Case Stuudy

Case Study 2010/11
MBA403: MARKETING MANAGEMENT
ASSIGNMENT 1
CASE STUDY: RAZZLE HOLIDAYS
You are a team of marketing consultants appointed by Razzle Holidays, a family owned package holiday
company based in Cardiff, to explore opportunities for market development and growth. Razzle has already
identified several ways to expand its business base, as outlined below. However, it alsorecognises that within
your research you may identify other market opportunities. If this is so you may prefer to focus on one of these,
in which case you must discuss this with the Marketing Manager first.
It has been agreed that, as a team you, will research and analyse the overall holiday market and RH’s current
performance, then individually further research and devise a marketing plan for oneopportunity each.
Seminar briefings will further outline the requirements of these two stages.
The following summarises what you have already found out about the company and its markets.
Razzle Holiday (RH) grew from the Thomas Travel (TT), a private limited company set up in 1951 by Trevor
Thomas as a traditional travel agency offering travel tickets and coach/train based family package holidaysto
popular resorts such as Llandudno, Aberystwyth, Blackpool, Newquay and Margate. Growing from Trevor’s
one shop in central Cardiff, the business expanded and by 1968 had seven high street branches in Cardiff and
surrounding towns. As a policy, Trevor always ensured that the branches were freehold, with the result that
the business now owns outright a portfolio of prime business sites worthover £5m.
Trevor died in 1970 and the business was taken over by his son Richard. He saw the potential for widening
the product range, in particular by offering overseas packages to the Mediterranean. This was an opportune
decision and, due to the boom in overseas package holidays, led to rapid growth. However, TT still only sold
holidays offered by other operators, such as Thomas Cook, Thomsonetc. Whilst these offered reasonable
margins Richard felt that he could increase profits by putting together his own packages.
So, in 1976 he visited Miguel Cortez, a contact in Spain, who was able to introduce him to hoteliers able to
provide the family accommodation and services he needed. Initially using scheduled flights and buying seats
on other operators’ charters, he was able tosurvive the first few years and build up the business (still trading
as Thomas Travel) into a viable concern. By 1980 he had re-named the package arm of the business to Razzle
Holidays, expanded the number of holidays and resorts and was now big enough to charter his own flights.
Also in 1980 Richard’s only child, Catherine, married Miguel’s son, José and six months later had a son,
named TreforRodriquez Thomas-Cortez, followed 12 months later by a daughter, Bethan Katrina Thomas-
Cortez (in total they had 2 sons and 4 daughters). Richard welcomed José into the family concern where he
used his knowledge of the hotel business and his extensive network of contacts to develop new holiday
packages across Europe and North Africa. However, he also fostered other contacts during his frequentoverseas trips and his many infidelities led to much animosity between Richard and his errant son-in-law.
Despite this, the business thrived and by the 1990s was providing mid/economy priced packages, flying out of
Cardiff, Bristol and Birmingham, to popular Mediterranean destinations and winter skiing resorts. All
packages are fully inclusive (flight, transfers, accommodation, full/half boardmeals), mainly at traditional
beach resorts, using 1-3 star hotels. The customer base mainly comprises families and (relatively fewer)
couples, mainly social groups B/C1/C2, resident in an arc across South Wales, the West Midlands and the
West Country. RH has traditionally enjoyed a good reputation in these markets (a survey in 2003 indicated
that 28% of its holiday-makers have holidayed with...