Gold Star

Chapter 4

Case 3

III. Gold Star Chili: Customer and Market Knowledge

Although no discussion questions are raised at the end of the case (a disturbing fact for some students who are overly focused on getting the “right answer”) some issues for discussion would seem obvious.

Customer and Market Focus

Strengths

Gold Star has segmented its customers into three groups -- franchisees, restaurant customers, and retail customers. They have carefully defined the characteristics of each.

To learn from customers, the company relies on face-to-face contacts, focus groups, customer comment cards, customer surveys, and structured meetings. Each of these is tailored to meeting the need of franchisees at various stages of growth of the franchise. Some of these include:

- Geo-demographic analysis of locations prior to building

- Use of Franchise Service Representatives (FSR’s) to stay in touch with franchisees and their needs when placing orders

- Opportunities to listen and learn through regular franchise meeting and training sessions

- Regular comprehensive surveys using questionnaires

Evaluation of product and service features takes place through formal and informal means, such as:

- Informal determination of product and service features through quarterly and semi-annual meetings, daily and weekly phone calls to FSR’s, and discussions with delivery personnel.

- Store managers’ contacts and discussion with “regular” customers

- Annual telephone surveys by a marketing consultant of 330 “heavy chili users”

Evaluation of listening and learning processes, both internally and as a way of benchmarking competition:

- Mystery shoppers are used to visit Gold Star and competitor locations

- Company management reads trade literature regularly

- Store operators often develop ways of tracking customer satisfaction...