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DEVELOP NEW PRODUCTS
AND SERVICES
D1.HCS.CL6.07
Slide 1DEDY WIJAYANTO
Subject elements
This unit comprises four elements:
• Analyse markets
• Evaluate market trends in food production and/or food
and beverage service
• Create products or services based on market analysis
and within budgetary constraints
• Monitor sales performance of products
and services
Slide 2DEDY WIJAYANTO
Assessment
Assessment for this unit may include:
• Oral questions
• Written questions
• Work projects
• Workplace observation of practical skills
• Practical exercises
• Formal report from supervisor
Slide 3DEDY WIJAYANTO
Element 1:
Analyse markets
Slide 4DEDY WIJAYANTO
Analyse markets
Performance criteria for this element are:
• Target markets are identified in accordance with
enterprise marketing and merchandising policies
• Analyse market competition
• Client requirements are monitored informally in order to
evaluate market trends and client needs
• New products and services are identified
Slide 5DEDY WIJAYANTO
Analyse markets
Performance criteria for this element are:
• Opportunities to improve sales and services are
identified
• Product and service range is monitored to identify the
demand for individual items and seasonal variations
• Product and service range is planned
Slide 6DEDY WIJAYANTO
Need for new products and services
Need for new products and services
It is normal practice for businesses, regardless of industry,
to develop and introduce new products and services.
This may include:
• Improvements to existing offerings
• Complete changes of direction
Slide 7DEDY WIJAYANTO
Need for new products and services
Need for new products and services
New products and services will only be successful if:
• It is unique when compared with competitor’s offerings
• It provides value for money
• The customer views the product or
service as valuable in their eyes
Slide 8DEDY WIJAYANTO
Need for new products and services
Examples of new products and services
What have been successful new products and services
that have entered:
• Generally
• The hospitality industry specifically?
Slide 9DEDY WIJAYANTO
Change
A rolling stone gathers no moss!
Slide 10DEDY WIJAYANTO
Change
• What is change?
• Why is it important?
• What influences change
Change is inevitable
Slide 11DEDY WIJAYANTO
Continuous improvement
• What is it?
• Why is it important?
• Who is responsible for implementing it?
Slide 12DEDY WIJAYANTO
Continuous improvement
• Regardless of their visit it is important that the customer
receives a ‘quality offering’
• A quality offering is being able to use a combination of
products and services
• This combined offering, at a minimum, must meet the
customer’s:
 Needs
 Expectations
Slide 13DEDY WIJAYANTO
Continuous improvement
Need for continuous improvement
Continuous improvement and change focuses on improving:
• Products
• Services
Slide 14DEDY WIJAYANTO
Continuous improvement
Products and Services
• Which is more important – product or service?
• What do these include?
• Which aspects can be improved?
Slide 15DEDY WIJAYANTO
The customer
• The customer is............
Slide 16DEDY WIJAYANTO
Market segments
Identify market segments
Any hospitality organisation, like in any business in any industry,
cannot be everything to everyone.
It must:
• Break down the potential audience into
segments with similar characteristics
• Choose those segments they
believe will be the focus of their efforts
Slide 17DEDY WIJAYANTO
Market segments
Generic market segments
• Age
• Social background
• Economic background
• Cultural background
• Special interests
• Physical and mental abilities
• Dietary needs
Slide 18DEDY WIJAYANTO
Market segments
Hospitality market segments
• Business
• Leisure
• Religious
• Sporting
Slide 19DEDY WIJAYANTO
Market segments
Tourism market segments
• Outbound Tourists
• Inbound Tourists
• Domestic Tourists
• International Tourists
Slide 20DEDY WIJAYANTO
Target market segments
Identify target market segments
What are the key target segments for:
• Resorts
• City hotels
• Budget accommodation
• Stand alone restaurants
• Fine dining restaurant in a hotel
• Corner bar
• Coffee shop?
Slide 21DEDY WIJAYANTO
Target market segments
Benefits of establishing target market segments
The analysis and collection of information in relation to different
target market segments will guide:
• Products and services offered
• Prices charged
• Where advertisements are placed
• How advertisements are targeted
• Staff required
Slide 22DEDY WIJAYANTO
Analyse market competition
Importance of analysing the market?
• What do you want to analyse?
• What information do you seek?
• Where do you get this information?
Slide 23DEDY WIJAYANTO
Analyse market competition
What is market analysis?
• Market analysis provides us with the information necessary to
understand what can cause changes in our operational
environment
• A prime intent of this activity is to gain a more
insightful and detailed view of the organisation
and where it sits in the overall business and
other settings
• Helps identify ‘current market situation’
Slide 24DEDY WIJAYANTO
Current market situation
Market situation
• Total market characteristics – size, growth, trends
• Customer needs, perceptions and buying behaviour
• Products – service characteristics
• Prices
• Customer service and distribution
• Channels
• Communication
Slide 25DEDY WIJAYANTO
Current market situation
Competitive situation
• Industry structure
• The geographic market in which they compete
• Their current marketing performance
• Their competitive position
• Strengths and weaknesses, and vulnerabilities of each
significant competitor
• Their objectives and competitive strategies
• Industry profitability
Slide 26DEDY WIJAYANTO
Current market situation
Product situation
• For each product/service that the organisation offers, sales,
profits, contribution margins and growth should be
displayed
• Product lifecycle and expected demand over the product’s
life should be considered
• Growth of the product/service should be
contrasted with total market growth
Slide 27DEDY WIJAYANTO
Situation Analysis
Analyse the environments
It is vital to understand what can cause changes in our
operational environment.
It is important that managers analyse what is happening both:
• Outside the business (external environment)
• Inside the business (internal environment)
Slide 28DEDY WIJAYANTO
Analyse the environments
SWOT analysis
• Strengths – what the business does well
• Weaknesses – what the business can improve upon
• Opportunities – where the business can improve or take
advantage
• Threats – where the business may become
disadvantaged, weakened or susceptible
Slide 29DEDY WIJAYANTO
Analyse the environments
Analysis of external environment
• Competitors
• Economic climate
• Customer preferences
• E-business
Slide 30DEDY WIJAYANTO
Analyse the environments
Analysis of external environment
• Environment
• Technology
• Political issues
• Legal issues
What other external influences exist?
Slide 31DEDY WIJAYANTO
Analyse the environments
Analysis of internal environment
• Environment
• Organisational structure
• Products
• Services
• Equipment
• Marketing
Slide 32DEDY WIJAYANTO
Customer focus
• Before we can tailor our products and services to provide an
offering that the customer wants, we first need to find out
what they actually want
• Many businesses make the mistake of providing an offering
they THINK the guest wants, but what is offered doesn’t meet
their needs
Slide 33DEDY WIJAYANTO
Customer focus
• Who are your customers?
• What are the needs of your customers?
• How do you identify their needs?
Slide 34DEDY WIJAYANTO
Customer needs
Generic needs
• Value for money
• ‘Offering’ reflecting what was advertised
• Expectations met/exceeded
• To feel respected
• To feel welcomed
• To be served by friendly staff
Slide 35DEDY WIJAYANTO
Customer needs
Generic needs
• To be dealt with in a prompt and courteous manner
• To receive assistance when necessary
• To be in comfortable, clean surroundings
• To feel remembered and recognised
• To be heard and understood
Slide 36DEDY WIJAYANTO
Customer needs
Specific needs
What are the specific needs of your markets?
• Business
• Women
• Family
• Leisure
• Elderly
• Others
Slide 37DEDY WIJAYANTO
Expectations
Expectations come from:
• The company’s image or reputation in the market
• Past visits
• Advertisements and promotional messages
• Competing hotels
• Industry standards
• Comments from family, friends and colleagues
• Price charged for the offering
Slide 38DEDY WIJAYANTO
Identify new products and services
As mentioned, an ongoing process for a hotel to stay ‘fresh,
unique and in demand’ is to identify new products and services
to attract and maintain customers.
In hospitality the product/service offering is combined to meet
customer needs and consists of the following elements:
• A tangible product or products
• Environment
• Services
Slide 39DEDY WIJAYANTO
Identify new products and services
Products
• What is classified as a product?
• What are examples of products in the hospitality
environment?
Slide 40DEDY WIJAYANTO
Identify new products and services
Services
• What is classified as a service?
• Who provides the service?
• What are examples of services in the
hospitality environment?
Slide 41DEDY WIJAYANTO
Identify new products and services
Characteristics of services
Pure services are activities or benefits characterised by:
• Intangibility
• Inseparability
• Perishability
• Variability
Slide 42DEDY WIJAYANTO
Opportunities to improve sales and
services
Need to identify improvement opportunities
The need to identify opportunities for improvement is especially
important when new products and services are introduced as
new opportunities may become apparent as they are
implemented into the marketplace:
• How can you do this?
Slide 43DEDY WIJAYANTO
Opportunities to improve sales and
services
Ways to identify improvement opportunities
• Observing what occurs in the workplace
• Develop and use a checklist to guide what you observe
• Involve workers in your observations
• Analysing documentation
Slide 44DEDY WIJAYANTO
Opportunities to improve sales and
services
Ways to identify improvement opportunities
• Being advised by management/owners
• Monitoring the external business environment
• Making ‘improvement/continuous improvement (CI)’ a
standing topic in every staff meeting
• Involving staff
Slide 45DEDY WIJAYANTO
Generate ideas
Generating ideas
• How would you generate ideas?
• Why is it important to involve staff in the process?
Slide 46DEDY WIJAYANTO
Generate ideas
Common techniques to generate ideas include:
• Talking to colleagues and supervisors
• Looking at what happens in other venues
• Contacting industry peak bodies
• Reading industry literature
• Conduct internet research
• Using creative thinking techniques
Slide 47DEDY WIJAYANTO
Generate ideas
Creative thinking techniques
• Brainstorming
• Visualising
• Making associations
• Lateral thinking
• Six thinking hats
Slide 48DEDY WIJAYANTO
Generate ideas
Use relevant knowledge
In addition to creative thinking ideas, there is always the need
to apply relevant knowledge to a situation where workplace
improvements are being considered:
• Technical knowledge
• Service-based knowledge
• Information from different work areas
• Information from colleagues
Slide 49DEDY WIJAYANTO
Review ideas
Review ideas for relevance and practicality
When you have captured ideas and information relating to them
your next step is to review and evaluate these ideas.
Slide 50DEDY WIJAYANTO
DEDY WIJAYANTO 51
deddywijayanto@stptrisakti.ac.id
See in part 2

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Part 1 new products and services

  • 1. DEVELOP NEW PRODUCTS AND SERVICES D1.HCS.CL6.07 Slide 1DEDY WIJAYANTO
  • 2. Subject elements This unit comprises four elements: • Analyse markets • Evaluate market trends in food production and/or food and beverage service • Create products or services based on market analysis and within budgetary constraints • Monitor sales performance of products and services Slide 2DEDY WIJAYANTO
  • 3. Assessment Assessment for this unit may include: • Oral questions • Written questions • Work projects • Workplace observation of practical skills • Practical exercises • Formal report from supervisor Slide 3DEDY WIJAYANTO
  • 5. Analyse markets Performance criteria for this element are: • Target markets are identified in accordance with enterprise marketing and merchandising policies • Analyse market competition • Client requirements are monitored informally in order to evaluate market trends and client needs • New products and services are identified Slide 5DEDY WIJAYANTO
  • 6. Analyse markets Performance criteria for this element are: • Opportunities to improve sales and services are identified • Product and service range is monitored to identify the demand for individual items and seasonal variations • Product and service range is planned Slide 6DEDY WIJAYANTO
  • 7. Need for new products and services Need for new products and services It is normal practice for businesses, regardless of industry, to develop and introduce new products and services. This may include: • Improvements to existing offerings • Complete changes of direction Slide 7DEDY WIJAYANTO
  • 8. Need for new products and services Need for new products and services New products and services will only be successful if: • It is unique when compared with competitor’s offerings • It provides value for money • The customer views the product or service as valuable in their eyes Slide 8DEDY WIJAYANTO
  • 9. Need for new products and services Examples of new products and services What have been successful new products and services that have entered: • Generally • The hospitality industry specifically? Slide 9DEDY WIJAYANTO
  • 10. Change A rolling stone gathers no moss! Slide 10DEDY WIJAYANTO
  • 11. Change • What is change? • Why is it important? • What influences change Change is inevitable Slide 11DEDY WIJAYANTO
  • 12. Continuous improvement • What is it? • Why is it important? • Who is responsible for implementing it? Slide 12DEDY WIJAYANTO
  • 13. Continuous improvement • Regardless of their visit it is important that the customer receives a ‘quality offering’ • A quality offering is being able to use a combination of products and services • This combined offering, at a minimum, must meet the customer’s:  Needs  Expectations Slide 13DEDY WIJAYANTO
  • 14. Continuous improvement Need for continuous improvement Continuous improvement and change focuses on improving: • Products • Services Slide 14DEDY WIJAYANTO
  • 15. Continuous improvement Products and Services • Which is more important – product or service? • What do these include? • Which aspects can be improved? Slide 15DEDY WIJAYANTO
  • 16. The customer • The customer is............ Slide 16DEDY WIJAYANTO
  • 17. Market segments Identify market segments Any hospitality organisation, like in any business in any industry, cannot be everything to everyone. It must: • Break down the potential audience into segments with similar characteristics • Choose those segments they believe will be the focus of their efforts Slide 17DEDY WIJAYANTO
  • 18. Market segments Generic market segments • Age • Social background • Economic background • Cultural background • Special interests • Physical and mental abilities • Dietary needs Slide 18DEDY WIJAYANTO
  • 19. Market segments Hospitality market segments • Business • Leisure • Religious • Sporting Slide 19DEDY WIJAYANTO
  • 20. Market segments Tourism market segments • Outbound Tourists • Inbound Tourists • Domestic Tourists • International Tourists Slide 20DEDY WIJAYANTO
  • 21. Target market segments Identify target market segments What are the key target segments for: • Resorts • City hotels • Budget accommodation • Stand alone restaurants • Fine dining restaurant in a hotel • Corner bar • Coffee shop? Slide 21DEDY WIJAYANTO
  • 22. Target market segments Benefits of establishing target market segments The analysis and collection of information in relation to different target market segments will guide: • Products and services offered • Prices charged • Where advertisements are placed • How advertisements are targeted • Staff required Slide 22DEDY WIJAYANTO
  • 23. Analyse market competition Importance of analysing the market? • What do you want to analyse? • What information do you seek? • Where do you get this information? Slide 23DEDY WIJAYANTO
  • 24. Analyse market competition What is market analysis? • Market analysis provides us with the information necessary to understand what can cause changes in our operational environment • A prime intent of this activity is to gain a more insightful and detailed view of the organisation and where it sits in the overall business and other settings • Helps identify ‘current market situation’ Slide 24DEDY WIJAYANTO
  • 25. Current market situation Market situation • Total market characteristics – size, growth, trends • Customer needs, perceptions and buying behaviour • Products – service characteristics • Prices • Customer service and distribution • Channels • Communication Slide 25DEDY WIJAYANTO
  • 26. Current market situation Competitive situation • Industry structure • The geographic market in which they compete • Their current marketing performance • Their competitive position • Strengths and weaknesses, and vulnerabilities of each significant competitor • Their objectives and competitive strategies • Industry profitability Slide 26DEDY WIJAYANTO
  • 27. Current market situation Product situation • For each product/service that the organisation offers, sales, profits, contribution margins and growth should be displayed • Product lifecycle and expected demand over the product’s life should be considered • Growth of the product/service should be contrasted with total market growth Slide 27DEDY WIJAYANTO
  • 28. Situation Analysis Analyse the environments It is vital to understand what can cause changes in our operational environment. It is important that managers analyse what is happening both: • Outside the business (external environment) • Inside the business (internal environment) Slide 28DEDY WIJAYANTO
  • 29. Analyse the environments SWOT analysis • Strengths – what the business does well • Weaknesses – what the business can improve upon • Opportunities – where the business can improve or take advantage • Threats – where the business may become disadvantaged, weakened or susceptible Slide 29DEDY WIJAYANTO
  • 30. Analyse the environments Analysis of external environment • Competitors • Economic climate • Customer preferences • E-business Slide 30DEDY WIJAYANTO
  • 31. Analyse the environments Analysis of external environment • Environment • Technology • Political issues • Legal issues What other external influences exist? Slide 31DEDY WIJAYANTO
  • 32. Analyse the environments Analysis of internal environment • Environment • Organisational structure • Products • Services • Equipment • Marketing Slide 32DEDY WIJAYANTO
  • 33. Customer focus • Before we can tailor our products and services to provide an offering that the customer wants, we first need to find out what they actually want • Many businesses make the mistake of providing an offering they THINK the guest wants, but what is offered doesn’t meet their needs Slide 33DEDY WIJAYANTO
  • 34. Customer focus • Who are your customers? • What are the needs of your customers? • How do you identify their needs? Slide 34DEDY WIJAYANTO
  • 35. Customer needs Generic needs • Value for money • ‘Offering’ reflecting what was advertised • Expectations met/exceeded • To feel respected • To feel welcomed • To be served by friendly staff Slide 35DEDY WIJAYANTO
  • 36. Customer needs Generic needs • To be dealt with in a prompt and courteous manner • To receive assistance when necessary • To be in comfortable, clean surroundings • To feel remembered and recognised • To be heard and understood Slide 36DEDY WIJAYANTO
  • 37. Customer needs Specific needs What are the specific needs of your markets? • Business • Women • Family • Leisure • Elderly • Others Slide 37DEDY WIJAYANTO
  • 38. Expectations Expectations come from: • The company’s image or reputation in the market • Past visits • Advertisements and promotional messages • Competing hotels • Industry standards • Comments from family, friends and colleagues • Price charged for the offering Slide 38DEDY WIJAYANTO
  • 39. Identify new products and services As mentioned, an ongoing process for a hotel to stay ‘fresh, unique and in demand’ is to identify new products and services to attract and maintain customers. In hospitality the product/service offering is combined to meet customer needs and consists of the following elements: • A tangible product or products • Environment • Services Slide 39DEDY WIJAYANTO
  • 40. Identify new products and services Products • What is classified as a product? • What are examples of products in the hospitality environment? Slide 40DEDY WIJAYANTO
  • 41. Identify new products and services Services • What is classified as a service? • Who provides the service? • What are examples of services in the hospitality environment? Slide 41DEDY WIJAYANTO
  • 42. Identify new products and services Characteristics of services Pure services are activities or benefits characterised by: • Intangibility • Inseparability • Perishability • Variability Slide 42DEDY WIJAYANTO
  • 43. Opportunities to improve sales and services Need to identify improvement opportunities The need to identify opportunities for improvement is especially important when new products and services are introduced as new opportunities may become apparent as they are implemented into the marketplace: • How can you do this? Slide 43DEDY WIJAYANTO
  • 44. Opportunities to improve sales and services Ways to identify improvement opportunities • Observing what occurs in the workplace • Develop and use a checklist to guide what you observe • Involve workers in your observations • Analysing documentation Slide 44DEDY WIJAYANTO
  • 45. Opportunities to improve sales and services Ways to identify improvement opportunities • Being advised by management/owners • Monitoring the external business environment • Making ‘improvement/continuous improvement (CI)’ a standing topic in every staff meeting • Involving staff Slide 45DEDY WIJAYANTO
  • 46. Generate ideas Generating ideas • How would you generate ideas? • Why is it important to involve staff in the process? Slide 46DEDY WIJAYANTO
  • 47. Generate ideas Common techniques to generate ideas include: • Talking to colleagues and supervisors • Looking at what happens in other venues • Contacting industry peak bodies • Reading industry literature • Conduct internet research • Using creative thinking techniques Slide 47DEDY WIJAYANTO
  • 48. Generate ideas Creative thinking techniques • Brainstorming • Visualising • Making associations • Lateral thinking • Six thinking hats Slide 48DEDY WIJAYANTO
  • 49. Generate ideas Use relevant knowledge In addition to creative thinking ideas, there is always the need to apply relevant knowledge to a situation where workplace improvements are being considered: • Technical knowledge • Service-based knowledge • Information from different work areas • Information from colleagues Slide 49DEDY WIJAYANTO
  • 50. Review ideas Review ideas for relevance and practicality When you have captured ideas and information relating to them your next step is to review and evaluate these ideas. Slide 50DEDY WIJAYANTO

Editor's Notes

  1. Trainer to introduce himself/herself to the class.
  2. Trainer advises this Unit comprises four Elements, as listed on the slide explaining: • Each Element comprises a number of Performance Criteria which will be identified throughout the class and explained in detail • Trainees can obtain more detail from their Trainee Manual • At times the course presents advice and information about various protocols but where their workplace requirements differ to what is presented, the workplace practices and standards, as well as policies and procedures must be observed.
  3. Trainer advises that assessment for this Unit may take several forms all of which are aimed at verifying they have achieved competency for the Unit as required. Trainer indicates the methods of assessment that will be applied to them for this Unit.
  4. Introduce topic. Class Activity – General Discussion Ask general questions: What is a market? What does ‘analyse’ mean? Why do you do it? How do you do it? What information are you trying to collect?
  5. Trainer identifies the Performance Criteria for this Element, as listed on the slide.
  6. Trainer identifies the Performance Criteria for this Element, as listed on the slide.
  7. Class activity – Questions Why does change take place?
  8. Class activity – Questions How can you make a product or service ‘unique’? What is value?
  9. Class activity – Questions Discuss new products and services. Why have they been successful?
  10. Class activity – Questions Why is it important that change takes place? What happens if you don’t change?
  11. Class activity – Discussion What causes change? Answer the questions in the slide.
  12. Class activity – Discussion Answer the questions in the slide
  13. Class activity – Discussion How can you identify needs? How can you identify expectations?
  14. Class activity – Discussion Why is this important?
  15. Class activity – Discussion Answer the questions in the slide
  16. Class activity – Discussion Who are customers in a hospitality business?
  17. Class activity – Discussion What are the different market segments for a hospitality business? What are the benefits of segmenting the market?
  18. Class activity – Discussion How else does a hotel segment the market?
  19. Class activity – Discussion What further market segments are contained within these?
  20. Class activity – Discussion What further market segments are contained within these?
  21. Class activity – Discussion Discuss possible target market segments for the different businesses identified in the slide.
  22. Class activity – Discussion What are other benefits?
  23. Class activity – Discussion Discuss questions in the slide.
  24. Class activity – Discussion Why is this important?
  25. Class activity – Discussion What else would you like to know about the potential market?
  26. Class activity – Discussion What else would you like to know about the potential market?
  27. Class activity – Discussion What else would you like to know about the potential market?
  28. Class activity – Discussion Why is it important to analyse the markets? What do you want to analyse outside the business? What do you want to analyse inside the business?
  29. Class activity – Discussion and Show Show a template of a SWOT Analysis This will be the template they can use for their Work Project.
  30. Class activity – Discussion What do you want to know about each? How can you find this information?
  31. Class activity – Discussion What do you want to know about each? How can you find this information?
  32. Class activity – Discussion What do you want to know about each? How can you find this information?
  33. Class activity – Discussion What can we find out what the customer REALLY wants?
  34. Class activity – Discussion Identify needs of customers. Concentrate of each target market segment.
  35. Class activity – Discussion Discuss these needs? How can you cater to these?
  36. Class activity – Discussion Discuss these needs. How can you cater to these?
  37. Class activity – Discussion What are the needs for each of these customer types? Discuss these needs. How can you cater to these?
  38. Class activity – Discussion Where else do expectations come from?
  39. Class activity – Discussion What do hotels normally introduce more of – products or services? Why?
  40. Class activity – Discussion Discuss the questions in the slide
  41. Class activity – Discussion Discuss the questions in the slide
  42. Class activity – Discussion Discuss these characteristics.
  43. Class activity – Discussion Discuss ways to identify improvement opportunities
  44. Class activity – Discussion Discuss practical ways to implement these suggestions
  45. Class activity – Discussion Discuss practical ways to implement these suggestions
  46. Class activity – Discussion Discuss the questions in the slide
  47. Class activity – Discussion What information can be gathered from each?
  48. Class activity – Discussion What other creative ways can you generate ideas?
  49. Class activity – Discussion Discuss the points in the slide
  50. Class activity – Discussion Why is it important to review ideas for practicality? What do you need to consider?