Brand Management in Logistics – Even More Important in Times of Crisis

Safety is of utmost importance these days. Not only in our interactions with each other but also when choosing service providers. Customers rely on strong, familiar brands to maintain a sense of security even as resources become scarcer and the future remains uncertain. It’s a pity that brand management in the logistics sector often takes a backseat. The study ‘Brand Management in Logistics’ clearly shows that there is still room for improvement. Read the report by Clemens Meiß.

By Clemens Meiß

The key messages from the already ninth edition of the mood barometer* speak a clear language: Partner companies and customers see logistics as not future-proof and miss a partner on equal footing. Not even a third of the clients for transport and logistics services believe that the sector has what it takes for digital transformation. This paints a rather disastrous picture for the logistics industry in the survey on brand management, even though it is actually doing quite well in terms of its economic significance. Especially during the current Corona crisis, the logistics sector plays an important role for society as a whole.

The Mood of the Study in Numbers

However, the relevance of logistics providers is not reflected in the values surrounding brand image: Only 10 percent of logistics companies attest to a good image for their own industry. This is even one percentage point lower than in the previous year’s survey. There is an urgent need for action. Particularly regarding brand awareness, there is still much room for improvement. A full 23 percent of clients from industry and trade report that they do not know the logistics service provider working for them.

A significant discrepancy arises in the assessment of differentiation. While 81 percent of service providers believe they stand out from the competition, only a dismal 15 percent of clients confirm this. Interestingly, nearly three-quarters of companies state that a positive external representation of service providers positively influences their choice.

The ongoing issue of digitalization is playing an increasingly important role in brand building. Although 71 percent of logistics providers already reported engaging in online marketing, the need to act regarding their own brand is not perceived as particularly urgent. Only 59 percent of respondents want to realign their brand due to digitalization, which is even 10 percent less than in the previous year.

Employees as Brand Ambassadors

In the battle for young talent, brands must offer more than just fair salaries and attractive conditions, as many logistics providers have already recognized. For 77 percent of respondents, it is clear that employees are ambassadors for their brand, conveying its image externally. However, only 80 percent place value on internal communication, and a full 14 percent completely neglect it. Attitude and purpose are becoming increasingly important as part of the employer brand, with 65 percent already implementing CSR actions.

Despite the reported poor image values, there is reason for hope. The insight that improved image work benefits the industry is present: Nearly 100 percent of respondents see a direct connection between their market success and their image. And already 82 percent of companies report that they prioritize their marketing activities further and understand them as a strategic task.

Paths to a Better Image

To ensure that image building does not rely solely on ‘gut feeling’, it is necessary for logistics companies to follow specific recommendations for action:

1. Strategically plan advertising and brand work
2. Prioritize image as a differentiating feature
3. Advance the holistic digitalization of marketing
4. Strengthen the employer brand
5. Continuously align self-image and external image

Brand Work as a Collective Task

In early 2019, an initiative was born: ‘The Economic Makers – An Initiative of German Logistics Providers’**. Among the early participants were well-known companies such as Airbus, BMW, Edeka, Geberit, and Volkswagen. The initiators succeeded for the first time in connecting shippers and logistics providers for a common purpose, namely to improve the image of the logistics sector. In particular, the employer brand should be strengthened to address the prevailing shortage of young talent and skilled workers. To this end, ‘The Economic Makers’ launched a campaign in the summer of 2019 under the slogan ‘Logistics Heroes’, which vividly conveyed the diversity of this sector. With a total of 14 hero motifs, the different facets of career opportunities in logistics were highlighted, and very personal stories were told. After just six months, the campaign could be regarded as a great success, having reached around 45 million people via social media and attracted 40,000 to the campaign page. In total, this is a nice example of how joint brand work can succeed.

From Logistics Provider to Brand

Logistics providers understand their business and are highly regarded professionals, especially in this crisis time. However, the attractiveness for young people to work in this field has not changed significantly. Brand work remains a constant challenge for the entire sector. Because only when high competence is combined with clear benefit arguments and a touch of ‘sex appeal’ and coolness will companies become exciting for their target groups. And this applies not only to potential applicants but equally to customers. ‘Brand’ is an effective means to be prepared for this and future crises. It is to be hoped that more and more logistics providers will develop into true brand ambassadors.

Photo: © Get the Point

*Get the Point, the agency for positioning and brand building from Cologne, annually surveys the importance of brand and image for logistics with a non-representative mood barometer and compares self-image and external image of the industry. Link to the study: https://www.getthepoint.de/download/

** Get the Point is the inventor and co-founder of the initiative ‘The Economic Makers’ as well as the campaign ‘Logistics Heroes’.

The Author:

Clemens Meiß is the managing partner of the Cologne agency Get the Point, which specializes in positioning and brand building. In sparring with owners, managing directors, and brand managers, Get the Point develops visions, analyzes target groups, refines messages, and provides clear communication roadmaps. As the publisher of the study ‘Brand Management in Logistics’ and in lectures and at conferences, Clemens Meiß shares his over 25 years of experience from daily brand work.

www.getthepoint.de