CUSTOMER RELATIONSHIP MARKETING

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 Executive Summary
Organisations are required to have a good relationship with their customers in order to have a
greater advantage in the market. In this study, the acquisition and retention strategies of
Absolute Thai and its rivals, named, Street Thai. It has been observed that Absolute Thai
mainly focuses on social marketing while using sustainable loyalty to retain customers. A
comparative analysis of the three companies has been done as well. Finally,
recommendations are discussed that could improve the marketing and customer retaining
strategy of Absolute Thai.

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 Table of Contents
1. Introduction ............................................................................................................................ 5

2. Acquisition and retention strategy of Absolute Thai ............................................................. 5

2.1 Acquisition ....................................................................................................................... 5

2.1.1 Advertisements .......................................................................................................... 5

2.1.2 Promotions ................................................................................................................. 5

2.1.3 Loyalty programs or membership of Absolute Thai ................................................. 5

2.1.4 Events or Contest of Absolute Thai ........................................................................... 6

2.1.5 Gift cards or offers of Absolute Thai......................................................................... 6

2.2 Retention .......................................................................................................................... 6

2.2.1 Financial bond of Absolute Thai ............................................................................... 6

2.2.2 Social Bond of Absolute Thai ................................................................................... 6

2.2.3 Customization bond of Absolute Thai ....................................................................... 6

2.2.4 Structural bond of Absolute Thai .............................................................................. 7

3. Comparing the key strategies of Absolute Thai with its competitors .................................... 7

3.1 Acquisition ....................................................................................................................... 7

3.1.1 Advertisements .......................................................................................................... 7

3.1.2 Promotions ................................................................................................................. 7

3.1.3 Loyalty programs or membership of Absolute Thai and its competitors .................. 7

3.1.4 Contest or events of Absolute Thai and its competitors ............................................ 8

3.1.5 Gift cards or offers of Absolute Thai and its competitors ......................................... 8

3.2 Retention .......................................................................................................................... 8

3.2.1 Financial bond of Absolute Thai and its competitors ................................................ 8

3.2.2 Social Bond of Absolute Thai and its competitors .................................................... 8

2.2.3 Customization bond of Absolute Thai and its competitors ....................................... 8

3.2.4 Structural bond of Absolute Thai and its competitors ............................................... 8

4. Advantages and disadvantages of Absolute Thai .................................................................. 9

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5. Recommendation ................................................................................................................... 9

6. Conclusion ........................................................................................................................... 10

Reference List .......................................................................................................................... 11

Appendices ............................................................................................................................... 13

Appendix 1: Promotional activities ...................................................................................... 13

Appendix 2: Customer reviews of Absolute Thai.................................................................... 14

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1. Introduction
In the hospitality sector, the importance of customer relationship increases two-fold because
companies are able to make a profit due to their behaviour with their customers. In order to
keep a good relationship with their customers, companies use various acquisition and
retention strategies, while competing with their rivals. In this study, the retention and
acquisition strategy of the Malaysian restaurant, Absolute Thai has been discussed. The
company has deep roots in the Malaysian hospitality sector since its establishment in 1999.
The study further includes a comparative analysis of the strategies undertaken by Absolute
Thai with its rival companies like Street Thai.
2. Acquisition and retention strategy of Absolute Thai
2.1 Acquisition
2.1.1 Advertisements
In order to have more customers, Absolute Thai has selected a busy area in the street which
would make it visible to the customers. This gives the company an advantage, as the busy
area would contain more people (Absolutethai, 2019). The company uses two specific
elements, namely absolute Thai hot pot and street food and advertises it across their online
portal to lure customers. On the other hand, Amarin Heavenly Thai comprises of special Thai
dishes that are prepared by Thai crew. Hence, advertising authentic as well as savoury food
over the official portal has helped established business across Malaysia.
2.1.2 Promotions
As mentioned above, the company has used social media as their promotional ground. This
has helped the company to reach more people in a shorter period. This step has also benefited
the company to reduce the cost that is required for general marketing by forming a structure
in a proper area (Chan, 2016). The company is promoting through Meal Sets which includes
availability of different Thai cuisines with great deals and offers. Moreover, it has offered
upto 50% off on the main meal in the street food category and posted the same across their
Facebook and official website. (Refer to Appendix 1)
2.1.3 Loyalty programs or membership of Absolute Thai
The company provides rewards to its customers and provides discounts on their purchase of
the food items. The customers who have a membership are allowed to have a 10% discount
on non-alcoholic beverages, while a 20% discount on every food on the month of the
consumers' birth month (Absolutethai, 2019). Furthermore, the company allows gathering
points with each spent RM (Ringgit Malaysia).
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2.1.4 Events or Contest of Absolute Thai
The company organises events on special occasions such as Fathers’ Day and Mothers’ day,
which the consumer gets special food. The company also organises programs to celebrate the
partnership with its stakeholders (Absolutethai, 2019).
2.1.5 Gift cards or offers of Absolute Thai
Gift cards and offers are elements that are used for increasing sales, product development and
customer support (Dewnarain, 2019). The company has recently started providing its
customers with discount cards and points which can be used at the time of their visit at the
restaurants (Absolutethai, 2019). This shows that the company has a clear understanding of
the customers’ requirements using the Customer Lifetime Value.
2.2 Retention
2.2.1 Financial bond of Absolute Thai
The company has a lot of branches in the various parts of Malaysia, which allows it to have a
greater benefit from the consumers that are loyal to the company. Absolute Thai has strong
bonds with its suppliers who provide them with the products that are required for their dishes
across Mid Valley Megamall in Kuala Lumpur. An organisation would be able to have an
increased benefit if the financial bonds are stable (Diffley, 2018).
2.2.2 Social Bond of Absolute Thai
Absolute Thai has focussed on bonding with its customers through well behaved employees
and customers care service. The company all kinds of Thai dishes which range from hot pot
and street foods to casual dining and family dining. The wider range of options attracts more
customers which increase the social bonding of the company with its customers (Elena,
2016).
2.2.3 Customization bond of Absolute Thai
Absolute Thai uses sustainable loyalty in order to have a greater hold of its customers with its
services (Absolutethai, 2019). This method can be identified through the company’s discount
offers which allow an increase in the sales of their served items.

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 General
marketing

Social marketing

Sustainable
loyalty

Figure 1: Company Strategies

Source: (Absolutethai, 2019)
2.2.4 Structural bond of Absolute Thai
The structural bond of Absolute Thai is quite strong as it provides memberships that contain
point system. The customers who have membership are valued more by the company officials
as they provide the company with greater benefits. Additional discounts to the members
increase the structural bond of the company with its customers (Greve, 2018).
3. Comparing the key strategies of Absolute Thai with its competitors
3.1 Acquisition
3.1.1 Advertisements
Absolute Thai has many rivals in the market which includes Street Thai, who also provides
Thai food. Street Thai uses direct marketing strategy in order to get more customers. It has
been observed that all the companies believe in attracting customers through attractive
displays, which is an effective tactic (Hassan, 2015). However, this would result in high
competition among the three companies.
3.1.2 Promotions
It can be stated that Absolute Thai has greater advantage in the marketing field. In
comparison to that Street Thai has not gained enough market shares due to unavailability of
brand reputation throughout Malaysia.
3.1.3 Loyalty programs or membership of Absolute Thai and its competitors
Street Thai attracts customers through collaboration with food delivery websites such as Food
Panda. Absence of membership availability weakens the relationship of the companies with
their customers (Kangu, 2017). This condition would be positive for Absolute Thai, as weak
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bonds between the customers would increase its chances of gaining more customers in the
market.
3.1.4 Contest or events of Absolute Thai and its competitors
Street Thai provides live shows with every Fridays and Saturdays. This attracts more
customers to the restaurant as the company uses market segmentation strategy by allowing a
group of consumers who loves to hear music (Nyadzayo, 2016). Absolute Thai would be in
disadvantage as it, too, similar to Street Thai does not provide any entertainment program for
the customers.
3.1.5 Gift cards or offers of Absolute Thai and its competitors
None of the rivals of Absolute Thai uses gift cards or offers in their marketing process, which
provides an upper hand to the company (Rahimi, 2017). Absolute Thai provides its customers
the opportunity toi buy gift and greeyting cards for festivities and provide them with
additional discounts (Absolutethai, 2019). In comparison to that Street Thai offers exciting
packages to gain new customer base.
3.2 Retention
3.2.1 Financial bond of Absolute Thai and its competitors
The financial bonds of Street Thai are greater than Absolute Thai. As it does not have a larger
space, which decreases the number of consumer’s capacity in the restaurant, it also limits the
profit of the company (Rahimi, 2017). Absolute Thai is in greater advantage compared to the
other rivals, as it provides greater comforts in the restaurant with spacious areas.
3.2.2 Social Bond of Absolute Thai and its competitors
Street Thai uses live performances to increase social bonds with customers. Absolute Thai
has no such events or bonds that could be used for attracting more customers. Absolute Thai
has little benefits in this case, as it does not provide much entertainment programs to its
customers.
2.2.3 Customization bond of Absolute Thai and its competitors
Street Thai uses offensive marketing in order to gain more customers in the market while
giving tough competition to the rivals (Raji, 2017). Street Thai uses only street style food
products while Absolute Thai provides a mixture of both street and hot pot served food
thereby creating enhanced customization.
3.2.4 Structural bond of Absolute Thai and its competitors
As mentioned before, the structural front of the companies differentiates very much. Street
Thai has a big space where it can allow live bands to perform their piece. Absolute Thai has

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moderate spacing and provides its customers with good service which increases its advantage
in competition compared to Street Thai.
4. Advantages and disadvantages of Absolute Thai
Absolute Thai is at an advantage in the hospitality market because it has better measures to
reach and retain its customers. The better location allows the company to have a greater
advantage than its rival companies (Rashid, 2015). The location and advertisement strategies
are beneficial for the company’s promotion in the market. Street Thai, on the other hand,
even provides delivery options to the customers.

Social media
advertisement

Location

Membership policies

Figure 2: Advantages of the company

Source: (Chan, 2016)
Considering the advantages and disadvantages of the company, it can be stated that the
company would receive mixed reviews for its customers. The company must take note of the
ambience and quality of food, as many reviews would be based on that (Refer to Appendix
2). On the other hand, the membership and gift cards would help the company to have an
advantage in the competitive environment.
5. Recommendation
Considering the advantages and disadvantages of Absolute Thai in the market, it can be
stated that the company could gain more customers and build stronger relationships with its
customers through the following methods:
● Increasing the number of events and contests to build stronger relationships with
customers (Tseng, 2016)
● Introduce delivery services for the customers who are unable to visit the restaurants
● Collaborate with delivery services to increase its level of efficiency
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6. Conclusion
After analysing the above study, it can be stated that Absolute Thai is having an advantage in
the market. The company focuses on social marketing along with general marketing for
promoting its business. The company also uses sustainability loyalty to retain its customers.
Rival companies are far behind compared with the achievements of the company. However,
some of the methods that are used by Street Thai are beneficial for them and are creating
issues for the company. Therefore, in order to have a greater advantage, the company is
required to implement a few more strategies to leave the rivals far behind.

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Reference List
Absolutethai. (2019). absolutethai.com.my. Retrieved October 12, 2019, from About the
company: https://absolutethai.com.my/our-story
Almohaimmeed, B. M. (2017). Restaurant quality and customer satisfaction. International
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Chan, G. S. (2016). Exploration of customer compliant behavior toward asain full-service
restaurants. International Journal of Marketing Studies, 8 (2), 46.
Dewnarain, S. R. (2019). Social customer relationship management: An integrated conceptual
framework. Journal of Hospitality Marketing & Management, 28 (2), 172-188.
Diffley, S. M.-T. (2018). Examining social customer relationship management among Irish
hotels. International Journal of Contemporary Hospitality Management, 30 (2), 1072-
1091.
Eatatstreat. (2019). eatatstreat.com. Retrieved October 13, 2019, from About the company:
http://www.eatatstreat.com/our-story/
Elena, C. A. (2016). Social Media–A strategy in developing customer relationship
management. Procedia Economics and Finance, 39 (1), 785-790.
Greve, G. &. (2018). From Customer Relationship Management to Influencer Relationship
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Management, 1 (1), 80-91.
Hassan, R. S. (2015). Effect of customer relationship management on customer satisfaction.
Procedia economics and finance, 23 (1), 563-567.
Kangu, M. K. (2017). Technology infrastructure: a customer relationship management
dimension in maintaining customer loyalty. International Journal of Economics,
Commerce and Management, 5 (1), 50-70.
Nyadzayo, M. W. (2016). The antecedents of customer loyalty: A moderated mediation
model of customer relationship management quality and brand image. Journal of
Retailing and Consumer Services, 30 (1), 262-270.
Rahimi, R. &. (2017). Impact of customer relationship management on customer satisfaction:
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Rahimi, R. K. (2017). Customer relationship management research in tourism and hospitality:
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Raji, M. N. (2017). The effect of customer perceived value on customer satisfaction: A case
study of Malay upscale restaurants. Geografia-Malaysian Journal of Society and
Space, 12 (3), 100-120.
Rashid, I. M. (2015). The Impact Of Service Quality And Customer Satisfaction On
Customer's Loyalty: Evidence From Fast Food Restaurant Of Malaysia. International
Journal of Information, Business and Management, 7 (4), 201.
Restauranterawan. (2019). restauranterawan.com.my. Retrieved October 12, 2019, from
About the company: http://restauranterawan.com.my/#about
Ritter, T. &. (2018). Multidexterity in customer relationship management: Managerial
implications and a research agenda. Industrial Marketing Management, 69 (1), 74-79.
Tseng, S. M. (2016). Knowledge management capability, customer relationship management,
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Appendices

Appendix 1: Promotional activities

(https://www.syioknya.com/DealList/Absolute%2BThai)

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Appendix 2: Customer reviews of Absolute Thai

(Source: Tripadvisor, 2015)

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