Marketing Mix Of Indian Railways and 7Ps (Updated 2024)

The Marketing mix of Indian Railways analyses the 7Ps of Indian Railways, which include the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Indian Railways. Indian Railways, as the brand name suggests, deals in railways and is associated with the logistics and transportation industry. It is of Indian origin and is operated and owned by the Government of India via the Ministry of Railways. Indian Railways was founded in 1853, and its first railway track was built by the Great Indian Peninsula Railway. It is ranked seventh worldwide as the largest commercial entity regarding employee count. Some of its competitors are as follows-

• Ships
• Airlines
• Public transport like buses, trucks, and taxi

About Indian Railways

• Type: State-owned railway company
• Industry: Transportation
• Founded: 16 April 1853
• Founders: East India Company
• Headquarters: New Delhi, India
• Area served: India
• Current CEO: Ashwini Lohani
• Number of employees: 1.3 million
• Major products: Passenger and freight transportation

Indian Railways Product Strategy

The product mix of Indian Railways encompasses a diverse range of brands of services and products, primarily focusing on transportation.

The new Product Mix of Indian Railways in 2024 is as follows (Source).

1. Passenger Transportation: Indian Railways offers a wide range of passenger transportation services, catering to different segments: Luxury Trains: Includes trains like the Palace on Wheels and Maharajas’ Express, offering a high-end, luxury travel experience; Long-Distance Trains: Comprises various classes like AC First Class, AC 2-Tier, AC 3-Tier, Sleeper Class, and General Class for long-distance travel; Suburban Rail Services: Operates in major cities like Mumbai, Kolkata, Chennai, and Delhi, facilitating daily commutes; Metro Services: Provide rapid urban transit in cities like Kolkata and Delhi.
2. Freight Services: A primary revenue earner, Indian Railways transports a variety of goods, including: Bulk Commodities: Like coal, iron ore, steel, cement, and fertilizers; Containers: Through dedicated container trains; Specialized Freight: Like automobiles, food grains, and petroleum products.
3. Parcel Services: For transporting more miniature goods and parcels across the country.
4. Catering and Tourism Services: Through its subsidiary, IRCTC (Indian Railway Catering and Tourism Corporation), it offers catering services on trains and railway stations and organizes package tours.
5. Digital Services: Online ticket booking, inquiry services, and mobile applications for passenger-related services.
6. Real Estate and Advertising: Utilizing its vast real estate for commercial use and advertising spaces on stations and trains.

Indian Railways Pricing Strategy

Indian Railways’ pricing and marketing strategy is a sophisticated blend of market dynamics, social responsibility, and strategic segmentation, designed to cater to a vast and diverse customer base while balancing revenue generation and service accessibility:

1. Dynamic Pricing: Adopting airline-style dynamic pricing for certain premium trains, Indian Railways adjusts fares based on demand and seasonality, maximizing revenue during peak periods while offering competitive pricing in off-peak times.
2. Segmented Pricing Structure: The fare structure is meticulously segmented based on train types, classes (AC, Sleeper, General), and distance. This segmentation allows for price differentiation, catering to different income groups and travel needs, from luxury to economy.
3. Subsidized Pricing for Key Segments: Recognizing its role in social welfare, Indian Railways offers subsidized fares for students, senior citizens, and lower-income groups, ensuring affordability and inclusivity in travel.
4. Freight Pricing Strategy: Freight pricing is strategically aligned with market trends and competition, offering differential rates for commodities and bulk transport, thus positioning Indian Railways as a viable option for freight movement across diverse sectors.
5. Premium Pricing for Special Services: Services like luxury tourism trains (e.g., Palace on Wheels) and high-speed trains are priced at a premium, targeting niche markets and generating additional revenue streams.

Indian Railways Place Strategy

Indian Railways has the distinction of being the largest railway network in the world. It 0includes an extensive track of 115,000 km spread over a 67,312 km route and includes 7,112 stations. The first railway track in India was built from Mumbai to Thane in 1853.

Here’s the place strategy of Indian Railways.

1. Extensive Network Coverage: Indian Railways operates one of the world’s largest rail networks, covering remote and rural areas to major cities, ensuring accessibility to various geographic locations across India.
2. Strategic Location of Major Junctions and Terminals: Key cities and industrial hubs are connected through major junctions and terminals, facilitating efficient passenger and freight movement and contributing to regional economic development.
3. Integration with Other Modes of Transport: Indian Railways strategically connects with other modes like airports, metro systems, and bus stations, offering seamless multi-modal transportation solutions.
4. Development of Dedicated Freight Corridors: These corridors are designed explicitly for freight movement, enhancing efficiency and reducing transit times, thereby supporting the industrial and economic growth of the country.
5. Modernization and Upgradation of Key Stations: Focused efforts on modernizing major railway stations with improved amenities and advanced technologies, enhancing passenger experience and operational efficiency.

Indian Railways Promotion Strategy

Promotion is an integral part of any organization, and Indian Railways also uses several mediums for advertisement. It has launched its website that offers related information to interested parties. It is upgraded with the latest news at regular intervals. It has a descriptive and apt tagline, Lifeline of the Nation, as innumerable passengers commute daily in its trains. Indian Railways has earned several accolades, such as the Indian e-Retail Awards 2015. It has launched a loyalty program, Shubh Yatra, to reward its customers and frequent travelers by offering several incentives.

Some Recent Video ads and Print ads for Indian Railways are:

Indian Railways People Strategy

The “People” component of the service marketing mix for Indian Railways encompasses various stakeholders involved in delivering and managing the rail services. This includes employees, customers, and other partners who play a crucial role in the overall experience of the services provided by Indian Railways. Here are some key points related to the “People” aspect of Indian Railways:

1. Diverse Workforce: Indian Railways employs a vast and diverse workforce, including engineers, station masters, ticket collectors, train conductors, maintenance crews, and more. This workforce is crucial for the day-to-day operations and maintenance of the railway services.
2. Training and Development: Continuous training and development programs are conducted to enhance staff’s skills and ensure high-quality service delivery. This includes technical training for operational roles and customer service training for front-line staff.
3. Customer Centricity: Indian Railways focuses on customer satisfaction by providing various channels for feedback and grievance redressal. Efforts to improve passenger experience through courteous and responsive staff are emphasized.
4. Safety and Security Personnel: The safety and security of passengers are paramount. Dedicated Railway Protection Force (RPF) personnel are deployed to secure passengers and railway property. Safety officers ensure adherence to safety protocols and conduct regular checks.
5. Employee Welfare Programs: Indian Railways has various welfare programs for its employees, including health care, housing, education for children, and recreational facilities. These programs aim to keep the workforce motivated and engaged.
6. Customer Interaction and Service Delivery: Front-line employees, such as ticketing clerks, train attendants, and customer service representatives, play a vital role in direct interaction with customers, influencing their travel experience with their service quality.
7. Inclusive Employment Practices: Efforts to ensure inclusive employment practices, including recruitment from various socio-economic backgrounds and special initiatives for employing women and differently-abled individuals.
8. Stakeholder Collaboration: Collaboration with various stakeholders, including government bodies, private partners, and local communities, to enhance service delivery and infrastructure development.
9. Technology and Staff: Integration of technology in service delivery (e.g., online ticket booking, real-time tracking) also requires skilled personnel for development, maintenance, and customer support to ensure a seamless experience for passengers.
10. Leadership and Management: Effective leadership and management practices are crucial for strategic planning, operational efficiency, and addressing challenges in service delivery. This includes high-level decision-makers and middle and lower management involved in daily operations.

Indian Railways Process Strategy

The “Process” component of the service marketing mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Indian Railways, this encompasses the entire spectrum of operations and service delivery processes that facilitate the smooth functioning of one of the world’s largest railway networks. Here are some key points detailing the “Process” aspect of Indian Railways:

1. Ticket Booking and Reservation Process: Indian Railways offers multiple channels for ticket booking, including online platforms (IRCTC website and app), ticket counters at stations, and authorized travel agents. The process includes seat reservation, modification, and cancellation facilities.
2. Boarding and Travel Process: This involves the procedures passengers follow to board trains, including checking the PNR status, locating coaches, and finding seats/berths. Onboard services such as catering, bedding, and housekeeping are part of this process.
3. Freight Services Process: Indian Railways has a streamlined process for booking and transporting goods, including registration, goods booking, tracking, and delivery. Specialized freight services cater to diverse cargo needs, from bulk commodities to containerized cargo.
4. Maintenance and Operations: Regular tracks, trains, and infrastructure maintenance ensures safety and efficiency. This includes daily checks, periodic overhauls, and emergency response mechanisms. Operational processes also cover scheduling, routing, and deploying rolling stock.
5. Customer Service and Grievance Redressal: A structured process for handling customer inquiries, complaints, and feedback through multiple channels, including online portals, helplines, and customer service desks at stations.
6. Safety and Security Procedures: Comprehensive safety protocols for passengers and cargo, including emergency response systems, security checks, and surveillance mechanisms. The Railway Protection Force (RPF) is crucial in implementing these processes.
7. Quality Control and Service Standards: Indian Railways meets specific service quality standards and benchmarks. Regular audits and inspections ensure compliance with safety and service quality norms.
8. Technology Integration in Operations: Use advanced technology in operations and service delivery, such as real-time train tracking, automated signaling systems, and digital platforms for customer engagement and feedback.
9. Environmental and Sustainability Practices: Processes related to environmental protection, including waste management, water conservation, and energy-efficient operations, are integral to Indian Railways’ operations.
10. Staff Training and Development: Continuous training programs for employees to enhance their operational, safety, and customer service skills, ensuring that all processes are executed efficiently and effectively.
11. Stakeholder Coordination: Collaboration with various stakeholders, including government agencies, private sector partners, and local communities, to optimize service delivery and infrastructure development processes.
12. Disaster Management and Recovery: Well-defined disaster management and recovery processes to handle emergencies, including natural disasters, accidents, and other crises, ensuring swift restoration of services and safety of passengers and goods.

Indian Railways Physical Evidence Strategy

The “Physical Evidence” component in the service marketing mix refers to the environment in which the service is delivered, including tangible elements that customers interact with, which help them evaluate the service. For Indian Railways, physical evidence encompasses all the tangible aspects and facilities contributing to the customer experience. Here are some key points related to the physical evidence of Indian Railways:

1. Train Coaches and Interiors: The design, cleanliness, and comfort of train coaches, including seating arrangements, sleeping berths, lighting, and washroom facilities, are direct physical evidence of the service quality.
2. Stations and Platforms: The architecture, cleanliness, layout, and amenities of railway stations and platforms, including waiting rooms, signage, digital display boards, and vendor stalls, contribute to the passengers’ overall experience.
3. Ticket Counters and Self-Service Kiosks: The accessibility and efficiency of ticket counters and self-service kiosks for ticket booking, information, and other services are tangible aspects that impact customer perceptions.
4. Catering and Onboard Services: Quality of food and beverages served onboard or at stations, along with other services like bedding in long-distance trains, provide physical evidence of service standards.
5. Safety and Security Measures: Visible security measures, such as CCTV cameras, security personnel, and safety equipment on trains and stations, reassure passengers about their safety.
6. Information and Communication Systems: Digital display boards, announcements, mobile apps, and websites offer tangible evidence of Indian Railways’ efforts to keep passengers informed and engaged.
7. Branding and Signage: The distinctive logo, color scheme, and uniforms worn by railway staff, along with consistent signage across all touchpoints, help create a recognizable brand image.
8. Cleanliness and Maintenance: The cleanliness of trains, stations, and washrooms, along with the maintenance of tracks and infrastructure, reflect the organization’s commitment to quality and safety.
9. Waiting Areas and Lounges: The quality and comfort of waiting areas, including premium lounges for higher-class passengers, offer physical evidence of the service level and attention to passenger comfort.
10. Accessibility Features: Facilities for differently-abled passengers, such as ramps, special seating, and accessible washrooms, indicate inclusivity and the ability to cater to all passengers’ needs.
11. Luggage Handling and Storage Facilities: Efficient and secure luggage handling services, including cloakrooms and lockers at stations, contribute to the tangible aspects of the service.
12. Environmental Initiatives: Physical evidence of sustainability efforts, such as solar panels at stations, water recycling plants, and eco-friendly measures onboard, reflect Indian Railways’ commitment to environmental responsibility.

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