The Courier And Parcel Service Companies Marketing Essay

The customers groups presented in figure 1 have similar requirements from their carious, such as fast shipments, low costs and high quality. However, they may differ in many ways, for example frequent demand and size of shipments. To compete in the global market, UPS provides to all their customers the most trustworthy and professional solutions in distribution and logistics.

To better enhance their customer’s satisfaction, Courier companies has created value for their shareholders and sharing responsibility for their world. To provide real update system that track customers shipment, united parcel service for example has implemented UPSNET systems that keep tracking the shipment for long distance (around 500,000 miles) as well as satellite tracking that tracks thousands of packages in daily basis day and connect roughly 1.300 united parcel service distribution plants in 46 different nations.

Furthermore, courier companies have focusing on keep benefits for their customers by placing increasing emphasis on the faster service, accuracy and timed delivery together with some ability to their customers to track packages. Responding to their customers needs, a parcel service company has recently adapted new technology namely; Delivery Information Acquisition Device (DIAD), (a custom-built electronic data collector). By adapting this new technology, courier and parcel service companies have are currently capture both delivery information and customers’ signatures. This data then entered into the DIAD and transmitted over the cellular network through telephones. DIAD system that has recently implemented provides the following benefits for the customers of courier and parcel service companies:

Direct access to customers delivery information (more than five million for parcel service packages daily).

Customers can track their shipment by phone mobile; customer shipments can be given real-time information on delivery status.

A high degree of reliability as a result of the service’s redundancies and backup systems.

The customer services at courier and parcel service companies always provides customers with all information that they need, exactly time about shipment arrives and who has received it is the most important information customers want to know. With many advance technologies adapted, courier and parcel service companies offers truly superlative service, both to merchants and to their customers, and can deliver to any part of the world. To better satisfy customers, courier and parcel service companies focus on certainty, safety and punctuality. Courier and parcel service companies always focus on satisfying our customers in term of politeness and manners of our staff.

Furthermore, to provide benefits to its customers, courier and parcel service companies have committed to environmental improvements in all of its express packaging – paperboard and plastic envelopes, and corrugated boxes and tubes. Most notably, courier and parcel service companies have removed all fiber from its packages and significantly increased the recycled material content that does not harm the environment (www.edf.org). Courier and parcel service companies understand the customers demand of less environment pollutions materials, the new improvements has made by couriers firms while maintaining or improving cost-competitiveness, customer friendliness, aesthetic attributes and functionality. We can say that courier and parcel service companies improved packaging has significantly lower environmental impacts, consuming fewer raw materials, water and energy during manufacturing, emitting less water and air pollution, and generating less solid waste, both in production and disposal after use.

Courier and parcel service companies understand that their customers differ in their demand. For targeted customers, including lawyers, mortgage brokers, and environmentally driven purchasers, the reusable envelope offers specific business benefits by facilitating document returns. This expanded service option of being able to use the just-received package as the return package has already enabled Courier and parcel service companies to capture new corporate accounts and attract new business from its competitors. Additional market gains are likely from packaging that has redesigned with the customer’s needs in mind, resulting in the introduction of several innovative changes that promote ease of use and enhanced functionality. These customer benefits can increase brand loyalty. The environmental leadership of courier and parcel service companies can support their overall brand equity and reputation with customers.

Finally, one key benefit that courier and parcel service companies provide to their customers is the easy accessibility and use of their webpage. Courier and parcel service companies have taken the advantage to launch online services and applications before any of its competitors have. The Internet has enabled these firms to offer more services and do business directly with a greater number of customers. The website of courier firms also lets customers to check shipping rates worldwide and verify proof of delivery.

2. Discuses the challenges to TNT created by the specific characteristics of services

TNT Express Services is a leading business-to-business express delivery company. TNT’s aims to exceed their customer’s expectations through effective and efficient delivering of their goods and documents around the world. TNT always provides add-value to their clients by providing the most reliable and competent solutions through delivery networks. Figure 2 show the domestic and international market leader.

Figure 2: Domestic and international market leader,

Top 5 countries: 100%= Euro 13 Billion

Source: http://group.tnt.com

With all, successfully history that TNT has gained, the recent market researches indicates many challenges to TNT as well as other courier companies to meet its mission and objectives. Studies reported an increasing level of uncertainty is facing courier future market. These studies raise the concern about rising costs that may not be offset by price increases as of the completive nature of the market place. Increases the volume of sales via the internet expected to influence TNT as well as other courier services business, as they continued to be the distributor of choice for many sales companies, also shipping that is more international was being seen as trade liberalized around the world and the economies of developing countries improved.

Furthermore, there is growing consensus between socialites, business forms and politicians about the climate change that harm the environment. The increasing levels of carbon (CO2) in the air because of fiber and plastic materials are trapping more heat, thus increasing global temperatures. The global worming phenomenon will give rise to all sorts of measures and regulations that try to decrease the CO2 emissions around the globe. On difficult situation, that TNT faced is to responded to this challenge by replacing plastic materials with more environment friendly and recycle materials.

TNT realized that demographic trends are changing and creating challenges in the composition of the population across the world. For example, studies explain that Western European countries expected that between 20 per cent and 25 per cent of the population be above the age of sixty-five year old by 2020, while individual will live increasingly in cities with more than five million inhabitants, posing significant distribution challenges to TNT as well as other carious services (http://group.tnt.com). Because of the elderly population, expenditure of healthcare will dramatically increase. TNT realized that this trend have several implications for their transport and distribution chancels, such as growth of healthcare product flows, an increasing demand for consumer distribution networks, and possibly more challenges in attracting and retaining staff.

One of the most challenges that TNT face is the mergers and acquisitions that would continue in order to remain competitive. TNT as well as other firms continues to collaborate with courier firms to increase their services in the face of declines in the volume of letter mail. More recently, TNT has signed up fifty new partners in 2005. However, it announced recently that it would no longer develop new partners. As result of this great challenge, TNT has stopped some regional development programs. TNT has improved and better developed its structure and merged its international and domestic courier services. Nowadays, TNT’s courier services cater mainly to multinationals, which offers them both global and local courier services (http://www.knowledgeatwharton.com).

To responds to mergers and acquisitions challenges, TNT has acquired in China, India and Brazil, and they have to work very hard to be able to meet up TNT’s standards within three years after the acquisition date (http://group.tnt.com). One more challenge is the subcontractors of TNT Corporation. Subcontractors are involved in a substantial part of TNT’s revenues, yet for many of them implementation of TNT’s standards could be a burden because of the limited size of their operations or cost issues.

Moreover, one challenge that persists in carious industries is the healthy and safety issue. For example, TNT faced numerous of health and safety regulations in the countries in which it operates. While their customers stress on the safety of their shipments, TNT executive is committed to enhance the safety by implementing best practices in safety management, processes, systems, tools and training. To response to this challenge, The Board of Management at TNT has provided adequate assets and has established quantifiable objectives and targets to maintain and continually improve TNT’s health and safety performance.

3. Explain why customer care is a vital part of TNT’s strategy in this competitive industry

Improving Customer’s satisfaction is a key strategy for TNT to better enhance its competitive position in the global market as the leading business-to-business express delivery company in the world. Understanding customer’s needs and wants will improve TNT business and then increasing profits. To better understand customers, TNT has but various standards that primary developed from their customer’s feedbacks. It is a sign of TNT’s commitment that it only measures where it has exceeded, rather than just met, customer expectations. TNT attempts to measure their customer satisfaction levels once every quarter, the results of the 2009 Customer Loyalty Measurement (CLM) Survey clearly indicate the steadily growth across all aspects of their business (http://www.tnt.com).

TNT effortful seeks to be a firm that knows its customers and that responds to them with the best products and services that suite them. The only way to achieve this is to measure their customer satisfaction. TNT believes that constantly measuring customer satisfaction empty a sustainable competitive advantage, as no rivals firms could replicate the insight and the experiences that TNT has of its customers. As part of its strategy, TNT treats its customers in a friendly and professional, while it focused on improvement wherever possible. The two focuses believed to enhance TNT customer’s locality, and thus profitability. Twice a year, TNT measures their customer satisfaction and loyalty, which reaching at least 60% of the trading account base, covering all customer sizes from global to small and customers, and covering all lines of business. The measurement relates to the key customer satisfaction drivers as stated by customers in customer forums. Satisfaction measured for each key transaction component from the booking through to the invoicing process and analyzed independently with an external specialist provider.

Added to paper survey TNT distributed to all their customers, by the call centre department, TNT conducts a customer satisfaction survey among consumers and small and medium sized enterprises served. For the larger business firms, TNT conducted an annual survey to measure their satisfaction on services provided. TNT has a method to measure their customer’s satisfaction. TNT calculated the final score taken by customers and taking the weight give to values and multiplying this by the score for each value. Figure 3 and 4 shows the customers satisfaction express for the final score. From TNT management point of view, this score is more relevant and reliable than the consumer score, and in addition, the other scores give virtually the same picture.

Figure 3: Customer satisfaction expresses Figure 4: customer satisfaction Mail

Source: http://group.tnt.com/annualreports/annualreport07/annual_report/chap-2.html

As employees are internal customers, TNT develop marketing strategy that aims to “instilling pride to their internal customers”. To TNT, this means that all employees are valued individual and that TNT consistently enhance and supports development of their employees skills, capabilities and competencies to deliver performance and enable career development and personal growth. TNT delegates employees to go the extra mile for their customers that would enforce their company values. In return, TNT ensures that all hard workers rewarded. As part of their Human resource strategy, TNT rewards their employee’s performance according to market practice. TNT seeks to attract, motivate and retain the best employees who meet TNT’s current and future goals and objectives.

Finally, TNT focuses on customers care (e.g. employees) as part of their marketing strategies because they believe that inspiring and leading employees to a specific level of performance that gives excellent customer experience. The head-managers at TNT expected to treat all stuff with respect, integrity and motivation way, employees who work hard rewarded as well as their head-manager. This make TNT staff feel more responsible for building the comfort possible work environment and create for their team the best corporate culture that focus on performance improvement. TNT aims to similarity apply this philosophy to its subcontractors that enhance their culture of high inspiration.

4. What do you see as the main areas of competitive advantage in the future? Explain how TNT can use these to remain a market leader

From my reading, I found that there are many potential competitive advantages in the future for carious industries. On of future competitive advantages is focusing on improving services through the adaption of new technology. In our dynamic business environment, TNT also should constant focus on innovation and ideas that are imperative. In future, the innovations become the product itself. It said that It does not take a production line to compete, just a good idea that makes all the difference.

From my reading I found that the company who adapt the technology first achieve a competitive advantageous over the other firms. Furthermore, from my understanding, I found that couriers companies, in order to achieve competitive edge they have to distinguish their self and their name. The brand name to carious industry is very important for present and future competitive edge. TNT’s thus should develop a strategy that aims to differentiate their brand name through inspiring initiatives on responsible corporate nationality. Furthermore, I believe that TNT has to make its own reputation building that sustains its future competitiveness.

Today, TNT believed to be highly relevant, high-recognized brand for its customers in the Netherlands. However, I believe that outside Europe, TNT, as well as other carious brands that delivery services deemed as low-end and it is still facing insufficient differentiation. In the state of Kuwait TNT is almost unknown brand name compared to HDL, American express and Aramic. Therefore, I believe that for future competitive advantages, TNT a as well as other carious companies should better articulates what makes their brand unique, both internally as well as externally.

Furthermore, to be in competitive position in future, TNT has to persist focusing on their quality and performance. Quality and high services performances should not considered as a different issue within a firm and the constant improvement philosophy has to be as an integral part of the business strategy of TNT as well as other companies in this industry. Like focusing on customers care and add value services, I believe that the quality issue thus should be incorporated into TNT corporate culture. TNT thus should interestingly focus in performance improving of their transportation services as a whole. To achieve this objective, TNT has recently shared in the Logistics and Transport Sustainability Group (LTSG) of the World Economic Forum. However, I believe that TNT should use the recommendation and directions of its stakeholder as a key for its discussions with its competitors.

Future competitive position can by no means to be achieved without focusing on employees training program and education courses. I believe that training staff and motivation play a key part of achieving competitive adage to customer’s service performance. Employee’s motivation, communication, commitment and an ability to work in team should take into account when talking new staff, beside academic records and previous years of experiences. I believe that if all employees are given training courses that focus on customer care as part of their induction, this will create better corporate culture that enhance TNT goals and objectives.

The key skill in a technology society is the ability to learn. With constant training of employees and personnel to changes in the industry and technology will put companies in a position to better serve their customers that are the driving force for any business. Atkinson uttered; “There has to be a culture of customer care which is generated throughout the company. if you haven’t got the right attitude you’ll never get the job done successfully “. (http://www.roadtransport.com)

I believe that one of today as well as future competitive advantages that carious company should considered is the social responsibility. TNT’s should seek to take part and share the responsibility for the world in which it operates. If TNT considered the social responsibility, they would benefits from globalization and the increase in global flows of goods that is a result. As technologies make the distances between the continents get smaller, all residents of this planet are becoming neighbors.

This implies that the difficulties of the developing countries are also the problems of the developed part of the world, which make a heavy responsibility on TNT Corporation. Today, TNT is certain that any plans or actions that a firm embarks to better address a major problem can be a vital source of pride for its employees and positively influence a firm reputation. However, I believe that for future competitive edge, sharing the societies responsibility are vital factors for TNT as well as any other carious services in this industry, where success is a direct result of social engagement, their satisfaction and employees and customers trust.

5. Critique the methods use to measure customer satisfaction and levels of customer care

TNT measure customer satisfaction and loyalty in quarter bases by uses various methods to measure customer satisfactions including mail, survey paper form and phone call centers. Feedback from various customers leads TNT to revise their attitude and improve their performance standards. TNT contacts with all of its customers, from multinational businesses to small and customers. In their mission, TNT stated that; “We aim to always exceed customers’ expectations. And we encourage our people to go the extra mile”. They ask their customers about many aspect of dealing with TNT services. The conventionally key performance indicator for their failures or success is the extend to which errors were minimized. I believe that this traditionally approach partially reflect the real performance of TNT, however other indicators such as, quality of shipments, speed, and employees friendliness thus should be incorporated too.

TNT has established customer satisfaction unit that comprising a driver, loading bank operative salesperson, clerk and traffic office operator. The unit managed by a supervisor or an executive who prepares an action plan to enhance the progress of the action plan in monthly meetings. Furthermore, TNT has come up with a concept is calls the Perfect Transaction that help in testing performance. this measures all, the elements of delivery such as whether the consignment was collected on time, what condition it arrived in, and whether an accurate invoice was produced, TNT take 10 % of consignments and measure them at random, we believe that this gives us a good view of what is going on in the business Atkinson says.

From my reading, I found that TNT customer’s express do not considered the question of who is quality or to be blame, their primary focus is on that the service promised and paid to be delivered in time. To better develop and enhance their services based these customers feedback, TNT prepared deliveries on be on time, this become as prime standard of performance for TNT. Weekly reports for each location showing actual. Results for all for the following outcomes were introduced and this ongoing measurement discipline continues to help refine quality of service, Deliveries on time, misrouted consignments, copy consignment notes raised and not matched with original documents, and failures to deliver on time analyzed by reason.

Increasingly, TNT developed further performance indicator targets for the support processes to include their administrative and selling function. At present, TNT heavily depends on their customer’s feedback, which provides measures of their ability of satisfy customers. Frequent and unrelenting reporting disciplines continue to help quickly introduce improvements whenever standards are not achieved. A named individual at each depot is responsible for each key performance outcomes and staff is empowered to call on additional resources to achieve required results.

From my own perspective, I believe that TNT undertaking too frequent monitoring and measuring of their customer satisfaction and loyalty. This could be disadvantageous because trends do not have time to emerge. From my experience, TNT would be better to react to customer survey results rather than looking at the bigger and longer-term picture. I believe its it is helpful, for example, to set specific improvement targets once or twice a year basis and to monitor the effectiveness of these improvements. Importantly, customer research results need to be communicated to employees so that improvements can be made.

Finally, TNT would be better if they use various indicators for their success besides measuring errors. To success in the global market, TNT should focus on measuring other aspects that may have but not direct relation to their success, for example measuring employee friendliness, customer expectation toward speed, quality, and prices. Finally, I strongly recommend TNT to compare results of customer’s survey with various competitors in the market. TNT should not be satisfied because the result of their survey is high, but they have always to compare themselves with other market competitive. The aim of this comparisons is that TNT can better understand their weakness and strength related to the industry, which eventually enhance and improve their development.