Transcript In der Logistik liegt die Zukunft

Redefining the DHL Brand
By: Joshua R. Beyerlein
To : Avinash Malshe, Ph.D. and Brand Management Class
Date: 5/6/2009
Preview
 DHL Background
 Situational Analysis
 Repositioning of the DHL Express Brand
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The Situation
 2008 - DHL Express Worldwide had around a $3 billion profit worldwide
 DHL Express USA was losing $5 million a day
 Operational costs were two times it’s competitors
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Restructure
 DHL Express moves from 40,000 employees in the United States to 4,000 employees
 Company moves back to an international only carrier
 Over $10 billion in sunk cost after the merger of Airborne Express
 Promised customers and employees you would not exit the United States domestic
business
 Brand loyalty and employee moral is at an
all time low
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SWAT Analysis
DHL’s Internal Strengths

World’s largest transportation carrier

Ship to more countries than our competition

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Customs agents in 140 countries
Industry leading service levels
Strength of the DHL Brand World Wide

Outsourced operations (driving down cost)

Relationships with Lufthansa and Polar Air

Presence World Wide

Lean organization
DHL’s Internal Weaknesses

Integration of EGAP system (new internal
processing application)

Moral of employees

Contractor model at some stations

Lack of flexibility in the United States

Relationship with the USPS for rural deliveries
which can take an additional 2-3 days in transit
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SWAT Analysis Continued
DHL’s External Opportunities
DHL’s External Threats
 We only own around 9% of the U.S. market 
share

 World is becoming flatter increasing
opportunities in countries we already operate 
in
 Growth of world GDP
A worsening of the economic environment causing DHL to
pull out of the United States
Terrorist act causing them to bring down the airline
Strong competitors in both FedEx and UPS

Currency fluctuation

Competition becoming stronger around the world
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Situational Analysis (Porter’s Five Forces)
 1.) Risk of entry by potential competitors
– High barrier to entry cost
 2.) Intensity of rivalry among established companies
– Two strong U.S. competitors FedEx and UPS
 3.) Bargaining power of suppliers
– Controllable even the largest cost fuel
 4.) Bargaining power of buyers
– Strong, but controllable as DHL has been able to add surcharges and annual rate
increases
 5.) Closeness of substitutes
– Air vs. Ocean carriage (2-4 days vs. 6 weeks)
– JIT environment with very little inventory
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Recreating the DHL Brand
 Product – The Company, it’s employee’s and the DHL culture
– Kept 4,000 of the best employees
– Everyone needs to sell
– Incentives around revenue growth
– Proactive responsive company culture
– Empowerment of front line employees
– Proactive transit time guarantee
– Seamless and easy to use
– Company drivers versus independent contractors
Our text states, “The FedEx brand has identified that the delivery person who
comes to pick up the sealed envelopes or delivers them is the key personality in
the FedEx experience for companies.”
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Recreating the DHL Brand
 Promotion – Advancing the brand awareness of DHL Express
– Small Marketing budget
– Trade show concept
– Team up with US Commercial Trade Organization or International Compliance
Association
– Cost around $25,000 could hit 100 markets at a minimal cost of $250,000
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Rebranding the DHL Brand
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Rebranding the DHL Brand
Still in America
Still #1 in the World
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Recreating the DHL Brand
 Price – What can we charge for our service?
– Reduced cost structure enough that we can discount heavily and make money
– In today’s economy need to offer an economic savings
– We currently can not charge a premium
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Control Measures
 Operations
– Service guarantee comes out of local operations budget
 Customer Service
– Customer service held accountable for resolution of issues
 Promotion
– Measure revenue growth in markets that have had DHL Road Show
– Also measure brand awareness and customer satisfaction with small focus groups
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Conclusion
 DHL Express will not leave the United States
– Largest economy in the world and over 55% of all transportation decisions are made I n
the U.S.
– DHL is a strong brand everywhere else in the world
– United Kingdoms leading business brands – 2009
– Culture change needed to give customers a true transportation experience
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Conclusion
 DHL Background
 Situational analysis
 Repositioning of the DHL Express brand
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