Traffic congestion is an acute problem in Brisbane, and there is a lot of political controversy over the Hale Street Bridge that Can Do Campbell has proposed for relieving congestion. In particular, the State Government will not allow the right turn lane from Coronation Drive across the new bridge because it will cause so much congestion during construction!! Politicians are now searching for answers to these problems, and future transport in Brisbane is reaching a watershed. Let us assume that the State Government is trying to commercialise Queensland Rail (QR) even further to get out of the business of transport and focus on policy making for the benefit of Queenslanders. It creates a Single Business Unit (SBU) in QR called Trammo, which is to focus on light rail solutions (and possibly a tube rail system like that in London in the future). You have to be aware that the Hale Street Bridge is a trying to overcome significant congestion, and it is a large infrastructure project and there are environmental, social and economic considerations (among others) that will have a large part to play in what the community at large will accept. Your group is Trammo that decides to put a proposal to the Brisbane City Council (BCC) to Build, Own, Operate and Transfer (BOOT) the Hale Street Toll Bridge. However, it is not just focussing on revenue from the cars and trucks using the bridge, but suggests that a light rail system could be tacked on to the Bridge connecting Toowong, Milton, West End and South Brisbane to cater for future transport needs. It will also allow congestion relief by providing people, who wish to cross the river quickly, an opportunity to do so without having to use their car, or catch a train to Roma Street and then back across to South Brisbane and then having to walk to West End. Although this is a business proposal from a commercial entity, separated from Government, which must follow traditional business operations and make a profit, you may see that this is a way for the State Government to relieve the immediate problem (albeit for a Liberal Lord Mayor) of not being seen to be obstructive. It also allows the State Government to dip its toes into light rail on a small scale to see how it goes, without causing too much embarrassment if it does not work. However, as Trammo, you are not to play the Government card, without also doing the proper business proposal. The Lord Mayor, whoever he may be tomorrow, is not going to do any favours for the State Government because they suddenly sprung BCC with prohibitions over Hale Street recently. • At This stage you only need to consider the marketing plan to BCC in order that the Lord Mayor understands that if you are given the green light to amend the project to include light rail, the project will be viable. The Marketing plan should focus on the following: Planning Situation Analysis 1. Internal Analysis • People & our skills • Pricing strategy • Product strategy • Promotional strategy • Place strategy • Our organisation 2. External Analysis • Environment ? Economy ? Social ? Demographic ? Political & Legal ? Technology • MARKET ? Industry ? Customers ? Competitors Key Issues: 1. How much money do you need? 2. What are your main constraints? 3. How can any of your ideas still dovetail with Trammo’s focus? 4. How can you increase awareness? SELECT A TARGET MARKET: ? One that you can service ? One that is profitable ? One that you can add value to ? One that is going to grow MARKETING MIX: ? Product – or in your case the Service/Experience ? What will you offer? ? What quality – Rolls Royce/Commodore ? Can you value add? ? Promotion ? How are you going to get known? ? Who can help? ? Word of mouth (WOM) THE BEST! ? Place ? This is really fixed with the bridge ? How can you make it attractive? ? Price ? Skimming – gouge! ? Penetration – muscle in at low price! ? Be careful of cannibalising QR revenue ? Price to determine service position in market relative to competition ? People ? Are Trammo’s people service focussed? ? Have they got the required skills? ? What about people skills? ? How do the public relate to us? REMEMBER YOUR SERVICES ARE UNIQUE “PRODUCTS”: ? Your service is intangible ? Your service is variable and perishable ? Your client & others are part of the service ? Service delivery and “consumption” of it take place simultaneously ? Clients have difficulty evaluating quality Also your project Should: • Consider at least 4 “P’s” and be able to make enough money to pay for your light rail solution • Who will be using the light rail system (target market); look at commuter patterns (BCC Business Case Traffic Report) • Possible future use of tracks as a heavy rail system (as part of QR?) • How will we advertise the use of the light rail system