ThomasCook.doc

Market Plan for Thomas Cook GroupExecutive SummaryThis report provides an appropriate situational analysis and relevant discussion of the case Thomas Cook Group, an great corporation in the tourism business sector. By analyzing the current situation of tourism business in todays world and the developing strategy of Thomas Cook Group, this report gives a new strategy that is to develop new products and new tour routes. And then this report gives a comprehensive evaluation of the strategic direction that the company needs to follow. At last, this report discusses the key leadership issues to support the implementation of this new strategy. Introduction Marketing plan is the strategic plan of a company. It is a core part in a company to point the right direction and program the kinds of events correctly. The basic function of the marketing plan is to fully implement the right strategy. A perfect implementation of the marketing plan can produce a perfect tactics, and the marketing tactics can offset the deficiency and turn into the useful strategy. Travelling is a necessary part in peoples daily life, and the tourism industry has become a booming business which draws a great attention of people. In addition, in the background of global market, the competitions in tourism industry become more and more fierce. Therefore, how to develop a global marketing strategy is increasingly important to a tourism company, such as the first modern tourism companyThomas Cook. Thomas Cook has a long history, and it is one of the most influential tourism companies in the whole world, and it is one of the earliest companies which launch the global tourism management. This report takes Thomas Cook as an example to give a comprehensive analysis of the environment and culture and the business performance, especially in which the leadership plays the key role. Firstly, in this report, the author reviews the development history and status quo of Thomas Cook Group. Consequently, the situational analysis is discussed, and the possible challenges and opportunities that the company may face will be analyzed. In the third part of this report, the author gives a new strategy that is to bring out new travel products and routes, and then analyzes the supporting information of the proposed strategic direction. And lastly, this report identifies the major leadership issues to make sure that the strategy would be implemented smoothly.Discussion and AnalysisThe Develop History and Status Quo of Thomas CookThomas Cook Travel Agency was founded in 1845 by Thomas Cook of England, and it is the earliest travel agency in the world. The establishment of Thomas Cook Travel Agency symbolized the born of modern tourism. Thomas Cook (18081892) borrowed a train to carry people from Leicestershire to Loughborough and received one shilling per person and then he found the profit potential in it. And in 1845, he founded the travel agency to specialize in agent of travelling, and this travel agency became the first all-time tourism agent. Therefore, Thomas Cook is known as the father of modern tourism. In the after one century and a half, Thomas Cook Travel Agency gradually expanded the business scope and business space with the increase of the companys power. In February 2007, Thomas Cook Travel Agency merged with My Travel, and Thomas Cook Group was established, listing on the London Stock Exchange. Now, the business scope of Thomas Cook Group almost covers all fields of tourism service business. Thomas Cook Group owns more than 600 travel agencies, more than 25000 employees, and more than 70 airplanes which can provide air charter service. And the airlines can reach major tourist destination all over the world. Moreover, service facilities are set on the main channels of major airports such as in London, New York, Frankfurt, Sidney and Hong Kong. Thomas Cook Group now has become the biggest travelers cheque publisher in the whole world, which serves more than 4000 financial institutions and more than 16000 commercial tenants with tourism financial services. In addition, Thomas Cook Group covers the first place in the list of specialized corporations in foreign currency exchange. More than 700 operating networks are set in major airports, ports, railway terminals and tourist and commercial centers in 35 countries, and it has established partnership with more than 16000 commercial institutions. In 2005, the revenue reached 7661 million euro, and the net profit was 111 million euro. And in 2006, the revenue got 7780 million euro, and the net profit was 180 million euro. Whats more, Group is one of the earliest travel agency to stretch the global travel services, and in the years of development, Group expands its business domain via merge, acquisition and partnerships.Industrial Environment and Situational Analysis Tourism plays an important role in the whole European economy. Especially the global travelling to Europe in an intangible global business brings a lot of profits and increases considerable jobs. But in recent years, Europes tourism industry has suffered a series of beats: global financial crisis, economic recession, costly oil, weak dollar, and most seriously the euro crisis. That made the travel business in trouble, and all travel agencies have to go out of their way to survive. Therefore, many companies including Thomas Cook seek to merge and acquisition, closing the branches or reducing employees. Because of euro crisis, a number of business trips were canceled. In 2011, Thomas Cook Group also was in trouble, many tourists from Europe canceled their trips, and because of the unstable political situation in Egypt and floods in Thailand, Group lost 50% of tourism orders. Whats more the new technology, such as video conference and the new thoughts of travelling among people, for example, many young people prefer to take trains to have a budget travelling, have great impact on the tourism business. In the serious context of economic recession, Thomas Cook lost 326.1 million before tax from September 2010 to June 2011, and Manny Fontenla Novoa, the boss of Thomas Cook was forced to quit his job after three profit warnings. Therefore, Thomas Cook Group in the end of 2011 had to announce that in the future two years the company will shut down more than 200 travel agencies and foreign currency exchange sites, and cut down more than 1000 employees. However, in 2012 London will host 30th Olympic Games. It is a great opportunity for the Great Briton, even the whole Europe. In 2000, when Sidney held the 27th Olympic Games, the Australia government gained the profit of 350 million ponds, and the figure is the highest among holding modern Olympics. The Sidney Olympic committee said that holding Olympic Games is a most outstanding driver to tourism industry. At a particular period of time, the host city will become the highlight of the whole world, and it will become the tour resort to attract millions of people. From the perspective of experience, Olympic Games may leave more or less attractive resources such as Olympic stadium and Olympic culture, which increase the service export capability in kinds of aspects, such as tourism, sports and global trade. In addition, tour consumption of tourists is considerable. For example, during the Beijing Olympic Games, the foreign tourists consumption in hotel, transportation, catering, telecommunication, and shopping was many times higher than at ordinary time. So Olympics will bring great business opportunities to the tourism relevant industries. Whats more, Olympic Games help London establish the tourism brand. During the Olympics, the host city will attract more than 10000 journalists who will become the broadcaster for the host citys politics, economics, society and culture. At that time, the tour brand of Great Britain will provide benefits to every business in the United Kingdom. From above discussion, the economic situation in Europe now is not optimistic, but London Olympic Games is a golden chance for the tourism in Europe. Every travel agency will take advantage of this opportunity to attract customers and grab the market. So Thomas Cook Group should seize this period of time to find a strong marketing plan improve the performance and to gain confidence for employees. The StrategyDevelop New Products Targeted Specialized Customers Different people have different aims and wants in a trip, some special events and motivation can be designed in travel agencies to meet some specialized needs, such as trip of famous colleges, trip to feel the masters of English literature in 19th century and so forth. And for example, as to the period of Olympic Games, a specialized tourist product can be developedOlympic tour route that mainly targeted the consumers in Asia.As for this golden period of the 30th Olympic Games, it is suggested a special Olympic tour route that mainly targeted the consumers in Asia should be launched. This proposal is based on the Asian current situation and the advantages of Thomas Cook Group. Asia, especially the East Asia and Southeast Asia, is a market with great potential. Entering 1980s, China and ASEAN countries as the leads are witnessing rapid increase in economy. The rapid development in industrialization makes the Asia-Pacific area become the most vigorous area in politics, cultures and economics. In addition, the subprime crisis and euro crisis had fewer effects on Asia than on Europe and North America. And with a series effective measures and cooperation with each other, Asian countries keep a steady development and seek for a greater stage. People in these countries suffered less, and travelling still is their major choice to make pleasure and get relaxed. On the other hand, the period of Olympic Games is just the summer holidays of most students. Many parents will take their children to watch game events, and people have a high spirit of taking part in the big event which was held every four years. Therefore, a specialized route designed in taking customers in Asian countries to London not only to visit the beautiful spots but also to provide a series of services in order to make them watch Olympic Games more easily and pleasantly. Whats more, Thomas Cook has more advantages than other travel agencies. Firstly, Group has the charted airplanes services, which provides a more convenient service for customers. Secondly, in the process of management, Thomas Cook adopts modern