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Thomas Cook

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Cynthia Wang

on 12 August 2015

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Transcript of Thomas Cook

Thomas Cook Group PLC Consultancy proposal
Amy Feng, Chris Fang
Cynthia Wang, Fanny Zhang
Melody Lin, Ya Zhang

Environment Analysis
Objectives and Marketing Mix
Key Trends and Strategic Choice
Industry Overview
Thomas Cook Group Introduction
Environment Analysis
Porter’s Five Forces
Resource Audit
Key Trends
Strategic Choice
BCG Matrix
Marketing Objectives
Marketing Mix
Projects & Budget
Implementation & Control
Industry Overview
2023: £166.1 bn
Industry Overview
Thomas Cook Introduction
The world's oldest travel firm since the year of 1841.
Operates under 6 geographic segments & is number 1 or 2 in its core markets.
Revenue of £9.4 billion in 2012, serving 23 million customers.
Thomas Cook Introduction
Package Travel
Pre-packaged holidays and dynamical packages

Independent Travel
Individual components or dynamically created travel
Travel and Financial Services
Travel money, travel assurance, travel finance
Travel Industry
Environment Analysis
Environment Analysis
Framework adapted from Porter, 1985; Porter, 2008; Datamonitor, 2012; TCG Annual Report 2012
Environment Analysis
Porter’s Five Forces
Environment Analysis
Resource Audit
TCGAnnual Report, 2012; IBTimes, 2012
Intangible Resources NEUTRAL/STRENGTH
Leading leisure travel service company
Goodwill (£ 80.5million)
23 million customers
Strong brand and customer loyalty. However, this has been recently damaged due to financial difficulties.
Physical Resources NEUTRAL/STRENGTH
Aircrafts – 91
Retail outlets – 3,637
Employees- 31,000
Financial Resources THREAT
November 2011 saw a fall in shares by 70%; September 2012 saw a rise in shares of 9.38%
Net debt reduced by £103m (from £891m to £788m)
May 2012 TCG agreed on a financial package worth £1.4bn
Human resources STRENGTH
Established relationships with UK & German Universities
Offering Degrees and on the job training
Formal development programmes
Rivalry among existing competitors
Threat of new Entrants
Supplier Bargaining Power
Buyers Bargaining Power
Threat of Substitutes
Numerous competitors
Price wars, heavy discounting
High storage costs or perishability
Rivalry among suppliers
Suppliers forward integration
Relatively Low
High fixed costs
High exit barriers
High entry barriers  initial investment
Relatively High
Convenient transport
Rise of low-cost carriers
Direct sales from suppliers
Low switching costs
Standardized products available everywhere
large volumes (group purchase)
Information transparency
Key Trends
Tailor-made tours
More individual holiday experiences, more flexible itineraries but still with all the security and benefits of a package and more affordable options.
Package travel
The trend for an increase in package holiday bookings is expected to continue into 2013.
Key Trends
Customer behavior
Growth of online booking
The rise of low-cost carriers
Age group trends
Aged 15-34 take more holidays abroad than any other age group
Strategic Choice
BCG Matrix
Independent travel
Financial service
Dynamic Package
Market Growth
Market Share
Strategic Choice
Framework adopted from: Ansoff (1957), Kotler et al. (2009); Porter (1985), Weihrich (1982) cited in West et al. (2005: 88)

Source: ABTA, Travel Trends Report 2013; TCG Annual Report 2012
Package travel
The number of travellers aged 55+ has increased to 23%, while 35% are in the 15-34 age category and 42% are aged between 35 and 54. Holidays remain the dominant reason for taking an international trip (71%), ahead of business travel 16% and other reasons such as visiting friends and relatives (13%). More people are flying on holiday than using their car or another means of transport.
ITB Berlin 2013
Marketing Objectives
Marketing Objectives
Market Target
Continue to target customers in the age of 15-54 (77%).
ArkLeisure model
Target at ‘High Street,’ ‘Followers,’ ‘Style Hounds' ,'Traditionals', 'Habituals' and 'Functionals'.
Marketing Objectives
STP- Positioning
Low Brand Quality
High Brand Quality
Low Priced
High Priced
Marketing Objectives
STP- Repositioning
Increase brand quality by rebuilding trust among consumers, yet at an affordable price
Low Brand Quality
High Brand Quality
Low Priced
High Priced
Marketing Objectives
Short-Term Objectives─to be achieved within the next 2-3 years
Enhance trust of the TCG brand among consumers
Customer satisfaction up to 85%.
Market expand: revenue increase
Financial restructure: reduce financial debt
Enhance its technological offerings in order to become the leading e-travel agent
Marketing Objectives
Long-Term Objectives – to be achieved within the next 10 years
Become market leaders with its package travel
Customer satisfaction up to 90%
Package travel by increasing market share by 10%
Reduce debt burden: leverage financial position
Manage profit margin up to 5%
Marketing Objectives
Marketing Mix
High-quality service and diverse travel routines.
Competitive Pricing
User-friendly website surface
Traditional & Digital methods.
Supply chain management
Employee training
Physical Evidence
Blogs for sharing experience
Projects & Budget
86% of overseas and 91% of domestic travel transactions in the UK are now “digitally influenced”. Digital channels: websites, social media, peer reviews and smartphone or tablet apps.
According to Google 80% of travel products in the UK are researched or purchased online, the highest figures for any country in the world.
Projects & Budget
Trend in Using Digital Services
Projects & Budget
Mobile Apps
Mobile apps in the UK often do better than the more established online presence for some travel companies.
Consumers who plan travel on their mobile device
29% booked or researched accommodation
27% researched destinations
26% read traveller reviews
23% researched restaurants
18% booked or researched flights
With hundreds of downloads daily the Thomas Cook brochures app, developed by VSI-thinking, is hugely successful.
Thomas Cook application have been fantastic with over 15,000 app downloads in just a couple of weeks.
The Brochure Store app has had tens of thousands of downloads from iTunes in the first five months and Thomas Cook predicts there will be a quarter of a million downloads within the first 12 months.
Projects & Budget
Site-map Navigation
Currency trend and exchange
Reserve services
Projects & Budget
Marketing Budgets on Digital
Three-quarters (74%) of companies invested more in digital marketing technology in 2012.
Companies are spending 35% total marketing budgets on digital.
Projects & Budget
Marketing budget
Projects & Budget
Traditional Advertising
Projects & Budget
Traditional Marketing Programmes
Implementation & Control
In order for the Thomas Cook Group to successfully implement its marketing strategy it is essential to identify, evaluate and take appropriate action in order to achieve its objectives on the three business levels.
Internal control
* The achievement of operational or strategic goals
* The improvement of financial conditions
* Operating efficiency and effectiveness maximization
* Profitability of marketing management activity
* Individual project and products performance

External control
* The utilization of laws and regulations.
* The future trend of tourism market
* Seasonal market situation analysis (market share and market increasing rate)
* Supervise the market condition and inhabitant's purchasable ability
Thank for Listening!

Any Questions?

Source: the eDigital Research, 2012;TravelDailyNews, 2011
Source: Econsultancy, 2013
Over two-thirds (70%) of companies surveyed derive up to 50% of their total revenues from digital marketing spend.
VSI-thinking eBusiness systems have helped save Thomas Cook millions of pounds.
Projects & Budget
Advantages of Digital Marketing
Source: Econsultancy, 2013
Projects & Budget
Digital Marketing Programmes
Set backs through financial difficulty…
Affect on trust relationship with customers
However recently reduced their net debt further to £788m
On the road to recovery
By implementing a Market Penetration strategy and marketing mix…
Help the Group re-establish market position
Re-build trust with its customers
Bring simplicity and security to website
On target to repay all debt by 2022
Market leader in independent industry – all inclusive
Source: WTTC,Travel & Tourism Economic Impact 2013
Marketing Objectives
Source: Deloitte, 2012
Mobile applications (57%) QR codes (48%)
Mobile commerce (34%) Mobile advertising (31%)
Mobile-optimised emails (31%) Mobile search marketing (28%)
Ansoff, H. (1957) 'Strategies for Diversification', Harvard Business Review. Vol.35, No. 5, pp. 113-124.
Armstrong, G, Kotler, P., Harker, M. and Brennan, R. (2009) Marketing: An Introduction, Essex UK: Pearson Education Ltd.
Budgets study shows mobile apps, QR codes and ads are top priority, 2012. Econsultancy. [online] Available at:< http://econsultancy.com/uk/blog/8889-budgets-study-shows-mobile-apps-qr-codes-and-ads-are-top-priority> [Accessed 28 February 2013 ].
Datamonitor (2012) Thomas Cook Group [Online]. Available at: http://360.datamonitor.com/Product?pid=657A516D-8285-402E-BF7D-327F8742C5F4. [Accessed 04-03-2013]
IB Times(2012) Thomas Cook Expects Turnaround as Bookings Rise. International Business Times [Online] 29 September. Available at: http://www.ibtimes.co.uk/articles/389361/20120929/thomas-cook-uk-turn-around-working-improvement.htm www.ons.gov.uk/ons/rel/lms/labour-market-statistics/october-2012/index.html. [Last Accessed 17-03-2013]
ITB Berlin, 2013. New report highlights need for online bookable travel websites. [Online] 29 September. Available at: http://www.digital-trip.co.uk/about/news-items/new-report-highlights-need-for-online-bookable-travel-websites-372.aspx. [Last Accessed 11-03-2013]
Keynote (2012a) Holiday Purchasing Patterns Market Assessment 2012. July 2012. Available at: http://www.keynote.co.uk/market-intelligence/view/product/10594/holiday-purchasing-patterns/chapter/1/executive_summary#.[ Last Accessed: 04-03-2013]
Keynote (2012b) Travel Agents & Overseas Tour Operators Market Report 2012. January 2012. Available at: http://www.keynote.co.uk/market-intelligence/view/product/10519/travel-agents-%26-overseas-tour-operators/chapter/9/league-tables# [Last Accessed 04-03-2013]
KUONI (2012) KUONI [Online]. Surrey: Kuoni Travel Ltd. Available at: http://www.kuoni.co.uk/en/pages/default.aspx#/. [Accessed 04-03-2013]
Marketing Budgets 2013, 2013. Econsultancy. [online] Available at:<http://econsultancy.com/uk/reports/marketing-budgets> [Accessed 28 February 2013 ].
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Thomas Cook Group (2011a) Annual Report 2011 [Online]. London: Thomas Cook Group plc. Available at: http://www.thomascookgroup.com/annual-reports. [Last Accessed 12-03-2013 ]
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