Just Thought of this exercise. I hope you'll find it interesting......

Think about using Indian Railways and

associated resources (trains, bogeys, stations, etc. etc.) for providing customer value to different set
of customers, other than its core value, i.e., transport. Define your customer (segment) and their
possible needs. Create a set of values for your customer, which then can be provided using Indian
railway resources, with minimum monetary investment. Also, calculate the possible economic/social
value that we can generate for Indian Railways/ or independent entrepreneurs who may use railways
for their business proposition/ or society etc. etc..... Consider this assignment as a competition and
come up with most unique ideas and explain them and we all will vote for the individual ideas
(though my vote will have more weight :)). Winners will be awarded extra marks/grades :) .... Let me
give an example: For instance, on many stations, there are few empty bogies kept lying, probably
discarded...Can they be used as classrooms to teach poor children/ or elders from villages in the
evenings, who otherwise face infrastructure problems in their own villages and the teachers can be
volunteers from nearby towns. We can even use IT for possible distance teaching here? May be! .... I
foresee much more unique and interesting propositions from all of you

In railways when we can assume that there are two types of customers

1) Value customers
a) Quality Food
Indian railways must ensure that quality food is provided for the customers
b) Comfort
There is a discomfort caused by other passengers without tickets and Indian railways
can make sure that there is no discomfort to the customers by providing these
passengers with a reasonable other means to travel

2) Service specific customers

Needs:
a) Quality food
Service specific customer prefers a comfortable environment and are not that price
sensitive. Customers from this segment prefers Quality food and service. Indian railways
can incorporate with restaurants near railway stations to provide quality food for the
customers
b) Waiting accommodation:
The current level of pre-travel accommodation service is pretty low and Indian railways
can try to provide quality waiting halls for customers and can provide them based on the
customer requirements by charging a premium.
c) Luggage:
In case of heavy luggage people usually prefer to move that through transport and as of
now the luggage transport services provided by the railways are not satisfactory and they
can consider the mode based on the luggage, like, safer mode of transport for value
goods if required.
d) Emergency cases
There are cases when people might miss their train in some extreme cases or there
might be some emergency cases to deal with. Railways can form a portal to deal with
such issues and try to provide them a seat as early as possible based on the reason and
situation by charging some extra money for the service provided
e) Other Services:
 In various areas consumers might need various things and sometimes souvenirs to
collect from famous places. Indian railways can make contracts with local dealers and try
to provide such services to customers

Economic Value:

Usually in social campaigns the main challenge is to retain the audience and in the end to
create awareness among them. If we can use railways as a platform and if the customer is
willing to spend a few minutes of his/her time this a good way to communicate the message
to the audience.
By incorporating with local dealers while providing some services (ensuring the quality) can
help those people generate a reasonable revenue.

Welcome Back. Here is a short case study on another B2B relationship. We understood in the Kimura
case study that understanding of customer value is important for any business. In B2B context, it is
even more important for success and growth of the company. Here is an example of a company
which is so concerned about customer but it is still not getting sales. Why do you think so?

Scene 1:

The executive committee meeting ends at 5:30 p.m. and the committee members adjourn, pleased
with what they have accomplished. Their company, Superior Shipping Services, provides trucking to
large industrial users, giving customers reliable scheduling and careful handling. In response to
decreased regulation in trucking and related industries, Superiors executives believe their company
needs a stronger marketing orientation. They want to build and maintain lastingand profitable
relationships with their customers. That, they believe, is what getting close to the customer means.
At an earlier meeting, the executive committee had decided to recruit a sales-marketing manager
from a renowned marketer in the computer industry. Superiors president argued that such a person
was likely to have attitudes and values that would fit well with the companys reputation for
especially high quality and service. The president and administrative vice president then identified
possible candidates. The leading choice was Dale Spencer, a senior salesperson with an impressive
record. At this meeting, the committee has outlined an offer that Superiors president believes would
be attractive to Spencer.

Scene 2 (one month later):

Dale Spencer assumes the job of vice presidentsales for Superior Shipping. The negotiations have
been smooth and Spencer is pleased. Spencer and Superiors president have agreed completely on
what Spencer ought to do. In the past, Spencer had been a patient and successful builder of
customer relationships. On occasion, sales efforts became protracted as Spencer and other support
people devoted long hours to wooing prospects. They eventually won most of the ordersand the
resulting relationships proved close and highly satisfactory to both parties. Superiors managers want
similar customer ties. They plan to invest time and effort in studying their customers shipping needs.
They will help customers plan. They will also maintain the high quality of Superiors service. As a
result, they expect to maintainindeed, strengthenSuperiors relationships with its existing
customers. They also expect to win important new customers. Spencer will have responsibility for
instilling the new attitude and approach in Superiors sales force. Spencer will also personally handle
sales efforts at some of the key new accounts. Spencer is excited about the challenge.
Scene 3 (two years later):

Several of Superior Shippings important executives are discussing Dale Spencers future with the
company. Spencer has been severely disappointed with the results to date. The executives, knowing
that Spencer may leave, are thinking about whether to encourage or discourage the change. They
wonder what has happened at Superiorand why. Spencer has been a respected manager. The
sales-people have indeed learned better ways of analysing customers long-term shipping
requirements and of identifying opportunities for improving them. Superiors other managers have
kept more in touch with customers as part of the overall sales effort; they have heard numerous
compliments about their sales-peopleand especially about Dale Spencer. Yet all these efforts have
not produced more sales. True, many prospects have responded to Superiors attention by awarding
the company some business. But many of those new customersas well as many of Superiors old
accountshave also experimented with other shippers. One competitor, Efficiency Truckers, has
proven especially irksome, competing on the basis of price and doing so increasingly effectively.
Many of Superiors established customers have given Efficiency their largest and most regular
shipments in exchange for price concessions. Three of the companys most desired new customers
have done the same thing even after Superior salespeople had helped them create their shipment
patterns through consolidation and more careful planning. Virtually all those customers have also
continued to do some business with Superior, giving the company their last-minute smaller
shipments, severely testing Superiors ability to provide quality service. Superiors revenue has
slipped, its sales force expenses have increased, and all of Superiors managers are deeply concerned
by the developments. Dale Spencer is especially upset by them. What happened?