Evaluating The Brand Value of DHL Express Compared To Its Competitors
Evaluating The Brand Value of DHL Express Compared To Its Competitors
Prepared For:
Chairman
Internship Placement Committee
Prepared by:
Exam Roll Number: 110474
4th year, 8th semester
Batch Number: 20th, BBA Program
Academic Session: 2010-11
Chairman
Jahangirnagar University
Savar, Dhaka-1342
Dear Sir:
Here is the internship report on “EVALUATING THE BRAND VALUE OF DHL EXPRESS
COMPARED TO ITS COMPETITORS”, which is the essential part for the requirements of 8th
semester BBA program.
In my report I have took a glance at the factors an Express courier should possess. Analyzing the
factors I managed to conduct a survey with open ended questionnaire. From this study readers
will learn what are the important factors that contribute most to enhance the brand value of an
Express Courier company. Besides, they will learn about the current evaluation on brand value in
the eye of customers.
If there is any query regarding this report, I am available at any time for explanation.
Sincerely Yours,
All praises to the Almighty Allah for giving me physical & mental strength, and
blessings to successfully carrying out the Internship Report.
I would like to express my sincere gratitude to DHL Express and all the customers who
co-operated to make this research successful. Finally, my gratitude goes toward my
parents and friends for their enthusiastic co-operation and constant encouragement.
TABLE OF CONTENTS
Executive Summary
1.0 INTRODUCTION
1.3 Objectives 2
1.4 Methodology 2
1.6 Limitations 3
2.5 Purpose 5
8.0 CONCLUSION 22
References
Appendix
LIST OF FIGURES
The research has been carried out as a part of BBA program and submitted as a part of
the Internship Program of the researcher. The researcher worked in a renowned Express
courier company, DHL Express Bangladesh and got acquainted with extensive research.
The company mainly deals with exporting documents and parcel through Air, so the
company is responsible to do research in order to find their brand value compared to its
competitors inside Bangladesh Air Express Industry.
Dealing with Competitors is one the main parameters which differentiate one company
with another. About 35 years back, DHL Express was only Air Express Courier Company
exiting in Bangladesh and they continued their monopoly until competitors like FedEx,
UPS, TnT, Aramex established their operations. For standing strong as a Market Leader,
DHL Express always considers their competitor’s strategy and formulates their ones too
based on situation.
In this study the researcher tried to evaluate what are the important factors that
contribute most to enhance the brand value of an Express Courier company and using
those factors the market position of close competitors has been suggested.
1.0 Introduction
The express industry is one of the fastest growing sectors in the global
economy. It is now employs around 1.25 million people directly – larger
than the petroleum refinery industry and supports over 3.25 million jobs in
total. It made a direct contribution to world GDP of US$130 billion in 2012.
A broad range of industries use expresses services. But the largest users are
typically ‘high tech’ parts of manufacturing, pharmaceuticals and business
& financial services. The greatest contribution made by the express industry
is in enabling companies in all regions of the world to compete effectively in
an increasingly global market.
1.3 Objective
1.4 Methodology
As mentioned earlier, there are mainly 5 Express couriers in Bangladesh who are
close competitors. The researcher will find out the factors that affect customer’s
expectations and prepare a close ended Questionnaire. Survey will be conducted
among customers of those 5 selected Express companies.
Most of the companies who take logistics support from express couriers do use
more than one courier at a time. So, sample will be randomly chosen from the
database that do or did business with more than one express company over the
course of time.
For a survey to be a reliable one, the researcher has considered 12 customers per
courier which indicates that the sample size will be 60. As the industry in
Bangladesh is not a larger one yet and so it can be assumed that almost all the
sample are well aware of the industry condition and capabilities of different
couriers.
There have been a very small number of research have done based on Express
courier industry in Bangladesh. Few couriers have tried to survey their customers
to take feedback about themselves only but they haven’t compared with
competitors through this type of research. True picture of the industry and brand
value in the eye of customers can be unveiled through this paper and companies
would be able to know their improvement areas.
1.6 Limitations
The research has been done on surveying 60 customers who are randomly chosen
following specific criteria mentioned in methodology part. So, it may not reflect
the whole scenario of the industry but surely it will come up with some clear
views on the proposed subject matter.
Logo:
DHL Worldwide Express Pvt. Ltd is the global market leader in international
express, overland transport and air freight. It is also the world's number one in
ocean freight and contract logistics. DHL`s international network links over 220
countries and territories worldwide. Around 285,000 employees are dedicated to
providing fast and reliable services that exceed customer's expectations in 120,000
destinations in all continents. DHL is a part of the world's leading postal and
logistics Group. In DHL there have different divisions: DHL Express, DHL
Global Forwarding, Freight and DHL Supply Chain and DHL Packet.
On 25th Sept. 1969, Adrian Dalsey, Larry Hillblom and Robert Lynn incorporate
DHL; The Company begins by operating a door-to-door express delivery service,
transporting documents only between San Francisco, California and Honolulu,
Hawaii. In the beginning, the three partners delivered shipping documents by air,
so that they arrived at customs offices pass through customs with less delay. After
one year, DHL is handling shipments for 40 clients and expanding its operations.
In 1980 the organization was so large that it was re-structured into regions, linked
by a telecommunications network. DHL is the first air express company to
formulate plans to use state-of-the art packet-switching to track packages and aid
communications between DHL staff. DHL continues its massive global growth
programmed as well as opening in territories. The new DHL is a global leader in
express, freight and logistics and is positioning itself as a most multinational
enterprise. It has 60,000 vehicles and an integrated network that links more than
220 countries and territories worldwide.
2.3 Mission
This is further underlined DHL’s mission statement, which has four main
elements:
In present year 2015 DHL express focus on being good to great. They are focused
on their e-commerce sector and make a fully automated system for their customer.
2.4 Vision
Their vision emphasizes that they want to be The Logistics Company for the
World. This goes beyond the simple fact that, as a global company, they presents
in over 220 countries and territories, or that DHL often the very first logistics
company to enter new markets. Their vision stresses that they want to be the
logistics provider people turn to – their first choice not only for all their shipping
needs, but also as an employee or investor.
2.5 Purpose
A company with a purpose: DHL not only deliver prosperity, they transport
health, power growth, deliver joy. Every day they connect with people and
improving their lives. DHL deeply believes in each and every contribution in their
daily work make a difference.
Because of the nature of corporate citizenship and its reach into the breadth and
depth of an organization DHL’s work also supports of the other Group Corporate
Values, which are:
Like the other companies DHL is also divided into some departments. Every of
these departments are performing their tasks in coordination with the other
departments. The employees of concerned departments are committed to meet the
goal of the organization by performing their jobs. Let’s take a look at the
organizational structure of DHL Express here-
Operations
Accounting Marketing
& Finance & Sales
DHL
Express
BD
Customer Information
Services Services
Human
Resources
The global economy’s increasing reliance on trade means that countries are also
increasingly dependent on efficient and competitive means of both delivering
exports to their destinations and bringing in imports from other countries. There
are a number of aspects to such services that are important:
But there are a number of other ways in which express services and their operators
contribute to competitiveness:
Air Express couriers provide totally different services to its customers. Unlike the
local couriers who deliver parcels only inside the country, they take better care of
shipments. The shipment handling, the process and all the functions related to
operation and sales is totally an exception. Based on practical experience and
observation, the researcher could find out about twelve different factors or
characters that an express courier must have. These are- Service (Product) Quality,
Availability (Place), Price, Promotion, Customer Service (people), Process, Online
Tracking (physical evidence), Security, Customs Clearance, Quickest delivery, On
time Pick-up service, Warehousing. First seven factors match totally with the 7P’s
of service marketing and rest five are based on the nature of business
characteristics.
There are many couriers operating in Bangladesh. Among these five most
renowned one and dominate almost 98% of the Air Express industry. These five
couriers are- DHL Express, FedEx, TNT, Aramex, UPS (United Postal Service).
Based on above stated twelve factors the researcher has tried to find out the brand
value of each courier through a questionnaire. With an opinion of randomly
selected sample it is possible to get a basic idea about the important factors and
which company is able to execute it better than others.
Through a likert scale, at first the researcher tried to find the most important
factors that an express courier should have in the eye of customers. A brief
description of analysis in given here-
a. Service (Product) Quality:
Among 60 samples, it is found that almost 36 responded strongly with this
feature. They consider Service quality as one of the most essential characters
of an express courier.
b. Availability:
Most of the people agreed with the availability or outlets of courier service in
nearby places. Almost 50, among 60 of them expressed their opinion in favour and
made it an important character.
Fig 4: Availability
c. Price:
Almost all the customers have provided opinion that pricing is a very important
factor as expected. When there is a matter of selling, there will remain concern
with pricing.
Fig 5: Price
d. Promotion:
Promotional offers are always lucrative for customers and survey result brought
out this result in an effective way. Each and every customer liked the idea of
providing promotional offers in occasions.
Fig 6: Promotion
e. Customer Service:
A large portion thinks that Customer service (people) must be ensured so that
customers can deal with them and know every pros and cons. An efficient
customer satisfactory service is only possible through ensuring insane customer
centric culture.
Fig 7: Customer Service
f. Process:
The shipment processing, all the different rules applied for sending parcels to
different countries, its packaging and so on effect customer decision. Different
couriers provide different kinds of flexibility within same rules.
Fig 8: Process
g. Online Tracking:
Not all the air express courier can provide this opportunity to track shipments by
oneself. But customers want this option from each and every courier.
h. Security:
Shipment security is always important and that’s why most of the people agreed
with the proposal. But at the same time, a few think that, express courier itself
means security and so they put disagree with the notion.
Fig 10: Security
i. Customs Clearance:
Many customers use their own clearing and forwarding (C&F) agents. That’s why
they are reluctant on customs clearance issue.
k. On time Pick-up:
Customers sometime call for picking up shipments from their home or office.
They are committed a time frame within which PU will be done. Customers want
to avail this on time pick up opportunity to avoid their shipping hassle free.
Fig 13: On time pick up
Based on the 12 factors associated with Express couriers, the researcher now
asked 12 open ended question to rank best courier in the category. The
questionnaire response analysis is given here-
In this category, DHL and FedEx are clearly ahead and competing with each
other. Other couriers TNT, Aramex and UPS seem to compete within themselves.
Fig 16: Question 2
FedEx, TNT and Aramex seem to close competitors in the category and they are
more committed to pick up shipment after booking as per respondents.
DHL Express is found topper in the category after a close encounter with FedEx.
Others are yet to attain the position these two already achieved.
As per 50% of the sample, DHL Express handles the shipment in a safest way
which reduces the possibility of lost and theft.
Fig 22: Question 8
Customs clearance is one of the most important factors affecting the air express
services. In case of taking prompt actions and easy clearance procedure the
customers prefer mostly DHL & FedEx. Others are found to compete within
themselves.
Again, a huge vote found in favour of DHL in operating customer points and
outlets to receive shipment in nearby places. Almost 50% agrees with the notion.
UPS and Aramex is said to operate less outlets compared to others.
k. Efficient Warehousing:
FedEx and TNT are found most supportive in this case and Aramex and UPS is
preferred to some extent. However, DHL is seen extremely bad in warehouse
management.
Fig 25: Question 11
It’s been a quantitative research where the researcher has tried to evaluate the
brand value of DHL Express compared to its competitors. Here is a summarized
view of all the questions as per responses-
Q12
Q11
Q10
Q09
Q08 UPS
Q07 Aramex
TNT
Q06
FedEx
Q05
DHL
Q04
Q03
Q02
Q01
0 10 20 30 40
Factors affecting mostly give a big boost to increase the brand value of a
certain brand and DHL Express is still found to be ahead in those sectors.
Through this survey, DHL Express would be able to know clearly their
strength and weaknesses. If they work on overcoming their weaknesses
then their brand value will surely increase.
Except FedEx, others are still a less threat for DHL to retain its market
leadership but at the same time DHL has to keep an eye on market
movement continuously.
Finally, DHL Express can take initiative to increase their brand value in
market with the help of this quantitative analysis.
8.0 Conclusion:
DHL Express is carrying a great brand value in the eye of customers but at the
same time facing a good fight from the close competitor like FedEx. If DHL
Express Bangladesh can overcome the shortcomings mentioned after analyzing
different factors then they can enhance their brand value to a greater extent.
References
Dwayne D Gremlar. (2011). Services Marketing: Integrating Customer Focus across the
Firm. ISBN (10)-0-07-070099-0 .
P A Consulting Group Inc. (2011). Air Express Industry: An assesments of economic
benefits and regulatory barriers
US International Trade Commission. (2004). Express Delivery Services: Competitive
conditions facing US based firms in foreign market
Page 37 of 47
Service Quality(Product)
Availabilty (Place)
Price
Promotion
Process
Security
Custom Clearance
Quickest Delivery
On time Pick up
Warehouse Facilities
Which Courier more justified Rules and Restrictions for Safety and Smooth
Delivery?
Who among these competitors are equipped with more Customer Points or
Outlets in major Cities?
Page 46 of 47
If one of your closest friends needs to send top urgent documents within
short time in a secured way then which company will you suggest among
these?