소개글
[경영학] DHL 가격정책 분석(영문)에 대한 자료입니다.
목차
목차
1. How do customers purchase air express services? Are there differences between documents and parcels?
2. What are DHL’s strengths and weaknesses compared to its competitors?
3. How does DHL set the price?
4. What are the pricing challenges confronting DHL?
5. Should DHL offer worldwide contracts?
본문내용
Weaknesses : Although DHL has provided value added services- like computerized tracking, 24-hour customer service every day of the year, and proof of delivery service- , there are obvious limitations. It is expensive to provide service and customers using that service were often not always charged extra because of cheaper price in competitors.
And including new segment, it is very hard to handle new segment’s scope. Because they expand their business all over the world, it could be connected to charge expensive price. We would know this fact through price on selected routes.
Service DHL TNT FedEx UPS
1 kilogram document
London-New York 51 47 50 44
2 kilogram document
Brussels-Hong Kong 131 143 118 97
3 kilogram document
Singapore-Sydney 120 120 39 34
3. How does DHL set the price?
In the pricing step, there are the basic factors to consider. The factors of being reflected to set the base price are four : product(service), weight, origin, destination. Basically setting pricing authority is decentralized, thereby DHL’s country managers had almost total control pricing. They typically set prices based on four factors : what the market could bear, prices charged by competition (which was often initially the national post office), DHL’s initial entry pricing in other countries, and DHL’s then-current pricing around the world. With four factors, negotiation occurs between customer and sales rep. First the customer solicited proposal which incorporated the following informations : transit times, overhead rate structures, rates for specified countries, tracking capabilities. Sample tracking reports, sample annual activity report, and a list of internal stations ( indicating which were company-owned versus run by agents). After checking the proposal price would be decided by following discounting powers.
Class of position Power of determine discounting rate
DHL’s sales reps Up to 35%
DHL’s sales managers Up to 50%
DHL’s regional sales manager Above 50%
DHL’s vice president of sales Over 60%
Whenever deciding the price, Sales rep submit PSA (Preferred Status Account). Then management check the financial implications, competitive and capacity factors.
In the pricing structure, there are three approaches ; monthly handling fee, frequency discount, and loaded half-kilo.
First, DHL charged a flat monthly fee to customers who wanted to be included on its regular pick up routes. The purpose of monthly fee is that DHL lead the customers to use all of company’s all process within a certain period of time, but if customer wants all of DHL’s service, customer pay only about pickup costs. Under this approach, when effective marketing conducted, it plays a great roll. It cannot drive customer loyalty because there is no worry about volume discounts.
Second, DHL charged frequency discount structure. That is the more often a customer used DHL during a given month, the cheaper the unit shipment cost. Under the frequency discount structure, a customer did not pay a standard monthly route fee. Comparing to FeDex, FeDex forecasts expected volume of shipment, but DHL consider accumulated shipment.
Last, Loaded half-kilo is similar to frequency discount structure, but difference of that is Loaded half-kilo considers weight rather than number.
4. What are the pricing challenges confronting DHL?
Through our discussion, First we think that DHL cannot create