Sm Irctc Final

8/13/2019 Sm Irctc Final

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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

Documents

Sm Irctc Final