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2010

Virgin Trains

Brandon Gransaull
Student Number: 000626039

Contents
Executive Summary ..................................................................... 3 S.W.O.T. Analysis ........................................................................... 4 Key Issues ...................................................................................... 17 Acquisition Objectives ............................................................. 20 Acquisition Strategies .............................................................. 21 Acquisition Operating Plan .................................................... 28 E-CRM Objectives ....................................................................... 29 E-CRM Strategy ........................................................................... 31 e-CRM Operational Plan .......................................................... 42 BUDGET 2009 .............................................................................. 43 BUDGET 2010 .............................................................................. 44 BUDGET 2011 .............................................................................. 44 References ..................................................................................... 45

E-CRM Project

Virgin Trains

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Executive Summary
Virgin Trains is one of the most experienced trains operating company in the Britain having been around for over twelve years. Virgin Trains holds firm to the belief that rail has a clear role to play in sustainable transport, and want to be in the forefront of this service provision. We are also aware of the impact on the environment from carbon emissions to air quality, and have taken the stance to make rail travel affordable and secure in light of the threats of terrorism. We intend to meet these objectives by challenging the existing perceptions and working at solving all existing problems and delivering innovative solutions to the travelling public. We are committed to embracing and implementing policies and strategies aimed at ensuring sustainable development in rail including the refurbishing and remodelling of stations to enhance the Customer experience and consequently, encourage the use of rail as the preferred means of transportation. We intend to engage and empower our employees to deliver on our safety and security targets and to commit to community work at home and abroad as a means of visible demonstrations of our corporate social responsibility. It is our intention to utilise available technology to reduce our contributions to pollution while increasing our energy efficiency and making our contribution to a cleaner, safer travelling environment. We will also plan, strategise and implement activities aimed at developing a lasting relationship between our various publics through the use of the dynamic electronic infrastructure available to us.

E-CRM Project

Virgin Trains

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S.W.O.T. Analysis
Strengths
Market Experience: Virgin Trains have been in operation since 1997 and is seen as one of the major player in the long distance rail industry in UK. Management Experience: The management hierarchy in filled by individuals with the experience and knowledge to propel the company forward. Highly Skilled workforce: Virgin Trains operates with stringent recruitment policies and a commitment to skills improvement through Training. Commitment to High Quality Service through: o a reliable and punctual journey o clean and safe trains and stations o a Customer Service team member onboard each train to be available to provide assistance if required o a refreshment service on most trains o a seat if reserved in advance o a continuous drive on performance improvement in terms of punctuality and overall train service Technological Advancement: o Wi-Fi availability on all trains o Ticket Reservation System whereby passengers tickets are delivered in 5 days Price Efficiency: rated #1 for value for money Good Connections: Virgin Train a direct relationship to other forms of public transport (i.e. buses and coaches) Customer Service: o Implementation of a functional Customer Loyalty System o Focus on customer comfort during the train ride o Coach service for both First Class and Standard passengers Strong Global Brand: The Virgin brand name is known globally for its commitment to Customer Service.

Weaknesses
Public Performance: Virgin Train performance has been seen to be lowered than that of its competitors within the industry. o Customer complaints rate has been the highest for the past 6 quarters o Response time to customers are very low o Mayor Complaint: Train performance Train Information: Delays, cancellations and re-routings are lowly rated in comparison to its TOC competitors.

E-CRM Project

Virgin Trains

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Opportunities
Increased Consumer Base: as of 2009, more passengers are choosing to travel by rail than at time in sixty years. Improvement in Train Service, in terms of: o Space for luggage o Toilets facilities o Attitude and helpfulness of train staff o The look and feel of rail stations that house Virgin Trains o Security and informative staff at these stations o Punctuality Improvement in the system of dealing with delays and the communication of these delays. Improvement of the Ticket Purchasing facilities

Threats
Major Competition: National Express East Coast Aging Rail Infrastructure The need to meet the demand for increased capacity and increased safety whilst satisfying the commercial pressure Environmental energy problems: finding different sources of sustainable energy to fuel the trains Security against terrorist threats: as a result of the incidents of 2008, there is a greater need for protection in trains and train stations.

E-CRM Project

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Customer Segmentation
Transportation Demographics Within London

Table 1
Source :London Travel Demand Survey Supplement March 2007

The above table shows whether people in each group use a particular mode of transport more or less per person than the average for all Londoners. For example, while men and women make the same average numbers of trips in total, men travel slightly more than women by private transport (index 102 compared to 98) and significantly more by Underground (index 119) and rail (index 127). On the other hand, women make more use of buses (index 113 compared to 87).

Rail Use by Gender and Age


A limited amount of demographic information about the nature of passengers was collected in the survey. Approximately 56% of passengers surveyed were male and 44% female. The chart also shows that male passengers were in general older than female passengers. 59% of female passengers were under 35 years of age compared to only 45% of males.

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Source: London Area Travel Survey February 2005

Time of Travel
A majority of rail travel occurs in the morning and evening peaks. The chart below shows the number of passengers boarding trains through the course of the day

Source: London Area Travel Survey February 2005

In summary, this graph shows that: 35% of journeys began between 6:30 and 10:00; 37% of journeys between 16:00 and 20:00; and 28% of journeys outside these peak periods.

E-CRM Project

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Journey frequency and purpose

Source: London Travel Demand Survey Supplement March 2007

The weekday travel profile shows the expected pattern - work and education dominate the AM and PM peaks, shopping and personal business in the inter peak, and leisure in the evening. During the traditional peak hour of 08.00 09.00 it is interesting to note that education related trips (50%) account for a far higher proportion than commuting (30%) The relatively high volume of evening traffic includes the substantial growth seen in bus and tube trips over the last decade

Source: London Travel Demand Survey Supplement March 2007

Though the overall volume of trips on a Saturday is only slightly lower than on a weekday, the peaks disappear and travel is even throughout the day. Shopping/personal business and leisure dominate the journey purposes.

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Source: London Travel Demand Survey Supplement March 2007

The overall volume of travel on a Sunday is just under two thirds of that made on other days of the week. The majority of trips occur in the six hours from 10.00 am to 3.00 pm, mirroring the reduced shop opening hours.

Journey Purpose: 2005


A simplification of the journey purpose collected in the survey was used to group rail journeys into one of four categories: commuting to work, commuting from work, business and leisure. Commuting also includes education journeys, for example students travelling to or from school or college

Source: London Area Travel Survey February 2005

Commuting journeys were split evenly between those travelling to work and those travelling home from work. Business journeys represented 12% of rail travel in the area covered by the survey. Leisure journeys such as shopping trips, holiday journeys, trips to recreation and sporting events and visiting family and friends accounted for the remaining 20%.

Journey Purpose: 2010


Based on a quantitative survey put on by the ATOC (Association of Train Operating Companies) respondents that were interviewed were using the rail mostly for leisure (38%) and shopping (34%) purposes. Personal business (10%), employers business (8%) and commuting (8%) trips were on the lower end of the spectrum.
E-CRM Project Virgin Trains Page 9

Purpose of Rail Travel


2% 8% 8% 10% 38% Leisure Shopping Personal Business Employer's Business 34% Commuting Miscellaneous

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

Journey Purpose by Gender

Source: London Area Travel Survey February 2005

The results of the study conducted on the purpose of the rail travel revealed that most females used the rail network for leisure while men were more inclined to use the rail for business travel. The uses of commuting to and from home also ranked highly as reasons for the use of rail

Reasons for Rail Travel


Current figures indicate through the survey put on by the ATOC (Association of Train Operating Companies) that reasons for the current mode of travel was due to its convenience, mentioned by 60%. Cost (17%) and speed (6%) were the other close matters of importance. All other reasons presented made up for more than 3%.

E-CRM Project

Virgin Trains

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Access to and egress from rail stations


The main proposed access modes to the local station for the hypothetical rail journey were car, (36%), walk (27%), bus (22%) and taxi (13%)

Quantitative respondents proposed access mode for rail journey

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

Source: London Area Travel Survey February 2005

The egress mode from rail was predominantly walking (49%). Taxi was mentioned by 15%, bus by 14%, car by 12% and Underground/metro/light rail by 9%. (Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies)
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E-CRM Project

Source: London Area Travel Survey February 2005

Information Sources used to plan a journey

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

The results of the survey conducted to determine through which means are interested persons obtaining the needed travel information can be stated as follows: Over two thirds (69%) of respondents did not use any pre-trip information for their non-rail trip because the journey was familiar. However, nearly four out of five respondents (79%) would seek information when travelling by rail. This implies

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that information provision may be a barrier to using rail as it is an additional step in making the journey that normally would not be required. When questioned about what information sources they would use for their hypothetical rail journey, about a fifth said they would not use any information source and just turn up at the station. The remaining four fifths would use a wide range of sources with the Internet mentioned around four times more often than the phone.

Barriers to using Rail

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

The results of the survey revealed that the top five barriers to using rail were: cost of rail travel (61% said it was important) total time taken for the door-to-door journey (49% important) frequency of trains (44% important) delays and cancellations (42% important) having to change trains (42% important).

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Satisfaction with national rail travel: Spring 2001 to Spring 2009, Great Britain

According to the National Passenger Survey, in Spring 2009, 81 per cent of passengers were satisfied with their journey that day, compared with 80 per cent in Spring 2008 and 69 per cent in Spring 2001. Passenger satisfaction with the levels of punctuality, provision of information and train frequency have all increased since 2001 and are currently running at around 75 per cent to 80 per cent. However, the level of passenger satisfaction with the value for money of their journey remains at a significantly lower level and was 40 per cent in Spring 2009.

Improvements needed (Customer Voiced)

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

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Virgin Trains

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Improvement that could be made to encourage rail travel

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

Source: Integrated Transport Perception and Reality February 2010 Association of Train Operating Companies

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Share of the UK Rail Market (%)


6.8 10.8 15.2 17.3 3.2 2.3 24.1 First Group National Express Group Go Ahead 20.3 Stagecoach Group Virgin Rail Group Arriva SercoNS

The Virgin Rail group is in fifth position overall and consequently, has a lot of ground to cover if it is to achieve the position of market leader.

E-CRM Project

Virgin Trains

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Key Issues
The main issues in the introduction of e-CRM are listed below:

Determine the manner in which e-CRM can be used to impact on profitability Ensure that e-CRM is developed and implemented as an integrated part of our customer management strategy Ensure that the relevant information regarding the e-CRM strategies, tactics, the usability and benefits reach the target segment Review, restructure and implement the appropriate organizational structures to provide for the new ways of managing customers Identify, evaluate and implement the most suitable IT infrastructure and systems to provide the most effective and efficient methods of obtaining, analysing and customer needs and perceptions as a forerunner to providing solutions

In order to ensure the success of the e-CRM initiative, an appropriate communication plan is essential. For a well planned and executed communication plan to be introduced the key issues which must be considered are as follows: Audience: The Audience is subdivided into current and potential Customers. From the segmentation, the main focus of our communication plan will be the 25 44 year old group since they represent a large proportion of the travelling public. This will include both external and internal customers (employees). Consequently, internal and external communication methods must be applied Some focus on changing the ethnic mix of rail users must be done to increase the use of rail by the non-white population We will need to encourage more female travelers and extend the travel reason beyond just leisure. Within this group, attention will be placed on the computer literate portion as we move to retain current customers and acquire potential customers through the use of the Internet and other Information technology enabled services. Reason: The reason for the communication plan is to ensure that the relative advantages and benefits of using the services of Virgin trains are adequately communicated to the audience. It is also important to communicate the various actions which have been taken to improve the service in the areas which have been identified by the surveys taken of customer opinion.

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Virgin Trains

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It is through the use of the various off-line and on-line methods that the reason for our communication will be demonstrated Increased net revenues, Customer satisfaction leading to brand loyalty are the expected outcomes of the communication plan and by extension the eCRM strategy

Event: Based on the media habits of the audience, variations of both off-line and online methods will be used to reach them This will include above the line and below the line methods An integrated approach will be used where both internal and external communication strategies will be utilized as well as combinations of all promotional methods available for use. However, there is likely to be a predominance of attention given to an IT solution as this is expected to provide the most flexible avenue to execute the e-CRM initiative Responsibility: A cross-functional team headed by the Marketing Manager will be established to oversee the implementation process His team will comprise members from Marketing, Information Technology, Finance and all functional departments. The structure will be fashioned against the Matrix Organization archetype The entire Organisation will have different roles to play from a functional basis but each will bear varying levels of responsibility towards the adoption of e-CRM Medium: In each case, the profile of each segment to be targeted must be known and specifically their media habits On line The use of email, web advertising, website will be used to effect the many avenues through which Virgin Trains can connect to with our target audience Offline The use of traditional media in the form of newspaper, promotional events, and posters will be used to further generate the essence of the communication the company is trying to create with our target audience. Timing: The creation of detailed timelines that structure the best times for launch and utilization of the many forms of communication (both online and offline) ideas throughout the fiscal years to maximize the impact of our acquisition and retention strategies. The timing and/or frequency of the elements of the communication plan will be dependent on the activity level of the target segment and the time of use of the various media
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E-CRM Project

Content: The design of the message to communicate the organisations unique selling proposition will be established. It will also focus on the positioning attributes chosen to influence existing and potential customers to utilize the services of the organization. The use of celebrities and testimonials of satisfied customers will be used as it reinforces the usability of the service The design of the messages will be both informative and persuasive. Informative messages will inform the public of the Organisation and the steps which are being undertaken to improve the service Persuasive messages will focus on changing the attitudes of the public toward the use of the rail and will be used in the acquisition of customers.

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Virgin Trains

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Acquisition Objectives
Acquisition in the context of Customer Relationship marketing refers to the ability of the organisation to attract and retain new customers. Consequently, the major objectives which are to be realised can be expressed in the areas of four sub-categories viz. increasing sales, customer benefits, reducing costs and competitive advantage. 1. To increase Virgin Trains share of the rail market by 5 % over the next two years through the use of: Customer retention strategies Customer Acquisition strategies Increasing the frequency of use of rail travel To improve the current Customer satisfaction levels by 7% over the next two years through: Addressing the concerns raised by our customers Improvement in the reliability of the trains Improvement in the information provided about the schedule of travel To reduce the cost associated with the provision of train services by 3 % over the next two years through Improving the performance efficiency Reviewing the Organisational structure required to deliver services at an optimal level Application of Business Process Re-engineering in order to establish more cost effective and efficient processes To introduce and develop measures which will differentiate the services in the market and give the Organisation a competitive advantage through: Improving the means of communication with present and future customers Introduce efficient ticketing measures The improvement of the aesthetics of the rail stations

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Acquisition Strategies
1.

Customer Retention and Acquisition Strategies


The first step is the identification and assessment of the customers, both current and future, with an intention to ensure that their unmet needs are satisfied. The need to attract, acquire, leverage, and retain customers is still of primary concern to most businesses. Revenue growth through customer acquisition and retention remains a major requirement for competing successfully.

The above process flow demonstrates the strategy which will be used to identify and implement suitable strategies based on customer retention and acquisition. The need identification will identified through our interaction with the customers using appropriate marketing research methods. This interaction will determine and identify the need which must be addressed. The search for information will consist of exploring the availability of suitable mechanism including software and hardware which enable the needs identified in the first step to be met. Each mechanism will be evaluated for suitability and cost-effectiveness and will undergo a rigorous examination to understand the requirements for successful implementation. It will also be necessary to assess completely the organization ability to implement these measures to identify whether there are any outsourcing requirements.
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E-CRM Project

Decisions must then be taken regarding the acquisition of the identified mechanisms whether it is full purchase or part purchase and to what extent the supplier will be involved in the implementation process etc. The Implementation of the processes/mechanisms/software will begin with the introduction of suitable cross-functional teams and the determination of the various responsibilities and authorities which will be assigned to each individual involved in the process. An operating plan detailing all aspects of the implementation with suitable timelines will be established as a means of controlling the project and ensuring successful implementation. The post purchase action will be the monitoring of the results of the implementation against the specific objective of increasing the market share of the organization. The traffic increase in terms of rail use will be monitored and compare against the current numbers. The systems which will be developed can be expressed as below. The systems which are expected to directly increase the market share will be developed and implemented in the Functional and product systems area. These systems will be a direct result of the customer focused systems which enable the unmet needs to be identified and once solutions have been implemented the customer facing systems will be employed to persuade, remind and reassure customers of the services.

Source: www.ausweb.scu.edu.au

This system interaction will operate on a continuous basis to ensure that relevant information regarding the perception and satisfaction of rail users will be brought to the attention of the organization in a timely and accurate fashion.
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E-CRM Project

After these systems have been identified and implemented, the communication between the organization and its current and potential customers must be established. In this regard, both offline and online methods will be used as well as above and below the line strategies.

2.

Increasing the frequency of use of rail travel


Introduce a system to provide accurate and complete information about all travel alternatives in a simple package and enable customers to purchase a single ticket for the entire trip (including local public transport). This will necessitate collaborative decision between our organization and the providers of other local transportation. Provide discounted fares for travel on weekends with family rates intended to attract entire families (four or more) to use the service during slower periods. Joint venture discussions will be started to enable the organization to offer discounted travel rates if evidence is brought of a visit to a theme park or other social activity. Discounted rates will be available for weekly or monthly season ticket purchases in both directions. Employ promotional activities aimed at increasing the ethnic mix of travelers by ensuring that the promotions are well balanced ethnically

3.

Improving the Communications between Virgin and Customers

This acquisition strategy will be broken down into three main sub headings which will allow Virgin Trains to move forward in engaging customers. A suitable tagline will be developed encompassing the positioning attributes of the organization. This tagline will be used in all communication methods whether online or offline. The following are the three main subheadings which can be used to express the strategy to be used. Processes: This relates to the utilization of various methods of communication available to the Virgin Group. The communication methods fall into two broad categories: o Online: this area of activity will enable customers to communicate in both one way and two way methodology. It will also facilitate to a large extent, a high degree of personalization while customizing some areas for general use. Website Development: The website will be the main vehicle through which contact with the modern thinking customer can be made. We will provide the facilities for customers using the make enquiries, book travel, search destinations etc Blogs: Customers will be able to create journals and topic discussions between each other about the quality of service of Virgin Trains. This
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E-CRM Project

concept can be extended to include our own customer service representative and call center personnel. They will direct queries for which they do not have the answers to the area experts so as to ensure that all queries are given a prompt response within 48 hours of receipt Forums: Marketing officials and management can post topics of discussion so that customers can comment and provide necessary feedback to fuel a constant goal to customer satisfaction. Customers will be encouraged to speak openly about the service. Our actions based on this communication must be geared to demonstrating the seriousness of the medium. Advertisement: Through the use of social networking sites and search engines (such as Facebook, Twitter and Google), we will be able to provide consistency in our advertising. We will be able to generate buzz through fan pages (Facebook), ongoing discussions (Twitter), banner ads (Google) and search optimization (Google). E-mail: We will use the email capability to address customers directly. Using this medium, we will be able to communicate with our existing customers to advise of any special offers, future developments, ticketing options etc. We can also use this facility to gain insight into customer perception through the use of market research methods Video Sharing: Posting videos about our trains can help us to connect with a particular age range. Videos highlighting the many features and services offer in and out of the train can be shared around to create a buzz among those that partake in such media. Documentaries and interviews about Virgin Trains and its owner Sir Richard Branson can help audiences understand the dynamics of what is being offered. YouTube can be fully utilized to showcase these videos Online Partnerships: creating linkages to companies throughout the world can help to bolster market share. Partnering with airline companies (American Airlines and Caribbean Airlines), travel websites (such as Expedia) and tourism boards of different countries can help to create an awareness globally of the services that are offered when travelling to the UK. The online mechanism which are to be used must be fully integrated with the other communication methods and with the organizational structure and provide the means to obtain the much needed feedback as to the effectiveness of the initiatives. The blogs, forums and advertisements will all be managed internally by each customer interfacing department thus ensuring that all possible enquiries are attended to in a timely fashion.

o Offline: this forms the basis for the traditional methods which can be used to further encourage potential customers to come to the Virgin Family of trains. Some of these methods are as follows: Hoardings: the strategic placement of billboards throughout the UK in town, cities, train stations and commercial businesses can serve to
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increase the awareness of the Virgin Trains presence in the rail market and also the services that come together with this brand of rail. Advertisement: this will range in all forms of offline media. Ads will be run in popular magazines, newspaper, radio and flyers. This will create a firm everyday thought of Virgin Trains in the minds of the public. Present and potential customers will be informed of the many services and amenities on hand at Virgin Trains. Promotions: offers and deals for joining the Virgin Trains family will be on hand for first time travelers as to provide an impetus for subsequent travels after. Incentives: this gives the customer added value for using Virgin Trains for his/her travel. This acts as a driver for continued participation in the experience and service of Virgin Trains. In this regard, the use of loyalty schemes will engender greater use of the services provided.

People: This involves creating the organizational structures which will be use to carry the processes set out by Virgin Trains. It is critical to the success of the initiative to ensure that the personnel of Virgin Trains are provided with the tools to make these processes a reality. These tools are as follows: o Training: this must be provided to all staff that are required to develop, maintain and mediate all the online and offline processes that will take place for the acquisition activities. o Collaboration: this has to take place throughout the Virgin Trains business unit to ensure that effective and efficient services will be provided in every department within the organisation. o Teamwork: all functional units should work as a unit as to ensure completeness and fulfillment of every objective across the organizational unit. o Customer Interaction: Our personnel must be prepared to engage customers on a sustained basis and be willing to go the extra mile to ensure their satisfaction. They must be efficient, honest and above all knowledgeable about the facilities as well as the customers expectation. Technology: This involves the choice of technology platform best suited to reach the target audiences with the messages necessary to influence their perception and attitudes towards the Organisation. The chosen platform must be aligned with the companys business process strategy and goals, to ensure delivery of the correct data to the correct functional units with an ease of use that facilitates informed decision making. The choice of technology platforms include: o Internet o E-CRM Databases o Collaboration Software

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4.

Focus on Customers and Customer Relationships

There are three basic steps involved in establishing effective customer relationship management: 1. Capture customer information 2. Build a customer database 3. Create personalised communication and services Capturing Customer Information Marketing Research will be engaged to capture information about the users of the rail network. The use of the web-based capabilities to capture persons making bookings will be engaged to obtain some of their basic demographics Questionnaires at the point of purchase and also while on the journey will be utilised to obtain some more detailed information since while commuters are on the train, more time is available for a more specific and longer questionnaire. A small incentive will be given to encourage participants to complete the form. This may take the form of a Virgin Trains pen, mouse pad or perhaps, a free ride. Some information will be obtained using secondary (desk) research methods which will enable travel trends to be detected. o This information will be used to: a. Focus on the lifetime value of a customer over short-term profitable transactions: Customers will purchase your product/services repeatedly in their buying lifetimes. We will focus on evaluating the value customer segments bring to our company over time and this knowledge will help optimize the marketing spend invested in the relationship. b. Focus on customer loyalty over customer satisfaction: Customer satisfaction does not necessarily mean that your customer is loyal. In fact, even very satisfied customers will quickly switch to your competitor if his offer is enticing enough. In this regard, the use of Virgin Trains frequent traveller miles will result in increased travel. The programme will operate in a similar way to other miles loyalty schemes where travel volume can result in free travel, upgrades etc. The attraction of various rewards for regular travel will act as an enticement for repeat business as well as encouraging new customers to avail themselves of the offers which are available. c. Focus on customer retention over customer acquisition: Research has revealed that 80% of revenues come from existing customers, and 20% comes from new customers. Since the cost of acquiring new customers is significantly higher than the cost of keeping existing customers, it makes sense to focus on customer retention over acquisition. It is, however, essential that a balance between gaining new customers and keeping existing customers be obtained.

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Building a Customer Database The data which is obtained through the mechanisms identified above must be stored and made available in the form of a database. This facilitates the analysis and subsequent profiling of customers to act as the main source of information leading to: Improved Lead Generation Improved promotional methods Web site creation and development Search Engine optimization Improved revenue generation The customer database will be tied to the online purchasing of tickets directly. Each customer utilising the system will be given a unique customer number from which purchase history will be obtained. The database entry system will also be fed from the application for the customer loyalty cards. The database system will allow customers use their credit cards and other electronic forms of payment to obtain the tickets they need for their travel. Creating Personalised Communication and systems The database will provide the input for the use of personalised mail either through the traditional means or through the use of electronic means. Persons using the website or accessing their account will be addressed using their first names. Persons will be given individual user names and password to allow them the ability to personalise their accounts Customers will have access to view the history of their journeys and their corresponding expenditure They will be able to use the system to chart their journey and also book travel with other agencies with whom we will pursue a collaborative agreement.

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Acquisition Operating Plan

E-CRM Objectives
E-CRM can be expressed as CRM-database access via the Web. It means Intranet access for internal users, extranet access for business partners and customers and of course, Internet access for the market at large. Complementary to this is the fact that, E-CRM enables new marketing opportunities e.g. web marketing, web self service, automated response to email requests, remote data warehouse access, integrated marketing channels, etc. This allows customers to request information, access a bulletin board, log a support call, access a selfsupport database, and check progress of an action previously logged all from the comfort of home or through any form of remote access. Consequently the key objectives of our e-CRM system are: Reduce the costs of marketing The use of the website and email to communicate with customers will ultimately lead to the reduction in the cost of marketing. This will be accomplished as more and more persons are driven to use that facility to conduct their business with us. Consequently, our use of offline promotions will be focused on making the website use the preferred choice for rail travellers Improve the accuracy and relevance of development choices The website and its associated functions will allow us to interact directly with customers. This interaction will enable the needs of customers to be expressed and based on the research results enable the organisation to choose the burning issues in the eyes of the customer for immediate attention. Addressing those major concerns on a priority basis and communicating this to current and potential customers via the website and the email component will demonstrate our commitment to serving our customers. Improve Customer satisfaction Our introduction of web ticketing and from the station transfers will reduce the wait time to purchase tickets for travel. Customers will also be able to select their cabin/seat number for greater efficiency in boarding and comfort. This after the customer has been able to view the schedule and choose his departure time and his destination arrival time. The major focal point, however, is that we will endeavour to provide services required and which have been communicated to us. Increase the ratio of browsers to buyers The ease of navigability coupled with the online services will be designed to employ the wow factor to any casual browser. The intention is to create a site which will increase the stickiness and keep visitors to the site amazed at the multiplicity of services, opportunities and satisfied customers of the service. In this regard, we will ensure that we have sufficient testimonial on the site, prominently displayed, to convince potential users that we are the best in what we do

Increase Customer retention. We will provide positive reinforcement in our online and offline promotions and communications. We will engage various celebrities, sports personalities and even the Chief Executive Officer to endorse the claims made by the network. We will provide suitable incentives for retaining loyal customers who will undoubtedly act as opinion leaders in attracting new customers Increase competitiveness through differentiation We will closely monitor the direction chosen by the competition and will innovate sufficiently in the areas where customers are concerned to satisfy their needs. We will also seek to implement measures which are new to the industry. Loyalty schemes, online checkin and the ability to produce a travel statement for business claims are just a few of the areas which will be addressed in attempting to compete through differentiation Increase profitability It is not inconceivable to expect that the measures outlined above will result in the type of traffic volume increase necessary to improve profitability. Coupled with our intention to examine the value chain closely for areas to reduce the cost of providing the travel, there is every reason to expect profitability increase.

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E-CRM Strategy
Develop the Business Architecture

The system architecture will ensure that the appropriate internal systems will be adequate in providing the input collection, data storage, data analysis and reporting of the information gathered. It must also ensure the accurate entry of data from the remote locations by ensuring that there are relationships which will make some fields mandatory and others optional. Pull down menus will also be used to help the users to place the required data in the correct field. A provision must be made for a loyal customer to enter his username/password combination to gain access to his account.

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Website Development
The Website When it comes to web serving technology and CRM, the conversation tends to center around personalization vs. customization. Personalization occurs when web pages are configured by the content provider based on information furnished by, or discerned about, the user (e.g. past purchases). Personalization on the whole tends to take one of 3 forms - profile based, rule based (Broadvision) or analytically based (eHnc uses neural net technology and yet others will combine log file, transaction and customer registration data to build customer profiles). Customization refers to web pages configured by the user (e.g. My Yahoo). While studies have shown that with personalization, commerce can be boosted into the double digits, it's important to understand the delicate balance between guarding consumer privacy and 1:1 marketing Web Site Stickiness Web Stickiness refers to certain tactics that are employed to hold your visitor's attention and not only keep them at your Web Site but keep them coming back. We will move to increase stickiness by adding well-chosen extras or finishing touches. These touches will include features such as site search engine, maps, chat, discussion boards, forums, Internet polls, syndicated content, competitions, affiliate banner ads, surprise and delight benefits and the list goes on. Data Protection and Security Much emphasis must be placed on guaranteeing to the customer the security of his information. In the world where identity theft is rampant, it will be a major contributing factor to the use of the site if we are able to ensure that the personal data which is sent to us via the site will be safe and secure against would be predators. The Data Protection Act 1998 spells out all the do and donts with respect to ensuring the security of data. Consequently, a statement must be placed on the site which will indicate that the information provided will be used for the sole purpose for which it is given

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System Integration
(c) 2000 Michele Bartram, mjb@webpractices.com

(c) 2000 Michele Bartram, mjb@webpractices.com

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

Success in the process of E-CRM involves the interaction of all departments, fully integrated into the system. They will be required to provide inputs and make analyses relevant to their area of expertise. Consequently, each department will be enabled to update the customer files with information which is pertinent to their area of expertise and for the purposes of creating customer profiles; they will be able to access information which was entered by other departments to be able to create a more comprehensive version of the profile. This integrated approach will also provide relevant data in enabling priority choices being made to improve customer satisfaction. It will also allow us to route any enquiry to the specific area where the department/person that is best equipped to deal with it can do so.
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With each communication we want to build and strengthen a rational and emotional relationship between our company, the brand and the user. We do not only want to drive traffic back to our site and encourage purchase, but without a doubt, you want to deliver extraordinary value to your customer. We can do that by ensuring that we Build the users understanding of our company Increase the user's commitment to your company by creating a reason for him/her to want to register and linger on the website Increase repeat visits by delivering consistent and positive experience at every point of interaction

Online Systems
The E-Mail System
The following issues must be addressed when constructing the e-mail system: E-mail - 'From' alias The "From" alias (the sender's name) field is one of the most basic and overlooked areas, and yet it is most often the first thing our customer will see when it shows up in their mailbox. In order to ensure that the customer will open the mail, it is important that the name of the sender (Individual and company) be stated. E-mail - Subject Subject Lines are another area that does not receive the attention they deserve. We will not put more than one offer in a subject Line since confusion will decrease response rates. We will also make sure the subject reflects the offer inside. E-mail - Copy We must decide exactly what the goal of every mailing is and deliver on that goal. We must always provide an escape route: the user should feel in control of the relationship, so always give clear, and easy unsubscribe instructions (one click unsubscribe is ideal). We must remind customers why a message is relevant to them - "You asked us to send you updates on our new products each month The objectives for the e-mail, the organization's brand and tone of voice will dictate how our e-mail reads. Regardless, we must strive for consistency in all these from one e-mail to the next. The offer which is stated in the mail will be stated loud and clear as well as highlighting the benefits to the customer. We will provide easy (multiple ways for the customer to take action - a button or link will let them respond in one click). We will consider the clutter in people's inboxes, think about their web surfing habits and find the right day of the week to mail. December tends to have high e-mail open rates, but response rates tend to be quite low due to the influx of holiday promotional mailings.
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E-mail - Layout We will use appropriate navigation in our e-mails that is consistent with our site's navigation so that we don't force the user to relearn how and where to click. We will use white spaces to set off important designs and informational elements. We will create our designs with small paragraphs in mind, make use of columns and sidebars to break up copy. We will make use of bullets for benefits. We will ensure that any images we use are there for a reason i.e. it should be there if and only if it makes a better sales pitch than the same amount of space in text. We will remain cognizant of the e-mail's file size since messages with smaller delivery sizes have the highest response rates. E-mail - Customer Contact Strategy The best response rates are generally achieved with 1-2 customer contacts per month (biweekly or monthly). We will seek to use a maximum customer contact of once per week. We will take advantage of every opportunity to increase response rates through better sourcing of names, customer segmentation, and by designing messages based upon responder and non-responder classifications. There is further opportunity through these e-mail streams to solicit feedback from customers through one-click replies. "What is the best day of the week to send an email?" That answer is likely to differ from company to company, industry to industry. According to one source, E-ROI in their "Email Marketing Statistics by Day and Time" study for the third quarter of 2007, the best days and times for opens are: o Wednesday followed by Monday and Thursday at 25.4%, 24.7% and 23.6% respectively o Sunday at 20.7% and then Saturday at 18.7% o 11am and 4pm scored the highest marks for read rates and click through rates o 4 p.m. and 10 p.m. are the highest peaks of the day for read and click rates E-Mail Acquisition campaign We will consider the following factors in the development of our e-mail acquisition campaign: 60 percent of e-mail clients can receive HTML messages. So develop campaigns in both content versions (HTML and Text). Keep in mind that approximately 62% of consumers prefer text e-mail advertisements. Many ISP's have developed spam filters which may hinder deliverability. Filters can be circumnavigated by carefully crafting your Subject Lines. Senders who comply with certain permission standards can license the use of a seal for use in their e-mail messages. It's a Good Housekeeping Seal of Approval.

E-CRM Project

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Customer Acquisition & Retention Customer Acquisition - 3rd Party Sources We will use other sources of traffic like third parties and this can be affiliate deals, co-registrations or 3rd party e-mail lists. We will engage co-registrations which will involve using sites that have a registration process associated with them. When a visitor joins a site by registering their name and e-mail address, the visitor will be given an opportunity to opt-into receiving communication from that company. With a co-registration deal, that site would add a second opt-in box for your web site allowing visitors to sign up for your site while signing up for their site. The data collected by the site (usually name, email address and the web site name sourcing the names) is then sent to your company to load into its database. Customer Acquisition - E-mail Address Appending Prior to adding the e-mail address to our database, we will send an e-mail to the individual (recipient) identifying the existing relationship with us, providing notice of our intention to extend the relationship to the e-mail channel and offering the recipient the opportunity to exercise choice regarding the receipt of future e-mail messages from us. These messages will be delivered by either: o the original permission holder or data source o the marketer or o a service provider acting on behalf of the marketer or the original permission holder or data source. Customer Acquisition - Refer a Friend We will use the "refer a friend" initiative and this can take many different forms anywhere from 'refer a friend and get 10% off your next order;' to 'refer a friend and get 5% back on every order your friend places. In order for the initiative to be effective we will the follow these guidelines: o Make sure that everyone who uses your refer a friend form provides a valid email address. o Place that email address into the "From:" line of the email so that it's clear to the recipient who sent it. o Include a note at the bottom of the email saying that it was forwarded using a "refer a friend" feature. You may also want to say something like "in case of abuse, contact abuse at example.com". o One web site includes, in the header of the email, a custom field called XForm-User: where they give the IP address of the person using the form.

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Customer Acquisition - Landing Pages Landing Pages are required to assist the traffic to the site. We will create landing pages for our website and e-mail traffic using the following guidelines Keep it simple - Upon landing at your site, the prospect is going to make 2 critical decisions within the first 3 seconds: o Is this page relevant to me, given the stimuli that were clicked? o Is the site straight forward in terms of access to information? o We will make the content scan-able using the design, copy (write in bullets, if possible), font size, and copy length to influence the prospect's decision as to whether s/he stays or goes. We must ensure that all the answers to these questions are positive in the perception of the customer. Messaging - The landing page doesn't need to sell our product, service, or company. It just needs to sell our offer. Focus your page around a single call to action. Remove all navigation - Our goal is to sell the offer, and the only thing too many additional links can do is reduce your conversions. The only links which should be available are those for the onward travel and this should only pop up after booking our trip. Use graphics sparingly Graphics should only be there if they help reinforce the offer - for no other reason. Say Thank You - After a prospect converts, take them to a "thank you" page. This is important not only from a CRM perspective, but also from a conversion tracking perspective. Test, test, test - Test your landing pages, removing any debate about what works and what doesn't. The most valuable things to test are the headline, graphics, graphic captions, the call to action, copy length/format. Make sure you test at least two landing pages during a campaign.

Customer Retention We will need to focus on managing our customer relationships and not only individual marketing campaigns if we are to maintain the present relationships which exist. For us to be customer focused, we will embrace the following: We will listen to our customer - Companies that don't listen don't succeed. We will create new innovative browsing features We will put the customer first by ensuring that our services can be personalised to suit their requirements We will develop a firm understanding of our customer's purchase behaviour. Viral Marketing Viral marketing plays an important role in developing brand, generating awareness, traffic and advocacy
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Viral marketing is more than a "refer a friend" or "pass the word" initiative We will utilise this technique by following these simple rules o The virus is the medium which encapsulates/embodies the idea o If it is not compelling, it will never be viral o Need a noteworthy online experience to further spread the idea o Create an environment in which the idea can replicate and spread

Blogs and Forums Our website will create the means by which two ways communication can exist. Persons using the blogs will be encouraged to speak their mind on any issue regarding the provision of the service. We will, from within the organisation, create subject areas to solicit responses on key areas of delivery, comfort, punctuality etc to enable us to gauge the perception of the public. We will implement forums and chat rooms where customers can interact directly with the Management of the organisation for information, queries and even to place their suggestions for improved rail service. Both blogs and forums will allow for interaction between all customers and organisational representatives. This will undoubtedly create a close relationship between the organisation and its customers Ticketing and Customer Information Our website will allow customers to obtain a unique log-in combination to gain access to the website. From this access, customers will be able to purchase tickets for any travel option. We will enable customers to purchase ticket for other travel options from the various stations by forging links with these providers. A customer should be able to buy a train ticket for use on Virgin trains and purchase a bus ticket for an onward journey from the same access on our site. Customers will be encouraged to sign up for our loyalty program and consequently, will be issued a unique number which will be used when purchasing tickets on the site. This will allow the accumulated miles at the time of travel to be posted against the customer allowing him to access the various rewards on offer. A customer will also be able to access his area on the site and track his past journeys and options chosen for future travel. For business travellers who are required to claim the cost of travel, a print out of the journey and the total miles can be done for submission to their respective organisations. E-Newsletters We believe that Customer retention is about developing a rational and emotional relationship with our customer. We will consequently, introduce the use of e-newsletters on a monthly basis. The goal is not to commit one way communication with your customer but to deliver something that is anticipated, personal and relevant. We need to ensure that in our communication, we are able to deliver fresh content and create extraordinary value to each recipient.

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Offline Website Promotion


Promoting your website offline is just as important as an online marketing campaign. There are still a lot of potential customers who dont know how to use the internet effectively. In order to reach these customers, and many others, you must implement an offline promotional campaign. Youre URL or website address is obviously the key here. The more exposure your URL receives the more traffic you will send to your website. Company Documentation We will adjust all our Company documentation to ensure that our URL becomes an essential addition to all our outlay. Our Letter headed paper, compliments slips, business cards, invoices, etc will all bare our URL. We will print it on your envelopes since there are many persons who see the envelopes. We will also print it prominently on our train tickets, fare schedules, train schedules etc Company Vehicles We will ensure that all our vans, lorries and cars that are seen everyday with phone numbers and company names plastered all over them will now include our website URL and also our web address. Our website address will be added to our vehicles with a sticker, this exposes your URL to thousands of people everyday who are driving to work, going to the shops or even walking the dog. Make sure that you have this done professionally though. If it looks badly designed, it will probably reflect badly on your company. It will be prominently displayed in the cabins of all our trains and also in all the train stations Newspapers and Magazines These are a very good source of advertising because so many people use them. It can be quite expensive to run full page colour adverts in the national papers and glossy magazines so it will be very important to ensure that we know the media habits of the target audience. This means that we must ensure that we know which magazines and newspapers are most used by the audience. We will also need to ensure that the colours chosen as well as the design of the Advertisement are carefully constructed to attract the customer and also reflect the chosen positioning of the organisation. The following guidelines will be followed in the construction and delivery of the advertisements: Our ad will have a compelling headline Targeted circulation is more important than large circulation If our ad doesnt work the first time it wont work the third, fourth, fifth... If you cant directly measure it, dont do it. Dont let creatives control your advertising Great advertising is meant to generate inquiries not win awards Be sure your unique selling proposition is in all of your advertising If you dont differentiate yourself your advertising wont be seen, noticed, or acted upon Radio We will utilise this media to reach the general public with the message about the many benefits of using Virgin trains. Perhaps the more important message is to communicate the
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website and the email address of the organisation. Here also the media habits of the target audience are essential if we are to reach them in a cost effective manner. The present fragmentation of the radio industry will make the choice of radio station very critical and consequently, we must rely on the information about the media habits to inform our choice. Television This media is probably one of the most expensive forms of advertising due to its massive audience, especially on prime time T.V. We will utilise this media sparingly due to its cost. This media allows us to animate and use motion to sell our services. The perception of persons viewing the promos will be left with a positive impression of the organisation since most organisations that use television are usually those with a considerable amount of money. We will utilise the period during the Barclays Premier League to advertise on this medium Branded Giveaways We will be placing our website address on items such as pens, pencils, badges, mouse mats, cups and t-shirts etc to be used as a very effective advertising tool. These products will be given away for free, but the expected returns will be well worth the initial outlay. Its worth targeting specific markets that will use your product. We will try giving a pack of pens to our local businesses to distribute to customers as a means of encouraging their train use. Word of Mouth We will ensure that our services which are available to the rail travelling public will be exceptional and consistently delivered. In this context, while our promotions will inform, reassure and persuade our customers to use our services, it must be stressed that the persons charged with the responsibility must undertake to epitomise quality, dedication and commitment during their many interfaces with the public. This service differential will provide a strong means of competitive advantage and will influence the word of mouth expressions of the companys commitment to its customers. If a person likes what you do they will tell six others. If a person is disappointed with what you do, they will tell twenty others. Publicity The best way to drive high volumes of new traffic to your web site is to master the art of getting publicity. There are two very good reasons to seek publicity. First, publicity is free or comes at a very minimal cost (usually the investment of your time). Second, publicity offers your company tremendous credibility through an implied endorsement as well as tremendous reach. We will obtain much needed publicity through the use of: Contests or sweepstakes Stories about satisfied customers Unique or unusual aspects of your business Useful free information available on your site Media appreciation events Unique ways of personalising our products or processes

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Direct Mail Direct mail is in a neck and neck tie with publicity as the best way to drive traffic to your web site. The major advantage of utilizing direct mail is you can encourage your ideal prospects to visit your site. For this reason, the website will be prominently displayed on all our cards In this regard, we will utilise various post cards which will highlight our modern trains, our refurbished stations and the route map of our trains showing the various destinations. We expect that with by promoting the use of post cards, some of the benefits we will achieve are: Compellingly designed post cards will be kept and may be read several times You know your post card will get delivered Because theyre not common they will get noticed Post cards are a fast read which is appreciated by busy prospects Post cards are inexpensive to produce and we will, at first, use our company mailing list. We will first send them out to all of your past and present customers and we expect that through sharing these cards, prospective customers will also be influenced. Hoardings We will place hoardings which prominently display our website information along the routes taken by customers as they ingress and egress from the various train stations. These will take the form of billboards as well as large posters which can be affixed to buildings and walls. We will also launch these in the cabs of buses as well as on their sides. In taxis we will place our post cards within the cab and wherever possible, place them on the top of taxis Training The operation of the system by persons within the organisation is essential for its smooth functioning. To achieve this, all personnel who will be required to operate the system must be given adequate training in the operation of the system and most importantly, the attitudes which must be articulated during every customer interaction. This training will start during the system evaluation phase and continue to form a vital part of the E-CRM introduction.

E-CRM Project

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E-CRM Operational Plan

Virgin Trains
SR# 1 2 3 4 5 6 7 8 9 10 11 Budget Item e-Newsletters Printing of Website on Co. Docs Printing of Website on Co. Vehicles Newspaper ads (website focus) Magazines Radio TV (Barclays Premier League) Branded Giveaways Design/Painting for Hoardings Hoardings (Billboards) Direct Mail Postcards)

BUDGET 2009
Frequency 5 Pictures/Month Once per Quarter Once per year 5 Ads/month 2/month 10/month Jan Feb Mar Apr 5 1 1 5 2 10 5 2 10 5 2 10 5 2 10 5 2 10 4 1 1 4 2 2 5 2 10 4 5 2 10 4 5 2 10 4 May 5 Jun 5 1 Jul 5 Aug 5 Sep 5 1 Oct 5 Nov 5 Dec 5 1 1 5 2 10 4 Total # 45 4 2 45 18 90 20 1 1 4 4 Cost/Unit 100 10,000 25,000 1,500 500 250 4,000 1,000 2,500 5,000 750 Cost/Year 4,500 40,000 50,000 67,500 9,000 22,500 80,000 1,000 2,500 20,000 3,000 300,000 Printing and delivery of postcards Billboard Rental for the period till Dec Comments Professional Photographer Printing on letterheads, envelopes etc Twice per year Using Local Newspapers Magazines of choice

Notes: Activity will start from April 24th when the URL for the e-CRM access has been determined

Virgin Trains

BUDGET
SR# 1 2 3 4 5 6 7 8 10 11 Budget Item e-Newsletters Printing of Website on Co. Docs Printing of Website on Co. Vehicles Newspaper ads (website focus) Magazines Radio TV (Barclays Premier League) Branded Giveaways Hoardings (Billboards) Direct Mail Postcards)

2010
Cost/Year 4,800 40,000 50,000 54,000 12,000 15,000 96,000 1,000 20,000 3,000 295,800

Virgin Trains

BUDGET
SR# 1 2 3 4 5 6 7 8 10 11 Budget Item e-Newsletters Printing of Website on Co. Docs Printing of Website on Co. Vehicles Newspaper ads (website focus) Magazines Radio TV (Barclays Premier League) Branded Giveaways Hoardings (Billboards) Direct Mail Postcards)

2011
Cost/Year 4,800 40,000 50,000 54,000 12,000 15,000 96,000 1,000 20,000 3,000 295,800

References
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. London Travel Demand Survey (March 2007) Transport for London London Area Travel Survey National Rail Results An Introductory Report Strategic Rail Authority Statistics Team (February 2005) Integrated Transport: perception and reality (February 2010) Passengerfocus ATOC Virgin Trains Performance Virgin Trains Customer Information NATIONAL PASSENGER SURVEY - WAVE 21 Autumn 2009: TOC Report For Virgin Trains 2009 edition Section 2: Personal Travel by Mode - Transport Trends National Passenger Survey: Autumn 2009 Passenger Focus ATOC 2009 edition Section 3: Public Transport Transport Trends http://www.virgin.com http://www.virgintrains.co.uk/ http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG072 www.ausweb.scu.edu.au

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