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Introduction
The 4th largest railway network in the world. Carries over 30 million passengers and 2.8 million tons of freight daily. The 2nd largest commercial or utility employer in the world with more than 1.36 million employees. Owns 240000 (freight)wagons,60000 coaches and 9000 locomotives.
Products offered
Passenger services: - Generates 30% of the revenue. - Sikkim and Meghalaya are the only 2 states that are not connected by rail. - Consists of various classes of travel with different prices according to various amenities. Freight services: - Backbone of railway revenues (contributes 70% of the revenue). - Average annual growth of 8.1% in freight loading corresponds to average annual growth of 8-9% of growth in GDP.
Change in Scenario
Then Now
IR was the only mode of cheap transport Functioning was according to the Supply concept
Availability of cheap, alternate sources. Increase in the purchasing power Reduced time of travel guaranteed by air travel
Marketing Strategies
Focus on the consumer segment that spends 12-18 hours in travel. Price points should be lesser than the low cost airlines. Recover market share through a combination of tariff rebalancing and quality enhancement measures.
The Lower Income group (LIG) (< Rs. 3 lakh p.a) - Based on Income The Middle Income Group (MIG) (Rs. 3-10 lakh p.a) The High Income Group (HIG) (> 10 lakh p.a)
HIG No Yes
Marketing Strategies
Lower Income Group
Increase in the no. of unreserved compartments in newer trains Increase in the no. of existing trains Replacing the wooden seats with cushioned ones. Garib Raths
71%
Year Railways
2001-02 5093
2002-03 4971
2003-04 5112
2004-05 5475
Airways
1281
1332
1454
1817
Competition Analysis
Aviation
Roadways
Carry 90% of the countrys passenger traffic and 65% freight. Road network of over 4.42 mn kms. Quality and maintenance of the roads are subjected to locations.
Ports
12 major and 187 minor and intermediate ports along 7500 km coastline . Largely Underdeveloped.
THE 4Ps
Product
Train Duronto Express Rajdhani Express Shatabdi Express and Jan Shatabdi Express Garib Rath Description Non-stop point to point trains connecting metros and major state capitals. Air-conditioned trains linking major cities to New Delhi. There are only a few stops on a Rajdhani route. These are air-conditioned and non-airconditioned respectively intercity trains for day travel. They have only seats and not berths.
These trains contain AC three-tier and AC chair car coaches with fares less than the fares for the
same classes in other trains.
Superfast Express
Average speed greater than 55 km (34 mi) per hour. The tickets for these trains have an additional superfast surcharge.
Most common kind of trains in India. Stops at relatively important intermediate stations.
Slow trains that stop at most stations along the route. The trains generally have unreserved seating accommodation but some night trains have sleeper and 3A coaches. These trains operate in urban and suburban areas, usually stop at all stations and have unreserved
Suburban trains
seating accommodation. Monthly and quarterly tickets for suburban trains are subsidized.
Price
Consumer groups
First class, second class, sleeper, AC Tatkal Reservation
Place
SR. No 1 Name Central Route KMs 3905 Divisions Mumbai, Bhusawal, Pune, Solapur, Nagpur
2
3 4 5 6 7 8 9 10
East Central
East Coast Eastern North Central North Eastern North Western Northeast Frontier Northern South Central
3628
2572 2414 3151 3667 5459 3907 6968 5803
Nanded, Vijayawada
11 12 13 14 15 16 South East Central South Eastern South Western Southern West Central Western 2447 2631 3177 5098 2965 6182 Bilaspur, Raipur, Nagpur Adra, Chakradharpur, Kharagpur, Ranchi Hubli, Bangalore, Mysore Chennai, Tiruchirappalli, Madurai, Palakkad, Salem, Trivandrum(Thiruvananthapuram) Jabalpur, Bhopal, Kota Mumbai Central, Ratlam, Ahmedabad, Rajkot, Bhavna gar, Vadodara
Promotion
Monopoly No aggressive promotions. Promotion through different medium.
www.indianrail.gov.in Banners and Hoardings e Ticketing websites IRCTC branding on all allied services Promoting the Luxury class Palace on Wheels, Deccan Odyssey
RELIABILITY
Railways are accurate in Record Keeping. Railways are accurate in timing of Trains. Railways performs Service Correctly. When you have problems Railways shows sincere interest in solving it. Railways adheres to punctuality of Trains.
ASSURANCE
Indian Railways is trustworthy. You feel safe in your travel. Railway employees are courteous with customers. Railway employees have knowledge to answer customer questions.
EMPATHY
Railways give individual attention. Railway operations are convenient to passengers. Railway employees give personnel attention. It is easy to plan a railway journey.
Tangibles
2.92
5.68
-2.76
2.8
6.05
-3.25
2.9
5.45
-2.55
Assurance
3.61
5.87
-2.26
Empathy
2.96
5.5
-2.54
For increasing infrastructure as well as maintaining the existing infrastructure, labor is a must require input. Labor supply is not same every time and is dependent on the business cycle.
Demand for facilities may increase due to delay in arriving time of trains at station, weather conditions, frequent travelling etc. Variables like weather conditions cannot be controlled, so we see a random demand fluctuation in use of facilities
Demand patterns Charting demand patterns Predictable cycles Random demand fluctuation
To manage Capacity:
Nature of Constraints
Time
Labor
Facilities
Availability of monthly passes and quarterly passes, Concession for students Cleanliness
Service Triangle
INDIAN RAILWAY
Training Inst & PREM Promotion: Palace on wheels
Employee Website
Welfare Plans & Perf Rewards
Internal Marketing
Service Triangle
External Marketing
EMPLOYEE
Customer Care training Inst
Interactive Marketing
Promotion
http://www.youtube.com/watch?v=rSiTde5U MVI
Conclusion
SERVQUAL scale was developed to maesure the service quality in railway passenger service. The results showed that the railways have to improve their service quality in all the areas to meet the customers expectation. They also need to work a lot to manage their demand and capacity by proper utilization of their resources.
Thank You
By Group 10