Case Study Product and Service Design

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Case Study PRODUCT AND SERVICE DESIGN 1. What is De Mar’s product? Identify the tangible parts of this product and its service components. Answer: De Mar´s product is service which includes installation, repairing and guarantee of plumbing, heating and air-conditioning systems. The tangible parts are plumbing, heating and air-conditioning devices and components (in case of repair). Part of its service components are 24-hour-a-day and 7-day-a-week service. It includes also one year guarantee. 2. How should other areas of De Mar (marketing, finance, personnel) support its product strategy? Answer: Personnel need to be handpicked and have to undergo a special education and ongoing training. During the selection process De Mar should carefully asset if the potential employees fit into the company profile and can identify themselves with the company philosophy. Also, personnel division has to make sure that they have enough technical workers on duty to guarantee the repair service in any time in the day. De Mar Marketing should convey the message that they deliver a high value at reasonable prices. Telling their potential customers that their services might be slightly more expensive but including the above mentioned points of their intangible services the ratio value/price is better for the customer. The company should carefully monitor its competitors to keep their prices at a reasonable level. Finance division has to make sure that the products´ cost is high enough to cover the personnel and the 24-hour-a-day service cost. 3. Even though De Mar’s product is primarily a service product, how should service design be managed to ensure that the product is successful? Answer: Competitive Advantage through Customer satisfaction (fast service, constant price, one year guarantee) Human Resources need to have a certain routine and requirements. The job

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