Marketing Strategy for Holiday Inn

This assignment examines the marketing strategies employed by Holiday Inn. It delves into market segmentation, analyzing target customer demographics and preferences. The assignment also explores Holiday Inn's product mix, considering its various offerings and components. Furthermore, it investigates the promotional mix utilized by Holiday Inn to reach its target audience.

SALES DEVELOPMENT
AND MERCHANDISISNG

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Evaluate key components of product...............................................................................1
1.2 Contribution of product mix to sales and profit of the company.....................................3
1.3 Analysing how market segmentation contributes to sales maximisation.........................4
TASK 2............................................................................................................................................6
2.1 Factors affecting buyer behaviour....................................................................................6
2.2 Assessing appropriate advertising media for sales development situations.....................8
2.3 Evaluating the role of external merchandising in maximising customer volumes...........8
TASK 3............................................................................................................................................9
3.1 Assessing how design layout might affect consumer spending.......................................9
3.2 Evaluating internal merchandising materials.................................................................11
3.3 Evaluating promotional activities for different situations..............................................12
TASK 4..........................................................................................................................................13
4.1 Analysing personal selling techniques...........................................................................13
4.2 Influence of operational design on sales revenue...........................................................14
4.3 Key principles that should be included in sales training programme.............................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
ILLUSTRATION INDEX
Illustration 1: Product components .................................................................................................2
Illustration 2: Market segmentation ................................................................................................4
Illustration 3: Buying behaviour model...........................................................................................6
Illustration 4: Buyer characteristics.................................................................................................7
Illustration 5: Promotional Mix ....................................................................................................12

INTRODUCTION
Sales development is the concept which focuses entirely on the front end of the sales
cycle (Pál, 2009). It is a well developed business strategy which specifically focuses on the
outbound logistics. The present study will focus on analysing and assessing different measures
adopted by the companies in order to enhance sales and development within the market. It will
analyse different strategies and methods adopted by the business to develop high and effective
sales perspectives. For analysing the same the report will closely research and analyse the
business operations of Holiday inn Hotel chain. This multinational brand of hotel has established
its brand image in more than 3400 location in the world. Unique services and recognised brand
image has helped the business in enhancing its market sales (Holiday Inn Amenities, 2016.). The
present report will analyse and understand different means and measures which have been
adopted by the business to develop effective sales within the market.
TASK 1
1.1 Evaluate key components of product
The concept of product is crucial and critical to be analysed while developing and
designing strategies for sale enhancement and development within the market. This helps in
creating recognition for the company within the economy. Holiday inn is a well established and
renowned brand of hotel chains operating effectively around the world. The core focus of the
business unit is to provide a relaxing and stress free environment. The organization has
developed large range of products and services for the consumers which includes
accommodation, lodging, food and beverages etc. The product concept plays a significant and
crucial role for business to grow and develop within the market. The significant components of
the product for Holiday Inn are:
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Illustration 1: Product components
(Source: Franco and Pereira, 2013)
 Core product: This layer of the product or service defined and associate with the basic
needs and demands of the buyers. Holiday Inn focuses on delivering quality services and
products to the consumers. This layer of the product helps the company in analysing the
basic accommodation needs of the buyers and thus focuses on managing products and
services to attain the same (Kotler and Armstrong, 2013). For example rooms with bed
and lights helps ion meeting the basic needs of accommodation. This component helps in
delivering services and meeting one time market demand. Actual product: This is yet another layer of the product helps in enhancing satisfaction
level for the users. In this highly competitive market consumers seek factors such as
quality, brand image, additional features etc. in the product. Holiday Inn has developed
the products range accordingly (Malhotra, 2008). The quality services, renowned brand
name, wide range of services etc. contributes towards the same. For example consumers
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are provided stress free living environment with quality room services, customised
consumer services, basic amenities such as TV, Breakfast facilities, technological
amenities etc. these helps in developing high level of satisfaction and additional market
demand within the economy.
 Augmented product: This component of the product consists of the extra and unique
services provided by the hotel which delivers additional value for the consumers. This
include a trained team of employees, effective facility layouts within the hotel immediate
and focused response for the consumer requests etc. all these factors has helped the
company in creating brand loyalty and trust within the consumers and helped in
enhancing market demand and repetitive demand as well (Poolton and et.al., 2006).
1.2 Contribution of product mix to sales and profit of the company
The contribution of product mix creates a direct and effective impact on the sales of the
company. It helps the business units in developing high and essential range of product services.
Product mix is defined as a range of products and services offered within the business unit in
order to enhance sales within the market. This highly helps the business in developing effective
brand image of the business (Rosenbloom and Dimitrova, 2011). Holiday Inn has developed an
effective range of products and services within the economy. It closely examines and analyses
the needs and demands of its guests and offer a wide range of services such as accommodation,
food, beverages, lodging etc. this has helped the business in creating high level of consumer
satisfaction.
Holiday inn focuses on enhancing its market share within the economy. It creates an
effective prospect of sales maximisation within the economy. The company has focused and
developed an effective product mix for the consumers which have helped in enhancing its
demand. Product mix of the organization is developed and designed by analysing changing
trends within the market (Ferrell, 2012). This has helped it in infusing innovative measures of
working. Moreover, the company has also developed effective measures of customizing the
service range in order to meet needs of its guests. The stated product range has helped Holiday
inn in developing systematic and attractive purchase options for the buyers. Hence, it can be
effectively analysed that well defined product mix of Holiday Inn has helped the business in
effectively understanding and delivering required services to its guests. Moreover, strategic
designing of the factor has helped it in creating a competitive edge within the market (Fillis,
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2011). Holiday Inn express is a relevant example for the same. Holiday Inn express is a
customised and effective option for travellers who seek fast, short-term and advanced hotel
services. Hence, it has helped the company in enhancing sales within the market.
1.3 Analysing how market segmentation contributes to sales maximisation
Market segmentation is the process of dividing a large market into small segment with
common consumer needs or demands. Dividing market with similar consumer needs and
characteristics helps the business units in designing and developing the designs and strategies for
sales maximisation easily. Holiday Inn at present is efficiently operating in more than 20
countries around the world. It has established its hotels at more than 3400 locations. The major
focus of the company is on enhancing the market share through delivering quality services to the
guests.
Illustration 2: Market segmentation
(Source: Segmentation, 2015)
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Market segmentation has helped the company in effectively understanding the needs and
demands of all the guests by segregating them on the basis of common characteristics. Holiday
Inn has segmented its market on the basis of geographic, demographic, psycho-graphic and
behavioural segments. This has helped the business in closely and clearly examining the needs
and demands of its guests. Geographic segmentation: Holiday Inn is operating globally thus geographic
segmentation has helped the business in analysing and evaluating the local needs and
preferences of the buyers. It designed and developed its strategies and process as per the
assessed demands (Baltes and Leibing, 2008). The change in services is dome
accordingly which helped the company in enhancing brand image and market demand. Demographic segmentation: Holiday Inn divides the vast consumer requests on the basis
on age, income, class, nationality etc. this has helped the company in developing and
designing its service range (Rao, 2004). For example free kids food strategy of the hotel
in K market has been designed for attracting young parents of country who seeks
accommodation and quality services within the market. Psycho-graphic segmentation:This segmentation criteria focuses on parting the market
demand on the basis of social class, benefits and usage factors. This has helped Holiday
Inn in developing effective service range for premium and normal packages. Moreover,
service range for family consumer is different (Richter, 2012). This has helped in
generating overall demand and satisfaction for the business.
 Behavioural segmentation: This segmentation criteria is based on usage, habits and
occasional factors. Holiday Inn develops its strategies accordingly thus creating effective
impact on market sales. For example in order to attract maximum guests in peak festive
season, the hotel designs special offers and promotional schemes to attract maximum
consumer flow.
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TASK 2
2.1 Factors affecting buyer behaviour
Illustration 3: Buying behaviour model
(Source: Scott, 2013)
Consumers are the core source of demand generation within the economy. Analysis of
their buying behaviour helps a company in effectively designing and developing product
strategies for attaining high success measures. Holiday Inn hotel is operating within the market
to closely analyse and evaluate the needs and demands of its buyers. This has helped the
company in designing and establishing its competitive strategies and business policies as well
(Al-turki, 2011). The stated model helps the company in effectively understanding and analysing
the buying behaviour of the consumers. The company effectively undertakes the market analysis
to understand the environmental factors which may impact buyer’s response.
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The individual response however is analysed by effectively understanding the consumer
characteristics by the hotel. As per the research analysis the major factors which develop buying
characteristics of individuals are cultural, social, personal and psychological. The organization
thus examines these factors to attain favourable buyer's response. Holiday Inn analyses cultural,
factors and design its service range accordingly (Oswald and Flouris, 2012.). The impact of
culture and social class is high on buyers. The social factor considers motivators such as
reference groups, family, roles and status etc. This has a high and influential impact on the
buyers' decisions. Holiday Inn thus develops promotional measures accordingly. In Addition to
this personal factors such as age, occupation, Lifestyles etc. also plays a significant role in
developing consumer perception for available products. Lastly psychological factors such as
motivation, learning etc. plays significant role in determining demand thus these are developed
as per consumer preferences in order to enhance sales for organisational services (Schuster and
Harris, 2014).
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Illustration 4: Buyer characteristics
(Source: Gray, 2010)

2.2 Assessing appropriate advertising media for sales development situations
Advertisement is a significant tool for promoting product and service within the market.
It helps the business unit in creating a wide and effective impact on the sales of product or
services globally. Analysing consumer behaviour helps Holiday Inn in effectively understanding
consumer needs and preferences (Trehan, 2007). Using advertisement media helps the company
in attracting mass audience from the global economy thus creating effective market demand.
Holiday inn uses different and creative advertisement measures in order to communicate with
large number of people. Advertisement media is implemented by the company for enhancing
brand recognition and developing market demands. Holiday Inn first evaluates its target audience
at different level and analyse their characteristics. The company then develop its advertisement
target to promote its services (Wacker and Lummus, 2012). On the basis of cost analysis the
organisation then plan its strategies for sales development.
Digital media is one of the most effective and successful method used for the same. Use
of online advertisement, social media promotion and online public relations has helped the
business unit in delivering positive and influential messages to the audience. The digital presence
of the company in form of social media page, website etc. has hoped in attaining high consumer
responses thus enhancing consumer relations (Saxena, 2009). Apart from this the stated platform
has helped the company to be an effective successful tool for rotating communication regarding
latest offers discounts and upcoming events in the hotels. This has helped in enhancing sales
widely. The use of digital media is an effective method of communication and advertisement
however it also enhances competition for the company as Holiday Inn has now to compete with
well established brands such as Hilton, Marriott etc. Hence well planned and developed
measures of advertisement has helped Holiday inn in establishing positive and favourable brand
image within the market.
2.3 Evaluating the role of external merchandising in maximising customer volumes
Mechanising is the concept of promoting goods and services within the market by
developing effective and positive attitude in the minds of people regarding goods and services of
the company. This concept is crucial and significant for the business to enhance their sales in the
economy. Holiday inn is a service sector unit and external merchandising plays an effective and
well managed role in developing high consumer volume (Salisbury, 2010). The organization has
developed and designed business strategies efficiently in order to enhance market sales.
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The organizational layout infrastructure of the company is well designed and developed
which has helped the consumers in developing a positive brand image for the business. Effective
parking space and well planned facility layout is yet another strategy that the cited firm has
applied in different locations of business. Moreover, the selection of location of hotel
establishment is also a significant factor considered for the same. Holiday inn focuses on
providing a stress free and relaxing accommodation facilities thus the company ensures effective
locational issues (Cavale, 2006). This has helped the hotel in creating a positive and ease for
approaching by the consumers. This factors has helped the company in attaining high consumer
satisfaction and loyalty within the market. Apart from this a team f well trained employees has
also effectively contributed in enhancing the brand image of the business for both local as well as
international consumers. The above stated factors help the company in developing a positive and
effective brand image of the company in minds of the consumers.
TASK 3
3.1 Assessing how design layout might affect consumer spending
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Illustration 5: Holiday Inn Entrance
(Source: Holiday Inn Amenities, 2016)

Hospitality industry is one of the fastest growing industry in the world. The industry
offers effective services design and layouts for its consumers for enhancing sales and
satisfaction. This helps the organizations in developing an effective brand image and gaining
increasing rates of representative sales from the buyers (Dutta, 2011). The role of design layout
is significant for the industry as it is one of the significant selling prospect for business. Well
designed and planned layout helps the company in enhancing services and creating high level of
consumer satisfactions.
Holiday Inn focuses on delivering effective service range and delivering a comfortable
and stress free experience to the guests. Design layout plays a significant role for the same. Well
designed and equipped lobby, well furnished rooms, effective physical layout, facility layout etc.
has wide impact on consumer satisfaction. These features help the business in enhancing service
level as well. Holiday Inn focuses on adopting innovative and advanced technologies to enhance
competitiveness of the firm (Greene, 2010). This has helped the company in developing its brand
image from motel to a full facility hotel. Apart from this effective design and management has
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Illustration 6: Internal layout of Holiday Inn
(Source: Holiday Inn Amenities, 2016)

helped it in delivering fast and effective services to consumers. In addition to this delivering
quality service demands the organisation in meeting standards of services and design layout
therefore Holiday Inn has effectively adhered all the standards of infrastructural design and
layout for attaining consumer satisfaction. Cleanliness and systematic arrangement of things are
other key factors that aids in influencing the spending of customers.
3.2 Evaluating internal merchandising materials
Holiday Inn is one of the well established ad renowned service provider of the hospitality
industry. The business unit delivers high street accommodation and food services to diverse
range of guests across the globe (The Definition of Merchandising Techniques, 2015.). The
individual hotel situated at different location is the crucial factor which contributes in developing
market sales. Internal merchandising plays a significant role in enhancing sales and developing
positive impact on the guests for the hotel and its services as well. Internal merchandising
technically refers to the arrangement through which ambiance of the company is enhanced and
developed thus creating a positive impact on the consumer minds (Lim, 2010). Effective market
analysis clearly represents that Holiday Inn is the largest chain of hotels providing full range of
services to its consumers. The internal ambiance if the hotel is well developed and designed in
order to create a positive impact on its guests.
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Illustration 7: Internal merchandise
(Source: Holiday Inn Amenities, 2016)

The designs and layout of the company is well developed. It uses effective display of
paintings and display products to develop positive brand image within the consumers (McKague
and Tinsley, 2012). The basic yet facilitating products of the business have helped the company
in developing positive impact in the market. The organization effectively focuses on making the
best and maximum utilization of space. The display furniture and materials carry the cultural
value of the location. Pleasant lighting and soothing colour combinations has helped the
company in developing a relaxing environment for the business. Apart from this the material of
products used in rooms are of standard quality and value (Rickards and Ritsert, 2011). Every
room is designed and developed as per the specific and base colour scheme which helps the hotel
in creating a unique brand identity for the guests. In addition to this the electronics range and
technical support provided to the guests is effective and advances which helps them in attaining
high value for money (Vries and Boonstra, 2012). Thus, internal merchandising materials help
the company in developing effective demand and sales for the company by developing positive
consumer perception for the hotel.
3.3 Evaluating promotional activities for different situations
Illustration 8: Promotional Mix
(Source: Varey, 2010)
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Promotion is one of the significant and most crucial tool of success and growth within the
economy. It helps the business in creating wide prospects for growth in this highly competitive
market. Promotion helps the business in developing brand recognition within the economy thus
enhancing market sales in this fierce rivalry market. Holiday Inn has developed and adopted a
well planned measures of promotional tools within the economy (Barone and DeCarlo, 2003).
The promotional strategies adopted by the company include: Advertisement:This promotional measures is the most costly yet most effective of all. It
helps in attracting mass media within the economy. He tools of advertisement that the
company implements in different kinds of situations involves television advertisement
(for enhancing market sales in diverse market), digital advertisement (for targeting young
consumers and developing product recognition) print media (for developing brand
identity) etc. all these tools helps the company in targeting diverse and vast consumer
base thus helps in generating high market demand (Caemmerer, 2009). Personal selling: This is effective tool used by the company in order to ensure
representative sales for the business. The source of this advertisement is human resource
and consumer partners of the business who ensures high promotion and brand loyalty
within the economy. Sale promotion: This means of advertisement is cost effective yet very influential for
developing high and effective market sales. This promotional strategy is implemented by
the business while peak tourist season and occasional time as well (Cooper, 2000). For
example family plans during Christmas season is the example for the same.
 Public relations: This is advanced and most influential means of sales enhancement
within the market. Holiday Inn develops effective and positive public relation by using
proper media. This helps in creating an indirect means of sales within the economy.
TASK 4
4.1 Analysing personal selling techniques
Personal selling technique is not new to the business world. This has been effectively
used and implemented by the organizations form ages and generations. It is a technique where
the business units promote its products and services through direct contact the buyers or potential
buyers within the market. The sales personnel for these techniques are effectively trained and
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developed (Franco and Pereira, 2013). They effectively analyse the needs of the buyers and
provide the customised information as per their need and requirement. For a hospitality industry
the stated technique is effective and highly influential for developing positive consumer relations
within the economy.
Holiday Inn uses the stated measures to develop positive organisational relations with its
consumers. The company effectively train its human resource to analyse the needs and
preferences of the buyers thus promoting services accordingly. It is a cost effective measure for
the firm which helps in creating optimum utilization of resources. Moreover, it has also been
analysed that the impact of personal selling remains for longer period of time on the minds of the
consumers (Gray, 2010). Thus, it can be effectively analysed that though the service range
targets a small set of buyers yet the impact on it is high and positive in developing brand loyalty
and sales maximisation for the products.
4.2 Influence of operational design on sales revenue
The operational design of the organization can be defined as the entire process and design
adopted by the company which helps in transforming input into valuable output. This design
plays a significant role in the hospitality industry and creates an effective impact on sales
enhancement. Holiday Inn focuses on providing valuable living experience by delivering
effective consumer services within the market. The operational design of the business is
segregated into three crucial segments which include services, delivery and relationship
management (Doole, 2008). All the three stated segments are critical for designing and
developing business growth prospects for the company. The service factor focuses on analysing
consumer needs, demands and market trends and designing and developing products and
operations of the business accordingly. For example the development of Holiday Inn Express is a
cvital example for the same.
Delivery factor focuses on managing and maintaining a well trained team of employees
who are able to deliver high quality services to the guests while effectively understand their
individual needs and perception. Well equipped physical and facility layout is also considered as
a significant factor for the same. Lastly Relationship management is yet another significant
factors which is considered and adopted by the business unit. This helps the company in ensuring
a healthy consumer relations and increasing demand within the market. Hence, it can be
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effectively concluded that Holiday Inn has developed and maintained an effective and well
managed operational design which has helped the company in generating high sales revenue.
4.3 Key principles that should be included in sales training programme
Service sector unit demand effective and well trained team of employees to create wide
impact on the growth of the business. Training and development is the integral part of hotel
industry as it helps the business in generating demand and delivering wide and up-skilled range
of services to the buyers (Vries and Boonstra, 2012). The sales training program is a crucial
factor for developing high market demand. The principles of developing effective sales training
program are developing continuous learning environment, motivating employees for
development and enhancing positive attitude for training.
Holiday Inn believes in the principle that every employee of the company is potential
sales executive for the company. By adopting the same policy the company develops and design
its sales training program. It ensures that regular on the job training is taken by the experienced
employees in order to train new people (Scott, 2013). Moreover, specialised workshops are
arranged as per the demands of employees to enhance competitive skills of professional such as
chefs, bakers managers etc. Moreover developing the communication and verbal skills is also a
critical sales factor thus employees are trained and developed for the same as well.
CONCLUSION
Rising competition in the market has created wide impact on growth prospects of the
business units. Companies are adopting unique and effective measures of sales and development
for enhancing profitability of the business. Organizations are developing unique and effective
strategies for developing effective brand image within the market. Aggressive market
competition has helped consumers in attaining wide range of options. They are able to switch
from one company to other due to effective availability vast substitutes in the economy. Business
units focus on developing effective strategies for developing a competitive edge within the
market. This has helped the organization in developing consumer loyalty thus enhancing sales
within the market. The above report reflected a clear and effective analysis of sales development
measures adopted by the business units and analyses the impact on the same on the
organizational performance. The case analysis of holiday Inn helped in effectively understanding
the significance of the same in the business context. Hence, from the above study it can be
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evaluated that the effective and well designed sales development strategies of the company has
helped in developing high growth measures for the firm.
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