Tài liệu Research application marketing solutions to railway passenger transportation

1 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF TRANSPORT AND COMMUNICATION LE TIEN DUNG RESEARCH APPLICATION MARKETING SOLUTIONS TO RAILWAY PASSENGER TRANSPORTATION MAJOR : TRANSPORT ORGANIZATION AND MANAGERMENT , Code No : 62.84.01.03 SUMMARY OF ECONOMIC DOCTORAL THESIS HANOI - 2014 2 The Thesis is completed at : Hanoi University of Transport and Communication Supervisor : Excellent teacher, professor, Ph.D.Nguyen Huu Ha Review 1: ……………………………………………………… ……………………………………………………… Review 2: ……………………………………………………… ……………………………………………………… Review 3: ……………………………………………………… ……………………………………………………… The Thesis will be presented and approved by the Board of Doctoral Thesis Examination Board Presentation Hall : University of Transport and Communication. At: ….…. Date …. Month……..Year 2014. OPENING The subject’s urgency 3 The railway passenger transportation is comparetating with other services such as road transport, airline ....which have special advantages. Meeting to the demand of passengers on this service and being able to compete with rivals as well has become the biggest challenge for transport enterprises in general and for railways in particular. In order to increase the transport market share as well as the service quality with the limited resources , we need to rerearch and apply marketing services to business of the railway transport enterprises. Marketing solutions researching applied for railway passenger transport is urgent, contains the deep theoretics and practical meaning for the development of railway transportation. Therefore, the Author has chosen the subject “ Rerearching the marketing solutions applied for railway passenger transportation “ The research purpose : This thesis’s purpose is systematization the basic knowledges of marketing, expreriences and practical application of marketing to transport business. Researching the marketing theory and using the marketing solutions to implement the business of railway passenger transportation in Vietnam. Researched target: Rerearching the marketing solutions to assist and make the business of Vietnam railway passenger transportation more effective. Researched scope : As the railway business field is huge, the Author just concentrated in studying the main contents of marketing works in the railway transport services. Establishing the theoretical basis and marketing proposals to renew the railway transport business , improving efficiency and competition of railway transport business in new condition. 4 Science and practical meaning: Although, there are many research fields about organization, business structures of railway transportation, the rereaching the method to apply marketing to railway transport operation is still new field which contains the science and practial meaning. Summary of researched objects: In order to apply the marketing services to control and manage railway passenger transport basically and scientifically, must be set the tasks as following : Abroad marketing research projects We have to base on the marking research projects from abroad. There are many records of marketing research. However, we mainly study the English documents such as [20], [21] ( please find the attached document) - There is not any projects researching of transport marketing field which we should develop. The research projects [20], [21]... and other in Vietnam in foreign languages have just studied of general marketing, not concerned to transport marketing except one book wrote in Russian language [19]. - Internal Marketing research projects Regarding to marketing researches deeply for transport business field , there are several hereinafter projects : 5 + Projects [5] are the first enforces to apply marketing subject to training program of University of Transport Technology. The Projects [3]; [6] with the closed cooperation of railway sector, has considered carefully and implemented marketing in the railway transport business. Investigation methods, reports, information settlement have been perfectly done. The project [18] has specially studied the aspects of operation marketing such as proposal to set up organization, human resources for marketing jobs… A part of this project has been applied practically by Vietnam Railway. However, these above projects have not been uniformed totally about the theoretic and theory of development marketing in the railway sector. The marketing solutions have not been really effective yet. Currently, theory framework to create Mix marketing policy of these above projects - 4P is fossilized. The application of marketing system in passenger transport of railway sector still obtains many unsolved omissions relating the theory aspect. Research methods This Thesis used the synthetic of methods such as : Investigation method, statistic method, analysis method, systematization method, competitive knowledge logical method, social psychology ; appraising specialist method, prediction method, optimization method…to research the current real situation of marketing activities in the railway sector. The thesis’s contributions Systematizing and theoretical concertizing marketing for transport field. Based on the research results, characters of transport services and technical exploitation conditions of railway, this thesis has proposed the new marketing policy, it is 7P + S. This is basic guideline to settle the marketing works concerning to railway transport. 6 Developing the research methodology of passenger’s behavior. Developing a theoretical base for the renewal of the marketing applications into the passenger transportation business in accordance with market. Developing the solutions to apply Marketing to the railway passenger transportation such as : increasing transportation market share. Developing the transport schedule to ascertain the passengers ‘demand. Developing the methods to analysis the customer’s behaviors in using railway transport, setting up the marketing activities in Vietnam Railway General Corporation.. Developing the marketing information system, designing new products for passenger railway transport services, setting up the freight price policy, distributing products, marketing promotion and improving the services for supplying ticket. The thesis’s frame : Opening, Conclusion, Recommendation, The main content of this thesis includes 3 Chapters, 150 pages, 29 sheets, 18 charts 7 CHAPTER 1 OVERVIEW OF VIETNAM RAILWAY CORPORATION RAILWAY PASSENGER TRANSPORTATION 1.1 Summary of Vietnam Railway General Corporation. The Vietnamese Prime Minister has issued the Decision 1883/QDTTg regarding to establishing the Head Corporation – Vietnam Railway Corporation on 13th November 2009. Afterward, on 25th June 2010, The Vietnamese Prime Minister has issued the Decision 973/QD-TTg converting Vietnam Railway Corporation to Company Limited One Member, Owned by State. Head office of Vietnam Railway Corporation locates at No 118, Le Duan Street, Hanoi City. 1.1.1 Current Organization Chart of Vietnam Railway Corporation: BOARD OF MEMBERSHIP SUPERVISORS GENERAL DIRECTORS AND DEPUTY DIRECTORS DEPARTMENTS DEPENDENT ACCOUNTING COMPANIES - Hanoi, Saigon Railway Transport Com - Healthy Railway Centre -Railway Press -Railway Transport Control Centre - UPS Centre INDEPENDENT ACCOUNTING COMPANIES - DiAn Train Co.,Ltd – one member HEAD OFFICE JOINT STOCK COMPANIES - 11 Services and material JSC - 2 Railway Printing JSC - 15 Constructions JSC - 3 Machenic JSC PUBLIC SERVICES INDEPENDENT ACCOUNTING COMPANIES - 15 Railway Management CO.,LTD one member. - 05 Railway Signal Company NONPRODUCTION MANAGING ENTERPRISES - 6 Project managing community - Railway training Center. 8 Chart 1.1: Organization Chart of Vietnam Railway Corporation 1.1.2 The branches of Vietnam Railway Corporation and current status of material and technical foundation. Railway infrastructure Railway length total is 3.141,69 km including 2.632 km main railway, 402,69 km station railway, 107,95 km sub-railway (excluding over 100 km railway managing and exploiting by other enterprise : Lao Cai Apatit Company, Vinacomin) 1.2. Railway passenger transportation This Thesis has recommended aspect of railway passenger transportation. Business result of Railway transportation in Vietnam these years is descripted in hereinafter sheet: Sheet 1.4: Commodities , passengers, luggage transportation No Target 1 2 3 4 5 6 7 Railway passenger (person) Passenger Transport quantity (person.km) Income from passenger transport (1000vnd) Railway Luggage (tons) Luggage Transport quantity (tons . km) Income from luggage transport (1000vnd) Income Total (1000 vnd) 2011 2012 2013 11.981.849 12.217.644 12.129.485 4.571.080.043 4558.960.000 4.416.567.000 2.360.291.957 2.682.723.677 2.921.801.720 87.467 85.439 83.356 62.024.786 64.374.000 61.024.000 61.235.898 64.709.225 70.158.650 2.421.527.855 2.747.426.902 2.991.960.370 (Vietnam Railway Statistical Yearbook) 1.3 Marketing activities in Vietnam Railway Corporation Current status of marketing activities in transport business of railway sector is presented via the factors such as market, product, competitor, product contribution and macro environment. For the Railway sector, 9 neither General Corporation or Station Units does not have separated Marketing department, all departments are appointed to undertake marketing jobs. Almost the railway products are distributed directly By this performance, the customers is hard to purchase, the railways products also have not widely advertised, the price policies have not supported , these reasons reduced the attraction of railway products. Conclusion : Therefore, railway enterprises in our country have operated specially: trading and services. Trading is known as using income from transportation to cover all transport activities without funding from State. Service is known as keeping trains running the routes which are lose, without benefit to guarantee the normal economic circle of society. In this circumstance, railway is the hot topic, requested for reasonable solution to adjust. It is the serious imbalance in the transport demand of passengers annually. 10 CHAPTER 2 THE THEORETICAL BASES APPLICATION MARKETING TO RAILWAY PASSENGER TRANSPORTATION IN VIETNAM RAILWAY 2.1. The conception of marketing , transport marketing. 2.1.1 The conception of marketing In this Thesis we define the meaning of Marketing as : Marketing is science subject specially studying to create popular products and their consumers the most useful for the enterprise and society. 2.1.2 Marketing definition in the transport field. Marketing work is not the sole responsibility of passenger station’s staffs, train operators, is the common task of all officials and employees in the railway transportation sector. 2.1.3 Analysis the fluctuation of transport business environment In order to apply Marketing to transport sector we have to fully understand its production business environment to find out the reasonable measure to enhance the development of production business. The railway transport business environment is controlled by other sectors’ business environment and by inner sector. The conversion mechanism of economic management in Vietnam from the central planning to international integrations has changed the factors relating to railway business field. 2.2. Market research and consumer’s demand of transportation products. 2.2.1. Transport market and its specifications Transport market : Market is the place happened the purchasing of commodities or services, there are many definitions for Market. Transport market’s specification: Transport products don’t have form, dimension, transport manufacturing procedure does not make the new product, just transporting commodities and passengers from this location to other locations. 11 Transport procedure is happened in the large area, among provinces, areas in a country or even international locations The effective factors to transport market. - Factor group includes Society, politic and psychophysiology - Factor group includes macroeconomic management and micromanagement - The micro-management of transport enterprise as following : - Factor group includes natural condition. Analysis the business environment of transport enterprises B1. The macro environment of transport enterprise - People factor: - Economy factor includes: - Natural factor: - Science technology factor: - Politic factor: - Cultural Factor B2. The micro environment of transport enterprise - Customers(passengers): - Competitors: - Supplier - Public : Research the competition of enterprise Price, the differences in product, product quality, supply capacity, well advertising, working performance. Measure and predicate the demand of transport market Demand of transport market consists the transport goods and passengers undertaken by transport means 12 2.2.2. Transport demand in the market The concept concerning to passenger transport demand. The trip: is a travelling according to 1 direction in the preset timeframe between 2 locations, normally 2 different locations in the particular route, basing on the certain transport mean. Travelling demand: is the number of longest trips of people within a period in the research area. Travelling demand by railway: is the total of travelling demand of passengers by railway in a period 2.2.3. The Market share of Passenger Transport. The market share of transport and effective factors The transport market share of any transport means (or transport enterprise) is the scope of transport demand which obtained by that transport mean or enterprise and total of transport demand in the market. The transport market is effected by elements such as scale factor, the character of transport demand, geographic location, natural condition, publication. 2.2.4 The market share of railway transport With the length of rail network which is not too long, around over 2400 km, running through 30 provinces, Vietnam railway is a key role in the passenger transportation of our country. In these years, the market share of railway transport is always reduced by affection of the international integrations market mechanism. 2.2.5.-Overview of the transport sectors and competitions among them Research information to select the transport mean - The competition among enterprises with the similar transport means Research aboutamong the ticket purchasing with the different transport means - The -competition enterprises 2.3 The processing and demand of passengers - BuyTransport the ticket 2.3.1 The transport processing of passengers -Check in and get the luggage receipt The passenger’s processing is implemented as following : - Request for hand caring bags - Demand of relax, shopping in the departure hall - Demand in the transport means - Demand at the arrival hall 13 Chart 2.4. Passenger’s transport processing 2.3.2 Demand of Passengers in transportation: Passenger transportation has been developed in quantity and quality these years. The number of passengers travelling for business trip, study, tours and foreigner has increased. 2.3.3 Passenger’s demand travelling by railway The demand of passenger travelling by railway includes : safety, ontime, fast, convenience, comport and ticket price 2.3.4. Overview the passenger’s psychology. Based on the psychological field , demand creates the motive, when the condition is met, motive will create action. During the acting enclosing the diverse psychological processes which will affect directly to the result of action. 2.3.5. Classification Passenger In order to classify the market, this thesis has proposed the classification passenger as following: The trip’s purpose The request to be served The distance transport The social component The income 14 2.3.6. Investigation the passenger’s opinion Investigation must ensure the science, general summary and detail. After finishing, you must summary the ideas of passengers in accordance with contents: - Research the behaviors of railway passengers - Consider the comfortable level (%) of passenger - The most comfortable thing of passenger - What makes passenger unhappy - what makes passenger strictly reaction - Other matters are not descripted in the poll forms - Organization method to ask for passenger verification 2.4. The specifications of research activities and application Marketing in transport sector Marketing in transport sector is new science subject and related document is almost from abroad, So Marketing research in transport field should be implemented following the certain procedure. This procedure is displayed in hereinafter chart: Reseach specification of oversea economies Research the theory marketing of oversea Research specification environment of airline and railway Developing the theoretical base for marketing activities in Vietnam Raiway Chart 2.5. Research procedure Marketing in Vietnam railway sector . 2.5. Determining the Mix marketing policy for railway passenger transport. Firstly, we consider the passenger transportation is a service and we have some elements creating Mix marketing framework as following : Marketing framework mix 7P with elements approved and used in some marketing researches in transport services as a perfect equipment. However, if we carefully research these above researches we will find that the policies creator has dismissed an important factor which come from the specification of passenger transportation. The difference with other normal business fields the 15 employee to server in the passenger transportation is human. First of all, under the humanism, the employee need to be protected and taken care at the best. While other factors can accept the relativity, safety requirement must be absolutes. This factor is very important affecting to the results of the transport business, because the passengers always consider the safeness is the most important thing to select any transport services. As the safeness is not an independent element in the Mix marketing frame, so the research projects to build the marketing policy usually do not attach special importance to it. Many research projects do not mention to the safeness, or spare writing. In order to make it to be received the attention as it should be, we need to consider it as an important element in the Mix marketing frame. . Price distribution Processing Product Service promotion MIX Marketing frame 7P+ S Safety Material environment Labor supplying services Chart 2.7. Marketing frame- MIX 7P+S Therefore, we should supplement the safety factor in the theoretical marketing policy. We can suggest to apply this theoretical frame to the marketing policies in the passenger transport services as following: 16 The above marketing frame can be 7P + Safety. The factors in that mix marketing frame such as : product, procedure, price, distribution, service promotion, material environment and Labor supplying services. We just clarify the Safety factor. The safety is peaceful status, without dangerousness, without problem happened in the passenger’s trips. The safety includes : Keeping safety for passengers whole their trip. This object is top priority in the design section the transport service products. It is noted that , in the Mix marketing frame, the product policy and safety policy are separated but they directly concern to each other. It’s simple that whenever passengers select any transport service products they always care about its safeness. Ensuring that passengers can be taken care and healthy whole their trips. This period is calculated from departure time to arrival time. The passengers can be received insurance indemnity for any risks happened or for the bad service quality. By these above contents, the research scope of safeness must be included macro policies of safety, the technical specification exploitation process, infrastructure, the railway technical equipment…and other factors relating to railway transport safeness. Addition the safety factor into Mix marketing frame (7P) shall make this factor getting the attention and research of safety in the marketing policies more completed. All the policies ultimately are built to serve people, so we can not make light of this factor role in the marketing policies. 2.6. The principles to select Marketing solution for the transport application - Based on the technical economic bases. 17 - Marketing applications must follow the general regulations concerning to marketing activities issued by the railway sector. - Marketing solutions must be synchronized - Marketing solutions must be practically tested. - Marketing solutions must be verified and adjusted 2.7. The passengers ‘selection of journeys. a/ The options for journey from i location to j location: Firstly, we list all options for journey. The process of interaction between supply and demand had created the option for journey from i to j location. Each option may include one or several of transport means, may directly travel or transit Please prefer to the relative typically options for the journey from Haiphong to Dalat via hereinafter chart. Chart 2.8. Options for journey from Haiphong to Dalat - 1st option : Haiphong - Dalat by car bed , non-stop - 2nd option : Haiphong - Saigon, then Saigon – Dalat by airline - 3rd option : Haiphong - Danang, then Danang –Datlat by airline - 4th option : Haiphong –Hanoi by bus, then Hanoi – Dalat by airline - 5th option : Haiphong – Hanoi by bus, Hanoi – Nhatrang by train, Nhatrang – Dalat by bus - 6th option : Haphong – Hanoi by train, Hanoi- Saigon by train, Saigon – Datlat by bus Sheet 2.4. The journey option’s specification No Specification 1 2 3 4 5 6 Option Option Option Option Option Option 18 ( Datasheet of annual everage ticket price for transport means in 2013). The specifications of these options are bases for the passengers to chose. Each passenger has her/his own view on each option. To know their selletion we must analyis and figure to some different passagers. b/ Analytics the passenger of each journey. Each passenger has her/his own characters which are selfom changed such as healthy, income....however, there are change requirements for each trip/journey , depening on their trip’s purpose. Basing on the selection of passenger which is depened on many factors, we shall descrip the main kinds of passenger as following: Using these 3 criterions for description the passenger’s portraits of the journey from i to j location. - Estimated arrival time : Hard means on time (signal a1) ; Soft means arrival before or after estimated time. (signal a2) - Travelling time : Closed means rush travelling (signal b1); Comfortable means unlitmited time (signal b2) - Expenses ability : Unlimited (signal c1), Limited (signal c2), Difficult ( signal c3) Basing on these above criterions we can indicate the passenger’s portraits in detail : - Group of passengers who need to arrive ontime, need to departure urgently with 3 different financial abilities a1.b1.c1- passenger T1 ; a1.b1.c2 – passenger T2 ; a1.b1.c3 – passenger T3 - Group of passengers who need to arrive ontime but having much free time, with 3 different financial abilities a1. b2. c1 – passenger T4 ; a1. b2. c2 - passenger T5; a1. b2. c3 - passenger T6. - Group of passengers who don’t need to arrive ontime but limited time with 3 different financial abilities a2. b1. c1 - passenger T7 ; a2. b1. c2 - passenger T8; a2. b1. c3 – passenger T9 - Group of passengers who don’t need to arrive ontime and having much free time with 3 different financial abilities a2. b2. c1 passenger T10; a2. b2. c2 - passenger T11; a2. b2. c3 -passenger T12. 19 c/ The passenger’s selection of journey option. With the specifications of options (sheet 3.2) and passenger’s characters, the passenger can sellect the best option basing on these criterions : D1-travelling time ; D2-non-stop/no transit; D3- means’ amenities ; D4 – travelling cost; D5- safety level. Basing on the each option and 5 above criterions each passenger can approbate each options by their own ways. If scoring, , each criterion can get score such as : score 0 means very bad, score 1 means acceptable , score 2 means passable , score 3 mean good. The option with the highest score is priority sellected by the passenger. DTi, j Dj, k (2.1) Inwhich : Dti,j is the score given by passenger i for the option j. Dj, k is the score for the criterion k of the option j. However, different passengers will give different scores for the same option, same criterion. The formular (2.1) creates the 3 visions, are score given to the criterion k of the option j by passenger. With 12 different passengers we can separate into 12 twin visions. The hereinafter sheet is 2 of 12 twin -visions Sheet 2.5 Passenger T1 give scores for options. Option 1 2 3 4 5 6 Criterions’ score D1 D2 0 3 3 3 3 3 2 0 1 1 1 1 D3 0 3 3 1 2 2 D4 3 2 2 2 2 2 Score Total D5 0 2 2 2 2 2 6 13 13 7 8 8 The passengers T1 need to arrive ontime, the limited time, they have money and of cause they approve these 6 options with above scores. So, they will sellect option 2 and 3 Sheet 2.6. Passengers T11 give scores for options. Options 1 Criterions’ score D1 D2 1 3 D3 1 D4 3 D5 0 Score Total 8 20 2 3 4 5 6 3 3 3 3 3 1 1 0 1 1 2 2 2 3 3 1 1 1 2 2 2 2 2 3 3 9 9 8 12 12 The passengers who have much time but their financial ability is limited, they approve these 6 options with different scores, meaning they will sellect option 5 and 6. Analysic to recognize the actions of passengers has the pratical meaning for transport enterprises to set up strategic for investment and trading. 2.8 Developing the methods to measure the passenger’s behavior Research the customer’s behavior is the important job of transport marketing science. To attract more customers, the transport enterprises must understand the customer behaviors and their thinking, to marketing customers use their service. Currently, there is not any theoretical research records which can fully explain why the passenger select this transport means or another for his/her journey. In order to catch the passenger’s actions we have to apply science subjects such as philosophy, sociology, psychology, economic...to create the science bases for customer. The seletion transport services of passengers is not simple, it is affected by many factors. Research and analysis carefully that affected factors is the important responsibility of transport marketing. By the theoretical research and practical using transport services of passengers these years we can descrip the passenger’s behaviors as following: Attractive factors including marketing “black box” passenger’s behavior Passenger’s actions chart 2.9. Chart of passenger’s behavior in selection transport services. The key research is the connection among the attractive objects of marketing and passenger’s actions. This above chart is a black box which covers the relation on the same environment. The marketing