The Savoy Hotel’s Luxury Accommodation

The hospitality organisation chosen is The Savoy Hotel which is located in London. It is the only luxury hotel on the River Thames.

Evaluate the key components of your chosen product: you will have first to indicate the characteristics/features/benefit/lifecycle of the product in detail and secondly say precisely what the 4 key components are. (AC1.1)– D1

The Chosen Product/ Service

The chosen product is Accommodation which is referred to a broader sector of the hospitality industry which ranges from the lodging services to the breakfast enterprises and is one of the basic products needed by the customers. The hotel focuses on providing effective nature of accommodation to its customers to ensure their travelling needs are catered in a holistic manner. It is essential because all customers who are travelling or checking into hotels required accommodation services in proper manner to rest and stay away from home. The proper accommodation services also influence the customers to extend their stay in the hotels which in turn improves the income of the hotels (Birinci et al. 2018). The key components of accommodation services include lodging facilities, food and beverages and personalised services.

Lodging facilities: The lodging facilities are one of the components of accommodation in hotel which is referred to the renting out rooms to the travellers or consumers to help them to rest and sleep in safety away from home (Kobyak and Lvovna, 2015). In Savoy Hotel, there are 200 luxury rooms along with 68 suites out which some are specially developed to suit the high profile guests (Savoy hotel website, 2019). Moreover, the rooms are decorated in an effective way with different stylish furniture and all the everyday amenities like television, audio iPad and others are available within the accommodation facility to be used by the guests (Savoy hotel website, 2019).

Food and Beverages: The food and beverages are another components in accommodations services that are provided to the customers to help them maintain proper health and meet their hunger while travelling and remaining away from home (Pratt et al. 2017). In the Savoy Hotel, there is wide range of food and beverages being prepared for the guests to suit their health demands by the experienced chefs. In the hotel, there are award-winning culinary experiences present for the guests as in the heart of the Hotel there is Thames Foyer which is regarded as one of the best afternoon tea and dinner for the individuals (Savoy hotel website, 2019).

Concierge Services: The concierge services are referred to the component of accommodation which indicates the tasks performed by the hotel staffs to welcome individuals for stay such as making hotel reservations, booking transportation and others (Sumner & Quinn, 2017). In the Savoy Hotel, the concierge team ensures effective accommodations for the guests to ensure each of the individuals stay in the hotel gets unforgettable. The team helps in providing chauffeur as well as transfers services as a component of ensuring effective accommodations for the guests (Savoy hotel website, 2019).

How is each component of that product contributing to the sales and profit? (AC1.2)

The contribution of the Component to Sales and Marketing

The lodging facilities which is one of the key components of accommodation in the Savoy Hotel is seen to be of high-class and quality that leads various luxurious customers and eminent guests to avail services from them. This is because classy lodging facilities fulfil most the needs of the high-class customers in a fruitful way which makes them attracted to availing lodging services from the hotel (Savoy hotel website, 2019). It contributes to the sales and profit of the Savoy Hotel as the lodging services in the hotel for the Royal Suite leads them to earn £14,000 per night along with double room helps them earn £450per night which does not include the breakfast rates (Savoy hotel website, 2019). The amount of money is quite high in comparison to other lower star hotels in the UK ensuring them to earn at par with the services they offer to the guests. The food and beverages are another component of accommodation in the Savoy Hotel which contributes to their sales and profit. This is evident as the breakfast services at the Savoy Hotel are uniquely presented that leads most of the guests to order from them. Moreover, the Kaspars at the Savoy offers food and beverage menus for the guests which contain best food items that would meet the tastes of the customers for lunch, dinner as well as for any time of food in the day (Savoy hotel website, 2019). The concierge services acting as component of accommodation in the Savoy contributes to their sales as it helps the hotel staffs to arrange seamless services for any chauffeur or airport transfer services for guests while lodging in the hotel (Savoy hotel website, 2019).

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)

The Best Marketing Segment

The best marketing segment for this product is both corporate customers seeking to have free time out of their normal schedules and families on holiday. The hotel’s location is convenient and easily accessible to customers by train or bus. It also offers a breath-taking view of the Thames River and iconic London landmarks which complements its attractive interior decor.

Define “Buyer behaviour “and discuss at least two (2) factors that influence customers’ behaviour in that organisation. (AC2.1)

Buyer Behaviour and Factors Affecting Consumer Behaviour in the Hotel

Kotler (2004, p. 601) defines the concept of buying behaviour as the purchasing habits of individuals who acquire products or services for personal consumptions. The concept describes the attributes of the consumer such as attitudes, intentions, preferences as well as decisions regarding the purchase of the product. Some of the factors affecting consumer behaviour at the Savoy hotel are preference groups and public perception.

a. Preference groups

Popular personalities such as politicians, artists and actors have made Savoy hotel their place of accommodation while in London and this has inspired the naming and furnishing of the hotel's suites with the personalities’ unique souvenir and artworks. This aspect has affected consumer behaviour in the hotel as people who like being associated with the personalities have made the hotel their choice of accommodation.

b. Public perception

Public perception is influenced by the image presented by marketers. Savoy hotel’s grand entrance, Savoy Court, decorated with iconic art and a statue of Count Peter has welcomed royalty, important dignitaries and Hollywood stars (Robbins, 2010). The interior decor that includes a mix of Edwardian and art deco provides guests with distinct styles to choose. This has created a positive perception of private luxury which has helped influence the consumer behaviour of comfort and luxury-seeking customers.

Make a checklist of Internal Merchandising materials and evaluate their effectiveness making recommendations where necessary. (AC3.2) – You can use a table such as the one below and add as many materials as needed. D1

Merchandising materials are referred to the different available products and goods that are for sale and displayed in such a way so that it stimulates entices and interests of the consumers to make the purchase.

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) – D3 - You can use a table such as the one below and add as many materials as needed.

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) – D3

Surveys have shown that internet or electronic media, creating food coupons and providing food samples to customers are effective promotional activities in hotels such as Savoy hotel and have proven to produce higher benefits. Savoy hotel can use electronic media to send promotional messages to targeted consumers as a way of providing information about the hotel products as well as create a positive image of the organisation. Sales promotion can also be used to incentivise consumers for purchasing the accommodation or restaurant product in Savoy hotel (Acara, Gulu and Karamustafa, 2012). The advantages of promotional activities are that it helps attract new customers due to the incentives and personal relations with them that are established. They are also beneficial in the long-term due to increase sales volume since they are tailored to encourage customers to purchase more products to achieve more satisfaction. The disadvantage of promotional activities is that consumers become sensitive to normal prices when the promotional activities are over. Therefore, consumer tends to wait for promotional activities to purchase the product which creates a new margin of sales. Savoy could also use referral marketing to promote their services to attract new customers. The referral marketing is the nature of promotion of the products or services in which the goods or services are referred to others through word of mouth (Berman, 2016). Thus, by using this nature of promotion Savoy would be able to lead its loyal customer refers their services to be availed by other new consumers which would help to add to their sales figures. The benefit of referral marketing to promote products is that it helps the company to win the trust of the customers towards them in an easier manner for availing their services as the referral is provided to others by their friends and families who already have a trustful bond with them. The limitation of referral marketing promotion is that it is time-consuming in nature and require greater investment from the companies to develop a reliable customer base at first to successfully promote their products through referral (Kim & Kim, 2018). Savoy could also use mobile messaging strategy in promoting their services. In this process, they are to inform the target customers about the details of their services through mobile messages. The advantage of mobile marketing promotion is that it is convenient to use and provide instant results. However, the disadvantage with mobile marketing promotion is that it leads to create privacy issues and the platform is too diverse to group target customers for promotion (Natakusumah et al. 2017).

You are to visit a Hospitality or Tourism organisation and observe the design and layout used by the organisation.

How are the design, layout and operational functioning influencing the sales revenue? (AC3.1 – 4.2)

KFC Restaurant ( Erith)

Kentucky Fried Chicken (KFC) operation strategy is anchored on quick service and delivery to target consumers. Their ability to reduce the service time by 5o per cent has helped increase sale and improve their productivity level. To achieve this, KFC has relied on improved on its facility design, layout and operational management to meet the high demand from customers.

a. Design

The current KFC design is aimed at giving the organisation a cleaner and bolder appearance that is distinct and differentiable from that of competitors. The revamped deco includes a colour scheme of red and white painted on the walls, furniture and decorations. The furniture designs are a mixture of the organisation’s traditional tables and new designs that include counter chairs and semi-circular booths. KFC’s exterior design is a calculated mixture of art and bright colour schemes and the organisation’s tagline written in broad letters. Food and beverages are repeat-purchase products and therefore consumers’ preference tends to change frequently. Therefore, the exterior design is aimed at grabbing the attention of customers and reminding them of the organisation’s presence. This helps retain existing customers and attract new customers hence expanding the customer base which leads to high sales revenue.

b. Layout

The layout of KFC facilities entails the interior organisation of the facilities and their strategic location to the target market. Location of KFC facilities is based on the proximity of their customers, the total cost associated, infrastructures such as roads and rail and accessibility to labour. KFC layout is influenced by factors such as the volume of production expected, the fragility of the merchandise to be sold, services to be provided in the facility and also the cost of the operation area. The organisation’s internal and external attractive layout and ideal colour schemes enhance the lighting of the facilities. The stunning arrangement of seats denotes the systematic manner operations practised at the organisation. There is proper work division complemented by experienced staffs which ensures efficiency in cooking and serving processes. The facilities are also designed to accommodate different age groups such as the special block that addresses the specific needs of children.

KFC facility layout contributes to easier supervision and coordination of services increasing efficiency in service provision and delivery of products to customers. It has also helped reduce the challenges of huge movements of people and materials, reduced personnel hazards, improve labour efficiency as well as minimize the challenges associated with merchandise-handling costs. As a result, the organisation has managed to reduce operating expenses and increase sales volumes hence high-profit margins.

c. Operational functioning

KFC’s primary goals are to consistently provide high value and superior quality products to its customers. In addition, the organisation is committed to continuous innovation to improve their service delivery. This has entailed focusing their resources in improving the operations at their restaurants through creating excellent designs, layout and appropriate location of the facilities in areas proximal to the customers. KFC's organisational structure has also helped improve the organisation's work and staff management promoting efficient workflow and coordination of workers. This has resulted in increased production efficiency and minimized time loss and operation costs. Efficient and effective operational functioning of KFC facilities and personnel have contributed to an increase in sales volume and a rise in profit margins. Healthy eating habits, personal hygiene and food ethics are essential factors of production in the modern fast food industry. KFC has incorporated quality control in its production process to help control the quality of food supplied to customers and also ensure food ethics is observed. In addition, the organisation has employed customer feedback to help determine and adjust their products to customer preferences. These operational functions have helped improve consumers' loyalty to the brands resulting in the constant growth of sales revenues.

Assess the personal selling techniques used by your chosen organisation and suggest ways to improve them. Use references to support your suggestions. (AC4.1) – D3

Personal-selling involves in-person interaction with customers to sell an organisation’s products or services. Some of the major personal selling techniques employed by Erith KFC include conversation, solving obstacles and reference selling. KFC also uses conversations as a personal selling technique since consumer buying behaviour in the hospitality industry is characterized by high connection and perception about the brand. Therefore, employees at KFC are trained to maintain friendly behaviour when serving and handling customers which characterize the tradition at KFC. Effective and responsive dialogues help strongly influence the development of a long-lasting positive brand impression on prospective customers (Horner and Swarbrooke, 2007). KFC employees have been taught to selectively organize and interpret information to customers regarding their products to form an attractive and appealing perception in the buyer's mind. The friendly behaviour interlinks with excellent customer services and the soothing environment at KFC facilities which motivates customers to continuously choose KFC over competitors. As a result, a solid relationship is established between customers and the brand which also enhances brand loyalty. Conversation selling has helped KFC build a huge base of loyal customers that have contributed to the organisation's constant growth in sales revenues. I would recommend that employees be trained on how to utilize a call to action strategy to influence more customers purchases. Another personal selling technique used by KFC is reference selling technique. The technique does not involve KFC directly using satisfied customers to convince target customers but rather the restaurant convinces target customers by supplying high-quality products and delivery to create a positive impression on customers. KFC’s primary goal is to supply high value and superior brand than competitors. The excellent packaging of its products has also helped create positive experiences as well as improve the level of satisfaction of customers. Satisfied customers provide positive reviews and feedback in about KFC in trusted review websites that help convince and assure target customers the great value offered by KFC.KFC should consider asking satisfied customers to convince other customers to purchase their product. The KFC uses demonstration as a nature of personal sales technique. In demonstration sales technique, the benefits regarding the product while having it is informed by the sales representative to the customers and the consumers are offered the scope to try the product free of cost to personally ensure about the advantages or facts informed (Zhang & Zhong, 2015). The KFC implements this sales technique by providing customers to try demo products where they are in the process informed about the benefits of having the products and its uniqueness from others. However, the issue raised is that during the demonstration the employees of KFC do not try to receive feedback from the customers regarding their perception about the product so that any objects regarding the product can be addressed. The feedback from the customers after demonstration is required to be availed by the sales representatives so that they can understand the way the product is to be changed to make it fulfil the needs of the customers to ensure it is bought in bulk while the products are actually marketed in the industry (Wang & Yue, 2017). Thus, to improve the demonstration technique of personal selling the KFC sales representative requires receiving feedback from the customers after they try the demo product free of cost to understand the changes to be made finally to ensure proper sales of the product in the market.

To make these improvements or changes in the sales force, propose a sales training programme covering at least two (2) key principles. (AC4.3)

The sales training program requires covering the two key principles to ensure improved sales if KFC's products:

The principles related to making successful communication is required to be considered in the training program so that the sales representatives of the KFC can be informed about the specific verse and words to be used to successfully attract consumers to buy their products.

The principle of accessing feedback after product demonstration is required to be considered in the training program of KFC so that the sales representatives can understand the way they are to finally shape the product to ensure successful sales of it for the organisation.

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