Hilton Watford hotel is the most recognized name in the UK hospitality industry. Establish firm is famous for its innovative products, amenities and service. Hotel is situated center of city in Watford town. It is surrounded by museums and landmarks. Services offers by reputed hotel are lucrative and attract more customers. Hotel has conference & event organization room, reception and cherished library for luxury and executive class of people.
In this context, present report articulated about the hotel elements, products, and market segmentation contribution in maximize sales. Research report describes the external sales environment of company and use of external merchandising to maximize customer volume.
1.1 Key Components of Hilton Watford Hotel
Reputed hotel used marketing as a tool to make product more productive and attractive among customers. It provides tangible and intangible benefits. Establish hotel delivery of the consumable products and services effectively so customers attract towards the brands. Lucrative building & infrastructure, services like discount offer to different class of people, other facilities are unique as compare to other rivals magnetize the consumer towards product (Cant and van Heerden, 2005).
The Hilton Watford hotel in UK offers various kind of product related facility which describes as below:
- Bedroom of hotel are luxury that have features like Bed package, sheets, Glo lamp and rotated projection alarm clock, coffee brew trays, satellite TV and air conditioning etc.
- Restaurant & Bars of hotel offer different category of foods like vegetarian, non Vegetarian, Sea food etc. Hotel has a bar that serves several kinds of bear. Lucrative hotel has a Gym that offers services to luxury class and business class people. For entertaining hotel has Casino, it attract more customers to visit hotel. Other facilities provide by establish hotel are it provides perfect place for private functions, weddings. It organizes celebratory events that are work as an effective tool of marketing and targeted more customers (Ingram and et.al, 2007).
- Hilton Watford hotel offer heterogeneous kinds of products to fulfill the needs of different category. It has stylish drinking and dining venues. Hotel’s has parking facilities which are situated at the heart of the city. It offer 40% discount off at weekends to Government / Public Sector employee.
1.2 Contribution of Hotel products mix into sales and profit
Product mix contributed in increases the sales and profit of Hilton Watford hotel which describe in below figure:
Fig: Hotel Marketing Mix
Place and distribution: It provides facility to easily access of the products. Place or Location of the hotel is situated center of city Watford. Area near the city is outskirts and hill station. It use direct or indirect distribution methods to penetrate more customers. In direct method, hotel used sales through hotel sales team, Banner Advertisements (Use of social media), Hotel Website Booking System and Global distribution system. While in indirect method, maintain good relation with travel agents and event planners. Hotel effective uses of Online Travel portals and focused on other promotion activities like mail campaigns and making public relations (Maier, 2012).
Price strategy: Reputed hotel attract customers by providing discounting and devaluing facility on products. It concentrated on different class of people like business class, luxury class and special discount for government employees at weekend.
Promotion and communications: Sales & Marketing techniques adopted by reputed hotel to communicate with target customers. Various kinds of communication channels are used like Websites, commercials advertisement, Social media (Twitter, Face book, you-tube, Google + Page, Billboards etc.
Service offered: It delivers worlds class services to their potential guest/ customers. It has luxurious rooms and well trained staff to maintain good relationship with customers. It focused not only old customers but also penetrate new customers towards products. Hilton Watford hotel offer different type of product guest rooms, banqueting rooms, conference & seminar room, express check-in checkout services, parking facilities etc (Mungall and Labben, 2009). To attract business class of people it provides video conferencing, internet connectivity, Wi-Fi facility etc.
1.3 Market segmentation contribution in sales
Measurability, Accessibility and sustainability are the necessary action for effective segmentation of the market. Market is segmentation on basis demographic reason, geographic, culture, Psychographic and Behavioral wise. It influence through purchasing power and consumer behavior. To increase the sales and profit subdivision of market is necessary.
Hilton Watford hotel segment its market on basis of several factors which explained as follow:
Demographic profile: Establish hotel provides various services to their customers on basis of the income level like government employees get discounted 40% at weekend; Age wise, attracted luxury as well as business class people by offering products match with their needs. Other factors like individual needs, social motives of guests, behavioral and expectation consider into segmentation of market and contribution in enhance sales and profit (Nickson, 2013).
Psychographic Segmentation: Market divide on basis of the life style of persons includes belief, attitude related to product. Price are set and room is classify on behalf that.
Geographic Segmentation: To capture large amount of customers divide the market into region, national and international wise. Categorize the market consider the factor like income, occupation, business and generation wise.
Behavioral Segmentation: Customer targeted on basis on their behavior related to products & services including Marriage functions, parties organize in hotel. So more customer attracts towards products and enhance sale of organization.
Hilton Watford hotel focused on loyal class customer segment but it offer discount to Government / Public Sector employee on best available rate at weekends. It provides other facilities are gym, guest room, conference room for business class with internet and video conferencing facility etc.
2.1 Factors affecting buying behavior base on Hilton Watford hotel, UK
Various factors that affect behavior of consumer are described as below:
Culture factor: Culture is the part of society and it is important to understand the person’s wants and behavior. It conveys message values, ideas and thoughts that can be helpful for individual. Religions, nationalities, geographic and racial groups come under subculture. The culture of Hotel is very good and well behaves with every kind of customers (Principles of Marketing, nt.d).
Social factor: Reference groups, family, role and status are influence the behavior of customers. It offer various kinds of services to their customers like dining-out habits, travel guide, discount at weekends to government employees etc. Hotel targeting loyal class of people through organize meetings and marriage functions etc. Advertise in publications and use of social media to attract more customers towards brand.
Personal factors: Factors that influence the behavior of customers are economic situation, income level, age, personality, self concept and lifestyle related activity like opinions and demographics erratic provide discount government employees ate weekend etc.
Psychological factors: It includes factors those affect the customer buying behavior are perception, beliefs and attitudes. By launching special campaigns Marketers can change the beliefs and attitude of customers (Wood and Brother ton , 2008).
The firm use Image Merchandising concept, it contains the main objective of company and core strengths. Hotel increase its image by branding and campaigning. With helps of Internet, website, marketing campaigning and discounting policies increase awareness among people.
It includes the floor plans and guest visual plan of room imaging that matches with customer needs.
2.2 Use of advertisement in sales development situation
Hilton Watford hotel, UK advertises its products with helps of direct and indirect advertising tools. It targets loyal class people by organize events and invite celebrity to promote their brands. Reputed hotel also used other tools for marketing are Magazines, Posters and bulletin boards and Telemarketing. Government class employees attract through discount policy offer by them.
For attracting business class persons they offer Telemarketing, Internet facility with Wi-Fi connection and video conferencing facility. Firm maintain database of customers by maintaining the database firm make strategy to penetrate new customer segment as well as maintain record of existing customers. Establish firm use direct mail to inform customers about new plans and discounting polices. Market campaign is done to trigger quick sales that results in form of increase sales and profit. Hotel makes strategy to increase awareness about brands and target large segment of audience (Dudovskiy, 2013).
It establishes itself as a frontrunner with help of effective advertisement that increase awareness among people and helps in better compete with their competitors. Reputed hotel effective utilization of resources by using advertisement media in sales activities. Enhance their sales throughout the year with increasing profit margin. Advertising is very helpful for hotel to reap large geographically dispersed target audiences and expand their business operations in cross country nations.
2.3 Evaluation of the use of external merchandising to maximize customer volume
Customer behavior is used to promote and make the brand image. Through effective product selection and design maximize hotel sales revenue. Merchandising is a techniques that is used for stimulates consumers to spend more on offer services (Hilton worldwide, 2014).
External merchandising is divided mainly in three categories which describe as follow:
Mass merchandising: Organization makes strategy to concentrate every kind of visitors. It offers similar services to general class