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Stakeholder Marketing -Meeting Customer needs 12924755

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Assignment/Project Front Sheet

CIM Membership Number 12924755

Unit Title STAKEHOLDER MARKETING

Level/Award PROFESSIONAL CERTIFICATE IN MARKETING

Accredited Study Centre STRATEGY COLOMBO

By submitting this assessment I confirm that I understand and abide by the CIMsplagiarism and collusion regulation.

(Optional) I hereby give consent for my assignment/project, if accepted, to be available for CIM usein relation to dissemination of best practice and, or, other appropriate purposes. It is on theunderstanding that all studying member numbers would be removed prior to use for the purposes offull anonymity.

Tick here to opt out


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STAKEHOLDER MARKETING 2012 March submission

The Chartered Institute of Marketing

Student No: 12924755

Word Count (Excluding index, appendix and Conclusion):

DECLARATION

"I confirm that in forwarding this project for marking, I understand and have applied the

CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment isthe result of my own independent work/investigation except where otherwise stated. Other

sources are acknowledged in the body of the text and/or a bibliography is appended. The

work that I have submitted has not previously been accepted in substance for any other

award. I further confirm that I have not shared my work with other candidates."

Task 01 : 835 Words

Task 02 : 2268 Words

Task 03 : 1275 Words

Total : 4378 Words


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St 12924755

PROFESSIONAL C

OPTION ONE

keholder Marketing -Meeting Customer needs 1

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ERTIFICATE IN MARKET

EETING CUSTOMER NEED


ING


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INDEX

TOPIC PAGE

Task 1 Audit findings of Scanwell Logistics

Key Customer Groups. 06

Summary of Marketing Mix 06

Scanwell Logistics CRM Strategies 07

Report

Customer Group impact and Influence 09

Analysis and Evaluation of Marketing Mix... 11

Recommendation of developing the Marketing Mix 14 Measuring the success of recommendations .. 16

Task 3 : Discussion Paper

Concept of relationship marketing..... 19

Analysis of Scanwell Logistics CRM strategies.... 20

Recommendations of improvement.. 22

Cost benefits of recommendation... 23

Appendix 1 The Organization Back ground.. 24Appendix 2 Audit.. 26

Appendix 3 Improved Marketing Mix.. 30

Appendix 4 Customer Loyalty ladder & Customer lifecycle value. 31

Reference.. 32


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TASK 1

AUDIT FINDINGS OF SCANWELL LOGISTICS

WORD COUNT - 835


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St 12924755

The organizations have several customer

Individuals, Adhoc customer, personnel eff

customer groups are corporate clients, S

below,

COOPERATE CLIENTSAre the main profit generating sect

Scanwell Logistics and these customers pr

major share of the business. These clie

strong believers in the value of the

provided by Organization, and will reco(Advocates) them to other clients. It i

important to cherish these clients

This sector of the clients is very valuable

organizations since they do generate a tu

of over USD 40,000.00 to 45,000.00 on a

basis creating a strong profit flow.

SMALL & MEDIUM ENTERPRISESThis customer can be considered as

customers who provide good share to ScLogistics and provide regular business

times a Month or Year and is comfortable

the service provided by them. It is needed at

asses their maximum potential for further

business.

In the case of this segment of clients they

generate a turnover of USD 10,000 to USD15,000 on a monthly basis who to generate to

the profit grid of the organization

INDIVIDUALSThese Clients /Customer do business on a time

to time basis but cannot be guaranteed for

business since they can change for other service

providers. It will be needed to convert to future

business

Form these Customer the turnover they produceis less, it would be at a figure of USD 5000.00 to

USD 8,000.00

Scanwell Logistics Current Ma

PRODUCT - The service is been very stowards the customers and have not

differentiated accurately as per the cusrequirement. Corporate clients do reli

heavily on this service; The organization s

be practicing to give the customer exactly

they need from the 3rd

party Logistics provi

PRICE - The pricing is been decided on thand the profitability that could be gen

PROMOTION The organizations has not beenaggressive on its advertising and promotional

work, were it bases a traditional belief inpromoting business through sales representatives

and through Personal relationship of the

management who have regular visit to these

clients.

PEOPLE The organization staff are wellexperienced but only the senior managements

CORPORATE

CLIENTS


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groups such corporate clients, Small & Medium

ct shipment which is one of cases and tourists. Ho

all & Medium Enterprises and individuals; Detail

or for

vide a

ts are

service

mend s very

to the

rnover

onthly

egular

anwellseveral

ith

the service provided by them. It is n

asses their maximum potential for

business.

In the case of this segment of clie

generate a turnover of USD 10,00015,000 on a monthly basis who to ge

the profit grid of the organization

INDIVIDUALSThese Clients /Customer do business o

to time basis but cannot be guaran

business since they can change for othe

providers. It will be needed to convert

business

Form these Customer the turnover theyis less, it would be at a figure of USD 5

USD 8,000.00

keting Mix in meeting the customer

ecific

been

tomers on

hould

what

ers.

e size

rated

PROMOTION The organizations has aggressive on its advertising and pro

work, were it bases a traditionalpromoting business through sales repres

and through Personal relationship

management who have regular visit

clients.

PEOPLE The organization staffexperienced but only the senior mana

SCANWELL

LOGISTICS

SMALL & MEDIUM

ENTERPRISESINDIVIDUALS


Enterprises,

ever the key

summary as

COOPERATE CLIENTSAre the main profit generating sector for

Scanwell Logistics and these customers provide a

major share of the business. These clients are

strong believers in the value of the service

provided by Organization, and will recommend(Advocates) them to other clients. It is very

important to cherish these clients

This sector of the clients is very valuable to the

organizations since they do generate a turnover

of over USD 40,000.00 to 45,000.00 on a monthly

basis creating a strong profit flow.

SMALL & MEDIUM ENTERPRISESThis customer can be considered as regular

customers who provide good share to ScanwellLogistics and provide regular business several

times a Month or Year and is comfortable with

eded at

further

nts they

to USDerate to

n a time

teed for

r service

o future

produce 00.00 to

needs

PRODUCT - The service is been very specifictowards the customers and have not been

differentiated accurately as per the customerrequirement. Corporate clients do relies on

heavily on this service; The organization should

be practicing to give the customer exactly what

they need from the 3rd

party Logistics providers.

PRICE - The pricing is been decided on the sizeand the profitability that could be generated

ot been

otional

elief inntatives

of the

o these

re well

gements


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from the customer, Hence Corporate clients do

get a attractive rate compared to the other

smaller clients who do get offered with high

rates which leads in losing the customer.

PLACE The organization caters to its customersin Sri Lanka through the four branches and the

warehousing complex that are located in the

region which are close approximately industrial

zone and the City.

have professional qualifications such as CIM,

CIMA and MBA, were the junior level is lacking on

the Professional qualifications; Since the

knowledge on the industries is high the staff is

highly capable in servicing the customers.

PROCESS- have not been differentiated amongthe customer group in an effective way, however

has a basic process of collecting shipment and

processing at customs.

PHYSICAL EVIDENCE the offices of theorganization has been up to standards but the

warehousing complex is been catered to the

customers without the best infrastructure.

Scanwell Logistics CRM in meeting customer needs.CRM is the process of carefully managing

detailed information about individual

customers and all customers at Touch Point

to maximize customer loyalty.

INFLUENCE ON CUSTOMER SATISFACTIONThis is importantly looked at since unsatisfied

customers can always spread negative about the

organization, Hence sales representatives makesure that they do get feedback from the

customer on consignments and ways of

improvement will be based on that. This is

normally done while visitation to the customer

by the representatives or the through phone or

email questionnaire.

CUSTOMER COMPLAINTS

Complains are handled with immediate effect

since customers are satisfied if the problems are

solved quickly, by doing this they will be much

comfortable to give business again.

CUSTOMER RELATIONSHIPThe Importance of the facts that builds great

relationship with the organization since all staffdoes meet with the customers regularly; the staff

can be identified as operational and sales

representatives. By doing this customers are not

only familiar with the senior management but

knowns the middle staff as well personally.

Loyalty scheme the reward that is offered by theorganization to loyal customer is the credit period that

can be offered to the corporate clientele however this needs to be looked at since most of the SME and

individual customers expect a credit period as well.

Scanwell logistics has a verity of logistics services and cross-selling is and has been an advantage due to

the discounted pricing that are offered to the corporate and SME however this has to be improved by

adding more value to the total product.

Sponsors ship of events have attracted by a certain segment of customers, however this has be looked at

a bigger picture if there are to differentiate the organization from the competitors


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TASK 2

REPORT

WORD COUNT : 2268


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TO: MARKETING MANAGER SCANWELL LOGISTICS

FROM: MARKETING EXECUTIVE SCANWELL LOGISTICS

SUBJECT: ANALYSIS OF THE EFFECTIVENESS OF SCANWELL LOGISTICS MARKETING MIX

IN MEETING CUSTOMER NEEDS

DATE: 18TH

FEBRUARY 2012

The segments has been divided accordingly to their power and interest as shown in mendelows

matrix in the appendix 1 on the organizations back ground and as per the illustration. Below it has

been identified as the most powerful and interested customer groups for Scanwell Logistics

Colombo.

1. CORPORATE CLIENTS

2. SMALL & MEDIUM ENTERPRISES (SME)

3. INDIVIDUALS

CORPORATE CLIENTS

This customer base overall brings importance to Scanwell Logistics who have been with the

organization for more than 4-5 years; an effective relationship marketing will be relied heavily in

maintain a good relationship between both parties. This customer base is profitable and loyalty

levels will be high due to the business handled; In terms of issues it will always be discussed and

sorted without any disputes.

IMPACT - Large business generated by this customer base bring majority of the profit from them and

they are more ofInternational recognized brand ; in the other hand due to their brand name in the

market other customer will know that the service provided by Scanwell Logistics is effective and

efficient due to the capabilities in handling tough corporate clients. These customers can be refer

the organization to other customer bring added advantage it can be done via word-of-mouth or

can be opinion leaders.

INFLUENCE This customer base influence with a high levels of buying power and there demand in

meeting their standard requirement by the service provided can be very high; They can even applypressure to organization to obtain certain standards such as ISO 9000. In terms of this clients

pulling out the business will have a great affect and losses toward organizations on turn overs and

profit which eventually can affect the staff with less salaries and having unsatisfied stakeholders.

Therefore the Impact and influence of the corporate clients is high and have great importance.


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SMALL & MEDIUM ENTERPRISES (SME)

This segment of clients who has been doing business with Scanwell Logistics less than 2 years had

generate a average profit for the organization but on the long term these customer can grow to be

corporate client in the future; these customer is mostly of Sri Lankan origin; there is a risk where

the business can be secured by other competitors there for customer satisfaction is very important

to retaining

IMPACT This customer base brings and average profit and Losing these customers puts scanwell

Logistics at a risky position since they will only have to depend on the corporate clients.

INFLUENCE the level of influence will be low due to the profits that they generate and at the same

time these customer can be influence by other service providers.

INDIVIDUALS

These customers are who have been with the organization for less than 1 year and there the

business that they provide is much less however the profits sometimes can be very low since these

are ad hoc customer and do not care about service. These customers bargaining power is less

however there is a great possibility where these customers can move to other competitors.

IMPACT Is low since they do not have the huge volume to have a great demand on Scanwell.

INFLUENCE the influence that they will have the organization will be less; however those moving to

other competitors will be high


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ANALYSIS AND EVALUATION OF SCANWELL LOGSITCS MARKETING MIX

MARKETING MIX MEETING CUSTOMER NEEDS

- POINTS + POINTS

PRODUCT -1PRICE +2

PLACE +3

PROMOTION -2

PEOPLE -2

PROCESS +1

PHYSICAL EVIDENCE +2

+ Points are based on Strengths of the marketing mix elementsPoints are based on weakness of the marketing mix

elements

PRODUCT

The product element describes the bundle of benefits offered to the customer in order to satisfy

the customers needs and wants, however sadly it is been graded -1 although the organizations

offer variety products such as international logistics management, Customs brokerage , local

logistics solutions, warehousing and along with value added services such as packing and labeling.

however efficiencies is a low customer are in needs are of a faster turnaround logistics which has

been provided only in certain products and service hence it is important that the organization looks

into the of these needs to more market oriented and new development on services plays a vital

role in improving customer needs.

PRICE -

The mechanism on the pricing is based on the profit and volumes that can be committed by the

customer mostly customer who have the buying power does get a lower pricing whilst other gets

offered with a average market rate. Corporate clients are give joy of the benefits of attractive rate,

whilst the rest have been catered with a competitive rate.

Since customer has the ability to choose from different rates such air freight, courier or even ocean

freight rates which have been compressed for their convenience, this has been graded as +2


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PLACE -

Currently the customers are services through the offices that are located in the region and the

warehouses been located at close proximately the customers areas, making it easily reachable to

the customers with great convenience. Other means of distribution is been done with the sales

team who visit the customer at their premises at the customers convenience to sell the service that

can be tendered to them and explain the benefits.

Existing Customers will be having easy access where they can walk to the service providers offices

and warehouses at any time since there located nearby.

Therefore all customers have easy access to the service provider and it graded as +3

PROMOTION

The idea behind the promotion aspect is to promote the benefits of the services to the targetmarket and the value that Scanwell Logistics holds.

The organizations beliefs in Relationship marketing in getting business from their corporate clients

and where as Direct Marketing and Word of mouth is the means of obtaining other business.

Since relationship marketing plays an important role the organizations has direct contact with the

decision makers at all time making negotiation much friendlier than been aggressive on the table.

Scanwell Logistics provide seasonal gift hampers to the decision makers and entertaining the

customers with lunches and dinner. To gain influence Scanwell Logistics are involved in CSR

projects. However in terms of media promotion it has never been promoters in a large way whichneeds to be looked at.

PEOPLE

Employee satisfaction is a key a stake holder in the way service is been provided; hence Corporate

clients are catered through the Marketing Mangers or the senior management and the rest of the

customer group by customer service executives and sale coordinates with the clients at all time.

The organization provides

Staff Training to develop skills managing clients Performance salary schemes

This has been graded -2 since its only the senior and top management that cater to the key

customer and even the skills development has not been done for the junior staff which can be

harmful to the product and services.


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PROCESS

This is considered to the way the organization delivers its service to the end customer, hence they

are been advised on the process on the consignment of the shipment at regular intervals due to

this it has been graded as +1

CSR projects conducted by Scanwell Logistics in providing the free education to children affected by

the civil war bring value to customer since they respect the project

PHYSICAL EVIDENCE

As well all know services are intangible and hence physical appearance plays a key role in satisfying

the customer.

The physical evidence of the organization is good hence it is graded as +2, few point as below

Well maintained office complex

Well dressed staff with official attire.

Technological based infrastructure has to be geared to the highest in developing faster

logistics.


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RECOMMENDATION AND ADDING VALUE TO THE RELATIONSHIP THROUGH MARKETING MIX

PRODUCT

The organization to introduce the right relevant service and giving better option with even multiple

choices on logistics solutions with a competitive rate structure. The organization can seek the task

in creating a value to the Brand and upgrade their services using the technology such as the

internet in giving an effective and efficient service. Also in providing the ability to customer to track

the consignments by the use of the website.

Customers will be having great esurience of the organizations since the product offered is at the

best in the market and will not have any hesitations in using the service due to its convenience

factor. Customer will find it much easier to check on their shipment through clicking on the web site

of the service provider

PRICE

The Price determines the customers perceived value towards the value of service hence giving the

customer a very competitive rate or total comprised price. Pricing methods such a Bundle pricing

can be offered to the corporate clients and where as other clients can be offered with Penetrative

or skimming pricing methods. Reliable customers can be offered with credit period for the

business handle. Offering pricing through internet bring great ease to the customer when they are

seeking for rates.

Customers will know that Scanwell Logistics is an honest organization that charges at a veryreasonable price and who is capable in offering credit periods to them; By doing this they will

always promote the organization to other customer who seek logistics solutions which will generate

more profits.

PLACE

In Having Scanwell Logistics offices and warehousing located at strategic locations which are easily

accessible to the customer will is be a great choice on convenience to them in terms of reach

ability. Also by having in-house account managers for the existing customer at the premises of the

customers where they will be able to cater the needs of the customer immediately.

Customers will feel convenient to work with scanwell Logistics due to the easy accessibility.

Availability of customer service executives and Coordinators 24x7 will give a cutting edge against

the competition.


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PROMOTION

Sponsoring of events for the clientele or local clubs, direct mailing and giving User trials to the

existing customers and potential ones will bring many; also advertising electronically (E-flyers)

&newspaper advertisement should be a focus point since these will be direct target to the new

potential customer

Brings Loyalty which will furnish scanwell as a great brand and will build respect for the user trails

that they offer.

PEOPLE

Developing the staff towards a Pro-Active approach in a friendly manner and having the staff to go

through training.

Customer will feel the customer service is at its best and will be comfortable to work with the staffwithout having debates or issues.

PROCESS

Having a standard operation procedure for each customer will create a better understanding

among the employees as they will know proper steps that has to be taken; The use of systems such

as the DTI [Direct trade inputs] makes it easier for customer to view the local logistics situation at

any current time.

By having a good Standard Operations procedure the customer will be handle with great ease from

the service provider and customer will be satisfied since there will not be any hazel in the

consignment.

PHYSICAL

Developing the organization infrastructure in IT, warehousing and transport trucking system and

having GPRS tracking systems where customers will be in a position to track their shipment via

Smart phones or the internet. Giving uniforms to the staff brings a different color to the

organizations and it will help customers to identify the service provider and makes them look

different from other competitors.

Customer will be contented with the new improvements and will see it as additional benefit that will

be useful to them.


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MEASURING THE SUCCESS OF TH MARKETING MIX

MEASURING THROUGH THE INTERNET

With the re-launch of the new website the number of hits on the site can be measured if this turns

to be high that shows that there is a high level of existing and potential customers.

Customers, who log into the website to track their shipment, can be recorded to measure how

many customers make use of the new method and requested for further information.

MEASURING SALES

Tracking sales is not so difficult, this could be check if there had been new business that have been

secure from the corporate clients and to measure the number of consignments that have been

handled of the small & medium enterprises and from the individual customer to see if the level of

repeat booking.

Measuring the Number of enquiries received from advert and ascertain the number of enquiresthat have been converted to sales.

Sales reports of the past can be compared with the with the new reports after the change in the

marketing mix

MEASURING INQUIRY TEST

Online Measuring can be checked through sign ups, downloads of vessel schedules and request

forms through the wed bases system

Offline measuring can be checked through the monitoring of phone calls and request proposals or

even the number ofinitial meeting that have been done with customer.

TRACKING STUDIES

Measuring the service tender by the customer service through feedback forms or Questionnaire or

even through quality rating system of the service. Through this it can be found the attitude of the

staff, Knowledge and

Measuring the success of the marketing mix is an important element of an organization; this

can be done by the process of collecting and analyzing the data, these data can be acquired

from website, sales figures, customer Satisfaction and other methods.


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TASK 3

DISCUSSION PAPER

WORD COUNT 1275


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Discussion Paper on

Analysis of Scanwell Logistics current CRM Program and

its recommendations of improvement

Prepared by : Julian Diasz


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CONCEPT OF RELATIONSHIP MARKETING

CRM is a strategic approach concerned with creating improved shareholder value through the

development of appropriate relationships with key customer and customer segment. CRM unites the

potential of relationship strategies and information technologies to create profitable, long term

relationships with customers and other key stakeholders.CRM provides enhanced opportunities to

use data and information to both understand customers and co-create value with them. This requires

a cross functional integration of processes, people, operations and marketing capabilities that is

enabled through information technology and application Payne and Frow (2005)

Relationship Marketing is an aspect of modern marketing rather than the traditional aspect of

transaction marketing, the differences are between them are shown below

TRANSACTIONAL MARKETING RELATIONSHIP MARKETING

Focuses on Single point of scale

transaction on recruitment of customers

Focuses on business strategy thatseeks long term relationship on

customer retention

Emphasis on maximizing the efficiency andvolume of sales

Adds Value to the customer

Oriented on product features Oriented on product benefits and

system solutions

Short time horizon Long term horizon

Little on customer focus High customer focus

Information is a content of communication

Information is an product ofcommunication

Low contact with Customer High contact with customer

Customer Relationship Lifecycle

As per the illustration on appendix 4 CRL indicates growth of customer with CRM

Awareness The prospect has need or want for the service

Knowledge The prospect passively seeks knowledge about the organization

Consideration The prospect weigh their knowledge to by the product or not

Selection The relationship intensifies as the customer discovers whether performance meet

expectations that determines satisfaction

Loyalty The customer experience consistent product / Service quality and develops strong

affinity towards the organization


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Advocacy The relationship intensified as the customer discovers whether performance meetexpectations that determines satisfaction

DOES CRM HELPS IN THE RETENTION AND LOYALTY OF CUSTOMERS.

YES !!! When CRM is been practiced it bring continuous support and satisfaction to the customer,

Once the customers level of satisfactory develops and to increase they will more up the loyalty

ladder as shown in the appendix 01

Customer Relationship marketing is an approach which emphasizes the counting relationships that

should exist between the organization and its customer; it emphasizes the importance of customer

service and delivering superior service it can help the organization manage customer interaction

more effectively and is a critical factor for an organization in recognizing the long term value of the

potential and current customers

Relationship marketing is rooted in the idea that it is cheaper to retain an existing customer than to

recruit a new one; therefore CRM view on marketing is more profitable compared to transactional

marketing.

ANALYSIS OF SCANWELL LOGISTICS CRM STRATEGIES

CSR Project and sponsoring corporate events

Since customers honor and value the social responsibility, Scanwell Logistics has it CSR project

where they initiate to create an opportunity for quality education for children where families have

been affected by civil war which is done in rural area of the country. Customers are taken for

visitation on the account of the organization and by doing these customers will be loyal and they will

continue in providing business.

Sponsoring of events such as local sport clubs, bring respect since customers who attend the events

and sees that it has been sponsored by Scanwell Logistics will have respect on the organization and

will provide business.

Customer Relationship Manager

CRMs who will be responsible for the key customer, their duties will be most efficient approach in

maintaining and creating relationships with customers to create strong personal bonding with the

clients, by developing a good bond it drives business to a new level of success, since it makes the

organization to identify the actual needs of customer and help them to service in a better way.

The CRMs will always be providing the customers with the services that they have to offer and to

gain maximum volumes from them in growing the business together.


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Regular Surveys

Business success comes from happy and satisfied customers hence by having regular surveys that

provides better understanding on what the customers needs and wants.

Following with customers to check how well their expectations are being met

Checking to ensure that the customers are our best advocators

Providing customers with regular information

Availability of all logistics service.

In taking an active interest in the customers they often see this as a positive expression in long term

commitment to them in building relationships.

Providing Benefits

Scanwell Logistics has good rates in logistics and shipping hence by giving very penetrative prices

to the customers with a over one month credit periods for the corporate clients, which will be a great

deal since customers gets a good pricing and cash flow is at ease since the credit offering; Hence the

termination cost of the service will high customer will not intend to get the service from other

providers.

Employee Training

Taking the organization employees to the customers sites and to educating them with the customers

needs and wants will be an added advantage since customers will know that the organization is

talking business since by educating the employees they will have a pro active approach towards

serving the customers better


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RECOMMENDATIONS OF IMPROVEMENTS THE CRM STRATEGY FOR SCANWELL LOGISTICS

Scanwell Logistics as an organization does not practice CRM to a great extent however by Introduce

and to improving as per the below will bring benefit to the organization.

TECHNOLOGICAL METHOD

Due to the limited time available to complete the process in the service sector using IT based

technology to service the customer such as web based viewing system, Video conferencing whichwill offer convenience to the customer and will reduce the time sent on traveling. Another media

network that can be used is SMS where customer can be constantly updated on there consignments

ImplicationThe initial cost that will have to be bear by the organization will be costly but in the

long run it will be profitable since certain cost can be cut down.

STAFF TARINING

Scanwell Logistics can have training programs for their employees to be more customer oriented andto be pro active at their work, by doing this the customer service levels will increase and customer

satisfaction will be earned.

Implicationinvesting on employee training will bring cost and will be time consuming which can

disrupt the work in progress however in the other hand it will give a better productivity to theorganization from its staff members who will be working in a more efficient manner.

CUSTOMER RELATIONSHIP MANAGERS.

The organization can key identify and develop a CRM who will be involved in creating effective

relationship with customer.

Implicationselecting the right person will be very vital to the organization since if same person

leaves and joins a competitor they will have the advantage of breaking the business since they havedeveloped a good rapport with the customers.

INTRODUCING OF INTERNET BLOG

Enabling customer to post comments about the organization making customer service muck easierwith the customer


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Cost and Benefits

Increase customer life time value

All the above strategies will help in development of customer satisfaction, when customers aresatisfied it will increase the business resulting in higher life time value.

Loyalty Ladder

When customers satisfactory levels are high they would move up the loyalty ladder, refer appendix

no , Thus making them advocates and partners.

Staff Training

Staff training should be educated in replying blogs more professionally and effectively since if staffs

are not in a position to reply the blogs in a proper manner customer can dissatisfied with the levels ofcommunication


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Appendix 1 - The organization back ground

Scanwell Logistics Coombo formed in year 1982 with Its head officeis located in Hong Kong and having 68 offices worldwide; With 4 branches located in

Sri Lanka, initially started as a freight forwarding company and now diversified into

many areas such as General sales agent for Egypt Air, Air Arabia & Cargo Lux;

Subsequently ventured into warehousing & Distribution management, Exports,

Imports, Direct Clearance and Services etc. Now employs more than 300 dynamic Team Members and

offering a comprehensive range of Logistics Packages tailor-made to meet each customers unique

requirements. Whilst developing customer-specific solutions and continuing to expand the services.

BONDED WAREHOUSE Currently Scanwell Logistics operates a Bonded facility of 90,000 Sq.Ft and 20,000

Sq.Ft warehousing. the facility is to cater to suppliers providing raw materials to export oriented

organizations; Through this facility The Importer is able to take deliver with immediate without delays..

FREIGHT MANAGEMENT Scanwell Logistics has 68 offices worldwide catering to international Logistics.

CUSTOM BROKERS Scanwell Logsitcs has the expertise to handle brokerage whether its Air or Sea freight,

transshipment giving the customer the full logistics.

REPACKING & LABELING Repacking & labeling is facilitated for export cargo along with bar coding.

INLAND TRANSPORTATION Reliable and Competitive trucking services is provided with our own fleet and

our contracted transporters who we have build an excellent relationship from the past years.

IMPORT / EXPORT HANDLING Once the production is ready to go the full logistics is handled by Scanwell

Logistics from the point of loading of the consignment to the loading to the vessel or carrier.

Figure 1


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MARKET SHARE OF SCANWELL LOGISTICS COLOM

Figure 2

Scanwell Logistics Colombo faces with an

Competitors have an even share of the

important for Scanwell Logistics Colombo

retaining their currently from the compe

customer.

SCANWELL LOGISTIC COLOMBOS CUSTOMER BAS

Scanwell Logistics has a verity of custo

Importers, Essential importers to the cou

Fig 3 shown below is the indicated volume

Figure 3

FREIGHT LINKS

12%

HELLMAAN

15%

KUEHNE + NAGEL

12%

OTHERS

10%

33000

18000

25

0

500010000

15000

20000

25000

30000

35000

Exporters Essential &

FMCG

Gen

Impo


Page 25 of32

O

aggressive competition in the market as shown i

market segment or greater market of share. Hen

to be more market oriented and to gain new cus

titors who are all the while pitching for business

mer who represents Export oriented organizati

try, Agriculture Exporters, Transshipment cargo a

f cargo that has been handling by Scanwell Logistics

SCANWELL LOGISTICS

17%

EXPO LANKA

19%

AGILITY LOGISTICS

15%

ARKET SHARE

SCANWE

EXPO LA

AGILITY L

FREIGHT

HELLMA

KUEHNE

OTHERS

00

10000

6000 8000

eral

rters

Transhipment Agriculture

Products

Others

CUSTOMER BASE

C


n the Fig 3.

ce it is very

omer whilst

from these

ns, General

d others. In

Colombo.

L LOGISTICS

KA

OGISTICS

LINKS

N

+ NAGEL

ustomer Base


26/32

St 12924755

Stakeholder is a party that has an inter

typical corporation are its investors, e

goes beyond this conventional notion t

government and trade associations.

FIGURE ONE :: FREEMAN STAKE HOLDER

SRI LANKA PORT & AVIATION AUTHORITY Pla

through there channel and decisions they

SHAREHOLDERS - The investors is a key fact

important however on the other hand they

EMPLOYEES & MANAGEMENT Is a major play

and experience of the employees the servic

CREDITORS Due to the large turnaround on

bankers such as Sampath and Union Bank i

draft.

TRADE ASSOCIATES such as Sri Lanka Freightup the standard rates for the market and w

SRI LANKA CUSTOMS They are regulatory b

They have power to halt consignments or o

CUSTOMERS The organizations has many c

great importance.

TRADE ASSOCIATES

SRI LANKA FREIGHT FORWASSOCIATIONS

CREDITORS

SAMPATH / UNION BANK

MERACANTILE INVESTMENTS

COMPITITORS

SRI LANKA PORT &

AVIATION AUTHORITY


Page 26 of32

ppendix 2 Audit

st in an enterprise or project. The primary stake

ployees, customers and suppliers. However, mo

o embrace additional stakeholders such as the

MAP OF SCANWELL LOGISTICS

s a major role in logistics since all the consignmen

ake on pricing can affect the logistics industry.

or since the when it comes to funding their prese

can insert pressure if the profits and low.

er when it comes into the service because without th

e levels will be down.

cash that is needed to fund the operation on a dail

s of great importance since they offer the organizati

orwarding / vessel operating / transporters associathere other are to go by same.

dy who make decisions in the way the processes ar

perations.

ustomer group that help in achieving its goals, henc

SHAREHOLDERS CUSTOMERS

COPERATE ACCOUNTS

SMALL & MEDIUM

ENTERPRISES INDIVIDUAL

EMPLOYEES MANAGEM

SRI LAANKA

CUSTOMS / MERCHASHIPPING , MPORT & EXP

DEPARTMENT

TRANSPORTERS

TRUCKERS /SUPPLIERS

RDER


olders in a

dern theory

community,

ts and move

nce is highly

e knowledge

basis hence

on with over

ions who set

conducted.

e they are of

NT

TORT


27/32


Page 27 of32

COMPETITORS The logistics trade has many players in the market hence Scanwell Logistics has many

competitors such as Freight Links, Expo Lanka, and Agility who will be continuously behind on the customer

base to penetrate and secure business.

FIGURE 02 :: O2. MENDELOWS POWER / INTEREST MATRIX OF SCANWELL LOGISTICS

MINIMAL EFFORT - Trainees will not much have direct contact with the customers since most of the job role

will be back stage and they are temporary staff who will be young will work for short periods just to gain

experience. Customer just as the Ad hoc , Personal effects & courier customers does not have great

importance since this group of customer does not have the volumes and either they are profitable.

KEEP INFORMED - There are few groups that has to be kept informed such as the creditors financial sector

where the organization should be able to maximize the financial support provided by the bankers; Another

group is Sri Lanka customs where there consent should be taken before any proceeding and to be sure that

it is within the customs laws and regulations. Where as in the other hand the company should know what

their Competitors are doing or what they will be doing in the immediate future.

KEEP SATISFIED - Trade associates & Sri Lanka Port & Aviation authority should be kept satisfied since their

decisions could affect the logistics operations. Also we have individual customer who provide a low profit

but can be of importance in the future hence they should be catered and satisfied although they are not

profitable at the moment.

KEEP PLAYER -This is an ample importance since it caters the Shareholders who are the investors and will

expect the best from organization and at the same time can insert pressure. Corporate Clients & Small &

Medium Enterprises are the main profit generators for the organization hence their presence is immense.

Senior Employees & Managers is very important to Organization to achieve its objective since the wealth of

knowledge and experience they carry.

LOW

LOW HIGH

MINIMAL EFFORT KEEP INFORMED

Trainees Employees

Adhoc Customer

Personnel Effect Customer

Courier Customers

Financial Bodies

Competitors

Sri Lanka Customs

KEEP SATISFIED KEY PLAYERS

HIGH

Trade Associates

Sri Lanka port and aviation authority

Individual Customers

Shareholders

Senior Employees and Managers

Corporate Clients

SME

I N T R E S T

P

O

W

E

R
http://thesaurus.com/browse/amplehttp://thesaurus.com/browse/ample


28/32

St 12924755

ACCOUNTSAPPROX TURN OVE

MONTHNo. SHIPMENTS

No. EmployeesINFLUENCE & POWER

COPERATE CLIENTS USD 30,000 100 - 135 500 800

SMALL &MEDIUM

ENTERPRISESUSD 15,000 40 80 100-150

INDIVIDUALS USD 5,000 15 - 30 20 50

COPERATE CLIENTS

The Organization caters to the internatio

exporters who has international presence

for over five years some extending almos

understanding. This segment of customers

60% of their profits hence the influence a

ISO certification and pricing cause of the lar

SMALL & MEDIUM ENTERPRISES

These are client who has been working w

with low prospective but have grown to m

low since they do not have a demand to

customers generates a profit of 30% that b

INDIVIDUALS

These individual customer & companies w

generate profits due to their small size hother service providers. These customer

individual do not have any hold since ther

with the service that they getting. These cu

profitable customer on the long run henc

moving to other competitors

CORPORATE

CLIENTSSMALL &

THREE KE


Page 28 of32

ACCOUNTSR PER

No. SHIPMENTSNo. Employees

INFLUENCE & P

COPERATE CLIENTS 100 - 135 500 800

SMALL &MEDIUM

ENTERPRISES40 80 100-150

INDIVIDUALS 15 - 30 20 50

al logistics & serves to cooperate clients who are

which bring great strength and respect who have b

t to ten years; Due to the long relationship they

can be considered to be Advocate / Supporters. T

d impact is very high due to their demands on stan

ge volume of business that they generate.

ith Organization for a period less than 5 years and

dium enterprise. Their interest levels are High but

insert pressure on the organization However this

uild on to the organizations goals.

o are with less than 20 employees; they cannot be

nce there is a huge possibility where they can alwcan be of future potential to the organization ho

Power and Interest is low. Hence they will have t

stomers do not generate a huge profit but can be a

it is needed to secure these customers without le

SCANWELL LOGISTICS

MEDIUM ENTERPRISES INDIVIDUALS

CUSTOMER GROUP


ACCOUNTSAPPROX TURN OVER PER

MONTHNo. SHIPMENTS

No. Employees OWER

COPERATE CLIENTS USD 30,000 100 - 135 500 800

SMALL &MEDIUM

ENTERPRISESUSD 15,000 40 80 100-150

INDIVIDUALS USD 5,000 15 - 30 20 50

importers &

een serviced

ave a great

ey generate

ards such as

have started

the Power is

segment of

depended to

ays move towever these

be satisfied

otential and

ting them in


29/32


Page 29 of32

SCANWELL LOGISTICS CURRENT MARKETING MIX IN MEETING THE CUSTOMER NEEDS

Product

Offering customer such as the corporate and small / medium customer with a tailored logistics

solutions services to the cooperate level. Basic level service is provided to the rest of the

clientele but which are not specific and does not differ from one to another.

Price Currently offering the best rates in the market through Value-based pricing according to thetype of customer base

PlaceServices are offered with the presence of 68 offices worldwide and 4 branches spread in Sri

Lanka and is representative distribute the services at customers premises

Promotion Currently communicated to the customers via telephone and E-mails.

PeopleEmployees and the management is involved direct with the customers while they are serviced

as per requirement.

Process Meeting customers on initial appointment to gain knowledge of the process.

Physical

Evidence

The presence of the organizations own building with the advance technology systems create a

value to the customers

CUSTOMER RELATIONSHIP MARKETING

Customer relationship management (CRM) is a widely-implemented strategy for managing a companys

interactions with customers, clients and sales prospects. It involves using technology to organize,

automate, and synchronize business processes The overall goals are to find, attract, and win new clients,

nurture and retain those the company

Scanwell logistics over all when considers does not practice CRM at large. However to retain the existing

customer base who generates a profitable revenue to the organizations has to have a good CRM to cater to

the customer needs

TAILOR MADE SOLUTIONS - Creating solutions as for the requirement needed gives much help to the

customer due to the easiness to confronting their logistics needs.

DIRECT CONTACT Creating key account customer service executives where customers are comfortable to

confront them on any situation hence employees catering to the customer requirement directly ensuring a

proactive service

SALES REPRESENTATIVE Representatives regularly visitation which builds the understanding between

customers & sales representatives making it easy to communicate on new product development and issues

that rise from day to day operations.

SENIOR MANAGEMENT INVOLVEMENT with the customer makes them satisfied as for the interest shown by the

organization

TEXT MESSAGES AND EMAIL ALERTS Improving the process by immediately notification to the customer on the

consignment status which is done by the customer service executives even by the use of smart phone

creating a rapid and efficient service.


30/32


Page 30 of32

Appendix 3 Improved Marketing Mix


31/32


Page 31 of32

Appendix 04 Customer Loyalty Ladder & Customer lifetime value

BENEFITS FROM PRACTICING CUSTOMER RELATIONSHIP MARKETING

STRENGTH OF CUSTOMER RELATIONSHIP MARKETING

Provides value to the customer

Emphsis on customer retention

In the long-term customers mayinitiate free word of mouth promotions

bring new business to the organization

In the long term customers are less

likely to switch to competitors making

it more difficult for competitors to

entre

CREATING AND MAINTAINING RELATIONSHIPS

These strategies will result in high level of repeat

booking on logistics services with the organization

and improves communication between the customer

It will costs less to serve long term

customers

Loyal customers will pay a price for the

service tendered.

Easiness in business transactions and

solving issues.


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REFERENCE

Principles of Marketing:; 13th

edition {A south Asian Perspective} :: Philip Kotler |Gary Armstrong | Prafulla

Y.Agnihotri |Ehsan ul Haque

Marketing Management:: 13th Edition {A south Asian Perspective} :: Philip Kotler | Kevin Lane | Abraham

Koshy | Mithileshwar Jha

Professional Certificate in Marketing Stake holder marketing Strategy

www.12manage.com

http://www.rehavapress.com

http://bridge2peace.org

www.scanwelllogistics.com
http://www.12manage.com/http://www.rehavapress.com/http://bridge2peace.org/http://bridge2peace.org/http://www.rehavapress.com/http://www.12manage.com/

Strategy Sm Mar12 2

Documents