TUI Group: Sales Development, Merchandising, and Customer Behavior

This report provides a detailed analysis of sales development and merchandising strategies, focusing on the TUI Group, a multinational tour and tourism company. The report begins by defining buyer behavior and exploring psychological and personal factors influencing customer decisions, such as perception, marketing campaigns, economic conditions, and cultural influences. It then evaluates the effectiveness of internal merchandising materials (packaging, presentation, interior design, sales materials, and quality) and external merchandising materials (competitors, social factors, and alternatives), offering recommendations for improvement. The report also examines the most effective advertising media, including radio and online advertising, to maximize sales for adventure tours and hotel accommodation services, along with their pros and cons, including cross-promotion strategies. Finally, the report addresses the influence of design, layout, and operational functioning on sales revenue, emphasizing the importance of attractive and creative design in attracting and retaining customers. The report suggests strategies for enhancing TUI's marketing efforts and improving customer engagement.

Sales Development
Merchandising

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. Define Buyer behaviour and discuss two factors that influence customer behaviour in that
organisation............................................................................................................................1
B. Internal merchandising material and evaluation of their effectiveness and recommendation.
................................................................................................................................................1
C. External Merchandising and their influence the Customer Turnmover............................2
TASK 2............................................................................................................................................3
1. Most advertising media for the product to maximise sales. ..............................................3
TASK 3............................................................................................................................................4
B Measure the Personal selling techniques............................................................................6
C. Propose Sales training programme and key principles......................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
Sales Development Merchandising is the activity to promote the goods and services.
Merchandising includes the quality, prices, design, layout, Which gives more sales revenue to
the company. Present report is based on TUI group which is multinational company of Tour and
tourism in Germany. It will explain about the sales techniques and their principles. Apart from
that it will cover internal or external Merchandising materiel.
TASK 1
A. Define Buyer behaviour and discuss two factors that influence customer behaviour in that
organisation.
Consumer is the king of the market. He is the person who enhance the sales revenue of
the company. Buyers process is the systematic approach, They identifying the services and their
features and then decide to purchase. Buyer behaviour is the systematic study of an individual or
group of customers or identifying the goods and services. Consumer buying behaviour depends
on the decision-making process during the purchasing. There are two factors which influence
customers(Adrian, Phelps and Totten, 2017).
Consumer Behaviour-
Psychological Factors: This factor will affect the consumer behaviour strongly such as:
 Perception: It is an detecting the world and the circumstances around and after that
taking a choice in like manner. Each individual look as the world and the circumstances
in an unexpected way. The judging capacity and limit of each individual is extraordinary
and consequently the take a gander at the world in an unexpected way. This is the thing
that isolates the choice taking capacities.
 Marketing Campaign: Advertising is the key factor which influence customers’ buying
behaviour made by them. Marketing promotional activities should remain going
continuously, so that consumer get attracted from this advertisement and get connected
with the company. TUI which is a multinational travel and tourism company in Germany
is taken under consideration for this report. It has to promote their services on regular
basis to attract customers. In addition, attractive marketing campaign influence customers
to purchase the services. Furthermore, marketing activities is the mediator between
customer and company.
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Consumer behaviour- Personal factors: This are the factor which can be influence to the
consume behaviour which can be describe such as follows:
 Economic Condition: Consumer spending power is the most effective factor. A positive
economic environment influence customers to purchase more otherwise not. It makes
consumer positive and confident to indulge in purchases. In case of crises may, it effects
TUI sales badly (Armstrong, Kotler, Harker and Brennan, 2015). On the off chance that
the economic circumstance of a customer isn't great or stable it will influence his buy
control, truth be told if the shoppers or the economy of a country is enduring a misfortune
it resistant influences the buyers buy or spending choices.
Cultural and value factors: It is the most influence factors which affects the consumer in
different ways. It is the factor which influence in the organisation due to which demand of the
products has changes accordingly.
B. Internal merchandising material and evaluation of their effectiveness and recommendation.
Company name: TUI
INTERNAL MERCHANDISING MATERIALS
LIST
EVALUATION &
Recommendations
Packaging Packaging of TUI must be
attractive and innovative which
attract customers towards them
Presentation Presentation is the tool which
explains the company. It is very
important to aware customers
about the company.
Interior Design It is the tool which shows
company level. TUI needs to
make their interior attractive
which gives more sales
revenue.
Sales Material Sales material should be
customer oriented which helps
TUI to get more clients.
Quality Quality is the essential tool to
enhance the sales of the
company which will help to set
an goodwill and attract more
customer towards the firm.
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For the organisation it is
important to improve the quality
of the goods and service with
the better operation and
management.
C. External Merchandising and their influence the Customer Turnover.
Company name: TUI
EXTERNAL MERCHANDISING MATERIALS LIST Influence on customer
turnover &
Recommendations
Competitors Competitors may harm
the company to produce
different offers and
services to attract the
clients, TUI needs to be
aware and gives new
services frequently to
retain the existing clients.
Recommendation for the
taking competitive
advantages is necessary
to convert firms
weakness into the
strength.
Social Social factors depend
upon the individual
choice which influenced
by the price, quality or
individual perception, so
TUI should give services
at reasonable price.
Recommendation for this
is that social factors is
affected to the company
behaviour for that they
need to adopt corrective
action plan.
Alternatives Alternatives also
influence customers
towards another services,
so to overcome from this
issue. TUI needs to give
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better packages
according to the customer
needs.
TASK 2
1. Most advertising media for the product to maximise sales.
Product 1. Adventure tour of TUI
Media suggestion: Radio Advertising
TUI is the largest tourism company. They make attractive and exciting tours for their
clients. It makes adventurous tour for youth as young individuals love to go around the world
and visit some most exciting places(Berthon, Pitt and Watson, 2015). TUI gives special offers
to the people and for that, they need to adopt some attractive advertising media to promote their
product. TUI adopt Radio Advertising to make aware the youth about their new package. Radio
Advertising is the most effective media to attract clients. Promotion through radio has been the
most effective tool because youth love to listen radio and hear many advertisements on it. On the
other side, it is also cost effective to the company. It is less expensive and most effective tool of
marketing activities. Moreover, it is powerful medium to give information across the world on
the other side, company may reap maximum sales revenue through radio advertisement. It is a
cheap and quick way to get customer attraction.
For example with the helps of radio advertisements company can easily pass their voice
to many populations. Along with that, this is the best manner to promote the TUI services. Radio
promotion plan is the very much effective and promoting.
Product 2 Hotel Accommodation services
Media suggestion: Online Advertising
Online advertising is the most effective tool of marketing activities. It makes product
more reliable and long-lasting. Large number of population use online searching for everything.
Online platform is most competitive and hard-hitting tool. TUI may use online platform to
promote their hotels and luxurious services(Katz, 2016). They use social media platform like
Facebook, twitter, YouTube, Instagram and many other social sites which gives lots of customer
attraction. For instance, online advertising helps in reaching the customer by Facebook which is
the most crowded site visited by millions of people. TUI uses this online tool to promote their
hotel services. Here, it makes available all service offers and attractive templates through which
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customers get fascinated. On the other side, short clips of hotel infrastructure, design and their
layout should be uploaded so that clients get attracted from those videos. It makes advertisement
appealing and graceful. These online marketing tools help organisation to form more sales
revenue. Adding to that, organisations also make their websites creative and fascinating to attract
customer force.
Pros and cons of (Radio Advertising)
Pros:
 It helps to target maximum audience. Different radio stations have their own styles to
promote company’s advertisements which helps in luring customers in large numbers.
TUI needs to create advertisement on the basis of customers like families, teenagers etc.
as it aids to get more sales.
 It gives less expense to the company and more customer reach.
 Radio ad is very fast and quick as compared to television ads.
Cons:
 Company needs to give ads frequently otherwise; less number of repetition may fall the
customer attraction.
Pros and cons of Online Advertising
Pros:
 Cost effective as compared to other promotional tools and higher customer pool.]
 It helps company to track the record of customers towards the organisation.
 Instant gratification of clients and easy booking through online.
Cons:
 Online advertising contains high competition and choices from which sometimes
company get confused. On the other side, online advertising sometimes is not safe and
secure.
Online advertising is the best promotional plans which helps to influence the goods and
services of the company profit for example. TUI adopts social media platform to enhance the
awareness of the TUI services.
Cross promotion: It involves the association of a joint activity to empower deals made by a few
organizations. With regards to web based business, this strategy identifies with the advancement
of a brand or an item on the accomplice side.
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To make a cross-advancement powerful, organizations should:
 have a typical target group of onlookers;
 work in a similar value fragment;
 not contend with each other;
 have a similar enthusiasm for dynamic deals.
One of the cases of cross-advancements is a joint publicizing of the Visa and MasterCard
organizations of charge, credit, and reward cards.
What are the significant advantages this strategy conveys to organizations?
Pros
 The Opportunity to Cut Costs: As per this strategy, organizations advance items or
administrations by joining their publicizing spending plans. In this way, they can spare in
any event around half of the cash.
 Extending Customer Base Cross-advancement enables organizations to twofold the
quantity of potential purchasers, as for this situation, accomplices prescribe each other to
their clients.
 Quickened Market Penetration Cross-advancement is a perfect alternative for new
businesses, as the collaboration with understood firms encourages them to win the trust of
clients.
With the advantages of this technique, come its expenses.
Cons
Cross-advancement Can Be not Equally Beneficial: Cross-advancement may infer an
organization on commonly useful terms or it may not. Truth be told, utilizing this technique may
well imply that you are excessively centred around advancing another person's items while
dismissing your own advantages. Thus, recollect forget that cross-advancement ought to bring
advantages to the two gatherings and plan your limited time exercises appropriately.
TASK 3
A. Design, layout and operational functioning influence the sales revenue.
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Design is the feature which gives company’s first image to the customers. Good design
gives more attraction of buyers(Keiser, Garner and Vandermar, 2017). It makes services more
productive and creative. TUI needs to use attractive strategies for making its infrastructure,
advertisement and product design. It helps to make more customer attraction towards the
company. It also helps to retain the clients for long time. It is a streamlined process which
increases the sales revenue of TUI company. Adding to that, design is an essential feature to
develop new services and products in the market. TUI needs to use digital concepts to make their
designs more graceful. TUI is the tourism company which needs to make changes constantly in
designs. Moreover, if design is not up to the mark, customer will not make interest to purchase
the product and services. On the other side, company layout describes company to the client
when they are using those services. Layout means in which company contain their plans,
services, management plans. TUI needs to make systematic plans and ideas to enhance the sales
revenue otherwise, company may fall their sales due to having lack of systematic plans. TUI
needs to maintain their development plans more effectively to make their layout systematically.
Organisation layout describes the company image and their effective function. If their plans are
not very much effective, client will not want to come again(Lanz and Carmichael, 2015). This
happens fall the sales revenue of the organisation. On the other side operational functions. It is
the most important part in the company which manage the day to day activities properly. TUI is
the tour and tourism company which needs a proper planning and implementation. It involves
employees contribution, Operational functioning of the organisation has to be good and effective
otherwise clients not get satisfied with the company. Like in TUI, it is the responsibility of tour
operator to manage the customer needs and wants according to their choice. Otherwise, negative
impact on clients may decrease the sales revenue of the company.
Operational functioning is the internal functions which is done by the employees.
It is necessary to implement the activities in proper way, so that company helps to achieve the
high revenue. Operational activities also helps to enhance the company image in the market. On
the other side ineffective operations may increase the cost of the company. Which is not good for
the sales revenue. Low operational functions may decrease the quality of services which affects
the overall sales(Ramsay Wagner and Kelly, 2013). To attract the customers' attraction TUI
needs to maintain the operational functions. For that they need to motivate their employees for
better performance and try to give more dedication power towards the company growth. Overall
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activities are depended on the operational departments which helps to measure the sales revenue.
In hospitality industry there are high competition is involved which create pressure on the
companies. TUI needs to adopt new business plans and ideas so that they maintain their
operational activities properly and better from others. High competition level increase the
pressure among the employees so that it affects the performance of the company.
Positive factors:
 Attractive layout and designs of the TUI helps to attract more customer pool.
 Company layout and design helps to enhance the clients' faith and trust which helps to
maintain the long-term relation(Solomon, Russell-Bennett and Previte, 2013).
 Effective design and layout of the company helps to enhance the organisation image in
the market.
 Effective operational functions increases the effective working which helps to enhance
the sales revenue. Hard working employees make operations smoothly and increase the
quality of working. This increases the sales revenue.
Negative Factors:
 Less impressive designs and operational functions give less number of customers.
 It affects the performance level of the company which decreases the customers'
satisfaction.
 Due to lack of coordination operational activities will not go smoothly and
systematically. This affects the sales revenue badly.
B Measure the Personal selling techniques
Personal selling techniques are the most effective tool of marketing behaviour. These
techniques connect the customer directly to the company. It involves face to face selling or many
more(Witt and Rao, 2015). These techniques help customer to understand better to the company.
It helps customers to get more comfortable with the company. In this personal selling it gives
chance to the salesperson to use his personal skills and talent to attract the customers' attraction
and faith. It also helps to analyse the Client needs and wants, so that TUI can easily give services
accordingly. In these techniques it also gives chance to the customer to ask anything to the sales
person directly. On the other side it is the responsibility of sales person to addresses all the
query of the clients. There are some personal selling techniques which helps TUI to attract client
attention given below:
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 Discount techniques: It is the most effective personal selling techniques to attract the
clients towards the company. It provides flexibility in prices that salesperson can offer to
the customers. TUI adopts this personal selling technique to enhance the sales revenue of
the company.
 Improving customer and market feedback: It is the most effective personal selling when
sales person adopt feedback strategies by which they take feedback from their current
clients(Personal Selling Strategies.2017). It helps company to launch new services on the
basis of current needs and wants.
 Customer relationship: Maintaining the relationship with the customers may increase the
customer faith and trust towards the company. Personal selling technique focus on their
customers satisfaction which comes from the better services. TUI adopts these techniques
to enhance their sales revenue. It helps company to make new product and plans, Which
creates more competition in the market. TUI needs to adopt these selling techniques to
measure the more customer accounts(Zhurkina, Ukhanova and Nikishin, 2015).
 Targeted to different types of customers: TUI needs to identify their target group persons
to increase their personal selling. This technique of personal selling helps to reach the
customer directly.
C. Propose Sales training programme and key principles.
Sales training programme is the process in which company give training to salesperson
who directly approach the customers and full fill their needs and wants. It is an action which
create long term sales performance that can be seen in salesperson. There are some selling
principles given below:
 Attention: TUI needs to adopt this principle to maintain their image in the market. This
principle explains that salesperson needs to attentive towards the customer requirement.
 Desire: Desire is the element for which customer get the services. TUI salesperson needs
to full fill the desire of the customer(Armstrong, Kotler, Harker, and Brennan, 2015).
CONCLUSION
From the above report it concludes the sales development merchandising. It also
concludes internal and external merchandising material list. Apart from this the selling
promotional activities which is important to enhance the sales of TUI company. TUI needs to
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adopt personal selling techniques to increase the trust and faith among customers by adopting
Selling principles.
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