Comprehensive Marketing Analysis: Services Industry Strategies

This report provides a comprehensive analysis of marketing strategies within the service industry. Section A focuses on a case study of Café Expresso, examining its target market (university students and high-income customers), service offerings (coffee blends and complementary services like books and games), service process diagram, and potential product line extensions. Section B delves into key marketing concepts, including the characteristics of service products (intangibility, non-ownership) and their application to examples like dry cleaners and beauty salons. The report then explores the promotion mix, using McCafe as an example, and discusses strategies for attracting customers. Finally, it examines the physical evidence marketing mix, using Ocean Park in Hong Kong as a case study, and compares it to competitors like Hong Kong Disneyland, highlighting the importance of physical elements in enhancing customer experience and gaining a competitive advantage.

RUNNING HEAD: MARKETING FOR SERVICES INDUSTRY
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Marketing for service industry

Marketing for service industry
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Section A
1. Target Market:
University Students
High end customers,
Higher income class group
2. Services that are provided by Café Expresso include providing blend of different coffee such
as Latte, cappuccino and many more. These are its core services that they provide to their
customers. On the other side, the company offer other complementary services that are physical
evidence includes addition of DVDs, books and games, music for customers to improve their
experience with the organization. With that customers are experiencing not only services and
products but also perceive this restaurant as a relaxation point. Further, in order to differentiate
itself from other competitors those are Starbucks and Pacific Coffee, Café Expresso import
coffee beans from Brazil in order to get competitive advantage and use innovative services and
loyalty programs in order to attract more customers.
3.
Decision Point or
Service Station or
Service Staff
(Café Expresso)
Cashier
QueueQueueQueue
Decision Point or
Service Station or
Service Staff
(Café Expresso)

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From the above service process diagram, it is seen that Café Expresso offers quick services to its
customers as they made two service counters one for walk in people and one for people who paid
online and collecting their order from the outlet. The one who are walk in customers firstly go to
cashier and get a ticket and after waiting for sometime they get their order from service station
when their number or name is called. On the other side, in order to be more convenience for
online customers second counter is available where people directly go and show their online
receipt and collect their order with least waiting time.
4. At present Café Expresso is offering comfortable and pleasant environment to its customers
with different range and type of coffee at the one spot. But in order to attract more customers,
Peter is thinking to extend its product portfolio and for that he wants to enter into the fast food
segment and wants to offer sandwiches, cupcake and salads in the café. And for that he should
firstly expand its target market that includes nearby trading companies, banks and office
employees so that the company can improve its market share and can compete with the biggedst
players in the market such as Starbucks.
The product line extension that Peter is going to do help him to not only target those customers
that wants coffee but along with that he can target office employees, banks and other nearby
professionals. This extension prove to be beneficial for Peter in term of revenues and in term of
market share.
Walk in customer Walk in customers
that paid online

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Section B
Q.1
A. “Service is borrowed rather than owned”
“Service is taken as the intangible product that involves a deed, a performance or efforts that
cannot be physically possessed”. The key characteristics of service products are non-ownership
and intangibility. These two characteristics can be better understood with the help of an example
of airline industry, in this a customer book a flight ticket take experience in return that includes;
the aero plane itself, the meals and drinks and the seat occupancy all these things are termed as
tangible aspects of air travel products. However, the core benefit of purchasing air travel service
is intangible as no customer can have possession on services as they are intangible.
It is easy for customer to identify which products are tangible and which are intangible. Some of
characteristics of service products are non-possession, and non-ownership. With the air travel
example it is justified that these services are used rather than owned. Services are characterized
on the basis of four aspects that are variability, intangibility, perishability and inseparability.
Hence, it can be said that services are not owned as there is no possession on anything it can be
used by people and it can be measured considering the experience or satisfaction that customer
get.
B. Similarities and Difference between dry clean store and beauty salon
Similarities: Dry clean store offers services related to washing clothes and ironing clothes.
These are services that a dry clean store can provide to its customer in term of any monetary
value. On the other side, beauty salon services include hair color, relaxing, and curling and make
up essentials. Hence, both the categories are service providers and both possess characteristics
such as intangibility, inconsistency and inseparability. Hence, both of these services can only
be experienced and no ownership and possession can be gain on these services.
Differences: In dry clean services customization is not an option as each and every individual
get standardized experienced and charged same prices for the same services. But in the case of
beauty salon services customization of services play vital role as customers can get customized
solution and accordingly the service charged are levied. Such as in case of haircuts and coloring

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an individual who wants better services has to pay more charges. On the other side, skills are
important consideration in beauty salon services whereas in the case of dry clean services skills
are not that important because most of the work is done by using machines that require
standardization.
Hence, from the above examples of dry clean stores and beauty salon it can be said that both
these are considered as service products as both are related to providing better experience to
customer and satisfying customers with their services. The main difference that is identified in
both the services is standardization of service and customization of service and skilled required
performing services.
Q.2 Promotion Mix
Promotion mix in service industry is considered as the vital tool that helps in attracting more
customers for service providers. Promotion mix includes use of different method of
communication whether direct or indirect to make people aware about the services provided by
the company.
In context to Mccafe, the company can use different promotion techniques in order to attract and
position itself as the healthier product provider in the market. Firstly, target audience need to be
set that can be people who are health conscious and want healthy products. Then for selling
nutrition meal sets and salad sets the company should opt for advertising on hospitals, boarding
on public places and target offices and youth and old people. At the initial stage sales
promotion techniques such as selling these meal set at discounted price. On the other side,
promotion campaign can be used on digital sites by using hashtag such as stay healthy, eat
healthy and be fit. These help in to attract more customers and prove to be less expensive
promotion method.
Hence, digital promotion campaign, advertising and sales promotion are the techniques that can
be used by the company in order to set and positioned itself as the healthy product brand in the
market.

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Q.3
Ocean Park is one of the destinations in Hong Kong that attract many tourists and people because
its services such as animal theme park, amusement park and marine mammal park. With that
theme park offers different services such as best rides, shows, attractions, refreshments,
restaurants and fireworks at night. The theme park basically defaulted in nation with physical
connection on all facilities it provides. The physical evidence in service marketing includes
addition of things that leads to better experience for customers and at the same time it helps in
attracting more customers so that revenues and satisfaction of customers can be increased.
Ocean Park covers more than 915,000 square meter of land in which different services are
offered to customers that includes roller coaster rides, live shows, gala of lights, attractions,
restaurants, dining reservation, shopping, food kiosks, and parent panel. Further, trained
employees and cast members are also been prime cause for attraction of people. All these
services and addition offered by Ocean Park give this destination a competitive advantage
against other theme parks in Hong Kong that are Hong Kong Disneyland and Wetland Park.
Hong Kong Disney land is major attraction sport for kids and is popular for Disney character. It
is pioneer in the segment of amusement park because of its kind services and experience. As
compare to other theme park this is quite attractive because of special events during Christmas
and Halloween. This park is positioned as luxury Entertainment Park with different categories
that includes super value, moderate, regular and high value. Hong Kong Disney land offers
restaurants, resort and website that are considered as the biggest physical presence as all are
offered under the brand name of Disney land. There are many other factors also that contribute in
improving customer experience while being in Hong Kong Disneyland.
From the comparison of physical evidence mix of Ocean Park Hong Kong with its competitors it
is identified that physical evidence can also be the strongest marketing mix in the service
industry that help in to gain competitive advantage. Ocean Park being the second largest
provide better experience to its customers and able to achieve its vision that is to “connect people
with nature”.