Enhancing Business Scope through Sales Planning and Operational Activities

To maximize profits and increase business sustainability in the market, effective sales planning and operational activities are crucial. The report highlights that Ritz Carlton needs to consider external factors while operating in international markets. Additionally, participating in trade fairs and exhibitions can prove beneficial for promoting their brand image and products/services. Defining the role of an export team is also essential for global success. Overall, effective sales planning is vital for smooth business operations.

Sales Planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
1.3................................................................................................................................................3
LO 2.................................................................................................................................................3
LO 3.................................................................................................................................................4
3.1................................................................................................................................................4
3.2................................................................................................................................................4
3.3................................................................................................................................................5
3.4................................................................................................................................................5
3.5................................................................................................................................................5
LO 4.................................................................................................................................................6
4.1................................................................................................................................................6
4.2................................................................................................................................................7
4.3................................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Sales planning and operations refer to an integrated business process through which all
organizational functions get collaborated. Way in which sales turnover and profitability can be
increased is decided with the help of effective sales and operation planning. If it is done in an
effectual manner, ascertaining optimum level of manufacturing output becomes easy that
ultimately leads to create a competitive edge of company over others in the marketplace
(Noonan, 2010). In the present report, Ritz Carlton has been selected that is a luxury hotel chain
dealing in hospitality and tourism industry. With reference to the chosen firm, there will be
discussion on role of personal selling within overall marketing strategy. Also, principles of
selling process to a product or service of organisation will be highlighted along with the role and
objectives of sales management. Apart from that, sales activities for a product or service will be
planned in the report with respect to Ritz Carlton.
LO 1
1.1
Personal selling is an important part of promotion that plays a significant role in
increasing the sales turnover of organisation. There are many alternatives available which are
included in the process of personal selling in order to promote the products and services. Most
common among them are like sales training and incentive programs for sales person as well as
presentation and meetings based on sales. In addition to this, personal selling also involves
samples and telemarketing through which sales objectives of the firm are achieved (Wacker and
Lummus, 2012). As Ritz Carlton is dealing in both; tourism and hospitality business, its sales
team needs to personally communicate with the customers so that their queries can be resolved.
Through this, organisation gains details about the customer’s needs and preferences that helps in
formulating marketing strategies accordingly for selling the products and services. Personal
selling helps in influencing the buyers towards advertisement and publicity. Information that is
shown in the ad given by Ritz Carlton is demonstrated practically by their sales people in
personal selling method to the potential customers (Marketing - Promotion Strategy, 2013).
Therefore, it can be said that sales promotion tools become more effective when sales people
provide personal guidance to the target audience regarding the same. In this way, it can be said
that personal selling highly supports promotion mix of the products and services of Ritz Carlton
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by making customers understand the information of products and services that is given by
different promotional tools like advertisement.
1.2
Buyer behaviour to make purchase decision depends on different needs or situations as
well as it highly gets prejudiced with external factors. For example: In Ritz Carlton, the process
starts when a customer desires to visit a place for either spending holidays or his leisure time. For
this purpose, individual searches for different hospitality and tourism firms in order to select the
one that can satisfy his needs. In such case, when Ritz Carlton is selected, it states that among all
available alternatives, customers found it the best option services of which he can avail (Yu,
Ramanathan and Nath, 2014). Thus, in this way, customers of Ritz Carlton make their decisions
with regard to purchase its products and services. Buyer behaviour and their decision making can
be compared in the following steps:
Figure 1: Steps of buyer purchase decision making
 Determining the need – It is the first and foremost step where initially the need of
customer arises like whether he wants to visit some place or require some good food.
 Gathering information – After assessing the need, individuals gathers information related
to same which can be understood like; in case if he wants to spend his holidays
somewhere, he will search that what all places are there where he can go (5 Stages of
consumer buying decision process, 2016).
 Evaluating different alternatives – It is the next step where all available alternatives are
evaluated by the customer. Here, he searches for the destination to visit, accommodation
and restaurant facility as per his preference.
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Determining the need
Gathering information
Evaluating different alternatives
Purchase decision
Post-purchase evaluation

 Purchase decision – Later, after evaluating all alternatives, one which suits best with the
choice and preferences of customer is selected by him.
 Post-purchase evaluation – In this stage, it is being analysed that whether the customer is
satisfied with the availed services or not. Ritz Carlton take proper feedback from the
people who have availed their services so as to assess their satisfaction level (Oliva and
Watson, 2011).
The above steps have shown that buyer behaviour in every stage of making purchase
decision is different. Similarly, in case of Ritz Carlton, as per the stage on which customers fall,
they would behave accordingly.
1.3
In Ritz Carlton, sales team plays a significant role making the marketing strategy
successful and attaining set targets from the same in an effectual manner. People in this team are
responsible for gaining information about the market by analysing the needs and demands of
target customers. With the help of this, they develop the concept of new product if they feel that
there is need of the same and business will earn profit from this. They influence individuals for
making them ready to purchase the particular set of product (Thomé and et.al., 2012). Along
with that, as they are the people who directly come in contact with customers so, they act as the
mediator between Ritz Carlton and target audience. Through their communication, effective and
healthy relations are maintained in between the firm and market. Apart from that, they address
the issues and grievances of customers so as to keep them satisfied. As per the marketing
strategy, this department develops the sales lead and make efforts to maximise the profits by
increasing sales (Márcio Tavares Thomé and et.al., 2012). Offering necessary information to
clients and gathering their feedback is one of the important responsibilities of sales team of Ritz
Carlton. It makes the marketing strategy successful as ultimate aim of cited organisation is to
keep target customers high satisfied with the offered products and services.
LO 2
Enclosed in PowerPoint Presentation
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LO 3
3.1
In Ritz Carlton, sales strategies are always formulated with keeping in mind the ultimate
organizational goals. In the present scenario, instead of focusing on personal selling, to grab
higher market share, management of Ritz-Carlton can make use of internet marketing. With the
help of this, customer base will be increased as well. In addition to this, social websites such as
Facebook and Twitter are also being used by maximum hotels now-a-days. Through this, within
short duration, Ritz Carlton can grab the attention of huge audience. Also, it is a cost effective
method to promote the products and services. Thus, sales can be increased with the use of these
strategies (Islam, 2013). Similarly, there is one more way by which sale of products and services
of Ritz Carlton can be maximized. This is advertising the special offers with focusing on
advanced and differentiated characteristics that will improve the brand image of products offered
by organization like luxury service at low price as compared to other rivalry firms. Apart from
that, advertisement is needed to have a clear appeal for sales like; offer is limited for 5 days only,
so book your trip as soon as possible. This sales strategy would prove to be highly helpful in
attaining the sales objectives of firm, that is, increased profits and high turnover (Yoo and
Kitterlin, 2013).
3.2
Like every organization, Ritz Carlton also has a significant importance of recruitment and
selection process. It is because; being one of the leading brands, to have highly skilled, efficient,
knowledgeable and capable employees with high expertise is needed. Thus, while recruiting and
selecting the members of sales team, proves is done with due consideration on all factors that are
required to make the team effective. Apart from that, for other departments also, process is done
in a systematic and effectual manner so as to hire right people at the suitable place (Zanjani and
Nourelfath, 2014). It proves to be highly helpful in reducing the additional expenses of Ritz
Carlton that are associated with attrition rate of employees which ultimately shows a string brand
image of firm in the market. In this cited firm, HR department prepares job description and
person specification in a proper way so as to hire people with matching all states requirements
for respective positions. It recruits people from both internal and external sources with using
methods like interview and tests. Overall, it can be said that recruitment and selection process is
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important in Ritz-Carlton so gain a competitive edge over others (Dewsnap and Jobber, 2012). If
it is done effectually, this will lead to carry out all business activities in a smooth way and will
contribute towards the attainment of set targets of hotel.
3.3
For effective management of sales in Ritz Carlton, management is required to keep the
sales team highly motivated for which it uses Maslow’s Hierarchy of needs theory. This helps in
assessing the level of need to which an employee falls and satisfying the same accordingly.
When the employees are satisfied and motivated, they contribute efficient efforts in the
attainment of common goal of organisation. On the other hand, hotel also gives due emphasis on
paying attractive remuneration to the employees as it makes them feel that their efforts are being
valued and recognised (Kennedy and Avila, 2013). Similarly, Ritz Carlton provides effective
training sessions to the staff in order to keep their knowledge updated and enhance their skills
and abilities so that they can perform their assigned tasks effectually. These efforts made by the
firm ultimately lead to effective management of sales and in turn results in increasing profits.
3.4
The most important and core function of any organization is sales management. It helps
in organizing the sales activity as well as sales output effectually. Here, sales officer or
supervisors have the main roles as they set targets for rest of the team by focusing on particular
services, customer type as well area. Accordingly, sales members are delegated with their
specific responsibilities. Apart from that, journey planning is also formulated in sales meeting. In
this, roles and responsibilities along with the areas covered are discussed. Sales management
team of cited organization also performs control sales output in which sales budget is prepared
(Adamczak, Domański and Cyplik, 2013). This budget serves as a controlling tool with the help
of which performance is reviewed after regular intervals. It helps in assessing the gap between
actual and expected outcome on the basis of same, in case if any deviation is found, management
provides set development plan so that sales team can take corrective actions and become capable
to achieve the targets.
3.5
Database management is one of the significant aspects of Ritz Carlton with the help of
which business activities can be effectively managed. Through this, detailed information can be
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stored with respect to management of workforce. In the cited organisation, data related to
potential visitors as well as consumers is also kept as it proves to be helpful for gaining feedback
from them at the same time when they are availing services (Ambrose, 2014). Database
management plays a vital role in building a healthy and strong relationship with customers as it
increases their trust and loyalty towards Ritz Carlton. Thus, it serves as an effective means that
leads to repeat purchase. It depicts that database management is an imperative source of
information as well as creates incremental business that helps in the growth and development of
Ritz-Carlton. Apart from that, database building demands experts from the IT department of
organisation to be participated so as to deal it in the required manner and to avoid any kind of
risk (Noonan, 2010). Also, data must be updated time to time and stored under strict security as it
will lead to help business in running in a smooth way.
LO 4
4.1
With respect to the service of accommodation provided by Ritz Carlton, sales plan is
shown as below:
 Setting objective – Behind this sales plan, major objective of cited organisation is to
increase the sales and profits of business.
 Product/service description – Here, the offer is provided by firm that there will be 40%
discount on accommodation facility (room with luxury amenities) along with the free
breakfast (specific items).
 Deciding sales channels – Online booking and direct selling will be available for this
offer. However, for direct selling, discount is only 25% (Wacker and Lummus, 2012).
 Positioning strategy – For positioning, main emphasis will be given on affordable price
and luxury service that will be communicated on internet or television.
 Price and product availability – The offer will be given for 20 days only as well as
cannot be availed on the spot as pre-booking will be required.
 Sales team and customer attraction – Consumers will be approached by the sales team
through electronic mode. Main role of sales team will be to gather maximum customers.
 Organising training sessions – In order to have successful results, sales team will be
trained by the management of Ritz Carlton so that they can perform effectually (Yu,
Ramanathan and Nath, 2014).
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 Rewarding and providing benefits to sales team – When the goals will be attained and
sales team will perform in the desired manner, hotel will give them rewards as per their
performance.
4.2
In order to increase the scope of business, Ritz Carlton can gain many opportunities by
which it can sale on international level. For the same, agents play a significant role as they are
the people who communicate with potential customers and inform them about products and
services of organisation so that they can be persuaded to take purchase decision. Along with that,
hotel can also appoint some agents in other nations who will bring customers from there and
increase the profits of business along with enhancing its scope (Oliva and Watson, 2011).
Through providing effective training to international agents who will communicate with
prospects over there, their skills can be improved by which they would effectually deal with
them and bring more clients to business. This will increase the sales of Ritz Carlton at global
level. Furthermore, use of ICT techniques (information and communication technology) like
social media, e-mails, internet, video calling, etc., effective communication can be made with
international sales team that will help the firm to increase sales by sharing their plans with the
team (Marketing - Promotion Strategy, 2013).
4.3
Through organizing trade fair and exhibition, various opportunities can be grabbed by
Ritz Carlton that are available in the market. As major aim of firm is to increase its customer
base and gain competitive edge over others, corporation will participate in different exhibitions
in which profile of audience will be prepared. This strategy proves to be helpful for increasing
goodwill at international level (Thomé and et.al., 2012). For instance: if Ritz-Carlton will
participate in an exhibition that is organized in UK, it will put a huge impact on the brand image
of firm as customers from that nation will get attracted towards organization as well. On the
other hand, trade fair also plays a crucial role for Ritz-Carlton as with the help of this, many cost
effective sources of finance can be approached along with suppliers from different nations who
may provide high quality raw material at comparatively lower price. At the same time, contacts
with other related parties can also be done that may help in increasing the scope of business
(Márcio Tavares Thomé and et.al., 2012). However, for organizing trade fairs and exhibitions in
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different nations, high amount of capital is required as through these ways, products and services
of Ritz Carlton are promoted in front of its competitors.
CONCLUSION
From the above report, it can be articulated that to maximise profits and increase
sustainability of business in market, sales planning and operational activities play the vital role.
Database management is another important aspect which helps in effective management of
business activities. It has been shown that while dealing in international market, it is important
for Ritz Carlton to consider external factors of business. Along with that, if firm will participate
in trade fair and exhibition, it will also prove to be beneficial as through the same, brand image
of products and services offered by organisation will get improved. Furthermore, it has been
evaluated that role of export team is needed to be defined in a clear manner so as to get
successful at the global level. Overall it can be said that to run business in a smooth manner,
sales planning is required to be done in an effectual manner.
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REFERENCES
Books and Journals
Adamczak, M. Domański, R. and Cyplik, P., 2013. Use of sales and operations planning in
small and medium-size.
Ambrose, P., 2014. What Happened to Planning? Routledge.
Dewsnap, B. and Jobber, D., 2012. An exploratory study of sales-marketing integrative devices.
European Journal of Marketing. 43(7). pp.985–100.
Islam, R., 2013. Improving productivity and profitability of a bioanalytical business through
sales and operation planning. Bioanalysis. 5(14). pp.1795-1804.
Jobber D. and Lancaster, G., 2011. Selling and Sales Management. Prentice Hall.
Kennedy, P. J. and Avila, R. J., 2013. Decision making under extreme uncertainty: blending
quantitative modeling and scenario planning. Strategy & Leadership. 41(4). pp. 30–36.
Márcio Tavares Thomé, A. and et.al., 2012. Sales and operations planning and the firm
performance. International Journal of Productivity and Performance
Management. 61(4). pp.359-381.
Noonan, C., 2010. Sales Management. Taylor & Francis.
Oliva, R. and Watson, N., 2011. Cross-functional alignment in supply chain planning: A case
study of sales and operations planning. Journal of Operations Management. 29(5).
pp.434-448.
Thomé, A. M. T. and et.al., 2012. Sales and operations planning: A research
synthesis. International Journal of Production Economics. 138(1). pp.1-13.
Wacker, J. G. and Lummus, R. R., 2012. Sales forecasting for strategic resource planning.
International Journal of Operations & Production Management. 22(9). pp.1014 – 1031.
Yoo, M. and Kitterlin, M., 2013. Projecting sales and costs for the food service
operation. Hospitality Review. 1(1). p.7.
Yu, W., Ramanathan, R. and Nath, P., 2014. The impacts of marketing and operations
capabilities on financial performance in the UK retail sector: A resource-based
perspective. Industrial Marketing Management. 43(1). pp. 25-31.
Zanjani, M. K. and Nourelfath, M., 2014. Integrated spare parts logistics and operations planning
for maintenance service providers. International Journal of Production Economics. 158.
pp. 44-53.
Online
5 Stages of consumer buying decision process. 2016. [Online]. Available through:
<http://managementation.com/5-stages-of-consumer-buying-decision-process/>.
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Marketing - Promotion Strategy. 2013. [Online]. Available through:
<http://www.smallbusiness.wa.gov.au/marketing-promotion-strategy/>. [Accessed on
18th November, 2016].
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