Redefining the DHL Brand

1. Redefining the DHL Brand By: Joshua R. Beyerlein To : Avinash Malshe, Ph.D. and Brand Management Class Date: 5/6/2009

2. Preview • DHL Background • Situational Analysis • Repositioning of the DHL Express Brand

7. The Situation • 2008 - DHL Express Worldwide had around a $3 billion profit worldwide • DHL Express USA was losing $5 million a day • Operational costs were two times it’s competitors

8. Restructure • DHL Express moves from 40,000 employees in the United States to 4,000 employees • Company moves back to an international only carrier • Over $10 billion in sunk cost after the merger of Airborne Express • Promised customers and employees you would not exit the United States domestic business • Brand loyalty and employee moral is at an all time low

9. SWAT Analysis

10. SWAT Analysis Continued

11. Situational Analysis (Porter’s Five Forces) • 1.) Risk of entry by potential competitors • High barrier to entry cost • 2.) Intensity of rivalry among established companies • Two strong U.S. competitors FedEx and UPS • 3.) Bargaining power of suppliers • Controllable even the largest cost fuel • 4.) Bargaining power of buyers • Strong, but controllable as DHL has been able to add surcharges and annual rate increases • 5.) Closeness of substitutes • Air vs. Ocean carriage (2-4 days vs. 6 weeks) • JIT environment with very little inventory

12. Recreating the DHL Brand • Product – The Company, it’s employee’s and the DHL culture • Kept 4,000 of the best employees • Everyone needs to sell • Incentives around revenue growth • Proactive responsive company culture • Empowerment of front line employees • Proactive transit time guarantee • Seamless and easy to use • Company drivers versus independent contractors Our text states, “The FedEx brand has identified that the delivery person who comes to pick up the sealed envelopes or delivers them is the key personality in the FedEx experience for companies.”

13. Recreating the DHL Brand • Promotion – Advancing the brand awareness of DHL Express • Small Marketing budget • Trade show concept • Team up with US Commercial Trade Organization or International Compliance Association • Cost around $25,000 could hit 100 markets at a minimal cost of $250,000

14. Rebranding the DHL Brand

15. Rebranding the DHL Brand Still in America Still #1 in the World

16. Recreating the DHL Brand • Price – What can we charge for our service? • Reduced cost structure enough that we can discount heavily and make money • In today’s economy need to offer an economic savings • We currently can not charge a premium

17. Control Measures • Operations • Service guarantee comes out of local operations budget • Customer Service • Customer service held accountable for resolution of issues • Promotion • Measure revenue growth in markets that have had DHL Road Show • Also measure brand awareness and customer satisfaction with small focus groups

18. Conclusion • DHL Express will not leave the United States • Largest economy in the world and over 55% of all transportation decisions are made I n the U.S. • DHL is a strong brand everywhere else in the world • United Kingdoms leading business brands – 2009 • Culture change needed to give customers a true transportation experience

19. Conclusion • DHL Background • Situational analysis • Repositioning of the DHL Express brand