1. Section one

1.1 Introduction

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For this report it will explain about an exhibition which was first created in the UK/Scotland, and it developed between 1802 until now. This is one of the exhibitions that attract tourism from different countries, therefore it is climacteric to this country especially to the leisure and tourism industry, because it has controlled to the balance of payments in bulk. This exhibition is Madame Tussaud's.

The report wills analysis different aspect of the exhibition within marketing strategy. The structure of this report will be as follow:

> The aim of the report

> Background/history of the exhibition

> Main point of the SWOT analysis

> Analyse their target market, current market and potential market

> Analyse their environmental concerns and PEST/Macro environment

> Analyse their promotional plan, illustrate their objectives of plan, action programme and distribution

1.2 Aim

The main aim of this report is to find out the strategy of the Marketing process within

Madame Tussuad's, as it is one of the top attractions in the UK. Therefore, this process is significant to Madame Tussuad's for long-term existence.

1.3 Background

The Tussaud's Group, a subsidiary of Pearson PLC, the international media group, runs the UK and Europe's top attractions. During 1994, the Tussaud's Group acquired a 40% equity stake in Port Aventura, near Salou in Spain. (Appendix1)

The most climacteric department within the organisation is the Marketing department, because it finds out their customers needs and wants, how to develop their product and the type of advertising that is required in order to create awareness of their new brands, either for domestic or overseas customers. This can be done through promotion. The type of promotion that Madame Tussaud's uses are; leaflets, booklet, posters, Internet and TV/ Radio.

Referring to the Madame Tussaud's organisational structure (refer to appendix 2) it is hierarchical. Within the structure we can see there are many different types of managers. One type of manger is the "CSC manager" which is responsible for organising the exhibition and keeping the people mainly around the exhibition without causing problems. This structure helps the marketing department to help grow the organisation to be able to reach its targets, which also lead to meets customers satisfaction.

Madame Tussaud's is based on being democratic. Decisions are made as a result of a consultation process involving various members of the organisation. Ideas would be discussed and thought through collectively. Within Madame Tussaud's organisational structure, we can find a Democratic structure. Madame Tussaud's tends to be found in situation were it is felt to be important for all members of the organisation to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team.

Leading to Madame Tussaud's objectives they are equally committed to continually upgrading their exhibition and keeping ahead with new technology and developments. In order for their success, it is vital that the attraction competes with products, offered both at home and abroad.

Their objectives are:

* To keep their product quality ahead of the field

* To develop and retain a strong leadership position by providing high quality, excellent value of money and an exciting, innovative exhibition

* To stay London top paying tourist attraction

* To attract all types of customers, such as; disabled people, and all other ages. As well as Domestic and Overseas visitors

In order for Madame Tussaud's to meet those specific targets, they;

* Increase admission number and PR coverage

* Increase share of their top existing overseas marketing's and those development marketing's currently showing rapid growth

* Improve enjoyment and value of money rating their visitors (according to WTTC: the No. Of visitors in 2000 were 2,388,000. It's the forth top attraction in UK IN 2000 (Refer to APPENDIX 3)

1.4 SWOT Analysis

This can be used in order for the organisation to achieve their objectives. This procedure is an effective method of identifying businesses Strengths and Weaknesses, and to examine the Opportunities and Threats they face. Often carrying out an analysis using the SWOT framework that will be enough to reveal changes, which can be usefully made. Swift (2000)

According to Hannagan (1992) he defined SWOT analysis as:

"A SWOT analysis helps to focus attention on the key areas in an organisation that need to be taken into account in producing a marketing plan....

A SWOT analysis is a summary of the marketing audit. It highlights internal differential strengths and weaknesses form the customers point of view as they relate to external opportunities and threats."

Madame Tussaud's is like any attraction/organisation that analysis its internal factors; this is carried out in the marketing process, to analyse the effectiveness of the business operation and their internal factors, which influence to their success. This is achieved by conducting the SWOT analysis. (See appendix 4)

Section two

Kotler (1994) believes marketing a product/service, includes potential customers for using this specific product/service. Therefore, organisations will effectively market their product/service according to the Segment of market. This has been known as Target Market.

Additionally to Lancaster & Reynololds (1999), indicate that, in order to acquire target segment, the organisations has to break down the amount of the total market into different sub-groups / segments, according to their needs and wants, in-order to make the product/service attract consumers within that market segment.

Madame Tussaud's uses segmentation and targeting market, because it provides many advantages to their organisation, such as:

* It allows the exhibition to identify their customer groups with different needs and wants

* The exhibition goals can be achieved easily. For example; profit maximisation and long term growth

* When there are market gaps in a market, it is appraised and then satisfied, this can be done by using unique product / promotional offerings

* By handling marketing mix, in order for efficiency recognise the target requirements. This will lead to an increase customers satisfaction

Additionally, Kotler (2000), Adcock, Halborg and Ross (2001) and teacher notes indicate that segmentation divided into many categories, which are: Demographics segmentation, Socio-economic segmentation, Geographic segmentation, Psychographic segmentation, Purchase Behaviour, Family Expenditure and Attitude to product. Those categories help the organisations to identify who are their segments.

As mentioned before, the Target Market for Madame Tussaud's is to attract all types of consumers, from all social classes. As well as Domestic and Overseas visitors. (Refer to appendix 5)

According to the student pack of Madame Tussaud's, it identifies their Current Market as Demographics Segmentation according to social class. (Refer to appendix 6)

As we can see from the appendix, Madame Tussaud's seems to appeal to social class C1 (Skilled/Technical, by 35%)

Nevertheless, by using the information of their current market, we can predict that Madame Tussaud's Potential Market could be:

* Attracting more domestic tourist

* Produce product that can be useful for professional social class

* Find ways in order to attract social class E.

Section Three

3.1 environmental Concern

According to the teacher handout, if we looked at the Environmental Concerns, we would find that, there are two types of environmental concerns which all organisations would recognise, they are:

* Internal Environment * External Environment

Internal Environment has been known as costs, product range, staff skill, time, and company organisation company goals and objectives. Kolter (2000) believes, that internal environment is been used within the organisation to analysis its opportunities and threats.

Where else, External Environment has been known as business climates, economic climate, change in market demand, consumer behaviour, competition and existing market position. (This is been known as Pest/Microenvironment). Kolter (2000) believes, that external environment is been used within the organisation to analysis its strengths and weakness.

3.2 Pest/ Macro Environments

Supporting this view, Kotler (2000) he believes, marketing environment is a competition force in marketer performance, therefore it comprise Task environment and Broad environment.

Task performance involves instantaneous action in producing, distributing and promoting the organisation offering. Where is, Broad performance involves the PEST/Macro-environment, which have a significant impact upon the Task performance in order to be achieved.

Dalrymple & Parsons (2000) and Adcock, Halborg and Ross (2001) and Palmer (2000) summarise Kotler (2000) view, by illustrating these informations into a diagram. (Refer to appendix 7).

It's clearly shows that, Uncontrollable environment "Broad performance" has a major impact toward Controllable marketing "Task performance".

(Referring to appendix 3) we can identify that, Madame Tussaud's is within the top 5 attraction in the UK 2000. This indicate that this organisation is facing a huge competition from the other three

(Millennium Dome, London Eyes and Alton Tower).

Madame Tussaud's went through different unexpected/uncontrollable marketing environment.

(Refer to appendix )

Section Four

4.1 Promotional Plan

Nevertheless, these uncontrollable impacts can also lead to many threats. Competition from other attraction, which may lead to failure of the organisation achieving their opportunities.

As it mentioned before, SWOT analysis, knowing the organisation current a potential market and environmental concern, they are all essential to be identified in order for the organisation to achieve Promotional Plan to attract consumer to buy their product/services and, to identify how effective the promotion is in meeting its objectives.

Adcock, Halborg and Ross (2001), identifies Promotional Plan as:

"Promotional planning can be viewed as a sequential process aimed at deciding the strategies and necessary action plan to achieve communication objectives".

According to Adcock, Halborg and Ross (2001), there are four critical elements within promotional/communication mix, they are;

(Non-personal) (Personal)

Advertising Personal Selling

Publicity

Sale Promotion

Many organisations many uses one or more of those elements for promoting mix.

(Refer to appendix 8), it illustrates the decision flow promotional mix process.

4.2 Objectives of Plan

However, the aim of promotional planning in the long run is not just to inform, but to encourage customers to purchase products/services or, to adopt ideas. Therefore, effective promotional is usually achieved by well researched for tracking sales levels and attitude patterns toward consumers requirements, this means objective must link to the target aimed. This can be achieved by informing, persuading and reinforcing the organisation current and potential target market.

4.3 Promotional Plan within Tussaud's Group

Madame Tussaud's structure of Promotional Planning might be:

* Obtained all the relevant information's regarding of , SWOT analysis, knowing the organisation current an potential market and their environmental concern

* Setting out objectives of how to inform their consumers of their product/services, this can be done through marketing mix for developing the right product to the right consumer at the right price, make it available at the right place, and let customers know about it through promotion. Therefore, Madame Tussuad's might used the stages of conviction models of Adcock, Halborg and Ross (2001)) within their plan (refer to appendix 9)

Madame Tussaud's might use promotional planning, for:

> As a framework guide to their future and leadership

> Decision regarding their product range

> Identifying competitive for long and short terms

> Identifying different markets

> Schedule and co-ordinate marketing and promotional goals

4.4 Marketing Mix

As mentioned before, promotional plan/objectives is been used within organisations for achieving its main goals. Supporting this point, Palmer (2000), Needhan and Dransfield (1994) illustrated diagrams of 'Hierarchy of objectives and strategy', The planning process and The marketing mix process

(Refer to appendix 10)

Middleton (1988) obstructed Marketing Mix definition from Kotler as:

"... 'the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market' (Kotler: 1984:p.68)"

The marketing mix has four elements, usually referred to as the four Ps:

> Product

> Price

> Place

> Promotion

This means, that the marketing mix is essential within any organisation for developing a new product.

4.5 Implementation process of the Marketing Mix within Tussaud's Group

From the Madame Tussaud's student pack, it identifies that, during the period of any product development, they implement seven stages. Within those seven stages, they use two types of research as well as the marketing mix process and promotional plan. Using those processes, it helps them to identify their current and potential consumer's requirement and tries to deliver their consumer expectations.

The stages that are been used within Madame Tussaud's are:

1. What do current visitors think? (Quantitative research)

2. What do potential visitors want to see? (Qualitative research)

3. Marketing brief studios on consumers demands

4. Studios develop concept

5. Further research to test ideas

6. Refine concept

7. Implement ideas

4.6 Distribution

Distribution is often been neglected as an element of the marketing mix, it is crucial to the product success. Middleton (1988) adopts Kotler (1984) definition of distribution, which he also adopts it from Bucklin's (1966) as:

"A set of institutions which performs all of the activities (functions) utilized to move a product and its title from production to consumption"

Without an effective distribution channel, organisation will not be able to compete their product. Therefore distribution is a power weapon of competitive in the success of the organisations.

4.7 Distribution process within Tussaud's Group

As it mentioned before, Madame Tussaud's it is a large organisation within the travel and tourism industry, therefore it face high standard of competitors. However, it uses distribution channel for more awareness of their product national and international.

They mainly deliver the awareness of their product/service through the Internet, as it is global. However, other sources of promoting and awareness of their product is mainly done through Media, in the form of posters at tube stations and bus sides which is mainly concentrated in London. Also they uses sale promotions to drive visitor number off-peak and to communicate the brand to a wider audience, public relations, portraits, business development and Banqueting & Co-operate Entertaining, according to their student pack.

Section Five

5.1 Conclusion/ Recommendation

The report analysed the Marketing structure of one of the largest Tourism Attraction in the UK, Madame Tussaud's. The organisation had many objectives, which has been identified in page 4. One of their major objectives was, to stay London top paying tourist attraction. Therefore, the report analysed their Marketing stregetity in term of their: target, current and potential market; analysis their PEST analysis and their process of promotion in order to aware their product to their consumer by distribution.

All the same, one of their objectives is to attract all types of consumer (different class as seen in appendix 6) an overseas visitors. Therefore, in order for Madame Tussaud's to attract those specific targets, they required to carry out a Promotional Action Plan. (Refer to appendix 11).

On the other hand, they need to improve:

* Their queuing process in term of not making to consumer to wait for a long period to enter the exhibition

* Signs around the exhibition for direction (such as direction for facilities for disabilities segment)

* Having more staff speaking different languages