Essay About 1.1.Strengthsthomas Cook And Customer Loyalty

Thomas Cook Managing Marketing
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[pic 1]1.1.STRENGTHSThomas Cook is the market leader in the UK Travel Industry, renowned for its reliability.Thomas Cook has the best overall reputation in the industry in which it operates (2011 PR Week reputation survey).Customer loyalty is high with 23 trusted customers embracing the brand operating under 06 geographical segments in 21 countries.Thomas Cook is a well-known brand with high brand equity and reputation being in business since 1800’s, passed on from one generation to another, still inspired to deliver the Founder’s values.Thomas Cook leading publishing division offers a wide portfolio of over 300 travel guidebooks distributed to over 150 destinations worldwide.The organization has adapted to changing customer needs and preferences by launching its “store of the future”-where customers can research and book their holiday according to their requirement, viewing video content via in store tablet or by a store travel expert to reassure their purchase.Thomas Cook has partnered with TV chef James Martin to improve quality of inflight meals to add on to the customer experience.The organization operates to define Corporate Social Responsibility to minimize the negative and enhance positively- environmental, social and economic impact.The Thomas Cook Children Charity raised over 3.7 million pounds to help sick and disadvantaged children worldwide. The Thomas Cook Airlines are among the most efficient in the World.Suppliers are regarded as an extension of the Thomas Cook business and ‘Travel life Sustainability System” in owned hotels and wider supply chain encourages best working practices and open communications which builds trust, promotes efficiency which reduces waste & cost which is rewarded, improving customer satisfaction Thomas Cook offers a range of products and services distributed through a range of channels (internet, in house retail, joint ventures, sales centers) which enables different customer segments to engage with the brand at their convenience.  Strong service orientation of the brand where customer feedback mechanisms help to further develop the brand by improving the Thomas Cook experience and customer experience and satisfaction.    Employees are carefully recruited, given a rigorous training to enhance talent and provide product knowledge to deliver high standards of customer service. Internal marketing activities, clear job promotion structure, rewards and recognition motivate employees to perform better and deliver better to the customers of the brand..Offering product personalization will increase customer satisfaction tailoring the product offering to meet individual requirements.         1.2 WEAKNESSES1.2.1 Thomas Cook reported an operating loss of 267 million pounds in financial year 2011.1.2.2 Reducing store numbers and retrenching staff due to economic downturn causing the loss of many jobs has angered the transport salaried staff association representing the employees which has a negative impact for the company’s reputation and trust.1.2.3The brand structure is complex.1.2.4The Organization has a debt of more than 1.4 billion to repay.1.3. OPPORTUNITIES1.3.1During recession, the number of domestic holiday services in the UK has risen by 18% in 2011, this presents a significant market to be penetrated into.1.3.2 In purchasing travel, most customers (nearly 79%) want to see reliability promoted more vigorously as it is an important factor in purchase decision making. 1.3.3 Spain retains a high share of 25% of all foreign holidays giving companies operating in the industry to design and charter more holiday packages collaborating Spain.1.3.4 Technological Advancements has led to proliferation of the internet and increased web bookings. Development of digital technologies such as smartphone apps, blogs supports the technological innovation demanded by Thomas Cook’s target market.1.4. THREATS1.4.1 Holiday spend (travel industry) is the worst hit part of customer spending budget in economic downturn.1.4.2 The number of foreign holidays declining as a result of recession.1.4.3Customer perceived risk is a factor when purchasing “travel.”1.4.4 Company is affected by external threats such as unrest in Middle East and North Africa affecting its extensive operations in Egypt and Tunisia indicting a 317 million pounds operating loss in 2012.1.4.5 The pricing of holidays is complex due to its perishable nature and fluctuations in fuel costs.1.4.6 New competitors, new entrants to the industry have shown impressive results (Expedia and Virgin Holidays).High threat from new entrants.1.4.7The travel industry in which Thomas Cook operates in is highly competitive and growing.1.4.8 Due to change in customer spending habits with the internet being the preferred choice, many travel companies including Thomas Cook have been forced to reduce number of stores and retrench staff leading to negative publicity.[pic 2][pic 3][pic 4] Interest[pic 5] PowerLOWHIGHLOWMinimal EffortGovernment, Media                   Keep InformedCompetitorsHIGHKeep SatisfiedPressure Groups, Charities, CommunitiesKey PlayersStaff, Customers            Suppliers, Partners/Channel  members, Shareholders