Sample Report On

Sales Development and Merchandising

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 TABLE OF CONTENTS
Introduction ................................................................................................................................... 1

Task A ............................................................................................................................................ 1

1.1................................................................................................................................................ 1

1.2................................................................................................................................................ 2

1.3................................................................................................................................................ 3

Task B ............................................................................................................................................ 4

2.1................................................................................................................................................ 4

2.2................................................................................................................................................ 5

2.3................................................................................................................................................ 6

TASK C .......................................................................................................................................... 7

3.1 Impact of design and layout on customer spend ................................................................... 7

3.3 Promotion activities for different scenario ........................................................................... 9

TASK D ........................................................................................................................................ 11

4.1 Evaluation of personal selling techniques........................................................................... 11

4.2 Influence of operation design on sales revenue .................................................................. 11

4.3 Key principles should be included in a sales training programme ..................................... 12

CONCLUSION ........................................................................................................................... 13

REFERENCES ............................................................................................................................ 14

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 LIST OF FIGURES
Figure 1: Christmas Extravaganza of Milestone hotel .................................................................... 2
Figure 2: Luxury services of Milestone hotel ................................................................................. 2

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INTRODUCTION
Sales development and merchandising is a structured set of activities to promote the sale
of goods and services. As per international marketing association sales merchandising
encompasses planning of marketing behavior to promote products or services of business
organization. Present project report is focused on internal and external techniques of sales
development in a business and service context (Clarke and Chen, 2009). For better understanding
of project selected organization is The Milestone Hotel. It is one of the largest and best known
traditional style grand hotels in London. Present project comprises of explanation of product mix
and its contribution to sales and profit of business. Further there is a description of sales
promotion and merchandising techniques which can be used in promotion of services and
products of Milestone hotel.

TASK A
1.1
Product mix of Milestone hotel
Product mix refers to the total number of products offered by business to their customers.
In the context of The Milestone Hotel, they offer unique and luxury services for higher customer
satisfaction. Their 24-hour butler service is the best voted service according to readers of Cond
Nast Traveler. They provide family package including kids entertainment and travelling with
your pets. For mind relaxation and exercise they have fully equipped gymnasium, spa treatment
room and resistance pool. The single aim of the team is to make ever guests stay pleasurable and
snag free. On festivals they offer delicious treats and exciting services to make their moments
memorable and enjoyable (Wood, and Brotherton, 2008). Along with this management provides
concessional offer on longer stay. For example if there is booking of three nights for unique
suites with unrestrained luxury 3rd night will be absolutely free. Their dining services are real
treat and source of pleasure for their customers. In 2011 hotel has introduced a menu that
showcases the best of modern British Cuisine. They have made excellent use of quality seafood
with best seasonal produce from the British Isles.

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 Figure 1: Christmas Extravaganza of Milestone hotel
(Source: The milestone hotel, 2012)

Figure 2: Luxury services of Milestone hotel

(Source: The milestone hotel, 2012)
1.2
Contribution of product mix in sales and profit

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 Product mix of Milestone Hotel has increased their revenue and net earnings over the
years. They have won two awards for their innovative product mix and internet marketing
strategies. Milestone is currently working with more than 700 hotels and drives and they are
earning more than $150M from their clients and customers. Milestone hotel is preferred by
customers for their innovative and satisfactory services. The hotel is also well known as a
lodging industry educator for its Hotels to HTMLs internet marketing workshops and book. They
are providing free breakfast service in inclusion of package (Simmons, 2007). By this hotel is
increasing their sales and reducing their costs. They are providing additional services to increase
profit of business such as gym, spa room, health packages etc. They are focused on all age
groups thus they offer different packages according to the needs to increase revenue and
attaining brand loyalty.

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1.3
Contribution of market segmentation in maximization of sales
Market segmentation is a marketing strategy in which entire market is converted into
subsets according to common needs and priorities. It enables business to target different

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categories of consumers for maximization of sales. This will help Milestone hotel in designing
and implementing strategies according to the need of the customers. Following are the several
market segmentation criteria which can be used by them in maximization of sales-
Behavioral segmentation- The Milestone hotel is famous for their attractive services and
offers. They provide different packages such as master and junior suits according to the
behavior of customers (Halepete, Hathcote and Peters, 2005). Further for maximization
of sales they are diversifying their focus by giving services in business areas. For
example they are introducing conference hall for board meetings.
Demographic segmentation- They are providing their services as per the demographical
attributes. They are focused on the population of the nearby area to increase their sales
by maximizing their satisfaction. Hotel is giving bar, casino, pet policy and other
entertainment services to generate higher revenue.
Geographic segmentation- Milestone hotel is planning for global expansion by providing
their services internationally. They will sell their brand name in other countries to
increase their revenue without incurring major capital cost (Koontz, and Gibson, 2002).
By this organization will be able to increase their market share and will strengthen their
position.
Psychographic segmentation- Organization provides services according to need and
preference of the customers to enhance their sales revenue. It is their core value to
provide higher customer satisfaction through their unique and royal services.

TASK B
2.1
Factors affecting buying behavior of customers
It is essential for the whole business organization to analyze factors which can affect
buying decision of customers for better operations. This will help Milestone hotel in designing
and implementing strategies according to recent trends in future activities-

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 Cost and quality of services offered- In hotel and tourism industry customers are
usually affected by cost and quality of services. Milestone hotel is famous for their royal
services which attract high-class customers but reduces middle-class customers.
Unique and satisfactory services- Management of the hotel is providing innovative
services which attracts customers. In their packages each guest is facilitated with two
staff members for uninterrupted services with proper privacy (Johnson and Vanetti,
2005). During festive season they give additional delights to increase their loyalty.
Ambience- They have good atmosphere to increase comfort of their consumers. They
maintain health and hygiene in the environment to create such aura where guests can
come and enjoy services for longer period.
Concessional delights- Buying behavior of customers in Hospitality and tourism
industry are affected by pricing and concessional offers given by organization. Thus
Milestone hotel is engaged in providing innovative offers to increase their customers.
They are providing beneficial offers such as free breakfast, additional benefit on longer
stay and health and fitness classes by experts

2.2
Use of advertisement media for sales development
Sales promotion and advertising is one of the major activities in marketing for the
business organization. There is an important role of E-marketing strategy in hospitality and
tourism industry. Online Advertisement media can be used by Milestone hotel in increasing their
sales revenue by creating awareness (Herstein and Mitki, 2008). It will help the organization to
grow in a better manner. Several options are enumerated below which can be used by hotel for
sales development-
Mailing- In this option advertisement is done by sending mails to existing customers
about the new offers. This is a convenient and cost effective method as in this direct
contact can be made by management to advertise about new offers.
Social networking sites- Social media can be used by Milestone hotel to create
awareness about their products and services. By this option they can reach to large
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 audience. They can publish their offers on blogs through videos and images for sales
development. This option will also cover potential customers with existing customers.

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Advertising online using banners- The banner space of the popular search engines can
also be used for effective marketing for sales development. Ad space can be bought
through pay per click method which makes this option economical (Johnson and Olsen,
2009).
These methods will help marketing team of Milestone hotel in attracting potential
customers. It will increase their market share and will eliminate competition from the market.
Online advertising will increase sales and profit margin of hotel by maximizing their customer
volumes.

2.3
Evaluation of use of external merchandising in maximization of customer volumes
External merchandising is used for enhancement of sales by increasing value of product
and services. It is essential for the hotel management to be customer oriented to maximize their

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volume. Following are the two methods which can be used by Milestone hotel for enhancement
of customer volume-
Personal merchandising- Hotel is providing services as per the needs and wants of
consumers. In personal merchandising management is focused on the general
requirements (Tesone, 2005). This strategy will help organization in increasing customers
by providing common amenities.
Segmentation merchandising- Hotel management has created subsets of customers
according to their needs and requirements. For higher customer satisfaction they are
providing different packages for different groups. For example they are providing pet
facilities for guests who like to travel with their pets, suits according to class of people,
entertainment packages for children etc. (Verret, 2008). Thus, hotel is able to increase
customer value by merchandising on the basis of segmentation.

TASK C
3.1
The Milestone Hotel has different designs and an attractive layout which encourage
customers to avail the services by spending on it. With the basic services they had provided
ancillary services to increasing their spending. The master suites of the hotel are designed in a
highly graceful manner. In the suites, balconies facility is provided from which customers can
enjoy unprecedented views overlooking gardens and Kensington places and can enjoy services of
health club, bar, conservatory, restaurant and lounge areas. They had displayed everything in
such a beautiful manner to attract customers. The hotel has superior queen's rooms, deluxe twin
or king rooms and deluxe studio rooms where customers can draw into a private world of luxury
and effortless technology makes their comfort complete. By such additional efforts and services
customers are influenced to increase their spending to avail royal facilities of hotel.

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 Fig.1: Master Suites of Hotel
(Source: The Milestone Hotel London, n.d)

For the business class people, hotel offers ideal meeting room facilities such as IT
support, Laptop rentals, Mobile phone services, office suppliers and stationery items as well
secretarial support on request are also provided (The Milestone Hotel London, n.d). These kinds
of services make meeting more productive which increases business visitors. Further
professional dinners and tea-breaks increase the spending of commercial customers. Customers
can enjoy the Cheneston's Restaurant bar where various kinds of hygienic foods are offered to
them. They had provided all facilities under a roof to increase comfort of customer. The hotel has
an exquisite bar which is one of the costliest bars where customers can relax and enjoy royal
services of bar to slough off the stresses of the day. They are providing gambling and alcohol
facilities with innovative ideas. The Milestone Hotel provides high level of facilities and it is not
a big issue for customer to pay amount for those luxury facilities. Their quality is usually higher
then price charged by them which gives memorable experience to customers which influence
them to increase their expenses on hotel services.

3.2
Organization ensures regular checking and monitoring services to reduce contradiction
and embezzlement of resources for better management. The Milestone hotel is continuously
engaged in maintaining quality of their services to increase customer satisfaction. If internal
structure of an entity is not maintained then it will affect entire operations. For this hotel is
maintaining proper communication between the customer and the staffs for providing
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uninterrupted services by them as well as it enhances the value of the customer (Verret, 2008).
Further with proper communication they had established coordinated environment for proper
internal management. This is time and cost consuming but it is also effective and beneficial in
increasing revenue of business. Further additional services are also provided by them for
increasing their effectiveness.

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For example they also provided packages for guests who travel with pets. They had maintained
proper provisions that pet cannot disturb other guests. This is due to effectiveness of internal
merchandising materials. Other services are offered by them to increase the comfort of customers
such as facility such 24 hour front desk to solve customer queries, Wakeup services, Currency
exchange services in the hotel corridors. They are providing memorable dinner experience with
art of Sabrage facilities (Technique for open Champagne bottle with a sabre or French army
sword). They are also offering rewards for room upgrades, bonuses, and gifts to motivate their
employees.

3.3
Evaluation of several promotional techniques as per different scenario on the basis
of Milestone hotel-

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 Festive Seasons: During festival season such as Christmas and New Year, hotel arranges
grand feast which is prepared by highly qualified and experienced chefs. They offer
additional services to promote their hotel such as membership cards, holiday offers and
spa offer to target potential customers (Link, 2012). As well as in off seasons hotel give
their spaces on rent for parties and wedding and birthday to generate sales. For the
awareness of such facilities and offers they advertise their products in newspapers and
websites in innovative manner. Even they had won recently two awards for best internet
marketing.
Seasonal period: They offer lucrative facilities such as auditoriums, meeting &
conference rooms with the option of audio visual equipment and wireless technology to
attract commercial class.
Other offers: The Milestone Hotel London provides worthwhile offers like 4 nights for
the price of the three on best available rates. They are providing theme based suits to
increase their satisfaction and to convert potential customers into existing customers. For
example their Magical London suit offers provides accommodation in a beautifully
appointed suite with Harrods vouchers and a warming glass of mulled wine. Shopaholics
dream packages is available throughout the year and it includes overnight
accommodations and gift vouchers of 50 for their departmental store (The Milestone
Hotel London, nt.d).

Recommendations for improvements:

Organize should frame discount polices and offers service like coupons and organize
competitions and contest so middle class people aware about those event and visit hotel.
Firm can give different lucrative offer to attract customers like 3 nights, 1 days with
Indoor pool and in room movies facilities to attract them.
Hotel must be publicity themselves by sending media releases to print and mouth
publicity to attract middle class people.

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TASK D
4.1
Good interpersonal and communication skills are an important part of the personal selling
technique. Hotel management should offer innovative discount policy and maintains good
relationship with customer. They should aware them about new plans and policies to attain their
loyalty. To make personal selling technique more effective and efficient, it is required that right
employees are selected for right post at the right time. Different kinds of personal selling
methods are used by The Milestone Hotel London, United Kingdom used which is enumerated
as follow-
Sales call: The milestone hotel has target and arrange their functions in an appropriate
manner to increase their sales. Before starting this process staff members required
excellent product and service knowledge to sell the products and stream about their
benefits. They had set day to day target which is required to be achieved by them in well
planned manner. They are using email and website to update their existing customers
about new offers. They had customized message policy which is used by them to
maintain good relations with customers (Bath, 2006). They are also involved in cultural
and community programs to create awareness of the services of the hotel.
Personal selling method: Through successful implementation of this method, hotel
chooses personal sales executives or right employees for right position and training
provided to them so they are able to sell products.
Telephone selling: The Milestone Hotel, appoints Tele caller and trained them so they are
able to analyze customer's needs as quickly and give the answer them on the spot.

4.2
The Milestone Hotel designs its operation in effective manner to reduce cost and increase
efficiency. For this hotel is offering indoor pool, spa, Fitness Center Exercise gym and Steam
bath facility to guests to increase their revenue. The other kinds of the facilities such as
gymnasium, resistance pool and sports facilities are offering by them to satisfy need of entire
guests (Sloan and et.al, 2013). The firm used its space for parties, wedding social events and host
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business gatherings in off session to generate revenues. For a meeting or an event, they are
providing facilities such as audio/video technology and wireless broadband internet access
service throughout the hotel. It used hotel place for organize festive parties and host private
celebrations for the holidays. An establish hotel orchestrate a magical charismas celebration and
customers enjoy traditional hospitality at its finest.

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The hotel is also offers special day delegate package to the customers in which it provides all
facilities including welcome tea, breakfast, mid-morning tea with chocolate clairs and 50''
plasma projection TV etc. with discount policy also. Smart phones and used many other types of
technology like social sites and websites to talk with past and future guests and maintain
personal touch with them by using such kinds of devices. Encourage guests by providing satisfy
services and request them to refer new customers.

4.3
Better communication skills: They must providing training to employees to how to deal
with customers. They should arrange training session for their employees to improve
their communication skills. Training regarding technical as well functional knowledge

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 related to their departments should also be provided to them so they provide standard
performance.
Increase knowledge about hotel services and products: Employee should have sufficient
knowledge regarding services which are offered by hotel to the customers. By this staff
members will be able to deal with customers and their queries. They can give proper
information regarding services to increase revenue and profit margin (Mungall and
Labben, 2009).
Knowledge of desired customer's services: The Hotel should provide training to their staff
members to aware and increase their knowledge about different category of customers
and prepares them how to treat them. The sales training programme must be designed in
such manner that gives the practical understanding and technology related knowledge to
the employees. It would be beneficial for the firm to manage better relationship with
existing and new customers as this will increase their sales revenue in a significant
manner.

CONCLUSION
The research report explores the services and facilities offered by the Milestone Hotel
London, UK. From the study, it is cleared that hotel is providing best and unique services to their
customers throughout the whole country. Product mix of hotel shows the key components and
their contribution in sales & profit. The study also evaluate that the internal and external
merchandising techniques influence the customers spending. By conducting proper sales training
plans the firm to increase knowledge of staff members and help them to understand the customer
in a better way as well as maintain better communication with them.

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REFERENCES
Books and Journals

Bath, C., 2006. Hospitality Law: Managing Legal Issues in the Hospitality Industry. John Wiley
& Sons. (5).PP.287 293.

Clarke, A. and Chen, W., 2009. International Hospitality Management. Routledge.

Halepete, J., Hathcote, J., and Peters, C., 2005. A qualitative study of micromarketing
merchandising in the US apparel retail industry. Journal of Fashion Marketing and
Management: An International Journal. 9 (1) pp.71 82

Herstein, R. and Mitki, Y., 2008. From branded to endorsement corporate identity strategy: the
case of the Fattals Hotel Management Group. Tourism Review. 63(3). pp.48 56.

Jayewardene, C., McMillan, D., and Pantin, P., 2013. Trends in the international hotel industry. 5
(2).PP.151 163.

Jeff, T., 2009. Sales Management. Pearson Education India.

Johnson, C., and Vanetti, M., 2005. Market Developments in the Hotel Sector in Eastern Central
Europe. pp.153-175.

Johnson, D., M., and Olsen, M., 2009. Joy and disappointment in the hotel experience:
managing relationship segments. 19 (1). pp.4 30.

Koontz, L. M., and Gibson, E. I., 2002. Mixed reality merchandising: bricks, clicks and mix.
Journal of Fashion Marketing and Management: An International Journal. 6(4). pp.381
395

Link, C. K., 2012. Internal merchandising: creating revenue opportunities. Cornell Hotel and
Restaurant Administration Quarterly. 30(3). PP. 48-57.

Mungall, A. and Labben, G., 2009. Hotel offer adjustments for senior citizen guests: perception
of Swiss hoteliers. PP.223-239.

Simmons, D., 2007. Keepers of the Record: The History of the Hudson's Bay Company Archives.
McGill-Queen's Press MQUP.

Sloan, P and et.al, 2013. Sustainability in the Hospitality Industry: Principles of Sustainable
Operations. Routledge.

Taylor, D. and Miles, D., 2011. Fusion: The New Way of Marketing. Ecademy Press.
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Teseone, V., 2012. Principles of Management for the Hospitality Industry. Routledge.

Tesone, V. D., 2005. Human Resource Management in the Hospitality Industry: A Practitioner's
Perspective. Pearson/Prentice Hall.

Verret, C., 2008. Hotel Sales and Revenue Management Book 2.0. iUniverse.

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