Friday, 26 December 2014

No more Boxing Days for City Link Parcels

The parcels business is a tough market to sell in. Earlier this December Yodel was suffering from overload of orders creating a backlog for Christmas delivering parcels

Boxing Day is a holiday traditionally celebrated in the UK the day following Christmas Day, when servants and tradespeople would receive gifts, known as a "Christmas box", from their bosses or employers.  The tradition is mentioned in Samuel Pepys' diary entry for 19 December 1663.

 The ‘box’ received by those who work for and on behalf  of City link  the express delivery parcels service ,was the shock of an “ empty box” for  Boxing Day of 2014

Parcel delivery company City Link, which employs 2,727 people, has gone into administration.

Founded in 1969, City Link said had annual revenues of approximately £300m, a fleet of 1,700 vehicles and delivered 60 million items across the UK and worldwide each year.

Hunter Kelly, of Ernst and Young, said: "City Link Limited has incurred substantial losses over several years.

"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

"The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company."

City Link has been loss-making for many years, suffering from poor systems and intense competition from rivals buoyed by the explosion in online shopping.

A rival was quoted:

"This shows the immense pressure couriers are placed under further outlining the need for retailers to have alternative delivery solutions available at all times should one of their providers fail."

A widely accepted definition of marketing is

“The management process responsible for identifying,

anticipating and satisfying customer requirements profitably.”

This definition describes it as more of a company philosophy than simply a departmental activity.

So to be effective in marketing management you not only need to understand marketing concepts, you also need to understand business as a whole and to be an effective implementer.  In practise the formula is:-


Successful Marketing Management


Marketing Knowledge


Financial Understanding


Executive Skills


Decision Making




Some key marketing decisions and the most important decision influences are summarised in these Marketing Models .  However theory is simpler than practice as City Link  found over the last few years.
Related Links:

Posts on this blog on Marketing

No comments:

Post a Comment