Delivering Customer Value Marketing/Operations Report

Delivering Customer Value 27/11/2008
Delivering Customer Value
Module Lecturers:
xxxxxxxxxxxxxxxxxxxxxxx
How can the xxxxxxxxx Garden Centre improve the value delivered to a
specific customer or group of customers?
Student ID Number: xxxxxxxx
Bristol Business School: F/T MBA January 2008

University of the West of England
3500 WORD COUNT STARTS AT DELIVERING CUSTOMER VALUE
Page 1 of 29 xxxxxxxx
Self Evaluation Element
This report has clearly defined the problem of the non expert gardening
customer not being able to find the Hellebore plant.
It is worthy of consideration because non expert customers will be lost if they

cannot find what they want. They have little knowledge of similar plants. It
should also be considered because the non expert segment makes up 80% of
XGC’s business.
Non expert customers would value the problem being solved because it
makes it easier for them to get what they want.
The practical impact on the customers and the organisation was analysed
through the gap analysis and the root cause analysis. Theory from Berry et al.
(1990), Hooley et a. (2007) and other academics was used to understand
concepts and their implications. All of whom are cited in the text and
referenced according to the Harvard referencing system from the UWE BBS
website:
http//www.uwe.ac.uk/library/resources/general/info_study_skills/guideref.htm
The options considered were; process and flow, CRM, improvement priorities
and targeting strategy. There is extensive academic literature on these ideas
and concepts. The concept in described and applied to the customer not
being able to find the Hellebore plant. Advantages and disadvantaged of the
appropriateness of the model are then listed.
The impact of the concepts on customer value is evaluated during each option
and the more specifically during the solution recommendation.
A combination of CRM and process flow is proposed to be a solution.
The document is represented in a report format and has uses a research

based approach.
In the report it was very difficult to include all the academic knowledge gained
during the assignment and only selected areas were used.
Throughout the report the focus has been on delivering customer value to the
non expert customer.
The Xxxxxxxxx Garden Centre
Clift House Road - Southville - Bristol - BS3 1RX
Table of contents:
Title Page 1
Self evaluation element 2
The Xxxxxxxxx Garden Centre 3
Delivering Customer Value 4
Xxxxxxxxx Garden Centre 5

Segmentation 6
Gap analysis 7
Root cause analysis 9
Option 1 Process and flow 8

Option 1 Customer Relationship Management 8
Option 3 Improvement priorities 8
Option 4 Targeting Strategy 9
Recommendations to resolve the problem 10

Solution CRM 11
Solution Process and Flow 13
Conclusion 12
References 13
Appendices 15
Delivering Customer Value
Organisations must understand the nature of their business and how they are
meeting a customer need. Corporate success will be achieved only if a
company continues to meet customer needs (Levitt, 1960).
There are a number of consumer groups. Each group have different

requirements and will value different things. Consequently there are a number
of ways to deliver customer value to the various groups (Jobber & Fahy,
2006). A company is faced with managing available resources and options to
either please their customers or risk loosing their business. Abraham Lincoln
famously said “You can please some of the people all of the time, and all of
the people some of the time, but you can not please all of the people all of the
time” (Lincoln, 1838 cited in Hughes, 2007).
It can be argues that customer value will be delivered if the customer receives
exactly what they expected. However Professionals argue that if a company
can strategically position itself a fraction above the market needs, consumer
perceptions would change and the company would be seen to be delivering
customer value (Littler, 2007).
Xxxxxxxxx Garden Centre (XGC)
Located along the river that runs through Bristol and set beneath Clifton’s
famous Suspension Bridge, Xxxxxxxxx Garden Centre claims to be the South-
West’s leading co-operatively owned and independently run garden centre
(XxxxxxxxxGardenCentre.com, 2007).
Recently Xxxxxxxxx Garden Centre has invested in an award winning

architectural extension. Although there has been the investment into the
extension there has been little other investment into the business. There still
remain many plants outdoors with the risk of weather or logistical damage.
Xxxxxxxxx Garden Centre has been relatively successful and has capital
available for investment into the business to develop their delivery of
customer value.
The management team consist of four members who do not have direct
operational or marketing experience but have demonstrated their
entrepreneurialship over the years to bring the company to where it is (FAME,
2007). The company has a vision to grow and is optimistic about the future.
Customers Segmentation
Xxxxxxxxx Garden Centre is located in South Bristol and attracts customers

from the area as it is the main garden centre there. XGC is also reasonably
close to the centre and likewise is able to appeal to customers who can
access central Bristol easily.
Generally South Bristol customers can be divided into two groups. The first
group are considered to be expert gardeners and the second group are non
experts (Wedel & Kamakura, 1999).
XGC compete with a portfolio of companies ranging from B&Q to St

Werburghs City Farm. XGC is considered to be a smaller company. Hooley et
al (2007) suggest that small companies should segment as it will offer them
opportunities. XGC has a high market share of non expert customers 80% of
customers interviewed were non experts.
Here we will be concentrating on the core market segment of XGC.
This segment is entering a gardening hobby. The non expert customer is

usually unaware of products, availability and seasonal plants. As a half
hearted gardener the customer seeks an experience at XGC that does not
require the physical engagement of real gardening.
Gap Analysis
A gap analysis assignment tool will be used to compare customer

expectations and perceptions with business performance (Barry, 1990).
Gap1
The customer would like a plant, is told of XGC’s range, views the XGC
website and reads about the Hellebore plant and its exclusiveness to XGC.
Thus the customer expects to get a Hellebore plant easily at XGC.
Traditionally there have been weak forms of assuming the customers view
(Barry, 1990). Management not knowing what has influenced the consumer
assume customer expectation (see appendix 1).
Management consider cost to be more important to the customer, whereas

the customers themselves do not consider the cost to be as important as
speed. Without this analysis the management strive towards cost reduction
even if it means reducing the speed.
Gap 2
Management assumptions regarding the importance of flexibility are more

accurate. Performance standards must be set to create flexibility (Berry et al,
1990).
Employees are trained to cater for every customer need which is not a
practical performance standard. There are no standards in place that interpret
the management’s view of flexibility into practical application. Consequently
the functioning of XGC revolves around inadequate standards.
Gap 3
XGC want to implement a labelling standardisation strategy to help customers

find products. The procedure is to collect a label from admin who have
electronic labels if one is missing.
Employees show lack of willingness because labels should be dealt with on

arrival of products. The site is outdoors, large and staff are already
overstretched.
Gap 4
The customer wants to go to XGC and collect a Hellebore plant. The

customer expects to locate the plant easily as that is how it was advertised
(pictured) on the website.
Messages from XGC are converted into customer expectations (Berry et al,
1990). On arrival the customer does not locate the plant easily. Images on the
website show a neat and tidy area. XGC is not as tidy and orderly as the
website displays, and the customer cannot find the Hellebore plant easily.
The gap is therefore the broken promises of what XGC said they would do
and what they actually did.
The Problem – Focus on clear defined marketing and operational

problem and its root causes
Results derived from interviews with XGC customers pointed towards some
areas of concern They fact that labels were bad, not readable and
inconsistent.
Gap 4 identifies a promise to the customer that the Hellebore plant is easy to
locate and purchase at XGC. The problem is that the non expert customer
cannot find the Hellebore plant.
A root cause analysis can identify reasons for why the problem occurs (see
appendix 4). The practical problem is the non expert customer is unhappy
because the Hellebore plant cannot be found. This is because the Hellebore
plants are not visible. This is because the labels are not readable. This is
because XGC have no labelling equipment. This is because they have not
allocated funds to this issue.
A number of other causes have been identified in the analysis, all of which
arguably could be addressed and tackled.
The particular root from the customer being unhappy to the issue of the
finance is selected because it is considered to have priority. It is worthy of
consideration because a high number of customers experienced this problem.
If resolved it would have an impact on the value delivered to the non expert
customer (Thull, 2003). Non experts do not know their way around a garden
centre and they can feel frustrated it they cannot find what they want (Fraser-
Robinson & Mosscrop, 1999). Practicality and ease of use would be valued by
this customer.
Although not in the scope of this report, the inherent nature of this root will
encourage employees, which consequently will affect the customer
experience. This will contribute to delivering customer value.
This is a marketing problem of communication, resulting in an operational

issue of customers searching in the wrong areas (Johnson & Weinstein,
1999).
Option Analysis
Analysis and Possible Solutions
Option 1: Process and Flow
A functional layout is used by supermarkets and manufacturing who group

products or activities together. It is designed to make it easier to move around
in a systematic way. It addresses four main areas.
o The distance travelled around the premises.
o Quality in terms of damage or annoyance from constantly moving from

one place to another.
o Higher throughput time due to longer distances covered.
o Availability of space (Chambers et al, 2007).
Application
XGC can adopt a functional layout which lends itself to items being grouped
together similar to a supermarket. Customers can then take a route from
product to product according to their needs (Chambers et al, 2007). However,
not all customers will have the same route so it is also important that the
layout addresses other needs.
Naylor (2002) suggests that customers should be relaxed moving at the

speed where they can comfortably pursue their shopping. Customers should
enjoy the experience and notice displays of special offers as they pass. A
functional layout would structure the floor plan. A non expert customer would
be helped by the process flow. This would help identify the area in which
Hellebore plants are displayed.
Advantages
It would be relatively easy to implement as already there exists some degree

of product grouping. It could be implemented immediately.
XGC could design into the functional layout passing by and exploiting their
new award winning interior extension (appendix 5). XGC could take
advantage of their unique view of the River Avon. A structured functional
layout would designate particular places for promotional items (Hal, 1998).
The non expert would be delivered value through this option as it would have
a direct impact on the problem of not finding the Hellebore plant.
Disadvantages
Currently XGC have no clear sign boards. Functional layouts used in

supermarkets have large and clear sign boards. XGC would have to get these
made. This may have cost implications. It would take time to design such
boards as standardisation is more than likely to be an issue (see appendix 6).
The new indoor extension will limit layout options. Currently the extension is
situated on one side of the site so many visitors do not get the opportunity to
see the structure (appendix 5).
Option 2: Customer Relationship Management (CRM)
CRM is an approach that attempts to build customer loyalty and optimise long
term profitability (Hughes, 2007).
CRM is often referred to as a philosophy because it tends to stipulate the

organisational culture towards customer satisfaction. CRM recognises the
customer to be the key asset that needs to be managed (Rigby et al, 2002
cited in Hughes, 2007).
CRM acknowledges that businesses now have many channels with their
customers so emphasis is placed on developing better awareness of
customer needs. CRM focuses on:
o The internet.
o Customer databases.
o Profiling customers.
o Telephone conversations.
o Postal questionnaires.
CRM usually comes with sophisticated software packages. There is an

emphasis on sharing information between departments. This is done to know,
understand and address the customer needs. There can often be sensitive
data and building customer rapport is stressed in CRM.
Application
XGC could develop their existing website to allow for online purchasing. This
could initially form the basis of data collection at least for the segment that will
use e-business.
XGC have already identified that they need to develop their e-commerce
options. E-commerce will be part of a CRM solution system, so XGC could
address the two issues simultaneously.
There is a restaurant in the XGC which is popular and so questionnaires could

be given out to customers.
Advantages
The main advantage is to understand what the customer actually wants but is
not getting. The customer dissatisfaction explained in the root cause analysis
would be identified if CRM was introduced to XGC.
CRM is argued to be simpler in a smaller business unit and it analyses

customer information for multiple purposes (Piercy, 2001). Traditional model
for customer interaction (appendix 7) would not identify a problem such as the
customer not being able to find the plant. Customers will communicate with
more than just marketing and admin.
XGC would be able to create customer profiles, customer preferences and

customer order histories.
Better customer service could be provided to the non expert customers as

they would quickly be identified as non experts and dealt with accordingly
(Jobber & Fahy, 2006). New selling opportunities would be identified. Non
experts could be offered products that would encourage easy gardening or
loyalty to XGC. This kind of focus on the customer will produce value for the
consumer.
Disadvantages
Non expert customers may not want to be too involved with XGC. Making
phone calls to customers would be impractical for XGC at this stage, as they
do not have the human resources.
XGC have a simple IT system that is unlikely to integrate with a new CRM
system. CRM has an inherent relationship with information systems. For XGC
it would mean a new IT and CRM solutions system.
Many companies have attempted to implement CRM but have failed.

Incompatible technology and low team collaboration have been a problem
(Precision Marketing, 2007).
Quantifying the economic benefit of CRM is difficult. A cost benefit analysis

would need to be carried out.
A fully operational CRM package is implemented in stages and the overall

time taken is often unpredictable (Peelen, 2005). High data collection is
required for the system to generate useful information. This can be
underestimated.
Option 3: Improvement Priorities
Improvement priorities focus on paying particular attention to a selected

performance objective. The fundamental purpose is to shape the objective of
the operations (Chambers et al, 2007).
When assessing organisational performance improvement priorities is

concerned with::
o The needs and preferences of the customers.
o The performance and activities of competitors.
Improvement priorities will take parts of the business and categorise them into
how critical they are:
o Order winner: those that directly win business for the company.
o Qualifier: those which may not win extra business if it is improved, but
will lose existing business if the performance level drops.
o Less important: those that are relatively unimportant (Chambers et al,

2007).
The performance objectives can be placed in an importance performance

matrix to determine the importance of the improvement (appendix 8). They
are then given a status of excess, appropriate, improve or urgent action.
Application
XGC could undertake a reorganisation on the centre. An innovation based

improvement strategy would inculcate newer ideas and products. For example
they could offer garden furniture, clothing, pets and aquatics, craft and
giftware. Online shopping, loyalty cards and clearance lines have been
introduced by similar centres.
XGC have the space to exploit and so they could accommodate new ideas
and a new image.
Advantages
The introduction of new products such as pets is likely to produce a

breakthrough effect. This strategy will add more value to the non expert
customer as they will be offered many related products.
The introduction of new innovative products would naturally influence the

layout design. This will help the customer in locating the desired products
(Hal, 1998).
The garden centre can move towards becoming a garden and leisure centre,
which would be the natural progression for the business.
Disadvantages
Competitors that are in the garden and leisure sector are much bigger and
can offer customers better facilities. XGC have no knowledge of the
competitions corporate success.
It would be trial and error as there currently is no similar business in the area.
Risk assessment must be carried out as the strategy may be a complete
success or failure.
Option 4: Targeting Strategy
Targeting strategy determines the selection of the customers a company

wishes to service. The decisions involved in targeting strategy include which
segments to target and which products to offer them (Daly & O'Dea, 2004).
The principle is to concentrate and satisfy the needs of a particular group so

maximum resources are used to deliver customer value to the target
consumer (Hooley et al,2007). There are three steps to targeting strategy:
o Market segmentation
o Target market choice
o Product positioning (Hughes, 2007).
Targeting strategy is influenced by market maturity. Consumer behaviour is

monitored closely as targeting strategy will attempt to provide differentiation
from the competition (Daly & O'Dea, 2004). Emphasis is placed on
understanding the customer needs and what other providers are offering.
Finally there is importance placed on break even points as customisation can

increase cost. The volume of sales required to make a profit is identified.
Application
Other than the visitors mentioned in 3.1.2., there those looking for a leisurely
activity. Many people frequenting XGC are over 40 however couples, those
with families and elderly people also visit XGC.
XGC can start collecting information on their customers through their website.
XGC can reduce the number of specialised plants that appeal only to the
expert gardener.
Advantages
If XGC target the non expert segment they will be addressing 80% of the
business.
XGC have a differentiation aspect of being along the river. It is something that
competitors cannot offer.
Non expert customers will be given more attention. XGC will concentrate on
delivering value to this group.
XGC are already prepared to make information system investment.
Disadvantages
A target marketing strategy in essence aims to serve a niche market that

mainstream providers consider to be too small and not profitable enough. This
strategy will not lend itself to the business growing (Daly & O'Dea, 2004).
XGC do not have the sophisticated systems to inform a targeting strategy.

Decisions based on unreliable information can be extremely costly.
Recommendation: a combination to resolve the problem
Solution CRM
Solving the marketing problem (not being able to find the Hellebore plant) that
has a resulting operational issue.
To improve the value delivered to the core customers a good sound rapport
will be necessary. Interaction and feedback will allow XGC to cater for the
needs of its customers. This will contribute to the customer retention and
ultimately to customer loyalty.
With the arrival of technology, customers are integral part of the IT systems.
Each of the business departments is sharing information to improve their
efficiency. This multi-channel customer interaction model helps to better
address the customer needs and enables each department to perform better.
As we apply CRM to XGC we can see that the customer dissatisfaction

identified in Appendix 3 will soon be recognised. The customer not being able
to locate a particular plant, would not normally be communicated through the
traditional model for customer interaction (Appendix 4). With CRM a customer
may have been contacted by telephone where they express dissatisfaction.
They may also be given an option to comment on the website.
Departments
Data collected from the CRM system can be fed back into the other
departmental systems. Departments can take initiatives.
Marketing may choose to address the issue of labelling.
Finance will be informed of any investment requirements.
HR will be informed of the HR requirements, so they can allocate resources to

the problem
Marketing will liaise with the customer and offer product labelling similarity.
They could consider a promotional label range. There can be opportunities for
branding through packaging.
Resistance
However CRM recognises that people can become alienated by the distance
put between them and the organisation through technology. This is why CRM
must be built into the corporate strategy so customers’ feelings are considered
(Hughes, 2004).
Each company will vary in how it approaches CRM.
XGC is run as a cooperative so there is a sense of responsibility among

employees. They do not have a blame culture. Many employees find
themselves multitasking. However, XGC already have an organisational
culture which is resistant to change. The cultural challenges of the XGC
would perhaps prove more difficult. XGC staff would need training and support
to get them to think about the customer.
Above all CRM requires a buy in by top management as results initially are
hard to measure yet the CRM approach would require financial commitment.
CRM acknowledges that quick wins may need to be achieved in pursuit of a
bigger strategy (Hughes, 2007).
Once resistance is overcome CRM will fit nicely with XGC because the co-
operative was set up as a hobby of the current management. They have an
inherent passion for gardening and can relate to customer needs.
Standardisation
Customer feedback on the poor labelling would be addressed.

Standardisation of product labelling and labelling technology would be
welcomed by CRM. XGC will be in a better position to build on past mistakes
and make a commitment to continued improvement.
Customer
There remains a danger of annoying customers if CRM fails to identify the

tolerance zone for liaising (appendix 8). For the non expert it is only a small
portion of their disposable income they spend at XGC therefore they may not
wish to have high interaction with the company.
XGC benefits from strong social bonds and many customers know the people
in the co-operative personally. CRM and customer interaction may affect the
already powerful bond between the customer and business. It could also be
argued that due to the fact that customers have a close relationship with staff
members they are reluctant to voice their complaints or concerns. In this
situation a formal relationship marketing approach would be preferable for
long term success strategy.
Employees
Someone who was experienced in CRM would have to be employed. Users

would need to be trained on how to interpret and adjust the stock mix to
increase customer value (Fox, 2002). All staff would eventually have to be
trained on CRM systems.
Data made available encourages strategic decisions from departments.

Products need to match sales, public holidays and seasons (Fox, 2002).
Risk
CRM can only be a success if the technology is right for the company. CRM
needs the full collaboration and teamwork of the whole organisation. Sky
attempted to implement CRM but failed and is subsequently involved in a
legal case against the IT vendors used for CRM solutions (Precision
Marketing, 2007).
Solution Process and Flow
XGC is essentially retailing in garden products and other specialised products.

Items are displayed, customers generally walk around the site with a trolley
picking up the things they want and then heading to the exit rather like a
supermarket. The item available at XGC have been summarised in the table
below
Plants General Plants, Flowers, Seeds

Gardening Sheds, Groves, pesticides, shovel, spade
Pets Bird Cages, Dog Baskets
Clothes Hiking, Gloves, Rain
Publications Books, Cards, Gardening Literature
Restaurant Snacks, Drinks, Lunch
We can see the example of a supermarket as there are similar characteristics

such as pattern of arrival, trolley pushing, checkouts etc.
Supermarkets used to have frozen food near the entrance. There was no
strategic layout. Customers quickly made their way to checkouts without
browsing knowing that frozen products were thawing. After redesigning the
frozen products were placed near the entrance. Sales increased as customers
were prepared to browse more (Naylor, 2002).
XGC could use the functional layout design to achieve this. A possible
example of a functional layout is given in appendix 9. The clarity of flow
constitutes a successful layout (Chambers et al, 2007). Both customers and
staff will be able to locate where certain products are kept as everyone will not
have the same route. The entrance is changed so that the extension can be
seen straight away and the cafe offers a view of the river. The XGC
experience will become a relaxed environment for shopping, adding value
(Naylor, 2002).
Conclusion
It would appear that process flow can address the identified problem. While
this is the case it cannot be ignored that CRM has a fundamental principle of
engaging with the customer. This means that CRM has a commitment to
continual improvement.
A combination of both is inevitable because the problem is related to both

marketing and operations.
In the same way there are several other models that offer a solution or part of
a solution.
RGS have demonstrated their commitment to development through the

extension. Financially XGC can afford a CRM solution. Assuming a CRM
solution was compatible the other options would be rejected.
Appendix 1
Figure 1
GAP 1 Illustration
The gap analysis models require quantitative and qualitative measures for
assessing the customer expectation. Information used has been derived
from interviews.
Cost
H
Management Assumptions
Speed (locating) Dependability (respond)
Customer Priority
Quality Flexibility
(parking, access, layout)
Here we can use the five performance objectives to deal with the
expectations gap (Slack et al, 2007).
The black line represents how customers prioritise the different elements.
The black line represents the management assumptions needs to priority.
Appendix 2
Method
Initially a group of 6 MBA students visited a local garden centre. It was a

casual visit intended at just acquainting ourselves with the functions of a
garden centre, its general products, services, human resources and layout
styles used.
At this stage it was merely an investigation exercise as the choice of the

garden centre had not been made by any of the participants. The
participants consisted of an accountant, a software engineer, a company
director, an IT consultant, a civil engineer and a social scientist.
The visit provided a valuable insight into the issues deriving from such a
business. The co-operation of the staff and the appreciation of this type of
business operation provided the zeal required for 2 of the initial 6
participants to warrant further investigation. Another visit followed shortly
after which included liaison with both staff and customers in an attempt to
identify possible areas of improvement in value delivered to a specific
customer or group of customers. Work started on defining customer groups
and associated implications for the value delivered to them.
Having spoken to customers it was decided that a visit to a well-established

and renowned garden centre was necessary. Frequently customers would
refer to “Cadbury.” Typically, if Cadbury were closer I would go there.
Cadbury has more variety. Things are easier to find etc.
We also visited Cadbury for knowledge of; benchmarking, competition,

customer expectation.
Appendix 4
Root Cause Analysis. Why Why Diagram
Customer Unhappy
Cannot Find Hellebore Plant
Can’t see Hellebore Plant Wrong Location No Stock No Signposts
Lack of Knowledge of Plants
Staff Not Trained
Staff Not Interested
Rare Plant Type
Not a Good Selling Plant
Label Not Readable
Wrong Stationary (Pens)
No Labelling Equipment
No Knowledge of Available
Equipment
No Funds to Purchase
No Infrastructure to Support
No Operating Knowledge of
Equipment
Lack of Labelling Knowledge
Label Not Waterproof
Not displayed In View
Obstructive Objects
Bad Layout Of Plant Display
Isolated from related Plants
Too Many/Few Plants
Too Mush/Not Enough Storage
Not At Eye Catching Level
Display Tables Not Tall Enough
Plants Not Tall Enough
Plants Facing Away the Customer
No Highlighting, Capitals Etc.
Appendix 5
Award Winning exterior Extension
(XxxxxxxxxGardenCentre.com, 2007)
Appendix 6
Sign Board Examples
Appendix 7
Traditional model of customer interaction
Administration
IT/Systems
Finance Sales Customer
HR
Marketing
Source: Hughes, 2007c
Appendix 8
Importance Performance Matrix
Appendix 9
Possible Functional Layout
(Garden & Leisure, 2007)
Existing Layout
RIVE VIEW OF
PLAY
AREA Restaura
Modern
Extension
Flowers

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Delivering Customer Value 27/11/2008

Delivering Customer Value

Student ID Number: xxxxxxxx

Bristol Business School: F/T MBA January 2008

3500 WORD COUNT STARTS AT DELIVERING CUSTOMER VALUE

Self Evaluation Element

It is worthy of consideration because non expert customers will be lost if they

A combination of CRM and process flow is proposed to be a solution.

The document is represented in a report format and has uses a research

The Xxxxxxxxx Garden Centre

Clift House Road - Southville - Bristol - BS3 1RX

Xxxxxxxxx Garden Centre 5

Option 1 Process and flow 8

Recommendations to resolve the problem 10

Delivering Customer Value

There are a number of consumer groups. Each group have different

Xxxxxxxxx Garden Centre (XGC)

Recently Xxxxxxxxx Garden Centre has invested in an award winning

Xxxxxxxxx Garden Centre is located in South Bristol and attracts customers

XGC compete with a portfolio of companies ranging from B&Q to St

Here we will be concentrating on the core market segment of XGC.

This segment is entering a gardening hobby. The non expert customer is

A gap analysis assignment tool will be used to compare customer

Management consider cost to be more important to the customer, whereas

Management assumptions regarding the importance of flexibility are more

XGC want to implement a labelling standardisation strategy to help customers

Employees show lack of willingness because labels should be dealt with on

The customer wants to go to XGC and collect a Hellebore plant. The

The Problem – Focus on clear defined marketing and operational

This is a marketing problem of communication, resulting in an operational

Analysis and Possible Solutions

Option 1: Process and Flow

A functional layout is used by supermarkets and manufacturing who group

o The distance travelled around the premises.

o Quality in terms of damage or annoyance from constantly moving from

o Higher throughput time due to longer distances covered.

o Availability of space (Chambers et al, 2007).

Naylor (2002) suggests that customers should be relaxed moving at the

It would be relatively easy to implement as already there exists some degree

Currently XGC have no clear sign boards. Functional layouts used in

Option 2: Customer Relationship Management (CRM)

CRM is often referred to as a philosophy because it tends to stipulate the

CRM usually comes with sophisticated software packages. There is an

There is a restaurant in the XGC which is popular and so questionnaires could

CRM is argued to be simpler in a smaller business unit and it analyses

XGC would be able to create customer profiles, customer preferences and

Better customer service could be provided to the non expert customers as

Many companies have attempted to implement CRM but have failed.

Quantifying the economic benefit of CRM is difficult. A cost benefit analysis

A fully operational CRM package is implemented in stages and the overall

Option 3: Improvement Priorities

Improvement priorities focus on paying particular attention to a selected

When assessing organisational performance improvement priorities is

o The needs and preferences of the customers.

o The performance and activities of competitors.

o Less important: those that are relatively unimportant (Chambers et al,

The performance objectives can be placed in an importance performance

XGC could undertake a reorganisation on the centre. An innovation based

The introduction of new products such as pets is likely to produce a

The introduction of new innovative products would naturally influence the

Option 4: Targeting Strategy

Targeting strategy determines the selection of the customers a company

The principle is to concentrate and satisfy the needs of a particular group so

o Target market choice