De Mar

De Mar Product Strategy ( Case Study )

Discussion Questions 1. What is De Mar product? Identify the tangible parts of this product and its service components De Mar offers repairs and installations of plumbing, heating and airconditioning. Tangible  physical parts of repairs and installations Service components  same day service 24/7; only one tariff – no extra charges; one year guarantee

2. How should other areas of De Mar (marketing, finance, personnel) support its product strategy? Personnel need to be hand picked 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. 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.

3. Even though De Mar’s product is primarily a service product, how should each of the 10 OM decision in the text be managed to ensure that the product is successful? Competitive Advantage through Customer satisfaction (fast service, constant price, one year guarantee) Human Resources need to have a certain routine and requirements. The job design has to consider high flexibility, friendliness to the customer, qualifications. As the text indicates productivity increased dramatically over the last 8 years from $ 200.000 to over $ 3,3 million. This shows that the company strategy is working well and it should be continued in this way.

10th march 2008

Umbrella Corp