Analyzing customers perception towards air cargo service providers to Hellmann Worldwide Logistics (

DECLARATION I hereby declare that this project titled “Analyzing customers perception towards air cargo service providers to Hellmann Worldwide Logistics (INDIA) Pvt. Ltd.� is submitted for the partial fulfillment of the course MBA (Master of Business Administration), under WBUT. This is an original piece of work done by me under the guidance of Dr. XYZ (HOD of MID) and Mr. XYZ (Ocean manager of HWL(I)Pvt.Ltd.), and it has not been submitted for the award of any other degree elsewhere in full or part.

Date : Place :

Signature (XYZ)

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PREFACE Marketing in general and, consequently, air cargo marketing involves the provision of the right product or service, at the right price, available in the right place at the right time and doing so at a profit.

Hellmann Worldwide Logistics (INDIA) pvt. ltd. concerned with the identification, anticipation and satisfaction of customer needs and wants, while simultaneously making a profit. In the air cargo industry, marketing’s role is all about identifying what the customer wants and, where possible, providing this service at a price which is economical for both.

The marketing activities should identify and understand market needs, if possible should also attempt to anticipate future needs and cope with any threat contained in the market place and to avail of any opportunities which may exist.

All the marketing activities should form a coordinated effort, incorporating the sales department

and the product/pricing

sectors, combined with a

comprehensive, up to date information system providing back up. It must remain in constant touch with the volatile environment, responding to the changes which affect the marketing activities.

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ACKNOWLEDGEMENTS I express my sincere thanks and deep sense of gratitude, to my project guide Mr. XYZ, Ocean manager of Hellmann Worldwide Logistics ( INDIA) pvt.

Ltd., for his meticulous guidance, valuable advice, valuable advice, worthwhile discussion, technical ideas, and important suggestions.

I take the privilege to express my esteem and profound sense of gratitude to Prof. (Dr.) XYZ, Director, XYZ Institute, without his valuable guidance the completion of this project would have been an immensely difficult task. I am also thankful to the Principal Dr. XYZ, the Head of the Department Dr. XYZ, the Training and Placement Officer, faculty members of this Institute for their valuable guidance and support at every step of this project.

Constructive criticism and co-operation help me for developing the project.

Hence I convey my due regards to my guide Dr. XYZ, for whom this project becomes feasible and successful.

I whole-heartedly express my thankfulness, deep gratitude to all the members of HWL(I) pvt. Ltd., for their kind Co-operation, timely help, technical suggestions, and contribution for achieving success for this project.

Although I have expressed my gratitude to every person, who helped me in reaching at the stage but there might be few who had been left out, who helped me a lot, I would like to thank all of them.

Name: XYZ Place: XYZ

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CONTENT CHAPTER-1 No.

Page

INTRODUCTION.........................................................................................................06

1.1 INTRODUCTION TO THE PROJECT…………….…………………………..07 1.3 OBJECTIVES OF THE STUDY…………….………………………………..… 08 1.4 SCOPE OF THE STUDY……………………………...…………………………09 1.5 LIMITATIONS OF THE STUDY…...………………………………………… .10 CHAPTER - 2 REVIEW OF LITERATURE………………………………………………….........11 CHAPTER – 3 COMPANY PROFILE……………………………………..…..………………………..... .13 3.1 ABOUT COMPANY………………………………………..………………......14 3.2 ORGANISATION STRUCTURE…………………………………………........15 3.3 ABOUT SERVICES………………………………………...……………………16 3.4 BENEFITS OF THE COMPANY ……………………………………….……..17 3.5 VISION OF THE COMPANY………………………………..………...……....17 3.6 MISSION OF THE COMPANY……………………………………….....…….17 CHAPTER – 4 THEORETICAL FRAMEWORK…………….………………………………...……...18 4.1 LOGISTICS SYSTEM………………………………………………………….19 4.2 FREIGHT FORWARDING……………………………………………………20 4.3 AIR CARGO……………………………………………………………………27 4.4 AIR CARGO MARKETING PLAN…………………………………………..35 CHAPTER – 5 DEVELOPMENT OF HYPOTHESES…………………………………………..38

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CHAPTER – 6

Page no.

RESEARCH AND METHODOLOGY………………………………………….40 6.1 RESEARCH DESIGN …………………………………..…..……………….....41 6.2 BACKGROUND INFORMATION.………………...........................................41 6.3 LOCALE OF STUDY……………………………………....................................41 6.4 SAMPLING PROCESS………………………………………….……………....42 6.5 TECHNIQUES OF DATA COLLECTION…………………..………….…….42 6.6 TOOLS OF DATA COLLECTION…………………………………….………42 6.7 SCALE USED.……….……………………………………………………..…....43 6.8 TYPES OF DATA SOURCES……………………………………….…….…....43 6.9 METHODS OF PROCESSING DATA………………………………………...44 6.10 PROBLEM FACED IN DATA COLLECTION…………………...…..……..44 CHAPTER – 7 DATA ANALYSIS & RESULTS…………………………………….………….…..45 CHAPTER – 8 FINDINGS & RECOMMENDATIONS…………………..……………………..…58 CHAPTER – 9 CONCLUSION………………..…...……....................................................................61 BIBILOGRAPHY……..……………………………………………………............................63 APPENDICES…………………..……………………………………………………64

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CHAPTER- 1 INTRODUCTION

1.1

INTRODUCTION

1.2 OBJECTIVE OF THE STUDY 1.3 1.4

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

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1.1

Introduction:-

Marketing is so basic that it cannot be considered a separate function – it is the whole business seen from the point of view of its final result that is from the customer’s point of view (Drucker, 1960).

Marketing in any industry is a highly complex process. This is also true for Air Cargo Marketing.

Marketing in general and, consequently, air cargo marketing involves the provision of the right product or service, at the right price, available in the right place at the right time and doing so at a profit.

Furthermore, we are both concerned with the identification, anticipation and satisfaction of customers need and wants, while simultaneously making a profit .It is essential, given this definition of air cargo marketing, that the airline identifies and understands market needs.

Cargo marketing is all about making decisions about the type and level of service, which the airline should offer, to the customer.

In the air cargo industry, marketing’s role is all about identifying what the customer wants and, where possible, providing this service at a price which is economical for both the airline and the customer.

The six international and 87 domestic airports handle 0.22 million metric tonnes of domestic cargo and 0.468 million metric tonnes of international cargo, which is extremely poor in terms of world standards. This is because the air cargo is used only when sea trade could not be used either due to time or space constraint. This poses a serious limitation in procurement, especially when companies are looking at adopting global sourcing strategies to reduce costs and enhance product quality.

The air cargo market in India has grown at a high rate in the last decade and expected to maintain a high growth rate till 2025 before stabilizing. An Air PAGE| 7

Cargo Policy is being put in place which will project a vision for the air cargo growth by the year 2020.

1.2 •

Objectives of the study:To understand the cargo product, marketing characteristics of the air cargo product and future trends of world trade patterns, trading restrictions and term.

•

Understand the existence of the various rules and laws which, either directly or indirectly, affect the air transportation industry.

•

Understanding the contribution, capacity cost, yield management and their contribution to the success of the airlines cargo operation.

•

Pricing Strategies, implementation and evaluation of the marketing plan, airline agreements on allotment, ULD, interline traffic, contract rates, space control etc.

•

Distribution process of the airfreight industry, understanding the importance of quickly in the areas of handling and marketing of the cargo product & risk management.

•

Identifying the strategy for Target marketing and target groups, market segmentation and advantages / limitation of airfreight potential, future growth and customer trends.

•

Role of advertising in promoting air cargo –service- The market Mapselection of advertising media.

•

To identify the factors or attributes configuring customer’s perception towards air cargo service providers.

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•

To measure the customers perception on the identified factors for Hellmann and carry out comparative analysis of the other service providers with Hellmann on the identified persons.

1.3. Scope of the study:The scope of marketing research could cover the business problems relating to the followings.  Types of consumers that compromise present and potential markets.  Buying habits and pattern of consumption.  Size and location of different markets, not only in India but also overseas.  The prospects for growth or construction for the current markets being served.  New mantras of emerging segments.  Marketing and manufacturing capabilities of competitors.  Most suitable entry timing.  The current and prospective competitive position.  Chances of improvement of current channels.

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1.4 LIMITATIONS OF THE STUDY:There have been a number of limitations because of which the survey may not be indicative of the views of the target population. A few of these have been mentioned below.  Time is the main constraints of this study.  The Sample size used for the research is less.  The Target Area was limited to the nearby area.  Consultation with Experts would have largely improved quality of the Research.  The Questionnaire was not extensive and more issues could have been addressed.  The responses obtained might be inaccurate or biased, inadvertently or deliberately.  The sample of the respondents chosen for the study might not be representative.  Analysis of the proposed aspects might differ depending on the tools and technique used.

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In order to know the review of literature, a comprehensive plan has been framed which is discussed in detail in the following chapter.

CHAPTER – 2 REVIEW OF LITERATURE

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LITERATURE REVIEW:-

(Lieb, Millen and Wassenhove, 1993) Outsourcing, third party logistics services (3PL) and contract logistics generally mean the same thing It involves the use of external companies to perform logistics functions, which have traditionally been performed within an organization. The functions performed by third party logistics service providers can encompass the entire logistics process or select activities within that process.

(Cooper, 1993) A key rationale for outsourcing of logistics functions is the intensified globalization of businesses. During the last two decades, globalization has emerged as a major force of shaping business strategies, leading firms to develop products designed for a global market and to source components globally .

(Byrne, 1993; Foster and Muller, 1990; Trunick, 1989) This has led to more complex supply chains requiring larger involvement of managers in logistics PAGE| 12

functions. Lack of specific knowledge of customs, tax regulations and infrastructure of destination countries has forced firms to acquire expertise of third party logistics service providers. As a result firms are concentrating their energies on core activities and leaving the rest to specialist firms .

(Bhatnagar, Sohal and Millen, 1999) In the last two decades, the quest for time based competence led initially to a rapid adoption of new manufacturing methods like just-in-time, flexible manufacturing systems, computer aided manufacturing and so on by organizations.

(Sahay and Mohan, 2003) conducted a recent research carried out on supply chain management practices in India highlights that the opening of Indian economy and globalization of businesses has been a key factor for the Indian industry to align supply chain strategy with business strategy, streamline processes for supply chain integration and form partnerships for minimizing inventories. Indian organizations are increasingly deploying supply chain strategies for logistics improvements – to increase sales revenue, enhance profits, reduce order to delivery cycle time and minimize inventories

CHAPTER-3 COMPANY PROFILE

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Indo-German Trade lane

3.1 ABOUT COMPANY

3.2 ORGANISATION STRUCTURE

3.3 ABOUT SERVICES

3.4 BENEFITS GIVEN BY THE COMPANY

3.5 VISION OF THE COMPANY

3.6 MISSION OF THE COMPANY

3.1 ABOUT COMPANY:-

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Founded in 1871, Hellmann worldwide logistics started with one man, Carl Heinrich Hellmann, using a horse-drawn cart to deliver parcels in and around the town of Osnabrueck, northern Germany. Four generations later, Carl’s greatgrandchildren, Jost and Klaus, own and run the company with an active network in 157 countries. Today this company operate a truly global organization while remembering their humble beginnings: this company continue to value every customer and understand that each project requires a unique solution. This powerful combination of an individual approach within an international framework ensures that we deliver top-quality customized logistics solutions, every time. This company constantly strive to develop better, more efficient ways to do business, whether it is by implementing cutting-edge technology, increasing the number of services they provide, or expanding our network of branches and warehouses. This dynamic mind-set is reflected in their motto “Thinking Ahead, Moving Forward” and demonstrates a tradition of innovation which is intrinsic to every part of the Hellmann company.

Hellmann’s transition from a one-man company to one of the world’s leading logistics providers is a result of all these factors. They are the cornerstones of their business and are the reason for past achievements, the foundation for future success and the values which make Hellmann the right choice for today.

IN INDIA: In India since ,23rd Nov 2006  5 Regional offices,12 branch offices & 300 staff country wide.  Customised solutions for Logistic and Supply Chain requirements.  Multimodal transportation services.  Automated business processes using fully integrated IT tools.  Executing Customs Clearance in all major ports.

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3.2

ORGANISATION STRUCTURE

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3.3

ABOUT SERVICES:-

A) TRANSPORT SERVICES: airfreight  sea freight  sea-air  System Alliance / Europe  European distribution

B) IT-Services: HIS Hellmann Information Service /Online Archive  Hellmann connect  Hellmann e-Business

C)

Special Services: Air charter  Automotive logistics  Marine solutions  Hpl hellmann perishable logistics PAGE| 17

D)

Consulting: Academy  EUROS  insurance system  Contract logistics

3.4 BENEFITS GIVEN BY COMPANY:-

3.5

•

Origin Pickup/Trucking.

•

Warehousing if required.

•

Customs Clearance & Documentation at origin.

•

Origin charges payable like THC, B/L Fee etc.

•

Carriage by Sea or Air by payment of Freight.

•

Inland Trucking if required.

•

Customs Clearing of goods at destination and Warehousing if need be.

•

Door Delivery of the cargo.

VISION OF THE COMPANY:-

Hellmann is recognized for logistics excellence and providing competitive advantages for businesses to compete in global markets.

3.6 MISSION OF THE COMPANY:To be focused as a pro-active cargo gateway by anticipating and reacting to each stage of a shipment's transit with commitment and to experience strategic growth of a highly respected and recognized cargo company in the Industry.

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In order to know the air cargo services, a comprehensive plan has been framed which is discussed in detail in the following chapter.

CHAPTER – 4 THEORITICAL FRAMEWORK

4.1

LOGISTICS SYSTEM

4.2 FREIGHT FORWARDING

4.3 AIR CARGO

4.4 AIR CARGO MARKETING PLAN PAGE| 19

4.1 LOGISTICS MANAGEMENT:Logistics is defined by the “Council of Logistics, Ohio USA” as the Process of planning, implementing and controlling the efficient, co-effective flow and storage flow and storage of raw materials, in process inventory finished goods and related information from point of origin to point consumption. More simply, the objective of Logistics System is that the right products reach the right place in the right quantity at the right time to satisfy customer demand.

ELEMENTS OF LOGISTICS SYSTEM: Nature of Product.  Location of Manufacturing Plant PAGE| 20

 Availability of infrastructure such as Road  Availability of different modes of transportation  Dealer/Distributor Network  Government Policy.

4.2

FREIGHT FORWARDING SYSTEM:-

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Source:- www.exim.net

4.2.1 EXPORT & IT’S PROCEEDURE:Export of services consist of all services rendered by residents to nonresidents. In national accounts any direct purchases by non-residents in the economic territory of a country are recorded as exports of services; therefore all expenditure by foreign tourists in the economic territory of a country is considered as part of the exports of services of that country.

Also international flows of illegal services must be included .

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In India, ships transport more than 90 per cent of the cargo. It therefore interesting to study the export processed by ship documentation related to it.

Processing of an export order-----

PROCEEDURE:i.

Exporter operation starts with the receipt of enquiry by the exporter from importer. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc.

ii.

After the process negotiations importer sends a purchase order follow by letter of credit (if applicable).

iii.

The exporter manufactures the goods according to the specification given in purchase order

v.

After that, the exporter prepared following documents:---•

INVOICE

•

PACKING LIST

•

ARE1 FROM EXCISE DEPARTMENT

•

MARINE INSURANCE POLICY

•

COPY OF PURCHASE ORDER / L/C

vi.

Above those documentation sends to CHA by exporter.

viii.

Custom department check the export cargo on the basis of information provided on the shipping bill. If satisfy then cargo allow to loaded on the board of ship.

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ix.

The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of lading(B/L) from shipping line .B/L is a proof of dispatch of cargo and also a negotiable document.

x.

After that, CHA agent send various documents back to exporter which is —

xi.

•

Customs attested invoice

•

Copy of shipping bill

•

Full set of non board bill of lading.

•

Copy of purchase order or L/C

•

Copies of ARE1 Form

•

SDF form

After that the exporter submitted above these documents for negotiation to the bank which include :---•

Commercial invoice

•

Packing list

•

SDF form

•

Original copy of purchases order

•

Certificate of origin

•

Bill of exchange

•

Shipment advice

After that, bank scrutinizes these documents and if found correct make payment to exporter against documentations.

EXPORT PROCEEDURE FLOWCHART:-

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4.2.2 IMPORT & IT’S PROCEEDURE:PAGE| 25

“Import”, with its grammatical variations and cognate expressions, means bringing India from a place outside India (The Customs Act ,1962).

“Importer” in relation to any goods at any time between their importation and the time when we are cleared for home consumption, includes any owner or any person holding himself out to be the importer(The Customs Act 1962).

The main documents of imports are as under: a) Signed invoice b) Packing List c) Bills of lading or bill of lading / air way bill d) Completion of the GATT has been filled in declaration e) The importer or his customs declaration agent f)

Approval (when necessary)

g)

Letters of credit / bank draft (when necessary)

h)

Insurance documents

i)

Import license

j)

Trade License (when necessary)

k)

Laboratory (Department of Chemicals to provide the goods)

l)

Permitted to make tax-free

m)

The right tariff exemption certificate (DEEC) / right to tax refund certificate

n)

(DEPB) original.

Catalog, detailed technical specifications, related documents (the goods are machinery and equipment, machinery and equipment to provide spare parts or chemicals)

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o)

A single price of machinery and equipment spare parts

p)

Certificate of origin (application of preferential tariff rates to provide)

q)

No commission statement.

General Procedure for Import Cargo:•

The Steamer Agent files the Vessel Arrival Intimation 7 days prior to the expected arrival of the vessel.

•

The steamer agent files IGM manually or electronically.

•

The Port allocates the berth and the vessel is berthed.

•

Customs, PHO, Plant Quarantine, Immigration etc officials board the vessel and entry inward is granted.

•

Port/terminal operator commences the cargo operations

•

The steamer agent pays the Vessel Related Charges in advance.

•

Bill of Entry filed by the CHA/Importer and BE number is obtained.

•

BE is cross checked with IGM and tallied

•

BE is sent for assessment. Assessed and payable duty is arrived at.

•

Duty is paid by the importer or CHA

•

Stevedore indents for labor and equipment

•

Unloading of cargo operation starts with tally

•

CHA files import application along with the Delivery Order. Port cargo Related charges are paid. IA is verified with IGM.

•

Selected packages are opened and Customs examines the cargo.

•

On obtaining the Out of Charge from the Customs the CHA approaches the port for delivery of cargo with BE and IA.

•

The documents are cross-verified, vehicle ticket is issued and delivery is effected. The delivered goods pass the port gate after physical examination and document check in the gate.

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FLOWCHART FOR IMPORT PROCEEDURE:-

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4.3

AIR CARGO:PAGE| 29

India's increasing international trade combined with the strong domestic economy, is continuing to drive demand for air cargo and logistics. All major international cargo operators are reporting strong growth in the Indian market.

New dedicated cargo airlines are being launched. Massive investment plans in the organized retail sector as well as in high value manufacturing, require the support of sophisticated logistic facilities, leading to the growth of air cargo.

The Department of Cargo with 157 Professional Executives, with average of 10 years, has grown gradually with establishment of Gateway Air Cargo Terminals at Kolkata (1975), Chennai (1978) & Delhi (1986). The capacities have been augmented keeping pace with air cargo growth. India's economic development will require the support of dedicated cargo cities with multi-modal interchanges, state-of-the-art cargo terminals, cold storage facilities and electronic data interchange systems.

The Integrated Air Cargo Terminal at Delhi provides for export/import transit cargo handling facilities. The Cargo Management System here has been upgraded to a fully computerized "On Line'' Integrated Cargo Management system with Electronic Data Interchange (EDI) and Bar Coding Capabilities. The Cargo Management Systems at Mumbai, Chennai & Kolkata are also computerized though not yet "On Line system''. At Delhi, the Multi level ETV system for handling loaded pallets & containers is being augmented by an additional ETV system enhancing the present 284 slot capacity by almost 50 per cent.

A perishable Cargo handling terminal with `Pre-cooling' chambers, independent chambers for Fruits, Flowers, Frozen Products etc., has been in operation at Delhi. A much bigger Perishable Cargo Terminal is planned at Mumbai Airport where perishable cargo constitutes 40% of total air cargo.

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AAI Air Cargo Terminals provide for Truck Docks, Strong Rooms, Live Animal Sheds, Hazardous Cargo Godown, and Palletisation Station, Offices for Airlines, Government Regulatory Agencies, Multi-model Cargo Operators, Break Bulk Agents, and Consolidators for ease of operation and user convenience. To meet safety standards CCTV Systems, X-rays Scanners etc., are provided. Modern cargo handling equipment like cranes, forklifts, high mast stackers, power Pallet trucks etc are used for the Cargo handling. Also available is a state-of-the-art centre for export perishable Cargo likes flowers, fruits, vegetables and meat. Six wide-bodied aircrafts can be parked simultaneously in an exclusive Apron area in front of the Cargo terminal.

4.3.1 Air cargo handling Area and facility: Import cargo  Commercial cargo  Valuable items like jewellery & diamonds  Export cargo  Outgoing unaccompanied baggage

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Cargo Handling Facilities:Public Facilities Photocopying

Special Facilities

General Facilities

On-line Integrated Cargo

strong room for

Management System (ICMS)

valuable cargo

For data processing Cold drinks/tea/

Elevated transfer

Center for Perishable

Coffee kiosks

vehicle(ETV)

cargo/cold room( 3

With 350 stacking slots for 3

chambers, 0-12 degree

level storage of ULD’s

Celsius.

Coffee home Public Telephone

Pick and carry cranes Forklifts

Hazardous Cargo Shed Live Animal Shed

(STD/ISD) Banks Power pallet trucks State Bank of India Truck – dock 84 Nos. Air condition in public Cargo trolleys Waiting Area Canteen

Auction Hall for disposal of Unclaimed cargo

4.3.2 Types of cargo:Cargo are five types. Those are:PAGE| 32

I. II.

Wet cargo.

III.

Heavy cargo.

IV.

Voluminous cargo.

V. I.

Valuable cargo.

Perishable cargo.

Valuable cargo:-

a.

Definition:For acceptance purposes valuable cargo is defined as described in the section pertaining to class rates. (Recheck section on class rates).

b.

Acceptance :Valuable can be accepted provided : i. We are not consolidated with other goods ( a consolidated shipment may, however, be wholly composed of valuables). ii. We are packed in such a manner that the contents cannot be tempered with or removed without visible evidence thereof remaining. For details about minimum size s refer to the carrier concerned. iii. The greatest width, height and length of a consignment must be ascertained on acceptance. For valuable cargo, each piece must be so measured , and for low density cargo its cubic volume must be measured.

II.

Wet cargo:-

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Carrier can accept wet cargo, including cooled goods, wetted fresh flowers and vegetables, soft fruits and other goods which may leak or give off moisture, provided the packing is leak proof . Advance arrangements have to be made with the nearest office of the carrier before acceptance of salted castings & skins, etc.

III.

Heavy cargo (where at least one package weighs 150kgs.

Or more: Upon acceptance, each consignment must be accurately weighed.

The weight of a piece of cargo above available scale capacity must be determined elsewhere , supervised by staff of carrier or agent .

Alternatively, an approved weighbridge may be used in which case the weight note must be submitted to the cargo accepting officer together with the consignment concerned.

IV. Voluminous cargo:Ordinary cargo of various sizes and weights can be

accommodated

depending upon the type of aircraft operated . however , carrier may be contacted for possible exceptions to accommodate single pieces of sizes greater than that as indicated as maximum and refer to carrier’s special regulations.

V. Perishable cargo:Articles of a perishable nature which are liable to deteriorate or perish due to change in climate, temperature , altitude ,or other normal exposure, or length of time in transit , will be accepted provided that it is reasonably certain we will reach the destination in PAGE| 34

good condition. Advance reservations should be made & packages and documents should be boldly marked“PERISHABLE”. A special “PERISHABLE” label shall be affixed on each package.

4.3.3 Cargo Trade & Trade Patterns: The air Cargo industry facilitates trade. It is a by-product of the air passenger industry, but it has own characteristics & is always be a consequence of a business transportation- The cargo never travels simply for pleasure.

Once an agreement about buying and selling goods has been reached, the optimum transport solution is selected based on the following criteria: •

Time

•

Cost

•

Quality

•

Reliability

•

Availability

However, such agreements can be complex, as world trade is subject to frequent changes, due to many influencing factors.

The main factors are as follows: •

World Trade Patterns and Trade Partners:The trades patterns of the world are clearly reflected in the airline industry as a whole. The passengers may travel for purposes other than business, airfreight invariably follow these trade patterns.

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The patterns circulate the world east-west and west –east and to a lesser extent north-south and south – north.

•

Currency Exchange Rates:-

An important factor in world trade is currency exchange. Currency Exchange Rates vary daily. it is clear that a country with a strong currency has the financial potential to import goods. Importing goods, however, weakens the position of the country’s own producing companies and therefore hampers its exports.

On the other hand, a country with a weak currency can sell its export commodities at a competitive price, but this weak currency makes imports more expensive.

The cost of imports for countries requiring basic raw materials such as oil, gas, coal, ore, steel and food is immense, whereas richer countries can afford to import goods other than the basics such as electronics , textiles ,books, machinery , furniture , sports equipment and toys etc .

Manufactured goods as opposed to raw materials are more likely to be transported by air because of their high value.

This clearly contributes directly to imbalances of air cargo development in different parts of the world.

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•

Trade Restrictions and Policies:-

World trade affects the economics and subsequently the entire countries of all the trading partners. Not surprisingly, trade is carefully monitored and controlled by the individual Governments.

Many governments feel pressure to create protectionist policies (Policies of shielding domestic industry from foreign competition) such as Tariff (A tax levied on imported goods) , quotas ( A limitation on the quantity of a good which can be imported or exported at a given point of time .

4.3.4 Relationship of Air Cargo to Trade and GDP:-

The relationship of air cargo and trade and GDP are having a direct relationship and we are interdependent. Air cargo enables nations, regardless of location to efficiently connecting to distant market and global supply chains in a speedy, reliable manner. Thus in the new speedy logistic era, nations with good air cargo capability have competitive trade and development advantage over those without such capability. Competitive advantage, as Michael Porter and others have documented fundamental for growth. From the above references, there is well established correlation between air cargo and GDP growth. The historical relationship between airfreight and GDP by world region from 1980 to 2000 reveals that there is a close relation between three.

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For example, the World Bank study 2000 reveals the relationship between the worlds GDP to world airfreight predicts close with approximately 97.0% accuracy. Since, these two are mutually causal, and we are highly interdependent. Business rules are being distorted by the convergence of globalization, digitization, aviation and time based competition.

4.4 Marketing Plan:A marketing plan is a plan of who will do what and when and the expected results. The completed marketing plan contains the elements discussed below, giving a framework upon which revenue and cost budgets can be established.

•

A document statement of the cargo marketing department’s policies and activities.

•

A specification of the basic revenue or other objectives which guide the efforts of the cargo marketing department.

•

A presentation of resources to be used to achieve specified objectives and goals.

•

A statement of long term developments which may affect cargo marketing decisions in the short term.

•

A detailed and calendarised plan setting out which of the elements of marketing will be used and when, to achieve the objectives set.

The PURPOSE of the market plan is to•

Set out the cargo marketing department’s objectives, strategies and resources in such a way that we can be easily understood.

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•

Eliminate confusion and misunderstanding among the staff involved in the cargo marketing function.

•

Establish exactly who will carry out each of the tasks outlined in the marketing plan,. When and why.

•

Ensure that all participants in the overall cargo marketing operation are working towards common goals.

•

Provide a permanent record of the marketing planning and the rational behind it.

•

Develop a continuity of thought and effort from one year to the next, so that any new members of staff are given direction.

4.4.1Contents of a marketing plan: The recommended contents of the Cargo Marketing plan to achieve its goal are  Corporate vision & goals These are decided by top management and communicated throughout the cargo marketing department. We are of paramount importance, as all marketing planning is aimed at: a) Fulfilling the corporate vision and b) Achieving the corporate goals.  Macro & Micro environment This section of the marketing plan investigates the current situation of the world market in terms of currency, environmental and political changes, new legislation and consumer habits. The macro environment cannot be controlled or influenced by the air cargo industry .

This is an investigation of the specific marketing environment of the air cargo industry i.e. an analysis of the current situation of the air cargo business and its markets. The micro environment may be controlled or influenced by the air cargo industry .  Competition PAGE| 39

This section of the plan examines what is happening in the industry as a whole with respect to new competitors and new products in the market place.  Products This involves analyzing which products are in demand and which are notnamely, new aircraft, new routes, new destinations, new containers and so on.  Pricing This necessitates examining any changes in the market place which have already affected or will affect the pricing policy. It outlines the planned /needed yield for the period covered by the plan. It also establishes the platform for the pricing strategy.

 Sales outlets This section describes market changes affecting major agents, forwarders, GSAs or major direct customers, as well as any change in the cargo department’s own marketing strategy and own sales/agency sales.  Organization The subject dealt with here is those changes which affect the cargo marketing department’s own organization, for instance, new staff, new techniques, new training methods etc.  SWOT analysis.

The primary purpose of SWOT analysis is to analyze any change or planed change in the present marketing situation by looking at things from “the outside in “ rather than looking at the market from the perspective of a marketer .

4.4.2 TYPES of Marketing Plan: There are two types of marketing plan, which differ in the way we are constructed.

The top - down marketing plan This type of plan covers Mission, vision & goals, product, Pricing, sales outlets etc.

Most of the details in this plan are established by top management. With this method of

PAGE| 40

marketing plan design, the cargo department’s activities are essentially limited to local support of sales, within a limited budget.

The bottom – up marketing plan The planning activities are divided between top management and the field cargomarketing department as follows Management Provides:

Corporate vision & Goals



Traffic program & capacity



Product Strategy

In order to develop the hypothesis, a comprehensive research plan has been framed which is discussed in detail in the following chapter.

CHAPTER -5 DEVELOPMENT OF HYPOTHESIS

PAGE| 41

DEVELOPMENT OF HYPOTHESES:There are three leading logistics companies in the Kolkata. These three brands are Hellmann, Union and Panalpina. I can say from here that the consumer preference of these mentioned logistics companies may or may not be same.

Based on this observation the following hypothesis developed.

H1: The customers’ perception towards the

air cargo service substantially

influenced by the factors that include Price/ Charges, Corporate image, Letter of credit, Supportive services on custom clearance, Quality of packaging, Terms &conditions related to damage or loss in transit, Behavior of the company persons, Personal attention by the company persons, International credibility, & Past experience.

In order to test the hypothesis, a comprehensive research plan has been framed which is discussed in detail in the following chapter.

PAGE| 42

CHAPTER- 6 RESEARCH METHODOLOGY

6.1 RESEARCH DESIGN 6.2 BACKGROUND INFORMATION 6.3 LOCALE OF THE STUDY 6.4 SAMPLING PROCESS 6.5 TECHNIQUES OF DATA COLLECTION 6.6 TOOLS OF DATA COLLECTION PAGE| 43

6.7 SCALE USED 6.8 TYPES OF DATA SOURCES 6.9 METHODS & PROCESSING DATA & TOOLS USED 6.10 PROBLEM FACED IN DATA COLLECTION

6.1

RESEARCH DESIGN:-

Research design is the based framework, which provides guidelines for the research process. It is a map or blue print according to which the research is to be conducts. The research design specifies the methods for data collection & data analysis determine the source of data. Most specifically it was a kind of “Descriptive conclusive research” who takes care of who, when, where, what, how and why aspects of the investigation further the researcher used the statistical method to serve the purpose of project, it permitted the research to derive more accurate generalization whose reliability could be measured.

CENTRE : KOLKATA RESEARCH : EXPLORATORY RESEARCH TECHNIQUE : STATISTICAL TOOL USED : TELEPHONIC & E-MAIL DATA SOURCE : PRIMARY & SECONDARY

6.2

BACKGROUND INFORMATION:PAGE| 44

This phase involved preliminary investigation of the various factors which could possibly affect the companies’ preference about the various logistics companies and in turn influence the services of the many companies. The Secondary data gathered was analyzed to understand the current scenario of the logistics services. The analysis of the secondary data also helped me to find different attributes which affect the logistics services.

6.3 LOCALE OF THE STUDY:As the time and the cost are the two main constraints in this research so it is not possible to consider the whole logistics service so the survey was conducted in Kolkata only.

6.4 SAMPLING PROCESS:With in the stipulated time it is not possible to collect data from all the consumers so I have chosen the sampling process. i. Sampling technique: The data collected from the samples in Random sampling process. It is the process of selection of a group of units in such a manner that every unit of population has an equal chance of being included in the sample. ii. Sample size: It denotes the number of elements to be included in the study.

Due to time constraints the sample size chosen is very small. The total no of sample is 20 (twenty).

6.5 TECHNIQUES OF DATA COLLECTION:Once sampling plan has been determined, the marketing researcher must decide how the subject should be conducted. In this survey the PERSONAL INTERVIEW METHOD is adopted as a technique of data collection as it is a versatile method. And through it more questions can be asked and records of additional observations become easier from the respondents.

PAGE| 45

6.6

TOOLS OF DATA COLLECTION:-

In this survey the main tool of collecting primary data from the consumers is QUESTIONNAIRE as this is the most common instrument used to collect data and the form of question can influence the response. The questions were then prepared in order to fulfill the information requirements as identified earlier in the study objectives.

All the questions in the questionnaire are close-ended. In the questionnaire there is only one part that is rating scale, which rates the importance of the attributes that can create impact on many companies attention towards logistics companies.

6.7 SCALE USED:In case of close-ended questions specify all the possible answers and provide answers that are easier to interpret and tabulate. For that here one type of scale is used in the questionnaire.

The rating scale which rates some attributes from good to poor that helps me to make the comparative study among the brands. And the scale used is the 5-point scale from very good to do not know.

6.8 TYPES OF DATA SOURCES:A researcher can gather primary data, secondary data or both. PRIMARY DATA are data freshly gathered for a specific purpose. SECONDARY DATA are data that were collect for other purpose and already exist somewhere. i. Primary data: In this research the primary data are collected from the respondents through the survey conducted. These data are collected for analyses purpose and from the analysis of those data the inferences is drawn.

• Telephone • Invoice • Packing list PAGE| 46

ii. Secondary data: In this research the secondary data are those data which are collected from:• • •

Letter of Credit copy (L/C copy) Air Way Bill Internet

6.9 METHODS OF PROCESSING DATA AND TOOLS USED:After the data collection the very next step is the processing of data. For that the data are tabulated in the particular form of the questionnaire.

Then by Hypotheses testing and with the help of different chart representation the inferences is drawn the inferences based on each question. Mainly the Statistical tool are used here for hypotheses testing are – 1) Analysis of variance (ANOVA): It is carried to study the variance of the brands with respect to each of the attributes that influence companies choosing the best logistics services among the logistics company.

6.10 PROBLEM FACED IN DATA COLLECTION:Due to lack of consumer experience for interviews created problem in collecting the data from the respondents.

In some cases poor quality of interviews created problem. Due to this some incomplete records existed. But in time of final analysis the incomplete records are removed.

PAGE| 47

In order to know the data analysis & result , a comprehensive research plan has been framed which is discussed in detail in the following chapter.

CHAPTER-7 DATA ANAYSIS & RESULTS

PAGE| 48

H1:

BRAND

INFLUENCING

THE

PERFORMANCE

OF

THE

PRICE/CHARGES FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the price.

HO: The perceptions on price dimension remain same across the brand.

H1: The perception on price dimension varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

22.936 2

column Within the column

22.936/2 = 11.468

29

57

29/57

11.468/0.508 3.16 = 22.57

(Error) PAGE| 49

= 0.508

FOBSERVED > FCRITICAL (So, we rejected the null hypothesis).

Inference: Since, the observed value of F (22.57) is higher than the 5% tabulated value (3.16) corresponding to d.f (2,57), we rejected the null hypothesis and conclude that the Relationship exists between perception towards the price is varies at 5% level.

H1: BRAND INFLUENCING THE PERFORMANCE OF THE CORPORATE IMAGE FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the corporate image.

HO: The perceptions on corporate image remain same across the brand.

H1: The perception on corporate image varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

0.1

2

column Within the column (Error)

0.1/2 = 0.05

21.86

57

21.86/57

0.05/0.38

3.16

= 0.13

= 0.38 PAGE| 50

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis) Inference: Since, the observed value of F (0.13) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and conclude that the Relationship exists between perception towards the corporate image is same at 5% level.

H1: BRAND INFLUENCING THE PERFORMANCE OF THE LETTER OF CREDIT FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the letter of credit.

HO: The perceptions on letter of credit remain same across the brand.

H1: The perception on letter of credit varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

1.2

2

column Within the column (Error)

1.2/2 = 0.6

34

57

34/57

0.6/0.59

3.16

= 1.01

= 0.59

PAGE| 51

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis)

Inference: Since, the observed value of F (1.01) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and conclude that the Relationship exists between perception towards the letter of credit is same at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE SUPPORTIVE SERVICES IN TERMS OF CUSTOM CLEARENCE FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the supportive services of custom clearence.

HO: The perceptions on supportive services remain same across the brand.

H1: The perception on supportive services varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

0.30

2

column Within the column (Error)

0.30/2 = 0.15

13.34

57

13.34/57

0.15/0.23

3.16

= 0.65

= 0.23

PAGE| 52

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis)

Inference: Since, the observed value of F (0.65) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and conclude that the Relationship exists between perception towards the supportive services of custom clearence is same at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE QUALITY OF PACKAGING FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the quality of packaging.

HO: The perceptions on quality of packaging remain same across the brand.

H1: The perception on quality of packaging varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

1.30

2

column Within the column (Error)

1.30/2 = 0.65

13.54

57

13.54/57

0.65/0.23

3.16

= 2.82

= 0.23

PAGE| 53

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis)

Inference: Since, the observed value of F (2.82) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and conclude that the Relationship exists between perception towards the quality of packaging is same at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE DAMAGE OR LOSS IN TRANSIT FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the damage or loss in transit.

HO: The perceptions on damage or loss in transit remain same across the brand.

H1: The perception on damage or loss in transit varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

3.034

2

column Within the column (Error)

3.034/2 = 1.51

18.88

57

18.88/57

1.51/0.33

3.16

= 4.57

= 0.33

PAGE| 54

FOBSERVED > FCRITICAL (So, we rejected the null hypothesis) Inference: Since, the observed value of F (4.57) is higher than the 5% tabulated value (3.16) corresponding to d.f (2,57), we rejected the null hypothesis and conclude that the Relationship exists between perception towards the damage or loss in transit is varies at 5% level

H1: BRAND INFLUENCING PERFORMANCE OF THE BEHAVIOUR OF COMPANY PERSONS FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the behavior of company persons.

HO: The perceptions on behavior of company persons remain same across the brand.

H1: The perception on behavior of company persons varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

0.40

2

column Within the column (Error)

0.40/2 = 0.20

20.6

57

20.6/57

0.20/0.36

3.16

= 0.55

= 0.36

PAGE| 55

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis) Inference: Since, the observed value of F (0.55) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and conclude that the Relationship exists between perception towards the behavior of company persons is same at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE PERSONAL ATTENTION BY THE COMPANY PERSONS FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the personal attention by the company persons.

HO: The perceptions on personal attention by the company persons remain same across the brand.

H1: The perception on personal attention by the company persons varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

6.53

2

column Within the column (Error)

6.53/2 = 3.26

33.80

57

33.80/57

3.26/0.59

3.16

= 5.52

= 0.59

PAGE| 56

FOBSERVED > FCRITICAL (So, we rejected the null hypothesis) Inference: Since, the observed value of F (5.52) is higher than the 5% tabulated value (3.16) corresponding to d.f (2,57), we rejected the null hypothesis and conclude that the Relationship exists between perception towards the personal attention by the company persons is varies at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE INTERNATIONAL CREDIBILITY FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the international credibility.

HO: The perceptions on international credibility remain same across the brand.

H1: The perception on international credibility varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

1.726

2

column Within the column (Error)

1.726/2 = 0.863

17.00

57

17/57

0.863/0.29

3.16

= 2.97

= 0.29

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis) Inference: Since, the observed value of F (2.97) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and PAGE| 57

conclude that the Relationship

exists between perception towards the

international credibility is same at 5% level.

H1: BRAND INFLUENCING PERFORMANCE OF THE PAST EXPERIENCE FACTORS. To test this hypothesis, question no.1 was developed on a 5 point rating scale.

The ‘Anova’ (one way) was performed at 5% level to test the relationship between perceptions towards the past experience.

HO: The perceptions on past experience remain same across the brand.

H1: The perception on past experience varies across the brand.

The variance of sum of square (SS) along with the Degree of Freedom (DF) are shown in the table below – Source of variance

SS

DF

Mean square

F value Observed

Critical at 5%

Between the

0.634

2

column Within the column (Error)

0.634/2 = 0.317

17.68

57

17.68/57

0.317/0.310 3.16 = 1.02

= 0.310

FOBSERVED < FCRITICAL (So, we accepted the null hypothesis) Inference: Since, the observed value of F (1.02) is lower than the 5% tabulated value (3.16) corresponding to d.f (2,57), we accepted the null hypothesis and PAGE| 58

conclude that the Relationship does not exists between perception towards the past experience is same at 5% level.

HO

H1

(NULL

(ALTERNATIVE

HYPOTHESIS)

HYPOTHESIS)

Price is liked

Price is not

by

liked by the

the

companies

companies

Corporate

Corporate

image is liked

image is not

by

the

liked by the

companies “Letter of

companies “Letter of

credit” terms

credit” terms

is liked by the

is not liked

companies

by

Supportive

companies Supportive

services

is

the

services

not liked by

companies

the of

ANOVA

F CACULATED

F

HYPOTHESIS

VALUE

TABULED

STATUS

VALUE

22.57

3.16

Rejected

ANOVA

O.13

3.16

Accepted

ANOVA

1.01

3.16

ANOVA

0.65

3.16

Accepted

ANOVA

2.82

3.16

Accepted

Accepted

is

liked by the

Quality

TEST STASTISTICS APPLIED (5%) With DEGREE OF FREEDOM (2,57)

companies Quality of

packaging is

packaging

liked by the

is not liked

companies

by

the

companies

SUMMARY TABLE OF ANOVA

PAGE| 59

PAGE| 60

HO

H1

(NULL HYPOTHESIS)

(ALTERNATIVE HYPOTHESIS)

Terms

&

Terms

&

condition

in

condition

in

terms

of

terms

of

damage

or

damage

or

loss in transit

loss in transit

is liked by the

is not liked by

companies Behavior of

the companies Behavior of

company

company

persons

is

persons is not

liked by the

liked by the

companies Personal

companies Personal

attention the

by

company

persons

attention the

F

HYPOTHESIS

VALUE

TABULED

STATUS

ANOVA

4.57

ANOVA

0.55

3.16

Accepted

ANOVA

5.52

3.16

Rejected

ANOVA

2.97

3.16

Accepted

ANOVA

1.02

3.16

Accepted

VALUE

3.16

Rejected

company

persons is not

liked by the

liked by the

companies International

companies International

credibility

credibility

is

liked by the

not liked by

companies Past

the companies Past

experience

F CACULATED

by

is

is

TEST STASTISTICS APPLIED (5%) With DEGREE OF FREEDOM (2,57)

is

experience is

liked by the

not liked by

companies

the companies

PAGE| 61

PAGE| 62

CHAPTER-8 FINDINGS & RECOMMENDATIONS

FINDINGS:-

PAGE| 63

Nobody likes to be accused or suspected of poor management, no matter what industry they work in. Unfortunately, it is a fact that poor management within a cargo-marketing department is often a significant cause of ineffective cargo marketing. In fact, a number of factors, alone or combined are often to blame.

Collectively, they are referred to as poor management. They include, for instance.  Lack of the right attitude towards the customer (service)-not paying enough attention to what the customer wants from the cargo product  Lack of sufficient planning and goals- leading to a general lack of direction within the cargo-marketing department, which can result in high financial investment for low return.  Lack of information and communication between members of staff in the cargo-marketing department.  Lack of sufficient knowledge of the market place of what competitors are offering, overestimation or underestimation of the level of demand for the cargo product, and so on.  Overestimation of the power of advertising and direct mail within the air cargo industry.  Lack of staff training, motivation, evaluation, technology.

If they occurred simultaneously, of course, the effects of the above problems within a cargo marketing department would be catastrophic.

RECOMMENDATIONS:PAGE| 64

No matter how successful / unsuccessful plans may be when they are put into action, the benefits / losses which they bring must be evaluated so that planners can, learn, not only from their triumphs, but also from their mistakes.

Such evaluation is essential in order to improve upon past plans and produce better ones in future. Marketing plans are not “static’ documents – they must be updated and changed on a continual basis, to keep in step with the changing marketing environment.

The contents of the plans should be communicated to every staff member who needs the information in order to carry out their job successfully.

•

The marketing plan should constantly be updated and reviewed.

•

The contents of the plan should be communicated to every staff members who needs the information in order to carry out their job successfully.

•

Company should give more attractive and creative advertisement through different media.

PAGE| 65

CHAPTER-9 CONCLUSIONS

Conclusion PAGE| 66

Changing business environment has pushed organizations in India to concentrate on their core activities and offload a host of logistics functions to experts in the field. Globally, the range of effective logistics outsourcing includes, apart from transportation, warehousing and custom clearance a whole range of other activities such as freight bill payments, auditing, contract manufacturing and assembly operations, packaging and labeling, freight consolidation to name a few. The practices in Indian industry reveal that: • Warehousing, inbound and outbound transportation, custom clearing and forwarding are the most frequently outsourced activities.

• More and more companies are planning to use 3PL services in the future as an integrated set of services rather than for just movement of material.

• The motivation for doing so comes due to the benefits of logistics cost reduction, ability to focus on the core business, and improving supply chain efficiency.

Though the usage of 3PL services reveals positive and significant impact on business performance, third party logistics practices are still at a nascent stage in India. 55% of companies subscribe to 3PL services as compared to 75% globally and these seem to be more of transportation and warehousing related activities.

Organizations will increase the usage of 3PL services in traditional logistics activities and increase the scope of outsourcing based on the overall satisfaction and the impact on business objectives – logistics system performance, customer satisfaction and employee morale. These indicators should help the 3PL service providers plan the depth and scope of their service offerings in India. They clearly highlight the importance of delivering results that impact the business objectives in order to increase outsourcing opportunities for Indian organizations. It is evident that usage of 3PL services can help organization’s achieve substantial results, both in terms of customer satisfaction and logistics cost reduction. This will form the cornerstone for increase

PAGE| 67

BIBILOGRAPHY:-

BOOKS:  EXIM INDIA YEAR BOOK  KOTLER PHILIP AND KELLER KELVIN “MARKETING MANAGEMENT”  MALHOTRA .K. NARESH (2005) MARKETING RESEARCH (FOURTH EDITION).

WEBSITES: 

www.Google.com



www.hellmann.net



www.indiatrade.com



www.scribd.com



www.wikipedia.com



www.ask.com



www.kolkatacustoms.com

PAGE| 68

APPENDICES

PAGE| 69

APPENDIX – I QUESTIONNAIRE NAME: ORGANISATION’s NAME: AVERAGE EXPORT/IMPORT:

COMPANY

ATTRIBUTES

HELLMANN WORLDWIDE LOGISTICS (INDIA) Pvt.Ltd.

UNION TRANSPORT (INDIA)Pvt. Ltd.

PANALPINA WORLD TRANSPORT (INDIA) Pvt. Ltd.

Price/ charges Corporate image “Letter of Credit” terms & condition Supportive services in terms of Custom clearance Quality of packaging Terms & conditions related to damage or loss in transit Behavior of company persons

PAGE| 70

Personal attention by the company persons International credibility Past experience RATINGS: 5- VERY GOOD 1 – VERY BAD

4 – GOOD

3 – NO OPINION

2 – BAD

ANY SUGGESTION APART FROM THE THINGS CARRIED ABOVE

APPENDIX -2 TABLE NO.1 THE FACTORS THAT INFLUENCE THE PERFORMANCE OF HELLMANN WORLDWIDE LOGISTICS (INDIA) PVT.LTD. : RATING

VERY BAD

BAD

NO OPINION

GOOD

VERY GOOD

TOTAL

WT. MEAN

0

0

0

8

12

20

4.60

CORPORATE IMAGE “ LETTER OF CREDIT” TERMS & CONDITIONS SUPPORTIVE SERVICES IN TERMS OF CUSTOM CLEARENCE

0

0

1

6

13

20

4.60

0

0

5

9

6

20

4.05

0

0

0

8

12

20

4.60

QUALITY OF PACKAGING

0

0

0

8

12

20

4.60

TERMS & CONDITIONS RELATED TO DAMAGE OR LOSS IN TRANSIT

0

0

4

11

5

20

4.05

ATTRIBUTES

PRICE

PAGE| 71

BEHAVIOUR OF COMPANY PERSONS PERSONAL ATTENTION BY THE COMPANY PERSONS INTERNATIONAL CREDIBILITY PAST EXPERIENCE

0

0

2

8

10

20

4.40

0

0

6

8

6

20

4.00

0

0

2

12

6

20

4.2O

0

0

3

13

4

20

4.05

TABLE NO.2 THE FACTORS THAT INFLUENCE THE PERFORMANCE OF UNION TRANSPORT (INDIA)PVT.LTD. : RATING

VERY BAD

BAD

NO OPINION

GOOD

VERY GOOD

TOTAL

WT. MEAN

PRICE

0

0

0

12

8

20

4.40

CORPORATE IMAGE

0

0

1

8

11

20

4.50

“ LETTER OF CREDIT” TERMS & CONDITIONS

0

1

2

6

11

20

4.35

SUPPORTIVE SERVICES IN TERMS OF CUSTOM CLEARENCE

0

0

0

8

12

20

4.60

QUALITY OF PACKAGING

0

0

0

13

7

20

4.35

TERMS & CONDITIONS RELATED TO DAMAGE OR LOSS IN TRANSIT

0

0

0

9

11

20

4.55

ATTRIBUTES

PAGE| 72

BEHAVIOUR OF COMPANY PERSONS PERSONAL ATTENTION BY THE COMPANY PERSONS INTERNATIONAL CREDIBILITY

PAST EXPERIENCE

0

0

1

8

11

20

4.50

0

0

7

6

7

20

4.00

0

0

0

8

12

20

4.60

0

0

0

14

6

20

4.30

TABLE NO.3 THE FACTORS THAT INFLUENCE THE PERFORMANCE OF PANALPINA WORLD TRANSPORT (INDIA)PVT.LTD. : RATING

VERY BAD

BAD

NO OPINION

GOOD

VERY GOOD

TOTAL

WT. MEAN

PRICE

0

6

4

10

0

20

3.20

CORPORATE IMAGE

0

0

0

9

11

20

4.55

“ LETTER OF CREDIT” TERMS & CONDITIONS

0

0

2

9

9

20

4.35

SUPPORTIVE SERVICES IN TERMS OF CUSTOM CLEARENCE

0

0

0

5

15

20

4.75

QUALITY OF PACKAGING

0

0

0

6

14

20

4.70

TERMS & CONDITIONS RELATED TO DAMAGE OR LOSS IN

0

0

0

10

10

20

4.50

ATTRIBUTES

PAGE| 73

TRANSIT

BEHAVIOUR OF COMPANY PERSONS PERSONAL ATTENTION BY THE COMPANY PERSONS INTERNATIONAL CREDIBILITY

PAST EXPERIENCE

0

0

0

8

12

20

4.60

0

0

3

12

5

20

4.10

0

0

0

10

10

20

4.50

0

0

2

13

5

20

4.15

PAGE| 74