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Luggage Transport Services to Customers- London Shippers

University: European Business School London

  • Unit No: N/A
  • Level: Undergraduate/College
  • Pages: 10 / Words 2616
  • Paper Type: Assignment
  • Course Code: MKT301A
  • Downloads: 24
Organization Selected : London Shippers

SECTION ONE

Business Summary

London Shippers is a start-up which will provide luggage transport services to customers from London to Romania. It requires thorough market research as this business is highly profitable and there are firms competing for market share. Well-defined strategies will be implemented by company so that customers are satisfied in the best manner possible by delivering faster and efficient services. This requires that firm will be able to ship luggages of travellers from door to their destinations.

Business Aims

The aim of London Shippers is to deliver faster luggage of customers from their doorstep and reach safely to their destinations. This would be accomplished by offering reasonable prices, economic sound services by maintaining full satisfaction level of customers.

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SECTION TWO

Describing core product/service

London Shippers will be operating on simple idea that travellers must enjoy the journey as much as destinations. For accomplishing enjoyable travelling experience, it should not involve carrying luggage. This can also lead to lost of luggage in transit in air plane or by road. Travellers move to airport for check-in their baggages and end up in a long queue. This can lead to frustration in start of trip and this can be resolved by London Shippers. The firm will pick up luggages at the door of customers and sent the same to destination, thus, providing healthy door-to-door services in effective manner (Chester, Ryerson and Horvath, 2017). This means that luggage will be shipped to destination even before travellers reaches by. It will provide satisfaction to customers as faster services will be offered to them which will make them loyal.

Explaining USP of product/service

USP (Unique Selling Point) of London Shippers is “When it is absolute, positively luggage has to be there even in overnight”. This slogan or USP of firm clarifies that it will deliver the services to customers in overnight as well as commitment made to customers cannot be broken. Faster and before-time delivery will be made leading to impart maximum customer satisfaction in the best way possible. This will provide consumers with enhanced services and firm will be able to attain desired profits with ease. Thus, customers will be imparted with convenience services at reasonable prices.

Describing any other product/service for selling

London Shippers will provide luggage transport services in order to satisfy customers. For enhancing customers for more services, bicycle and bike shipping, golf clubs and skiing sports equipment shipping will also be imparted leading to attainment of higher level of satisfaction at affordable services. This will be beneficial for customers who can manage luggage on their own but these type of shipping cannot afford (Zhang and et.al., 2017). Thus, along with personal luggage services to customers, firm will offer services of shipping like bicycle, bike, golf clubs, skiing equipments for travellers which will prove to be fruitful for company in terms of higher profits.

SECTION THREE

Describing typical customer

Customers of London Shippers will be particularly the travellers who wish to travel from London to Romania. The major cities of Romania will include Bucharest, Cluj-Napoca, Brasov, Timisoara, Sibiu, Constanta, Oradea and other cities. This means that luggage will be picked up from the door of customers which will then be shipped to hotels in London. This will eliminate long queues for check-in on board at the airport and luggage will reach to address of hotel within stipulated time being promised to travellers. While, for returning to home from London, luggage will be picked and reach safely to cities in Romania where customers have their home.

Where are the customers based

The customers are based in Romania consisting of all cities.

Explaining the branding and promptness of customers to avail product/service

London Shippers has a distinct brand name that will be build up in a few years of operations which will make customers to get loyal with it. Branding helps to get major competitive edge over the rivals which benefits company in a lot for making its sustaining for a longer time period in the market (Litman, 2017). It can be analysed that brand will provide customers to get desired services in a better manner. Customers will become loyal to brand. Promptness will be made and customers will be attracted through implementation of penetrating pricing strategy by which customers will become loyal and avail services leading to attainment of profits.

SECTION FOUR

Explaining market research

The market of luggage transport needs to be analysed so that strategies can be made according to it. Freight Air Transport Industry and Road Transport of UK is operating on a large scale by delivering door-to-door luggage services for maximising customers' satisfaction level up to a high extent. It is required that firm should provide effective services so that profits may be attained from the market. More reliable and faster deliveries and less damage during transit need to be make so that London Shippers may be able to accomplish profits without any difficulty.17

SECTION FIVE

Competitor Analysis

Competition has become fierce in the luggage transport industry. It is required to apply with well-defined strategies for outreaching customers up to a high extent in order to capture market in the best manner possible (Havenga, Simpson and Goedhals-Gerber, 2017). The major competitors of London Shippers are Eurosender, Excess Luggage and Luggage Forward which provides quite effective services at cheapest available prices for attracting customers with ease. They offer the cheapest shipping of luggages from Romania to London and round-trip as well. They have partnered with transport and logistics partner leading to satisfaction level of customers. For getting customer attention to firm, London Shippers will provide services at lower prices to them for making them loyal to the brand.

SECTION SIX

Marketing strategy

Product-

Firm will offer luggage transport services to customers from London to Romania which will consists of travel baggages so that they not have to wait for long at a queue at airport (Barry, 2017). Moreover, road transport will be also be done from taking luggage from doorstep to transit to destination.

Place-

Place of firm's office will be in London and making out the services to people of Romania by which they can enjoy their travelling experience in the best manner possible.

Price-

The price is main element in company by which customers decide to purchase services or not. Since, London Shippers is a start-up, penetrating pricing strategy will be applied for gaining customer base and attaining good share in the market (Marketing strategy. 2018).

Promotion-

It is required to initiate promotions so that customers may be able to know services of firm. For this, use of social media marketing and TV advertisements will be made with the help of which more customers will come to know about offerings of firm.

SECTION SEVEN

Operations and logistics

Premises

Premises will be based in London and will be an owned enterprise. In simple words, no rental payments will be made leading to save on costs.

Equipment

The equipments will be needed such as forklifts and industrial equipments which will be used for transferring luggages to shipping trucks. Double and four axle trucks will be needed which will provide timely services to customers by reaching luggages at their respective nation.

Transport

The transport will be needed to ship the luggages in a better manner. Air transport and road transport will be made as per the preferences of customers in the best manner possible. This will offer convenience to travellers as shipping will be done before-time by keeping promises to customers (Weske, 2012).

Legal requirements

Legality is required for making uninterrupted operational activities in a better manner. It can be said that UK Civil Aviation Authority and road transport authorities will be complied with. This will make sure that all legal requirements are made so that company may be able to serve to customers without any difficulty.

Insurance requirements

Insurance will be provided on the luggages. This is required as during the transit from Romania to London and back-forth, baggage may go missing or might get damage. Thus, in order to make insurance of luggages during transit, local insurance company will be partnered with and insurance requirements will be met quite effectually (Telecky and Cejka, 2017).

Management and Staff

The staff will be employed for providing the necessary services in the best manner possible (Roberson, 2018). 50 employees would be hired for managing operations, delivering agent, pick-up personnel from doorstep of customers. Thus, desired productivity will be met and profits will be attained in a better manner.

SECTION EIGHT

Costs and pricing strategy

Product/service name

Luggage shipping

Number of units

100

Product/service components

Includes travel baggages of customers

Total Product/service

Travel luggages

Cost per unit

20

Price per unit

60

Profit margin

40

Profit margin (%)

0.4

Mark up (%)

40

SECTION NINE

Financial forecasts

Month 1 2 3 4 5 6 7 8 9 10 11 12
Sales forecast
Product/service 10 20 25 30 40 45 50 60 70 80 90 100
Costs forecast
Product/service 2 4 3 2 4 3 4 5 4 2 2 3
Total profit 8 16 22 28 36 42 46 55 66 78 88 97
Break Even Analysis
Particulars Amount
Fixed cost 20000
Price per unit 60
Variable cost per unit 10
Contribution per margin (Price-Variable cost) 50
BEP in units (Fixed cost/Contribution margin) 400

Cost Table

Cost Item

Inclusion

Total cost (Per unit)

Labour

Includes salaries of employees

5

Trucks

Cargo shipment trucks

7

Fuel expenses

From doorstep to destination

6

Insurance expenses

Transit safety

2

Total cost

20

Build business session

Business concept

London Shippers is a start-up which will provide luggage transport services to travellers without hassling upon their luggages during trip.

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Marketing Plan- Concepts

1. What is the market for product/service?

The market is cities of Romania such as Bucharest, Cluj-Napoca, Brasov, Timisoara, Sibiu, Constanta, Oradea and many more.

2. How big is the market and potential customers to reach?

Romania has over 1.96 crores of population and customers will be reached to all cities.

3. Is product concentrated on specific customers?

The product is concentrated on specific customers.

4. Who are main competitors?

The competitors are Eurosender and Excess Luggage etc.

5. Is product/service easier to use than competitor's ones?

Yes, they are cheap.

6. Does additional benefit be provided to customers at same price?

Additional benefits of shipping of golf clubs, skiing equipments and two-wheelers etc.

7. What is it about customer service which will cause customer to give it a chance to buy?

Cheap services with higher quality of services.

8. How down costs will be kept for beating prices for competition?

Market penetration will be used for keeping prices down.

9. What makes product/service preferable to rivals?

The route of Romania to London as competition prevails.

10. What methods are used by competitors to market their product/service?

Word of Mouth advertising method is used by them.

11. What marketing methods will be chosen for making customers aware about product/service?

Social media marketing method and TV advertisements will be chosen.

12. Writing an Elevator Pitch for firm

We are London Shippers dedicated to provide luggage transport services to customers from Romania to London for satisfying people during trip. Passion is to help people for hassle free trip.

Marketing Plan

1. What problem does product/service solve for potential customers?

The problem of waiting in queue for check-in baggages at airport.

2. Why product/service solve problem better than competition?

Convenience of providing services solves problem for customers better than competition.

3. What is emotional impact that product/service has on customers?

Loyalty by offering services as per the commitment made to people.

4. What methods will be used for promotion?

Social media marketing, TV advertisements etc.

5. How much profit is expected to make single sale?

Profit of 40 will be made on a single sale by incorporating fixed, variable costs.

6. How many items are needed to be sold for getting back the money spent on promotions?

Break even sales is 400 units for getting money.

7. What is the initial time frame for promotions planned for running?

The initial time frame is of 3 weeks for promotions of business.

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