Sales Development and Merchandising Report: Holiday Inn Analysis

This report delves into the realm of sales development and merchandising, employing the Holiday Inn hotel chain as a focal point for analysis. The report commences by evaluating the key components of a product, specifically within the context of Holiday Inn's offerings, and subsequently assesses the contribution of product mix to the company's sales and profit margins. Furthermore, it investigates how market segmentation contributes to sales maximization, considering geographic, demographic, psychographic, and behavioral segmentation strategies. The study then transitions to examining the factors influencing buyer behavior, followed by an assessment of suitable advertising media for sales development scenarios and the role of external merchandising. The report also explores the impact of design layout on consumer spending, evaluates internal merchandising materials, and analyzes promotional activities. Finally, the report considers personal selling techniques, the influence of operational design on sales revenue, and the key principles for a sales training program, culminating in a comprehensive overview of sales development and merchandising strategies.

SALES DEVELOPMENT
AND MERCHANDISISNG

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Evaluate key components of product...............................................................................1
1.2 Contribution of product mix to sales and profit of the company.....................................3
1.3 Analysing how market segmentation contributes to sales maximisation.........................4
TASK 2............................................................................................................................................6
2.1 Factors affecting buyer behaviour....................................................................................6
2.2 Assessing appropriate advertising media for sales development situations.....................8
2.3 Evaluating the role of external merchandising in maximising customer volumes...........8
TASK 3............................................................................................................................................9
3.1 Assessing how design layout might affect consumer spending.......................................9
3.2 Evaluating internal merchandising materials.................................................................11
3.3 Evaluating promotional activities for different situations..............................................12
TASK 4..........................................................................................................................................13
4.1 Analysing personal selling techniques...........................................................................13
4.2 Influence of operational design on sales revenue...........................................................14
4.3 Key principles that should be included in sales training programme.............................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
ILLUSTRATION INDEX
Illustration 1: Product components .................................................................................................2
Illustration 2: Market segmentation ................................................................................................4
Illustration 3: Buying behaviour model...........................................................................................6
Illustration 4: Buyer characteristics.................................................................................................7
Illustration 5: Promotional Mix ....................................................................................................12

INTRODUCTION
Sales development is the concept which focuses entirely on the front end of the sales
cycle (Pál, 2009). It is a well developed business strategy which specifically focuses on the
outbound logistics. The present study will focus on analysing and assessing different measures
adopted by the companies in order to enhance sales and development within the market. It will
analyse different strategies and methods adopted by the business to develop high and effective
sales perspectives. For analysing the same the report will closely research and analyse the
business operations of Holiday inn Hotel chain. This multinational brand of hotel has established
its brand image in more than 3400 location in the world. Unique services and recognised brand
image has helped the business in enhancing its market sales (Holiday Inn Amenities, 2016.). The
present report will analyse and understand different means and measures which have been
adopted by the business to develop effective sales within the market.
TASK 1
1.1 Evaluate key components of product
The concept of product is crucial and critical to be analysed while developing and
designing strategies for sale enhancement and development within the market. This helps in
creating recognition for the company within the economy. Holiday inn is a well established and
renowned brand of hotel chains operating effectively around the world. The core focus of the
business unit is to provide a relaxing and stress free environment. The organization has
developed large range of products and services for the consumers which includes
accommodation, lodging, food and beverages etc. The product concept plays a significant and
crucial role for business to grow and develop within the market. The significant components of
the product for Holiday Inn are:
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Illustration 1: Product components
(Source: Franco and Pereira, 2013)
 Core product: This layer of the product or service defined and associate with the basic
needs and demands of the buyers. Holiday Inn focuses on delivering quality services and
products to the consumers. This layer of the product helps the company in analysing the
basic accommodation needs of the buyers and thus focuses on managing products and
services to attain the same (Kotler and Armstrong, 2013). For example rooms with bed
and lights helps ion meeting the basic needs of accommodation. This component helps in
delivering services and meeting one time market demand. Actual product: This is yet another layer of the product helps in enhancing satisfaction
level for the users. In this highly competitive market consumers seek factors such as
quality, brand image, additional features etc. in the product. Holiday Inn has developed
the products range accordingly (Malhotra, 2008). The quality services, renowned brand
name, wide range of services etc. contributes towards the same. For example consumers
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are provided stress free living environment with quality room services, customised
consumer services, basic amenities such as TV, Breakfast facilities, technological
amenities etc. these helps in developing high level of satisfaction and additional market
demand within the economy.
 Augmented product: This component of the product consists of the extra and unique
services provided by the hotel which delivers additional value for the consumers. This
include a trained team of employees, effective facility layouts within the hotel immediate
and focused response for the consumer requests etc. all these factors has helped the
company in creating brand loyalty and trust within the consumers and helped in
enhancing market demand and repetitive demand as well (Poolton and et.al., 2006).
1.2 Contribution of product mix to sales and profit of the company
The contribution of product mix creates a direct and effective impact on the sales of the
company. It helps the business units in developing high and essential range of product services.
Product mix is defined as a range of products and services offered within the business unit in
order to enhance sales within the market. This highly helps the business in developing effective
brand image of the business (Rosenbloom and Dimitrova, 2011). Holiday Inn has developed an
effective range of products and services within the economy. It closely examines and analyses
the needs and demands of its guests and offer a wide range of services such as accommodation,
food, beverages, lodging etc. this has helped the business in creating high level of consumer
satisfaction.
Holiday inn focuses on enhancing its market share within the economy. It creates an
effective prospect of sales maximisation within the economy. The company has focused and
developed an effective product mix for the consumers which have helped in enhancing its
demand. Product mix of the organization is developed and designed by analysing changing
trends within the market (Ferrell, 2012). This has helped it in infusing innovative measures of
working. Moreover, the company has also developed effective measures of customizing the
service range in order to meet needs of its guests. The stated product range has helped Holiday
inn in developing systematic and attractive purchase options for the buyers. Hence, it can be
effectively analysed that well defined product mix of Holiday Inn has helped the business in
effectively understanding and delivering required services to its guests. Moreover, strategic
designing of the factor has helped it in creating a competitive edge within the market (Fillis,
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2011). Holiday Inn express is a relevant example for the same. Holiday Inn express is a
customised and effective option for travellers who seek fast, short-term and advanced hotel
services. Hence, it has helped the company in enhancing sales within the market.
1.3 Analysing how market segmentation contributes to sales maximisation
Market segmentation is the process of dividing a large market into small segment with
common consumer needs or demands. Dividing market with similar consumer needs and
characteristics helps the business units in designing and developing the designs and strategies for
sales maximisation easily. Holiday Inn at present is efficiently operating in more than 20
countries around the world. It has established its hotels at more than 3400 locations. The major
focus of the company is on enhancing the market share through delivering quality services to the
guests.
Illustration 2: Market segmentation
(Source: Segmentation, 2015)
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Market segmentation has helped the company in effectively understanding the needs and
demands of all the guests by segregating them on the basis of common characteristics. Holiday
Inn has segmented its market on the basis of geographic, demographic, psycho-graphic and
behavioural segments. This has helped the business in closely and clearly examining the needs
and demands of its guests. Geographic segmentation: Holiday Inn is operating globally thus geographic
segmentation has helped the business in analysing and evaluating the local needs and
preferences of the buyers. It designed and developed its strategies and process as per the
assessed demands (Baltes and Leibing, 2008). The change in services is dome
accordingly which helped the company in enhancing brand image and market demand. Demographic segmentation: Holiday Inn divides the vast consumer requests on the basis
on age, income, class, nationality etc. this has helped the company in developing and
designing its service range (Rao, 2004). For example free kids food strategy of the hotel
in K market has been designed for attracting young parents of country who seeks
accommodation and quality services within the market. Psycho-graphic segmentation:This segmentation criteria focuses on parting the market
demand on the basis of social class, benefits and usage factors. This has helped Holiday
Inn in developing effective service range for premium and normal packages. Moreover,
service range for family consumer is different (Richter, 2012). This has helped in
generating overall demand and satisfaction for the business.
 Behavioural segmentation: This segmentation criteria is based on usage, habits and
occasional factors. Holiday Inn develops its strategies accordingly thus creating effective
impact on market sales. For example in order to attract maximum guests in peak festive
season, the hotel designs special offers and promotional schemes to attract maximum
consumer flow.
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TASK 2
2.1 Factors affecting buyer behaviour
Illustration 3: Buying behaviour model
(Source: Scott, 2013)
Consumers are the core source of demand generation within the economy. Analysis of
their buying behaviour helps a company in effectively designing and developing product
strategies for attaining high success measures. Holiday Inn hotel is operating within the market
to closely analyse and evaluate the needs and demands of its buyers. This has helped the
company in designing and establishing its competitive strategies and business policies as well
(Al-turki, 2011). The stated model helps the company in effectively understanding and analysing
the buying behaviour of the consumers. The company effectively undertakes the market analysis
to understand the environmental factors which may impact buyer’s response.
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The individual response however is analysed by effectively understanding the consumer
characteristics by the hotel. As per the research analysis the major factors which develop buying
characteristics of individuals are cultural, social, personal and psychological. The organization
thus examines these factors to attain favourable buyer's response. Holiday Inn analyses cultural,
factors and design its service range accordingly (Oswald and Flouris, 2012.). The impact of
culture and social class is high on buyers. The social factor considers motivators such as
reference groups, family, roles and status etc. This has a high and influential impact on the
buyers' decisions. Holiday Inn thus develops promotional measures accordingly. In Addition to
this personal factors such as age, occupation, Lifestyles etc. also plays a significant role in
developing consumer perception for available products. Lastly psychological factors such as
motivation, learning etc. plays significant role in determining demand thus these are developed
as per consumer preferences in order to enhance sales for organisational services (Schuster and
Harris, 2014).
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Illustration 4: Buyer characteristics
(Source: Gray, 2010)

2.2 Assessing appropriate advertising media for sales development situations
Advertisement is a significant tool for promoting product and service within the market.
It helps the business unit in creating a wide and effective impact on the sales of product or
services globally. Analysing consumer behaviour helps Holiday Inn in effectively understanding
consumer needs and preferences (Trehan, 2007). Using advertisement media helps the company
in attracting mass audience from the global economy thus creating effective market demand.
Holiday inn uses different and creative advertisement measures in order to communicate with
large number of people. Advertisement media is implemented by the company for enhancing
brand recognition and developing market demands. Holiday Inn first evaluates its target audience
at different level and analyse their characteristics. The company then develop its advertisement
target to promote its services (Wacker and Lummus, 2012). On the basis of cost analysis the
organisation then plan its strategies for sales development.
Digital media is one of the most effective and successful method used for the same. Use
of online advertisement, social media promotion and online public relations has helped the
business unit in delivering positive and influential messages to the audience. The digital presence
of the company in form of social media page, website etc. has hoped in attaining high consumer
responses thus enhancing consumer relations (Saxena, 2009). Apart from this the stated platform
has helped the company to be an effective successful tool for rotating communication regarding
latest offers discounts and upcoming events in the hotels. This has helped in enhancing sales
widely. The use of digital media is an effective method of communication and advertisement
however it also enhances competition for the company as Holiday Inn has now to compete with
well established brands such as Hilton, Marriott etc. Hence well planned and developed
measures of advertisement has helped Holiday inn in establishing positive and favourable brand
image within the market.
2.3 Evaluating the role of external merchandising in maximising customer volumes
Mechanising is the concept of promoting goods and services within the market by
developing effective and positive attitude in the minds of people regarding goods and services of
the company. This concept is crucial and significant for the business to enhance their sales in the
economy. Holiday inn is a service sector unit and external merchandising plays an effective and
well managed role in developing high consumer volume (Salisbury, 2010). The organization has
developed and designed business strategies efficiently in order to enhance market sales.
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The organizational layout infrastructure of the company is well designed and developed
which has helped the consumers in developing a positive brand image for the business. Effective
parking space and well planned facility layout is yet another strategy that the cited firm has
applied in different locations of business. Moreover, the selection of location of hotel
establishment is also a significant factor considered for the same. Holiday inn focuses on
providing a stress free and relaxing accommodation facilities thus the company ensures effective
locational issues (Cavale, 2006). This has helped the hotel in creating a positive and ease for
approaching by the consumers. This factors has helped the company in attaining high consumer
satisfaction and loyalty within the market. Apart from this a team f well trained employees has
also effectively contributed in enhancing the brand image of the business for both local as well as
international consumers. The above stated factors help the company in developing a positive and
effective brand image of the company in minds of the consumers.
TASK 3
3.1 Assessing how design layout might affect consumer spending
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Illustration 5: Holiday Inn Entrance
(Source: Holiday Inn Amenities, 2016)

Hospitality industry is one of the fastest growing industry in the world. The industry
offers effective services design and layouts for its consumers for enhancing sales and
satisfaction. This helps the organizations in developing an effective brand image and gaining
increasing rates of representative sales from the buyers (Dutta, 2011). The role of design layout
is significant for the industry as it is one of the significant selling prospect for business. Well
designed and planned layout helps the company in enhancing services and creating high level of
consumer satisfactions.
Holiday Inn focuses on delivering effective service range and delivering a comfortable
and stress free experience to the guests. Design layout plays a significant role for the same. Well
designed and equipped lobby, well furnished rooms, effective physical layout, facility layout etc.
has wide impact on consumer satisfaction. These features help the business in enhancing service
level as well. Holiday Inn focuses on adopting innovative and advanced technologies to enhance
competitiveness of the firm (Greene, 2010). This has helped the company in developing its brand
image from motel to a full facility hotel. Apart from this effective design and management has
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Illustration 6: Internal layout of Holiday Inn
(Source: Holiday Inn Amenities, 2016)