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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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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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Presentation Transcript
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Planes, Trains and Automobiles – using quality to gain competitive advantage and win the battle for market sharePeter WilliamsCommercial and Customer Service Director9th May 2012
slide2
Outline

East Coast overview – the who, why and what

Planes, Trains and Automobiles

- Focus on First Class

Onwards and upwards

slide3
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
ownership structure
Ownership Structure

Ownership and relationship with the Government

Public Corporation

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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
real time due diligence
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

real time due diligence key themes
Real Time Due Diligence - Key Themes
  • Four themes emerged;
    • Poor process understanding
    • Lack of leadership stability
    • Distraction from core business
    • Changing priorities
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Q: How can East Coast maximise shareholder return in the most fiercely competitive transport market in the UK?....
and when the economic backdrop wasn t helping
….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

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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
slide13
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

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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

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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
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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
slide17
‘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....
internal communications
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, [email protected], PC wallpapers, posters and banners, plus a range of staff promotional products on the weekend of launch.
turnaround in first class growth
Turnaround in First Class Growth

Note: 3 period moving average

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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.

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