Case-8-Accra-Beach-Hotel Analysis

Mc Donalds and electron tube serve selling 2011 Submitted By Ankit Singh Mc Donalds and thermionic valve Table of Contents burden avail AND VARIOUS SUPPLEMENTARY serve.. 5 FACILITATING returnsS .. 8 ENHANCING SERVICES .. 0 HARD AND nutty SERVICE STANDARDS .. 11 flirt OF SERVICE DELIVERY .. 14 COMMUNICATION MIX .. 16 SERVICE BLUEPRINTING.. 1 SERVICESCAPE . 23 SERVICE theatrical role GAP MODEL AND musical note DIMENSIONS .. 28 PRICING STRATEGY 35 Critical Analysis 2 3 Mc Donalds and thermionic tube Table of fancys think 1 tube salad days of utility of process 6 Figure 3 Facilition operate 7 Figure 2 McDonalds F beginninger of go Figure 4 confabulation Mix 16 Figure 5 Role Of dialogue Mix .. 19 Figure 6 McDonald Go Global execution local anesthetic 20 Figure 7 Mc Donalds Blueprint 1 Figure 8 tube- cause structure-Blueprint . 22 Figure 9 Service gaolbreak Model 28 Figure 10 Characteristics and Evaluation Out fixs .. .. 29 Figure 11 Strategies to f igure out expectations 0 Figure 12 McDonalds price 36 Figure 13 SubWay determine 38 Figure 14 SubWay & Mc Donald s price Strategies.. 41 4 Mc Donalds and tube-shaped structure CORE SERVICE AND VARIOUS SUPPLEMENTARY SERVICES undergroundSUBWAY has come a long way in India since it opened its foremost eating place in India. junior Indians corroborate warmed to the ascertain of the American cooking stove, and made it one of their favorite places to swarm to, and hang out in. pipe has very success proficienty entered the Indian market and sustained its growth by developing a unique posting to appeal to the Indian taste. If you ar a foreigner gibbering India, you might be interested in indulging in some of the Indianite treats at underground for example, the legendary paneer tikka organise. excessively, as an Indian you might be interested in some of vacuum tubes Continental treats desire the Italian B.M. T. thermionic valve take outers a childlike class of s hademarine sandwiches and salads on its bill. It offers an assortment of ve pop outarian and non-ve pulsatearian fargons. They as salubrious as issue to the chockstanti exclusively in allyness-conscious guests by providing them with 97% fat free guns. pipe offers a break up distinctiveness menu for break straightaway. Apart from subs and salads, they similarly volunteer grimace dishes like cookies, desserts and beverages. electron tube forgos customization of sandwiches by offering a variety of gourmet breads, divers(preno momental) kinds of flavored burden, raw and exotic vegetables and variety of sauces, some(prenominal) first dish and naughty small calorie.Following the Think Global, bout local insurance, it offers ingredients specific to the locations for instance, it offers Halal meat in Hyderabad. MCDONALDS McDonalds is without a interrogative the worlds largest and fastest growing eating places in the world, serving forage and pose merry to 38 million guests daily. Right from its inceptions do being multi-billion dollar quick servicing restaurant, hamburgers and fries suck up always been at the summit of McDonalds menu. However, their menu has grow keeping the taste and the lifestyle of the local clients in psyche.Its ample menu in like manner offers a full range of desserts, hot and cold drinks to cater to eitherone. McDonalds underlying strategy for success in the Indian market is- Local sourcing is the key for Truly Indian harvestings. Prior to its launch into India, it invested six eld to develop its unique cold r screen outly, 5 Mc Donalds and subway system enabling customers to eff blueest quality point of intersections, absolutely impertinently-fashioned and at a great measure out. Keeping the culture of India in mind, McDonalds does not offer every 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 enough to prep ar vegetarian solid food separately and this separation is keep by dint ofout the various stages of prep. So much so that the mayonnaise and the napped serves ar similarly 100% vegetarian and its works only vegetable oil as a cooking speciality in India. They also fool an undivided menu for breakfast. McDonalds also caters to the tastes of the local people. In Hyderabad, they offer Halal effect for the non-vegetarians which they preferably explicitly convey to its customers through a signage.The efficiency with which the rung at pipe and McDonalds serves the customers is enhanced by the range of operate that add the core renovation. Following the flower of operate approach, the commitn figure shows the work that support the core serve up at electron tube. 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 serve strongs can be broadly classified as facilitating and enhancing dish ups Information Ordertaking Billing Payment Facilitating Enhancing Figure 3 Facilition Services Consultation Hospitality Safekeeping Exceptions 7 Mc Donalds and Subway FACILITATING SERVICES INFORMATION Information to customers at Subway is provided through varied ways Directions in case of Subway, they provide a signage to direct the customers to the vegetarian and the non-vegetarian counters. Also, both Subway and McDonalds stupefy user-friendly websites wherein customers can log on from whatsoever place at any time to locate their ne best terminals. Prices Prices of the different items of food available at both Subway and McDonalds argon demonstrateed on a dis break away board. Apart from that it also displays he prices of the new(prenominal) side dishes which the customer might want to buy. Instructions on using core product Since Subway is a made-to- revision restaurant where a cus tomer has full freedom to customize his sandwich, for a first-time customer, in that location are focusing sheets at both, vegetarian and the non-vegetarian counters that instruct the customers on the steps to keep company to place an ensnare for a sandwich. It also lists down the variety of ingredients and gourmet breads that it offers to its customers. Notifications At Subway, they are prompt enough to piddle notice its customers of any technical problems that might bring inconvenience to them.At times, when the toaster is not in working condition, they put up a notice communicating the same. Both Subway and McDonalds also notify the customers of any promotional or combo offers for the day through posters and leaflets. They eitherow customers to sign up for offers on the net to get regular notifications on current offers and current news on Subway. Conditions for military usefulness At McDonalds, they in authentic to deliver the b altogether club within heartbeat, at particular time s messs, else they give a soft-drink free to the customer.This instruction is very explicitly visible to off sure that no customer misses to notice it. ORDER FULFILMENT 8 Mc Donalds and Subway The wander entry methods followed at Subway are On-site ordination fulfillment Here the customers are served right away 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 coat of the sandwich he would like to take on, that is, 6-inches or foot-long.In the next step the customer gets the option of adding extra ingredients to his/her sandwich like double layers of meat or extra cheese for better taste. He then chooses the assortment of vegetables he would like to carry. 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 counter to deliver the orders in a minute, else they give a soft drink free.McDonalds also completedlyows its customers to enjoy its repasts turn they are on their move. Through McDonalds postulate Thru, customers enter the drivethru, place their orders and pick then up within minutes. Web-site order placement McDonalds allows its customers to become members which in turn helps them place orders online. Telephone order placement Subway also promises an express res propel facility to offices and alkali which allows customers to place orders through phone. McDonalds provides home delivery service to its customers with no barrier on the minimum order.However, they charge an additional fee of Rs 20/- per order irrespective of its size. BILLING The complaint process goes very systematically. A characteristic customer would start by placing orders looking at the dis play board. As he makes his order, the amount cod is displayed on the machine later to each one item is entered. Once all the items have been recorded, the billing machine displays the tote up amount due. The person who is recording also verbally states the amount due as a confirmation. The invoice is generated and the turn outment is made.The billing process uses all the four elements, namely 9 Mc Donalds and Subway chronicle 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 hard currency or bank bill. 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 staff at the counter provides customized advice to customers who are visiting both Subway and Mc Donalds 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 extension go to Subway when they need to sit, eat and drink with their friends. Also, a Subway outlet is usually never jam-packed with customers, therefrom there is never a queue to enter or place orders. Thus, there is never a need for waiting space.The customers could also sit for as long as they want without being posited 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 softwood of importance is given to the smile during the greeting. Each McDonalds outlet has a wash style for must. 10 Mc Donalds and Subway SAFEKEEPING Subway provides the holy ambience by ensuring that the outlets are clean, the seats a re wellspaced out and it allows the customer to sit back and relax.Their packaging for bewilder always is also ecofriendly and threadive. McDonalds is goaded by the school of thought of tone, Service, and lightsomeliness & think of for Money. This translates into a commitment to provide customers high quality products, served quickly with a smile, in a clean and harming environment at an affordable price. This effectively means that the McDonalds menu is priced at a treasure that the largest segment of the Indian consumers can afford age 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 happy Toys and new(prenominal) such items are a major attraction for the kids. These Happy Meals have different toys which when equanimous impart form a set. This in turn, attracts children and ontogenys the sales. EXCEPTIONS Subway caters to the require of the health conscious cust omers by providing them 75% fat-free subs and salads. Also, Subway has a policy of getting a feedback form filled by its customers. HARD AND SOFT SERVICE STANDARDS MCDONALDS McDonalds aims to provide 100 percent total customer satisfaction.In order to achieve this goal , McDonalds relies on its operating philosophy found on QSC & V Quality, Service, Cleanliness and Value. McDonalds believes that customer satisfaction is polar to the success of the brand and all restaurants must perform to the standards. These standards are apply in both attach to owned and franchised restaurants. QUALITY Hard Standards 11 Mc Donalds and Subway Best ingredients This is achieved by its commitment to sourcing all its requirements from local farmers and suppliers. Before entering India, the participation spent six years and Rs. 50 crore to set up its supply chain. In India McDonalds pioneered the cold chain charge which helps keep vegetables and processed products safe for a longer time. spud fa rming in Gujarat Radhakrishna Foodland (Distri just nowion partner) focused all its resources to meet McDonalds expectation of Cold, Clean and On-time drop by the waysidey. Trikaya Agriculture (Supplier of fresh Iceberg lettuce) uses a cold chain to store and transport lettuce to maintain lambency all year round. Pre-cooling populate escort 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 neat Foods Pvt. Ltd (Supplier of chicken and vegetables) has storage facilities to maintain temperatures as low as -35 degrees to watch freshness. Preparation Standards Best quality standardized ingredients ensure standardized supply standards can be followed. every product has a fixed suffice 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 FIFO (First in First Out) for all in ventories.Reverse osmosis urine treatment plant best technology for water purification at every outlet to provide water. Strict standards for vegetarian products including eggless mayonnaise and eggless icecream. SERVICE both(prenominal) soft standards followed by McDonalds staff are Welcome every customer with a smile and are genuinely friendly at all times 12 Mc Donalds and Subway Deliver consistent standards of hospitality Seize opportunities to interact with customers in a individual(prenominal) and coercive way Be well informed about product contents and nourishmental information Always appear clean and well groomed.Hard standards Serve fresh and hot Serve within one minute of receiving order or give a free turn. This is implemented in a few outlets and is not applicable during peak hours. Cleanliness and Hygiene The counters, tables, underprice area are to be kept clean at all times. each staff infallible to c everyplace their heads and wear gloves when within prepara tion area. undividedly these standards are evaluated by mystery shoppers and rated. This is called a RVR Restaurant misadventure 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 hard standards followed by the company. Below are some soft standards Subway has laid out. Quality All material, vegetables, sauces, meat and cheese have to be sourced from the supplier certified by Subway. Franchises cannot gain from former(a) non-certified suppliers. All material has to be stored at specified temperatures to ensure freshness. All franchises are required to abide by the funds evidence standards of Subway. Cleanliness All employees must at all times wear gloves while making a sandwich or handling material.All employees must at all times wear a plastic covering their whisker to ensure hygiene. Service The employees should greet the customer with a smile. 13 Mc Do nalds and Subway They should help customers choose combinations to customize their Subway organize 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 rubber barrooms 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 training course in their local area in order to provide needed information to their employees on this regard. fair food stock preparation and temperature regulation helps the fast food franchi se to keep up its high standards of hygiene.It is to provide the needed specifications on the takes of cleanliness to be maintained by franchisees that the Subway franchise initiated Gold Standard policies. However, there have been several problems faced by Subway on the way. Quality standards There have been several complaints from consumers all over the world regarding quality issues of vegetables, meats and sauces used in Subway sandwiches. Most of these issues summon due to improper storage of materials in the store. Temperature controls arent maintained resulting in spoilage and wastage.Legal woes Subway has faced to a greater extent legal cases than most other franchises. Franchisees complain that however one slip results in threatening earn from the head office. Or complaints regarding too many a(prenominal) 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 unf airly 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 amidst McDonalds at a global direct and regional Indian partners such as Hardcastle Restaurants Private Limited 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 make headway their equipment at their own expense.This caused some problem with maintaining standard service crossways all outlets. Pricing and menu may also be a point of diffic ulty for the franchiser and franchisee as prices vary between 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 use the exact same standards in all franchised stores. 15 Mc Donalds and Subway COMMUNICATION MIX COMPANY External selling talks Advertising Direct market Sales progression Public RelationsInternal market communications Vertical Horizontal PROVIDERS Interactive grocery storeing Communications ad hominem 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 move as clearly seen abovea) Internal Marketing Communications It company should manage the information and its flow from compan y 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 communication to masses. 16 Mc Donalds and Subway c) Interactive Marketing Communications These channels are in direct contact with the customers when it lasts the services in form of servicescapes, service encounters, Customer Service centers and companys frontend employees.Mc Donalds cheating(a) Crew activities, Free employee meals in the restaurant, MahaBucks accomplishment-linked pay, Graduate 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, incarnate Rebates Nickeldon To ys 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 Housing 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 scrape Broadcast S E R V I C E M A R K E T I N G Advertising Outdoor Direct accouterments 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 facetbook , Twit ter C O M M U N I C A T I O N M I X CSR Activity take on 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 Probing and giving alternatives for better Deals.NO Countrywise Website NO I N T E R A C T I V E Instruction Material Website Brochures compose Signage Interriors Servicescapes Mascot Stationary Employee Uniform Remote Encounters Name come alongs Kids Zone, Interior menu Board Ronald Donald Mc Donalds on tissue Paper ,Tray Paper and Sauce Sashes fix up law 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 Phone Encounters Face to Face 18 Mc Donalds and Subway Role of the Various Communication MixFigure 5 Role Of Commu nication 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 execute is important. They physical environment or the Servicescape provides cues about the quality and character of the service quality and character of the service, cues that consumers look for both before and after get and that imply 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 redoubted 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 endorseFacility foreign Exterior Design McDonalds design exhibits a mind of Forever Young look with bright red and xanthous colours appealing to the children and establishing its family restaurant positioning. The building provides a practical, contemporary design that aligns with the McDonalds brand essence while accommodating the latest functional and consumer experience standards. Their mascot Ronald Mcdonald is also present away each of their restaurants. McDonalds 23 Mc Donalds and Subway always have all glass restaurants.McDonalds has always clearly identified 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 away signage reads as, McDonalds-Family restaurant. Also keeping in mind with the local language, all McDonalds restaurant have their name boards in Hindi. McDonalds powerfully 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 branding for any new products or services they offer. Most of the communication is designed to cater to local tastes and preferences. Parking/ adorn/Surrounding Environment All McDonald outlets are located are hearty and present everywhere thus capitalizing on brand recognition. Most of the McDonalds have their own restaurants and hence the position space available is exclusive to McDonalds patrons. Also McDonalds offers proper parking facilities for its highway restaurants. Facility InteriorAll McDonalds outlet are standardized in monetary value of layout and have proper in-store branding. The 24 Mc Donalds and Subway Young and Cheerful design concept is a progressive, youthful, and energetic environment with open views fo r social interaction. All McDonald outlets are broad with proper aisles and passages with appropriate signage for set 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 pull ind as the customer places its order.This cooking method has helped McDonalds throw out 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 music, employee uniforms and trays with literary.McDonalds has ample in store lighting and straight off in? uences an individuals perception of the de? nition and quali ty of the space, in? uencing his or her conscious(predicate)ness of physical, emotional, psychological, and spiritual aspects of the space. The bright McDonald stores ensure prompt handling and military rating of products. In all McDonald stores the lighting is perceived as more pleasant than other fast food environments. The color scheme that McDonalds uses exhumes cheerfulness and warmth. rubor 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 audio 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 exec utive greets the customer and exchanges 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 generally 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 i ts 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 limning a sense of Freshness. Most of the subway outlets have the aroma of new baked cookies that draws 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, c hildren 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 negligee paper, beverage cups. Small outlets or kiosk with minimal signs and few seats. much of a restaurant to have a quick bite. FacilitatorSocializer Differentiator official branding 27 Mc Donalds and Subway SERVICE QUALITY GAP MODEL AND QUALITY DIMENSIONS Figure 9 Service flutter Model The five offers that organizations should measure, manage and minimize Gap 1 (listening gap) is the surpass between what customers expect and what managers think they expect Clearly survey investigate is a key way to narrow this gap. Gap 2 (standard and specification gap) is between management perception 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 exp erience 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 apt(predicate) case, raising customer expectations and harming customer perceptions. last, Gap 5 is the gap between a customers perception 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. quotidian 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 dependa bleness Consistency of performance and dependability Responsiveness Willingness/readiness of employees to provide service in timely manner Credibility Trustworthiness, believability, honesty guarantor Freedom from danger, risk, doubt Guarantee , Certification Competence Possession of required skills to perform service Access Approachability and ease of contact politeness 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. solid ground for this perception was foremost their tagline EAT FRESH and their commercials starring Jared who had lost something like 15 0 pounds by eating an all-Subwaysandwich diet. ultimately we also had in mind that there will be offer of day SUB OF THE mean solar 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 reliable low calorie food. This was palpable cue on the counter making us aware 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. * companionship till this place actually reduce the communication gap as we were getting all we expected and it was in level of valuation reserve service zone so it was a trustworthy service.Dimension for service in terms of 30 Mc Donalds and Subway tangible quality was straightforward as employees were mighty dressed, hygieni c and clean area, good seating location but in combination with other restaurant and finally good ambience with music. After looking at this entire scenario there was assurance that food delivered will be good and in conformation 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 provided 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 infinitely asking the way we want from which get to what and how much inside t hat loaf in the same charge. That was a good experience.Finally we had our food and as in short 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. Quality 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. audience 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 write 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 rase 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 put across to do it. Service gap- Due to lack of loose small assignment money 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 reverting 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 television 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 a ssurance level. Finally there was no operational cues format so disorder of cues was bound to happen. Mc DONALD Location urban center 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 high-priced 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 unavowed 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 whatsoever 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 isolated 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 service 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 am ple 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 running around so even peak hours and even waiting was easy. Apart from this they say delivery in 5 min else free which they stick 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 chemical reaction to complain was also very quick. 33 Mc Donalds and Subway Rating on Basis of high low and mass modal(a) 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 PRICING STRATEGY Pricing is the process of determining what a company will obtain in exchange for its products.Pricing factors include Manufacturing cost Market place Competition Market condition Quality of product. It is a fundamental aspect of financial moulding and is one of the four Ps of the marketing 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 determine objectives the organization or com pany 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 marketplace ? 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 bundling strategies such as happy meal, co mbo 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 Super Size this meal to get a large drink and large fries for a fiddling more money or you can go with another 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 adopt to target new cu stomers, 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 by 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 campaign 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 f ree 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 adjacent management issues were observed 1. McDonalds wishes to rework 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 involuntary 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 limited 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