Upload
karacjordan
View
1.375
Download
0
Tags:
Embed Size (px)
Citation preview
Kara Jordan Svetlana DamjanovicBrittany Pierce Sarah Hudson
Warrington Consulting“The Foundation for Success”
Central Questions
Situational Analysis
Conclusion FinancialsStrategyVision
Solutions
Situational Analysis
Conclusion FinancialsStrategyVision
SWOT Analysis for VIA Rail Canada
Situational Analysis
Conclusion FinancialsStrategyVision
Competitors
Situational Analysis
Conclusion FinancialsStrategyVision
Alternative Projects
Situational Analysis
Conclusion FinancialsStrategyVision
Alternative Projects
Situational Analysis
Conclusion FinancialsStrategyVision
Vision
Situational Analysis
Conclusion FinancialsStrategyVision
Target Markets
Situational Analysis
Conclusion FinancialsStrategyVision
Positioning Statement
FOR people who want to travel effortlessly
VIA is the ideal mode of transportation
THAT takes the hassle out of traveling
BECAUSE we provide impeccable customer service, unmatched prices, and a sustainable
way to travel
Situational Analysis
Conclusion FinancialsStrategyVision
Strategic Goals
To create a “train culture” easily adopted by the Canadian people, by
shaping perception of the railway system in the minds of consumers, and creating benefit for your target market.
3.Launch Via Card
2. Opening new office in France
Situational Analysis
Conclusion FinancialsStrategyVision
Product
4563 6782 56345 2231 78
• Plastic reusable card -Utilizing smart card technology (RFID)
• Combine with Via Préférence program
• Align with sustainability focus
• Promote train culture
Situational Analysis
Conclusion FinancialsStrategyVision
http://en.wikipedia.org/wiki/RFID
Rail Card Example: Oyster Card
• London, England - Introduced in 2003
• Since 2007, more than 80% of all journeys on services run by Transport for London used the Oyster card
• Valid on a number of different travel systems
Situational Analysis
Conclusion FinancialsStrategyVision
http://www.tfl.gov.uk/tickets/faresandtickets/singlefares/1053.aspx
Placement
• 50% of Via ticket sales occur on website
• Unique Identifiers allow customers to refill cards online, or at train station
• Smart phone application
Situational Analysis
Conclusion FinancialsStrategyVision
Promotional Mock Ups
Order Travel Card
Situational Analysis
Conclusion FinancialsStrategyVision
Promotion
• Website • Hire Social Media Expert • Point of Purchase displays • Advertising on Trains • Reach out to Via Preference members • Television spot • Direct Mail
Total Costs: $2 Million CAD
Situational Analysis
Conclusion FinancialsStrategyVision
New Ticketless
Travel
My Via profile | About Via Rail| Help | Contact Us | Français – Other Languages
New VIA Travel CardNew ticketless technology will start with Québec City- Windsor Corridor.
Faster Travel Enhanced Travel ExperienceCombine VIA Preference
4563 6782 56345 2231 78
4563 6782 56345 2231 78
Mock Website
Price • VIA Rail Card Price- $2 deposit • Fare Price Discount • “Business Triangle” – 15%• All Other Zones- 10%• Incentive to use VIA Rail card
Single Ticket Fare Business Triangle Via Rail Pass Fare
$69.00 $58.65
Single Ticket Fare Vancouver- Winnipeg Via Rail Pass Fare
$552.30 $497.07
Situational Analysis
Conclusion FinancialsStrategyVision
• Build new office in Paris, France
• Hire 8 employees– Director of French Operations
– 7 supporting team members
• Projected Cost $997,864
France Expansion
Situational Analysis
Conclusion FinancialsStrategyVision
• Leverage Partnership with SNCF
• Strengthen Partnership with CTC
• Local Travel Agencies– Ariane Tours
– Nippon Travel Agency
• Airlines – Air France
• Promote VIA Rail on S’Miles website
France Expansion - Partnerships
Situational Analysis
Conclusion FinancialsStrategyVision
• Niche Market:– Longer leisure travel
– Soft adventure
– Vacation destination packages
• Canada by Rail and Alaskan Cruise with Holland America
• Trans-Canada Experience
France Expansion - Marketing
Situational Analysis
Conclusion FinancialsStrategyVision
Projected Cost
Situational Analysis
Conclusion FinancialsStrategyVision
Projected Cash Flows2010 2011 2012 2013 2014 2015
Cash Flow ($203.9) ($90.8) ($29.2) $16.8 $17.0 $22.1
Projected Cash Flows
Situational Analysis
Conclusion FinancialsStrategyVision
Timeline for VIA Rail Card0-3 Months 1 Year 1.5 Years 2 Years 3 Years 4 Years
-Partner with Oberhur
-Hire Project Manager
-Technology designed
-Sync with loyalty program
-Begin training employees
-Trial line with machines (Corridor)
-Ocean line opening/ Evaluation
-Next 3 lines open/ Evaluation
-Next 5 lines open/ Evaluation
-Delegate team
Situational Analysis
Conclusion FinancialsStrategyVision
Timeline for France Expansion0-3 Months 1 Year 1.5 Years 2 Years 3 Years 4 Years
-Look for real estate
-Buy building
-Hire2 people for training
-Hire 5 French employees
-Running Operations
-Search for further opportunities
-Focus on growing partnerships(With French travel agencies)
-Hire Director for France
Situational Analysis
Conclusion FinancialsStrategyVision
Risk Assessment- VIA Rail CardRisk Strategy
Security risks & damaged cards
System failures
Competitor retaliation
Encourage report of lost cards, full reimbursement of lost credit on cards (within 5 days)
Possible retraction, constant re-evaluation of progress and efficiency
Possible retraction, constant re-evaluation of progress and efficiency
Situational Analysis
Conclusion FinancialsStrategyVision
Risk Assessment- France ExpansionRisk Strategy
Political/ economic conditions
No market in France, no interest
Low risk, but possible retraction, sell office
Not likely, but would adjust strategy to new segment, research consumer wants & needs
Situational Analysis
Conclusion FinancialsStrategyVision
Conclusion
Situational Analysis
Conclusion FinancialsStrategyVision
VIA Rail Card
Expansion to France
Market to both business
& leisure customers
Within 4 Years
Strategic Fit
Kara Jordan Svetlana DamjanovicBrittany Pierce Sarah Hudson
Questions?
Warrington Consulting“The Foundation for Success”
Appendix
Situational Analysis
Conclusion FinancialsStrategyVision
SWOT for Porter
Appendix
SWOT for West Jet
Appendix
SWOT for Air Canada
Appendix
SWOT for Buses
Appendix
SWOT for Automobiles
Appendix
Business Target Market
Young Professionals Mid- Age Professionals
Wants price sensitive, social, seek sustainable alternatives, technologically savvy
time sensitive, seek comfort, want reliability, high customer service expectations
Strategic Fit Unmatched pricing, special business quad seating, sustainable practices, free Wi-Fi and electric outlets
Luxurious accommodations, customer service focus, reliability
Appendix
Leisure Target Market
Mid-Aged Travelers
Seniors International
Wants Safety, comfort, value, reliability, family activities
Comfort, luxury, site-seeing, customer service, soft adventure
Long haul trips, customer service, soft adventure, dinning
Strategic Fit 2008 Safety Award, various accommodations, VIA Preference , Children’s Activities
Various accommodations, 360* observation dome, onboard activity coordinator , information sessions, premium dinning
Language options, activity coordinator, numerous vacation options
Appendix
Alternatives
Appendix
Criteria TOTALS
Fast Implementation Profitability /Long Term Success Customer Value Safety/Reliability Train Culture (Out of 5)
Options 0.2 0.3 0.2 0.15 0.15
Dynamic Pricing Model 3 5 1 1 2
0.6 1.5 0.2 0.15 0.3 2.75
Online Partnerships 4 4 4 1 4
0.8 1.2 0.8 0.15 0.6 3.55
International Expansion 3 4 4 2 5
0.6 1.2 0.8 0.3 0.75 3.65
Loyalty Program Expansion 4 4 5 1 4
0.8 1.2 1 0.15 0.6 3.75
Sustainability 3 4 5 3 5
0.6 1.2 1 0.45 0.75 4
Infrastructure & Reliability 1 3 4 5 1
0.2 0.9 0.8 0.75 0.15 2.8
Express/Fast Trains 1 4 5 3 4
0.2 1.2 1 0.45 0.6 3.45
NPV of Project (in thousands) 2010 2011 2012 2013 2014 2015
Terminal Value
Revenue $7,389 $14,779 $19,705 $19,705 $24,631 $324,518Cost Savings $12 $21 $35 $31 $44 $1,305Costs
Initial Investment $200,000 $90,424 $40,883Cards $276 $332 $332 $442 $442 $553 $5,218Scanner $9 $6 $8 $6 $1 $1 $5Jobs/Training $1,222 $1,105 $999 $903 $817 $739 $11,548Promotion $2,112 $6,330 $1,727 $1,561 $1,412 $1,277 $73
Building in France $287 $39 $35 $32 $29 $26 $406Total Cost $203,906 $98,235 $43,983 $2,945 $2,700 $2,594 $17,250Cash Flow ($203,906) ($90,834) ($29,183) $16,794 $17,036 $22,081 $308,572PV at Year 0 ($203,906) ($82,136) ($23,862) $12,417 $11,389 $13,348 $279,024
NPV $6,275
NPV Analysis
Appendix