Connecting Europe: Customer needs along the value added chain
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1 Connecting Europe: Customer needs along the value added chain
2 2 Austria General information Population: BIP per Capita: GDP Growth rate 2,2 % (2005 est.) EUR
3 3 Austrian Post Key figures 2004 Press 5,5 CEP 76,3 Employees Turnover.597 Mio EBIT 86,6 Mio Outlets 92, Letter Mail 768,5 Direct Mail 344,2
4 4 Sorting centers 6 letter sorting centers 80 km 80 km 80 km Linz Vienna 80 km Salzburg 80 km Zirl/Kematen 80 km Graz Villach
5 5 Challenges for Public Postal Operators (PPO)
6 6 Development of mail volume in % Austria -0,7-2,9 Netherlands -2,0-4,0 Denmark Belgium -, -,86 Decreasing Mail Volume Increase in Bulk Mail -3,0-2,3 Sweden -,2-4, CAGR Source: IPC volume survey Nov. 2003, Österreichische Post AG
7 7 Challenges in the postal market 4 key areas Market Impact of technology (Volume decline) Higher customer requirements on postal services Globalization Regulatory Liberalization (2006, 2009) Increased competition (CEP, International mail, unaddressed Direct Mails,..etc) Operational Higher requirements on quality of service Social New job profiles, new job design, flexibility, etc. Environment
8 8 Actions of PPO to face challenges Market Product innovation New services (logistics and fulfillment) Extending international networks Regulatory Dealing with regulations Operational Cost reduction / Profitability Modernization Social Focus on health, safety and security issues Growing awareness of impact on environment
9 9 Challenges for the Austrian Post to meet customer s requirements Cost-cutting of consolidator Decreasing volume Changing postal markets insures the market pressure Liberalization and increased competition Goals of the Austrian Post Meet customer s needs Improve quality Delivery time Customer service Product innovation and differentiation to to meet customer s needs Direct Marketing, Consulting, value added service, etc.
10 0 Customer needs (NATIONAL)
11 Ranking customer needs in Austria, 2004 Importance on Letter Mail in % Arrival of mailing (loss) 99 Damages on mail, secure arrival Simple handling on posting No bureaucracy 85 Delivery on next day (E + ) 82 Receipt of posting Importance for the customer Source: Survey on 89 Postal customers
12 2 Customer needs of business clients To meet the customer needs and trends there is a need of: -Creating customer benefit through the value added chain -Consulting on Direct Marketing
13 3 Value added chain NATIONAL Services and products of the Austrian Post Consulting/ Consulting/ Conception Conception Target Target groups groups / / Addresses Addresses Print Print Lettershop Lettershop Delivery Delivery Return- Return- Direct Direct Marketing Marketing Centers Centers Adress. Adress. Shop Shop Geo Geo - - Marketing Marketing Letter. Letter. Shop Shop Info.Post select Info.Post select Info.Mail Info.Mail addressed addressed Info.Post Info.Post unaddressed unaddressed of of undeliverable undeliverable items items
14 4 Direct Marketing Consulting Direct Marketing Centers (DMC) Re-launched in 2000/200 as competence centers for direct marketing with additional services under the name Direct Marketing Center. 6 DMC cover Austria, mainly located in business areas. DMC DMC DMC DMC DMC DMC
15 5 Responsibility of Direct Marketing Centers Defending the market position by maintaining and extending the leadership in all quality criteria. Offering services along the value added chain of direct marketing to increase the customer loyalty and earn additional turnover. Building the market by lobbying and improved knowledge. Growing by winning new customers.
16 6 Customer needs (INTERNATIONAL)
17 7 Addressed Direct Mails per capita, 2003 Belgium The Netherlands Great Britain Austria Sweden Germany France Italy Hungary Spain Czech Republic Slovenia Slovakia Poland Russia Source: FEDMA
18 8 Advantages through International Direct Marketing. Faster entry to new markets 2. Lower costs vs. Local presence 3. Lower market entry- and market exit barriers
19 9 Our service for international markets The International Competence Center of the Austrian Post offers Full Service for international markets on demand. Conception, Conception, Consulting Consulting Print Print Lettershop Lettershop Delivery Delivery Address- Address- Return- Return- Individual complete tailor-made solutions:. Competent consulting in International Direct Marketing 2. Providing of addresses from all European countries 3. Preparation of the mailing according to respective regulations of the country of destination (addressing, franking, sorting and bundling) 4. Delivery to country of destination using national postal rates 5. Undeliverable items are returned free of charge
20 Yesterday Direct Mail to Eastern Europe 20 Today -Direct Entry -Postal Distribution
21 2 Value-added-chain for Eastern Europe Conception, Conception, Consulting Consulting Address Address Print Print Lettershop Lettershop Delivery Delivery Response- Response- Czech Republic Czech Republic Slovakia Slovakia 2 2 Slovenia Slovenia 2 Hungary Hungary Croatia Croatia Poland Poland Ukraine Ukraine 2 2 * Number of suppliers which cooperate with the Austrian Post.
22 22 Thank you for your attention! Contact: Österreichische Post AG International Mail Postgasse 8 00 Vienna AUSTRIA Tel: Fax: international@post.at
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