Marketing essentials for travel and tourism of TUI Assignment

Marketing essentials for
travel and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives...................................................1
TASK 3............................................................................................................................................4
P4. Produce a basic marketing plan for a tour and tourism organisation to meet marketing
objectives................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is an important process of every organisation. Basically marketing is depends
on customers demand, customer preferences, customers loyalty, customer relationship . It is
mostly uses in modern arse( Blythe and Martin 2019). It can say that marketing is the one of
important competent of business management. This report is based on TUI organisation. This
organisation is founded in 1965 and headquarter is in ingland, UK. TUI is dealing in holidays.
They provided resorts and hotels, airlines facilities and cruses trip for there customers. This
resort is focused of the marketing functions and roles and responsibilities of the marketing. Here
they are also discussed of process of marketing mix. Competitive analysis also done here with
the another organisation. how develop a marketing plan for achieving the marking objectives of
organisation with the contact of to organisation. marketing is the basis of every production
organisation that's by they are focusing on this concept.
TASK 1
Covered in PPT
TASK 2
P3 Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives
There are different strategies which are applied by every organisation for successfully
growing the business. The marketing mix are effective tools which give marketing functions a
systematic way to enhance the profit sale of any organisations. In references with TUI, marketing
manager critically monitors the process which are followed by workforce in order to operate
business activities in company. Some of the important strategies of marketing mix are product,
place, price, promotions, process and physical evidence. The TUI manager gives major emphasis
on process strategy which are helpful in increasing customer relationship. In present context a
comparison of marketing mix of two business organisations are mentioned below:
TUI Thomas Cook
Product The TUI are broad industries
which are currently dealing in
The Thomas Cook are travel
agencies which are providing
1

travel and tourism sector
where products are hotel
accommodation including
basic amenities and sales
packages which are give to
primal and existing customer.
financial service to customer.
Their products are foreign
exchange, visa, passport and
travel insurance to customer
who are consuming airline
services.
Price The price of TUI is estimated
cost which will allow
customers to avail the goods.
The price on packages should
be in standards where
revenues could be highly
generated
The Thomas cook have applied
mid premium pricing policy on
target potential customer. To
explore market and increase
revenue in tourism industries .
Place The company has sell their
product in 500 retailer shop
across the country. So that
customer can directly consume
the product when they are
visiting hotels.
Thomas cook has expanded its
business in global nations to
serve their potential customers.
They have divided their
operations in different
countries.
Promotions The manager uses online
medium like social media for
promoting their goods through
small video advertisement on
various websites and
smartphone applications. As
most of the user are online
user.
The company has majorly
focused on promoting their
package through unique
advertisement which generate
interest between customer to
gain more knowledge about
special offers.
Process The manager of TUI give
emphasis on providing their
product on various retail shop
The leaders are currently
using print and electronic
media for promoting special
2

so that it could be easily
available to their target
customer.
offers through various
channels like televisions, radio
and travel magazines for
promoting their products. They
recently launched campaign
through portal by their creating
their own websites for
customer feedbacks.
Physical Evidence The managers have tied up
with 500 supplier for for
promoting their goods at
retails shops. Through unique
packaging of product so that it
could easily attain the attention
of consumer who are visiting
the store.
The organisation have opened
2926 stores and 97 aircraft's to
give facility to million
customers. This initiatives
taken by manager help to
attract more tourist.
Process The manager give emphasis on
their employee so that could
effectively communicates with
supplier. So that equal profit
could be shared.
The leader of TUI have
majorly focused on their
employees several training
session have been provided by
management. So that customer
relationship should be
improved.
From above comparison it has been concluded that TUI manager should focus on the
process strategies for promoting their goods and services. A systematic plans should be framed
by leader for operating activities capturing competitive advantage in business. So that more
revenue could be generated by TUI. Also leader should focus on fluctuating need and demand of
consumers to satisfy them and improve consumer relationships. This will help manager to
increase sales profit for TUI.
3

TASK 3
P4. Produce a basic marketing plan for a tour and tourism organisation to meet marketing
objectives.
Marketing plan is strategy which which provide detail outline of marketing for the
coming year. It basically include overview of business and promotion goals. Marketing plan help
in tracking, performance of organisation in order identify achieve desired goals (Khuong and
Huong 2016 ). It also provide insight, to target respective audience and there needs. Companies
use various marketing strategies as tool before launching new product in the market. In the
context of TUI, company should focus on making new marketing plan, which will help the
organisation to identifying the current market position, and there loyal customers. This kind of
strategies will help in reducing future uncertainties and it ensure the success of new services
which are provided by the TUI to their customers.
Overview of TUI: Tourism union international (TUI) is a UK tour and travel company
founded in 1965. It is one of the biggest tour and travel company across UK,they deals in
different sectors like travel agencies agencies, hotels and airlines, cruise and retail stores. TUI is
trying to identify the new ways to provide better services to there customers (.Kotoua and Ilkan
2017). So the company planning to introduce artificial intelligence in order to take advantage
over competition.
SWOT analysis: It is a framework used to identify the organisation position to create
future strategic planning and proper execution. SWOT analysis help in evaluating internal and
external factors, of company. In other words, it is prepared to facilitate fact based data, strength
as well as weakness of an organisation. On the basis of swot company should avoid grey areas
and should focus on important task to achieve there desired aims.
Strength Weakness
 TUI is one of leading service
company in the world. Organisation
is highly progressive and deals in
various product and services.
 TUI do not indulge there cost in
advertisement like other companies. Due
to low promotional activities TUI have to
face extreme level of competition.
Opportunities Threats
4

 TUI should focus more on research
and development in order to capture
large market share. Company should
use advance technology and
innovative methods in hospitality
services to establish there business.
 Introduction of new companies with
innovative technologies is one of the
major threat to TUI. Changes in rules and
regulation of the government is a threat to
organisation.
Objectives:
Objectives are one of the important factor to any organisation to archive goals. TUI
should focus on SMART objective in case of offering new product and services which are
addressed below:-
“To raise the profits of company by 12.5% by the next one year through the launch of
marketing campaigns”
“To enhance the share of company by 15% in global market by the end of 6 months
through extensive social media marketing”
Marketing mix:
Marketing mix is tool that company used to follow its marketing objective to analysis the
market and target customer in order to expand their business. It also help in evaluating elements
which impact the demand of product and services offered by an organisation. TUI can use
marketing mix as a tool to increase there efficiency of new and existing product and service. TUI
can be more dynamic and can improve their performance in deliverable of their services. There
are four main components of marketing mix which are stated below.
Product: Quality of product plays an important part in creating the image in the mind of
the customers (Law 2012 ). The success rate of TUI hospitality is totally depends upon how well
the product is. It is crucial for TUI to know whether their customers are satisfied with the product
or vice versa.
Price: Prise is important factor for a company, TUI can charge high price to provide
better services to satisfy the demands of customers.
5

Place: TUI uses one of the most advance method of distribution channel effectively to
provide quality services, which has created trust among the customers. With the help of internet,
customer can reach companies menu, location and product which they offer.
Promotion: For promoting their product offering TUI should take advantage of social
media and of online marketing services to capture large market share (Matikiti, Kruger and
Saayman 2016). Most of the companies used print media and electronic mode for promoting
their product.
Pestle analysis:
It is a method to which is used to figure out environmental factors which may impact on
the companies performance and efficiency. Most of the organisation use this tool usually when
they start new venture in different countries. The factors which may effect TUI are described
below.
Political factors: Government impose various rules and regulation to monitor the
activities of company. Reduction in slabs of VATS rate will provide monitory benefits for TUI
to survive in the competitive world.
Economical factor: countries economy play a vital role in any business, if there is hike
in price, it will effect TUI business and will increase the production and service cost for TUI and
for customers.
Social factor: It include individual perception, belief, attitude and behaviour. TUI should
keep all things in mind and provide the services according to the demands of their customers.
Though tourism industry must provide peace environment in order to facilitate there customers.
Technological factors: TUI is using innovative technologies to provide better experience
to the customers (.Nedelea, Ali and Alamgir 2017). Company is using social media as a platform
to promote their services and trying to identify the needs and wants of individual.
Strategies for business:
Segmentation: TUI is launching AI (Artificial intelligence), trying to capture the
educated segment who are aware of new technology that the company is going to set up in their
business.
6

Targeting: TUI will try to target those global countries, where people are educated and
more self-aware of new technology (Okumus and Cetin, 20Pappas 2016). Company is targeting
the upper middle class who are willing to pay fair amount for luxury.
Positioning: If TUI wants to gain a position for their offering, they must identify
different customer chart ism preposition, it will help TUI to build their position in the global
market.
Implementation plan for promotional launch:
Different organisation have various promotional tools to target their customers. TUI is
using social media as a tool for promoting their product. Company have prepared their budget on
he basis of marketing plan.
Particular Amount
In social media platform (30%) 60000
On sales promotion (15%) 25000
Newspaper (10%) 15000
Advertisement on T.V.(20%) 40000
CONCLUSION
From above report it has been analysed that marketing plays an important role in
improving market share and brand value of TUI in hospitality sectors. The role of manager is
very crucial in communicating with other departments in order to operate business activities.
There are chances where the conflicts arises due to improper allocations of funds between
department that drastically hampers production and manufacturing of hotel products in an
organisations. The development of strong bonds between supervisors will result in proper use of
marketing mix for improving market sales for TUI. While comparing with Thomas Cook it has
been analysed that TUI needs to give emphasis on process strategies that include improvement of
service quality. Henceforth marketing manager should effectively plan strategies that are
required to be followed by workforce in order to gain competitive advantage in hospitality
sectors.
7

REFERENCES
Books & Journals
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Buhalis, D. and Amaranggana, A., 2013. Smart tourism destinations. In Information and
communication technologies in tourism 2014 (pp. 553-564). Springer, Cham.
Cooper, C., 2013. Essentials of tourism. Pearson Higher Ed.
Dinçer, M. Z. and Alrawadieh, Z., 2017. Negative word of mouse in the hotel industry: A
content analysis of online reviews on luxury hotels in Jordan. Journal of Hospitality
Marketing & Management. 26(8). pp.785-804.
Dwivedi, Y. K., Kapoor, K. K. and Chen, H., 2015. Social media marketing and advertising. The
Marketing Review. 15(3). pp.289-309.
Eletxigerra, A., Barrutia, J. M. and Echebarria, C., 2018. PlaBlythe, J. and Martin, J.,
2019Buhalis, D. and Amaranggana, A., 2013.Cooper, C., 2013Dinçer, M. Z. and
Alrawadieh, Z., 2017.Dwivedi, Y. K., Kapoor, K. K. and Chen, H., 2015.Eletxigerra,
A., Barrutia, J. M. and Echebarria, C., 2018Florence, and et. al., 2015.Gardiner, S.,
Grace, D. and King, C., 2014Halpern, N., 2016.Jolliffe, L., 2016Kastenholz, E., Cece
marketing examined through a service-dominant logic lens: A review. Journal of
destination Marketing & Management. 9. pp.72-84.
Florence, and et. al., 2015. The Effects of the Marketing Mix on Choice of Tourist
Accommodation by Domestic Tourists in Kenya.
Gardiner, S., Grace, D. and King, C., 2014. The generation effect: The future of domestic
tourism in Australia. Journal of Travel Research. 53(6). pp.705-720.
Halpern, N., 2016. The marketing of small regional airports. In Air transport provision in
remoter regions (pp. 99-118). Routledge.
Jolliffe, L., 2016. Marketing culinary tourism experiences. In The handbook of managing and
marketing tourism experiences (pp. 363-378). Emerald Group Publishing Limited.
Kastenholz, E., Carneiro, M. J. and Marques, C., 2012. Marketing the rural tourism experience.
Strategic marketing in tourism services. 16. pp.247-264.
Khuong, M. N. and Huong, T. T., 2016. The Influence of Social Media Marketing on
Vietnamese Traveller‟ s Purchase Intention in Tourism Industry in Ho Chi Minh City.
Journal of Economics, Business and Management. 4(4). pp.280-285.
Kotoua, S. and Ilkan, M., 2017. Tourism destination marketing and information technology in
Ghana. Journal of destination marketing & management. 6(2). pp.127-135.
Law, R., 2012. Everything you need to know about internet marketing.
Matikiti, R., Kruger, M. and Saayman, M., 2016. The usage of social media as a marketing tool
in two Southern African countries. Development Southern Africa. 33(5). pp.740-755.
Nedelea, A. M., Ali, M. B. and Alamgir, M., 2017. Factors behind destination loyalty-a study on
tourism destination. Revista de turism-studii si cercetari in turism. (23).
Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination. Journal of
Destination Marketing & Management. 9. pp.340-346.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services. 29. pp.92-103.
8

Pike, S. and Page, S. J., 2014. Destination Marketing Organizations and destination marketing: A
narrative analysis of the literature. Tourism management. 41. pp.202-227.
9