Introduction

Tranzum Courier Services Express, or better known as TCS Express, is a service-oriented company based in Pakistan which specializes in the dealing of carriage-able goods and documents. TCS Expresss operations start from the doorstep of the customer and end at the desired place through the most secure and reliable services. TCS Expresss mission, as described by Jamil Janjua, Group CEO at Tranzum TCS Express Worldwide, is to provide valuable service to customers which will not only contribute towards the consumers success, but also towards the profits of the company. MilestonesThrough investing into its business model and realizing customer needs and expectations, TCS has been able to achieve many milestones over the years of its operations. These milestones have indeed set quality standards and benchmarks for the express courier service. 1983 TCS was found in Pakistan, with 12 stations & 25 booking first day1985 Countrywide Network Expansion to over 100 locations to meet Pakistan Banking Council need1989 Established Unique Gift Delivery Service, Sentiment Express (Gifts & Greetings)1990s Emerged as the leading courier company in Pakistan (High Growth Years)1992-96 Diversification (Air Cargo and Trucking)1997-2000 International Expansion (UAE & Canada)2001-02Major Investments and Re-structuring of domestic operation2002 Formed TCS Aviation in order to become self-reliant International Expansion (UK) Formed Road Transport Company (Renamed TCS Logistics in 2006)2003 Recognized in Harvard Business Schools Case Study2004 Ground Breaking of TCS customized operations and corporate office at Karachi Airport, Total Area: 5400 sq yards; Established Visatronix; Acquired non-resident visa facilitation rights for the embassy of Canada, High commission of India, Embassy of Spain, Italian Consulate Karachi; Formed TCS Air & Sea Freight Division; Formed Travel & Tour Company (INTIANA & VISATRONIX); Formed TCS Management Development Services Company (OCTARA);2006 Established Mail Management Solutions division & Print shop; Acquired non-resident visa facilitation rights for Embassy of South Africa;2007 TCS awarded Super-Brand title; TCS awarded Brand of the Year award; TCS won 1st Telecom Excellence Award; Implemented ISO 9001:2000 in TCS Logistics;2008 Brands of the Year Award; Brands Icon of Pakistan; Completed 25 years; Acquired non-resident visa facilitation rights for Embassy of Malta; Won the Logistics & Printing project of Election Commission of Pakistan;2009 Acquired non-resident visa facilitation rights for Embassy of Egypt; Acquired non-resident visa facilitation rights for Malaysian Embassy Karachi; Through investing into its business model and realizing customer needs and expectations, TCS has been able to achieve many milestones over the years of its operations. These milestones have indeed set quality standards and benchmarks for the express courier service. TCS TodayToday TCS is known for its trust and reliability element and has a strong presence not only in Pakistan, but also in the Middle East and North America. The company provides both domestic and international services to consumers, corporate, SMEs and households and is now the biggest network in the country. Following are some relevant figures regarding the operating scale of TCS: Monthly pickups and deliveries: 6 million Offices: 155 Continent of operations: 5 Professionals working with TCS: 7000 Express Centers: 530+ On-line and off-line locations: 2000 Satellites tracked delivery vehicles: 250 Chartered planes: 2 Couriers: 3000+ Employees: 6000+ Destinations: 3500Currently, TCS operates with seven registered companies: five in Pakistan and one each in the United Kingdom (UK) and United Arab Emirates (UAE). TCS is the only logistics company in Pakistan that flies its own aircraft and also operates a 24/7 call center. TCS is headquartered in Karachi, near the Hajj Terminal at the Karachi Airport, and provides express and logistics services in the following segments: Consumer-to-consumer Business-to-business Business-to-consumerKey Elements of the Marketing StrategyTarget marketThe services offered by TCS are such that they are required by all nearly all businesses weather large scale or small scale. Consequently TCS target market consists of the business market or the corporate sector.The corporate sector, the two major target areas for TCS are banks/financial institutions and export/import sector.Banks and financial institutions are the major target markets which generate a large percentage of its revenue. The main product is DOX in order to send drafts, cheques, agreements etc. TCS has traditionally remained dominant in this sector as it provides timely and speedy delivery.Another major target market of TCS is the export/import sector. It attracts businesses by offering different sized packaging and ensuring a safe and timely delivery of their goods.TCS also targets consumers. For example its students express and sentiments express targets customers looking for a quick and economical way to deliver goods or documents to places inside and outside their locality.Consumer Buying BehaviorThe typical customers are categorized into two classes, the business class and the private class. The major reason why TCS is the market leader in the courier service is because of the perception that is associated with its brand. TCS is perceived as a value for money, efficient and timely method of sending things through courier services. The typical consumer perception varies from category to category. Firstly we will be discussing the typical buying behaviour of the business class clients. Business ClassThis class usually consists of organizations; they outsource their courier needs to TCS. The main reason why they outsource their courier services to TCS is because of the timeliness factor coupled with the largest network a courier service has. This visibility gives TCS a great edge over competitors like DHL and OCS. Also the rate of the services provided is much lower than those of its competitors; this is one aspect that appeals to the profit oriented organizations. But theres a flip side to the rosy coin, in international courier services, these very same profit-oriented organizations choose DHL or FedEx as a courier service provider over TCS because of the fact that TCS has relatively lesser visibility in the global arena. The effective distribution in international arena is limited to certain countries. Also for international deliver TCSs charges are higher than its competitors. All in all, if summarised the business class is an active customer class for TCS that is affected by the prices they charge for their services.Private ClassIn the private class category, the main reason why people choose TCS over other courier service providers is because of the trust-bond they have come to associate with TCS. Many people in the class trust players that are reputed, and have been providing such services for the longest time period. TCS was the pioneer in the courier service provider category; this is the biggest reason many private customer use TCS over other service providers. Also many consumers that represent the younger generation associate innovation with TCS. The various event based promotions is seen as an innovative step by many young consumers and hence they like to try TCS products and services. Many people are swayed by the timeliness of the service by TCS when compared with OCS and other courier service provider. Having a vast number of outlets throughout Pakistan has enabled TCS to minimize time lags to a bare minimum and this has helped attract customers by earning their trust, through delivering their packages on time.One of the best Supply ChainTCS has established one of the most remarkable supply chains in the courier service industry. Headquartered in Karachi, TCS today provides express and logistics services in the C2C, B2B and B2C segments. It has a wide network of 140 offices, making it the biggest courier of the country. In addition, it has over 350 retail outlets and over 2000 service locations worldwide. It has a fleet of 5 planes, 200 vehicles, 3000 bikes and 6000 employees to facilitate its operations. The new state of the art building is located near the port making TCS more efficient (Kotler, 2008). The most important aspect of the TCS supply chain is that it has established a value delivery network. By installing a customer friendly distribution system, TCS has achieved a leadership position in the express courier industry in Pakistan and is adamant to expand globally too (Kotler, 2008).

Marketing MixThe marketing mix consists of four elements: Product, Price, Promotion and Place. We will talk about each one in light of TCSs marketing strategy.Product 1) International express services TCS operates in UAE, UK and Canada, other than Pakistan. it offers excellent speedy and fast delivery services internationally and covers about 3500 destinations across the world through its extended international network. Its international express services include:

1. Freight plusThis offers delivery of less urgent and large size shipments within 10-12 working days. But this service is not for domestic goods, its exclusive for export shipments. Moreover customer clearance is also provided.

1. Red box TCS has come up with a red box to help customers safely deliver anything they want to from toys, books clothes to shoes or other accessories. The box is simple and, convenient and also cost in effective. Things can be sent to residents in UK, USA, Canada and Far East. TCS has gone out of its way to help customers show their loved ones how much they care with the innovation of the red TCS bx. Everything from its red attractive color to its material helps make the delivery service unique and safe. The box is available in two different weights ten kg and twenty five kg.

1. Students expressThis service is especially for students. It delivers their documents to colleges, universities and other educational institutions anywhere in the world. To avail this service the student has to submit a copy of his/her id card along with the documents to be sent and the rest is taken care of by TCS.

2) Domestic express services

TCS is known as the most trusted name for delivering a wide variety of documents, packages, parcels, and cargoes within Pakistan. This includes:

1. MMSMail management solutionMMS ensures continuous delivery of value. TCS imported state of the art printing and sorting technology from the best suppliers in Europe and Asia pacific. This has allowed TCS to operate as the only end to end solution provider in the category with the largest delivery network in Pakistan.

1. Sentiments expressTCS sentiments express handles the gifts delivery service. It was started when the management realized there was huge demand from consumers wanting to celebrate various occasions like Eid or birthdays with their friends, family, and colleagues residing in a different city. TCS saw that these customers did not have an easy and cheap way to deliver gifts to their near and dear ones. So TCS came up with sentiments express which makes it easy for customers to deliver personalized high valued gifts safely. TCS offers a wide array of gifts ranging from gourmet cakes, floral bouquets, to various other gifts wrapped in a unique and attractive way , adding more meaning to peoples celebration.

1. Same day express

1. Overnight express

1. Red box

3) Logistics servicesTCS rightly saw potential of supply chain management in Pakistan and introduced its logistics wing as a registered company in 2002.

1. Overland expressTCS overland express is the market leader in door to door goods transportation in Pakistan by land through forty to fifty containers. This is especially suitable for companies that have to transport goods or merchandise in bulk to different cities all over the country within three days. Moreover packaging facility is also available. The main product offering are: LCL (Loose container Load) FTL (Full Container Load) Hub to Hub delivery Hub to Door delivery Pallet boxes of 50 Kgs. Built-in insurance of Rs 100 per kg1. Ware house and distributionThe W&D division provides total logistics and supply chain solutions in Pakistan. it has one of the most modern and efficient tools in warehouse management and out of the box distribution models. PromotionTCS does not indulge into mass promotional activities like DHL does. The reason that TCS does not invest in mass marketing is because of its loyal customer base, also promoting itself on billboards has not being effective in the past. The only TV commercials that TCS does are for special occasion like Fathers Day etc. But even those advertisements were discontinued, since the cost incurred was greater than the actual outcome of the advertisements. On the other hand to create awareness of its occasion based schemes, media such as radio and newspaper are used extensively. The main concern is cost. The cost incurred in having a print advertisement and radio commercial is lesser than running an advertisement on TV. Also TCS is investing itself into e-marketing, whereby we saw that TCS ads started appearing on Facebook and other popular websites. Print MediaThe infrequent nature of occasions makes way for advertising only for a limited time at a specific time of the year. This saves the overall cost as compared to having a TVC running all year round. This is an effective method of promoting its products and services, as it pin-points the targeted consumer effectively. RadioAnother media that is extensively used by TCS is radio. The major reason being cost. The cost incurred is lesser than running promotional content on TV. Another activity that TCS employees carry out is that they attract new clientele through radio, is the concept of giveaways. On selected events, give-ways are given as prize to random people who take part in a contest being held by TCS through radio.CSR initiatives by TCS

TCS takes customer social responsibility very seriously, it has made it a fundamental part of its business. TCS has worked in collaboration with a lot of NGOs and governmental organizations such as SIUT, SOS village, drug enforcement cell among others to work towards a peaceful and prosperous society.10th young leaders conference 2011This 6 day conference was an activity based event. The main idea was to make young aspiring minds to think creatively on the current issues of Pakistan. In essence the discussion led the young generation to believe that there is a bright future possible for Pakistan.

TCS and PUKAR relief workTCS joined hand with PUKAR an NGO, to work towards rehabilitation of oppressed people of Swat. Also TCS has placed donation boxes for PUKAR throughout its network across Pakistan. In essence it is working towards the rehabilitation of the internally displaced people.

TCS joins hand for relief workTCS joined hand with leading media partners to work towards relief work for those affected by the recent floods in Pakistan. TCS accepted donations in the form of cheques and cash for this noble cause, and established relief donation boxes across its entire network within the country.

PricingThis section will delve into the pricing strategies adopted by the Tranzum Courier Services and will critically analyze their efficacy in the domestic and international context.A significant way of achieving high profitability is to retain existing customers who contribute to the service providers revenue by continuously purchasing and paying more for products and services and building brand equity to the provider. Achieving and maintaining a high market share and a high price premium through attracting and retaining a loyal customer base is particularly significant in a business-to-business and business to consumer market (Rauyruen, Kenneth, & Groth, 2009, p. 175). Pricing is very important tool of any marketing mix and even more important in Pakistans courier service industry which is monopolistically competitive. Loyal customers are insensitive to price changes, which is also the case with TCS to some extent. However, the advent of numerous local and international players in the global Courier service industry has affected the consumer loyalties worldwide and customers are more likely to switch between service providers than ever before (Boronico, 1997, p. 80). Moreover, in TCSs case, the firm is operating in a developing market with an escalating consumer base, thus, pricing is very important for the organization which will not only help it to attract new customers, but also allow it to sustainably retain them.TCS practices three different kinds of pricing strategies due to different nature of the business. The service it provides differs because TCSs services vary from the type of customer to the level of service to be offered and the geographical proximity of the service. Thus the pricing model needs to be completely different from that of traditional product manufacturers or service providers since the nature of their products and services is fixed, unlike the case of TCS where one business may want to send a parcel to Kazakhstan and at the same time a consumer may want to send a parcel within Karachi.To cater all these deviances in the extent of services provided due of the nature of the business, TCS have adopted numerous pricing strategies for different business units and consumer & business groups. Just like all the travel and courier business in the world, TCS too practices Geographical pricing which is quite evident from the TCS rate list attached in the appendix 1.Geographical Pricing TCS practices extensive geographical pricing and the extent of it can be comprehended by the types of geographical pricing it has adopted. TCS has adopted five different types of geographical pricing strategies. The most important ones from them are uniformed delivery pricing and zone pricing. Uniformed PricingUniformed delivery pricing is mainly practiced in Sentiments Express in which the cost of cake with its delivery will remain the same no matter to and from which location it is sent.Zone PricingZone pricing is mostly practiced in international courier services. As it can be seen from the TCS rate list in appendix 1, the international prices are categorized into different zones and each zone has a different price from other zones. The price stays the same no matter which location in the zone courier is sent.Freight Absorption PricingSentiments express also uses freight absorption pricing to some extent as the products offered by sentiments express are not charged for freight charges. Now whether the freight charges are included in the price or TCS intentionally absorbs them to penetrate market is another case.Dynamic Pricing

The essential characteristic of dynamic pricing is that prices are adjusted continually to meet the characteristics and needs of individual customers and situations. This pricing is mostly practiced in domestic & international mails and parcels. TCS offers a basic rate and then rates of specific different services can be added to the basic rate if the consumer wants to avail services that are not being offered in the basic rate free of cost. For example, if Mr. A wants to send a mail from Karachi to Lahore, then the basic rate is Rs. 140 per kg, however an additional surcharge is added if the mail is to be sent by same day express, which will deliver it same day rather than on the next working day .International Pricing

It is very important for companies that operate internationally to set prices that are reconciled with each and every individual country. The most important price determinant in the international courier industry is the existing prevailing prices in the industry. TCS also practiced international pricing strategy as it operates in many other countries other than Pakistan along with major industry players like FedEx, DHL etc. Appendix 2 & 3 show the prices of TCS that are aligned with the international prices of major multinational companies. It can be deduced from the data that TCSs international prices are not very different from the FedEx international prices.Pricing problems

TCS is currently serving both B2B and B2C customers consecutively without any differentiation. For example, the mail delivery service is simultaneously used by business and other individual consumers and it is extremely implausible to differentiate between them with respect to marketing. There are separate services offerings for consumers and businesses but on many occasions directly go for the consumer service being offered. This is one of the issues TCS faces with respect to pricing. TCS does not practices competitive pricing which is evident from the comparison of TCS rates with that of local courier services. Appendix 4 shows the rate list of Leopards Courier Services, which is the biggest competitor of TCS in Pakistan. It can be noted from the comparison of Appendix 2 & 4 that TCS has quite high prices than its competitor because TCS believes its services are of better quality and does not believes in competitive pricing on cost of quality compromise.

EXTERNAL FORCES IMPACTECONOMIC ASPECTAs Pakistan is an emerging nation with a growth rate of 11.5% it has become an attractive destination for the foreign companies to invest in. This trend is favorable for the courier industry because new companies will start of their operations in Pakistan in nearly every sector, form banks and automobiles to telecommunication etc, they will seek courier services companies to carry out their processes because they want their bills and other important documents to be delivered on time with a proof of deliveries. Besides, GPD is also increasing with its direct impact on per capita income. Per capita income in turn affects the disposable income. With the increase of disposable income the buying power of the consumer also increases, making them switch from the Pakistan postal services to courier service industry.POLITICAL & LEGAL ASPECTStability of the government holds a very important position in the courier industry because when the new government takes the charge, they develop new legal policies that affect nearly all business environments. In the present government, the monetary system and its activities are fully functional. Access to loans from the bank is now an easy option, increasing the buying power of the common customer and is favorable for the courier service industry.SOCIAL/CULTURAL ASPECTCelebrating mothers day and Valentines Day in Pakistan is clear evidence, showing the impact of highly influential American and European culture. Besides this, media and foreign channels are changing the life styles of the people, making it faster day by day. Now customers demand quicker, faster and reliable services. With these changes in our culture, the courier service industry has to keep pace with the new trends by offering customers the required needs.TECHNOLOGICAL ASPECTTechnology is changing on daily basis offering businesses new dimension to carry out their operation. Similarly, in the courier service industry, technology is playing a very important role in providing faster and reliable delivery services. Though these technologies demands major investment by the company but in turn deliver productive results in terms of profit and gaining competitive edge.