Question

CASE STUDY P&O Ferries Cross-Channel ferries provide sea passage across the 20 mile (32km) stretch of water between Dover in England and Calais in France. This journey is the shortest route between Britain and continental Europe. One company, P&O Ferries, runs cross-Channel ferries with facilities for foot passengers, cars, coaches and freight business. The company works with a wide range of partners, including tourist boards and travel trade operators. P&O is the largest ferry operator in the market, with significant provision in all major sea routes. It is the largest operator in the Channel. There are many challenges facing P&O, especially from competition. It has had to become increasingly price sensitive to compete against the other ferry companies

offering channel travel. However, its aim is to combine value for money with a quality customer experience. Its main competitors are Norfolk Lines and LD Lines, which offer services on the same route. Another key competitor was Seafrance, which has recently gone into liquidation. Concerns regarding turbulent economic conditions, coupled with uncertainty over the euro, create an uncertain future for all travel operations. In addition, evolving regulations, increasing uncertainty over costs, particularly in the area of fuel, and congested waters in the Channel are factors that affect P&O's operations. Consumers are not always price sensitive and regularly put comfort ahead of cost and speed as factors influencing their choice of mode of transport when travelling
around Europe. As well as being competitively priced, P&O's demand-led online pricing structure is relatively simple and flexible. The P&O ferries also offer
customers the benefits of comfort and space - an important travel factor - and on-board entertainment. Other benefits to customers include the freedom to carry baggage and sporting equipment, the ease of taking pets on holiday and, for people who own second homes abroad (such as the many British people with second homes in France), the opportunity to transport items and furniture. The ferry sector has other advantages. Ferries offer efficient security procedures, environmentally friendly travel and lower taxes than air travel. However, low-cost airlines are continuing to expand,and remain a popular choice of travel. Another competitor is the Channel Tunnel (an undersea rail link between the UK and France), that offers a quicker and more convenient service than a ferry crossing. The Tunnel does not suffer from adverse weather conditions and people going between London and Paris do not need to change trains or even get out of their seats. High speed rail allows passengers from the UK to access cities in France, Belgium, Germany and beyond in shorter times than ever. On the other hand, the Tunnel is a lot less interesting and is uncompetitive on price. P&O is seeing an increased frequency of short-break holidays and a growth in popularity of the family long-stay market, particularly with visitors who own second properties abroad. The company is also popular with those customers who do not like flying. Like many other similar companies, it uses loyalty schemes to retain customers for repeat purchases. The above data has been based on a real-life situation, but details have been changed for assessment purposes and may not be an accurate reflection of reported news.
Discuss the customer’s needs. Is the company fulfilling these needs?

Answer 1

P&O Ferries meets customer needs through a flexible online pricing structure, comfort and space offerings, and its ability to cater to specific customer preferences such as transporting bulky items and providing a leisurely travel experience. The company uses loyalty schemes to retain customers and provides advantageous features not shared by competitors like the Channel Tunnel or low-cost airlines.

Step-by-step explanation:

Customer Needs and Company Fulfillment in P&O Ferries Case Study Within the case study of P&O Ferries, customer needs are multifaceted and range from price sensitivity, to the need for comfort, space, and on-board entertainment. The company appears to meet these needs with a demand-led online pricing structure that simplifies and adapts according to needs, offering customers value for money alongside a quality experience. P&O Ferries capitalizes on its competitive advantages by providing features that its competitors, such as low-cost airlines and the Channel Tunnel, do not offer as effectively like the ease of transporting pets and larger items. These offerings align with the preferences of specific customer segments, such as those who are averse to flying, own second homes abroad, or require more baggage accompaniment.

The implementation of loyalty schemes by P&O also demonstrates an understanding of customer needs regarding value recognition and retention strategies, indicating that P&O is attentive to long-term customer relationships. While they face challenges such as economic turbulence, fuel costs, and competition from both ferries and alternative modes of transport, P&O's tailored approach to customer needs is evident. This includes leveraging the benefits of ferries being an environmentally friendly travel option with efficient security procedures.

Moreover, P&O's focus on providing a more leisurely and enjoyable experience could cater to those who prefer travel as part of their holiday experience, rather than simply a means to an end. While the Channel Tunnel provides a quicker service, it does not cater to the leisurely traveler or those needing to transport bulky items, allowing P&O to continue appealing to its niche market segments.