Marketing Analysis: TUI AG, Segmentation, Strategies, and Positioning

This report provides a detailed analysis of TUI AG's marketing strategies within the travel and tourism sector. It begins with an introduction to TUI AG, a leading multinational travel and tourism company, and its market segmentation approach, including demographic, psychographic, behavioral, and geographic segmentation. The report then examines the marketing mix elements, particularly focusing on how TUI utilizes various marketing strategies such as social media, video tutorials, SEO, and Facebook ads to target its diverse customer base. Furthermore, it delves into TUI's positioning strategies, including cost positioning, quality, flexible positioning, and product-specific approaches, highlighting how TUI differentiates itself in the competitive market. The report concludes with a summary of the key findings, emphasizing how TUI's segmentation and marketing strategies contribute to its success in the travel and tourism industry.

Marketing in travel
and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
Different types of segment regarding travel and tourism............................................................1
Types of Marketing strategies in tourism sector..........................................................................2
Types of positioning strategies....................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
TUI AG is known as the Anglo -German multinational travel as well as tourism firm.
It's headquartered is in Hannover, Germany. It is considered as the largest travel as well as
tourism firm within World (Park, Seunghyun 2016). Firms owns hotels, travel agencies, retail
stores, cruise ships. TUI operates 380 hotels as well as 16 cruise ships all over the world by
ownership.
Different types of segment regarding travel and tourism
Philip Kotler “the father of marketing” stated that marketing mix are the variables
which is used by organisation to influence behaviour of customers. In this there are 4 P’s that
is used price, promotion, place and product.
Market segmentation is considered as the process regarding to divide the target market into
the smaller as well as more defined categories (Park, Seunghyun 2016). It segments
audiences and consumers into the group that can share characteristics that are similar such as
interests, location or needs.
Basically, there are four types of market segmentation are mention below
Demographic segmentation
Psychographic segmentation
Behavioural segmentation
Geographic segmentation
Demographic segmentation- It is considered as one of the most common as well as popular
types of market segmentation. It focuses on statistical data regarding a group of individuals.
Examples of the Demographic market segmentation such as
Age, income, gender ,family situation, education, Annual income, Family situation, location,
Ethnicity (Harahsheh, Haddad and Alshorman, 2019). If focuses on the example B2C
demographic segmentation must be a vehicle manufacture that can able to sells a car as firm
must likely target the audiences that have the higher income. While the another examples
such as brands that can able to sells an company platform regarding marketing (Jacobson,
2019). It can target the managers (marketing) within at larger firm such as 500 + employees
that have the capacity to make buying decisions regarding for their teams.
Psychographic segmentation- It categories consumers as well as audiences through factors
that are related to their characteristics as well as personalities. Such as values, attitudes,
interest, lifestyle, Personality traits and priorities and many more. These segmentation
focuses on the factors that are more difficulty to recognises as they are consider as subjective

as they are not considered as data focused as well as needs research to understand and
uncover (Park, Seunghyun 2016). Such as Luxury brand might choose to focuses on the
consumers that values status and quality.
Behavioural market segmentation
As psychographic and demographic segmentation both focuses on who are the clients, here
behavioural focuses on how the clients acts (Camilleri, Camilleri and Acocella, 2018). Such
as Spending habits, brand interactions, User status, Buying habits and many more.
Behavioural segmentation needed to know about the actions of consumers. These are the
actions that are related that how the consumers communicate with another brand (Kingsnorth,
2019). Here if focuses on the B2B with this segment might be luxury car brand that can
choose to target the consumers that can buy a high-end vehicles within the past of few years.
Geographic segmentation- It is considered as the simplest type of the segmentation that can
be categorized consumers based on the borders of geographic. Examples of Market
segmentation are City, ZIP code, Climate, Nations, Radius around a specified location, Urban
or rural. These are the segmentation can focus on the geographic boundary for example ZIP
as well as type of area such as size as well as type of climate. Such as these of geographic
segmentation may be luxury car firm as they can choose to target consumers that live within
warm climates that require to be equipped for weather such as snowy (Park, Seunghyun
2016). The marketing platform focuses their efforts of marketing around city, urban centres
that might target consumers to work.
TUI have segmented their customers on basis of demographic segmentation. Here,
they are providing various services to people on basis of age, income, gender, etc. and offer
types of services. TUI provide quality and valued service to their differentiated segmented
customers.
They have segmented their customers on the basis of their income. They do provide valued
and quality service to their customers but provision of the services completely depends upon
the income level of customers, i.e. lower level income always prefers lower cost services so
they are provided with limited number of quality service as per their defined level. They also
provide them with various kinds of coupons and discount so that it fits within their budget.
Types of Marketing strategies in tourism sector
The target market strategies adopted by TUI is described below:
Social media
In today's world there is impossible to ignore of social media. They could hire to a social
media manager that have money to burn and also post the products on the platform of the

social media. By posting anything finds the relevant as well as useful information that aids
audience to know more about the business. TUI uses various platforms such as Snapchat,
Instagram or twitter to reach out the businesses or even interact with the consumers that
might be looking for services and products (Deepak and Jeyakumar, 2019). It is considered as
very powerful marketing. It will also help to attract their lower income customers they can
provide various kinds of offers or discounts to them.
Video Tutorials
TUI also used video tutorial. They shoot videos and for this they use You tube is
considered as the second largest search engine within the world after the google (Park,
Seunghyun 2016). If someone wants to learn something quickly as well as visually it is the
best way to learn something. Also, nowadays Facebook also post various video that are
associated with different topics. Instagram uses its IGTV for posting videos that are
associated with Travel and tourism videos and so many other content related videos. This will
help them to attract higher income customers and they can showcase their quality of services
that they provide to their customers.
SEO
TUI also uses SEO as target market strategy. It is considered as an area regarding marketing
that anyone can be passionate about. It is also focuses that various people are deathly
frightened by this area (Vellas, 2016) . Off course SEO might be freighting as it can be
known as the powerful as well as tries to learn to leverage it. People can take shortcuts with
individuals.
Facebook ads
TUI promote ads on their official page on Facebook. It is considered as one of the
most powerful methods that can be used for marketing such as ads of the Facebook. By the
help of the Facebook they can reach the particular people and can do it very easily
(Tussyadiah, Wang and Jia, 2016). They can target by relationship status, Interest age,
geographic location, interest, age and many more. But also, here the trick is to get the better
outcomes that cannot be just click about the click traffic but also focus on the re-targeting and
conversation by pixels. Pixels on Facebook can easily track anyone who comes to your site as
it able to build custom audiences that are around them.
TUI uses various types of marketing strategies such as social media platform to attract
their customers. Here, they have created an official page where all services info is available
to customers.

Types of positioning strategies
There are various positioning strategies such as
By using costumer benefits or product characteristics
It focuses on various characteristics regarding customer or product benefits. Such as some of
the motorbikes rely on the fuel economy as some of the looks, power as well as other stress
focuses on its durability.
Cost positioning strategy
TUI is known for its customer services as it is considered as focuses on the cost
positioning strategy as it focuses on ways by which any wasteful procedures in firm can be
eliminated as well as pass such type of the saving on their consumers. TUI invested its large
amount of money within the operational process as they are inventory, delivery as well as
ordering procedures (Sharma, Sharma and Chaudhary, 2020). Thus, the entire cost structure
examined as it is a cost saving firm so offer lower prices of travelling in air or other can be
offered to their consumers.
Quality
Most of the firms destroy their credibility within marketplace through alienating suppliers
and consumers (Reino and Hay, 2016). Some of the firms chooses to focus on quality
positioning strategy by using various exceptional parts as well as materials to the minimum
defects.
Flexible positioning strategy
It also focuses on various firms that can change the products as well as services rely on their
requirements. Every change focuses on the increase within the cost of production as it is
considered as the ability regarding manufacturing to respond to create a competition of new
level. Here flexible positioning also consider as another way for the firms that able to
differentiate themselves from their rivalries to produce a large variety regarding products as
well as modify products as well as introduce new products that can be responded the needs of
the consumers immediately (Harahsheh, Haddad and Alshorman, 2019). Various firms are
also focuses on the new technology to gives flexibility regarding their products.
Problem solver- Most of the brand focuses on various positioning their products as it is
considered as the one stop solution regarding particular problem (Gretzel, 2017). They
focuses on various pain areas as well as challenges that can faces by consumers within
communication as well as other strategies of marketing that can promote their goods.
Parent Brand

It is a strategy that focuses on establishing a brand promise and also the reputation regarding
the parent brand. As here all the products as well as sub brands are falls under the parent
brand.
Product specific
There are some of the brands that focuses to cater to various market segments that uses the
strategies regarding to the product- specific that can differ their positioning than others.
Feature specific
Here the competition is huge as well as products are same through focusing on the particular
features that depends on the sold product (Camilleri, Camilleri and Acocella, 2018).
TUI uses cost positioning strategy to position their products and services in the
market. this allows them to charge for the services which is offered to customers. Moreover,
on basis of cost of services TUI position themselves in the market.
CONCLUSION
From the above it had been concluded that Market segmentation such as Demographic
segmentation focuses on statistical data Age, income, gender. Psychographic segmentation
related to their characteristic’s values, attitudes, interest, behavioural focuses on how the
clients acts. It also focused on Marketing strategies such as Usestr of social media, Create
video Tutorials and uses Facebook ads with re-targeting and Understanding search Engine
optimization Positioning strategies such as Cost positioning strategy Flexible positioning
strategy, Parent Brand Product specific.

REFERENCES
Books and journals
Camilleri, M., Camilleri, M.A. and Acocella, 2018. Travel marketing, tourism economics and
the airline product. Springer International Publishing.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Gretzel, U., 2017. Influencer marketing in travel and tourism. In Advances in Social Media
for Travel, Tourism and Hospitality (pp. 147-156). Routledge.
Harahsheh, S., Haddad, R. and Alshorman, M., 2019. Implications of marketing Jordan as a
Halal tourism destination. Journal of Islamic Marketing.
Jacobson, M., 2019. Marketing madness: A survival guide for a consumer society. Routledge.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Park, Seunghyun “Brian, Chihyung “Michael Ok, and Bongsug “Kevin Chae. "Using Twitter
data for cruise tourism marketing and research." Journal of Travel & Tourism
Marketing 33, no. 6 (2016): 885-898.
Reino, D. and Hay, B., 2016. The use of YouTube as a tourism marketing tool.
Sharma, A., Sharma, S. and Chaudhary, M., 2020. Are small travel agencies ready for digital
marketing? Views of travel agency managers. Tourism Management, 79, p.104078.
Tussyadiah, I., Wang, D. and Jia, C.H., 2016. Exploring the persuasive power of virtual
reality imagery for destination marketing.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.