Air Express market for DHL Express in Ludhiana Presented By:- Gagandeep Singh MBA-2(A) nder the Guidance of :- rs. Shilpa Jain Faculty, PCTE)
Air Express market for DHL Express in Ludhiana
Presented By:-
Gagandeep Singh
MBA-2(A)
Under the Guidance of :-Mrs. Shilpa Jain(Faculty, PCTE)
Origin of Logistics
Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to different positions.
In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and distribution of supplies.
Logistics- An introduction
• Logistics is concerned with getting the products and services where they are needed and when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support
Components of Logistics
• Information• Transportation• Inventory Warehousing• Material Handling• Packaging
Introduction of the Group
Deutsche Post DHL brings two powerful brands to the marketplace.
• Deutsche Post•DHL
Vision and Mission
• DHL’s mission is to be the first choice worldwide.
• DHL’s vision is to transform the logistics industry and to deliver beyond customer’s expectations.
DHL- An Introduction
• DHL are the first letters of the last names of the three company founders - Adrian Dalsey, Larry Hillblom and Robert Lynn.
• There are 4 divisions of DHLoDHL Mail DivisionoDHL GLOBAL Forwarding(DGF)oDHL SUPPLY CHAIN DivisionoDHL Express Division
DHL Express India Pvt. Ltd
• An elite international air express service provider in India.
• Provide services from international air express to high-end logistics solutions including repair and return.
• First to provide track-and-trace services in India via email, SMS, Internet.
Services of DHL Express
• DHL Services to Another Country (Exports)
Services to India (Imports)
• BLUE DART
Domestic Services within India.
Export Services – International Express Delivery
• Time Definite – Time-Critical Pickup and Delivery.
• Day Definite – Less Urgent, Cost-Effective Delivery.
Service Delivery Commitment
DHL EXPRESS 9:00 Time-critical: guaranteed next
possible day by 9:00 a.m.
DHL EXPRESS 12:00 Time-critical: guaranteed next
possible day by 12:00 noon
DHLEXPRESS WORLDWIDE Time-sensitive: delivery by end of
next possible day
Time Definite – Time-Critical Pickup and Delivery
DHL EXPRESS 9:00
• Time-critical International shipping needs.
• Money-back guarantee and proactive delivery notification.
• Standard booking procedure and customer support.
DHL EXPRESS 12:00
• Guaranteed door-to-door delivery before 12:00 noon on the next possible business day.
• Time-critical international shipping needs.
• Money-back guarantee with proactive delivery notification available on request.
• Standard booking procedure and customer support.
DHL EXPRESS EASY STUDENT
• Time definite express.
• Multiple Shipment Tracking.
• 24-Hour Customer Service Helpline.
Day Definite – Less Urgent, Cost-Effective Delivery
• For international door-to-door delivery within a certain number of days.
• Less urgent and typically heavier shipping needs.
• Limited pickup and delivery locations.
OPTIONAL SERVICES
• SII (Shippers Interest Insurance) • Packaging
• Dangerous Goods• MSDS• Fumigation
• Non-Standard Pickups & Deliveries• Remote Area Service
STRENGTHS WEAKNESSES
Strong Brand Image
Globalism
eServices and
technology
Corporate symbiosis
Tie up with BLUE DART
High Prices
Not as well known as in USA as
UPS and FedEx
OPPORTUNITIES THREATS
Expansion Globally
Joint-Ventures
Increase In The Number
Of Manufactured Goods
Relations With Foreign
Countries
Economic Slow-down
Fuel prices can go up
SWOT ANALYSIS
Financial Ratios Analysis
Current Ratio = Currents Assets Current Liabilities
Ratio2007 2008 2009
Current
Ratio
1.048 1.016 1.308
Year
Liquid Ratio = ( Current Asset – Debtors – Bills receivables) Current Liabilities
2007 2008 2009
Liquid
ratio
1.048 0.9823 0.57
Ratio Year
Absolute Liquid Ratio = ( Liquids assets – stocks – Prepaid Expense) Current Liabilities
2007 2008 2009
Absolute
Liquid
ratio
1.048 0.981 0.548
Ratio Year
Earning per share = Net profit for equity shareholders No. Of equity share
2007 2008 2009
Earning
per share
1.15 -1.40 0.53
RatioYear
Pay out ratio = Dividend per equity share *100 Earning per equity share
2007 2008 2009
Pay out
ratio
78.25 - 112.6
Ratio(%)Year
Trend analysis of Net profit of Deutsche Post DHL (in € m)
Year Net
Profit(€m)
Trend
2005 2,448 100
2006 2,282 93.22
2007 1,873 76.51
2008 –1,979 -80.84
2009 693 28.30
2005 2006 2007 2008 2009
-100
-50
0
50
100
150
Net Profit- Trend
Net Profit- Trend
Graphical Representation
Trend analysis of Revenue Deutsche Post DHL (in € m)
Year Revenue(€ m) Trend
2005 44,594 100
2006 60,545 135.77
2007 54,043 121.19
2008 54,474 122.16
2009 46,201 103.60
Graphical Representation
2005 2006 2007 2008 20090
20
40
6080
100
120
140160
Revenue- trends
Revenue- trends
Year Earning per
share(€)
Trend
2005 1.99 100
2006 1.60 80.40
2007 1.15 57.79
2008 –1.40 -70.35
2009 0.53 26.63
Trend analysis of Earning per share Deutsche Post DHL (in €)
2005 2006 2007 2008 2009
-80-60-40-20020406080100120
Earning per share(€)
Earning per share(€)
Graphical Representation
Introduction to Project
EXPRESS INDUSTRY
Signifies the value addition made through the time definite delivery
It is totally a new age service
The Express division transports via fixed routes and uses standardized workflows.
The quality of their services and the satisfaction of their customers are crucial in determining their success.
DHL Express(Global)Head Office: Bonn, Germany
Revenue: Approx. 10.3 billion euros (as
stated in the annual report 2009)
Shipments: Approx. 842 million
Network: 120,000 destinations served in
more than 220 countries and
territories
Employees: Approx. 100,000
Customers: Over 8 million
Vehicles: Approx. 62,000
Facilities: Approx. 4,500
6 Major DHL Air Hubs: Hong Kong, Leipzig, Bahrain,
Lagos, Miami, Cincinnati/
Northern Kentucky Airport (CVG)
Source: -www.dhl.com
Head Office: Mumbai, India
Year of Establishment: 1979
Ownership: DHL is 100% owned by
Deutsche Post
Domestic Business: DHL has 81.03% stake in Blue
Dart Express India
Shipments: Over 7.7million [2008]
Network: International – 220 countries &
territories
Employees: 1500
Customers: 35000
Vehicles: 300
Facilities: 353 Retail Express Centres &
30 Offices across India
Hubs/Gateways: 5 [Bangalore, Chennai, Delhi,
Kolkata and Mumbai]
Commercial Flights: Close to 75 flights utilized per
day
DHL Express (I) Pvt. Limited
Industry Trends
1991 3.5% Market Share (International Air
Cargo)
2005 11.0% Market Share
International 81.4% of the world’s freighters are used by Air Express Operators
Source: Boeing: World Air Cargo Forecast 2007
Size of Industry 4,175 cr
Average Annual
Growths
17.2% (Estimated)
India
Source: Blue Dart internal estimation
Major Players in India
• DHL Express• FedEx• UPS• TNT• ARAMEX• PAFEX• Blue Dart etc.
Need of the Study
• To describe the characteristics of Air express market in the region under study.
• To increase the market share of DHL express in the region.
Objectives
1) To identify the business prospects for DHL Express in Ludhiana City.
2) To study the factors which affect the choice of the service provider.
3) To know the level of satisfaction provided by DHL Express service in Ludhiana
Research Methodology
Research design
The research design of this research is descriptive.
Universe : All the exporters or importers using Air Express service in the world.
Population : All the exporters or importers using Air Express service in Punjab.
Sampling unit : In this study the sampling unit is every single exporter or importer experiencing air express
services in Ludhiana City.
Sample size: The sample size for this research is 70
.
Sampling techniques• In this research study, convenience sampling is opted.
Data Analysis and Interpretation
Yes No0
10
20
30
40
50
60
70
8070
0
Aware of DHL, as a Service Provider in Air Cargo
Aware of DHL, as a Service Provider in Air Cargo
Fig 4.2 - Awareness of DHL as a service provider in Air Cargo.
Yes No0
5
10
15
20
25
30
35
40
45
50
25
45
Used DHL as a Service Provider
Used DHL as a Service Provider
Fig 4.3 - Have you ever used DHL
DHLFe
dEx TNT
UPS
Aramex
Schien
ker
Chrobinso
nAgil
ity K&NOthers
0
5
10
15
20
25
30
35
25
31
27
30
4
0 0 0 0
15
Existing Service Providers
Existing Service Providers
Fig 4.4 - Your present service providers
Door 2 Door Door 2 Airport Airport 2 Airport0
10
20
30
40
50
60
70
62
10
2
Type of Services
Type of Services
N=68
Fig 4.5 - Which type of services do you use
USA Europe Asia Rest of World0
5
10
15
20
25
30
35
40
45
50
38
46
17
12
Lanes of Trade
Lanes of Trade
N=68
Fig 4.6 - Which are your major lanes of trade
Air Sea0
10
20
30
40
50
60
70
80
68
12
Mode of Logistics
Mode of Logistics
N=68
Fig 4.7 - Which mode of logistics you opt for
Doc's 0-10 kg 10-20 kg 20-100 kg 100-300 kg >300 kg0
5
10
15
20
25
30
10
28
14
22
12
16
Weight Category of Shipment
Category of Shipment
N=68
Fig 4.8 - What is the weight category of your shipments
Door 2 Door Door 2 Airport Airport 2 Airport0
1
2
3
4
5
6
5
1
0
Type of Services Used
Type of Services Used
N=6
Fig 4.9 - Which type of services do you use
USA Europe Asia Rest of World0
0.5
1
1.5
2
2.5
3
3.5
2
3 3
2
Lanes of Trade
Lanes of Trade
N=6
Fig 4.10 - Which are your major lanes of trade
Air Sea0
1
2
3
4
5
6
7
6
1
Mode of Logistics
Mode of Logistics
N=6
Fig 4.11 - Which mode of logistics you opt for
Doc's 0-10 kg 10-20 kg 20-100 kg 100-300 kg >300 kg0
0.5
1
1.5
2
2.5
0
2 2
1 1 1
Weight Category of Shipment
Category of Shipment
N=6
Fig 4.12 - What is the weight category of your shipments
Price Transit Time Clearance Formalities
Paper work Personalized Service
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1.08
2.74
3.23
3.833.97
Factors for choosing a Service Provider
Factors for choosing a Service Provider
N=70
Fig 4.13 - What factors do you consider the most important while choosing a service provider
H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0
2
4
6
8
10
12
14
5
12
8
0 0
Experience to accessibility and responses(through phone and E- Mail)
Experience to acessibility and responses
N=25
Fig 4.14 - Rate your experience for the accessibility and responses through phone and E- Mail
H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0
2
4
6
8
10
12
14
16
3
15
7
0 0
Representative ‘s Ability to resolve the issue
Representative Ability to resolve the issue
N=25
Fig - 4.15 Rate the representative’s ability to resolve the issues
H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0
5
10
15
20
25
32
20
0 0
Overall Experience about Clearance Dept.
Overall Experience about Clearance Dept.
N=25
Fig 4.16 - Rate your overall experience about clearance department
H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0
2
4
6
8
10
12
14
16
18
16
8
10 0
Experience about Shipment Delivery
Experience about Shipment De-livery
N=25
Fig 4.17 - Rate the experience about shipment delivery at your doorstep
Results
• The heavy parcel and sample shipments are important from business point of view
• TNT, UPS & FedEx are most preferred brands along with DHL
• Price is the most important factor for the selection of service provider.
• Present customers of DHL are extremely satisfied with the services.
• Besides Air Express service being costly the people are ready to avail it
Recommendations
• DHL should work on pricing strategy in this region.
• The field sales managers may be given more
authority in offering flexible prices
• Skilled management graduates should be hired to make the repute of the company
• Effective advertisements should be there to promote DHL more and more amongst the potential users
Conclusion
• According to the survey findings DHL has huge potential in Ludhiana. The annual expenditure on air services is significant and DHL can capitalize on this by following potential customers.
The study also concludes that those of whom have used or are using the Services of DHL rate DHL Air Express as one of the best in the industry.
Queries
THANK YOU