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Market expansion through market penetration via haulage division : A study of Century Total Logistic Bhd

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Market expansion through market penetration
via haulage division : A study of Century Total Logistic Bhd
Presented By:
Salasiah Binti Bahrin
2008278234
BBA (Hons) Marketing Part 6

Contents

 Background

of company.
 Haulage operation
 Problem Statement
 Objectives of Study
 Issue
 Literature Review
 Research Methodolgy
 How CTL market their haulage services?
 Recommendation and conclusion.

Company Profile

The Group's principal activity is providing
logistics solutions.
 Committed to continue and expand their
efforts to further involve in domestic and
overseas operations.
 Offers the unique value added solution that
optimizes supply chain
 employs more than 600 employees


Corporate profile

Corporate identity

Board of Directors

Business services

Oil & Gas Logistics
 Supply Chain Management
 International Freight Forwarding
 Transport Management & Distribution
 Procurement & Assembly Services
 Warehouse Management Services
 Halal Logistics Services
 Integrated Logistics Management


Import Operation

Port of Discharge

Customer
Premise

MT Container
Depot

Customer
Premise

Port of Loading

Export Operation

MT Container
Depot

Distribution Matter

Delays of delivery of goods and containers
 Inefficiency of Depot and Port operation
 Breakdown of two or more trucks
 Unpredictable road condition


Continue

Poor services (Lack of Monitoring haulage operation.



Lack of staffs skill



Inefficiency in monitoring cost



Inefficiency of monitoring claims



Slow computering system



Lack of reputation

Objective



The objectives of Century are to perform efficient
and responsible business activities to enhance the
interest and quality of life of our stakeholders.



To establish how strategy such as market expansion
through penetration will expand to the new market.



To establish the strategic promotion as preferred
alternative of diversification towards growth
strategies.

Competitive pressure.

 To

many logistic company in the market
provide the haulage services

Rising fuel cost

 Increase

the cost of operation and increase
price offering to the customer

Government Regulation

 Tariff
 Liberalization

of Haulage industry

Definition Market



Market Definition.
Market is the “place” where price is
determined.
In other words, A market is the collection
of buyers and sellers that, through their
actual, or potential interactions,
determine the price of a product or set of
product.

Market expansion



Market Penetration is the business focuses on
selling existing products in existing markets
to increase market share. This can be
achieved by introducing loyalty schemes to
increase purchasing by existing customers.

Market penetration

 Market

penetration occurs when a company
enters/penetrates a market with current
products. The best way to achieve this is by
gaining competitors' customers (part of their
market share). Other ways include attracting
non-users of your product or convincing
current clients to use more of your
product/service (by advertising etc).

Research methodology

Findings

How CTL do market penetration for haulage
division?

Expand haulage business through
opening a new branch
 Melaka
 Kuantan,

Pahang

additional prime mover and side loader

 sustain

the overcapacity that facing by CTL

Halal logistics provider for Halal Transportation

 There

is no mixing of Halal goods with non-Halal
goods in case of bulk shipments.
 There should be no mixing of Halal goods with
both severe and medium najs in one container or
common transportation storage.
 There is no mixing of Halal goods with non-Halal
goods in one pallet and/or load carrier.
 There is a physical segregation of Halal cargo
from non-Halal cargo through tertiary packaging
(such as shroud, shrink wrap) or containerisation.

Integrated Logistic services

Focusing 3 division only which is
 Forwarding
 Haulage
 warehouse

Opening Yard Operation

storage

container
Parking lorry
Staging
lading

Cross border of CTL
Thailand
India

china

Generate Revenue

Recommendation



Quality of containers delivered (time base)
and customer satisfaction.
 Monitoring cost efficiently
 Managing Claim efficiently
 Increase the reputation of CTL haulage
 Use the efficient security and computer
system

Conclusion

Nowadays there are too much competitors
for the logistic industries. CTL should ensure
their services that they offer to the customer
can satisfy the customer. Besides that, they
should currently renew and introduce a new
haulage services, change the strategy
implementation and improve services from
time to time to ensure customer loyal to the
services.

Prepared by Salasiah Binti Bahrin
15 April 2010
Century Logistics Holdings Berhad (424341-A)
P. O. Box 93
42008 Port Klang
Selangor Darul Ehsan
Tel: (603) 3375 5888 Fax: (603) 3375 5969
E-Mail: [email protected]
Web Site: www.century.com.my

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