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Issue № 76. October 2019

Segmentation of the Freight Railway Transport Market to Create Value Proposition in Collaboration with Freight Forwarders

Svetlana O. Dunaeva

Postgraduate student, Faculty of Economics, Lomonosov Moscow State University, Moscow, Russian Federation.
E-mail: sodunaeva@yandex.ru

Although the concept of value proposition is fragmentary presented in the academic literature, the initial reason to create this definition relies on the idea to explain why some companies are much more successful on the market in comparison with others. To elaborate value proposition companies should understand needs of targeted customer segments. This article presents an approach to market segmentation on the freight railway transportation along with mentioning key value elements for each segment. Formation of these segments allows creating the understanding of the current needs of each particular freight forwarder. It is a key step in the concept of value proposition, which assists in companies’ competitiveness in the railway freight transportation market. Value elements help to determine which attributes of providing services will have relatively higher importance. Such an approach has special relevance according to the fact that it is used to employ objective indicators with tendency to disregard particular subjective preferences and value orientations of customers. That is why employing value based approach with understanding of customers’ preferences can attract customers to transport their freight by railway mode of transportation. This value proposition approach creates a base to elaborate marketing strategy of railway freight transport companies.

Keywords

Value proposition, market segmentation, freight transportation market, railway transportation, competitiveness, services, value characteristics, loyalty, customer relationships.

DOI: 10.24411/2070-1381-2019-10001

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