Service Marketing in Bangladesh

Introduction:

Marketing efforts once focused primarily on the selling of manufactured products such as cars and aspirin.
But today the service industries have grown more important to the economy than the manufacturing sector.
Services, unlike products, are intangible and involve a deed, a performance, or an effort that cannot be
physically possessed. Currently, more people are employed in the provision of services than in the
manufacture of products, and this area shows every indication of expanding even further.

Services, like products, require marketing. Usually, service marketing parallels product marketing with the
exception of physical handling. Services must be planned and developed carefully to meet consumer
demand. For example, in the field of temporary personnel, a service that continues to increase in monetary
value, studies are made to determine the types of employee skills needed in various geographical locations
and fields of business. Because services are more difficult to sell than physical products, promotional
campaigns for services must be even more aggressive than those for physical commodities.

Objective of the Assignment:

The objective of this assignment is to comparative analysis on Service Marketing Mix analysis on two
different types of restaurant setup Sublime and KFC Dhaka outlet , service marketing, ways and process of
service marketing and problems faced by firms concerning the services marketing and the marketing
strategies they use to overcome them.

Literature on Services Marketing: Perspective Bangladesh

Service: Service means any activity or benefit that one party can offer to another that is essentially
intangible and does not result in the ownership of anything. Example: Banking, Hotel, Retail, Airline, Tax
preparation, Home repair services etc.

Service marketing: Services marketing is marketing based on relationship and value. It may be used to
market a service or a product. Service marketing means offering services through different process,
organization and ways. in other words, service marketing is a way of satisfying demand by invisible
actions, that are provided by one party to another party with getting profit or not getting profit that‟s are
called service marketing.
 Service Industry: Service Industry, sector of an economy made up of people or businesses providing
personal and professional services to others, such as food serving and preparation.

Just like manufacturing businesses, the firms who are running their business activities by providing or
offering service use marketing to position themselves strongly in chosen target markets. Since services differ
from tangible products, they require additional marketing approaches. In a product business products are
fairly standardized and can sit on shelves waiting for customers. But in a service business the customer and
front-line service employee interact to create the service. Thus service providers must interact effectively
with customers to create superior value during service encounters.

International Service Marketing:

International service marketers face special challenges. First, they must figure out what services to introduce
and in which countries. Then, they must decide how much to standardize or adapt their services for world
markets.

Three Major Service Marketing Tasks on Bangladesh:

1. Managing Service Differentiation: In these days of intense price competition for survival
service marketers often have to develop a differentiated offer, delivery and image. The offer can include
innovative features that set one companies offer apart from competitors‟ offers. They can also differentiate
their images through symbols and Branding.

2. Managing service Quality: One of the major ways a service firm can differentiate itself is by
delivering consistently higher quality than its competitors do. Top service companies are customer
obsessed and set high service quality standards. They do not settle for merely good service, they aim for
100% defeat free service.

3. Managing Service Productivity: With their costs rising rapidly, service firms are under great
pressure to increase service productivity. They can do so I several ways. The service providers can train
current employees better or hire new ones who will work harder or more skillfully. Or they can increase the
quantity of their service by giving up some quality. Finally the service provider can harness the power of
technology.
Importance of Service Marketing In Bangladesh:
Improving Standard of Living: More than three forth of the nonfarm labor force is employed in service
industries.

Employment: For service providing organization a large number of people are need; which create
employment opportunity.

Paying Reasonable Wages: Service providers get more wages than the other workers.
According to Stanton and Walker, “Services employment is not low paying job”.

Reducing Dependence on Technology: Developing and under developed countries are always tried to
reduce the dependence on technology because they are not financially solvent.
Optimum Utilization of Unused Resources: Every country has some hidden treasure (services). By
using these hidden treasures, Bangladesh can be developed.
Increasing Investment: To increase investment service marketing can play a vital role in every sector at
service.

Marketing mix for the service in Bangladesh:

Marketing Mix is the set of controllable tactical marketing tools the firm blends to produce the response it
wants in the target market. The marketing mix consists of everything the firm can do to influence the
demand for its product. The many possibilities can be collected into four groups of variables known as the
“fourPs”:product,price,place,promotion.

Figure shows the particular marketing tools under each p

Product Price

Variety List price

Quality Discount
Design Allowance
Features Payment period
Brand Name Target Credit terms
Packaging Customers
Services
Intended
Positioning
Place
Channels
Coverage
Promotion
Assortments Locations
Advertising Inventory
Sales proportion Transportation
Public relation
Personal selling
Comparable Analysis on Service Marketing Mix Elements Between
Sublime Restaurent a Fine European Restaurant of Dhaka and
Kantuchy Fried Chicken ( KFC) Dhaka Outlet

Marketing mix is used to describe the combination of different marketing activities that a
business does to best meet the needs of the market it is targeting (Jobber and Fahy, 2009). At
first, the marketing mix was compounded of 4P’s; starting with the product, price, place and
promotion. Thereafter other elements were added to these tools and these elements were; people,
process and physical evidence. Considering the added elements, the marketing mix of 7P’s forms
a tool that businesses use to satisfy the needs of costumers in the market it targets. Accordingly,
the purpose of this assignment is to analyse and compare the service marketing mix strategies of
Sublime a fine European restaurant in Dhaka and KFC Bangladesh, uses the marketing mix.
Identifying where these two restaurants succeeds in using the 7Ps and where it fails and
proposing what improvements can be made.

Analysis on Marketing Mix Elements of Sublime a Fine European

Restaurent of Dhaka

The main product of Sublime is the food and drinks menu. The products must provide good
value for money for customers and be of a high quality to entice the customers to want to spend
and to make a return visit. This restaurant’s food and drinks menu are of a very high standard.
The website notes that the managing team of the restaurant often analysis to taste new foods and
drinks to offer to their customers.

The Price
It is important that the price should be competitive however the food offered should also
represent the amount of money that the customer is spending on it. The prices are reasonable
when one looks at other Fine style restaurants in Bangladesh. This seems reasonable when
compared with other fine restaurants in Bangladesh.
The Place
Place is concerned with the location so that the customer can buy the product with ease, and its
accessibility to the store is another important aspect. In the case of the restaurant it ideally should
be in a central place. This means that it is in an area of high exposure for potential customers, be
they on foot or in a car. In regard to Sublime, they are located centrally, providing a wider reach
to customers . A negative aspect of Sublime is that it does not offer a car parking facility at any
of its chains; therefore if someone wishes to park their car they will have to pay high central city
prices. One potential improvement for future restaurants within this group would be to have a car
parking facility to entice customers from the outskirts of cities to visit them.

The Promotion
Promotion involves different items and the ways in which businesses communicate their
products to the customer showing the benefits of buying their products. Sublime has very
popular promotions they do daily, they promote different offerings based on their services.
Sublime also promotes its brand via Facebook, Website with attractive offerings.Customers can
purchase for their family and friends to go and try the restaurant’s food and drink.

The People
‘People’ includes everyone who is connected to the product. This involves employees,
customers, management and the business owners; therefore everyone has an important role in
making the business succeed. The restaurant need to have qualified chefs and staff who can
present the product to the customers and are experts in European cuisine. Sublime details on their
website and Facebook page the type of person they wish to work them, noting that they wish to
employ people who are friendly, enthusiastic, hard working and care about giving excellent
customer service in a busy restaurant environment. Sublime’s website has several promotions the
superior quality of their food. Furthermore, Sublime uses the media and journalists to promote
their offers and competitions.

The Process
Process focuses on the activities done to the product before it is provided to the customer and the
method or the process used to provide the service. The main element in process is time, if the
process takes long, the sale of the product will be affected. Interestingly, the Sublime team visits
some suppliers in order to ensure the health of the livestock purchased. This evidently expresses
the concern that the management have towards providing the customers with their monies worth.
Accordingly, the quicker the process is, the more appreciated the product.

The Physical Evidence

Physical evidence can be defined as the experience in the use of either service or product. For
example, brochures or pamphlets that describe the product to the customer to enable him to know
what he is buying and its qualities. Also, the restaurant is furnished in a very warm way in which
the high and middle class individuals will be comfortable dining and wining. Moreover, the
arrangement of the hall can be adjusted to suit family seating. This means customers of different
categories can find convenience in Sublime. In the case of the different restaurant servings, it is
described in its various menu cards for starters, main courses, desserts, and drinks.

Analysis on Marketing Mix Elements of Kentucky Freied Chicken

(KFC) Dhaka

KFC’s specialty is fried chicken served in various forms. KFC’s primary product is pressure-
fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is
made using a garlic marinade and double dipping the chicken in flour before deep frying in a
standard in a standard industrial kitchen type machine. For instance, in Bangladesh KFC come
out with hot and spicy fried chicken to match with the Bangladeshi favour. Apart from this,
Bangladeshi people are more emphasize on family, so KFC launch barrel of chicken which
inside one barrel has 21 pieces chicken. Besides that, Bangladeshi like having their breakfast
with grains. KFC introduce porridge as breakfast in the menu.

Price
The amount of money that customers have to pay while purchasing the product. Price also can
define as the sum of the values that customers exchange for benefit that they get after using or
having product. There are no age limit focuses by KFC. Generally, KFC enters the market using
market skimming. KFC products are priced high and target middle to upper class people.
However, step-by-step KFC trickle down the prices to attract middle to lower class people to
penetrate both side of the market. KFC adopt the cost base price strategy. Before determine the
price of product, KFC include the government tax and exercise duty and all the expenses that is
fix and variable costs to fix the price.

KFC also will compare the price with competitor before decide the price. For example, if
competitor provides same product at lower price, no doubt KFC also will lower the price of same
products too.

Place
It is the mechanism through which goods or services are moved from the manufacturer or service
provider to the user or consumer. KFC establish outlet at the place that are accessibility for
consumers. For example, there are 17 outlets KFC at Dhaka. KFC prefer placing itself close to
schools, colleges, cinemas and markets which are mostly populated by the young and those who
are in a hurry. In addition, KFC enjoys a large number of footfalls every weekend. In channel
process, KFC works on the flow of good operation techniques which is good operating manager
leads to good team selection and good services achieve good targets will create good revenues.
Which the target can achieve through the following internal strategies: training, incentive based
targets, recognition for good work, performance based bonus, employee benefits to keep them
motivated.

Promotion
Another one of the 4P’s is promotion. This includes all of the tools available to the marketer for
‘marketing communication’. As with Neil H.Borden’s marketing mix, marketing
communications has its own ‘promotions mix.’ Promotion is the method used to inform and
educate the chosen target audience about the organization and its products. KFC using reminder
advertisements which stimulates repeat purchases of its product. KFC use sponsorship as a tool
of promotion tool due to sponsor can increase image of company. Sales promotion is one of the
tactics to promote product KFC. KFC use coupons, entertainment, exhibits to increase it sales.
One of the largest chicken restaurants chain in the world is KFC. KFC has a very long history
and has the most recognizable brand in chicken. KFC is a very popular chain of fast food outlets
that start from Louisville, Kentucky. An annual sale more than a billion dollars make KFC
known as a leader in the chicken restaurant segment. It is difficult for new companies who want
to enter the market because KFC hold 50% of market share.

Although there are many competitors try to enter fast food industry, however KFC was able to
retain its customer because of its unique offering. For this reason, KFC become the highest
ranking when it comes to chicken restaurant chain, restaurants and a variety of convenience food
suppliers. Over the years, KFC achieved great recognized as a reputable brand fast food and
global positioning and equipped with excellent industry.

Findings and Conclusion

1.Current Market Situation Analysis

KFC is highly popular international fast food chain restaurant in Bangladesh. KFC stands for
high quality fast food in a popular array of complete meals to enrich the consumer’s everyday
life. KFC strives to serve great tasting, “finger licking good” chicken meals that enable the whole
family to share a fun. Uninhibited and thoroughly satisfying eating experience, with same
convenience and affordability of ordinary Quick Service Restaurants.

2.Competitive Analysis

Unlike what one would expect, KFC has many competitor with similar fast-food chains in
Bangladesh. The primary reason is that their core products. For example, if KFC raised its price
for chicken by a small amount, Bangladesh chicken lovers may go in BFC, FFC, A&W and so
on. If KFC rise their price of their regular item people of Bangladesh cannot go there. For
example, a full meal at KFC ranges about TK 200, whereas a full meal at other fast food
restaurants can cost over TK. 150. The drastic difference in price assures no price competition
between these restaurants Many fast food restaurants exist in Bangladesh’s, which are
continuously satisfying the countrywide demand. Sublime has its competititors with the fine
restaurant chain. The price range are not accessible to all class of people. In general, Sublime
used all the 7P’s of the marketing mix to meet the needs of the customers, though it slightly
failed to use them fully. Improving the quality of the service, adding children’s menu and
creating home delivery meals, would help to increase the popularity of the restaurant; though it
has already set a good reputation in gastronomy as the restaurant declares it in the website.

3.Market Positioning

Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers. For KFC management the image their
customers carry in their mind is the most important factor. That is why for them the product
quality, which is almost, standardizes the entire world except little differences because of local
requirements & the promotions are very critical factor. The people which are their customer and
the physical evidence, the environment customers get in the KFC are the focus that built KFC’s
image in the customer mind that is why they are always trying to bring positive changes in the
environment so that every time their customer enter the KFC, can feel the difference. They think
that trough continuous efforts they have developed such a brand image in their customer’s minds
that their customers have become brand loyal. I order words they have got brand equity. In
general, Sublime has not remarkable distinctive and desirable place relative to competing their
competitors. The service offering is based on the management research not on focusing customer
needs and convenience. In meeting the needs of the customers, Sublime failed to reach them.
Improving the quality of the service, adding menu and creating home delivery meals, would
help to increase the popularity of the restaurant