You’ll never have to hammer in anot

You’ll never have to hammer in another peg in your lìe
The opening vignette illustrates a service innovation where both the core service (the very nature of
the accommodation and experience) and supplementary elements (facilities such as hot water, in-tent
massage and facials are available in or near the tent) have been drastically changed. Paperbark Camp was
designed with a market segment in mind—consumers who want the thrill of being outdoors but with
some of the conveniences and luxuries of home.
In this chapter we explore what is meant by the service product concept, and discuss the distinction
between core, facilitating and supplementary services; how a service product strategy is formulated
that provides value to the consumer; and the importance of service brands as a key part of any strategy.
To understand the nature of services better, it’s useful to distinguish between the core product and the
supplementary elements that facilitate its use and enhance its value for customers. Designing a service
product is a complex task that requires an understanding of how the core and supplementary services
should be combined, sequenced, delivered and scheduled to create a value proposition that meets the
needs of target segments.
What is a service product?
When we buy consumer goods such as breakfast cereal, MP3s or soft drinks, for example, the
product represents the sum of our purchase. With other goods, such as computers, cars and stereo
systems, however, we often acquire something more in the form of a warranty, after-sales service
or optional extras. In fact most manufacturing and service businesses offer their customers a
package involving delivery of not only the core offering but also a variety of service-related
activities. It is these extra, supplementary value-adding services that provide the differentiation
that separates successful fi rms from less successful ones. This strategy of surrounding the core
product with supplementary value-adding services is known in product marketing as the process
of creating the augmented product.