Table of Contents INTRODUCTION..........................................................................................................................1 TASK A...........................................................................................................................................1 1.2 Contribution of product mix to sales and profit....................................................................1 1.3 Contribution of market segment to maximise sales..............................................................2 TASK B...........................................................................................................................................3 2.1 Discussion of various factors affecting buyer behaviour.....................................................3 CONCLUSION................................................................................................................................4 REFERENCES...............................................................................................................................5
INTRODUCTION In current business world, the concept relating to getting more sales and maximising profit by attaining more and more number of customer is known as sales development and merchandising (Hayes and Nenemeier, 2019). Companies either selling product or providing services have a specific plan to increase the number of customer by targeting new market segment and developing advance features in product and services. In this report Ritz hotel is selected to better understand the concept of Sales development and merchandising. In this project, contribution of product mix and market segmentation to maximise sales and profit are discussed. Report also describe factors affecting buyer behaviour. TASK A 1.2 Contribution of product mix to sales and profit. One of the most luxurious hotel in the world is The Ritz-Carlton that offer supreme, memorable and unexpected experiences to each and every customer visiting from all around the world. The Hotel have the main aim to offer the fine professional and personal services in hospitality which can makes customer to enjoy the cultured atmosphere and warmth while their visit. Management of Ritz hotel is continuously trying to differentiate themselves from other hotelofferingthenumberofuniqueservices.TheRitz-Carltongivenspaciousrooms, comfortable accessories and private bath and they also continuously working to upgrade their
services by developing more comfort within room and catering services, environment and cheerful ambiance. The respective hotel is also adding attention towards widespread flourishing in public fields, banquet halls, meeting rooms, gourmet kitchens, spa treatments and other accessories such as pay-per-view car service, tour guide. Recently to meet the revolution of hospitality industry the Ritz-carlton is planning to move their services and offer Yacht facilities by 2020 (Koontz and Gibson, 2012). This is boost the sales of hotel because Yacht is capable to have 300 guests with around 150 sweet suites, private terrace and other several of luxury services. The hotel industry has innovated by Ritz hotel as they are providing luxurious quarters, pleasant spaces, personal baths and expansive flower arrangements in common areas, fine dining, cafes, spas, pool clubs, golf courses, dining rooms, meeting centres, Wi-Fi, health facilities, multi-room fridge, free meals service, pay-per-view car services, 24-hour front desk and travel guides. Total products and services are closely related with the needs and desire of people visiting in Hotel, because the offer goods can easily fulfil the requirements of customer. Ritz Carlton hotels are always looking forward to everything distinctive within their service and their customers have also enjoyed a distinctive spa experience that includes a special mix of local flavours and distinctive competition. In recent time with the increase of digital platform Ritz-Carlton have launched their app that enable visitors to make sure that reservation are available for rooms, halls and restaurants can request for valet services and through app customer can even check out at any time. The number of product and services is managed by the management of hotel in a certain way as to enable them to recognize and nourish the client's degree of willingness. This entire product mix of Ritz-carlton hotel is very much essential that support to increase the overall sales and profit because these services attract large number of visitors that have a direct impact on the overall profitability of Hotel. The most special service of Ritz-Carlton is that they plan to organise a 7-10-day journey through lovely places and their present hotel chain is a dream place for weddings as well as other festivities. 1.3 Contribution of market segment to maximise sales. Market segmentation indicates the hotel must concentrate on its potential customers that can buy high-value facilitiesthat directly aids to maximize sales and earn profits (Lea- Greenwood, 2010). Market segment is one of the core department in business that helps in grabbing information regarding various types of consumers and identifying their needs. Ritz is
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working in hotel industry ans uses strategies to identifying potential consumers for their business. This helps them in designing their products and services as per consumers requirements and help them to grab large market share. Ritz initiated segmentation of their consumers on the following basis- Psycho-graphic:In thissegmentationemphasisisprovidedby hotelRitzon the observation of their visiting consumers and asking them regarding their requirements for services offered. Asking expectation level of services before serving to consumers helps inprovidinggoodsservicesasperconsumersrequirements(Psycho-graphic segmentation,2019). This will also helps in enhancing image of hotel to consumers so that more and more visitors will come to comfort the services offered by Ritz-Carlton that helps to maximise the sales during specific time frame. Geographic:Culture of the consumers who are visiting to hotel Ritz is very important to be considered while providing them required services. When hotels treat visitors as per their culture a good image of hotel is created and helps in enhancing sales of the hotel Ritz in long run.It is important to segment an audience by region if Hotel want to advertise an advertisement to individuals in a particular area, like marketing services developed for that specific region. For example Ritz hotel provide special room that maintain warm temperature to the colder place so that people can enjoy, similarly they provide opposite services to hotter places. This would help to increase customer base in specific country so that sales for that period gets increased, thus resulting in rising overall profitability and popularity. Behavioural:Understanding the consumers behaviour that are visiting hotel Ritz will bring improvement in products and services offered to them. If the services are met as per desire and needs of the consumers this will have a positive and direct impact on sales of hotel Ritz. All these types of different segmentation will help management to plan various schemes according to targeted group.In present age group people mainly make booking through online site and official website, thus manager of Ritz hotel is required to update their portal and site on regular basis. This would make available of latest discount and additional services provided by Hotel for their customer so that they can easily make decision for pre booking all these efforts by Ritz organisation will help in increasing sales and profits(Link, 2012).
TASK B 2.1 Discussion of various factors affecting buyer behaviour. In present time each and every customer is valuable for business as they have a major impact on the profit margin of company. Customer are treated as the greatest part of business in hospitality industry as they can influence the profitability of Hotel because highly satisfied customer will become potential buyer of services. The buying behaviour of buyerimplies that customers make the decision process before making any purchase of the item or services offered by Hotel. There are number of factors that have a major impact on the buying decision of consumers. For example, in Ritz-carlton hotel customers have to make choices when buying any service in context to buy the service which provides them more fulfilment, satisfaction. Some of the major factors that affect the purchasing behaviour of customer that are as follows: Social factors:According to this factors it has a major impact on the purchasing decision of customer in direct of indirect way because they gets influenced by their relatives, family member, close friends. It is very common that different customer have different taste and preference andtheir purchasingbehaviour is also different (Gassen, 2014). For example an individual customer wants to buy a small economical bedroom in Ritz- Carlton, but due to influence of his/ her reference from its friends or relative individual will to buy luxurious and big room (Maier, 2012). Psychological factors:These variables affect the behaviour of the customer purchasing such as motivation, belief and practising. People who rent rooms in accordance with their requirements and wishes. Customer use to aspectfor foremost suit hotel in every manner that includes unique services, character and ethics. Thus costumer decision are influenced by the product line that have a major impact on the entire sales and profitability of Ritz- Carlton Hotel. Cultural factors:This suggests that cultural variables have a major affect on the customerpurchasingbehaviourandtheirdecision-makingmethod.Itmeansthat somehow the cultural factors like social class, culture values and subculture beliefs can not be neglected by Ritz-Carlton hotel. Customer from different culture, social class and attitude visit to hotel in order to get services that makes them highly satisfied. For example the brand tag line of Ritz-Carlton is“We are Ladies and Gentlemen serving
Ladies and Gentleman” that helps to create best suitable cultural environment for each and every customer respectively. Personal factors: It impacts an individual person purchasing behaviour, meaning that it involves various variables such as income level, sex, and age plays a crucial role in taking decisions. Several individuals will have distinct purchasing behaviours to acquire a service in Ritz Carlton Hotel (Nickson, 2013). Consumer behaviour influences the company as it support in determining the marketing strategies. Ritz hotel is demonstrating its consumers' food and accommodation facilities and it is crucial to understand what drives them to use the hotel's services. This proper analysis of every factors would support to deliver the best services to customer according to their needs, which would definitely increase total sales and grow profit. CONCLUSION From the above report it has been concluded that sales developing and merchandising helps in increasing revenue that is achieved by properly demonstrating or promoting services and products so that individuals purchase and hotels can maximize their revenues and make earnings. Throughout this study, the item and services offered by the Ritz-Carlton Hotel can be understand easily. It describes the main elements of hotel's services offering as well as the participation of product blend to make earnings. It also includes the various factors affecting the buyer's buying decision. It also involves the hotel's personal selling techniques to maximize revenues.
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REFERENCES Books and Journals: Hayes, K. D. and Nenemeier, D. J., 2019. Human Resources Management in the Hospitality Industry. John Wiley & Sons. Koontz, L. M. and Gibson, E. I., 2012. Mixed reality merchandising: bricks, clicks – and mix. Journal of Fashion Marketing and Management. 6(4). pp.381 – 395. Gassen, J., 2014. Causal inference in empirical archivalsocial factors.39(7). pp.535-544. Lea-Greenwood, G., 2010. Visual merchandising: a neglected area in UK fashion marketing? International Journal of Retail & Distribution Management. 26(8). pp.324 – 329. Link, C. K., 2012. Internal merchandising: creating revenue opportunities. Cornell Hotel and Restaurant Administration Quarterly. 30(3). pp. 48-57. Maier, T. A., 2012.International hotel revenue management: Web-performance effectiveness modelling – research comparative. 3 (2). pp.121 – 137. Nickson,D.,2013.HumanResourceManagementforHospitality,TourismandEvents. Routledge. Online Psycho-graphicsegmentation.2019.[Online]AvailableThrough: <https://clevertap.com/blog/psychographic-segmentation/>.