Service Blueprint Report: Dominos - Marketing Analysis and Strategies

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This report presents a detailed service blueprint analysis of Domino's, a leading fast-food chain. The report outlines the key elements of the service blueprint, including customer actions (entering, ordering, eating, and leaving), on-stage employee actions (greeting, taking orders, serving), and backstage employee actions (order preparation, management). It identifies physical evidence (Domino's box, desk counter, sauce bottle) and support processes. The analysis identifies three bottlenecks (long waiting times, unexpected demand, and technical delays) within the service delivery process and provides recommendations to enhance service quality and customer satisfaction. The report emphasizes the importance of customer experience, employee interactions, and the role of physical evidence in shaping customer perceptions and building brand loyalty. It also highlights the impact of service encounters on customer satisfaction and the need for effective management to ensure efficient service delivery.
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Running Head: SERVICE MARKETING 0
2018
Dominos
10/25/2018
Service marketing
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SERVICE MARKETING 1
Executive Summary
This report outlines the service blueprint of Dominos. Dominos is a leading fast-food chain
industry serving in many countries. The various elements of this service blueprint are onstage
employee actions, physical evidence, support processes, off stage employee action and
customer actions. The three bottlenecks is also identified in the service delivery process
depicted as F1, F2 and F3.
Several recommendations were also made to eliminate the failure in the service encounter
and create positive service delivery process.
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SERVICE MARKETING 2
Table of Contents
Introduction................................................................................................................................3
Section A................................................................................................................................3
Section B................................................................................................................................4
Section C................................................................................................................................5
Section D................................................................................................................................7
Section E................................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................12
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SERVICE MARKETING 3
Introduction
The concept of fast food was pop up during the 1920s. From that time, there is a continuous
rise in the international fast food chains (Paik and Choi, 2007). Many new businesses also
enter continuously in this industry due to its potentiality. In the present scenario, various
chains like Dominos, McDonald, Pizza Hut and Burger King are operating with their own
core competencies and have attained a percent of market share in the industry.
In this research, the service blueprint is taken as of the Dominos store, as Domino’s Pizza is
one of the international fast food chain serving with its major products such as Pizza, Pasta,
Chicken wings and Desserts. The company are serving almost 85 countries in the world with
having 1500 stores worldwide. The company is continuously evolving and with the digital
transformation, they also started online and mobile ordering services from 2007 (He, Zha and
Li, 2013).
The company uses lower price and extensive promotional strategy for gaining share in the
market. Considering service delivery model in dominos, there is a structured process which is
connected by various nodes such as staff, management and customers. These all nodes are
managed effectively by Dominos to creating a positive service encounter.
The various services chosen for the Dominos store includes customer actions, on-stage
employee actions and backstage employee actions. These services and action depict the
whole service process, which is delivered by the Dominos to the customer in the form of
product.
Section A
The service blueprint contains the customer journey as well as all of the interactions that
make that journey possible (Geum and Park, 2011). As per the various customer actions
mention into the blueprint, the most three customer actions are – Entering and ordering pizza,
eating pizza and leaving the store after successful consumption. From the perspective of a
customer, in any food chain store, these three actions will always be there for the successful
consumption of the desired food.
These actions are similar to the journal mapping and service innovation requires developing
new ways of value co-creation between customer and service organizations. From the past
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SERVICE MARKETING 4
few years, the service environment has changed significantly and the customers should be
able to smoothly co-create their experience and also perceives service offerings as simple and
easy to use. In Dominos, customer experience is significantly important for adding and
differentiating value to organization offerings. For raising customer experience, customers
actions are co-created through all the interactions between the customer and the organization
and it can not be completely addressed by the service provider (Lee, Wang and Trappey,
2015). For e.g. when a customer comes for dinner in Dominos, his/her experience at the cafe
will result from the interaction with the physical environment, employees and the service
process but also from the interaction between the other customer and the customer. This
shows that customer can convert the value into use which is offered by Dominos in terms of
value proposition.
In terms of service experience, the customer's actions are critical because the customer
experience cannot be designed but services can be designed for the customer experience. This
means that a smooth experience for the customers can be created when a holistic service is
designed for them (Edvardsson, Enquist and Johnston, 2010).
For a successful service experience, the customer needs to enter into the Pizza for the
respective ordering of food as per his/her taste. As this will be starting point of the service
encounter from the respective side of Dominos. In this service encounter, as the customer is
eating the pizza, the store can raise experience at that time with the help of various physical
evidence so that makes the customer feel more satisfied and delight. In a service blueprint, a
customer action is the collection of all the activities that are performed by the customer
during the course of service delivery. The service encounter can again be raised when the
customer leaves the Dominos café as a new customer will enter for the new service
experience. In addition, for more effective service delivery, it is important that the customer,
as well as staff, interact with in the full space (Caru and Cova, 2015). This will not only raise
the customer service experience but also help Dominos in creating strong brand identity.
Section B
For a successful service experience, the major three on-stage employee actions are – Greeting
the customers with smile and take order, Giving menu and seats to the customer and serving
order. Customer perception of service depends on service encounter (Xu, Goedegebuure and
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SERVICE MARKETING 5
Van, 2007). The on-stage plays a crucial role in raising the quality of the service encounters,
and their behaviours and attitudes determine the customers’ perception of the service quality.
Customer satisfaction is also impacted by the quality of the interpersonal interactions
between the customer and the contact employee. As Dominos is a multinational food chain, it
becomes imperative to be taught their role in the process of service delivery as per the
company offerings. For delivering value promises to these customers, employee must possess
of the various abilities, skills, tools and motivation for the efficient delivery of the services. In
dominos, the staffs engage with the customers and create rapport so that to make a personal
connection. The main objective of the company behind this role is to increase customer
loyalty by converting switcher to hard-core loyal. There are various marketing practice and
the study of these practices leads the company to convert positive service encounter as it is
directly connected with the superior service quality (Wu and Liang, 2009).
In the respective front stage interactions, the service in dominos includes the face-to-face
interaction between the customer and staff. In this process, there are various queries from the
perspective of customers related to the product consumption, order delivery and also at the
time of paying the bill. This whole delivery process needs to be managed at full efficiency so
as to support the organization mission (Glushko and Tabas, 2009).
In all the three key aspects of the service encounter, the most important aspect will be the
delivering of the order on time for the successful service experience. The employee and the
manager in Dominos always try to shorten the time of order acquiring and service delivering.
This leads to getting the order ready to the customer in a short period of time.
In last, it can be said that the experience gained by the customers during the service encounter
will be very crucial for the Dominos store. In addition, consumer evaluation of the quality of
the service delivery is substantially predicted on those consumption experiences and this
makes convert the customer satisfaction in the customer loyalty, as there is a significant
relationship between the customer satisfaction and customer loyalty (Han and Ryu, 2009).
Section C
Physical evidence is the environment on which the service is delivered and where the
customer and the firm interact (Enache, 2011). In addition, any tangible commodity that
facilitates performance or communication of the service. In the service marketing mix also,
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SERVICE MARKETING 6
Physical evidence is an important element as it impacts the attitude, behaviour and emotion
of employees. It is also important in setting up loyal customer basis.
In dominos, the major three physical evidence that was taken is – Dominos Box, Desk
counter and Sauce Bottle. The ambience of Dominos is good enough to catch the people.
They provide good dining experience and high quality of atmosphere in terms of there
physical evidence. Dominos always try to upgrade with changing environment and
modernization is key of success factor of Dominos.
The first physical evidence that was taken is the Domino’s pizza or Zingy parcel box. This
corrugated box helps in delivering big chunk of food to happy customers. The box comes in a
marvel of minor but with well-formed proportions. These boxes are also designed for easier
recycling and are transformable into plates for more customer easiness. In addition, they can
also be ordered for very specific food transport situations. In Dominos, these boxes are an
attraction to the customers and that is why they are one of the most significant physical
evidence during the process of service encounter. Dominos also used various types and size
of boxes as per the different product and size.
The next physical evidence is the Desk counter taken as a physical evidence of customer. The
desk counter includes varieties of process and functions such as staff greeting, billing and
payment process, waiting order number display on the screen (González, 2012). This shows
that there are various tangible elements in the appearance of the facilities, equipment,
personnel and materials. This also draws a line of interaction and attraction for the customer,
which focus on the customer needs and the actions. Therefore, this physical evidence can be
said as centre of attraction for those customers who visit the café for the consumption of
Pizza or any other beverages.
Sauce bottle is another physical evidence taken in the Dominos which influence the customer
experience in a direct or indirect manner. This physical evidence is used with others and the
pizza serves by the Dominos. Customer always finds a sauce bottle in the store as without it
the pizza taste will not be that much good. This makes a strong customer perception that
he/she will always find the sauce bottle in the Dominos store.
Therefore, many services capes are purely functional but they do not shape customer
perception and behaviour intended by their creators, because customers often make creative
use of physical spaces and objects to suit their own purposes (Spielmann, Laroche and
Borges, 2012).
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Section D
It is a cause an effect diagram to analyse the potential cause of the problem. Dominos always
try to have customer satisfaction on priority and if there is any customer not satisfied, the
company research that what is the main cause of satisfaction (Yazdani and Tavakkoli, 2012).
These causes can be well explained with this diagram.
In Dominos, there are three bottlenecks identified between the cause and the unsatisfied
customer. These are also termed as F1, F2 and F3 in the service blueprint of Dominos. The
F1 is the long waiting time during the peak hours such as evening. F2 is the unexpected
demand due to unavailability of toppings and F3 is the delay in procedure in the production
of food due to any technical fault.
The first bottleneck (F1) is related to the cause of the peak hours, which results in the long
waiting time for the customers. Due to this cause, the time gap is increased between the
delivery of foods with the consumption by the customer. However, Dominos is known for its
Caus
e Unsatisfied
Customer
LONG
WAITING
TIME
THE TOPING
DEMAND BY
CUSTOMER
IS
UNAIVABLE
DELAY IN
PROCEDURE
DUE TO ANY
TECHNICAL
FAULT
PEAK HOURS
UNEXPECTED
DEMAND
PROCEDURE
F2
F1
F3
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SERVICE MARKETING 8
30 minutes delivery but this strategy is also impacted by many factors. This bottleneck in the
process of service encounter leaves the customer frustrations and satisfaction.
The second bottleneck (F2) is related to the cause of unexpected demand. This area of failure
can be caused due to number of reasons such as unavailability of toppings, vegetables. dough,
cheese inventory and bread. These items are supplementary which need to be an add-on to the
main products so that the taste can be enhanced of the final products. The cause of this
bottleneck can be any such as improper management of the inventory system, lack of
suppliers and staff misplacement. This area of failure can be proved as very risky situation for
the company as customer will not get the exact product they have pay for.
Procedure can be the next failure in the service process of Dominos. It is related to any
technical fault in the machinery, It systems, ordering procedure, etc. Most of the operations
and transactions are done in Dominos are based on computer systems and machinery (Allen,
McLees, Richardson and Waterford, 2015) and if this fails, the company need to bear serious
trouble.
Section E
Dominos is working very great so far but there are several recommendations, which help the
company to delivery positive service encounter and creates customer loyalty. The manager in
the Dominos stores should offer more compensation as it is directly related with attracting of
the repeat customers. The manager also starts many programs related to the empowerment
and training. They can also focus on increasing the efficiency of the operational systems by
improving the cycle time in the whole delivery process (Duflou et al, 2012).
For the above-mentioned bottleneck, the F1 area can be resolved if the company reduces
labour time in many areas such as handling of system, taking order, managing people, etc.
They can also invest and increase the numbers of stores so that to gain potential number of
customers. For the F2 area issue, this is the manager duty to maintain adequate inventories by
planning in advance. Every detail need to be recorded in the inventory system so that it will
also help them in forecasting for the future stock. The last bottleneck (F3) can be resolved if
the manager does timely maintenance of the systems and get the technology and machinery
updated market. This will not only increase operational efficiency but also creates strong
brand identity.
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SERVICE MARKETING 9
Conclusion
The success of Dominos in terms of providing services to the customers has cleared a solid
ground in the race of competitors and proved a significant point, the reason behind the no. 1
in terms of casual dining.
In dominos, service is an attitude. The employees are trained to make the customer feel
appreciated by delivering positive service encounter. The customers are treated with full
courtesy, respect and enthusiasm.
Dominos is known for its CHAMPS i.e. cleanliness, hospitability, accuracy, maintenance,
product and speed.
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References
Allen, M., McLees, J., Richardson, C. and Waterford, D. (2015) Project Planning and Best
Practices. Journal of Information Technology and Economic Development, 6(1), p.1.
Caru, A. and Cova, B. (2015) Co-creating the collective service experience. Journal of
service Management, 26(2), pp.276-294.
Duflou, J.R., Sutherland, J.W., Dornfeld, D., Herrmann, C., Jeswiet, J., Kara, S., Hauschild,
M. and Kellens, K. (2012) Towards energy and resource efficient manufacturing: A processes
and systems approach. CIRP Annals-Manufacturing Technology, 61(2), pp.587-609.
Edvardsson, B., Enquist, B. and Johnston, R. (2010) Design dimensions of experience rooms
for service test drives: case studies in several service contexts. Managing Service Quality: An
International Journal, 20(4), pp.312-327.
Enache, I.C. (2011) Marketing higher education using the 7 Ps framework. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V, 4(1), p.23.
Geum, Y. and Park, Y. (2011) Designing the sustainable product-service integration: a
product-service blueprint approach. Journal of Cleaner Production, 19(14), pp.1601-1614.
Glushko, R.J. and Tabas, L. (2009) Designing service systems by bridging the “front stage”
and “back stage”. Information Systems and E-Business Management, 7(4), pp.407-427.
González, A. (2012) Effective management of high-use/high-demand space using restaurant-
style pagers. Journal of Access Services, 9(2), pp.51-65.
Han, H. and Ryu, K. (2009) The roles of the physical environment, price perception, and
customer satisfaction in determining customer loyalty in the restaurant industry. Journal of
hospitality & tourism research, 33(4), pp.487-510.
He, W., Zha, S. and Li, L. (2013) Social media competitive analysis and text mining: A case
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472.
Lee, C.H., Wang, Y.H. and Trappey, A.J. (2015) Service design for intelligent parking based
on theory of inventive problem solving and service blueprint. Advanced Engineering
Informatics, 29(3), pp.295-306.
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SERVICE MARKETING 11
Paik, Y. and Choi, D.Y. (2007) Control, autonomy and collaboration in the fast food industry:
a comparative study between domestic and international franchising. International Small
Business Journal, 25(5), pp.539-562.
Spielmann, N., Laroche, M. and Borges, A. (2012) How service seasons the experience:
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Management, 31(2), pp.360-368.
Wu, C.H.J. and Liang, R.D. (2009) Effect of experiential value on customer satisfaction with
service encounters in luxury-hotel restaurants. International Journal of Hospitality
Management, 28(4), pp.586-593.
Xu, Y., Goedegebuure, R. and Van der Heijden, B. (2007) Customer perception, customer
satisfaction, and customer loyalty within Chinese securities business: towards a mediation
model for predicting customer behavior. Journal of relationship marketing, 5(4), pp.79-104.
Yazdani, A.A. and Tavakkoli-Moghaddam, R. (2012) Integration of the fish bone diagram,
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