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East Coast overview – the who, why and what Planes, Trains and Automobiles - Focus on First Class Onwards and upwards

Planes, Trains and Automobiles – using quality to gain competitive advantage and win the battle for market share Peter Williams Commercial and Customer Service Director 9 th May 2012. Outline. East Coast overview – the who, why and what Planes, Trains and Automobiles - Focus on First Class

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East Coast overview – the who, why and what Planes, Trains and Automobiles - Focus on First Class Onwards and upwards

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  1. Planes, Trains and Automobiles – using quality to gain competitive advantage and win the battle for market sharePeter WilliamsCommercial and Customer Service Director9th May 2012

  2. Outline East Coast overview – the who, why and what Planes, Trains and Automobiles - Focus on First Class Onwards and upwards

  3. East Coast Overview • We are “Britain’s premier long distance rail operator” • We operate 155 services a day from King’s Cross to Leeds, the north of England and Scotland • It is a business that has ‘failed’ twice and is currently being managed on behalf of the DfT

  4. Ownership Structure Ownership and relationship with the Government Public Corporation

  5. East Coast Overview • We are “Britain’s premier long distance rail operator” • We operate 155 services a day from King’s Cross to Leeds, the north of England and Scotland • It is a business that has ‘failed’ twice and is currently being managed on behalf of the DfT • Fundamentally East Coast is a good business and will be returned to the private sector in December 2013

  6. Real Time Due Diligence Company Turnaround Vision Sustainable Value Market Value EFQM Score Balance Scorecard DOR Business Plan Due Diligence Bed In Reality Mobilisation Finding the Truth Understand Causes of Crisis Issues/Action Plan Vision Work

  7. Real Time Due Diligence - Key Themes • Four themes emerged; • Poor process understanding • Lack of leadership stability • Distraction from core business • Changing priorities

  8. Revenue Growth Trend

  9. Q: How can East Coast maximise shareholder return in the most fiercely competitive transport market in the UK?....

  10. Planes, Trains and Automobiles....

  11. ….and when the economic backdrop wasn’t helping • The UK economy recovery was extremely slow • It would continue to place pressures on revenue in terms of slow journey growth and down-trading • Significant impact as we operate in a largely discretionary market - the bulk of our customers are not regular travelers • As a national brand and operator, we experience large regional variations - impacting our ability to grow revenue in local markets

  12. It’s all about…1. Getting the offer right for our customers2. Shouting about it from the hilltops3. Excelling at delivery….through a motivated and passionate team

  13. New East Coast Timetable • The Biggest Change Since 1991 19 additional services every weekday 13 additional services on Saturdays 9 additional services on Sundays More than three million extra seats per year Improved frequency and pattern of train services Many of our typical journeys faster than ever New “Flying Scotsman” 4hr EDB – KGX New London – Harrogate New Lincoln – London

  14. New First Class Complimentary Catering • Research was undertaken during January 2010 to test the impact of introducing a complimentary catering proposition in First Class • Aim to drive modal shift, protect the service, generate revenue and turn loss-making part of the business into profit • Emphatic results – the new offer was enthusiastically received • A huge change for on-board • From 100k to over 1 million meals served each year Project delivered in 12 months

  15. New First Class Complimentary Catering • Our customers in First Class can now enjoy complimentary food and drink. Six offers throughout the day providing choice and variety • Complimentary Wi-Fi • Quiet Coach

  16. New Improved Customer Service • We want to be warm and friendly • Welcoming, approachable • We want to have bags of personality • Let our characters shine through • We will think customer • Listening and proactive • New management of communications with customers (inc. web and Customer Relations) • New Service Standards

  17. ‘Welcome To’ Campaign • Our new brand is about a warm and friendly welcome, bringing pride and personality to East Coast: • Posters around stations and locations • Promotions advertised to all registered customers • Exclusive offers for users of our website • New online loyalty scheme ‘Rewards’ • TV campaign....

  18. ‘Welcome To East Coast’ TV Campaign

  19. Internal Communications • Held two Managers’ Briefings to promote the changes. This included films and live broadcasts from external locations • Managers’ briefing packs distributed at these events to communicate to their teams and colleagues across the business • We stepped up work in regular channels, including The Line, East Coast News, m@inline, PC wallpapers, posters and banners, plus a range of staff promotional products on the weekend of launch.

  20. Turnaround in First Class Growth Note: 3 period moving average

  21. Onwards and Upwards

  22. Brand Vision: Why we’re here • Throughout our business we’ll be welcoming to customers, helping to make every journey with East Coast feel like a destination in its own right. To serve the travellers of the East Coast of Britain, making every journey a pleasure. They don’t have to choose us but our aim is to make it impossible for them to choose anyone else.

  23. Putting the Customer at the Heart of our Business

  24. Questions?

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