A Study of the phenomenon of customer disservice at the amalgamated beverage Industries

Abstract

The objective of this research paper was to examine and evaluate the phenomenon of customer disservice at Amalgamated Beverage Industries, and to suggest a customer centric approach that would enable the company to address the deficiencies identified in the sales and distribution departments. The report consists of seven chapters namely, the hypothesis and method of investigation, the literature review, the method of investigation and research methodology, the data analysis, the data findings , the recommendations and a brief summary chapter i.e. the conclusion. The management dilemma was identified as follows: Amalgamated Beverage Industries needs to promote a customer centric solution throughout the entire value chain of the organisation, For the purpose of this research, the problem identified and the solutions suggested concentrated on the sales and distribution aspects of the Southern Gauteng customer base as a sample representing the entire organisation. The objective is to move away from the present sales and distribution emphasis and adopt a more customer centric orientation. The management question at hand was therefore: What should be done at Amalgamated Beverage Industries with regards to sales and distribution, in order to promote a customer centric orientation and move away from a sales and distribution emphasis? The research paper reviews the related literature with a view to determine what a customer centric orientation entails. This information was used to extrapolate customer service gaps from secondary data available in the company to establish customer expectations and to formulate sustainable recommendations that could be followed in order to adopt a customer focused service. The hypothesis that was formulated in accordance with the management dilemma was that Amalgamated Beverage Industries needs to protect its future market strategy by adopting on a customer centric view in all its operations; to not only sustain current business but to safeguard its future position in the market which has become more competitive. The research methodology used to investigate the customer service problems at Amalgamated Beverage Industries begins by exploring the employees' perceptions towards customer service 3 in general. The sample used for the research was taken from the Benrose plant which is part of the Southern Gauteng region. The research methodology also uses case study of ongoing company surveys on customer service and careful examination of relevant literature. This discussion includes the research approach, data collection and strategies used to derive reliable and valid information. The aim was to evaluate the culture prevailing in the plant and its impact on customer service. Secondary data from Synovate Consulting, a research company was used to get a general idea of the level of customer service at the plant and customers expectations. Information extracted from secondary data available from a survey known as the "Customer Value Drivers Survey" was used to establish various expectations by customers in various channel markets, serviced by the Benrose plant. The results of the information are useful in determining the gaps existing in customer service The data analysis technique used availed itself of both quantitative and qualitative data. It was based on a detailed analysis and interpretation of findings of both primary and secondary data of customer satisfaction surveys and employees' perceptions at the Benrose plant. The surveybased secondary data from Synovate Consulting Company, and the Customer Value driver survey feedback, reflecting the current service levels, are summarised to show the trend and proportion of occurrences, by category. This survey establishes customer perceptions towards the services offered by the company in terms of value. The information gathered was used to obtain a general idea of the level of customer service at the Benrose plant, to establish customer expectations and to determine the gaps existing in customer service. The employee survey was based on a sample of 63 employees drawn from 303 employees at the Benrose plant in April 2005. A detailed questionnaire was sent out and the data collated in order to establish the employees' perception towards customer service. The study shows a need for a changed mindset and a more customer centric culture of the employees. The customer value driver survey revealed what customers perceived as adding value to them. The customer satisfaction surveys indicated that customer expectations are not being met. These surveys were important in formulating the recommendations as they are based on customer perceptions and not the company's perception. The research confirmed that over the last few years, despite the market place changing and competition increasing, the company has not changed its culture and practices towards customer service. The employee 4 survey revealed that employees believed that they were meeting customer needs, which is obviously not the case as indicated by the customer satisfaction surveys. The company thus needs to adopt a more customer centric culture in order to secure its market share and satisfy today's customer. Recommendations are given as a guideline that the company can use in moving towards a more customer centric culture. The recommendations are derived from various conclusions reached in this study. In order to improve customer service the recommendations are as follows: The Company should embark on introducing service standards and behaviour that is specific to a department. In addition to this, a transformational focus group is recommended that would champion change in the entire group. Models for cultural change are recommended and a rigorous change process fonnulated that would assist the company in achieving a changed mindset towards customer service. Additional recommendations given were that the on-going customer surveys should inciude competitors in the beverage industry in order to benchmark and be constantly aware of what is happening in the industry. A customer loyalty survey is recommended in order to establish the percentage of loyal customers that the company has. It was also recommended that the customer value driver survey that establishes customers' expectations be conducted annually in order to keep in touch with changing customer needs. To continually sustain a customer centric culture the recruitment process would need to change. Training and development for the entire employee group needs to be rolled out. Incentives should be linked to service. A sample of customers should be invited quarterly as a customer focus group to give feedback and suggestions of how the company can improve customer service. Finally a performance management human resource development system needs to be introduced in order that poor service to customers is addressed and the performance evaluations of employees inciude the results from the customer satisfaction measurements. The research reveals that the company is not meeting customers needs, and lastly, that the company compared to other players in the beverage industry needs to improve its customer satisfaction measurements in order to sustain its market share. It is important to successfully implement the recommendations detailed above and continually keep abreast of changing customer needs. The company needs to emphasize the importance of the customer, to sustain its current and future market share as the customer is the lifeblood of all businesses.