Digital Marketing Strategy - TUI Assignment

Digital Marketing
Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
Development of realistic digital marketing plan.........................................................................3
Analyses of company's online strategies.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Digital marketing refers a procedure of promoting and developing an organizations'
products and services. This study is based on TUI which is a business formed by a Thomson
corporation of Canada Kannan, (2017). It was founded in the year of 1965 by Roy Thomson.
This study is going to show some importance and steps involved ins digital marketing plan. It
will also show the importance of digital and online strategies that help this company in attracting
wider range of customers.
Task
Development of realistic digital marketing plan
Executive summary
TUI Thomson travel agency is a travel and tourism public company. It offers package
holidays, flights, chartered and scheduled passengers airlines services. This study will show TUI
travel agency's vision and digital marketing goals for which it wants to develop its strategies.
Digital marketing is on the rise and plays an important role in attracting customers towards
buying service of the company.
Mission and vision:
In the context of vision it is stated that this company wants to become the world's best
loved and famous holiday company and Mission statement says that it wants to engage more
customers and also make them satisfied and smile. Digital marketing goals:
The main goal of its digital marketing is to increase sales of its services up to 45% each
month.
Situational analysis
Strengths
 It has global presence in different
domains.
 It offers products at affordable and
accessible prices.
 It has good financial stability.
Weaknesses
 It has limited market because of
increased competition.
 It is heavily dependent on technology.

Opportunities
 It has digitized its all activities which
increased its sales.
It has opportunity to grow its business globally
SWOT analysis of TUI, (2016).
Threats
 Government regulations are big threat.
 Climate changes is also the biggest
threat which can decrease its sales.
So, it can be said that by analysing all its internal factors it can remove its weakness and
develop its strengths for being the market leader.
Political factors
1. UK's travel industry including TUI is
facing immense pressure from
governmental regulations like tourism
tax.
Economic
1. Due to fluctuation in the rate of
currency and unemployment rate in this
industry is impacted this company in a
negative manner.
Social
1. Changing demands of people is
impacting this industry.
2. Rise in the consumers' disposable
income increase its sales PEST analysis
of TUI travel agency.
Technological
 Advanced technology and using of
social media by consumers and this
company is impacting in a positive
manner.
On the other hand, it is increasing competition
in this sector PEST analysis of TUI , (2015).
Competitors' analysis
Porter's 5 forces Intensity Explanation
Bargaining power of
consumers
Moderate There are more firms in this
industry than suppliers a lot
which means buyers do not

have many options to choose.
Threat of new entrants Weaker force Cost production in this
industry is too high which
makes this threat of new
entrants is lower.
Bargaining power of suppliers Weak Suppliers bargaining power is
low because as compared to
buyers suppliers are a lot. It
has low switching cost
Competitors' analysis of TUI
travel agency.
Threats of substitutes Moderate There are several firms which
produce substitutes service but
there are few firms who are
low profit margin industry
Competitors' analysis of TUI,
(2016).
Competition among existing
players
High There are few several firms
which are providing the same
features of products at lower
price which makes this threat
high.
Segmentation, targeting and positioning
This company mainly focuses on demographic segmentation. In this type firm target
people from the age of 18-24. The main aim of targeting this segment is this age group of people
belongs to upper middle class and are employed mostly. Using digital marketing strategy is the
positioning strategy as well as providing best features of services at affordable prices.

Marketing mix or 4P's
Products: It sells products under 5 categories and each category has its own value such as
Package holidays, cruise lines, flights, charter and schedule airlines are some products and
services Kingsnorth, (2019).
Place: It sells products through its online website for selling directly to its customers and also
sells to whole seller who then sell to different retailers located all over the country.
Price: It uses competitive pricing based strategy which helps in to being in a competition.
Promotion: It uses multiple channels which includes both traditional and modern like social
media platforms and advertisement on radio and television.
Monetary and evaluation
It can be said that from its digital marketing effectiveness and programs that its services
are more unique than other which attracts number of customers. It has updated its website and
also make an effective use of social media platforms which expose all its services and products
to customers. It can also be said that with the help of E-mail and advertisement approximate 70%
people got influenced and visit this company.
Sales analysis
Year Actual Standard Variation
2016 £10500 £13500 -£3000
2017 £13900 £14200 -£300
2018 £18000 £17200 +£800
Analysis: Sales of TUI travel agency is increasing gradually. This instrumentalism shows that
activities and digital marketing of this company is effective which can increase their morale
confidence.
Cost benefit analysis

Year Actual Standard Variation
2016 £5500 £6200 £700
2017 £7700 £7000 £700
2018 £6000 £6400 £400
Analysis: It can be said that from above cost sheet that the overall cost of its digital
marketing TUItravel agency is decreasing. It means ut can make more money and make itself
beneficial.
Marketing budget
Expenses 2017 2018
Cost of training to staff 600 450
Social media advertisement 8000 6000
Website up gradation 4500 3500
Mail to target customers 650 150
Total expenses 13,750 10,100
Sales 60,000 65,800
Gross profit 46,250 55,700
Analyses of company's online strategies
Online marketing is a type of marketing and promotional activities whose main aim of
developing is to satisfy customers needs. TUICook make an effective use of these online
marketing strategies in order to build the best customer relationship. Some benefits of developing
online marketing strategies are being described as follows:
 Company can provides its all personalized offers because it allows customers to share
and give their personal details.

 It can also increase its sales as well as revenue because many people are investing in
online marketing and channels Dilek & Harman, (2017).
 They can attract its potential customers and attentions of customers by uploading services
and each details through these strategies.
CONCLUSION
From the above study it has been summarized that digital marketing strategies and plan
played a vital role. Digital marketing plan helped an organization in accomplishing its digital
marketing goals and attracting wider range of customers. It includes all external and internal
analysis which also supported the company to become the market leader.

REFERENCES
Books and Journal
Dilek, S. E., & Harman, S. (2017). Hospitality marketing: A historical perspective. In Routledge
Handbook of Hospitality Marketing (pp. 9-20). Routledge.
Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda.
International Journal of Research in Marketing. 34(1). 22-45.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Online:
SWOT analysis of TUI. 2019. [Online]. Accessed through: <
https://www.ukessays.com/essays/marketing/swot-analysis-for-tui-travel-plc-marketing-
essay.php>.
PEST analysis of TUI . 2015. [Online]. Accessed through: < http://fernfortuniversity.com/term-
papers/pestel/nyse4/6910-tui-ag.php>.
Competitors' analysis of TUI. 2016. [Online]. Accessed through: <
https://www.ukessays.com/essays/tourism/an-analysis-of-the-tui-group-tourism-essay.php>.