According to a recent survey, transportation and logistics companies fall behind other sectors in terms of offering employment opportunities.
Logistics can be defined as the relative movement of goods from the manufacturing point to the point of delivery. The logistics industry can be broadly segmented into roadways, waterways, railways, and airways. Among these segments, road transportation has gained massive popularity owing to benefits such as flexibility in operations, easy accessibility, and high demand for door-to-door service offerings. Although the logistics industry is witnessing promising growth due to the relentless growth in global trade and advances in technologies, several factors are expected to hamper the growth of the market over the next few years. Some of these factors are:
- Economic fluctuations: In this volatile market landscape, the supply of goods and services has been greatly affected. Furthermore, with the sluggish growth of the economy, consumers’ spending on new products and services has narrowed down drastically. This, in turn, has affected the growth of the logistics industry.
- International trade flow: Trade becomes a primary concern for the movement of products from the manufacturing point to the final destination. The transportation industry heavily relies on efficient trade practices for their financial stability. With the recent setback in trade practices, transport and logistics companies are finding it increasingly difficult to meet the requirements of the target audience.
- Robust government regulations: Since compliance regulations vary according to the states, organizations must comply with these regulations to avoid hefty fines and reach out to their customers. With the recent rise in the international trade, organizations in the logistics industry have started focusing more on meeting global regulatory standards and devising plans to distribute goods in a cost effective manner.
To address the customers’ requirements and offer effective transportation services, logistics companies should develop an effective marketing strategy. Marketing strategy helps organizations address the customers’ requirements and devise new strategies to market the offerings. Marketing strategy also focuses on identifying and analyzing the primary market as well as the secondary market and assesses the competition prevalent in the market space.
The Business Challenge
- The Client: Logistics company
- Area of Engagement: Marketing strategy
[spacer height=”20px”]A prominent client in the logistics industry wanted to profile and identify their potential competitors and devise an effective marketing strategy to stay ahead of the competition. The client wanted to understand the prevailing technologies in the logistics industry and enhance their service offerings with the help of high-tech tracking tools. With the help of Infiniti’s marketing strategy, the client wanted to build a better plan to target new customer segments and accordingly allocate marketing budgets.
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To devise a robust marketing plan, Infiniti’s marketing strategy experts followed an extensive research methodology comprising of interviews and discussions with leading stakeholders in the logistics and transportation industry. Furthermore, to help the client design a budget that is specific to the target market, the client also compiled information from a wide array of secondary sources including paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
With the help of Infiniti’s marketing strategy solution, the logistics industry firm was able to streamline their transportation process and tap into potential market segments. The client was also able to better manage inventory levels and enhance customer service. The solution offered by Infiniti also focused on improving the flow of information across potential channels and offering offer better visibility into the supply chain. The rising use of innovations also helped the logistics industry client formulate better communication between the client and the end-users.
The future of logistics industries will be marked by technological innovations, especially in terms of automated material handling equipment, GPS, warehouse control software, and RFID technologies. These technologies will help the companies run their businesses more seamlessly and proficiently in the coming years.