Facilitating Supplementary Services
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Transcript of Facilitating Supplementary Services
DEVELOPING SERVICE PRODUCTS :CORE AND SUPPLEMENTARY ELEMENTS
GROUP 3Deven pai 1221512
Gulshan bhandari 1221513Jayant jayasenan 1221514Jyotishman kaushik 1221515
Lentson amos 1221516
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 ………..
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
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
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
FACILITATING SUPPLEMENTARY SERVICES
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
CONTD...
FACILITATING SERVICES
• Information• Order-taking• Billing• Payment
ENHANCING SERVICES
• consultation• Hospitality• Safekeeping• Exceptions
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)
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)
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
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
VOILA
Enhancing supplementary services
1.Consultation
• Response to customers’ questions.
• Advice to customers.• Tutoring or training in
product use.• Technical consulting.
2. Hospitality
• Greetings.• Food and beverages. • Waiting facilities and
amenities – waiting rooms, newspapers, magazines etc.
• Transport.• Security
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.
4. Exceptions.
• Special requests.• Handling
suggestions/complaints/ compliments• Problem solving• Restitution.
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.
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
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
• 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
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
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
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
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.
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
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
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
THANK YOU !