TERM PAPER

OF

SERVICE MARKETING

TO MAKE SERVICE ENCYCLOPEDIA OF

SARB MULTIPLEX

SUBMITTED TO: SUBMITTED BY:Mrs. GAGANJIT SRAW CHETAN SHARMAHOD & LEC. SERVICES MARKETING REGD NO. 10802057 ROLL NO. R1803A10 (G1)

EXECUTIVE SUMMARY

The report contains all the aspects of service encyclopaedia for Sarb Multiplex, Jalandhar which is a movie theatre with additional facilities like shopping mall, fast food courts, Kids zone. It is first of its kind in Jalandhar region. In this report an attempt has been made by me to cover all aspects of service encyclopaedia expressly service marketing environment, service segmentation, customer requirements and customer expectations, quality concerns for service, Integrated gaps model of service which covers where gap exist between what customer expect and what customer actually receive and also cover employees expectations and what they actually receive, service recovery strategies need to be used by Sarb multiplex, design blueprint of their services, positioning map where they are placed along with competitors, design servicescape which is atmosphere which multiplex offers along with employees, role played by employees and their customer in delivering and consuming services, what channels of integrated service marketing communication they use and new channels they should use, how they price their services, different intermediary delivery channels used by them for their services, management of waiting lines.

SERVICE CHARACTERISTICS

A service is the action of doing something for someone or something. It is largely

intangible (i.e. not material). A product is tangible (i.e. material) since you can touch

it and own it. A service tends to be an experience that is consumed at the point

where it is purchased, and cannot be owned since is quickly perishes. A person

could go to a café one day and have excellent service, and then return the next day

and have a poor experience.

Inseparable - From the point where it is consumed and from the provider of the

service Sarb Multiplex provides entertainment services from its on-site theatre.

Perishable - in that once service has occurred it cannot be repeated in exactly the

same way. Sarb Multiplex does maintain its services in such a way that no theatre in

the region/locality can copy them up.

Variability- since the human involvement of service provision means that no two

services will be completely identical. Sarb Multiplex provides such services which

are not identical to other theatres in locality/region. It does provide services which

are unique.

Right of ownership - is not taken to the service, since you merely experience it. For

example, an engineer may service your air-conditioning, but you do not own the

service, the engineer or his equipment. You cannot sell it on once it has been

consumed, and do not take ownership of it.

SERVICE MARKETING ENVIRONMENT

Political:

· Government type and stability: government of Punjab is stable once it is elected and governs for full five years so government instability doesn’t have any effect on policies of Sarb Multiplex.

· Freedom of press, rule of law and levels of bureaucracy and corruption: press is free to right about what it finds best and criticize what it doesn’t find good so Sarb Multiplex have to be at toes in providing same standard of service what everyone expect moreover they are free to advertise anything.

· Regulation and de-regulation trends: government policies of standardizing level of entertainment and deregulating trend of showing movie after 12 in the night affected Sarb Multiplex.

· Social and employment legislation: employment regulations are always in favour of employees with each and every employee is a member of one employee union or the other so Multiplex will always have to keep its employees interest at the top.

· Tax policy, and trade and tariff controls: at this time Sarb multiplex is giving 30% of their profits in the form of taxes moreover tariff on showing new movies is also high so as to protect piracy is also high.

· Environmental and consumer-protection legislation: regulations passed for securing noise pollution, air pollution, land pollution are all affecting Sarb multiplex.

· Likely changes in the political environment: change in political party and new policies of new government will affect working of multiplex.

Economic:

· Stage of business cycle: Sarb Multiplex is in growth stage of business cycle as people of Punjab are getting used to enjoying social high end service when it comes to entertainment so multiplex has large market share to gather and huge profits to be made.

· Current and project economic growth, inflation and interest rates: high rate of inflation and interest rates will effect liquidity position of people and in turn effect business of multiplex as it comes secondary to fulfill necessities. Moreover interest rate hike will affect multiplex to expand further.

· Unemployment and labour supply: Low level of unemployment as compared to other states and high rate of efficient labour supply compact for the work in Multiplex will always be in favour of Multiplex.

· Labour costs: the quality of work will always demand high compensation to employees moreover low level of unemployment and work efficiency would require high payment so labour cost will always be high.

· Levels of disposable income and income distribution: level of income and income distribution is high in Punjab as compared to other states so this will also act in favour of Multiplex.

· Impact of globalization: this will work in favour of Multiplex as consumer will averse with the standard of entertainment service provided at global level.

· Likely impact of technological or other change on the economy: changing technology is affecting each and every business from small to large so this would affect Multiplex also.

· Likely changes in the economic environment: with the development of India as superpower in the world Multiplex have huge opportunity in front of it.

Socio-Cultural:

· Population growth rate and age profile: growth rate of population in Punjab is high average age people here is 15-40 which target group of Sarb Multiplex is so this will also work in favour.

· Population health, education and social mobility, and attitudes to these: education level, nutrition level, social level of people of Punjab (especially Jalandhar region) is high which indicates its prosperity which is targeted by Sarb multiplex.

· Population employment patterns, job market freedom and attitudes to work: employment pattern of people here is generally self in the form of farmers as region is famous as agricultural belt of Punjab; job market is also open as multi-national as well as famous domestic brands are exposing themselves here from metro cities to utilize raw talent here with positive attitude.

· Press attitudes, public opinion, social attitudes and social taboos: this also work in favour of Sarb Multiplex as high level of Press involvement in every work.

· Lifestyle choices and attitudes to these: lifestyle of people has always been high compared to other states by looking at standard of living of people, 90% of people have their own sheds/houses rather than on roads.

· Socio-Cultural changes: people of Punjab are very social and respect their culture and are strict for their religion so Sarb multiplex has to operate accordingly.

Technological Environment:

· Impact of emerging technologies: with emerging technologies the cost to acquire these is becoming less and less so people have started owing these technologies which is acting against interest of Sarb Multiplex. · Impact of Internet, reduction in communications costs and increased remote working: with the exposure of internet in every nook and corner of country and easy access to every information and entertainment source is playing a huge negative effect.

· Research and Development activity: if some parts of profits is contributed towards conducting surveys among the region and gather information about interest of people then it can act in favour of multiplex.

· Impact of technology transfer: with increasing cost of research and development at global level and easy transference of technology it can act in favour.

SERVICE SEGMENTATION

A popular way to segment customers is by revenue, or profit generated with "A-list"

customers receiving more perks and personal service than "lower" categories. There

are right and wrong ways to do this. Doing it right means cultivating customers so

they all feel appreciated, by developing or improving services to meet each customer

segments' needs. Result: pleased customers and higher profit. Doing it wrong creates

risk of sub-standard service for "unimportant" customers, making them feel

unappreciated and resentful. Result: missed profit opportunities and disgruntled

customers. Sarb Multiplex generally segment people with age as it targets people of

more than 13 yrs of age where students have finished their schooling as mentioned in

privacy policy of multiplex.

.

SERVICE MARKETING MIX

The services marketing mix is an extension of the 4-Ps framework. The essential

elements of product, promotion, price and place remain but three additional variables

– people, physical evidence and process – are included to 7–Ps mix. The need for the

extension is due to the high degree of direct contact between the CE providers and the

customers, the highly visible nature of the service process, and the simultaneity of the

production and consumption. While it is possible to discuss people, physical evidence

and process within the original-Ps framework (for example people can be considered

part of the product offering) the extension allows a more thorough analysis of the

marketing ingredients necessary for successful services marketing.

Product :- A product with many different features provides customers with complete

entertainment of movie watching, opportunities to chat, play games, shop in mall

having world class brands, kids-zone.

Price:- Sarb Multiplex wants to make its services accessible to as many people as

possible: from the young, through apprentices and high powered business executives,

to the more mature users. It offers various pricing structures to suit different customer

groups.

Monthly price plans are available as well as prepay options. Phone users can top

up their phone on line.

Promotion:- Sarb Multiplex works with icons such as Harbhajan Singh to

communicate its brand values.

Above the line

Advertising on TV, on billboards, in magazines and in other media outlets reaches

large audiences and spreads the brand image and the message very effectively.

This is known as above the line promotion.

Below the line

Stores have special offers, promotions and point of sale posters to attract those

inside the stores to buy.

Sarb Multiplex's stores, its products and its staff all project the brand image. Sarb

Multiplex Essar’s advertising campaign

Promotional mix

Advertisements – TVC, Print, Radio, hoardings

Value added services ads – Visual ads supported by Print ads

Events/programs – show watching as price for giving correct answer to a

question asked by TV/radio shows.

Sales Promotions – Special prepaid bundle for Diwali, and other festivals.

Value Added Services of Sarb Multiplex needed more promotion

IPL had lot of scope to be taken advantage

People – because of the simultaneity of production and consumption in services the

CE staff occupy the key position in influencing customer’s perceptions of product

quality. In fact the service quality is inseparable from the quality of service

provider. An important marketing task is to set standards to improve quality of

services provided by employees and monitor their performance. Without training

and control employees tend to be variable in their performance leading to variable

service quality. Training is crucial so that employees understand the appropriate

forms of behaviour and trainees adopt the best practises of the andragogy. Sarb

Multiplex actively develops good public relations by sending press releases to

national newspapers and magazines to explain new products and ideas.

Physical evidence – this is the environment in which the service is delivered and

any tangible goods that facilitate the performance and communication of the

service. Customers look for clues to the likely quality of a service also by

inspecting the tangible evidence.

Internet/web pages.

Paperwork (such as invoices, tickets and dispatch notes).

Brochures.

Furnishings.

Signage (such as those on vehicles).

Uniforms.

Business cards.

The building itself

Process –

This means procedures, mechanism and flow of activities by which a service is

acquired. Process decisions radically affect how a service is delivered to customers.

Sarb Multiplex recruits high quality staff treat them well and communicate clearly

to them: their attitudes and behaviour are the key to service quality and

differentiations

They attempt to market to existing customers to increase their use of the service,

or to take up new service products

There is set up of a quick response facility to customer problems and complaints

They employ new technology to provide better services

They use branding to clearly differentiate service offering from the competition in

the minds of target customers

CUSTOMER REQUIREMENTS & CUSTOMEREXPECTATIONS

When it comes to quality of service, customers have higher expectations than ever.

They want nothing less than a superb customer experience from their providers. With

narrowing choice from competing theatres in Jalandhar and no compelling reason to

remain loyal, consumers can, and will, vote with their feet. Whether a company is

new to the market, or well established, it’s clear that providing superb customer

experiences has to become part of an organization’s DNA in order for it to bolster

customer advocacy and reduce unwanted churn.

Traditionally, there has been a high cost associated with providing a superb customer

experience. The tightrope is the balancing act providers perform when trying to

balance delivering great customer experiences with controlling and even reducing

costs.

However, Sarb Multiplex has mastered the tightrope and are delivering exceptional

customer service with very lean operations.

The ability to differentiate brand through the delivery of exceptional customer

experiences, while tightly managing costs, is something that Sarb Multiplex adopted

from the beginning—recognizing it to be the new battleground of customer loyalty

and a critical driver in recruiting new customers. Sarb Multiplex is known for its

heavy brand investment and a complex product portfolio, and the service are

differentiated by offering tailored products at competitive price levels.

From the outset, Sarb Multiplex’s criteria for successful market entry determined that

delivering satisfactory customer experiences was essential.

STRATEGIES USED BY SARB MULTIPLEX TO MEET CUSTOMER

EXPECTATIONS

Differentiated product

Simple price structure focused on essentials

High price point(compared with competitors)

Long term commitment

Alternative channels

Low acquisition costs

Focus on online sales

Leverage community effect

Lean operations

High online self-service

Simple product features

Strong brand

Build up brand and/or leverage channel asset

“Trust” in company key for final purchasing decision

An online only sales channel, and the need to keep acquisition costs to a

minimum, was dependent on building a community of satisfied customers happy

to recommend Sarb Multiplex to others.

QUALITY CONCERNS

Sarb Multiplex’s concern and priority is to satisfy customers, by understanding and

foreseeing their needs, as well as covering their demands and expectations and by

providing products and services of exceptional quality.

Sarb Multiplex defines quality as the possibility to exceed the demands and

expectations of its customers and people through the continuous improvement of the

operation of the processes and systems.

Sarb Multiplex’s quality concern is committed to…

1. Ensuring compliance with all the requirements of the Quality Management

System.

2. Realizing vision through every day work and performance.

3. Continuously improving business in order to achieve their strategic goals.

Quality of Services

Ιn the scope of developing services that correspond to customers' needs, Sarb

Multiplex, has adopted a specific framework of systematically assessing quality of

services end-to-end, from their concept and planning phase until their delivery to the

market. This framework includes the following methods:

Service Evaluation 

Service evaluation is conducted aiming to ensure that new products and services are

designed, developed and implemented according to quality requirements, company

policies and processes aiming to meet customer needs. Quality standards of new

services and products are verified through specific benchmarking trials, prior and post

launch, against initial technical and quality specifications.

Quality of Service (QoS) Monitoring 

One of the most important methods for target setting and network development

prioritisation is to simulate and understand customers' perception on the use of movie

entertainment. The fundamental indicators demonstrating QOS achieved by Sarb

Multiplex – Daily customer turnover is the “Service Success Rate (SSR)" (the

percentage of successfully set-up, maintained and released calls, as perceived by the

customer), the "Customer waiting time"(assessing the speedy services) and the

“support service failure percentage” (evaluating the strength of support services).

Suppliers & Partners Performance Evaluation 

Sarb Multiplex in order to develop mutual trust and cooperation with its main

Partners, systematically assesses the quality of this cooperation. The assessment aims

to identify areas for improvement and to implement appropriate actions in order to

achieve mutual beneficial synergies

Participation in Sarb Multiplex Group Network & Service Quality Team 

Sarb Multiplex- Daily customer Turnover, aiming to measure quality of all services

and especially those conveyed on new technologies, participates in the Sarb Multiplex

Group Network & Service Quality Team. The purpose is to:

o Plan and introduce Quality of Service (QoS) indicators for services that are

implemented within the framework of large corporate projects

o Ensure the use of quality plans and measure their implementation

o Identify required changes in the company, in order to incorporate new services

and technologies

THE INTEGRATED GAP MODEL

For Sarb Multiplex the knowledge gap is high as information collected through survey is restricted to people who have already consumed their services, their information is based upon what other theatres who are offering same standard of service as they are offering in other geographical location. They have not been able to collect information about what customer outside their target market expect from them in order to gain additional market share. Though the information collected by them from their target customer is adequate and they have been able to reach their expectation level. But one thing that works well for multiplex is low level of bureaucracy and organizational layers so consumer expectations are directly derived to functional level.

The information collected through surveys is classified and interpreted well but for their target customers but information collected to increase market share is not adequate so planning done for their target group is what is expected from managerial level, goals of organization for their target group of customers are clearly defined and customers are satisfied but planning is not up to the mark for other group who can be their future customers. So standard gap which is GAP 2 is less.

The third level of GAP is low in Sarb Multiplex with clear cut defined role for each employee in the organization. Every employee is clear about the standard of quality needed for his work. For eg. A security guard know that he should keep proper vigil on every individual entering the premises, usher knows that he should lead every customer to his seat and take proper care of his comfort and convenience, a restaurant knows that standard of food should reflect multiplex’s image. There is no role ambiguity as every employee is clear about his place and duty. The support staffs know the importance of substitute services for customer and they are always ready to help. The technology used from presenting movie to toilets is really up to date. Proper co-ordination from parking keeper in the beginning to parking keeper in the end is up to the mark. Every employee has been appointed and given duty according to his ability which means proper job fit.

Sarb Multiplex always follows a policy of under-promising and over delivering. There is direct communication from managerial level to functional level and vice versa so the 4th GAP is very low.

SERVICE RECOVERY STRATEGIES

Service is involved with the need to satisfy the customer. Professional business firms

attempts to sell their competence and build reputation. Service organizations

occasionally make a mistake and might mistreat their customers. A good service

recovery can turn a disgruntled customer into loyal one and turn a frustrating

experience into a fond memory. One way to enhance service recovery us to motivate

the front line employees to identify problems and empower them to correct service

mistakes.

Sarb Multiplex's reputation depends on earning the trust of its customers. Their

loyalty is vital to the long-term success of their business. Important consumer issues

include the clarity of pricing, the responsibility of marketing material, the way they

handle customer privacy and measures to protect customers from inappropriate

content, contact and commercialism. They also address other consumer issues such as

enjoying social status along with standardized movie entertainment, safety and

cleanliness.

Customers can now access information and book ticket by registering on the site

which will save your personal information and it will not demand for information

when new booking is to be done not even login id and password as the site have

special features of saving login and password through cookies in Laptops/PC and

directly access when ever new access is made to site which make ticket booking all

the more easy. These technologies bring significant benefits to our business and

personal lives, but can also raise concerns about misuse.

Developing a Service Recovery Program

• Measure the costs

• Actively encourage complaints

• Anticipate needs for recovery

• Respond quickly

• Train employees

• Empower the front-line

• Close the loop

Dimensions of service recovery strategy

• Availability Product or service is easily available• Guarantee The personals are polite, kind and educated• Communication Clients receive information on all products and

services and their changes in the language they can understand• Expertise The personnel has the necessary knowledge and skills to produce

and sell products or provide services• Standard Products and services are up to the standard• Behaviour Kindness, good manners and care of the personnel towards

clients• Flaw Each quality that is not defined and affects the satisfaction of the

client• Duration Performance, service result or product last longer• Engagement The personnel shows understanding and gives individual attention

to each client• Humanity Product or service are provided so as to preserve dignity and

self-respect of the client• Effects Product or service produces the expected effect• Reliability Capability to sell products or provide services in a discreet and

Reliable manner• Responsibility Definite duration of providing of services• Safety Product or service are provided in the safest possible way,

without any kind of risk or danger

Recovery Strategies Replacement

Free ticket

Nothing

Apology

Correction

Discount

Manager Intervention

Coupon

Drafting Positioning maps:

Friends cinema

Laxmi CinemaLal Rattan

Krishna Cinema

The Sarb Multiplex has the best service in customer service and also the prices are

high as compared to other competitor in the market. They are the leader in the market

in the sector. (This comparison is for the Value Added Service provided by both

them). The other service providers are differently rated in the positioning map.

PRICING STRATEGY:

The Sarb Multiplex is following Value based pricing strategy as they base their

service as providing high end value to customers as compared to their competitors and

alternative services. Sometimes they use Optional pricing to increase the amount

customer spend once they start to buy. Optional 'extras' increase the overall price of

the service such as guaranteeing a window seat or reserving a row of seats next to

each.

High (customer service)

High Price (price)

Low (customer service)

Low Price (price)

Narendra Cinema

Sarb Multiplex

Sant Theatre

Jyoti Cinema Naaz Cinema

Sanam Cinema

EMPLOYEE AND CUSTOMER ROLE IN SERVICE DELIVERY

The servicescape of Sarb Multiplex is designed around a customer helping self with

the service .The role of service employees is limited. Customer performs most of the

activities, either on their own or with a little help from the provider. Examples are

ATMs, cinema hall, parking, entertainment and self service restaurants etc. The

service provider has planned the facility exclusively with the customer in mind. The

facility design attempt to position it for the desired market segment, by making the

facility pleasing and appropriate to use for them.

SERVICES CAPE

The importance of the servicescape (the physical facilities of a service company), the

effect of the servicescape on quality perception has been inadequately captured by

previous empirical research. The purpose of this paper is to examine the impact of the

servicescape on perceived quality in a more comprehensive way.

A REMOTE SERVICESCAPE

In Sarb Multiplex there are service settings where there is little or no customer

involvement in the servicescape. The servicescape here is an example of remote

encounters. These use remote servicescape. They are back office .The place has been

designed to keep employees’ motivated and morale high. The servicescape

premeditate ergonomically to facilitate teamwork, supervision and operational

efficiency.

Servicescape has been Designed Specifically by Using these Four Components:

Package

Total Servicescape ‘package’ and the services offered by Sarb multiplex communicate

an image to the customers of what they are going to get. It is the human

demonstration of the service idea for interest groups to form a shared appreciation and

observable image for an intangible service. They are predetermined to render an

intended image to the service concept and bring to mind a particular sensory and

emotional reaction that sets the stage for a useful experience that augments the

effectiveness of the offer. Appropriate servicescaping is a sure shot way to create an

image that the multiplex is seeking to put up. It also helps moderate customer

expectation and reinforces his experience and memories. Servicescape is an outward

appearance of organization and thus can be critical in forming initial impressions or

setting up customer expectation.

Facilitator

Another important servicescape of SARB MULTIPLEX is to act as and a facilitator in

assisting both the customers and service employees to make most of the opportunity it

should make the service consumption comfortable convenient for the customer. For

employees it makes pleasant to conduct activities. This setting is designed so as to

enhance or inhibit the efficient flow of activities in the service setting making it easier

or harder for customer and employee to accomplish their goals.

Socialiser

Design of servicescape in Sarb Multiplex aids in socialization of both the customers

and employees, conveying expected roles, behaviour and relationship. Compare the

servicescape of Sarb Multiplex provided with that of any other theatre of Jalandhar. In

other theatres a large part of the floor is marked as restricted, leaving little space in

the form of an arrow passageway along the outer walls of the hall for customers. The

message is clear –customer must not enter the restricted area, that is where the most

important job of the service, internal operations, is conducted and by entering that

area, customers will be interfering with that task. Whereas Sarb Multiplex approach

customers with convivability. The air conditioned lounge with comfortable seats and a

cold water dispenser as you pass through a spotlessly clean glass door, makes

customers feel welcome. They are allowed more space to move and occupying a seat

across from executive’s desks suggests that customer is indeed central to all activity.

The service with public operator also suggests that customers have a formal –official

relationship with public service users, whereas servicescape in Sarb multiplex

encourage relaxed- friendly interactions.

Differentiator

With the layouts a customer can make out what kind of operator it is. A dominance of

dark glowing colourful lights, cool environment high esteemed services differentiates

it from other theatres. Clothes and pre-laid cutlery differentiates a restaurant from

other with flour cent colours and pattern on the walls, blasting music, crowded with

young boys and girls and motorcycles and cars arranged in proper setting at parking in

front. Clearly the design of the servicescape differentiates one provider from its

competitors, and hints at the segment the services are targeted at. Companies adapt

servicescape to reposition the services or identify new customer segments.

Conclusion

Although it is useful from a strategic point of view to think about the multiple roles of

the servicescape and how they interact making actual decision about servicescape

design requires an understanding of why the effects occur and how to manage them.

The roles played by servicescape in a particular situation will aid in identifying

opportunities and deciding just who needs to be consulted in making facility design

decisions..

Practical implications – Service providers should give careful consideration to their

servicescape. In accordance with findings from environmental psychology, the

servicescape may not remain limited to tangible elements, but must also consider

ambient components such as odours and background music.

INTEGRATED MARKETING COMMUNICATION

Five components of IMC are:

Advertising: Multiplex is using this component through hoardings at places like PAP chowk, Domoria Flyover and it should focus on providing flex boards and signage at locations outside hotels and university/colleges campus.

Personal Selling: it is a main component of IMC. Sarb Multiplex can use it by employing sales force who can target people staying in hotel for 4-5 days in the city, college and university students who can provide on the spot booking

Public Relations: through offering high end full packaged services to their customers they are setting good public relation which in turn acts as self advertisement in form of positive word of mouth.

Sales Promotion: offering discounts on tickets for regular customer, booking of tickets for first day first show to customers’ often using service, giving special seats to customer in halls to frequent purchaser, making new customers their regular through their services.

Direct Marketing: this component can be used by taking feedback from customers coming out after watching show by random choosing them, this would develop a good customer relation as customer would feel that he has been given importance

DELIVERING SERVICES THROUGH INTERMEDIARIES

Intermediaries here can be the people who are selling ticket in black at rate higher than normal rate of show. These are not the permanent employees of theatre but are kept to provide intermediary service.

Intermediary can also be the websites which doesn’t have any connection with multiplex’s site but can book ticket and register.

Intermediaries are FM RADIO Jalandhar or any other TV channel which are providing tickets in the form of prize to listeners/viewers who have given correct answer to their questions.

Intermediary can be any showroom/company using sales promotion technique of providing tickets to watch movie in theatre when certain extent of purchase of their product has been made by customer.

MANAGING WAITING LINES Multiplex is open from all four sides and parking consist of aisles having multiple

lanes with rows of parking spaces between each one. Except for rather small lots, the location of the parking spaces for each vehicle is usually indicated with pavement markings or lines, similar to centre lines on streets.

Multiplex have multiple windows for taking tickets which consumes less time of customer.

Multiplex have got shopping mall, fast food court, kids zone where customer can utilize their time when the show is already going on.

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