This essay presents the information about the innovative product of Hotel Montreal in Christchurch i.e. Mobile apps for messaging and Remote Control in the room. It also discusses the process of new Product and service development and customer satisfaction strategy. This essay also illustrates the branding, pricing, and revenue management strategy.
Products and services
Hotel Montreal offers room service, newspapers, valet parking, turndown service, and free wi-fi throughout the hotel. It has employed dedicated staffs who always provide lucrative services for their guest. It makes a plan for innovating the products such as Mobile apps for messaging and Remote Control in the room. In the market, a free companion app is available hence Hotel Montreal should provide a mobile app for controlling the room through the remote. It would be effective for guests to turn the TV, browse and order for food. This innovative product will add the benefits for customers (Gutierrez-Gutierrez, Barrales-Molina, and Kaynak, 2018).
The process of new Product and service development
New product development is a procedure of offering a product and services from conception to market. The procedure develops a series of phases that new products usually go through, initiating with ideation and generation of concept and ending with the introduction of the product to the market. There are certain phases that overlap and vary (De Massis, Kotlar, Frattini, Chrisman, and Nordqvist, 2016). It relies on the nature of the business.
Key stages in the process of product or service development
The procedure of new product development i.e. Mobile apps for messaging and Remote Control in the room of Hotel Montreal are as follow:
In this phase, the brainstorming technique is used to generate the idea from different sources. It is beneficial for generating ideas regarding new products and services.
Evaluation of Idea
This is the second phase where, Hotel Montreal will filter out the ideas that are not valuable for the future. In this phase, the company will screen new products and services in the hotel.
Definition of concept
This phase will incorporate specification like product design, market potential, and technical feasibility. Hotel Montreal should research ideas related to new products and services.
Analysis of strategic
This phase makes sure the ideas that fit into the strategic plan of business and also determines the demand, profit margin and costs (Marion, Eddleston, Friar, and Deeds, 2015).
Product development and testing
After assessing the strategic, Hotel Montreal will create a prototype product and pilot services. This hotel should identify the development of concept and testing.
This is the next phase of modifying the products and services as per the manufacturer, customer and support the feedback of an organization. It entails deciding the best timing and procedure for piloting the new products and services. Hotel Montreal should assess the ways to test the market.
Hotel Montreal will determine the pricing strategy for their products and service and finalize the marketing plan during this phase. It will also identify pricing for developing mobile apps for messaging and Remote Control in the room of Hotel Montreal.
This phase is related to launching the product. In this phase, Hotel Montreal will help to make sure the horizontal introduction to market (Wowak, Craighead, Ketchen Jr, and Hult, 2016).
Brand strategy is an initiative that incorporates specific and long-term goals that could be attained with the origination of a successful brand. The integrated element of a company’s quality can make it identifiable. The key branding strategy that could be used by Hotel Montreal is differentiating and positioning their brand. Before building a brand, Hotel Montreal should take time to differentiate it as, it would be beneficial to influence attention and stand out among rivalry. To differentiate the brand, Hotel Montreal should have unique benefits in the mind of customers rather than focusing on the building of brand color and other external elements. After building unique value proposition Hotel Montreal will use good branding strategy in order to position their brand in a way that will aid to identify the customers and appreciate the higher value of brand over competing ones in the marketplace (Du, Yalcinkaya, and Bstieler, 2016).
Furthermore, Hotel Montreal should build and expose the brand for influencing the customers towards their brand. Brand building is an effective strategy for increasing demand of customers. Developing unique and powerful personal and business brand may take more time with consistency. In order to build a personal brand, the company needs to keep reinforcing the values and skills by taking up new assignments and rile that will give more exposure to business. In addition, Hotel Montreal can implement promotional channels, forums, blogs and social media such as Twitter, Facebook, and LinkedIn in order to generate a voice for personal and business brand (Lawson, Krause, and Potter, 2015).
Customer satisfaction that the products and service intends on achieving
Hotel Montreal can address the needs of customers to satisfy them towards the products and services. The procedure of customer satisfaction initiates well before buying is made at the starting contact with the customers. The salesperson should be trained in order to listen cautiously to customers and address what their requirements about products and services (Cruz-González, López-Sáez, and Navas-López, 2015). Furthermore, the salesperson should fully comprehend the needs of customers hence; he would be competent to suggest the products and services that effectively attain the requirements of customers. Satisfied customers are those people who think that they have selected specific products and services after making their own buying decision rather than forcing with the salesperson (Morgan, Anokhin, Kretinin and Frishammar, 2015).
Hotel Montreal can focus on reliable information regarding customer’s need as it would be beneficial to satisfy them. Hotel Montreal can use a distinctive strategy where, it emphasizes on making innovative products as compared to its competitors. It is an effective strategy that enables the customers to get complete and authentic data regarding the advantageous and uses of products that they are considering for buying (Wei, Yi, and Guo, 2014). It can also provide the training to their salespeople about depth knowledge of the product and deals with customers as it would lead the business to meet the needs of customers. Along with this, a business website can be another valuable strategy to provide the higher extent of satisfaction (Hofman, Faems, and Schleimer, 2017).
Hotel Montreal can develop post-purchase liaison with their customers. When a customer is not inclusively satisfied and raises a complaint via phone call or email then, this does not indicate declining customer’s demand. In such case, Hotel Montreal can implement handling complaints and problems in an effective and diplomatic way that can alter the unfavorable circumstances into favorable and influences the customer towards their corporation. Hotel Montreal can contact the customers and ask them how they are satisfied and ask to share the experience they had regarding the corporation. It can also ask what could be performed to effectively serve these customers in the future (Muethel, and Hoegl, 2016). Hotel Montreal can make primary business objectives related to customer satisfaction and asking customers for showing input that a business truly cares regarding them and is always striving for enhancement. Furthermore, customers can respond well to get thank-you cards and announcements of email regarding new products and services a business will offer and that might interested in them. In addition, the company should understand the individual’s need in order to provide the higher extent of satisfaction (Hakansson, 2015).
The pricing strategy of innovative product
Hotel Montreal can use penetration strategy for their innovative products. It is an effective marketing strategy that aids to influence the customers towards new products and services. Penetration pricing involves the demonstration of the low rate for new products and services at the time of initial offering. The lower rate aids to influence the customer away from its key market participants (Schemmann, Herrmann, Chappin, and Heimeriks, 2016). This marketing strategy depends on the ideas related to low rates and creating awareness among customers regarding new products. The price endorses the customers for making efforts to try the new products. Hotel Montreal can use penetration pricing only when it needs to use low rate in order to pull the attention of high amount of customers and beat the competition (Zhao, Cavusgil, and Cavusgil, 2014). The company can get success while selected products and services are mass produced because the cost per unit will be lower for it. Hotel Montreal should be competent to absorb the losses incurred due to slash prices and ensures that business has adequate reserve funds in order to maintain the business afloat (Chen, Neubaum, Reilly, and Lynn, 2015).
Revenue Management is the art and science of increasing the revenue under the condition of the variable. It is a management technique that has the aim to boost the sales revenues by manipulating the rates at the fixed products such as hotel rooms are made presented for sale with respect to existed and projected demand. Hotel Montreal can use different strategies for managing their revenue such as comprehending dynamic pricing tool according to seasonal demands, combining PMS with distribution channels and GDS booking, assessing booking and information, and tracking the rivalry (Chuang, Morgan, and Robson, 2015).
From the above discussion, it can be concluded that Hotel Montreal makes a plan to innovate the product such as a mobile app for controlling the rooms via remote. It can be also summarized that Hotel Montreal will use certain key stages in the process of product or service development. These are Idea generation, Evaluation of Idea, Evaluation of Idea, Analysis of strategic, Product development and testing, Market testing, Commercialization, and Product Launch. It can be evaluated that Hotel Montreal can use to differentiate the product development strategy and understand the needs of customers to promote their brand.
It can be also concluded that Hotel Montreal will use a different strategy to satisfy the customers towards their products and services such as training to salesperson and sourcing the reliable information. It can be concluded that Hotel Montreal will use penetration pricing strategy to launch their innovative product. It can be evaluated that Hotel Montreal can use different strategies for managing their revenue such as seasonal demands, combining PMS with distribution channels and GDS booking.
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