(Tiểu luận) topic the new product development mien man music show – moc mienhomestay

NATIONAL ECONOMICS UNIVERSITY CENTER FOR ADVANCED EDUCATIONAL PROGRAMS GROUP ASSIGNMENT SUBJECT: MARKETING FOR HOSPITALITY AND TOURISM TOPIC: THE NEW PRODUCT DEVELOPMENT “MIEN MAN MUSIC SHOW – MOC MIEN HOMESTAY” Group of students Subject Class : Mien Man Music Show : Marketing for Hospitality and Tourism : POHE – Hospitality Management Lecture intake 62 : Dr Hoang Thi Thu Huong Hanoi – 2023 GROUP MEMBERS No Full name Student’s ID Chu Thị Bằng An 11204203 Nguyễn Lâm Anh 11200219 Ngô Vân Khánh 11205596 Nguyễn Trà My 11206204 Phùng Thị Hồng Nhung 11203053 Tạ Khắc Phong 11203105 Nguyễn Thị Thuỳ 11203891 TABLE OF CONTENT Note LIST OF FIGURES .4 PART I: THE NEW PRODUCT DEVELOPMENT 1.1 Idea Generation 1.2 Idea Screening 1.3 Concept Development and Testing .2 1.4 Marketing Strategy .2 1.5 Business Analysis .3 1.6 Product Development 1.7 Test Marketing 1.8 Commercialization .3 PART II: OVERVIEW OF THE NEW PRODUCT 2.1 Moc Mien Homestay 2.2 Mien Man Music Show 2.3 Market Segmentation and Market Targeting .4 PART III: MARKETING STRATEGY AND MIX 3.1 Product .8 3.2 Price 12 3.3 Place 16 3.4 Promotion 20 3.5 People .24 REFERENCES 27 LIST OF FIGURES Figure 2.1 Survey-takers’ age Figure 2.2 Survey-takers’ income Figure 2.3 Survey-takers’ means of enjoying music Figure 2.4 Survey-takers’ favorite music types Figure 3.1 Food and drink menu for Mien Man Music Show Figure 3.2 The seating chart of Mien Man Music Show 12 Table 4.1 Estimated costs of each Mien Man Music Show .15 Table 4.2 Price of each type of seat 16 Figure 3.3 Survey results about “Where to get information” 17 Figure 3.4 Survey results about “Ticket purchase” 18 Figure 3.5 Ticketbox 19 Figure 3.6 VinID 19 Figure 3.7 Distribution channels chart 20 Figure 3.8 promotion tools and its example 21 Figure 3.9 Promotion tools in Marketing Strategy of Mien Man Music Show 22 PART I: THE NEW PRODUCT DEVELOPMENT To create successful new products, a company must understand its consumers, markets, and competitors and develop products that deliver superior value to customers It must carry out strong new-product planning and set up a systematic, customer-driven new-product development process for finding and growing new products There are major stages in this process: 1.1 Idea Generation New-product development starts with idea generation—the systematic search for new-product ideas Major sources of new-product ideas include internal sources and external sources such as customers, competitors, and distributors and suppliers 1.2 Idea Screening The purpose of idea generation is to create a large number of ideas The purpose of screening is to spot good ideas and drop poor ones as quickly as possible Product development costs rise greatly in later stages, so the company wants to proceed only with ideas that will turn into profitable products 1.3 Concept Development and Testing Surviving ideas must now be developed into product concepts It is important to distinguish between a product idea, a product concept, and a product image A product idea envisions a possible product that company managers might offer to the market A product concept is a detailed version of the idea stated in meaningful consumer terms A product image is the way that consumers picture an actual or potential product 1.4 Marketing Strategy The next step is marketing strategy development: designing an initial marketing strategy for introducing the product into the market The marketing strategy statement consists of three parts: The first part describes the target market, the planned product positioning, and the sales, market share, and profit goals for the first few years The second part of the marketing strategy statement outlines the product’s planned price, distribution, and marketing budget for the first year The third part of the marketing strategy statement describes the planned longrun sales, profit goals, and marketing mix strategy 1.5 Business Analysis Once management decides on the product concept and marketing strategy, it can evaluate the business attractiveness of the proposal Business analysis involves a review of the sales, costs, and profit projections to determine whether they satisfy the company’s objectives If they do, the product can move to the product development stage 1.6 Product Development If the product concept passes the business test, it moves into product development and into a prototype 1.7 Test Marketing If the product passes functional and consumer tests, the next step is market testing in which the product and marketing program are introduced into realistic market settings 1.8 Commercialization Market testing gives management the information it needs to make a final decision about whether to launch a new product When?: The first decision is whether it is the right time to introduce the new product Where?: The company must decide whether to launch the new product in a single location, a region, several regions, the national market, or the international market To whom?: Within the rollout markets, the company must target its promotion to the best prospect groups Management should have determined profiles of prime prospects during earlier market testing It must now fine-tune its market identification, looking for early adopters, heavy users, and opinion leaders How?: The company must develop an action plan for introducing the new product into the selected markets and spend the marketing budget on the marketing mix Document continues below Discover more from: Principles of Marketing Đại học Kinh tế… 279 documents Go to course Trắc nghiệm 48 Marketing Principles of… 100% (5) Report MKT group 12 - This is our… Principles of… 89% (19) De cuong Marketing can ban Principles of… 100% (3) 10210769 MPP A2 34 Assignment MPP … Principles of… 100% (3) BÁO-CÁO-KINH64 Doanh-QT-… Principles of… Chapter PART II: OVERVIEW OF THE NEW PRODUCT 2.1 Moc Mien Homestay 88% (8) Promotion Principles of…in Moc Chau, Moc Mien Homestay is a hospitality service business located 100% (2) Vietnam Moc Mien offers its visitors a relaxing and comfortable atmosphere, built with an architecture that is completely sympathetic to nature Each moment at our houseguests' stay brings new life into the air Other entertainment services, in particular our weekly event: Mien Man's Music Show, are also available to Moc Mien alongside the basic lodging and catering service 2.2 Mien Man Music Show In order to differentiate ourselves from our competitors, we have decided to allocate some of our funds for the development of entertainment services and products When we first thought of entertainment, social interaction was a top priority, but what better way to interact with people than through music? It's why a music show called Mien Man was created However, Moc Mien Homestay will not succeed in delivering excellent products of Mien Man Music Show without our target customers’ opinions and suggestions 2.3 Market Segmentation and Market Targeting 2.3.1 Market Segmentation Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics By understanding the different segments within a market, we have decided to divide our customers into groups using these methods: Demographic Segmentation: It divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation With this segmentation method, we will be able to choose our target customer based on income and age Psychographic Segmentation: It divides buyers into different segments based on social class, lifestyle, or personality characteristics This segmentation method allows us to choose our target customer based on class, travel style, and entertainment interest Behavioral Segmentation: In behavioral segmentation, buyers are divided into groups based on their knowledge, attitude, and use or response to a product This segmentation method helps us in choosing our customers based on their perception of music, and their music interest 2.3.2 Market Targeting After researching market segmentations and conducting surveys, we have selected the target market for the music show: Age: The survey has 100 responses from people of different ages As we can see, people who respond to the survey are divided into age groups It is clear that the number of survey-takers is mostly from the 18 to 25 age group, accounting for 82% This is also the target customers of our homestay for this music show, who are young adults Figure 2.1 Survey-takers’ age (Source: Surveyed data) Income: When surveyed about the personal income, there are levels, which are: below million VND/month, from million to million VND, from million to 10 million VND, from 10 million to 20 million VND and above 20 million VND Figure 2.2 Survey-takers’ income (Source: Surveyed data) The proportion of people who gain 2-5 million VND/month is 17%, followed by a proportion of groups having less than million VND/month From 10 to 20 million VND takes 30%, 12% higher compared to the group having from million to 10 million VND/month The last group only takes 25% It can be seen that the music show's customers are people with moderate to high income From there, we can come up with a reasonable ticket price Interest in music: In this section, we surveyed about favorite means of enjoying music and favorite music types According to our recent survey, whose attendants come from Hanoi, most people surveyed assume that the price ranges from 250,000 VND to 350,000 VND is the most reasonable price for a music show However, 350,000 VND to 500.000 VND is still an acceptable price Therefore, we will take care of them through adding a cross-selling strategy Competition: Today, in Moc Chau, cafes have begun to appear with music nights on weekends or on some special occasions such as Oach Coffee & Pub, Moc Chau Acoustic Cafe, Green Garden Tea & Coffee Cross-Selling: The homestay’s room can cross-sell the show tickets Every customer who uses the accommodation service will receive a special price for the common seat - 359,000 VND 3.2.2 General Pricing Approach As we mentioned above, the average cost for one music show per week is roughly estimated Cost-based Approach has been chosen No Segment Detail Unit Amount Unit price Total Note DECORATION Setting up the stage Sound, light (loudspeakers, lights, cable accessorie, smoke generator, lighting technique people) 20,000,000 20,000,000 Average one show Stage 2,000,000 2,000,000 1,500,000 1,500,000 15 150,000 2,250,000 LED Screen Backdrop m2 13 Banquet chairs Piece 250 ~15,000 3,750,000 500,000 500,000 2,000,000 2,000,000 10 80,000 800,000 ~8,000,000 8,000,000 Print Balloon Set Hand-held hashtags Setting up the welcome gate Welcome gate Set 40,800,000 TOTAL: HUMAN RESOURCE Human Resources Ekip, servers Person 15 500,000 7,500,000 Guest Singer Person 30,000,000 30,000,000 37,500,000 TOTAL: MARKETING Running ads Facebook (CPM) 1000 impressions ~165,370 330,740 Instagram click ~16,100 161,000 100 14 Standee Formex gate (CPC) Tiktok (CPM) 1000 impressions ~230,000 460,000 Twitter (CPM) 1000 impressions ~180,000 360,000 Newspapers News ~500,000 1,0000,000 KOLs Person 2,000,000 2,000,000 Seeding 1,500,000 1,500,000 TOTAL: 5,811,740 TOTAL COST: 84,111,740 Table 4.1 Estimated costs of each Mien Man Music Show 3.2.3 New product pricing strategies Our strategy is Market-penetration pricing as set a low initial price to penetrate the market quickly and deeply, attracting many buyers and winning a large market share And this is the price list: Mo Mang Numbers of seats Price Perks 30 1,000,000 VND Assigned server, Free drinks 15 Menh Mong 70 750,000 VND Discount on drinks Me Man 100 450,000 VND Cross sell with accommodation Table 4.2 Price of each type of seat 3.2.4 Revenue management The goal is for 50% of Mo Mang tickets to be purchased by accommodated guests, and all tickets to be sold out Expected Revenue = 1,000,000*30 + 750,000*70 + 450,000*50 + 359,000*50 = 122,950,000 (VND) Profit might be: Expected Revenue – Estimated Cost = 122,950,000 – 84,000,000 = 38,950,000 (VND) The expected profit accounts for about 32% per show, which is an ideal profit rate 3.3 Place “Place” factors refer to distribution channels, which are sets of independent organizations involved in the process of making a product or service available to the customer or business user In the hospitality and travel industries, distribution systems are used to move the customer to the product In this study, two main distribution methods are mentioned: direct distribution and indirect distribution 3.3.1 Direct distribution With direct distribution methods, Moc Mien Homestay delivers products directly to the consumer According to the survey results (Figure 3.3), 45% of respo ndents agreed with the way of getting information through social networks such as Facebook, Instagram, Twitter… Therefore, creating social networks to distribute products directly should be a top priority Being one of the largest social networks, Facebook is frequently accessed by Vietnamese, as well as foreigners who come to Vietnam Moc Mien Homestay decided to choose Facebook as a platform to deliver products to the customer Customers can connect with Moc 16