DHL's Service Strategy for Fashion SMEs

This assignment examines DHL's current service strategy in relation to the fashion industry, particularly focusing on small and medium-sized businesses (SMEs). It argues that while DHL has a strong reputation for delivery needs, it requires a realignment of its services to better cater to the specific requirements of fashion SMEs. The analysis recommends marketing strategies tailored to this target market, highlighting DHL's reliability and commitment to supporting SME growth within the fashion sector.

DHL’S SERVICE ALIGNMENT AND MARKETING 1
DHL’S SERVICE ALIGNMENT AND MARKETING FOR SMALL FASHION
ENTREPRENUERS
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Course
Name of Course instructor
Institution
The City and State location
Date

DHL’S SERVICE ALIGNMENT AND MARKETING 2
Table of Contents
Small fashion Business purchasing behavior..................................................................................3
Tailor made service offering for Small fashion Businesses............................................................4
Developing a marketing campaign targeting Small fashion businesses..........................................5
Advertisement campaign..............................................................................................................5
Event development- Exposition...................................................................................................6
Conclusion.......................................................................................................................................6

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Introduction
The core concept of DHL service is to offer delivery service value through a designed
service delivery system to a target market that is need of the service. However developing
customer-focused delivery system that is aligned to their needs has a positive impact on customer
experience and satisfaction as well as a Company’s profitability. Customer segmentation
therefore become vital for identifying customer needs to develop needs oriented service system
that satisfactorily offers the most satisfaction to a particular client group (Ozmen, et al.
2014:Hunter et al. 2004). Small businesses are one of the largest growing segments in the world
that, owing to their limited resource capabilities choose to include 3PL as a viable alternative for
their supply chain needs.
Small fashion firms have experience notable growth and exposure since the advent of E-
Commerce. IBISworld (2017) research report shows that online clothing shopping has an
annual growth of 12-17 percent creating a rising need for 3PL among many small fashion e-
stores in the global market. It is therefore imperative for DHL to appeal this customer segment
understanding by proactively communicating the tailor made solutions it offers based o a
comprehensive segment understanding of small businesses.
Small fashion Business purchasing behavior
Top among the motivations that drive an SBU to purchase is value addition to the
business with revenue increase and reducing cost coming second. In a small business Unit it is
established that the owner is the Key purchasing decision maker (Kavak, Tunçel and Özyörük
2015). However several elements influence the purchasing decision of new product. The most
influential element is the adoption and confidence level of the product among other business
owners in the same field. Notably seeking further information regarding a product is done
through conversation with colleagues, vendor representatives, and company websites
respectively (TAB Small Business Pulse Survey 2016).

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In terms of gaining confidence with a product, Small business Unit Owners evaluate
testimonial that attributes other peoples satisfaction with the services offered although they also
prefer a trial& error approach where they deliberate on a product offering by using it themselves.
However vendor demonstrations play a small role in shedding light on the value proposition
being offered (TAB Small Business Pulse Survey 2016). In such a case research shows that most
small business operators finding vendor information trustworthy and therefore keep an open
mind.
Tailor made service offering for Small fashion Businesses.
In the fashion industry, the most apparent logistical issues facing both big and small
business include delivery performance (efficiency of delivery), flexibility (return policy) and
responsiveness (pick up frequency and place), real-time assurance of delivery (tracking of goods
to the end consumer) and integrate international trade regulations (Van der Valk and Rozemeijer
2009). While DHL’s offers a wide variety of these factors it is necessary to develop a tailor-
made service factor that particularly appeals to these essential factors within the SBU target
market. In this respect, offering E-solutions, E-billing, time and day definite service, next-flight
out, shipment consolidation services and one stop clearance in a service package would help in
developing a seamless supply chain that would unburden small scale business that would
unburden them any disconnect on the supply chain end(Coltman, Gattorna and Whiting 2010).
Additionally, since small fashion businesses leverage most of their brand image through quality,
efficiency and reliability, it is important for DHL to extend after sale services such as track and
trace where customers can keep track of their merchandise. In the event there is a delay, a
courtesy call to the customer from DHL would go a long way to maintain high professionalism
and credibility of a fashion business(Oke and Gopalakrishnan 2009). Such alignments of services
to the needs of the small fashion businesses have the potential to yield life-long client which is a
trait among small business units.

DHL’S SERVICE ALIGNMENT AND MARKETING 5
Developing a marketing campaign targeting Small fashion businesses.
Customer-centric services are developed mainly by understanding the motivations that
drive purchasing decisions within the target market. Consequently a message is developed in an
innovative manner to communicate a firms understanding of the consumer’s needs through
various media channels. According to Small business pulse (2016) value addition is a top priority
in the purchase decision-making. In this case a DHL campaign should revolve around the theme
of reliability and ease of doing business.
The main outcome of DHL’s campaign should be to create awareness of oncoming expo
for small business entrepreneurs and top of mind positioning among the small business unit base.
The message should be ‘joining other business people in using the most reliable 3PL company in
the world that care for you”.
Advertisement campaign
Communication should also be conducted on several media channels and event. TV
commercials and online marketing offer the best avenues to reach a wide variety of people.
Social media integrates visual, audio and text messaging service at a relatively low cost thus
increasing degree of viewership as well as word of mouth(Mangold and Faulds 2009). Hash tags,
YouTube videos and an event attendance page of face book have the capability of going viral,
which would surpass the expectations of DHL’s campaign.
DHL should develop a TV advertisement that integrate testimonials from other small
business owners- especially in the young and old fashion using the service, highlighting their
experiences and confidence in the service products being offered. A celebrity endorsement of a
known celebrity in the small business realm would work to incentivize SBU owners to attend the
event (Bolan and Williams 2008). DHL should also highlight their role as an industry leader
anchored on in-depth understanding of their customers. The advert should highlight an oncoming
event expo in which all small business entrepreneurs are invited. Replicating the same message
on internet marketing maximizes on awareness reach while also creating interest through an
aggressive top of mind agenda (Bolan and Williams 2008). It is imperative that all information

DHL’S SERVICE ALIGNMENT AND MARKETING 6
sources should trace back to the company website, which add weight to the credibility of the
campaign information. Additionally it would prompt potential customers wishing to in-depth
information regarding DHL to easily access it through a link of the webpage.
Event development- Exposition
Event marketing is an essential marketing tool that brings together DHL’s personnel to
the potential customers. An exposition would be highly suit for DHL to highlight their variety of
services as well as the tailor-made service package dedicated to the small business entrepreneurs.
The event setup should involve a cross- functionality of DHL’s business with top vendors ready
to walk the potential customers through their value proposition. Secondly vendors need to
aggressively engage with attendees at the event to ensure to maximize on influencing buyer
purchase process. Finally the event should also have a subscription desk where customers can
sign up for DHL service packages. The Exposition event should be replicated all over the major
cities where there is potential to subscribe many small scale fashion businesses. This can be
aided by conducting a demographic market research on small scale fashion business around the
world.
Conclusion
Notably, with the growth of E-commerce, DHL is set to significant growth in 3PL service
delivery needs- especially among small businesses in the fashion industry. However it is
incumbent upon DHL to realign strategic services to the needs of small scale fashion producers
so as to maximize on service value and consequently on profitability. Additionally marketing
their services to the target market ensure that DHL curves out a significant share of the customer
base. This should be done through an aggressive campaign and events marketing revolving
around its reliable service offering and care for small business Owners’ interests.

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References
Coltman, T., Gattorna, J. and Whiting, S., 2010. Realigning service operations strategy at DHL
express. Interfaces, 40(3), pp.175-183.
Oke, A. and Gopalakrishnan, M., 2009. Managing disruptions in supply chains: A case study of a
retail supply chain. International journal of production economics, 118(1), pp.168-174.
Bolan, P. and Williams, L., 2008. The role of image in service promotion: focusing on the
influence of film on consumer choice within tourism. International Journal of Consumer
Studies, 32(4), pp.382-390.
Kavak, B., Tunçel, N. and Özyörük, H.E., 2015. Do Small and Medium Sized Enterprises Have
Their Unique Buying Behavior Variables?--A Qualitative Approach. International
Journal of Trade, Economics and Finance, 6(6), p.283.
Mangold, W.G. and Faulds, D.J., 2009. Social media: The new hybrid element of the promotion
mix. Business horizons, 52(4), pp.357-365.
Hunter, L.M., Kasouf, C.J., Celuch, K.G. and Curry, K.A., 2004. A classification of business-to-
business buying decisions: risk importance and probability as a framework for e-business
benefits. Industrial marketing management, 33(2), pp.145-154.
Ozmen, E.S., Öner, M.A., Khosrowshahi, F. and Underwood, J., 2014. SMEs’ Purchasing
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Van der Valk, W. and Rozemeijer, F., 2009. Buying business services: towards a structured
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Cyr, A., Meier, O. and Pacitto, J.C., 2011. “Method in their madness”: understanding the
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TAB Small Business Pulse Survey 2016, The Alternative Board, viewed 5 October 2017,
<https://www.thealternativeboard.com/wp-content/uploads/2016/02/Business-Pulse-
Survey-Business-Owner-Buying-Decisions.pdf>.
IBISWorld 2017, IBIS World, viewed 6 October 2017, <https://www.ibisworld.com/industry-
trends/specialized-market-research-reports/consumer-goods-services/apparel-accessories-
stores/clothing-boutiques.html>.