This document discusses developing new products and services for an organization. It emphasizes considering organizational constraints, notifying stakeholders of new offerings, communicating product/service details, developing policies and procedures, monitoring sales performance, evaluating offerings with stakeholders, analyzing performance against objectives, and adjusting offerings based on feedback and profitability. Key steps include determining costs, setting prices, gathering input from customers and staff, comparing results to goals, and making changes to improve implementation success.

1. DEDY WIJAYANTO
DEVELOP NEW PRODUCTS
AND SERVICES
D1.HCS.CL6.07

2. Consider organisational constraints and
limitations
Common resources
• Location/premises
• Occupational health and safety (OHS) resources
• Plant/machinery
• Raw materials – used to produce the
products or service
• Refurbishment requirements
• Staff amenities

3. Common resources
• Stock and supplies
• Storage space
• Technical equipment and software
• Staffing
• Training
• Training materials

5. Notification of new products and services
It is essential that an organisation which chooses to introduce a new
product or service to the market lets all relevant stakeholders know
about it:
• Customers
• Managers
• Finance
• Human resources
• Sales and marketing
• Staff

6. Communicate information about new products and services
This product and service knowledge can therefore include:
• Details about physical products
• Information about the services that are available
• Information on prices, specials, deals and
packages
• Details about the operation of the business

7. Develop organisational policy, procedures and standards
• Organisational service culture and values
• Strategic goals of the organisation
• Service policies, guidelines and processes
• Ethical standards established by the organisation
• Legislation, codes and practice
• Technical standards

8. Effective communication of expectations
• Formal meetings
• Staff briefings at the start and end of shifts
• Training sessions
• Observation and mentoring
• Informal communication during a shift

9. Consider profitability targets
• Naturally the introduction of new products and services normally is
an expensive exercise from a financial point of view
• When deciding on new products and services they must be done in
a way that is financially feasible in the long term
• No business aims to introduce any new concept unless there is
some financial benefit to it

10. Consider profitability targets
Initial costs
• Closure of revenue generation outlets or rooms
• Refurbishment costs
• Purchase of furniture, fixtures and equipment
• Removal of old equipment
• Project management planning and
implementing costs

11. Consider profitability targets
Initial costs
• Purchase of new supplies including food, beverages, furnishings or
amenities
• Employment of staff
• Training of staff
• Promotional materials and activities to
make customers aware of new offerings
• Loss of productivity until people
come ‘up to speed’

12. Budgets
• What is a budget?
• Why is it important to have one when planning new products and
services?
• What is contained in a budget?
• Who prepares a budget?

13. Deciding prices
Deciding on prices for new products or services
Determining a fair and accurate price for any new product or service
can be hard as no existing benchmarks may have been set:
• How do you set prices?
• What needs to be considered?

14. Pricing questions
• How do my customers perceive my product or service, in terms of
price and value?
• How do my prices compare with my competitors?
• What values and benefits do my customers
get from my product or service?
• Are my prices consistent with those benefits and values?

15. Pricing questions
• What is the current supply and demand
relationship of my product or service?
• Am I in an industry where the demand for my
product or service has a short life cycle, and thus I
need to cash in quickly?
• Do I have a product with a recognizable name
that allows me the luxury of overpricing?

16. Pricing considerations
• Price indicates ‘value’
• Understand customer perception of ‘value’
• Consider fixed and variable costs
• Consider the competition
• Consider different price points

17. Element 4:
Monitor sales performance of products
and services

18. Monitor sales performance of
products and services
Performance criteria for this element are:
• Evaluate new products and/or services in
consultation with stakeholders
• Analyse products and services in terms of
business objectives
• Adjust products and services based on
feedback and profitability

19. Evaluate new products and
services
Need for evaluation
After new products and services have been
implemented, a formal evaluation needs to analyse
and assess the above information to determine
operational effectiveness:
• Why is this important?
• How do you do it?

20. Evaluation questions
• Did it work?
• What aspects worked and what didn’t?
• Did it represent value for money?
• Were sufficient contacts or sales made?
• Did it come in on budget?

21. Evaluate new products and services
Evaluation questions
• Did the campaign/idea achieve the stated objectives?
• To what extent?
• What feedback was received from customers and agencies?
• What implications does this have for future undertakings?
• What wouldn’t we do the same next time,
and why?

22. Areas to evaluate
• The procedures or systems
• The workflow – that is the order in which things are done
• Whether or not there are gaps or overlaps in service provision
• The workload of staff
• The time it takes to do a task or job
• Job design

23. Areas to evaluate
• Level of customer satisfaction with the service or product provided
• Cost
• Level of interest created
• Demand patterns
• Ease of implementation
• Increase in sales or leads
• Return on investment

24. Getting feedback from stakeholders
• Owners of the business
• Site/property managers
• Supervisors
• Staff, teams and workgroups
• Customers
• Government agencies

25. Methods to gather feedback
Getting feedback from internal management and
staff
• Encouraging staff to feedback all relevant
comments from customers
• Not shooting the messenger
• Setting agenda items for staff meetings
• Developing appropriate documentation

26. Getting feedback from internal management and
staff
• Conduct regular meetings
• Conduct specific feedback sessions
• Get staff to provide scheduled feedback when
problems occur
• Gather thoughts during debriefing sessions
at the conclusion of shifts

27. Getting feedback from customers
• From guest comment cards
• Use an online option
• Observing customers
• Direct communication from customer/guest to staff
• Management meeting customers on departure
• Requiring frontline customer/guest contact
staff to inquire about the customer experience
• Staff should also be required to feedback any
comments they have overheard

28. Analyse products and services
against business objectives
Importance of business objectives
The basic requirement when analysing the success of
new products and services is its ability to reach its
desired objectives of performance standards:
• What types of business objectives exist in relation
to new products and services?
• How can you measure success against these
objectives?

29. Types of business objectives
The basic requirement when analysing the success of new
products and services is its ability to reach its desired objectives of
performance standards.
Business objectives may be related to:
• Quantity
• Quality
• Time
• Sales figures
• Profitability
• Customer satisfaction
• Service standards

30. Monitoring and evaluating implementation
success of new products and services
• Work out what needs to be monitored
• Decide on methods or measures to use (see next
slide)
• Compare what is happening with what
should be happening
• Take appropriate action

31. Methods of analysis
• Reports
• Obtaining customer feedback
• Using a pretend customer
• Observation
• Use of checklists
• Brainstorming sessions
• Staff input and review

32. Adjust products and services
Possible changes to products and services
As a result of input from all stakeholders and a
comprehensive analysis of the performance of new
products or services the following actions may need to
be taken to improve the successful implementation of
products or services:
• Remove the product or service if it is not
successful
• Reduce or expand the product or service
range
• Amend product or service inclusions

33. Possible changes to products and services
• Change or enhance the promotional message
• Establishing additional or revised pre-programmed
decisions to address shortcomings or problems
• Providing training to staff to improve service provision
• Revising the allocation of duties to staff
• Buying new equipment, or more equipment
or different equipment
• Making changes to establishment policies and standard
operating procedures (SOPs)

34. Possible changes to products and services
• Increasing staff numbers
• Changing operating/trading times
• Changing layout of the premises/department
• Organise more information for customers
• Change prices to meet customer demands
whilst still meeting financial expectations

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