Building a competitive retail network in Poland


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Building a competitive retail network in Poland - Prezentacja InPost z konferencji European Postal Services w 2010 roku.

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Building a competitive retail network in Poland

  1. 1. Building a competitive retail network in Poland Rafał Brzoska President of the Management Board Amsterdam, 24th March 2009
  2. 2. Agenda Polish postal market Introduction to the Group Key success factors for the future growth of InPost Development of the partnership franchise model Improving service delivery and ensuring a customer-centric approach Creating a unique position in the market: building brand awareness
  3. 3. Polish postal market - 2008 165 – 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 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% run by agents) Source: InPost calculations based on Office of Electronic Communications (UKE Polish postal regulator) report on Polish postal market in 2007, May 2008
  4. 4. Group - introduction Distribution of Postal services unaddressed mail market leader in distribution largest independent for supermarket chains postal operator Distribution of unaddressed Financial services Logistics services Automated mail in Ukraine parcel terminals Operations start in January 2009 Basic financial and logistics support to 250 machines by in 5 biggest cities (20 by end of insurance services offered Group’s subsidiaries end of 2009 the year) in 95 Point of Sales
  5. 5. InPost - postal services 2008 - market share of 2,2% with 3 million letters per month on average 2009 - market share of 4,5% in December with 8 million letters per month by end of the year Standard, express and registered express letters, parcels as well as manufacturing and installation of commercial mailboxes Main focus on business customers (95% of income). Infrastructure 1 sorting central hub in Piotrków Trybunalski automised and regional branches. 2 additional hubs to be opened in North and South of Poland in 2009. 109 branches 800 Customer Service Points Presence in 198 cities 2500 postmen
  6. 6. Retail network Growth from 0,3 million letter per month in Q4 2006 to 4,4 million letters in Q1 2009 Retail network doubled – increase from 430 points in Q4 2006 to 800 in Q1 2009 * - Forecast
  7. 7. Key succes factors for the Growth (1/2) Utilisation of logistics infrastructure, management and experience in running the business of 7000 people of (unaddressed mail) Flexible approach to our customers Lower prices compared to the national operator by 20-30% Ambition to have national coverage – currently almost 200 cities in Poland Fully owned logistics infrastructure Innovative ideas Additional security of mail pieces – „special seal” attached to the correspondence InPost’s envelopes weighing 50 grams
  8. 8. Key succes factors for the Growth (2/2) Introduction of new products and services in line with the strategy to introduce 5 new products per year Innovative solutions based on technology improvements On-line track and tracing since December 2007 GPS monitoring of postmen Reporting system m.InPost – mobile version of the website Automation of central sorting hub Automated Parcel Terminals Hybrid Mail E-services
  9. 9. Partnership franchise model (1/4) InPost Customer Branches Service Points
  10. 10. 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, uniform standards) Forecast of mail volume allows sufficient training and recruitment No franchise fee. Agents are paid by: Number of delivered correspondence Number of outcoming mail from their region – incentive for sales activities and key account management
  11. 11. 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’s services as a second revenue stream 2008 – decision to open own Customer Service Points in most attractive destinations Uniform outlook and full range of services InPost is paying the rent, furnish it and organise necessary equipment Agent is organising clerk and earns money from the provision of sales services If agents fails, InPost is not loosing the localisation but replace the agent – more stable financially and better for the image
  12. 12. 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 higher commission Own premise or is renting the outlet marked by InPost but is not covering the cost of uniforming it to InPost standards. 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 receiving letters and parcels as well as offering financial services (bill payment, cash loans, mobile top-up, money transfers)
  13. 13. Improving service delivery and ensuring a customer- centric approach (1/3) - GPS 95% of volumes generated by business customers Strategy focused not only on lower costs but also on quality aspect Customers get used to price and pay more attention to quality Every postmen equipped in GPS Contant monitoring of work and delivery route Ability to check if postmen reach „test addresses” Complaint procedures for standard letters First big advantage over national incumbent Simple but very effective
  14. 14. Improving service delivery and ensuring a customer- centric approach (2/3) – IT-Agent Fast growth urged the need to have a complex solution to control the quality IT-Agent – system to control the entire process within the organisation Introduction of barcodes and data- matrix codes Cooperation with customers in area of barcoding e.g. implementation to our systems, generating reports Multiple scanning of the correspondence Postmen's bonuses are dependant on effectiveness and quality rather than on number of working hours
  15. 15. Improving service delivery and ensuring a customer- centric approach (3/3) – Automatisation of sorting hub Next step was to automate the sorting process Manual sorting generated up to 5% mistakes and 1-day delay Installation of two Pitney Bowes machines (VariSort and Olympus II) allowing to deliver up to 10 million letters per month with marginal error range Next big projects: Hybrid mail Automated parcel terminals Goals of undertaken actions are to increase quality of service and gain more competitive advantages
  16. 16. Building brand awareness (1/4) The launch of InPost on the market - strategy The market Strategy of the research Information Anti-crisis launch materials materials (TNS OBOP) Teaser and Media training educational Website Meeting with and internal campaign opinion leaders communication Official launch Regional press of InPost brand conferences (15 Nov 2006)
  17. 17. Building brand awareness (2/4) Public Relations activities – publications and articles Intensive communication with clients and employees Pro-ecological activity EKOInPost Euro-mailboxes educational campaign Charitable activities – InPost actively cooperates with Anna Dymna’s “Mimo wszystko” Foundation and Ewa Błaszczyk’s “Akogo?” Foundation Contest for customers Investments in the staff Website, gimmickries Many awards
  18. 18. Building brand awareness (3/4) 1695 publications about InPost in 2008 Major coverage in Internet and Press InPost’s name in the title mentioned 514 times in 2008 43 headlines per month on average
  19. 19. Building brand awareness (4/4) Rafał Brzoska broke the monopol The private post – the investment of the year InPost introduces a new service InPost’s postman as a cash machine InPost introduced a new IT system InPost – laureate of „Teraz Polska” InPost insures
  20. 20. Retail outlets
  21. 21. Contact details Rafał Brzoska President of the Management Board