Monday, January 21, 2013

Thesis: The Marketing Communication Strategy of Blue Bird Taxi... (Part 28)

To get a better understanding about this, please start reading from the first post of the series. 

THESIS: The Marketing Communication Strategy of Blue Bird Taxi To Maintain Market Leader Position After Using The Highest Tariff:

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(chapter IV continued)



5. People Analysis
The theory mentions that people are part of the services mix. People include staff, customer and frontline service personnel that play a part in the delivery of service and influence the buyer’s perception. The staff involve is the customer service especially the call center staff of the company.

Based on the findings on the internet, BBGT call center has won CCSEI 2009 call center awards as the first position with a good index while Express was the fourth position. In terms of customer, there are more people recommending BBGT through word of mouth then Express taxi. In terms of front liner service, BBGT drivers are known to be more trusted and polite compare to Express taxi as evident through the findings of IMAC awards where BBGT won first place in 2009 and 2010 over Express. The findings from the taxi user respondent interviewed also mentions BBGT drivers are better in the following findings:
“For safety, BBGT are better. Polite, BBGT are better. Comfort, BBGT are better” (Natalia, employee, question no.2)
“BBGT because is safe, phone orders are fast, polite drivers, and uses the shortest route. Express because at the time there weren’t any BBGT.” (Novita, freelance model, question no.2)
“BBGT if I want comfort and safety like when going home at night, very urgent matters like going to the airport and ordering by phone” (Maria, employee, question no.2)

The following is the author’s analysis. Base on the findings of the interview and document review, BBGT has a better people service than Express.

6. Process Analysis
Process is part of the services mix. This includes all the actual procedures and activity flows through which service is delivered. The organization’s operating system and the service delivery system are included in this process.

The findings from the interview with the BBG staff and drivers are as follows. One of the main differences in operation system of BBGT and Express is that BBGT use a commission system and Express uses the car ownership system. In BBGT, the drivers are required to achieve a daily minimum income sale of five hundred thousand rupiah per day and required to work 20 days a month. If the driver does not achieve minimum sales then they will be penalize through a point system and not penalize to pay cash or debt. If BBGT driver achieve more than five hundred thousand rupiah, they will get a commission. Car maintenance is taken cared by the company making BBGT cars well maintained. However there is high turnover rate of drivers because the point system is very strict. This makes BBGT hires a lot of new inexperience drivers which sometimes does not know the street route of Jakarta.

With Express taxi, the drivers are attached to a car ownership contract which requires them to achieve minimum sales per day. If they achieve more, then it becomes their bonus. If they don’t make the minimum in that day then they will have to make it up on the following day. The drivers are responsible for the car maintenance which makes Express vehicles not well maintained. The drivers that are behind their minimum have to work harder. Sometimes if the drivers are sick, they will ask someone from outside of the company to fill in as the substitute driver.

The author’s analysis based on the findings of the interview is that BBGT has a better process service than Express because BBGT system makes their driver not to burden by minimum sales thus making the drivers having a better attitude in servicing their customer.

7. Physical Evidence Analysis
This is the environment in which the service is delivered, as well as the boundary at which the company and the customer interact. It also includes the tangible aspects of delivering the services or communicating the service. In taxi services this includes the car and drivers.

Based on the observation, BBGT cars are clean and well maintain compare to Express vehicles such as not having a lot of scratches and dents. The BBGT drivers use a batik uniform and are better grooming then Express.

The author’s analysis based on the observation is that BBGT has better physical evidence

The marketing mix analysis summary of BBGT can be seen on Table 4.4.
Table 4.4
Summary of BBBT Marketing Mix Compared to Express Taxi
1.    Product Marketing Tools
Variety:
-       BBGT has only one type of regular taxi
-       Analysis BBGT variety is the same as Express taxi.
Quality
-       Includes the driver service, car maintenance, and call center or distribution order.
-       Analysis BBGT is better than Express taxi.
Design
-       BBGT & Express uses new Limo car but some old Limo too
-       Analysis BBGT is better than Express taxi.
Features
-       BBGT uses GPS on some cars, a call center ordering system, EDC payment on some taxis, voucher payments and SMS order
-       Express has 200 units taxi with EDC and 100 units with LCD TV.
-       Analysis BBGT is better than Express taxi.
Brand name
-       BBGT has Top Brand index of 59,9% & Express Group 7,5%
-       Analysis BBGT is better than Express taxi.
Packaging
-       BBGT has a clean design taxi.
-       Express taxi is clean but can have advertisement
Services
-       BBGT has won a service awards for accessibility, process, people, handling complaints, and quality output.
-       Express taxi doesn’t have any service awards
-       Analysis BBGT is better than Express taxi.
Warranties
-       BBGT has a better lot testimony regarding lost and found service and Express taxi has only one.
-       Analysis BBGT is better than Express taxi.
2.    Price Marketing Tools
List Price
-       BBGT uses the highest list price and Express taxi uses the lowest list price
-       Express has a better lower price.
Discounts         : n.a
Allowances       : n.a
Payment period: n.a
Credit terms:
-       BBGT uses the EDC payment system and credit vouchers
-       Some Express taxi uses the EDC
-       Analysis BBGT is better than Express taxi
3.    Place Marketing Tools
Channels:
-       BBGT does not use intermediaries instead uses call center and vouchers registration to sell directly
-       Express also does not use any intermediaries instead uses their call center to sell directly
-       Analysis BBGT is better than Express taxi
Coverage:
-       BBGT has 11000 taxis to cover Jakarta area
-       Express has 3000 taxi in Jakarta
-       Analysis BBGT is better than Express taxi
Assortments   : n.a
Locations:
-       BBGT has 250 outlets in Jakarta
-       Express has 15 outlets in Jakarta
-       Analysis BBGT is better than Express taxi
Inventory:
-       BBGT has an automated distribution system
-       Express has manual distribution system
-       Analysis BBGT is better than Express taxi
Transport:
-       BBGT delivers their order with automated distribution system
-       Express delivers their order with a manual distribution system
-       Analysis BBGT is better than Express taxi
4.    Promotion Marketing Tools
Advertising:
-       BBGT uses magazine, TV, radio, billboard, sponsorship
-       Express tries to copy BBGT promotions
Sales Promotions   : n.a.
Personal selling:
-       BBGT tries to increase credit voucher registration
-       Express does not use personal selling
Publicity:
-       BBGT uses publicity and has a division to manage publicity
-       Express uses publicity but does not have a specific division to manage publicity
Analysis of Promotion: neither company is better. Both are just different
5.    People
Staff:
-       BBGT Call Center won the call center award as no.1
-       Express no.4
-       Analysis BBGT is better than Express taxi
Customers:
-       BBGT customers recommends BBGT to others
-       Express customers recommendation are less
-       Analysis BBGT is better than Express taxi
Front-liners:
-       BBGT drivers are more safe and polite plus winning IMAC award 2009 & 2010
-       Express drivers are good but not better than BBGT. Express is no.2 in the IMAC award
-       Analysis BBGT is better
6.    Process
-       BBG uses a commission system for their drivers
-       Express uses a car ownership program
-       Analysis BBGT driver are better in servicing
7.    Physical Evidence
-       BBGT cars are well maintain and drivers are properly groom
-       Express cars has more scratches and dents and the drivers grooming are adequate
-       Analysis BBGT is better