MRC HK MTR overview

1 Company Overview Hong Kong, one of the most highest population density cities, public transportation network has been well developed in this city. The only company, The MTR Corporation, operates the train service. The MTR was established in 1975 as the Mass Transit Railway Corporation to built an urban metro system to help meet Hong Kongs public transport requirements. The Hong Kong Government solely owned the corporation. The company was re-established as the MTR Corporation Limited in June 2000. A few months later, the company is also listed on the stock market in Hong Kong as well.

Another government-owned rail operator, the Kowloon-canton Railway Corporation, was merged into the MTR in Dec 2007. Now the company averagely carry 4. 9 million passengers every weekday. Respond to the feedback from the public after they increasing the fare in 2012. The company have estimated they will earn 6. 7 hundred million profit more from the fare increasing. The company has launched a series of promotion campaign in order to give back the profit they earn from the fare different to the communities. 1. 1 Marketing Campaign ‘Ride 10 get 1 free’, promotion campaign launched last year in 2012 from June to December.

Travelers can get a single Journey ticket for free when they take 10 fare- paying Journeys on MTR except Airport express, Light Rail within every Monday to Friday. Then they can redeem their ticket on or before Sunday in the same week at any Customer Service Centres or designated counters at stations and MTR Malls. The offer is only applicable to Octopus card customer. The single Journey ticket is validating for one-month only and can be use for any Journey except Airport Express, Light Rail or First Class in East Rail Line. 1. 2 Objectives The objectives for the ‘Ride 10 get 1 free’ campaign can be divided to two parts: 1. 1 To take up the corporate social responsibility: Instead of only making profit, MTR had announced the total 6. 7 hundred million estimated extra profits from price increase proposal would return to the public by differences promotions. 1. 2. 2 Increase passenger volume: There are so many people they will take MTR in the morning, take bus when they finish their work. By offering “Ride 10 get 1 free” campaign, passenger will choose to take MTR rather than bus as they can get 1 free ticket if they can take 10 ride within one week. Market campaigns mostly are launch to draw customers’ awareness or reate customers needs of that product.

However, this campaign aims to encourage customers only use them as their daily transportation rather than taking others transport so that they can enjoy the free Journey ticket. Further elaborate the objectives in terms of SMART criteria below. Specific: the objective are the company would like to return the profit gain from the fare increasing. Measureable: to help customer save around 671 millions by offering a series of promotion campaign from Jun 2012 to May 2013. Achievable: MTR average carries 4. 9millions passenger per day. Most of the customer can enjoy different promotion offers.

Realistic: the campaign is realistic because under this promotion period, even using the new fare basis. The fares that the passenger actually paying will be lower then the fare before. Audience The target audience of this new promotion campaign is the major commuter. As per the Market Shares of Franchised Public Transport in Hong Kong, [Sources: Http://www. mtr. com. hk] MTR currently holds 45. 4% of the Public transport market. Through this campaign, MTR should be able to draw more commuter take MTR to work instead of taking other public transport.

So that the commuter can fulfill the requirement of this campaign – ide 10 fare-paying Journey within Monday to Friday, to get a single Journey ticket. Except normal Adult fare customer, this promotion campaign also cover the rest of the market include students, elderly, child and disabilities person. MTR also provide free concessionary ticket for them if they can fulfill the requirement as well, so that to make the objective more achievable. 2 Campaign Strategy Marketing Communications Strategy can normally be divided into three different types: Pull, Push and Profile.

As per Studio Wide (2010), in order to create a satisfactory marketing mix that attract customers to purchase their product, Corporation may need to balance out those strategies. As using only one strategy may not be provide as good of a return as expected for, therefore a mixture of strategies may help in achieving a campaign’s goal. McCabe 0 suggested that the pull strategy is more likely to be communicating with the end-users and to entice them in buying the product. Also, pull strategy often used as a combination with a specific type of promotional activity.

The ‘Ride 10 get 1 free’ campaign have perfectly demonstrated the pull strategy as the MTR Corporation has pull their consumers to ravel with their railway service and together with the sale promotion of ‘Ride 10 get 1 free’, the company pull their consumers to participate into the promotion by using the MTR transportation service even more. where at the same time push them to only use MTR as their transportation in order to fulfill the promotion requirements, that is to ride 10 Journeys within Monday to Friday to get a free single Journey ticket.

Advertising Advertising is one of the most popular tools used in building brand image and brand awareness. In the ‘Ride 10 get 1 free’ campaign, advertising is one of the key features. During this campaign, MTR Corporation comprised in the advertising schemes of mass communication which included broadcast within the stations, the Internet, newspaper, billboards within the MTR owned properties such as shopping malls, stations and residences.

The company also have broadcast inside every station inform passenger about this campaign. They have billboards all around property the company owns. Those promotions within the company own property, which they can save up cost to do in other places instead. Also, it would be very effective as those billboards have always been a very effective way to do advertisement since the assenger volume were almost 4. 9millions per day.

The above advertising schemes would communicate the message to a huge volume of audiences; therefore the mass communication, the organization does not usually know whom they are communicating with and also the organization is unable to react instantly to its consumers’ reactions to the message that the organization is trying to pass through. In addition, the organization would be required to wait for the respond of their consumers whether they are reacting positively or negatively to the message (Lamb, Hair and McDaniel, 2011).