Marketing Essentials for TUI: Travel and Tourism Strategic Plan

This report presents a comprehensive marketing plan tailored for TUI, a prominent travel operator, focusing on essential strategies to achieve the company's objectives within the competitive travel and tourism sector. The plan includes a detailed company profile outlining TUI's mission, vision, and objectives, followed by a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats. The report further elaborates on segmentation, targeting, and positioning (STP) strategies to effectively reach and engage the target audience. The 7P's of marketing are discussed in detail, encompassing product, price, place, promotion, people, process, and physical evidence, providing a holistic approach to marketing mix management. A promotional strategy is outlined, emphasizing online advertising and various online services to expand TUI's market reach and enhance customer engagement. Finally, the report includes a budget allocation for advertising and employee expenses, offering a financial perspective on the marketing plan. The study concludes that a well-defined marketing plan is crucial for TUI's success, facilitating strategic decision-making and fostering sustainable growth in the dynamic travel and tourism landscape. Desklib provides access to similar solved assignments for students.

Marketing Essentials for Travel and
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
PART 2............................................................................................................................................1
Marketing plan ............................................................................................................................1
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing plan is the document that contains objectives, mission, vision, marketing
strategy and budget that is prepared by manager of the company (Pappas, 2017). Report will
include marketing plan for TUI business that help in achieving objectives of the company.
PART 1
Covered in ppt
PART 2
Marketing plan
Strategic marketing refers to process that helps in implementing new policies and
procedures to business for applying different perspective for business.
COMPANY PROFILE
TUI UK is a travel operator company that provide different services such as travel
insurance, tour package, accommodation etc. to its consumers. It is a subsidiary of TUI group
and was founded by Roy Thomson in 2017. It consists of four travel operators such as Sky tours,
Riviera, Luxitours, Gay tours and airline Britannia Airways.
Objectives
The main objective of the company is to provide benefits to traveller that are having
interest in tourism activities that will be provided by TUI company to its customers and also
providing best experience of travelling to them.
Mission
Its mission is to bring positive tourism impact on people and making differences between
people and places that provide destination around the world.
Vision
Exploring different segments of diversity and gaining experience from foreign countries
and their culture that help in broader thinking in people's mind. They also help in completing
dream of its consumers by offering them different benefits in travel and tourism sector.
SWOT Analysis
This stands for strength, weakness, opportunities and threat and these are internal factors
that affect business operations. These factors can be controlled by the company as they are
internal part of it.
Strength
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The biggest strength of TUI is that it provide low cost and selling products at lower price
so that will be affordable for consumers. It also has good relation with its customers by focusing
on promotion of goods. It has strong financial position that has earned consecutive profits from
last 5 years. As it is having many assets that help at the time of solvency of company. It is
invested heavily for training and development of its employees that help in providing growth of
company in the future. Under TUI company professional teams are working that help in bringing
more opportunity for it. On social media also it has many followers that help in becoming
famous among people in the country (Chang and Chao, 2018). It is also having good IT system
that help in increasing efficiency of its internal and external operations. As this provide quality
product to customers that help in enhancing good value to customer by maintaining quality for
years. It also having different perspective that help in gaining different perspective for the future.
It is having strong relation with its dealers that facilitate TUI in promoting its product and
services in the marketplace.
Weakness
The biggest weakness is it is not spending much in research and development that will
not be able to achieve high growth and opportunities in the market. It is having low current ratio
that will not be able to meet goals of the company. As it is not having many assets as compared
to liabilities so problems occur at the time of liquidity of business. Lack of money in the
company that will lead to less expenditure on running company's operation. As there are local
workers that are working in the company so this may not be lead to diversification of product as
they do not have much knowledge regarding product and services (Conducting a Situation
Analysis: The SWOT Analysis, 2019). Due to presence of competitors its employee turnover is
very high as it is not spending on training and development of it that will not be able to enhance
their skills and knowledge as per working in the company. TUI culture is not good that will
reduce morale of employees to do work in the company. It is not conducting marketing research
so it becomes difficult to take decision for the company.
Opportunities
There is continuous growth of TUI after coming of e-commerce industry. It is earning its
revenue and sales through its online stores. As TUI is having larger share on social media
platform that bring more opportunities in the future (Bao, 2018). Its users are more on Instagram,
Twitter and Facebook that provide greater platform to the company. Development in technology
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help in providing more benefits and reduces operational cost of the company. Inflation rate is
low that is providing more opportunities as this lead to cut cost cost of input that will be helpful
for the future.
Threats
Competitors are the biggest threat for TUI in the marketplace. Changes in technology will
lead to increase in operation cost of the company. Threat of new entrant that gain more market
share as compared to existing companies in the market. Due to changes in exchange rates that
will affect sales of the company at international level. Availability of substitute is increasing that
became threat for TUI.
Segmentation, Targeting and Positioning
Segmentation
This refers to divide market into different segments by taking into consideration needs
and wants of consumers and market is divided according to similar taste and preference of
consumers. As TUI is segmenting market according to consumers that are more interested in
travelling so for them it will provide offers in the future as if they remain their regular
consumers. Generally, it segments by seeing similar preference of consumers that are having
interest in tourism sector (Ladki and Mazeh, 2017). They can segment consumers as those who
are doing business by travelling from one place to another then TUI also attract them for using
its services. It can be done based on demographic, behavioural, psycho-graphic and geographic
segments.
Targeting
After segmenting market it applies different marketing strategies that help in achieving
promotional scheme according to taste and preference of consumers this refers to targeting. It is
the second stage that target consumers that is having interest in purchasing product and services
of this sector. As from group that is made at the time of segmentation TUI is targeting consumers
based on similar interest of consumers that are purchasing product accordingly (Salazar and et.
al., 2016). For example: TUI is providing extra discount to its target consumers that help in
increasing its sales for the future. It also provide luxurious services to its customers with best
offers that is provided to them.
Positioning
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It is the last step in the segmentation, targeting and positioning strategy. After targeting
product is introduced into market and provide an image in minds of consumers with help of
positioning. It is providing perception in consumers minds that are target consumers of market.
TUI is positioning its services by providing the best quality services to consumers.
7P's
Product:- This includes quality of product that is being provided to consumers and help in
satisfying needs and wants of consumers. For example:- TUI believes in providing the best
quality product to its consumers that help in attracting more towards the company. As it is
providing services through social media platform, website and email. As it is providing products
like transport facilities, dining facilities, tour guider etc.
Price:- Through this marketing mix technique price of product help in achieving positioning in
the market. Discounts will be offered to consumers so that will help in attracting more consumers
towards the company (Gardiner and Scott, 2018). For example: TUI is positioning its product
into market by making perception in minds of consumers.
Place:- There are different channels in marketing that is used to introduce product into the
market. These channels helps in attracting more consumers towards company. For example: TUI
is adopting different channels that facilitate in providing many facilities to consumers. This help
in increasing sales of company in the future.
Promotion:- In this different marketing techniques will be used for promoting product into the
market. These strategies may consists of sales promotion, branding, direct marketing etc. For
example:- TUI is using online marketing for promoting its product into marketplace (Martens,
Feldesz and Merten, 2016). This help in gathering more market share as compared to other
strategies in the market.
People:- These are most important element of marketing mix as providing service. These
services are consumed at a point of time and providing greater experiences to them. For
example:TUI is investing in online services as through this it will attract more people and
providing them best experience of travelling. It is an important part of every company that help
in growth and bring more opportunities for the future.
Process:- There are different process that will provide different perception in minds of
consumers. Designing of product is a process that provide different aspects to consumers
(Douglas, Lubbe and van der Merwe, 2017). For example: TUI is involved different people in
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continuing process that help in providing better perspective in the future. As new staff is
appointed into business for managing business operations of the company.
Physical Evidence:- This is the part of material service that will be provided to different
perspective as it is important in identifying physical attributes that is having evidence in present.
For example:- TUI is doing branding of a product that provide different perspective in business
as consumers are aware about availability of product into the market.
Marketing Strategy
Promotional strategy is being followed by TUI company that help in attracting more
consumers towards the company. Through online advertising of product on social media sites
that facilitate different perspective to company. Changes will be made accordingly that enhance
more growth and bring opportunities for the future. Through online strategy TUI can expand its
market at global level that help in utilizing betterment of product in the future. Online services
also provide different segments that will be helpful for the future course of action. This is
important in providing various perspective that will be followed by adopting these strategies as it
facilitate in gaining aspect in company (Zhechev, 2016). As it is selling its product and services
through online medium that facilitate food and accommodation, travel insurance and packaging
tours etc. Through this more people are attracted towards company as they are offering these
services to them. They are indulging in more perspective that provide different segments and
help in utilizing different aspect foe the company. These strategies will help in gaining more
experience and more consumers are attracted towards it. Therefore, promotional strategy help in
gaining opportunities and growth of TUI in the marketplace.
Budget
Advertising Expense
Description Estimated Actual Difference
Television ads £ 1260 £ 1230 £ 30
Brochures £ 1200 £ 1000 £ 200
Pamphlets £ 1500 £ 1200 £ 300
Banner £ 2000 £ 1700 £ 300
Total £ 5960 £ 5130 £ 830
Employee Expense
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Description Estimated Actual Difference
Marketing manager £ 1800 £ 1650 £ 150
Marketing chief £ 1600 £ 1200 £ 400
Coordinator £ 600 £ 780 -£ 180
Sales Executive £ 5600 £ 1000 £ 4600
Total £ 9600 £ 4630 £ 4970
CONCLUSION
From the above study it can be summarised that marketing plan plays a crucial role for
the company. It facilitates in providing different services that help in gaining different
perspective that will be followed in business. There are internal factors that affect business
operations of the company. For introducing new product into market segmentation, targeting and
positioning strategy will be used for enhancement of product into the marketplace. Promotional
strategy is used for marketing of product into the market. Budget is to be prepared for analysing
expenditure that will be made by company at particular point of time.
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REFERENCES
Books and Journals
Bao, H., 2018. Marketing of Tourism Services/Experiences. In The Emerald Handbook of
Entrepreneurship in Tourism, Travel and Hospitality: Skills for Successful Ventures (pp.
261-275). Emerald Publishing Limited.
Chang, W. and Chao, R.F., 2018. The Impact of Shopping Values on Intention of Online Travel
purchase for Mature Consumers: a Mediated Moderation Model. source: Journal of
Tourism and Hospitality Management, June 2018.6(1). pp.92-99.
Douglas, A., Lubbe, B. and van der Merwe, A., 2017. Managing business travellers’ use of
mobile travel applications. In Information and Communication Technologies in Tourism
2017 (pp. 271-283). Springer, Cham.
Gardiner, S. and Scott, N., 2018. Destination Innovation Matrix: A framework for new tourism
experience and market development. Journal of Destination Marketing &
Management. 10. pp.122-131.
Ladki, S.M. and Mazeh, R.A., 2017. Comparative Pricing Analysis of Mecca’s Religious
Tourism. International Journal of Religious Tourism and Pilgrimage.5(1). p.4.
Martens, H.M., Feldesz, K. and Merten, P., 2016. Crisis Management in Tourism: A Literature
Based Approach on the Proactive Prediction of Crisis and the Implementation of
Prevention Measures. Athens Journal of Tourism.3(2). pp.89-101.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications.23(2).pp.195-218.
Salazar, J. and et. al., 2016. Online Travel Retail Site Usage And Generational Differences
When Using Sites To Plan A Leisure Vacation. European Scientific Journal.
Zhechev, V., 2016. Integrated marketing communications of hotel chains. The Routledge
Handbook of Hotel Chain Management, p.274.
Online
Conducting a Situation Analysis: The SWOT Analysis.2019. [Online]. Available through :
<https://www.zoho.com/academy/marketing/market-research/conducting-a-swot-analysis.html>.
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