India Post
India Post
India Post
MEMO OF TRANSMITTAL
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To:
Dear Sir,
Yours sincerely
ACKNOWLEDGEMENT
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Its a great pleasure for me to present this report on Marketing Strategy for India Post for
the partial fulfilment of MBA course at Indian Institute of Management, Sambalpur.
I would like to take this opportunity to thank the organizations management for allowing me
to undertake a project in an organization of national repute.
I owe a deep gratitude to Mr. Navdeep Yadav(Inspector) and Mr. M.K. Shrivas (Assistant
director) for his help and kind co-operation throughout the assigned project.
My special thanks to Mrs. Preeti Agarwal (Director of Postal Services) for her unmitigated
support, meticulous reviews, in depth inquiries and advice on the work.
I am also thankful to Mr. Katoth, Mr. Parikh , Mrs. Rajshree Gowande, Mr. Narendra,
Mr. Ravi Sharma and all employees of Department of Post for helping me towards
completion of this report with their time to time valuable feedback, assistance and advices.
Thanks are due to Mr. Amrut phalguni Mohanty, officer, PGP, IIM Sambalpur for his
valuable support and inspiration and deep sense of gratitude for all the Faculty members of
IIM sambalpur for providing immense learning during the our program, which helped me a
lot in completing this project.
I express my deep sense of gratitude to all the respondents who participated in the survey of
the study and spared their valuable time to provide the requested responses.
I sincerely hope that this report will help the organization and serve as guide to those using
this report.
CONTENTS
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INDIAN POST................................................................................................................... 5
OBJECTIVES...................................................................................................................... 7
METHODOLOGY............................................................................................................... 8
PRESENT SITUATION OF INDIA POST...........................................................................9
ORAGANIZATION STRUCTURE OF INDIA POST..........................................................10
MARKET PRESENCE AND COMPETITIOR ANALYSIS OF INDIA POST.......................11
ISSUES IN INDIA POST.................................................................................................. 15
RECOMMENDED MARKETING STRATEGY AND OTHER SUGGESTIONS....................16
BCG MATRIX............................................................................................................... 16
MARKETING STRATEGY.............................................................................................17
OTHER SUGGESTIONS............................................................................................... 17
MARKET POTENTIAL..................................................................................................... 19
Abstract...................................................................................................................... 19
Objectives................................................................................................................... 20
Introduction............................................................................................................... 20
Scope of the Research:............................................................................................20
Calculation of Market Potential..............................................................................21
Overall Research Process........................................................................................22
Data Analysis and Interpretation...........................................................................23
CUSTOMER BASE, INDORE...........................................................................................34
REFRENCES.................................................................................................................... 35
INDIAN POST
The department of post, trading as India post is a government operated
postal systems in India. Generally referred to within India as The post
office, it is the most widely distributed postal system in the world. The
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These are the few main services provided by India Post others may
include Print to post, Post Cards, Business parcel etc.
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OBJECTIVES
The Key objectives of this internship are:
2.
3.
4.
Topic
Familiarization with postal system, IT
modernization project, BD and Traditional
Products of Department of posts.
Study of Market potential of BD/Traditional
/PLI/RPLI products in both urban as well as
Rural areas.
Preparing of database of customers of BD
Product, traditional product, PL, RPLI
Direct Marketing with potential customers
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Duration
02 Days
30 Days
15 Days
13 Days
METHODOLOGY
Both qualitative and quantitative research approaches were adopted in this study to know
what are the issues that India post need to sort out as early as possible to regain it monopoly.
Qualitative research refers both to a class of research technique as well as methodology for
recording information. The strength of qualitative research is its ability to provide complex
textual descriptions of how people experience a given research issue. It provides information
about the human side of an issue- that is, the often contradictory behaviours, beliefs,
opinions, emotions and relationships/of individuals. Qualitative methods are also effective in
identifying intangible factors, such as social norms, socioeconomic status, gender, roles, and
ethnicity. When used along with quantitative methods, qualitative research can help us to
interpret and better understand the complex reality of given substitution and the implications
of quantitative data.
A quantitative research is a formal, objective, systematic process which helps in describing
variable, examining relationship among variables and determining cause effect interactions
between variables.
Convenience sampling technique has been used to various employees of India post,
customers of India post and competitor of India post. Convenience sampling is type of nonprobability sampling design which refers to the collection of information from members of
population who are conveniently available and is most often used during the exploratory
phase of research.
In depth interviews have also been conducted with sample participants to explore their
perspective on a particular idea or situation.
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But in local areas local courier companies are using BARTER system which can kill
the advantage of huge network of India post.
BARTER SYSTEM: Exchange of services and goods for other services.
Main competitor of India post in Indore are:
Bluedart
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Aramex
fedEx
DHL
Madhur couriers
Ecom Express
NO. OF OFFICES
FEDEX; 1%
INDIA POST; 45%
other; 8%
BLUE DART; 4%
DTDC; 8%
MARKET
PRESENCE COMPANIES:
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In Indore India post clearly dominates in terms of network only competitor which can
be compared is Madhur couriers others have scattered offices.
INDIA POST:
25000
Cash on Delivery:
Yes
Tracking:
Yes
Yes
International Shipping charges are Rs. 675 onwards per 500 gms.
Ecom Express:
1500
Cash on Delivery:
Yes
Tracking:
Yes
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No
Bluedart:
Serviceable pin
codes in India:
4,000
Shipping rates
(Domestic):
Charges start @ Rs 30
per 500 gms
Cash on Delivery:
Yes
Tracking:
Yes
International Courier
Facility:
No
DHL:
Shipping rates
(International):
Cash on Delivery:
Yes
Tracking:
Yes
Yes
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FedEx:
Shipping rates
(International):
Tracking:
Yes
Yes
Aramex:
2872
Shipping rates(Domestic):
Cash on Delivery:
Yes
Tracking:
Yes
Yes
Yes
Cash on Delivery:
Yes
Tracking:
Yes
Yes
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From this analysis we can see that India post have higher rates as compared to other private
players which is a major issue of concern.
Due to slow adaptation of technology and old staff norms, manpower costs
increased exponentially.
Postal services in India is acquiring a business character, lots of competitors are
there in market with deep pockets. India post have lost its monopoly so they have to
face competition from their rivals.
Challenge of the courier in the premium product and service sections of the market
have been limited by the government culture of slow response instead of quick and
smart business decisions.
They continue to own and operate a huge number of auxiliary logistic service even
though outsourcing them would be a cheaper option.
There are many post offices in rural as well as urban areas, which are defunct and
do not cater any customers at all there by increasing the fixed cost of India post.
Newly employed Rail mail sorting system is time consuming as well as utilizing
much more manpower as required.
For Pick up services no proper transportation mode is there, Number of vehicles
required are inappropriate.
For services like Cash on delivery (COD) postman needs to be skilled and educated
so as to handle customer well, but they lacks this attribute. We can say that mean is
not ready but the service is introduced.
Discounting Issue: No power to the staff to provide discounts who are directly
involved with bulk customers so communication time may lead to loss of customers.
No dedicated team for marketing postal services and customer acquisition which is
the need of hour.
Limit of Rs 40,000 is quite high for business parcel.
Feedback system is not properly designed it should be both ways from lower staff to
upper staff and upper to lower so as to have better administration.
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BCG MATRIX:
RELATIVE MARKET
SHARE
High
Low
High
Low
STARS
QUESTION MARK
e-commerce
COW
DOG
With the help of this matrix we can clearly state that India post is required to concentrate on
e-commerce as with investment in it can lead to high growth rate as well as bigger market
share.
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And to invest in ecommerce they need to utilize their cash cow i.e. speed post to the fullest
they need to have proper infrastructure so as to ensure the functioning of all the services
related to speed post.
MARKETING STRATEGY:
To survive in such competitive world India post is required to have Hybrid approach. They
have the widest network advantage they just need to have some upgrades according to the
type of customers they catering in a particular area for e.g. If in particular pin code amount of
bulk customers are more then set up bulk customers counter separately, similarly if speed
post traffic is high then increase the number of booking counter for speed post for that area.
Basically India post need not to excel in all of its services rather if they focus in what they
can do well area wise then it can do wonders for them.
Quality Across locations: There should be no inconsistency in services, All post offices
should be maintained well and customers should be treated well for e.g. if a customer from
rajmohalla want to go for bulk customers and rajmohalla pot office doesnt register bulk
customer so he will be required to go to GPO and while going to GPO if he finds any other
courier service provider then this can contribute to loss of potential customers of India post.
Creating Awareness: Awareness is must amongst India post customers as according to a
survey conducted by us we got to know that customers dont even know what other services
India post can provide other than speed post, parcel. So one simple solution is to put up
boards showcasing all the facilities provided by India post with their price and other relevant
information.
Competitive Analysis: India post need to find out who are their core competitors what is their
strategy, pricing and act accordingly.
OTHER SUGGESTIONS:
Need to carry out massive technology upgradation and calibration of tariff is required
which can be done with the help of price sensitivity analysis.
India post should remove the governmental control for its policies and pricing and
should become autonomous operationally and financially.
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The financial powers which were given to India post under the delegation of
financial power need to be revised and should be given more powers as currently they
are inadequate.
Determining postal tariffs needs to be distanced from the government and
autonomous commission needs to be created.
Mail motor services had quite high transporters cost so need is to outsource where
relative cost is high.
There are many one man and two man post offices which are not catering masses and
are close to each other, we can merge them onto one which will decrease financial
burden without diluting access to the are served.
Rs 40,000 limit should be removed for bulk customers.
Training and development sessions needs to be arranged for postman so that they
can handle high profile customers more efficiently.
Field workers are required under senior staff, like in Indore region under Mr. katoth
sir there should be team who will use his contacts and go out for field work.
Different-different forces are required for pickup and delivery purpose to make the
process fast and efficient and avoid dispatch and delivery time mismatch.
Within a particular limit discounting power should be given to staff who is directly
involved with bulk customers.
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MARKET POTENTIAL
Objectives:
1. To study the market potential of Courier services.
2. To find out the customer satisfaction level with their existing courier
service provider.
3. To find out the Market share of Companies Using Different courier
service provider.
Introduction:
In the research which was based on the study report on market potential
of courier business. The purpose of research here is to evaluate the
potential of the courier business in Indore region. What are the
customised needs and expectations of customer (retail and bulk) using
courier of existing courier service provider. What is customer review on
given services etc..? The target customers were mainly B2B and
B2C.The title of the present report itself explains the scope and area of
study. The major target is on courier industry in Indore city.
Gwaltoli ,Gangwal bus stand(Dhar road) ,Old Palasia and New Palasia,
South Tukoganj,Vijay Nagar,Geeta Bhawan,Rajwada,Dawa Bazaar,Kothari
Market.The time allocated for the research was 45 days and the primary
data was collected for the month April-May 2016.
Category
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No. of
Quantity
Price of One
Market
Potential
Buyers
Purchased
Potential (in
Rs)
Monthly (20%)
16400
12
35
6888000
Quarterly (52%)
42640
35
5969600
Half-Yearly (12%)
9840
35
688800
13120
35
459200
Yearly (16%)
82000
14005600
Market Potential for speed post and other service up to 1.40 crore approx.
in Indore city
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Research Methodology:
Type: Qualitative and Quantitative
Sample Unit: Branches business heads of Domestic and International
players, Employees engaged in courier service and Customers.
Sample Size: 50
Sampling Method: Simple Random Sampling
Company
No. of
Respondent
Blue DartDHL
15
DTDC
First
Flight
FedEx
India
Post
Other
12
Interpretation- From the above pie chart it is seen that maximum 30%
users use
Blue Dart-DHL Courier services while 20% users use India Post
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Company
Blue DartDHL
DTDC
First
Flight
FedEx
India
Post
Other
Time (in
hrs)
24-36
24-36
24-48
24-30
48-96
24-72
Average
Time (in
hrs)
30
30
36
27
72
48
Interpretation- From the above Pie chart it is seen that maximum Delivery
time taken by India Post for Simple Document Courier and least Delivery time
taken by Blue Dart-DHL.
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Monthly
Quarterly
10
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26
Half-Yearly
6
Yearly
8
Interpretation- From the above Pie Chart it is seen that half of the sample
size give 4 business opportunities to Courier Service Provider in a Year.
Note:Assumption: For every courier service provider there is a chance
of 4 business opportunities from retail/bulk customer in a year.
First
Flight
FedEx
India
Post
Other
No. of
Consignment
s for delivery
900-1200
400-600
700-800
500600
300-400
200-400
Average
Consignment
s delivered
every day
1050
500
750
350
300
550
Interpretation- From the above Pie chart it is seen that Maximum number
of consignments delivered by Blue Dart-DHL and India Post delivered
minimum number of consignments.
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NOTE:
1) Above data information was based on the information provided by
delivery boy and business heads of branch offices.
2) Number of consignments delivered each day from per branch of courier
players
2000-4000
4000-6000
6000-8000
No. of
Respondent
s
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800010000
3
10000Above
1
Interpretation- From the given Pie Chart it is seen that Maximum no. of
bulk customer might be generate business opportunities in range of 40006000 on monthly basis.
Companies
Total
Resolved in
%
Total
Comments
Blue Dart-DHL
1164
15
1.28
932
DTDC
2956
20
0.67
2482
First Flight
1472
17
1.15
2033
116
14
12.06
121
1812
22
1.21
6694
FedEx
India Post
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OVERALL RANKING:
Companies
Blue DartDHL
DTDC
FedEx
First Flight
India post
On-time
Delivery
Offers
Safety
Door-toDoor
Services
Packaging
Services
Tracking
Services
Flexible
Price
Grand Total
10
23
14
21
22
Features
NOTE: a) In each category rank given from 1 to 5 for each courier service
provider.
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b) 1 is allocated for best rank and 5 is for last rank among the top
player of courier Market
Interpretation- From the above table it is seen that Market leader of courier
Industry in Indore is Blue Dart-DHL in all modern features of courier services.
Due to this reason Customer give preference to private courier player as
compare to postal services.
PROBLEMS
Problems with
courier service
provider
YES
NO
TOTAL
No. of
Respondents
30
20
50
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Types of Problems
Problems
No. of
Respondent
s
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Delayed
Delivery
15
Area
Coverage
13
High Price
16
No Customer
Care
06
Prospects
No. of Respondents
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YES
NO
37
13
Interpretation- From the above Pie chart It is seen that 74% of customers
are still belive in improvement of Courier Services.
CONCLUSION
Though we have tried to incorporate all the learnings which we have got from our guiding
institute and suggested our recommendations on the basis of our understanding of current
situation of India Post. But this department is the oldest department of our country and have
many facets along the course of its evolution. Understanding such institute in given short
period of time limited us and hence the recommendation given are not a definite solution
rather it is for the purpose to highlight issues that are needed to be taken care of.
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REFRENCES
1.
2.
3.
4.
5.
6.
7.
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http://www.indiapost.gov.in/
Annual report 2015 of India post.
https://www.wikipedia.org/
http://www.yellowpages.co.in/
Feedbacks of surveys conducted by us.
Text Book: Philip Kotler
Indian consumer complaint forum.