SERVICE MARKETING : POSITION MAPPING -

RESTAURANTS

Rohan Solanki 1310

Market Segmentation

Before going to Position Mapping, it is essential to understand market segmentation.

Firms vary widely in ability to serve different types of customers.

Adopt strategies of market segmentation, identifying those parts of the market that can be serve best.

A market segment is composed of a group of buyers sharing common:

Characteristics Needs Purchasing behavior Consumption patterns

Within segments, they are as similar as possible. Between segments, they are as dissimilar as possible.

Consumer Preferences

Consumers usually choose between alternative service offerings based on their perceived differences.

Attributes that distinguish competing services from one another are not necessarily the most important ones.

Determinant attributes determine buyers’ choices between competing alternatives

Service characteristics are important to purchasers.

Customers see significant differences between competing alternatives on these attributes

Position Mapping

It is a great tool to visualize competitive positioning and map developments of services

Useful way to represent consumer perceptions of alternative products graphically. Consumer preferences Consumer buying behavior

Typically confined to two attributes, but 3-D models can be used to portray positions on three attributes simultaneously.

Also known as perceptual maps (built on preference maps)

Information about a product can be obtained from market data, derived from ratings by representative consumers, or both.

Mapping of Restaurants : Service – Price Relationship

Expensive

BhagatchandTarachandHigh

Service Moderate Service

Tunga

Four Points : Sheraton

Navratna

Yummy Dosa

Mainland China

Health

Less Expensive

Service – Price Relationship

Looking at the figure. we can conclude that how restaurants set their prices. Mainland China, Tunga and Four Points – Sheraton

provide premium services to its customers. Thus charging a premium price.

Whereas Health, Bhagatchand Tarachand and Navratna provide moderate services. This change in the quality if service affects their pricing. As customers purchasing a service would prefer to pay a premium for high quality of service.

In case of Yummy Dosa, it is a fast food center where the service offered is just satisfactory and the charges levied on the customers are also less expensive.

Mapping of Restaurants :Location – Quality of service

High Service

BhagatchandTarachand

CorporateOffices

Inner Suburbs Colleges

TungaFour Points : Sheraton

Navratna

Yummy Dosa

Mainland China

Health

Moderate Service

Station/Malls

Location – Quality of service Relationship

The above figure gives us a brief idea about the location – quality of service relationship. It also briefly justifies service – price relationship. As we can see, Mainland China, Tunga and Four Points –

Sheraton are located close to corporate offices and malls, there may be a high intake of consumers looking for quality food and services.

Whereas Health, Yummy Dosa are located close to colleges and inner suburbs. Thus the spending power of the consumer there is slighly lower then that of those near corporate offices and malls.

Bhagatchand Tarachand and Navratna are restaurants that provide moderate services and charge affordable prices as they are accessible from various areas.

Importance of Position Mapping Positioning maps display relative performance of

competing firms on key attributes

Research provides inputs to development of positioning maps—challenge is to ensure that

Attributes employed in maps are important to target segments

Performance of individual firms on each attribute accurately reflects perceptions of customers in target segments

Predictions can be made of how positions may change in light of future developments. The next figure will explain how new developments would affect the current positioning.

New establishment : Barbeque NationEffect on Service – Price Mapping.

Expensive

BhagatchandTarachandHigh

Service Moderate Service

Tunga

Four Points : Sheraton

Navratna

Yummy Dosa

Mainland China

Health

Less Expensive

Barbeque Nation

Action?

New establishment : Barbeque NationEffect on Loaction – Quality of service Mapping.

High Service

BhagatchandTarachand

CorporateOffices

Inner Suburbs Colleges

TungaFour Points : Sheraton

Navratna

Yummy Dosa

Mainland China

Health

Moderate Service

Station/Malls

Barbeque Nation

No Action?

Action?

In the above figures we can see, how a new establishment would affect the positioning of their competitors.

In the first figure, based upon price – service. Mainland China was being affected with the opening of a new establishment.

Whereas in the second figure, based upon location. Bhagatchand Tarachand would be the restaurant that will be significantly affected due to opening of Barbeque Nation.

Position Mapping is an important step in determining the competitiveness in service industry. Specially an industry like the Food and Beverage industry. The service can only be measured in the satisfaction of customers and their loyalty towards the firm.

THANK YOU…