Group (1):

Ahmed Ashraf \ Fouad Tariq \ Mohamed Abdelhalim \ Mohamed Abo Al Magd\ Mohamed Ghaleb \ Mostafa Elshazly

Subject: Dynamics of Marketing & Research

Group marketing plan
Marketing plan for “DHL”.
There are 9 steps for developing Marketing Plan:
1. Look at your industry structure.
2. Conduct market research.
3. Define your market and customer profiles.
4. Conduct a SWOT analysis.
5. Study the competition.
6. Set your goals and objectives.
7. Outline your marketing strategies.
8. Set your marketing budget.
9. Keep your marketing plan up to date.

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1. Look at your industry structure.

 The global logistics market size was accounted at USD 7.98 trillion in 2022
 It is expected to reach around USD 18.23 trillion by 2030
The global logistics market is poised to grow at a CAGR of 10.7% from 2023 to 2030.
 Growth in global logistics is fueled by three fundamental trends:
increasing consumption, rising e-commerce and ongoing reconfiguration of the supply chain to move
goods more quickly and efficiently.
factors affecting global logistics are:
External risks, transport capabilities, logistics infrastructure, information integration, local agents'
logistics capabilities to national law and policy.
 Also, growing demand for below applications around the world has had a direct impact on the growth
of the Freight & Logistics:
o Manufacturing and Automotive
o Oil and Gas, Mining, and Quarrying
o Agriculture, Fishing, and Forestry
o Construction
o Distributive Trade (Wholesale and Retail Segments - FMCG included)
o Other End Users
 Logistics industry have strong presence both domestically and overseas.
Domestic logistics is the allocation of goods within a country, while international logistics is the
distribution of goods beyond the country boundaries. Managing logistics domestically is very diverse
from managing logistics internationally because of the much narrower geographic scope in a domestic
operation.
 Logistic companies make profits by providing transportation, warehousing, and logistics services to
businesses and individuals. They charge customers for these services based on factors such as the
distance traveled, weight or volume of the goods being transported, and the level of handling and
storage required. Logistic companies may also earn revenue from additional services such as customs
clearance, insurance, and packaging. Some companies may also earn income from owning or leasing
their own transportation and warehouse assets.
Most profit in Logistics business is the 3PL, or third-party logistics, involves a company providing
logistics solutions for another company. It can range from handling supply chain operations to providing
warehousing and transportation services. 3PL services are becoming more popular amongst
businesses, as they offer greater efficiency, cost savings, and scalability.
Whether it’s helping a company streamline their supply chain operations or providing warehousing
solutions, 3PL can be a highly profitable. You just need to ensure that you have the right experience and
skill set to meet the needs of your customers.
Additionally, Heavy hauls almost always pay higher than standard loads because of the added work
involved. If you have capacity to take on larger loads, consider taking them every now and then to
boost revenue. You should also explore other higher paying loads, such as hazmat freight or oversized
loads.
 Leading businesses in the industry:
o United Parcel Service Inc. Transport and Logistics. ...
o DHL Group. ...
o FedEx Corp. ...
o A.P. Moller - Maersk AS. ...
o Deutsche Bahn AG. ...
o Kuehne + Nagel International AG. ...
o SF Holdings Co Ltd. ...
o DSV AS.
 Market size that leading businesses operate in:
Cumulatively, the top 10 logistics companies generated revenue of $538,842 million, with the highest
revenue generated by United Parcel Service Inc ($97,287 million), followed by Deutsche Post AG
($96,662 million) and FedEx Corp ($83,959 million), while C.H. Robinson Worldwide Inc ($23,102
million) stood the lowest.
 In terms of regional distribution, the regions that are leading the Freight & Logistics Market are:
o North America (United States, Canada and Mexico)
o Europe (Germany, UK, France, Italy, Russia and Turkey etc.)
o Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
o South America (Brazil, Argentina, Columbia etc.)
o Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

2. Conduct market research.

 Target customers:
DHL customers are companies from different industries, government organizations, and individuals who
are searching for logistics solutions.
 Customers interests:
o Reliability
o Transparency and Tracking
o Security
o Cost-Effective Services
o Efficient Customer Service
o Flexibility and Convenience
o Technology Integration
o Global Reach and Cross-Border Services
o Quality Packaging
 Customers problems:
o Customers in the logistics and transportation sector often encounter challenges such as delays
in shipments, unexpected disruptions in the supply chain, and rising transportation costs as well
as Service & quality issues.
 Customers’ needs:
o There are four elements “needs” to customer value in logistics, which are: quality, service, cost,
and time.
 Quality relates to the functionality, good performance and technical specification of the offered product,
which covers customer requirements.
 Service includes all services (or support) that are delivered to the customer after purchasing. This includes
the flexibility to meet customer demands or market changes too.
 Cost includes all the transactions that the customer pays for (eg purchasing and life cycle costs) and is
dependent on the logistics costs (including design, production, quality assurance, distribution, inventory
and other operational costs).
 Time is taken to deliver the product to the customer or respond to their requirements.
 DHL's competitors, such as FedEx, UPS, and other logistics providers, aim to meet the needs of the
target market by offering similar logistics and transportation services. They compete through strategies
like competitive pricing, extensive global networks, advanced technology solutions, and a focus on
service reliability. Companies in this industry strive to differentiate themselves by providing specialized
services, innovations in tracking and visibility, and tailoring solutions to specific industry requirements.
Ultimately, competition in the logistics sector centers on delivering comprehensive, efficient, and
reliable supply chain solutions to meet the diverse needs of businesses and individuals.
 For DHL to enhance their services and stay competitive, DHL could consider continuous investment in
technology for improved supply chain visibility, automation, and data analytics. They may also focus on
sustainability initiatives to address environmental concerns. Offering more flexible and customizable
logistics solutions, as well as optimizing last-mile delivery for e-commerce, could further improve
customer satisfaction. Additionally, staying agile in response to changing global trade dynamics and
potential disruptions, while maintaining a strong commitment to customer service, can contribute to
DHL's ongoing success in the logistics and transportation industry.

 There are two market research methods can be applied:

Primary research - new research by collecting first-hands on through surveys, interviews and by talking
directly to the customer.
Secondary research - publicly available information that has already been gathered, such as research
reports, government statistics and trade publications.
 3. Define your market and customer profiles.
 Worldwide Market is targeted by DHL company.
 The market is segmented based on mode of transport, end use, and region. Based on mode of
transport, the market is divided into railways, airways, roadways, and waterways.
o DHL does segment its market, and its market segments include domestic and international
corporate businesses, retailers, and individual consumers.
Thus, DHL is composed of five main divisions DHL Express, DHL Global Forwarding, DHL Freight,
DHL Supply Chain and DHL eCommerce Solutions.
 The evaluation of customer segments likely involves understanding the unique needs, volume, and
preferences of each segment. DHL aims to tailor its services to provide efficient and effective solutions
for businesses and individuals across diverse industries and regions. This adaptability allows DHL to stay
competitive and responsive to the evolving demands of the global logistics market.
 DHL operates in the global logistics and transportation market, catering to a diverse customer base
across various industries. Their market profile encompasses international and domestic freight
transportation, express parcel delivery, supply chain management, and logistics services. Customer
Profiles:
o E-commerce Businesses: DHL serves online retailers, providing last-mile delivery, fulfillment, and logistics solutions
to meet the unique needs of the e-commerce sector.
o Manufacturers and Suppliers: DHL caters to manufacturers and suppliers, offering supply chain management,
freight forwarding, and transportation services to optimize the movement of goods.
o Healthcare Industry: DHL serves the healthcare sector by providing specialized logistics solutions for the
transportation of pharmaceuticals, medical equipment, and other healthcare-related products.
o Technology and Electronics Companies: DHL supports technology and electronics companies with supply chain
services, ensuring efficient and timely delivery of electronic components and devices.
o Automotive Industry: DHL provides logistics solutions for the automotive sector, managing the transportation of
parts and components across the global supply chain.
o Individual Consumers: Through its express parcel delivery services, DHL caters to individual consumers, offering
door-to-door delivery for personal shipments and packages. Understanding and addressing the diverse needs of
these customer segments allows DHL to navigate the complexities of the global logistics market effectively.

4. Conduct a SWOT analysis.

Strengths Weaknesses
1. Global Reach 1. Dependency on Fuel Prices
2. Diverse Service Offering 2. Complex Supply Chain
3. Strong Brand 3. Competition
4. Innovation and Technological Advancements 4. Quality of Service
5. Sustainable Practices 5. Dependence on Global Trade
6. Experience and Expertise 6. Environmental Impact
7. Strong Parent Company
Opportunities Threats
1. E-commerce Boom 1. Competitive Pressure
2. Emerging Markets 2. Global Economic Conditions
3. Technological Innovation 3. Regulatory Changes
4. Sustainable Solutions 4. Operational Disruptions
5. Expanded Services 5. Cybersecurity Threats
6. Strategic Partnerships 6. Rising Fuel Prices
7. Last-Mile Delivery Innovations 7. Environmental Concerns
 Strengths
1. Global Reach: DHL operates in over 220
countries and territories, making it one of
the most extensive logistics networks in
the world. This global presence allows
DHL to serve customers from different
regions, handle international deliveries
efficiently, and compete globally.
2. Diverse Service Offering: DHL’s business
spans multiple divisions – DHL Express,
DHL Supply Chain, DHL Global Forwarding,
DHL Freight, and DHL eCommerce. This
broad spectrum of services allows it to
cater to a wide range of customer needs,
from international express deliveries to
freight transportation, supply chain
management, and e-commerce solutions.
3. Strong Brand: DHL has built a strong
brand and reputation. It’s often associated
with reliability, speed, and quality service,
which helps it attract and retain
customers.
4. Innovation and Technological
Advancements: DHL is known for its
commitment to innovation and the use of
technology to improve its services. This
includes advancements in automation,
robotics, AI, and data analytics to enhance
the efficiency and accuracy of their
logistics operations.
5. Sustainable Practices: DHL has set a
goal to achieve zero emissions logistics by
2050. Their commitment to sustainability
is a significant strength in a world
increasingly focused on environmental
consciousness. This strategy helps
minimize their environmental footprint
and resonates with customers and
stakeholders who prioritize sustainability.
6. Experience and Expertise: DHL has over
five decades of experience in the logistics
and shipping industry. This wealth of
experience and expertise gives it a
competitive edge in dealing with various
logistical challenges and changes in the
industry.
7. Strong Parent Company: Being part of
the Deutsche Post DHL Group provides
DHL with additional financial stability and
resources, aiding its global operations and
strategic initiatives.
Weaknesses
1. Dependency on Fuel Prices:
DHL heavily depends on fuel
prices like any logistics and
transportation company. These
prices’ volatility can significantly
impact operational costs and,
consequently, profitability.
2. Complex Supply Chain: DHL’s
expansive global presence means
it operates a vast and complex
supply chain. While this is also a
strength, it presents challenges in
management, regulatory
compliance across different
regions, and vulnerability to
disruptions.
3. Competition: The logistics and
express delivery market is highly
competitive. DHL faces stiff
competition from companies like
FedEx, UPS, and various regional
players. Such competition puts
constant pressure on DHL to
innovate and keep prices
competitive.
4. Quality of Service: While DHL
generally has a good reputation,
there can be variations in the
quality of service in different
regions due to the vast size of its
operations. Complaints about
delayed deliveries or lost
packages can impact the brand’s
image.
5. Dependence on Global Trade:
DHL’s business is closely linked to
global economic conditions and
international trade. Economic
downturns, trade restrictions, or
political instability can negatively
affect their business.
6. Environmental Impact:
Despite its commitment to
achieving zero-emissions logistics
by 2050, the nature of DHL’s
business still contributes to
environmental pollution, mainly
through its use of air, sea, and
ground transportation. This can
be a weakness in an increasingly
environmentally conscious
market.
Opportunities
1. E-commerce Boom: The rise of
e-commerce has led to a
significant increase in demand for
reliable and efficient logistics and
delivery services. DHL is well-
positioned to capitalize on this
trend as an established player in
this space.
2. Emerging Markets: There are
promising opportunities for
expansion in emerging markets,
particularly in regions like Asia,
Africa, and Latin America, where
online retail and demand for
logistics services are rapidly
growing.
3. Technological Innovation:
There are significant
opportunities in exploring and
implementing new technologies
such as automation, AI,
blockchain, IoT, and robotics.
These technologies can improve
operational efficiency, reduce
costs, and enhance customer
service.
4. Sustainable Solutions: With
increasing global environmental
concerns, developing greener
and more sustainable logistics
solutions could give DHL a
competitive edge. Their
commitment to achieving zero-
emissions logistics by 2050 is a
step in the right direction.
5. Expanded Services: DHL can
broaden its service offerings to
include value-added services.
These could include specialized
handling, tailored e-commerce
solutions, or advanced tracking
services.
6. Strategic Partnerships:
Collaborating or partnering with
other businesses (like e-
commerce platforms, technology
companies, or local logistics
providers in new markets) can
lead to mutually beneficial
arrangements and expand DHL’s
reach and capabilities.
7. Last-Mile Delivery
Innovations: Innovating in last-
mile delivery services, such as
drones, electric vehicles, or
localized delivery hubs, could
increase efficiency and customer
satisfaction.
Threats
1. Competitive Pressure: The logistics and
delivery market is highly competitive, with
several prominent players such as FedEx,
UPS, and several smaller regional
companies. This competition can pressure
DHL regarding pricing, service offerings,
and market share.
2. Global Economic Conditions: DHL’s
business highly depends on global
economic conditions. Economic
downturns, fluctuations in trade volumes,
or trade policy changes can significantly
impact their business.
3. Regulatory Changes: As a global
logistics provider, DHL is subject to various
regulations and laws across different
countries. Changes in these regulations,
or new regulations (for example, related
to environmental impact or data privacy),
could impact their operations.
4. Operational Disruptions: Disruptions
such as natural disasters, pandemics, or
strikes can severely affect DHL’s
operations, particularly because it relies
on complex global supply chains.
5. Cybersecurity Threats: DHL is exposed
to cybersecurity risks with the increasing
digitalization of its operations. A serious
data breach or cyber-attack could have a
significant financial loss and damage its
reputation.
6. Rising Fuel Prices: As a logistics and
transportation company, DHL is
vulnerable to fluctuations in fuel prices.
Rising fuel prices can significantly increase
operating costs and affect profitability.
7. Environmental Concerns: The logistics
and shipping industry is under increasing
scrutiny for its environmental impact.
Despite DHL’s commitment to zero-
emissions logistics by 2050, its current
operations still have a significant carbon
footprint, which could pose reputational
risks and potential regulatory challenges.
5. Study the competition.
 Direct competitors:
Top DHL Supply Chain Alternatives
o FedEx Logistics.
o UPS Supply Chain Solutions.
o DB Schenker.
o Kuehne + Nagel.
o Ceva.
o Expeditors.
o DSV.
o Panalpina.
 Indirect competitors:
o Individual shipping through flight crews, Uber drivers.
o Local shipping companies.
o Local agencies for goods clearance.

 DHL Competitors offer same services “Global logistics & shipping services” and they do offer their
customers the following:
o Comprehensive Logistics Solutions: Competitors aim to provide end to-end logistics solutions to businesses, addressing
shipping, supply chain, and distribution needs.
o Advanced Technology: Like DHL, competitors focus on integrating advanced technology for tracking, analytics, and
automation to enhance customer experience.
 DHL Competitors mainly engage with their customers by:
o Online Platforms: Competitors leverage online platforms for shipment tracking, account management, and customer
support, ensuring an efficient and user-friendly experience.
o Customer Support Services: DHL competitors engage with customers through dedicated customer support teams,
addressing their inquiries and providing them assistance.
 They are located Both Domestic & International (Worldwide)
 Competitors have market share of 57%, while DHL has market share of 43%.
 Competitors utilize various media channels, including their official websites, social media platforms like
Twitter and LinkedIn, traditional advertising channels, and press releases to communicate with the
public and its stakeholders.
 Competitors share Strengths like global reach, diverse service portfolios, and technological innovation.
Weaknesses: Similar weaknesses may include susceptibility to global economic fluctuations,
dependence on global trade, and potential environmental concerns.

6. Set your goals and objectives.

Main Objective: Connecting People. Improving Lives. DHL is the leading global brand in the logistics industry.
DHL vision indicates that they want to be a logistics company to which people will return - they will be
their first choice not only by delivering their shipments, but also as an employer or investor.
DHL mission consists of four main elements:
 Making customers, employees, and investors even more successful.
 Always show respect while achieving high scores.
 Facilitating and simplifying the lives of our customers.
 Contribute to making world better.
 7. Outline your marketing strategies.
Marketing Strategy of DHL analyzes the brand with the marketing mix framework which covers the 4Ps
(Product, Price, Place, Promotion). These business strategies, based on DHL marketing mix, help the brand
succeed in the market.
DHL Product Strategy:
The product strategy and mix in DHL marketing strategy can be explained as follows:

DHL provides large variety of services through its five divisions. One of its divisions DHL Express is one of the largest air carriers in the
world. DHL is a courier service basically for urgent and reliable transportation of documents. Services for rail, road, ocean, and air are
provided through DHL Global forwarding. Transport management, warehousing and value-added services are provided through DHL
Supply chain.

Most of the E-Commerce business is heavily dependent upon DHL which provides its logistic services including delivery of light as
well as heavy parcels. DHL also provides premium service of temperature-controlled storage as well as cold storage for special
products through its matured distribution network. This gives an insight on DHL marketing mix product strategy and service offerings.
The company is known to deliver over 1.5 billion parcels across the world every year.

 DHL Price/Pricing Strategy:

DHL implements competitive pricing policy in its marketing mix strategy and sets very comparable prices with that of its
competitors. Usually, the price of the DHL service demanded by the customers, varies in proportion with the distant of the
destination.

The customized DHL services are decided by means of premium pricing, i.e. these services are slightly expensive than other
standard services provided by the company. DHL also engages itself in agreement with its corporate clients and small
businesses in the market to provides its loyal customers with special discounted prices. The revenue for DHL is
approximately $22 billion annually.

 DHL Place & Distribution Strategy:

DHL has its global presence in more than in more than 150 countries. With more than 800 terminals, offices and
warehouses DHL express carries out its operations with a fleet of over 250 aircrafts. Supply chain division of the company
also operates across 60 countries and has 1500 warehouses and offices. DHL has something called as Multi-User warehouse
which caters to large number of companies and manufacturers. These multi-user warehouses are located strategically such
that they are conveniently accessible especially in the industrial estates. DHL also provides facility of multi-Story warehouse
which has large number of floors connected by elevators.

This is established in the area wherein limited amount of floor area is available. The brand provides real-time efficient online
tracking of all goods as a part of its customer experience.

 DHL Promotion & Advertising Strategy:

DHL promotes its services through television advertising along with newspapers, magazines as well as makes smart use of
social media platforms such as Facebook and Twitter. To improve its visibility, DHL also sponsors for national and
international events such as Formula 1, and world-famous football clubs such as Manchester United. DHL also promotes
itself through campaigns such as Go Green projecting its services which cause minimum harm to the environment reducing
the carbon emissions. To gain popularity DHL also engages itself with various government organizations.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of DHL.
 People:
DHL has links with more than 200 countries and engages more than 300,000 employees to provide reliable and fast service
to its consumers. DHL also engages its employees in various training programs developing their communication skills and
other skillsets. DHL is a people centric company focusing on its employees as well as its customers.
  Physical Evidence:
DHL establishes its identity through its popular logo yellow in color with DHL written over it red color font. DHL also paints
its logo over its delivery trucks, buildings, and packaging materials. It also pays great deal of attention to brochures, website,
business card etc.

 Process:
DHL uses soft trans program to measure the time required for cargo handling. The information gathered is used to inform
the customer about their freight. Questionnaires are used by the company to measure the customer satisfaction. Customer
visits and sales reports are recorded through I-sell program. DHL also has special services for different industries depending
on the industry. High cost is incurred to maintain the customer loyalty even in case of mistake committed by the customer.
This summarizes the entire DHL marketing strategy & marketing mix.

8. Set your marketing budget.

Setting a marketing budget for DHL involves a strategic and data-driven approach. Here are steps to
consider:
 Define Objectives: Clearly outline marketing objectives aligned with overall business goals. Whether it's increasing market
share, entering new markets, or promoting specific services, clarity on objectives is essential.
 Understand Market and Industry Trends: Stay informed about market trends, industry benchmarks, and competitive
landscape. This knowledge helps in determining the appropriate level of investment.
 Consider Revenue and Growth Targets: Link the marketing budget to revenue and growth targets. Determine what
percentage of revenue will be allocated to marketing, considering historical performance and future expectations.
 Allocate Budget Across Channels: Identify key marketing channels (digital advertising, content marketing, events, etc.) and
allocate the budget based on the channels' effectiveness and relevance to the target audience.
 Data-Driven Decision Making: Use data from past campaigns and industry benchmarks to guide budget decisions. Analyze
the return on investment (ROI) for different marketing activities to optimize spending.
 Seasonal Considerations: Consider any seasonality or fluctuations in demand that may influence marketing efforts. Allocate
budget accordingly to maximize impact during peak periods.
 Testing and Experimentation: Reserve a portion of the budget for testing and experimentation. This allows for trying new
strategies, channels, or campaigns to discover what works best.
 Leverage Marketing Analytics: Implement robust analytics tools to track the performance of marketing initiatives. This data
helps in real-time adjustments and future budget allocation.
 Invest in Branding and Awareness: Allocate a portion of the budget to branding and awareness campaigns. While the
impact may not be immediately quantifiable, building a strong brand presence is critical for long-term success.
 Account for Technology and Tools: Include costs associated with marketing technology, software, analytics tools, and any
other resources necessary for effective campaign execution.
 Flexibility for Contingencies: Maintain a level of flexibility in the budget for unforeseen circumstances or opportunities that
may arise throughout the year.
 Align with Sales Teams: Collaborate with sales teams to ensure marketing efforts are aligned with sales goals. This
coordination helps in maximizing the impact of both departments.
 Review and Adjust Regularly: Periodically review the performance of marketing campaigns against set objectives. Be
prepared to adjust the budget based on the effectiveness of different strategies.

By following these steps, DHL can develop a marketing budget that aligns with its business objectives,
maximizes ROMI, and allows for adaptability in the dynamic logistics industry.
 9. Keep your marketing plan up to date.
DHL would typically follow these steps to keep their marketing plan up to date:
 Market Research: Regularly conduct market research to understand industry trends, customer needs, and emerging
technologies affecting the logistics sector.
 Competitor Analysis: Monitor competitors' strategies, strengths, and weaknesses to identify opportunities and potential
areas for differentiation.
 Customer Feedback: Gather and analyze customer feedback through surveys, reviews, and direct interactions to understand
evolving preferences and expectations.
 Performance Metrics: Continuously track and analyze key performance indicators (KPIs) related to marketing initiatives,
customer satisfaction, and overall business performance.
 Technology Integration: Stay abreast of technological advancements and consider integrating new tools for improved data
analytics, customer engagement, and operational efficiency.
 Regulatory Changes: Stay informed about changes in regulations that may impact the logistics and transportation industry
and adjust strategies accordingly.
 Environmental Considerations: Monitor sustainability trends and ensure that the marketing plan aligns with DHL's
environmental initiatives and goals.
 Global Economic Factors: Consider the impact of global economic conditions on trade, shipping volumes, and customer
demand, adjusting strategies as needed.
 Strategic Partnerships: Explore and foster strategic partnerships with key players in related industries to expand service
offerings and enhance the overall value proposition.
 Flexibility and Adaptation: Build flexibility into the marketing plan to adapt quickly to changes in the market, customer
behavior, or industry dynamics.
 Internal Communication: Ensure effective communication and collaboration among different departments within DHL to
align marketing strategies with overall business objectives.

By regularly assessing these factors and making necessary adjustments, DHL can keep its marketing plan
current, responsive to market changes, and aligned with its business goals.