Marketing and Business for the Service Sector

This report discusses the marketing plan for TUI, a leading leisure, travel and tourism firm. It includes an overview of the organisation, analysis of current situations, aim & objectives, target market, marketing mix, action plan, budget and monitoring & evaluation.

Marketing and Business for service
sector

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Overview of chosen business.......................................................................................................1
Analysis of current situation (including SWOT and PEST, Porters 5 Forces etc)......................1
Porter’s five forces analysis.........................................................................................................3
Aims and Objectives....................................................................................................................4
Target Market..............................................................................................................................4
Marketing Mix.............................................................................................................................4
Budget..........................................................................................................................................6
Monitoring & Evaluation.............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing plan is regarded as the operational document which represents the promotional
strategies that a firm would execute for producing and reaching their targeted marketplace.
Moreover, this is crucial for organisational as it also called roadmap which assists in developing
and delivering their items or services to potential consumers. Additionally, this is defined as set
of practices that are applied to promote its brands or products. For accomplishing this report, the
chosen company is TUI which is the leading leisure, travel and tourism firm. Its headquarters is
in Hanover, Germany. The topics which are going to be discussed in this report are overview of
organisation, analysis of current situations, aim & objectives and target market. Moreover,
marketing mix, action plan, budget and monitoring & evaluation are also discussed in this report.
MAIN BODY
Overview of chosen business
TUI is considered as the holding firm and performs the tourism business. Additionally, this
facilitates a board range of travel & holiday services. Moreover, they involves tour operations,
cruise ships, resorts, hotels and others and their touristic airlines business operates medium for
long haul aircraft. In addition to this, respective organisation operates otels into majorly holiday
region within several brands like Robinson, TUI Magic Life, TUI Blue, and TUI Suneo. They
also renders luxury cruises into German-speaking countries as well as cruise ships into other
luxury marketplace. Along with this, the firm performs tour operations into Germany, UK and
others.
Analysis of current situation (including SWOT and PEST, Porters 5 Forces etc)
SWOT ANAYSIS
Strengths Weaknesses
The availability of unique travel packages
with customization.
High brand recognition and history in
travelling industry in United Kingdom
Lack of recognition outside UK
Ineffective performance when it comes to
sustainability
Opportunities Threats
 Increasing affordability of tourism
packages.
 Intense competition fro domestic and
international brands
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 Collaborating with airlines and hotel
chains to develop unique tourism
packages.
 Rise of airbnb for booking
accommodation during travelling.
PEST ANALYSIS
Political
Political factors sensibly influence the show and the advancement on the movement
business. Where Political weakness produces negative openness and the bet wisdom influences
the voyagers decisions which achieves an unquestionable decrease in traveller appearances
Economical
The movement business is one of the creating endeavours, fuelling the turn of events and
works and has transformed into an essential piece of the universe of economy. In light of
Recession, a plunging energy was seen because most of the movement business heads were
disabled by the raised level of fixed assets and less prepared to manage their transporters and
hotel industry(case study). Instabilities in fuel costs, Exchange rates and cash changes, The
Growth of negligible cost airplanes has lead to monetary bet in the movement business.
Socio-culture:
Change in lifestyle has changed the solicitations of client; they have become more expense
fragile and has extended its advantage for new experiences. Purchaser has refined one more
performance of WAIT AND SEE ATTITUDE worked with by most recent conceivable second
purchase achieving late arrangements. As the movement business incorporate advancement of
people to different regions which calls for social struggles. The movement business has
furthermore Led to commercialization of neighbourhood culture, standardization of protests and
change to traveller demands.
Technology
Usage of information development gave a lift to the movement business for reservations and
administrative errands. With the presence of the web, visit overseers can now spread out their
activities and make open legitimate information, conquering new clients.
PORTER’s FIVE FORCE MODEL
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Porter’s five forces analysis
 Intensity of competition: In this part of the porters five forces analysis model the level
of competition in a specific industry is identified in order to understand its current
competitive landscape. TUI faces high intensity of competition in the industry because
there are many different travel companies present in United Kingdom offering diverse
travel and tourism portfolio along with other hospitality services. Some of the industry
rivals of TUI are Trailfinders jet2holidays travel, Republic virgin holidays, Emirates
holidays Expedia British Airways holidays and the cooperative travel. The large number
of rivals in the tourism operating and travel agency industry increase the competition for
the respective organization as the company has to compete for very low market share
with large number of businesses.
 Bargaining Power of consumers: The second point of the analytical model refers to the
influence of consumers over the prices of the products and their capability in changing or
lowering product prices. In case of travel and tourism operating industry the bargain
power of consumers is high because their price sensitivity is high. Consumers are price
sensitive as last number of domestic as well as international businesses compete with
each other to offer consumers best packages related to travel and tourism at affordable
prices which makes them price sensitive if a company increase is there product price even
by a slight amount as they have large number of options from which they can choose an
affordable alternative. In this way large number of competitors in the industry results in
high bargaining power of consumers for the travel in tourism operating industry.
 Bargaining Power of suppliers: Suppliers in the travel and tourism operating industry
exert low power over businesses because the suppliers include hospitality establishments
such as hotels and transportation organisations such as airlines. The number of suppliers
for a tourism package are huge including large number of hotels and other hospitality
organizations along with large number of airlines offering transportation services which
reduces their power over travelling agencies or tourism operating companies. This means
that TUI faces low bargaining power of suppliers.
 Threat of Substitution: Airbnb acts as a suitable substitute product for tourism and
travelling agencies and operators. Substitute products fulfil the same need of the
consumer but a different from a specific product. Airbnb is a suitable substitute because
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consumers can easily book accommodation as well as travel services through Airbnb.
This means that the right of substitution for TUI is high.
 Threat of new entrants: The capability of new entrant in the market to reach highest
market share is defined as the threat of new entrants. In case of TUI, the threat of new
entrance is low because entering the travel and tourism operating sector requires high
capital investments along with profound knowledge of the global tourism industry to
create lucrative travelling packages for consumers. In addition to this brand image and
recognition is also needed to succeed in this industry which cannot be attained easily by
new entrants.
Aims and Objectives
Aim
“To evaluate the enhancement of customer engagement and sales in business”. A case
study on TUI.
Objectives
 To increase the customer engagement by 10% within a year.
 To enhance the sales of TI’s products or services by 15% in 1.5 years.
Target Market
Target market can be described as the customer base which is consider by organisation for
rendering its services. In order to increase the customer engagement and sales, TUI group targets
the tourists and traveller which is situated into various country. They focus upon facilitating
services who are willingness to travels and tourists. In addition to this, it incorporates clients of
above 18 years.
Marketing Mix
Products: TUI offers different things and organizations for clients and address the issues of
numerous objective business areas on account of the extensive extent of high and dependable
things they offer. They offer different events, for instance, All extensive, lavishness complaints,
family. Sea side, last second breaks, unique first evening, weddings, ventures, city lodgings, sea
side hotels and side visits/city moves away from in a lot of countries, for instance, Spain, Italy,
France, Canary Islands as well as extended length protests like Florida. They similarly offer
various organizations, for instance, basically flight and housing deals, cash exchange, in-flight
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benefits, vehicle enroll, air terminal organizations, security and event tips/counsel. They offer
different group events to resolve the issues of different objective business areas, this is a direct
result of them offering insignificant cost events, or excess complaints and packs like the
'Sensatori', 'Tui Blue' and 'Platinum' range. TUI works 380 motels and 16 journey sends
generally.
Price: TUI can develop their objective business areas to resolve the issues of the majority of
target markets, for instance, families, luxury areas, adults, 18-30's for nightlife with the great
many events they offer-sensible events and lavishness events. TUI offer periodic assessing In
seasons, for instance, New Year and December, they offer restricted costs on their excursion
packages and breaks to entice people to book an event
Place: TUI has 650 retail shops in the UK where clients can book an event or a break. They work
online through their association website, through their application, some TUI retail shops are put
inside stores and they similarly joined along with experts like Independent Travel Agents. TUI
offers events in various complaints, including Barbados, Canada, Cape Verde, Costa Rica.
Croatia, Cyprus, Dominican Republic, Egypt, Germany, Iceland, Italy, Jamaica, Lapland,
Maldives, Malta, Mauritius, Mexico, Morocco, Portugal, Slovenia, Spain, Sri Lanka, St Lucia,
Switzerland, Thailand, Turkey, UAE and USA.
Promotion: TUI do convectional exhibiting adverts in high-thickness regions, TV plugs and they
produce first class freebees. TUI moreover center around their electronic advancing as the
development design has changed over the long haul and most genuine business areas have an
online diversion or the like or can get to the web to see the notification from TUI. TUI have an
association site that as well as having the choice to book an event, it highlights information, thing
information and any missions or arrangements they have. This is where the headways will
happen a model being ' Book an event before 31.
People: TUI have many staff people used, a couple of occasions of these consolidate travel
organizers, client support subject matter experts, air terminal check in and flight attendants. It is
essential that these laborers are 'sensible, social capacities, disposition and organization data to
give a client the assistance they expect and are paying for. Planning, people improvement and
building strong client associations are crucial for license TUI to procure high ground and be
significant solid areas for a that gathering will pick.
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Process: TUI's process are very unsurprising and the same, each help a client persuades should
be comparative concerning post purchase, time of obtainment, their excursion and after it. This
integrates cycles, for instance, giving visit information, messages, plans, liaising with expert
centers, organizing and costing visits, web labelling and the reservation structures and booking
programming.
Physical Evidence: TUI's logo is drawing in and eye getting, it is prominent. This consolidates
the handouts having the logo as well as letters and messages clients get and the plane having the
logo on it too. Their retail stores should have a fair environment so potential clients feel content
with booking their housing through TUI. As well as their planes, they should be flawless and
especially stayed aware of to give extraordinary impressions to their clients. Expecting that this
is met and clients are satisfied they will undoubtedly repeat purchase. TUI's site is direct and
easy to use, there is straightforward course stacks of titles and associations with which clients
can pick. In the event that in any case a client can't comprehend what they are looking for, there
is a help fragment and a decision to talk with a web based client care specialist.
Budget
Cash Flow from
Operations Year 1 Year 2 Year 3 Year 4 Year 5
1. Cash Sales * $20,000.00 $22,000.00 $24,200.00 $26,620.00 $29,282.00
2. Payments for
Credit Sales ** $12,000.00 $13,200.00 $14,520.00 $15,972.00 $17,569.20
3. Investment Income $5,000.00 $5,500.00 $6,050.00 $6,655.00 $7,320.50
4. Other Cash Income $2,500.00 $2,750.00 $3,025.00 $3,327.50 $3,660.25
A. TOTAL CASH ON
HAND $39,500.00 $43,450.00 $47,795.00 $52,574.50 $57,831.95
Less Expenses Paid
(during month)
5. Inventory or New
Material $15,000.00 $16,500.00 $18,150.00 $19,965.00 $21,961.50
6. Owners’ Salaries $12,000.00 $13,200.00 $14,520.00 $15,972.00 $17,569.20
7. Employees’ Wages
and Salaries $15,000.00 $16,500.00 $18,150.00 $19,965.00 $21,961.50
8. Supplies and
Postage $3,000.00 $3,300.00 $3,630.00 $3,993.00 $4,392.30
9. Advertising and
Promotion $2,500.00 $2,750.00 $3,025.00 $3,327.50 $3,660.25
10. Delivery Expense $1,500.00 $1,650.00 $1,815.00 $1,996.50 $2,196.15
11. Travel $2,000.00 $2,200.00 $2,420.00 $2,662.00 $2,928.20
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12. Legal and
Accounting Fees $1,000.00 $1,100.00 $1,210.00 $1,331.00 $1,464.10
13. Vehicle Expense $0.00 $0.00 $0.00 $0.00
14. Maintenance
Expense $700.00 $770.00 $847.00 $931.70 $1,024.87
15. Rent $5,500.00 $6,050.00 $6,655.00 $7,320.50 $8,052.55
16. Utilities $800.00 $880.00 $968.00 $1,064.80 $1,171.28
17. Telephone -$400.00 -$440.00 -$484.00 -$532.40 -$585.64
18. Taxes and
Licences -$500.00 -$550.00 -$605.00 -$665.50 -$732.05
19. Interest Payments -$900.00 -$990.00 -$1,089.00 -$1,197.90 -$1,317.69
20. Insurance -$300.00 -$330.00 -$363.00 -$399.30 -$439.23
21. Other Cash
Expenses -$800.00 -$880.00 -$968.00 -$1,064.80 -$1,171.28
B. TOTAL
EXPENDITURES $56,100.00 $61,710.00 $67,881.00 $74,669.10 $82,136.01
Capital
Purchase of Fixed
Assets
-
$21,000.00 -$23,100.00 -$25,410.00 -$27,951.00 -$30,746.10
Sale of Fixed Assets
C. CHANGE IN
CASH FROM
PURCHASE OR
SALE OF ASSETS
-
$21,000.00 -$23,100.00 -$25,410.00 -$27,951.00 -$30,746.10
Financing
Payment of Principal
of Loan -$1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Inflow of Cash from
Bank Loan
Issuance of Equity
Positions
Repurchase of
Outstanding Equity
D. CHANGE IN
CASH FROM
FINANCING
-$1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
E. INCREASE
(DECREASE) IN
CASH (E = A – B ± C
± D)
$73,600.00 $83,060.00 $91,266.00 $100,292.60 $110,221.86
F. CASH AT
BEGINNING OF
PERIOD
$5,000.00 $78,600.00 $161,660.00 $252,926.00 $353,218.60
G. CASH AT END OF
PERIOD (G = F ± E) $78,600.00 $161,660.00 $252,926.00 $353,218.60 $463,440.46
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MEET MINIMUM
CASH BALANCE
Monitoring & Evaluation
Monitoring and controlling is considered as the procedures to evaluates the whole marketing
plan performance and controlling any wastage or unusual actions. During this, marketing team
determines the performance with standard one as well undertake appropriate measures for
meeting the actual set of standards. Additionally, this is crucial for monitoring progress so tht it
may control over any deviation & restructure the strategies if required. TUI may also monitor
and control their action through key performance indicators (KPI).
CONCLUSION
As per the above report, it has been concluded that marketing plan is vital for tourism
industry. As it is the operational document which represents the promotional strategies that a
firm would execute for producing and reaching their targeted marketplace. Moreover, this is
crucial for organisational as it also called roadmap which assists in developing and delivering
their items or services to potential consumers. Additionally, this is defined as set of practices that
are applied to promote its brands or products. In addition to this, for analysing the situation of the
firm SWOT, pest and porter five forces analysis are performed. Apart from this, KPI is use to
monitor and measure their performance.
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REFERENCES
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Grain, 31(4), p.36.
Jarek, K. and Mazurek, G., 2019. Marketing and Artificial Intelligence. Central European
Business Review, 8(2).
Neacsu, M.N. and Platon, O.E., 2019. Using SWOT analysis to substantiate marketing strategies
for balneo-tourism. New Trends and Issues Proceedings on Humanities and Social
Sciences, 6(8), pp.30-38.
Setiyawati, E., Indradewa, R., Syah, T.Y.R. and Fajarwati, D., 2021. Marketing Plan for
Business Startups ‘Jamu Partnership’in Indonesia. International Journal of Research and
Review, 8(08), pp.327-333.
Stevens, R.E., Loudon, D.L., Wrenn, B. and Warren, W.E., 2021. Marketing planning guide.
CRC Press.
Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs, M., Labib, A., Laughlin, P.,
Machtynger, J. and Machtynger, L., 2020. Artificial intelligence (AI) in strategic marketing
decision-making: a research agenda. The Bottom
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