THE NEW PRODUCT DEVELOPMENT
Idea Generation
New-product development begins with idea generation, which involves a systematic search for innovative concepts Key sources for these new-product ideas include internal resources and external inputs from customers, competitors, distributors, and suppliers.
Idea Screening
Idea generation aims to produce a vast array of concepts, while screening focuses on identifying and eliminating weak ideas swiftly Since product development expenses significantly increase in later phases, companies strive to advance only those ideas that have the potential to become profitable products.
Concept Development and Testing
To successfully transform surviving ideas into market-ready offerings, it is crucial to differentiate between a product idea, product concept, and product image A product idea represents a potential offering envisioned by company managers, while a product concept elaborates on this idea in consumer-friendly terms, providing clarity and detail Finally, a product image reflects how consumers perceive an actual or potential product, influencing their purchasing decisions.
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 long- run sales, profit goals, and marketing mix strategy.
Business Analysis
After establishing the product concept and marketing strategy, management assesses the business viability of the proposal This business analysis includes evaluating sales, costs, and profit forecasts to ensure alignment with the company's goals If the projections meet these objectives, the product advances to the development stage.
Product Development
If the product concept passes the business test, it moves into product development and into a prototype.
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.
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 effectively promote its offerings in rollout markets, the company should focus on identifying and targeting key prospect groups, including early adopters, heavy users, and opinion leaders Management is expected to refine its market identification based on previously established profiles of prime prospects from earlier market testing.
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.
Marketing Đại học Kinh tế…
De cuong Marketing can ban
BÁO-CÁO-KINH- Doanh-QT-…
OVERVIEW OF THE NEW PRODUCT
Moc Mien Homestay
Moc Mien Homestay is a hospitality service business located in Moc Chau,
Moc Mien in Vietnam provides visitors with a tranquil and comfortable environment, featuring architecture that harmonizes with nature Each moment spent at our establishment revitalizes the spirit, while additional entertainment options, including our weekly Mien Man's Music Show, enhance the overall experience at Moc Mien.
Mien alongside the basic lodging and catering service.
Mien Man Music Show
To stand out from competitors, we are investing in the development of entertainment services and products, with a focus on social interaction through music This led to the creation of our music show, Mien Man However, the success of the Mien Man Music Show at Moc Mien Homestay hinges on incorporating feedback and suggestions from our target customers.
Market Segmentation and Market Targeting
Market segmentation involves breaking down a market into smaller groups of consumers who share similar needs or characteristics By analyzing these distinct segments, we can effectively categorize our customers into targeted groups using various methods.
Demographic segmentation is a marketing strategy that divides the market into distinct segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation By utilizing this approach, businesses can effectively identify and target their ideal customer based on key demographics like income and age This targeted approach enables companies to tailor their products and services to meet the specific needs of their chosen demographic, ultimately driving business growth and customer satisfaction.
Psychographic segmentation categorizes consumers into distinct groups based on their social class, lifestyle, and personality traits This approach enables businesses to identify and target specific customer segments by considering factors such as class, travel preferences, and entertainment interests.
Behavioral Segmentation : In behavioral segmentation, buyers are divided into groups based on their knowledge, attitude, and use or response to a product This
4 segmentation method helps us in choosing our customers based on their perception of music, and their music interest.
After researching market segmentations and conducting surveys, we have selected the target market for the music show:
The survey gathered 100 responses from diverse age groups, revealing that 82% of participants belong to the 18 to 25 age range This demographic represents our primary target audience for the homestay associated with the music show, highlighting a strong interest among young adults.
When surveyed about the personal income, there are 5 levels, which are: below 2 million VND/month, from 2 million to 5 million VND, from 5 million to
10 million VND, from 10 million to 20 million VND and above 20 million VND
Seventeen percent of individuals earn between 2-5 million VND per month, while a smaller group earns less than 2 million VND Thirty percent of people fall within the 10 to 20 million VND income range, which is 12% higher than the 5 to 10 million VND group, comprising only 25% of the total This data indicates that the audience for music shows primarily consists of individuals with moderate to high incomes, suggesting the potential for establishing an appropriate ticket pricing strategy.
In this section, we surveyed about favorite means of enjoying music and favorite music types
Figure 2.3 Survey-takers’ means of enjoying music
A significant 95% of respondents prefer mobile applications such as Spotify, YouTube Premium, and SoundCloud for enjoying music Additionally, music shows and tea rooms are favored by 32% and 28% of participants, respectively These statistics highlight the potential for successfully organizing music shows at our homestay, catering to the diverse preferences of music enthusiasts.
Figure 2.4 Survey-takers’ favorite music types
Most of the customers liked to listen to Pop and Ballad 64% enjoyed Pop while 60% enjoyed Ballad Therefore, we will focus on these two music genres.
MARKETING STRATEGY AND MIX
Product
The most basic level is the core product, which answers the following question: What the buyer is really buying?
At Mien Man music shows, we prioritize core values that resonate with customers seeking a sense of levitation and romance, evoking feelings of nostalgia while fostering close interactions with celebrities.
Music resonates with our emotions, allowing us to feel rather than just perceive People are drawn to songs not only for their melodies and lyrics but also for the emotions they evoke and the environments in which they are experienced In Moc Chau, with its mild climate and breathtaking mountain views, life feels tranquil, contrasting sharply with the chaos of urban life Here, listeners can connect deeply with songs that recount familiar life stories, often forgotten Even remixed old songs preserve their original narratives, blending nostalgia with contemporary rhythms to evoke both past and present feelings.
Mien Man music shows offer customers a profound sense of tranquility, allowing them to connect with the deepest parts of their soul This unique experience is the primary value that organizers aim to provide, something that no technological device or physical location can replicate.
Facilitating products are services or goods that must be present for the guest to use the core product
This music show offers a diverse range of musical genres, including pop, rock, jazz, indie, and international and ethnic music, featuring performances by singers of all ages To elevate the experience, the organizers provide catering services, complete with a selection of refreshing drinks and delectable cakes, creating an atmosphere of excitement and energetic cheering for all attendees.
Figure 3.1 Food and drink menu for Mien Man Music Show
Core products rely on facilitating products for functionality but do not necessitate supporting products Supporting products are additional offerings designed to enhance the value of the core product and distinguish it from competitors.
During a special week, local artists will showcase ethnic music to promote and preserve cultural identity Moc Mien provides a dedicated team available 24/7 through their call center and communication platforms to promptly address customer inquiries Additionally, the organizers present a range of promotional programs for guests, detailed in the Promotions section.
Moc Chau district offers a convenient parking lot for motorbike users attending music shows, as many out-of-town visitors typically arrive by bus or limousine Once in Moc Chau, they often rent motorbikes from local providers to explore the area easily.
Those supporting products will create more value for the core product, which helps to exceed the guest’s satisfaction.
Moc Chau's entertainment venues are widely spaced, and the mountainous terrain presents challenges for young people trying to attend music shows independently.
To enhance customer experience, organizers offer a complimentary shuttle service, requiring only personal information during booking The atmosphere plays a vital role in service quality, as it is perceived through the senses Descriptive sensory terms help convey the atmosphere, which encompasses visual elements, auditory cues, scents, and tactile sensations.
At our homestay, customer interactions enhance the overall experience, making them an integral part of the service we offer Prior to the show, we invite guests to engage in a fun social activity where they can perform their favorite songs on stage Interested customers can register their song choice with our staff between 6:00 PM and 7:30 PM, creating a vibrant and interactive atmosphere.
The Mien Man music show, hosted by Moc Mien Homestay in Moc Chau Farm Town, offers a unique outdoor entertainment experience Set in a beautiful garden, the show provides guests with a spacious and relaxing atmosphere, allowing them to immerse themselves in the stunning scenery of Moc Chau, characterized by picturesque clouds and warm sunshine over lush hills and green valleys.
Join us for an exciting music show from 8:00 PM to 10:00 PM, and arrive 15 minutes early to secure your seats Before the show, enjoy a unique opportunity to showcase your talent by performing your favorite songs on our stage Simply register your song choice with our homestay staff between 6:00 PM and 7:30 PM.
At Moc Mien, we offer unique experiences through our Mien Man music shows, featuring a diverse range of musical genres such as pop, rock, jazz, indie, and international and ethnic music With four shows per month, our performances showcase talented singers from various generations, including familiar faces from the 7X, 8X, 9X, and even 10X eras Each performance presents a fresh remix of beloved songs while preserving their original stories, delivered in a gentle manner Notably, each show features only one or two singers, culminating in a special week dedicated to folk music performed by local artists during the last week of each month.
The stage at Mien Man in Moc Chau is thoughtfully designed for coziness, combining a warm musical atmosphere with a layout that encourages closeness among attendees Constructed from durable plastic and featuring secure oak flooring, the stage prioritizes safety for both users and visitors Rows of wooden chairs, adorned with show-themed decorations, are organized according to Moc Chau’s aesthetic, with the VIP row, Mo Mang, closest to the stage, followed by Menh Mong and the more general seating, Me Man This strategic seating arrangement enhances the overall experience for patrons.
Figure 3.2 The seating chart of Mien Man Music Show
Price
Current profit maximization: In addition to room income, our homestay aims to increase revenue and profitability.
To achieve market-share leadership, our goal is to secure a dominant position that allows us to benefit from low costs and high long-term profits Moc Mien Homestay aims to be the pioneering accommodation provider by hosting unique music nights for our guests, enhancing their overall experience and setting us apart in the market.
Variable cost: Guest singer, Marketing…
Nature of the market and demand :
Because all the invited artists will be the ones favored by teenagers, performing trending songs or remade old songs, the age of customers we target are
A recent survey conducted in Hanoi reveals that the majority of respondents consider a price range of 250,000 VND to 350,000 VND to be the most reasonable for a music show, while prices between 350,000 VND and 500,000 VND are also deemed acceptable To enhance customer satisfaction and maximize revenue, we plan to implement a cross-selling strategy tailored to these price preferences.
In Moc Chau, the café scene is thriving, featuring venues like Oach Coffee & Pub, Moc Chau Acoustic Cafe, and Green Garden Tea & Coffee, which host lively music nights on weekends and special occasions.
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.
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
(loudspeakers, lights, cable accessorie, smoke generator, lighting technique people)
2 Setting up the welcome gate
Welcome gate Set 1 ~8,000,000 8,000,000 Formex gate
Table 4.1 Estimated costs of each Mien Man Music Show
Our strategy focuses on market-penetration pricing, which involves setting a low initial price to quickly and deeply enter the market This approach aims to attract a significant number of buyers and capture a large market share Below is the price list:
Numbers of seats Price Perks
Mo Mang 30 1,000,000 VND Assigned server, Free drinks
Me Man 100 450,000 VND Cross sell with accommodation
Table 4.2 Price of each type of seat
The goal is for 50% of Mo Mang tickets to be purchased by accommodated guests, and all tickets to be sold out.
Profit might be : Expected Revenue – Estimated Cost = 122,950,000 –
The expected profit accounts for about 32% per show, which is an ideal profit rate.
Place
"Place" factors encompass the distribution channels that consist of independent organizations facilitating the availability of products or services to customers or business users In the hospitality and travel sectors, these distribution systems play a crucial role in connecting customers with products This study highlights two primary distribution methods: direct distribution and indirect distribution.
With direct distribution methods, Moc Mien Homestay delivers products directly to the consumer
A recent survey revealed that 45% of respondents prefer obtaining information through social networks like Facebook, Instagram, and Twitter, highlighting the importance of utilizing these platforms for product distribution Given its popularity among both Vietnamese users and international visitors, Moc Mien Homestay has chosen Facebook as its primary channel for reaching customers, allowing for effective engagement and connection with potential guests.
Mien Homestay on Facebook Fanpage to ask about Mien Man Music Show and book tickets in advance.
In addition to social networks, 33% of survey participants indicated a preference for obtaining information via travel websites As a result, Moc Mien Homestay has chosen to develop a high-quality website that serves as an online platform for showcasing its offerings, enabling customers to easily access information and make bookings.
Moreover, customers can still contact homestay's hotline for on-time advice or booking Mien Man Music Show tickets.
Figure 3.3 Survey results about “Where to get information”
A recent survey indicates that most customers prefer to buy tickets online rather than offline In response to this trend, Moc Mien Homestay facilitates online ticket purchases for the Mien Man Music Show Customers can conveniently book their tickets through the homestay's fan page, website, or hotline, and complete their transactions using internet banking.
Nevertheless, 20% of respondents agreed to purchase tickets offline To offer customers as many choices as possible, Moc Mien Homestay also provides offline tickets at the homestay’s lobby.
Figure 3.4 Survey results about “Ticket purchase”
(Source: Surveyed data) 3.3.2 Indirect distribution
With indirect distribution methods, Moc Mien Homestay delivers products to the customer through intermediaries
Moc Mien Homestay has partnered with Ticketbox, Vietnam's first online ticketing company established in October 2013, to streamline the purchase of its homestay products Ticketbox aims to simplify and enhance the ticket buying and selling experience for events in Vietnam Customers can conveniently access the Mien Man Music Show via Ticketbox, where they can choose their desired ticket quantity, select a payment method, and submit all required information.
VinID has been selected, alongside Ticketbox, to distribute products for Moc Mien Homestay Through the Buy Tickets feature on VinID, customers can effortlessly purchase tickets for the Mien Man Music Show The platform provides comprehensive information about the event, including the schedule, performers, ticket classes, and seating options.
(Source: vinid.net) 3.3.3 Distribution channels chart
Promotion
The promotion mix refers to the strategic combination of advertising, public relations, personal selling, sales promotion, and direct marketing that a company employs to achieve its marketing and advertising goals Each of these methods offers unique benefits and drawbacks, making it essential for businesses to carefully consider their approach to effectively engage their target audience.
Advertising : Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Advertising includes broadcast, print, Internet, outdoor, and other forms.
Personal selling : Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships Personal selling includes sales presentations, trade shows, and incentive programs.
Public relations involves cultivating positive relationships with a company's diverse audiences by securing favorable media coverage, enhancing corporate reputation, and proactively managing negative rumors and incidents Key components of public relations include crafting press releases, engaging in sponsorships, organizing special events, and maintaining informative web pages.
Sales promotion : Short-term incentives to encourage the purchase or sale of a product or service Sales promotion includes discounts, coupons, displays, and demonstrations.
Direct marketing involves directly engaging with specifically targeted consumers and customer communities to elicit immediate responses while fostering long-term relationships This approach encompasses various channels, including direct mail, catalogs, online platforms, social media, and mobile marketing.
Figure 3.8 5 promotion tools and its example
(Source: Lecture content - University of Waterloo)
Mien Man Music Show targets customers aged 18 to 25, who possess strong technological skills and adaptability in learning This demographic can be effectively reached through diverse methods Considering the survey data and characteristics of the target audience, along with the high costs and challenges associated with personal selling, we have chosen to implement a combination of four promotional tools to optimize our outreach strategy.
Figure 3.9 Promotion tools in Marketing Strategy of Mien Man Music Show
As technology continues to evolve, young audiences increasingly prefer to purchase tickets and seek information online rather than visiting venues in person This shift underscores the importance of leveraging social media platforms like Facebook, Instagram, Twitter, and TikTok for advertising the Mien Man Music Show, ensuring we effectively reach and engage our target demographic.
Despite the decline of traditional mass media like television and newspapers, they still hold significant value Young audiences may not actively read newspapers, but discovering articles about the Mien Man Music Show in trusted travel publications boosts their confidence in the show's quality and service We plan to submit articles to reputable travel magazines, such as Tourism Magazine, which is overseen by the Vietnam National Administration of Tourism, under the Ministry of Culture, Sports, and Tourism.
Vietnamtourism Magazine (travel publication with food, entertainment, and lifestyle ranking No 1 in Vietnam), and Vietnam Traveler Magazine (an English- language publication targeted at a small percentage of foreign tourists).
Key Opinion Leaders (KOLs) are influential figures or organizations that shape the opinions of their communities, particularly among young audiences through social networks By harnessing the power of KOLs, we aim to build consumer trust, encourage behavioral changes, and promote the selection and use of our services.
The landscape of communication is rapidly evolving due to several key factors, particularly in the digital and wireless age Consumers are now more informed and connected, utilizing the Internet and social media to independently seek information rather than depending solely on marketers Online recommendations significantly impact consumer behavior, leading to the practice of "seeding," where we invest in posts that praise and discuss the Mien Man Music Show on social media platforms.
The Mien Man Music Show targets young adults aged 18 to 25, particularly those with low income who are either in school or recent graduates This demographic is notably price-sensitive, making discounts a key strategy to attract these young consumers to the brand.
A recent survey conducted by our group for assignment 2 reveals that young individuals favor traveling with friends and family rather than with partners, coworkers, or solo In response to this preference, we have implemented a 5% discount per ticket for groups of more than 10 customers to make group travel more affordable.
Customers can effortlessly book a room and access homestay information on the official Moc Mien Homestay website The site features details and images of the Mien Man Music Show, allowing visitors to experience the excitement of the performance online By booking directly through the website, customers can avoid paying commissions to travel brokers, ultimately boosting the profits from ticket sales.
To enhance our marketing efforts, guests must provide both a phone number and an email address when creating an account on our website This allows us to build a database of potential customers to whom we can send updates about upcoming shows via email and text Our communications will include show details, such as timing and special guests, while keeping the singer's identity a surprise and highlighting a unique theme each month We will refrain from disclosing ticket prices in our messages, instead sharing engaging concert photos and directing recipients to our official website for more information To ensure our messages are well-received, we will inquire about their preferences at the end of each communication, allowing us to adjust our outreach accordingly.
Flyers : Flyers can be a powerful internet marketing tool as well We will distribute flyers at well-known tourist destinations such as Moc Chau film studio
& pedestrian zone, Ban Ang pine forest, Nang Tien waterfall, and several well- known cafés like Canh Cam Cafe, Cafe Reply 1995, (Additional cost can be paid if necessary).
People
The human factor is a fundamental element in marketing, as suppliers play a crucial role in delivering products and services to consumers They are directly linked to quality and represent the business in customer interactions, significantly influencing the company's reputation.
The human factor is also a key factor, therefore, deciding in the selection and planning of training for human resources is always one of the top priorities of every business.
The Mien Man Music Show project aims to deliver an exceptional experience through a dedicated team of highly trained professionals in the hospitality industry Our production team consists of 15 skilled members, all committed to providing top-notch service and ensuring customer satisfaction.
Technical - logistics: Stage construction and installation department, sound - light department…
Service staff: Waiter/Waitress, Seat coordinator,
Graduated from universities, training institutes in the field of work, with at least 1-2 years of working experience, developing in his field of work.
The team of marketing and program building is qualified, enthusiastic, highly educated, with many years of experience in marketing.
The management team has many years of experience in training, human resource management, business strategy, marketing, …
Having basic knowledge about their professional, socio-cultural knowledge, and basic knowledge of the hospitality industry to be ready to support and answer questions for customers when necessary.
Master interpersonal skills: communication, active listening, flexibility, patience, empathy, teamwork.
Attitude properly and responsibly with his/her position and duties.
Professional and meticulous in all stages of organization and service throughout the program.
The attitude of closeness and intimacy with customers: being polite and welcoming all the guests.
It is absolutely forbidden to belittle customers, be indifferent and not fulfill responsibilities with job positions.
With behind-the-scenes staff: neat clothes, convenient to move, agile manners.
- T-shirt, organizer's uniform (if any), long pants, name tag.
- Dress politely, neatly, wear uniform (if any).
- Hair should be neat according to service standards, do not let hair fall into guests' drinks.
Staff with enthusiastic and friendly attitude when receiving customer feedback Regularly receive contributions from attendees through both face-to- face and online to improve service quality.
Enhance customer loyalty by offering companion benefits like discounts and vouchers for music show attendance For customers who attend two or more shows, provide rewards cards and incentives for each tier This strategy not only delights attendees but also encourages repeat visits to both the shows and homestays.
Send birthday greetings, thank you letters to customers on special occasions of the year via Email, SMS as a form of keeping interacting with guests.
Send monthly advertisements, program information, promotions and incentives to customers through connecting platforms so that more customers can grasp information and participate in the program.