6[1].transport marketing


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6[1].transport marketing

  1. 1. Transport Marketing <ul><li>Introduction </li></ul><ul><li>Marketing Mix for Rail, Road and Air transport </li></ul><ul><li>Transport Marketing in Indian perspective – </li></ul><ul><ul><li>Problems faced by bus and trucking industry </li></ul></ul><ul><ul><li>Rail – Road coordination </li></ul></ul><ul><ul><li>National and State highways </li></ul></ul><ul><ul><li>Importance of road transportation in the Indian economy </li></ul></ul>Service Sector Management
  2. 2. <ul><li>Indian Railways </li></ul><ul><li>The largest railway in Asia </li></ul><ul><li>The fourth most heavily used system in the world </li></ul><ul><li>Carries 14 million passengers a day </li></ul><ul><li>Track route length more than 65,000 kilometers </li></ul><ul><li>2,07,719 units of freight cars, 45,350 passenger cars, 6909 stations and 14,06,400 staff. It operates 8984 passenger trains everyday </li></ul><ul><li>Indian Roads </li></ul><ul><li>Length of 2 million kilometers </li></ul><ul><li>More than 20,000 kilometers of highways </li></ul><ul><li>Carry almost 60 percent of the country’s passenger traffic and 40 percent of freight </li></ul>Service Sector Management
  3. 3. <ul><li>Maritime Transport in India </li></ul><ul><li>India has 12 major and 185 minor ports </li></ul><ul><li>More than 16,000 kilometers of inland waterways </li></ul><ul><li>Airports </li></ul><ul><li>India has 60 airports, including 11 international airports </li></ul><ul><li>Two airlines (Air India and Indian Airlines) and one helicopter service (Pawan Hans) owned by government </li></ul>Service Sector Management
  4. 4. Marketing Mix for Rail Transport <ul><li>Product </li></ul><ul><li>Passenger Traffic– </li></ul><ul><li>Coaches (Seating, berths, leg room, elbow room, double decks) </li></ul><ul><li>Reservation </li></ul><ul><li>Lighting </li></ul><ul><li>Catering </li></ul><ul><li>Water </li></ul><ul><li>Sanitation </li></ul><ul><li>Bed rolls </li></ul><ul><li>Medical aid </li></ul><ul><li>Services at the railway stations </li></ul>Service Sector Management
  5. 5. <ul><li>Freight Traffic- (agricultural and industrial activities) </li></ul><ul><li>Types of wagons- BOX, BOY, BCA, TANK, BCX </li></ul><ul><li>Services- Domestic Container Service </li></ul><ul><li>Freight Forwarder scheme </li></ul><ul><li>Quick Transit Scheme </li></ul><ul><li>Speed Link Express Trains </li></ul><ul><li>Street Collection etc </li></ul><ul><li>Mail Traffic (Railway Mail Services) </li></ul><ul><li>On time services, quicker delivery, professionalism in management, wider coverage in remote areas </li></ul>Service Sector Management
  6. 6. <ul><li>Pricing (Deciding the fare and freight rate) </li></ul><ul><li>Principles of pricing: </li></ul><ul><li>Cost and Value of service </li></ul><ul><li>What the traffic will bear </li></ul><ul><li>Equal Mileage Rate Principle (fixed rate/km) </li></ul><ul><li>Differential charging </li></ul><ul><li>Zonal charging </li></ul><ul><li>Suggestions to improve pricing for Indian Railways to make it more profitable… </li></ul>Service Sector Management
  7. 7. <ul><li>Place </li></ul><ul><li>Distribution of services to many remote areas </li></ul><ul><li>Online Facilities: </li></ul><ul><li>Passenger’s Current Status Enquiry </li></ul><ul><li>Fare Enquiry </li></ul><ul><li>Reservations </li></ul><ul><li>Train Between Important Stations </li></ul><ul><li>Upgraded Passenger Scheme/Chart </li></ul><ul><li>Weekly Availability at Stations </li></ul><ul><li>Tatkal Scheme </li></ul>Service Sector Management
  8. 8. <ul><li>People </li></ul><ul><li>Training for employees: More than 2,00,000 staff is imparted training every year, enabling its officers and staffs in acquiring knowledge and new set of technical and managerial skills </li></ul><ul><li>Target customers: A wide coverage, all age groups, all incomes levels, occupations – office going, businessmen, short haul as well as long haul journey passengers </li></ul>Service Sector Management
  9. 9. Role Of Information Technology in Railways <ul><li>Mobile Ticketing </li></ul><ul><li>Web Ticketing </li></ul><ul><li>Kiosk- basd Ticketing </li></ul><ul><li>Time Table and Scheduling System available on demand </li></ul><ul><li>Passenger Information Display System </li></ul><ul><li>Passenger Reservation System Solution </li></ul><ul><li>Unreserved Ticketing System for railways </li></ul>Service Sector Management
  10. 10. Marketing Mix for Road transport <ul><li>Product </li></ul><ul><li>Road Transport Corporations, Inter State Road Transport Organisations or travel agencies/individuals engaged in road transport business to carry passengers or goods from one place to another </li></ul><ul><li>Roads as well as vehicles plying on these roads need up gradation and regular maintenance </li></ul><ul><li>Maintenance of roads includes drainage, provision of road side amenities, landscaping/horticulture etc need special attention </li></ul>Service Sector Management
  11. 11. <ul><li>Price </li></ul><ul><li>For state road transport corporations, pricing structure cannot be changed with a change/hike in the prices of the input </li></ul><ul><li>This affects their financial health and it reflects on the qualify of services offered </li></ul><ul><li>Profit making private organizations can change prices according to cost incurred, seasonal demand, emerging trends etc </li></ul><ul><li>Place </li></ul><ul><li>Better distribution/network of services than rail, in terms of reach </li></ul>Service Sector Management
  12. 12. <ul><li>Problems faced by Bus and Trucking industry </li></ul><ul><li>The Public Road Transport Organizations </li></ul><ul><li>A financial crunch </li></ul><ul><li>The quality of people are not literate and are poor </li></ul><ul><li>Inefficient management </li></ul><ul><li>Old generation buses </li></ul><ul><li>Poor Quality Seating </li></ul><ul><li>Inefficient and Unfair employees </li></ul><ul><li>No support from State Government regarding their revival, a rigid attitude of the Indian industry. </li></ul><ul><li>A strong competition from the private companies </li></ul><ul><li>Non rational fare & freight structures. </li></ul><ul><li>Technology has not reached to the core of this sector. </li></ul><ul><li>It is not possible to keep a surveillance on the bus & truck drivers regarding their routes, fuel details etc. making it difficult for the transporters to modernise. </li></ul>Service Sector Management
  13. 13. <ul><li>Service Triangle </li></ul>Service Sector Management The company- Transport Ind. Providers- BEST Customers
  14. 14. <ul><li>Rail – Road Co-ordination </li></ul>Service Sector Management Roadways Railways 1.
  15. 15. <ul><li>Road Transportation – Indian Economy </li></ul><ul><li>Roads – a great importance to Indian Economy </li></ul><ul><li>Better product mix is needed to divert all long distance traffic to road traffic. </li></ul><ul><li>Government could invite the private sector for construction of roads- Toll taxes being their income. </li></ul><ul><li>India is portrayed as a Tourist country, so to ease travel, roads provide for maximum social advantage. </li></ul><ul><li>Road transportation – a critical element in the transportation infrastructure </li></ul><ul><li>Road construction & maintenance generate employment opportunities. </li></ul><ul><li>Old buses or trucks should be replaced with new modern buses to attract passenger traffic & also check on their safety. </li></ul><ul><li>Road transportation- needed for development of trade & commerce. </li></ul>Service Sector Management
  16. 16. Marketing Mix for Air transport <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>People </li></ul><ul><li>Place </li></ul>Service Sector Management
  17. 17. Product <ul><li>On ground Services </li></ul><ul><li>- Duty free Shopping </li></ul><ul><li>- Reservation Counters </li></ul><ul><li>- Flight Information Display </li></ul><ul><li>- Baggage Screening </li></ul><ul><li>- Check In </li></ul><ul><li>In Flight Services </li></ul><ul><li>- Free Water </li></ul><ul><li>- Food </li></ul><ul><li>- Comfortable Seating Arrangement </li></ul>Service Sector Management
  18. 18. Price Low Fare Pricing Value for Money Pricing Premium Pricing <ul><li>Promotion </li></ul><ul><li>Frequent Flier Points </li></ul><ul><li>Inflight – On demand Movies </li></ul><ul><li>Travel Reward Programmes </li></ul>Service Sector Management
  19. 19. <ul><li>Place </li></ul><ul><li>Booking offices of Airways </li></ul><ul><li>Travel Agents Office </li></ul><ul><li>People </li></ul><ul><li>Air-hostess </li></ul><ul><li>On-Ground Staff </li></ul><ul><li>Pilots </li></ul><ul><li>Tour Operating Agents </li></ul><ul><li>Process </li></ul><ul><li>Computerized reservation system </li></ul><ul><li>Baggage Handling </li></ul>Service Sector Management
  20. 20. <ul><li>Process – (Service Map) </li></ul><ul><li>Ticket booking </li></ul><ul><li>Ticket Processing </li></ul><ul><li>Ticket Delivery </li></ul><ul><li>Customer reaching the airport </li></ul><ul><li>Boarding Pass </li></ul><ul><li>Security Check </li></ul><ul><li>Inside the aircraft, refreshments is served before he reaches his final destination. </li></ul><ul><li>A pre-paid cab is also arranged for the customer’s add-on journey from the airport. </li></ul>Service Sector Management
  21. 21. Transport Marketing in Indian perspective <ul><li>In India transport business is found profitable- large population </li></ul><ul><li>Managerial proficiency is needed to transform potential transport uses to actual users. </li></ul><ul><li>Marketing Mix should be reviewed keeping in mind the socio-economic requirements. </li></ul><ul><li>A suitable product mix helps in satisfying the users, strengthens the capacity of the organization to face competition & generate profits. </li></ul><ul><li>Technology needs to be brought into every sector of the transport industry. </li></ul><ul><li>Innovative marketing practices should be implemented. </li></ul><ul><li>Indian railways: suggestion </li></ul><ul><li>Indian Roadways : suggestion </li></ul><ul><li>Waterways : needs to be highlighted since India is mostly surrounded by water. No. of lakes & rivers in our country. </li></ul>Service Sector Management