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2. Brainstorming What are the parcel products available in Indiapost and explain their features Trainer to consolidate the features

3. Parcel services offered by DoP Ordinary Parcel Registered parcel VP Parcel  Unregistered  Up to 4 KG  Unaccountable  Presented at the counter only  Unregistered  Up to 4 KG  Unaccountable  Presented at the counter only  Accountable  Can be Insured  Up to 20KG  Tracking Facility  Accountable  Can be Insured  Up to 20KG  Tracking Facility Sender collects the value of consignment from the addressee through post office Ins Parcel Business Parcel Express Parcel  Accountable  Tracking facility  BOs up to Rs.600/-  POs up to Rs.100000/-  In case of currency notes Rs.20000/-  Accountable  Tracking facility  BOs up to Rs.600/-  POs up to Rs.100000/-  In case of currency notes Rs.20000/-  2KG to 35KG  For corporate customers  Surface transmission  Credit facility  Discount facility  COD  2KG to 35KG  For corporate customers  Surface transmission  Credit facility  Discount facility  COD  0.5 KG to 20KG  For corporate customers 35KG  For BOs 10KG  Credit facility  Discount Facility  COD  0.5 KG to 20KG  For corporate customers 35KG  For BOs 10KG  Credit facility  Discount Facility  COD

4. Growth outlook for the Parcel industry in India Source:- crisil survey report

5. Growth outlook for the Parcel industry in India  Parcel industry in India is expected to grow at a CAGR of about 17% over the next three years to Rs 17,450 crores (USD 3.5 billion) in 2014-15 from Rs 10,870 crores (USD 2.2 billion) in 2011- 12.  The growth of the industry will be driven by the current major customer segments  auto components  banking & finance  Garments & pharmaceuticals  IT hardware and mobile phones.  New segments like organized retail, e-commerce and others are expected to emerge as major customer segments in the medium term. Source:- crisil survey report

6. Structure of the Parcel Industry in India  Fragmented with a large number of small and medium-sized players operating with local and regional networks.  Increasingly consolidating with the growth of a few large players who have nationwide reach.  Document shipments provide the largest volume while non-document shipments have higher share by value.  Domestic market contributes to a larger share compared to the international market. Source:- crisil survey report

7. Shipment profile – share of documents & non-document Source:- crisil survey report

8. Shipment profile – share of documents & non- document  Non document shipments account for a smaller share of the shipment profile by volume, but in value terms (revenue) it accounts for approximately 64% of the value. Source:- crisil survey report

9. Distribution of Domestic Shipments Source:- crisil survey report

10. Business parcel It is a contractual service Minimum weight 2Kg and maximum weight 35Kg. Surface transmission facility available Door to door delivery available.

11. Business parcel Advance deposit facility and credit facility available. Cash on delivery facility available upto Rs. 50000/ insurance of Cash on Delivery articles shall not be compulsory irrespective of amount of recovery from addressee; Corporate customers are given free pickup service

12. Business parcel. Insurance is optional No redirection facility Article can be booked in any office Articles will be delivered at the doorstep

13. Business parcel Weight SlabUpto 2 KgsEvery additional 1 Kg upto 5 Kgs. Every additional 1Kg above 5 Kgs. Distance LocalRs.45Rs.12Rs.14 Within StateRs.80Rs.20Rs.22 Neighbouring StateRs.100Rs.25Rs.28 Other StateRs.115Rs.30Rs.32 Between Metro and Sate Capital* Rs.105Rs.25Rs.28 National capital Region- Delhi/ Ghaziabad/ Noida/ Greater Noida/ Faridabad Rs.70Rs.15Rs.18 *provided it is not covered under within state or neighbouring state.

14. Express parcel This facility available for both retail and corporate customers. Minimum weight is 0.5 kg and maximum weight for retail 20kg and corporate 35kg. Free pickup facility is available Door delivery available irrespective of weight

15. Express parcel Redirection facility not available Can be returned to sender COD facility available and limit 5000/ for retail and 50000/ for corporate customer Insurance is not compulsory irrespective of value

16. Express parcel Article will be delivered in specified locations For corporate customer postage payment available through advance deposit credit facility and payment at the time of booking

17. Express parcel Weight SlabUpto 500 gramsEvery additional 500 grams upto 5 Kilograms Every additional 500 grams above 5 Kilograms Distance LocalRs.30Rs.8Rs.10 Within StateRs.50Rs.14Rs.16 Neighbouring StateRs.60Rs.18Rs.20 Other StateRs.80Rs.20Rs.22 Between Metro and Sate Capital* Rs.70Rs.18Rs.20 National capital Region- Delhi/ Ghaziabad/ Noida/ Greater Noida/ Faridabad Rs.40Rs.10Rs.12 *Provided it is not covered under, within state or neighbouring State.

18. Parcel Industry Small parcels and Freight will be shipped through Courier services, Express parcel services and Truck services Customer expects value added features – Track and Trace – Express service – Storage – Packaging and labelling

19. Parcel services (Below 35 Kg) - Classification Segment I – Large service providers with pan india operations. Ex: Gati, Safexpress, TCI XPS, ARC etc., Segment II – Regional travel & transport companies. Ex: KPN, VRL etc., Segment III – Smaller travel and transport companies, limited to few cities

20. Revenue of Domestic parcel service providers TierCompanyRevenue in Rs. Crore FY 2011 (L) FY 2011 (U) FY 2011 (L) FY 2011 (U) I Safexpress20302235 Gati40704580 TCI XPS20302235 Others (Blue Dart, AFL, DTDC etc.,)5010055115 II Patel Roadways15201725 ARC30403545 VRL Parcel Service15301735 Trackon Couriers10151117 ABT10201125 Tier II Others (KPN, Praveen, Various State road Transport Corporations 90185100215 III Central Parcel Service2525 Rathi Meena Travels2425 Prakash Parcel Services1313 Anant Parcel Service1313 Fast Parcel Services1313 On Wheels Parcel Service1313 Tamilnadu parcel service2525 Flyking3534 Tier III Others310415330450 India post53.5 72 Indian Railways150250165280 Total826.51289.59151460

21. Competition scenario – Market Share 2011-12

22. Volume

23. Pattern of parcels sent (EPP) In EPP Maximum number of customers sent parcels below 5 Kg. The business in parcels above 5 kg is to be tapped

24. Reason for Customer loyalty (EPP) More than 41% customers used EPP because of high reliability. To sustain reliability, parcels should be delivered within time norms, to be handled intact

25. E-Commerce- Opportunity 25 million online buyers in a year Expected to increase to over 100 million online buyers by 2020 Expected to grow at a 25 per cent compounded average growth rate This growth in the industry is to be captured Source: Business Today

26. Industry Expectation  The key characteristic of express delivery services are  door-to-door  one-stop  timeline-defined service with global reach  along with shipment tracking.  The industry players also offer services like  call centres/customer service numbers to resolve queries on bookings and shipments  web-based track and trace system.  The industry also provides customized services to suit the needs of its various customers.

27. Industry Expectation  These are premium services guaranteeing delivery by a certain stipulated time  This industry is more customer responsive.  The slabs are designed such that better rates are offered to more voluminous shipments.  Department of Post ready to fulfill all the Industry expectation through Express Parcel and Business Parcel and with dedicated employees.

28. What else is stopping you ?.

29. Activity Trainees to list out companies/organisations involved in ecommerce business in their area, who can be a prospective customers of Indiapost Trainees to list out prospective business or express parcel customers in their area who are engaged in professions like, weaving, handicraft items manufacturing, homeo/ayurvedic medicine preparations etc.,

30. Marketing tips Our staff should have thorough knowledge of all products and services. Bring awareness of our new products like business and express parcel among the customer. Propagate business in the market through other office staff and ME. Maximize both internal and external marketing.

31. Marketing tips Identify potential customers in the locality Maintain their profile Keep in touch with corporate customers Identify the products suitable to each customer Identify the current service provider Inform new customers about our products Educate them about the advantage we have with competitors When new services are introduced intimate them

32. Marketing tips Keep continuous liaison with the customers to ensure satisfactory after sales service Maintain good relationship with all customer Identify the need of customer to build confidence in the customer about service. Self advertisement is more effective in marketing Inform the customer about value added services

33. Marketing tips Be aware of limitations in services False assurances will have adverse effect on marketing Knowledge of products and services of competitors helps in identifying the need of customer. Get well acquainted with latest changes and developments in market

34. Marketing tips Maintain liaison with head of institutions and bulk mailers. Identify and tap the potential in the your area. Be proactive in interacting with customers

35. Key factors Provide after sales service Ensure that articles are not delayed or damaged Ensure delivery within prescribed norms Ensure customer delight to increase customer base

36. Group Activity Teams to prepare SWOT Analysis for following products and present 1.Express parcel 2.Business parcel 3.Speed post 4.Parcel 5.Insured post

37. Group Activity Based on SWOT, trainees to prepare a strategy to be adopted to bring in new bulk and retail customers to the product and prepare a list of potential customers based on their business profile for products like speed post, Express parcel, Business parcel etc.,

38. Thank You