Download Marketing Group

Corridor V
Agenda
A) The Cooperation on Corridor V
1. Project Origin
2. Performance Against Goals
Marketing Group
Production Group
Quality Group
B) CER’s Freight Focus Group
Corridor V Project
Agenda
A) The Cooperation on Corridor V
1. Project Origin
2. Performance Against Goals
Marketing Group
Production Group
Quality Group
B) CER’s Freight Focus Group
Corridor V Project
Project Origin
Uncompetitive technical
and commercial
organization
Limited infrastructure
capacities
Unreliable and
uncompetitive transit times
compared to the road
transport
Long border crossing times
Limited availability of
proper wagons and traction
capacities
Project GOALS
Balancing of
transport
mode
Quality of
service
Information to
customers
Competitive transit times
Reliability and punctuality
Availability of traction
capacities
Availability of right wagons
Safety and Security
Continuous flow of
information
CUSTOMERS
CUSTOMERS
SITUATION
Eliminate production and commercial botllenecks
Obtain competitive and profitable transport service
Build transport service with features enabling competitive positioning
Provide regular customer feedback on the Corridor V
Assure regular Q-performance measurement and management
Corridor V Project
Project Structure
STEERING
MARKETING
PRODUCTION
QUALITY
Profit Analysis
Paths & Planning
Customer Care
(Feedback)
Commercialization
Traction
QM ISO 9000
Wagons
Corridor V Project
Agenda
A) The Cooperation on Corridor V
1. Project Origin
2. Performance Against Goals
Marketing Group
Production Group
Quality Group
B) CER’s Freight Focus Group
Corridor V Project
Marketing Group – The Concept
Marketing Group
Elasticity of Demand
Marketing Plan
Cost Analysis
Pricing
Marketing Action
CUSTOMERS
Market Research
Technical Analysis
1.
2.
Prepare elements needed to support actions on the existing and new markets
Launch marketing actions to increase the traffic volume on the Corridor V
Corridor V Project
Growing traffic on Corridor V requires acquisition of new traffic in the
existing markets and the development of new markets
Marketing Group
Kiev,
Moskva

13,4

365,2
Zahony
Bratislava
Györ
Budapest

55,8

17,2

658,3

24,0
Hodoš
Corridor V related
transport flows (I-IX 02)
------------------------------

export I
import I
Venezia
530,8 
2.106,8 

Ljubljana
318,1

249,8

126,3

809,5
in 000 tons
Corridor V Project
Different conditions on existing and new markets
require diversified strategic approach
Marketing Group
Modal Split
of traffic flows to/from Italy
Source: Eurostat, 2000
Rail %
Export Import
-------------------------------------Hungary
11%
54%
Slovakia
2%
41%
Ukraine
2%
0%
Slovenia
16%
19%
100%
27%
90%
Water
17%
Rail
Road
80%
70%
42%
17%
26%
58%
56%
57%
95%
60%
50%
40%
Strategy
-------------------------------------Existing market
Protect
New markets
Build
30%
20%
10%
5%
0%
Hungary
Slovenia
Slovakia
Ukraine
(3,0 mio t)
(3,6 mio t)
(1,2 mio t)
(4,8 mio t)
Corridor V Project
Wood and tiles are the two segments on the Hungarian market that can
be acquired by the rail in a short-term action
Marketing Group
1. Identify original
customers in Hungary
and Italy
in 000 tons
Road Transports
(Hungary – Italy)
220
Import
Export
200
180
2. Gather information on
competitive services and
price
160
3. Build and present the
offer
100
160
172
167
140
120
80
60
40
Increase of the M/S
+10%
20
44
34
142
0
Plastic
materials
Wood and
Wood
cork products sleepers and
other wood
Fuel wood
Bricks and
Tiles
Corridor V Project
Acquisition of goods from Ukraine is a green-field operation that will
require new commercial and production solutions
Marketing Group
1. Identify customers in Italy
and Ukraine
2. Identify and evaluate
potential partners in
Ukraine and Zahony
3. Assess competitive
services and own technical
and commercial
requirements
4. Build and present the offer
in 000 tons
Sea Transports
(Ukraine – Italy)
1.600
Import
Export
1.408
1.400
1.200
1.000
736
800
615
600
402
400
274
232
198
200
Increase of the M/S
+10%
0
Clay
Steel Fuel oils Fertilizers Pig iron
products
Iron
waste
Bauxite
Corridor V Project
Continous improvement of the level of the quality is necessary to
defend and develop the rail market share
Marketing Group
1.Studying Customer Satisfaction’s results it’s possible to estimate the ELASTICITY of
DEMAND in presence of increasing of quality.
2.It has been considered production indexes (“delivery time of trains”) from 1997 to 2000.
3.Two kind of customers have been considered:
1. Customers that in 2000 have had a better index (respect 1997);
2. Customers that in 2000 have had a worse index (respect 1997).
4.The variations 1997-2000 of indexes and revenues of the customers have been:
1997
2000
Revenues
(billions of liras)
1997
2000
Var. %
With a better index
4,39
6,17
293,1
328,2
With a worse index
7,00
5,88
160,4
137,3
Kind of Customer
5.
Delivery time index
+12%
-14,4%
+4% per year
From these results it’s possible to foresee the elasticity of demand:
in presence of a quality service we could have an increase of demand of
3-5
% per year.
Corridor V Project
Marketing Group
Production Group
Corridor V Market Analysis
New Pricing Models
Structure of transportations costs
Balancing RIV
Corridor V Project
Production Group
Production Group
Corridor V Analysis
Border Station Operations
Technical Trust
Transport Planning
Balancing RIV
Corridor V Project
Quality Group
Quality Group
Dealing with the Corridor V as a virtual company
TI
SŽ
MAV
WEST
EAST
TI
SŽ
MAV
Quality Policy
All three companies will strive to increase transport volume to improve the market
position.
By linking the separate segments of the Corridor V, we build a “virtual company”,
with interlinked internal processes.
Our engagement will be to increase the customer satisfaction and to improve the
performance of the companies.
We will endeavor to make customer feel like partners.
We will commit to organize our processes coherently with international standard ISO
9001:2000
Corridor V Project
Quality Group
Quality Group
The plan
Preparation
Organization of work. First technical and market analysis.
Quality parameters to be defined.
Draft of Q-Documents (Quality Policy, Train Control, Codes of Delay, Customer
Satisfaction, Customer Complaints).
Implementation
To organize processes in accordance to standard ISO 9001:2000 national
project teams and responsibilities will be defined. Processes will be identified
and described, and Q-Documentation will be prepared.
Corridor V Project
Agenda
A) The Cooperation on Corridor V
1. Project Origin
2. Performance Against Goals
Marketing Group
Production Group
Quality Group
B) CER’s Freight Focus Group
Corridor V Project
CER’s Freight Focus Group
•CER, in accordance with UE Commission-DG TREN, has identified nine corridors
relevant to international rail freight ;
•The development of « freight performance improvement plans » on the above
mentioned European Freight Corridors appeared as one of the necessary step to
improve international freight flows;
•Among the nine corridors has been
selected three like a priority for the
freight traffic in Europe;
•The Corridor V is one of these three
pilot corridors and the results of the
analysis on it will be presented to the
Commission within June 2003.
Iberian Peninsula - Eastern Europe
Iberian Peninsula - Scandinavia - Czech Republic
Corridor V Project
Rotterdam - Antverpen - Milan via Bettembourg
CER’s Freight Focus Group- Corridor V (Iberian Peninsula-East Europe)
•Multinational task forces have been recruited on each of the first three corridors
selected. They are composed of representatives of RUs, IM and National Authorities of
each of the countries concerned by each corridor.
•The Corridor V is the only connection analysed regarding the East and Mediterranean
European Countries.
Amberieu
LYON
Avignon
Nîmes
Modane
Miramas
Narbonne
MARSEILLE
Cerbére/Port Bou
BARCELONA
MADRID
Alcazar
Tarragona
VALENCIA
Cordoba
Corridor V Project
ALGECIRAS