MARKETING

Fact File• 1.55 lakh post offices-About 90% in rural areas

• To provide greater impetus to business related mail and parcel activities BD Directorate set up in 1996

• Reorganized into BD & Marketing Directorate in 2004-05 to provide a sharper focus on marketing.

“Twenty years ago, management was a dirty word for those involved in non-profit organizations (like government/ public organizations).

It meant business, and nonprofits prided themselves on being free of the taint of commercialism and above such sordid considerations as the bottom line.

Now most of them have learned that nonprofits need management even more than business does, precisely because they lack the discipline of the bottom line.”

Peter Drucker

WHAT IS M A R K E T I N G?

Marketing is a Social and Managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.

MARKETING IN PRACTICE• Marketing has become a key factor in the

excellent management of any business.• Today’s companies face increasingly stiff

competition, both locally & globally. • The companies that understand the

customers well, deliver the greatest value to their target customers and thereby delight them will succeed in the long run.

• Many people confused marketing with selling but marketing begins long before – in understanding the needs of the customers and satisfying their needs

Basics of marketing

Basics of marketing can be summarized in understanding and acting upon the following four simple questions?– What business are we in?– Who are our customers?– What are their needs?– What must we do to satisfy and

delight the customers competitively and profitably?

• Marketing is effectively aligning an organization to its markets

• Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably

• Marketing is the art of creating and satisfying customers better than the competitors at a profit

• Marketing is getting the right goods and services to the right people at the right places at the right time with the right communications and promotion

• Marketing in its true sense is simple: “MANAGING THE BUSINESS’

WHAT’S MARKETING ALL ABOUT?

What are our Business Areas?

• Communication

• Financial Services

• Transportation

• Remittances

• Retail

• Department of Posts is a Service industry.• Four characteristics of service are:

– Intangibility Inseparability– Variability Perishability.

• Marketing strategies for service firms.– Service - profit chain- links service firm profits

with employee and customer satisfaction.– Internal marketing-train and motivate the

employees to work as a team to provide customer satisfaction.

– Interactive marketing-quality of service depends on the quality of buyer –seller interaction.

What business are we in?

• Deteriorating financial position• Postal tariff fixed taking the social and

welfare issues into consideration.• Multiple services under three categories

– Communication, transportation and other services

• Changing market dimensions • Competition from the courier services and

service companies.• Growing demand for quality service

Challenges & customer needs

Challenges Before India Post• Competition

• Technology

• Customer Expectations

• Globalization

• Regulation

MARKETING VS SELLING

Marketing plays a critical role in running the company & building the business

It defines the way a company does business and it provides a total approach.

Marketing is not a fancy name for selling Marketing is neither selling nor promotion The difference in marketing & selling is more than

semantic Selling focuses on the needs of the seller and

marketing on the needs of the buyer. Selling is pre-occupied with the seller’s need to

convert his product into cash whereas in marketing one is concerned with the idea of satisfying the needs of the customer

In marketing the focus is on customer and ‘customer first’ is the essence of marketing

OrientationProduct Orientation Customer Orientation

FocusProduct Customer

ApproachCreating Demand Providing Solutions

StrategyProductCustomers’ price & promotion place Hearts & Minds

Measure of performanceProduct Volume CustomerDelightRevenue Market shareProfitReturns Financial

NEW THINKING ON MARKETING

What is Common in Our Business Areas?

• They are all Services

RECAP- Steps in Marketing• Prepare the data base of prospect customers.• Collection/ study of the details about the

Organization/ business• Pre-call appointment• Appearance• Brief Introduction about your organization• Listen to the prospect customer• Understand the mailing requirement• Formulate proposals and forward it• Follow it up by telephone calls/ visit • Close the deal

• Network expansion and consolidation to provide last mile mail communication service in urban, rural and hilly areas.

• Consistently designing, developing and implementing various business initiatives to cater to the mailing requirements of business community.

• Computerization and networking of postal operations for quick efficient and customer friendly service and better management of the back office operations.

• Upgrading the knowledge and skill of the human capital through continuous training

• Regular monitoring of the processes and performance indicators to achieve the desired customer service level for customer satisfaction

Transformation

MARKETING OF PREMIUM PRODUCTS

Products & Services• Mail services :

– Ordinary mail services, Registered or accountable mail

• Premium Services– Speed Post, Business Post, Bill Mail Post, Express Parcel Post,

Media Post, Logistics Post, Direct Post, Retail Post.

• Financial Services– Banking, Money remittance like Money order, i MO, MO Videsh

• Insurance Services– Postal Life insurance, Rural PLI

• E-enabled Services– e payment, e post

Speed Post-Leading brand in Express market• Wide Network Coverage-315 National Speed Post centers in

the country. International speed post to 97 countries.– 25 National SPCs & 9 State SPCs in Karnataka.

• One India one rate of Rs.25/- to any destination within the country for weight up to 50 grams.

• Tariff for local article –Rs.12/- for weight up to 50 gms. • International EMS at a very reasonable tariff.• Value additions and facilities.

– Free on call pick up, Credit facility, Volume discount on fulfillment of the conditions.

– Proof of delivery,Insurance,Track and Trace.

• Quality Service Initiatives.– PIN code in the address mandatory– Contact Phone number of the addressee/ sender– Soft copy of address data mandatory

PREMIUM SERVICES

Business Post

• Customized one stop solution for business mail.

• Prepayment of Postage is required. No credit facility.

• All pre-mailing activities from start to finish• Services offered at nominal charges:

– Collection of mail from premises– Preparation of mail like enveloping/ inserting– Gumming pasting and addressing– Franking, sorting and dispatch

BUSSINESS POST

• TOTAL MAIL SOLUTIONS FOR GOVT,SEMI-GOVT, PSU, AUTONOMOUS BODIES, NGOS,UNIVERSITIES, EDUCATIONAL INSTIT

• TAP LARGE SCALE PRINTERS, MASS-MAILERS, CORPORATE HOUSES

• TOTAL MAIL SOLUTIONS FROM SALE OF FORMS, FEES, ADMIT CARDS, Q PAPERS, ANS SHEETS, ADMISSION LETTERS.

Business Post• GROWTH RATE : 28.88%

• INTEGRATION WITH MAIL BUSINESS CENTRES

• FRANKING AND SORTING SOLUTIONS AT PRINTING STAGE

• PRINT TO POST WITH ADDITIONAL BUSINESS

Focus Area

Print to Post• It offers total solutions to the businesses covering

printing services, mail room services, distribution services and bill collection services. In the past, businesses were going to printers for their print requirements, mailing agents for pre-mailing requirements and post office for mailing requirements.

• With it businesses can walk to the Post office for a one-stop-shop service that combines printing, inserting, sealing, franking, mailing , distribution and collection of the bills

Focus Area

Print to Post• Once printed, the bills and other communication

will be sent by letter post or Speed Post, as per the requirements of the customer.

• The entire communication chain becomes easy and integrated, through Print to Post services.

• The facility provides state of the art high speed variable printing in multi-colour duplex printing systems.

Focus Area

Range of solutions offered under Print to Post

• Printing of bills, invoices, direct mailers, etc that involve variable printing process in a large scale.

• Pre-mailing processes including inserting, sealing, franking etc using mechanized systems.

• Distribution of the materials through Standard Post, Registered Post or Speed Post as per the requirement of the customers.

• Bill Mail and National Bill Service:• Communications in the nature of financial statements, bills,

monthly account bills or other items of similar nature posted by a service provider once in 90 days.

• Minimum quantity at a time 5000 articles for Bill Mail and 10000 articles for National Bill Mail.

• Bill Mail articles delivered within a circumscribed area like one city/ district.

• Competitive tariff of Rs.3/- for weight up to 50 gms and every additional 50 gms or part thereof Rs.2/-

• Should be fully sorted pin code wise and bundled delivery Post office-wise.

• National Bill Mail Service will be delivered any where in India.• For dispatch of NBMS packages to destination post offices,

postage for Speed post or EPP or Registered parcels depending upon the choice of customer.

• Express Parcel Post– Reliable, fast and guaranteed delivery of parcels – Weight limit up to 35 kgs.– Distance based competitive tariff– EPP-Business for regular contract customers.

• Value added services – Credit facility for business customers– Volume based discount– Free pick up from customers premises for business customers

– EPP-Deposit for occasional customers– Deposit account to be opened – Minimum deposit amount Rs.1000/-– Postage for parcels booked deducted from deposit amount– Further deposit amount taken when the balance reduces

– EPP -Cash for retail customers– Retail customers can avail on payment of postage amount.

From market research report 2011

• Advantages of EPP– High reliability– High speed & hassle free nature– Low cost– Door to door service– Greater reach

– Tracking facility • Disadvantages

• Non availability of PO nearby• Low speed• Procedure oriented• Not able to track

Logistics Post– Complete supply chain solution for transportation and

distribution of large volume of parcels– Tariff based on weight , volume and distance and docket

charge of Rs.100/-– Minimum chargeable weight 50 Kgs.– Consignments addressed to same consignor treated as one

consignment.– Insurance facility– Doorstep pick up/ delivery– Warehousing, order fulfillment – Track and Trace– Flexible service- FTL/ HTL

LOGISTICS POST• ESTABLISHING 2 LESS THAN TRUCK LOAD ROUTES

IN EVERY CIRCLE

• ESTABLISHING LOGISTICS POST CENTRES

• TRAINING

• FOCUS ON CONTRACT LOGISTICS

• WAREHOUSING

• CATALOGUE SHOPPING, BOOK SELLERS

e Post bridges the digital divide• Messages handwritten or printed in any language • Scanned and transmitted as email• Message printed at the destination, enveloped and delivered• Tariff Rs.10/- per A4 size page, per addressee.• Customized solution for corporate and business houses.• Message to multiple addresses from the sender’s premises• Some of the Business Uses of e post are:

– Sending periodic bills and statements to customers

– Internal communication with offices spread out geographically

– Collecting internal control statements

– Volume discount for sending same message to 50 or more addressee, Rs.6/- per A4 size page, per addressee.

Direct Post• Unaddressed mail for product promotion • Letters, cards, pamphlets, samples or any other

form of written communication can be sent.• Size not to exceed the length & width of A.3 size

paper.• Select location, Target group and focused delivery.• Minimum quantity 1000 pieces• Separate processing and delivery through staff with

local knowledge.• Tariff per article upto 20 grams

– Local – Rs.1.50 – Intercity- Rs.2.00 – Every additional 20 grams or part thereof Re.1

e-payment• E-payment is a “Many to One” service for collection of

payments of bills, subscription, premium etc.• Post Office collects the amount across the counter, issues

receipt to the customer and accounts for the transaction.

• Payments collected are consolidated electronically and MIS provided .

• Single payment of the collections made to biller/ service provider at one point.

• Service provider can download the collection details in the format required

• 816 e-enabled post offices in the State.

RETAIL POST• Sale of applications• Sale of recharge coupons, telecom cards• Collection of data• Address verification• Bill collection• Revenue stamps, judicial & non judicial• Sale of coins• Nregs, social security, pension, uid• Cheque collection• Sale of tickets, foreign exchange• Issue of micro credit• Collection of tax, insurance• Drop boxes/flat rate boxes

Customer Service Centre• Dedicated customer relations management

(CRM) services

• Toll Free Telephone Number for on call Postal information service.

• Multiple lines with 12 x 6 service.

• Mail pick up from your premise or postal service related queries or information

• For assistance Call the Toll Free Number.

Exercise- 5.2B

• Who could be the big customers and are not with Post? Why? How can we get them?

• What are the opportunities which we are losing?• How can we get business for high revenue

products and services. • Who are the angry customers? How can they get

inputs from them for improvement?• One group to present taking 20 minutes

Thank you