MK Restaurant: Services Marketing

Nature of the Business

7 P's Analysis

Swot Analysis

Pest Analysis

Case Questions

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Price

Price Cont.

Product

Place

• Hands on Thai dining experience
• Thai-style suki
• Tagline: “Make people feel warm”
• Consider their company a “warmth” service provider

• Service all provided within MK’s restaurant facilities:
• MK Gold
• Elegant dining atmosphere, soft music, dim lighting
• Decorating style matching that of a 5 star hotel

Three levels of restaurants:

• MK Gold
• Higher end=Higher prices
• MK Classic
• Original restaurant with everyday prices
• MK Trendy
• Younger generation=lower prices

MK Restaurant’s price reduction strategies:

• Monthly SOP (Standard Operation Procedure)
• Find areas to reduce costs, time, labour and waste

• Suggestions from all different levels of employees

MK Restaurant

MK Restaurant

Commercial

Largest Thai-owned chain restaurant

Promotion

Promotion Cont.

Place Cont.

252 outlets nationwide

• TV ads showed key messages:

• Fresh and best quality food ingredients
• Cleanliness of kitchens, dining areas, and restaurant supplies shown
• Healthy eating
• Showed feelings/emotions that eating at MK’s brings to consumers

• MK Classic
• Family style atmosphere, more of casual, in and out setting

• MK Trendy
• Flashier lighting, louder and “hipper” music

• WOM when restaurant was first started
• Radio commercials
• Television Ads
• Promoting company’s values (warmth provided by food and first class service)

Quickness, Cleanliness,

Quality, Service

People

Physical Evidence

Process Cont.

Process

• The restaurant and design
• Dining tables and chairs
• Suki-style table set up
• Menus
• Cleanliness of the restaurant

• Restaurant staff: Well-trained front stage staff
• Over 10,000+ employees undergo training three times a year
• Backstage: Cooks, managers, dishwashers, handymen
• Keep all aspects of the restaurant running smoothly
• Outside Company’s
• Employed through MK to help research and market
• Provide monthly reports on competition, and how the restaurant itself is doing

• Waiter turns on stove and provides instructions for the suki-style cooking
• Handles inquiries/issues that arise during cooking and consumption period
• Brings bill
• Customers expected to pay at the table
• Leave on their own time

• Customer can expect the following:
• No need to set reservations prior to arriving at MK Classic and Trendy, but MK Gold may require a reservation
• If available right away, waiter seats customers
• Waiter takes drink order, and delivers drinks
• Waiter takes food order
• Brings raw material to customers table

MK Blueprint

Strengths

Weaknesses

• Product innovations
• New product development.
• Effective marketing strategy.
• Awarded ISO 9001
• Efficient recruitment process and training.
• Quickness, Cleanliness, Quality and service.
• Brand extensions

• Customers unclear about role in delievery of service
• Suki pot instructions may not be understood
• Staff communicating with international customers

History

Began in 1962

Kindness,

generosity,

friendliness

Threats

Opportunities

• MK Restaurants has a number of big internaional competitors like KFC, Mcdonalds, Pizza Hut and Chesters Grill.
• New entrants into the global restaurant market (other franchises).
• Subsituties to dining out . For example: home cooking as self prepared meals are a generally cheaper option then eating out and a healthier alternative

• Continue brand extensions
• The number of varieties and new concepts of Thai food is on the increase. Therefore, this could be something MK restaurant could focus on to differentiate itself.

Q2. How would you describe

MK’s positioning?

Q 1.What are the four or five key lessons that any medium-to-high

contact service organisation

might learn from the success of MK Restaurant?

Q3. How does the success of

MK Restaurant relate to Heskett et al’s. (1994) Service profit

chain concept?

Q4. What challenges lie ahead for MK Restaurant

Economical Factors

Political factors

• GFC
• Natural disasters
• Cut back on luxuries
• Opting for cheaper alternatives
• High interest rates
• Inflation

• Stability of the government, government type, economic policy of the government, trade policy and events in surrounding countries.

Social factors

Technology factors

• Ipads, electronic alternatives, PDas being used to take and process orders.

• Price sensitive
• Value the social aspects of dining
• Shift towards healthier foods
• Less disposable income
• More convienance
• Brand recognition