Jamal Mon DesirMatthew NealeRia Halai

Corporate Reputation Management

Eurostar

Table of Contents

Background...............................................................................3Travel and Tourism................................................................................................3Transportation.......................................................................................................3

Eurostar....................................................................................3Communications....................................................................................................3Financial summary................................................................................................3

Situation analysis......................................................................4PESTLE...................................................................................................................4Porter’s 5 Forces....................................................................................................5Media coverage analysis.......................................................................................5SWOT..................................................................................................................... 6PR Communication Implications............................................................................6

Programme of Action.................................................................7Business objectives...............................................................................................7PR/communications objectives..............................................................................7Overall Message Strategy......................................................................................7Background...........................................................................................................7Stakeholder Map....................................................................................................8Key Target Publics.................................................................................................8Gantt Chart..........................................................................................................14References...........................................................................................................14

Background

Travel and Tourism During the economic downturn, Britain’s travel and tourism industry1 saw 48.8 billion pounds of revenue in 2009, 4 billion pounds less than 2008. These numbers reflect foreign tourists entering the country as well as UK consumers travelling abroad, both of which declined in 2009. The industry accounts for roughly 5-8% of the nations GDP.

TransportationAirlines, rail, and ferries compose part of the travel and tourism sector but also occur in the transportation sector. This narrower industry includes freight, toll roads, public transport, etc. The transportation industry in the UK was worth 30 billion pounds in 2009.

EurostarEurostar currently operates in a very specific niche of the transportation and travel and tourism industries by providing an alternative to air/ferry travel to the European continent via Paris and Brussels. It is also one of the few high-speed trains in operation in the UK. Eurostar has gained favour amongst consumers for its eco-friendliness, city centre destinations, and convenience in light of heightened airport security measures.

Eurostar is jointly managed and operated by the national railway companies of France and Belgium, SNCF and NMBS respectively, and Eurostar UK Ltd (EUKL), a subsidiary of London and Continental Railways (LCR) which is owned by the British Government. The company has undergone several management changes and at one point National Express and British Airway owned shares in EUKL. The current arrangement ends 1 September 2011 when the company will operate as a single corporate entity, Eurostar International.

Communications Eurostar boasts a 12-member internal and external team that manages communications in the UK, France, and Belgium. Open Road Communications maintains the company’s public affairs while Freud Communications handles consumer public relations.

Financial summaryDespite the economic downturn, Eurostar saw it’s first profit of £63.5 million in 2009. Part of this is be attributed to the fact many travellers now seek cheaper destinations closer to home. (Times, 2010)

1 which encompasses; transportation (rail, ferries, airlines); travel retail; accommodations; car rental; health and wellness; and tourist attractions,

2009 2008 2007

316,200 316,200267,200

63,500

-146,500-200,900

Financial Summary

Turnover (in 000s) Net Profit (Loss)

Situation analysis

PESTLE

Political Con-Lib Budget Cuts/VAT Rise

UK Governments aggressive budget cuts and subsequent rise in VAT are likely to have a knock-on effect on the amount of consumer’s discretionary income. Travel and tourism can expect to be sharply affected, as holidays are usually first to be re-evaluated in times of hardship. (BBC, 2010)

UK Government Invests Rail infrastructureOver the next four years £14 billion will be invested in updating Britain’s rail network including £750 million dedicated to expanding high-speed rail. This provides Eurostar the opportunity to provide services beyond London and form potential partnerships. (Willis, 2010)

EU Air Travel compensationEU law sets forth guidelines for how passengers should be compensated in the case of delayed or cancelled flights. The agency is concerned with how strictly these laws are being adhered to and how informed customer’s are of their rights. (BBC, 2005)

Ministers set out reform of travel industryAviation Minister, Teresa Villiers, seeks to reform the Air Travel Organiser’s Licensing scheme. She also argues that BAA should be better prepared for snow. MP Nick Boles has also been very outspoken about improving the UK’s winter travel conditions. (BBC, 2011)

EconomicQ4 GDP contracted by 0.5%

The shrink brings the governments austerity measures into question and raises concerns over a possible double-dip recession. (BBC, 2011)

Rail far risesMany consumers are angry over this years rise in rail fair. This has several potential implications to consumer spending and/or travel habits and revenue of Britains rail industry. (BBC, 2011)

SocialRailway RenaissanceGrowing concern for the environment and the high price of air travel has sparked a revival in railway usage. (Milmo, 2011)

Customers stranded by disruptionsMany consumers who have been stranded are irate over the travel industry’s inability to cope with winter weather conditions. (BBC, 2010)

Technological

De-icing technology adapted for railDe-icing technology, which has been long been in existence for aircraft, has been redeveloped to suit the rail industry. Implementing this technology may be considered as part of a wider crisis management strategy. (Railway technology, 2011)

Porter’s 5 Forces

Media coverage analysis

Winter delays – Eurostar has been criticised for its handling of several winter crises. Recently, a thousand passengers were stranded outside St. Pancras station. In 2009 trains we’re stuck in the Euro Tunnel for hours. The company was especially criticised for ignoring Twitter comments during the crisis and not communicating with customers. Press releases by Euro Tunnel and Eurostar placed the blame on one another.

Eurostar as alternative – The firm receives a notable amount of press in the winter as an alternative to air travel when delays are at their peak. However, the excess demand often strains the ability to deliver service. Eurostar’s increase of service during the Icelandic volcano crisis last spring provides a notable exception to this and highlights the firms competence as an alternative to air travel during crises.

Lawsuit – Eurostar’s bid to purchase carriages from German firm Siemens for it’s new fleet has ignited a protectionist row with its current French supplier Alstom and the French Government. The complaint has been heard in UK and Belgian High Courts and the EU Commission.

Competition – High-speed carrier Deutsche Bahn is planning to offer services from London to Frankfurt effectively ending Eurostars monopoly on passenger services to the continent via Euro Tunnel. Trenitalia has also expressed interest in offering services from London to Italy.

Intensity of

rivalry -HIGH

Threat of entry - LOW/RisingSafety approval for Euro Tunnel and cost of infrastructure make market entry difficultEU liberalisation of rail allows more access to competitionHigh profit potential marked by Eurostar's 230% profit increase

Supplier power - MEDIUMLow concentration of suppliers (carriages, EuroTunnel)Labour unionsLow threat of forward integration

Buyer Power - LOWCustomers dependent on Eurostar's monopolyThreat of buyer switching to alternativesDifferential advantage as only transcontinental passenger rail service

Threat of substitues - HIGHPrimary competition from low-fares airlinesOther alternatives include ferry, coach, airlines, car via Euro TunnelLow buyer switching costs

Expansion – In response to the impending competition, Eurostar is devising plans to expand to other destination in the UK and the continent.

Rebranding – Ahead of plans for expansion and competition Eurostar seeks to rebrand itself.

The Times – Eurostar receives an extraordinary amount of press from The Times throughout the year, which often publishes articles on weekend/short breaks to the continent with discounts for Eurostar.

Editorial mentions – Eurostar benefits from great awareness year round as it’s mentioned several times by name in the narrative of many articles.

SWOT

Strengths Weaknesses High awareness from monopolistic

position 70% of London-Paris, London-

Brussels trips are through Eurostar (Euromonitor, 2010)

Heavily promoted as alternative to airlines

Made first profit during economic downturn

Habitual issues with winter service Poor customer service during delays Contingency plans and crisis

management have been questionable Large amounts of bad press Mostly unprofitable

Opportunities Threats Expansion into other geographic

markets Improve customer communications Offer greater value to customers Capitalise on consumer’s limited

budget by promoting cheaper holidays to the continent

Impending competition Poor market confidence Liberalisation of rail Reduction of consumer discretionary

income

Key Issues (selected issue in bold) Protectionist row with French government and Alstom Threats of competition Winter service delays

PR Communication ImplicationsIssues arising from winter weather have become commonplace for Eurostar and the travel industry on the whole. Some scientists believe Britain’s unusual winter weather is an effect of climate change and will continue to worsen. The debate of how the country may better prepare for increased snowfall and the necessity of such plans is on-going.

Public relations can address The lack of consumer confidence in winter travel by adopting better crises

management Lost profit that arises from crises Help rebrand Eurostar ahead of forthcoming competition

Programme of Action

Business objectives Increase Q4 profit by 5% year-on-year for 3 years Increase customer satisfaction by 10% over 12 months Maintain dominant market position

PR/communications objectives Improve stakeholder opinions of Eurostar over the next year Build customer confidence amongst customers before winter 2011 Position Eurostar as forward thinking, customer-centric brand amongst UK travellers

Overall Message StrategyThe overall message strategy of this campaign is to design and adopt a series of industry-specific crisis management policies and customer charters by partnering with competitors and suppliers to increase consumer confidence in Britain’s travel industry, especially during winter travel.

BackgroundThe frustrations of Eurostar’s customers over the past winters have not occurred in a vacuum. The issues arising from snowy conditions have affected the industry at large. To aggravate the matter, airline passengers may not be fully aware of their right to compensation dictated by EU regulation. Furthermore, stories of insolvent tour operators have become more commonplace in the media. We believe Eurostar and its competitors and suppliers can use their experiences and organisational knowledge to pool their resources to spearhead a solution-specific alliance to improve UK travellers’ experiences.

Stakeholder Map

Key Target PublicsProfile Rationale

Economic StakeholdersCustomers

Travellers around the UK but primarily those centred in London, the Home Counties, and large metropolitan areas.

Customers are the centre of this programme. None of the objectives can be achieved without consumers and improvements cant be made without their input

Employees Frontline and ground staff who work

primarily with customers May be resistant to policy changes Often occupy the most stressful

positions

Need to understand and buy into the programme for it to be most effective.

Giving employees the opportunity to provide input increases the likelihood they will take ownership and thus increase buy in.

Competitors and Suppliers (where applicable) Large companies that operate in the

travel/tourism/transportation industries. Particularly those faced with customer complaint issues during winter travel.

Airlines, BAA, ferry operators, rail carriers, Network Rail, Euro Tunnel

To affect positive change throughout the travel industry we will require cooperation with some of our suppliers, our competition, and their suppliers.

Influential StakeholdersMedia Broadcast and print media targeted to

general public (e.g., BBC, The Times, The Guardian)

Business print media (e.g., Financial Times, The Economist)

Industry trade press (e.g., European Rail Review, Airline Business)

Media relations are a central focus of the programme used to increase awareness and influence behaviour of other target publics.

Advocacy and Pressure Groups, MPs Entities that have credibility with

consumers at-large (e.g., Campaign for Better Transport, Passenger Focus, Theresa Villiers, Nick Boles)

Are seen as a powerful driving force of change for the benefit of the public/ consumers

Leveraging the support of MPs and advocacy/pressure groups can be used to add legitimacy to the programme and increase buy-in from consumers, competitors, and suppliers

Customers – Message: We’re listening; how can we provide a better experience for you?Objectives

Create awareness and build excitement of alliance amongst majority of UK travellers Promote awareness of the alliance’s customer charter and policies

Specific Media and Activities Launch barebones grassroots-style website that offers consumers the opportunity to

share their good and bad travel experiences. Should be aesthetic without being branded. The new Eurostar logo may be placed in bottom corner before its official unveiling to coincide with rebranding (assuming this logo is iconic and dissimilar to the current Eurostar logo). Advocacy/pressure group and MP logos may also be used to add legitimacy and credibility.

Launch the site with originally sourced sample content. Content may be uploaded as public posts, video (preferred), email, or postal mail. Site will contain “our favourites” (carefully screened), a page stating what’s to come with some detail of the initiative, and a link to subscribe to email updates.

Seed the site to general media outlets to increase awareness and generate excitement. Social media will be used to help the campaign spread virally. Submissions may be fed back into media to encourage more consumers to contribute. If responses are low, corporate PR-led advertising (posters in airports, train stations,

bus stops, underground) may be used for awareness; however, this should remain unbranded.

Re-launch branded website introducing the initiative with more detailed information. Include a link for users to tell their favourite carriers to join the initiative.

General literature (including PDF) can be provided by post for customers who prefer information in alternative format

Role of PR Managing risk: this campaign plays on consumer’s delight in complaining (especially

when seeing others complain). As submissions accumulate it is likely that a disproportionate amount of content will be negative. This presents a risk of intimidating competitors and suppliers that may lead to reluctance and bad publicity. This can be managed by enforcing rules such as “no name calling”. Instead, users should name the organisation in question using a drop-down menu during submission and only the PR team and that organisation will see this information. However, users will be encouraged to “name call” if their submission is positive.

Establish and maintain friendly inviting tone as a ‘corporate’ tone may create an unwillingness to submit content.

Source videos and comment posts for initial website launch. Seed website launch to media without revealing the Eurostar identity. Screen submissions for appropriateness before posting to website. Monitor and maintain all incoming points of contacts (e.g., email, Facebook, etc.). Request media release forms from users for content to be submitted to media. Monitor engagement (number of submissions, unique visitors, etc.) over the duration

of initial launch to see that goals are being met and employ contingency strategy, if necessary. Monitor media to ensure message is being disseminated.

Produce information for website, email lists, and general literature. Submissions should be evaluated as part of wider diagnostic research to identify

grievances and causes to be used in drafting a customer charter.

Aim of evaluation Proposed tools for measurementFormative

Awareness - Are media activities working? Number of unique visitors to websiteEngagement/Excitement - Do consumers Conversion rates. Percentage of members

agree with and support the initiative? submitting content (Success=50%). Email list subscriptions. Average number of video/page views per visit per member (Success=5). Facebook “shares” and “likes”.

SummativeDo consumers understand the customer charter and believe it’s fair? Do they feel more confident to travelling with alliance members?

Survey website members. Success=40% yes.

Have customer’s negative views changed about their mentioned organisation after joining the alliance?

Survey members who have submitted negative content about an alliance member. Success=50% yes.

Employees - This change can’t happen without you. How can we make you better prepared to do your job?Objectives

Communicate the rationale of new customer standards Generate 60% employee buy-in of the initiative before winter 2011

Specific Activities and Media Undertake organisational research in the various industries represented in the alliance

via focus groups and interviews. Grouped by similar positions, levels, and industries. Produce a video featuring the various company’s CEOs, MDs, and/or

Communications Directors explaining the rationale and its implications for employees and the company

Briefings with reporting managers on events to take place in the following months with regards to training and implementation, general literature will be provided explaining the aims and objectives of the taskforce

Produce quality guides for specific roles during crises and guidelines. Extranet will provide testing and serve as a continuous point of reference for

employeesRole of PR

Produce posters and leaflets to invite employees to participate. If overwhelming response, establish a selection criteria (possibly random).

Arrange locations and times for focus groups. Monitor response rates across companies and industries to ensure good representation

and cooperation. Develop questions for focus groups. Organise production of video. Dates, times, production company, venue. Set tone and

filming/production/editing standards to reflect the values of the alliance. Arrange one-to-one interviews with middle management, if necessary. Communicate with company HR departments. Prepare literature, establish tone, use of photography Determine necessary content for extranet and quality guides

Aim of evaluation Proposed tools for measurementFormative

Engagement – Are employees signing up to participate in research?

Monitor response rates against number of employees. Success = 20%

Summative

Do employees buy-into and understand the purpose of the alliance?

Survey via extranet. Success=60%

Do employees understand their role in a crisis?

Monitor test pass rates via extranet. Success=85% first try pass rate.

Competitors and Suppliers - A revolution is amidst. Will you be part of it?Objectives

Persuade competitors and suppliers to join and build the allianceSpecific Media and Activities

Direct mail to key organisation decision-makers sent ahead of website launch and media activities with link to password-protected website with brief presentation outlining the overall aims and benefits of the alliance. Each recipient will receive unique login credentials. An online booking system will allow the recipient to schedule a meeting with a representative for further discussion.

Personally invite decision-makers of market leaders (e.g., British Airways, National Express, Virgin Atlantic) to meet and discuss. Their participation may influence other competitors and suppliers.

After the consumer website launch, invite decision-makers to use their unique login to view content being submitted about their company.

Leverage support by advocacy groups, pressure groups, and MPs to increase credibility.

Ensure robust coverage of consumer-targetted media activities to guarantee decision-makers are aware of consumer’s interest and demand for the initiative.

Articles in business and trade press highlighting the benefits of the alliance and its implications for the potential participating companies and industry to attract decision-makers.

Send follow-up invitations to non-responders ahead of SGM. SGM with interested company representatives to discuss goals of the alliance its

implications for their consumers, company, and industry. Provide research reports and personalised DVD with media to examine further.

Follow-up with representative who’ve attended but have not yet joined Continuous meetings with company representatives, industry experts, and PR

consultants to identify issues and design industry-specific contingency plans to prevent issues from becoming crises. Draft industry-specific voluntarily adopted customer charters for participating alliance firms that describes how customers will be compensated in case a crisis does arise. These charters should be unconditionally constructive and broadly address and seek to correct consumers grievances gathered through initial issues monitoring even if it may come at a cost for the company. Firms must adopt these charters to be part of the alliance.

Role of PR Produce content for website and direct mail that establishes welcoming, positive,

hopeful, and professional tone to increase participation. Identify organisational decision-makers and a set of those from market leading

companies, which may be invited earlier to ensure confidentiality as a Eurostar initiative.

Track user logins to evaluate response levels. Monitor and maintain bookings. Create suitable messages for personalised content.

Ensure values and customer-centric focus are being maintained at every level of planning.

Identify and schedule one-to-one interviews with reporters of business and trade press.

Organise SGM: time, venue, catering, prepare presentations, speakers, information packs, set agenda. Monitor responses of those who’ve attended.

Ensure constant contact with company representative. Organise regular think tank meetings and ensure that planning moves on schedule.

Aim of evaluation Proposed tools for measurementFormative

Interest Track number of unique logins used, dwell times, and number of pages viewed. Monitor number of firms requesting meetings.

Are pull strategy media tactics effective? Track changes in numbers of unique logins and requested meetings before and during media activity

SummativeHas joining the alliance benefited its members?

Use financial reports to identify any improvements in Q4 balance sheets. Interview with senior management to gain feedback. Customer confidence should also be considered.

Media - Eurostar seeking to make your travel experiences betterObjective

Publicise and create buzz of new ventureSpecific Media and ActivitiesAfter consumer website re-launch and in addition to media activities mentioned above:

Press releases to general press and broadcast explaining Eurostar’s initiative and its implication for consumers.

Articles in trade press and business papers Continuous updates in general consumer media on companies subscribing to the

initiative. Press conference to introduce the final design and implementation with full list of

participating companies. Supply media kits. Offer interviews with participating organisation directors.

Role of PR Ensure confidentiality in dealing with media in pre launch phases. Identify key contacts in consumer and trade press; build relationships. Constant contact with media to ensure story remains in news cycles; maintain

awareness. Ensure messages are disseminated properly. Monitor consumer awareness. Organise press conference, send invitations to media, and organise media kits. Managing risk: the unveiling of the programme as a Eurostar initiative should utilise a

short but memorable burst strategy as to not slight other companies that have joined. A drip strategy should be used as more companies subscribe to the initiative.

Aim of evaluation Proposed tools for measurementFormative

Quantity and quality of coverage Media monitoring and distribution statisticsAre messages being disseminated in a manner that meets objectives?

Media content analysis

Advocacy/Pressure Groups, MPs - Your concerns are our concerns. Will you support us?Objective

Persuade influential stakeholders to back the initiativeSpecific Media and Activities

Provide a detailed brief of the aims of the alliance and explain how theses coincide with the organisation’s/person’s personal initiative(s), beliefs, or field of expertise. Follow with an invitation to a catered boardroom meeting to further discuss the alliance’s ideologies and provide a rough overview of how it will (or should) operate for the betterment of consumers.

Maintain constant contact with supporters to update them on progress with an open invitation to contribute.

Role of PR Identify potential candidates with beliefs that match those of the alliance. Organise logistics of special event: venue, time, etc. with key corporate figures. Note special dietary requirements for catering. Prepare presentations, set meeting agenda Make arrangements for those unable to attend Ensure confidentiality of Eurostar identity

Aim of evaluation Proposed tools for measurementInterest Monitor number of responses against number

of invitations sent and number of supporters.

Gantt Chart

References

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