs i.s ta.e' fiM time' tba,1 the gIoup' is c'OmdU(lmg such ,CIIJi' lntegra.tid ('a:mpadpl, ~ruolilghou:t the co~1:ry aaerit asswned. n'taIjOI'1ty ,oo:nbo1bl!. Vysya, Ba_~ mld. EoUorw'ed ~tup' 't!l:ith <I, chaJn8e~nt,he' bank's name' ..So Eal, the baM ba,sibeem [e~emgmg en the' b:tand c.reatoo by the "7:2.~)"eiU'~ol!dparli!:l'Id ,.1te: campaiignwill aflso,foclIJ!I 011 c.mCll'OOg: tn@awaJIleness of the ... '(',hm~ mth.E!' g:~(j!'l!lp'md. new ima\B~ ,BlS an mtematiiona] f:ina.Jll,d~ services pflovide.r,'" its 'The biLl,_k atlllent1y has, a cU5bomet ba.se of about two mJl1ion, de,pos~t base ,of dose: to is, lO,oJ)O Clam M.d mvestments eqw.va]entto Rs 5.0IIil0ClOre as, of the' first .baH o~the current fiscal

I. Commelilit on the bl'ruutingstrategy of .~NGVysya ;gwttp Eol"all finiU1l.dill! services. 2. OOOerv,e' som.e of the ,ad:Vf:rtlsi'l1g ofJthe' group' indudb:l!g, lNG, Vysya Bank. 'Com:ment ,on the
~IIJIO, and j,{s;relevance fo 6nancial ftOdudswhich D\l'G group' sells,..

:number contm:l!l@s '110,e:x,md) in eighteen. lndlia_n ,cU[es, wheN' ~t!.lde.!l!'ts, ",attllnd" ,classos ,and "taIk,"'lC! f"IJof,essors m real. mne", w:illiout fea;viing -their city. The cEIlSSieSMe rut IlveJ:y as real 'GInes, wif,~ it lot of ql.l.estj(ilM 'be.u.g ans,weNd~ p',r.ese:mtotforlS dO.oe by s,tudel1'ts. ,and :qw.i.u.e.s hem,s Ciofliducred. 'Students CUll also send emaiLsHtheY·ilfE!momcomf;omb~ewUhthose~.bll.tn:taImiy

wo.rti:ng ,ex.ec:utiv,es,lauficEled Ihrou.gJn (the ,electroml.e e1aSSl'oom. IDnpamel'5mjp wliJih Hughe:s Ecsoris COID_mttnjc~tioll.:U classrooms W~Jie's.eJ~p «the
.M!a:n~g,e,meiliiit,E:chJeat,j:Dfi Pr,ogra:l1.tme,foli"

AniIm.ovilitive

liemce

pJ10dUd

l.u.ll'lched. in 210012b:y UM K:ozl:!Iikiooeis the e-MBf~ orthe

Copyrighted material

sUdle5 arevis.itble ,onon,e wUildow ,of the cOimpu~er!. nd Ute p.roi.~essm" ~s\rfs;ihle mmi'l:other w.m.d!ow a of a stu.dmt':s. oompu.te'r;·,lQlher facilities indu:de .u;c'hjy·€s.to aceess mSi'beriaJfrom mJssed [Classes.,
~d
~OJ!\Itil:ctclasses at HMKozbilciode":s.

prnEer 10 "tall" , tlUougb. micropilo.nes pmv:idedto every student. ihe prll.dessor'sp~miom


new sta~H~f·the-a:rt ICOimpus.

progruune .for vui.(J!1.tsre,aso~,wW loonooue :pmgramme in mana,g~melll,

No wonder:,.. then.~hat loodback £romth.e .fbst bakl:1L ·!:ill ·e-MEr hiSbee_mt very' positive:,. 'with a lot rGf:s:lIJI~uons 'mm:i:lll:g in. tolbnpmve upon. an airoadyopodp.rndud ..Manyo.f du~ SU~ti:OFliS. me in. the pil)~ of oom,g ~mple.mented, lInd Indimrl stud.ents who eannet go iD aJllegu]M MI·A
'~I'»

'benefU from a world classirmo·va:tht,@ certiificate

Structured. over tw·1l terms, smden:l:s ha.\I'·e' lake 11 eeurses in each h?~ covering ,rUJ 'til) fUlIi\ct!ona] .;iJleas ofmlutapmmlt :mdndil1lg til cou:rse 011\stmtegk mana,g~menl and. Q]lIolhell"on >oompetil:iii . ,e sb"<ate,gy'.The p'fOgramm.eis la,bout a yeru:l!i'JIliIg. withl~,'llf aoou.t sb:.montM each.

Casses.ru'e held.·tWO dfilys'a. Week. in the evenings, a.1·the: ~candEda.te·sownl'c~'ty's stud.y oemlt:R!. Sevle:ra] inngy.aHons cha:mde:l:'lis:ethjs. 'prog:rammeb,om nMK. It has since been Im:Uated by ot.h.er B-sdlools~ lihus :p;rovm,g tlu:!if it ~ !:U"!!.t.[lla:pped. mal"lret segmen.t \\~~·Il.i~hMdI.a i:1!11t :mood.• ·whi.cll is.be:~g sal:ii:sfzoo ·through 'lids: inn,ova.live ':servtoe p[.ood.uc:t'.
I.. What a:r,e:some·oiler ':nmv pliOIduct imtr>oouct:i!D:US' o.r ·'imto·varUonS in; illllef~e:ld.of ed.t1calio.n. ·ilia.': 01!1. :ba.\I'e eeme across? What are :!:her m'turepfG!specm :Slnd! likelyproble.ms? Y

D,ISCUSSIIONI'QUE'STIONS
I.. Go
00 dlC

read:lng5 :in. Ch.apeer 7 which detail ehe

W~

.of the SER¥QUAL

questionnaJre descdbed
tOI .sc.r\ria:· m.ar~ellers.

blfwc£l:y1n ihis c-hapter. Comment

·om It:hellscrul.n[ess 'OflthJS ql1estjooHaire

2. Desedbe the Ga..ps. Model. Apply hmo My oneservice indus,t,f)' olf your ,ho·.ice. and. eX.I'~ain how ij!1,' cotdd. beusad til plug the possible gaps: in~erdoe .quality .. 3·. Do Cl!I.S[(uIDsod plioduct'l stand Ih~,tl,'er ehanee oifrapid gWIWth. (rUldl3\nal. 1:1l(leriQ3icionmO. Of d!1l sm:ndardiscdprodltu;:ai~ Elu.cida~ with ~MIlP~es &a.m. rendings, 4". Whal doesrervi,ce [ieoovery' m.mn? 5. Wotdd. service gu;arnlllti~;h.eI.p in 3tu3aing custeraers or iOfet3illing lcustomers? Wh.f. or why fLot?

Copyrighted material

I C;Jse Study

1
IMr ·JOhrn,s not the only PGfSiC!llillwith i E!iKperionce:s. Of late!, there ha,ve been Q,ulm Instances of better servIce at IPUbllcsetf.or ol!Jti:el;s thWlllths, IPfiiy,atsseotD'r ,ones. Wiha[ is lilaplP6nlngl'? Are Ihe pubUc sector g:oingl the euslOli'lill,er s:ervice way s.rtd priyate, the other Wiry? --

'"Things 'tan go back en the, ,olilt 'track"'-lhltlulght IM,r ,J'ohn ,as, he came lout: from a wen NI,put&d ,and ISO cal~edl"customer fooussedr pilI/ale ,seol,or bank., II was 6:~II p,m wl1le,11he IJlIig:elllltly ngededllo make a
draft: ,and dlsp,aitch It~thll1l an hDur" HelITlad a v,ery Ihi,gh (lp:il'lli:oll1l aoout th:s newly opened brllJ'leh IO'f one of 11'1,11' muclltalked about p,nvale :sec~Qrba:li1iks:, The : wo:rkingl !hours wers: till 6:10 pml. But he 'l!h,Q'Ughit, Imlay IbSI fhe bankwo'LI:ld not I1SflU;S, him. Hie 'w,anl

such
af'IJw balnk

banks
banks, it

Ins~de conflde:rn~y ,and requ:es1etilo ma~k:ea dr,aft.


To his utmost slIrllnisDi, he I!'eoei"e:dl Ii tlet "no" with '!:he exp"aJilat~Qn ~haJl:lh9 workilr:J;Q 110iJI,1iS, eN 'GV,9tr. w Hs,lell dismayed ,Billa ,came Oll~: ottilie bank: dlsapPQInted,. SpoUiing aseculiUy 91l18!l'id :$,1al1ldl~lilg II!Uaarby'"lli1e!UlIelil enquired about allY olJlfler evening b~anche\s ln the vicInity and w.astDld about a pulJ'liC :seclor' ban'k. a. few Imeters aws.y •.The, secur~1y glilard '!.houghl was loot SIiJIre' of'ttilewQrlklng hours, 'the, 'I,vening In.9J'1ich. Mlr John was 'very :apPl!ehenslv'e ,aoout giolng ~Ilere" es,peciaJll:y ,after tIIis bitter' lelllpe~:erilCe, ,at a. pl1aoe he 'trustedl• !H'owever, lila ,o'ecided tota~e'lhe' chanee. :HIe~alked :afelw :meilel'S In 1119' direeUon oftn", ba_Il'k. He If,,'Unda Ib~glIl,ghted

Why is; 1.hrs sulJtWrashift. 1:atin;g p!lace?' ,Andis destined to, be a II!angr-lem: tJrend?

la~

s1gnboam showinglle

nB_me

and pClIillllill1lll.0WI1Jds

the looati.o", of Ulellbank. lihfis ,gavElI Ihim a lilnJElIhope about 'lili1s,llIs.litl<,being still epsn. 'Wslsnteredthe I l!lank Bfldi rnoleol that the 'woliMng hOLIlSWEI'1"e '~iU 61::30 pm:
nQW 6:50' pml •. He CfecideCill10 lmal(.e, a reQ,u.est ,am:thel draft cOllnter uyway'. lQ hILS'gmat Sl!.IrprisB'. 'the pe:r:soll lit 'he QDUniEr ga,va' him an ill!l!plicartioli1l fomrll to fill up .• M:r ·J'ohn w,as· Ideli!!J'h~ectIH'efillea tilE! remll qulcld:"t. H'e forgot to fiIlll aU 'liltl.EI !QoIUmns.lllilstead !l,t' r:elumililgl 01101 form tD M'II'JClIhn" Ina counter Ipe:rsollil 'filled 'llile lil1lcompls:teoollimlls I1lmself. He tllellil r,eqlJested Mil' John tiD wa~~ flOr firve mlj'nutes ,a!'I'1,~ ,OOllecttthe, drafil:from !liIi1e' irvery colmle,lI'. B~ 6:58 del p:mttTle Draft 'was Il'E!aCilIy. Mr~Jolhn '~l1enlhalnikeal.he person 8!l1di,csm.9 out He 'Was lpelr:plex:edl. "'How· can a Pl:.ltJ'l'I'c :sectoll" tJan'k 'trealt: 'Iihe'ol!.ls:tomers so' a'ffe.ctiol1ately1" Olilllihe~"1fi1er hand,,'1I-11!lJIw ca11'II . soa call'ed CI!Jst:om.91' C9l1tl'lic IPliiv8its :sector Ibank diil:chlhe' c:uslOIl:ru;tr ,at his lh:ol!ll!'·of-:need?'"
l

n was

As ,8 IreislJIlt IOJ'~iheref,onns· lim llhe199OS. Ihsi depth ,and 'INiclilh ,oil the 'nnal'leial :system, lill Ilil1d~a has impr(IY,ed, lin~erms of Ulel In!.limber ·of ~inar:J:ciaill instruMents .and ~he, nUlm'be:r e,l' acl'iv,Q pal1ieiiparilts: 1.111 Ille, ,marklet Banks COnUI1IU9' to' dominat.911lle (1inMoirai ma'rket. 'WUh a Imamet share 01 EUOLillldl,66 Iper ,cell1t iin ~Jle' overatlllli:nanoiialassets. Tille fOmlsJ bsn'ldllglsyslem In II!lena clO:mlprlse;s, tlile IReserve Bank 0'" Ilndla,oommEl'l'Cla'l ban:ks, ireglltN1ISI,!1 rulfai !banks and tihe coopam.tli'i,e Danks., Th.9sotiledLl:lod ,commelrclali ba:IilIi<S (Sees,)1 oom~ll1se IPubJic sec~or banks, ,rorelQI1 ban[ks and pn.valt!' seotor banll!cs. Ilin Indla,Ule, Ilnal'1clalisector I'lef1orm· p:r>ogll'alflme was talig:etted at promoting ,a.diver:sll~ied, ,smicietl1lt: and competliU\r'iofinaJ1lclalseotGr. WllhUilElI objec~iv,e 01 improving the ,allooative emOie'~clY'of the avail'al)le' f,SSOltJrCeiS" ;Increaslng lhe l!'etum 011 Investments, IlJld facilitaUngl ,growtih hil! the! lies!l! !seotor oif tlhe, economy .. lllllel focllls; olfinanelial Seel!Dr mfD:rms In, :ll1Id!i';a have, been 1. Modifyingl 'I!he! IPo:licy f'ram,9work (re:m.o'Viingl operational (:ol1strslrnts) 2. ,lmlpr1l)vJlI1g1 thEl' fi,na:ncialls;trengtlh andl

oredlbllilyof baflks 3" IOrea~nQI a oompeliUve, ,anlotironmemt 4,.Slrengthe!ntl'1lg 'thelli1s,titutiolilall 'frram.ewoi'k.


:1'81'89

Accessing lca;pital mal'ik!et at low' costs, in orOsr to addiltionalcilpita'llw,olJlliC1 Ibm a challenge for

Copyrighted material

Iblinks. d'u:a '01 the need fer a Ilarge tnlJmbe;r of bants funas· arnd:the IIIOW jnol'inat~on of the ,Gor'rlsmmisnl 'to, pmVtids f1urths'r suppo:rt" The ,(3,ove:mmenl does l1Iot Intend 10 infuse ,Bd'(U~lolnal ,c:;a:pila~to support the gll'owtl1ol publi'c sector IbBJrilksi. The Go,vemmenl: inrl9110'sto lnm!uee its Bquiity stak~es to' 00: per ,cent in 'pl:I:blic:sector balks .. However, iit Il1Itends,to re!aJn Ihe IPubllc sector ,character ·ot''these il:llSJlks. The rstoeil'l;, IPl'iices of pu:t)li~ S$(ltor bSl1Iksl1ls.Ye ,8 IDw,sr cU'saculIll1llilfilg Inr~ll1e, capitall maJrl()st as ,compared Wfilh 'Ihose ,0,1' p,liwtf!ISOOlor' baJn'ks. due 1.0' Hite pelreaived lil1leffioiency. lower producU'vityarndl I1Ilglil:er NP'As, o:flhe former ,categ;ory of tJanks" Hence. tl'aiisin.g ad~ditiona.l rC-a:pitallalloW' costswouldl be di'ffloo[t for 1hs existing manag:eme.nt of' pUDlllC: sect.or banks. Inl 1I'I11ia,~he depo$~ts aOOOl.ll:nt~or eo per ,cell1t. D'f ~h:a resour:oes 'of' :scfriledl.llied comms'foial !banks. IHe'lI1oo,. raising few cost ,ClepOSnS is criliical.rortnel pmfltabUity! o~!banks. tn India.~8 hC:nlsehoki Sed.Df ·accol.lfilts forlhe ~arges1: shar:e in gross domesUe savIng, at 2OrJj' psr ,eellt of tha 'gl'iDSS Irjo:mesllie product (GDP,) (at eurrsm markel:prill»s),In2~1.
'to, ralse

terms o'f deposnsBnd assets. lme oonmpetl1'ionhas iinoreased due, ~o'~liIe aggre.ssi'l.iieness of I:Niiy,ate sector'barnks, Ion the, dapas 1s,siclie(by ole ring better s9I'Vi'CBS,like 1fiee,AliMs)IBnd public SBC~OF' bal11ks 011 the retai'l aSiSB,1s slide, ,(by offenll1l91 ~aw JIi\~eIFB'sl rates). lhe ·forslglil bal1ks wUihr aeeess to IBlrge ,capital oould increase their focus, ,on :India. dus' ·10 thielr ,abllit.y ~o incrs:a.se' penetration In the metropolitan areas by ,expancl:ing Ulrough ,A:rlMs. and' in OUlElii cities IhrrDIJIQ.hthe IN:BFCs ((!IlJItelfor Uta cnstri'butlon 'o·f Ipr,Qdli.lots (liIiIIan,y foreign banks lnerease ~iheir Ipr,es!snoe, ~hlioI.lSil'l1 IBfOSi havillgl ,8 N preSEln,ce, lin more, cilles lih,afilr 'UlIEli'r I:Jra!nch netw,orl!c:. in orderto inorease, reach roll' 'the d'iiS1ribu:tion 01 trE.U:a:il asserts).
hill

Ind~a" 'Ihe ,Cillsit~liIoUon ebvean the providers ,gf b

111e ,oredit ofllake has, :slowed ,d:own" pal1icul1al11ly in the past ·~ew' y,ears. ,c:fue'.1:0' a ShlW-do,wlI1 In iindustll1a:lr prooiuo1:ion. lne ~emanCi f'Or Ilcmg~'lerml fUI1ci1s has been [law" due, 10' the' tlack o,t:new Iprojea:s illi1~Ii1Bmarnufactuliil1g '(tr,adi~iona!11 !Capirf:aliinterilsive sectors" sucl1las steel!, teixtilas :QIIT!O csment)1 an,eI iinfrastn.u::tulie sec~£):r's. Ne,w seMoe~o'l'ielilted sect.ors" such ias irntol1ill1aJticlI'n techll1olotry ~IT)II.

yalf~ousfll'll·l!lIIIcfal !u!!'rvfoos has, reduced" wah the Iiba:lialisa1'iIHii and ,der!8g;ulatiol1 of Ule finsilciia' sector sUlce Ute 11'9S0s. Ba!lI1ks ,a.l1d oevellopm,enl Finsliliciai Ins,tltulkllll1S (O:Fls.)1 hili 1III1Id a have beeJI permitted 10 'oombinel ~tradi~iona~ ba:nkllngl ,and inves~ern ban'king ~uncliiiCilnsil' wUh !cer1:aln mSltrlctJons. In India, DFls ,are belng'cJ:!'ooalliO eorl'~e:11il1to banks ma:n~y due to Ute higihcosts 01 lUlld's, illilbiUty ·10 ~liI.cJeaset'e&btlsedi i11COm,9,. and the' iracl1e:asingloomll·eli1~l!oninthe 'ficnancial market. ~n Od.ober :2001" 'tillS boalidsoj' 101:011;,and IOU;}I Bank prriopOS:fJd 10' meJige"and IIP,proachud RBI lor permission ..The Indian bankingl iRatJIsl1l has, been cOlilso'l1daUng 'gra.d'uaUy., The Irra'llol'lsle lor Im.erge:rs and acq:uis~tloI1SBlre!
r

1T-f3ftsb[elliser¥,ioes, ,Si'lliid medila, 'requ~rle oom,paralilloly Ilawe:r capita~,. Th,e emerg91i1:C€I o~


Ihess :sectoll's has, farced l.t1Iebanking :&ector ~c -" 'upgra.d8'theS11<ills reqlllillsdfLoappraise iIlhe ,slred;~ quality of :Ihe. ,Qorpofiates (as '~hese' DorporatelS! Imay 111:01 be ,ati:l~!9 to ,oHsl' !BD8C1 usta ooll'ate I'all as lrequir,ed bV :atl'31cnUona:1 b.anlkisr). Intilanl banks have .8. high leve'l (lI,t NP'A$. which fomes Ibankslo linoflsasel IPro\f~siO:l1ingand reduce the caPim'll aval'labl\e lor g.l"Owtih!. H.lstoricaUY,iI NIPAs ,(!lIthe bankilngsee10r hia,Y:e been Ihlgh dua lo di.rected l!endl!ill anil a weaik, BIP,Pr:aisallmechallillsm,. Com\pe~i~lOIl has ii,liIcrsasedi :slgnificanUy In time

1. hlcl'ooslng sizi£I. ~nroKie;r 10' iilchevs a cril~ooJ mass 2. lillcrE!'i3:s'ing e~raplil;lcal ll'elseh g

3. ~nOlieaslng aocessta, customers 4. I!..eVler.aging 'Op.l'J!fH1lUl'llities to cos/is.

erosssell fili1!anomal lJ:fOdl!.llets: s. IR,acill.lcl!ng UilG,cost of deposits and ,operalln.g Ilm,:EiBJn bSJIiIk:s, Ipartl:culla~y thep:ubnc sectOIr blanks,. hay!e a hig'l1 msrA,pO'WGtflbase and low prodruc1ljyUy. This iili1clI1eilses ~he loosl. ,or ll1lte:rmediation and f1G-stFicts,their acUity 'to ipr,(lv,icle ~ow 00lS1: ·funds·liOl thelrous:tomelfS, Q've:n In Q, IloW'

'ralai! :banking segment. inll1e' past two yelsrs, In

Copyrighted material

74 Sendres Marke~
,lll1mlallion :sce.nall1io. High lmillillPOW91f [Io'ads, tiC :shrugglng[ 0" wo:rk and ,d'eo~ease In aocol.llnrlabltny which ill itself is '~a.L Foreig,lIl banks andl n,ew plliv,atel seeter ,Dalllks have a.d~opted IT lin i(~Fdelrtos8rvioo theii" dienrts 'be1t:e1l' and f,asler. and reduce their cost ,of delli'very .. This hu,forced the public sector banks, to match :such service :standards, In order to retalln their ,critleall corporat,s, and retaill clients. H~8nce. public saoto'r banks would need to incl1ease' in,ves;lments lin 111ft Ipro"/is'iofiling for 'VIRS. and inculT Ih,e cost 01 "straining emp1oyees, lin 'Dreier ~Dlatllab~B tihemto, use thQlecl1nol~. 111iI1 2002-03, Iprotits e ba,nks,are expec~ed to increase maLJginally 0"1911' those' in 200 1..02, despite lower nonlnterest 'income, due to (he growth in the 'yo,lumes 'of' adv,ancEts, and inllesh'nen:ls" ,stable sp:lI8sds, neg'119ibls gllrOwth In the ,oper,atlng cosl:s andl I'ower provisions ,and contiing'encies. Thel 'Whote' ba.nklng Il'IIdust:ry has 18k.en a U-Iurn .. 'The eo caJIled ~ablJs'ii (l,f thel cus·torm'Birs, are, now caillngi Cll!Js,tomem "bal::lu"',.. ihsi publiC sector Danks. atta,ched with' the, gen.era) Impress.cHl c,tl being IlnaHlclent. wltitJllow productMty and hl[gl"llNPAs [ha,va Inow Ibeen foreed to thlliow these aw,ay. When the customer reool,ves somethingl 'poslUvs, against Ihis IllegaUve ,ex;pectaliollls, he becomes d'e'liigh~edl.,This ils what ils happeningl with the clJlstomers 01' PSBs '(haM d.eiys,
1

hs¥e truly mvol:IIJUonisea bankingl In India. 'Their focus on t;ecihnology and ,customsir conve:nlenee has. brought about,El paradtgm shm in the bankiin.g l:Jus~ness. Ilnd.eed, Il11ls has now 1'001 a: Sjgn~ncal1t: to, change In tnSI oriern,taiion of the pubHe 99CtOl' banks, as weill, as, theiYtoo, beg 1'1 te focus, 0111 shareho dar v,aWue,cr:Qatioln and cuslomer s~tistacti:on. We at ICICIIBank ihalls been at the 'foilsfront 01 this chang,s ,down the years. Our Sbll'logic IInltlaUves, over 'l1a yeam ha.ve led to ,our pOSition today as ~hel seoondlla,rgest balll'k iin Indiia and B. lea.dlingl pro,vi.der of bal'lki n,g land alher' 1ill'll8,ncia.lsalVi'cBs to oo~p!Drillte, and retail clJIs,l:ome'rs. OUII' pioneerilllg n.ew ,apP'lI'Oaches, to banklill1Q ,and ourtoeus on ex~elndl'llg the l:vailabil1ity of teclilnol!ogy-driven COlnvenlien.csl to ,8 Jarge customer base hailS fiesultsd in Ira,pid lbufsin955, growllh.

lI

We have acnlleved laaderSflip positions 8_CroSS


dh"srse bllJlslness9s' 'rom r!etail clredilt 'to, Ilifel insmance,. We Ihll,vs oompl!9ted 'OUl' 'transfonms'tIonal change, 'from a slingls, product ~inancial SQMOSS coliJ1ipany'to a true universal bank. 'Going to rward , th·s Ikey chall',enges lor the' ban'k are 10
j

mai!i1itailn iits J'eadership positions inti1e'SG DUls_nesses and expandl and deepen iils Ipene'lraUon

WUh ,s vast Ipo'1l'!ll1tiall market ly1il111untapped, .he' Igrowthl in this segment has, beentrel11.en;(JolJIs. The' l"ma,le seder banks with thei'r slileer' effiCiency' anal customer focus, a.,e gr,oWiing at ,SImuch faster'lrate, 'thanl their iPublie counterparts. Ills *h'ls lI'ate 'of Ig~Dwth :sustainable? With oom'petUion increasing alii ,around, and sp,llIad getll;n,g (Iec1'ucecJ"how ar,. Olel [banlks, plall1llning to sustain the, levell o;f clJJIs:~omer :sarvtoe ofl:EI'II'6d7/' "'.lIS the cuslom,e:rs, beingfoilliad ,agaiin'?'" me,aning ""lI'oviidiing ibette', ielVic9' to ,capture, thie cyst,omsr and oll1oe In,the same old story"'.

ChairmaR'ls, Report IOf ICIC18:ank (200'2,~OJ)


"'In the shari. span of time thai they havEI been in

exlstenoe, ~h;e 'Iea,d~ng new private s.Qctor Ibanks

ln oths'JS. The bank willi also oontinue to foc:us on PliOscti!veliy ,ad'dressilng 'the legacy issu.e o~ distressed Idlebt. ,and ,oparatDo:naUse i(ts :slra'llegies in this area iin coordillatioin wnn O'~heripartl.cipants in Uilefi'l1s.ncial system. Whiile, w,e ha:vetoday' built st:able businesses lha~: w,e believe, wIll deUver suslaJnabllev,alueto 01.1111' stakeholders, Ihere are also many' e:xcit!lng opportunities for tudhell' 'growth. The' banking sectOIl" Ihas 'f,ooussedllprilmal1ily on the urban segment" wiUlI rural ban kingl beingl viewed as ,B.fieg.llilat,ory burden. We belilevEI' '~ha.1 'r;ur,all ~Inala r'epresents tlile n.BW fmnille II' ~n,!bankill1g" oHe:nnQI a 'VBSt., IJfilr.pped miluket for Integlra,t&ilI t8c:hnologry-driven banldng and fill!allilt:i'al[ services. Aslhe economy grows m.ore riesiUent ,and fegaoy issue's, are resolved. ~he Indian bankmngl sector Is ind'eea entering ,3 Significant ,new phase, We believe that ICICI Bank is well-plaoed to capjtalhi'FJ '0111 emerglng Op,PortunitJes, as It reaches oul to new marl!tsls 11"1 IndJa and the warl'd,. WQ look 'forward tOI the n.illm€l wilh ,entimsiasml ad hope.
OJ

Copyrig te mate ial

The, InJportpaints: a II'OS" Iplcture, aftha ,perfOl1118floe of the' bank. It lSi prely clear 'Ulat the bank lsgrowthl ,oriented. lh. depe:ndem:e 011 t:acllmlQ!ogy tCl, :SI:N'ei Ine ,cuSitClmer Isln,oreaslng ..The ,are, the do,wnsfdDs, ,01 Ul~S,4£MOOSSWS 'Dftpel1ldsliiOOI on tUDhmllogy?' I's:naltha ''1luman moment Imlssll!ilgl? 'Wrth iiilllOl'easlllg dlslanoe betweenttlleollslloms'li'S ,and' lb.aJ1Iks,bam!!:s ,9re l'ooslmg the h!umaJl1J1 IOlllch 'Iha.t ,can diHemnlliata~liIemfrom thel'F oonmpetltlJ:l'S. Inttlle long '~enn!,Wlne:nU1e .NBrka. Is; saturated land prodiuots of 'vanous, Iinandal Iinsmutions: beco.e indrstilnguisllah:le hom ,one ottier I' ClIISlome I'S will become immune to' Ule bank ,and le¥el,of ,customer
,oustome:1'8 Bl'e, baingfoliCed 'to' move ,O'way '~rQmlthe human SEIIrvfoe pro'ider ,as, Increases, cost. W.hat

grloWittiJ. the numbe,' of employees r,squirted 10 tl1andlle la,,(I., mJmHr 01 customers, Is al~so'gl1Ow'ing
f,8S,I:. WiI:1e:n Hila lrequirem.ents 8fi8'smal:l,. the

se'laction prooess Is rl:gol"Ous ,and '~hG ,qUallity of Ipeop!le inducted in, 'thel Icompany is cl:nsijdered good. IBul. wihe'ntlile reqlJlreme~t: Is hlghl 'Ule lil quantity tendsto,'ov;sr:sliladow 'q,uatity. nis, beoomes
i

the Ul'Ststep' to dlsastel'.

Tne em,p!,o,Y1ees make' or booak ,an organlsatlol1l. ''''lHIap;py em,pl'!!),yees, mean [l1appt~' cll.Islomers :anCl wtJI'ich iin U..Im mean 8 hap;py OJgal1jS8~iQn.•I Wirth O j:ncr,sasingl slizel of tlite 'COmpilliJl)!','!hOi p:I'SSSlnSOn the 110t a'ol:eto taJ~e tare ,of Hs ,emp'IOJeEls~ ICICI Barnk is '·acingl aSilmllar sfwarUOIil wherebyUile em:ployees, seem '~OIDe,owerwm1l!ced andllileiir 'dissatisfaction lis, :vllsibre :In (hall' changlngl attllude, 'towards clUstomu'l'S. They al'el~al'get dnven,lfId to,meetthemget ,(whioh Is, il1lherel1ltll~a slllOrt~lanm obJective)" Ole !;' fOFge~Ine basic tenets: ,cdsent,Joe and hence, 'compromisB' Ol1'II the IOlilg·it.EI,rm goals,. IEvenl '~Ilol.llghthe ,chaIrman Is;gunl!J ho, about the perfOI!il1ilMte 'Ill the ,oampany, fhe, changingtim:es
l

,employees [nclfease and 'the origanisatlolll

itsel:lliS

loyaf\y wm !come down d,ra:stl'cally", Ilm'sg,lnetlile efforts tha.t wUl be Ineaded.o, poach, customers firOm ones competitors" IIIiI orderloacl1lleVEl,~liIts"t:ne tbanks, may once ,Bgain hav,sto,tB!ke,Oile Ihelp of the "human mome.nf"" Moreo,Vt9r [In 1'!leija,U1Ie lime wl1atllU'lare wlH Ibe eXOG'ssi,vEI' deipelilde:1iIOO en teel1li1oloQY is,fsl' oH.. Thsl'iEI,fol's'. intlils mBidil.llm, teml, humanllm,OAlBnllsa Ibll! ,oornltriblltof' to suooess, 111ls bank has :bee:n Ig row Ingl al a Iremel'll,d€il:lJs, lpaca. The ,qUEtstilOIil is" istliliis pace sustaijnall'le? 'WIlla' will I1a:PPs,1'iI to ,c~stomsr saNies'i" With lliligh
l

demand a lot '01 tninkli'rlgand

Introsp&Ction befD'JiSI

thebubblsi of growth at the 'Blpe:n:ss, O'f IGUlstonner


SBl'fice becomes: u nSlJstainabtl'e.

'QUIS,TIONS,
1. 'W1U~liIeseN'I'cs' IIBvsl 018"901 by IPI1i,v,a~e nci pub'licbanks, 'reacih equllibl1um? a :1.. How will ths:y diHerentla~e Uismselves 'froml each other? :1; 'Wh:atwill be, the Im,paet alths, growing :size 'of the iballk on clIsmmer ssrvi!ce bo~h in~h9 medium"8JMd 'trite IOliLg~t€lITin1' ,4:., How should! Ole company lale.a, care' of ClisitOIJl.er dilssol'llance? ,5. How ,essentiall Is 't&OlilAologyf,or ,otlstomersatisfactionl'i"
l ;

1" IPlliOweBS Da!abase-For

'OI1la!i'rmalil·9~h. IndustllY Riepon.

:2" Cns; Infao; ~1i1,dUBtrr' Infol'mlsll0.nService--JFor

a.

,Business Stam1s!d......;Bank .MnuaJll 2002,

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P~oflt

a ILoss, .Acoount:
112 mlns

Summmv/[CICI Bank Ud.

.r:umBle'
IlliItEl'l'est Iinoome

346,,'1'11
11,e~g6 1:9J52

1:2:mths

12 altha

631.94H)48,.I09

335\.5,5
2,(RU; 931.,89

,443"U;,
409.7'1 195.23,

,lni\!Iestmelllfdivide:1ld1 Ii:Iloome Others,

12 mUls 1'442:.48 686,.41 555:;12


:200.35

~2-mths ,2724.73

12: mths 10('.1171!.83

2151.98,
'0 572.8

9868.05,
109.42

Other Income,

[N'DfII~reoumng ilncome
IEJ(pe:ItClUUM In,1:arast 6Xipended Personnell 0091: Prov.:f'or 'Qol1t1il1gencies,INP,A!!Bt.O. InislIliaJllce, [pfJamium

00.23 10.19 Q.72:


1

0.02

4.84
425.:5,2 18.119 S2'.9, 2.25 48.,88 0

,0

20.26
831"'67 5,' .1" 63.55, !f)'~3,7 248.38 '0.1 3 263.:28

18,35

1,6.53 11'1,.95

1:294.Sf!iI 6,10.38 1,833.75 '1944,409.02


1474.'98 25.1,8 tS9a.B6

1[,85.46,

688.94

1558,.'93

1,2.27 '1,9.66 46.102


0 B9~07 11 4, J

36.:37
7,9",5 3.69
!94..59

IOllhere~penS9s,

141.. 8 1 :2'3.6'1 14.19,


399.85

N'on~l'ieeuml1lg 9Jq)9115eS

Pro~ll.sno8_a
PBDT PeT'

12JW·

14~66
444.23

'6.13
1'928,'9.2 5QS,,!14 "'422.98 :2111•• 1208,,'1 8

Deprec~atjon Tax IllIff),YlsloliIl


PAT A'ipmpl'iiatillJfI ,of'pl'ofiIS, Dividel1lds

1,8,52 7,0.55
50.22

20.M,
11.e5

111.5,.,e8, 22:,3, !9S.M

U 158.. 5, 1,32:.82 27.0'2'


105.3

25.84

eass
21 .78

SCU)!

36:.76 226'.52 '815.42 161 .1 111:2.59,


48.57

64.1[

380.1 3
.258 .• , a

8 121 .• 3

Aeta:ilned eSlinil'llgs

32.31

41 ,·S,7

'n,sa

21.41

48.51 219,1S,

51,•• '69 68,7.49'

BrM.ol1es II eo (~Nos.:),
,AJM INlel'Work ,(Nos.) TotailNo. alA-occunts;

395
546

Savi:ngl Bank Accollnts P,ower Pay ACCDunts


IlntlnityAccounts INAII Accounts Ant cams
INa'."D~'De.mal AomUlillts

3~700",OOO

11.800',,1000
:300,1.lIlO

,essjooo

!840,OOO :92.,500 1:..47Ii!,000


295,000

ICredh'Can:ls
IDeblt cards

61,:1)00

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80

Sennces Marketing

In,tligrated C:ase Stu,d:, 1: UsidSS,EB:VQUALSca~e: The lOldia:n., .Health Calc Industry·

lis India witnessing se:Niioes:?


)

,a II"eiVOllfon illl IlleaJlhoaro

[Fha (ollowlng stu~y was condlilcted III Oe,lober= December 2003 by the s.wents ofl11lllolall Ill1Sti1il1lta ,of Manapment, IKozhlkode,tluClu:gh primalJ ,clala 'co(ledion'" tQtng~he SIEIRVaUIAl, &ea~e,,(cjiscussecl

]
UTIU Iposslb~le 9IXp:tanaUons, lor Hills plilienomenon, we' :shoul:dl 'UI'S! examllns,ltlUl economic: faclors, fIi1al make India slJIcll ,BJIl'8kciting marlic.el: 'for liIeailihcar:s' seNlcas. Aocolf'dlnglto ,a,DP forecast~" tihe' 'orlowth 111 '!he .silo:ri..',teml iis 9:1_peeted 10' hOlier arol.llritd r:;...7'per OOI:lL But!, for thesholt"ito-medill!Jm temn,lhe projec1io.Ii1S; are ,st ,a 1,0 per ,cent marK~maldl'llg Illndia t(~li1e'cd' ~l1el '~ast8s1 growing '
TOI

Ilook

al

In Cha,pte:r2 ea,rUer)l. Th,s ,S.IJUdy covers various upeets 'of :5E1:Nice. Ino1udilil.g lall1!Qliblu5 and
Int8I'11gltJles.. ThIs IllI'us'trateslilse 0" ctls,tomer salisf,adiolill 1119a5iUrement: ooaies 11111U18' healthcare business, all~1 a~so 111lJ:stmtes,tJ1lelm;p()'I1aliloo 'o~ ph·Y,5ijCal surroundl,llgs inl Ihe, overall impressicHillS

U'il;at a ,cLilistomer 01 a, service


[ .~.SUMMAlly

carries,]]

economies.

PrJmarlliy' the :st~cI, ,alms to 'gbJEI' '~he, readelr ,BIiII ilnsight IntQ the Im:Uan health seMcas, fmilJl)shy'"The, rece:nt IFeVoluticilni,and 'gRl,W1h ,ot' tti'le Illl'Idustl)' antl~ne enllY Iilf Im'BllIr, large, !busll1ls s! houses Il1Itothls QOmaiA Ihas uSMredl :rn a ,detin'ltelranSiitioo ofUle :stnlC1ure ollie Imllli:J1sU'y' frorJIl iits tiadhiooal 'outlook •. Dlffere~lliIodels em~ll!!Iyedl tOLevaJlIIa!e the Industry ,B1I9 B:I'901 ,oove:reCi il'n'0191 lirst: partl'on of UilElre;pcnt. L
L

Sllnee heaJImoare rs:cle,pelltdenlt on. mel Ipeop'lLe served,lnCtiQ'S hugel IPDPU'atfon o~:a ti:l11~tonl IPeopie
mpf8se:nts, a !blgl 'lD'pPorWfII'lty.AI 'tllel samel timsl [tIl{Iia.If1'QS i91v,ary :1:owd:enSlty ,of dOOIOI'S.Th.9 00lI1lU'y

has· ,ani, 34doctors,~o:r


L

liVelY 110 !,OOO peopte.


1 1

SeeondIV.II'I.e study aims to ella:lua~e tneservice 'DIEned bytwol hospital's, rn' Call<;ut. .A,ant 'from
looking at dlfler,erill aspects 01 U'Ie,seNice. a SUIi'lle)' has, beel1lloom;ilucled and ,dala gatheliOd luslng the SEF4YQUAL scala to measure the, ,customs:r pemeption ,ol,deUvered qlLlsIity.,lbs IiIndil1gs of 'this sunrey' IllIsy,s Ileelil' PfDvtd'ed as part 01 tt:I'Iis ~re,polil
l

)
[m,dia's, he'shl1cafle sectol' has mAdel impressive stl'iCiles,n ~a, rGalnl years. It has trpnsformed 10 a I Rs, 1,000 bilUDfI iiru:lustJy 'loGa, ,and Issurgl'liIg ,a:Jitead wi1h an annual glrowll1 Ifals' 01' 117 [per cent per an,nunm. 'Dis iindLllI!stry iselC!peclted tOL gifOW 'i£ilL IRs 1,862: b11l10111 by 'the fln8:1101al ye,ar 2oo5-06L, 11ler:efom. a. qu.eWon. af,IHS q,uite IlilatuRlUy! "Prqtuedb.y Almn.Kmn21 .Mathe:w M Jo~.

Oompa.f8dtoUlI:s. tho' US: hasL 2,.:14 1:1' docteJl'S per UJI~OPO.Trhel18' is 8, huge shorts,ge, Of Iho.ltaJl b8ds. Aooording to :8 Workl He'ahh OrganiSation (WHO,} iiapon Inllia ,needis to adt) BOL,,:IJOOtlosplta~ lbeds each ye.ar tor the nexltfive ,el:l'&lo meet the d:emands 01 its 1~lluLlaUOIiII. The, :stalistles, also [0010019'U1allnfant lIIol1:aJ~ Is amongst the In[glileSI: il1ll IlndIa., ()n an 8vera,g,e,!-1:4 ,oul 01 Oc',","8:11" 1.,000' C:hil'dMII1I,disl. 11I1isfi'gllJriais:just nine irnllhe US, and SI' lor Thaliland.imhel llife expectan~y 1l1Illndl1a, amongst Ilis, the fow(tS,tal: 55,.5. ICompare Inls wiii!ft 'U18 Unltedl Stams &1:75.5ano 66,.5,~or Thailand. ,Ghleml thesel eonslrailn.ts.the demand SWlPlPiy gapl Is: widening eiSOOIyear with hospitals, inl Illndia mlilflln!1 al 81)..91 per' cenlt: occupancy ...Howevel'. :ssfN,ingl I'ndla. has Us: OMiI chells'nges owl'l1g 'tOI tlile Ilrs,a:~ Illllillan"I1.Ir:a:11 dliv~d'e.
j

Thel R.uftllittea'tthcue Dum.ln Da.ta inlha, 'pu'blio: domain Ireveall n~at.InlteL are S8VLSflS dlsparHlQSln dlslirib:IJUo:n 01 healD'l.care II'B'SOIll1lC6SaSL we!I~las !healthl outolJmes QQI\OSS,rural,QndllllfDa1J1 areas. TIle SiUISt!;OI1 ill ulba:1Jl Iindia :Iis clos€I'1i to dleIJeloped counl!1iY av,aragls".wheftaas 'lla rnramscanalFioin India ils 'one of [he' WOI'S,t in the world, The ,dls,parlt,y 'Glun .... ~, HarislDL fiodch:r and

Than.nry',.AshiSbl ~a.dlMuktidl. C-hiram:mRamaswamy"

Copyrighted

material

1111 IIlf'rastruotu 1'8too ,is· ot)vious wi1Jn 'llle, differel10e In QV,anatlllity of hospitall baas Ileing as, mllJlclil as, 15 Um:es,less in mral areas aJI'ilei public '9X\pendmtulI'e,s: 7 I1INS '~ess.. I'n,,case !Qllhea1ttl 'outoomes. U,e ulman areas do IiIffBIily Miee better than Hila fUlI'aJareas. '1111'>' critl:oallfaotor liIere iis: the IIiI,Yestmentof fe'so:urce's lin riUral and uliban ,Slress. Th,s' urban ar:eas have' receht:ed] felatively adequate' Fe1SOUIlCflS overthB years :lfiJ.dl hen08,llie ill1~r,asl1ll'u:clilJm aJiI.d faOllllJe·s trlere :are reasonabl'e .ooth In llIum'bers, ,a.ncl 'quaJI.ilati,vel~erms. 'lbel ruralll Breas halle been neglected! hi&toriea.11y sll101 the, mall!lin:!lIlilifS 11NiVie bee:n 'ornl¥ for p:revenfi;vB' aJildp:lIOlITllltiiV€l1 .sBINioes" ,especially falll Ur p:I'annl'ng and mOfe' recernUiy ImmuliI'lSB!tiOI'liI :&e:mioes.irnsl ruralilnfmstwchu9 dtd
,get a boost duringl the [llHtiJ, andlslldh M,VB'Y:esll' IPlanis und'erU1ehtil1imlJJm Needs Progntmme! .• But, sIVe:r

ahe, Ipubllo and' ~pfl;v,ale sectors,. fb), the budget ,BOO 11'9SOllJrCe, allocaUo:n, (6JI lie, 11IIa:lI1s,gamenl G~ l1eatl!ll sellVices;, I(d~'O'le,qualHy of care ,Imd the work. foroe~ lbe 1IJ',nlofili al1distate govemm:enls; haw embarked o:na :Hftiies of IPl\ogramme.s dlali acidressUlese ~ssues as, well asIa a.djLl!sl: I:leal~h:strategies:. its laehnl:ca'il par,ad~lms and appropriate 'technology. B!lldl to,lmprGvG ·the performa.Qcs' of its Ihealth lJ:rog~am'mElS~SOmeioli 'the major InitJiall,esl1'lad'e In , this rega~ IUl1ciude: " pl'Q,vfdlng) qllJali~'!lf care ,andwalik IOrlCa; " r'Bo,liiefilitin.g healtl1care strategy'; • strenglilfl€i'liling [I'rnka,gas betw_1iI the
Goyerl1ment and the, priiv,ate :sectm

pmicipaliltsin IheatlhcaJ'ls'; " Irncmasln,g state e~l*'ncl[tl!lrG on heanhcare;,


• pmmotingtli1e!

since the'rs has bee'li1 a decll1l1ngi ~re,nd In, new Il1Ive.s~tmenls ,Illil,d, sl:QWlinmdo,Ymof groWll iin ,expenditures, 1119 on'l, way lorem.edy ·tll1lsgr!lSS dls.paJ1i1ylies in .allocating: more resources for the health sector' ,at on.8 ,le\(,.1 'whIle ibringll1l,ggI!e2!.Brf 'e~)!iity lin d~stribli.ltionl'Gf msol.!lfces beitween thsl-lruMJ ,anal urban areas •.

in, pr&vEI.IiJJUve :81'11d fOn't()tIVGI services p as inl I!UlIOerSBrved ,areas,;


" Boosting '1,lJJalltyof Iheallileare

IPIii.v,Bta,andl INGO lPadibipatiol'll as well In1rastrudullO

in India: • health ifl,sliIl'alIilce and~


• p.rQ;t1Iil,ollngIn.dla ,I'IllIQ I. re,gi.olil'allh,ealtlileare hub

Rs. ,2',10001 lin th.s lat&1980s .•MOMO\!"r, most 'of 1J:l.em Bile Ipa:yffllgfrom their own ~ket ,and pref:er priivste 'S6lVices,lo !gov8'm'J,.nt one's. The niSei iin limracy faitS!:: 'ihel hfgliler II'avellsof Income;; ,and an incRt'as.ed heallh. ihe ,middle Income' group inl lhis, ,ut base ,constItutes a Ilargs, 250 mli!lli'oril'. The pmpor'UQn 01 households in~he low inoome group, lhas ,deClined firom .SI.8 per' ,cel1t in 1:990., 10 49'per cent IlnI1996:,
.Am: U~.e,same timSi.m.!91 Imlddle ,B.nd ht'lher inC(J'm,9 Incfieasedl 'from 14 ipEn' oonlt 1.0' 2,0 per ,eent~ in the oomespond[ng [pe:riod.
!g.rQliJ,pl has

,Srowthln Iha Urib.n H... llthcar.,S.,rvlce. Marbt Peo,ple·are ~pe:lldllilgm:orG11)1111 hea'Hllcam ~ooayin lurbSirilIindla. lOOBY'" a mid'dle~leyellliRanager with 8, fam:l'ly of fmu",s,pends between IRs 8,000 ,aM D~ ''','' 0001 S. '1..__ en II''QQ IlII~UI c- --n.<>'~1 ~.~ ,I."-~~ nl3 1""1----.- - -ear .11 k..a""lli,,"--' oom..,,_~ IIO.!IUSI

.En.try of Of:IIOi:5'ed. Pri.¥ate~Hea~t:btaf\e

Sc:rvilce Proividers

Ther,e are various gaps III the 11'liIdi'an,healthcare I market. whioh.. ,a;pa!lit:from tlile population adVanil:agel, ial.so Ipresent a lIas~:oppolMlJnU". Thera , teiB. ma,lolI' deal1h 11"1tins, IPl'Ovlislo.n 01 qlJlaJIity

awareness, 'II1K!!ug:li1tha deep penetration ,of med~a., has oon,~llibutedlto gre.9.lsli Q,ttentl'ol'l being Ipald to

liI.eaJth.cam 'ssrv1oes ,lTlul it: is 11111s 'gap' that the oorpofales aria loo'klng to reap' in. Ma,lo,
corporations mea time Tatas" A,PQ~lo Grou:p, FOlillis. Max., WockiltlaJdl,. Pilrama~. iD,urntall'il, Ilspa,t:" Escorts liIaw made slig:niliicBIII1.1 Invsstmemls, rlmsetliingl up stata~l·the,-an Ipriwals hospllals, in, ciUes iUlic.e Mu,mba;!" Ne,w IDelhi" 'Ohennal and IH~dar8bad • Usllngl 'Ibe ,Iatesl tethnica'i eq,ulpment and the SefYlOOS 'Df highll¥skillled medieal pe.olll1l.e~.lhese
i

hospital's a,re In a position tDp:ro,vi'de a. 'va.rlety or


general as weH ,as speciaUsl sl'Nice.s.'fhese

services Amon,g Ita kay' tissues, 'Ihai have to be iadrJressad ill'i


'!he' health sedor Iinclude:: Ca) the respeclVs' Ifol'es,of

alm, av,ailabl!ea:t

extreme~ly' ,Qompetiti:ve

13:11098, 'sncoulragirng p.aUBnts, IlUll 'Iml, fmm de.veloplililg, ,oountries" Ibm: eVBIl trolTil 81,11I:umDer' 01 developed ones t.o, conne to Indla~O;r s:peCfalllsed Ireatms'nt

Copyrighted material

Tih.9 reasons ~'QrtIilB ,entry of oorporate:s Iinto ·the bIJSII1BS90f '''manBgjll1~ hlJs,pjtalsars' .m'anlfol'd" These .actors IIlClil1.l:de: .. Arrlv,alof fore~ln lpalien~s'-llhei ,Indian hosp:itals, has starteoi tapplingl ~Ile' 'foreign

ho,spitals ,in the ne'xl. 5years-1IEi, in the' m,stral prcH,I'dijngs'liJper·speoiality care, 32 ,spe.cia:lI1y Iilos,!) tal!s 1111 ollllar I::dQi cUles. andlhe 11851: in :smaller lowns. AU of Ulese a.otiviUes Olri9 raph::U, trsllsfomrnlng India. illntoB. Ifieg,ional h,eaUl!1:c<lI'ElI hub. IOfg:l.nil:Sied~ H,e.altilca:r,e: SCfvic'cs;

p.aUeml~ [maliiet ,alildeaming

'f!o:relgllil!Bxclflang,e...
i

The initial ~argel has; been set Qinpatients fmmthe develo,pllilg1 OQUIrn~rl9S tmv 9:1[llng t'O devel'~ >couf[J.tI1[es, t~9a1mant for .' Complamtive prlicilil.g----~n'na. has an

framework
Mas;1 IOf lhe· oo~para~a tiJo.s'plta~ clilains, have star1:eci takiing efforts to ,adopt ·the illest lpme,ti:css ill hospita1 matna.gement lill1l an aH:empt.bJI d~ffEnenJUatel Ihs'llf $erv~ces ln the haa:litmcare ilnd!lJstlfY. Th,e mSlnagemeFlit o'ftliilese InstitILlIIQ.I1S. have, ens'I,J:red 'lil1a! IhelselV~oosf'lBmewQl1kado,Pted ,could aClClres$ area's such as s'~rateglt Ipla!lilnl:li1Igl,fa,oiUty' planning and the use of liT assn enabling techmlil:ogy.
The strategic plsnnilllJ has been dcms'at: the

aCIV!aliTl~ge in oomparativepricmngl,of medical expenses. The IliiliFecUca'lchal'gss in India are belW,een one"lenith andl one~lhlrtle1h ,of those in Ihe, US. Fior 'example." ,EI bYipasss;ll.Il1ge'I'Y wllla'n oosts :$1 :9,1000, in the Uliliited ,States"
costs ,onty$80()

in [I dla " witl1 the sane n tBchnologlesand facilmes. The Br:iitish heaith mllnlisl.elihas eventa[lked about nylng~,I;n

Br1itisl'rl [patients to 11[!leri'a for' ttr,ealmeIil1. aad thereby t;o reduce th,s heallhc81re burdenl on
Ihestate .. Tho, Illndlan medical talellt tTJas ,alrea~ ,gained reol)g[nltlon aroundl the gl,obei•
i •

system i.e• in stilutio,naJandi cllinlical Iprogramma revel's, as w·ell as lin th.9~Wlnaiol1aJ work [piLI1ICtJ'ls!r111 :

areas such as ambUlatolY ana,. p:lilyslaan pmet,lee


dSlvelo,pme',nt, natwmtililgl. Im8r,gerIBcqu!l8'i~jon, ,Sind o:rganlsQtio:n an;g ,governance, The destgn of .hel lacill~ ·S,SW/CBS ,addiflllHiises ~SS\.lie5 su:c'hl as ,comll~elheins~ve spaes, [pISiII1.liI:ill1g • ' focBltienevalluatiD:n, IQpera~or1la]: 'I'BiStruc1.LlIIiI1l.g!1 ,and acllv,ati.Qf~1for a 11ill range o~ iilO:paUelilt. ambulatory.

" Iinala"·s;[IT oapalJiliUeS-lndla healtlilcare

alSahas

8,

strong

capad~ Ul'ls:ppln.g the p!ote:nllal lin [IT-e:nabl'ed

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tnvest~liIg not onty inlndial, bl.lltalsol il1llSl'li 'l..an'k:a, Nepa~ 8ndi'Q,ti1IeJ 'countries·, A leading hospitaJgroup. lor 8x'ample •. has pl'B!lilned allu)~l1er 1000 new

education, (,Qsearicli!lllnd .support: space: ..


Theool '1IiIrmeareas. ,a:ndthelr' se01!nrs ,o~O,ps'l'atilln ar!e emabora:tedi bill Fiigs, '11 :A.. U :,Band 11:0 l!lespeetively.

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.' To d:eterm~nel Ihel lileaJllilcare del~verymodel:s 'which are mike~,'la, (MI'lve lin 'Ole ,ooulIlby' Ooni· sideriing the change, .at1iv,ers .. To i~dentlfy the e.m(U1gI n:g; Imodels, and oJPp .. lo.rtuliliUes~e.'g. speciia;tltltUO ,of tI.ealthoarel p~ of emEug'ng Im.OO:,eIs Of heaW1care ~seMOOS'among 'OOli\$ljmem '. To ,esla!bUsh the ,81l:laS of imllprO"lemsmt ,and the ke, s!,I:cDessfa:clolrS lor the healt:hcare
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the fillies 'DI 'liarii:OIUS p~ayersI:nthe Indllstry. Driven

saNtee Iproviders In the ,changing scena~rio,lor ]

various fullotjQfla~ areas

0119 ISliKlh framework b,,' tllel IKSAHe'aitliloareIs listed below. The' KSA, ~hl'Ol!!IghUllisexeroise, ,has stl1ived '[0, urmer&1and ~he Id!lreet!on '!Lila Industry Is likely to, lmeve ~nl,ol,owing an i~n-deplh und'erstallita~ ' IllgO't the ohange dr,lvers. Its fr,ame,workfor a I!tea:lthcare, :&eN,1ce provideII' llil Inl:!llaaJ,ms at schlev'U'~el followingl objectives~

( The 'ISA H,eah:bcare Prllm,ework

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The KSAf'r,amewtuk adldlliesseS8l\SliS, such as stl'a:I:.. ,egy" malrte,ling; ,organnsational smuelUltJ' and ~pelra,~ lions. It addresses rSSiIJ8S posedl D,yths sliIViiro:nmslilt ,and aUll1sls.taJkehofdsm Involved im the hsalithcare' de'I'lIve:1i)' Imlodel"n1e k.e<'y areas ,add'r,essed hl (he, KS·~ 'framework 'Bros"o-n· 'I'n IF·.o':I;s'~·r\ nU Ii 'EI 111!l!1.\J',a.....t . -8r
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'.'ActiOIil planlar

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.. lRisk IMinimisatiOn 5yslams

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( 1~IBL.:DWOR:K

'O:bJacliveliirle obJ:eotiv€I ~he proj,eot. 'was: tOI (;ormpare a~d eva!ll!Iat:e~he SBR:ices <i!flsredi b,ytlil:e hGs,l~als lin 'OaHou~:'l!Ising the, SEFliVClUAL :scal'a. CaBout 'hasa. mafge,numnber' of !tlIo&pilaJls whioCl'II can becategl!flised: Illrmmly Illiltolllroo groups. 'I! G,ov'BmM8nt tn;os;pitals Ilik,e'll.e IMedical Cclilegs, HoS;pltIl. ,and ElJea.€ih IHospital,. 'I' IPn,Vi8i~:e!!y run Ipro~it4)~ie:l'llttid hospitals I~ike the IBaby' Memoriial IHos:pi~ajl. Ua:lamar 1:liiIs~itl!.lte 'o~ M'editalSCienct!l slI'!d P\lS H~osp:itaJl '" IPll'ilv,alel~ 1fUn: m~issioruel'llaJli~ 't1IoSjpi~ams,Iii~e tlii'le, : Nirmala 'Hospital A~O:liIrth !@lass 0:1 $rna~;".nvatQ! ,CliniCS with hl~ IP8lUerntf'aci'li~tesi :also 'B)(;lst bl,!l~trneslI"clil'1lics,g:el'llsli'aJly Illave ress tl1lan~el'il staff [members WiUii orten G'11'ly a :singlQ 'd:oo:tor at 'OQIII.An attel11lp~ a~, slIIa!¥·singl ttlle, serv:icEI' qiUlaIi~ offef:edi by 'gover:rnment hosplrtal:S has no~ been !callfl edl QI.III: :a:s~~.e,olliem,telQ earteredro by these IIiI:osfi~'8J~sisv,eliY ,cliff,efel11tfirorm tlilose, cateliiBd to, Iby~e' IpriiV]I,te liIospitalis. 'Til,9 $tl!.ldy.~fnelrefoFe, r!es.tr.a[l'1I~ its, focllIs ome:Ra prIWatelliy'- tI:eI'dprofi~~ (uiented tlospUal1 (Bab,y Me:moFial H!os;pita:l) QIlCi a second [pII'i,'Viait;e! is$lolil hospilltall (til h:mala: H!OSPital~ m r'lJDn prima:liilywi~h1a, chaliHy ,obJecmIDve. ..

m:

SeNiee, 'OftriiJlgeTlFle, hospital has~4 :spe~iaJiist depaJ1ments each under a consulting[ specia'list These ,d'epartnnents iilrncl:ude: (8.)''Ge:n'n,er,almedicins' l(b),Gerne:raJ Surgery!. ~e) Obs1etrics and Gyneco:I:Q9 Y. (d,) 0!l1h'Clpedic5" 't)1 IPed[iatriC$, (1) UroIOSl,yatn'U:d .Arnd,,:oI:ogY·j ENni, (11) '~ead 8Lno neck. S1U(,ge:ry" (I) OphUfJalII'llOilog!y. ~l) IDerm:atdlogy SJrnd Vlr,Dlo.fii' ,(k) £)ernta:1 sUl~e,ry., (It;) NeuJolOQlll\ (m)' Caidi~log", arnd 1(11) Gas'tmel'ilt:er~h:)9'Y. j i

If."

Jherotal' llil-patient bed strernglffil (~~the' hos[l>r~aJl is 300,. IO~t1Ier fae'ilitiiBS ,oHefiSdl ,by ~~e t'iespU:alto patIents rl1lc\lI!u1e~a) Cam~Den fa.oil il[{!s: wi~iI1lmom &aNios" ~b)IPlTla~m'acy! ar!,d 1(0) IPriv!sJte Ipalikiing Wiltll seooliity g,uards. . ILa!JGlJlltTh,e layol!J~ Im~he hoS;pitaJll is ,PfD,y,idediin IFlig. n :IF. S~;tuatedl irna. large pmo~: of hil!ll~.~lh,e eOlJlli;IlsK a~lsoihOUlsesa. nUrSingl coll:e-ge. a cli!ur;c'hr,I. host&1 fDII' thle ntlJ.rsing[ studentS ,Birnd nurses, BJI10 alii 1IJ1fS!~J'line ,conVisnt !Due to avsl~labi~ity ,of ~Ianol,. thel Ih,os,pital i.s s,paeio!J.Is with no c~owaimgl ,aJ~:any pa:l1ioll.llar I'ooa~i:olil. Ute itayo:ut is 'very OOl'ilvirnBn~ nulthe patients as lfI~st deparrtfflsfi'it's ,arB' Ih'Joa~el:ilo:n tills 'groUlndl 1loor. In addfiti on thl:e GUit.-p'a!tiern~(ionstJna!~io:l11 roams ape scatlieredl aJroU:l1Id~li1eIl'Jii!!ain ~IQc~k :S!lJcl'iI 'tli1at thElrs, ~s' [IlO I'ack 101' wailing, area. in 'mfOlnt ,o~:any _paAnl.e:l1t. Tha Iparfdlilg 1'01,. IiIO~sh;Q:Wll !irillhe figure, aJbotrrve". ins, [rII;e::dto the derrutal G:~pammeli1il. ~~1m LWS' be, Irnotedtlun ani Ih:os,pital bun'din:gs a:fis looat'sdl a,t :swfficiernt distalileesfrolfl~h,e liiI1a:inlroad such that no tr,ailh::; noiseflill'efS ~JIIto d:i\s~lImtli1el pa.t]en~s .. IP&O\pleand P~lit:;ing n~.e ho~pim~has 31 doctors, wli1icihincl'ude' bOI~' tempQlfailJand :lJe.lil1iilali1el'1l~ doo,tors. 8~,tIB() ml9d~:eallandllpammneltie.al-$tal Wfrl'HCIfl [ir:lo1U1despliiali1llacy ,aldl labommo:ry :sts,ff as we!U ,as numBS.. IFenila~e s~a,H;'OU~IiIIL!lmiHrs liiJ'Ialels·talat a l IratiO !Of [rn;eal11ye,gtl\~to' Gne. SeM~e n1 i rnded:n,ess [Is ani Ilmportarn par4111!1aMr wtlile se~~eetin,g :stalfor the Ili!os:pital[,. IN[ur:ses8Iffi, 6E1fectedflrom -U18 li1Ios,pital~QW,I]mdl Ufs!ingl SCm,OOII n whiC:hoH'ers d ip~Dl'iI1a ,ooumes, lin nlJ,U':sirllig·. Tho, cow ree, lincluDes a.l11lr,ee, year 'fo~l11Iaru study prog~lITI:m,e f'oI:lQw,ed by a thffie y,aaw I'nrtams!hlp! at ~heno~pital. . . l1

Nlili'fiI1a:~a IHClSjpi~a!w,as f'Gund'e~ iln leas by a IMissionaliY P:rl~B$1Fr IFX IRooca. 1Ilihe ihlos,pitaJl !smn:edOiLd as as.miaU dis,ensalf)' 'OUlirN IPrimary lIiIeal~ih oentell' Wiith ,a. f.ew mrn-paJtien~ :beds,. ~tw,as Il'IIa!luilBd'O,V9[rto, IJrrsu~!ilile lil'UIiIS, in11964 wIrlo have, si,nte' mall1l'agedlha hospi~a[ll. IH~atory lays 0'1JIi1Us m iss[ol1l as ?leafing with' ah',uman' ,fc.u:lchr"Th,EIlrel!e:varncel'o~this Irmiss:ion SYitement was, ,dear' ,alell'~lh,eSe'r'lll:ce, qua;Uty s~judy was, perforl1UlIa. (This: would !be (tis'CuSBedll~aJ~ertmtt1~'s,'GiooUlme:n.t,,) rho, h0~p:i,taJ a.mSD I liars old 'f,o!!.!~ ,ob_frec>1iifvEl:s.for its QPera~ions .. ,. IRestOrle: 1i1;salltfnlsnd [main/lamn whQleness, ,of IhlJrnJanmel
Mlsllo:1iII1 'line nos;pital .. IPro:v;idel q;llaJi,ly ,llIetrlcll cam ,., nail'll psfsoli1nel:f,ol1' 'eonuillun.ityl1leaJ~lh" soc.~al

e:nd fQ,JlIiIi~ weU,afe

'. fwltlote lliiaalh ,Bliild pHI:'¥',ent ,dIsease anilon.lS~ ~meIIQQaI'~I1i1I!iW!~nnjM;.

ilile' ,of,:ganisatlon struotur sistunotilonalll and has fhre depamn.Dliilits" 'These QI19 'lila II1iiIEI(j:icals1aft hutted by a !medical sl!.l"~lnterndelllti.a InLil~si!'llg... pai1l11&rn headed !by a nlllf:s~fiIg[super:intEU'ld:eilti a nu,r:sing ecnoollhead~e<t by. the dlrrecto~ IO~the,SCil'lloo!l;, fliFll&:nce and aCCQU I'IIts d'e,paJltme:nt Ih.eadec:l by '~he
1

Copyrighted material

tr,easurer of the [hos,p~tal amdl a. [J)Gmon'nel ,de;partmali'll. 1l1ase de,partmar!1lts i,rndepeli'ldBl1l1y ,l'S;llo:rt to the hospUal adnlinistrator Willo is ,appointed by me

management commllee.

'The, hospitan i:s. fieaso:nafjl,y' [priced with a oonsuUaltlonl CIi1B.rge of Fls 30. Bas~c tests a't the

laoo:r:atol)' l'iil<,SI !blood g;rou;p Idenli'~cation east ,a.s !'iittl'sas 20. The ,consl!Jllalioll1 oharges have been d.eoided in, line, 'wilft lila miSS~OnBIIiY backgroum:l of 'Ilel hospital.. lln,pallenl beds are avaJ'lablsf,or' as: II,ttle, ,a.s Rs 1[50' per Il1iglU.

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Accounts,

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N/tmaJaHosp;ta~yoot·

J
Bab,y Memorial Hos:pllals:tarntea eut inl 198,1 ,as a :small 56 'bed ho,s,plta:ll. The hD~pttal moved tID!lits ClJrrent Ipremisesa few years I'aler. lit is ,plllivalely he'lc:l by D,r IK G Alexan.cler.~lhe ,chief ,cGnsultingpl1,y.siolan. t.t~.. lon The [110.spiltalllaysollli Its mission as 'ptolesskmsJ 9XlcslIBncs ,andperiec1pa'ient carEl. Rvimfominglhis misS/lon, the hospitall has sl!!l~h' to gatllerr Intematlolil'al ,and national ,accredItatIOns and awards ,given 'for the highest quality of service like ISO' 20011:114000.lili'te chainn8f11's.statement 01'111 Ole Hll1ary'

·lIIile· :services, ,offermil[ lbythe [nos,,· pHaI Include: InlemaIIM.ed[cl.ne •. Cb~)'CardiOI'Qgy" (d" [~J ILl ' ..... (--)1 t.i_",,~~_ c _'II,."9_I,,,ogyl (8) . ~astmentemr,t1Itm ,',__'U- . (I) Ra,dldiag". (a) [Del'maldIOgiV. 'Ih) IPediatriCs, (IJ Ch.&st and Ailierm",. ,0) Ps,ychologlcal ,M:edk:lllne" {I,t Laprosoo,pie S'!l.lIyery" 1(1) Transplant :SUrgiliY,. 'Iml)1 Neu,(iDSuriery'" (m) 'Pila&tJcSUlgelY. (0) OrthopediCs. Ip)1 CamJQlu)raS~Smgeiry, l(qJI P8dlalD;: Surgery" (1i')1 ENl 8fJd ,audiolOgy. ,(.) 'OphUlalmI)1ogy" (;1) Gyn;ecol:ogy, and em) ArMmihesiology:. Eachl !of '~hesel flinctlons a,sepal'S. depaiJitment 'with a OQIl$ulUng p1:\ysidan inl ,charge.

el,

C - ._

f¥'~I,[r

as

'lihe; lhospiital has besil U1Je rimt to add ,Q number ,or seNlee! 1U1~.e ,8smls o:f·~he- ari: cancer treatment e&tM:er ,aM an unua-model'in carolo-'thoraole cent.eli .. Th,Q hospital [prIdes Iitse" III ceUveti'ng the best qual it)' treatment ·ait aftolld'abl:e pmlesS"

hospi:ta:11 website, also, stresses Ula nsed[tar growm •.

The tol:aJill4paUent bed'sll'Elngth ,oftlile hospltal ~s,around 5OO~111:1; COI11;pl:e~ely compulelilsed wHh a data processingl ,and hos,pltaI' Il1ItormatkmS¥S1em In [pmaC6. 'The' hospitala.lso, boasts, 01 a stB~,9-Qfr:·lle·art ecG-fnel'il,(nywas~:e disposal s,ysl.emlas, well as ,81111 intemalwater halman! Ipl8!l1:ts andi ilnclnelator.
Besides, it oHsr,sa number '01 lacmUes lilm (,s), ,canteen wl1h roomselVioo, CD) pnarmacy wirth cmdlit

Copyrighted material

88 Services Marketing
facility for In-patients, (c) parking lot with security guards, (d) air.conditioning and televisions In high priced rooms, (e) taxi booking and advanced reservation for rooms. Layout The layout of the ground floor of Baby Memorial hospital is given in Fig. 11:G. The hospital Is located within the Cali cut city boundary limits and the whole complex Is constructed In (a) limited space. It is flanked on three sides by the NH 212Mavoor Road link avoor Road hnk road

Pharmacy

Store

g a.
Q)

Parking

OP 0 p rtmen

8
Wa I 9 Area

<

RegistraHon and H lpde k Waiting Area EI vators OP 0 partment

Emergency

OP Department

Fig. 11:6

Layout of Baby Memorial Hospital


The hospital also has an additionaJ parking lot behind the main building which can be accessed through the main gate as well as a separate link road gate. .

structed n (a) I mlted space. i Is flanked on three sides by the H 212- a oor Road link road and Mavoor Road. The noise of traffic on the ro d IS qune clearly audible even inSide the hosp tal. Baby Hospital. I ke rmal Hosp tal. has all the outpa lent climes loca ed on the ground floor of the elev n story buudin hat it is housed In. The adm ssion counter an pharmacy as ell as the emergency unl are also located on the same ftoor. As a re ull I e front lobby of the hospital tends to ge extremely crowded during peak hours. Additionally. the hospl al h s only 0 main el vators servlc ng the e even floors. This ends to result In long elevator altin limes often as much as ten minutes during peak hours. The lac of a proper queu ng system which IS typic I of India adds to th trouble. The hospital has utilised its limited p rk ng space n front of the nospnal in an effic ent manner with parking staff on call to assist parkin •

nearly 200 administrative staff. Many of the doctors are ret red government service professionals and highly reputed n Calicut. Each department has one or more consultants each day with senior doctors on call on specific days of the week. The nurs ng staff is primarily chosen from the nursing school attached to the hospitaJ. The hospitaJ is professionally managed with separate departments such as medicine. nursing. administration, finance, purchasing, customer relations and marketing to cater to specific functions. The hospital Is moderately priced with consultations being priced between Rs 60 and Rs 200 de-

People and Pricing The hospital has nearly 100 doctors, 550 nursing and paramedical staff and

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Product-The Ftrst P pending on the consultant. Departments also follow dual pricing depending on the consultant on call. The in-patient rooms are priced between Rs 350 and As 850. Responslven • • • • Staff Interest In work Promptness to cans Updates to patients/companion Willingness to help

89

( MEASURINGSERVICEQUAUIY

A SERVQUAL scale was used to measure service quality offered by the two hospitals. A seven point Ukert scale was used for measurement. This document has been provided in Appendix 7.1. The five broad parameters under which service quaJlty Is measured and the questions used to probe these areas are listed below. Tangibles • • • • • • • • Quality of medical equipment Cleanliness of premises ClarltylReadability of signboards Other faellit es-quality of canteen, parking Size/Quality of rooms Number of specialities offered Smartly dressed staff Quality of Interiors

Assurance • • • • Hospital reputation Professionalism of staff Competence/qualifications Reassuring behaviour

of doctors

Empathy • • • • Waiting time for patients Facilities for the disabled Rates and timings Individual care

pharmacy,

Fifteen respondents from IIMK who had used the In-patient services of either hospital were chosen as respondents. Only five respondents were familiar with both hospitals.

( FINDINGS

Reliability • Timely attention • Diagnosis accuracy • Quality of record keeping

The results obtained on each parameter was tabulated and the combined score was reduced to a scale of 0-10 to present the final results (Fig. 11:H).

o~--------------------------------------------~ 9~~~----------------------------------------~
8 7
6 5 3 2
1

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II

111.el general

~indililgs~!romithe' study' eeuld be

summarised as: 'fl.) Baby iM'emorial hospital gema. sllIbsI8m1ltia!llly h1Q'her r,atlng In ~e.rms, or langi~les This Is.due .. to, the emam.ely mod~em services, p'rovided
an(jj ~he, re(atively n.ew Inlrastnicture"The h09,plll&J atsoses!ks t:o be th.e most modeml ons, In Kemla. amid 'UiI!is Is rSiNeded inltll1a tangible' aspeds of seli'Vllcs. 'The hospital gets particurl'BlI, hl:gh ratings. for questions like

The Qvmiulitions 'Q~ service quality for both hospitals l'evea~tl1le dHiferenc8stlilat: ,ousto:m:ers, pe!~oeiiyein
tSI'lJilS ofservlcei lq,uatity. Baby Memoria1 ~ospilal'S I'ow scores en liiS,ponsiVe:n.ess and empa.thy tr&lfSa1 tnaltil is f,alling behind iits 1110"0'of p;rmridflllgi 'perfed paUtmt care' ,iI1hsl'Isf,onil,., [p~ocessreYiaws and slatn lrail!!lin,gtCll imp:rrove thesssco'l'EIiS! ,are .required. Nlr,maJa hospital,could imp:mv,s Its, scores by glvl'n; tis !p:remisesancllaci:l'ities B.tace-lift as we'll as. some amount of' ~m:o~9r11llsaltioll.TIllis, 'would 'tlinall likelihoodl invO:I:ve, a fair iBmOunt of ca;plta:1 e'~pendlliure', How,e'll·er. whether iNliirma[a.ho~pita1 wOldd beab!latD oontil1lue wi'h its low cos:t :seNice model illf s'Uch expen.dlhJlI'&s 8l1'e'mads' ,~samajaf questiol'lll ~o be co:nsidsredal.thisi IPoint.

Inttu101S, specla1li~r,as, arm equlp.lm,elllt.


011

CI!:I)I Nirmala. l10spRal recs~ves ,8 oomparativ,sly

empathy whIch rna.y be 111111111'119 'willltile liJ.ospitals lmission ",hea' wrlh ii' fl,uman touch'. Nlrm!ala IhOSpna:1 :Is rated hlg'hly 0111 ,questions Uk.el in(nvldua~eafe'! w,amng time andl trates.

h1g;her:sooriEl'

'Cel,

The, (lesllitts.aJso fi9vea~lhalINllrrmala hOS,pital lSi r:alaal albove Daby lMam.oriall tiI,Qspi:taJIl mttll,9

REl£RENCES
1. Ce'rtiterfo:r Ernqu.iiry IIiI~o Heal!tltland
2. 3. Themes, ·www.lcshatorg Rawi Du:ggal'i ~pera1iol'ilallsin'l1 RighI to Heal1hca:JiB' in I:ndle'" WWW.kJsa~19C:hl1opak.com YAYW,i(,tlr1sa[mon.com WWW.llilo:lalnfolllnlhoom WWW'.dion'lins.org www,'ll1o'lastat.com

r,sspon,si!lel!!less paliameter .. Nlnnala, hospital is valed highly on qllBs,oons like lIpdates


p.rovil!e~1·to,patientstcompaniiolljwilllng~ess

AiUied

to l1I.erp, and Proa..c~iWlISt9,H.


,(d" ,On the Klllability and assurance lpa!mmet:ers 'U181 h,Qspi:lBIs are 'lied wilh UIUa dliffereoos Iml the :soores obtained.

4.
5. 6.

'1.

P~~evallau~

Bah,y Mem,or.ial. HospitallNirmaia

Hospital on. a: soot! of [-7 on (he ,fonlowifig :paramete~s. Poo~ paikinS Mod,c;m eql.l~pmeh'r Dirty .p'remises
Clear sip1boaros

(~ood. pnkhag

e~canpremises 'ConJUsln.g,.s:ignbouw Pleasant .interiors Smanly dr,~scd em,p.Joyees lEase'of Acoess; (iocadon)

Iil[!] [iI~ ~ I!] ~l [] liH!] ~!J liHiJi [JI [i] liU!UiHiHiJi


[]I[!J Ii1I[;] .[!i ~ IiJI~

lUI [i] (!]I ~ '~ ~ ~]

~I[~U~ [!] ~

Shabby employees .CUilcutt


:11r;«S.S

Ii]~ [!]I [!]I I!]~ [!]

Copyrighted material

Large no: of Specialities, Hi:gh Avaibbilityof drugs (,hlr;macy)


Good,
C3:lf:I.le:en

I[i]: 11i1111i1[i): l!l11i1


:111:

!~i

Iii] il!1[!II!] Iii] II!JI

.f.lrciliucs

ililllli]l [~] ~i I!]I[!JI.~

Cramped rooms,

'1iUi]1 [i] [;]1~ li1i [] !ill~I~ ~I l!11!]II!] [

SpaQI01l:S rooms
Tool mu~,hddO!!y
W,I:I~,)in:g di,ap1o:sis

yrrect

di:agrnloiSis

!ill liJi ~ ~I~ [!j lr]


[ill[iUill ~ lliJ~ [] Gill ~ ~ I~H~]I!l Ii] hHiH!U~]~H!]~ I lUaU!]i~ I~ f!l[] 6J~ lint] 15:1!H~] I [!HiH!U;!J i~I!J[!]
i!1~ ~Hi]I~liHil 1il81~ i~~ ~ [!l
Ii] [g] iii[!] ,~1i10

(Fir,s( dme)

(Firs[ It~me) EKor free records

Proactive

:sra_ff

P'.I'(J"m,pmc::.ss (lollcspondi,pst0'

Lack of :lulti!,m,p'ule:ss
Un responding to calls)
P'OOf

,ca_U~'

P'fD:prer updatGS Ie parien(!l:

updates

UnwiUin:gness: to help

Vdling)n~ to help

(In administering modid'lDJa) Gooo, reputllUon


P'ro,fessiomruism

r{m:n adminisK',I',i.ng medicines) Poor r:epur!!!fio'n

of'scaff

[!HiH~H~~ I!1~
Good ,indivldud. care

No't reassurins
Bchaivj,QlJf

lil [i]~ ~ 1!1li1 [!] 1!I~1i]~1!I1!J[!]


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