*CASE STUDY*

Adding Value through Quality of Service: Everglo Battery, the premier battery manufacturer and service provider in South Africa, looked back on the development of its marketing strategy in four stages. Each had been signalled by advancing the concepts of what is meant by quality of service.

Stage 1: The introduction of sealed lead-acid battery for use in mining applications. The market capturing strategy was to keep the price as low as possible.

Stage 2: This stage saw the industry reaction to customer service: the addition of warranty and replacement of defective products, and quality assurance (QA) of design and manufacturing processes.

Stage 3: This stage recognized the need to go much further in terms of customer service. A whole suite of additional services had been conceived with a view to adding value. Breakdowns were fixed at short notice by means of field service engineers. Price lists were simplified by including peripheral equipment. In a proactive move, Everglo introduced charts and advice about the application of battery products in general. Parts and service in the field were upgraded to a 24-hour, back-up service. Despite having reached a pre-eminent position in mining power supply, Everglo recognized that each year the customer expectations were increasing, and competitors added more services to their basic products too. Stage 4: A new strategy was conceived to take Everglo into a position that competitors would find even more difficult to follow. The new strategy was coined Batman (Battery Management) for life. The aim was nothing less than a total, customer-oriented product management service that provides power for life. The supplier takes over the task of managing the customers assets, including problem identification, training and management. The objective of Batman is to look at the product the way the customer does, performing best at what the customer values most rather than at what the supplier values most.

Answer the following Questions:

Question 1: Which functional attributes of customer service is Everglo most focusing on?

Question 2: Draw Everglos conceptual model of service quality that identifies the service gaps?

Question 3: As a competitor to Everglo, what would be your options in response to Everglos latest moves?