Greyhound Pioneer

An Example of a Strong Brand Ultimately Defeated by Poor Managerial Accounting Systems

  • Enright Hendy & Partners identified the substantial and ongoing decline in point-to-point travel. This required a restructuring of the business to embrace the growth opportunities offered by the backpacker, tours and holiday traveller wanting a touring holiday experience as opposed to the recently decreased-cost airline journey to the destination holiday (usually visiting friends and relatives).
  • The brand required a persona reflecting the shift in emphasis from fast road travel (greyhound) to reflect the uniquely Australian experiences being sought by the target markets. The backpacker and holiday tours (incorporating optional low cost accommodation) were designed/marketed via the wholesale and direct distribution channels, and costed to meet the researched behaviours of the current significant market. The product offers then were required to be communicated to the travel agent (3,500 strong network) and consumer markets, domestically and overseas. Concurrently, a low cost means of retaining the still significant domestic point-to-point (VFR) business was also required. Air/coach return travel packages were created, as well as non-stop express coach services between major travel points.
  • An expansive incentive/database-driven trade and consumer communications strategy using PR, trade flyers/faxes travel press, POS posters and brochures was produced. Trade PR and training functions employing low cost audio-visuals introduced the strategy and incentives to all travel agent personnel. (Refer material) This was accompanied by limited retail advertising to support the current point-to-point market, purchased via OMD, Australia's second largest media buying agency. Enright Hendy & Partners created and managed databases of all travel agents and potential co-op marketing partners in Australia (accommodation, attraction and feeder regional coach operators).

Outcome:

  • Greyhound reasserted confidence in its business in the hearts and minds of both trade and consumer markets, as well as its bankers.
  • The strategy supported the business with minimal capital injection for several years. However the absence of a reliable cost accounting system to provide reliable product costing for the profitable integration of point-to-point travellers and tour travellers, denied a consistently profitable outcome.
  • Enright Hendy & Partners resigned the business in 1997.