The Keighley and Worth Valley Railway - Book Report/Review Example

The Keighley and Worth Valley Railway Introduction The Keighley and Worth Valley Railway was built in 1867 as a privately owned single track line that runs “heritage” trains as an attraction for tourists and as rail service for the locals. The railway was mainly constructed to transport coal which was used in the textile steam mills and also served as a way of transport to the community. After having briefly closed in 1962, the railway reopened in 1968 under the control of Keighley and Worth Valley Railway (KWVR) Preservation Society. KWVR has developed into one of the countries prestigious ‘heritage’ and tourist railways and has continued to service the communities along the Worth Valley. Following the decline in visitor numbers caused by financial recession during the past six months, this report seeks to outline a marketing plan which addresses the falling visitor/tourist numbers. Strydom (2004) posits that a marketing plan is a document containing the business unit’s guidelines for marketing and allocations over the planning period. The main components of the plan will be discussed below. Situational analysis The Keighley and Worth Valley Railway is one of Britain’s best tourist attractions. The railway cuts across the Bronte country and most services are operated by steam trains. Besides being a tourist attraction, this also serves the local community. KWVR is a railway for all seasons and it appeals to all age groups ranging from kids to the adults. Since its reopening in 1968, the railway has enjoyed a steady growth in sales from the services offered to the tourists as well as the members of the local community. The railway is unique in many ways which makes it distinct from the other conventional railway lines in Britain today. The industry has great potential since it is very attractive in many ways. Besides boasting of the uniqueness of Britain’s industrial heritage, the locomotives used are still original and are steam powered which is now very rare during the history of railway in the contemporary Britain. Haworth village which is just a walk from the station has got all modern facilities which can turn around the fortunes of the railway if properly harnessed. Since there are no identified competitors in this lucrative railway business, there is only need for KWVR to focus its efforts on reinvigorating the waning popularity of the thriving railway service since its reopening in 1968. This can be done through sprucing up the image of the railway while at the same time retaining its originality which has been the source of its success until recently after the financial recession was witnessed. The resources are still available which are historic and all what is required is to make a critical analysis of the market so as to appeal to a number of potential customers. This involves reinvention of the once famous railway through exploitation of all the opportunities in its marketing environment while at the same time putting measures that can overcome the threats that may exist in the industry. It can be noted that the strengths and opportunities of the railway out weigh the weaknesses and threats that may exist in the industry. Among the strengths, KWVR boasts as one of the magnificent historical features in Britain which is still functioning and managing to attract a lot of visitors annually. The major opportunity is that new information and communication technology can be harnessed to improve the marketing communications of the company that is meant to attract more visitors following a decline in their number as a result of the recession. Fortunately, weaknesses and threats are not very pronounced for the railway and these can be overcome upon implementation of the steps recommended below. Objectives The major objective of the marketing plan is to attempt to reinvigorate the KWVR brand which has been witnessing a decline in the number of the customers following the recession that affected virtually all the global markets during the past period. The popularity and effectiveness of the railway is determined by the number of visitors who use the facilities each year. However, there has been a decline in the number of visitors in during the past six months hence the plan ought to address some of the consequences and the measures that can be put in place to avert these negative impacts. In short, the major objective is to attempt to suggest measures that can be put in place to lure more customers to use the railway facilities which also act as a major tourist attraction in Britain. Thus the main objective is to increase the customers by about 10 % by the end of 2010. Strategy Kotler (1998) suggests that a strategy is mainly concerned with how the objectives set would be achieved. The best strategy includes the following: there is need to identify the needs of the customers in a tourism industry such as providing low costs services since this is a luxury industry. This is meant to appeal to the customers through offering services that would attract them in the long run besides a downturn in the economy which may be obtaining on any particular period. Having identified the needs of the customers such as lowering the prices for the services offered, it becomes imperative to put in place the required resources to accomplish the task in place. Marketing communication can be effectively harnessed in this case so as to reach a wide range of potential customers. Tactics KWVR should employ various tactics that are meant to attract as many customers as possible. Advertising and promotion are two tasks that can be mainly used by the above mentioned organisation so as to raise awareness and attempt to create a loyal customer base. Especially during the period that was characterised by financial crisis as a result of the global economic recession that gripped the whole world, KWVR can successfully perform very well by virtue of embarking on advertising campaigns which are meant to raise awareness of the brand since there are limited competitors in the same industry. Most consumers would be enticed to change their buying habits as a result of the effects of the credit crunch given that lower priced brands are more likely to gain more popularity in the sense that they would be unique. Advertising campaigns coupled with promotional incentives will go a long way as far as increasing the number of the consumers is concerned. Time The time required to fully implement this marketing plan is about six months given that there is need to gather the views of the customers after the effects of the financial recession that gripped the world during the previous years. Whilst KWVR is endowed with the original history of the British Industrial revolution, there is still need to conscientise the potential customers about the benefits they can get from utilizing the facilities offered by the organisation. There is also need to give the employees about three months of reorientation so that they would fully know what is expected of them so as to keep them in touch with the changes taking place in their day to day operations. Evaluation The most appropriate methods which can be used in this case to monitor progress would include performance management as well as monitoring the statistics of revenue generated through sales generated by the number of visitors who use the facilities so as to check if there would be any improvement. Having decided to implement some major strategic changes to spruce up the performance of the firm, there ought to be some kind of mechanism in place that can be used to monitor progress of the organisation’s performance. In order to monitor performance of an organisation which would be undergoing a facelift in its strategic operations such as KWVR, there would be need for that organisation’s management to closely monitor the ongoing process through performance management. Performance management therefore, is the process of total quality management (TQM) programs using all of the tools including performance appraisal to ensure achievement of performance goals (Carrell, R. et al 1995). In this particular case, tools such as reward systems, job design, leadership and training should all be regarded as part of a comprehensive approach to performance. Thus, according to Carrel et al (1995), research has shown that the number one desire of HR executives is to design performance management systems to achieve business goals. Budget Given that the organisation has been receiving about 150 000 visitors per year, there is need to take at least about one third of the revenue generated so as to spruce up the image of the organisation which has been witnessing a decline in the number of visitors arriving. This budget can be used for promotional purposes meant to stimulate the market shares from the tourist arrivals as well as the commuters who use the railway for their private businesses. A budget in this case entails the amount of money that is spent by the above mentioned organisation in meeting the costs involved especially in marketing communication that is meant to stimulate positive behaviour among the targeted consumers. However, the budget about the money to be spent on this noble cause is not fixed in most instances since it would be a direct response to market forces. When there is need, there would be a tendency for higher budget allocations whilst in some cases where there would be little need, it would also mean that little would be spent on marketing communications. The market performance in most cases determines an organisations budget. For instance, the contemporary period is characterised by a financial crisis which entails that there would be little disposable income to be used by most consumers. In this case the budget on marketing communication would be designed towards meeting the needs of the customers by promoting products that may be affordable to them. All the same, if the organisation’s profitability is high, then the higher chances of having a big budget allocated to communication related issues as a way of promoting further growth of the brand. Another method available is the evaluation of the product trend. The profitability of any business in mainly influenced by the performance of the products it offers. If the products perform badly, there would be need to revise the budget upwards with regards to marketing communication as a way of stimulating interest among the potential as well as existing consumers. In the event that a product is performing well on the market, there would be need to monitor and ensure that it would not decline into loss making. This method would be more appropriate given that the viability of any business is dependent on the performance of the products offered. This is a major budgetary determinant in making decisions as far as allocations of funds is concerned. Another method that can be considered when allocating budgets is the issue of pricing of products. The issue of pricing has effects on the budget in that if prices are too high, they may lead the organisation to have high budgets especially on advertisements since they would seek to convince the potential customers that they would have value for money for buying high priced commodities. On the other hand, low priced commodities would attract customers on their own hence they would not require very large budgets in marketing and communications as is the case with KWVR. Human resources required Since this whole project is initially run by a society, it is not primarily meant for profit making purposes but preserving the historical background of the British industrial revolution which started from the textile industry. Indeed, the aspect of promoting tourism is evident but the need to do goodwill to the society in which the organisation operates should also take precedence. It is every company’s obligation to know that it is operating within a certain social set up with its own norms and values that play a vital role in maintaining the fabric of that society. Against this background, the organisation must strive to ensure that there is involvement of all the stakeholders while at the same time striving to minimise the number of workers on the payroll so as to cut the costs involved in the day to day operations of the organisation. Performance measurement An effective method of monitoring progress on the key success factors would involve a constant check on the statistics of sales. One easy and simple method of monitoring progress of a profit making business organisation would involve an analysis of the sales statistics in comparison with the previous records. If ever there is an increase in the number of sales within the current period compared to the previous periods, then it would mean that there is positive development as far as performance appraisal is concerned. In most cases the number of sales is the simple method that is used to determine the extent to which the organisation would be developing positively. A decline in the number of sales compared to the same period during the previous year would mean that the company is badly performing during the stipulated period of implementing the strategic changes that would have been initiated. On the other hand, the profitability of the organisation would also be determined by the total revenue generated from the total sales. For instance, lowering costs in the creation of products offered may result in the reduction of the overall prices of the product offered on the market. Therefore, it would be expected that this move would likely generate more sales since the prices would have been lowered hence a good method to measure performance and ultimately profitability. Indeed, more customers would be attracted to buy quality products with a lower price compared to the ones with higher prices on the market. From this assertion, it can be noted that this is one of the simplest ways of monitoring progress of the changes initiated as a result of the strategic decisions proposed for this above mentioned organisation. Task 2 Executive summary KWVR has developed into one of the countries prestigious ‘heritage’ and tourist railways and has continued to service the communities along the Worth Valley. The railway cuts across the Bronte country and most services are operated by steam trains. Besides being a tourist attraction, this also serves the local community. KWVR is a railway for all seasons and it appeals to all age groups ranging from kids to the adults. Following the decline in visitor numbers caused by financial recession during the past six months, this report seeks to outline a some of the major considerations that can be take by the management in order to address the issue of/tourist numbers as well as maintaining a record performance even during a financial crisis as the one that was recently witnessed during the past six months. Recommendations There is need for community involvement in the running of the affairs of the KWVR since they are also impacted by the operations of the organisation. Once the members of the community are involved, a strong bond would be formed and they would become part of the heritage which ought to be preserved for future generations. Members of the community must assist in the preservation of the heritage which can be used as a source of money which can in turn be used for the betterment of their community. There is also need to cover a wider geographical area in the marketing communication used by the organisation since this is supposed to be a national monument which is not treated as if it is minor. It is treated as a national monument, it would also be duly recognized the country over and its existence and significance will be put on the limelight which would stand better chances of attracting more visitors. More people will come from different parts of the country. Sponsorship is another very important aspect that needs to be taken into consideration. There is need for constant sponsorship from various stakeholders so as to ensure that the organisation does not run out of operating capital since it is being run on the basis of societal trust which may run out of funds in some instances. The involvement of the corporate world can play a great deal as far as sustenance of the organisation is concerned. Commercializing the railway is another viable option which can salvage it from collapse or from facing similar viability problems. Something that is run on a commercial basis is primarily concerned with generating profits hence it would be able to sustain itself. Products that are likely to give rise to business can be identified then they are promoted accordingly as a way of cost cutting measures where money would be allocated accordingly instead of overspending on other products whose price would be higher beyond the reach of the majority customers. This can be fully implemented after gathering the statistics about a product first and see how it performs. There is need for various promotions such as offering discounted train fares during certain occasions as this would stimulate the visitors to continue coming since they would know that they would certainly benefit somehow from taking the trip. Promotion forms a very important part of the business since it is meant to increase the number of sales as well as the number of potential customers. There is also need for the railway to be treated as a national monument as this would raise awareness among a wide range of people. Something that is treated as a national thing is often seen as more important hence the need for this attractive place to be regarded a part of the historical monuments in the country. Conclusion Over and above, it can be noted that there are various measures as outlined above that can be put in place so as to ensure that the above mentioned organisation can operate independently and profitably. Indeed, it is comprised of natural as well as historical resources that can play a big role in ensuring that more visitors are attracted annually. If the railway is commercialized, there would be more chances of attracting more customers. Task 3 Theoretically, marketing communications can be defined as the process of presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within the market target and setting up channels to receive, interpret and act on messages from the market to modify present company messages and identify new communications opportunities (Lancaster and Reynolds 1999:149). Thus, as both sender and receiver of market related messages, the company can influence customers to go for its brands as well as stay in touch with its market so that it can adjust to changing market trends. Basically, the brand name created by KWVR effectively uses some of the techniques to stimulate positive response from a target market. The SOSTAC model best illustrates the way forward for KWVR as going to be illustrated below. Situational analysis Consumers are choosy especially during the contemporary period that is characterised by a financial crisis. This means that the consumers would have less disposable income to spend on various commodities hence there would be need to identify products that can be promoted through the effective use of advertising. Products that are likely to give rise to business can be identified then they are promoted accordingly as a way of cost cutting measures where money would be allocated accordingly instead of overspending on other products whose price would be higher beyond the reach of the majority customers. This can be fully implemented after gathering the statistics about a product first and see how it performs. As is the case with KWVR, the organisation has been underperforming owing to a decline in the number of customers recorded. However, the distinct competitive advantage of the above brand name is that it is endowed with original tourist attractive features that clearly depict the historical features of the development of the textile industry in Britain. The trains operated still use steam and this act as a major competitive advantage compared to the other railway operators. Whilst focus on the segment of the customers has mainly been concerned with the local community members who would use the railway for their business such as shopping, as well as tourists, special focus should also be put on the other people apart from the children who are the major visitors to the valley serviced by the railway. Such events like shooting films can be controlled and these can be used to attract many visitors from different areas. Objectives The aim of spending money on marketing communication is to influence the buying behaviour of the targeted consumers towards a particular product. Once these needs have been identified, there would be need to carefully select the messages that are tailored to meet the needs of the consumers. In this scenario, resources would not be wasted on something that would not satisfy the needs of the customers at that particular moment. Against this background, it can be noted that the main objective of KWVR is to positively influence the visitors so that they can increase their numbers in terms of visits or using the railway which is rich in the heritage of British textile industry. The other objective is to reach as many people as possible from different geographical areas who can also contribute meaningfully to the operations of the organisation. Different tactics in communication such as the use of advertising and public relations can be implemented so as to be better positioned to attain the goals. Strategy Morden communication technology has made dramatic changes in the contemporary marketing communication landscape. Consumers now have the ability to make evaluations on their choice of goods owing to the improvements in communication technology. Marketers on the other hand are cognisant of these sweeping impacts caused by new technology which has led to significant changes in the way they carry out their business. Against this background, it is imperative to segment the targeted audiences on the basis of their age, income as well as geographical location among other things. Therefore, an integrated marketing communication plan is more ideal during the current period and is recommendable to be adopted by the chosen brand, KWVR. According to Cant (2000 p.285), an integrated marketing communication can be defined as, “a concept of marketing communication planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines such as advertising, personal selling, sales promotion, direct marketing, public relations, sponsorship.” These often are combined to provide consistency, clarity and effective communication. Mass techniques like advertising, sponsorship and publicity for instance can be effectively used as communication strategies. The marketing communication for the above mentioned company should include the effective use of advertising whose major goal is to develop as well as comprehend the sales of the product through increasing awareness just like the goal of publicity or sponsorship. On the other hand, the goal of personal selling is building primary demand for the product hence the marketing communication must be tailored in such a way that it appeals to the customers at primary level as well as secondary level to those who are already customers. Tactics The use of media in marketing communication has a great bearing on the amount of budget that would be spent. Other forms of media such as television or print media are quite expensive to buy advertising space which can have a bearing on the budget of the organisation. It would be recommended for Sainsbury to make effective use of the new information and communication technology in the form of the internet which is readily accessible to many people, which is fast and instantaneous and it is relatively cheaper compared to all other forms of media. Specially designed websites would need to be implemented and these can provide features which allow consumers to directly interact with their marketers. The fact that they are cheap would speak volumes about the extent to which an organisation would cut costs in the form of minimising budget for marketing and communication. Through the use of cheap but efficient means of communication, the organisation would be in a position to maximise the opportunities available while at the same time minimising budgetary constraints that can negatively impact on the operations of an organisation. Public relations is another effective communication technique that is recommendable to be used by the above mentioned company whose ultimate objective is to attempt to make loyal customers through the provision of relevant information and knowledge to the customers. After witnessing a decline in the number of customers as a result of the financial crisis KWVR should strive to establish goodwill with its stakeholders who involve the customers, the workers, shareholders as well as the general public. In actual fact, all communication efforts should be meant to create a positive image of the above mentioned organisation through provision of relevant information to the stakeholders. If there is mutual understanding between the railway service provider and its stakeholders, there would be high chances of attracting more customers. Action plan Much of the suggested plans will be carried by the members of the society running the railway who committed themselves to ensure that it remains functional after a six year period of its closure. Indeed, there are measures put in place that are meant to ensure the distribution of different tasks and it is expected that each active member of the society will contribute meaningfully as far as development of the railway is concerned. There is also need to involve members of the community who are impacted by the operations of the organisation so as to create a sense of belonging among them. A project running within a particular given area should have the blessings of the members of the community since they are the ones who determine its success. Having designed the different tasks to be performed by different people in the project, there would also be need to allocate the duties to be performed by various people such marketing communication which is manly concerned with disseminating positive information about the organisation. The key performance measures include a positive growth of the number of visitors who come annually to visit the area. Since there has been a decline in the number of the people who visit the area, any increase in the number would spell positive growth for the organisation. Control Controlling is meant to ensure that that there is conformity with the set objectives and the current measures of operation. During the period effecting changes to the organisation, there should be remarkable change in the overall performance of the organisation. Positive growth in terms of visitor arrivals should be witnessed since the initiative would be meant to attract more customers to visit the area and they should be closely monitored. Failure to witness this positive development would mean that there would be little change with regards to the company’s overall performance which would be a negative development. References Cant M.C. (2000), Marketing Management, 4th Edition Juta and Co Ltd, SA. Carrell, R. et al (1995), Human Resources Management: Global Strategies for managing a diverse workforce, 5th Edition, Prentice Hall, USA. Frequently asked questions (FAQ) (N.D.). Available at: http://www.kwvr.co.uk/misc/faq.htm Accessed on 01 May 1, 2010 Jackson et al (2001), Management, Oxford University Press Kotler P. (1999), Kotler on Marketing: How to create, win and dominate Markets, Free Press, London. Lancaster G. & Reynolds P. (1999), Introduction to Marketing: A step by step Guide to all the tools of Marketing, Kogan Page Patron: H.R.H. The Duke of Kent (2009). Welcome to The Keighley & Worth Valley Railway. Available at: http://www.kwvr.co.uk/ Accessed on 01 May 2010 McCarthy J.E & Perreault W.D (1990), Basic Marketing, International student Edition, 10th Edition, Irwin, Boston McCarthy J.E & Perreault W. D. (1996), Basic Marketing: A Global Managerial Approach, 12th Edition, Irwin McGraw-Hill, USA. Strydom J. (2004), Marketing, 3rd Edition, Juta & Co Ltd, SA SOSTAC Model (N.D.) Available at: http://www.12manage.com/description_smith_sostac.html Accessed on 04 May 2010 Read More