Question:
Discuss about the DHL’s Service Alignment And Marketing For Small Fashion Entreprenuers.
The core concept of DHL service is to offer delivery service value through a designed service delivery system to a target market that is need of the service. However developing customer-focused delivery system that is aligned to their needs has a positive impact on customer experience and satisfaction as well as a Company’s profitability. Customer segmentation therefore become vital for identifying customer needs to develop needs oriented service system that satisfactorily offers the most satisfaction to a particular client group (Ozmen, et al. 2014:Hunter et al. 2004). Small businesses are one of the largest growing segments in the world that, owing to their limited resource capabilities choose to include 3PL as a viable alternative for their supply chain needs.
Small fashion firms have experience notable growth and exposure since the advent of E-Commerce. IBISworld (2017) research report shows that online clothing shopping has an annual growth of 12-17 percent creating a rising need for 3PL among many small fashion e-stores in the global market. It is therefore imperative for DHL to appeal this customer segment understanding by proactively communicating the tailor made solutions it offers based o a comprehensive segment understanding of small businesses.
Top among the motivations that drive an SBU to purchase is value addition to the business with revenue increase and reducing cost coming second. In a small business Unit it is established that the owner is the Key purchasing decision maker (Kavak, Tunçel and Özyörük 2015). However several elements influence the purchasing decision of new product. The most influential element is the adoption and confidence level of the product among other business owners in the same field. Notably seeking further information regarding a product is done through conversation with colleagues, vendor representatives, and company websites respectively (TAB Small Business Pulse Survey 2016).
In terms of gaining confidence with a product, Small business Unit Owners evaluate testimonial that attributes other peoples satisfaction with the services offered although they also prefer a trial& error approach where they deliberate on a product offering by using it themselves. However vendor demonstrations play a small role in shedding light on the value proposition being offered (TAB Small Business Pulse Survey 2016). In such a case research shows that most small business operators finding vendor information trustworthy and therefore keep an open mind.
In the fashion industry, the most apparent logistical issues facing both big and small business include delivery performance (efficiency of delivery), flexibility (return policy) and responsiveness (pick up frequency and place), real-time assurance of delivery (tracking of goods to the end consumer) and integrate international trade regulations (Van der Valk and Rozemeijer 2009). While DHL’s offers a wide variety of these factors it is necessary to develop a tailor-made service factor that particularly appeals to these essential factors within the SBU target market. In this respect, offering E-solutions, E-billing, time and day definite service, next-flight out, shipment consolidation services and one stop clearance in a service package would help in developing a seamless supply chain that would unburden small scale business that would unburden them any disconnect on the supply chain end(Coltman, Gattorna and Whiting 2010). Additionally, since small fashion businesses leverage most of their brand image through quality, efficiency and reliability, it is important for DHL to extend after sale services such as track and trace where customers can keep track of their merchandise. In the event there is a delay, a courtesy call to the customer from DHL would go a long way to maintain high professionalism and credibility of a fashion business(Oke and Gopalakrishnan 2009). Such alignments of services to the needs of the small fashion businesses have the potential to yield life-long client which is a trait among small business units.
Customer-centric services are developed mainly by understanding the motivations that drive purchasing decisions within the target market. Consequently a message is developed in an innovative manner to communicate a firms understanding of the consumer’s needs through various media channels. According to Small business pulse (2016) value addition is a top priority in the purchase decision-making. In this case a DHL campaign should revolve around the theme of reliability and ease of doing business.
The main outcome of DHL’s campaign should be to create awareness of oncoming expo for small business entrepreneurs and top of mind positioning among the small business unit base. The message should be ‘joining other business people in using the most reliable 3PL company in the world that care for you”.
Communication should also be conducted on several media channels and event. TV commercials and online marketing offer the best avenues to reach a wide variety of people. Social media integrates visual, audio and text messaging service at a relatively low cost thus increasing degree of viewership as well as word of mouth(Mangold and Faulds 2009). Hash tags, YouTube videos and an event attendance page of face book have the capability of going viral, which would surpass the expectations of DHL’s campaign.
DHL should develop a TV advertisement that integrate testimonials from other small business owners- especially in the young and old fashion using the service, highlighting their experiences and confidence in the service products being offered. A celebrity endorsement of a known celebrity in the small business realm would work to incentivize SBU owners to attend the event (Bolan and Williams 2008). DHL should also highlight their role as an industry leader anchored on in-depth understanding of their customers. The advert should highlight an oncoming event expo in which all small business entrepreneurs are invited. Replicating the same message on internet marketing maximizes on awareness reach while also creating interest through an aggressive top of mind agenda (Bolan and Williams 2008). It is imperative that all information sources should trace back to the company website, which add weight to the credibility of the campaign information. Additionally it would prompt potential customers wishing to in-depth information regarding DHL to easily access it through a link of the webpage.
Event marketing is an essential marketing tool that brings together DHL’s personnel to the potential customers. An exposition would be highly suit for DHL to highlight their variety of services as well as the tailor-made service package dedicated to the small business entrepreneurs. The event setup should involve a cross- functionality of DHL’s business with top vendors ready to walk the potential customers through their value proposition. Secondly vendors need to aggressively engage with attendees at the event to ensure to maximize on influencing buyer purchase process. Finally the event should also have a subscription desk where customers can sign up for DHL service packages. The Exposition event should be replicated all over the major cities where there is potential to subscribe many small scale fashion businesses. This can be aided by conducting a demographic market research on small scale fashion business around the world.
Conclusion
Notably, with the growth of E-commerce, DHL is set to significant growth in 3PL service delivery needs- especially among small businesses in the fashion industry. However it is incumbent upon DHL to realign strategic services to the needs of small scale fashion producers so as to maximize on service value and consequently on profitability. Additionally marketing their services to the target market ensure that DHL curves out a significant share of the customer base. This should be done through an aggressive campaign and events marketing revolving around its reliable service offering and care for small business Owners’ interests.
References
Coltman, T., Gattorna, J. and Whiting, S., 2010. Realigning service operations strategy at DHL express. Interfaces, 40(3), pp.175-183.
Oke, A. and Gopalakrishnan, M., 2009. Managing disruptions in supply chains: A case study of a retail supply chain. International journal of production economics, 118(1), pp.168-174.
Bolan, P. and Williams, L., 2008. The role of image in service promotion: focusing on the influence of film on consumer choice within tourism. International Journal of Consumer Studies, 32(4), pp.382-390.
Kavak, B., Tunçel, N. and Özyörük, H.E., 2015. Do Small and Medium Sized Enterprises Have Their Unique Buying Behavior Variables?–A Qualitative Approach. International Journal of Trade, Economics and Finance, 6(6), p.283.
Mangold, W.G. and Faulds, D.J., 2009. Social media: The new hybrid element of the promotion mix. Business horizons, 52(4), pp.357-365.
Hunter, L.M., Kasouf, C.J., Celuch, K.G. and Curry, K.A., 2004. A classification of business-to-business buying decisions: risk importance and probability as a framework for e-business benefits. Industrial marketing management, 33(2), pp.145-154.
Ozmen, E.S., Öner, M.A., Khosrowshahi, F. and Underwood, J., 2014. SMEs’ Purchasing Habits: A Procurement Maturity Model for Stakeholders. SAGE Open, 4(2), p.2158244014536405.
Van der Valk, W. and Rozemeijer, F., 2009. Buying business services: towards a structured service purchasing process. Journal of Services Marketing, 23(1), pp.3-10.
Cyr, A., Meier, O. and Pacitto, J.C., 2011. “Method in their madness”: understanding the behaviour of VSE owner-managers. Journal of small business and enterprise development, 18(2), pp.331-351.
TAB Small Business Pulse Survey 2016, The Alternative Board, viewed 5 October 2017, <https://www.thealternativeboard.com/wp-content/uploads/2016/02/Business-Pulse-Survey-Business-Owner-Buying-Decisions.pdf>.
IBISWorld 2017, IBIS World, viewed 6 October 2017, <https://www.ibisworld.com/industry-trends/specialized-market-research-reports/consumer-goods-services/apparel-accessories-stores/clothing-boutiques.html>.
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