sm irctc final
TRANSCRIPT
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A Study of Indian Railways
- In the context of Marketing of
Services
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Introduction
The 4thlargest railway network in the world.
Carries over 30 million passengers and 2.8 million tons of freight daily.
The 2ndlargest commercial or utility employer in the world with more than
1.36 million employees.
Owns 240000 (freight)wagons,60000 coaches and 9000 locomotives.
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Products offered
Passenger services:
- Generates 30% of the revenue.
- Sikkim and Meghalaya are the only 2 states that are notconnected by rail.
- Consists of various classes of travel with different pricesaccording 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 inGDP.
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Consumer purchase decision
process
PrePurchase
Stage
ServiceEncounter
Stage
PostEncounter
Stage
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Change in Scenario
Then
IR was the only
mode of cheaptransport
Functioning was
according to theSupply concept
Now
Availability of cheap,
alternate sources. Increase in the
purchasing power
Reduced time oftravel guaranteed byair travel
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Target Market Analysis
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Who are the customers?
- Based on Usage
The customers can be segmented into broad
market or business groups such as,
Commuters
Medium- Long Distance Passengers
Freight Customers
Parcels and Express Freight Customers
Commercial Property Lessors
Others(e.g Advertisers using railway property)
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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 re-balancing and quality enhancement measures.
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The Lower Income group (LIG) (< Rs. 3 lakh p.a)
The Middle Income Group (MIG) (Rs. 3-10 lakh p.a)
The High Income Group (HIG) (> 10 lakh p.a)
Who are the customers?
- Based on Income
LIG MIG HIG
Travel Yes Yes (IntermediateDistances)
No
Tourism No Yes Yes
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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
Middle Income Group
Super Fast trains.
Dynamic Pricing
Decreasing the fare in AC 3/2 tier
Cyber cafs and ATM in most Stations
E tickets made cheaper
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Share of Different Modes of Transport
17%
71%
6%6%
Railways
Roadways
Water Transport
Air Transport
Year 2001-02 2002-03 2003-04 2004-05
Railways 5093 4971 5112 5475
Airways 1281 1332 1454 1817
No of Passengers (in Millions)
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Competition Analysis
Roadw
ays Carry 90% of the
countrys
passenger trafficand 65% freight.
Road network ofover 4.42 mnkms.
Quality and
maintenance ofthe roads aresubjected tolocations.
Aviation Limited to Metro
cities
125 airportsincluding 11internationalairports
Ports 12 major and
187 minor and
intermediateports along 7500km coastline .
LargelyUnderdeveloped.
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THE 4Ps
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Product
Train Description
Duronto Express Non-stop point to point trains connecting metros and major state capitals.
Rajdhani ExpressAir-conditioned trains linking major cities to New Delhi. There are only a few stops on a Rajdhani
route.
Shatabdi Express and Jan
Shatabdi Express
These are air-conditioned and non-airconditioned respectively intercity trains for day travel. They
have only seats and not berths.
Garib RathThese trains contain AC three-tier and AC chair car coaches with fares less than the fares for the
same classes in other trains.
Superfast ExpressAverage speed greater than 55 km (34 mi) per hour. The tickets for these trains have an additional
superfast surcharge.
Express and Mail trainsMost common kind of trains in India. Stops at relatively important intermediate stations.
Passenger and Fast
Passenger
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.
Suburban trains
These trains operate in urban and suburban areas, usually stop at all stations and have unreserved
seating accommodation. Monthly and quarterly tickets for suburban trains are subsidized.
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Price
Consumer groups
First class, second class, sleeper, AC
Tatkal Reservation
Age Based Pricing
Concession for senior citizen Half ticket for children below 7 years
Quantity Based Pricing
Prices for single ticket
Prices for monthly/quarterly pass
Bulk booking discount for seasonal trains
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PlaceSR. No Name Route KMs Divisions
1 Central 3905 Mumbai, Bhusawal, Pune, Solapur, Nagpur
2 East Central 3628 Danapur, Dhanbad, Mughalsarai, Samastipur,
Sonpur
3 East Coast 2572 Khurda Road, Sambalpur, Visakhapatnam
4 Eastern 2414 Howrah, Sealdah, Asansol, Malda
5 North Central 3151 Allahabad, Agra, Jhansi
6 North Eastern 3667 Izzatnagar, Lucknow, Varanasi
7 North Western 5459 Jaipur, Ajmer, Bikaner, Jodhpur
8Northeast Frontier 3907 Alipurduar, Katihar, Rangia, Lumding, Tinsukia
9 Northern 6968 Delhi, Ambala, Firozpur, Lucknow, Moradabad
10 South Central 5803 Secunderabad, Hyderabad, Guntakal, Guntur,
Nanded, Vijayawada
11 South East Central 2447 Bilaspur, Raipur, Nagpur
12 South Eastern 2631 Adra, Chakradharpur, Kharagpur, Ranchi
13 South Western 3177 Hubli, Bangalore, Mysore
14 Southern 5098 Chennai, Tiruchirappalli, Madurai, Palakkad,
Salem, Trivandrum(Thiruvananthapuram)
15 West Central 2965 Jabalpur, Bhopal, Kota
16 Western 6182 Mumbai Central, Ratlam, Ahmedabad, Rajkot,
Bhavna gar, Vadodara
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Promotion
MonopolyNo 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 classPalace on Wheels, Deccan Odyssey
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Purchase Decision Process
Recognise the need to travel and the destination.
Evaluating the mode of travel based on time of journey, price, availabilityetc.
Pre-Purchase Stage
Point of purchaseOnline/Counter
Decision made based on past encounter
Customer experience starts at the entrance to the railway station.
Service Encounter Stage
Compare Experience with expectationSatisfied / Dissatisfied
Affects the customers future decision
Shares experience and influences decision of potential customers
Post Encounter Stage
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Service Quality Attributes (Valued on)
RELIABILITY
Railways areaccurate in Record
Keeping.
Railways areaccurate in timing
of Trains.
Railways performsService Correctly.
When you haveproblems Railways
shows sincereinterest in solving it.
Railways adheres topunctuality of
Trains.
TANGIBLES
Railway has modernlooking equipment &
infrastructure at stationsand trains.
2. Railways PhysicalFacilities like Lighting,
seating and Toilets areOK.
3. Staffs of Railways areneat in Appearance.
4. Time Tables, DisplayBoards etc are visually
appealing.
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EMPATHY
Railways give individualattention.
Railway operations areconvenient to passengers.
Railway employees givepersonnel attention.
It is easy to plan a railwayjourney.
ASSURANCE
Indian Railways istrustworthy.
You feel safe in yourtravel.
Railway employees arecourteous with customers.
Railway employees haveknowledge to answercustomer questions.
RESPONSIVENESS
Railway staffs tell exactlywhen services will be
performed.
Railway employees giveprompt service to customers.
Railway employees arealways willing to help.
Railway employees arenever too busy to respond to
customer requests.
Service Quality Attributes
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Service quality gap analysis
0
1
2
3
4
5
6
7
PerceptionExpectation = Difference
Perception Avg.
Expectation Avg.
Dimension
Perception
Avg.
Expectation
Avg.
Difference
Tangibles 2.92 5.68 -2.76
Reliability 2.8 6.05 -3.25
Responsive
ness 2.9 5.45 -2.55
Assurance 3.61 5.87 -2.26
Empathy 2.96 5.5 -2.54
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Gap in the Reliability ishigher which means, it is
Railways weakestdimension.
The most importantdimension is Reliability.
The least importantdimension is
Responsiveness.
The most satisfyingdimension is Assurance.
The least satisfyingdimension is Reliability.
Service quality gap analysis
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Travelling in peak hours is especially high. Non-frequent travelers also prefer totravel in nights to save the day time for work. Demand patterns can be analyzedusing large available data with Indian railways.
For increasing infrastructure as well as maintaining the existing infrastructure, labor isa must require input. Labor supply is not same every time and is dependent on thebusiness cycle.
Demand for facilities may increase due to delay in arriving time of trains at station,weather conditions, frequent travelling etc. Variables like weather conditionscannot be controlled, so we see a random demand fluctuation in use of facilities
Capacity Constraints Demand patterns
Time Charting demand patterns
Labor Predictable cycles
Facilities Random demand fluctuation
Managing Demand And Capacity
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Nature of Constraints How to overcome it?
Time Increasing the frequency of trains at peak times
Enhancing speed and safety
Labor Maintaining proper supply of labor
Replacing machines with human labor.
Facilities Availability of monthly passes and quarterly
passes, Concession for students
Cleanliness
To manage Capacity:
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Service Triangle
Service
Triangle
InternalMarketing External
Marketing
Training Inst
& PREM
EmployeeWebsite
Welfare Plans &
Perf Rewards
Websites& SMS
Promotion:
Palace on
wheels
Price based
consumer
Interactive
Marketing
May I
help u
Customer Care training
Inst
INDIAN RAILWAY
EMPLOYEE PASSENGERS
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Promotion
http://www.youtube.com/watch?v=rSiTde5U
MVI
http://www.youtube.com/watch?v=rSiTde5UMVIhttp://www.youtube.com/watch?v=rSiTde5UMVIhttp://www.youtube.com/watch?v=rSiTde5UMVIhttp://www.youtube.com/watch?v=rSiTde5UMVIhttp://www.youtube.com/watch?v=rSiTde5UMVI -
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Conclusion
SERVQUAL scale was developed to maesure the servicequality 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.
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Thank You
By
Group 10