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BUSE4025 BRAND MANAGEMENT Part A: Brand Book

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Page 1: Brand Book - TinasheChuchutinashechuchu.com/publications/Article 43.pdf · This Brand Book will examine the Gautrain performing a brand audit. A brand audit is a “comprehensive

BUSE4025

BRAND MANAGEMENT

Part A: Brand Book

Page 2: Brand Book - TinasheChuchutinashechuchu.com/publications/Article 43.pdf · This Brand Book will examine the Gautrain performing a brand audit. A brand audit is a “comprehensive

Table of Contents 1. Introduction ........................................................................................................................ 1

2. Brand History ..................................................................................................................... 1

2.1 Gauteng History .......................................................................................................... 1

2.2 Project Description ...................................................................................................... 2

2.3 Key Stages in its Growth ............................................................................................. 2

2.3.1 Procurement ......................................................................................................... 2

2.3.2 Financing.............................................................................................................. 3

2.3.3 Gautrain phases .................................................................................................... 4

3. Assessment of brand’s current status.................................................................................. 5

3.1 Brand Hierarchy .......................................................................................................... 5

3.2 Customer-based brand equity ...................................................................................... 6

3.3 Brand positioning and values ...................................................................................... 6

3.4 Brand Mantra............................................................................................................... 7

4. Brand Elements and Marketing Mix Activities ................................................................. 8

4.1. Brand Elements ........................................................................................................... 8

4.1.1. Brand Name ......................................................................................................... 9

4.1.2. URLs (Uniform Resource Locators) .................................................................... 9

4.1.3. Logos and Symbols .............................................................................................. 9

4.1.4. Slogans ............................................................................................................... 10

4.1.5. Other Brand Elements ........................................................................................ 10

4.2. Marketing Mix........................................................................................................... 10

4.2.1. Product ............................................................................................................... 10

4.2.2. Price ................................................................................................................... 10

4.2.3 Place/Distribution .............................................................................................. 11

4.2.4 Promotion/Communications .............................................................................. 12

5. Recommendations ............................................................................................................ 14

5.1 What Gautrain can do to improve their current status .............................................. 14

5.2 What Gautrain can do to improve on their brand elements ....................................... 15

5.3 Recommendations for pricing, peak and off-peak periods ....................................... 16

5.4 Recommendations for brand alliances ...................................................................... 16

5.5 Recommendations for advertising and displays at stations ....................................... 16

5.6 Recommendations for supplementary modes of transport ........................................ 17

6. Conclusion ........................................................................................................................ 17

7. Bibliography ..................................................................................................................... 18

Table of Figures Figure 1: History By Year.......................................................................................................... 2

Figure 2: Gautrain Financing ..................................................................................................... 4

Figure 3: Gautrain Financing ..................................................................................................... 4

Figure 4: Parent Brand and Sub-Brand ...................................................................................... 5

Figure 5: Gautrain’s Logo and Slogan ....................................................................................... 8

Figure 6: Pretoria and Johannesburg, now joined ...................................................................... 9

Figure 7: Development of the Logo ......................................................................................... 10

Figure 8: Gautrain Ticket Prices .............................................................................................. 10

Figure 9: Parking Prices ........................................................................................................... 11

Figure 10: Train Route ............................................................................................................. 11

Figure 11: Train & Bus Route ................................................................................................. 12

Figure 12: Electronic Ticket Terminals ................................................................................... 12

Figure 13: Billboards ............................................................................................................... 13

Figure 14: Television Advert ................................................................................................... 13

Figure 15: The Gautrain Mobile App ...................................................................................... 14

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1. Introduction

The discovery of gold in Gauteng has since

catapulted the smallest province of South Africa

into its economic hub (Andrew & Thoms, 2012).

This has led to much urbanization in the region,

which has increased road congestions,

warranting infrastructural developments

(Andrew & Thoms, 2012). The government

initially responded to this with the development

of buses, traditional trains and taxis, as well as a

much smaller market of cabs. However, this has

failed to address the real problem of traffic in

Gauteng that is growing at 7% every year

(Hutchinson, 2006). Thus, the Gautrain was

proposed to alleviate the traffic on the major

highways of Gauteng between Pretoria and

Johannesburg. The Gautrain is a rapid rail

system that, although was met with much

criticism when proposed, has established itself as

one of the largest transport infrastructural

developments, and thus a key brand to Gauteng

(Dachs, 2011). It is thus pertinent to study

Gautrain’s growth and determine its brand

status.

This Brand Book will examine the Gautrain

performing a brand audit. A brand audit is a

“comprehensive examination of a brand to

discover its sources of brand equity” (Keller,

2013). It will do this by looking at its history, an

assessment of the brand’s current status as well

as an explanation of Gautrain’s brand elements

and marketing mix. Recommendations will then

be given as to how Gautrain can improve its

brand equity.

2. Brand History

2.1 Gauteng History

The Gautrain is a rapid passenger rail system that

links three places identified as critically

affecting the Gautrain, namely Pretoria,

Johannesburg and O.R Tambo International

Airport in Gauteng, South Africa. Twenty-five

years ago, passenger rail was considered the

worst financial investment, and internationally it

was a subsidised public good. However, in the

past 25 years passenger rail has bounced back as

a viable transport system and has made a move

towards private participation (Dachs, 2011). The

Gautrain project is one of the 10 Spatial

Development Initiatives (SDI’s) of the Gauteng

Provincial Department of Economic Affairs and

Finance, which has the following objectives

(Joubert, Pretorius, Morgan, & Mntonintshi,

2001):

• To boost economic growth and

encourage new economic growth

• To link employees and employment

• To enhance accessibility

• To redevelop and revitalise CBD’s

• To develop new-town core areas

• To reinforce current vibrant nodes

The most critical motivation to for the

development of the Gautrain was the strong link

between the O.R Tambo International Airport’s

passengers and Sandton, which was dominated

by a strong hotel, conference and business core

(Joubert, Pretorius, Morgan, & Mntonintshi,

2001). Other motivations include alleviating the

congestion on the M1 and N1. The Gauteng

province is the economic hub of South Africa,

but only covers less than 2% of South Africa’s

total surface area (Bohlweki Environmental

(Pty) Ltd, 2002). Gauteng alone generates over

36% of South Africa’s gross domestic product

(GDP), and more 9% of Africa’s entire GDP

(Andrew & Thoms, 2012). Gauteng has the most

developed and sophisticated infrastructure of the

world and consists of 20% of South Africa’s

citizens. Each year South Africa receives 7

million international tourists. Approximately

52% of these tourists pass through Gauteng

(Andrew & Thoms, 2012). The growth in

Gauteng as the economic hub has led to major

urbanization, and thus for the past ten years the

traffic volume has been growing at 7% per

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annum. By 2006 there were 300 000 passengers

each working day between Pretoria and

Johannesburg, and the average travelling time

between these two locales during peak periods

was two hours (Hutchinson, 2006). The hopes

were for the Gautrain to alleviate the traffic by

taking about a fifth of those commuters, which is

approximately 60 000 daily passengers. This, it

was hoped, would counteract the urban sprawl.

Also on the agenda was to grow the economy by

at least 8% by 2014 (Dachs, 2011).

Figure 1: History by Year

2007 • TBM Launch and Naming Ceremony

• Johannesburg makes way for Gautrain

• Search and Rescue

2006 • Commencement of Construction

2005 • Preferred Bidder Announced

2002

• Request for Proposals (RFP) Phase II

• Request for Proposals (RFP) Phase I

• Announcement of Prequalified Bidders

• RFQ Submissions by Prospective Bidders

• Request For Qualification Advertised

• Environmental Impact Assessment

• Environmental Impact Assessment

2001

• The Gautrain and the Environment

• International Investors Conference

• Political Visits and Discussions

• Feasibility Report

2000

• The first Consultative Conference

• Recommended Route and Stations

• Public Private Partnership (PPP)

• The Conceptualisation Report

• Gautrain Appointments

• Transforming Public Transport

• The Need for Public Transport Improvement

• Gautrain announced as spatial development project of Gauteng

1998 • Gautrain pre-feasibility study

(Gautrain, n.d.)

2.2 Project Description

There are 24 train sets in the Gautrain system,

each consisting of 4 cars. In total there are 96

cars. Each of the 4 cars can seat 321 passengers

comfortably. Each train set is designed to run at

160km/h. Out of the 24 train sets, 10 of them are

specifically designed for use on the airport link,

with added features such as extra luggage space

and wider seats, while the other 86 are used for

commuter services (van der Westhuizen M. ,

2012). The three anchor stations of the project

are at Pretoria station, Johannesburg Park Station

and O.R Tambo International Airport. The other

seven stations are at Hatfield, Centurion,

Midrand, Marlboro, Sandton, Rosebank and

Rhodesfield (Bohlweki Environmental (Pty)

Ltd, 2002). The Gautrain project does not just

include railway transport. In addition, the

Gautrain service is supported by a feeder and

distribution bus service (Andrew & Thoms,

2012).

2.3 Key Stages in its Growth

2.3.1 Procurement

The Gautrain began with a Prefeasibility study in

1997 by Dorsch Gruppe, an independent

planning and consulting company from

Germany. The study ended in 1998 and was

subsequently approved by the National Treasury

(Dachs, 2011; Dorsch Gruppe, n.d.). Subsequent

approvals were based on this study, including

development period costing and commuter and

revenue forecasts (Dachs, 2011). After the

feasibility study was approved, an

Environmental Impact Assessment (EIA) was

undertaken between 2002 and 2003. In April

2003 the final EIA, including a Heritage Impact

Assessment and Environmental Resource

Economics Studies was submitted to the

Gauteng Department of Agriculture,

Conservation, Environment and Land Affairs

(GDACEL), and was approved on 29 September

2003 provided some conditions were met

(Gautrain, n.d.). In 2000, the Premier of

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Gauteng, Mbhazima Shilowa, announced the

proposed rapid rail system as one of the 10

spatial development Initiatives carried out by the

Gauteng Provincial Government (Bews, n.d.). In

that same year, a Political Cabinet Committee

was appointed to oversee the whole project

(Dachs, 2011). In addition, a technical project

team was appointed in 2000.

The procurement stages ran between 2002 and

2005. The Gautrain system was procured as a

Public-Private Partnership (PPP) in accordance

with the 1999 Public Finance Management Act,

regulation 16. A two-phase procurement stage

was adopted, namely a Request for Pre-

qualification and a Request for Proposals (van

der Merwe, van der Merwe, van Zyl, & Negota,

2012). The first request for proposals was issued

to a select few in 2002. The proposals were

submitted in 2003 (Andrew & Thoms, 2012).

Once the Pre-qualification was completed the

choice was between two consortia, Bombela and

Gauliwe, both of whom were required to submit

proposals for the design, construction, partly

financing, operating and maintenance of the

Gautrain system. Both proposals initially

exceeded the affordability limit and were thus

modified, after which the two consortia were

required to submit Best-and-Final-Offers

(BAFOs) as the final procurement step (van der

Merwe et al., 2012). The proposals and the

BAFSOs were analysed thoroughly, and in mid-

June of 2005, the Bombela Concession

Company (Pty) Ltd was elected as the

concessionaire for Gautrain on a Public-Private

Partnership and awarded R25 billion for the

project in September 2006 (Gautrain, 2005;

Andrew & Thoms, 2012). This concession is

regulated by the Public Finance Management

Act (PFMA) of South Africa, 1999, and is

monitored by the National Treasury’s PPP Unit.

Bombela signed the concession agreement on 28

September 2006, and financial close was

achieved on 25 January 2007 subsequent to the

approval of the budget by then Minister of

finance Trevor Manuel (Andrew & Thoms,

2012).

Bombela Consortium is a partnership between

Bombardier Transportation (rolling stock

manufacturer), Bouygues Travaux Publics (civil

construction company), Murray & Roberts (civil

construction company), the Loliwe companies,

Bee Partner Strategic Partnership Group, and rail

operator RATP International (Webb, 2006). It is

50% owned by its international partners. The

other 50% is owned by Murray & Roberts and

the Loliwe companies (Gautrain, 2005). A

design, supply and construct contract was

awarded to the Bombela turnkey contractor, a

special-purpose limited liability company. The

company was responsible for delivery of all the

works for the Gautrain (Andrew & Thoms,

2012).

In 2005, a Route Determination Report was

published by the Gauteng Department of Public

Transport, Roads and Works in the Gauteng

Provincial Gazette, which marked the beginning

of the Gauteng Transport Infrastructure Act

(Gautrain, n.d.). During his February 2006

budget speech, Trevor Manuel announced that

R7.1 would be set aside in support of the

Gautrain programme. Subsequent key

developments included the signing of an Early

Works Contract pertaining to the relocation of

the utilities in February 15, the agreement to the

preliminary design for Gautrain in March 9, and

the approval of the Draft Final Environmental

Management Plan for Gautrain in August 18

(Gautrain, n.d.). In September 28, the

negotiations with Bombela were completed, thus

the construction of the Gautrain commenced.

2.3.2 Financing

Crucial to the financing of the Gautrain was

finding investors to finance such a mammoth

project. In the year 2000, the initial cost estimate

for the project was R3.5 billion – R4 billion. By

2002, the budget had increased to R7 billion

(Mahlong, 2010). In 2001, the Premier Shilowa

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and two MECs along with the Gautrain project

leader visited Germany, France and the United

Kingdom for dialogues with development

agencies and possible investors. In August of

that same year, a highly successful International

Investors Conference was held (Gautrain, n.d.).

The Gautrain project received funding from 5

different sources (Dachs, 2011):

• The Division of Revenue Act (DoRA),

which provided money from central

government through the department of

Transport

• The Medium Term Expenditure

Framework (MTEF) from the Gauteng

Provincial Government

• Private Sector Equity

• Private Sector Borrowing

• Provincial Borrowing

The following diagram depicts the percentage of

contribution from each source of finance. The

private sector funding was acquired first, after

which the public sector funding was acquired to

balance it out (Andrew & Thoms, 2012).

Throughout the duration of the project, major

increases in the budget were experienced due to

inflation, labour disputes and other issues

encountered. By 2006, the approved budget,

approved by the National Treasury, had

increased to R25.2 billion (van der Merwe,

2008). At the time, this figure was thought to be

the last increase and would only increase again

either of the following happened: 1) if the CPIX

inflation increased above the level predicted by

the SA Reserve Bank, 2) if Bombela claimed that

Gauteng was in breach of the concession

contract, or 3) if the route was to be extended or

more stations were to be added (Fin24, 2008).

However, by the time the Gautrain was

completed and operational in 2012, the budget

had increased to R26 billion. This final figure is

a combination of the government’s expenses

over 5 years, as well as their costs of borrowing

(van der Westhuizen, 2007).

2.3.3 Gautrain phases

As noted before, the construction of the Gautrain

began on 28 September 2006 after the final

negotiations with Bombela were completed. The

initial plan was to complete the Gautrain in two

phases of 48 and 54 months respectively

(Andrew & Thoms, 2012). The Gautrain was

never meant to be a project for the 2010 World

Cup, but at the time of South Africa being

awarded the opportunity to host the event,

Gautrain was already well advanced. Thus, the

new target concerning the first phase was to

complete it before the World Cup kicked on the

11 June 2010, and this endeavour was successful

and a tremendous achievement by the Gautrain

team (Andrew & Thoms, 2012). The first phase

is the line that connects Sandton and the Airport.

The trial run for the first phase was carried out in

April, 2010, before it was successfully opened in

time for the World Cup (Gautrain, n.d.). The rest

of the project, that being phase 2, was completed

subsequent to completing phase 1. Phase 2

consisted of several milestones such as the

installation of the track work from Midrand to

Pretoria Station by October, the completion of

the Midrand Station in November, the

electrification of the line up to Centurion as well

as the line between Sandton and Rosebank by

December, and the completion of the Sandton

Station by the end of 2010 (Gautrain, n.d.). By

June 2012, the Gautrain was operating fully.

44%

26%

18%

2%10%

DoRA

MTEF

Provicial Borrowing

Equity

Private Debt

Source: (Dachs, 2011)

Figure 2: Gautrain Financing

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3. Assessment of brand’s current status

Current brand status – This refers to the

current standing of the company in the market

and in the case of The Gautrain Company it is

the only player in the market in which it operates

and this is closely linked to the brand image.

According to (Miller, 2007) brand status is

subjective and is largely based on customer

perception. Currently, Gautrain’s brand status is

fairly defined within the market. It is largely seen

by consumers as an exclusive way of travelling

and is mainly targeted at the working class

community and high income earners (Building

Africa, 2011) that commute around a number of

Gauteng areas. This mode of transport has been

greatly associated with business people who are

looking for a fast and convenient way to travel

and avoid the congestion along the road and has

made it ideal for this market to adopt as it favours

both convenience and comfort. However, the

Gautrain brand has unfortunately secluded itself

from the student market and other segments

which it can take advantage of in order to

increase market-share and foster consumer

loyalty.

By making its trips from one destination to

another relatively more expensive than the

conventional modes of transportation such as

taxis, this has made several potential consumers

have a negative perception of the brand in

general as they perceive it as exclusive and a

luxury and not as a necessity. Also it can be

noted that the Gautrain Bus service sub-brand

may not be as effective with the current brand

status that Gautrain has as the target market that

is being focused on at the moment is mainly the

working-class community who have their own

personal modes of transport and hence will not

use the bus on a larger scale. In order to increase

the use of the sub-brand, the brand status should

be fine-tuned accordingly to fit the relatively

lower market which is currently heavily

dependent on public transport (Weisbrod &

Arlee, 2009).

3.1 Brand Hierarchy

A brand hierarchy is a practical way of

displaying a company’s branding strategy

graphically by showing the number and nature of

common and distinctive brand elements across

the company’s products (Keller K. L., 2013).

The brand hierarchy seeks to establish the

supplementary products and services of a brand

separately as brand extensions. It aims to give

awareness to consumers on how the various

brand elements might be related as they are

produced by one parent company (Kevin, 2001).

In the Gautrain case, it can be noted that the bus

service will act as an extension of the brand as

the core service that Gautrain offers is train

transportation within the Gauteng region. The

brand extension has been strategically made to

be closely linked to the Gautrain as it is called

the Gautrain bus service. This helps to increase

the levels of association that the sub-brand has

with the parent brand. Brand extension can be a

challenge for a firm to implement successfully

(Doraiswamy, 2011) but for Gautrain, this may

be relatively easier as there is a strong

association between the parent brand and the

sub-brand.

The Gautrain Bus service brand extension which

is under the Gautrain family brand, has had a

massive fallout with the public as the trips from

one place to another are generally more

expensive than making use of the taxis and other

public transport like Metro buses (Rosebank

Management District, 2013). Another major

problem with the Gautrain brand is that the bus

Gautrain

Gautrain Bus

Figure 4: Parent Brand and Sub-Brand

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service does not operate after 8:30 pm which

greatly inconveniences people who finish work

after that time. The fact that the bus service does

not operate during the weekends has also taken

away some customers and potential customers of

the brand. This has made it difficult for

consumers to switch to the product but for those

consumers that use the Gautrain service

consistently, using the bus was quite easy for

them to adapt to as they have a level of consumer

loyalty.

By creating the bus campaign in order to reduce

the problems associated with having ghost-

buses, the firm will have to implement a brand

hierarchy which will go a long way to help

increase the levels of convenience and usage of

these services. The Gautrain-Bus will therefore

be re-introduced as a sub-brand in order to

correctly position it in the mind of the consumer.

This will be done by making use of various

communication mixes that include advertising,

sales-promotion and public relations.

The strategy that can be adopted is to make

commuters realize that the bus will help them

save and at the same time they will be able to

gain from the loyalty program with free trips.

This will help ensure that the consumers are

loyal to the brand and actually have the brand

imprinted in their minds as the transport of

choice for them to conduct their day to day

business activities.

3.2 Customer-based brand equity

Customer-based brand equity can be defined as

“the differential effect that brand knowledge has

on consumer response to the marketing of that

brand” (Keller K. L., 2013, p. 69). Customer

based brand equity refers to the differential

effect of brand knowledge on customer response

(Kohli & Leuthesser, 2001) and these are:

1. Differential Effect

2. Brand Knowledge

3. Consumer response to marketing

Differential effect refers to what uniquely

identifies a particular brand and this is largely

based on the brand awareness that the target

consumer is exposed to by the firm. In this

instance Gautrain’s differential effect is

convenience for the customer as well as being a

fast and reliable mode of public transport

(Gautrain, 2013). Brand knowledge looks at the

personal meaning about a brand stored in

consumer memory and these meanings, which

are largely descriptive and evaluative brand

related information (Keller, 2003) are largely

based on the products and services that are being

offered by a particular firm. Gautrain has been

able to increase its brand equity as a mode of

public transport by making use of integrated

marketing tools such as advertising on

traditional communication channels such as

television, radios and billboards as well as

increasing its presence on the social media

channels like Facebook in order to draw the

attention of the market that they are trying to

serve. This has greatly helped to increase the

brand knowledge that the market has of its

products and services. The consumer’s

responses to marketing efforts by Gautrain have

been relatively fair as many commuters between

Johannesburg and Pretoria have adopted the

service although a significant number still think

that the Gautrain is too expensive (Chauke,

2006).

The Gautrain brand will be marketing two main

products which are the train and the bus service.

It will therefore be important for the firm to

adopt the right brand equity for its product as it

will provide numerous financial rewards for the

firm (Kevin, 2001). Currently the firm’s brand

equity revolves around convenience for the

commuter and this has helped the firm to gain a

competitive advantage over other modes of

transport that use the road as a transport channel.

3.3 Brand positioning and values

Brand Positioning:

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Brand positioning refers to how an organization

can set itself up in a consumer’s mind and in the

particular market in which it competes (Keller,

2013). Brand positioning has three important

aspects which are the frame of reference (by

referring to the target market and nature of

competition), points-of-difference and points-of-

parity.

A target market is a group of people for whom

the business will coordinate a marketing mix

which intends to meet the requirements of that

group (Chuchu, 2013).

There are three general strategies of targeting

including: undifferentiated marketing strategy,

concentrated targeting strategy, and the multi-

segment targeting strategy (Lamb, et al., 2010).

Gautrain currently targets the working class

belonging to Generation X to try and reduce the

amount of traffic on major highways in the

Johannesburg and Pretoria area.

Competitive frame of reference involves the

Gautrain Company establishing a brand category

membership for positioning its brand (Keller,

2013). As far as the Gautrain brand is concerned

the company’s closest competitors would be

taxis when one looks at the routes covered, fare

costs and distances travelled but the Gautrain

brand must know exactly which brands it

competes against and if necessary inform its

customers of about its category membership.

Points-of-difference refers to the advantages or

characteristics that customers closely associate

with a brand. After close analysis customers

discover that they cannot find any other

competitive brand that they can attach those

same characteristics and advantages to (Keller,

2013). In the case of the Gautrain the

organization should make sure it offers distinct

advantages that its rivals cannot provide to the

market. For Gautrain, the point of difference has

been comfort and speed of this mode of

transport. A trip from Park-station to Rosebank

will only take less than 8 minutes and since this

mode of transport is convenient during peak

hours, the unique point of difference can be used

to market the service to Gauteng commuters.

Commuters are likely to adapt to this mode of

transport as it is a better alternative to using

vehicles which are more exposed to road

accidents and traffic jams during rush-hour or

peak hours in the morning and after 16h00.

Points-of-parity every brand tends to build its

services or products on the associations that they

would like to be closely linked to (Carlsson &

Linander, 2012). The Gautrain Company must

make use of points-of-parity to counter any

possible future short-comings that might hinder

the success of the organization. This can be done

by making use of various marketing mixes in

order to increase awareness of the brand as a type

of public transport rather than just a luxurious

means of travel. Commuting from different areas

around Johannesburg is relatively cheaper with

other forms of public transport such as Taxis. It

will therefore become essential for Gautrain to

base the price of its transport services on current

sources of public transport to a certain extent but

make use of the points of difference to slightly

price its services slightly higher than other

common sources of public transport.

Brand Values:

Brand values refers to the customer’s personal

opinion on quality , the value the customer

attaches to the Gautrain brand, after taking into

consideration current prices and advertisements

(Kamakura & Russell, 1993). The Gautrain’s

value proposition to the target consumers so far

has reflected a brand image of comfort, luxury

and convenience for its customers. This has

helped the firm to penetrate the transport market

which is currently saturated by taxis and public

buses between Johannesburg and Pretoria.

3.4 Brand Mantra

Brand mantra refers to a short phrase that

capsules the obvious brand elements of an

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organisation’s brand positioning (Keller, 2013).

In the case of the Gautrain Company “For people

on the move,” really captures its brand essence

and brand promise. This means that the brand

mantra clearly defines and explains an

organization’s main purpose adequately and

sufficiently. As a way to ensure consistency, it

will be unnecessary for Gautrain to have a

different brand mantra for its sub-brand,

Gautrain Bus Service as this may cause

confusion on how the Gautrain brand is

marketed. However, Gautrain may want to lower

the prices charged on its bus-fares to instil a

point of parity within the market and in such an

instance it may possibly consider creating a

separate brand-mantra in order to gain market-

share from its competitors that include Metro-

Bus and Rea-Vaya. It may be slightly linked to

the main brand mantra and can be something like

“Let’s keep moving” to emphasize the point of

mobility to the consumers.

Intended versus actual meaning:

This involves clearly defining operational

strategy (Irvin, 2006). The intentions, aims and

objectives of the Gautrain’s business strategy

must be made clear to its customers so as to

avoid any misinterpretations as far as the

company’s offering is concerned. Currently

there is a widespread misconception that the

Gautrain is mainly targeting the business and

working-class consumers. The actual market that

Gautrain intends to serve is the commuter

travelling between towns and areas between

Johannesburg and Pretoria. In order to ensure

that the intended meaning is at par with the

actual meaning of the brand, it will be essential

for marketers to make use of the integrated

marketing communication mix to ensure that the

message being passed to the intended audience

is essential in order to widen its customer-base.

Value to customer:

This refers to the benefits that the customer will

receive from using a company’s product or

service and how that customer sees the costs of

obtaining that particular product or service

(Perreault & McCarthy, 2006). In relation to The

Gautrain Company this would mean that a

commuter compares the cost of the service with

the actually service provided to see if his or her

travelling needs are being satisfied so as to be

able to make an informed decision to determine

if the service is worth paying for again. Gautrain

consumers may greatly value the products

because of its points of differences which are

centred on speed and convenience on the

consumer. Travelling between towns has been

made more effective taking only 40 minutes for

one to travel from Pretoria to Johannesburg

(Joubert, Pretorius, Morgan, & Mntonintshi,

2001).

4. Brand Elements and

Marketing Mix Activities

4.1. Brand Elements

Brand elements, also called brand identities, are

those trademarkable components of a brand at

are used as identifiers and differentiators. It has

been suggested by the customer-based brand

equity model that these brand elements should be

chosen with a view to enhancing brand

awareness, supporting favourable brand

associations and obtaining positive judgments

and feelings about the brand. Brand elements

include the: Brand Name, URLs, Logos and

Symbols, Characters, Slogans, Jingles and

Packaging. They need to be: memorable,

meaningful, likable, transferable, adaptable and

protectable (Keller, 2013).

Figure 5: Gautrain’s Logo and Slogan

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4.1.1. Brand Name

A brand is a name, term, symbol, design or

combination of these, which the consumer will

identify to be associated with the goods or

services of a particular seller and is intended to

differentiate them from the competitors’ goods

and services (Kotler, 2000). Gautrain’s brand

name is a collaboration of the words Gauteng

and train. This causes a strong association with

both of these. Gautrain is clearly differentiable

from competitors that are both direct (train

services) and indirect (transport services). It is

easy to remember and meaningful to the

residents of Gauteng.

4.1.2. URLs (Uniform Resource Locators)

URLs, which are commonly referred to as

“domain names”, indicate locations of pages on

the Web (Keller, 2013). The Gautrain has a

number of URLs:

• Gautrain’s main website’s URL is:

www.gautrain.co.za

The website includes commuter information

and project information:

Commuter information: This keeps

commuters informed about the Gautrain

Gold Card, fares, routes, buses and parking.

Project information: This keeps the public

informed about the latest news regarding the

Gautrain, construction updates as well as

other project related information.

• Gautrain’s Youtube URL is:

http://www.youtube.com/user/GautrainSocialMedia

This includes: videos about the construction,

advertisements and promotions,

explanations on how to use the Gautrain

(Gautrain 101), as well as the general

operations.

• Gautrain’s Facebook URL is:

http://www.facebook.com/Gautrain

This includes: information on the Gautrain in

general and about the apps and routes;

updates on the Gautrain service itself, i.e. if

there are delays; a link to its Youtube URL;

photos and videos; and information on

events and drives. It is currently promoting

the “Blanket Run 2013” where they have

collaborated with eNuus to collect blankets

for Children at Play (CAP), an initiative

helping children in need (Gautrain, 2013).

Here they are associating their brand with

charity.

• Gautrain’s Twitter URL is:

https://twitter.com/TheGautrain

This includes: updates about delays, prices

and promotions. They have recently kept

their commuters up-to-date with the bus

strike that severely affected their bus routes.

Both the Facebook and Twitter accounts allow

interaction with their commuters.

4.1.3. Logos and Symbols

Visual elements play an important part in

building brand equity and brand awareness, even

though the brand name is characteristically the

fundamental element of the brand. Logos are

used as a way to signify origin, ownership, or

association (Keller, 2013). The Gautrain logo is

simple yet powerful. The logo is made up of

dynamic blue and gold lines which are supposed

to give the impression of a “golden train

speeding across the Gauteng landscape”

encompassing the speed, efficiency and

futuristic world-class design that the Gautrain

has to offer. The blue is used as an association

with Gauteng because it is the colour of

Gauteng’s Provincial Government logo

(Gautrain, n.d.c).

Figure 6: Pretoria and Johannesburg, now joined

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Key: HF = Hatfield PT = Pretoria CE = Centurion MI = Midrand MA = Marlboro SA = Sandton RB = Rosebank PA = Park RH = Rhodesfield

Figure 7: Development of the Logo

(Gautrain, n.d.c)

4.1.4. Slogans

Slogans are “short phrases that communicate

descriptive or persuasive information about the

brand” (Keller, 2013, p. 158). The Gautrain’s

slogan is “For people on the move” which

supports the logo (Gautrain, n.d.b).

This slogan summarises Gautrain’s three core

brand values:

1. Freedom

Gautrain frees you from traffic congestion. With

Gautrain there is no bumper-to-bumper traffic,

people cutting in front of you or those truck-

breakdowns on the highway. Consumers are now

able to enjoy freedom of movement with a

convenient, reliable, safe and predictable mode

of transport (Gautrain, n.d.b).

2. Pride

Gautrain has become a symbol of South Africa

pride. It is one of South Africa’s greatest

infrastructures and sophistications. It can be said

that Gautrain has created a second gold rush in

our country. Gold (evident in the logo)

represents Gauteng, the gold mining of the past,

its heritage, soul and dreams of a golden future.

The Gautrain is something that all South

Africans can be proud of with a rich combination

of superior technology and African pride

(Gautrain, n.d.b).

3. Relationships

Gautrain not only wants to build strong, positive

relationships with its clients but also with

communities and the environment. With the help

of an Environmental Management Plan,

Gautrain aims to nurture relationships with the

communities and environment that has been

affected by construction. They aim to closer new

opportunities for development, prosperity and

investment (Gautrain, n.d.b).

4.1.5. Other Brand Elements

The Gautrain doesn’t make use of brand

elements such as characters, jingles and

packaging.

4.2. Marketing Mix

4.2.1. Product

The product refers to what the offering

essentially is and its key characteristics (Venter

& Jansen van Rensburg, 2012). Gautrain offers a

rapid passenger rail system to the consumer

which allows them travel in and around Pretoria,

Johannesburg and O.R. Tambo International

Airport. In addition, Gautrain provides a bus

support system Serviced by a network of 125

buses for their trains (Gautrain, Ticketing, n.d.d).

These systems are offered to the consumer as an

alternative to motor vehicle transport.

4.2.2. Price

The price refers to what the business should

charge for the product (Venter & Jansen van

Rensburg, 2012). It is what a customer must give

up in exchange for a product (Lamb, et al.,

2010).

The Gautrain’s Pricing structure for the train

and bus services are as follows: (Taken from

the Gautrain website (Gautrain, 2013))

Gautrain:

Figure 8: Gautrain Ticket Prices

SINGLE TRAIN: To/From OR Tambo

Sandton R115

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Marlboro R115

Rhodesfield R115

Rosebank R125

Park R125

Midrand R125

Centurion R135

Pretoria R135

Hatfield R135

PAY-AS-YOU-GO:

HF PT CE MI MA SA RB PA RH

HF

20 25 37 43 46 49 52 49

PT 20

23 31 40 43 46 49 46

CE 25 23

25 31 38 40 43 41

MI 37 31 25

23 25 28 31 29

MA 43 40 31 23

20 22 25 23

SA 46 43 38 25 20

20 22 27

RB 49 46 40 28 22 20

20 29

PA 52 49 43 31 25 22 20

31

RH 49 46 41 29 23 27 29 31

7-DAY PASS:

HF PT CE MI MA SA RB PA RH

HF

183 227 336 386 414 438 466 443

PT 183

206 277 362 390 411 439 417

CE 227 206

233 278 340 362 387 367

MI 336 277 233

207 232 251 273 255

MA 386 362 278 207

186 205 228 210

SA 414 390 340 232 186

181 203 234

RB 438 411 362 251 205 181

184 253

PA 466 439 387 273 228 203 184

276

RH 443 417 367 255 210 234 253 276

35-DAY PASS:

Parking:

The same parking fees are applicable at all

stations. The same Gautrain Gold Card must be

used for the Train, Parking and Bus facilities to

qualify for the Rail User Parking Fee.

Non-rail user fees will be applied if you take

longer than 60 minutes to tag out of the parking

after tagging out of a train.

Figure 9: Parking Prices Parking Period Rail User Non-Rail User

0-15min Free Free

15min-1hr R 10 R 10

One day R 12 R 85

Two days R 64 R170

Three days R117 R255

Four days R170 R340

Five days R223 R425

More than five days

R223 plus R85 for each extra day

R425 plus R85 for each extra day

Gaubus:

Rail User Single Fare: R6

(If you use a bus and a train within one hour of

one another)

Non-Rail User Single Fare: R20

(If you use a bus and don’t also use a train within

one hour)

Increase in prices as of 1 June 2013:

It was announced that starting 1 June 2013, train

services would see an increase of about 6%,

however bus fares would remain the same.

Airport service train fares will increase by R10,

and to balance this, long term parking tariffs

would be cheaper (primarily benefitting airport

travellers. The daily parking tariff increases from

R12 to R15.

4.2.3 Place/Distribution

Distribution strategies involve making products

available to consumers when and where the

consumers want them (Lamb, et al., 2010).

Gautrain, first and foremost, offers a

transportation system to its consumer. All points

where they come into contact with their

customers would be their train and bus stations.

Gautrain has train stations at:

• Hatfield

• Pretoria

• Centurion

• Midrand

• Park (Jhb)

• Rosebank

• Sandton

• Marlboro

• Rhodesfield

• O.R. Tambo

International

Airport

The Dedicated Feeder and Distribution Services’

(Bus System) main objective is to support the

train service by operating an effective and

efficient bus service on business days to and

from Gautrain Stations. It is ensured that the

HF PT CE MI MA SA RB PA RH

HF

716 888 1313 1512 1620 1712 1822 1734

PT 716

805 1083 1417 1524 1608 1718 1630

CE 888 805

910 1086 1330 1414 1514 1443

MI 1313 1083 910

809 906 980 1069 997

MA 1512 1417 1086 809

729 803 892 820

SA 1620 1524 1330 906 729

707 795 917

RB 1712 1608 1414 980 803 707

721 991

PA 1822 1718 1514 1069 892 795 721

1079

RH 1734 1630 1433 997 820 917 991 1079

Figure 10: Train Route

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serviced bus routes do not compete with other

public transport services provided by the Cities

(GMA, 2012).

Gautrain has the following bus routes:

• 5 Hatfield Bus Routes

o Arcadia

o Brooklyn

o Lynnwood

o Queensworld

o Menlyn

• 4 Centurion Bus Routes

o Highveld

o Rooihuiskraal

o Wierda Park

o Southdowns

• 3 Midrand Bus Routes

o Randjespark

o Noordwyk

o Sunninghill

• 2 Pretoria Bus Routes

o CBD

o Groenkloof

• 2 Park Bus Routes

o CBD

o Parktown

• 2 Rhodesfield Bus Routes

o Kempton Park

o Emperors Palace

• 5 Sandton Bus Routes

o Gallo Manor

o Rivonia

o Randburg

o Fourways

o A weekend shuttle from Sandton Station to

Monte Casino

• 1 Marlboro Route

o Linbro Park

In terms of purchasing tickets, Gautrain makes

use of electronic ticketing for passenger

convenience.

Gautrain commuters make use of reloadable

smart cards which they are able to load money

onto in order to buy tickets. Consumers can

obtain these cards from the self-help ticket

vending machines (pictured above) or a manned

ticket office in each station. These same vending

machines allow the consumer to load money

onto their cards (cash, debit or credit cards) as

well as purchase tickets. When passing through

the access gates to get to the terminals and trains,

your card is scanned electronically; the gates do

not require the physical swiping of the cards. All

these processes ensure a smooth and fast

operation and process and it is hoped to form a

part of a future integrated public transport

ticketing system across Gauteng (Gautrain,

n.d.d).

4.2.4 Promotion/Communications

Integrated Marketing Communication Startegy

(IMC) is a communication process that entails

the coordination and integration of diverse forms

of marcom such as advertising, public relations,

sales promotions and personal selling to produce

a clear, consistent message that is consumer-

focused (Lamb, et al., 2010). Gautrain’s

message to the consumer is that by using the

Gautrain, it makes travelling convenient, fast,

reliable, safe and affordable. They communicate

this message through a number of forms of

communication. These include:

1. Advertising and promotion

Advertising is “any paid form of nonpersonal

presentation and promotion of ideas, goods

or services by an identified sponsor” (Keller,

2013, p. 221). There are many types of

advertising mediums that Gautrain employ:

Figure 11: Train & Bus Route

Figure 12: Electronic Ticket Terminals

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a. Billboards:

Billboards, in terms of Gautrain’s offering, are in

fact an extremely clever way of advertising as it

works subliminaly. Billboards are placed so that

they are visible from highways. By advertising

near highways they are able to reach a large

audience, most notably in the mornings and

evenings when people are going to and from

work. There is extremely high traffic at these

times, and the billboards continually advertise

the quickness of the Gautrain. Subliminally,

Gautrain’s message to the consumer is that

instead of the consumer having to wait endlessly

in morning/evening traffic, they could use the

Gautrain instead and save on time.

b. Television and Radio Adverts:

These are considered traditional froms of

advertising (Shimp, 2010). An example of an

advertisement is as follows:

http://www.youtube.com/watch?v=fZwKGc_x5ao

c. Sales promotions

Sales promotions are used as a short-term

incentive to encourage trial or persuade a

customer to use a product or service (Keller,

2013). During the months of December and

January, Gautrain ran a special promotion on its

airport and bus services. During this period,

parking at the Gautrain station cost only R1/day

as well as bus passengers only being charged

R1/trip when using the Gautrain bus services.

This was a favourable way to promote the brand

during the festive season as parking for 7 days

when using the Gautrain service only cost the

passenger R7 when it would usually cost them

R393 (Gautrain, 2012).

2. Interactive marketing

The two key features of the internet are

individualisation and interactivity (Shimp,

2010). This gives the consumer greater control

over deciding what they want to be exposed to

and what they don’t. They also have the

opportunity to find out specific information that

they want (Keller, 2013).

a. Web site

A company’s website is already an

advertisement for the company (Shimp, 2010).

As mentioned earlier, Gautrain have their own

company website. This allows the consumer,

belonging to any segement, to access

information about the Gautrian according to

their needs and desires (Keller, 2013). It goes

beyond a form of advertising by representing a

venue for facilitating exchanges between

businesses and their customers (Shimp, 2010).

b. Social Networking Sites

As mentioned earlier, Gautrain’s social

networking sites include:

Facebook :

https://www.facebook.com/Gautrain

Twitter:

https://twitter.com/TheGautrain

Youtube:

http://www.youtube.com/user/GautrainSocialMedia

Figure 13: Billboards

Figure 14: Television Advert

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All of these sites not only help to provide

information to existing customers (such as

maintenance or project updates) but also help to

‘sell’ the Gautrain brand to prospective

customers by providing information, new

updates in their product offering, as well as any

other news.

c. Mobile Application

Gautrain offer their customers an app that can be

downloaded which allows them to check train

and bus schedules without having to go onto the

website.

Customers are able to check the timetable,

stations, as well as calculated the approximate

fare for a specific route.

3. Public relations

Public relations are considered a brand amplifier.

This is because it can strengthen the effects

produced by the other marketing activities

(Keller, 2013). Public relations may be

conducted in the form of fund-raising which

Gautrain is using as a strategy as mentioned

previously. Their “Blanket Run 2013” drive is a

tool to create a favourable brand image and also

to get people talking about them through word-

of-mouth (Keller, 2013).

5. Recommendations

5.1 What Gautrain can do to improve their current status

Gautrain has often been classified as a “means of

transport for the rich” by popular figures such as

the SA Communist Party general secretary Blade

Nzimande (News24, 2012). This does have a

significant impact on the marketing campaigns

and strategies that Gautrain may then adopt in

order to appeal to the middle to lower income

earners who may have a distorted brand

perception of the Gautrain service.

Gautrain should therefore make use of

aggressive marketing campaigns that can help to

reinforce the brand image in the South African

market as a transport service that is meant to

increase convenience and speed of travel from

commuters between Pretoria and Johannesburg.

The brand may make use of traditional

marketing tools such as television and radio

adverts in order to increase awareness of the

brand image and position in the market in order

to increase the adoption of the Gautrain service

and the sub-brands such as the Gautrain bus

service.

The Gautrain may also try and increase the level

of usage for its Bus services in particular by

making use of incentives such as promotions and

subsidized tickets to target the student-market.

This can be made possible if the firm is to

establish partnerships with government in order

to subsidize the fares charged to students be it

primary, secondary or tertiary.

Figure 15: The Gautrain Mobile App

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5.2 What Gautrain can do to improve on their brand elements

In order to improve on Brand elements, Gautrain

may make use of these strategies:

Maintaining Brand consistency:

According to Murphy (2011), maintaining brand

consistency plays a key role in reinforcing brand

identity to current and potential consumers of the

brand. This is a key factor in helping to reduce

problems associated with poor brand

positioning. Gautrain has been largely associated

with high quality services over the years and in

order to remain competitive as a transport mode

that can be adopted by the market, it will be

essential for Gautrain to ensure that its service to

the people in Gauteng is consistent and remains

of high quality to ensure maximum customer

retention and increase the adoption of its service

on a wider scale as it helps to save on time.

Protecting Brand equity:

Every brand should always be protected by its

owner to protect it from potential misuse

(Braunstein, 2011) and it is also important for the

firm to try and uplift its brand equity and prevent

it from depreciating. Besides quality of service,

other sources of brand equity may also include

comfort, safety and reliability. The prices for

Gautrain are slightly higher than those for

conventional means of transport such as

commuter taxis and metro buses. The biggest

factor that has been used to justify this premium

pricing strategy has been because of the brand

features which have managed to attract many

commuters in the Gautrain region. It will

therefore be crucial for Gautrain to always make

use of the brand features in marketing its service

and ensure that the sources of brand equity are

maintained by not lowering the standards that

have already been set. Rather the Gautrain can

increase the levels of brand equity even further

in order to foster an even greater competitive

advantage.

Fortifying vs Leveraging:

As a way to increase the adoption of its sub-

brands such as the Gauteng Bus service,

Gautrain may try and make use of the brand

leveraging strategy in order to increase the levels

at which these sub-brands can be adopted by the

market. The Gautrain Bus service will therefore

be closely associated with the Gautrain train

service in order for it to be also linked to certain

brand features such as reliability and high levels

of comfort.

The fortification stage aims to link an elaborated

brand image to the image of other products

produced by the firm in different classes

(Gautam, 2002). Gautrain may also make use of

the fortifying strategy in order to increase the

amounts of users of its Gautrain Bus-Service to

a certain extent. This can be done by

compromising on comfort in the bus by lowering

the bus-fares which increases the number of

people who board this bus service at any given

time. This will be beneficial in helping the firm

to increase the levels of adoption of its Bus-

service sub-brand as they may then be able to

gain market-share at their competitors’ expense.

However this should be done carefully in order

to reduce the effects of poor brand positioning

that may arise.

Fine-tuning the Supporting Market

Program:

This can be done by making use of the product

related components. Brands whose core

associations are primarily related to performance

attributes or benefits, innovation in are critical

elements to maintaining or enhancing brand

equity. The Gautrain brand may make use of

revitalising strategies as well in order to increase

the brand awareness and potential service use by

the market.

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5.1 Recommendations for pricing, peak and off-peak periods

When the Gautrain was conceived, its goal in

terms of commuters was to transport 100,000

people per day on average. Currently, Gautrain

transports about 40,000 to 45,000 a day. The

Gaubus transports between 14,000 and 16,000

passengers a day. However, during off-peak

these numbers plummet (Gautrain, 2013). To

increase this, Gautrain should alter its pricing

strategy by providing incentives for off-peak

uses such as cheaper fares. During peak periods,

the Gautrain often gets full to the extent that

many commuters are forced to stand in packed

spaces. Countering this would require

investment in new train sets and cars. This

investment should be made in conjunction with

increasing the number of off-peak commuters to

cover the costs of extra train sets. This would

counter the overcrowding of the Gautrain, thus

allowing it to maintain its brand positioning as a

comfortable and pleasurable experience.

In terms of Gautrain’s pricing policy and its

target market, the extensive research we

conducted has led to the following response to

criticism of Gautrain not catering to the lower

segments. Gautrain’s main objective was to

alleviate traffic on the highways. This means

converting car users to public transport users.

Thus, Gautrain’s initial market segment has

always been the affluent middle and upper class

that can afford cars and petrol, but are seeking

alternative modes of transport. Gautrain should

not try to capture a market of different social

class, but should rather make efforts to increase

the use of its services amongst its current

targeted social classes. The Gauteng government

should not force Gautrain to cater for the lower

market, but should rather invest in substitutes

such as the Metro Rail, Taxis and bus services.

5.2 Recommendations for brand alliances

Gautrain has strategically positioned its stations

in its most urban and commercial areas to

optimise its services. Stations such as the

Sandton station, Rosebank station and Centurion

station attract the most commuters because of

their close proximity to urban developments

such as shopping malls. However, some areas

such as the Midrand and the Park Town station

are not attracting as many commuters as

required. This is mainly because they are

surrounded by as many urban developments, and

if they are, those developments are not as

attractive. Gautrain needs to form alliances with

development organisations. Gautrain would

benefit from the extra traffic caused by the

development projects, and the development

organisation would benefit from Gautrain’s

service, which would provide access to more

consumers.

5.3 Recommendations for advertising and displays at stations

Currently, Gautrain makes use of static, poster

advertising that vary in sizes at all of its stations.

These only engage the sense of sight. Gautrain

should make use of more interactive advertising

that engages more senses such as hearing and

touch. Interactive advertising has the

characteristic of capturing the attention of the

consumer and maintaining it. This allows

Gautrain to deliver more brand messages

effectively, as well as reduce the perceived

waiting time for trains. This may be done

through flat screen displays that have looped

advertisements. This also leaves space for

renting out advertising space, thus adding to

Gautrain’s revenue. Gautrain can also play

background music as a source of entertainment.

The displays and sounds would need to be

synchronised with the announcements so as not

to distract people from announcements made by

Gautrain. These displays also allow for real-time

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updates of Gautrain services. The trains used

exclusively for airport may also include screens

that display airport fights and fares as a way of

keeping commuters informed and adding to their

convenience.

5.4 Recommendations for supplementary modes of transport

The Gaubus acts as a great feeder system for the

Gautrain. However, Gaubuses are limited by

route agreements with other buses and taxis.

Thus, the Gaubus cannot reach as many places

as required, especially since it is the new player

on the scene. In order to extend its reach,

Gautrain can introduce “Gaucabs”, which would

act just like the current cabs, but linked to the

Gautrain. This means that commuters can use

their Gautrain gold cards to pay for the fares, of

which may be augmented to promote the use of

the Gautrain, such as the different prices of using

the Gaubus if one is also using the Gautrain

within an hour. Gaucabs may consist of branded

reliable motor vehicles of different styles. For

example, smart cars for a small amount of

travellers (depending which make), hunchbacks

and sedans for 4 to 5 travellers, SUVs for 5 to 6

travellers, and even minibuses for larger

amounts of commuters. The fares of the Gaucabs

can be priced in terms of the style of the vehicle,

as larger vehicles cost more to maintain than

smaller vehicles. The minibus Gaucabs may

even be used for tourists to tour certain regions

of Gauteng. These Gaucabs would extend

Gautrain’s reach and would act as further feeder

systems. The wider reach would add to

Gautrain’s image and positioning of

convenience, thus strengthening its brand image.

The Gaucabs would act as an additional source

of revenue for Gautrain. Lastly, Gaucabs are also

an opportunity to form alliances with car

manufacturing companies to supply them

vehicles in exchange for marketing efforts.

6. Conclusion

It can be seen via this brand audit, that Gautrain

is indeed a strong brand with high brand equity.

Gautrain’s main success factors are convenience

and sophistication. The Gautrain system rivals

international railway systems with its operations

system, its engagement with the market through

various marketing means, its use of the internet

and technology to simplify and speed up its

processes, and its use of other modes of transport

as a feeder system. The Gaubus is a large

contributor to Gautrain’s traffic. It acts as the

extended arm of the Gautrain, allowing the

Gautrain to reach other areas without having to

develop too many stations. However, there is an

opportunity for Gautrain to extend its reach

through business model extensions such as the

recommended Gaucab. Gautrain’s brand image

is directly in line with its target market. This

target market is the affluent middle and upper

class looking for alternative modes of transport.

Gautrain has done well in attracting 40,000 to

45,000 of them on average daily. However,

Gautrain will have to augment its pricing policy

to capture the same market at different periods to

optimize profits. Gautrain should also form

alliances geared towards development in the

surrounding areas of the Gautrain stations.

Although a company is never perfect, and there

is always room for improvement, as seen by the

recommendations given. Gautrain was a first for

South Africa, and we can only hope that it

continues to grow and strengthen and become a

dominant power in public transportation.

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