Sales Development and Merchandise Strategies: Hilton Hotels Report

This report examines the sales development and merchandise strategies employed by Hilton Hotels. It begins by analyzing the key components of a product and how the product mix contributes to sales and profit, followed by an assessment of market segmentation's role in maximizing sales. The report then delves into the factors influencing consumer buying behavior and evaluates the effectiveness of various advertising media and external merchandising techniques. Further, it explores the impact of design and layout on customer spending, the effectiveness of internal merchandising materials, and different promotional activities. Finally, the report evaluates personal selling techniques, the influence of operational design on sales revenue, and key principles for sales training programs, concluding with a comprehensive overview of Hilton's approach to sales and merchandise.

SALES DEVELOPMENT
AND MERCHANDISE

Table of Contents
TASK 1............................................................................................................................................3
1.1 Key component of the product.........................................................................................3
1.2 How product mix contribute to sales and profit...............................................................4
1.3 Assess how market segmentation contribute to maximize sales......................................5
TASK 2............................................................................................................................................5
2.1 Factors affecting buying behaviour..................................................................................5
2.2Assessment of advertisement media used for sales development situation......................6
2.3 Evaluation use of external merchandising to maximise customer volumes.....................7
TASK 3............................................................................................................................................9
3.1 Influence of design and layout on customer spending.....................................................9
3.2 Effectiveness of internal merchandising materials.........................................................10
3.3 Evaluation of different promotional activities according to different scenario..............11
TASK 4..........................................................................................................................................13
4.1 Evaluation of personal selling techniques......................................................................13
4.2 Discussion on influence of operational design on sales revenue...................................14
4.3 Key principles that should be included in sales training program..................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Sales development is the factor which is sits between the current market situation and
functions performed by organizations. Leaders and managers are responsible for continuously
monitor the entire operations of company. Further, they have to frame plans and strategies in
order to increase their sales. Better customer service attract large number of customer through
which firms are able to earn more profit and improve their performance in international market.
They need to use various types of methods and take a help of advance technologies for
promoting their goods and services across the national boundary. In order to provide good
customer service and offering products according to current market demand, leaders have to
identify market needs to people through which organizations provide full satisfaction to them.
The present report is based on Hilton hotels and resort which is one largest hotel. Provide
luxurious services to their customer and offer full satisfaction to them with fulfil their basic
needs and demand. Around 2 billion people are enjoy services of hotel. It maintain safe, secure
and peaceful environment in hotel in which people are easily stay and enjoy their staying period.
It receive feedback from their customer and try to improve its performance on the basis of
feedbacks.
TASK 1
1.1 Key component of the product.
Every company wants to continuously monitor the sales development plan through which
they can earn more money and improve their profit margin as well. Organizations have to deliver
best quality of product with perfect packaging, designing and quality. Good quality of goods and
services attract large number of people which increase their sales. Hilton hotel offering varieties
of products and services have a better quality at reasonable price which is easily affordable for
them. They need to expand their business in various countries in order to increase their sales.
Leaders and managers are responsible to use latest techniques for promote its services in all over
the world. They have to maintain their overall performance in international market through
providing best quality products and better customer services. Different types of key components
of products are as follows:
Branding- Brand stands for identification of goods and services of the particular
organization. It can be in form of name, symbol, shape etc. The branding is not only sale goods
and services but also maintain product superior then their competitors. It can able to build trust

on customers so that suppliers need to offer best quality products to them. With the help of brand
symbol customers easily understand the product belong to which company.
1.2 How product mix contribute to sales and profit
Product mix is a combination of various ranges of product line that is delivered in the
target market through an organisation. It is only possible through product mix elements that are
present in it are influence customers to buy firm’s product or services (Saxe, 2015). It also
enhancing brand value in minds of its clients as it involves a unique products which have a high-
quality. Therefore, in product mix there are significant elements that contributing in company’s
product sales and increase profit effective manner. Hilton hotel applied product mix elements
which are describe as follows-
 Packaging- It is first and foremost activity of each organisation that means it is that type
of task that are mainly concerned with develop an appropriate wrapper, design and
container for the goods. Hilton hotel deliver their services at different countries by taking
order online for which it is essential to protect foods from packaging. It facilitates them to
effectively deliver the product at final consumers (Shimizu, Ricoh Elemex and Ricoh
Company,2010). It plays a major role in contributing increasing hotel’s product and earns
more profits. Thus, it protects a firm’s goods from moisture, sun, rains, insects and
breakage etc. while transits from place to another. Further, this element highly attracts a
consumer towards product that are unique in colour or shape due to which they easily
identifies. It influence buyer in picking up the product quickly if design are unique and
highly attractive.
 Labelling- The role of this elements of product mix is that putting an identification marks
on company’s product package (Radebaugh, 2014). It providing the information about
product such a name of manufacturer, name of product, expiry and manufacturing and
general instruction such as weight, use and price etc. It directly influenced the buyer to
purchase product that leads to enhance firm’s sales and profit in desired manner. Hilton
Hotel Company applied labelling elements on its packaging of product for which it
attracts a consumer in the target market effectively.

1.3 Assess how market segmentation contribute to maximize sales
In the competitive world era there are most reputed company establish in hospitality
industry. They all have their unique marketing strategy to increase sales in the potential target
market. The most famous organisation Hilton hotel adopt market segmentation strategy which
contribute in maximize sales of its products or services (Justus and Pevinson,2016). Market
segmentation strategy applied in the larger market of any country that facilitate them in
identifying the customer’s perception and needs of similar characteristics. It categorise the large
market into smaller with similar preferences and taste presents of customers. The marketing
manager mainly focuses on particular market segmentation through which it targeting and makes
positioning due to which it increase company’s brand image.
Hilton hotel categorise large UK market into a single market segmentation in which they
focus on demographic segment. Thus, it is based upon income, age, sex, gender and family size
etc. Accordingly, the cited hotel understands the customer needs and desire for which they
design its product plan. Therefore, with the help of information regard to clients they restructure
its pricing and target them effectively (Schwenzer, Hachem and Kee, 2012). The cited hotel
makes a marketing plan in which they deliver high quality of services to the high-level income
group people and vice versa. Further, it restructured design of its food menu at restaurant in
which they deliver fast food, shakes and ice cream who are under age 5-25. Apart from this, the
customers who are under above 25 and below 40 they serve Vegetables, pulses, rice, salad,
boiled food and chapattis etc. Thus, they also develop a unique offer such as before ordering they
serve special starters and after ending it cut cake. It is only possible through market segmentation
due to which they effectively design the menu by identifying customer’s perception. However, it
directly impact on company’s sales and generate a large amount of revenues effectively.
TASK 2
2.1 Factors affecting buying behaviour
Buyer behaviour of any consumer impacts on their purchase decision regard to product due
to various factors. Hilton hotel consider mainly four factor while designing and marketing it
goods or services. These are as follows-
 Psychological factors- Consumers of Hilton hotel motivate them to buying those
products when they feels hunger and thirst rather than fulfil its status. The motivate factor

of He/ She is to purchase pizza whereas there are other factors which may also influence
to buying products or services. The thirsty person only prefers to drink water rather than
juice, packaged water and soft drinks etc. Attitude is also a major factor that impact on
consumer buying behaviour towards products. Let takes an example, an individual who
like to consume a French food in a restaurant they never prefer to give order of Chinese
food which influence on buying behaviour (Saxe, 2015). Therefore, there is one more
factor is perception which may also impact in that its due to difference in individuals
thinking regard to product. For example, an individual thinks that Hilton Hotel serve
better quality of food or services at reasonable prices. Whereas, some other people think
that Marriot hotel offer best quality of product or services due to difference in perception
influence on buying behaviour.
 Social factors- It is deeply and highly influence on buying behaviour of consumers there
are some social determinants. It include mainly such as individual income, wealth,
education, family tradition and experience etc. Employment factor impact on consumer
buying behaviour in which they seek only healthier food rather than fast food. Thus, they
have a depth knowledge of bad impact their health if they consumer junk food. Family
tradition factors highly influence on buying behaviour of a consumer in which the people
who consumes vegetarian food. It never likes to eat non-vegetarian food as people family
tradition does not allow them to consume (Famularo, Bruwer and Li, 2010). Income
group is a social determinant in which the consumers who are from high society prefer to
take order high price food. These people are easily affordable high range of food whereas
low income group ignore it.
 Economic factors- The main factor includes in it are unemployment level, wages,
interest rates and financial status of an individual (Gupta, 2011). All these are highly
impact on purchase decision of a consumer in which people who has a high salary like to
purchase high price product. People are below poverty line does have enough income to
go to visit a Hilton Hotel as they it charge high expenses.
2.2Assessment of advertisement media used for sales development situation
Advertisement media is that tools that is widely used by most companies for the purpose of
delivering information widely in the target market. It has a various forms that are used to transfer
message from one place to another that are newspaper, radio, social media, magazines, banner

advertisement and television etc. Therefore, in the hospitality industry most organisations used
different ways to deliver message to beat competitors. The message that are encounter in
advertisement they obtain information about product while reading magazines, surfing internet,
watching television etc. that may influence on buying behaviour. The main motive of
advertisement used in marketing strategy is to increase sales of company’s products or services.
The information that is present in it provides product information about price, features and
quality which may influence them to buy product. It directly leads to increase company sales or
services in most effective manner.
It has a direct relationship in sales development it has a power of mass communication to
reach a large group of customers. It gives assurance that advertisement that is used in transfer
message gives a long business life with profitability in sales. Further, another factor in
advertisement that will develop sales of company’s product is that it also gives various solutions
to a consumer problem. It has a power to reach with the consumers quickly without spending a
huge amount through social media.
Hilton hotel adopt advertisement media for the purpose of increasing sales at target
market. They adopt print media in which they place information on magazines and newspapers
to reach UK consumers. It will attract a local and professional business in that information is in
visual image that attracts customers. It is the best way to provide in information of discount offer
and special offers in foods as well as room booking. It will influence individuals towards Hilton
hotel that may directly develop sales of services or products.
They target potential customers for which it increases sales of Hilton hotel through Direct
mail marketing. Beside this, the another advertisement media used by cited hotel is that social
media as it’s retain more young customers. Most people spend their time in access over internet
and the most famous website such as Facebook, Twitter, You Tube and Instagram etc. Thus, due
to this reason Hilton hotel deliver information on these famous website to retain more customers
and increase sales widely.
2.3 Evaluation use of external merchandising to maximise customer volumes
External merchandising can be defines as it is that process through product can be
promoted due which attracts a consumer from various places. Thus, with the help of this it assist
them to display product in presentation in the retail outlets that leads to increase company’s
brand image (Knotts and et, 2012). It plays a vital role in retaining more customers and enhance

company’s product sales. Therefore, there are some recommendation due to which external
merchandising can be improved in Hilton hotel. It can be as follow-
 They should design its products that are highly attractive that directly increase
product’s demand and also improves sales.
 Another factor they can add in its product is a branding that enhanced presence of
product from various public places due which they put their attention more.
 The Hilton hotel should distribute Pamphlets in which they provide information
about their product or services in public places so, people think of used or try new
service effectively.
 Therefore, there are many aspects in external merchandising due to which Hilton
hotel made design in its product that are as follows-
1. Location- The Hilton hotel should open their restaurants near those areas where
public are widely visit. It can be a local market, near malls, cinemas, garden
area, tourist places and airport place (Diamond and Diamond, 2011). Thus, in
these area people are widely visit do fun and enjoy with their families can
attract towards Hilton restaurants that leads to retain more customers.
2. Display at surrounding stores and areas- They can advertise and conduct
those events like trade fairs for the purpose of display its product and services
near stores. It will able consumers to effectively give information to the
customers about Hilton hotel. It will directly facilitate them to urge to know
more about hotel.
3. Height and view of building from exteriors- The another factor is a exteriors
of Hilton hotel building which may eye catching and attractive as due to its
views as well as heights. Thus, it will directly gives attention to the consumers
as it is a beautifully design of exteriors. Apart from this, they can also grand
building through which it gives unique entrance to the visitors. It will catching
attention of customer towards Hilton hotel which increase consumers volume.
4. Facilities such as parking- Another facility Hilton hotel can give to it
customers that is a proper parking facility. Therefore, it provide assist the
consumers as they does not find any kind of problem while parking their
vehicles within the hotel. Thus, it will directly enhance customers volume by

provide them support at reception as well as entrance to them it will impress to
utilize hotel facilities.
The above factors that are used by Hilton hotel inn external merchandising attract
the customer from wider place. It may gives attention to the visitors in unique
manner which may increase the customers volume in desired manner.
TASK 3
3.1 Influence of design and layout on customer spending
Hilton hotel have to build strategy for designing their hotel in order to attract large
number of customers. There are some objectives in which the managers of this hotel can design
their strategies.
 To build loyalty by providing the rewards to customers and employees.
 To increase the sale on the visit of customers.
 The cost of products and services does not very much high and it should be control by the
managers.
 To meet the legal requirements of customers on time to time.
The managers uses three elements in design of the rooms and these affect on the
customers spendings such as layout, signage and feature areas. In signage it help the customers
about the location of the products and departments in hotel. As it provide the product and service

information and suggest the customers about whether to use service or not. In hotel the use
signage is used to identify the location of merchandise categories with are offered by the hotel. If
signage are not used in hotel then customer will face obstacles to find out their rooms or any
thing in hotel. It also impact on the customer income. If the customers are spending huge amount
then they want that high quality of services should be provided by the hotel.
While design of premises it should clearly defines the methods of operations. In hotel, the
customers want all facilities properly such as lighting, hand-washing, cleaning and disinfection
and sanitary facilities. The equipments must be designed in good way which should avoid the
contamination and follow the legal requirements. Layout designs includes the advantage and
disadvantage of grid, racetrack.
If the look of hotel is heritage or traditional then it directly influence on the customer
spendings. The quality of services, the design of the rooms and restaurants should be attracted
towards customers in using the services of this hotel. The design and layout of the hotel services,
rooms will directly or indirectly impact on the customer spending. There are four types of
signage will influence on the customer spendings such as;
Category signage – It helps the customers to identify the products or services which are
offered by the hotel.
Promotional signage – This special describes what are the special offers which are
displayed on the wall of the hotels.
Point-of-sale – This signage quickly help the customers for identifying their aspects and
information about the particular products or services.
Digital signage – The visual content is delivered through the digitally which are managed
and controlled by the managers. It helps the managers to attract the attention of customers to use
these services.
3.2 Effectiveness of internal merchandising materials
The internal merchandising strategies to increase occupancy rats and maximize the
profitability. Internal merchandising of materials includes various components like; good design,
use of colours, suitable display elements, product placement and many more. It is important in
hotel that the employees should have a dress code. In hotel all the personal wearing are to be
placed in the drawers which allocated by the the managers. The employees have to make the
strong relationship with the customers so that they can retain for a long period of time. The

manager has to provide the proper training to employees so that they can deliver quality of
services to customers with in time period. If any customer are not unable to come on time in
hotel and they want their money back then appropriate return policies should be accomplish by
the so that customers will get satisfied. These policies should be apply for 30-45 days. There are
more than 570 hotels and resorts of Hilton hotel across the county and in all they have to provide
the quality of services to customers. Internal merchandising includes the materials colours,
lighting, fixtures, flooring, wall textures, cleanliness, internal signage etc.
The dressing facilities of employees should be properly. The dress code of employees,
staff should be unique so customers can easily find out that who are employees of this hotel.
There are many customers who booked the hotel through agencies. Internally, there are many
employees who are in the position to upgrade the sale and purchase of products and services.
They have to maintain the customer loyalty and for the to maintain that they treat as a guest with
their customers in best possible manner. Through this the customers will recognized and they
contribute in the hotel revenue's. Food and beverage is an elementary aspect of Hilton hotel and
increased their revenues. Internal merchandising increased the profitability through providing the
packaging and merchandising plans to customers.
The impacts of internal merchandising the hotel have to achieve their objectives by
measuring the actual performance with the standard performance.
3.3 Evaluation of different promotional activities according to different scenario
The main effective marketing tool can be used by the company is a promotion technique in
order to promote their products or services in target market. The main aim of this is that to
increase sales and generate more amount of revenue from the competitive market. Thus, it is
hard to attract people towards product as there is increase in the competition due to which
organisation adopt different promotion tools in different situation. It is best way to meet the
marketing objectives as they can effectively communicate information about products or
services. It includes benefits of goods or services and also provide them features which may
directly retain more customers by attract them towards products. Therefore, there are various
type of promotional activities that can be applied by Hilton hotel in different situation that are
described below-

 Advertising- It is the most effective promotional tool that are used by most of the
company wide for the purpose of promoting its products or services. It gives facility
to provide information regard to goods at a wider place for which they can easily
retain customers and increase sales (Potter and Seymour, et, 2011). Thus, there are
various type of advertising through firm can place its information are Newspaper,
Magazines, Radio, Television and outdoor signage etc. Hilton hotel adopt advertising
tool at that situation when they want to enhance their brand image and also when
they wants to increase sales.
 Personal selling- It is also a one of the most effective method for promoting that is a
personal selling. It gives facility to the customer to directly contacting through which
they can easily convince them about product or services. The main benefits is that
company can deliver information to customer is about product benefits, feature and
value etc. Whereas, they can easily understand customer’s perception, opinion
through reaction by contacts them personally. Hilton hotel adopt personal selling at
that situation when people disliking their product and most of them are not aware
that reduce sales. Thus, at that time they applied this techniques for the purpose of
convince clients personally and it also facilitate them to alter their products. It is only
possible in this techniques it give a proper information about consumer behaviour
and attitudes towards its product.
 Publicity- In these promotional activities in which company deliver information by
print media and broadcasting media. They maintain public relations through giving
interviews on media and also use word of mouth etc. Hilton hotel adopt publicity
technique at that time when they want to build a strong relationship with the
customer. It will not only maintain client relationship but it also create customers
loyalty and trust due to which people mostly visit Hilton hotel widely.
 Sales promotion- The Company can use sales promotion in which they provide
them discount offers and coupon benefits with products to its customers. Hilton hotel
adopt sales promotion tool at that time when they lose their competition in
hospitality industry (Abdullah and Ismail Ahmad, 2010). The organisation adopts
this promotion tool to increase sales by retaining more customers. It is only possible
through provide discount offer and special schemes.

 Direct marketing- Each and every organisation used direct marketing promotional
techniques. It majorly involves sending E-mails, letters, Brochures and Pamphlets etc
by targeting potential customers. Hilton hotel used this technique only when they for
the purpose of creating awareness in the minds of its customer.
 Internet- It can be used as a promotion of products through which message can be
transfer over the websites which retain customer widely and quickly. Hilton Hotel
applied this tool only when they want to increase short term sales at wider place. It is
used by them to retain customer not only on local marketplace but also attract people
from international level. It can easily give order online which will directly enhance
their sales and earn more profit.
TASK 4
4.1 Evaluation of personal selling techniques
The main role of personal selling is that to communicate with the potential customers
directly for main purpose of selling a product or services in the target market. It is mainly a part
of promotion mix that are used by Hilton Hotel instead of advertising, sales promotion and
public relations etc. Thus, it is the most vital tool which are used by entrepreneurs if they have a
highly skilled sales person who have an ability to promote companies product or services in the
target marketplace. The cited company adopt personal selling techniques that gives firm both
advantages and disadvantage (Frew and Frew, 2015). The main benefits an organisation get
from this technique is that it allow the salesmen of a firm to directly present message to its
customers. It will not only deliver information but they also get response and take feedback
quickly. Therefore, there is an another type of benefits is that it is a best tool to communicate
marketing information effectively.
On contrast to this, it has a disadvantages to the company is that personally selling cannot
easily reach with the wider potential customers. They cannot act as a advertising in which it has a
capacity to reach a wider clients in most effective way. It consumes more time and expenses
while contacting each and every customer if it is not successfully retain customers. Further, it has
also have a benefits is that sale person can easily get to know more about its competitors
products or services. It also facilitates them to develop a new product and solve the customers by
altering its product as the customer expectation. Personal selling have an ability to establish

relationship among customers that are long term and it also build loyalty that directly increase
sales.
4.2 Discussion on influence of operational design on sales revenue
Hilton hotel used operation design for the purpose of enhancing sales that are as follows-
Store design- The company adopt this design for the purpose provide customers a hedonic
benefits in which they enjoy shopping experience and also entertain. Therefore, it will encourage
them to spend more time in restaurants and it will control cost while implementing. It mainly
affects the labour cost as well as reduce inventory and its designs intimate customers a
comfortable experience which results into increase more sales.
Layout design- There are three main elements that are present in it are the Grid, racetrack and
free from etc. it has a signage as well as graphics which assist consumers to locate a specific
department and products which deliver information. It also suggest the special purchases and
graphics such as a photo panels which reinforcing a store’s image. It facilitate them to identify
the location of merchandise under a store which directly increase sales.
4.3 Key principles that should be included in sales training program
Hilton hotel conduct a sales training programs for which they consider main principles
regard to this that are as follows-
 Prepare effective format- The stakeholder are bombarded with too much training assets
they first screening. They put more efforts in retaining knowledge it mainly focus on critical
concept to get the best results. The content should be made by them in clear and succinct to
go a long way.
 Communicate in advance- The main stakeholder of sales training programs that are mainly
managers. Sales executives and reps of Hilton hotel. They have to communicate in advance
to make effective training through various sales portals (Lassk and Mascio, et, 2012). It
mainly includes live chat, e-mail and any other online channels. It makes sure that the action
taken by company regard to sales can be easily understood.
 Leverage rich media- The main principles for sales training program is a adopting effective
solutions for the purpose of supporting the multiple image. Apart from this, another support
is a audio and video which give a great opportunity to the made content more attractive. It

can be represent by usage of training applications such as power point slides in which they
show data through graphs or charts.
 Use embedded social tools- There is an another collaborative application that allow
stakeholder to share their feedback or cheer them its peers. They easily take advantages to
reduce confusion through which programs can be on track.
 Include explanation- Hilton hotel should follow this principle in which it provide a
question and answer techniques. It will facilitate to know that the rep can respond to its
peers effectively or not through explanatory text of each answers submission. Therefore,
there is an another robust explanation that mainly include references and links to support the
training resources only if available. It will maximize learning experience for those who are
in teams.
CONCLUSION
Summing up the whole report it has been concluded that Hilton hotel a promotional
techniques for the purpose of increasing sales. The another factor used by them that is a external
merchandising due to which they design their building with unique feature that directly catches
the eyes of visitors. It directly enhances sales development of a company and they also adopt
product mix techniques in that its use packaging, labelling and branding etc. Therefore, it has
been also analyse that the market segmentation is also an effective techniques for the purpose of
sales development. Afterwards, Hilton hotel adopts the various promotional activities at different
situation that not only increase sales but it will build a customer loyalty and brand image.

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