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End-User Marketing: A Yantian Story

End-User Marketing: A Yantian Story. Shenzhen, China October 1?, 2011 Alan Au. Contractual Relationship. Traditional Model: We only work with those who have direct contract with us. Terminal. Carrier. Cargo Owner. Contract. Contract. How Idea was Cooked. 1994:

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End-User Marketing: A Yantian Story

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  1. End-User Marketing: A Yantian Story Shenzhen, China October 1?, 2011 Alan Au

  2. Contractual Relationship Traditional Model: We only work with those who have direct contract with us Terminal Carrier Cargo Owner Contract Contract

  3. How Idea was Cooked • 1994: • Apr: Marketing and sales work to 20 global carriers began • July: 1 ship berthed at Yantian • Aug: All 20 global carriers gave us the same answer: “We can’t come to Yantian because our clients don’t want to come.” • Sept one Friday morning (typhoon 3) during a meeting: Mr NF Liu, Deputy GM 1st said: “We should go after the cargo owners.”

  4. From Idea to Actions • End 1994: only 15,000 teu achieved. • We either to find end-users or find a New Job • Feb 1995: Chartered 3 buses to take End-Users to visit Yantian • Beginning May 1995: Gave end-user to test-use Yantian by a feeder shuttle between Yantian and Hong Kong • WalMart, Mattel, Hasbro, Toy’s R us were early users for their CY or Factory-Load containers • 1995: Yantian just broke 100,000 teu mark

  5. 2nd Level Action: Go to Headquarters • 1996: • 1Q: End-Users Hong Kong head recommended us to go to USA to sell to Logistics Heads of their head-quarters • May: Travelled 10 cities in 2 weeks in USA with 30 kgs of materials • Summer 1996: • Carriers began to ask info and quote of using Yantian • Few carriers complained: Don’t touch my girlfriend

  6. 2nd Level - 1997 • Feb 1997: Assisted Toy’s R Us to move their consolidation warehouse to Yantian area. TRU drew Evergreen, Hyundai and Yang Ming • Feb 1997: Senior Executives from WalMart, Bentonville first visited Yantian with OOCL • Headquarter executives from Target, Sears, JC Penny, Ikea, B&Q, Carrefour, DHL, Kuehne & Negal etc visited YICT

  7. Gaining the Momentum • 1997: • Summer: Target, Sears etc began use of Yantian • Sept: Nike executive from Beaverton visited and Started CY movement Oct • Sept/Oct: 1st Trip to Europe: • Dec: Nike decided to move their USA consolidation cargo (CFS) to Yantian • Adidas followed

  8. Start-Up Actions • Worked with vendors (factories) of End-Users – organized Vendors’ Meeting with Wal-Mart, Sear, Toy’s R Us, Nike and Adidas etc. • Solve start-up problems of vendors: Customs • Brought major vendors to meet with Customs • Customs arrange factory visit by their own officer

  9. Today Yantian • Dominates USA market : 75%+ market share export cargo to USA. • 90%+ market share to USA West Coast • 60% market share to Europe

  10. Carrier’s complaint: Don’t Touch My Girlfriend • Terminal is part of Carrier’s service package to Cargo Owner. • Vessel Space • Price (ocean freight) • Equipment Availability • Export Terminal: Empty delivery, Export Box receiving (service to truck, barge & train etc) and Closing time etc • Import Terminal: Terminal congestion, terminal IT efficient, service to truck, barge & train etc.

  11. Don’t Touch My Girlfriend • Terminal is part of carrier’s family member. Terminal can make your girl friend love you more

  12. Thank you!

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