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Business strategy development-

Suppose, “24 hour fitness” health club which is situated in california USA launches a special
nutritional health drink that is only available on monday. It must get conflicted with its 24/7
mission statement in its naming. It must launch anything, get along with its mission statement.

2. New service strategy development

Actually a new service strategy depends on organization's goals, capacity, vision, growth plans.
An organization will be in a better position of idea generation if it properly decides where it
wants to see its product on innovation strategy matrix. Above, I mentioned “24 hour fitness”.
Their fitness club declined to 400 in 2017 which was 450 in 2014. In 2019, they bought 16 new
space areas in various locations. Their CEO says that they were focusing much on opening new
branch but now they want to focus in increasing and improving own facility. That means they are
planning to follow market development strategy. Grab new markets with existing products.

3. Idea Generation

I think for a health club, the best way to generate ideas is to communicate with customers and
always monitor competitor’s offerings. Health club may organize a complaint box. Unsatisfied
customer can complain through which club can take improved measures or start a new service
that can attract potential customers. Another creative idea would be online poll where their
target customer spends more time. In online poll, different peoples’ suggestions can be a good
source of idea generation.

4. Service Concept Development and Evaluation

Earlier I mentioned that ”24 hour fitness” club wants to launch a nutritional health drinks. So
after deciding this idea, they launched it in a limited number of their branches. And monitored
customers’ responses and complaints or delight. Also they took note on how their employee
operating this new service. This data will them to establish new service characteristics and help
find a reason to offer new service.

5. Business Analysis

We forward to this step if we have a positive result from previous steps. Suppose, our newly
proposed nutritional drinks had been accepted positively. Then we must estimate the economic
and feasibility test. We must run through cost-benefit test. As I mentioned earlier, “24 hour
fitness” club wants to introduce this drinks only once in a week and that is monday, even not
weekend. I think to success in this service we need to provide this drinks at least three days in
a week including weekend as we have seen gym members spending more in weekend than
other days.

Implementation- ​As all the steps in front-line passed we move onto this steps.
1. Service Prototype Development and Testing

Here we will build a prototype of our drinks to know customer acceptance. So to say, we will
build a solid blueprint for our newly proposed nutritional drinks. From where it will be served,
how it will be displayed, who will serve. Everything will be included in the blueprint.

2. Market Testing

For a health club, market testing could be difficult if it proposes intangible things. But if a health
club propose products like new health drinks or protein shake, it will be easy because it is
tangible. To evaluate the new service, a health club can adopt two ways such as offer the new
service to its premium members or offer the service to employees' relatives who are health
conscious to collect the response.

3. Commercialisation

Finally we deliver the service into the real market in this step. To increase the acceptance of the
proposed service, a health club can add its instructors when designing service as they are the
main person who monitors members all the time.

4. Post-introduction Evaluation

Collecting data is not an easy task when it is intangible product as it is constantly co-created. If
a health club hubs its employees as data collector for its newly service, employees should be
neutral in collecting and providing data to the club. After that club will evaluate where it should
improve or focus more to grab market share.

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