Aunty MAriA: CoMe HoMe for A Coffee

Teaching Note
1. Overview Aunty Maria case offers fresh insight into how a a coffee shop has created new market space by using an uniquely identifiable service to make it one of the most frequently visited coffee shops in the state. It highlights how branding the human resource of the organization with the behaviour of an adorable local character charismatic leader can transform a workplace of responsibility, commitment and team-building which finally enables the business to soar amidst the competition and attract the right customer base with a difference. This case explores the impact of the cultural concept idealized by Aunty Maria in designing its strategic functional units of infrastructure, production and service, a unique strategy which bore fruits successfully. The initiatives of the new management and the vision of a consultant with a rich hospitality experience are seen with some success as it reflects strong support derived from the vision of the Managing Director of the corporation. Maintaining high quality standards for the products, making the patrons feel homely through an antique ambience and serving the customers in a traditional way which is motivated by the need to preserve the rich cultural heritage of Goa. But success is not a goal or a destination but a path to be followed for life and theres a lot more to come from our Aunties Bakery.

2. Issues raised in the case There a number of issues coming from the perspective of influence of culture at workplace: Is the service policy at the restaurant in line with the cultural concept idealized by the hotel? Aunty Bella Nunez epitomises the cultural calling of the ambience and the homely service offered to the customers. Maintaining the stand that the business focuses on quality products (FMCG) and also adheres to the quality of services, the process of the F & B Dept. in recruiting good staff based on their attitude to serve as well as identifying their core strength in relation to the business need and then working them through formal and informal briefing supervised by the Aunty herself supports the business practice in building a good working team. Is the digitalization of the ambience going to affect the homely feeling experienced by the customers? The success of the contemporary antique culturally rich ambience reflects that the business idea has seen received well by the customers as it is unique as well as pleasing. Introduction of gadgets like a 42 LCD TV set would disturb the workplace ecosystem and lessen the feel of Aunties coffee shop which would have repercussions on the positive organization behavioural traits such as good team work, low level of labour turnover and customer retention rate. However in the light of expansion there is a need for soft music to be played in the background to enhance the melancholic feeling of the coffee shop especially during the monsoons.

pg. 1

3. Case Summary Aunty Maria is a unit of Hotel Fidalgo, which was established in the year 1974. An elegant business hotel, Fidalgo is conveniently located in the heart of Panaji on 18th June Road, with shopping plazas, art galleries & ATM centres in the vicinity. Since the coffee shop belongs to a four star hotel, Hotel Fidalgo it abides by the code and conduct of the same. Hence customers can be assured about the authenticity and quality of the food here in terms of freshness and taste. The service is splendid and leaves no room for any complaints. This is a lovely coffee shop that has everything it takes, in terms of food and service. Aunty Maria is one of the only restaurants / coffee shop that is open 24 hours in Goa and thus provides midnight snacks as well. The case reflects the functioning of Aunty Maria and incorporates the idea behind its unique culture-oriented business concept. One of the in genuinely distinctive characteristic of this coffee shop which justifies its concept is in the form a steward named Aunty Bella, who is the brand ambassador and public image of the restaurant. She is the most special personality of Aunty Maria, known affectionately by all her patrons and she speaks through this case the success of the coffee shop in the past 6 yrs. 4. Teaching Themes / Teaching Objectives The Challenge of starting a 24 hour coffee shop Culturally inspired practices versus Traditional hospitality services Recruitment policies and Training and Development Planning, Practicing and Evaluating changes. Word of Mouth Marketing. 5. Assignment Questions (Answers are given below) Analyse the current condition for the expansion of the business. Has the marketing strategy and advertising been successful in promoting the brand Aunty Maria? If no, What is the missing link to this case with reference to the HR perspective Compare the two approaches: the strength of the Goan bakery and faith in the cultural ambience v/s the digitalized and proactive marketed aesthetic appeal of the other coffee shops in the city. How much evolution has the restaurant experienced since its inception? 6. The teaching of the case should take 90 minutes in total. a) Start the case discussion and background preparation among students ( 10 mins) b) Discussion on the four case questions among different students groups (45-65 mins in total)(1015 minutes per case question) c) Discussion on other aspects sprouting out during the case discussion which needs deliberation (10 mins) d) Summarization from each group leader (15 mins) a. What theories are captured and explained through the case and its discussion.

7. Questions for Discussion: An effective method for the on-going discussion following the various group presentation is: Share similar experiences of coffee shops in your city exhibiting the local culture and providing a relaxed homely environment to enjoy the coffee. Similar questions to the above could be posed to move the discussion to a new perspective:

pg. 2

In your view, is the management right by relying solely on word of mouth form of marketing or other methods required? What are the difficulties faced by any new competitor entering the caf market in Panaji? Why is the presence of Aunty Maria a big factor for any new entrant?

7. Answers to Assignment Questions: a. Analyse the current condition for the expansion of the business.

Hotel Fidalgo already has plans to set up outlets of Aunty Maria in Porvorim and Mapusa but in the current condition the following points through the company and market perspective are important. Market perspective: The real estate rates have shot up in the past couple of years but for a big enterprise such as Mabarest Hotels it shouldnt be an issue to worry about considering the potential of return on investment expected. Numerous quality Hotel management institutes have come up in the state providing quality workforce to the hospitality industry. Customers would prefer Aunty Maria being in numerous places as currently patrons come from all corners travelling long distances because of its quality. Having Aunty Maria near them would just multiply the patrons. Company perspective: Expansion in Goa is favourable as the market behaviour is already known. National-level expansion is subject to certain higher risks since there is less awareness of the organisational culture or model that would succeed in other cities. Also Aunty Maria exhibits Goan culture and ambience and there is an uncertainty over its acceptance in other parts of India. Currently Aunty Maria is under the secure umbrella of Hotel Fidalgo. It is a part of a bigger entity run by a common management and staff. Solely operating on itself in an alien environment might hamper its quality and make it responsible for its own revenues. A better idea would be to set up Hotel Fidalgo branches in all the major cities in Goa will all the trademark food enclaves included in it.

b. Has the marketing strategy and advertising been successful in promoting the brand Aunty Maria? If no, what is the missing link? Aunty Maria has relied on "Word of Mouth" marketing to promote its brand since inception .It has believed in the concept that providing quality service to the customers is the best advertising. They have never used any other method of brand promotion and the formula has worked for many years. This saves a lot on operating expenses and the restaurant has used the money to spend on its quality of serving and to remunerate its staff in the best manner. He cited the example of big brand "Barista "which came and went off from Goa, even though it spent a lot on brand promotion. But with more coffee shops coming up and many following a theme or concept, there could be a threat to Aunty Maria's supremacy in this market and thus it needs to look for some brand promotion ways.

pg. 3

c. Compare the two approaches: the strength of the Goan bakery and faith in the cultural ambience v/s the digitalized and proactive marketed aesthetic appeal of the other coffee shops in the city. Traditional Goan Approach Simple aesthetics are used Minimal use of media such as Music and TV. Small capacity of the caf catering to less customers Ideal place for discussion a quiet celebrations. Modern approach Sophisticated aesthetics Maximum use of music and TV resulting in noisy environment. Large capacity leading to large groups of customers loud in their manner. Ideal place for an extravagant party.

pg. 4