Konsortium Transnational Berhad free essay sample

Since the birth of KTB in June 15, 2007 when it made its debut on Bursa Malaysia, it has maintained high service standard. The stage and express bus operations provide the most extensive coverage throughout Peninsular Malaysia, covering almost all major cities and towns as well as Singapore. The nationwide network is serviced by a fleet of more than 1,500 buses that covers more than 250 routes, generating more than 1,000 trips daily and this translates to around 60 million passengers a year. To date, KTB commands the largest market share, with ‘Transnasional’ being the leader in the express bus industry in Peninsular Malaysia. Besides ‘Transnasional’, KTB also operates (other business units) ‘Plusliner’ economy express buses ‘Cityliner’ stage buses, and luxury bus services under the ‘Nice’ brand that operates the express division. Other than Transnasional Express Sdn. Bhd, its other subsidiaries include Syarikat Kenderaan Melayu Kelantan Berhad, Syarikat Tanjung Keramat Temerloh Omnibus Berhad, Kenderaan Langkasuka Sdn. Bhd. , Kenderaan Klang Banting Berhad, Kenderaan Labu Sendayan Sdn. Bhd. , Starise Sdn. Bhd. , and Syarikat Rembau Tampin Sdn. Bhd. hich are engaged in public transportation services; Park May Berhad, which is engaged in investment holdings; PT Indonadi, which is engaged in trading of vehicles, and The Kuala Lumpur, Klang and Port Sweettenham Omnibus Company Bhd. , which is engaged in public transportation services and investment holdings. Other Services In addition, KTB offers bus charter services (Plusliner Travel Tours) which offers sa fe short local charters to all-day to multi-destinations and trips, Trans Courier (Trans-Express Courier Sdn Bhd) which handle customers hipping needs and is a cost effective alternative to other ground or air options for same day delivery within Malaysia, Mobile Advertising Services for Transport Operations (MASTRO) which offers advertisers boundless opportunity to communicate their messages effectively and in full view of their target audience. Companies Mission The company strive to become a conglomerate that is Progressive, Innovative, Profitable, Customer Oriented and Committed to National Aspirations Major competitors †¢Super Nice Bus Express Malayia †¢AeroLine Express Bus Penang †¢First Coach Starwira Shuttle †¢Airebus †¢Maraliner †¢Kuala Lumpur City Tour Bus †¢Biaramas Bus Express †¢Transtar travel malaysia express bus †¢Rapid KL SWOT Analysis We shall first begin by identifying and examining the Internal Environmental factors of the firm (Strength and Weaknesses) then followed by the external factors (Opportunities and Threats), all of which are instrumental in matching the firms resources and capabilities to the competitive environment in which it operates there by facilitating efficient and effective strategic planning of the organizational. Strength. i. Efficient and timely services ii. Possession of Compressed Natural Gas (CNG) technology iii. Totally brand new and enjoyable traveling experience- First in the country with adjustable head rests iv. Safe and affordable public transportation v. Well qualifies employees personnel vi. Possession of high capacity double decker buses vii. Good reputation- Its known as the leader in the express bus industry viii. Excellent customer service- Dedicated officers- Always ready to assist and answer any customer questions regards it services. ix. Convenience. Tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are Petronas fuel station operators. Weakness i. Luck of undifferentiated services in relation to your competitors. ii. Damaged reputation caused by an unsatisfied customer. iii. Unfeasible infrastructure to cater for the handicapped Opportunities i. An unfulfilled customers needs from other bus operators ii. New technology that improves the companies service offering. iii. Increase in passengers using public means of transport due to high fuel prices iv. oosening of regulations by government agencies which originally limited the number of bus operators Threats i. Substitution of bus services for private vehicles ii. The growing concern of global warming and the need for alternative cleaner fuel sources which will only result in high company costs iii. Heavy competition in the industry with more than 200 stage bus operators and from other alternative means of transport such as cab ser vices, trains, air transportation, etc. iv. Tougher government regulations on privately own public bus service providers, example safety standards v. Fluctuating fuel prices i. The rising costs of operations due to hikes in fuel, vehicle insurance premiums, bus terminal rentals, vehicle tires as well as parts and maintenance costs which have. vii. Unhealthy industry especially when it comes to the price structure in Malaysia. Countries like Indonesia raise fares every six months and there are also regular fare hikes in Singapore. TOWS Matrix This analysis assists the company identifies SWOT analysis factors it should best pursue so as to compete better in the industry, whether its the competitive advantage strengths, more lucrative opportunities or and upcoming opportunities. OpportunitiesThreats Strength. SO Strategies i. KTB’s excellent customer service should be able to attract unsatisfied customers from rival companies ii. New technology will be able to enhance customers travel experience iii. KTB’s differentiated services will help attract new customer over their competitors iv. ST Strategies i. KTB’s effective and timely services won’t deter off commuters. ii. Possession of Compressed Natural Gas (CNG) technology which is less toxic to the environment. iii. KTB’s differentiation strategy will come in handy in creating a competitive advantage iv. KTB has set the bench mark in travel safety through maintenance v. High capacity double decker buses which have helped minimize costs WeaknessWO Strategies Overcome weaknesses by taking advantage of opportunities WT Strategies Minimize weaknesses and reduce threats Analyze Your Findings. KTB’s strategy appears to be well-matched to its industry and competitive conditions. KTB’ Transnasional is the industries leader in the express bus division. The company’s strategy appears to be based on a mixture of differentiating features, cost leadership and service strengths and competitive capabilities. A key element of its strategy is an emphasis on providing exceptional customer service. Since commuters were dissatisfied with the services offered by other public bus operators. Business Level Strategy In Malaysia, KTB’s transnasional is positioned as the number one brand in the express bus services. Currently KTB is made up of four independent business units and these include: Transnasional, Nice, Plusliner and Cityliner. Each of these business units is competing in different market segments of the transportation industry in order to tailor the entire KTB services to best suit each customers’ needs and all four business units have separate accountability for their financial statements. KBT as the parent company offers all strategic leadership, a mix of two different business strategies to best suits their target market and the survival of the company in the industry. In general, KTB applies both the cost leadership and differentiation strategy within there business units. Transnasional, which applies a cost leadership strategy is Malaysia’s leading bus operator in the express industry. To use a cost leadership strategy, operations have to maximize economy of scale, reduce costs, or use volume to maintain profit. The application of the cost leadership strategy by KTB is evident with the recent launch of the Transnasional Skyview Scania double decker buses. The new buses, with the capacity of 69 sitting passengers, the highest for any interstate bus service as opposed to the 44 passenger capacity. Having a high passenger capacity bus will assist the company minimize total operating costs. The engines of these new buses have been designed to take on as less stress as possible thereby enabling them to be more reliable and consume less fuel. Also, as part of the cost reduction endeavor, KTB with Transnasional opted for Compressed Natural Gas (CNG) technology that allows the buses to run on an Natural Gas. This kind of fuel is not only cost efficient but is also less toxic to the environment. The differentiation strategy which features a superior product/service type of competitive advantage keyed to higher quality, better performance, wider selection, value-added services is witnessed by the extra value added in KTB services to there customers. For example, Nice was one of the firsts in the country to introduce executives coaches with full onboard services hosted by steward/stewardess throughout the journey. A more luxurious sub-brand Nice++ was further launched in June 2005, the first executive coach in the country with individual LCD screen for its passengers to watch a selection of pre-programmed movie of their choice. Nice executive coaches are also the first and only kind in the country with its service pantry located at the front of the coach to give its passengers an airline feel, at the same time isolate its passengers from the undesirable frontal traffic noises and view. In KL Main Terminal and Copthorne Orchid Hotel in Singapore, â€Å"Nice† passengers c an relax and enjoy free snacks/drinks and also surf the net at the fully air-conditioned ‘executive lounges’ specially prepared for them. Marketing Strategy This part of the analysis will analyze the marketing aspect of the company. It will identify which customers it targets, how it reaches and win them over, as well as retention of existing customers. Market Segmentation KTB considers market segment based on 2 distinct groups or segments, which include Express buses and Sage buses. These segments are then further divided into geographic location, Income groups, and Demographic Segmentation This segment focuses on the income cleavage of it’s market and is divided into two groups i. e. 1)Deluxe Bus Traveler This segment caters to customer who want first class transportation services. The Nice Brand is included in this category †¢Nice Brand Nice† is still the largest operator in the country providing luxury/ executive coach services and is supported by more than 20,000 members that were registered as â€Å"Nice† loyalty card members. A journey with Nice executive coach is said to be a journey to remember. From the executive lounge to when the bus departs, the bus offers its passengers with on board entertainment and refreshment till their final destination. With Nice, you get to travel in style. Currently, â€Å"Nice† operates a total 35 executive coaches from Kuala Lumpur to Singapore, Penang, Kuantan and Ipoh. )Economy Bus Travelers This segment cater to customers who seek low or relatively low cost transportation means. Brands in this category include; Plusliner, Transnasional, and Cityliner Usage Situation Segmentation This segment focuses on the way the market/customer use the KTB services. The segment is divided into two groups that are further geographically broken down based on the four compa ny brands (Nice, Transnasional, Cityliner and the Plusliner brand). i. Express Buses This group serves long haul bus travelers, that is to say, from one state to another. Brands operating under this segment include, the Transnasional, Plusliner, and Nice brand †¢Nice Brand Currently, â€Å"Nice† operates a total 35 executive coaches from Kuala Lumpur to Singapore, Penang, Kuantan and Ipoh. †¢Transnasional This brand is further segmented based on geographical location or the routs it operated. These include Transnasional Express – Western Region This region monitors and manages all express routes within this region that stretches from Kuala Lumpur in the south, all the way to Kangar up north. This region operates 22 routes with a holding capacity of 215 buses. Transnasional Express – Eastern Region This region monitors and manages all express routes within this region plus all routes into Western Region and into the eastern part of Southern Region. The originating points in Eastern Region are mainly from Kota Bharu, Kuala Terengganu and Kuantan. This region operates 28 routes with a holding capacity of 210 buses/permits. Transnasional Express – Southern Region Similar to Eastern Region, this region monitors and manages all express routes within this region, all routes into Western Region and all routes between the western part of Southern Region and Eastern Region. The originating points in Southern Region are mainly from Johor Bahru, Melaka and Seremban. This region operates 28 routes with a holding capacity of 165 buses/permits. †¢Plusliner Plusliner economy coach is designed specifically for highway commuters. The most frequent highway express is also dubbed as King of the Highway, as a reflection of its efficient and timely services to the loyal passengers. Plusliner operates from Kuala Lumpur to main cities like Ipoh, Kuantan, Penang and from Seremban to Johor Bahru. Plusliner also serves other destinations like Kulim, Alor Setar, Bukit Kayu Hitam, Padang Besar, Lumut (Pangkor), Batu Gajah/Seri Iskandar and following a formal approval from the authority in mid May 2008, Plusliner now extends its express service from Ipoh via new Guthrie expressway to Shah Alam and to KLIA/LCCT. ii. Stage Buses This segment cater to short distance bus commuters, usually within metropolitan or city areas including housing areas. Brands operating under this segment include, the Cityliner brand †¢Cityliner Cityliner operate in several states/areas namely Kelantan, Selangor, Negeri Sembilan, Kedah and Seberang Prai. Since the birth of KTB in June 2007, the Cityliner operations are headed by a Division Head and are divided into five regions/territories as follows: Cityliner – Kelantan Operations Cityliner – Kelantan Operations is an entity by itself, only focusing on stage bus operations. The outfit has a capacity of running approximately 270 permits/buses. Cityliner – Northern Operations Led by a Regional Manager and focusing purely on the profitability of the stage bus operations in the northern part of Semenanjung. The outfit has a capacity of running approximately 185 permits/buses. Cityliner – Selangor Operations This outfit is now under one management team and led by a Regional Manager, has a capacity of running approximately 225 permits/buses. Cityliner – Negeri Sembilan Operations Besides running ordinary routes in housing areas and on main roads of Negeri Sembilan, the Cityliner buses here also serve the Kuala Lumpur International Airport (KLIA) and Low Cost Carrier Terminal (LCCT) from Seremban, Nilai and Banting. Cityliner – Pahang Operations Focuses on stage bus operations in Central Pahang covering Temerloh and Jerantut. Targeted Customer Public bus commuters -Low and medium income groups with incomes between RM300-5000 -Tourists traveling within Malaysia and those heading to Singapore. Market Mix With the help and application of the 4ps, we can determine the right strategy and tactics for targeting customer segments. †¢Product/Services KTB has endeavored to offer quality services to their loyal customers and has developed four brands to cater to the needs of it customers in the different segments and these include the Transnasional, Cityline, Plusliner and the Nice brand. i. Nice Brand This brand targets customers who would like a first class travel experience. Customers using the Nice brand get to travel in style, with on board entertainment, refreshment and everything being looked after, customers are hassle and worries free. ii. Transnational Transnasional has been a household brand for more than 3 decades, serving millions of satisfied passengers every year. The largest leading transport operator in Malaysia is also renowned as the icon and the leader of express bus industry. It provide public bus transportation for those traveling from one state to another or in between. ii. Cityliner Cityliner operate in several states/areas namely Kelantan, Selangor, Negeri Sembilan, Kedah and Seberang Prai. Since the birth of KTB in June 2007, the Cityliner operations are headed by a Division Head and are divided into five regions/territories as follows: †¢Position / Place KTB’s Transnasional has been positioned as the best express public bus operator in Malaysi a. Transnasional has been a household brand for more than 3 decades, serving millions of satisfied passengers every year. †¢Price Having opted for a mix of both a cost leadership and differentiation trategy, KTB ensure that it offers competitive prices for it’s less luxurious brands while at the same time demand a high premium for extra value added. Service pricing is greatly affected by the cost of fuel in addition to other costs of production such as employees salary and spare parts. Government policy is also another factor that determines the prices in the public transportation sector so as to take into count the low income groups that may not be able to afford the services as opposed to letting the fare be dictated by demand and supply †¢Promotion KTB as been effective in promoting it’s products by distinguishing its services from its competitors through their value added services with websites where customers can go to find out more about the company and the services it offers while making it easier to purchase tickets KTB has also offers great package deals that are designed to attract new customers as well as retain the exiting ones for example, the holiday packages offered to Nice brand members. Those registered as â€Å"Nice† loyalty card members can also accumulate points that can be exchanged with free tickets, merchandizes and holiday packages. Organizational change: †¢Safety As away to improve service quality and excellence especially in the safety arena, KTB introduced the new Transnasional Skyview Scania double decker buses from Scania, one of the leading manufactures of high end intercity buses. The buses are amongst the safest buses on Malaysian roads today, and feature top-of-the-line safety features such as Anti-lock Braking System (ABS); Traction Control and Scania Retarder, which offers effective braking through the use of a hydraulic retarder within the gearbox that offers safe and efficient braking. Also, in terms of safety, all new â€Å"Transnasional† buses met the European ECE R66 safety regulations on roof crash standards and equipped with front row seat belts since 2005. Transnasional is collaborating with Automotive Center of Excellence (ACE) in providing professional refresher training for all of its coach captains. Courses are conducted by certified ACE Instructors which require all coach captains to undergo both theoretical and practical classes. Those who have completed the efresher courses then are required to sit for an evaluation test to ensure the driving skills and knowledge are well applied before Certificate of Competency is issued to the participants. †¢Alternative Source of Fuel With the rising environmental concerns and increasing fuel prices, KTB with transnasional and Cityliner opted for Compressed Natural Gas (CNG) technology that allows the buses to run on an alternative source of fuel (Natural Gas). This kind of fuel is not only cost efficien t but is also less toxic to the environment. †¢Energy Saving The new buses with the capacity of 69 sitting passengers, the highest for any interstate bus service previously served by regular single deck buses with capacity of up to 44 passengers is Transnasional’s newest interstate service and follows a trend of having a high passenger capacity double-decker bus to reduce total energy consumption. †¢Value The company has added more value to its customers by offering quality services to meet the customers’ expectations, improved the convenience at which bus tickets can be purchased whether online or from various agents. Transnasional tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are Petronas fuel station operators. This, in turn has increased customer satisfaction. †¢Innovation In terms of product innovation, the new 2007 version of e-ticketing for â€Å"Transnasional† is able to place a passenger who prefers to sit beside his/her own gender. â€Å"Transnasional† is still the first and only bus operator to introduce adjustable headrest for its newly launched economy express 41-seater single-deck â€Å"Club Class† coach. Again â€Å"Transnasional† is the first in the country to introduce a high capacity economy express with its 69-seater double-deck â€Å"Skyview†. Not only it can carry more passengers, its â€Å"twin-configuration† seats can be separated to create more shoulder room for each and every passenger on board. The 24-tonne tri-axle coach with its unique design has taken into consideration all safety aspects for example, an emergency door on the upper deck that is in-line with the hidden ladder placed at the bottom deck, two escape hatches on the roof, a tapered roof design for greater stability, rear entry staircase, and seat belts for certain rows. Due to the fact that CNG cost is still cheaper than diesel, 74 CNG buses designed specifically for express type operations are planned to be on the road. These buses will be deployed mostly in the Transnasional southern Region in view of the potential availability of CNG’s refueling infrastructure. For Western Region, by relocating their main depot from Kuala Lumpur to Kajang in July 2007. Level of Hierarchy KTB’s organizational structure is one with a wide span of control that adopts a traditional approach. The organizational structure is based on or divided according to the company’s various business subsidiaries and there particular operations in terms of territory. These subsidiaries are headed by a Division Head or Regional General Managers. Employee Rewards One of the rewards for working with KTB are the free training programs they offer especially to their coach captains. Transnasional is collaborating with Automotive Center of Excellence (ACE) in providing professional refresher training for all of its coach captains. Courses are conducted by certified ACE Instructors which require all coach captains to undergo both theoretical and practical classes. Conflicts and Issues †¢Unfair pay. This is believed to be one of the most ongoing problems at KTB where most of the drivers were not ok with the payments they were receiving as salary for the work being done daily. Due to the many cases where at times you would find the bus station empty that’s was believed to be the problem but the resolved it and now the buses are working well with their drivers ready on time and happy with the salary increase. Long queues. This was another problem that was faced with the bus services where you had some people complaining that some people where not paying for the services others claiming that the drivers cheat them. So the introduction of e-ticketing was introduced as another way to legitimize the work so everyone feels comfortable and free in the bus so as a safe journey to passengers going on long distances. †¢Theft. This was another problem faced with the KTB buses. specially at the stations themselves where some people would come in disguise as passengers waiting for the bus and in the end they would end up stealing property from others like phones, bags, shoes, money which resulted to the stationing of police officers in most of the boarding zones, bus stations in a way to stop the theft so to ensure safety for the bus en the people travelling which is why it is one of the most reasons as to why it is recognized in Malaysia because it takes care of its passengers. Time. This is another problem that was not implemented upon till of recent when it was fixed where most passengers never knew when most of the buses where coming in. that led to some people cursing because they were never inf ormed but now as I speak buses come by six o’clock, till midnight and they take 30 minutes each to report to the station. Recommendations Some of the recommendations I would make to include; †¢One Price. Fare increases could be determined by taking into account the turnover of bus operators and the cost analysis trend with that of the revenue as practiced in Europe. The turnover must be higher than the interest rate (loan) and the Consumer Price Index (CPI) to enable bus companies to make profit. †¢On Energy efficiency. With the rising environmental concerns and increasing fuel prices, KTB should opted for the use of Compressed Natural Gas (CNG) technology which allows the buses to run on Natural Gas in not just some of it’s buses by all of it’s fleet and is also a means to reduce costs Reference http://www. ktb. com. my/knowingUs_aboutUs. htm http://www. scania. com. my/About_Scania/Events/TransnasionalSkyview. asp http://web6. bernama. com/client/kpdnhep/news. php? id=349852lang=encat= http://www. travelportal. info/asia/malaysia/transport-in-malaysia Konsortium Transnational Berhad free essay sample Since the birth of KTB in June 15, 2007 when it made its debut on Bursa Malaysia, it has maintained high service standard. The stage and express bus operations provide the most extensive coverage throughout Peninsular Malaysia, covering almost all major cities and towns as well as Singapore. The nationwide network is serviced by a fleet of more than 1,500 buses that covers more than 250 routes, generating more than 1,000 trips daily and this translates to around 60 million passengers a year. To date, KTB commands the largest market share, with ‘Transnasional’ being the leader in the express bus industry in Peninsular Malaysia. Efficient and timely services ii. Possession of Compressed Natural Gas (CNG) technology iii. Totally brand new and enjoyable traveling experience- First in the country with adjustable head rests iv. Safe and affordable public transportation v. Well qualifies employees personnel vi. Possession of high capacity double decker buses vii. Good reputation- Its known as the leader in the express bus industry viii. Excellent customer service- Dedicated officers- Always ready to assist and answer any customer questions regards it services. ix. Convenience. Tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are Petronas fuel station operators. Weakness i. Luck of undifferentiated services in relation to your competitors. ii. Damaged reputation caused by an unsatisfied customer. iii. Unfeasible infrastructure to cater for the handicapped Opportunities i. An unfulfilled customers needs from other bus operators ii. New technology that improves the companies service offering. iii. Increase in passengers using public means of transport due to high fuel prices iv. oosening of regulations by government agencies which originally limited the number of bus operators Threats i. Substitution of bus services for private vehicles ii. The growing concern of global warming and the need for alternative cleaner fuel sources which will only result in high company costs iii. Heavy competition in the industry with more than 200 stage bus operators and from other alternative means of transport such as cab services, trains, air transportation, etc. iv. Tougher government regulations on privately own public bus service providers, example safety standards v. Fluctuating fuel prices i. The rising costs of operations due to hikes in fuel, vehicle insurance premiums, bus terminal rentals, vehicle tires as well as parts and maintenance costs which have. vii. Unhealthy industry especially when it comes to the price structure in Malaysia. Countries like Indonesia raise fares every six months and there are also regular fare hikes in Singapore. TOWS Matrix This analysis assists the company identifies SWOT analysis factors it should best pursue so as to compete better in the industry, whether its the competitive advantage strengths, more lucrative opportunities or and upcoming opportunities. OpportunitiesThreats Strength. SO Strategies i. KTB’s excellent customer service should be able to attract unsatisfied customers from rival companies ii. New technology will be able to enhance customers travel experience iii. KTB’s differentiated services will help attract new customer over their competitors iv. ST Strategies i. KTB’s effective and timely services won’t deter off commuters. ii. Possession of Compressed Natural Gas (CNG) technology which is less toxic to the environment. iii. KTB’s differentiation strategy will come in handy in creating a competitive advantage iv. KTB has set the bench mark in travel safety through maintenance v. High capacity double decker buses which have helped minimize costs WeaknessWO Strategies Overcome weaknesses by taking advantage of opportunities WT Strategies Minimize weaknesses and reduce threats Analyze Your Findings. KTB’s strategy appears to be well-matched to its industry and competitive conditions. KTB’ Transnasional is the industries leader in the express bus division. The company’s strategy appears to be based on a mixture of differentiating features, cost leadership and service strengths and competitive capabilities. A key element of its strategy is an emphasis on providing exceptional customer service. Since commuters were dissatisfied with the services offered by other public bus operators. Business Level Strategy In Malaysia, KTB’s transnasional is positioned as the number one brand in the express bus services. Currently KTB is made up of four independent business units and these include: Transnasional, Nice, Plusliner and Cityliner. Each of these business units is competing in different market segments of the transportation industry in order to tailor the entire KTB services to best suit each customers’ needs and all four business units have separate accountability for their financial statements. KBT as the parent company offers all strategic leadership, a mix of two different business strategies to best suits their target market and the survival of the company in the industry. In general, KTB applies both the cost leadership and differentiation strategy within there business units. Transnasional, which applies a cost leadership strategy is Malaysia’s leading bus operator in the express industry. To use a cost leadership strategy, operations have to maximize economy of scale, reduce costs, or use volume to maintain profit. The application of the cost leadership strategy by KTB is evident with the recent launch of the Transnasional Skyview Scania double decker buses. The new buses, with the capacity of 69 sitting passengers, the highest for any interstate bus service as opposed to the 44 passenger capacity. Having a high passenger capacity bus will assist the company minimize total operating costs. The engines of these new buses have been designed to take on as less stress as possible thereby enabling them to be more reliable and consume less fuel. Also, as part of the cost reduction endeavor, KTB with Transnasional opted for Compressed Natural Gas (CNG) technology that allows the buses to run on an Natural Gas. This kind of fuel is not only cost efficient but is also less toxic to the environment. The differentiation strategy which features a superior product/service type of competitive advantage keyed to higher quality, better performance, wider selection, value-added services is witnessed by the extra value added in KTB services to there customers. For example, Nice was one of the firsts in the country to introduce executives coaches with full onboard services hosted by steward/stewardess throughout the journey. A more luxurious sub-brand Nice++ was further launched in June 2005, the first executive coach in the country with individual LCD screen for its passengers to watch a selection of pre-programmed movie of their choice. Nice executive coaches are also the first and only kind in the country with its service pantry located at the front of the coach to give its passengers an airline feel, at the same time isolate its passengers from the undesirable frontal traffic noises and view. In KL Main Terminal and Copthorne Orchid Hotel in Singapore, â€Å"Nice† passengers c an relax and enjoy free snacks/drinks and also surf the net at the fully air-conditioned ‘executive lounges’ specially prepared for them. Marketing Strategy This part of the analysis will analyze the marketing aspect of the company. It will identify which customers it targets, how it reaches and win them over, as well as retention of existing customers. Market Segmentation KTB considers market segment based on 2 distinct groups or segments, which include Express buses and Sage buses. These segments are then further divided into geographic location, Income groups, and Demographic Segmentation This segment focuses on the income cleavage of it’s market and is divided into two groups i. e. 1)Deluxe Bus Traveler This segment caters to customer who want first class transportation services. The Nice Brand is included in this category †¢Nice Brand Nice† is still the largest operator in the country providing luxury/ executive coach services and is supported by more than 20,000 members that were registered as â€Å"Nice† loyalty card members. A journey with Nice executive coach is said to be a journey to remember. From the executive lounge to when the bus departs, the bus offers its passengers with on board entertainment and refreshment till their final destination. With Nice, you get to travel in style. Currently, â€Å"Nice† operates a total 35 executive coaches from Kuala Lumpur to Singapore, Penang, Kuantan and Ipoh. )Economy Bus Travelers This segment cater to customers who seek low or relatively low cost transportation means. Brands in this category include; Plusliner, Transnasional, and Cityliner Usage Situation Segmentation This segment focuses on the way the market/customer use the KTB services. The segment is divided into two groups that are further geographically broken down based on the four compa ny brands (Nice, Transnasional, Cityliner and the Plusliner brand). i. Express Buses This group serves long haul bus travelers, that is to say, from one state to another. Brands operating under this segment include, the Transnasional, Plusliner, and Nice brand †¢Nice Brand Currently, â€Å"Nice† operates a total 35 executive coaches from Kuala Lumpur to Singapore, Penang, Kuantan and Ipoh. †¢Transnasional This brand is further segmented based on geographical location or the routs it operated. These include Transnasional Express – Western Region This region monitors and manages all express routes within this region that stretches from Kuala Lumpur in the south, all the way to Kangar up north. This region operates 22 routes with a holding capacity of 215 buses. Transnasional Express – Eastern Region This region monitors and manages all express routes within this region plus all routes into Western Region and into the eastern part of Southern Region. The originating points in Eastern Region are mainly from Kota Bharu, Kuala Terengganu and Kuantan. This region operates 28 routes with a holding capacity of 210 buses/permits. Transnasional Express – Southern Region Similar to Eastern Region, this region monitors and manages all express routes within this region, all routes into Western Region and all routes between the western part of Southern Region and Eastern Region. The originating points in Southern Region are mainly from Johor Bahru, Melaka and Seremban. This region operates 28 routes with a holding capacity of 165 buses/permits. †¢Plusliner Plusliner economy coach is designed specifically for highway commuters. The most frequent highway express is also dubbed as King of the Highway, as a reflection of its efficient and timely services to the loyal passengers. Plusliner operates from Kuala Lumpur to main cities like Ipoh, Kuantan, Penang and from Seremban to Johor Bahru. Plusliner also serves other destinations like Kulim, Alor Setar, Bukit Kayu Hitam, Padang Besar, Lumut (Pangkor), Batu Gajah/Seri Iskandar and following a formal approval from the authority in mid May 2008, Plusliner now extends its express service from Ipoh via new Guthrie expressway to Shah Alam and to KLIA/LCCT. ii. Stage Buses This segment cater to short distance bus commuters, usually within metropolitan or city areas including housing areas. Brands operating under this segment include, the Cityliner brand †¢Cityliner Cityliner operate in several states/areas namely Kelantan, Selangor, Negeri Sembilan, Kedah and Seberang Prai. Since the birth of KTB in June 2007, the Cityliner operations are headed by a Division Head and are divided into five regions/territories as follows: Cityliner – Kelantan Operations Cityliner – Kelantan Operations is an entity by itself, only focusing on stage bus operations. The outfit has a capacity of running approximately 270 permits/buses. Cityliner – Northern Operations Led by a Regional Manager and focusing purely on the profitability of the stage bus operations in the northern part of Semenanjung. The outfit has a capacity of running approximately 185 permits/buses. Cityliner – Selangor Operations This outfit is now under one management team and led by a Regional Manager, has a capacity of running approximately 225 permits/buses. Cityliner – Negeri Sembilan Operations Besides running ordinary routes in housing areas and on main roads of Negeri Sembilan, the Cityliner buses here also serve the Kuala Lumpur International Airport (KLIA) and Low Cost Carrier Terminal (LCCT) from Seremban, Nilai and Banting. Cityliner – Pahang Operations Focuses on stage bus operations in Central Pahang covering Temerloh and Jerantut. Targeted Customer Public bus commuters -Low and medium income groups with incomes between RM300-5000 -Tourists traveling within Malaysia and those heading to Singapore. Market Mix With the help and application of the 4ps, we can determine the right strategy and tactics for targeting customer segments. †¢Product/Services KTB has endeavored to offer quality services to their loyal customers and has developed four brands to cater to the needs of it customers in the different segments and these include the Transnasional, Cityline, Plusliner and the Nice brand. i. Nice Brand This brand targets customers who would like a first class travel experience. Customers using the Nice brand get to travel in style, with on board entertainment, refreshment and everything being looked after, customers are hassle and worries free. ii. Transnational Transnasional has been a household brand for more than 3 decades, serving millions of satisfied passengers every year. The largest leading transport operator in Malaysia is also renowned as the icon and the leader of express bus industry. It provide public bus transportation for those traveling from one state to another or in between. ii. Cityliner Cityliner operate in several states/areas namely Kelantan, Selangor, Negeri Sembilan, Kedah and Seberang Prai. Since the birth of KTB in June 2007, the Cityliner operations are headed by a Division Head and are divided into five regions/territories as follows: †¢Position / Place KTB’s Transnasional has been positioned as the best express public bus operator in Malaysia. Transnasional has been a household brand for more than 3 decades, serving millions of satisfied passengers every year. †¢Price Having opted for a mix of both a cost leadership and differentiation trategy, KTB ensure that it offers competitive prices for it’s less luxurious brands while at the same time demand a high premium for extra value added. Service pricing is greatly affected by the cost of fuel in addition to other costs of production such as employees salary and spare parts. Government policy is also another factor that determines the prices in the public transportation sector so as to take into count the low income groups that may not be able to afford the services as opposed to letting the fare be dictated by demand and supply †¢Promotion KTB as been effective in promoting it’s products by distinguishing its services from its competitors through their value added services with websites where customers can go to find out more about the company and the services it offers while making it easier to purchase tickets KTB has also offers great package deals that are designed to attract new customers as well as retain the exiting ones for example, the holiday packages offered to Nice brand members. Those registered as â€Å"Nice† loyalty card members can also accumulate points that can be exchanged with free tickets, merchandizes and holiday packages. Organizational change: †¢Safety As away to improve service quality and excellence especially in the safety arena, KTB introduced the new Transnasional Skyview Scania double decker buses from Scania, one of the leading manufactures of high end intercity buses. The buses are amongst the safest buses on Malaysian roads today, and feature top-of-the-line safety features such as Anti-lock Braking System (ABS); Traction Control and Scania Retarder, which offers effective braking through the use of a hydraulic retarder within the gearbox that offers safe and efficient braking. Also, in terms of safety, all new â€Å"Transnasional† buses met the European ECE R66 safety regulations on roof crash standards and equipped with front row seat belts since 2005. Transnasional is collaborating with Automotive Center of Excellence (ACE) in providing professional refresher training for all of its coach captains. Courses are conducted by certified ACE Instructors which require all coach captains to undergo both theoretical and practical classes. Those who have completed the efresher courses then are required to sit for an evaluation test to ensure the driving skills and knowledge are well applied before Certificate of Competency is issued to the participants. †¢Alternative Source of Fuel With the rising environmental concerns and increasing fuel prices, KTB with transnasional and Cityliner opted for Compressed Natural Gas (CNG) technology that allows the buses to run on an alternative source of fuel (Natural Gas). This kind of fuel is not only cost efficien t but is also less toxic to the environment. †¢Energy Saving The new buses with the capacity of 69 sitting passengers, the highest for any interstate bus service previously served by regular single deck buses with capacity of up to 44 passengers is Transnasional’s newest interstate service and follows a trend of having a high passenger capacity double-decker bus to reduce total energy consumption. †¢Value The company has added more value to its customers by offering quality services to meet the customers’ expectations, improved the convenience at which bus tickets can be purchased whether online or from various agents. Transnasional tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are Petronas fuel station operators. This, in turn has increased customer satisfaction. †¢Innovation In terms of product innovation, the new 2007 version of e-ticketing for â€Å"Transnasional† is able to place a passenger who prefers to sit beside his/her own gender. â€Å"Transnasional† is still the first and only bus operator to introduce adjustable headrest for its newly launched economy express 41-seater single-deck â€Å"Club Class† coach. Again â€Å"Transnasional† is the first in the country to introduce a high capacity economy express with its 69-seater double-deck â€Å"Skyview†. Not only it can carry more passengers, its â€Å"twin-configuration† seats can be separated to create more shoulder room for each and every passenger on board. The 24-tonne tri-axle coach with its unique design has taken into consideration all safety aspects for example, an emergency door on the upper deck that is in-line with the hidden ladder placed at the bottom deck, two escape hatches on the roof, a tapered roof design for greater stability, rear entry staircase, and seat belts for certain rows. Due to the fact that CNG cost is still cheaper than diesel, 74 CNG buses designed specifically for express type operations are planned to be on the road. These buses will be deployed mostly in the Transnasional southern Region in view of the potential availability of CNG’s refueling infrastructure. For Western Region, by relocating their main depot from Kuala Lumpur to Kajang in July 2007. Level of Hierarchy KTB’s organizational structure is one with a wide span of control that adopts a traditional approach. The organizational structure is based on or divided according to the company’s various business subsidiaries and there particular operations in terms of territory. These subsidiaries are headed by a Division Head or Regional General Managers. Employee Rewards One of the rewards for working with KTB are the free training programs they offer especially to their coach captains. Transnasional is collaborating with Automotive Center of Excellence (ACE) in providing professional refresher training for all of its coach captains. Courses are conducted by certified ACE Instructors which require all coach captains to undergo both theoretical and practical classes. Conflicts and Issues †¢Unfair pay. This is believed to be one of the most ongoing problems at KTB where most of the drivers were not ok with the payments they were receiving as salary for the work being done daily. Due to the many cases where at times you would find the bus station empty that’s was believed to be the problem but the resolved it and now the buses are working well with their drivers ready on time and happy with the salary increase. Long queues. This was another problem that was faced with the bus services where you had some people complaining that some people where not paying for the services others claiming that the drivers cheat them. So the introduction of e-ticketing was introduced as another way to legitimize the work so everyone feels comfortable and free in the bus so as a safe journey to passengers going on long dist ances. †¢Theft. This was another problem faced with the KTB buses. specially at the stations themselves where some people would come in disguise as passengers waiting for the bus and in the end they would end up stealing property from others like phones, bags, shoes, money which resulted to the stationing of police officers in most of the boarding zones, bus stations in a way to stop the theft so to ensure safety for the bus en the people travelling which is why it is one of the most reasons as to why it is recognized in Malaysia because it takes care of its passengers. Time. This is another problem that was not implemented upon till of recent when it was fixed where most passengers never knew when most of the buses where coming in. that led to some people cursing because they were never informed but now as I speak buses come by six o’clock, till midnight and they take 30 minutes each to report to the station. Recommendations Some of the recommendations I would make to include; †¢One Price. Fare increases could be determined by taking into account the turnover of bus operators and the cost analysis trend with that of the revenue as practiced in Europe. The turnover must be higher than the interest rate (loan) and the Consumer Price Index (CPI) to enable bus companies to make profit.