Sales Development and Merchandising Strategies at The Ritz London

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Sales Development and Merchandising
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................4
Part 2................................................................................................................................................6
Part 3................................................................................................................................................9
Part 4..............................................................................................................................................11
Part 5..............................................................................................................................................12
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
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Introduction
Sales development can be referred to the activity of concentrating on the front end of the cycle of
sales; that is setting of demonstration and appointments, which are qualifies in nature. The
purpose of this activity is to identify, link as well as qualify different concepts and ideas. On the
other hand, merchandising can be referred to the activity of promotion of sales of product at
retail, through implementation of different strategies such as display techniques, pricing, free
samples, attractive offers and many others. This study will explore the various aspects regarding
sales development and merchandising activities implemented for the accommodation in the Ritz
London. Located in London, the hotel was established in the year 1906 (Theritzlondon.com,
2019).
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Part 1
A. Evaluate the key components of your chosen product. (AC1.1)
Accommodation can be referred to the place where one lodges temporarily (Tussyadiah, 2016).
It is the key product of a hospitality related organisation, such as the Ritz London. The key
component of this product is discussed as follows:
Characteristics
The Ritz London provides five - star accommodations to its customers, which lavish rooms and
vintage furniture. Additionally, the hotel offers different kinds of accommodations, starting from
signature suites, normal suites to ordinary rooms (Theritzlondon.com., 2019).
Features
The hotel is located in the heart of the city of London, which has assisted the company to attract
many travellers. There are four different types of signature suites in the hotel, with varying rates.
Additionally, there are five different kinds of normal suits as well, the rates of which vary well.
The ordinary rooms, which the company offers are of four types with varying price ranges
(Theritzlondon.com., 2019).
Benefit
The benefit of having such accommodation provisions is that, the Ritz London provides its
customers with the experience of authentic English culture, which in turn has assisted the
company to attract many travellers. This has resulted in the establishment providing spectacular
service for a hundred and ten years.
Lifecycle of the product
The lifecycle of the accommodation in the Ritz London has three phases. The first phase is
planning where the number of required furniture and other necessary provisions for the hotel
rooms are determined. The next phase is installing the shortlisted furniture and other provisions.
Corresponding to that is the final step, which is making the rooms ready for the travellers for
lodging.
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The four key components of the accommodation in the Ritz London are:
 Location of the place
 Five star rating of the establishment
 Availability of different options and provisions
 Provision of English cultural experience
B. How is each component of that product contributing to the sales and profit? (AC1.2)
The components of the product, which is the provision of accommodation in the Ritz London,
contribute individually to the sales as well as profit of the organisation. Being located in the heart
of the city of London, the hotel is easily accessible attract a huge number of tourists. The five -
star rating of the establishment has assisted it to create a reputable brand image, which in turn
has assisted the hotel to earn customer loyal that has led to increase in sales and profit.
Availability of different options and provisions in terms selection of rooms type and other
services also appeals to the tourists, which results in increase in sales and profit. In addition to
that, the English culture experience promised by the Ritz London acts a unique selling
proposition for the company. Therefore, this component contributes to the sales and profit of the
organisation.
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 maximisation. (AC1.3)
A market segment can be referred to the group of people who possess one or more traits (Cross
et al., 2015). The best market segment for the provision of accommodations in the Ritz London
will be the individuals belonging to the higher income groups. Since the company is a five – star
hotel, with a positive brand equity, which has a wide variety of suites, it will be very appealing to
the people who are used to luxurious lifestyles (Weinstein and Cahill, 2014). In addition to that,
the decor and ambience of the hotel also reflects the upper-class vibes. Therefore, the above-
mentioned market segment will assist the company in maximisation of sales.
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Part 2
D. Define “Buyer behaviour “and discuss at least two (2) factors that influence customers’
behaviour in that organisation. (AC2.1)
Buyer or consumer behaviour can be referred to the study of the process or method that is
involved at the time when an individual person or a group select, buy, utilise or dispose of
commodities, such as products, services, concepts, ideas, experiences and others for satisfying
requirements and demands (Saleh et al., 2014). The two key factors, which affect the behaviour
of the consumers or customers of the Ritz London, are cultural factors and technological
provisions, which are discussed as follows:
Cultural Factor
In the hospitality industry as well as the Ritz London, cultural factor is one of the most
significant elements in deciding consumer behaviour. It influences the perception, value as well
as the behaviour of an individual (Rani, 2014). For instance, one is used to staying at nice high
rated hotels; one follows the same pattern as one becomes older. Therefore, cultural factors and
aspects are extremely important for the Ritz London, as the establishment will require
considering the tradition and habits, which affect the selections of the potential clients at the time
of evaluating the customer requirements for providing suitable accommodation.
Technological Provisions
Technological provisions include provision of Wi-Fi, automated check - in and check - out,
entertainment systems and others as such. Wi-Fi is one of the most influential technologies that
have affected the behaviour of the customers in the Ritz London. An internet connect that is
reliable provides the guests with easy and quick access to every kind of information they require.
In addition to that, technological provisions such as automated check – in and check – out
facilities helps guest to avoid waiting at the reception desk for acquiring the room key.
E. Make a checklist of Internal Merchandising materials and evaluate their effectiveness
making recommendations where necessary. (AC3.2)
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Internal merchandising can be referred to the utilisation of various internal promotional items for
promotional purposes (George, 2015). The internal merchandising items of the Ritz London are
discussed as follows:
The Ritz London
Internal Merchandising Materials List Evaluation and Recommendation
Wi-Fi Provision In the present day, the provision of Wi-Fi is an
extremely element of internal merchandising in
every hotel. This facility has been effective in
attracting more guests, and thus increasing
profit.
Room Service The hotel provides excellent room services to
all of it guests, which help the organisation to
provide enhanced customer satisfaction and
thus is an appealing factor to the guests.
Entertainment System The hotel provides facilities of sky TV and sky
sport to the guests for entertainment purpose
(Theritzlondon.com, 2019). The company
improve this internal merchandising by
providing the guests with facilities such as
home theatres and others.
Table 1: Internal Merchandising of the Ritz London
(Source: Created by the learner)
What is External Merchandising and how does it influence the customer turnover? You
will have to make a checklist and recommendations as well. (AC2.3)
The Ritz London
External Merchandising Materials List Influence on Customer Turnover &
Recommendations
Complimentary Breakfast This external merchandising material helps the
organisation in gaining enhanced customer
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satisfaction
Restaurant Piccadilly The guests staying in the hotel can dine in the
Restaurant Piccadilly, which has an antique
English decor, providing the guests with an
English cultural experience.
Gift Shop The hotel has a gift shop, which allows the
guests to purchase different types of souvenirs
to remember their journey. The organisation
can offer the guests personalised gifts, as it will
attract more customers.
Table 2: External Merchandising of the Ritz London
(Source: Created by the learner)
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Interior Decor
hotel rooms in the Ritz London should be traditional mediums such as television along with the modern digital mediums such as social networking sites, f
contemporary digital mediums will align with the vibe of the Ritz London. In addition to that, it will also appeal to the older generation who are looking fo
Contemporary Technological Provisions
ing media for the marketing and promotion of the contemporary technological provisions should be modern digital mediums such as social networking we
nnection, automated check – in and check – out though digital mediums such as social networking websites, and cyber marketing, will appeal to the young
Part 3
G. Suggest and justify the most appropriate advertising media for each product to
maximise sales. (AC2.2)
Table 3: product 1
(Source: Created by the learner)
Table 4: Product 2
(Source: Created by the learner)
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H. For each of the above two (2) selling scenarios, suggest promotional activities that
should be used by the chosen organisation and highlight the pros and cons. (AC3.3)
The promotional activities, which should be implemented by the Ritz London for marketing and
prompting its interior decor of the hotel suites and rooms include contact various marketing
consultants and advertising agencies. These professionals would create and develop appropriate
advertising contents for the Ritz London, to be air on traditional mediums such as television and
newspaper by assessing the demands and expectations of the potential clients. The pro of these
activities is that it will maximise sales however, the con is that it will not be cost effective.
The promotional activities that should be implemented by the concerned organisation for
marketing and promoting the contemporary technological provisions include the same activities
mentioned above. The company will require advertising agencies that will evaluate the
requirements and demands of the potential clients and develop advertisement content
accordingly to be aired on modern digital platforms (Tiago and Veríssimo, 2014). The pro of
these activities is that it will reach clients all over the world; however, the con is that the
customers form older generation will be excluded.
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Part 4
I. How are the design, layout, and operational functioning influencing the sales revenue?
(AC3.1 – 4.2)
The design, layout, along with the operational functions of the Ritz London affects the sales
revenue of the company. Design can be referred to the pattern, which was followed at the time of
establishment of the company (Yu et al., 2014). The design of the concerned organisation affects
the sales revenue of the company. The decor of the hotel is classic English cultural, which
portrays authentic English experience thus attracts more guests, which influences the sales
revenue of the organisation in a positive manner.
On the other hand, layout can be referred to the manner in which the segments of an element are
laid out or arranged (Zhou et al., 2014). The interior arrangement of the hotel, as mentioned
above, portrays a vintage English cultural look, it also provides the guests who stay at the Ritz
London a complete experience of the English culture. Therefore, it can be stated that the layout
of the company affects the sales revenue of the entity in a positive manner as well.
The operational functions of the Ritz London can be referred to the activities executed by the
organisation for carrying out its business. The operational function of the above mentioned
organisation include allocating various tasks to the workforce, providing different services to the
guests, managing the waste materials, utilisation of the provided resources effectively, and others
as such. The quality of the services provided by the hole affects its sales revenue, as it is directly
connected to customer satisfaction. In the case of the Ritz London, the operational function have
influenced the sales revenue effectively as the hotel has been in business successfully for more
than a hundred years.
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Part 5
J. Assess the personal selling techniques used by your chosen organisation and suggest
ways to improve them. Use references to support your suggestions. (AC4.1)
Personal selling techniques can be referred to the strategies implemented by an entity for
maximising sales (Kubeš and Rančák, 2018). One of the personal selling techniques of the Ritz
London includes up selling, implementing which has assisted the hotel to increase the amount of
revenue it generates. The company through this technique sells the products which have higher
process for instance, it signature suits. In addition to that, another personal selling technique of
the concerned organisation is cross selling. Through this technique, the Ritz London informs its
guests regarding a product, which is connected to the main product it is aiming at selling
(Sharma and Sharma, 2015). For instance, the people who book the hotel rooms in the company
can access the food and beverages that are kept in the mini fridge.
These techniques can be improved by application of different methods. Firstly, the company
requires comprehending the customer psychology that is the buying moods of the guests.
Moreover, the workforce of the organisation has to know about all the details of the products
they are selling in the process of up selling. Additionally, the organisation can recruit
experienced sales representatives who will assist in making the selling techniques more effective.
K. To make these improvements or changes in the sales force, propose a sales training
programme covering at least two (2) key principles. (AC4.3)
Training process Evaluation
Assessment of training requirements For increasing sales and teaching the manner
of approaching towards the guests
Preparation of training plan All the newly recruited staffs will be trained
for a period of three months
Development of training goals Things to be learnt by the newly recruited
staffs, such as required skills and competence
for providing premium quality customer
service
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