Stakeholder Marketing -Meeting Customer needs

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Assignment/Project Front Sheet

CIM Membership Number Unit Title Level/Award Accredited Study Centre

12924755
STAKEHOLDER MARKETING PROFESSIONAL CERTIFICATE IN MARKETING STRATEGY COLOMBO

By submitting this assessment I confirm that I understand and abide by the CIMs plagiarism and collusion regulation.

(Optional) I hereby give consent for my assignment/project, if accepted, to be available for CIM use in relation to dissemination of best practice and, or, other appropriate purposes. It is on the understanding that all studying member numbers would be removed prior to use for the purposes of full anonymity. Tick here to opt out

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Stakeholder Marketing -Meeting Customer needs

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STAKEHOLDER MARKETING

2012 March submission

The Chartered Institute of Marketing

Student No: 12924755 Word Count (Excluding index, appendix and Conclusion): Task 01 Task 02 Task 03 Total : 835 Words : 2268 Words : 1275 Words : 4378 Words

DECLARATION
"I confirm that in forwarding this project for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is the result of my own independent work/investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award. I further confirm that I have not shared my work with other candidates."

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PROFESSIONAL CERTIFICATE IN MARKETING

OPTION ONE MEETING CUSTOMER NEEDS

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Stakeholder Marketing -Meeting Customer needs

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Task 1 Audit findings of Scanwell Logistics Report

Key Customer Groups. Summary of Marketing Mix Scanwell Logistics CRM Strategies

TOPIC

INDEX

PAGE
06 06 07 09 11 14 16 19 20 22 23 24 26 30 31 32

Customer Group impact and Influence Measuring the success of recommendations ..

Analysis and Evaluation of Marketing Mix...

Recommendation of developing the Marketing Mix

Task 3 : Discussion Paper

Concept of relationship marketing..... Analysis of Scanwell Logistics CRM strategies.... Recommendations of improvement.. Cost benefits of recommendation...

Appendix 1 The Organization Back ground.. Appendix 2 Audit.. Appendix 3 Improved Marketing Mix.. Appendix 4 Customer Loyalty ladder & Customer lifecycle value. Reference..

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TASK 1 AUDIT FINDINGS OF SCANWELL LOGISTICS

WORD COUNT - 835

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The organizations have several customer groups such corporate clients, Small & Medium Enterprises, Individuals, Adhoc customer, personnel effect shipment which is one of cases and tourists. However the key customer groups are corporate clients, Small & Medium Enterprises and individuals; Detail summary as below,
SCANWELL LOGISTICS CORPORATE CLIENTS SMALL & MEDIUM ENTERPRISES INDIVIDUALS

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COOPERATE CLIENTS

Are the main profit generating sector for Scanwell Logistics and these customers provide a major share of the business. These clients are strong believers in the value of the service provided by Organization, and will recommend (Advocates) them to other clients. It is very important to cherish these clients This sector of the clients is very valuable to the organizations since they do generate a turnover of over USD 40,000.00 to 45,000.00 on a monthly basis creating a strong profit flow.

the service provided by them. It is needed at asses their maximum potential for further business. In the case of this segment of clients they generate a turnover of USD 10,000 to USD 15,000 on a monthly basis who to generate to the profit grid of the organization

INDIVIDUALS

SMALL & MEDIUM ENTERPRISES

These Clients /Customer do business on a time to time basis but cannot be guaranteed for business since they can change for other service providers. It will be needed to convert to future business Form these Customer the turnover they produce is less, it would be at a figure of USD 5000.00 to USD 8,000.00

This customer can be considered as regular customers who provide good share to Scanwell Logistics and provide regular business several times a Month or Year and is comfortable with

Scanwell Logistics Current Marketing Mix in meeting the customer needs PRODUCT The service is been very specific towards the customers and have not been differentiated accurately as per the customer requirement. Corporate clients do relies on heavily on this service; The organization should be practicing to give the customer exactly what they need from the 3rd party Logistics providers.

PROMOTION

The organizations has not been aggressive on its advertising and promotional work, were it bases a traditional belief in promoting business through sales representatives and through Personal relationship of the management who have regular visit to these clients.

PRICE - The pricing is been decided on the size

and the profitability that could be generated

PEOPLE

The organization staff are well experienced but only the senior managements

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from the customer, Hence Corporate clients do get a attractive rate compared to the other smaller clients who do get offered with high rates which leads in losing the customer.

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PLACE The organization caters to its customers

have professional qualifications such as CIM, CIMA and MBA, were the junior level is lacking on the Professional qualifications; Since the knowledge on the industries is high the staff is highly capable in servicing the customers.

in Sri Lanka through the four branches and the warehousing complex that are located in the region which are close approximately industrial zone and the City.

PROCESS-

have not been differentiated among the customer group in an effective way, however has a basic process of collecting shipment and processing at customs.

PHYSICAL EVIDENCE

the offices of the organization has been up to standards but the warehousing complex is been catered to the customers without the best infrastructure.

Scanwell Logistics CRM in meeting customer needs.

CRM is the process of carefully managing detailed information about individual customers and all customers at Touch Point to maximize customer loyalty. CUSTOMER COMPLAINTS Complains are handled with immediate effect since customers are satisfied if the problems are solved quickly, by doing this they will be much comfortable to give business again.

INFLUENCE ON CUSTOMER SATISFACTION

This is importantly looked at since unsatisfied customers can always spread negative about the organization, Hence sales representatives make sure that they do get feedback from the customer on consignments and ways of improvement will be based on that. This is normally done while visitation to the customer by the representatives or the through phone or email questionnaire.

CUSTOMER RELATIONSHIP

The Importance of the facts that builds great relationship with the organization since all staff does meet with the customers regularly; the staff can be identified as operational and sales representatives. By doing this customers are not only familiar with the senior management but knowns the middle staff as well personally.

Loyalty scheme the reward that is offered by theorganization to loyal customer is the credit period that can be offered to the corporate clientele however this needs to be looked at since most of the SME and individual customers expect a credit period as well. Scanwell logistics has a verity of logistics services and cross-selling is and has been an advantage due to the discounted pricing that are offered to the corporate and SME however this has to be improved by adding more value to the total product. Sponsors ship of events have attracted by a certain segment of customers, however this has be looked at a bigger picture if there are to differentiate the organization from the competitors Page 7 of 32

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TASK 2 REPORT

WORD COUNT : 2268

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T O: MARKETING MANAGER SCANWELL LOGISTICS FROM: MARKETING EXECUTIVE SCANWELL LOGISTICS SUBJECT: ANALYSIS OF THE EFFECTIVENESS OF SCANWELL LOGISTICS MARKETING MIX
IN MEETING CUSTOMER NEEDS

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DATE:

18TH FEBRUARY 2012

The segments has been divided accordingly to their power and interest as shown in mendelows matrix in the appendix 1 on the organizations back ground and as per the illustration. Below it has been identified as the most powerful and interested customer groups for Scanwell Logistics Colombo. 1. CORPORATE CLIENTS 2. SMALL & MEDIUM ENTERPRISES (SME) 3. INDIVIDUALS CORPORATE CLIENTS This customer base overall brings importance to Scanwell Logistics who have been with the organization for more than 4-5 years; an effective relationship marketing will be relied heavily in maintain a good relationship between both parties. This customer base is profitable and loyalty levels will be high due to the business handled; In terms of issues it will always be discussed and sorted without any disputes. IMPACT - Large business generated by this customer base bring majority of the profit from them and they are more of International recognized brand ; in the other hand due to their brand name in the market other customer will know that the service provided by Scanwell Logistics is effective and efficient due to the capabilities in handling tough corporate clients. These customers can be refer the organization to other customer bring added advantage it can be done via word-of-mouth or can be opinion leaders. INFLUENCE This customer base influence with a high levels of buying power and there demand in meeting their standard requirement by the service provided can be very high; They can even apply pressure to organization to obtain certain standards such as ISO 9000. In terms of this clients pulling out the business will have a great affect and losses toward organizations on turn overs and profit which eventually can affect the staff with less salaries and having unsatisfied stakeholders. Therefore the Impact and influence of the corporate clients is high and have great importance.

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SMALL & MEDIUM ENTERPRISES (SME)

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This segment of clients who has been doing business with Scanwell Logistics less than 2 years had generate a average profit for the organization but on the long term these customer can grow to be corporate client in the future; these customer is mostly of Sri Lankan origin; there is a risk where the business can be secured by other competitors there for customer satisfaction is very important to retaining IMPACT This customer base brings and average profit and Losing these customers puts scanwell Logistics at a risky position since they will only have to depend on the corporate clients. INFLUENCE the level of influence will be low due to the profits that they generate and at the same time these customer can be influence by other service providers.

INDIVIDUALS
These customers are who have been with the organization for less than 1 year and there the business that they provide is much less however the profits sometimes can be very low since these are ad hoc customer and do not care about service. These customers bargaining power is less however there is a great possibility where these customers can move to other competitors. IMPACT Is low since they do not have the huge volume to have a great demand on Scanwell. INFLUENCE the influence that they will have the organization will be less; however those moving to other competitors will be high

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ANALYSIS AND EVALUATION OF SCANWELL LOGSITCS MARKETING MIX MARKETING MIX MEETING CUSTOMER NEEDS
- POINTS PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL EVIDENCE -2 -2 +1 +2 -1 +2 +3 + POINTS

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+ Points are based on Strengths of the marketing mix elements Points are based on weakness of the marketing mix elements

PRODUCT The product element describes the bundle of benefits offered to the customer in order to satisfy the customers needs and wants, however sadly it is been graded -1 although the organizations offer variety products such as international logistics management, Customs brokerage , local logistics solutions, warehousing and along with value added services such as packing and labeling. however efficiencies is a low customer are in needs are of a faster turnaround logistics which has been provided only in certain products and service hence it is important that the organization looks into the of these needs to more market oriented and new development on services plays a vital role in improving customer needs. PRICE The mechanism on the pricing is based on the profit and volumes that can be committed by the customer mostly customer who have the buying power does get a lower pricing whilst other gets offered with a average market rate. Corporate clients are give joy of the benefits of attractive rate, whilst the rest have been catered with a competitive rate. Since customer has the ability to choose from different rates such air freight, courier or even ocean freight rates which have been compressed for their convenience, this has been graded as +2

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PLACE -

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Currently the customers are services through the offices that are located in the region and the warehouses been located at close proximately the customers areas, making it easily reachable to the customers with great convenience. Other means of distribution is been done with the sales team who visit the customer at their premises at the customers convenience to sell the service that can be tendered to them and explain the benefits. Existing Customers will be having easy access where they can walk to the service providers offices and warehouses at any time since there located nearby. Therefore all customers have easy access to the service provider and it graded as +3 PROMOTION The idea behind the promotion aspect is to promote the benefits of the services to the target market and the value that Scanwell Logistics holds. The organizations beliefs in Relationship marketing in getting business from their corporate clients and where as Direct Marketing and Word of mouth is the means of obtaining other business. Since relationship marketing plays an important role the organizations has direct contact with the decision makers at all time making negotiation much friendlier than been aggressive on the table. Scanwell Logistics provide seasonal gift hampers to the decision makers and entertaining the customers with lunches and dinner. To gain influence Scanwell Logistics are involved in CSR projects. However in terms of media promotion it has never been promoters in a large way which needs to be looked at. PEOPLE Employee satisfaction is a key a stake holder in the way service is been provided; hence Corporate clients are catered through the Marketing Mangers or the senior management and the rest of the customer group by customer service executives and sale coordinates with the clients at all time. The organization provides Staff Training to develop skills managing clients Performance salary schemes This has been graded -2 since its only the senior and top management that cater to the key customer and even the skills development has not been done for the junior staff which can be harmful to the product and services.

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PROCESS

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This is considered to the way the organization delivers its service to the end customer, hence they are been advised on the process on the consignment of the shipment at regular intervals due to this it has been graded as +1 CSR projects conducted by Scanwell Logistics in providing the free education to children affected by the civil war bring value to customer since they respect the project PHYSICAL EVIDENCE As well all know services are intangible and hence physical appearance plays a key role in satisfying the customer. The physical evidence of the organization is good hence it is graded as +2, few point as below Well maintained office complex Well dressed staff with official attire. Technological based infrastructure has to be geared to the highest in developing faster logistics.

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RECOMMENDATION AND ADDING VALUE TO THE RELATIONSHIP THROUGH MARKETING MIX PRODUCT
The organization to introduce the right relevant service and giving better option with even multiple choices on logistics solutions with a competitive rate structure. The organization can seek the task in creating a value to the Brand and upgrade their services using the technology such as the internet in giving an effective and efficient service. Also in providing the ability to customer to track the consignments by the use of the website. Customers will be having great esurience of the organizations since the product offered is at the best in the market and will not have any hesitations in using the service due to its convenience factor. Customer will find it much easier to check on their shipment through clicking on the web site of the service provider

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PRICE
The Price determines the customers perceived value towards the value of service hence giving the customer a very competitive rate or total comprised price. Pricing methods such a Bundle pricing can be offered to the corporate clients and where as other clients can be offered with Penetrative or skimming pricing methods. Reliable customers can be offered with credit period for the business handle. Offering pricing through internet bring great ease to the customer when they are seeking for rates. Customers will know that Scanwell Logistics is an honest organization that charges at a very reasonable price and who is capable in offering credit periods to them; By doing this they will always promote the organization to other customer who seek logistics solutions which will generate more profits.

PLACE
In Having Scanwell Logistics offices and warehousing located at strategic locations which are easily accessible to the customer will is be a great choice on convenience to them in terms of reach ability. Also by having in-house account managers for the existing customer at the premises of the customers where they will be able to cater the needs of the customer immediately. Customers will feel convenient to work with scanwell Logistics due to the easy accessibility. Availability of customer service executives and Coordinators 24x7 will give a cutting edge against the competition.

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PROMOTION

Sponsoring of events for the clientele or local clubs, direct mailing and giving User trials to the existing customers and potential ones will bring many; also advertising electronically (E-flyers) &newspaper advertisement should be a focus point since these will be direct target to the new potential customer Brings Loyalty which will furnish scanwell as a great brand and will build respect for the user trails that they offer. PEOPLE Developing the staff towards a Pro-Active approach in a friendly manner and having the staff to go through training. Customer will feel the customer service is at its best and will be comfortable to work with the staff without having debates or issues. PROCESS Having a standard operation procedure for each customer will create a better understanding among the employees as they will know proper steps that has to be taken; The use of systems such as the DTI [Direct trade inputs] makes it easier for customer to view the local logistics situation at any current time. By having a good Standard Operations procedure the customer will be handle with great ease from the service provider and customer will be satisfied since there will not be any hazel in the consignment. PHYSICAL Developing the organization infrastructure in IT, warehousing and transport trucking system and having GPRS tracking systems where customers will be in a position to track their shipment via Smart phones or the internet. Giving uniforms to the staff brings a different color to the organizations and it will help customers to identify the service provider and makes them look different from other competitors. Customer will be contented with the new improvements and will see it as additional benefit that will be useful to them.

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MEASURING THE SUCCESS OF TH MARKETING MIX

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Measuring the success of the marketing mix is an important element of an organization; this can be done by the process of collecting and analyzing the data, these data can be acquired from website, sales figures, customer Satisfaction and other methods.

MEASURING THROUGH THE INTERNET With the re-launch of the new website the number of hits on the site can be measured if this turns to be high that shows that there is a high level of existing and potential customers. Customers, who log into the website to track their shipment, can be recorded to measure how many customers make use of the new method and requested for further information. MEASURING SALES Tracking sales is not so difficult, this could be check if there had been new business that have been secure from the corporate clients and to measure the number of consignments that have been handled of the small & medium enterprises and from the individual customer to see if the level of repeat booking. Measuring the Number of enquiries received from advert and ascertain the number of enquires that have been converted to sales. Sales reports of the past can be compared with the with the new reports after the change in the marketing mix MEASURING INQUIRY TEST Online Measuring can be checked through sign ups, downloads of vessel schedules and request forms through the wed bases system Offline measuring can be checked through the monitoring of phone calls and request proposals or even the number of initial meeting that have been done with customer. TRACKING STUDIES Measuring the service tender by the customer service through feedback forms or Questionnaire or even through quality rating system of the service. Through this it can be found the attitude of the staff, Knowledge and
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TASK 3 DISCUSSION PAPER

WORD COUNT 1275

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Analysis of Scanwell Logistics current CRM Program and its recommendations of improvement Prepared by : Julian Diasz

Discussion Paper on

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CONCEPT OF RELATIONSHIP MARKETING

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CRM is a strategic approach concerned with creating improved shareholder value through the development of appropriate relationships with key customer and customer segment. CRM unites the potential of relationship strategies and information technologies to create profitable, long term relationships with customers and other key stakeholders.CRM provides enhanced opportunities to use data and information to both understand customers and co-create value with them. This requires a cross functional integration of processes, people, operations and marketing capabilities that is enabled through information technology and application Payne and Frow (2005) Relationship Marketing is an aspect of modern marketing rather than the traditional aspect of transaction marketing, the differences are between them are shown below TRANSACTIONAL MARKETING Focuses on Single point of scale transaction on recruitment of customers Emphasis on maximizing the efficiency and volume of sales Oriented on product features Short time horizon Little on customer focus Information is a content of communication Low contact with Customer Customer Relationship Lifecycle As per the illustration on appendix 4 CRL indicates growth of customer with CRM Awareness Knowledge Consideration Selection Loyalty The prospect has need or want for the service The prospect passively seeks knowledge about the organization The prospect weigh their knowledge to by the product or not The relationship intensifies as the customer discovers whether performance meet expectations that determines satisfaction The customer experience consistent product / Service quality and develops strong affinity towards the organization RELATIONSHIP MARKETING Focuses on business strategy that seeks long term relationship on customer retention Adds Value to the customer Oriented on product benefits and system solutions Long term horizon High customer focus Information is an product of communication High contact with customer

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Advocacy

The relationship intensified as the customer discovers whether performance meet expectations that determines satisfaction
HELPS IN THE RETENTION AND LOYALTY OF CUSTOMERS.

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DOES CRM

YES !!! When CRM is been practiced it bring continuous support and satisfaction to the customer, Once the customers level of satisfactory develops and to increase they will more up the loyalty ladder as shown in the appendix 01 Customer Relationship marketing is an approach which emphasizes the counting relationships that should exist between the organization and its customer; it emphasizes the importance of customer service and delivering superior service it can help the organization manage customer interaction more effectively and is a critical factor for an organization in recognizing the long term value of the potential and current customers Relationship marketing is rooted in the idea that it is cheaper to retain an existing customer than to recruit a new one; therefore CRM view on marketing is more profitable compared to transactional marketing. ANALYSIS OF SCANWELL LOGISTICS CRM STRATEGIES CSR Project and sponsoring corporate events Since customers honor and value the social responsibility, Scanwell Logistics has it CSR project where they initiate to create an opportunity for quality education for children where families have been affected by civil war which is done in rural area of the country. Customers are taken for visitation on the account of the organization and by doing these customers will be loyal and they will continue in providing business. Sponsoring of events such as local sport clubs, bring respect since customers who attend the events and sees that it has been sponsored by Scanwell Logistics will have respect on the organization and will provide business. Customer Relationship Manager CRMs who will be responsible for the key customer, their duties will be most efficient approach in maintaining and creating relationships with customers to create strong personal bonding with the clients, by developing a good bond it drives business to a new level of success, since it makes the organization to identify the actual needs of customer and help them to service in a better way. The CRMs will always be providing the customers with the services that they hav e to offer and to gain maximum volumes from them in growing the business together.
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Regular Surveys Business success comes from happy and satisfied customers hence by having regular surveys that provides better understanding on what the customers needs a nd wants. Following with customers to check how well their expectations are being met Checking to ensure that the customers are our best advocators Providing customers with regular information Availability of all logistics service. In taking an active interest in the customers they often see this as a positive expression in long term commitment to them in building relationships. Providing Benefits Scanwell Logistics has good rates in logistics and shipping hence by giving very penetrative prices to the customers with a over one month credit periods for the corporate clients, which will be a great deal since customers gets a good pricing and cash flow is at ease since the credit offering; Hence the termination cost of the service will high customer will not intend to get the service from other providers. Employee Training Taking the organization employees to the customers sites and to educating them with the customers needs and wants will be an added advantage since customers will know that the organization is talking business since by educating the employees they will have a pro active approach towards serving the customers better

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RECOMMENDATIONS OF IMPROVEMENTS THE CRM STRATEGY FOR SCANWELL LOGISTICS Scanwell Logistics as an organization does not practice CRM to a great extent however by Introduce and to improving as per the below will bring benefit to the organization. TECHNOLOGICAL METHOD Due to the limited time available to complete the process in the service sector using IT based technology to service the customer such as web based viewing system, Video conferencing which will offer convenience to the customer and will reduce the time sent on traveling. Another media network that can be used is SMS where customer can be constantly updated on there consignments Implication The initial cost that will have to be bear by the organization will be costly but in the long run it will be profitable since certain cost can be cut down. STAFF TARINING Scanwell Logistics can have training programs for their employees to be more customer oriented and to be pro active at their work, by doing this the customer service levels will increase and customer satisfaction will be earned. Implication investing on employee training will bring cost and will be time consuming which can disrupt the work in progress however in the other hand it will give a better productivity to the organization from its staff members who will be working in a more efficient manner.

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CUSTOMER RELATIONSHIP MANAGERS. The organization can key identify and develop a CRM who will be involved in creating effective relationship with customer. Implication selecting the right person will be very vital to the organization since if same person leaves and joins a competitor they will have the advantage of breaking the business since they have developed a good rapport with the customers.

INTRODUCING OF INTERNET BLOG Enabling customer to post comments about the organization making customer service muck easier with the customer

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Cost and Benefits

Increase customer life time value

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All the above strategies will help in development of customer satisfaction, when customers are satisfied it will increase the business resulting in higher life time value. Loyalty Ladder When customers satisfactory levels are high they would move up the loyalty ladder, refer appendix no , Thus making them advocates and partners. Staff Training Staff training should be educated in replying blogs more professionally and effectively since if staffs are not in a position to reply the blogs in a proper manner customer can dissatisfied with the levels of communication

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Appendix 1 - The organization back ground

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Scanwell Logistics Coombo

formed in year 1982 with Its head office

is located in Hong Kong and having 68 offices worldwide; With 4 branches located in Sri Lanka, initially started as a freight forwarding company and now diversified into many areas such as General sales agent for Egypt Air, Air Arabia & Cargo Lux; Subsequently ventured into warehousing & Distribution management, Exports, Imports, Direct Clearance and Services etc. Now employs more than 300 dynamic Team Members and offering a comprehensive range of Logistics Packages tailor-made to meet each customers unique requirements. Whilst developing customer-specific solutions and continuing to expand the services.

Figure 1

BONDED WAREHOUSE Currently Scanwell Logistics operates a Bonded facility of 90,000 Sq.Ft and 20,000 Sq.Ft warehousing. the facility is to cater to suppliers providing raw materials to export oriented organizations; Through this facility The Importer is able to take deliver with immediate without delays.. FREIGHT MANAGEMENT Scanwell Logistics has 68 offices worldwide catering to international Logistics. CUSTOM BROKERS Scanwell Logsitcs has the expertise to handle brokerage whether its Air or Sea freight, transshipment giving the customer the full logistics. REPACKING & LABELING Repacking & labeling is facilitated for export cargo along with bar coding. INLAND TRANSPORTATION Reliable and Competitive trucking services is provided with our own fleet and our contracted transporters who we have build an excellent relationship from the past years. IMPORT / EXPORT HANDLING Once the production is ready to go the full logistics is handled by Scanwell Logistics from the point of loading of the consignment to the loading to the vessel or carrier.

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MARKET SHARE OF SCANWELL LOGISTICS COLOMBO

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OTHERS 10% KUEHNE + NAGEL 12%

MARKET SHARE
SCANWELL LOGISTICS 17%

SCANWELL LOGISTICS EXPO LANKA AGILITY LOGISTICS FREIGHT LINKS HELLMAAN KUEHNE + NAGEL OTHERS

HELLMAAN 15%

EXPO LANKA 19%

FREIGHT LINKS 12%

AGILITY LOGISTICS 15%

Figure 2

Scanwell Logistics Colombo faces with an aggressive competition in the market as shown in the Fig 3. Competitors have an even share of the market segment or greater market of share. Hence it is very important for Scanwell Logistics Colombo to be more market oriented and to gain new customer whilst retaining their currently from the competitors who are all the while pitching for business from these customer. SCANWELL LOGISTIC COLOMBOS CUSTOMER BASE Scanwell Logistics has a verity of customer who represents E xport oriented organizations, General Importers, Essential importers to the country, Agriculture Exporters, Transshipment cargo and others. In Fig 3 shown below is the indicated volume of cargo that has been handling by Scanwell Logistics Colombo.

35000 30000 25000 20000 15000 10000 5000 0

33000 18000

CUSTOMER BASE
25000 10000

6000

8000

Customer Base

Exporters
Figure 3

Essential & FMCG

General Importers

Transhipment Agriculture Products

Others

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Appendix 2 Audit

Stakeholder is a party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations.

FIGURE ONE :: FREEMAN STAKE HOLDER MAP OF SCANWELL LOGISTICS

SRI LANKA PORT & AVIATION AUTHORITY COMPITITORS SHAREHOLDERS CUSTOMERS COPERATE ACCOUNTS SMALL & MEDIUM ENTERPRISES INDIVIDUAL EMPLOYEES MANAGEMENT SRI LAANKA CUSTOMS / MERCHANT SHIPPING , MPORT & EXPORT
DEPARTMENT

CREDITORS SAMPATH / UNION BANK MERACANTILE INVESTMENTS

TRADE ASSOCIATES SRI LANKA FREIGHT FORWARDER ASSOCIATIONS

SRI LANKA PORT & AVIATION AUTHORITY Plays a major role in logistics since all the consignments and move through there channel and decisions they make on pricing can affect the logistics industry. SHAREHOLDERS - The investors is a key factor since the when it comes to funding their presence is highly important however on the other hand they can insert pressure if the profits and low. EMPLOYEES & MANAGEMENT Is a major player when it comes into the service because without the knowledge and experience of the employees the service levels will be down. CREDITORS Due to the large turnaround on cash that is needed to fund the operation on a daily basis hence bankers such as Sampath and Union Bank is of great importance since they offer the organization with over draft. TRADE ASSOCIATES such as Sri Lanka Freight forwarding / vessel operating / transporters associations who set up the standard rates for the market and where other are to go by same. SRI LANKA CUSTOMS They are regulatory body who make decisions in the way the processes are conducted. They have power to halt consignments or operations. CUSTOMERS The organizations has many customer group that help in achieving its goals, hence they are of great importance. Page 26 of 32

TRANSPORTERS TRUCKERS / SUPPLIERS

COMPETITORS The logistics trade has many players in the market hence Scanwell Logistics has many competitors such as Freight Links, Expo Lanka, and Agility who will be continuously behind on the customer base to penetrate and secure business.

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LOW MINIMAL EFFORT

HIGH KEEP INFORMED Financial Bodies Competitors Sri Lanka Customs KEY PLAYERS Shareholders Senior Employees and Managers Corporate Clients SME

P O W E R

LOW

HIGH

Trainees Employees Adhoc Customer Personnel Effect Customer Courier Customers KEEP SATISFIED Trade Associates Sri Lanka port and aviation authority Individual Customers

INTREST FIGURE 02 :: O2. MENDELOWS POWER / INTEREST MATRIX OF SCANWELL LOGISTICS

MINIMAL EFFORT - Trainees will not much have direct contact with the customers since most of the job role will be back stage and they are temporary staff who will be young will work for short periods just to gain experience. Customer just as the Ad hoc , Personal effects & courier customers does not have great importance since this group of customer does not have the volumes and either they are profitable. KEEP INFORMED - There are few groups that has to be kept informed such as the creditors financial sector where the organization should be able to maximize the financial support provided by the bankers; Another group is Sri Lanka customs where there consent should be taken before any proceeding and to be sure that it is within the customs laws and regulations. Where as in the other hand the company should know what their Competitors are doing or what they will be doing in the immediate future. KEEP SATISFIED - Trade associates & Sri Lanka Port & Aviation authority should be kept satisfied since their decisions could affect the logistics operations. Also we have individual customer who provide a low profit but can be of importance in the future hence they should be catered and satisfied although they are not profitable at the moment. KEEP PLAYER -This is an ample importance since it caters the Shareholders who are the investors and will expect the best from organization and at the same time can insert pressure. Corporate Clients & Small & Medium Enterprises are the main profit generators for the organization hence their presence is immense. Senior Employees & Managers is very important to Organization to achieve its objective since the wealth of knowledge and experience they carry.

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THREE KEY CUSTOMER GROUP

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CORPORATE CLIENTS
ACCOUNTS COPERATE CLIENTS SMALL &MEDIUM ENTERPRISES INDIVIDUALS

SMALL & MEDIUM ENTERPRISES

APPROX TURN OVER PER MONTH USD 30,000 USD 15,000 USD 5,000

INDIVIDUALS
No. Employees 500 800 100-150 20 50

No. SHIPMENTS 100 - 135 40 80 15 - 30

INFLUENCE & POWER

COPERATE CLIENTS The Organization caters to the international logistics & serves to cooperate clients who are importers & exporters who has international presence which bring great strength and respect who have been serviced for over five years some extending almost to ten years; Due to the long relationship they have a great understanding. This segment of customers can be considered to be Advocate / Supporters. They generate 60% of their profits hence the influence and impact is very high due to their demands on standards such as ISO certification and pricing cause of the large volume of business that they generate. SMALL & MEDIUM ENTERPRISES These are client who has been working with Organization for a period less than 5 years and have started with low prospective but have grown to medium enterprise. Their interest levels are High but the Power is low since they do not have a demand to insert pressure on the organization However this segment of customers generates a profit of 30% that build on to the organizations goals. INDIVIDUALS These individual customer & companies who are with less than 20 employees; they cannot be depended to generate profits due to their small size hence there is a huge possibility where they can always move to other service providers. These customers can be of future potential to the organization however these individual do not have any hold since there Power and Interest is low. Hence they will have to be satisfied with the service that they getting. These customers do not generate a huge profit but can be a potential and profitable customer on the long run hence it is needed to secure these customers without letting them in moving to other competitors

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SCANWELL LOGISTICS CURRENT MARKETING MIX IN MEETING THE CUSTOMER NEEDS

Product Price Place Promotion People Process Physical Evidence Offering customer such as the corporate and small / medium customer with a tailored logistics solutions services to the cooperate level. Basic level service is provided to the rest of the clientele but which are not specific and does not differ from one to another. Currently offering the best rates in the market through Value-based pricing according to the type of customer base Services are offered with the presence of 68 offices worldwide and 4 branches spread in Sri Lanka and is representative distribute the services at customers premises Currently communicated to the customers via telephone and E-mails. Employees and the management is involved direct with the customers while they are serviced as per requirement. Meeting customers on initial appointment to gain knowledge of the process. The presence of the organizations own building with the advance technology systems create a value to the customers

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CUSTOMER RELATIONSHIP MARKETING Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes The overall goals are to find, attract, and win new clients, nurture and retain those the company Scanwell logistics over all when considers does not practice CRM at large. However to retain the existing customer base who generates a profitable revenue to the organizations has to have a good CRM to cater to the customer needs TAILOR MADE SOLUTIONS - Creating solutions as for the requirement needed gives much help to the customer due to the easiness to confronting their logistics needs. DIRECT CONTACT Creating key account customer service executives where customers are comfortable to confront them on any situation hence employees catering to the customer requirement directly ensuring a proactive service SALES REPRESENTATIVE Representatives regularly visitation which builds the understanding between customers & sales representatives making it easy to communicate on new product development and issues that rise from day to day operations. SENIOR MANAGEMENT INVOLVEMENT with the customer makes them satisfied as for the interest shown by the organization TEXT MESSAGES AND EMAIL ALERTS Improving the process by immediately notification to the customer on the consignment status which is done by the customer service executives even by the use of smart phone creating a rapid and efficient service. Page 29 of 32

Appendix 3 Improved Marketing Mix

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Appendix 04 Customer Loyalty Ladder & Customer lifetime value

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BENEFITS FROM PRACTICING CUSTOMER RELATIONSHIP MARKETING

STRENGTH OF CUSTOMER RELATIONSHIP MARKETING CREATING AND MAINTAINING RELATIONSHIPS

Provides value to the customer Emphsis on customer retention In the long-term customers may initiate free word of mouth promotions bring new business to the organization In the long term customers are less likely to switch to competitors making it more difficult for competitors to entre

These strategies will result in high level of repeat booking on logistics services with the organization and improves communication between the customer It will costs less to serve long term customers Loyal customers will pay a price for the service tendered. Easiness in business transactions and solving issues.

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REFERENCE

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Principles of Marketing:; 13th edition {A south Asian Perspective} :: Philip Kotler |Gary Armstrong | Prafulla Y.Agnihotri |Ehsan ul Haque Marketing Management:: 13th Edition {A south Asian Perspective} :: Philip Kotler | Kevin Lane | Abraham Koshy | Mithileshwar Jha Professional Certificate in Marketing Stake holder marketing Strategy www.12manage.com http://www.rehavapress.com http://bridge2peace.org www.scanwelllogistics.com

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