Redefining the DHL Brand By: Joshua R. Beyerlein To : Avinash Malshe, Ph.D. and Brand Management Class Date: 5/6/2009
Page 2 Preview nDHL Background nSituational Analysis nRepositioning of the DHL Express Brand
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Page 7 The Situation n DHL Express Worldwide had around a $3 billion profit worldwide nDHL Express USA was losing $5 million a day nOperational costs were two times it’s competitors
Page 8 Restructure nDHL Express moves from 40,000 employees in the United States to 4,000 employees nCompany moves back to an international only carrier nOver $10 billion in sunk cost after the merger of Airborne Express nPromised customers and employees you would not exit the United States domestic business nBrand loyalty and employee moral is at an all time low
Page 9 SWAT Analysis
Page 10 SWAT Analysis Continued
Page 11 Situational Analysis (Porter’s Five Forces) n1.) Risk of entry by potential competitors –High barrier to entry cost n2.) Intensity of rivalry among established companies –Two strong U.S. competitors FedEx and UPS n3.) Bargaining power of suppliers –Controllable even the largest cost fuel n4.) Bargaining power of buyers –Strong, but controllable as DHL has been able to add surcharges and annual rate increases n5.) Closeness of substitutes –Air vs. Ocean carriage (2-4 days vs. 6 weeks) –JIT environment with very little inventory
Page 12 Recreating the DHL Brand nProduct – 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.”
Page 13 Recreating the DHL Brand nPromotion – 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
Page 14 Rebranding the DHL Brand
Page 15 Rebranding the DHL Brand Still in America Still #1 in the World
Page 16 Recreating the DHL Brand nPrice – 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
Page 17 Control Measures nOperations –Service guarantee comes out of local operations budget nCustomer Service –Customer service held accountable for resolution of issues nPromotion –Measure revenue growth in markets that have had DHL Road Show –Also measure brand awareness and customer satisfaction with small focus groups
Page 18 Conclusion nDHL 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
Page 19 Conclusion nDHL Background nSituational analysis nRepositioning of the DHL Express brand