CONTENTS

EXECUTIVE SUMMARY

1.0 INTRODUCTION Company History V.I.P. a brand name which stands for Very Important Personality is a coach transport company situated at Kwame Nkrumah Circle in Accra shuffles between Accra and Kumasi. It was established four years ago and hence its operation. Customers/ travelers have every reason to reason to regard V.I.P. as the most innovative, safe and comfortable transport service provider. V.I.P. transport is one of the four main coach transport system in Ghana amongst others. Company is managed by four persons under the leadership of Yaw Amponsah Marfo. The transport company is managed by a parent company called Unowaj Transport Company. Aim The aim of V.I.P. Transport is to 1. Provide customers affordable, comfortable, convenient and safety travelling 2. To provide jobs for masses 3. To challenge State Transport Corporation (STC) in customer service. Operation/ Fleet Numbers The safety and comfort comes as a result of its recruitment of well trained/skilful drivers across the country and providing a back up driver on every journey they take.

Having about thirty six (36) fully equipped buses and counting, V.I.P has an integrated service center in Kumasi and Accra which meets the total service need of customers in a professional and official manner. Their service guarantees high degree of availability and ensures that buses are back in operation on a regular time schedule. The customer service experience, comfort and safety put V.I.P transport ahead of its competitor.

2.0 ENVIRONMENTAL IMPACT MATRIX

FACTOR POLITICAL

DESCRIPTION Government passed the National Transportation policy in 2007 to lower transportation cost, integrate rural economy and help international trade from state to compete with the private sector

IMPACT

Opportunity

Increasing import duties so that importing buses by the private sector will be more expensive for the private firms therefore reducing the influence of the private sector

Threat

ECONOMICAL

Inflation- prospective investors will not find it attractive to invest in V.I.P. Significant threat

Depreciation of the cedi- more local currency will need to be used to import the spare parts at the same price

Significant threat

Threat

Taxation- high imposition of taxes by government increases fuel prices. Threat

Increase in fuel price- this will deter customers from using the buses.

SOCIO-CULTURAL

Preference of Ghanaians for big buses due to perception of safety associated with it (over speeding is minimal) Opportunity

Preference of Ghanaians for shorter travel times -Traveling time is Relatively short as compared to other transport companies (minimal stopping time)

Opportunity

Love for new buses- Ghanaians love to travel on new buses due to perception of safety and minimum breakdown associated with new buses

Opportunity

TECHNOLOGICAL

Limited use of technologyThere are no opportunities for online booking , ticket reservation or electronic payments Opportunity

No tracking system

Opportunity

3.0 INTERNAL ASSESSMENT Core of Supplementary Services V.I.P.s core service is in the provision of comfortable and luxurious bus services for travelers shuttling between Accra and Kumasi. However, to enhance its service delivery, the company has employed some supplementary services to facilitate and enhance its service delivery. Facilitating services available includes; a fueling port where buses are fueled before loading to avoid travel delays associated with fueling at external filling stations . The company has a washing bay in the yard to ensure that buses are always washed clean after every trip. There is also, a stand-by generator to supply power in case of power outage. The provision of a parcel delivery service enhances the service experience for patrons. Service Distribution There is very limited use of information technology and automation in the service distribution. Purchase of tickets can only be done at the bus terminals and in cash (i.e. no avenue for ticket reservation and electronic payment) Positioning V.I.P. seeks to position itself as a safe and comfortable bus service provider for middle and high class segments of travelers on the Accra Kumasi route. This is done through the provision of comfortable and spacious coaches designed to the taste of this class and pricing.

Target Market The company seeks to serve tourists, corporate clients and travelers to Kumasi who hope to have a relaxing and comfortable journey and prefer to go by road instead of by air. Pricing The objective of setting prices at V.I.P. is to cover cost and generate profit. The basis of price is in the delivery of value to meet the customer expectation of comfort and luxury. Prices range from GH20.00 per person in the 60 sitter to GH30.00 per person in the 30 sitter bus which is slightly higher than other than the average rate of GH15.00. However, these fares are less than 30% of the cost of air travel which is also an alternative for the target market. Pricing of luggage is by visual inspection. The designated person inspects bags visually and decides on luggage fee Location The terminal is advantageously located opposite the Neoplan station at Circle in an area known to be the hub of commuters to all parts of Ghana. The location is easily accessible by both private and public transport. Servicescape The grounds of the terminal are untarred making it muddy when it rains and dusty during the dry season. There is very little greens in the environs and the exterior walls of the building are dusty making the place appear unattractive.

The ticketing/departure hall walls are dirty with paint peeling off. The room is warm due to non functional airconditioners.Entry/exit door is defective and some windows are also broken. Waiting chairs are largely uncomfortable and haphazardly arranged. The hall is equipped with a two 32 inch flat screen television but only one is functional. There is only one ticketing booth and this result in unbearably long queues during peak demand. Directional signs are very limited. The only observable ones are the Ticket booth and arrival/departure halls signs. There is only one bus boarding bay but this has not been demarcated. There is no designated parking place for passengers and no security is n place for parked cars. A newly built washroom serves passengers. Passengers can use washroom at a fee. The washrooms are clean and fitted with water closets and wash hand basins and toiletries are provided. Buses are very clean with comfortable interior. Drivers look professionally dressed though they do not have name tags. Buses are equipped with large recliner chairs and have TV and DVD player for entertainment. Human Resource and Customer Relationship Management Staffs are professionally dressed but do not have name tags. There is no functional Human Resource department and the general manager serves in that capacity. Workers are competent and very friendly.

There are no customer complaints/suggestion boxes/booths and grievances are generally difficult to communicate. No attempt is made to keep customer database or develop customer relationship. Service Design The flowchart for core service delivery is shown below (figure 1). Queues are single lines to single ticketing booth. Customers have to remain in queues to secure their position. No measures are in place to check unfair waits

Flowchart for Service Delivery

Travel to Bus station

Park car at car park

Join queue for tickets

Buy Tickets

Ticket Attendant issues ticket

Conductors assist with luggage removal

Driver ensures passenger comfort

Bus conductor assist with checking in

Disembark from bus

Figure 1

Travel on bus to destination

Board bus

Check in luggage

4.0 SWOT ANALYSIS

5.0 RECOMMENDATIONS SERVICE DIMENSION RECOMMENDATION(S)

1. Supplementary Services

1. Include a secured Park and Board parking service to enhance the core service experience for market segment who would prefer to park cars and travel.

2. Partner with Financial institutions to install ATMS at the bus terminal to meet the needs of customers who want quick cash

3. Enhance the credibility of drivers by establishing a drivers training school for continual training of own staff and general public.

4. Develop a company website which would give critical information like departure and arrival times as well as weekly travel schedule.

SERVICE DIMENSION

RECOMMENDATIONS

2.Service Distribution

Introduce an electronic booking system capable of issuing e-tickets. Tickets should be priced lower than those bought at bus terminals to encourage use of this medium. Implement alternative payment modes like using e-zwich card

3.Pricing

1.Implement a revenue management system by pricing lower during off peak periods (Monday to Thursday) and applying higher rates during peak periods(Friday to Thursday).Special rates should also be applied for holiday seasons when demand is very high. This will help smoothen out demand and eliminate the huge queues which build during weekends and ultimately increase revenue.

2. Price luggage by weighing. Price per weight should be displayed prominently on site. Current system which uses visual inspection of luggage as criteria for pricing is unfair

SERVICE DIMENSION

RECOMMENDATIONS

4.Promotion

1. Improve on marketing communication efforts through advertising to build brand loyalty and communicate brand position.

2. Sponsor Television and/or radio programs that focus on safe driving to communicate core value of safety.

3.Website should have information on driver and passenger safety tips, information on core and supplementary services ,customer feedback portals etc in order to project brand and develop brand equity 5.Balancing of demand and productive capacity 1. Current queuing system is unorganized and easily abused. Introduce a take number queuing system to create equitable waits.

2. Encourage early reservation by pricing lower for reservations made far in advance of departure. This will help better manage demand

SERVICE DIMENSION

RECOMMENDATIONS

6.Service Design

Create a LOST ITEM booth for collection of unpicked/unattended luggage, items left in bus etc.

7.Complaint Handling

Set up a customer complaint and suggestion center/box to handle customer complaints

8.Customer Relationship Management

Have a customer database and identify loyal customers. Loyal customers should be rewarded with special services like having preference seats and special discounts periodically.

SERVICE DIMENSION 9.Service Environment

RECOMMENDATION(S) 1. Improve on serviscape by providing adequate greenery and flowers and using concrete tiles for exterior floor space.

2. Paint the whole facility to improve on ambient conditions.

3. Provide enough signs, symbols and artifacts to facilitate service experience. Directional signs to washrooms, ticketing center as well as other service areas should be clearly displayed. Other signs to reinforce behavioral rules like NO SMOKING signs should be provided

4. Service flowchart should be conspicuously displayed at entrance to departure/ticketing hall to communicate the service script.

5.The bus boarding bay should be clearly demarcated and labeled with safety lines

9. Service Environment

6.Human and bus lanes should be clearly demarcated to prevent accidents

7. Improve on ambient conditions at the ticketing area by painting walls, repairing broken doors and windows, repairing defective air-conditioners and television sets and providing slow, soothing music through PA system.

8. Replace uncomfortable wooden chairs at waiting rooms with more comfortable seats.

9. Improve on spatial layout and functionality at arrival/ticketing hall by increasing ticketing booths and re-arrange seats to provide more space to ease human and luggage movement.

SERVICE DIMENSION

RECOMMENDATION(S)

1. Create a functional human resource 10.Human Resource Management and service quality Improvement department to educate employees on various aspects of customer service.

2. Employees should have tags showing name and designated position.

3. Create a measurable benchmark for service quality and evaluate on regular basis conformance.

Motivate workers through quarterly best worker awards, recognition of exceptional service delivery.

6.0 CONCLUSION

APPENDIX

APPENDIX

APPENDIX