Service Marketing

INTRODUCTION There are two main parts of service operating system in every service company. One of these parts is not visible to customer, its called “backstage” or “kitchen side”. However, nowadays some service companies try to make this part more visible to customers. It’s a marketing trick and sometimes it really works. I want to introduce you with one the biggest food- service company in Latvia which is named “LIDO”. In my work I’m explaining main backstage elements in “LIDO” service delivering processes and my opinion about the way how are they making business?

SERVICE DELIVERY Is the process where services emerge for customers. “Delivery” means that an outcome of a production process, a physical product, is moved from the place of production or storage to the place of use or sale. Service is not delivered in that sense. (Grönroos 2001). Service delivery is concerned with where, when and how the service product is delivered to the customer. Traditionally service providers had direct interactions with their customers. (Lovelock at all 1999).

BACKSTAGE Metaphor for the area of the service setting away from the audience's inspection, where much of the planning and execution of the service experience occurs. Usually makes little interest to customers. Like any audience, they evaluate the production on those elements they actually experience during service delivery and, of course, on the perceived service outcome. Since high contact service directly involves the physical person of the customer, either customers must enter the service “factory”. Although there still may be many backstage elements that customers don’t see. (Lovelock at all 1999)

“LIDO” This is one of the oldest private companies in Latvia. It is in business since year 1987.and has only one owner- Gunars Kirsons. Today in “LIDO” works more than 1300 employees. The main aim for owner was to create the biggest food- service company chain in Latvia, which would be equal to main biggest international food- service companies in hospitality industry (similar structure and content). All ideas about how to make interior, menu and customer service, was created only by one person- by owner G.Kirsons. Now “LIDO” is the most popular food- service company in Latvia (all chain restaurants and bistros are located only in Riga-capital of Latvia) where everyone can take a healthy, tasteful, fast and cheep meal for all family. …