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Introduction The purpose of this assignment is to analyze the marketing strategy used by DHL in becoming today's largest and leading company in the market of freight and logistics industries. In this section, Ill take a look into the current market situation, competitors analysis and its external and internal factors. Finally, the recommendations on improving marketing strategy using STP (Strategy, Targeting and Positioning) tool and Marketing Mix.

1.1 Company Background DHl was founded by 1969 by Dalsey, Hillblom, and Lynn soon became the market leader in courier and logistic industry. DHL expands over 120,000 destinations that include 230 countries with 4,000 offices and more than 250 aircraft. In 1998 DHL was crowned as worlds most global company and the market shares started increasing respectively. Competitive world of business, many leading and top companies improvise and take account of their marketing strategy to sustain and survive in challenging environment. Moreover, updated technologies have made the market situation more complex and competitive. Todays business operates in highly competitive environment where different strategic approach is required to sustain (Ahmed & Rafiq, 2003). UK freight and Logistics Company covers about 54 billion to the economy and supports 5% to the GDP of United Kingdom. These huge industries of 63,000 companies have 1.7m employees currently working.(http://uk.finance.yahoo.com/). Past few years was not good for the logistics company because of the economic crisis, recession, and feeble government strategy whereas UK market increased by 9% in 2006-2012. The head office of DHL is situated at Great South West Road, Hounslow. 2. Situational Analysis 2.1 SWOT Analysis Traditionally, SWOT analysis provides intrinsic hypothesis that management executives develop the strategy according to the challenging environment. (Novicevic et al, 2004). SWOT helps to analyze the current complex situation and figure out the best possible solutions for the industry to fight back (Lynn. F. Kimi, Penn State University). It requires talented and highly skilled people who understand the attributes of the company and act accordingly. The advantages of SWOT analysis are; 1) Proper Development of marketing strategic plans and well detailed information can be used efficiently and effectively. 2) It allows co-operation between different departmental managers who has right to take decision regarding achievable organizational objectives, if in any case objectives are too hard to achieve. Figure1. SWOT Analysis

To analyze and evaluate internal and external factors of the company SWOT analysis plays a vital role in considering strengths, weakness as well as opportunities and threats (Mehta, 2000). It does facilitates better marketing planning while determining internal and external essentials (Novicevic, 2004) Strength Company always should give major priorities and build long term relationship with customer. DHL is a global player, thus acts according to the respective cultures and norms of different countries. DHL gives more priority to customer than anything else. In Sweden 2011 DHL express was honored for the best Business to Business customer service. Further, DHL provides prompt delivery service and safety insurance service with hi-tech equipment. This provides effective, efficient and great value to customer service.DHL supports GoGreen program that helps to eradicate emission of carbon dioxide caused due to transportation using external climate protection projects. Nevertheless, DHL motivates its employee with competitive salary and benefits. Weakness: - DHL is a strong brand but not strong enough being only 3rd largest company in the world. Even though prices of the services are high, customer do not perceive any difference in the services with other competitors. DHL is negatively influenced by conducting market share estimate mistakes. In this case, it has been noticed that DHL is less capable than UPS in terms of utilizing human resource to complete the given tasks. As the DHL companys charges are very high than its potential competitors in the market. High pricing of the services might lead to the loss of customers. As there is a weak utility from human resource their service will also diminish due to the behavioral changes of DHLs staff. All these reasons are the weakness of DHL to lose its image in the competitive world. Opportunities DHL along with the potential competitors apply effective strategies to sustain in the market. Surely, there is vast difference in the capabilities of the company. Companies should learn different approaches from their competitors as well. No doubt, new market entrants use DHL as a center point to expand their services globally. DHL is an established brand name whose services are flourishing more and more. It surely has taken over many powerful competitors over time. In addition, online services and globalization have added value to the company creating more package service. DHL has powerful inbuilt system to act accordance with regulatory bodies that facilitates a niche presence. On the other hand, DHL still have more space for improvements. At the end of 2013, DHL is hoping for the increment in financial returns. They anticipate that consolidated Earnings before Income and Tax to touch between 2.75 billion and 3 billion Euros (http://www.dpdhl.com/en/investors.html). DHLs

Key Performance Indicators show only 75% in 2010 which is quite low for the top companies like DHL. This indicates that DHL needs to be more attentive on human resource sector to better employee relations. Finally, developing innovative ideas and services to satisfy customer need is the key. Threats It is tough to be at the leading position all the times. There are potential of competitors such as FedEx, UPS etc. are trying to catch up with DHL. Thakkar (2005) states that the companies that are connected with 3PL are highly intricate than other logistic supplier relationships. Nevertheless, there is an economic slowdown globally. This sort of situation can adversely affect the business. In recent days, external changes like government, politics, laws and taxes etc are rapid and complex. Every business must implement effective and efficient actions to sustain in unpredictable environments. No doubt, price wars between competitors are high and unreasonable. Last but not the least; gradual vanishing of traditional services like letters is the biggest threats to DHL due to high demand of electronic communication or ecommerce. These electronic services are faster, cheaper and safer than any other courier service.

2.2 Competitor Analysis Good understanding of competitors whereabouts facilitate in increasing market share. UPS has the highest number of workforce. UPS can carry out more vital tasks effectively and efficiently than any other competitors. Adversely, increasing number of workforce can lead to increment in cost of services. As UPS was founded in 1951, the way before any other courier services, have more experience and knowledge than its rivals. UPS and FedEx have complete liability insurance regarding verification of insurance. Still in the top position, DHL is equipped with latest security system and updated technologies which increase customer satisfaction and reliability. Conversely, DHL must learn from potential competitors to provide effective and efficient service to customers. The advantages of DHL service are; 1. Aids transportation which can be set by giving attention on consumer time and shipment requirements. It even facilitates of actual time tracking of shipment from whole process till delivery. TNT is one of the trusted service providers for enterprise. 2. It provides exclusive service for enterprises such as Express Shipper, and Express Manager. FedEx has designed unique offers of valuable items to their customers. 3. It also makes sure about the security and safety of the goods during the delivery time. In terms of marketing FedEx and UPS do better than DHL due to the wide spread marketing in USA and South America. The entry of new competitors in this industry can greatly affect the decisions of strategy options. Every now and then DHL should be aware of it. Besides, innovation of new technologies indicates both threats and opportunity to a perspective competitor. Thus, DHL must use latest technology in its services for effective and efficient customer service; otherwise there is a high threat of losing leading position in the market. All these companies focus on environment impacts and act according to respective sustainability policy. Each and every action of these companies can adversely affect the surroundings and they do their best to reduce negative environment impacts and make significant contributions to the environment sustainability. As per Lieb (2005), Now-a-days 3PL relationships have become more collaborative. According to the author, to achieve the mutual target co-operation between competitors is very essential. For

instance, different 3PL companies can share knowledge, experience and skills to get the work done (large procurement). In top of everything, there is saying that companies are not successful without the competitors in the market place. (Appendix 2) 3. Recommendations. 3.1 Segmentation, Targeting & Positioning DHL in UK Offices Mail Centres Warehouses Hubs Gateways Distribution centres and delivery offices Other Facilities Service Points Source: - www.dhl.com DHL segmentation Europe, USA and Asia (Appendix 4) DHL basically has divided its market into two segments. (Appendix 5) Accounts (B2B) Business to business marketing involves transactions between two or many business. For example, business transactions between a wholesaler and manufacturer or between wholesaler and a retailer. This is more profitable types of marketing or business than business to consumer (B2C). No doubt, volume of transactions is higher than B2C which even involve the transactions of raw materials. DHL UK is pleased to work with organisations which help DHL to improve further its services. They are; Chartered Institute for Logistics and |Transport. The BCI Partnership. (www.dhl.co.uk) In future, DHL are increasing their partnership which can help them to move further up. Retail/cash customers (B2C) Business to customer marketing involves transactions between retailers and consumers. It

143 3 151 21 25 100 3 1284

basically deals with final products or services of the company. Transactions rate is quite low compared to B2B. DHL offers specialised service B2C parcel solutions that are convenient and flexible. Being consistent with the DHLs segmentation, DHLs customers are targeted on the basis of their market sectors; Multinational Companies Pharmaceuticals Oil sectors

Embassies Telecom sector UN missions Banks and many others.

Nevertheless, it is a green conscious courier and logistic company that are fully aware of environmental issues. GoGreen programs help their customers to reduce environmental footprints. DHL was the first courier company to introduce climate change target in 2008 (Green Solutions, DHL). By 2020 DHL are hoping to improve carbon efficiency of their transportation by more than 30% compared to last year. Focus of major players

Source: http://group.tnt.com/investorrelations/sectorstatistics/marketstatistics/index.asp As per the DHL facilities it provides varieties of services to the customers and online track and trace provision. Below are some of the international services which DHL offers to the customers. o Rail and Road services o Express services o Logistics solutions o Industry solutions o Air and ocean freight

Market positioning Market position of DHL as well as its major competitor is in broad market with differentiated services. DHL highly dominates the market position in Intercontinental and Europe. Around 40% of Logistic market is covered in Pacific Asia itself. DHL in US was only seven percent while other competitor were dominating like FedEx, us portal service and UPS. Marketing plans were not working for DHS and they started to lose customers during challenging environment in the year

2009 and invested millions to get back on track. 3.2 Marketing Strategies and Programs Product DHL, the global leading company for the logistics and express delivery offers diversified products and services to customers. DHL Express is very convenient service for shipping the products internationally with variety of options to choose from. While you lack time and want to deliver your products same day than DHL Same Day service is suitable. It is fastest delivery service available in the courier markets. Moreover, DHL Logistics Services even provides wide range suitable logistics and outsourcing solutions to meet the challenges of warehousing and distribution. Besides, Optional Service is the extended payable service that fulfils specific customer's needs. Regarding Dangerous Goods Service, DHL need to implement special handling procedures for hazardous and highly flammable materials. Shipment Value Protection When the valuable goods that need to be shipped are not insured for any kind of damages, loss or mishandling, Shipment Value Protection is what we need. Shipment Value Protection covers the actual cash value of the goods or repair in the event of physical loss or damage, subject to the exclusions listed in the terms and conditions. Neutral Delivery DHL Neutral Delivery Services is a carbon consultancy unit established to further reduce customer's carbon footprints www.dhl-dfg.com . It even supports worldwide climate protection program GoGreen concept. Many companies order products from overseas receive them and they again send the same products to their customer. In this case, companies acts as a middle man. DHL offers unique service to those companies who need to send the products directly to end customer from the international vendor. The best thing about the service is that it hides the commercial invoice from the end customer. The invoice is removed prior to the delivery. Due to these services companies can ship their products directly to end customer within required time without using second shipping and extra charges. www.inxpresssolutions.com Value Added Services The value added services of DHL are Co-packing, Product Assembly and other services that customer needs. Price Basically, price is the amount that customer pays for the products/services they are entertained. It also determines how consumers perceive the product and how they position the brand of the product (Dibb et al, 2001, pg.562). Companies does not set single price, it is based on variations in geographical demand, market segment needs, timing of purchase, delivery frequency and other factor.

Due to the result of heavy seasonal discounts, offers, allowances and promotional aid, company does not usually get same amount of profit from each unit of product sold. This analysis figures out the price adaptations implementation procedures by DHL. Geographic pricing (Cash, Countertrade, and Barter): Geographic pricing cover reductions for freight and transportation costs that links the distance between buyer and seller. (Marketing 2014 7th edition, William M. Pride, pg. 693). In another

words, company determine price for its products for different customer in different location in Geographic Pricing. As per DHL while expanding its services in different countries suitable pricing strategies and structure is developed. Only DHLs country manger hold the power to set the prices for its services based on locations. Typically prices are based on different factors; Current market price based on its competitors (Basically National Post Office). Initial pricing in other countries Recent pricing around the world Thus, it reflect that the pricing strategies are different based on the locations and situations. Discount and Allowances Companies do provide price discount and allowances to the customers who are eligible. For example, while buying in bulk or volume purchases, early payments and in off-season. Every company regulate their price accordingly. This can results in decrement in sales if the strategy is not considered carefully. DHL use the concept of price discount according to their pricing structures. DHL commonly provides pricing facilities on monthly handling fees, regularity discounts and volume purchase. Different kind of strategy is used for allowance concept such as discussing the price to get reasonable price that fulfil customers requirements. This strategy helps DHL to attract more customers. Currently looking at the market situation, competition is high, not much difference in price between competitors for almost same kind of service. Therefore, to gain more customer attention DHL must develop new reasonable pricing strategies. . Promotional Pricing It is a temporary pricing method or strategies that company price their products or services below the list price to increased sales. (Marketing Decision Making and the Management of Pricing, Rajagopal, pg 9). It is often regarded as a zero sum game. Usually, competitors copy the game but the benefits may not be realised. This can even damage the image of products if the strategies do not work. One has to be aware while choosing between promotional tool and other promo tools to avoid wastage of valuable resources. (Rural Marketing, C.S.G. Krishnamachryulu, pg. 228). DHL also provide seasonal promotions and speciality packaging.(http://www.dhl.co.uk)

Differentiated pricing Pricing for courier and logistic service differ according to place or locations, products or services, and customers. There are lot of other factors that differentiate pricing in DHL. In case of FedEx they charge equal amount for the same weighted parcel and documents but DHL charges are differentiated as per use of services. DHL provides two kinds of products services; Worldwide Document Express Worldwide Parcel Express As per service, weight and destination the prices are charged for the customers. Basically, parcel express is costlier than document express even the documents and parcel are of same weight because parcel need to go through various stages like custom, packaging and more paper works. Place The company must decide to sell its right products and services at the right markets place. DHL customers and markets are everywhere including remote places. In UK, headquarter of DHL is situated in near Heathrow. There are about 1200 service points where they can collect their parcels or courier. These service points are located in main high street areas for easy access. Courier collection service helps customer to book the collection time and date online or automated phone as required. (www.dhl.co.uk). DHL should increase its service points in future for better, safer and quicker service.

 Promotion Promotion is the way of communicating with the different customer about the companys products and services. Promotion rather reflects the benefits of the products not only just feature of the products. Promotion includes advertising, personal selling, sponsorship, publicity and direct selling. In recent years the ways of promoting the products and services have changed because of advanced communication systems and social media. It is just a matter of finger tips to get the required information. DHL should rather use this kind of facilities while promoting its services. It is simple, easy and effective. Moreover, what I suggest is that DHL should start promoting its services in Facebook and Twitter. DHL is providing offer to online user using discount code up to 55%. (www.dhloffers.co.uk). Sponsorship is one of the ways of marketing or promoting its products and services. DHL is the official sponsorship of Manchester United Football Club for logistics and training kit. The other logistic partners of DHL are IMG fashion week events, Formula 1 and Formula E. (www.dhl.co.uk). In coming future more partnerships might make DHL even more effective and efficient. People DHL provides services almost all over the world i.e. 220 countries with workforce around 300,000 are employed around the world to deliver excellent customer service in quick and efficient manner. (www.dhl.co.uk). Employees are the assets of the organization. DHL are regarded as a service industry where interactions of employee with customer are very high. Therefore skilled and talented workforce should be recruited as they represent the whole organization. I suggest that DHL should concentrate on recruitment process and select right person at right place at the right time. DHL offers careers opportunities to the employee with vocational courses like; Level 2 and 3 in Customer Service Level 2 and 3 in Business Administration Level 2 in Operations Management (www.dhl.co.uk) Learning and Skills Council is working with DHL to provide quality education and skills to employees. The main objective of LSC is to build English people more accomplished and ambitious. LSC works within the country to provide better workforce for competitive business sectors like DHL, FedEx, UPS etc. DHLs employee has equal opportunities to develop their skills to world class standard. This can help employee to take new challenges at national and international levels. DHL is an open corporate culture courier and logistic service industry. Open culture in any organization adds value and leads any organization on its way to peak. DHL in the same way attracts lots of highly talented and skilled people at right time at the right place. DHL even provides training programs to their employee to further develop their skills and knowledge. Students and college graduates are involved in the programs like Graduate Programs and MBA Programs where they can show of what they are capable of. DHL graduate programs is available throughout the UK where students at needs a minimum honors degree in business related subjects and have the intense for creating difference in Business. This sort of strategies can create worldwide standard workforce to drive DHL through success. (www.lsc.gov.uk) Physical Evidence Physical evidence includes; The building includes offices and headquarters Packaging Internet web sites Paperwork (Invoices, receipts and notes) Brochures Furnishing Employees uniforms

 Business cards Mailbox etc. Physical evidence is the visual elements available in the industry like listed above. These things together make a complete industry or organization. The systematic way of handling above evidences can make an organization or industry effective and efficient. DHLs each and every tasks includes guidelines to be followed in order to complete it with ease. DHL is further working to make their system and guidelines more effective and efficient.

Process DHL have specific process that every delivered item goes through. DHL implement effective distribution process to improve customer satisfaction. During delivery it even offers online tracking of the items. This can help customer to know about their products whereabouts. Some items reach the destination in same day; some take couple of days and some quite longer. This all depends upon types of service and it follows all the steps of distribution process. DHL is working on their system to make it more effective and efficient. More the effective system, more satisfied customers.

Conclusion In this case, I have presented empiric information of DHL. DHL competitive advantage includes consumers contentment, updated shipping service and green friendly environment. As a top leader in courier and logistic service, DHL is quite expensive than other competitors. DHL must find a way to innovate cheap, effective and efficient services to customers. Moreover, constant process improvement plays vita role in developing strong customer relationship. With the convincing services, the crucial marketing objectives are to shape brand awareness,

positioning and recognition among the targeted customers which are more concerned towards B2B marketing. Finally, the marketing mix strategy is implemented to reflect on 7Ps (product, place, price, promotion, people, physical evidence and process) and illustrating how the marketing objects are achieved.