Next Best Offer (NBO)
Next Best Offer (NBO)
A RESEARCH STUDY PROPOSAL FOR CTM
A RESEARCH STUDY PROPOSAL FOR CTM

Al Akhawayn University.
Al Akhawayn University.
Nandy BEUGRE
Ali MOQTAD

Supervised by:
Doctor Asma HILALI
Nandy BEUGRE
Ali MOQTAD

Supervised by:
Doctor Asma HILALI

Fall 2015.
Fall 2015.

“We work every day towards the goal of expanding our network and becoming a major player on the continental level. To achieve this vision, we decided to conduct an ambitious and proactive policy, based on the quality, safety and innovation.”
Mr. Ezzoubeir Errhaimini,
CEO of CTM

“We work every day towards the goal of expanding our network and becoming a major player on the continental level. To achieve this vision, we decided to conduct an ambitious and proactive policy, based on the quality, safety and innovation.”
Mr. Ezzoubeir Errhaimini,
CEO of CTM

Introduction

“There will always, one can assume, be need for some selling. But the aim of Marketing is to make selling superfluous. The aim of Marketing is to know and understand the customer so well that the product or the service fits him and sells itself. Ideally, Marketing should result in a customer who is ready to buy”. Peter Drucker. *
The following research study is about customer satisfaction with CTM services. CTM (Compagnie de Transport au Maroc) is the leader among transportation companies in Morocco. This company exists since a century and has achieved so far the great challenge to position itself all around the country and expend abroad. This is illustrated by its great finanacial perfomances. According to the Casablanca Stock Exchange, CTM stocks has sol for 419 MAD last Friday December, 4th 2015 with a positive variation. Felleson and Friman (2008) have realized a study on customer satisfaction in transportation in eight European cities. They have depicted four main satisfaction factors, which were related to the system, comfort, staff and safety. Another research study in Indonesia realized by Budiono (2009) has revealed two factors of satisfaction in transportation namely “soft quality” and “functionality quality”. Based on our observations, it seems that CTM customers tend to perceive CTM as less valuable than before. Indeed, even if CTM makes a point in delivering a real experience while traveling, it does encounter some weaknesses that disappoint customers who also start to increase their expectations. The main research objective of this study is to come up with some suggestions to CTM of NBOs (Next Best Offers), which will help CTM to perfectly fulfill the needs of its customers.

After the background of this research study, the problematic that lead us to undertake the study will be establish. Then, the research question to be addressed will be set and finally the proposed methodology will be depicted. *

Background information (the context)

CTM presentation:

CTM which stands for “Compagnie de Transport au Maroc” was established in 1919, by Epinat, a French businessman. The firm has been part of modern Moroccan history as a leading transportation firm and distance remover among remote cities. From national and international passenger transportation, stopping by touristic transportation to shipping services, CTM shows a diversified range of services. In 1993 the firm was privatized and joined the Moroccan stock exchange.

CTM or “Satyame” in the common Moroccan usage became the generic term for long distance buses, which shows its notoriety within the Moroccan market. The firm improved its services through modernization and an aggressive communication policy. The firm has three main shareholders: Joummani Group (23%), Asma invest (5%) and RMA WATANYA (49.5%).

The Vision statement of the company is summarized by Mr Ezzoubeir Errhaimin the firm’s CEO as the follow “Working everyday towards the goal of expanding our network and becoming a major player on the continental level.” This shows the strong commitment of CTM in increasing its market share not only within Morocco, but also in the whole African continent.

SWOT analysis; (Satisfaction Survey)

Strengths * Strong brand image within the Moroccan market because of its quality and safety * With the launching of Premium buses CTM became the first company to offer high quality services. * CTM’s network is more expanded compared to other transportation companies within Morocco * Diversified range of services (Individual transportation, tourism and business transportation and mailing services) * CTM is also known for its shipping services as it reaches many cities in Morocco * CTM is the first transportation company in Morocco to launch an e-commerce platform.

Weakness: * CTM only targets the middle and high class customers * CTM is not active online * Its website is not dynamic * The information disclosed in the website are not regularly updated.

Opportunities: * Tourism is considered to be an increasing sector, which can be beneficial to the company * The expansion of services offered abroad is quasi empty in the transportation sector in Morocco.

Threats: * The increasing prices of fuel * Strong competition from the ONCF and the future TGV * Threat of substitutes (Cars, Grand taxi...), mainly for short distances. * CTM have six main competitors Supratours (ONCF), Trans Ghazal, STCR, SAT, Satcomas Sata, and Transbilad.

Macro- Environment

Political – Legal
The Moroccan government is encouraging the sector of transportation with subventions and easy access to the market.
Socio- Cultural

Technological
The sector of technology is growing in Morocco with an increasing presence of customers among socio-medias platform. At this level not only the presence, but also the responsiveness of CTM online would be a great asset. In effect, CTM is not enough active online.
Natural
Morocco benefit from a mixt landscape. The south is more arid with the desert while the landscape in the north is more composed of forests and mountains. This particularity has not been an obstacle for the Moroccan government, which has very well developed the road system across the country.
Economic
According the Ministry of Economy in Morocco, the economy is in a very good standing, the buying power of Moroccan is increasing. They are willing to spend more and more in fancy products such as the premium service offers by CTM.
Demographic
The Moroccan Journal Telquel has disclosed in the lines of its issue of March 16th the population of Morocco according to the last census report. The population is 33, 8 millions of people and is expected to increase in the coming years. With this growth, the sector of transportation is expected to face an increase as well.

* Current segmentation of CTM * CTM is currently targeting two main segments: the Moroccans (citizens and firms) and the tourists. * Moroccans: * This segment is composed of Moroccans between 20 to 70 years in average who are willing to travel on a regularly to visit family, for professional or educational reasons. * The segment is also composed of Moroccan firms for transportation of their staff or for shipping within the country. * Tourists: * The segment of tourist is composed of internal and international tourists who want to the visit the country. * * Current advertising and communication means of CTM * As of today, CTM is present online with a website and also a Facebook page. It is also present in almost all the cities in Morocco with its own bus station and use TV channels to advertise as well. * * Buying process * CTM propose to its customer a panel of service. There are the regular buses for transportation across the country, the VAN for transportation of staff, the lorries for mailing within the country, and lately the premium buses with extra services offers. * The typical customer can go directly to the CTM buses stations to order a ticket or send her items for shipping. The other possibility is to book a ticket through the website of CTM where all the details for the travel schedule are disclosed. * * Problematic
The transportation sector in Morocco is pretty well developed with safe roads and good infrastructures compare to the rest of Africa. One can easily have a turn around all the country since many towns are accessible. This is one of the great achievements of CTM: propose several transportation lines all around the country. As an example, CTM is the only one to propose the line Agadir – Ifrane. However, in many cases it has been observed a discrepancy when it comes to punctuality or availability of buses. * Moroccans do have travelling habits and internal tourism is well developed while the expectations of the users are not fully addressed, nor do they anticipate with an increase level of complaints about transportation companies especially CTM, which is not perceived to respect its promises in terms of quality. * * Satisfaction factors: * After reading studies related to our topic such as the one cited in the introduction, we have noiticed that the most common factors of satisfaction were basically related to safety, punctuality, and cleaniless. *
Marketing research overview
Research objectives:
The first objective of this research study is to come with the best practices to adopt in order to increase satisfaction among users of transportation companies in Morocco especially for CTM. The other objective is to depict some Next Best Offers (NBO) CTM could propose to its customers in order to increase their satisfaction.
Research questions:
This research study aims to understand to what extend NBO could be a must among transportation companies in Morocco with the case CTM.

Methodology * The methods we propose to address the research question are quantitative and also qualitative. We will proceed to observations, in-depth interviews with CTM staff and users of CTM and administration of electronic and hard copy surveys. * * Observations * We have ourselves experimented some bad experiences with CTM just few weeks ago. We were about to go to Rabat and paid a round trip ticket. On the way an agent from CTM has explained to us (in Arabic, yet we did not understand it) that the bus will have 30 minutes delay. The bus came one hour after. What was disappointed is the fact that on the returning we have been late because of the traffic for 15 minutes and the bus was already gone. No possibility to be reimbursed, no possibility to convert our ticket, and none of the agent seemed to be even willing to help us find a solution. Another observation was during important periods such as l’Aid. During this last religious break in September, we have observed a real shortage concerning transportation companies all around the country, and CTM was not an exception even if its agents claimed to us that buses have been added for this period. * Another observation concerned the online presence of CTM. Overall, we have been noticed that CTM and a majority of its rivals are present online. However, compare to them, we have hound that the website was not dynamic enough with un-updated database. In addition to this, the Facebook is not active as well. We have noticed a very low number of followers compare to the segment targeted and no interaction with the users even when they complain *

* * * * * * As you can see on the preceding screenshot, Nabila has not appreciated her experience with CTM premium and complain about it no feed- back of the company. * * Interviews * We will proceed to some interviews with open questions to CTM agents, managers, and customers in Ifrane. We also target some close town to the region of Ifrane. This selective choice may bias or results in terms of representation of the population, but we have chosen this region since it is among the ones where CTM is the only one transportation company available. Thus, we will have interviewees who might exclusively use CTM to travel in the country beside their own cars. * * Survey * As mentioned above, we will administrate online and physical survey with question based on the satisfaction factors we estimate to be determinant. * Factors | * Attributes | * Safety | * Safe drive * Good equipment * … | * Punctuality | * | * Reliability | * | * Cleaningless | * | * | * | * *

We have chosen to administrate the surveys to recent users of CTM services (students, professional and tourists). We have also established the strategy to target the unsatisfied customers who have complain on the Facebook page of CTM, and also the one who have regurly like the posts of the company. It has been higly appreciated by them. They felt that they could share their feelings about what they have experienced. *

* * * * * * *
Findings
* *
References

Fellesson, Markus, and Margareta Friman. 2008. Perceived satisfaction with public trans- port service in nine european cities. Journal of the Transportation Research Forum 47(3): 93-104.

Budiono, Oktiani Astuti. 2009. Customer satisfaction in public bus transportation: A study of travelers’ perception in Indonesia. Master thesis, Karlstad University. www.finances.gov.ma/ http://telquel.ma/2015/03/16/recensement-338-millions-habitants-maroc_1438616

--------------------------------------------
[ 1 ]. equipement.gov.ma
[ 2 ]. Please refer to observations
[ 3 ]. Please refer to observations and data collection