Marketing Strategies and Market Analysis of SF Express International

This study discusses the marketing strategies and market analysis of SF Express International, a leading express logistics service provider in China. It includes a SWOT analysis, market segmentation, targeting, and positioning strategies.

SF Express International
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Background information of company..........................................................................................4
Situational or marketing strategies..............................................................................................4
PART 2............................................................................................................................................6
The market analysis.....................................................................................................................6
The microenvironment.................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14
Reflection account.....................................................................................................................14
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INTRODUCTION
Marketing can be defined as an activity or procedure is being followed by companies for
promoting their goods and attracting customers for buying products (Grönroos, 2017).
Consumers’ behaviours and changing needs of customers are getting changed that is affecting
companies’ performance and with increasing Chinese economy, people’s consuming ability is
also increasing. Distribution and promotional activities is main key of success by which
companies can satisfy needs and can deliver products to customers. Quality of products, ability
to deliver products with effectiveness is main keys of satisfying customers’ changing needs. This
study is being divided into 2 parts. First project will discuss marketing strategies of SF express
with detailed information of this company. Second project will lay emphasis on identifying
company’s position in the market, intensity of competition. It will further discuss some internal
strategies of company that can help it out in becoming successful in the market. Along with this,
it will show some negative impacts of environmental factors and ways by which company can
mitigate all problems and negative impacts.
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PART 1
Background information of company
SF express is the leading and well-known express logistic service providers in China. It made a
growth and development in the market as it provides unique and qualitative one-stop integrated
logistics solutions to customers. Its logistic solutions include: sales forecasting, ways of
managing warehouses, big data analysis and others. Skilled employees and abilities of providing
qualitative services are the main key of its success.
Situational or marketing strategies
There are numbers of internal environmental factors that can affect overall performance of
company so, it is important for SF express to analyze all these factors. This analysis can help this
company out in knowing all about its strengths and as per the threats and weaknesses; it can
make changes in its internal strategies. With the help of SWOT analysis tool, it can identify its
own strengths, weaknesses, opportunities and threats that are:
Strengths
 One of the main strength of this company is an ability to adapt changes and providing
flexible services to customers as per their needs and demands. This strength makes it able
to being in the competition and attracting customers.
 Other main strength for which it is known is: fast services. Delivery of all logistic
solutions is quick. It is stated that as compared to other competitors it is 20% faster in
regards to terms of occupies initiatives (Cui, Li and Li, 2020).
 Other strength is its leadership style of transactional that leads an improved culture. This
style according to which it punishes and rewards to employees make employees
responsible and this strength can help it out in becoming the most respected as well as
trusted company.
Weaknesses
 Threshold of this express industry is low, domestic labor force is cheap and it makes
technical content low. It leads high staff mobility, lack of qualitative employees that
affects overall quality of products and it will affects its image. It is also found that this
company operates and run business in developed countries which means it does not
operate in remote and rural areas. It can decrease its sales and revenue as well.
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 EMS is the main domestic leader in China’s postal express that takes network
advantages. The main weakness of this SF express is it has unsound network as compared
to other express delivery companies.
 With educational background distribution of SF express, it can be known that lack of
talent is its other weakness such as:
Degree Number Percentage
Junior middle school 25153 25.73%
Senior high school 42384 43.35%
Junior college 20973 21.45%
Undergraduate 9256 9.47%
Opportunities
 China’s accession to the WTO can give numbers of opportunities to SF express. It
attracts foreign investment or foreign companies enter in China as it improves economy
of the country and SF can take advantages of competition because it has strategic layout.
Opening up overseas market can also bring numbers of benefits to this company (Li,
2020).
 Increasing use of advanced technology and E-commerce is also providing opportunities
to this company. Due to increasing numbers of E-commerce, it is taking opportunities by
improving distribution.
Threats
 Articles and letters delivery and posting is monopolized in nature as per the provision of
National postal law. So, as per this law, it is illegal and unethical for non-courier express
companies to send as well as receive such nature of letters. It is the main nig threat for SF
Company.
 Other main threat that can snatch numbers of opportunities from this company is
increased competition in this industry. In china, there are numbers of international
express giants that are well-known in delivery of logistic services and this rivalry or
competition between private express deliveries can increase problems for SF Company
(Liu, 2017).
So, on the basis of above discussed internal environmental factors or SWOT analysis of SF
Company, it can be said that it is effective and has strong sense of responsibility. It is also found
that it is bringing innovation within this industry and by publicising its services, it can increase
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sales. An ability to sponsor identifies and making use of network publicity can help it out in
meeting goals. It is also found that customers prefer using services, provided by SF express. It
wants to take advantages of international market along with domestic with development or focus
on E-commerce. After China’s entry into WTO, it is striving hard for taking all opportunities and
becoming the market leader. Its current development and growth strategy is to combine all
strengths with opportunities for market growth or accomplishing goals (Morais, 2019).
Along with this, it has some limitations or weaknesses that can affect its performance of SF
express. After identifying weaknesses and threats, it is expanding its business overseas and with
skilled employees it has expanded its business in Japan, US and Korea. Overall, it can be said
that SF express is an effective company need to focus on expanding business in other countries
and following all relevant laws.
PART 2
In this part this could explain about the segmentation, targeting and positioning along
with the five forces models and also analysis about the characteristics of services as business
have become more successful in China market.
The market analysis
Segmentation
In this competitive, company have not cross all the segments while for identifying more
about the most effectively complete in and also make sure for having the develop strategies and
that might be also developed in those segment which mainly suited to the business. While this
might be also important for knowing about the segments process in which the company can
developed their business and easily make sure for having the proper estimation in developing
more towards the china market (Western, 2021). This means that SF express international easily
identified their customer about which type of marketing will suited and what types of services
might be required along with the identification of the proper opportunities. In addition, the
company have make the segments while by designing the better products for just avoiding the
market price competition and that could be the same for the services for their products as better
possible. The market segmentation have been divided into demographic, behavioural,
geographical, psychographic segmentation. This is more necessary for the SF express in working
with behavioural and psychographic for having the better determination about the customer and
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market while this could important for knowing about the better estimation in completing while
by taking more benefits and make sure for having huge developments (Karle, Peitz and
Reisinger, 2020). The company caries out two main points for having the developing towards
market segmentation with having various transport and specialized express load which could
have different requirements for the clients in such way medicine, medical products, dangerous
products and sea food etc. Market segmentation must be important for the organization in which
they can easily make sure for having huge development and make their business for having huge
product and services. While having the market segmentation SF express come to know about the
various market condition in which they can work and easily make their sector for avoiding the
business estimation and make sure for having more better clients and customer. The business can
easily have their customer with the proper pricing for their products and services which could
keep them for having huge amount of succession in many countries.
Targeting
After the discussion from the segmentation the SF express need to make their focus
towards targeting customer. SF express the organization have make their better target segments
in which they can make sure for having the high policies and make sure for having the better
clients (Chen, 2020). While having the proper targeting customer the company can easily come
to know about those things which could keep them for having huge product and services. SF
express have chose the high value "niche market" in which the targeting market can be
commercial, trade industry and service market. The target market can be mainly having the
customer which might be mainly including big and small customer. Along with the common
points that can be followed by the for having the better business in such way fast, safe,
economical, convenient and having the high quality. At the same time, SF express needs to make
their more products and services with having the better and high quality of products in which the
customer can make sure for having the better price (Brolley and Cimon, 2020). This could be
also important for knowing about those things in which the targeting can be done through having
the better product and services for the customer in international market. This might does not have
the high end customer while by having the international express in which the company can work
and make their business for having profits. The company have also set their better timing in
which they can make their customer for having better services and make their feedback in which
some of the improvement might be needed. SF express keep their transportation with the time
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and make their targeted customer for having the better quality of products in which they can
make their better opportunities (Akbari and Ng, 2020). Targeting customer must be important in
which the customer services and keep the knowledge about the e-commerce platform and
keeping their customer with having local china market. While having the better the better local
market business this could also keep more motivation towards the business in which they can
easily come to know about how to make their business and make their customer as targeted in
having profits.
Positioning
Positioning seems to be important for the business in which the SF Express can make
their brand images. Along with this also important for knowing about the promotion information
for every day, including the better promotion activities repeated. Moreover, this might be also
important for knowing about those things which could keep their better promotional activities in
which the company can make their brand promotion (Huang and Rust, 2021). While having the
promotional activities this could led for having communication among the customer and many
other people who can easily come to know about their product and service in which SF express
can work and make sure for having the better option for selecting their products. Positioning also
keep the product in mind of customer, so through many years of promotion activities. As the
company have also secure their loyal customer who easily recognize about the attitude, quality
and having some of the concepts in which the company can work. While having the better
positioning that could also led for making some new customer through which the expansion of
business held and make sure for using various strategies in which the company can work. While
this might be also important for knowing about the valuable and make their better promotional
activities through which customer can keep their attraction. In keeping the attraction from the
customer, as they can take the benefits in which they can refer to some other people about the
better products and services. In keeping the positioning for the organization this could also led
for having the better brand image and also make sure for having promotional activities while in
which the company can make their customer and also keep their movement towards the better
profits. SF Express should also require to understand their customer needs and that could also
important for knowing about for those things which might play their better effective role for
products and services (Sukharev, 2020). While this might be also important in taking advantage
and make their business for having the products and services for their customer in which the
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business or organization can work. This could be also important for having the customer in
which they can work for which business can make their profit and easily come to know about the
better condition.
The microenvironment
This analysing about the porters model in which this could create more interested towards
having the proper estimation in completing with the goals and objective. While this might be also
important in knowing about the industries for having more profit than others. Here are some of
the five forces models:
Industry competitor
The main business for the companies international and domestic market such as intra city
express, inter provincial Express. This could be carry out while having the middle function for
the company in which they can work and make their business for which the companies can make
their profits. The main focus of the companies keeping the middle, high end market, while his
could be also have market share for 80% in which they can make sure for having their better
benefits. Along with the mainly other companies can keep their express are located on low
market and occupying in sharing their low-end market (Zhang, Lou and Ning, 2020). In terms of
the international business after having the five year rapid developments and this company also
covered more 78 countries in which they can work and make their business for having the huge
system. The company also brings out from which the business can complete their estimation in
developing international talents training and the gap for which the companies can allow more
benefits in working while for having more benefits. This can also help for developing products
and services in which they can make their business for domestic and international business.
New entrants
Large enterprises and airlines companies and make their business expand through having
more string resources in which support and transport services. While in entering the international
market of china local market as the company need to make sure for having the better
competition. While having the proper sources in which they can work and manage their working
estimation in sales while for having the better condition in which the work and process for
having the profits (Chammassian and Sabatier, 2020). The customer have been also targeted for
having the new entrant in which they can easily come to know about those things which can
easily make sure for having the customer and keeping the business expansion. The company can
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keep their expansion towards the business online for targeted customer in which they can make
their estimation for sales and having the logistics for which the customer can keep their extends
more about the express business. The company have to work in different countries, regions have
the different local express business. While entering into new market the company need to keep
their main focus towards the many things which could be easier in knowing about the customer
needs and many other requirements.
Substitutes
The substitutes of the SF express that could be having the high products with the
sustainability in which they can work while having Email, fax, telegram, telephone etc. This
might be more important for taking the substitutes products and services for having the better
running towards the succession. This could be seems to be essential in which the company can
easily make their business for having the growth and make sure for those things which might be
organization can keep (van Grinsven and Li, 2020). In general, for document some of things are
to be required which could be important in taking the advantage and that could seal
arrangements, receipt letter and so on. SF should require to keep their proper estimation through
which the customer can easily make their products for using as substitutes and also make sure for
having the better growth for their working estimates. In having the proper estimation about the
sales the business can work and that could be important for which the essential things towards
the product and services. This could be also important in taking their growth and this could also
led for developing their business through using the right things and make their customer
attraction.
Bargaining power of suppliers
The industry suppliers can be various companies such as airline, truck, cartons factories,
packaging factories etc. Therefore, bargaining for the power of suppliers can be different while
due to having the resources which are being supplied. Among all the companies, the express
company have airline with the power suppliers about their products and service. While having
the bargaining about the suppliers in which the company need to understand about the various
thing in which the company can make their requirements (Pavelkova, 2020). In addition,
packaging factories, cartons, manufacturing etc. The power of suppliers for the company not so
much week while for through which they cannot manage their work. Along with this also need to
make their business for having profit in which they have to keep their business success for
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having the better things for which the customer can be attraction. SF express should also keep
their proper process in which the customer can come to know about the power of their suppliers
in which the company can maintain their production and services.
Bargaining power of buyers
As the company should also make their understanding about the better clients and their
customer in which the company can make their power of buyers. While through which the
attraction can be make sure for having the better production and keeping the better services.
While through which this could be important and knowing about those things which could be
important for them and making sources for which SF express could have outstanding advantages.
The organization need to make their buyer strong in which the customer can work and keeping
the high skills for which the sources and make sure in having the attraction towards their
products and services (Kanishchenko and Kuznetsova, 2020). The scales for express market
continues expanding, could led for having high speed development and led for having the better
policies and making their products for their customer. The enterprise should also understand for
their customer in keeping the high quality of products and services in which they can easily have
their better development and that could also led them for making their business expansion.
Innovation of SF express
The company need to make their communication with having channels in which they can
easily make sure for their customer in making their products and services. A strong brand should
also provide the better competition strategies in which the company can easily come to know
about those thing which could keep their better commitment towards the customer (Yang, 2020).
The company can use the various sources for communication such as TV, advertisements,
streaming services and sponsorship in which they can easily make their proper local market
estimation. This could be also important for having better outsourcing in which the company
required to keep their development and make their proper sales. As the company can also make
their business in which the customer can easily make their attraction and keeping the feedback
about their product and services.
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CONCLUSION
From the above report it had been concluded that for having the international business the
company needs to understand more about the customer and market area. While in which they can
easily come to know about the better things and have their terms in which the company can keep
their sale estimation. The organization also need to keep their better option in which the people
and market can easily make their attraction. The market analysis states about the different
situation in which the company can make their business expansion. Porter models can easily
explain more about the competition and easily make sure for having the better policies towards
the customer.
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REFERENCES
Books and journals
Akbari, A. and Ng, L., 2020. International Market Integration: A Survey. Asia‐Pacific Journal of
Financial Studies. 49(2). pp.161-185.
Brolley, M. and Cimon, D.A., 2020. Order-flow segmentation, liquidity, and price discovery: the
role of latency delays. Journal of Financial and Quantitative Analysis. 55(8). pp.2555-
2587.
Chammassian, R.G. and Sabatier, V., 2020. The role of costs in business model design for early-
stage technology startups. Technological Forecasting and Social Change. 157. p.120090.
Chen, S., 2020. An Empirical Analysis of Retail Market Structure: Location, Competition, and
Consumer Out-Shopping.
Cui, R., Li, M. and Li, Q., 2020. Value of high-quality logistics: Evidence from a clash between
SF Express and Alibaba.Management Science. 66(9). pp.3879-3902.
Grönroos, C., 2017. Relationship marketing readiness: theoretical background and measurement
directions. Journal of Services Marketing.
Huang, M.H. and Rust, R.T., 2021. A strategic framework for artificial intelligence in
marketing. Journal of the Academy of Marketing Science. 49(1). pp.30-50.
Kanishchenko, O. and Kuznetsova, Y., 2020. Startup marketing strategy to attract venture capital
at the age of digitalization. Economics & Education. 5(1). pp.23-28.
Karle, H., Peitz, M. and Reisinger, M., 2020. Segmentation versus agglomeration: Competition
between platforms with competitive sellers. Journal of Political Economy. 128(6).
pp.2329-2374.
Li, T., 2020. A SWOT analysis of China's air cargo sector in the context of COVID-19
pandemic. Journal of air transport management. 88. p.101875.
Liu, Y., 2017, June. SWOT research on domestic third-party logistics providers (3PLPs) in
China. In 2017 2nd International Conference on Education, Sports, Arts and Management
Engineering (ICESAME 2017) (pp. 1721-1726). Atlantis Press.
Morais, R., 2019. ANALYSIS OF FACTORS SUPPORTING SWOT IN ORGANIZATIONAL
STRATEGIC PLANNING.STRATEGII MANAGERIALE, p.66.
Pavelkova, D., 2020. Industrial Clusters, Human Capital, and Regional Growth. Business
Clusters: Partnering for Strategic Advantage. p.216.
Sukharev, O.S., 2020. Inflation control and adequacy of targeting to economic growth
policy. Upravlenets. 11(1). pp.33-44.
van Grinsven, B. and Li, C., 2020. OneSource Distributors Cost Analysis.
Western, B., 2021. Between class and market. Princeton University Press.
Yang, H., 2020. A Case Study on Supply Chain Finance of SF Express. Proceedings of Business
and Economic Studies. 3(3).
Zhang, F., Lou, X. and Ning, Y., 2020. The comparative study of China's mega‐city regions: A
perspective of competitiveness. Growth and Change.
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APPENDIX
Reflection account
I learned so many new things by conducting this study as this study helped me out in
knowing importance of SWOT analysis as how it can help companies in making better strategic
decision. I knew that this tool can help in knowing own personal strengths and strengths,
weaknesses of companies as well. In addition, I learned about porter’s five forces analysis model
as how it can help employees in knowing intensity of competition in specific industry or sector.
By knowing all these tools, we can help our companies in development and expanding business
by knowing own strengths and developing strategies accordingly.
I have learnt many new things about the porter five forces in which I come to know about
the various strategies and competitive companies in which the companies are facing issues.
While this might be also important in knowing about the better strategy and direction through
which the business can become successful. I have also analyzed about the company in which
they are facing issues and how they are basically dealing with many situation. In addition, I come
to know about how the company build up their brand images for making more customers and
make sure for having the proper sales revenues. In every cases study the theory and practice
combination make sure for having the better understanding. I have also learnt about the various
curriculum activities and various market decisions in which the company can easily come to
know about their customer while having the business expansion.
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