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

Transport marketing

  • 1.
    Transport Marketing • Introduction •Marketing Mix for Rail, Road and Air transport • Transport Marketing in Indian perspective – • Problems faced by bus and trucking industry • Rail – Road coordination • National and State highways • Importance of road transportation in the Indian economy Service Sector Management
  • 2.
    Users of Transportation Services •Types of transport service according to what or who is transported- Service Sector Management Passenger Transport Goods Transport Mail Transport
  • 3.
    Users of Transportation Services •Types of transport service according to Individual Or organizational transportation- Service Sector Management Individual Organizational
  • 4.
    Users of Transportation Services •Types of transport service on the basis of purpose- Service Sector Management General Purpose Commercial Purpose
  • 5.
    Indian Railways • Thelargest 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 and 14,06,400 staff. It operates 8984 passenger trains everyday Indian Roads • Length of 2 million kilometers • More than 20,000 kilometers of highways • Carry almost 60 percent of the country’s passenger traffic and 40 percent of freight Service Sector Management
  • 6.
    Maritime Transport inIndia • India has 12 major and 185 minor ports • More than 16,000 kilometers of inland waterways Airports • India has 60 airports, including 11 international airports • Two airlines (Air India and Indian Airlines) and one helicopter service (Pawan Hans) owned by government Service Sector Management
  • 7.
    Marketing Mix forRail Transport 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 Service Sector Management
  • 8.
    Freight Traffic- (agriculturaland industrial activities) Types of wagons- BOX, BOY, BCA, TANK, BCX Services- Domestic Container Service Freight Forwarder scheme Quick Transit Scheme Speed Link Express Trains Street Collection etc Mail Traffic (Railway Mail Services) On time services, quicker delivery, professionalism in management, wider coverage in remote areas Service Sector Management
  • 9.
    Pricing (Deciding thefare and freight rate) Principles of pricing: • Cost and Value of service • What the traffic will bear • Equal Mileage Rate Principle (fixed rate/km) • Differential charging • Zonal charging Suggestions to improve pricing for Indian Railways to make it more profitable… Service Sector Management
  • 10.
    Place Distribution of servicesto 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 Service Sector Management
  • 11.
    People 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 Target customers: A wide coverage, all age groups, all incomes levels, occupations – office going, businessmen, short haul as well as long haul journey passengers Service Sector Management
  • 12.
    Role Of Information Technologyin Railways • Mobile Ticketing • Web Ticketing • Kiosk- based Ticketing • Time Table and Scheduling System available on demand • Passenger Information Display System • Passenger Reservation System Solution • Unreserved Ticketing System for railways Service Sector Management
  • 13.
    Marketing Mix for Roadtransport Product Road Transport Corporations, Inter State Road Transport Organizations or travel agencies/individuals engaged in road transport business to carry passengers or goods from one place to another Roads as well as vehicles plying on these roads need up gradation and regular maintenance Maintenance of roads includes drainage, provision of road side amenities, landscaping/horticulture etc. need special attention Service Sector Management
  • 14.
    Price • For stateroad transport corporations, pricing structure cannot be changed with a change/hike in the prices of the input • This affects their financial health and it reflects on the qualify of services offered • Profit making private organizations can change prices according to cost incurred, seasonal demand, emerging trends etc Place • Better distribution/network of services than rail, in terms of reach Service Sector Management
  • 15.
    Problems faced byBus and Trucking industry The Public Road Transport Organizations • A financial crunch • The quality of people are not literate and are poor • Inefficient management • Old generation buses • Poor Quality Seating • Inefficient and Unfair employees • No support from State Government regarding their revival, a rigid attitude of the Indian industry. • A strong competition from the private companies • Non rational fare & freight structures. • Technology has not reached to the core of this sector. • 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. Service Sector Management
  • 16.
    Service Triangle Service SectorManagement The company- Transport Ind. Providers- BEST Customers
  • 17.
    Road Transportation –Indian Economy • Roads – a great importance to Indian Economy • Better product mix is needed to divert all long distance traffic to road traffic. • Government could invite the private sector for construction of roads- Toll taxes being their income. • India is portrayed as a Tourist country, so to ease travel, roads provide for maximum social advantage. • Road transportation – a critical element in the transportation infrastructure • Road construction & maintenance generate employment opportunities. • Old buses or trucks should be replaced with new modern buses to attract passenger traffic & also check on their safety. • Road transportation- needed for development of trade & commerce. Service Sector Management
  • 18.
    Marketing Mix forAir transport • Product • Price • Promotion • People • Place Service Sector Management
  • 19.
    Product  On groundServices - Duty free Shopping - Reservation Counters - Flight Information Display - Baggage Screening - Check In  In Flight Services - Free Water - Food - Comfortable Seating Arrangement Service Sector Management
  • 20.
    Price Low Fare Pricing Valuefor Money Pricing Premium Pricing Promotion  Frequent Flier Points  Inflight – On demand Movies  Travel Reward Programmes Service Sector Management
  • 21.
    Place Booking offices ofAirways Travel Agents Office People Air-hostess On-Ground Staff Pilots Tour Operating Agents Process Computerized reservation system Baggage Handling Service Sector Management
  • 22.
    Process – (ServiceMap) 1. Ticket booking 2. Ticket Processing 3. Ticket Delivery 4. Customer reaching the airport 5. Boarding Pass 6. Security Check 7. Inside the aircraft, refreshments is served before he reaches his final destination. 8. A pre-paid cab is also arranged for the customer’s add-on journey from the airport. Service Sector Management
  • 23.
    Transport Marketing inIndian perspective • In India transport business is found profitable- large population • Managerial proficiency is needed to transform potential transport uses to actual users. • Marketing Mix should be reviewed keeping in mind the socio- economic requirements. • A suitable product mix helps in satisfying the users, strengthens the capacity of the organization to face competition & generate profits. • Technology needs to be brought into every sector of the transport industry. • Innovative marketing practices should be implemented. • Indian railways: suggestion • Indian Roadways : suggestion • Waterways : needs to be highlighted since India is mostly surrounded by water. No. of lakes & rivers in our country.Service Sector Management