Assignment on Service Marketing- 1

Using the GAP Model and Service dimensions

Submitted by
KARISHMA J.AMIN
II PGDBM-A
(REG.No. 2K9028)

Submitted to
PROF. SHEEBA THOMAS

MOUNT CARMEL INSTITUTE OF MANAGEMENT

58, PALACE ROAD, BANGALORE

NOVEMBER 2010
A Brief introduction of the subject background

A study on the acquisition of the new clients for the company. In any firm client plays a very
important role because they bring profit to the business. When a company focus its attention on
the old customers in the same way getting new clients for the company is important. It costs 10
times more as per 10/40 rule more to get a new customer than retaining the old one. And if one
old customer is not happy with your company then he will tell the others. So it takes 10 times
more to get a new customer than retaining the old one. By this we come to know that not only
having old customers is beneficial but also to get a new customer for the company. All hotels are
following different marketing strategy to acquire new and to retain their old clients. The study
will make a clear differentiation of the strategy which is followed by two of the well known
Indian brands such as Taj and Oberoi and the international brands that is Marriott and Hyatt.
This will help me to make a clear division as to how Starwood are different and also come up
with new ideas to get new clients for the company.

Statement of the problem

With the increasing competition and the arrival of new global brands like Marriott and Hyatt it
has become increasingly difficult to retain the existing set of clients. Hence it is important to
look at new clients for acquiring, retaining and increasing the market share of the company. The
study deals with the new generation marketing strategies’ used by Star hood to beat the market
and stay at top.

Objectives of the study

 To study the Perception of Starwood in Bangalore market vis a vis competition –

o Indian brands such as Taj and Oberoi and international chains such as
o Hyatt and Marriott.
 To study the hotel stay and the usage pattern of the 25 potential customers
 To study the Importance of loyalty programmers in client acquisition
 Table No-1 Showing The Pattern of bookings at 5 star hotels

Sample Size - 25 Booking Numbers Percentage (%)

Employees  11 33%
Overseas. Clients 14 42%
Others 8 24%
Total 33 100%

Anaysis
11 members said that they book their employees in the 5star hotels. And 14 members said that
they book their overseas clients in the 5star hotels and the few out of the 25 said that they also
book their Directors, and the Superiors in the Hotels.

Graph No 1 Showing The Pattern of bookings at 5star hotels

120%
100%
100%

80%

60%
42%
40% 33%
24%
20%

0%
Employees  Overseas.Clients Others Total

Percentage(%)

INTERPRETATION

From the above chart it is clear that most (56%) of the bookings in the 5 star hotels is by
Overseas clientele. Closely followed by the employees who are booking, and the others category
comprising of the Directors of the company and foreign delegates.Hyderabad(15%). In the other
group cities like Pune, Mangalore, Badri, and Ahmadabad have been mentioned.
Table No- 2 Showing The Hotel Chains Patronized in India
 Hotels Patronized Numbers In Percentages
Taj 16 31%
Oberoi 4 8%
Leela 3 6%
Starwood 17 33%
Hyatt 3 6%
Others 9 17%
Total 52 100%

Analysis
Many companies said that they prefer any hotels which gives them good tariff, so 17 companies
said that they prefer Starwood compared to any other hotels, followed by the Taj 16, here the
other categories also has received a good response from the respondents.

Graph No -2 Showing The Hotel Chains Patronized in India

35% 33%
31%
30%
25%
20% 17%
15%
10% 8%
6% 6%
5%
0%
Taj Oberoi Leela Starwood Hyatt Others

In Percentages

INTERPRETATION
Here we can make a clear differentiation between the Indian brands and International brands and
we can also know the hotel usage pattern, of the companies. We can draw a conclusion Starwood
having its footprint in almost all metros has been able create a superior Brand Loyalty.As we can
see from the above chart it’s clear that in India though Starwood has 26 brands its taking the first
position or we can say that maximum of the companies refer Starwood than the other brands.
Table No 3 showing -What do you look forward to in a hotel while booking for
accommodation?
 Customer preferences Numbers In percentages
Tariffs 12 26%
Location 14 30%
Brand name 10 22%
Any other 10 22%
Total 100%

Analysis
First preference was given to the Location(14), secondly most of the companies said that they
will look in for the tariff before going in for a hotel(12), lastly they said they will go in for the
brand name and the other.
Graph No 3 showing -what do you look forward to in a hotel while booking
for accommodation?
35%
30%
30%
26%
25%
22% 22%
20%

15%

10%

5%

0%
Tarrifs Location Brand name Any other

In percentages

INTERPRETATION
Most of the companies said they look forward to the location (30%)of the hotels. Because they
refer the hotel which is good, also which is near the airport . So location carries a good weight
age. Secondly, it will be the tariff(26%) of the hotel.
.
Table No 4 showing- Members of any Loyalty Program

Loyalty Program Companies  In Percentages

 Yes to Starwood Hotels 8 32%
Yes to other Hotel Chain 8 32%
No 9 36%
Total 25 100%

Analysis
8 out of the 25 companies said that they are the member of the loyalty program offered by
Starwood and 8 said that they are the member of the loyalty program offered by the other hotel
chains, and 9 companies said that they are not a member of any loyalty program.

Graph No 4- showing Members of any Loyalty Program

37%
36%
36%
35%
34%
33%
32% 32%
32%
31%
30%
Yes to Starwood Hotels Yes to other Hotel Chain No

InPercentages

INTERPRETATION
As we can see that most of the companies are not members of any loyalty program. The chains
must see that they communicate the loyalty program to the companies so that they know the
benefit of it. Starwood is not only offering the loyalty program to their guest but also for the
planners and the bookers. The companies will be benefited out of this. A Company should know
that once they become the member of any loyalty program then they are benefited to get discount
on their stay in the hotels or they even might get free airline miles
Table No 5 showing- How will you Rank Starwood Hotels?
 Ranking Parameters Responses In Percentages
Excellent 7 28%
Good 17 68%
Average 1 4%
Other 0 0%
Total 25 100%

Analysis
17 companies ranked Starwood has good in their service, price, and location, 7 companies
ranked Starwood excellent, 1 company ranked it average.

Graph No 5 showing- How will you Rank Starwood Hotels

80%
70% 68%

60%
50%
40%
30% 28%

20%
10% 4%
0%
0%
Excellent Good Average Other

In Percentages

INTERPRETATION
When asked with the companies as to how they will rank Starwood hotels has most of the
companies said that its good and some said they are excellent(68%). Coming to the average part
most companies felt that some of the brands in certain cities are really very good in their
services and the same brands in another cities are not good in their services. Being such a
international brands it’s very important that the brands maintain their standard in the same level.

Table No 6 showing The Hotel Chain being Patronized Abroad

 Hotels Numbers In Percentages
Taj 1 4%
Hyatt 3 12%
Marriott 1 4%
Starwood 2 8%
Orchid 1 4%
NA 17 68%
25 100%

Analysis
17 companies didn’t know the hotel stayed by their employees. 3 companies preferred Hyatt, 2
companies preferred Starwood. followed by Taj, Marriott, and Orchid.

Graph No-6 showing The Hotel Chain Being Patronized Abroad

80%
70% 68%

60%
50%
40%
30%
20%
12%
10% 8%
4% 4% 4%
0%
Taj Hyatt Marriott Starwood Orchid NA

InPercentages

INTERPRETATION

When asked with most of the company as to which hotel they patronized on the international
Trip most of the them didn’t know, because they is a high possibility that their branch head in
abroad books the hotels for their client so they didn’t know about it, or may be they have gone to
that country only once so they didn’t have a idea about the hotel they stayed in. Highest was the
Hyatt(12%) followed by Starwood(8%). Taj didn’t get a very good response.
Table No 7 showing- How do you book your hotel stay when you go abroad
Attributes Response In Percentages
Direct 18 75%
Online 0 0%
Travel agent 4 17%
Partners 1 4%
Others 1 4%
Total 24 100%

Analysis
18 companies said that they book their hotel stay directly when they go abroad. 4 of them said
that it was through some travel agents followed by partners and others.

Graph No 7 showing- how do you book your hotel stay when you go abroad
80% 75%
70%
60%
50%
40%
30%
20% 17%

10% 4% 4%
0%
0%
Direct Online Travel agent Partners Others

In Percentages

INTERPRETATION

Companies said that they book their trip when they travel international directly(75%), none of
the companies said that they book it online(0%) and few of them said that they book the trip
through their agent(17%). In addition, rest said that through their partners abroad.
 MICE
Table No 8 showing- Do you organize residential meets both within India and
Abroad?
Response Numbers In Percentages
Yes 18 72%
No 7 28%
25 100%

Analysis
18 companies said that they do organize residential meet both within India and Abroad whereas
7 people said that they don’t.

Graph No 8 showing-do you organize residential meets both within India and
Abroad?
80%
72%
70%
60%
50%
40%
30% 28%

20%
10%
0%
InPercentages

Yes No

INTERPRETATION
72 % of the companies said that they do organize residential meet both in India and abroad. So, a
huge percentage of the companies organize residential meetings so these companies have to be
made aware of all the various benefits and programs Starwood Hotels has to offer.
Table No 9 showing- travel agencies and travel operators working with?
Numbers of
Booking means % companies
20
Direct 80%
5
Agents(SOTC,Thomas Cooks) 20%

Analysis
20 companies said that they book their travel trip directly. And 5 companies said that they book
it online.

Graph No 9 showing- travel agencies and travel operators working with?

90%
80%
80%
70%
60%
50%
40%
30%
20%
20%
10%
0%
Direct Agents(SOTC,Thomas Cooks)

INTERPRETATION

Many companies said that they book their official trip whenever they have directly. They do not
go to the agent and some said that they are connected with some tour operators with whom they
work and they get the tickets done for them. Some companies book it directly because they may
not have many travelling jobs so whenever a need arise they do it but themselves.

SUMMARY OF FINDINGS

Objective No 1
 Starwood has 9 distinct brands under its banner whereas when it comes to other hotel
chains they have just one brands
 Most of the customers are very loyal to Taj so they will take time change their brands to
Starwood.
 They prefer that Starwood has better loyalty program compared to the other hotels.
 Most of companies said that the services offered by Starwood is better than any other
hotels.
 Hyatt and Marriott being a international hotel chain plus they do not have hotels in most
of the cities in India there is a disadvantage for them.
 30% of the people refer the hotel which is near to the airport so the location places a very
important role and 26% of company say that the Tariff plays a very important so if the
tariff of Taj is Cheaper than others then they will prefer than hotel.

Objective No 2
 42% of the companies said that they do book the overseas client whenever they come to
India which is quite a good number.
 The reason for the travel is mostly the business travel followed by the Customers meeting
 33% of the company prefer Starwood in India and 31% of the company prefer staying in
Taj so we can know that most of the company do use the Hotels.
 Company also book hotels when they have MICE operating in their organization.

Objective No 3
 Loyalty program thou it is very important, only 32% of the companies said that they are
members of the program offered by the other hotels
 32% of the companies said that they are a member of the loyalty program offered to them
by Starwood.
  And 36% of the companies are aware of the program being offered by there are not a
member of any loyalty program offered by any Hotel chains.
SUGGESTION USING GAP MODEL

Gap 1 – The Knowledge Gap

Prescription: Learn what Customers Except
Firstly the company should what does the customers expect from them, they need to do
Continuous research studies periodically and knows what does the customers are really Want
from them. Whenever any customer comes to the hotel they have certain Expectations from
them. So it’s important that the company know what the customer wants from them. Secondly
implement and effective customer feedback system that includes the satisfaction level of the
customer, make the analysis of the customer satisfaction and the customer panels thirdly the
company must increase the interactions between the managers and customer.
Keep the customer update about the new offers. And communicate to the customers about the
loyalty programs which is been offered by the company. Encourage communication between the
front-line employees and the management

Gap 2- The Standards Gap

Prescription : Establish the right service processes and specify standards
Get the customer service processes right :
Use a rigorous, systematic and customer-centric process for designing and re designing customer
service processes. Establish for each step in service delivery a set of clear service quality goals
that are challenging, realistic, and explicitly designed to meet customer expectations Ensure that
employees understand and accept goals, standards and priorities.

Gap 3- The Delivery Gap

Prescription : Ensure that Performance Meets Standards
Ensure that customer service team is motivated and able to meet service standards Improve
recruitment with a focus on employee- job fit, select employees for the abilities and skills needed
to perform their job well. Train employees on the technical and soft skills needed to perform
their assigned tasks effectively, including interpersonal skills, especially for dealing with
customers under stressful conditions Clarify employee roles and ensure that employees
understand how their jobs contribute to customer satisfaction, teach them about the customer
expectations, perceptions and problems. Build cross- functional service teams that can offer
customer- centric service delivery and problem resolution. Empower managers and employees in
the field by pushing decision- making power down the firm.Educate customers so that they can
perform their roles and responsibilities in service.

Gap 4- The Internal Communications Gap

Prescription – Ensure that Communications Promises are Realistic
Educate managers responsible for sales and marketing communications about the operational
capabilities. Seek inputs from front line employees and operations personnel when new
communications programs are being developed.Let service providers preview advertisements
and other communications before customers are exposed to them.Get sales staff to involve
operations staff in face to face meetings with customers Develop internal educational and
motivational advertising campaigns to strengthen understanding and integration among the
marketing, operations and human resources functions and to standardize service delivery across
different locations Ensure that communications content sets realistic customer expectations.

Gap 5- The Perceptions Gap

Prescription : Tangibilize and Communicate the Service Quality Delivered.
For complex and credence services, keep customers informed during service delivery on what is
being done, and give debriefings after the delivery so that customers can appreciate the quality of
service they received.

Gap 6 – The Interpretation Gap

Prescription : Be Specific with Promises and Manage Customers Understanding of
Communication Content
Pretest all advertising, brochures, telephone scripts and web site content prior to external release
to determine if the target audience interprets them as the firm intends. Ensure that advertising
content accurately reflects those services characteristics that are most important to customers.Let
the customers know what is and is not possible and the reason why.
Offer customers different levels of service at different prices, explaining the distinctions. Identify
and explain in real time the reason s for shortcomings in service performance highlighting those
that cannot be controlled by the firm.Make the bills precise- what work was performed in
relation to a specific billing statement.

Gap 7- The Service Gap

Prescription: Close Gaps 1 -6 to Meet Customer Expectation Consistently
The final service you offer to your customers will depends on this whether there are satisfied
with the service provided by you after they have given the company the necessary feedback.

CONCLUSION

From this questionnaire it is clear that in India Starwood has a most number of preferences than
in any other hotel chains. Starwood is preferred by most of the customers because of its service,
location which is closer to the airport, then comes the Tariffs’ and the brand name. But
surprisingly when asked about abroad as to which hotel chain will they patronize?, most of the
customers said that it is Hyatt and Starwood ranking is number 2.

Clients have embraced and valued the Loyalty programs from Starwood . Loyalty program is
beneficial not only for the hotels, but also for the guests, the person who books and for the
company as well. The various loyalty programs like SPG, Starchoice, SPP and SPB enables in
driving new guests, New companies acquisition, and also retaining them. In every sales
meet/presentations, the Loyalty programmes must be well communicated, on how beneficial it is
when any future meetings is been conducted or if at all they stay in any of our hotels/ brands
worldwide
 Tele Calling New account -QUESTIONNAIRE:

(1)What is your company’s main line of business? (can refer website)

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CORPORATE TRAVEL (DOMESTIC)

1. Whom do you book in 5 star hotels?

(a) Employees (b) Overseas Client

2. Please name the hotel/hotel chain being patronized

(a)---------------------------------------(b)----------------------------------(c)---------------------------------
(d)--------------------------(e)------------------------------------(f)Any
others(s)------------------------------------
3.What do you look forward to in a hotel while booking for accommodation ?Please indicate
priority in descending order.

(a)Tarrifs ……. (b)Location…. (c)Brand name …. (d)Any other………….

4. Are you members of any loyalty programme?

(a)----------------------- (b)------------------------(c)------------------------(d)---------------------------
(e)------------------------ (f) -----------------------------------

5. How will you rank Starwood Hotels Has?

(a) Excellent (b) good (c) Average (d) Any other
CORPORATE TRAVEL (INTERNATIONAL)
1.Please name the hotel/hotel chain being patronized

(a)---------------------------------------(b)----------------------------------(c)---------------------------------
(d)--------------------------(e)------------------------------------(f)Any
others(s)------------------------------------
2.How do you book your hotel stay when you go abroad?

(a) Direct (b) Online (c) Travel agent (d) Partners/Clients/Customers

MICE

1. Do you organize residential meets both within India and/or abroad?

(a) Yes (b) No

2.Kindly name the travel agencies/tour operators whom you work with

(a)---------------------------- (b) ---------------------------(c)----------------------------

(d)------------------------------

NAME:- Designation:-