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S4: Developing Service Products: Core and Supplementary Elements

Learning Coach

Dr. Mohan Agarwal Chief Mentor, Multinational Business Academy, USA, Canada, Singapore, Dubai, India www. Email:

1. 2. 3. 4. 5. Recap Designing a Service Product The Flower of Service Branding Service Products and Experiences New Service Development

Recap: Focus Strategies for Services

Integration of Core Product, Supplementary Elements and Delivery Process

The Flower of Service

Information Payment Billing

Consultation Order-Taking

Exceptions Safekeeping


Facilitating elements Enhancing elements

Facilitating Services Information

Facilitating Services Order-Taking

Facilitating Services Billing

Facilitating Services Payment

Enhancing Services Consultation

Enhancing Services Hospitality

Enhancing Services Safekeeping

Enhancing Services Exceptions

Spectrum of Branding Alternatives

Source: derived from Aaker and Joachimsthaler

Example: BA Sub-brands
Four intercontinental offerings:
First (deluxe service) Club World (business class) World Traveller Plus (premier economy class) World Traveller (economy class)

Two intra-European offerings:

Club Europe (business class)

Euro-Traveller (economy class)

UK Domestic (economy class between London and major British cities

Offering A Branded Experience

The brand promise or value proposition is not a tag line, an icon, or a color or a graphic element, although all of these may contribute. It is, instead, the heart and soul of the brand.

Don Schultz

A Hierarchy of New Service Categories

1. Style changes- Visible changes in service design or scripts 2. Service improvements- Modest changes in the performance of current products 3. Supplementary service innovations 4. Addition of new or improved facilitating or enhancing elements 5. Process-line extensions
Alternative delivery procedures or Product-line extensions Additions to current product lines

5. Major process innovations

Using new processes to deliver existing products with added benefits

6. Major service innovations

New core products for previously undefined markets