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DHL Presentation

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  • 1. Analyzing Services Marketing Aspects of…
  • 2.  
  • 3. The Company
    • DHL Pakistan has been operating in Pakistan for 26 years now
    • Started functioning as a proper franchise of DHL in March 2008
    • Market leader in international courier service with a market share of more than 65%
    • Major Competitors are FedEx and UPS
    • Main focus of business is international courier service and shipments only
  • 4. DHL NETWORK
  • 5. Dreams & Goals
    • Dream: “ To be a premier logistic company ”
    • Goals:
      • 1- Grow import business
      • 2- Increase market share to 75%
      • 3- Ensure that DHL stays no.1 in Pakistan
      • 4- DHL should be “First Choice” of the customers.
  • 6. Why Trust DHL?
    • Knows the market better than others
    • Tailored and innovative processes
    • Global freight management and consolidation capabilities
    • Dedicated distribution network
    • Only courier company in Pakistan to offer import services
    • Immense help from its international head office
    • Range of product portfolio and service offerings
    • High Quality, Innovative Delivery Solutions
    • Effective customer service
    • In house customs (makes the in bound and out bound shipment process more quick)
    • Insurance service
    • Time definite service backed by guarantee
  • 7. Research at DHL
    • Normally researches are done to find out:
    • Customer Satisfaction
    • Market Sizing
    • Product Testing
    •   MARKET RESEARCH MONITOR (MRM) is a system used by DHL for doing consumer behavioral analysis and to see the impact of advertising
  • 8. Quality-The Oxygen at DHL
    • Quality Control Centre serves at the nerve center of Pakistan
    • Utilizes state-of-the-art technology to keep track of shipments all over the world
    • No other company in Pakistan has such type of process or department.
    • Ratio of bad or lost shipments?
  • 9. Keeping Up With Technology
    • DHL Connect
  • 10. Keeping Up With Technology
    • DHL Web Shipping
  • 11. Keeping up with Technology
    • DHL EasyShip
  • 12. Keeping up with Technology
    • DHL Import Express Online
  • 13. Keeping up with Technology
    • DHL FastTrack
  • 14. Keeping up with Technology
    • DHL Etrack
  • 15. Keeping up with Technology
  • 16. Pricing Strategy
    • Pricing depends on various factors like:
    • Regions: Rates are applicable on the basis of different zones. Depends on
      • Distance
      • Frequency
    • Fuel Charge
    • Volumetric Weight
    • GST
  • 17. Going the Extra Mile: Ethics
    • Provided Logistical Support to Tsunami-Hit Countries
    • DHL Express developed its Corporate Citizenship program with employee involvement at the heart of every stage of its creation.  This project reflected employees’ interests and supports children with disabilities through fundraising activities.  It was led by a dedicated Employee Committee and raised £50,000 across the UK and Ireland in the first three months of its existence .
    • Skills in Motion’ program, developed by DHL Express to provide opportunities for employees to undertake ‘skills sharing’ placements with their community partners
  • 18. Business Divisions
    • Three types of business in courier industry
      • Air Express (Shipment of packages between ½ kg to 500 kg
      • Freight (Any shipment above 500 kg is freight)
      • Logistics (Warehousing, Supply Chain Management etc.)
    • DHL categorizes these businesses under 3 different business units:
      • DHL EXPRESS
      • DHL FORWARDING
      • DHL Exel
  • 19. DHL Customers
    • DHL basically has divided its market into two segments
      • Accounts (B2B) (more profitable)
      • Retail/Cash Customers (B2C)
  • 20. Making Intangible, Tangible…
    • Packaging
    • The location of DHL near airports helps to some extent in creating tangible aspects for DHL
    • Measurable Service Performance (9:00 express, 12:00 express)
  • 21. Types of Services Services Accounts (B2B) Retail (B2C)
      • Worldwide Document Express
    √ √
      • Worldwide Parcel Express
    √ √ Import Express √ √ Heavyweight Parcel Express √ √
      • Junior Jumbo, Jumbo & Mega Box
    √ √
      • Fashion First
    √ √
      • Time Definite Delivery
    √ √
      • University Express
  • 22. So What’s Different?
    • Processes
      • Account customers don’t go to Retail outlets at all. Shipments for export are collected from their head office.
      • Accounts customers are assigned specific Territory Sales Managers
      • Cash customers are required to drop their shipments at the Retail Outlets by 7:00 for the goods to be sent out the next day.
  • 23.  
  • 24. So What’s Different?
    • Channels
    National Channel : Big accounts like big corporations, textile, banks etc. Relationship Segment : Mid size accounts like small textile companies, oil and gas companies and surgical Direct Segment : retail customers National Sales Manager National Segment Manager Relationship Segment Mngr. Direct Manager ASM ASM ASM ASM TSM TSM TSM TSM TSM TSM TSM TSM Retail Managers Tele Sales
  • 25. So What’s Different?
    • Pricing: Discounts are higher for B2B market as volume and frequency of shipment is high
    •   Promotions
      • B2C: Print, Radio and Billboard
      • B2B : Direct Marketing and Personal selling. Direct mailers used followed by phone and visit. B2B campaigns are less costly
  • 26. A Typical B2C Ad
  • 27. A Typical B2B Ad
  • 28. So What’s Different?
    • Segmentation
      • B2C: No visible difference as such in customers who come to retail outlets.
      • B2B: Differentiation on the basis of industries such as textile, pharmaceutical, surgical goods etc.
  • 29. But..Everything’s Not Perfect
    • The import service needs to be improved. Import service contributes to only 10-15% of the total revenues.
    • The problem is that local freight forwarders provide service at lower price. Whereas DHL is a premium priced brand.
    • Find untapped segments in B2B and B2C markets
    • Form strategic alliances with other companies (For Example: DHL & Nokia partnered on Valentine’s Day campaign)
  • 30. Recommendations
    • Make efforts to tap small industries like the Hotel Industry which are few in number but yet have high weight imports or frequent imports
    • Downward line extension to offer low-price import services with a different brand name altogether
  • 31.
    • Thank You =)
    • Questions?