The RATP Marketing Strategy 2007 - 2010MarketingIsabelle Bachmann - 22 January 2008

Summary

Context of The Paris region Public transport and our market

Global Strategy: our key routes

Our different policies and action plan

Conclusion

Context and our market Marketing Strategy 2007-2010

Context : UrbanizationParis: 2 million Inhabitants; high density populationFirst ring: 4 million Inhabitants; average density populationSecond ring: 5 million Inhabitants; low density population

Context : Mobility and journeys25% of Journeys in Paris and first ring ( stable)33 % of Journeys in the First ring ( increase)42% of Journeys for Second ring (increase)

Context : network area

The Mobility market is competitive:people can choose their mean of transportationContext : a competitive market 67 %29 % 63 %Paris

Penetration rate: 83%7.3 million of Paris region inhabitants used Ratp at least once a yearContext: Our customers

Graph1

3188013.40715

2954232.43932

1167191.93829

Feuil2

7

1Paris

2PC

3GC

4Juniors

5Majors

6Seniors

7Total

Pntration_frquence

Taux de pntration RATP

1 jour15 jour1 mois1 an

200633%49%66%77%

Taux de pntration 1 an RATP

200120022003200420052006

74%76%74%75%77%77%

200120022003200420052006

Frquents36%37%37%37%34%31%

Occasionnels28%27%28%28%30%31%

Exceptionnels10%11%8%10%13%16%

Jamais26%24%26%25%23%23%

Pntration_frquence

0

0

0

0

2006

Taux de pntration par priode en 2006

Mobilit

0

0

0

0

0

0

Evolution du taux de pntration 1 an

0000

0000

0000

0000

0000

0000

Frquents

Occasionnels

Exceptionnels

Jamais

Evolution clientle RATP par frquence d'utilisation

Exclusifs TC439,7404.6%

Parmi les 9,6 millions de franciliens ags de 10ans et plus :Exclusifs VP1,546,50116.1%

Mixtes TC - VP7,575,61078.9%

9,1 millions utilisent la VP au moins une fois dans l'anne soit 95%Non mobiles TC ou VP39,0890.4%

8 millions utilisent les TC au moins une fois dans l'anne soit 83%9,600,940

7,6 millions utilisent la fois la VP et les TC au moins une fois dans l'anne soit 79%

7,3 millions de franciliens used la RATP on one year

Regular3,188,01344%

casual2,954,23240%

rare1,167,19216%

7,309,438

3,2 millions de Franciliens soit 33% se dplacent chaque jour avec au moins un mode RATP

RATP

Taux de pntration33%

Homme46%

Femme54%

Junior34%

Major56%

Senior11%

Paris32%

PC43%

GC25%

Etudiants27%

Actifs55%

Inactifs9%

Retraits8%

Parmi eux, 2 00 000 utilisent le Mtro, 8 60 000 utlisent le RER A ou B, 480 000 utilisent le bus de Paris, 960 000 le bus de banlieue et 145 000 le tramwaypanel 2001panel 2005evolegt 2001-10ans et +evol panel/egtpart de march

voiture11,592,83911,628,145100%14,901,00014,946,38067%

tc8,697,1327,810,31590%6,742,0006,054,54127%

22,3 millions de dplacements mcaniss sont effectus chaque jours en par les franciliens de 10 ans et plusratp7,521,4606,914,57692%5,618,0005,164,70023%

67% de ces dplacements sont faits en utilisant au moins une fois la voiture, 27% avec un mode TC, 23% avec un mode RATP et 10% avec un autre modeAutres409,6071,059,039259%890,0002,301,09610%

Mca20,093,91919,913,70699%22,532,00022,329,920

5,2 millions de dplacements sont ainsi raliss avec au moins un mode RATP. 76% d'entre d'entre eux n'utilisent qu'un seul mode RATP.

Nombre de franciliens utilisant au moins une fois dans l'anne ...

Les Franciliens... la Voiture particulire... les TC... la RATP

9,6 millions9,1 millions8 millions7,3 millions

100%2006/200195%83%76%

RATP

RATP

0

0

0

RATP

0

0

0

0

RATP

Context : Our customers We know that: Our customers are more and more demanding

Our customers are changing

Our future customers are already using RATP

2- What strategy in that kind of Context ?Marketing Strategy 2007-2010

3 mains routes Enhance the Average Revenu Per User

Increase the number of customers

Improve the image and the attribution of our Brand at our company The global strategy

Enhance the Average Revenu Per UserEnhance the average revenu per userAction plan: Continue the loyalty program

- Improve the relationship with our customers: create and customize new services

First Action Plan: Continue our Loyalty program for annual pass holders Enhance the average revenu per userFor the young population : Imagine R (annual pass )

For the commuters : Integrale (annual pass)1.6 million annual customers

Enhance the average revenu per userImagine R Loyalty program Good deals,Special offers with discount, Special events A Dedicated WebsiteAnd the advantages of the year pass:Free journeys on all the zonal fares during week end and vacationsSpecial price

Example: Good deals of Imagine R program: Enhance the average income per user

Enhance the average revenu per userIntgrale Loyalty program Welcome pack,Special offers with rebates , Special events A Dedicated Website

And the advantages of the year pass:Lost insurance, possibility of ajournement , direct debit Special price ( equals 10.3 monthly pass)

Enhance the average income per userExample of special offers for Intgrale holders

Second Action Plan : Improve the relationship with Ratps customers

Create innovative services and products

Cutomized services and relationships

Enhance the average revenu per user

Create innovative services and products

New version of my RATP with me: Mobile InternetCreate a new websiteEnhance the average income per user

Customize services and relationshipRATP ADOPTED A NEW SEGMENTED APPROACH OF ITS RELATIONSHIP MANAGEMENT BASED ON INDIVIDUALIZATION AND ON A BIGGER MOBILIZATION OF ITS FRONT LINE STAFF MEMBERSle comptoir to give assistance + SALES for casual customersLE CLUB for season pass holdersEnhance the average revenu per user

Increase the number of customersIncrease the numbers of customersActions: Target high profil customers (tourists, ederlies )

- Increase the use of Public transport on specific areas

Target high profil customers potential:Increase the number of customers New strategy for the tourits RATP: partnership with the City .It contributes to the attractiveness and the business development of the city

For the Ederlies

Improve services

create dedicated tickets for them Increase the number of customersTarget high profil customers potential

Increase the use of PT on specific areas: local marketingIncrease the number of customers Carry out diagnostics and surveys to know the reasons why we do not perform

Set up local action plans

Eg: Improve Public Transport Information

Improve the image and attribution of our brandImprove the image Action :- create positive attentions with surprises

create positive surprises (break the routine) for our customersCustomer SatisfactionTime Usual Trend Lauching new productscommunicationpositives Surprised attribute at RATPRATP to communicateimprove the image

An Example of a postive surprise: an animation dedicated for our customers

Conclusion of marketing strategy 2007-2010Our new strategy started in 2007 we can not give you the results.But we can say :- the Loyalty program is a real sucess ,- the revenu per user has increased- The boarding committee increased our budget to launch news plans and actions.We have to give the return on Investment for each action.

First of all, I ll speak about Public transport in paris region and then our market which will give you a better understanding on our marketing strategy.

Then, Ill introduce the main axis of our new mkg strategy

After this, Iwill describe our different policies and actions plan , with examples to illustrate the actions.

And to finsh with a conclusion

Paris region, 11 million Inhabitants ; 18 % of the French population. The scond ring holds The fastest growth population of Paris region.

The most important part of Journeys are made in the suburbs ( specially in the second ring ). From suburb to suburb .

The journeys are increasing in the suburbs but they are stable in Paris.

And if we take a quick look at the Public transport network, we get a better idea of why the market share is stable.

Most of the Public transport offer is concentrate in Paris and for journeys from the suburbs to Paris ( or for going to Paris).

There is a big lack in Public transport lack for concentric journeys in suburbs , where the potential of journeys are.

70% of our customers use private car and Public transport .(mixed users)Only 20% of our customers are captive .

The global market share in the Paris region for PT is 29%

But in the city , the market share is higher: it represent 63% for PT 28% for private cars and 6.5% for 2 motorized Wheels .

Some quantitative data about our customers

44% of regular customers ( use nearly every days of the week)40% of casual customers ( use at least 3 times a week)16% of rare customers (use less than 2 times a week)

We focus on regular and casual customersThen, qualitative datas on our market: whow are our customers ?.

For our new strategy, we decided on 3 main Aims First route :2 mains ways .

Annual pass holders790 000 for Imagine R 840 000 for Integrale.What is the Loyalty program for young persons ?

the good deals can only be found on on the website

What is the loyalty program for commuters ?Nearly the same as ImagineR but with specific offers and the advantages of the travel card are different.

The price is not as attractive as we would like . Its more expensive than in other cities such as like Roma .

Example 2 Main ways Mobile internet because more than 90% of our customers owns a mobile; it can create traffic and revenues.

Example: Mobile internet which deliver a lot of information: real time information on traffic, schedules, routes.

We also want to create a new website .3 examples of new outlets which deliver tickets and informationSecond axis or route The city of Paris : 44 million visitors annually; a magnet for tourists.

We consider that what is good for ederlies is good for all our customers.So if we improve the services for them, it will be good for all our customers.

The second way is: there is no special fare for them and we want to increase their uses.

Often, we can see discover that if the population does not use Pt it is because they dont have enough information or they dont understand the network ( because they do not know how to read)

Third axis or route of the strategy

We want to create positvive surprises to break the routine.

Why ?

If we have a look on this customer satisfaction graph, we can see that:

The usual trend of satisfaction level goes down falls with time, If we launch new products or communicate, the satisfaction level goes up ( rises) but it go down again with time.But, if we create postive surprises the satisfaction level doesnt fall with time.

The loyalty program is a success because the number of annual pass holders was multiplied by 3 in 6 years.