Passenger Affordability of Modern Bus and Coach By Synergy Management Advisors Private limited Synergy Management Advisors P Limited

Market share of the Modern Buses in India CONTENTS Market share of the Modern Buses in India Why Should the passenger travel by the Modern Buses? Affordability ECO system creation for supporting affordability The bottom of the Pyramid - Modified Role of the stake holders

Market share of the Modern Buses in India MULTI AXLE The market Share is very insignificant

The brand image that the modern buses have built for themselves are larger than life. The volumes insignificant….. But talked about a lot….. We applaud our self, for how they have revolutionized the Indian passenger travel But ……

is travelling on top of three wheelers! On top of Buses…. The India we know… is travelling on top of three wheelers! On top of Buses….

The India we know…

Travelling in a bus is luxury! Travelling in a luxury bus is utopian for the masses!

Why do we need Modern buses? Let’s spend time is discussing what is selling… Why do we force Modern Buses on the society? Why risk on the viability of the business model with suck huge investments?

Let’s Ponder on these questions Why should the passenger go in for a modern bus when they are happy with the existing buses? Are they happy? Or we create a situation which leads them to imagine so? Why should they pay more for what they think they don’t deserve? Who decides what they should deserve? How do we make them aspire for the comfort? Transportation is just a basic need .. A link … Convenience , Comfort , Safety are not in the list to be addressed? If so, then, Why are the trains always over booked?

Ponder on these questions Who is responsible for this status of the passengers? The passengers… the environment… the regulators… the manufacturers… Who is responsible for driving the passengers away from Road travel? Is it the affordability or the availability the issue?

Some examples from other Industries The Telecom Sector… -- Land Lines 40 Million 2002 – Land Lines 40 Million Mobile 1 Million 2012 – Land Lines 31 Million Mobiles 929 Million !!! Cost of acquiring and maintaining land line far cheaper than Mobile…. Availability …… Affordability … Aspiring India ??? Magic….

Some examples from other Industries

Some examples from other Industries Today’s INDIA

Some examples from other Industries Vijay Govindarajan, professor of international business at Tuck School of Business at Dartmouth College in New Hampshire, "We are finally beginning to see that rural India has cash and is able to spend at the same time,“ "This is a remarkable combination for companies."

Some examples from other Industries Two-thirds of the country's one billion consumers live in rural India, where almost half of the national income is generated. A report by the Confederation of Indian Industries, estimates that the country's rural consumer market generated US$425 billion of revenue, up from US$266 billion the previous year. The big reason for the growth is that India's rural consumers are steadily gaining more spending power. The number of rural households earning less than US$760 a year is down from 65% to 24% since 1993, while those with an income of US$1,525 have more than doubled from 22% to 46%. Combine these factors with improved roads and other infrastructure in rural India, and it's easy to see rural India's attraction.

Some examples from other Industries

Some examples from other Industries Today’s INDIA

Affordability or Availability Affordability is a derivative of Ability and Willingness Ability is not always absolute -- as seen in the slides before --- it is a matter of priority If Comfort is not important – then just the ability to acquire comfort will not translate to paying for comfort. Therefore ability again translates more towards priority accorded or say willingness … Affordability is more about willingness….

Affordability or Availability Willingness to travel in a Modern Bus Willingness to accord importance to Safety…. Willingness to accord importance to Comfort…. Willingness to accord importance to Convenience….. But Where is the availability?

But Where is the availability? Prof C K Prahlad spoke about the bottom of the Pyramid…. Address the lowest of the economic strata using the best in technology at affordable price… You will hit a GOLD MINE….. HUL did it…. LG is doing it….. A host of the companies across the world doing it…. This is not easy … one needs to sweat it out before one can reap benefits… BUT the Bus Industry is Lucky… We don’t have to do it……..

BUT the Bus Industry is Lucky… We don’t have to do it…….. Today we are addressing only the top of the Pyramid .. A long way to go to the bottom of the GOLD MINE! To get to the buy in of the customer, we need to first create the ECO system that can sustain the Modern Bus

We need to create a ECO system that can sustain the Modern Bus The telecom industry did it The FMCG did it…. We need to do it…… We need to create a ECO system that can sustain the Modern Bus An ECO system that integrates all the stake holders of the BUS Industry

By not being assertive and effective in improving the Bus industry in the country, we allowed the two wheeler industry to grow leaps and bounds congesting the roads, the atmosphere and the risking the lives of lakhs of people. The entry level car industry also grew on the failure of the bus industry. The aspirations of comfort, convenience and safety of people pushed them to move to acquire independent vehicles. Today the roads and atmosphere of many cites are chocked. It is the responsibility of the bus industry to move in fast and give better living conditions to the aspiring millions in the country

Let us save our cites… get in the Modern buses which will answer the aspirations of the millions. We have clear examples of this happening with BMTC of Bangalore.. People have embraced and patronized the modern buses. All the stake holders of the bus industry have to come together and work towards giving Indians a better way to travel and commute. The Government, The regulators, The Manufacturers, The Transport companies, The fleet owners, Service providers, The en-route support systems… all have to pitch in… It’s a revolution that we need to bring in….

You don’t have to compete with each other…. The market is so large that we just cannot support it…. The issue is .. We have become blind to the real problem… The problem to give a better living condition… The Indian people deserve it and we cannot shy away from our responsibility to serve…. The Modern Buses are now here and will sustain – The shear aspirations of the Indian Customers for a better life will force the sustenance of the modern buses.

If we take the lead, we can take the credit……..

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