Indian Railways segments its passenger market according to geography, demographics, and special quotas. Geographically, it divides India into 17 zones based on climate and region. Demographically, it segments by age, gender, income, and occupation. It offers special quotas for government employees, disabled passengers, and frequent travelers. Indian Railways also segments its freight market according to geography and demographics. Geographically, it uses the same 17 zones as for passengers. Demographically, it distinguishes between public and private freight, and segments by distance, weight, and chemical properties of goods.

1. Market Segmentation Of Indian
Railways
PRESENTED BY- SUMIT PUNIA

2. Market Segmentation
 Market Segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The rationale for market segmentation is that in order
to achieve competitive advantage and superior performance, firms should:
1. Identify segments of industry demand
2. Target specific segments of demand
3. Develop specific marketing mixes for each targeted market segment.

3. Company Profile
 Indian Railways (IR) is India’s national railway system operated by the Ministry of Railways. It
manages the fourth-largest railway network in the world by size, with 121,407 km of total track
over a 67,368 km route.
 Indian railway carried 8,425 million passengers annually or more than 23 million passengers daily.
 In the fiscal year 2017-18 , IR is projected to have earnings of ₹1.874 trillion, consisting of
₹1.175 trillion in freight revenue and ₹501.25 billion in passenger revenue.

4. Services Delivered By IR
 Passenger Railways
 Freight Services
 Parcel Carrier
 Catering and Tourism Services
 Parking lot Operations

5. Indian Railways Market Segmentation
Indian Railway
Passenger
Market Segment
Freight Market
Segment

6. Passenger Market
Segment
AgeClimatic
Zonal
Segmentation
Demographic
Segmentation
Geographic
Segmentation
Gender Occupation
Special
Quotas
Income

7. Geographic Segmentation
 Indian railways have segmented their market geographically on the basis of zones and climate. On the
basis of zones the Indian railways have been divided into 17 zones like northern railways, southern
railways , central railways etc. All these 17 divisions come under the head office located in New Delhi.
 On the basis of climate IR have segmented their market like in the heavy cold areas of India they
provide air conditioned coaches not cool but hot. As we use room heaters in our home in the same way
those coaches provide comfort to passengers by giving warmth.

8. S.No. Railway Zone Code Zone Headquarters
1. Northern Railway NR Delhi
2. North Eastern Railway NER Gorakhpur
3. Northeast Frontier Railway NFR Guwahati
4. Eastern Railway ER Sealdah
5. South Eastern Railway SER Howrah
6. South Central Railway SCR Secanderabad
7. Southern Railway SR Chennai
8. Central Railway CR Mumbai
9. Western Railway WR Mumbai
10. South Western Railway SWR Hubballi
11. North Western Railway NWR Jaipur
12. West Central Railway WCR Jabalpur
13. North Central Railway NCR Allahabad
14. South East Central Railway SECR Bilaspur
15. East Coast Railway ECoR Bhubaneswar
16. East Central Railway ECR Hajipur

10. Demographic Segmentation
Indian Railways demographic market segment is based on various factors like:
 Age : IR has divided people into 4 age groups under 2 years with no fare, 2-5 years with 50% fare, 5-60
years with full fare and finally above sixty i.e. senior citizens with 75% of fare.
 Gender : IR has divided public on the basis of gender as male and female though there is no concession
regarding the ticket fare but they can reserve their seats for future journey with the 33% reservation provided
by Govt.
 Income : IR has divided the people into 3 income groups high, medium and low. These segments are
provided with different classes of travel like HAC, 2AC, 3AC, Sleeper and general coaches for travel.
 Occupation : people have been divided into employees of railways ,employees of railway subsidiaries,
employees of railway schools and hospitals etc.
 Special Quotas : IR also provides some special quotas to different categories of people like Govt. Servants ,
People’s representatives, physically disabled persons, group concessions in pro-booking , monthly passes for
travellers who travel to same destination frequently etc.

11. Freight Market Segment
Geographic Demographic

12. Geographic Segmentation
The Geographic segmentation is of same as passenger market segmentation with 17 zones.
Demographic Segmentation :
 Public & Private: some of the companies have their own wagons and tracks into the manufacturing units
and are connected to main track for transport these are called private and all other freight services comes
under public.
 Distance: long ,short and medium
 Weight : very heavy, heavy, medium and low
 Chemical state of product : solid, liquid , gas , flammable ,not flammable , perishable etc.

18. References
 https://www.thehindubusinessline.com/news/south-central-railway-inks-pact-with-orient-
cements/article9878153.ece
 https://www.financialexpress.com/economy/big-boost-for-railways-cement-makers-signing-long-term-
freight-contracts-in-droves/811585/
 https://economictimes.indiatimes.com/industry/transportation/railways/railways-to-allow-private-
companies-to-run-own-freight-trains/articleshow/58117954.cms
 https://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1
 https://www.indianrailways.gov.in
 https://www.managementstudyguide.com/market-segmentation.htm
 http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,304,366,533,1007,10
12
 https://www.mapsofindia.com/maps/india/railway-zonal-map.html

19. THANK YOU