PRINCIPLES OF 
        FREIGHT PRICING  
                   K. SIVA PRASAD 
           CHIEF PASSENGER TRAFFIC MANAGER 
                 SOUTH CENTRAL RAILWAY 
                           INDIA 
    05-02-2014             K. SIVA PRASAD               1 
                  Road Map – Lecture Outline 
                                                   Cost of                           Classification 
        Why Price                                  Service                              of Goods 
                                                          Value 
                              PRINCIPLES                    of                          Freight 
           Indian             OF FREIGHT                 Service                       Structure 
        Railway Act             PRICING 
                                                            What 
                                                          Traffic Can 
                                                            Bear?                   Indian Railways 
                                                                                       Examples 
                                                            Price 
                                                          Elasticity 
                                             Telescopic 
                                              Rates                                   Discussions 
       05-02-2014                              K. SIVA PRASAD                                    2 
               Four “P”s of Marketing Mix* 
           PRODUCT                                                    PRICE 
          {Variety Quality                                           List Price 
          Design Features                                            Discounts 
           Brand Name                                               Allowances 
            Packaging                     Target                   Payment period 
             Services}                                              Credit Terms 
                                        customers 
                                         Intended 
                                        positioning 
          PROMOTION                                                   PLACE 
                                                                  Coverage  channels 
           Advertising                                              Assortments 
          Personal Selling                                           Locations 
          Sales Promotion                                            Inventory 
          Public Relations                                          Transportation 
                                                                      Logistics 
                    *Principles of Marketing,  Philip Kotler & Gary Armstrong 
      05-02-2014                       K. SIVA PRASAD                             3 
            Railways : Special Features 
        Railway Lines  -across Length & Breadth of the 
        Country 
        Hundreds of Stations 
        Multiple Services / Classes : Freight, Passengers, 
        Luggage, Parcels, Railway Mail 
        Rail Transportation : “Perishable” 
        Capital Intensive – Long Gestation Periods 
        Suitable Manpower 
        
      
        
    05-02-2014              K. SIVA PRASAD                4