1238402_the Farm-retail Price Spread in Competitive Food Industry
Building a competitive retail network in Poland
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Transcript of Building a competitive retail network in Poland
Building a competitive retail network in Poland
Rafał Brzoska
President of the Management Board
Amsterdam, 24th March 2009
Agenda
Polish postal marketIntroduction to the Integer.pl GroupKey success factors for the future growth
of InPostDevelopment of the partnership franchise
modelImproving service delivery and ensuring a
customer-centric approachCreating a unique position in the market:
building brand awareness
Polish postal market - 2008165 – number of registered players on the Polish Postal market (including CEP)
2,5% - market share of alternative postal operators in addressed mail
54% - market share of alternative operators in parcels segment
74% - market share of alternative postal operators in unaddressed mail
Source: InPost calculations based on Office of Electronic Communications (UKE Polish postal regulator) report on Polish postal market in 2007, May 2008
Postal retail outlets
8692 – number of retail outlets run by Polish Post (30% run by agents)
1543 – number of retail outlets run by other postal operators (72% runby agents)
Integer.pl Group - introduction
Distribution of unaddressed mail
market leader in distribution for supermarket chains
Postal services
largest independent postal operator
Financial services
Basic financial and insurance services offered
in 95 Point of Sales
Logistics services
logistics support to Group’s subsidiaries
Distribution of unaddressed mail in Ukraine
Operations start in January 2009 in 5 biggest cities (20 by end of
the year)
Automated parcel terminals
250 machines by end of 2009
InPost - postal services2008 - market share of 2,2% with 3 million letters per month onaverage
2009 - market share of 4,5% in December with 8 million lettersper month by end of the year
Standard, express and registered express letters, parcels as wellas manufacturing and installation of commercial mailboxes
Main focus on business customers (95% of income).
Infrastructure
1 sorting central hub in Piotrków Trybunalski automised andregional branches. 2 additional hubs to be opened in Northand South of Poland in 2009.
109 branches
800 Customer Service Points
Presence in 198 cities
2500 postmen
Retail network
Growth from 0,3 million letterper month in Q4 2006 to 4,4million letters in Q1 2009
Retail network doubled –increase from 430 points in Q42006 to 800 in Q1 2009
* - Forecast
Key succes factors for the Growth (1/2)
Utilisation of logistics infrastructure,management and experience in running thebusiness of 7000 people of Integer.pl(unaddressed mail)Flexible approach to our customersLower prices compared to the nationaloperator by 20-30%Ambition to have national coverage – currentlyalmost 200 cities in PolandFully owned logistics infrastructureInnovative ideas
Additional security of mail pieces –„special seal” attached to thecorrespondenceInPost’s envelopes weighing 50 grams
Key succes factors for the Growth (2/2)
Introduction of new products and services in linewith the strategy to introduce 5 new products peryearInnovative solutions based on technologyimprovements
On-line track and tracing since December 2007GPS monitoring of postmenReporting systemm.InPost – mobile version of the websiteAutomation of central sorting hub
Automated Parcel TerminalsHybrid MailE-services
Partnership franchise model (1/4)
InPost
CustomerService PointsBranches
Partnership franchise model (2/4) - Branches
100% branches run by third-party agents in Nov 2006
Financial restrictions for agents to make investments
InPost taking ownership in largest cities (currently 16)
Remaining are monitored by InPost (e.g. training, uniformstandards)
Forecast of mail volume allows sufficient training andrecruitment
No franchise fee. Agents are paid by:Number of delivered correspondenceNumber of outcoming mail from their region – incentivefor sales activities and key account management
Partnership franchise model (3/4) – Customer Service Points
100% Customer Service Points run by agents in Nov 2006
Agents running their own businesses and treated InPost’sservices as a second revenue stream
2008 – decision to open own Customer Service Points in mostattractive destinations
Uniform outlook and full range of servicesInPost is paying the rent, furnish it and organise necessaryequipmentAgent is organising clerk and earns money from theprovision of sales servicesIf agents fails, InPost is not loosing the localisation butreplace the agent – more stable financially and better forthe image
Partnership franchise model (4/4) – Customer Service Points
Two cooperation models for agents:Own premise or is renting the outlet marked by InPost –need to invest source for furnishment. Benefit of highercommissionOwn premise or is renting the outlet marked by InPostbut is not covering the cost of uniforming it to InPoststandards. Contract signed for 2 years
Each agent receives licensed software, training materials,visual materials, assist in leaflets distribution
Offered services include selling stamps, sending and receivingletters and parcels as well as offering financial services (billpayment, cash loans, mobile top-up, money transfers)
Improving service delivery and ensuring a customer-centric approach (1/3) - GPS
95% of volumes generated by business customersStrategy focused not only on lower costs but also onquality aspectCustomers get used to price and pay more attention toquality
Every postmen equipped in GPSContant monitoring of work and delivery routeAbility to check if postmen reach „test addresses”Complaint procedures for standard lettersFirst big advantage over national incumbentSimple but very effective
Improving service delivery and ensuring a customer-centric approach (2/3) – IT-Agent
Fast growth urged the need to havea complex solution to control thequalityIT-Agent – system to control theentire process within theorganisationIntroduction of barcodes and data-matrix codes
Cooperation with customers inarea of barcoding e.g.implementation to our systems,generating reports
Multiple scanning of thecorrespondencePostmen's bonuses are dependanton effectiveness and quality ratherthan on number of working hours
Improving service delivery and ensuring a customer-centric approach (3/3) – Automatisation of sorting hub
Next step was to automate the sorting processManual sorting generated up to 5% mistakes and 1-daydelayInstallation of two Pitney Bowes machines (VariSort andOlympus II) allowing to deliver up to 10 million lettersper month with marginal error range
Next big projects:Hybrid mailAutomated parcel terminals
Goals of undertaken actions are to increase quality of service and gain more competitive advantages
Building brand awareness (1/4)The launch of InPost on the market - strategy
Strategy of thelaunch
The market research
(TNS OBOP)
Informationmaterials
Anti-crisismaterials
Media trainingand internal
communicationMeeting with
opinion leadersWebsite
Teaser and educationalcampaign
Official launchof InPost brand(15 Nov 2006)
Regional pressconferences
Building brand awareness (2/4)
Public Relations activities – publications and articlesIntensive communication with clients and employeesPro-ecological activity EKOInPostEuro-mailboxes educational campaignCharitable activities – InPost actively cooperates withAnna Dymna’s “Mimo wszystko” Foundation and EwaBłaszczyk’s “Akogo?” FoundationContest for customersInvestments in the staffWebsite, gimmickriesMany awards
Building brand awareness (3/4)
1695 publications aboutInPost in 2008
Major coverage in Internetand Press
InPost’s name in the titlementioned 514 times in 2008
43 headlines per month onaverage
Rafał Brzoska broke the monopol The private post – the investment of the year
InPost insures
InPost’s postman as a cash machine
InPost – laureate of „Teraz Polska”
InPost introduces a new service
InPost introduced a new IT system
Building brand awareness (4/4)
Retail outlets
Contact details
Rafał BrzoskaPresident of the Management Board