research in hospitality industry
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Role of research in hospitality industry
A snapshot of various kinds of research projects
April 2012
Introduction
This document is a proposal detailing how research can make a difference in the high end hotels industry
Presented herewith is an understanding of the industry in India and key research types that can add value for the hotel/hospitality brand
4/5/2012 2
An appreciation of the Indian Hotel industry
Contents Salient features Key trends
Indian Hotel industry – Salient features
Growing economy that is predicted to smooth-sail upwards in 2012 Burgeoning demand contrasted against insufficient growth in supply Leading
to Rising rates and overall boom in the high-end sector
More than 95% of business accounted by domestic travelers amongst which business travel accommodation is touching unprecedented levels …
Business likely to fructify significantly in metros given the strong demand from IT professionals for accommodation in metros
A large number of International budget hotel chains are poised to enter Indian soil
Back home, around 3 times as many hotel projects in the luxury segment have been approved by the Indian Government & will fructify around 2012
2012-2012 can be a phase where there can be a tussle of sorts between full-service players in luxury segment as well as evolving Indian & International budget chains
4/5/2012 4
Trends in Indian Hotel industry
The industry is witnessing a sleuth of Value offerings – Cross breeds that claim the best of 5-star at prices of 3-4 star
Increasing disposable income, higher global exposures through media & frequent international travel have introduced different customer breeds into the fray who come with expectations of a completely different order
There is a high experimentation in the high-end hotel industry with the launch of theme-led properties, as an effort to differentiate
Recession coupled by introduction of lucrative Enterprise benefits has led to a breed of demanding enterprise customers
1. Rising quality of service delivery in hospitality – A general trend, thus there are no apparent long-term ‘differentiators’ in the sector, only sustainable brand value
2. Changing definitions of ‘Luxury’ & ‘Value’ – these 2 attributes are starting to carry multifarious layers & shades across customer segments
4/5/2012 5
Research for Hotel industry
Contents Research for Hotel brands Research for Restaurants
Research for Hotel industry
Given that the 5-star Hotel industry in India is high on involvement and moderate on clutter, owning a sustainable brand heritage and delivering compelling positive touch points to customers at all times becomes an imperative
There are 2 levels at which consumer touch-points mostly materialize in hotel industry:
4/5/2012 7
Hotel Property experience
Restaurant experience
Touch-points rub-off on overall Hotel brand
Touch-points rub-off on the Restaurant Brand + Hotel brand associated if
any
Research solutions accordingly need to
address the overall Hotel brand
Research solutions accordingly need to
address the Restaurant
Research for Hotel brands
There are 3 broad areas where research can make a difference for any Hotel brand:
4/5/2012 8
Brand health & Equity research
Satisfaction research
Brand mix research
1. How are we performing as a brand & how are our individual properties performing?
2. What is the strength of our heritage across different customer segments & what values sustain & drive our overall brand heritage?
1. How well-entrenched are we with our guests & whether there is need for action to further current loyalty levels?
2. How satisfied are our employees with us & why does attrition happen?
How well are our marketing AND other inputs supporting us in sustaining our brand health & equity & other tactical goalposts?
Research for Restaurants
There are 3 broad areas where research can make a difference for a Restaurant:
4/5/2012 9
Consumer related research
Menu related research
Mix of Touch-points (MoT) research
1. Profiling research
2. Consumption attitudes & behavior mapping (CAB)
3. Consumer diagnostics
4. Trend analysis wrt F&B genres
1. Developmental research
2. Menu assessment research
3. Pricing research
4. Fatigue tracking
This involves assessment of overall satisfaction, delight &
diagnostics for all consumer touch-points
at the restaurant in the competitive
context
Brand health & equity research
Contents Scope of research Brand Health – Dimension
s Brand Equity – Dimension
s Research design
Research for Hotel brands
Brand health & Equity assessment – Scope
Premise of a brand health & equity research is that a brand needs to be assessed in line with any internal/external interventions in order to evolve as a preferred service brand
Key dimensions that are gauged within this for both own brand & competition are:
How is the brand faring on these indices pre / post any marketing intervention?
What indices need to particularly addressed to bolster brand performance?4/5/2012 11
Brand health Brand equity
1. Brand Salience2. Brand Perceptions
1. Product (Property) rating
2. Service rating3. Extent of Brand
bonding1. Disposition to
brand2. Entrenchment3. Imagery
1. Brand imagery1. Brand associations2. Brand Values
2. Decoding Brand Perceptions
1. Strengths & Weaknesses
2. Differentiators3. Quality of Brand
bonding1. Personal relevance
(Empathy) & Esteem
2. Differentiation
Brand health assessment – Dimensions
This assessment constitutes rating of overall brand and competition on select indices that together constitute ‘overall brand health’
It will primarily yield perceptual rating in terms of Salience and Brand perceptions of the brand & properties as against Competition
Key assessments that are made to determine overall brand health detailed as follows –
Salience Brand perceptions
Product rating Service rating
Top of Mind recall Spontaneous
recall Aided recall Spontaneous Ad
recall Aided Ad recall
Rating of brand, properties & its sub-units as against expectations on Reach / Availability Perceived Quality Experience Price
Service availability Service reliability Perceived service quality Staff rating on image,
communication skills, responsiveness, expertise, courtesy & empathy
4/5/2012 12
Brand health assessment – Dimensions (Contd.)
Brand bonding will be assessed through following measures detailed below –
Assessment of Salience, Perception rating and Brand bonding parameters will yield overall status of our brand in the marketplace vis-à-vis competition …
It will also highlight areas where we score above competition & whether there are any areas where we are on par or below that need bolstering
4/5/2012 13
Disposition Loyalty Imagery
Overall disposition towards the brand vs competition wrt: % Adorers % Adopters % Accepters % Available % Rejecters
Extent of loyalty amongst own vs competition guests wrt – % Will only always visit % Will visit X brand
hotel or others % Will visit only
competition
Strength of association of brand with desired imagery parameters over & above competition such as – Authentic Iconic Discerning Heritage Perfectionist Etc
Brand equity – Dimensions
Brand equity research yields the subjective value of the overall brand as well as equity of individual properties
It involves exploration of following dimensions & strength of association of values that emerge from the following articulations – Associations Decoding of Strengths, Weaknesses & Differentiators Brand Values & Quality of Customer Bonding
Identification of Brand values & quality of bonding involves use of Brand Essence Wheel
Brand Essence Wheel breaks down the overall equity of the brand into
1. What the product/ brand does for me
2. How I will describe the product/ brand
3. How the brand makes me look
4. How the brand makes me feel The above 4 questions cover both rational and emotional aspects with respect to
the brand and hence give a holistic picture of esteem & empathy with brand & can be further used to developing the core of marketing communications & brand initiatives4/5/2012 14
Brand equity – The Output
Rational
Emotional
What the propertydoes for me
How I woulddescribe the
property
How the brandmakes me look
How the brandmakes me feel
BRAND PERSONALITY
FACTS & SYMBOLS
CORE
Framework of Outputs on the Brand Essence Wheel for brand & Competition
4/5/2012 15
Brand health & equity assessment – Research Design
Centers recommended
Pan India – Concentrating on all 4 Metros and representation of key Non metros
Target audience
TG must be representative of the actual universe
Hence need to represent following segments for both brand & Competition across Luxury, Premium, Mid-market and Value categories –
1. Individual segment1. Business travelers
2. Leisure travelers
3. Business cum Leisure travelers
2. Corporate segment1. Enterprise decision makers
2. Employee frequenters across grades
4/5/2012 16
Brand health & equity assessment – Research Design (Contd.)
Methodology
Brand Health AssessmentTypically, Brand health assessment necessitates Quantitative methodology, but also needs to be supported by Qualitative methodology for decoding various measures
Technique – Given the nature of TG, typically one-on-one approach works bestHence One-on-one Structured interviews supported by One-on-one In depth interviews are recommended
Brand EquityGiven that one is aiming to capture softer nuances in terms of brand associations, imagery & overall core, Qualitative methodology is necessitated
Technique – Focus groups are best equipped for the task. But for logistical reasons, one-on-one In depth interviews may also be considered
4/5/2012 17
Satisfaction Research
Contents Scope of research Guest Satisfaction research Employee Satisfaction rese
arch
Satisfaction research – Scope
Objective of Satisfaction research is to ascertain current satisfaction levels of key stakeholders vis-à-vis competition
Typically, a satisfaction research for 5 star hotel brand covers 2 stakeholders –
These dimensions are detailed further …
4/5/2012 19
Guest satisfaction
Employee satisfaction
Overall Satisfaction with Brand
Overall Entrenchment with Brand
Overall customer experience at our properties
Overall loyalty, positive WOM & repeat business for our properties
Overall Satisfaction with company
Overall Satisfaction with individual work dimensions
Decoding of satisfaction levels Reasons for loyalty / attrition
Overall entrenchment
Guest Satisfaction research – Measures
Typically, a satisfaction research amongst guests for a high-end hotel brand involves assessment & decoding of following dimensions at an overall level –
Overall satisfaction rating Overall rating on levels of Entrenchment
Overall Satisfaction with specific properties
Satisfaction with Brand Individual Properties
ever visited Facilities across
properties Staff across properties Perceived service levels
across properties
Entrenchment with Brand
Individual Properties ever visited
Entrenchment with brand for different occasions Business Leisure Business cum
leisure
Image Location Landscape & expanse Ambience & décor Room options Facilities – Restaurant,
Food, Business center, Banquet facilities, Spa, Gym, Shopping, Security, Travel facilities etc
4/5/2012 20
Guest Satisfaction research – Measures (Contd.)
The research also involves assessment & decoding of following dimensions in detail for properties in which ever stayed –
4/5/2012 21
Satisfaction with Overall Service
Satisfaction with In-room service
Satisfaction with Staff
Services offered – availability
Perceived quality Overall Service
Experience Pricing Any other parameters
In-room ambience In-room facilities &
amenities Room service Overall In-room
Experience Pricing Any other parameters
Staff availability Staff accessibility Image Communication skills Responsiveness Expertise Courtesy Empathy levels Any other parameters
Guest Satisfaction research – Outputs
Key outputs of Satisfaction research is the rating of our brand amongst own guests and competition brands amongst competition guests on the following
1. Overall Satisfaction index and distribution
2. Satisfaction drivers and rating on Satisfaction drivers
3. Entrenchment levels and rating on Entrenchment drivers
Overall composite customer satisfaction index, which can be tracked over time
These are further broken down into various tangibles & measurable domains detailed and reported at following levels –
1. Overall pan India
2. By Customer segment
3. By Property
This will also yield the key reasons driving current scores vis-à-vis competition and key improvement areas that can improve scores in the short-run as well as long run
4/5/2012 22
Guest satisfaction research – Design
Methodology
Typically, this necessitates Quantitative methodology, but also needs to be supported by Qualitative methodology for decoding current satisfaction levels
Given the nature of TG, typically one-on-one approach works best. Hence One-on-one Structured interviews supported by One-on-one In depth interviews are recommended
Centers recommended
Pan India – Concentrating on all 4 Metros and representation of key Non metros
Target audience
TG must represent all properties for both brand & Competition across Luxury, Premium, Mid-market and Value categories, covering following profile of guests –
1. Individual segment - Business travelers, Leisure travelers, Business cum Leisure
2. Corporate segment - Enterprise decision makers, Employee frequenters across grades4/5/2012 23
Employee Satisfaction research – Scope
Given that the high-end hotel industry is manpower driven, it is crucial to determine employee satisfaction amongst both current & ex-employees
This will involve assessment of satisfaction and reporting wrt following dimensions – Overall employability rating as an employer in the market place Overall satisfaction with working for the company Satisfaction with respect to –
– Role definition & clarity
– Work environment
– Day to day working experience
– Interaction with peers / superiors
– Remuneration
– Growth opportunities
– Any other parameters
Decoding of satisfaction in terms of –– High points & Low points
– Reasons for Loyalty / Attrition
4/5/2012 24
Employee Satisfaction research – Design
Methodology
Typically, this necessitates Quantitative methodology amongst Current employees and Qualitative methodology to explore attrition amongst ex-employees
Given the sensitivity of information captured, one-on-one approach works best
Hence One-on-one Structured interviews amongst current employees supported by In depth Interviews & One-on-one In depth interviews among Ex-employees recommended
Centers recommended
Pan India – Concentrating on all key Properties
Target audience
1. Current employees – Front-end & Back-end across different functionalities
2. Ex-employees
4/5/2012 25
Brand Mix Research
Brand Mix research
Brand Mix research involves study of impact and efficacy of brand mix elements (external inputs) in following areas –
These researches can address ad-hoc requirements in tune with marketing interventions for the brand
4/5/2012 27
Elements testing Delivery related research Secondary research
Concept testing for a new property
Communication development
Advertising pre-testing
Advertising effectiveness testing
Sourcing related research
Product (Menu etc) development
Pricing research Benchmarking studies
Market overviews Market intelligence Trend analysis
Consumer related research
Contents Profiling research CAB research Consumer diagnostics Trend analysis
Research for Restaurants
Profiling research
Objective of Profiling research is to ascertain the profile of customers who contribute to footfalls and / or business for the restaurant
Key dimensions on which consumers get profiled are outlined below:
The research requires quantitative methodology through one-on-one structured interviews with guests from the database maintained by the restaurant
Outputs from profiling can be used for appropriate targeting of the restaurant & its overall milieu
4/5/2012 29
Demographics Lifestyle Dining out
Age & Gender Education Occupation SEC Income (MHI / MPI) Type of residence
Durables ownership Shopping habits Leisure activities Media habits – Print,
TV, Radio, Internet, Mobile internet etc
Club membership if any
Frequency of dining out With whom & size of
party Restaurants ever visited Most frequented
restaurant Restaurants lapsed out
of Menu last ordered Monthly Spends on dine
out
Consumer Attitudes & Behavior mapping
Objective of CAB research is to gain understanding of consumer attitudes & behavior with respect to dining out / fine dining
This research is typically done with a developmental view prior to new launch, theme change / re-design or for an upcoming restaurant
Dimensions that are explored herewith are:
The research necessitates a combination of Quantitative & Qualitative methodology
TG targeted is frequenters of 5-star / fine dining restaurants across age groups
Output is typically used to strategize design / launch of the restaurant4/5/2012 30
Attitudes wrt dining out Habits wrt dining out Preferences
Purpose of dining out Motivations & barriers if
any Expectations from a fine
dining / 5 star restaurant Descriptors of overall
experience Overall pay-offs sought
Rational Emotional
Frequency of dining out Time spent per visit With whom & size of party Menu last ordered Monthly Spends on dine out Restaurants - Ever visited, Most
frequented, Lapsed & reasons Choice process & drivers of
choice Satisfaction, Loyalty &
Disposition
Importance, differentiation & preferences wrt – Brand name & Image Ambience & décor Menu – F&B Service Staff Any other touch
points
Consumer diagnostics
Objective of Consumer diagnostic research is to gauge reasons for either or all of the following –1. Consumer delight Understand delight factors / elicit testimonials2. Consumer satisfaction Freeze on aspects that should be sustained3. Consumer dissatisfaction evidenced by poor feedback / low satisfaction /
lapsage Aid in taking relevant corrective measures
Such research is typically Qualitative in nature and conducted through In depth Interviews
TG targeted is ‘own’ guests from the most recent (last 3 months) database maintained at the restaurant
Output is used to either enhance delight factors and / or take relevant corrective measures to avert dissatisfaction
4/5/2012 31
Trend analysis for F&B
Trend analysis in F&B is typically undertaken for a restaurant with the objective of maintaining a sustainable edge in terms of delivery in the fine dining market
There are 2 stages to any trend analysis –1. Stage 1: Ideation / Articulation from ‘discerning’ consumers + Chefs, of all F&B
genres, menu & dishes aware of, ever consumed, never consumed & desire to consume, never consumed & do not desire to consume
2. Stage 2: Classification of F&B genres, key dishes of own & competition restaurants into 4 piles –
Stage 1 of the research requires Qualitative interaction with Chefs in the fine-dining industry and ‘discerning’ consumers, typically acknowledged food connoisseurs / experts
Stage 2 of the research requires Quantitative structured interviews with frequenters of fine dining / 5-star restaurants
Output from the research is strategic in nature and must be used with a long-term developmental view4/5/2012 32
Evergreen genres Emerging genres Steady genres Declining genres
Must always be present in any 5 star / fine dining restaurant & will
always be consumed
Not consumed by all, but high desire for trial / high on
imagery – Growing genre
Consumed by many & winning steady
patronage – well-accepted but not endorsed by all
Declining steadily on consumption as well
as imagery – Low demand overall
Menu related research
Contents Menu research Pricing research Fatigue tracking
Research for Restaurants
Menu Developmental / assessment research
There are 2 types of Menu research –1. Iterative Development
1. This is done at an experimental stage2. Basic menu developed by chef is force-tasted by consumers by trial
offer & rated3. Based on ratings, the Chef iterates the menu over a fixed time period
until scores are above par on satisfaction & delight levels2. Menu assessment research
1. This is typically done for a menu already in place2. Consumer ratings are taken post force-taste through a trial offer to
validate preference and prioritize preference across dishes tasted3. The research may also be accompanied by feedback to menu card /
card options
Objective of Menu Developmental research is to obtain cues for finalizing menu for a new / upcoming restaurant or for a restaurant that is changing its menu
Objective of Menu assessment research is to validate consumer satisfaction & delight specifically with the menu at the restaurant – note dips as & when they occur for corrective action
The research is conducted by means of placing a feedback form at the restaurant which every guest is requested to fill in post meal – findings are analyzed by agency
Output is used to fine-tune & prioritization of menu options OR to ascertain if any of the menu options require corrective measures
4/5/2012 34
Pricing research
Objective of pricing research is to aid iteration in arriving upon optimal pricing for menu in order to make it competitive & to drive preference by means of value proposition
Pricing feedback for a 5-star restaurant poses following challenges –– Standard feedback scales & options such as ‘slightly expensive’ or
‘too expensive’ are translated into consumer’s projected image ‘difficult to afford’ / ‘cannot afford’ … hence standard approach cannot yield results in this category
– For certain menu options, a statistically significant base may not be possible
In this scenario, all Pricing questions done for menu for a 5-star restaurant are typically MASKED and feedback is taken at TWO levels for each dish –– FEEDBACK FROM MENU CARD MINUS TASTING – Respondent asked to rate
each menu option along with recipe and price, on following scales• Interest in Recipe – ‘1’ being ‘Not at all interesting’ to ‘5’ being ‘Very interesting’• Willingness to try – ‘1’ being ‘Definitely will not try’ to ‘5’ being ‘Will definitely try’
– FEEDBACK POST TASTING – For dishes tasted, post billing, respondent is asked to rate each menu option along with price on following scales• Satisfaction with each dish• Willingness to try again – ‘1’ being ‘Definitely will not try’ to ‘5’ being ‘Will definitely
try’4/5/2012 35
Pricing research (Contd.)
Analysis is done by checking the extent of negative correlation between ‘Interest in recipe’ and ‘Satisfaction post trial’ against ‘Willingness to try’
Research will indicate whether price is having a negative rub-off on overall willingness to try or not
The research is conducted by means of placing a feedback form at the restaurant which every guest is requested to fill in pre-meal and post-meal
Findings are analyzed by agency
Output is used to understand whether current pricing is leading to lower trials of certain menu options or not
4/5/2012 36
Fatigue tracking
Objective of fatigue tracking is to gauge whether consumers are starting to develop fatigue towards existing menu and whether a re-design needs to be considered
This is typically an additional analysis conducted post regular Menu assessments
Key aspects looked into for identifying fatigue with a particular menu option are –1. Low trial over 3 consecutive assessments
+2. Consistently low ratings over 3 consecutive assessments
+3. Low willingness to trial or re-trial
Fatigue track flags consecutive dips as and when they occur, thus enabling immediate corrective measures / timely redesign of menu
This analysis is done only amongst REGULAR consumers at the restaurant (who frequent the restaurant at least once in 2 months)
4/5/2012 37
Mix of Touchpoints (MoT) research
Research for Restaurants
Mix of Touch-points (MoT) research
Objective of MoT research is to have an overall assessment of delivery at the restaurant in the competitive context
In this research, own and competition restaurants get rated on following dimensions– Theme, Ambience, Décor, Lay-out– Furniture, Cutlery & Crockery etc– Staff – Image, Attire, Communication, Expertise, Empathy, Turnaround time etc– Overall Menu – Menu card, Range of dishes etc– F&B – Presentation, Uniqueness of Taste, Quantity, Innovation in menu etc– Pricing– Any other factors
TG targeted is frequenters of 5-star / fine dining restaurants across age groups + Guests from the database maintained by the restaurant one-on-one
Research requires quantitative methodology through structured interviews
Output compares scores of own restaurant with own guests versus competition restaurants amongst competition guests – thus serves as an assessment to arrive upon overall standing
4/5/2012 39
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