Gautrain Management Agency

Quatrain Management Agency Quatrain is Africans first world-class, modern mass rapid transit rail and bus service for Sautéing, a province regarded as the economic heartland of South Africa, which links Johannesburg, Pretoria, and OR Tomato International Airport. It was built to relieve the traffic congestion in the Johannesburg-Pretoria traffic corridor and offer commuters a viable alternative to road transport, as Johannesburg has limited public transport infrastructure.

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The project was completed with the opening on 7 June 2012 of the final section between Roseanne and Johannesburg Park Station which had en delayed by problems with excess water seeping into the tunnel between the two stations. Passenger transport for a country with a relatively low average household income, South Africa has a high rate of car ownership. For every 1000 people, there are 109 cars owned. This compares to 15 per 1000 in Lagos, 50 in Nairobi, and 500 in New York.

Available statistics indicate that 80 per cent of South Africans population is totally dependent on public transport (bus, commuter rail and taxis) for its mobility needs. The high car ownership rate nearness that 32% of commuters travel by private car. 25% travel by minibus taxi, 23% walk, 8% go by bus, ND 6% by train. The remaining 6% travel by other nearness including bicycle and animal drawn vehicles. One of the reasons for the high rate of private car ownership is the poor quality and high cost of public transport.

Public transport has recently been described by the chairperson of the transport portfolio committee in parliament as being in a state of crisis. Train users complain bitterly about overcrowding and security issues, whereas bus users complain about the absence of facilities at bus stops and the infrequency of services at off peak times. Minibus taxi commuters complain about accidents, the UN-airworthiness of vehicles, and the absence of facilities at taxi ranks.

A third of all households spend more than 10% of their monthly income on public transport, and 58% of all workers spend over 10% of their personal income on public transport. Half a million school learners walk for over two hours a day to get to and from school, either because there is no public transport available or because it is too expensive. The commuter train system is operated in six metropolitan regions by state owned Meteoroid. The carries 1,mm paying passengers every week day, and has a 14,7% share of the public passenger market.

It serves 471 stations with 279 train sets and 3290 coaches. 5 Rail is the cheapest form of public transport in most urban areas, but it’s reach is limited. The bus sector, which is largely in private hands, has a 19% share of the public passenger market. There are 15,000 buses in service doing mm passenger trips per annum. The industry employs 34,500 people directly. 16 Most commuter services are subsidized, with subsidies being channeled by provincial governments.

Contracts are currently awarded either through competitive tendering or through negotiated contracts. The competitive tendering system has severely undermined the working conditions of bus workers. The minibus taxi sector (or kombi taxi sector as it is locally known) has grown enormously in the past twenty years at the core of the problem is the persistent struggle over control of this multi-billion rand industry that carries over o so n Trace’s commuters. I mere are auto 1 K mol taxes In operation, most of them owned by small operators.

The sector employs approximately 185,000 workers as drivers, queue marshals and administrators. 17 Government is in the process of attempting to tighten up regulation of the sector by enforcing a permit system and encouraging the scrapping of old vehicles through the disbursement of crapping allowances costing a total of Urban. The taxi sector receives no other direct state subordination. SOOT Analysis Strengths 1 . Government backing – government will fund the project until it is profitable 2.

Strong affiliate – Bombardier is world renowned train and automotive manufacturer 3. Reliable – Always on time, world class operator – Similar trains are already in operation in countries lie the I-J. 4. No Congestion – The Quatrain doesn’t experience any traffic 5. The safest way to travel 6. As well as being particularly safe, rail is environmentally friendlier and less polluting than other modes of transport Weaknesses . Inflexibility of Train Routes 2. Limited couches off train 3. Train runs on electricity 4. Inflexibility of feeder services 5.

The limited parking at stations 6. Cut-off times of the train service Opportunities 1 . Improve Market segment knowledge 2. Increase retention, loyalty advocacy, patronage 3. Create sustainable employment 4. Improve and sustain readership 5. Rail’s relatively small share of the overall transport market presents growth opportunities 6. Rail is likely to be in demand- from commuters, due to the increase in traffic congestion Threats 1 . Organizational structure – Complex organizational structure may result in reassurance 2.

Toll Roads – E-tolling was supposed to give commuters an incentive to choose the train over cars 3. Lack of integration in public transport modes 4. Competition – Meteoroid, Taxis and other bus services 5. Perception of public – The train was labeled “Train of the rich” by Coasts 6. Cable theft [strikes Market Penetration Quatrain will seek to achieve four main objectives: Increase Market Share, Secure dominance, Drive out competition and increase usage by existing customers.

The increasing liberalizing of the transport markets is placing new challenges in the tats of railway transport companies (Quatrain) and railway infrastructure companies (Bombers Consortium): market penetration strategies which will include ten Inter-mall cooperation’s, Understructure quality Ana Understructure construction, investment management, quality of services, customer loyalty, cost control, and the inclusion of environmental factors are all central issues which, in the light of increasing competition, are once again growing in importance.

Increase the market share of service – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion. The passenger market will continue to grow in importance for local railway passenger transport and cost pressures will continue to rise. Here, it is important to achieve competitive advantages in passenger marketing through advances in know-how.

Within the rapid Rail Quatrain is the only player and therefore has no competitor in this space, however the competition comes in other forms of transportation; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the other forms of transportation unattractive for commuters To increase usage by existing customers the Quatrain management can do so by the introduction loyalty schemes, such as offer the frequent users a highly reduced price, free parking at the stations etc.

Make more trains available in the peak hour and also decrease interval times. Market development There are many possible ways of approaching this strategy, for example making a link of the Quatrain to Sweet, as there are million residents in Sweet. This can be done through a partnership with BRB(Area Viva) which already has a large infrastructure in Sweet. Make the service appealing to this market because at the moment the Quatrain is seen as the train for the rich. The people staying in Alexandra working at the airport are unable to use this train as the airport line is highly overpriced.

But although billions in public money have been invested in these world-class public transport projects, it’s the minibus taxi industry, also subsidized through the multimillion-rand taxi recapitulations programmer, that remains the most popular choice for millions of commuters, who say it is cheap, convenient and familiar. Therefore it is important for the Quatrain through different pricing policies to attract different customers or create new market segments which will eventually achieve hat status of the most preferred mode of transport.

Market development is a more risky strategy than market penetration because of the targeting of new markets. Revisiting the time schedule for the train, especially on Thursday and Friday, the Market Segmentation Daily Commuters Older arrears Sautéing Province Ideally Pretoria resident that works in Sandlot or Sweet resident that works in Pretoria Stay in suburbs not accessible to the Quatrain station directly Both car owners and non-owners I nee TLS segment market Tanat ten Precision tonsures will target well De consumers ho are concerned about flexibility, road safely and reliability.

These consumers are known as “therapeutic consumers,” because they purchase services that will be the most effective when it comes to their general well. These consumers “buy and use service for themselves,” Consumers in this target market usually do not care about the price, as long as they are getting the highest quality service. Most consumers in this segment are adults. All these customers experience one thing, Traffic in both directions going to work and going home. On a daily basis these commuter can spend anything from 3-ours on he road daily.

With an increase in petrol prices and strikes in the fuel industry both car owners and non-owners experience an increase in their input cost for transportation in a form of fuel for car owners and taxi fares for non- car owner. The fact that the Quatrain is not directly accessible without the use of a car this makes it unattractive for the car owner as it nearness they still need to drive a long distance to get to the train, also using your own car comes with “flexibility’ , certain comfort and level of safely.

On the same breath the taxi user is reluctant to pay for a taxi to a place where they ill get a feeder service and pay again from that point to the station however there isn’t much flexibility for this customer. Using a taxi comes with its own stressful situations egg. Dealing with rude queue marshals and Taxi drives, there has been a number of incidents where women have been verbally abused for they dress in taxi ranks. Since I have slightly differentiated my target market however I will bring these under one strategy.

Whether you are in a taxi or your own car, you are subjected to the same road risk for example the Pimiento truck and car accident shows us that no one is safe on the road. South African roads are 10 times dangerous than those of the US and I-J. The Quatrain has 0% accident record, everyone wants to be safe and there this is the position that it must promote with a tag line “by not using our buses you are likely to die on your way to the Quatrain station than on the Quatrain. Highlight the easy accessibility of the Quatrain, by showing investments made by management in order to make sure this safe transport mode is made available to the customers. This accessibility can be achieved by using the already existing structures of transport to assist the Quatrain bus feeder system. The use of municipal buses to get to the nearest bus station with a free transfer to the Quatrain bus, the same can be done for BRB, by doing this we can have the customer paying once to get to the Quatrain station.

Highlight the building of the new infrastructure aimed to ease the customers Quatrain experience, we are not selling a transport service but we are offering an experience! Make the Quatrain Affordable; pricing must be last thing on the customer’s mind. However the pricing should not only emphasize only on the ticket, but on the quality of life, the lower stress levels by not being in traffic, the idea hat you don’t need your own car to get to work safely and therefore saving on Installments.

I nee tramline Tares well De Dates on ten principle AT territorially will be highly competitive compared to other modes of public transport. They must be sufficiently price-attractive to create a substantial shift from private car use to public transport. Above the line campaigns will be used to communicate this message, the reason for above the line is that we will not only get to our target market but we will also influence other markets to rethinking about their transportation for example the weekend traveler.

Current Positioning The Quatrain’s brand unlocks the ambition of Sautéing residents and their upwardly mobile aspirations. These people are driven, hungry for success and anxious to get ahead. The Quatrain brand is supported by three core values: Freedom, Pride and Relationships, Proud of South Africans who have the skills and the visionary political leadership needed to build this world-class system, Quatrain has become the symbol off nation’s pride.

The current slogan of “for people on the move” when you picture this crowd it’s the “Rat-Race crowd” you only see high profile people wearing their tailored suits going to investment banks, with corner offices, this slogan has side-lined all the other people that are not necessarily on the rat-race of Sandlot and hence Coasts has referred to the train as the train of the Rich. The Quatrain is always at the centre of political debate which has now overshadowed the main reason why the train was built in the first place, to serve South African and improve their comfort in them traveling to work or to the next town.

The ruling and opposition Party should move away from the using the Quatrain as a point of attacking each other this is not good for the image of the operation. The Quatrain has not made itself visible except for the pricing position that it has put forward, it is likely that the Quatrain most expensive and this is the where the competitors have an advantage as they are cheaper and most flexible. In order to capitalist on the strengths and opportunities and address the weaknesses and threats, the Quatrain needs to become more efficient, integrated, modern and responsive to customer demand.

Building a modern, competitive railway network is indeed a top priority for the Sautéing Government, both for the smooth operation of the Quatrain and for the development of a sustainable transport system Reevaluating the railways is a key goal of the SAC’S transport policy framework. Modernizing the sector — notably through the introduction of new technology — is essential if Quatrain rapid rail is to be able to compete successfully with other modes of transport and on potentially profitable markets: in particular commuter passenger.

Quatrain’s ability to compete with other modes of transport, in particular with road, is crucial Tort I TTS competitiveness. Making rail more customer-relented Is a Log part AT making rail more competitive. In fact, rail already has the big advantage in that it is ore environmentally friendly than other modes of transport, and it is also extremely safe on the whole. At the same time, with a view to ensuring good quality of service and making the railways as user-friendly as possible, the Quatrain is also working to strengthen passenger rights and harmonies safety requirements.

Positioning strategy The main focus of need positioning would be placed on consumers who are concerned about the flexibility of travel, comfort, safely and the reliability of the service. There would be many positive benefits to the company if Quatrain were to position the service as a need product. These benefits would include one, by targeting the segment of consumers who are worried about flexibility of travel, comfort, safely and the reliability of the service. We will be able the product as premium because of technological superiority over the other modes of transport already on the market..

Product differentiation strategy By differentiating a service, it creates a difference that sets certain services apart from other services, and also targets certain market segments. Quatrain will need a service differentiation strategy that will make the travel experience unique from all other transport service already available on the market. The company will also need a strategy that will appease to certain consumer segments. By coming up with this strategy, it in return will cause Quatrain to increase profits and market share.

The main area of this strategy focus should be placed on the customer satisfaction and Customer experience of the Quatrain travel. For example, I suggest Colgate make sure the consumers know that the bristles are of different lengths for a reason, for the reduction of plaque build-up in places such as the gum line and in between the teeth, and that no other toothbrush on the market is designed this way. We suggest that a picture is placed on the toothbrush package showing the different lengths of bristles, and an explanation of what each length is responsible for doing.

Also we suggest that the bristles be different colors representing the different lengths. This way the consumer will be able to differentiate the Precision from all other toothbrushes. We suggest that Colgate-Palmolive package the Precision toothbrush differently than the other toothbrush companies. We think that the toothbrushes’ packaging should be very colorful in order to draw customer attention away from other brushes. The name Precision should also be placed on the packaging in a distinct font. 3. Price/quality differentiation strategy Our main focus here is on the customers.

We want them to be able to get the most for their money. By producing a superior toothbrush, that offers more qualities than the other toothbrushes available on the market, at or around the same price as the competition, consumers will hopefully want to purchase the Precision toothbrush over ten toners. I mere well De more qualities trotter at no extra change. The price of the toothbrush if positioned as a mainstream product will have to be equal to the prices of the other toothbrushes already available on the market.

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