PUBLIC TRANSPORT IN INDIA

The term “public transport” itself is a misnomer in many ways. Which transport system

in India is not public? The ubiquitous auto rickshaw is used as a “hop-in and hop-out”

coach in many parts of India, busses and rail also operate with a fixed tariff rate on

predetermined routes.

Transportation in India is a large and varied sector of the economy. The national

railroad was the major freight hauler at independence, but road transport in India grew

rapidly after 1947. Both rail and road transport remains important.

Although there is a large private-sector involvement in transportation in India, the

government plays a large regulatory and developmental role. The central government

has ministries to handle civil aviation, railroads, and surface transportation. Counterpart

agencies are found at the state and union territory level. Critical to improving the entire

transportation sector, the ability of the sector to adjust to the central government's

national reform initiatives, including privatization, deregulation, and reduced subsidies

plays a vital role. The sector must also adjust to foreign trade expansion, demographic

pressures and increasing urbanization, technological change and obsolescence, energy

availability, and environmental and public safety concerns.

It is however very easy to say that everything should be privatized. Definitely,

privatization brings in efficiency, accountability and much needed flexibility. Conversely

privatization also looks for returns, and merely privatizing the transportation industry will

not cure the problem. Will the corporate houses invest if they for one second think that

they will not see returns for a while - given the mess that transportation is in?

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INTRODUCTION

Indian Railways, It truly reflects India which is a land of diverse culture and Indian

Railways play a key role in not only meeting the transport needs of the country, but

also in binding together dispersed areas and promoting national integration It is

complex, sometimes unwieldy and unmanageable, and yet full of life. It prospers against

all odds! It is not just a transport organization. It is a great social institution. So many

things may go wrong in the country, but the Indian Railways somehow manages to keep

its head up above the waters, and it always runs the trains, serving millions of people

everyday. Truly, Indian Railways have emerged as the sinew of the Indian economy and

have reached out to bring together the great Indian family.

Indian Railways (IR) is the state-owned railway company of India.

Indian Railways

Type Public

Founded April 16, 1853, nationalized in 1951

Headquarters New Delhi

Key people Union Railway Minister:Laloo Prasad YadavMinister of State for Railways (V):R. VeluMinister of State for Railways (R):Naranbhai J RathwaChairman Railway Board:J. P. Batra

Area served India

Industry Railways and Locomotives

Parent Government of India

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IR has a monopoly on the country's rail transport. Indian Railways are the largest rail

network in Asia and the world's second largest under one management, after Russia.

Criss-crossing the country's vast geographical spread, IR’s work force is 1.5 million and

it runs around 11,000 trains everyday, including 7,000 passenger trains. The railways

traverse through the length and width of the country; the routes cover a total length of

63,028 kilometers. The Indian Railways own a total of 222,147 freight wagons; 37,840

coaching vehicles; 7,566 locomotives and have 6,974 stations; 300 yards; 2,300 good

sheds; 700 repair shops spread all over the country with a work force of 1.54 million

people.

Freight traffic on Indian Railways has registered an impressive growth in the last four

decades. IR is a leading passenger carrying railway in the world. Harnessing the potential

of these vast and widespread assets to meet the growing traffic needs of developing

economy, it is no easy task and makes IR a complex cybernetic system.

Railways have to perform the dual role of commercial organization and vehicle for

fulfillment of social obligations. In national emergency, railways have been in the

forefront in rushing relief material to disaster stricken regions. For meeting its social

obligations, railways are required to make investments that are un-remunerative and also

have to provide subsidized services. Unlike many foreign railways, which receive

government subsidies for public service obligations, Indian Railways are not specifically

compensated for these operations.

The role played by the Indian Railways in our country’s socio-political development is

indisputable. Apart from its stated duty of transporting men and goods across the length

and breadth of the country, it has played a stellar role in times of natural and man-made

disasters. The role of the railways becomes even more crucial to the development of the

country as we enter the 21st century and the pace of the growth of the economy

accelerates. The need for an efficient transportation sector would become more crucial

with every passing year. Thus it is necessary for the Railways to remain competitive, in

terms of both cost and quality of services, to ensure an efficiently functioning transport

sector in the country.

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HISTORY

The development of Indian Railways had its roots in the 1800s, when India was a

British colony. The British East India Company and later, the British colonial

governments were credited with starting a railway system in India.

The British found it difficult to traverse great distances between different places in India.

They felt the need to connect those places with trains to speed up the journey as well as to

make it more comfortable than travel by road in the great heat. They also sought a more

efficient means to transfer raw materials like cotton and wheat from the hinterlands of the

country to the ports located in Bombay, Madras and Calcutta, from where they would be

transported to factories in England. Besides, the mid-1800s were a period of mutiny and

struggle for independence in India, with uprisings in several parts of the country.

The British leaders wanted to transfer soldiers quickly to places of unrest. Railways

seemed to be the ideal solution to all these problems. Work began on the development of

railway systems in India in the early 1850s. The first commercial passenger train in India

ran between Bombay and Thane (places in western India) on April 16, 1853. The distance

of 34 kilometers was covered in about 75 minutes. Soon, railway lines began to be laid in

other parts of the country, mostly by private British companies, and the major regions in

India were connected by rail.

By the beginning of the 1870s, the total track coverage in India was 4000 miles. In

addition to commercial objectives, railways also began to play a social role in India. By

the end of 1880, the total track coverage increased to 9000 miles. In 1880, the Darjeeling

Steam Tramway started operating (the name was changed to Darjeeling Himalayan

Railway in 1881). This railway track was considered one of the greatest engineering feats

in the history of Indian Railways, crossing as it did, rough and dangerous mountain

terrain at a steep gradient. In 1890, the British Government passed the Railways Act, to

govern the construction and operation of railways in India. By the beginning of the 20th

century, there were nearly 25,000 miles of railway track in the country.

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PEST ANALYSIS

Political factors : Railways are owned and managed by the Government of India and thus

profit is not its main motive. It is meant to serve all the sections of the society, more so

the economically and social backward class.

The GOI has adopted proactive strategies for railways aimed at income generation and

cutting costs. Passenger awareness programmes are also being taken up through public

announcements, posters, films etc. For income generation, one example could be of the

various ads and posters displayed in the stations.

The government lays down policies to be followed by the employees. The GOI decides

the fares but has decentralized certain powers such as the General Managers of Zonal

Railways are given to finalize tenders and contracts up to a value of 15 crores at their

own level.

Privatization: the GOI was deciding to privatize the Indian Railways but did not, since

the general public started protesting against the decision to privatize, because if the

private companies entered the consumers would suffer because they would levy high

transportation costs.

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Economic Factors: Indian Railways-A Brief Background on Financial position:

Indian Railways used to carry around 89% of the freight traffic generated by the

economy, which was declined to a level of around 40% leading to stringent financial

position. 65% of earnings were from freight and 28% come from passenger traffic and

balance from Sundry and others.

Staff wages and allowances constitute nearly 37% of working expenses, 11% towards

pension, 8% for lease charges etc., it is to be noted that IR could not pay Dividend to

General Revenues for the last couple of years. In addition, Railways were in need of

around Rs.15000 Cr for meeting replacement of Over aged Bridges, Track and Plant

and Machinery etc., The Indian Railways was required to be operationally and

financially self-sufficient, and being a public utility, was expected to provide rail

transport at a reasonable cost.

To reduce the burden on the common man, IR deliberately kept passenger fares and

freight rates on products of mass consumption lesser than the cost of operation. This

policy resulted in earnings per unit of output trailing behind the increase in the

corresponding input costs. This is the background in which IR was functioning which

makes it obligatory for the railways to be Cost Conscious.

This conscious effort was taken by the current union railway minister Lalu Prasad Yadav

who brought a turn around in the railways. No politician has undergone such a dramatic

image makeover as Lalu Prasad, Union Railway Minister. Castigated for his ways and

ridiculed by the media for many years, he has suddenly been transformed into a

management guru under whose leadership the Indian Railways have undergone a

remarkable "turnaround". The railways are now working like a private sector

corporation.

The most striking part of Lalu Prasad’s rail budget presented was the profit of over

Rs.21,578 crores he announced for the current fiscal ending March 31 and a 14 per

cent growth in passenger and 17 per cent in freight traffic, despite stiff competition

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from low-cost carriers and truckers. The railways are poised to create history by

generating a cash surplus before dividend of Rs.20,000 crores as against Rs.14,700 crores

the previous year.

In improving profitability, reduction of input costs is a major parameter and since

expenditure on men and machine is more or less fixed, the only field where economy

may be possible is management of materials. It is in the interest of organization to keep

inventory holding at the lowest possible level consistent with the service. Inventory

management on Indian Railways has helped save thousands of crores of rupees from

being invested in materials.

Railways have made a major turn around in its financial health with its focus on reducing

the cost of operation. Indian Railways with an operating ratio of 78.7% has included itself

in a select club of world railways who are able to achieve an operating ratio of less than

80%. The achievement has also to be seen in the context that no price rise of freight

and passenger has been made in the last three years.

Indian Railways subsequently focused on few basic principles, i.e. focusing on its

customers, segregating the commercial and social segments of the traffic, devise market-

driven strategies for commercial segments, improve efficiency in the social segment, shift

focus from tariff increases to lowering of unit cost through increased volumes carried on

lesser number of trains, generate capacity by optimizing the systemic capability in full

and delegate and empower the frontline units to deliver on goals.

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Sociological Factors: The impact and importance of Indian Railways in the

country’s socio-economic development need no reiteration. Railways have been the

principal mode of transport in India. Railways have played a very important role in social

revolution as it is gradually wiping out the socio-economic disparities and bringing the

people of various regions close to each other. It has become a part and parcel of the

country’s life, influencing our art, history and literature as well as proving a unifying

factor for the vastly diverse people of the nation.

A reliable and cost-effective transport infrastructure paves the way for fast and

sustainable socio-economic changes of any developing country. This is all the more true

about India with its huge size and varied landscape and the second largest population in

the world. The Railways enjoys a unique position as it provides the most reliable, fuel-

efficient and eco-friendly mode of transport as it uses the energy more efficiently than

road transport. Mostly all the trains run on electricity hence it saves fuel. There is no

pollution. Therefore railways are affordable to even the weakest sections of the society.

Railways have never failed in fulfillment of the various social obligations. In national

emergency, railways have been in the forefront in rushing relief material to disaster

stricken regions. Social obligation and care for weaker section, senior citizen, students,

disabled persons etc enjoy concession benefit from railways. Indian railways have ‘garib

raths’ especially for the weaker section of the society. To make it more convenient for the

weaker section they are nominally charged.

New initiative taken during the last three years include reduction of age limits for special

concession to senior women citizens from 65 to 60 years, blind and mentally challenged

persons can now travel in AC classes on concessional rates. Free second class monthly

season tickets for school going children up to 10th standard for travel between home and

school was also introduced. Even tickets and coupons at concessional rates are provided

to student classes. Even patients suffering from diseases like cancer are given tickets at

half rates and also preferred in waiting lists. Indian railways also offer special coaches for

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women passengers. Some coaches are reserved especially for women others have time

slot for female travelers.

People now travel by Indian Railways in far greater comfort. The travel options today

range from ordinary second class to sleeper class and air-conditioned sleeper classes and

AC first class. The computerized reservation facility has made the rail journey more

comfortable and hassle- free. The facility is now available on more than 576 locations

throughout the country. All the terminals on the system are networked in a manner

which enables a passenger to book tickets from anywhere to anywhere in the country .

Enquiries about the reservation status and running time of trains are only a phone call

away through the interactive-voice-response system. People can also make online

enquiries through Internet about the railway time table, running status of trains and

reservation.

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Technological Factors: The Indian Railways has always been in the forefront of

development and utilisation of appropriate technologies for rail transport in the country.

They have an exclusive Research, Designs and Standards Organisation (RDSO)

dealing with all aspects of technology relating to rail transport. Train journeys may

never be the same again.

Indian Railways now have realized the benefits IT offers and decided to increase investment in IT

projects. Indian Railways and IT have always been like two tracks of broad gage, now

the distance between the two is decreasing and finally the Indian Railways is about to

run on IT track. IT applications will be deployed to increase passenger and freight

earnings, improve the image of the Railways in the eyes of the customer, reduce

operating costs, and ensure effective utilization of human and physical resources and to

help the top management in arriving at long-term policy decisions. Lalu Prasad Yadav,

union minister, Railways, has introduced the Railway Budget for the year 2007-08. In its

11th Five Year Plan, the Indian Railways is increasing the investment in IT projects to

several thousand crore rupees.

Railways have three major communication needs:

1. Communication within a station yard, in the area of operations and maintenance.

2. Communication in a running train, between the train crew – the drivers and

guards and between train crew and fixed station staff. T

3. Communication between two fixed points – station to station, covering distances

of about 30 to 40 km. Railways are a large network in which fixed-to-mobile and

mobile-to-mobile applications are continuously needed. The requirements for

radio systems are expected to grow constantly.

Trains are becoming very long and signals between the driver and the guard cannot be

communicated by hand or the use of sound. Motorola helped railways use wireless

technology: the driver and the guard now use walkie talkie – VHF radio sets/hand held

radio sets to communicate. Wireless two-way radios are also used for communication

between a locomotive and the fixed installation in order to warn the approaching driver

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about an accident or some other situation. Another application relates to an emergency

alarm system. Motorola made available a new feature in one of its radios, an alarm

button, which the Railways network customized to suit specific requirements.

Amongst a few technological initiatives undertaken by the Indian Railways, the one that

draws most attention is the issuing of tickets through the Internet. Although this service

has been there for the past few years, 2007 onwards, the railways intend to expand the

service to reach all parts of the country. As such, e-tickets will be issued through

‘e-seva’of state governments, post offices, petrol pumps, and ATMs. And to make online

reservation more accessible to customers, Indian Railways have tied up with Internet

service provider, Sify, to enable customer’s book tickets online against cash payment.

Services provided:

Train Enquiry System: ‘National Train Enquiry System’ has been started in

order to provide upgraded passenger information and enquiries. This system provides

the train running position on a current basis through various output devices such as

terminals in the station enquiries and Interactive Voice Response System (IVRS) at

important railway stations. So far the project has been implemented at 98 stations. 

Passengers often complained that telephone lines pertaining to railway enquiry

remained busy.  An attempt has, therefore, been made to expand its reach up to

village level by modernizing the train enquiry system and opening call centers at

Patna.  Under this initiative, people from any corner can enquire about arrival and

departure of trains, reservation status, fare, concessions, etc., by dialing a universal

telephone number 139 at local call rates.  To ensure that the lines do not remain busy,

depending upon the need, 200 to 500 lines is used in a call centre so that a large

number of people can access the facility of enquiry simultaneously.  Considering the

unprecedented success of this initiative, it will be implemented throughout the

country by the end of so that not only urban but also rural people are also able to get

the desired information instantly by dialing a universal number 139 at local call rates.

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Computerized booking: Indian Railway Catering and Tourism Corporation with

the assistance of Centre for Railway Information Systems has launched On-line

ticketing facility which can be accessed through website irctc.co.in.  Computerized

reservation facilities were added at 245 new locations. At present these facilities are

available at 758 locations in the country covering about 96 per cent of the total

workload of passenger reservation. The facility of booking tickets through Internet,

which was started for cell-phones, is now available on landline phones also.  Earlier

booking of rail tickets on the Internet was restricted from 8 a.m. to 10 p.m.  but now

this facility is available from 4.00 a.m. to 11.30 p.m. without a break. Computerized

Reservation related enquiries about accommodation availability, passenger status,

train schedule, train between pair of stations etc. have been made web enabled. A

common website integrating the more than 50 different web-sites of Railways will be

developed with built in   facilities like e-payment and e-tendering.

Computer based unreserved ticketing: To take care of the unreserved segment of

the passengers, a new pilot project on computer based unreserved ticketing has been

launched. Of the 13 million passengers served by the network everyday, nearly 12

million are unreserved passengers. To cater to this huge segment, computer based

ticketing systems has been launched for all stations in Delhi area and in due course

throughout the country. With this, unreserved tickets can be issued even from

locations other than the boarding station and will reduce crowds at booking offices

and stations.

Claim Offices being computerized: Railways have embarked on a programme

of computerization of ‘Claim Offices’ so as to provide on line information to

claimants about the status of claims. This will help the customers to find unconnected

consignments and will also be a powerful tool in reducing the duplication of claims.

Computerized registration of claims in Zonal Railway Headquarters has already been

started from April 2004 and it was expected that full computerization of claim offices

will be completed during the current financial year.

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Information by SMS: Commuters can now access information by sending a simple

SMS to their local operators. For example, Hutch users on Mumbai can get

information regarding PNR status, Schedule, Train Timetable, Seat Availability etc

by sending the message on the number 12323. Similarly, users of other service

providers can send message to their respective operators and get information.

Other modes of issuing tickets: A pilot project for issuing monthly and quarterly

season tickets through Automated Teller Machines (ATMs) has been launched in

Mumbai this year and has been found very successful. Another pilot project for

purchasing tickets including monthly and quarterly season tickets through Smart

Card has also been launched.

RFID technology: The Indian Railways is all geared to conduct a pilot project for

automatic identification of railway wagons using Radio Frequency Identification

(RFID) system across India. The Centre for Railway Information Systems (CRIS)

will oversee the pilot, run by a private firm. The Indian Railways have decided to

use RFID for effectively monitoring and utilizing the movement of wagons across

the country.

Indian Railways is the largest in the world and possesses about 230,000 freight wagons

known freight railcars. Out of these, 200,000 wagons run on the Broad Gauge (BG)

system. In order to improve the effective utilization of these wagons, it is proposed to

implement a system of online tracking of these wagons as they move on the Railway

system (comprising approximately 62000 route kilometers, including 48000 route

kilometers on the BG system), using automatic identification and data capture methods.

This pilot project will be implemented in the Talcher – Paradeep – Vishakhapatnam

section of the East Coast Railway. Data will be read at the entrance and exits to the yards

at Talcher, Paradeep, and Vishakhapatnam, and the data of wagon numbers read from

each tag, with timestamp, will be updated in the FOIS application and / or with any other

application at a later date.

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Tag readers would be placed at various locations along the track. Handheld readers would

also be given to staff at key railway installations. The readers would read identification

data off the tags. This data would be transmitted to a central server. The central server

would maintain historical data of wagon movement to enable tracing of wagon

movements as well. A set of standard interfaces would be built into the central server for

the use of different applications requiring the wagon track and trace data.

Tagging of the wagons owned by Indian Railways and installation of trackside readers

will be executed in phases. The scope of the present tender is a pilot project on one

section of Indian Railways. Before going in for a full-fledged implementation effort on

IR, the results of the pilot system will be intensively monitored and evaluated for a period

of approximately two months to identify potential problem areas and formulate strategies

to eliminate the identified problems.

Indian IT companies have hoisted the national flag all over the world.  Railways invite

these companies to take part in various IT projects of the Railways under public private

partnership.   

7 P’S OF MARKETING

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Product: A product is anything that can be offered to a market to satisfy a want or a

need. Products that are marketed include physical goods, services, events, persons,

places, organizations, etc. in planning its market offering the marketers needs to address

four product levels and each level enhances customer value. The four basic levels are

Core, Expected, Augmented and Potential.

Core Services : The Core Service is the reason for being in the market. The core service

offering is the necessary output of an organization which is intended to provide the

intangible benefits which the customers are looking for. At the fundamental level it can

be said as the service or benefit the customer is actually buying. The purchaser of a

railway service for example is apparently buying “transportation”. The main products of

Railways are thus concerned with passengers and goods services. At the second level the

marketer has to turn the core benefit into a basic product. Thus the railway service would

include berths, seats, bathrooms, and rods to hold, overhead racks.

Peripheral Services: Peripheral services are those which are either “indispensable for the

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Core Product

Tangible/Expected

Augmented Product

Potential Product

execution of the core service or available only to improve the overall quality”. The

peripheral service offer represents both the expected or tangible product and augmented

product.

a) Expected or Tangible Product

It refers to the set of attributes and relates to customers expectations of what kind of

services are available to satisfy their needs. The tangible offers are controllable and ones

which can be seen. The announcement of the next coming station in a suburban railway

is a service provided by the railways which satisfy the needs of the passengers.

Cleanliness: It is the most basic of all amenities which any individual requires. It is

significant that train have good washrooms.

Timeliness: Arrival and departure of trains on time is the most expected and the

basic service which could satisfy the needs of the passengers. If the trains are late

passengers should be informed about the delay. If the delay is beyond a particular

time there should be boarding and lodging arrangements for the customers.

Safety of passengers: It is of prime importance so that the passengers feel secured.

Proper posting of the Railway police force and the dog squad will enhance the

confidence of the customers.

Because most trains can meet this minimum requirement, the traveler normally settles

for whichever train is the most convenient and least expensive.

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Augmented Product: At the augmented level, service suppliers offer additional benefits

to the customer that is beyond the tangible evidence. The common people have to travel

in suffocating crowds due to paucity of unreserved second class coaches.  Therefore, it

has been decided that from the current year in every newly introduced train, in place of

four; six unreserved second class coaches will be introduced. Cushioned seats will also

be manufactured for unreserved second class coaches as is the case for sleeper coaches. 

Alongside, excluding fully air-conditioned AC and Jan Shatabdi trains, in existing trains

also wherever possible, efforts will be made to increase the number of unreserved

second class coaches.

In case of longer journeys senior citizens and ladies face considerable inconvenience

when they are allotted upper or middle berths.  Therefore, the railway authorities have

decided that a quota of adequate lower berths will be provided in AC and Sleeper classes

for senior citizens and women above the age of 45, traveling alone. Passengers are

offered lunch and dinner at nominal price in mail trains if there is a pantry car attached

then.

Additional Services:

1. Pantry menu in compartments: Passengers travelling by the Indian Railways will

now have more to choose from than just the regular "vegetarian and non-vegetarian"

meals served from the pantry cars.

The new menu put together by the Indian Railway Catering and Tourism Corporation

(IRCTC) Ltd promises passengers more "quality and quantity" than ever before. And

with the food menu pasted on the walls of the compartment, passengers will not have to

wait for the pantry attendant to know what's cooking.

The menu, besides "indicating the food items being served", will mention the quantity

and selling price of the food items, and telephone numbers where they can register their

complaints and suggestions round-the-clock. The terms suggest rotation of menu and

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multi menu, parallel diet menu, diabetics' menu for meals served in Rajdhani/Shatabdi

trains and other mails and trains.

2. Special Coaches for women and vendors: Special coaches for women and vendors

have been added in railways.

Service Details

First Class Waiting

rooms

Yes

Seating Area Yes

Seating Area – Note There are seats and benches sited at various locations on the

station.

Waiting Rooms Yes

Women-Only Waiting

Room

No

Trolleys Yes

Refreshment Facilities Yes

Showers Yes

Pay Phone Yes

Pay Phone – Note Telephones are available on the station concourse and on

platforms

Post Box No

Train Information

Office

Yes

Train Information

Office – Note

At the station masters office

ATM Machine Yes

ATM Machine – Note Located on the main concourse.

Vendors/stalls Yes

Vendors/stalls- Note Newsagents, confectionary shops Located just inside the

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station entrance.

Public WiFi Not yet supplied

Information Centers Monday-Saturday 05:30-00:30

Sunday 07:30-00:00

Toilet Facilities Note The toilets on the main concourse are open as stated below.

24 Hr Ladies and Gentlemans toilets are situated on Platforms

Men's Toilets Yes, 24 hours

Women's Toilets Yes, 24 hours

Wheelchair-accessible

Toilets

Yes, 24 hours

Potential Product: Innovations and product differential is the bases of a Potential

Product. Innovation is not only an invention or discovery.  Using new methodologies in

daily processes is also innovation. The railways have designed coaches with new

layouts, having significantly higher capacity than the previous coaches.  These coaches

will be convenient and comfortable for the passengers.

Some of the innovative measures announced in the Budget deserve appreciation. These

include the proposal to include wagons of 15-20 tonnes, the change in the dimension of

the containers to enable running three stacks, and the increase in the seating capacity of

the various types of coaches. That may include on-board entertainment and fast food

facilities along with other amenities as also strategies for energy conservation and safety

steps.

IR may also outline strategies for greater coordination between States and railways to

deal with the situation. Traveling could be made pleasant with railways deciding to rope

in fast food chains and install vending machines for beverages and food items.

Efforts are made to turn around the image of the railways through the food served on

trains and services available at the stations. Call centre facilities, SMS alerts, tickets at

petrol pumps and ATMs were among the new measures already in place by the railways

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Core Product

to enhance its consumer-friendliness. Other facilities like car rentals and value-added tour

packages through websites are also in the pipeline.

Increasingly railway organizations are diversifying their activities in fields which are not

wholly related to their core business, such as commercial property, or real estate

development etc.

All trains on IR are identified by primarily through their numbers (either the 4-digit

nationwide numbers or the zonal numbers for local passenger trains). However, as a

convenience, most trains (other than some very frequent local services such as

EMU/MEMU or passenger shuttles) are referred to by names in IR's literature and also

by the travelling public. The most common way to name a train is by providing the

endpoints of the train and the train class designation, e.g., Bangalore-Chennai Mail,

Pune-Hyderabad Passenger, etc. A lot of trains have specific names, however , based on

names of landmarks (rivers, mountains, etc.), regions, famous personalities, abstract

qualities, and so on.

Freight trains generally only have generic service-based names such as 'Green Arrow',

but a few services have specific names, e.g., Shalimar Special, Ahmedabad Arrow, etc.

Product width

1. Passenger Train: Indian Railways have been divided into 9 Zones - Western,

Central, Eastern, Northern, North Eastern, Northeast Frontier, Southern, South Central &

South Eastern covering the largest route length of over 63000 Kms of total Indian

boundary. It is the most convenient way of traveling if you are traveling on a budget. The

railways have one of the most efficient communication systems between 2 stations.

Passenger train product line:

Tourist Trains

Palace On Wheels

Royal Orient

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Fairy Queen

The Kangra Queen

The Desert Queen

The Great Indian Rover

Other tourist trains

Hill Railways

Darjeeling Himalayan Railway

The Nilgiri Mountain Railway (or the Ooty Rack Railway)

"Toy trains" : The NG hill trains

Rajdhanis: Rajdhani trains are fast passenger trains connecting various cities to the New

Delhi area (the capital; "Rajdhani" means a capital city in Hindi). They are generally

given operational priority as they are "prestige" trains. The early Rajdhanis all had AC

chair-car accommodations; however, now they all have AC sleeper accommodations.

Shatabdis: The Shatabdi Express trains are fast inter-city express trains which aim to

provide daytime service noticeably faster than the other "superfast" trains over medium

distances, generally providing for a same-day return (leave early in the morning, and

return late at night).

Other Famous Trains

The Grand Trunk Express

Frontier Mail

Punjab Mail

Flying Ranee

Deccan Queen

The Boat Mail

The Imperial Indian Mail

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Janata Express, Jansewa Express, Matribhumi Express, Jana Shatabdi Express,

Garib Rath trains

Samjhauta Express

Lifeline Express: The Lifeline Express or Jeevan Rekha Express is a mobile

hospital in a train. Gandhi Puts Health Train For Rural Areas On Track. A brand

new four-coach train offering free up-to-date diagnostic and surgical treatment for

The new train, inaugurated by Gandhi at a function presided over by Railway

Minister Lalu Prasad, replaces the Lifeline Express that had been launched in July

1991 by Impact India Foundation in collaboration with Indian Railways and the Rajiv

Gandhi Foundation. The coaches were redesigned and restored to be a fully

functional, air-conditioned hospital, equipped with all modern medical and surgical

facilities, including training facilities for up to 50 medical personnel.

Surgeries are conducted during its four-six week stay at a particular location. Each

five-week stop costs around Rs.2 million. The train is equipped with three operation

tables, modern surgical equipment and accessories, kitchen, restrooms, sterilisation

equipment, recovery room for the patients, audiometric/ophthalmic room and X-Ray

room. The project is funded by Impact UK, charitable organisations, Indian corporate

houses and individuals.

According to the Impact India website, the train's services include surgical

interventions to restore movement to polio and orthopaedic patients, cataract

operations as well as preventive treatment in the form of immunisation,

administration of nutrients and creating health awareness among the deprived in rural

and semi-urban areas. The original Lifeline Express was formed using four used

coaches given by the railways. Along with the Impact India representatives, Sonia

Gandhi had approached the former railway minister George Fernandes for providing

four coaches to run the train hospital. The coaches in the new hospital on wheels were

manufactured at the Indian Coach Factory, Perambadur.

Patiala State Monorail

22

The Presidential Saloon

Suburban Trains in Mumbai

Accommodation Types

Berths

Seats

Chair car

Product Variations:

The 1st class is mainly for 6 persons in day and converted in to a cabin for 4

persons for night travel. They are the most expensive of all the tiers. Generally

there is only one coach of this class.

The AC 2tier class has berths for night and seats for day. It is meant for 6 people

and in the night it is meant for 4 people. In this case there are curtains instead of

door for maintaining privacy. It is mostly recommended for comfortable traveling

for long distances as movement of persons in the compartment other than reserved

people is not permitted. Bedding is provided at night from an attendant. However

there are only 2-3 coaches of AC 2tier per train of 15-17 boggies, hence ticket

availability is difficult if not booked well in advance.

AC 3tier is meant for 8 people. The seats are cushioned and it is a more

economical way of traveling.

Second Class (General Compartment) – 2 to 4 coaches in a train, usually 2 just

behind the engine and 2 at the end of the train. One need not do any reservation

for traveling in this. Just buy the ticket from the counter at railway station even

when the train is standing at the platform ready for departure.

This is the cheapest way to travel in India. No sleeping berths are available. The

facilities are bare minimum. Food is available from the vendors. 4 toilets (squat

type) with water are attached to each coach. Fans are provided. Two washbasins

are also provided at both the ends.

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AC Chair car (CC)- Generally attached to the day running trains only. Looks

more like an economy class seat in the plane. A bit wider seat but. Many day

running express trains have this class.

Break Van - These are the luggage van attached at the end of each trains. If one

has any huge size articles (bicycle, Motorbike, camping equipment. etc) one can

carry in the same train they are traveling.

Luggage need not have to be booked along with reservation.

Pantry Car - Most of the long distance trains have this facility. One can get

meals, snacks, coffee, tea (chai), cool drinks etc in this. Staff comes to the seat

with supply. Also one can go the car and order directly. One needs to pay for what

you buy.This is basically a vegetarian facility.

2. Freight services: Freight is the backbone of the Indian Railways and contributes

more than 66 per cent of this organisation's earnings, even subsidising the losses it makes

on passenger operations.

For any rail road company / organisation continuous cargo visibility is viewed as the

most critical component of its physical distribution system. FOIS enables freight

customers to have instant access to information regarding the current status of their

consignments in transit, allowing them to implement just in time inventory management

systems and better logistics management. It is a system for management and control of

freight movement that also assists managers to optimise their asset utilisation.

3. Pipeline transportation is peculiar in the sense that it does not require any vehicle.

It is one way method of transportation in which mechanical power is required for its

operation. It is meant for the transportation of liquid commodities like urban water, gas,

petroleum or natural gas. This mode of transportation is a recent development in the

Indian context. In the Indian railways pipeline carry white products. There are 4 pipeline

systems in the country.

4. Railway mail services: Indian railways are the mainstay of the present postal

systems. For carrying heavy mails and parcels and for linking the postal systems with the

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remotest parts of the country the Indian railways are and will continue to remain the most

important means of establishing a postal network in the country.

PLACE MIX

Place refers to the contact point between the service provider and who gets the benefit of

the service i.e., customer. “Place,” not only means the locations of producer facilities, but

also the locations of all points of sale at which customers may have access to the product

or service. Two main issues which should be taken into consideration when taking

decision regarding the place are accessibility and availability of the service to the

customer.

The Indian railways make provisions for offering this service and the railway personnel

working at different stages in different capacities offer the same to the users. In this

context it is pertinent that distortion in the process of offering is regulated and any gap

between the service promised and service offered is bridged over.

In respect of processing of services, time management plays a significant role. The late

running of trains is an important aspect influencing the reality and generating the gap.

The time management needs an intensive care in the whole process of offering the

services. Off late the Indian railways have sophisticated device to manage and control

man and technologies. In addition to passenger services they also need to make sure that

goods booked for a particular destination reach on time without damage.

Distribution network of Railways is as follows:

Franchisee Agents E-Booking Ticket Counter

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NO YES YES YES

PEOPLE MIX

In any utility undertaking the management of people is a difficult task and requires more

professional excellence People play a major role in service organizations. It is their

responsibility to see that the customers’ needs and wants are satisfied. This requires the

employees to be well motivated & focused about their job. The providers have to be in

the highest state of readiness and also in the highest level of skill. People - in service

marketing includes

EMPLOYEES

OTHER CUSTOMERS

Employees in Indian railways: The Indian Railways with a work force of nearly 1.5

million is one of the biggest employers in the world. The Indian Railways are broadly

divided into zones, divisions and departments. Each division has both technical and non-

technical departments. Technical departments include civil and mechanical engineering,

signalling and telecom, while the non-technical departments include accounts, personnel

management, and Railway Protection Force (RPF) or security and traffic services.

Each department has staff at four levels:

Group D staff members include helpers, khalasis, porters and coolies. The minimum

qualification for this level is a 10th standard pass, and remuneration is Rs.1,200 per

month.

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Group C staff is recruited on the basis of the Railway Recruitment Board (RRB). This

Group includes assistant stationmasters, drivers, motormen, guards, signal and

mechanical inspectors. Most members of the C staff have to be graduates. However,

those in the technical category like supervisors and senior sectional engineers need to

have diplomas and degrees in their respective areas of work. Those trying for the post of

Supervisors need to write the examination conducted by the Railway Recruitment Board

(RRB). The lowest level at which one can join is as a ticket checker or clerk, for which

one needs to have passed their 10th standard with a minimum of 50%. The salary is

Rs.3,500 per month while higher level employees, such as senior clerks and

stationmasters get Rs.5,000.

Group B officers are directly promoted from Group C. After about 10 to 15 years of

service, or alternatively after working for 5 years and then appearing for an exam called

the Limited Department Examination (LDE), 5-10 % of Group C employees are

promoted to Group B. The salary varies between Rs.7000-8000 and one reaches the

status of an officer.

Group A officers constitute the top-most level in the railways. They are recruited

through the UPSC exams, and must have an engineering background. The various exams

under the Indian Engineering Services (IES) are the Indian Railway Service of Engineers

Exam (IRSE), the Indian Railway Service of Electrical Engineers exam (IRSEE), the

Indian Railway Service of Mechanical Engineers exam (IRSME) and the Indian Railway

Service of Signal Engineers exam (IRSSE). One can start out as a Group A Assistant

Officer with a salary of Rs.8,000 per month.

For the selection of mechanical engineers, a Special Class Railway Apprenticeship

Examination is held. The chosen candidates are given a four-year probationary training.

The varied operations of the Indian Railways provide openings in many areas and can

accommodate persons of various capabilities. However, despite having so many

divisions, cadres, etc., the prospects, promotions and remuneration are at par in all the

divisions. Remuneration for railway officers is fixed by the Government and follows the

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pattern of all other civil services. Other benefits attached to the railways are facilities like

travel allowances, educational facilities, housing facilities, pension, health care, free

railway passes and so on.

To have the optimum output from the workforce, higher motivation level and stress free

environment is to be ensured. Suiting the job requirements, skills of manpower have to be

suitably developed requiring adequate attention in their training facilities.

Recruitment

The focus will be on appropriate aptitude while selecting personnel.

A review and update of minimum qualifications prescribed for each category will

be undertaken taking into account required knowledge, skill and availability of

trained manpower.

To improve the quality of recruitment of safety category staff, the job eligibility

standards would be raised for general as well as reserved category candidates.

Gangmen and drivers above the age of 50 and upto 57 years would be given

option to seek voluntary retirement and one of their wards will be given

appointment, if eligible.

A suitable computerised test programme would be developed and standardised for

determining the physical characteristics such as alertness, reaction time, stamina

and ability to withstand frequent changes.

TRAINING

Types of Training

Initial training at recruitment stage

• Promotional Training

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• Prescribed Technical Skill upgradation Training

• Periodical Training related to safety, puctuality, publicity, passenger amenities and

   customer care

• Special Training courses

• First Aid Training courses

Departmental Staff Training Institutions

Zonal Training Centre

Zonal Electrical Training centre

Supervisor Training centre

Zonal Civil Engineering Training centre

Electric Traction Training centre

Diesel Traction Training centre

Basic Training centres in each Division and Workshop for technical staff

Computerisation: The Personnel Department of railways is moving towards

modernization, transparency in functioning, deliver promptly and effective service to its

internal customers who are none other than the employees of the railway itself, has

computerised its various activities.

• The salary payments of all the employees throughout the railway have been

computerised. The computerised payslips given to the employees show details of pay,

allowances, deductions, leave balance, increment due date etc.

• The Personnel Department at Headquaters, Divisions and other units of the railway has

computerised different activities like , seniority lists of the employees, handling of the

grievances of the employees, details pertaining to the appointments made/being made,

pensionary and terminal benefits of the employees etc.

Future plans for the new year

On-line leave enquiry

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On-line PF enquiry

On-line Pass Account enquiry

On-line Vacancy enquiry

On-line Rules enquiry

RETIREMENTS

Types of Retirements

• Voluntary Retirement - One who completes 20 years of service can retire voluntarily

with bonus benefits.

• Normal Retirement -On completion of 60 years of age

• Other than Normal Retirement like Death, Medical Decategorisation and Missing

Benefits after Retirement

• Monthly Pension @ 50%- of average emoluments drawn during the last 10

months/Family

   Pension @ 30 percent of last pay drawn for those completing 33 years of qualifying

service

• Retirement/Death Gratuity

• Commutation of Pension to the maximum extent of 40% of monthly pension

• Leave encashment

• Insurance amount

• Provident fund

• Post Retirement/Widow Complimentary yearly passes for free travel on Railway

Network

• Kit Pass

• Transfer pass, Transfer grant, Packing Allowance and Travelling Allowance

• Compassionate Appointment in case of death/missing

• Railway Employees Liberalized Health Scheme for medical assistance on par with

serving employees .

Welfare activities at field level

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• Annual Sports Competitions by South Central Railway Sports Association

• Annual Cultural Competitions

• Colony care committees to take care of amenities of residents in railway colonies

Redressal of employee grievances

• Well-trained Ministerial Staff in Personnel Department in each Division

• Grievance Cell in each Division headed by Divisional Personnel Officer

• Divisional Railway Manager Line Inspection

• GM’s Annual Line Inspection

• Memorandums received during Departmental Officer’s Inspection

• Welfare Inspectors personal contact scheme–every employee will be contacted once in a

year

• Memorandums directly received by General Manager, PHODs, DRM, Branch Officers

every day from 16hrs. to 17 hrs.

Educational Facilities

• 1 Degree College at Lallaguda, Secunderabad

• 4 Junior Colleges at Secunderabad,Guntakal, Vijayawada and Kazipet

• 14 High Schools in six Divisions

• 2 Upper Primary Schools in Two Divisions

• 9 Primary Schools in five Divisions

• 22 Austerity type Primary Schools in five Divisions

Recreation

• Officers Clubs for Recreation of Officers

• Staff Institutes for Recreation of Staff.

• Community Halls for Customary functions

• Holiday Homes for Pilgrimages/Outings

• Rest Houses for rest on short leave

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General facilities

• Subsidised Hostels for economically backward Students

• Cycle/Scooter/Car/Computer/House Loans

• Privilege Travel Passes and concessional P.T.Os

• Canteens with nutritious food in all major Centers of workforce

Co-operative Scheme

• Co-operative societies for economic living

• Cooperative Credit societies for Banking purpose

• House Building Society for Housing activities

Benefits

Free train travel through the country and free accommodation. All groups are entitled to

pension and medical aid. Accommodation is made available to 30% of Group C

employees. All Group B employees are entitled to free accommodation and telephone,

while Group A officers get accommodation in Railway Colonies and telephones.

Indian railways have been offering to their employees a no. of incentives in relation to the

salary and perks linked to the price index related to the price index and inflationary

pressures. There are necessary ongoing training programmes refresher courses seminars

and workshops where employees in addition to efficiencies are made aware of the value

orientation processes.

Customers of Indian railways

People mix not only includes employees but also customers. The customers are to be

treated with respect and courtesy and vice-versa. Railways announce a reduction of

Rs.1 per passenger in the daily ticket fares of non-suburban ordinary passenger and

non-super-fast mail-express trains.

The 'aam admi' gave the thumbs-up to the railway budget happy with the fare cuts and

looking forward to implementation of the pro-consumer services announced.

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“The best part of the budget is that the profit earned by the railways in 2006-07 has been

shared equally with the passengers by slashing the train fares across the board," said

Satinder Wadhwa, a local trader. "Reduction in freight charges will help in containing

the prices of essential commodities in the country," Wadhwa said. Another passenger,

Romila, said the universal enquiry number 139 would remove all confusion about the

railway enquiry number among the passengers.

PRICE MIX:

Price is one element in the marketing mix that produces revenue; all the other elements

produce costs. Prices are easiest marketing mix elements to adjust; product features,

channels and even promotion take more time. Price also communicates to the market the

company’s intended value positioning of its product or brand.

Pricing decisions occupy a place of outstanding significance, especially in a utility

undertaking. Making available the public transportation facilities to the masses and

strengthening the infrastructure base for an all-round development of the country

can’t be possible unless public transport contribute substantially to the development

process. This necessitates due attention on the financial health of Indian. The thrust of the

Railway Budget for 2007-08 appears to be an extension of the strategy of volumes to the

passenger segment, despite the healthy growth of passenger earnings by 14 per cent. It is

also presumably an attempt to curb the inflationary tendency through an across-the-board

cut in passenger fares for all classes and by reducing the freight rates of diesel and petrol

by 5 per cent and iron ore by 6 per cent.

Second class fares have been lowered by a rupee and sleeper fares by 4 per cent. In

many sections, the rail fare is lower than the bus fares. As it is, the Rilaways makes loss

on passenger services of Rs 7,779 crore on non-suburban sectors. Unlike the West, where

losses on account of social service obligations are compensated, the Indian Railways does

not get any support from the Exchequer. So a decision to cut fares can be justified only if

33

a costing exercise reveals that with the increased carrying capacity, the revenue receipts

will meet the cost of operation or reduce the losses.

Freight segment

In the freight segment, with the spurt in incremental loading, the Railways should have

gone in for measures that would have resulted in greater share of rail co-efficient and

attracted high rated commodities and petroleum products. This is particularly important

as the loading figures up to end of December, though higher in absolute terms, do not add

comfort as the rail co-efficient (quantity moved by rail out of production and imports) has

declined (Table).Except for coal and cement, there has been a decline in the rail co-

efficient of other commodities; this should have been gone into and remedial steps

initiated. The Railway rates are quite competitive even now.

New set of air-conditioned chair cars and three-tier coaches in which fares would be 4 per

cent lower during peak and 8 per cent less in off-peak seasons.

The Union Minister for Railways announced that there would be no increase in passenger

fares during the year 2007-08 for any class of travel. A Variable Fare Scheme has been

proposed to be introduced under Dynamic Pricing Policy. Discounts in fares at the rates

indicated below shall be given in various classes of travel.

Class Busy Season Lean Season

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AC First 3% 6%

AC 2-Tier 2% 4%

AC-3 Tier (81 berths) 4% 8%

AC-3 Tier (64 berths) Nil Nil

AC CC (102 seats) 4% 8%

New Sleeper Coaches (84

berths)

4% 4%

Sleeper Class (72 berths) Nil Nil

In Popular trains, class-wise discounts indicated above for Busy Season shall be

applicable through out the year. The list of popular trains shall be notified separately.

The government can also consider differential pricing. This differential pricing should

be based not just on the low demand routes, wherein low prices are charged but also in

the off-seasons and non-peak hours in an otherwise high demand route. Extending this

point further the government could go for congestion pricing in routes where there is very

high demand for this service and the supply is limited by charging higher prices in these

areas.

Based on the above stated reasons and the facts that the steadily increasing disposable

income of the middle and upper classes has made them less price sensitive than earlier

the committee made the following recommendations.

Revenue potential from the upper classes needs to be exploited to the maximum

extent. They also need to rebalance passenger revenues in a manner consistent

with the elasticities of demand for various classes.

Creative pricing techniques designed to maximize utilization of available

capacity, like off-season discounts, standby discounts etc to be used to augment

revenues.

Streamlining the ticketing procedure by exploiting opportunities on the net.

35

Improving freight services in terms of waiting times, certainty of delivery

schedules, convenience of loading unloading etc.

IR has to offer a total logistics package, i.e. it has to develop the capability to

picking up small roads, aggregating them initially then disaggregating and

delivering them.

The margins on the lower class passenger seats range from the non-existent to very

minimal. Hence any profit that has to be met has to be through exploiting the higher class

passengers. Moreover increasing lower class passenger fares represents too much of a

political risk, so that is unlikely to take place.

One area that has been neglected is the business traveler segment. More services of the

kind provided by trains like Shatabdi should be started between major business centers

e.g. Madras-Bangalore etc.

Another technique that IR might consider developing is the policy of recovery of at least

all of the variable costs associated with every seat in a train. This method is known as

marginal cost pricing. The seats which would otherwise have gone unsold on a

particular trip could be sold off at minimum prices subject to the fact that the price at

least recovers the variable cost. The options like off-season discounts, standby discounts

etc could be utilized in this manner. However this would require a high degree of local

autonomy at the lowest levels of decision making.

Railways have shown that one can earn even while serving the common people, by

playing the volume game.

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PROMOTION

Of the different forms of promotion, sales representation has been the most widely used

in railway business. However, railway sales forces mainly has a passive or reactive,

rather than a proactive, role, servicing existing customers rather than seeking out and

securing new customers, order taking rather than order generating. Furthermore, these

sales forces have not been organized in a way, which would assist them to actively

promote railway services and secure new business.

But in recent year, because of tough competition from low cost airlines, RAILWAY is

now promoting its luxury trains like Rajdhani express, Shatabdi express, and air

condition 1st class services of other express train. For example recently they introduce

new imported coach from Germany in Rajdhani express and also provide best services in

catering, cleanliness, in special and luxury train etc. RAILWAY has also started

educating and advertising new services like reservation of ticket through Internet, SMS,

and holiday special train during rush to traffic during holidays and festival seasons. Metro

which is recently introduced in Delhi is very comfortable for travelers. This train is very

clean, fully air-conditioned and is economical too. Government is also planning to

introduce Metro in Bombay.

37

In the context of promoting the service there are incentives for the users and travel

agencies and to the frontline staff who are directly instrumental in increasing the

business. The incentives to the customers would be in the form of seasonal concessional

services, circular trips etc.

Word of mouth: it is an important component of promotion in which the satisfied group

of customers acts as a hidden sales force and keep themselves engage in promoting the

business without charging anything.

The aforesaid promotional measures play a decisive role in promoting the business of

Indian railways. It is the responsibility of professionals serving the Indian railways that

they make an optimal mix of the different components of promotion and use the most

effective and sensitive component as per their potentials and requirements. These

promotional measures help railways in convincing those segments of the society who are

not familiar with the high magnitude of social costs and the problem of cost-price-

squeeze being promoted by the government.

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PHYSICAL EVIDENCE

Train colour: in train there are different compartments for different people. There are

first class, second class and handicap class. There are also compartments for luggage. To

distinguish first class they have the lines of red color, so than one can come to know that

which is first class and which one is second class and in ladies compartment, they have

distinguished with green color.

Seats: The train has a capacity to seat 100 commuters. The

seats are of steel in the second class. In the first class there are

seating for only 50 people and seats are very comfortable and

of good quality. There are 100 seats which can accommodate 3

persons per seat and no one is allowed to put legs on the seat. In any one found putting

legs on the seat, will be fined. In the luggage compartment there are very less seats.

Because as name suggests it is a luggage

compartment, so they have given much empty space

so that one can carry luggage with him.

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Curtains: this feature is available only in AC trains/ compartments. The curtains are blue

in colour. Becausee as they are paying more for travel, they are only given this service.

Railing: railway also has a iron railings on each windows for the safety of the passengers

and in each compartment there is one window which is for emergency.and all has two

types of layer. One is of glass and another one is of iron. So in of any problems one can

shut the window by that iron layer and can save his life.

Floor: Railway have iron flooring in all the trains because it has to carry heavy load and

that can be lifted only by iron.

Steps: local trains do not have any steps. They have design a train in such a manner that

any one can climb in the train without any problem. And in out stations train there are

around 4 steps because out stations can have the low height of platforms, so for

convenience of passengers they have designed like this.

Lights: in local train there are two lights on every 12 seats which is very sufficient for

travelers to read news papers or stuff like that and in out stations train there are two lights

for one compartment.

Fans: there are around 24 fans in one compartment, which is not sufficient for

passengers. And in out station trains there are 3 fans for each compartment.

Ticket Checker: Ticket checker or the inspector uniform is light blue in colour. He can

check the ticket any time he wants and also passenger has the right to ask for his identity

or his batch.

Punching machine: There are punching machine on the starting of the platforms. One

can buy a coupon of 50 rs. and as and when he requires a ticket, he can punch that

coupon and travel with the same. And if TC ask him for ticket he can show that coupon.

40

Tickets: there are two types of ticket, one is printed and

another one is punched. In almost every station it is now

computerized. Minimum fare is 4 rs. if one person wants

to travel 1 station then also he has to pay 4 rs and he will

get a ticket of that station. And in this ticket he can travel

only once and he has to start his traveling within one hour. If he do not start his traveling

within one hour than his ticket is not valid.

Train passes: in this it comes in two types that is valid for one month and valid for three

months. Railway allows a very good concession to pass holders. Like if suppose a ticket

of rs 6 to one destination and return fare is also 6. then he has to pay rs 12 p/day. So it

comes upto 360 p/month, and if he buys a pass for one month than he has to pay only rs

96 p/month. Which is very low and person do not have to stand in line to get the ticket.

With this pass he can travel any no. of time between the two station which he has

selected, which is very good. Also college discounts are given to the students, which

minimizes sodt upto 55 – 60 %.

Stations: stations are of different sizes like if on a particular station the out station train

are stopping then station will be very long and if it is any local train station than it will be

small compared to out-station trains stations. Also on the station there are 3-4 stalls

which has almost all the items i.e. water, cold drinks, biscuits, chocolates, etc. also on the

stations there are sitting arrangements, fans, good lighting, managers office, etc.

41

RAILWAYS PROCESS

In the ticketing process consumer first have to go to the ticket window to buy a ticket.

This is the first and for most things that one consumer has to do. If a person does not have

a ticket or a valid ticket than he has to pay fine. To buy a ticket it takes around 5-10

minutes depending upon the day and time. In the morning to buy a ticket it takes less than

2 minutes but if one goes on afternoon time than surely it will take more than 15 minutes.

It also depends upon the stations, on the main stations like Andheri, Dadar it takes lot of

time. After purchasing a ticket he has to go to a respective platform from where he can

get into a train. There are different platforms to go for Churchgate and Borivali. Train

frequency in Mumbai in very fast. In every 2-3 minutes one train comes.

There are two types of train fast and slow. Slow stops on every station and fast stops on

main junctions or main station like Dadar, Bandra, etc. and also there are 9 coach trains

and 12 coach trains. Generally 12 coach trains are for fast and fast trains frequency are

less than slow train frequency also there are train for only ladies. So after purchasing he

has to go to respective platform and as per his destination he has to take slow train or fast

train. Slow train takes 3-4 minutes to reach to the next station and if one person has to go

to the churchgate then it takes 1.15 hours in slow train and around 50-55 minutes in fast

train.

42

For out station journey, initially passengers who want to go anywhere in India by train he

had to stand in long lines to take the ticket from morning 5.30 a.m. and at 10 or 10.30 but

now due to e-ticketing person can get ticket online from his home only. He does not have

to go to any station. He can book the ticket on net itself. Also one can book tickets online

for future date. And for payment there are different modes like cash cards or credit card

or through agent.

LAYOUT OF PLATFORMS

43

MARKET SEGMENTATION

44

Basis of segmentationSegments

Class wise / income wise1st class ac sleeper class,

Ac 2 tier class car,Ac 3 tier sleeper class,

Ac chair car,First class ordinary,

Sleeper class ordinary,Chair car ordinary,

General class ordinarySex wise Ladies special trains

Speed wise Mail, Express, Ordinary fast, Super fast, Luxury, Special.

Distance wiseLong distance,

Medium distance,Short distance.

An organization offering to the masses the transportation services is supposed to be well

aware of the specialties of a particular segment so that they are in a position to

understand, their preferences. It is quite natural that different categories of users avail

different modes of transport for different purpose. If the transport professionals know

about needs and requirements of a particular segment, the marketing resources can be

developed accordingly. The users coming from the rural areas, illiterate persons the

agriculturists and industrialists availing the services and like this youths and women, kids

and teens using the transportation services expect and behave in a different way. It is

against this background that we need to segment the market in the face of changing

socio-economic and business requirements.

The Indian Railways offer services to the different categories of users, such as farmers,

industrialists, general persons rich and poor or so. It is essential that they are familiar

with the hierarchy of needs and formulate marketing mix accordingly. The segmentation

simplifies their task substantially. The service mix, the product profile, the package can

be designed to cater to the changing needs and requirements.

An Organization serving rich and poor, rural and urban literate and illiterate, teens and

youths, kids and grey, men and women finds it difficult to study the changing needs and

45

requirements of the different segments. It is quite natural that all the users have their own

likes and dislikes. The agriculturists and the industrialists, the traders, the institutions use

the services of Indian Railways with diverse motives. If the market segmentation is right,

the task of developing the marketing resources and satisfying the users is made easier.

The Indian Railways are supposed to play the dual role of a public utility service and a

commercial undertaking. This imposes on the railways an obligation to meet the

transportation requirements of different segments in conformity with socio-economic

objectives. Besides, they are also supposed to generate adequate revenue for expansion

and development, discharging dividend and other liabilities. For maintaining commercial

viability of an undertaking, it is pertinent that market segmentation is done, studied and

perceived in a right fashion.

Markets consist of buyers and buyers are not homogeneous in terms of their demographic

profiles, wants, purchasing power, geographical location, buying attitudes, and buying

practices. Therefore it is unlikely that a broad marketing strategy applied across the entire

spectrum of a railway’s customers will succeed, because the needs of some (or probably

most) customers will not be met in this process.

By contrast, separate marketing strategies focussed on individual customer groups, each

consisting of customers with similar characteristics and needs, are more likely to succeed.

These customer groups are called market segments and the process of identifying and

separating these groups for the purposes of developing marketing plans and strategies and

of managing sales force activities is called market segmentation.

In the case of railways, however, a two-tier process is likely to be involved.

First, the railway’s customers will be segmented into broad market or business groups,

such as:

Commuters

Medium-long distance passengers

Freight customers

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Parcels and express freight customers

Next, these broad groups will be divided into market segments.

For Commuter traffic, it is unlikely that there will be any need for further subdivision of

the market, although in the case of a few of the region’s railways, premium or first class

commuter services are provided with the aim of capturing higher income business

travellers, who might otherwise use private automobiles.

For example, in local trains, there are 2nd class compartments and 1st class compartments.

1st class compartments have cushioned seats whereas 1st class does not have cushioned

seats. In Mumbai, Railways are planning to introduce local trains with AC compartments

so that commuters who otherwise prefer to travel by car will shift to Rail transport.

This category can further be divided in terms of SEX ie. male or female.

There are local trains only for ladies known as ‘ladies special’. These

kinds of trains are being run only in the local railways. No long distance

trains are being made ladies special. This segment is being made to

cater to women’s during the peak hours in order to make the travel

more comfortable.

For Medium-Long Distance Passenger traffic, this segment includes trains that

run over medium and long distances. According to the distance the

kind of facilities provided change. For example, trains which cover long

distances have sleeper class for more convenience whereas medium

distance trains according to the time of travel may or may not have

sleeper class.

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The railways system recognizes the following types of classes of travel and

accommodation -

CLASSES -

First class Air-conditioned (AC)

AC 2-tier sleeper

First class

AC 3 Tier

AC chair Car

Sleeper Class

Second Sitting

ACCOMMODATION TYPES -

Berths

Seats

Chair car

This segment can be further categories on the basis of demographic/income

characteristics may be appropriate. While segmenting on the basis of income, the

purchasing power of travelers has to be taken into consideration. Higher the price people

pay, lower is their zone of tolerance and better service they want. For example, if an

individual is travelling in 1st class compartment of local Mumbai train, he wants to get

better service as compared to that of 2nd class.

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The Deccan Odyssey from Mumbai to PUNE is one of the Indian Railways best loved

trains. Despite the advent of much faster and more modern trains in recent years, the

Queen continues to stand out in a class of her own. Indeed, the Deccan Odyssey has only

aptly been described as the Blue Eyed Babe of the Indian Railways. The services

provided by this train cannot be compared with any other train. The quality of food, its

interiors, arriving on time, catering service are all world class.

Other facilities which are available include Ayurvedic Massage Centre, Steam Bath,

Gymnasium, Beauty Parlour Lounge in each passenger car, Telephone in each saloon,

Plasma TV in Lounge Car, Money exchange facility / credit cards, Spa Car among others.

But this service does not come cheap.

Another train which offers very good service is PALACE OF WHEELS, a novel and

thrilling holiday concept of a railway cruise. It transports travellers into a bygone era of

princes, palaces & medieval fortresses and takes through the heart of colourful Rajasthan.

This fully air-conditioned train is a legend on wheels, dazzling in the aura of gleaming

brass with ceilings of painted silk and walls adorned with old paintings, all aglow with

the warmth of yesteryears. To enliven the journey, Palace on Wheels has been

refurbished and renovated with all modern comforts including central air-conditioning

and vestibules for inter-saloon access. It provides world-class services like best quality of

food, best personnel catering to the passengers, the kind of bedding, no delay in the

service delivery, customization in various services, etc. but also the cost of such

experience is high. As the consumers are not just fooled or being looted but are being

charged for the services provided.

Within the higher income, business or tourist segments thus identified in the Medium-

Long Distance Passenger market, there may be a further subdivision into service-based

segments (e.g. air-conditioned sitting car services and air-conditioned sleeping car

services).

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But railways cannot ignore other section of the society who cannot

afford luxury trains and therefore there are trains which are cheap but

they do not provide food inside the train. However, people who are

travelling can buy food.

This segment can further be classified into fast and slow trains. This segment is

being made to distinguish the time it takes to deliver the service. Fast

trains are able to make passengers reach their destination at the least

possible time, so as to save the time of passengers. Due to which the

cost of traveling in such kind of trains is quiet high. Business class

people prefer traveling in these trains.

Also there are trains that take more time to reach the destination and

charge less to the passengers. People who make casual visits or those

who are not in a hurry to reach the destination prefer this type of

trains. There are two superfast trains namely:

RAJDHANI EXPRESS is India's super fast, fully air conditioned, deluxe train give

travellers the unique opportunity of experiencing Indian Railways at its best. Afternoon

snacks and tea are offered after the trains begin their journey. Indian and continental

cuisine, soft music and the train's rhythmic movement provides a comfortable journey.

The trains link New Delhi (the capital or Rajdhani) to India's major cities.

SHATABDI EXPRESS is another super fast that links major cities and offer facilities for

quick and comfortable travel. The Shatabdi hospitality treats its passengers with meals

and snacks.

For Freight customers, the subdivision into market segments is likely to be based on a

combination of commodity type and handling mode (bulk, breakbulk and container).

Almost all of the region’s railways now identify container traffic as a segment in its own

right. Other segments are mainly commodity-based. For example, in addition to

containers, the Indian Railways identify 10 or 11 commodity based segments. Each

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freight segment generally has its own requirements in terms of loading/transport cycle,

wagon type, handling method and tariff (price). The commodity segments actually

identified will be of particular significance to the railway seeking to segment its markets

While there appears to be no obvious basis for the segmentation of parcels and express

freight traffic, it is likely that this market may be subdivided on the basis of time-

sensitivity (e.g. overnight delivery, second day delivery, etc.).

For example, courier mails which are sent since there is urgency of reach and therefore

they are sent by express trains rather than slow trains.

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SERVICE DELIVERY

Jousting for space in serpentine queues might well be a thing of the past with rail travel

set to become a more relaxed affair. That elusive reserved train ticket can now be

purchased from the local post office, petrol pumps and even ATMs.

As far as unreserved tickets go, about 6,000 automatic ticket vending machines will be

installed in all major cities. PRS-cum-UTS (unreserved ticketing system) counters will be

provided at post offices as well as defence organisations.

In another welcome measure, central railways will also start a pilot project for issuing

tickets through multi-purpose smart cards from Mumbai, followed by Chennai and

Kolkata. The smart cards can be both bought and recharged at various designated points

and they will be readable on touch by hand-held terminals provided to TTEs.

Train enquiry call centres will start operating in the four major railway hubs between

June and September this year, providing information on departures, arrivals and seat

availability. They will also provide value-added services like SMS, railway ticketing and

taxi booking in the near future.

Physically challenged people too might finally get an easier ride. More than 1,200 special

coaches with wider doors and greater aisle passage for handicapped passengers will also

be introduced in mail and express trains over the next two years. To make travel more

easy for vendors, custom-designed vendor coaches will be built for milk, vegetable and

fruit sellers. In addition to all that, a certain number of lower berths will be reserved for

senior citizens and women aged above 45.

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4 I’s of MARKETING

INTANGIBILITY

Intangible services are difficult to sell because they cannot be produced and displayed

ahead of time. They are therefore harder to communicate to prospective customers. It

means that services are high in credence qualities whereas goods are high in search

qualities. Services are experiential impossible to sample prior to purchase.

Marketers of services can reduce these risks by stressing tangible cues that will convey

reassurance and quality to the prospective customers. These tangible cues range from the

firm's physical facilities to the appearance and demeanor of its staff to the letterhead on

its stationery to its logo.

In the railway industry transportation is the core product. Since it is intangible in nature a

service company can distinguish itself from its competitors by providing several tangible

clues like:

Catering services

Logos

Colour and design.

Baggage place

Better booking or Ticketing arrangements

Bedding

Safety instruments

Clean and well built railway stations

Proper urinal facilities at the railway stations and trains

Cushioned seats inside the trains.

Proper display of reservation charts in case of trains

Drinking water facilities at railway stations Staff uniform & Well-trained

personnel for complaint handling or grievances.

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INSEPARABILITY

Services cannot be separated from the service providers. A product when produced can

be taken away from the producer. However a service is produced at or near the point of

purchase. It refers to the simultaneous production and consumption of services. The

production process of services has been called “servuction” process. In the railway

industry, it is very important for the company to consider the customers as a part of the

company in order to serve them better. The inseparability of services leads to

The customer being present when the service is produced.

The customer playing a role in the servuction and the delivery process.

Customers interact with one another during the servuction process and may be

affected (positively or negatively) by this interaction.

Service quality depends highly on what happens in real time, i.e. during the

service encounter.

Since customers have a vital role in the servuction and delivery process, the

service provider needs great skills to train them how to play their role.

The service provider must prove excellence each time the service is produced.

The service provider needs skills in order to tackle disruptions in the servuction

process, caused by problem customers.

All the above problems are faced by the service marketer in the railway industry. So the

service marketer has to think of ways in which he can satisfy his consumers in an

efficient manner.

In the railway industry, the customer has to be physically present in the service factory.

Hence, he is coming in direct contact with the service provider as well as other customers

of the rail.

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INCONSISTENCY

Different front-line personnel have different abilities. Even the same service provider has

good days and bad days or may be less focused at different times of day. Services are

performances, often involving the cooperation and skill of several individuals, and are

therefore unlikely to be same every time. This potential variability of service quality

raises the risk faced by the consumer. The service provider must find ways to reduce the

perceived risk due to variability. One method is to design services to be as uniform as

possible - by training personnel to follow closely defined procedures, or by automating as

many aspects of the services as possible.

E.g.: Railways now have online booking resulting in a standardized procedure & fewer

mistakes due to human errors. A second way to deal with perceived risk from variability

is to provide satisfaction guarantees or other assurances that the customer will not be

stuck with a bad result. Another way of reducing inconsistency in railways is the

standardization of all the halts of the train or even the standardization of the procedure of

supplying with food and other services in the train.

INVENTORY (perishability): Inventory is defined as an idle resource of any kind that

has potential economic value and considered as locked up capital. A practical definition

from the materials management angle would be “item of store or materials kept in stock

to meet future demands of production, repairs, maintenance, construction etc”.

Materials play an important role in Railways both in production of new assets and in the

operation and maintenance of the existing assets. Therefore their continuous availability

is a prime requirement for uninterrupted working. In improving profitability, reduction of

input costs is a major parameter and since expenditure on men and machine is more or

less fixed, the only field where economy may be possible is management of materials.

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Expenditure on purchase of materials on Indian Railways needed for operation,

maintenance and production, etc. is of magnitude of 11,000 crores, which include 37%

stores for operation, repairs and maintenance, 2% stores for construction, 38% stores for

manufacture of rolling stock. Indian Railways has 215 stores depots spread all over

stocking 2.8 lakhs item, are the main hubs of inventory holding. Service businesses

cannot normally stockpile their output, because the time bound nature of service delivery

makes it impossible to inventory the finished goods.

Inventory on Railways can be classified according to its usage and its point of entry into

operation i.e. raw materials, work in process, finished goods, tools, consumables, spares

etc. which are briefly summarized as under :

- Raw materials are major input, which gets converted into final output. Any

breakdown in supply will result in production stoppage in the

workshop/production units. Usually their annual usage value is also quite high.

- Consumables are materials, which assist the production or maintenance but do

not figure significantly in the final output i.e. cotton waste, brooms, welding

electrodes, paints, stationery, bedding, etc.

- Work in progress are materials in intermediate stages of production and remain

in inventory due to protective buffer, economic lot production awaiting.

Conversely, when demand for service exceeds supply, the excess business may be lost. If

someone cannot get a seat in one train another railway gets the business or the trip is

cancelled or postponed. Railways face the problem of inventory mainly due to irregular

demand patterns.

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Quality Dimensions: RATER Analysis

Customers don’t assess the quality of service on one dimension only, they use multiple

parameters to judge the quality of the service that they are being offered. These

characteristics which people consider vary from person to person, industry to industry.

Even depend upon the product on offer.

Because of the intangibility and multifaceted nature of many services, it may be harder to

evaluate the quality of a service than a good. Because the customers are often involved in

the service production a distinction needs to be drawn between the process of service

delivery and the actual output of the service. The most extensive research into service

quality is strongly user oriented.

Services are broadly classified into 10 dimensions namely:

Tangibility

Reliability

Responsiveness

Competence

Courtesy

Credibility

Security

Access

Communication

Understanding the customer

Since most of these dimensions are overlapping they were pooled down to five

dimensions as given below:

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Reliability

Assurance

Tangibles

Empathy

Responsiveness

When we look at these dimensions with respect to the railway industry we find that

the following service qualities are expected by the customer.

Reliability – Trains to promised destinations depart and Arrive on schedule

Assurance – trusted name, good safety record, Competent employees

Tangibles – train, ticketing counters, uniforms

Empathy– understanding of special individual needs, anticipates customer needs

Responsiveness - prompt and speedy system for ticketing, in- train service.

RELIABILITY- Much of the safety and comfort of a rail journey depends on the track

and its maintenance. The present track structure on the main routes of the Indian

Railways compares with the best anywhere in the world regarding its traffic carrying

capacities. This has been possible because of the use of state-of-the-art machines. The

railway signalling system is to be continuously modernized to cope with the rising traffic

density and to meet better safety standards.

Provides safe and dependable train services;

Notified standards are set for various services wherever possible;

Ensure adequate passenger amenities in trains and at railway stations;

Provides courteous and efficient counter services; and

Responsible and effective grievance redressal machinery is set up, at various

levels for time bound resolution of complaints and grievances as far as possible.

It is also one of the cheapest modes of transport and it’s quite fast and also has a

good passengers caring capacity and hence it’s reliable.

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ASSURANCE: Assurance relates to knowledge and accuracy of employees and their

ability to convey trust and confidence. This dimension is of great significance for services

where a customer perceives high risk and is not sure of the outcomes. The employees

should have a positive morale & should be motivated if they have to promote the firm &

create a sense of assurance in the flyer’s mind.

Rajdhani is generally considered the most customer friendly of the mail trains. The staff

there is more cordial to old people or little kids who might be travelling. Though

Railways have few staff yet they assure that everyone is comfortably seated.

Besides this, after the multiple bomb blasts, there was a lot of scepticism in the travellers

& to instill confidence in the consumer’s mind, the government paid greater emphasis on

security in the railway policy. The RPF was increased. There were dog squads added.

They have female inspectors in the ladies compartment in the suburban trains. All these

measures were taken to build up the confidence and assure the commuters a safe travel.

The railway also assures the passengers of time tables containing details of various trains

run by the Railway Administration and other relevant information for passengers are

made available at most of the railway stations. Indian Railways is already extending the

use of Internet to assist passenger’s book e-tickets over the ATM. Railways also make all

endeavors to provide information to passengers on telephone at important stations

regarding arrival/departure/reservation status etc.

The position of running of trains is updated regularly and the latest available position is

announced on the Public Address System at the important stations and it is also made

available to passengers on telephone/personal enquiries.

Computerized Interactive Voice Response System (IVRS) capable of providing

information to the public automatically over the phone is provided to facilitate easy

access to information at stations handling large volume of passengers.

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Handy information pamphlets in local languages containing details of different types of

concessions to which passengers are eligible and other relevant passenger information is

made available at Book Stalls and Railway Counters on payment of nominal charges. All

these measures enhance the reliability of the passengers on the railways

TANGIBLES – Tangible features would be those physical features, which can be seen

by the customer. These would be the physical proofs, which would help the customer to

judge the quality of service. The customers evaluate the quality of these services on the

basis of the tangibles provided by the service providers. The marketers of services

emphasize on tangiblising the intangibles.

The tangibles would also include the infrastructural facilities present at the stations.

Theses infrastructural facilities would include trolleys, water coolers, government

authorized food stalls, book stalls, restrooms, waiting rooms, cloak rooms. The on-board

tangibles would include the cushioned seats, the bedding provided, the pantry attached to

the cars, the bottle holders, foldable tables, curtains in certain compartment for their

privacy. Most important is stressing on the need for cleanliness in trains. The uniform of

the staff in the train also leave an impact on the passengers.

During this year, a special campaign will be launched to ensure cleanliness and hygiene

at station premises, in passenger trains, railway lines and waiting rooms.

EMPATHY: Empathy basically is when the employees of the organisation make the

customer feel at home, at ease, making him feel wanted. The easiest way for trains to

maintain and grow its client base is to be empathetic towards their customers, to

understand their specific needs and to cater to them. The railway ministry is planning to

serve Food in trains which will be brought at par with the airlines with variable menus

and diet food for sick passengers.

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The railway industry offers concessions for women, senior citizens and the physically

challenged. Senior citizens and ladies face considerable inconvenience when they are

allotted upper or middle berths.  Therefore, quota of adequate lower berths will be

provided in AC and Sleeper classes for senior citizens and women above the age of 45,

traveling alone.

Eight more ‘garib raths’ (trains for the poor), extended the run of 23 trains and increased

the frequencies of 14 others.

Concession for students: There is 50 per cent travel concessions provided in the budget

for students appearing in UPSC main examinations. This was done in an act to help the

unemployed students across the country who have to travel across cities to take the

UPSC exams.

 

Special coaches for handicapped passengers: The railways have manufactured SLRD

and SRD coaches for the convenience of handicapped passengers.  These specially

designed coaches are equipped with wider doors, wider cushioned seats, more aisle

passage and specially designed toilets for passengers on wheel-chair.

 

Introduction of Vendors’ Coaches: The railway ministry is empathetic towards all the

classes of society. Vendor coaches will be provided for Milk and vegetable vendors and

other retail sellers to transport milk, fruits and vegetables by trains.  Due to absence of

earmarked space in the passenger trains, these vendors carry their milk cans and

baskets   hanging from the windows.

Concession for tourist : Thousands of people come to Mumbai from outside for

tourism and various other purposes  For the benefit of such people, the railways have

decided to issue tourist tickets  valid for, one, three and five days on the Mumbai

Suburban Service.  Such ticket holders will be able to travel any number of times, from

any station to any station on the suburban sections of Central and Western Railways of

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Mumbai. As a result of this, passengers will not have to stand in a queue again and

again to buy tickets.

The railway ministry is trying to make each customer feel like he is a unique asset to the

company & like their single most important client.

The ministry is not only passionate about their external customers but they also show

extreme compassion for their internal customers i.e. staff. Immediate relief in times of

crisis arising out of natural calamities is provided to the staff. Training for developing

occupational skills of physically challenged children especially girls, of Railway

employees are given. Recruitment of candidates from backward classes are done to give

them employment.

RESPONSIVENESS:

Responsiveness is willingness to help the customers and provide prompt service. The

degree of responsiveness shows the level of commitment that the people of the company

have towards their work. It is very necessary for the company to concentrate on prompt &

the right kind of responsiveness to the needs of the customer.

As in the case of railways where in an emergency when the passenger pulls the chain the

train halts and an attendant and ticket checker attend the passenger.

Further their responsiveness can be seen when a passenger can get his ticket upgraded i.e.

if a passenger is holding an AC 3tier ticket and wants to upgrade it to AC 2tier he can do

so if there is vacancy by paying the difference fair.

The luggage of the passengers can also be moved into the luggage van as per the space

available. Incase a family is traveling with infants their needs of hot milk etc. can be met

by the railway staff if there is a pantry car attached to the train.

First aid boxes: First Aid Boxes are available with the Guards of all passenger carrying

trains and at railway stations. First aid assistance is provided to passengers getting injured

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on the train free of charge. If a person falls sick during journey, a doctor can be called at

the next stopping station where a Railway Doctor is headquartered on payment of

specified charges.

Assistance in accidents: Whenever a serious accident occurs, action is taken by Railway

Administration as promptly as possible to:-

Save life and alleviate suffering;

Protect property, including mail;

Ascertain the cause of the accident;

Restore through communication;

Provide succor to passengers at the site of the accident;

Transship stranded passengers by providing road vehicles and adequate number of

porters;

Rushing of medical van or accident relief train; and

Arrange to inform the next kin of the deceased or seriously injured.

Quick response to customers in case of any problem faced by the passenger shows the

sensitivity of the railways towards their customers.

The Station Masters of certain important Station/Reservation Offices have been granted

special discretionary powers to grant refund on unused tickets, issued from their stations,

on which refund is not normally admissible at the station on account of expiry of the time

limits prescribed in the rules. This also shows the responsiveness of the railway

authorities.

All the five dimensions are basically into serving the best to the customers, giving them

quality services and if things were followed as they are demanded, (i.e., according to the

customers demand) then there would be no problems in facing any type of people. The

successful service organizations set up speeds for service standards.

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SERVICE ENCOUNTER

The interaction between the customer and service provider in the Railways means that the

employee often represents the company to the railway travelers (customers). The

customer comes in direct contact with the employees of the Railways.

The Railways organizational structure and culture dictates the extent to which

responsibility for staff recruitment, training and motivation is shared between marketing

operations and human resources. For service marketers in this industry, the core of

service element is the interaction between those providing services and the customer is

known as service encounter.

Critical incidents

Critical incidents are specific encounters between customers and service employees that

are especially satisfying or dissatisfying for one or both parties. In Railways critical

incidents are very important as they help Railways evaluate and measure satisfaction

level of the customers. The critical incident technique is a methodology for collecting and

categorizing such incidents in service encounters.

Service gap

A service firm may win by delivering consistently higher quality service than competitors

and exceeding customer’s expectations. These expectations are formed by their past

experiences, word of mouth and advertisement. After receiving the service customers

compare the perceived service with the expected service. If the perceived service falls

below the expected service customers lose interest in the provider. If the perceived

service meets or exceeds the expectations they are apt to use the provider again. The

model shown identifies 5 gaps that cause unsuccessful delivery in the Railways.

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a. Gap between consumer expectation and management perception

Management does not always perceive correctly what customers want. In Railways, it

might perceive its target customers to be ambience driven and not price driven but in

reality it might turn out to be the other way.

For example, if an individual is travelling by ‘Palace on Wheels” which is a premium

train, he would want good ambience, good food and service and will not mind paying

little premium for these services. On the other hand, an individual who travels in local

train might not like to pay for all these additional services.

b. Gap between management perception and service quality specification

Management might correctly perceive what its customers want but not set specified

performance standards. Railways who thoroughly understands what its customers want

but due to external factors like lack of resources and the fact that it is a government run

organization due to which there is a lot of political interference restricting the company

from performing at its best.

c. Gap between service-quality specifications and service delivery

The personnel might be poorly trained or incapable or unwilling to meet the standards. Or

they may be held to conflicting standards such as taking time to listen to customers and

serving them fast.

For example, if the Ticket collector is not friendly with the passengers and does not reply

to their problems it will result in this service gap.

Gap between service delivery and external communications

Consumer expectations are affected by statements made by company representatives and

ads. This gap occurs when the consumer misperceives the service quality. This is a

combination of one or more of the previous gaps and provides a clear indication of the

degree of which service quality exists in the service organizations.

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The company sometimes overpromises its customers through advertisements,

uncontrolled communication to customers, lack of internal communication in letting the

production people know what was promised.

This gap does not arise in case of railways as it does not undergo promotion and hence

this gap does not come into picture.

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SERVICE RECOVERY

When the company fails to stand for its promises made to the customer on the basis they

build expectation, it’s to be said that there is service failure. When the service failure

occurs, there can be again severe ramification. Customer is considered to be the bread

and butter, hence retaining them is the biggest challenge, and however service failure acts

as an obstacle to it. In such failures,

1) The customer wants what they were promised.

2) Customer wants personal attention

3) Customer wants a decent apology

4) Customers want that they should not be made to feel that they are the cause of

the problem. (Though in many cases they are responsible for nuisance)

There are again five steps involved in order to deal with service failure. They are

mentioned as below

1st step: acknowledgement and apology for the fact.

2nd step: listening to the customers.

3rd step: avoid defending the company and offer a rational explanation.

4th step: offer some extra benefits

5th step: have a proper follow up and make sure no mistakes this time,

so that he can easily forget about the service failure and is retained.

A customer expects 3 shorts of fairness in case of service recovery. They are mentioned

as below.

1. Interaction fairness: - when there is service failure, first the company is supposed to

acknowledge the customer. Due to this the customer might turn erate, but he still expects

fairness and courtesy in the language and tone used by the addresser

2. Procedure fairness: - to know in detail about the incidence of service failure or to

avail the compensation. There should be simplicity in procedure, which is involved.

Service failure and complexity in procedure both together might result in a disaster as far

as customer is concern.

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3. Outcome fairness: - now when the company realizes that there is service failure they

should end up compensating, arranging for some alternative mode of transporting or

complies with the customer condition. The outcome should be taken by considering the

customer, his needs and the company’s policy.

The replacement of steam cranes by high capacity diesel cranes and of non-standard

stock by ICF all coil coaches along with induction of hydraulic re-railing equipment have

imparted considerable capability to the Accident Relief Train.

There has been general upgradation of tools and tackles and the amenities to the staff,

which has raised their productivity. Yet, the response to the accidents and emergencies

continues to fall short of the expectations.

The induction of modern rolling stock has increased the operating speed of the Accident

Relief Trains and brought down the transit time between the base depot to the accident

site from the earlier 8-10 hours to 4-5 hours now.

The fire brigade personnel are well trained in evacuating passengers trapped inside the

coaches.

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SERVICE TRIANGLE

Service marketers face marketing challenges which revolve around issues such as:

Understanding customers’ needs and expectations of services,

Making services tangible to customers and

Keeping and dealing with promises made to the customers.

The services marketing triangle helps service marketers to address these challenges. The

three points of the service triangle represent the organization, the customers, and the

employees. Between each of the three points of the triangle different marketing processes

such as external marketing, interactive marketing and internal marketing must be

successfully carried out for service processes to succeed and to build and maintain

relationships with the internal and external customers.

COMPANY

Promises made by company in advertisements and through promotions are used by

customers to form service expectations. These can also positively or negatively influence

the customers’ initial expectations of the desired level of service compared to the

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Company

Provider Customer

adequate level of service. Customers use price as an indication of the quality of the

offering, while the promise of availability and accessibility of an offering has an impact

on the customers’ service expectations.

However, for service organizations, factors such as service employees, organization

image and visible structures, and the actual service process itself, form the basis for

customers’ expectations of the offering and the delivery thereof. Customers’ expectations

and experiences fuse, therefore much of their final belief is drawn from the environment

in which they receive the service and the personalities and behaviour of the people they

encounter during service processes.

The organization’s projected values and integrity must be the priorities that govern the

promises made to the customers during the external marketing process. Customers expect

consistent and realistic promises that will at all times be honoured by the organization.

Creating unrealistic customer expectations create dissatisfied customers. Misleading

customers or over-promising to them can negatively influence the relationship between

the organization and the customer.

In case of Railways, it promises its passengers on time and safe journey. Also it provides

low cost of transportation facility as compared to other modes of transportation like

airways. However, now days’ airlines have come up with low cost carriers which are

posing threat to Indian Railways and therefore it is very important for Railways to

maintain its position by providing good services and affordable journey.

PROVIDER

The marketing focus of service organizations has shifted from the offering to the

customers, to the interaction that takes place between the service employees and the

customers. Through their interactions with employees, customers form a perception of

the integrity of an organization’s service promises. They furthermore use the interaction

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to assess the value of the offering, and to make the decision to purchase or repeat the

purchase of an offering.

From a customer’s point of view, this is the most important stage of the service delivery

process as it is during this process that they receive the value they actually desire.

Interactive marketing performs a vital function in the establishment of a relationship

between the organization and the customer. The customer’s perception of the service is

derived from the delivery of the service, and cannot be separated from the contact they

experience with service employees. Therefore, it can be argued that relationships are an

inevitable outcome of service delivery.

However, it is important for organizations to acknowledge the fact that relationships do

not necessarily exist between the organization and the customer, but to a greater extent

between the service employees and customers. The success of these relationships depends

profoundly on the attitude service employees have towards their employment and their

loyalty towards the organization. It is the responsibility of the organization to recruit

service-orientated employees very carefully, involve them in organization activities, and

motivate them to follow the examples set by the leaders of the organization.

During interaction, employees and customers meet face to face and the actions of service

employees will be a major factor in influencing the customers’ expectations of the

service. Customers’ evaluation of services is based on their interaction with service

employees, therefore it is of the utmost importance that service organizations

continuously strive to improve the quality of interactions.

In case of railways, the passengers come in contact with many personnel of railways.

First contact of passengers is made with the ticket counter person. The person issuing

tickets should be amiable and friendly and should help passengers if any problem arises.

The next encounter is with the person who carries luggage. These persons carry the

luggage of the passengers to the train. Next is with the ticket collector. This person

should be friendly and ready to help passengers in case of any kind of emergency. Also,

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he can provide passengers with information like which station will come next and for

how long the train will stop there etc.

CUSTOMERS

Customers in case of Railways are those people who feel the need of travelling from one

place to another. These could long distance passengers or short distance passengers. If

people are travelling long distance, they should be provided with certain facilities like

meals, sleeping berth etc for their convenience. However, for short distance travellers

provision of meals is not necessary.

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GUARANTEE & WARRANTY

A guaranty is an undertaking or promise that is the answer to or payment for a debt or

default. A guaranty is also something given or held as security until a debt is paid or the

performance of a duty is fulfilled In case of failure to provide a berth or seat in the class

of travel for which a confirmed reservation is held by a passenger, the Railway

Administration either offer accommodation in an alternate lower class of travel and

refund the difference in fare between the two classes or refund the entire fare and

reservation charges if the passenger so desire.

In case of failure of air-conditioning equipment on run affected passenger is refunded the

difference in Fare between AC and Non-AC class of travel for the portion traveled

without air-conditioning. Such refund is granted on Guard/TTe’s certificate.

As far as possible, refunds are made across the counter, provided the ticket is surrendered

within the specified time limit. Such refund on tickets can be obtained, either at the

originating stations or the ticket issuing station and in the case of computerized tickets at

the computerized counter of any station provided it is linked with the ticket issuing

station and the ticket is presented within the prescribed time limit.

No claim for refund is entertained by Indian Railways in case of lost or misplaced tickets.

Refund of fare will be granted in respect of a torn or mutilated ticket if its authenticity is

verifiable on the basis of the particulars visible on the face of the ticket. However, if such

a ticket is reserved/RAC, the Railway may permit the travel on the same reservation on

payment of the following charges:-

25% of total fare, in the case of tickets for journey upto 500 kms.

10% of total fare, in the case of tickets for journey more than 500 kms., subject to the

minimum payment of 25% of total charges for reserved/Reservation Against Cancellation

(RC) ticket of 500 kms. and

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25% of total fare, irrespective of distance, for tickets of trains which have separate all

inclusive fare structure like Rajdhani Express, Shatabdi Express, etc.

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FLOWER OF SERVICE

1. INFORMATION

A marketer needs to provide adequate information to his employees and his customers.

This information is general information provided through various communication

channels. People who are travelling by train can get information in the following ways:

Travellers can access information regarding the schedule of trains, fares,

concessions, their PNR status etc which is available on their site. They can get all

this information by logging on the site - www.indianrail.gov.in.

On railways stations books are available which give information regarding the

routes and the timing of various local trains.

People can call and get information on the railway helpline. By calling on this

number, they can access their PNR status, know whether the train is on time or is

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8 PETALS

8 PETALS

Information

Consultancy

Order-Taking

Hospitality

Safety

Exceptions

Billing

Payment

delayed and various other information. People will soon be able to make train

enquiries at local call rates from any part of the country by dialing a common

telephone number. The facility will be available from June to September in all

the four regions of the country. By dialing 139 at enquiry call centres to be

established soon, passengers will be able to obtain information about arrival and

departure of trains, seat availability and so on at local call rates from any part of

the country. Reliance telecom has also introduced a service by way of which they

can log on to R-world from their cell phones and get the necessary information.

There are boards on railway stations which also provide information about the

schedule of trains.

Information can also be availed by sending SMS to Railway SMS Enquiry

Numbers : 7070,676747,6677,8888,7886.

Announcements are also made on the platforms which tell which local train is

arriving shortly, also whether it is a fast or a slow train and its final destination.

Announcements are also made to inform Travellers with regard to change of

route, if any of the local train so that it is convenient for people to move to that

platform and catch their local train and frees them for the confusion.

There are TV screens also on stations showing the timing of trains, their departure

and arrival.

customer-friendly measures, notably the sale of e-tickets at gas stations and from

automatic teller machines.

Under the existing PRS system, reservation charts are taken out a few hours

before the departure of trains. Often, due to unforeseen circumstances, several

passengers with reservations do not travel. As a result many berths remain vacant.

Since this information is not fed into the PRS system, passengers on board the

trains or waitlisted passengers at ensuing stations are not aware of the vacancy

position. Therefore railways have proposed to provide hand held computer

terminals to  TTEs, in reserved coaches. The TTE will feed in the current vacancy

position, coach wise and berth wise in to these hand held terminals. These

terminals will be directly linked to the PRS system to transmit the berth

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reservation position from   running trains to the PRS system.   Based on this

information the PRS will allot vacant berths to waitlisted passengers at ensuing

stations.

2. CONSULTANCY

This is additional customized information provided to the potential customers by the

service provider. Consultancy is a kind of suggestions provided to the people when he is

interested in gaining more information about a product or a service of a particular

industry. This method has become an attractive tool for the industries as it helps in

turning people into your customers. Therefore, many industries started adopting this

strategy of gaining more and more people.

In case of Railways, there is no special consultancy provided. Since railway is a public

undertaking and also the rates are very nominal, therefore there is not much need for

consultancy. Whatever information travelers need to know they can ask at the ticket

counter. The only form of consultancy that exists in railways is through travel agents with

whom travelers consult with respect to which train will suit their budget, timing and other

factors.

3. ORDER TAKING

Order taking refers to the procedure of order given by the customer to the industry for the

required services. It should be done without mistakes. Following are the ways in which

travellers can place their order of booking their ticket:

People who wish to travel by train can book their ticket on the website if Indian

Railways. They can then print the ticket and carry with them.

Tickets can also be booked through travel agents who book tickets on behalf of

their customers.

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Another way people can book tickets is by going to the railway station and

booking ticket there.

Tickets can now be booked by way of sending SMS to their respective telephone

operators or by logging on to R-World for Reliance customers.

The number of computerised unreserved ticketing system (UTS) terminals will be raised

to 8000 in the next two years from the current 2200 terminals. Presenting the Rail Budget

for 2007-08, it is also proposed to install an additional 6000 automatic ticket vending

machines in major cities that will be connected with the UTS terminals over the next two

years.

Tickets would be made available at a press of a button by using smart cards or currency

coins. The coupon ticketing system introduced for suburban passengers in Mumbai is

also proposed to be extended to Chennai and Kolkata.

Central Railways would also undertake a pilot project of issuing tickets through multi-

purpose smart cards. Under this scheme, customers will have the facility to obtain

monthly season ticket (MST) as well as daily ticket on the same smart card this would

alleviate to a large extent the problem of long queues at ticket counters.

The call centres will have international facilities like sms alert. In future these centres

will provide several services like railway ticketing, taxi booking and hotel booking.

4. HOSPITALITY

Hospitality is a very pretty petal, reflecting pleasure at meeting new customers and

greeting old ones when they return. Hospitality finds its full expression in face-to-face

encounters.

It previews the performance of the services provided or the behavior in which the service

provider reacts to their customers. It has always been a kind of ritual in India for offering

a warm welcome to their guest. That is, it is basically a service performance. It includes

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various aspects such as the surrounding, infrastructure, appearance, speaking tone etc. It

can either click the customer or flip the customer.

There are five centralized Training Institutes (CTIs) on the Indian Railways. While four

other CTIs impart training mainly to the officers of one specified discipline Railway Staff

College runs training courses for officers of all disciplines and all grades right from

Probationers to prospective General Managers.

Railway Staff College conducts two types of courses for development of managerial skills

of Railway officers. They are known as the Management Development Program (MDP)

and the Advanced Management Program (AMP). These programs are meant for officers,

at different levels of seniority, and cover most of the disciplines. These programs train all

the people for their work such as issuing tickets, reservation counterparts, handling

finance etc. During the journey, people are offered by various facilities like bedding,

food, drinks, tea, coffee, soups etc.

They are also planning to introduce an extensive programme of training to develop

market and customer friendly attitude amongst frontline staff, who are in constant

contact with the customers at selected stations.  Upon the success of this programme, it

would be extended throughout the country.

Railway employees and officers require training at periodical intervals in view of rapid

changes in the underlying economic and competitive environment. Therefore they have

decided that Railway officials will be sent on training to reputed national institutions

once every five years and for foreign training every ten years.  Officers would have to

undergo a mandatory training before promotion to JA, SA and HA grade. It has been

decided to set up a Chair at IIM Ahmadabad to encourage research in Railway

infrastructure and management.

5. SAFETY

It is the process and procedures used by marketers to safe guard and to maintain secrecy.

Safety basically, refers to how much the customer feels safe when he is using the services

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provided to him. It can also be considered as a kind of protection given to the customers,

their belongings, and any other things related to them.

For Railways, it is very necessary for them to keep its promise of providing safe journey

as they are responsible for the lives of many people. Therefore, safety is the prime

concern of India Railways and adoption of new measures to improve safety is a

continuous process. The measures being taken by Indian Railways to minimize incidence

of accidents include adoption of suitable modern technology for interlocking and

signaling system, upgradation standards of track and rolling stock, modernization of

maintenance practices, replacement of over aged assets, provision of ACD and

upgradation of training aid like simulators. In addition, equipments like CCTV and smart

video cameras have been installed at sensitive stations. Intensive training is being also

imparted to Railway Protection Force, in order to increase their professional expertise

and efficiency.

In the case of tickets which are lost or stolen in railways, no refund is allowed against

lost/misplaced tickets. Loss of tickets should be reported to railways immediately to

prevent fraudulent refunds on lost tickets. Refund on torn/mutilated ticket is admissible

subject to the deduction of cancellation charges as per rules, provided that the

authenticity of such a ticket is verified at the station on the basis of particulars visible on

the face of ticket. But duplicate tickets are issued only in case of   lost/torn/mutilated/

confirmed/RAC tickets.

In case of lost property in trains, a police complaint is lodged which are generally located

nearby railway stations. Then these complaints are implemented. However, in the trains’

space are provided to keep their luggage. There are also special cupboards given for the

luggage in some trains so as to ensure that luggage of travelers is not lost.

To improve safety and security in the wake of the recent blasts railways would install

doorframes and hand-held metal detectors, CCTVs and smart video cameras to detect

explosives at many sensitive divisions. Number of trained dogs will be increased in the

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existing squads, Eight thousand vacancies will be filled in the RPF on all India basis.

Testing of anti-collision device is also planned to be launched in coming years.

General managers have been empowered to sanction subways costing upto Rs 50 lakh on

unmanned level crossings for reducing accidents. Production of improved crashworthy

coaches will be increased. Railway safety is our prime concern.  I am glad to inform the

House that funds for replacement of overaged Railway assets are now provided as soon

as the assets become due for replacement.  Sir, we have allocated Rs.5,500 crore towards

Depreciation Reserve Fund for the year 2007-08  as compared to Rs.2,100 crore

provided  in 2001-02.  This has had a direct impact on Railways’ safety record. Although

the gross traffic volume has increased from 724 Million train kilometres in 2001-02 to

825 Million train kilometres in 2005-06, the number of accidents is expected to be less

than 200 in 2006-07 against 473 in the year 2001.

 

Of the Rs.17,000 crore Special Railway Safety Fund, most of the works of renewal  of

overaged tracks, bridges, track circuiting and  rolling stock will be completed by March

2007 and all remaining works will be completed by March 2008.  Sir, as per our

Corporate Safety Plan, the testing of Anti-Collision Device on North East Frontier

Railway is in its last phase and is likely to be completed by March 2007.   Besides this,

the General Managers of the Zonal Railways have been delegated the powers to approve

construction of subways costing upto Rs, 50 lacs, to reduce accidents at  unmanned level

crossings. The production of better crash worthy coaches has commenced.  In future, the

number of such coaches will be further increased to ensure safety of passengers.

 

RAILWAY SECURITY 

In view of the serious bomb blasts which occurred last week on 18th February in train

number 4001 Delhi-Attari Link Express near Panipat and in July 2006 in Mumbai

Suburban Services, Railways have taken several steps to strengthen and modernize the

security arrangements. In order to provide necessary equipments and other resources for

Railways security works, adequate funds are being made available from Passenger

Amenity and Machinery & Plant Plan heads. The allocations for these works will be

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enhanced substantially and these funds will not be a constraint for these works. Besides

increasing the number of trained dogs in the existing dog squads, in many sensitive

divisions of the country explosive detection devices, door frames and hand held metal

detectors are being installed to provide better security for trains and passengers.   In

addition, equipments like CCTV and smart video cameras have been installed at

sensitive stations.  In consultation with security experts, an integrated extensive security

and surveillance system will be developed for Mumbai Suburban Services which will be

equipped with high quality security equipments.  Railway Protection  Force is escorting

1,450 trains everyday. 8,000 vacant posts in Railway Protection Special Force will be

filled up shortly on an all India basis. Intensive training is being imparted to Railway

Protection Force , in order to increase their professional expertise and efficiency 

Recently, Jagjivan Ram Railway Protection Force Academy, Lucknow has been given

the status of a Centralized Training Institute.

They would appoint a committee and look into the recommendations provided by them to

better the security arrangements in the trains and stations.

6. EXCEPTION

Railways in the past railways have provided exceptional services. Service providers need

to provide such services to keep their customers happy. Earlier, trains which provided

meal did not have Jain food but now on request of passengers they provide Jain food to

passengers. This is an example of exceptional service provided by Indian Railways.

Another example of exceptional service provided by railways could be that if a lady or

elderly passengers request railways to provide them with lower births if they don’t have

one, then they make arrangements to make them feel comfortable.

7. BILLING

In railways, when a passenger books a ticket, he does not get any bill for the ticket. He

directly receives the ticket on which following details are mentioned:

Train number

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Seat number

Coach number

PNR number

Ticket number

Age of the passenger

Birth number

Train name

Passengers name

Gender

Fare

Kilometers travelled

Destination

PAYMENT

Payment refers to the mode of payment. This mode should be convenient and therefore

railways have introduced many modes by which travelers can make payment for their

tickets.

The simplest mode of making payment is by cash. Travelers can make payment at

the cash counter at the Railway station or while booking through travel agent.

Travelers can also pay their agents by using their credit cards.

The scheme of booking e-ticket through internet from home has become very

popular. To further encourage e-ticket usage, there are plans to reduce the per e-

ticket charge for

Jousting for space in serpentine queues might well be a thing of the past with rail

travel set to become a more relaxed affair. That elusive reserved train ticket can

now be purchased from the local post office, petrol pumps and even ATMs.

Payment can also be made by using credit cards and for this there has been a tie

up with ICICI Bank and Citibank and American Express. One problem is that

many Indians dislike the concept of credit cards since they don’t like buying

goods on credit. Railway has realized this, and for customers who do not want to

83

use these cards, an additional payment mode of direct debit from their accounts

through online banking is now available. Now they provide direct debit through

17 banks, three payment gateways and one cash card payment option.

In another welcome measure, central railways will also start a pilot project for

issuing tickets through multi-purpose smart cards from Mumbai, followed by

Chennai and Kolkata. The smart cards can be both bought and recharged at

various designated points and they will be readable on touch by hand-held

terminals provided to TTEs.

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THE WAY AHEAD …..

The success of Indian Railways' recent initiatives has bred new confidence and

enthusiasm to implement larger schemes and proposals on a war footing. The current

situation is one of stock-taking and planning for the future. Some of the key areas that

require attention have been identified as a wish list for the Railways. They include:

Planning and implementation of freight and high-speed corridors in South India to

complement the planned northern rail freight corridors. This would then be a

perfect foil to the highway Golden Quadrilateral for inter-modal integration.

Providing investment (fiscal/ commercial) incentives to attract Foreign Direct

Investment (FDI) in rail infrastructure. This would also result in access to

advanced technology in this area from foreign participants.

Private sector investment to create captive and common rail links to main rail

corridors to reduce the financial and operational burden on the Railways.

Development of infrastructure for inter-modal connectivity which includes

creation of warehouses, ICDs, logistics parks, and Special Economic Zones

(SEZs) among others.

Developing PPP frameworks for manufacture of state-of-the-art rolling stock,

locomotives, passenger coaches, track equipment, and signaling infrastructure

with technology transfer arrangements to enable future indigenous development.

Progressive separation of railway infrastructure and Operation & Maintenance

(O&M) that would spur private sector initiatives and participation.

Progressive rationalization of freight tariffs to further simplify freight tariff slabs

as well as reduce cross-subsidy for the passenger operations.

85

Creation of an independent and transparent Rail Tariff Authority which is critical

to ensuring increased private sector participation.

Opening up operation of passenger rail services to private operators on a revenue

sharing framework which could dramatically improve customer service by

providing for a competitive environment.

Co-operation and co-ordination with state PWD/NHAI which will become

increasingly important during construction of corridors and over bridges.

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87

BEST Bus

INTRODUCTION

"The BEST way to experience Mumbai is on a BEST bus!" Any hard core Mumbaikar

vouches for this statement. BEST (Marathi: बृ�हन्मुं��बृई विद्यु�तपु�रठा� आणि� पुरिरहन उपुक्रमुं /

बृ�स्ट) or the Brihanmumbai Electricity Supply and Transport is Mumbai's public transport

service and electricity provider.

The government-owned organisation, which was set up in 1873, operates as one of India's

largest fleets of buses. Originally setup as a tramway company, it branched out into

supplying electricity to the city in 1905, and later into operating buses in 1926. The

BEST is run by the city's municipality as an autonomous body. It supplies electricity to

the commercial capital covering 69 sq kms and it runs 3,400 buses on 340 routes,

covering more than six lakh kms every day. It has a workforce strength of 38,000, which

includes 22,000 bus drivers and conductors. Single decker buses make up the bulk of the

fleet, followed by the double-decker buses and air-conditioned buses, which ply on select

routes. For about 50 lakh Mumbaikars or more, the BEST bus is the daily means of

travel.

Over these years, whether it is in the field of transportation or electricity, BEST has built

an impeccable reputation. Mumbai is best known to have uninterrupted supply of

electricity.

BEST is always one step ahead in public welfare. In the buses, seats have been reserved

for the physically challenged, senior citizens and women. The rule of 'entry from rear

door and exit from front door' is strictly implemented (except for senior citizens and

expectant mothers) to ensure smooth operation. BEST has won the 'Pravasi Suraksha'

award for road safety by the Government of India for the year 2003-04 and the ‘Prince

Michael International Road Safety’ award (2003-2004) given by the Prince Michael

Institute of Great Britain for contribution to road safety.

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HISTORY

The birth of the BEST dates back to 1873, with the setting up of the Bombay Tramway

Company Limited, which was given the license to operate trams in the city. The Bombay

Municipal Corporation (BMC) was given the right to purchase the company after twenty-

five years, or after seven years thereafter. In 1874, the Bombay Tramways Act was

enacted after the contract was formally signed between the Municipality and the

Company to start such a transport system.

It was in 1926 that it graduated into a motorbus service with a modest fleet of 24

vehicles. Be it streetlights or electricity for commercial /household use, BEST was the

first to introduce these facilities in India, as early as 1903. Soon, the BEST Company won

repute as a model organization. It served Mumbai city well, by efficiently supplying two

very basic needs.

The BEST Company was then dissolved on August 6, 1947. After World War II, and

India's independence, the management of the company was taken over by the BMC in 7

August 1947, and the company was renamed ‘The BEST Undertaking.’

As the company grew post-independence, it increased its fleet from 242 to 582 buses

over the next decade. In 1949, BEST took over the Bandra Bus Company, which used

to ply buses in the suburbs. In 1964, due to high operational costs and poor public

support, its long-running tram services were terminated.

The company achieved the status of being the first company in the country to issue

computerised billing in 1974. In 1994, the company introduced electronic meters, in a

move to replace the less accurate electric meters and made room for BEST undertaking.

The BEST’s ownership was then transferred to the Municipal Corporation. The BEST

Undertaking was the first 'public' enterprise in the country … to run it successfully

became a national duty!

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PEST ANALYSIS

POLITICAL FACTORS

The political situation of any country strongly influences any industry that wishes to

flourish in the framework of the country. The BEST is run by the city's municipality as

an autonomous body yet it is affected strongly by the action and decisions taken by the

men with authority.

The government is instrumental in the passing of the various laws and acts, which govern

the working of the industry and has a very strong bearing on the success of the industry.

The buses used by the State Transport Undertaking account for almost 90% of the bus

sales. The budget of how many buses are to be ordered is dependent on each state

government. If the government is hard pressed for funds the number of replacement units

for buses ordered will be low. This will have a great influence in the demand and the

profitability of companies in the manufacture of buses.

Permits : There are basically three types of permits that are required to be taken by any

transporter. These are:

i. National permit: This is the permit issued by the transporter, permitting him to

move in minimum 5 states. If more states are to be covered than respectively the

permit fees has to be paid. Hence the government takes a consolidated tax

payment at the time of issue of permits and thereafter the transporter does not

require paying tax at each and every permitted state. It is renewed every six

months.

ii. State permit: This is a permit allowing the transporter to move freely within a

particular state. The tax payments and the privileges enjoyed are same as National

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Permit but the only distinguishing factor is that it can move only within one

particular state. It is renewed every six months.

iii. Temporary permit: This is similar to National Permit but instead of the period of 6

months it is allowed only for 15 days for all the states but the transporter here has

to pay individual taxes for each state unlike Consolidated in National Permit.

Depreciation policy: The government decides the amount of depreciation that can be

charged on the use of Heavy Motor Vehicles. Since corporate and institutional customers

normally purchase the Heavy Motor Vehicles, they rely heavily on the depreciation that

can be provided for tax shelters since it helps show a lower net profit and higher notional

expenses. The increase in depreciation rates therefore can help push the sales since it will

spur more Heavy Motor Vehicle buying on account of the tax shelters received. In the

past, the GOI changed the depreciation norms to control the tax collection from

corporation. For example: the decrease in depreciation rates from 33% in 1989-90 to 20%

in 1990-91 led to drop in Heavy Motor Vehicles.

Infrastructure development: All the vehicles according to their weight have to pay a

fixed amount of tax known as toll tax. The government uses this money for the

development of roads, maintenance etc.

The bus service in Mumbai, run by the Bombay Electric Supply and Transportation

Undertaking (BEST), is arguably one of the most extensive and well-managed public

road transport systems in the country. BEST buses carry approximately 4.2 million

passengers a day. This makes BEST Buses and BEST Bus stops became easy targets for

political nuisance and bombings.

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ECONOMIC FACTORS

Though the BEST is a government-owned company, it does not receive any financial

assistance from the BMC, or the state government. The daily earnings of Brihanmumbai

electricity supply and transportation from transport system is Rs. 2 crore ($458,450). It

collects Rs. 70 lakh ($160,450) worth of five rupee coins daily, Rs. 48 lakh ($110,000)

worth of ten and twenty rupee notes, and Rs. 60 lakh ($137,535) worth of fifty rupee

notes, through its fare collection system.

This has led a unique situation wherein it has accumulated a surplus of short change. The

company floated tender inquiries to 54 banks to exchange the loose change, which

totalled 4.67 crore ($1.07m). However, none of the banks sent in a single bid, some citing

that their vaults are full, and others saying it would be unprofitable for low

denominations, given security considerations.

Modes Of Revenues:

i. Transport revenues: For the financial year 2005–06, BEST earned

Rs. 1,540.13 crore ($352.92m) with a profit of 140.8 crore ($32.3m) from the

electricity department alone. However, its transport department earned

948.68 crore ($217.39m), with a loss of 140.30 crore ($32.26m). This gives it an

estimated net loss of Rs. 50 lakhs ($114,575). Newer management techniques,

such as retrenching of excess staff (494 till date), and the closure of less

patronised routes, have reduced the losses in recent years, from a high of Rs. 175

crore ($40.1m) in 2001.

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Transport revenues of the Brihanmumbai Electric Supply and Transport

a) Blue: Earnings

b) Red: Expenditure

c) Green: Net profit/loss

ii. Advertisements: BEST earns revenues by way of advertisements on its buses and

bus-stops, and through rent from offices on owned properties. They have now

started advertising on closed-circuit televisions, installed in public buses operated

by Brihanmumbai Electricity Supply and Transport (BEST).  Major advertisers,

including Hindustan Unilever, Paras Pharma, Pidilite Industries, Esselworld,

Playwin Lotteries and Tata Sky have started relaying commercials in the BEST

buses.  

The advertisers need to shell out just Rs 9,300 for one 10-second advertising slot

in all the 3,100 buses that is fitted with television screens. The cost per commercial

per bus becomes a paltry Rs 3 (which is lower than the minimum fee of Rs 4 on

BEST).

93

What started as a security initiative with close-circuit cameras to record passengers

and save the images in a blackbox below the driver’s seat has now become a

revenue initiative. The company plans to air around 12 minutes of advertising every

hour, between 7 am and 10 pm daily.  Fevicol, for instance, is currently airing 15

spots a day on 100 buses at a price of just Rs 90 per bus.

The adwallahs seem to have figured out another way to catch the attention of the

ordinary consumer. Enticements for products will now scream out from best bus

tickets. The ads printed on the backs of the 6x3 cm bus tickets, printed on low cost

paper, will rope in Rs 80 lakhs over three years. This, the best administration

hopes, will help cut the burgeoning Rs 132-crore deficit. The scheme is as yet

confined to so-called fast denomination tickets of Rs 3,4,5 and 6, this means that

promotional messages pops out of approximately 7 crore of the 13 crore tickets

printed every month. so far the company has received a green signal from mtnl,

icici and hdfc banks, lifestyle stores like akbarally’s, bombay bazaar and some fast

moving consumer goods companies like everest masala, the advertisements will be

printed in seven colours—black, blue, green, orange, magenta, red and brown.

iii. Public Call Offices: At present they are in 75 BEST single-decker buses. The plan is

for Hutch PCOs to be in over 1,774 single-decker buses. And Tata Indicom will

install another 1,626 CDMA phones. The Hutch PCO is a GSM mobile phone. One

can make local, STD and ISD calls using one-rupee coins. Local calls will be charged

at Rs. 1 per 60 seconds, STD calls at Rs. 1 per 20 seconds and ISD calls at Re 1 per 6

seconds.

The cellular operator is expected to pay 42.5% of their income to BEST. Assuming

Rs. 100 worth of calls are made per bus per day, or Rs. 3,100 per month, BEST will

earn 42.5%, i.e. Rs. 1,318 per bus per month, plus a fixed rental of Rs. 150 per month.

That comes to an income of Rs. 1,468 per bus per month. Multiplied by 3,400 single-

decker buses, BEST stands to net Rs. 50 lakh per month from the project.

94

BEST may be giving itself a pat on the back for innovating new schemes, but doubts

persist over its benefits. Considering the deep penetration of mobile telephony, the

PCO in buses doesn’t seem that lucrative a proposition. However, Mr Khobragade,

BEST undertaking manager claims that any viable idea is a lurking opportunity. “My

main task is to reduce losses, till it is not detrimental to the interest of the commuters.

In fact, this scheme is good economics of better utilisation of assets,” he added.

iv. Other modes: 60 acres of space in BEST bus depots may be sold to raise some Rs

1,200 crore for the cash-strapped undertaking. These in all probability will be

converted into malls.

Other things also affecting the economic proposition of BEST are:

a) Trade cycles: Trade cycles such as recession or prosperity have a direct

impact on road transport services. When there is recession or slowdown in the economy

and other industries such as travel and tourism, exports-imports, the level of economic

activities are low as a result there is low demand for transportation services such as

passenger transport. This has a direct impact on the operations and profitability of this

industry. It is during this time that the transporters need to effectively manage demand

and supply and market their services to retain their customers.

b) Fake currencies: The Bombay Electric Supply and Transport also faced a

crisis after receiving fake currencies. This happened over a span of three and a half

years. The loss faced by the BEST stands at Rs 78,320, which was collected in the form

of fake currency, sources in the BEST say.

Abdul Sattar Tamboli, spokesperson, BEST, says: "Since the year 2000, we have

received fake notes worth Rs 78,320 in denominations of Rs 500, Rs 100 and Rs 50.

During the year 2000, the BEST received fake currency worth Rs 20,320. In 2001, the

amount stood at Rs 26,000, while in the year 2002, the BEST recorded losses of Rs

12,000. In 2003, BEST has received fake notes worth Rs 20,000. Tamboli says: "We

have alerted all our bus conductors and instructed them not to take the notes if they

suspect the authenticity." Sometimes, bus conductors in crowded busses are unable to

95

check the notes properly. Taking advantage of the situation, the culprits hand over

fake notes. Sources say that passengers are unaware that the notes that they are

exchanging are bogus. In good faith, they purchase tickets, and after the note is given to

the BEST collection department, it is revealed that it’s fake. The BEST is also taking

precautions to avoid such problems. Elaborating on loses, they recovered these losses

through bad debt account. As far as the fake currency is concerned, BEST has set them

ablaze in their security as the officials do not want them to go back in circulation.

c) Fuel prices: The hike in fuel prices puts an additional burden of Rs 18

crore on the BEST, yet prices of tickets cannot be raised. On an average, the BEST

spends Rs 200 crore every year on fuel and with losses of Rs 200-250 crore since the

last few years, the extra fuel cost will be an additional burden. "The situation is

alarming since the hike in fuel costs was not factored into budget estimates for the

current financial year," said Kshatriya.

The undertaking is trying to get higher passenger volumes to make up for the loss. BEST

cannot increase ticket rates as that would push them out of competition . The

undertaking will have to instead raise volumes and explore advertisement revenues to the

fullest.

The BEST is in a fix because its diesel-run buses are competing with taxis and

autorickshaws using compressed natural gas (CNG). With minimum fares already at

Rs 4, even a nominal hike of a rupee will make buses costlier than shared taxis and

autos, said Kshatriya. "Since 70% of our revenue comes from short-distance passengers,

increasing the minimum fare is next to impossible," he said.

So the BEST is hoping to increase passenger volumes, which are currently at 45 lakh

daily, through innovative concepts like single-day-multiple-route ticket and monthly

season passes like those for suburban trains.

96

BEST will create tailor-made solutions for individuals and groups travelling in BEST

buses to make the deal attractive. BEST officials said that they will also expedite the

process of shifting more buses to CNG to cut fuel costs.

As of now, BEST has 300 CNG buses in its fleet. The new buses introduced by BEST

run on CNG, making them economical to operate. BEST has also introduced a 35 seater

bus which helps commuters reach inaccessible areas thereby generating revenue. The

buses could also be run on routes where it was not economical to operate single decker

buses thereby allowing them to cut costs.

Soon it has to convert another 300 to CNG as per a Bombay high court order. They will

ramp up CNG conversion from now. But that will also imply additional investment on

account of CNG dispensing stations at depots. But in the longer run, CNG will be a better

alternative despite the capital expenditure at the outset.

The BEST, being a public utility company, cannot increase electricity and bus fares to

maximize its profits. An increase, when affected, is usually carried out to curb losses due

to inflation. BMC approval is needed before such an increase goes into effect.

97

SOCIOLOGICAL FACTORS

BEST believes that it has a social obligation towards the city where it has grown. As such

it is felt essential to provide concession to certain sections of society. A few schemes are

listed below.

1. Reservation of Seats: The BEST has reserved 3 seats for handicapped person, 2

seats for Senior Citizens and 6 seats for lady passengers in the Single Decker

buses. In the Double Decker buses it has reserved 3 seats each for lady passengers

and handicapped persons and 2 seats for Senior Citizens.

2. Front Door Entry: The BEST have permitted physically and mentally

handicapped persons, senior citizens, and expectant mothers to board the bus from

the front door except at starting point

3. Free Travel Facility: Presently, the BEST provides free travel facility to the

freedom fighters. One person accompanying the freedom fighter is also permitted

to travel free. Municipal Councilors and Non-Councilor Members of the BEST

Committee are also permitted to travel free on BEST buses. Adhoc Members of

Legislative Assembly and Legislative Council, accompanied by his wife and

Female Members accompanied by any one viz. husband, son, daughter, father,

mother, brother or sister are allowed to travel free on BEST buses. Police

personnel are allowed to travel free on BEST buses against an ad-hoc payment of

compensation towards free travel facility by the Government of Maharashtra. This

facility of free travel however is not available on Luxury and Air-Conditioned

services.

4. Concession in Fares: Children below 12 years of age are charged concessional

fare. Student studying upto Higher Secondary and upto the age of 22 years are

charged concessional fare. Persons who are 60 % and above, permanently

Orthopaedically handicapped are charged concessional fare. Blind persons are

charged a flat fare of Re.1/- per journey. However, concessional fare facility is not

available on Luxury and Air-Conditioned Services.

98

5. Provisions made for students: The BEST Undertaking has made special

arrangements for students taking their HSC and SSC exams. The exams

commence from February 21 and March 5 respectively. The student concession

passes will be considered valid from the residence to the exam centre for the

period of the exam. The BEST has instructed its drivers to stop buses at all stops,

especially those near the exam centers. The depots have also been asked to ply

extra buses if the need arises.

6. Ladies Special & Ladies First Services: In Order to reduce the hardships faced

by the Ladies commuters, while boarding the bus during the peak hours, the

BEST has introduced Ladies Special Trips on heavily patronised routes. Similarly

“Ladies First At Starting Points” trips are also provided to facilitate lady

commuters.

7. Excursion Action Plans: The city of Mumbai has various Excursion points

where heavy passenger traffic is generated from the City and Suburbs during

Weekends and Holidays. To cater with the heavy demand of the passengers, the

BEST operates Excursion Action Plans on various routes on Sundays/Holidays.

Some of the Action Plans are Juhu Chowpatty Action Plan, National Park Action

Plan etc.

8. Festival Action Plans: Mumbai being a cosmopolitan city its citizens celebrate

their festivals with gaiety and pomp. The BEST operates special buses during the

festivals like Ganapati Festival, Diwali Festival, Christmas and New Year Eve.

Of the total fare, 15 paisa goes for the education of poor people. This way BEST is

fulfilling its social obligation towards the society.

99

TECHNOLOGICAL FACTORS

IT has always been an integral part of government owned organisations. All have been

using IT in some way or the other for quite some time now, starting from managing daily

accounts to having ERP systems in place to run such huge operations. For administrative

purposes, BEST started an Electronic Data Processing (EDP) department way back in

1968. At that time they used to hire computer hours to work on IBM 1401 machines and

since then they have housed mainframes, minicomputer systems running UNIX as well as

servers running Novell NetWare and Windows 2000.

Presently, BEST is using IT systems in more than one ways. BEST is using IT systems

for everything from material inventory to billing electricity consumption. They have

applications such as payroll, ticket accounting, daily vehicular returns and financial

accounting system. They are using applications in the traffic department for planning bus

routes and doing load factor calculations.

An Online ticket accounting system (OLTAS) is being used for managing the daily

collection of tickets and revenue generated therewith. These implementations are

lightening the burden of government employees and helping them administer processes in

a more accurate and faster way which in turn increases overall productivity of the entire

organisation.

a. Compressed natural gas bus: The demand for petroleum products in India has

been increasing at a rate higher than the increase in domestic availability. At the

same time there is continuous pressure on emission control through periodically

tightened regulations particularly for metropolitan cities. In the wake of this

situation BEST realised the urgent need to promote use of alternative fuel as

substitute. Among the options Compressed Natural Gas received a great deal of

100

attention and has been already applied successfully to some of the BEST buses

(first time in India). The BEST is planning to increase the strength of CNG buses

in its fleet.

The reasons for using CNG in its buses are:

CNG can be used in the existing SI/CI engines with minor modifications.

CNG is a clear burning fuel, with no black smoke and very low particulate

emissions. Thus CNG engine is environmental friendly.

CNG being lighter than air, diffuses upwards.

CNG is very safe fuel due to its very narrow flammability limits.

Low noise level of the engine. This will add to passenger comfort.

b. Web Site: BEST uses its Web site primarily for delivering information to the public.

This site gives information about bus routes and buses between locations. Getting

information on all the routes of such a complicated network is exactly what BEST

commuters want. BEST has about 6,000 buses which run from one end of Mumbai to

the other on multiple routes.

c. Smart Cards: As we opt for cashless transactions, starting from shopping malls to

hospital bills to e-bookings; every transaction is being carried out with plastic cards

with some technology or the other embedded in the same. No one likes to be

burdened with responsibility of carrying money and especially the pain of carrying

change for traveling by public transport. Looking at that and other benefits attached to

card based transactions, BEST has launched smart card services for its commuters.

This card has a chip embedded on it carrying all relevant information. These cards

come as the counterpart of rail passes offered by the suburban railways. The chip

inside covers details such as the route permitted and the validity of the card. These

smart cards are checked with the help of a handheld device by the bus attendant

(conductor). If the card is valid, the conductor gets a green signal and card is

authenticated. BEST has about 6,000 handhelds for conductors. This service has

been introduced by BEST not for low pricing but for unlimited travel on the specified

101

route in any bus with any number of changes which makes it a very useful tool for

commuters.  

To help commuters in the best possible way, BEST and the Indian railways are

joining hands. A collaborative project is underway to offer a common smart card

for both bus and train journeys for commuters in Mumbai. This RFID enabled

smart card will work as a prepaid card which will allow citizens to travel in any mode

without worrying about cash in their pockets. In order to reduce the rush during peak

hours and to improve service this collaborative work is taking place.

However, BEST needs an additional technology to measure the distance covered. All

the buses therefore will use GPS devices to track the current position of the bus which

will record the IN and OUT stations and money will be deducted from the card

accordingly. Because of the GPS enabled RFID smart card facility, commuters will

be able to travel hassle free and in future they will also get timely information about

the movement of buses so that they can schedule their journey accordingly. IT in such

initiatives is focused more on commuter satisfaction and comfort. The money matters

of refills for these cards will be managed by a bank and this facility is available now.

d. Global Positioning System: ‘Imagine this: You are standing at a bus stop and an

electronic indicator tells the exact number of minutes in which the bus will screech to

a halt before you. The indicator also flashes information about the traffic situation,

thereby letting you know the travel time between two destinations. Sounds

improbable?’ However, with the Brihanmumbai Electricity Supply Transport (BEST)

undertaking considering deployment of Global Positioning System (GPS) for its bus

service, the average Mumbaikar’s daily commute might just hitch a ride on the hi-

tech highway.

GPS technology opens vast vistas for transport. GPS is based on reception of signals

from satellites, with the aim of fixing the exact location of an object, which could

even be a bus. Therefore, GPS will enable BEST officers sitting in the control room

to monitor the movement of each bus in the city.

102

If the BEST manages to pull off this hi-tech coup, it will position itself as the

country’s first public transport body to deploy the GPS system. The technology will

enable them to be in touch with their drivers in real time. The BEST officials can ask

them to drive slowly if they are speeding or instruct them to avoid certain routes

where there is a traffic jam or flooding.

BEST

Smart card pass system This allows commuters to

travel on a specified

route in any bus with any

number of changes for a

specific number of days.

RFID & GPS based

Smart Card

Currently under

development, this project

will allow passengers to

travel with a prepaid card

on any bus. GPS devices

will enable the

calculation of the fare to

be deducted on the basis

of distance covered. This

will serve as a common

card for both buses and

railways.

103

e. Closed Circuit Cameras: Also after the blasts, a precautionary measure has been

taken by BEST to ensure safety checks for passengers and therefore, BEST bus

service has decided to install close circuit cameras in its entire fleet of over 3,000

buses. The CCTV (closed circuit camera TV) installed at various positions in

BEST buses keeps an eye on all activities of passengers. To start with, 200 buses

were fitted with CCTV's and the recorded videos will be stored for at least three

months by the Mumbai Municipal authorities. By this, BEST is sending out a

message that every individual is being watched and every action is being

monitored by these closed circuit cameras.

f. LCD display Screens: BEST gave final touches to a project by installing an

‘in-house entertainment systems’ in its 3,350-strong fleet of buses. The scheme

was part of a broader plan to install surveillance systems in the buses. Many buses

are equipped with LCD display screens. Commuters have the choice of viewing

anything, right from news, music videos, and advertisements to even cricket

matches. BEST has allowed EMNET to put up the LCD screens. While this is a

welcome relief for the four million daily commuters of BEST, it also means extra

bucks for the loss-stricken transport division. Certain revenues will be earned by

BEST from the advertisements that will be displayed on the screen. A part of this

revenue will go to EMNET.

g. Route network information through mobile phones: The users of Reliance and

TATA mobile services can now get the information of our entire route network on

their mobile phones. The Undertaking has teamed-up with these two mobile

service providers for helping its esteemed commuters, to reach to their desired

locations.

104

7 P’s of Marketing Mix

PRODUCT

Core Services: The passengers are the consumers on the serving list of the BEST i.e

transporting them within the territory of Mumbai. The customer’s need of reaching a

particular destination has also to be satisfied without customers being left uncomfortable

and the main motive of transportation being accomplished.

Peripheral Services: Peripheral services are those which are either “indispensable for

the execution of the core service or available only to improve the overall quality”. The

peripheral service offer represents both the expected or tangible product and augmented

product.

b) Expected or Tangible Product

BEST provides passenger with a number of features which helps them make the journey

of the commuters less tiresome. These initiatives include the exhibition of the number of

busses which travels that route. The features of expected product are:

1) Timeliness: people travelling by bus expect it to arrive at a particular depot on

time and also reach the required destination on time. Though there is no

guarantee given by BEST busses on this due to the traffic on Mumbai roads.

2) Cleanliness: The basic environment expected by a commuter is hygienic and

pest free. The buses after entering the bus depot are cleaned through machines

which maintain the external appearance of the bus. The buses are washed twice

from inside so as to keep it clean

105

3) Safety of passengers: Safety being a main concern, and especially after the

entire bombing taking place in the BEST busses. Buses are now being equipped

with CCTvs, messages are displayed on the screen, and these CCTvs also help in

identifying any suspicious product kept under seats.

4) Proper ticket dispensation and checking: to ensure this, various facilities like

smart card, seasonal passes and automated machines have been introduced. This

feature makes it convenient for the passengers as they do not have to carry money

to buy a ticket.

5) Proper planning of structure of bus for easy entry and exit: BEST busses are

very organized unlike the railways which have one exit and entry gate; BEST

busses have 2 gates the back gate is for entry and the front gate for entry.

However the BEST officials are a little flexible with this feature when it comes to

senior and handicap citizens.

Additional Services: The common citizen of Mumbai is obviously not aware of many

surprising features of the BEST's Bus Service. Just to state a few examples:

1. Bus Route No. 166 - plies on roads interconnecting maximum Hospitals.

2. Bus Route No. 161 - This route covers on the way maximum Oil Reservoirs and

unpopulated areas in Eastern wings of the city.

3. Bus Route No. 9 - A network of large number of school and colleges is

interwoven by this route.

4. Bus Route No. 320, 22ltd., 25ltd. - These routes have an outstanding feature of

connecting two largest water reservoirs of the city.

5. Bus Route No. 1,66,202 - Round the clock operating bus routes.

6. BEST busses also now provide with PCO’s in the busses with nominal rates for

the passengers to make the calls, they also have a facility for the hutch customers

to deposit their bills in the bus itself.

106

The Augmented Product:

1. Softer seats and air condition bus

2. Concessions for certain sector of society like freedom fighters, military men.

3. Permanent Reserved seat for ladies, old people and handicapped people

4. Automatic ticket fare collection

5. Smart cards

6. Hutch PCO’s

7. Hutch bill deposit boxes

The potential product:

1. Providing separate line to BEST bus on maximum number of route

2. Less waiting plan

3. Disaster management

4. 24 hour service on maximum route

5. Implementation of GPS on all the busses

6. RFID tags on all the BEST busses

7. CCTvs to be installed in all the busses to ensure passenger safety

Product width

Articulated single deck bus (vestibule bus): BEST has introduced these buses to

have economical bus operation and different modes of transport to carry more

passengers particularly in peak hours. More buses would be introduced in a

phased manner.

A/C luxury bus: In an honest effort to attract the private vehicle owners to BEST

buses and thereby reduce the congestion to some extent on Mumbai city roads,

which affects the mobility of vehicles, BEST has introduced 51 Air-conditioned

buses.

107

Low floor buses: BEST busses had received demands from various section of the

society, who are working for the

welfare of physically handicapped,

regarding need for introducing Low

Floor buses in the city of Mumbai. In

response to these demands and

suggestion, BEST has launched the

trial run of Low Floor buses. This trial

is for 6 months, Initially these buses are operated in the suburban area of the

mumbai City.  

Automatic transmission buses: The continuous movement of left foot for

operation of clutch and left hand for gearshift lever also adds to the driver fatigue.

The BEST has introduced buses with Allison Automatic Transmission on the

roads of the Mumbai City

Ladies Special & Ladies First Services: In Order to reduce the hardships faced

by the Ladies commuters, while boarding the bus during the peak hours, the

BEST has introduced Ladies Special Trips on heavily patronised routes. Similarly

“Ladies First At Starting Points” trips are also provided to facilitate lady

commuters.

Operation of midi buses: The area in which it was not possible for the BEST to

operate the conventional buses due to narrow roads, the BEST has introduced

Midi Buses at such places. This is a 35 seater bus which goes in all the isolated

areas also. It thus goes on with its ultimate aim of providing a BEST bus service

to every nook and corner of the city.

Excursion service: BEST in collaboration with the Maharashtra Tourism

Development Corporation, has introduced a special heritage tour with effect from

26th January 1997, in an Open Deck Bus in South Mumbai.

108

Limited bus or express bus: busses which provide limited services to the

commuters can be distinguished from the red colour of their bus route nos. These

busses do not stop at all the bus stops and are therefore known as express or

limited busses. they aer faster in reaching a destination as they do not halt at all

the depots.

Composition of Bus Fleet

  Type of Bus Fleet as on 14.09.2005

1. Single Decker Diesel Buses 2841

2. Single Decker Midi Buses 63

3. CNG Buses 143

4. Air Conditioned Buses 51

5. Vestibule Buses 8

6. Low Floor Buses 5

7. MUTP Buses -

8. Double Decker Buses 280

  Total Fleet 3391

109

PLACE MIX

In general, the role of place or distribution is crucial as it is the last link between the

marketer and the end user. Therefore, the distribution or place strategies are an important

part of the marketing mix. Place also refers to the point where there is a service encounter

i.e. the servicer meets the customers. Taking BEST into consideration all the depots and

the bus stops come under place because at every depot or stop the bus comes in direct

contact with its customers

The routes operated by the BEST can be broadly classified in the following

categories.

1) Feeder Routes: These routes which feed the railway stations either from the

residential complexes or Business Districts.

2) East-West Connectors: These are the routes, which run East/West, where railways

have no role to play and connect the Western Suburb with the Eastern suburb.

3) Trunk Routes: These routes run South-North through the city and are almost parallel

to the railways.

The primary role of the BEST is to supplement Suburban Rails, which is the mass carrier.

It is for this reason that BEST always gives priority for feeder routes and thereafter for

East-West connectors where the railways have absolutely no direct role to play. The third

priority is the long distance trunk route, which is an alternative to Suburban Railways,

apart from being inter-corridor link between Suburbs and City.

At this stage it is necessary to state that when every commuter desires a direct

connection, he should realise that it is not always possible to inter connect every point

with a direct route. One change is absolutely inevitable in any city transport network.

110

Inspite of this the BEST tries to provide a direct connection wherever absolutely required

but specific access to some areas is available with one changeover.

Operation beyond Municipal Limits: The BEST operates inter-city services to three

different areas beyond the Municipal limits of Mumbai city, i.e. into the limits of the

bordering corporations. The three areas are as follows:

1)Navi Mumbai: Due to the closure of the Bombay Metropolitan Transport Corporation,

the BEST management was requested to extend some of its services from Mumbai to

Navi Mumbai, in order to relieve the hardships faced by the commuters of Navi Mumbai.

2) Mira-Bhayander: Citing the reference of the BEST operation in Navi Mumbai area,

the Chairman, Mira-Bhayander Nagar Palika and the residents of that area requested the

BEST to extend the service in their jurisdiction.

3) Thane: The Mayor, Thane Municipal Corporation had requested the BEST, on behalf

of the residents of the Thane area, to extend a few services of BEST into the jurisdiction

of Thane Municipal Corporation.

Transport is the lifeline of any city, and BEST being the monopoly stage carriage

Operator of this great Metro, it becomes the prime duty of BEST to ensure the

development of the satellite townships by providing a proper transport network. No city

or township can develop, if the Transportation, and Communication network is not proper

and it is here that the onus of developing a transport network falls on the BEST.

111

PRICE MIX

The fair prices for passenger transport is directly regulated by government in case of

public transport like BEST and indirectly incase of private such as cargo or private bus

contractors. These days, bus stops situated outside several suburban railway stations are a

ripe hunting ground for autorickshaw drivers. As commuters queue up for BEST buses,

the autos scoop down, luring away passengers with an ingenious scheme—share-a-

rickshaw. Priced at par with BEST's minimum fare of Rs 3, this share-a-rickshaw

scheme, wherein auto drivers pile in three or four commuters wanting to travel a

particular route, is seriously affecting BEST's operations. This scheme is one of the major

reasons the number of commuters using BEST buses is going down.

Bus fare structure w.e.f : 25/01/2005

KMS ORDINARY LIMITED AIR

CONDITIONED

ADULT FARE CONCESSIONAL

FARE (RS)

ADULT FARE CONCESSIONAL

FARE (RS)

ADULT FARE

(RS) (RS) (RS)

3 4 1 4.5 1 13

5 4.5 2 5 3 17

7 5 3 6 3 19

10 7 3 8 4 25

15 9 4 10 5 29

20 11 5 12 6 33

25 13 6 15 7 37

30 14 7 16 8 41

35 15 7 18 9 45

(Maximum) (Maximum)

112

Abov

e 35

Kms

Rs.2 for

every addl.

5 Kms or

part thereof

Rs.2 for

every addl. 5

Kms or part

thereof

Rs.5 for every

addl. 5 Kms or

part thereof

Even in cases where BEST fares are much cheaper, passengers prefer to hop into a cab

instead of waiting for the next bus. The cabbies even run services exclusively for ladies.

With commuters giving in to the autorickshaws' and taxis' quick-travel lure, BEST buses

ferrying commuters to and fro from railway stations run practically empty.

BEST busses also have concessional fares for various age, income and social groups

Free Travel Facility: Presently, the BEST provides free travel facility to the

freedom fighters. One person accompanying the freedom fighter is also permitted

to travel free. Municipal Councilors and Non-Councilor Members of the BEST

Committee are also permitted to travel free on BEST buses. Police personnel are

allowed to travel free on BEST buses. This facility of free travel however is not

available on Luxury and Air-Conditioned services.

Concessional Fare: Children below 12 years of age are charged concessional

fare. Student studying upto Higher Secondary and upto the age of 22 years are

charged concessional fare. Persons who are 60 years and above or permanently

orthopaedically handicapped are charged concessional fare. Blind persons are

charged a flat fare of Re.1/- per journey. this concessional fare facility is not

available on Luxury and Air-Conditioned Services.

Luggage fare for ordinary and limited services : Luggage fare will be equivalent to the

corresponding Adult fares subject to the minimum luggage fare of Rs.4.00 and maximum

luggage of Rs.15.00.

Fares are charged not on the basis of distance from one stop to another stop but from one

stage stop to another stage stop.

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PROMOTION

BEST has started promoting its service as environment friendly. In order to decrease

pollution in Mumbai, government insists that people use public transport system. So

BEST is now focusing on this issue to encourage more and more people to travel by its

bus. Also the BEST is planning to increase the strength of CNG buses in its fleet. CNG is

a clear burning fuel, with no black smoke and very low particulate emissions. Thus CNG

engine is environmental friendly.

Low noise level of the engine will also add to passenger comfort. Being a necessary basic

infrastructure facility, BEST has not adopted any marketing tools. But with the addition

of new features like the smart card, hutch drop boxes, hutch PCOs, LCD screens. The

customers are spreading this information, which in turn generates goodwill for BEST and

thus help in its promotion.

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PEOPLE

They are the visible face of the service provider. They are the only ones who are seen and

heard by the service recipient. In the case of BEST the drivers conductors and ticket

checkers are the only link between the service provider and the customers.

The company is headed by a General Manager, currently Uttam Khobragade. The traffic

department is overseen by an 'Assistant General Manager (Traffic Operations)', and

assisted by the 'Chief Traffic Manager (Sr.)'. The 'Chief Traffic Manager' oversees the

five BEST zones, each headed by a 'Traffic Manager'. Each zone consists of 5 to 6

depots, whose operations are overseen by an 'Assistant General Manager (Traffic

Operation)'. A 'Traffic Superintendent' or 'Assistant Traffic Superintendent' heads each

depot.

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BEST enjoys a high degree of autonomy under the BMC; the latter approves its yearly

budget and permits increases in bus fares when required. A body of 17 Municipal

Corporators from the ruling party in the BMC forms the BEST Committee. The

committee, headed by a Chairman, keeps a tab on the undertaking's daily operations.

BEST bus comprises of a conductor, Driver and inspector. All the employees know their

duties well so that there is no clash between them. The duties of each of them is

mentioned below:

A bus conductor: A bus conductor works in the passenger section of a bus or tram -

single or double-decker - collecting fares, issuing tickets and answering queries about

routes, fares and timetables. He is seen in Khakhi colour uniform with a black bag

Helps passengers on and off buses and ensures that everyone remains seated safely

Where necessary, helps secure luggage, fold baby buggies and deal with wheelchairs

Goes from one passenger to another, asking the destination, calculating the fare,

issuing tickets from a machine, collecting the money and giving change

Checks season tickets and concessionary passes, ensuring they are valid

Assesses age and, in case of doubt, asks for proof

On request, warns passengers when their stop comes up

Checks that passengers do not stay on past the stop they have paid for

Keeps track of which passengers have already paid

Answers queries about routes, timetables and fares

Challenges fare-dodgers, vandals or troublesome passengers and may evict them from

the vehicle or summon help

Deals with lost property and suspicious packages

Copes with emergencies - deals with passengers falling ill or fighting, moves

passengers on to a replacement bus in case of breakdown or accidents

Counts the money and checks that it matches with tickets sold; may have to

personally make up any shortfall

May write a report about problems.

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A bus ticket checker: A bus ticket checker is usually a promoted post within the

company, involving planning staffing rotas, adjusting timetables, dealing with complaints

and perhaps checking tickets.

Plans and adjusts routes and timetables

Plans the rotas of drivers and conductors and arranges cover for absentees

Surveys routes by travelling on them and timing them

Might board buses to check that passengers have valid tickets and deal with those

who do not

Carries out general administrative duties.

Inspectors may also be known as route managers or team leaders.

Hours and environment of BEST employees

Most bus conductors work shifts covering days, evenings and weekends and, in many

cases, nights. Early starts and late finishes are common. Basic hours can vary from 39 to

48 per week, on a five or six day week.

Conductors are mostly on their feet, wearing a heavy money satchel and a ticket machine.

They walk about on the moving vehicle, which may be tightly packed. They wear a

uniform, which the company provides. They need to deal with passengers, particularly at

night, who might be drunk or aggressive. Hence there is a risk of verbal or physical

abuse.

An inspector spends some of the day in an office in the depot, but also travels on the

buses and trams.

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Skills and personal qualities:

Bus or tram conductors needs:

Clear speech and good communication

A good memory - for faces, fares and routes

An awareness of safety

Numerical speed and accuracy

Assertiveness for dealing with fare-dodgers and rowdy passengers

A polite manner

Physical fitness

Training:

The Undertaking has a well-equipped Training Center for the traffic staff and designed

program to re-educate them on such relevant topics as fuel conservation, safety measures,

behaviour with the public etc. Training is also imparted in Refresher Courses to improve

driving habits of the drivers under which officers check the habits of drivers constantly

and as a result of which there is a great reduction in accidents.  In the Refresher Courses,

the stress is on an image revamp from a mere BEST employee to a concerned individual

who cares for passenger comfort.  The accident-prevention wing of the BEST has an

accident prevention van with ‘safety slogans’ and equipped with instructive ‘audio-

visual’ programs.

Most operators provide on-the-job training for new recruits. The training generally lasts

two to four weeks, and includes:

Operating ticket machines

Route familiarisation

Customer care

Health and safety matters.

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Incentive bonus scheme for the employees

To provide the passengers with a comfortable bus service, BEST needs a sufficient

number of vehicles. The Undertaking has always been trying to achieve such sufficiency.

The vehicles are just one factor in a bus transport system. There are 42,000 employees

comprising of conductors, the drivers, the maintenance staff and the repairs staff in the

workshops. If all these employees are not up to the mark, no increase in the number of

buses is going to make it ‘sufficient’. So much depends on the proportion of vehicles

stabled for repairs.

Similarly, the efficiency of the service depends a good deal on the conductor and the

driver not unnecessarily holding up the movement of their vehicle, the conductor issuing

tickets promptly, and taking care to avoid altercation with the passengers. Efforts to

secure such efficiency have to be made methodically. Some efforts made by the

Undertaking in this direction in the beginning were as follows:

The system of granting an efficiency bonus of Rs.25 every quarter was started in

1951. It applied to both the conductors and the drivers. To be eligible for the bonus,

the employed had to attain a certain level in attendance and in efficiency.

Absenteeism among employees is epidemic in the March June period. For lack of

conductors and drivers, the usual number of buses cannot go out on the roads. A

special bonus scheme had therefore been instituted for this period, to dissaude them

from going on leave.

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Bonus scheme for conductors : Under this scheme, a conductor was to be granted a bonus

for extra ‘work’. The fare collected by him during the month was taken as his ‘work’.

Some of the immediate benefits of the scheme were as follows:

The number of complaints received from passengers dropped from 600 to 400 per

month.

The Undertaking could cope with the traffic without increasing the number of

buses.

Passengers had to wait for a shorter time in queues.

The proportion of absentees among conductors came down.

Incentive Bonus Scheme for other employees: Like the conductors, the three categories

of staff namely Bus Drivers, Workers in the Traffic and Engineering Departments and the

Maintenance Staff are important in a bus-transport system achieving maximum

efficiency. But, in their case, the efficiency is not of an individual; it is the result of the

co-operative effort of workers from each of the three categories. Such joint effort enables

a bus to run smoothly and punctually. This scheme was designed to keep more buses

running - that is, to reduce the number of ‘sick’ buses.

The continuous movement of left foot for operation of clutch and left hand for gearshift

lever also adds to the driver fatigue. The BEST has introduced buses with Allison

Automatic Transmission on the roads of the Mumbai City

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PHYSICAL EVIDENCE

The physical evidence of a service comes in different forms and guises. These include,

the physical aspects of the location of the service delivery such as the design,

functionality, and the aesthetics of the place. The dress, uniform, appearance, and facial

expressions of the frontline employees form a crucial part in the physical evidence.

1) Colour: The BEST buses are red in colour which helps the passenger to identify

with these busses even from a distance. At the pinnacle of the BEST bus and on

the side of it the details of the bus is mentioned like the bus no. and its route. This

information is written in Hindi and in English for the convenience of the

commuters.

2) Seats: The BEST busses have a capacity to seat 49 commuters. The seats are

cushioned ones to provide complete comfort to the passengers. There are 21 seats

which can accommodate 2 persons per seat and 1 seat in the front where only one

person can sit and at the backside there is a long seat which can accommodate 5

persons. These seats are dark green in colour.

3) In case of AC buses, there are Luxury seats with soft transo fabric. The passage of

these busses is also carpeted. These buses have cushioned handles and the seats

are dark blue in colour with texture on it.

4) Curtains: this feature is available only in AC buses. The curtains are white in

colour. The loops with which they are attached are also white in colour providing

a cool ambience inside the bus.

5) Railing: BEST buses have iron railings on the windows for the safety of the

passengers. On every window there are two railings and glass which can be open.

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6) Floor: BEST buses have iron flooring which helps the bus to stay sturdy.

However, luxury buses also have Carpeted flooring.

7) Steps: While climbing the BEST bus, commuters have to take 3 steps. In order to

provide convenience to handicap people, Low Floor Line buses are introduced

which have 2 steps in place of 3 and have wider doors.

8) Lights: BEST buses have totally 6 lights, 3 tube lights on both the sides at regular

intervals to provide convenience to its commuters.

9) Fans: In BEST bus, there is no facility of fans however; in case of AC buses 2

seats share one fan.

10) Conductor: The conductor is dressed in khaki colour uniform and wears a batch

with his name written on it and his identification no. He carries a black bag

containing all the change and the tickets. He is supposed to keep currency notes in

the front side pocket of his shirt.

11) Ticket Checker: Ticket checker or the inspector uniform is light blue in colour.

He wears a black cap and can be found on any bus stop checking the ticket of the

commuters when they get down on that stop.

12) Punching machine: Conductor carries a punch machine which is silver in colour.

He punches the ticket according to the stop where the passenger wants to get

down.

13) Tickets: The tickets are in different colours indicating the price of the ticket and

the distance covered. These tickets are made of low quality paper and are 6 by 3

inches in size with denominations written in hindi. On the ticket number are

printed indicating from 1 to 25 which indicates the stop at which person can to get

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down. Also there are charges for luggage. And on every ticket 15 paise charged as

“Adhikar” is directed towards a fund which goes to children education.

14) LCD screens: There are two LCD screens installed behind the driver’s seat. On

these LCD screens, pre-recorded public service information can be displayed.

This makes the BEST busses look hi-tech and also gives a touch of sophistication

to these busses.

15) CCTV’s: The CCTVs will be placed in three different corners of the bus, at the

entrance, the exit and the middle of the bus. These cameras monitors passenger

movement, and store the footage in a black box

16) Smart Card: They are pocket-sized card with

embedded integrated circuits which can process

information. The commuter has to present the card to

the conductor, who puts the smart card in front of the

device, which calculates the actual fare, and then

automatically debit the amount from the card. However, if passengers fail to

present the card at the time of exit the card will be debited for the full journey.

Forty entries can be registered at the validating machine in one minute.

The proximity between the card and the device is to be maintained for less than

half a second. If the card is valid and has balance, the device will give an audible

beep, a green light, and display “entry valid” sign and show the present balance

on the card. The same process will have to be repeated at the end of the journey at

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the exit. The fare will be calculated automatically, deducted from the card and

balance after deduction will be displayed to the user.

17) Bus stop: The bus stops are red in colour with space provided for people to stand

in shade. These bus stops have a board indicating the numbers of various buses

that will halt on that bus stop. Now days, advertisements can also be seen on the

bus stops.

18) Bus Depots: The bus Depots comprises of huge area where bus are parked. This

is the starting and ending points for all the busses. The washing and cleaning of

buses are also done in these depots.

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Process

This is the procedure to obtain identity card for concession. Student’s upto 12 th standard

can avail of this concession.

1. An application form may be bought for Rs. 3 from any bus depot.

2. Pay a registration fee of Rs. 7

3. Submit the application form after endorsement by the School/ Junior College

Office. The form can be submitted at the nearest depot from residence or at

the depot under the jurisdiction of where the college lies.

4. 15 days after the submission of the application, an identity card will be

issued

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MARKET SEGMENTATION

Separate marketing strategies focused on individual customer groups, each consisting of

customers with similar characteristics and needs, are more likely to succeed. These

customer groups are called market segments and the process of identifying and

separating these groups for the purposes of developing marketing plans and strategies and

of managing sales force activities are called market segmentation.

BEST undertaking provides different facilities to cater to all the people travelling by its

busses. Market for BEST busses can be broadly segmented in the following categories:

Demographic

Psychographic

Geographic

Speed

Demographic: In Demographic Segmentation, the market is divided into groups on the

basis of variables such as age, family size, family life cycle, gender, income, occupation,

education etc.

Income: While classifying on the basis of income, there are mainly two types of buses:

Air Conditioned busses and Non-Air conditioned busses. The fares of Air conditioned

busses are four times the fares of ordinary busses. These AC busses are targeted

towards those who travel by private vehicles generally the higher income group. The

carrying capacity for AC buses is 45 persons compared to 72 persons including

standees in a single decker bus, 36 per cent less.

Gender: There are few busses which are specially designed for women. The undertaking

has been endeavouring to ease the journey of lady passengers, particularly working

women by introducing ‘Ladies First’ buses at various points where the ladies are given

priority while boarding the bus at the starting point. These special busses for women’s

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are being run during peak hours in order to make travel more comfortable. Moreover, in

Non AC busses, there are few seats, around 3-4 seats which are reserved specially

reserved for women passengers.

Following table gives details for ladies special busses:

Ladies Special Buses

Route Starting Journey Area  Destination Journey Area Time

79 Gorai Depot R.G.Gadkari Chwok 8:50

   R.G.Gadkari Chowk P.Thakre Nagar Bus Stn. 17:49

606 Tembi Pada Bhandup Station (W) 8:06

Bhandup Station (W) Tembi Pada 19:15

Bhandup Station (W) Nardas Nagar 17:45

259 Gorai Depot Mith Chowky 08:27

Education: In Mumbai, very few schools and colleges have busses of their own and

even those who have they charge extra from students for lending this service. Since all

students might not be able to afford private busses of their school they travel by BEST

bus as it is an inexpensive mode of travelling. Also many schools and colleges do not

even have private buses of their own. Students therefore mostly travel by BEST busses.

There are concessions provided by BEST bus for students. If students follow the above

mentioned procedure and get their identity card made, they will get concession of 50%

which is also known as half ticket. For example, the minimum fare for travelling by

BEST bus is Rs.4. However, if students show their Identity card they will have to pay

Rs.2 instead of Rs.4.

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Pcychographic Segmentation: The basis of segmentation in this type can be social class,

lifestyle, or personal characteristics of the groups. Here comfort comes into picture as

well off people would like to travel by Air Conditioned busses rather than Non-Air

Conditioned ones.

Comfort: While classifying busses on comfort bases, Air Conditioned busses are

more comfortable to travel with as compared to non Air Conditioned ones. BEST

introduced these busses in an honest effort to attract the private vehicle owners to

BEST buses and thereby reduce the congestion to some extent on Mumbai city

roads, which affects the mobility of vehicles. BEST has introduced 51 Air-

conditioned buses.

Low Floor Buses: BEST also has Low Floor Buses which cater to the needs of

physically handicapped people. These busses have wider entrance to help

handicapped people enter the bus safely.

Geographic Segmentation:

Unlike products that can be distributed far and wide using trade channels, customers have

to be present in or around the point of delivery of most services. This makes geographical

base quite vital.

Distance: Unlike products that can be distributed for and wide using trade

channels, customers have to be present in or around the point if delivery of most

services. This makes the geographic base quite vital. For buses, the residents

living in a radius of about 1.5 to 2 kilometers will ofrm the tarket market

segmentation. There are few busses which cover long distances and some which

cover short distance. For example, Bus number 347 provides quick short service.

It starts from Goregaon Station (East) and travels till Gokul Dham. Another such

bus is bus number 415 which moves to and fro between SEEPZ and Agarkar

Chowk. Buses which operate on longer routes are bus number 33, 241 etc.

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Speed : There are few busses which are known as express bus. These busses take

less time to reach their destination. They also stop at alternate bus stops and hence

reduce the time taken to reach its destination. The travellers are however charged

little more than the fare they pay in ordinary bus for the express service provided

by this bus. To facilitate its easy recognition, the bus number of these busses is

written in red colour as compared to general black colour of ordinary bus. Few

examples of express buses are 210, 707 etc among others and that of ordinary bus

are 79, 241, 33 etc.

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GUARANTEE WARRANTY

Best busses are government owned, not being private bodies they lack in external

infrastructural facilities which makes it difficult for them to give guarantee about their

services. At first these busses claimed that they would always reach the destination on

time and therefore every bus has a specific and estimated time to reach a particular place.

However after considering the traffic on Mumbai roads they do not give guarantee about

being punctual.

Warranty being a collateral agreement is provided by the BEST busses. If in case a bus

breaks down mid way due to some technical faults. The commuters are transferred to

another best bus from the same route without any additional charges. There is even

warranty of the commuter’s goods or any other asset if lost in the bus. The commuter can

file a complaint and check at the loss property section for his goods.

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LINE OF VISIBILITY

A central aspect of service blueprinting is to distinguish between what the customer

experiences and perceive. The back stage and front stage activities of employees and

support processes help the customers to build expectations. Back stage is where the

customers cannot see the processes or activities and the front stage comprises of those

activities which come in direct contact with the customers and between these two aspects

lies the line of visibility.

Front office

Front office is mainly dominated by

Conductors

Drivers

The conductors and drivers affect the quality of services provided by the company to the

commuters. As they come in direct contact with the customers they are in turn

representatives of the companies.

Back office

The marketing implications of the back stage changes depend on whether or not they

affect or are noticed by customers. The current processes or the changes proposed the

back office should be within the range of acceptability by the customers. The changes

that are being proposed by the back office should be communicated to the commuters so

that they can prepare themselves for the changes which will happen in future by

explaining them the rationale, the benefits and what customers will need to do differently

in future.

Whenever changes in ticket fares are proposed by the back office staff, this always results

in resistance on part of the customers as they have to shell more money for the same

distance traveled.

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Conductors should be amiable and friendly while dealing with passengers as they

represent the company. They should be willing to extend support to the passengers. For

example, if any passenger does not know when the stop will come, he will expect the

conductor to help him with the required information.

Similarly, Drivers should be careful while driving as many lives are dependant on them.

They should also be willing to help the commuters if required.

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4 I’s of Service Industry

The 4 main characteristics of the service industry are:

Intangibility

Inseparability

Inconsistency

Inventory

4 I’s Intangibility Inseparability Inconsistency Inventory

BEST Low High High High

Intangibility: The intangibility factor is comparatively low in this service industry of

transportation. The buses are transporting the consumers from one place to another. The

service is present but the intangibility factor is comparatively lower as various methods

have been used to overcome them. Thus it’s a known fact that BEST bus is always red in

colour. The interiors and exteriors of all the busses are alike.

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4 I’s

Intangibility

InseparabilityInconsistency

Inventory

In BEST, transportation is the core product. Since it is intangible in nature a service

company satisfy its customers by providing several tangible clues like:

Colour and design of the bus

Clean and well built bus stops

logo of the bus

Proper information on stops regarding number of bus which will stop on the bus

stop

Cushioned seats inside the buses

Proper display

Uniform of the conductor and the driver

Well-trained personnel for complaint handling or grievances.

Inseparability: Tangible products are produced first and consumed later. However, in

case of service industry the idea is totally different. Inseparability is a characteristic of a

service indicating that it cannot be separated from the creator-seller of the product. A

number of services are created, delivered and consumed simultaneously through

interaction between customers and service producers.

Inseparability is quite high as both the passengers and the bus should be present if the

transaction has to take place. To increase inseparability, BEST ensures a sufficient

number of buses to see to it that whoever needs to be transported anywhere, anytime

receives the service easily.

Inconsistency (Variability): There may be inconsistency in the service provided since it

is ultimately a “human being” who provides the service and not a machine. The same

job may be performed differently by different individuals. In case of tangible products

the task is relatively easier since technology has made it possible to produce thousands of

identical products.

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This factor plays a major role in the bus industry, as there is high degree of interaction

between the providers (conductors) & the customers. Therefore, the conductors need to

be trained how to handle different passengers. The quality of service of BEST is to a

major extent limited to the conductor, so the conductor has to be well trained. The same

is the case with drivers. The drivers need to be taught to drive slowly and safely. The

customers are educated through BEST by putting posters in the bus regarding sitting

capacity, standing capacity, how passengers should stand and move in the bus, the need

for them to tender extant change, etc.

Inventory (Perishability): The inventory is always associated with the cost of carrying

the inventory. With services, inventory costs are more subjective and are related to

capacity utilization i.e. when a service is available but there is no demand. In idle service

production environment, the inventory cost relates to reimbursing staff along with any

needed equipment.

In the bus industry, the production and consumption of the service has to be done at the

same time. If a bus travels its entire journey half empty then it loses the revenue that it

could have got from those empty seats. This loss is irreversible.

This problem is overcome by BEST by proper demand and supply management. When

there is more demand for buses as in times of festivals, BEST operates extra buses.

Similarly, at peak times in the mornings and late evenings, BEST operates a larger fleet

than during non-peak hours.

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RATER

Reliability: This dimension is shown to have the highest influence on the customer

perception of quality. It is the ability to perform the promised service dependably and

accurately. Transport is the lifeline of any city, and BEST being the monopoly stage

carriage Operator of this great Metro, it becomes the prime duty of BEST to ensure the

development of Mumbai by providing a proper transport network.

Thousands of people rely on BEST busses for every day for commuting to their

destination. It may be to their school, college, office etc. It is also one of the cheapest

modes of travelling as compared to Rickshaw, Taxi, Car etc and hence many people rely

on BEST. Therefore it becomes very necessary for BEST to provide reliable facility to its

customers as such a huge population depends on its service. Just as food, clothing and

shelter are considered to be the basic needs, in the same manner the BEST bus also has

become an integral part in the life of the citizens of this Mumbai.

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Reliability

Assurance

Tangibility Empathy

Responsiveness

To ensure its customers that they will reach their destination on time, many services have

been started by BEST. These are the facilities provided to ensure its commuters reliable

service:

Zero Waiting Time Plan: The BEST operates buses with Zero Waiting Time

concept on different routes during the Morning and Evening peak hours to have

faster clearance of heavy passenger traffic outside Railway Stations and major

residential/commercial Areas. The BEST ensures that a bus is always waiting for

a passenger rather than having it the other way round. The plan is designed

keeping in mind the volume/period of traffic with a view to encourage use of

Public Transport and discourage use of private and Intermediate Personal

Transport modes like Taxis and Autorickshaws. The important points of operation

are Bhatia Baug, NCPA, World Trade Center, etc.

Excursion Action Plans : The city of Mumbai has various Excursion points where

heavy passenger traffic is generated from the City and Suburbs during Weekends

and Holidays. To cater with the heavy demand of the passengers, the BEST

operates Excursion Action Plans on various routes on Sundays/Holidays. Some of

the Action Plans are Juhu Chowpatty Action Plan, National Park Action Plan etc.

Festival Action Plans: Mumbai being a cosmopolitan city its citizens celebrate

their festivals with gaiety and pomp. The BEST operates special buses during the

festivals like Ganapati Festival, Diwali Festival, Christmas and New Year Eve.

Reliability is an important feature of any public transport operation. However it is not

always possible to get the right timings for the most regular journeys. Our Service Delay

Analysis service will analyse a particular journey, journeys or services as required over

any given time period and plot any patterns that emerge. The parameters are endless in

the analysis process and we can help in this area depending on the type of problems

which are being encountered.

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Assurance : It is defined as the ability of the company to inspire trust and confidence in

the service delivery. This dimension is considered vital for services that involve high risk

as customers may not be able to evaluate all the uncertainties involved in the process by

them.

Information regarding the route of the bus is displayed on the top right of the bus in a

box. Also this information is available on the left side of the bus. The information on top

of the bus is written in Hindi and on the left side it is written in English so that it is

convenient for commuters. The conductors and bus drivers are very helpful and provide

correct information to its passengers thereby giving them assurance that they will reach

on time.

After the 7/11 bomb blasts, there was a lot of skepticism so to instill confidence back in

the consumer’s mind, the government paid greater emphasis on security of the BEST bus.

As a precautionary measure to ensure safety checks for passengers, Mumbai’s BEST bus

service has decided to install close circuit cameras in its entire fleet of over 3,000 buses.

Each of BEST’s buses will have an audio-visual surveillance system looking out for

suspicious behaviour aboard the vehicles. The electronic eyes will be in place within two

months. The system, which will be installed by EMNET Electronic Security Private

Limited, will include cameras at different spots in the bus and a black box showing the

areas captured by the cameras at different times.

The system helps the conductor or even commuters observe and single out people making

suspicious movements or spot suspicious objects. The CCTV (closed circuit camera TV)

installed at various positions in BEST buses will keep an eye on all activities of

passengers. This can help in sending out immediate alerts and taking necessary action.

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Tangibles : The job of the tangible and physical evidence of a service is multifunctional.

The customers evaluate the quality of the service on the basis of physical tangibles

provided by the provider. In case of BEST bus, the first tangible feature which the

commuter sees is the infrastructural facility of the bus stop. Bus stops are provided with

sheds so that the passengers waiting for the bus do not have to wait in sunlight. Other

tangible would include the BEST bus. These are Red in colour. If these busses are

maintained properly, it will leave a good impression about the quality of the bus..

On-board tangibles will include cushioned seats, cleanliness in buses, Tickets, Uniform

of conductor and driver etc. Most important is stressing on the need for cleanliness in

buses. The buses are washed with water everyday and therefore the quality of cleanliness

is good in buses. The seats are quite comfortable and there are separate seats for women,

old and handicapped people. The uniform of the staff in the train also leave an impact on

the passengers. The conductors and drivers are dressed in khaki uniform and the ticket

checkers are uniformed in blue colour.

Tickets issued by the conductor are easy to carry and provide full information about the

fare. The conductor punches the amount of fare on the ticket according to the destination

of the commuter.

Handles which are used to hold if a commuter is standing while travelling are also

provided. These handles are clean and make it easy for commuters to stand properly.

Now days, LCD screens can be seen in buses. Commuters have the choice of viewing

anything, right from news, music videos, advertisements to even cricket matches. This is

another indicator of the good quality of service provided by BEST.

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Empathy: When a service provider puts himself in the shoes of the customers, he is in a

better position to see customer’s viewpoint. When customers feel that the provider is

making his best effort to see their viewpoint, it makes him feel wanted.

BEST bus provides concessions for students, has reserved seats especially for women,

handicap people and old people.

1) Free Travel Facility: Presently, the BEST provides free travel facility to the

freedom fighters. One person accompanying the freedom fighter is also permitted

to travel free. Municipal Councilors and Non-Councilor Members of the BEST

Committee are also permitted to travel free on BEST buses. Adhoc Members of

Legislative Assembly and Legislative Council, accompanied by his wife and

Female Members accompanied by any one viz. husband, son, daughter, father,

mother, brother or sister are allowed to travel free on BEST buses. Police

personnel are allowed to travel free on BEST buses against an ad-hoc payment of

compensation towards free travel facility by the Government of Maharashtra. This

facility of free travel however is not available on Luxury and Air-Conditioned

services.

2) Concessional Fare: Children below 12 years of age are charged

concessional fare. Student studying upto Higher Secondary and

upto the age of 22 years are charged concessional fare. Persons

who are 60 % and above, permanently Orthopaedically

handicapped are charged concessional fare. Blind persons are

charged a flat fare of Re.1/- per journey. Concessional fare

facility is not available on Luxury and Air-Conditioned

Services.

3) Reservation of Seats: The BEST has reserved 3 seats for handicapped person, 2

seats for Senior Citizens and 6 seats for lady passengers in the Single Decker

buses. In the Double Decker buses it has reserved 3 seats each for lady passengers

and handicapped persons and 2 seats for Senior Citizens.

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4) Front Door Entry: The BEST have permitted physically and mentally

handicapped persons, senior citizens, and expectant mothers to board the bus from

the front door except at starting point. Other passengers have to board the bus

from the back door and get down from the front door.

5) Festival Action Plans: Mumbai being a cosmopolitan city its citizens celebrate

their festivals with gaiety and pomp. The BEST operates special buses during the

festivals like Ganapati Festival, Diwali Festival, Christmas and New Year Eve.

6) Ladies Special & Ladies First Services: In Order to reduce the hardships faced by

the Ladies commuters, while boarding the bus during the peak hours, the BEST

has introduced Ladies Special Trips on heavily patronised routes. Similarly

“Ladies First At Starting Points” trips are also provided to facilitate lady

commuters.

Responsiveness: The willingness to help the customer or willingness of employees to

go beyond ones job is called responsiveness. One needs to understand the customer’s

viewpoint and then respond accordingly. The second aspect of responsiveness is speedy

response to a customer request. When response is delayed, a customer usually losses

interest in the service. The BEST is very responsive to its customers. They try to solve

the problems of its customers in the best possible manner and as fast as possible. In case a

bus breaks down, another bus is called by the conductor and passengers can continue

with their journey without having to pay again in this new bus.

Another example in this context could be how BEST dealt during 26/7 floods. At that

time all modes of vehicles had refused to work due to water clogging. At this time BEST

provided exceptional service. BEST buses were the only mode of road transport moving

on roads filled with waters till there was a traffic jam. Where private vehicle owners left

their vehicles on the roads and left, BEST was trying its best to help people reach their

destination. Some 647 of BEST’s buses were damaged in rains but the BEST didn’t wait

for the repair of the parts of the buses instead they simply replaced it and the buses were

back on road within hours. These show the responsiveness of BEST towards their

customers.

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SERVICE RECOVERY

The service delivery of best has to meet up to the expected levels of the customers so that

the experience of the traveler is not degraded, but sometimes service failure happens due

to some technical issues which may be totally unavoidable and need some time to be

dealt with. In the presence of such unavoidable situations it is necessary from the end of

the BEST to have some plans in place so that the passengers enjoy seamless and

undisrupted connectivity between places. In case of certain breakdowns during the

process of carrying customers between destinations, it is assured from the end of the best

that the traveler is shifted on another bus so that he can reach his destination with the help

of the same ticket and his journey is not disrupted.

After having learned its lessons from the punishing monsoons of Mumbai, BEST

department has already put in place a disaster recovery plan so that the services

provided by it are not disturbed due to the heavy monsoons. The following are some of

the plans implemented by them so that the passengers of Mumbai enjoy their journey

without any disruptions during the onset of monsoons and the BEST being a public sector

enterprise is able to carry out its obligation of carrying passengers even in the situations

of necessity.

Sometimes a minor defect puts a bus out of action. Therefore, in order to ensure that a

bus does not get stuck on the road for long, mechanics are stationed specially for the job

at some of the starters’ chowkies at the important termini. To deal with major defects,

there is a ‘Breakdown Lorry or Van’. The van goes to the ailing bus, and sets it right as

quickly as possible.

The schemes like ‘bus running control’, ‘the wireless van’, etc. are in operation. The

wireless van is a special feature. It does important jobs like reporting breakdowns of

vehicles to the staff concerned or asking for extra buses at points where there are

inordinately long queues of passengers.

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These schemes are definitely instrumental in increasing efficiency. And yet they seemed

to fall short of the requirements.

Standard operating procedure for responding to monsoon related flooding in greater

Mumbai

Provide Information to the public regarding cancellation, re-routing and delays in

operation of buses, location of temporary shelters arranged by MCGM and the

measures being undertaken to restore normalcy of services.

Deploy additional buses along certain routes to clear passenger traffic.

Organize transport for stranded passengers, particularly from railway stations and

for children from schools.

Disaster Management Plan

Senior Officers appointed as Co-ordinating Officers for posting in BEST Control

Room and Disaster Management Control Room.

Posting of Officers at 29 vital locations throughout Mumbai during duty / off duty

hours.

Plan for operation of 425 buses from major railway stations / strategic points for

transporting stranded passengers.

Plan for diversion of buses at 55 locations.

Fully equipped Control Room with hotlines connected to Police Control, Traffic

Police, Western Railway, Civil Defence and Disaster Management Control.

Control Room manned round the clock by Officers and equipped with landline /

WLL telephones and Wireless system for immediate contact with depots and

patrolling jeeps.

Depots / Patrolling jeeps equipped with wireless sets, walkie talkie sets and

megaphones.

Formation of Core Team at depot level.

Posting of Officers round the clock at Zonal Level during monsoon.

Constant monitoring of flood points / rail position during heavy rains.

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Daily co-ordination with Western / Central Railway, Disaster Management

Control and Weather Bureau to ascertain position.

Dissemination of information to the public through public address system /

posting of line supervisory staff.

Steps / procedure for activating disaster management plan

Receipt of information about weather condition from Meteorological Department.

Conveying of message and it’s analysis by Senior Officers.

Disaster Management Plan will be activated on notification of alert.

Divisional Officers will be informed to rush to the location of the disaster and

take necessary measures as per the plan.

Co-ordinating Officers will rush to Traffic Control and Disaster Management

Control Rooms.

SERVICE TRIANGLE

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In a triangle, all three sides are essential to complete the whole. For services all three

marketing activities represented by the sides of the triangle which are critical for the

success of the company; without one of the sides in place, the triangle or the total

marketing effort cannot be optimally supported.

Company: The company is the dreamer and the offeror. The company dreams up an idea

of service offering which will satisfy the customers’ expectation. The company is

established with the basic objective of providing the transport service. The company

makes promises to its customers regarding what they can expect and how it will be

delivered.

The company in the transportation sector in case of road transport via busses is BEST.

The BEST understood the needs of people and thus provided buses which cover various

routes and thus provides convenience to its commuters.

Provider: They are a company’s internal customers constituting employees. These are

finally the persons (staff) who interact with the customer. They are the ones who carry

out the final transaction. This interface of the customer with the company is done through

the customer’s interaction with the employees of the company.

In order to keep its promises, the company through its employees sets facilities to deliver

the promises. Hence the company aims at offering its providers with the required

infrastructure and training to optimize the quality of the transaction.

During interaction, employees and customers meet face to face and the actions of service

employees will be a major factor in influencing the customers’ expectations of the

service. Customers’ evaluation of services is based on their interaction with service

employees, therefore it is of the utmost importance that service organizations

continuously strive to improve the quality of interactions. People forget how fast you

performed a service but they remember how well you did it. Service organizations must

therefore ensure that their service employees have the skills and ability to perform the

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service to meet the customers’ expectations. The reliability of services is tested every

time a customer interacts with the employees and the service provider whom they

represent.

In case of BEST bus, the conductor comes to every individual and issues ticket. This

reduces the inconvenience of commuters who are standing in one part of the bus to travel

all the way to take the ticket. Also if a passenger is confused about the name of the bus

stop he wants to get down, even if he mentions some known land mark, the conductor

will issue the ticket accordingly as the fare of 2-3 consecutive bus stops is same.

The drivers of BEST buses are also very careful while driving and they make sure that

the passengers reach their destination on time and safely. If commuters have some

problem they can consult and solve his query.

The Undertaking has a well-equipped Training Center for the traffic staff and designed

program to re-educate them on such relevant topics as fuel conservation, safety measures,

behaviour with the public etc.

Customers: Customers are the persons who have certain needs, wants and desires. The

company makes promises to its customers. They are the reasons for the existence of a

Company and for whom the company designs its service as well as setup infrastructure

facilities and spends money on employee developments programs.

In case of BEST the providers are the only ones who interact with the customers.

Customers interact with conductors and not the BEST. Conductors have the responsibility

of ‘keeping promises’ made and enabled by the company.

In BEST, the customers refer to those people who feel the need of travelling from one

place to another. There are two types of customers, individual and institutional.

Individual customers are those who commute for their own needs and institutional

customers are those who commute on behalf of their employer to finish some given task.

CUSTOMER BUYING BEHAVIOUR

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1. Awareness of need: The need of the customer should be known exactly by him so

that he is able to define his objectives of travelling by a particular mode of

transport and is clear about the distance to be travelled and the level of comfort

desired by him for reaching his journey.

2. Information search: Travelers’ take the help of their relatives, friends etc to know

about the various modes of transport available to reach the required destination.

Define needs: The needs have to be clearly defined by the traveler as area of

preferences has to be sorted out amongst time, money, convenience.

Explore solution: The next logical step would be to explore options between

various available solutions. For a ROAD transport commuter he has to choose

between bus, private vehicles, rickshaws or taxis and decide which mode of

transport could be more appropriate.

Identify alternatives: A comparison between bus and other alternatives like

rickshaws, taxis and private vehicles should be made by the commuter so as to

zero down on the best alternative to carry out the journey

3. Evaluation of alternatives: - The alternatives have to be evaluated so that the

advantages and disadvantage of each of the listed alternatives are known and best

alternatives can be revisited and selected for a comfortable and undisrupted

journey being carried out by him. For example, if the individual is travelling by

rickshaw though he will reach his destination quickly, but the cost will be high

whereas in case of BEST bus, cost will be low and the time taken will be little

high.

4. Request service from chosen service provider:

The next step in this sequential order would be to order the service from the

desired service provider either by boarding the required mode of service and

paying the applicable set of rates for the service being enjoyed by him. In case of

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BEST, when the individual boards the bus, he is in a way requesting the BEST to

issue him ticket to reach his destination.

5. Evaluation: After experiencing the service provided by the service provider the

traveler would then evaluate the experience of his journey i.e. the services delivered

to him by his service provider gap between what he got and what he expected. If the

individual does not get what he expected, a gap is created.

6. Future intensions : If the service delivery of the service provider has exceeded the

expectations of the customer than the standards set him in his frame of mind then the

customer prefer to travel by the same mode in future so that he continues to enjoy the

same set of services in the future and his experience of a good journey is not

spoiled ,and if he has a bad journey then the customer would not enjoy travelling by

the same mode of transport again

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POSITIONING

The postioning of the BEST has been done in such a manner such that the people of all

classes can travel by it but its main focus is ‘aam janta’ which constitutes the majority of

population of INDIA, the design of the fares are in such a manner so that the affordability

is not an issue for normal travelling people and they can enjoy a smooth and a safe ride

while travelling with it. The BEST mainly provide travelling to the customers in the

inroads of MUMBAI with safety being the main concern. BEST being a public sector

undertaking has to create an infrastructure which benefits the people of all classes and

focus on all.

It has been positioned as being a mass rapid transport system which creates a medium of

transport for all members of society so that they benefit by making use of such low cost

modes of transport. The BEST positioning if you compare to other such infrastructure

providing facilities has been done in such a manner that it is quite cheaper as compared to

other private modes of transport like rickshaws , taxis , cars . It is an economical mode of

transport.

The new lines of AC buses have been cleverly placed on the routes that are mainly used

by the working class sections of the society so that they can enjoy the benefits of the

luxury offered by such buses and avoid their privately held vehicles and thus prevent

already congested roads of this metro from a slow nail of death. Its positioning is mainly

for the middle section and even the upper economic sections of the society, so that they

walk away from their cars nad other modes such as TAXIS , RICKSHAWS AND COOL

CABS.

In short you could say that the positioning of the BEST is more politically oriented or

whether socially oriented , but in general it is for the “aam janta” , so that they can enjoy

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a comfortable ride without having to shelve out uneconomical rates and burn their

already hollow pockets.

FISH BONE

Dr. Kaoru Ishikawa, a Japanese quality control statistician, invented the fishbone

diagram. Therefore, it may be referred to as the Ishikawa diagram. The fishbone diagram

is an analysis tool that provides a systematic way of looking at effects and the causes that

create or contribute to those effects. Because of the function of the fishbone diagram, it

may be referred to as a cause-and-effect diagram. The design of the diagram looks much

like the skeleton of a fish. Therefore, it is often referred to as the fishbone diagram.

Root-cause analysis (also known as Ishikawa fishbone analysis)

Ishikawa, the originator of this exercise, suggested that most problems have their causes

in:

materials

people

Back office personnel

Front office personnel

machines/equipment

procedures

Information

Customers

Other causes

This means that any problem can be analysed using the following diagram:

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FLOWER OF SERVICE

Flower of Services has been greatly divided into eight petals of a flower. It broadly

consists of:

1. Information

2. Consultancy

3. Order-taking

4. Hospitality

5. Safe-Keeping

6. Exceptions

7. Billing

8. Payments

Now all these petals will be explained in details

1) Information: Information broadcasting plays a critical role in any kind of

organization. BEST Buses lend up the required information in many ways, to begin

with generally on the front and side of the Red busses route details are written in

Hindi Language. However on some of the Bus Stops route details are given in

English on the board. Best chart offers a flexible service to bus operators and local

authorities who are responsible for bus stop infrastructure and publicity. They post

the information of roadside timetable on the depots. Compilation of roadside

timetable information from data supplied is available on the roads and with

booksellers.

BEST uses its Web site primarily for delivering information to the public. This site

gives information about bus routes and buses between locations. Getting

information on all the routes of such a complicated network is exactly what BEST

commuters want. BEST has about 6,000 buses which run from one end of Mumbai

to the other on multiple routes.

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The website is a wealth of information. Here are some interesting tidbits got from the

website -

Bus Route No. 166 - plies on roads interconnecting maximum Hospitals.

Bus Route No. 161 - This route covers on the way maximum Oil Reservoirs.

They have also published a book named THE BEST STORY in the year 1972.

Route Information: The users of a couple of mobile services can get the information

of their entire route network on their mobile phones. BEST commuter will also

receive information on BEST route numbers, BEST origin stop to final destination

stop, BEST origin stop to hospital name, BEST AC routes, BEST Express and BEST

help on their mobile device.

In addition, The Tata Indicom BEST route mobile service will provide extensive

information to Tata Indicom customers. The option ranges from:

The list, frequency, starting and finishing stop information of all the BEST

buses across Mumbai, Thane and Navi Mumbai.

The routes of all 338 buses including ring buses, extra buses, AC Buses,

Limited, Ordinary and Express Buses.

The service covers the details for all 2,997 bus stops in Mumbai

The service provides the details and buses available from the origin and 14

hospitals in Mumbai city

BEST has launched smart card services for its commuters. This card has a chip

embedded on it carrying all relevant information. The chip inside covers details such

as the route permitted and the validity of the card.

All the buses will also use GPS devices to track the current position of the bus. The

GPS will monitor the movement of buses, its speed, number of passengers, vacant

seats, stoppages - both authorised and unauthorised - and height in terrain where it

is traveling. The Global Positioning System (GPS) will be linked to the stops later.

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The GPS will allow commuters to know exactly where a bus is along a route, making

it possible to know if it will be on time. However, commuters will have to wait longer

for the most eagerly awaited feature.

The proposed scheme of BEST is to have a RFID tag affixed to the busses while the

readers are conveniently mounted at intersections, lamp posts or bus stops. The

crucial information associated with a tag is the specific bus number, the capacity of

the bus, the route number currently plying and the termination point (for example,

during non-peak hours a bus may terminate at a depot before its usual terminating

point). Tag readers continually monitor passing buses and transfer this information in

real-time to a central computer.

This service can be used for multiple purposes to locate and control bus movement in

the metro city. For example, in the event of an accident causing traffic congestion on

a particular road, the buses leading to the road can be informed. In some cases, the

routes of the bus can be changed temporarily and accordingly bus driver can be

informed via wireless network. Or if it is found that a particular bus was stuck in

traffic and that has led to a smaller gap with the next bus, the bus driver of the next

bus can be informed to slow down to increase the gap. Many such applications can be

thought of based on such an RFID application.

2) Consultancy : Consultancy is the practice of giving expert advice within a

particular field. It may also be in the form of suggestions provided to the people when

he is interested in gaining more information about a product or a service of a

particular industry. This method has become an attractive tool for the industries as it

helps in turning people into your customers. Therefore, many industries started

adopting this strategy of gaining more and more people.

However, in case of BEST Buses, they neither have any specific consultancy firms

nor consultants. If a bus traveler has some doubt then the bus conductor helps in

clearing those doubts. If a customer is new to some area then the bus conductor can

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help in suggesting where to get down i.e. which bus stop (especially when customer

doesn’t know where exactly he has to get down).

3) Order-taking : Order taking refers to the procedure of order given by the

customer to the industry for the required services. The most common method used for

order taking is directly purchasing tickets. The customer can buy tickets directly from

the conductor. There is no means of intermediaries. Smart cards are now used by the

commuters for everyday travelling. These can be checked with the help of a handheld

device by the bus attendant (conductor). If the card is valid, the conductor gets a

green signal and card is authenticated. This RFID enabled smart card will work as a

prepaid card which will allow citizens to travel in any mode without worrying about

cash in their pockets. It will also make easy for the bus conductors

4) Hospitality : previews the performance of the services provided or the behavior

in which the service provider reacts to their customers. It has always been a kind of

ritual in India for offering a warm welcome to their guest. That is, it is basically a

service performance. It includes various aspects such as the surrounding,

infrastructure, appearance, speaking tone etc. It can either click the customer or flip

the customer.

Well hospitality in the case of BEST Buses is provided only through Bus drivers and

Bus Conductors. These are the front line people or employees whom the customers

meet. There are no such proper training programs conducted for this staff. There is

some orientation programs specially conducted for them. It all depends upon person

to person for their speech, their attitude, their behavior etc. There are some seats

specially booked for ladies in Buses, and if in case any male sit on that seat with the

female standing in the same bus, then that female has a full right to lodge a complain,

and the conductor will make sure that the female gets the seat.

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5) Safe keeping : for the safety of travelers the system must include the following

elements (Federal Transit Administration, 2001):

Safety Process-Centric Elements

Safety Data Acquisition/Analysis

Accident/Incident Reporting & Investigation

Hazard Identification/Resolution Process

Emergency Response Planning, Coordination and Training

Internal Safety Audit Process

Human-Centric Elements

Driver Selection (Basic safety element)

Driver Training (Basic safety element)

Drug & Alcohol Programs(Basic safety element)

Employee Safety Program

Fitness for Duty (additional requirements beyond the drug and alcohol

requirements)

Rules/Procedures Review

Contractor Safety Coordination

Infrastructure & Equipment-Centric Elements

Vehicle Maintenance (Basic safety element)

Facilities Inspections

Maintenance Audits/Inspections

Hazardous Materials Program

Alternative Fuels and Safety

Operating Environment and Passenger Facility Management

Dedicated Busway or Roadway Inspection and Maintenance

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In addition, special attention has to be paid to safety of women (METRAC, 2000) and

children (see for example a report prepared by the National Association of State

Directors of Pupil Transportation Services, 1998). Such policies should ensure that

women and children are free from violence and the threat or fear of violence in buses,

bus stops and on their access trips.

6) Billing: Billing is one of the most important aspects as level of convenience

provided by the service provider in the billing process will attract more and more

customers towards the company. The billing process should avoid all kinds of

complexities as the customer would be wanting a simple procedure so that he does

not have to spend much time. The billing process of the best is quite simple as the

customer is billed by providing an ticket of an appropriate amount as soon as he

enters the bus. This mode of billing is most popular, but nowadays smart card a pre

paid card introduced by the best has also become quite popular as it breaks free

customer from the complexities of carrying coins for the day to day billing done by

the conductors in the bus., Smart card is basically the prepaid card valid mostly for a

limited period so that the customer pays a particular amount for a particular month for

unlimited travel between two destinations for which the pass is validated.

7) Payment: Payment in BEST is carried out by two modes . The most popular

mode being the cash payment done by the customer as soon as the customer enjoys

the service and this leads to a hassle free journey for the passenger, but sometimes

this cash paymentr leads to a quite amount of trouble for the passenger as the desired

amount of change is not available with the driver and he has to scout for change as

soon as he enters the bus and sometimes even has to get downof the bus as he

couldnot make the available fare required in change , which leads to quite amount of

trouble for the passenger . The other mode is the new system launched by thebest

department in which the passenger is billed for the amount which is a monthly charge

and payment s accpeted in the form of the cash as the debit cards have still not being

used as mode of payment by the best department. Even the ebooking facility has not

been started by this department as the need for it has not been

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GAP MODEL

Consumer’s quality perceptions are influenced by a series of distinct gaps occurring in

organizations:

Customer gap

The gaps may be due to:

1. Not knowing what the consumers expect

2. Not selecting right service designs & standards

3. Not delivering the service standards

4. Not matching the performance to promises

Gap 1: Not Knowing What Customers Want

The first type of gap is the one that exists between the ‘expected service’ by the customer

and the ‘company perception of the customer expectations’.

‘Expected service’ is the highest level of desired service existing in the minds of the

customers. ‘Company perception of the customer expectations’ is nothing but the

company’s understanding of what the customers want. This is the gap brought about by

either the ignorance or misunderstanding of customer expectation.

Generally, not knowing what the customers expect can lead to huge losses for the

organization. But in our case, there is no option in front of commuters who travel by

buses. These people, in most of the cases, are not who belong to the “elite” class.

They represent the common man who does not get the privilege to travel by auto-

ricshaws or cars. Hence, the government has a kind of monopoly when it comes to the

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Expected service

Perceived service

buses. The “Aam janta” travels by these modes since it is more economical to travel by

them.

Gap 2: Inability to Set the Right Type of Standards

Even if a firm does have a clear understanding of its customers’ expectations, there still

may be problems if that understanding is not translated into customer driven service

designs and standards. The customers may have service standard expectations that may

be either higher or lower than the standards set by the company.

In case of BEST, Commuters have to pay the entire fare irrespective of the fact that they

get a place to sit or not. This is the harsh but true reality in case of BEST. It is a right of a

customer to get a place to sit. However, due to the increasing population, people

travelling in the buses just “hope” to get a seat. This has resulted in this gap.

BEST states that it provides so many fleets of buses so that commuters do not have to

wait for the bus instead the bus waits for them. But this does not happen in reality. The

frequency of the buses is not upto the mark. People have to stand in long queues waiting

for the bus. The principle of “Time is Money” is not applicable to the service providers.

Gap 3: Not delivering to Service Standards

This is the most common type of failure brought about by day-to-day difficulties in the

service delivery. The common causes for this failure are:

Lack of the right type or trained employees for service delivery

Lack of empowerment of the employees

Failure to predict or match the supply-and-demand fluctuations

This gap occurs In BEST if the conductor or the driver does not respond preoperly.

However, conductors are amiable and provide commuters with required information and

therefore this gap is not present in case of BEST.

Gap 4: Mismatch between Promises and Performance

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There is a great temptation to promise the world in order to win over the customers.

However, it may be either physically impossible or financially unviable to provide all that

is promised. This usually results in customer dissatisfaction. The typical reasons for

failure are:

Uncontrolled communication to customers

Overpromising through advertisement

Lack of internal communication in letting the people know what was promised

BEST does not overpromise its commuters. It promises its customers safe travel and does

fulfill this aspect. Hence this gap is not valid in case if BEST buses.

A successful organization tries to fill up all the gaps. There is a huge room of

improvement & hance the governemt should take take care of all the above mentioned

factors. Even a minute change in terms of improvement will satisfy a huge number of

people.

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COMPLAINT HANDLING

No matter how well prepared you are there is always the potential for something to go

wrong. The way you and your personnel handle complaints can be the determining factor

in turning a "disaster" into a "success."

1. Listen: The company should prepare its personnel to listen and to handle each

complaint as if it were the most important part of their day. For example if a railway

passenger has some problem, his complaint should be listened carefully and solution

should be brought about.

2. Understand: Make sure personnel have a full understanding of the complaint. Prior

to responding to the complaint they need to determine the exact nature of the complaint.

Personnel should try to focus in on the main context of the complaint, and not be diverted

by side issues.

3. Take Action: The passengers should be able see that he/she matters, and that the

company seriously considers their complaint. Make sure the upset visitor knows exactly

what can or cannot be done, and what he/she may expect as a form of recompense. If the

problem cannot be solved, immediately tell the visitor approximately how long it will

take to find a solution. Often something as simple as an inexpensive complimentary gift

or some special attention from the manager or boss can turn a negative situation into a

positive one.

4. Learn: Every complaint and/or complainer provides the passenger with a learning

experience. Have your personnel share with colleagues what things went wrong, and the

steps they took to correct the situation. Keep records of past complaints, not only for in-

house training purposes, but also as a guide of future problems to prevent.

Dealing with difficult people

Here are some suggestions as to how staff member can cope with the angry guest.

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1 Do not fight to win every battle. Often it is easier to simply say, "Yes Sir/Mam you

are right. Very few angry visitors are willing to listen to your side of the story.

2.Take the angry person out of a public area. Whenever an angry person decides to

battle in front of other "guests" one loses. Invite the person into a private room, offer

him/her a drink and then listen.

3. Make sure that you know that the angry person knows that you will deal with

the issue at that moment. If a passenger is unhappy with the service, the employee

should be able to convince the passenger that his complaint will be looked into and

solution will be brought about.

4. Use the person's right name and title. If the angry passenger introduces him/herself

as "Dr. Smith" don't say Mr. or Ms. Smith and don't use a first name unless given

permission. The misuse of names or titles only adds fuel to an already explosive

situation.

5. Make sure that the person addressing the problem is competent to solve it. If

a member of your staff cannot solve a problem, then turning to someone who can help, is

doing something. Never just shrug one's shoulders and say "sorry!"

6. Rather than getting angry, try to think of something comical. For example,

imagine what this person would look like angry in his/her underwear, and then laugh to

yourself.

HELPLINE

The BEST is working hard to improve the quality of service given to the commuters. The

various cadres of authorities closely monitor the services for maintaining the Punctuality,

Reliability, and Regularity. Passenger's suggestions, queries, and complaints are

heard/examined and rightful decisions are taken.

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SMS 3040 is an SMS based interactive service offered by the Mumbai traffic police that

as of now is used to send complaints but can later be used to retrieve real-time traffic

information and other purposes. The BEST is using flexible and dynamic technologies, in

order to give maximum benefit to the citizens of Mumbai. Apart from e-mail, variable

messaging boards and SMS facility, they are spreading awareness through FM on a daily

basis.

A newly launched Web based service from the Mumbai Traffic police provides early

notifications of traffic jams and routes to be avoided. It also has e-groups for the same in

which you can register to get e-mails with traffic updates. Apart from that, the site has a

facility called e-Complain, using which citizens can launch a complaint about various

problems faced by them while travelling by Taxi or rickshaw or other modes.

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PRODUCTIVITY & QUALITY

The BEST always gets suggestions for introducing new routes. These suggestions are

categorised into the above mentioned groups.

While introducing the bus operation on any new road the following requirements are

ensured for maintaining the quality of service.

1) The road is Municipalised.

2) The road is Bus worthy and wide enough to allow the passage of two vehicles at a

time.

3) There are no overhead obstructions in the form of cables/tree branches.

4) There are enough streetlights.

5) Manoeuvering is comfortable and there are no blind corners.

6) There is a good turning circle at the terminating point for reversing the buses.

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CONCLUSION

More than a means of transport, BEST has inculcated a culture amongst Mumbaikars to

use public transport in preference to personal vehicles since the buses are clean and are

always on time. Right from the posh areas of Peddar Road to the far away suburbs,

Mumbaikars never hesitate to travel in BEST. It is very normal to see someone walking

out of an up-market club like NSCI in Worli, to get into “a BEST” to reach his residence

on Peddar road.

In the 3,500-strong BEST fleet, except for 50, all buses are from Ashok Leyland. Unique

models like double decker, vestibule, CNG, low-floor and a/c coaches are all part of this

fleet. All the Ashok Leyland chassis are tailor-made for BEST in consultation with the

customer right from design stage. Mumbaikars are truly proud of BEST.

Future plans:

Intranet will be used to connect all the depots and major bus stations.

Interactive voice response systems will be installed at the major bus stations.

Electronic display systems will be installed at major bus stops.

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RAIL- ROAD CO-ORDINATION

Road and railways both are complementary modes of transport and are mutually

beneficial. But in the post war years, there emerged competition between road and

railways. Road transport offers stiff competition to railways in India. Hence attempts

were made periodically to regulate road transport and achieve proper rail-road co-

ordination.

Transport co-ordination can be defined as a relationship between different agencies of

transport having unified, to give better facilities to the public and at the same time

allowing each mode of transport to work where it is best suited.

The problem of rail-road coordination has acquired special significance due to the

nationalisation of road transport n various states. The central government owns the

railways and the state government owns the bus transport services. It therefore becomes a

matter of adjustment and understanding between the two. Coordination is necessary in

the national interest, to the extent of, avoiding rate wars and also unnecessary duplication

of services. The railways should concentrate on heavy and long distance traffic and

busses should cater to short and medium distance traffic.

The railways cannot collect enough produce to transport unless there are good roads. At

the same time even the best of the roads cannot place the producers of agricultural

produce, cement, iron and steel and other bulky commodities in touch with the final

consumer without the help of railways. Hence both roads and railways need to co-

ordinated properly.

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