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1、Services Marketing:People,Technology,Strategy (8th edition,2016)Page 1 of 7 CASE 6 KIWI EXPERIENCE OVERVIEW Kiwi Experience(KE)is an adventure transport network formed in December 1988 by three partners.They recently celebrated their 28th birthday,and more than 400,000 passengers have now had a KE“e
2、xperience”.KE is a customer-centric adventure operator that strives to pass onto their customers one of the best moments spent in their lifetime.KE zeroes in to some of the primary/golden rules of business endearing,i.e.,innovation,word-of-mouth advertising,package customization specifically in defi
3、ning its target market,tie-ups for discounts and privileges with parties of relevance and interest,strategic recruitment and selection,customer engagement,and responding to their complaints,if any.Apart from all the niches KE has been engrossed with,one among them is a way too beyond and perfect exa
4、mple of one of its kind,i.e.,every single staff has a role to play with when it comes to interacting with the customers;defying the common myth that only marketing people are the ones who act as brand ambassadors to any company.KE believes that every working member of the company irrespective of his
5、 profile(HR,Finance,Purchase,Admin,etc.)should get chance to meet their customers(through BBQs,etc.)and get to know who their customers are and how they feel about the company they are working with._ 2016 Mark Colgate TEACHING OBJECTIVES Services Marketing:People,Technology,Strategy (8th edition,201
6、6)Page 2 of 7 1.To introduce the concept of business sustenance and profitability through strategic planning and implementation.2.To observe how the model of being“customer-centric”can win new customers throughout,in the long run.3.To develop the insight behind the socializing of in-house employees
7、like accountant and other staffs with customers.4.To understand the process of devising recruitment and selection procedural for specific division of employees.5.To understand the role of culture and leadership in the success of the company.STUDY QUESTIONS 1.How does Kiwi Experience maintain a conti
8、nual customer focus?2.What role does culture and leadership play in the success of Kiwi Experience?3.Brainstorm as to how other service companies might get customers to pay a more active role(rather than passive)in the service experience.ANALYSIS Services Marketing:People,Technology,Strategy (8th ed
9、ition,2016)Page 3 of 7 1.How does KE maintain a continual customer focus?KE has a select class of specifically target customers in the age group of 18 to 35 years.Knowing exactly who their customers were was half the battle won.KE had been successful in getting through the minds of these categorical
10、 customers and chalking out their psyche before they started their tour.KE ensured the overseas prospects(as they form the bulk part of their business)are well-informed through placing leaflets in backpackers and youth hostels located at commonly visited destinations that backpackers visit before th
11、ey come to New Zealand,such as Hawaii,Sydney,Bangkok and Fiji.Once the backpackers were in New Zealand,KE used people called“street fighters”backpackers who handed out brochures at railway terminals and bus stations throughout the gateway cities of Auckland and Christchurch.They also spread the word
12、 through backpacker hostels.KE preferred recruiting backpackers who have had the Experience as they were more informed,motivated and credible communicators who could sell the KE service better than anyone else.KE,it seemed,really did fight for every customer they could get.KE also created their own
13、propaganda letters called“Bullsheets”,which they sent to their major booking agents in New Zealand.This move enabled agents to be better informed about the service KE offered.Finally,KE tried to ensure their service was mentioned in popular travel guides such as Lonely Planet,which was widely read b
14、y backpackers.Market research has shown the interaction between the customers on the bus was the second most important part of a KE trip.Backpackers generally enjoyed meeting other like-minded people,which was the nature of their trip.KE did several things to ensure they achieved the correct custome
15、r mix on the buses,and that customers interacted well together.To avoid any negative customer experience,KE did not hesitate to board-off(with full refund)any customer who failed to be part of the KE engagement and might act as a threat to others enjoyment.The driver encouraged social interaction be
16、tween customers on the bus.This enabled different customers to meet each other and form bonds and friendships at an early stage within the trip.This may increase the positive experiences customers have on their bus,which should positively impact on the impression customers have on the overall trip.T
17、he Services Marketing:People,Technology,Strategy (8th edition,2016)Page 4 of 7 drivers usually encouraged interaction through group meals and social activities in the evening,such as fancy dress competitions.Also,the flexibility KE provided to its customers in getting off from the bus wherever they
18、liked and could again use the commuting services as long as they remained under validity is also attractive to its customers.Apart from being concerned about expenses incurred on tickets(as they devised value-for-money tours),one of KEs major appeals was the enormous amount of paid excursions and ac
19、tivities that were on offer.From swimming with dolphins to aerobatic flights,the list was endless.By purchasing a KE bus ticket,a passenger was also entitled to discounts on many activities throughout New Zealand.This was one way that KE attempted to exceed the expectations customers may have,even b
20、efore the start of the trip.Secondly,backpackers were usually adventurers who were looking for excitement and activities that would challenge them.By offering these activities,KE was fulfilling these customer needs.Engagement among customers was taken seriously at KE,with them regularly taking group
21、 photos of all those present on a bus trip.This especially worked when KE put in its appeal for word-of-mouth promotion from its customers.KE ensured that a constant(excellent)standard of quality was maintained so as to protect their brand image.2.What role does culture and leadership play in the su
22、ccess of KE?A companys culture plays a particularly critical role in determining whether a strategic vision would be successfully pursued.The culture must be compatible and supportive of the vision.Leadership had sometimes been described as taking people to a place that they would not normally go to
23、 on their own.Once a sound strategic planning process has determined what that place should be,it was the leaders prime and fundamental responsibility to assure that there was cultural alignment with the vision and that the full resources of the organization were effectively brought to bear to achie
24、ve that destination.One of the Directors,Neil Geddes,was asked what made the KE so good and he had a simple reply:Services Marketing:People,Technology,Strategy (8th edition,2016)Page 5 of 7 “We ensure we give the customer what they want better than anyone else.Our service is not designed around what
25、 is good for the drivers;it is designed around what is good for the customer.We are close to our market;we are proud to be close to our market.When we the directors of KE travel,we stay in backpackers hostels,so as to learn and understand what the market wants.That is how we ensure that we always of
26、fer the best possible service for our clients.That is our core strength”.KE had tried to get all its staff working within the business to interact with customers.For example,there was a BBQ at a backpackers hostel in Auckland recently,at which KE had their accountants and other staffs to meet the gu
27、ests.In general,this group of staff did not usually come in direct contact with customers,but this event gave them a better understanding of who KEs customers were,and where they came from.Being first in the marketplace had also helped,as it meant that KE gained a lead in understanding what their ta
28、rget market wanted and how to service these needs effectively.This understanding has led KE staff to comprehend how it was for both the driver of the coach and the interaction between backpackers,which in turn,helped create the“KE Experience”.KE also surveyed customers on every single bus.One of the
29、 directors and the operations manager would read these surveys so as to monitor what was happening.They then used these surveys to improve their service to the marketplace.Although their core experience has remained the same,they continually try and add value to their service.The Kiwi Experience con
30、cept was based on being the best in the market for people seeking adventure,value for money and a memory to bank.Services Marketing:People,Technology,Strategy (8th edition,2016)Page 6 of 7 3.Brainstorm as to how other service companies might get customers to pay a more active role(rather than passiv
31、e)in the service experience.In the given context,other companies might get customers to pay a more active role(rather than passive)in the service experience by adopting following:Follow the leader in the given domain and adopt effective and eventful practices as much(resourcefully)as possible.Innova
32、tion or creating a niche is the golden rule to rise in service industry.A dedicated team may be assigned with exclusive role to create novelty among the existing ones.Tie-ups with other businesses complementing ones own adds value.Customers can get extended benefits in terms of privileges and discou
33、nts with other vendors with such collaborations.Identifying customers with the potential to spread the positive feedback.Word-of-mouth is the most effective advertising model.Recruitment and selection should maintain discipline at the highest level to ascertain the best talent in the company.Service
34、 failures must never be ignored.Instead,it should be appropriately reported with every minute detail wherever possible.Feedback should be considered in priority and acted upon with immediate effect.Services Marketing:People,Technology,Strategy (8th edition,2016)Page 7 of 7 TEACHING SUGGESTIONS The i
35、nstructor should make it a point to distribute the original case of KE to every participating student.Once they are through reading the entire piece,the instructor can ask students to summarize the case and give their views against the mentioned questions.The answers may be validated as per the give
36、n analysis.There is always scope of adding value.For Q3,it is a classroom activity and must be arranged as per the convenience of the instructor and availability of resources like books/content for references etc.Brainstorming is one of the most effective tool/method to create a complete new of anyt
37、hing,instantly.The degree of involvement of all people concerned brings out the best in them once they are challenged on their points of produce.All statements are then backed by strong logical referrals.CONCLUDING COMMENTS The case is a success model of KE,a travel operator in New Zealand.It provid
38、es an insight into how a company could perform better with strategic planning,elaborative,and timely execution.Apart from doing things rightly,it also has to keep itself thoroughly informed about all footsteps taken by competitors.This success model could be applied to other category of business as well with appropriate caution.