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Executive Summary

The focus of the strategic marketing plan would be to outline a strategy for the TNT company, which

is a very well known courier company. This company has managed to gain success in the past but it

is apparent that in placed like Malaysia, the company is undergoing heavy competition from various

other courier companies. Increasing competition, lack of innovation and high pricing are all factors

that are contributing to the low performance of the TNT company in Malaysia. What is apparent here

is that the success of TNT is now under threat as there is immense competition and also lack of

efficient marketing at the company in Malaysia. The primary aim of the strategic marketing plan

would be to make a proposal of a strategy to make the firm very competitive through capitalizing on

its strengths and taking advantage of its opportunities. The firm provides a courier related services

and the aim of the report would be to focus on their express courier service that concerns the courier

of documents, parcels as well as packages inside and outside of Malaysia. The strategic marketing

plan outlined its mission and vision, their strategic objectives as well as a deep analysis of their

micro/macro environment. The firms key success factors would be examined and the macro-

environmental analysis would likely to bring out trends as well as relevant information which would

then be subject to examination of the present state of the market, its industry and also various

relevant data that can help to pave the way for the recommendation of a marketing strategy for TNT.

Among the conceptual frameworks that would be used include SWOT and PEST. It is stated here

that the implementation of the strategy is likely to assist the company to address issues and

challenges so as to make sure that there is survival for the following 3-5 years.

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Table of Contents

1.0 Introduction

2.0 TNT Corporate Profile

3.0 Mission of TNT Malaysia

4.0 Vision of TNT Malaysia

5.0 Strategic Marketing Objectives

6.0 Key Success Factors for TNT Malaysia

7.0 Macro/Micro Environmental Analysis for TNT

7.1 MICRO Analysis

7.2 MACRO Analysis

7.3 TNT SOWT Analysis

7.4 Final Analysis for Macro/Micro Environment of TNT

8.0 Strategic Thrust

9.0 Developing Medium Strategic Options

10.0 Financial Analysis for TNT

11.0 action plan

12.0 Conclusion

13.0 References

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1.0 Introduction

The strategic marketing plan is concerned with TNT’s express transportation services and there

would be an analysis of relevant factors and components of the strategic marketing plan for TNT will

be outlined and to be aimed at giving way to a sort of strategy which can help this division of TNT

so as to become very competitive in Malaysia. It is apparent that with the presence of other

competitors, both large and small, TNT face a hard future in the event that they do not make

improvements to their marketing strategy.

2.0 TNT Corporate Profile

TNT Express Services can be outlined as being a sort of courier service company that was originally

premised in the UK and now it has a presence in most parts of the world, including Malaysia. The

primary specialization of the company would be to provide global express, logistics and mail

services all over the globe. The company is now getting an increase in the amount of annual turnover

but of late, the financial performance of the company is thrown into doubt due to high competition in

the market (TNT.com – Company Profile and Information, 2011).

3.0 Mission of TNT Malaysia

The very first mission pertaining to the TNT company would be to pave the way for enhancements

pertaining to the services offered by customers and this is so that these customers can obtain very

high quality. It is this that is noted to comprise of the primary mission of TNT. In line with this, the

company is focused on providing a number of highly efficient express and logistics solutions that are

focused on a number of local techniques and expertise that are synergized with TNT’s vast global

presence (TNT Group.com – Business Mission, 2011).

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4.0 Vision of TNT Malaysia

With regards to the vision of the company, it is appreciated here that the vision would be for the TNT

company so as to exceed customers expectation when it comes to couriering customer goods and

documents all over the world. TNT has the vision of delivering value for their customers and this is

done by giving them very reliable and efficient solutions relating to distribution and logistics. What

can be stated here is that TNT are noted as being leaders in the industry and this is done by instilling

pride in their people, and this is done through creating value for their shareholders and also via the

sharing responsibility in all of the world (TNT Group.com – Business Mission, 2011).

5.0 Strategic Marketing Objectives

In relation to the strategic marketing objectives of TNT, it is to be noted here that these marketing

objectives are reachable and they are also logical. The objectives would be as follows:

Qualitative:

The main objective of TNT Malaysia is to expand in the market. Because of the intense competition

in the market such as DHL, FEDEX. So they allow for the increase in the total amount of market

share that is currently held by TNT by about 5% by the end to of 2012. And by providing the best

service and the most speed and commitment to competitive prices compared with competitors.

As regards the services provided by a company that works to increase customer satisfaction .. The

company is giving special discounts to members and to provide tracking services on the Internet and

other services increase customer satisfaction

1. Quantitative:To allow for the increase in the total amount of sales revenue that can be obtained from TNT

Malaysia’s express transportation service division by up to 18% towards the end to 2012

Financial:

The main goal of each company is working to increase the proliferation in the market, which in turn

will lead to increased income and profit of the company. The company has developed a specific

strategy to reach a higher level of proliferation in the market

TNT Malaysia’s financial objective is to increase profit by using the selling technique of more

selling to maximize profit. The company not only wants all the financial benefits but is wants to

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serve people & by charging less. The more the people get use of that, the more profit could be earn

by the company.

Marketing:

TNT Malaysia’s one of the most important objective in the market is to ensure the highest level of

service and customer care. Also including:

Extensive countrywide coverage

Focus on capacity expansion

Competitive advantage over competitors

Improved distribution channels

Launching of customer relationship programs

Make popular the easy load

Introducing new packages

Achieve effective brand awareness within consumer market and in business market

6.0 Key Success Factors for TNT Malaysia

There would now be an outline of the success factors that are of relevance for TNT. It is these

success factors that are noted to responsible for changing TNT towards being highly successful. TNT

are required to give attention to these critical success factors when they are forming their strategy.

One of the first success factors for TNT would be their innovation and it is apparent here that TNT is

a company that is well acknowledged as being a very innovative force in the industry and it is noted

here that the company’s achievements are well recognised with a very prestigious business accolade

and that is the Queen's Award for Enterprise (Innovation category) (TNT.com – Company Profile

and Information, 2011).

The following success factor comes in the form of TNT’s corporate culture and apparently TNT

encourages a sort of 'home grown timber' policy when it comes to promoting. Apparently, the firms

largest achievement is them continuously finding very innovative ways so as to bring the best out of

their people. The other success factor for TNT is customer satisfaction and apparently, enhanced

customer satisfaction would be noted as being very essential for TNT so as to maintain its position in

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being the market leader in business-to-business express delivery (TNT.com – Company Profile and

Information, 2011).

Finally Innovative by offering a range of special services we can help the customers solve any

distribution problem they may face, get the most out of their communi-cations, and increase the

reach and effectiveness of every mail shot. That's why we see mail as a communication medium, one

that competes with radio, television, the Internet and other media. Given such stiff competition, our

customers have every right to expect us to be innovative. And that we are innovative can be seen in

our products and processes. TNT Post is constantly on the lookout for new ideas and new ways to

enhance the effectiveness of mail as a communications medium. The 200 years of knowledge and

experience we have gained in the Netherlands is helping us and our customers to make strides in

Europe today.

7.0 Macro/Micro Environmental Analysis for TNT

In this part of the plan, there would be an analysis of the internal and external environment for TNT

Malaysia. It is noted that the analysis is very significant due to the fact that the information that is

gathered can be used to become the foundation of the marketing strategy that would be

recommended for TNT so as to enhance its services. The is likely to help the strategic managers for

TNT to determine matters of concern for TNT, the very apparent trends that are present in the

environment, the various opportunities as well as threats facing TNT. This would likely to make sure

that the correct information can be obtained to help achieve the strategic objectives for TNT.

7.1 Micro Analysis

FACTOR DESCRIPTION

COMPANY TNT Post, originally a Dutch company, is

continually expanding its network. "As the European Mail

market is moving towards full liberalisation, TNT Post is

well positioned to play an important role

Across Europe, TNT Post is busy building its distribution

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network. Whatever country we are in, our customers can

expect a proactive approach with high quality standards and

competitive pricing. And a partner in business who rises to

the challenge of delivering the right solutions for our

customers.

CUSTOMERS

TNT acquired 25% of market share. They wants to grow

from 25% in the year of 2010 to 35% in 2011-2012. In

Malaysia,

TNT Malaysia recorded a 19 per cent growth in revenue last year, from a year earlier

COMPETITORS

an international competition by TNT to increase awareness

amongst the tens of thousands of own drivers and sub-

contractors to engage and encourage them to drive both

safely and more fuel efficiently.  TNT’s most efficient TNT

pick-up and delivery (PUD) driver in Malaysia was selected

to represent TNT South East Asia, to compete

internationally in TNT’s Drive me Challenge in the United

Kingdom in September. This competition, which was held

at Metro Driving Academy in Puchong is part of TNT’s

comprehensive environmental initiative, Planet Me, which

was launched in 2007 to reduce TNT’s carbon emissions.

SUPPLIER/

PARTNERS

This partnership immediately improves service level for

business customers in these markets in terms of delivery

time, security and service quality. Transit time is shortened

by up to 2 days in some areas and from the system

integration between TNT and Poslaju, customers can track

their shipment on the same day and accurately.

By strengthening TNT’s domestic network in Malaysia

through Poslaju’s extensive coverage, TNT can connect our

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customers in more than 200 countries with their customers

in these areas effectively, and vice versa.” said Mr. Gerry

Power, Managing Director of TNT Malaysia and Brunei.

PUBLIC

For 2010, the IFRS profit and loss account charge for

pensions, predominantly as a result of the improved

coverage ratio, is expected to be around €20 million (2009:

€60 million). The total cash contributions are expected to be

around €287 million (2009: €286 million), of which around

€260 million relates to the main pension plan and

transitional plans in the Netherlands (2009: €260). It is also

expected that increasing longevity, based on recent

statistical studies performed by the Central Bureau of

Statistics in the Netherlands, might result in a drop of

around 4% in the coverage ratio as at the end of December

2009 if the main Dutch pension fund decides to apply the

new mortality outlook.

TNT's express business suffered a revenue decline

of €697 million (10.5%) while reaching an operating margin

of 3.2%. The revenue decline is due to an organic decrease

of €662 million and foreign currency exchange differences

of €114 million, partly offset by the effect of acquisitions of

€79 million.

MARKETING

INTERMEDIARIES

TNT’s operations in Malaysia consist of three international

gateways in Kuala Lumpur International Airport (KLIA),

Penang, Johor Bahru and a network of 10 branches. TNT

operates a state-of-the-art warehouse in Kuala Lumpur

International Airport (KLIA) which is estimated to handle

80 per cent of TNT’s in-and-out bound international

business

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Apparently, the total size of the express service transportation industry in Malaysia is quite large and

it is gaining more growth after the economic recovery in the global economy. It can be noted here

that consumer purchase behaviour is now changing very significantly and of late, it is apparent that

there are an increasing number of customers that are preferring so as to use the services of courier

firms which are known to be offering their services at very low prices and which are as efficient as

TNT. Because of the economic instability around the world, it is noted here that a growing number

of consumers are not willing to use services of large companies such as TNT which are well known

to charge high prices and they are preferring to purchase the service from smaller firms which are

more cost efficient. This consumer trend is making TNT to experience a slowdown in the express

transportation services market (Istock Analyst.com - TNT Competitors, 2011).

7.2 Macro Analysis

FACTOR DESCRIPTION

Political Trends The Malaysian political system can be rated as being very efficient

and it is apparent that the presence of political stability contribute

to the increase in business stability as well. What can be stated here

is that it is this sort of political stability which is generally required

to make businesses like TNT to prosper. This company is likely to

benefit a great deal and this is because they can carry out their

business activities and they do not have to have much worry in

relation to issues to do with political instability or other business

disruptions which can have a bad impact on their business

performance (Nations Encyclopedia.com –Trends in Malaysia,

2011).

Economic Trends

The economy of Malaysia is very stable and it is noted here that the

economic policies implemented by the government have brought

success and prosperity to Malaysia. With the presence of good

economic conditions, it is likely that TNT, like other companies,

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can prosper and they can progress and take advantage of various

incentives that are provided by the government. With a strong

economy, TNT does not have to worry about having to go through

economic slowdowns and they would likely to do well and increase

their profitability (Nations Encyclopedia.com –Trends in

Malaysia, 2011).

Social Trends The economy of Malaysia is very stable and it is noted here that the

economic policies implemented by the government have brought

success and prosperity to Malaysia. With the presence of good

economic conditions, it is likely that TNT, like other companies,

can prosper and they can progress and take advantage of various

incentives that are provided by the government. With a strong

economy, TNT does not have to worry about having to go through

economic slowdowns and they would likely to do well and increase

their profitability (Nations Encyclopedia.com –Trends in

Malaysia, 2011).

Technological

Trends

In relation to this firm and its express business, it follows here that

highly reliable deliveries, efficient lead times as well as enhanced

flexibility is essential in being a requirements to achieve success

and this is promoted by a growing supply chain network, a

reduction in overall inventories and changing demand from

customers (Ameinfo – Courier Service Technology, 2011).

It is apparent that TNT is a firm that is well committed in

delivering a good customer experience and it is apparent that they

are going towards providing e-solutions which are very fast, that

are highly reliable and which are highly efficient. For example, it is

noted here that the utilization of the TNT Customer Interface

Technology (CIT) is noted to be embracing a highly creative range

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of despatch, tracking as well as tracing systems and it is noted here

that these are designed so that TNT can be even faster and to be

more accessible for its customers. In addition to this, it is noted

here that TNT Express also uses data that is obtained from

consignment barcodes and hence it is apparent here that individual

packages can be tracked when they are in transit (TNT.com –

Company Profile and Information, 2011).

7.3 TNT SWOT Analysis

STREANGTHS

High brand awareness in the

Malaysian market

TNT’s pricing is very competitive

in comparison to competitors like DHL

Total level of competence as well

as capabilities for the management

would be very high

High flexibility of services

Good communication in the firm

and between staff

Highly innovative products and

services

Increased amount of online

growth

Loyal Malaysian customers

High brand equity

Efficient supply chain

management

Possessing resources and

capabilities to expand via mergers and

WEAKNESSES

Lack of innovation and not enough

diversification relating to the express

services in Malaysia

Lack of efficiency to monitor competitors

moves by companies like FedEx and UPS

TNT does not have comprehensive

experience in the Malaysian express

delivery market

Presence of diseconomies of scale

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acquisitions.

OPPORTUNITIES

Good chance for enhanced growth in

the future in the Malaysian economy

which can motivate for there to be

enhanced businesses opportunities

and expansion

Increase and expansion to do in the

realm of global marketing creating a

high demand for fast and efficient

transmission and transportation in

relation to documents and business

packages

International market expansion in

new regions

Expansion of range of products and

services

Likeliness of there being takeovers

THREATS

Reduced amount of purchasing power of

Malaysian businesses and individuals

High competition from large and mature

express transportation companies including

FedEx and UPS

Presence of smaller competitors offering

highly cost efficient express transportation

services   

Possibility of economic slowdown around

the world

Presence of external changes

Presence of price wars

7.4 Final Analysis for Macro/Micro Environment of TNT

In making an analysis of the data obtained, there is now the possibility of determining the primary

issues that are likely to impact TNT and these would have to be looked at in making the marketing

strategy. Among the considerations that have to be given attention include the following outlined:

a. Is it necessary for TNT to continue dealing in the express transportation business or should it

specialize in various other related and unrelated fields?

b. Is it required that TNT raise its advertising and promotion expenditure so as to increase the

awareness of Malaysians in the express transportation services?

c. Would it be essential for TNT to make investments for the purposes of research and

development in order to gain knowledge so as to make for very creative and advanced features as

opposed to its present services ?

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8. Strategic Thrust

Figure 7.6: Areas of Strategic Thrust

Focus

segment information from a geographical perspective has been presented to give an overview of the

main markets. TNT has the following three reportable segments:

Express business. The Express business provides demand door-to-door express delivery

services for customers sending documents, parcels and freight.

Mail business. The Mail business provides services for collecting, sorting, transporting and

distributing domestic and international mail.

Other network business. The Other network business provides time-critical deliveries to

individually agreed delivery point for business customers during the night.

Innovation

TNT is acknowledged as an innovative force in the express industry - an organisation that sets and

raises 'the bar'. Historically the company has delivered a numbers of 'firsts' in the industry such as,

creating the first guaranteed nationwide door-to-door, business-to-business next day delivery service,

developing a first-to-market range of time sensitive early morning delivery options and launching the

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first nationwide door-to-door same day delivery service. The company's achievements have been

recognised in the past with the ultimate business accolade - The Queen's Award for Enterprise

(Innovation category).

Quality

Our customers can rely on us. TNT Post is known for its reliable quality, efficiency and competitive

price/quality ratio, and we are determined to keep it that way. That's why TNT Post strongly supports

liberalisation, as long as it's done responsibly. The European postal sector needs to be liberalised if it

is to achieve efficiency, improve quality and allow for the introduction of new services.

9. Developing Medium Strategic Options

This part of the strategic marketing plan would concern the building of a marketing strategy and

there would be evaluation of various alternative options pertaining to the marketing strategy.

9.1 TNT Marketing Mix

9.1.1 Product Mix

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In this case, the product is the TNT express transportation services which is provided to the TNT. It

is noted here that TNT’s Express service relates to the delivery of documents as well as a variety of

packages within and outside of Malaysia. The services are not recommended to be changed as it

seems that the service is sufficient and efficient.

9.1.2 Price Mix

It is submitted here that the main element which is to be changed would be the price and it is what

the customers are paying for the services given by TNT. The primary recommendation which can be

outlined here would be for a price reduction of the express transportation services of TNT in

Malaysia. In terms of the price of the services for delivery outside Malaysia, it is also to be reduced

so as to become highly competitive. There are other competitors which are providing the same kind

of services and it is for prices that are much lower in comparison to TNT. To remain competitive, it

is highly recommended that the prices be reduced in order for it to be lower as opposed to the

competitors.

9.1.3 Placement Mix

With reference to placement, it is primarily concerned with how TNT’s services would be provided

to customers and it is submitted here that in order to have a very significant and high concrete

presence in Malaysia, TNT is recommended to open more offices and outlets which would serve as

their distribution channels in order to ensure that their services can be made available for the

customers. This would likely to require much more expenditure when it comes to building

infrastructure.

9.1.4 Promotional Mix

In terms of promotion, it would be concerned with how the TNT customer can be made to be aware

of the services that are offered by TNT as well as the advantages of the services. Promotion like this

can help to customers to decide whether they should make a purchase of TNT services. TNT would

have to communicate the benefits of their services to the target market very well and it is apparent

here that promotional activities would have to be increased in intensity and there are to be use of

comprehensive advertising tools so as to perform their promotional activities.

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10.0 Financial Analysis for TNT

In this part of the paper, there would be an outline o the financial analysis for the TNT company:

Profit and Loss Statement Projection for 2012 to 2014TNT courier company Stated in 000s

Projection for Year 2012 to 2014

Year 2011 Projection2012

Projection2013

Projection2014

Sales Revenue

Courier services 772.50 850.00 950.00 1505.00

Logistics 411.60 210.00 470.00 505.00Other sales 75.00 88.00 96.00 106.60Total Sales Revenue [J] .00 .00 .60

Cost of Sales

Purchases 220.40 310.00 170.00 301.00

Carriage 122.80 130.00 120.00 131.00

Returns 0.00 57.00 19.20 38.12

Total Cost of Sales [K] .20 .00 .20 .12

Gross Profit [L=J-K] .00 .00 .00

Operating Expenses

Sales and Marketing

Advertising 325.50 230.00 196.00 272.60

Direct marketing 15.95 30.00 41.00 32.10

Communication 30.10 50.00 41.00 52.10

Public Relations 48.95 66.00 46.60 37.26

Total Sales and Marketing Expenses [M] 30.50 76.00 64.60 124.06

Research and Development

Technology licenses 27.85 40.00 37.00 39.30

Technology Hardwares 75.96 90.00 60.00 81.00

New product Development 25.00 30.00 42.00 54.20

Total Research and Development Expenses [N] .00 .00 .00 .00

General and Adminstrative

Wages and salaries 122.50 140.00 173.00 230.00

Outside services 20.70 27.00 37.50 42.25

Supplies 110.20 53.00 64.00 58.40

Meals and entertainment 16.50 11.00 31.00 22.10

Rent 118.00 76.00 75.00 71.50

Telephone 37.75 33.00 43.00 46.30

Utilities 25.32 55.00 54.00 58.40

Depreciation 13.20 9.00 12.70 8.47

Insurance 74.64 76.70 21.80 11.38

Repairs and maintenance 12.62 10.00 22.00 34.20

Total General and Adminstrative Expenses [O] . .00 .00 .00

Total Operating Expenses [P=M+N+O] .00 .00 .00

Income from Operations [Q=L-P] . .00 .00 .00

Other Income [R]        

Taxes

Income taxes 120.50 134.00 125.50 214.70

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Total Taxes [S] 120.50 134.00 125.50 214.70

Net Profit [T=Q+R-S] .00 .00 .00

Table 1: statement of profit/loss

Table 2: Marketing plan budget for each quarter

10.0 Action Plan for TNT

Marketing research (competitor, customers, environment) 1/1/2012 – 1/5/2012

Designing new packaging for TNT service 5/5/2012 – 1/8/2012

Opening of new TNT outlets in various parts of Malaysia 1/9/2012 – 1/5/2013

Launch of new TNT express service package 1/6/2013 – 1/8/2013

Launch of promotional campaigns across Malaysia 1/9/2013 – 1/3/2014

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11.0 Conclusion

In this marketing plan, recommendations were made to enhance the TNT express transportation

service and there were also suggestions in relation to the method of promotion and there was a

requirement for there to be more research in the markets so as to collect the required information in

order to carry out improvements towards the service. This is so that the service can become more

popular with Malaysian consumers. It is apparent that the price of the TNT service is causing TNT to

be uncompetitive and it is not gaining sales and it means that the primary focus of the strategy would

be on reducing the price for the service and the only way that this can be accomplished is to enhance

the operations and processes for the firm so as to provide for enhanced cost effectiveness. In relation

to the price reduction, it is recommended for TNT to take part in very highly intensive promotions as

well as advertising campaigns. These can be utilized in order to increase the awareness of the

Malaysian consumers in relation to their services. In respect to marketing research, it is also

recommended to be enhanced and apparently, this sort of research can have the impact of providing

the information required by TNT to increase their competitiveness and to acquire knowledge in terms

of the changes taking place in the environment and that which can impact their performance. By

adhering to this marketing plan, it is likely that TNT Malaysia would increase its competitiveness

and make sure that the firm has a bright future ahead of it.

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12.0 References

Kotler P, Brown L, Adam S, Burton S and Armstrong G, 2007 “Marketing” - Pearson: Education

Australia, Seventh Edition

SWOT Analysis, 2011-  citing from an internet source:

http://articles.castelarhost.com/nestle_swot_analysis.htm Accessed on: 3-2-2011

Tutor 2 U – Marketing Mix Strategy, 2011-  citing from an internet source:

http://tutor2u.net/business/gcse/marketing_strategy_marketing_mix.htm Accessed on: 3-2-2011

TNT.com – Company Profile and Information, 2011-  citing from an internet source:

http://www.tnt.com/express/en_gb/site/home/about_us/about_tnt_express/company_profile.html

Accessed on: 3-2-2011

TNT Group.com – Business Mission, 2011: citing from an internet source:

http://group.tnt.com/aboutus/ourbusiness/mission/index.aspx

Istock Analyst.com - TNT Competitors, 2011 citing from an internet source:

http://www.istockanalyst.com/competitor/TNT

Nations Encyclopedia.com –Trends in Malaysia, 2011 citing from an internet source:

http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Malaysia-FUTURE-

TRENDS.html

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