62-65 Dhl Bc Spread Def

63

62

Return to sender. Postman unknown We hear about it every day. The world is getting smaller. We live in a global village. The global, 24-hour economy has arrived. Love it or hate it, there can be no doubt that we are more in touch with the remo­ test parts of the world than ever before and goods’ transport has increased accordingly. Of course, several companies have sprung up over recent decades to address this increased demand for distribution. Various large-scale firms are now capable of getting a package from one corner of the world to the other within timeframes it used to take a parcel to travel a few hundred miles. Yet with the history of postal operators, we have all been used to the local postal incumbents delivering our goods. Now that various companies are on the scene, they are just as anonymous, or at least in­distinct from one another. Or are they? Is there a difference between all these contemporary postmen? DHL believes there is, and is taking on stiff competition by doing its utmost to point out its distinctive capacity. Moreover, it has purchased several local goods experts around the world, each with local knowledge and local reputations. Yet, DHL is clearly a global operator. How can DHL manage to capitalise on the local benefits, certainly part of the purchase price and brand value when acquiring its former local operators, as well as leverage its global strength? Global? Local? Both? Taking the fast lane Differentiation, believes DHL, will come from strengthening its values by working together with others in partnerships – others who have developed their local expertise over decades. It will also come from addressing consumers and continuing its highly successful activities in the business markets. To do so, it purchased market leaders in 20 countries, with the final objective of a single brand yet with distinct positioning for the local and the global.

64

But adding this many different companies in such a short period is an organisational nightmare and called for action, including a new strategy based on three pointers and a ‘delivery’ programme:

Dedicated employees In the service industry, the conduct and attitude of employees determine the success of a company’s business. The company therefore devised special training programs for all employees aimed at stressing the aspiration of not just meeting customers’ expectations, but actually exceeding them. Alongside intensive training courses, the program includes a group-wide rewards and incentive system. Global networks As a leading logistics service provider, the company believes it can achieve benefits for itself and its customers by bundling volumes. The resulting eco­ nomies of scale benefit its customers with shorter transit times and lower unit costs. Organic growth Globalisation is the growth driver in the logistics industry. Thanks to its strong presence in intercontinental trade as well as in emerging economies - including Asia, Eastern Europe, the Middle East and Latin America – the company aims to fully utilize its networks to gain market share. First Choice initiative In this project, which in total will include some 5,000 individual projects, the company systematically in­ves­ tigated questions such as: ‘Are our customers really satisfied with what we offer? Are we aware of the main criteria applied by our customers in selecting a service provider? Don’t we already know from customer feedback that there are many areas where improvement would be welcome?’ By being critical in matching its customers’ requirements to its services, and then defining and realising improvement initiatives, the company feels it will truly improve its customer service over the long run. These four main points were underpinned further with the company-wide introduction of seven corporate values that should apply to all the company does: • To deliver excellent quality • To make its customers successful

Coolbrands: Maarten & Anouk in discussion with Jean Paul Duurland and Marc Visser

Staying global. Embracing local. Or both? • • • • •

To foster openness To act according to clear priorities To act in an entrepreneurial way To act with integrity internally and externally To accept social responsibilities

Yet, organisational change is all very well, but if nobody knows about it, it’s not much use. Furthering its drive to address both the business and consumer markets, it has taken on a high profile partner, visible to both target groups: Formula 1 racing. Market analysis was thumbs up all round. It perfectly addresses the 20-49-year old target group, offers global exposure (prior to each race, television broadcasts show DHL transporting the invaluable machines to the track) and yet can be used for relations marketing in local settings. Global and local. It also stresses four features that hold true for racing and for DHL: speed, personal commitment, delivering the extra­ordinary and precision. With this raised profile, DHL is now concentrating on positioning itself further in the consumer market. DHL is probably the most recognisable of all the transporters with its yellow and red logo, and even without the logo, most people will recognise the brand. It is ‘smashable’, an excellent branding method as described by Martin Lindstrom in his book Brand Sense. The campaigns, with a local touch and often using local celebrities, stress the local expertise of its new acquisitions. For example, the campaign entitled ‘Time Definite Reloaded’ used national celebrity pop star Frans Bauer. They are also setting up local service points - In the Netherlands, for example, the company now has around 500 shop-inshop points of call, from where consumers can send their packages - and greatly enhancing their visibility. In January 2007, the company celebrated its 500,000th shipment from a service point. Plans are to increase numbers into the thousands in the Benelux. Finally, DHL is getting ready for at least one more huge event. In 2009, the postal markets open up, promising an exciting time for all logistics experts. DHL is getting itself into pole position. Expect much from the red and yellow.

65 CEO Klaus Zumwinkel | Number of employees 285,000 | Company turnover €60b | Brand values personal commitment, local knowledge, proactive solutions | Brand promise ‘We keep your promise’ | Target group business (20-49-olds), full spectrum consumer market | Primary advertising media all media, TV (Formula 1), reduced printed media volumes