Logistics

Challenges for the industry

The international shipping industry has grown dramatically in recent years. In the long run it is expected that this growth will continue throughout the industry. But whereas the integrators on the whole are still blessed with continuous market growth, other businesses such as the air cargo industry are currently suffering from fierce competition and partly massive price wars, other businesses like the air cargo industry are currently suffering from fierce competition and partly massive price wars.

As performance levels for logistics services are converging more and more, the main challenge of the companies is to keep their own products differentiable from each other, as well as to be differentiable from competition. Service differentiation and brand value are the key success factors of the future, which prevent pure price-based competition.

Some further important trends in marketing are the development of service concepts geared towards specific market segments and highly customized shipping services (contract shipping). Other elements necessary for success in this market include accurate pricing and a modern, effective sales program with a clever incentive plan.

Solutions through Consulting Services

We provide consulting services pertaining to all aspects of marketing strategy. The following activities deserve particular emphasis:

• Accurate and applicable customer segmentation and, as a result, segment-specific marketing and service approaches
• Optimal product design: which features should be included or excluded?
• Pricing (general price strategy, price differences between products, development of entire pricing systems, rebate and discount models, pricing for value-added services, etc.)
• Distribution and sales (sales organizations, compensation plans for sales representatives, etc.)

Our recommendations are based on a solid foundation of quantitative analyses. We research the available market information and conduct our own primary surveys. We then support our clients in implementing the recommended strategies and monitoring the results.

Project Examples

• Profit optimization and yield management for an integrator
• Development of a new pricing system for a cargo carrier
• Optimization of an entire product portfolio
• Product optimization
• Development of an effective sales force compensation system

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