Sales Development and Merchandising Report - Ritz Hotel Analysis

This report delves into the concepts of sales development and merchandising within the context of the hospitality industry, using the Ritz-Carlton Hotel as a case study. The report explores the contribution of product mix and market segmentation in maximizing sales and profit, analyzing how the hotel differentiates itself through unique services, including room amenities, dining options, and future ventures like yacht facilities. It examines the depth and breadth of the product mix, highlighting how various services cater to customer needs and desires. Furthermore, the report analyzes market segmentation strategies, including psycho-graphic, geographic, and behavioral approaches, to tailor products and services to specific consumer groups and increase market share. The report also discusses various factors affecting buyer behavior, such as social, psychological, cultural, and personal factors, and how these influence customer purchasing decisions within the hotel. Finally, the report concludes by emphasizing the importance of sales development and merchandising in enhancing revenue and maximizing earnings through effective product promotion and customer engagement.

Sales Development and
Merchandising

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK A...........................................................................................................................................1
1.2 Contribution of product mix to sales and profit....................................................................1
1.3 Contribution of market segment to maximise sales..............................................................2
TASK B...........................................................................................................................................3
2.1 Discussion of various factors affecting buyer behaviour.....................................................3
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
In current business world, the concept relating to getting more sales and maximising
profit by attaining more and more number of customer is known as sales development and
merchandising (Hayes and Nenemeier, 2019). Companies either selling product or providing
services have a specific plan to increase the number of customer by targeting new market
segment and developing advance features in product and services. In this report Ritz hotel is
selected to better understand the concept of Sales development and merchandising.
In this project, contribution of product mix and market segmentation to maximise sales
and profit are discussed. Report also describe factors affecting buyer behaviour.
TASK A
1.2 Contribution of product mix to sales and profit.
One of the most luxurious hotel in the world is The Ritz-Carlton that offer supreme,
memorable and unexpected experiences to each and every customer visiting from all around the
world. The Hotel have the main aim to offer the fine professional and personal services in
hospitality which can makes customer to enjoy the cultured atmosphere and warmth while their
visit. Management of Ritz hotel is continuously trying to differentiate themselves from other
hotel offering the number of unique services. The Ritz-Carlton given spacious rooms,
comfortable accessories and private bath and they also continuously working to upgrade their

services by developing more comfort within room and catering services, environment and
cheerful ambiance. The respective hotel is also adding attention towards widespread flourishing
in public fields, banquet halls, meeting rooms, gourmet kitchens, spa treatments and other
accessories such as pay-per-view car service, tour guide. Recently to meet the revolution of
hospitality industry the Ritz-carlton is planning to move their services and offer Yacht facilities
by 2020 (Koontz and Gibson, 2012). This is boost the sales of hotel because Yacht is capable to
have 300 guests with around 150 sweet suites, private terrace and other several of luxury
services.
Length of the product mix
The hotel industry has innovated by Ritz hotel as they are providing luxurious quarters,
pleasant spaces, personal baths and expansive flower arrangements in common areas, fine
dining, cafes, spas, pool clubs, golf courses, dining rooms, meeting centres, Wi-Fi, health
facilities, multi-room fridge, free meals service, pay-per-view car services, 24-hour front desk
and travel guides. Total products and services are closely related with the needs and desire of
people visiting in Hotel, because the offer goods can easily fulfil the requirements of customer.
Product mix at Hilton on park lane
The number of product and services is managed by the management of hotel in a certain
way as to enable them to recognize and nourish the client's degree of willingness. This entire
product mix of Ritz-carlton hotel is very much essential that support to increase the overall sales
and profit. There are number product line such as food and beverages, conference and banquets
services, amenities etc. Company offer wide bedroom with comfortable adjustment as per needs,
private bathtubs with Jacuzzi and large fresh flowers in public areas, gourmet cuisine,
restaurants, spas, bars, beach clubs, golf course, banquet halls, conference halls, Wi-Fi
connection, medical facilities, refrigerator in rooms, free room service, paid car services, 24-hour
front desk services and travel guides.
Depth of the product mix
Ritz Carlton are often looked at all the distinguishing features inside their brand and their
guests have also appreciated an unique spa environment that requires a rare mix of local tastes
and distinguishing rivalry. Recently, with the growth of the digital platform, Ritz-Carlton has
released the software that enables guests to ensure their appointments are accessible for spaces,

halls and restaurants which can order rental car service and can checked out at any time for app
users.
Since these services attract large number of visitors that have a direct impact on the overall
profitability of Hotel. The most special service of Ritz-Carlton is that they plan to organise a 7-
10-day journey through lovely places and their present hotel chain is a dream place for weddings
as well as other festivities.
1.3 Contribution of market segment to maximise sales.
Market segmentation indicates the hotel must concentrate on its potential customers that
can buy high-value facilities that directly aids to maximize sales and earn profits (Lea-
Greenwood, 2010). Market segment is one of the core department in business that helps in
grabbing information regarding various types of consumers and identifying their needs. Ritz is
working in hotel industry ans uses strategies to identifying potential consumers for their
business. This helps them in designing their products and services as per consumers requirements
and help them to grab large market share. Ritz initiated segmentation of their consumers on the
following basis-
 Psycho-graphic: In this segmentation emphasis is provided by hotel Ritz on the
observation of their visiting consumers and asking them regarding their requirements for
services offered. Asking expectation level of services before serving to consumers helps
in providing goods services as per consumers requirements (Psycho-graphic
segmentation, 2019). This will also helps in enhancing image of hotel to consumers so
that more and more visitors will come to comfort the services offered by Ritz-Carlton that
helps to maximise the sales during specific time frame.
 Geographic: Culture of the consumers who are visiting to hotel Ritz is very important to
be considered while providing them required services. When hotels treat visitors as per
their culture a good image of hotel is created and helps in enhancing sales of the hotel
Ritz in long run. It is important to segment an audience by region if Hotel want to
advertise an advertisement to individuals in a particular area, like marketing services
developed for that specific region (Link, 2012). For example Ritz hotel provide special
room that maintain warm temperature to the colder place so that people can enjoy,
similarly they provide opposite services to hotter places. This would help to increase

customer base in specific country so that sales for that period gets increased, thus
resulting in rising overall profitability and popularity.
 Behavioural: Understanding the consumers behaviour that are visiting hotel Ritz will
bring improvement in products and services offered to them. If the services are met as per
desire and needs of the consumers this will have a positive and direct impact on sales of
hotel Ritz. All these types of different segmentation will help management to plan
various schemes according to targeted group. In present age group people mainly make
booking through online site and official website, thus manager of Ritz hotel is required to
update their portal and site on regular basis. This would make available of latest discount
and additional services provided by Hotel for their customer so that they can easily make
decision for pre booking all these efforts by Ritz organisation will help in increasing sales
and profits (Link, 2012).
The primary reason that businesses split markets into marginalised groups is so the
marketing department can build a particular group personalized product mix. A segmentation
approach aids Ritz hotel to reach the specific group of people those are more likely to support in
overall increase in sales.
TASK B
2.1 Discussion of various factors affecting buyer behaviour.
In present time each and every customer is valuable for business as they have a major
impact on the profit margin of company. Customer are treated as the greatest part of business in
hospitality industry as they can influence the profitability of Hotel because highly satisfied
customer will become potential buyer of services. The buying behaviour of buyer implies that
customers make the decision process before making any purchase of the item or services offered
by Hotel. There are number of factors that have a major impact on the buying decision of
consumers. For example, in Ritz-carlton hotel customers have to make choices when buying any
service in context to buy the service which provides them more fulfilment, satisfaction. Some of
the major factors that affect the purchasing behaviour of customer that are as follows:
 Social factors: According to this factors it has a major impact on the purchasing decision
of customer in direct of indirect way because they gets influenced by their relatives,
family member, close friends. It is very common that different customer have different

taste and preference and their purchasing behaviour is also different (Gassen, 2014). For
example an individual customer wants to buy a small economical bedroom in Ritz-
Carlton, but due to influence of his/ her reference from its friends or relative individual
will to buy luxurious and big room (Maier, 2012).
 Psychological factors: These variables affect the behaviour of the customer purchasing
such as motivation, belief and practising. People who rent rooms in accordance with their
requirements and wishes. Customer use to aspect for foremost suit hotel in every manner
that includes unique services, character and ethics. Thus costumer decision are influenced
by the product line that have a major impact on the entire sales and profitability of Ritz-
Carlton Hotel (Gassen, 2014).
 Cultural factors: This suggests that cultural variables have a major affect on the
customer purchasing behaviour and their decision-making method. It means that
somehow the cultural factors like social class, culture values and subculture beliefs can
not be neglected by Ritz-Carlton hotel. Customer from different culture, social class and
attitude visit to hotel in order to get services that makes them highly satisfied. For
example the brand tag line of Ritz-Carlton is “We are Ladies and Gentlemen serving
Ladies and Gentleman” that helps to create best suitable cultural environment for each
and every customer respectively.
 Personal factors: It impacts an individual person purchasing behaviour, meaning that it
involves various variables such as income level, sex, and age plays a crucial role in
taking decisions. Several individuals will have distinct purchasing behaviours to acquire a
service in Ritz Carlton Hotel (Nickson, 2013).
Consumer behaviour influences the company as it support in determining the marketing
strategies. Ritz hotel is demonstrating its consumers' food and accommodation facilities and it is
crucial to understand what drives them to use the hotel's services. This proper analysis of every
factors would support to deliver the best services to customer according to their needs, which
would definitely increase total sales and grow profit. In case if customer are not able to get the
fully satisfied services and food item as per their demand they might switch to other hotel in
order to get the full value of money. Consumer behaviour also changes due to non additional
benefits such as customer wants extra drinks while staying in hotel and in case if this is costly

they move to search for better place. Therefore it is stated that change in consumer preference
and demand have a directly influence on the sales of Ritz hotel.
CONCLUSION
From the above report it has been concluded that sales developing and merchandising
helps in increasing revenue that is achieved by properly demonstrating or promoting services and
products so that individuals purchase and hotels can maximize their revenues and make earnings.
Throughout this study, the item and services offered by the Ritz-Carlton Hotel can be understand
easily. It describes the main elements of hotel's services offering as well as the participation of
product blend to make earnings. It also includes the various factors affecting the buyer's buying
decision. It also involves the hotel's personal selling techniques to maximize revenues.

REFERENCES
Books and Journals:
Hayes, K. D. and Nenemeier, D. J., 2019. Human Resources Management in the Hospitality
Industry. John Wiley & Sons.
Koontz, L. M. and Gibson, E. I., 2012. Mixed reality merchandising: bricks, clicks – and mix.
Journal of Fashion Marketing and Management. 6(4). pp.381 – 395.
Gassen, J., 2014. Causal inference in empirical archival social factors. 39(7). pp.535-544.
Lea-Greenwood, G., 2010. Visual merchandising: a neglected area in UK fashion marketing?
International Journal of Retail & Distribution Management. 26(8). pp.324 – 329.
Link, C. K., 2012. Internal merchandising: creating revenue opportunities. Cornell Hotel and
Restaurant Administration Quarterly. 30(3). pp. 48-57.
Maier, T. A., 2012.International hotel revenue management: Web-performance effectiveness
modelling – research comparative. 3 (2). pp.121 – 137.
Nickson, D., 2013. Human Resource Management for Hospitality, Tourism and Events.
Routledge.
Online
Psycho-graphic segmentation. 2019. [Online] Available Through:
<https://clevertap.com/blog/psychographic-segmentation/>.