METRO STATIONS TO BE RENAMED IN THE CITY OF JAIPUR
Three metro stations in the city will be renamed after big brands or companies.
On the lines of big cities, including Delhi, Jaipur Metro Rail Corporation
(JMRC) also gave branding and ‘semi-naming in rights’ to companies whose
name may appear as a prefix to a station’s name.
A JMRC official said, “Auctioning of semi-naming and branding rights at the
station would generate non-fare revenue for the corporation. From three
stations, the JMRC is likely to earn Rs 10 lakh per month.” The rights have
been provided for seven years, which can be later extended for the next three
years as per the contract. “Three station includes Mansarovar, Sindhi Camp and
Railway station. They will be renamed after a real estate company, a coaching
institute and a vernacular newspaper.”
An official said, in other cities such as Delhi, and Chennai apart from
generating direct revenue through auctioning of naming rights, the corporation
has received added benefits. Explaining the concept, an official said, at stations,
the undertakings that have bought the naming right also do the branding of the
stations with colours associated with the respective companies. This adds to the
aesthetic value of the station. Also, with the company maintaining the exterior
of the stations, JMRC will not have to worry about maintaining it, he said.
To make the project viable, the JMRC is making desperate attempts to increase
the non-fare revenue. As per the (JMRC) assessment, the project is staring at an
annual operational loss of Rs 41 crore for the next five years. The loss is
calculated at 60% of the ridership. The amount will rise up to Rs 71 crore a year
if the loss is calculated at 20% ridership.
a) What would be the benefits derived out of branding of public institutions?
b) What ethical concerns in naming public institutions with private brands?
c) Do you believe that adopting this model to other Public Sector Institutions
like Indian Railway can be encouraged? If yes, substantiate your arguments!
SUMMARY OF THE CASE
On the lines of big cities, Three metro stations will be renamed after big
brands or companies, This including big cities Delhi, Jaipur Metro Rail
Corporation (JMRC). Auctioning of semi-naming and branding rights at the
station would generate non-fare revenue for the corporation JMRC is likely
to earn Rs 10 lakh per month The rights have been provided for seven years,
which can be later extended for the next three years as per the contract.
Delhi, Chennai apart from generating direct revenue through auctioning of
naming rights, the corporation has received added benefits. At stations, the
undertakings that have bought the naming right also do the branding of the
stations with colours associated with the respective companies. This adds to
the aesthetic value of the station. Also, the company maintains the exterior
of the stations. JMRC is making desperate attempts to increase the non-fare
revenue. As per the (JMRC) assessment, the project is staring at an annual
operating loss of Rs 41 crore for the next five years. The amount will rise up
to Rs 71 crore a year if the loss is calculated at 20% ridership. loss is
calculated at 60% of the ridership.
ANSWER TO THE QUESTIONS
1. What would be the benefits derived from the branding of public institutions?
The benefits derived from branding public institutions are:
i. It brings popularity to the institution
ii. This could lead to increased income
iii. It brings a business identity
iv. Branding makes your business memorable and recognizable to
consumers.
v. Supports marketing efforts and brings consistency
vi. Builds credibility and trust
vii. Help in sharing the values of public institutions.
viii. Impacts internal employee retention, morale, and hiring processes.
2. What ethical concerns in naming public institutions with private brands?
i. Scams and Scandals can affect branding if done by a private firm.
ii. Hard to change perception.
iii. It would give only Limited flexibility
iv. Branding is a very expensive process to create so there will be an
issue with funding.
3. Do you believe that adopting this model to other Public Sector Institutions
like Indian Railway can be encouraged? If yes, substantiate your arguments!
Yes, since it could bring
i. Popularity to the Indian Railway
ii. This could lead to increased income of railway
iii. It brings a business identity to railway
iv. Makes business memorable and recognizable to consumers.
v. Brings consistency
vi. Builds credibility and trust
vii. Help in sharing the values of Indian Railway.
viii. Impacts internal employee retention, morale, and hiring processes.
