Amtrak Services Presentation

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    02-Jul-2015
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A services presentation on Amtrak

Transcript of Amtrak Services Presentation

  • 1. Service Marketing Project
    Josh Haber, Michael Piscadlo, Brittany Tomkiewicz

2. Rail Industry Overview
Once the primary form of transportation
1950s-70s
Shift to personal transportation/air travel
1970
U.S. Government creates Amtrak
Present Day
No other major rail passenger line competitors
Tracks mainly owned/used by freight transporters
3. Amtrak Overview
Also known as the National Railroad Passenger Passenger Corporation
Created by Congress in 1970
Began Operations in 1971
19,000 Employees
Own 469 Locomotives/1,519 Passenger Cars
Run Over 300 trains a day
Over 500 stations
21, 000 train route miles in 46 states
Owns 80% of the Northeast Corridor (BostonDC)
Over 26 Million Passengers a Year
Mainly in the Northeast Corridor/West Coast Lines
4. Services Offered
Variety of Routes
Long Distance, Commuter Routes, Regional Routes, High Speed Rail.
High Speed Rail
Acela Express on Northeast Corridor Only
Variety of Seating Options
First Class, Business Class, Sleeper Service, and Coach
Operates 14 long distance routes across the country
Service 23 States
5. Strategic Elements
Positioning
Reputation Issues
Solid market share from the start
Able to obtain a consistent ridership
Only major provider of passenger rail
Never had to put effort into positioning themselves in the consumer mind
Changing times,changing economic situation, changing consumer
Position themselves as the safer, greener, healthier long distance travel option
6. Strategic Elements
Image
Series of ups and downs
More negative in past several years
Slacking timeliness, inflated prices, declining customer service = bad company image
New approach
Connecting America in a safer, healthier, greener way
7. Strategic Elements
Tangible Aspects
Tracks and trains
Train stations
Presentation of employees
Webpage
Ticket
8. Strategic Elements
Target Markets
Serves three specific markets:
Business, leisure, and student travelers
Issue:
Amtrak never attempted or have been able to clearly define their target market(s) and their attributes and needs
Certain aspects of their service targeted towards market segments
Acela Express = business class
Student Advantage Card = college students
Amtraks service can be used by anyone
Allowed ability to market to specific niche go to waste
9. Strategic Elements
Differential Advantage
Compared to Cars
No stress, can have a leisurely journey
Time, can get from Point A to Point B quicker
Risk, car accidents less prevalent than train accidents
Compared to Airlines
Accessibility, more locations to board an Amtrak train
Time, can buy a ticket and board a train within minutes of each other
Location, trains bring you closer to your ultimate destination
Reliability, can run under more severe weather conditions
10. Strategic Elements
Promotional/Advertising Strategy
No promotional mix because of no target market
Promotions offered
Student Advantage Discount Card
Veterans Advantage Discount Card
International Student Identity Card
AAA Membership Card
Large market share from the start, no need for effective advertising
Minimal advertising attempts, advertise at people not to them(Direct Magazine)
Recently with new image (safer, greener, healthier) creating more effective advertisements to showcase their new positioning strategy
11. Prospects for Profitability
Efficiency of Services (short term profitability)
Timeliness
Sharing of tracks with freights
Infrastructure
High speed rail market
Customer Relationship Management
Clearly define target market, better able to tailor services
Direct messaging system
Updated technologies in train stations for retrieval of passenger information
12. Prospects for Profitability
Employees/Employee Communication
Largest expense is employee salaries, wages, benefits
Long Term Profitability
Public Trading
Revenue generated from stock used for funding capital improvements
Hold Amtrak accountable to shareholders
Advertising Strategy
New campaigns highlighting their differential advantages to draw in new customers
New strategy would be expensive, but profitable in long run because it would increase their customer base
13. Competitors
Price
Speed over
distance
Convenience
Environmentally
Sound
14. Competitors
Safe
Speed over
distance
Comfort
Price
15. Pricing Strategy
Non Existent
Attempts to extract as much from passengers as the city-pairs, time of year, and accommodations selected will allow Variety of Seating Options
Tier Pricing
Limited Promotions
No Direct Rail Competitor=No Price Wars
Pressure from non-rail competitors
16. Customer Blueprint
17. SWOT
Strengths
Dominance in the marketplace
Unique service offering
Convenience in locations, local stops
Flexibility in scheduling, numerous trains on the same day
Pricing
Weaknesses
Pricing Strategy
Product Offering
Financial Limitations
Target Market Segmenting
Infrastructure
Bad Image
18. SWOT
Opportunities
USP-Unique Selling Proposition-more destinations, more frequently, more affordable etc.
Pricing Strategy-steep discounts targeted at niche markets
Ridership increases
Federal Funding
Privatization
Threats
Discount Airlines
Discount Busses
Automobile Travel
Private Train Firms
Economic Condition
Federal Funding Loss
19. What do they do well?
Alternative option instead of flying
Eliminate airline taxes, delays, cancellations
Low costs traveling across country
$200 for one way
Improving their services
Wi-Fi, Free Drinks
Making travel easy for short regional distances
Security
Photo ID, Low Profile Target
20. Long Range Outlook
Positive
Federal Funding
Stimulus Package
Improving/New Technology
New Services
Convenience
21. Wise Investment?
Not Publically Traded
Only Major Passenger Rail Service
Federally Backed
New Technologies
Possible Going Public Option?
Increase in Capital
Accountability