Situation: Paramus, N.J.-based Coach USA, a subsidiary of UK-based Stagecoach Group, turned to Hanser & Associates in 2005 to launch Chicago-based megabus.com, the first company in North America to offer intercity express bus service with fares as low as $1 via the Internet. Megabus.com launched service in March 2006 from its Chicago hub its Chicago hub and seven other Midwest cities. Early business success drove megabus.com to begin expanding in 2007. Today, they serve more than 40 cities in the Midwest and Northeast United States and Canada.

PR Action: We formulated brand and marketing PR strategy and positioned the new service as a “first in North America” for a news media campaign, including print and broadcast media materials. The firm conducted news conferences in multiple megabus.com’s cities including hub launch events — Times Square in New York, at The Navy Pier in Chicago, Union Station in Los Angeles, and 30th Street Station in Philadelphia — on the first day passengers were able to book tickets for travel; the firm also held media events in the other megabus.com cities. We pitched the story to media and arranged for TV, radio, print and online media across the country to interview company executives and passengers. The firm placed another round of news coverage when service began in each city; subsequent news announcements described customers’ acceptance of megabus.com, benefits to travelers and introduction of the first double-decker intercity busses in the United States. Hanser & Associates also implemented direct-to-consumer programs and events to drive word of mouth, and social media strategies including Facebook, MySpace, Twitter and YouTube to build megabus.com’s Online community.

Results: New media coverage included TV, radio, newspaper and Online media in all markets, including The New York Times, Chicago Tribune, Los Angeles Times’ and Philadelphia Inquirer business sections. National media coverage included Associated Press, CNBC, CNN, NBC Nightly News, NPR, The Wall Street Journal, Time Magazine, UPI and USA Today, and consumer travel media, including AARP The Magazine (world’s largest circulation magazine), National Geographic Traveler, Reader’s Digest , Everyday with Rachel Ray and TravelSmart. During the first four years megabus.com was the subject of nearly 6,000 news placements, with a media value (cost if purchased as advertising) in excess of $60 million. News coverage, blog conversations and Online social media visibility drove an average of nearly 400,000 visitors per month to the Web site (including 12,234 during the first week in 2006 alone and 23,000 additional visitors on the day the Northeast expansion was announced in New York). Company executives report “explosive” sales in markets following local news stories. Business results included serving more than 6 million passengers during the first four years, North America revenues and profitability ahead of goals, and ticket sales increasing more than 100 percent in 2010, compared to 2009. Additionally, the Motorcoach Council in late 2008 began using the term “MegaBus movement” to describe the rapid growth of intercity express bus service.

Posted: November 30, 2009 at 12:00 pm by sarag