Chapter 6
Transport Marketing
–Roadways - BEST–Railways–Airlines
Overview• Introduction to each Industry• Marketing Mix (8 P’s) of each mode
1. Product (Product levels & Service Flower)2. Price3. Place (Channels of Distribution)4. Promotion5. People (Employees & Customers i.e. market
segmentation)6. Physical Evidence7. 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
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 Mix
Product• Product Levels
Levels Examples
Basic Transportation of people
Expected Timeliness, Cleanliness, Safety, structure of bus
Augmented Air-conditioned Buses, Day Pass and Smart cards, Cellphone bill deposit boxes
Potential CCTV’s, Implementation of GPS, 24 hour service
SUPPLEMENTARY SERVICES
Product• Service Flower
CORE: Transport
Consultancy
Hospitality
Safety Elements
Human Elements
Information
Payment
Safe- Keeping
Infrastructure Elements
Price• BEST follows the cost based pricing model Direct Costs + Indirect Charges + Profit = Price
• Concessions to:– Freedom Fighters– Military Men– Students– Handicapped– Blind Travellers
PriceTHE BRIHANMUMBAI ELECTRIC SUPPLY AND TRANSPORT UNDERTAKING
FARE STRUCTURE W.E.FROM : 25/01/2005
KMS ORDINARY LIMITED AIR
CONDITIONED
ADULT FARE CONCESSIONA
L FARE (RS)
ADULT FARE CONCESSIONAL
FARE (RS)
ADULT FARE
(RS) (RS) (RS)
3 4 1 4.5 1 13
5 4.5 2 5 3 17
7 5 3 6 3 19
10 7 3 8 4 25
15 9 4 10 5 29
20 11 5 12 6 33
25 13 6 15 7 37
30 14 7 16 8 41
35 15 7 18 9 45
Above 35
Kms
Rs.2 for every
addl. 5 Kms or
part thereof
(Maximum) Rs.2 for every
addl. 5 Kms or
part thereof
(Maximum) Rs.5 for every
addl. 5 Kms or
part thereof
• Price List
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
• 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
People
Market Segmentation(External Customers)
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
Remove Tickets
Punch the Tickets
Receive Tickets
Record it in a Record Sheet
Give the Tickets
Collect the Tickets from the Depot
Receive the Payment
Get Down at Destination
Report it at the Depot
Line of interaction
Line of visibility
Line of internal interaction
RELIABILITY
EMPATHY RESPONSIVENESS
TANGIBILITYASSURANCE
Customer satisfaction, time & safety
Timely services & security
Seats, windows, lights etc….
Rail & bus spacing, conductors etc…
Providing help during calamities or breakdown
Productivity & Quality(Service Quality Dimensions/RATER Analysis)
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
– 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 Mix
Product
– 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
• Product Mix
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 - EXAMPLESBasic Transportation of people and equipment
Expected Timeliness, Cleanliness, Safety, Proper ticket dispensation
Augmented Pay Phone, Trolleys, ATM Machine, Seating Area
Potential Coaches with New Layouts, Call centre facilities, SMS alerts, tickets at petrol pumps
Product• Service Flower
CORE: TRANSPORTATION
Waiting area
Online Booking
Teleservices
CCTV’SVendor Machines
Metal Detectors
Coupon Booklets
Cafeteria
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-à-vis emerging trends.
• 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
Place - Channels of distribution
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
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 SegmentsClass Wise / Income wise 1st class ac sleeper class,
Ac 2 tier class car,Ac 3 tier sleeper class,Ac chair car,First class ordinary,Sleeper class ordinary,
Sex Wise Ladies Special Trains
Speed Wise Mail, Express, Ordinary fast, Super fast, Luxury, Special.
Distance Wise Long distance.Medium distance.Short distance.
Physical Evidence
Process (Service Blueprint)• Suburban Railways
• Long Distance Travelling
RELIABILITY
EMPATHY RESPONSIVENESS
TANGIBILITYASSURANCE
Customer satisfaction, time & safety
Timely services & security
Seats, windows, lights etc….
Rail & bus spacing, conductors etc…
Providing help during calamities or breakdown
Productivity & Quality(Service Quality Dimensions/RATER Analysis)
THE AIRLINES INDUSTRY
Introduction to the Airline Industry• Indian Aviation Industry - is one of the fastest growing aviation
industries in the world.
• With the liberalization of the Indian aviation sector, this industry has undergone a rapid transformation.
• From being primarily a government-owned industry, today it is dominated by privately owned full service airlines and low cost carriers.
• Some of the Major players are:– Indian Airlines & Air India– Jet Airways & JetLite– Kingfisher & Air Deccan– IndiGo– SpiceJet
Marketing Mix of AirlinesIndustry
Air Services MixPassenger
service-National
International
Passenger service-
National International
Goods serviceNational
international
Goods serviceNational
international
Mail serviceNational
International
Mail serviceNational
International
Social serviceNational
International
Social serviceNational
International
Air Service Mix
Product Mix
Product
PRODUCT MIX
Special ServicesSpecial ServicesIn-Flight servicesIn-Flight servicesOn Ground ServicesOn Ground Services
• Class of Service• Convenience &
Safety• Magazines
• Check-in Options• Baggage
Information• Coach Services
• Infant and Child Care • Wheel Chair
Assistance• Expectant Mothers
Product
Core Transport
ExpectedSafety, Lounge, hygiene food, Emergency Exit.
AugmentedSahara airlines offer its passengers six different types of cuisine like vegetarian, fat free, diabetic etc.
PotentialAir Emirates provide cab services where they have customized pick and drop service.
• Product Levels
Product• Service Flower
CORE: TRANSPORT
Multi – cuisine
In-flight Shopping
Medical
LoungeInfant & Childcare
In-flight Entertainment
Gifts
Game Palour
SUPPLEMENTARY SERVICES
Price• Depends on the positioning of the airline i.e. a premiere
airways like Jet Airways or a low cost airways like SpiceJet
• Tariffs are decided on the type of the sector i.e. geographic location of destinations
• Even flight departure timings affect the pricing.– Flights at convenient timings are charged higher
• Lower prices for Apex i.e. advance bookings
• Average tickets range Rs 7000 for economy class and Rs 15000 for business class
Price• Pricing Strategies
– Premium Pricing: set prices above the market price either to reflect the image of quality or the unique status of the product.
– Value for Money Pricing: charge the average price for the product and emphasize that it represents excellent value for money at this price.
– Cheap Value Pricing: The objective here is to undercut the competition and price is used to trigger the purchase immediately.
– Differential pricing: The First Class, The Executive or Business Class and The Economy Class.• Fares & facilities differ with each class
– Seasonal fares are also fixed, fares rise during the peak holiday times.
– Low-cost Pricing: very low prices for the flight tickets
Place - Channels of distribution
Promotion
• Advertising
• Publicity
• Sales promotion
• Brand Mascot – Eg. Air India
People
• Airhostess in airline come in contact with the customers in the process of providing the service
• Cock-pit crew come in indirect contact with the customers
• Front-line personnel usually solves customer problems
People[Nov 07 (10 marks)]
Type of contact Person
High contact Airhostess
Medium contact Cock pit crew
Low contact Travel agent
Market Segmentation(External Customers)
Physical Evidence• Booking offices, ticket counters, etc.
• Tickets and stationery used
• Aircraft seating
• In-flight food
• Domestic lounges with good interiors and basic amenities
• Website & Logo
Process (Service Blueprint)
• Front Stage Process
Productivity & Quality(Service Quality Dimensions/RATER Analysis)
RELIABILITY
Airlines ensure that the service is delivered as promised and this is often totally with in the control of the front-line staff.
ASSURANCETheir flight will be on time and their journey will be safe
TANGIBLESSurrounding area, car parking, baggage counter, reservation counter
EMPATHYAirhostesses are trained to provide polite, warm and courteous service
RESPONSIVENESSHelping customers to know details about flights timings
SWOT AnalysisStrengths:
SWOT Analysis
• Weaknesses
SWOT Analysis
• Opportunities:
SWOT Analysis
• Threats:
PEST Analysis
• Political
PEST Analysis
• Economic
PEST Analysis
• Social
PEST Analysis
• Technological
Recent Developments
Rail – Road Co-ordination[Univ Q – Nov 01, 05 (5 marks); May 04 (10 marks)]
• Transport co-ordination: relationship between different modes of transport having unified to give better facilities to public– At the same time allowing each mode to work where it is best suited
• Road & Rail – offer stiff competition between them• However, are complimentary & mutually beneficial• Motor Vehicle Act, 1939 – regulates road transport through
compulsory licensing• Railways offer confessional season tickets• Railways governed by Central govt & Roadways by State• Roadways cater to short – medium distance & for perishable
commodities• Railways for heavy & long distance• Both are needed for a consumer & thus co-ordination is
essential
University Questions
• National & State Highways [Nov 04 (5 marks)]• Problems faced by the bus & trucking industry
[May 06 (10 marks)]• Role of IT in Railways [Nov 07 (2 marks)]• Service is a performance given by one human
being to another. Discuss this in detail with relevance to airlines industry and elaborate the people element in airlines. [Nov 07 (10 marks)]
Top Related