Wonderbar Ad - Agency PHSM 2016-2017 Y.Tyuleneva 511153 PDF

Principles of Hospitality and Service Management
Lecturers: Professor Conrad Lashley and Drs. Klaes Eringa
A case analysis of Digital Agency

Wonderbar in Almaty, Kazakhstan
MA/MSc in International Hospitality and Service Management

Stenden University of Applied Science 2016-2017
Module 1: Principle of Hospitality and Service Management
Student name: Yevgeniya Tyuleneva
Student number: 511153
Hand date: 11.11.2016

Yevgeniya Tyuleneva (511153) - The case analysis of Digital Agency Wonderbar Almaty, Kazakhstan
Table of the content
INTRODUCTION ............................................................................................................................................... 2
THE SERVICE CONCEPT OF THE COMPANY............................................................................................... 3
THE EVIDENCE OF SERVICE ......................................................................................................................... 4
HOSPITALITY ................................................................................................................................................... 5
EMPOWERMENT ............................................................................................................................................. 6
SERVICE RECOVERY ..................................................................................................................................... 7
CONCLUSION................................................................................................................................................... 8
RECOMMENDATIONS ..................................................................................................................................... 8
SERVICE BLUEPRINT ..................................................................................................................................... 9
PICTURES ...................................................................................................................................................... 11
REFERENCES ................................................................................................................................................ 13

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Principles of Hospitality and Service Management - Professor Conrad Lashley and Drs. Klaes Eringa
Introduction
Digital advertising company Wonderbar was founded in 2011 as a small company in Almaty, Kazakhstan.
Initially, the company was called "Alt Media Services", but a year later it was renamed. The main direction of
the company is to promote the product on the market with the help of advertising tools on the Internet. Due
to the fact that the market in Kazakhstan is very unstable and clients are not familiar with all types of
advertising on the Internet, the company primarily focuses on customer education, to follow-up with the client
in a comfortable way. Despite the fact that the market in Kazakhstan is rather small, it is attended by a lot of
competing companies, which serve the local companies and large International Companies, such as Coca-
Cola, Mars and etc. What is distinguish this agency from others? There are several things which company
implement: huge amount of advertising tools, personalized the approach, special relationships within the
company and the employees development.
At the moment, advertising on the Internet is one of the most affordable and effective methods of advertising
promotion. Progress does not stand on a one place, and every day in marketing specialists are watching
more and more new tools for online advertising. That is why, Wonderbar agency is searching for the new
trends tries to use as much as possible for new directions to satisfy clients. Currently, the main instruments
are: Google Adwords, advertising in social networks, display networks.
In addition, the agency has a large amount of knowledge in analytics and intelligence in choosing the right
solution to the problem to approach each client and task individually. Some companies do not have the
knowledge about the possibilities and have a desire to reach a huge number of sales. In this case, the
agency can offer the client to change the overall clients strategy in order to have a clear plan to achieve the
goal. In many cases, the agency is ready to go beyond the existing services to meet customer and build
stronger relationships.
Despite the fact that the agency spends a lot of time and effort on the potential and existing customers, it
does not forget about the relationship of employees within the company. Currently, there are 30 people work
in this place. All of them between the ages of 23-40 with a completely different background. Nevertheless,
thanks to team building, which are held once a month, employees in the agency are very friendly and care
about each other. Also, the agency tries to trust and to share responsibilities among the staff. In order that
the owner of the agency received the maximum and little costly out of business, it has been applied role of
empowerment. The company has a number of account managers, who are responsible for their client group.
The rest of the staff are tools in achieving goal on that particular clients.
In order to make mechanism of work in correct way, the agency is ready to allocate funds and to spend time
on additional education of employees. It could be a flight to the conference, passing additional courses or a
certificate. Also, agency staff constantly share knowledge and advices on self-development.
In general, Wonderbar Agency is small, but well-working mechanism, ready to introduce new tools to work
and develop the capabilities of its employees. Despite the complexity of work on the market of Kazakhstan,
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currently the key clients of the agency is: Nestle, Wrigley, large construction companies, banks, and many
others.
The service concept of the company
For the beginning of analyses, it is important to start identifying products which the organization is purchase.
It will help to see a clear picture of all working processes and opportunities customers receive. Digital agency
Wonderbar purchases products which give organizations opportunity to get more customers.
Core product is what basically customers want to get and it describes what they are actually buying
(Melissen, Van der Rest, Josephi, & Blomme, 2014). When customers come to agency they ask them the
following questions: how can I get more customers or how I can sell that product better, but still all of
them dream to have high income. This organization offers customers opportunity to get more customers by
using tools of digital advertising:
advertising in all suitable online platforms: Facebook, Instagram, Vk.com and etcetera;
search engine marketing: advertising in Google, which is called Google Search, Google Display
network;
eCommerce: specifically, in this company it is used to send electronic mails to inform customers of
special offers;
SMM: it is a form of internet marketing that uses social networks as a marketing tool. The goal of this
tool is to increase brand awareness and broaden customer reach;
Display network: advertising in all most popular web-sites in Kazakhstan.
These instruments are also elements of intangibility, which could not be touched by customers. Moreover, it
will be hard to evaluate these products before purchasing, because all types of the stories and needs are
different, nobody knows what the result they will be in the end (Altan & Eringa, 2007). When customers come
to the agency, they also understand period of time that they need to see the result. Sometimes customers
can get new clients immediately, but some of the projects need more time after they finished advertising
campaign. It is also effect of intangibility (Altan & Eringa, 2007).
In time when core product is the main consumers need, supplementary product is second wants of
customers (Altan & Eringa, 2007). However, supplementary products are also an opportunity to agency to
get more profit. Agency experienced a lot of situations, when customer came to them only with a wish to get
advertising. Due to the fact that the company operates mainly in the Internet, it is very important when a
client has: a website, a unique advertising offer, advertising banner. In cases when all the previously listed
missing, the agency is ready to take all the necessary production by themselves. Also, agency experienced
situations, when customer, with whom worked for a long period of time, asked to make event or produced
certificates. The company couldnt refuse to clients, because it is also the way to show loyalty and respect.
However, products which agency can provide it is not the only things which they have. Today there are a lot
of competitors who want to get better clients and have good portfolios. Digital agency Wonderbar choose
strategy to provide also good service to their clients, which means that with the advertising they get
respectful relationships, worries and a lot of recommendations which are not paid. Account managers, who
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are the only one who interact with customers, must be able to be as a mother to them. It is a long process
with misunderstandings and finally consent, when despite the fact that client can be annoying, the manager
has to be patient and make the client's life in an unfamiliar environment - comfortable, without prejudice to
his rights. What exactly means that patient and responsibility are the main service concept of the company.
The Evidence of service
When the evidence of the service connects with intangibility, customers are trying to find any connections
with the organization. It consists of three main elements: people, process and physical evidence (Wilson,
Zeithami, Bitner, & Gremler, 2012). People is more focused on how the contact is going between employees
and the clients: is employees are enough helpful and knowledgeable. Process focuses on how it goes, time
and how much time customers wait in line. The last one is physical evidence, which focuses on
surroundings. For instance: was that furniture comfortable, enough space, clean area and etc.
People in digital agency play very huge role. They should be able to support, to be kind and able to have all
necessary knowledge to answer on all customers questions. First of all, when customers come into contact
with the agency, they are looking at the people who surround them. In most cases it passes through the
presentation. Once the agency gets an assignment from the client, the whole team starts to work on a
project and then presents all the work which is done in the presentation. When agency wants to show how
much valuable client for them, they take over the meeting the head of the department, an analyst and
account manager who will manage the project. So there is the first customer contact with the evidence of
service.
The process goes differently and depends on the client's requirements. Basically, the account manager
receives a request, which takes time to look through, sets deadlines and puts the tasks that the team must
perform. The process of preparing and processing a request from the client can range from 2 hours to 2
days. After, the team sits together and discusses the strategy compares the competitors and make market
analysis. After gathering all the information, the agency prepares the information and account manager
sends the presentation to the client for consideration. After client's agreement, the organization signs a
contract and starts an advertising campaign (see figure 1).
The physical evidence also plays a huge part in process of purchasing product, especially in Kazakhstan.
People in Kazakhstan prefer to see beautiful decorations, nice dressed and smiling people. In their view, this
means that the company has money, which means they are successful. The agency is located in the
business center which is in the historic center of the most densely populated city of Almaty, on the eighth
floor with a magnificent view of the city and the mountains (see picture 1). For this reason, the agency is
trying to schedule meetings in the office, to show how well they work, and that they have an opportunity to
rent an office in a place like this. There are several rooms in the office:
Reception desk, where the office manager meets customers (see picture 2);
Conference room, where all the meetings with clients and discuss projects with employees take
place (see picture 3);
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Working area: is an open space area, where all sit in the same room. This was done primarily to
ensure that every employee can quickly get an answer to a question, and also to make staff more
closer to each other to become a very close friends (see picture 4, 5);
Kitchen is also one of the most important area both for employees, who want to take a rest and for
clients which want to talk in more relax place. Sometimes several clients want to meet with the
agency in one time, and not to interfere with each other, the meeting may be held in the kitchen.
Experience has shown that most of meetings there were more successful, as they were in a very
informal and homely atmosphere (see picture 6).
In addition, to create a complete picture of service performance, all participants should be well dressed, not
necessarily in a classic suit, but clean and nice casual style. This shows how seriously the agency refers to
the client. Also, one of the rules is to "smile". The employee is obliged to present everything in a positive
manner. "Smile" is also a part of form, which is dresses with a clean coat or jacket. If staff are smiling, the
customer will be more relaxed, and the negotiation process go more smoothly.
Thus, it is possible to get a whole picture of the production process of intangible product. All the action takes
place behind the scenes. Customers do not see the whole preparation. The process begins with a phone call
or a letter that gets your account manager. Then, all process goes as in the theatre. The agency's team is
doing to work together on the preparation of ready-made solution for the customer, preparing, practising
speech and finally make an appointment. When customers come, they see a beautiful and smiling staff who
are ready to show the presentation. There is only one difference between the theatre and this - the
customers will pay only if they like this performance.
Hospitality
The word hospitality take its beginning from the Latin word hospes means hosts, guest or stranger
(Kidd, 2002). The term "hospitality" went many times ago beyond the usual understanding of this term. It
does not only belong hospitality industry. In many organizations, the hospitality became one of the
elements of building relations between the company and the customer produces, in a term hospitality as a
commercial friendship (Lashley & Morrison, Hospitality as a "Commercial Friendship", 2003). It shows
social relationships with customer not with connection to organization, but more with service provider.
However, good relationships with the service provider, in this case with the account manager allows
customers to build a special opinion about the company. The opinion, which will allow the client to feel
comfortable and trust the agency.
Due to the fact that these relations are largely constructed to receive more profit, they also may be referred
as commercial hospitality (Lashley, 2000). In this case, the agency is ready to go beyond the limits of the
service and give customers more than they initially expected. Most often it is the services that may be made
by employees, such as: to conduct market analysis, to find vulnerabilities in the client's product or make a
comparative analysis with competitors. These bonuses are not costly in monetary terms, but may bring more
loyalty and to show how much the agency appreciates and loves the customer.
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For the beginning it is important to determine account manager, in order not to confuse customers with
whom they can communicate or ask questions, who explains, educates and tells the client about all the
nuances of the work and it is also an element of "hospitality". Since the sphere of digital advertising
appeared recently in Kazakhstan, many people still do not believe, and sometimes doubt its capabilities.
Nevertheless, it is the cheapest advertising tools in the country. For this reason, almost all customers
sometimes do not understand the process. Agency regularly takes a lot of calls and letters from customers
which have a negative character. Meanwhile, account manager should continue to stay calm and be patient
as much as possible. In some cases, the manager must be prepared for an emergency meeting with the
client to explain and show all in live.
Empowerment
The role of empowerment has a huge part in organization. Also, as in the case study about McDonalds,
agency choose empowerment through commitment (Lashley, 1995). So what is empowerment? For some
views it is to give huge amount of responsibilities for people who work very close to failures or problems
(Barbee & Bott, 1991). For another, it is a process of sharing with others decision-making opportunities
(Bowen & Lawler, 1992). Also, empowerment means to give employees wish, opportunities, tools and power
to satisfy customer. It almost provides employees opportunity to make decisions, but with a lot of trainings,
managers support, guidelines and other instrument that will help them to make decisions (Wilson et al,
2012).
Due to the fact that the account managers in the organization play a huge role, the owners of the company
try strongly encourage them, especially when it is possible to renew the contract with the client for the
following year. Also, in many cases, the manager does not require approval from owners of agency. All
decisions they can make themselves. On the one hand it is a very heavy burden of responsibility, and on the
other hand it allows the managers to express themselves. It was introduced special program to motivate staff
management by awarding bonuses. All members have their own individual requirements:
Account manager: if the managers were able to extend the contract, offered something new, and the
client has agreed, or found a new client for the company - that the employee could get a bonus for
their work;
Other employees: organization has a separate system of individual bonuses. Every six months, the
owners of the company discussed with each employee that s/he wants to achieve in six months and
that s/he wants new to bring in the organization. It could be some new skills or employee wants to
gain greater expertise in this area. The company is willing to pay for courses and encourage the
bonuses in the case of successful completion of the course.
Despite the fact that the account managers are largely responsible themselves for projects, there is always
next to the one who is willing to help. In most cases it is the same management, but with a lot of experience.
If there is a need for the adoption of serious decisions, the manager can always discuss all issues with
owners.
As it was mentioned earlier, empowerment plays an important role in building relationships in the
organization. The owners of the agency tried to give as much freedom of employees to their work was
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interesting and they can continue to develop the process. According to Lovelocks (Lovelock & Wright, 2002)
Service Profit Chain, it is simple to understand that if company care about employees, consequently
employees will more care about customers and in the end, there will more customers who would like to
return again (Altan & Eringa, 2007). What basically means satisfy employees first and get satisfied
customers next.
Service Recovery
Despite the fact that the company cared about employees, tried to work honestly and strongly showing their
love to the clients, the agency was also experiencing difficulties and problems in the organization. As the
market in Kazakhstan is very unstable, people are most worried about profit and pursued a large number of
customers. As mentioned earlier, the company was small, so when the owners were planning to get a new
customer, there were a lot of questions about who will be able to service it. It was because of lack of time
and effort in the agency when they experienced service failure, which causes the organization to find a
thought-out plan to make a service recovery (Zemke & Bell, 1990). Wilson et al (2012), identified three main
reasons of service failure:
Delivered later and slowly: which happened most of the time because of lack of employees time;
Outcome could be incorrect or poorly executed: the reason of this failure could be almost the first
reason, because lack of the time could bring two incomes: bad result or late submission;
Employees may be rude and uncaring: it is logically on the third place of reasons, because if
customer didnt get correct information in time, account manager will feel stressed and it will be hard
to control emotions. However, it is not often happened situation.
It also connects with the effect of disadoption. Especially for the advertising market it has huge influence,
when one advertising company lost customers trust, it will be hard to another return customers believe.
Maybe, it will need more offers for customers to get their trust (Hogan, Lemon, & Libai, 2003). From this
point of view, it is important to understand when failure happened, the agency must first of all recognize it
and bring a lot of apologizes to the client give bonuses for the return of confidence. However, when the same
problem happened in different agency it could bring different effect. It can be useful for the company, when it
occurs in another agency and the client is forced to find a new contractor. On the one hand to return the trust
is difficult, but if agency could show different result based on previous results it is still possible.
All clients are very different and agency should be ready to meet different problems. Sometimes it is
happened when customers specifically searching how to make a scandal: to get more bonuses or not to pay
at all (Luria, Gal, & Yagil, 2009). In these cases it is very difficult to negotiate with the customers by
explaining to them where he was wrong.
Despite all the difficulties the agency has faced, they are trying to recognize their mistakes and make
conclusions, which largely help them in achieving their goals (see Figure 2).
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Conclusion
To sum up all that has been described previously, it can be noted that the digital agency "Wonderbar" - is a
small organization in Kazakhstan, which is trying keep pace with the times. In contrast to other advertising
agency, the company found their strategy of blue ocean (Kim & Mauborgne, 2014). It lies in the fact that
most companies are only fighting for the customer, but do not use any kind of strategy to retain and develop
customer relationships. "Wonderbar" chose strategy which was not only to sell products, but also to build a
good relationship with the client using the hospitality as a main tool.
The process of building a relationship with the customer is not only to meet customer needs, but also to form
a great team within the company that will be able to always maintain and find a quick solution to the problem.
This company is one of the best examples how it should work in Kazakhstan.
Recommendations
Due to the fact that employees in companies sometimes change it is very important to make up your own
organizational culture, which would be introduced by a set of rules:
To train all the necessary programs in the first week;
To provide a mentor who would be assessed and helped to develop a new employee;
To hold weekly meetings with the owners and discuss issues which arising during the week.
The second recommendation would be an opportunity to learn of each employee to manage their time
correctly, so that when the owners make a task allocation, they could clearly understand: how much time
they do they have.
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Service blueprint

Figure 1, Service Blueprint. Process
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Figure 1, Service Blueprint, Service recovery
10

Pictures
Picture 1 (view from the window)

Picture 2 (reception area)
Picture 3 (conference room)
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Picture 4 (working area)
Picture 5 (working area)
Picture 6 (kitchen)
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References
Altan, M., & Eringa, K. (2007). Service Management and Marketing: How to Create Value for the Customer.
In E. Cavagnaro, & F. Bosker, Service and sustainability - A travellers' guide . Leeuwarden: CHN.
Barbee, C., & Bott, V. (1991). Customer treatment as a mirror of employee treatment. Advanced
Management Journal, 5, 27.
Bowen, D., & Lawler, E. (1992). The empowerment of service workers: why, how and when? Spring, 1992,
31. . Sloan Management Review, Spring, 31.
Hogan, J., Lemon, K., & Libai, B. (2003, February). What Is the True Value of a Lost Customer? Journal of
Service Research, 5(3), 196-208.
Kidd, D. (2002). Collins Gem Latin Dictionary. Collins Publisher.
Kim, W., & Mauborgne, R. (2014). Blue Ocean Strategy: How to Create Uncontested Market Space and
Make the Competition Irrelevant. Harvard Business Review Press.
Lashley, C. (1995). Empowerment through delayering: a pilot study at McDonald's restaurants. International
Journal of Contemporary Hospitality Management, 7(2), 29-35.
Lashley, C. (2000). In search of hospitality: towards a theoretical framework. International Journal of
Hospitality Management, 19(1).
Lashley, C., & Morrison, A. (2003). Hospitality as a "Commercial Friendship". Hospitality Review, 6(3).
Lovelock, C., & Wright, L. (2002). Principles of Services Marketing and Management (2nd ed. ed.). Prentice
Hall.
Luria, G., Gal, I., & Yagil, D. (2009, November). Employees Willingness to Report Service Complaints.
Journal of Service Research, J2(2), 156-174.
Melissen, F., Van der Rest, J., Josephi, S., & Blomme, R. E. (2014). Hospitality Experience:An Introduction
to Hospitality Management. Groningen: Noordhoff Publishers .
Wilson, A., Zeithami, V. A., Bitner, M. J., & Gremler, D. D. (2012). Service Marketing, Integrating Customer
Focus Across the Firm . (2. edition, Ed.) Boston: Irwin/McGraw-Hill.
Zemke, R., & Bell, C. (1990). Service recovery: Doing it right the second time. 27, 42-48.
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Principles of Hospitality and Service Management

Lecturers: Professor Conrad Lashley and Drs. Klaes Eringa

A case analysis of Digital Agency

MA/MSc in International Hospitality and Service Management

Table of the content

The service concept of the company

The Evidence of service

Figure 1, Service Blueprint, Service recovery

Picture 3 (conference room)

Picture 4 (working area)

Picture 5 (working area)

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