Railways 7ps

Presentation on service sector

Railways

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State owned company

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Monopoly of country’s rail transport

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In 1832, a proposal was made to build a railroad between Madras & Bangalore, but it never materialized.

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In 1845, two companies formed 

East Indian Railway Company operating from Calcutta

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 Great Indian Peninsula Railway operating from Bombay

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On December 22, 1851, first train is operational in India

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April 16, 1853, first passenger train introduced between Bombay & Thana.

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Railways grows in India with encouragement of the British Government.

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Due to Partition, India lost 40% of its existing rail network.

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At independence, 42 rail systems were existing

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In 1951, all systems were nationalized as one unit.

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Total of 6 zones came into existence in 1952, later extended to 16 zones.

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In 1985, steam locomotives are phased out.

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In 1987, computerisation of reservation first was carried out in Bombay

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In 1989, train numbers were standardized to 4 digits.

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In 1995, entire reservation system was computerized.

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In 1998, Konkan Railway was opened spanning difficult terrain through the Western Ghats.

In present scenario 

It is structure and sole of Indian economy

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It contributes 1.2 % to our country's GDP

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It covers from Baramulla from north to kanya kumari in south and oka in west to lake pane in east.

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Our railways carries 12500 trains per day and it carries 23 million passengers per day which is equal to Australia's population.

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We have 7400 freight carrier trains which carries 3 million tones everyday

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It is back bone of supply chain system in country

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It covers 1.16lac km across India

Cont.…

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13 lac employees are working in these sector

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Gross profit was 1 lac 39550 crores

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Operating expenses was 1 lac 30321 crores

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They are spending 94 paisa in every 1rs and 6paisa as surplus it is earning

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In recent times they have developed special milk tankers in association with AMUL

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100% FDI allowed in Railways

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Total Railway budget of 2014-15 was 65,450 crores

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Mumbai–Ahmedabad high-speed rail corridor is expected built in next year

7p’s of service marketing mix

 

product Product is a bundle of benefits and attributes capable of exchange or us usually a mix of tangible and intangible forms may be an idea, a physical entity, a service or a combination of three. Potential

Augmented

Expected

Core benefit

 

Price

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Price Used to achieve predetermined sales volume and revenue objectives. Price gives a product or service a perceived value in the eyes of the consumer Price Used to achieve predetermined sales volume and revenue objectives. Price gives a product or service a perceived value in the eyes of the consumer

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Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service

Cost structure

 

Place

Place is not only the location of the Railway station or facility but the location of points of sale that provide customers with access to passenger pr oducts. Place refers to the method of getting your product to the consumer - this could be a dealership or an online shop.

 

Process

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Process is the way of undertaking transaction, supplying information and providing services on a way which is acceptable to the consumer and effective to the organization

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Process refers to the procedures which are followed when delivering a service to a customer:

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How fast your able to book the tickets

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Are you able to find train on time

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Are you able to get assistance for your problems

 

Promotion

The most visible of the 4p’s, Promotional techniques aim to increase awareness and demand for  products.

Promotion is used in hopes of influencing the recipient's feelings, beliefs and behavior through any form of communication.

Promotional Mix Elements: 

Advertising

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Sales Promotion

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Public Relation

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Publicity

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Direct Marketing

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Internet Marketing

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Word of mouth

 

People

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Railways is a service and services are produced and consumed simultaneously, the role of service delivery personnel becomes extremely important.

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The interaction between the customer and the service provider in service industry means that the employees often represent the company to the customer

Physical Evidence The physical surroundings and facilities, that is, the “setting” where these encounters take place have also a bearing on service delivery in the minds of the customers. 

 Defined as the environment in which the service is delivered and where the firm and the customers interact and any tangible commodities that facilitate performance or communicate service.

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It helps to add tangibility to the intangible services.

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Enhance customer’s perception of the service quality

Job opportunities that we can expect are:

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There are 750 projects that has to be completed in next 10 years

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Those project needs people like Project manager, Procurement of raw materials manager

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As 100% FDI allowed, the corporate culture can be expected ,so we can expect a jobs of service manager

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The % of Finical manager jobs will be increased