MC6003 – DIRECT AND DIGITAL MARKETING
NATIONAL EXPRESS AUDIT
Alexandra MacLeod/10034912
• National Express can trace its roots back to the 1920s:
– Greyhound Motors of Bristol
– National Bus Company
– British E...
• Where are we now:
– Business to Consumer - affordable, reliable, quality coach travel
– E-procurement – services
– E-Ado...
• Value Chain
• Online Value Proposition
– Why buy online rather than through a different channel?
• Offers make it cheape...
• The Numbers:
– 2012 revenue - £255.1 million (2011: £259.1m) 2% decline
• Government cut OAP concession scheme worth £16...
– REACH
– ACT (INTERACT)
DIGITAL MARKETING
EFFECTIVENESS - RACE
196,000 30,250 99
Source: Alexa, 2014
RACE - CONT
CONVERT
LOW BOUNCE RATE, PAGES VIEWS INDICATIVE OF TRANSACTION TAKING
PLACE
ENGAGE
LOYALTY OFFERS – CARDS IMPR...
• VALUE PROPOSITION CHANGED TO COMPETE WITH COMPETITORS
– POSITIONS ITSELF AS QUALITY CLEANER, MORE SPACIOUS THAN
COMPETIT...
• POLITICAL:
– LEGISLATION:
• COOKIES, PRIVACY LAWS, EMAIL MARKETING REGULATIONS – SUCH AS OPT IN
• ECONOMICAL:
– KEEP UP ...
• CUSTOMER SEGMENTS:
– STUDENTS
– RETIRED / OVER 60S
CUSTOMER INSIGHT
Source: National Express, 2014
• DIRECT COMPETITORS
– MEGABUS
– STAGECOACH
• INDIRECT COMPETITORS
– TRAIN S ON SAME ROUTE SUCH AS:
• SOUTH WEST TRAINS
• ...
MEGABUS .VS. NATIONAL EXPRESS
(DIGITAL)
Similarities: Layout design – journey planner, savings deals
Differences: National...
MEGABUS .VS. NATIONAL EXPRESS
(DIGITAL)
• National Express
– Good interactivewebsite
– Lots of information for
customers a...
PORTER’S 5 FORCES
• MARKET LEADERS
– REVENUE AND EXPERIENCE
• CUSTOMER FOCUS:
– STUDENTS
– RETIRED/OVER 60S
• LOST GOVERNMENT FUNDING
• ONLI...
• OAP CONCESSION CUTTING
– ONLINE USE OF OVER 60S?
• TRAINS
– SUBSITUTE PRODUCT
• NEW TARGET MARKET IDENTIFIED
– BUSINESS ...
REFERENCES
• National Express Group, 2013. Annual Report and Accounts 2012.
[Online]
Available at: http://www.nationalexpr...
QUESTIONS?
of 18

National Express Company Audit (2014)

Audit to identify new customer segment for university assignment
Published on: Mar 3, 2016
Published in: Marketing      
Source: www.slideshare.net


Transcripts - National Express Company Audit (2014)

  • 1. MC6003 – DIRECT AND DIGITAL MARKETING NATIONAL EXPRESS AUDIT Alexandra MacLeod/10034912
  • 2. • National Express can trace its roots back to the 1920s: – Greyhound Motors of Bristol – National Bus Company – British Electric Traction Group (BET) • “National Express” brand name used since 1972, official since 1974 • Introduced Rapide - “upmarket services” such as hostesses, refreshments and toilets. • Seat bookings late 70s – revolutionary at the time • 90s brought numerous mergers and acquisitions • 2003 - Flightlink, Jetlink, Speedlink, Express Shuttle, GoByCoach, Airbus – Competing against each other • Brand refresh – upmarket services abandoned • 2012 – celebrated 40 years of serving the British Public’s travel needs • 2014 – over 1000 UK destinations • 2014 – 16 million travellers every year INTRODUCTION TO NATIONAL EXPRESS
  • 3. • Where are we now: – Business to Consumer - affordable, reliable, quality coach travel – E-procurement – services – E-Adoption stages 5 - integrated website • Good information and interaction. • Handles sales transactions – Purpose of current digital channels: • Sell services • Customer services – relationship building – Current benefits of digital channel : • Sell – main sales tool for Nat Express (also uses Post Office and coach ticket offices). Convenience for customer and company – cheaper for both • Serve – customer service tool. FAQs, real time tracker, lots of info . • Save – online sales cheaper, online loyalty cards, • Speak – real time tracker updates, email newsletter, • Sizzle – brand development / added value - SITUATION ANALYSIS
  • 4. • Value Chain • Online Value Proposition – Why buy online rather than through a different channel? • Offers make it cheaper • Convenience for customer • Environmental concerns - paperless with mobile/email tickets • What we do – Affordable quality UK coach travel • What we don’t do – Luxury travel – phased out in early 2000s SITUATION ANALYSIS CONT
  • 5. • The Numbers: – 2012 revenue - £255.1 million (2011: £259.1m) 2% decline • Government cut OAP concession scheme worth £16m to Nat Express • 40% less OAP traveller’s than 2011 – Operating margin was 8.1% (per £1, NE makes 8p) • “The drop in margin, from the withdrawal of the concessionary income, reflects a lower but sustainable level of profitability which is not dependent on material Government support.” (NAT Express ref) – Customer satisfaction – 84% – Market share – 60% INTERNAL AUDIT Source: National Express, 2014
  • 6. – REACH – ACT (INTERACT) DIGITAL MARKETING EFFECTIVENESS - RACE 196,000 30,250 99 Source: Alexa, 2014
  • 7. RACE - CONT CONVERT LOW BOUNCE RATE, PAGES VIEWS INDICATIVE OF TRANSACTION TAKING PLACE ENGAGE LOYALTY OFFERS – CARDS IMPROVE SOCIAL MEDIA Source: National Express, 2014
  • 8. • VALUE PROPOSITION CHANGED TO COMPETE WITH COMPETITORS – POSITIONS ITSELF AS QUALITY CLEANER, MORE SPACIOUS THAN COMPETITORS BUT WITH SAME CHEAP PRICES • MEGABUS NOW OFFER ‘GOLD’ SERVICE – SIMILAR TO RAPIDE SERVICE STRATEGIC ISSUES
  • 9. • POLITICAL: – LEGISLATION: • COOKIES, PRIVACY LAWS, EMAIL MARKETING REGULATIONS – SUCH AS OPT IN • ECONOMICAL: – KEEP UP WITH COMPETITORS PRICES • EASILY ADVERTISE PRICES AND SALES ONLINE • SOCIOCULTURAL: – Lifesytle trends: • USERS VERY LIKELY TO BE BUYING ONLINE - EITHER VIA COMPUTER/TABLET OR MOBILE – LINKS FROM OTHER WEBSITES TO NATIONAL EXPRESS • SOCIAL MEDIA – PART OF LIFE • TECHNOLOGICAL: – NO MOBILE APP • CUSTOMER SEGMENT UNIVERSITY STUDENTS - HAVE SMART PHONES – MORE CONVENIENT – CONVERT SALES MACRO ENVIRONMENT ANALYSIS – DIGITAL MARKETING STRATEGY
  • 10. • CUSTOMER SEGMENTS: – STUDENTS – RETIRED / OVER 60S CUSTOMER INSIGHT Source: National Express, 2014
  • 11. • DIRECT COMPETITORS – MEGABUS – STAGECOACH • INDIRECT COMPETITORS – TRAIN S ON SAME ROUTE SUCH AS: • SOUTH WEST TRAINS • VIRGIN RAIL COMPETITORS - £255.1 million - Operating margin was 8.1% (per £1, NE makes 8p) Source: Megabus, 2014
  • 12. MEGABUS .VS. NATIONAL EXPRESS (DIGITAL) Similarities: Layout design – journey planner, savings deals Differences: National Express sections easy to find on first page Megabus (UK) National Express Facebook: NO UK FACEBOOK PRESENCE Twitter: 6,186 Tumblr: Presence (numbers not available) Source: Megabus, 2014; National Express, 2014
  • 13. MEGABUS .VS. NATIONAL EXPRESS (DIGITAL) • National Express – Good interactivewebsite – Lots of information for customers as well as sales – Easy to navigate • Megabus – Basic website design – Functional (sells tickets) rather than customer focused information – Difficult to find information Source: Alexa, 2014
  • 14. PORTER’S 5 FORCES
  • 15. • MARKET LEADERS – REVENUE AND EXPERIENCE • CUSTOMER FOCUS: – STUDENTS – RETIRED/OVER 60S • LOST GOVERNMENT FUNDING • ONLINE PRESENCE – BETTER THAN COMPETITORS – GOOD SOCIAL PRESENCE – COULD BE IMPROVED FURTHER • STRATEGIC ISSUES • PEST – TECHNOLOGY TO BE UPDATED • COMPETITORS – MEGABUS – TRAIN COMPANIES • SUBSTITUTE PRODUCT AUDIT EVALUATION
  • 16. • OAP CONCESSION CUTTING – ONLINE USE OF OVER 60S? • TRAINS – SUBSITUTE PRODUCT • NEW TARGET MARKET IDENTIFIED – BUSINESS TRAVELLERS – NOT CURRENTLY TARKETING THIS MARKET – WILL TAKE TIME TO PUSH SERVICES IN THIS NEW MARKET • CHOSEN SCENARIO: TO ATTRACT ONLINE SALES FROM A NEW MARKET WITH A 12 MONTH PLAN GROWTH STRATEGY: CONCLUSION
  • 17. REFERENCES • National Express Group, 2013. Annual Report and Accounts 2012. [Online] Available at: http://www.nationalexpressgroup.com/ar2012/ [Accessed 10 01 2014]. • National Express, 2012. About Us: History: Coach. [Online] Available at: http://www.nationalexpressgroup.com/aboutus/historycoach.aspx [Accessed 11 01 2014]. • National Express, 2013. National Express - Our Markets. [Online] Available at: http://www.nationalexpressgroup.com/aboutus/ourmarkets.aspx [Accessed 10 01 2014]. • National Express, 2014. National Express. [Online] Available at: http://www.nationalexpress.com/home.aspx [Accessed 10 01 2014]. • Tech Crunch , 2013. 73% Of U.S. Adults Use Social Networks, Pinterest Passes Twitter In Popularity, Facebook Stays On Top. [Online] Available at: http://techcrunch.com/2013/12/30/pew-social- networking/ [Accessed 11 01 2014]. • • Alexa, 2014. Site Info: Megabus.UK.Com. [Online] Available at: http://www.alexa.com/siteinfo/megabus.com [Accessed 12 01 2014]. • Alexa, 2014. Site Info: NationalExpress.com. [Online] Available at: http://www.alexa.com/siteinfo/nationalexpress.com [Accessed 10 01 2014]. • Chaffey, D., 2012. Digital Marketing: Strategy Implementation and Practice. 5th ed. Harlow: Pearson Education . • Chaffey, D., 2013. The RACE Digital Marketing Planning Framework. [Online] Available at: http://www.smartinsights.com/digital- marketing-strategy/race-a-practical-framework-to-improve- your-digital-marketing/ [Accessed 10 01 2014]. • Information Commissioner's Office , 2012. Marketing and Information Rights. [Online] Available at: http://www.ico.org.uk/for_organisations/sector_guides/mark eting [Accessed 12 01 2014]. • Megabus, 2014. Megabus UK. [Online] Available at: https://uk.megabus.com/ [Accessed 10 01 2014]. • Mind Tools, 2013. Porter's Five Forces: Assessing the Balance of Power in a Business Situation - See more at: http://www.mindtools.com/pages/article/newTMC_08.htm#s thash.cZlvPn8K.dpuf. [Online] Available at: http://www.mindtools.com/pages/article/newTMC_08.htm [Accessed 11 01 2014].
  • 18. QUESTIONS?

Related Documents