Marketing Plan

Egyptian National Railway {ENR}Marketing Plan Fall 2014Introduction

History{Great past but trouble some present and a fearful future.}

Historically and internationally we were the second country after UK to have railways. Today from 158 years on the 16th of September 185 Egypt inaugurated the first railway in Africa and in the East.It was during KhediveAbbas Iera. The Railway was from Alexandria toCairo 209 km. Khedive Abbas I whom we rarely remember signed an agreement with EngineerRobert Stephensonto build the railways for 56,000 Pounds in 1850. In 1851 Stephenson had accepted to beEngineer-in-Chief to the Egyptian Railway between Alexandria and Cairo.In 1855 Stephenson inaugurated the first two moveable bridges in Egypt at Kafr Zayat and Benha before finalizing the huge project in 1856. It started at Alexandria to Kafr El Zayat in 1854 then it reached to Cairo in 1856 then to Assuit in 1874 and to Luxor in 1898. The railway from Qena to Aswan was built by a private railway company called Qena Aswan Railway Company. Already in 1884 there was a military railway from Aswan to Sudan which used in the military campaigns in Sudan only. There were several private railways companies in Egypt in the 19th century like the Delta Light Railway Company and the Qena Aswan Railway Company. I think in year 1914 Egyptian State Railway Company owned most of the railways in the country. The Egyptian Railways before the inauguration of the Suez Canal was one of the main sources of income. The Railways in the 20th Century crossed the country reaching to Palestine. The 1948 war put an end for these railways despite I read news that there is a plan to have a railway from Alexandria to Libya. In 1933 the ESR inauguratedits museumabout the history of railways in Egypt. It is beside Cairo Station and it was opened in 1933for the occasion of international railway conference. The museum includes 700 models, documents, maps and statistical data showing evolution of railways beside the Royal Vehicles. It is very important museum but unfortunately the ministries of Culture and tourism do not recognize its importance, already there are some people who are interested in Railways and its history and will be interested in seeing our long history in the railways. {Now the Egyptian State Railways becamethe Egyptian National Railways.}

Services and Products.

Passenger transport, which accounted for 94 percent of the ENRs physical activity and 67 percent of traffic revenue in FY2007, is the railways predominant activity.1. Intercity Passenger Services: Long-distance, high-quality services (in terms of comfort and speed) operate between Cairo and Alexandria (18 pairs of trains per day, some continuing to Marsa-Matrouh), and between Cairo, Luxor and Aswan (twelve pairs of trains). Intercity services offer First and Second class services, all air-conditioned and sleeping services on routes to Aswan. 2. Express Services: Long-distance, lower-quality services that utilize non-air-conditioned coaches and operate at lower speeds. They serve medium- and large-sized cities on routes that are also served by intercity services, and provide services in the Nile Delta, including from Cairo to Damietta, Cairo to Port Said, Cairo to Suez, Alexandria to Damietta, and Alexandria to Port Sai'd.3. Local Services: Although they cover short distances and are of low quality, local services serve an important social dimension by connecting lower-income residents of rural communities with cities and markets. Services are offered on ten routes - nine in the Nile Delta and one in Upper Egypt. 4. Suburban Services: Suburban services are operated by the ENR in the Cairo and Alexandria areas.5. Special Services: ENR also operates special passenger services for the military (almost 90 percent of the services), police, and some factories. This activity is marginal, accounting for only four percent of total seat-km and total passenger revenue.6. Freight Transport Services: Although rail freight transport represents just six percent of ENRs total traffic volume and current rates are very low, freight traffic provided about 18 percent o f revenues in FY2007. The ENR mainly transports mineral resources, including iron ore, phosphate, and clay, coal and coke for the steel industry, petroleum products, and imported wheat and containerized goods across the land-bridge from the Red Sea in the east to the Mediterranean Sea in the north.7. Cairo Underground: Cairo Underground is the first in Africa and the Middle East. Currently there are two working lines, LINE-1 (New El-Marg to Helwan) and LINE-2 (Qalubeya to Mounib). LINE-1 forms the backbone of the Metro network in Cairo as it passes through the most important residential and business districts of the city. The line was formed by connecting the existing railway line from Helwan in the South to the existing railway line in Marg in the North East. The total length of the line is 44 Km including 35 stations. The length of the underground section is 4.5 Km including 5 underground stations. It carries about 1.4 million passengers daily using over 46 trains. LINE-2 extends from Shoubra to El-Monib with a total length of 19 km and 21 stations. Line-2 provides interchanges with Line 1 at Mubarak and Sadat stations. It also provides interchanges with the Egyptian Railways at Shoubra, Mubarak and Giza (Station) Stations. It carries about 0.7 million passengers daily using over 35 trains.8. Bus & ferry servicesENR serves a number of places by bus services includingAbu Simbel(bus/ferry),Sharm el Sheik,Siwa Oasis, andHurghada

ENR annual Income

The authority receives LE300 million in government subsidies to break even, the ever-rising costs of maintaining facilities and equipment and providing service to some two to three million passengers per day have placed a tremendous strain on the authority's resources.The main source of revenue for the Egyptian Railways Authority is transporting passengers and goods. 1. Transporting some 12 million tons of goods annually for LE200 million 2. Transporting passengers are estimated at LE550 million. 3. Other revenues totaling LE90 million come from miscellaneous activities, including the three catering companies which are co-owned by the authority4. As a public-owned utility, the authority is obliged to transport armed forces supplies and equipment, oil, petrochemicals and export cereals at a subsidized rate. 5. Almost 89 per cent of the passengers using the railways are students and civil servants who receive a subsidized service, which normally does not cover expenses. LE600 million of profits could be added annually if the subsidies were removed. Air-conditioned compartments in trains are the only profit- making service. "This accounts for only 11 per cent of the total service provided by the authority While the railways transport only 11 million tons of goods annually, they have the capacity to increase the volume to 40 million tones,

Financial Information

The railway sector sustains losses exceeding LE 1.6 billion each year, due to the small revenue it receives which are not enough to buy the necessary spare parts or improves its facilitiesDuring the 2000-2007 period, ENR generated an accumulated deficit of EGP 6.53 billion (equivalent to US$1.18 billion), almost equivalent to its cumulated gross revenue (EGP 7.24 billion). Its operational deficit totaled EGP 3.91 billion over the same period, and interest totaled EGP 3.83 billion. ENR revenue was not able to finance needed investments in infrastructure and rolling stock, let alone repay investment loans provided by Egypts National Investment Bank (NIB), Egypt Central Bank, and foreign banks, which amount to a total of about EGP 12 billionMarket ShareThe railway sector plays a significant role in the Egyptian economy and is an essential mode of transport for low-income Egyptians. The network, sixty percent of which is concentrated in the Nile Delta and along the Nile Valley, reaches most of the population- even relatively small population centers, which are served by minor lines and small, poor quality trains.The Egyptian rail sector differs from its regional counterparts in several ways. First, its operations are large. Total traffic (passengers and freight) in FY2007 amounted to 68 billion traffic units, which exceeded the combined traffic of railways in Algeria, Iran, Morocco, Tunisia and Turkey. Second, ENR is a predominantly passenger railway, as passenger traffic accounts for more than 90 percent of ENRs physical activity. In contrast, passenger traffic on other railways in the region average between 30 percent and 42 percent.

Mission Statement.

Our mission is providing the best customer experience, being a desired employer, delivering innovative, cost effective and value added services keeping in view the safety aspects.

Vision:

Become the preferred transporter for all passengers in Egypt.Within this vision statement are five elements that serve as core strategic themes for the company:a) Safety and Securityb) Customer Focusc) Connectivityd) Environment and Energye) Financial and Organizational Excellence

SLOGAN:

Because Life Matters

Our Product:

Our Business is about People {we dont move trains, we transport people} while providing a positive guest experience, Customer safety and satisfaction are our highest priorities. Introduce High and value service for all respectful Customers according to the following points.

Save (Time-Money-life-effort)

ENR has multiple opportunities and responsibilities as Egyptians Railroad. The company is in a unique position to provide an important service to travelers in Egypt by offering an option that contributes to a national, integrated transportation system. Doing so also brings about the opportunity to reduce the nations energy consumption, spark economic growth, reduce environmental impact from transportation and provide employees with rewarding employment and the means to provide for their families. ENR recognizes that its service to the nations traveling public must be balanced by financial performance and that it must continually improve its bottom line and service.

Corporate Objectives:

Supporting business and economic growth An improved environmental outcome Supporting and connecting people and communities Maintaining and improving the value for money and financial Sustainability of the rail industry.

It is proposed to achieve the mentioned our corporate objectives through out three main points as follow:1-Maximizing Profit

Financial and Organizational Excellence: Attain a standard of organizational excellence by aligning our products, services, processes and culture with stakeholder expectations to improve financial performance and overall business results to increase our Growth profit by 40% by the end of next 3 yearsBy looking in new market opportunities and potential cost savings: Increasing income by segment a new cluster Business men Commitment contracts with international companies allocated in Egypt and their employees always using Transportation Very strict ticketing system Identify and invest in systems and technologies that will simultaneously reduce energy usage and operating expenses. Station Planning: Stations are one of ENRs largest and most important assets, serving as ENRs front door to the traveling public. In addition to improvements to stations to meet Excellence, ENR will create greater accountability and focus on station operations and development. Station performance through engagement with local partners and the private sector to increase revenues at stations.

2 - Customer Focus:

Advance customer service quality by responding to the wants, needs and expectations of our customers in order to improve their experience and maximize passenger and partner satisfaction. Will integrate these Operating functions and establish manager and employee accountability. Doing so will improve communication and problem-solving in the field, thereby improving on-time performance and customer satisfaction. Safety and Security: Become safest, most secure railroad by creating a collaborative, Team oriented workplace culture that minimizes risks and maximizes passenger and employee safety.

3 - ENR Growth

a) CITIZEN LEVEL

Encourage traveling economically, safely all over the country. Raising the number of Trains to cover all passengers Raising the number of train classification (VIP Fast Sleep Club First class second class Economy, etc) Quality control standard for all trains (no train move from the garage without total check) Reducing the accidents to be Zero (All barriers will be bridges not flat barriers) Extend the Rail network to all remote area

b) TOURISTIC LEVEL

Network between touristy cities (Cairo, Alexandria, Matrouh, Hurghada, Sham El Sheikh, Arish, Seawa, Luxor and Aswan).

c) INDUSTRIAL LEVEL

Containers for transport of raw materials (phosphate, manganese, and cement, etc..)To industrial Zones Transporting Marble and Granite in & out of industrial zones

d) AGRICULTURAL LEVEL

Connecting Toshkey to encourage youth to reclaim, Investors to invest and products to export.

Marketing Assumptions:

a) We assume that cost of Fuel will change in next 3 years due to Diesel lack and Government not supporting.

b) We assume if the Super Jet Company designed a new VIP Class with cheaper price.

c) We assume that Airlines make more offers to be cheap

d) Political strikes and public strikes

Market Research:

A questionnaire of 11 questions has been conducted for a sample of 40 persons with different geographic, environment and social circumstances in order to have a clear view of customers' requirements, the findings were as follows;1. People often travel by train.2. The majority travel with business association/ friends or relatives.3. They believe that abroad, the service offered by the railways is extremely better that the one offered here.4. For passengers safety in travelling is extremely important.5. Currently, ENR safety is fair and it's just offering its service.6. People would definitely pay more in a ticket if new services have been added.7. People in the age category "26 35" usually travels.8. They see that the current price of train ticket is cheap.9. During the stoppage of ENR operation they travel using the Super-Jet, but it hasn't gave the level of safety they desire.Market Research Analysis:

1. Do you often travel by train?

2. With whom do you travel usually?

3. From your point of view or a practical experience, generally in abroad the railway offers better services?

4. Safety in travelling by train to me is?

5. Egypt Railway safety is?

6. Egypt Railway?

7. If a WIFI service is available in return to an increase in the ticket price, I would

8. What's your age category?

9. How do you see the current pricing of ENR tickets comparing to other ways of transportation?

10. During the period that ENR has stopped operating, which mean of transportation have you used?

11. Do you believe that it gave you the level of safe you desire?

SWOT Matrix Analysis

Helpfulto achieving the objectiveHarmfulto achieving the objective

Internal origin(attributes of the system)Strengths1- Historical2- Safety3- loyal passenger4- No traffic problems5- Low energy6- Environment friend7- Extensive network8- Distribution (Stations everywhere)9- Single player without direct competitor10- Centered stationsWeaknesses1. Instability of managements2. High cost investment3. Ticketing system4. Time consuming5. Lack of customer service6. Lack in emergency plan7. Unsatisfied employees8. Bad maintenance plan

External origin(attributes of the environment)Opportunities1. New places to invade2. Long term plan and policy3. New customers to take4. Expand new market around new lines5. Stations investment6. Ads on trains make new revenue7. Population growth8. Agriculture, industrial and touristic lines and placesThreats1. Workers strike2. Public strike3. Passengers attitude4. Discount Busses & Airlines fees5. Economic Conditions6. Fuel Price Increase7. High number of accidents impact

Situation Analysis { PESTLE }

This part focuses on determeing the external enviroment variables that affect on transporting industry in egypt applying PESTLE analaysis { Political, Economic, socail Technological, enviromental and legal analysis } as mentioned below;

IssueImpact on Business

Political

Unsecure conditions

Unemployment rate

Employment Laws

regulation of the public transport sector

Government subsidization

Non dependent organization

Due to unsecure conditions by travelling by private car or on highway it give us a high potential chance to increase our sales

increasing in unemployment give us high potential to choose from qualified employees

as a govern employees its very difficult to fire or hire easy

regulation of the public transport sector presents many limitations in case of misuse or cutting the railroads

Low services

Any change in government will affect the policy and regulations+ve

+ve

-ve

-ve

-ve

Economic

Petrol prices (car Fuel)

Diesel Prices

disposable income

Wage legislation - minimum wage and overtime

Skill level of workforce

Economic growth rate

Exchange Rate

have on average been increasing possible positive impact on the public transport industry

have on average been increasing possible negative impact on the public transport industry

Increase in the average disposable income of both families and individuals indicates that more people can afford to buy and use a private car

Worker strikes to increase their salaries which will affect negatively on our cost

In Egypt workforce there is a well-trained people we can use in our company

Is very low which will affect negatively in our sales

It give us a good opportunity to increase our sales for touristic level+ve.

-ve.

-ve.

-ve

+ve

-ve

+ve

Social

Population growth rate

Attitudes

People seek the convenience

Disable People

Students & Limited income employees

Growing population and numbers of visitors/tourists/immigrants imply increasing demand for transport services

Most of attitude toward public transportation is very negative which will increase our cost in maintenance

People seek the convenience, personal comfort and social status that mainly private cars or, to a certain degree, taxis can offer possible negative impact on the Rail transport industry

If we design a place for disabled people we will attract a big cluster which will affect positively in our sales

If we design a specified trains for students & limited income people we will attract a big cluster which will affect positively in our sales

+ve.

-ve

-ve

+ve.

+ve.

Technological

Rapid development in communication and computer technologies

We are so far from new Rail Technologies

Increasing in video conference and conference meeting affect negatively in travelling to other cities

Social media channels if we use it positive as we can make our official channels

If we import a new technology it will affect positively in our image and our increase in sales-ve

+ve

+ve

Environment

environmentally-friendly

environmentally-friendly trains in an advantageous position as every mile only 21CO2 per Mile vice versa of cars which every mile produce about 35CO2 per Mile possible positive impact on the public transport industry+ve

Legal

Under government Supervision

Competition Which will affect negatively in taking speed decisions

As there is no other same direct competitor for our company as its public sector it give us a more than great chance to increase our profit in a speed way-ve

+ve

Competitors

The Holding Company for Maritime and Land Transport is an affiliate of the Ministry of Investment.The holding company owns among its companies three affiliate companies specialized in the public transportation of passengers in Egypt which are:

East Delta for transport and tourism company

Steady increase of workers until reaching 6800 Number of branches :14 Number of operation centers :20 Number of central workshops; 4 apart from branches workshops for maintenance. Fleet; 800 vehicles of various brands.

Upper Egypt for transport and tourism company

The number of employees 4700 approximately. The company head office is located at Nasr city- Cairo in addition to other fifteen branches distributed across three sectors as follow:a) Cairo & red sea sector ( Giza, Cairo, Fayum and red sea )b) North sector ( Beni Suef, Maghagha, Menya, Mallawi, Assuit and new vally oases )c) South sector (Sohag, Qena, Naga Hamady, Esna and Aswan).Upper Egypt for

transport and turism companyWest and Middle Delta transport and tourism

The company exercised its activity through the main center in Alexandria, and branches nationwide, in Cairo, Alexandria, Beheira, Matrouh and Menoufia, Western and Kafr El-Sheikh and the activity of its fleet up to the Red Sea and Sinai, and Aswan number of areas of the company (8) Alexandria-sand-Damanhour-Cairo-Western-Mahalla, Kafr El-Sheikh-- Lower). The number of company branches (18) three branches of the Alexandria-and 10 branches of the Damanhour-4 branch of the Bank of Cairo-number 3. The number of lines : the company's share of the company's 209 line in the Egyptian market for passenger transport companies among regions about 30% of the passengers. The application has been automated reservation from 1996 to connect offices in Cairo and Alexandria (Preparations are underway to develop the project includes all lines)

Alexandria-Cairo-Cairo airport every half hour (Pullman / golden shares) Alexandria-Beni Suef four dates (adapted) Alexandria-Marsa Matrouh every half hour (Pullman / golden shares / McIff) Alexandria Fayoum four dates (adapted) Alexandria-Oasis 3 mo re daily (adapted) Alexandria-Mallawi 8:00 (adapted) Alexandria-Salloum 12 date (adapted) Alexandria, Hurghada-3 dates (Pullman) Alexandria, Tanta 20-date daily (adapted) Alexandria, Sharm el-Sheikh two date (Paul Man) Alexandria-Mansoura 10 times daily (adapted) Alexandria Port-eight times daily (Pullman-golden shares) Alexandria-Suez six times daily (Pullman-golden shares) Alexandria-Damietta four times daily (adapted) Alexandria-Els Kazik three times daily (adapted) Alexandria, Ismailia-four times daily (Pullman-golden shares) Alexandria-Arish three times daily (golden shares) Alexandria-Qena 6:00 (adapted) Alexandria-February 2 date (adapted) the Scanderih - Assiut two later (adapted)Super jet EgyptPrivate Cars

For example as the distant between Aswan & Cairo is very long about more than 1000 KM so its very expensive & not comfortable to use it.Super jet Egypt

The evolution of the size of the fleet until now reached the number 135 bus from various capacities (27 passengers VIP - 49 passenger aircraft City Liner and 68th 74.88 passenger aircraft Sky Liner and Double Dekker Local lines1) Cairo / Alexandria and Cairo / Port Said in 1979.2) Cairo / Marsa Matrouh and Alexandria / Marsa Matrouh in 1983.3) Line Alexandria / Port Said / Alexandria in 1984.4) North Coast line .. Agami / Marakia / Mrabila / Aida / Sidi Abdel Rahman in 1991.5) Footsteps Cairo / Hurghada and Alexandria / Hurghada in 1994.6) Line Cairo / Sharm El Sheikh / Cairo from 19957) Alexandria line /Sharm El Sheikh/ Alexandria in 19 of95.8) line Cairo /Hurghada/ Cairo from 1995.9) Alexandria line /Hurghada/ Alexandria in 19 of95.10) lineHurghada/Luxor/Hurghadafrom year2011.11) line Cairo /Al Arish/ from Cairo in2012.

International lines:

1) Jordan Cairo / Amman / Cairo via the ports of Aqaba and Nuweiba 1985.2) Libya Cairo / Benghazi / Tripoli / Cairo by road coastline in 1989 in collaboration with the Union of the Libyan Arab fill out the trips inside Libya between Benghazi and Tripoli.3) Saudi Arabia Cairo / all cities of the Kingdom / Cairo via the ports of Nuweiba and Aqaba in 1989 in partnership with Saudi companies that transport passengers inside Saudi territory.4) Syria Cairo / Damascus / Cairo via the ports of Aqaba and Nuweiba 1990.Market Segmentation

Consumer Market

Segmentation VariablesData

Geographic

World RegionMiddle East - Africa

CountryEgypt

CitiesAll major cities of Egypt

DensityUrban

ClimateHot, Dry, Cold

Demographic

AgeAll ages, above 15

GenderMale - Female

Family Size1-2, 3-4, 5+

Family Life CycleSingles, Married without children& Married with children

Annual Income15,000+

Occupationfrom middle class to upper class

EducationSchools, Colleges, Universities

ReligionMajor religion of Islam, Christianity and small percentage of others

RaceMiddle Eastern

Nationality

Egyptian

Psychographic

Social ClassMiddle& Upper classes

Lifestyle

Casual& Conservative

Behavioral

Occasionsthe beginning of the school year, summer& official vacation& Army transport

BenefitsSafety, flexibility& scheduled time

User StatusStopped& first time users

Loyalty StatusStrong

Readiness Stage

Aware, Interested

Market Segmentation

Business Market

Segmentation VariablesData

Demographic

IndustryUniversities, districted large companies, factories, hotels and touristic agencies

Company LocationEgypt, Middle East, Africa

TechnologyWIFI service, easy ticketing machines& traditional technologies

Catering serviceDeal with an outstanding company in food& beverage industry

User/ non statusBoth

Customer capabilities

Any

Purchasing approaches

Purchasing functionorganizationAny

Power StructureAny

Nature of existing relationshipAny

General purchasing policiesDown payment

Purchasing criteria

Cash, credit, installment

Situational factors

UrgencyAny

Specific applicationN/A

Size or order

Starting from 500 seat/ month

Personal Characteristics

Buyer-seller similaritySimilar, non-similar

Attitude toward riskAny

Loyalty

Any

Marketing Strategy

Our strategy aims to target both of customer& business market segments. For customer market, ENR will focus on the segment of all network governorates travelers , ENR will assign new train offering new featured services; this should be done on parallel with targeting business market.

ENR will introduce a VIP train offering a superior service for its 21-45 years old passengers with high income level who seek luxurious service in travelling.

The applied marketing strategy is Differentiation by offering service that complies with the international standards.

To increase awareness in the market by the new service benefits to our target markets, Budget assigned for awareness 48% from total marketing budget.

To ensure sustainable growth via service development New service-current market, by offering new service to our current markets and targeted market.

Target Market

The ENR market comprises a mix of local residents and visitors, traveling for a variety of purposes including intercity travel, vacation/recreation, business travel, and personal business.The business traveler is a golden egg in that they represent the potential for significant revenue and ridership increases. In order to capitalize on this segment, significant improvements in service, frequency, and on-time performance will need to be made to accommodate the business travelers needs.

Customer Target market

A. Customer Target profile:

1. Geographics: Lives or work along the ENR network governorates.2. Demographics: (advertising target) Single or married Between the ages of 21-54 Education experiences beyond high school. Earning a combined annual family income of 20,000 EGP/ year or/and greater.3. Psychographics: Values time and considers it their single most limited resource. Excited about accepting and using innovative ideas and services. Web users. Increasing resources invested into safety and security issues. Seeking for Nationalism.4. Behaviors: They are leaders in services selection and respond to the opinions of the industry experts when making purchase decisions. This group will first look to the Internet to acquire this information. They defend these decisions under most any circumstance and will adamantly sell those that ask why they use the service and why they made the choice they did. This group can be a powerful, unpaid sales force resulting from the referral network they build

B. Value add to our target customer1. To save: Money as our ticket will be less than air plane prices Time as will transport you around your place no need for extra transportation. Effort as you can reserve your ticket online.2. To Provide : Open WIFI service. 5 starts food and beverages services. Outstanding Comfortable seats.

Business Target market

A. Target Business market profile1. Universities.2. Companies.3. Hotels.4. Touristic agencies.All along our network governorates to provide their members/customers high quality services with relatively low cost Positioning

1- ENR company (VIP service) will be positioned as a high quality service for all traveler at anywhere along our extended network with moderate price if compared with Flight.2- Safest transportation with moderate price if compared with road accidents.

Marketing Mix

Product

Core Product:

Passenger transport in Egypt (an intangible service)

Actual Product:

a) VIP tickets Aswan Cairo round tripsb) Convenient, quick and safe journeyc) Stations located at convenient spots close to main centers and venuesd) Comprehensive ticketing and fare systeme) Time convenience almost 24 hours per day f) Customer service and assistance (both at the station and train)g) VIP waiting areas in stations with business servicesh) Low-cost and environmentally-friendly public transport

Augmented Product:

Food & Beverage services

For railways, this is the service offered to customers, both existing and prospective. However, the term also implies some notion of the attributes of a service - its basic design, or its essential features; its presentation, or how it is packaged; its associated support level (which is usually related to the capacity of the organization to deliver an acceptable standard of support for the service); and its branding, or its association with a particular image and identity.Price

1- Our Price objective is maximize profit 2- Our customers target are less sensitive to the price due to : Our price will be higher than busses competitors e.g assuitcario trip will be 120 EGP/ticket compared with super jet one 80 EGP /ticket we justified the difference that :a) We will provide Open WIFI service.b) 5 starts food and beverages services.c) Outstanding Comfortable seats.d) Extensive Network can reach everywhere.e) Convenient, quick and safe journey.f) Stations located at convenient spots close to main centers and venues.g) Comprehensive ticketing and fare system.h) Time convenience almost 24 hours per day.i) Customer service and assistance (both at the station and train).j) VIP waiting areas in stations with business services. Our Price will be less than plane ticket prices with providing better services ( Dear passenger please continue using your Electronic devices)3- Our Estimated Total cost 0.10 EGP/Km/Ticket including all fixed and variable cost (HMP, Maintenance cost and customer services and diesel consumption.4- Our competitor prices: Super jet average price 0.2 EGP/Km/Ticket. Air plane ticket Price 1.38 EGP.5- Pricing Method: To get 50% profit margin in case of 60% occupancy degree the price will be 0.25 EGP/Km/Ticket (e.g Cairo-Assuit 200 EGP/return ticket) Breakeven point is 40% occupancy degree.6- Selecting the final pricee.g Cairo-Assuit 120 EGP/ ticket

Adapting the price Various types of tickets: a) one way tickets : 0.33 LE/Km/Ticketb) Promotional Pricing (return tickets 0.25 LE/Km/Ticket)c) Relatively inelastic demand peak time ( Holidays events etc) : 0.375 LE/Km/Ticket to increase profitd) Relatively elastic demand (off-peak times ) : 0.275 LE/Km/Ticket to increase sales and Profit

Prices similar to those of buses but cheaper than plans, taxis or costs of running a car Special millage offers for regular travelers.

Place

ENRs railways cover all major suburbs in Egypt. However compared to other transportations services in Egypt the coverage is the only way to go from any place to other all over the Egypt Tickets are being sold on every station via station kiosks and windows ENR will offer different places for tickets as ATM machines and online ticketing system.

Promotion:

Use of print advertising on train stations and in some magazines & Newspaper Updated web page informing of all news, changes, travel conditions, track-works, notices, delays etc. Corporate brochures in all Egypt information and tourist centers, station and major venues Special millage offers for regular travelers. Some offers for round trip during the seasons. Dealing with Mobile service providers companies which the customer can changes his points with tickets. Strong campaign in media and outdoor promotion. Special logo for VIP tickets and services. Billboard on the streets with selling the prestigious service concept.

Performance Measurements (control)

Reviewing monthly ridership and revenue reports can help determine if the marketing message is effective. Market research using focus groups, surveys, and advertising awareness research will help gain insight to the effectiveness of our campaigns Obtain feedback from customers using comment cards and on board surveys to gather information about key attributes such as service reliability, personal safety, employee presentation and helpfulness, condition of equipment and facilities, and quality and availability of customer information. Operating statistics such as on-time performance and customer service ratings are important performance indicators related to the execution of the advertising strategy and marketing promotions, and the effectiveness of customer service delivery.

The Additional 3Ps

People

Both train drivers and station staff are extensively trained for emergency procedures and other work-related procedures That also includes simulator training for drivers and emergency simulation for guards and other staff Service staff are also regularly health-checked Microphone techniques are also incorporated in staff training and as an added incentive there is a golden mic award for staff members providing clear information

Process

The Audit Office is responsible for everyday operations and processes supporting efficient and quality delivery of services to customers Also check the integrated system of specific control groups includes: computerized signal control, communication technology among the controller and signaler and station and train crews, security cameras to check and control train arrivals/departures and crowding, timetabling and other procedures

Physical Evidence

Frequent graffiti and rubbish in trains Temperature in trains is one of the factors which customers complained about

ENR Marketing Plan Budget:

Total ENR marketing plan budget in order to cover the different marketing activites for one Year {Service promtion, advertising, event, incentive program, Adimn csot, etc } is estimated as {42,000,000 EGP} which is repersented as 5% of the total Company revenues {840,000,000 EGP}.

The detailed budget will be attached in the report for more data which devided on montly base. The mian marketing activites are divided to 9 categories as follow:Budget CategoriesWeight %

Software & Subscriptions10

Public Relations & Events20

Advertising (print)10

Advertising (online)8

Complementary Program2

Creative Agency Fees30

Corporate Lists.7

General Admin3

Incentive Memberships & Motivation Plan10

Budget Analysis:

Funding. 40% of the total budget will be funded by sponserd in order to accept his advertising on my train.

Spending Summary.According to our marketing study we find that there are high demand on Dec, Jan., Feb, June, July and Aug that because the religion festival, winter seasons and university. As a result we will spend 40 0f the total budget on these mentioned months and the 60%of the budget on the low demand month in order to encourage the passengers and raise the demand.

Budget Category Breakdown

Budget Control:

In order to control the budget expenditure and ensure the high performance, we have to follow the mentioned indicators below;1. Financial indicators;Sales Revenues, production cost, expenses and profitability will be measured in quartile bases. Market share analysis also will be measured in quartile bases to show how will the company is dong VS its indirect competitors 2. Customer FEED BackCustomer satisfaction level will be identified through online scurvies, Groups, Individuals interview and direct communications3. Promotion efficiency: track will be kept of each sales promotion companies and its impact on sales and the percentage of sales sold and offers, display cost per $ sales and number of inquires resulted.4. Distributing efficiency :Measures are mainly taken through the statistical operational research mentioned, inventory control, ware houses location, and transportation method- optimum routing, scheduling loading and unloading

Appendix

Refrenecs.

http://en.wikipedia.org/wiki/Egyptian_National_Railwayshttp://en.wikipedia.org/wiki/Rail_transporthttp://en.wikipedia.org/wiki/Train_stationhttp://www.mindtools.com/pages/article/newTMC_05.htmhttps://enr.gov.eg/ticketing/public/smartSearch.jsfhttp://www.raileurope.com/europe-travel-guide/great-britain/index.htmlhttps://www.bahn.com/i/view/DEU/en/http://www.travelchinaguide.com/cityguides/shanghai/transportation/train.htmhttp://www.lowtechmagazine.com/2013/12/high-speed-trains-are-killing-the-european-railway-network.htmlhttp://www.visitnorway.com/en/getting-here-and-around/train-in-norway/the-worlds-best-train-ride/http://www.sba.gov/content/developing-marketing-plan

Competitors Chart

Appendix 2: Questionair

1. Do you often travel by train?a) Yesb) No

2. With whom do you travel usually?a) No oneb) Spousec) Spouse and childrend) Children onlye) Business association/friends/relativesf) An organized tour group

3. From your point of view or a practical experience, generally in abroad the railway offers better servicesa) Strongly disagreeb) Disagreec) Neither agree or disagreed) Agreee) Strongly agree

4. Safety in travelling by train to me isa) Extremely importantb) Very importantc) Somewhat importantd) Not very importante) Not at all important

5. Egypt Railway safety isa) Excellentb) Very Goodc) Goodd) Faire) Poor

6. Egypt Railwaya) Safeb) Unsafec) Customer oriented d) Just offering its servicee) Can be relied on in the matter of timef) Not reliable

7. If a WIFI service is available in return to an increase in the ticket price, I woulda) Definitely buyb) Probably buyc) Not sured) Probably not buye) Definitely not buy

8. What's your age category?a) 15 - 25b) 26 35c) 36 40d) 41 459. How do you see the current pricing of ENR tickets comparing to other ways of transportation?a) Cheapb) Fairly pricedc) Expensive

10. During the period that ENR has stopped operating, which mean of transportation have you used?a) Own carb) Planec) Super-jet

11. Do you believe that it gave you the level of safe you desire?a) Yesb) Doesn't matterc) No

MBA Assuit 6