CraikJones
WATSON MITCHELL VOLKER
DIM Competition brief
Young Person’s Railcar
1.0 Introduction
This case study has been written by Young Person’s Railcar (ATOM) and Crack Jones Watson Mitchell Volker with the help of The Institute of Direct Marketing. Information about Crack Jones and Young Person’s Railcar has been provided solely for education purposes and should not, under any circumstances, be used for any other purposes. Permission must be gained from the DIM and its partners prior to the use of these materials outside the context of the DIM Student Direct Marketing Competition.
All queries regarding the case study must be made in the first instance to the Dim’s Graduate Services Department on 020 8614 0272 or qraduateservices(5)theidm.com. Crack Jones or Young Person’s Railcar MUST NOT be approached without first contacting the DIM.
2.0 Young Persons Railcar product information
2.1 Background
ATOM – The Association of Train Operating Companies – is responsible for the sales and marketing of three discount Railcars on behalf of the Train Operating Companies (Tics). Atom’s marketing budget is provided by the Tics – train operating companies like Virgin, Midland mainline etc.
2.2 Product
The Young Persons Railcar (YORK) is a rail travel discount card available to anybody between the ages of 16 and 25, and full-time mature students.
The Railcar costs £20 per year, and gives a discount of a third on most train fares (some First Class, and heavily discounted Standard Class, tickets are excluded). A minimum fare applies to peak time journeys made before 10am Monday to Friday.
Even a moderate number of journeys allows Railcar holders to save money. For example, three journeys normally costing £30 would result in a saving of £30, or £10 more than the cost of the card.
Crack Jones Watson Mitchell Volker Ltd 120 Regent Street London W1B 5RY T: 020 7734 1650 F: 020 7734 1649 W: www.craikjones.co.uk
2.3 Purchasing
Most Ypres (97%) are purchased from station ticket offices. Others are purchased over the phone from Train Operating Companies (Tics), or from travel agents. At present it is not possible to purchase a YORK online.
Purchasers require:
• A passport-sized photograph
• Proof of age (birth certificate, passport, driving license or ISIS card)
. £20
Application forms are available from stations, or downloadable from the website.
3.0 Marketing objectives
3.1 Primary objective
To increase the penetration of YORK among 16-25 year-olds and mature students from 25% to 28%. This represents a direct revenue increase of £1.92 million (12%).
3.2 Secondary objectives
To increase the average number of journeys made by YORK holders
4.0 Marketing budget
4.1 Total marketing budget
£1.5 million for financial year 2006-7. (Please see 4.2 and 4.3 for mandatory budget split.)
4.2 Core marketing budget
YORK has a core budget of £170,000.
This budget covers:
• Station literature £170,000.
Station literature consists of: leaflets (including application form) available from station leaflet dispensers (£140,000); Al station posters (£30,000 print and production. Media space in stations is provided free under Tics’ contracts).
Core marketing spend as laid out in this section is a requirement of this brief.
4.3 Discretionary marketing budget
Tics are obligated by law to offer fare discounts to young people and students. They are not obligated to support the YORK with marketing budgets. Nevertheless, the Tics have historically provided ATOM with a marketing budget of c. £500,000 per annum. (Please note that this figure includes the £170,000 used for station literature.)
The other money not accounted for by station literature has in the past been used to produce and run half page/full page press executions. Sample titles include: FEM.; Nuts; Heat; Loaded, etc.
However, in the wake of research indicating that YORK ownership promotes incremental train travel, the Tics have increased the total budget voted to ATOM from £500,000 (2005-6) to £1,500,000 (2006-7).
After core activity has been taken from this budget, £1,150,000 remains for discretionary marketing activity.
5.0 Campaign requirement
5.1 Overall requirement
An integrated marketing campaign primarily to increase penetration of YORK, and secondarily to increase rail usage among card holders. Proposals should include:
• Communications strategy
• Creative work
• Media plan
• Testing and measurement proposals
5.2 Mandatory’s
Apart from the requirement to support YORK in-station (see 4.2 above), there are no media or creative mandatory’s for this campaign. You should feel free to consider the use of all traditional or non-traditional media channels (including digital and PR).
For the record, ‘integrated’ does not mean ‘matching luggage’. We do not require that one creative idea be force-fitted into different media. We do require that all communications should promote a consistent overall message.
6.0 Target audience
6.1 Customer segmentation
The customer base is segmented as follows:
• ‘Sixth Formers’ – all aged 16-18: 17%.
• Students at home aged 19-21: 14%.
• Independent students aged 19-21: 31%.
• Students at home aged 22-25: 5%.
• Independent students aged 22-25: 16%.
• Workers at home aged 19-21: 5%.
• Independent workers aged 19-21: 5%.
• Workers at home aged 22-25: 4%.
• Independent workers aged 22-25: 3%.
It will be seen at once that students and pupils account for more than 80% of all Ypres, and independent students alone for almost half.
6.2 Train usage
• 73% of 16-25s use the train at least once a year.
• 24% use the train at least once a year for work/school/college.
• 69% use the train at least once a year for leisure journeys.
• Among independent students and independent workers train usage has
remained static 2002-2004.
• Among students at home (aged both 19-21 and 22-25) train usage rose
2002-2004.
6.3 Train rejection
Reasons given for rejecting train travel (base: all 16-25s):
• Car more convenient 20% (down from 26% in 2002).
• Train too expensive 15%.
• Times/routes not convenient 14%.
• Bus/coach more convenient 12%.
• No station nearby 21%.
6.4 Competitive mode usage
Competitive transport mode usage (long journeys; all 16-25s):
• Train most often 32%
• Train at all 59%
• Car most often 48%
• Car at all 67%
• Coach most often 17%
• Coach at all 42%
Competitive transport mode usage (long journeys; YORK holders):
• Train most often 71%
• Train at all 89% (it makes you wonder about the other 11%, though)
• Car most often 28%
• Car at all 56%
• Coach most often 7%
• Coach at all 34%
Leisure journey types (all 16-25s who make leisure trips):
• Trips with friends most often 40%
• Trips with friends at all 64%
• Visiting friends most often 19%
• Visiting friends at all 41%
• Visiting family most often 18%
• Visiting family at all 34%
• Trips with family most often 7%
• Trips with family at all 31%
Why take the train if you have a car (all 16-25s)?
• Train is less stressful 32%
• Train is faster 25%
• Train is more comfortable 11%
• Train is cheaper 10%
6.5 Awareness of YORK
• Prompted awareness of YORK 60% (all 16-25s).
o ‘Sixth Formers’ – all aged 16-18: 52%. o Students at home aged 19-21: 67%. o Independent students aged 19-21: 77%. o Students at home aged 22-25: 66%. o Independent students aged 22-25: 59%.
• Prompted advertising awareness 28% (all 16-25s).
o Awareness of eligibility 54% (all 16-25s) o Awareness of savings 53% (all 16-25s)
6.6 Reasons for not purchasing YORK
• Travel too infrequently 66% (all 16-25s)
• Haven’t got round to it 14% (all 16-25s)
6.7 Target audience: who are we talking to?
All 16-25 year olds, but primarily:
• Pupils attending school, probably doing ‘A’ Levels. Horizons are just beginning
to open up, what with having a bit more money, being more-or-less legally
able to drink, legally able to have sex and so on. However, psychologically
they’re still based very much at their parents’ house. They’re attending
school (many will still have to wear school uniform, and at the best of times
schools are rather rigid and timetabled), and have been doing so since they
were four. Apart from weekend/evening jobs they’re financially dependent on
mum and dad. The chances are they still need to ring home if they’re going to
get back much after midnight. It’s not that they enjoy this state of affairs,
but at the moment they have little choice in the matter.
• Students, both those living at home with their parents, and those who attend
university in another town. Life has finally arrived: the workload is relatively
light; responsibilities are few and far between; beer is cheap. Financially they
are relatively independent, and much better off than they were when they
attended school. Many have moved to a completely different part of the
country, far away from Authority. Even those who live at home are now
‘adults’. All have substantially more control over their own life.
• Workers. Job, status and total independence (apart from having to turn up to
work at nine o’clock every morning). They’re unlikely to be well-off, but are
more likely to own a car and might well see train travel as a retrograde step.
Encompasses a wide variety of lifestyles from people who still live at home, to
poverty-stricken graduates hunting for their first flat, to 25-year-olds holding
dinner parties and going on short breaks at the weekend.
Credit:ivythesis.typepad.com
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