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Sales & Merchandising

Use of External Sales Environment & Merchandising

INTRODUCTION

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.

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TASK 1

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:

hotel-marketing-mix

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.

TASK 2

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.

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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 of people.

Segmented merchandising: Separate catalogues are prepared to fulfill the need of customer and offer products and facility basis on their interest. To segment the market several factor are considers like personal, demographic and culture factors.

Personalized merchandising: Reputed firm increase their revenue by understanding the user’s profile. Interactions, navigated site, Ratings & reviews are considered for enhance the sales.
Hilton Watford hotel, UK used Segment and Personalized merchandising techniques. It provides efficient services to their customers by increase interaction and communication with them. Reputed firm segment the market by focused on purchase frequency and understands customer buying behavior (Shah, nt.d). Hotel focuses on presenting customers as well as expands their market by use of advertisement media effectively. Establish hotel increase their sale and profit margin in significant manner by doing this way.

TASK 3

3.1 Impact of design and layout on customer spending

Hilton Watford hotel, UK offer world class services to their customers, celebrities and business leaders. Customer spend directly depend upon hotel design and layout. If establish hotel has beautiful interior and outside design, then it able to attracts customers and they will ready to pay more than if services above  satisfaction level. Location of city is center on Watford town and surrounded by hill station increase its beauty. It is best place to spend vacation and organize any meeting and private functions like marriage and conduct conference etc. Interior decoration of hotel is very beautiful, reception, cherished library that are enough to attract every class of people including business and royal class, government class people. Other facilities provides by hotel are Internet with Wi-Fi and video conferencing facility, Restaurant and Bar facility that offer various kinds of food and different category of bear, Entertain facility and  gaming zone facilities attract people to visit the hotel (Avail, 2013).

Hotel introduces new products facility and offers to attract every class of people. It adopt dynamic nature that motivate them to continuous improves in operations and better compete with other rivals. They offer discount, holiday offers, spa and special offers for government employees discount at weekend on their best prices to increase their branding and targeting more customers. Luxury class people and business class people attracted through design and layout facility offer by hotel. It provides better services them, they are ready for more spend. Customers attract through flexible business and discount economy.

3.2 Evaluation of Internal Merchandising of Hilton Watford hotel

Internal merchandising is used to increase revenue and grasp market opportunity. Collect proper information about target customers before create hotel's internal merchandising. It is done through electronic marquees, lobby posters, guest service directories and electronic marquees.

Cohesive merchandising plans include all guest contact areas and it comes in the form of brand name or positioning statement and logo that remained constant. All the merchandising materials are placed in excellent condition (Tesone, 2005). Table tent cards, menus and guest directories are laminated or placed inside acrylic. It securely tie up with marketing plan and offer various plans to attract different category of people like promote Friday's dinner special and weekend discount to government employees etc. Internal merchandising execute through consistency (logo, brand name and position statement), Condition (Table tent cards, menus and guest directories), Coordination (tie up with market plan) and Cost Effective (monitoring tasks and services which they offer).

Sales increase through lucrative design and layout of hotel. Interior decoration of organization, well trained staff, good infrastructure and serving facility offer by marketer attract customers towards products. Reputed hotel offered services like Gym, high speed internet access, parking facility; restaurant & bar facility, attractive discount policy, and event organize facility to create a center of attention of customer. It uses built-in promotional codes like the room coupons and the electronic marquee to track the effectiveness of other (Mifflin, 2004).

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3.3 Evaluation of promotion activities in different scenario at Hilton Watford hotel

Hotel used different activity in various situations to promote their brand image and increase market share. Mainly reputed hotel offer services to business class, middle class (Government employees) and loyal class customers which are describe as below:

Middle class people: In this class people are attract through hygienic foods and serve proper manner. Especially government employees are attracting through providing 40 % discount rate on their best price at weekend.  Other services like memberships, holiday offers, gym, spa offers prompt room service and beauty of room are magnetizing customers to visit the hotel. Restaurant of hotel and bar helps hotel to targeting common people and expand their business (Leadley and Forsyth, 2004).

Business class people: They are attracting through auditoriums, conference & meeting rooms with other facility like Internet, Wi-Fi and audio & video conferencing equipment etc.  To attract business class people reputed hotel use sending letters, emails, pamphlets and brochures techniques. Hotel offer business packages that contains breakfast and free local calls services.

Loyal class people: These kind of people are attracted through parking facility, cherish library, Fitness center, Hill station near hotel, accommodation room, spa facility, Restaurant & Bar, and event organize by hotel in which celebrity are invited. Telemarketing and personal contract are use to target customer. Service using coupons, competitions and contest introducing helps establish hotel to penetrate more loyal class of customers towards products. Hilton offer services to enjoy the cultural break or weekend break and discount offer at participating in Hampton (Johnson and Olsen , 2009).

TASK 4

4.1 Evaluation of personal selling techniques

Good interpersonal and communication skills are required in personal selling technique. Product and service knowledge are necessary to sell the product. Reputed hotel maintains relationship with customer and aware them about new discount policy & plans. For personal selling it is required that right employees choose at right place and trained them so their selling skills are improves that is beneficial for employees, customers and hotel also (Richter, 2012).

Hilton Watford hotel used different personal selling method which describes as follow:

  • Sales call: Day to day target is set by organization and achieves them in well planned manner.
  • Sales trip: It is introduce by organization to expand their business and increase awareness of products.
  • Telephone selling: Contact with customers by receives incoming call and placing outgoing calls regarding Hotel facilities. Tele caller are well trained to analyze customer's needs as quickly and give the answer him on the spot. Hotel is involved with community and cultural base events so large amount of people attract towards hotel and it would be beneficial for business (Jayawardena and Pantin , 2013.).
  • Hotel offers entertaining facility to customers like casino and cycling, tracking and gaming zone services to attract them towards hotel brand.

4.2 Influence of operation design on sales revenue

It is the responsibility of staffs to maximize performance. To reduce cost and increase efficiency organization should perform operation in effective manner.

  • HVAC system would be used by organization to save the energy and reduce cost. It use LED bulbs that helps them to save thousands of dollars electric bills.
  • Smart phones, tablets and social networking sites should be used to keep personally touch with customers. Hotel space should be used to organize parties, social events and business gatherings, in off session (Kapoor, 2011).  
  • Direct sales used by company to segments the customers and make position in competitive market. Reputed hotel formulate strategy plan and successful implement that plan to improves its business operation and achieve its target goals well planned manner. Manager of firm trained employees such that they have knowledge related to sales and operations functions so cost reduces and profit will be generated.
  • Marketing efforts are done effectively so they will support direct sales activity. Basis on product offer price are set so hotel are in position to better understand of the marketplace and reap market opportunities (Bowman and  Gatignon, 2010).

4.3 Key principle that are include in sales training programs

  • Candidate has complete knowledge about services that offer by hotel. Familiarity with products and proper knowledge require related to strengths and weakness of product which they offer to customers.
  • Introduce the training program for staff member of hotel in which teach them how to treat with middle and royal or celebrities class. Trained them to use social media and increase their awareness about products and technology (Hayes and Nenemeier, 2009).
  • Develop leadership qualities and groomed personality by motivating them.
  • Lead masterful rainmaking sales conversations with customers and they are expertise in their area. Rain maker are never afraid to learn and faced every kind of situation and consistent actions are take.
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CONCLUSION

Research report explored about the product and services offer by Hilton Watford hotel. Product mix and market segment are play important role for hotel to expand business and enhance their market share. The project report concluded that internal and external merchandisings are necessary for reputed hotel to attract large amount of customers towards product. Research project helps Hilton hotel to understand the requirement of product mix and key principle that include in sales training programs. 

REFERENCES

Books and Journals

  • Bowman,D. and  Gatignon, H., 2010. Market Response and Marketing Mix Models: Trends and Research Opportunities. Now Publishers Inc.
  • Cant, M. C. and van Heerden, C. H., 2005. Personal Selling. Juta and Company Ltd.
  • Hayes, K. D. and Nenemeier, D. J., 2009. Human Resources Management in the Hospitality Industry.John Wiley & Sons.
  • Ingram,T and et.al, 2007. Professional Selling: A Trust-Based Approach. Cengage Learning.
  • Jayawardena, C., McMillan, D., and Pantin,, P., 2013. Trends in the international hotel industry.
  • Johnson,, D., M., and  Olsen, M., 2009. Joy and disappointment in the hotel experience: managing relationship segments.
 
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