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Marketing BRTMarketing BRTSam ZimmermanSam Zimmerman

World BankWorld Bank

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Presentation ThemesPresentation Themes

• Marketing and transport• BRT as a “product”• Critical BRT product planning and design

parameters• Importance of branding

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First Rule of Marketing First Rule of Marketing Public Transport: Public Transport:

Know the Know the market(smarket(s))

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Know the Know the Market(sMarket(s)!!!!!!)!!!!!!• Characteristics of current and potential

customers, e.g., for households:– Income, motor vehicle ownership– Stage in life, e.g.

• Young single• Married with children• Retired

– Number of workers, students– Worker professions?

• Needs and preferences, current and new ridrers e.g.,:– Service types, quality and amenities– Fares

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Four Four ““PP’’ss”” of Marketingof Marketing

• Product

• Place/Position in market

• Price

• Promotion

Source: MIT

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ProductProduct

• Design public transport products for different markets and “brand” accordingly

• Differentiate by:– Mobility needs, preferences addressed– Physical and operational features– Price

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Position in Market PlacePosition in Market PlaceA properly designed public transport network will be a desirable travel option for all people, irrespective of:• Gender• Age• Education• Income, motor vehicle ownership• Life stage

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Houston Houston TransitwayTransitway SystemSystem

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PT Positioned for Customers with a PT Positioned for Customers with a Choice: The Case of Houston, Texas*Choice: The Case of Houston, Texas*

16%16%--11%11%Local Bus ServicesLocal Bus Services

61%61%50%50%70%70%Park/Ride ServicesPark/Ride Services

(Rubber(Rubber--tired tired Commuter Rail)Commuter Rail)

%Riders %Riders fromfrom

Households Households with > 2 with > 2 VehiclesVehicles

% Riders with % Riders with Household Household Incomes > Incomes > $75,000/Yr$75,000/Yr

% Riders % Riders withwith

HouseholdHouseholdIncomes >Incomes >$50,000/Yr$50,000/Yr

Houston MetroHouston MetroServices, Services, CustomersCustomers

*2002 On Board Survey*2002 On Board Survey

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Transport PricesTransport Prices

• Tools for:– Finance– Marketing– Travel Management

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Motor Vehicle PriceMotor Vehicle Price

• Make everyone, both citizens and officials, aware of the full social cost of driving,including parking– In Washington, D.C, it costscosts Approx.

$25,000/space to construct a garage, or more than $8 per work day$8 per work day. Double underground!

– Most drivers do not pay anything for parking anywhere!!

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Motor Vehicle Price (continued)Motor Vehicle Price (continued)• Price motor vehicle (auto, motor cycle)

use so that drivers pay full cost of:– Road space for moving and parking – Air pollution health impacts– Accident impacts, including injuries and

deaths– Traffic policing

• Can use revenue from auto and motorcycle users to efficiently subsidize public transport– London congestion pricing and bus

improvement program

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PT PricePT Price

• Provide sufficient revenue from all sources, including users, to sustain system

• Make PT affordable for all• Price can be matched with “brand” service

quality

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PromotionPromotion• Promotion involves communications and

information

• Customers cannot buy products they don’t know about:

– Features; What is it?

– Availability

– How to use?

– How much it costs and how to pay

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What public transport features What public transport features do people wantdo people want??

BRT as a “Product”

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Attributes Valued by Attributes Valued by nonnon--Bus Bus UsersUsers in Washington, D.C.in Washington, D.C.

• U.S. Capital, population >5 million• High income, highly educated• Great Metro, poor bus system • Non-user telephone survey

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Why People Who Never Used the Bus DonWhy People Who Never Used the Bus Don’’t?t?

100%100%Total9.75.0Other -4.4Safety concerns

2.33.0Unreliable1.65.0Doesn’t run when needed2.95.8Too many transfers6.55.9No Reason7.812.3Doesn’t go where I want8.915.9Have to wait too long

12.317.0Takes too long39.925.1Inconvenient% No% Yes

Would You Consider the Bus?Drawbacks

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Desired Bus Service Desired Bus Service ImprovementsImprovements

6.54.2Other 35.97.5Nothing3.77.3More Reliable7.110.3Service to Metrorail8.115.8Service to Destination

14.416.5Faster9.219.0Stop(s) closer to O/D

15.219.3More Frequent% No% Yes

Consider the Bus?Service Improvement

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Desired Amenities for Bus SystemDesired Amenities for Bus System

100%100%Total2.63.9Other11.213.3Better Buses19.322.0Better Shelters49.622.8Nothing17.238.1Better Pass. Info.

% No% YesAmenityWould You Use Bus?

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York Region, Ontario: VIVAYork Region, Ontario: VIVA• One of fastest growing cities in North

America: – Population, >one million. adding 40,000/yr.– Employment > 450,000, adding 20,000/Yr.– Immediately north of Toronto

• High income, high auto ownership (more 3+ than 0 car households)

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Something for Everyone and Every Trip: Something for Everyone and Every Trip: Integrated Integrated York, Ontario PT SystemYork, Ontario PT System

VIVA BRTVIVA BRT

GO EXPRESS BUSGO EXPRESS BUS

YRT LOCAL BUSYRT LOCAL BUSTTC SubwayTTC Subway

GO COMMUTER RAILGO COMMUTER RAIL

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VIVAVIVA

• VIVA “BRT lite” went into service, 9/2005• North America’s most innovative public

transit system (2006, American Public Transit Association); Canadian Transport Association “Sustainable Transport Project of the Year

• One year after opening, total PT ridership in Region up more than 38%

• >30% of current VIVA users formerly drove

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““Brand AwarenessBrand Awareness”” Survey:Survey:••Spring 2007, 18 months after openingSpring 2007, 18 months after opening••VIVA users, nonVIVA users, non--usersusers••What are they most aware of?What are they most aware of?

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Services & Amenities that Most Distinguish Services & Amenities that Most Distinguish VIVA From Other Transit ServicesVIVA From Other Transit Services

19%21%Comfortable Stations

17%22%Environmentally Friendly

21%36%Easy Connections

23%44%Comfortable Seats

54%58%Frequent Service

23%50%Real Time Passenger Info.

42%60%Buy Tickets in Station

Non-usersUsers

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Consistent with Travel Demand Consistent with Travel Demand ResearchResearch

• Public transport users and non-users are most responsive to public transport “quality” and level of service- People will ride and pay more for better

service

• They are not as responsive to physical features and price if poor service is offered!!!!

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BRT as a BRT as a ““ProductProduct””•Convenient, easy to use-Frequent service all day and all week-Easy to understand route structure-Integrated fares and off-board payment-Direct, no-gap boarding

•Reliable, fast-Dedicated transitways-Off-board fare collection-Signal priority-Direct, no-gap boarding-Direct access for disabled

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BRT as a BRT as a ““ProductProduct””•Safe, secure-Well-lit, manned, busy stations -Pedestrian overpasses-Bike lockers-Sidewalk, bikeway connections

•Comfortable-Vehicles roomy, bright-Vehicle/station seating-Standing space-AC

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““MarketMarket”” Features to Emphasize in Features to Emphasize in BRT Product DesignBRT Product Design

•• Passenger informationPassenger information–– Understandable network structureUnderstandable network structure

–– Understandable schedules Understandable schedules

––Simplicity is a virtue if Simplicity is a virtue if ““occasional,occasional,”” offoff--peak peak ridershipridershipis an objectiveis an objective

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Washington, DC Metro:Washington, DC Metro:> 35% Occasional Users> 35% Occasional Users

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Washington, DC CBD Bus Network: Washington, DC CBD Bus Network: <5% Occasional Users<5% Occasional Users

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Features to Emphasize in BRT DesignFeatures to Emphasize in BRT Design•• Ease of transferringEase of transferring

–– FacilitiesFacilities–– Service, fare integrationService, fare integration

•• Safety and securitySafety and security•• Station and vehicle qualityStation and vehicle quality

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Emphasize Integration!Emphasize Integration!•• Network structure and schedulesNetwork structure and schedules•• FaresFares•• BrandingBranding

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Price and BRTPrice and BRTMajor considerations• Sustainability • Affordability• Demand management

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Sustainability and AffordabilitySustainability and Affordability

• Need sufficient funds from all sources to cover all costs

• Can price BRT as a “premium” mode– Use “stated preference” surveys to determine

willingness to pay for quality and performance • Can make BRT affordable to all and avoid

revenue “leakage,” e.g.:– Direct user subsidies for those in need– Fare differentiation by geography

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Price as Demand Management ToolPrice as Demand Management ToolDifferentiated peak and off peak fares can be used to encourage peak public transport customers to travel in off-peak when spare “free” capacity is available

Ideal

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Fare Structure Design ObjectivesFare Structure Design Objectives

•• DonDon’’t make customers pay more for t make customers pay more for slower, more indirect travel even if slower, more indirect travel even if stations and vehicles are nicer!!!!!stations and vehicles are nicer!!!!!

• Simplicity is a virtue

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BRT Position in MarketplaceBRT Position in Marketplace: :

•• High overHigh over--all performance and qualityall performance and quality•• ““BrandBrand”” as closer to metro (or LRT), not as closer to metro (or LRT), not

local buslocal bus•• Customer Customer and developerand developer appealappeal

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Branding BRT Branding BRT •• Differentiates BRT from other parts of Differentiates BRT from other parts of

integrated networkintegrated network•• Conveys information to customers Conveys information to customers

(and developers)(and developers)–– RoutingRouting–– Access pointsAccess points–– Schedule, faresSchedule, fares–– QualityQuality

•• Consistent application of brand icons Consistent application of brand icons across all system elements across all system elements

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VVIIVVAA

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Downtown MarkhamDowntown MarkhamRemington GroupRemington Group

TorontoToronto

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Amarillo DevelopersBogota

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Presentation ThemesPresentation Themes

• Marketing and transport• BRT as a “product”• Critical BRT product planning and design

parameters• Importance of branding

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Marketing BRTMarketing BRTSam ZimmermanSam Zimmerman

World BankWorld Bank