EXECUTIVE SUMMARY:This report is made to analyze the marketing strategies owned by TCS Courier.The report starts with giving vision and mission statement brief profile of TCS courier including its main postsand services all over the world.Further, the report provides in-depth analyses of company͛s market position by studying the weakness,strengths, opportunities and threats to cope up with competitors. It will then view the different modes ofcommunications used to provide services to their customers and their devotion to provide courier serviceswith in the country Pakistan and across the seas.The aim of this report provide a tool which will assist strategy group and the management teamSpecialists in making correct decisions as how to penetrate the Pakistan market and how to catch themaximum opportunities in dealing with business partners in this country.INTRODCTIONTCS is a service-driven company whose primary thrust is specializing in collecting, loading, unloading, clearing,storing, picking up, and delivering all types of carriage-able goods and documents at the doorstep of its clientsthrough the fastest, most reliable and secure means. TCS mission is to provide service and value to customerswhich will contribute to their success while maintaining a decent profit as described by Mr. Janjua. Ever sinceits inception in 1983, TCS Pakistan has continued to lead, the courier and logistics service industry in Pakistanthrough innovation, pioneering spirit, commitment and passion. Starting with just 25 shipments, the TCSExpress saga now spans five continents. TCS with its international look now caters South Asia with over 2000locations in Pakistan. TCS Pakistan has also largely helped redefine the very path and direction for the entireindustry to follow. TCS is comprised of four major business units which are as domestic courier services,international courier services, overland express and sentiments express. Domestic courier service is the mainunit of TCS which is offering a wide range of services including same day express, overnight express and secondday express throughout 350 cities in Pakistan. International courier services covers over 200 countries.Overland services include door-to-door pickup and delivery, regular daily departures from all major cities toover 150 locations. On its first day of business May 3, 1983- TCS booked just 25 shipments across the country a figure which has multiplied 8,000-folds withan average daily bookings and pick-ups of over 200,000 in Pakistan alone to emerge as the countrys topcourier service today. It offers services to cater all needs and all pockets. TCS has emerged as the most trustedname for delivering a wide range of time-sensitive documents, packages, parcels and cargoes not only todestination within Pakistan but also to destinations across the world. It has the biggest fleet in the organizedsector in Pakistan comprising over 100 vehicles 22 trucks, 20 inter-city runners and the remaining within-the-city transport vehicles. It also has a network of 200 Express Centers across the country backed by a fleet ofover 1,200 motorcycle riding couriers. TCS has a 3,000-strong workforce and prefers to call its staff andworkers as our people. And a 24-hour Customer Service is always on stand-by. TCS business operation relieson a sophisticated hub-and-spoke system that is designed for maximum efficiency. Domestically, the companyoperates air planes that fly a unique route system covering five key hubs. Despite its dominant marketposition, TCS had a host of aggressive competitors in Pakistan. Four major biggest competitors are OCS, TNT,Leopard and BMS. Each of these companies competed with TCS in at least three of its four principal businessunits.DISSCUSSIONVISION"TCS will be recognized and respected as professional, innovative, profitable information, and knowledgebased logistics/services enterprise. TCS embeds internet based technologies into its internal operatingstructures and as business solutions for customers; with customer, employee and shareholder interests at thecore of its operations; demonstrating a clear concern for ethical conduct and good corporate citizenship; with
the objective of growing into a regional and global player, with emphasis on the Middle East, Europe and NorthAmerica".MISSION"To direct all our organizational efforts at building upon the existing organizational strengths and brandrecognition to achieve enhanced levels of profitable growth in the core business, and diversify into new areasthat compliment and supplement the core business, with the diversification aimed at achieving excellence andindustry leader status in the new areas. The TCS People will however be encouraged to be open tounconventional ideas and services and recognize new trends at very early stages".PURPOSEPurpose of TCS is to continually strive to achieve excellence - both on and off the job.The attempts on the part of the authorities of the postal system to introduce new services and improve theexisting ones aimed at instilling the public confidence would not have come without the presence of courierservices despite the fact that postal and courier services are aimed at two different segments of the market.However, Pakistan Postal Service floated a warning in the print media early last year advising the people not touse courier services by evoking Postal Act of 1897. The law should be amended to reflect the realities of today.The Post Office Act of 1897 stipulates that picking up the mail was the sole prerogative of the Post Officeadding that courier service providers, including his company, are not picking up the mail but rather picking upthe documents as mentioned on forms filled by the people. In addition, the law has been changed in the UK,the former colonial master, itself. An important aspect of the antiquated law is that it fails to provide anadequate definition of the word letter. In any case, in the changed world of today the law should be maderealistic. The courier operators like to work with the Post Office as a partner and do not view the post office asa competitor. This gesture on the part of the courier operators needs to be reciprocated.In most countries of the world the public sector postal services and growing side by side with the privatecourier operators. Here in Pakistan, we are also happy to note the positive pro-customer approach adoptedlately by the Pakistan Post Office. The ultimate beneficiary of this healthy competition will be the customers asany competition which is based on fair play and best business practices always result in market expansion andoverall growth of the business.There is a dire need for the establishment of Transport Regulatory body but also the importance of a freemarket economy. Any ceiling on rates or any arbitrary setting of standards will do more harm than good. Suchinterferences may lead to inefficiencies and will also take a toll on the quality of service. In addition, due to theinherent conflict of interest the public postal service is just not acceptable as a regulator because it does havea direct stake in the business. I feel that as long as the players abide by the rules there is no rationale forintervention.It has created new opportunities in term of new services despite resulting in reduction of certain drop in sometypes of documents. It has rather created new markets and new services for the courier business. For instance,the Amazon dot.com, the worlds biggest book seller online, has to use courier service to delivery its products.The same is the case with all other online auction and B-2-C e-commerce sites which have to use the couriersfor delivering products bought online. We ourselves have benefited from online banking services, likeelsewhere here in Pakistan as well, as credit cards and mobile phone bills are delivered by the couriers. Inaddition, there is the legal aspect whereby only original documents of certain documents and only hard copiesof another set of documents are acceptable. Despite predictions completely paperless offices dont still exist.Yes there has been an impact but the advantages have so far offset any and all losses combined. Latesttechnologies have been rather beneficial to the courier service providers.INVESTMENT & MARKET
Head of Marketing of TCS, Najeeb Nayyer, informed that the company has made direct as well indirectinvestment of around Rs 200 million during the last two years. "What has prompted us to make thisinvestment is that we have seen positive signs of growth after 9/11. The encouraging signs have been all over;infrastructure developments projects like the Gwadar Port and Railways; the beginning of policing by theNational Highway Authority; substantial drop in the cost of capital; drastic cut in the bandwidth rates by thePakistan Telecommunication Company Limited; expansion of the Lahore International Airport; construction ofa new export cargo terminal at Karachi, etc., etc. TCS purchased 700 motorcycles for its couriers. We haveinducted the latest technology and TCS has its own Virtual Private Network (VPN) to connect all its centresaround the world to track data to ensure smooth and seamless flow of shipments 24-hours a day. In additionthe 200 TCS outlets across the country are now computerized and most of them are linked by WAN andInternet." 80 per cent of all the TCS shipments comprise documents while the remaining 20 per cent consist of parcels.Though documents still make the biggest part of TCS business trends show that our business is moving towardsparcels by each passing year. In last three years the volume of parcel business has registered a healthy growthof as much as 300 per cent.Corporate sector is the biggest user of our services. Around 75 per cent of our entire business comes from thecorporate sector while the remaining 25 per cent comes from individuals and others. The volume of businessfrom these two main categories of cients has registered a steady growth during last three years and thegrowing parcel business indicates that the economic reforms of the government have been successful to greatextent.Putting the size of the courier market in Pakistan at Rs 4 billion it is evenly divided between the domestic andinternational business. There is Rs 2 billion market for courier services for both the domestic and internationaleach. TCS is market leader in the domestic courier business sharing 50 per cent of the business while its sharein the international business is a healthy 10-12 per cent.TCS feels that growth in near future will come from international business as evident from tremendous growthin the volume of parcels during the last few years and as trends show that remaining cost-effective in thedomestic market is dependent heavily on turnover. "We have our international hub in Dubai and is nowdeveloping it into a niche. TCS has elaborate arrangements with international operators to provide the fastestconnection worldwide from Pakistan. TCS has affiliations with such giants as DHL and Fedex in the US, OCS inJapan, TNT in the UK and Aramex in the Middle East to provide its customers the top notch services.VALUES:The values that TCS deliver are y TCS people should direct every effort to deliver maximum value and satisfaction to our customers. y Efficiency will be the hallmark of TCS people to optimize profitability and growth. y Nothing unethical shall be practiced by TCS people in relation to our customers and the world at large. y Justice to be the guiding principle of TCS people. y Exemplary Conduct Inspirational and motivational in everything that TCS people accomplish.TCS SERVICES: International Services TCS has a strong presence not only in Pakistan but also in the Middle East, Europe, UKand North America. TCS offers international delivery services. International Documents and Parcel ExpressDelivery to over 3,500 destinations across the world through its extended International Network. TCSinternational services are: y Red Box y Students Express
y UAE Express y International Domestic & Parcel y Express Delivery y Domestic ServicesTCS has emerged as the most trusted name for delivering a wide range of documents, packages, parcels andcargoes within Pakistan. Domestic ExpressDelivery Services includes: y Same Day Express y Extra Special Express y Over Night Express y Second Day Express y Third Day Express y Red Box y Express TubeSpecialized ServicesTCS facilitates clearance and delivery of cargo both from Airports and from Seaports. Swift trucking is nowavailable to most destinations in Pakistan and Middle East Sentiments Express With over 17 years of carryingmessages of joy, affection and emotions, TCS Sentiments Express takes pride in being the messenger of themost special moments of your life. Offering a range of gourmet cakes, floral bouquets, ethnic sweets, giftitems and much more, Sentiments Express is the perfect way to communicate your feelings without sayinganything at all.TCS Flying Warehouses:TCS has a totally independent and self-reliant cargo operation. This provides the added advantage of flexibilityin creating products linked to a pricing strategy that can only delight the customer and enhance customersatisfaction. TCS is the first, and the only Courier Service in Pakistan to have a committed and dedicated fleetof 4 aircrafts. Reinforced with the two AN-12 aircraft, TCS Air Operation ensure timely connectivity to all majorhubs namely Karachi, Multan, Lahore and Islamabad, with improved material arrival timings resulting in earlierdeliveries, and the flexibility to customers for late evening dispatches. TCS is also exploring the use of smalleraircraft like Twin Otter, Dornier and Cessna types with 1-2 ton capacity to operate on shorter sectors whereload demands are not high at this stage.Mail Management ServicesAt TCS, innovation is a norm and the only objective in view is creation and delivery of business value tocustomers. Value is the most significant outcome expected of every business process. Mail Management is oneprocess yet to be recognized as a source of value in local business environment. TCS promises to deliver thisvalue through its innovative service - MMS. MMS - Mail Management Solution stands upon the single largestinvestment in infrastructure, made by TCS for continuous delivery of value. MMS is equipped with state of theart printing and sorting technology that has been sourced from the best suppliers across Europe and AsiaPacific. This makes TCS the only end to end solution provider in the category with the largest delivery networkin Pakistan.TCS SWOT ANALYSISInternal Assessment StrengthsTCS has a totally independent and self-reliant cargo operation beside this following are the other strengths ofTCS: o Branches across the country. o Initial learning and benefits from DHL͛s systems. o TCS has its own airplanes and operates them on their own licenses.
o TCS has done and doing extensive market researches. o Holds more then 55% share in Domestic Market. o TCS covers more then 200 countries. o TCS holds 7% share in International Market. o TCS holds more then 50% market share in Overland Express. o TCS holds more then 60% market share in Sentiments Express. o TCS business operations rely on a sophisticated hub-and-spoke system. o TCS has 5 major hubs in Pakistan with round the clock sorting facilities. o TCS owns its own fleets of Trucks, Vans and Motorcycles. o TCS relies on highly trained workforce. o TCS advertises very heavily in domestic market. o TCS has been self-funded since its inception. o TCS has been able to internally generate sufficient cash for all its capital needs. o TCS has grown organically since its inception. o International operation in the UAE and Canada has been set up as joint venture. o TCS has management control for its joint ventures.WeaknessesTCS had many weaknesses during its early period which were then successfully converted into strengths, fewweaknesses are as follows: o TCS has no formal contracts with delivery persons. o TCS has not been able to continue point of delivery I.T. Support System. o TCS does not have expert I.T. Systems and support which has caused huge losses. o TCS still relies on international partners for its overseas operations. o TCS has been initially the victim of family issues. o TCS initially depended on PIA͛s support for its domestic delivery. o TCS initially relied on DHL expertise to build its own expert system. o TCS loses its employees easily and these employees join competitors.External Assessment OpportunitiesTCS has many opportunities to expand and get advantages from governments, opportunities on which TCS canfocus are as follows: o TCS can expands its international operations and get subsidy from government in the name of foreign exchange. o Industry in which TCS operates has high entry barriers for new entrants. o Expanding industries of Pakistan are opening new profits streams for TCS. o To expand its operations TCS can lease equipme+nts and take advantages of tax benefited leasing in Pakistan. o TCS can acquire funds for expansion by enlisting itself into Karachi Stock Exchange. o TCS can start price wars to eliminate small competitors. o TCS can start its own domestic passenger airline services as it has the experienced pilots, flying experience and license. o TCS can establish its own terminals at ports for huge shipments via sea.ThreatsSince its inception TCS has been exploited to number of threats, threats which TCS has faced inn past and arefacing currently are as follows: o Legislative barriers like Post Office Act of 1898 are threats for TCS. o Government bureaucracy has been a constant obstacle for TCS. o TCS has been a wary of corruption and has been asked for favors from politicians.
o TCS has a host of aggressive competitors in Pakistan. o TCS competitors are experienced and cash rich companies. o Pakistan flagship carrier PIA has started its own courier services.CONCLUSIONThere are promising signs all over, the economy is improving if one look at the substantial increase in the salesof new cars. However, it would get even better if and when the construction industry takes off. The demandwill definitely increase in near future particularly for the TCS which has introduced such new and uniqueservices as warehousing to ensure safe, secure and strategically located warehouses along with computerizedinventory management system for hassle-free shipments facilitating timely retrieval and anywhere within thecountryPakistani market offers immense potential for courier operators, particularly for the leading courier operatorsuch as the TCS. The courier and mail delivery business will grow at a steady pace her in Pakistan. However,the major opportunities will come from logistics, warehousing and inventory management as well as from theground transport and aviation sector. TCS has made appropriate investments and right plans in all these areasto play the pioneering role once again.RECOMMENDATIONSTCS should try expanding and grabbing more international market share to get foreign exchange into thecountry which has started to harvest its land for business cultivation. Maintaining focus on its core services andexpanding itself into related chain of services like introducing domestic and international airline services willgive TCS new streams of profits. TCS must take advantage of strategic location of Pakistan and establish itsown terminal and ports to handle specialized container packed sea cargo. TCS should also start its owninternational cargo delivery towards end destinations and try to make itself self-reliant in internationalmarkets. Besides going into new business TCS should also strengthen its work force and train them forexpansion. Training programs for employees should be future oriented and objective in nature. TCS shouldlook closely towards their competitors who are rich in both experience and finances and build a strategy todefend itself in future expansion plans of competitors.