This document discusses developing new products and services for the hospitality industry. It identifies several key steps: 1. Identify new product and service opportunities by observing customer needs, analyzing documentation, and getting staff input. Generate ideas using techniques like brainstorming and researching competitors. 2. Evaluate market trends to ensure new offerings meet demand. Gather information from industry publications, competitors, and customer research. 3. Create products and services based on market analysis and within budget constraints. Incorporate trends into menu planning and develop offerings that consider operational limitations while meeting profitability goals. The document provides examples of hospitality services and considerations for menu design to successfully develop new products and services.

1. DEVELOP NEW PRODUCTS AND
SERVICES
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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?
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3. Characteristics of services
Pure services are activities or benefits characterised by:
• Intangibility
• Inseparability
• Perishability
• Variability
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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?
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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
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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
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7. Generate ideas
Generating ideas
• How would you generate ideas?
• Why is it important to involve staff in the process?
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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
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9. DEDY WIJAYANTO 9

10. Creative thinking techniques
• Brainstorming
• Visualising
• Making associations
• Lateral thinking
• Six thinking hats
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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.
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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
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14. Practicality considerations
• Impact on other existing house protocols, policies and
procedures
• Impact on layout
• Staff ability
• Expected revenue
• Cost
• Impact on service delivery
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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?
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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
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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
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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
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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?
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21. Product considerations
• Product line decisions
• Packaging
• Warranties
• Branding
• Brand rejection
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22. Service considerations
• Intangibility
• Inseparability
• Perishability
• Variability
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23. Element 2:
Evaluate market trends in food production
and/or food and beverage service
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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
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25. Wine Yard
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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?
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27. Types of information sources
• Colleagues, supervisors and managers
• Representatives
• Developing your own industry network
• Conferences and seminars
• Product launches
• Trade magazines
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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
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30. Types of industry statistics and trends
• Environmental issues
• Discount operators
• Customer demands
• Quality demands
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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
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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
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33. Steps in product and service
development
New product or service development process
steps
• Idea generation
• Screening
• Idea evaluation
• Development - technical and commercial
• Commercialisation
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34. Element 3:
Create products or services
based on market analysis and
within budgetary constraints
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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
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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
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37. Incorporate trends into menu
planning
Types of menus
• Table d’hôte
• À la carte
• Banquet
• Conferences
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38. Types of services
• Breakfast:
 Continental
 English breakfast
 American
 Eastern
 Morning tea
 Brunch
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39. Types of services
• Lunch
• Afternoon tea
• High tea
• Dinner
• Supper
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40. Menu constraints
Menu length
• Cost to maintain each dish on the menu
• Ready availability of ingredients
• Time available to prepare ingredients
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41. Side orders
• Potato dish (hot)
• Green vegetable (hot)
• Salad (cold)
Desserts
• Chocolate flavoured
• Citrus flavoured
• Hot dessert
• Cold dessert (ice cream)
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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
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43. Cheese plate
• Cheddar, brie, blue cheese
Coffee and tea selection
• Local styles are popular
• Italian style coffee
• Wide variety of tea
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44. Menu balance
Balance in terms of:
• Prices
• Ingredients
• Cooking styles
• Complexity and simplicity
• Traditional dishes
• New experiences
• Taste
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45. Final menu considerations
Considerations
• Personal likes and preferences of the owner/manager
• Equipment available in the kitchen
• Staff skills
• Historic records
• Market research
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46. See you in part 3.
deddywijayanto@stptrisakti.ac.id
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