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Customer Benefit Package

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Ari Garnica

on 31 July 2015

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Transcript of Customer Benefit Package

The A-Team

Ari Garnica
Bader Almesned
Lauri Lockwood

Customer Benefit Package
Breakfast Menu
Variant: Free Wi-Fi
In addition to family-friendly, low-cost meals and speedy service, they offer Wi-Fi so you can browse the Internet or get work done while you eat . This peripheral makes the decision to go there seem much more valuable in terms of time saved and is a departure from the regular CBP. This variant was added to appeal to a wider market and actually increases per visit spending.[1]
A customer benefit package is a set of product or service features -- some tangible, others intangible –- that the customer is aware of, pays for, uses or experiences. A CBP makes a good or service stand out as providing a specific value to its customers and enhances what they receive from it. This benefit can either be real or perceived.
(Collier and Evans, OM4 9)

A CBP is composed of a primary good and/or service combined with peripheral goods and/or services. The
or "core" offering is what attracts customers and responds to their basic needs. Peripheral goods and services add
and help differentiate it to give it a comparative advantage. (Collier and Evans, OM5-1 13) To design an effective CBP a business needs to have an in-depth understanding of both their customers' needs and their specific target markets.

Example of the CBPs
of 3 Fast Food Restaurants
In our analysis of Customer Benefit Packages, we chose to focus on three fast food restaurants that offer burgers and fries as their primary product.

We looked at the CBPs of McDonald's, Baker's
and Sonic. By understanding their unique histories, missions, strategies, and competitive priorities, we are able to more accurately assess how they formed their customer benefit package and continue to evolve in order to respond to market and consumer trends.
2 Drive Thru Windows
Peripheral Service
Many McDonald's have two drive-through lanes to decrease wait time and to increase the volume of customers served. This may be a good idea because McDonald's locations are in high-traffic areas. In keeping with this fast service they guarantee wait times of 60 seconds or less from 12 - 1 p.m.
Baker's Drive-Thru
Baker's Drive-Thru is a chain of fast-food restaurants in the Inland Empire. Bakers was founded by Neal Baker here in San Bernandino in 1952. His vision was to offer great variety of food, great value and awesome customer service to the residents of San Bernandino and Riverside counties.The first Baker’s was a hamburger stand, but as the company grew and more stores were opened, the concept shifted to a drive-through concept, hence the name, Baker’s Drive Thru. By 1955, Baker's became a standout in the industry as an innovator in creating "America’s First Twin Kitchen operation" where they would order the primary product burgers and fries, or opt for Mexican entrées.
Baker's competitive priorities are drive thru speed and while maintaining variety at a great value for its community members. They are commited to the communities they serve and show it by steering their menu options to suit their needs and contributing through philanthropic activities.
Variant: Twin Kitchens
By 1955, the company added a variant to their options "America’s First Twin Kitchen" operation, which offers both American and Mexican entrées – a concept that quickly caught on. The Twin Kitchen offers customers the choice of American (burgers and fries) or Mexican cuisine (tacos, quesadillas, burritos, etc.). They carry this through to the sides as well. Instead of just French fries, there are five other sides on the menu: a rice cup, a bean cup, a side salad, chips and salsa and chili. There’s even variety in the condiments. This variant is very unique among the industry and has become part of their regular CBP over the years.
Deal of the Day Peripheral Service
In 1995, Baker’s created its website, www.bakersdrivethru.com, which offered special coupons available only to online visitors. Today, Baker's has a "Daily Deal" that is a big draw. The specials are posted daily on the company's Facebook, Instagram, Twitter, as well as their original website and feature one item each day at a greatly reduced price. Some of our classmates say they eagerly await each day’s Deal of the Day coupon post.

"About Us | Baker's Drive Thru." Bakers Drive Thru. N.p., n.d. Web.
Vegetarian Menu
Peripheral Good/Service
In 1995, Mr. Baker the founder, acknowledged the fact that in Loma Linda there is a predominance of Seventh Day Adventists, who are largely vegetarian. He introduced an array of vegetarian options which created a third menu at Baker's. The special menu is now available at twenty-one Baker’s locations and is called simply, “The Vegetarian Kitchen.” This is a peripheral service that adds value for a growing number of vegetarians who now have expanded options in fast food.

SONIC was founded by Troy Smith Sr. in 1953. Originally, it was a hamburger and root beer stand named Top Hat Drive-In in Shawnee, Okla. Smith’s mission was to become “America’s most loved restaurant brand.” The company broke new ground by using curbside speakers that allowed customers to place food orders without ever leaving their cars. “This technology spawned the slogan “Service at the Speed of Sound” and that slogan prompted Smith to change the name of the restaurant to SONIC in 1959.
SONIC sets itself apart by the experience it offers customers. There are not many restaurants around anymore where patrons can be served without having to leave their car. Apart from the extensive menu it offers a unique variety of drink options, ranging from the regular sodas you can get anywhere else to creating your own drink by asking for add-in flavors. Because of their unique drive-in experience they are able to offer options that a typical drive through burger place wouldn't because of time considerations.

The car hops are one of the truly unique things about SONIC. Most, though not all, of the car hops deliver the food on roller skates. During training, in addition to learning about the food and procedures at the drive-in, new servers are taught how to safely deliver food on roller skates. Each customer also receives a mint with their purchase: “a tradition started by company founder Troy Smith Sr. to remind customers they are worth a mint at SONIC.”

According to one Sonic franchisee, car hops are the secret to success. “Our customers have stated consistently in survey results that they really enjoy the novelty of the skaters …. So I guess that explains the fact that: Drive-ins who skate on a consistent basis see significantly higher annual sales volumes than drive-ins that don’t!”



'50s diner experience Variant
The experience starts when you pull onto the lot and park under a covered stall. Customers then check out the menu boards posted in each stall and order via a retro speaker. As they sit in their car and wait for their meal, they can hear the oldies music (frequently doo-wap) that plays over the loudspeakers. In fairly short order, car hops on roller skates arrive and deliver your meal through your car window.
Group Communications

SONIC offers a unique variety of drink options, ranging from the regular sodas you can get anywhere to Lime-Aids (six varieties available, including diet) to slushes to SONIC energy drinks, to hand-crafted sodas (such as a Blackberry & Pineapple Splash) to shakes. And of course you can create your own drink by asking for a flavor add-in, so your Coke becomes a Vanilla Coke or a Chocolate Coke, reminiscent of the 50s diners. All drinks are served over SONIC’s crushed ice.

Value through CBP

To summarize, the CBP is a combination of peripheral goods and services that add value to the primary product.

Good managers need to understand the benefits their CBP has and the customers place on specific attributes. They will use peripheral goods and services to differentiate their CBP from that of another company that offers a similar primary good or service, and win the customer's business. If they are able to outperform their competitor they have a competitive advantage.

In addition, clearly defining the CBP can be beneficial for the business because it outlines their servicescape and product offerings that can serve as a guide for employees who need to sell the product or perform services.
is an attribute that is different from the ordinary or overall CBP theme. It can come in the form of a good or service, or can be the process by which the product is delivered or assembled for the customer through service and job design.

McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily and has a presence in 119 countries. It was founded as a barbeque restaurant in San Bernardino, CA in 1940 and by 1948 it reorganized itself as a hamburger stand that used production line techniques.[1] In 1955 it started a franchise model and today many of the foods are prepared in processing plants and then distributed to their stores. [2] Mission: "To be the best quick service restaurant experience". They go on to say that this means providing quality, fast service, and a great value for money.[3] Their strategic position and competitive priority is focused on being a family-friendly, low-cost restaurant that differs from the position of some of their competitors, such as Burger King which is geared toward young adult males as their target market.[4] Primarily, they position themselves as a family-friendly, low-cost restaurant with a narrow scope for a customer base and a low-cost strategy but in recent years they have tried to appeal to more customers through healthier and more varied options and services.


1. Our History." :: McDonalds.com. N.p., n.d. Web.
2. Peterson, Hayley. "REVEALED: Here's The Inside Of A McDonald's Hamburger Factory." Business Insider. Business Insider, Inc, 13 Oct. 2014.
3. "Our Ambition." McDonald's Corporate Mission. N.p., n.d. Web.
4. McDonald's Positioning - McDonald's Franchise Strategy."
McDonald's CBP
Primary Product
Low Cost
Burgers & Fries
Primary Service:
Quick Customer
2 Drive-thru windows
Play area
Menu offerings tailored by location
$1 ALL size Drinks & Free refills
Happy Meal Toys
Variant: McCafe Menu
Peripheral good/service
Baker's Drive-Thru CBP
Primary Product
Low Cost
Burgers & Fries
Primary Service:
Drive Through
Deal of the
Primary Product
Burgers & Fries
Primary Service:
Dine In Car
Eat In
Wacky Pack Kids Meal
Wide Variety
of condiments
1. Big Chain Restaurant Trends: Hot Menu Items, Hot Marketing Strategies | TIME.com." Business Money Big Chain Restaurant Trends Hot Menu Items Hot Marketing Strategies N.p., n.d. Web.
A breakfast menu is a peripheral service for McDonald's, a burger restaurant. They first added the Egg McMuffin in 1972 when market research pointed out that consumers wanted a fast food breakfast. [1] Today, the burger chain gets 20% of its revenue from breakfast sales, so it has become one of its main peripheral services/goods.[2]

1. "A Brief History of McDonald's." Company. N.p., n.d. Web.
2.Peterson, Hayley. "4 Ways McDonald's Is Desperately Marketing McCafe Coffee." Business Insider. Business Insider, Inc,
2. About McDonald's Positioning - McDonald's Franchise Strategy." N.p., n.d. Web.
In an effort to compete with Starbucks who is scooping up their breakfast customers, McDonald's is "slowly moving toward becoming more like a coffee shop, selling breakfast pastries and expanding its morning menu." They offer this extended coffee menu all day, which directly competes with coffee chains but adds value for working moms who might not be able to stop by the coffee shop for their much need caffeine.
Peterson, Hayley. "4 Ways McDonald's Is Desperately Marketing McCafe Coffee." Business Insider. Business Insider, Inc

"About Us | Baker's Drive Thru." Bakers Drive Thru. N.p., n.d. Web.

Car Hops
Peripheral Service

"About Us | Baker's Drive Thru." Bakers Drive Thru. N.p., n.d. Web.

"About Us | Baker's Drive Thru." Bakers Drive Thru. N.p., n.d. Web.
Ultimate Drink Stop
Peripheral Good
Collier, David A., and James R. Evans. Om 4. Mason, OH: SOUTH-WESTERN Cengage Learning, 2013. Print.
Collier, David A., and James R. Evans. OM5-1. Mason, OH: Cengage Learning, 2016. PPT.
Collier, David A., and James R. Evans. Om 4. Mason, OH: SOUTH-WESTERN Cengage Learning, 2013. Print.
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