Marketing Essentials: National Express Marketing Analysis Report

Verified

Added on  2021/03/08

|30
|6783
|156
Report
AI Summary
This report provides a comprehensive marketing analysis of National Express, a major UK-based public transport company. The report begins with an introduction to marketing and its role within organizations, focusing on how marketing interrelates with other functional units. It then delves into the marketing mix (7Ps), comparing National Express's strategies with those of its competitor, Megabus. The analysis includes a detailed overview of the company, a situation analysis incorporating SWOT, PESTEL, and Porter's Five Forces, and the development of a basic marketing plan. The report further examines the company's current position, objectives, segmentation, positioning, and strategies, along with a market overview and competitive review. The report also discusses the company's service description and concludes with a summary of key findings. The report also highlights the external factors influencing National Express's marketing activities, including political, economic, social, technological, environmental, and legal factors, and how these factors impact the company's operations. The report also discusses the interdepartmental relationships within National Express, specifically highlighting the links between the marketing, finance, purchasing, production, and research and development departments.
Document Page
Marketing Essentials
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Contents
Introduction
........................................................................................................................... 4
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organisation.
.......................................................................................................................... 4
LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives .................................................................................. 10

LO3 Develop and evaluate a basic marketing plan .......................................................... 14

Executive summary......................................................................................................... 15

Company overview ......................................................................................................... 15

Situation analysis ............................................................................................................ 15

SWOT analysis ............................................................................................................... 15

PESTEL analysis ............................................................................................................ 19

Porter's five forces .......................................................................................................... 23

Current position ............................................................................................................... 25

Objective.......................................................................................................................... 25

Budgeting ........................................................................................................................ 26

Segmentation .................................................................................................................. 26

Positioning
....................................................................................................................... 26
Strategies
........................................................................................................................ 26
Market overview
.............................................................................................................. 26
Competitive Review
........................................................................................................ 27
Document Page
Service description ............................................................................................................. 27
Conclusions......................................................................................................................... 28

References .......................................................................................................................... 29
Document Page
Introduction
Marketing is regarded as one of the most systems than business entities as it
determines its core performance. The marketing activities are connected to a perfect
understanding of the industry's fundamental needs and requirements and patterns. It is
also examining the company's internal capacity to formulate an effective strategy and
marketing mix to meet market requirements and achieve the organisational goals of
keeping the relevant loyal customer. The creation of the brand's image by expanding
the registered trademark to the targeted audience by various means is also identified as
a marketing strategy. Based on the different marketing facets, National Express was
highlighted as a UK-based company to be explored. (
https://www.nationalexpress.com/)
National Express is one of the largest public transport companies in the UK.
Birmingham is headquartered in Birmingham and operates throughout the UK by train,
coach and tram. In addition to the UK, it also works in Europe, the United States and
Canada being a multinational company. The company has organized long-distance trips
in Europe and travels to Morocco. At the London Stock Exchange, the company
National Express is listed and provides services to the public for 45 years. National
Express recorded revenue of approximately £ 2,100,000 in 2017, of which £ 210 million
came from operating income. The company has about 46,000 employees. The
foundations of National Express were laid in 1972 when it was integrated into the
National State Company. (
https://www.nationalexpress.com/en)
LO1 Explain the role of marketing and how it interrelates with other functional
units of an organisation.

This segment of the analysis discussed the leading positions of marketing in
discussing National Express company viewpoints and the roles and obligations of
marketing in the larger organisational context.

Marketing is the management process through the concept of services and goods for
consumers. Marketing means the art of growing, delivering and discovering offers that
represent value for customers. (Review and Silk, 2006)
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
According to Kotler "Marketing is an organisational function and a set of processes for
creating, communicating, and delivering value to customers and managing customer
relationships in ways that benefit the organisation and its stakeholders". (Kotler, 2013)

According to Kotler's theory, marketing's primary responsibilities in the National Express
company are to retain and grow its customers. This process will be supervised by the
marketing department, starting from the connection between the company and the
clients, an important one for National Express development.

National Express promotion management's primary responsibilities are crucial within the
company, as this department can rigorously determine the National Express target
market. From a certain point of view, this department can show the company's
customers, offering what they want.

On the other hand, the department can maintain and increase the connection between
the company and customers by capitalizing, delivering and human activity. (Faull, 2019)

The management of new entries in the National Express company will emphasize a
process of discovering and forecasting customers' needs and how they will satisfy the
need of customers with the use of the market mix strategy.

The first and most important role of marketing management is to think about what
customers want. As a result, the company National Express compared to other rivals
(Renold, Terra Vision, Go-Ahead, Arriva) sets it is objective a particular market of
customers, presenting high quality of customers. Also, the company envisages a new
market for the transport industry.

The second essential role of marketing management is to form and introduce marketing
activities, thus giving National Express customers momentum. The actions represent a
marketing mix and include price, product, place and promotion and are called 4Ps.
Document Page
Source: https://www.businessstudynotes.com/
Responsibility and role of marketing in National Express in a different market
environment

In the National Express company, there are two different types of indoor business. The
first organizing activity is B2B (business to business) and the second B2C (business to
client) (Dibb and Simkin, 2008)

Within the National Express company, the transport industry has extensive activities on
the B2B market. As a result, National Express contracts to collaborate, other small
transport companies for national transport that meet its objectives. Along these lines,
the company negotiates with small transport companies the value and quality of
services. The quality of the services provided reflects its reputation because National
Document Page
Express promotes the best quality of transport services. But National Express will be
able to negotiate prices because they will give small companies a continuous business.

For B2C, National Express provides services to customers who will use its services over
some time. From the B2C point of view, the customer will not negotiate the price or
quality of services. The National Express company's advantage is that it offers
customers quality services at affordable prices, which they do not find in competitors.
(Naumovska, 2017)

External environmental factors may influence national Express's organisational
marketing activities.

The role of the marketing department is to systematize strategic activities with the
National Express company. This activation will guide the company to find out what
customers want and to create advertising. National Express will launch a service and try
to determine if the service offered is satisfactory for customers. (
Howell, 2015)
The second essential marketing activity is to observe the movement of competitors.
This activity foresees the plans of the competitors. A market leader, it is necessary to
develop, innovate and update these measures before the competitors. (Jain, 2013.)

National Express is a large company that uses intermediaries to operate for its
customers' benefit nationally and internationally. Suppliers are essential in the transport
industry, offering services that align perfectly with the company's objectives. These
represent crucial activities in the marketing operation of National Express, representing
the company's external environment.

Marketing elements that affect National Express in a broad external environment
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
In the chart above, we have listed several external factors that influence National
Express and its operating in the current market. The marketing plan needs to consider
the company's strategy regarding the external environment.

Police factors can impact the company and its operations due to Brexit because there is
legislative uncertainty.

In conclusion, the stabilization of legislation in tourism and the transport industry could
impact the company. That can happen when moving from one country to another or
those who want to enter the UK. Customer losses could suffer because investors and
tourists could avoid the UK.

Ethical and environmental factors are essential today because customers will consider
CSR's social responsibility approaches through the environment and society.

National Express

Technological

Innovation affecting:

o Services

o Process

o Distributions

o Marketing and
administration

Economic

Competitive

o Market structure

o Taxation

o Government policy

o Interest rate

Ethical

o CSR policy

Political/Legal

o EU Brexit

o National and local
government

o Regulatory bodies

Ecological

o Climate change

o Services disposal

Socio-cultural

o Demographic

o Current issues

o Culture
Document Page
As a result, National Express will continue to increase its sustainability operations using
technology to reduce environmental pollution.

A market leader, innovation will be needed by expanding the market segmentation
where it operates. The company will influence and attract as many customers as
possible, thus increasing its profit.

A continuous change, technology is an essential product where the company will
simplify and satisfy its customers' interaction. An effective technology will increase the
company's profitability.

This process also has a disadvantage. Namely, it is reflected in a significant investment
with high prices, because the technology is continuously updated.

The company's supply and demand may be affected by inflation or economic reviews.

The marketing department to another department in the company

The marketing department is in direct contact with other departments in National
Express. The essential links that will guide the business's profitability are the
arrangement of the development, research, procurement, and finance departments with
the marketing departments to achieve the company's common goal.

The financial department in National Express will also take care of managing the
company budget for obtaining profit. Also, the attribution pays the company's salaries
and expenses, as well as the archiving of the accounting documents,

The marketing department will innovate and develop the activities of National Express,
which involves the financial budget. For example, due to a certain promotion period, the
finance department will carefully observe the marketing plan to ensure that the company
will make a profit. If the marketing research decides to develop new services or
innovate, the finance department will have to agree with the respective activity costs.
(Baines, 2013)

The purchasing function emphasises the fixing of service prices. But this function
without the support of marketing researchers on competitors can reduce the elasticity of
the company. Marketing will add value to services by observing the quality of services,
Document Page
rather than the cost. In conclusion, all these activities must establish long-term links with
collaborators and suppliers. (BRASSINGTON and PETTITT, 2012)

All production activities must be accompanied by various marketing guidelines
regarding desires and needs. Due to standardisation, the production department wants
to disagree with the marketing department. To make specific changes in the
standardisation of personalised service, the two departments will have to align. B2B
between the National Express company and the collaborators or suppliers report a good
connection because it prefers a personalised service for its business. (GROUCUTT and
HOPKINS, 2015)

The development and research department will need more time to analyse and develop
services for the company.

All engineering activities are responsible for the company's development because they
can predict how the company can provide a better job.

In conclusion, the link between these functions is essential because development and
research will focus on selling services and sometimes omit consumer needs.

Marketing has expectations about the usefulness of performance and immediate
research and development, which is very important to be a market leader or highlight
the advantages of services and sales strategies in contrast to the functionality of
products. (KOTLER and ARMSTRONG, 2013)

LO2 Compare ways in which organisations use elements of the marketing mix
(7Ps) to achieve overall business objectives

According to Kotler, the marketing mix is a combination of variables that can support
and guide the company to influence customers. There are four controllable variables, as
follows:

o Promotion

o Price

o Place
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
o product
Nowadays, an additional 3 P has been added to complete the marketing mix, namely:

o people,

o process

o evidence.

For the development and innovation of a marketing plan, National Express will compare
7P with market activities with Megabus.

Source:
https://marketing-insider.eu/
Elements of the
National Express Megabus
Document Page
marketing mix
Product

It is a well-known transport
company that operates in
over 900 locations. The
company offers 15-20%
discounts on each trip to
attract a larger number of
customers.

Megabus offers travel
services for private and
commercial clients. Their
services are quite popular
in London. To increase
sales and to provide
facilities and quality for
customers, they will
develop their marketing
strategies. That is the most
crucial goal of the
company.

Price
Being a very stable
company, it offers its
services at high prices, and
this is because consumers
are loyal.

Mega bus's pricing strategy
is unique because it has a
wide range of discounts for
its staff and customers who
purchase tickets online.
One ticket's cost will be
calculated depending on
the distance the customer
wants to cover, and loyal
customers have discounts.

Place
The company offers
services at high prices,
which people with money
can afford, and that is why
they make their services
available in cities.

Megabus wants to develop
in other locations and
evolve with the website's
help to facilitate the
attraction of customers. The
company provides
chevron_up_icon
1 out of 30
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]