UK ROAD HAULAGE INDUSTRY
Objectives 7 2. Target Market 7 2. Industry Growth 8 3. Market Segmentation and Target 10 3. Local Market Producers 10 3. It has a low average and earnings before income and taxes and as well the return on the shareholders. However, larger brands outperformed the rest of the companies. This implies that branding and advertising could have an impact on the industry and specific organizational growth. The marketing strategy is mostly the traditional methods, and thus there is a need to embrace the modern online marketing. It will enhance the brand visibility and drive the sales and as well profitability. tonnes operating in the UK (Rha. uk. net, 2018). The hauling industry is an indication that it is one of the most important sectors of the economy. A notable characteristic of the industry is the fact that it is highly competitive owing to the low barriers to entry and relatively lower initial capital.
Little efforts are made to reach out to new customers and position the company as an ideal choice owing to the vast experience in the operations and the effectiveness in the delivery of goods to their destinations. This paper will explore the social media marketing activities and demonstrate why it is an important tool that has been overlooked in the organizational marketing strategy (GBP), 2018). The analysis will also feature a set of recommendations that will allow the company to harness all the available opportunities. The overall aim of this marketing plan is first to identify the gaps in the marketing strategies and device strategies that will allow the company to improve its marketing efforts in the local market and as well as the international market.
In particular, the report will focus on the online marketing strategy. In the quest to cab the impacts of competition on the company profitability, most of the efforts are geared towards cost leadership and innovation. These include some cost strategies that aim to reduce the cost in various operational departments such as the management, routes, shared delivery resources, and lowering the costs in the central functions. In the innovation, Royal Mail has adopted technology as a key driver of the operations. The company invested in data management software, labeling, and tracking services among others to boost the efficiency and customer loyalty. Other operational strategy includes the creation of a dedicated and motivated workforce that strives to improve the customer experience. The transport and logistics industry is one of the largest industries in the UK.
The industry has seen considerable growth in the recent years. However, the rising cost has seen a decline in the profit margins despite the growth in the revenue. As at 2016, the overall market was valued at €2. trillion with variations in various sectors. It is important to note that there exist significant variations across the segments and as well on individual companies. The top 10 T&L companies per segment significantly outperformed the overall market with an average revenue growth at 37% as compared to the industry average at 22%. The CARG was at 4. as compared to the industry average. The EBIT was higher in the same period by 18% in the period under review in the period under consideration (Consultancy. in the period under review.
The return on the shareholders was within the overall average at 11. slightly lower than the other major sectors average at 12%. The pharmaceutical industry outperformed everyone with a whopping 60. Consultancy. The target market, in this case, is the local market producers who transport raw materials to the industries and also the finished goods to the markets both locally and also in the international market. The second target market is the global organizations that import goods into the country and as well in other countries. The overall aim is to get their business at the local level and as well in other territories to facilitate the inland movement even in the neighboring countries. Therefore, in this case, the target segment is the above two broad markets.
Since Royal Mail is a large corporation, it has invested in assets dedicated to meeting the needs of the specific clients. In the quest for expansion, the focus should be on a cost-effective strategy that will enhance the brand visibility and reach as many customers as possible. In this case, online marketing comes in handy as an ideal marketing method that will meet the above needs. Target Market Segment Strategy The initial strategy will be to enhance the brand in the local market and as well in the international market. Since the company has running operations in the country, the focus will be to expand the customer base and also seek to secure the cross-border contracts especially for businesses with cross-border operations.
The brand enhancement will play a critical role in ensuring that such efforts are successful. Therefore, the marketing strategy should target the branding efforts to meet the set goals and objectives of increasing the revenue and profits within the industry. Distribution Channels In the local operations, the company will focus on increasing the sales effort by offering incentives to the potential clients. This may include promotional packages that will target to gain long-term contracts from other industry players. In an example, the company can lock in 1-3 years contracts with industry players by promising lower rates and reliability in the delivery of the services. Such contracts will increase the scale of trade and thus lead to the economies of scale. The industry has many operators and limited barriers to entry.
Thus, many players are driving the profit margins low and might drive inefficient players out of the business. There are limited available opportunities and expansion will mostly rely on the geographical expansion. Thus, Royal Mail should seek to venture in other areas as a means to increase the trade volumes. The industry profitability is on the decline owing to competition. Thus, deliberate efforts must be made to make the brand more visible and as well increase the volume of trade. In the modern era, information and communication technology has opened up new avenues that can be explored to market the company products. These include internet adverts in the company website and as well through the social media. Thus companies should strive to make their brands visible across all platforms (Kirtiş and Karahan, 2011).
The next sub-section will explore the use of online marketing in the UK haulage industry. The limitation of all these methods is that they have a limited geographical coverage and only reach a small targeted population. For example, an advert on a magazine will only reach the population that has a subscription in the magazine. This limits the opportunity for growth as the numbers of people aware of the products are limited. The next section will explore online marketing as an alternative to the traditional marketing methods. Online marketing refers to any tool, strategy, or method that gets the company name to the public through the internet. It is effective in following up the potential leads as information is saved in the system and as well assist in articulating the marketing strategy.
It facilitates instant transaction and execution of the data and also allows diversification to spur growth. The internet marketing allows customization of responses and as well instant feedback that makes it easier to determine if a client is serious or not. Thus, it is an ideal tool that will assist the UK haulage industry to increase its competitive edge (Tiago and Veríssimo, 2014). Individual companies such as Royal Mail should strive to embrace this opportunity in the effort to grow their sales volumes. This will allow the brand to be visible to potential customers thus enhancing the brand visibility. Conclusion The UK haulage industry is one of the largest industries in the UK. In the recent years, the industry is on a moderate growth.
The industry is directly affected by the nature of the economy, gases prices, and other factors of production. It has a lower profit margin and returns on shareholders as compared to other sectors. Available at: https://www. consultancy. uk/news/12890/international-transport-and-logistics-market-grows-to-27-trillion [Accessed 8 Jun. GBP), M. Top logistics companies in the UK, by market value 2015 | Statistic. net. Current Top Industry Issues | RHA Road Haulage Association. online] Available at: https://www. rha. uk. Boston: Pearson. Tiago, M. and Veríssimo, J. Digital marketing and social media: Why bother?. Business Horizons, 57(6), pp.
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