Background
Co ntent Negotiating Point
Agreement
1. Lifeme Holidays
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2. DirectSun
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=> Joint venture
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33
1. Lifeme Holidays
Negotiating Point Position
Length of contract 3 years
Destinations Focus on Mediterranean holidays
Customers Aim at the 30-50 age group
Car hire and insurance Do not offer these services
Advertising budget £100,000. Share costs on a 50/50
basis
Media:Mail shots and press
advertising
Investment and profits 60% Lifetime Holiday
40% DirectSun
Project management Manage the project
2. DirectSun
Negotiating Point Position
Length of contract 5 years
Destination Offer all the holidays in both
companies’ catalogues
Customers Aim at all age group
Car hire and insurance Provide these services
Advertising budget £300,000.
70% Lifetime Holiday
30% DirectSun
Media:Include radio advertising
Investment and profits 50% Lifetime Holiday
50% DirectSun
Project management Manage the project
Negotiating Point Result
Length of contract 4 years
Destination Offer all the holidays in both
companies’ catalogues to attract
more customers
Customers Aim at the 20 – 50 age group
Car hire and insurance Provide these services
Advertising budget £200,000.
60% Lifetime Holiday
40% DirectSun
Investment and profits 70% Lifetime Holiday
30% DirectSun
Project management Manage the project: Lifetime
Holiday
III. Agreement
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