Marketing Analysis of Thomas Cook in Travel and Tourism Sector

Verified

Added on  2019/12/03

|28
|10895
|37
Report
AI Summary
This report provides a comprehensive analysis of marketing principles within the travel and tourism industry, utilizing Thomas Cook as a focal point. The report commences with an introduction to fundamental marketing concepts such as wants, needs, demand, products, and markets, specifically within the context of travel and tourism. It then delves into the impact of the marketing environment, considering both micro and macro factors, and their effects on individual businesses like Thomas Cook, with specific reference to tourism in Morocco and Egypt. The report also examines consumer motivation and demand, highlighting the factors that influence travel decisions. Furthermore, it explores the importance of strategic marketing planning, marketing research, and the influence of marketing on society. The analysis extends to the marketing mix, covering product, price, and place elements, and emphasizes the significance of the service sector mix. Finally, the report assesses the role of promotional mix elements, including an integrated promotional campaign for Thomas Cook, concluding with a summary of the key findings.
Document Page
Marketing in Travel and
Tourism
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Core concepts of marketing for the travel and tourism.......................................................1
P1.2 Impact of marketing environment of individual travel and tourism business....................2
P1.3 The factors affecting consumer motivation and demand in the travel and tourism sector. 4
P1.4 analysing the principles of market segmentation................................................................5
TASK 2............................................................................................................................................7
P2.1 Importance of strategic marketing planning.......................................................................7
P2.2 Relevance of marketing research and market information to manager..............................8
P2.3 Influence of marketing on society.....................................................................................10
TASK 3..........................................................................................................................................11
P3.1 Issues in the product, price and place elements of the marketing mix.............................11
P3.2 Importance of service sector mix elements to the travel and tourism sector....................13
P3.3 Concept of the total tourism product in terms of Thomas Cook Plc................................14
TASK 4..........................................................................................................................................15
P4.1 Integrated role and nature of promotional mix.................................................................15
P4.2 Integrated promotional campaign for Thomas cook.........................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
Document Page
INTRODUCTION
When a person leaves his normal surroundings in which he lives and goes to another
environment in order to engage him to activities there it is the state when tourism occurs. On the
other hand, when organization and individuals at the destination promotes those activities with
the help of various sources of advertisement, then it becomes a form of marketing. There are
many tourism agencies or organizations who work tourism (Ritchie, 2006). They apply different
type of strategies in order to attract individuals from other countries with the help of different
promotional activities; this is known as marketing in travel and tourism.
Present report is about Thomas Cook which is the world’s one of the best known firm in
tourism. This report covers the concepts and principles of marketing in the travel and tourism
sector (Thomascook, 2014). Further, it covers the role of marketing as a management tool in
travel and tourism. Moreover, it covers the roles of marketing mix which are used in travel and
tourism sector. Lastly, it also covers use of promotional mix in travel and tourism.
TASK 1
P1.1 Core concepts of marketing for the travel and tourism
Marketing for travel and tourism includes all the organizations which offers services and
products agents of hotels, travel, entire infrastructure and inhabitants of destination which tourist
can use. In order to understand the structure of tourism market, characteristics of the products
offered should be defined (Carter, 2007). Products offered by tourism have special characteristics
which are not to be shared with other sectors. In accordance with the case, that is a summer
holiday has been created to Egypt and Morocco. In this context, following are the core concepts
of marketing for the travel and tourism:
Want: Want can be defined as the desire for something. It can only be develop when
firms used their promotional tools effectively. In this context, Thomas Cook would
understand the requirements with the help of researches and surveys of the areas on
which they have thought of providing their services. In accordance with the case, that is
tour to Morocco and Egypt (Pesonen, 2013). Firm should focus all the important areas
through which they would be able to provide their customers with enjoyable tour. In this
regard, Thomas Cook can work with suppliers present in morocco or Egypt so as to
Document Page
provide Wi-Fi, transport facilities to the travellers. It further involves for providing
entertainment facilities.
Needs: Need for something arises when the delivered services or product provided by
Thomas Cook satisfies all the aspect which customers. In this regard, need of tourists is
to get access to quality food, water and accommodation facilities. Thomas cook can do
this by working on close coordination with the hotels so as to provide them with good
food. This will help the consumers to get access to not just traditional food items but
others like continental, Mexican and Italian. The hotels can further provide access to raw
water and accommodation facilities (Rizzi, 2014).
Demand: Demand is the requirement which customer directly states to the firm. In this
the customers are clear regarding the exact thing which they want. In accordance with the
case, customers demand for getting security for their life. No one would travel to a place
where they find risk for their life (Dolnicar, 2007). Thomas Cook should provide their
customers with insurance towards the designed tour. Summer holiday trip to Morocco
and Egypt should be designed in such a way that customers would feel confident and safe
(O'Connor, 2010).
Products: In travel and tourism sector product for Thomas Cook are the tour packages
designed at various destination places. Here, Thomas Cook can offer attractive holidays
to tourists for places in morocco (Pesonen, 2013). This would on a very afforadalbe rates
so as to ensure that tourist is interested to be a part of this tour. However, tours to Egypt
may not be friendly ones on account of terrorism (Verma, 2012).
Market: Market can be defined as the set of actual as well as potential buyers that interact
with the seller. In present context, the seller is Thomas Cook and buyer is tourists who
wish to go for a tour to Morocco and Egypt. In this regard, Thomas cook is required to
open offices where customers can go and buy the holiday package. It can also ensure that
the tour to Morocco and Egypt is present online so that clients have a chance to book
there holidays.
P1.2 Impact of marketing environment of individual travel and tourism business
Marketing environment can be determined as the marketing team are refereed as the
forces and factors that affect the organizations of maintaining successful relationship and the
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
ability to build relationship with the customer's. It can be understood with the help of micro and
macro environment (Blanke, 2007). Surrounding of marketing has appreciable effect on the
enterprise of Thomas Cook on the tourists to explore Morocco and Egypt. Below given is the
impact of marketing environment:
Micro environment: Following are the impact on Egypt and Morocco: Customers: Customers are the one because of which firms get to know whether there are
gaining profit or loss. In this context, it is very essential for Thomas Cook to understand
all the requirements of the customers and accordingly providing those services which
would help them in attracting customers. For the summer holiday trip to Morocco and
Egypt will be successful only when organisation provide the entire required thing which
would satisfy their customers. The impact of consumers on Morocco and Egypt tour is
that if the designed tour package lacks in areas of quality or security features, then
consumers are likely to get dissatisfied. They should focus on providing their customers
with high quality services with the help of which Tomas Cook would be able to attract
more and more customers and it would also help the firm to gain profit.
Competitors: There are many other tourism agencies who are competitors of Thomas
Cook. These competitors may have same holiday tour to Morocco and Egypt. As a result,
the services provided by the firm should be very good compared with its competitors or
else customers will prefer that firm which provide them better services at cheap price. As
far as the holiday to Morocco and Egypt is concerned, competitors would be affected if
the Thomas Cook provides their customers with discounted offers or if they provide them
with additional services at same price. This type of strategy would surely affect the
competitors of Thomas Cook by reducing their sales.
In this regard, the need on part of Thomas cook is to make the packages really attractive
in terms of pricing so that consumers stick to Thomas cook rather than moving towards
competitors. In this regard, a medium pricing level is a must. His is as low pricing can
impact Thomas Cook by reducing profits. High pricing can impact the company by
making them move towards other competitors. Suppliers: They are one who delivers the required materials to the customers like food,
transportation, accommodation, etc. it is very important that Thomas Cook select capable
Document Page
suppliers who would be helpful in satisfying the needs of the customers or else this would
negatively affect the firm. The impact on the suppliers on the holiday to Morocco and
Egypt is that if the suppliers provide food, accommodation and entertainment in the best
possible manner then the consumers are likely to get happy and satisfied. This may led to
a positive impact thereby making them come back.
Macro-economics: Following are impact on Egypt and Morocco: Politics: In both the countries that is Morocco and Egypt encourages the patrons to
investigate the amazing beauty by liberalization to modulate so that the organization can
enter the market easily (Devashish, 2011). Business opportunities are provided by the
legislative head in order to ease the norms in systematic agreements with respect to
security. For this purpose of customer’s security, Thomas Cook should provide insurance
so that customers feel secured. Impact of this would be positive as customers would
develop confidence and trust towards the firm. They are likely to come back for the
services offered by Thomas cook to more such tours in future. In present scenario, Egypt
being a tourism hub may ked to cause losses due to security issues. Economy: In terms of economic conditions of up, it has been found that consumers do not
afford tours during recession period. This is as they face the issue related to lack of
money and cannot afford much traveling (Chevalier and Serre, 2012). This led to
bringing a reduction in the overall traveling activities. But when an improvement is seen
in economy then people show an interest to travel to Egypt. But security can again act as
a concern. In this regard it is suggested to Thomas cook to look for better destinations
rather than focusing on Egypt and morocco.
Demographic: Thomas cook is required to lay special emphasis on the demographic of
their customers (Ndubisi, 2006). This is as these are people who are being targeted by the
company. Hence focusing on demographics is likely to make sure that the packages are
attractive. In this regard, of the company targets couples then packages of adventure to
Morocco can be made. In the same way, if they are targeting students then focus will be
on Egypt educational centres.
Technology: In order to connect large stream of people in an effective way, increased
globalization is helpful in triggering the marketeers. Improvement in technology has
Document Page
helped in building up strong relationship with the individuals. Impact of technology
would be positive as Thomas Cook would be able to have an estimate regarding the
number of customers would purchase the summer tour to Morocco and Egypt. In this
regard, of the technology is safe and secured then Thomas cook can attract the consumers
thereby increasing overall profits.

P1.3 the factors affecting consumer motivation and demand in the travel and tourism sector
In various dimensions that are of supply and demand perspective has changed with the evolution
of the travel and tourism sector. There are many factors because of which the consumer's
motivation and demand depends (Chevalier and Serre, 2012). In large extent it has enhanced
the competition in the industry. Following are the key factors which affecting the
consumer’s preferences:
factors that motivate the
customers to go to
MOROCCO
factors that motivate the
customers to go to Egypt
Social In case of Egypt the family
members being children and
youngsters may show an
interest to go to Egypt. They
may thereby act as a
motivating factor (Chevalier
and Serre, 2012).
In case of Morocco the social
motivating factors can be
reference groups that have
paid a visit to Morocco
(Fesenmaier and et.al, 2012).
These can act as a major
source of recommendations as
they would be most trusted by
the consumers.
Personal Egypt is a place full of
adventure. Hence the
Morocco is a cultural place
with a life full of traditions.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
motivating factor can be
youngsters in the age group
between 10 to 35 years
(McDonald, 2012).
Hence the tourists who wish to
have a peaceful traveling may
prefer that place.
Psychological The tourists who wish to have
learning about the ancient time
of Egypt, desserts as well as
pyramids may be motivated to
pay a visit to that place.
The consumers having
religious beliefs may be
motivated to pay a visit to
Morocco (Uzama, 2009).
P1.4 analysing the principles of market segmentation
Market segmentation can be defined as the marketing strategies which are helpful dividing the
target markets. Further, it is also helpful in developing strategies which will help in achieving the
goals and objectives of the organization (Moore and et.al, 2009). In this regard, there can be use
of MASH criteria so as to carry out effective segmentation. In this regard, the selected segment
must be measurable with respect to size, power and profile of the consumers (Ossig and Graf,
2002).
The selected segment must be accessible meaning it should be easy to reach as well as served
as per the requirement of tour package planned for Morocco and Egypt. In the same way, the
segmentation must be Substantial thereby making it large enough as well as profitable so as
to serve the requirements of the tourists. It should also be homogenous so as to be able to
cover up the needs of all.
Marketing planning can be defined as the process of determine the current market position as
well as the strategy for a given time period. In this regard, the can be use of SOSTAC model to
explain the marketing process.
S – The first step is towards carrying out a situational analysis by making use of
techniques such as SWOT and Pestle.
O – Then comes the process of objective setting which will determine what is to be
achieved by launching tour packages to Morocco and Egypt.
Document Page
S – Strategy development is the next stage that will aid in identifying how the tour
planned to Morocco and Egypt can be made successful. It can be done by putting
emphasis on Segmentation, positioning, targeting strategy.
T – This stage is the tactical development so as to find out how the given strategy can be
achieved (Perry and Riege, 2000).
A – Then comes the action stage which is all about implementing the plan by making use
of financial, human as well as operational resources.
C- The last stage is of control with the help of which it can be found out as to whether
there has been an achievement with respect to the tour to be organized for Morocco and
Egypt or not (Blanke, 2007).
In this respect, the need is to carry out a proper marketing segmentation so as to help in the
overall process of marketing planning. In accordance with the case, main aim of Thomas Cook is
to promote their summer holiday package to Morocco and Egypt. Hence, Thomas cook can make
use of three marketing segmentation types that are discussed below.
Demographic Thomas cook can make use of this
segmentation to target families. According they
can plan the tour to Morocco and Egypt by
keeping the requirements of families in mind.
In this regard, they can give discounts for a
family of four and more members. In the same
way, they shold focus on arranging for
entertinmet actiitires ofr children. This will
help to attract sales followed by retaining
consumers.
In the same way, if they are targeting couples
then package should be full of adventure.
Geographic Thomas cook can make use of geographic
segmentation by understanding the micro
factors of Egypt and Morocco. This will further
Document Page
help the company to plan for airlines as well as
the suppliers who are going to be a part of this
tour. According to this, Thomas Cook makes
packages according to the different sites which
are most preferred by the tourists being
students, couples or families (Riege and Perry,
2000).
In this regard, students would prefer going to
educational centers.
Couples would prefer more of adventure in
Egypt and Morocco
Family will prefer entertainment dentitions.
.
Behavioural This segmentation type can focus on the
behaviour, attitude as well as lifestyle f
consumers while deducing a tour package for
Morocco and Egypt. In this regard, adventure
packages can be launched for Egypt and
religious packages can be meant for Morocco.
TASK 2
P2.1 Importance of strategic marketing planning
Strategy is the plan for action which is designed with an aim to accomplish the long term
goals and objectives of the enterprises. Thus, in order to attain some strategy manager of firm has
to take help from the different marketing means which includes different promotional tools such
as social media, newspaper and television advertisement etc (Devashish, 2011). In this context,
Thomas Cook is planning for organizing its tour in the countries such as Egypt and Morocco.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Thus, with an aim to prepare the plan for the respective trip, manager of cited firm has to prepare
the strategic marketing plan. This can be prepared by them by taking help from the approach
such as SOSTAC model. In this context, application of SOSTAC model with respect to Thomas
Cook new holiday plan is depicted in below: Situational analysis (S): The formation of marketing plan starts with the situational
analysis. In this context, here manager of Thomas Cook has to analyse the situation
which is prevailing in the external environment of company. This can be performed by
the cited corporation by taking help from the tools such as SWOT and PESTEL analysis.
Objective setting (O): After conducting the situation analysis, in the given step manager
of Thomas Cook will set specific objective with regard to its new tour areas such as
Morocco and Egypt. For example, with regard to the given trip following objectives are
set by the manager of cited firm:
To raise the profits of firm by 20% by organizing tour in Morocco and Egypt. To give the information about the specific trip by using different promotional means. Strategy development (S): In this section, with an aim to attain the above mentioned
objectives different type of marketing strategies will be set by the manager of Thomas
Cook. It includes segmentation, targeting and positioning tactics. With regard to Morocco
and Egypt holiday trip, demographic segmentation criteria can be used by the manager of
cited firm. In this context, firm can segment its customers on the basis of age. For
example, firm can organise adventurous trip for an individual who are young (Falk,
2011). In the similar way, firm can also arrange varied sight scene trip for the travellers
who come with their family in the given destinations. In addition to this, for both given
customers differentiated targeting marketing tactic can be used by the Thomas Cook. In
this regard, different type of benefits of given tour can be communicated by the manager
to the respective customers. Furthermore, by using the features of given tour, positive
image with respect to the given trip can be positioned in the mind of buyers. The features
will include buyers stay in the renowned hotel of Morocco and Egypt along with free
breakfast and dinner facilities. Tactical development (T): In the given phase, efforts will be taken by the manager of
Thomas Cook with regard to attain the specific tactic which is being framed by it. For
Document Page
example, in order to give information about the particular tour assistance will be taken by
the manager of Thomas Cook from different marketing tactic such as placing ads in
social media website and using TV as the mean of promotion etc. Thus, through this way
only large number of buyers will be attracted by the corporation. Action (A): In the given step, the plan of organising tour in Morocco and Egypt will be
given practical implementation. Here, in this phase manager of Thomas Cook will sign
the agreement with different airline and hospitality firms. This is done with an aim to
organize the tour in given countries in a systematic way.
Control (C): In the given step, regular feedback from the customers will be taken. For
example, some customers have given negative feedback regarding the type of services
which they have received during their stay in Morocco hotel. Then in the given
circumstance significant action with regard to the respective hotel will be taken by the
cited firm. This is done in order to improve the quality of services offered by different
hotels and airline firms to whom Thomas Cook has agreement (Huang, 2009).
In this regard, it can be said that for the firm it is essential to prepare the strategic plans.
The detailed explanation about the same is depicted in below:
Through strategic plan, a road map for attaining the framed objectives will be prepared.
For example, Thomas Cook has the objective to raise the profits of firm by 20% by
organizing tour in Morocco and Egypt. By communicating the given objective to the
employees of firm, their direction can be set towards the right approach. As a result of it
framed objective can be achieved by the corporation.
The tactical plan framed will also lead firm in terms of preparing varied kind of services
for the respective holiday. For instance, on the basis of strategic plans Thomas Cook can
gather view point of its buyers. Thus, on the basis of same cited firm can plan its travel
package. For example, here firm can launch the Morocco and Egypt package on the basis
of paying capacity of its buyers. Here, organisation can introduce cheap holiday package
for the buyers who do not have much paying capacity. In the similar way, expensive
holiday package can be prepared for the buyers who belong to upper income class
category.
chevron_up_icon
1 out of 28
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]