Marketing of Services

Logistics

Aswin Panicker
Dushyant Sareen
Nehruji S
Sameer Alam
Sunit mishra
Objectives

 The primary objective of logistics management is to

effectively and efficiently move the supply chain so as to
extend the desired level of customer service at the least
cost.
 Thus, logistics management starts with ascertaining
customers’ needs till their fulfilment through product
supplies.
 Logic behind Logistics

 Indian logistics is growing at 20% vis-a-vis 10% growth of

world.
 Logistics accounts for 6.2% of the GDP and 11.2% of the
service GDP
 STP

 Segmentation is based on
 Situational factors such as urgency and the size of the order
 Operating variables such as the means of transport ,distance,
frequency of transport.

 Targeting: It is based on the segmentation, resources and the

interest of the company and consumer.

 Positioning: according to core competencies.

 LOGISTICS

IN HOUSE 3PL, 4PL

ROAD WAYS RAIL WAYS AIRWAYS SHIPPING

 Product

 Services

 Transportation

 Supply chain management

 Warehousing
 Price

 In the logistics industry pricing strategy is based on 3 approaches

• Cost centric approach-

Cost +margin
•  Customer centric approach-

According to this strategy different prices are charged to different

customers depending on their orders
• Service centric approach-

What all services are provided to the customer and accordingly prices
are charged
 Place

 Refers to how the product gets to the customer; for example, point of
sale placement or retailing.

 It is the channel by which the service is sold (e.g. online vs. retail)

 In order to serve the maximum no. of people, it should have greater

network of outlets to collect

 It should either be reachable to the customer in the easiest possible

means
 Promotion

 Every logistic company is to provide complete end to end

supply chain solution to their customer.
 So while promoting their brand they should highlight
those core strength which are distinctive.

 Every customer has different needs, according to the

strengths highlighted in their promotional activities,
customers choose logistics company which can fulfill their
need / requirement completely.
 People

 Many services of the logistics company depend on direct,

personal interaction between customers and a firm’s employees.

 The nature of these interactions strongly influences the

customer’s perceptions of service quality.

 Customers will often judge the quality the services they received
based on their assessment of the people providing that services.

 Customer also judges the service on the basis of word of mouth or

past experiences.
 Process

 Can be defined as set of activities in order to produce output.

1) All the marketing activities carried on by logistic company help them in taking
orders from different manufacturing companies.

2) Prices are negotiated on the basis of pricing strategy

3) Orders are taken as per the requirement of customers

4) Committed delivery is provided to the customer with the help of technologies like
TPS (transaction processing system), GPS (goods processing system), calling facility
etc

5) Anywhere cheque deposition facility is provided to the customers.

 Physical Evidence

 The appearance of infrastructure such as buildings, landscaping,

vehicles, interior furnishing, equipments, staff members, sign, printed
materials and other visible cues of Logistics Company provide tangible
evidence of a firm’s service quantity.

 This industry manages physical evidence carefully as it knows the

profound impact on customer’s impressions.
 Product Quality

 Speed

 Conformance

 Security
 Dynamix
Dairy
industries
(supplier of
cheese), Pune
 Trikaya Agriculture
(supplier of iceberg
lettuce), Talegaon
 Vista processed foods
(supplier of chicken and
vegetables), Navi
Mumbai
 Amrit food (supplier of
UHT milk and milk
products), Ghaziabad
 Indian market

 Major players in the multi modal logistics industry are

 Concor
 Gateway Distriparks Ltd (GDL)
 Allcargo
 SICAL
 Transport Corporation of India
 Gati
 Trends

 Efficient utilisation of technology from booking to tracking

 Consolidation with industry majors buying into smaller firms

 Inorganic growth to tap new markets

 Scope for niche players operating on high margins

 Customised solutions for different players