TCS Express: Future digital strategies and recommendations by Jahanzaib Niazi
Introduction
The importance of retail E-Commerce has increased and various firms consider digital marketing as an important department of their organization (Chaffey, 2015, p.18). The following discussion highlights the digital issues faced by TCS Express in its two business forms which are Logistic/Courier Service and online retail business (Yahvo.com). However, critical analysis is also been done with a recommendation with the help of different frameworks and models that will explain the impact of future digital strategies and operations on TCS Express at the International and local levels.
Company (Tranzum Courier Service Express)
According to TCS- Milestone (2020), TCS Express is a private limited company founded by Mr. Khalid Nawaz Awan; Ex Flight Engineer of National Airline of Pakistan PIA (Pakistan International Airline) in 1983. The headquarters of TCS Express is in Karachi and the company operates as a Logistic and Courier Company. Moreover, due to changes in consumer buying behavior TCS also start their E-Commerce business with the name TCS Connect, as time passes TCS Connect named change to Yahyo.com
(Azwadi et al. 2012, p. 1593)
Table 1: the development stage of E-Commerce
Singh and Hossaple 2000 study (cited in Azwadi et al. 2012, p. 1593 ) identifies the key 5 stages of E-Commerce development that starts from Brochureware, interaction, E-Commerce, C-Commerce and E Business. This E-Commerce adaptation and transformation stages are used to help organization to reach from evolution to revolution outcome. However, the revolution is depicted in table 1. Brochureware is usually considered as the introductory phase of business, time and experience play vital role in order to come up with innovation in the business similarly TCS is in the market since 1983 and they are continuously achieving the sequential stages of E-Commerce development after introducing Yahyo.com TCS entered into E-Business Revolution stage. When firm incorporate transaction via online payment systems that has secure encrypted devices and SSL (Secure Socket Layer) that means that firm had reached to E-Commerce Phase. The transformation is finalized when enterprises incorporate with Supply Chain Management, Customer Relationship Management and E-Commerce integration (Azwadi et al. 2012, pp. 1593-1594). According to Awan (2018), TCS introduce online retail business with the names Yayvo.com in 2012. Yahyo.com possesses parcel delivery service; receive online payment and cash on delivery.
TCS Express E-Strategic Issues
There are various e-strategic issues of TCS Express that were identified in the previous analysis.
Business issues
In Pakistan, TCS Express has become the synonym of courier service and when they started there E-Commerce online store in 2012 (Yahyo.com) they face many challenges as for consumer mindset TCS is always famous for their parcel delivery and they were generating more revenue from B2B such as Daraz and Khaddi are their customers. Therefore, after introducing E-store there start competing with their customers and for this business TCS need to build up their entire Cash management system (Awan, 2018). Furthermore, there are some trust issue in Pakistan while paying online due to various frauds that occurred in the market via online system and CEO of TCS cited another problem that is difficult to predict is the growth rate of E-Com market. Lastly, due to change in technological advancement it brings technological glitches; it was difficult for the firm to keep 24/7 online service and the data collection for tax was not recorded properly, as a result late filing of TCS tax and GSTN portal occurs (Hotwani, 2018)
Difficult to identify niche market
After introducing CPEC in Pakistan there are many activities that is linked with CPEC that includes trading export, Import, Construction, cross border trucking and warehousing/Logistics. However, TCS still is in observation mode without any specific project and it had also become hurdle for the firm to indentify the niche market in this huge responsibility (TCS Connect, 2017, pp.8-9)
Security risk issue in Pakistan
According to TCS Connect (2017, p.11) believes that there are operating across entire country (Pakistan) but due to geographical security issues there are some areas in Pakistan such as Baluchistan and Fata that has safety concern, there are limited access of Internet in such areas so therefore tracking goes offline. Moreover, there are chances of Kidnap and militant activity in such area that threatens TCS driver to deliver courier in such areas.
Order tracking and delivery issues
Based on 454 ratio TCS online time delivery got 3 stars out of 5 and delivery experience also got 3 stars out of 5. However, it was found from the figure 1 that most of customer has bad experience with TCS Express (TCS Parcel Monitor, 2019)
Figure 1: Customer response for TCS Express Delivery
Consumer oriented market
There has been significant boom in E-commerce sector in Pakistan, majority of companies are taking advantage of it. However, TCS’s CEO Manan (cited in Zaheer, 2017) that in today’s world consumer has access to company’s insight due to access of digital economic platform therefore any fake projection of product/service will ruin the image of company in the market.
Recommendations for TCS Express E-Strategic Issues
Due to technological advancement the operational procedure followed by different businesses are in fast pace and this is because of digital resources and digital strategy means use of digital resources in order achieve short term or long term goals (Gesenhues, 2019).
Figure 2: TCS Express Strategy hierarchy and relationship
The reason why the following model was selected because it explains the strategical level of hierarchy and identifies the coordination among TCS strategy however, it was found from the model that TCS only focused on logistic and courier service, so it is recommended that they should also focus more on Yahvo.com in order to built good image in the market because no matter who your target market is everyone is active on online platform therefore TCS need to choose online marketing rather than mainstream marketing (Henshell, 2015)
SWOT/TOWS Matrix
Whenever, big companies want to identify their business standings and indentify their key opportunities and strength they use TOWS Matrix, which also works as a paired tool to set up strategies and Swot also works as an auditing tools to identify internal and external environment of the company through this approach companies can intelligently take advantage of opportunities and tries to minimize weaknesses and threats (Aslan et al. 2012, pp.97-98).
According to Chaffey (2015, p. 196), the reason why TOWS Matrix is selected because it is recommended that this model does not only analyse the market but it foster to formulate strategies therefore as table 2 illustrated that after using this matrix TCS focus is to take advantage of CPEC and trend of Online Business. After the application of online business in Pakistan that would enhance their strength and E-Com business (Yahyo.com). This will open new opportunistic profitable doors for TCS however they should also focus on investing more on social platform. Most of the people are using social platform in Pakistan and TCS should also give discount coupons to online user that would encourage individual to share their pages on different platform this will also create a competitive edge in the market.
Enterprise Resource Planning
According to Chaffey (2015, p. 110), ERP is the integrated management of different business operations that helps firms focus more on purchasing process and keep customer information in an efficient manner. Currently, according to TCS Connect (2012, p.4), the firm uses OMS system that has various modules that include: Booking, scanning for security, data processing, De briefing, delivery, line" Haul and log book. There were various issues faced by TCS Yahyvo.com that can only be resolve via ERP software. Therefore, they need to install the Hybrid ERP software which is the combination of Cloud and On-premises ERP software. The software will remove most of the flows and it will facilitate in different business functions that include: to manage customer orders, optimize customer experience, links and support it with digital and world, If TCS apply Hybrid system it will be also be equipped with portfolio management, DMS, Mega MIS System, Shipment Tracer, KPI Monitoring, Wight bridge integration, shipping cost system (Avanade, 2020). The software will be easy for employees to handle and it will also reduce paper cost to print customer information because everything is available online and through this software, order processing would be smooth and there will be positive impact on CRM.
Digital Marketing
According to Financial Times, Digital marketing is a form of marketing that market through online or web based technologies such as Laptops, digital platforms and Mobile phone. There are different types of Digital marketing SEM, SEO, PPC, SMM etc. However, TCS need to adapt types of digital marketing and apply it on their delivery/courier service and on online buy sell platform
Types of Digital Marketing and its strategies
Search Engine Marketing: TCS needs to increase their traffic on website and they need to pay for the key phrase to Google For eg. Key phrase includes (Courier service, Delivery, online purchase and so on). This will improves the ranking and it will appear on top when audience search it online (Google, 2018)
Pay per Click: TCS need to pay for the Google ads, as most of the people search Google and it should be the aim of TCS to be in top 3 keyword search. They should purchase the word (courier service) or (online purchase) in Pakistan. These key words are usually expensive but target audience can be optimize through this (Bhashyam et al. 2014)
Social Media Marketing: TCS need to hire Social media managers; the key job description of the SMM is to advertising through Facebook, Snap Chat, Instagram, Twitter, and WhatsApp. TCS also needs to create discount voucher or discount packages for their Yahyo.com and also for delivery and courier services.
Mobile Adverting: According to Criteo (2018) It was found that there mobile application hang a lot and there are too much bugs that irritate viewers, TCS need to invest heavily on Apps because people nowadays buy and sell through Apps and it should be updated and ERP system should be linked with it that will count the remaining stock in hand.
Affiliate Marketing: TCS need to endorse celebrities for both Yahyo and Delivery service
TV/Radio Advertising: There are cluster of information in the marketing that’s why TCS need to create a song and link it with their Contact number and commercialize via Radio and TV.
According to Chaffey (2015, p.12), the transaction that use to conduct via tablets and Mobile phones are considered as Mobile commerce nowadays, most of the companies create Apps for mobile phone in order to engage with audience and to create sales because it was identified from the research that 80% of mobile Apps time increased rather than browsers.
Social Media
Social media marketing has rapid increased and it also consider as an important part of advertising in order to communicate with audience on company website and social platform such as Facebook, twitter (Chaffey, 2015, p. 418). Different small business ventures across the globe focus on this Social media marketing as it is cheap and got most reach furthermore, according to the research conducted by Zenith’s data, 13% of global ads spend on Social media advertising (Gesenhues, 2019). According to Schultz et al. (2012, p. 78), in today’s world social media strategies are also linked with the marketing strategy and around 99% of business managers believes that Social media strategy is directly proportional to the progress of the business. TCS also consider social media strategies therefore they also come up with the social media policy for their stakeholders (TCS ECOM, 2017, p.36). TCS Facebook page is not as much updated as their competitor’s pages, they need to come up with discount voucher pictures shares and try to get more leads/likes and also take help of YouTube and Instagram likewise Daraz.pk; TCS Yahyo.com should also share images and videos of their product portfolio on social platform to get more business. According to Chaffey (2015, p. 420), POST frame work is useful for the application of Social media strategy
Figure 3: POST framework on TCS Express
The reason why POST framework is used for recommendation because this will help TCS to build their social media tactics, manage to keep track of their social media strategy development, customer channel adaptation and the approach commercial potential can easily be identified. Similarly, TCS also need to apply the same strategy for their entire product portfolio for Yahvo.com in order to inform and engage with audience more through social media platforms.
Content Matrix
The content matrix is vital for the company that prioritize and ensure to the company that which content is important (Chaffey, 2015, p.332). However, the reason why Content matrix is used because through Content matrix it become easy for TCS-Yahyo.com to identify which content to focus on.
Figure 4: Content Matrix TCS online Yahyo.com
CRM
Customer relationship Management is a technique or technology through which interaction and relationship with actual/potential customers are maintained, it also build loyalty and productivity (Chaffey, 2015, p. 389). TCS need to engage with customer by giving them different discount packages in so that they should be loyal to the company because it is found that loyal customer not only gives profit but there contribution is 50% more than one time customer. The new structure of TCS is consumer oriented that is divided in to four different segments corporate, consumer, E-Com and International however TCS now consider customer as their first priority (TCS Corporate Profile, p.24)
Figure 5: Pareto Principle
(Kudobuzz, 2019)
The reason why Pareto Principle is linked with the TCS recommendation because If TCS focus on repeated customers both for Yahyo.com and for delivery service so according to Pareto Principle the revenue generation would be almost 16 times.
According to Agarwal et al. 2001 study (cited in Chaffey, 2015, p. 398) RACE framework improves the commercial value of the firm that they expand from digital marketing. The reason why RACE model is selected to identify how much effort company is putting into their prospect and what are the responses they receive back from the customers.
Figure 6: RACE Framework
The model shows how online marketing strategies help E-CRM to build profitability and loyalty. By implementing the Hybrid ERP system it will help firm to keep customer record and respond with customers on various occasion to build trust worth relationship. It will also be useful for the firm to send direct messages (mobile message, WhatsApp) instead of mass customize message in order to communicate personally with audience therefore there must be separate Social media department that should be responsible to communicate to audience. Company should never delete their negative comments rather they need to respond on the negative review, as a result dissatisfied customer might become loyal and regular customer.
Performance Management
Organization that focuses on effective Performance management can compete strongly in this market; it aligned resources, employees and ERP systems to achieve their strategic objective (Carpi, 2017). Moreover, according to Chaffey (2015, p.623), There are four key aspects of performance management that includes Goal setting, performance management, performance diagnose and corrective action however TCS E Com (2017, p. 23) breakdown performance management in 3 common steps. The reason why Performance evaluation chart is selected because it is recommended for TCS to keep track and record of their operations and it should be done through Balance scorecard so that feedback and outcome should help companies operation.
Table 4: TCS Performance Management Evaluation chart
Conclusion
To conclude, if TCS focus on the strategies that are explained and then evaluate it through KPI’s and Balance scorecard so they will also become the market leader in retail online business in Pakistan just like Logistic and courier service. However, they can also expand their product portfolio through e-operation. Moreover, TCS need to link Hybrid ERP software with their OMS system which will keep their parcel tracking across the globe and it will be efficient and effective for their logistics and courier service.
References
Aslan, I, Cmar, O & Kumpikaite, V 2012, ‘Creating Strategies from TOWS Matrix for Strategic Sustainable Development of KIPAS Group’, Journal of Business Economics and Management, vol. 13, no.1, p. 95-110
Awan, Q 2018, ‘TCS aiming at 90pc share in e-commerce deliveries’, The Nation, 26 February, viewed 15 August 2020, https://nation.com.pk/26-Feb-2018/tcs-aiming-at-90pc-share-in-e-commerce-deliveries
Azwadi, A, Normah, BO, Norzaidi, MD & Intan, SM 2012, ‘Adoption and Performance of Click and Mortar Retailers: Malaysia Evidence’, Journal of Commerce and Social Sciences, vol. 6, no.8, p. 1591-1608, https://www.researchgate.net/publication/288198333_Adoption_and_performance_of_click_and_mortar_retailers_Malaysia_evidence
Avanade, 2020. Field Worker of The Future Virtual Event. [online] Avanade.com. Available at: <https://www.avanade.com/en-au/solutions/business-applications?utm_campaign=frn-ao-um&utm_source=google&utm_medium=sem-aus&utm_content=web-business-applications&utm_term=benefits%20of%20erp&_bt=396430815581&_bk=benefits%20of%20erp&_bm=e&_bn=g&_bg=84069654955> [Accessed 20 August 2020].
Bhashyam et al. (2014) ‘Five ways to get more from digital advertising’. McKinsey Insights. [Online] Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/five-ways-to-get-more-from-digital-advertising [Accessed: 20 August, 2020].
Carpi, R, Douglas, J & Gascon, F 2017, Performance management: Why keeping score is so important, and so hard, McKinsey & Company, 4 October viewed 20 August 2020, https://www.mckinsey.com/business-functions/operations/our-insights/performance-management-why-keeping-score-is-so-important-and-so-hard#
Chaffey, D. (2015) Digital Business & E-Commerce Management. 6th edn. United Kingdom: Pearson.
Criteo (2018) Mobile Commerce Growth in 2017. Available at: https://www.criteo.com/insights/mobile-commerce-q4-2017/ [Accessed: 16 August, 2020].
Express, T., 2020. About Us. [online] TCS Sentiments Express. Available at: <https://sentimentsexpress.com/pages/about-us> [Accessed 23 August 2020].
Financial Times, ‘Definition of digital marketing’, Financial Times Lexicon, viewed 19 August 2020, https://web.archive.org/web/20171129124232/https://lexicon.ft.com/Term?term=digital-marketing
Gesenhues, A., 2019. Social Media Ad Spend To Surpass Print For First Time. [online] Marketing Land. Available at: <https://marketingland.com/social-media-ad-spend-to-surpass-print-for-first-time-268998> [Accessed 18 August 2020].
Google (2018) Search engine optimization (SEO) Starter Guide. Available at: https://support.google.com/webmasters/answer/7451184?hl=en [Accessed: 19th August, 2018].
Henshell, R 2015, ‘Why your Business Need to Focus on Online Marketing’, Business 2 Community, 8 June, viewed 19 August 2020, https://www.business2community.com/online-marketing/why-your-business-need-to-focus-on-online-marketing-01241831#:~:text=It%20might%20go%20against%20the,a%20trusted%20source%20or%20provider.
Hotwani, P 2018, ‘TCS: E-commerce companies facing technical issues at GSTN Portal’, SAG, 8 December, viewed 23 July 2020, https://blog.saginfotech.com/tcs-e-commerce-companies-facing-technical-issues-gstn-portal
Kudobuzz 2019, ‘Who Brings 80% of the Total Revenue of most Businesses? The Real Value of your Loyal Customers’, Kudobuzz, 3 September, viewed 19 August 2020, https://blog.kudobuzz.com/who-brings-80-of-the-total-revenue-of-most-businesses-the-real-value-of-your-loyal-customers/
Schultz, RJ, Schwepker, CH & Good, DJ 2012, ‘An Exploratory Study of Social Media In Business to Business Selling: Salesperson Characteristics, Activities and Performance, Journal of Marketing Management, vol. 22, no.2, p. 76-89, viewed 20 August 2020, https://www.mmaglobal.org/publications/MMJ/MMJ-Issues/2012-Fall/MMJ-2012-Fall-Vol22-Issue2-Schultz-Schwepker-Good-pp76-89.pdf
Tcsexpress.com. 2020. TCS-Milestones. [online] Available at: <https://www.tcsexpress.com/MainCategory/Detail/1116> [Accessed 15 August 2020].
TCS Parcel Monitor, 2019. What Customers Are Thinking?. [online] Available at: <https://www.parcelmonitor.com/track-tcs/> [Accessed 16 August 2020].
TCS Connect, 2017, TCS Connect Summer Autumn Issue 2017. [online] Available at: <https://www.tcsexpress.com/CMSIMG/Publications//20181106123637_1.pdf> [Accessed 16 August 2020].
TCS Connect, 2012, TCS Info Tech Enable Quantum Gains, TCS Connect, vol.11, no. 3, pp. 1-26, viewed 16 August 2020, https://www.tcsexpress.com/CMSIMG/Publications//20181106123637_1.pdf
TCS E COM, 2017, TCS E-COM Employee Handbook 2017. [online] Available at: https://www.tcs-e.com/wp-content/uploads/2017/02/Employee-Handbook.pdf [Accessed 19 August 2020].
TCS Corporate Profile, 2017, TCS Corporate Profile, TCS, [online] Available at: <https://www.tcs-e.com/wp-content/uploads/2017/02/TCS-Corporate-Profile.pdf> [Accessed 19 August 2020].
Zaheer, F, 2020. TCS braces for impact as Pakistan moves online’. The Express Tribune, [online] Available at: <https://tribune.com.pk/story/1594628/1-tcs-braces-impact-pakistan-moves-online> [Accessed 16 August 2020].