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Sales development and merchandising
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TABLE OF CONTENTS INTRODUCTION..........................................................................................................................4 Task A............................................................................................................................................4 1.1.............................................................................................................................................. 4 1.2.............................................................................................................................................. 5 1.3.............................................................................................................................................. 7 Task B........................................................................................................................................... 8 2.1.............................................................................................................................................. 8 2.2.............................................................................................................................................. 9 2.3............................................................................................................................................10 Task C......................................................................................................................................... 11 3.1............................................................................................................................................11 3.2............................................................................................................................................12 3.3............................................................................................................................................13 Task D.........................................................................................................................................14 4.1............................................................................................................................................14 4.2............................................................................................................................................16 4.3............................................................................................................................................17 CONCLUSION............................................................................................................................18 REFERENCES............................................................................................................................ 19 BIBLIOGRAPHY.........................................................................................................................22 Instant Assignment Help Trusted Assignment provider in Australia.
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INTRODUCTION Increasing profitability through sales development is ultimate goal of any organization. Sales development refers to push merchandising activities in order to increase customer base in service industry. Here we have selected Hilton Hotel Corporation (HHC) for our study to understand the concept of internal and external merchandising in this organization which leads to increased turnover (Chang and et. al., 2011). Merchandising here refers to combination of various activities to promote services in the Hotel. The research attempts to identify components of products in services industry which influence sales of the same and also assess
significance
of
market
segmentation
for
conducting
various
promotional activities (Base, 2014). As marketing has become weapon to cut the competition, we also here have identified the promotional strategies adopted by the organization. It was found that by designing effective operational process, quality service can be rendered to the customers. Moreover, staff should be trained based on the key principles of training in hospitality industry.
Task A 1.1 Key components of a product: Philip Kotler has defined product as anything that could offer attention, acquisition, use and consumption to market which might satisfy consumers’ needs. Hilton hotel is into hospitality and service industry where it is providing physical and psychological satisfaction to its customers. The major elements identified for this corporation are described below
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Get Assignment Help Now with upto 50% OFF ❖ Accommodation: This hotel is providing accommodation facilities at various places of UK. It is providing wide range of accommodation packages like double your hhonors, weekend nights, leisure escapes, family fun package, military family rate etc. By selling rooms for accommodation it is getting maximum revenue. ❖ Amenities: Hilton hotel is operating its business worldwide and world’s most beautiful locations by providing natural amenities such as sea bathing, opportunities of trekking as well as artificial amenities like bars, cafes and other ancillary services. ❖ Attraction: It is principle motive of Hilton to provide attraction to customers by physical design and layout of the hotel and other decorations. Exterior designs of the hotel also augmented product which attract visitors more (Curry and et. al., 2001). ❖ Activities and facilities: This hotel is also indulged into entertainment activities and providing customer facilities like spa, laundry services, and banquet halls. ❖ Accessibilities: It is offering accessibility to the places of attraction by providing travelling and receiving facility for the visitors and customers. 1.2 Product mix is the combination and variety of products that are offered to the customers. A wide range of products are offered by Hilton hotel Corporation (HHC) which can be further bifurcated mainly three types of products Core products i.e. hotel rooms and other accommodation peripheral services, supporting products to obtain maximum sales from free newspaper and magazines and augmented product to give extra benefit such as relaxed
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Get Assignment Help Now with upto 50% OFF environment, high class rooms and restaurants (Suggett, 2014). Main business of Hilton is room service but it is offering extra products such as bars, smaller shops, laundry, travel desk etc. to increase its turnover. These extra benefits prompt customers to avail services. Sample on Sales development and merchandising For More Assignment Sample Contact us at: Email:help@instantassignmenthelp.com.au Toll-free no:+61 879 057 034
Product mix of Hilton is very attractive as it is providing hotel, resort services with some value addition which is important to generate higher sales. In a service industry product mix is the sum of all the physical and psychological services provided to the customers (Curry and et. al., 2001). Hilton group is operating in various parts of UK like England, Scotland, and Wales having many restaurants, resorts, hotels and apartment hotels which are offering wide range of packages for accommodation and ancillary services. A diversified mix of products has helped this organization to create a strong brand image among customers and thus increased the sales of the hotel by attracting more and more customers with attractive offerings and product mix.
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Get Assignment Help Now with upto 50% OFF 1.3 Market segmentation is done by dividing the market into small groups having some similar characteristics. HHC has segmented its market on following grounds: Geographic: Hilton’s segmentation strategy is based on location and local preferences. In London, it is targeting business class people and in Scotland it is segmenting it on the basis of tourist area (Klever, 2008). Psychographic: This division is based on the thinking, behaviour and understanding of the people. Customers having similar thinking, feeling will be grouped in one segment. For example travelers prefer luxury will be offered premium packages by segmenting that group. Benefit: Hilton group is segmenting on this basis by identifying benefits to the customers by specific offerings such as they are having different accommodation facility for Army family, couples etc (Chon, 2012). Demographic: It is done by dividing people having homogenous demographic characteristics like age, sex, income. HHC mainly target individuals who pursue luxury lifestyle (Ryu and Han, 2010). This is how Hilton segments its markets which help it to develop strategies for different segments. The services offered by Hilton will also differ segment to segment therefore it is essential for it to do market segmentation. Following points are benefits of segmentation to it. √ It helps the hotel to focus on the business by identifying the groups of same interest. √ By providing services to each group as per their expectation the entity can increase its competitiveness.
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Get Assignment Help Now with upto 50% OFF √ Better communication within the Hotel can be established (Oh and Pizam, 2008). √ Effective targeting can be done by proper segmentation. These benefits would ultimately increase the sales of Hilton group and this way organization can achieve maximum profitability and market share (Dontigney, 2014).
Task B 2.1 Consumer behaviour affects the organization because that determines the marketing strategies. Hilton hotel is proving accommodation and food services to its customers therefore it is important to understand what lead them to hire a room or avail the services of the hotel. Following points can better explain the factors affecting buyers’ behaviour. Internal factors:
It includes personal, social, physiological needs, their
perception and attitude. Customers have their specific needs, for example: A businessman will need a high class luxury room to conduct professional meeting with clients whereas family would buy a room which has ancillary facilities of laundry and vivacious room. Every individual has his/her own belief, perception which changes the behaviour of customers. These internal factors are based on the unique personality traits of individuals. External factors: external factors are those which are outside influences for changing customer behaviour such as cultural influences. While operating worldwide and providing services to both domestic and international customers Hilton has to create multi cultural environment because different people from different origins would have certain values which could change
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Get Assignment Help Now with upto 50% OFF their behaviour while availing the services. In the same way socioeconomic level of consumers, reference groups can change their attitude. Other than this price, designation, nature of service affects customers’ behaviour which is necessary to understand by HHC in order to give maximum satisfaction to the customers. Sample on Sales development and merchandising For More Assignment Sample Contact us at: Email:help@instantassignmenthelp.com.au Toll-free no:+61 879 057 034
2.2 Advertising media is the way, means or channel through which advertisement message can be conveyed to general public or target group. Hilton has many options available to advertise its services which could enhance sales for it (Ryu and Han, 2010). The most commonly used media are print media and broadcast media. Print media is cheap form of advertisement by which customers can be brought to the hotel to experience services which includes printing message, images and figures on paper, magazines, newspapers; newsletters etc.
direct mails through electronic
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Get Assignment Help Now with upto 50% OFF medium are considered as portable printing media. Premium business magazines might be effective among these modes of advertising because Hilton hotel is targeting high class people. Broadcast media is encompassed through television and radio. This would be expensive but most dominant way to advertise to mass media. Hilton hotel by advertising its unique selling proposition such as exterior designs, locality can produce maximum revenue by influencing consumers and travelers (Dogra, 2011). Guerilla marketing is another way also known as ambient media is also prominent way of advertising which is based on idea of marketing through creativity. Place and time are here the major elements. Advertising campaigns by HHC at right location by spreading WOM (Words of mouth) and social media would be cost effective channel. Moreover digital, outdoor and mobile are some other advertising media that can be used by the hotel in order to aware and create greater sales. (Chang and et. al., 2011). 2.3 External merchandising is widely used by the Hotels for promotional activities. It refers to the promotion of goods and services outside the territory of the organizations. Hilton hotel can use it to increase the volume of the customers. It can make outsiders and mass people aware about the business offerings by the company (Chon, 2012). External merchandizing is one of the contemporary modes of promoting the services by hotel industry. The information can be accessed by the prospects outside the home by various means like billboards, public furniture, posters, and displays. Hilton can promote itself by showing the attractive pictures of its rooms, designs
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Get Assignment Help Now with upto 50% OFF and layouts via these marketing methods. These visual pictures, videos and figures would increase the awareness of the products offered by it and also enhance the interest and curiosity level of the consumers. Billboards are one of the most efficient ways to visualize the ambiance of hotel through hoardings and displays fixed on the roadsides (Curry and et. al., 2001). Beside this sign twirlers can be hired to perform certain activities at public places to increase interest of the people. Vehicles such as traveler’s buses can be used for external merchandising so that tourists can be brought to the point of sale to increase the volume of the customers because buyers tend to consume those goods or avail those services with whom they are familiar.
Task C 3.1 Service quality perception by customers on hotel industry is based on two factors tangible and intangible. Tangible factors are concerned with the building design, facility layout, internal decoration, ambient conditions which have direct influence on buyer’s perception of quality. A unique physical setting lead to positive impression on the customer. Hilton hotel physical design appeals luxury. Its elegant exterior and interior look has made it preferred venue of customers for which customers would not hesitate to spend. (Antony and et. al, 2004). It has provided modern aesthetics with whimsical accents. Hotel has used fresh colors with contemporary finishes in its rooms which are appealing for business class and higher class people who like luxury environment (Sigala, 2003). HHC can influence its targeted consumers to spend more by advertising the Unique selling proposition in
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Get Assignment Help Now with upto 50% OFF terms of physical layout and room designs. These designs and exposure can tough their hearts and emotions which would increase urge of availing the service in this hotel. By experiencing quality life and world class decoration would attract premium customers and they would perceive their spending valued. 3.2 Internal merchandising refers to promotion of goods and services within the periphery of the organization. Taking this in the context of Hilton hotel this would be probably the most effective way of increasing the customer base (Enz, 2009). By this way effective communication can be made because customer can be targeted and focused in own premises thus actual massed can be conveyed by the hotel. The customers visiting the hotel can physically experience the quality of service along with it some internal merchandising materials can be very helpful such as cash jackets, printed tissues having message about value of the hotel. Target audience can be brought into captive situation by these activities. Stronger retention of indoor message has witnessed in hotels which improve the effectiveness and add creativity and innovation to the promotions. Hilton hotel can use number of activities under it like hanging photo frames, message on furniture (Sin and et. al. 2005). The hotel can bring benefits and quality standards used by it into the notice of customers which would affect their perception towards the organization. Internal merchandising avoids the ignorance and walk away behaviour of customers while watching the promotions from some other mode (Homburg and et. al., 2002). Traditional merchandising material were having some drawbacks too
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Get Assignment Help Now with upto 50% OFF like mute and walk away behaviour of buyers but it will probably hold the customers till the message is not conveyed effectively. Moreover they are inexpensive, capture audience and increase brand awareness (Kotler, 2008). Sample on Sales development and merchandising For More Assignment Sample Contact us at: Email:help@instantassignmenthelp.com.au Toll-free no:+61 879 057 034
3.3 Hilton hotel executes various elements of promotion mix which include sales promotion, advertising, personal selling and public relation (Oh and Pizam, 2008). Here brief description and effectiveness of the same is given under highlighted points. √ Advertising: Advertisement is paid form of promotion which is sponsored. Hilton is using this way by broadcasting the message through selected television channels to mass public. It is very effective way of communication which attract people the most (Sin and et. al. 2005). √ Sales promotion: HHC is indulged into it by allowing discount vouchers on official website and promoting by Hhonors points. These activities
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Get Assignment Help Now with upto 50% OFF are influencing to avail the services on repetitive basis but these would give it short term profits. Sales promotion for the organization would not long period (Reid and Bojanic, 2009). √ Personal selling: It is the way of contacting potential customers by various ways such as direct mail, approaching through phone, personal meeting to interact with buyer and identify the doubts and perception through face to face communication. Hilton Hotel Corporation can use this element to handle premium customers (Dudovskiy, 2014). √ Public relation: This mode of promotion is adopted by all the organization disregarding their nature of business. By involving in some good cause or maintain relations with customers, employees and stakeholders to promote the business activities Hilton group is engaged in public relation. It does so by newsletter for maintain contacts (Sigala, 2003).
Task D 4.1 Personal selling is an important element of promotion mix which refers to selling through face to face interaction with the customers and encourages, promotes and influences customer to buy the product (Chon, 2012). In service industry context it aims to provide service quality information to buyer to enhance the turnover. Hilton hotel can use this activity for selling rooms to travel and event Management Company who bring customers for it on regular basis. Following are some of the main techniques used by the company.
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Description By visiting various organizations, traders, merchants, clubs that plan tours and outside stays, the hotel can give
Visiting the customers
presentations about the company offering. Mostly this is done
under
B2B
situations
in
which
the
travel
management agencies further sell the rooms to their customers (Min and et. al., 2002). Telephone selling is done by using mobile phones. It can be done in two ways receiving the calls for customers Phone calls
and placing outgoing calls to prospects. Hilton hotel has its own call center for this purpose which enables executives
to
book
rooms,
give
information
about
services etc (Leadley and Forsyth, 2004). Internet sales are the contemporary mode of selling in Internet sales
service
industry.
HHC
offers
mass
public
to
take
information about rooms and services from the website and they can also book the room from official website. Hotels organize new year parties in their periphery at low or no prices which is expensive but at initial level
Entertaining
effective mode of personal selling. Hilton is expanding its business thus this would be effective way to make people experience of the services of the entity (Yoo and et. al., 2011).
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(Enz, 2009). 4.2 Operation design is the design of the process which includes the activities performed by the organization to render services to customers. In service industry it is impossible to separate process of business and the design (Ferrell and Hartline, 2012). For example Hilton is offering rooms for staying of the customers which is the part of its process whereas they stay and avail service within the periphery that cannot be separated from the process. The well defined process would cut the extra cost and provide best quality service to the customers for maximum sales generation. The process designers of the HHC should consider quality, reliability, safety; speedy factors while designing the process outline (Min and et. al., 2002). It is made in such a way that could provide greater revenue to the hotel. The designing activity itself is a process which starts from transforming technical, market and time resources and finishes on providing quality service to the buyers. Hilton should follow the below process while designing the operations. ➢ Mapping: It involves identification of activities and deciding the flow of inputs. ➢ Performance: Standards of performance must be set such as quality, cost, flexibility and speed. ➢ Execution: This includes implementing the prepared design. ➢ Follow up: Taking feedback from the customers, identifying service quality gaps and reframing the process (Homburg and et. al., 2002).
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Get Assignment Help Now with upto 50% OFF 4.3 Quality and performance of service design considerably depends upon the service staff and sales force. Employee group impacts the service outcome tremendously and consequently the productivity. Being a part of such a big organization which is having its operations worldwide, the staff must be well trained (Enz, 2009). Following are the key principles of training program. Sample on Sales development and merchandising For More Assignment Sample Contact us at: Email:help@instantassignmenthelp.com.au Toll-free no:+61 879 057 034
➢ Individuality: Each member of the staff should be valued. Training to be provided based on the principle of individuality. The employees in the hotel should be capable of attending customers on their own and they should not be dependent on each other. Therefore they should be trained individually (Leadley and Forsyth, 2004). ➢ Specificity: They should be trained specifically. The trainer must be clear about the subject material that to be given to the staff. Particular topics to be covered in the training such as solving customers’ query,
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Get Assignment Help Now with upto 50% OFF their behaviour so that standardization can be bought while delivering the service (Juon and et. al., 2011). ➢ Practicality: Employees there must be trained on practical basis. Hilton hotel is having an elegant reputation (Yoo and et. al., 2011). It target business class people that should be served with high quality. Employees should be confronted with practical examples of human behaviour, serving and other services so that they can execute it without any mistake.
CONCLUSION Extensive reviews of literature and marketing theories have concluded the basics of merchandising and sales development in Hotel industry. It was identified that in hotel sector ancillary services is key part of core product which influence the sales. However, it is also impacted by market segmentation strategy and appropriate choice of advertising the product (Maxwell and Lyle, 2002). Call center facility and customer segmentation were found to be the two major elements contributed to the sales of HHC. It can be concluded that proper process design, selecting appropriate media and training staff effectively would help the organization to increase the revenue (Antony and et. al., 2004).
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REFERENCES
Journal Antony, J. and et. al., 2004. Evaluating service quality in a UK hotel chain: a case study. International Journal of Contemporary Hospitality Management, 16(6). pp.380-384. Chang, Y. C. and et. al., 2011. A Case Study on the Business Performance Management Of Hilton Hotels Corp. International Business Research, 4(2). 213-218. Curry, B. and et. al., 2001. The Kohonen self‐organizing map: an application to the study of strategic groups in the UK hotel industry. Expert systems, 18(1). pp.19-31. Homburg, C. and et. al., 2002. Service orientation of a retailer’s business strategy: dimensions, antecedents, and performance outcomes. Journal of Marketing, 66(4). pp.86-101. Maxwell, G. and Lyle, G., 2002. Strategic HRM and business performance in the Hilton Group. International Journal of Contemporary Hospitality Management, 14(5). pp.251 – 252. Min, H. and et. al., 2002. Dynamic benchmarking of hotel service quality. Journal of Services Marketing, 16(4). pp.302 – 32. Ryu, K. and Han, H., 2010. Influence of the quality of food, service, and physical environment on customer satisfaction and behavioral intention in quick-casual restaurants: Moderating role of perceived price. Journal of Hospitality & Tourism Research, 34(3). pp.310-329. Sigala, M., 2003. The information and communication technologies productivity impact on the UK hotel sector. International Journal of Operations & Production Management, 23(10). pp.1224-1245. Sin, L. Y. and et. al. 2005. An analysis of the relationship between market orientation and business performance in the hotel industry. International Journal of Hospitality Management, 24(4). pp.555-577. Yoo, M. and et. al., 2011. Hospitality marketing research from 2000 to 2009: Topics, methods, and trends, International Journal of Contemporary Hospitality Management, 23(4). pp.517 – 532. Instant Assignment Help Trusted Assignment provider in Australia.
Get Assignment Help Now with upto 50% OFF Books Chon. S. K., 2012. The Growth Strategies of Hotel Chains: Best Business Practices by Leading Companies. Routledge. Enz. A. C., 2009. Hospitality Strategic Management: Concepts and Cases. John Wiley and Sons. Ferrell, C. O. and Hartline, M., 2012. Marketing Strategy. Cengage Learning. Juon, C. and et. al., 2011. Internet Marketing Start to Finish: Drive measurable, repeatable online sales with search marketing, usability, CRM, and analytics. Que Publishing. Klever, A., 2008. Behavioural Targeting - An Online Analysis for Efficient Media Planning? Diplom.de. Kotler, P., 2008. Marketing For Hospitality and Tourism, 4/E. Pearson Education India. Leadley, P. and Forsyth p., 2004. Marketing: Essential Principles, New Realities. Kogan Page Publishers. Oh, H. and Pizam, A., 2008. Handbook of Hospitality Marketing Management. Elsevier. Reid, D. R. and Bojanic, C. D., 2009. Hospitality Marketing Management. John Wiley and Sons. Online Base, C., 2014. The Definition of Merchandising Techniques. [Online]. Available at: <http://smallbusiness.chron.com/definition-merchandisingtechniques-18341.html>. [Accessed on July 1st, 2014]. Dogra, A., 2011. Outdoor Advertising Techniques. [Online]. Available at: < http://www.buzzle.com/articles/outdoor-advertising-techniques.html>. [Accessed on July 1st, 2014]. Dontigney, E., 2014. The Advantages of Marketing Segmentation. [Online]. Available at: < http://smallbusiness.chron.com/advantages-marketingsegmentation-67156.html>. [Accessed on July 1st, 2014]. Instant Assignment Help Trusted Assignment provider in Australia.
Get Assignment Help Now with upto 50% OFF Dudovskiy, J., 2013. Hilton Hotels Marketing Mix. [Online]. Available at:< http://research-methodology.net/hilton-hotels-marketing-mix/ >. st [Accessed on July 1 , 2014]. Suggett, P., 2014. Different Types of Advertising Methods. [Online]. Available at: <http://advertising.about.com/od/advertisingprojects/a/Different-TypesOf-Advertising Methods.htm>. [Accessed on July 1st, 2014].
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BIBLIOGRAPHY
< http://www.hiltonworldwide.com/ > <http://yourbusiness.azcentral.com/advantages-marketing-segmentation2858.html> <https://www.boundless.com/marketing/consumer-marketing/marketsegmentation/the-importance-of-market-segmentation/> <http://www.microsoft.com/india/casestudies/windows-xp-embedded/hiltonhotels-corporation/hilton-hotels-slashes-call-center-costs-with-work-at-homeprogram/4000002835> <http://www.hotelmule.com/forum/viewthread.php?tid=443> <http://www.knowthis.com/types-of-advertising-media> <http://media.about.com/od/brandbuilding/a/6-Types-Of-MediaAdvertising.htm> <http://yourbusiness.azcentral.com/external-advertising-12232.html> <http://www2.unwto.org/agora/study-effects-factors-physical-environmenthotels-customers-perceptions-service-quality-and-lo>. <http://www.inc.com/encyclopedia/facility-layout-and-design.html>. <http://www.gorocketdog.com/why-is-indoor-advertising-so-effective/>.
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Get Assignment Help Now with upto 50% OFF < http://smallwarsjournal.com/blog/operational-design-process-and-securityforce-assistance>.
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