KIRLOSKAR INSTITUTE OF ADVANCED

MANAGEMENT STUDIES PUNE

SERVICE MARKETING

ASSIGNMENT
BY
SWATI DUBEY
UDITI GANGULY
VIPASHA SONI
PRATIKSHA GHEVDE
SAGAR GUPTA
VINEET JOSHI
 INDUSTRY ANALYSIS

DEFINITION OF THE INDUSTRY

Courier service are more specialized delivery service that business and individual turn to
when they need package or a document to reach its destination quickly.
The tem courier service can refer to every form of delivery of transport service ranging from
a small, local operation to an international network servicing millions daily using a fleet of
Trucks, Planes, Trains, Ships
There are different courier service to which we can turn if so needed. In cities courier can
take the form of cars, bikes, motorcycle
TYPERS OF COURIER SERVICE-
1. Onboard service
2. Personal service
3. Same day courier service
4. Overnight courier service
5. Standard courier service
SIZE, CAPACITY AND SCOPE OF INDUSTRY-
Courier Business Market in India 2019
In 2018, the Global Courier Services Market size was 299100 million US$, and it is expected
to reach 464300 million US$ by the end of 2025 with a CAGR of 6.5% during 2019-2025.
Currently, there are approx 2300 courier companies in India. The Indian courier industry size
is estimated at Rs. 14,000 crores. As a premium segment, the courier industry is a small but
significant segment of the logistics industry. There are 7 listed courier companies in India.

It is one of the fastest-growing segments of the industry. The industry is expected to grow at
17% per annum to Rs. 20,000 crores in the next three years.

PLAYERS-
Some of the major player running the courier industry are as follows-
1. DHL
2. FedEx
3. blue dart express
4. Ekart
5. DTDC
6. Dabh logistics
7. VRL Courier service
8. Flyking Courier
9. Delhivery
PORTER’S 5 FORCES MODEL

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PESTLE ANALYSIS
PESTLE
Political-
 Implementation of Tax Reforms in different countries
 Variation in commodity prices due to political reasons, fuel prices variations, oil rates.
 Political inferences and instabilities.
 GST
Environment
 Relationships between variable economic factors and transportation costs
 Fluctuation in commodity prices.
 Economic growth rates, Manufacturing sectors, Industrial Environment.
 Commodity rates in Different geographical regions
Social
• Purchasing
• Discrimination for minority suppliers
• Labour use
• Transportation
• Social issues with drivers
• Warehousing
Technological
• Development of Common and Consistent Database Systems, ERPs
• Adaptation to technological Advancements
• Real Time Data management, Trackers, Dish Antenna.
• Information flow process
Legal
 Price Discrimination
• Compliance of Legal Documentation and Contractual Obligations.
• Dealing with Issues of goods which are restricted in different countries.
• Merger and Acquisition Regulations
Economical
 Transportation via heavy load vehicle affects Air Quality, Create Noise, Global Warming
effects
• CO2 emissions during transportations, warehousing and material handling
• Combined effects of Logistics firms globally.
• Oil spills: Impacts on the ocean lives.
• Introducing Eco-friendly vehicles
• Paper less Systems for mode of transportation

CHALLENGES FACED BY THE INDUSTRY

Here are 8 of the top challenges faced by the industry.

1. Fuel Costs. One of the highest costs contributing to the ‘cutting transportation cost’
concern is fuel prices. Higher fuel prices are likely to increase transportation costs for
US shippers this year by pushing up fuel surcharges. Rising US diesel fuel prices are
escalating surcharges added to freight rates, which is reversing a two-year trend that
cut into the revenue and earnings of truckers as fuel prices plummeted.
2. Business Process Improvement. Notwithstanding the need for new technology,
which we discuss in number eight on this list, it has become an increasing challenge
for the logistics industry to stay on top of new advances in business processes. Taking
advantage of these new opportunities sounds enticing but adoption and onboarding
can be overwhelming.
3. Improved Customer Service. Customers want full transparency into where their
delivery is at all times. These days, the location of a package is as interconnected as
your social network. In fact, as customer expectations have increased, their
willingness to pay for fast shipping has decreased with just about 64 percent of
consumers unwilling to pay anything extra for less than two-day shipping.
4. Economy. With high fuel prices comes a greater credit crisis and rising inflationary
demands that take a greater toll on the US economy. This industry is then pressured
by increasing compliance regulations, declining demand, additional capacity with
additional increases in key cost centres.
5. Driver Shortage & Retention. Hiring and retention remain an issue despite the lower
demand mentioned above.
6. Government Regulations. Carriers face significant compliance regulations imposed
by federal, state and local authorities.
7. Environmental Issues. The anti-idling and other emission reduction regulations
brought about by state and local governments has created concern that the compliance
costs could exceed benefits.
8. Technology Strategy & Implementation. While the industry understands and
supports many of the benefits of these technologies, some questions remain as to how
they will pay for it and who will help implement the improvement.

COMPETITOR ANALYSIS
INDIAN POST

Products / Services:
 Services offered: mail service- Post card, Book post, Parcel post, insurance value
payable post. International (SAL)
 Premium service: Speed post, express parcel, Media post, business post, Greetings
post, logistics post
 Remittance Service: Money order, postal order
 Retail services: Bill mail, Direct post, Retail post, e-payment
 Banking service: Post office saving bank account, 5 yr. post office recurring deposit
scheme, mutual fund, FOREX services
 Stamps are used for the post service because it is the easiest way to identify that
postage has been paid by sender.
Price:
Place: 155015 post offices- Most widely distributed postal network in the world.
Post offices in rural India – 139182 (89-90%)
Promotion:
Internal Marketing: Training to employees, postmen are trained in ecommerce, greetings to
customers by postmen, to sync with latest technology
External Marketing: Alerting customers about status of their parcels (Online / SMS), Booking
orders online, Interactive & informative website,
Interactive marketing: Orientation programmes for customers as well as employees, business
orientation programme for marketing executives.
People:
Strength of people – 460457 around 5 lakhs
Mainly hires local people
Physical evidence:
Post office exterior, Website, Desk & registration
Process of service:
DTDC
 Product
DTDC Lite
DTDC Priority
DTDC Blue
DTDC International
DTDC Express cargo

EXPRESS SERVICES: International Document Express Serice and International

Non-Document express services
CARGO SERVICES: Airport to Airport, Door to Door and Door to Airport

 Place
The network has spread to three thousand and seven hundred locations in India and
that includes both urban and rural areas like Hyderabad, Mumbai, Pune, Kolkata and
Delhi.  It has business arrangements and strategic tie-ups with key players at
international level to provide its services to more than two hundred and forty
locations. This has been possible through a highly-developed network that includes
franchisees, representative offices, joint ventures and subsidiary offices.

Office at the United Kingdom is responsible for the European market, the American
market is handled by offices in Canada and the United States, Asia-Pacific region is
served by Singapore office and Middle-Eastern countries are handled by Dubai office.

 Price
During its early years, it adopted a skimming pricing policy as it had a significant
advantage due to an absence of any significant competitor in this field. DTDC was
able to garner maximum revenues through its excellent services. Later it adopted a
reasonable pricing policy to retain its customer base and to tackle its competitors by
providing clients affordable rates. The company has been successful in penetrating
rural markets through its reasonable pricing policy especially set up for these areas.

 Promotions

It has created several promotional policies that have helped it to reach new boundaries. Good
customer support through efficient handling of parcels have created positive brand awareness
and increased its visibility in the market. During festivals especially Diwali it offers
incentives like sending gifts and parcels to near and dear ones at concession rates.

Brand believes in the power of print media and has used it to create hoardings and advertise
its services in newspapers and through visiting cards.

It has also taken help of celebrities to promote its brand. Former cricket and Indian captain
Sourav Ganguly has been roped in as a brand ambassador for this logistic company.

 People
 13,000 employees, delivers at over 10,000 zip (pin code) areas, handles 10 million
consignments every month.
Employees:
1) Office Manager
2) Field Manager
3) Delivery Staff

 Physical evidence

These are the locations where DTDC has its corporate offices.

 Process
Delivery within a day in normal service and if DTDC Pep delivery then within 12.30
pm. The order is received during the time of 10:00 am to 7:00 pm, it is packaged and
disposed at H.O during 7.30pm- 7.45pm. Then, it is packaged and dispatched during
8.30pm to 9.30pm.

Blue Dart
 Product:
Internal Urgency: The premium service by Blue Dart, these are the parcels that have
to be delivered fast and hence use aviation mode to be delivered. These are charged
higher.
Line service: These are the products that do not require much of time limit, though
need transportation at minimal cost. Hence, these are transferred through on road
services. This is the economy service of Blue Dart.
Dart Apex: These are the parcels, that consist of both mix of land and air delivery,
depending upon which will reach faster. These are medium priced services.
Other services also include smart box service.
The international services, which covers any countries around the world, are now
managed by DHL. These services are named as: Worldwide package Express and
DOX (Document Express)

 Price:
competitive pricing strategy
Based on the location i.e. distance, size of the parcel and handling cost, the prices
charged are similar to ones in the market
Apart from simple pricing based and market, company also charges premium prices,
depending upon criticality of product, short period delivery, or even depending upon
unique locations.
 pricing of Blue Dart services is based on type of products which can be Electronic
goods, that demand high care, hence high packaging cost, that converts into more
charges or Time-sensitive: Products to be delivered at short notices, and of high
value are charged more, for providing more reliable service. Although the pricing of
products is done according to the need of services, although it’s not completely a
variable pricing but rather a standardized pricing policy, where each case is defined
for the amount to be charged.
 Place:
The main headquarter of the Blue Dart company is in Chennai, with major centers at
the 6 major cities of India including Mumbai and Delhi. It covers whole of south-
Asia, with a very compact service in more that 13 thousand locations.

 Promotion:
Being a service provider, the major promotion for Blue Dart, is providing a good
experience to the customers so that they can rely upon the services offered. Apart
from these, the of the promotional activities basically involve around gain visibility
for the brand. With increasing positive word of mouth. Various advertisements in
magazines and newspapers are given, for offering visibility to brand. Online ads
 include YouTube channels and social media. The tagline is ‘Solutions for peace of
mind’

 Physical evidence:
Challans and invoices form the major part of physical evidence for the trust on Blue
Dart by customers, timely delivery by the courier service, is another evidence, that
gives insight about the growing market share of the company

 Process:
The process followed is Star Model. For delivery, it follows a Hub-star model,
where all parcels are delivered at a hub, and then from there carried on to nearby
locations. Thus, Blue Dart is focused in providing a safe and cost effective service,
that is reliable for the customers.
 People:
Blue Dart gives various trainings and incentives to it employees to perform better.
As service is of utmost importance for the company, the rewards and appraisals are
based on the service level achieved by the delivery persons involved. This also
ensure satisfied customers for the company, that affects the sales. The sales team is
also incentivized to provide with leads and opportunities of expansions. These are
given a specific target to be achieved for a given period. For realizing them the
importance of their works, these people are referred to as ‘Soldiers’. The HR
management of company is very effective. It is evident as the company is ranked
amongst the top 15 best places to work in. A dedicated and effective HR team is
also one of the main reason for company’s success.

MARKET SHARE OF SOME OF THE MAJOR PLAYERS

Market Share of Courier Companies

20%
BlueDart
DTDC
45% Indian Postal Services
10% Others

25%
 COMPANY ANALYSIS

PROCESS OF STARTING NEW COURIER COMPANY

SELECT YOUR NICHE

PLAN YOUR INVESTMENTS

WORK ON LEGAL STRUCTURE

DETARMINE COMPETITIVE PRICING

MARKETING PLAN

ABOUT OUR COMPANY

 A Brief Introduction
Welcome to Wrap and Move,
We at Wrap and Move, are trying to make our consumer’s lives easy. Sending a wedding
card to your colleague or a Christmas gift to your grandfather have never been easy, so, we
are here to help you in choosing what you are looking for.
You just have to click the buttons and a gift wrapped courier arrives at the receiver’s
address! We will customize each gift for the customer which includes the types of ribbons to
be used on the gift, the texture of the wrapping paper, the colours, and the type of box which
is to be packed in.
Along with this, a printed card would be attached to it which would be consisted of a
personalized message for the receiver. You will present the idea and we will execute it. The
receiver is exuberant and the entire process was a piece of cake. You just have to visit our
website and order away.
 Business Model

NAME: Wrap And Move

NATURE: Courier Service
LOGO:
TAGLINE: Just How You Like It
MARKET: B2B and B2C
USP: B2C-Packing your parcel with our skills and your ideas to make it more presentable
and professional. Also decorate wedding invitations and deliver it to the guests. Free printed
gift card ( purpose oriened, eg- birthday, weddings,etc) which you can customise with your 4
liner message. B2B- Doing PR packagigng as well as providing courier service for such
package. Free printed gift card which you can customise with your 4 liner message
GEAOGRAPHICAL PRESENCE: Presently in Tier 1 and 2 cities like Bangalore,
Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Agra, Ahemdabad, Pune, Chandigarh, Indore,
Bhubaneshwar, Lucknow and ranchi.
ONLINE PRESENCE: Own website and application. Facebook, Instagram, Twitter,
Linkdin, Youtube.
TARGET CUSTOMER: B2B- Brands and business houses for their PR packaging and
delivery. B2C- upper middle class and high class society. Age bracket- 18 to 40 yrs
TIE UPS: Gift shops like archies gallery and wedding planners for distribution of wedding
invitations.
BUDGET:
Amt. in
Heads Rs.
Initial lease payments and
deposits 17,50,000
Working Capital 45,50,000
Legal formalities 2,50,000
Insurance Charges 2,00,000
Training and development 50,000
Application and website 3,00,000
Furniture, fixtures and
equipment 17,50,000
Security Deposits 1,75,000
Opening supplies 1,00,000
Company vehicle and lease
deposits 14,00,000
GPS ( 5000 * 15) 75,000
Marketing Budget 7,00,000
Miscellaneous and unforeseen
costs 5,25,000
1,18,25,00
Total Investment 0
Ideal percentage importance of following activities in the courier industry given by
Capgemini

https://w
ww.logisticsmgmt.com
According to Capgemini, courier industry should prioratize their practices based upon above
mentioned percentages. Wrap and Move works mainly upon Improved customer service and
business process improvement.

7 P’S OF OUR COMPANY

7 P’s B2B B2C

Product PR Packaging and Customized Packaging

delivery and delivery

Price Premium Pricing Target Pricing(depends

upon customization)

Place Tier 1 and Tier 2 Tier 1 and Tier 2 cities

cities
Promotion Magazines, TV Advertising, Free
newspapers, email printed cards
marketing
Physical Invoices and Invoices and packaging
Evidence packaging
Process Order pickup Order pickup
location office location office
respective office  respective office 
wrapping delivery wrapping delivery

People 140 people 140 people

(management + staff) (management + staff)
PERCEPTUAL MAPPING
GAP ANALYSIS
TYPE OF GAP: The customer gap
Customer expectations are standards or reference points that customers bring into the service
experience, whereas customer perceptions are subjective assessments of actual service
experiences.
Lovelock (1994) introduce another term for the gap between service delivery and what
customers feel they have received because of their failure to accurately judge the service
quality and termed it as Perception gap

In our B2C mapping we can see that the GAP was existing in quadrant 1 and 4. And we plan
to position our brand in Quadrant 1 which is high cost and customized packing. As long as
quadrant 4 is empty, it is a blue ocean of the business to function.
In our B2B mapping we can see that the GAP was existing in quadrant 1 and quadrant 3. We
plan to position our brand in quadrant 1 which is customized packaging and logistics
services.