ASSIGNMENT

Bus Eireann: Marketing Programme



Table of Contents

Introduction1

Consumer Behavior and Economic Condition1

Image of Public Transport1

Transport in Ireland2

Bus Eireann2

Segmentation2

Gender3

Age3

New product and Repositioning3

Competitive Scenario4

Pricing4

Integrated Marketing Communication4

Services marketing model5

Conclusion6

References7

Bus Eireann: Marketing Programme

Introduction

This paper is basically a marketing program that aims at grabbing back what is snatched by competition from Bus Eireann. The company had enjoyed monopoly for a long time, however, faced with recessionary period and heavy marketing campaigns by private competitors have cut its share in the market. This paper discusses the economic situation, industry analysis, consumer behaviour, and proposed segmentation for Bus Eireann that will help the company devise its marketing plan and win back its share. Some example marketing campaigns and their integrated marketing plan is also discussed here.

Consumer Behaviour and Economic Condition

After the Celtic tiger era riding for more than a decade, the Irish consumers felt a deep impact of the downturn that started in 2008. Many consider the peak of this crisis in the late year 2010, when the government had to call International Monetary Fund (IMF), to provide emerging financing as the government was unable to sell the bonds in the International markets. This created a severe effect on the consumer psychology. The housing blooms in Ireland imploded. The GDP expanded by 5% in between the year 2005-2007 which fell by 3.5% in the year 2008 and by 7.6% in the year 2009 (Euromonitor International, 2012a: 1). The country stabilized its economy position in the year 2010, where the decline rate remained at 0.3%. The result of this decline was the increased unemployment from 4.6% in the year 2007 to 13.5% in the year 13.5% (Euromonitor International, 2012a: 1). The younger segment was effect very badly the age group of 25 to 29. The unemployment figures in this group jumped from 17,500 to 54,700 in between the year 2007 to 2010. The males were having more unemployment rate of 16.7% as compared to females 9.5% in the year 2010 (Euromonitor International, 2012a: 1). Wages were declined and so as the disposable income of the consumer. The impact of reduced wages was more severe in the younger age bracket between 25-29.

Image of Public Transport

The image of public transport is not very good in Europe. As it is widely famous saying of former British Prime Minister, that whoever travels by bus after the age of 26, should consider oneself as a failure (Euromonitor International, 2012b: 17). People in Ireland still avoid public transport due to its image in the public. People don't want to be seen as poor or failed. However, now the trend is changing and people are finding bus and train service more acceptable in society. One reason is the recession, people had little disposable incomes to spend and unemployment rising caused many to change their perception and accept public transport. This trend is more visible in the young age group. The people with concerns over greenhouse gas emissions, high cost of airport parking, old people on pensions, and many holiday makers are now willing to leave their ...