Amtrak Services Presentation

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A services presentation on Amtrak

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  • Tangible AspectsTracks and trainsInterior, exterior, amenitiesWooden and concrete tiesTrain stationsAvailability of space, cleanliness, comfort and design, layout, signs, temporal attributes (music), amenities offeredPresentation of employeesCrisp uniforms and well kept appearances of conductors, front-line staff, other employeesWebpageTicket
  • Target MarketsServes three specific markets: Business, leisure, and student travelersIssue: Amtrak never attempted or have been able to clearly define their target market(s) and their attributes and needsCertain aspects of their service targeted towards market segmentsAcela Express = business classStudent Advantage Card = college studentsAmtrak’s service can be used by anyoneAllowed ability to market to specific niche go to waste
  • Promotional/Advertising StrategyNo promotional mix because of no target marketPromotions offeredStudent Advantage Discount CardVeterans Advantage Discount CardInternational Student Identity CardAAA Membership CardNational Association of Railroad Passengers discountsDiscounted prices on cruise lines they are partnered withLarge market share from the start, no need for effective advertisingMinimal advertising attempts, “advertise at people not to them”(Direct Magazine)Recently with new image (safer, greener, healthier) creating more effective advertisements to showcase their new positioning strategy
  • Efficiency of Services (short term profitability)TimelinessSharing of tracks with freightsChange laws to be stricter, allow for more dispatch priority for AmtrakInfrastructureWooden vs. concrete tiesHigh speed rail marketNew, upcoming marketCustomer Relationship ManagementClearly define target market, better able to tailor servicesDirect messaging systemUpdated technologies in train stations for retrieval of passenger information
  • Employees/Employee CommunicationLargest expense is employee salaries, wages, benefitsChange manual processes to be electronic, save moneyLong Term ProfitabilityPublic TradingRevenue generated from stock used for funding capital improvementsHold Amtrak accountable to shareholdersHold company to highest standards Keep all internal and external processes consistentAdvertising StrategyNew campaigns highlighting their differential advantages to draw in new customersNew strategy would be expensive, but profitable in long run because it would increase their customer base
  • Amtrak Services Presentation

    1. 1. Service Marketing Project<br />Josh Haber, Michael Piscadlo, Brittany Tomkiewicz<br />
    2. 2. Rail Industry Overview<br />Once the primary form of transportation<br />1950’s-70’s<br />Shift to personal transportation/air travel<br />1970<br />U.S. Government creates Amtrak<br />Present Day<br />No other major rail passenger line competitors<br />Tracks mainly owned/used by freight transporters<br />
    3. 3. Amtrak Overview<br />Also known as the National Railroad Passenger Passenger Corporation<br />Created by Congress in 1970<br />Began Operations in 1971<br />19,000 Employees<br />Own 469 Locomotives/1,519 Passenger Cars<br />Run Over 300 trains a day<br />Over 500 stations<br />21, 000 train route miles in 46 states<br />Owns 80% of the Northeast Corridor (BostonDC)<br />Over 26 Million Passengers a Year<br />Mainly in the Northeast Corridor/West Coast Lines<br />
    4. 4. Services Offered<br />Variety of Routes<br />Long Distance, Commuter Routes, Regional Routes, High Speed Rail.<br />High Speed Rail<br />Acela Express on Northeast Corridor Only<br />Variety of Seating Options<br />First Class, Business Class, Sleeper Service, and Coach<br />Operates 14 long distance routes across the country<br />Service 23 States<br />
    5. 5. Strategic Elements <br />Positioning<br />Reputation Issues<br />Solid market share from the start<br />Able to obtain a consistent ridership<br />Only major provider of passenger rail<br />Never had to put effort into positioning themselves in the consumer mind<br />Changing times, changing economic situation, changing consumer<br />Position themselves as the “safer, greener, healthier” long distance travel option<br />
    6. 6. Strategic Elements<br />Image<br />Series of ups and downs<br />More negative in past several years<br />Slacking timeliness, inflated prices, declining customer service = bad company image<br />New approach<br />Connecting America in a safer, healthier, greener way<br />
    7. 7. Strategic Elements<br />Tangible Aspects<br />Tracks and trains<br />Train stations<br />Presentation of employees<br />Webpage<br />Ticket<br />
    8. 8. Strategic Elements<br />Target Markets<br />Serves three specific markets:<br />Business, leisure, and student travelers<br />Issue:<br />Amtrak never attempted or have been able to clearly define their target market(s) and their attributes and needs<br />Certain aspects of their service targeted towards market segments<br />Acela Express = business class<br />Student Advantage Card = college students<br />Amtrak’s service can be used by anyone<br />Allowed ability to market to specific niche go to waste<br />
    9. 9. Strategic Elements<br />Differential Advantage<br />Compared to Cars<br />No stress, can have a leisurely journey<br />Time, can get from Point A to Point B quicker<br />Risk, car accidents less prevalent than train accidents<br />Compared to Airlines<br />Accessibility, more locations to board an Amtrak train<br />Time, can buy a ticket and board a train within minutes of each other<br />Location, trains bring you closer to your ultimate destination<br />Reliability, can run under more severe weather conditions<br />
    10. 10. Strategic Elements<br />Promotional/Advertising Strategy<br />No promotional mix because of no target market<br />Promotions offered<br />Student Advantage Discount Card<br />Veterans Advantage Discount Card<br />International Student Identity Card<br />AAA Membership Card<br />Large market share from the start, no need for effective advertising<br />Minimal advertising attempts, “advertise at people not to them”(Direct Magazine)<br />Recently with new image (safer, greener, healthier) creating more effective advertisements to showcase their new positioning strategy <br />
    11. 11. Prospects for Profitability<br />Efficiency of Services (short term profitability)<br />Timeliness<br />Sharing of tracks with freights<br />Infrastructure<br />High speed rail market<br />Customer Relationship Management<br />Clearly define target market, better able to tailor services<br />Direct messaging system<br />Updated technologies in train stations for retrieval of passenger information<br />
    12. 12. Prospects for Profitability<br />Employees/Employee Communication<br />Largest expense is employee salaries, wages, benefits<br />Long Term Profitability<br />Public Trading<br />Revenue generated from stock used for funding capital improvements<br />Hold Amtrak accountable to shareholders<br />Advertising Strategy<br />New campaigns highlighting their differential advantages to draw in new customers<br />New strategy would be expensive, but profitable in long run because it would increase their customer base<br />
    13. 13. Competitors<br />Price<br />Speed over <br />distance<br />Convenience<br />Environmentally <br />Sound<br />
    14. 14. Competitors<br />Safe<br />Speed over <br />distance<br />Comfort<br />Price<br />
    15. 15. Pricing Strategy<br />Non Existent<br />Attempts to extract as much from passengers as the city-pairs, time of year, and accommodations selected will allow Variety of Seating Options<br />Tier Pricing<br />Limited Promotions<br />No Direct Rail Competitor=No Price Wars<br />Pressure from non-rail competitors<br />
    16. 16. Customer Blueprint<br />
    17. 17. SWOT<br />Strengths<br />Dominance in the marketplace<br />Unique service offering<br />Convenience in locations, local stops<br />Flexibility in scheduling, numerous trains on the same day<br />Pricing<br />Weaknesses<br />Pricing Strategy<br />Product Offering<br />Financial Limitations<br />Target Market Segmenting<br />Infrastructure<br />Bad Image<br />
    18. 18. SWOT<br />Opportunities<br />USP-Unique Selling Proposition-more destinations, more frequently, more affordable etc.<br />Pricing Strategy-steep discounts targeted at niche markets<br />Ridership increases<br />Federal Funding<br />Privatization<br />Threats<br />Discount Airlines<br />Discount Busses<br />Automobile Travel<br />Private Train Firms<br />Economic Condition<br />Federal Funding Loss<br />
    19. 19. What do they do well?<br />Alternative option instead of flying<br />Eliminate airline taxes, delays, cancellations<br />Low costs traveling across country<br />$200 for one way<br />Improving their services<br />Wi-Fi, Free Drinks <br />Making travel easy for short regional distances<br />Security<br />Photo ID, Low Profile Target<br />
    20. 20. Long Range Outlook<br />Positive<br />Federal Funding<br />Stimulus Package <br />Improving/New Technology<br />New Services<br />Convenience<br />
    21. 21. Wise Investment?<br />Not Publically Traded<br />Only Major Passenger Rail Service<br />Federally Backed<br />New Technologies<br />Possible Going Public Option?<br />Increase in Capital<br />Accountability <br />

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