Al Burger

Getting the Bugs Out

Presented By: Neeraj Singhal (Roll No. 32)

About the Company
• Burger Bugs Killers Inc. – 17 years old Miami Based Company
• Industry: Pest Control
• Company Stats:
– Revenue (1984) $ 25 million,
– Service Accounts – 12,000 Resturants & Hotels in 43 states
– No. of Service Specialists – 400
• Industry Size (Annual Sales): $ 2 billion
• Main Competitors:
– Orkin - $ 213 million annual sales
– Terminix - $ 160 million annual sales
• Area of operation: Niche Segment – Charges premium
• Company’s USP: Superior Brand Promise
- ‘Unconditional Promise to Eliminate (not control) Roach & Rodents’
- ‘ No payments due until Rodents eliminated’
- ‘Promise to refund entire money if Company fails, along with 1
year’s service by another Exterminator of company’s choice
 Discussion Questions

1. Identify the elements of Marketing Mix of Al Burger

2. Justify marketing implications of each of these mix elements

 Review of Literature – Marketing Mix
• The tools available to a business to gain the reaction it is seeking
from its target market in relation to its marketing objectives

Blend of the mix depends upon:

- Marketing objectives
- Type of product
- Target market
- Market structure
- Rivals’ behaviour
- Marketing position
- Product portfolio
- Product lifecycle

• Traditional Marketing Mix: 4 P’s

• Expanded Mix for Services: 7 P’s
Review of Literature – Marketing Mix Elements
PRODUCT PLACE PROMOTION PRICE
Physical good Channel type Promotion Flexibility
features blend • Traditional Marketing
Quality level Exposure Salespeople Price level
Mix: 4 P’s
Accessories Intermediaries Advertising Terms • Expanded Mix for
Packaging Outlet location Sales
promotion
Differentiation
Services: 7 P’s
Warranties Transportation Publicity Allowances
Product lines Storage Blend of the mix
Branding depends upon:

- Marketing objectives
PEOPLE PHYSICAL PROCESS
EVIDENCE - Type of product
Employees Facility design Flow of activities - Target market
- Market structure
Customers Equipment Number of steps
- Rivals’ behaviour
Communicating Signage Level of customer
- Marketing position
culture and values involvement - Product portfolio
Employee research Employee dress - Product lifecycle

Other tangibles
Product
 Marketing Mix Elements: Product
The Service
Concept
Augmented Service Offer

The Core Service

(Reason for being in the market)
- Pest Elimination

Facilitating Services Supporting Services

(Facilitation in providing (used to enhance the
services) value of core service
Accessibility Interaction
and to differentiate from
of Service - Employee Hiring competitors)
- Employee Training - Promise to refund
- Supporting routemen entire fees for
against losses beyond poor customer
control service

Consumer
Participation
 Marketing Mix Elements: Product
Product: Branding, Quality, Warranty, Post transaction service

• Brand Promise: ‘Elimination’ and not just ‘Control’ of Pests

• Quality: Burger’s Quality-Control system is extraordinary –

e.g. Routemen are assigned ‘Service Accounts’ for a day which
can be managed professionally unlike other companies who
assigns 18-20 Service accounts a day for its Routemen

• Maintenance\ Post Transaction Service: After sales reviews

by senior managers, customer feedback, Guarantee of
eliminating Pests – if company fails promise of refunding last 12
monthly fees along with one year’s free service from other
company

Implication:
• Brand promise helps in product differentiation and position
company in ‘Niche’ segment
Price
 Marketing Mix Elements: Price
Price: Quality-Price Relationship, Consumer’s Perceived value, Discounts

• Niche Service Provider: Company guarantee’s pest elimination,

accordingly Charges premium price for superior service. Charges
4-6 times more the services provided by competition
• High Customer’s Perceived value: Customers have high
respect for Al Burger company and its employees.

Implication:

• Loss of renewed contracts: Company loses > $ 2million

annually in un renewed contracts
• Cost of Service Guarantee: Company spends at $2K per month
on reimbursing diners / room guests for reported pest sightings
• Limited Market: Company operates only a niche segment; which
limits itself to enhance revenue
People
 Marketing Mix Elements: People
• People represent the business - Personnel Training, Commitment, Incentives, Inter-Personal
behaviour, Degree of involvement, Customer contacts, Management culture, customer service

• Management Culture: Company promotes (a) ‘Open Honest’ culture. At Bugs Burger,
‘Mistakes are forgiven; liar are not’ (b) Routemen is treated no. 1 in the company –
Employees are made to feel that they are critical to success of the company

• Strong Hiring Process: Elaborate personality & aptitude testing, polygraphic examination,
Interview by Officials from Headquarter and shortlisted candidate interviewed by local service
managers

• Employee Training: 5 months of intense training combination of both on the job and
classroom training. Tests conducted by higher officials in Miami to check techniques they
have been taught by field managers against the company standards

• Work life balance: Employees are given complete freedom to manage the clients as long as
they are keeping the client premises ‘Pests free’ and running the account as their own
business

• Employee Support: Service specialist don’t need to worry about losses from conditions
beyond their control, they are compensated for such situations

• Degree of Involvement: Employees not punished for asking support / help in managing
client. Top management roll up sleeves and come for help. It is not seen as ‘negative’
behaviour.

• Incentives: Employees are paid handsomely; performance linked - best in the industry
 Marketing Mix Elements: People

• Implication:

• High Employee Engagement: Company policies, culture,

training, freedom and incentive structure helps in maintaining
high employee satisfaction. Employees have sense of ownership
in running business.

• Low Attrition: High employee satisfaction results into low

attrition rate of 3% which is the lowest in the non glamorous
industry.

• High Customer Satisfaction: High employee engagement

coupled with low attrition helps in ensuring the highest level of
customer satisfaction.
Process
 Marketing Mix Elements: Process
• Process element consists of – Policies, Procedures, Customer
involvement, Flow of activities

• Bugs / Pest Elimination promise: Pest elimination techniques /

procedures / standards are set keeping customer promise in mind
• No compromise on Quality standards: Routemen are assigned nos. of
clients which can be managed professionally without compromising
service standards
• Strong Quality Control System:
– Review of Sales Reports filed by routemen by managers
– Customer care calls by District managers and not by any junior staff
– Regular Customer visits by Regional directors, vice presidents
– Customer complaint calls are routed directly to Miami Headquarter and not to
local offices or routemen – keeping local managers and service specialist
behave honestly
• Customer Involvement: Regular feedback from customers on service
quality and routemen behaviour.

Implication:
• Standard procedures and strong quality control systems helps company
in keeping up the brand promise and fight competition
Discussion Questions

Q3: If you are CEO of Al Burger, what

measures you will take to increase
your sales in 2 billion $ industry.
Justify your decisions.
BCG Growth Share Matrix: Al Burger Position

BCG Growth Share Matrix

Al Burger position
- Characterised by high growth potential
Low market share as compared to its
Competitors

. Industry size: $ 2billion annual

Competition:

Orkin Exterminating: $213 million PA

Terminix: $160 million PA
Al Burger: $25 million PA

Al Burger Dilemma: How to move from Question marks to Stars category

 Ansoff Product-Market Growth Matrix

• Market Penetration and Market

Development, two recommended
strategies for increasing sales of Al
Burger

Market Penetration - Least risky way to grow

• Focus on Aggressive Advertising and Promotion: Al Burger should hire
experienced Marketing staff and pursue aggressive advertising and promotion
campaign to gain market share / new clients
• More efforts to retain existing clients: Company can achieve this by introducing
loyalty programs for its existing clients; introducing loyalty based pricing
• Adopt Franchisee route to expand operations: Company should also adopt route
of franchising to penetrate further into existing markets (same customer segment) /
new geographies
 Ansoff Product-Market Growth Matrix

• Market Penetration and Market

Development, two recommended
strategies for increasing sales of Al
Burger

Market Development – Higher risk as compared to market penetration

• Develop new markets / Customer segment: Currently Al Burger service only
Resturants and Hotels. It should expand its market to include Offices and Homes as
new Customer segments
•Acquisition and / or Franchisee: Company can look to acquire companies and / or
have franchisee model to enter into new markets segment
Thank You