In 1991, under the directives of the State government, Queensland Rail (QR) followed the lead of other government departments and other Australian railway systems on the road to corporatisation. This was in line with the government's aim of improving the economic performance, efficiency and accountability of some Government Owned Enterprises (GOEs) in the public sector.
The Manager Rollingstock Engineering (MRE) section of OR provides engineering consulting services to the rest of the business. To encourage a tighter control on costs, internal cost centres were established within the organisation with a system of customer-supplier relationships connecting them. This was followed by a transfer pricing system where each cost centre pays and charges for goods or services provided. To promote competitiveness and fair pricing, internal customers were given the option of outsourcing services.
For the MRE to maintain its existing customer base, it needs to have a marketing plan which identifies its key customers and its capacity to satisfy these customers. This report seeks to develop a theoretical conceptual marketing framework which is then used to set key objectives, analyse the current situation and propose strategic marketing options for the MRE.
The MRE enjoys a strong strategic competitive advantage at present which is mostly due to its relationships with its internal customers whicJ1 have been forged over many years. However, there are a number of "negative gaps" perceived by the customers which must be corrected if the MRE wishes to remain competitive in its chosen target markets. The MRE must increase the flexibility of its service to enable a better fit with the customers needs while maintaining service quality and on-time delivery.