Travel Master App Launch Strategy

This assignment examines Thomas Cook's plan to introduce a new travel application called 'Travel Master.' It delves into various aspects of the launch strategy, including sources of short-term and long-term finance to support product development. The analysis also explores the role of effective HR planning in recruiting skilled employees to drive sales and profitability. Furthermore, the assignment investigates how Thomas Cook aims to attract its target market towards the new application.

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Managing Human Capital and
Entrepreneurship

Table of Contents
ASSIGNMENT 1.............................................................................................................................3
TASK 1............................................................................................................................................3
1. Executive Summary.................................................................................................................3
2. Company Overview.................................................................................................................3
3. Business Opportunities............................................................................................................4
4. Marketing Strategy..................................................................................................................6
5. Finances...................................................................................................................................9
6. Human Resources..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES Books and Journals.............................................................................................12

ASSIGNMENT 1
TASK 1
1. Executive Summary
From the report it could be evaluated that human resources are considered as capital of
firm and thus it helps in improving the business functions. Thus, it is essential for entrepreneur to
undertake effective resources and thus assess the available funding and human resources so that
competitive edge could be attained in market. Here, the organization has been selected is Thomas
Cook and thus it operates in travel and tourism sector which assesses that there is high boom in
travel industry (Behery, Jabeen and Parakandi, 2014). Therefore, in order to attract target market
it helps business to launch new product or service so that target market could be attracted. Cited
firm introduces innovative product i.e. Travel Master Application that provides different
information about worldwide location so that tourists could be informed about new products or
services offered by firm. The identified product is being launched upon mobile application so
that more and more number of customers could be informed about available products and
services. It is essential for entrepreneur to have significant skills of HR planning so that skilled
workers could be selected in regard to expand the business operations in market. here,
appropriate marketing plan has been prepared that helps in identifying the products or services
being introduced by business in order to influence target customers.
2. Company Overview
Thomas Cook Group Plc is a British global travel company that is listed in London Stock
Exchange. Company was established in 2007 and group obtains number of tour operators and
airlines based in UK, Germany and Belgium. Company provides wide offers to influence its
customers so that they could be attracted towards firm. Here, Thomas Cook has been selected
which helps in providing tour and travel services in market. It has been assessed that Thomas
Cook has been operating in market from last several years and providing high quality services to
customers in the form of tour packages, hotel booking, flight booking etc. There has been high
growth and boom noticed in the tourism industry so that it is essential for firm to introduce
innovative products or services in market so that large number of consumers could be informed
about the products or services and thus influence customers towards firm (Chen, Yao and Kotha,
2009).

Thomas Cook provides attractive tour packages and provide travel information to
customers so that they can carry out leisure holidays at famous tour destinations. There are
various tour operators providing similar services but Thomas Cook focuses upon bringing
innovative products or services in market and thus bring quality products or services so that high
sales could be attained. Business introduces innovative products or services so that travelers
could be informed about new destination and collect feedback regarding improving the services
and attract more number of customers (Luthans, Youssef and Avolio, 2006). Current market
context of Thomas Cook is that it operates in tourism industry and provides innovative packages
to consumers so that they can travel all around the globe. Management carries out effective HR
planning so that recruitment and selection of candidates could be selected in regard to enhance
the sales and profitability of firm in market.
3. Business Opportunities
Proposed new product or service
Here, Thomas Cook introduces Travel Master Application which is very useful for
travelers who are visiting worldwide places. With the help of downloading such application it
helps in providing crucial information to customers regarding the history of destination and
nearby places. Further, using such application, tourists could make their booking of flights, hotel
and tour packages so that they could avail extra discounts and offers. In regard to introduce such
application assists Thomas Cook to identify the potential customers and know their needs and
wants so that they could be attracted towards firm (Mello, 2014). Travel Master Application
provides the information about famous landscapes, museums, nearby famous tourist spots so that
travelers could obtain information about the destination and thus enhances their knowledge.
Also, using the application it helps in providing map to mark their route easily so that
information could be obtained about the destination and thus enhances the brand image of firm in
market.
Target Market
Main target market of Thomas Cook is high class customers from worldwide market.
Thus, company could adopt effective marketing strategy in relation to adopt effective
promotional campaign so that large number of tourists could be attracted towards firm. Travel
Master Application attracts high class customers as it makes their travel plan easier because they
do not have to waste their time in searching for location and also get information on their mobile

about the destination. Also, it is easier for them to make travel booking through using application
and thus high class customers are attracted towards Thomas Cook and enhance their brand image
in market (Ostrom and et. al., 2002). Management of firm introduces effective marketing
strategy to attain high class customers towards firm and provide then detailed information about
new product or service so that sales could be enhanced. Launching such application is very
useful for Thomas Cook as it helps them to provide insight information to consumers and thus
use the same in regard to launch Travel Mobile Application to enhance tourists attraction
towards the worldwide destination.
Unique Selling Points and Value Deliverables off the proposed product or service
Business obtains strong points which are considered as USP and thus it helps in
influencing customers towards firm. Main USP of Thomas Cook regarding launching of Travel
Master Application is that it provides detailed information about the destination on customers
mobile through application. Such technology is very innovative and no competitors provide the
same information to them (Sheldon, Sun and Sanders, 2014). Further, another value deliverables
of Travel Master Application is that consumers can books their tour packages, flight ticket and
hotel booking online through application. It also helps in providing travel map to customers
through which they can travel to new destination.
Window of opportunity
SWOT analysis
Strengths
 It helps in providing assistance to customers in regard to visit worldwide destination.
 Also, provides detailed information about the place and nearby historical and natural
places (Storey, 2014).
 It is highly used by travellers to check the route as well as gain information about
destination.
Weaknesses
 It is high technology application and therefore only used by small number of people.
 It is not easy for business to promote the application.
 Company has limited marketing budget for promoting the application because each and
every consumer do not prefer to book their travel package through application (Ulrich,
2013).

Opportunities
 Thomas Cook could collaborate with different hotel and airline company as well as tour
operators in order to provide attractive packages.
 Also, carrying out partnership with different tour operators helps them to enhance their
travel customers (Cooper, 2009).
Threats
 Company need to protect their travellers information and make it confidential so that it
could not be used by other tour operators.
 There are large numbers of competitors and thus firm faces tough competition in industry.
PORTER FIVE FORCES
 Bargaining power of buyers- It is high as there are large number of customers with
different needs and wants therefore, business is not able to identify the needs of every
individual and provide them appropriate quality products or services. Thus, bargaining
power of buyers is high and therefore, firm needs to understand the same in regard to
provide them appropriate travel products or services (Doganova and Eyquem-Renault,
2009).
 Bargaining power of suppliers- It is high as there are various number of suppliers
available in market offering best prices of hotels and resorts. Therefore, firm need to
make effective relation with such suppliers and provide them timely payment in order to
make strong relation.
 Threat of rivals- It is also high as there are varied number of competitors available in
market providing similar products or services. Thomas Cook faces tough competition
from rivals and therefore, they need to provide unique products or services so that sales
could be enhanced (Drucker, 2014).
 Threat of substitute products- It is low as travel packages could not b substituted by
anything else. Therefore, Thomas Cook could sale their packages to customers.
 Threat of new entry- It is low as it requires huge investment and thus it is not easy for
businesses to enter in the travel industry.
4. Marketing Strategy
Marketing strategy adopted by Thomas Cook introduces Travel Master Application that
helps firm to use social, print and commercial media for creating awareness and offering

information to different type of smart phone owners and travelers who are searching the
destination places to visit and spend their time with friends or relatives. Through adopting
effective market strategy it helps in offering promotional offer to customers through
downloading the application and thus provides discounts and offers on online booking of hotel
and airlines etc (Edwards, Delbridge and Munday, 2005). Thomas Cook introduces smart phone
application and provides free of cost downloading of application and thus no maintenance cost is
being required for updating the Travel Master Application and thus update the application timely
as per the needs of customers. Thomas Cook is also required to analyze the prices of the
competitors application and thus offer products and provide the application on different platform
such as Android, Windows and iOS.
Following is the marketing plan that is being adopted by Thomas Cook in order to adopt
effective sales process such as-
 Motivate individuals- Management of Thomas Cook encourages individual to improve
its sale through introducing Travel Master Application so that company promotes its offer
and discounts so that it provides additional discounts coupons to attract customers and
enhance the sales and profitability of firm in market. Also, business introduces another
way of promotion i.e. sharing the application link with other friends so that connectively
could be made stronger and large number of people could download the application and
thus satisfy their needs of travel (Vogel, 2010).
 Awareness- Further, it is essential for Thomas Cooks management to undertake such
step and thus helps in influencing customers towards firm and make them aware about
the Travel Master Application and thus inform customers about travel package through
using social media and digital channels (Bradley, 2015). Thus, it helps firm to enhance
the market share of firm and thus provide high quality services to customers.
 Reach potential clients- Management of Thomas Cook uses Travel Master Application
and thus reach potential customers so that they could be easily communicated. Here,
interaction is being done with the consumers and thus brand image of firm could be
enhanced. Cited firm reaches customers and enhance the sales and profitability of firm
and attain competitive edge in market.
 Sales- Thomas Cook aims to introduce Travel Master Application team and improve the
sales of tour packages through getting online bookings. It also helps firm in minimizing

the cost and thus adopt effective marketing strategy so that expenses of firm could be
minimized and thus adopt effective advertising and promotion so that sales could be
improved in market (Dixon, 2015).
Following are the different marketing tool used by Thomas Cook in order to promote the
business in market such as-
 Social media marketing- It is one of the effective marketing tool that helps in
promoting Travel Master Application and promote the technique so that social media
promotion could be done. Management of cited firm undertakes effective social media
strategy so that sales of firm could be enhanced.
 Print media marketing- Further, Thomas Cook introduces Travel Master Application so
that promotion of application is being done through adopting different print media
sources such as newspapers, magazines etc. Cited firm uses such method that helps in
influencing large number of customers and enhance firm in market (Behery, Jabeen and
Parakandi, 2014).
 Promotional offer- It is another marketing tool being used by Thomas Cook that helps
them to introduce promotional offer and thus provide special offers and discounts to new
customers who have downloaded the application and thus wishes to use the application
for booking their travel packages. However, company could introduce such schemes that
those person are downloading the application through transferring it to each other will get
additional 10% discount on their hotel bookings (Chen, Yao and Kotha, 2009).
Sales promotion of Thomas Cook could be done in regard to analyze the popularity of
Travel Master Application among customers. Thus, it is essential for firm to undertake effective
marketing tools so that company could introduce innovative travel packages and thus bring
innovation through introducing effective marketing strategies and thus sales and profitability
could be attained. It is the best way through which Thomas Cook introduces Travel Master
Application and thus provides them offers and discounts of vacation so that they can be informed
about destination. It is the best way through which sales projections could be attained so that
current market trends could be identified in travel and tourism sector and thus download the
application and provide them additional discounts of 10% (Mello, 2014). Thus, such application
is highly used among travelers and they carry out mouth publicity so that large number of
consumers could be informed about products or services launched by Thomas Cook.

5. Finances
It is essential for entrepreneur to arrange for funds so that target market could be
attracted. There are different short and long term finance required in order to enhance own
capital and take loan from bank as well as financial institutions. Thomas Cook at the time of
introducing any new products or services obtain fund from different sources so that needs could
be met. Through obtaining loans firm could invest in different sources such as fixed assets,
buying technical equipments, training workers, fees, administrative expenses etc. Thus, for all
such requirements firm needs to obtain finance in order to grow and expand the business
operations in market (Ostrom and et. al., 2002). Further, it is essential for Thomas Cook to adopt
effective funds so that revenue and expenses related to launch Travel Master Application and
thus influence customers to provide high quality products or services in market. Following is the
income projection in regard to assess the revenue and expenses related to Travel Master
Application and influence consumers towards product.
Income projections-
Income Statement (Pound) Year 1 Year 2 Year 3
Revenue
Sales from services rendered 8,203,10.29 10,664,03.38
13,863,24.3
9
Less: Cost of goods sold (40%) 3,281,24.12 4,265,61.35 5,545,29.76
Gross Profit 4,921,86.17 6,398,42.03 8,317,94.63
Operating Expenses
Market Research 2000.00 0.00 0.00
Administration expenses 14190.03 14191.03 14192.03
Marketing/ Advertisement 69152.85 70000.00 70000.00
Rent 12000.00 12000.00 12000.00
0.00 0.00
Insurance 12000.00 12000.00 12000.00
Salary 360000.00 360000.00 360000.00
0.00 0.00 0.00
Employee training fee 5000.00 0.00 0.00

Service Fee 4,101,5.51 4,101,5.51 4,101,5.51
Miscellaneous Expenses 25384.00 25384.00 25384.00
Depreciation 0.00 3000.00 3000.00
Less: Total Operating Expenses 5,407,42.39 5,375,90.54 5,375,91.54
Operating Profit -4,855,6.22 102251.49 294203.09
Less: Interest 6000.00 6000.00 6000.00
PBT -5,455,6.22 9,625,1.49 2,882,03.09
Less: Tax 0.00 0.00 0.00
Net Profit -5,455,6.22 9,625,1.49 2,882,03.09
Thomas Cook also uses appropriate funds in regard to obtain own capital and thus take
loan from bank in regard to carry out the business functions. It is essential for business to adopt
effective working capital and thus require business to take long term decision so that effective
services could be rendered effectively. Finance manager of firm requires to carry out financial
projection in regard to make proper budget and thus identify the revenue and expenses made
during launching the new product or service i.e. Travel Master Application so that large number
of customers could be attracted towards firm (Sheldon, Sun and Sanders, 2014). Through
identifying the financial project it helps business to gain insight that firm is able to earn how
much net profit could be earned by business in the next three years. Also, the money invested
within firm for launching the new product or services is 100000 Pound.
6. Human Resources
It is essential for human resource department of business to identify the potential needs of
skilled workers so that they could be retained within firm for long term. Individual requires
effective skills and capabilities so that Travel Master Application could be effective launched in
market. thus, it is significant for firm to identify the needs of manpower required in carrying out
business functions so that different departments involved within Thomas Cook planning to
launch the new product could influence large number of customers towards firm. Specific
training program is being prepared that helps in providing learning and development to workers
which helps them to improve their skills and capabilities and thus participate effectively within
the launch of new product (Ulrich, 2013).

HR department of Thomas Cook carries out effective planning so that Travel Master
Application aims to plan different policies and practices so that it could be employed in order to
promote the application and more number of customers could be registered with the company.
Influencing people is one of the main HR implications that results in identifying the needs of HR
planning at the time of introducing new product or service so that success could be attained.
With the help of carrying out effective planning it helps business to attract customers and
enhance more download of application in order to improve travel bookings (Cooper, 2009).
Further, carrying out effective recruitment and selection process results in selecting
skilled workers so that effective strategies could be adopted so that HR planning could be done
in an effective and efficient way. Thomas Cook HR manager identifies the requirement of
promotion of new product or service and thus train its workers in regard to provide them
appropriate information about the application so that large number of customers could be
informed about the same (Drucker, 2014).
CONCLUSION
It can be concluded from the study that Thomas Cooks introduces innovative product or
service in market so that large number of customers could be attracted towards firm. There are
different sources of finance i.e. short and long term finance so that new product or service could
be launched in market. Introducing Travel Master Application so that target market could be
attracted towards firm. Management of Thomas Cook carries out effective HR planning in regard
to recruit and select skilled employees so that they could carry out effective workforce planning
and enhance the sales and profitability of firm in market.

REFERENCES
Books and Journals
Behery, M., Jabeen, F. and Parakandi, M., 2014. Adopting a contemporary performance
management system: A fast-growth small-to-medium enterprise (FGSME) in the UAE.
International Journal of Productivity and Performance Management, 63(1). pp.22-43.
Chen, X. P., Yao, X. and Kotha, S., 2009. Entrepreneur passion and preparedness in business plan
presentations: a persuasion analysis of venture capitalists' funding decisions. Academy of
Management Journal. 52(1). pp.199-214.
Cooper, R. G., 2009. Generating breakthrough new product ideas: Feeding the innovation
funnel. Product Development Institute.
Doganova, L. and Eyquem-Renault, M., 2009. What do business models do?: Innovation devices
in technology entrepreneurship. Research Policy. 38(10). pp.1559-1570.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Edwards, T., Delbridge, R. and Munday, M., 2005. Understanding innovation in small and
medium-sized enterprises: a process manifest. Technovation. 25(10). pp.1119-1127.
Luthans, F., Youssef, C. M. and Avolio, B. J., 2006. Psychological capital: Developing the
human competitive edge. Oxford University Press.
Mello, J., 2014. Strategic human resource management. Cengage Learning.
Ostrom, E. E. and et. al., 2002. The drama of the commons. National Academy Press.
Sheldon, P., Sun, J.J.M. and Sanders, K., 2014. Special issue on HRM in China: differences
within the country: International Journal of Human Resource Management. The
International Journal of Human Resource Management. 25(15). pp.2213-2217.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge
Revivals).Routledge.
Ulrich, D., 2013. Human resource champions: The next agenda for adding value and delivering
results. Harvard Business Press.
Vogel, H. L., 2010. Entertainment industry economics: A guide for financial analysis gift
industry. University Press.
Online

Bradley, C. J., 2015. Target Market Segment Strategy. [Online]. Available through:
<http://smallbusiness.chron.com/target-market-segment-strategy-63724.html>. [Accessed
on 16th April 2017].
Dixon, P., 2015. Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel.
[Online]. Available through: <http://www.globalchange.com/future-of-travel-industry-
tourism-hotels-hospitality-and-business-travel.htm>. [Accessed on 16th April 2017].