Sales and Marketing Report on TUI Group

This report provides an overview of TUI Group, the largest travel and tourism industry, including their products and services, target markets, and the impact of external changes on their service provision. The report discusses the core and supplementary services provided by TUI Group, as well as the segmentation principles used to identify and target different markets. It also evaluates two key drivers of external change, technology and taxation, and how they affect the service provision of TUI Group.

Sales and Marketing
Report
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EXECUTIVE SUMMARY
It is very important for business to conduct their activities and operations in better
manner. The organisation selected is TUI Group which is largest travel and tourism industry that
provide various products and services to their users, clients and consumers. It has targeted
middle class and above people with age of 20 and above. The change in technology and taxation
are two external change that impact business and their activities.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Introduce company.............................................................................................................4
2. Explain product/service paying attention to core and supplementary service along with
tangible and intangible elements............................................................................................5
3. Using segmentation principles explain target markets and identify and discuss at least two
different target markets...........................................................................................................6
4. Two key driver of external change and evaluate how they affect service provision.........6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Sales is defined as activities in which products and services are sold. On other hand,
marketing is referred as process to get people interested towards goods as well as service being
sold (Bilgicer and et. al., 2015). These both are important function of organisation which helps in
attainment of goal and objectives. The given report is based on TUI Group which was founded in
1923 headquartered at Hannover and Berlin, Germany. It is multinational tourism and travel
company which owns hotels, retail stores, travel agencies, cruise shops services to people. The
aim of report is to discuss about product, services along with their tangible and intangible
elements. It also determine target market and driver of external change.
MAIN BODY
1. Introduce company
The organisation selected for given assignment is TUI Group which is tourism and
hospitality industry. This is regarded as largest leisure organisation in world along with owning
hotels, cruise ships, travel agencies and retail stores (Cao and Li, 2015). It has five European
airlines, largest holiday fleet at Europe and different operators. It was established in 1923
headquartered at Hannover and Berlin, Germany. TUI Group is serving in Europe and North
America. The chairman is Dieter Zetsche and CEO is Friedrich Joussen. It is also listed on
Frankfurt Stock Exchange as well as London Stock Exchange which constituent in FTSE 100
Index. This has operation in 1600 travel agencies, 18 cruise liner, 150 aircraft, 380 resorts &
hotels and 5 million payments are made annually. It origins lie in transportation and industrial
company which is formed as German mining business. Later on, it was formed on 9th October,
1923 as Prussian Mine and Foundry Company. It has employed more than 71,473 employees to
run their business activities and operations in an efficient manner.
TUI is world's leading group in tourism and hospitality sector. This has covered entire
tourism value chain in single roof. This leads in offering services to 27 million consumers with
unmatched and better holiday experience in 180 regions (About TUI Group, 2020). This is
following corporate culture where it is responsibility for environmental, economic and social
sustainability which reflects 20 years of commitment for sustainable tourism. The hotel brand of
TUI includes blue, magic life, sensimar, sensatori, family life. Similarly, cruise lines includes
Hapag Lloyd, Zegrahm Expeditions, TUI cruises, International Expeditions, Marella Cruises. It
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has done sponsorship of Bundesliga club Hannover 96, sponsored football team and so on. It has
created good customer experience by providing their products and services. TUI has earned
revenue of €18,928.1 million, operating income of €893.3 million and net income of
€531.9million. It has airlines in different country such as United Kingdom, Germany, Sweden,
Netherlands and Belgium.
2. Explain product/service paying attention to core and supplementary service along with
tangible and intangible elements
Product is defined as tangible item which is kept on market for attention, acquisition and
consumption that can be seen and touch by people (Datta, Ailawadi and Van Heerde, 2017). On
other hand, service is referred as intangible item which raised from output of individuals that
cannot be seen but felt. In context of TUI Group, it is providing various products and services.
The tangible products which are provided by respective organisation includes holiday packages,
hotels, passengers airlines, resorts and cruise lines. Similarly, intangible services includes travel
agencies. It focus on providing high quality experience to consumers from inspiring as well as
booking to flight and transfer holiday through cruise ship, hotel and others. It is very important
for respective organisation to provide high quality products and services to their consumers in an
appropriate manner for creating of positive and good experience. This also helps them to rise
their brand value and goodwill at marketplace by providing high premium values goods and
services.
In addition to this, there are core and supplementary services which are classified as
tangible and intangible elements (De Keyser, Schepers and Konuş, 2015). Here, service is
divided into two product elements such as core and supplementary services. Core is defined as
collection of benefits and solutions that are delivered to consumers whereas supplementary
services surround core goods. In context of hospitality and tourism sector, supplementary are
categorized with enhancement as well as facilitating services into eights elements. Here,
enhancement services are hospitality, exceptions, consultation, safekeeping whereas facilitating
services includes order taking, payment, information and billing (IDENTIFYING AND
CLASSIFYING SUPPLEMENTARY SERVICES - PRINCIPLES OF SERVICE MARKETING
MANAGEMENT, 2018). These all elements are important to be taken care by organisation while
providing services to their customers which leads to rise in profitability, sustainability along with
enhancement of brand value and goodwill for positive outcomes. Therefore, TUI group has to
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provide different payment options to their consumers, taking right order along with providing
right information and billing to them. The above are the products and service provided by TUI
group along with core and supplementary services given by them to their users, clients and
guests.
3. Using segmentation principles explain target markets and identify and discuss at least two
different target markets
Market segmentation is defined as procedure of dividing potential customer into different
groups, segments and characteristics (Fill and Turnbull, 2016). Segmentation principles are the
rules, regulations which are followed by organisation while segmenting their market. There are
four segmentation principles such as demographic, geographic, psychographic and behavioural
under which they have target market such as:
Demographic- TUI Group has focused both male and female segment with age group of
20 and above. In case of income, they have targeted middle and above group people along with
all types of profession. They provide products as per need and demand of their consumers and
promoting through social media, website and many more.
Geographic- It means depending on geographical location of clients, customers and
many more. As it is serving in North America and Europe location. In case of product and
promotion for these places, they are providing according to requirement and using online mode,
application for promoting their brand.
Psychographic- Each and every people has their own personality, habit, attitude and
lifestyle (Hanssens and Pauwels, 2016). It is very important for TUI Group to consider all such
elements so that they can attain their business goal and objectives. This should be included while
deciding product and promotion channel.
Behavioural- It is knowledge as well attitude about using of goods and services (Icha and
Agwu, 2015). While targeting market on basis of behaviour, it is essential to know about use of
goods by consumers. In case of promotion they can use social media, online advertisement to
create awareness about business and their service. This leads user to buy products and services in
an effective and efficient manner.
4. Two key driver of external change and evaluate how they affect service provision
It is very important for organisation to do analysis of external change which can impact
their functioning of business in appropriate manner so that goal and objectives can be attained.
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The different changes are taken place at business environment that leads them to adopt those in
their own organisation so that effective outcomes are achieved. It affect service provision of
business which are carried out by them. The two current external change which impact TUI
Group and evaluation that is affecting service provision by focusing on product and promotion
are as follows:
Change in Technology- In current scenario, there is rise in technology which impact
business and their functions (Järvinen and Karjaluoto, 2015). The respective organisation has to
adopt technology in their business in order to survive and sustain at marketplace. As this affect
their service provision that are provided by them. The products should be sale online application
with rise in technology. On other side, for promotion online channel should be used such as
social media, website and others. This factors impact each and every business operating their
services at marketplace. In case of failure to adopt then they have to vanish from market and bear
loss. Therefore, it is essential to adopt latest and updated technology in business.
Taxation- This is also an external change which is uncontrollable by organisation while
conducting their activities and operations at market (Lee and et. al., 2018). It also impact on
services provided by TUI Group to their people and consumers. When there is rise in taxation,
then product that are supplied by respective organisation has to increase their prices and
accordingly provided to users, people and clients. Moreover, while doing promotion, they should
also includes their packages, taxes charged by them so that consumers are aware of it. Therefore,
taxation rate keeps on changing from time to time which should be analysed by business and
accordingly they have to set for their products and services in effective and efficient manner.
CONCLUSION
The report concluded that sales and marketing are important functions of organisation in
which one create awareness about products and services and other sale it. In context of travel and
tourism industry, different products and services are offered by business to their consumers in
most appropriate manner. This includes hotels, resorts, cuisine ships, travel agency and others.
They target consumers on basis of class and age which is above 20 age group people and middle
level. The external change impact functioning of business along with their activities and
operations.
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REFERENCES
Books and Journals
Bilgicer, T. and et. al., 2015. Social contagion and customer adoption of new sales
channels. Journal of Retailing. 91(2). pp.254-271.
Cao, L. and Li, L., 2015. The impact of cross-channel integration on retailers’ sales
growth. Journal of Retailing. 91(2). pp.198-216.
Datta, H., Ailawadi, K. L. and Van Heerde, H. J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
De Keyser, A., Schepers, J. and Konuş, U., 2015. Multichannel customer segmentation: Does the
after-sales channel matter? A replication and extension. International Journal of
Research in Marketing. 32(4). pp.453-456.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Hanssens, D. M. and Pauwels, K. H., 2016. Demonstrating the value of marketing. Journal of
Marketing. 80(6). pp.173-190.
Icha, O. and Agwu, E., 2015. Effectiveness of social media networks as a strategic tool for
organizational marketing management. J Internet Bank Commer, p.S2.
Järvinen, J. and Karjaluoto, H., 2015. The use of Web analytics for digital marketing
performance measurement. Industrial Marketing Management. 50. pp.117-127.
Lee, J. G. and et. al., 2018. A new form of nicotine retailers: a systematic review of the sales and
marketing practices of vape shops. Tobacco control. 27(e1). pp.e70-e75.
Madhani, P. M., 2016. Competitiveness and sustaining performance: integrating sales and
marketing. SCMS Journal of Indian Management. 13(1). pp.19-36.
Park, T., 2015. Direct marketing and the structure of farm sales: An unconditional quantile
regression approach. Journal of Agricultural and Resource Economics, pp.266-284.
Piwoz, E. G. and Huffman, S. L., 2015. The impact of marketing of breast-milk substitutes on
WHO-recommended breastfeeding practices. Food and nutrition bulletin. 36(4).
pp.373-386.
Snyder, K., McKelvey, S. and Sutton, W., 2016. All together now? Exploring sales and
marketing integration. Sport, Business and Management: An International Journal.
Syam, N. and Sharma, A., 2018. Waiting for a sales renaissance in the fourth industrial
revolution: Machine learning and artificial intelligence in sales research and
practice. Industrial Marketing Management. 69. pp.135-146.
Online
About TUI Group. 2020. [Online]. Available through: <https://www.tuigroup.com/en-en/about-
us/about-tui-group>.
IDENTIFYING AND CLASSIFYING SUPPLEMENTARY SERVICES - PRINCIPLES OF
SERVICE MARKETING MANAGEMENT. 2018. [Online]. Available through:
<https://www.wisdomjobs.com/e-university/principles-of-service-marketing-
management-tutorial-310/identifying-and-classifying-supplementary-services-
10448.html>.
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