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2011

Executive Summary

The focus of the strategic marketing plan would be to outline a strategy for the TNT company, which
is a very well known courier company. This company has managed to gain success in the past but it
is apparent that in placed like Malaysia, the company is undergoing heavy competition from various
other courier companies. Increasing competition, lack of innovation and high pricing are all factors
that are contributing to the low performance of the TNT company in Malaysia. What is apparent here
is that the success of TNT is now under threat as there is immense competition and also lack of
efficient marketing at the company in Malaysia. The primary aim of the strategic marketing plan
would be to make a proposal of a strategy to make the firm very competitive through capitalizing on
its strengths and taking advantage of its opportunities. The firm provides a courier related services
and the aim of the report would be to focus on their express courier service that concerns the courier
of documents, parcels as well as packages inside and outside of Malaysia. The strategic marketing
plan outlined its mission and vision, their strategic objectives as well as a deep analysis of their
micro/macro environment. The firms key success factors would be examined and the macro-
environmental analysis would likely to bring out trends as well as relevant information which would
then be subject to examination of the present state of the market, its industry and also various
relevant data that can help to pave the way for the recommendation of a marketing strategy for TNT.
Among the conceptual frameworks that would be used include SWOT and PEST. It is stated here
that the implementation of the strategy is likely to assist the company to address issues and
challenges so as to make sure that there is survival for the following 3-5 years.

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Table of Contents

1.0 Introduction

2.0 TNT Corporate Profile

3.0 Mission of TNT Malaysia

4.0 Vision of TNT Malaysia

5.0 Strategic Marketing Objectives

6.0 Key Success Factors for TNT Malaysia


7.0 Macro/Micro Environmental Analysis for TNT

7.1 MICRO Analysis

7.2 MACRO Analysis

7.3 TNT SOWT Analysis

7.4 Final Analysis for Macro/Micro Environment of TNT

8.0 Strategic Thrust

9.0 Developing Medium Strategic Options

10.0 Financial Analysis for TNT

11.0 action plan

12.0 Conclusion

13.0 References

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1.0 Introduction

The strategic marketing plan is concerned with TNT’s express transportation services and there
would be an analysis of relevant factors and components of the strategic marketing plan for TNT will
be outlined and to be aimed at giving way to a sort of strategy which can help this division of TNT
so as to become very competitive in Malaysia. It is apparent that with the presence of other
competitors, both large and small, TNT face a hard future in the event that they do not make
improvements to their marketing strategy.

2.0 TNT Corporate Profile

TNT Express Services can be outlined as being a sort of courier service company that was originally
premised in the UK and now it has a presence in most parts of the world, including Malaysia. The
primary specialization of the company would be to provide global express, logistics and mail
services all over the globe. The company is now getting an increase in the amount of annual turnover
but of late, the financial performance of the company is thrown into doubt due to high competition in
the market (TNT.com – Company Profile and Information, 2011).

3.0 Mission of TNT Malaysia

The very first mission pertaining to the TNT company would be to pave the way for enhancements
pertaining to the services offered by customers and this is so that these customers can obtain very
high quality. It is this that is noted to comprise of the primary mission of TNT. In line with this, the
company is focused on providing a number of highly efficient express and logistics solutions that are
focused on a number of local techniques and expertise that are synergized with TNT’s vast global
presence (TNT Group.com – Business Mission, 2011).

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4.0 Vision of TNT Malaysia

With regards to the vision of the company, it is appreciated here that the vision would be for the TNT
company so as to exceed customers expectation when it comes to couriering customer goods and
documents all over the world. TNT has the vision of delivering value for their customers and this is
done by giving them very reliable and efficient solutions relating to distribution and logistics. What
can be stated here is that TNT are noted as being leaders in the industry and this is done by instilling
pride in their people, and this is done through creating value for their shareholders and also via the
sharing responsibility in all of the world (TNT Group.com – Business Mission, 2011).

5.0 Strategic Marketing Objectives

In relation to the strategic marketing objectives of TNT, it is to be noted here that these marketing
objectives are reachable and they are also logical. The objectives would be as follows:

 Qualitative:

The main objective of TNT Malaysia is to expand in the market. Because of the intense competition
in the market such as DHL, FEDEX. So they allow for the increase in the total amount of market
share that is currently held by TNT by about 5% by the end to of 2012. And by providing the best
service and the most speed and commitment to competitive prices compared with competitors.
As regards the services provided by a company that works to increase customer satisfaction .. The
company is giving special discounts to members and to provide tracking services on the Internet and
other services increase customer satisfaction
 Quantitative:
To allow for the increase in the total amount of sales revenue that can be obtained from TNT
Malaysia’s express transportation service division by up to 18% towards the end to 2012
 Financial:

The main goal of each company is working to increase the proliferation in the market, which in turn
will lead to increased income and profit of the company. The company has developed a specific
strategy to reach a higher level of proliferation in the market

TNT Malaysia’s financial objective is to increase profit by using the selling technique of more
selling to maximize profit. The company not only wants all the financial benefits but is wants to

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serve people & by charging less. The more the people get use of that, the more profit could be earn
by the company.

 Marketing:

TNT Malaysia’s one of the most important objective in the market is to ensure the highest level of
service and customer care. Also including:
 Extensive countrywide coverage
 Focus on capacity expansion
 Competitive advantage over competitors
 Improved distribution channels
 Launching of customer relationship programs
 Make popular the easy load
 Introducing new packages
 Achieve effective brand awareness within consumer market and in business market

6.0 Key Success Factors for TNT Malaysia

There would now be an outline of the success factors that are of relevance for TNT. It is these
success factors that are noted to responsible for changing TNT towards being highly successful. TNT
are required to give attention to these critical success factors when they are forming their strategy.

One of the first success factors for TNT would be their innovation and it is apparent here that TNT is
a company that is well acknowledged as being a very innovative force in the industry and it is noted
here that the company’s achievements are well recognised with a very prestigious business accolade
and that is the Queen's Award for Enterprise (Innovation category) (TNT.com – Company Profile
and Information, 2011).

The following success factor comes in the form of TNT’s corporate culture and apparently TNT
encourages a sort of 'home grown timber' policy when it comes to promoting. Apparently, the firms
largest achievement is them continuously finding very innovative ways so as to bring the best out of
their people. The other success factor for TNT is customer satisfaction and apparently, enhanced
customer satisfaction would be noted as being very essential for TNT so as to maintain its position in

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being the market leader in business-to-business express delivery (TNT.com – Company Profile and
Information, 2011).

Finally Innovative by offering a range of special services we can help the customers solve any
distribution problem they may face, get the most out of their communi-cations, and increase the
reach and effectiveness of every mail shot. That's why we see mail as a communication medium, one
that competes with radio, television, the Internet and other media. Given such stiff competition, our
customers have every right to expect us to be innovative. And that we are innovative can be seen in
our products and processes. TNT Post is constantly on the lookout for new ideas and new ways to
enhance the effectiveness of mail as a communications medium. The 200 years of knowledge and
experience we have gained in the Netherlands is helping us and our customers to make strides in
Europe today.

7.0 Macro/Micro Environmental Analysis for TNT

In this part of the plan, there would be an analysis of the internal and external environment for TNT
Malaysia. It is noted that the analysis is very significant due to the fact that the information that is
gathered can be used to become the foundation of the marketing strategy that would be
recommended for TNT so as to enhance its services. The is likely to help the strategic managers for
TNT to determine matters of concern for TNT, the very apparent trends that are present in the
environment, the various opportunities as well as threats facing TNT. This would likely to make sure
that the correct information can be obtained to help achieve the strategic objectives for TNT.

7.1 Micro Analysis

FACTOR DESCRIPTION

COMPANY  TNT Post, originally a Dutch company, is


continually expanding its network. "As the European Mail
market is moving towards full liberalisation, TNT Post is
well positioned to play an important role
 Across Europe, TNT Post is busy building its distribution
network. Whatever country we are in, our customers can

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expect a proactive approach with high quality standards and


competitive pricing. And a partner in business who rises to
the challenge of delivering the right solutions for our
customers.
 TNT acquired 25% of market share. They wants to grow
CUSTOMERS from 25% in the year of 2010 to 35% in 2011-2012. In
Malaysia,
 TNT Malaysia recorded a 19 per cent growth in revenue last
year, from a year earlier

COMPETITORS  an international competition by TNT to increase awareness


amongst the tens of thousands of own drivers and sub-
contractors to engage and encourage them to drive both
safely and more fuel efficiently.  TNT’s most efficient TNT
pick-up and delivery (PUD) driver in Malaysia was selected
to represent TNT South East Asia, to compete
internationally in TNT’s Drive me Challenge in the United
Kingdom in September. This competition, which was held
at Metro Driving Academy in Puchong is part of TNT’s
comprehensive environmental initiative, Planet Me, which
was launched in 2007 to reduce TNT’s carbon emissions.

 This partnership immediately improves service level for


SUPPLIER/
business customers in these markets in terms of delivery
PARTNERS
time, security and service quality. Transit time is shortened
by up to 2 days in some areas and from the system
integration between TNT and Poslaju, customers can track
their shipment on the same day and accurately.
 By strengthening TNT’s domestic network in Malaysia
through Poslaju’s extensive coverage, TNT can connect our
customers in more than 200 countries with their customers
in these areas effectively, and vice versa.” said Mr. Gerry
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Power, Managing Director of TNT Malaysia and Brunei.


 For 2010, the IFRS profit and loss account charge for
PUBLIC pensions, predominantly as a result of the improved
coverage ratio, is expected to be around €20 million (2009:
€60 million). The total cash contributions are expected to be
around €287 million (2009: €286 million), of which around
€260 million relates to the main pension plan and
transitional plans in the Netherlands (2009: €260). It is also
expected that increasing longevity, based on recent
statistical studies performed by the Central Bureau of
Statistics in the Netherlands, might result in a drop of
around 4% in the coverage ratio as at the end of December
2009 if the main Dutch pension fund decides to apply the
new mortality outlook.
 TNT's express business suffered a revenue decline
of €697 million (10.5%) while reaching an operating margin
of 3.2%. The revenue decline is due to an organic decrease
of €662 million and foreign currency exchange differences
of €114 million, partly offset by the effect of acquisitions of
€79 million.

MARKETING
 TNT’s operations in Malaysia consist of three international
INTERMEDIARIES
gateways in Kuala Lumpur International Airport (KLIA),
Penang, Johor Bahru and a network of 10 branches. TNT
operates a state-of-the-art warehouse in Kuala Lumpur
International Airport (KLIA) which is estimated to handle
80 per cent of TNT’s in-and-out bound international
business

Apparently, the total size of the express service transportation industry in Malaysia is quite large and
it is gaining more growth after the economic recovery in the global economy. It can be noted here

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that consumer purchase behaviour is now changing very significantly and of late, it is apparent that
there are an increasing number of customers that are preferring so as to use the services of courier
firms which are known to be offering their services at very low prices and which are as efficient as
TNT. Because of the economic instability around the world, it is noted here that a growing number
of consumers are not willing to use services of large companies such as TNT which are well known
to charge high prices and they are preferring to purchase the service from smaller firms which are
more cost efficient. This consumer trend is making TNT to experience a slowdown in the express
transportation services market (Istock Analyst.com - TNT Competitors, 2011).

7.2 Macro Analysis

FACTOR DESCRIPTION

Political Trends The Malaysian political system can be rated as being very efficient
and it is apparent that the presence of political stability contribute to
the increase in business stability as well. What can be stated here is
that it is this sort of political stability which is generally required to
make businesses like TNT to prosper. This company is likely to
benefit a great deal and this is because they can carry out their
business activities and they do not have to have much worry in
relation to issues to do with political instability or other business
disruptions which can have a bad impact on their business
performance (Nations Encyclopedia.com –Trends in Malaysia,
2011).

The economy of Malaysia is very stable and it is noted here that the

Economic Trends economic policies implemented by the government have brought


success and prosperity to Malaysia. With the presence of good
economic conditions, it is likely that TNT, like other companies,
can prosper and they can progress and take advantage of various
incentives that are provided by the government. With a strong
economy, TNT does not have to worry about having to go through
economic slowdowns and they would likely to do well and increase

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their profitability (Nations Encyclopedia.com –Trends in


Malaysia, 2011).

Social Trends The economy of Malaysia is very stable and it is noted here that the
economic policies implemented by the government have brought
success and prosperity to Malaysia. With the presence of good
economic conditions, it is likely that TNT, like other companies,
can prosper and they can progress and take advantage of various
incentives that are provided by the government. With a strong
economy, TNT does not have to worry about having to go through
economic slowdowns and they would likely to do well and increase
their profitability (Nations Encyclopedia.com –Trends in
Malaysia, 2011).

In relation to this firm and its express business, it follows here that
Technological
highly reliable deliveries, efficient lead times as well as enhanced
Trends
flexibility is essential in being a requirements to achieve success
and this is promoted by a growing supply chain network, a
reduction in overall inventories and changing demand from
customers (Ameinfo – Courier Service Technology, 2011).
It is apparent that TNT is a firm that is well committed in
delivering a good customer experience and it is apparent that they
are going towards providing e-solutions which are very fast, that
are highly reliable and which are highly efficient. For example, it is
noted here that the utilization of the TNT Customer Interface
Technology (CIT) is noted to be embracing a highly creative range
of despatch, tracking as well as tracing systems and it is noted here
that these are designed so that TNT can be even faster and to be
more accessible for its customers. In addition to this, it is noted
here that TNT Express also uses data that is obtained from

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consignment barcodes and hence it is apparent here that individual


packages can be tracked when they are in transit (TNT.com –
Company Profile and Information, 2011).

7.3 TNT SWOT Analysis

WEAKNESSES
STREANGTHS
 High brand awareness in the
 Lack of innovation and not enough
Malaysian market
diversification relating to the express
 TNT’s pricing is very competitive
services in Malaysia
in comparison to competitors like DHL
 Lack of efficiency to monitor competitors
 Total level of competence as well
moves by companies like FedEx and UPS
as capabilities for the management
 TNT does not have comprehensive
would be very high
experience in the Malaysian express
 High flexibility of services
delivery market
 Good communication in the firm
 Presence of diseconomies of scale
and between staff
 Highly innovative products and
services
 Increased amount of online
growth
 Loyal Malaysian customers
 High brand equity
 Efficient supply chain
management
 Possessing resources and
capabilities to expand via mergers and
acquisitions.

OPPORTUNITIES THREATS
 Reduced amount of purchasing power of
 Good chance for enhanced growth in

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the future in the Malaysian economy Malaysian businesses and individuals


which can motivate for there to be  High competition from large and mature
enhanced businesses opportunities express transportation companies including
and expansion FedEx and UPS
 Increase and expansion to do in the  Presence of smaller competitors offering
realm of global marketing creating a highly cost efficient express transportation
high demand for fast and efficient services   
transmission and transportation in  Possibility of economic slowdown around
relation to documents and business the world
packages  Presence of external changes
 International market expansion in  Presence of price wars
new regions
 Expansion of range of products and
services
 Likeliness of there being takeovers

7.4 Final Analysis for Macro/Micro Environment of TNT

In making an analysis of the data obtained, there is now the possibility of determining the primary
issues that are likely to impact TNT and these would have to be looked at in making the marketing
strategy. Among the considerations that have to be given attention include the following outlined:

a. Is it necessary for TNT to continue dealing in the express transportation business or should it
specialize in various other related and unrelated fields?
b. Is it required that TNT raise its advertising and promotion expenditure so as to increase the
awareness of Malaysians in the express transportation services?
c. Would it be essential for TNT to make investments for the purposes of research and
development in order to gain knowledge so as to make for very creative and advanced features as
opposed to its present services ?

8. Strategic Thrust

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Figure 7.6: Areas of Strategic Thrust


 Focus

segment information from a geographical perspective has been presented to give an overview of the
main markets. TNT has the following three reportable segments:

 Express business. The Express business provides demand door-to-door express delivery
services for customers sending documents, parcels and freight.
 Mail business. The Mail business provides services for collecting, sorting, transporting and
distributing domestic and international mail.
 Other network business. The Other network business provides time-critical deliveries to
individually agreed delivery point for business customers during the night.

 Innovation

TNT is acknowledged as an innovative force in the express industry - an organisation that sets and
raises 'the bar'. Historically the company has delivered a numbers of 'firsts' in the industry such as,
creating the first guaranteed nationwide door-to-door, business-to-business next day delivery service,
developing a first-to-market range of time sensitive early morning delivery options and launching the
first nationwide door-to-door same day delivery service. The company's achievements have been
recognised in the past with the ultimate business accolade - The Queen's Award for Enterprise
(Innovation category).
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 Quality

Our customers can rely on us. TNT Post is known for its reliable quality, efficiency and competitive
price/quality ratio, and we are determined to keep it that way. That's why TNT Post strongly supports
liberalisation, as long as it's done responsibly. The European postal sector needs to be liberalised if it
is to achieve efficiency, improve quality and allow for the introduction of new services.

9. Developing Medium Strategic Options


This part of the strategic marketing plan would concern the building of a marketing strategy and
there would be evaluation of various alternative options pertaining to the marketing strategy.

9.1 TNT Marketing Mix

9.1.1 Product Mix

In this case, the product is the TNT express transportation services which is provided to the TNT. It
is noted here that TNT’s Express service relates to the delivery of documents as well as a variety of
packages within and outside of Malaysia. The services are not recommended to be changed as it
seems that the service is sufficient and efficient.

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9.1.2 Price Mix

It is submitted here that the main element which is to be changed would be the price and it is what
the customers are paying for the services given by TNT. The primary recommendation which can be
outlined here would be for a price reduction of the express transportation services of TNT in
Malaysia. In terms of the price of the services for delivery outside Malaysia, it is also to be reduced
so as to become highly competitive. There are other competitors which are providing the same kind
of services and it is for prices that are much lower in comparison to TNT. To remain competitive, it
is highly recommended that the prices be reduced in order for it to be lower as opposed to the
competitors.

9.1.3 Placement Mix

With reference to placement, it is primarily concerned with how TNT’s services would be provided
to customers and it is submitted here that in order to have a very significant and high concrete
presence in Malaysia, TNT is recommended to open more offices and outlets which would serve as
their distribution channels in order to ensure that their services can be made available for the
customers. This would likely to require much more expenditure when it comes to building
infrastructure.

9.1.4 Promotional Mix

In terms of promotion, it would be concerned with how the TNT customer can be made to be aware
of the services that are offered by TNT as well as the advantages of the services. Promotion like this
can help to customers to decide whether they should make a purchase of TNT services. TNT would
have to communicate the benefits of their services to the target market very well and it is apparent
here that promotional activities would have to be increased in intensity and there are to be use of
comprehensive advertising tools so as to perform their promotional activities.

10.0 Financial Analysis for TNT


In this part of the paper, there would be an outline o the financial analysis for the TNT company:
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Profit and Loss Statement Projection for 2012 to 2014


TNT courier company Stated in 000s

Projection for Year 2012 to 2014

Projection Projection Projection


Year 2011
2012 2013 2014
Sales Revenue
Courier services 772.50 850.00 950.00 1505.00
Logistics 411.60 210.00 470.00 505.00
Other sales 75.00 88.00 96.00 106.60
Total Sales Revenue [J] .00 .00 .60

Cost of Sales
Purchases 220.40 310.00 170.00 301.00
Carriage 122.80 130.00 120.00 131.00
Returns 0.00 57.00 19.20 38.12
Total Cost of Sales [K] .20 .00 .20 .12

Gross Profit [L=J-K] .00 .00 .00

Operating Expenses
Sales and Marketing
Advertising 325.50 230.00 196.00 272.60
Direct marketing 15.95 30.00 41.00 32.10
Communication 30.10 50.00 41.00 52.10
Public Relations 48.95 66.00 46.60 37.26
Total Sales and Marketing Expenses [M] 30.50 76.00 64.60 124.06

Research and Development


Technology licenses 27.85 40.00 37.00 39.30
Technology Hardwares 75.96 90.00 60.00 81.00
New product Development 25.00 30.00 42.00 54.20
Total Research and Development Expenses [N] .00 .00 .00 .00

General and Adminstrative


Wages and salaries 122.50 140.00 173.00 230.00
Outside services 20.70 27.00 37.50 42.25
Supplies 110.20 53.00 64.00 58.40
Meals and entertainment 16.50 11.00 31.00 22.10
Rent 118.00 76.00 75.00 71.50
Telephone 37.75 33.00 43.00 46.30
Utilities 25.32 55.00 54.00 58.40
Depreciation 13.20 9.00 12.70 8.47
Insurance 74.64 76.70 21.80 11.38
Repairs and maintenance 12.62 10.00 22.00 34.20
Total General and Adminstrative Expenses [O] . .00 .00 .00
Total Operating Expenses [P=M+N+O] .00 .00 .00
Income from Operations [Q=L-P] . .00 .00 .00
Other Income [R]        
Taxes
Income taxes 120.50 134.00 125.50 214.70
Total Taxes [S] 120.50 134.00 125.50 214.70
Net Profit [T=Q+R-S] .00 .00 .00

Table 1: statement of profit/loss

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Table 2: Marketing plan budget for each quarter

10.0 Action Plan for TNT

Marketing research (competitor, customers, environment) 1/1/2012 – 1/5/2012


Designing new packaging for TNT service 5/5/2012 – 1/8/2012
Opening of new TNT outlets in various parts of Malaysia 1/9/2012 – 1/5/2013
Launch of new TNT express service package 1/6/2013 – 1/8/2013
Launch of promotional campaigns across Malaysia 1/9/2013 – 1/3/2014

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11.0 Conclusion

In this marketing plan, recommendations were made to enhance the TNT express transportation
service and there were also suggestions in relation to the method of promotion and there was a
requirement for there to be more research in the markets so as to collect the required information in
order to carry out improvements towards the service. This is so that the service can become more
popular with Malaysian consumers. It is apparent that the price of the TNT service is causing TNT to
be uncompetitive and it is not gaining sales and it means that the primary focus of the strategy would
be on reducing the price for the service and the only way that this can be accomplished is to enhance
the operations and processes for the firm so as to provide for enhanced cost effectiveness. In relation
to the price reduction, it is recommended for TNT to take part in very highly intensive promotions as
well as advertising campaigns. These can be utilized in order to increase the awareness of the
Malaysian consumers in relation to their services. In respect to marketing research, it is also
recommended to be enhanced and apparently, this sort of research can have the impact of providing
the information required by TNT to increase their competitiveness and to acquire knowledge in terms
of the changes taking place in the environment and that which can impact their performance. By
adhering to this marketing plan, it is likely that TNT Malaysia would increase its competitiveness
and make sure that the firm has a bright future ahead of it.

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12.0 References

Kotler P, Brown L, Adam S, Burton S and Armstrong G, 2007 “Marketing” - Pearson: Education
Australia, Seventh Edition

SWOT Analysis, 2011-  citing from an internet source:


http://articles.castelarhost.com/nestle_swot_analysis.htm Accessed on: 3-2-2011

Tutor 2 U – Marketing Mix Strategy, 2011-  citing from an internet source:


http://tutor2u.net/business/gcse/marketing_strategy_marketing_mix.htm Accessed on: 3-2-2011

TNT.com – Company Profile and Information, 2011-  citing from an internet source:
http://www.tnt.com/express/en_gb/site/home/about_us/about_tnt_express/company_profile.html
Accessed on: 3-2-2011

TNT Group.com – Business Mission, 2011: citing from an internet source:


http://group.tnt.com/aboutus/ourbusiness/mission/index.aspx

Istock Analyst.com - TNT Competitors, 2011 citing from an internet source:


http://www.istockanalyst.com/competitor/TNT

Nations Encyclopedia.com –Trends in Malaysia, 2011 citing from an internet source:


http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Malaysia-FUTURE-
TRENDS.html

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