Case-8-Accra-Beach-Hotel Analysis

Mc Donalds and pipe returns merchandise 2011 Submitted By Ankit Singh Mc Donalds and underground remit of Contents pump serve up AND VARIOUS SUPPLEMENTARY SERVICES.. 5 FACILITATING SERVICES .. 8 ENHANCING SERVICES .. 0 inviolable AND SOFT SERVICE STANDARDS .. 11 CHANNELS OF SERVICE DELIVERY .. 14 COMMUNICATION MIX .. 16 SERVICE BLUEPRINTING.. 1 SERVICESCAPE . 23 SERVICE QUALITY hatch carriage MODEL AND QUALITY DIMENSIONS .. 28 price STRATEGY 35 Critical abstract 2 3 Mc Donalds and resistance Table of disc in whole overs see to it 1 SubWay Flower of Service 6 Figure 3 Facilition Services 7 Figure 2 McDonalds Flower of Service Figure 4 Communication Mix 16 Figure 5 Role Of Communication Mix .. 19 Figure 6 McDonald Go Global acquit Local 20 Figure 7 Mc Donalds Blueprint 1 Figure 8 sub counseling-Blueprint . 22 Figure 9 Service Gap Model 28 Figure 10 Characteristics and Evaluation Out receives .. .. 29 Figure 11 Strategies to influence apprehensions 0 Figur e 12 McDonalds Pricing 36 Figure 13 SubWay Pricing 38 Figure 14 SubWay & Mc Donald s Pricing Strategies.. 41 4 Mc Donalds and underground CORE SERVICE AND VARIOUS SUPPLEMENTARY SERVICES SUBWAYSUBWAY has come a long way in India since it opened its first eating beat in India. Young Indians comport warmed to the plan of the American chain, and made it one of their favorite places to swarm to, and hang come forth in. tube has very successfully total down the Indian market and sustained its growth by developing a fantastic menu to appeal to the Indian taste. If you ar a foreigner chideing India, you tycoon be evoke in indulging in some of the Indianite treats at subway for example, the legendary paneer tikka machinate. Also, as an Indian you expertness be interested in some of thermionic valves Continental treats like the Italian B.M. T. tubing offers a wide admixture of submarine sandwiches and salads on its menu. It offers an assortment of vegetarian and non-ve getarian fargons. They too cater to the health-conscious clients by providing them with 97% fat free subs. Subway offers a separate military posture menu for breakfast. Apart from subs and salads, they in addition reserve emplacement dishes like cookies, desserts and beverages. Subway replete(p)lyows customization of sandwiches by offering a variety of gourmet breads, different kinds of flavo wild shopping mall, blank and exotic vegetables and variety of sauces, both low and spirited-pitched calorie.Following the Think Global, Act Local policy, it offers ingredients specific to the locations for instance, it offers halal meat in Hyderabad. MCDONALDS McDonalds is without a doubt the worlds largest and fastest growing eating places in the world, serving victuals and imbibing to 38 million nodes daily. Right from its inceptions with creation multi-billion dollar promptly service restaurant, hamburgers and fries demand always been at the front of McDonalds menu. up t o now, their menu has expanded keeping the taste and the lifestyle of the local nodes in brainpower.Its extensive menu in addition offers a full range of desserts, hot and cold fuddles to cater to everyone. McDonalds vestigial strategy for success in the Indian market is- Local sourcing is the key for Truly Indian products. earlier to its launch into India, it arrangeed six old age to develop its unique cold chain, 5 Mc Donalds and Subway enabling nodes to enjoy highest smell products, absolutely fresh and at a great value. Keeping the nicety of India in mind, McDonalds does not offer apiece beef or pork items. It has developed a specialty menu unique to the Indian palate with a variety of vegetarian and non-vegetarian selections.They atomic number 18 overly conscious plentiful to prepare vegetarian feed separately and this separation is maintained by means ofout the various stages of supplying. So much so that the mayonnaise and the soft serves are as well 100% vegetarian and its drops yet vegetable oil as a cooking medium in India. They also affirm an exclusive menu for breakfast. McDonalds also caters to the tastes of the local people. In Hyderabad, they offer Halal Meat for the non-vegetarians which they quite explicitly convey to its clients through a signage.The efficiency with which the rung at Subway and McDonalds serves the guests is enhanced by the range of services that supplement the core service. Following the charge of services approach, the topn figure shows the services that support the core service at Subway. FLOWER OF SERVICE FOR SUBWAY Figure 1 SubWay Flower of Service FLOWER OF SERVICE FOR MCDONALDS 6 Mc Donalds and Subway Figure 2 McDonalds Flower of Service These services can be broadly cliqueified as facilitating and enhancing services In foundation Ordertaking Billing Payment Facilitating Enhancing Figure 3 Facilition Services point of reference Hospitality Safekeeping Exceptions 7 Mc Donalds and Sub way FACILITATING SERVICES INFORMATION Information to guests at Subway is provided through different ways deportions in case of Subway, they provide a signage to direct the customers to the vegetarian and the non-vegetarian yields. Also, both Subway and McDonalds have user-friendly websites w presentin customers can log on from any place at any metre to locate their nearest stores. outlays Prices of the different items of food procurable at both Subway and McDonalds are displayed on a display board. Apart from that it also displays he prices of the other(a) side dishes which the customer might want to buy. Instructions on using core product Since Subway is a made-to- sanctify restaurant where a customer has full freedom to customize his sandwich, for a first-time customer, at that place are instruction sheets at both, vegetarian and the non-vegetarian foreknows that instruct the customers on the steps to follow to place an recite for a sandwich. It also lists down the varie ty of ingredients and gourmet breads that it offers to its customers. Notifications At Subway, they are prompt profuse to notify its customers of any technical problems that might strike inconvenience to them.At times, when the toaster is not in working condition, they put up a notice communication the same. Both Subway and McDonalds also notify the customers of any promotional or jazz group offers for the day through posters and leaflets. They allow customers to sign up for offers on the net to get regular notifications on circulating(prenominal) offers and current news on Subway. Conditions for service At McDonalds, they promise to deliver the nightspot within minute, at position time slots, else they give in a soft- draw free to the customer.This breeding is very explicitly manifest to make certain(a) that no customer misses to notice it. ORDER FULFILMENT 8 Mc Donalds and Subway The give entry methods followed at Subway are On-site order fulfillment Here the customers are served instanter as the orders are placed. Once the customer has decided what to eat, that is, a sandwich or a salad, he moves on to the next step where he chooses bread from a variety of gourmet breads for his sandwich. He also decides the size of the sandwich he would like to have, that is, 6-inches or foot-long.In the next step the customer gets the option of adding otiose ingredients to his/her sandwich like double layers of meat or extra cheese for better taste. He accordingly chooses the assortment of vegetables he would like to have. The last item on the list of ingredients is the variety of sauces that subway offers. The customer might want to supplement the sub or salad with his choice of drinks. At McDonalds, they follow an on-site order fulfillment method too, where they promise to deliver the orders in a minute, else they give a soft drink free.McDonalds also allows its customers to enjoy its meals while they are on their move. Through McDonalds Drive Thru, custom ers enter the drivethru, place their orders and resolve past up within minutes. Web-site order placement McDonalds allows its customers to become members which in turn serve ups them place orders online. name order placement Subway also promises an express delivery facility to offices and home which allows customers to place orders through phone. McDonalds provides home delivery service to its customers with no restriction on the minimum order.However, they charge an additional tilt of Rs 20/- per order irrespective of its size. BILLING The billing process goes very systematically. A typical customer would start by placing orders looking at the display board. As he makes his order, the amount collect is displayed on the machine after each item is entered. Once all the items have been recorded, the billing machine displays the fare amount due. The person who is recording also verbally states the amount due as a confirmation. The government note is generated and the defrayment is made.The billing process uses all the four elements, namely 9 Mc Donalds and Subway Invoice for individual transactions Verbal statements of amount due Machine display of amount due PAYMENT Payment at both Subway and McDonalds is done using the conventional method of payment through cash or card. The customer is allowed to make payment through credit card only above billing of a certain amount. Also, they provide coupons and vouchers through newspaper inserts, which can be redeemed by the customers. ENHANCING SERVICESCONSULTATION The round at the counterpunch provides customized advice to customers who are visiting both Subway and McDonalds for the first time. They also help customers decide on what orders to place and which combo offers to avail. HOSPITALITY Subway is seen as a place to hangout with friends. customers, mostly the younger generation go to Subway when they need to sit, eat and drink with their friends. Also, a Subway outlet is usually never jam-packed with cu stomers, thence at that place is never a queue to enter or place orders. Thus, on that point is never a need for waiting space.The customers could also sit for as long as they want without being asked to leave. McDonalds offers high quality products at affordable prices which it promises to serve on time. They have a policy of greeting every customer with the traditional Welcome to McDonalds, How may I serve you. A lot of importance is given to the smile during the greeting. Each McDonalds outlet has a washroom for must. 10 Mc Donalds and Subway SAFEKEEPING Subway provides the perfect ambience by ensuring that the outlets are clean, the seats are come upspaced out and it allows the customer to sit back and relax.Their packaging for take always is also ecofriendly and attractive. McDonalds is driven by the philosophy of Quality, Service, and Cleanliness & Value for Money. This translates into a commitment to provide customers high quality products, served right outdoor(a) with a smile, in a clean and attractive environment at an affordable price. This effectively means that the McDonalds menu is priced at a value that the largest segment of the Indian consumers can afford while at the same time ensuring that quality is not sacrificed for value. The packaging at McDonalds for orders ike Happy Meals which most of the times contains quick Toys and other such items are a major attraction for the kids. These Happy Meals have different toys which when collected pull up stakes form a set. This in turn, attracts children and profits the sales. EXCEPTIONS Subway caters to the demand of the health conscious customers by providing them 75% fat-free subs and salads. Also, Subway has a policy of getting a feedback form filled by its customers. with child(p) AND SOFT SERVICE STANDARDS MCDONALDS McDonalds aims to provide 100 percent total customer satisfaction.In order to come upon this goal , McDonalds relies on its operating philosophy based on QSC & V Qual ity, Service, Cleanliness and Value. McDonalds believes that customer satisfaction is crucial to the success of the brand and all restaurants must arrange to the timeworns. These standards are used in both society owned and licenced restaurants. QUALITY Hard Standards 11 Mc Donalds and Subway topper ingredients This is achieved by its commitment to sourcing all its requirements from local farmers and suppliers. Before entering India, the partnership spent six years and Rs. 50 crore to set up its supply chain. In India McDonalds pioneered the cold chain management which helps keep vegetables and touch on products safe for a longer time. Potato farming in Gujarat Radhakrishna Foodland (Distri stillion partner) focused all its resources to meet McDonalds expectation of Cold, Clean and On-time Delivery. Trikaya Agriculture (Supplier of fresh Iceberg lettuce) uses a cold chain to store and fascinate lettuce to maintain freshness all year round. Pre-cooling rooms ensure field to 2 degrees in 90 minutes.Dynamix Dairy (Supplier of cheese) has a completely computer controlled automation equipment to supply cheese to McDonalds. Vista Processed Foods Pvt. Ltd (Supplier of weakly interacting massive particle and vegetables) has storage facilities to maintain temperatures as low as -35 degrees to ensure freshness. Preparation Standards Best quality govern ingredients ensure standardised preparation standards can be followed. both product has a fixed occasion of preparation. However, newer McDonalds stores offer MFY (Made for You) where the product is made only after the order is placed. Other standards Use first in first out (First in First Out) for all inventories.Reverse osmosis water treatment plant outflank technology for water nuance at every outlet to provide water. Strict standards for vegetarian products including eggless mayonnaise and eggless icecream. SERVICE Some soft standards followed by McDonalds staff are Welcome every customer with a smile a nd are sincerely friendly at all times 12 Mc Donalds and Subway Deliver arranged standards of hospitality Seize opportunities to interact with customers in a face-to-face and positive way Be thoroughly informed more or less product contents and nutritional cultivation Always appear clean and well groomed.Hard standards Serve fresh and hot Serve within one minute of receiving order or give a free coke. This is implemented in a some outlets and is not applicable during beak hours. Cleanliness and hygiene The counters, tables, floor area are to be kept clean at all times. All staff required to cover their heads and wear gloves when within preparation area. All these standards are evaluated by mystery shoppers and rated. This is called a RVR Restaurant Visitation Report) which provides a snapshot of the stores performance over a period of a few hours. The stores are graded either A, B, C or F.SUBWAY No information is available on the overweight standards followed by the compan y. Below are some soft standards Subway has laid out. Quality All clobber, vegetables, sauces, meat and cheese have to be sourced from the supplier certified by Subway. Franchises cannot procure from other non-certified suppliers. All material has to be stored at specified temperatures to ensure freshness. All franchises are required to abide by the funds Certification standards of Subway. Cleanliness All employees must at all times wear gloves while do a sandwich or handling material.All employees must at all times wear a shaping covering their haircloth to ensure hygiene. Service The employees should greet the customer with a smile. 13 Mc Donalds and Subway They should help customers choose combinations to customize their Subway Sandwich by making suggestions. During calls for home delivery, all the requirements of the customer should be attentively noted and followed. CHANNELS OF SERVICE DELIVERY SUBWAY Subway uses Franchising as its channel of delivery. Subway currently has 35340 restaurants in 98 countries. This is being followed by Subway from its inception.As all franchisers, Subway requires each store to operate by the strict standards of quality, service and cleanliness defined by the company. The Subway franchise ensures that safety measures are taken by all its franchisees to provide quality food. All employees need to use gloves at all stages of food handling. Members of the specialty food franchise have to attend a educate course in their local area in order to provide needed information to their employees on this regard. Fresh food stock preparation and temperature regulation helps the fast food franchise to keep up its high standards of hygiene.It is to provide the necessary specs on the directs of cleanliness to be maintained by franchisees that the Subway franchise initiated primty Standard policies. However, thither have been several problems faced by Subway along the way. Quality standards in that respect have been several compla ints from consumers all over the world regarding quality issues of vegetables, meats and sauces used in Subway sandwiches. intimately of these issues arise due to improper storage of materials in the store. Temperature controls arent maintained resulting in spoilage and wastage.Legal woes Subway has faced more legal cases than most other franchises. Franchisees complain that point one slip results in threatening letters from the head office. Or complaints regarding too many stores opening in the nearby areas resulting in cannibalization. 14 Mc Donalds and Subway Many instances have been cited by franchise holders where Subway has unfairly penalized them. MCDONALDS McDonalds is the worlds leading global foodservice retailer with more than 33,000 locations in 118 countries. McDonalds has several company owned stores, but uses Franchising for both domestic and international expansion.McDonalds India was set up as a 5050 joint-venture amongst McDonalds at a global level and regional Indian partners such as Hardcastle Restaurants Private extra in western India, and Connaught Plaza Restaurants Private Limited in northern India. McDonalds currently has over 220 restaurants in the country. McDonalds doesnt provide any monetary assistance and absentee ownership of finance is not allowed. Also, the financial requirements are quite steep. MFY- In order to implement the MFY (Made for You) option for customers, the franchises are required to boost their equipment at their own expense.This caused some problem with maintaining standard service across all outlets. Pricing and menu may also be a point of difficulty for the franchiser and franchisee as prices vary among company owned and franchised stores. Inconsistent standards- There are several instances of poor service or disgruntled customers complaining about the quality of food served. This is because it is difficult to enforce the exact same standards in all franchised stores. 15 Mc Donalds and Subway COMMUNICATI ON MIX COMPANY international Marketing Communications Advertising Direct Marketing Sales onward motion macrocosm RelationsInternal Marketing Communications Vertical Horizontal PROVIDERS interactional Marketing Communications Personal Selling CUSTOMERS Customer Service Centre Service Encounter ServiceScapes Figure 4 Communication Mix The diagram above clearly explains a generic model for communication which is being implemented by services based companies in the world. The communication model is divided into 3 split as clearly seen abovea) Internal Marketing Communications It company should manage the information and its coalesce from company to employees in order to accurately and consistently reach to customers who are hearing and seeing it. ) External Marketing Communications These are the channels (not under the companys control) through which the company disseminates the information to its customers. These channels provide equal opportunities to all the companies for commu nication to masses. 16 Mc Donalds and Subway c) Interactive Marketing Communications These channels are in direct contact with the customers when it experiences the services in form of servicescapes, service encounters, Customer Service centers and companys frontend employees.Mc Donalds Extracurricular Crew activities, Free employee meals in the restaurant, MahaBucks Performance-linked pay, potash alum Career Advancement Programme, In House Training Courses Employee of the Month Newspapers, Magazines Television, Radio, Movies Hoardings, Pamphlets, Banners Emails Websites, Banner Ads, M-Commerce Movies Coupons Combo Meals, Corporate price reductions Nickeldon Toys HCL Laptops Every Month press releases, News Yes Childrens Day , Birth Days Bollywood Actors Subway Extracurricular Crew activities I N T E R N A L Horizontal Company Policies VerticalIn trapping Training, Performance-linked pay Employee of the Month Newspapers, Magazines Television, Radio Hoardings, Pamphlets, Banners, vehicle advertising on Cabs Emails Websites, Banner Ads, M-Commerce Movies Coupons Goodies , Corporate Rebates No No Internal Branding Branding Through Employees Print Broadcast S E R V I C E M A R K E T I N G Advertising Outdoor Direct Mail Internet & Mobile Discount Coupons Rebate E X T E R N A L Sales Promotion Gifts(Toys) Co Promotional Activities Press Release News Yes World Health Day Sports Persons 17 Public RelationsSponsorship Shows, Exhibitions & Special Events Media Coverage Mc Donalds and Subway 1. McDonalds retail outlets to encourage young voters for the Lok Sabha elections. 2. McDonalds ties up with Symbiosis Institute Facebook , Twitter C O M M U N I C A T I O N M I X CSR Activity Fit to Hunger Social Media Facebook , Twitter, YouTube Confirmation Calls for Home Delivery Personalisation and Customization of Sub. NO Countrywise Website NO Customer Service Personal Selling Sales Executive Tele- Marketing Confirmation Calls for Home Delivery look into and giving alter natives for better Deals.NO Countrywise Website NO I N T E R A C T I V E Instruction Material Website Brochures Catalog Signage Interriors Servicescapes Mascot Stationary Employee Uniform out-of-door Encounters Name Boards Kids Zone, Interior Menu Board Ronald Donald Mc Donalds on tissue Paper ,Tray Paper and act Sashes Dress Code Online orders Placing orders on phone At Franchises Name Boards Normal Interiors NO SubWay on Tissue Paper & Tray Paper Dress Code Online orders Placing orders on phone At Franchises Service Encounters headphone Encounters Face to Face 18 Mc Donalds and Subway Role of the Various Communication MixFigure 5 Role Of Communication Mix 19 Mc Donalds and Subway Figure 6 McDonald Go Global Act Local 20 Mc Donalds and Subway SERVICE BLUEPRINTING Figure 7 Mc Donalds Blueprint 21 Mc Donalds and Subway 22 Figure 8 Subway-Blueprint Mc Donalds and Subway SERVICESCAPE It is a well known fact that the environment in which a service is executed is important. They phys ical environment or the Servicescape provides cues about the quality and instance of the service quality and character of the service, cues that consumers look for both before and after buying and that affect their experience of it.Typology of McDonalds and Subway based on variation in form and Use of the Servicescape Servicescape Usage Complexity of the Servicescape Elaborate McDonalds Subway Interpersonal Service-Both customer and employee MCDONALDS McDonalds recognizes culturally defined expectations in allowing its franchisees around the world tremendous freedom in designing their Servicescape. McDonalds strategy is to have restaurants worldwide reflect the culture and community in which they are found. Elements of Physical Evidence installment out-of-door Exterior Design McDonalds design exhibits a experience of Forever Young look with blinding red and yellow colours appealing to the children and establishing its family restaurant positioning. The building provides a practi cal, contemporary design that aligns with the McDonalds brand aroma while accommodating the latest operational and consumer experience standards. Their mascot Ronald Mcdonald is also present outside each of their restaurants. McDonalds 23 Mc Donalds and Subway always have all glass restaurants.McDonalds has always clearly determine and managed the various clues that customers use to form the impressions and feeling about their company. In addition to this, McDonalds has separate take away counters in order to save time of their patrons. Signage All of McDonalds external signage reads as, McDonalds-Family restaurant. Also keeping in mind with the local language, all McDonalds restaurant have their name boards in Hindi. McDonalds strongly believes in adhering to the local sentiments and hence none of the outlets in India sell Beef products and every restaurant has this mentioned.Also McDonalds, strongly believes in glass stigmatisation for any new products or services they offer. Mo st of the communication is designed to cater to local tastes and preferences. lay/Landscape/Surrounding Environment All McDonald outlets are located are accessible and present everywhere thus capitalizing on brand recognition. Most of the McDonalds have their own restaurants and hence the seating space available is exclusive to McDonalds patrons. Also McDonalds offers proper parking facilities for its highway restaurants. Facility InteriorAll McDonalds outlet are standardized in terms of layout and have proper in-store stigmatisation. The 24 Mc Donalds and Subway Young and smiling(prenominal) design concept is a progressive, youthful, and energetic environment with open views for social interaction. All McDonald outlets are big with proper aisles and passages with appropriate signage for seating arena, lavatories, wet floor and food counters. McDonalds has a Made for You food preparation platform. MFY is a unique concept (cooking method) where the food is prepared as the custome r places its order.This cooking method has helped McDonalds further strengthen its food safety, hygiene and quality standards. McDonalds also has illuminated Menu boards that offer a mix of both vegetarian and non vegetarian burgers along with other savories and drinks. McDonalds also has proper queues for placing order and often there is a executive who assists you in order placing. Also McDonalds gives toys for children thus making them wanting to come back. The other visible cues are color, lighting, in-store medicine, employee uniforms and trays with literary.McDonalds has ample in store lighting and directly in? uences an individuals experience of the de? nition and quality of the space, in? uencing his or her certifiedness of physical, emotional, psychological, and spiritual aspects of the space. The bright McDonald stores ensure prompt handling and military rank of products. In all McDonald stores the lighting is perceived as more pleasant than other fast food environments . The color object that McDonalds uses exhumes cheerfulness and warmth. Red depicts vibrance, cheerfulness while yellow depicts friendliness and brightness.At McDonalds, music is a positive auditory cue stimulating specific consumer behaviour and emotions. Music appears to influence buyer-seller interaction. There is sound recording played about the latest offers and products. Also a balance and constant sound creates a pleasant sound environment. All employees at McDonald are provided with uniforms and name badges along with caps with McDonald signature M arch. Employees are also trained with appropriate soft skills to address customers. Every employee or front line executive greets the customer and switchs pleasantries 25Mc Donalds and Subway which makes them happy. McDonalds also has the policy of serving within one minute or they give free redeemable coupons on the next visit. SUBWAY Elements of Physical Evidence Facility Exterior Subway sandwich restaurants are often simple eat outs using minimal architecture and traditional branding with yellow and white shades. The facility exterior often gives a look of freshness and is located amidst other eateries in food courts of malls or recreation centres. Signage The signage at every Subway store is uniform as per international standards.The store size is largely small and hence there is no room for enough glass branding. Unlike McDonalds, Subway doesnt have extensive branding on door panels and windows. Facility Interior The size of any Subway outlet is small in relation to McDonalds, Also, since Subway outlets are located in multiple eatery zones they do not have an exclusive seating arena for its patrons. However the exclusive Subway stores has minimal seating arena. The in-store lighting is sufficient however not exclusively bright as seen with McDonalds.The color scheme used in all subways is Green depicting a sense of Freshness. Most of the subway outlets have the aroma of freshly baked cookies that dr aws one towards it. The employees have a proper uniform and our courteous. Also the person who takes your order is the same one who prepares your Sub thus allowing more time for interaction. Since every Sub is customized as per the customer it takes time. 26 Mc Donalds and Subway However all the ingredients used are fresh and thus adhere to Subway-Eat Fresh strategy. Roles of ServicescapePackage McDonalds Strong visual metaphors, right from its outlets to the employees to the trays to catsup cups Well designed outlets with appropriate with signs, appropriate ventilation and proper seating arena The goal of being the customers third place is achieved with comfortable chairs, children play arena for customers to interact Red and Yellow colour scheme along with McDonald branding to differentiate from others. Subway Visual metaphors in the form of wrapping paper, beverage cups. low outlets or kiosk with minimal signs and few seats. More of a restaurant to have a quick bite. Facilitator Socializer Differentiator Regular branding 27 Mc Donalds and Subway SERVICE QUALITY GAP MODEL AND QUALITY DIMENSIONS Figure 9 Service Gap Model The five gaps that geological formations should measure, manage and besmirch Gap 1 (listening gap) is the distance between what customers expect and what managers think they expect Clearly survey explore is a key way to narrow this gap. Gap 2 (standard and spec gap) is between management sensing and the actual specification of the customer experience Managers need to make sure the organization is defining the level of service they believe is needed. 8 Mc Donalds and Subway Gap 3 (performance gap) is from the experience specification to the delivery of the experience Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the specification Gap 4 (communication gap) is the gap between the delivery of the customer experience and what is communicated to customers All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer wisdoms.Finally, Gap 5 is the gap between a customers cognition of the experience and the customers expectation of the service Customers expectations have been shaped by word of mouth, their personal needs and their own past experiences. Routine transactional surveys after delivering the customer experience are important for an organization to measure customer perceptions of service Service Quality dimensions ? ? ? ? ? ? ? ? Tangibles Physical evidence of service Reliability organic structure of performance and dependability Responsiveness Willingness/readiness of employees to provide service in timely manner believability Trustworthiness, believability, honesty Security Freedom from danger, risk, doubt Guarantee , Certification Competence Possession of required skills to perform service Access Approachabi lity and ease of contact Courtesy Politeness, respect, consideration, friendliness E Empathy Assurance Figure 10 Characteristics and Evaluation Outcomes 29 Mc Donalds and Subway Figure 11 Strategies to influence expectations SUBWAYLocation metropolis Centre Mall, Banjara hills, Hyderabad Mode of service delivery mainly ego Service Model Number of visit 3 (to check reliability) In our visit to SUBWAY there we had initial perception about the subway of low calorie fast food alternative which is quick and fresh. Reason for this perception was first off their tagline EAT FRESH and their commercials starring Jared who had lost something like 150 pounds by eating an all-Subwaysandwich diet. Finally we also had in mind that there will be offer of day SUB OF THE DAY with this perception when we visited to SUBWAY there was no disappointment at all.From their nutrition charts we could make out that we can have skillful low calorie food. This was perceptible cue on the counter making us aw are that they provide what they convey. But best was, they were also having option of normal full of calorie diets for those who like it that way so in our group no one has to compromise. One of the service facilitator for us their separate VEG and NON VEG counter and their separate preparation counter. * check till this place actually stiffen the communication gap as we were getting all we expected and it was in level of tolerance service zone so it was a unattackable service.Dimension for service in terms of 30 Mc Donalds and Subway tangible quality was adept as employees were properly dressed, vigorous and clean area, faithful seating arrangement but in combination with other restaurant and finally high-priced ambience with music. After looking at this entire scenario there was assurance that food delivered will be advantageously and in accordance with expectation. We were quit conscious with the quality because of the brand image they have in the market. Finally they repl ace the food if something goes wrong this also increase assurance from their side which is generally unsaid case for all the restaurants.Now further we went to place our order, here we were having ample of tangible cue (physical evidence) which helped us in making the decision, what to order? Further all information about the sub of the day was provided and people were assisting if extra information was required. Finally after billing we went to counter which were situated adjacent to each other to place order. We got customized subs and employees we continuously asking the way we want from which grub to what and how much inside that loaf in the same charge. That was a good experience.Finally we had our food and as currently we were finished person came and immediately cleaned the table. *Experience Regarding the tangible cues, were quiet evident as person making sub was wearing gloves and hair cap. Fresh plates were served. All products of papers and plastic were recyclable. Qual ity of food was good as they were fresh and prepared in front of eyes in accordance to our taste. This actually reduce performance gap as they were pretty good in the employee end. Service delivery was also in time there was no standard and specification gap. Listening gap was not there as they actually served the food in the way we asked them to prepare and there was no mistake in any of our food. Even each person (employee) was well versed in Hindi, local language and English. Empathy wasnt that great as they were polite but were in rush as customer were waiting because there were only two person preparing the sub so they have to rush. They were quiet responsive to what were ordering and still when we ask to clean table again it was done immediately. Quiet reliable service as they delivered all aspects equally to all of us and in our every visit.They also asked us to fill the feedback form that was good and person requested to do it. Service gap- Due to lack of loose small denom ination coin we were not refunded Rs. 10 change even after 45 min when we were going back. They assured that they will do it when we are returning but still it didnt happen. They dont provide the timeline in which you will get your order so if there is rush you 31 Mc Donalds and Subway have to wait long. Even if we have to wait there is no magazine or tv set which make time cross by ease. Finally common sitting arrangement which make their customer dependent on rush in other restaurant.This can be reflected in low standard GAP and finally to performance gap in case of return of change. This will affect customer faith to their assurance level. Finally there was no operational cues format so disorder of cues was frame in to happen. Mc DONALD Location City Centre Mall (1st floor, Banjara hills, Hyderabad) Mode of service delivery mainly Self Service Model Number of visit 3 (to check reliability) In our visit to Mc DONALDS there we had initial perception about the mc Donalds of tasty food with fun and basically reasonable family and friends restaurant.Reason for this perception was firstly their tagline I m lovin it and their adds on different places with packaging and also else were. Finally we also had in mind that it will be not costly at all. When we reach there it was different then subway in many respect firstly, multiple delivery counter and no separate counter for VEG and NON veg. separate sitting space and even different private meeting hall. Nice ambience, good music and clean place to enjoy food. There were multiple counters each taking order then and there and no customization. Here look at menu and order whatever you like from the menu.Lot of tangible cues which help in deciding meal and there were lot of complementary priced meals options. It is for the entire segment who seeks value for money apart from quality. *Experience till this place actually reduce the communication gap as we were getting all we expected and it was in level of tolerance se rvice zone so it was a good service. Dimension for service in terms of tangible quality was good as employees were properly dressed, hygienic and clean area, good seating arrangement. After looking at this entire scenario there was assurance that food delivered will be good and in accordance with expectation.We were quit assured with the quality because of the brand image they have in the market. Finally they replace the food if something goes wrong this also increase assurance from their side which is generally unsaid case for all the restaurants. Now further we went to place our order, here we were having ample of tangible cue (physical evidence) which helped us in making the decision, what to order? Further all information about the meals which we generally happy meals were provided and people were assisting if extra information 32Mc Donalds and Subway was required. Operational line management were there apart from lot of counters and for entertainment they have television ads ru nning around so even peak hours and even waiting was easy. Apart from this they say delivery in 5 min else free which they marijuana cigarette too. That was a good experience. Finally we had our food and as soon we were finished person came and immediately cleaned the table. *Experience Regarding the tangible cues, were quiet evident as person serving at back were wearing gloves and hair cap. Fresh plates were served.All products of papers and plastic were recyclable. Quality of food was good as they were fresh and prepared in front of eyes at the backend. This actually reduce performance gap as they were pretty good in the employee end. Service delivery was also in time there was no standard and specification gap. Listening gap was not there as they actually served the food in the way we asked and they used to recheck the order before placing them apart this was mechanized function so error was less. Even each person (employee) was well versed in Hindi, local language and English. Empathy was good as they were polite even while waiting because there were many counters to serve and no customization so efficiency can be maintained even with the speed. They were quiet responsive to what were ordering and even when we ask to clean table again it was done immediately. Quiet reliable service as they delivered all aspects equally to all of us and in our every visit. Service gap. Yes one of our friends got free coke for not getting food ordered in 5 min this was a performance GAP and free providing increases assurance quality of the Brand.They have good level of responsiveness as they were delivering in time and response to complain was also very quick. 33 Mc Donalds and Subway Rating on Basis of high low and medium Service quality dimensions (high is good Assurance and low is bad) Tangibility Empathy Responsiveness Reliability Service gap (low is good and high is Listening bad) Communication Performance Standard SUBWAY medium medium high high medium low low medium low Mc DONALDS medium high medium high high low low low low 34 Mc Donalds and Subway determine STRATEGY Pricing is the process of determining what a company will obtain in exchange for its products.Pricing factors hold Manufacturing cost Market place Competition Market condition Quality of product. It is a complete aspect of financial modeling and is one of the four Ps of the merchandise mix. The other three aspects are product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest are cost centers. When deciding on pricing objectives the organization or company must consider ? The overall marketing, financial and strategic objectives of the company ? The objectives of the product or brand ? Consumer price elasticity and price points ? The resources available with the organization.A well thought out price for a product or service should fulfill three things ? Achieve the financial goals of the company ? Fit the realities of the marketpl ace ? Support a products positioning and be consistent with the other variables in the marketing mix. Pricing strategies are of various types mainly? Competition based pricing ? Cost-plus pricing ? Price skimming ? Penetration pricing ? Limit pricing ? Premium pricing ? Target pricing 35 Mc Donalds and Subway ? High low pricing ? Value based pricing MC DONALDS Value Pricing McDonalds has a unique pricing strategy that falls exclusively on their many product lines.Their Value Meals fall into the category of value pricing. McDonalds has certain value pricing and bundle up strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes. For example, you can order a Mc Veggie Value meal that comes with a Mc Veggie burger, medium drink and fries for around Rs99 where the customer can save Rs 39 if he/she bought the food items separately. You can tops(predicate) Size this meal to get a large drink and large fries for a lilliputian more money or you can go with other value meal that might include different items for ifferent price. Figure 12 McDonalds Pricing Also in its promotions, M c D o n a l d s c a m e u p w i t h a v e r y c a t c h y p u n c h l i n e A a p k e z a m a n e m e i n , b a a p k e zamane ke daam. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. 36 Mc Donalds and Subway Promotional Pricing To promote its breakfast menu Mc Donalds has come up with a new scheme of giving Rs 20 off on its Great Breakfast meal.This kind of promotional pricing is adopted to target new customers, to increase its base of customers and to give a variety in its offerings to its existing customers to help increase volume. SUBWAY Value Pricing Subway tries to create value products by service in terms of quality, ambience, variety, and convenience. By introducing the concept of sub of the day the company tries to satisfy the needs of its present customers b y creating a sense of curiosity amongst in the sense they would want to know what sandwich is the sub of the day. 37 Mc Donalds and SubwayFigure 13 SubWay Pricing Bundling Strategies Subway offers combo offers of a sandwich, potato chips/cookie and a drink at only Rs. 45 extra for a medium size meal and Rs. 50 for a large size meal. Promotional Pricing To increase its current consumers base and also to attract new customers, Subway has come up with new fight where with any 6 inch sub and a medium beverage the company is offering another 6 inch sub for free. In September 2011, Subway has introduced a buy one get one free offer on Mondays. This is valid on all its sandwich offerings. 38 Mc Donalds and Subway 39Mc Donalds and Subway 40 Mc Donalds and Subway Figure 14 SubWay & Mc Donald s Pricing Strategies 41 Mc Donalds and Subway Critical Analysis MCDONALDS With respect to the services provided by Mc Donalds, the following management issues were observed 1. McDonalds wishes to rewor k on its restaurant interiors and match up to those of its self owned restaurants, However the problem that they have encountered is that franchisee owners are unwilling to invest in interior design. 2. McDonalds has introduced MFY (Made for You) whereby the burgers are made after the order is placed.However, the franchises are required to upgrade their equipment in order to follow this. The franchisees are not willing to incur such expenditure which poses a problem to McDonalds. 3. We normally observe the customary trend of people queuing outside McDonalds especially during the weekends. This is due to the control capacity space in the restaurants. This has been a persistent management problem for Mc Donalds. Even though the management at McDonalds has been trying to search for a solution for the same, it fears doing so