The seven principles of persuasion by Dr. Robert Cialdini
Amtrak Marketing Presentation
1. Agenda
1. Introductions
2. Addressing the Challenge
3. SWOT
4. Industry Forecast
5. Market Research
6. Amtrak’s Travelers
7. Financial Analysis
8. Solution
9. Time for Questions
Team10
Brent Aguilar, Jessica Bishop, Cynthia MacInnis, Ian Tresselt, Joel Zolnier
2. Addressing the Challenge
Improve User Experience in the Northeast Corridor
3 challenges
- Inconsistent links to other transportation
- Aging infrastructure
- Lack of funding
Although the Northeast Corridor (NEC) is
the only profitable region for Amtrak, there
is room for improvement
Source: Master Plan Working Group
3. Strengths
- Scenery
- Easy boarding
- Rewards program
- Rail industry monopoly
- Conducive to impulse travel
- Prominent in metropolitan areas
- Wi-fi available for duration of trip
- Expansive rail coverage of Northeastern corridor
- “Acela Express”: Efficient service between major Northeast cities
Weaknesses
- High overhead cost
- Inconsistent customer service
- Costs more than bus and automobile travel
- Crumbling infrastructure– rail, bridges, tunnels
- Derailments can cause large-scale injury and death
- Secondary transportation needed after station arrival
- Lacks strong branding, aesthetics and communication
Opportunities
- Upgrade amenities
- Vertical integration
- Improve leisure routes
- Clarify various policies
- 1:1 interaction with brand
- Customer service improvement
- Improve on-board entertainment
- Opportunities for unused seats/assets
- Social media usage for communication
- Form partnerships with related organizations
Threats
- Rail accidents
- Union shutdowns
- Threat of terrorism
- Government shutdowns
- Government funding loss
- Other rail systems- MAGLEV
- Alternate travel methods– air, bus, auto
8. Financial Analysis
Program Costs
Element Start Up Maintenance
Adventurer Program App Dev & Maintenance* $270,000 $96,000/yr.
Media Development for Special Interest Groups** $10,000 $12,000/yr.
Advertising Promotion*** ------- -------
Total Cost, Year 5 $0.820 M
Estimated 5-Year Operating Income $590.3 M
Estimated 5-Year Income Increase $589.4 M
* (Mobile forms, online)
** (hoop.la, online)
*** Redirect current annual marketing budget of $42.2M (Amtrak FY2014 Budget Request, online)
References: See Team 10 Amtrak Marketing Plan
9. Amtrak Adventurer
“Let’s Take An Adventure Together!”
Re-branding of the Amtrak Rewards
Program that Features
- Easier Communication
- Location Technology
- Add-On Perks
- Seat Reservations
- Pre-order Food
- Perks
This application will remind us that rail travel is historically
significant and filled with passionate stories of past adventurers!