CHETANAS BACHELOR MANAGEMENT STUDIES

OF

SUBJECT: Service Sector Management

TOPIC: Indian Railways

Group no.10 1010

UNDER THE GUIDANCE OF: PROF. Hemant kombrabail

GROUP MEMBERS

Sr.no

Name

Roll no

1.

KARTHIK NADAR

3135

2.

MANOJ ABRAHAM

3136

3.

PRAVEEN KUMAR

3144

4.

ABBAS SAYYED

3148

5.

ABHISHEK SHETTY

3149

Introduction:
Indian Railways is an Indian state-owned enterprise, owned and operated by the Government of India through the Ministry of Railways. It is one of the world's largest railway networks comprising 115,000 km (71,000 mi) of track over a route of 65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25 million passengers daily (over 9 billion on an annual basis. In 20112012 Indian Railways had revenues of INR1119848.9 million (US$18 billion) which consists of INR696759.7 million (US$11 billion) from freight and INR286455.2 million (US$4.6 billion) from passengers tickets. Railways were first introduced to India in 1853 from Bombay to Thane. In 1951 the systems were nationalised as one unit, the Indian Railways, becoming one of the largest networks in the world. IR operates both long distance and suburban rail systems on a multigauge network of broad, metre and narrow gauges. It also owns locomotive and coach production facilities at several places in India and are assigned codes identifying their gauge, kind of power and type of operation. Its operation covers twenty four states and three union territories and also provides limited international services to Nepal, Bangladesh and Pakistan. Indian Railways is the world's ninth largest commercial or utility employer, by number of employees, with over 1.4 million employees. As for rolling stock, IR holds over 239,281 Freight Wagons, 59,713 Passenger Coaches and 9,549 Locomotives (43 steam, 5,197 diesel and 4,309 electric locomotives). The trains have a 5 digit numbering system as the Indian Railways runs about 10,000 trains daily. As of 31 March 2013, 23,541 km (14,628 mi) (36%) of the total 65,000 km (40,000 mi) km route length was electrified.[4] Since 1960, almost all electrified sections on IR use 25,000 Volt AC traction through overhead catenary delivery.

Product Offering:
Passenger Services 1. A standard passenger train consists of eighteen coaches, but popular trains can

have 26 coaches or even more. 2. Provision for purchasing tickets via online mode (website of Indian Railway) and offline mode-purchasing tickets from the ticket counter at each station is well set up. Reservation against cancellation service is a provision for shared berth in case the travel ticket is not confirmed. All current passenger service is provided using electric or diesel locomotives. 3. Several long trains are composed of two to three classes of travel, such as a 1st and 2nd classes which have different pricing systems for various amenities. The 1st Class refers to coaches with separate cabins, coaches can or cannot be air-conditioned. 3-tier non- AC coaches and 2nd class seating coaches, which are highly popular among passengers going on shorter journeys. 4. In air-conditioned sleeper classes passengers are provided with sheets, pillows and blankets. Meals and refreshments are provided, to all the passengers of reserved classes, either through the on-board pantry service or through special catering arrangements in trains without pantry car. Unreserved coach passengers have options of purchasing from licensed vendors either on board or on the platform of intermediate stops. 5. The amenities depend on the popularity and length of the route. Lavatories are communal and feature both the Indian style as well as the Western style. Freight Services 1. Indian Railways carries a huge variety of goods such as mineral ores, fertilizers, iron & steel, petrochemicals, agricultural products, etc. 70% of revenue comes from freight services. 2. Freight is a profit making business segment of Indian Railways and is the backbone of railway revenues. But, recently it is seen that the market share of Indian Railways has been consistently shrinking and railways is losing out to road.

Core service Transportation of passengers and goods through rail. Facilitating services Indian Railway introduced the simplest way to check your Railway ticket status using SMS messages. Just send an SMS on 57886 through your mobile phone now to get any information on Railways. Now all the enquiries like Train Alert, PNR Status, Train Status, Seat Availability, Train Schedule, Train Information, Train Time phone through SMS facility. the Indian Railways also launched a new version of Train Enquiry, a site that displays real-time train running information. It enables users to search and find all relevant information about the trains including train time table, live running status and train position, among others. Table, Train Fare, etc. offered on the web site www.indianrail.gov.in are available on your mobile Pantry Car Most of the long distance trains on the India railway system have this facility. The pantry car serves meals, snacks, coffee, tea (chai), and cool drinks. "Room service" is available, where the wait staff brings your order to your seat, although you can go the pantry car and order your meals directly. You will need to pay for what you buy unless you are on one of the 'meals included' Prestige trains. The menu is basically vegetarian, although egg omelets and chicken are also served. In the northeast bound Rajdhani trains even fish is served. Chicken curry and other non-vegetarian dished are available at the stations for about a Rs.70 per person. Prices are slightly higher for food than the local restaurants charge, but the food is pretty decent on an express train.

Supporting service: Some supporting service are given below: Pantry car will be a supporting service if the travelling is of long distance. Train arrival time board Security check Guards Policeman & women

Competition Analysis:
Transportation Industry in India Indian Railways has monopoly in medium-long distance travelling passengers in India. But, when we take whole transport industry, it faces stiff competition by following means of transportation:

Roadways Indian Roadways network carry almost 90% of countrys passenger traffic and 65% of freight. Roadways are widely used for short and medium distances by passengers. But, the quality of the roadways network is subjected to locations. It is not uniformly good or well maintained. Roadways include mainly bus and taxi services for passengers. India had a road network of over 4.42 million Kms. in 2011, making it one of the three largest road networks in the world. India's roads are a mix of modern highways and narrow, unpaved roads. As of 2008, 49 percent - about 2.1 million kilometers - of Indian roads were paved. India has less than 4 kilometers of roads per 1000 people, including all its paved and unpaved roads.

Aviation Air travel has become more affordable but airline services are limited to metro cities in India. It is frequently used for long distance travelling and in cases of limited time of travel. At present, there are 125 airports, including 11 international airports.

Ports Currently, there are 12 major and 187 minor and intermediate ports along its more than 7500 km long coastline. Inland water transportation remains largely undeveloped despite India's 14,000 kilometers of navigable rivers and canals.

7Ps of marketing Product Train

Duronto Express

Description
Non-stop point to point trains connecting metros and major state capitals. Air-conditioned trains linking major cities to New Delhi. There are only a few stops on a Rajdhani route.

Rajdhani Express

Shatabdi Express and Jan These are air-conditioned and non-airconditioned respectively intercity Shatabdi Express Garib Rath trains for day travel. They have only seats and not berths. These trains contain AC three-tier and AC chair car coaches with fares less than the fares for the same classes in other trains. Average speed greater than 55 km (34 mi) per hour. The tickets for these trains have an additional superfast surcharge.

Superfast Express

Express and Mail trains

Most common kind of trains in India. Stops at relatively important intermediate stations. Slow trains that stop at most stations along the route. The trains generally have unreserved seating accommodation but some night trains have sleeper and 3A coaches. These trains operate in urban and suburban areas, usually stop at all

Passenger and Fast Passenger

Suburban trains

stations and have unreserved seating accommodation. Monthly and quarterly tickets for suburban trains are subsidized.

Price
The different pricing strategies are based on the following categories: Consumer groups First Class, second class, sleeper, AC Tatkal reservation

Age based pricing Concession for Senior Citizens Half ticket for children below 7 years

Quantity based pricing Prices for single ticket Prices for monthly pass Prices for quarterly pass Bulk booking discount for seasonal trains

Place

SR. No 1 2 3 4 5 6 7 8 9 10

Name Central East Central East Coast Eastern North Central North Eastern North Western Northeast Frontier Northern South Central

Route KMs 3905 3628 2572 2414 3151 3667 5459 3907 6968 5803

Divisions Mumbai, Bhusawal, Pune, Solapur, Nagpur Danapur, Dhanbad, Mughalsarai, Samastipur, Sonpur Khurda Road, Sambalpur, Visakhapatnam Howrah, Sealdah, Asansol, Malda Allahabad, Agra, Jhansi Izzatnagar, Lucknow, Varanasi Jaipur, Ajmer, Bikaner, Jodhpur Alipurduar, Katihar, Rangia, Lumding, Tinsukia Delhi, Ambala, Firozpur, Lucknow, Moradabad Secunderabad, Hyderabad, Guntakal, Guntur, Nanded, Vijayawada

11 12 13 14 15 16

South East Central South Eastern South Western Southern West Central Western

2447 2631 3177 5098 2965 6182

Bilaspur, Raipur, Nagpur Adra, Chakradharpur, Kharagpur, Ranchi Hubli, Bangalore, Mysore Chennai, Tiruchirappalli, Madurai, Palakkad, Salem, Trivandrum(Thiruvananthapuram) Jabalpur, Bhopal, Kota Mumbai Central, Ratlam, Ahmedabad, Rajkot, Bhavna gar, Vadodara

Promotion
Indian Railways promotes its new services through the website (www.indianrail.gov.in) and banners & hoardings at stations. It also uses advertisements through television. It promotes the launch of various schemes targeting different sections such as tourists, students, daily travelers. Luxury trains such as Palace on Wheel, the Deccan Odyssey, the Fairy Queen etc. have packaged tours over many cities which are becoming very popular today amongst the rich and foreign tourists. Indian Railway Catering and Tourism Corporation (IRCTC) is the subsidiary of Indian railways that handles catering, tourism and online ticket operation in India.

People
People play an important role in the provision of services. The recruitment to the railway cadre is done through the Civil Services Examination. Every year Indian Railway recruits more than 100000 employees in various departments and offices in Railway services at different posts such as junior staff, Upper management, Grade C & D and many others. Recruitment in Indian Railway is performed through four sectors as following: Railway Recruitment Board (RRB) RRB is the self-governed recruitment board of Indian Railway. RRB every year recruits thousands of employees in various Technical and NonTechnical levels such as Eligibility for Inquiry Cum Reservation Clerk Age limit: 18 to 33 years Educational Qualification: Graduation from any Recognised University. Eligibility for Assistant Station Master Age limit: 18 to 33 years Educational Qualification: a University Degree or its Equivalent.

Eligibility for Ticket Collector Age limit: 18 to 30 years Educational Qualification: Matriculation or its Equivalent examination with Min 50% marks. Eligibility for Assistant Loco Pilot Age limit: 18 to 30 years Educational Qualification: Matriculation Pass Plus ITI in Specified Trades/Act Apprenticeship or Diploma in Mechanical/Electrical/Electronics/Automobile Engineering in lieu of ITI.

Railway Headquarter- There are some high grade official recruitment that are performed only by Railway Headquarter. These posts are such as, Grade II/ I Officer Senior Officer/ Manager Railway Police Force Sub-Inspector/ Constables Age limit: Sub Inspector- 20-25 years, Constables- 18-25 years Educational Qualification: Sub-Inspector- 10+2/ Intermediate or Bachelor Degree, Constables- High School equivalent Physical Standard: Height- Min. 165 cm for Male & Min. 157 cm for Female Chest- Min. 80 cm with expansion of 5 cm. UPSC- UPSC is a constitutional recruitment body of Government of India and UPSC conduct recruitment in Indian Railway for various senior post such as Special Class Railway Apprentices Examination Eligibility Criteria Age limit: 17 to 21 years Educational Qualification: The candidate must have passed in the first or second division in the intermediate or an equivalent examination of a recognized university or board with Mathematics and at least one of the subjects Physics and Chemistry as subjects of the examination. Graduates with Mathematics and at least one of the subjects Physics and

Chemistry as their degree subjects may also apply.

SSC- SSC, another major recruiter of India, also conduct some common examinations for recruitment in Indian Railway for lower division posts such as, Stenographer Group C & D ExaminationAge limit: 18 to 27 years Educational Qualification: High School passed or equivalent and Shorthand English/Hindi 80wpm. Investigator ExaminationAge limit: 18 to 26 years. Educational Qualification: Degree in Statistics/ Economics/ Maths or Commerce graduate with Statistics.

Process
The process begins at the time of reservation goes on to the confirmation of seats. For e.g.: Computer reservation system of IRCTC enables any

reservation request from anywhere in the country to be auctioned in minutes. The reservation facility is accessible through all-major computerized reservation system. Direct booking and also passes are available. All these facilities go a long way in increasing passenger convenience. All these procedures form a part of the total process designed to deliver quality service at IRCTC . IRCTC making every effort to constantly redefine service procedures to enhance service satisfaction levels.

Physical evidence
1. Railway has modern looking equipment & infrastructure at stations and trains. 2. Railways Physical Facilities like Lighting, seating and Toilets are OK. 3. Time Tables, Display Boards, etc. are visually appealing. 4. Catering facilities

SERVICE TRIANGLE

INDIAN RAILWAYS Promotion of Luxury trains like palace on Wheel, etc. Internal Marketing External Marketing

291 Training institutes and PREM Website for railway employees

Staff Welfare Plans, Performance based

Service Triangle

Websites and sms services for facilitating services

Employee
Interactive Marketing

Passenger

Pricing based on consumer group, age-based Pricing, intertemporal pricing strategies

Customer care Institute for training

"May I help You" counters

Service market triangle for Indian Railways

Service market involves three kind of marketing that are external marketing, internal marketing and interactive marketing. External marketing 1. Indian government has a monopoly in railway services and because of excess demand, direct marketing to the end users in not required. Although, railways advertisements showing emotional attachment of customers with the trains. 2. Pricing based on consumer groups, inter-temporal pricing, age based pricing and pass services for frequent travelers. 3. Promotion of new schemes targeting different segments such as tourists, students and daily travelers. Luxury trains such as Palace on Wheel, The Deccan Odyssey, and The Fairy Queen etc. are promoted for tourist purposes. 4. They try to maintain the communication with customers through websites (such asirctc.com) and sms services by providing facilitating services for travelling with trains.

Internal Marketing 1. Government of India maintain a website (Indianrailwayemployee.com) devoted only for the employees that provide information for recruitment and selections, welfare measures, retirement benefits and all other necessary information for the employees. 2. There are 291 training institutions in India proving training to railway employees. Railway Staff College is one of the institutes that provide training to newly appointed officers and senior managers and executives. For motivational purposes, railway encourages empowerment of employees through machineries like PREM (Participation of Railway employees in management). 3. This had given and effective and meaningful participation of workers in management process. PREM encourage labor to highlight their views on the Railway working and also suggested measures needed to be taken for improving efficiency on the Railways. Railway also provide Staff welfare plan and performance based rewards for employees.

Interactive marketing 1. Frontline staff comes directly in contact with the passengers. Their unfriendly and discourteous behavior worsens the image of Indian Railways. 2. So Government has started training programs for frontline staff like Assistant Station Master, on board staff viz. catering & Train Examiners, TTEs, RPF etc. and those working enquiry, Reservation, Booking, Parcel Office, Telephone Enquiry, May I Help You counters for improving their interpersonal skills and equip them for dealing with rail customers. Customer Care Institutes in India takes care for frontline staff training.