REVISED PROJECT REPORT

ON

BICYCLE STATION AT HI-TECH CITY, HYDERABAD

BY: SUBMITTED TO:

Deepika Singh (1011007) DR. MALINI REDDYDipti Sethi (1011118)Raghav Bansal (1011055)Saswata Singh (1011066)Shivam Bhasin (1011071)Ajay Jaglan (1011048)

DONE ATINSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

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TABLE OF CONTENTS

S.NO. TOPICS PAGE NO.

Executive SummaryIntroduction

1 Macro Micro Environment 51.1 Macro Environment Analysis1.2 Micro Environment Analysis1.3 Competitive Scenario

2 Consumer Behaviour , Consumer profile, Quantitative survey 8

3 Target Segments, positioning strategy and statements 123.1 Positioning strategy3.2 Positioning Statement

4 Marketing Mix strategy(7Ps) 144.1 7P’s of Marketing5 Blueprint and quality framework 17

6 Customer complaint and service recovery strategy 19

Annexures 21Annexure 1

I Flower of serviceIi Classification of serviceIii Services Marketing triangle

Annexure 2Questionnaire

References

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EXECUTIVE SUMMARY

The project report on “Bicycle Station at Hi-tech city, Hyderabad” analyses the macro and micro environment of Hyderabad followed by consumer profile esp. of Hi tech city residents who are the target segments. Various marketing mix strategies and positioning strategies have been given to make the bicycling experience efficient, safe and a part of CSR.

Bicycling promotes efficient land use, road space, equitable transportation, fitness, reduces air and noise pollution, reduces traffic congestion, reduces taxpayer burden, reduces parking demand, reduces energy use, and is an integral part of a progressive community.

SIGNIFICANCE OF THE PROJECT

The bicycle project is significant in Hi tech region because most of Lakebed is flat,  densely-populated and was developed around streetcar lines, creating a compact layout that offers relatively short distances between schools, parks, residential areas and commercial centers. Most vehicle trips inside the City are less than five miles round trip and could be accomplished on a bicycle because of the city’s layout.

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INTRODUCTION

A bicycle sharing system, also known as bike-sharing, is a service in which bicycles are made available for shared use to individuals who do not own them. Bicycle sharing systems can be divided into two general categories: "Community Bike programs" organized mostly by local community groups or non-profit organizations; and "Smart Bike programs" implemented by government agencies, sometimes in a public-private partnership. The central concept of these systems is to provide free or affordable access to bicycles for short-distance trips in an urban area as an alternative to motorized public transportation or private vehicles, thereby reducing traffic congestion, noise, and air pollution. Bicycle sharing systems have also been cited as a way to solve the "last mile" problem and connect users to public transit networks.

Public bike sharing programs address some of the primary disadvantages to bicycle ownership, including loss from theft or vandalism, lack of parking or storage, and maintenance requirements. However, by limiting the number of places where bicycles can be rented or returned, the service itself essentially becomes a form of public transportation and therefore may be less convenient than owning a bicycle. Government-run bicycle sharing programs can also prove costly to the public unless subsidised by commercial interests, typically in the form of advertising on stations or the bicycles themselves.

Bike sharing systems have undergone changes which can be categorized into three key phases, or generations. These include the first generation, called white bikes (or free bikes); the second generation of coin-deposit systems; and the third generation, or information technology (IT) based systems. Recent technological and operational improvements are also paving the way for a fourth generation, known as the demand-responsive, multimodal system.

As of May 2011 there were around 136 bikesharing programs in 165 cities around the world, made of an estimated fleet of 237,000 bicycles.

Bicycle Station in Hyderabad-HBC

The Wednesday Rides at Necklace Road has become a weekly affair for Hyderabad Bicycling Club (HBC) riders from Hyderabad and Secundrabad. The ride starts at the HBC Bicycle Station on Necklace Road, i.e. Opposite Sanjeevaiah Park at 6 am sharp. The riders ride anti-clockwise all along and around Hussain Sagar. i.e. via Jal vihar, Eat Street, Peoples’ Plaza, NTR Marg, Lumbini Park, AP Tourism Office, Tank Bund and back to the bike station.1

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TOPIC-1

MACRO-MICRO ENVIRONMENT AND COMPETITVE SCENARIO

1.1Macro Environment Analysis : The macro environment refers to all forces that are part of the larger society and affect the micro environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

i. Political & Social Environment: The political situation in Hyderabad is a little unstable because of the Telangana unrest in Andhra Pradesh. Moreover, since Hyderabad is the crown city of Andhra Pradesh, a lot of dispute is heating up whether to include Hyderabad in Telangana or not. Thus, be it any industry, this would be a point of consideration for anyone who is planning to setup business in Hyderabad and would certainly raise questions about the viability of setting up a business in such a volatile environment. But, in case of Bicycling station, the project investment is less than Rs. 2 crores. Moreover, it is has already got the social approval wherein IT professionals are willing to ride bicycles. So, one can safely proceed with the project.

ii. Natural Environment: The increase in the number of automobiles is adding to the traffic congestion and pollution to the city. So, the Greater Hyderabad Municipal Corporation has decided to promote ‘bicycle culture’ in the city to create a safe and healthy environment. It is able to take this initiative with the help of 1800- member in Hyderabad Bicycling Club. This corporation has taken several steps like formation of cycle sheds for maintenance and rentals , development of cycling paths and diversion of traffic in the morning. Thus, it provides an added incentive to setup a cycle station because of the awareness and initiatives taken by government in this area.2

iii. Economic Environment: Economic benefits of cycling are divided into internal and external benefits. Internal Benefits of cycling are better health of riders, employment opportunities for development and maintenance of cycles and cycle-stations, less travel costs. External benefits are reduced costs of other modes of transportation, less congestion on roads, less pollution, less road accidents. Improved mobility and lower user costs contribute to the economic significance of cycling facilities.3

iv. Demographic Environment: Hyderabad stands at 6th position in terms of population and is called the Cyber City of India with more than 1300 reputed companies. And most of the reputed companies are located in the area called Hi-Tech city where the bicycling station is being planned. The employees of the companies who are health conscious and environment friendly shall use the facility of bicycle station by riding rented bicycles. It thus provides an opportunity to capture these young professionals by providing them such service. Also there are fitness enthusiasts and people who want to use cycles for temporary purpose.

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v. Technological Environment: The bicycle station will be developed by Hyderabad Metro Rail and later on maintained by Hyd. Bicycling club. Hence, we can expect state of the art, optimum use of technology and highly user friendly service. The area is already technologically advanced. We can expect the station to be well equipped with all the equipments needed for the maintenance of cycles like air pump, basic tools like screwdrivers, wrenches and tires. Bicycles should be designed for comfort with adjustable seats, chains, gear shifts and brake mechanism completely enclosed and protected and tamper resistant. Radio Frequency Identification (RFID) technology can be used as to monitor bicycles utilization.4

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1.2 Micro Environment Analysis: The Micro Environment factors refer to those forces which are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors and public.

i. The Company: The Bicycle station project/venture has been taken over by three entities ( the trio)- Land has been provided by South Central Railway at MMTS Metro Station at Madhapur; Development and Funding by Hyd. Metro Rail; and maintenance by Hyd. Bicycling Club. The project of cycle station is not only for the promoting bicycling in a big way, but also for encouraging environment friendly commuting. The cycle station will provide two types of cycle, geared and non-geared. To support this move, the trio plans to keep the rental prices affordable.

ii. Suppliers: In this type of venture, it is very important to build customer faith. For eg, there is always a perception in the minds of the people as regards the safety gear, brake functioning etc. Therefore, there is a need to choose such suppliers who can provide the equipments of superior quality and at competitive prices. There are some suppliers from Hyderabad itself who can supply the necessary equipment and gears, such as:

The Bike Affair: They are located at Kondapur and specialize in bi-cycles. They offer a wide range of bi-cycles along with all the safety gear.

Bharat Cycle Stores: They are located at Gowliguda and specialize in manufacturing of bicycles and have dealership in Hyderabad since 1924.

Sri Laxmi Cycle Company: They are located at Shapur Nagar and specialize in Bicycles parts.

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Jupiter Agencies: Jupiter Agencies established in 1998. They are one of the whole sellers of all kinds of bicycles. They have made continuous improvement in the various genuine and trusted quality bicycles to meet the ever increasing market requirements. They specialize making Russian Bicycle. To meet the increasing market requirements they have made continuous improvement in the supply of various genuine and trusted bicycles to satisfy their customer.

Jai Hind Cycle Agency: Jai Hind cycle Agency is located in Gowliguda. It specializes in bicycle spare parts and bicycle. It is the leader in both bicycle and its spare parts. Types of Bicycle they provide- BMX Bike Bicycle, Kids Bicycles, Kids Try Cycles, Ladies Bicycle, and Russian Bicycle.

iii. Publics: Some of the considerations are: Government Publics: This is a government aided project and hence must

follow basic laws related to the project. Rules and Regulations regarding bicycle station must be taken into consideration since the bicycles are meant for the public and to ensure safety is the duty of the company.

General Publics: The bicycling club needs to create awareness about bicycle station in the general public. They need to motivate the people to ride these bicycles and save the environment.

iv. Customers: Customer is the prime focus in the microenvironment. The entire industry is focused on the customers and their needs and wants because in an industry like this, it is absolutely essential to build a relationship of trust with your customers. The target market for this industry is basically the Consumer Market. Working professionals and fitness enthusiasts can be identified as potential clients.

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1.3 Competitive Scenario: This project is a government-aided initiative. The competitive scenario will be visible if this project becomes successful. Right now, the trio will have the first mover advantage as this is the first initiative being taken in Hyderabad. If it is successful, then the private players may start coming in. According to the Porter’s five forces model, the bargaining power of suppliers will be weak initially (unless some other players also start this type of venture elsewhere in Hyderabad), be it in Hyderabad or anywhere else because cycles and its spare parts are easily available. But, availability of substitutes is the biggest competition for the time being. Automobiles like cars, scooters, motorbikes, autos and buses are easily available and people are used to all such facilities. Also some people may have their own bicycles.Another issue is breaking people’s habit and making them ride bicycles. Will they agree to ride it first of all, if yes, then how many? Will they ride in hot summers and rainy season? Will they be motivated to ride despite their hectic schedule lined up for the day in their company? What if they ride it initially for few days and then stop it all together? These are some of the pressing issues which should be on the priority list as these are themselves next to competition, if not equally significant as a competition.

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CONSUMER BEHAVIOUR AND CONSUMER PROFILE

To understand the consumer profile, it is necessary to conduct a primary research. For this, our group members went to Inorbit, Hi Tech City and did ma intercept by asking 31 respondents various questions through the questionnaire [ See Annexure 2]. Also find attached the excel sheet containing the data and the factor analysis run on SAS enterprise. Following is the analysis.

FACTOR ANALYSIS

Correlation Matrix: The correlation matrix gives the initial understanding of the variables that whether any correlation between the variables exists or not. The more the correlation co-efficient, the higher is the relationship between the variables and better it is to derive the conclusion that the factor model is a viable option. Hence, the correlation exists in our model, and, therefore our model can be analyzed further.

KMO’s Statistics: Ideally, overall KMO statistics should be 0.60 or higher to proceed with factor analysis. If it is not, then drop the indicator variables with the lowest individual KMO statistic values, until KMO overall rises above 0.60. But, in case of our research, the value of the KMO is 0.596 or 0.6 approx. which lies between 0.5 and 0.7(generally known as the Mediocre Zone).This signifies that the data that we have collected is relevant for the research.

Communality: The communality measures the percentage of variance in a given variable explained by all the factors jointly and may be interpreted as the reliability of the indicator. When an indicator variable has a low communality, the factor model is not working well for that indicator and possibly it should be removed from the model. But, in our model the communality for each variable ranges from 0.70 to 0.93 which is interpretable , and, therefore relevant for the research.

Eigen Value: Eigen value should be more than 1. Therefore, in our model, we have got only those variables whose Eigen value is more than 1. We can see that 5 factors have been chosen. Among these 5 factors, the first factor would be contributing the maximum information. The second factor will contribute second most important information and so on.

Component Matrix: It is discussed under following two sub-heads.

Factor loadings: The factor loadings, also called component loadings in PCA are the correlation coefficients between the variables (rows) and factors (columns).

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Rotated Component Matrix: The rotated component matrix again gives the same thing but in this table the factors are being rotated orthogonally. We chose to work with rotated component matrix as it increases the magnitude of the loading of the factors. This is essential when two loadings for a factor are close enough and the selection of a factor calls upon for subjectivity, making interpretation difficult. In rotation we have used the varimax rotation.

SCREE PLOT

This chart shows the Eigen values for initial components or factors. It is used to help determine the optimal number of factors or components to retain in the solution. Generally, the factors we want to keep are the ones on the steep slope. The ones on the shallow slope contribute relatively little to the solution, and can be excluded. In this case as we can see they are there are two elbows; therefore, we have taken five factors for our interpretation.

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Rotated Factor Pattern

 Factor

1Factor

2Factor

3Factor

4Factor

5Environment

0.13536

-0.2824

9

-0.1012

4

-0.1142

5

0.83627

Active Role 0.00423

-0.0822

3

0.31223

0.17582

0.82705

Short Distances

0.19844

0.10876

0.79664

0.06908

0.13332

Rented Bicycle

0.70136

0.17991

0.48081

0.33062

-0.0938

7Geared 0.7424

5-

0.51020.0079

90.3025

60.0640

7Ungeared -

0.12819

0.85279

0.29444

0.14844

-0.1888

8Workplace 0.8802 -

0.08303

0.07984

-0.1653

2

0.05092

Fitness 0.04511

0.89748

-0.1020

1

0.19314

-0.1930

5Temporary -

0.01722

-0.2037

0.12443

0.92157

0.00971

Locker 0.20151

-0.1441

6

0.85154

0.21683

0.01433

Atleast 5 0.67827

0.50829

0.37974

-0.1017

3

0.01339

Weekends 0.18172

0.38157

-0.0376

0.86367

0.05619

Not Sure -0.2227

2

-0.7050

2

-0.0264

7

0.38932

0.05798

Comfort Zone

-0.0859

7

-0.1184

8

-0.8380

3

0.19963

-0.0329

6Fear/Safety -

0.61039

-0.2889

8

-0.4309

-0.1245

5

-0.2727

5Shyness -

0.55996

-0.3603

2

-0.5045

-0.2869

9

-0.2918

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FACTORS IDENTIFIED

As per the components identified by the factor analysis, we clubbed the correlated variables under one head. Since the data was less, so we have taken the little wider range to make sense out of it. It helped us relate many other important aspects to them to understand the consumer profile. They are as follows:

Factor 1-Majority of the people want rented geared bikes to go to their workplace for atleast 5 days.

Factor 2-Another category which is next to above category wants to ride cycle for short distance on rent, non geared for fitness purposes, but not clear about no. of days.

Factor 3-Environment conscious people want rented, geared for at least 5 days. Factor 4- Some people want rented geared cycle with Locker facility for temporary use Factor 5- Environment conscious people and they want to play active role in saving the

environment want to ride geared bicycle to their workplace, but not sure whether they will ride for the entire week, but for some days they will ride.

Hence, from the above analysis, we can conclude that the professionals are more enthusiastic and they actively want to participate in conserving the environment. They are mostly young professionals between 25 to 38 years of age (we had asked directly from them). Next comes the fitness enthusiasts followed by temporary users who are not sure for the number of days they will ride the cycle.

LIMITATIONS

-Small sample population

-Respondent’s error: It is often observed that respondents don’t fill questionnaires seriously due to which the analysis results could be skewed.

-Few irrelevant variables clubbed in one factor: It is often possible that due to negligence on the part of the respondents while filling the questionnaire, few unrelated variables show correlation between themselves.

-Lack of availability of Research Material on our topic from databases or other available sources. We could not do Regression Analysis due to difficulty regarding establishing causal relationship among variables, as we are just beginners in the field of research.

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TOPIC-3

TARGET SEGMENTATION AND POSITIONING

As clearly mentioned in the article, our target segment is based on the Psychographic Segmentation, i.e. we are more focussed towards the people working in IT Companies because they themselves are very enthusiastic about cycling to work. It is not only that our focus is directed towards them only, but besides the working IT professionals, our customers also include the people who want to use the cycles for temporary purposes and the people who are very calorie conscious and really want to be fit by health.

3.1Positioning Strategies: The trio, South Central railway, The Hyderabad Metro Rail and Hyderabad Bicycling Club are big names already associated with this project. While framing the positioning strategies, the trio will have to take into account the methods of positioning.

i. Educating the masses: They say, “Rinse, lather and repeat”. In the present case the company should think of ways to motivate the customers to ride cycle, such as,

“Ride a cycle-Be environment friendly and stay healthy” “Save the environment, save yourself” “Multiple uses of cycling- health promotion, environment safety and CSR” “Go from Cyber City to Cyber Village by cycling” “Bicycling is in” “Hi tech bicycles for Hi tech residents”

The citizens residing in and around Madhapur will have to be made aware and continuously reminded that bicycling is one of the initiative to reduce pollution- air as well as noise. This can be done through seminars in different companies; regional TV ads; documentaries on environment conservation, harmful effects of pollution on health etc; newspaper ads and articles; brochures etc.

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ii. Providing ample parking space: A Bicycle Racks will provide employees, students, families, business patrons etc. access to ample bicycle parking at MMTS Station which will be embedded within the city framework. This will help the customers differentiate this kind of service apart from the earlier ones where cycle stand services are really bad.

iii. Establishing an efficient Bicycle System: A Bicycle network will send a clear message to the bicyclists and motorists that some of the road space will be used for bicycle tracks. Hence, separate bicycle tracks will make the Bicycling more efficient and safe.

iv. Create a visible, viable, and safe bicycle system. The changing weather conditions can cause damage to bicycles if there is no sheltered parking offered. Protected parking along with lockers can be provided in easy ways by providing bicycle shelters and placing bike racks in parking structures. Unlike other cycle parking in India which are generally in open areas, MMTS cycle stand will offer sheltered parking services for cycles. This will help consumer change his attitude towards bicycling in a big way.

3.2 Positioning statement-Company and Brand positioning together summed up constitutes a Positioning Statement. They positioning statement could be defined as:

“To the IT professionals, fitness enthusiasts and temporary users, who want to conserve the environment and make Hi-tech city pollution free, the trio offers you the state of the art parking station along with rented, geared and non-geared bicycles to ride through the city and to become a part of CSR initiative”

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TOPIC-4

MARKETING MIX STRATEGY

4.1 7P’s of Marketing of Services

i. Core Product/Service- In this scenario, the core service being offered is the Renting of Geared as well as Non Geared Bicycle which is soon going to come at the Bicycle Station being established at MMTS Station, Madhapur (Hi-Tec City), Hyderabad. Along with this service, we could see bicycle tracks coming up across the city in the coming time for Bicycle Lovers. This is a service which is very high on Experience when measured on the SEC [search, experience, credence] continuum. Although people could definitely examine brochures, or scroll through the websites of HBC and HMR but still, customers will have to have “experience” this service before assessing its attributes such as reliability, ease of use, safety and customer support.Supplementary Services- Supplementary services surrounding the core product are food and beverage services, washrooms and locker facilities. People visiting the Hi-Tech area for a short duration may hire the bicycle on rent and deposit their belongings at the Bicycle Station itself in the lockers, for which they will have to pay some amount (that would be affordable). People can also wait in case of scorching heat during summers and rains In the meantime they can enjoy food at the food stalls.

ii. Price- Services, being all the more intangible, the price becomes an important factor for the actual service consumption to happen, after service awareness and service acknowledgement. The investment of this venture has been projected at Rs. 1.2 crore and the bicycle renting charges would be very nominal and affordable. At the time of renting bi-cycle, considering an initial security deposit would be relevant so as to avoid any type of loss. The repairs and maintenance charges in the form of breakdowns etc. are included in the cost of service itself. Charging could be done on hourly and/or daily basis. Prepaid

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cards can also be given. Besides, the following Pricing Strategies are suggested for the efficient working of this service model:-

Market Penetration Pricing: A low price could be charged initially to build the customers and penetrate into the market. Once a high market share is reached, the high demand for bicycles will result in falling costs for the Station.

Product/Service Line Pricing: Under this, the station can fix the rental amount on the basis of geared vs. non geared bicycle. Moreover, three different rates could be applied depending upon the target segments.

Product Bundle Pricing: The station could probably combine the charge for the Bicycle Rental as well as the Lockers facility and sell the combined service at a reduced cost, which will add to the customers’ loyalty and trust towards the Service Provider. This could also help the station in more selling of service and more utilization of its locker services too.

Discount Pricing: As we have 3 target segments, thus, 3 different pricing structures could be set up for each category. For the working professionals, a monthly package could be offered at an affordable price. For the temporary users, the charge to avail the service could be a bit higher. For fitness enthusiasts and Bicycle Lovers, the membership pricing structure could be developed. Moreover, people who want to come along with their spouse, a more attractive package can be offered.

iii. Place-This is important to evaluate for strategizing on the other 6 P’s. It is clearly known that the Bicycle Station is coming up at MMTS Station at Madhapur. The station is proposed to be constructed on an area of 1300 sq yards. It will be a two-storied station catering to the parking of about 500 bicycles. Moreover, the project is being funded by Hyderabad Metro Rail whereas it will be maintained by Hyderabad Bicycling Club. The area for the station is provided by South Central Railway. Thus, 3 major organizations are in tie up with the process of coming up of this new service. The Bicycle Station could definitely get its tickets sold via internet through the websites of these three organizations so as to utilize the Place Factor in an effective manner.

iv. Promotion- There has to be a fit between the promotion and the positioning. Promotion leads to service (brand) recognition and further establishes a proxy to evaluate quality of services based by potential customers. Thus, the various sources could be used for promoting this new service:-

Hyderabad Metro Rail in partnership with Hyderabad Bicycling Club could conduct rallies in the city generating awareness among the huge masses, about the positive benefits of Bicycling and using an environment friendly means of commutation for short distances and to stay fit.

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The pamphlets could be distributed among leading newspapers across the city targeting huge masses.

Details regarding the service and procedure could be uploaded on websites of HBC and HMR. A separate website for the Bicycle Station needs to be in presence by the end of this year.

Since, IT professionals are very enthusiastic about Bicycling and the area where this station is getting set up is near to the IT hub, brochures defining the service, details regarding the pricing etc could be distributed to IT professionals in various IT companies situated in the Hi-Tech area.

People visiting Shopping Malls could be targeted organizing some events at the Malls.

Initially, to promote the service, bicycle racing competitions can be organized along the Necklace Road so as to attract more people to come in.

v. People- People are crucial in service delivery. The best food may not seem equally palatable if the waitress is in a sour mood. A smile always helps. Intensive training for your human resources on how to handle customers and how to deal with contingencies is crucial for a service’s success. Thus, the extent of the mutual dependence of customer and service provider influences the customer’s perception of the service. Special care should be taken while selecting, training and motivating the service employees.Besides this, it should also be taken care of that the people working at a service organization have both technical skills and good interpersonal skills and work with a positive attitude. The service team includes receptionist, guards, housekeeping staff, restaurant staff, parking staff, service team. The duties and responsibilities for each one of them should be clearly defined.

vi. Process- Processes are important to deliver a quality service. Services being intangible, processes become all the more crucial to ensure standards are met with. Process mapping ensures that service is perceived as being dependable by target segment. Badly designed service processes lead to slow, bureaucratic, and ineffective service delivery, waste of time and a disappointing experience. The process of implementation and co-ordination of such a service is already explained in the Blueprint Framework developed, but at the same time, it is essential to train the front line employees, whose actions and behaviour influence the customer’s opinions of the organization and the actual service provided. Delivering the service process with clarity and avoiding chaos in communication related to the collection of identity proofs of customers & management of the same, allocation/ receipt of bicycles to/ from the customers, proper placement of cycles to easily detect the location of each cycle, proper working of online websites should be taken care of.

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vii. Physical Evidence- Physical evidence affects the customer’s satisfaction. Often, services being intangible, customers depend on other cues to judge the offering. This is where physical evidence plays a part. This includes the parking infrastructure, bicycles with unique identity numbers, servicing tools and equipment like CCTVs, electronic gadgets like identity detecting machines, signboards etc. The stand should be neat and hygienic. Spitting pan, cigarette butts should be avoided and defaulters should be penalized.

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TOPIC-5

BLUE PRINT AND QUALITY FRAMEWORK

1 2 3 4 5

Physical Evidence Entry (Card Swap)Computer Screen

Lockers Waiting Room & RefreshmentScreen(same as in 1)

Bicycle Racks (ground & 1st floor)

Exit

Line of Interaction

Contact Person(visible actions)

Reservation on deskThrough tickets/ Card Recharge/New card

-1 key with customer and 1 with employee (similar to bank lockers)-2 Staff members to assist

-well stocked café-two refreshment staff members

Choose Bicycle (geared or non-geared)Assistance regarding parking of cycle -1 person

Line of visibility

Contact Person(invisible actions)

Check availability of bicycles and updating it on screen

Luggage Keeping

Line of internal 1

Physical InteractionSupport Process/IT

-Online & DeskRegistration System maintenance

-Update information About stock in the kitchen. IT support

Mechanics for repair and maintenance of cycles

Waiting Points and their solutions :

W1- Wait for swiping the card as the no. of people is more and swiping machines are less.

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W1 W2

W3 W4

F1

F3F2

S-1- Service personnel to offer apologies to the customer. Make multiple counters with such facility. W2- Capacity of waiting room over utilisedS-2- For the days when the capacity is over utilized, bring in more contract labour and use chase strategy. Can try to shift the demand over to non -peak hour by offering some discount esp. to fitness enthusiasts.W3- Desk operators are less to serve no. of peopleS-3- Provide adequate and additional training to the personnel to make them more efficient. Hire part time workers.

W4- When assistance staff is not available for choosing the bicycle.S-4- Offer apologies to customer and try to pacify him by offering the other type of cycle available at a discounted rate.

Failure Points and their solutions:F1- Screen show machine not working due to technical problem . Also, Food/Beverages out of stockS-1- Report the problem immediately to the concerned person. Offer apologies to the customer and also give him a tentative time by which your service will be up.Food/ Beverage- Simply offer apologies for the beverages to the customer and try to replenish the inventory as soon as possible. Keep the EOQ by observing demand trends/cycles.

F2- Due to technical problem, website not workingS-2- Report the problem immediately to the concerned person. Offer apologies to the customer and give some alternative option like sending the information through mails, and booking of cycles can be done through phones.

F3- Non availability of mechanic for repairing of cycleS-3- Keep one or two people as support staff and provide them training to deal with this issue.

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TOPIC-6

CUSTOMER COMPLAINT & SERVICE RECOVERY STRATEGY

6.1 Process of Receiving Complaints-

A complaint is any measure of dissatisfaction with your product or service. The following is the process of receiving the complaints.

i. Collection of Data- There will be team members responsible for collecting feedback or complaints online through website and add it to a central database. We will also display satisfaction surveys online and in the MMTS bicycle station waiting room screen, or ask people for their feedback during routine telephone calls. The method or procedure for filing the complaint should be easy for customer to understand and it should be easy for customer to get in touch with the Bicycle club. The complaints could be regarding the non availability of mechanic for repair, screen shows not working properly, less staff available for some time, waiting room capacity is less, refund not given immediately etc.

ii. Take Action- Once the team have the data, use it to take action. Remember, collecting feedback is of no value unless an action or change occurs. Based on analysis of the database, make appropriate investments to prevent issues that result in customer complaints. Look for permanent improvements to response time, cycle time, internal processes related to the complaints, and complaint frequency. There would be a system to rank the complaint on the basis of urgency.

iii. Communicate about the Feedback/Complaint- Once action on above mentioned feedback/complaint is taken, let everyone know what has been done. This will show people that the employees really listened to the issue, and it will ensure that people continue to offer feedback in the future. It can also be important (sometimes) to communicate when employees don't take action. Explain the reasons why it didn't happen.

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iv. Refine the Changes- Here employees would use any additional feedback that they've received as part of the communication step to refine and improve what they do. 

5.2 Service Strategy

Appearance of physical facilities (Bicycle, Food Stall) and personnel (staff) should be up to date and flawless as much as possible.

Willingness to help customers and provide prompt service, such as, if customer doesn’t know how to ride the Bicycle, provide him some training too, also about how to repair minor breakdown of bicycle during travel

The staff should be knowledgeable and have skills to provide service (Bicycle) and should be available during the working hours

The contact personnel should be polite in dealing the customer Keeping the customer well informed in the language they can understand

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ANNEXURES

Annexure1

Flower of Service-Renting of Bicycles at Bicycle Station

i) Information- All the information regarding the Bicycle station, availability of types of Bicycles Fares (rents) for using Bicycle can be provided through the website, calls, SMS, newspaper ads etc.

ii) Consultation- Regarding which type of Bicycle the customer should go for and routes to reach its destinations and special fares for the regular customers.

iii) Order Taking- Booking can be done through phones, internet (website) or ticket office/counter.

iv) Safekeeping- Efficient luggage keeping facilityv) Exceptions- Special request for Bicycle preferences, meals and locker preference based on

type of customer- regular or temporary.vi) Billing- Charges receipt (at the counter) or through online booking.vii) Payment- Cash, Credit Card, Debit Card and Special payment privileges for frequent users of

Bicycles.

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Classification of Service

i. Nature of service act

Nature of service act People Things

Tangible actions

Intangible actions

Possession ProcessingCycle Lockers

Implications:

Partial Physical Presence

(a) The bicycle in the present case will be given on rent. So, when the IT professionals or temporary workers or fitness enthusiast will return the bicycle of MMTS cycle stand after using them the bicycles shall be kept and maintained in that of premises.

(b)Lockers Facility If some people have some luggage/carry bag etc they can keep it safely in the lockers provided by MMTS cycle stand.

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ii. Relationship with customer

Type of relationship between the service organisation and its customersMembership relationship No formal relationship

Nature Of service delivery

Continuous Delivery of service

Discrete Transactions Rentals

Implication:

Transactions are discrete and there is no membership.It can have membership based depending upon the progress of MMTS project.

iii. Customization and judgement in service delivery

Extent to which customer contact personnel exercise judgement in meeting individual customers needs

Extent to which service characteristics are customized

High Low

HighLow

Implication:

Since the MMTS cycle stand would be offering two types of cycle, geared and non-geared, there would be low service customization because only cycles and/or lockers would be given on rent. Initially, the meetings of personnels with the customers would be high due to new service.

iv. Nature of Demand and supply

Extent to which supply is constrained Extent of demand fluctuations over timeWide Narrow

Peak demand can usually be met without a major delayPeak demand regularly exceeds capacity

Implication:

Difficult to define right now.

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v. How is the service delivered

Nature of interaction between customer and service organisation

Availability of service outlets

Single set Multiple set

Customer goes to service organisation Service organisation comes to consumerCustomer and service organisation transact at arms length(mail or electronic communications)

Implication:

Every time the customer will have to go to the station to take the cycle on rent.

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Services Marketing triangle

Company

Internal Marketing External Marketing

Employees Customers

‘

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1. Company - MMTS cycle stand

2. Employees - Hired employees

3. Customers - IT professionals, Fitness Enthusiasts and Temporary users

Internal marketing takes place between company and employees through training and development, performance appraisal and compensating employees.

Interactive marketing takes place between employees and customers that starts from giving bicycle to taking back cycle.

External marketing takes place between company and customers, for example, customer’s luggage from the locker gets stolen, he can lodge a complaint against the company.

Annexure 2

Questionnaire for conducting survey on Cycling at Hi Tech city

5- Strongly agree, 4-Agree, 3-Neither agree nor disagree, 2- Disagree, 1- Strongly disagree

S.N. Particulars 5 4 3 2 11 Significance of environmental conservation in your life2 Would you ride bicycle & play an active role in making Hi-Tech area

pollution free3 Would you like to ride bicycle for short distances instead of automobiles4 Would you like to you use rented bicycles for short distances5 Would you like to use geared bicycle6 Would you like to use non-geared bicycle7 Would you like to ride bicycle from MMTS stand to your work Place8 Would you like to ride bicycle from MMTS stand for fitness purposes9 Would you like to ride bicycle from MMTS stand for temporary work10 Would you like to use locker facility at MMTS stand11 You would use the bicycle for at least 5 days12 You would use the bicycle on weekends only13 You would use the bicycle but not sure when and how often 14 You avoid using bicycle because of comfort zone15 You avoid using bicycle because of fear/safety16 You avoid using bicycle because of shyness/humiliation

Annexure 3

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Time table of trains arrival and departure at MMTS Station- These are the local train timings for MMTS Railway Station at Madhapur. From this, we can predict the number of people turning to the Bicycle Station at different points of times and can accordingly balance the demand and supply for the same.5

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REFERENCES

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1 http://www.meetup.com/HyderabadBicyclingClub/events/60907052/

2 http://www.siasat.com/english/news/kiran-kumar-promoting-tdp-symbol

3 http://www.ibike.org/economics/economic-benefit.htm

4 http://caribbeangreenbikes.com/bike-sharing/

5 http://karthik-openthoughts.blogspot.in/2009/06/travelling-in-mmts-hyderabad.html