1. Chapter 6
Transport Marketing
Roadways - BEST
Railways
Airlines

2. Overview Introduction to each Industry
Marketing Mix (8 P’s) of each mode
Product (Product levels & Service Flower)
Price
Place (Channels of Distribution)
Promotion
People (Employees & Customers i.e. market segmentation)
Physical Evidence
Process (Service Blueprint)
Productivity & Quality (Service Quality Dimensions / RATER Analysis)

3. Overview For every Mode of Transport: University Questions
SWOT Analysis
PEST Analysis
Recent Developments
University Questions

4. Introduction to Transport
Importance of (Road) Transport [Univ Q – May 05 & Nov 07 (5 marks)]
Employment generation
Growth of industries
Aids production
Boosts consumption
Helps in distribution
Regional specialization
Promotes agriculture
Utilization of land

5. THE ROADWAYS

6. Introduction to Roadways
India has more than 3 million km of road network, making it one of the largest in the world.
However, the quality of the roads is inadequate and cannot meet the needs of efficient and fast moving transportation.
National Highways which are the prime arterial routes span about 58,112 km throughout the country and cater to about 45 per cent of the total road transport demand.
Mumbai BEST Service is the oldest bus transportation corporation in India. Established in 1873, the enterprise is a public undertaking operating under Brihan Mumbai Municipal Corporation.

7. Marketing Mix of Roadways

8. Product Compressed Natural Gas Bus
Product Mix
Compressed Natural Gas Bus
Single Deck Bus (Vestibule Bus): introduced for economical bus operation and to carry more passengers particularly in peak hours.
A/C Luxury Bus 
Low Floor Buses: for the welfare of physically handicapped
Automatic Transmission Buses: introduced to reduce the driver’s fatigue.

9. Product Levels Examples Basic Transportation of people Expected
Timeliness, Cleanliness, Safety, structure of bus
Augmented
Air-conditioned Buses, Day Pass and Smart cards, Cellphone bill deposit boxes
Potential
CCTV’s, Implementation of GPS, 24 hour service

10. Product Safe- Keeping Consultancy Payment CORE: Transport Hospitality
SUPPLEMENTARY SERVICES
Service Flower
Safe- Keeping
Consultancy
Payment
CORE: Transport
Hospitality
Information
Safety Elements
Infrastructure Elements
Human Elements

11. Price BEST follows the cost based pricing model
Direct Costs + Indirect Charges + Profit = Price
Concessions to:
Freedom Fighters
Military Men
Students
Handicapped
Blind Travellers

12. Price
Price List
THE BRIHANMUMBAI ELECTRIC SUPPLY AND TRANSPORT UNDERTAKING
FARE STRUCTURE W.E.FROM : 25/01/2005
KMS
ORDINARY
LIMITED
AIR CONDITIONED
ADULT FARE
CONCESSIONA L FARE (RS)
CONCESSIONAL FARE (RS)
(RS) 3 4 1
4.5 13 5 2 17 7 6 19 10 8 25 15 9 29 20 11 12 33 37 30 14 16 41 35 18 45
Above 35 Kms
Rs.2 for every addl. 5 Kms or part thereof
(Maximum)
Rs.5 for every addl. 5 Kms or part thereof

13. Place - Channels of distribution
BEST Bus
Bus Depots
Ticket issuing offices
Bus Stops all over the city (every 500 –900 m)

14. Promotion No Structured Marketing Campaign Includes the following:
Smart card
Vodafone drop boxes
Vodafone PCOs
LCD screens
Advertising on Handles
Advertising on BEST buses
Bus Stops, Shelter, Poles
Service Promotion through

15. People People External Travelers i.e. Customers Internal Employees
Bus Driver
Bus Conductor
Back - end employees etc

16. People Bus conductor Bus ticket checker
BEST bus comprises of a conductor, Driver and inspector.
Bus conductor
A bus conductor works in the passenger section of a bus or tram - single or double-decker - collecting fares, issuing tickets and answering queries about routes, fares and timetables.
Helps passengers on and off buses and ensures that everyone remains seated safely
Checks season tickets and concessionary passes, ensuring they are valid
On request, warns passengers when their stop comes up
Answers queries about routes, timetables and fares
Bus ticket checker
A bus ticket checker is usually a promoted post within the company, adjusting timetables, dealing with complaints and perhaps checking tickets.
Plans and adjusts routes and timetables

17. Market Segmentation (External Customers)
Feeder Routes
These routes which feed the railway stations either from the residential complexes or Business Districts.
East-West Connectors
Trunk Routes
Run South-North through the city and are almost parallel to the railways.
Ladies Special & Ladies First Services

18. Physical Evidence The Bus Stop Bus Depot Bus Stop
Uniforms of conductors, drivers and TTE

19. Process (Service Blueprint)
Arrive at Bus Stop
Get into the Bus
Have a Seat
Pay for the Tickets
Remove Tickets
Punch the Tickets
Receive Tickets
Record it in a Record Sheet
Give the Tickets
Collect the Tickets from the Depot
Receive the Payment
Get Down at Destination
Report it at the Depot
Line of interaction
Line of visibility
Line of internal interaction

20. Productivity & Quality (Service Quality Dimensions/RATER Analysis)
Customer satisfaction, time & safety
Timely services & security
Seats, windows, lights etc….
Providing help during calamities or breakdown
Rail & bus spacing, conductors etc…

21. THE INDIAN RAILWAYS

22. Introduction to the 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
14,06,400 staff.
It operates 8984 passenger trains everyday

23. Marketing Mix of Railways

24. Product Passenger Traffic: Coaches Reservation Lighting Catering Water
Product Mix
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

25. Product Freight Traffic: (agricultural and industrial activities)
Product Mix
Freight Traffic: (agricultural and industrial activities)
Types of wagons- BOX, BOY, BCA, TANK, BCX
Domestic Container Service
Freight Forwarder scheme
Quick Transit Scheme
Speed Link Express Trains
Mail Traffic (Railway Mail Services)
On time services, quicker delivery, professionalism in management, wider coverage in remote areas

26. Price
Concessions
Orthopedically Handicapped
War Widows. - Travelling for any purpose
Students 
Senior citizens
However in case of special and luxury trains, the charges are very high.

27. Product LEVELS RAILWAYS - EXAMPLES Basic
Transportation of people and equipment
Expected
Timeliness, Cleanliness, Safety, Proper ticket dispensation
Augmented
Pay Phone, Trolleys, ATM Machine, Seating Area
Potential
Coaches with New Layouts, Call centre facilities, SMS alerts, tickets at petrol pumps

28. Product Cafeteria Waiting area Coupon Booklets Online Booking
CORE: TRANSPORTATION
Waiting area
Online Booking
Teleservices
CCTV’S
Vendor Machines
Metal Detectors
Coupon Booklets
Cafeteria
SUPPLEMENTARY SERVICES
Service Flower

29. Price 5 principles of pricing
Cost of service principle: charges based on the actual costs incurred on the services
Value of service principle: fixation of rates on the value of service
Principle of differential charging: Allow different charges on different commodities for same distance
Equal mileage rate principle: flat rate principle in which the rate per km. Decreases as kilometre increases
Zonal charging: Division of area into several zones and discourages short hauls and encourages longer ones
The suitability of a particular principle depends upon the prevailing conditions vis-à-vis emerging trends.

30. Place - Channels of distribution
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

31. Place - Channels of distribution
62,000 kilometres of track length
6896 Passenger Stations
Freight Terminals
Corporate/Regional/Divisional Headquarters
Centralized Railway Reservations Offices
Travel Agents
Freight Forwarders’ Offices And Terminals

32. Promotion Does Not Undertake Aggressive Promotion
Promotion Of Its Luxury Trains
Advertising New Services Through Internet, their Website –
Advertising Holiday Special Trains
Promotion Strategies
Proliferation Of Ticketing Facility
Up gradation Scheme
Scheme of frequent travellers (SOFT)
Tourists Tickets

33. People
External
Customers
Internal i.e. Employees
Driver, motorman, guard, ticket checker, employee at reservation counter, employee at station, catering people, RAILWAY engineer, station manager

34. People
Driver, motorman, guard, RAILWAY engineer, stationmaster, RAILWAY police should be efficient and accurate as safety of passenger depend upon them.
Employee at reservation counter, employee at station, and ticket checker should talk politely and with empathy
Catering people should also prepare healthy and tasty food.

35. Market Segmentation (External Customers)
Basis of Segmentation
Segments
Class Wise / Income wise
1st class ac sleeper class,
Ac 2 tier class car,
Ac 3 tier sleeper class,
Ac chair car,
First class ordinary,
Sleeper class ordinary,
Sex Wise
Ladies Special Trains
Speed Wise
Mail, Express, Ordinary fast, Super fast, Luxury, Special.
Distance Wise
Long distance.
Medium distance.
Short distance.

36. Tickets, passes, others…
Physical Evidence
Railway stations
Trains and tracks
Reservation centres
Tickets, passes, others…

37. Process (Service Blueprint)
Suburban Railways
Buy ticket/pass
Travel
Long Distance Travelling
Fill The Reservation Form
Get The Reserved Ticket
Show The Ticket To The Travelling Ticket Examiner
Travel & Experience the services

38. Productivity & Quality (Service Quality Dimensions/RATER Analysis)
Customer satisfaction, time & safety
Timely services & security
Seats, windows, lights etc….
Providing help during calamities or breakdown
Rail & bus spacing, conductors etc…

39. THE AIRLINES INDUSTRY

40. Introduction to the Airline Industry
Indian Aviation Industry - is one of the fastest growing aviation industries in the world.
With the liberalization of the Indian aviation sector, this industry has undergone a rapid transformation.
From being primarily a government-owned industry, today it is dominated by privately owned full service airlines and low cost carriers.
Some of the Major players are:
Indian Airlines & Air India
Jet Airways & JetLite
Kingfisher & Air Deccan
IndiGo
SpiceJet

41. Marketing Mix of Airlines Industry

42. Air Services Mix Air Service Mix Product Mix Passenger service-
National
International
Goods service
international
Mail service
Social service
Air Service Mix
Product Mix

43. Product PRODUCT MIX On Ground Services In-Flight services
Special Services
Class of Service
Convenience & Safety
Magazines
Check-in Options
Baggage Information
Coach Services
Infant and Child Care
Wheel Chair Assistance
Expectant Mothers

44. Product Core Transport Expected
Product Levels
Core
Transport
Expected
Safety, Lounge, hygiene food, Emergency Exit.
Augmented
Sahara airlines offer its passengers six different types of cuisine like vegetarian, fat free, diabetic etc.
Potential
Air Emirates provide cab services where they have customized pick and drop service.

45. Product Game Palour Multi – cuisine Gifts In-flight Shopping
CORE: TRANSPORT
Multi – cuisine
In-flight Shopping
Medical
Lounge
Infant & Childcare
In-flight Entertainment
Gifts
Game Palour
SUPPLEMENTARY SERVICES
Service Flower

46. Price
Depends on the positioning of the airline i.e. a premiere airways like Jet Airways or a low cost airways like SpiceJet
Tariffs are decided on the type of the sector i.e. geographic location of destinations
Even flight departure timings affect the pricing.
Flights at convenient timings are charged higher
Lower prices for Apex i.e. advance bookings
Average tickets range Rs 7000 for economy class and Rs for business class

47. Price Pricing Strategies
Premium Pricing: set prices above the market price either to reflect the image of quality or the unique status of the product.
Value for Money Pricing: charge the average price for the product and emphasize that it represents excellent value for money at this price.
Cheap Value Pricing: The objective here is to undercut the competition and price is used to trigger the purchase immediately.
Differential pricing: The First Class, The Executive or Business Class and The Economy Class.
Fares & facilities differ with each class
Seasonal fares are also fixed, fares rise during the peak holiday times.
Low-cost Pricing: very low prices for the flight tickets

48. Place - Channels of distribution
Consolidation
The direct sale of tickets from airport to the passenger on the airline desk.
Tour Operator/ Travel Agent
Customers book tickets through travel agents or tour operators
Affiliated with companies
Airlines gets affiliated with companies who carry all its trips with a same airline who in turn gives special discounts or offers in return.
Direct through home leased system
Phone, fax, and also online e-booking.

49. Promotion Advertising Publicity Sales promotion Brand Mascot
Eg. Air India

50. People People External Customers Internal Customers Travel agents
Travelers i.e. Customers
Internal
Employees
Ground Staff i.e. Front end staff
Cabin Crew
Back - end employees etc

51. People
[Nov 07 (10 marks)]
Airhostess in airline come in contact with the customers in the process of providing the service
Cock-pit crew come in indirect contact with the customers
Front-line personnel usually solves customer problems
Type of contact
Person
High contact
Airhostess
Medium contact
Cock pit crew
Low contact
Travel agent

52. Market Segmentation (External Customers)
Business passengers
Customers with less spare time and more cash in their pockets, who agree to pay a premium price
The premium prices they pay provide better services.
Economy Travelers
The most important consideration for most of them is the price.
The lower the airfare, the more people will fly the respective airline.
Other than wealthy travelers, this segment will not pay extra for premium services

53. Physical Evidence Booking offices, ticket counters, etc.
Tickets and stationery used
Aircraft seating
In-flight food
Domestic lounges with good interiors and basic amenities
Website & Logo

54. Process (Service Blueprint)
Front Stage Process
Reservation & Receipt of Tickets
Arrival at Airport
Check – in & Relax in Lounge
Boarding the flight; Interaction with Crew & Experiencing the ambience
Alighting the Aircraft
Baggage Retrieval

55. Productivity & Quality (Service Quality Dimensions/RATER Analysis)
RELIABILITY
Airlines ensure that the service is delivered as promised and this is often totally with in the control of the front-line staff.
ASSURANCE
Their flight will be on time and their journey will be safe
TANGIBLES
Surrounding area, car parking, baggage counter, reservation counter
EMPATHY
Airhostesses are trained to provide polite, warm and courteous service
RESPONSIVENESS
Helping customers to know details about flights timings

56. SWOT Analysis Strengths: Flexibility Door to Door Service
Roadways
Flexibility
Door to Door Service
Quick Transport
Railways
Economic fares suiting needs of all classes
Improved performance of the Indian Railways since the past few years
Additional services provided
Airlines
Passengers will continue to need connecting/network services
Ensures a leisure travel, like airport lounges
Enhanced in-flight service and more comfortable seating
In long-haul markets, where premium service is essential

57. SWOT Analysis Weaknesses second largest consumer of energy
Roadways
Expensive mode of transport for long distances
Not very environmental friendly. Emits considerable amount of pollution
Bad state of Indian Roads
More no. of accidents
Railways
Limited concern for consumer satisfaction
second largest consumer of energy
Airlines
Excess capacity
Complicated flight operations.
Mounting debt – Enormous debt to investment ratio
Cost-to-revenues ratio per seat mile is very high
Weaknesses

58. SWOT Analysis Opportunities:
Roadways
Construction of Highways
Construction of Sea links, Expressways
Introduction of Environmental friendly Vehicles
Railways
Decentralisation
Transport sector in GDP
Road & Rail Development in India
Airlines
Maintain short-haul flights only to extent needed to feed the network
Opportunities:

59. SWOT Analysis Threats:
Roadways
Rising Oil prices globally leads to expensive transport
Competition from Railways in long distance travel
Increasing no. of vehicles leading to decreasing driving & parking space
Railways
Share of public modes is declining
Other modes of transport
Penetration of railways- declining
Airlines
Labour problems as “legacies” try to streamline in order to compete
More competition
Threats:

60. PEST Analysis Political Roadways Depreciation policy
Infrastructure development
All the vehicles have to pay a fixed tax known as ‘toll tax’.
Railways
Railways owned by the Government of India
It is meant to serve the economically and social backward class
Privatization
Airlines
Continued tension with Pakistan
Political event September 11
Trade relation
Corruption levels like in India bribe have to be paid for every permit and licence required

61. PEST Analysis Economic Roadways Revenue Trade cycles Pricing
This has a direct impact on the price mix of transport
Railways
Cannot balance demand & supply
Growing economic burden
Contribution to GNP
Airlines
Global recession

62. PEST Analysis Social Roadways Free travel facility
Reservation of seats
Front door entry
Disaster management
Festival action plans
Curb air pollution
Railways
Serves all sections of the society.
Social revolution
Environment friendly
Social status
Airlines
Food based on client needs e.g. jain food
Different lounges for different customers

63. PEST Analysis Technological Roadways Information technology
(CNG) buses
Online ticket accounting system
Integrated network system
New technologies introduced
Railways
Computerized
Reservation facility
Improved signaling & other systems
Construction of bridges
Modern Technology
Airlines
Auctioning seats online
e-check in
Modernization of airports
Technological

64. Recent Developments

65. Rail – Road Co-ordination [Univ Q – Nov 01, 05 (5 marks); May 04 (10 marks)]
Transport co-ordination: relationship between different modes of transport having unified to give better facilities to public
At the same time allowing each mode to work where it is best suited
Road & Rail – offer stiff competition between them
However, are complimentary & mutually beneficial
Motor Vehicle Act, 1939 – regulates road transport through compulsory licensing
Railways offer confessional season tickets
Railways governed by Central govt & Roadways by State
Roadways cater to short – medium distance & for perishable commodities
Railways for heavy & long distance
Both are needed for a consumer & thus co-ordination is essential

66. University Questions National & State Highways [Nov 04 (5 marks)]
Problems faced by the bus & trucking industry [May 06 (10 marks)]
Role of IT in Railways [Nov 07 (2 marks)]
Service is a performance given by one human being to another. Discuss this in detail with relevance to airlines industry and elaborate the people element in airlines. [Nov 07 (10 marks)]