“A marketing mix

study on DHL
express”

JAIPURIA INSTITUTE OF MANAGEMENT

LUCKNOW

Prepared For:
Prof. Shalini Nath Tripathi
Faculty, JIM-Lucknow

Prepared by:

Rakesh Kumar Pandey (CFT_07-120)

(Leader)

Akash Chug (CFT_08-006 )

Anand Kumar (CFT_08-012 )

Faraaz Amzad (CFT_08-045)

Gurtej Singh (CFT_08-052)

PGDM 2008-10

ACKNOWLEDGEMENT

No academic endeavor can be single handedly accomplished. This

work is no exception.
At the outset, we would like to express our gratitude to Prof. S.N
Tripathi for initiating us into this project. We sincerely acknowledge our
thanks for her valuable suggestions and time to time consultation.

Last, but not least, we would like to thank all the staff and faculty member
of Jaipuria Institute of Management, Lucknow for their kind cooperation
and assistance during our project work.
-
OBJECTIVE :

DHL has the world’s largest express and logistics Network. Over the past
decades it had turned delivering goods into a finely oiled process. . DHL
has developed a reputation for consistently developing innovative solutions
that streamline operations and improve control. Their in-house teams have
contributed to the solutions design of some of the world's leading brands
and enabled to win key contacts. DHL is service based company and
services are critical for competitive advantage in companies from all
sectors. Superior customer service is one of the key drivers of competitive
advantage. The purpose of this project is

• To identify the 7P’s of services of DHL courier.

• Product
• Price
• Place
• Promotion
• Process
• People
• Physical evidence

• What are the core and supplementary services of courier?

• To find out service failure and service recovery processes of

DHL courier.

METHODOLOGY:

To fulfill our objectives we use

• Secondary literature study (Different articles from
newspaper and related website articles).
• Case studies and their analysis.
 LITERATURE REVIEW

CASE 1
Title - Worldwide delivery for DHL, Nassau Girl Scouts.
Source -- Long Island Business News (7/1993 to 5/2009)
Date -- 2008
Subject -- PARTNERSHIP,DHL International GmbH,GIRL Scouts

A full-service company, Corporate Couriers handles complete delivery and

logistics solutions, offering on-demand services, scheduled services,
freight distribution and secure warehousing for a variety of industries. The
company picks up and deliveries most anything, from mundane financial
institution documents to biohazardous materials, from machine parts to
blood and organ transplants

The courier company has stayed ahead of the pack in a $59 billion
nationwide industry by meeting clients’ needs and by modernizing
operations with up-to-the-minute technology

Case 2

Title -- Courier and Express Services

Published by: Key Note Publications Ltd

Published: May. 1, 2000 - 70 Pages

It is estimated that the total value of courier and express services in 1999
was £4.21bn, compared with an estimated £2.92bn in 1995. During this
period, the importance of express services for logistical purposes grew
rapidly. The courier and express industry includes Parcelforce, the state-
owned subsidiary of the Post Office, which competes commercially in the
open market with the numerous independents in the industry . All own
large fleets of vehicles but the revenues from transport are only part of
their total revenues, which include fees for many other services rendered,
such as management of the post room, inventory control, re-ordering stock,
maintaining records, warehousing, packing and shipping, low-tech
assembly, etc.
Case 3

Title -- The street takes to air.

By: DeNitto, Emily, Crain's New York Business, 8756789X,

02/22/99, Vol. 15, Issue 8

Financial institutions are turning more often to DHL Worldwide Express'

helicopter service from John F. Kennedy International Airport. Banks and
others can miss the chance to make tens of thousands of dollars every time
a courier delivering financial materials has to sit in New York gridlock.
The chopper gets checks and money orders to the Wall Street heliport in
about nine minutes, instead of the average 90 minutes by van. Over the
past year, DHL has increased its flights to Wall Street by 50%, to 12 daily.
A dozen financial firms use the service, which now carries more than
70,000 packages per month.

Case 4-

Title -Courier flights inexpensive way to travel the world.

Source:Westchester County Business Journal
Date: 1996
Subjects: AIR travel -- Economic aspects,EXPRESS service --
United States, AIR
travel.

Solution
Reports on a survey conducted by the International Association of Air
Travel Couriers (IAATC) on opportunities for travelers willing to fly as air
couriers in exchange for inexpensive air tickets. Increase in air courier
routes in 1995; Courier companies' addition of courier flights . Courier
flight fares rise and fall with the seasons and the demand. If airline prices
are up in general, or you are trying to get to a popular destination, you
could pay more. Sometimes, the price is almost as high as a regular flight
or a consolidator fare, so it pays to check.
Depending upon the route and the time of year, you may be limited to one
carry-on, as your baggage allowance is used for the shipment. In some
cases–low-volume flights–you will be allowed your checked baggage and
the excess will be used for the shipment.
Case 5

Title: Courier service to enter Spokane market in 2000

Authors: Crompton, Kim
Source: Journal of Business (10756124)
Date: 2003
Subjects: DELIVERY Express (Company),EXPRESS service,
SPOKANE (Wash.),...

Reports on the opening of courier service Delivery Express Inc. in

Spokane, Washington. Establishment of the branch office; Size of the
workforce. Actually this research talked about the demand of courier in
last four years in United state of America.
History
DHL are the first letters of the last names of the three company founders,
Adrian Dalsey, Larry Hillblom and Robert Lynn.

In 1969, just months after the world had marveled at Neil Armstrong's first
steps on the moon, the three partners took another small step that would
have a profound impact on the way the world does business.

The founders began to personally ship papers by airplane from San

Francisco to Honolulu, beginning customs clearance of the ship's cargo
before the actual arrival of the ship and dramatically reducing waiting time
in the harbour. Customers stood to save a fortune.

With this concept, a new industry was born: international air express, the
rapid delivery of documents and shipments by airplane.

The DHL Network continued to grow at an incredible pace. The company

expanded westward from Hawaii into the Far East and Pacific Rim, then
the Middle East, Africa and Europe. By 1988, DHL was already present in
170 countries and had 16,000 employees.

At the beginning of 2002, Deutsche Post World Net became the major
shareholder in DHL. By the end of 2002, DHL was 100% owned by
Deutsche Post World Net.In 2003, Deutsche Post World Net
consolidated all of its express and logistics activities into one single
brand, DHL The company

DHL is the global market leader in international express, overland

transport and air freight. The company’s services range from express
document shipping to supply chain management. DHL’s international
network extends to over 220 countries, with around 285,000 employees.
In the company’s own words, “We move things – by road, rail, boat or air
– We move things.”

The company is part of the Deutsche Post World Net (DPWN) Group.
While DPWN has a global approach to sustainable development,
individual companies and countries within the Group are encouraged to
develop approaches which meet the needs of their own regions, whilst still
supporting the overall company goal. The Group recognises its business
has an impact on the environment – operating vans, trucks, aircraft and
boats every day to deliver customers’ parcels. However it understands that
it cannot simply stop doing business but, at the same time, it cannot ignore
the environment. Instead the company seeks to recognise the impacts it
creates and develop a programme to address them.

Global facts and figures

Number of Employees: around 285,000

Number of Offices: around 6,500
Number of Hubs, Warehouses & Terminals: more than 450
Number of Gateways: 240
Number of Aircraft*: 420
Number of Vehicles: 76,200
Number of Countries & Territories: more than 220
Shipments per Year: more than 1.5 billion
Destinations Covered: 120,000

International Conference on
Partnerships for e -Business

Characteristics, Trends & F

Interaction with Standards W

Harry Strover
Geneva, September 18
-19th 200
D H L O v e rv ie

D H ’sL p a r e n t c o
g r o u p . W it h r e
t h a 2n 2 0 c o u n

 L a rg e
 Seven P’s of DHL Express-
First- P

Product-

DHL is the leader in courier, express and parcel delivery services - both
local and global. Whether it's documents or parcels, DHL has the service
you are looking for.

1- DHL Express Internationally.

DHL makes international shipping convenient with a variety of services
and options to suit your needs.

2- DHL Same Day Service.

When you're racing against time, choose DHL Same Day, the fastest
delivery service available in today's air express industry

3-Logistics Services
We offer a complete range of logistics and outsourcing solutions to
meet your warehousing and distribution challenges.

Optional Services
DHL Express products are complemented by a range of payable Optional
Services that provide flexibility to address specific customer needs.

Dangerous Goods
Let DHL assist your business when your shipment contains hazardous
materials that require special handling. To find out more, call the DHL
Dangerous Goods Hotline at 1-866-817-3794.

Shipment Value Protection

When your shipment needs extra coverage, DHL can help. Shipment Value
Protection covers the actual cash value of the shipment or repair costs,
whichever is less, in the event of physical loss or damage, subject to the
exclusions listed in the terms and conditions or on the back of the DHL
waybill. Arrange for this service when you contact your local
representative for a pickup. Or just check the relevant box and enter the
declared value in your shipping system or on your waybill.

Neutral Delivery
Sending a shipment but need to keep the value confidential? Use DHL
Neutral Delivery. Shippers can use this service to send non-document
shipments directly to international customers and bill the duties and taxes
to importers of record in the same destination.

DHL Express's global headquarters are located at the site of Deutsche Post
headquarters in Bonn. Headquarters for the Americas are located in
Plantation, Florida, while its Asia-Pacific and EEMEA headquarters are
located respectively in Singapore & Dubai The European HUB is now
located in Leipzig. Most of DHL Express's business is incorporated as
DHL International GmbH. Major Competitors include FedEx, UPS, TNT,
and national post carriers such as United States Postal Service and Royal
Mail. However, DHL has a minor partnership with the USPS, which
allows DHL to deliver small packages to the recipient through the USPS
network. It also is the sole provider for transferring USPS mail in and out
of Iraq and Afghanistan. DHL offers worldwide services, including
deliveries to countries such as Iraq, Afghanistan and Burma. As it is
German-owned, DHL is not affected by U.S. embargoes or sanctions and
will ship to Cuba [16] and North Korea. [17] As a foreign company, DHL is
not allowed to make domestic flights between U.S. airports, so these
freight flights are contracted out.

DHL may require some international recipients to pay any customs charges
into DHL's foreign bank account and proof of payment provided, before
package delivery can be completed. Such cases may involve a physical
journey to the DHL bank and/or the local DHL office, although the
recipient can opt to pay for the charges of the delivery at their premises.

Value Added Services

• Co packing
• Product assembly
• Other value added services

Second-P

Price

Companies usually do not set a single price, but rather a pricing structure
that reflects variations in geographical demand and costs, market—
segment requirements, purchase timing, order levels, delivery frequency,
guaranties, service contracts, and other factor. As a result of discounts,
allowances, and promotional support, a company rarely realized the same
profit from each unit of a product that it sells. In this Analysis, we want to
know how far DHL implemented the concept of the price adaptations.

1. Geographical pricing (Cash, Countertrade, Barter)

In geographical pricing the company decides how to price its product to
different customers in different customers in different locations and
countries. As DHL expanded service into new countries, it developed
many different pricing strategies and structure. DHL country managers had
almost total control of pricing, they typically set prices based on four
factors: what the market could bear, price charged by competition (which
was often initially the national post office), DHL initial entry pricing in
other countries, and
DHL’s then current pricing around the world. From this strategies, we
know that the pricing policy is different in each country, which appropriate
with the condition and situation of the country.

2. Price discount and allowances

Most companies will adjust their list price and give discounts and
allowance for early payments, volume purchases, and off-season buying.
Companies must do this carefully or find that their profits are much less
than planned. DHL do this concept with pricing structures such as monthly
handling fee, frequency discount, and loaded half-kilo. For the allowance
concept, DHL also have the other strategy, like negotiations price that
make possible to get flexibility price. The strategy which customize the
table to the customers
needs, and this strategy really help the negotiations.

3. Promotional Pricing
Promotional pricing strategies are often a zero-sum game . if they work,
competitors copy them and they lose their effectiveness. If they do not
work. They waste the money that Could have been put into other
marketing tools. In this case, DHL did not make a promotional pricing, but
to hold out their customer they make a strategy pricing structures.

4. Differentiated pricing
Company often adjust their basic price to accommodate differences in
customers, product, locations, and so on. Although FedEx charged the
same for parcel and documents, DHL have a differentiation on product
basic price, DHL base price were calculated according to product (service,
DHL have 2 kind of product services there are worldwide document
express and worldwide parcel express), weight, origin, and destination.
Prices were often higher for parcel than for documents of equivalent
weight due to extra costs for custom clearance, handling, packaging, and
additional paperwork.

Third - P

Place

DHL services are available almost everywhere at any time. DHL is

completely service oriented therefore it does not have its own material
movement but that of the customers both the sender, the receiver and also
the intermediateries. That means it only involves physical distribution and
procurement. Procurement also includes the material needed for packaging
such as paper, moulded trays and boxes, wooden crates, standard
containers wraps, plastic inlays etc. The materials or the goods collected
from the senders (including papers, documents, physical goods like
clothing, household good, chemicals, exotic animals etc) are weighed,
checked for condition, and depending upon its various characteristics it is
packed. The goods are then dispatched to their destinations. There is no
value addition to the material itself but it is done to the service which is
provided ( eg if there has to be a certain package delivered from India to
UK the normal services would take about 2 days whereas as a super fast
delivery would be done in about 9 hours)

DHL’s whole business is dependent on the vital point of timely delivery.

Based on the distance to the final receiver, the accessibility, the
documentations and procedures that need to be handled etc they have fine
tuned the process of delivery. They can accurately gauge how much time it
will take for the goods to reach its end destination

Services include:

 Roll in Management: de-installation of finished goods at the

customer's site
 Returns Management: receiving, sorting, verifying and managing
returned products
 Express Delivery: Exchange of Dead On Arrival products
Key services include:

 International freight forwarding

 Domestic and regional inbound deliveries
 Inventory planning, forecasting, procurement and analysis
 Distribution centre operations
 Outbound delivery

DHL’s distribution to store solutions are focused on helping retailers

create efficient and flexible supply chains to deliver product to retail
outlets at high levels of service.

These solutions are built from several core services including reverse
logistics:

 logistics network strategy

 warehouse design and simulation
 transport modelling.

DHL uses all the modes of transportations that is

• airways
• roadways
• waterways
• rail freight

DHL has its own fleet of airplanes and motor vans. Depending upon the
final destination where the goods have to finally reach and the type of
package the customer has paid for, DHL uses the individual modes of
transport or a combination of either of these or all. Once again the
geographical location and how fast the goods have to be delivered are the
factors for the final selection of modes of transportation .

The concept of economies of scale and economies of distance are both

taken into consideration in case of larger consignments where DHL
provides an appropriate logistical solution which helps in reducing the
overall cost for the customers.
Fourth - P

Promotion
DHL had a single sales force which sold both document and parcel
services. Sales reps were organized geographically and were evaluated
primarily on monthly sales. Typically sales reps had separate monthly sales
objectives for international, domestic and total sales and received a bonus
whenever they exceeded any one of the tree. Sales managers were
evaluated against
profit as well as revenue objectives. DHL spent roughly 4% of worldwide
sales on advertising. In 1990, DHL launched a new advertising campaign
in US with slogan “Faster to more of the world”.

Fifth –P

People –
DHL's international network links more than 220 countries and territories
worldwide. Some 300,000 employees are dedicated to providing fast and
reliable services that exceed customers' expectations.
DHL is the global market leader of the international express and logistics
industry, specialising in providing innovative and customised solutions
from a single source.

Customer service centres

DHL Express operates two customer service and sales centres in East
Midlands Airport and Salford, Manchester with a population of around 700
employees. DHL wishes to offer the following vocational opportunities:

• Customer service level 2 and 3

• Business administration level 2 and 3
• Contact centre operations level 2

DHL Express also wishes to offer a skills for life programme for those
employees who would benefit from development in basic English and
Maths.

Learning and Skills Council

The LSC exists to make England better skilled and more competitive. We
are responsible for ensuring the availability of high-quality education and
training for everyone. We have a single goal: to improve the skills of
England's young people and adults to world class standards.

Our vision is that young people and adults in England have knowledge and
skills matching the best in the world and are part of a truly competitive
workforce. We work nationally, regionally and locally to deliver this
ambition on behalf of learners and employers.

DHL people are passionate about what they do and passionate about the
service they provide to their customers. Each individual contributes to
DHL overall success and encourage personal responsibility, commitment
and cooperation - for the benefit of company and customers.

DHL employees have the opportunity to continually expand their skills to

the support provided by a large worldwide company. DHL people develop,
change and take on new challenges on a national or an international basis.

DHL corporate culture creates added value and leads DHL on the way to
become stronger than DHL competitors. This is an obligation that DHL
have to our shareholders. Our corporate culture unites the excellence of
individual subsidiaries and their unique company cultures to produce a
shared strength.

An active, open corporate culture makes us an attractive employer for

highly talented people and strengthens our position as a responsible global
corporate citizen in this world.

Training programme
. Today's innovative ideas are the solutions for tomorrow's challenges.
That's why the fostering of creative, hard-working talented people
represents an investment in the future at DHL and Deutsche Post DHL.
Through an extensive package of programs, DHL offer students and
college graduates around the world the chance to show just what they can
do: They gain valuable experience in the Group, work independently on
projects and stay in touch with the company afterward

GRADUATE PROGRAMME..
The DHL Logistics Graduate Programme exposes graduates to the Supply
Chain industry through various operational placements at many of
locations throughout the UK. You'll need to have a minimum 2:2 honours
degree in a business related subject, be able to move anywhere within the
UK and have the drive and determination to make a difference to DHL
business.
 GROW
The career-starting program "Grow" - Graduate Opportunities Worldwide -
offers a variety of opportunities for ambitious and motivated (technical)
college graduates.

MBA PROGRAMME
Deutsche Post DHL cultivates the international elite of the future. In this
program, MBA students from Europe, the United States and Asia spend
three to six months at the company working on projects. Under the
supervision of a department head, they play an active part in both the
operative business and demanding strategic projects..

Sixth –P

Physical evidence

• Uniform

The DHL uniform is an important part of corporate identity and gives a

positive professional image. If you’re required to wear a uniform we’d ask
you to wear it all the time you are at work.

Adjustments to skirts and trouser lengths are permitted, however they may
only be altered to a length that’s suitable for working in a business
environment and acceptable to your manager. You’re responsible for
keeping your uniform clean and in good repair. Uniforms are generally not
replaced earlier than 18 months after issue. Footwear must be appropriate
for your job and must be approved by your manager ~ generally black or
grey in colour. If in doubt ask your manager for guidelines. Uniform of
DHL express gives a physical evidence to Service provider to better know
customer in his mind whenever they are required to service.

• Packaging
• Receipt
• Sound and Tone of voice
• Computer
• Appearance of the Employee
• Documents
• Forms
 Customers
F
R
Calls
O
N
--------------- Line of Interact
T Contact Person
S (Visible action)
T
A
G
Greet the
E customer

Line of Visibility
Contact Person
(Invisible action)
Receiving parcel
from the regional
Packing
B
A
hub the parcel
C
K

S
Customers
T
A
Call centre
G
E --------------- Line of Internal
Physical Interaction

Dispatching the
Maintaining
 Receiving of parcel
by the selected mode
of transport to regional
hub at the point of
destination

Seventh-P

Process -

DHL Process goes according to a six-step process:

 Initiation: The formal start of the project

 Design: The formal agreement on how to approach the project and

Physical Eviden
its deliverables
 Planning: Following agreement, a detailed plan is created
 Execution: After detailed planning and preparation, the project goes
'live'
 Closing: Gradually phase out and prepare for handover of the
deliverables
 Handover: The formal end of the project

Confirmation rece
 Inventory Flow

Suppliers Physical Manufacturing Procurement

distribution support

Customers
Information Flow

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parcels up to 31.5 kg and also offers collection, sorting and franking for
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Use “GLOBAL COMMUNICATION” to communicate with direct

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marketing campaigns of any size. Also offer a flexible range of basic and
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The easy way to improve your circulation. Worldwide.

Use GLOBALMAIL PUBLICATION to communicate with readers

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dispatch and customs clearance. GLOBALMAIL PUBLICATION offers a
choice of delivery speeds, full feedback on addresses of undeliverable
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The easy way to stay in touch with business partners worldwide.

Regular communication with customers around the world is critical to your

business - from product information to promotional mail shots, invoices to
annual reports. The result can be mountains of mail that block your
mailroom and drain resources and budgets.

Service recovery and failure by DHL express-

Collection Staff
DHL employees are a highly trained and cognizant staff. Management
team has over 100 years combined experience in the collection industry.
Employ the most highly skilled and well trained collection team available.
DHL provides ongoing training sessions with employees bi-weekly. Thier
customer service representatives are contacting your customers 8:00am to
8:00pm Monday through Thursday, Friday until 6:00pm, and Saturday
8:00am until 12:00pm. Their success rate is higher because we are calling
people during hours when most other collection agencies are closed. All of
our collection staff has attained or is working toward their Professional
Collection Specialist designation through the American Collectors
Association.

Acknowledgements
Every customer that you assign to DHL will be acknowledged in writing.
The acknowledgment provides you the name, your account number, our
account number, and the dollar amount assigned. Acknowledgements
insure proper account reconciliation between your office and DHL.

Collection Methods
All correspondence and collection procedures are consistent with the
guidelines of the Fair Debt Collection Practices Act and their governing
body the Federal Trade Commission. Their objective is to collect your
money and at the same time treat your customer with respect and end the
conversation with the customers' dignity intact.

Legal Staff
In the event your account needs the attention of an attorney, DHL retains
reputable legal counsel with over 22 years of collection law experience.
He and his highly qualified legal staff handle all legal affairs. All
normally incurred legal costs are advanced by DHL.

Conclusion
DHL has developed a reputation for consistently developing innovative
solutions that streamline operations and improve control. Their in-house
teams have contributed to the solutions design of some of the world's
leading brands and enabled to win key contacts. DHL is service based
company and services are critical for competitive advantage in companies
from all sectors. Superior customer service is one of the key drivers of
competitive advantage. Regular communication with customers around
the world is critical to your business - from product information to
promotional mail shots, invoices to annual reports. The result can be
mountains of mail that block your mailroom and drain resources and
budgets.

DHL’s profits would be maximized if each country managers simply

charged each customer. DHL have good strategies for the pricing policies.
Although have a highest price, DHL can hold out the market share by
improve the quality of their service, so DHL should continue this strategy.
But, DHL still have an attention with the competitor do and to the
customer needs. DHL Express understands that addressing its corporate
responsibility, environmental and community impacts is simply part of
how it does business. In particular, the risks of not addressing the growing
priority of the carbon agenda, was identified by DHL as a fundamental risk
to its ongoing success. The company recognized that the growing
customer awareness and initiatives undertaken by competitors had the
potential to leave DHL behind, particularly given the nature and scale of its
business.