INTERNAL RESEARCH ASSIGNMENT

Name of the candidate: KHUSHBOO MALHOTRA

Enrollment No. : 07380303914
Course: MBA II (EVE SHIFT) SECTION -B
Batch: 2014-2016
Subject: SERVICES MARKETING
Subject code: MS-215
Topic of assignment: Q3
Subject Teachers name: MS. AARTI SEHGAL

RESEARCH ASSIGNMENT
Question 3
Visit two local retail service providers that you believe are positioned very
differently (e.g. McDonalds and a Dominos).

From you own observations,

compare their strategies on the elements of the services marketing mix.

Answer3.

3.

SERVICE MARKETING MIX

The service marketing mix is a combination of the different elements of services
marketing that companies use to communicate their organizational and brand message
to customers. The mix consists of the seven Ps i.e. Product, Pricing, Place,
Promotion, People, Process and Physical Evidence. The service marketing mix, also
known as the extended marketing mix, treats the service that the business offers just
as it would treat a product. While the first four Ps are involved in product marketing
too, the remaining three Ps focus mainly on service delivery and enhancing customer
satisfaction.

Elements of Service Marketing Mix

Product
Pricing
Place
Promotion
People
Process
Physical evidence

MARKETING MIX OF MCDONALDS

The marketing mix of Mcdonalds consists of the various elements in the marketing
mix which form the core of a companys marketing system and hence helps to achieve
marketing objectives. The marketing mix of Mcdonalds discusses the 4ps of the
leading burger chain across India offering the tastiest burgers and french fries.
PRODUCT

McDonalds places considerable emphasis on developing a menu which customers

want. Market research establishes exactly what this is. However, customers
requirements change over time. In order to meet these changes, McDonalds has
introduced new products and phased out old ones, and will continue to do so. Care is
taken not to adversely affect the sales of one choice by introducing a new choice,
which will cannibalise sales from the existing one (trade off). McDonalds knows that
items on its menu will vary in popularity. Their ability to generate profits will vary at
different points in their cycle. In India McDonalds has a diversified product range
focussing more on the vegetarian products as most consumers in India are primarily
vegetarian. The happy meal for the children is a great seller among others.
PRICE
The customers perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth. A product is
more than a physical item, it also has psychological connotations for the customer.
The danger of using low price as a marketing tool is that the customer may feel that
quality is being compromised. It is important when deciding on price to be fully
aware of the brand and its integrity.
In India McDonalds classifies its products into 2 categories namely the branded
affordability (BA) and branded core value products (BCV). The BCV products mainly
include the McVeggie and McChicken burgers that cost Rs 50-60 and the BA
products include McAloo tikki and Chicken McGrill burgers which cost Rs20-3 This
has been done to satisfy consumers which different price perceptions.
PROMOTION
The promotions aspect of the marketing mix covers all types of marketing
communications One of the methods employed is advertising, Advertising is
conducted on TV, radio, in cinema, online, using poster sites and in the press for
example in newspapers and magazines. Other promotional methods include sales
promotions, point of sale display, merchandising, direct mail, loyalty schemes, door
drops, etc. The skill in marketing communications is to develop a campaign which
uses several of these methods in a way that provides the most effective results. For
example, TV advertising makes people aware of a food item and press advertising

provides more detail. This may be supported by in-store promotions to get people to
try the product and a collectable promotional device to encourage them to keep on
buying the item.
At McDonalds the prime focus is on targeting children. In happy meals too which are
targeted at children small toys are given along with the meal. Apart from this, various
schemes for winning prices by way of lucky draws and also scratch cards are given
when an order is placed on the various mean combos.
PLACE
Place, as an element of the marketing mix, is not just about the physical location or
distribution points for products. It encompasses the management of a range of
processes involved in bringing products to the end consumer. McDonalds outlets are
very evenly spread throughout the cities making them very accessible. Drive in and
drive through options make McDonalds products further convenient to the
consumers.
PEOPLE
The employees in McDonalds have a standard uniform and McDonalds specially
focuses on friendly and prompt service to its customers from their employees.
PROCESS
The food manufacturing process at McDonalds is completely transparent i.e. the
whole process is visible to the customers. In fact, the fast food joint allows its
customers to view and judge the hygienic standards at McDonalds by allowing them
to enter the area where the process takes place. The customers are invited to check the
ingredients used in food.

PHYSICAL EVIDENCE

McDonalds focuses on clean and hygienic interiors of its outlets and at the same time
the interiors are attractive and the fast food joint maintains a proper decorum at its
joints.

MARKETING MIX OF PIZZA HUT

Pizza hut is one of the leading pizza fast food chains in India. The pizza chain was
one of the first entrants in India for pizza and was soon followed by Dominos.
However, the pizza chain continues to maintain its premium image. This article
discusses the marketing mix of Pizza hut which falls in services marketing and hence
7 Ps of Pizza hut are mentioned herewith.
PRODUCT
Pizza hut is most prominently known for its Italian products, viz Pizzas, breads and
pastas. But at the same time, due to increasing competition from Dominos,
McDonalds and KFC, Pizza hut has gone local as well with its Birizza which is a type
of Biryani. However, the pizza hut chain is most known for its tasty variety of Pizzas.
The product characteristic of Pizza hut pizzas is that the pizzas are high quality and
are served in sizeable portions. Thus, people love the rich taste of pizzas and pastas of
Pizza hut. Another companion of Pizza hut is the Pizza hut delivery, which like
Dominos, is concentrated on delivering the pizzas at home.
PRICE
The pricing of Pizza hut is premium / skimming pricing. Pizza hut knows that it is the
first entrant for pizzas in India. On top of it, Pizza hut provides higher quality food as
compared to its competitors and at the same time the ambiance of the pizza hut chain
is better and richer than most of its competitors who serve Italian products. Thus, even
though Pizza hut has a premium pricing, people prefer Pizza hut over others.

PLACE

Pizza hut is present in most of the A grade places across urban areas. This placement
helps Pizza hut maintain its premium positioning in the mind of people, because B
grade town people will have to go to the A listers area to actually have a pizza hut
pizza. On the other hand, A grade towns are more likely to have pizza from pizza hut
than from dominos because of the price positioning. Due to a higher price, and a
higher quality of food, pizza hut has to be present in A grade towns only. In B grade
towns, people would more likely prefer the more affordable Dominos.
PROMOTION
Pizza hut is known to be a smart promoter for its own products. The ATL promotions
mostly concentrate on introduction of new products as well as to build brand equity.
During festivals, the ads take a different route and promote discounts and offers on
products to attract customers. At the same time, pizza hut does several enterprise
discounts as well and gives discounts to corporate customers. Finally, the success of
the chain depends on local marketing. And local marketing depends on the local pizza
hut outlet which may use BTL activities like hoardings, newspaper inserts, guiding
customers to the outlet and lollipops.
PEOPLE
The best part of Pizza hut are the people. Pizza hut introduced a novel way of
showing customer appreciation the bell. Anyone who rings the bell on exiting from
Pizza hut is greeted with a loud thank you from all the waiters in Pizza hut. These
people also do performances frequently on celebrations and most important of all, the
pizza hut chain has the most polite and well mannered people in the fast food industry.
PHYSICAL EVIDENCE
The only reason Pizza hut is able to demand premium pricing is because of its
physical evidence and the ambiance. The cutlery of Pizza hut is fantastic and it is an
enjoyable experience to have the pizza out of the pan right into our plate. The bowls
served along with pasta are also good. The glasses are big. And the seats and tables

are comfortably spaced giving people the complete experience of luxury dining.
Combine that with the excellent people in Pizza hut and you have an excellent
afternoon or evening of dining out for Italian cuisine.
PROCESS
Pizza hut serves only freshly made Pizza and pastas. The process of Pizza hut
involves having the raw materials half prepared in the kitchens of Pizza hut. Once the
order is received, the pizza is immediately prepared and served hot. In case of pizza
hut delivery, pizza hut has gone a further length and introduced a hot mark on all their
packaging for Home delivery. If the mark is not red, than the pizza is not hot and it
can be returned to the outlet. Furthermore the outlet also promises 30 minutes delivery
for which it has to maintain a slew of drivers who deliver the pizza.
This completes the marketing mix of Pizza hut. The reality of the market is that Pizza
hut is a fantastic food chain, but it is slowly being overtaken by Dominos because of
the presence of Dominos to deliver pizzas to even B grade towns and cities. Ignoring
the B grade towns is a deliberate marketing strategy of Pizza hut. But in the long term,
whether this marketing strategy is right or wrong, only time will tell.

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