MARKETING OF SERVICES PROJECT ON THE GAP MODEL ANALYSIS OF DOMINO S

SUBMITTED BY: SONAL SACHDEVA 10 PGDM 110

y Definition of Service: A "service" is defined as an entity that provides a useful function to its users. y Definition of Service performance: Performance indicates the response time of the service as experienced by the end user. y Definition of Service quality: The service is defined as "A set of quality requirements on the collective behavior of one or more objects". y The 10 criteria that customer rely on while evaluating the service quality 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. y Reliability Access Security Credibility Degree of customer understanding Responsibleness Competence Courtesy Tangibles Communication

Managing Service Quality The service quality of a firm is tested at each service encounter. If service personnel are bored, cannot answer simple questions, or visiting with each other while customers are waiting, customers will think twice about coming again make most of the service provided by them. They would look forward to get the similar services from their competitors. Customer expectations: Customers form service expectations from many sources, such as past experiences, word of mouth, and advertising. Perceived service is a product of service delivery and external communications to consumers. Customers compare the perceived service with the ex pected service.

 If the perceived service falls below the expected service, customers are disappointed.  If the perceived service meets or exceeds their expectations, they are suitable to use the provider again.
Successful companies add benefits to their offering that not only satisfy customers but surprise and delight them.

Gaps Model for improving service quality The gap model (also known as the "5 gaps model") of service quality is an important customer-satisfaction framework. In "A conceptual model of service quality and its implications for future research" (The Journal of Marketing, 1985), A. Parasuraman, VA Zeitham and LL Berry identify five major gaps that face organizations seeking to meet customer's expectations of the customer experience. Gap analysis generally refers to the activity of studying the differences between standards and the delivery of those standards. For example, it would be useful for a firm to document differences between customer expectation and actual customer experiences in the delivery of medical care. The differences could be used to explain satisfaction and to document areas in need of improvement.

Gap theory, or the Service Quality Gap model was proposed by Parasuraman, Zeithaml, and Berry in 1985. This models identifies the different sources of gaps or differences between the service quality that a customer expect to receive from a service provider and the customer perception of the service actually received.

Firstly, the model demonstrates how service emerges. The upper portion of the model includes phenomena related to customers, while the lower portion includes phenomena related to the service provider. The model identifies 5 different types of gaps. The first four gaps are called PROVIDER GAPS, and the last or fifth gap is called CUSTOMER GAP i.e., the gap as perceived by customer. The customer gap is the resultant effect of the four company gaps. To close the customer gap, the model suggests the four other gaps. 1) The Listening Gap/Knowledge Gap 2) The Design and Standards Gap 3) The Performance Gap/ Delivery Gap 4) The Communication Gap

OBJECTIVE:
To do a GAP analysis of DOMINO S.

METHODOLOGY:
I took the responses from 10 customers and also personally visited the restaurant and took the Restaurant Tour and tried to understand the mantra for their quality control and fast service abilities.

RESEARCH:
Parasuraman s conceptual model of service quality and the approach for defining and measuring service quality referred to as SERVQUAL can make a significant contribution to measuring the quality of modern learning processes. SERVQUAL model provides formal means to identify and correct gaps between desired levels and actual levels of performance. It is used by organizations to analyze certain processes of any division of their company.

Goal:
The main goal of this project is to find a general framework for assessing the quality of service at DOMINO S.

Method:
SERVQUAL applied to measure the service quality of the restaurant slightly changes the gaps defined in the traditional model. The new set of quality gaps, which will determine the overall service quality, would be as follows: Gap 1: Difference between consumer expectations and management perception of consumer expectation Gap 2: Inability to translate management perception into adequate service design Gap 3: Failure to deliver service as per design Gap 4: Difference between service delivery and external communication Aligning the model to the restaurants needs also changes the meaning of the service quality perceptual dimensions. These five dimensions are:
1. Reliability:

 Customers rely on Domino s for free home delivery within 30 minutes as promised  Customers rely on the Quality and Freshness of the food being served.
2. Assurance:

 Customers of Domino s are assured that the employees will attend them sincerely and take their queries well.  The employees always give assurance to their customers that they would be delivered the food within 30 minutes and that too hot and fresh.

3. Tangibles:

 The ambience of Domino s outlets is such that when a customer enters he gets a feel of it.  The packaging of food items is very good which keeps the food hot and crisp until it reaches the destination.  The ovens used are of the latest technology.  For the convenience of customers, Domino s provide plastic cutleries with the delivery.  It offers discount coupons with every purchase with the menu card  It also offers special customers membership coupons.  The pizza delivery boys are always neatly and professionally dressed.
4. Empathy:

 The employees at Domino s give undivided attention to the customers while attending them and taking their order.  They provide extra information to their customers related to the discounts and other offers which help in saving their money.  They always handle the complaints with care and positive attitude.  They help consumers looking for an affordable and value for money meal option.
5. Responsiveness:

 Being a responsible organization, Domino s keep on informing the customers about their changed and new menu items through advertisements.  Domino s understands that it is their responsibility to deliver their customers within 30 minutes which they are expecting.

SERVICESCAPE
It includes  PHYSICAL PRODUCT: The product of the company which is transferred to customer. These products can be seen & touched. In Domino s, there are various products that were transferred to the customers like, pizza (veg & non veg), Pasta, Garlic Bread, Cold Drinks. The pizza is made in many flavors as per customers choice.  SERVICE PRODUCT: Core performance purchased by the customer. It means in what manner the services are being provided to customer. Flow of events that are designed to produce the necessary outcome.  SERVICE ENVIRONMENT : Evidence: Whole Ambiance, Background Music, Staff s Uniform. In Domino s, the ambiance plays a very important part. It is the environment, ambiance, cleanliness, background music that attract customers to eat and to feel good about the whole process of entering the place and leaving the place.

Staff s uniform is also very major part of their environment because if their uniform are not good enough, the customer will have a very negative impact on him and may be do not bother to place order. So apart from the ambiance, the uniforms are also important part of their service environment.  SERVICE DELIVERY : planning your work and working your plan. The management of Domino s are really strict with their planning and implementing those plans which they working on. A Gap Model defines the various gaps or wrong understanding or lack of sufficient knowledge within the Company. Due to these Gaps the company may face huge loses and thus low market share. In Domino s, the objective of the management is to demolish all the gaps on the surface of the company. Now i have tried to analyse each of the gaps carefully for Domino s and tried to find out the reasons for the gaps and also the appropriate ways to close the gaps. Taking a further view of each of the gaps:

CUSTOMER GAP:
The difference between customer expectations from the service and customer perceptions of the delivered service. Customer perceptions are subjective assessments of service experiences. Customer expectations are the standards against which service experiences are compared. Addressing these gaps could be a basis for developing service processes in which expectations and experience consistently meet and a good perceived service quality will enhance. The aim is to reduce this gap by suitable strategic and tactical actions in marketing, sales, operations and communications.

GAP 1: NOT KNOWING WHAT THE CUSTOMERS EXPECT

Reasons:

Domino s customers expected variety of items in their menu which they did not provide earlier leading to the gap by not knowing what their customers expect. This gap arises whenever they have peak hours, that is, during day & night and at weekends. At this time the waiting time for the food to come is quite big . Generally a single pizza took 11 minutes to get prepared but at peak hours the service provider took 3 times more than the usual time. Hence this is the case of what time customer expected for his meal to be ready and what the management thought of time to prepare the meal. The gap can exist because there is insufficient or no dialogue between providers and users. It can also exist because the organisation is unwilling to investigate expectations or address the issues that do emerge. Failure to understand

expectations can lead to misuse of resources, e.g. investing in the physical environment or 'Servicescape' when it is not a customer priority.

Filling up of the Gap 1:

 There are a number of tools and techniques available that can be used to close
this gap. Among the more traditional are surveys, complaint systems and customer panels. Providers might also wish to consider formal brainstorming sessions or gap analysis. A marketer should always be in contact with his customer either directly or indirectly by way of franchisee or front end staff, etc. to know the changing customer habits. Domino s Pizza should introduce new products and schemes in order to be have customers engaged with them and to learn what else the customers expect from their services. A marketer should make efforts to know and understand consumer s needs, Preferences and changing tastes by way of customer interaction and feedback. Domino s already has customer feedback forum on their websites. Sometimes they also get feedback form filled in their outlets from customers who visit them. They pay importance to each of the suggestions received from customers and try to make the necessary changes to provide best customer service. Fast food is a very challenging and growing industry in India hence a marketer should always come up with new strategies based on effective market research in order to enter new markets, introduce new varieties in menu and build effective communication strategy. Proper segmentation of the market is also important to build appropriate marketing strategy, communication strategy and expansion strategy. Domino s has already considered this aspect. .

GAP 2: SERVICE DESIGN AND QUALITY STANDARDS

The difference between service providers understanding of customer expectations and development of customer-driven service design & standards. Reasons for gap: Dominos did not provide dine-in facilities earlier which are more preferred by Indian customer these days. The time taken to get the ordered food needed to be fastened up so that the customer is not kept waiting. People expect to receive a Domino s Pizza hot and fresh within 30 minutes of order. This is because of the standards this brand has set in the minds of the people. During peak hours, billing procedure takes a lot of time as the number of cash counters is less. There are times when the order is mismatched or wrongly delivered.

Closing up of gap 2:  They have started dine-in facility at all their new outlets with a capacity of 20-25 seats and planning to expand it.  Increase the number of cash counters in peak hours.  Based on the customer interaction and feedback a marketer should set service standards. When people visit Pizza Hut they expect a certain level of service with respect to food, attendants, ambience, cleanliness, etc. Hence, every effort should be made to set and implement service standards accordingly.  There should be quality control goals set and the employees should adhere to them.  Service design should be defined clearly. A marketer should make efforts to alter the service design according to changing customer preference and competition. There should be something new and innovative to attract the customers.  All tasks should be standardised at all the levels and outlets throughout.The task and entire service delivery process is standardised.

GAP 3: DELIVERING SERVICE DESIGN TO STANDARDS

The discrepancy between development of customer-driven service standards and actual service delivery or performance. Reasons: Person at the counter unable to take orders properly due to language problem and other issues like role ambiguity. Customers are not aware of the latest schemes before placing an order. The person providing home service should be aware of the routes because Domino s strictly follows the 30 minutes delivery system, orelse the pizza is given free of cost to the customer. The schemes must be made aware of through different forms of media. Filling up the gap:

 Increase the salary of employees.  Have a better recruitment policy for crew members.  Selecting right person for the right job is very important, especially in case of front end employees who are representatives of the company to the public.  Front end people should be trained to be able to relate to and deal with the customers in the most efficient manner. They should have knowledge of local language along with English and Hindi.  There is a proper program in order to train employees who join Domino s Pizza. Domino s Pizza empowers its employees to perform and gives a fair opportunity to the deserving to rise through the ranks.  Employees should be through of all the routes and places in that particular region where they serve. It is important that the bikers who ride in order to reach the destination and deliver pizza within the stipulated time don t drive

harsh as this may cause some accident and may hamper the image of the company.

GAP 4: NOT MATCHING PERFORMANCE TO PROMISE

The difference between service provider s external (marketing) communications and service delivery. Reasons:

This gap arises when the services are not provided as promised. That is, for example, in their advertisement they talk of Pizza in just Rs.199 but the actual cost of that pizza is more than 199 after including VAT and other taxes. The menu options must be increased, thereby increasing variety. That is what customers look for, change ! Customisation of combo meals should be made available because a customer may want to club their choice in the pan pizza or the meal menu.

Closing up of the gap:

 Customers should be communicated what you can deliver. Unrealistic promise might result into lose of a customer and also it may hamper the brand image of the service provider.  Advertisements should reflect actual picture of what is there for a customer, rather than attracting him with a good advertisement.  All the marketing decisions should be communicated to the internal employees. For example, if the production team doesn t know of the 30 minutes scheme how will it frame its module. At Domino s Pizza there is an 11 minute schedule to make pizza and 15 minutes schedule to deliver the pizza to its destination. Though there are certain terms and conditions.  Maybe the timing of opening could be advanced as office goers may at times drop in to have a light breakfast of pasta or so.

CONCLUSION
Domino s has been successful in having leadership position in certain areas. Domino s Pizza has always positioned itself as pizza delivery experts and they have been successful in having majority market share in home delivery segment. Further as competition is increasing in this industry they should focus on moving out of their comfort area and introduce new formats and strategies to retain their existing customers and attract new customers.

Domino s Pizza has already proved itself in the home delivery segment now they should concentrate on the dine-in segment as well. Domino s should increase variety in their menu, focus on the location of their outlets; improve quality of pizzas with respect to competitors. Also, it is important to provide customers with good ambience with they visit Domino s outlet . Strategies adopted by Dominos which gave a competitive edge over Pizza Hut: Domino's is an example for stability strategy. Its commitment on providing quality and quick service delivery has created respect and loyal customer base. The company's management has little or no interest to diversify into other areas. Uniqueness can be in the form of service. Domino s strategy to differentiate has been by its 30 minutes or free delivery service which is a competitive specialty and advantage towards its competitors. It was the one who came up with this different strategy after aggressive research. Domino s has clearly positioned and projected itself to be a market leader through its strategy to be fastest pizza delivery chain in industry, with 45% market share. Overall Experience: Customer is the king in the market and pleasing the customer is not an easy job! I had been given an opportunity to look into the workings at the restaurant the placing of orders, their confirmation to the customer before placing the order, the billing procedure and the delivery details. This overview gave me a vague idea of running a restaurant. Gratitude to Mr. Amit for helping me through the project and providing me the required information. Mobile no.9999994691.