Questions 1 What would be some moments of truth in GoldStars

Questions:

1. What would be some \"moments of truth\" in GoldStar’s environment?

2. What implications would the segmentation of Gold Star’s customers have on their customer-focused practices? Can you think of a different customer segmentation that may be helpful for GoldStar to consider? Explain.

3. What types of approaches should Gold Star consider to listen and learn from different customer segments? Explain why those types of approaches are most appropriate. Hint: A savvy student would refer to the approaches mentioned in the text. Of course this hint applies to most assignments and questions.

4. Customer surveys are sometimes quite useful but sometimes useless, or even destructive. For example, people often complete a survey without really thinking about the responses. People sometimes mark everything perfect because a salesperson or service manager asked them to do so? People sometimes mark several responses low because their specific dissatisfaction has spilled over to a general dissatisfaction. Could a customer satisfaction survey, if conducted improperly or interpreted incorrectly, contribute to poor product or service quality? Explain.

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GOLD STAR CHILI: CUSTOMER AND MARKET KNOWLEDGE

Gold Star Chili, Inc., based in Cincinnati, Ohio, was founded in 1965 as a family-owned system of franchised and company-owned restaurants. Gold Star operates over 100 regional locations (most of which are franchised, with a few being company restaurants or are co-owned). The Gold Star menu is based on a unique, “Cincinnati-style” chili recipe, flavored with a proprietary blend of spices from around the world. The chili is prepared in a central commissary, designed to reduce equipment needs at individual restaurants, pro-mote consistency, and reduce labor costs. Most locations have both in-store dining and a drive-through. Gold Star operates in a highly competitive market against other multilocation chili firms and traditional fast-food competitors such as McDonald’s, Taco Bell, and Kentucky Fried Chicken. It trails its major competitor, Skyline, which has a larger advertising budget, in market share. Gold Star Chili is an active participant with the Cincinnati Restaurant Association and the National Restaurant Association. These connections help maintain awareness of business trends, and advances in new technology. Changing business needs are assessed by reviewing the annual reports of competing restaurants, and an annual market research study that permits benchmarking against the restaurant/convenience food industry in general.

Gold Star Chili defines two key customer groups: direct customers who use Gold Star products and services, and indirect customers with whom Gold Star has other relationships. Direct customers are divided into six customer segments, determined by product use: restaurant customers, franchisees, franchise applicants, retail customers, retail wholesalers, and mail-order customers. Indirect customers include product suppliers, service suppliers, co-packers, brokers/consultants, shareholders, and regulatory agencies.

Gold Star’s mission is to create lasting relation-ships based upon respect, trust, and support given to customers. More than 70 percent of customers eat in a Gold Star restaurant at least once a month, and 20 to30 percent eat at least once per week. The loyalty of the customer base permits servers and store managers to get to know customers personally and learn much about consumer needs.

Franchisees are attracted by the relatively low investment required to join the Gold Star family of restaurants, the opportunity to operate a profitable business, and to benefit from the strong brand equity built into the Gold Star name. All department heads treat franchisees as internal customers, and have signed a pledge guaranteeing to return calls within 24 hours. If a franchisee reports a problem with product quality, Gold Star often hand-delivers replacement product the same day. Many franchisees build relationships through local store marketing. Many owner/managers are active in the community with sponsorships of teams or school programs. Gold Star provides owners with school achievement awards they can distribute to local schools.

Visit the company’s website at www.goldstarchili.com to gain a perspective about the company, its menu, activities, and culture. Click the “About Us” link to read about the history and mission of the company. Using the information provided in the case and concepts developed in this chapter, answer the following:

Solution

Regarding Gold Star Environment :

1. The \'\'moments of truth\'\' are numerous some of them are detailed below:

a). First Impression : It is important to club success because of Guests\' positive experiences and observations determine whether they will return and become member of the said club.

- Greet each guest at the entrance and introduce courteously

- Name Tag provision

- Professional looking meeting room set up

-invitation to join as member.

b) Membership Orientation: These includes

- Induct new members formally and assigning a mentor for one -to-one assistance, discussing how to educational program helps develop SPEAKING and leadership skills etc.

c) Fellowship, Variety and communication :

The Club retains members by providing a fun , friendly and supportively environment that encourages enjoyable learning:

-Member greet guests and welcome note and the Vice President of Education (VPE) regularly plans enjoyable, dynamic educational programs with exiting , thought-providing themes, besides these the club enjoys regularly scheduled social events.

d) Program Planning and Meeting Organization:

When the Club planning the meetings , carefully, well prepared speakers and useful evaluators are being arranged and publicize the program and its agenda in advance.

e) Membership Strength: The club has enough members to provide leadership and fill meeting and committee assignments. that creates a lively , active club tat ultimately befits the existing members and draws new members.

f) Achievement Recognition :

The members to stay active by monitoring members\' progress toward goal , submitting completed award applications immediately, and consistently recognizing member achievement.

2. Segmentation of of Gold Star Customers :

The Gold Star have segmented its customers into the following groups:

1. Direct Customers - who are using its products and services - they are purchasing its products and its 70% customers visit to its restaurants visits once ore more in a month and 20 % customers at least two or three times once in a week and rest are eating more than that.

The loyalty of the customer helps the servers and stores / restaurant manager better and personally and about the customers need . This results in relationship building between the club and its customers.

The direct customers are subdivided in 6 segments like 1. Restaurant Customers, 2. Franchises, 3. Franchisee Applicant , 4. Retail Customers, 5. Retail wholesalers and mail order customers.

The segments require customized services and the staffs are trained effectively to serve the requirement of the customers in each segments. These implicates better customer service as per their segmentation.

The other segment includes Product suppliers, Service suppliers , co packers , brokers / consultants , shareholders and regulatory agencies.

These are in true sense not customer at all , these are components to who are instrumental to improve and carry on the services to the direct customers of this club. These are mainly Vendors and stake holders and the Government itself. The better understanding , compliance and rewarding to its stakeholders are the backbone of the club and ultimately results to better service to the customers. Unless a vendor supplied the inputs, the club will not able to serve foods according to its menu.

3. The approaches should be considered adopted :

a) Feed back Form : The club will provide a feedback form which generally include a courteous questions how the customers feels and what are the improvement Proposals / Adaptation could be made to better the services. The betterment of service has no end and virtually it is infinite.

Secondly : The club will employ educated and trained and best groomed female interviewer to take note of satisfaction, problems perceived by the them and the note of improvement. The feedback shall be summarized on monthly basis and common feasible solution will be tailored and presented before the President / CEO of the club for implementation

The customer survey are very much useful for betterment of service and regarded as a boon of leadership in service and product market. However , some of these are showing no positive signal and it is not more than a mere statement which has no signaling direction. The Club simultaneously employ the market research specialists and collect the information of the co runners of the club and restaurants in that area in which the Gold star operates.

Business / corporate intelligence may also be employed to know the future plan of the other clubs / restaurants within that area and other parts of the developed countries. Best practice of club may be ascertained in this way and employed in a meaningful way.

4. Yes, I agree partially with this statement that people sometimes gives erroneous comments and answers to the surveyors. These will don nothing more than harms. So , besides the customer survey which is taken personally , the club will seek the hotel journals and rating made by them, newspaper comments , channel surveys so it can be compared externally what is called external comparison of organization to evaluate the performance of an organization whether its main mission to maximize its earning or maximization of the value to its stakeholders. The short cuts of cost reduction will not be resorted. The cost reduction drive will benefit the club to serve more and more within the membership fee , but carefully employed without the deterioration of service quality.

If sufficient care will not be undertaken , it will deteriorate the long established reputation of the Club , so the feedback will be analyzed carefully and in case of need telephonic re interview be undertaken by the expert service managers.

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