De Mar's Product Strategy

Keywords: de mar marketing analysis

De Mar's Product Strategy

De Mar, a plumbing related, heating, and air- fitness company situated in Fresno, California, has a straightforward but powerful product strategy: Solve the customer's problem no matter what, solve the condition when the client needs it fixed, and make sure the client feels good when you leave. De Mar offers assured, same- day service for customers necessitating it. The business provides 24- hour- a- day, 7- day- a- week service at no extra charge for customers whose air-con dies on the hot summer Sunday or whose toilet over-flows at 2: 30 A. M. As associate service coordinator Janie Walter places it: "We are there to fix your A/ C on the fourth of July, and it's really not a cent extra. When our competitors won't escape foundation, we'll be there!"

De Mar assures the price of a job to the penny before the work starts. Whereas most opponents guarantee their work for thirty days, De Mar ensures all parts and labor for one year. The company assesses no travel demand because "it's not fair to impose customers for generating out. " Owner Larry Harmon says: "Our company is within an industry it doesn't hold the best reputation. If we start making money our definitive goal, we are in big trouble. THEREFORE I stress client satisfaction; money is the by- product. " De Mar uses selective hiring, ongoing training and education, performance procedures and payment that incorporate client satisfaction, strong teamwork, peer pressure, empowerment, and ambitious promotion to implement its strategy. Says credit manager Anne Semrick: "The individual who wants a nine- to- five job must go someplace else. " De Mar is reduced pricier. Yet customers react because De Mar delivers value- that is, benefits for costs. In 8 years, annual sales increased from about $ 200$ 200, 000 to more than $ 3. 3 million.


Discussion Questions

What is De Mar product? Identify the tangible parts of this product and its service components

De Mar 's product is maintenance and installations of plumbing & HVAC. This is actually the tangible part of their product offering; parts of repairs and installations and service of the components. Same day 24 hours 7 day service at no extra demand with a twelve months service guarantee puts them ahead of most competition that only ensure their service for thirty days.

2. How should the areas of De Mar (marketing, money, employees) support its product strategy?

DeMar's marketing department can leverage the business's reputation and guarantee into a solid marketing campaign. The marketing team should do market comparisons of competitors and use that contrast in their marketing strategy, that 12 months guarantee considerably surpasses a thirty day guarantee and shows that the company has self-assurance in their product and service.

De Mar's selective hiring process and ongoing training and education, ensures performance steps and compensation which could ensure client satisfaction. Another marketing strategy and designed the HR practice "The individual who wants a nine-to-five job needs to go someplace else. " Customers don't brain paying more because De Mar offers value added product and services evidenced by annual sales increase over 8 years from about $200, 000 to more than $3. 3 million

3. Despite the fact that De Mar's product is mostly a service product, how should each one of the 10 OM decision in the written text be managed to ensure that the product is successful?

Quality - DeMar's ultimate goal is client satisfaction, solve the problem when the customer needs it resolved, and make sure the client feels good when the job is completed. Therefore, customers expect quality and DeMar's reputation warranties quality. The OM should ask customers to complete a customer satisfaction study about assembly or repair. This gives the OM first side knowledge of how customer recognized the service and the serviceperson.

Product - DeMar's product is domestic plumbing and heating and cooling. The installation is merely as effective as the merchandise being installed and the merchandise is only as good as the installer. Product and service go together. The OM should shoot for an excellent product that could live up to the 12 months warranty and service quality for the service person.

Process - DeMar's process can only just be increased by mix training staff to keep up adequate staffing and stay on top of new technology to remain competitive in their market. Above all DelMar should carefully keep an eye on its rivals to keep their prices at at your fingertips of their target market. There are plenty of process possibilities for heating chilling and domestic plumbing. The OM must be go through the physical product and the intangible services provided by the company to create the procedure. Technology is open to streamline the overall process of supply and demand as well as arranging staff to meet up with the companies and customer needs and really should be taken into consideration as bills and capital commitments that will determine a lot of the firm's basic cost framework of DeMar.

Location - De Mar, a plumbing, heating, and air-conditioning company situated in Fresno, California, has a simple but powerful product strategy: Solve the customer's problem no matter what, solve the situation when the customer needs it fixed, and make sure the client feels good when you leave. De Mar offers guaranteed, same-day service for customers demanding it.

Layout - The plant must include enough secure auto parking for service vehicles and inventory. Parts and area of expertise tools should be easily checked out per job. In order for the smooth businesses of the shop parts and tools must be obviously identifiable and nicely stored.

Human Tool. Human resources is important to any service procedures. This is not a 9-5 job and the Recruiting department must hire staff capable of working various shifts. The staff appointed must be personable, professional and skilled. Workshops and skills an assessment testing is must in the service industry

Supply Chain - Supply string management is the loaf of bread and butter of the service industry. The OM has to take into consideration ordinary ordinary maintenance jobs and their inventory needs as well as seasonal maintenance. In the summertime customers may want to refresh or replenish their air conditioning system. Other careers may require a complete overall. The OM's job is to recognize suppliers that can handle expedite delivery of area of expertise parts parts needed

Inventory - DeMar 's OM has to forecast what would be needed. All their services have a seasonal part. Heating is crucial in winter vice versa with chilling. Which means OM should purchase inventory to satisfy seasonal requirements.

Scheduling - Arranging at Demar is critical due to their on demand type product offering. Repair of Domestic plumbing and heating/cooling is critical to the client and therefore should make a difference that the company satisfy the clients need in a expedited manner. A ruptured drinking water tube or overflow situation if not taken care of promptly could result in increases customer stress. The company should schedule their low top priority customers such as tedious maintenance around critical fixes. Assistant service coordinator Janie Walter is insurance quotes as declaring "We are there to fix your A/C on the fourth of July, and it's not a penny extra. When our opponents won't get out of bed, we'll be there!"

Maintenance and well-timed service of the machines are the most important thing required to ensure they perm when needed. Because of their 24/7 service their maintenance of equipment must be up to standard to reduce downtime that could result in customer dissatisfaction. There may be nothing at all worse than having to tell a customer that they need to come back later to complete the Job.

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