The document discusses the global and Indian express delivery markets. In India, the market is growing at 20% annually and is fueled by several sectors. The market is highly fragmented with over 2,500 players, with the organized sector accounting for 45% and the unorganized sector 30%. The major global players like DHL, FedEx, TNT and UPS have a presence in India and focus on different market segments. For TNT to gain market share in India, it needs to establish itself as a dependable delivery provider, promote its key features of safety, security and speed, and connect itself to India by highlighting its reach and delivery capabilities.

1. TNT
Bhuvan Thaker
March 2007
SAATCHI & SAATCHI
DIRECT

2. World Market
Overview
• USA:
o Saturated Market.
o UPS & FedEx are leaders with
combined MS of 75%
• Europe:
o Highly Competitive & Mature
Market.
o DHL & TNT market leader with
combined MS of 55%
• Asia: (China, India)
o New growth driver for the
express companies
o Growth Market (for next 10yrs)
SAATCHI & SAATCHI
DIRECT

3. Indian Market:
Action is just beginning
SAATCHI & SAATCHI
DIRECT

4. India Market
Overview
• India's courier industry stands at 7100Cr and
is expecting growth of 20% YonY
• Sectors fueling the growth of this industry-
Retail, Banking & Finance, Pharma,
Manufacturing, Aviation, and Telecom.
Why India?
• India an emerging economy, expected to
grow @ 7.5%.
• Next to China, India the growth driver for
MNC express companies.
SAATCHI & SAATCHI
DIRECT

5. Market Share
• Highly fragmented industry
with more than 2500 express
players.
• Organized market stands at
45%
• Unorganised Market accounts
45%
30% 25% to 30%, which consist of
regional courier companies
• IPS (Indian postal service with
25% MS)
Source: Credit Analysis & Research and Edelweiss Research SAATCHI & SAATCHI
study DIRECT

6. Cont//
Organised Market:
• Key Indian Players:
60% Blue Dart, DTDC,
Gati, SafeXpress,
FirstFlight and
Overnite Express.
12%
10% 6% • MNCs:
DHL, FedEx,
TNT and UPS
38% Blue Dart
Source: DHL Annual Report SAATCHI & SAATCHI
DIRECT

7. Key Parameters that define success
levels in the industry.
• Network: No of fleet, depots or offices and No of
workforce.
• Technology: Real-time shipment tracking, Real-
time updation of shipment details, E-commerce
and Mobile Solutions, Latest software and
technology, Real-time CRM solutions.
• Manpower Quality: Educated and qualified staff,
Fast and Reliable, Learning and Development of
the workforce.
• Product Innovation: Customisation of product or
service for the target segment or identify new
market. (special service)
• Value for Money: Managing Expectation
(effective CRM, advertising, and promotions)
• Trust: Perceived Brand Value
SAATCHI & SAATCHI
DIRECT

8. Customer
SAATCHI & SAATCHI
DIRECT

9. They are? – Anyone who wants to
send documents and parcels.
Basic features expected from
a courier company
• Speed
• Safety
• Security
• Efficiency
Then- How do brands differentiate?
SAATCHI & SAATCHI
DIRECT

10. Marketplace
SAATCHI & SAATCHI
DIRECT

11. Segmenting,
where speed, efficiency
and safety is priority
SAATCHI & SAATCHI
DIRECT

12. General Services
• SME (verticals)
o Biomedical labs and analysis centers, Law firms,
Pharmaceutical distributors, Publishing firms, Production
houses, Travel agencies, Commodity goods exporters,
Fashion and lifestyle companies, Art galleries
• Financial Institutions & Services
(Mutual funds, Insurance, Banks)
• E-Commerce Companies
o E.g. makemytrip.com, ebay.co.in etc…
Supply Chain Solutions
• FMCG, White goods and electronic hardware
manufacturers, Textile manufacturers, Retailers,
Automotive, Life science and Healthcare companies
SAATCHI & SAATCHI
DIRECT

13. Segmenting,
where safety and security is priority
Special Industry
• Aerospace components,
Heavy industry and
Infrastructure equipment
manufacturers.
SAATCHI & SAATCHI
DIRECT

14. Where is
Competition Focusing?
SAATCHI & SAATCHI
DIRECT

15. DHL + Blue Dart: DHL strategic focus
• Primary: Export & Import market (Asia and Europe)
• Secondary: Domestic Air & Road network (Blue dart)
FedEx + Prakash Air freight: FedEx strategic focus
• Primary: Export & Import market (USA and Asia)
• Secondary: Domestic Air network (Pakash air freight)
TNT + Speedage: TNT strategic focus
• Primary: Strengthen domestic road network (Speedage)
• Secondary: Export & Import market (Asia and Europe)
UPS + Jet Air: UPS strategic focus
• Primary: Strengthen domestic air network (Jet air)
• Secondary: Export & Import market (USA and Asia)
(*Gati adopting UPS business model)
(If you look closely UPS and TNT’s strategic focus is same, they should probably work together as a JV in India)
SAATCHI & SAATCHI
DIRECT

16. Product priority
Products DHL FedEx TNT UPS
Day definite services (Next day & Same day)
International P P P
Domestic P
Time definite services (9:00AM; 12:00PM)
International
Domestic P P P P
Special Service (new products) (RG) P P P P
E-Commerce Solution
Future Growth drivers
Supply Chain Solution
P: Priority
SAATCHI & SAATCHI
DIRECT

17. Brand Communication
Perspective - FedEx, UPS, DHL
Understanding
Competition
SAATCHI & SAATCHI
DIRECT

18. How do brands differentiate?
SAATCHI & SAATCHI
DIRECT

19. Positioning/Differentiator
• Buy me because I am
fast and efficient.
• Because I am FedEx
(strong brand equity)
"Relax, it's FedEx"
Intangible: Have no FEAR when
FedEx is here
SAATCHI & SAATCHI
DIRECT

20. • Buy me because I have
superior technology.
• Because i have one
stop solution for all
you postal and
“Delivers More” business stationery
needs.
Intangible: PROTECT. With UPS NO
WORRY (secure, shield)
SAATCHI & SAATCHI
DIRECT

21. • Buy me because i am
fast, reliable, efficient,
and can go any length
to deliver your parcels.
“All the way"
Intangible: DHL gives
Peace of Mind
SAATCHI & SAATCHI
DIRECT

22. Any differentiation?
Not really, everyone saying the
same thing in different context.
But DHL connects better.
(Peace of Mind)
How can TNT connect better
than DHL?
SAATCHI & SAATCHI
DIRECT

23. What is TNT ?
• Is it just a
“Express Service Provider”
Who talks to…
Administration department of the
Company.
Or
SAATCHI & SAATCHI
DIRECT

24. Cont//
• Is it a
“Business Solution Provider”
(an integral part of any business)
Who talks to…
Decision makers. (CFO, CEO, Owner)
SAATCHI & SAATCHI
DIRECT

25. How can TNT
connect better ?
SAATCHI & SAATCHI
DIRECT

26. Cont//
• What is TNT basically doing?
Delivering documents and parcels
for people, who wants TNT to deliver it fast,
safely and in the most efficient & secure
way.
Ask, Why do they want TNT to deliver
it this way? (to achieve or gain WHAT ?)
Now…
SAATCHI & SAATCHI
DIRECT

27. Cont//
What is TNT basically doing?
It is delivering HOPE, HAPPINESS,
SUCCESS…
There is a DREAM attached
to every document or parcel sent.
SAATCHI & SAATCHI
DIRECT

28. Buy me because i know
how important that
parcel is, and what it
means to you.
“it’s our business to deliver yours”
Intangible: We help fulfill your DREAM
SAATCHI & SAATCHI
DIRECT

29. Flash Back
SAATCHI & SAATCHI
DIRECT

30. • DHL has 60% MS, way ahead
of any competitor.
• TNT has only 12% MS, and
FedEx, UPS, is fast catching
up.
SAATCHI & SAATCHI
DIRECT

31. Way ahead
SAATCHI & SAATCHI
DIRECT

32. to gain
mind share
SAATCHI & SAATCHI
DIRECT

33. How
1.Introduce TNT as a
dependable service provider
2.Promote key features safety,
Diversity security and speed; talk
dependability
3.Finally connect TNT with
India; talk reach and delivery
India = Diversity = TNT
SAATCHI & SAATCHI
DIRECT

34. to gain control
How?
• Strengthen distribution network,
Infrastructure, and manpower.
• Focus on product development
and technology
• Increase promotional activities
significantly
SAATCHI & SAATCHI
DIRECT

35. Communication and Creative Strategy to be discussed as
we move forward.
SAATCHI & SAATCHI
DIRECT

36. Thank You
SAATCHI & SAATCHI
DIRECT