PIA SPEEDEXPerformance Presentation

1. Introduction2. Up To Date Sales

Performance3. Market Profile4. HR Issues5. Strong & Weak Area6. Head Office Support

Required

PIA Speedex Delivers With Speed, Reliability, and Affordability

PIA's flagship courier service, Speedex, delivers documents and parcels of any size, to your doorstep. With a vast domestic network, cutting-edge technology, and the highest standards of customer service, PIA Speedex is Pakistan's courier company of choice.Capitalizing on PIA's cutting-edge information technology infrastructure, PIA Speedex pioneered the online tracking and tracing of shipments in Pakistan, enabling customers to track the status of their parcels at each transit point, until delivery. A range of delivery options also catapulted PIA Speedex to the position of a credible and reliable industry leader, giving customers flexibility and choice at highly affordable rates.

INTRODUECTION

PIA Speedex - Services• PIA Speedex offers a range of flexible delivery options to suit your budget and your

needs• Same Day Speed• Perfect for businesses, the Same Day Speed service delivers mission-critical documents

or parcels on the same day that you ship them. Delivery times depend on when you book your shipment and the availability of flights.

• Overnight Speed• The Overnight Speed service works while you sleep at night. Your parcels and

documents are delivered to their destination the next day, depending upon when you book your shipment and the availability of flights. Businesses use the Overnight Speed service for the delivery of official documents that are transported at night and arrive at their destinations the next morning, just in time for the start of the day's work.

• Second Day Speed• The Second Day Speed service delivers your shipment to its destination within a 2 day

period. This cost-effective service is ideal for heavy packages and for deliveries where time is not of the essence.

• Specials at Rs. 90 Per Service• Time Definite Delivery: This is a great service for customers who would like a

shipment to arrive at its destination at a specific time. Give us a time and we'll get your consignment delivered - on the dot.

• Holiday Service: PIA Speedex delivers, 365 days a year. Don't worry if it's a holiday as our Holiday Service ensures that your shipments are delivered around the year to all destinations across Pakistan. When no one else can deliver, we do.

• Fragile Handling: Sensitive items need to be handled with care. PIA Speedex offers a special service for fragile goods and you can rest assured that your shipment will be delivered to its destination, safe and sound, without any damages.

• Corporate Deals• Corporate customers with high volume courier needs can benefit greatly from

the discounts offered by PIA Speedex. If you'd like to sign up for our special corporate deals, please contact PIA Speedex Sales, for more information on benefits and rates.

• One-Off Deals• PIA Speedex offers special rates for one-time movements of bulk quantities or

heavy items. Please contact PIA Speedex Sales for more information about our special one-off deals.

• Insurance• PIA Speedex shipments can be insured in accordance

with the following terms and conditions: • Fragile Shipments: 1.090675 of the declared value• Non-Fragile Shipments: 0.2831 of the declared value• Electric Items Shipments: 1.38205 of the declared value

Up to date Sales Performance

January

-11

Febru

ary-11

Marc

h-11

April-11

May

-11

June-11

July-

11

August-

11

September-1

1

October-1

1

November-1

1

December-1

10

2000000

4000000

6000000

8000000

10000000

12000000

MonthCashCreditTotal Sales

January 2012 To Till Date

January-12 February-12 March-12 April-12 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

CashCreditTotal Sales

Year Total Market Volume (PKR in Billion) Growth Rate

2003 2.39

2004 2.60 8.3%

2005 2.81 6.8%

2006 3.00 6.4%

2007 3.19 6.1%

2008 3.39 6.4%

2009 3.63 7.1%

Till 2012 4.44 7.0% (Estimated)

COURIER MARKET GROWTH (Domestic)

ACTION PLAN

• It is necessary to plan or attend events that offer some time with prospective clients. It can either be a corporate party hosted by someone else or even you. You can plan a party and invite a section of business community that needs and uses courier services on daily basis and introduce your business and the services you offer in the best possible way. This will be the launching pad for your courier business as people will come to know about what you are and what services you offer.

• It is necessary to be creative with your marketing and come up with something new that impresses the prospective clients. Do not rely on the old and used methods of marketing and advertising and people already know them and are bored of them. It is only something new and innovative that will make them notice you and seek your services.

• It is important to have your professionally written and presented brochures distributed among clients. They can be distributed among business people as well as common people who need courier services. It is also important that you have a good web resource where clients can obtain all your information online and even book their deliveries for further ease and convenience. It is imperative that you always have the information pack ready to be given to prospective client as you don’t know from where you might get good business deal.

• It is necessary to advertise your business in the right places. Being a courier service that is mainly utilized by business organizations and common people, you can advertise in both local newspaper and television and even business newspapers and magazines to draw attention. Advertising your business consistently in the right places is necessary to run a successful business and to get clients to notice you.

• Courier Industry• Courier industry is characterized by high entry barriers. It needs huge

investment in infrastructure and technology and there is intense competition in the industry. The market for courier industry can be divided into individual, corporate and small and medium enterprises. On the basis of type of delivery, it can also be divided into overnight delivery and same day delivery services.

Players planning to enter courier industry need to analyze their own strengths and weaknesses and analyze the external environment for various threats and opportunities posed by it. They should formulate marketing strategy based on this analysis. They should design effective marketing mix by offering superior services, pricing competitively, setting up extensive distribution network and promoting their services widely using various media.

They should also take special care about people training, compensation, providing tangibility and enhancing their business processes. Courier companies are using information technology to enhance the quality of their customer service and obtain competitive edge. There are only a few global courier companies like Fed Ex, DHL, UPS and TNT and there is intense competition among them with each one trying to establish its superiority. In Pakistan, presently, DHL, TCS and Leopard are the major players contributing to 70% of industry's revenues.

HR ISSUES

• LOW SALARY • HIGH EMPLOYEE TURNOVER• SUNDAY SHIFT ALLOWANCE• Need Sales/Recovery person according to

previous team• Over all HR structure

Market profile

Corporate, 0.60%

Swift, 0.70%TNT, 2.30%

BlueEx, 4.50%

SpeedEx, 8.50%

OCS, 10.30%

Others, 1.50%

Leopard, 12.70%

TCS, 58.80%

Plotted on FY 2008 figures Total Market Volume PKR 3.386 Billion

Market Share Pie - Domestic

1st

4th

3rd

2nd

Oct 27, 2006 Speedex Business Plan 2006 - 2012 19

SWOT Analysis

Opportunities• Growing Industry• Increasing Customer Expectations• Innovative Product lines• Vacuum of Quality Players• Disintegration of TCS (Market Leader)• Increased sophistication• Availability of Cost Curtailing Tech

Opportunities• Growing Industry• Increasing Customer Expectations• Innovative Product lines• Vacuum of Quality Players• Disintegration of TCS (Market Leader)• Increased sophistication• Availability of Cost Curtailing Tech

Strengths • Objective/result driven Team Work• Proven Service Standards • Aggressive Corporate Selling• PIA Flight frequencies• Flexibility of Service Timings• Virtual unlimited Capacity• Effective Customer Services• WEB based tracking system

Strengths • Objective/result driven Team Work• Proven Service Standards • Aggressive Corporate Selling• PIA Flight frequencies• Flexibility of Service Timings• Virtual unlimited Capacity• Effective Customer Services• WEB based tracking system

Weaknesses Untrained Human Resource Limited retail presence Brand Non-recognition Image of a un-dynamic govt. entity No media presence Over-reliance on external factors

Weaknesses Untrained Human Resource Limited retail presence Brand Non-recognition Image of a un-dynamic govt. entity No media presence Over-reliance on external factors

Threats Technology Deployment by Competition Shipment security Cost Reduction wave and Price War Maintenance of Service Standards New entrants & Bucket-shops Effective road /rail transport thereby lesser reliance on by-air

Threats Technology Deployment by Competition Shipment security Cost Reduction wave and Price War Maintenance of Service Standards New entrants & Bucket-shops Effective road /rail transport thereby lesser reliance on by-air

HEAD OFFICE SUPPORT REQUIRED

• Define SOP• Define credit policy• Claim process/Monthly or yearly claim• Rates structure for heavy clients• Promotions and Incentives • Man Power Requirement • IT Hardware• Generator• Telephone Exchange• Vehicles

PIA-Speedex

Thank You