The 7P’s

of
Service Organization

By:
Nishant
Kumar(MBA/4526/09)
Rajesh (MBA/4532/09)
Ankita
Singh(MBA/4557/09)
Abhinav
Kumar(MBA/4559/09
Baban(MBA/4564/09)
 Service Definition
A Service is an act of
performance offered by one
party to another. Although the
process may be tied to a physical
product, the performance is
transitory, often intangible in
nature and does not normally
result in ownership of any of the
factors of production.
 The 7 P’s of Services
Marketing

Produ
ct

Physic
al
Price
Eviden
ce
Peop
le
Promoti
Place on

Proce
ss
 PRODUCT
• A bundle of benefits.
• Aimed at customer’s need fulfillment
• Aimed at value creation ,product offering
must incorporate three key components-
1.Core product-solving benefits that
customers seek.
2.Supplementary services-these augment the
core product, both facilitating it’s use &
enhancing it’s value &appeal.
3.Delivery processes-how ,nature of
customer’s role in delivery process , how
long delivery lasts , style, etc.
 INFORMATI

T
A
T

LT
EN

ON

N SU
M
Y

IO ON
A
P

C
BILLIN
G COR ORDER
O E TAKING

L
TI

TA
SAFEKEEP
S EP

I
P
H Y
N C

IT
EX

O
ING

The Flower Of Service : Core product

surrounded by cluster of supplementary
services.
 Price
Pricing issues
• How much should be charged for this service?
• How sensitive are customers to various prices?
• What prices are charged by competitors?
• What discount(S)should be offered form basic
prices?
• Are psychological pricing point customarily used ?
 What should be the basis of
pricing?
• Execution of specific task
• Admission to a service facility
• Units of time
• Percentage commission on the value of
the transaction
• Physical resources consumed
• Geographical distance covered
• Weight or size of object serviced
• Should each service element be billed
independently?
• Should a single price be charged for a
bundled package?
 How should prices be
communicated to the target
market?

• Through what communication medium?

Advertising
Signage
Electronic display
Salespeople
Customer service personnel
• What message content i.e. how much emphasis
should be placed on price?
 Place
Basic Channel Decisions
• Do we use direct or indirect channels.

• Single or multiple channels.

• Cumulative length of the multiple channels.

• Types of intermediary.

• Number of intermediaries at each level.

• Which companies as intermediaries to avoid intrachannel

conflict.
Channel Intermediaries
• Wholesal
ers

• Agent

• Retailer

• Internet
 PROMOTION
5W’s Model of Promotion
• Who is the our target audience?

• What do we need to communicate and achieve?

• How do we communicate this?

• Where should we communicate this?

• When do the communications need to take place?

Personal
communication
Advertising Sales Publicity Instructio Corporate
promotions and public
s
relations
nal design
materials

Selling Broadcast Sampling Press Websites Signage

releases
Customer Print Coupons Press Manual Interior
service conference decor
s
Training Internet Gifts Special Broachers vehicles
events
TelemarketiOutdoor Sign up Sponsorshi Video/audio Equipment,
ng rebates p cassettes,c Stationary
d rom,
software

Word of Direct mall Price Trade Vice mail Uniform

mouth promotions shows
exhibitions
 PROCESS
Ultimately, only one thing really matters in
service encounters- the customer’s perception of
what occurred.

-RICHARD B.CHASE

Processes-architecture of services, describing

the method &sequence in which service operating
system works & how they link together to create
the service experiences & outcomes that
customer will value.
SERVICE PROCESS REDESIGN
•Direct service •Eliminates store •Increases
[service location convenience
delivered to limitations •Improves
the customer’s •Expands access
location] customer base
•Differentiates
company
•Bundled •Differentiates •Increases
service company convenience
[combines •Aids customer •Customizes
multiple retention service
service into a •Increases per
package] capita service use
•Improves
employee •Increases
•Physical satisfaction convenience
service[manipu •Increases •Cultivates
productivity
 Physical
Evidence
•Packaging.
•Internet/web pages.
•Paperwork (such as invoices, tickets and despatch
notes).
•Brochures.
•Furnishings.
•Signage (such as those on aircraft and vehicles).
•Uniforms.
•Business cards.
•The building itself (such as prestigious offices or
scenic headquarters).
 PEOPLE
• Many services depend on direct interaction between
customers and a firm’s employees. The nature of
these interactions ,such as getting a haircut or talking
to call centre staff strongly influences the customer’s
perception of service quality is often assessed based
on customer ‘s interaction with front-line staff ,and
successful service firm devote significant effort to
recruiting, training and motivating these employees.
• The most important of all P’s.
Can meet the challenge by following-
• Hire the right people
• Identify the best candidate
• Train service employees actively
• Build high performance service delivery teams
• Motivate and energize people
It was in the golden soil of Chikmagalur that a traditional family
owned a few acres of coffee estates, which yielded rich coffee
beans. Soon Amalgamated Bean Coffee Trading Company
Limited, popularly known as Coffee Day was formed. With a rich
coffee growing tradition since 1875 behind it . Coffee Day began
exporting coffee to the connoisseurs across USA, Europe &
Japan. In the calendar year 2000, Coffee Day exported more than
27000 tones of coffee valued at US$ 60 m .

Coffee Day has

 48 agents and 50 collecting depots.

Its two curing works at Chikmagalur and Hassan cure

over 70,000 tones of coffee per annum, the largest in the
country.

Coffee Day has a well-equipped roasting unit catering to

 Sub brands under Café Coffee
Day
• Coffee Day - Fresh & Ground
• Café Coffee Day
• Coffee Day – Vending
• Coffee Day – Xpress
• Coffee Day – Exports
• Coffee Day - Perfect
Product

• Its product mix comprises of products that

appeal to indian coffee and snack lovers.
• They grow the coffee they serve.
• Eatables like samosa, biryani, masala sandwich,
tikka sandwich, trufle etc.
• Merchendising includes Funky t-shirts, caps etc.
• The best selling item in summer is frappe, which
is coffee and ice cream blended together. The
young people favor it. In winter it is cappuccino.
Price
• Cater to the segment within the age group of 15-
29

• Price for a cup of coffee ranges from Rs.45 to Rs

80

• there has been only minor changes in the pricing

policy of Café Coffee Day. The changes have
been more due to the government taxes than any
thing else
Place
• 213 cafes in all major cities in India.

• located in High Street/ Family

Entertainment Centers.

• Near colleges

• Near gas stations

Promotio
n
• Café Coffee Day held a contest around a
very popular programme on Zee English
calledFriends. All the six lead characters are
shown often visiting a coffee shop and a lot
of youth like watching the programme.

• They have tied up with Channel [V]'s Get

Gorgeous contest.

• They have also done promotion for History

Channel, where they have run promotion for
Hollywood Heroes. They had asked a few
question and a lucky winner won a trip to
Hollywood.
Continued….
• Involved in ticket sales of Enrique ,WWE,
Elton John, and Bryan Adams ticket sales.
• They have been a part of movies like :
– Bas Yun Hi
– Khakee
– Main Hoon Na
– Kyun Ho Gaya Na
– Mujhse Shaadi Karoge
– Lucky
– Socha Na Tha
– And a lot of Telegu & Tamil movies
Sales Promotion
Café coffee day has been a very promising
initiator than campared to its competitors for
sales promotion like

• Giving away Gifts during occasions eg

valentine day
• Offering Coupons Café Citizen card which
allows regular members to avail
• discounts upto 20% and become a member
after a purchase amount of upto 2000 rs
• Sugar free campaign which was mainly done to
spread
• awareness of staying healthy and fit by using
the sugar free sachets
• Discounts during festive times to member
Process
• The order process at Café Coffee Day is
based on self-service

• They have a flexible delivery process, where

they wait for some time for the customer to
pick up the order but if the customer takes
too long then the order is delivered on his
table.
 Physical Evidence
• Logo, Colors, Images

• The Café Coffee Day Logo

• Décor & Architecture

• Literature
 People
• People at Café Coffee Day believe that
“People are hired for what they know but
firedfor how they behave”.

• Motivation and personal skill are laid

emphasize upon.
Spa Industry
 NATURALS UNISEX SALON & SPA
• 46 Salons in South Asia and 4 getting
operational every month
• Most happening chain in India
• Unisex salon is a concept popularized
by Naturals and has today become the
fastest growing
salon chain in the country
• equipment and products they use are of
premium quality and the
beauty care specialists are the experts
in the industry
Marketing Mix of Naturals Unisex salon
Product
• Hair cut for men, women and children

• Shaving, trimming

• Facials, bleaching

• Massage

• Spa

• Manicure

• Pedicure

• Waxing and threading

Price
Naturals follow premium pricing strategy
• Hair cut for men Rs 130 +tax
• Hair cut for women Rs 350 -700+tax
• Facials ranges from Rs 200- 2500
• Bride makeup costs Rs 7000+tax
• Shaving Rs 50+tax
• Spa Rs 1500+tax
• Hair coloring ranges Rs 700-1500+tax
• Hair Straightening Rs 1500-3500+tax
 Place
• 46 outlets in south asia
• Mainly focuses on south indian
market
• Leading salon in Tamil Nadu
• Situated in all metros of south India
Chennai, Hyderabad, Bangalore.
• 30 outlets in Chennai alone and 4 in
Coimbatore , started in Pune as well
 Promotion
Natural does two types of Promotion
1. Above the line
• Newspaper
• TV
• Magazines
• Radio
2. Below the line
• Sponser college functions
• Doctors day to attract students and working people attention
• Naturals often give Gift vouchers and discount coupons to its
customers.
Proces
s
• They provide service at customers
location too in case of marriage and
other such events.
• The blades are used only once and are
sterilized.
• The cosmetics used are of premium
quality.
• Customized service. Packages can be
altered according to customers choice.
People
• Naturals have trained and skilled
employees
• They create a rapport with their
customers, by interacting with them
often, giving tips,
being polite with them
• A feel good experience is for sure
from naturals salon.
Physical
Evidence
• Naturals salons are well designed and air-
conditioned.

• They have a pleasing environment, nice

interior decoration which looks rich.

• There is a waiters hall for those who

accompany the customers which is fully
furnished.

• Many magazines are there for the

customers to read.

• The place is very clean and tidy.

 Conclusion

The array of strategic tools

available to service marketers
tends to be broader than
commonly found in marketing of
manufacturing goods. With the
human element attached to
services it certainly requires
more tools.
Thank You