The marketing plan is related to the business operations of Company X, which is a newly established organization in the international delivery industry. The company plans to follow the business model which connects the parcel senders and travelers with each other to manage the delivery of packages to Nigeria, Ghana and South Africa. The company will require basic information from the parcel sender and traveler and after verification of the given information, the parcel delivery will be finalized. The situation analysis has been conducted to identify the forces that can be a source of benefit for the company as well as identification of those factors in the external environment that can reduce the profitability of the company. Moreover, STP analysis has been conducted which indicates that the company needs to focus on customers seeking a low cost parcel delivery option with good quality service. The marketing plan for Company X has also been outlined, using the 7P’s of marketing mix.

1. Company Overview

The company Project X is a newly established company that was founded in March 2016 and its headquarters are based on London. The key purpose of this business idea is to offer a unique means of parcel delivery to the senders, which allows the travelers to utilize their unused luggage space. The travelers can in this way sell the extra space by becoming a part of the parcel delivery system. It is based on the theme of connecting international air travelers with the people who intend to send a parcel to their respective destinations. The destinations that are included in the current scope of parcel delivery operations are Ghana, Nigeria and South Africa. The management intends to expand the scope of operations and extend the parcel delivery services to other regions in Africa as well. The parcel delivery service will be made available through online platform such as website and mobile based application which allows the senders and travelers to connect with each other.

2. Business Model

The business model uses online platform for connecting the parcel senders and travelers. The senders have to register and provide basic information and provide accurate information pertaining to the nature of items included in the parcel, the weight and dimensions of the package. Once the registration is completed, the personnel of Company X identify the travelers who have the luggage capacity and destination matching the parcel sender’s requirements.

In case of travelers, they are required to register at the company website and provide basic information as well as offer information about the travel date and destination. Moreover, the travelers also have to mention the luggage space they can offer for parcel senders. The employees at Company X conduct verification of the personal and travel details provided by the traveler. When the sender issues payment to the company, the employees initiate contact between the sender and traveler. Once the package is delivered at the desired location, the company issues the agreed payment to the traveler.

3. Situation Analysis

The situation analysis for Company X will be carried out using SWOT analysis, PESTLE analysis and Porter’s five forces model.

3.1 SWOT Analysis

The SWOT analysis provides insight into the strengths and weaknesses of the company, as well as helps to understand the risks and growth prospects in the external environment. The SWOT analysis for company X is presented as follows:

Strengths

• One of the main strengths of the company is the unique business idea which gives it a first mover advantage in the international delivery industry. There are numerous courier companies, but Company X is the first organization to develop a concrete business plan of connecting the senders with travelers for delivery of parcel to different regions.
• The service charges offered to the parcel senders are less than other courier companies, therefore serving as a point of appeal for the potential customers.
• Since Company X is not hiring employees to deliver parcel like the traditional courier set up, the operational cost is lower for the organization.

Weaknesses

• Company X is a startup company and it will take time to establish in the international delivery industry. The competitive pressure may be difficult to deal with, given the fact that the business is in initial stage of operations.
• The management doesn’t have the degree of expertise possessed by other delivery companies that have been operating in the international delivery industry over the years.
• Being a new entrant can lead to obstacles such as low brand awareness among the target market, and low willingness of the potential customers to avail the service.

Threats

• The business idea may be copied by other organizations who start following similar business model for delivery of parcels. Moreover, new companies may emerge offering similar services to the customers. This will increase the competition for the company and possibly result in a decrease in its market share and profitability.
• Company X may not be able to offer similar level of efficiency of parcel delivery service as the traditional courier companies. Since the travelers are not necessarily equipped with the experience of parcel delivery, the company may not be able to manage the process efficiently.

Opportunities

• Technological advancements can help Company X to bring changes in its operations by integrating up-to-date technology in management of online operations.
• Consumers are seeking quality parcel delivery services which also offers them affordable service rates. Company X can fulfill this demand and take benefit of this existing opportunity.

3.2 PESTLE Analysis

As a macro-environment analytical tool, PESTLE analysis comprises different forces from the external environment which can affect the decisions made by the management (Cheverton, 2005). The following section presents PESTLE analysis for the international delivery industry.

Political

The political climate in UK and Africa holds relevance for the company. In order to manage the parcel delivery operations efficiently, political stability is a necessity. The political stability drives growth of international delivery service. Since the efficient international parcel delivery process is primarily dependent on aviation industry, political turmoil could harm the aviation operations, thus negatively effecting the delivery system. On the other hand, political strength of a region reduces the risk associated with national volatility, enabling the businesses to carry out their operations without any disruption. The political environment in UK reflects a significant degree of stability, suggesting that Company X is likely to have a stable environment to operate in the UK. However, a similar level of political stability is not evident in case of African regions. Some countries in Africa have a comparatively higher level of stability such as South Africa and Ghana. On the other hand some African countries such as Nigeria depict frequent occurrence of events that damage political stability of the region (Mark & Nwaiwu, 2015). Company X may have to deal with a difficult political climate while managing its parcel delivery operations in African countries. The number of people traveling to these locations may decrease due to political turmoil, as a result lowering the options for parcel delivery to the selected destinations.  Company X will need to make sure that its operations are managed smoothly despite the political uncertainty.

Economic

Industries in different regions across the globe are recovering after the economic recession. This recovering economy has created growth opportunities for the businesses in different countries. UK is included among the top 3 countries in Europe which are marked by financial prosperity and growth. During the financial crisis, UK government has implemented some measures to reduce the damaging impact of the financial downturn on the region’s economy. UK financial growth pattern suggests that the country’s economy has significantly recovered from the economic crisis. As depicted from the GDP real growth rate, it has increased from 1.7% in 2013 to 2.5% in 2015 (Central Intelligence Agency, 2016a). This increase in GDP growth rate indicates growth in the ratio of consumer spending over the years. Moreover, the businesses have increased their level of investment as well, adding to the growth of GDP. Company X can gain benefit from the growing economy of UK and increased consumer spending.

In case of African countries, Nigeria has experienced a decline in GDP from 6.3% in 2014 to 4% in 2015 (Central Intelligence Agency, 2016b). Ghana has also experiences some decrease in its GDP as the ratio was 3.5% in 2015, while in 2014 it was 4% (Central Intelligence Agency, 2016c). Even though South Africa has better infrastructure, the region faces challenges such as unemployment and inequality. The GDP rate in South Africa also shows a downward trend, falling from 1.5% in 2014 to 1.4% in 2015 (Central Intelligence Agency, 2016d).

The economic component from the macro-environment has also been affected due to the changes in prices of oil. Economies that are dependent on oil have faced decrease in GDP rate such as Nigeria. On the other hand, lower oil prices has resulted in decreasing air fares which can appeal the air travelers, increasing the number of passengers traveling in the international domain (Rapier, 2015).

Social

The social forces shape the consumer attitude, taste and preference which in turn effects the financial gain of an organization. Consumers find low cost international delivery service an appealing option as compared to the courier companies charging a high rate for the delivery services. Company X can base its services keeping the consumer need for low cost international delivery service into consideration. Moreover, the attribute of quality holds a great deal of importance for the consumers of delivery companies. Therefore, the company should offer a blend of affordable rates with quality of delivery service. Another means through which an organization can create a positive image in the target market is through participation in socially responsible activities (Popoli, 2011). Taking the example of one of the leading courier companies, the management at FedEx has initiated the activity of offering donations to the populations that have been effected due to some natural calamity. In a similar manner, by positively contributing to the community, Company X can create a favorable image among its potential customers.

Technological

The technological developments have enabled business to carry out their operations using the internet and mobile platforms. Courier companies have also integrated internet based services which enable the customer to keep track of the parcel that has been sent. The development of mobile applications can offer the customer newer means of connecting with the employees of the courier companies. Since Company X is a web-based service, it intends to take leverage of the internet and mobile platform for the purpose of managing its international delivery services. The key points of consideration would be maintaining efficiency of operations, quickly responding to the customers and making sure that the database is maintained to connect the sender’s requirements with a traveler who can meet those requests. These objectives can be achieved through maintaining an IT infrastructure that is aligned with the business needs and scope of company operations. As the company is highly dependent on web, the quality of IT infrastructure would further enable it to maintain customer satisfaction.

Environmental

This factor is mainly related to the way company operations impact the environment. Environmental factor includes themes such as eco-friendly business operations, use of renewable energy sources. The environment protection agency has developed increasingly strict policies in an effort to curtail the environmental damage caused by the business organizations. Since Company X is not directly managing the transportation of packages, but is dependent on the passengers traveling through different airlines, the eco-friendly policies in this domain are not relevant. However, within the direct scope of company operations, the management can pursue implementation of renewable energy, rather than using fuel based energy.

Legal

The legal framework in UK and Africa seems to have some similarities, however the degree of implementation differs. In the African countries, laws are not as rigorously applied as in case of UK. Nevertheless, the legal aspect holds importance for the international delivery services. The contents being carried from one place to another shouldn’t have any prohibited item. Failure to adhere to such legal regulations can give rise to severe consequences for the sender, the traveler carrying the package, the receiver as well as the organization. Company X is dealing in international delivery industry, managing the parcel delivery process through passengers traveling to specific destinations.

A great deal of responsibility lies with the management and employees to verify the personal details issued by the traveler and scrutinize the items being dispatched by the sender. Furthermore, the details of the items in the package need to be communicated to the traveler, allowing them the option to accept or decline carrying the package. Company X would also be responsible for ensuring that the detail provided by the parcel sender and travelers at the time of registration are confidential and inaccessible to unauthorized people. The laws related to employment practices are also important as the company needs to make sure that the selection of employees is based on equal employment opportunity. In addition, the employees need to be provided with a workplace that doesn’t discriminate against them and recognizes the employee rights.

3.3 Porter’s Five Forces Model

Porter’s five forces model is a useful tool to understand the competitive nature of the industry which can assist in making decisions about positioning the business and its products. In addition, it can provide the management with an idea about the possible profitability that the business can gain in a specific industry (Ahlstrom & Bruton, 2009). The following section analyzes the five forces for the international delivery industry.

Threat of New Entrants

The threat of new entrants increases if the new companies find it easier to establish their operations in an industry. An industry can offer a favorable environment to new companies if the government regulations support the growth of an industry, for instance offering subsidies to organizations. Moreover, the cost of setting up operations is an important determinant in creating threat of new entrants. The courier industry can be divided into domestic and international service. In case of the courier industry, the threat of new entrants is significantly high in case of the domestic courier companies. However, in case of the international delivery services, it requires capital input to establish supply chain operations (IBIS World, 2016). Nevertheless there are no stringent set of regulations in the industry, therefore the international delivery service has moderate threat of new entrants. The business model of Company X is comparatively easier to replicate than its large scale competitor companies as it doesn’t require massive capital investment. This situation increases the threat of new entrants, therefore it can be concluded that the threat of new entrants for Company X is high.

Bargaining Power of Buyers

There are various companies offering parcel delivery services with variation in their service rates. The segment of customers who are not likely to compromise on quality may be willing to pay a higher rate and select a delivery service company that promises quality, yet charges a higher price. On the other hand, the choice of some customers may be driven by the lower price of parcel delivery, thus they would consider the option of selecting a service that they consider as affordable. On the basis of this analysis it can be seen that the buyers of international delivery service have high bargaining power as they can select a company that suits their requirements, whether its cost or service quality. Company X needs to understand the needs and preference of its potential customers in order to retain a high level of profitability.

Bargaining Power of Suppliers

The suppliers have moderate level of bargaining power. The suppliers in the case of parcel delivery industry comprises the people who are delivering the packages to different destinations. In case of the context of Company X, the passengers traveling to different locations in Nigeria, Ghana and South Africa are the suppliers as they would be carrying the packages of the senders. The company has to offer the travelers with a payment in return for their services that is seen as appealing by the passengers. However, the passengers can’t ask for a significantly higher charges as the company can contact another passenger to deliver the parcel who agrees to the stated rates. Another segment of supplier for the industry is the provider of information technology services. The company may require a software to manage the operations in an effective manner.  The providers of IT services have some level of power on the company, nonetheless, they can’t exert a great deal of influence on the price offered by the company as the management can seek alternative suppliers of IT services.

Threat of Substitute Products

The threat of substitute products is high in the international delivery industry as there are various companies offering similar services of delivering the parcel to different countries across the world. The customers can switch from one company to another without any major switching costs, thus making it easy for the customer to change their choice. The presence of different companies in the international courier industry makes it easier for the customer to select a company that fulfils their needs and is in accordance to their demands. Company X will need to provide the customers with premium quality service at an affordable rate to ensure that the customers are retained. It would also enable the management to expand the number of customers.

Competitive Rivalry

Another force that can affect the level of profitability of a company in the international delivery services industry is the number and size of competitors present in the industry. UK courier service industry includes some of the leading organizations that are operating in different countries in the international arena. A few examples in this regard are FedEx, DHL, TNT and UPS, which are large scale delivery service providers, with their network established into UK as well as different African countries. Apart from these renowned firms, there are some other companies as well in the UK that offer parcel delivery services to Africa such as Swift couriers, interlink direct etc. These companies have created intense competition in the industry, making efforts to increase their customer base and profitability. On this basis it can be seen that the threat of competitive rivalry is significantly high in the international delivery industry.

4. Competitor Analysis:

The main competitors of Company X are the leading courier delivery organizations that are offering parcel delivery services to the international market, enabling the customers residing in UK to send packages to different African countries. These organizations are FedEx, DHL, UPS, TNT, DPD and Parcelforce. On an average, the parcel delivery to the international destinations can take 3 to 5 days, which is managed through the logistic resources available to these large scale firms. Overall, it can be seen that these firms have been able to attain economies of scale through investing in the company owned means of transportation. The availability of such means of transportation has become a source of competitive advantage for these international delivery organizations.

FedEx is the leading competitor in the international delivery industry as it serves the customers in over 220 countries. It is also a usual choice for businesses that intend to import or export products and goods from other regions. The company has its fleet of airplanes for international parcel delivery and other means of transportation for the domestic distribution of parcels. In 2015, the company has added more than 15 Boeing airplanes in its fleet of aircrafts, expanding the capacity of urgent delivery of the packages to its 220 destinations. In 2016, the management has expressed the aim to add 11 more airplanes, further increasing the capacity of handling the number of parcels. The brand image, scope of operations and service quality makes it challenging for the other companies to compete with FedEx.

DHL fulfills the needs of individual customers, as well as offers packages for the businesses. For instance, the small and medium business solutions provides the corporate customers of SMEs to import and export the products using the company’s service. Similar to FedEx, DHL covers more than 220 countries, offering delivery services to a wide range of locations to its customers. The company employs 497,745 personnel who manage its various international delivery and logistics services. Another important component that adds to the strength of DHL is its involvement in the e-commerce sector, connecting the businesses with the consumers in the B2C segment.

UPS is also covering more than 220 destinations, thus competing with DHL and FedEx in terms of the number of territories included in its scope of operations. The company offers international delivery solutions to the customers seeking urgent delivery of the packages, charging a premium price for the service. Along with that, it offers a lower cost delivery service, which can take up to 5 business days.

Similar to the organizations discussed above, TNT is included among the top courier companies in the international market.  Its international express delivery service promises the customers with an efficient supply of their parcels. For instance, the company has the capability to deliver a package by noon in more than 65 countries. Efficiency provides it some edge over the rival companies.

Another parcel delivery service operating in UK is DPD which manages the package deliveries in Europe and International destinations, covering more than 200 locations. The company has a separate delivery option for parcels that exceed the weight limit of 31.5kg, thus catering to the needs of those customers as well who want to send larger and heavier packages.

Parcelforce has been a part of the courier industry for 25 years. The company delivers packages to more than 240 countries. The company uses technology such as scanners and x-ray machines to manage the sorting and processing of the received parcels.  On an international scale, the company is managing more than 7million parcels and dispatching them to different locations across the globe.

5. STP Analysis

STP analysis holds a central position in the process of development of a marketing strategy for an organization. It involves identification of the different groups in the target market (segmentation), which is followed by the identification of a specific group of customers that the business intends to serve (targeting). Another component in the STP process is positioning, which is related to consumer perception about the product or service being offered by an organization (Strydom, 2005).

Segmentation

The businesses and individuals intending to send parcels and documents to African countries constitute the segmentation for Company X. Corporate customers and individual customers both engage in sending parcels to the African countries (Ghana, Nigeria and South Africa) from UK. Apart from the people sending the parcels, the travelers who carry the packages to African countries also constitute the market segment.

According to Office for National Statistics (2015), UK has experienced a growth in the ethnic minority groups in its population, increasing the ethical diversity in the region. It has been further noted that a significant number of African British people belonged to Nigeria, Ghana and South Africa. The highest ratio of immigrant population was found to be residing in London (Hawkins, 2016), making it a favorable location for setting up the international delivery service company. Moreover, London is one of the key regions in Europe which are characterized by international trade and transaction of business activities.

Targeting

The targeting for Company X would involve individuals who are seeking affordable parcel delivery services and the people traveling to Nigeria, Ghana and South Africa. People belonging to different age groups, gender and lifestyle would be included in the target market for the company.

Positioning

The positioning of a product or service and aligning it with the needs of the target market plays a critical role in determining the profitability of an organizations. In case of the international delivery services offered by Company X, it can be seen that the positioning of the organization should be based on cost effectiveness of the service. In addition, maintenance of quality in the service is also important to drive consumer satisfaction and retention. For the travelers, the positioning of the product would entail offering them a price for their services which is deemed as appropriate by the passengers.

6. Marketing Objectives

Marketing objectives of an organization need to be measurable, realistic, while at time same time should outline a timeline to indicate the duration during which these objectives need to be achieved. It enables the management to monitor the company progress in terms of the marketing objectives and bring any necessary changes if needed in the marketing activities. The following marketing objectives have been developed for Company X:
• To achieve 20% increase in company revenue in 1 year of operations.
• To expand the company operations in 3 more African countries in 1 year.
• To attain 40% increase in the number of parcels delivered Africa in 2 years.
•  To increase the market share up to 15% in 2 years.

7. Marketing Strategy

The marketing strategy for a service oriented organization is based on the 7 P’s of marketing, which outline the activities that need to be undertaken by the marketing officials in an organizations. The marketing plan for Company X is provided as follows:

Product

The product or service being offered by Company X is based on the idea that parcel from the customers residing in the UK would be sent to the three destinations in Africa including Nigeria, Ghana and South Africa. The idea behind the service is that passengers traveling to these three regions would be connected with the senders of the parcel through the company website. The representatives of Company X would authenticate the details provided by both customers and travelers to ensure that the parcel is handed over to the customers who can manage the responsibility. It would also provide the parcel senders with the confidence that their package would be delivered in a timely manner. Furthermore, the risk that traveler would not deliver the parcel to the specific destination is reduced when the personal details are obtained. This ensures that the traveler understand the responsibility of parcel delivery and doesn’t embezzle it. The management at Company X has conducted a survey which indicated that the customer value cost efficiency and quality of service. Travelers would be provided with details about the package and after their confirmation the customer and traveler will be connected via Company X.

Price

The pricing of the parcel delivery service should be in accordance to the expectations of the parcel senders and travelers. The price should be viewed as affordable by the people sending parcels which would enable Company X to position itself as a low cost international delivery service provider. The customers should be able to see a notable difference between the pricing of other international courier organizations and Company X. The travelers should be offered 40% of the rate charged from the parcel sender, while 60% of the charges would be the earning of the organization. The company can offer special discount for the customers who frequently use its services to send the parcel. This would help Company X to take benefit from customer loyalty schemes and retain the customers.

Place

Company X will be managing its operations through website. Along with that, a mobile application has also been developed to enable the customers to access the company website for registration. The company has its head office located in London, UK which can be visited by the parcel senders and travelers. This would enable the management to create a trustworthy position in the market.

Promotion

The promotion of Company X will be conducted using both contemporary means of marketing, such as social media. The company has developed a business page on Facebook, has created a page on Twitter. Facebook and Twitter would be used as a platform for making important announcements related to the business and communicating about the promotional and discount campaigns being managed by the company. In addition to this, the customers (parcel sender and passengers) can get answers for their queries by contacting the employees through the social media pages. The company website would also be used as a means of providing basic information about how the delivery process works. In addition, channel of YouTube will be used to create awareness about the company and its services. The traditional means of print advertisement will also be included in the promotion as the company will be using advertisement in the newspapers to provide awareness to the public about the services being offered.

People

The customer’s interaction with the company employees is important to shape a positive perception of the business among the customers. It would also help the customers to develop trust on the organization. Trust is at the core of the company operations as it would provide the customers with the needed assurance to use the international delivery service offered by Company X. Along with that, positive interaction with the company officials would encourage the travelers to sale their luggage space, while having the confidence that Company X would make payment as soon as the parcel is delivered and no back end problems would hinder in the timely payment process. For this purpose, the employees and customer care representatives should be offered training which would help in shaping their communication skills and provide them information about how to handle customer queries. In addition, employee training would also focus on handling conflict and dealing with dissatisfied customers in order to respond to their needs in an appropriate manner. Another area where employees need to be trained is the management of IT processes. Since Company X will be functioning as primarily a web-based service, the employees have to be equipped with the basic knowledge about handling IT software. Employees who do not have knowledge in this domain can be provided with training opportunity to learn the basics and be a part of Company X in an effective manner.

Process

The component of process is initiated by registration of the customers both parcel senders and passengers interested in carrying the packages and the verification of the information they have provided to the company. The employees are also responsible for collection of information about the parcel and matching the parcel requirements with the passenger who is willing to deliver it. The processes of the service further includes ensuring that the parcel has reached the agreed upon destination and issuing the payment to the traveler who has carried the parcel.

Physical Evidence

In case of Company X, physical evidence will be evident through the environment customers experience at the company office, as well as the quality of service they receive from the company. In order to illustrate quality online assistance will be made available 24/7 and trained technical staff would be there to help the customers with the registration process. Authentication of the data will be made to reduce the risk of parcel loss or any other forms of embezzlement. Moreover, the commitment made with the customers has to be strictly followed in terms of cost, efficiency and quality.

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