6[1].transport marketing

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

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, BCXServices- Domestic Container ServiceFreight Forwarder schemeQuick Transit SchemeSpeed Link Express TrainsStreet 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- basd 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 Organisations 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

Rail – Road Co-ordination

Service Sector Management

Railways

1.

Roadways

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

• PlaceService 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 AirwaysTravel Agents Office

PeopleAir-hostessOn-Ground StaffPilotsTour Operating Agents

ProcessComputerized reservation systemBaggage Handling

Service Sector Management

Process – (Service Map)1. Ticket booking2. Ticket Processing3. Ticket Delivery4. Customer reaching the airport5. Boarding Pass6. Security Check7. 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