via rail jmucc presentation

Kara Jordan Svetlana DamjanovicBrittany Pierce Sarah Hudson

Warrington Consulting“The Foundation for Success”

Central Questions

Situational Analysis

Conclusion FinancialsStrategyVision

Solutions



SWOT Analysis for VIA Rail Canada



Competitors



Alternative Projects



Vision



Target Markets



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



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



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



http://en.wikipedia.org/wiki/RFID

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



http://www.tfl.gov.uk/tickets/faresandtickets/singlefares/1053.aspx

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



Promotional Mock Ups

Order Travel Card



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



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



• Build new office in Paris, France

• Hire 8 employees– Director of French Operations

– 7 supporting team members

• Projected Cost $997,864

France Expansion



• 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



• 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



Projected Cost



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



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



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



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



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



Conclusion



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



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

via rail jmucc presentation

Documents

rail card price

rail help

rail card0

oyster card london

smart card technology

oyster card valid

orgwikirfidrail card

train culture http