Tnt Is The Market Leader Marketing Essay

Tnt Is The Market Leader Marketing Essay Introduction TNT is the market leader in the provision of business-to-business (B2B) express delivery services. It delivers documents, parcels and freight securely between businesses, using road or air transport. Ken Thomas founded TNT in Australia in 1946 with a single truck. It became Thomas Nationwide Transport (TNT) in 1958 and TNT Express Services UK in 1978. Today TNT is a global company and serves customers in over 200 countries around the world, employing 10,000 people in the UK. TNT has two operating divisions in the UK. As a global company, TNT seeks to project a consistent image across the world. For example, it uses the global strapline Sure we can on all its vehicles, aircraft and communications material. Back ground TNT N.V. was an international express and mail delivery services company with headquarters in Hoofddorp, Netherlands. In the Netherlands, TNT operated the national postal service under the name TNT Post. The group also offered postal services in eight other European countries, including the UK, Germany, Italy and Belgium. TNTs mail division recorded sales of about â‚ ¬4.2 billion in 2009. The companys demerged express delivery services division, known as TNT Express, has fully owned operations in 65 countries and delivers documents, parcels and pieces of freight to over 200 countries. TNT Express recorded sales of about â‚ ¬7.2 billion in 2011. On 2 August 2010, TNT M.V. announced its intention to split up into two independent companies, an express and a mail company. TNT sold its logistics unit in 2006 to focus on network activities, mail and express delivery services. TNTs networks were concentrated in Europe and Asia, but the group also had operations in the Middle East and South America, and several road freight companies in China, India and Brazil. TNT employed 155,000 people. Over 2009, TNT reported â‚ ¬10.4 billion in revenues and an operating income of â‚ ¬648 million. TNT was officially quoted on the Euronext Amsterdam Stock Exchange unit May 2011. Its major competitors included FedEx, DHL, and national post carriers such as US Postal Service and Royal Mail. TNTs last chief executive officer was Peter Bakker. Other members of the Board of Management included Bernard Bot (Chief Financial Officer), Marie- Christine Lombard (Group Managing Director, Express) and Harry Koorstra (Group Managing Director, Mail). Mission, aims and objectives TNT is the fastest and most reliable provider of express delivery services and is the European market leader. Organizations do not become market leaders by chance. It takes vision, careful planning, outstanding quality and a committed, highly trained staff. This organization-wide planning is known as business strategy. Organizations identify the goals that they want to achieve through: a mission aims clearly stated objectives. Mission A business mission is a statement that reflects its core purpose and principle business aims. It states what the business is, what it does and where it is heading. Employees and other stakeholders who have an interest in the organizations activities need to be able to understand the mission easily. TNTs mission is to: Exceed customers expectations in the transfer of their goods and documents around the world, Deliver value to our customers by providing the most reliable and efficient solutions through delivery networks, Seek to lead the industry by instilling pride in our people, creating value for our stakeholders and sharing responsibility around the world. Aims and objectives The aims supporting this mission focus on efficiently transferring goods and documents, providing customer satisfaction and behaving responsibly. To achieve these aims the organization needs to establish objectives at a number of levels. SMART objectives are designed to ensure that everyone understands what is required and by when. They make it easy to measure performance so that the business knows if and when its aims have been achieved. Where necessary, it can change its plans to overcome any problems or obstacles. Specific exactly what is to happen Measurable by quantity or proportion Achievable capable of being achieved within available resources Relevant to the overall business or corporate objectives Time-related with a deadline attached Measurable objectives cover every aspect of TNTs operations and service. The top-level objective is to achieve profitable growth. Examples of SMART objectives across the business that contribute to this include: Answer 85% of calls from customers within ten seconds. This objective fits with the mission to provide the most reliable and efficient solutions for customers. TNTs customer focus is one of the key ways in which it aims to differentiate itself from competitors. To improve TNTs carbon efficiency by 45% by 2020 (measured against the 2007 baseline). This example of a longer-term objective reflects TNTs aim to reduce the environmental impact of its business. Building a strategy Business strategies are the means by which businesses achieve objectives. They usually take the form of long-term plans relating to the chosen markets, products and environment. A competitive strategy can be based on: having a distinctive position in the market. TNTs market position is based on differentiating itself from rivals through its speed, reliability and provision of services of the highest standard. building core strengths (known as core competencies). TNTs strengths are based on attracting and developing high-caliber staff who are able to exceed customer expectations so that customers remain loyal to the business. TNTs strategies need to take into account a number of important areas. These include: what goods and services to produce, e.g. an integrated delivery service which territories will deliver best return on investment. TNTs international operations focus on key trading areas of Europe, Asia, North America and South America. how to build a competitive advantage, e.g. by providing the most reliable, customer-focused services. Tactics Businesses deliver their strategies through a series of tactics. TNTs practical measures are set out under three main headings Operational Excellence, Customer Relationship Management and Innovation. The map describes the journey that TNT is taking towards achieving the long-term aims. For example: The map shows that Operational Excellence will be achieved through a solid foundation of fast, reliable and quality services. From there, the Customer Relationship is improved by understanding what different customers want. This builds a stronger allegiance and loyalty. Innovation is about anticipating the future needs of TNT customers. Through stronger relationships the business can develop a joint approach and shared vision. TNT segments its customers according to their requirements. For example, some customers provide the company with one off requests. Others are major accounts regularly placing large orders. TNT responds to the needs of each of these customer groups in different ways and hopes for loyalty in return. The market is highly competitive and it is more cost-effective to keep repeat business than to generate new customers. Strategic direction and strategic gaps TNT has high-quality people working within the organization in many different roles. These range from the front-line distribution of parcels and documents to accounts, sales and marketing functions. However, in places, TNT may require additional skills to bridge the gap between its existing human resources and those required to implement the strategy fully. This is referred to as a strategic gap. By developing its people, TNT ensures that it will have the capability to meet and implement quickly any necessary changes in its strategy. TNT is committed to minimizing the environmental effects of its operations and conducting its business in a sustainable way. For example, it recognized the value the business could gain from making drivers more aware of methods of driving which would improve safety and efficiency. Drivers are therefore trained in SAFED (safe and fuel- efficient driving) techniques, earning certificates of competence. Conclusion Creating and delivering an effective business strategy involves: having clear aims and objectives building a competitive advantage by developing core competences Identifying gaps and seeking to close these through development of resources. TNT demonstrates good practice in each of these areas. The company has clear business aims and objectives that are time-related. It focuses on developing competitive advantage through its strategies for customers, innovation and its people. TNT ensures that the people working for the business have adequate opportunities to grow. It meets any gaps in the ability of the workforce to deliver its strategy by training and developing its existing people. This retains their skills and offers attractive career opportunities to recruit new talent. Recommendation TNT should start a new service to pick goods from customer place that will give a competitive advantage over competitors. More sub offices should be open for the ease of customers and for better communication within company. On delivery of goods at destination confirmation message service should be started via e-mail or messaging. Questions What kinds of data can TNT use to build a phylogenetic tree? What is the growth rate of TNT in 20th century? How does TNT become world widely recognized company? What is the company position in the market?