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Marketing Hospitality, 3rd ed., Hsu/Powers Chapter 8 The Hospitality Product
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Core Benefit: Lodging HousekeepingParking Kitchen Facilitating Services Front office Hotel restaurant Frequency club Reservations Supporting Services Elements of Service Offering
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Physical Environment n First impression: the exterior n Lasting impression: the interior –Atmospherics
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Atmospherics n Attention creation n Sending a message n Influencing guest feelings –Sight –Sound –Smell –Touch
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Restaurant Concepts n Menu n Food production strategy n Service n Pricing n Décor/ambience/environment
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Branding Reasons and Advantages n Identification of operation n Enhancement of image n Protection from competition n Economies of scale n Facilitating market segmentation n Easing introduction of new products n Building brand equity and brand loyalty
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Types of Branding n Umbrella brands and subbranding n Ingredient branding n Cobranding n Multiple brandings n Family brands and line extensions n Individual brands n Brand bundling
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Brands in Institutional Foodservice n Proprietary brands n Schools and health care facilities
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IntroductionGrowthMaturityDecline Product Life Cycle
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First generation Evolutionary period Second generation Number of units Concept development ExpansionMaturityConcept development/ replacement ExpansionMaturity Product Life Cycle of a Brand Time
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Responses to Maturity n Product and market development –Competitive points of difference n Changing the marketing mix
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Build Sales Hold Sales Build customer base Hold existing customers Build dollars Revitalize concept Defend New Product Functions
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Defining New Products n Imitation n Adaptation n Innovation –Concept innovation –Proliferation of service format
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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 The New Product Process
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New Product Hazard n Cannibalization
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