The RATP Marketing Strategy 2007 - 2010 Isabelle Bachmann - 22 January 2008

Context of The Paris region Public transport and our market Summary Context of The Paris region Public transport and our market Global Strategy: our key routes Our different policies and action plan Conclusion First of all, I ‘ll speak about Public transport in paris region and then our market which will give you a better understanding on our marketing strategy. Then, I’ll introduce the main axis of our new mkg strategy After this, I’will describe our different policies and actions plan , with examples to illustrate the actions. And to finsh with a conclusion

Marketing Strategy 2007-2010 Context and our market

Context : Urbanization First ring: 4 million Inhabitants; average density population Paris: 2 million Inhabitants; high density population Paris region, 11 million Inhabitants ; 18 % of the French population. The scond ring holds The fastest growth population of Paris region. Second ring: 5 million Inhabitants; low density population

Context : Mobility and journeys 33 % of Journeys in the First ring ( increase) 25% of Journeys in Paris and first ring ( stable) The most important part of Journeys are made in the suburbs ( specially in the second ring ). From suburb to suburb . The journeys are increasing in the suburbs but they are stable in Paris. And if we take a quick look at the Public transport network, we get a better idea of why the market share is stable. 42% of Journeys for Second ring (increase)

Context : network area Most of the Public transport offer is concentrate in Paris and for journeys from the suburbs to Paris ( or for going to Paris). There is a big lack in Public transport lack for concentric journeys in suburbs , where the potential of journeys are.

Context : a competitive market The Mobility market is competitive: people can choose their mean of transportation 67 % 29 % 70% of our customers use private car and Public transport .(mixed users) Only 20% of our customers are captive . The global market share in the Paris region for PT is 29% But in the city , the market share is higher: it represent 63% for PT 28% for private cars and 6.5% for 2 motorized Wheels . 63 % Paris

Context: Our customers Penetration rate: 83% 7.3 million of Paris region inhabitants used Ratp at least once a year Some quantitative data about our customers 44% of regular customers ( use nearly every days of the week) 40% of casual customers ( use at least 3 times a week) 16% of rare customers (use less than 2 times a week) We focus on regular and casual customers

Our customers are more and more demanding Our customers are changing Context : Our customers We know that: Our customers are more and more demanding Our customers are changing Our future customers are already using RATP Then, qualitative datas on our market: whow are our customers ?.

2- What strategy in that kind of Context ? Marketing Strategy 2007-2010 2- What strategy in that kind of Context ?

3 mains routes Enhance the Average Revenu Per User The global strategy 3 mains routes Enhance the Average Revenu Per User Increase the number of customers Improve the image and the attribution of our Brand at our company For our new strategy, we decided on 3 main Aims

Enhance the Average Revenu Per User Action plan: Continue the loyalty program - Improve the relationship with our customers: create and customize new services First route : 2 mains ways .

Enhance the average revenu per user First Action Plan: Continue our Loyalty program for annual pass holders For the young population : Imagine’ R (annual pass )  For the « commuters » : Integrale (annual pass) Annual pass holders 790 000 for Imagine ‘R 840 000 for Integrale. 1.6 million annual customers

Enhance the average revenu per user « Imagine’ R » Loyalty program Good deals, Special offers with discount, Special events A Dedicated Website And the advantages of the year pass: Free journeys on all the zonal fares during week end and vacations Special price What is the Loyalty program for young persons ?

Example: Good deals of Imagine R program: Enhance the average income per user Example: Good deals of Imagine R program: the good deals can only be found on on the website

Enhance the average revenu per user Intégrale Loyalty program Welcome pack, Special offers with rebates , Special events A Dedicated Website And the advantages of the year pass: Lost insurance, possibility of ajournement , direct debit Special price ( equals 10.3 monthly pass) What is the loyalty program for commuters ? Nearly the same as Imagine’R but with specific offers and the advantages of the travel card are different. The price is not as attractive as we would like . It’s more expensive than in other cities such as like Roma .

Enhance the average income per user Example of special offers for « Intégrale « holders Example

Second Action Plan : Improve the relationship with Ratp’s customers Enhance the average revenu per user Second Action Plan : Improve the relationship with Ratp’s customers  Create innovative services and products … Cutomized services and relationships 2 Main ways

 Create innovative services and products Enhance the average income per user  Create innovative services and products New version of « my RATP with me »: Mobile Internet Mobile internet because more than 90% of our customers owns a mobile; it can create traffic and revenues. Example: Mobile internet which deliver a lot of information: real time information on traffic, schedules, routes…. We also want to create a new website . Create a new website

 Customize services and relationship Enhance the average revenu per user  Customize services and relationship RATP ADOPTED A NEW SEGMENTED APPROACH OF ITS RELATIONSHIP MANAGEMENT BASED ON INDIVIDUALIZATION AND ON A BIGGER MOBILIZATION OF ITS FRONT LINE STAFF MEMBERS 3 examples of new outlets which deliver tickets and information « le comptoir » to give assistance + SALES for casual customers « LE CLUB » for season pass holders

Increase the number of customers Increase the numbers of customers Increase the number of customers Actions: Target high profil customers (tourists, ederlies ) - Increase the use of Public transport on specific areas Second axis or route

Target high profil customers potential: Increase the number of customers Target high profil customers potential:  New strategy for the tourits RATP: partnership with the City . It contributes to the attractiveness and the business development of the city The city of Paris : 44 million visitors annually; a « magnet » for tourists.

For the Ederlies Improve services create dedicated tickets for them Increase the number of customers Target high profil customers potential For the Ederlies Improve services create dedicated tickets for them We consider that «  what is good for ederlies is good for all our customers ». So if we improve the services for them, it will be good for all our customers. The second way is: there is no special fare for them and we want to increase their uses.

 Increase the use of PT on specific areas: “local marketing” Increase the number of customers  Increase the use of PT on specific areas: “local marketing” Carry out diagnostics and surveys to know the reasons why we do not perform Set up local action plans Eg: Improve Public Transport Information Often, we can see discover that if the population does not use Pt it is because they dont have enough information or they dont understand the network ( because they do not know how to read)

Improve the image and attribution of our brand Action : - create positive attentions with surprises Third axis or route of the strategy

create positive surprises (break the routine) for our customers improve the image create positive surprises (break the routine) for our customers Customer Satisfaction RATP to communicate positives Surprised attribute at RATP communication Lauching new products We want to create positvive surprises to break the routine. Why ? If we have a look on this customer satisfaction graph, we can see that: The usual trend of satisfaction level goes down falls with time, If we launch new products or communicate, the satisfaction level goes up ( rises) but it go down again with time. But, if we create postive surprises the satisfaction level doesnt’ fall with time. Usual Trend Time

An Example of a postive surprise: an animation dedicated for our customers

Our new strategy started in 2007 we can not give you the results. Conclusion of marketing strategy 2007-2010 Our new strategy started in 2007 we can not give you the results. But we can say : - the Loyalty program is a real sucess , - the revenu per user has increased - The boarding committee increased our budget to launch news plans and actions. We have to give the return on Investment for each action. The loyalty program is a success because the number of annual pass holders was multiplied by 3 in 6 years.