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Graham Davis Presentation

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  • Heard all about Royal Mail’s strategic position and you will no doubt recognise the tough market conditions we all face as mail volumes decline. While all that is true my focus is on driving growth through a world class sales approach.
  • Fulfilment – fuelled by growth in eCommerce and Online Shopping (example of Xmas trading period); boom in internet as sales channel; repositioning of fulfilment product range; building real fulfilment expertise in sales force 2. Media – yes targeting top 3k advertisers; but real growth opportunity in bringing SMEs into direct mail; providing relevant media sales propositions to encourage them to test direct mail as a means of acquiring, retaining and developing customers
  • Do we want to say anything about sales development of data revenues (channel potential)?
  • 1. Mailshots on line can be seen by mailing houses as our competing proposition to theirs; two approaches – 1) leave it out; 2) leave it in however response should emphasise this tool will help stimulate new users and with success use of mail will lead to growth for all in the future. 2. Given budget cuts this year, need to sense-check campaigns which remain in plan. Important we mention transactional if this is continuing as mailing houses feel we aren’t doing enough in this space given this represents 64% of mail

Transcript

  • 1.
    • Graham Davis
    • Director of Sales & Channels
  • 2.
    • Growth is out there and we are focusing upon two main areas
    • Growing our share of the growing goods fulfilment market
    • Increasing the role of direct mail for SMEs in particular
  • 3.
    • Mail market trends
    • Mail volumes are declining as customers switch to other media in both transactional and direct mail
    • Of the top 3000 UK Advertisers nearly 2000 don’t use DM.
    • SME advertising market is £6bn…but only 13% of SME advertising spend is on direct mail
    • We aim to grow share by 1% - £60m over plan
      • Grow Large Advertisers spend by £24m in 2010-12.
      • Grow SMEs by £60m (1% increase in market share)
  • 4.
    • Deployment of campaigns under three themes including transpromotional for transactional mail
        • Get customers
        • Keep customers
        • Grow customers
    • Show how mail works with other media
    • Continue to make mail easy to access and use, eg Mailshots Online
    • Incentives for new/lapsed users through pricing levers
        • First Time User
        • Sale 3
    • Media upskilling programme for RM sales force to support media sales growth
    Our sales priorities in media for 2011/12
  • 5. Our offer to the Partnership
    • Our primary route to market is via our direct sales force
    • We think you can help us reach into these organisations and help us to develop them and create new mail
    • We will extend our sales media upskilling programme to 100 SMP partners in return for future growth
    • We would also welcome input to how could you help reduce the overall cost/improve the overall experience of direct mail to support growth
      • You already have access to our pricing lever for new users of the mail medium (First Time User Incentive)
      • We will be bringing new pricing levers when we can in this year (eg RM Sale 3)
  • 6.
    • Together we can create Better Mail