Indian Post Office- Redefining Distribution

Indian Post Office- Redefining Distribution : 

Indian Post Office- Redefining Distribution Presenter : Aniket Bushal

Introduction : 

Introduction The DOP functioning under brand name India Post. It was founded in 1764 The Indian Postal Service, with 1,55,669 post office is the most widely distributed post office system in the world. Employees are 5,20,191 as on 2007

Main issues in the case : 

Main issues in the case Post office sold 2 or 3 postal items per day. Generating lower revenue. Majority of postal office in India suffered. Increasing use of telephone, e-mail and courier service has decrease there importance. Postal office suffering Rs. 16 billion loss.

Redefining Distribution : 

Redefining Distribution Financial Services 2001- ICICI signed up to market safety bond. Western Union tied up to transfer money. Mutual fund company IDBI and SBI. 2002- Standard Chartered Finance Ltd. To distribute credit card. 2004- UTI installed ATM in villages. ICICI further extended its relations with PO by tying up with post offices across India for electronic money transfer in rural India.

Slide 5: 

Non Financial services 2003- Emami distributed its products through post office. Kodak used PO as delivery centre for color lab in rural& semi urban areas. The DoP also planned to increase its business by tying up with Godrej Consumer Products, Hindustan Lever, and Marico Industries. 2005- Reliance Infocomm sold its RIM prepaid recharge. Cell one was also selling its vouchers BPL also planned to sell its recharge coupon Idea decided to sell its sim card Nokia also started to sell its cellular phone. The DoP expected to get additional revenue of around Rs 8 billion per year.

Questions : 

Questions Many companies are entering into tie-ups with post offices in India. What do youthink are the reasons behind such partnerships? PO strong network. Reach in rural and semi-urban areas. Don’t have offices in rural areas. To increase the distribution channel. Potential policy holder can fill form in their local language. Made possible for company to access the untapped rural market

2. Post offices are all set to become an important entity to many companies, especially in rural markets. In this situation, discuss the steps that post offices should take to cope with the increasing responsibilities and to render effective services to customers. : 

2. Post offices are all set to become an important entity to many companies, especially in rural markets. In this situation, discuss the steps that post offices should take to cope with the increasing responsibilities and to render effective services to customers. Regular communication or advertisement should be there. Time effectiveness Provide higher rate of interest on deposit Proper training to the employees Attractive infrastructure Outsourcing some activities to improve efficiency.

SWOT : 

SWOT Strength Strong network Reach in rural and semi-urban areas Cost effective More employee More branches & more facilities Weakness No advertisement Not provides loan to customers Unchanged working culture and age-old work culture Lower rate of interest on deposits

Slide 9: 

Opportunity Technological advancement Developing communication with other countries Developing good rapport with people Providing communication service through internet Threats Courier services Customer dissatisfaction Banks

Thanx : 

Thanx