Pos Malaysia Berhad is a post services company in Malaysia. The organisation was restructured in 1992 from being a governmental owned Malaysian Postal Services Department or Jabatan Perkhidmatan Pos Malaysia into a business corporation. Pos Malaysia provides postal and related services, transport logistics, printing and insertion, counter collection and payment agency services for a range of financial transactions, such as bill payments, remittance, insurance and unit trusts. The company holds an exclusive concession to provide mail services through its network of over 850 branches and mini post offices in Malaysia.

1. Strategic Thinking
in Brand Marketing

2. Content
• Executive Summary
• Introduction
• Current Strategic Challenges
• 3A Discipline Deficiency
• Current Value Discipline
• Critical Insights
• Recommended Overall Direction
• Future Value Discipline
• Strategy Statement
• Resource Excellence
• Continual Improvement
• Conclusion

3. Executive Summary
• Today’s fast changing market is forcing POS
Malaysia into a revolutionary transformation in
the following areas:
– to build POS Malaysia brand value “Effeiciency”
– to re-engineer
– to innovate
– to move into new area of opportunity in e-
commerce
• POS has plenty of room to reinvent and improve
itself by offering new services while continuing
to capitalise on its mass user base (28 million).
Brand Value
- EFFICIENCY
Re-engineer
Operation
Excellence
Innovate
Warehouse &
Parcel Service
New
Opportunity
e-Commerce

4. Executive Summary
• The transformation challenges include:
– Customer driven
– IT to focus
– Funding the transformation
– Labour force migration to new function
– Talent management
– Strategic collaboration with competitors
– Strategic collaboration with alliance

5. Executive Summary
• In order to achieve this enormously ambitious goals, POS
Malaysia need to improve in three major aspects:
– Right Structure – service oriented operational
excellence
– Right Culture of efficient, trust and integrity
– Right Team of excellence
• This presentation will show how to churn out strategies to
change a threatening situation into a winning formula
using Strategic Thinking process.

6. Introduction
• Pos Malaysia Berhad is the exclusive provider of mail
services in Malaysia. The history of Pos Malaysia
Berhad can be traced back to the early 1800s.
• POS Malaysia service is a vital part of the nation’s
logistics system — providing a delivery platform that is
reliable, secure and affordable.
• Employ more than 16,000 people, over 1,000
physical outlets nationwide comprising more than 700
Post Offices and more than 300 Pos Mini. On top of
that, we are represented by more than 100
Independent Postal Agent all over Malaysia reaching
more than 6 million addresses nationwide.
• Pos Malaysia also offers Drive-Thru Counters
Our services include :
– Sale of stamps
– Encashment of Postal Orders and Money Orders
– Payment of bill

7. Introduction
• The blend of its solid market strength and market
freedom enables Pos Malaysia Berhad to explore and
adapt to new business opportunities beyond the
'traditional postal services'.
• Pos Malaysia Berhad structured its entire operation
into three Strategic Business Units. Determine to be
more focused on its various customers and
marketplace, Pos Malaysia Berhad now consists of:
– PosMel
Managing an average of 4 million mail items every day, PosMel
is focused in providing day-to-day mailing services both general
public and retail customers
– PosLaju
Being the sole national courier provider, PosLaju aggressively
aims to be the preferred courier service among its foreign
competitors.
– PosNiaga
This unit is responsible in heightening the accessibility of the
national's postal services via its extensive network of over 700
outlets and Pos Malaysia's transaction portal to reach
Malaysians in every corner of the country.

8. Introduction
Apart from its primary postal business, POS also owns various
businesses through its subsidiaries:
i. PostMe – Online retail business centred on the concept of
under-one-roof online shopping experience.
ii. Digicert – Issues legally-certified digital certificates which
are primarily used in electronic commercial for security
purposes.
iii. AsiaXpress – Providing customised logistic and delivery
solutions. It includes services such as warehousing,
international shipping and automated consignment.
The group also owns various investment properties and land
which provide rental income for the group and potential
development opportunities.

9. Share Holder
• The group has expressed its intentions to innovate and improve POS’s business model via
collaboration with other DRB-HICOM companies, such as:
– Insurance services. POS is currently collaborating with Uni-Asia to provide motor
insurance and more
– Shared motor vehicles. The group has guided that it will be collaborating with DRB-
HICOM to establish a vehicle rental system. This will enable POS to reduce its fixed
cost from vehicle purchases.
– shared service with Bank Muamalat which is the Cheque Deposit Box Service through
POS’ offices. In June 2012, POS and Bank Muamalat had formed a joint venture (JV)
company to execute the Ar-Rahnu services based on a 80:20 (POS:Bank Muamalat)
proportion.
• POS also has a shared banking service collaboration with Maybank to conduct selected
Maybank services at more than 400 POS outlets.
Key companies within
the DRB-HICOM group
are Bank Muamalat
(70%), Uni-Asia (51%
stake) And various
automotive
manufacturing and
distribution
counterparts
2011
• DRB-Hicom Bhd snapped up a 32.2% majority stake
in Pos Malaysia after Khazanah Nasional Berhad
divested its stake for RM622.79mil (RM3.60/share)

10. Five Year Transformation Plan
Beginning 2011, POS had initiated a five-year strategic plan to
transform, innovate and improve its business model and
roadmap. The plan is divided into three waves as follow:
i. Wave 1 (2011-2012/2013): Focus on core business;
aligning and fixing current fundamentals and operations
in current business before the next leap
ii. Wave 2 (2012/2013-2016/2017): New business quantum
leap phase; expanding into digital platforms and various
channels to provide innovative solutions and services
beyond postal
iii. Wave 3 (beyond 2017): Build regional platforms;
extending reach and presence on a regional scale via
wider partnerships
By the end of the five-year plan, POS intends to be the one-
stop solutions provider with channels in both physical and
digital platforms.

11. Pos Malaysia Revenue Breakdown
62%
21%
14%
3%
Revenue Breakdown
Mail Courier Retail Others
Source: Pos Malaysia, DBS Vickers
• Pos Malaysia Bhd posted a higher pre-tax profit
of RM50.09 million for its fourth quarter ended
March 31, 2013, when compared to the
RM44.341 million registered in the same quarter
of last year.
The postal and courier
sector has a market size of
nearly RM3 billion in terms
of revenue in 2009. The
sector continues to be
labour intensive as volume
continues to grow as a
result of economic
expansion, rising population
and online shopping trend.
The sector in 2009
employed more than
34,000 people.
> 20,000 postmen and couriers

12. Situation Analysis – Core Driver
Despite expected lower y-o-y volume for the mail
segment due to its revised rates and increasing use
of e-mail the segment is forecasted to record
RM678.0 and RM690.5m sales for FY13 and FY14
respectively, due to continuous volume support
from parcels and business mail.

13. National Postal Strategy
Improve Productivity
NATIONAL
Competitiveness
Balanced
Development
CONSUMERS
Service
Satisfaction
EMPLOYEES
Professionalism
ENVIRONMENT
Less Carbon
Emission
NPS
(2010-2014)
• POS Malaysia has transformed its posts offices
in rural areas as community broadband centers

14. Current Strategic Challenges
Annual Performance
• RM547million lost in 2011
• New Chairman & CEO
appointed 2012
• Rely too much on mail
(62%)
Brand Value
• Efficiency vs Cost
• Business Relevancy
• Brand awareness
• Brand equity
Decline Postal Mail
• Projected – 26.4% Y14
• Digital usage
• Business Customers’
switching
Customers’ Demand
• Long wait
• Better service
• Products offer vs
Customers’ needs
Coverage
• 1000 outlets nationwide
• International collaboration
Front Liners Duty
• >167 service @ counter
• Salary 19% lower than
Government servant
• Attitude

15. 3A Discipline DeficiencyAcumen
Responsive to
market forces
Adaptability to
Customers
Losing battle
with
competitors
Traditional
oriented
Allocation
Strategic
Alliance
Automation
Customer
Intimacy
Managing for
Change
Action
Culture of
Excellence
Operations
Change
New Business
Area
Brand
Communication

16. Contextual Radar
Company Market
Competitors Customers
What
Where
WhoWhen
Uncertain
Price Fixed
Internet
Alternatives
Demanding
Fast Pace
International
Multi Channel
Offer
Better,
Faster,
Friendlier
Service
Why
How
No Focus
Lack of Innovation
Cannibalism
Low Morale
Worldwide
decline in mail
Willing to
Change
Traditional
Operations

17. PESTEL Analysis
Political, Economic, Social, Technological, Environmental & Legal
Political
• Government backed (NPS)
• Greater investment in certification
and security solutions
Economic
• Worldwide economic uncertainty
• Integrated global and production
networks and supply chain
• Increasing cost
• The postal, courier and logistic
sectors are converging
Social
• Higher consumption of postal and
courier services as a result of
growing wealth
• Brand Loyalty
Technological
• Automated Machine for fast speedy
processing
• Productivity
Environmental
• Carbon Footprint
• Social Responsibility Score
Legal
• Post Act
• Restriction for pricing
• Market liberalisation policy –
Domestic, Asean & International

18. Economic Factors
SERVICE HELPS TO CREATE THE DIFFERENCE

19. Business Driver Matrix
High
Low
HighLow Differentiation
Relevance
Business Mail PosLaju
Retail
Counter
Service
Logistics
Warehouse
Normal Mail
Outlet

20. SWOT Alignment
Strength
• large user populations
• dedicated workers
• more contact points than most
businesses, and even
government protected services
• Logistics know-how
• Address management
Weakness
• Stakeholder and client network
• Marketing and customer
support
• E-payment
• Brand and reputation
Opportunity
• New market creation
• Increasing demand in delivery
service for e-commerce
• Dominate with existing system
coverage
• Increase warehousing needs
• Optimize & Reorganize mail
collection & delivery process
• Improve PosLaju
• Focus marketing B2B
• Expand Direct Mail
Threats
• Irrelevant counter service
• Cannibalism (AsiaXpress)
• International Competitors
• Improve Counter Service
• Decrease waiting time
• Automation
• Build on Warehouse &
Logistics Service
• Collaboration & Strategic
Partnership
• Focus on Multi Channel
Service:
Online>Warehouse>Delivery
Internal
External

21. Courier Operators
• More than 100 courier operators in Malaysia
• Multi-national Players
– DHL, FedEx, UPS and TNT
• Key Domestic Players With Nationwide Network
– PosLaju/Pos Malaysia (Public Listed)
– Nationwide Express (Public Listed)
– GD Express (Public Listed)
– City-Link Express
– ABX Express
– Skynet Express

22. Courier Market Trend

23. Strategic Group Map
High
Low
HighLow Service
Technology
1M e-mail
MyEG
PosMel
PosNiaga PosLaju
FedEx
DHL UPS
TNT
Avanti
DPEX
AirAsia Courier ABX
OCS
Sure-Reach
City-Link
Kangaroo
Nationwide
Skynet
M’sia Express
SOS
GDex
TA-Q-BIN
Airpak
Mail / Online Courier

24. Customer Survey
47%
7%
6%
6%
14%
9%
3%
3% 2% 3%
Lowyat.NET Online Voters Poll %
Poslaju Skynet
GDex City-Link
DHL FedEx
Nationwide Express ABX
Air-pak Others

25. Critical Insights
Service
Reliability
The cost
of the
service
Location,
Staff
Attitude
and
Process
Time
Protection
to the
seller and
buyer
Make it More
EFFICIENT
Enhance
Customer
EXPERIENCE
Make
more
MONEY

26. Trade-Off Matrix
Eliminate
• Long Counter Wait
• Poor Counter Service
Increase
• B2B Services
• Automated Service
Decrease
• Physical Outlet
• Alternate Delivery
Create
• Franchisee / Representatives
• Part-Timers
• Multi Channel Services
• Online>Warehouse>Delivery

27. Recommended Overall Direction
 to build POS Malaysia brand value ―EFFICIENCY‖ as a
distinctive competitive edge
 to re-engineer its core business towards operational
excellence as value discipline; that is unmatched service for
postal mail and dampen revenue decline because of digital
format substitution and competitors’ services
 to improve PosLaju services
 to innovate and increase capacity in warehousing & parcel
service
 and to move into new area of opportunity in e-commerce
 to build on multi channel service
Online>Warehouse>Delivery

28. Transformation Challenges
• The transformation challenges include:
– the need to become much more customer driven
– IT to focus on supporting business transformation
– funding the transformation
– labour force migration to new function
– talent management to provide right skills to build
new, strong positions
– strategic collaboration with competitors - to reduce
running costs. eg, DHL can outsource to Pos Malaysia
for deep rural areas. So Pos Malaysia can deliver
together. Like an airplane co-shared concept on some
overseas route destinations
– strategic collaboration with alliance - to reduce running
costs. eg with cargo ship, airlines, airport, ports for
storage/warehousing

29. What to Improve
• POS Malaysia need to improve in three major aspects:
– Right Structure – service oriented operational excellence
– Right Culture of efficient, trust and integrity
– Right Team of excellence
Right
Structure
service oriented
operational excellence
Right
Culture
of
efficient, trus
t and
integrity
Right
Team
of excellence

30. Strategy Design
Purpose Value Context Who What How Advantage
Postal Service Efficient 1.Pick-up
2.Delivery
3.Post Office
B2B
PosMel
1.Mail
2.Direct Mail
3.Package
1.Promote
usage
2.Festive
season
3.Joint
Promo
1.Focus @
Major
Business
District
2.Operation
Expertise
3.Int.
Connection
4.Local
Coverage
Logistics +
Courier
Excellent 1.Friendly
2.Collaborati
on
B2B
1.PosLaju
2.PosLogistic
1.Warehouse
2.Logistics
3.Pemier
Courier
1.Priority
Service
2.Customize
Logistics
e-Commerce Efficient Collaboration B2C
PosNiaga
Multichannel
1. Online
2. Warehouse
3. Delivery
1.Choices
2.Delivery
per
demand

31. Future Value Discipline
• Prime business mover is
―EFFICIENCY‖ with focus customers
needs and trusted to deliver on time
• Key partners for e-Commerce
platform and for facilitating
international trade by
offering innovative
multi channel service
Efficiency
Customer
Focus
Innovative
Products &
Services

32. Strategy Statement
• Strategy is about intelligent allocation of limited resources
to achieve current (mission) and future (vision) purposes of
POS Malaysia, based on future value discipline.
• The mission of POS is to be efficient and remain relevant
to the customers by frequently raising the service levels
using advance technology (electronically such as email or
internet) or personal services (such as surface
mails, collection and delivery systems)
• The vision is to become the leading and trusted delivery
service provider of choice
• Thus strategy formula focuses on the What, How, Who
and Impact on accomplishing the mission and vision of
POS.

33. Strategy Statement
The Strategy Formula towards realizing the strategy statement
comprises of 4 components
1. What: POS Malaysia will target customers who are happy to pay a
premium for efficient, reliable and trusted delivery services that
cannot be substituted totally by electronic mail or the internet. The
customers whose requirements can be wholly met by using
electronic mails are not the main target
2. How: POS Malaysia will offer menu of standard services, both
locally and abroad, that can be easily selected by the customers
either directly or by referring to POS sales force. A pre-selected list
of clientele by industry and the general delivery services normally
needed by them shall the selling and customer acquisition tool for
the company’s sales force. In terms of technology, POS will
constantly invest in new technologies and systems to enable it to
track and improve its service levels continuously.

34. Strategy Statement
The Strategy Formula comprises of 4 components
3. Who: Both the sales force (customers facing) and back
office (support staff) must understand purposes and
implement the actions to meet the objectives of the
strategy statement.
4. Impact: The desired results are growing revenue from
both new and repeat customers. POS customers must
continuously enjoy high service levels and trust POS
Malaysia at all times in every aspects. The aim is also to
grow revenue by attracting potential customers away
from the usual courier companies such as DHL or FeDex.

35. Resource Excellence
The three types of resources POS Malaysia posses are:
1. Tangible: Physical assets (1000 branches and mini
post offices), and financial resources (higher
recorded profits)
2. Intangible: Culture, brand and reputation (in
existence for over 200 years)
3. Human: Knowledge, competencies and skills
(16,000 employees who can be re-trained to meet
current challenges and deliver future value)
In order to have a competitive advantage, POS has to
offer superior value based on differences in capabilities
and activities

36. Resource Excellence
1. Upgrade facilities in 1,000 branches and mini post offices
to make it more efficient and speedier than courier
service companies. It is difficult for courier companies to
replicate or increase their number of outlets to 1,000
2. Re-train 16,000 employees with new skills to provide
superior services (value) to customers such as on-call
collection and delivery. No other company in this industry
has 16,000 employees that can be easily deployed to
provide a sustainable superior services.
3. Introduce on the spot authentication services throughout
1,000 branches and mini post offices using advance
recognition-verification technology. This is difficult to copy
and cannot be readily substituted by normal courier
service provider which does not have the size in terms of
manpower and branches POS has.

37. Continual Improvement
1. Tangible: (a) Upgrade facilities and delivery systems, (b) allow
customers direct but controlled access to systems to do business
on-line with POS for faster services (c) make it unnecessary for
customers to be personally present (thus reducing long queue) at
POS branches except for a limited number of sensitive
transactions (d) introduce value added collection and delivery
services, and (e) allocate sufficient financial resources to for
improvements
2. Intangible: (a) Re-branding POS to change the public mindset that
it is no longer an old-fashion and limited postal service company
and (b) it is a proven reliable and trusted service provider
3. Human: (a) conduct regular training for staff to improve their
customer service delivery skills, (b) introduce KPIs and reward
systems to encourage superior service, (c) ..

38. Conclusion
• With correct strategy POS Malaysia would be
able to reinvent and improve itself by:
• Efficient mail services complemented by extensive
delivery network, strong international partnerships, door-
to-door deliveries with complete reliability and efficiency
• Integrated, customised logistics solutions that
cover a wide range of value-added services
including warehousing, fulfilment, distribution and
inventory management
• Provides one-stop, round-the-clock convenience e-
commerce for customers
• while continuing to capitalise on its mass
user base (28 million)