Merchandising Strategies in Hospitality Industry

The assignment is focused on merchandising strategies in the hospitality industry, specifically in the context of a HILTON hotel. It highlights the significance of creating an attractive environment for customers and employees, emphasizing the role of interior designers and staff training. The report also touches upon the impact of customer attraction on business performance, referencing various studies and research papers on merchandising and retailing.

Sales Development and
Merchandising

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Key components of product..................................................................................................1
1.2 Range of contribution to sales and profit..............................................................................1
1.3 Market segmentation.............................................................................................................2
LO 2.................................................................................................................................................2
2.1 Factors affecting the buyer behavior.....................................................................................2
2.2 Appropriate advertising media..............................................................................................3
2.3 Role of external merchandising............................................................................................3
3.1 Design and layout may affect consumer...............................................................................4
LO 3.................................................................................................................................................4
3.2 Evaluate external merchandising..........................................................................................4
3.3 Promotional activities............................................................................................................4
LO 4.................................................................................................................................................5
4.1 Evaluate personal selling techniques....................................................................................5
4.2 Influenced the organizational designs...................................................................................5
4.3 Key principles.......................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
This report depends on significance of offers improvement and promoting strategies in
business and administrations activity level. This report will be focus on merchandising, which
refers to the variety of products available for sale and display of those products in such a way
that it stimulates interest and entices customers to make a purchase. It gives careful consideration
to friendliness and providing food, hairdressing and magnificence treatment, games and
recreation, and travel and tourism parts. This report depends on HILTON inn Hotel, which
depends on United Kingdom. This is help to understand the concept of internal and external
merchandising to improve level of turnover of organisation. Moreover, report will cover
potential activity to improve market condition. Further, it will cover marketing activity like
designing effective operational process and quality of services in market share.
LO 1 & LO 2
Covered in PPT
LO 3
3.2 Evaluate internal merchandising materials
Internal merchandising refers to creating revenue opportunities for filling more rooms, using
up-selling maximising profits and boosting incomes. This will help for increasing profitability
and productivity in marketplace (Hopkins and Hopkins 2017). Internal merchandising is focused
on attraction of guest like accommodation, facilities and services. There is various type of
internal merchandising which needs to be compelled in Hilton inn hotel to increase profits and
meet consumer needs. The material of internal merchandising comprises lobby posters,
electronic marquees and guest service directories.
 The hotel has specialised internal merchandising materials like visual equipment’s, fax
machines, printings services, video phone, messaging, printer, photocopying machine,
etc. The internal merchandising material of hotel Hilton inn is based on delivering quality
and luxurious living experience to its guest. Advancement in internal merchandising is
based on specialising services according needs of visitors.
 Luxurious convenience material of internal merchandise of hotel Hilton inn comprise
automated teller, electronic signage, luggage hold, safe deposit box, poll, spa, gym,
accessible guest rooms, business centres, registration desk, digital alarm clock,
emergency call button, lowered ramp, ramp entrance, chair table risers, etc. These are
1

additional premium materialistic requirement of guests which are incorporated by Hilton
hotel to accomplish consumer satisfaction.
 Electronic sales materials/ aid: Hilton inn hotel make of use of material like booklet and
brochure to gain attention of visitors. It is a substantial which is used business to increase
sales and create awareness. This organization is mainly used the electronic medium to
promote their service in marketplace. There are various type of tools and platforms
available in global world such as social media marketing by using smartphones etc. This
is the most common electronic sales materials that help for targeting the potential
consumers. Hilton hotel is used this medium by using smartphones, tablet, laptops to
connect with the people.
Advantages-
1. Electronic sales material in Hotel Hilton inn helps the firm in managing record of
business transactions.
2. Luxurious convenience material of internal merchandising helps the hotel in meeting
customer expectations which supports increase in sales.
Disadvantages-
1. Require internet access
2. Management of internal merchandising material in hotel requires staff which impacts cost
effectiveness of business as the firm is responsible for increasing payroll.
2

 Internal Signage- Hilton inn hotel is providing the service to their guest because it
helps for guest to managing their internal exteriors. It is basis of managing attraction
of visitors because it reflects directional sign which makes hotel experience of guest
simple and easy. Further internal signage depicts brand image. In this hotel derives
generic names to public areas such as breakfast, restaurant and lounge, bar, etc.
Hilton hotel is mainly used the local language for providing the details to the guest.
Advantages-
1. Internal signage promotes high visibility and helps the firm in reinforcing brand.
2. Internal signage helps the firm in conveying information to guest and seeking individual
attention.
Disadvantage-
1. Lot of uncertainty
 Electronic Signage- Electronic signage of Hilton inn hotel is digital signage for the
purpose of transformation disrupting the traditional model. In this focus of firm in on
digital advertising of its internal materials to gain attention of guest. The digital
signage is offering the real time information and personalized entertainment system in
rooms. This type of electronic digital signage platform is integrated with the media
player and PC. For Example- The integration of Samsung hospitality displays the
system in easily.
Advantages-
1. Easier for people to check the details of hotel.
2. Change promotions in real time.
Disadvantage-
1. Uncertainty in management process
Sales materials- There is the best sales material in the Hilton hotel business. Hotel website is
storing all the relevant information regarding the services and food services. This organization is
providing the best facilities to the customer to check the inside photos and property of hotels. It
helps for people to secure their booking information. The high-resolution images and interactive
floor is the best for hotel to increase the popularity in marketplace. Hotel's video is giving the
authenticity and reliability for guest.
3

Advantages-
1. Clear excess inventory
2. entice customers
Disadvantage-
1. change the perceptions of consumers
2. revenue limits
3. Alienating consumers
3.3 Promotional activities
Promotional activities refer the sales operations that are performed in the Hilton hotel. This
organization is used different type of promotions medium to share the discounting, coupons,
exchange, refund details to the guest. In this way, many people aware about the particular
product, service and give more preferences to the best services. In the Hilton hotel, there are
different ways to perform the activities in global world.
For Example- In Hilton hotel, Sales promotions can be directed at the consumers,
distribution channel members. It is used both medium like media and non-media marketing
communication. It includes loss leaders, display the point of purchase, rebated, price etc.
Manager is directly communicating with the guest to provide the details in proper manner.
Promotional activities can be determined as the process in which organizations focus on
providing information to customers about discounts and schemes, refunds and rebates, vouchers
and exchange offers. It includes advertising of organisation's product or services through various
medium of promotions, such as television, newspapers, radio, magazines, online medium like,
websites, social media, etc (Dewhirst, 2017). In accordance with arranged utilization of direct
commercialism, the Hilton inn Hotel ensures that guests are aware about services that are being
provided by the organization. Promotional techniques which are used by Hilton hotel to promote
its hospitality services are as follows:
Discounting schemes: It is sales as well as promotional strategy where the hotel offers
discounts on packages for limited period to attract consumers. This done by marketing team in
specific season of travelling. During specific periods such as weekends, company designates
discount program, where about 50% discounts are offered to customers. Discounting schemes by
Hotel Hilton comprise offers at premium facility hotel rooms.
4

Rebates: This another promotion mix strategy implied by Hilton hotel to boost sales where
firm promotes refund schemes if visitors are not satisfied with of the services during their stay
experience. This enables opportunity of gaining trust because it this firm challenges own
services.
Joint promotions: This another beneficial approach where Hilton hotel can market its
services with travel fir firm like with travelling schemes of Thomas Cook or TUI group. It is
another way of boosting sales with one travel trip. It is based on bulk booking which helps the
firm in managing cost effectiveness and sales hand in hand.
In the present market condition, there are different offers and discounts provides by the
companies for the fulfilment of customer needs and wants. It is essential thing for every
company to follow this procedure in order to achieve their goals and targets. The activities which
usually promote the products and services of that organization are visible for its target audience
because they are always advertised in the mass media. There are various strategies that
companies should consider the trade intermediary promotion as well as sales promotional
methods in order to increase sales and revenues (Keiser and Vandermar 2017).
LO 4
14.1 Evaluate personal selling techniques
Personal selling techniques are promotional methods which an individual or salesperson
uses to make a sale by their skills and abilities. It is a face to face selling techniques that
salesperson uses to persuade customers for buying a particular product or services (Nagyová and
Berčík 2017). Hilton employees uses 360-degree feedback for evaluating abilities required for
selling their hospitality services or products. There are certain set of techniques that can be
followed by the firm as personal selling technique:
Personal Selling techniques-
Verbal and nonverbal communication- It is needed for salesman to communicate with the
client in effective manner. They also have good communication skill to understand the need and
requirements. It enables to develop strong relationship with customers and making them
understand about the products and services that are delivered by the firm. Verbal communication
is based on face to face interaction with the customers. This communication is both ways such as
written and voice based. In Hilton, Salesperson has good verbal and nonverbal communication
5

skill to interact with the consumers. It helps for promoting and selling the product and service in
marketplace.
Up selling efforts-It is the sales technique where the seller induce the customer to
purchased the expensive product. This will help for organisation to increase the profitability in
marketplace. Up selling efforts helps for maximizing the profit rate. Hilton hotel is mainly used
this technique to increase the popularity of business process all over the world.
Understanding the need of customers- Understanding customers’ needs and wants: Before
taking any purchase decisions, there are certain set of expects that are individuals have. When
these requirements are identified, then it helps the business to take up initiative to meet them and
in satisfying them. In Hilton, manager is planning an effective strategy for identifying the need
of customers. They also giving the best service in hotel whereas customer can purchase the more
expensive product that would be beneficial for business growth and development.
Product knowledge- Sales person has more knowledge regarding about the good and
service. Product knowledge is necessary for business process to implement innovative idea in
growth and development. In this way, sales person easily solve the queries to the customer
related the product and services. It helps for clear all doubt and then it enables to develop
confidence among service users.
Linking selling and service- Hilton hotel is mainly linking the selling product and service
because it helps for optimizing the sales strategy for the business process. The service provider
can target the Hilton hotel to offer the services such as cleaning and maintenance, IT supports,
wholes-sale bedding and security etc. The salesperson has intimately known about the hotel to
increase the demand in global marketplace.
Encourage repeat business- It is main part of organisation to encourage their existing
enterprise in marketplace. This will help for promoting their existing business operations and
functions in marketplace. Hilton hotel is using the best approach for maintain the services in
effective manner. This hotel is following some important steps for encourage their existing
business in marketplace.
 Adding some innovative ideas in the existing product and service.
 Take feedback to the people
 Make them ambassadors
These are important steps that help for encouraging the business process across the world.
6

4.2 Influence of operational designs
Operational design of hotel are focused functional units of hotel like, human resource,
security, food service, housekeeping, finances and sales. The designing is done to make
appropriate accommodation setting and facilities of hotel. Operational design is a strategic
implementation and cognitive approach by staffs or management supported by their knowledge,
experience, skills, judgement and creativity. Used for developing campaigns, strategies and
operations to organize and management staff within organisation. Operational design of Hilton
improves operational performance and innovation within organisation. Employees are able to
increase their skills, knowledge and skills for better productivity and profitability. Efficiency of
staffs or team members are improved through creative and innovative ideas for their developing
plans or strategies for increasing sales revenue.
Operational designs of Hilton are formulated to promote positive and productive work
culture where the hospitality firm has focused on following factors:
Ergonomics: The designs helps the management in developing understanding over
employees working efficiency. This is planned to reduce error and encourage guest satisfaction.
Efficiency of staffs or team members are improved through creative and innovative ideas for
their developing plans or strategies for increasing sales revenue. The Ergonomics is based on
physiological and psychological principles with regard to hospitality services, processes, and
systems. Example of ergonomics in Hilton hotel is reflected in its work-friendly movable desks,
High-speed Internet access (Wi-Fi) which is basic necessity of guests in hotel, chair and desk-
level electrical, etc.
7

The main role of ergonomic is that rapidly growing the forms of indoor air quality,
accidental and injuries services, information and sign displays etc. This will help for
understanding the need and requirement of customer by using promotions. It is based on the
important role in the facilities to give healthy environment and also increase the productivity for
employees in organisation. Manager is also maintained the documentation, records of policy etc.
Workflow: It is deigned in shifts to manage consumer concerns. Working of one
employee continuously is hectic and impacts their performance. Therefore, the working hours are
divided according comfort of staff. This design helps in managing smooth flow of work among
employees which aid in managing concerns of guest at time. The basic role of workflow to
handle the employee working hour and create healthy environment so that they give more
preferences and concern about the services. In this way, employee can understand the need and
requirement of people to show the concern towards the guest.
Equipment’s: Equipment of Hotel Hilton are crucial part of hotel design because it helps
in managing systemic accommodation design of hotel services. The equipment’s of Hilton
comprise, smoothie machines, cutting boards, knifes, fridges, oil fryers, Chair and table risers,
etc. are common part of operational design of Hotel Hilton. These are the advanced services of
operation design which helps in delivering better customer services. The equipment is the
important part of Hilton hotel to provide the best quality of good and service to their customers.
They also support to provide the all equipment which are necessary for their comfort. Security is
also main concern about the guest because it is necessary for protecting their equal rights. In this
way. Guest will feel more comfortable and spending lot of money. This will help for increasing
the productivity and profitability of Hilton hotel in global world so that it is required for hotel to
always maintain their services according to the guest.
4.3 Key principles
Key principles which should be included in sales training programme are discussed below:
 Outline program objectives: The outline program objective is a crucial process which
ensures that Hilton hotel cannot be misrepresented by staff. Main objectives of training
program should be identified the skill and knowledge that help for organization to
maintain their selling product in proper manner. It is basically type of program to achieve
the specific goals and objectives of business process. This program will outline short term
and long-term goals on the basis of travellers in order to improve performance and
8

increase sales. In Hilton, Large sales team can use the team building exercises to drive
the positive energy and generating the results or outcomes. Every employee can creating
team to work together that help for achieving the goals and objectives. This program is
encouraging the people to focus towards the business process.
 Understanding consumers: It is important for the trainers to provide the accurate
information to the staff members so that they easily understand need and requirement. In
this way, employee easily identified the consumers habits, market trends, social habits,
travelling season, buying patterns etc. It is necessary for providing the service on the
basis of their choice. This training program will help for employee to develop their skill
and knowledge to maintain the business operations and functions. Manager always
motivate and influence the team members to develop their skill and understand the
requirement of guest.
 Own sales process– Hilton hotel is used the own sales process by using modern
technology. This will be useful for managing the business operations and functions. This
process will combine with all the necessary requirement such as inspection, financials,
personnel data, inventories and accounting data etc. this process is also implementing the
innovative ideas for increasing the sales and profitability in marketplace. Trainer will
provide the training to the employee whereas how they are planning an effective
strategies and targeting to potential consumers. Strategic initiatives to overcome the
complex situation and condition of business. It is becoming favourable for employee to
implement the ideas in execution process to maximize the profit rate in market.
 Determining selling methodology– Hilton hotel is mainly used the best approach and
methodology to sale the product and service in marketplace. It is also Implementing
selling methodology to increase the competitive advantage for business process. There
are various type of activities performed by sales department to handle the enterprise task
in proper manner. It is also carried the specific goals and objectives of hotel. In this
context, Sales team are needed to identify the process to manage the business operations
in proper manner. The employees will be know about the selling methodology that
implementing in the task. In this way, it helps for Hilton hotel to expand the business all
over the world.
9

 Right attributes of sales people– It is essential for salesperson to use the right
methodology to increase the business process. They also used the innovative ideas and
motivated attitude towards the business tasks. Right attribute always help for employee to
identify the demand of guest. There are some attributes required in the staff members
such as passionate, organised personable, self-motivated and time management ability
etc. These are important attribute which exist in the salesperson to manage the entire
business effectively and efficiently. It is also known as measurement criteria of
employees for handle the task. In Hilton hotel, employee has ability to provide the best
quality of services to the guest.
 Design preparation materials – The interior and exterior design preparation is needed
for manager to set all the facilities according to the guest. Many customers are attracted
towards their design and luxury things. It is needed for Hilton hotel to maintain service in
effective ways. In this hotel, manager always try to choose the best and attractive design
so that customer feel comfortable and free to spend lot of time in the hotel. This will help
for organisation to increase the profit rate and revenue in international marketplace.
Interior designer is furnished the best physical appearance. This is possible only when the
employee can adopt the training session in effective ways. They also developed their own
skill and knowledge.
CONCLUSION
From the above report is focus on principle motivate to improve number of customer is
with the help of attraction. If attraction level is high and good, that will be give direct impact on
customer. As per the above report HILTON Hotel is creating better knowingness among wide
range of made-to-order which prompt them to use welcome services of firm.
10

REFERENCES
Books and journals
Dewhirst, T., 2017. Package size matters: tobacco packaging, retail merchandising and its
influence on trial and impulse sales. Tobacco control, pp.tobaccocontrol-2017.
Hisano, A., 2017. Selling food in clear packages: The development of cellophane and the
expansion of self-service merchandising in the United States, 1920s–1950s. International
Journal of Food Design, 2(2), pp.153-166.
Hopkins, K.H. and Hopkins, C.D., 2017. Building sales people: Recommendations for the
Development of a Professional Sales Mentorship Program.
Israelsen, D. and Marina, K., 2017. Pharmacy merchandising in consumer behavior
system. Научный альманах стран Причерноморья, (1 (9)).
Keiser, S., Garner, M.B. and Vandermar, D., 2017. Beyond design: The synergy of apparel
product development. Bloomsbury Publishing USA.
Kwiatkowska, M., 2017. Merchandising in business activities of selected company (Doctoral
dissertation, Zakład Ekonomii).
Liao, C.Y., Wu, C.C., Hsu, Y.L. and Chen, Y.C., 2017, July. Analytics Solution for Omni-
Channel Merchandising. In International Conference on Universal Access in Human-
Computer Interaction (pp. 457-470). Springer, Cham.
Nagyová, Ľ., Horská, E. and Berčík, J., 2017. Application of neuromarketing in retailing and
merchandising. In Neuromarketing in food retailing (pp. 197-232). Wageningen
Academic Publishers.
Pushpa, A. and Rajakumar, C.S., 2017. Impact of In-Store Aesthetics and Ambience on
Consumer Impulse Buying Behavior. International Journal of Engineering and
Management Research (IJEMR), 7(3), pp.233-237.
Staritz, C., Morris, M. and Plank, L., 2017. Clothing Value Chains and Sub-Saharan Africa:
Global Exports, Regional Dynamics and Industrial Development Outcomes. Future
Fragmentation Processes, p.123.
11