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Marketing Strategy of Thomas Cook

Paper Type: Free Essay Subject: Marketing
Wordcount: 4458 words Published: 1st Jan 2015

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Thomas Cook Group plc is busy in travel and tourism business. It gives services through over 4000 travel agencies and it has more than 280,000 employee’s resources. It functions a fleet of 96 owned/leased planes. It serves over 18 million travellers annually year through allowing them to attain over 2500 destinations. The group provides services under the main brands comprise Thomas Cook, Air tours, Neckermann, Condor, Ving, Direct Holidays and Sunquest. It has categorized five geographic functioning divisions: UK and Ireland, Continental Europe, Northern Europe, North America and Airlines Germany for organization reasons. (Dev, Chekitan S.; Don E. Schultz (January/February 2005,56-76)

This description given an in-depthbusiness, intended analysis of Thomas Cook Group plc. The description provides a whole insight into the commerce, as well as business structure and procedure, executive biographies and key competitor. The characteristic of the explanation is the detailed planned examination and Global Markets Direct’s analysis on the company. (Dev, Chekitan S.; Don E. Schultz (January/February 2005,56-76)

The company’s strengths and weaknesses and areas of expansion or turn down are analyzed. monetary, strategic and functioning factors are measured.

The occasions open to the company are measured and its growth possible assessed. reasonable or technical threats are highlighted.

The report contains important corporation information – trade structure and procedure, the company past, main products and services, key contributor, key workers and decision-making biographies, different position and imperative subsidiaries.

It gives detailed financial ratios for the history five years as well as temporary ratios for the previous four quarters.

monetary ratios include productivity, limits and returns, liquidity and influence, monetary position and competence ratios.

A rapid “one-stop-shop” to appreciate the corporation. improve business/sales performance by sympathetic customers’ commerce better. Get detailed stats and monetary & planned analysis on companies functioning in your industry. Recognize potential associate and suppliers – with key information on their businesses and place.

take advantage of on competitors’ fault and target the market openings available to them. Compare your company’s monetary tendency with those of your peers / contestant

Scout for possible attainment targets, with thorough insight into the companies’ tactical, financial and functioning performance. All of our commerce operate staffing, guidance and growth and reward policies suitable to their local markets. Over and above this, the innovative Thomas Cook Group has start a number of ambitious initiatives to remain the Group’s people at the front position of its trade. (Dev, Chekitan S.; Don E. Schultz (January/February 2005,56-76)

Chapter 2

Marketing strategy

Marketing mix

The marketing mix is the firm’s overall offer, or worth, to the client. conventionally, the marketing mix stand for in strategic terms, the total notion and application of the goods or services to be marketed. The basic advertising mix is often nicknamed “the 4Ps” (product, place/distribution, pricing, promotion); “these are basics in the marketers armoury – features that can be control to keep ahead of the opposition.”

(Goldstein, Doug 2007,68-87)


A product refers to the sum concept’ that is sell. The total creation consists of both touchable (e.g. raw materials, description, accessories) and insubstantial (e.g. brand name, product line, client service) parts. In wide-ranging terms, creation also refers to the needs-satisfying offering by a business to consumers. It is consequently more than the corporeal thing sold by the trade.


Price refers to the concluding cost of the creation that is paid by the consumer. It represents the built-in value of a product or service to consumers. A industry may apply a variety of pricing policies responsibility on revenue goals. consequently in Marketing terms: PRICE = PRODUCT VALUE

(Goldstein, Doug 2007,68-87)

financial demand analysis (through market research) will point to how much clients are equipped to pay for a meticulous product or service at any given point in time. Here, the superior the price of a good quality, the smaller amount people that will command the product. Their helpfulness (satisfaction level) is not maximised. In most cases as price fall (from P to P1) the product becomes moderately attractive and as such ‘in demand’ by regulars (Q to Q1). Total proceeds for a firm is represented by Price x number Sold, or: TR = P x Q (Goldstein, Doug 2007,68-87)


Place is largely concerned with both the site of business and the way of allocation between producers and customers. Only in rare conditions does the original producer or producer of products also act as the initial and final link to clients. The involvedness of up to date society makes it obligatory for mediators to act as a straight link between creator and the ultimate clients of products and services. A sharing channel refers to the type of go-between or linkage between producers and clients. A one-channel distribution network engage only the retailer between creator and consumer. Two-channelled sharing may include various mediators such as wholesalers. Direct sharing happen when the creator directly provisions the product to the purchaser. The choice of distribution channel is charge on a variety of factors, for instance the type of product. a quantity of products are not suitable for direct allocation. A channel specialist such as a warehouse or trader may provide an efficient link with retailers as an alive relationship may by now be in existence. (Haystack, 2005,26-36)


The group individuals relate promotion to direct publicity of a product . However, the result to buy a meticulous product (on or after knowledge presented) is a multifaceted and consistent process. In formal terms, promotion refers to the communication of information between seller and buyer. Its aim is to authority attitudes and behaviour. (Haystack, 2005,26-36)

Markering strategy

Tactical marketing

Mr Jason, managing director CEO of Dynamic Packaging Brokers rental site and a former deputy chief of operations of that company, said that Thomas Cook has taken the strategic decision to focus on trade. “Thomas Cook is interested in brand building. It’s all marketing tactics, using Windows and brochures and, looking at production. First Choice Holidays marketing director Sam Turnbull said that what happens in the present instinct reflects Thomas Cook in the travel industry to focus on prices led tactical messages. While a major rival of Thomas Cook UK, said, First Choice has made a conscious decision to change the trend. “In our company there is no conscience that long-term, low price leadership positions will not be good for the brand, if that’s all we do, “says Turnbull. (Haystack, 2005,26-36)

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In turn, the Morgan promised to continue the strategy of “MasterBrand” Thomas Cook, including sponsorship contracts, and putting into action plans for television advertising during the peak booking period in January and February. However, is quick to highlight the difficult environment in which Thomas Cook is working. “In these times we must be pragmatic about their spending,” he says. “When you have a blue-eyed children, such as Easyjet and Ryanair for marketing alert, which means that life is not easy, so every pound spent has to work for us, but some will be spent on building brand.

(Haystack, 2005,26-36)

Pragmatic approach

Despite the accusations of its rival Thomas Cook have flooded the market earlier this year, Morgan finds that the amounts were “almost normal”. “We have had excellent results both in price and volume, and greatly year to year,” he says. He refuses, however, be more job cuts and speculation about how much rental giant expects to save in the UK. Morgan is known about comparisons were made between him and Edwards and ready to be criticized. But while it can not be a classic brand marketing, retail seems to be first class. “Miles is not from the bottom of the first order, but I think it will do an excellent job of Thomas Cook,” says Roger Allard, the former head of First Choice, and now the president of all the Leisure Group, which owns the flight operator Discovery Cruise.

Chapter 3

Viral marketing

Thomas Cook is asking a “signing-on fee”, consideration to be resembling £2 m, from the organization it employ at the end of its ongoing £28 m media pitch. The travel company’s initial RFI to media organization outlines demands for a “considerable signing-on fee in return for a 2 year contract award” in adding to “a decrease in agency fees at present paid” and “a least amount 8% saving through combined medium buying”. (Joshi, Rakesh Mohan, 2005, 33-45)

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Agency sources offer that Thomas Cook assembly have since point out that it expects the signing-on fee to be in the area of £2 m. Hamish Pringle, the IPA director-general, supposed: “This is completely outrageous. It adds abuse to the injuries that unprincipled procurement people have cause on our industry. Agencies have to pull out of this pitch.” More than one organization claims to have boycotted the pitch and an group source explain Thomas Cook’s demands as “ridiculous”, claiming that it might take some years to split even on the commerce. (Joshi, Rakesh Mohan, 2005, 33-45)

However, another source of the agency, said: “It’s just a sign that customers are increasingly demanding Thomas Cook is not the first nor the last one ..” of the Thomas Cook did not prevent the four agencies pitching for the account. The operator, Arena Media, repitched against Aegis Media, Media brilliant, and Starcom MediaVest Group is expected to decide soon. The representative of the Thomas Cook, said. “Our current process step by media buying agency A review of several contracts through our business and that this process is still ongoing, we can not discuss confidential information which are part of the negotiations with institutions that want work with us. ” Thomas Cook began his media pass in April, when his team contacted recruitment agencies with RFI. Account includes the media online and offline for all brands, Thomas Cook, including its travel services division and going places travel agency brand. The main part of the company owned by Arena Media with MediaVest Manchester is working in Going Places, and marks direct flights. Beta, which was created last TV advertising campaign showing Jamie and Louise Redknapp, does not affect the process of reviewing media. (Joshi, Rakesh Mohan, 2005, 33-45)

Gurilla marketing

Guerrilla marketing offers, cheap and effective advocacy for relatively small companies that do not require large budgets to invest in traditional methods. This form of marketing is based on the fact that the campaign and the tactics used in it is very creative, sometimes unexpected and not to be identified by consumers. However, on the basis of the facts to include in advertising biased article, even big brands with the partisan approach, however, as represented in the guerrilla campaign, going to extremes, but the Message Stick, Although the tactics are unique and fun, they tend to disappear with ease. In addition, as noted, Guerrilla Marketing been hoped these campaigns, if underdeveloped in terms of segmentation of the target and transparency, ultimately, may be held jointly and severally damage the brand image. Guerrilla marketing is controversial because of the tactics, it is difficult to identify target segments, which can lead to confusion and panic. The messages are mostly exposed to the mass market, ranging from geographical, demographic, socioeconomic and psychographic. The denial of segmentation and targeting, leads to alienation, instead of assimilating the advertised product to large companies. (McLean, G. N., Osman-Gani, A. M.,& Cho, 2004, 637)

Thomas Cook said it was his turn, the advertising campaign was the “clean air” between him and Thomas Cook Travel. Marketing director Simon Carter, of course, the peaks of progress of the group is to eliminate the confusion between the two, using “emotion rather than price.” Million pound campaign will be launched at a major soap opera, film, or drama of Charles Dickens on Boxing Day. Will be distributed through television, newspapers, radio and even the function of “guerrilla marketing” – people walking in the streets. Most of the aircraft 42 in the combination of Thomas Cook and MyTravel also painted the fleet to improve the information campaign, while the control staff have a role. Staff of 800 groups of shops has shown in his television advertising conference last month and are motivated by career advancement, “said Carter. He did not reveal the exact message or slogan, but hinted:.” It’s an emotional and relevant to everyone in the state, we are the only company that can do this kind of campaign and get people to buy into it because we have 100. Year-old brand, we can do what Thomson and First option can not, “James Lee said. . (McLean, G. N., Osman-Gani, A. M.,& Cho, 2004, 637)

Chapter 4

Public Relation of Thomas cook

PR includes incomplete activities to make sure the firm has a tough public image. PR activities take in helping the public to know the firm and its products. parallel to successful advertising and promotions, efficient PR often depends on conniving and applying a well-designed PR map. The map often comprises account of what you want to express to whom, how you diagram to state it, who is accountable for various performance and with when, and how much money is budgeted to finance these activities. like to

marketing and endorsement, a media map and calendar can be very useful, which identify what media methods that are utilized and at what time. . (McLean, G. N., Osman-Gani, A. M.,& Cho, 2004, 637)

Peter suppsoed they were ‘looking at the alternative in terms of taking on

more outside PR agencies. Thomas Cook has hired self-employed specialist Hamate Janee to take for granted the head of PR errands until Smith’s descendant is recruited. Smith joined Thomas Cook in 1996 as PR manager for its monetary services process from Birmingham Midshires Building civilization, where she was leader of corporate infrastructure (PRWeek, 26 September 1996). Thomas Cook, bought out last day by Germany’s C&N Touristic Travel collection, is set for an usual IPO in manchester and Frankfurt in 17 months’ time with a worth of about £3 bn. . (McLean, G. N., Osman-Gani, A. M.,& Cho, 2004, 637)

Chapter 5

Stibo Systems’ clients comprise travel and tour worker such as Thomas Cook, Group RCI, SAGA and Trafalgar Travel; as well as foremost firms such as GE, Premier Farnell, Siemens, RS machinery, Millipore, Conrad Electronic, Patterson Companies, MSC engineering Supply corporation, Figleaves.com, Harbor Freight Tools and lots of others. Kevin Campbell, Accenture’s group chief managerial-Outsourcing, said, “High-performing corporation like Thomas Cook have establish they can be more planned, rationalize operation, reduce risk and get better overall business presentation by outsourcing some business processes to a solitary provider.” . (McLean, G. N., Osman-Gani, A. M.,& Cho, 2004, 637)

“Our successful, multi-process outsourcing association with Thomas Cook carry on to drive world-class efficiencies and suppleness into our client’s process said Alex Christou, a higher-ranking executive in Accenture’s transport & Travel Services rehearsal “Our partnership minimizes business complexity, allow Thomas Cook to focal point on exceptional client service and speed up the delivery of the back-office benefits resultant from its combination with MyTravel.” Strategic improvement of core systems seen as key to competence, litheness and client service. (Pfarrer, 2004,,73)

Thomas Cook Group signs IT contract with Capgemini

World-famous travel and free time corporation Thomas Cook Group plc has signed a bond with Capgemini for the radical modernisation of a centre IT system in the UK. The agenda is designed to considerably increase Thomas Cook UK & Ireland’s competence and flexibility, and change services to its millions of UK clients. By reform its IT, Thomas Cook also aims to improve its ability to satisfy developing client tastes and partiality, and increase its openness to changes in the travel and leisure bazaar. The Capgemini expansion will allow Thomas Cook UK & Ireland to restore a number of its existing IT systems by organizing new technology able to support the end-to-end organization of all features of tour and travel running from booking through to delivery. A fundamentally modernized reservation and running system will enable Thomas Cook UK & Ireland to market and hand out both custom-designed and conventional package holidays via numerous channels including websites, call centres and travel agents. The IT growth programme also aims to make easy rapid mixing with external IT systems from third party supplier such as hotel groups, airlines and car hire companies. (Pfarrer, 2004,,73)

Adven jones, Programme Director at Thomas Cook Group plc, supposed: ‘People booking holidays need the autonomy and flexibility that today’s choice of booking channels gives them, but they what’s more appreciate the customary values of service, refuge and expertise that Thomas Cook can provide. The novel Capgemini progress will allow us to offer our clientele the best of both worlds, marking an imperative new chapter in the uncompleted expansion of the holiday business.’

Thoams cook proejcts

The fresh enterprise will drive the subsequently phase of Thomas Cook’s GLOBE agenda that was publicize in 2007. The new development will meeting point on Thomas Cook Group plc’s performance in the UK market, its principal trade segment. Thomas Cook Group plc selected Capgemini as main contractor for the plan following a review of spirited proposals. It says that Capgemini was particular since of its attractive business proposal, its commitment to combined working and its management in ‘agile’ software growth, a technique which facilitate rapid and iterative fine-tuning of IT systems to business requirements as the development procedure earnings. Other important factors were Capgemini’s capability to offer excellent class and value through its Rightshore® liberation model, and its first-class orientation from existing clients. (Pfarrer, 2004,,73)

The 60-strong Capgemini band of authority from the UK, Germany and India will be founded at Thomas Cook’s offices in Peterborough and at Capgemini Accelerated Development Centres in Birmingham and Manchester, UK and Mumbai, India. The efficient systems are usual to centre on mainly custom-designed software but will also comprise an Oracle database and IBM Websphere mechanism. As well as portion the holiday-making public, the systems will also be admission by Thomas Cook UK & Ireland people in Thomas Cook main offices, stores and call centres. Capgemini is preliminary growth work on the programme right away. The initial Release within the programme is planned for Q4 2009 with final conclusion within 4 years. Harvery Programme executive at Capgemini UK, thought ‘The Thomas Cook Group plc is a first-rate name in travel and tourism and we are self-righteous to be hand over with this crucial project – one which, we believe, will transform the face of tourism and open up many exhilarating new opening for holiday-makers from the UK.’ Thomas Cook Group plc is one of the world’s most important leisure journey groups with sales of £9.8 billion, 21.3 million clients, fleet of 93 aircraft and a system of over 3,400 owned and permit travel stores and interests in 87 hotels and resort properties.

Merger pros for group

Mergers and acquisitions are beneficial for the next group Thomas Cook, which can generate large profits for the company and expose the business a lot of financial resources. For a company that is on the verge of bankruptcy or in financial trouble for other reasons, a merger with another company may be the only way to not only save the company, but also free up some much needed money and credit. Acquisition of the business to create a conglomerate or a quick sale to a group Thomas Cook, and make a profit, may be part of the charm of mergers and acquisitions. In the UK, steps to buying a business or a merger with the subsequent need to be respected too. European Community Merger Regulation supervises the work of all mergers and acquisitions, which benefits the group Thomas Cook. Firms scrutinize dealings between the parties, whether corporate merger or acquisition. Stakeholders to be considered, because once a deal is completed, the entire debt of the company and issues inherited by the new owner. Employees are merged in, you should receive fair compensation or to secure positions in the company’s mixed, retrained or sent to another company. (Pfarrer, 2004,,73)


Thomas Cook Group is dedicated to treating everybody fairly and rationally according to their personality qualities and abilities deliberate against our justifiable business requirements. Thus, any form of illegal discrimination would directly or indirectly on grounds of sex, gender reassignment, pregnancy, skin color, race, nationality, ethnic or national origin, sexual orientation, disability, age, religion or belief, or because someone a married or a partner will not be tolerated. Thomas Cook Group should aim to reflect the diversity of the community in which he works, as values of the individual contribution of all employees and recognizes their legal and social responsibility. Thomas Cook Group is committed to promoting equality and all employees must help to ensure that the values of respect and be proud of that culture, climate and work environment free from harassment and discrimination. (Pfarrer, 2004,,73)

Thomas Cook flexibility in our business model asset light must be of decisive importance in the intervening period we have improved our ability to support our future work in difficult trading conditions. Resistance Group believes it should have in the current difficult trading environment is based on flexibility, strength of our business since the merger and rationalization of capacity in the industry. Reduction potential in the UK market, for example, is about 25% in the last two years, through our actions and those of other market participants.

Thomas cook Group have to take benefit of their buying power to administer lodgings costs, which stand for over 32% of income. Thomas cook Group has to be certain that negotiations with our dealer will effect in prices no higher than previous year’s levels crossways the Group this year, in spite of adverse travels in currency. The ability to alter our cost base for probable changes in demand is also significant, above all in the current market surroundings. Only 12% of Thomas cook Group group-wide hotel capability are devoted for summer 2008, which gives us substantial scope to make further aptitude adjustments; and in the UK, around 89% of our tour operator flying wants are take on by our own fleet, let us considerable flexibility to cut ability without impacting our own airline’s process. Tight control of all costs is a basic part of the Thomas Cook trade model. In addition, they have to build up contingency plans to cut their transparency costs further should tougher market surroundings prevail. Podcasting (procedure online radio station) will be good quality method to hand out their own radio show all over the world for free. Creating podcast them will be intelligent to deliver them post everywhere, anytime and on a lot of mediums. They can also send regular e-mail to potential and former clients. It will help them to sell them service and turn out to be more winning in the marketplace of travel and sightseeing industry. Travel and tourism e-marketing skill are so simple and automatic that even a novice can employ them to encourage his trade and attract new clients. (Pfarrer, 2004,,73)


It is important that Thomas groups understand that managers are working through changes, too. They are under a good deal of pressure from new leadership to perform. If one can show his new leader that you appreciate this and attempt to make his or her transition easier by aiding the integration of the two information security groups, he or she will most likely appreciate your help, cementing your position as a valued member of the new team. One such tactic is to help the new manager understand the work environment and culture of your firm. In December 2007, we announced plans for a £290m (€375m) share buyback programme and the programme was launched in March 2008, following approval at an EGM held on 12 March 2008. In proposing the programme, the Board believed that the repurchase of shares was the best way to return value to shareholders, while at the same time improving earnings per share and balance sheet efficiency. At the close of business on 30 September 2008, the Group had purchased a total of 107,124,730 shares for cancellation, at a total cost of £263.5m, excluding commission. Of these shares, 48,595,331 were purchased from Arcandor AG, as a result of which Arcandor’s holding was 52.8% of the Group. The share buyback programme concluded on 9 October 2008. Up to that date, a total of 120,059,117 shares were purchased for cancellation at a total cost, excluding commission, of £289.9m. Of these shares, 55,426,756 were purchased from Arcandor AG, maintaining its holding of 52.8% in the Group.


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