De Mar’s Product Strategy

A-Team

What is De Mar’s product? What is De Mar’s product? Identify the tangible parts Identify the tangible parts

of this product and its of this product and its service components.service components.

plumbing, heating, and air-conditioning products

Product Strategy says: „Solve the customer’s problem no matter what, solve the problem when the customer needs it solved,and make sure the customer feels good when you live”

guaranteed same-day service

How should other areass How should other areass of De Mar of De Mar

(marketing, finance, (marketing, finance, prsonel) support its prsonel) support its product strategy?product strategy?

marketing:customer is the most important value for company„We will be there to fix your A/C on the fourth of July, and i’s not a penny extra.”

finance:benefit for costs

personel:‘special’ rates for emplyees working during ‘special’ days„the person who wants a nine to five job needsl go somewhere else”

Even though De Mar’s Even though De Mar’s product is primerily a product is primerily a service product, how service product, how

should each of the 10 OM should each of the 10 OM decisions in the text be decisions in the text be managed to ensure that managed to ensure that

the product is successful?the product is successful?

product product selection selection and designand design

qualityquality

processprocess

locationlocation

shedulingsheduling

layoutlayout

HRHR

Supply Supply ChainChain

inventoryinventory

maintanancmaintanancee

focus on pluming, heating and air-conditioning products

major priority, standards exceed regulatory requirements; same-day service while requiredlong product runs in specialized facielietiesFresno, California, located in one city--hire the best; well-trained employees, empowerment, most competitors guarantee their work for 30 days--highly trained staff, 24-hour-a-day, 7-day-a-week service at no extra charge for customers