Marketing Case - Gregory Shine Day Care - Group 2

SERVICE MARKETING

GREGORY SHINE

D A Y C A R E

AURELIE FABRE ELLIOT LALOI

DIMAS WIJANARKO NINA NURMAYANTI

PPM SCHOOL OF MANAGEMENT JAKARTA 2013

GREGORY SHINE DAY CARE

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CHAPTER I

BACKGROUND

One of the reasons Gregory Shine was so respected was its superior staff that all of Gregory Shine’s

employee were ECE (Early Collage Educator, a two year diploma).This helped bolster the Centre’s

reputation for safety and competence.

1.2. The Child Care Industry

Regulated child care was in high demand since increasingly for both two parents work outside

home. Non-profit regulated care positively influenced children’s development better than other forms

of child care. In Ontario, only 20% of its children under the age of five attended licensed child care

facilities. The remaining 80% receive care from a non-licensed.

The fees at Toronto Day Care facilities varied wildly depending on the household incomes of

family in their catchment areas. The most important criteria for parent’s choice are: safety, location, and

quality that linked to optimal child development are well trained staff. For the last reason, many child

care facilities struggle to attract and retained skilled staff since tight budget to pay staff relatively low

wages. The greatest expense for childcare is staff wages. The regulation about staff required in childcare

is the older the children get, the lower the number of staff required supervising them.

1.1. Gregory Shine Day Care

Gregory Shine Day Care was a registered non-

profit organization, licensed and reputable child care

facility with an impeccable safety record operating in

Toronto in 1979. The Day Care offering an intimate,

family-like atmosphere and a renowned educational

curriculum. For many children it was like a second

home.


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1.3. The Accident

On November 7, 2011, two year old Logan Simpson broke his leg on Gregory Shine`s playground.

Logan directly went to hospital with his mom and one of Gregory Shine staff. At the hospital, doctors

confirmed that Logan had broken his right femurs which consistent with fall from heights. But the detail

from Gregory Shine there wasn’t anything for Logan to fall. The information from City of Toronto`s Child

Care division say that injuries among children while in the care is common, so the Centre are not

required to carry personal injury insurance for children except staff and volunteers. Gregory Shine face

the accident and the tight margin just enough for coverage staff and volunteers insurance.

1.4. Gregory Shine Response and Follow Up

Dempsey, a representative for Gregory Shine has to report the accident to ministry of Children

and Youth Services. Before, Dempsey promise to give the report too to Logan’s mother but the lawyer of

Gregory Shine advised not to share the report and do not contact with Sampson family (Logan`s parents)

in case they were building a case against Gregory Shine.

On the other side, Sampson family feel frustrated because of Gregory Shine attitude :

unwillingness to find out the accident happened, no communication from Gregory Shine to make good

relationship with them, and Simpson family feel that all of the the valuation of Gregory Shine before

was fault since Logan got accident.

The impact of this accident, Logan need 24 hours care which need personal support worker to

help the recovery. Because of that, Sampson family asked Gregory Shine to refund their prepaid

November fees and the other expense during Logan`s recovery time.

Gregory Shine has the authority to refund of the November fees but as good willingness.

Dempsey wants to help them too in their nanny expense but she was conscious of her obligation to the

board to maintain a balanced budget. Since Gregory Shine doesn’t have insurance for children so if

Gregory Shine has to cover it would be from the Centre operating budget. Worst, if Gregory Shine chose

not to pay, there will a negative publicity about the Gregory Shine reputation that had been built by four

decades creating a name. In order to fix this, Dempsey has to address this issue and ensuring it will

happened again.


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CHAPTER II

KEY INTERNAL ISSUE

The base of this case starts with an accident at Gregory Shine’s daycare. On the morning of November 7,

2011 Logan Simpson, a two-year old child broke his leg while playing in the playground. Gregory Shine

Day Care having no formal training in public relations or crisis management. The executive director felt

she had handled the incident reasonably well: it seemed as though everything at the daycare had

returned to normal. Still, the executive director couldn’t stop worrying that the daycare might

experience further fallout from the incident. The executive director of a daycare is still trying to figure

out:

1. How to address legal, financial, and safety issues stemming from an incident that occurred two

months before, when a two-year-old boy broke his leg

2. What is an effective public relations strategy in response to a crisis? It could be used in either an

introductory marketing course or a promotions course where PR is a sub-unit. The emphasis is

primarily tactical as opposed to strategic.


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CHAPTER III

ANALYSIS

3.1. STP and 7P of Gregory Shine

Child Care Centre is one of the examples of service marketing company, so in analysis it has to

define the STP (segmenting, targeting, and positioning) and 7P (Product, price, place, promotion,

people, physical evidence, and process) shown in Table 1.

Positioning

Gregory Shine positioning is the reputable Child Care

Positioning

Centre that offers advanced day care services that give priority to safety, learning and development of

your children with child care educated and trained employee member.

Product Child Day Care Service Centre that offer part time and full time service for learning

and development children in infants, toddlers, and kindergarten

Price Full time : $ 940 - $ 1080/month

Part time : $ 55 – $ 61.50/day

Place Toronto

Promotion Word Of Mouth, Media, Community, Referral

Physical Evidence Building Centre, educated toys, class room, chair and table, whiteboard

People Executive Director : Dempsey

Caregiver employee : ECE graduated

Process Parents : looking for the best day care and registered their children to daycare

Caregiver : Supervise the children while there are playing and learning at the

Centre

Segmentation

The segmentation is the local community need for

child care services on the specific areas. Students will

be taken in flexibly on either a full-time or part-time.

Targeting

Gregory Shine is targeting the middle class and two

income families (both parents working) and

ambitious of their children learning and

development.


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3.2. SWOT Of Gregory Shine

In identifying strategy to face the Gregory Shine problems, the SWOT matrix used to analyze.

The SWOT matrix is shown in Table 2.

STRENGTH

1. Licensed Company and Good Reputation

2. Well educated employee

3. Second home for children

4. Safety and good location

WEAKNESS

1. lack of standard procedures to handle child

injury

2. Unclear SOP of failure management

3. Unclear of service recovery procedure

4. There is no mass communication division

OPPORTUNITY

1. Market of child care increased

2. 80% of Ontario children have not used

licensed child care company

3. Increase the referral – increase the new

costumer

4. opportunity to prevent a damaged reputation

with proactive communication and a focused

effort to establish itself as a safe and

responsible daycare facility

THREAT

1. Negative publicity from Sampson Family

about the accident

2. Competitor will take the accident opportunity

to decrease Gregory market share

3.3. Customer Response to Gregory Shine Day Care Service Failure

Simpson family as a victim of the Gregory Shine`s Service Failure response their dissatisfaction

by direct take some form of public action: Complain to the service firm which means complain to

Gregory Shine as a service firm about 3 points:

1. No Communication about the accident

2. No good willing to maintain relationship

3. unwillingness to find out the accident happened


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CHAPTER IV

SOLUTION

4.1. Strategy and Tactical Program for Gregory Shine Service Recovery

From all of the analysis including SWOT, company has to develop strategy in increasing

the ability as a service company. The strategies are:

1. Build a marketing communication division in company (W4 – O1,O2, O3, O4)

Provide information about Gregory Shine via email to all elementary schools, churches,

community centers, and local family friendly businesses

Provide information that related to sudden situations to neutralize the situations

(example : injury, accident)

2. Build a Complain Handling and Service Failure Process (W2, W3, W4 – T1, T2)

Whenever a service occurs, people expect to be adequately compensated in a fair manner.

In Gregory Shine Day Care, the company has not established the complaint handling and

recovery service yet. So, the next strategy is make a service failure process for day care

Service Company which consist of procedural justice, interactive justice and outcome

justice. The tactical process for day care describe below:

The role of marketing communication is to define

an organizations’ relationship with its customers.

This unit emphasizes the strategic importance of

such communication and its long-term effect on

consumers.

Tactical Programs for this division include:

Establish a monthly e-newsletter to send to

all parents to ensure they feel fully aware of

all Gregory Shine occurrences.


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Procedural Justice

Company contact the other related department (ex : lawyer, doctor, government) to get

the clear description about the service failure

Internal investigation

Interactive Justice

Company representative come to the customer who get the service failure

Company representative gives an explanation about the service failure

Company representative keep communicate with the customer during service failure

recovery

Outcome Justice

Compensation for customer (win-win solution )

Assurance to customer that the failure will not happened again

3. Build a service guarantee (S1, S2, S3, S4 – T1, T2)

This strategy is made as a preventive action to minimize repeated the same service failure,

increase trust from customer, and ensure the customer about the competitive advantage of

Gregory Shine Day Care (safety). Tactical programs to this strategy are :

Review all of the Standard Of Procedure and make a new one if needed

Assure all of the tools, games, and goods in Day Care suitable for children and not

harmful

Build training and development for employee about safety and first aid injury for children

Discuss with the government about the insurance for children


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4.2. Flower of Service in Day Care Service Company

Flower service is a concept categorizes supplementary service into facilitating services

into enhancing service. Which its use is to help us the supplementary element performed well.

SUPPLEMENTARY PRODUCT

CURRENT SITUATION SUGGESTION

Information

1. Providing pricing information, 1. Providing pricing information,

2. Condition service situation 2. Condition service situation

3.Instruction on using core product/supplementary service

3.Instruction on using core product/supplementary service

4. Providing product safety information

Consultation no data no data

Order Taking

1. Gregory shines Membership Program

1. Gregory shines Membership Program

2. Subscription services (month, payment, or daily payment)

2. Subscription services (month, payment, or daily payment)

Hospitality food and beverages, toilet, food and beverages, toilet,

Safekeeping no data Preventive maintenance - increasing safety environment of Gregory shine

Exception no data

1. hire employee to handling special communication to costumer

2. Training the employee and make SOP for possible accident may occurred

3. Make a service failure management system

Billing month, payment and daily billing add yearly billing

Payment no data no data


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CHAPTER V

CONCLUSION

As a service business Gregory Shine Day Care should provide important supplementary as added value

for company than competitors that suitable with flower service. In this case, Gregory Shine Day Care has

not provided yet for exception elements. These elements help company to improve customer trust,

increasing company reputation, and preventive the company from the unexpected incident. And if one

element is not provided or not well enough it will affect all of overall impression and image from

Gregory service itself. As a service company, Gregory Shine should make a concern to renewing their

supplementary service from flower service especially in expectation element.

The strategies for Gregory Shine Day Care to face this incident are: Build a marketing communication

division in company, Build a complain handling and service failure process, and build a service

guarantee as preventive action.

Documents

Marketing Case - Gregory Shine Day Care - Group 2