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DEVELOP NEW PRODUCTS AND
SERVICES
DEDY WIJAYANTO
DEDY WIJAYANTO 1
Part 1
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?
DEDY WIJAYANTO 2
Characteristics of services
Pure services are activities or benefits characterised by:
• Intangibility
• Inseparability
• Perishability
• Variability
DEDY WIJAYANTO 3
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?
DEDY WIJAYANTO 4
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
DEDY WIJAYANTO 5
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
DEDY WIJAYANTO 6
Generate ideas
Generating ideas
• How would you generate ideas?
• Why is it important to involve staff in the process?
DEDY WIJAYANTO 7
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
DEDY WIJAYANTO 8
DEDY WIJAYANTO 9
Creative thinking techniques
• Brainstorming
• Visualising
• Making associations
• Lateral thinking
• Six thinking hats
DEDY WIJAYANTO 10
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 DEDY WIJAYANTO 11
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.
DEDY WIJAYANTO 12
Review ideas for relevance and practicality
This allows you to:
• Make legitimate and rational decisions about the
options which were generated.
• Evaluating the alternatives to determine:
 Which ones remain as viable alternatives
 Which ones should be discarded as
inappropriate
DEDY WIJAYANTO 13
Practicality considerations
• Impact on other existing house protocols, policies and
procedures
• Impact on layout
• Staff ability
• Expected revenue
• Cost
• Impact on service delivery
DEDY WIJAYANTO 14
• Once new products and services have
been identified it is important to identify the
demand for specific items and any
seasonal variations that may affect it
• How can you do this?
DEDY WIJAYANTO 15
DEDY WIJAYANTO 16
Monitor and identify demand for products and
services
Product and service lifecycles
When deciding on the introduction of products and services it is important to understand
how long they will have a positive and profitable impact. Most products and services will
have some lifecycle.
This lifecycle is divided into four stages:
• Market introduction
• Market growth
• Market maturity
• Sales decline
DEDY WIJAYANTO 17
Identifying demand for individual products and services
• Observation
• Conduct a trial run
• Place an advertisement
• Suppliers
• Industry associations
• Journals and articles
• Other hotels in the chain
• Competitors
• Feasibility study
DEDY WIJAYANTO 18
Understand seasonal demand
Ways to identify seasonal demand include:
• Analyse historical data
• Review sales figures
• The level of demand for specific products
and services at different times
• Identify expected peak times
• Identify expected low demand times
DEDY WIJAYANTO 19
Planning product and service range
Once ideas for products and services have been identified
as a concept, further thought must be given as to how it is
to be introduced into the market:
• What are product considerations?
• What are service considerations?
DEDY WIJAYANTO 20
Product considerations
• Product line decisions
• Packaging
• Warranties
• Branding
• Brand rejection
DEDY WIJAYANTO 21
Service considerations
• Intangibility
• Inseparability
• Perishability
• Variability
DEDY WIJAYANTO 22
Element 2:
Evaluate market trends in food production
and/or food and beverage service
DEDY WIJAYANTO 23
Evaluate market trends in food production
and/or food and beverage service
Performance Criteria for this Element are:
• Identify and access information sources on market trends in
food production and/or food and beverage service
• Evaluate market trends for relevance to the
enterprise current and potential markets
• Identify and access relevant information
to assist development of new products
or services
DEDY WIJAYANTO 24
Wine Yard
DEDY WIJAYANTO 25
Understanding trends
Identify and access information sources on market
trends
Understanding trends of the industry is vital in
ensuring that what you are seeking to provide to the
market is not only fresh and relevant but is in demand:
• How can you gather information on industry
trends?
DEDY WIJAYANTO 26
Types of information sources
• Colleagues, supervisors and managers
• Representatives
• Developing your own industry network
• Conferences and seminars
• Product launches
• Trade magazines
DEDY WIJAYANTO 27
DEDY WIJAYANTO 28
Types of information sources
• Hotel school publications
• Newsletters
• Brochures
• Advertisements
• Government bodies
Types of industry statistics and trends
• Industry Statistics
• General industry trends
• Tourism patterns
• Technology
• Leisure time
DEDY WIJAYANTO 29
Types of industry statistics and trends
• Environmental issues
• Discount operators
• Customer demands
• Quality demands
DEDY WIJAYANTO 30
New product and service development
• Every hospitality business conducts product and service
development, whether it's done intentionally or
unintentionally
• This section will explore some of the steps associated
with product and service development
DEDY WIJAYANTO 31
Risks in new product and service
development
• Developing a new product or service first and
hoping it will sell
• Financial risks
• Duplication from competitors
• The time taken to develop new products
or services, particularly in fast moving
industries
DEDY WIJAYANTO 32
Steps in product and service
development
New product or service development process
steps
• Idea generation
• Screening
• Idea evaluation
• Development - technical and commercial
• Commercialisation
DEDY WIJAYANTO 33
Element 3:
Create products or services
based on market analysis and
within budgetary constraints
DEDY WIJAYANTO 34
Create products or services based on
market analysis and within budgetary
constraints
Performance criteria for this element are:
• Incorporate relevant market trends into food service and
menu planning
• Develop products and services to take account of market
trends
• Develop products and services to take
account of enterprise operational constraints
or limitations
• Construct products and services to meet profitability targets
DEDY WIJAYANTO 35
Performance criteria for this element are:
• Incorporate relevant market trends into food service
and menu planning
• Develop products and services to take account of
market trends
• Develop products and services to take
account of enterprise operational constraints
or limitations
• Construct products and services to
DEDY WIJAYANTO 36
Incorporate trends into menu
planning
Types of menus
• Table d’hôte
• À la carte
• Banquet
• Conferences
DEDY WIJAYANTO 37
Types of services
• Breakfast:
 Continental
 English breakfast
 American
 Eastern
 Morning tea
 Brunch
DEDY WIJAYANTO 38
Types of services
• Lunch
• Afternoon tea
• High tea
• Dinner
• Supper
DEDY WIJAYANTO 39
Menu constraints
Menu length
• Cost to maintain each dish on the menu
• Ready availability of ingredients
• Time available to prepare ingredients
DEDY WIJAYANTO 40
Side orders
• Potato dish (hot)
• Green vegetable (hot)
• Salad (cold)
Desserts
• Chocolate flavoured
• Citrus flavoured
• Hot dessert
• Cold dessert (ice cream)
DEDY WIJAYANTO 41
Menu layout trends
Entrée
• 6 or 8 offerings
Mains
One or two of each of the main foods:
• Beef, lamb, chicken, fish, seafood,
vegetarian options
DEDY WIJAYANTO 42
Cheese plate
• Cheddar, brie, blue cheese
Coffee and tea selection
• Local styles are popular
• Italian style coffee
• Wide variety of tea
DEDY WIJAYANTO 43
Menu balance
Balance in terms of:
• Prices
• Ingredients
• Cooking styles
• Complexity and simplicity
• Traditional dishes
• New experiences
• Taste
DEDY WIJAYANTO 44
Final menu considerations
Considerations
• Personal likes and preferences of the owner/manager
• Equipment available in the kitchen
• Staff skills
• Historic records
• Market research
DEDY WIJAYANTO 45
See you in part 3.
deddywijayanto@stptrisakti.ac.id
DEDY WIJAYANTO 46

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Part 1 new products and services

  • 1. DEVELOP NEW PRODUCTS AND SERVICES DEDY WIJAYANTO DEDY WIJAYANTO 1 Part 1
  • 2. 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? DEDY WIJAYANTO 2
  • 3. Characteristics of services Pure services are activities or benefits characterised by: • Intangibility • Inseparability • Perishability • Variability DEDY WIJAYANTO 3
  • 4. 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? DEDY WIJAYANTO 4
  • 5. 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 DEDY WIJAYANTO 5
  • 6. 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 DEDY WIJAYANTO 6
  • 7. Generate ideas Generating ideas • How would you generate ideas? • Why is it important to involve staff in the process? DEDY WIJAYANTO 7
  • 8. 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 DEDY WIJAYANTO 8
  • 10. Creative thinking techniques • Brainstorming • Visualising • Making associations • Lateral thinking • Six thinking hats DEDY WIJAYANTO 10
  • 11. 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 DEDY WIJAYANTO 11
  • 12. 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. DEDY WIJAYANTO 12
  • 13. Review ideas for relevance and practicality This allows you to: • Make legitimate and rational decisions about the options which were generated. • Evaluating the alternatives to determine:  Which ones remain as viable alternatives  Which ones should be discarded as inappropriate DEDY WIJAYANTO 13
  • 14. Practicality considerations • Impact on other existing house protocols, policies and procedures • Impact on layout • Staff ability • Expected revenue • Cost • Impact on service delivery DEDY WIJAYANTO 14
  • 15. • Once new products and services have been identified it is important to identify the demand for specific items and any seasonal variations that may affect it • How can you do this? DEDY WIJAYANTO 15
  • 17. Monitor and identify demand for products and services Product and service lifecycles When deciding on the introduction of products and services it is important to understand how long they will have a positive and profitable impact. Most products and services will have some lifecycle. This lifecycle is divided into four stages: • Market introduction • Market growth • Market maturity • Sales decline DEDY WIJAYANTO 17
  • 18. Identifying demand for individual products and services • Observation • Conduct a trial run • Place an advertisement • Suppliers • Industry associations • Journals and articles • Other hotels in the chain • Competitors • Feasibility study DEDY WIJAYANTO 18
  • 19. Understand seasonal demand Ways to identify seasonal demand include: • Analyse historical data • Review sales figures • The level of demand for specific products and services at different times • Identify expected peak times • Identify expected low demand times DEDY WIJAYANTO 19
  • 20. Planning product and service range Once ideas for products and services have been identified as a concept, further thought must be given as to how it is to be introduced into the market: • What are product considerations? • What are service considerations? DEDY WIJAYANTO 20
  • 21. Product considerations • Product line decisions • Packaging • Warranties • Branding • Brand rejection DEDY WIJAYANTO 21
  • 22. Service considerations • Intangibility • Inseparability • Perishability • Variability DEDY WIJAYANTO 22
  • 23. Element 2: Evaluate market trends in food production and/or food and beverage service DEDY WIJAYANTO 23
  • 24. Evaluate market trends in food production and/or food and beverage service Performance Criteria for this Element are: • Identify and access information sources on market trends in food production and/or food and beverage service • Evaluate market trends for relevance to the enterprise current and potential markets • Identify and access relevant information to assist development of new products or services DEDY WIJAYANTO 24
  • 26. Understanding trends Identify and access information sources on market trends Understanding trends of the industry is vital in ensuring that what you are seeking to provide to the market is not only fresh and relevant but is in demand: • How can you gather information on industry trends? DEDY WIJAYANTO 26
  • 27. Types of information sources • Colleagues, supervisors and managers • Representatives • Developing your own industry network • Conferences and seminars • Product launches • Trade magazines DEDY WIJAYANTO 27
  • 28. DEDY WIJAYANTO 28 Types of information sources • Hotel school publications • Newsletters • Brochures • Advertisements • Government bodies
  • 29. Types of industry statistics and trends • Industry Statistics • General industry trends • Tourism patterns • Technology • Leisure time DEDY WIJAYANTO 29
  • 30. Types of industry statistics and trends • Environmental issues • Discount operators • Customer demands • Quality demands DEDY WIJAYANTO 30
  • 31. New product and service development • Every hospitality business conducts product and service development, whether it's done intentionally or unintentionally • This section will explore some of the steps associated with product and service development DEDY WIJAYANTO 31
  • 32. Risks in new product and service development • Developing a new product or service first and hoping it will sell • Financial risks • Duplication from competitors • The time taken to develop new products or services, particularly in fast moving industries DEDY WIJAYANTO 32
  • 33. Steps in product and service development New product or service development process steps • Idea generation • Screening • Idea evaluation • Development - technical and commercial • Commercialisation DEDY WIJAYANTO 33
  • 34. Element 3: Create products or services based on market analysis and within budgetary constraints DEDY WIJAYANTO 34
  • 35. Create products or services based on market analysis and within budgetary constraints Performance criteria for this element are: • Incorporate relevant market trends into food service and menu planning • Develop products and services to take account of market trends • Develop products and services to take account of enterprise operational constraints or limitations • Construct products and services to meet profitability targets DEDY WIJAYANTO 35
  • 36. Performance criteria for this element are: • Incorporate relevant market trends into food service and menu planning • Develop products and services to take account of market trends • Develop products and services to take account of enterprise operational constraints or limitations • Construct products and services to DEDY WIJAYANTO 36
  • 37. Incorporate trends into menu planning Types of menus • Table d’hôte • À la carte • Banquet • Conferences DEDY WIJAYANTO 37
  • 38. Types of services • Breakfast:  Continental  English breakfast  American  Eastern  Morning tea  Brunch DEDY WIJAYANTO 38
  • 39. Types of services • Lunch • Afternoon tea • High tea • Dinner • Supper DEDY WIJAYANTO 39
  • 40. Menu constraints Menu length • Cost to maintain each dish on the menu • Ready availability of ingredients • Time available to prepare ingredients DEDY WIJAYANTO 40
  • 41. Side orders • Potato dish (hot) • Green vegetable (hot) • Salad (cold) Desserts • Chocolate flavoured • Citrus flavoured • Hot dessert • Cold dessert (ice cream) DEDY WIJAYANTO 41
  • 42. Menu layout trends Entrée • 6 or 8 offerings Mains One or two of each of the main foods: • Beef, lamb, chicken, fish, seafood, vegetarian options DEDY WIJAYANTO 42
  • 43. Cheese plate • Cheddar, brie, blue cheese Coffee and tea selection • Local styles are popular • Italian style coffee • Wide variety of tea DEDY WIJAYANTO 43
  • 44. Menu balance Balance in terms of: • Prices • Ingredients • Cooking styles • Complexity and simplicity • Traditional dishes • New experiences • Taste DEDY WIJAYANTO 44
  • 45. Final menu considerations Considerations • Personal likes and preferences of the owner/manager • Equipment available in the kitchen • Staff skills • Historic records • Market research DEDY WIJAYANTO 45
  • 46. See you in part 3. deddywijayanto@stptrisakti.ac.id DEDY WIJAYANTO 46