Service Packet - SCMG 383 FINAL PROJECT PDF

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SERVICE PACKET FINAL ...

Description

Loyola University Chicago

Green Machine

Ayala, Javier Clarke, Sheridan DeMarco, Angelo Guzman, Stephanie

SCMG 383 Professor Pettis Kent November 29th, 2018

Service Package New Service Idea:

Especially as students, grocery shopping may be an activity we turn away from because of the high-price produce. Although we all want to live a healthy lifestyle but we are limited due to our low budgets; therefore, we thus result to the fast food options that remain convenient while also favorable to our wallets. We wish to change that. Our service idea consists of making accessible unused disposable goods that are still fresh and safe from grocers and deliver to your door at a convenient and affordable price. At your local grocer, you may question how often they restock to ensure that produce is fresh. This then allows you to place your concern on where the excess is placed. If the produce is retocked every week for example, that excess produce can still be of value, and can be discounted. A comparison would be a Goodwill and the Salvation Army of produce. In this case, in a society that strives to limit waste, we want to do just that.

Target Customers (wants/needs):

Although for a company established by students, our priority is attracting the same target market. However, just like any product or company, we are always hoping to grow and welcome any demographic. This new service will include the support services necessary to insure growth and target those who seek low prices and convenience who strive in living a healthy lifestyle. Specifically, it is the working class and younger demographic who struggle most in making time available to go to their local grocer, save money, while obtaining healthy food options. We created a solution that target those needs.

Explicit Services:

Through this, the customer then becomes aware of the food they eat, and gains more insight into the food life cycle from farm to table. An educational aspect can be customers volunteering to join us as we visit grocers. The consumer is then exposed, first-hand, to the conversations and interactions that are essential to ensure that the customer is satisfied in the end. After we procure disposable items from grocers/markets, a customer receives a box containing the desired

disposable items. We claim them as “disposable”; however, these items, to clarify, are just as safe as produce that was just restocked. As a company, we would never betray trust or claim something that is invalid or untrue. Payment will occur through a website initially to establish demand, and then through an app. We also want to impose and automated monthly payment as well, that will make it more convenient for customers so deliveries and payments are consistent.

Implicit Services:

After conducting our service, we want customers to feel at ease. Customers should feel empowered that our service will provide a variety of goods of which they can sort and choose from. Further, awareness will be imposed of a global food crisis and it's inefficiencies, from our service. A myriad of produce gets disposed of after a certain grace period of being on the shelves. Regardless, this produce still has life left and can be resold and reused for a cheaper price. You wouldn’t throw out a shirt simply because of a miniscule stain; after a wash, it is good as new. This goes the same for produce.

Goods:

Now that the process is established, the presentation should not be overlooked. Working from the outside in: tape is used to seal the box, cold packs are placed to preserve items, the paper surrounding the produce ensures freshness and limits damage when transporting the box, and the disposable items themselves. We aim to prioritize our focus on optimizing space used with packaging and storage as well as transportation routes. Limiting costs while providing an unparalleled level of service will drive our sales most.

Location/Access:

Customers will be able to create accounts on our website and app. We originally wanted a very accessible and quick transaction process; however, we know that allowing a personal store location will provide that competitive edge that will keep us competitive and differentiate us from companies in similar markets. Customers may engage in visiting hours to our packaging facility to ensure proper delivery methods as well as visit our showcased produce. The in-store location will allow us to get to know our customers as well as encourage visitors to sign up with our

subscription service as well and ask questions. Although we are an online You can further determine your local grocer to establish convenience to allow for same-day delivery.

Service Encounter Design Principle 2: ●

Getting the bad experiences out of the way early ○

Post about the produce we do not have on the top of the website at the beginning of each day

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Implement a subscription service to move payment to the beginning of the process for interested customers

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Remind customers that our unique packages of the day are running out or completely out

Principle 3: ●

Segment the pleasure ○

Customers have their choice for preference-based produce packages or packages created by employees based on ingredients that work together (aligned with process 4)

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A note is placed on the package/bag of produce (in-store pickup) reminding customers when their produce would have been thrown out. Also, remind customers on the note that we compost overdue/bad produce (aligned with process 5)

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People can reserve produce for pickup ■

The staffs job is to make sure it is present when they arrive

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Combine the pain ○

All notices of undesirable information will be found at the top of the website ■

Undesirable information includes: out of produce, out of predetermined packages, hours of operation and closings

Principle 4: ●

Build commitment through choice (both employee and customer) ○

Customers choose what produce they want in their personal produce package ■

A list of produce is made available online based on seasonal produce or what is provided to us by local grocers.

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Pickup or delivery ■

A delivery service is made available at a premium; however, a pickup service is offered as well in hopes of encouraging sales in store.

Principle 5: ●

Give people rituals and stick to them (both employee and customer) ○

Every morning, post about available produce ■

As mentioned this is our competitive edge that will ensure loyalty

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Adding to our competitive advantage will be our delineation

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Routine and consistency will allow for customers to rely on us for up-to-date and current produce that is made available.

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It is important for customers to be ensured that deliveries will be made at consistent times ■

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Example: “Delivery before 5pm.”

A rewards program will be a strong KPI that will serve as a catalyst for consistency ■

Within this program monthly payments are made, where at the xth date of each month a shipment is made that can be delivered or picked up

Principle 1: ●

Finish strong ○

A thank you message/note will appeared once order is placed ■

A confirmation email will be sent to associated account information that will include information that will encourage loyalty or specials offered

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A coupon can be offered in respect to the amount of orders placed.

Service Delivery System Design Facility layout & design (servicescape):

We want to limit the overhead costs associated with high risk; therefore, we wish to start out with a 600 square feet retail space for minimal storage. In addition, a cart will be in place to display and sell food out of and within the store. In addition with overhead, a refrigerated van or truck is essential for picking and delivering packages to consumers and from local grocers.

Process design and customer/employee flows:

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Employee-guided versus customer self-service

Technology/equipment: ●

Refrigerated van

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Refrigerated food cart (in store)

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POS

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Website

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Sprinklers for shelved products

Capacity (how many customers can be served per day/week, etc.):

For physical sales, the capacity for day to day is limited to the store’s physical capacity. However, in order to meet breakeven as a whole culminating our physical and online sales, we would aim to secure 200 customers per week.

Employee job designs: ●

Drivers

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Inventory manager

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Shift associates (cashiers, openers, closers)

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Shift manager

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Operations manager

Employee skills: ●

Enthusiastic

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Customer service/volunteer experience

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Knowledge of produce

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Passionate about sustainability

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Ability to perform heavy lifting

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Ability to stand on feet for long periods of time

Recruiting/training:

As for recruiting, we want to look for spirited young minded individuals who want their voices to be heard and won't be afraid to have a say on new ideas. Since, the company is tarted up by college millennials, we too aim to attract that demographic as employees; however, we are open to all. We want employees to be familiarized with produce and the environment; therefore, a test may be required to test knowledge. In addition, we will be using a POS system to infiltrate and track orders and data, thus we will train employees on how to operate the system and test feasibility.

Clarify specifics on location, etc.:

We aim to first build our network and consumer base in Chicago, to further gage the potential to expand. With this, based on our product and focus on transportation, we want to stray away from heavy traffic locations. Although we want the location to serve as a focal point across all surrounding areas, we, too, don’t to be right in the city center due to heavy traffic and many parking restrictions. While many students may not obtain a whole foods or trader joes budget, we predict that majority of our consumer base will be students. Thus, we wish to be at a location accessible to public transit and schools/colleges in the Chicago area....