The making over of India post - Myth or Reality?


‡ Market leader of yesteryears India Post has run out of monopoly. ‡ Express industry identified the unmet needs of the customer. ‡ India Post did not make the first move towards getting organized. ‡ Finally evolving strategies to meet challenges of competition in the new world.

‡ A legacy of British Raj. ‡ Retail network of over 1.54 lakh post offices of which 90% serve rural areas. ‡ Over 6.03 lakh personnel. ‡ Revenues of over Rs. 5 crores /day. ‡ Collection in Savings bank/Collection schemes of nearly Rs.80 crores/day. ‡ Aggregate sum assured of over Rs.10,000 crores in life insurance. ‡ Money orders valued at over Rs.15 crores /day. ‡ Over 5.64lakh letterboxes throughout India.

Data Post. New products: ‡ Speed post. Telegraphic Money order Service. ‡ Indian Postal Orders. Hybrid Mail Service. . Corporate VSAT Money Order Service.Product portfolio Over 25 Products ranging from lowly post cards to international money transfers. ‡ ‡ ‡ ‡ ‡ ‡ International Money transfer through Western union. Business Post.

‡ Where as Products like Speed post where 140% positive over the cost. Indian postal orders where huge revenue busters with a loss of 93%. ‡ Also traditional products like foreign mail at 9% and insurance at 32% where at surplus. newspapers.Current Situation (As on 1995) ‡ Traditional Products like post cards. . ‡ The surplus generating product was less then 20% of the product portfolio in terms of numbers.

Looking Ahead Sector Physical mail Fax & Telephone Email Market Share 1995 20% 75% 5% Market Share 2005 15% 75% 10% .

SWOT ANALYSIS Belief & trust due to govt backing Wide Network Establish redressal machinery Talented Professional leadership Vast business experience Strong infrastructure Strength Opportunities Many untapped markets Inreasing acceptance of e-mail Opening up of hybrids Growing number of international transations .

SWOT ANALYSIS Lethargy due to secure employment Lack of ownership Absence of organisation-wide customer focus Weakness Threat E-mail traffic Penetration of internal into homes Aggressive private players .

Why relationships ‡ Traditionally organizations have focused on the 1st of the 3 Rs of Marketing recurit. ‡ That its cost exorbitantly to lose a customer. ‡ The loyal customer bring in more that their revenue streams by word-of-mouth. retain & regain. . But now they have realized: ‡ That it costs exorbitantly high to recurite new customers.

‡ A Customer is .capable . price per unit is not the determining factor.more than willing to pay a higher price for any product that offers Value-for-money. .Customer expectation and satisfaction ‡ Contrary to opinion.discerning .

‡ Number of users who have expressed dissatisfaction towards extremes is higher in India Post.India Post .reliable delivery & Courteous service .Customer Relationships ‡ Prompt .Most important factor for Customer satisfaction -Market study conducted by TSM for India Posts in South Tamil Nadu Customer Service with India Post ‡ Satisfaction levels is higher for private players vis-a vis India Post. .

‡ Responsiveness : Willingness of India Post personnel to help customers & to provide prompt service. ‡ Empathy : Caring & individualized attention that India Post should provide its customers. equipment.India Post & Service Quality dimensions ‡ Reliability : Ability of India Post to perform promised service dependably & accurately. ‡ Assurance : Knowledge & courtesy of India Post & its personnel to inspire trust & confidence. personnel & communication material. ‡ Tangibles : Appearance of physical facilities. .

‡ Segment customers & offer targetted offerings ‡ Eg: IMF in collaboration with Western union.India Post . ‡ Technology is being increasingly adopted & extended in a phased manner across the country. . customer profile & exigencies of societal obligations like offering subsidized service.Current Strategic Initiatives ‡ Realized limitations of its product portfolio. Data post etc.

Do you believe that government of India is whole heartedly trying to achieve Excellence in Service Quality ? .Questions ‡ Q1) A sleeping Giant (India Post) has woken up & is evolving strategies to meet the challenge of competition in the world .

technology & competition. b) Training their employees to serve the customers better. to be recognized as an efficient and excellent organisation exceeding the expectations of the customers . . parcel and related services in India and throughout the world . c) Realigning product portfolio considering the current requirement. ‡ Re-enforces the commitment of India Post ‡ T o provide high quality mail.Yes India Post has woken up to face the new challenges & cash in on the opportunities by taking certain initiatives a) Assessing their current situation in terms of customer satisfaction. employees and the society.

‡ Total recognition of the responsibilities as a part of the social. ‡ Total commitment to providing challenging and rewarding career for every employee. . which customers consider to be value for money. industrial and commercial life of the country. ‡ Total enthusiasm to be forward looking and innovative in all areas.‡ Total dedication to understanding and fulfilling customer's needs . ‡ Total devotion to providing efficient and reliable services .

Do you agree with this statement . Explain your answer with the support of Service Triangle Model .it would follow Interactive Marketing would also be empowered .Q2 ) If Internal Marketing is done successfully .especially with reference to the case India Post .

The Services Marketing Triangle Company (Management) Internal Marketing External Marketing ³enabling the promise´ ³setting the promise´ Employees Interactive Marketing Customers ³delivering the promise´ .

Orientation Programmes to train company personnel ‡ Customer Orientation Program Postal assistants ‡ Business Orientation Program Marketing executives ‡ Therefore enhance customer satisfaction & relationships. interactive marketing would be empowered. .Service Marketing Triangle ‡ If internal Marketing done successfully.

Q3 ) Which New products should be developed by India Post & which existing products should be dropped & why ? .

Parcel etc) ‡ Financial services (Banking. Greetings post. Money order. Retail post. Mutual funds) ‡ Premium services (Forex services In association with HDFC Bank. foreign mail & insurance account to only 20 % of the portfolio. Business post) .Product Portfolio ‡ Postcards are incurring loss along with others like postal orders. India Post currently offers a blend of services as under ‡ Speed Post ‡ Mail Products Traditional products (Letters. Postal life insurance. ‡ Surplus generating products such as Speed post. Inland letters.

‡ India Post should strike a balance between its urban & rural customers as penetration in rural areas is not matched by any private operator. therefore dropping of products /addition of new products should be decided based on customer demand & trend.Product Portfolio .Current Highlights ‡ India Post has segmented the services on basis of targetted customers. .

Nationalized banks.‡ Q4 ) Tangibles in most of the post offices are poor. Suggest important improvements to be made in Tangibles in post offices. . Railways etc. compared to other Central Government organizations like .

personnel & communication material.Tangibles ‡ Tangibility is what the customer Sees & Feels in terms of Physical facilities. equipment . .

‡ Trained personnel to serve the customers. ‡ Visibility of product portfolio offered should increase. . ‡ Customer friendly environment.Important improvements ‡ Create a good ambience with modern infrastructure.

Assurance & Empathy.Q5 ) While a beginning has been made in Tangible dimension of the Servqual. much needs to be done in Reliability . Responsiveness. Explain how this can be achieved in India Post ? .

‡ ‡ Employees to show sincere interest in solving problems. Responsiveness ‡ Employees to give prompt service ‡ ‡ Employees to be always willing to help Employees to be never busy to respond to requests .Reliability ‡ Employees to keep customers informed when service will be performed and keep promises. Employees to perform service right the first time.

. ‡ Employees to increase product knowledge to answer questions. ‡ Employees to understand specific needs of customers. India Post should adhere to the identified requirements to build favorable perception in case of Reliability Responsiveness.Assurance ‡ Employers by their behavior to install confidence ‡ Employees to be constantly courteous. Assurance & Empathy. Empathy ‡ Employees to give individual attention to every customer.

6 ) Customer Satisfaction can be the only bedrock on which edifice of a successful relationship rests and can be built upon. . Explain this statement with relation to India Post. cannot be copied and offer a strong Entry barrier for New Players . Relationships cannot be substituted.

‡ Organizations should always treat their customers as an integral part of exchange process & cannot succeed without focusing on the customers. ‡ Therefore concentration on Retaining the customer is of most importance to India post & if India Post is successful in implementing strategies India Post will be miles ahead of competition because of India Post s combination of . .Experience + Reach + Technology + Customer satisfaction. ‡ Building relationship is therefore critical since companies should exceed the expectations more than customer s desires & India Post cannot be an exception.

Q7) What India Post should do to promote their public image and also its various product lines ? .

Visually appealing offices. ‡ Create associations with the help of brand ambassadors.indiapost. . ‡ Empower employees & create customer friendly environment.‡ India post has made a beginning with Promotion ‡ Increase visibility ‡ Advertise in different mediums. ‡ Interactive & Informative website : ‡ Take on competition by highlighting benefits viz a viz competition.

‡ Q8 ) What are your detailed recommendations to convert India Post from a government monopoly to a successful business enterprise? .

‡ Bring a change in attitude within from being a Government organization to a Business organization . ‡ Tap the market potential by using & realigning the available resources. ‡ Highlight & promote Financial services more aggresively. ‡ Set goals & benchmarks to achieve profitability by proper segmentation & targeting products which suits customer s needs. ‡ Sensitive to changing customer trends & technology & act at a faster pace. .

Thank you .