Identify tangible parts of product and its service component

Assignment Help Project Management
Reference no: EM131256053

De Mar's Product Strategy

De Mar, a plumbing, heating, and air-conditioning company located in Fresno, California, has a simple but powerful product strategy: 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 leave . De Mar offers guaranteed, same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge for customers whose air conditioning dies on a hot summer Sunday or whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: "We will be there to fix your A/C on the fourth of July, and it's not a penny extra.

When our competitors won't get out of bed, we'll be there!" De Mar guarantees the price of a job to the penny before the work begins. Whereas most competitors guarantee their work for 30 days, De Mar guarantees all parts and labor for one year. The company assesses no travel charge because "it's not fair to charge customers for driving out."

Owner Larry Harmon says: "We are in an industry that doesn't have the best reputation. If we start making money our main goal, we are in trouble. So I stress customer satisfaction; money is the by-product." De Mar uses selective hiring, ongoing training and education, performance measures, and compensation that incorporate customer satisfaction, strong teamwork, peer pressure, empowerment, and aggressive promotion to implement its strategy. Says credit manager Anne Semrick: "The person who wants a nine-to five job needs to go somewhere else." De Mar is a premium pricer. Yet customers respond because De Mar delivers value-that is, benefits for costs. In 8 years, annual sales increased from about $200,000 to more than $3.3 million.

Discussion Questions
1. What is De Mar's product? Identify the tangible parts of this product and its service components.

2. How should other areas of De Mar (marketing, finance, personnel) support its product strategy?

3. Even though De Mar's product is primarily a service product, how should each of the 10 strategic OM decisions in the text be managed to ensure that the product is successful?

Reference no: EM131256053

Possible for a project to have a project schedule variance

Is it possible for a project to have a project schedule variance (SV) to be positive, while the schedule update to show that the project is behind, or vice versa? when would

Basic phases of the project lifecycle and their objectives

What is meant by project? Write down the basic phases of the project lifecycle and their objectives? Why is it significant for organizations to use project management to achie

Major or minor renovation of the current plant

Frodo, a junior engineer at Baggins Metal Works is considering the introduction of a new line of products. In order to produce the new line, the company needs either a major o

Explain whether either party breached the agreement

Eagon responded to the letter, stating that there was ‘‘no contract'' because ALPAC's breach (not shipping by the deadline) excused Eagon's performance. Explain whether eith

Develop and write a substantial research project report

Develop a project proposal and present and justify the planned project to key stakeholders. Design and undertake research using appropriate methodology. Develop and write a su

What immediate actions will you take

Project started on time yesterday. After only one day into project you receive a call informing you that due to a fire the "Design of Cust. Parts" is delayed 5 days. What po

Question related to prioritization process

What kinds of weighting factors do organizations consider as part of their prioritization process and please use the text and other readings and cite properly, plus share yo

Dividend on the remaining shares of stock

The bonds' annual interest rate is 6%, which is paid on July 31 and January 31. On October 15, Herman receives a $2,200 dividend on the remaining shares of stock. How much g


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd