Hilton Hotel Sales Development and Merchandising Strategies

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HILTON
SALES DEVELOPMENT AND MERCHANDISING

Table of Contents
INTRODUCTION.....................................................................................................................................2
PART 1...................................................................................................................................................3
A) EVALUATE THE KEY COMPONENTS OF THE HOTEL HILTON..........................................................3
B) HOW IS EACH COMPONENT OF THE PRODUCT CONTRIBUTING TO THE SALES AND PROFIT?......4
C) IDENTIFY WHAT WILL BE THE BEST MARKET SEGMENT FOR THAT CHOSEN PRODUCT AND HOW
YOU THINK THAT MARKET SEGMENT WILL CONTRIBUTE TO THE SALES MAXIMIZATION.................6
PART 2...................................................................................................................................................8
D) DEFINE “BUYER BEHAVIOR “AND DISCUSS AT LEAST TWO (2) FACTORS THAT INFLUENCE
CUSTOMERS’ BEHAVIOR IN THE HOTEL HILTON................................................................................8
E) MAKE A CHECKLIST OF INTERNAL MERCHANDISING MATERIALS AND EVALUATE THEIR
EFFECTIVENESS MAKING RECOMMENDATIONS WHERE NECESSARY................................................9
PART 3.................................................................................................................................................12
G) SUGGEST AND JUSTIFY THE MOST APPROPRIATE ADVERTISING MEDIA FOR EACH PRODUCT TO
MAXIMIZE SALES.............................................................................................................................12
H) FOR EACH OF THE ABOVE TWO (2) SELLING SCENARIOS, SUGGEST PROMOTIONAL ACTIVITIES
THAT SHOULD BE USED BY THE CHOSEN ORGANIZATION AND HIGHLIGHT THE PROS AND CONS. 13
PART 4.................................................................................................................................................15
I) HOW ARE THE DESIGN, LAYOUT AND OPERATIONAL FUNCTIONING INFLUENCING THE SALES
REVENUE?........................................................................................................................................15
J) ASSESS THE PERSONAL SELLING TECHNIQUES USED BY YOUR CHOSEN ORGANIZATION AND
SUGGEST WAYS TO IMPROVE THEM...............................................................................................16
K) TO MAKE THESE IMPROVEMENTS OR CHANGES IN THE SALES FORCE, PROPOSE A SALES
TRAINING PROGRAMMER COVERING AT LEAST TWO (2) KEY PRINCIPLES......................................18
CONCLUSION.......................................................................................................................................20
REFERENCES........................................................................................................................................21

INTRODUCTION
The hospitality sector has become trendier these days. The purpose of this assignment is to
make aware people about sales development and merchandising techniques in the
hospitality sector (Lashley and Morrison, 2010). In this assignment, the products and its
benefits and characteristics in Hilton hotel will be discussed. This will also be identified that
what will be the best market segmentation so that the sales can be increased. The buyer
behavior in the external as well as internal merchandising materials, will be defined with its
effectiveness.

PART 1
A) EVALUATE THE KEY COMPONENTS OF THE HOTEL HILTON
Characteristics and advantages of the product and services offered by Hilton
Hilton is very famous for its services like accommodation, gambling and entertainment.
Hilton is a well-recognized hotel in the UK and it doesn’t compromise with its products and
services. Hotel Hilton is much focused in order to provide the best quality of the product
and services with its best competitive price without any concession in quality. Apart from
this, it also involves the bars, smaller shops, restaurant, spa, laundry services, banquet halls,
travel desk, business center and so on that generates great revenue of the hotel every year.
Mainly there are three types of products that have been categorized in hotel management
i.e. Core, facilitating and supporting products.
Core products are the basic products which are purchased for routine use.
Facilitating products are those products which are used for consumption of core products
such as restaurants, bars and online reservation services.
Supporting products are the additional products that are offered to increase the
competitive effects of the hotel, such as offering free newspaper, magazines, 24/7 room
services and so on (Bowie et al., 2016).

B) HOW IS EACH COMPONENT OF THE PRODUCT CONTRIBUTING TO THE
SALES AND PROFIT?
The hotel Hilton is quite focused in order to provide the basic services to luxurious services.
The categorization of the products and services are quite helpful in order to increase the
sales and the profit of the hotel. The main components that contribute to the sales and
profits are described below-
Figure 1: Pricing Strategy
[Kotler et al., 2017]
Product- Products that Hilton hotel provides to the customers are Luxurious rooms, fitness
centres, pool, restaurant, housekeeping services and so on. These products also attract the
customers and increase the sales and the profit of the company.
Types of products
• Accomodation- The Hilton hotel provides luxurious rooms in very effective prices.
The hotel also provides the online services by which customers can check the details
of accommodation facilities and book a room online.

• Food & beverages- The hilton hotel also provide the varieties of food to customers.
They especially take care of the quality of the food and ensures that this is safe for
customer’s health.
• Recreation- recreation involves the refreshment activities for body such as spa, pool
facilities and other activities.
Pricing strategy – The Hotel Hilton doesn’t give up in terms of providing effective offers to
the customers. It provides the different offers based on different prices and provides
discounts and allowance occasionally as well that definitely attract the customers around
the world and customers take the advantages also that ultimately increase its sales and
revenue of the company’s products. Hilton’s pricing strategy is based on different adjusted
prices that could be understood by the diagram below-
Place and distribution- Hilton’s place and distribution system is quite flexible for the
customers. Basically, Hilton uses direct and indirect method for distribution of the product
to consumers (Hervas-Drane, 2015). They use the social media platforms, hotel website and
global distribution system in the direct method and indirect method involves the good
relationship with event planners and travel agents that helps to promote the hotel’s
products and services and increase the sales and profit of the company.
Promotion and communication- Hilton hotel uses the commercial advertisement, Social
media and different websites in order to promote the business products and services so that
the hotel’s information can be provided on a regular basis.

C) IDENTIFY WHAT WILL BE THE BEST MARKET SEGMENT FOR THAT
CHOSEN PRODUCT AND HOW YOU THINK THAT MARKET SEGMENT WILL
CONTRIBUTE TO THE SALES MAXIMIZATION.
Market segmentation is based on the target customers and the targeted customers could be
found by effective marketing strategies in order to identify their needs and requirements.
This will help the hotel to segment the market according to the customer’s comfort that will
directly contribute to effective sales of the products and services of the hotel and will
increase the profit. According to the Hilton hotel, market segmentation has conducted in
several ways described below-
• Demographic profile- According to this profile, the market has been classified on the
basis on the basis of customer’s income and special offers for the government
employees’ up to 50% at least once a week (Kimes, 2016).
• Psychometric Segmentation- This segment ensures the customer's area of interest,
their lifestyle and the attitude towards product and services. It mainly focuses on the
customer’s requirement according to their lifestyle and interests.
• Geographic Segmentation- This segment is classified into business class and the
occupation class. The Hilton hotel also segmented the market according to regions,
areas and territories.
• Behavioral segmentation- This market has been segmented according to the
customer’s behavior towards the product and services provided by the hotel. The
customers’ behaviour could be judged by organizing the parties as per customers’
requirement such as birthday parties and marriage parties and what facilities
customers want should be focused on.
As per the study of different sengements and the product of Hilton hotel, the demographic
segmentation would be best as it will be helpful for all types of customers. The government
employees can avail extra benefits and rest people can avail the facilities as per their
income. Hotel Hilton provides the lodging facilities in different prices as per the customer’s
need and it has different varieties of cuisines and the people from different regions and
cultures can enjoy the taste of food of their own culture in hotel hilton. The people who are
capable enough to spend extra money can have the recreation facilities. By providing the

Hotel facilities in this way, the company can maximize there sales volume and maximum
selling will maximise the profit ultimately.

PART 2
D) DEFINE “BUYER BEHAVIOR “AND DISCUSS AT LEAST TWO (2) FACTORS
THAT INFLUENCE CUSTOMERS’ BEHAVIOR IN THE HOTEL HILTON.
Buying Behaviour- Buying behaviour can be defined as a decision that is taken by an
individual at the time of purchasing of a product or service. The buying behaviour involves
the preference, attitude, intention and a final decision of an individual.
Factors affecting buyer’s behavior
Somehow, the buyer’s behavior is based on the services that are provided by the Hilton
hotel. Generally, Hotel Hilton is quite customer oriented and takes care of the customer’s
comfort inside of the hotel. Hotel Hilton is associated with multiple services but mainly
focused on the food facility and accommodation facility (Kimes, 2016). Still, there are
multiple factors need to be understood in order to influence the customers towards their
services in the hotel.
• Internal Factors- It involves the Social perception, personality, attitude of the
customers and psychological needs of the consumer that affect the consumer’s
behaviour in a wide range. Human nature is quite flexible and they are sensible as
well at the time of purchasing something. Consumers as a buyer take the effective
decision at the time of purchasing and they can recognize the product and services
by touch, smell, test, hearing, sight and so on. Apart from this, the buyer’s
perception gets affected by the customer’s experience, the brand image of the
product etc. The marketing approach should be based on these internal emotions so
that the buyer could be easily influenced.
• External factors- The external factors involved the cultural factors, Socio-economic
factors, trends and experience of the customer. Hotel Hilton has expanded its
business on the domestic level as well as on an international level. This is very
important for the hotel Hilton to maintain the cultures, values and beliefs according
to the country and customers’ interest (Juan et al., 2017).

E) MAKE A CHECKLIST OF INTERNAL MERCHANDISING MATERIALS AND
EVALUATE THEIR EFFECTIVENESS MAKING RECOMMENDATIONS WHERE
NECESSARY.
Internal merchandising material’s use is quite helpful to maximize the profit by its effective
selling. There are multiple materials that can be effective to use in order to increase the
sales volume and making a profit.
Internal Merchandising Material Evaluation & Recommendation
Product merchandising This is basically used for promotional
activities in order to sell the product. This
can be done online as well as offline.
For example, Hotel Hilton can promote the
products and services with the help of social
media and they can use posters outside of
stores or certain places in order to [promote
the product and the services.
Visual Merchandising This is basically a display technology which is
used to highlight the services and the
products so that people could be aware of
the usage of the product and could know the
benefits of services.
Example, Hilton can use visual
merchandising in order to make people
more aware of the services and the
products. Visualized things attract customers
more.
Digital merchandising Digital merchandising is all about online
selling of the product and the services with

the help for e-commerce websites.
Example, customers can book hotel rooms as
per their need online (Nova, 2018.).

F) WHAT IS EXTERNAL MERCHANDISING AND HOW DOES IT INFLUENCE CUSTOMER
TURNOVER?
External merchandising is also influence the customers in order to avail the company’s
services. Hilton can maximize the customer’s volume by promoting the brand image of the
products and the services of the Hotel. The selection and design of the product attract the
customers that directly impact the sales revenue of the hotel. There are multiple External
merchandising That influence the customers’ turnover described below-
Internal Merchandising Material Evaluation & Recommendation
Mass merchandising This merchandising strategy keep the eye on
every visitor in the hotel and provide the
services accordingly
Example, Hilton hotel provides a similar
service to the general class of people.
Segmented merchandising Hilton hotel can prepare the catalogues
separately in order to fulfill the customers’
need and should provide the service as per
their interest.
Personalized merchandising Hilton hotel uses the personalized technique
of merchandising in order to increase the
communication and interaction with the help
of ratings and reviews shared by the
customers on navigated sites. That helps the
hotel to know about the customer’s interest
and they make changes accordingly that
helps to increase the profit margin and sales
volume as well (Singh and Yaeghoobi, 2018).