Dec 12, 2003

BRAND BATTLES: DHL rebrand lends fire-power against rivals

As express carriers vie for marketshare in a ruthlessly competitive category, how the big four brands achieve cut-through is far from uniform. Olivia Toth reports.

BRAND BATTLES: DHL rebrand lends fire-power against rivals

When it comes to sending that do-or-die package and time is ticking, choosing an express carrier depends on two vital elements: experiential quality of service (whether your package got there on time previously, with drama kept to a minimum) and what that brand says to you.

The acquisition of DHL Express by parent Deutsche Post World Net in 2002 and its integration in Asia-Pacific with logistics giant Danzas Air and Ocean played out in 2003's rebranding offensive; bringing its 'More power' message out via a new red and yellow identity emblazoned on vehicles, aircraft and everything DHL-related.

Investing heavily in a TV, print, DM and outdoor combined assault - all paths led back to the regional ad campaign created by German ad agency Jung Von Matt/Spree, which ran from May to August, and played on the legacy of ancient Egypt to illustrate DHL's crowning position as a total logistics and express solutions provider.

According to Ogilvy & Mather Hong Kong-based account director Teresa Muk, (WPP offshoot Promotional Campaigns handles the Hong Kong business), "The rebranding campaign successfully positioned (DHL) as the market leader."

She added that a recent Hong Kong MTR push further uplifted the image of the express courier from 'Joe Blogs delivering packages', to uniformed, professional DHL personnel intent on overseeing the safe, timely passage of goods. While April saw rival UPS relaunching its logo, by September, DHL had added a new string to its bow with its 'Fast Forward' service, enabling cost effective transportation of heavyweight packages from Asia-Pacific.

Chalking up 15 per cent growth in regional export volumes for Q3, UPS' business proposition continues to focus on driving supply chain management.

Touting the seamlessly connected flow of goods, information and funds, UPS senior PR supervisor Gerald Lim said expanded financial service capabilities was key to its value proposition: "UPS holds an unrivalled position as the only company that can move all three flows of commerce - there is no link in the supply chain that we cannot manage."

Notching up nine per cent growth in Asian export volume as well as three per cent average daily package volume growth globally (Q1 2003 fiscal year), FedEx Express' (FedEx) performance is evident in robust above-the-line spend.

Selling on service continues to be the single-most powerful universal tool for express carriers. Finely-tuning this to target decision-makers - in this case female clients - FedEx launched a regional ad directive, 'Run Jenny run'. The BBDO-led ad centered on a fast-food restaurant worker going the extra mile to accomodate her clients - conveying FedEx's "company-service-profit" philosophy.

Below-the-line efforts included September's 'True heart ambassador' programme in Hong Kong, China and Taiwan with PR partner Ketchum Newscan.

"As TNT does not pursue a high-profile above-the-line marketing strategy, it is not logical for us to have an ad agency on retainer," says TNT regional marketing manager, Asia, Monique Chai.

Enlisting consultancy Grayling Asia (which had handled DHL's PR for three years previously) a B2B client focus spanning automotive, hi-tech, life sciences and petro-chemical clients ties in with corporate social responsibility initiatives.

TNT parent TPG's global partnership with the World Food Programme in June translated into an Asia-wide 'Walk the world' TNT fundraiser. This has been bolstered by strategic sponsorships, including official sponsorship of the Rugby World Cup and being express and logistics sponsor of the 22nd Southeast Asian Games.

Currently boasting 38 per cent regional marketshare, investment into Asia-Pacific includes US$100 million into an Express Cargo Terminal - DHL's Central Asian hub - at Hong Kong International Airport.

Source:
Campaign Asia
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