Marketing Plan

Fall
2014
Egyptian National Railway
{ENR}

Introduction
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 Khedive Abbas I era. The
Railway was from Alexandria to Cairo 209 km. Khedive Abbas I whom we rarely
remember signed an agreement with Engineer Robert Stephenson to build the
railways for 56,000 Pounds in 1850. In 1851 Stephenson had accepted to
be Engineer-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.

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

In 1933 the ESR inaugurated its museum about the history

of railways in Egypt. It is beside Cairo Station and it was
opened in 1933 for 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

became the

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.

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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 services
ENR

serves

number

of

places

by

bus

services

including Abu

Simbel (bus/ferry), Sharm el Sheik, Siwa Oasis, and Hurghada

ENR annual Income

8

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
The authority receives LE300 million in government subsidies to break even, the everrising 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 authority
4. 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. Airconditioned 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 facilities
During 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 billion

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
Market Share
The 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)
b)
c)
d)
e)

10

Safety and Security

Customer Focus
Connectivity
Environment and Energy
Financial and Organizational Excellence

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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:

11

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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 years
By 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,

12

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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

13

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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;

14

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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?

Yes

15

No

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
2. With whom do you travel usually?

No one

Spouse

Spouse and children

Children only

Business association/friends/relatives

An organized tour group

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

Strongly disagree

16

Disagree

Neither agree or disagree

Agree

Strongly agree

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

4. Safety in travelling by train to me is?

Extremely important Very important Somewhat important Not very important Not at all important

5. Egypt Railway safety is?

Excellent

17

Very Good

Good

Fair

Poor

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

6. Egypt Railway?

Safe

Unsafe

Customer oriented

Just offering its service

Can be relied on in the matter of time

Not reliable

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

Definitely buy

18

Probably buy

Not sure

Probably not buy

Definitely not buy

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

8. What's your age category?

15 - 25

26 35

36 40

41 45

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

Cheap

19

Fairly priced

Expensive

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

10.

During the period that ENR has stopped operating, which mean of

transportation have you used?

Private car

11.

20

Plane

Super-jet

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

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

SWOT Matrix Analysis

Situation Analysis { PESTLE }

Harmful

Helpful

to achieving the objective

to achieving the objective

Inter
nal
origi
(metsys eht fo setubirtta)

Exter
nal
origi
n

emnorivne
eht fo setubirtta
ket
around

make new

21

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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;

Issue

Impact on Business
Political

Due to unsecure conditions by travelling +v

Unsecure conditions

by private car or on highway it give us a

high potential chance to increase our

sales

Unemployment rate

increasing in unemployment give us high +v

potential

to

choose

from

qualified

employees
Employment Laws

as a govern employees its very difficult -ve

to fire or hire easy

regulation

of

the

public

transport sector

regulation of the public transport sector

presents many limitations in case of
misuse or cutting the railroads

-ve

Government subsidization

Low services

Non dependent organization

Any change in government will affect the

-ve

policy and regulations

Economic

22

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Petrol prices (car Fuel)

have

on

average

been

increasing

possible positive impact on the public

+v
e.

transport industry

Diesel Prices

have

on

average

been

increasing

possible negative impact on the public

disposable income

ve.

transport industry

Increase

in

the

average

disposable

income of both families and individuals

indicates that more people can afford to

ve.

buy and use a private car

Wage legislation - minimum

wage and overtime

Worker strikes to increase their salaries

which will affect negatively on our cost

-ve

Skill level of workforce

In Egypt workforce there is a well-trained

people we can use in our company

+v
e

Economic growth rate

Is very low which will affect negatively in

Exchange Rate

our sales
-ve

It give us a good opportunity to increase

our sales for touristic level
+v

23

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
e

Social

Population growth rate

Growing population and numbers of +v

imply e.

visitors/tourists/immigrants

increasing demand for transport services

Attitudes

Most

of

attitude

toward

public

transportation is very negative which will

-ve

increase our cost in maintenance

People seek the convenience, personal

People seek the convenience

comfort and social status that mainly

private cars or, to a certain degree, taxis
can offer

-ve

possible negative impact on

the Rail transport industry

Disable People

If we design a place for disabled people

we will attract a big cluster which will
affect positively in our sales

Students & Limited income

employees

24

+v
e.

If we design a specified trains for

students & limited income people we will
attract a big cluster which will affect

+v

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
positively in our sales

e.

Technological

Rapid

development

in

Increasing

in

video

conference

and

communication and computer

conference meeting affect negatively in

technologies

travelling to other cities

-ve

Social media channels if we use it

+v

positive as we can make our official

channels

We are so far from new Rail

Technologies

If we import a new technology it will

+v

affect positively in our image and our

increase in sales

Environment

environmentally-friendly

environmentally-friendly

trains

in

an

advantageous position as every mile only

+v
e

21CO2 per Mile vice versa of cars which

every mile produce about 35CO2 per Mile
possible positive impact on the public
transport industry
Legal

Under

government

Supervision

Competition

25

-ve

speed decisions

Which will affect negatively in taking

As

there

is

no

other

same

direct

competitor for our company as its public

+v
e

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
sector it give us a more than great
chance to increase our profit in a speed
way

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;

apart

from

branches

workshops

for

maintenance.

Fleet; 800 vehicles of various brands.

Upper Egypt for transport and tourism company

26

The number of employees 4700 approximately.

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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 company

West 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 ElSheikh 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 Caironumber 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)

27

Alexandria-Cairo-Cairo airport every half hour (Pullman / golden shares)

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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 Egypt

Private 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

28

Local lines

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
1)
2)
3)
4)

Cairo / Alexandria and Cairo / Port Said in 1979.

Cairo / Marsa Matrouh and Alexandria / Marsa Matrouh in 1983.
Line Alexandria / Port Said / Alexandria in 1984.
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 1995
7) Alexandria line / Sharm El Sheikh / Alexandria in 19 of 95 .
8) line Cairo / Hurghada / Cairo from 1995.
9) Alexandria line / Hurghada / Alexandria in 19 of 95 .
10) line Hurghada / Luxor / Hurghada from year 2011 .
11) line Cairo / Al Arish / from Cairo in 2012 .

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
Variables
Geographic

Data

World Region
Country

Middle East - Africa

Egypt

Cities

All major cities of Egypt

Density
Climate

Urban
Hot, Dry, Cold

29

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
Demographic
Age
Gender

All ages, above 15

Male - Female

Family Size

1-2, 3-4, 5+

Family Life Cycle

Singles, Married without children& Married with children

Annual Income

15,000+

Occupation

from middle class to upper class

Education

Schools, Colleges, Universities

Major religion of Islam, Christianity and small percentage

Religion
Race
Nationality

of others
Middle Eastern
Egyptian

Psychographic
Social Class
Lifestyle

Middle& Upper classes

Casual& Conservative

Behavioral

Occasions

the beginning of the school year, summer& official vacation&

Benefits

Army transport
Safety, flexibility& scheduled time

User Status

Stopped& first time users

Loyalty Status
Readiness Stage

Strong
Aware, Interested

Market Segmentation

30

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
Business Market
Segmentation Variables

Data

Demographic

Industry

Universities, districted large companies, factories, hotels and

Company Location

touristic agencies
Egypt, Middle East, Africa

Technology

WIFI service, easy ticketing machines& traditional technologies

Catering service

Deal with an outstanding company in food& beverage industry

User/ non status

Both

Customer capabilities

Any

Purchasing approaches
Purchasing

Any

functionorganization
Power Structure

Any

Nature of existing relationship

Any

General purchasing policies

Purchasing criteria

Down payment
Cash, credit, installment

Situational factors
Urgency
Specific application
Size or order

Any
N/A
Starting from 500 seat/ month

Personal Characteristics
Buyer-seller similarity
Attitude toward risk

31

Similar, non-similar
Any

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
Loyalty

32

Any

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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.

33

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Customer Target market

A. Customer Target profile:
1. Geographics:
o

Lives or work along the ENR network governorates.

2. Demographics: (advertising target)
o

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:
o

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:
o

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

34

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

B. Value add to our target customer

1. To save:
o

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 profile
1. 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.

35

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Marketing Mix
Product

Core Product:
Passenger transport in Egypt (an intangible service)

Actual Product:
a) VIP tickets Aswan Cairo round trips
b)
c)
d)
e)

Convenient, quick and safe journey

Stations located at convenient spots close to main centers and venues
Comprehensive ticketing and fare system
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
services
h) Low-cost and environmentally-friendly public
transport

Augmented Product:
Food & Beverage services

36

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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
a)
b)
c)
d)
e)
f)
g)
h)

justified the difference that :

We will provide Open WIFI service.
5 starts food and beverages services.
Outstanding Comfortable seats.
Extensive Network can reach everywhere.
Convenient, quick and safe journey.
Stations located at convenient spots close to main centers and venues.
Comprehensive ticketing and fare system.
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:
o Super jet average price 0.2 EGP/Km/Ticket.
o Air plane ticket Price 1.38 EGP.
5- Pricing Method:
o 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)
o Breakeven point is 40% occupancy degree.
6- Selecting the final price
e.g Cairo-Assuit 120 EGP/ ticket

37

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Adapting the price

Various types of tickets:
a) one way tickets
: 0.33 LE/Km/Ticket
b) 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 profit

d) 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:

38

Use of print advertising on train stations and in some magazines & Newspaper

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Updated web page informing of all news, changes, travel conditions, trackworks, 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

39

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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
40

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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

41

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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 Categories
Software & Subscriptions

10

Public Relations & Events

20

Advertising (print)

10

Advertising (online)

Complementary Program

Creative Agency Fees

30

Corporate Lists.

General Admin

Incentive Memberships & Motivation Plan

42

Weight
%

10

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Budget Analysis:

Funding.
To t
al

Bug et

40% of the total budget will be funded by sponserd in order to accept his

advertising on my train.

43

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

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.

Spending by Month
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Jan

44

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Total Cumulative Spend

$45,000
$40,000
$35,000
$30,000

Cumulative Spend

$25,000

Total Budget

$20,000
$15,000
$10,000
$5,000
$0
Jan

45

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Budget Category Breakdown

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Year to Date Spend

$4,183
Software & Subscriptions Public Relations & Events Advertising (print)
$2,928

Advertising (online)

$4,183
$1,255

Complementary Program $8,366

Creative Agency Fees
$4,183

Corporate Lists.

$12,550
General
Admin

Incentive Memberships & Motivation Plan

$3,347
$837

46

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Allocated Budget

$4,200
Software & Subscriptions Public
Relations
&
Events
Advertising (print)
$1,260
$2,940

Advertising (online)

$4,200

Complementary Program

$8,400
Creative Agency Fees

$12,600
Corporate Lists.

General Admin

$4,200
Incentive
Memberships & Motivation Plan
$3,360
$840

Budget Control:

47

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
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 Back
Customer satisfaction level will be identified through online scurvies, Groups,
Individuals interview and direct communications
3. 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

Actual Spend vs Budget

$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0

48

$12,600
$8,400
$4,200

$4,200

$3,360
$840

Year to Date Spend

$2,940

$4,200
$1,260

Budget

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Appendix
Refrenecs.
http://en.wikipedia.org/wiki/Egyptian_National_Railways
http://en.wikipedia.org/wiki/Rail_transport
http://en.wikipedia.org/wiki/Train_station
http://www.mindtools.com/pages/article/newTMC_05.htm
https://enr.gov.eg/ticketing/public/smartSearch.jsf
http://www.raileurope.com/europe-travel-guide/great-britain/index.html
https://www.bahn.com/i/view/DEU/en/
http://www.travelchinaguide.com/cityguides/shanghai/transportation/train.htm
http://www.lowtechmagazine.com/2013/12/high-speed-trains-are-killing-the-europeanrailway-network.html
http://www.visitnorway.com/en/getting-here-and-around/train-in-norway/the-worldsbest-train-ride/
http://www.sba.gov/content/developing-marketing-plan

49

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Competitors Chart

50

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}

Appendix 2: Questionair
1. Do you often travel by train?
a) Yes
b) No

2. With whom do you travel usually?

a) No one
b) Spouse
c) Spouse and children
d) Children only
e) Business association/friends/relatives
f) An organized tour group

3. From your point of view or a practical experience, generally in abroad the railway
offers better services
a) Strongly disagree
b) Disagree
c) Neither agree or disagree
d) Agree
e) Strongly agree

4. Safety in travelling by train to me is

a) Extremely important
51

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
b) Very important
c) Somewhat important
d) Not very important
e) Not at all important

5. Egypt Railway safety is

a) Excellent
b) Very Good
c) Good
d) Fair
e) Poor

6. Egypt Railway
a) Safe
b) Unsafe
c) Customer oriented
d) Just offering its service
e) Can be relied on in the matter of time
f) Not reliable

52

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
7. If a WIFI service is available in return to an increase in the ticket price, I would
a) Definitely buy
b) Probably buy
c) Not sure
d) Probably not buy
e) Definitely not buy

8. What's your age category?

a) 15 - 25
b) 26 35
c) 36 40
d) 41 45
9. How do you see the current pricing of ENR tickets comparing to other ways of
transportation?
a) Cheap
b) Fairly priced
c) Expensive

10. During the period that ENR has stopped operating, which mean of transportation
have you used?
a) Own car
b) Plane
53

MBA Assuit

Marketing Plan
Fall
2014
Egyptian National Railway
{ENR}
c) Super-jet

11. Do you believe that it gave you the level of safe you desire?
a) Yes
b) Doesn't matter
c) No

54

MBA Assuit