Transport Company Marketing Plan

Transport Company Marketing PlanWe all told piss use of the work standd by transportation companies. Now we be going to discuss a) transport for London, and b) counterbalance transforming travel. both Companies argon U.Ks Transportation companies.First is the largest UK vilify operator carrying 270m passenger every course of instruction. It operates raceway passenger services and Britains largest muckle operator services. In North America First is the largest provider of student transportation carrying 3 million students every day.London underground ltd. comport over 3 million passenger a day tie 500 trains in the peak hours own 253 stations with over 12,000 staff. London bus network is largest and to the highest degree comprehensive urban transport systems in the world. Each weekday over 6500 scheduled buses carry around 6 million passengers over 700 opposite routes, total of 1.7 billion passengers a year.Now discussing to our two companies Strategy Planning is the man agerial process of creating a backup strategy to obtain a chink between the organisations resources and objectives and evolving trade opportunities.First is the leader in providing reliable, safe, innovative and sustainable transport services. Although First is a global business, it aims to be in its approach. This means that topical anaesthetic issues ar dealt with by the passel live in local area. While in tfl a) Supporting economic development and population growth, b) Enhancing the quality of life for all Londoners, c) Improving the safety and security of all Londoners, d) modify transport opportunities for all Londoners, e) reducing transports contribution to climate change and improving its resilience, and lastly f) delivering for the London 2012 Games and securing a lasting legacy.Before discussing the process of developing sound Business Strategy Plan, it might be pertinent to ask what a business strategy is in the first place. Business strategy, alternatively referr ed to as belligerent strategy or just strategy, refers to taking decisions on the six key areasThe merchandise markets in which the business is to compete.The level of investment.Functional strategies required to compete in the selected product market.Functional strategies required to compete in the selected product Markets.Developing suitable and sustainable agonistic advantages.Allocating resources over several business units.Developing synergies between the different business units.Now we go out discuss the objective of studying the both of Travel governanceAnd pull up post castigate to point out favouring /unfavouring with implementing PESTEL and Porters 5 forces. But before that we would try to focus on implementation of SWOT analysis of both the Organisation.(S)trengths-In UK to run a business would be simple if the director and the managers had to think about what went on inside the business. First travel employs over 1, 35,000 staff end-to-end in UK North America a nd moves more than 2.5 billion passenger a year. For TFL strength already we have discussed. It has a vast experience to the tidy sum of UK, in their day to day life.(W)eaknesses-As we know First Travel deals with only virtually of the local part of UK. In the same way TFL is also dealing only some of the part of UK. Both of the companies cant deal with globally which leads to weak global control over operations.(O)pportunities-Now a days slew are more prices spending conscious so if both of travel companies think globally there are more chances for growing in world(prenominal) Market. In world market both companies can expand their operations and can make good profit resulting in healthy stands in todays competitive market.(T)hreats-TFL nowadays is so success that is why other local competitor are criticising the efficiency of company and they are trying to pull the leg behind. some same is the situation with First Travel. We know both of companies are UK base so the key issu e are same and SWOT analysis allow for be similar.However business planners have also to understand what goes on outdoor(a) the business. Businesses are able to identify external changes that may affect it by carrying out a postage stamp analysis. This is a business tools in which each of the letters in PESTLE describes a type of change that takes place in the external business environment.Many of these external changes may be outside the control of the, like new government legislation. Some changes may present a threat to the business like competitor using new improved technology. kind changes may bring opportunities for example worker from outside country will bring new skills to the employment market. Environmental adjoins such as emissions of smoke causing carbon dioxide. A business must assess what external changes are likely and which it needs to react to or take advantage of. Business planners can then create strategies to help the business respond effectively. We use th e barrier Business Strategy to refer to a plan for a group of related products. First Travel TFL Strategy relates to its transportation plans and takes into account the entire PESTLE factors in its environment.PESTL Analysis(P)olitical Factors-Transport services are the heart of the UK economy which moves to people to school, colleges, job place and basic requirement at home, and businesses. In the year 1980s, the government started to private base bus services in the UK. It believed that al minusculeing private unshakables to compete to run bus services would keep prices low and underwrite companies would try harder to give customers what they wanted. The result has been more efficient, innovative and sustainable bus services.Government operates at two levels -National level and Local level. First Travel believes in providing local solutions, therefore it concentrates on working closely with local government. Same way TFL is operates National level covering whole London trying to cover UK also.A key government policy affecting all transport services relates to the reduction of CO2 emissions, therefor the UK government has halled on an international treaty-the Kyoto Protocol. Countries which sign the agreement intend to the reduce the emission of harmful gases. This can succeed only through partnership with business. A good example of this is the government endeavour to encourage more children to use Bus or Rail services rather than travelling to school by car or other means.First as puff up as TFL both have produced a Climate Change Strategy which shapes every action the company takes. This is a part of deal to Transform Travel It wants to change how people feel about public transport by delivering the highest levels of services and customer satisfaction. This involves recognising its responsibility to reduce CO2 emissions to as low as possible.Tram, bus and rail travel create less(prenominal) pollution than other forms of transport, but there is sti ll room to improve. Key segment of Climate Change includeImproving the fuel efficiency of its vehiclesPurchasing vehicles with greater fuel efficiencyUsing alternative fuels, such as biodieseloperating(a) improvements through driver training and new technology to monitor driver performance.(E)conomic Factors-Businesses need to make money to continue to exist. They do this by listening to customers to ensure they keep their customers and new ones with good services that customers want and need. First Travel changes in demand from customers, for example First responded to increased demand in the Neath valley in Wales working closely with the Neath Port Council to run improved services .Another good example for First travel designed to start special fell services with the student in mind.Londoners want more economical improvement s such as the new London Over ground rail service, further reductions in the numbers of people killed and seriously injured on Londons road as well as the better air quality that the low omission zone will deliver. With more than 10 million journeys made each day on tube and bus alone, TFLs challenge remains improving the level of passenger services while delivering the projects of its 10 bn. Pound Investment Programme.Another economic factor affecting business is taxation. High tax on fuel encourages customers to switch from using cars to more economical nbus and rail transport. Congestion charges in cities like London also encourage drivers to switch to other forms of transport.(S)ocial Factors-Social changes may have a major impact on business-The number of older people in the UK is rising. There are more people with bus passes in this country than ever before. The local authority pays for providing service. Many elderly people prefer to travel by bus because it is convenient and safe.Societys habits and tastes are changing. passel are more aware of the importance of the environment and becoming green consumers. Green consumer p refer goods and services that are environmentally-friendly and which have less impact on the environment. The green consumer, for example prefers to travel by bus or train than by air or in a large car.People are now more mobile and travel more.Following are some Statistics record produced by the Department of Transport pick out some major trends.National Rail use increased, with 1.2 billion passenger journeys made-a rise of 8% on the previous year.Passenger journeys on local buses in UK move up by 4% in the year.Passenger journeys on light rail systems in UK increased by 9%.In London, bus and light rail passenger journey grew by 6% in the year.The average age of the national bus fleet fell from 8.4% to 8.1% years.The market is growing and more people are realising the benefits of a more environmentally-friendly form of transport.(T)echnological Factors Businesses are continually developing new technologies to provide the best solutions for the market place. Intelligent companies f ind out what the most appropriate technologies are for their businesses and use them. This is particularly true in transport.A good example of this is in the provision of buses that lower the floor for the easy entry. These provide better accessibility for disabled and elderly people.TFL has Docklands Light Railways (DLR) which uses an automatic train control system, which is monitored by the permanently staffed control centre located at Poplar. Signalling is base on the Seltrac system, developed by Alcatel (Canada), which uses the latest moving block technology.In other words we can say if the businesses adopt better technology results in a smooth running and making more profit.(L)egal Factors Legal changes that affect business are closely tied up with political ones. Many changes in the law stem government policy. Many of these laws are Europe-wide for example, the standards for transport vehicle emissions. Another requirement is like companies need to buy Carbon Credits. These c redits will permit companies to generate specific quantities of carbon emissions. A new front facing cameras to halt speeding motorists. The brakes are set up on speeding drivers who attempt to avoid penalty points.Now from the above discussion it is possible to see PESTEL factors as threats. However First Travel and TFL both prefer to see them as opportunities. Social trends are creating increasing numbers of passengers seeking comfortable easy to access all types of transport means. Government pressure is supporting(a) more and more individuals to use public transport. Many people are seeking a greener form of transport. A detailed PESTEL analysis helps both the companies to make appropriate plans to rise to the changing environment. Both the businesses are able to move forward with confidence and grow its business.Porters Five Forces-As Porters 5 Forces analysis deals with factors outside an industry that influence the nature of competition within it, the forces inside the indus tries (microenvironment) that influence the way in which firms compete, and so the industrys likely profitability is conducted in Porters 5 forces model. thought the nature of each of these forces gives organisations the necessary insight to enable them to formulate the appropriate strategies to be successful in their market (Thurby, 1998)This analysis can be use with the SWOT analysis of the firms. From the following Diagram of Porter 5 Forces we can get transparency of the analysis.Diagram of Porters 5 ForcesSUPPLIER POWERSupplier parsimonyImportance of volume to supplierDifferentiation of inputsImpact of inputs on cost or differentiation fracture costs of firms in the industryPresence of alternative inputsThreat of forward integrationCost relative to total purchases in industryBARRIERS TO ENTRYAbsolute cost advantagesProprietary learning curve glide slope to inputsGovernment policyEconomies of scaleCapital requirementsBrand identity operatorSwitching costsAccess to distributi onExpected retaliationProprietary productsTHREAT OFSUBSTITUTESSwitching costsBuyer inclination tosubstitutePrice-performancetrade-off of substitutesBUYER POWER negotiate leverageBuyer volumeBuyer informationBrand identityPrice sensitivityThreat of backward integrationProduct differentiationBuyer concentration vs. industrySubstitutes availableBuyers incentivesDEGREE OF RIVALRYExit barriers intentness concentrationFixed costs/Value addedIndustry growthIntermittent overcapacityProduct differencesSwitching costsBrand identityDiversity of rivalsCorporate stakes(Source gstatic.com)Threat of New Entrants The UK Transport is primary loomd by few competitors. In our case study both of i.e. First Travel TFL Both dominate the market though to survive in the market and if they are not better off to the passenger another private company may attack.Barriers to Entrants Both the companies have made a very high barrier for new Entrants so it will be very much difficult for new companiesBargaini ng Power of customer There are more chances of customer to have an alternative mode of transportation.Bargaining power of supplier There are less chances of alternate of transportation but the customer are more price convenience conscious.The merchandise Mix The selected target markets are targeted with a marketing swagger which is a unique blend of product, pricing, distribution and communication strategies, created to produce mutually satisfying exchanges with a target market. Distribution is referred to as place and communication as promotion, thus giving us the four Ps of marketing of the marketing mix Product, Place, Price, and Promotion. Over the years several more Ps have got added to the marketing mix such as Positioning, Packaging, People and Process. The strategies for each of components cannot be decided upon independently. The strategies must complement each other and blend together very well for the marketing plan to be successful. The best promotion strategy and lowest price cannot save a bad product. So also the best product will not sell unless there is an appropriate distribution and communication strategy in place.If we apply the above marketing mix strategy in our both of our companies we can say that it will be very fruitful result.Market Segmentation and Targeting A market segment is a group of individuals or organisations that primarily share homogeneous need as well as other common characteristics such as age, gender, income lifestyles or values. These common variables can run into hundreds and because of shared needs and characteristics, it likely that such individuals will have relatively similar product needs.A marketing plan begins by identifying the various market segments in a given market. The next step is to conduct a segment attractiveness analysis depending on the size, sales potential and competitive factors. The firm now decides selects one or more segments that it chooses to target with its marketing strategy. A funda mental rule of marketing is that If you are not thinking of your marketing in terms of target markets, you are thinking nothing.Conclusion In a nutshell we can say Business strategies are the basis of all marketing decisions and strategies of the firms. The finis of all business strategy is to achieve long term profitability and Sustainable Growth for the organisation.