PRICE

 Companies do not have single price but there are

various factors.

 Depends upon various factors such as geographical

demand and costs, market—segment requirements,
purchase timing, order levels, delivery frequency,
guaranties, service contracts.

 DHL implemented the concept of the price adaptations.

 PRICING STRATEGIES
There are four strategies:-
1. Geographical pricing
2. Price discount and
allowances
3. Promotional Pricing
4. Differentiated pricing
 Geographical Pricing
 DHL had priced its product according to different
customers in different locations.
 There are four strategies which DHL had implemented:-
1. what the market could bear
2. price charged by competition
3. DHL initial entry pricing in other countries
4. DHL’s then current pricing around the world
 Price Discount and Allowances
 DHL provides discounts and allowance for early
payments, volume purchases, and off-season buying.
 New pricing structures such as monthly handling fee,
frequency discount, and loaded half-kilo.
 Negotiation pricing according to the customers and their
needs leads to flexibility price.
 Promotional Pricing
 The pricing strategy is easily copied by competitors and
they loose their effectiveness easily.
 There are various promotions held by them such as:-
1. If you courier two envelopes the third envelope is
free.
2. If the courier weight is 50 kgs you get 10 kgs free on
that particular courier.
 Differentiated Pricing
 DHL’S pricing differed according to customers, location,
products, packaging and so on.
 DHL have two kind of product services:-
1. Worldwide document express.
2. Worldwide parcel express.
 Pricing also differs according to weight, origin and
destination.
 PROMOTION
 DHL spent roughly 4% of worldwide sales on advertising.
 In 1990, DHL launched a new advertising campaign in
US with slogan “Faster to more of the world”.
 In 2010, DHL had a brand campaign regarding
renewable energy.
 DHL delivers free taxi rides during formula 1.
 DHL also had hoardings, posters etc in different
countries.
 DHL’S advertising campaign differed in different
countries.
 In Europe it was we’ll move the world while in
Afghanistan it was we’ll still find you.