Service marketing report of Sushi Restaurant

Topics: Sushi, Japanese cuisine, Service system Pages: 22 (6651 words) Published: March 14, 2007
Executive SummaryTomodachi operates in the central business district with over 10 competitors around the vicinity. However, Tomodachi has been able to remain relatively competitive and active by maintaining its differential advantage as the only modern Japanese restaurant with a world class sushi train as well as an a la carte menu to cater for a full Japanese dining experience.

Our service report analyzes Tomodachi's overall service process, determining potential bottlenecks, critical incidents and recommending solutions accordingly to enhance quality of service, customer experience and subsequently customer retention.

Our service audit report revealed that there were several key issues that Tomodachi's management team should focus on. One of the key issues was that Tomodachi does not have integrated promotional strategies and their promotional efforts seemed to be targeting all customers. Hence, we suggest that promotional efforts should be targeted at special market segments. In addition, promotions emphasized more on pricing discounts, rather than accentuate the service experience and quality which is a far more sustainable form of competitive advantage.

Physical evidence also plays an important part as customers often use physical evidence as peripheral cues to their perceptions and expections of a service. It can also facilitate with the service delivery process and we have recommended ways in which Tomodachi can leverage on its physical evidence to enhance customer's service experience and reiterate their positioning strategy.

Finally, recommendations are provided for supply and demand management, internal marketing and improving customer quality, satisfaction and retention efforts which in turn may assist in more memorable and efficient service deliveries.

Table of Contents1.0 Situation Analysis52.0 Customer Analysis62.1 Perceived Risks82.2 Service Product Strategy93.0 Positioning Strategy124.0 Service Process & Blueprint135.0 Role of Physical Evidence196.0 Current Pricing Strategies297.0 Current Promotional Strategies308.0 Supply and Demand Management319.0 Analysis of Customer Quality, Satisfaction and Retention Efforts3410.0 Internal Marketing3511.0 Conclusion36References37Appendix391.0 Situation AnalysisTomodachi is located on level 3, Melbourne Central which is regarded as an inner-city precinct for shopping, eating & entertainment. This Japanese sushi train restaurant is situated in a very competitive environment, with numerous direct and indirect competitors located in Melbourne Central or outside on Swanston Street.

The main competitor of Tomodachi is O-Bento, which is located at Melbourne Central food Court, providing sushi, sashimi and Japanese hot food, similar to what Tomodachi offers. However, O-Bento competes at lower price and quicker food delivery. There are also several sushi bars on Swanston Street, which compete for the lunch hour crowd. A comprehensive Competitor Analysis is presented in Appendix 1.

Japanese restaurants have become a very important part of the culinary service sector in Australia. Based on our on-line research, there are over 150 Japanese style restaurants, cafe, and bars in Melbourne (MX, 2006). All these demonstrate that Japanese restaurants are very popular in Australia. Consumer's knowledge of Japanese food is now very extensive and consumers are becoming more demanding.

Sushi is one of the popular Japanese foods in Australia and is becoming a healthier food alternative due to its low fat content and minimal artificial seasoning (Tanaka, 2006). Melissa Stoppler, M.D.(2006) regards sushi as an important factor for healthy eating.

Consumers' decisions for healthier lifestyles usually stem from their values and beliefs, which they have built over time through exposures to the media.

Empirical studies have shown that females in their mid-30's and older make up the largest portion of the health food market (ABS, 2005). In Australia, woman make up more...

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Australian Bureau of Statistics(2005). 'Population by Age and Sex, Australian States and Territories '. Retrieved October 4, 2006, from!OpenDocumentCranage, D. and Mattila, A. S. (2005) 'The impact of choice on fairness in the context of service recovery '. The Journal of Services marketing. Santa Barbara: 2005. Vol. 19, Iss. 5; pg 271, 9 pgs.
Cybrzynski, G. (2006). 'It was an enjoyable afternoon, marred only by uncivil behavior at a restaurant '. Nation 's Restaurant News. New York:Aug 7, 2006. Vol. 40 Iss32; pg104.
Dickson, D., Ford, R. C., Laval, B. (2005). 'Managing Real and Virtual Waits in Hospitality and Service Organizations '. Cornell Hotel and Restaurant Administration Quaterly. Ithaca: Feb 2005. Vol. 46, Iss. 1; pg. 52, 17 pgs.
Moorthi, Y. L. R. (2002) 'An approach to branding services '. The Journal of Services Marketing. Santa Barbara: 2002. Vol.16, Iss. 2/3; pg 259, 16 pgs.
MX (2006), 'Dinners Like discounts '. Melbourne: MX News, pp. 5.
Stoppler, M. (2006). '10 Tips for Healthy Eating on the Run '. Retrieved October 13, 2006, from, A. (2006). 'Japanese Lifestyle '. Retrieved October 2, 2006, from
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