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Dhl Case International Marketing

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Dhl Case International Marketing
Case Assignment Questions
DHL Worldwide Express

1. How do customers purchase air express services? Are there differences between documents and parcels?
Yes, there are differences. There are two principal types of customers. First, there are the people who base their decisions depending on the level of satisfaction that the shipment company’s current customer base have. They are not price sensitive and because it is easy to anticipate their purchase volume and shipment, it is easier for DHL to come up with a base price. However, there are customers whose destinations are not foreseeable. Hence DHL cannot set their discounts properly on the basis of anticipated volume for these customers.
Customers purchase air express service based on the carriers standing in the market place, specifically that are well-received and well-respected by their own customers, both external and internal. Many of them are price sensitive as well as very service sensitive.
Customers split their air express service requirements among several firms – usually between 2 or 3 three preferred providers. Parcel services are scrutinized for best cost options and often discounts and annual contract are negotiated on anticipated volumes by the purchasing department. Large companies consolidate these shipments and put up the business for bid soliciting proposals from interested parties, the decision of service provider is taken by the VP – Logistics,
Yes, there are differences between documents and parcels.
Documents are non-dutiable and non-declarable items and mostly comprised of inter-office correspondences, computer printouts and contracts. Documents had no commercial value at all. They are also light weight shipments managed by the individual or their secretaries.

Parcels are usually non-document items that have a commercial value and/or need to be declared to the customs authorities. Typical items would include prototype, samples, spare parts, diskettes and videotapes; had

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