Service Marketing Diary

Prachi Kulkarni
PGCPRCM

1 November 2009 – 21 December 2009

 SERVICES

• Intangible
• Heterogeneous

2|Page
• Simultaneous Production and Consumption
• Perishable

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 INDEX
Page
Articles Service Marketing Perception Date No.
"Smile," Put On A Happy Face For Global Consumer + Building Customer 30
4
Kodak Relationship + Participation 0ct
GAP Model : Not knowing What Consumer 05-
Disney To Rebrand Mickey Mouse 5
Wants Nov
Indian retail is emerging wiser from 12-
News 6
the experience Nov
FedEx launches domestic express Understanding the Difference between 12-
7
service in India Global Consumers Nov
Wal-Mart Plans To Disperse
Service Recovery Effects + Managing 13-
Customers And Avoid Repeat Of 8
Demand and Capacity Nov
Black Friday
Starbucks CEO Sends McCafé A Consumers Expectation of Services : 13-
10
Venti Thank You Training + Customers Perception Nov
Delivering Services through Electronic 15-
Google in its crosshairs 11
Channels Nov
Understanding the Difference Between
15-
Mobile helpline for the farmer Global Consumers + Cultural Influence on 12
Nov
Expectations
IndiaMART.com launches new Delivering Services through Electonic 15-
13
service Channels Nov
Adidas Aids Bangladesh With Global Consumer + Building Customer 17-
14
Almost-Free Footwear Relationship Nov
Taxi service outside Rly station a Physical Evidence and Servicescapes + 18-
16
distant dream Managing Demand and Capacity Nov
Air Canada begins in-flight internet 20-
Consumer Expectation of Services 17
service Nov
EMI scheme will be trendsetter in Consumers Expectation of Services + 23-
18
organised retail Building Consumer Relationship Nov
Buddy, Can you e-mail me 100 23-
High Performance Service Innovation 21
bucks?? Nov
NSE's new MF service system from Customers Expectations of Services + High 24-
23
Nov 30 Performance Service Innovation Nov
CM opens AC bus service with High Performance Service Innovation + 25-
25
automated ticketing Customer Defined Service Standards Nov
Toyota to recall 110,000 trucks 25-
Service Recovery Effects 26
over corrosion concerns Nov
Soon, raise a toast in the coffee 12-
High Performance Service Innovation 27
shop Dec
Consumer Expectation of Services +
Wal-Mart Provides More Instant 16-
Adjusting Capacity to meet with the 29
Gratification Via Drive-Thrus Dec
Demands
McDonald's Free Wi-Fi Should Managing Demand and Capacity + Pricing of 16-
30
Worry Starbucks Service Dec
Bharti Retail stops usage of plastic 18-
Customer Expectations of Services 31
bags in Delhi NCR stores Dec
When industries care about their 19-
News 32
customers Dec
Customers expectations of services + 22-
Coffee cafes brew heady cocktails 33
Building Customer Relationship Dec
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"Smile," Put On A Happy Face For Kodak
Posted by Stephanie Startz
October 30, 2009 10:10 AM
(http://www.brandchannel.com/home/post/2009/10/30/Smile-Put-On-A-Happy-Face-For-
Kodak.aspx )

Kodak launching their first brand campaign since 2005, Kodak is trying to cheer up
consumers worried about the ailing economy. Starting tomorrow, Kodak will inform
consumers that "It's Time to Smile" in a series of television and print advertisements.

The branding campaign is a response the challenging economic climate. Eastman Kodak
Company commissioned a report, the “Future of Reconnectivity,” which found that during
"tough times, people have a common desire to reconnect with loved ones, in part, by
sharing photos."

Besides traditional media buys, Kodak has begun to harness Web 2.0 marketing tools.
This summer the company tapped two college students from Purdue University, the
"Compliment Guys," as their brand ambassadors on Facebook. "The Compliment Guys"
share a similar outlook as Kodak's "It's Time to Smile" campaign, seeking to lift spirits
amidst the worst economy since the Great Depression.

Kodak could use some cheering up of its own, announcing Thursday a $111 million dollar
third quarter loss, the company's fourth quarterly loss.

Kodak was late to embrace digital camera technology, and has long lagged behind
competitors. Perception of the brand's technical prowess suffers, and it is still heavily
identified with film.

Branding positivity is gaining in popularity, and consumers are increasingly receptive to

such campaigns. But Kodak needs to counter its public perception as a second-rate digital
brand if it expects to turn a profit.

Analysis

Global Consumer + Building customer relationship + Participation

• During the tough times, one remembers the loved ones most. As an answer to
‘Customer Requirement Reaserch’, Kodak is launching an advertisement campaign
to allow its customers smile during the recession period. Service Provision is a
drama, wherein, a service provider performs as to please the audience.

• The organization has also facilitated and recruited 2 of its customers as

‘Compliment Guys’ to spread awareness about the service campaign and to sustain
the competition in internet era. (The roles and responsibilities of customers should
be communicated in advertising and personal selling. By previewing their roles and

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 what is required of them in service process, customers can self select into the
relationships)

Disney To Rebrand Mickey Mouse

Posted by Stephanie Startz
November 5, 2009 05:56 PM
(http://www.brandchannel.com/home/post/2009/11/05/Disney-To-Rebrand-Mickey-Mouse.aspx
)

No more Mr. Nice Guy Mouse. Far away in a secret lair

(corporate park, rather), Mickey Mouse is undergoing a massive regeneration. Feared to
be seen as a corporate overlord rather than adorable, fun-loving cartoon brand, Disney
has ventured into the cryo-chamber and begun to enliven the Mouse for a new generation
of children and consumers.

The new Mickey will be slowly unveiled, first in the video game Epic Mickey for the
Nintendo Wii, due out next year. As the New York Times describes it, the game will "show
the character's darker side." Our new Mickey is multifaceted, and can be at times
"cantankerous and cunning, as well as heroic, as he traverses a forbidding
wasteland."

But executives at Disney are treading carefully, afraid to tinker with their $5 billion cash
mouse. The industry agrees: "There’s a distinct risk of alienating your core consumer
when you tweak a sacred character,” said Matt Britton, managing partner of brand
consultancy Mr. Youth.

Mickey's popularity in the United States has begun to wane. He's been crowded out of
children's hearts by growing competition from Nickelodeon, Pixar and Dreamworks
characters and personalities. Executives consider the rebrand of Mickey's personality
necessary to remain relevant in the marketplace.

The recent success of the dark children's tale Where The Wild Things Are may provide a
roadmap for Disney, proving that multiple generations can embrace a timeless tale that
at times, gets a little scary, but remains good.

Analysis

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 GAP Model : Provider Gap 1 : Not knowing What Consumer wants

• The customer gap is the difference between customer expectations and

perceptions. Disney, in its attempt to makeover Mickey Mouse, might not know
what the customers expect.

• Disney’s Mickey Mouse has been a part of an entire generation. Although the
change is only constant, Disney might have failed to understand the friendly and
chipy mouse is classy in his own attire. The expectations of viewers/consumers
could be different. The experience that Mickey series allowed one generation, could
be expected to transmit to the later one also.

Indian retail is emerging wiser from the experience

G Shrikhande, CEO, Shoppers Stop
12 Nov 2009,
Economica Times
(http://economictimes.indiatimes.com/articleshow/5220981.cms?frm=mailtofriend )

2008-09 was a year of across-the-board losses for retailers. Shoppers Stop, Reliance
Retail and Aditya Birla were some of the big names to post losses, while chains such as
Straps, Etam, Subhiksha and Pyramid headed the list of high-profile casualties forced to
fold. But now the blues are being shrugged off, and Indian retail is emerging wiser from
the experience. When the crunch from the GFC hit India in the second half of last financial
year, it surprised as industry too caught up with the good times.

Too many retailers were expanding fast, chasing too many stores and pushing too many
products, formats and promotions than what the market was ready for. Too much of focus
was on what competitors were doing rather than on viable and sensible market
strategies.

Really, at that time, our industry was in a bubble and the result of the downturn was to
prick the bubble. It was tough, but it forced businesses to trim fat. Those that survived
have moderated the pace of their store openings. Prudent stock management, focus on
proven formats and products, leaner teams, optimising costs are now the mantras for
revival. This new self discipline has also helped companies deal with other
problems. In reaction to the recent doubling and tripling of power costs, Shoppers Stop
has been able to cut power usage by 14%.

A number of external factors have also helped to boost industry’s optimism. At the height
of the boom, rental prices skyrocketed. And when the services tax on rent was
introduced, rentals accounted for a whopping 35 % of all costs for most retailers.
Fortunately, with the downturn, rental prices have normalised and landlords are now
open to revenue-sharing agreements in combination with lower minimum rents. Likewise,
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key consumption indicators are up again; stock markets have revived & the global
economy is slowly recovering.

This combination of improved externals, along with Indian retail’s renewed focus on
profitable growth, has not only shrugged off the blues, but has also been a blessing in
disguise. At Shoppers Stop, we think we now have a business model that can weather
future downturns.

FedEx launches domestic express service in India

12 Nov 2009, 1836 hrs IST,
ECONOMIC TIMES
(http://economictimes.indiatimes.com/articleshow/5223637.cms?frm=mailtofriend )

NEW DELHI: FedEx Corp on Thursday announced the launch of FedEx India, a next-
business-day domestic express service for the Indian market.

The company said FedEx India will provide customers with a reliable and
convenient shipping solution for their time critical commercial and non-
commercial consignments across key Indian markets. The launch follows the
company’s domestic express service launches in China, Mexico and the UK.

"FedEx is committed to supporting Indian businesses by providing a competitive service

to key markets across India. Adding a domestic express service to our broad portfolio of
international products increases our ability to further facilitate commerce for customers
doing business in India, demonstrating our continued commitment to the market and our
confidence in its future growth," said Robert W. Elliott, president, FedEx Express, Europe,
Middle East, Indian Subcontinent and Africa.

FedEx India offers delivery to 50 major Indian cities from 14 key cities and includes real-
time online tracking, on-call pick up and is backed by the FedEx money-back guarantee.

"As one of the world’s fastest-growing economic markets, India has great untapped
business potential," said Kenneth F Koval, vice president, Operations, FedEx Express,
India. "The fourteen cities selected for FedEx India were singled out for their highest

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commercial potential. Customers in these cities will get the same excellent customer
experience for both domestic and international shipments" he added.

FedEx India is available in Ahmedabad, Bengaluru, Chennai, Coimbatore, Faridabad,

Ghaziabad, Gurgaon, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi, Noida, and Pune.

Analysis

Understanding the Difference Between Global Consumers

• A global conglomerate like FedEx has recognized the potential market in India by
opening up in 14 major cities already.

• The customers in India, believe in cultural collectivism and as a developing nation

requires faster and reliable delivery of couriers and parcels, domestically as well as
internationally. Service provided by current players in same segment in India,
would definitely will be improved after introduction of courier giant in market.

Wal-Mart Plans To Disperse Customers And Avoid

Repeat Of Black Friday
Posted by Dale Buss
November 13, 2009 05:02 PM
(http://www.brandchannel.com/home/post/2009/11/13/Wal-Mart-Aims-To-Disperse-The-Herd-
To-Avoid-Repeat-Of-Really-Black-Friday.aspx )

Say what you want about Wal-Mart, but two statements about the Behemoth of
Bentonville are unassailable: They’re the most dominant retailing force on the globe right
now; and Wal-Mart executives learn from their mistakes. So don’t expect a repeat
on November 27 – retailers’ hoped-for post-Thanksgiving Black Friday – of last year’s
really black Friday, when an early-morning crowd pouring into a Wal-Mart on Long Island
trampled a poor fellow to death. In part to avoid criminal charges by the Nassau County
DA, Wal-Mart initiated some new crowd-control policies locally and then decided to use
them nationwide for this Black Friday.

So, most U.S. Wal-Marts will remain open from Thanksgiving Day into Friday, intending to
take some of the drama and danger out of the decades-old “doorbusting” tactic where
the store opens early in the morning and consumes rush madly in. That was the problem
in last year’s death.

And before Wal-Mart departments slash prices on specific items on Friday morning at 5
o’clock, managers will allow customers to begin to line up at different locations
throughout the stores.

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Other steps include bringing in a crowd-management staff and more training of
regular employees in crowd control so that they can maintain orderly entry into
the store.

Retailers including Best Buy and Target have been honing their skills at crowd control for
years, but as usual, the industry is learning a thing or two from Wal-Mart’s approach. For
the first time, the National Retail Federation issued crowd-management guidelines for
special sales events like Black Friday, and many of its members have been revisiting their
safety plans.

All in the hopes that, this year, the Friday after Thanksgiving will be black only for the
right reasons.

Analysis

Service Recovery Effects + Managing Demand and Capacity

• Thanksgiving falls on the fourth Thursday in November in the United States, Black
Friday occurs between the 23rd and the 29th of November. According to Reuters, in
2007, 135 million people participated in the Black Friday shopping rush. In 2008,
34-year-old Jdimytai Damour, a Long Island Walmart temporary employee, was
trampled to death after frenzied shoppers smashed through the store's front doors.

• Understanding and accepting the accountability and thereafter taking precautions

to avoid the same situation in future is a perfect way to satisfy customer’s
expectations of recovery.

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 Customer Expectation of services

Ideal, Desired Service Expectations Personal Need

Lasting Service Intensifiers (derived)

Lasting Service Intensifier (Philosophical)

Adequate Service Expectations Temporary Service Intensifier

Perceived Service Alternatives

Customer Self Perceived Role

Situational Factors

Predicted Services

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Starbucks CEO Sends McCafé A Venti Thank You
Posted by Anthony Zumpano
November 13, 2009 10:55 AM
(http://www.brandchannel.com/home/post/2009/11/13/Starbucks-CEO-Sends-McCafe-A-Venti-
Thank-You.aspx )

Once Starbucks reached its saturation point (one location on practically every block), it
had nowhere else to go but down – and that’s exactly where it went. Stores were
underperforming, the stock price plummeted, and the brand was forced into a steamed-
milk showdown when the McCafé coffeehouse concept began brewing front and off-
center at most McDonald’s restaurants. But less than two years after Howard Schultz
returned as CEO, following an eight-year hiatus, Starbucks’ future looks as sweet as a
Strawberries & Crème Frappuccino.

Every brand experiences growing pains, and Starbucks, which opened new locations at an
arguably pathological rate, was no exception. Speaking at Thursday’s Ernst & Young
Strategic Growth Forum, Schultz felt his brand lost its focus after 15 years of infallibility:
“Somehow, along the way, the level of that feeling” – the love inspired by a
people-based business – “got somewhat blurred by success.”

Schultz made some difficult decisions, but they were essential for the brand’s survival. If
your brand is in trouble, or isn’t as successful as it once was, you can learn a lesson or
two from Schultz’s boldness. In February 2008, shortly after returning to the company,
Schultz ordered all stores closed for three hours to focus on barista training, a move that
subjected the brand to ridicule from its competitors. He shuttered some 900 stores, a
very public admission that “we had stretched the brand beyond its demography,” as he
told the forum.

He insisted that the company focus on its core principles, cut waste, and innovate, and
when a certain fast-food franchise with even more locations than Starbucks decided to
hone in on its core business, Schultz claims it was a blessing in disguise.

“McDonald's made us better,” he said, not quite elaborating. Did McCafé somehow inspire
the development of Starbucks’ Via instant coffee? Not necessarily, but the McDonald’s
competition and what Schultz called “a death march of people saying Starbucks’ days
were over” forced the brand to execute drastic decisions that made it a leaner (by
comparison), profitable company again.

Analysis

Customers Expectation of Services: Training + Customers Perception

• Competition allows the improvisation among organizations. Customer expectations

are beliefs about service delivery that serve as a standard or reference point
against which performance is judged.

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 • MsCafe and Starbucks are big players in same market. Service pattern of both
services are almost identical, but because of heavy competition, the firms trail
each other on improvisation scale by introducing better service measures and by
training the staff to achieve the desired expectation in customer’s mind.

Google in its crosshairs

Rahul Sachitanand
Business Today
November 15, 2009
(http://businesstoday.intoday.in/index.php?
option=com_content&task=view&id=13232&issueid=72)

How do you SMS a business associate who is more comfortable interacting in Hindi? A
new software for mobile phones could solve this problem and make conducting business
easier. Tachyon Technologies, a Bangalore-based software maker, has just launched the
Beta version of its Quillpad software for mobile phones even as tech giant Google works
to perfect its own translation tool Indic.

THE PLAN: Quillpad offers an accurate translation tool to people sending local
language messages across networks. The software—a reasonably-sized 355 KB
download—lets you type a word, hooks up to the Net and provides the relevant Hindi
options. Then the message is encoded, sent back to the phone and delivered to the
recipient in Hindi.

THE CHALLENGE: The software understands distinct sounds that a Hindi alphabet
represents. For instance, in Hindi the letter “d” can be used to write both “da” and the
heavier “dha”. Quillpad predicts which sound a particular letter should take, depending
on the other letters a user has typed.

THE COMPETITION: A year after Tachyon launched its web transliteration tool, Google
responded with Indic. Now, it expects Google to hit back on the mobile front, too.

THE BOTTOM LINE: Tachyon hopes to make money from people buying its software, as
well as royalty it expects from handset makers and operators.

Analysis

Delivering Services through Electronic Channels

• Technology, especially information technology is currently shaping the field and

profoundly influencing the practice of service marketing.

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 • Electronic channels require predesigned service. The competition gives scope for
improvisation. Development of Tachyon Technologies’ software that transfers
English text in hindi, reflects the cultural influence and requirement of such service.

Mobile helpline for the farmer

Rahul Sachitanand
November 15, 2009
(http://businesstoday.intoday.in/index.php?
option=com_content&task=view&id=13233&issueid=72 )

The hitherto “unconnected” farmer could soon see his cultivation yield better results,
thanks to the mobile phone’s increasing reach. Wireless solutions producer Handygo
is set to provide an array of services to farmers, covering weather, seed prices, fertiliser
doses and best irrigation management practices.

The firm has inked a deal with the Indian Meteorological Department (IMD) for weather
data and will update the information twice a week. For now, Handygo has tied up with
Airtel to provide these services. The firm plans to add Tata Indicom and Idea to this list
soon. Here’s how the service hopes to help farmers:

* The service is available on even basic mobile phone handsets.

* The advisory is available for Rs 1 per minute.

* It is operational in Punjab, Haryana, Andhra Pradesh and Tamil Nadu.

* Airtel subscribers in these areas can dial 55678 to access the service.

* Information is categorised by state and delivered in 17 languages.

Analysis

Understanding the Difference Between Global Consumers + Cultural Influence

on Expectations

• Telecom industry is one of the major service oriented industry currently in India. In
its format of oligopoly, it caters to masses of county.

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 • Telecom companies have identified the potential growth in rural area and
therefore, focusing largely on rural reach. With above mentioned offerings, the
farmers and service provider will be benefited enormously.

IndiaMART.com launches new service

15 Nov 2009, 0407 hrs IST,
Pallavee Dhaundiyal Panthry ,
Economic Times Bureau
(http://economictimes.indiatimes.com/articleshow/5231754.cms?frm=mailtofriend )

After its successful venture into print media - sourcing guides, IndiaMART.com has now
ventured into free tenders service. Tenders, which could earlier be accessed only after
making a payment, are now available absolutely free on IndiaMART.com. "The website
http:// tenders.indiamart .com/ will have detailed information on government and
private tenders from all across India", said Dinesh Agarwal, founder and CEO,
IndiaMART.com

About 50,000 live tender alerts from all across India are provided from this platform and
revenue is generated from the advertising on the portal. The step is expected to create a
strong ripple effect in the industry and across business users of the service. "We at
IndiaMART.com have always provided our customers the best business services to choose
from. We are committed to helping small businesses by all means possible and wish to
play a catalyst's role in their growth. I am sure the free tender service will benefit all such
organisations who use tenders as instruments for their business growth" , said Agarwal.
The company plans to update the tenders section on daily basis, helping all business
users to fully rely on the service.

The news has been widely welcomed by IndiaMART's members. Praising the initiative ,
Akhilesh Gupta, an IndiaMART member, said, "I have been an IndiaMART member since
the past six years and have always seen IndiaMART going the extra mile to help its
members. Their tailor-made solutions do add tremendous value to our business. The free
tender service is a big benefit for users like me and will save a lot of time and cost in
growing our business." IndiaMART.com claims to be India's largest online B2B
marketplace connecting global buyers with suppliers through business directories, online
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product catalogs, buy-sell offers, industry specific marketplaces, printed media and trade
shows participation. Founded in 1996, the company has a presence in over 100 cities
pan-India . The company boasts of winning numerous awards over the years including
Red Herring 100 Asia & Emerging India and the company has been widely covered by
media such as CNBC, BBC, Business Money, CNN, Business world, Economic Times,
Financial Express, etc. Its existing investors include Intel Capital and Bennett, Coleman &
Co. Ltd (Times Group), India's largest print media group.

Analysis

Delivering Services through Electronic Channels

• In addition to provide opportunities for new service offerings, technology is

providing vehicles for delivering the existing service in more accessible, convenient
and productive way. Technology facilitates basic customer service functions like bill
payments, tracking orders and checking account records, browsing through the
updates and news.
• Technology always takes service offering a step ahead with improvisations. The
horizontal service benefit introduced by Indiamart.com will allow the users access
the data which was available only after payment previously.

Adidas Aids Bangladesh With Almost-Free

Footwear
Posted by Sara Zucker
November 17, 2009 05:48 PM
(http://www.brandchannel.com/home/post/2009/11/17/Adidas-Aids-Bangladesh-With-Almost-
Free-Footwear.aspx )

Bangladesh's Nobel Prize winner, Muhammad Yunus, the pioneer of micro-loans that help
the poor start their own businesses, recently inspired Adidas to lower its training shoe
prices to a staggering bargain for those in developing countries who can't afford regular
prices: around €1.

This venture follows last month's news that the footwear giant would invest $100M to set
up a manufacturing plant in the country. Adidas, which has been charged with labor
exploitation in developing countries, sees this commitment as an opportunity to improve
its image. Yunus stressed that his country needed "social businesses" to help create jobs,
and Adidas has agreed to produce shoes in Bangladesh on a non-profit basis.

Adidas spokesman Jan Runau confirmed the agreement to begin production of the shoes
in Bangladesh next year, but said the project was at an early stage. It has not been
decided whether or not the shoes would carry the Adidas brand or its trademark three-
stripes design.

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The investment can have a big impact: garment workers in Bangladesh have an annual
income of less than $1,396 per capita – making them the poorest paid in the world.

Though additional design and branding decisions have not been finalized, Adidas hopes
that this move will improve its reputation for social responsibility. With million-dollar
contracts and sponsorships on the company's bills each year, this philanthropic venture
should aid everyone, including Adidas.

Analysis

Global Consumer + Building Customer Relationship

• Understanding of cultures around the globe is very important aspect of

international service marketing.

• By producing economy friendly footwear, Adidas is not only making an easy entry,
but also building upon the trust and reliability of brand as a socially connected.

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 Provider Gap

Gap 1

Not knowing what customer expect

Gap 2

Not having the right service quality designs and standard

Gap 3

Not delievering to service design and standards

Gap 4

Not matching performance to the promise

Taxi service outside Rly station a distant dream

Nidhi Singhi ,
TNN 18 November 2009, 09:28pm IST
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 (http://timesofindia.indiatimes.com/articleshow/5240642.cms?frm=mailtofriend )

LUDHIANA: Commuters would have to wait for some more time to book their taxis from
just outside the city railway station as the proposal in this regard is hanging fire. As of
now, the railway authorities have started this service only in Chandigarh, whereas in
other cities including Ludhiana, Amritsar and Jalandhar, the facility is still a distant dream.

Indian Railway Catering and Tourism Corporation (IRCTC), which is responsible for
providing this service to the commuters cites some technical reason for the delay.
Notably, the authorities had been conducting the trial for taxi services in Mumbai in the
month of April and in the first phase they had to launch the service in 25 cities of the
country including Delhi, Chandigarh, Jammu, Ludhiana, Amritsar, Jalandhar, Bangalore,
Hyderabad and Kochi, within a span of three months. However, till now, the authorities
have been successful in making available the service only in some metropolitan cities.

Commuters feel there is a dire need for better means of transport from the city railway
station as most of the time unnecessary quarrels erupt over the fixation of autorickshaws’
fare. The autorickshaw drivers charge more money from commuters and passengers are
left with no option rather than bowing down to their whims. “Railway authorities have
not even fixed the rate list for the convenience of commuters,” lamented
Harmeet, a commuter.

Even the railway employees believe that the authorities should start the service as soon
as possible. They say it would not only add revenue to railways, but also save the
commuters from unnecessary harassment. On the condition of anonymity, one of the
railway employees said that there have been regular complaints of commuters being
overcharged or looted by the autorickshaw drivers. With the launch of taxi service outside
the railway station the frequency of such incidents would diminish, he said.

While talking to the TOI, Aneet Dullat, chief regional manager IRCTC told that till now,
they have launched the service only in metropolitan cities. He said in other cities the
service would be launched in the next phase, but that would take some time. He said as
the taxi service in cities like Chandigarh and Delhi, was receiving a good response they
were hopeful that in other cities too, the response of commuters would be fine.

Analysis

Physical Evidence and Servicescape + Managing Demand and Capacity

• Understanding customer gap and taking action in order to minimize it. In this case,
although government is aware about the requirement and expectations of
customers, it lacks the ability to fulfil it.

• The reason can be explained as lack of resources and not having right service
quality design or standards. The gap exist because IRCTC may not be fully aware
about the problems travellers face while commuting to the stations, or think the
requirement is less important or unrealistic.

Air Canada begins in-flight internet service

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IANS 20 November 2009, 10:13am IST
(http://timesofindia.indiatimes.com/articleshow/5249885.cms?frm=mailtofriend )

TORONTO: Air Canada on Thursday unveiled its plans to offer in-flight internet service.

The national carrier said it has started trials from Thursday to offer internet service on
select flights on its Toronto-Los Angeles and Montreal-Los Angeles routes. With the trial
run, Air Canada joins many international airlines which already offer in-flight internet
service.

Passengers can access the service on their own laptop for $9.95 per flight or Personal
Electronic Device (PED) for $7.95 per flight.

In a statement, the Montreal-based airline said trials will runs till Jan 29 when it will
analyze the results and customer feedback before introduction of the service on
other routes.

"Air Canada is the first Canadian airline to begin offering customers access to the internet
while they are flying,'' Louise McKenven, senior marketing director for the airline, said.

She said, "With this service, our customers will be able to email, work and surf the net
while flying, and more fully enjoy what is already a superior travel experience that
includes complimentary seatback entertainment and access to standard power outlets.''
The airline needs to obtain regulatory approvals and develop ground infrastructure for the
in-flight internet service.

Ron LeMay, president and CEO of Aircell which is the world leader in airborne
communication, said, "We are very pleased to launch Gogo (the name of his company's
internet service) on Air Canada, the first Canadian airline to offer in-flight internet.

"Air Canada's customers will now feel the freedom of having the world at their fingertips
thanks to having full internet access in flight. We look forward to working with Air Canada
to deliver that world to them.''
The world's eighth largest airline, Air Canada operates to nearly 80 international
destinations.

Analysis

Consumer Expectation of Services – Desired Service (Lasting Service

Intensifier)

• Technology by all means is a way to sustain in the service market.

• Air Canada is venturing a step above by offering Wi-Fi services on flight. As many
international airline already offering the service, customers flying with Air Canada
would expect the similar kind of service. The situation would be ‘ideal or desired
service expectation’ that is getting fulfilled by offering the inflight wi-fi
accessibility .
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EMI scheme will be trendsetter in organised retail
23 Nov 2009, 0016 hrs IST,
Sreeradha D Basu,
ET Bureau
http://economictimes.indiatimes.com/articleshow/5258581.cms?frm=mailtofriend )

Levi Strauss India, the wholly-owned subsidiary of San Francisco-based denim giant Levi
Strauss Co, has been instrumental in accelerating growth of the denim market in India.

The 1994 entry of the inventor

of jeans in India received a
tepid response as Pepe Jeans
and Arvind Brands’ Lee locked
on to youth connect faster. It
was only at the turn of the
century that this age group
embraced Levi’s as its ‘Low
rise-Dangerously low’
campaign, coupled with an
altered entry-level pricing and Shyam Sukhramani,
expanding distribution Marketing Head, Levi
network, found a place in the Strauss India
consumer mind space.

From then on, Levi’s made all the right noises, be it ‘Live unbuttoned’ or ‘Diva rules’. Its
focus on the women’s market backed by celebrity endorsements has helped it grab
almost 40% share in the Rs 2, 000-crore Indian branded denim market. Levi’s also has a
made-for-India non-denim street wear brand, Sykes. Levi’s long-term focus on India is
about to yield rich dividends with the company set to notch Rs 500-crore sales this year,
thereby becoming one of the first international apparel brands to successfully replicate its
global brand appeal here.

Today, with a leading share of the premium and super-premium branded denim market, it
banks heavily on product innovation and a superior retail experience to drive growth. Levi
Strauss India marketing head Shyam Sukhramani spoke to Sreeradha D Basu about
product innovation and how Levi’s is trying to excite the Indian youth. Excerpts:

After fifteen years of operations in India, how does it mark a new beginning for
the Levi’s brand?

21 | P a g e
The past 15 years of the Levi’s presence has revolutionised the way consumers wear
premium jeans in India. Today, jeanswear as a category is the youth’s most preferred
casual choice. This has been driven primarily by innovative new products that have been
brought out consistently by Levi’s since its launch. We will continue to build on the
affinity that the consumer has for the brand by increasing the pace of new product
launches. Product newness and innovation will be supported by the launch of new
formats and shopping experiences for the consumers. Consumers will be increasingly
rewarded as well with the introduction of the ‘Levi’sLOOP’ – our loyalty programme. We
are currently piloting in Bangalore and plan to roll out nationally in the near future. A key
focus for us going forward is to ensure that we empower a large portion of the urban
population to access the Levi’s brand a lot more and increase the share of the product in
their wardrobe.

How are Indian customers different from other markets?

Indian consumers are upgrading their choices and demanding the best of international
trends at their doorstep. While their consumption pattern is becoming similar to their
western counterparts, they are a lot more demanding and brands that deliver
inherent value are their first choice.

With Priyanka Chopra as your latest brand ambassador, how fruitful do you
think your association with her and other youth icons like Shahid Kapoor for
LSS will be for your brand?

Bollywood stars are the true celebs who drive mass aspiration and fashion sensibility.
Levi’s has seen on a string of Bollywood stars and will continue to do so in the future as
well. Our latest ambassador Priyanka has launched the collaboration line that we have
developed with Tarun Tahiliani. This line, which has been recently released in retail, is
doing very well.

What is your take on lifestyle trends and consumer behaviour among the Indian
youth?

India is a very important market for Levi’s Strauss & Co, to drive future growth and
salience for its brands. Consumers in India are coming of age – and with that awakening
are opening up the largest youth market in the world. India is an extremely interesting
market in that consumers here have a lexicon that is global and yet uniquely Indian.
Levi’s will continue to leverage its global expertise and credentials to bring the latest in
jeanswear to consumers in this country. We also recognise the extreme importance of
being able to speak to our consumers in a language that resonates with them. This is one
of the key reasons that we have consistently chosen to promote the Levi’s brand through
associations with the best of Indian talent – whether they be actors like Priyanka Chopra,
or designers like Tarun Tahiliani.

How do you plan to use innovation to compel consumers to buy?

Consumers today want more, better and more frequently. In what may well become a
‘game changer’ in the organised retail industry for premium branded apparel, the new
22 | P a g e
EMI scheme announced by Levi’s allows consumers to get into their favourite Levi’s
whenever they please, as often as they please, as much as they please, at no additional
cost, and from anywhere in the Levi’s brand’s wide network of exclusive stores. This
enables many more young adults across the country access to the Levi’s brand.

How do you plan to develop denim as a luxury concept?

We will be launching collaboration lines with leading Indian and international designers in
the future to develop the Luxe Denim category. Our latest collaboration with Tarun
Tahiliani is already in retail. More recently we had launched a collection designed by
Damien Hirst, the highest paid living artist, based out of the UK. Soon we will be
launching a line designed by Jean Paul Gaultier and a collaboration that we have done
with House of Holland from the UK.

For a heritage brand like Levi’s, what is the way forward in the Indian market?
What are the challenges you face?

Levi’s has an extremely rich history of more than 136 years! Since we created the
category of jeans, we truly understand our consumers’ evolving needs. This
understanding and expertise has driven us to deliver compelling new products that are
rooted in our heritage or are at the cutting edge of future trends.

We relaunched the quintessential 501 jeans that has driven fresh reappraisal of this
product and grown adoption significantly. We were the first brand to launch Levi’s
Redwire jeans, that enabled consumers to carry their music with them in their jeans!
Cutting across consumer segments and aspirations, the Levi’s brand has a quintessential
appeal amongst youth that enables us to experiment across multiple axes of heritage and
modernity. This ability drives our entire marketing mix, be it product innovation, retail
experience and communication. Our future task is to bring this unique proposition to a
large part of the Indian consumers and empower them to adopt premium jeans!

Analysis

Consumers Expectation of Services (Lasting service intensifier) + Building

consumer relationship

• Levi’s has been ever evolving brand with long history of more than 136 years. It
has adopted and created many trend of its own. The brand is beyond a particular
segmentation and has followers across all sets .

• As culture plays important role while taking the business internationally, it has also
proven that the human nature dictates that people tend to view other cultures
through the often cluttered lense of its own. So that, the fashion as per say, is
almost similar across world.

• The implication of payment service, EMI (easy monthly instalments) would be a

breakthrough for the Indian retail market. India ranks highest for the number of buyers
and EMIs will permit customers to buy first and pay later.
23 | P a g e
 • By providing a service like this, Levi’s is also making customers loyalty members of the
brand, giving them a reason to shop more tension-free.

Buddy, Can You E-Mail Me 100 Bucks?

The Next Big Thing in U.S. banking may be mobile person-
to-person money transfers
By Amy Feldman
November 23, 2009
(Business Week, November 23, 09 – Page No. 68 )

What if you could send money to that friend who loaned you $20 last week by using your
mobile phone rather than having to go through the trouble of trekking to the ATM or
mailing a check? All you'd need would be your buddy's e-mail address or cell number—
and presto.

Folks in Japan and Europe can already do that. Soon Americans will, too. Studies show
that U.S. consumers, particularly the younger set, have embraced the convenience of
online shopping and e-banking and are now ready to move to the next frontier: person-
to-person mobile payments. A recent poll by Mercatus, a financial consulting firm,
showed that the proportion of people ages 26 to 34 who had used a cell phone to buy
goods or pay for a product or service had doubled, to 14%, in the past year. "We are at
the tipping point," says Mercatus managing partner Robert Hedges.
That's why a host of banks and financial companies are gearing up to add person-to-
person payments to their existing mobile and online banking platforms. PNC Financial
Services (PNC), Bank of the West, and the Boeing Employees' Credit Union have teamed
up with CashEdge, an outfit that already processes more than $50 billion a year in
transactions among financial institutions, with plans to launch services in early 2010.
Fiserv (FISV), a technology company that handles bill payments for 3,100 financial
institutions, is marketing a similar service. MasterCard (MA) is working with Obopay, a
24 | P a g e
mobile payment startup with funding from Nokia (NOK), while Visa (V) has been testing a
service with U.S. Bancorp (USB). "Payment habits change pretty slowly, but Generation Y
expects this," says Thomas S. Kunz, director of payments and e-business at PNC
Financial.
While the banks are only now waking to the potential of person-to-person payments,
PayPal (EBAY) has built its business on them. The company, acquired by eBay in 2002,
boasts more than 78 million active account holders worldwide and introduced a service
earlier this year that allows users to make transfers over a cell phone. Now it is teaming
up with banks to offer the same service. FIS (FIS), a tech outfit that counts 14,000
financial institutions as clients, announced on Nov. 3 that it plans to integrate PayPal's
technology into its online banking platform. "We found out that [banks] want to
collaborate more than ever," says PayPal President Scott Thompson.

HACKER HEAVEN?
Here's how these digital cash transfers work. Sign up for a service through your bank or
another provider. Enter an e-mail address or phone number to send money to anyone you
know. Your bank's person-to-person payment system will be integrated with your regular
online banking, and the funds will be debited from your account. At the other end, the
recipient may get the cash deposited directly into an account or have it posted to an
existing credit card or a prepaid card. Mostly likely, banks will make money by charging
senders a nominal fee (25 cents, say, for a domestic transfer).
What about security, you ask? "Banking on the mobile phone is relatively safe," says
Robert Vamosi, an analyst on security, risk, and fraud at Javelin Strategy & Research. In
fact, says Vamosi, mobile banking is currently more secure than online banking
because cellular networks are tough to hack into.
With many of these new offers set to launch next year, the big question is who will gain
critical mass quickly. Says Jim Bruene, editor of trade publication Online Banking Report:
"Whoever can make mobile payments as simple as sending a text message is going to
win."
Feldman is an associate editor with BusinessWeek in New York.

Analysis

High Performance Service Innovation

• Adaption and embracing new technology helps to sustain the market. All else being
equal, a company’s goal is to meet customer’s expectations better than its
competitors. Given the fact that adequate service expectations change rapidly in
turbulent market, the service provider has to keep offering something extra to
customers.

• By offering this solution, customers will be able to transfer money in more secure,
fast and even when they are on the go.

25 | P a g e
NSE's new MF service system from Nov 30
24 Nov 2009, 2242 hrs IST, PTI
(http://economictimes.indiatimes.com/articleshow/5265292.cms?frm=mailtofriend )

MUMBAI: The National Stock Exchange on Tuesday said it is proposing to introduce a new
mutual fund service system (MFSS), which will enable its members to use the existing
infrastructure for transaction in MF schemes.

The NSE proposes to introduce new MFSS for facilitating transaction in MF schemes
through the stock exchange infrastructure, the NSE said in a circular, adding the new
MFSS will commence from November 30. Market regulator SEBI, in a recent circular, gave
its approval for facilitating transactions in MF schemes through the stock exchange
infrastructure.

"The infrastructure that already exists for the secondary market transactions through the
stock exchanges with its reach to over 1,500 towns and cities, through over two lakh
stock exchange terminals can be used for facilitating transactions in mutual fund
schemes," SEBI had said.

The stock exchange mechanism would also extend the present convenience available to
secondary market investors to mutual fund investors, the market regulator had said. The
existing MF scheme, introduced in December 2000, will be substituted with the new
MFSS, the exchange added.

26 | P a g e
 Analysis

Customers Expectation of Services (Ideal -

Personal need) + High performance Service Innovation

• The categary of customer’s service expectation is desired and ideal, by offering the
MFSS, government is meeting with this expectations. The same will be called
‘lasting service intensifier’ as it is been derived from existing service offerings.

• Effective service standards are defined in very specific way that enabler the
provider to understand what they are being asked to deliver.

27 | P a g e
 Customer Value Table

Benefits Cost

Product Money

Service Time

Image Efforts

Availability Risk

CM opens AC bus service with automated ticketing

The Times of India

28 | P a g e
TNN 25 November 2009, 02:34am IST|
(http://timesofindia.indiatimes.com/articleshow/5265596.cms?frm=mailtofriend )

NEW DELHI: Chief Minister Sheila Dikshit on Tuesday, inaugurated the 28-km long, air
conditioned Dwarka bus service along with the Automated Fare Collection
System (AFCS). A new bus terminal also became operational in the sub-city. The
Dwarka Circular Sewa is the first AC circular bus service in the country.

Flagging off the services, Dikshit congratulated Dwarka residents on commissioning of a

new bus depot, constructed on about five acres of land, and the bus service. Buses
running on the Dwarka Circular Sewa will cover all the sectors in the subcity and each of
the buses will be equipped with AFCS. ‘‘This is just a pilot of AFCS, which will be
introduced in other buses and integrated with Delhi Metro, once people get used to it,’’
Dikshit said.

Area residents can buy smart cards for a security deposit of Rs 50. Commuters will get a
discount of 10% on the fares when they use smart cards. Conductors will be present in
the buses initially. The AFCS has been introduced on a pilot basis on six DTC buses which
will run on the Dwarka Circular Sewa route. There are plans to extend it to other routes
like Mudrika, Outer Mudrika and BRT routes, and eventually to all the buses in the Capital.

The depot will cater to about 12,000 passengers per day, and the average daily earning is
estimated at Rs 2,20,000 with an earning per kilometre of Rs 25. The routes to be
operated from new Depot are RL-77, RL-75, Palam Coach, 724 Extn and Dwarka Circular.

‘‘The transport department will now commission one new depot every month. DTC has
decided to install 20,000 Smart Card machines in 10,000 buses in the future,’’ said
Arvinder Singh Lovely, transport minister.

Analysis

High Performance Service Innovation + Customer Defined Service Standards

• In order to organize commonwealth games better, many infrastructural measures

are being taken in Delhi by government.

• Because of the nature of the services, that they are process, and offered part by
part to people.
• Its likely that when the new service is being introduced, customer tend to be
interested in participation. The new automated face collection system would not
just give them a chance to participate, but also avails a world class and less
confusing facility.

29 | P a g e
Toyota to recall 110,000 trucks over corrosion concerns
25 Nov 2009, 1659 hrs IST, AGENCIES
(http://economictimes.indiatimes.com/articleshow/5268240.cms?frm=mailtofriend )

WASHINGTON: Japanese car giant Toyota has announced the recall of 110,000 of its pick
up trucks in the United States, amid concern over corrosion on the vehicle's frame.

The company, in a statement, warned owners in cold areas that road salt could corrode
parts of the frame, causing the spare wheel to come loose and damage to brake lines.
The defect is limited to the 2000 to 2003 models of the Toyota Tundra.

"The spare tire stowed under the truck bed may become separated from the rear cross-
member," the company said. "Spare tire separation will create a road hazard for following
vehicles and increase the likelihood of a crash.

"Toyota also warned that corrosion may affect a valve on the rear brake line. If this
occurs, it can lead to the loss of the rear brake circuits which will increase vehicle
stopping distances and the risk of a crash." Toyota is offering to fix the defect with
"a corrosion-resistant compound" or the replacement of affected parts.

Analysis

Service Recovery Effects

• An immediate action is appreciated in case of errors in service providing. By

recalling the trucks, Toyota has already taken the responsibility of mishap.

• The recall also stand for the adequate explanation for the failure. While the article
explains the nature of failure, it also suggests a recovery, and replacement of
affected parts.

30 | P a g e
Soon, raise a toast in the coffee shop
Devina Sengupta
Saturday, December 12, 2009 3:21 IST
DNA
Bangalore: Sipping wine or guzzling beer may soon be possible in the next-door coffee
shop. Barista Lavazza has inked a deal with Sula Wines and Fosters this
September under which the products of the two firms will be available in select Barista
outlets of the country.

Sanjay Coutinho, COO, Barista Lavazza, said select outlets in Bangalore and Mumbai will
serve wine and beer by March, 2010. Currently, only one Barista outlet in Delhi serves
alcoholic beverage but the firm plans to have 25 such outlets in the future.

"The licence fee is very high in Mumbai and Bangalore (around Rs 35 lakh) whereas in
Delhi it is far more affordable (around Rs 10-12 lakh). This, plus the early wrapping up of
the city are the hurdles faced by the firm," he said.

Recession proved beneficial for the coffee chain outlet which saw around 15% of the five-
star hotel customers walking into their outlets, compensating for any drop in their usual
customers. Barista Lavazza clocked revenue of Rs 150 crore in the calendar year 2008
and is looking at around Rs 225 crore in 2009.

For the next year, the company has a target of Rs 300 crore. It currently enjoys 25% of
the coffee chain retail market in India. Barista Lavazza also signed pan-India deals with oil
firms--HPCL, IOCL and BPCL-- since the firm plans to open up more outlets on highways in
2010. It has marked the Bangalore-Hosur, Delhi-Chandigarh, Delhi-Mathura, Delhi-Shimla
and Bangalore-Mysore highways for opening standalone cafes as well as those along with
the gas stations.

Once the manufacturing facility at Siruseri near Chennai becomes functional, the firm
plans to introduce coffee capsules on a larger scale in India. These capsules provide one
shot of coffee when inserted in the vending machines. Currently, they have to be
imported and consumer pays Rs 25 per capsule. Coutinho said that with manufacturing of
the capsules in India, the consumer would have to pay only Rs 8 for a capsule.

Lavazza is also setting sights on foreign markets like Nepal and China. Currently, it has
outlets in Sri Lanka, the Middle East and Bangladesh. It has tied up with Shatabdi
Express and now serves ice cream under Barista banner. The COO said that the dip
in coffee production has resulted in expenses for Barista Lavazza shooting up by 70%.

Analysis

High Performance Service Innovation

• Baristas are known for its coffee and great ambiance in India. By integrating range
of alcoholic beverages in its offering, the chain has introduced high performance
31 | P a g e
 service innovation. Although coffee cum alcohol outlets are quite common in
western countries, this will be one of its own kind in India. Costumers with different
tastes and likings would welcome this service with great interest.

• A tie-up with railways has also loosen the barrier for baristas in railway catering.
With very few but major players in this segment, barista has entered efficiently.

32 | P a g e
Wal-Mart Provides More Instant Gratification Via
Drive-Thrus
Posted by Sara Zucker
December 16, 2009 12:51 PM
(http://www.brandchannel.com/home/post/2009/12/16/Wal-Mart-Provides-More-Instant-
Gratification-Via-Dirve-Thrus.aspx )

Wal-Mart’s latest attempt at reeling in last-minute costumers this holiday season includes
a drive-thru.

Yes, a drive-thru. No, it does not serve French fries.

Facing fierce competition from Amazon, the retail giant now allows customers to pick up
online orders by driving up to select store locations, eliminating the pesky task of waiting
for items to be delivered.

“There was a time when the online and offline businesses were viewed as being
different,” said Walmart.com chief executive Raul Vazquez. “Now we are realizing that we
actually have a physical advantage thanks to our thousands of stores, and we can use it
to become No. 1 online.”

The Wall Street Journal reports that 40% of Wal-Mart’s online orders are being delivered
through its stores. Customers can shop online and have purchases shipped to a
local Wal-Mart where items can be picked up at a drive-thru window. Once in
the parking lot, however, Wal-Mart hopes that customers will be lured into its
buildings for additional purchases, though doing so would defeat the purpose
of avoiding lines and congestion.

For a brand now focused on going green with environmentally friendly packaging and
products on its shelves, this isn’t the most eco-friendly idea. A report from Carnegie
Mellon, Lawrence Berkeley National Laboratory, and Stanford University showed that
making an online purchase and having it shipped to your door uses fewer emissions than
picking it up in-store. Considering that walmart.com features more than 1.5 million
products, thousands of which are not available in stores, shoppers concerned about the
environment may want to carpool.

Analysis

Consumer Expectation of Services + Adjusting Capacity to meet with the

Demands

• Customers expect to avoid the crowd while shopping, especially in festival season.
The expectation can be rated as irrational, cause people tend to shop more during
this times.

33 | P a g e
 • By offering a drive through window, where customers can pick up their purchase
after making online shopping and payment, Wal-Mart has satisfied the expectation,
which falls under category of Desired Services (Personal needs).

• Also the placement of drive through window is such, that customers would be
tempted to park the vehicle and enter the store for its festive experience,
irrespective of their prior expectation.

McDonald's Free Wi-Fi Should Worry Starbucks

Posted by Stephanie Startz
December 16, 2009 05:26 PM
(http://www.brandchannel.com/home/post/2009/12/16/McDonalds-Free-Wi-Fi-Should-Worry-
Starbucks.aspx )

Want Wi-Fi with that?

McDonald’s plans to lift the $2.95 charge currently placed on two hours of wireless
Internet as a part of the fast food chain's overall rebranding effort to become a
“destination,” where customers hang out instead of dine and dash. McDonald’s will
continue its partnership with AT&T.

McDonald’s evolution into becoming a destination began this year with the premier of the
McCafe, McDonald’s premium coffee line, in direct competition with Starbucks. The chain
plans to expand its drink offerings in mid-2010 to include frappes and smoothies, further
enticing consumers into making McDonald’s, not Starbucks, the third place in their lives.

Starbucks currently charges $3.99 for two hours of Internet access and offers members
slight discounts based on accrual of points through their rewards program.

McDonald’s has slowly set out to update its stores with modern designs intended to
introduce a hip element to the chain and be more inviting to consumers.

But is the appeal of free Wi-Fi worth the stench of a deep fryer? While McDonald’s
abundance of chains makes it one of the most prevalent hot spots in the United States,
does it carry enough allure to attract the same audience as Starbucks? (Can you imagine
a future where fledging screenwriters populate McDonald’s and not Starbucks?)

Analysis

Managing Demand and Capacity + Pricing of Service

• As a part of ongoing competition among McCafe and Starbucks, the former is

planning to lift the almost nothing wi-fi charges. McCafe aspires to create an
atmosphere wherein customers would spend most of their time, either by chatting

34 | P a g e
 with friends, or corporate on a quickie break but have work on the mind all the
time. The step by reducing the gap, would avail McCafe a stronger base of loyal
customers and therefore, keep them ahead in competition.

Bharti Retail stops usage of plastic bags in Delhi NCR

stores
STAFF WRITER 19:57 HRS IST
(http://www.ptinews.com/news/430687_Bharti-Retail-stops-usage-of-plastic-bags-in-Delhi-
NCR-stores )

New Delhi, Dec 18 (PTI) Bharti Retail, part of Bharti Enterprises, today said it will replace
plastic bags with eco- friendly cloth options in all its Delhi NCR and Kurukshetra stores as
part of the company's 'green' initiative.

"Bharti Retail's 'easyday' stores have introduced cloth bags in all its stores across Delhi
and Kurukshetra and stopped using plastic bags in both cities. This initiative underscores
easyday?s commitment to sustainable and green business," the company said in a
statement.

Plastic bags will not be available in all easyday seven stores, including six in Delhi NCR
and one in Kurukshetra.

The company has also tied-up with Khoj, non-governmental organisation, for promoting
use of cloth bags, the statement added.

Bharti Retail operates around 50 easyday stores across Punjab, Haryana, Rajasthan, Uttar
Pradesh and Delhi NCR.

Analysis

Customer Expectations of Services – Desired Expectations (Personal need)

• By replacing plastic bags with cloth bags, Bharati retail organization is claiming the
tag of being environment friendly. Going green or being environment conscious is
high priority to global customer. Therefore, this measure would be better
appreciated by customers and the perception of the retail chain would be
satisfactory in their mind.

35 | P a g e
When Industries Care About Their Customers
By PHYLLIS KORKKI
The NewYork Times
Published: December 19, 2009
Some companies are the equivalent of fair-weather friends. They’re all smiles and
compliments when you buy their products or services but disappear or give you the
runaround when you have a problem.

As Forrester Research points out in a recent report, many customers value service over
price. It follows, then, that one of the best ways to ensure their loyalty is to resolve any
problems promptly, effectively and courteously.

Companies’ ability to pull this off appears to vary by industry. According to a survey by
Forrester, customers have the most faith in the ability of apparel companies, banks and
hotels to handle complaints. They have less confidence in Internet service providers,
computer companies and health insurers.

In fairness, a piece of clothing is much less complex than a computer or a health

insurance policy. But whatever the industry, there is always room for improvement, and
putting more resources into customer service may well yield higher revenue.

PHYLLIS KORKKI

36 | P a g e
Coffee cafes brew heady cocktails
Anshul Dhamija,
TNN 22 December 2009, 03:29am IST
(http://timesofindia.indiatimes.com/biz/india-business/Coffee-cafes-brew-heady-
cocktails/articleshow/5364086.cms )

BANGALORE: Say cheers to a new cafe culture. India’s cult cafe outlets are brewing a heady
mix of beverages, a wide range of alcoholic and non-alcoholic blended hot and cold coffees,
coffee beer, and coffee-based rum, whisky, vodka, gin, brandy and liqueurs.

Cafe Coffee Day, India’s largest cafe chain, is brewing what it calls a High Spirits menu at its
research and development centre in Chikmaglur. Its coffee beer has the same colour, froth,
texture, fizz and taste of regular beer. The only difference is that the beverage is non-
alcoholic and leaves a coffee aftertaste in your mouth. Cafe Coffee Day is also developing a
slew of other coffee-based spirits, and is planning new product offerings around these non-
alcoholic products.

Once these products are ready, the plan is to introduce them in the cafe chains premium
outlets like Cafe Coffee Day Square. Coffee World, run by Global Franchise Architects, had
last year introduced an item called coffee beer on a trial basis, which was a mix of coffee and
lemonade.

Industry observers say that such innovations by cafe chains are primarily done to break the
monotony of their product offerings, bring in newer customers, move towards international
practices, and redefine the cafe culture. A while ago some cafes had revamped their menus
to include lunch and dinner options, offering customers items like soups, salads, pastas and
biryani.

More recently, some cafes like CCD, particularly in their highway outlets, have started
offering breakfast meals including dosas. Barista has introduced a range of alcoholic coffee
liqueurs, which are a blend of espresso coffee with liqueurs and spirits, at its Defence Colony

37 | P a g e
outlet in New Delhi. The outlet has a liquor licence, and also serves wines, champagnes as
well as regular beers.

“We have applied for liquor licences, and by the middle of next year around 20 to 30 of our
up market outlets across India would serve liquor-based coffee products,” says Sanjay
Coutinho, COO of Barista Coffee Company. beveragewines

Analysis

Customers Expectation of Services (Desired services)

• Only after a week’s announcement by Barista offering alcoholic beverages in

outlet, CCD has come up with non-alcoholic coffee beer. A new technology and
recipe is being introduced in order to retain customers.

• By serving Indian fast food on highway joints, CCD has also acquainted with local
taste, which is more desired by customers travelling with traditional Indian families.

38 | P a g e
39 | P a g e