DHL Marketing Research

Document Type:Research Paper

Subject Area:Marketing

Document 1

DHL provides logistics solutions that cover vast needs. The mission of the company is to simplify customers’ lives and contributing positively to the world. The brand has experienced rapid growth from 2014 where it had a brand value of $5,084 to a brand value of $5,708 in 2016 before reaching a stagnation stage 2016-2017. The DHL group serves in more than 50 countries and territories around the world. In its Strategy 2020, the DHL Group believes that technology is a key driver in the logistics business. The company operates in a mixture of low value and high value items, which gives the company its unique position in the market (Deustche Post DHL Group, 2017). DHL delivers cargo and parcels in Germany thus serving a domestic market, as well as cross border market where DHL has created a Niche for itself (Deustche Post DHL Group, 2017).

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In the past, the strategy of the company has been based on attractive growth in the company’s major market segments. For instance the German Parcel segment has a growth prospect of 5-7% in 2011-2020 (Deustche Post DHL Group, 2017). Additionally, the combination of both domestic and international parcel services is expected to grow at 8% (Deustche Post DHL Group, 2017). Tiwari (2010) further notes that marketers and management of an organization have to understand how to effectively utilize equity to generate value. It is no doubt that the management and the marketing Division at DHL needs to take that lesson in brand value growth. Understanding brand value could be the Key towards improving DHL’s current market position. Despite having a leading market share, DHL still suffers from low brand value which is important for competitiveness.

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Brand value is determined by the willingness of the customers to pay extra or how the market connects stories, relationships, memories and expectations of one brand over another (Tiwari, 2010). d). Consequentially, DHL needs to be proactive in adapting to these changing forces. PWC further notes that the disrupting forces that will affect the Logistics industry include: new entrants into the industry, technological advancements, new ways of competing, and changes in customer needs and expectations. The different implications will affect players in the industry differently (PWC, n. d). However, brand equity is an important aspect that conceptualizes the unique relationships and bonds between a firm and its stakeholders (Christodoulides, & De Chernatony, 2010). On that note, DHL will need to work more on its brand equity by strengthening its relationship with the stakeholders who include customers and investors to create brand equity which is important for determining brand value.

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Target revenues to increase brand value The revenues of a company are affected by the marketing mix of its competitors as well as its own (Ailawadi, Lehmann, & Neslin, 2003). Brand value affects revenues directly through customer choice and indirectly through enhanced marketing efforts that shield the company from competition (Ailawadi, Lehmann, & Neslin, 2003). On that note, DHL should focus more increasing its revenues, which is a key driver of the brand value. Consumer-based brand equity conceptualization and measurement: A literature review. International journal of research in marketing, 52(1), 43-66. Ambler, T. (2003) Marketing and the Bottom Line: Creating the Measures of Success, Financial Times/Prentice Hall, London. Hoeffler, S. Revenue premium as an outcome measure of brand equity. Journal of Marketing, 67(4), 1-17. Jones, R. Finding sources of brand value: Developing a stakeholder model of brand equity.

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