TUI Marketing Essentials: Marketing Plan for Tour and Tourism Org

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This report provides a comprehensive analysis of marketing essentials for TUI, a major player in the travel and tourism industry. It begins by highlighting the significance of marketing and its interrelation with other departments within an organization. The report then focuses on the application of the marketing mix (product, pricing, promotion, place, people, process, and physical evidence) by both TUI and its competitor, Thomas Cook, to achieve their respective marketing objectives. A detailed comparison of how each company utilizes these elements is presented, emphasizing the importance of adapting strategies to maintain competitiveness. Furthermore, the report outlines a basic marketing plan for TUI, including a SWOT analysis, SMART objectives, and marketing mix strategies aimed at launching new products, such as artificial intelligence integration, and improving overall business performance. The plan underscores the need for innovation, customer satisfaction, and strategic adaptation to ensure TUI's continued success in the dynamic travel and tourism market.
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Marketing Essentials
For Travel and
Tourism
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................3
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives...................................................3
P4. Produce a basic marketing plan for a tour and tourism organisation to meet marketing
objectives................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is the primary function for all organisation in modern era. This involves
understanding the customers preferences, customers demand, building relations with public,
customer driven marketing strategy. This report is based on the study of the organisation TUI
which is one of the largest tour operator company which also operates its business in the field of
hospitality. This report is about focusing on the significance of marketing in business
organisation. It shows the role of marketing at first and their inter-relatedness with other
functional departments of the firm. At last, it focuses on the different application of marketing
mix which has been used in the company to achieve the organisational goals and objectives.
Also, this report helps in processing and evaluating the ground of different marketing plan for
TUI retail.
PART 1
Covered in PPT
PART 2
P3 Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives
Marketing mix is one of the most popular marketing framework which is used by the
organisations to evaluate the business activities(Gardiner, Grace and King, 2014). With the help
of this term an organisation can identifying products, market, and the customers needs and after
this they can produce all the products according to the market situation which helps them to
satisfied their customers and achieve their targets and goals. These terms help the TUI to
recognise their organisational activities that they are going on a track of not. These seven terms
are described below:-
Product: This term refers to the that product which is selling by the company. In this
term, an organisation able to know that the products which they are selling is able to meet
the expectations from their customers or not and the products have the capacity to
satisfied the need of its customers not(Kastenholz, Carneiro and Marques, 2012).
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Pricing: In this term, it is defined the price strategy which is adopted by the company for
its products and services of the company. With the help of this strategy Company can
know that their price strategy is effective or not. For attracting a large number of
customers company needs to considering the discounts scheme and seasonal pricing.
Promotion: It defines the promotional activities which are followed by the company to
aware its customers.
Place: It is the most important part which is related to the location of the business. A
company needs to select that location for their business where customers can easily reach.
People: It is related to the staff, employees, consultants who are working in the
organisation. They all are responsible for providing the services to customers. So the
company needs recruit right people, provide training and development program so they
can enhance their skills.
Process: It refers to that processes which are adopt by the company to deliver the
products and services.
Physical evidence: It include all the business activities like physical environment,
products packaging, branding, well-trained staff, and many others. These are the elements
that represents the company value, an effective physical evidence of every element can
attract a range of customers(Blythe and Martin, 2019).
Compare the ways in which different organisations apply the marketing mix:-
There are defined below about the marketing mix of the TUI and their rivals Thomas
cook that how these strategies are help them to achieve their marketing goals and objectives:-
Elements of marketing mix Thomas cook TUI
Product Thomas Cook is related to the
travel agency, their products
are related to the resort and
hotel packages, airline
packages etc(Suhartanto,
2018).
TUI is related to the travel and
tourism industry so the
products for them are related
to the hotel and resort
packages, food packages, and
the airline packages.
Pricing Thomas cook provide
packages at reasonable price to
For attracting a large number
of customers TUI adopt that
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their customers which help
them stay relevant and be
competitive.
price strategy which is
favourable in the both
customers and the competitive
market. They are adopted
unique price strategy by which
they able to cover a great
market share. TUI provide
better services at low prices
than their competitors and give
better discount and low price
offers.
Promotion For attracting a large number
of customers Thomas cook
adopt various promotional
activities like they are
displaying their holiday
packages in many themes like
festive holidays, adventure
holiday and etc. They are also
give advertisement in
magazines, newspaper, TV,
and many others(Matikiti,
Kruger and Saayman, 2016).
For succeeding in the market
they are adopting various
promotional activities like
sweepstakes, rebates,
exhibitions, social networks,
cinema and many others. They
are also adopting public
relation method like they are
organising conferences,
meetings, press releases which
helps them to build a higher
position in the market.
Place The outlets of Thomas cook
are situated in all over the
world in the physical and
online outlets. But in today
world people need face to face
interaction so company need to
focus on the establishment of
TUI is established their brand
value in all over the world.
They have covered a vast area
of the UK and also they are
working from the all over the
world. Their outlets are
situated in various countries
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the new branches in world
wide(Eletxigerra, Barrutia and
Echebarria, 2018).
from where every customer
can take advantage of their
services.
People Thomas cook is focused on
their customers as well as their
staff members. They are
employ those employee who
are well trained so they able to
provide their customers a
better satisfaction during their
tour.
The employees and the staff of
the TUI are quite skilled and
completely trained, their main
purpose is providing the best
services to their customers
from all over the world.
Process There are various process
which is followed by the
Thomas cook to sustain in the
market. For providing a better
tour experience to its
customers they are doing all
the process which are related
to their tour like
documentation, visa process,
and currency exchange etc.
They are adopt various process
like they provide an effective
training for enhancing their
employees capabilities.
Moreover, they use high speed
internet service for providing
fast and best services to its
customers.
Physical evidence They has almost 32000 hotel
in India and around 150000
hotel outside India which
represent a great physical
evidence of them. Moreover,
they also have a their own app
for attracting international
travellers and at their
established various outlets
They have a great appearance
in the all over the world from
there they are serving its
customers(Halpern, 2016). It is
a largest tour and travel
company, it covered a great
physical appearance in all over
the world.
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where their customers can
interact with them(Nedelea,
Ali and Alamgir, 2017).
Thus, TUI needs to update all these strategies so they can beat their competitors and can
easily achieve their goals and objectives.
P4. Produce a basic marketing plan for a tour and tourism organisation to meet marketing
objectives.
Marketing plan is the blueprint for the execution of marketing activities in the business. It
is an operational document which outlines the marketing strategies and tactics that the company
is going to implement in near future. Business organisations adopt this advertising strategy while
launching the new products in the market. Company like TUI retail sector must focus on
developing the marketing plan as it will allow them to identify marketing strategy, current
market position of the company, avoiding future uncertainties and ensure the success of new
products or services provided by the company to their potential customer so that customer get
full satisfaction.
Overview of TUI :- TUI retail is the worlds leading tourism group. It is well know for
providing the best quality of products and services to their customers. TUI is serving 5.5 million
customer with the help of their employees. The company is now planning to launch a new
product that is artificial intelligence in the business so that the quality of products and services
can be improve and can compete with their competitors.
Swot analysis :
SWOT analysis is a tool of strategic planning which helps the organisation in evaluating
their strength and weaknesses and would also enable them to identify the opportunities and
threats that are available to them from their competitors(Dwivedi, Kapoor and Chen, 2015).
Strength Weakness
TUI is the organisation which is highly
innovative and provides differentiated
products, brands and services.
There is a lack of lost cost brands and
faces a high level of competition
globally.
Opportunity Threats
TUI have the opportunity to increase Rapid changes in the legislation of the
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their innovations in technology and can
established their business in those areas
where there is a huge requirement of
hospitality services(Pike, 2015).
government is a threat to the business
of TUI.
Objectives :
To attain a position of profitability organisation must focus on setting SMART objectives
to launch new products and services these are -
Specific- In this the company tends to increase its market share from 60% to 80% by
launching new products and services.
Measurable- Company seeks to measure the size , purchasing power , segments to
achieve the standard.
Attainable : The company has decided to hire skilled persons to achieve the target within
a short span of time .
Relevance : To increase the profitability of the firm from 70% to 90% within 6 months.
Time bound : It has estimated the time period for the success of artificial intelligence
within 8 month.
Marketing Mix:
TUI uses the tool of marketing mix to increase their product portfolio, for new product
development, to become dynamic and to improve the performance of business in comparison to
their competitors.
Product – The success of TUI hospitality is dependent on how well the product of the
company satisfies the needs of its customer and can cover the larger section of the market.
Price – Here the company may focus on charging high prices and provides customers
with luxurious products and services that satisfies the needs of customers(Law, 2012).
Place : TUI uses world most powerful , effective and efficient distribution channels
which has made a trust of customer in their brand. The internet is one of the best sources which
provides with TUI menu , location , product and services on internet(Khuong and Huong, 2016).
Promotion : For promoting its products and services the company uses online
marketing , however some businesses still use the old traditional prints and mass media. TUI
started a new champaign targeted at young travellers whom the rival has failed to attract .
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PEST analysis :
There are certain factors within the TUI that would affect the working of company these
factors are as follows-
Political factor – These involves government rules and policies , reduction in the VAT
rate will be beneficial for the company like TUI to survive in UK economy.
Economical factor- Rise in the general price level would affect the TUI business and
will increase the cost of production.
Social factors-It includes customers belief, attitude , behaviour . Though a customer
always seek to have a better experience at tour and tourism there must be a peace in the
environment and should provide facilities according to the requirement of customers.
Technological factors- TUI is using cutting edge technology that have significant
impacted on all the operation of the business. The concept of partnering with you tube , snap chat
to create content that does not only allow the brands to capture consumer mind but also enhance
the technology driven business.
Strategies for business:
Segmentation- To launch artificial intelligence, TUI will consider the segment where
people are more literate and are aware of using new technology that the company is going to
install in their business.
Targeting- TUI would target those countries and people where people are more
conscious about using new technology and luxury living to launch their new product.
Positioning- When a company want to attain a position for its product and services, they
must find out the divergent customer value preposition that will give company a competitive
edge effectively build a position(Zhang, Cheung and Law, 2018).
Implementation plan for promotional launch :
Every organisations use different different promotional activities which influences the buying
behaviour of its targeted customers. TUI uses different tools for promoting their products and
services with the help of social media platform and camping which involves less time and
money(Dinçer and Alrawadieh, 2017). Other effective and expensive promotional tools that can
attract the customers are advertisement on T.V, hiring celebrities etc. For promoting the products
and services TUI has prepared its budget based on the activities performed under marketing
plan . Here is the budget prepared by TUI to launch their products.
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Particulars Amount
In social media platform (10%) 20000
On newspaper (25%) 50000
Sales promotion (10%) 20000
Advertisement on T.V (30%) 60000
CONCLUSION
From above report, it can be understood that is essential for organisation to understand
the marketing concepts and how they are interrelate with the organisation functions. Marketing
manager must have the proper knowledge of their roles and responsibility for maintaining a
healthy environment in the organisation and for doing the better market research, identifying
target customers, using promotional tools etc. Moreover, marketing manger needs to update their
marketing strategies by comparing their marketing mix from others so they can beat their
competitors. These strategies will help the manager to execute new decision and new marketing
plan in an effective manner so they able to achieve their goals and objectives easily.
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REFERENCES
Books & Journals
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Buhalis, D. and Amaranggana, A., 2013. Smart tourism destinations. In Information and
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