NARSEE MONJEE INSNTITUTE OF MANAGEMENT STUDIES

TERM END EXAMINATION

MARKETING MANAGEMENT
INDUSTRY: AIR COURIER

Submitted to: - Submitted By: -

Prof. Barnabas N. Avantika Tickoo (A007)

SAP ID: 80011220361

Divyansh Goyal (A008)

SAP ID: 80011220112

Rishabh Rathi (A029)

SAP ID: 80011220226

Trishla Gupta (A040)

SAP ID: 80011220018

Uttam Agrawal (A043)

SAP ID: 80011220148
 PESTEL ANALYSIS

Political
Forces
Environment Economic
Forces Forces
PESTLE MODEL

Legal Forces Social Forces

Technology
Forces

POLITICAL ASPECT:

The legal aspects pertaining to a country change the preferences and target audience of the air – courier
industry.
• Government policies – In the Indian market, currently no particular permits are required to set up
an express delivery service business.
• Carriage of Dangerous Goods – The Aircraft (Carriage of Dangerous Goods) Rules, 2003, were
designed in such a way that the packaging processes and the clearance system needed for such goods
like deadly explosives and nuclear material.

ECONOMIC ASPECT:

• Economic Growth – It is projected that India will be 3rd biggest economy by the year 2025. It
indicates the enormous size of the Indian market place and the air courier industry can take huge
advantage of this by doing activities required by the businesses to promote their product and services
like product delivery services by Zomato, Swiggy, and Uber Eats. Though there is a fall of 23.9%
in Q1 GDP of the year 2020-21, which can demotivate some businesses to spend on marketing and
refrain from using a new delivery service but delivering the goods through new types of channels is
the only thing which can help them to remain in the business during these unprecedented times.
• Foreign Direct Investment – Indian remains one of the strongest countries to attract FDI globally,
even in the COVID crisis. FDI in India increased to 13% to almost $50 billion in the year 2019-20,
and it is also expected that FDI in India could reach nearly $125 Billion by the year 2025. With this
massive growth of FDI in India, it is evident that the products' market will expand exponentially.
These products will require new channels of transport and delivery, which will play a massive role
in increasing product outreach of other businesses as well.

SOCIO – CULTURAL ASPECT:

• Trends – People's ideologies and attitudes towards the company can have an impact on the service
being provided. E.g., In India, the onset of Make in India initiative has led consumers to prefer
services provided by Indian companies and this perception may cause huge losses for the foreign
air courier service.
• Social Background of Population – Since India is a developing nation and vast proportion of the
population belongs to a class which opts for low-cost services, if the courier company is an elite and
expensive brand, then the company will not be able to achieve success in India as the purchasing
power of the population is low.
• Demographic factors – Currently, airports are available mostly in tier 1 cities of India. The
development over the past few years has led to airports being constructed in tier 2 cities, which will
lead to an increase in demand for air couriers in these cities as well.
TECHNOLOGICAL ASPECT:

• The increased use of IT tools has allowed the industry to track all shipments and provide greater
transparency on the same to the customer base of the air-courier industry.
• These tools have greatly helped the industry in increasing its operations. However, the development
of technologies like emails, faxes, e-payments etc., has enabled the customers to deliver the
information and carry out activities on e-channels, thereby reducing the need for shipment of
documents. This has an adverse impact on the demand for delivering the cargo.
• With everyday growing technology, every customer’s interests can be tapped and can be used to
display ads that trigger the click rate and purchase of the goods, which will increase the business
for the express services. With the evolving environment, industries have shifted from traditional
methods to modernized tactics and are focusing on customer engagement.

ENVIRONMENTAL ASPECT:

• Customer Loyalty: Providing an environment friendly service and reducing emissions is

beneficial in several ways for the business. Businesses that have an environment-friendly image
enjoy a high level of customer loyalty.
• Relaxation from Government: Government promotes services that are environment friendly. It
also gives various incentives to the company in the form of reduced tax rates.

LEGAL ASPECT:

• Consumer Protection Laws – Customer privacy has become a major priority in the current
scenario as every device captures information in an individual's data-sharing habits. The
government also regulates this by ensuring that consent from the individual is taken before data is
captured. Subsequently, the company must keep this in mind while delivering the package and
adhering to government policies.
• Import and Export Laws – Originated in one country and operating in another, the company must
keep in view the political conditions of the regions that they operate in. In India, the political
conditions are unstable, this will affect business and result in more costs and fewer sales. Only
authorized express service companies registered with the Customs can handle import and export
cargos. There are prescribes weight limits and cargo categories that are not allowed to be imported
or exported by express delivery services and lay down the authorized courier/express services
providers' obligation.
 MARKETING PLAN
INDUSTRY: Air Courier

EXECUTIVE SUMMARY:

Customers desire their goods to be delivered as expeditiously and safely as possible, like the online
purchases they have made. Un-crewed Aerial Vehicles (UAV) or Drone Delivery is the future of logistics.
DoDo is an intracity delivery system from Blue Dart designed to safely get packages to customers in 30
minutes or less using unmanned aerial vehicles, also called drones. DoDo has great potential as it will be
providing rapid parcel delivery within the city that will also increase the transportation system's overall
safety and efficiency and the items being delivered.

MISSION STATEMENT:

DoDo is a service that will deliver packages up to five kgs in 30 minutes or less using small drones in
contact with less, fast, and secure manner for our customers. "Amenities for a comfortable life" was
engraved in and drove our innovative minds, and we come with the best for our customers every time.

SITUATIONAL ANALYSIS:

Product/Service DoDo (Intra – City Door – to – Door Drone Delivery Service)

Unique Selling Speedy and Smooth delivery with minimal human contact
Proposition

Marketing Objectives • Promote New Services • Increase Profit

and Performance • Lead Generation • Expand into a New Market
• Develop Brand Loyalty • Grow Market Share
• Increase Sales and/or
Revenue

Challenges People Cynical about Issue of Safety

Sensors might malfunction sometimes
Approval pending from DGCA

Competitor Analysis Competition with Roadways Delivery Services

Pricing comparison with other delivery services

SWOT Analysis

Strengths Weaknesses

• Limited competition; First mover’s • Limits the flying and carrying capabilities
advantage • Limited battery life
• One-time investment; Minimal variable • Landing at a safe place can be a hindrance
costs • Bad weather can cause delay in delivery and
• Fast delivery, no hindrances of traffic. cause damage to the product and drone.

Opportunities Threats

• Drones are a new technology that can be • Permissions and licenses from the
expanded in various fields and sectors. government can be an obstacle.
• Collaborate with suppliers and developers • Small packages of commercial products can
of this technology will create suitable also be used to carry dangerous materials.
options to enter a market that is in the • Vandalism against the drone or theft of the
beginning of a remarkable expansion. product
TARGET MARKET:

Target Companies:
We will be starting our new service by targeting the B2B sector; our target audience is the restaurant
chains, retail stores/supermarkets (Reliance retail, Lifestyle.), and chemist stores and generic medicines.
We will be acting as delivery agents for the businesses mentioned above.

Ways to Reach:
Tie up/ Partner with big restaurant chains (Domino's, McDonald's) and share our proposal about the
advantages of drone delivery. The food and beverage industry (organic vegetable market) is also a viable
market and can be looked like a first proposition for developing the business.

Why DoDo?:
• We are creating a different platform for enhancing partnered clients; it will also increase
restaurants' visibility to other customers.
• Restaurants and retail outlets will pay a fixed amount for each delivery; since variable costs are
low for drones, we will keep the fixed as well as variable costs low as compared to competition
to attract more clients.

Scope for Improvement:

• Product damage can be a concern for the client, especially during bad weather.
• If the battery dies during the flight, then delivery will not be possible.
• Buildings and proper stations need to be established for the appropriate landing of the drone.

Current needs of the Market:

• Increase sales, and mainly owing to the pandemic, customers prefer contactless delivery.
• Many restaurant chains have been affected during these unprecedented times, and many small
restaurants have been adversely affected due to the COVID pandemic. DoDo can directly
approach these small food chains and act as a delivery medium for these, increasing their revenue
and sales and capturing the market share and helping us grow our business to gain more profits.

PRICING STRATEGY:

Pricing Strategy Chosen:

Base It on Costs Base It on Competitors Skim It Penetrate It Bundle It

Why Pentration?:
Since many direct competitors are already providing door-to-door service in the Market, Penetrate is an
ideal pricing strategy for our product. Penetration pricing strtegy used by us to attract customers to our
newly launched service by offering a lower price during its initial offering. The lower price will help the
service penetrate the Market and attract customers away from competitors and subsequently capture more
market share. Our current aim is to expand our business and capture as much market share as possible.
Therefore the costs which will be incurred by the customer have to be in alignment with the competitors.

Pricing of DoDo:
Product/Service Price

DoDo Intra-City Door-to-Door Hands Free • Fixed Charges - ₹30 up-to first 4 kms.**
Delivery Service • Variable Charges - ₹7 for every km thereafter.

**The charges mentioned above are specific for a package weighing up-to 3 kgs and
may increase accordingly with the weight and the distance to be covered.
FINANCIAL ANALYSIS:

COST SUGGESTED RETAIL

RESEARCH & DEVELOPMENT INCURRED 5,000 PRICE
LESS RETAIL
INVESTIGATION COSTS 2,50,000 1,250 DISCOUNT (25%)
COST OF DRONES 18,00,000 3,750 PRICE TO RETAIL
LESS WHOLESALE
WAREHOUSE COSTS 28,80,000 750 DISCOUNT (20%)
COST PRICE OF
MAINTENANCE STAFF 1,08,00,000 3,000 DRONE
TOTAL 1,57,30,000
ANNUAL COSTS 2021 2022 2023
PRODUCER'S PRICE PER UNIT 3,000 3,000 3,000
VARIABLE COSTS PER UNIT 1900/month 1995/month 2095/month
FIXED COSTS PER YEAR 18,00,000 2,70,000 3,12,000

RESEARCH AND TOTAL SUGGESTED SUGGESTED PRICE TO BE

DEVELOPMENT NUMBER NUMBER OF DISTANCE TO CHARGED/KM
DELIVERIES/ BE
YEAR COVERED/DE
LIVERY
RESTAURANTS 40,000 1,46,00,000 3 kms. 7
PHARMACIES 25,000 3,65,00,000 5 kms. 10
GROCERY STORES 1,50,000 65,70,00,000 2 km. 7
TOTAL 2,15,000 70,81,00,000
ANNUAL SALES TOTAL 2021 2022 2023
NUMBER
TO BE
COVERED
RESTAURANTS 2021 – 50
2022 – 70 76,65,000 1,07,31,000 1,39,50,300
2023 – 91
PHARMACIES 2021 – 20
2022 – 30 14,60,000 21,90,000 30,66,000
2023 – 42
GROCERY STORES 2021 – 30
2022 – 45 18,39,600 27,59,400 38,01,840
2023 – 62

INCOME STATEMENT 2021 2022 2023 (BREAK EVEN POINT)

SALES REVENUES 1,09,64,600 1,56,80,400 2,08,18,140
VARIABLE COSTS 1,36,80,000 1,65,18,600 1,99,61,160
FIXED COSTS 18,00,000 2,70,000 3,12,000
PROFITS -9,15,400 -5,68,200 11,68,980
DISTRIBUTION STRATEGY:

Distribution is fundamentally concerned with ensuring that the service reaches target customers in the most
direct and cost-efficient manner. Our distribution strategy will concern that the service reaches target
customers in the most direct and cost-efficient manner. We will focus on selective distribution and under
that target specific locations owing to certain boundaries of proper landing of drones. We will choose
locations for our clients where drones can move around without hindrances that can damage the drone or
the package being carried. Drones will be kept at the nearby warehouses and will fly to the required
destination as per signal. Strategically, there are three approaches to distribution which we have used:

INTENSIVE

No cap on
Penetration
stores or
Strategy
locations
Reach as many
outlets as
possible
SELECTIVE
Targeting Target loyal
specific customers
locations
Limited
number of
stores
EXCLUSIVE

High end Target posh

exclusive locations
brands
Limited
number of
outlets

PROMOTION STRATEGY:

AVAILABLE TRACTION CHANNELS:

PUBLICITY MARKETING: In marketing, publicity is the public visibility or awareness for the
service. Networking is critical to any business. It is essentially a gateway to new clients. Word-of-mouth
communication is everything to service businesses and we will be using this mode to extensively
publicise our service. E-mail marketing is easy, inexpensive, and if done right, will have a high return on
investment. All businesses use emails regularly, so it is an obvious way to stay connected to current and
past clients, as well as future-prospects. Information about our services, a new blog post or local charity
work are all worthy content for an email campaign which will be used by us to promote DoDo.

DIGITAL MARKETING:
• Research and Demographic Targeting
• Engaging and Informative Website
• Effective Website Search Engine Optimization
• Segmenting Your Pay Per Click Campaigns
• Social Media
• Video Ads and Content
• Referral Marketing

TRADE SHOWS: We will set up kiosks at trade shows and showcase live demonstrations of how a
drone works, we will use this platform to educate and inform our audience about how effectively our
product delivers packages. Apprehensions about drones and major misconceptions about its accurate
delivery shall also be cleared to give a better understanding about our service.
FUTURE GROWTH:

The drone package delivery market is growing exponentially owing to the increasing demand for faster and
instant delivery across the globe. Other important factors impacting the Market's growth include the
amendments in regulatory frameworks to encourage drone package delivery, increased use of low-cost &
light payload drones for product delivery by start-ups, incorporation of advanced sense and avoid systems
aerial delivery drones, and rising demand for lowering carbon emissions.
 STP ANALYSIS

SEGMENTATION:

Market Segmentation for our product-

• The geographic segmentation divides the market according to geographic areas, like- city, country,
and region.
• The demographic segmentation will require Bluedart to split the market according to demographic
characteristics, like – gender, age, income, and ethnicity.
• Behavioural segmentation, our clients/associates will be divided according to their buying patterns
like usage frequency, benefits sought, usage occasions, and brand loyalty.

Using the segmentation mentioned above, based on secondary research, we found various customer
behaviour and interests. The results were:
GEOGRAPHIC SEGMENTATION

• NORTH: Hilly Terrain and Strong winds are a generic environment in North, which held back the
people from believing in our endeavors but still with a mix of tier 1,2 and 3 cities, we got a 22%
market interest.
• EAST: East India contains dense rain forests and suffers heavy rains throughout the year; hence
people were not wildly convinced of service being provided any time soon, so only 7% of the people
opted for the service.
• WEST: west mostly contains coastal regions and tier 1 or tier 2 cities; hence, newer
technology's demand was expected. The market survey came out to be as hoped for with a mind-
boggling 30% of people interested in the service.
• SOUTH: South India as the highest literacy rate and a much moderate climate wit only summers
being a little adverse. With the best mix of Tier 1 cities and suitable terrain for function, our service
achieved a 40 % acceptance rate.

DEMOGRAPHIC SEGMENTATION

• INDUSTRY: Through our surveys, we concluded that the restaurants and food joints sector had an
acceptance rate of 47 %. Simultaneously, there was only a 19 % rate of acceptance of all other
industries taken into consideration during the survey.
• COMPANY SIZE: Restaurants are divided into Family Dining, Full-Service Casual Dining, Quick
Service, and Quick-Casual. Retail stores are divided into small Kirana stores and big retail giants
like Reliance Fresh, More for you, Spar, Spencer's, etc. Local nearby chemist shops or in-house
chemist stores of a hospital.

SITUATIONAL SEGMENTATION

• URGENCY: Due to time constraints and conditional delivery schedules in restaurants and retail
outlets and grocery shops, our service reflected a 50% acceptance rate.
• SPECIFIC APPLICATION: Restaurants, the food delivery sector, and the retail sector have
shown a 62% acceptance rate for our service as a replacement for their current delivery systems.
• SIZE OF PACKAGE: As our service provides a maximum of 6kg of load in a single go, it gave
us a 35% acceptance rate in the food delivery industry and retail supply.

CLIENT CHARACTERISTICS SEGMENTATION

• ATTITUDE TOWARDS RISK: As the restaurant and food delivery industry does not find much
risk in our service, we could get a 43% acceptance rate in the delivery and distribution sector.
• LOYALTY: As in the business sector, once you start giving a service to the operations of an
organisation, they tend to keep those ties for the long term; hence our survey shows a 29%
acceptance rate.

TARGETING:

We made use of audience insights tools to evaluate what our B2B clients are looking for. This helped us in
creating Detailed Marketing Personas of our Target Audience. Our focus is on local eating joints, cafés,
retail outlets like Reliance, pharmacy stores, grocery stores, post office, etc. After segmenting our potential
client base, in terms of market size and growth potential, it was evident that we need to target based on
product specialization by targeting them by their industry, company size, and location. We are looking to
target restaurant chains like Domino's, Subway, etc., cloud kitchens like Fassos, retail stores like Reliance
Retail, pharmacies, and supermarkets like Spar, Spencers, D-Mart. We are targeting such chains as they
have multiple outlets in cities over the country. Our firm will attempt to serve the maximum possible
customer groups. We would cater to diverse customers who seek our services from the retail sector,
pharmacy outlet, or restaurants. Based on market size and expected growth rate, we have selected these
segments, which depict the maximum potential to boom in the upcoming years.
 M1 M2 M3
P1
P2
P3
POSITIONING:

We, as a drone delivery service, are a perfect alternative for rising fuel costs and maintenance. The drone
will reach the client location and pick up the package from the door of the client's site and flies off to the
end customer location and delivers the package after scanning for a QR code strictly generated for the
individual customer. We aim to create an illusion in our potential customer's mind as one of the quickest
and safest delivery options present across the nation's length and breadth. We promote the concept of the
contactless door to door delivery by merely a click of a button. Such seamless delivery is feasible only via
High-tech drones that ensure hygiene is maintained and reduce the waiting time for end-user significantly.
Other traditional means of transport will get affected by traffic; drones are immune for apparent reasons.
Drones are smaller, light-weighted that provides emergency response incase any lifesaving drug is needed.

We will promote our service throughout Delhi NCR via effectively designed hyper-targeted advertisements.
We are tapping influencers to capture footage during the introductory phase of the service launch, followed
by promoting a feel-good message of social responsibility generated via shareable video that lives on even
after the campaign is over. Placing advertisements on community-based newspapers, emails, and live
demonstrations in trade shows will act as a traction channel for our service. Word of mouth publicity will
also be one of our key focus areas to increase outreach and branding awareness about our service. We will
be advertising our commercial drone delivery services on our official website and employ email marketing
and other digital media strategies that will help us pull traffic to the website.

BIBLIOGRAPHY (used for secondary research for STP Analysis)

https://www.prnewswire.com/news-releases/drone-delivery-data-36-of-online-shoppers-are-more-likely-
to-purchase-an-item-delivered-by-drone-300989686.html

https://www.marketsandmarkets.com/Market-Reports/drone-package-delivery-market-10580366.html

https://www.imeche.org/policy-and-press/reports/detail/public-perceptions-drones.-survey-results-2019