1.

0 Introduction
The Marketing Mix is a set of controllable variables that the organization can use to influence the
buyer’s response (Philip, 2009). The Chartered Institute of Marketing (CIM, 2008) promotes the
philosophy of a market-oriented organization, in which the target market and user are central to
every single decision made, and that decision should be in the best interests of the target market
while still doing so at a profit. This decision should be in the best interests of the target market.
A two-way conversation takes place between marketing and design when it is framed within the
context of a strategy that puts the user at the center.

In 1994, Haidilao was established as a brand. Haidilao International Holding Ltd. is a world-
renowned catering company after more than two decades of growth. Haidilao plans to establish
935 chain restaurants in China, Singapore, the United States, South Korea, Japan, Canada, the
United Kingdom, Vietnam, Indonesia, and Australia by the end of June 30th, 2020. As part of its
worldwide growth, the firm established its first Malaysian branch in 2019 at the Sunway
Pyramid Hotel (insiderretail.asia, 2019). Haidilao has weathered the storms of the market and
consumers over the years, and has built a name for itself as a high-quality hot pot brand. Haidilao
is a kind of hot pot that may be found in a variety of China. Integrity is a core value for Haidilao,
a global catering company with operations in more than 30 countries. One of its most important
responsibilities, according to this company, is to ensure that its food items meet the highest
quality and safety standards possible while giving better service to its customers (haidilao.com,
2022).

The objective of this research is to describe the high-contact-service organization’s extended

Services Marketing Mix strategy with the additional 3Ps – People, Process, and Physical
evidence which is Haidilao Hot Pot. Another topic will be discussing the expectations of the
customers in the services provided by Haidilao based on the three-stage model of services.
Finally, will be elaborating on the effectiveness of Haidilao’s services positioning and strategy.

2.0 Haidilao's Extended Services Marketing Mix Strategy

The marketing mix is an essential set of marketing tools and features that many companies use to
enhance their market penetration among their target market segments (Zander, 2018). Nowadays,
hundreds of new hotpot brands appear in Malaysia and all over the world where there are several
competitors. The promotion of values encourages individuals to focus more on the quality of
services whilst comparing tastes. Therefore, if they want to escape the tough competition, they
need a distinctive marketing approach that can attract the attention of the public.

Zhang Yong, Haidilao’s founder, had a vision of offering customers an inviting and memorable
restaurant experience. Today, Haidilao restaurants are known for offering customers services
such as free manicures and shoe-polishing while they’re waiting for a table (Tom, 2018). Zhang
has said that he believes in the importance of superior customer service. “I’m from the
countryside, where rural people believe that if you take money from other people and you don’t
bring benefit to them, then you are a liar,” he told The Wall Street Journal in 2013. The
following will be discussing Haidilao’s extended services marketing mix strategy – Product,
Price, Place, and Promotion with 3Ps - People, Process, and Physical evidence, which brings
fames and trust in tastes and services to their customers.

2.1 Product
Haidilao Hotpot Restaurant products are divided into five categories, all of which are offered
under the Haidilao brand. In other words, this company offers a range of items, allowing
customers to choose a desired product variety that meets their demands. Haidilaos products are
also very distinctive, having unique characteristics that other competitors lack. Along with them,
their items are seen to be of higher quality than those of its competitors. Customers are willing to
pay higher costs for these items as a result of this. Furthermore, Haidilao's items are well-known
for their classic touch and style, as well as their practicality for consumer usage.

Haidilao Hot Pot also serves ‘hotpot’ dishes. In these hot pots, pouring hot water over a heating
pad activates a chemical reaction that quickly heats a pre-cooked dish which about 10 minutes
(McFarlan et al, 2018). Haidilao's product range includes sauces, broths, and the self-heating
“hotpot for lazy people”. This cold-water hot pot is popular among office workers, students, and
backpackers. Haidilao’s hot pot makes a warm dinner wherever. The package includes boxed
materials, spoons, a heating pad, chopsticks, and bowls (Koetse, 2018).

Customers waiting to be served at Haidilao Restaurant source (Khor, 2019). Many customers
also prefer Haidilao services because of the additional personalized and free services it offers to
customers. Besides the free drinks, games, fruits and snacks, the brand also offers manicures to
its clients while they are waiting for the services. Customers also enjoy free leather shoe
cleaning, free message services, free photo printing and even children’s play rooms (Gabriel,
2018).

Figure 1.0 Haidilao’s take-away Hot Pot Products

2.2 Price
Haidilao's pricing strategy is based on a competitor pricing model. The corporation considers
operating and service costs when determining to price for items. Prices are higher than its
competitors when competition price information is unavailable, according to the
company's pricing strategy (Tie-ying, 2011). Free delivery is included in the final price of its
online items, which contributes to their higher cost. Optional product strategy models price basic
items apart from accessories. Wholesalers, retailers, and channel members may obtain the items
at a cheaper price, allowing them to generate huge profit margins.

2.3 Place
Over 500 retailers across the country sell Haidilao's products. The company utilizes retailers
extensively as part of their marketing strategy. Customers can easily obtain their products online
from wholesalers to retailers, and then directly from customers through an Amazon-like site.
(Coghlan and Hansen, 2018). Haidilao has created strategic partnerships with a variety of service
providers to handle its online business. There is also an omni-channel distribution system in
place, which integrates the company's physical shops with its online stores. The company's
website generates a significant number of sales, considering the large and consistent volume of
traffic. (Cai, 2015).
2.4 Promotion
Haidilao's annual promotional budget is set by the company, which uses a particular proportion
of total revenues to determine how much it spends on marketing. They have established a
presence on Facebook, YouTube, and Twitter. This has benefited in the promotion of their brand
image and presence across the globe (Pasto, 2018).

2.5 People
The marketing mix of Haidilao from a Hot Pot to Crisis Management - The art of dealing with
sudden and unexpected events which disturb the employees, organization, as well as external
clients, refers to Crisis Management (Prachi, 2015). They also place an essential focus on people
development and people building (Zander, 2018). For this reason, employees are so important to
Haidilao's ability to build long-term customer relationships. The following things are crucial to
Haidilao's development of their employees and people:
2.5.1 Training
Haidilao provides frequent training to assist staff progress professionally. The training
concentrate on managerial and organizational abilities as well as field knowledge. Haidilao's
training sessions and activities help employees improve, develop, and flourish. All training is
hands-on so employees learn and experience.
2.5.2 Organizational Ownership
Haidilao strengthens employee engagement and loyalty so they may perform well at work. They
know happy staff equals happy consumers. Haidilao offers compensation schemes, including
stock sharing, to boost employee dedication and ownership. Crisis Management incorporates
workers in decision-making at various administrative levels and considers their opinion on
projects and products to promote organizational ownership.
2.5.3 Motivation Building
Employees at Haidilao represent the company's public face and are inspired by the company's
dynamic and innovative work environment. Different incentive systems and bonuses are also
used to keep them engaged. The management's admiration and recognition of various workers'
efforts and performance may also serve as a source of inspiration.
2.5.4 Succession Planning
Haidilao's emphasis on succession planning helps them to remain a prominent leader in the
market. In order to fill the vacancy at Haidilao, they execute succession planning for all
management levels, which includes both internal promotions and external recruitments. They
have been able to deal with a wide range of issues because to their strategic succession planning.
2.6 Process
To ensure that customers can always access products at the local retail store, Haidilao has
installed systems that enable the local stores to notify the central team whenever the inventory
gets low (Silas, 2021). Once they receive the notifications, to continue servicing consumers,
management replenishes local stores with additional supplies. In terms of its online delivery
system, the staff checks the orders received in its computer system and, depending on these, the
particular items are delivered to the partner delivery service provider, who then delivers them to
the consumer (Khor, 2019). Haidilao has organized systematic processes in place to make sure
that the business experiences consistent growth (Zander, 2018).

2.6.1 Operations
All operations at Haidilao are well defined and conveyed to workers. Systematic procedures are
in place for all operations, from product sourcing to ultimate sale. For supervisory reasons, all
operational procedures are kept, validated, and uploaded through the organization's internal site.
2.6.2 People Management
Haidilao has also created clear people management procedures by simplifying its human
resource management department, as well as standards for staff recruiting, training, salary
management, and performance review. All persons involved in the processes are informed not
only to management and supervisors but also to workers, in order to foster transparency and a
trusting atmosphere. Progressive people management systems and processes have allowed them
to keep the workforce motivated and happy – which reflects in satisfied customers (Zander,
2018).
2.6.3 Quality Maintenance
Haidilao has policies and procedures in place to ensure that quality is maintained. Their products
go through three levels of quality control before they reach the customer. The management has
also established a dedicated quality maintenance and quality check department in addition to
quality inspections at the production and distribution levels. Experts in the quality maintenance
department ensure that not only the finished product but also the production processes
themselves are of the highest standard quality.
2.6.4 Store Management
Store management at Haidilao is overseen by a strict set of regulations and procedures. Both the
store's floor plan and the performance of its employees are impacted by these procedures.
Regular footfall monitoring and strategy development are also part of the store management
procedures. Customers are treated to a methodical procedure before making a purchase.

2.7 Physical Evidence

The physical evidence is also important in the marketing strategy for Haidilao as it works
towards influencing the consumers in favour of the brand and its offerings (Zander, 2018). The
physical evidence for Haidilao include:
2.7.1 Store Atmosphere
Haidilao's retail design and administration are both innovative and engaging. Customers are able
to connect with and appreciate the store's product offerings in a calm and pleasant environment
because to the store's atmosphere. The design of Haidilao's stores is particularly crucial since it
dictates the level and nature of the customer's experience and relationship with the brand. It's
much simpler for Haidilao to have a firm grip over the ambiance of the shop when the stores are
owned and run by the company.
2.7.2 Packaging
The packaging of Haidilao is distinctive compared to other competitors in the business. The
packaging has a vivid feel to it, and the colours and designs are often modified. The restaurant's
logo is straightforward and readily recognized by customers. The brand logo has also become a
symbol of confidence, ambition, and aspiration for consumers who use products by Haidilao.
The packaging of the products is sophisticatedly done and matches the brand image developed
and maintained by Haidilao (Zander, 2018).
Figure 2.0 Example of Haidilao’s variety of logos and packaging

2.7.3 Website Design

The website design is straightforward and simple to use. Haidilao's corporate website has the
brand logo and is packaged similarly to the company's goods. The website's design patterns and
colours shift in response to changes in product packaging to meet varied marketing demands.
3.0 The Three-Stage Model of Services Marketing

3.1 Before Eating (Pre-purchase Stage)

The pre-purchase stage for services is more complex since it includes a wider variety of
conditions and activities. Because consumers are engaged in the service production process, the
decision-making process is more time-consuming and complicated. Consumer competence,
knowledge, and perceived risk all play important roles in this pre-purchase stage (Byrne, 2005).
Arousal causes clients to begin investigating and analysing their choices before making a
purchase decision during the pre-purchase period. Needs may be activated by a range of sources,
including the unconscious mind (for example, impulsive shopping), internal states (for example,
hunger), and external ones (such as the marketing mix). Consumers may make impulsive
purchases or engage in "unplanned behaviour." Because of the higher perceived risk and
unpredictability associated with services, impulsive purchases occur less often than with items
(Sharma, Sivakumaran, and Marshall, 2009). When consumers recognise a need or a problem,
they are motivated to seek solutions to fulfil that need or solve that issue, according to the
planned purchase behaviour hypothesis (Figure 3.0). Pre-purchase information (Konus, Verhoef,
and Neslin, 2008) has a significant influence on what customers decide to buy.
Figure 3.0 The pre-purchase process of consumers in services (Source: Tsiotsou and Wirtz,
2012)

Haidilao service employees will greet you with a smile and inquire what they can do for you, and
they may even offer to clean your vehicle for free if you ask. They will open the door for you as
soon as they see a cab in their field of view. The whole eating experience at Haidilao is
complemented with smiling service from the time you step through the door. Due to an
overabundance of patrons, you will have to wait for a table. Watermelon, apples, peanuts, and
soy milk are just some of the foods and beverages you'll find at the hotel's reception desk. You
may also read novels, play Gobang, and clean your shoes while waiting for a table. However,
waiting for a table is the most tedious part of dining because of the traditional method of waiting.
In Haidilao, however, the presence of these distinguishing features has transformed the
monotonous into an exciting experience (Zhang and Xu, 2016).

3.2 During Eating (Service Encounter Stage)

Consumer contacts with the service provider occur at the service encounter stage. Consumers co-
create value and experiences at this stage, co-produce a service, and evaluate the service
experience (Brodie et al., 2011). Consumer engagement may be used as a proxy for the strength
of a company's customer connections based on the emotional and rational ties that consumers
have created with a brand. Engaged people have strong sense of trust, honesty, pride in the
business or brand, and passion for its products. Consumer participation with service brands has
been characterised as behaviour toward a brand or firm that continues beyond the purchase and
includes positive word of mouth, referrals, supporting other customers, blogging, writing
reviews, and even taking legal action. (Van Doorn et al., 2010). Customers' contacts with a
service provider might thus serve as a setting in which they can develop, express, and deepen
their participation (whether good or negative). Consumers must be motivated and equipped with
the necessary skills and knowledge to contribute their time, effort, and information at the service
encounter stage in order to jointly manufacture a service or jointly create value (Lusch and
Vargo, 2006).
The Haidilao staff will inquire about your dining needs and preferences, such as if you prefer
eating by a window or in a corner when there is an empty table. Then they lead you to your seat
and serve you to your taste. In the interim, the waiter will serve beverages for you and provide
recommendations on food. The most praised feature is that the service advises you not to order
too much food in order to reduce waste, rather than providing expensive or surplus food for their
own profit. For instance, Haidilao ensures prompt dinner service by giving each customer an
apron to avoid accidental spills of oil or plates. Customers will be provided a waterproof bag to
store their cell phones in so they may use them without fear throughout dinner. Of course, a
string and a little hairpin are usual for long-haired ladies, and fabric is frequent for those who
wear spectacles. When you sit, a heated towel will be available to clean your hands. Not only
that, but the waiters know your name and remember your birthday. When you go to the restroom,
there is specialised personnel that brings you hand soap and towels, as well as toothbrushes,
toothpaste, and cosmetics for ladies to meet their beauty needs. Consideration of a small place
and respect for those who bring someone, in addition to being useful, touches on the slow
thawing of a very sensitive point (Zhang and Xu, 2016).

3.3 After Eating (Post-Encounter Stage)

In the last stage of service consumption, the post-encounter stage, clients' behaviour and attitudes
are examined. At this phase in the service consuming process, customer satisfaction and
perceived service quality have taken the lead because of their link to company success (Brady
and Robertson, 2001). Happy consumers, on the other hand, may not necessarily return to the
same vendor or buy the same things they originally purchased from them. In addition to
customer happiness and perceived value, consumer responses to service failures (such as
complaining and switching behaviour) and consumer reactions to service recovery are also
crucial post-purchase outcomes (Tsiotsou and Wirtz, 2015).

Haidilao will provide you with free fruit and snacks when you complete your dinner and hope to
sit down to relax and converse. "Someone once wanted to package the remaining watermelon,
but the server informed them they couldn't since the fruit had been chopped," a customer stated.
When the visitor paid the bill, however, a full watermelon was wrapped (Zhang and Xu, 2016).
Small gifts will be given by Haidilao, along with feedback on the eating experience and
suggestions for future enhancements (Lu, Liu, and Yang, 2022).

3.4 Challenges of Three-Stage Model of Services

Many customers have recognised and commended Haidilao's exceptional service. However, the
context for these honours is far from straightforward. The requirements of customers are always
evolving as time progresses. Haidilao must also learn rapidly when it comes to innovation and
development. As part of Haidilao's investigation and conversation, they can go deep into the
minds of customers and their shopping habits. Customers' comments and behaviours provide
insight into both their personality as persons and how their environment has influenced them
(Lu, Liu, and Yang, 2022).

3.4.1 Pre-, During-, and Post-Purchase is Irreversible

There are three steps in food industry services: pre-consumption, in-consumption, and post-
consumption. In the Haidilao situation, it's easy to see where each step ends and where it begins.
In today's hot pot market, word-of-mouth is still an important source of pre-consumption
induction, both online and off. Consumers' "personalised service or care" in the middle of the
purchase cycle is a critical point of contact for inspiring high consumer awareness and long-term
customer loyalty. In the post-consumer stage, it's important to share good dining experiences
online or in person to make sure that loyal customers are being made and kept (Lu, Liu, and
Yang, 2022).

3.4.2 Pay Attention to Personal and Emotional Moments

The places of contact in the midst of the consuming process, "according to the individualised
service or care offered by customers," are well worth consideration. For businesses to be
successful, Haidilao must depend on the real-world interactions between workers and customers
to produce productive moments. Customer requirements and the moment they connect with
customers can only be swiftly captured via strong emotions and high attention from staff. The
everyday training of staff is frequently insufficient to address this issue. "Soft" training is
necessary for employees to grasp the psychology of customers and to respond appropriately to
their behaviour (McDougall, 2021). In order to master this skill, Haidilao has to put in plenty of
time and effort.

3.4.3 The More Points of Contact, the Worse it might be.

The more points of contact, the worse. Customers continue to value Haidilao's customer service
and the employees' enthusiasm and care. Staff and customers might get fatigued if typical
touchpoints do the same tasks over and over again. Haidilao's founder, Mr. Zhang Yong, is
likewise well-aware of this issue. As Haidilao's exceptional customer service becomes more
uniform, some customers have grumbled about the overly enthusiastic treatment, and some even
wish for a little more room for consumption. When it comes to managing touchpoints, the
hardest level to control is service that is both enthusiastic and useful enough.

4.0 Effective Services Positioning and Strategy

4.1 Services Positioning

High Price

Low Quality High Quality

Low Price
Figure 4.0: Haidilao’s Services Positioning
Haidilao created a strong value proposition that has resulted in long-term consumer loyalty. The
restaurant sector differs along two axes: "the vertical restaurant industry varies in the price they
charge, from cheap to expensive," and "the horizontal varies in the quality they deliver, from low
quality to high quality." The vertical axis represents the price level, with the greatest price
representing restaurants aiming for a high gourmet grade, such as Michelin-starred restaurants.
Figure 1 compares Haidilao's service position to other restaurants in order to have a better idea of
how Haidilao is positioned (Nguyenová, 2020).

4.1.1 Enthusiastic Services

When asked what Haidilao is known for, their services are always mentioned. In Haidilao, the
waiters are very eager and attentive to detail. The waitstaff are offering heated towels to
customers who are waiting for a meal. Even the restaurant staff is having a good time with the
kids on the playground. Contrary to other eateries, consumers now firmly believe in high-quality
service. Additionally, Haidilao pays their employees more and gives them the freedom to make
decisions based on consumer demands. Workers in Haidilao become more passionate as a result,
evolving and developing a feeling of belonging and power. When there are no special events or
activities, for instance, they may provide a discount or even provide the service for free (Chang,
2022).

People have a variety of needs, including physiological requirements, safety needs,

belongingness and love needs, esteem needs, self-actualization needs, and more, according to
Abraham H. Maslow's "hierarchical theory of needs," which was put forward in 1943 (Xu, Qian,
and Zhang, 2021). Overall, the service in Haidilao may satisfy a variety of customers' wants
beyond basic physiological requirements. Respect and belonging needs may be met through
Haidilao. Customers will develop favourable beliefs and ideas about Haidilao as a result, which
will foster brand loyalty. Additionally, the thorough and comprehensive service will guarantee
customers a wonderful experience.

4.1.2 Pricing Strategy and Location

The pricing method used by Haidilao to preserve revenues and pay expenses while providing
exceptional and passionate service is exemplary. This is accomplished in two ways by Haidilao.
First, it will demand a significantly higher price for its meals since brand-loyal customers are
prepared to pay more. In addition, Haidilao utilised a strategy of discounted pricing (Xu, Qian,
and Zhang, 2021). There are discounts for several customer categories, including college
students and the elderly. Additionally, different discounts are offered at various periods. There
are discounts on weekdays from 2pm to 5pm and from 10pm to 7am. On the weekend, discounts
of 60% are offered between midnight and seven a.m. (Chang, 2022). Each restaurant's site is
assessed in terms of its target clientele, surrounding environment, potential rivals, and present
condition. The location increases the restaurant's visibility and popularity. In addition, unlike
typical hotpot restaurants with their plain and colourless menus, Haidilao crafts a beautiful menu
with intricate illustrations. This will entice customers.

4.1.3 Activities and Facilities

Another important element that draws customers to Haidilao is its infrastructure. There are
several amenities available in Haidilao. Children may play with playground-style toys and
bouncy houses. There are several types of games available for adults to play while they wait for
their seats, including chess, poker, and other board games. For those who are hungry, a variety of
foods are available. People who use phones have access to free WiFi. People might pass the time
while waiting by playing or engaging in other activities. Customers take advantage of these
amenities and feel as comfortable and at ease in Haidilao as they would at home (Bao and Li,
2016). Customers would think Haidilao is even superior when compared to similar products.
despite the challenges facing those who are seated-waiting. For those who are eating, there are
festivities as well. For instance, employees are having a party and singing Happy Birthday to
those who have birthdays. A complimentary cake will also be provided at that table. Customers
will feel good in a warm environment that waiters will create. Customers will be asked for their
opinion of it and any areas that may be improved while they are paying the bill. After that, they
will think back on this time and connect their present feelings to how they felt about the meal
(Chang, 2022).

4.1.4 Brand
Due to excellent service, Haidilao has earned its reputation and brand. Those who received
excellent service will recommend Haidilao to their friends. This will provide a favourable first
impression and improve their overall dining experience. The target customers contribute to the
company's increased revenue and focuses on providing services in the midrange and upper
levels. Moreover, Haidilao actively monitors the development of technology in China, providing
information and the most recent news on major social networking apps such as Instagram
(Alhelalat, Ma'moun, and Twaissi, 2017). The experienced public relations staff of Haidilao are
adept at creating hot issues and handling unfavourable news. For instance, they will react
promptly to their own errors. For less serious issues, such as the chief's error while
demonstrating how to stretch noodles, Haidilao would simply turn it into a humorous story and
inform the audience that if they completed the requirements, they would get a free lunch. This
competent public relations staff guarantees that Haidilao has a positive reputation. Haidilao
creates its positive reputation and brand via its values and activities, with customer service as its
key objective. The customers that appreciated the experience will then help promote the brand.
(Chang, 2022).

4.2 Services Strategy

4.2.1 Offering Competitive Compensation

Front-of-house positions in China, including waiters and waitresses, are often seen as unstable
and of low social status. But Haidilao distinguishes itself from the competition, and its staff
members help the company achieve its exceptional market success by being energetic and
inventive. Due to the company’s competitive salary, they often express high levels of satisfaction
(Wang, 2022). By providing better working circumstances, more organised salary levels than
other companies, and more opportunities for career progression, Haidilao keeps and motivates
personnel based on "the principle of fairness and placing fate into your own hands" (Tang, 2011).
All workers are permitted to reside in rent-free apartments equipped with nannies, washing
machines, Wi-Fi, and air conditioning. A parent subsidy is available to those who have held the
position of assistant or higher-level manager for more than six months. The Family Care Team at
Haidilao also has a budget of RMB 100,000–200,000 set aside each year to assist staff members
in times of crisis and other urgent situations. Ancient Chinese literature is replete with references
to the values of impartiality, equality, fairness, and justice, as well as organisational and
employee welfare. However, Haidilao has put these ideas into action. Haidilao's core values are
based on the main ideas of Confucianism and family-based collectivism. This makes sure that its
employees and their families feel valued, respected, and trusted, and that the company works as a
whole (Chen, Shen, and Fan, 2015).

4.2.2. Exceeding Customer Expectations

Beginning with the first purchase and continuing through real ownership and the complete
service experience, customers' perceptions of value and satisfaction are formed. As a result,
reservations must be made in advance. The Haidilao telephone operator takes each customer's
preferences into account so that appropriate preparation may be made. Once the customer
arrives, they may take advantage of free parking and a free car wash. The ushers at the
restaurant's entryway will greet the client and inform him or her of other amenities like free
manicures, board games, and a kids' play area. Each party participant will be given an apron to
keep their clothing free of food stains after everyone has arrived. Extra care is needed to
safeguard their possessions from food. Long-haired guests may use the offered hair bands and
clips to keep their hair out of their meals. To cope with the steam from the hot pot, guests who
wear glasses are provided a lens cleaning towel. There are several different sauces and
condiments on a buffet table nearby. Free refills are offered on all beverages. Additionally, half-
portions may be ordered for any of the meals on offer. Dinner guests kept an eye on the servers
as they served and refilled their drinks as they ate and conversed with each other. It is a highlight
on the menu, with face-changing Sichuan Opera (a subset of the greater broad Sichuan opera)
being performed right in front of the customers during dinner time. The waiter shocked and
thrilled the customer by bringing two platters of hand-cut fruit immediately after the diner was
seen asking the server for some watermelon. Haidilao offers each diner two complimentary flash
photos after the meal. All of the consumers who took part in the observation said that they had a
great time overall. The food was always fresh, and the service was always great, so the
customers felt welcome and cared for (Chen, 2015).

4.2.3 Continue to enhance the Haidilao dining experience

High quality service, which is already the foundation of the Haidilao’s brand, is the main focus
of Haidilao efforts to increase customer satisfaction and brand loyalty. By further adjusting the
food and service, Haidilao wants to provide each client with a unique dining experience. For
instance, Haidilao is creating automated machinery that can alter soup bases so that customers
may choose their preferred degree of spice, depth of flavour, and quantity of certain components
like spring onions and mushrooms. If this technology were put in place, every visitor would be
able to design his or her own unique soup foundation. Each visitor's individual preferences are
saved in the Haidilao membership system and may be automatically ordered the next time they
come. In order to expand Haidilao's clientele, Haidilao also keeps creating new recipes based on
local culinary traditions and palate preferences. Haidilao is also looking at the idea of using
artificial intelligence technology, which would allow it to provide a range of tailored value-added
services, such as dish suggestions based on past orders. Haidilao launched flagship eateries that
employ digital sensors and projection mapping technology to provide customers with a fully
immersive eating experience. To create distinctive dining experiences with different landscapes,
periods, and themes, Haidilao integrated architectural lighting, audio, and visual technology into
the dining places. Haidilao thinks the immersive eating experience will help to make the
restaurants more enjoyable and boost client satisfaction. In order to improve the experience in
the waiting spaces, Haidilao has started using virtual reality entertainment (Haidilao International
Holding Ltd., 2018). Visitors can play games that give them discounts and free stuff as rewards,
which makes their whole dining experience better.

4.3 Problems and Challenges

The lack of a staff reserve is the most significant issue caused by Haidilao's quick development.
The main team at Haidilao's new shops often has to work there for three to five years before
moving on. The issue of "people" in the dish room, service room, and rear of the kitchen was
first brought to Haidilao's attention in August 2017. In August 2017, it was first discovered that
there were signs of rats in the back kitchen serving area, dishwashing area, and other locations.
Later, it was discovered that some Haidilao employees had used a hot pot spoon to remove the
clogged drain's garbage, which sparked a lot of debate and inquiries from the public (Bai, 2017).
The repeated food hygiene and safety issues are enough to show that Haidilao's internal
management has a serious issue that needs to be resolved, even though Haidilao later won the
public's tolerance and understanding thanks to its sincere apology and effective solutions. As a
catering company, food hygiene and safety sit at the core of Haidilao's development.
Haidilao had quality issues as a result of an actual scarcity of employee reserves, but there were
also difficulties with the company's corporate culture. The criterion of success at Haidilao in the
past didn't include financial achievement but rather the pleasure of both customers and staff.
However, Haidilao has recently begun to evaluate the number of patrons and the pace of table
turnover, which has caused a reduction in the quality of service and put personnel under a lot of
stress. Many former workers claim that Haidilao's corporate culture is imitating Huawei and
becoming more like a sweatshop, which instils a sense of awe and dread in others. This certainly
goes against Haidilao's basic cultural logic (Qiaoqiao, 2022).

There are two further challenges worth considering when Haidilao expands abroad. The first is
how to understand the scope of hospitality and privacy. Customers may feel that certain services
in the Chinese cultural setting go beyond what is considered to be an acceptable distance
between individuals, yet they nonetheless prefer to accept and approve of such hospitality
services. However, in other nations where privacy is valued, such specialised services may put
clients under mental strain or even make them feel violated. The ability of these employees from
various nationalities and cultural backgrounds to get along with one another, overcome cultural
barriers, and develop a strong sense of corporate identity while working harmoniously and
happily in a team environment and with a shared consciousness is another important issue for
businesses expanding internationally (Qiaoqiao, 2022).
5.0 Conclusion
In conclusion, the use of the Service Marketing Mix approach, together with the additional 3Ps,
has helped Haidilao become successful through its branches in Malaysia and other countries.
Along with the supply of one-of-a-kind product categories, this company's Crisis Management
strategies have been modified for both conventional and digital media. As a result, the company
has established a devoted client base, which has contributed to its expansion.

The three-stage model of services - pre, during, and post, shows that at the pre-purchased stage,
arousal causes clients to begin investigating and analysing their choices before making a
purchase decision. Needs may be activated by a range of sources, including the unconscious
mind and internal states. Pre-purchase information has a significant influence on what customers
decide to buy. Consumer contacts with the service provider occur at the service encounter stage
or during eating. Consumers co-create value and experiences at this stage, co-produce a service,
and evaluate the service experience. Engagement may be used as a proxy for the strength of a
company's customer connections. In the last stage of service consumption, the post-encounter
stage, customers' behaviour and attitudes are examined. At this stage, customer satisfaction and
perceived service quality have taken the lead. Happy consumers may not necessarily return to the
same vendor or buy the same things.

Price and quality are the two distinct aspects of the establishment that are contrasted with one
another. Because Haidilao provides such exceptional value to its customers, the company has
earned their undying devotion. The most costly restaurants are those that have achieved a high
level of gourmet excellence, such as those that have been awarded Michelin stars.