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Service marketing and Eurail Case ppt
1. Case Study On Eurail Group GIE : Marketing Rail Travel In Europe
2. “There are no such thing as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” -Theodore Levitt
3. What is service? A service is economic activity that creates value and provides benefits for customers at specific times and place. It is a part of the product or full product for which the customer is willing to see value and pay for it.
4. It does not result in ownership. It may or may not be attached with a physical product.
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7. Type of services Depending upon the need of customer services can vary. It could be Personal services- massage parlor, beauty parlor and grooming centers, etc. Business services- courier services, etc. Professional services Health services
8. Cont… International services Youth services Elderly services Community services Directory services Ecosystem services Ancillary services
10. Elements of Services Marketing Mix Product Place Promotion Price People Process Physical Evidence
11. Difference Between Goods and Services Tangibility Quality Transportability Legal and ethical barrier Perishability Consumption Unpredictability of Demand Marketing Mix Creating Value
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13. Managing Service Quality Gap between management perception and consumer expectation Gap between management perception and service quality specification Gap between service quality specification and service delivery Gap between service delivery and external communication Gap between expected service and perceived service
15. Related to Case Customers (Travellers): The customers are the reasons that the travel company exists and for whom the company has designed the travelling and touring package as well as set up the infrastructural facilities and spent money on employee development programmes. Here the providers are the only ones who interact with the customers, like the travel agents interact with the customers and not the company. The agents perform interactive marketing which is on-time, all-time, every-time. This is the most crucial aspect of service marketing in the travel and tourism sector. Those agents have the responsibility of ‘keeping promises’ made and enabled by the company. The providers (agents) are responsible for the perceived quality level of the service transaction. This underlines the uniqueness of service marketing.
16. Contents Introduction Background A Eurail Story The Eurail Experience Eurail Passes Pricing Distribution Eurail Pass Promoting The Eurail Challenges Track Ahead Questions
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18. In 1959, 13 European countries came together & formed an association called Eurail Community
21. Cont... In 1960s rail passengers generally comprise of young Americans, keen on visiting Europe. In 1970s a Youth version of Eurail Pass was introduced as young graduates comprised larger proportion of rail travelers. Introduction of Eurail Youth Pass for passengers under age 26 years – “Backpackers”. In late 1970s and Early 1980s a slight drop in number of American tourists because of rise in US employment rate.
22. Cont... In Early 1990s low tourist arrivals to Europe because of political instability in Eastern Europe. In mid to late – 1990s revival of travel to Europe- “Backpacking” again gained popularity. American students visited on Exchange program which connected far flung villages. In 2001,Eurail community became a “Company” , legal entity registered in Luxembourg and Head Office in Utrecht , The Netherlands. More than 400,000 people used Eurail passes which generated revenue of approximately US$ 169 million.
33. Eurail Passes: Catering to Diverse Needs Introduction of new passes based on changing travelling habits of tourists. Select pass ( 2001). Eurail regional pass (2004). National passes(2006) for nine participating countries (Finland, Greece, Holland, Hungary,Norway,Poland, Romania, Spain and Sweden).
44. Beside free shipping,eurail online customers received a eurailtimetable,eurail traveler’s guide and a eurail network map with every order. Optional FedEx express delivery was also provided. Eurail used a secure technology called “Railkey” to facilitate online purchase.
45. Promoting The Eurail Advertised through authorized sales agencies. Advertised as – “ All of Europe is at your fingertips when you’re a Eurailpass ticket holder”. Rides were stylish ,comfortable, spacious (Take a walk) and efficient. Train meant avoiding the check-in queues and long waits and this allows time for sightseeing. It passed through every corner of Europe including forest, fields, and mountains. Relative Safety of rail travel in comparison to road travel.
46. Cont… Several books were written which helped to promote rail travel some of these were “Eurail Guide , The Eurail by Eurail series”. Promotion of its product offering early bird promotions prizes and prizes for special festivals. The period saw large number of tourist arriving in Europe which resulted in 24% increase in Eurail passengers numbers in 2005. Eurail Selectpass ,allowed unlimited rail travel in 3,4or 5 country combinations, most popular rail pass in 2005.
61. Questions How does promoting travel on a railway network that spans several countries differ from promoting a product ? Does the fact that the Eurail passes are targeted at tourists affect the approach to the market ? What could be the objectives of Eurail’s marketing efforts ? What are the challenges facing Eurail ? In light of the falling cost of air travel in Europe with the advent and growth of low cost airlines, and the impact of increasing fuel prices on the cost of travel by road, does Eurail need to rethink its target markets, and its marketing approach ?
