Marketing Plan of DHL Express - Essay Example

Marketing Plan DHL Express Marketing Plan Introduction DHL Express is the leading world logistics multinational company with headquarters in Bonn, Germany. Since its establishment in London, it has emerged as the leading global express services, freight transport and supply chain solutions provider in the United Kingdom. It offers a dynamic business products ranging from domestic and international mailing services to road, rail, air and ocean freight services to its local and international clients (Mintzberg & Quinn 2007). It also offers chain supplies to the private and public sector. Some of its main public clients include the Ministry of Defense, Ministry of Health, Ministry of Justice and a number of local authorities in the country. As a result of offering exceptional services to its wide range of clients, DDHL Express still face lots of challenges that need to be resolved through a proper decision-making process (Jones 2006). This paper carries out a critical and in-depth analysis of these challenges and seeks to recommend the best marketing strategies that can be used to resolve them (Tracy 2000). Challenges Facing DHL Express Although it is a well-established company, DHL Express still faces a lot of challenges. The dynamics of the corporate world has exposed it to the following challenges: High Level of Competition in the Market One of the major challenges faced by this company is a high level of competition in the market. The lucrative nature of the logistics business has enabled it to attract a very large number of investors. Thus, there are so many firms offering freight, express and mailing services which it specializes in. This has posed a threat to its operations because they have to compete for the available number of clients (Ronald & Samir 2009). Obviously, the mushrooming of companies offering substitute and complementary services provided by this company implies that teach of them needs to be smart so as to enjoy a competitive advantage over one another and so as to emerge as the best alternative (Erica 2012). Competition is a reality in the industry because it is not only limited to this kind of business. Everyone has to look for appropriate strategies to deal with it. The other challenge faced by DHL Express is high level of congestion in the roads. Given that most of its logistical operations are conducted through the road, the company has had to deal with a lot of problems. There have been many cases of accidents which have resulted into the deaths of the company drivers and other road users including passengers, cyclists and pedestrians (Michael & Kaye 2007). As a freight company, DHL Express has been using mainly heavy, pollutant and noisy trailers. These have really damaged the reputation of the company and put in into problems with the government and the general public which has perceived these as irresponsible acts. The loss of reputation has negatively impacted on the rate of the rate of development of the company (Paauwe & & Boon 2009). Lastly, the high number of logistical companies has led to an increase in the number of fraudulent activities in the market. several people have been using the name of the company in a fraudulent manner. such instances have seriously affected the image of the company since many victims believe that they have been executed by the company and its operatives (Kiechel 2010). As a result, many potential clients have shied away from associating with the company since they fear that they might also become victims of similar immoral acts. Marketing Strategies that can be used to Resolve the Challenges The above discussion demonstrates that DHL Express is currently facing lots of challenges in its day to day operations. Its management therefore needs make important decisions on how to help the situation. This can be done by implementing the most appropriate and well-thought marketing strategies as discussed herein: To begin with, the paper recommends that company should make a good use of its marketing strategies. It should come up with well-thought ad relevant decisions to appeal to its clients. The best way to achieve this is to apply the principles of marketing mix theory, which advocates for the use of product, pricing, promotion and place strategies. By setting reasonably fair prices, the company can manage to make some profit as it also attracts the clients who might feel exploited by the rival firms offering their services at some higher rates. Price is a very important factor being considered by customers when making their purchases. Therefore, when they feel that the prices charged by a company are fair to them, they will consider it as the best alternative in the market. Hence, the company will manage to retain its existing clients as well as constantly attract others. The other marketing strategy to apply while dealing with the situation is provision of exceptionally high quality services. As an established organization, DHL Express has a potential of providing high quality services to its clients. Apart from having resources, it has highly trained and experienced personnel to serve its diverse class of clients. By giving them all the necessary motivations, the employees’ productivity will be enhanced. As a result, they will deliver their best services to the company’s clients (Collings & Wood 2011). In case this is encouraged, the company will be in a better position of satisfying its clients without unnecessary complaints from them. This is necessary for progress since most clients do not necessary consider prices, but prefers to get a quality service instead. Indeed, this is a marketing strategy that can help the company to deal with the stiff competition it faces in the market. The other important marketing strategy to apply while addressing the menace of competition in the market is product promotion. As a multinational that serves a diverse class of clients from across the globe, DHL Express should take advantage of the media to advertize its products. In order to access both the local and international audiences, the company should use a wide range of media platforms that ranges from print, broadcast to online media. Through such an initiative, it will get an opportunity to create awareness on its products and explain to its target audience how they can be used, their uniqueness and the benefits of using them instead of choosing them as the best alternative in the market. By doing this, the company will manage to appeal to its clients, consolidate them together as well as attract more others to join the large pool of its existing clients. Once product promotion is properly executed, the company will not find it challenging to increase its client base and coverage. In fact, it is also one of the best strategies to use while dealing with the cases of fraudulent activities that have become rampant in the logistics sector. It can help it to create awareness to the public and clean its reputation that might be injured by any competitor that might link it to unwarranted claims of fraud. Online media, for instance, can cut across country’s borders and reach all audiences from across the globe. On the other hand, the company, in its efforts to market its services, should dedicate time and resources to ensure even distribution of its services. Given the significant role it plays, distribution should not be taken for granted. In fact, the company should ensure that all its clients are accessed wherever they are without necessarily having to walk for long distances looking for them (Ronald & Samir 2009). To achieve this, the company should distribute its offices and chain outlets to different parts of the country. When this is properly done, the company will find it much easier to supply its services to all the clients without any discrimination. It can benefit from such initiatives by winning and restoring the confidence of its clients all the other stakeholders. Once this is accomplished, the company will not only increase the number of clients, but also create a good reputation in eyes of the general public (Hillier 2007). Apart from marketing mix, the company should apply the principles of Strength, Weaknesses, Opportunities and Threats (SWOT) and Political, Economical, Socio-cultural and Technological (PEST) analyses to carry out an assessment so as to understand its internal and external environment. By having a thorough knowledge of all the factors affecting its operations, the company’s top management might be put in a better position of making well-informed decisions regarding the company (Hill & Westbrook 2000). On its part, SWOT analysis is necessary for helping the management to deeply understand about its internal environment-strengths, weaknesses, opportunities and strengths. This can be a major step in the development of the company because it can grant the management an opportunity to know the extent to which its short and long-term objectives have been successfully achieved (Chermack & Bernadette 2007). Besides, SWOT analysis is important in identifying the opportunities that the company should try to take advantage of and exploit. Moreover, it is the best way of knowing all the weak areas in which the company should strive to make improvements as it works hard to fulfill its objectives. Meanwhile, PEST analysis can be instrumental in understanding the external environment of the company-political, economical, socio-cultural and technological factors that influence the day to day activities of the company (Argenti 2007). All these play important roles because without them, nothing much can be achieved. Since it operates in a free, but competitive, dynamic and regulated market, it can be a wise idea for the management to be privy with the political climate; taxation policies; inflation and interests rates; income and population distributions; population growth rate ; cultural and religious factors; and technological innovations. The company should, at all times, be privy with the changing dynamics in the market lest it be obsolete. Actually, the carrying out of SWOT and PEST analyses can be a bright idea in this company. A part from creating awareness on the internal and external factors affecting the company, it can provide the management with a platform of making well-informed, creative and responsive decisions regarding the next step to take. For example, by knowing about the technological transformations in the logistics sector, it can start automating its services and introducing new innovations such as use of aerodynamic tear-drop trailers, vehicle tele-dynamics, mobile apps and electric and hybrid dual fleet vehicles (Donald 2012). These can enable the company to respond to and cope up with the changing trends and appeal to its clients who will then consider its services to be safer, cleaner, quieter and more efficient as compared to its rivals (McWilliams & Siegel 2001). 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