DHL presentationSYNERGY

DHL Presented to: Mr.Asad Awan

Presented by:

“SYNERGISTS”

Muhammad Umar Farooq (070634-006)M.Khubaib Khan Shirwani (043432-031)Amir Muhammad Aman Ullah (091434-011)

Company Description• DHL was founded in San Francisco in 1960’s by 3

enterpreneurs Adrian Dalsey, Larry Hillblom and Robert Lynn

• Express & logistics industry• World market leader today, 220 countries & 500k

employees• Offers express, ocean freight, air freight, logistics,

chemicals, banks, mail services• Dedicated, customer oriented, commitments &

proactive solutions

• Started its operations in 1982• MD Sarfaraz Siddiqui• Largest air express company in Pakistan with 71-75%

market share (imports/exports)• Services offered in Pakistan;

Fast forwardDomestic express Inbound servicesUniversity express

• Operating at 43 locations, 200 vehicles and over 500 employees.

DHL PAKISTAN

• Vision:“Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share.”

• Mission Statement:“DHL enhances the business of our customers by offering highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence. Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share”

STRATEGIC FOCUS & PLAN

• DHL’s SCA:Launching of In-House customs.RFID in shipmentsVast experience & brand imageStrong HRMTechnology and innovation

• Goals:Non financial goalsFinancial goals

STRATEGIC FOCUS & PLAN

• Import Express• Heavyweight Parcel Express • Junior Jumbo, Jumbo & Mega Box• Fashion First• Wireless application protocol.• DHL’s own private network and DHL world net, helps DHL to

facilitate shipment movement and security more efficiently.• GPRS Courier Scanners • Radio Frequency Warehouse Scanners • Communication Equipment (HF Radio)

Key success Factors

• Industry analysis:Courier industry in PakistanMajor competitorsPostal services.DHL Pakistan & its customers

Situation Analysis

Company Express Logistics Telecomm Aviation Shipping Student service

Imports/Exports

Cargo Events service

DHL

☺ ☺ ☺ ☺ ☺ ☺ ☺TCS

☺ ☺ ☺ ☺ ☺ ☺ ☺OCS

☺ ☺ ☺ ☺ ☺ ☺FedEx

☺ ☺ ☺Leopards

☺ ☺ ☺ ☺ ☺ ☺

Key competitors

Porter Five forces model

Threat of new entrants Threat of new entrants

Bargaining Power of buyers

Bargaining Power of buyersBargaining Power

of suppliers

Bargaining Power of suppliers

Threat of substitute products or services

Threat of substitute products or services

Rivalry Rivalry

Strengths:S1 Strong brand imageS2 GlobalismS3 Technology pioneersS4 InnovatorsS5 Corporate symbiosisS6 R & F (Reach & Frequency)

Weaknesses:W1 Globally not well knownW2 High tariffsW3 Not fully operational in domestic market.

Opportunities:O1 Global ExpansionO2 Joint venturesO3 Expansion of E-commerceO4 Increase the no. of manufactured products

Threats:T1 RestrictionsT2 Economic & political conditionsT3 Slow & stagnant economic growthT4 Uncertain & unfavorable business conditionsT5 Fuel prices may boost

SWOT analysis

IFE

EFE

Strengths S1. S6. S2. . S3. S4 S5.

Weaknesses: W1. W2. W3.

Opportunities: O1. O2. O3. O4.

Match S-W S1 – w1 S2 – w1 S3 - w2

Conversion W-O W1 – O1

W2 - O3

T: T1. T2. T3. T4. T5.

Match S-TS5 – T1

S6 – T2 S2 – T3 S3 – T4 S4- T5

New creative strategy

TOWS analysis

• Political• Economical• Social• Technological

PEST analysis

IFE analysisStrength Weight Rating Weighted score

1. Strong brand name 0.11 3 0.33

2. Globalism 0.14 3 0.42

3. Good reputation 0.09 2 0.18

4. Technology 0.11 3 0.33

5. Kept same strategy for years 0.09 3 0.27

6. E Business 0.08 2 0.16

7. R & F 0.09 2 0.18

8. Innovation 0.10 3 0.30

Weaknesses

1. High prices 0.10 3 0.30

2. Domestically not well known 0.09 2 0.18

Total 1 2.65

Opportunities Weight Rating Weighted score

1. Global expansion 0.12 3 0.36

2. Joint Venture 0.14 3 0.42

3. E- Commerce 0.09 2 0.18

4. Increase no of manufactured products 0.11 3 0.33

5. Largest world sector 0.09 2 0.18

Threats

1.Restrictions 0.10 2 0.20

2. Economic and political conditions 0.09 3 0.27

3. Stagnant economic growth 0.09 3 0.27

4. Fuel prices hike 0.09 2 0.18

5. Tough competitors 0.08 1 0.08

Total 1 2.47

EFE analysis

CPM analysis

CPM  DHL TCS Leopards

Competitive factor Weight Rating Extended Rating Extended Rating Extended

Prices 0.14 2 0.28 3 0.42 3 0.42

Service Quality 0.11 4 0.44 3 0.33 3 0.33

Customer oriented 0.12 3 0.36 3 0.36 2 0.24

Service completeness 0.11 3 0.33 3 0.33 2 0.22

After sales service 0.08 3 0.24 2 0.16 1 0.08

Customization 0.10 3 0.30 3 0.30 2 0.20

Reputation 0.13 3 0.39 4 0.52 3 0.39

Competitive prices 0.10 2 0.20 3 0.30 3 0.30

R & F 0.11 2 0.22 4 0.33 3 0.33

Total 1   2.76   3.05   2.51

IE matrix

2.65

2.47

BCG analysisDHL logistics+ Inbound services

DHL domestic services

Grand strategic matrix analysis

Quality

High R&D

Low

High DHL, TCS

Leopards, FedEx

OCS

R & D

– Hold & Maintain– Market penetration– Product development– Think globally act locally

Strategies

• Focus group• Secondary research• Recommendations

Customer Analysis

• Current market• Current strategy• Target market Foreign Missions: Sensitive global distribution of diplomatic mails Financial Institutions: Time sensitive letters of credit / drafts / travelers cheque’s etc. Multinational companies : Time bound tender documents / audit reports / budget

reports Textile / Leather : Export documentation / approvals/samples Surgical / Sports : Samples / production samples / finished goods / commercial &

non-commercial shipments Health : Handling sensitive blood samples Students: Sending important documents to various institutes of the world.

Market product focus

Marketing mix

1. Product:Proposed strategy (product design strategy)Value marketing strategy

• Packaging:DHL junior jumbo box(up to 10kgs)DHL jumbo box (25kgs)DHL mega box (35kgs)

Marketing mix

2. Price:• Reducing the price.• Penetration pricing• Reduce the price for university student

package by 15%• Reduce the prices for the in-bound and

domestic express services by 10%• The basic objective

Marketing mix

3. Place:• Increase Distribution by opening up the

franchises• Joint ventures (Leopards acquisition)• Intensive distribution is to be adopted so as to

avail maximum channel coverage.

Marketing mix

4. Promotion:• Persuasive Advertising• In media, magazines, outdoor, internet,

mobile marketing and print media

5. People• T & D• Empowerment

Marketing mix

• Customer oriented. • Employee commitment and empowerment.• Service evaluation.• DHL’s strategies• Qualitative research, expansion and service

differentiation• IN SHORT,WHEN IN ROME,DO WHAT ROMANS DO

Conclusion & Recommendations

The End

Thank You

Questions please!