Criteria to Segment market for DB Schenker:

Based on Supply chain Based on Service Based on Transportation

integration: provided: mode:
 4PL  Transportation  Railway
 3PL  Warehousing  Seaway
 2PL  Distribution  Roadways
 Consulting  Airways
The segment targeted: provide service for Seaway and Airways Transportation as a
Third-party Logistics (3PL). These two market segments is a proper match between
DB Schenker strength as it is currently one of the world’s top freight forwarding
providers, its ambition is to “strive to become the world’s leading partner in logistics”
and Vietnam's relatively adequate capacity in terms of infrastructures with 120
seaports, 9 international airports, and 12 domestic airports.
Marketing Seaway Transportation Airway Transportation
mix
Ocean freight transportation and Air freight transportation and value-
Product value-added service that highly added service that highly automated.
automated.
Penetration pricing strategy Value-based pricing
Price
Competitive pricing, Product line pricing strategy
Selective distribution Selective distribution
Place
Public relation, advertising. Advertising and personal selling.
Promotion
Physical Label with logo(red), business cards, brochures, and even websites.
evidence
Transfer experienced staff from the main company, employ more
People Vietnamese people, and trains them necessary skills.

Initially organizing the transport lines to ensure they operate without error,
Process
ensure customers’ satisfaction
Step to implement:
1. To attain these marketing mix decisions, firstly DB Schenker’s marketing
department need to communicate and secure accaptance of strategy with other
departments and individual that responsible for implement marketing mix.
2. For each components of marketing mix:
 For product: Finished by transport and logistics department before
penetrating in Vietnam, optimally in 2 weeks.
Seaway Transportation: determine effective route, analyze the demand to capture
customer, focus on credibility, safe, ability to carry massive volume.
Airway Transortation: select efficient route, focus on speed and responsiveness to
urgent demand.
For both: Decide appropriate plan, portfolio of services, the amount of route provided
in Vietnam based on Vietnamese law system, demand.
 For price: Finished by finance department after forming services portfolio and
before penatrating in Vietnam
Seaway Transportation: Focus on setting low price to increase marrket share.
Airway Transportation: Focus on capturing the demand create by customer’s urgency
and their perishable products.
For both: Design variable prices based on service provided and product size and place;
comprtitors pricing such as Kuehne + Nagel, DHL logistics,... and Vietnam tax..
 For place: Finished by finance and transport and logistics department.
Seaway Transportation: Firstly, focus on Ho Chi Minh city and finish plan before the
penetration. After that, investigating in Hai Phong city and finish after 2 months.
Airway Transportation: Firstly, focus on Ho Chi Minh city and finish plan before the
penetration. After that, investigating in Ha Noi city and finish after 3 months.
For both: Get permission from Vietnam authority, decide on the amount of investment
on warehouses and offices.
 For promotion: Finished by marketing and finance department
Seaway Transportation: focus sponsoring for logistics competitions, should occur
occasionnally, depend on events in Vietnam.
Airway Transportation: focus on personal selling, attract customer with frequent
demand to deliver perishable, seasonal products in large quantity, should occur when
company have adequate resource and credibility.
For both: Using highly automated service video on social media platform for
advertising, advertisement should finish before penetration and monthly update.
 Physical evidence: For both Seaway and Airway transportation: The company's
leaders must prepare the details of the brochure distribution, build a
 Vietnamese website, and decorate a polite the office where the meeting took
place. Done by firm president and manager in Vietnam, optimally in 2 weeks.
 People: For both Seaway and Airway Transportation: The corporation should
send experienced staff to help stabilize the company in the early days and
prepare for training Vietnamese staff. Completed by the manager of the
Vietnam branch, HR department around 2 weeks before entering the market.
 Process: Finished by transport and logistics seniors
For Seaway Transportation: Investing in applying high technology and increase the
quantity and quality of shipping containers to store and transport goods without errors.
For Airway Transportation: Meeting with reputed airline companies to negotiate and
execute contracts so that goods can be transported as quickly and safely as possible.
For both: Customers' feedback should also be collected via questionnaire forms on the
Vietnamese branch's website in order to continuously improve.
3. Finally, DB Schenker should evaluate the result of their marketing mix

compare to competitors and make sure to get feedback from expert. This step
will help the company to gain experience in order to gradually enhance their
performance.