1. PREMIER TRAVEL INN · BREWERS FAYRE · BEEFEATER · T.G.I. FRIDAY'S · COSTA · PIZZA HUT · DAVID LLOYD LEISURE
The 8th Group
Names:
2. 8th group
Contents
I.
• Introduction
• Brands
II.
• Internal Analysis
• 1. Main Strategy
• 2. Strategy in action
• 3. Core Competence I
• 4. Leadership
III.
• Marketing
segmentation
• 1. Premier Inn
• 2. Costa Coffee
3. 8th group
IV.
• Industry Market
• Porter’s Five
Forces
V.
• Macro
Environment
• PESTEL
VI.
• Finance
VII.
• Stakeholders
• Stakeholder
Map
VIII.
• Scenario
IX.
• Conclusion
Contents
4. 8th group
Core Businesses
• Budget Hotel Industry : Premier Inn : 606
hotels with 44,295 rooms
• Coffee Shop Chain : Costa Coffee :1200 uk
and 650 abroad, in 25 countries
• Restaurants : Beefeater, Brewers Fayre,
Table Table, Taybarns : 379 restaurants in
uk
6. 8th group
Strategy in action
• Expanding premier inn in UK
• Expanding Costa coffee world wide
• Expanding restaurants in UK
• Engage with stakeholder
7. 8th group
Core Competence I
• Assessing through history:
“The ability to absorb knowledge form business alliances, and
use it to develop own business.”
8. 8th group
Leadership
• Chairman:
• Anthony Habgood
Cambridge University
MS in Carnegie Mellon University
Director Boston Consulting Group (1977).
Executive Committee of BCG Inc (1981).
Chief Executive Tootal Group plc (1991).
Chief Executive of Bunzl plc (1991).
Chairman of Bunzl plc (1996)
Non-executive Chairman of Whitbread plc (2005)
Reed Elsevier plc and Reed Elsevier NV (2009).
Chairman of Whitbread plc (2010)
9. 8th group
Leadership
CEO
Andy Harrison
• Managing Director of Courtaulds Textiles Ltd
• Chief Executive of RAC PLC (previously Lex
Services PLC)
• Chief Executive Officer of EasyJet plc
(2005-2010)
• Chief Executive Officer of Whitbread (2010)
10. 8th group
Finance
Turnover of Whitbread PLC
ThousandsGBP
'- 0
400,000
800,000
1,200,000
1,600,000
Years
2007 2008 2009 2010
Costa Coffee Limited
Premier Inn Limited
Whitbread Restaurants Limit
Others
11. 8th group
Finance Cont’d
Turnover of Whitbread PLC
0.0%
25.0%
50.0%
75.0%
100.0%
Years
2007 2008 2009 2010
26.0%
19.2%18.0%
56.8%
20.4%
24.5%25.5%
10.5% 30.0%33.8%37.7%
15.0%
23.6%22.5%
18.8%17.8%
Costa Coffee Limited
Premier Inn Limited
Whitbread Restaurants Limit
Others
12. 8th group
Finance Cont’d
Gross Profit Margin of Witbread PLC
0.0%
22.5%
45.0%
67.5%
90.0%
Years
2007 2008 2009 2010
68.2%70.6%70.7%
73.7%
17.0%14.5%14.9%
11.1%
Profit Margin
Expenses to Sales Ratios
13. 8th groupTurnover and Profit Margin comparison of
Premier Inn and Travelodge
Turnover Profit Margin
ThousandsGBP
'- 0
150,000
300,000
450,000
600,000
Years
2007 2008 2009 2010
0.0%
10.0%
20.0%
30.0%
40.0%
Years
2007 2008 2009 2010
Premier Inn Lim
Travelodge Hot
14. 8th group Turnover and Profit Margin Comparison of
Costa Coffee and Starbucks
Profit Margin
-14.0%
-10.5%
-7.0%
-3.5%
0.0%
3.5%
7.0%
10.5%
14.0%
Years
2007 2008 2009 2010
Costa Coffee Li
Starbucks Coffe
Turnover
ThousandsGBP
'- 0
100,000
200,000
300,000
400,000
Years
2007 2008 2009 2010
15. 8th group
Finance Cont’d
Whitbread PLC
Number of Employees
Employees
25,000
25,750
26,500
27,250
28,000
Years
2007 2008 2009 2010
Turnover per Employee
ratio
of Whitbread PLC
GBP
'- 0
15,000
30,000
45,000
60,000
2007 2008 2009 2010
16. 8th group
Finance Cont’d
Gearing Ratio of
Whitbread PLC
0.0%
15.0%
30.0%
45.0%
60.0%
2007 2008 2009 2010
Based on long-term borrowings
Based on total borrowings
Interest Cover Ratio
of Whitbread PLC
Times
'-
2.25
4.50
6.75
9.00
2007 2008 2009 2010
20. 8th group
Market Segmentation
• Premier Inn
Position : “Premier” Budget
Hotel
Market Segmentation : Budget Traveler &
Business
traveler
Competitor : Travelodge
22. 8th group
Industry Market
Five forces premier inn
• Threats of new entrants medium
• Threats of substitute high
• Bargaining power of supplier medium
• Bargaining Power of costumer medium
• Competitive Rivalry of the Industry medium
23. 8th group
Market Segmentation
• Costa Coffee:
Position : Premium Coffee
Brand
Market Segmentation : wide ages group,
recharge, and relax
visitor
Competitor : Starbucks Coffee
• Costa Coffee:
Position : Premium Coffee
Brand
Market Segmentation : wide ages group,
recharge, and relax
visitor
Competitor : Starbucks Coffee
24. 8th group
Industry Market Cont’d
Five forces analysis of Costa Coffee
• Threats of new entrants medium
• Threats of substitute medium
• Bargaining Power of supplier medium
• Bargaining Power of costumer medium
• Competitive Rivalry of the Industry high
25. 8th group
Market Segmentation
• Restaurant Group:
Position : casual dining
Market Segmentation : family dining,
people who stays at
premier inn
Competitor : Pub Restaurants
26. 8th group
Industry Market Cont’d
Five forces of restaurant’s brands
• Threats of new entrants medium
• Threats of substitute high
• Bargaining Power of supplier low
• Bargaining Power of costumer medium
• Competitive Rivalry of the Industry high
36. 8th group
Customer Focus
Everything's Premier but the price
Why we're Premier
A warm welcome, comfortable beds, great food and surprisingly low
prices.
"customers being particularly price-sensitive“
-- chief executive Andy Harrison(BBC, 2011)
Whitbread appoints EHS 4D for CRM activity
(campaignlive.co.uk, 2011)
37. 8th group
Scenario
Focus on
emerging
markets
and
opportuni
ty of
acquisitio
n
Quick
expansion
and hold
market
place
Pull back
from the
new
investmen
t and (or)
sell less
profit
brands
Remain a
good
image
brand and
make the
best of
market
place
Politics
Economic
SevereSupportive
Recession Thrive
Scenario
38. 8th group
Conclusion
“the advantage of downturn of the property
market” -- Whitbread's chief executive
Alan Parker(2010)
Price/Earnings Ratio
0
8
16
24
32
Whitbread InterContinental Hotels
Price/Earnings Ratio
41. 8th group
Conclusion
•Despite the economic crisis, Whitbread did quite well during the
last 2 years.
•The organisation has been changing quickly enough to deal with
the rapid shift of the macro environment in this contemporary
world. It seems like Whitbread knows what is it’s the most
efficient way to do to make the best profit for the stakeholders,
and now it focus more on the long term expansion and loyalty of
customers.
•But as we mentioned before, Whitbread’s growing is slower than
before. It considers the environment of budget hotel market is
“challenging”(BBC, 2011) , in other words, quite unpredictable.
Same as Costa Coffee, with the power rival, Starbucks.
•All in all, Whitbread will still get gross profit from its long term
expansion. We suggest it is a good company worth investing in
short-term view. However, from a long term’s approach, it is still
remains in myth.
