An Overview of Developing Product Strategy

Prepared by: Astrid Widayani Wibowo Kristianto

y Since its introduction in 1999, the Westin

Heavenly Bed has lulled guests into deep, restful sleep while winning accolades as an industry-leading innovation. y Because good sleep is critical for both mental and physical health. Westin has designed every detail of the Heavenly Bed to evoke superior slumber from the crisp, white 250-thread count sheets to custom mattresses. Bedtime has never been more heavenly.

the Heavenly Bath redefines the shower experience for guests by offering industry firsts such as an exclusive dual showerhead and a revolutionary curved shower rod that gives you eight additional inches of elbow room. Our signature spa amenities, Brazilian combed cotton bath sheets and custom-designed velour bathrobes are powerful incentives to lure you out of bed and help you start your day feeling pampered and invigorated.

Other Products

"Superfoods" known for being rich in antioxidants and phytonutrients will be the main ingredient in Westin signature dishes such as banana oatmeal brul, green-teainfused salmon and molten dark chocolate cake, the company said. In addition to incorporating the SuperFoodsRx theme, Westins new menu features enhanced design including crisp imagery and improved readability.

Five Product Levels Customer-value HierarchyCore benefit Basic Product Expected Product Augmented Product Potential Product

Components of the Market OfferingValue-based price

Product features and quality

Services mix and quality

Idea Generation

Idea Screening

Concept Development

Product Development

Business Analysis

Marketing Strategy

Market Testing

Commercialization

Exhibit 2b RevPAR19 for Westins Competing Brands, 1998-2000year Westin Marrott renaissance hilton

1998 1999 2000

$ 94.87 $ 98.4 $ 117.13

$ 107.60 $ 109.60 $ 116.89

90.95 93.54 103.61

87.69 90.01 98.76

In the year 2000, westin hotel succeed in launching the hotels new product heavenly bed and increased revenue dramatically from $ 98.4 to $ 117.13Source: Case authors research. Hotels, room numbers and financial data come from the companies Annual Reports.

The Breath Program

The Sensory Welcome Program The Service Culture Renewal

Operation of a Lifestyle Experience

Exhibit 8 J.D. Power and Associates Guest Satisfaction Surveys, 2001-2006. Select Upscale Market Segment Hotel Brandsyear westin hilton marriott omni renaissance average

2001 2002 2003 2004 2005 2006

100 110 802 793 782 794

102 n/a 784 758 770 793

107 109 817 772 782 803

104 107 818 785 801 809

106 114 823 784 796 804

100 105 793 764 773 778

Source: JD Power figures come from the annual JD Power and Associates North America Hotel Guest Satisfaction Index.

The idea is good, but the market size is overestimatedThe actual product is not well designed

The new product is incorrectly positioned in the market

Development cost are higher than expected Competitors fight back harder than expected

Analysis of Solution AlternativesProduct Leadership Westin invented new product The product will be a competitive advantage

Customer Intimacy Westin launched new strategy The strategy is about personal renewal

Operation Excellence Westin educated all the employees about hotel branding The operation of this strategy has cultural difficulties

Repositioning StrategyCustomer Intimacy

Ingredient Branding