Chapter 6

Transport Marketing
Roadways - BEST Railways Airlines

Overview
Introduction to each Industry Marketing Mix (8 P s) of each mode
1. 2. 3. 4. 5. Product (Product levels & Service Flower) Price Place (Channels of Distribution) Promotion People (Employees & Customers i.e. market segmentation) 6. Physical Evidence 7. Process (Service Blueprint) 8. Productivity & Quality (Service Quality Dimensions / RATER Analysis)

Overview
For every Mode of Transport:
SWOT Analysis PEST Analysis Recent Developments

University Questions

Introduction to Transport
Importance of (Road) Transport [Univ Q May
05 & Nov 07 (5 marks)] Employment generation Growth of industries Aids production Boosts consumption Helps in distribution Regional specialization Promotes agriculture Utilization of land

THE ROADWAYS

Introduction to Roadways
India has more than 3 million km of road network, making it one of the largest in the world. However, the quality of the roads is inadequate and cannot meet the needs of efficient and fast moving transportation. National Highways which are the prime arterial routes span about 58,112 km throughout the country and cater to about 45 per cent of the total road transport demand. Mumbai BEST Service is the oldest bus transportation corporation in India. Established in 1873, the enterprise is a public undertaking operating under Brihan Mumbai Municipal Corporation.

Marketing Mix of Roadways

Product

Product Mix

1. Compressed Natural Gas Bus 2. Single Deck Bus (Vestibule Bus): introduced for economical bus operation and to carry more passengers particularly in peak hours. 3. A/C Luxury Bus
4. Low Floor Buses: for the welfare of physically handicapped 5. Automatic Transmission Buses: introduced to reduce the driver s fatigue.

Product

Product Levels
Levels
Basic Expected Augmented Potential

Examples
Transportation of people Timeliness, Cleanliness, Safety, structure of bus Air-conditioned Buses, Day Pass and Smart cards, Cellphone bill deposit boxes CCTV s, Implementation of GPS, 24 hour service

Product
Service

Flower
Payment

SafeKeeping Consultancy

CORE: Transport Information

Hospitality

Safety Elements Infrastructure Elements Human Elements

SUPPLEMENTARY SERVICES

Price
BEST follows the cost based pricing model Direct Costs + Indirect Charges + Profit = Price Concessions to:
Freedom Fighters Military Men Students Handicapped Blind Travellers

Price List

Price
FARE STRUCTURE W.E.FROM : 25/01/2005 ORDINARY LIMITED AIR CONDITIONED

THE BRIHANMUMBAI ELECTRIC SUPPLY AND TRANSPORT UNDERTAKING

KMS

ADULT FARE CONCESSIONA ADULT FARE CONCESSIONAL ADULT FARE (RS) 3 5 7 10 15 20 25 30 35 4 4.5 5 7 9 11 13 14 15 L FARE (RS) 1 2 3 3 4 5 6 7 7 (Maximum) (RS) 4.5 5 6 8 10 12 15 16 18 Rs.2 for every addl. 5 Kms or FARE (RS) 1 3 3 4 5 6 7 8 9 (Maximum) (RS) 13 17 19 25 29 33 37 41 45 Rs.5 for every addl. 5 Kms or

Above 35 Rs.2 for every Kms addl. 5 Kms or

Place - Channels of distribution

BEST Bus Bus Depots Ticket issuing offices Bus Stops all over the city (every 500 900 m)

Promotion
No Structured Marketing Campaign Includes the following:

Smart card Vodafone drop boxes Vodafone PCOs LCD screens Advertising on Handles Advertising on BEST buses Bus Stops, Shelter, Poles Service Promotion through www.bestundertaking.com

People
People

External

Internal

Travelers i.e. Customers

Employees

Bus Driver

Bus Conductor

Back - end employees etc

People
BEST bus comprises of a conductor, Driver and inspector.

Bus conductor
A bus conductor works in the passenger section of a bus or tram - single or double-decker - collecting fares, issuing tickets and answering queries about routes, fares and timetables. Helps passengers on and off buses and ensures that everyone remains seated safely Checks season tickets and concessionary passes, ensuring they are valid On request, warns passengers when their stop comes up Answers queries about routes, timetables and fares

Bus ticket checker

A bus ticket checker is usually a promoted post within the company, adjusting timetables, dealing with complaints and perhaps checking tickets. Plans and adjusts routes and timetables

Market Segmentation (External Customers)

Feeder Routes These routes which feed the railway stations either from the residential complexes or Business Districts. East-West Connectors These routes which feed the railway stations either from the residential complexes or Business Districts. Trunk Routes Ladies Special & Ladies First Services

Run SouthNorth through the city and are almost parallel to the railways.

Physical Evidence
The Bus Stop Bus Depot Bus Stop Uniforms of conductors, drivers and TTE

Process (Service Blueprint)

Arrive at Bus Stop Get into the Bus Have a Seat Pay for the Tickets
Receive

Get Down at
Destination

Tickets

Line of interaction
Receive the Payment Remove Tickets Punch the Tickets Give the Tickets

Line of visibility
Record it in a Record Sheet

Line of internal interaction

Collect the Tickets from the Depot Report it at the Depot

Productivity & Quality

(Service Quality Dimensions/RATER Analysis)
RELIABILITY

Customer satisfaction, time & safety

ASSURANCE

TANGIBILITY

Timely services & security

Seats, windows, lights etc .

EMPATHY

RESPONSIVENESS

Rail & bus spacing, conductors etc

Providing help during calamities or breakdown

THE INDIAN RAILWAYS

Introduction to the Indian Railways

The largest railway in Asia The fourth most heavily used system in the world Carries 14 million passengers a day Track route length more than 65,000 kilometers 2,07,719 units of freight cars 45,350 passenger cars 6909 stations 14,06,400 staff.

It operates 8984 passenger trains everyday

Marketing Mix of Railways

Product

Product Mix
Passenger Traffic:

 Coaches
 (Seating, berths, leg room, elbow room, double decks)

       

Reservation Lighting Catering Water Sanitation Bed rolls Medical aid Services at the railway stations

Product

Product Mix Freight Traffic: (agricultural and industrial activities) Types of wagons- BOX, BOY, BCA, TANK, BCX Domestic Container Service Freight Forwarder scheme Quick Transit Scheme Speed Link Express Trains
Mail Traffic (Railway Mail Services)

On time services, quicker delivery, professionalism in management, wider coverage in remote areas

Price
Concessions
Orthopedically Handicapped War Widows. - Travelling for any purpose Students Senior citizens

However in case of special and luxury trains, the charges are very high.

Product

Product Levels
LEVELS RAILWAYS - EXAMPLES
Transportation of people and equipment Timeliness, Cleanliness, Safety, Proper ticket dispensation Pay Phone, Trolleys, ATM Machine, Seating Area Coaches with New Layouts, Call centre facilities, SMS alerts, tickets at petrol pumps

Basic Expected Augmented Potential

Product
Service

Flower
Cafeteria Coupon Booklets CORE: Waiting area

Metal Detectors

TRANSPORTATION

Online Booking

Teleservices Vendor Machines CCTV S

SUPPLEMENTARY SERVICES

Price
5 principles of pricing
Cost of service principle: charges based on the actual costs incurred on the services Value of service principle: fixation of rates on the value of service Principle of differential charging: Allow different charges on different commodities for same distance Equal mileage rate principle: flat rate principle in which the rate per km. Decreases as kilometre increases Zonal charging: Division of area into several zones and discourages short hauls and encourages longer ones

The suitability of a particular principle depends upon the prevailing conditions vis--vis emerging trends.

Place - Channels of distribution

Distribution of services to many remote areas Online Facilities:

Passenger s Current Status Enquiry Fare Enquiry Reservations Train Between Important Stations Upgraded Passenger Scheme/Chart Weekly Availability at Stations

Tatkal Scheme

Place - Channels of distribution

62,000 kilometres of track length 6896 Passenger Stations Freight Terminals Corporate/Regional/Divisional Headquarters Centralized Railway Reservations Offices Travel Agents Freight Forwarders Offices And Terminals

Promotion
Does Not Undertake Aggressive Promotion Promotion Of Its Luxury Trains Advertising New Services Through Internet, their Website www.indianrailways.gov.in Advertising Holiday Special Trains Promotion Strategies
Proliferation Of Ticketing Facility Up gradation Scheme Scheme of frequent travellers (SOFT) Tourists Tickets

People

External

Internal i.e. Employees

Customers

Driver, motorman, guard, ticket checker, employee at reservation counter, employee at station, catering people, RAILWAY engineer, station manager

People
Driver, motorman, guard, RAILWAY engineer, stationmaster, RAILWAY police should be efficient and accurate as safety of passenger depend upon them. Employee at reservation counter, employee at station, and ticket checker should talk politely and with empathy Catering people should also prepare healthy and tasty food.

Market Segmentation (External Customers)

Basis of Segmentation
Class Wise / Income wise

Segments
1st class ac sleeper class, Ac 2 tier class car, Ac 3 tier sleeper class, Ac chair car, First class ordinary, Sleeper class ordinary, Ladies Special Trains Mail, Express, Ordinary fast, Super fast, Luxury, Special. Long distance. Medium distance. Short distance.

Sex Wise Speed Wise

Distance Wise

Physical Evidence
Railway stations

Trains and tracks

Reservation centres

Tickets, passes, others

Process (Service Blueprint)

Suburban Railways Buy ticket/pass

Travel

Long Distance Travelling

Fill The Reservation Form Get The Reserved Ticket