SEGMENTATION

Bangalore Metropolitan
Transport Corporation (BMTC)

Moving You Most Economically,

G RO UP NO
GROUP NO 5 5 1
 Why Segmentation is required?

• Segmentation is commonly used by

organizations to improve their customer
retention programs and help ensure that
they are:
– Focused on retaining their most profitable
customers
– Employing those tactics most likely to retain
these customers

GROUP NO 5 2
 How BMTC is adapted to
Segmentation?
• Need based Segmentation
– BMTC is a Monopoly in the public
transportation market, profits can be
increased further if the market can be
segmented with different prices charged
to different segments.
• Segment Identification
– Based on the Commuters income behavior
the segment is identified.

GROUP NO 5 3
 High Income Level
VOLVO SERVICES
LIKE
VAJRA
VAYU VAJRA

The Airport buses have a different fare structure compared to normal city buses.
Their fares range from Rs. 100 to Rs. 200 .They charge fare up to the airport from
the pick-up point and have very limited halts. They also have a very impressive
frequency and offers reservation too!
GROUP NO 5 4
High Income Level
AND
KENDRA SARIGE

GROUP NO 5 5
 Medium Income level
PUSHPAK
AND
SUVARNA SARIGE

This is a Pushpak Plus bus

services charge slightly more than ordinary buses, and usually do not have a con
The ticketing is done by the driver himself. These buses are rented out by BMTC to
companies to ferry their staff.

GROUP NO 5 6
 Low Income level
PARISARA VAHINI (Popularly called as Blue Bus)
AND
ATAL SARIGE

The commonest buses seen in the city are called Parisara Vahini by the corporatio
They wear a "Blue-white" livery. The minimum fare charged is Rs. 3 and the maximum
is around Rs. 28.
GROUP NO 5 7
 Special Services Introduced
• Hospital Special Services & Mall Special Service
• Ladies Special Services
• “Pass Special” Buses introduced,
• BIG 10,(Central Business and Shopping District)
•

GROUP NO 5 8
 Segment profitability
• There was loss in operation of Volvo buses
for the FY -08-09, but it was
compensated by the low level income
segment such as Blue buses.
• Due to segmentation the commuters of
different segments are happy by the
services and pricing policy
– (at the same time BMTC is catering for the
need and Demand also making Profits
through it)

GROUP NO 5 9
 Segment positioning
• BMTC have positioned its segment by the
behavior of the commuters:
– Volvo buses are positioned for IT
professionals who have a higher income.
– For International airport, Vayu Vajra buses
are deployed it is positioned for Air
travelers.
– Big 10 buses are deployed for frequent
users to central business district.
– Blue buses are positioned for frequent
travelers across city and usually for low
income level.

GROUP NO 5 10
 Segment attractiveness
• Introduced Rs-1/- ticketing system for
Volvo buses to attract more commuters.
• Introduction of mini buses for first to last
mile connectivity .
 Introduction of Day passes at an
attractive prices for all the segments,
Flexibility in travel using passes.
 'Shuttle services' for meeting this need
are best farmed out to the private
sector.  
• Introduced Rainbow Facilities to the
monthly pass commuters.
GROUP NO 5 11
Who are the competitors to BMTC?

 As BMTC is enjoying monopolistic

market the competitors are autorickshaw
and City Taxi.

GROUP NO 5 12
 How competitors are adapted to
segmentation?
• Auto rickshaw's are usually for medium
and high income level commuters.
– They charge a minimum charge of Rs 14/-
– They are found everywhere
– First to last mile connectivity.
• Taxi’s are usually for high income level
commuters.
– They charge a minimum charge of Rs- 250/-
– On call services.
– First to last mile connectivity.
–
GROUP NO 5 13
 Suggestions to improve!
• Introduction of more Volvo buses and
slowly phasing out blue buses.
• Increase in the frequency of buses
according to the segment.
• Introduction of monthly and Daily passes
over the internet.
• Introduction of Season tickets with special
offers, and One pass system for use in
all busses.
• Buy tickets before boarding system should
be introduced through Ticket Vending
Machines. GROUP NO 5 14
 • Introduction of a New segment such
as Double Decker Buses
•

GROUP NO 5 15
Introduction of Heritage routes for
tourists

GROUP NO 5 16
Any Questions?

GROUP NO 5 17
GROUP NO 5 18