Marketing in Hospitality: Thomas Cook Marketing Strategies Report

This report provides a comprehensive analysis of marketing strategies within the hospitality industry, using Thomas Cook as a case study. It begins with an introduction to marketing concepts in the service industry, including product, selling, marketing, and societal marketing concepts. The report then explores the impact of the marketing environment, including political, economic, social, and technological factors, on the industry. It emphasizes the relevance of consumer markets and the rationale for developing different market segments, such as geographic, demographic, behavioral, and psychographic segmentation. The core of the report focuses on the importance of the marketing mix (product, pricing, place, and promotion) and the specific strategies employed by Thomas Cook, including competitive pricing, premium pricing and affordable rates. The report also discusses the role of the promotional mix, including advertising, public relations, direct marketing, sales promotion, and personal selling, and provides an in-depth look at sales promotion and public relations techniques. Finally, the report highlights the role of marketing research and the formulation of an advertising campaign and marketing plan for providing services to customers.

Marketing
in
Hospitality
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INTRODUCTION
Marketing plays crucial role in order to attract customers in that manner by which
packages can be sold in effective manner. Present report deals with Thomas Cook Ltd engaged in
travel and tourism sector and as such, advertising and marketing is much needed to effectively
lure tourists. Marketing mix is provided and importance is highlighted in report. Furthermore,
pricing strategies are discussed along with sales promotion and public relations in marketing
products and services. In relation to this, role of marketing research is provided and plan for
advertising campaign is prepared. Marketing plan is formulated for providing services to
customers. It will provide good quantum of profits to customers as proper marketing will be
done.
TASK 1
1.1. Concepts of marketing for a Service industry.
Marketing within hospitality industry refers to set protocols for building customer
relationship, delivering and communicating value to customers in a way that it is beneficial to
both; organisation and customers. Marketing concepts are as follows :
 Product concept: This notion runs over the belief that products/services offered is of
good quality and standard. Then customers can easily be lure. The marketing efforts of
company are directed towards increasing the quality of their services. Now, the
Customers within market do take care of the availability of products/services. Further, a
better quality of services with high price can upset the budget of consumers (Grönroos
and Gummerus, 2014) . Selling concept: It offers an idea that with repeat efforts, company could sell off anything
and everything to their consumers. Thus, organisation directs marketing strategies in
accordance with aggressive selling and promotion efforts. But in the long run, this
philosophy does not work as repeated efforts can damage the reputation of company .
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 Marketing concept: It is used for attaining organisational objectives by knowing the
needs and demands of target market and delivering desired satisfaction better than
competitors. This is a modern concept and use of this can help in achieving profits for
long term .
 Societal marketing concept: According to societal marketing concept, company should
do production according to the needs and demands of consumers but it must be done in a
way it maintained and increases the consumers and well-being of society as whole
(Huang and et. al., 2014) .
1.2. Impact of marketing environment over industry.
Political
 Thomas Cook suffers from the
imposition of 'bed tax' imposed by UK
government.
 Employees within travel and tourism
sector face the fear of redundancy.
Economical
 The tourism sector within UK has faced
hard time due to hit of global economic
crisis.
 Global terrorism has impacted
travellers and it has created harsh effect
over the tourism companies.
Social
 Stable and powerful economy of UK
has boosted the business of Thomas
Cook.
 Increase in demand for travel and
tourism has increased the potential
income for Thomas Cook.
Technological
 Improvement in internet and
technology services has increased
operational efficiency of Thomas
Cook.
 Further, introducing innovation
technology within transportation
supports tourism sector.
1.3. Relevance of consumer markets in service industry.
Consumers are the most important persons for marketers of company. The main purpose
behind marketing of a service is to satisfy demands and needs of their consumers. Thus, study of
consumer’s behaviour helps to achieve the above purpose (Huotari and Hamari 2012). The
proper analysis of consumer behaviour helps in following ways :
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 It helps in exact predictions about the behaviour of consumers regarding any products or
services .
 Also, supports in designing products in a way that satisfies the needs and demands of
consumers .
 It helps in deciding the price that customers are willing to pay for that particular
product/service .
 This helps in understanding the factors that affect buying behaviour of particular
customers .
 This assists in creating and retaining customers through online platforms and website
used by Thomas Cook (Johanson and Mattsson 2015) .
 It helps company to create focused marketing strategies regarding their services .
Though, consumer theory is of much relevance to the marketers and companies, it has
certain limitations .
 The drawback of careful appraisal of consumer is that customers do not apply the same
step while purchasing of every product/service .
 Companies need to make more research in their particular target market. It has to
carefully analyse the way consumers approach their brand. Thus, it is time consuming
and an expensive process .
 It becomes difficult to interpret the impact of social and culture influences .
 The ability of marketers to affect customers by studying the buying behaviour is limited .
1.4. Rationale for developing different market segments.
The term market segmentation refers to dividing of markets in smaller sections or groups
that comprise of customers having similar taste, choices and preferences. The segmentation of
marketing can be done by using following segments: Geographic: In this form of market, segmentation of targeted market is done on the basis
of Regions, Countries, example; UK, USA and France, Climate, example; Cold, Hot or
rainy, States. This is used by company to launch different types of services for that
particular market. It uses different strategies for marketing their products/services in
order to attract the target market . Demographic: It is the simplest and the widest type of market segmentation. It divides
target market on the foundation of age, gender, income and nationality. This form of
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segmentation proves to be an effective tool for mass marketing. It helps in analysing the
large amount of data available to company in short period of time for market researches .
 Behavioural: In this form of market segmentation, target market is divided on the basis
of their behaviour, usage and decision-making pattern. This plays an effective role when
company targets it consumers at the time of special events or occasions. They will
indulge in marketing their services during these events .
 Psycho graphic: It uses lifestyles of individual or people, their activities, interests and
opinions to define the market segmentation. It takes into account the psychological
aspects into consideration. This helps in better understanding of the target market .
TASK 2
2.1. Importance of marketing mix to the industry.
Components of Marketing Mix Thomas Cook Travel
Product  It is a travelling company that provides
services related to travel and tours.
 Thomas Cook deals in services of the
foreign exchange facility in more than
26 countries.
 Company deals in all types of holiday
deals. For example; Package, Family
groups and destination wedding, etc.
 It provides other travel related facilities
like: In-flight Services, Travel Money
and insurance (Johanson and Mattsson,
2015).
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Pricing strategy  Thomas Cook opt for competitive
pricing strategy.
 Company has adopted mid-premium
pricing policy to capture a great market
share within tourism sector.
 Reasonable and accessible rates of
company have helped to generate
higher amount of revenue.
Place or Channel of distribution  Company has a strong presences in
international market. This includes
several countries around the world.
 It has created five distinct divisions to
serve it widespread consumers across
the globe.
 Thomas Cook has strong distribution
channel that includes 95 aircrafts and
more than 30000 employees to serve
their targeted market.
 It has created a strong presence over
online platforms.
Promotion  Company has adapted aggressive
strategies t promote their services in
international market.
 It has launched innovative campaigns
ads regarding the services provided by
company.
 Further, it has launched campaigns on
online portals using various social
media platform; like You Tube and
Facebook, etc.
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 It sponsored and organised many
tournaments like; London Olympic
Games in 2012 (Menegaki, 2012).
2.2. Pricing Policies and Strategy applied by relevant industry.
The pricing strategies and policies adopted by Thomas cook are as follows;
 Premium or prestige pricing: In this form of pricing, the p[price of product/services is kept
higher in order to encourage more favourable perception among the buyers. It sets cost of it
services higher than that of their competitors. This creates direct correlation with brand and
the perception of the person in relation to the image of Thomas Cook. As the customers value
the brand and is satisfied with the features of product, Thomas Cook can take advantage of
prestige pricing (Mulhern, 2013).
 Affordable Rates: The services offered by Thomas Cook is affordable by large number of
consumers. This pricing strategy of company help it to gain and attract more consumers to
their list. Also, this pricing policies plays a great role in attracting consumers from developing
nations of Asian markets. Further, this strategy of company help it to gain competitive
advantage over those companies who offer services at cheaper rates.
 Competitive Pricing Policy: This means to set up price of a product/services based on what
the competitor is charging. It help company to avoid price competition and prevents itself
from damaging.
TASK 3.
3.1.Role of the promotional mix.
The term promotional mix refers to decision which relates to promotion of sales of
products/services. The four main elements of promotion mix are:
 Advertising: This paid form of media where common message regarding to the benefits,
availability of product/services and price is given by the company or marketer. It creates a pull
effect by directly appealing consumers to avail or buy them. Advertising is impersonal and
given by and identified company (Lovelock and et. al., 2015). Public relations: It refers to maintaining an effective relation with public, by doing this
company creates goodwill. Public relations evaluate public attitudes. The term public is much
wider in context and it includes shareholders, suppliers, intermediaries and customers, etc.
The development and growth of firm depends upon the support of these parties.
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 Direct Marketing: It refers to that form of advertising where company directly sells their
services to consumers by communicating directly through E-mails, text messaging on cell
phones, online advertising and websites.
 Sales Promotion: It is an element of promotional mix where services is been advertised by
using media and non-media marketing techniques in a given time period improve product
availability or increase consumer demand.
 Personal selling: This element involves selling personally that includes face to face
interaction between buyers and sellers. It is a way two way communication method and it is
highly suitable for selling of complex services/products.
3.3. Role of sales promotion and public relations in promotion techniques.
Five types of sales promotion effort used are;
 Gifts: This strategy is used by the company to attract people to purchase the main product.
The offer is usually combined with a specific purchase. This technique helps the producer to
promote their product more effectively. Similarly, consumers can avail two products at same
time.
 Coupons: This provide people with a discount on certain items purchased by them. This
promotional technique help in attracting large number of consumers to avail the service of
company in off season. This is a beneficial tool for both consumers as well for Thomas Cook.
 Limited time Offer: This drives consumer to avail the services before promotion ends. It
helps to move ticket fares quickly (7 Types of Sales Promotion. By: Lisa Hephner. 2018).
 Holiday promotions: This is an effective tool for companies engaged within tourism and
travel business.
 Discounting: It means to offer a product at lower price than set rate. It is widely used tool by
company has it attracts large number of customers to avail the services provided by firm.
Five types of public relations techniques are;
 Media Relation: This means to establishes relation with organisations, individual related to
media and acting as source of content for them. Relations with Government: This refers to representing company with government
representative with fair competition, consumer protection and risk management. Community Relation: Engaged with local community of the region by encouraging their
support and rewarding them back. It improves company ethical reputation.
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 Crisis Management: Company should be able to handle the crisis effectively. This would help
company to prevent it image from getting ruined.
 Employee Relations: The most effective way of maintain public relations is by encouraging
and maintaining healthy employee relation within organisation.
4.1. Relevance of market research .
The tourism sector operates within dynamic environment that keeps on changing with the
needs and demands of consumers. Along, with this economy of country is becoming more and more
competitive. Market research plays an effective role in tourism sector. It is the best way to increase
customer satisfaction and understand the factors that affect business. The use of market research
within travelling business help company to spot the trends and threats within their sector. Market
research helps to gain competitive advantage as, company is well aware of the needs and demands of
it targeted consumers. Further, it helps to formulate marketing strategies accordance to needs and
wants of targeted market. This helps company to minimize the chances of loss by identifying potential
problems and solutions (Why is Market Research Important for your Business?.2018).
TASK 4.
3.2. Advertising campaign for a services industry operation.
Attached in Flyer.
4.2. Undertake market research for an appropriate product or service.
Question 1: Do you prefer to travel?
 Yes
 No
Question 2: How Often Do you Travel?
 Once in a year
 Once in a six months
 Once in a month
Question 3: Do yo use services provided by Thomas Cook?
 Yes
 No
Question 4: How would you rate the quality of service?
 High Quality
 Neither high nor low
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 Low quality
Question 5: How would you rate the value for money of the services?
 Excellent
 Average
 Below Average
 Poor
4.3.Analyse the suitability of different media for marketing an appropriate product or service
There are various media available to company which are listed below-
Type of Media Suitability
TV It is suitable for company to attract customers in effective way be it
local or international. Advertisements on TV at prime time will be
fruitful for firm as passengers would come to know packages
offered by it.
Print media Print media such as magazines, articles, journals and related media
are quite useful for promoting services by relying on such
marketing media and thus, local customers are able to know offers
given by firm.
Web based advertising It is one of the better option for Thomas Cook Ltd as it has large
international customer base and as such, it is important media as
promotions and discount related offers can be posted on various
social media such as Facebook, Twitter and official website of
firm. Hence, it will be suitable marketing media for company as
method is cost-effective and time saving as well. Thus, promotions
and advertising can be done quite effectively (Shaw, 2012).
4.4. Evaluate the implementation of the marketing plan for an appropriate product or service.
The marketing plan formulated and implemented for the tour package to Dubai. Has shown
the excellent results. Large number of crowds gather from UK , Ireland and other parts of Europe.
People showed knee interest in buying these packages. The marketing strategy of using social media
platform by Thomas Cook shows a great result. Although, the tour package was for all age groups but
the maximum number of crowd attracted was from target market of Young customers. The use of tag
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line of “Book online and Get online” has benefited a lot to company. Though company has suffered a
loss from target market of Old Age group. Only 30% people form both Adult and Old Age group
opted for tour. Thomas Cook could have performed better if it had used Contiki services within tour.
It may attract large crowds from targeted market of Adults. Also, company must have put more
employees in distributing catalogues.
CONCLUSION
Hereby it can be concluded that marketing in hospitality industry is required so that
passengers may come to know about various services being imparted by the organisation. Since,
Thomas Cook Ltd is one of the biggest firm in hospitality sector, international tourists are
present and as such, web advertising is important marketing tool. It will provide greater amount
of customer satisfaction as all the information regarding holiday packages would be available to
them on web only. Furthermore, it is required that proper marketing mix should be implemented
so that promotion can be made and customers are attracted. This will be fruitful for firm as
higher profits would be generated quite effectually.
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