xpresso lube case analysis

Xpresso Lube

“Quick-Clean Oil service”

Introduction

• Theme:

Oil change station cum coffee bar.

• Entrepreneurial venture of Charlie Green.

• Started with the purpose of providing a unique,

pleasant and honest service to its customers.

Service Package• SUPPORTING ACTIVITIES

– Location on a main street near the university

– University Automotive : transportation service to and from work, located

behind Xpresso Lube.

– Carpeted floors and numerous tables and chairs.

– Outside area covered for use in pleasant weather.

• FACILITATING GOODS

– Large waiting area converted to a coffee bar with a number of amenities.

– Stereo system for music.

– Current reading material appealing to different interests.

– Proximity to local shops like Half-Price book store, Wheatsville Coop

Foodstore, Amy’s ice cream, and Toy Joy.

• EXPLICIT SERVICES

– To and fro transportation services from work.

– Customers can see the problem with the technicians directly due to the presence of lift

technology.

– Honest and reasonably charged services.

• INFORMATION

– Individual taste, preferences and requirements

are noted and taken care of.

• IMPLICIT SERVICES

– Music Bands to play in the evenings.

– Trust.

Distinctive Characteristics• CUSTOMER PARTICIPATION IN THE SERVICE PROCESS

– The customers can accompany the technician to the car to see the faults.

• SIMULTANEITY

– Oil changing services are created and consumed simultaneously

• PERISHABILITY

– Unoccupied seats in the coffee house at any instant.

– Unutilized time of a technician.

• INTANGIBILITY

– Customer satisfaction due to oil change with a coffee house experience attached.

• HETEROGENEITY

– Unique service for each customer.

• NATURE OF THE SERVICE ACT

– Tangible actions directed at the people as well as their possessions.

• RELATIONSHIP WITH CUSTOMER

– Discrete Transactions.

– No formal relationship.

• CUSTOMIZATION & JUDGMENT

– Highly customized service characteristics.

– Medium level judgments by customer contacts.

• NATURE OF DEMAND & SUPPLY

– Demand fluctuation over time is low

– Peak demand can usually be met without major delay

• METHODS OF SERVICE DELIVERY (at the beginning)

– Only single site service outlet. (Now multiple sites)

– Customer travels to service firm

Location’s Contribution

• Proximity to University Automotive :

It helps to provide to & fro transport from work.

• Site on a main street near the university.

• Proximity to many local shops.

Value Adding Services

• Service+ auto mobile parts.

• Car wash and interior cleaning facilities.

• Radiator Flushing.

• Wheel alignment facilities.

• Membership service for regular customers.

• Reminders for next service.

Presented by :Milan M – 13DM106Shahin Mohamed – 13DM169