KIET School of Management
COURSE MBA, IV SEM, Assignment No.-WFM (2019-20) Even Semester Marketing of Services (KMB
MK04)
Vaibhav Singh
1802970105
Q: - Generate a report on Current Trends in Service Industries?
Current trends in the global financial performance industry: -
Quality of services and operational excellence
Accelerating developments have brought about the need for higher quality
services and operational excellence. Financial services organisations must
simplify processes, upgrade IT systems, share resources between business
lines, and adopt more subcontracting and/or relocation. Success will often
rely on a broader vision and a stronger focus on execution.
Innovation and commercial efficiency
Financial services firms must pursue all potential sources of revenue. Product
innovation must be accompanied with faster time to market. Improved
commercial efficiency demands continually evolving distribution models and
more professional staff. The penetration of new markets requires an agile and
pragmatic policy of partnerships, joint ventures, or acquisitions.
Steering performance and controlling risk while supporting
compliance
Financial services firms must steer commercial and financial performance while
controlling risk in an overly complex regulatory environment. Along with this, the
need for relevant and reliable information increases by the minute.
Market Size of Service Industry
India USA China
15.4% 8% 7%
Agriculture (53%) (2%) (26%)
23% 12% 40%
Manufacturing and Industry (22%) (19%) (28%)
61.5% 80% 52%
Services* (25%) (79%) (46%)
Q: - Analyse one service industry as per your choice (Hospitality, Telecom, Health, Financial,
Consultancy, Education, Logistics, NGO, Public Utilities) and explain its role in GDP of India.
Ans: - effective flow of goods and other commercial sectors depend on it. Logistics industry in India
is evolving rapidly. It is the interplay of infrastructure, technology and new types of service providers,
which defines whether the logistics industry will be able to help its customers reduce their costs and
provide effective services. Despite weak response, the logistics industry continues to witness growth
owing to the progress in retail, e-commerce and manufacturing sectors. The Global Logistics sector
was expected to grow 10 to 15 per cent in 2013-14. Logistics industry is expected to reach over $ 2
billion by 2019. Rise of e-commerce logistics and increased domestic consumption will pave the way
for the industry to grow further in future. With the promise of steady growth and improvement, the
service-oriented logistics industry is ready to expand beyond the horizons in the latter half of this
decade.
Recent Scenario
The recent Indian logistics sector comprises inbound and outbound segments of the manufacturing
and services supply chains. Of late, the logistics infrastructure has gained the much needed boost from
business houses as well as policy makers. Managing the infrastructure to effectively compete with
other industries has not been given its due emphasis. Inadequate logistics infrastructure can create
bottlenecks in the growth of an economy. The logistics management regimen has the capability to
overcome the disadvantages while providing cutting-edge competitiveness in the long run. There exist
several challenges and opportunities for the sector in the Indian economy.
Challenges Faced By The Recent Logistic Industry In India
The biggest challenge faced by the industry today is poor integration of transport networks,
information technology and warehouse & distribution facilities. Regulations existing at different tiers
are imposed by national, regional and local authorities. However, the regulations differ from city to
city, hindering the creation of national networks. Trained manpower is essential for the third party
logistics sector and the manufacturing and retailing sectors. It is lacking at the IT, driving and
warehouse as well as at the higher strategic level. The sector is in a disorganized state in India. The
general perception of logistics being a manpower-driven industry and lack of adequate training
institutions have created crisis of skilled management and client service personnel. Poor facilities and
management are reasons behind high levels of loss, damage of stock, mainly in the perishable sector.
The problem arises mainly because of the absence of specialist equipment, like proper refrigerators.
Lack of quality training is another reason. Though practitioners and academicians are slowly
becoming aware of the importance of logistics and supply chain, however, the field is still not
adequately explored as far as research is concerned. It is essential to prioritize research and
development so that the weaknesses in the industry can be taken care of and improved.
Solutions To Some Of The Challenges
Infrastructure is the backbone of every country’s growth and prosperity. The same is true for the
logistics industry. Emphasis should be laid on building world-class road networks, integrated rail
corridors, modern cargo facilities at airports. Logistics parks should be set up and accorded a status
equivalent to Special Economic Zones. It is necessary to realize that the logistics industry can best be
benefitted if companies establish training institutions to improve the service quality of the sector.
Good storage and warehouse facilities are important for the growth of the industry. With increase in
the transportation of perishable products, the logistics agencies need to give a lot of importance to
enhancing the warehouse facilities. Emphasis on research and development is potent because it
encourages the use of indigenous technology, which can make the industry cost-effective and can also
bring about improvement in services.
Future Prospects
The logistics firms are moving from a traditional set-up to the integration of IT and
technology to their operations to reduce the costs incurred and to meet the service demands.
The growth of the Indian logistics sector depends much upon its soft infrastructure like
education, training and policy framework as much as the hard infrastructure. To support
India’s fast-paced economy growth logistics industry is very essential. It is estimated that the
industry will continue to grow at a robust rate of 10-15 per cent annually.
The global economic outlook and that of India is expected to significantly improve as India
Inc begins to tackle the economic downturn. With a new government many policies are
expected to be implemented, which will give a fresh impetus to India’s growth engine,
particularly in the corporate and small and medium enterprises (SME) sector, which in turn
will expand demand for the logistics sector.
With the implementation of GST, companies, which currently have small warehouses in
several cities, can just set up a few in specific regions, following the hub-and-spoke model
for freight movement from the warehouses to the different manufacturing plants, wholesale
outlets, retail outlets and various POS. The growth is backed by the boom in the e-commerce
sector and expansionary policies of the FMCG firms.
its role in GDP of India (logistics firms)
Logistics Services in India is a prominent sector in terms of contribution to national and state
incomes, trade flows, FDI as well as employment. Considering the huge contribution of logistics and
transportation in economic growth, approx. 14% of the Gross Domestic Product (GDP) is spent on
transport and Logistics sector in India in comparison to 8 to 10% in other developed countries. Indian
Logistics and Transportation sector comprises of Rail, Road, Water and Air Transport.
Increased investor interest across the sector, especially in the warehousing service has surged the
private investments over the years along with huge foreign Direct Investments. The warehousing
industry in India is worth INR 560 billion in 2017 and is growing at a rate of 10-12% every year. This
growth in Indian logistics and warehouse industry is led by various factors such as - Implementation
of Goods and Service Tax (GST), growth of e-commerce and digitalisation, growing domestic
consumption, increasing international trade and growth in private and foreign investments in
infrastructure.
Source: Market research, analyst report on Booming warehousing sector in India
Global Trends
As per the global scenario, Global transport and logistics sector (T&L) sector is expected to
reach to US$15.5 Trillion by 2024 at a CAGR of 7.5% with Asia-Pacific region accounts for nearly
47% of the global T&L industry.
In terms of volume, global transport and Logistics sector was valued at 54.7 Billion tons in
2015 and is expected to reach 92.10 Billion tons by 2024.
Indian Scenario
As per the Economic Survey 2017-18,
Indian logistics sector provides livelihood to 22 Million People and is expected to reach US$
215 Billion by 2020.
Logistics Industry revenues accounts for US$ 160 Billion in the year 2017-18 and is expected
to touch US$ 215 Billion by 2020.
Study highlights that improvement in logistic sector will result in 10% decrease in indirect
logistics cost and 5-8% growth in exports.
As per a recent study conducted by the World Bank, India has jumped 19 positions in the Logistics
Performance Index (LPI) and now ranks at 35th position worldwide in 2017 as compared to 54th in
2014
Logistics sector as a whole contributes nearly 5% to the Indian economy. During 2016-17, Logistics sector
share in Gross Value Added recorded as Road Transport (3.14%), Railways (0.77%), Service Incidental to
Transport (0.75%), Air Transport (0.15%), Water Transport (0.05%) and Storage (0.05%) (Source:
MOSPI)
Q: - Create your own company in the same industry, discuss the services which you are
offering.
Ans :
1. distances and time between the locations mentioned on the tracking statement.
2. the role that each leg of the journey plays (e.g. pick-up, delivery, etc.).
3. Identify the mode of transportation that is likely used.
4. the routing between origin and destination (e.g. how much of a straight line between origin
and destination).
5. the efficiency of the routing (e.g. why the company likely chose this routing).
DHL Example:
Date/Time Activity Location
Wednesday
10:04 am Shipment information sent to DHL
4:00 pm Picked up ROGERS, MN
5:54 pm Arrived at DHL location ROGERS, MN
Thursday
1:37 am Left DHL origin facility ROGERS, MN
Sunday
3:47 pm Arrived at DHL location HAGERSTOWN, MD
9:34 pm Departed DHL location HAGERSTOWN, MD
Monday
4:52 am At local DHL facility NORTH WALES, PA
7:30 am On DHL vehicle for delivery NORTH WALES, PA
1:56 pm Delivered VALLEY FORGE, PA
Q: - Develop the 3Ps strategy for your own company.
ANS: -
People:
DHL has links with more than 220 countries and engages more than 300,000 employees to
provide reliable and fast service to its consumers. DHL also engages its employees in
various training programs developing their communication skills and other skillsets. DHL is a
people centric company focusing on its employees as well as its customers.
Physical Evidence:
DHL establishes its identity through its popular logo yellow in colour with DHL written over it
red colour font. DHL also paints its logo over its delivery trucks, buildings and packaging
materials. It also pays great deal of attention to brochures, website, business card etc.
Process:
DHL uses soft trans program to measure the time required for cargo handling. The
information gathered is used to inform the customer about their freight. Questionnaires are
used by the company to measure the customer satisfaction. Customer visits and sales
reports are recorded through I-sell program. DHL also has special services for different
industries depending on the industry. High cost is incurred to maintain the customer loyalty
even in case of mistake committed by the customer. This summarizes the entire DHL
marketing mix.
