Develop new products and services
D1.HCS.CL6.07
Trainee Manual
Develop new products
and services
D1.HCS.CL6.07
Trainee Manual
Project Base
William Angliss Institute of TAFE
555 La Trobe Street
Melbourne 3000 Victoria
Telephone:
(03) 9606 2111
Facsimile:
(03) 9670 1330
Acknowledgements
Project Director:
Chief Writer:
Subject Writer:
Project Manager/Editor:
DTP/Production:
Wayne Crosbie
Alan Hickman
Nick Hyland
Alan Maguire
Daniel Chee, Mai Vu, Riny Yasin
The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967. The Member
States of the Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, Philippines, Singapore, Thailand and Viet Nam.
The ASEAN Secretariat is based in Jakarta, Indonesia.
General Information on ASEAN appears online at the ASEAN Website: www.asean.org.
All text is produced by William Angliss Institute of TAFE for the ASEAN Project on “Toolbox
Development for Front Office, Food and Beverage Services and Food Production Divisions”.
This publication is supported by Australian Aid through the ASEAN-Australia Development
Cooperation Program Phase II (AADCP II).
Copyright: Association of Southeast Asian Nations (ASEAN) 2013.
All rights reserved.
Disclaimer
Every effort has been made to ensure that this publication is free from errors or omissions. However,
you should conduct your own enquiries and seek professional advice before relying on any fact,
statement or matter contained in this book. ASEAN Secretariat and William Angliss Institute of TAFE
are not responsible for any injury, loss or damage as a result of material included or omitted from this
course. Information in this module is current at the time of publication. Time of publication is indicated
in the date stamp at the bottom of each page.
Some images appearing in this resource have been purchased from various stock photography
suppliers and other third party copyright owners and as such are non-transferable and non-exclusive.
Additional images have been sourced from Flickr and are used under:
http://creativecommons.org/licenses/by/2.0/deed.en
http://www.sxc.hu/
File name: TM_Develop_new_products_&_ser_250713.docx
Table of contents
Introduction to trainee manual........................................................................................... 1
Unit descriptor................................................................................................................... 3
Assessment matrix ........................................................................................................... 5
Glossary ........................................................................................................................... 7
Element 1: Analyse market ............................................................................................... 9
Element 2: Evaluate market trends in food production and/or
food and beverage service ............................................................................ 47
Element 3: Create products or services based on market analysis and
within budgetary constraints .......................................................................... 63
Element 4: Monitor sales performance of products and services .................................... 89
Presentation of written work ............................................................................................ 99
Recommended reading................................................................................................. 101
Trainee evaluation sheet ............................................................................................... 103
© ASEAN 2013
Trainee Manual
Develop new products and services
© ASEAN 2013
Trainee Manual
Develop new products and services
Introduction to trainee manual
Introduction to trainee manual
To the Trainee
Congratulations on joining this course. This Trainee Manual is one part of a ‘toolbox’
which is a resource provided to trainees, trainers and assessors to help you become
competent in various areas of your work.
The ‘toolbox’ consists of three elements:

A Trainee Manual for you to read and study at home or in class

A Trainer Guide with Power Point slides to help your Trainer explain the content of the
training material and provide class activities to help with practice

An Assessment Manual which provides your Assessor with oral and written questions
and other assessment tasks to establish whether or not you have achieved
competency.
The first thing you may notice is that this training program and the information you find in
the Trainee Manual seems different to the textbooks you have used previously. This is
because the method of instruction and examination is different. The method used is called
Competency based training (CBT) and Competency based assessment (CBA). CBT and
CBA is the training and assessment system chosen by ASEAN (Association of SouthEast Asian Nations) to train people to work in the tourism and hospitality industry
throughout all the ASEAN member states.
What is the CBT and CBA system and why has it been adopted by ASEAN?
CBT is a way of training that concentrates on what a worker can do or is required to do at
work. The aim is of the training is to enable trainees to perform tasks and duties at a
standard expected by employers. CBT seeks to develop the skills, knowledge and
attitudes (or recognise the ones the trainee already possesses) to achieve the required
competency standard. ASEAN has adopted the CBT/CBA training system as it is able to
produce the type of worker that industry is looking for and this therefore increases
trainees chances of obtaining employment.
CBA involves collecting evidence and making a judgement of the extent to which a worker
can perform his/her duties at the required competency standard. Where a trainee can
already demonstrate a degree of competency, either due to prior training or work
experience, a process of ‘Recognition of Prior Learning’ (RPL) is available to trainees to
recognise this. Please speak to your trainer about RPL if you think this applies to you.
What is a competency standard?
Competency standards are descriptions of the skills and knowledge required to perform a
task or activity at the level of a required standard.
242 competency standards for the tourism and hospitality industries throughout the
ASEAN region have been developed to cover all the knowledge, skills and attitudes
required to work in the following occupational areas:

Housekeeping

Food Production

Food and Beverage Service
© ASEAN 2013
Trainee Manual
Develop new products and services
1
Introduction to trainee manual

Front Office

Travel Agencies

Tour Operations.
All of these competency standards are available for you to look at. In fact you will find a
summary of each one at the beginning of each Trainee Manual under the heading ‘Unit
Descriptor’. The unit descriptor describes the content of the unit you will be studying in the
Trainee Manual and provides a table of contents which are divided up into ‘Elements’ and
‘Performance Criteria”. An element is a description of one aspect of what has to be
achieved in the workplace. The ‘Performance Criteria’ below each element details the
level of performance that needs to be demonstrated to be declared competent.
There are other components of the competency standard:

Unit Title: statement about what is to be done in the workplace

Unit Number: unique number identifying the particular competency

Nominal hours: number of classroom or practical hours usually needed to complete
the competency. We call them ‘nominal’ hours because they can vary e.g. sometimes
it will take an individual less time to complete a unit of competency because he/she
has prior knowledge or work experience in that area.
The final heading you will see before you start reading the Trainee Manual is the
‘Assessment Matrix’. Competency based assessment requires trainees to be assessed in
at least 2 – 3 different ways, one of which must be practical. This section outlines three
ways assessment can be carried out and includes work projects, written questions and
oral questions. The matrix is designed to show you which performance criteria will be
assessed and how they will be assessed. Your trainer and/or assessor may also use
other assessment methods including ‘Observation Checklist’ and ‘Third Party Statement’.
An observation checklist is a way of recording how you perform at work and a third party
statement is a statement by a supervisor or employer about the degree of competence
they believe you have achieved. This can be based on observing your workplace
performance, inspecting your work or gaining feedback from fellow workers.
Your trainer and/or assessor may use other methods to assess you such as:

Journals

Oral presentations

Role plays

Log books

Group projects

Practical demonstrations.
Remember your trainer is there to help you succeed and become competent. Please feel
free to ask him or her for more explanation of what you have just read and of what is
expected from you and best wishes for your future studies and future career in tourism
and hospitality.
2
© ASEAN 2013
Trainee Manual
Develop new products and services
Unit descriptor
Unit descriptor
Develop new products and services
This unit deals with the skills and knowledge required to Develop new products and
services in a range of settings within the hotel and travel industries workplace context.
Unit Code:
D1.HCS.CL6.07
Nominal Hours:
50
Element 1: Analyse market
Performance Criteria
1.1 Target markets are identified in accordance with enterprise marketing and
merchandising policies
1.2 Analyse market competition
1.3 Client requirements are monitored informally in order to evaluate market trends and
client needs
1.4 New products and services are identified
1.5 Opportunities to improve sales and services are identified
1.6 Product and service range is monitored to identify the demand for individual items
and seasonal variations
1.7 Product and service range is planned
Element 2: Evaluate market trends in food production and/or food
and beverage service
Performance Criteria
2.1 Identify and access information sources on market trends in food production and/or
food and beverage service
2.2 Evaluate market trends for relevance to the enterprise current and potential markets
2.3 Identify and access relevant information to assist development of new products or
services
© ASEAN 2013
Trainee Manual
Develop new products and services
3
Unit descriptor
Element 3: Create products or services based on market analysis
and within budgetary constraints
Performance Criteria
3.1 Incorporate relevant market trends into food service and menu planning
3.2 Develop products and services to take account of market trends
3.3 Develop products and services to take account of enterprise operational constraints
or limitations
3.4 Construct products and services to meet profitability targets
Element 4: Monitor sales performance of products and services
Performance Criteria
4.1 Evaluate new products and/or services in consultation with stakeholders
4.2 Analyse products and services in terms of business objectives
4.3 Adjust products and services based on feedback and profitability
4
© ASEAN 2013
Trainee Manual
Develop new products and services
Assessment matrix
Assessment matrix
Showing mapping of Performance Criteria against Work Projects, Written
Questions and Oral Questions
Work
Projects
Written
Questions
Oral
Questions
Element 1: Analyse market
1.1
Target markets are identified in accordance
with enterprise marketing and merchandising
policies
1.1
1,2
1
1.2
Analyse market competition
1.2
3,4
2
1.3
Client requirements are monitored informally in
order to evaluate market trends and client
needs
1.3
5,6
3
1.4
New products and services are identified
1.4
7,8
4
1.5
Opportunities to improve sales and services
are identified
1.5
9,10
5
1.6
Product and service range is monitored to
identify the demand for individual items and
seasonal variations
1.6
11,12
6
1.7
Product and service range is planned
1.7
13,14
7
Element 2: Evaluate market trends in food production and/or food and beverage service
2.1
Identify and access information sources on
market trends in food production and/or food
and beverage service
2.1
15,16
8
2.2
Evaluate market trends for relevance to the
enterprise current and potential markets
2.2
17,18
9
2.3
Identify and access relevant information to
assist development of new products or
services
2.3
19,20
10
Element 3: Create products or services based on market analysis and within budgetary
constraints
3.1
Incorporate relevant market trends into food
service and menu planning
3.1
21,22
11
3.2
Develop products and services to take account
of market trends
3.2
23,24
12
© ASEAN 2013
Trainee Manual
Develop new products and services
5
Assessment matrix
Work
Projects
Written
Questions
Oral
Questions
3.3
Develop products and services to take account
of enterprise operational constraints or
limitations
3.3
25,26
13
3.4
Construct products and services to meet
profitability targets
3.4
27
14
Element 4: Monitor sales performance of products and services
4.1
Evaluate new products and/or services in
consultation with stakeholders
4.1
28
15
4.2
Analyse products and services in terms of
business objectives
4.2
29
16
4.3
Adjust products and services based on
feedback and profitability
4.3
30
17
6
© ASEAN 2013
Trainee Manual
Develop new products and services
Glossary
Glossary
Term
Explanation
Data
Pieces of information, facts
Demand
The desire customers have for a product or service
Environment
The internal and external influences on a business
External environment
External environment refers to the area outside the
business over which the venue has little or no control
Feasibility
Capable of being done, effected, or accomplished
Internal environment
Environment within the business
Lifecycles
The expected useful life or period of demand for a
product or service
Market
The potential range of customers
Needs
Something customers are unable to do without
Product
The totality of goods or services that a company makes
available
Service
The provision of accommodation and activities required
by the public
Stakeholders
A person or group that has an investment, share, or
interest in something,
Statistics
The science that deals with the collection, classification,
analysis, and interpretation of numerical facts or data
SWOT Analysis
An analysis of elements both internal and external to the
company and their likely impact on the organisation
Table d’hôte
Set menu
Target market segment
The desired category of potential customers to a
business
Trends
The general course or prevailing tendency
Wishes
The way in which our customer would prefer to satisfy a
specific need, but they may not have the resources to
meet these wishes
© ASEAN 2013
Trainee Manual
Develop new products and services
7
Glossary
8
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Element 1:
Analyse market
1.1 Target markets are identified in accordance
with enterprise marketing and merchandising
policies
Introduction
This manual focuses on the development of new products and services in which to offer
an organisation’s intended market.
It is normal practice for businesses, regardless of industry, to develop and introduce new
products and services.
This may include improvements to existing offerings or complete changes of direction.
Many new products and services introduced to a market are a direct result of changes to
what the customer needs and wants and what the competition is offering to meet these
needs, in relation to what you are offering.
When developing products and services, there are many factors that need to be
considered, both inside and outside the organisation.
Whilst it is essential to introduce new products and services
that will be profitable to the organisation, it will not be
successful unless:

It is unique when compared with competitor’s offerings

It provides value for money

The customer views the product or service as valuable in
their eyes.
This section will explore the need for change and how to identify target markets ripe for
change.
A changing environment
‘A rolling stone gathers no moss.’
This saying is known by most people. This one phrase
sums up the purpose and importance of change in a
business.
As the world evolves, society evolves and any business,
regardless of the industry it belongs to, must in turn adapt
to ensure that it provides an ‘offering’ that will attract
customers to the premises.
Business practice in the last 20 years has changed dramatically with organisations now
required to operate in a more complex and fast changing environment.
© ASEAN 2013
Trainee Manual
Develop new products and services
9
Element 1: Analyse market
In a global economy where technology ensures information is instant, with new
competitors, new products and changing customer needs and wants, organisations need
specific strategies for future growth.
This inevitably leads to making changes to the existing model of operation in some
format. As mentioned, these changes may be minor or major.
It doesn’t mean changing a successful formula, but ensuring what is offered is not only
relevant to today’s market and consumers, but will be attractive in the future.
Management needs to focus on more than just the internal strengths and weaknesses of
an organisation. They need to factor in external influences that not only direct where
future growth will proceed but the rate, and breadth at which it will proceed.
An organisation not only needs to anticipate the extent of external influences such as
political, social and cultural constraints, but needs to ensure plans are flexible enough to
cater for these variables.
The next section will explore the need to analyse the entire market, including internal and
external environments of an organisation, and the influences they have on the need for
change.
Change management
Change is inevitable.
Change is not an activity that takes place once a
business is in decline. Instead there should be a
constant focus on ensuring that not only are you
providing something that the customer wants, but
that it is better than what the competition is offering.
This constant need to monitor and change accordingly is reflected in the term ‘continuous
improvement’, which is routinely mentioned throughout this manual.
Organisations are in constant competition with ever changing businesses, with existing
and potential customers increasingly being given a greater range of choices.
In essence change management will not just rely on previous successes as a means for
planning for future growth, nor will they rely on previous failures as a means for avoiding
future failures.
Whilst change is often a necessary and positive activity, it can promote uncertainty,
uneasiness and concern for staff.
It is therefore essential that management play an active role in encouraging and
promoting inclusion in the change process.
Improving customer service
The hospitality industry is always associated with customer service. Many people see
hospitality organisations, whether hotels or resorts, as a place to relax and take a break
from their normal everyday stresses.
As we know, there are a wide variety of customers who frequent a hospitality
organisation, for many reasons. They may be customers utilising:

Accommodation – leisure, business or residence
10
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

Food and Beverage –restaurants, bars, functions, room service, banquets

Leisure facilities – pools, spa, sauna and gymnasium.
Regardless of their visit it is important that they receive quality
service. Quality service is being able to use a combination of
products and services as a combined offering that, at a minimum,
meets the expectations of the consumer.
Quality customer service is not just associated with 5 star hotels, it
is a fundamental aspect of all hospitality businesses, whether
budget or luxury. Quite simply customer service is important to any
business in any industry. It is about ensuring customers leave your
premises pleased with the experience they received.
The customer
The whole purpose of change and the subsequent need to produce new products and
services is based around the needs of customers.
So what is the definition of a customer?
A customer can be seen as:

A person on the receiving end of what the business offers

Someone who is willing to pay a fair price for a quality
product and wants to be neither over-charged nor underserved

The reason the company is in business

Someone who has certain needs and wants them filled and who, if we cannot fill them,
will go to a competitor who will.
The quality of service is realised by the customer and is interpreted and perceived by him
or her. This means that quality of service is not defined by those who deliver it.
The point from the above is there is really not one ‘thing’ called a customer. Customers
are all individuals and come with individual needs and expectations.
These needs will be explored in more detail later in this manual.
We must actually act in a manner that acknowledges that without them the business
ceases to function, and we have no jobs.
The old saying ‘it’s the customers who pay your wages, not the boss’ is true. It has been
so often used it risks becoming ignored. However, if you have ever worked in an
establishment where trade has been going down, staff hours have been reduced and
others are being laid off, you’ll know what it truly means.
Unfortunately, all too many premises and staff members only realise how true this saying
is when it’s too late when customers are voting with their feet and spending their money
somewhere else.
It is a very sobering exercise to see how many other hotels, clubs, restaurants and bistros
there are for the customer to choose from.
Most other places offer a similar product so it is often the service, the standard, level and
how that service is delivered, that differentiates one place from another.
© ASEAN 2013
Trainee Manual
Develop new products and services
11
Element 1: Analyse market
The Customer is …
You may have seen what follows on posters and postcards around the place. Sometimes
it’s hung up in staff rooms and sometimes it graces the walls of the manager’s office.
It is a pretty good description of who the customer is and sends us a fairly clear message
about how we should treat them.
The customer is not dependent on us, we are dependent on them:

The customer is not an interruption to our work; they are the sole
reason for it

The customer does us a favour by walking in or phoning up; we
don’t do them a favour by serving them

The customer is part of our business, not outside it

The customer is not a statistic. The customer is a flesh and blood
human being with feelings and emotions

The customer is not someone to argue with or match wits with

The customer brings us their wants and needs and it is our job to satisfy them

The customer is deserving of the most courteous and respectful attention we can give
them

The customer is the lifeblood of our business, because without them there is no
business.
Identify market segments
Any hospitality organisation, like in any business in any industry,
cannot be everything to everyone. It must break down the potential
audience into segments, each with similar characteristics of some
manner, and then choose these segments to be the focus of their
efforts.
As each hospitality organisation caters to a range of types of
customers, known as target market segments, the challenge lies in
being able to provide an offering to meet their individual needs.
We have to recognize each type of customer and treat them as
individuals.
Benefits of market segmentation
Market segmentation has numerous benefits.
It provides you with a much more detailed and accurate description of the market
place.
By forcing you to think about exactly who your customers are, you get a more up to date
impression of what is an ever-changing market.
This helps you get the best fit or match between your product and the customer.
12
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
It enables more effective and efficient marketing.
Market segmentation helps us make the best use of the resources at our disposal (such
as less waste, a greater chance that we can sell what we produce), as we focus more on
providing what the research has determined is likely to sell, rather than wasting time,
money and effort on stuff we just hope will sell.
In this way, market segmentation provides more certainty about our actions.
It forces assessment of the competition.
Many business operators are so busy with the actual day to day operation of their
business (ordering stock, taking deliveries, doing the banking, serving customers, doing
the books, interviewing staff, preparing ads etc.) that they often don’t have the time to look
in depth at what is presently going on in the marketplace.
Looking at the marketplace helps identify who our competitors
are and what they are offering; What initiatives have they
come up with? Where are they posing a threat to our
business? What are the services, facilities, expertise, and
competitive edges that they’ve got that we need to be aware
of so that we can take some sort of mitigating action?
Are there new players emerging? Or are there established
ones closing down, expanding into new fields or moving into new premises? What are the
implications for us?
It enables us to better position ourselves in the marketplace.
Because of all this new knowledge that you have based on your market research, you can
select where in the marketplace you want to be.
Do you want to be seen as ‘expensive, but the best’, ‘cheap’, ‘value-for-money’, ‘people
with a wide range of products’, or ‘people with the knowledge and expertise to back up
their products’?
It will give you a definite direction in what you are trying to portray to the public. This a
better alternative to just opening up an establishment with no defined image that can turn
eventually into a negative image.
You may find that you discover some unfilled demand in the marketplace that you can
capitalise on. This niche could be a profitable ancillary market, or a substitute for your
existing business.
Generic market segments
There are many ways to identify different segments of potential customers. The types of
potential target markets is limitless. Each organisation will break down the potential
market to suit their needs and to help identify the potential of each group.
For the purpose of simplicity, in general, organisations may identify market segment
categories such as:
Age
Infants, children, teenagers, mature adults, senior citizens.
© ASEAN 2013
Trainee Manual
Develop new products and services
13
Element 1: Analyse market
Social background
Ranges from the upper crust of society to people of more
modest upbringing.
Economic background
High income earners through middle to low income earners.
Cultural background
Variety of religious beliefs and customs.
Special interests
Purpose for their holiday, sporting interest, athletes.
Physical and mental abilities
These people may have a physical or cognitive limitation.
Dietary needs
Any group within the community, including those with particular nutritional or dietary
needs and interests.
Hospitality market segments
Hospitality organisations may create the following categories:
Business
Business travellers can comprise:

FIT (Free Independent Travellers) who arrange their own
accommodation

Member of a corporation which has a special rate with an
organisation

Conference or event guest within a hotel.
Leisure
This market is travelling for relaxation purposes and may include:

FIT (Free Independent Travellers)

Tours /coach groups

Honeymooners

Families

Elderly.
14
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Religious
This market is travelling to participate in a pilgrimage or religious
celebration.
Sporting
This market is travelling to participate in sporting events, tours or
competitions.
Tourism market segments
Outbound tourists
An outbound tourist is where a local tourist goes to a region away
from where they reside and where the business is. This normally
means the tourist is either leaving the town, city or country.
This type of tourist would be beneficial to travel agents and
transport companies.
Inbound tourists
An inbound tourist is where a tourist from another location comes into your region. This
normally means the tourist is coming into your area.
This type of tourist would be beneficial to accommodation venues and tourist attractions.
Domestic tourists
A tourist who travels within a country. They are natives and you can
easily promote your product and/or service to them.
International tourists
A tourist who travels to or from another country. Conducting
promotional activities can be harder as they may come from various
countries, speak different languages and have different needs.
Identifying target market segments
As mentioned, a hospitality organisation cannot be everything to everyone, therefore it
must select the most appropriate segments from the entire potential market in which to
focus its efforts and to tailor their products and services around.
It is important that the needs and wants of these target market segments are identified to
understand they are going to receive ‘value’ from our offering.
These needs will be explored in more detail in Section 1.3 of this manual.
Target markets
When you have identified the market segments you wish to attract, these become your
target markets.
Note that in most cases, there will be more than one target market.
© ASEAN 2013
Trainee Manual
Develop new products and services
15
Element 1: Analyse market
Also, don’t get the impression that you should have only ‘a few’, and don’t get the idea
that target markets are small in number.
You can have lots of them and they can be big or small. The term ‘target market’
describes a group that you have identified whose needs and wants are similar, and who
you have decided you want to service.
As we have said above, development of a demographic profile needs to be done for every
target market you have identified, so the establishment needs to:

Identify and describe each target market that it has

Match customer demographic characteristics to each target market.
Where your establishment has a marketing plan, these target markets or market
segments will probably be listed there.
Many target markets relate to specific products or services you offer.
The decision about what will be a market segment is an in-house decision.
An example of target market segmentation
As an example, one business may see the customers who come into its coffee shop as
one generic target market, and profile those people.
Another establishment may elect to segment these customers into:

Hot drink buyers

Cold drink buyers

Hot food buyers

Cold food buyers

Food-related merchandise purchasers

Product (non-food) merchandise buyers.
Further segmentation can include eat-in and takeaway, as well as office and party
catering.
Benefits of establishing target market segments
The analysis and collection of information in relation to different target market segments
will guide:

Products and services offered – range, brands, options

Prices charged; to match the ability to pay

Where advertisements are placed

How advertisements are targeted – which age groups, gender, ethnic backgrounds

Considerations in relation to staff hired – language skills, blend of male and female,
blend of appropriate age groups.
16
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
1.2 Analyse market competition
Introduction
As stated in the introduction to this manual, the world is an ever changing place, and
these changes will have various effects on a business.
Development of a successful organisation is an on-going exercise, and involves
monitoring of the internal and external environments, the integration of findings into future
planning and the introduction of new products and services.
What is market analysis?
Market analysis provides us with the information necessary to understand what can cause
changes in our operational environment.
A prime objective of this activity is to gain a more insightful and detailed view of the
organisation and where it sits in the overall business and other
settings.
Market analysis is a fairly generic term that describes an activity
that we are constantly conducting in order to target the right
person with the right product or service at the right time in context
with the workings of the market, our environment and our
competition.
The purpose of this research is to help determine what
competitive advantages you have over your competitors so that
you can exploit them.
This research helps you to identify your USPs (Unique Selling Points) in either product or
service (or both).
A USP is something your store offers that no-one else does – this makes it unique. The
marketing approach says that this USP should be highlighted in all of your advertising so
that customers get to know that they can only get this particular service, produce, facility
or advice at your store and nowhere else. The intention is that this USP will act as a
motivator for customers to buy from you.
Current market situation
Information on the current market position is normally drawn from a database of
information that the organisation constantly updates. This includes information on the
market, product, competition, current strategies and macro-environment.
Market situation

Total market characteristics - size, growth, trends

Customer needs, perceptions and buying behaviour

Products - service characteristics

Prices

Customer service and distribution
© ASEAN 2013
Trainee Manual
Develop new products and services
17
Element 1: Analyse market

Channels - principal channels used, stock turnovers, profit

Communication - principal methods of communication used.
Competitive situation

Industry structure – type of competition, marketing methods, new entrants, mergers,
competitive arrangements

The geographic market in which they compete

Their current marketing performance

Their competitive position (growing, contracting)

Strengths and weaknesses, and vulnerabilities of each
significant competitor

Their objectives and competitive strategies

Industry profitability – financial and non-financial barriers to entry, relative
performance of individual companies, volume, source of and cost of investment, effect
and return on investment of changes in price.
Product situation

For each product/service that the organisation offers, sales, profits,
contribution margins and growth should be displayed.

Product lifecycle and expected demand over the product’s life
should be considered.

Growth of the product/service should be contrasted to total market
growth.
Current strategies

Current product, price, place and promotional strategies should be included.

Current people, processes and physical evidence strategies should also be included.
Situation analysis
Most businesses undertake a SWOT analysis to gain an understanding of what is
happening both external and internal to the business and the effect it will have on the
business. This process ultimately tries to identify:

Strengths – what the business does well

Weaknesses – what the business can improve upon

Opportunities – where the business can take advantage
of potential opportunities

Threats – where the business may become
disadvantaged, weakened or susceptible because of
external events or situations.
Strengths and weaknesses in the internal structure, operations and ability or capacity
may appear in terms of:

Finance (cash flow, debt, equity rates, level of assets, profitability, capital available
18
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

Production – plant and equipment, quality control, R & D, patents, production methods

Marketing – customer base, price structure, distribution, location, promotion, product
range

Personnel – staff size, key personnel, morale, leadership, communication

Other – any others that are relevant to your specific organisation.
Opportunities and threats that may externally face the organisation can include:

Competition – new competitors, import competition, aggressive competitors

State of the economy – inflation, interest rates, credit availability, unemployment

Government policy – taxation, imports and tariffs,
legislation

Technology – new technology, changing cost structures,
obsolescence, new products

Suppliers – mergers/monopolies, prices, distribution,
competition

Other – any others that are relevant.
These will be explored in more detail later in this section.
Analysis of external environment
The external environment refers to the area outside the business over which the venue
has little or no control. It normally has the greatest effect on the need for change.
It can relate to changes in technology, changes in legislation, state of the economy,
political situations, and competition in the marketplace.
Service deficiencies caused by external factors may be harder to control. However, steps
should be made to understand them and make changes where the organisation has some
control.
External environment impacts include:
Changes in the competitive environment
As competitors introduce new services and facilities, the nature of our industry is such
that we are often forced to respond and match their offerings or introduce something else
in opposition to it. The key here is we have to know what the competitors are doing. We
have to monitor their advertising, visit their premises and talk to our suppliers about what
the opposition is doing. We then have to take some action to exploit an opportunity or
mitigate any potential negative impacts. Whichever way we go, we have to realise
‘knowledge is power’ only if we act on it. Knowledge on its own is next to useless.
As part of this analysis, it may also be prudent and instructive to undertake a similar
analysis of your competitors so that you have a better understanding of the total
opposition ranged against you, and the marketplace in general.
When analysing the competition, it is useful to gather evidence of the following:

Location and distribution area that they have established

Target markets they appear to have set
© ASEAN 2013
Trainee Manual
Develop new products and services
19
Element 1: Analyse market

Product and service mix

Packaging or presentation

Access

Continuity

Their promotional mix – what they do in terms of
advertising, when and how

An objective assessment of the quality of their product/service. For example; ’Are they
providing good quality, costs, variations, reliable service, acceptable trading hours,
value-for-money?’

Their pricing structure – ‘Do they give discounts, trade-ins, a wholesale and retail
structure?’

Their level of customer service – ‘What do they provide? Are their staff good at selling
and service?’

Their market share – ‘How much of the (local) business do they have?’
Economic climate
Monitoring the media and discussion with our finance facility will help identify the state of
the economy. There is no doubt the state of the economy is extremely influential on trade
and we have to be prepared to respond to the emerging economic climate. At times we
can offer indulgent, extravagant, high-roller packages, whilst at other times we need to
focus on low cost, value-for-money deals.
Trends in customer preferences
Whether we lead the pack or follow the opposition (or a combination of the two), we must
respond to customer preferences.
Advent of E-business
More and more people are using the ‘Net’ to access
information and make bookings. We need to tap into this
emerging but already substantial market and establish a
website (making sure it is someone’s responsibility to keep it
updated weekly) which illustrates our property and describes
our services, facilities etc.
We also need to exploit the opportunities this medium presents for reservations and
various other activities such as retail sales (internet sales), take-away sales,a forum for
questions and feedback and a platform for information dissemination.
Markets
Markets are complex and rapidly changing with new and more complex customer
demands, products and services.
Internationalisation is increasing and international competition is intensifying in many
markets.
To ensure the right quality, companies must be better at understanding their environment
and building-up the competence and ability to change before, or at the same time, as the
outside world changes.
20
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
The luxury of lagging behind global changes has evaporated.
International customers expect the same standards here as they receive in any developed
country overseas.
Environmental issues
The demand for quality in the outer environment will place greater demands on how
companies conduct their business, which sources of energy they use, and how they
design their products.
More establishments will seek to portray publicly their
environmentally friendly image.
This may mean they subscribe to organisations such as ECO-Buy
or Green Globe.
Most organisations appreciate there are cost savings to made
from ‘going green’, as well as marketing potential and the obvious
effect of reducing the impact of the business on the planet.
Most businesses today will seek to demonstrate that they align
with triple bottom-line principles, taking into account not only the
financial goals of the organisation but also social and
environmental responsibilities too.
Technological development
Technological development has played a key role in the structural changes in the service
sector.
Boundaries between transportation, communication, travel-service and hospitality
industries are disappearing as airlines (and others) begin to provide direct reservations,
tours, conferences, car and accommodation arrangements, in-flight telephone service,
and electronic retailing package delivery services in competition and collaboration with
thousands of other service units.
Many customers are looking for seamless service – a one-stop shop for all their holiday
and travel needs, and technology is providing the means for this to be done.
Technology has also impacted on operational service delivery via computerised
reservations systems, online reservations, hand-held ordering systems in restaurants, bar
code scanning and the growing trend for customers to do their own checkout and
payment after selecting goods.
Analysis of internal environment
Once management have had a thorough look at the external environment, the focus must
be internally focused.
The internal environment is the environment within the business.
It can include the level of staff available, the policies and procedures of the organisation,
the skill and knowledge levels of staff, the opening hours of the business, the facilities
available within the venue. In theory, a property has control over these internal factors
because it is in a position to influence them.
Any aspects of the internal environment impacting service can be identified, changed and
improved a lot easier than impacts caused by the external environment.
© ASEAN 2013
Trainee Manual
Develop new products and services
21
Element 1: Analyse market
Possible reasons for change coming from within the internal environment could include,
but are not limited to:

Substandard products – products may be outdated, inferior or in need of replacement
or renovation

Equipment – faulty equipment or new equipment which staff are not familiar with

Marketing – the wrong message is being delivered to
customers giving them unrealistic expectations

Staffing – staffing levels may not be appropriate (under/over
staffing), wrong mix of staff (experienced and new staff)

Recruitment – people with insufficient knowledge, skills and
attitudes have been employed

Training – staff are unaware of what to do resulting in
inconsistency

Management – lack of controls, standards, guidance and support

Financial support – limited availability to funds required to provide necessary products
and services

Changes in management style – changes in management may entail a variation in
orientation to service or the setting of some directions in relation to service. What was
acceptable under the previous management may not be acceptable to the new
management. This doesn’t mean that what was done before was wrong, it just means
the new approach is different.
Note too, changes in management often herald changes in client focus, and the
creation of new and different target markets which, by their nature, often demand a
change to service standards, techniques and styles

Organisational restructures. The trend is to reduce
middle level management and with that comes new
responsibilities for all concerned. As the organisation
restructures, whether for efficiency reasons or as a
result of declining profit, new roles for all staff in relation
to customer service will emerge. Staff and managers
will have their responsibilities enlarged, or their focus
altered. To state the obvious, the industry is very much
a dynamic one.
Summary of a SWOT analysis
A SWOT analysis is only a summary of your audit and should be covered in one page.
SWOTs are usually drawn up in a easy and simple to read format as demonstrated below.
Strengths

Location close to main highway

Excellent customer service

Includes bed and breakfast

Four star restaurant
22
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

Canoeing, bush walking, yoga

Strong reputation quality

Good word of mouth

Packages include combination meals/activities, discounts during summer.
Weaknesses

Prices non-competitive during peak period

Business seasonal

Limited capital

Lack of control of restaurant.
Opportunities

Increasing leisure

Increase in stress and anxiety

Renewed concern for peace and nature

Increasing number of business

Conventions held away from city

Increasing desire to escape from suburban life

More people travelling on weekends.
Threats

Competition situated geographically closely

Pricing in peak season of competition cheaper

Limited financial lending

Competition have years of experience.
By having this information at hand, any new products and services that may be
considered for introduction can be identified more easily.
© ASEAN 2013
Trainee Manual
Develop new products and services
23
Element 1: Analyse market
1.3 Client requirements are monitored informally
in order to evaluate market trends and client
needs
Introduction
Another important part of analysing the market to determine the potential success of new
products and services is through a thorough understanding of the needs of target market
segments and trends that are affecting the hospitality industry.
By understanding the range and types of needs that customers have, it helps to identify
which products and services will be required to satisfy these needs.
Understanding customer needs
Before we can tailor our products and services to provide an offering that the guest wants,
we first need to find out what the guest actually wants.
Many businesses make the mistake of providing an offering they THINK the guest wants,
but what is offered doesn’t meet their needs.
Therefore research of what the customer wants is an essential
activity. This is the essence of marketing.
The marketing perspective on a business says everything we
do must be customer-focused.
To identify exactly what this focus needs to be we have to
obtain information on customer needs and wants by
undertaking some basic market research.
The focus on any continuous improvement should be targeted at using any research
towards strengthening and improving customer service.
Customer needs, wishes and expectations
Customer service revolves around us meeting or exceeding customer needs, wishes and
expectations. It seems appropriate, then, to identify what these mean.
Needs
These underlie wishes and expectations and are the things customers are unable to do
without. They may be in a foreign town and simply cannot do without a bed for the night, a
meal or beverage.
Generic customer needs
Whilst every customer to the organisation has their own individual needs, there are a
number of generic needs that staff must address when providing quality customer service.
These needs include:

Value for money

‘Offering’ – reflecting what was advertised

Expectations met or exceeded (see below)

To feel respected which is why we use “Sir” and “Madam”
24
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

To feel welcomed. This is why we give all our customers a warm, genuine and sincere
smile and welcome. We really are pleased to see them

To be served by friendly staff which is again why we smile and why we spend that
extra few seconds with them, talking about how their day went and so on

To be dealt with in a prompt and courteous manner which is why we don’t keep them
waiting at reception, the bar, for room service, meals etc.

To receive assistance when necessary which is why we
have excellent product and local knowledge and why we
look for opportunities to pass this on to them whenever
we can, even without their having to ask

To be in comfortable, clean surroundings which is why
we make sure the facilities, rooms, grounds and
equipment are spotless

To feel remembered and recognised which is why we use the customer’s name as
often as we can

To be heard and understood which is why we listen to complaints and adopt the role
of their advocate whenever there is a complaint, problem or dispute. We want to fix
their problems, not create new ones.
Specific target market needs
A hospitality and tourism business will have customers from a number of different target
markets, each with their own specific needs. It is important that staff recognise the needs
of each target market and tailor their service accordingly.
The following are different target markets and their specific needs:

Business – computer and internet access, newspapers,
executive lounges, laundry services, business or executive
centre, business and news channels. Businessmen are
more likely to frequent a hotel bar and eat in the restaurant

Women – hairdryers, larger mirrors, healthier food options,
specific bathroom amenities, fashion magazines, bath.
Businesswomen are more likely to use the gym and eat
room service

Family – interconnecting rooms, costs, entertainment options, child care facilities,
children’s television programs, package deals and safety

Leisure – cheaper rates, local attractions, concierge services

Elderly – single beds, medical facilities, suitable food options and cheaper rates

Groups – need for large allocation of rooms, cheap rates, meeting rooms, specialised
menus, bus access and parking.
Wishes
These refer to the way in which our customers would prefer to satisfy a specific need, but
they may not have the resources to meet these wishes. They may wish to stay in the
luxury suite, dine at an internationally renowned, 5-star, fine dining restaurant and drink
expensive wines, but they haven’t got the money to pay for it so they settle for something
else.
© ASEAN 2013
Trainee Manual
Develop new products and services
25
Element 1: Analyse market
Expectations
Customers know they can’t afford the luxury mentioned above, but as a result of our
advertising and their previous experiences with us, they know they will get a clean and
satisfactory room, wholesome food at value-for-money prices and a good range of drinks
at fair prices to pick from, all delivered with great service - so they elect to stay and dine
with us.
Our big problems start when what the customer actually experiences is at odds with their
expectations.
Customers have perceived expectations of what level of service they expect when visiting
a venue arising from:

The company’s image or reputation in the market

Past visits

Advertisements and promotional messages

Competing hotels

Industry standards

Comments from family, friends and colleagues

Price charged for the offering.
Understanding needs, wants and expectations
Identifying needs, wants and expectations of the external customer are varied and are not
the same for everyone. In fact, the needs for the same customer may change on a daily
basis. It is important that staff remain aware of the satisfaction of customers and look for
ways to improve the experience for all customers.
In reality, most customer needs are quite simple and easy to accommodate. It may relate
to needing more pillows or towels, steak cooked a certain way, accommodation with a
specific view or a need for wake up calls or taxis. Quite often customers will let you know
of their needs through the use of direct questions.
However, some customers will not let you know if their needs are unmet and will leave a
venue disappointed with little or no prospect of a return visit.
Staff must be pro-active and try to anticipate the needs of
guests where possible. This can be achieved through:

Observation – quite often the body language of a
customer will indicate their true feelings. They could be
looking around for staff to serve them, angry or frustrated,
or simply disappointed in what has been provided

Asking questions – offer recommendations or if they want
things done a certain way

Putting yourself in the shoes of the customer – ask yourself ‘What would I like if I was
in their position?’ If guests have arrived from a long flight and look tired, a speedy
check in service is vital. You may also want to arrange room service dinner for them
whilst they are checking in so they can eat quickly and go to bed sooner.
26
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
1.4 New products and services are identified
Introduction
Once a hospitality establishment has conducted a range of
research activities as identified, it will have a fairly clear
understanding of what ‘new’ products or services can be
introduced to give the establishment a competitive
advantage or at least to provide greater value to customers.
Each organisation will come up with new or improved
offerings that will be unique to its mission and goals.
The range of products and services that can be introduced, however, are limitless and
either can be invented from scratch or may be a modification or copy of an offering that
already exists in the market place.
The hospitality industry is normally viewed as a ‘service industry’. However, very few
services are truly pure services, so products are defined to include services as well.
Products and services usually run on a continuum, with both types usually involving some
element of the other.
In hospitality the product/service offering is combined to
meet customer needs and consists of the following
elements:

A tangible product/products

Environment

Services.
Most products in the hospitality industry are combinations of tangible and intangible
elements. The food and beverages provided by the establishment are tangible elements,
while the friendly or efficient service is an intangible element. The gaming machines
provided at a casino are tangible entertainment, while the thrill or dream of winning is
intangible.
Products
What is a product?

The need-satisfying offering of a firm

Customers buy benefits, not features

Customers do not buy products for their own sake but rather to solve problems or
enhance their lives

The product should only be developed after a need has been identified and a target
market chosen to serve

Product decisions include quality, warranty, features, brand name, packaging and
labelling, product line decisions and product positioning

In product development, opportunities are sought from your external environmental
analysis and end user research
© ASEAN 2013
Trainee Manual
Develop new products and services
27
Element 1: Analyse market

The benefits of your product help define the industry you are in, your customers and
competitors

These benefits also help to identify sustainable competitive advantage flowing from
product differentiation.
Because goods are physical things, when you buy them you own them, and you can see,
touch and easily compare them to other similar goods.
Types of hospitality products
Whilst each hotel may be different some examples of products provided by hotels, as a
minimum, include:
Guest rooms

Comfortable bed

Extensive range of television channels

Access to movies

High speed internet access

Free local calls

Use of local smart phone

Amble space

Sound proof rooms

Individual cool /heating controls

Alarm clock

Coffee maker or complimentary coffee

Iron and ironing board

Full length mirror.
Bathroom

Bath

Shower

Full range of amenities

Hair dryer.
Hotel facilities

Gymnasium

Pool & spa

Golf course /recreation

Business facilities

Bar

Restaurant

Transportation services
28
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

Executive lounge

Access to public transport.
Services
A service is any activity or benefit that one party can offer to the other which is essentially
intangible and does not result in the ownership of anything. Its production may or may not
be tied to the product.
On the other hand, a service is a deed performed by one party for
another and the customer generally cannot keep it. A service is used,
consumed and experienced all at once.
Pure services are activities or benefits characterised by:

Intangibility

Inseparability

Perishability

Variability.
Intangibility
Because it is not physical goods that you can see, it becomes more difficult to know
exactly what you are buying. Hence, increased risk and uncertainty is involved in the
purchase decision. Buyers often resort to word of mouth or use price as a guide to quality.
With products, when you buy them you can see them and of course you own them. A
service, on the other hand, is a deed performed by one party for another. When provided
with a service, the customer cannot keep it. It is experienced, used and consumed all at
once. You cannot hold on to a service and it is more difficult to know exactly what you get
when you buy it.
Service companies aim to compensate or reduce this lack of tangibility by placing some
emphasis on tangible elements such as staff uniforms, decor of premises and visual
symbols and colours in an attempt to provide evidence of their ability to deliver
satisfaction.
Inseparability
Goods are usually produced, stored and then consumed,
whereas services are produced and consumed in the same
place at the same time. Sometimes called the ‘moment of
truth’, this moment provides management with a unique
opportunity to collect direct feedback from its source.
Perishability
A product not sold today can be stored and sold tomorrow with little additional cost
incurred. Services cannot be produced in large, economic quantities and then transported
to customers, avoiding or balancing extreme situations of peak demand or oversupply.
© ASEAN 2013
Trainee Manual
Develop new products and services
29
Element 1: Analyse market
Variability
With a manufactured product, quality control can be built into the production process.
Service products vary because:

Services are people based and employee performance varies

It is difficult to monitor the service product when the customer is present during
production or the service is on a one to one basis.
Types of hospitality services
Whilst each hotel may be different some examples of services provided by hotels, as a
minimum, include:

24-hour Concierge

Valet Parking

24-hour Room Service

Signature gift and sundry shop

Daily newspaper delivery

Business services

Laundry and dry cleaning services

Complimentary shoeshine service

Limousine and rental car service

Car detailing

Local tours

Interpretation services

Travel agent services

Restaurant and theatre bookings.
1.5 Opportunities to improve sales and services
are identified
Introduction
The last sections focused on analysing both the internal and external environments and
trying to understand how they will impact not only on the current business model and
operations but on future endeavours.
It also looked at the nature of products and services and considerations when identifying
new products or services.
Resulting from this analysis, a range of potential opportunities may be identified or it may
necessary to generate new ideas on how to improve the operations.
30
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
It is important to realise that a manager, whilst they may have responsibility for the
success of the organisation, can rely and utilise ideas and support from their team to
come up with creative and innovative ideas.
Any changes made in the workplace to improve work must be targeted at specific needs.
Ways to determine if there is an opportunity for improvement
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 market place. It also reinforces the need for new or modified
products or services.
Many staff see something that needs improving but do nothing
about it. They simply keep on doing what they have always done
even though they can see it is ineffective, inefficient, wasteful or
dangerous.
Many of them persevere with the way things are and see
themselves as martyrs for doing so!
As a responsible supervisor you cannot afford to adopt this
attitude or take this approach.
The keys to contributing to workplace improvements and getting other staff involved in the
process are to be proactive and lead by example.
On this basis, methods to identify workplace opportunities for improvements include:
Observing what occurs in the workplace
It is important when observing workplace practice to:

Observe at different times of the day. There may not be
a problem in reception at 3:00PM but there could be
one at 8:00AM. Observe at busy and quiet times, day
and night, normal trade days and times when you are
very busy

Observe different staff. Some staff struggle where
others don’t and identifying this is a legitimate thing to
do.
Often the solution is simply training but any situation where staff are having difficulties can
also point to potential problems relating to:

The initial selection process. Perhaps the process is not selecting the best staff

Induction. Perhaps not enough information or training is provided at the start

Poor layout. A redesign of the workplace may fix the problem

Lack of equipment. Perhaps more equipment is needed

Faulty equipment. It may be the staff are competent but the equipment is letting them
down

Lack of staff numbers. Perhaps the problem relates to insufficient staff being rostered
on to cope with peak demands.
© ASEAN 2013
Trainee Manual
Develop new products and services
31
Element 1: Analyse market
Develop and use a checklist to guide what you observe
Most properties will use a checklist for OHS inspections so it makes sense to develop an
‘improvement checklist’ to help guide and take notes about workplace practice which may
be able to be improved.
Involve workers in your observations
The importance of involving staff will be identified later in this section but using them in
observations has several benefits:

It demonstrates your willingness to collaborate with staff
and include them in the process

It provides a different perspective on what is observed
as well as contributing another orientation as to why it is
occurring

Workers in the area are usually best placed to make
recommendations about what needs to be done to fix
any identified problems.
Analysing documentation
To determine if the statistics indicate a need, such as:

Decreases in revenue and downturns in profit margins

Excessive overtime being paid

Too much wastage

Poor productivity figure

Trend

Failure to attain targets set for the business

High levels of staff turnover

Instances where there is a lack of compliance between
establishment and legal requirements and actual practice.
Being advised by management/owners
This includes being advised of the need for improvement based on their observation and
analysis of workplace activities and performance. This also embraces advice from
management regarding new business directions the business is aiming to take (such as
new target markets, new performance targets or new expected profit figures).
Monitoring the external business environment
This aims to identify if an opportunity is evolving or a threat developing in terms of what
the competition are doing. A threat causing a need for improvement may be the opening
of a new venue down the street. An opportunity may be the closure of a venue across the
road.
32
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Making ‘improvement/continuous improvement (CI)’ a standing topic in every staff
meeting

Raising the question of improvements regularly at staff briefings

Developing a CI team within your department

Placing posters around the workplace to encourage staff to ‘Think Smarter’ or similar

Providing a ‘Suggestion Box’ for staff to drop in their suggestions for improvement

Having an open door policy which encourages staff to come to you at any time to
discuss a topic for change

Implementing an ‘Improvement Award’ to be given to every staff member who comes
up with an idea for change which results in substantial improvement to a work
practice, service or product.
Involving staff
Involving staff in all or some stages of the analysis process is likely to achieve better
results.
It has several benefits including:

It demonstrates your willingness to collaborate with staff and include them in the
process

It shows you value their experiences and opinions

It provides a different perspective on what is
observed as well as contributing another orientation
as to why it is occurring

Workers in the area are usually best placed to
make recommendations about what needs to be
done to fix any identified problems

Staff will be the people who will need to implement the change. Therefore getting
them on board, having a degree of ownership and enthusiasm toward the required
change is paramount.
Generate a range of ideas or solutions
A manager must not only be open to ideas but must encourage enterprising behaviour
and risk taking. One of the cornerstones of this approach is the generation of new
business ideas.
When you have identified an area for improvement the next step is to generate ideas on
how to improve things
The ideas and possible solutions must be specific to that identified need or opportunity.
There needs to be a total focus on the issue and all its allied flow-on areas.
Common techniques to generate ideas include:

Talking to colleagues and supervisors to gain their insights, to learn from their
experience and to determine the impact of the issue on them and their area
© ASEAN 2013
Trainee Manual
Develop new products and services
33
Element 1: Analyse market

Looking at what happens in other venues. This can mean:

Using your network of industry contacts to visit other venues
and see what they are doing there. Talk to supervisors,
managers, owners at other properties and learn from their
experiences

Contacting industry peak bodies to obtain information about
relevant ‘best practice’

Reading industry literature

Using creative thinking techniques.
Creative thinking techniques
The generation of ideas for change and improvement can be achieved through using a
range of creative thinking techniques. Remember when generating ideas, that the
involvement of staff is instrumental in generating a variety of ideas.
These techniques are:
Brainstorming
Brainstorming is a useful tool to get as many ideas as possible in the given time available.
The general topic is presented and then people are asked to contribute their ideas in a
free-flowing manner.
One person acts as the recorder and writes down all the ideas shouted out. No
judgement, criticism or comment is made about the potential, possible use or applicability
of any of the contributions. They are simply quickly written down for later consideration.
After all suggestions have been made and recorded and no
more suggestions are forthcoming, each suggestion is then
further expanded on. This is done initially by the person
contributing the initial suggestion and then discussed,
considered and evaluated by all.
Suggestions may be voted on and prioritised whilst some will
be deleted from the list.
The suggestions which emerge as the ones with the most support will be further
evaluated and worked on.
Visualising
This involves thinking about a problem or opportunity and producing a mental image of
what is desired, required or intended. This mental image is then used to guide the more
concrete and physical aspects of the change.
The benefits of visualisation are it is a relatively quick activity, it’s cheap and the ‘end
result’ can be easily changed.
Making associations
Linking products or services to other ‘things’ can generate new ideas.
This involves identifying one or more items or services, and asking people to freely link
them to whatever pops into their mind. Once again, as with brainstorming, no ideas are
rejected or criticised, but with this approach people are asked to further explain their
contributions perhaps mentioning how things would work and the benefits which would
flow.
34
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Telling stories
The telling of stories to a focussed and captive audience is another way of generating
ideas.
The story may be true or fictional. True stories, especially ones related to the venue or
industry, have more impact as people (staff and customers) relate better and more
intimately to them.
The idea is to recount a story with a point. The story must convey a problem or
opportunity along the lines of the one being addressed by the improvement process. For
example, if the requirement is to develop an improvement to service levels, then the story
must focus on customer service.
Lateral thinking
Where new ideas are being sought, the use of lateral thinking can be an effective tool.
Lateral thinking is a problem-solving tool which adopts an alternative way of viewing the
problem in that the problem is approached from a number of different aspects rather than
focussing on just one angle.
This may result in people thinking of alternative perspectives from
which to view the problem or opportunity. The venue may have
previously only utilised a ‘property perspective’ while lateral thinking
will encourage a ‘customer perspective’.
Where a customer perspective was already the norm, lateral thinking
may begin looking at different types of customers based on their
demographics or other characteristics such as attendance patterns,
buying behaviour, or payment option.
This approach may also involve developing new uses for a product rather than the
traditional use so as to create a new market for an existing product.
It can also embrace bringing the techniques and strategies from another area or industry
into the melting pot of deliberations. For example, a hotel may draw on the examples and
thinking employed by a restaurant or the retail industry.
Lateral thinking may mean a venue takes its usual focus away from highlighting price and
begins to concentrate its efforts on, for example, taste, value-for-money, uniqueness,
brand status, ease of use, no wastage and environmental concerns.
Six thinking hats
In 1985 Edward de Bono developed what he saw as a better method of thinking using the
metaphor of six coloured hats – white, red, black, yellow, green and blue.
Each coloured hat refers to a way of thinking and de Bono suggested that, in order for any
issue to progress, all those involved in the discussion needed to be wearing the same
coloured hat at the same time.
In addition, because no single hat is right or wrong (they each represent different types of
thinking), they allow for consideration of a range of thoughts on any one topic thereby
enabling what de Bono calls ‘cooperative thinking’.
The white hat focuses on information, including hard facts and soft information such as
rumour and personal experience.
The red hat is tied to and permits emotions, feelings and intuition to be considered.
© ASEAN 2013
Trainee Manual
Develop new products and services
35
Element 1: Analyse market
The black hat is the critical thinking hat, making judgements and deciding if things are
right or wrong.
The yellow hat relates to values and beliefs.
The green hat is the productive hat asking for ideas, alternatives and possibilities.
The blue hat is all about process control and organising the other hats.
The hats are used by initiating discussion and asking people to put on, for example, their
yellow hat. During the discussion, only references from the yellow hat perspective are
entertained.
If someone contributes creative thinking ideas, their input may be met with ‘We’re doing
yellow hat currently but we’ll move on to green hat shortly’.
Alternatively, the group may decide ‘We need some red hat thinking on this topic now’.
Using relevant knowledge
In addition to the above creative thinking ideas, there is always the need to apply relevant
knowledge to a situation where workplace improvements are being considered.
This knowledge may be fact-based, experiential or obtained from a number of different
sources across a variety of knowledge classifications.
Technical knowledge
In some cases, but certainly not all, especially within the people business that is the
hospitality industry, there can be a valid need to apply specific technical knowledge to
suggestions, recommendations and contributions.
The point in applying technical knowledge is to define the
likelihood of success or acceptance of a particular
improvement. For instance, the concept being proposed
may be excellent from every conceivable angle but
assembling the technology and resources to implement
the idea may prove too expensive, physically too large or
aesthetically unpleasing.
In another instance, the concept, which may have resulted from a free-wheeling
brainstorming or similar session, is impeccable and exactly fits the requirements for the
need to improve but the technology has not yet been developed to allow its
implementation.
Service-based knowledge
This is a very important consideration in the hospitality industry and one that appears
often overlooked at the expense of other considerations that seemingly have little to do
with true, traditional customer service.
Application of this knowledge forces you to consider how any improvement or change is
likely to impact on the customer, and how that impact will flow on to customer satisfaction,
revenue, repeat patronage and the delivery of a service standard in keeping with what the
venue requires.
There is often a trade-off between service and other business imperatives. This is not to
suggest venues devalue service but it merely reflects the highly competitive and lean
nature of many operations.
36
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
When considering whether or not to compromise or reduce service standards, it may be
worth obtaining feedback from your customers about how this will change their buying
behaviour with you.
In some cases, they may be more than happy to exchange a reduced level of service for
speed, reduced incidence of errors, lower prices or some other bonus.
In other situations, service such as personal one to one attention, getting to know the
needs and wants of the customer and meeting them may be paramount above all else.
Information from different work areas
No department or section within a venue exists in isolation from other departments or
sections so it makes sense to include people and contributions from other areas within the
property when seeking to generate ideas for improvement.
There is a dual benefit in seeking input of this type. First, people from these areas have
some understanding of the way the business, as a whole, operates and so can integrate
this knowledge and understanding with the idea for improvement.
In this way, the change can be viewed more realistically within
the workplace context.
The second benefit is people from outside the department or
section can see the situation with a fresh pair of eyes. As the
adage goes ‘Sometimes you can’t see the wood for the trees’,
and the same can well apply within the venue.
It is possible for staff to get ‘store blind’ meaning they can’t see, even if they look at, what
other people notice straightaway.
This new, or alternative perspective, can be the very thing which triggers improvement or
provides the basis for an alternative approach which itself generates the eventual
solution.
Information from colleagues
Within the property there exists a huge reservoir of experience, talent and expertise. This
pool is your colleagues.
Regardless of whether they have been with the organisation for 12 days, 12 months or 12
years and regardless of whether they are office staff, reception staff, waiters, bar
attendants, room attendants, cleaners or managers, they all have something to contribute.
Two heads are better than one, so just imagine the potential provided by 100 heads.
Two alternatives exist when seeking ideas from this group:

Present the general problem or opportunity and ask for their input

Present a targeted potential idea or solution which has already been formulated and
ask for feedback on that.
The timelines which apply to making the improvement may dictate which option is used.
And a word of warning – don’t prejudge contributions from your colleagues. It is very easy
to form an opinion about a certain staff member or group of colleagues and, on that basis,
determine the contribution will either be worthless or valuable before you even see what it
is all about. As we never know everything there is to know about anyone, this
prejudgement can be fatal.
© ASEAN 2013
Trainee Manual
Develop new products and services
37
Element 1: Analyse market
Just because someone is new to an organisation doesn’t mean they can’t think creatively,
draw together strands others can’t or generate fresh conclusions from established and
given facts.
As we’ve said elsewhere, if you are going to ask people for help or ask them questions,
then listen to what they tell you. Don’t jump to conclusions, presume or presuppose.
Information gained from books and videos
Books, videos and other sources of information may be invaluable in providing initial
impetus for improvement, or for supplying support for suggested improvements.
Literature used, especially magazines, will normally be trade-related and focus on aspects
of the industry generally deemed to be of importance or merit.
Magazines or journals are especially useful in providing details and information on new
release items and products as well as supplying the latest in industry trends, statistics and
observations.
Videos tend to provide more specialist information and focus on one aspect, or one angle
of an idea. Useful videos can be commercially produced or those available from suppliers
and support industries who use them either as promotional or training tools.
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.
Your personal observations, research and meetings with various people including staff,
management customers will have identified areas where improvement is needed.
The information gathering phase will have generated
information to allow you to make legitimate and rational
decisions about the options which were generated.
The review phase should include evaluating the alternatives to
determine which ones remain as viable alternatives and which
ones should be discarded as inappropriate.
The review phase should include representatives of all those you regard as ‘stakeholders’
in the topic which is the focus of your considerations. This could include management,
customers, staff from the area itself, staff from allied areas, suppliers etc.
In order to conduct a truly inclusive review and evaluation you should:

Distribute material captured during the previous phase to all relevant stakeholders

Allow time for them to digest and question this material

Convene a number of meetings to discuss and air issues arising

Assess the options using all the information and knowledge obtained against criteria
which must include:

Relevance – specifically to the situation being considered. There must be an
almost laser-like focus on the issue to avoid debate being side-tracked to
peripheral and often unimportant issues

If there is a belief that other areas genuinely need to be considered then the
nature of the improvement needs to be reframed, or another separate issue needs
to be established for its own research or consideration
38
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market

Practicality. Any change for improvement must meet the ‘practicality’ criterion.
There are many elements to ‘practicality’ which will carry different priorities in
different venues and different settings.
Elements of practicality which need to be taken into account include:

Impact on other existing house protocols, policies and procedures. The fact an
improvement will impact on other areas of the business doesn’t mean you shouldn’t
proceed with the improvement, it just means you have to be aware of the need to take
action in these other areas to implement, accommodate and integrate the
improvement

Impact on layout – where there needs to be substantial changes to venue layout this
adds another layer of complexity and expense to a solution

Staff ability – where staff currently do not possess the technical skill or knowledge
required to implement the improvement, this may signal a need for training or the
need to hire trained staff. Where staff have to be trained or hired this can involve a
time lag in the implementation of the improvement or change

Cost – this is always a consideration. Cost relates to cost of purchasing resources,
staff training or opportunity costs. No improvement, it seems, is possible without cost
of some sort and no improvement can be implemented without due thought to the
expense it will involve

Impact on service delivery taking into account service speed, quality, access to
products or choice.
1.6 Product and service range is monitored to
identify the demand for individual items and
seasonal variations
Introduction
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.
Before we can explore the expected demand of specific products and services in the short
term or based on seasonal influences, is it important to consider the expected lifecycles of
new products or services.
This helps us to identify when new offerings will be in its greatest demand during its life
cycle and expected changes that need to be made in times where demand may have
diminished, for various reasons.
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
© ASEAN 2013
Trainee Manual
Develop new products and services
39
Element 1: Analyse market

Market growth

Market maturity

Sales decline.
Market introduction
In market introduction, sales are low as a new idea is first introduced into the market.
Additional promotion at this stage is advised to inform potential customers of the benefits,
use and location of the new product or service. At the introduction stage there are usually
large losses in anticipation of future profits. Expenditure is high and it takes time for
customers to learn of the product/service and for costs to be recouped.
Market growth
At this stage, industry sales are growing fast. Industry profits rise and then start to fall. An
innovative company begins to make larger profits as more and more customers buy the
product or service. However, competitors notice this opportunity and enter the market.
Some imitate or copycat the products or services and some attempt to improve on the
offering or to refine it.
This is the time of highest profits for the industry, but also a time when individual profits
decline as competition increases.
Market maturity
Market maturity occurs when industry sales level off and competition becomes even
tougher. Many aggressive competitors have entered the market for profits, unless an
oligopoly situation has developed.
Industry profits decline throughout the market as competitors cut prices and more is spent
on promotional costs to increase or maintain market share. Less efficient competitors
cannot sustain this price competition and are forced to withdraw.
To enter the market at this stage is both difficult and
expensive. Late entrants bypass earlier stages of the lifecycle,
including the profitable market growth stage, and have to
compete with experienced and established competitors who
fight hard to defend their revenue and market share.
Decline
During sales decline, new products or services begin to replace old. Price competition
from dying products or services increases but companies with strong brands should
continue to make profits until the end of their lives. This is usually, either because they
have successfully differentiated their offering, or successfully established their brand
name in the mind of the customer.
Variations in product and service lifecycles
Product and service lifecycles are different lengths for different offerings. An offering with
a greater comparative advantage over its competitors will move more quickly through the
earlier stages of the lifecycle and will rapidly increase its sales.
If an offering can be tried on a limited basis, without much risk to the customer, then it can
usually be introduced more quickly.
40
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Shorter lifecycles
This is where technology changes quickly and competitors are able to rapidly imitate,
meaning some markets move quite rapidly into maturity. These shorter cycles can have
an impact on the overall profitability of innovative organisations.
The increasing speed of these lifecycles mean that if companies want to remain
competitive, they must continue to develop new product ideas and must aim to make the
most of the market growth stage when profits are high.
Sales of some offerings are heavily influenced by fashions and fads. Fashion-related
products tend to have shorter lifecycles. What is currently popular can shift suddenly.
Marketers must be prepared to modify offerings quickly according to the currently
accepted popular style.
Identifying demand for individual products and services
Before individual products and services can be selected for implementation it is wise to
understand and identify the degree for demand for items.
Many organisations will conduct some kind of market demand analysis to determine the
level of demand that may exist and the level of expected profitability this demand may
attract.
There are many ways in which to check demand for specific products and services.
Naturally if they are in existence at the moment, often in competing properties.
Ways to identify demand includes:

Observation – you may be able to observe the patronage
of specific items by sight. This can include the popularity
of specific menu items or themed cuisine, through to
popularity of bars or spas

Conduct a trial run – this may be a ‘limited offer’ or
‘special promotion’

Place an advertisement to identify the level of interest in a
products

Sales records. Whilst this will certainly be the most accurate measurement of demand,
this may be hard to access if it only exists in competing properties

Suppliers. They will be able to provide information as to where their products have
been placed, the volume of business and trends

Industry associations. They will be able to provide information relating to sales
statistics

Journals and articles. They may contain informational articles and reviews discussing
the popularity or success of products or services recently introduced into the market

Other hotels in the chain. Many hotel chains are made up of a large number of
properties. These hotels can discuss the success and failures of new initiatives

Competitors. You may have contacts with other hotels who may be willing to share
information

Feasibility study. Conduct a study into the interest in specific items or services.
© ASEAN 2013
Trainee Manual
Develop new products and services
41
Element 1: Analyse market
Understanding seasonal demand
Many hospitality businesses will have different degrees of
demand at different times of the year. Naturally beach side or
ski resorts will have easily identifiable seasons in which
changes in demand can easily be identified.
That said, not every product or service sells at the same pace
throughout the year. There are bound to be peaks and troughs
on the sales graphs with the coming of different seasons and
different months.
Also different target market segments will have different times for demand. For example,
business trade is higher on weekdays whilst the leisure market will peak over weekends.
It is important to look at the demand of each individual target market segment plus the
overall level of demand of the customer base as a whole.
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.
It is quite common for hospitality organisations to change products and services at
different times of the year to maintain demand by a wide variety of market segments.
1.7 Product and service range is planned
Introduction
Once ideas for products and services have been identified as a concept, further thought
must be given to how it is to be introduced into the market.
Product or service management includes a wide range of management activities, ranging
from the generation of a new idea for a product or service to eventually introducing it into
the market and providing ongoing training and support to staff and customers.
Every hospitality business conducts product and service development, whether it's done
intentionally or unintentionally.
When a new product or service is introduced into an organisation, there are a number of
considerations that need to take place to ensure that it is successfully implemented to
ensure the greatest impact and possible advantage to the organisation.
In many cases, when a specific product or service is introduced it has a wider impact on
existing products and services by creating new opportunities or challenges which need to
be overcome.
This section will explore a number of considerations that must be given in relation to
choosing products and services for implementation into the market.
42
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Product considerations
There are many aspects of a ‘product’ that must be considered when introducing it to the
market. Some of these have been identified below.
Product line decisions

Individual product or product line compatibility

Product line – a set of products that are closely related

Product line depth and breadth

Convenience, impulse, emergency, staples

Shopping

Unsought, newly unsought, regularly unsought

Specialty.
Packaging

Opportunity to promote the product

Opportunity to protect the product

Improve the basic product.
Warranties

Warranty - what the seller promises about the product and expressed warranty (over
and above the law)

Covered by both common and statutory laws

Goods must be of merchantable quality and fit for the purpose.
Branding

Provides identification and differentiation

Makes shopping easier for the consumer

Acts as a cue and a source of information to the
customer

Develops a relationship with the customer

Adds value to the product in the customer’s mind (brand
equity)

Gain good shelf space - widespread distribution

Consistent quality is guaranteed

Price can be high enough to support branding.
Brand rejection

Brand non-recognition

Brand recognition

Brand preference
© ASEAN 2013
Trainee Manual
Develop new products and services
43
Element 1: Analyse market

Brand insistence

Individual versus family versus generic brands.
Developing new products and managing existing ones to meet market conditions, and
eventually to plan for their successors, is an important part of operational strategy.
Service considerations
As service is an important element of a hospitality offering, there are specific
considerations that must be taken into account.
The four characteristics of services and their implications are provided in the following
grid.
Service Characteristics
Considerations
Examples
Intangibility
Must reduce customers’
perceived risk.
Build relationships, clean
environment, friendly service.
Provide physical evidence.
Inseparability
Service provided in customers’
presence. Opportunity for
direct feedback.
Importance of staff training,
selection and recruitment
procedures
Perishability
Aim to balance supply and
demand as services cannot be
stored.
Just-in-time inventory control,
Quality Management principles
Variability
Service is performed for each
customer.
Importance of staff training and
quality assurance
Each individual product or service may require a different target market and a different
strategy. Even those companies which manage one product only have to alter it because
of technological improvement, changing tastes and preferences in the market place.
44
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 1: Analyse market
Work Projects
It is a requirement of this Unit that you complete Work Projects as advised by your
Trainer. You must submit documentation, suitable evidence or other relevant proof of
completion of the project to your Trainer by the agreed date.
1.1 To fulfil the requirements of this Work Project you are asked to conduct a market
analysis of a hotel of your choice, based on an existing hospitality establishment.
As part of this project you are required to:

Identify four key target market segments

Identify the main needs of each of the target market segments

Conduct a brief SWOT analysis

Identify five new products or services that may appeal to the target market
segments. These examples will be the basis of work project questions in
Sections 1 – 4 in this Manual. Therefore choose carefully.

Identify five examples of how sales or services may be improved for existing
offerings

Explain how you can identify possible demand for your new products and
services.
© ASEAN 2013
Trainee Manual
Develop new products and services
45
Element 1: Analyse market
Summary
Analyse market
Target markets are identified in accordance with enterprise marketing and merchandising
policies

A changing environment

The customer

Identify market segments

Benefits of market segmentation

Generic market segments

Hospitality market segments

Tourism market segments

Identifying target market segments.
Analyze market competition

What is market analysis?

Current market situation

Situation Analysis

Analysis of external environment

Analysis of internal environment

Summary of a SWOT analysis.
Client requirements are monitored informally in order to evaluate market trends and client
needs

Understanding customer needs

Understanding needs, wants and expectations.
New products and services are identified

Products

Types of hospitality products

Services

Types of hospitality services.
Opportunities to improve sales and services are identified

Ways to determine if there is an opportunity for improvement

Generate a range of ideas or solutions.
Product and service range is monitored to identify the demand for individual items and
seasonal variations

Product and service lifecycles

Variations in product and service lifecycles

Identifying demand for individual products and services

Understanding seasonal demand.
Product and service range is planned

Product considerations

Service considerations.
46
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
Element 2:
Evaluate market trends in food
production and/or food and beverage
service
2.1 Identify and access information sources on
market trends in food production and/or food
and beverage service
Introduction
In section 1 of this manual, the focus of research has been based on
understanding the market. This includes customers, both potential and
existing, the forces impacting an organisation by both internal and
external environments and different opportunities that may present
themselves for the development of new products or services.
This section will focus on a different but also very important research
direction – that of understanding trends affecting the industry as a
whole, different businesses within the industry and customers
themselves.
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.
Regardless of types of trends being researched, the basic options for gathering
information have been identified below. The keys, however, to this step are to:

Be proactive

Keep an open mind

Using a variety of sources

Recording what you find.
Types of information sources
There are a number of sources that will be a great starting point to get an overview of the
industry as a whole and the trends that may impact a business and the selection of new
products or services they are thinking of introducing.
Colleagues, supervisors and managers
These people are your first-line sources of information. You should feel free to ask them
questions whenever you need to find information. Get to know them and actively seek out
their opinions, experiences and views. They can help you find out what is happening,
where the business is heading, what they think of the industry and its various
stakeholders and what they intend doing personally.
© ASEAN 2013
Trainee Manual
Develop new products and services
47
Element 2: Evaluate market trends in food production and/or food and beverage service
Talking to these people demonstrates your interest in the industry and the more you talk
to them the easier it will become to ask subsequent questions.
Representatives
Many suppliers have sales representatives who call on the business on a regular basis.
Sales representatives, known also as ‘sales reps’ or just ‘reps’, visit the business for
public relations (PR) purposes or to introduce new products. These PR calls are courtesy
visits where they don’t actually ask for anything but simply call in and ‘have a chat’.
This talk can be useful in finding out what is happening at other businesses, trends in the
industry, new products, blackout periods and impending price rises.
They are an excellent source of information, certainly about their products, but also about
the industry in general because they visit so many businesses and speak to so many
staff.
Developing your own industry network
As a member of the hospitality industry, it is vital to build
your industry network. This involves reaching out to all
people in all aspects of the industry and discussing industry
happening, trends and current information. The more
people you meet and the more information you accumulate
provides you with a sound understanding of the industry
and will help your career progression.
To develop a useful and representative network of contacts you will need to make
deliberate attempts to target and talk to people you respect within the industry including
owners, managers and others.
Make yourself known and visible and keep yourself ‘in the loop’ which means:

You need to contact your network when you find out
something you think they might need to know. This
highlights the two-way nature of the concept of networking

You need to occasionally contact them just to ‘keep in
touch’ even when there is nothing specific to pass on to
them. Often they remember something they need to tell
you and your call demonstrates you value them as a
contact.
Conferences and seminars
You should attend these whenever possible and make an effort to attend a major one at
least every two years. Let your employer know you are interested in attending and keep
an eye in the media and trade publications about events that are coming up.
Conferences and seminars are extremely useful because they are:

A great source of industry contacts. It is beneficial to begin
‘networking’ as soon as possible

Good sources of new ideas, new products and new industry
thinking

A good opportunity to share and test ideas.
48
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
If you can’t attend them, then make sure you read about them in the trade magazines or
make contact with someone who has attended.
Product launches
You are in a good position to attend many of these by the virtue of being in the hospitality
industry. Sales representatives may give you an invitation or an invitation may be given to
all staff at your workplace. These events are good networking opportunities and they also
provide product knowledge about the product being launched.
Trade magazines
Different sectors within the hospitality industry will have
their own publications.
Hotel school publications
Tourism and Hospitality educational providers around the
world often have a dedicated research or on-line library
containing latest information specific to industry.

Cornell University School of Hotel Administration http://www.hotelschool.cornell.edu/research/chr/pubs/.
Newsletters
These usually come in electronic form and are mostly free of charge. They are often
produced by industry suppliers or support services and made available as a marketing
tool. They commonly contain a significant advertising component but also contain useful
information that can be readily applied to working life. Examples include:

Ehotelier – http://ehotelier.com/hospitality-news/archive.php

Restaurant Hospitality – http://restaurant-hospitality.com/newsletters/

Hotel Resource –
http://www.hotelresource.com/Newsletter-index.html

Hospitality Sales & Marketing Association
International –
http://www.hospitalitynet.org/organization/17001014.ht
ml

‘Daily News for the International Travel and Tourism
Industry’ – www.traveldailynews.com/

‘e-Global Travel Media’ – http://www.eglobaltravelmedia.com.au/mailindex.
Brochures
Most suppliers and service support industries provide various
forms of printed information that can assist with information in
relation to:

Product information

Services provided

Contact details for their business.
© ASEAN 2013
Trainee Manual
Develop new products and services
49
Element 2: Evaluate market trends in food production and/or food and beverage service
Advertisements
Whether in the newspaper or in other formats (brochures, TV, flyers) these are an
excellent source of information about new products and services, changes to existing
products, process, special deals and offers.
Reference books
There are many reference books available covering many
areas of the tourism and hospitality industry:

www.lonelyplanet.com

www.travelguideuniverse.com.au

www.roughguides.com.
Internet
Some of the above ‘written material’ sources are internet based. However, the internet is
a great source of much more. You should develop a list of favourites and bookmark them
for ready reference. These might include:

Suppliers – there are many suppliers who will have their own websites.

Industry associations.
Global Examples:

The Air Transport Association (IATA) – www.iata.org

World Tourism Organisation – http://www.unwto.org
International Hotel & Restaurant Association – http://www.ihra.com/

World Hotel Association – http://worldhotelassociation.com
Regional Examples:

ASEAN Tourism – http://www.asean-tourism.com/

Pacific Asia Travel Association – http://www.pata.org
Country Examples (Indonesia):


Association of Indonesia Tours and Travel – http://www.asita.org

Indonesia Hotel & Restaurant Association (IHRA) – http://www.ihraonline.com
Government bodies:


Asian Hospitality & Tourism Association – http://www.asianhta.org
Specific properties.
It is worth subscribing to any information services, newsletters etc. they offer as they are
usually free. It should become standard practice for you to do a ‘net search’ whenever you
are looking for something, seeking inspiration or wanting to check things out.
50
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
Government bodies
The ASEAN region, whilst working collectively to achieve a primary purpose of attracting
tourism to the region as a whole, each participating government will also have their own
websites and departments in which to collect information. They have been identified
below.
BRUNEI
Tourism Development Division
Ministry of Industry and Primary Resources
Jln. Menteri Besar, Bandar Seri Begawan, Brunei Darussalam
Tel. (673-2) 382822 Fax. (673-2) 382824
Email: info@bruneitourism.travel
Website: http://www.bruneitourism.travel/
CAMBODIA
Ministry of Tourism
3, Preah Monivong Blvd, Phnom Penh, Cambodia
Tel. (855-23) 213911 Fax. (855-23) 426107/217503
Email: dgpro@camnet.com.kh
Website: http://www.tourismcambodia.com/
INDONESIA
Ministry of Culture and Tourism
Jl. Medan Merdeka Barat 17, Jakarta 10110, Indonesia
Tel. (62-21)3838157 Fax. (62-21) 3849715
Website:
http://www.budpar.go.id
http://www.my-indonesia.info
LAOS
National Tourism Authority of Lao P.D.R.
Lane Xang Avenue, P.O. Box 3556, Vientiane, Lao
P.D.R.
Tel. (856-21) 212248 Fax. (856-21) 212769/2127910
Website: http://www.tourismlaos.gov.la/
MALAYSIA
Ministry of Tourism
Menara Dato' Onn
Putra World Trade Center, 50480, Kuala Lumpur, Malaysia
Tel. (603) 2693 5188 Fax. (603) 269 0207/2693 0884
Email: tourism@tourism.gov.my
Website: http://www.tourism.gov.my
MYANMAR
Ministry of Hotels and Tourism
No. 77-91, Sule Pagoda Road, Yangon, Myanmar
Tel. (95-1) 285689 Fax. (95-1) 289588/254417
Email: dht.mht@myanmar.com.mm / mtt.mht@mptmail.net.mm
Website: http://www.myanmar-tourism.com/
http://www.myanmartourism.org/
© ASEAN 2013
Trainee Manual
Develop new products and services
51
Element 2: Evaluate market trends in food production and/or food and beverage service
PHILIPPINES
Department of Tourism
DOT Building, T.M. Kalaw Street, Agrifina Circle, Rizal Park
Manila 10004, Philippines
Tel. (632) 523 8411 Fax. (632) 521 7374
Email: deptour@info.com.ph
Website: http://www.wowphilippines.com.ph/
SINGAPORE
Singapore Tourism Board
Tourism Court, 1 Orchard Spring Lane, Singapore 247729
Tel. (65) 736 6622 Fax. (65) 736 9423
Email: stb_sog@stb.gov.sg
Website: http://www.yoursingapore.com/
THAILAND
Tourism Authority of Thailand
1600 New Phetchaburi Road
Makkasan, Ratchathewi, Bangkok 10400, Thailand
Tel. (662) 250 5500 Fax. (662) 253 7437
Email: center@tat.or.th
Website: http://www.tourismthailand.org
VIET NAM
Viet Nam National administration of Tourism
80 Quan Su Street, Hanoi, Viet Nam
Tel. (84-4) 822 8744 Fax. (84-4) 942 4115
Email: binhvnat@hn.vnn.vn
Website: http://www.vietnamtourism.com
This section has identified a wide range of information sources from which to gather
information about trends in the industry. It is essential to keep up to date with industry
information by being an active member of the industry.
2.2 Evaluate market trends for relevance to the
enterprise current and potential markets
Introduction
It is important to not only understand the needs of target market segments, as identified in
section 1.3 of this Manual, but in society as a whole to ensure that any information
collected about potential customers is kept current.
It is so easy to operate on out of date information, and it is truly amazing how quickly, yet
seemingly without any obvious indication, potential and existing customer demands
change.
This means it is a must to access information about these
changing needs and to relate that data to our customers and
their needs.
These can be caused by media articles, personal experience
and anecdotes from others.
52
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
There is a need to keep alert to information that indicates these changes. The usual
sources are personal observation including talking to customers, suppliers and members
of your various networks, the media, trade magazines, consumer groups and other stores.
When these changes are identified, the key is to take some sort of action to exploit
opportunities and to minimise any potential adverse effects.
Types of industry statistics and trends
Industry statistics
Industry statistics are popular amongst both employees within the hospitality industry as
well as consumers. Statistics prove a ‘snapshot’ of important information which can be
examined and applied to improve business operations, attract new markets or build
confidence in the eyes of a consumer.
Whilst there are endless statistics that can be researched, some of these include:

Types of tourism and tourism businesses

Types and demographics of customers

Top destinations

Hotel occupancy percentages

Reasons for stays

Current industry information

Destination countries

Departure months

Length of stay

Type of organisation for the trip

Transport mode

Accommodation type

Expenditure

Popular tourist attractions.
General industry trends
Once again, understanding of current industry trends helps operators
within the hospitality industry gain an understanding of what may take
in the future. This helps to determine strategy and develop a
competitive advantage over competitors. Current trends, which are
again endless, may include:

Great comparison-shopping by consumers

Tourism and hospitality related applications (‘apps’)

Women-only floors with appropriate amenities

Quick, affordable bursts of fun in lieu of longer excursions or breaks including unusual
one-off experiences and mini-vacations

Countries such as Myanmar becoming more attractive to Western travelers
© ASEAN 2013
Trainee Manual
Develop new products and services
53
Element 2: Evaluate market trends in food production and/or food and beverage service

App creators are looking for new ways to break through language barriers

Websites offering personalized activities and tours offering an eclectic mix of
opportunities

Forward-thinking hotels and airlines are using RFID and NFC, combined with
customer phones, to smooth and speed up the experience

Hotels are also enabling guests to use NFC-equipped smartphones as room keys

Booking agents to overlay the social graph, asking users to
sign in with their social media accounts for the opportunity to
hand-pick desirable seating arrangements

As the middle market shrinks in the developed world, more
brands will find ways to provide special service to customers
with the means to spend. VIP treatment is becoming common
at amusement parks.
Tourism patterns
There may be events that can markedly change the pattern of tourist activity – either
dramatically increasing or decreasing trade.
Some impacts can be very short-term, while some are ongoing.
Causes may be acts of terrorism, the price of petrol, campaigns to promote certain
geographical areas or events, seasonal factors (the beach and the snowfields, for
example), a pilots’ strike and the state of the economy.
Technology
In just about all products and services, there are quantum leaps in technology that have
the potential to have implications for us.
New technology can mean changing cost structures, obsolescence, and new products.
Changes in technology can present new opportunities for us to incorporate technology
into the operation of our business. Examples include the introduction of debit payment
cards or EFTPOS (Electronic Funds Transfer at Point of Sale), computer-based
accounting packages, security and surveillance equipment and POS (Point of Sale)
equipment.
Changes in technology also enable us to provide new services such as computer-aided
demonstrations, high-tech diagnosis and Internet connections that allow transmission of
digital images.
Changes in technology also mean that new products, or at least variations on existing
products, are continually coming onto the market. This means we have to:

Keep up to date with new products

Staff need appropriate training in regards to product
knowledge

Advertising has to be revised.
Customers are also aware of the latest trends and advances in
technology. The Internet and pay TV are some factors influencing
their awareness.
Organisations need to monitor these changes in technology and ensure that they provide
products and services that reflect these advances while matching identified customer
needs.
54
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
Leisure time
There has been a supposed increase in the leisure time that people have available to
them. However, many seem to think that despite all the labour-saving devices and the
shortening of the working week, people in fact have less leisure time available to them.
This means you have to find out whether leisure time is a significant factor for your
customers:

Do they have time to play?

If so, how can you service that need?

What sort of leisure activities are they interested in? When?

Is there an opening for you to sponsor them or their club?

Can you access the others who engage in that leisure activity?

Alternatively, can your business do something that introduces
some aspect of leisure into the busy working lives that they
have?
Environmental issues
These issues seem constant, but there appear to be changes within this category as
different issues gain currency, public interest or political worth.
Air pollution, recycling, solar and wind power, water consumption, saving the whales and
the dolphins, and lowering greenhouse gases are all examples of what can classify as
current environmental issues, as is energy pricing.
It is also important that the establishment can demonstrate that it is environmentally
sensitive. Flyers and notices around a hotel explaining what they are doing to protect the
environment can be beneficial.
The business may also join various environmental groups as part of their contribution to
the environment, and register to join the various environmentally oriented organisations
that exist. These may focus on energy saving, recycling, lowering emissions and correct
waste disposal methods.
Discount operators
The marketplace is a dynamic environment and one constant
element is the existence of discount operators. These
businesses regard price as their prime selling tool and attract
sales simply by virtue of offering the lowest selling price.
Hospitality businesses need to be aware of the existence of
these operators so that they can take appropriate action to
compete.
Appropriate action may be to meet the process offered by the competitors, but it is
preferable to compete on another platform rather than pure price. Where two businesses
compete just on price, both tend to lose.
Alternative action can include:

Promoting the other services you offer – excellent service, high levels of product
knowledge, home deliveries, after sales service, friendly staff, warm environment, over
the phone service, lay-bys, gift-wrapping, interest free periods
© ASEAN 2013
Trainee Manual
Develop new products and services
55
Element 2: Evaluate market trends in food production and/or food and beverage service

Stressing the value and quality components of your products and services. Rather
than asking people to consider price, ask them to look at status, durability, the fact
that your products are well-known and respected, they have wonderful guarantees
and warranties and that people can feel comfortable in buying and using a recognised,
national/international brand

Presenting your extensive product range. You may decide that
you have an outstanding and incomparable range: that is what
you must promote and make people aware of

Providing your specialist knowledge. You may have
outstanding knowledge, experience and expertise in a certain
area and that may be the hook to hang your hat on. Nowhere
else can people get such exceptional information than from
you!

Offering a range of products at different price points to cater for all groups at a range
of buying levels. Price points are the selling prices you have goods available at so that
different target markets are attracted. Traditionally, but by no means in all cases, there
are three price points:

One at a low level (basic product)

One at a medium level (basic product with some
options/better quality)

One at the top level (best product, all options, best
quality).
Having these three options gives choice to customers
and encourages customers to think along the lines of
‘good, better, best’

Bundling. Instead of competing head to head on price, you might decide to price
bundle so as to cloud actual selling prices and make it more difficult for customers to
compare just on price alone. Price bundling is where you offer for sale a number of
things at an all-up price, and don’t sell them individually priced

Offering giveaways. This may be pretty close to competing on price, but it is different.
In this option, you give customers a free XYZ.
To sum up, when you know that discount operators are in your trading environment, you
need to do something intelligent to meet that threat.
Customer demands
The key to knowing about changing trends, from a marketing perspective, is that this
information needs to be related to customer-focussed concerns.
Your market research will have identified the areas and issues that are important to your
various target markets, so profiling the business’s customers requires that you relate
these to the products and services you are offering.
The point being that you need to be able to identify, understand and explain how your
products meet the specific classifications of customer demands that exist within your
different market segments.
These customer demands may vary according to:

Personal preference

Health factors
56
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service

Age

Cultural group

Dietary issues

Price

Contemporary eating habits

Media influence

Cultural and ethnic influences

Seasonal and popular influences

Major events and festivals.
Quality demands
Changing trends have revealed several customer orientations to quality.
While there appears to be a constant customer demand for quality products and services,
there is an emerging appreciation by customers of value for money quality.
Staff members, regardless of organisational type or position, can benefit from actively
conducting research about their industry. Any small piece of information, when applied
correctly, can make all the difference on a customer’s experience with your organisation.
2.3 Identify and access relevant information to
assist development of new products or
services
Introduction
One of the major steps in relation to the introduction of products and services is to
undertake a series of development activities to help facilitate the smooth and successful
implementation of new or improved offerings.
As mentioned, 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.
New product and service development
New product and service development is risky, both financially and in terms of human
resources. Design, research and development costs, as well as promotional and staff
training costs, can be expensive if the new product fails.
A new product or service may fail for many reasons. Not offering a unique benefit or
underestimating the competition are common mistakes. Sometimes the idea is good but
there are design problems or the costs too much to offer. Not moving fast enough means
competitors copy your offering and beat you to the market place. Alternatively, rushing an
offering to market at the expense of developing a complete marketing plan can mean the
offering is doomed to failure.
© ASEAN 2013
Trainee Manual
Develop new products and services
57
Element 2: Evaluate market trends in food production and/or food and beverage service
The risks in new product and service development include:

Developing a new product or service first and hoping it will sell

Financial risks - market research, staff consultation, market trial/testing

Duplication from competitors. Even if a patent or copyright is protecting your product,
competitors only need to vary the prototype slightly to have an acceptable imitation
that does not infringe copyright

The time taken to develop new products or services,
particularly in fast moving industries.
To be able to move quickly and in order to avoid expensive new
product or service failure it is wise to follow an organised new
product or service development process. These steps include:
1. Idea generation
2. Screening
3. Idea evaluation
4. Development - technical and commercial
5. Commercialisation.
Idea generation
New ideas can come from a variety of sources including the company’s own analysis of
external opportunities and analysis of present or future buying behaviour patterns. Other
new ideas can come from:

Company’s own sales or staff

Trade associations

Government agencies

Advertising agencies

Industry associations

Customers who have a need and approach the
establishment directly

Hierarchy of needs.
Finding new ideas should not be left to chance. Companies need a formal procedure for
seeking new ideas.
Screening
Screening should consider how attractive the new product or service will be both in the
short term and the long term. Screening should involve how successful the product and
service will be throughout the duration of the lifecycle.
Additionally, criteria should be used that includes a resource analysis (strengths and
weaknesses), a long run analysis and a review of the company’s objectives.
58
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
Idea evaluation
To evaluate ideas a process called concept testing is used. This involves obtaining ideas
from customers about how well a new product or service matches their needs. It is
important to aim to make estimates of likely costs, revenues and profitability. Market
research can be used to help identify the size of potential markets.
In this step, enough information should be gathered to ascertain whether there is an
opportunity, whether it matches the company’s resources and whether there is a basis for
developing a competitive advantage.
Development
In the case of a new service offering, the company should
develop details of what training, equipment and the like will be
necessary to deliver the service idea.
It is desirable to test models or prototypes that lead to
revisions in specifications before the company commits itself
to full-scale production. Sometimes market testing is utilised at
this stage.
Commercialisation
At this stage, the product emerges from the new product or service development process
to be placed on the market. It is here that the strategic market planning mix is finalised.
© ASEAN 2013
Trainee Manual
Develop new products and services
59
Element 2: Evaluate market trends in food production and/or food and beverage service
Work Projects
It is a requirement of this Unit that you complete Work Projects as advised by your
Trainer. You must submit documentation, suitable evidence or other relevant proof of
completion of the project to your Trainer by the agreed date.
2.1 To fulfil the requirements of this Work Project you are asked to research and identify
five trends that may affect a hospitality sector of your choice. You are also required
to explain where this information was sourced.
2.2. To fulfil the requirements of this Work Project you are asked to explain how you can
evaluate market trends.
2.3. To fulfil the requirements of this Work Project you are asked to outline a step by step
approach or strategy for developing the products and services you mentioned in the
Project activity in Section 1 of this Manual.
60
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 2: Evaluate market trends in food production and/or food and beverage service
Summary
Evaluate market trends in food production and/or food and beverage
service
Identify and access information sources on market trends in food production and/or food
and beverage service

Types of information sources.
Evaluate market trends for relevance to the enterprise current and potential markets

Types of industry statistics and trends.
Identify and access relevant information to assist development of new products or services

New product and service development.
© ASEAN 2013
Trainee Manual
Develop new products and services
61
Element 2: Evaluate market trends in food production and/or food and beverage service
62
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
Element 3:
Create products or services based on
market analysis and within budgetary
constraints
3.1 Incorporate relevant market trends into food
service and menu planning
Introduction
One of the areas of a hotel in which new products and services may be introduced is in
food and beverage operations.
This includes both front of house (restaurant) and back of house (kitchen) operations.
This section will explore:

Different aspects for consideration when planning menus

Common food trends that have been identified in different parts of the world.
Types of menus
The specific types of menus offered in establishments will depend on:

The establishment’s hours of business

Types of customers, and their reasons for dining

Time constraints

Skill of the staff.
Overall, it could be argued that menus are reasonably similar in that they offer the diner a
choice of different dishes to eat.
From a structural point of view, however, they differ slightly, and
can include the following types:
Table d’hôte
French term used to describe what is more commonly known as
a set menu.
One or more dishes can be offered per course. It can also
feature an all-inclusive price per person.
This type of menu also allows for some dishes to be preprepared, and is therefore appropriate in an environment where
cost of labour and food is an issue.
© ASEAN 2013
Trainee Manual
Develop new products and services
63
Element 3: Create products or services based on
market analysis and within budgetary constraints
Table d’hôte menus can be presented in the following ways:

Verbally

Menu card

Board (chalk, illuminated, printed etc.)

Illustrations.
À la carte
This term is commonly referred to but rarely applied.
To serve a true à la carte menu means that the kitchen should be preparing all dishes
when ordered specifically by the customer.
In other words, cooking for a particular dish should not begin until the order is placed in
the kitchen.
The concept is also expanded to suggest that the diner will create his/her own meal from
the card.
As à la carte menus generally require more well-trained staff, the number of
establishments offering this type of service has fallen dramatically; particularly after the
recession of the 1980s.
À la carte menus are usually presented in a printed or written form to the diner.
Banquet
Banquet menus, also known as function menus, are similar in
structure to table d’hôte menus in that they are usually menus with
limited choices and fixed prices.
They are ideal for larger groups of people who intend to dine at
the same time.
These functions may be celebratory, that is:

Wedding

Birthday

Business-based conferences

Seminars.
Dishes selected for banquet or function menus are specifically geared to satisfy the
greatest number of people, and avoid (as a general rule) using exotic ingredients, or
dishes that may be inappropriate from a medical or religious perspective.
Banquet menus are normally pre-organised, although menu cards are sometimes placed
on the tables to indicate the menu to the diners.
Types of service
Due to the large diversity of cultures that can accumulate due to modern tourism, it can be
difficult to define what should be served and when.
Many people, when they travel, want what they eat at home to be available wherever they
go.
The following services should be used as an approximate guide only.
64
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
Breakfast

Normally served from 6.00 am. - 10.00 am

Western (European and American) styles of breakfast are
broken down below.
Continental
‘Continental’ is a term used to describe what might be available in
France or Germany i.e. Continental Europe as opposed to
England.
Type of bread or pastry such as croissants, baguettes, and toast
served with a preserve or honey, finished with coffee.
English breakfast
Hot breakfast which can include fried bacon rashers, eggs (scrambled, poached or fried),
grilled lamb cutlets, grilled tomatoes, fried mushrooms, kedgeree (curried fish and rice),
fried kidneys, livers, toast.
The cold part of the English breakfast includes the continental breakfast as well as cereal,
selection of juices, tea and/or coffee.
American
Similar to English, except hot cakes/pancakes are also served with whipped butter, maple
syrup and sometimes with bacon rashers.
Eastern
Asian styles of breakfast whilst not served in the mainstream include simple rice-based
dishes such as congee (rice porridge), broths, fish, fruit etc.
Morning tea
Morning teas are normally served between 10.00 am - 11.00 am.
British in origin, a traditional morning tea will include a selection of sandwiches, scones
with jam and cream, small cakes, pastries and fruit plates. These are accompanied by tea
made in pots.
Brunch
Brunch is a combination of lunch and breakfast, and is usually served between
approximately 9.00 am to 12 noon.
Similar foods to an English breakfast are quite often served, although sliced meats,
cheeses, and other slightly more substantial food is served.
Lunch
Lunch is normally served between 12 noon - 3.00 pm.
It is more often than not considered a utilitarian meal. In other words, it serves to satisfy
hunger, and get the diner back to work.
From a menu planning perspective, most lunch diners are usually on tighter schedules,
i.e. less than one hour.
© ASEAN 2013
Trainee Manual
Develop new products and services
65
Element 3: Create products or services based on
market analysis and within budgetary constraints
The actual food served has to reflect this. Few diners
have more than two courses during this period.
There are no hard and fast rules governing what can or
cannot be served at the lunch table. However, pasta,
salads, light grills, seafood and sandwiches are popular
choices.
Afternoon tea
Served between 3.00 pm. – 5.00 pm, it is similar to morning tea, although there is
sometimes more emphasis on cakes.
High tea
High teas are served from 5.00 pm - 6.30 pm.
Rarely conducted in Australia, high teas consist of snacks, tea, cheeses, seafood or egg
dishes.
Dinner
Designated the main meal of the day, dinner is normally served any time between 6.00
pm. – 10.00 pm.
More relaxed than the lunch meal, it is quite normal for diners to allocate up to three hours
for dinner.
The actual dishes presented can often be more elaborate, and diners will quite often eat
three or sometimes four courses in one sitting.
The type of food served is similar to the lunch menus, except meat, game and seafood
main courses are more predominant.
Supper
Usually served from 10.00 pm, the food is both simple and easy to prepare.
Hot and cold dishes include soufflé, sandwiches, smoked salmon, desserts, coffee,
chocolates and snacks.
Menu constraints
Menu length
The number of dishes offered per course as well as the numbers
of courses themselves will be influenced by the following factors:

Cost to maintain each dish on the menu

Ready availability of ingredients

Time available to prepare ingredients.
It makes little sense to offer dishes that either do not sell well, or
are time consuming and expensive to create.

The number of dishes offered on a menu has to be based on
the above factors.
66
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
In this context, it is quite suitable for some establishments to offer up to 100 different
dishes, whereas others will struggle with 20% of that number.
Most menus these days offer menus in a three or sometimes four course format. These
will normally include the following:

Starters

Main course

Dessert

Cheese.
Modern day menu layouts
Menu layout should be appropriate to the type of establishment or situation.
For example, a leather bound multi page menu may be considered suitable in more
formal dining rooms but be unnecessarily extravagant in a corner milk bar.
By the same token, a chalk board or illuminated menu would look equally inappropriate in
a fine dining establishment, but be perfectly appropriate in a casual dining environment.
Some of the better restaurants will have a manageable menu comparable to the number
of staff in the Kitchen
Entrée

6 or 8 offerings.
Mains
One or two of each of the main foods:

Beef, Lamb, Chicken, Fish, Seafood, Vegetarian options.
Side orders

Potato dish (hot)

Green vegetable (hot)

Salad (cold).
Desserts

Chocolate flavoured

Citrus flavoured

Hot dessert

Cold dessert (ice cream).
Cheese plate

Cheddar, brie, blue cheese.
© ASEAN 2013
Trainee Manual
Develop new products and services
67
Element 3: Create products or services based on
market analysis and within budgetary constraints
Coffee selection
Italian style predominately but Greek and Turkish styles may also
be offered.
Most places only offer one style of menu; International Hotels with
multiple food outlets may offer several forms of menu.
Menu balance
When determining the actual content of the menu – in terms of courses to be offered and
in terms of dishes within each section – there is a need for ‘balance’.
Balance means many things. Balance can mean different things to different people, and
different people place the emphasis on different aspects of the menu, dishes and related
areas.
It can embrace:
Balance in terms of prices

Offering something along a variety of price points so that all pockets are catered for.
Bear in mind, however, that some venues deliberately set high prices in order to give
the impression of prestige, or price out those who they may consider unworthy of, or
unfit to dine in their establishment.
Balance in terms of ingredients

Offering something that suits everyone. Where the premises is not a restaurant
specialising in a certain food item (e.g. beef, seafood, vegetarian), then there is a
need to make sure that we provide for those who want steak, fish, chicken, pasta etc.
Balance in terms of cooking styles

Ensuring that not all dishes are deep fried, or grilled, but offer a selection of cooking
methods to cater to suit personal preferences including roasts and wet dishes.
Balance in terms of complexity and simplicity

It is great to offer menu items with complex sauces but it is also
important to offer a range of items that are beautiful in
appearance and tasteful to the palate by virtue of their simplicity.
Balance in terms of traditional dishes and new
experiences

Many premises will seek to provide a selection of dishes that can
be seen as time-honoured along with a choice of new dishes
perhaps featuring novel ingredients and fresh cooking or
presentation approaches.
This is especially the case where a chef has a ‘signature dish’ that people travel long
distances to experience.
68
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
Balance in terms of taste

Presenting a variety of taste sensations that enables those seeking a spicy dish, a
creamy dish, or a sour dish to be accommodated.
Final menu considerations
Establishments may use the following means of deciding on the final composition of their
menu:
Personal likes and preferences of the owner/manager

Some dishes will find their way onto the menu simply because the owner likes it and
has always felt there is a market for it.
Equipment available in the kitchen

Some dishes can’t be produced unless the right equipment is available, and very few
kitchens are able to contain all items of cooking equipment.
Staff skills

There are doubtless many dishes that require a certain
level of experience and expertise. Not everyone can cook
everything and the industry is currently experiencing a
shortage of trained and experienced chefs.
Historic records

Previous sales will be a good indicator of what should be
kept on your menu and what dishes could be replaced:

A regular analysis of actual sales can be an illuminative
undertaking to determine what is selling well, what isn’t
and exactly how many of each item is being ordered
sold.
Market research

This can include proactive questioning of patrons:

Simply factoring in the ‘by the way’ feedback that is received from customers at
the completion of their meal, or

Asking them as they are leaving; this can be an accurate indicator of what they
think about current offerings

Ask them what they believe should be changed.
Seasonal offering

Enterprises will change their menus as the seasons change to offer regular variety
and to take advantage of cheaper items that are in season:


Many establishments prefer a set core of menu items supplemented by ‘house
specials’ that vary daily or weekly to provide variety
Many establishments change their menu every three months:

As well as having additional special short-term menus for occasions such as
Christmas, Valentine’s Day, Mother’s Day, St Patrick’s Day etc.
© ASEAN 2013
Trainee Manual
Develop new products and services
69
Element 3: Create products or services based on
market analysis and within budgetary constraints
Staff numbers

More kitchen staff will generally mean more alternatives can be offered:


Where there are very few staff this means that generic cooking styles must be
used and there is less scope for the more complex dishes
Many dishes in such a kitchen will be prepared in advanced rather than being ‘cooked
to order’ so as to speed up service.
Contractual requirements

There will be instances where franchise operations are required by the terms of their
contract to have certain dishes on the menu.
Demographic considerations
It is also useful to consider the demographic of the dining public that is being attracted to
the venue.
This accepts that young people and older people are likely to prefer different dishes and
men and women may also have different tastes.
Consideration of the eating public also has implications for serving sizes, and the
inclusion of national dishes.
Some establishments will acknowledge the likelihood of children dining with them, and
feature a separate Children’s menu, or a Children’s section on their normal menu.
Where the business has a strong local ethnic population, their likes and dislikes may also
be reflected on the menu.
Local produce
Local produce may also be a prime consideration when planning a menu.
This may be in order to:

Promote a local industry or product

Take advantage of lower costs involved in
buying local

Cater to tourists who may be seeking a taste of
the local region.
When deciding on menu items to be included on
the menu, menu suggestions must be balanced in
terms of cost and variety and to reflect the type of
enterprise and regional location.
Commercial venues must operate at a certain profit level to remain viable, and control of
food cost is a critical aspect of this.
70
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
3.2 Develop products and services to take
account of market trends
Introduction
As mentioned in Sections 1.3, 2.2 and 3.1 of this Manual, the importance of
understanding trends is vital to ensure that any new product of service that you consider
introducing has a unique place in the market and is in fact needed and seen as value to
the end user.
As mentioned previously, there is no point introducing a product or service if the end
consumer does not want it.
Understanding trends
Trend Analysis is the practice of collecting information and attempting to spot a pattern, or
trend, in the information.
Each organisation will have their own way to collect and analyse information to determine
which products and services are not only popular and in demand now, but will also be in
the forseeable future.
Any hospitality manager must not only understand current trends but also try to predict
future trends that may impact on the existing market or potential markets in the future.
Every organisation will have its own ideas as to what is the ‘next big thing’ customers
want.
Regardless of what trends may indicate, you must be able to produce a product or service
that is seen as modern, fresh, innovative but more importantly, of ‘value’.
It is important to remember that customers will decide what they
want to spend money on. The business itself may have ideas about
what they consider to be in trend.
One good way to see if a product or service is ‘trendy’ is to observe
its popularity in other hotels or hospitality organisations. If a
number of hotels are doing it and it is working, then obviously it is
popular at this time.
That said, you can’t ask all customers their opinion. As stated
before, it is vital to keep up to date on industry news through a
variety of information sources as identified in Section 2.1 of this
Manual.
Examples of global food and beverage trends
Whilst it is essential to understand general menu planning for a commercial operation, it is
also vital that those who are creating menus also have a grasp of the current food and
beverage trends from around the world.
On the following pages are examples of food and beverage trends that have been
identified in various parts of the world.
© ASEAN 2013
Trainee Manual
Develop new products and services
71
Element 3: Create products or services based on
market analysis and within budgetary constraints
F&B trends – Global
Source: http://lowfatcooking.about.com
Here are the top 10 trends:
1. Quick Fix: People want to eat at home: 77% of all dinners were eaten there, but
people want less hassle in the kitchen. Easy to prepare and ready to eat are key
ingredients for most of us. We should expect to see more ultra-quick foods, bagged
salads and side dishes.
2. Drive-and Go: More of us are ordering take-out from
full-service restaurants.Take-out sales from these
restaurants account for almost 10% of sales. More
than half of Americans eat this way during the week.
3. Inherently Healthy: Consumers are increasingly
choosing naturally healthy foods such as fruit,
vegetables, salads, nuts and yogurt.
4. Fancy: People are choosing premium, gourmet foods.
Fish, in particular, is undergoing something of a
gourmet makeover.
5. Farm-Friendly: Organic and natural are hot and so is fair
trade. Expect cocoa to follow on the heels of coffee and
tea.
6. Layering of Flavors: Flavoured oils and vinegars, pairings
of fruity and tangy flavors, Asian, Central American and
Latin American flavors are in vogue.
7. Grazing: Healthier snacks in vending machines, singleserving snacks, nutrition bars, diet bars, energy drinks and
mineral waters are ‘in’.
8. Low, No, and Less: Demand for low calorie and light
products will continue to grow. Watch for allergen-free claims
on food labels.
9. Doctoring Through Diet: Nearly two-thirds of shoppers tried
to manage or treat a condition through diet. 72% of this effort
addressed heart health. Next to low fat, whole grains were
the most influential food label claim, influencing 62% of
shoppers. Dairy products with cholesterol-lowering sterols,
antioxidant-rich chocolate are making an appearance. Expect
more functional foods to appear.
10. Global Gangbusters: Health and convenience rule.
72
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
F&B trends – America
Source: http://restaurant-hospitality.com/
Trends
The Pie’s the Limit: Move over cupcake, make way for pie, as
pies in all sizes move from the state fair to seriously craveable
fare. Decadence is endless with everything from savoury, sweet,
individual deep-fried pies, bite-sized minis and even pies
blended into shakes.
New Mom & Pop Shops: Realizing the time is now, and if
you‘re going to do it, you might as well do it your way. Partners
are opening self-financed and self-built restaurants. These are
small places with fewer than 40 seats, designed by friends or family.
You’re the One: Single-purpose restaurants are serving variations on one thing. Don‘t be
surprised to see the Peanut Butter Palace, French Dippity Dog or even the Big Biscuit,
serving biscuit sandwiches and Eggs Benedict, opening soon.
Shrink Wrapped: Traditional meals are going the way of the fun-size snack. Smaller
portions are perfect for smaller wallets and eating on the run. Look closely for mini pizzas
and bagels, two-bite hot dogs, mini tacos or burritos, cake truffles, even pot roasts and
pot pies, all downsized. Small is big.
Marketing 101 Night & Day: Restaurants and high-end quick-service operators are
joining with farmers, artisans and specialty purveyors, reinventing the food hall.
Restaurants are also expanding by opening quick-service windows which is opening a
‘window’ of opportunities.
Desert Menu: Restaurants are abandoning descriptive market jargon (like cooking
method, sides or adjectives), instead highlighting only the key ingredients. You may not
know exactly what you will be getting, but trust us, it‘ll be good.
Talk Dirty to Me: In search of simplicity and pure flavors, chefs are abandoning sauce.
Instead, they are using powders, crumbles, dustings and ‘dirt’ crafted from cookie crumbs,
dried mushroom powder, dehydrated beets etc.
Fire it Up: Extending way beyond wood-fired pizza, restaurants all over are roasting
vegetables directly in embers and slow-roasting whole animals or large cuts of meat over
wood-burning fires.
Haute Dogs: Hot dogs are the new burger as chefs reimagine them with boutique-style
sauces and gourmet toppings. Hot dogs will escape from specialty stands and venture
into restaurants as chefs dress them up. This wiener is a winner.
Ahhhh Veg Out: Even meat-minded chefs are vegging out as flexitarianism goes
mainstream. Meatless Mondays and vegetable-based tasting menus are gaining traction
as guests realize it‘s not all about the meat on the plate.
It’s Fry Time to Eat Your Veggies: It‘s the revenge of the dreaded vegetable as we
discover that veggies everyone loves to hate can taste really good when fried. New
favourites include fried cauliflower, Brussels sprouts chips and kale chips.
Chefs Are Going Soft: Soft serve plays hardball as chefs and restaurants dress it up in
designer duds. Look for savoury soft serve, soft frozen fruit, high-end interpretations and
cocktail-driven creations.
© ASEAN 2013
Trainee Manual
Develop new products and services
73
Element 3: Create products or services based on
market analysis and within budgetary constraints
Press Junk-It: Munchies are moving to the forefront as chefs reinvent junk food in
gourmet ways. We‘re waiting to see what talented chefs come up with as they reinterpret
favourite junk treats.
Pop Goes the World: And chefs follow suit with spiked,
salty, sweet and savoury popsicles in exotic and alcoholic
flavors. Pop rocks!
Cultural Integration: Yogurt moves from snack to staple
as it takes leading roles in sauces, dips, spreads and
desserts. Expect to see it in new forms, including sundried, freeze-dried, smoked and pressed, as well as
cultural variations like skyr (from Iceland) and labne (from
Lebanon).
Swede Inspiration: Thanks to Noma and Nordic innovation, northern ingredients and
culinary trends are headed south.
Our Daily Bread: Chefs are reconsidering the bread basket and serving special housemade breads with intention and attention, including special plates and butter service.
Going Belly Up: Goat and lamb belly gain on the ever-popular pork as prices rise and
chefs and guests look for the next favourite ingredient. There‘s no such thing as a belly
flop.
Hot ingredients for next year include:

Pimento cheese

Necks (lamb, beef, goat, pork)

Whey

Kumquats

Smoked oils, butter, cumin

Hay

Popcorn

Hummus

Pretzels

Honey.
F&B trends - Australia
Sources: www.thinkingaustralia.com, www.watoday.com
1. More people taking to street food with more dining and food trucks and street vendors.
2. The push for greater simplicity will also be seen in menu offerings.
3. More focus on frozen foods and meal times will keep evolving in line with our 24-hour
lifestyles.
4. Expect to see more fast food, solo dining and breakfast on the move.
5. Health will continue to frame people‘s eating choices.
6. Alcohol consumption will become even more niche-focused with the rise in low and no
alcohol beers and wines, micro beers and spirits and cocktails.
74
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
7. Healthy seafood will replace beef and lamb.
8. Entertaining friends at home will continue to rise.
9. Expect shoppers and food sellers to become more ecoconscious, so there will be a big focus on packaging and
recycling.
10. More people eating organic chocolate as a low fat
alternative.
11. More focus on gluten free foods.
12. More use of citrus as a cleanser.
13. Bad habits will continue such as the consumption of nostalgic comfort food that takes
you back to your childhood.
14. Social networking will play a bigger role. Not just Facebook and Twitter but also the
phenomenal growth in food blogs.
15. There is also the phenomenal growth in apps for iPhone users.
16. Rise of the so-called ‘flexitarian’ or ‘social carnivore’ who will only eat meat when
they‘re out dining with friends.
17. Small plates, shared plates, mini-burgers and mini-desserts will become even more
popular as people focus more on their health and waistlines.
18. More nutrition advice.
19. People will continue to demand ‘local’ produce although we can expect the definition
of ‘local’ to expand. People want to know where their food is coming from, particularly
meat.
20. More chic packaging and iconic budget brands.
F&B trends – South Africa
Source: www.whalecottage.com
1. More ordering of “retro cocktails and high-end spirits” and craft beers, away from
mass-produced alternatives, at fine-dining restaurants, as restaurant patrons want to
celebrate their increasing confidence in the year. Prediction is a greater focus on nonalcoholic cocktails in general, and cocktails for designated drivers in particular.
2. Restaurants are becoming mobile, moving location, without a fixed abode.
3. Technology in restaurants, to gain a competitive edge, including iPads with menus
and winelists, and hand-held devices for payment at the table, will grow.
4. Greater use of social media marketing, location-based advertising and online
reputation management.
5. The trend of ‘Tired of being poor’ could see restaurant patrons spoiling themselves
with indulgences on higher-priced menu items.
6. Customers are demanding even greater value for money, and restaurants will have
permanent value offers on their menus.
© ASEAN 2013
Trainee Manual
Develop new products and services
75
Element 3: Create products or services based on
market analysis and within budgetary constraints
7. Restaurant chains will reinvent themselves with new branding and looks, as
customers look for new and exciting places to celebrate the new found financial
freedom.
8. Customers will be enticed back to restaurants with old favourites, new experiences
and plenty of love.
9. Supermarkets are increasingly competing against restaurants, offering their customers
family value for money eat-in ideas and products. Locally, supermarkets are taking
customers out of restaurants and into the aisle. ‘Warmth and hospitality’ cannot be
bought in a supermarket, and are points of difference for restaurants.
10. Restaurant menus will see a balance of healthy (starters) and indulgent (desserts)
items.
F&B trends – Asia
Source: www.asiatatlerdining.com
1. Savoury and sweet pies as the one that will dominate in restaurants next year.
2. Mini-sized: "Small: mini portions, mini desserts”.
3. Bellies of goat and lamb will replace the overpriced pork belly.
4. Popsicles with unique flavours such as sugar-snap pea.
5. High-end junk food including munchies we grew up on are going to show up with
interpretations done by chefs in the most unique ways.
6. Quality Homemade pastas.
7. Premium international beef.
8. Serious bar food created with care and thought. Ingredients
is of course the key, but flavour and texture is the most
important when it comes to bar food.
9. Sustainable seafood and reducing our carbon footprint. Whilst people are in search of
rare and precious ingredients, alarm bells have rung for the limitation of today‘s food
stock.
10. Texture and the return to real wholesome food, based on nostalgic pleasure. Food
with real texture using exceptionally noble ingredients and prepared with precision is
back.
11. Wine-friendly cuisine.
12. For those with a sweet tooth, the use of herbs and vegetables in the pastry kitchen.
13. Cupcakes and macaroons are here to stay. Thanks to their versatility, you can keep
on changing them, making new flavours and shapes.
14. Chefs will continue on the quest for good products, products which are altogether
healthy and tasty and come from production that respects the environment.
76
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
F&B trends – India
Source: Indian Restaurant Association
1. Healthful and flavourful foods
2. Use of fresh and authentic ingredients
3. New fusion ‘East meets West‘ concepts
4. More vegetarian options
5. Adding more and new spices
6. More quick service Asian (Korean, Indonesian, Japanese, Chinese) restaurants
7. Ethnic and regional cuisine
8. Restaurants with entertainment
9. Menu diversification – more choices
10. Multi-cultural menus
11. Back to basics
12. Chefs go casual, cheap goes ‘chic’
13. Use of raw foods
14. Fast convenience foods.
3.3 Develop products and services to take
account of enterprise operational constraints
or limitations
Introduction
In Section 2.3 the steps associated with product and service development were identified.
Once actual products and services have been determined, based on customer needs and
trends, they need to be implemented in accordance with organisational requirements,
constraints and possible limitations.
This section will focus on the internal impacts and requirements associated with
introducing products and services.
Each organisation will have a range of enterprise operational requirements, constraints or
limitations that will affect the implementation of products and services.
Organisational requirements
These will differ between businesses, products and services but
may include:

Access and equity principles and practices

Maintaining ethical standards

Meeting goals, objectives, plans, systems and processes
© ASEAN 2013
Trainee Manual
Develop new products and services
77
Element 3: Create products or services based on
market analysis and within budgetary constraints

Legislated obligations

Management and accountability channels

Manufacturer’s and operational specifications

OHS policies, procedures and programs

Quality assurance and continuous improvement processes and standards.
Involve stakeholders
Involving stakeholders in the process of identifying requirements can be time-consuming
but it is beneficial in that it can help determine:

Quantities of items to be obtained or prepared

Timelines that apply

Restrictions that apply – such as preferred supplier
arrangements, budget, compatibility, space issues,
compliance requirements

Compliance issues that need to be addressed

The needs of those who will be using the product

Customer needs, wants and preferences

Introduction and commissioning requirements

Training required

Financing arrangements.
Capabilities and resources
In Section 3.1 a range of capabilities and resource considerations were detailed in relation
to implementing menus for restaurants.
The use of resources are important activities in any business, especially when introducing
new products and services.
There is a need to make sure the organisation has the resources it needs to achieve its
identified business objectives, while at the same time, ensuring that money is not wasted
on resources that are not necessary or inappropriate to the task.
Resources can encompass:

Physical resources

Human resources

Financial resources

Intellectual property.
While the exact nature, type and quantity of resources
required by an organisation will vary depending on the
products and services being introduced, common resources
requirements include:

Location/premises

Occupational health and safety (OHS) resources
78
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints

Plant/machinery

Raw materials – used to produce the products or service

Refurbishment requirements

Staff amenities

Stock and supplies – used to support the operation of
the new product or service

Storage space – for stockpiling items produced (where
applicable) and for business records

Technical equipment and software

Staffing

Training

Training materials.
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. These stakeholders, as mentioned
above, include:

Customers – they are the most important stakeholder as they will be the ones who will
decide whether to make a purchase or not

Owners – they will be funding the activities

Managers – this will affect operational aspects and
delivery

Finance – they will need to determine budgets for new
products

Human Resources – they will need to construct training
programs

Sales and Marketing – they will need to sell the new ‘offerings’ to customers and
inform media through public relations activities

Staff – they will be the persons working with new products or providing new services
Normally the introduction of products and services is a positive step and it is essential that
everyone has a clear understanding of what is being introduced and their role in its
introduction, implementation and operation.
© ASEAN 2013
Trainee Manual
Develop new products and services
79
Element 3: Create products or services based on
market analysis and within budgetary constraints
Communicate information about new products and services
As mentioned above, there are many stakeholders who will need to understand the
details of new products or services that are being introduced. This is essential to ensure
that accurate product and service knowledge is not only understand but communicated
with others.
This product and service knowledge can therefore include:

Details about physical products - where they are made, their characteristics, their
price and availability, how to buy those products

Information about the services that are available –
including who provides the service, when it is available,
how much it costs, what it involves, what it is like and how
to book it

Information on prices, specials, deals and packages –
being able to explain how these benefit the customer,
what savings they involve, when they are available, when
the offer finishes, who is eligible for them and how to obtain them

Details about the operation of the business. This may
cover things such as facilities available, policies and
procedures, opening and closing times for departments
and services, what deposits are required with bookings,
methods of payment accepted by the venue, peak and
slow trading times, names of staff and management,
contact details of the property, the quietest
accommodation rooms, the location of the best seats in
the restaurant and the number of rooms on each floor.
Both employers and customers expect all staff working with new products and services, to
have a substantial body of knowledge about them.
Develop organisational policy, procedures and standards
With the introduction of new products and services comes the need for standards to be
introduced to ensure there is a consistent level of performance which must be reached
and maintained.
A policy is a statement about an issue in the workplace and says what the business
intends to do about the issue.
A procedure sets out step-by-step instructions on how to deal with an activity in the
workplace.
Organisational policy and standards for service may relate to:

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.
80
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
Effective communication of expectations
After developing policies and procedures, certain expectations will come to light.
With the aim of enhancing customer service quality, in both high volume and low volume
situations, it is critical to share these with staff.
Having developed the required customer service standards for your establishment, they
need to be communicated to those who need to know them.
Whilst most of the communication of standards will come from departmental managers
and supervisors, staff can also communicate amongst themselves to ensure everyone
understands exactly what is required and the procedures to follow to ensure the
standards are met.
Communicating customer service standards can come in many different ways including:

SOPs

Job descriptions

Task sheets

Orientation programs

Formal meetings

Staff briefings at the start and end of shifts

Training sessions

Observation and mentoring

Informal communication during a shift.
Communicating new approaches to service delivery
The communication of new service delivery approaches may occur in various ways.
The key to communicating these changes is that the communication must be planned.
Your approach should follow these guidelines:

Hold a formal staff meeting to inform staff of the changes. If staff have been actively
involved in the development process then the changes made should not come as a
surprise to them

Remember it is important not only to explain the changes but also explain why they
were necessary

Give staff a hard copy of the new service approaches. Give them everything that is
applicable to their area such as:


Copies of plans

Copies of standards

Copies of policies

Copies of procedures
Explain the changes. Tell staff how the ‘new’ service delivery differs from the previous
service delivery. Be specific – give real examples of ’what you used to do’ and what
you will do in the future
© ASEAN 2013
Trainee Manual
Develop new products and services
81
Element 3: Create products or services based on
market analysis and within budgetary constraints

Give staff demonstrations (where applicable) of the new service delivery protocols so
they can see what is involved and visually tell the difference between the old and the
new

This also gives them a clearer appreciation of what the revised service procedures are
all about - actions speak louder than words

Tell staff about the dates for introducing the new service procedures. Traditionally
there will be a lead time where new procedures will be phased in

Reassure staff they are not required to implement the changes ‘tomorrow’

Inform staff of the training being provided to support them in implementing the new
requirements. Let them know when and where the training is happening, what it will
involve and who will be leading it

Encourage questions from staff about the changes. Answer them fully and honestly

Make yourself available outside this meeting for staff to talk to if they have concerns
regarding the changes

Post new checklists relating to the changes in appropriate parts of the venue

Include new policies, procedures etc. in operational manuals, induction programs and
in-house training

Schedule staff to attend sessions to obtain necessary training to assist with
implementation of the changes

Introduce the changes and monitor their implementation. Run through the new
procedures at staff briefings and again at debriefings

Provide feedback to staff as appropriate including additional training where necessary.
Creating operational checklists
A checklist is a type of informational job aid used to reduce failure by compensating for
potential limits of human memory and attention.
Checklists are essential when new products and services are introduced as many staff
members may not be aware of what is expected or how activities should be carried out.
It helps to ensure consistency and completeness in carrying out a task. A basic example
is the "to do list." A more advanced checklist would be a schedule, which lays out tasks to
be done according to time of day or other factors.
Checklists are often presented as lists with small checkboxes down the left hand side of
the page. A small tick or checkmark is drawn in the box after the item has been
completed.
Checklists can be developed reflecting:

Job descriptions

Policies

Procedures

Task sheets

Recipes.
As can be seen, the introduction of new products and services is not as simple as coming
up with an idea. There is a great deal of time, thought and planning that goes into the
process.
82
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
3.4 Construct products and services to meet
profitability targets
Introduction
Naturally the introduction of new products and services normally is an expensive exercise,
not just from a financial point of view. It can also take an added emotional toll on all
involved in the exercise, as stress levels will increase.
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.
This section will explore the number of financial considerations that must be carefully
identified.
Initial costs
A great deal of cost is often associated with the introduction of new products and
services.
Some of the financial costs associated with the introduction of new products and services
include, but are certainly not limited to:

Closure of revenue generation outlets or rooms

Refurbishment costs

Purchase of furniture, fixtures and equipment

Removal of old equipment

Project management planning and implementation
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’ with how to deliver new products
or services.
The resources associated with the introduction of products and services are often limited
by the budget available for this task.
Management will determine the level of funding available for materials, plant, machinery,
etc. and make an amount available through its budgets. The budgets may be a set dollar
figure or a percentage of revenue.
© ASEAN 2013
Trainee Manual
Develop new products and services
83
Element 3: Create products or services based on
market analysis and within budgetary constraints
Establishing budgets
Importance of budgets
When people go into business they will be investing large amounts of money, on which
they will want to earn some return. They will also be using the business as their way of
earning an income on which they will live. They will do this by selling something to
customers, spending part of the money collected from customers on the operating costs
of the business, and keeping whatever is left as their profit, which is their income.
Large amounts of money are likely to be involved – possibly several hundreds of
thousands in setting up a business and hundreds of thousands in sales each year.
All this money must be managed very carefully, or the business will not produce a good
income for its owners and managers, and may even fail altogether. Budgeting is just a
normal business practice in helping managers to look after the money invested in their
business and the money going through it in revenues and operating costs
What is budgeting?
Budgets can be plans about the short-term future of up to a year.
They can be expressed in money terms, or in terms of quantities
of things such as goods in stock, number of seats, and number of
customers to be served per day, number of desserts expected to
be ordered.
The plans should help managers achieve their business
objectives.
The objectives of businesses are about managing how well the investment and assets are
being used, and about how well the sales effort contributes to the profitability of the
business.
A budget therefore is a statement of management’s planned outcomes for the business,
expressed in dollars or quantities to achieve its objectives for a precise period of time.
Budgeting for new products and services
Where a new business is opened or a new product or service is introduced a budget will
be prepared (known commonly as a ‘pilot budget’) that cannot use historical information to
guide its formulation.
Industry statistics may be used, as well as figures from other properties, or from
elsewhere within the establishment.
Understandably, these budgets are frequently at significant variance.
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. It is
common for managers to have troubles setting pricing strategies for
new products or services. Some use inappropriate approaches, for
example, attempting to always be the lowest-priced player in the
market, while others fail to change their approach to take advantage
of market changes.
84
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
The success of your products and services relies directly upon your ability to sell them,
which in turn is dependent upon your pricing strategy. If your prices come in too low, you
won't make a reasonable profit. Go too high, and you may weaken the demand for your
offerings.
So how do you get the right pricing model in place?
There are a number of measures you can take to accurately price your product or service.
By using creative judgment and an understanding of what motivates customers, you can
increase your chances of attracting the target market segments to your offering.
Pricing questions
The following questions are designed to help you determine whether or not you have set
accurate prices for your product or service:

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?

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?
Pricing considerations
Price indicates ‘value’
Understand that a price suggests a certain value to a customer or target market segment.
Setting a price that is either too high or too low can limit your business growth. It can also
cause considerable issues for your sales and cash flow. No business wants to make a
loss.
Understand customer perception of ‘value’
You will be able to improve profit by understanding the value of your product to the target
markets you are attracting or aiming the product or service to. The price of the product or
service is your financial reward for providing the product; the value is what your customer
believes the product is worth. Evaluate the benefits your product offers to your customers
and how price affects their buying decisions.
Consider fixed and variable costs
Take into account both the fixed and variable costs involved in
producing your product or service. Fixed costs, such as
electricity, production costs or insurance, remain constant no
matter what you produce or sell. Variable costs, such as wages
and materials, rise with the amount you produce or sell. When
setting a price, you must take in more money than just the
production cost, so you can make a profit.
© ASEAN 2013
Trainee Manual
Develop new products and services
85
Element 3: Create products or services based on
market analysis and within budgetary constraints
Consider the competition
Align your prices with those of your competition as far as possible. Never price your
products too much higher or lower than your competitors without having a very good
reason. If you do, you must have a clear identifiable factor which
the customer can understand.
Consider different price points
Use different pricing tactics to attract customers while maximizing
profits. These include offering special prices during promoted
times; odd-value pricing, such as selling something for $9.99 rather
than $10, selling products at a loss for the sake of attracting new
customers, selling a unique product or service at a high price and
starting a new product off at a lower price, increasing it as the product
gains in popularity.
86
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 3: Create products or services based on
market analysis and within budgetary constraints
Work Projects
It is a requirement of this Unit that you complete Work Projects as advised by your
Trainer. You must submit documentation, suitable evidence or other relevant proof of
completion of the project to your Trainer by the agreed date.
3.1 To fulfil the requirements of this Work Project you are asked to identify five food or
beverage trends and how they can be incorporated into a restaurant environment.
3.2 To fulfil the requirements of this Work Project you are asked to explain some
considerations or restraints that may apply when implementing your new products or
services.
3.3 To fulfil the requirements of this Work Project you are asked to explain how the
introduction of your new products and services can be profitable.
© ASEAN 2013
Trainee Manual
Develop new products and services
87
Element 3: Create products or services based on
market analysis and within budgetary constraints
Summary
Create products or services based on market analysis and within budgetary
constraints
Incorporate relevant market trends into food service and menu planning

Types of menus

Types of service

Menu constraints

Modern day menu layouts

Menu balance

Final menu considerations.
Develop products and services to take account of market trends

Understanding trends

Examples of global food and beverage trends.
Develop products and services to take account of enterprise operational constraints or
limitations

Organisational requirements

Involve stakeholders

Capabilities and resources

Notification of new products and services

Communicate information about new products and services

Develop organisational policy, procedures and standards

Effective communication of expectations

Creating operational checklists.
Construct products and services to meet profitability targets

Initial costs

Establishing budgets

Deciding on prices for new products or services

Pricing considerations.
88
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 4: Monitor sales performance of products and services
Element 4:
Monitor sales performance of
products and services
4.1 Evaluate new products and/or services in
consultation with stakeholders
Introduction
After new products and services have been implemented, a formal evaluation needs to
analyse and assess the above information to determine operational effectiveness.
Questions that arise can include:

Did it work?

What aspects worked and what didn’t?

Did it deliver value for money?

Were sufficient contacts or sales made?

Did it come in on budget?

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?
Evaluate new products and services to ensure that it meets
targets
All new products and services must be evaluated to ensure it meets
the requirements for the targets and more importantly target
customers.
Such evaluation helps to make sure the efforts stays on track and
forces suggestions to be based in reality.
Analysing the effectiveness of products and services provided to
customers is important at any stage of its lifecycle, but is essential
when it is first introduced into the market.
Any aspect of the introduction of new products and services can be
monitored and evaluated with a view to improvement.
© ASEAN 2013
Trainee Manual
Develop new products and services
89
Element 4: Monitor sales performance of products and services
Areas to evaluate
These can include:

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 – that is whether they are under-worked or over-worked at
different times

The time it takes to do a task or job

Job design – that is whether jobs are challenging or interesting enough for staff

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.
Getting feedback from stakeholders
Feedback is also an effective way to determine whether or not new products or services
have been successfully implemented.
Feedback should be sought throughout the life of products and services, but more
importantly as they are implemented into the marketplace, as it an important element in
making decisions and determining the success of new products and services, either as a
whole or as individual components.
Feedback should be sought from all relevant stakeholders, not just the end consumer.
This is important given that most stakeholders represent a cross section of the
organisation.
Everyone will be able to contribute constructive and useful information in relation to what
has gone right, what needs to be improved or changed and suggestions on how to do so.
The composition of relevant stakeholders will vary depending on the nature of what has
been introduced into the organisation.
Potential stakeholders may include:

Owners of the business – who can share their vision and expectations as well as their
intention for the direction of the business

Site/property managers – including head office, as appropriate who will be able to
contribute information relating to compliance with relevant policies as well as being
able to assist with information about future direction of the business, financial and
other limitations

Supervisors – who will be able to contribute their thoughts on how successful the
implementation has been, what is needed, how it will impact on operations and other
practical matters
90
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 4: Monitor sales performance of products and services

Staff, teams and workgroups who can provide detailed input on how the
implementation has rolled out, comments from customers, suggestions for operational
improvement and input on what they believe needs to take place to improve
workplace implementation of the new products or services

Customers who should be asked their thoughts about the product or service being
implemented

Government agencies. Where compliance issues are involved, they can clearly
explain what legislated obligations apply and provide advice as to how those
obligations can be met.
Methods to gather feedback
Getting feedback from internal management and staff
Staff must be actively encouraged to provide input. After all it is staff who are delivering
the service or product and they are best placed to capture feedback from those who
receive the service.
Not including staff in this feedback process is a very dangerous thing to do. Not only do
you risk missing out on vital information they have obtained from customers but you also
send a message to staff that their input and opinions are not valued or valid.
Excluding staff at this stage also makes it a lot more difficult to build commitment to any
service delivery changes or initiatives which need to be implemented.
Involving staff in this feedback process could include:

Encouraging staff to feed back all relevant comments from customers. Most people
won’t make a formal complaint (that is, in writing, or a verbal complaint to
management) but will often make deliberate and pointed comments in front of staff.
These must be reported back as they are central to improving service delivery. These
comments are market research ‘gold’. You should recognise excellent examples of
feedback

Not shooting the messenger. If staff are to be encouraged to feed back negative
criticism from customers, it is very important not to criticise them simply for delivering
the bad news. Obtaining their feedback must not involve allocating blame or guilt

Setting agenda items for staff meetings which include ‘customer service’. Every staff
meeting should have a standing agenda item for ‘quality feedback’ in relation to
service delivery so staff become familiar with the process and are used to doing it

Developing appropriate documentation. The establishment should have documents for
staff to complete in writing if they don’t feel comfortable with delivering verbal
feedback

Conduct regular meetings

Conduct specific feedback sessions where the total
intention of the meeting is to source, debate and record
feedback

Get staff to provide scheduled feedback when problems
occur

Gather thoughts during debriefing sessions at the
conclusion of shifts.
© ASEAN 2013
Trainee Manual
Develop new products and services
91
Element 4: Monitor sales performance of products and services
Getting feedback from customers
An important step in monitoring and adjusting products and services is to seek feedback
from customers on an ongoing basis, and to use this to improve establishment
performance where applicable.
There are several ways to seek feedback:

From guest comment cards. These are traditionally left in guest rooms, but there is no
reason the same principle can’t be used in just about any other area of the premises

It is also acceptable to offer these cards to guests and customers and ask them to
complete them and return them

The key in using these cards is to make sure they are collected, collated, analysed
and the findings are acted on

Use an online option. This can include a ‘Tell us what you think’ facility or some other
‘Customer Comment/Feedback’ option

Where this is used it is important that someone checks this on a regular basis and
responds to the complaint/feedback etc. Simply using an automatic response
message is not enough

Observing customers – watching their body language or what items they select

Direct communication from customer/guest to staff. This includes complaints,
suggestions, and compliments offered by guests

In some accommodation venues the manager is
present at peak check-out times to farewell guests,
wish them well, thank them for their custom and
actively solicit feedback about guest thoughts on
their stay

Requiring front-line customer/guest contact staff to
inquire about the customer experience. This entails
being proactive in ascertaining how they enjoyed
their meal or stay

Staff should also be required to feedback any comments they have overheard as
distinct from those comments made directly to them.
This approach must also determine which aspects were good and which were bad. Many
people can’t be bothered filling out a questionnaire, but are quite happy to spend a couple
of minutes responding to verbal questions.
Take feedback seriously
Regardless of who provides the feedback it must be taken seriously.
In brief, feedback must be:

Asked for

Respected, acknowledged and encouraged

Allowed to happen

Recorded

Taken into account in future deliberations and planning.
92
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 4: Monitor sales performance of products and services
4.2 Analyse products and services in terms of
business objectives
Introduction
As mentioned in the last section, the use of feedback from all
stakeholders is essential in getting valuable information from all
persons involved in the planning, delivery and consumption of
new products and services.
This is very useful in being able to find out ways to improve the
process.
This section explores analysis of product and service
performance against the business objectives the introduction of
new products and services were trying to achieve.
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.
Each organisation and their departments will have different performance objectives which
reflect the operations and aims.
Business objectives may be related to:

Quantity – this is focused on numbers and may include number of rooms sold, meals
served, revenue earned or customers served. It needs to remember it does not take
into account the quality of service

Quality – it focuses on the end product including
efficiency and percentage of satisfied customers

Time – this focuses on how quickly things can be
done including how long it takes to deliver a meal,
clean a room, check in a guest

Sales figures – this may be in monetary figures or in
terms of percentage

Profitability - this focuses on the level of revenue, control of costs and amount or
percentage of profits made

Customer satisfaction – how many customers were satisfied in relation to level of
complaints

Service standards – the ability of products or services to achieve a required standard.
© ASEAN 2013
Trainee Manual
Develop new products and services
93
Element 4: Monitor sales performance of products and services
Monitoring and evaluating implementation success of new
products and services
When analysing the success of new products and services into the market, there are a
number of steps that can be beneficial to follow.
Work out what needs to be monitored
Not everything can or should be monitored and analysed all the time.
Generally, things to be monitored include:

Areas showing early warning signs that things are not going according to plan

Areas of critical activity to the organisation – high revenue raising streams, areas
subject to loss

To intense legal scrutiny.
Decide on methods or measures to use
This is where you decide how to evaluate the success of product or service
implementation.
The methods chosen for monitoring and evaluating the success of new products and
services are generally built into the planning process.
It is a good idea when planning to keep in mind the reporting on the success or otherwise
of new products and services. It is frustrating to set a goal but not be able to say whether
or not it has been achieved. There are many tools or methods available to monitor
progress or outcomes of work operations. See the toolbox: ‘ITXMGT001A Monitor work
operations’.
Some examples are:

Reports – statistical, financial, written or verbal

Obtaining customer feedback – verbal or written, individual or
focus groups, structured or unstructured in format, surveys

Using a pretend customer – getting someone to pretend to be a
customer in your premises and then critically feeding back what
it was like, what could be improved etc.

Observation - walking about the premises and observing what takes place and what
and how it could be improved

Use of checklists to tick off whether or not required service points
are being adhered to by front line staff when they interact with
customers

Brainstorming sessions where staff are asked to contribute any
thoughts or ideas they may have about improving a particular
aspect of service, or about introducing a new initiative

Staff input and review – obtaining ‘grass roots’ input to potential
and actual problems, and asking those directly concerned about
how the situation can be resolved.
94
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 4: Monitor sales performance of products and services
Compare what is happening with what should be happening
Here you review and analyse what’s actually happening.
You may refer back to your original goals, objectives or
targets and, using various tools, compare your progress
against these targets.
Sometimes you will realise your original target was
unrealistic or there have been changes that require you to
adjust your original target.
Take appropriate action
This involves making the necessary adjustments to the actual products and services
themselves to improve the level of service, productivity or customer satisfaction.
Depending on what is being monitored, involving staff in all or some stages of the
monitoring process is likely to achieve better results.
The types of action that can be taken will be explained in more detail in Section 4.3.
4.3 Adjust products and services based on
feedback and profitability
Introduction
Naturally it is expected that any new products or services introduced in the market will
have some initial problems or there will be the need to improve what is offered.
This may not be a negative thing. In many cases, if a new product or service is
successful, changes will need to be made to ensure increased demand is met.
This section will explore some possible changes, but the range and variety of changes will
depend on the individual circumstances.
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:

Removing the product or service if it is not successful

Reducing or expanding the product or service range

Amending product or service inclusions

Changing or enhancing 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
© ASEAN 2013
Trainee Manual
Develop new products and services
95
Element 4: Monitor sales performance of products and services

Buying new equipment, or more equipment or different
equipment

Making changes to establishment policies and standard
operating procedures (SOPs)

Increasing staff numbers

Changing operating/trading times

Changing layout of the premises/department

Organising more information for customers

Changing prices to meet customer demands whilst still meeting financial expectations.
96
© ASEAN 2013
Trainee Manual
Develop new products and services
Element 4: Monitor sales performance of products and services
Work Projects
It is a requirement of this Unit that you complete Work Projects as advised by your
Trainer. You must submit documentation, suitable evidence or other relevant proof of
completion of the project to your Trainer by the agreed date.
4.1 To fulfil the requirements of this Work Project you are asked to explain how you can
evaluate the success of your new products or services after they have been
implemented into an organisation.
4.2. To fulfil the requirements of this Work Project you are asked to identify three
objectives you would wish to achieve through the introduction of your new products
and services. How can you measure actual performance against these objectives?
4.3. To fulfil the requirements of this Work Project you are asked to identify possible
problems that may arise when implementing your new products and services and
possible actions that can be taken to resolve or minimise these problems.
© ASEAN 2013
Trainee Manual
Develop new products and services
97
Element 4: Monitor sales performance of products and services
Summary
Monitor sales performance of products and services
Evaluate new products and/or services in consultation with stakeholders

Evaluate new products and services to ensure that it meets targets

Getting feedback from stakeholders

Methods to gather feedback

Take feedback seriously.
Analyze products and services in terms of business objectives

Types of business objectives

Monitoring and evaluating implementation success of new products and services.
Adjust products and services based on feedback and profitability

Possible changes to products and services.
98
© ASEAN 2013
Trainee Manual
Develop new products and services
Presentation of written work
Presentation of written work
1. Introduction
It is important for students to present carefully prepared written work. Written presentation
in industry must be professional in appearance and accurate in content. If students
develop good writing skills whilst studying, they are able to easily transfer those skills to
the workplace.
2. Style
Students should write in a style that is simple and concise. Short sentences
and paragraphs are easier to read and understand. It helps to write a plan
and at least one draft of the written work so that the final product will be
well organized. The points presented will then follow a logical sequence
and be relevant. Students should frequently refer to the question asked, to
keep ‘on track’. Teachers recognize and are critical of work that does not
answer the question, or is ‘padded’ with irrelevant material. In summary,
remember to:

Plan ahead

Be clear and concise

Answer the question

Proofread the final draft.
3. Presenting Written Work
Types of written work
Students may be asked to write:

Short and long reports

Essays

Records of interviews

Questionnaires

Business letters

Resumes.
Format
All written work should be presented on A4 paper, single-sided with a left-hand margin. If
work is word-processed, one-and-a-half or double spacing should be used. Handwritten
work must be legible and should also be well spaced to allow for ease of reading. New
paragraphs should not be indented but should be separated by a space. Pages must be
numbered. If headings are also to be numbered, students should use a logical and
sequential system of numbering.
© ASEAN 2013
Trainee Manual
Develop new products and services
99
Presentation of written work
Cover Sheet
All written work should be submitted with a cover sheet stapled to the front that contains:

The student’s name and student number

The name of the class/unit

The due date of the work

The title of the work

The teacher’s name

A signed declaration that the work does not involve plagiarism.
Keeping a Copy
Students must keep a copy of the written work in case it is lost. This rarely happens but it
can be disastrous if a copy has not been kept.
Inclusive language
This means language that includes every section of the population. For instance, if a
student were to write ‘A nurse is responsible for the patients in her care at all times’ it
would be implying that all nurses are female and would be excluding male nurses.
Examples of appropriate language are shown on the right:
Mankind
Humankind
Barman/maid
Bar attendant
Host/hostess
Host
Waiter/waitress
Waiter or waiting staff
100
© ASEAN 2013
Trainee Manual
Develop new products and services
Recommended reading
Recommended reading
Cagan, Marty; 2007 (1st edition); Inspired: How To Create Products Customers Love;
SVPG Press
Cooper, Robert; 2011 (4th edition); Winning at New Products: Creating Value Through
Innovation; Basic Books
Cooper, Robert; 2011 (1st edition); Product Development For The Service Sector:
Lessons From Market Leaders; Basic Books
Cooper, Robert; 2009; Generating Breakthrough New Product Ideas: Feeding the
Innovation Funnel; Product Development Institute Inc.
Karol, Robin; 2007 (1st edition); New Product Development For Dummies; For Dummies
Sanders, Lawrence; 2011; Developing New Products and Services: Learning,
Differentiation and Innovation (Marketing Research Collection); Business Expert Press
Ulwick, Anthony; 2005 (1st edition); What Customers Want: Using Outcome-Driven
Innovation to Create Breakthrough Products and Services; McGraw-Hill
Urnan, Roman; 2010 (1st edition); Voice-of-the-Customer Marketing: A Revolutionary 5Step Process to Create Customers Who Care, Spend, and Stay; McGraw-Hill
© ASEAN 2013
Trainee Manual
Develop new products and services
101
Recommended reading
102
© ASEAN 2013
Trainee Manual
Develop new products and services
Trainee evaluation sheet
Trainee evaluation sheet
Develop new products and services
The following statements are about the competency you have just completed.
Please tick the appropriate box
Agree
Don’t
Know
Do Not
Agree
Does Not
Apply
There was too much in this competency
to cover without rushing.
Most of the competency seemed relevant
to me.
The competency was at the right level for
me.
I got enough help from my trainer.
The amount of activities was sufficient.
The competency allowed me to use my
own initiative.
My training was well-organized.
My trainer had time to answer my
questions.
I understood how I was going to be
assessed.
I was given enough time to practice.
My trainer feedback was useful.
Enough equipment was available and it
worked well.
The activities were too hard for me.
© ASEAN 2013
Trainee Manual
Develop new products and services
103
Trainee evaluation sheet
The best things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The worst things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The things you should change in this unit are:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
104
© ASEAN 2013
Trainee Manual
Develop new products and services