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Transportation is indispensible function of marketing.

Transportation provides the physical means of


carrying goods and persons from one place to another. In other words, it is concerned with carrying the
goods from the places of production to the places of their consumption.

Transportation creates place utility and regularises supply from one place to another. Transportation
greatly facilitates the performance of marketing functions like buying, assembling, selling, storage and
warehousing etc. The entire economy and its development is dependent on a well- knit system of
transportation.

Transportation has contributed much to the development of economic, social, political and cultural
fields and uplifting their condition. Speedy industrialization is impossible without development of
transportation. It is unavoidably necessary to promote transport system for the proper development of
agricultural sector and rural areas. Without development of transportation neither mass production nor
distribution is possible.

1. Physical Supply Of Products

Transportation carries necessary raw materials to factory for production of goods and supplies finished
goods to consumers. It creates place and time utility of goods by transporting from one place to
another. It easily carries finished to the hands of those who need and use them. This significantly
increases aggregate sales of goods. In fact, transport is such a key of marketing, which helps in carrying
goods to the scattered consumers in different places, narrows the gap between producers and
consumers and facilitates to distribute goods to the consumers at minimum cost and time.

2. Specialization

Transportation facility encourages division of labor and specialization on geographical or regional basis.
Transportation cost highly affects localization of industries. Production of goods may center at such
place where the environment is the best and production cost is minimum. This makes maximum
utilization of local resources possible, which is both economically and socially necessary.

Control Of Price Hike

This is one of the important function of the transportation that helps in removing all variations in the
prices of the product. It brings coordination between more supplied areas and scarcely supplied areas of
the country by moving goods from one place to another conveniently and easily.
When sufficient goods are present at different locations customers will be able to purchase goods at low
and stabilizes prices because this will create stiff competition among producers and they will all aim at
mass production of products at cheaper prices.

4. Stabilization In Price

Transportation helps to bring stability in price of different products. It transports goods from more
supplied places to scarcely supplied areas. This establishes coordination between demand and supply,
and brings stability in prices. It helps to supply necessary goods regularly to the consumers. Besides this,
consumers get necessary goods at lower prices, because it encourages competition among producers
and makes mass production at lower cost possible.

Profit Maximisation

Transportation helps in raising the profit of the business by providing cheap raw materials from
different locations and delivering their finished goods to distant customers. There are cheap and
sufficient raw materials available at distant places of the country, through transportation they are
brought to the area of the production and transformed into finished goods.

Help In Mass Production

Transportation helps the businesses in doing large scale production of their products by supplying each
and everything very conveniently without any interruption.

It makes it possible for the business to manufacture and sell their product at a cheaper cost and face the
stiff and tough competition in the market. This way the business is able to serve large number of
customers and overall increase their revenue.

There are various means to carry products from one place to another. Land transport, water transport,
air transport and pipeline transport are the major means of transportation.

Proper means of transportation should be selected according to necessity, the nature of goods, cost,
time for transportation, reliability, capacity, access, security etc. We can classify and describe the
different modes of transportation in the following ways mentioned below:

1. Land Transport System

Land transport is the oldest and more practiced system. The means, which are used to carry people and
goods through land transport are called land transportation. Land transportation is again divided in two
classes as road transport and railway transport.
. Road Transport

Road transport can be classified as transporting either goods and materials or transporting people. The
major advantage of road transport is that it can enable door-to-door delivery of goods and materials
and can provide a very cost-effective means of cartage, loading and unloading. Sometimes road
transport is the only way for carrying goods and people to and from rural areas which are not catered to
by rail, water or air transport. Delivery of goods between cities, towns and small villages is made
possible only through road transport.

ii. Railway Transport

It is used to transport goods and people from one place to another. Development of railway transport
helps much to develop industry, commerce and whole economy of any country. It is very useful in
transporting big and heavy goods and materials. Mostly railway is used in transporting big and heavy
materials such as big machines, coal, food grain, chemicals, automobiles, iron , steel etc.

2. Water Transport System

Water transport is taken as an ancient means of transport, It was developed and used to transport
goods and people from one country to another before the development of air transport. It is also
operated to transport goods from one part to another of any country through big canals, rivers or sea.
Water transport is a system of transporting goods and people from one place to another by ship, boat,
steamer, motorboat etc. through canals, rivers, lake, sea, ocean etc. Water transport is suitable to
transport petroleum products, chemicals, iron, machines, tools, heavy equipment, coal and several
heavy goods.

3. Air Transport System

Air transport is the fastest modern means of transport. Air transport was started after First World War,
especially after 1918. In the beginning until 1960, only passengers, mails, perishable goods and costly
light goods were transported by air transport. But nowadays, air transport system has also become
suitable for other industrial and commercial products.

The importance of air transport has gradually growing. This is the fastest speed means for transporting
passengers and goods to different parts within a country and different countries of the world. Mostly,
flowers of different species, perishable edibles, technical goods, emergency parts and parcels,
equipment, mails and other valuable goods are transported by air transport system.

Thus he marketing mix of the railway industry is

Product: As a service industry product here refers to service. The various services offered by IR are
passenger services freight services, parcel courier services, catering and tourism services, parking lot
services and remaining all other services like cloakroom, restroom, railway kooli etc. Thus the IR
provides vide variety of products for travelling and comforts in travelling and to send couriers from one
place to other postal department uses its freight services to send their freight.

Price: The IR follows price discrimination policy. It offer different prices for different customers
traveling the same distance with some value added service like pre-booking, sleeper class, AC class now
latest introduction Tatkal for which they charge a premium price. Even there are some special quotas
for passengers who get a concession on the price like physically challenged MLA’s MP’s sports persons,
people from some trust etc. This way the IR has formulated a good price policy which brings a great
amount of profit to it.

Place: The place refers to the availability of the firm. The 14,300 trains all over India covers a
distance of almost 3.5 times the distance of moon. The IR have 63,028 KM of track all over India. IR has
7000 stations. All the above shows the availability of Indian railways to every nook and corner of the
country with 17 zones and its divisions. Thus IR has a great strategy in the place i.e. is availability factor.

Promotion: As it is a monopoly market for IR there is no need of promotion. Still it promotes its
brand through social responsibility factors like cleanliness, educational fares on train and promotes the
local monuments printed on trains running through those areas. Price discrimination is the other
promotion policy adopted by IR through various discrimination policy it targets various types of
customers.

For IR there is no need to promote or advertise the changes in it the reason is that the media any way
telecast’s the news about the updates in IR. It also promotes itself through its websites like
www.indianrail.gov.in, www.irctc.co.in, www.trainenquiry.com, www.erail.in. It also provides an app in
android windows and ios for its users for all the information and booking.

People: The people refer to employees, subsidiary employees, customers and general public. IR has
1.55 million employees working for IR in various ways and these people help its passengers in various
ways from ticket booking to travel, safety etc. the subsidiary employees work for betterment of
railways. All these people have a good talk on IR as it is a cheap mode of transport though there is a
criticism that trains run late but on all above people play a good role in the mix of the IR. IR is the only
organization in India which includes almost all the citizens in to one of the mixes people.

Process: The processes of bringing the services to the customers by the IR are very user friendly as
the online system is introduced in ticket booking process the process of getting tickets are minimized
and we can get tickets 24*7. The freight process is also become very easy as IR maintains a separate
office for freight in every station. The manufacturing process and track laying process have never given
any trouble to public. The delivery process is also good as IR has storage rooms and the person can go at
his/her wish for the delivery of freight. All other process which are directly related to customer are
made simpler day by day.

Physical evidence: People need not worry about the physical evidence about the services of
the IR. Its more than 150 years of track record is the greatest evidence as the present generations great
grand fathers also experienced the services of IR. Largest establishment all over India with 700 stations
14,300 trains, 1.55 million employees are also the proof for the good service provided by IR. The tickets
issued for travel and the booking receipts given for freight services are the evidence which assures
customers about the travel. All the above things add to the physical evidence factor of the marketing
mix.

DHL
DHL (Dalsey, Hillblom and Lynn) International GmbH is a German
courier, parcel, and express mail service which is a division of the
German logistics company Deutsche Post DHL
1.It has the leading share of the worldwide air cargo market

2.Network in more than 220 countries and territories and about 275,000
employees worldwide

3.Received position in the magazine’s “World’s Top 50 Cargo Airlines” list

4.More focus on central procurement & E-procurement


5.It gives the most inclusive worldwide freight service in the industry

PRODUCT (slide)
Temperature controlled cargo is just as it sounds. It’s the transport of goods in a
temperature-controlled environment. Think of it like keeping cargo refrigerated, expect
that the vehicle itself moderates the ambient temperature by either heating or cooling
the freight.

Everything from fruits and vegetables to beverages and medications may need to be
shipped as temperature controlled cargo to ensure it arrives in the exact same condition
in which it was shipped.

In shipping practice, an FCL means a single container that is booked by the shipper
exclusively for the transportation of their cargo only. The shipper doesn’t have to share
the container with cargo booked by other shippers. This enhances security and simplifies
logistics.

Full-Container-Load (FCL) rail multi-modal service available with single containers, trailers,
wagon groups and block train movements.

Environmentally friendly, cost efficient & providing reliable and prompt connections within
Europe, and connecting Asia Pacific and Europe – both west and eastbound.

 Standard loading unit: containers, trailers, wagon groups and block trains 

 Service covering Asian origins/destinations in China, Taiwan, Japan, Korea, Vietnam,


to and from Europe

 Highly reliable connections between DHL’s regional networks in Europe and Asia

 Dedicated rail hubs in Europe and China 

 Standardized operation from pick-up to delivery 

 Secure and monitored loading and handling 


 State-of-the-art Track and Trace 

 Efficient handling of transit formalities 

 Regular departures between major business centers 

 Defined and highly reliable door-to-door lead times 

 Excludes dangerous goods

LCL stands for less than a container load.

Since LCL shipments fill less than a full shipping container, they are grouped with other cargo, which is
why they are sometimes called groupage shipments.

Flexible, environmentally friendly Less-than-Container-Load (LCL) rail multi-modal services that


provides/offers reliable and pre-defined scheduled departures. 

Fast, secure & cost efficient transportation, connecting Asia Pacific and Europe – both west and
eastbound.

 Standard loading unit: pallets, cartons or boxes

 Service covering origins/destinations in China and Europe

 Regular departures between major business centers, with connections between DHL’s regional
networks, via dedicated rail hubs in Europe and China

 Standardized operation from pick-up to delivery, with defined and highly reliable door-to-door
lead times 

 Secure and monitored loading and handling

 State-of-the-art Track and Trace

 Efficient handling of transit formalities

 Pick-up and delivery via DHL road networks

 Maximum dimensions per item: 240cm (L) x 220cm (W) x 220cm (H)

 Excludes dangerous goods


PRICE
DHL implements competitive pricing policy in its marketing mix strategy and sets
very comparable prices with that of its competitors. Usually, the price of the DHL
service demanded by the customers, varies in proportion with the distant of the
destination. The customized DHL services are decided by means of premium
pricing, i.e. these services are slightly expensive than other standard services
provided by the company. DHL also engages itself in agreement with its
corporate clients and small businesses in the market to provides its loyal
customers with special discounted prices.
The pricing depends upon a lot of factors including:

PLACE
DHL Express has been on a role and has expanded to some of the countries
where delivery was next to impossible. DHL Express has made it easier for
citizens of a lot of countries to send and receive packages across country and
continents, here are some of the countries DHL expanded to and changed the
way people send and receive packages:……………(slide).
Today DHL Express caters to a global audience and has established headquarters
in varied parts of the world to facilitate easier functioning.
PROMOTION
DHL promotes its services through television advertising along with newspapers,
magazines as well as makes smart use of social media platforms such as
facebook and twitter. To improve its visibility, DHL also sponsors for national and
international events such as Formula 1, and world famous football clubs such as
Manchester United. DHL also promotes itself through campaigns such as Go
Green projecting its services which cause minimum harm to the environment
reducing the carbon emissions. To gain popularity DHL also engages itself with
various government organizations. It is also part of Make in India campaign by
Govt of India.

Ola', the company needs no introduction. The first Indian cab aggregator
company, Ola has made availing cab services a smooth experience. Owned
by ANI Technologies Pvt. Ltd., and formerly known as OlaCabs, Ola was
started in 3rd Dec 2010 by two IIT Bombay graduates Bhavish Agarwal and
Ankit Bhati. Ola serves as an efficient taxi aggregator and bridges the gap
between cab owners and commuters.

Instead of buying and renting out their own cars, Ola partners with a
number of taxi drivers and owners, add a touch of modern technology to
the whole set up, where people could book cars at short notice through
their app. Ola is India’s homegrown ride-hailing app with about 60% market
share (as of 2014) in India with users across 100 cities of India and 15 lakh
driver-partners.

City ride

Auto, shre, micro, macro, prime, sedan, prime play, prime suv, lux, etc

Outstation

Mini, prime sedan, prime play, prime suv, shuttle

Ola money

Get away to cashless world. Hassle free payments for hotels, food, cabs, flights, groceries. Easy, fast n
safe payment.

Ola corporate
This will help companies reduce travel costs and also offer them a centralised paperless billing system.

Corporate customers can hail Ola cabs as and when they require and pay from their company's
centralised pre-paid account, thereby making transport reimbursements redundant.

Ola share

Ola Share lets you save your travel cost by allowing you to share your ride with other Ola users
travelling along your route.

PRICE

At its onset, Ola cabs supported payment via Paytm only but later it included options for both cash and
cashless via Paytm. Passengers are nowadays concerned about convenience rather than prices. Ola Cabs
offer rides in a comfortable setting with furnished and air-conditioned cabs. It offers to price flexibility
with its range of vehicles that includes economic-range, mid-range and high-range. Ola Cabs has
adopted a penetration policy and has kept its price range reasonable so as to gain a competitive
advantage over rival companies. It has also adopted a promotional policy and offers incentives to
increase its customer base.

PLACE

Ola Cabs is a company dealing via an online network. Cabs can be easily reserved through its own
website and via Ola mobile app that can be downloaded from The App Store and Google Play Store. The
company started its operations from metro city Mumbai in Maharashtra but later shifted its base to
Bengaluru in Karnataka. By the year 2014, it had extended its network to include nearly 200,000 cars
that were running in nearly one hundred two tier, three tier and metro cities like Kolkata, New Delhi,
Chennai, Pune, Bhubaneswar, Bengaluru, Hyderabad, Ahmedabad and Mumbai. Ola Cabs has extended
its operations to include auto services and it started from Bangalore and expanded to include places like
Kolkata, Hyderabad, Chennai, Pune, Delhi, Visakhapatnam, Guwahati, Jaipur, Indore and Chandigarh.

PROMOTION

Ola Cabs is a fastest growing company in India related to rental cars because it has a first-mover
advantage over other companies. It has adopted an extensive marketing policy to create high and
positive brand awareness amongst consumers. The company has taken help of every available medium
like digital and print via SMS on mobiles, magazines, newspapers and billboards. It has also used social
media platforms to garner maximum coverage via Twitter, Facebook, Blogs and Instagram. Actress Gul
Panag has been associated with this brand and at a promotional event handed over keys of Ola cab to
its driver. The company offers incentives like free rides, 50% discounted rides, rupees 5o off, first ride
free for new members and promo codes to increase its customer base.

Air India is the flag carrier airline of India, headquartered at New Delhi.[8] It is owned by Air India
Limited, a government-owned enterprise, and operates a fleet of Airbus and Boeing aircraft serving 102
domestic and international destinations.

PRODUCT

Air India is one of the leading airlines in India providing international and domestic travel. Air India
provides only passenger transport services; thus, it is committed to provide the best possible services to
its customers. A look at the marketing mix product strategy is by understanding its services to
customers. Air India passenger fleet primarily consists of aeroplanes from Boeing and Airbus. It also
leases a few of its fleet so as to reduce cost and maintain quality service level. Providing premium club
memberships to its passengers and fly returns programme for frequent passengers enables Air India to
have a high brand recall among other competitors in the airline industry.

PLACE

Air India has its presence in all cities in India. Being the primary choice of airline travel, Air India service
base has been increasing year on year. Air India has flights connecting India with major cities and
business headquarters across the world. Tickets for Air India can be availed from their websites and
other ticket booking agencies. They have also tied up with various agencies to sell their tickets, thus
increasing their service base and capabilities.

PRICE

Air India uses two-part pricing technique so that they are able to gain profits by tapping the buying
capabilities of different segments of people with different earning levels. Quality of service is something
that they do not compromise with, so the basic technique adapted while setting the price is depended
on the length of the journey and the amount of time the travel will take. Premium pricing is primarily
done to target Business class passengers as they have a high tendency to pay and avail premium
services. This gives an overview on the marketing mix pricing strategy of Air India.
PROMOTION

By promoting their tagline “Air India…. Truly Indian”, Air India has leveraged huge gains by being able to
promote their brand. By being integrated with Government of India, it sets up a standard as being a fully
government controlled transport system. Air India has tied up with various travel agencies like
yatra.com, goibibo.com, etc. This has helped them to be easily presentable to their customers, and in
such ways the customers are easily able to avail tickets. Its promotion activities continue in the Indian
Railways website, wherein customers are easily able to avail Air India tickets via the IRCTC portal, thus it
makes easy for the customers to plan journey accordingly and easily. Joint promotion with Amadeus, is
a short term promotional strategy which Air India implements.

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