FINAL EXAM MARKETING PLAN FOR USPS
Section 1: Executive Summary
Executive Summary for the United States Postal Service (USPS)
The United States Postal Service (USPS) for over the past 200 years has continued its mission of delivering affordable, reliable, trusted service to generations of Americans. They are in every community in the U.S. working hard to help their customers build and maintain relationships and grow businesses. To remain sustainable there needs to be an emphasis on efficiency in every aspect such as mail processing, mail delivery, and customer service. Also cost effective solutions needs to be addressed by the management in order to reverse the long trend of net profit loss. In the past USPS's business model was effective
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because the volume of mail increased steadily as the United States continued to grow. However, as technology changed the way Americans communicate, transact business, and changed the overall customer preferences this business model has failed. Even though the number of addresses in America continue to increase mail volume is significantly decreasing which causes USPS operating costs to increase, but still with a decreasing profit margin. USPS is trying all it can to save as much money as possible in hopes of countering the shifts that communication technology has caused. In 2010 more than $7 billion was recorded by USPS as a loss putting them deeper into crisis. It is estimated that by 2020 overall losses could reach a staggering $230 billion or more unless USPS can develop an effective restructuring plan that could help reduce these losses. With tireless efforts and extensive legislative changes the USPS could slow down the current drastic decrease in profit margins in hopes of one day reversing this trend and becoming profitable once again. Section 2: Marketing Strategy Market Analysis USPS has a unique market segment as it focuses on every address in America. These market segmentations include, households, large businesses, small businesses, and state and federal government agencies. All of these segments have great need for the services USPS provides with its trusted, reliable, and affordable mail service. As America continues to grow there will be an increased need for USPS's market segments to communicate with each other in a reliable timely fashion. Currently the greatest threat to the USPS will continue to be advancements in technology that allow more of its current services to be done online. Direct and indirect competitors such as FedEx, UPS, DHL and internet based communication firms continue to dominate the market with the ability to operate as private firms giving them the flexibility to control their specific market segments efficiently. USPS will need to stay competitive with affordable prices, reliable service, and great customer satisfaction if they want to continue to draw in new customers, and retain loyal customers. Section 3: Target Market Demographics and Psycographics Target Customers The demographics of USPS's consumer base is every address in America. This includes ages of 18 and up both male and female. American households make up a majority of the market segment. These households need mail services provided by USPS daily for in going and outgoing communication, bill statements, bank statements, advertisements, and packages. The second market segment is large and small business followed by the third market segment which is state and federal agencies. These market segments need a trusted, affordable, and reliable mail delivery services just like American households which includes in going and outgoing communication, bill statements, bank statements, advertisements, and packages. All of these consumers range from the poorly educated to highly educated. Their customer incomes vary drastically from the poor to the ultra rich. So the lower income customers tend to stick with USPS while those generating bigger incomes tend to use their competitors who offer more services locally and globally. USPS needs to continue to focus on all of their market segments to keep their reputation up by focusing on increasing technology and the reliable nature of their mail service. State and federal agencies require these services to maintain contact with its citizens and to continue its daily operations. Section 4: Competition and Buying Patterns Competition USPS's direct competitors are FedEx, DHL and UPS all of which are private companies who are allowed to governor themselves without U.S government legislation. These companies currently provide almost all of the same services that USPS does both locally and globally. UPS, FedEx, and DHL are all very large and well known global companies with tons of accessible capabilities and services that can outperform USPS. Indirect competitors are technologies such as the internet that allow e-communications which cancels some of the needs that USPS mail service provides its consumer base. Buying Patterns Consumers who typically need a mail and package delivery service usually seek a highly reputable, professional, and can deliver a high quality of service. Price, scope, and time are also a highly sought out factors by consumers who need affordable, and timely service. Section 5: Marketing Mix Products USPS markets mail delivery services and package delivery services to every address in America. These products include a wide range of services including advertisement, communication, bill and bank statements. However due to USPS competition in the market place, and the increase in e-communication tools the demand for such services are declining. Also USPS does not have a competitive advantage in its industry because it is highly regulated by Congress legislation where as its competitors continue to manage themselves and operate as private companies. Price USPS provides a mail service to its customers that is not priced with being competitive. Reasons for this continue to stem from the fact that their prices are highly controlled by Congress. As the demand for their service has declined they continue to increases prices in order to help curve the ever increases profit loss. This is the exact opposite of what the company should be doing. By lowering their prices competitively to try and obtain more market share needs to be a high priority for USPS. The mail and package service industry is highly price sensitive so only by increasing on their product quality and keeping their product priced competitively can USPS draw in new consumers who have migrated over to their competition because of their high quality products with much lower prices. Distribution USPS uses direct marketing. Their product can be shipped from a centralized location directly to its customer anywhere in America. Since USPS can ship to anywhere in the U.S. this makes their product a highly valued asset for their consumers to effectively send and receive mail or packages in a timely fashion. The downside here is that there is a global need for their services, but due to being resisted by legislation to the U.S. only which allows their competitors to be able to grow and dominate the global markets. Their will need to be some modifications to the legislation that redistricts them to the U.S. if USPS plans to compete globally. USPS could potential generate billions in revenue by pursuing global marketing. Promotion USPS needs to focus on offering new products to its consumers. Focusing on the e-communication platform they could potentially find a way to allow customers to send and receive mail via smart phones, or other internet using devices. USPS needs to create a mailing system that makes engages its customers in a more personalized or data specific way. Continue to improve its same-day delivery services so consumers can order products from retailers, and have them shipped same day right to their door. USPS needs to focus on personal selling of current and new products to their customer base. Section 6: Customer Service and Warranties Customer Service The USPS needs to continue to provide its first-class mail overnight, two-day, and three to five day mail and package services.
Customers rely on these services daily so by keeping their customer service high both from the product side and face to face customer relations USPS can retain their loyal customers while hoping to gain additional consumers. A survey needs to be done in order for the USPS management to be able to evaluate their customers experience and overall performance measures relating to their product. Customers know what they want and what they need, and for USPS to be able to reach out and identify what that is will be a tremendous tool for operating decisions in moving …show more content…
forward. Warranties Currently USPS has no warranties. They only offer addition purchased insurance if the customer wishes to purchase. They are not liable for delayed shipments, consequential damages, or circumstances beyond their control compared to their competitors that due offer certain warranties for their products. If USPS wants to stay competitive, and continue to bring high level of customer satisfaction it is imperative that they offer some sort of warranty for their services. By offering a warranty the company is standing by their product showing their customers that they care about them. This in turn generates some brand loyalty thus helping increase return customers. Section 7: Evaluation and Results The success of the USPS will be whether or not they can continually bring effective restructuring plans to congress, and implement the changes accordingly..They will need heavy legislation reforms to help manage their decreasing profit margins from underperforming locations, and outdated service routes.
To guarantee the survival of the USPS it will have to at some point become privatized. By becoming a private industry they will be able to manage themselves which allows them restructure, reorganize, and control costs effectively to make them competitive once again. The USPS needs to continue to follow its business strategy which includes delivering results through innovation, technology, and customer satisfaction. USPS is going to continue to have a uphill battle as management and the firm continue to navigate through significant organizational changes. USPS's management and Congress are going to have to keep functional dialogue open as they continue to collaborate on proposed strategic restructuring
initiatives. Company Analysis/ SWOT Analysis Strengths Over the past few centuries, the United States Postal Service (USPS) has provided the American people a secure, affordable, and efficient mail service. Being the oldest mailing system, continually upgrading in technology, and their timeliness of deliveries USPS demonstrates its strengths to its consumer base. Even though the USPS has been struggling for years, they have been improving and upgrading their service in an effort to make its products more accessible to its customer as well as keep up with its competitors. USPS has begun to provide its services online, and use technology like computerized equipment to sort hundreds of millions of pieces of mail every day. In order to provide better product service to their customers USPS use shipping incentives like flat rate shipping, purchasing and shipping items online, package insurance and tracking. With the success of their first-class mailing system USPS has been able to provide very efficient overnight on-time delivery services to their customers. Weaknesses USPS's customer service has declined a staggering amount leading to customers getting feed up and using their competitors services instead. Some of the biggest complaints against USPS stems from shipping issues like losing packages, shipping packages to wrong addresses, and then on top of this poor customer service when customers try and figure out what has happened to their packages. Another reason for USPS struggles is strict micromanaging and restrictions placed on them by Congress. USPS cannot take the appropriate measures to fix some of the declining revenue factors like closing, or liquidating under-performing stores to recover costs because of Congress. Overall USPS biggest weaknesses are Congress, higher mail prices leading to lower mail volume, and poor customer service. USPS is on an unsustainable downward spiral, and if they do not come up with a solution soon there is a high probability that USPS will not be around in the future. Opportunities The USPS's transformation plan that was submitted to congress outlined a plan to improve its service, effectively manage costs, improve the workplace, increase customer satisfaction, and manage its financial options. As a result of this plan the USPS improved in performance and customer satisfaction as well as cost saving innovations through technology. With proper organizational restructuring, and advanced technology utilization, the USPS could become profitable once again. Privatization could also be an effective avenue of approach. This would allow the firm to actually operate like a privately owned business by being able to govern itself and apply proper modern practices such as management, finance, marketing, and investing. Another opportunity that USPS is seeking is trying to provide financial services to Americans which would provide another public service to its consumer base while simultaneously boosting revenue. Threats Mainly the rise of technology associated with electronic communications such as email, personal messaging, ability to make payments online, and online bill statements have really crippled the usefulness of the USPS. Increased competitiveness from private companies who operate locally and globally have started dominating the market place by being able to offer more services cheaper, and more efficiently. Positive and negative economic conditions are always a threat to a firm as well as political regulations such as healthcare, labor laws, and wage increases. Overall the USPS largest immediate threat will continue to be Congress. USPS is structured just like any other privately owned package delivery company, but Congress prevents them from operating like these private companies. Being obligated to service all Americans no matter where they live, and not matter what it costs to deliver this service is causing unsustainable financial problems. Without reform or restructuring of the USPS there will continually be declining revenue until there is no physical possibilities of keeping the firm operating. America would lose its oldest mail service who has been loyally serving generations of Americans for centuries.
There are some exceptions were perfect competition isn’t the best choice for the public on account of various reasons. The United States Postal Service is one of them and since the Postal Service is a monopoly, it is its own market. This paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the United States Postal Service to continue as a monopoly. The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amounts of money in the long run. But since the Postal Service is a necessity for America, the government had to subsidize the service in order for it to continue in operation.
1. Describe the nature and causes of the U.S. Postal Service orientation problem in the case. I offer that the causes of the U.S. Postal Service orientation problem are that the informal orientation and training structure is not defined clearly and it lacks the structure to ensure new employees are adequately prepared for their jobs as letter carriers. The poorly designed orientation and training process that is offered beyond that provided by Burgess is based on assumptions and is not reflective of well-planned design, implementation and evaluation phases of training as defined by Nick Blanchard and James Thacker.
Restructuring the U.S. Postal Service to achieve sustainable financial viability. (2009, July). Retrieved January 17, 2010, from http://www.gao.gov/new.items/d09937sp.pdf
The U.S. Postal Service is one of the largest organizations in the world. In fiscal 2005, it had nearly 705,000 career employees and handled about 211 million pieces of mail through an extremely complicated system of carefully coordinated activities (United States Postal Service Annual report, 2005).
Verizon Communications Inc. is one of the leaders in providing communication services around the world. Its primary offerings are wireless, wireline, and broadband communication resources to meet residential, business, and government needs. As a leader in its industry, how can Verizon continue to grow its business? What strengths, weaknesses, opportunities and threats impact the success of Verizon now and in the future?
Environment Destroyer “One of the things the government can 't do is run anything. The only things our government runs are the post office and the railroads, and both of them are bankrupt.” These are the words of Lee Iacocca, and although Iacocca was sarcastic about the power of the government, what about the post office (post office quotes)? Is the fine, dandy, and efficient post office we had back in the 1800s still apart of our world today? According to PSB.Org the Post office is on it’s way to complete deterioration (Lee).
The customer support and customer service functions are more than departments; they are part of an essential strategy for growing your business. In the modern business climate, customers expect answers to their questions immediately. When the right information is available anytime, from anywhere in the world, customers are more likely to have a positive experience, thus customer loyalty will be increased. It is a known fact that the cost to obtain a customer is ten times higher than to maintain and keep existing customers. (Gouran, Dennis, W.E. Wiethoff, & J.A. Doelger. (1994). Mastering communication. 2nd ed. Boston: Allyn and Bacon.) Not in Reference Pg.
The first post office in the United States was established in seventeen seventy-five, which makes it the oldest most reliable post service in history. It is a well know fact that in the beginning, this business was called the Pony Express, which began in eighteen sixty. Years later the US Post office has become the largest company that we rely on to deliver our mail. This mailing institution delivers more mail to a larger area than any other delivery service in the world. They are rendering assistance to more than one million people in North America. There are over six hundred thousand employees and in excess of thirty four thousand facilities nationwide. This institution thrives to provide customer service, available products, transport of products, and accessibility to all consumers. The United States Postal Service is a reliable, excellent, and efficient delivery service. They supply a wide variety of convenient products to help with any shipping needs consumers may have.
At one point or another, we have all held and opened a piece of mail. Whether it was a birthday card, a letter from a friend, or even a bill, we have all held a piece of paper that was sent from somewhere else. Even in the age of Facebook and email, it is likely that you have held a piece of mail and most likely, the way it got from point A (the person sending the mail) to point B (the person receiving the mail) was through the United States Postal Service, or the USPS. In the past decade, the postal service has experienced a decreased volume in their letter mail. In fact, for the postal service, the volume of this letter mail has been "falling at a rate not seen since the Great Depression" and it is believed to be because the "substitution [of snail mail] to Internet-based communications" (Geddes). The postal service has started to experience such a decline in funds that they now face the issue of staying afloat. The United States Postal Service has to dig their way out of rut in order to keep from going down into extinction. Peter Rorvig, a United States postal worker in Zirconia, North Carolina, talks some about the USPS's struggles and the involvement that Congress has with the USPS in his blog "More Normal than Not." This passage raised two outside questions, exactly what is the postal service trying to do to solve this decline in funds and how much is Congress actually involved with the USPS?
To begin their approach, RFS must address the Management-Research Question Hierarchy to properly identify their dilemma and develop the management, research, investigative, and measurement questions. Based on the D. K. Shifflet survey of customer satisfaction, RFS could accurately state their management dilemma as increasing customer satisfaction at their many properties.
Besides to the dramatic change of internet to the consumer purchasing pattern and retailer selling pattern, the consumer today have become less tolerant of service failures and likely to expect better services that are more than the average. In addition to this, the consumer demands more for personalized service. It can be a difficult task for FedEx to satisfy all customer needs.
FedEx started offering SCM services to its customers on a very small scale in 1974.With increasing demand for services such as in...
New technologies are allowing us to do things faster, easier, and more efficiently than ever before. Almost every new innovation in technology improves the speed and productivity of any task at hand. Electronic mail (E-mail) is possibly one of the greatest things to happen to the world. Despite this, there are people who find difficulties in using either E-mail or conventional mail. To help decide whether to use E-mail or the United States postal Service, a comparison of each one’s speed, ease of use, reliability, and cost is a helping factor.
But why bother if it is heavily subsidized by the government, creating a competitive advantage. The central risk of bringing postal delivery once more under government control is that its capacity to keep up proficiency and continue top of innovation may be exhausted. That is not an unfavorable regulatory test. However, the test of keeping up universal postal service as a profitable business endeavor may well be unrealistic. It's a public benefit, and it should be the taxpayers' responsibility (Michael Hiltzik,
MASSAD, N., HECKMAN, R. & CROWSTON, K. 2006. Customer Satisfaction with Electronic Service Encounters. International Journal of Electronic Commerce, 10, 73-104.