Burj AL Arab hotel is known for their luxurious hospitality services. Newly appointed sales executive of marketing department has to search new products that can help hotel in increasing their product portfolio.
- Understand different elements of product/service offered by Burj AL Arab hotel.
- To analyse sales development and merchandising techniques.
- Define tools and techniques that are used by Burj AL Arab hotel for internal sales promotion.
- Determine the role of employees in maximising sales of Burj AL Arab hotel.
Hospitality industry is one of the emerging industry across the world, there are large numbers of luxury and small hotel are being operated in industry. In this report the company has been given which is Burj AL Arab hotel, this is third largest hotel in the world and they have high rate of customer base. In addition to this, the study will be discussed about evaluation of the key components of the products and range of contributions to sales and profit of elements in the product mix. Apart from it, the study will be discussed about the factors affecting buying behaviour of the hotel's customers. Some external sales development techniques such as advertising media and sales development situations which affect the business sales volume. Beside from it, the investigations will be discussed about the role of external merchandising in maximising the performance and sales of the company in industry. In addition to this. The report will be discussed about the design and layout that might affect customer spends in impressive way and will be review about evaluations of promotional activities for different scenario of Burj AL Arab hotel and making recommendation to improving it. The report will also be discussed the key principles that should be included in a sales training program of the hotel.
P 1.1 Evaluate the key components of the product
Sales development is main aim of an organization. Merchandise refers to addition of various activities to promote services in hotel. Product is anything which satisfies customer needs and desire in terms of services, goods etc. The Burj Al Arab is a luxury hotel located in Dubai.This components of marketing may help to increase productivity. These hotels work into hospitality and sevice industry (Wheelwright, 2010). It is providing services to the customers to satisfy their needs. The main component of this hotel is –
- The hotel provide accommodation facilities to their customers. This hotel is listed in a world top most hotels. They earn more profit by selling their rooms to the customer.
- The Burj Al Arab providing natural amenities such as sea facing, bar, cafes and other ancillary services.
- Activities and facilities like spa, laundry services and banquet halls are also provides by these hotels to their customers (Thomas, 2015).
- Burj Al Arab hotel attract to customer by physical design and layout of the hotel and its exterior design will also attract the new customers.
- This hotel also provide accessibility to the places by provide travelling and receiving facility for their customer.
- This hotel provide restaurant facility. So any customer does not go anywhere. And use these facilities here. So it increases the profit for hotel. It also provides internet facilities to their customer (Reardon, Timmer and Minten, 2012.).
- The main aim of hotel to increase more and more customer to earn more.Burj Al Arab is the tallest hotel of the world. So its also attracts the new customer.
- Burj Al Arab hotel increase more facilities to their customer to increase more productivity.
P 1.2 Discuss the range of contributions to sales and profit of the elements of the product mix
Product mix is a group or range of product which is sell by a company. Product mix refers to a total number of product lines a company offers to their customer. Product mix increase the sales and profit for the company (Pousa, C. and Mathieu, A., 2010). Burj Al Arab hotel offered many products like hotel rooms, swimming pool, restaurant, game zone, bars snd cafe as well. Augmented product to give extra benefit to their customer they don't want to go outside the hotel all facilities given by the hotel to their customer. This hotel provides high class rooms, restaurant , bars, laundry and travel etc. To increase profit.
Product mix of Burj Al Arab hotel is very attractive. These are resort accommodation services with some value addition which generate more customer and more sales of their products. A diversified product mix help to the company to create a strong brand image in eyes of customer and its increases the sales of the hotel a to create more and more customer. This hotel provides wide range of packages just like accommodation packages luxury , super luxury rooms to their customers (Munoz, 2010). And it also creates the brand image among customers. Product mix is a very essential part of company or any organization
Product mix include services which is provided to their customers. In these hotels many services like accommodation, restaurant, laundry, swimming pool, gaming zone for children, gym, spa and other more services to increase more customer. These facilities are given to their customer which attracts more customer. Product mix is an important part of marketing. Product mix contributes more sales and more profit to any organization. Burj Al Arab hotel already famous in Dubai and world because it is the tallest hotel in world. If this hotel increase more product and services to provide their customer so its help in increase its sales and profit. If any company satisfy their customer by their services so its also increases customer.
P 1.3 Assess how market segmentation contributes to sales maximisation
Assess how market segmentation contributes to sales maximum:
Market segmentation is done by the hotel by dividing their markets by geographic , Psycho graphic, Seasonal, political, domestic etc. Geographic segment is based on location. In Dubai this hotel target the business class people to increase their revenue And the other is psycho graphic is based on thinking, behavior of the people (Melton and Hartline, 2010). In this segment hotel divide their customer into different categories in this similar thinking customers, feeling will be grouped in other segment. For example travels prefers premium packages. Market segmentation is most commonly used in any organisation to expand their business worldwide.
Segmenting is based on by identifying benfits to the customers. This hotel target individual customer who pursue luxury lifestyle. So it is very essential to do market segmentation for gaining more benefits. Segmentation identifies the group of same interested people. And effecting targeting should be done by the company its help in proper segmentation. This type of segmentation increase productivity and sales.
In segmentation company can evaluate and then divide their customer according their needs and wants. Some customer need only single person room. So hotel provide that room. It is easy and more profitable to the hotels . They provide rooms according to customer desire. The hotels also increase facilities according to customer choices and preferences. Segmentation also depends on customer age, sex, income. So this hotel also segmented their customer according to this basis. If any company use market segmentation it effeminately increase their sales and earn more. Burj Al Arab hotel most famous in Dubai. It situated in very noise less place. So it attracts customer (.McMichael, 2011). And this hotel also provide packages according to vacation or season like summer, winter because many customers planned their vacations in Dubai and want to stay in this hotel. Season is also include in market segmentation . In vacations time this hotel gives more packages to their customer. Increase the sales of Bur j-al-arab hotel using the segmentation can achieve maximum profitability and hotels market share. It increases sales by whom resident outside of the Dubai. Market segmentation is very important in any business to increase sales. These hotels may increase more sales by providing good quality facilities to their customer.
2.1 Discuss the factors affecting buyer behaviour
A product consists of various features and characteristics that helps in distinguishing it from one another. It is the most important element in marketing mix. A product contains some features that helps in satisfying customer needs. Moreover, a product can be a good or a service. Business sells' product to people that satisfy their needs and wants. Furthermore, a product consists includes core product, services and features. A buyer purchase a product in order to satisfy their needs. The product is purchased by analysing its information. It includes features, prices, brand, etc. Business should advertise its product in such a way that it attract people to purchase it. A buyer behaviour can be affected by various factors (Vahlne and Johanson, 2017). This will lead to change in their taste and preference. Thus, it will enable business to make changes in product. There are many factors that have a great influence on people behaviour. A sudden change in this will affect market condition. The factors that lead to affect buyer behaviour are social, cultural, physical, etc. Buyer decision is highly affected by motivational theory that describes needs of people. This theory was given by Abraham Maslow. In this people needs are divided into four categories that are as follows :-
- Physiological needs- These are the basic needs that every human being requires. It includes food, clothes and shelter.
- Safety needs – It includes security from theft, violence, etc. It also means freedom of living and working (Sharma and Syam, 2018).
- Social needs- A person needs love affection from society and other people. It includes social belongingness and engaging in social activities.
- Esteem needs – It includes self respect of others. For example- achievement, recognition, appreciation by the people.
- Self Actualisation needs- After getting all the above needs a person desires to become what he wants. It is about desire to develop.
Buyer decision process- This factor affect buyer decision to a great extent. It describes different stages of buyer decision process. Consumer decision differs according to product. The decision is often valued in monetary terms (Esteve-Altava and Rasskin-Gutman, 2017). A consumer may change its decision at any stage. Five stages are discussed below :-
- Need recognition- The decision process begins by analysing consumer needs. It helps in taking further step. For example – a person may feel hungry, in this need will be of food.
- Information Search In this consumer starts searching about which product will be best to satisfy need. For this consumer collects information from family, friends, etc. It helps in finding variety of products available in the market.
- Evaluation of alternatives- Consumer evaluates alternative on certain basis such as price, features, company, etc. It is done to determine the best quality product.
- Purchase decision – After evaluation consumer takes decision to buy that product. But it can be postponed due to some reason (Peters and Bugge, 2014).
- Post purchase behaviour- In this after consuming product consumer will be satisfied or dissatisfied. If satisfied consumer will be delighted and if not then he will be disappointed.
Perception- The perception of people affect their buying decision. It is because they think different for every product. Also, their minds can be influenced by other people as well.
2.2 Assess appropriate advertising media for sales development situations
It is very important for Burj Al Arab to increase its services so that it can attract a lot of people. They need to develop products so that it can provide variety to consumer in choosing it. Hotel can also develop products according to change in taste of people. Along with this, hotel needs to advertise its products that will help in increasing sales and profits. This will also help in retaining customers and increasing market share (Töllinen, Karjaluoto and Jayawardhena, 2015) Promoting product will help in increasing awareness about it. For developing advertising plan it is essential for Burj Al Arab to analyse some elements such as :-
- Media selection – Selection of media is very necessary. It is because it helps in effective advertising. While selecting media its range, costs, efficiency, etc. are evaluated.
- Costs – Generally, costs of advertising is very high. It is because business have to develop effective promotion strategies. Burj Al Arab must allocate enough resources so that product can be marketed in proper and effective way. It will be beneficial for hotel.
- Target market – Before advertising product, Burj Al Arab must specify their target market. It will help in effectively development of advertising strategies. Target market also gives an insight on which type of media will be better to use. Moreover, it allows hotel to focus on that segment (Rovira-Asenjo and Sales-Pardo, 2017). Besides this, it helps in identifying their needs. Burj Al Arab can target high class people.
- Evaluating Effectiveness – The evaluation of media will help in measuring performance of sales. By this it will be easy to identify whether sales has increased or not. Moreover, it evaluation helps in finding out loop wholes and what went wrong and how it can be improved. It also helps in identifying weak and strong areas.
2.3 Evaluate the role of external merchandising in maximising customer volumes, making recommendations for improvement
Business my use external merchandising for maximising it sales and attracting people. Merchandising helps in presenting products or services in such a manner that it stimulates customer to make a purchase (Rochford and Wotruba, 2015). It also includes activities for selling or promoting a product. In involves giving free samples, providing special offers, etc. with this sale of product as well as brand awareness increased. It is highly based on product design. Burj Al Arab can do external merchandising by using design aspects.
Recommendations for improvement:-
- Location – The location of hotel should be near airports or other tourist places so that it can attract large number of people. Moreover, it will help in increasing demand.
- Car parking – Hotel must provide car parking facility. It will help customer to park their car without any hesitation (Szwejczewski, Goffin and Anagnostopoulos, 2015). Also, it will create a good impression on them. Other than this, more facilities can be provided like helping at reception, in car parking, etc. This will create a better impression. Furthermore, it will attract other people as well.
- Entrance – The entrance should be so attractive that it catches eye of people. Customers can be greeted on entrance by giving them bouquet. Also, customer can be treated with respect that will help in creating good impression. In this way volume of customers will be increased.
- Display at stores- Burj Al Arab can display its product and services at retail stores. It will help make aware people about hotel and its services (Henriques, and Gonçalves, 2017). It will also increase awareness about hotel in public.
suggested sample: Customer Lifetime Value
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