The Hospitality Product

1
Chapter 8

• The Hospitality Product

2
Elements of Service Offering
Reservations
Housekeeping
Parking
Core Benefit Lodging
Hotel restaurant
Frequency club
Front office
Kitchen
Facilitating Services
Supporting Services
3
Physical Environment

• First impression the exterior
• Lasting impression the interior
• Atmospherics

4
Atmospherics

• Attention creation
• Sending a message
• Influencing guest feelings
• Sight
• Sound
• Smell
• Touch

5
Restaurant Concepts

• Menu
• Food production strategy
• Service
• Pricing
• Décor/ambience/environment

6
Branding Reasons and Advantages

• Identification of operation
• Enhancement of image
• Protection from competition
• Economies of scale
• Facilitating market segmentation
• Easing introduction of new products
• Building brand equity and brand loyalty

7
Types of Branding

• Umbrella brands and subbranding
• Ingredient branding
• Cobranding
• Multiple brandings
• Family brands and line extensions
• Individual brands
• Brand bundling

8
Brands in Institutional Foodservice

• Proprietary brands
• Schools and health care facilities

9
Product Life Cycle
Introduction
Growth
Maturity
Decline
10
Product Life Cycle of a Brand
Evolutionary period
First generation
Second generation
Number of units
Concept development
Expansion
Maturity
Concept development/ replacement
Expansion
Maturity
Time
11
Responses to Maturity

• Product and market development
• Competitive points of difference
• Changing the marketing mix

12
New Product Functions
Build customer base
Build Sales
Hold existing customers Build dollars
Revitalize concept
Hold Sales
Defend
13
Defining New Products

• Imitation
• Adaptation
• Innovation
• Concept innovation
• Proliferation of service format

14
The New Product Process
1. Market observation
100 problems 2. Idea generation
60 ideas 3. Screening
15-20 potential
projects 4. Preliminary evaluation
7-15 projects 5. Prototype development
5-7 prototypes 6. Market testing
3-5 products


to test market 7. Product launch
1-2 successful

projects
15
New Product Hazard

• Cannibalization