Sales Development and Merchandising Analysis: Hilton Hotel Report

This report provides a comprehensive analysis of sales development and merchandising strategies employed by Hilton Hotels. It begins with an introduction to the hospitality industry and the role of sales development, then delves into the key products and services offered by Hilton, including core benefits, augmented products, and facilitating services. The report explores Hilton's product mix, encompassing core products, extra facilities, food and beverages, and promotional offers. It examines the contribution of market segmentation, including psychographics, demographics, and behavioral factors, to improve sales. Furthermore, the report discusses the factors affecting buyer behavior, such as cultural and psychological influences, and assesses appropriate advertising media for sales development situations. It evaluates the impact of design and layout on customer spending and different promotional activities. The report also evaluates personal selling techniques, the influence of operational design on sales revenue, and key principles of a sales training program. This report provides valuable insights into the strategies Hilton uses to maximize sales and enhance customer experience.

SALES DEVELOPMENT
&
MERCHANDISING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.2 Product mix......................................................................................................................4
1.3 Contribution of market segmentation to improve sales....................................................5
TASK 2............................................................................................................................................6
2.1 Discuss the factors affecting the buyer behaviour............................................................6
2.2 Assess appropriate advertising media for sales Development situations........................6
2.3 role of external merchandising in maximising customer volumes..................................7
TASK 3 ...........................................................................................................................................7
3.1 Effect of design and layout on customer's spend............................................................7
3.2 Review and evaluate internal merchandising materials of your selected organisation....8
3.3 Evaluation of different promotional activities for different scenario...............................8
TASK 4............................................................................................................................................9
4.1Evaluate personal selling techniques used by Hilton........................................................9
4.2 Influence of operational design on sales revenue on Hilton ...........................................9
4.3 Key principles included in a sales training programme for Hilton...............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Sales development and merchandising forms an integral part of hospitality industry
where in a firm aims at generating high volumes of sales in order to increase its profitability and
market share. It a well-planned process in which a firm by analysing various market attributes
comprising consumer's needs and wants, competitor’s strategies, prevailing market trends,
economic conditions etc. introduce necessary modifications in its present products and services.
It forms important for in order to capture attention of new customers, retain its existing and to
target new potential segments of the market (Chimhundu, 2016).
Hilton hotel corporation is one of the flagship brands in hospitality industry which was
established in 1919 in Cisco, Texas, UK. It has around 3890 hotels which is managed by a team
of 140000 proficient employees in around 91 nations across the world. There are more than 50
Hilton Hotels in UK.
The assignment will discuss about the key products/services of Hilton along with tools
and techniques of internal and external sales promotion and merchandising will be described.
Later role of staff in maximizing sales will be evaluated.
TASK 1
1.1 Key components of the product/ service offered by Hilton
Hilton hotels being one global hotel chain offers a variety of services by catering all their
requirements ranging from fitness routine to spending quality time or in conducting their
business it provides a luxury stay to enhance its guests experience and wining their hearts by
offering them unique and distinctive services and products. To stay ahead of its competitors
Hilton offers and Mentioned below are the services offered by Hilton:
Core benefits: The most striking feature of Hilton's products are those that provides
same level of services to all its guests in all its properties across the world it provides risk free
services to its customers providing them with a luxury stay which that provides full value for on
their spending.

Core Products: Core products are the basic products that are offered by Hilton that are the most
important feature of a hotel as it forms the basis for consumers to make a purchase from a
business. Hilton hotels core products involves its various categories of rooms where in customer
stays for a specified time period.
Augmented products: Hilton Hotels offers various membership discounts, high class
restaurants, luxurious rooms and exterior designs and relaxed hotel ambience. It helps in
attracting potential guests and to maintain their loyalty with the hotel
Standard quality: Hilton is a well-known brand when it comes to quality of services and
products. It follows high standard of superior quality in all its products like rooms, suits, pool,
gym and other to attain customer satisfaction (Curwen, Park and Sarkar, 2013).
Accommodation: Hilton is known for its wide range of accommodation packages
comprising family fun packages, military family rate, weekend nights, leisure stays etc. in its
properties across the world which generates maximum revenue for it.
Amenities: Hotel is offering large variety of amenities keeping in mind the requirement
of each and every type of its guests who is travelling for different purposes. For instance, for its
business guest it provides amenities like business centre, meeting rooms, business phone service,
A/V equipment, Xerox, Wi-Fi etc. while for its others guests it has various other services like
laundry, concierge, cribs, fitness rooms, sightseeing tours etc. in most beautiful locations of the
world where hotel have its properties situated.
Facilitating services: Facilitating services helps hotel are expected by customers to be
combined with its core service without any additional charges. that are been provided by Hilton
Hotels, UK to fulfil the expectations of its guests includes:
 Providing any information related to any product or services that is asked by a guest
 Taking orders
 Billing and Payments services
 Safekeeping guests’ valuables
 Consultation services provided in its Spa, fitness centre etc.
 Hospitality including grand guest welcome, providing well come drinks etc.
Supporting Services: Various support services that provided by Hilton hotels UK to enhance
the guest experience includes:
 House Keeping services comprising room attendant, house person and supervisor

 Rooms division staff having a front desk attendant, Valet parking and concierge
 Public area cleaning
 General hotel maintenance team
1.2 Product mix
Product mix refers to the sum total of company's product lines that it offers to its
customers. Hilton being one of the leading brand is known for proving a complete luxury stay to
its guests. Hotel is prominent in carrying out and handling its product line in such an efficient
manner which help them to understand what its customers’ desires for. Thus, hotel introduce
those necessary add owns and make modification in its present services and products making a
customized stay for its clients (Kong and Kim, 2012). To induce its customers to always choose
Hilton and to attract other potential clients it keeps on introducing various special schemes,
offers and services that induce people towards taking its services. Mentioned below is its product
mix:
Core Products: Hilton provides magnificent rooms with other peripheral services like
Extra facilities: Hilton offers various extra facilities like health club for its health
conscious guests with trainer who assists them in their exercise routine. Then there are facilities
like spa, laundry, special facilities for physically challenges people, visual alarm and other
services for hearing impaired, lounge and many other activities that add on increasing the value
of stay for its clients.
Food and Beverages: It offers a large variety of cuisines from all around the world.
Hilton pay special attention in the quality of ingredients it uses in its kitchen and offers various
innovative and delicious dishes as per the taste of its guests. The lounge and bar of Hilton
provides its guests with a variety of exotic alcoholic and non-alcoholic beverages.
Offers: Hilton to induce its sales and to capture attention of its customers keep on
introducing various schemes and provide various attractive packages that are competitive in
comparison to its business contenders.
All these services add on to hotels profits as:
 Services like spa, laundry, visual alarms etc. that are counted in extra facilities helps in
enhancing a guests stay adding on to the value they are paying to stay. It helps in
providing a 'Wow' factor to its guests that ensures their revisit to the hotel.

 By providing a variety of exotic and different food and beverages to its clients helps hotel
to cater the food desires and expectation of customers belonging to different places. This
make them to taste cuisines of varies nations adding them to providing them with
customers’ delight which ultimately lead to guest being loyal to Hilton Hotels.
 Also various offers and membership provided by Hilton hotels to its regular clients help it
to maintain its market share.
1.3 Contribution of market segmentation to improve sales
Market segmentation is the process where in a firm divides market into different
segments on the basis of certain characteristics of its potential consumers. Hilton implement
various strategies in order to design its products and services in accordance to their clientele by
analysing various attributes of market like current trends, customers’ preferences and so on. This
assists hotel to improve their sales by fulfilling the specific needs of its clients to gain customers
satisfaction. Mentione4 s below is the market segmentation of Hilton:
Psycho graphics: In this segment market is divided on the basis of thinki8ng and
understanding of people. Hilton in order to provide customized products and services to its
guests that satisfies their needs observes them and ask their service expectations before
delivering the products or services demanded by them. Thus, it helps Hilton to build its brand
image as a customer centric hotel that directly add ons to increasing its sales (Lapoule and Colla,
2016).
Geographic: In this segment market is divided on the basis of locations where at firm
establishes its base. Hilton plays critical attention while setting up its property. It keeps the
design, interior and other infrastructure in matching with the culture of the local people of that
particular region. Also they adopt local culture in their welcoming their guest, in their cuisines
and other services which they offer to their guest. This enhances it sales as guests gets the feel of
local environment and like to visit again
Demographic: This relates to the factors comprising age, income, gender etc. of the
people. Hilton mainly targets people who are in pursue of experiencing a luxury stay.
Behavioural: It relates to dividing market on the basis of behavioural aspect of a person
such as brand loyalty, frequency of usage, buying patterns, benefits requirements and so on. To

understand the behaviour of customers Hilton analysis the customer dairy to improve or change
product and services. This will surely help them to increase sales (Miao, 2013).
These kinds of different segmentation provide information to management for planning their
operations according the behaviour of their targeted groups. That will help them to increase sales
and profits.
TASK 2
2.1 Discuss the factors affecting the buyer behaviour
Consumers behaviour is a study of analysing how an individual selects a particular
product over various other and what are the underline factors that influences his decision.
Therefore, a firm has to understand all the cumulative factors presented in market that decides
motive of a customer to make a purchase. Thus, knowing that every guest is different having
different aspirations, requirements from one another Hilton analyses all the potential factors that
could affects its client’s decision to choose or not to choose their Hotel and try to manage those
factors to attract and satisfy requirements of all its clientele. Mentioned below are certain such
factors:
Cultural Factors: Culture represents a set of values, behaviour, beliefs, perceptions that
is followed by an individual or a group of person of a particular place. Thus, Hilton to maintain
and enhance its brand value and get higher sales volumes provides standard and high class
services to all its guests (Morrison, 2013). Also, interior, cuisines and welcoming style of all its
properties are inspired from the culture of that particular region so as to give its guests a glimpse
of that place enhancing their staying experience.
Psychological Factors: This is the most prominent factor is shaping consumer's mind to
buy or not to buy a particular product. It basically includes factors like motivation, perception,
morals etc. that induces them to purchase. Thus, while selecting a stay a guest will analyse the
type and quality of services provided by a hotel in comparison to price it offers and core values
and ethics followed by the company, Hilton, provides a world class services to its guests
customized as per their requests and its product line is influenced and designed on basis of
customers’ expectations.

2.2 Assess appropriate advertising media for sales Development situations
Advertising plays very vital role in approaching customer. There is use of many
techniques which are effective to make policies which helps to contact to more and more people.
In hotel industry, there are on season and off season (Nagyová, Horská and Berčík, 2017). So it
is important to work according to demand. There are policies which has to be taken into
consideration and this affects sales in positive way. Managers of Hotel Hilton works for making
changes in their promotional events. There are many techniques such television advertisement,
online travelling sites, travel and tourism clients, etc. There is requirement of factors through
which company can enhance sales and it helps to make customer aware of services. There must
be feedback from customer through which manager came to know about views and corrective
measures must be taken. Hilton hotel use celebrities to advertisement which is effective for
approaching customers. There will use of policies which are efficient to make and this helps to
alter policies. These days there must be trend of customised services which provide satisfaction
to customers and it helps to build trust and loyalty.
2.3 role of external merchandising in maximising customer volumes
Merchandising refers to availability of a variety of products that are display for sale in an
attractive manner to induce interest of customers to make a purchase. It plays an important role
in increasing sales volume of Hilton Hotel by providing its visitors with a number of attractive
offers and happy hours’ schemes (Piller and E Lindgens, 2012). It induces guest to choose Hilton
over others as they get extra benefits and facilities in same price providing extra value to them.
Mentioned below are external merchandising terms used by Hilton:
Offers and Schemes: Hilton offers a number of attractive offers and schemes to its loyal
customers as well as to its other guests to increase its brand image and sales. It offers and
schemes includes unique travel packages, 2X points package, hotel discounts, schemes like
Hilton honour points. Hotel also organizes various fests and keeps on introducing various
schemes on periods of festivals to improve its consumers’ volume.
Personalize merchandising: To make their customers happy and enjoy their stay Hilton
try to meet all expectation of its guests by providing them all facilities like customized cuisines,
beverages and cars as per their demand and so. Also it provides services as per activity chart for

all its visitors and ask their opinion before delivering any service and take feedback to make it
perfect that add on to increasing satisfaction level of customers (Rosenau and Wilson, 2014).
Benefits of external merchandising
 It helps in retaining its ideal consumers and to serve them with better quality services
 It also helps in improving customers’ satisfaction
 Enhance communication with them and to increase Hilton's profits.
TASK 3
3.1 Effect of design and layout on customers spend
The most prominent feature of a hotel that attract visitors to use its services offered is its
interior design, decoration, ambience and layout. Hilton is one of the top brands having an appeal
luxury which displays a perfect amalgamation of traditional features with modern architects in its
lobby, dinning and conference hall. One of the most striking features in all its properties are the
heavy and beautiful chandeliers and wood panelling and the great locations the beauty of which
can be viewed from each of its rooms. Hilton uses fresh colours with contemporary furnishes in
all its guest rooms decorated with wall painting and flowers that appeals its high class and
business clientele that like luxury environment. Other facilities like gym, well design pools etc.
add on to increasing its presentation and interior. All these world class design, quality of life
experience helps Hilton to attract customers all around the world to prefer stay in Hilton.
The design and layout of Hilton greatly impacts guests experience. For instance, facilities
like Wi-Fi, projects etc. and large conference halls satisfies the requirements of its business
clients. On the other hand, to its magnificent rooms, spa, health centre etc helps in providing
satisfaction to its clients that are on leisure trips
3.2 Review and evaluate internal merchandising materials of your selected organisation
Internal merchandising can be described as promoting products and services within
periphery of hotel which proves to be one of the most efficient tool to increase its customers
base. To enhance and manage its brand image Hilton UK pays special attention to maintain
coordination and efficiency in presenting and delivering all its services to its guests. It includes
welcoming visitors, table having tent cards, cash jackets and tissue printed with message about
hotels' value and maintaining cordial relation and communication with guests. Also it pays a
special attention to its menu and involves a variety of healthy and delicious cuisines that satisfies

its customers (Ščeulovs and Gaile-Sarkane, 2014). For increasing its occupancy rates and
maximize its profits Hilton establishes a strong relationship with people who do the sales
promotion for the hotel in the market. Also hotel through its performance appraisal system
analyse those employees that are having good interpersonal skills and are in position to motivate
guests for an upgraded purchase and are given special training and incentives to encourage their
efforts. Thus, internal merchandising assists Hilton to direct delivery of services and products as
per customers need so as to retain them. The internal merchandising helps in enhancing its sales
volumes by providing customers with unique facilities like fitness centre, parking facility,
provide high speed internet access, and etc. Also, internal merchandising serves as an element of
competency for Hilton that helps hotel to get an edge over its rivals.
3.3 Evaluation of different promotional activities for different scenario
Sales promotion is an element of promotion mix that includes various communication
activities such as advertising, direct marketing, personal selling and public relations that all assist
a firm to provide value added or incentives to its consumers, retailers, whole sellers etc. and to
induce then to purchase them. Hilton offers various different services at different occasion to
induce and enhance its sales by capturing attention of its target audience. For this Hilton makes
use of various tools and techniques of promotions comprising various schemes and offers as per
seasons and market conditions. Mentioned below are various certain tool used by Hilton to
promote its brand:
Discount vouchers or coupons: This is an attractive alternate for the price cut. Hilton to
induce its sales volumes distributes vouchers and coupons to selected market section, for
instance its gives vouchers to its shareholders as a form of additional shareholder benefits or to
its travel agents who can redeem these vouchers or coupons in local stores, restaurants, clubs or
could use them at any Hilton hotel to cover their room charges, get drinks at bar, free spa service
or round of golf. The coupons/vouchers may be redeemed by guests either by purchasing hotels
products or of those businesses with which Hilton has deals.
Rebates and Price Discounts: Rebates and price discretion plays critical role in
enhancing and inducing sales of a hotel. Hilton hotels offers various price rebates such as half
price accommodation to children during off seasons or when guests books during the first two
weeks of operations as a trail. This helps Hilton to increase its occupancies even in shoulder
season or low season. Also Hilton provides various offers such as 15% off to honour its members

or for inducing travellers to pre book it gives them $50 hotel reward which customers can
redeem on their meals, spa or any other services that are been provided by hotel. Also, it gives
discounts or price rebates on bulk or group booking by various companies or travelling agencies
where in Hilton hotel provides various escape packages that involves various complimentary
services such as daily breakfasts, premium Wi-Fi and late checkouts. Also Hilton offers special
military family rates where in it provides discount of 10% on leisure stays to presently working
and retired military members and to their families.
Free Accommodation: Hilton for its sales promotion provides free accommodation to
one or more person of the guest's party. In this basically there are three variants of this form:
twin room occupancy for single room price, free accommodation for children below 6 years and
bonus accommodation offer which are generally given to large tourist groups.
Premiums: It includes free gifts such as bottle of wine, a meal, travel concessions, games
for children, flowers, confectioneries, club membership, theatres tickets etc. Another type of free
premiums are those which are been purchased and are only giving to guests complying with
certain qualification. Hilton make use of this activity of sales promotion as consumers respond to
this more favourably as it shows instant gratification towards the guests. Also it provides
personalized monogrammed accessories such as bathrobes, pillows etc. with name initials to its
most premium guests such as high profile celebrities, politicians, entrepreneurs etc.
Privileged customer’s services: Hilton is very specific when it comes to attending and
treating its guests belonging to various categories. Hilton offers particular classes of clients
privileged and higher than normal standards of services for its highly esteemed and premium
guests. Under this schemes Hilton provides various membership cards such as Tier Blue, Silver,
Gold and Diamond. Thus, Hilton provides facilities like handling reservations, expedited check
in, check outs, automatic upgrades to superior’s standards rooms etc. that Hotel communicate to
its premium members through closed circuit newsletter.
Bonus Commission: This is another significant technique used by Hilton Hotel which is
specially offered to travelling agents. In general Hilton hotels provides a commission rate of 10%
agents however in special scenarios and situations for instance on occasion of opening new
property, launching new products for the first time, Hilton often make small modification in its
commission structure where in it hike up agents’ commissions to 12%-12.5%. This method is
adopted to induce intermediaries to generate higher sales.

Sales force Promotions: Hilton sales promotion team after analysing finds out that main
issue for management is to design a promotion that rewards appropriate people, thus these
techniques aims at encouraging Hilton’s own sales force staff as they play critical part in dealing
with the clients and thus are major factor in its sale promotion. Under this scheme Hilton rewards
all its staff who shows higher performance and are best as per hospitality standards established
by hotel to deal with is guests. Under this, Hilton to encourage its employees top give their best
performance so as to attain customers delight besides their satisfaction provides them various
benefits. Some most prominent ones include:
Bonuses: They are used by Hilton to award its hotel staff for attaining a budgeted sales
figure which helps in increase their motivation level and to give higher standard performance.
Enhanced commission rates: These could be used to induce sales of a particular product or for
attaining a specific target such as converting a pre-determined portion to a potential. For
instance, Hilton used this scheme when ist wine of the month was not selling in both in its
restaurants and room services. Thus improve its sale management introduced points scheme
where in 10 points are to be rewards to a particular staff member if wine is sold from 6 p.m. To 6
a.m. and 30 points if it’s sold between 6 a.m. To 6 p.m. Under this a vintage bottle of
champagne is to be awarded on monthly basis to winning room service staff member. Thus, it
resulted in 10% improvement in sales of the wine.
Advertising: Hilton advertises its various discount offers, schemes and packages by
making use of various print, online and electronic media. It includes using TV commercials,
internet, sponsorship, newspaper, magazines etc. for creating awareness about product and
services it offers and to reach its mass audience by broadcasting information related to these. It is
one of the most effective and attractive tool to communicate information to large audience and to
influence visitors all over the word to come and experience the world class products and services
that Hilton offers.
Sales promotion: - Hilton offers various discount coupons, family tour packages, honour
point schemes, organize various events like seasonal fests, cultural activities and parties to attract
its customers to make a visit and avail these services which increases hotel's sales and brand
image (Senanayake, 2015). Also hotel offers various membership cards to its customers.
Possession of these cards allows guests to have access to some most premium services,
discounted prices and other benefits.