A Detailed Report on Hospitality Sales Development and Merchandising

This report examines hospitality sales development and merchandising, focusing on the Langham Hotel in London. It analyzes the contribution of product mix elements (width, depth, and consistency) and market segmentation (demographic, psychographic, geographic, and behavioral) to sales and profit. The report further explores factors influencing consumer behavior, including Maslow's Hierarchy of Needs and the stages of the purchasing process. Additionally, it evaluates personal selling techniques and the influence of operational design on sales revenue, providing insights into strategies to maximize profitability and customer satisfaction within the hospitality sector. The report incorporates various marketing strategies like pricing, promotion, and service offerings, along with a detailed analysis of market segmentation and consumer behavior to gain a competitive edge in the hospitality industry.

Running head: HOSPITALITY-SALES DEVELOPMENT AND MERCHANDISING
Hospitality Sales Development and Merchandising

HOSPITALITY-SALES DEVELOPEMNT AND MERCHANDISING 2
Table of Contents
Introduction.................................................................................................................................................3
Task A.........................................................................................................................................................3
1.2 Contribution of Hotel products mix into sales and profit...................................................................3
1.3 Market segmentation contribution in sales.........................................................................................6
Task B.........................................................................................................................................................7
2.1 Different factors which influence the consumer behavior................................................................11
Task C.......................................................................................................................................................14
4.1 Evaluation of personal selling techniques........................................................................................14
4.2 Influence of operational design on sales revenue.............................................................................16
Conclusion.................................................................................................................................................17
References.................................................................................................................................................19

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Introduction
Langham Hotel, London is a leading company in the hospitality industry of UK. This firm is
recognized due to its facilities, services, and innovative products. Hotel is located in the center of
metropolitan in Marylebone. It is enclosed by milestone and museums. Moreover, there are
different services offered by this hotel which is more productive and influences more customers.
Langham Hotel, London has an event and conference organization room, appreciated library for
the high class of people and luxury life people. In this way, this report demonstrates regarding
the product mix elements, and market segmentation contribution to maximize sales revenue. This
research report also illustrates the factors affecting consumer behavior and influence of
operational design on sales revenue.
Task A
1.2 Contribution of Hotel products mix into sales and profit
The product mix is also recognized as product assortment which refers to the whole number of
product lines that a corporation delivers to its customers. The three aspects of product mix entail
depth, width, and consistency (Bowie, et. al., 2016). It is discussed below:
Width
The width related to product mix defines the number of a product line that a firm sells. For
instance, if a corporation has different product lines then its width of product mix is two.
Langham Hotel, London usually has a wide product mix. It is more effective for this hotel to
start with certain basic products and develop market share. Thus, the technology of corporation
may allow the organization to diversify into other industries and create the width related to
product mix (Gehrels, and Blanar, 2013).
Depth

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The depth of product mix defines the whole amount of deviation of each product. In this way,
deviation in product mix of Langham Hotel, London shows the flavor, size, and other distinctive
characteristics. For instance, if Langham Hotel, London sells three sizes and two flavors of the
product then that particular brand of this product has a depth of six (Chandiok, and Sharma,
2017).
Consistency
Product mix consistency demonstrates that how closely associated product lines are to one
another with respect to distribution, use, and production. A product mix of Langham Hotel,
London may be consistent in distribution however it is enormously distinct in use. For instance,
Langham Hotel, London may sell its food products in restaurants. But, one product could be
edible and other could be not. The consistency of these products could be varied in the hotel
(Gurol, and Bilen, 2015).
Product mix contribution to increasing sales and profit
Product mix contributed to gain revenue and profit of Langham Hotel, London that is discussed
as follow:
(Sources: Jackson and Ahuja, 2016).

HOSPITALITY-SALES DEVELOPEMNT AND MERCHANDISING 5
Place and distribution:
It facilitates services to effortlessly access the products. Langham Hotel, London is located in the
center of Watford city which area is nearest to outskirts and hill station. This hotel uses direct or
indirect distribution technique to reach more customers. Under direct technique, Langham Hotel,
London uses sales through hotel sales staff, hotel website booking system, banner advertisement
and global distribution system. In the indirect technique, the company can maintain good liaison
with the planner of event and travel agents (Steenkamp, 2017). The hotel can execute the online
travel portals and emphasizes on promotional activities such as making public relation and mail
campaigns.
Price strategy
Langham Hotel, London influences customer by offering devalue and discounting services on
products. It also focuses on a certain class of people such as luxury class, business class and
special discount for government workforce at weekend (Kanagal, 2014).
Promotion and communications
Sales and marketing method is implemented by the recognized Langham Hotel, London to
interact with targeted customers. There is a different type of communication channel is used by a
company such as a commercial advertisement, social media like Google + page, YouTube,
Facebook, Twitter, and websites and billboards (Wearne, and Morrison, 2013).
Service offered
It also delivers high-class services to their targeted customers. It has luxurious rooms as well as
trained staff to make good liaison with the customers. It emphasizes not only old consumers but
also penetrate new customers with respect to products and services. Langham Hotel, London
facilitates different kinds of banqueting rooms, product guest room, demonstrates check-in and

HOSPITALITY-SALES DEVELOPEMNT AND MERCHANDISING 6
check-out facilities, parking services and conference, and seminar rooms (Jakada, and Gambo,
2014). It also facilitates Wi-Fi services, video conferencing, and internet connectivity to
persuade business class people.
1.3 Market segmentation contribution in sales
It is analyzed that accessibility, sustainability, and measurability are an essential action for
segmenting the market. The market can be segmented on basis of geographic, cultural,
demographic, behavioral and psychographic reason. Market segmentation can influence the
consumer behavior and purchasing power. Sub-division of the market is required to gain profit
and sales (Ailawadi, and Farris, 2017). Langham Hotel, London segmented its market as per the
various factors that are discussed as below:
Demographic factor:
The company should consider different services to their potential customers for developing
Langham Hotel, London such as income level of employees. In this way, the company can
provide 40% discount to government employees at weekend, age-wise segmentation and can
attract luxury and business class people by delivering the product as per their needs. Another
factor is social motives of guest, individual requirement, expectation and a behavioral segment
that can be used by Langham Hotel, London to segment the market hence it will contribute to
enhancing the profit and sale (Low, et. al., 2015).
Psychographic Segmentation:
Under this category, Langham Hotel, London can segment the market as per the lifestyle of
customers such as attitude, notion, views associated with products, and services. In this way, it
can set the price and room services as per the customer’s needs (Wilson, and Shailer, 2015). As a
result, it will contribute to gain sales of the Langham Hotel, London.

HOSPITALITY-SALES DEVELOPEMNT AND MERCHANDISING 7
Geographic Segmentation:
Langham Hotel, London can also categorize the market into national, regional and international
wise for capturing a large number of customers. There are different factors that should be
considered by hotels like business, occupation, income, and generation. It will contribute to
increasing the sales (BURGHELEA, 2015).
Behavioral Segmentation:
Langham Hotel, London can also target the customer as per their behavior associated with
products and services such as parties and marriage function in the hotel. Hence, a large number
of customers attracts with respect to products and services (Leonidou, et. al., 2013). Langham
Hotel, London can emphasize on the segment with loyal class however it should facilitate
discount to public sector employees and government employees on affordable price at weekends.
It can also offer other services like a conference room for luxury class, gym, and guest room with
video and internet conferencing services (Wood, 2017).
Task B
Maslow’s Hierarchy of Needs theories
(Sources: Wong, and Wickham, 2015).

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Physiological Needs
The basic need could be delivered by Langham Hotel, London to their customers. This need is
the base of the pyramid and includes different factor like air conditioning, heating, facilities and
Wi-Fi. Langham Hotel, London should focus on considering these factors at initial level as it
would be beneficial to meet the need of customers (Patiar, 2016).
Protection and Security
This is the second level in which Langham Hotel needs to focus on providing a guarantee of
security and protection. Maslow takes into consideration about the security of morality and body
between others. In the physical element, the hotel can entail the CCTV facilities, first-aid kits,
safe-boxes, relationship with providers, and lifeguards as it contributes to enhance their resources
and increase revenue (Wong, and Wickham, 2015).
Love and Belongingness
This level entails the need for family, friendship, and intimacy. It is associated with the ability of
an individual to develop and create relationships. Hence, in this level, Langham Hotel, London
can integrate all aspects of customers and feeling of being acknowledged by rest of people
(Davis, et. al., 2013).
Esteem
The fourth level of the pyramid of Maslow depicts the needs associated with a feeling of being
appreciated and increase acknowledgment. There is two version of need such as the need for
respect from others i.e. lowers version and need of self-respect i.e. higher version. The higher
version entails need of a person like confidence, self-recognition, self-esteem, independence,
freedom, and achievement. The lower version is associated with needs to be acknowledged and
valued by other people (Gordon, and Brezinski, 2016). It facilitates sense to an individual for

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making a contribution towards society. These needs are worth, status, self-esteem, control,
recognition, and consideration.
Self-actualization
This level is associated with character and idea of hotel’s manager. The requirement incorporated
in this level is self-actualization in terms of personal growth and achievement. It depends on the
personal drive and attitude of a person in strength. The Langham Hotel, London should cover
these needs in their strategy to retain the existing customers (Brito, and Harkiolakis, 2017).
Stages of Purchasing Process
Stage 1 − Needs and Requirements
This is the first step of buying procedure in which consumer address a problem and requirement
that needs to attain. The needs could be created through both external and internal stimuli.
Under this stage, the marketer should understand the customers to assess the kind of needs, what
they want to buy, and how they lead the consumers with respect to specific products and services
(Rhou, and Koh, 2014).
Stage 2 − Information Search
Under this phase, customers identify more information. The consumer may emphasize on active
information search. The consumer can pool the information from different sources such as
personal, public experiential and industrial sources. In this way, personal sources include the
neighbors, family, acquaintances, and friend. Along with, public sources entail the consumer
rating, mass media, and organization. As well as, experimental sources entail the examining,
handling and using the products and services. Industrial sources incorporate the salespeople,
packaging, advertising, and dealer (Perera, 2014).
Stage 3 − Evaluation of Alternatives

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Under this stage, the consumers search different data to assess best brands from different
alternatives. In this way, it can be stated that how the consumer thinks regarding assessing
purchasing alternatives is relied on the individual consumer and particular purchasing
circumstances. In certain phenomenon, customers use rationale thinking while in other
circumstances, customers do little assessment rather than buying the product as per their desires
and perceptions (Gurol, and Bilen, 2015).
Stage 4 − Purchase Decision
Under this stage, the consumer buys the products and services. A consumer will purchase their
desired products; however, there could be two factors such as purchase decision and purchase
intentions. The first factor is the outlook of people and the second factor is unanticipated
circumstances factors. The customer may develop their purchasing decision on the basis of
different factors like usual price, usual product benefits, and usual income (Sitawati, et. al.,
2015).
Stage 5 − Post-Purchase Behavior
Under this stage, the customers take step after purchasing. It relies on their dissatisfaction and
satisfaction level. These satisfactions level also rely on the association between performance of
product and expectation of consumer. In case, the company does not consider the expectation of
customer within their products and services then it will disappoint to them. In contrast to this, in
case, the company meets the expectation of customers through offering their desired products
and services then it will satisfy to them. Along with this, if the company exceeds the expectation
of customers then it will happy to them (Morosan, et. al., 2017).
2.1 Different factors which influence the consumer behavior
There are several factors which affect the behavior of consumer:

HOSPITALITY-SALES DEVELOPEMNT AND MERCHANDISING 11
(Sources: Morosan, et. al., 2014).
Culture factor:
Culture is the essential element of society which is essential to comprehend the wants and
behavior of customers. It transmits ideas, message value, and feelings that can be lucrative for a
person. There are different tribal groups, geographic, and ethnic groups which comes under
subculture. The hotel culture is emphasized on high-quality and conduct ethical behave with
every sort of customers (Rogers and Davidson, 2015). This factor considered different sub-
element which is discussed as below:
Culture
Culture is the part of Langham Hotel, London and is the key cause of conducting purchasing
behavior. The persuasion of culture regarding purchasing behavior may differ from nation to
nation; hence sellers should be cautious in terms of assessing the culture of different regions,
groups and nations (Witt, et. al., 2013).
Social Class
Each society has different kinds of social class which is essential for marketing because the
purchasing behavior of the customer in a specific social class is homogenous. Therefore, the
company should focus on a different social class to make marketing activities (Utami, and Ryadi,
2013).

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Social factor
There is a different social factor like family, reference groups, role and status which influence
the customer behavior. It facilitates different sort of facilities to their customers such as dining-
out practices, travel channel and discount at weekends to government workforces. Moreover, the
Langham Hotel, London can target the loyal customers by conducting meeting and marriage
party (Jayawardena, et. al., 2013).
Reference groups
The reference group is a part of creating the attitude and behavior of a person. The impact of
reference group may differ across products and services. For instance, if the goods and services
are tangible such as car, shoes, and clothes then it persuasion of reference group could be high
(Elbanna, et. al., 2015).
Family
Buyer behavior is highly persuaded by a member of the family. Hence, vendors are making
efforts to address the role and impact of the wide, husband and children. In case, judgment of
buying a specific product and service is highly persuaded by the wife then the seller will try to
target the women in their advertisement. But, it is identified that purchase of role can be changed
with transforming lifestyle of the consumer (Utami, and Ryadi, 2013).
Personal factors:
There are distinct factors which influence the attitude of customers. These are income level,
economic situation, self-concept, lifestyle, self-concept, age, and personality. Along with this,
the lifestyle of a person is associated with demographic, and opinion factor in which hotel can
provide a discount to government workforces at weekend (Morosan, et. al., 2017). Following are