Application
This unit describes the performance outcomes, skills and knowledge required to manage the strategic product development process from initial research through to product establishment and monitoring.
The unit applies to all industry sectors and to senior personnel working in strategic planning and product development roles. This could include product development managers, marketing managers, operations or general managers, regional tourism managers, account managers, events managers, resort or hotel managers and owner-operators.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Research the market. | 1.1.Focus product research according to organisational objectives. 1.2.Evaluate information sources for tourism, tourism market trends, and distribution and marketing networks. 1.3.Consult with internal and external stakeholders. 1.4.Analyse current market trends, needs, and product and service gaps. 1.5.Identify product development opportunities and target markets, including opportunities for new and innovative approaches. 1.6.Evaluate distribution and marketing networks that support proposed tourism product, including the use of new technologies. |
2. Analyse issues relevant to product establishment. | 2.1.Identify and analyse product preferences and quality expectations of different consumer markets, including those with special needs. 2.2.Identify and assess external issues that impact on establishing a product. 2.3.Assess suitability of destinations for accessibility and availability of services for target markets. 2.4.Assess organisational capacity to provide proposed product and identify additional resources required. 2.5.Consider issues relating to product life cycle. |
3. Determine profitable selling price. | 3.1.Determine net delivery cost by identifying expenditure items. 3.2.Identify organisations involved in the product distribution network and the commission or mark up structures that would apply. 3.3.Incorporate distributor commissions or mark-ups, and determine required profit margin and mark-up for profit. 3.4.Make reasonable cost adjustments to ensure price-competitive product. 3.5.Estimate expected income and assess profitability and yield. 3.6.Clearly and accurately document pricing structures. |
4. Establish the product. | 4.1.Create and implement product development plan that incorporates strategies and actions for marketing, communications and implementation. 4.2.Communicate plan to relevant internal and external stakeholders. 4.3.Where appropriate, test new products and services in marketplace prior to full implementation. |
5. Monitor and evaluate the success of the product. | 5.1.Monitor product development initiatives based on feedback and other business factors. 5.2.Identify and action changes required in a timely manner and according to any contractual obligations. 5.3.Communicate changes to relevant colleagues, customers and distributors. |
Evidence of Performance
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
research, assess and develop a new product or service for a tourism operation, including:
analysing current industry, market and organisational information
gap analysis of current products or services
determining costs of delivery, distribution and commission structure and setting a profitable selling price for the new product or service
creating a product development plan
developing measures of success and return on investment for the new product or service.
Evidence of Knowledge
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
features and inclusions of a product development plan
tourism industry structures, interrelationships and networks
tourism industry information sources:
government bodies:
funding agencies
land management agencies
internet
local people
reports and research:
local, state, regional or national marketing plans
statistical data
public and private research bodies
tourism operators:
accommodation
destination marketing companies
tour operators
inbound tour operators
tour wholesalers
tourism organisations and associations
training agencies
distribution and marketing networks that support tourism products in the relevant context
key stakeholders in local, regional, state and national tourism organisations and the structures of these organisations at each level
current market trends, products and service styles that meet certain market requirements and quality expectations
current tourism product base for the proposed destination and market to be serviced
current and proposed products and services of competitors
features of the destination at which the product will be delivered
aspects of laws that impact on tourism operations and actions required of tourism operators:
consumer protection:
providing services as advertised
terms and conditions
refund requirements
cancellation fees
child sex tourism
legal liability insurance requirements and duty of care to customers
environmental protection:
licences
permits
accreditation
minimal impact practice
local community protection:
land ownership, management and access requirements
factors impacting organisational capacity to provide proposed product:
destination factors:
capacity to sustain tourism
impacts of potential product diversification for the business
profitability issues
resource constraints
skills requirements
sustainability:
economic
environmental
current credentials
legislative, accreditation, permit requirements
minimal impact issues
social and cultural
risk assessment and control requirements
financial operating costs in tourism organisations; desired profit margins and achievement of high yield in order to determine an appropriate selling price
expenditure items relevant to the development of tourism products:
capital costs and proportion attributed to the product
fixed costs
human resource costs
insurances
licensing and permit fees
marketing costs
operating costs attributed to operating the product
supply of component products and services
variable costs
industry commission and mark-up procedures and rates appropriate in the relevant industry context.
Assessment Conditions
Skills must be demonstrated in a tourism business operation for which tourism products can be developed. This can be:
an industry workplace
a simulated industry environment set up for the purposes of assessment.
Assessment must ensure access to:
current information and communications technology
current tourism industry data and information sources about tourism market trends.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors; and:
have worked in industry for at least three years where they have applied the skills and knowledge of this unit of competency.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement. | |
SKILLS | DESCRIPTION |
Reading skills to: | interpret complex tourism research documents that relate to tourism trends, market statistics, information on market preferences and requirements. |
Numeracy skills to: | assess the profitability of various product options complete complex budgetary costings calculate different commission and mark-up structures. |
Problem-solving skills to: | make strategic responses to product development challenges. |
Initiative and enterprise skills to: | evaluate and develop strategic responses to complex marketing and business information. |
Planning and organising skills to: | coordinate implementation aspects of product development. |
Technology skills to: | work with current tourism management and marketing systems. |
Sectors
Tourism
Competency Field
Planning and Product Development