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
• 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

6. 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

7. 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

8. 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

9. 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

10. 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

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
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

13. 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

14. 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

15. 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

16. Service Triangle
Service Sector Management
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 for Air
transport
• Product
• Price
• Promotion
• People
• Place
Service Sector Management

19. 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

20. Price
Low Fare Pricing
Value for Money Pricing
Premium Pricing
Promotion
 Frequent Flier Points
 Inflight – On demand Movies
 Travel Reward Programmes
Service Sector Management

21. 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

22. 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

23. 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