INTRODUCTION TO TCS - TRANZUM We all realize the importance of communication as well as the significance of its speed. Identifying this niche in the market, TCS pioneered the concept of courier services for urgent Air Express Delivery in Pakistan in 1983 for the very first time. Since then TCS has been the acknowledged leader in domestic courier services and has become a generic term for express courier services in Pakistan.
Ever since its inception TCS has continued to lead the courier & logistics service industry in Pakist Pakistan an through through innovat innovation ion,, pionee pioneerin ring g spirit spirit,, commit commitment ment & passio passion. n. Beside Besidess providing tailor-made products & services and maintaining industry standards considered as benchmarks, TCS has continually added products and services for its customers so that it has become the complete delivery solution provider. Today they have the capacity to handle all consumer requirements from the rapid delivery of a single envelope through General Courier to cargo weighing hundreds of tones. TCS Pakistan has also largely helped redefine the very path & direction for the entire industry to follow, by developing the TRANZUM TRANZUM enterprise enterprise,, offering offering services services in diversified diversified industries industries including including express, express, logistics, warehousing, distribution, gift delivery services, mail order, travel & tours, visa drop drop box box,, mana manage geme ment nt deve develo lopm pmen ent, t, even eventt mana managem gemen entt & pub publi lica cati tions ons.. With With its its corporate office in the Middle East (Dubai), the Enterprise has established regional offices in across the globe including South So uth Asia, North America, and Europe.
Today, TCS is the only courier company in Pakistan, which has its own dedicated fleet of cargo aircraft. The aircraft operations of the company are independently owned and are not dependent on any commercial airlines. This brings about a strategic business edge, offering customers a level of service and value, hard to beat by competition. TCS can now rightly claim to possess one of the largest and most advanced air cargo networks in Pakistan giving it the option to alter its own schedule at short notice ensuring that shipments reach destinations on time for the first delivery next morning. TCS ground fleet features 1200 ground couriers with their modern bikes, fleet of vehicles, which include trucks & vans, mobile service stations.
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TCS TCS Ex Expr pres esss Cent Center erss at Jinn Jinnah ah Inte Intern rnat atio ional nal Airp Airpor ort, t, Kara Karach chii and and Alla Allama ma Iqba Iqball International Airport at Lahore make TCS the only courier company in Pakistan to offer a compre comprehens hensive ive range range of courie courierr and logist logistics ics soluti solutions ons all under under one roof roof thereb thereby y facilitating both the civil aviation sector and the airport.
Customers Customers now have the choice of using any of the high quality quality services offered offered at over 245 TCS Express Centre. These outlets dot the landscape across Pakistan with the TCS Local Network comprising more than 4700 passionate and professional people. On a daily basis, customers all over Pakistan avail TCS Ready Booking & Pick up facilities with strength of over 1500 Couriers.
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HISTORY OF THE COMPANY Considering the performance of the company in the past two years approximately, TCS has been transformed form traditional to institutionalized system heading towards new dimensions of progress and technological advancement. In 2005, TCS formed its aviation in order to become totally self reliant. In TCS Aviation, they have recently induced Boeing 737 in its air fleet with a capacity of 15 tons, which is considered as a proof of quality through which TCS is coming up to all its commitments. Followed by this, in 2006, TCS horizontally expanded there operation by forming the
Tranzum Group which which offers offers servic services es in divers diversifi ified ed indust industrie riess includ including ing express express,, logistics, warehousing, distribution, gift delivery services, mail order, travel & tours, visa drop drop box box,, mana manage geme ment nt deve develo lopm pmen ent, t, even eventt mana managem gemen entt & pub publi lica cati tions ons.. With With its its corporate office in the Middle East (Dubai), the Enterprise has established regional offices in across the globe including South So uth Asia, North America, and Europe. TCS opened the first of its kind TCS Mall in Karachi in March 2006. This mall was inaugurated by Dr. Walter Kuemmerle, Associate Professor of Business Administration and member of Faculty Group at Harvard Business School. This mall is providing all the services offered by TCS and Tranzum group namely Sentiments, Visatronix, Octara, Sentiments etc. under one roof, and also facilitating services like, ATM machine and Nadra machine for the payment of utility bills for the sake of providing value and convenience to its customers. TCS also established Mail Management Solutions division & Print shop in 2006, which only deals in bulk quantity of mails for there business clients. TCS is also qualified for Printing & Logistics project of Election Commission of Pakistan for the year 2006-07. It can be said that TCS has grown and has seen turned around situations in its revenue growth during past couple of years and TCS continues to enter into more ventures to maintain its market leadership status with its strong mission of expanding globally.
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SERVICE LINE Tranzum enterprise now comprises:
1. TCS TCS EXP EXPRE RESS SS & LOGI LOGIST STIC ICS: S:
Courier & Logistics Express TCS provides express & logistics services to C2C, B2B & B2C. TCS operates with 157 modern fully equipped delivery trucks, 245 point of contacts, 2000 off-si off-site te locati locations ons nation nationwid wide, e, 4 existi existing ng warehou warehouse, se, 200 light light & heavy heavy vehicles, over 1500 motorcycles & 6 dedicated aircrafts with Boeing 737 and 225 shipments processed per day.
Overland Express Overl Overlan and d Ex Expr pres esss Carg Cargo o Deli Delive very ry Servi Service cess wher wheree bulk bulk ship shipme ment ntss are are delivered door-to-door through one of the largest truck fleets in the organized sector in Pakistan.
Flying Warehouse Offers complete warehousing & distributions solutions.
Sentiments Express A unique unique gift gift delive delivery ry servic servicee that that brings brings an exclusi exclusive ve select selection ion of gifts gifts chosen from the best sources, gift wrapped in exquisite packaging & delivered with an exclusive greeting card having personal messages conveying heartfelt sentiments.
2. INTIANA: Intiana is a full service travel agency providing travel & tour packages and ticketing services.
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3. VISTRON RONIX: It’s a brand that provides visa drop box facilitation service in Pakistan, U.A.E & Canada. It helps visa aspirants through the entire process from providing relevant visa information to filling out visa forms & secures transport of passports to & from embassies.
4. OCTARA: Octa Octara ra is a busin busines esss unit unit dedi dedica cate ted d to provi provide de serv servic ices es to the the corpor corporat ate, e, gover governm nmen entt & NGO NGO sect sector orss thro throug ugh h manag managem ement ent deve develo lopm pment ent trai traini ning, ng, workshops, conferences & event management, publications and public relations and media management services in Pakistan, U.A.E & Canada.
Range Range of servic services es offere offered d includ includee Domest Domestic ic Expres Expresss Delive Delivery ry Servic Services, es, Overni Overnight ght Express Delivery Services, International Express Delivery Services, Overland, Logistics, Cargo & E Logistics Services, Sentiments Express Gift Delivery Services, Customized Courier Project Solutions, Dispatch Handling & Warehousing Solutions, Marketing & Retailing Services, Drop Box Services and Aircraft & Ground Cargo Fleet Charters.
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MAJOR COMPETITORS 1. DHL These are the first letters of the last names of the three company c ompany founders, Adrian Dalsey, Larry Hillblom and Robert Lynn. In 1969, just months after the world had marveled at Neil Armstrong's first steps on the moon, the three partners took another small step that would have a profound profound impact on the way the world does business. business. The founders founders began to personally ship papers by airplane from San Francisco to Honolulu, beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically reduci reducing ng waitin waiting g time time in the harbor. harbor. Custom Customers ers stood stood to save save a fortun fortune. e. With With this this concept concept,, a new indust industry ry was born: born: intern internati ational onal air expres express, s, the rapid rapid delive delivery ry of documents and shipments by airplane.
The DHL Network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Eu Euro rope pe.. By 1988 1988,, DHL DHL was was alre alread ady y pres presen entt in 170 count countri ries es and and had 16,00 16,000 0 employees.
Deutsche Post World Net and DHL Consolidation At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL. By the end of 2002, DHL was 100% owned by Deutsche Post World Net. In 2003, Deutsche Post World Net consolidated all of its express and logistics activities into one single brand, DHL. The DHL brand was further strengthened by Deutsche Post World Net's acquisition of Exel in December 2005. The DHL expertise is pooled from a number of companies acquired by Deutsche Post World Net. To name a few:
Exel: at the time Deutsche Post World Net acquired Exel in December 2005, it had around 111,000 employees in 135 countries. Exel primarily offers transport and logistics solutions for key customers.
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Deutsche Post Euro Express: in operation since 1997 through internal growth and investments investments in leading leading European European companies, companies, network for parcel and express express services services in more more than than 20 coun counttries ries,,
Danzas:
founded
in
marke arkett
1 8 15,
leade eaderr
based
in
for for
busi busine ness ss cust custom omer erss
Basel,
Switzerland,
in
Eurrope. Eu ope.
acquired
by
Deutsche Post World Net in 2000, world leader in air freight and ranked second in ocean freight. Overland transport and supply chain management complete the Danzas service portfolio.
Air Express International: largest American air freight provider, integrated into the Danzas group in 2001.
Services offered by DHL: •
Express Services
•
Logistics Solutions
•
Road and Retail Freight
•
Shipping Tools
•
Industry Solutions
2. FEDEX FedEx is one of the world's great success stories, the start-up that revolutionized the delivery of packages and information. In the past 30 years, we've grown up and grown into a diverse family of companies - A FedEx that's bigger, stronger, better than ever.
FedEx provides access to a growing global marketplace through a network of supply chain, transportation, business and related information services. FedEx - A worldwide network of companies providing customers and businesses with the same "absolutely, positively positively"" zeal for service service you've come to expect. Independentl Independently, y, each company offers flexi flexibl ble, e, spec specia iali lized zed serv servic ices es that that repr repres esent ent the the broa broade dest st arra array y of supp supply ly chai chain, n, transportation, business and related information services.
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Services offered by FedEx:
•
FedEx Express
•
FedEx Ground
•
FedEx Freight
•
FedEx Kinko’s – Office and Print P rint Services
•
FedEx Custom Critical
•
FedEx Trade Networks
3 . OC S OCS was was esta establ blis ished hed in 1957 1957 in To Toky kyo, o, Japa Japan, n, when when a cons consor orti tium um of news newspa pape per r publis publisher herss formul formulate ated d the concept concept of a worldw worldwide ide speed speed delive delivery ry networ network k for their their publications. Their invention was called "Overseas Courier Service Co., Ltd.
Since then, OCS has been providing premium quality express courier, freight forwarding, transportation and logistic solutions worldwide. Major OCS corporate offices worldwide anchor one of the most extensive international delivery systems ever developed.
It was in 1986 that OCS Pakistan (Pvt.) Ltd. first started operations as an independent courier company in Pakistan. In the wee hours of a crisp winter morning, the first express documen documentt was boo booked ked in Karach Karachi. i. What What follow followed ed is histor history. y. Today, Today, OCS Pakista Pakistan n handles tens of thousands of shipments every single day. Within Pakistan, the OCS name has become synonymous with dependability and quality. It has 212 pickup points and more than 1500 delivery locations across Pakistan. Internationally it covers the globe with the OCS network of over 240 offices in more than 90 countries around the world.
OCS is committed to provide high quality services that are reliable, time sensitive and effective catering to all courier needs of both local and international customers.
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Services offered by OCS: •
Road & Rail
•
Pickups
•
Expressions
•
Travel & Tours
4. TNT TNT TNT is the the Eu Euro rope pean an mark market et lead leader er with with a globa globall reac reach h in expr expres ess, s, logi logist stic icss and and international mail delivery services. They make sure your documents, parcels, freight and mail are delivered safely on time using our integrated air and road networks. Their networ networks ks are suppor supported ted by sophis sophisti ticat cated ed technol technology ogy that that helps helps us ensure ensure servic servicee reliab reliabili ility ty and provid providee real-t real-time ime on-lin on-linee inform informati ation on about about the status status of custom customers ers consignments.
Services offered by TNT: •
Express Services
•
Freight Management
•
Express Mobile
•
Express Manager
•
Industry Solutions
•
Express Shipper
•
Express Connect
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TCS MARKET SHARE VIS-À-VIS COMPETITORS
TCS EXPRESS TCS TCS Expres Expres s - Domestic Domes tic market market shar s haree
4%
6%
TCS
14%
Leopard 60%
16%
OCS TNT Others
Total market size: 26.5 million/annum (2008-09)
TCS LOGISTICS TCS Logistics - Domestics market share
9%
7%
TCS
11%
Cargoline 55% 22%
PTN OCS Others
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Total market size: 350 million/annum (2008-09)
TCS INTERNATIONAL TCS - International Market Share
7%
5%
3% 2%
DHL FedEx TCS TCS
18% 65%
UPS TNT TNT Others
Total market size: 5 billion/annum (2008-09)
INDUSTRY GROWTH CYCLE Presently, the courier service industry is at its growing stage because there are many other dimensions besides delivery of documents and parcel, for a firm providing courier services. As, TCS has grown its business by developing a progressive master enterprise,
Tranzum, offeri offering ng servic services es in divers diversif ified ied indust industrie riess includ including ing expres express, s, logist logistics ics,, warehousing, distribution, gift delivery services, mail order, travel & tours, visa drop box, management development, event management & publications. Akin to TCS, there is a great potential for other firms, to expand their business activities, as well.
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EXTERNAL FORCES IMPACT
ECONOMIC ASPECT As Pakistan is an emerging nation with a growth rate of 11.5% it has become an attractive destination for the foreign companies to invest in. This trend is favorable for the courier industry because new companies will start of their operations in Pakistan in nearly every sector, form banks and automobiles to telecommunication etc, they will seek courier services companies to carry out their processes because they want their bills and other important documents to be delivered on time with a proof of deliveries. Besides, GPD is also increasing with its direct impact on per capita income. Per capita income in turn affects the disposable income. With the increase of disposable income the buying power of the consumer also increases, making them switch form the Pakistan postal services to courier service industry.
POLITICAL & LEGAL ASPECT Stabil Stability ity of the governm government ent holds holds a very very import important ant positi position on in the courie courierr indust industry ry because when the new government takes the charge, they develop new legal policies that affect nearly all business environments. In the present government, the monetary system and its activities are fully functional. Access to loans from the bank is now an easy option, increasing the buying power of the common customer and is favorable for the courier service industry.
SOCIAL/CULTURAL ASPECT Celebrating mother’s day and Valentines Day in Pakistan is clear evidence, showing the impact of highly influential American and European culture. Besides this, media and
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foreign channels are changing the life styles of the people, making it faster day by day. Now customers customers demand quicker, quicker, faster faster and reliable reliable services. With these changes in our culture, the courier service industry has to keep pace with the new trends by offering customers the required needs.
TECHNOLOGICAL ASPECT Technology is changing on daily basis offering businesses new dimension to carry out their operation. Similarly, in the courier service industry, technology is playing a very impor importa tant nt role role in prov provid idin ing g fast faster er and reli reliab able le deliv deliver ery y serv servic ices es.. Th Thoug ough h thes thesee technologies demands major investment by the company but in turn deliver productive results in terms of profit and gaining competitive edge.
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SWOT ANALYSIS STRENGTHS
First Pakistan based company to get the title of Super Brand.
A stro strong ng repu reputa tati tion on and and bran brand d name name in the the gener general al publ public ic and and among among the the corporate sector as a reliable and timely source for delivery of goods. Besides this, TCS has become a generic word for courier in Pakistan.
TCS is presently the market leader in the courier services industry of Pakistan with a market share of more than 60%.
For the year 2005-06 TCS has a growth rate of 41% for its revenues and 35% for its sales.
TCS has its own air fleet comprising of six chartered aircrafts including Boeing 737 for delive deliverin ring g goo goods ds within within the state state bou boundar ndaries ies (while (while FedEx FedEx relies relies on commercial air lines).
TCS has 157 vehicles equipped with satellite tracking, which helps the tracking department to track any vehicle in any area of Pakistan.
TCS has its own ware and tare garage for the repair and maintenance of its fleet of vehicles.
TCS is the first Pakistan based company to have a case study at Harvard Business School for the best courier operating in South Asia.
TCS TCS is pione pioneer er in devel developi oping ng it own TCS TCS Mall Mall,, whic which h prov provid ides es valu valuee and and convenience to the customers.
TCS is the first courier company in Pakistan to equip its employees with the hand held terminals, which are directly connected to head office.
TCS TCS also also provi provide de prin printi ting ng faci facili liti ties es to its its clie client ntss not offe offere red d by any any of it competitors.
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It has has a high highly ly prof profes essi siona onal, l, dedi dedica cate ted d and inno innovat vativ ivee work workfo forc rcee of 4700 4700 employees.
TCS has very strong core values.
TCS employees not only listen but understand the customer problems without being defensive and provide solution.
TCS is highly adaptable and flexible in tailoring services to the needs of major customers.
TCS outlet outletss are ideall ideally y locate located d in the densel densely y populat populated ed areas; areas; trade trade areas, areas, industrial, residential and far flung areas, on main roads and in small streets where major customer traffic is there.
As compared to other local competitors, TCS has a wider operational setup. It operates in four countries namely Pakistan, Canada, UK and UAE.
Sentiments Express is very popular among masses and for many customers it is the main source and reason for awareness and liking for TCS.
A nati nation on wide wide cove covera rage ge cons consis isti ting ng of 245 245 expr expres esss cent center erss allo allow w wide wider r accessibility to the company and more convenience to the customer.
All TCS outlets have glass walls on the outside allowing high POS advertising and exposure.
It is a highl highly y reco recogni gnize zed d bran brand d in Pakis Pakista tan n for for bulk bulk ship shipme ment ntss amon among g the the corporate customers. Among the masses its “Sentiments Express” is the main and strongest source of brand recognition.
All TCS outlet outletss are air-co air-condi nditio tioned ned and have adequat adequatee space space for custom customers ers.. Keeping in mind the rush hours, many outlets have two waiting rooms and two or more service counters.
It has a regular participation and representation at major exhibitions and events such as Expo Pakistan 2005 and Leader at Dubai 2006.
TCS TCS has has the the late latest st fax fax machi machine nes, s, prin printe ters rs and scann scanner erss avai availa labl blee in each each department. Every employee has a separate PC to work on which are essentially Pentium 3 or Pentium 4.
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Each courier on the payroll has his own motorbike and cell phone provided by the company. Thus he can easily and quickly contact the company at any time from anywhere.
The frontline workers are polite, courteous and cooperative with the customers.
It operates an official website that is www.tcs.com.pk where all brands by the company and the services offered under the particular brand name have been well repr repres esen ente ted. d. Each Each of thes thesee brand brandss has has a sepa separa rate te web web addr addres esss such such as for for Visatronix the web address is www.visatronix.com .
There is an open door policy for communicating within the department and with the top management. A grade seven employee can communicate directly with his or her marketing manager or even with the CEO without having to follow any hierarchical order.
It has offered highly innovative service offerings such as “Express Tube” for keeping the rolled architectural designs and blue prints.
There are separate skilled couriers dedicated to specific sectors and to some major corporate customers as well.
TCS has a wide corporate customer base of 5000 companies which includes Phillips, LG, Gillette, Reckitt & Benckiser Pakistan, Sony, Indus Motor Company Limited, 3M Pakistan, Samsung, Dupont, Dell Computers.
A customer database is maintained at TCS that allows booking of orders and delive deliverie riess for these these compani companies es after after the offici official al hou hours rs by using using the specif specific ic company’s UAN number.
For each of its brand, TCS has separate marketing departments solely working for a particular brand.
There are no employee unions at TCS.
There is a separate department with the name “Voice of Customer” for conducting research and consumer surveys.
TCS has a sound financial status and because of it a wide capacity for offering diverse services and for entering new markets or developing the existing market.
It has the capability of providing overnight delivery.
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TCS provides warehousing and distribution services to any bulk quantity of order to anywhere in Pakistan.
Information regarding the availability and non-availability of services at certain locations, delivery options and timings are provided on the website in detail which customers find convenient.
WEAKNESSES
The prices of the services offered by the TCS are comparatively higher.
Less marketing initiatives has been taken by TCS to promote all its brands.
TCS is not involved in the transportation of products that require special handling and/or and/or securi security ty such such as explos explosive ives, s, firear firearms, ms, perish perishabl ables, es, antiqu antiques, es, precio precious us metals and stones, jewelry and liquids while many of its competitors are involved in transporting these goods.
TCS has an air fleet that is used for within state movement of goods only. For other other countr countries ies it relies relies on commer commercia ciall airli airlines nes and also also throug through h DHL as a customer.
Online brochures and catalogs of the services are not available on the website.
Except for “Sentiments Express” and general shipment rates the price packages are not given for other services.
There is no information available on the website pertaining to the outlet location addresses and contact numbers in different areas and an d cities of Pakistan.
TCS has a limited operational setup in four countries including Pakistan while DHL operates in 227 countries and FedEx operates in 211 countries.
Despite an increase in the number of online customers for courier services, among other industries, TCS does not provide online booking and payment facility. This facility is available only for corporate customers and not for cash customers
The departments handling different brands are not only totally isolated from each other but also from the core departments such as retail and Human Resources in terms of communication.
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The incentive based employees (those who are paid on commission bases) are not give given n comp compan any y unif unifor orms ms resu result ltin ing g in a los loss of pote potent ntia iall awar awaren enes esss and and acceptance.
Apart from the core services services and “Sentiment “Sentimentss Express” there is a general lack of awareness about other TCS brands among the walk-in/cash customers.
It faces a strong competition in the international cou rier service industry.
For many customers it is a Pakistani brand versus international brands such as DHL and FedEx and for them the international brands are better simply because these are foreign.
OPPORTUNITIES
The major customers of TCS include include Phillips, Phillips, LG, Gillette, Gillette, Sony, Indus Motor Company Limited, 3M Pakistan and Samsung. The increase in the export and import of raw materials and finished products by these companies increases the revenu revenuee potent potential ial for TCS through through bulk bulk shipme shipments nts.. Also Also TCS can work work on capturing many potential corporate customers to earn maximum gains.
As compared to other players in the industry TCS is completely non unionized which is a great opportunity in terms of relative stability of labor costs.
Reduced rates for utilities would decrease the cost o f warehousing.
Thee cons Th constr truc ucti tion on of Gwad Gwadar ar airp airpor ortt and the the avail availabi abili lity ty of own airc aircra raft ftss collectively present an opportunity for TCS to start shipping goods through its own aircrafts outside the state boundaries.
TCS can deal in the shipment of an even larger variety of goods of higher value since the government now allows the goods up to the worth of $5000 to be transported by the courier services.
Lifting of ban on the import of arms and ammunition is another incentive for TCS.
TCS has an opportunity to deal in the shipment of liquids, antiques, precious stones and metals and equipment requiring special handling.
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TCS has a great opportunity in the form of Dubai Gold Festival. TCS has a wide operational setup in UAE. The people who buy jewelry at this festival can be convi convinc nced ed by TCS TCS to send send thei theirr purc purcha hase sess thro through ugh TCS TCS to thei theirr homes homes for for security purpose.
WTO’s free trade agreements increase the potential for shipping to different parts of the world.
TCS being the domestic company is safe from the terrorist activities that may happen against the multinational and international courier service firms.
The increase in trend towards online booking and shipment is a major opportunity to be availed by TCS.
TCS may gain deeper knowledge about its target market by setting up geographic inform informati ation on syste systems, ms, which which is not being being practi practiced ced by its competit competitors ors on the domestic level.
Increasing the awareness of students express would increase its customers among students.
TCS presently does not deal in currency. There are many overseas Pakistanis who can become its customers for sending money to their homes if it starts dealing in currency.
A continued representation in Expo Pakistan 2006 and in the following years, in Dubai Gold Festival and other prestigious events and exhibitions would make the people more trusting in TCS.
THREATS
The rise in prices of diesel, petroleum and jet fuel both on the international and national level is causing a rapid increase in the cost of energy for TCS.
TCS has 1500 skilled couriers involved in delivery of goods all over Pakistan. A future demand for higher wages and/or increase in facilities would again increase the cost for TCS.
Owing to the increase in the use of email, the demand for overnight delivery is declining which is affecting the provision of this facility for TCS.
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The prohibition of sending to P.O boxes causes a decrease in its service range and in turn customers.
Due to some some robber robberss suppos supposedl edly y callin calling g themse themselve lvess as courier courierss the genera generall mistrust among the people may carry over to the TCS customers.
The security and privacy fear related to providing account information on internet may result in relatively low profits in the initial time periods.
TCS promises overnight delivery but with the increase in the use of email and online transfer, uploading and downloading of documents this promise may not remain as important.
MARKETING MIX ANALYSIS PRODUCT TCS offers a wide variety of services under its different brands. It operates in 4 countries, Pakistan being its country of origin; other countries are UAE, Canada and UK. For each of these countries different brands are offered except for “Sentiments Express” which is also offered in Canada, UK and UAE with the same brand name. In Pakistan it offers the following brands:
TCS Service Express
Overland Express
Sentiments Express
Flying Warehouse
1. TCS Service Express: The express service provides different rates for different packages going to different locations & also requires the specific mode of service that the customer would want his/her parcel to be delivered through. The various services offered by TCS Express are as follows:
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The Fastest AIR Express Service:
Same Day Express:
Rely on same day express to major cities country wide, provided booking timings should be checked.
Extra Special Express:
Rush delivery for urgent shipments, provided booking timings should b e checked.
Overnight Express:
It operates for next working day delivery of urgent shipments.
Red Box:
The Red Box holds parcels weighing 2kg, 5kg, 10kg & 25 kg & provides delivery of urgent & bigger shipments for the next working day.
Second Day Express:
If it is not urgent, it is still important, so the second day express takes the second working day parcel option – a 48 hour service.
Third Day Overland Express:
The economical truck service for heavier and bigger shipments, delivers by the third working day.
TCS International Express: As the leader in domestic express delivery industry, industry, TCS offers as an experience of 20 years. TCS is widely trusted & acclaimed for reliability, speed & convenience. With its own international HUB in Dubai, TCS brings its operations expertise to the customer’s doorstep,
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providi providing ng the fastest delivery delivery times times all across the globe. TCS now provides provides the fastest connections worldwide from Pakistan.
Student Express: The service delivers student documents to Universities & Colleges anywhere in the world. Certain requirements need to be furnished at the time of document bookings.
2. Overland Express: Overland Express Cargo Delivery Services delivers bulk shipments from door to door with a fleet of 30 trucks and a staff of 160 people. There are service stations in 11 cities of Pakistan namely Karachi, Lahore, Islamabad, Faisalabad, Multan, Hyderabad, Sukkur, Rahim Rahim Yar Khan, Sahiwal Sahiwal,, Gujran Gujranwal wala, a, and Peshawa Peshawarr and covers covers 127 cities cities.. It is integr integrate ated d online online with with the corpor corporate ate custom customers ers’’ invent inventory ory system systems. s. This This helps helps in managing automatic pickup and delivery as and when required by these customers.
Its major customers customers include Phillips, Phillips, LG, Gillette, Gillette, Reckitt & Benckiser Benckiser Pakistan, Sony, Indus Motor Company Limited, 3M Pakistan, Samsung, Dupont and Dell Computers.
Pharmaceutical companies are its main customers (a market share of 55% which can be further increased if TCS starts dealing in the transportation of liquid chemicals. In the Hitech and auto part companies it has a low market share of 15% and 10% respectively mainly because TCS does not deal in the delivery of those equipment that require special handlin handling g and such equipm equipment ent are dealt dealt in by these these compan companies ies in bulk. bulk. Again Again in the financial institution sector it has a low market share of 15%, as it does not deal in bullion, currency and precious metals and stones.
Overland Overland Express also provides provides JIT, Warehousing Warehousing & Supply Chain Management Management to its customers.
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Other materials that it does not accept for transportation includes:
Liquids
Plants
Stamps
Works of Art
Fire Arms, explosives & drugs
Jewelry
Perishables
Animals
Antiques
3. The Sentiments Express: It is the most popular brand of TCS and the main source of awareness for TCS among the masses. It delivers gifts ranging from cakes, flowers, stuffed toys to personalized gifts. It offers special gift packs for occasions such as Eid, Weddings, Ramadan, Valentine’s day, Mother’s day, Father’s day, New Year’s, Holi, Diwali, Christmas etc.
Mango Tango:
Making the best of the summer season & allowing consumers to send the king k ing of fruits “Mango” to their beloveds abroad in U.A.E & U.K.
Wedding special packs:
Understanding the need for mitthai & cakes, the frangrance of flowers, tokra of fruits, elegantly placed dry fruits, Nikah packs, little baskets of marzi pans, TCS Sentiments Express gives hassle free delivery.
Eid season:
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The Eid season brings with it an array of products for customers to express their love to their family & friends on the sensible occasion of Eid.
Ramadan gift pack:
“Ramadan Gift pack” before Eid was a package introduced that included Ja-e-namaz, prayer beads & almond dates.
4. Flying Warehouse: It handl handles es bulk bulk ship shipme ment ntss of the the corp corpor orat atee custo custome mers rs and many many time timess of walkwalk-in in customers as well. It offers a central warehouse and regional warehouses for overnight deliveries and also about 40 small storage locations. All these warehouses are equipped with security and emergency equipment such as motion detectors and fire extinguishers.
It has imple implemen mented ted a web-ba web-based sed wareho warehouse use manage managemen mentt syste system m integr integrate ated d with with the customers’ inventory system which allows the customer to track the delivery from his/ her destination and also provides support for JIT inventory system.
Flying Warehouse has 6 aircrafts with the latest induction of Boeing 737 and 104 vehicles at its disposal. However the number of couriers on payroll is comparatively lower than needed.
PACKAGING For documents two types of envelopes are available, a large brown colored one with TCS logo and slogan on the top left corner and the web address and call center number on the bottom left corner. The other one is relatively smaller, white colored with red colored back closing flap and a red line border on the front bottom side and brand names under TCS in watermark print above the red line, TCS logo on the top left corner and website address on the top right corner and a space for recipient’s postal address in the center on
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the front and sender’s in the center top of the backside. The watermark print is not attractive and not adequately visible.
For parceling two special types of packaging pack aging is available:
Red box:
This is a special type of packaging used for the next day delivery of urgent and bigger shipments available in the form of 2kg, 5 kg, 10 kg and 25 kg boxes.
Express tube:
This This is a specia speciall type type of packagi packaging ng used used for keeping keeping archit architect ectura urall design designss and blueprints and other large size documents without any folding markks. It is available in 1 kg and 2 kg size tubes. You simply roll the papers and then put them inside. This facility is available at selective express centers in 4 cities of Pakistan only namely Karachi, Lahore, Rawalpindi and Islamabad.
PROMOTION Previously TCS sales activities were driven by the operations but now they are sales and marketing driven. For the purpose of promotion TCS divides its customers into two segments; walk-in/ cash customers and corporate/ credit customers. The cash customers are again again divide divided d into into domest domestic ic and hou househ sehold old custom customers ers and credit credit custom customers ers are divided into banks and other companies. Promotional tools are used according to their suitability and effectiveness for particular customer segments.
For corporate customers: •
Dire Direct ct sell sellin ing g is the the most most util utiliz ized ed tool tool for for prom promot otin ing g the the brand brandss to
corporate clients. The sales representatives of the TCS make phone calls to these
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people and meet with them for informing them about the current and upcoming service offerings and events. •
TCS TCS Conn Connec ectt is the the news news lett letter er of TCS TCS prov provid ides es cove covera rage ge of the the
happenings related to the company on national and international level. Besides the employees they are also distributed among the majority of corporate clients to keep them updated. •
•
Desk calendars are also distributed among these companies. TCS also has regular ads published in prestigious business publications
including Aurora, Harold, Pakistan & Gulf Economist, Friday times, Air World and Business world. •
E-Marketing is another tool which is recently being heavily utilized for
communicating service, pricing and distribution information to them. Informative emails, brochures and catalogs are sent to specific business organizations. •
TCS runs loyalty programs for key customers on a quarterly basis and
also sends some gifts annually and/or on special occasions. o ccasions. •
A wide wide repr repres esen enta tati tion on in semi seminar narss and conf confer erenc ences es and arra arrang ngin ing g
workshops, seminars and conferences in collaboration with the business partners.
For mass marketing: •
Point of sales advertising is the main promotional tool used for attracting
cash customers. Tools used are leaflets, signs, billboards, hangers and posters. The outside walls of all the outlets of TCS are made of transparent glass which allows exposure of the inside arrangement of the express centers including the counter with the TCS logo painted on front. Posters are also pasted on these glass walls. The highest visible promotion at these outlets is the maximum use of red color which is the corporate color of TCS. •
Pena flex Billboards are also used to quite some extent for increasing
recognition. •
Fashion journal are also used for promotion purpose particularly for the
Sentiments Express. 26
•
Vehicles painted in red with TCS logo on both sides, motor bikes with red
boxes on the carriers again with the logo and the standard uniforms of the couriers are used to increase visibility. •
For new campaigns and services, ads are painted on the backdoors of the
TCS vans and Trucks. •
Stalls in exhibitions and trade shows such as ITCN, Lifestyle, Ideas and
Expo Pakistan. •
In case of major campaigns TCS goes for newspaper ads in Dawn, Jung,
News, Daily Times and Nawa-e-waqt. Regular ads are published usually on page 5 of Dawn Newspaper, for ordinary ads Jung newspaper and for major campaigns and products page 1-3 of Dawn and Jung are used.
For internal marketing: Boards and other material objects are used for employees. In the Sentiments Express a MARCOM calendar is used to mention the upcoming events and occasions of the year.
PLACEMENT TCS services are available at Express Centers all over Pakistan. TCS has overall 250 point of contact all over Pakistan. All TCS outlets are air-conditioned and have adequate space for customers. Keeping in mind the rush hours, many outlets have two waiting rooms and two or more service counters.
TCS has an operational setup in four countries Pakistan, Canada, UK and UAE also including Middle East and South Asia and has the ability of delivering in over 200 countries.
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The Overland Express has a ground fleet of 300 trucks and Flying Warehouse has 104 vehic vehicle less at its its disp dispos osal al.. Th Ther eree are are 150 1500 0 couri courier erss all all over over Pakis Pakista tan n with with thei theirr own own motorbikes and mobile phones. For shipment within the state boundaries TCS has its own 6 aircrafts, two of them bought from Russia. For overseas shipment TCS has a strategic allowance with its major international competitor DHL.
The major major areas areas within within Pakista Pakistan n under under TCS covera coverage ge are Faisal Faisalaba abad, d, Gujran Gujranwal wala, a, Hyderabad, Karachi, Lahore, Islamabad, Peshawar, Quetta, Multan and Sukkur. Each area includes the regions located outside the city boundaries for example Gwadar, Pasni and Thatta are considered a part of the Karachi area.
PRICING TCS mainly focuses on Cost based pricing & Value pricing strategies when it comes to the mode of transaction to use in exchange of providing its services. As a service retailer TCS indicates “Quality-Service” to its consumers. As the company deals in consumer requirements such as security & reliability, it guarantees quality-service & therefore is more expensive than its competitors in Pakistan.
SpeedEx, FedEx & DHL being direct competitors have an edge over TCS regarding lower lower prices prices.. SpeedEx SpeedEx being being a Governm Government ent Organi Organizat zation ion and FedEx FedEx & DHL being being International Brands do not incur high costs as compared to TCS (being a private & domestic organization). Therefore TCS charges are higher than its competitors.
TCS identifies its destinations in the form of zones & charges service fees according to those specified zones. On the international scale, countries are also segmented into zones & domestical domestically ly cities are mapped into zones as well. Shipments Shipments within & outside outside zones also depend on the weight of the goods being transferred. They have acknowledged
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standards regarding the weight of the goods being carried & devised pricing strategies accordingly.
PHYSICAL EVIDENCE The outlets all over Pakistan follow certain standards. All outlets have glass walls facing outside and allow complete exposure to the people outside the outlets. The services counters counters are red in color with a TCS logo on the front side side and these counters counters are set up facing the outside walls. On the left side from the entrance is a waiting area and after that on the same side there is desk with brochures, leaflets and catalogs lying on the top and a pen is also there for customers who may have a need for it. All the outlets are airconditi conditioned oned.. Cleanl Cleanline iness ss is strict strictly ly looked looked after after in all the custom customer er contac contacts ts center center.. Employees are highly trained form greeting, welcoming, listening, understanding and providing services to all its customers.
PEOPLE Thee empl Th employ oyee eess are are divi divided ded into into two two leve levels ls;; mana manage geme ment nt and and nonnon-ma manag nagem ement ent.. The management level includes employees from grade 6 to grade 12. At and above the seventh grade all the employees are given cars and other facilities. The non management level comprises of employees below grade six and includes couriers. The couriers are again categorized categorized as incentive couriers and salaried salaried couriers. The incentive incentive couriers are pain on commission basis per delivery. They are not given company uniforms and use their own bikes. The salaried couriers are on the payroll of the company and are given cell cell phones phones and motorb motorbike ikess and the refueling refueling of their their bikes bikes is also also the company company’s ’s responsibility. The employees after hiring are given an orientation and for initial weeks or even a month or two are sent to work in different functional areas to develop a basic knowledge of the work pattern and style. However other such training is not given to an adequate extent. Though Though the courie couriers rs are polit polite, e, well well manner mannered, ed, courteo courteous us and dedicat dedicated, ed, additi additional onal
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training for enabling them to understand customers’ needs, requirements and moods and delivering accordingly is lacking. Again, the couriers working on commission basis do not wear the uniforms and no other signs indicating them to be the company’s employees are there. There is a general lack of information exchange across departments. Each department in TCS is operating as an isolated business division and strongly competing with other divisions. The corporate customers often manage joint inventory systems with TCS. Continuous updating of information from their side helps in ensuring en suring JIT delivery of shipment.
PROCESS In the outlets located in the areas with a large number of customers there are often two waiting rooms and more than one counter. As soon as the second waiting room starts being occupied a second counter is opened. The process starts by greeting and welcoming the customer, taking the order, sending the document or parcel at the ware house, then sorting of the parcels takes place, after that the consignment are loaded on the specific air craft, after reaching the desired station processing takes place, the couriers take the parcel to the desired location and delivers the parcel with a smile. All the couriers are given cell phones so that they can easily and conveniently contact the company whenever required. Within the departments the company maintains an open door policy. The employee can freely communicate with each other and with their heads or even the CEO. However across department and across geographical location there are some problems in communicating information but, an intranet is there for the employees to interact with each other across different departments and divisions. Except for the top
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management an employee in the travel services is unaware of what is happening in the retail or HR department even though many activities in these departments would have a direct influence on their strategies. Another strategy that they are following is that they have have mark market etin ing g mana manage gers rs for for each each brand brand that that are are work workin ing g sepa separa rate tely ly from from the the department. Within the head office all management level employees and many non management level employees are also allotted individual PCs to work on. Latest printers, fax machines, scanners and P3s & P4s are used. TCS TCS also also uses uses ware wareho hous usee mana manage geme ment nt syst system em for for inve invent ntor ory y mana manage gemen mentt that that is integr integrate ated d with with the custom customers ers’’ invent inventory ory syste systems ms to allow allow JIT and effect effective ive fleet fleet management system. A complete database of corporate customers is maintained such that an order can be booked booked even even after after the official official timings timings by using using the UAN number number of the particul particular ar company.
BLUE PRINT OF TCS
ACT 1
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ACT 2
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ACT 3 33
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TCS GAP MODEL
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HIRING PROCESS OF TCS
TCS follows the below mentioned steps mot of the time while hiring employees for their organization. 1. Establ Establish ish Select Selection ion Criter Criteria ia (Emplo (Employer yer)) 2. Advert Advertise ise Vacancy Vacancy (Emplo (Employer yer)) 3. Provide Provide informati information on to prospectiv prospectivee candidates candidates (position (position descript descriptions ions etc) etc) (Employer) 4. Respond Respond to advertis advertisement ement (Candida (Candidate te provides provides CV, CV, applicati application on form etc) 5. Shor Shortl tlis istt (Em (Empl ploy oyer er)) 6. Interv Interview iew (Emp (Employ loyer er and and Candi Candidat date) e) 7. Psychom Psychometr etric ic Asses Assessme sment nt (Candi (Candidat date) e) 8. Refere Reference nce Checki Checking ng (Emplo (Employer yer)) 9. Recomm Recommenda endati tion on to appoi appoint nt (Empl (Employe oyer) r) 10. Negotiate and Agree Agree Terms and Conditions of Employment 11. Employer and Employee commence commence employment relationship
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