Article ID: | iaor20112201 |
Volume: | 41 |
Issue: | 1 |
Start Page Number: | 35 |
End Page Number: | 50 |
Publication Date: | Jan 2011 |
Journal: | Interfaces |
Authors: | Fischer Marc, Giehl Wolfgang, Freundt Tjark |
Keywords: | allocation: resources, distribution |
In this paper, we introduce the customer‐insight based approach that Deutsche Post DHL adopted to improve its global express delivery business. DHL has used the operations research based brand assessment tool in more than 20 large countries on four continents since 2004. The tool supports local brand managers in allocating marketing resources to activities that grow the global brand in their country market. Its application led to an estimated increase in brand value of USD 1.32 billion over five years. This corresponds to a return on investment of 38 percent and an internal rate of return of 24 percent. The tool's implementation also had a major impact on DHL's strategy and organization.