Currently, for the selected route, there are shared taxi services which are costly impersonal and may require vehicle transfers, public transportation which is rather inconvenient and unpredictable and limousine/private car service which can also be pretty costly, but nothing in between. City to City services are a hybrid of a public bus system and a private limousine service, utilizing the bus capacity and the personalized services of a limousine whilst avoiding the high price which limousines and other private carriers would charge.
For most of the market, people appreciate the limousine services but cannot afford the price point. The session of City to City Transportation Services is to provide the customer the finest transportation service available at a reasonable price. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. The company will be led to profitability by Ms. Alma-Lee Gordon, a veteran of the transportation business. Alma-Lee has a degree in Business Administration with a strong background in accounting.
Also forming a part of the management team is Mr.. Brian Gordon who possesses a Bachelors’ Degree in Information Technology and Marketing, n addition to twelve years of service in the hospitality industry as marketer, trainer and guest relations coordinator. Having spent years in two industries which factor greatly into the core business practices, Alma-Lee and Brian both bring to City to City, industry insight and the required skill-set to make it a thriving company. City to City will be focusing on airline passengers, leisure and business travelers. All three groups will likely demand our company’s services.
The target customers will utilize the service because it is convenient and less expensive than if they drove themselves ND hired a personal car. Business travelers will use City to City because it offers a limousine-like service where the traveler has a scheduled ride waiting for them to get to their destination. Since our company will be offering a premium service as a more economical option to the available alternatives, companies will encourage their workers and travel agents will recommend their customers to utilize City to City Transportation Services as a cost-saving measure.
City to City will easily gain market share by utilizing our competitive advantages, which are based on a sophisticated, et purposeful, incentive system for our frontline associates. The system incentives team behavior to build new clients, turn one-time clients into long-term customers, receive positive feedback, and develop a team atmosphere among the employees in the company. City to City Transportation Services is entering its first year of business. The basic market need is for a professional, reliable, transportation service offering a premium transportation experience at a reasonable price point.
There are two distinct segments that are in need of these services. These are: Leisure travelers Business travelers The company will meet the market need by offering a professionalism, cost effective and dependable ground shuttle service between both coasts. Market Summary City to City Transportation possesses good information about the market and knows a great deal about the common attributes of our prized and loyal customers. We will leverage this information to better understand who we serve, meet and exceed their specific needs as well as how our organization can best communicate with them.
We will utilize the internet to widen our reach internationally, as well as participate in co-advertising activities with airlines, travel agencies and online travel site such as Expedite, Traceability and Hotels. Com. Airport services will be offered for delivery of delay/lost luggage at prescribed stops along our route. The leisure segment of our business will not be limited to international passengers but also local travelers which include University students and other students who are in short term housing and return home for weekends, social events such as themed parties and holidays.
Demographics There is no disparity between men and women however we anticipate a higher male readership, as males do not readily give up their independence, should they already own a motor vehicle. Ages 12 years and over are targeted and the clustering of individuals between 18 to 35 years, will be expected to represent approximately 54% of our business. This group covers all college aged students, leisure travelers and business people most prone to utilize the transport solution we are offering to the general public.
Travelers of European decent will also be targeted as they are less likely inclined to explore alternative means of transport from the airport. This customer segment is familiar with this option in the more developed countries they hail from and may not have local knowledge on how to secure an alternative means of getting to their destination. Situational Factors Potential customers have safety concerns in traveling the busy route by themselves. Potential customers have luggage capacity which exceeds that which can be handled by competitors. Affordable.
Market Needs City to City Transportation is providing customers with a safe, reliable, convenient, quality and dedicated professional transportation service for all travelers. City to City seeks to fulfill the following benefits that are important to customers. Convenience: Eliminating the need to utilize many transport options for a destination not in the urban areas. Cost Savings: Round-trip fares along the route are cheaper than using ones own vehicle. Reliability: The service is such, that customers’ schedules may be planned around our service.
Professionalism: The targeted customers have a high expectation for customer service and we intend to exceed these expectations. Market Trends Within the last five years, the transportation industry has seen the trend of customers moving from driving themselves, to utilizing other forms of transportation such as public transportation and other private transportation services. Two factors of this changing trend are the fact that Jamaica depends on international partners to provide it with fossil fuel and the volatility within that market has caused an increase in gasoline prices on a weekly basis.
Likewise, corporate entities more readily have their associates moving among their various operation branches around the island and services such as ours, not only represent a cost saving method, but also reduces rocker fatigue due to long commute while operating a vehicle. Market Growth The growth rate for this area within the transportation sector has been 6% for the last three years and is forecasted to reach 8. 2% for the next four years. The increase in growth is forecasted due to several factors: An increase in travel due to business. Dissatisfaction with the public transport system and the existing alternatives.
Consumers needing to feel safe while they commute. Employers realizing that work can be accomplished during commute. Increased hassles associated with driving, especially long distances. Forecasted increase in overseas airport arrivals The recognition of the ever-decreasing amount of free time, and the time that is saved by utilizing transportation service like ours. SOOT Analysts The following SOOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing City to City Transportation Services.
Strengths Exclusive customer service delivery system, through Tools and electronic CRM systems Ground breaking safety policy and emergency training Personal oversight from directors with field knowledge Well-trained employees. An innovative staff compensation system that prizes customer satisfaction, customer feral, and repeat business. A strong, market-driven business model. Weaknesses Lack of possibility for upward mobility may discourage workers. A lack of brand amounts of capital. The difficulty to find above average employees.
All communications technologies are from outside the organization Opportunities Expansion of route to western cities like Montage Bay Participation in a high-demand industry. Corporate alliances with transportation, education, tourism and finance industries. Increase and maximize profits via operational efficiency. Steady future demand. Ability to build brand equity. Threats Future/potential competition from a franchise from another market. A catastrophic event that has a significant, negative effect on the travel industry.
Unexpected governmental regulation of the private ground transportation industry. Poor road infrastructure Lack of alternate routes which do not deviate far from planned routing Volatile fuel prices Fleet servicing is done by outside company thus our success is linked to theirs Competition The desired route currently has several competing transportation systems: Public Transportation: The Government does not offer transportation services from our chosen starting point to destination. This is left up to private individuals, some of whom are not registered, or insured to transport the general public.
While this is an inexpensive alternative, there are several disadvantages. The service is unreliable and safety is an issue when unregulated vehicles are used. Comfort is compromised as service is disregarded; rather focus is placed on maximizing the passenger load per trip. There is also a limit to how much can be taken onboard with you and there is little or no extra room except you lap to accommodate your belongings. Taxi Service: Taxis do provide service to and from both cities however, customers cannot kook the trip in advance. Taxis can also be quite expensive due to the distance.
Other Private Bus Services: This is a less expensive option, similar to our operations, however, it fails to realize the unique experience each customer requires. Additionally, you lose out on the personalized service relative to City to City Transportation Services’ offerings. The buying patterns of these services vary based on the length of the trip, who is paying for it, and if it is a last minute or planned trip. The longer the trip, the more economical a transportation option is relative to driving ourselves or trying to compensate for variables due to uncertainty.
A large percentage of business travelers prefer to use an upscale transportation solution like City to City Transportation Services or a limousine service for their employees. If the trip is planned at the last minute, taxi services might be the only option, however, City to City Transportation Services will offer last minute bookings if seats are available. Service Offering City to City Transportation Services provides a transportation solution for the travel along this route on short notice, but they generally work with a reservation yester.
A customer would call or submit reservations online in advance and provide the company with flight information for us to determine which shuttle would be best to facilitate flights. Our schedules presently seek to facilitate our business travelers more than our other customers. This will be reviewed should we see shifts in demand. For pick up at the airport, City to City Transportation Services would meet the customer outside of the baggage claim area after the customer has picked up their luggage and would drive them to their destination along the route.
Power strips o facilitate charging electronic devices and headphones are available to persons who wish to listen to the onboard video or guided tour while in transit. Free wife, in addition to an onboard lavatory are available for passenger convenience. An onboard courtesy phone provides complimentary three minute calls to passengers wishing to contact their hotels and family members overseas to advise of their safe arrival. The operations are similar to an airline in that a Transit Liaison Officer (TOOL) will accompany the driver on each trip. This individual will handle the onboard manifests and ensure passenger comfort.
They will also tag luggage and arrange for taxi services should they be required at the next stop. In addition, they chaperone unaccompanied minors who may be onboard and ensure they are safely received by a guardian at their destination. Tools are also all certified in Cardiac Pulmonary Respiration (CPRM) and can effectively operate the onboard defibrillator and oxygen tank. Keys to Success The keys to success are the factors that make the difference between a successful business and a failed operation. Aiming for total customer satisfaction is paramount to our success. City to City’s keys are: Safety. Reliability. Convenience.
Professionalism. Critical Issues City to City is still in the speculative stages as a service provider. The critical issues that it faces are the following: Build a loyal customer base that regularly uses City to City. Develop convenient ways for bookings and payments to be handled. Monitor growth and ensure that expenses do not exceed revenues. Ensuring service is not compromised through growth. Train the employee drivers to offer outstanding service. This issue will be addressed by developing a unique compensation structure that incentives this type of behavior. Marketing Strategy one to address each of our segmented targeted groups: 1.
Leisure Travelers: City to City Transportation Services will be using advertisements as a way to increase visibility for the company. The advertisements will be placed in University Publications and boarding school welcome packets in Kingston, local newspapers with the highest readership level in the Echo Iris and Kingston areas. Other ads will appear on the Jamaica Tourist Board’s website, as well as that of the Norman Manley International Airport’s (ANIMA) transportation page. City to City will also be working tit associations such as the Chamber of Commerce and other community groups to try to build up a network of users.
City to City Transportation Services believes that working with these groups will provide them with a steady flow of customers. Additionally, since a lot of these groups are close knit among members, referrals will be quite powerful when they are coming from a member who already has established a trust bond with the other organizational member. 2. Business Travelers: City to City Transportation Services will be contacting the human resources department of many of the different companies among the route hat have employees traveling and tell them about City to City Transportation Services ‘ offerings and offer them an introductory discount.
This will be an important segment to win over, as companies routinely have employees traveling throughout the year for training, seminars and temporary assignments. Businesses are also valuable because once the initial contact is made, the relationship can be turned into a steady stream of business. Additionally, there will be advertisements targeted for this market segment in the Business Observer and Gleaner. Mission The mission of City to City Transportation is to provide the customer the finest lace. Our services will exceed the expectations of our customers.
Marketing Objectives Steadily gain in market share. Increase repeat customers by 3% per quarter. Decrease customer acquisition costs, measured by a decrease in marketing costs divided by the number of new customers. Financial Objectives 1. Increase the profit margin by 1% per quarter. 2. Decrease training costs of employees every two quarters while simultaneously improving service quality. 3. Decrease the operation costs of the leased vehicles through improved preventive maintenance and behavior modification. Target Marketing
The customers can be divided into two groups: families/individuals on pleasure trips, and business travelers. The first group is taking a trip for pleasure and will either be an individual or a family. Their choices are to drive, use public transportation, take a taxi, or use a limousine service. This group does not typically mind paying a bit more for a solution that takes care of their transportation to and from their destination. Since they are leisure/pleasure travelers, they appreciate having a service that gets them to their destination in a seamless way, so they do not have to worry about pickup point.
The second group is the business traveler. In the past the company would typically hire a private car service to pick up their worker or have them drive their own or a rented vehicle. With CO Transportation Services as an alternative, there is a transportation service that functions like a private car service, but without the overly fancy car and the high price. As companies are always looking at ways to cut costs, CO Transportation Services offers a very reasonable solution in terms of comfort and cost.
Positioning City to City will position itself as the premiere, most professional and reliable express hutted service terminating at the Norman Manley International Airport from the north coast. Its rates will be akin to services offered and the company will achieve the desired positioning by leveraging its competitive edge. The company’s competitive advantage will be based on an incentive system that rewards the driver economically when they achieve good service, develop repeat customers and act in a team fashion instead of competing against other company drivers. This incentive system will reward drivers when: 1 .
The company receives positive feedback about the onboard service team (a feedback system will be set up). . The customer is turned into a repeat customer. 3. The Tools and drivers develop new customers. 4. The Tools and drivers act in manner that is team based instead of individual gain. Through this complicated but purposeful system, City to City Transportation Services is incentives behavior that it believes will help the company succeed. Strategy Pyramids The single objective for City to City is to position itself as the market leading transportation service.
The marketing strategy will seek to first create customer awareness regarding the company and the services offered, develop its customer ease, and work toward building strong customer loyalty and new customer referrals. The message that City to City seeks to communicate is that it offers a first-class shuttle service without a premium price. This will appeal to both business travelers as well as families that use shuttles like ours for their travels. This message will be communicated through a variety of methods. The first method of communication will be advertisements.
Two different sources will be used for the advertisements, The Jamaica Gleaner and the Jamaica Observer. Within both publications, ads will be placed in their business section as well as the travel section. The second method of communication will be visibility generated through relationships cultivated with organizations such as Chambers of Commerce and associations such as the Jamaica Hotel and Tourist Association OATH) in particular have an active, loyal membership base and visibility in its membership newsletters and display posters at their offices will help position City to City.
The last method of communication will be networking with different companies’ travel departments. Alma-Lee and Brian are well connected within the community and will leverage these contacts to gain “entry” into the larger nannies in hopes of generating a constant stream of business from the travel departments. City to City Transportation’s marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing: The pricing model will be based on a per-trip rate with a slight discount offered for round trip service.
Distribution: By virtue of the type of service offered, distribution will occur where ever the customer requires it to be. Presently e-commerce and retail partners are the ones being utilized. Promotion and Advertising: City to City will use arioso activities to achieve positioning and visibility including advertisements and strategic relationships. Customer Service: The business model has been premised on the assumption that outstanding customer service is required in order to build a sustainable business based on repeat customers and new customer referrals.
Marketing Research City to City Transportation used a survey to gain insight into prospective customers’ preferences, needs and desires. The surveys were given out to travelers at the airport as well as persons who traveled the route via hotels and banks. The surveys were composed of a total of 1 5 questions. The number of questions was kept low to encourage people to complete the survey. Alma-Lee developed the surveys. The careful construction of surveys is imperative to achieve a statistically significant result that is meaningful.
A total of 1 55 surveys were completed electronically and returned, from the 250 emails sent, representing a fairly high return rate. The results of the survey ultimately served two functions: 1 . Confirm/validate previously held assumptions; 2. Provide insight into prospective customers’ preferences and thought processes. The surveys provided copious amount of information for both functions. Due to the argue amount of information that was mined, City to City plans to conduct more primary research in semi annually.
This will help in identifying trends as well as continually evaluate our performance based on customer expectations. Financial, Budgets, and Forecasts This section will offer a financial overview of City to City Transportation as it relates to the marketing activities. City to City will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy. Break-even Analysis The break-even analysis indicates that $3,281,283 is needed in monthly revenue to reach the break-even point.