Business analysis and communication plan of a transport company

2.1. KNOWLEDGE OF THE PRODUCT OR SERVICE AND OF THE MARKET WHERE IT PERFORMS, ANALYSIS AND CONCLUSIONS.

2.1.1. DETERMINATION OF PROFILE AS TO PRICE AND QUALITY.

The company has six units in good condition and suitable for transit through the region. On Route CITY 1 CITY 2 offers a price below average, staying normal on route CITY 1 CITY 3

It has implemented a delivery service for the sale of tickets. In addition, it has some disadvantages such as late arrivals and departures, which is a constant in companies that cover these routes in our country; the fuel supply with the passage on board and pick up of passengers and cargo in informal whereabouts.

A majority of the company's customers rank the company as Good.

2.1.2. PERFORMANCE OF THE SALES OF THE COMPANY IN THE LAST FOUR YEARS AND POSITION OF THE SERVICE

Regarding sales volume, the Company is in second place on the route CITY 1 CITY 2, compared to B that leads it with a relative margin of approximately 25%.

On route CIUDAD 1 CIUDAD3 maintains a leadership in terms of formal passengers, that is, they buy their ticket at the Agency or Concession, since it is the only company that maintains an exclusive exit to CIUDAD1

2.1.3. EVALUATION OF THE COMPETITIVENESS IN USE AND DESIGN OF THE LOGO AND SINGLE IDEA OF SALE.

There is no Unique Selling Idea, seeing a great variety of shapes and designs both in the logo, typography and in advertising campaigns, stationery, etc. (See photographs in the annex)

The logos and brands were apparently designed seeking to offer a regionalist image that highlights the tourist attractions of the department in terms of iconography and even in the choice of colors, but in our opinion the set is not the most suitable because it is not striking and lacks of coherence or unity. (To see photos).

A Top of Mind, made 100 meters from the agency, did not collect a positive result of brand recall in this city. (See Table 32)

The Slogan lacks impact due to the number of words with which it is also not easy to remember, so much so that no respondent managed to remember it at the time of the survey. (Table 17)

2.1.4. SALES INFORMATION BREAKDOWN BY ROUTES

Regarding sales by routes, it is observed that the points of sale at the ends of the route are those with the highest volume, unlike the intermediate points where sales are lower. Only percentage information could be obtained, which is as follows:

C 1… 35%

C 2… 30%

C 3… 30%

INTERMEDIATE POINT 5%

2.1.5. MARKET SHARE HISTORY AND REASONS FOR POSSIBLE CHANGES

ROUTE CITY 1 CITY 2 *

FORMAL PASSENGERS (WITH AGENCY TICKET)

x 35%

c 47%

b 18%

FORMAL + INFORMAL PASSENGERS (ROUTE)

x 16%

b 21%

OTHER AGENCIES 14%

EMP. INFORMAL 49%

*SOURCE:

• Counting carried out at the exit of CIUDAD 2 and Transportation Agencies on April 12 and 16, 2002

- Dealer X CITY 2

- Management affirms that this percentage is maintained with minimal variations since its inception, mainly due to the appearance of New Competitors.

2.1.6. HISTORY OF PRICE POLICY.

X began its services approximately six years ago with a service to CITY 3 and at a cost of S /. 35.00 later and due to competition this amount is reduced to S /. 25.00, uniform price regarding the competition.

Later, on July 16, 2000, the route CITY 2 CITY 1 was opened at a cost of S /. 12.00 - 13.00 with an advantage over the competition with a price of S /. 15.00 and that keeps up to date.

The variables considered to set the Price Policy are:

a) Competition.

b) The lack of economic resources of the passengers.

The strategy used in the formation of the Price Policy is the PRICE SETTING ACCORDING TO THE CURRENT INDEX, based on the prices of the competitors and paying less attention to costs or demand.

2.1.7. ANALYSIS OF PREVIOUS CAMPAIGNS

Regarding organized advertising campaigns, Management is honest in recognizing that apart from flyers and sporadic radio campaigns, there was no advertising campaign as such nor any other of regular magnitude, with the percentage of expenses being 0.1% with respect to to the total.

Discriminating by Average Amounts and Cities, the following are obtained:

PERIOD APRIL 2001-APRIL 2002:

2.1.8. OPPORTUNITIES AND THREATS FOR EACH SERVICE OF THE COMPANY

As strengths of the institution the following can be mentioned:

• Punctuality in the distribution of merchandise.

• He attaches great importance to the Safety concept, both in the case of insurance in which they have covered both vehicles and passengers, and in the case of the personnel for whom he has selected experienced drivers, so much so that from its inception to to date there have been no serious accidents. (See Table 13)

• The survey results in users receiving a service rated as "Good" by 59%, "Excellent" by 10% and "Regular" by 31%. (See Table 12)

• However, when the sample is asked about the aspects that the company should improve; they mention:

a) Bus Conditions 34%

b) Departure Times 32%

c) Rates 28%. (C.23)

a.- Route CITY 1 CITY 2

It maintains a shuttle bus service for transshipment that can assist in a short time in the event of collapses, breakdowns or other mishaps.

The identification of the company with the Department of Amazons cannot be considered as force since the population of CIUDAD 2 mainly relates it to the city of Ciudad 3 as they are their owners.

- Another weakness is the particular relationship that the company has with the dealer.

- In the same way, a lack of willingness to service the staff has been observed, both in CITY 1 and in CITY 2

- In this city it is also observed that the point of sale, although it is located in a strategic place of the CIUDAD 1 terminal, shares the premises with countless companies that reduce visibility and comfort for the reception and handling of cargo.

b.- CITY 1 CITY 3 route

- On this route, if the presence of a customer identification with the regionalist image of the company can be considered.

- It also highlights the presence of a well located and spacious exclusive terminal in addition to the presence of the owners who directly supervise the operation of the point of sale.

9. DETERMINATION OF THE REALITY OF THE SERVICE WITH REGARD TO ITS REAL DIFFERENCES WITH ITS COMPETITORS, AS WELL AS ITS POSSIBILITIES OF CHANGE, ADAPTATION, DIFFERENTIATION BY MARKET OR IMPROVEMENT DEPENDING ON THE CAPACITY OF THE COMPANY.

From what has been said previously, it can be concluded in a first impression that X is a company that, with ups and downs in between, maintains the same level of traditional transport service in the region, even though it is at a disadvantage with its main competitors in terms of infrastructure, presence and market positioning in the specific case of CITY 2

In the surveys carried out, 40% of passengers come from CITY 1 (see Table 4), but the Top of Mind carried out in our city shows us that the company is not positioned in the minds of consumers of inter-provincial transport service. (See Table 32)

On the other hand, 52% of users travel less than thirty days, while 47% do so on a monthly basis.

70% of passengers request discounts or gifts of tickets (see Table 25). If we review the quote by Luis Melnik, "Companies have finally discovered that they have users and consumers, and that it is not enough to always be on the lookout for new buyers, but it is necessary to make enormous efforts to conserve the ones they have" and if we review In the last three paragraphs above, we can conclude that a customer loyalty campaign is necessary in the city of CIUDAD 1, especially in regards to raffles and ticket exchanges.

It should be borne in mind that other companies that cover the same routes have, for the most part, their own terminals and agents, to which it is much easier to impose and standardize criteria, since they are part of the same payroll of the company, which could be included as a recommendation.

Similarly, it can be suggested that the Chiclayo agency has more space for customer service and has a cargo reception and dispatch module at the rear of the terminal.

The progressive modification of the logo, especially in terms of colors and typography.

It is observed that passengers are covered by accident insurance, the scope and benefits of which could be informed to passengers by printing an additional ticket or an additional printing on the travel ticket.

Uniform presentation of staff and training in dealing with the public. It is also necessary to implement punctuality in the bus departure time, all of the above can be done at the same time in order to generate expectation.

81% of the Sample is willing to pay more for a comfortable service, a specific investigation is necessary to see the feasibility of differentiating the service, and according to the results, create a Buss Car or similar service, or in any case provide give more space to a sector of the bus for «agency» passengers or for a sector that decides to pay a little more for comfort and special service.

It would also be important to refuel the unit before boarding the passengers and picking up those who board the informal terminals before going through the agency, an experience carried out with great success by the Cruz del Sur company in its capital terminals.

Finally, it is necessary to build a customer database to determine their personal characteristics, needs, travel frequencies and to be able to carry out direct advertising and mailing campaigns offering new services or promoting the current ones and thus promoting their loyalty.

1. SALES BY CHANNEL, REGION AND DETERMINATION OF THE MAIN CUSTOMERS

CITY Agency 2:

Tickets:

Parcels:

Route:

The main clients include the following:

Cargo Dispatch:

On the other hand, we mention that the load capacity of the buses is seven tons, but currently it is not fully used since only 50% of it is used; in many cases product because it is used only by the companies to which the cargo service is provided and it is not used by the passengers due to the lack of information.

2.2.2. PERCENTAGE OF PENETRATION AND MARKET SHARE

CITY 1 CITY 2

An average of 500 people travel daily, of which X captures an average of 80, which would give us a 16% share *

*SOURCE:

- Counting carried out at the exit of CIUDAD 2 and Transportation Agencies on April 12 and 16, 2002

- Dealer X CITY 2

2. EVALUATION OF THE PRESENCE OF THE COMPANY AT THE POINT OF SALE, EASE OF ACCESS, VISIBILITY, TYPE OF EXPOSURE, PRESENCE BEFORE THE COMPETITION, PLACEMENT OF SUPPORT MATERIAL.

CITY 1

The presence of a logo is observed outside the visual area (very high) (See Photographs in annexes)

The service area is very small, which places it at a clear disadvantage compared to the competition, which has an exclusive and spacious location

As for access, it has a preferential place for being at the entrance to the terminal, but no supporting material is observed that refers or reinforces the unique idea of ​​sale, being the place suitable for the placement of posters and a panel due to high traffic and the privileged location in which it is located.

2.2.4. POINTS OF VIEW, OPINION AND RECOMMENDATIONS OF DEALERS.

CITY 2

• Identification of the company with the authorities in important events.

• Do not miss departure shifts to avoid mistrust.

• Punctuality in departures from CITY 1 CITY 2 in the morning shift, the passenger claims that he leaves and arrives very late

• Stop to eat in good service restaurants, comfortable and good.

2.2.5. TREATMENT AND SUPPORT OF SHAREHOLDERS OR SUPPLIERS, CONDITIONS OF SALE AND SUPPORTS IN GENERAL OF THE DIFFERENT DEPARTMENTS OF THE COMPANY

CITY 2

• Great care in issuing documents.

• Fairly kind to our clients.

• Customer respect

2.2.6. EVALUATION OF SELLERS, PREPARATION SUPPORT AND ADVICE, TREATMENT AND CAPACITY OF RESPONSE.

In general, good treatment is observed but lacking kindness and courtesy, they do not have proactive reactions to unforeseen or user problems, they cling to provisions dictated by the company, they do not seek total customer satisfaction.

2.2.7. EVALUATION OF MARKETING EFFORTS AND THEIR APPLICABILITY IN THE REGION.

The company allocates only 0.01% of its budget in Advertising expenses, which in the period April 2001-April 2002 amounted to S /. 5000.00 and which were invested in Radio advertising in the case of CIUDAD 3, Radio Television in CIUDAD 2 AND 1 in the preparation of almanacs, the results are translated in the survey: 46% reported knowing the company thanks to interpersonal communication and only 10 and 20% thanks to Television and Radio, respectively.

2.2.8. LOCAL SUPPORT NEEDS

CITY 2

- Lack of comfort to wait in the agency until the departure time

• We need a young lady who has many human relationships with all kinds of clients.

9. DETERMINE OPPORTUNITIES AND THREATS AS TO DEALERS.

CITY 2.

Opportunities:

The CIUDAD 2 Concessionaire has its own premises that greatly reduces its operating costs, in addition to offering additional services, which would allow it to increase customer service and increase its income.

This place is located in a good location, even at an advantage with respect to the leader (B), who with proper publicity would be in a position to significantly increase the sale of tickets.

Threats:

- There is discontent on the part of the dealer.

- Competition companies seek to break the exclusivity of the service.

2.2.10. DETERMINE FORCES AND WEAKNESSES IN THE DEALER

CITY 2

Strengths:

• Large local well located

- Good customer service before boarding the bus.

Weaknesses:

- Lack of identification with the company

- Refers to lack support from it.

11. EVALUATE TOTAL MARKETING EFFORTS AND THEIR DEGREE OF PUSH

The Evolution of Annual Sales (Page 1) shows the achievements that the marketing efforts have achieved, noting the greatest achievements in increasing the frequencies of Route CITY 1 CITY 2, on the other hand it is noteworthy that the company prevails a rational criterion as evidenced by the abandonment of the Lima CIUDAD 3 route, in which they did not achieve their objective and quickly reassigned the units to another more profitable route, it is noted because a management oriented to reducing costs seeks to obtain performance with the minimum of expenses.

2.2.12. EVALUATE THE CONCESSIONAIRE'S POINTS OF VIEW ON THE PERFORMANCE OF THE COMPANY AND THAT OF COMPETITION.

According to the results sent by the concessionaire, there is a lack of communication regarding the company, as well as dissatisfaction regarding the treatment of drivers by passengers.

The Concessionaire refers to being at a disadvantage with respect to the main competitor (B) who has autonomy in the locality to schedule additional departures and other decisions, in addition to not being able to carry out public relations before Public Organizations of the Locality.

2.3. RECOGNITION OF COMPETITORS.

2.3.1. B

a) Financial situation

B is a company organized on a family basis that gives it a vertical administrative organization based on that criterion.

Its long existence gives it financial strength based on the absence of strong liabilities but also on maintaining a fleet of units that does not renew.

b) Presence and Degree of Growth

The Company has reached a Maturity Degree, has a High Market Share and Low Growth in Demand, classified according to the Classification created by the Boston Cosulting Group as "Milk Cow", that is, a company that requires few investments and generates liquidity for the company.

c) Growth and expansion plans.

So far there is no intention of growth or expansion of routes or acquisition of units.

d) Successes and Failures.

The most relevant success of the company is the fact that it has positioned itself as a leader on the route CIUDAD 1 CIUDAD 2, thanks in large part to providing courteous, efficient and personalized treatment to the passenger, which has managed to retain a large segment of route passengers

e) Analysis of its General Marketing and Communication Strategy

Apart from sporadic advertisements in local media and his personalized attention, thanks in large part perhaps to the fact that he lives in the area for a long time, he does not know of any other planned or organized strategy.

f) Budgets and Contents of your Communication.

They don't know each other.

g. Determine their degree of aggressiveness and possible implications for our Strategies.

During previous campaigns such as the price reduction campaign carried out by X, on a previous occasion B responded by requesting advertising from the radios.

During times of low demand, it provides "pulls" that invite passengers to use the service and, finally, no other reactions to situations such as those described are known.

h. Determine your main areas of vulnerability and weakness, as well as your strengths.

Weaknesses:

• The competition has children in the seats

• You have your units in poor condition

• Your units have suffered many road damage.

Strengths:

• They have units available to schedule 2 or 3 additional shifts

• They lower the passage.

• Driver speed.

• Friendly treatment of the driver with the passenger.

• They do not lose shift so the sale is low.

- Pick up little passenger on the way..

i) Determine what opportunities and threats they face and will face.

Threats

• Impending presence of Company C

- Inclement weather of the "El Niño" Phenomenon (Unit delays, road interruption, poor condition of the same)

Opportunities

• They don't know each other.

Source: Interview with company executives

Dealer X CITY 2

2. 4. KNOWLEDGE OF FINAL CONSUMERS.

1. DETERMINE AND EVALUATE THE PERCEIVED VALUE OF THE COMPANY IN GENERAL AS WELL AS THE COMPETITION.

The results of the survey regarding the perceived value of the route and the company are favorable to it since 8% rate it as excellent, 44% as Good, 23% as fair, and 3% associate it with Security concept. (Table 12)

Similarly, 41% associate it with Security and Trust, 33% with speed, and 19% with careful attention. (Table 13)

2. DETERMINE THE POTENTIAL OF UNSATISFIED NEEDS AS TO SERVICE, EASE OF ACCESS AND CONDITIONS OF SALE AND PRICES.

In the application of the study carried out, we found that 27% are dissatisfied with permanent bus stops, while 15% with unpunctual departures. On the other hand, 11% with the lack of adequate information (Table 14)

When asked what aspects of the company do you think it is necessary to improve? We found that 20% think they are the conditions of the bus, 19% in departure times, 16% Fares, 12% Staff development and

71% of the sample thinks that it is necessary to open more branches (c.23)

2.4.3. ANALYZE BUYERS DEMOGRAPHIC CHANGES.

to. Sex:

64% of the passengers are men, while 36% are women (Table 2)

b. Age:

34% between 16-25

26% between 26-35

17% between 36-45

15% between 46-55

7% between 56-65

1% between 66-75 (Table 3)

From the above data, it can be seen that 50% of passengers do not exceed 35 years of age, and 67% are under 45 years of age, making up an essentially young audience.

Place of Residence: 40% CITY 1, 25% CITY 3, 22% CITY 2, which clearly indicates where the largest volume of target audience is and where the force of the campaign to be conducted should be directed. (C.4)

In addition, we also found that 40% of users work as Independent Workers and 30% are Dependent; 14% study, while in the housewives category it reaches 11% (Table 7)

On the other hand, 44% have higher education, while 45% have completed secondary education, with a majority of 89% of passengers having a good level of education being observed. (Table 5) 66% work in the Private sector while 34% in the Public Sector. (Table 8). Regarding marital status, we observe that 50% are married, while 44% are single. (Table 6) In the economic sector, 40% report having an income between 500 and 1,000 soles

22% earn less than 500 soles, 30% abstained from answering, it can be concluded that the majority of the sample 52% are in the lower middle-low socioeconomic level; fundamental characteristic to take into account for the realization of offers, promotions and pricing policies.

4. DETERMINE THE ROLE OF INFLUENTIAL BUYERS AND CONSUMERS

Table 10 shows that interpersonal communication is the most used medium in the transmission of X's advertising (46%), therefore it can be inferred that influential buyers or opinion leaders play a decisive role in transmitting the Value Perceived "by word of mouth" and this in turn according to its character, positive or negative will directly influence the image and the evolution of sales.

Consumers or users, for their part, determine with their choice or preference the development and success of the company.

2.4.5. EVALUATE THE EXPECTATIONS THAT THE COMPANY GENERATES.

The main concerns regarding promotions are given by:

- Draw for Travel Tickets 29%

- Exchanges, for 5 one free or similar 21%

- Discounts 16%.

The first two places (50%) are occupied by promotions related to direct fares in tickets, an easily achievable objective since the low season is looming where the offer of seats increases, and it is a good time to use it to obtain short-term benefits.

5. MEASURE THE ROLE THAT OUR SERVICE PLAYS IN THE LIFE OR PERFORMANCE OF OUR CLIENTS

77% of the sample refers that the service is essential for the normal performance of their daily activities (C.2)

9% consider that the service is essential in more than 50%

22% by 50%

The 20n in 40%, more than 50%, therefore, considers that the role that X plays in the lives of users is very important.

III.-MARKETING OBJECTIVES

1. Promotion of raffle tickets to obtain customer loyalty

IV.-PLAN AND FUNCTION OF INTEGRAL COMMUNICATION

4.1. GUIDELINES TO FOLLOW

4.1.1. - Design and establish a Unique Selling Idea.

- Redesign the logo and slogan and position it by:

a) Correct placement in points of sale, buses, stationery, uniforms, tickets.etc.

b) Television.

4.1.2.. - Promote customer loyalty

- For five passages one Free (Exchange)

- Create database to use it in direct mail (Mailing)

- Establish a Selective Pricing Strategy for Main Cargo Customers

4.2. DETERMINATION OF THE COMMUNICATION OBJECTIVES.

-Position the new logo

-Achieve an increase of the order of 30% in the Top of Mind

4.3. SPECIFIC DESCRIPTION OF THE GOAL MARKET.

Users with travel frequencies of 30 days or less 79%

47% monthly

18% biweekly

13% weekly

1% daily

Place of residence:

CITY 1 40%

CITY 3 25%

CITY 2 22%