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Chapter 6

Chapter 6. Transport Marketing. Roadways - BEST Railways Airlines. Overview. Introduction to each Industry Marketing Mix (8 P’s) of each mode Product (Product levels & Service Flower) Price Place (Channels of Distribution) Promotion

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Chapter 6

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  1. Chapter 6 Transport Marketing • Roadways - BEST • Railways • Airlines

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

  3. Overview • For every Mode of Transport: • SWOT Analysis • PEST Analysis • Recent Developments • University Questions

  4. 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

  5. THE ROADWAYS

  6. 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 inadequateand cannot meet the needs of efficient and fastmoving transportation. • National Highways whichare the prime arterial routes span about 58,112km throughout the country and cater to about45 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.

  7. Marketing Mix of Roadways

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

  9. Product Levels Product

  10. Service Flower Safe- Keeping Consultancy Product Payment CORE: Transport Hospitality Information Safety Elements Infrastructure Elements Human Elements SUPPLEMENTARY SERVICES

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

  12. Price • Price List

  13. Place - Channels of distribution • BEST Bus • Bus Depots • Ticket issuing offices • Bus Stops all over the city (every 500 –900 m)

  14. 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

  15. People

  16. 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

  17. Market Segmentation(External Customers)

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

  19. Arrive at Bus Stop Get into the Bus Have a Seat Pay for the Tickets Receive Tickets Get Down atDestination 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 Process (Service Blueprint)

  20. Productivity & Quality(Service Quality Dimensions/RATER Analysis) Customer satisfaction, time & safety Timely services & security Seats, windows, lights etc…. Providing help during calamities or breakdown Rail & bus spacing, conductors etc…

  21. THE INDIAN RAILWAYS

  22. 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

  23. Marketing Mix of Railways

  24. 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

  25. 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

  26. 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.

  27. Product Levels Product

  28. Service Flower Cafeteria Waiting area Coupon Booklets Product Online Booking CORE: TRANSPORTATION Metal Detectors Teleservices Vendor Machines CCTV’S SUPPLEMENTARY SERVICES

  29. 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.

  30. 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

  31. 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

  32. 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

  33. People

  34. 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.

  35. Market Segmentation(External Customers)

  36. Physical Evidence

  37. Process (Service Blueprint) • Suburban Railways • Long Distance Travelling

  38. Productivity & Quality(Service Quality Dimensions/RATER Analysis) Customer satisfaction, time & safety Timely services & security Seats, windows, lights etc…. Providing help during calamities or breakdown Rail & bus spacing, conductors etc…

  39. THE AIRLINES INDUSTRY

  40. 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

  41. Marketing Mix of AirlinesIndustry

  42. Passenger service- National International Goods service National international Air Service Mix Product Mix Mail service National International Social service National International Air Services Mix

  43. Product PRODUCT MIX On Ground Services In-Flight services Special Services • Class of Service • Convenience & Safety • Magazines • Check-in Options • Baggage Information • Coach Services • Infant and Child Care • Wheel Chair Assistance • Expectant Mothers

  44. Product • Product Levels

  45. Service Flower Game Palour Multi – cuisine Product Gifts CORE: TRANSPORT In-flight Shopping In-flight Entertainment Medical Infant & Childcare Lounge SUPPLEMENTARY SERVICES

  46. 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

  47. 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

  48. Place - Channels of distribution

  49. Promotion • Advertising • Publicity • Sales promotion • Brand Mascot • Eg. Air India

  50. People

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