Marketing Essentials for Travel and Tourism: Report Analysis

This report delves into the core aspects of marketing within the travel and tourism industry, using Thomas Cook as a case study. It begins by outlining the roles and responsibilities of the marketing function, emphasizing market research, planning, product design, branding, and innovation. The report then explores the interrelationships between the marketing department and other functional areas such as HR, finance, and operations, highlighting their collaborative efforts in achieving organizational goals. A significant portion of the report is dedicated to a comparative analysis of the marketing mix (7Ps) of TUI and Thomas Cook, examining product offerings, pricing strategies, distribution channels, promotional activities, customer service, and operational processes. Finally, the report concludes by proposing a marketing plan tailored to meet the specific objectives of a travel and tourism company, providing a strategic roadmap for success. This report provides valuable insights into effective marketing practices within the travel industry.

Marketing Essentials for
Travel and Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Roles and responsibilities of marketing function...................................................................1
P2 How marketing is related to other functional areas...............................................................2
LO 2.................................................................................................................................................3
P3 Comparison of marketing mix...............................................................................................3
LO 3.................................................................................................................................................8
P4 Marketing plan.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an important function of every company which helps in communicating
products in the market and increase its market share (Pike, 2015). Marketing department has
various functions like providing customer service, creating brand value, promotion,
advertisement, market research etc. which help company to sustain in the market by gaining
competitive advantage. Present report is based on Thomas cook company which is a travel
agency providing various packages of tours. It also provide online booking facilities. Report will
include the roles and responsibilities of marketing function, how it is related to other functional
areas. Report will provide a comparison of 7P's of marketing which is used for achieving
organisational goals. And lastly report will produce a marketing plan to meet the objective of
company.
LO 1
P1 Roles and responsibilities of marketing function
Marketing plays an important role in the company. This department deals with exchange
of products and services (Pike, 2016). There are various functions performed by marketers which
are as follows:
 Collect information from markets: It is an essential element which need to be
considered. Thomas cook company need to do market research and collect data from
customers like what they want? In what quantity? Price? What kind of promotion they
like? etc. This types of information is collected through market research and then used in
production of product. Thomas cook will use this information in planning the tour
packages. It is also beneficial for company to expand in global markets because through
the marker research they get to know about various techniques, strategies and needs of
customer (Kotoua, and Ilkan, 2017).
 Market planning: To meet the objective and goal of the company marketing department
need to make plans. Thomas cooks company need to make plan to increase the market
share of the company. If the company's market share is 25% and firm want to hike its
share by 40% than marketers need to formulate plan to increase the level of promotion
and attract target market to offer the product (Pike and Ives, 2018).
 Product design and development: It is one of the most important function played by
marketing department of Thomas cook. They design the packages of tours as per the
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needs and purchasing power of customers. For product selling product designing is an
important element (Stanford, 2017). If company's product design is good then it is
attractive and sell more. Attractive product design will encourage company in entering in
new markets. Marketing department design product according to the customer and
innovate the product on regular basis due to change in external environment. This helps
company in development of product.
 Branding: Every company wants that it has special product identity and name. Thomas
cook marketers build its brand image by providing high quality service to customers and
solving the queries of customer quickly (Mahadevan, 2018). Giving a unique identity of
business which is identified easily through large group of competitors is called branding.
Marketing department communicates the product to customers in such a way that it
creates brand positioning. It increases brand value of the company and creates a positive
image.
 Innovation: This marketing function is beneficial for company to develop its product in
the market and generate demand. Marketers continuously innovate its product by
implementing new technologies and ideas (Vorobjovas‐Pinta and Hardy, 2016). Thomas
cooks also innovates its services regarding tours and travel. They analyse the market and
use technologies to provide services to customers. Innovation may lead to globalisation
of company as customers will come from different country to use product or services.
P2 How marketing is related to other functional areas
Marketing department plays a very crucial and critical role in the organization. It is
considered as the lifeline of the company. It has the overall responsibility of growing the
revenues, capturing the large market share and generating a great profit margin by conducting an
extensive market research. Apart from this, it is also responsible for identifying the customer
need and wants and attracting them (Dimanche and Andrades, 2015).
Marketing department works in collaboration with other departments like HR,
production, logistics, finance, research, operations etc. and help these in some or the other way to
achieve the goals and the objectives and hence this link forms the backbone of the company.
Marketing department with HR department
HR has a significant role in the company. The main task of the HR department is to
recruit the skilled personnels that can bring success to the organisation. While the HR
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department brings the qualified masses to the company, the marketing department through these
employees communicate the branding essentials in the market. Talking about the travel industry,
the main role of HR is to recruit the best travel agents that have the potential. These travel agents
in turn, by communicating the various services and facilities attract the wide range of prospective
customers and generate a broad customer database for the company (Das and Mukherjee, 2016).
Marketing department with finance department
Finance department is mainly responsible to cater all the financial needs of the company
as well as making the sound financial decisions. It is mainly involved in planning the availability
of the funds and making their proper allocation to different parts of the organization like assets,
equipments, stocks etc. In travel industry, the finance department ensures that they are exposed
to the minimum financial risks. They prepares various reports like general ledger, profit and loss
statements etc. and decides how much cash inflow will incur from various tourism products.
Based on this, the marketing department advertises various products and packages (Kotoua, and
Ilkan, 2017).
Marketing department with research department
The research department serves as an important platform in providing the competitive
edge over the competitors in the most sustainable manner. It constitute the individuals which
mainly focuses on innovation & creativity by developing the new products and modifying the
existing products therefore they design the innovative products within the budget constraints.
The research department after analysing the needs & wants outlines various tour packages for
their customers and directs the marketing department for the advertising. For example the
research department designs different packages ranging from various transportation &
accommodation facilities. These packages are then communicated to the customers according to
their needs (Pike and Ives, 2018).
Marketing and operation& logistics department
Operations department is held accountable for coordinating with the customers & other
department of the company. It is directly involved in end to end activities and are the primary
link between customers and the company. This department in travel industry is responsible for
making bookings and flight tickets, visa and insurance and helping customers with their queries
(Pike, 2016).
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LO 2
P3 Comparison of marketing mix
BASIS TUI THOMAS COOK
Product TUI has a broad categories of
products and every product
service is provided under
different product line.
Company has differentiated
product with different features
which is provided to the
customers (Vorobjovas‐Pinta
and Hardy, 2016). It helps
company in competing in the
market. Its products are of high
quality so customers are happy
to pay high price. Company
need to provide additional
benefits to customers such as
warranties, credit and after-
sales-services.
Company provides a wide
amount of services under it. It
main service is providing
holiday packages. Firm also
provides leisure services,
credit card, corporate houses
etc. Its products also include
international, domestic and
weekend holidays, it is
provided to people who want
to experience something
different (Dimanche and
Andrades, 2015).
Price TUI's pricing strategy is
competitive based. It keeps the
price according to the
competitors. If competitors
raise its price than firm also
raise its price and vice versa. It
is beneficial for company to
use this pricing strategy as data
is easily available in the
market. It also provides
Its products are available at
reasonable price which help
company in sustaining in the
market and compete well.
Company also provide
discounts and offers according
to the season. Thomas cook
has used premium pricing
strategy to attract customers
(Das and Mukherjee, 2016).
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optional pricing which means
product price is separate and
accessories price is separate.
Sometimes it sell its product at
high price than its competitors
because it provides more
features. Company need to use
penetration strategy and
introduce new products.
Place Company sell its product
through 2 channels i.e. direct
selling to customers and
secondly selling products to
wholesaler and then retailer. Its
product is present over 500
retailers all over the country. It
is beneficial for company
because its product is available
in every part (Pike, 2015). It
has 500 suppliers network who
provides raw materials to the
company. Good relations with
suppliers has benefited
company in innovating its
services.
Thomas cooks is available in
whole world. Its online stores
and physical stores both are
available. Company will soon
expand its business in
Bangalore, Chennai, Kolkata
etc. Organisation has recently
acquired Sterling holidays
resort and holiday lifestyle
company.
Promotion Company uses different
channels for promotions. It
also promote its product
through advertising on radio
and television. Company also
Company advertise its holidays
packages below various
themes such as fusion holiday,
festive holiday, adventure
holidays, cruise special and
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uses social media marketing
which reduce its cost of
marketing and it is beneficial
in gathering huge customer
base. Company also need to
initiate advertisement
campaign where product is
communicated to the
customers by telling features
of the product.
group tours. Firm promotes its
products through
advertisement given in
magazines, newspapers, TV,
internet and you-tube. It
promotes its brand so that it is
visible by conducting big
events (Kotoua, and Ilkan,
2017).
People Company's sales team plays an
important role in marketing.
They give their best to promote
its products. They are given
training and taught new
techniques. These people also
solve the queries of customers
and provide services. They
respect customers and solve
their problems, it give value to
customers so that they are
loyal to the company. These
people are trained to be polite
to customers.
Thomas cook train its
employees so that they are
polite toward customers and
sell its products. Tour guides
are trained so that they manage
people and solve their queries.
Company almost has 3100
stores, 31000 employees and
more. It is also present in 55
Indian cities over 5000
employees.
Process Company ensures that its
products are available in the
stores and retailers keep the
record of the inventory level. It
also has online delivery
process through which orders
There are many process
followed by Thomas cook.
Lead are generated by
marketing the products, when
customer come for enquiry
customization of goods is
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are accepted and product is
shipped (Stanford, 2017). It
also has a process of feedback
collection which is beneficial
for company to improve its
performance.
done. Company take care of all
the visa process,
documentation, exchange of
currency. It is the
responsibility of company that
all the hotel partners, airline
and logistics deliver their best
to customers.
Physical evidence It sell its product in unique
design and colour which
attracts customers. It makes its
product identifiable from other
products (Mahadevan, 2018).
Thomas cook has 32000 hotels
in India and 150000 hotel
outside India. It merchandise
its pen, bags, caps, jackets etc.
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LO 3
P4 Marketing plan
Executive summary: The marketing plan will contain the mission, vision and objective
of the company. It is a blue print of the activities and strategies which is to be performed by the
company. It will further contain the analysis of strength, weakness, opportunity and threats.
Marketing plan is made to get the overview of activities which help organisation to expand its
business.
Mission: To grow the business by delivering high quality products and services which
will increase the loyalty of customers and increase profits.
Vision: To become world's best holiday company, giving pleasure to staff, shareholders
and customers.
Objectives: To increase its sales by 10% till the end of year 2019, enhance customer
experience by 20% and increase company profitability.
Situational analysis: SWOT
Strength: It is one of the oldest travel company in the country. It does customization and it is
very flexible for designing packages for holidays (Vorobjovas‐Pinta and Hardy, 2016). Company
is capable to track records for developing new products that leads to product innovation.
Weakness: It needs more technological investment and also company is not good at forecasting
product demand. Thomas cook need to do its financial planning properly and effectively.
Opportunities: Company has an opportunity to develop its market to gain competitive
advantage. Company need to increase its physical presence so that it covers maximum part of
the country.
Threat: There is a threat of cyber crime which stop customers to do online booking. There is
also a threat of change in the political environment of the business (Pike and Ives, 2018).
Strategy: 7P's
Product: Company will now provide leisure services to the high class customers. It will be
beneficial for company to target the right audience and introduce right product.
Price: Company will now use skimming pricing strategy which will target higher class people.
Company was using penetration pricing strategy to target lower class customers. This new
strategy will help company to provide
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Promotion: Company will now use social media marketing to increase it online presence so that
it can attract large number of customers. It will reduce marketing cost.
Place: Company will open new markets in Bangalore, Chennai, Kolkata etc.
People: Company will now train employees to use new technology which is useful for business
to satisfy their customers by providing services quickly.
Process: Thomas cook will improve its data collection process by using digitalisation to collect
the documents of customers.
Physical evidence: Company will provide special shelves to retailer for promoting their product
so that it is visible to customers.
STP
Segmentation: Company will use demographic strategy to segment the customers by their age,
gender. This will benefit company in designing the packages accordingly.
Targeting: Company will use differentiation targeting strategy which determines that company
creates campaign of 2 target groups. It is a process of creating unique product for each customer
segment.
Positioning: Company can use competitive cost strategy by creating a competitive advantage so
that company can sustain in the market.
Budget :
BASIS EXPENSES
Advertisement expenses £2000
Rent £2000
Salaries £4000
Administration Cost £2000
TOTAL COST £10000
Monitoring and controlling: Company will use budget to check the efficiency of the
plan, to check the progress of marketing plan company can do market research to evaluate the
performance of the company. Company can also observe sales to identify the profitability.
Company can also analyse its cash flow to determine whether it is generating positive inflow or
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negative inflow.
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CONCLUSION
From the above study it can be concluded that marketing essential plays an important role
in expanding and developing the business. There are various function performed by marketing
department such as collecting information from markets, branding, prepare marketing plan,
product design and development and innovation. It is concluded that marketing department plays
a vital role in communicating the products and creating a brand positioning in the mind of the
customers. Report also concludes that marketing department is interrelated with other functional
areas such as finance, HR and product design and development. Company need to use social
media marketing and increase its online presence in the market through which it attracts
customers and reduce cost of marketing . Further it can also be concluded that marketing plan
will need a budget of £10000 to perform all the business activities. It is beneficial for company
to follow the budget given by finance department so it does not go out of money. Plan need to be
completed on time.
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