Service marketing report of Sushi Restaurant Essay Example
Service marketing report of Sushi Restaurant Essay Example

Service marketing report of Sushi Restaurant Essay Example

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  • Pages: 11 (3021 words)
  • Published: March 25, 2018
  • Type: Case Study
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Our service audit report has identified several key issues that Tomahawk's management team should focus on. One of these issues is the lack of integrated promotional strategies for Automatic, with their current efforts targeting all customers. We recommend that promotional efforts be directed towards specific market segments. Furthermore, we suggest shifting the emphasis of promotions from pricing discounts to highlighting the service experience and quality, as these provide more sustainable forms of competitive advantage.

The role of physical evidence is also crucial, as it serves as peripheral cues for customers' perceptions and expectations of a service. Additionally, it can facilitate the service delivery process. We have provided recommendations on how Automated can leverage its physical evidence to enhance customers' service experience and reinforce their positioning strategy.

Lastly, our report includes recommendations for supply and demand management, internal marketing, and improving customer quality, satisfaction, and

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retention efforts. These recommendations aim to contribute to more memorable and efficient service deliveries.

Table of Contents:
0 Situation Analysis - Customer Analysis - Perceived Risks
2 Service Product Strategy - Positioning Strategy - Service Process & Blueprint
35 Role of Physical Evidence
96 Current Pricing Strategies - Current Promotional Strategies
O Supply and Demand Management 2.0: Analysis of Customer Quality,
Satisfaction, and Retention OfferingsO Internal Marketing's Conclusion References Appendix 1.
Situation Multidimensionality: Located on level 3, Melbourne Central, which is considered an inner-city precinct for shopping, eating, and entertainment. This Japanese sushi train restaurant is situated in a highly competitive environment, with numerous direct and indirect competitors in Melbourne Central or on Swanson Street outside. The main competitor in the mall is O-Benton, located at Melbourne Central food court, offering sushi, sashimi, and Japanese hot food like ours.

Additionally, there

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are several sushi bars on Swanson Street that compete for the lunch hour crowd. A comprehensive Competitor Analysis can be found in Appendix 1. Japanese restaurants have become a significant part of Australia's culinary service sector. According to our online research, there are over 150 Japanese-style restaurants, cafes, and bars in Melbourne (MIX, 2006). These numbers demonstrate the popularity of Japanese cuisine in Australia. Consumers' knowledge of Japanese food is extensive and their expectations are higher than ever before.

Sushi has gained popularity in Australia as a healthier food option due to its low fat content and minimal use of artificial seasoning (Tanana ,2006). According to Melissa Stopples,M.D.(2006), sushi is considered an important aspect of healthy eating.

People's choices for healthier lifestyles are often influenced by their values and experiences, which are shaped by exposure to media. Research has shown that the health food market is dominated by females in their mid-30s and older (ABS, 2005). In Australia, women make up over 50% of the population, and the proportion of those aged 65 years and above has increased from 10.3% to 13.1% between 1985 and 2005 (ABS, 2005). This age demographic directly affects individuals' inclination towards living a healthier lifestyle.

The demand for fast and convenient products and services has risen due to the increasing amount of time spent at work and time constraints. Customers prefer products that require minimal preparation time and are easy to purchase and consume. In terms of affordability, some consumers opt to buy sushi from grocery stores or outlets as it is more cost-effective and ready-made.

Despite higher living costs, the restaurant service industry continues to prosper. In Melbourne, diners are generally knowledgeable

and demand high-quality food and exceptional service from restaurants. Automatic aims to adapt to evolving consumer needs and provide healthier meal options in a modern-friendly setting.

Regarding customer multidimensionality, there are two main segments: university students and business people. Additionally, there are two sub-segments: movie-goers shoppers.

Please refer to Appendix 2 for complete SOOT analysis.
Melbourne central is a popular destination due to its close proximity to the central business district, REMIT and Melbourne University, Hoots cinema, and various shopping options. Automatic offers two dining service categories: sushi train and standard dining in (ordering hot food from the menu). Currently, there is no take away service available.

Table 1 provides an overview of customer surveys, informal interviews with customers, and input from Automatic staff regarding market segments, benefits sought, frequency of use, buying conditions, dining modes, and expectations from the service. The table includes information about different customer segments such as university students, business people, and families. Each segment has unique preferences and expectations.

For instance, university students value affordability, socializing opportunities, and convenience. On the other hand, business people prioritize atmosphere frustration levels,dish variety,and service quality. Families are interested in convenience,novelty,and socializing.The table highlights that these market segments differ in terms of their preferences and expectations.

To maximize market captureand enhance their service capabilities,Automatic must understand varying purchasing intentionsand buying behaviors.It is crucial for them to address potential risks related to experience qualities which could lead to uncertaintyand negative consequences for customers.The following table, Table 2: Potential Risks and Strategists, illustrates the risks associated with dining at this establishment as well as recommended strategies to mitigate them.

Under the Financial category, concerns include whether the price will be higher

than expected, how much will be spent on the meal, and affordability. To address these concerns, customers can access a full menu on the website prior to dining. Additionally, displaying awards or positive federation reviews at the entrance can help alleviate any rushmore information. Testimonials displayed on thirstiest canals (website: www.Automatic.Com) can also provide reassurance.

In terms of Physical risks, potential discomfort while sitting at the sushi train or during dining is a concern. To tackle this issue, no changes are made to chairs at the sushi train but more space is provided between seats. Dining chairs are replaced with unconventional options that appear more comfortable.

Another worry in this category is whether the food will meet expectations and if customers can trust its freshness especially in regards to sushi and sashimi dishes. The presence of a sushi chef working onsite by the sushi train allows customers to witness the entire sushi making process firsthand. Dots placed on sushi train dishes indicate their preparation time and length of time on display.

To encourage positive word-of-mouth promotion from satisfied customers, it is suggested that service actively encourages feedback through comment or suggestion books located either on the counter or near entrance areas.The text emphasizes the significance of positive word-of-mouth, editorial reviews, and awards in promoting a business. It also suggests measures to ensure customer satisfaction, such as keeping food hot during delivery and providing updates on order status. Additionally, it highlights the importance of catering to specific customer segments and using imagery that appeals to the target market. The service offered by Automatic Restaurant is described as having both tangible (e.g., website, facility) and intangible (e.g., dish quality, service

delivery) elements.To address this intangibility, the restaurant can showcase tangible assets such as decor, physical infrastructure, uniforms for service providers, and print advertisements. In terms of inseparability, customers' perception of the service relies on the behavior of frontline staff and their interaction with customers. Customers' expectations significantly impact their judgment of the service quality. Despite serving handmade food at Automatic, there is bound to be some variability in the dishes' features and flavors. To minimize this heterogeneity, Automatic has extensively trained its staff and implemented standardized procedures during service delivery. This approach helps reduce variability.

Given that services are perishable, it is crucial for Automatic to create a memorable dining experience for its patrons. Dry foods and beverages can be stored as inventory; however, sushi and sashimi on the sushi train are highly perishable items that are typically removed after a certain time to maintain freshness. Furthermore, spare seats and tables cannot be saved for later during lunchtime; hence supply and demand management must be carefully considered. To attract customers during lower peak times on weekdays, Automatic may opt to lower prices or offer promotions. They provide various types of services to their customers including both core services and value-added offerings

The types of services provided by Admonishes restaurant can be summarized in Figure 2. These services include core and peripheral elements that contribute to a high-quality experiential dining experience. Both the core and supplementary aspects of the service are equally important and complimentary to each other. If one aspect fails, it can negatively impact the customer's evaluation of the other (Moorish, 2002).

Admonishes offers various value-added benefits to its target segment. These benefits include a

modern Japanese dining experience with satisfying physical evidence, such as a relaxing layout of the restaurant. The welcome/greeting insanity is also part of their offerings. Other benefits include value for money, fresh food and ingredients (especially important for sushi and sashimi), convenient location, no waiting time (particularly with the sushi train), and professional and friendly services.

Gastroenteritis aims to position itself as a modern Japanese restaurant that provides customers with a stylish, friendly, and comforting dining experience. Their main highlight is the sushi train. They want customers to see them as competitively priced, offering affordable options while still providing high-quality food and healthier meal alternatives that are convenient. According to survey results (Appendix 3), customers associate Automatic with "Friends", "Japanese Restaurant", "Friendly staff", "Clean", and "Modern".

There were varying opinions on the quality of the food at Automatic, with ten respondents rating it above average and the remaining five selecting between extremely poor and average. Similarly, when it came to value for money, the majority responded with 'average', while four respondents rated it below average. It is important for Automatic to address these issues in their promotional strategies in order to align consumer perceptions with their intended positioning.

The restaurant is open 7 days a week for lunch and dinner, and reservations can be made via phone or in person. Confirmation calls will be made on the morning of the booking. The business hours are as follows:

- Lunch (Monday-Sunday) 11:00 AM - 3:00 PM
- Dinner (Monday-Sunday) 5:30 PM onwards

Impounding in Automatic offers a sensational dining experience by providing meticulous and healthy Japanese cuisine in a memorable environment. The objective of Automatic is to consistently deliver

seasonal Japanese food and high-quality service to its customers.

Dining options include sitting at the sushi train or standard dining at a table with an a la carte menu. In Melbourne, Automatic has one of the most desirable sushi trains available, offering over 32 variable dishes and seating for approximately 40 people. The service process of the sushi train is shown in Figure 3.

Compared to other dining service processes, this process is more like self-service, simple, and has limited divergence.One crucial step in the process is to restock the sushi train, which is constantly monitored by a sushi chef in front of customers. The main responsibility of the sushi chef is to add freshly made dishes to the sushi train and remove plates that have been on the train for too long, ensuring food quality standards are maintained. Each dish on the conveyor belt has a colored sticker on its cover, allowing the chef to easily determine when it was made and how long it has been on display. These stickers serve as a mechanism for quality control and assurance.

Another aspect that requires attention is when the front line staff counts the plates after each meal based on their color. This counting is done to calculate the total bill and usually takes one to two minutes. However, there is currently no control or double checking of this process, leading to potential service failures such as overcharging or undercharging.

The replenishment of the sushi train also demonstrates high divergence as it relies on the subjective judgment of the sushi chef regarding how many more dishes should be prepared. In contrast, standard dining-in processes are more complex and require

customization and adaptability by service personnel due to the dynamic restaurant environment.

Figure 4 illustrates this relatively standardized but flexible service process.During the order taking process, front line staff can decrease pre-purchase risk by giving recommendations and explanations about specific dishes. The service quality and customer satisfaction depend on the service provider's ability to fulfill their role and follow scripts because the service is highly interactive. Wireless communication technology is used effectively in all service procedures to ensure efficiency. The central registry computer stores all order information, while the bar and kitchen terminals are connected to the wireless network. This allows bar and kitchen staff to access orders and messages in real-time, reducing communication costs and minimizing information loss during transitions. However, there is a potential bottleneck in the overall service process as the average food serving time exceeds customer tolerance levels according to blueprints. This could lead to order cancellations and dissatisfied customers. Although IT technology can improve operational efficiency, it is not perfect and may experience downtime. Therefore, relying heavily on technology for tasks can also be a potential bottleneck in the service process.

The following incidents have been identified as critical in the service:To enhance the quality of service at Automatic Restaurant, various measures have been taken. These include reorganizing and allowing customers to choose how they want their dishes administered and distributed. Additionally, efforts have been made to improve the dining environment by enhancing aspects like lighting and music. Accuracy in billing for sushi train dishes has also been prioritized, as well as enhancing waiting service.

Table 3 provides a summary of common complaints and the corresponding actions taken to address them. For

instance, delays are investigated promptly to identify the cause and expedite the preparation of specific dishes. In cases where wrong orders occur, appropriate steps are taken such as notifying the kitchen and only charging for the correct dish. If necessary, involvement of the manager is sought, and complimentary food or drinks may be offered.

One suggestion to further improve the service process at Automatic Restaurant is implementing an online reservation system. This would provide greater booking flexibility and attract more potential customers. Considering that a restaurant website already exists, it should be feasible for the businessperson to implement this feature.

In order to ensure consistent quality across all sushi train dishes, standards need to be established to minimize variability between chefs. Monitoring customer complaints and food wastage can aid in determining chefs' remuneration while also ensuring accurate counting from the sushi train service. Although it may slightly prolong the service process, implementing this protocol will ultimately lead to improved service quality while preventing failures.
It is recommended to get it right the first time in order to make recovery from service failures more challenging. To foster trust among employees, supervisors or managers can randomly conduct double checks at specific times. These measures are expected to improve billing accuracy by front line staff. In addition, wait staff should promptly clear finished plates from the sushi train and update the register to make waiting times appear shorter for customers (S. Taylor, 1995). To prevent long wait times in food delivery at Automatic restaurant, distractions such as magazines or encouraging customers to have a few drinks at the bar should be provided. This can help reduce the perceived length of the

wait. Weekly technical maintenance for ordering and payment systems is also recommended to prevent potential service failures due to system or connection issues. Training front line staff and managers on handling routine contingencies can help lower costs. Physical evidence plays an important role in shaping customer perception of serviceability. Therefore, it is crucial for the physical evidence and atmosphere of Automatic Restaurant to match its desired image and appeal to customers. The restaurant is situated on the third floor of Melbourne Central and may not be immediately visible depending on the entry pointIf you enter from La Tribe Street downstairs, the restaurant will be directly in front of you by the escalators. However, if you approach from the level 2 escalators on the Swanson Street side, the restaurant is hidden around a corner. Figures 5 and 6 show different views of the outside of the restaurant. The signage blends well with the wall color but may sometimes be difficult to distinguish. The transparent glass exterior allows customers to see inside, where they can easily view the dining area, bar, and sushi train. Five customers who were interviewed mentioned that it was specifically the sushi train that caught their attention when passing by. The transparency of the restaurant allows customers to observe and form expectations about food quality and service, reducing perceived risk. It also enables customers to identify with other diners in the restaurant. Despite management's efforts to position it as "friendly" and "affordable," some customers have described it as "exclusive" and "expensive" based solely on its exterior appearance. Interestingly, when surveyed afterwards, most of fifteen Automatic's patrons associated terms like "Friend" and "Friendly" with

the restaurant after experiencing its service. However, five interview participants had a contrary initial impression of Automatic from its external appearance."Automatic should consider improving the restaurant's visual appeal from the outside to align customer perceptions with management's desired image. Suggestions include placing a menu outside, having an appealing external sign, and using signage around Melbourne Central to direct customers. The service escape of the restaurant consists of various areas: queuing area, dining area, sushi train, semi-visible kitchen, bar, bathroom, and front counter. A blueprint of the interior is shown in Figure 7. The service escape aims to be aesthetically pleasing with a clean and modern decor using red, white, and black colors throughout furnishings like cutlery, crockery, tables, and chairs (as seen in Figure 8 and Figure 9). Customers can partially see inside the kitchen where chefs are working.The sushi chef is situated in the sushi train area, allowing customers to witness the preparation of dishes and reducing perceived risks. This proximity also fosters a connection with customers and facilitates customization based on their preferences. Figure 10 presents an open sushi kitchen within the sushi train, where customers can interact and actively participate in the service process. They have the opportunity to evaluate food options before deciding, with prompt delivery directly in front of them. This eliminates waiting time and deliberation. However, Figure 11 raises concerns regarding the chairs surrounding the sushi train. They are closely packed together, offering limited space for movement or storing personal belongings. Additionally, these chairs may feel slightly unstable and springy.

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