Marketing Hospitality, 3rd ed., Hsu/Powers

Chapter 8

The Hospitality Product

Core Benefit: Lodging

Housekeeping Parking

Kitchen

Facilitating Services

Front office

Hotel restaurant

Frequency club

Reservations

Supporting Services

Elements of Service Offering

Physical Environment

First impression: the exterior Lasting impression: the interior

– Atmospherics

Atmospherics

Attention creation Sending a message Influencing guest feelings

– Sight– Sound– Smell– Touch

Restaurant Concepts

Menu Food production strategy Service Pricing Décor/ambience/environment

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

Types of Branding

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

Brands in Institutional Foodservice Proprietary brands Schools and health care facilities

Introduction Growth Maturity Decline

Product Life Cycle

First generationEvolutionary

period Second generation

Num

ber

of u

nits

Concept development

Expansion Maturity Concept development/ replacement

Expansion Maturity

Product Life Cycle of a Brand

Time

Responses to Maturity

Product and market development– Competitive points of difference

Changing the marketing mix

Build Sales

Hold Sales

Build customer base

Hold existing customersBuild dollars

Revitalize concept

Defend

New Product Functions

Defining New Products

Imitation Adaptation Innovation

– Concept innovation– Proliferation of service format

1. Market observation 100 problems2. Idea generation 60 ideas3. Screening 15-20 potential projects4. Preliminary evaluation 7-15 projects5. Prototype development 5-7 prototypes6. Market testing 3-5 products to test market7. Product launch 1-2 successful projects

The New Product Process

New Product Hazard

Cannibalization