facilitating supplementary services

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DEVELOPING SERVICE PRODUCTS : CORE AND SUPPLEMENTARY ELEMENTS GROUP 3 Deven pai 1221512 Gulshan bhandari 1221513 Jayant jayasenan 1221514 Jyotishman kaushik 1221515 Lentson amos 1221516

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Page 1: Facilitating Supplementary Services

DEVELOPING SERVICE PRODUCTS :CORE AND SUPPLEMENTARY ELEMENTS

GROUP 3Deven pai 1221512

Gulshan bhandari 1221513Jayant jayasenan 1221514Jyotishman kaushik 1221515

Lentson amos 1221516

Page 2: Facilitating Supplementary Services

A Case study : STARBUCKS

• A Globally dominant specialty-coffee brand• Success contributed to three core components a) Highest quality coffee in the world b) Customer Service c) Ambiance• Core Product : Coffee• Supplementary Services : Wireless Broadband, Access to Apple iTunes music store, Movie DvD’s ,

Books, etc ………..

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Service Product

• A service product comprises all of the elements of the service performance, both physical and intangible, that create value for customers

• The value proposition must address and integrate three components

i) Core Product ii) Supplementary Services iii) Delivery process

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Core ProductA Core Product is the central component that supplies the principal, problem solving benefits customers seek

Supplementary ServicesThese services augment the core product, facilitating its use and enhancing its value and appeal to the customer’s overall experience

Delivery Processes

Concerns the processes used to deliver both, the core product and each of the supplementary services

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Reservation

Parking

Check in /Check out

Porter

Meal

Pay TV

Room Service

Use Phone

SERVICE OFFERING FOR AN OVERNIGHT HOTEL STAY

Scheduling

Nature Of Process

Core

Service Level

CustomerRole

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FACILITATING SUPPLEMENTARY SERVICES

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FLOWER OF SERVICE

CORE PRODUCTS

FACILITATING SUPPLEMENTARY

SERVICES

ENHANCING SUPPLEMENTARY

SERVICES

The supplementary services are classified into one of the eight clusters

The eight clusters are shown as petals surrounding the core of a flower which is said to be flower of service

The petals are arranged in the clockwise, in the manner they are said to be experienced however the encounter may not follow the same order

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CONTD...

FACILITATING SERVICES

• Information• Order-taking• Billing• Payment

ENHANCING SERVICES

• consultation• Hospitality• Safekeeping• Exceptions

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INFORMATION• To obtain value from any good service, customers need relevant

information• Customers nowadays are information hungry• Customers also require documentation of what has already taken

place such as confirmation of receipts, tickets or monthly summary of account activity(eg: SIB)

• Information must be provided in both timely and accurate manner(eg: redbus)

• Traditional ways include using front-line employees, printed notices, brochures etc

• Nowadays it is provided through videos, websites etc• Certain business provide opportunities to track their services(eg: EMS

speed post)

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ORDER-TAKING

• It is the first step when the customer is ready to buy• It includes applications, order entry, reservations or

check-ins(eg: admission process in college, a restaurant table)

• Accuracy in order-taking is highly essential• It can be done through sales personnel, phone, email

or online• It should be polite, fast and easily understandable• It should ensure minimum physical and mental

work(eg: m-tickets)

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BILLING

• Common to all services (unless the service is free)• Inaccurate or incomplete bills disappoint customers• Procedures vary from verbal statements to machine –

displayed price(eg: kirana, hotels)• Simple approach is self-billing(eg: small hotels)• Customers expect bills to be clear and informative• Customers hate waiting for bills• Recent trends include express check-outs in hotels and

rentals• Previewing bills on TV monitors

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PAYMENT

• Bills requires the customer to pay (which is especially slow)

• Certain services automatically deduct charges(eg: ATM)

• Methods range from self-service payment to credit cards, pre-paid and electronic payment

• Some service business have instituted control systems(eg: ticket checks)

• However the control process must ensure politeness with firmness

• Say THANK YOU

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VOILA

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Enhancing supplementary services

1.Consultation

• Response to customers’ questions.

• Advice to customers.• Tutoring or training in

product use.• Technical consulting.

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2. Hospitality

• Greetings.• Food and beverages. • Waiting facilities and

amenities – waiting rooms, newspapers, magazines etc.

• Transport.• Security

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3. Safekeeping.

• Caring of customers’ possessions.

• Parking of vehicles.• Baggage handling.• Packaging of goods.• Transportation and delivery.• Installation of purchased

goods.• Inspection and diagnosis.• Repair and renovation.

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4. Exceptions.

• Special requests.• Handling

suggestions/complaints/ compliments• Problem solving• Restitution.

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Managerial implications• The flower of service provide many options for

enhancing the core product.• The elements are categorized as facilitating and

enhancing.• Any badly handled element may negatively affect

customers’ perception of service quality.• The nature of the product helps to determine which

supplementary services must be offered and which might be used to enhance the value of the core product.

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Branding Strategies for Services• Brand House Using a single brand to cover all products Eg: Virgin group

• Sub Brands Corporate and the master brand is the primary frame of

reference but the product itself also has a distinctive name Eg: Singapore Airlines Raffles class-Companys business class Singapore airlines Suits-Its beyond first class services

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Branding Service Products and Experience

Product DifferentiationProduct Implies a defined consistent bundle of output as well as the ability to differentiate one bundle of output from another•Tangible- Eg: Product menu of fast food restaurant•Intangible- Eg: Service Offered by Insurance company, Courses of Universities

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• Endorsed Brand The product brand dominates but corporate name is

still featured Eg: Hotel Industry in USA

• House of brands In these each of the brand is actively promoted under

their own name Eg: Yum brands Inc- A&W,KFC,Pizza hut, taco bell and

long horns silver

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Tiering Service products with Branding

Offering several price based classes of service concept, each is based on packaging a distinctive level of service performance across many attributes

Eg: Hotels, airlines ,Cable Television, credit cards

BRITISH AIRWAYS SUB BRANDS Four inter continental offerings• Deluxe service • Club world• World traveller plus• World traveller

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SUN MICRO SYSTEM HARDWARE AND SOFTWARE SUPPPORT

• Platinum: Mission: Critical services with onsite services 24/7

• Gold : Business critical support with onsite services from Monday to Friday

• Silver: basic support with onsite services from Monday to Friday

• Bronze: Self support with phone services 8am to 5 p.m

Page 31: Facilitating Supplementary Services

NEW SERVICE DEVELOPMENT

1. Style Changes

2. Service Improvements

3. Supplementary Service Innovations

4. Process Line Extensions

5. Product Line Extensions

6. Major Process Innovations

7. Major Service Innovations

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REENGINEERING SERVICE PROCESSES

Reengineering involves analyzing and redesigning processes to achieve faster and better performance.

Identification of each distinct step.

Measuring how long each step takes.

Finding ways to speed up the process.

Eliminating a futile step.

Running tasks in parallel.

Eliminating certain existing supplementary services.

Adding new valuable services.

Rethinking points of service.

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PHYSICAL GOODS AS A SOURCE OF NEW SERVICE IDEAS

Each and every new physical product has the potential to create a need for related possession processing services.

Caterpillar example

Cat Financial

Cat Insurance

Cat Rental Stores

Cat Logistics

Equipment Training Solutions Group

Maintenance and Support

Remanufacturing

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USING RESEARCH TO DESIGN NEW SERVICES The need for research arises for figuring out which features and what price will create the best value for target customers.

Marriott Courtyard example

External Factors

Room Features

Food Related Services

Lounge Facilities

Basic Services

Value Added Services

Leisure Facilities

Security

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ACHIEVING SUCCESS IN NEW SERVICE DEVELOPMENT

1. Market Synergy

2. Organizational Factors

3. Market Research Factors

4. Internal Marketing

5. Product Synergy

6. Human Resource Strategies

7. People Processing Services

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THANK YOU !