• on Aug 6th, 2012 in Finances: Cost & Revenue | 10 comments
    The Postal Service has built a strong brand name around service, trust, and security. Few other organizations can lay claim to such a strong brand, one with more than 200 years of history and cultivated by the Postal Service’s consistent fulfillment of its mission to securely deliver mail to every American, regardless of location, at a reasonable price. For 6 straight years, the Ponemon Institute has named the Postal Service the most trusted government agency and one of the top 10 most trusted businesses in the nation. Many postal observers have encouraged the Postal Service to leverage this “trusted brand” to expand its offerings in the digital market. But a steady drumbeat of bad news over the past few years around its financial situation, potential cuts in service, and uncertainty over its retail and network downsizing plans has unsettled stakeholders. The question many of them ask is whether the ongoing negative news coverage could be hurting the overall brand. Even the PMG noted earlier this year that the mailing industry is experiencing a “crisis in confidence.” Lingering uncertainty about the Postal Service’s future could further erode confidence. Further, competitors can use the turmoil to their advantage, touting their own services as easy and reliable in the face of uncertainty. What do you think? Have the ongoing news reports about the Postal Service’s finances and uncertain future affected your view of the organization? Do you think these reports hurt the Postal Service brand? Or is the Postal Service doing the best it can under the circumstances?
  • on Jun 4th, 2012 in Products & Services | 14 comments
    Following the success of the Priority Mail ® Flat Rate Box® advertising campaign, the U.S. Postal Service has decided to use the “If it fits, it ships” letter carrier (actor and comedian Mike Bradecich) as the public face for one of its newest products, Every Door Direct Mail (EDDM). The campaign’s new tag line, “Every home, every address, every time” describes the new product’s main advantage: small businesses can target every address in their local area without having to provide every name and address. EDDM is a different product than the Flat Rate Box because it’s geared toward small business customers. The Flat Rate Box is intended for both individuals and businesses. One of the new television commercials points out the value of direct mail for small businesses over other types of advertising options like billboards. This message is intended to appeal to local businesses, like restaurants and doctor’s offices, which may not advertise much to begin with and face tough decisions about where to put their limited advertising dollars. It remains to be seen whether a mass media advertising campaign is the best way to bring these small businesses into direct mail, even if supplemented with direct mail and online advertising. Check out two of the new television advertisements: Official USPS Chicken Commercial Official USPS Billboard Commercial The main message in the campaign is simplicity. Businesses no longer need mailing lists, and they can drop off their mail (up to 5,000 pieces) at their local post office instead of Business Mail Entry Units. Given the smaller audience and the larger cost for this product, it remains to be seen if EDDM will be as well received as Priority Mail, but the Postal Service appears to believe this product has potential. Revenues for EDDM since April 2011 (when the product was introduced) have grown rapidly and could increase as the economy continues to improve. The advertisements began running in April on TV and the campaign will include print, radio, and direct mail. So, tell us what you think about this new advertising campaign. Have you seen the new advertisements? How do you think this advertising campaign compares to the Priority Mail campaign? Does it do a good job of addressing the needs of small businesses?
  • on Apr 16th, 2012 in Delivery & Collection | 4 comments
    Starting in April, the private company TNT Post UK plans to test street delivery in the West End of London. Currently, TNT collects and sorts mail and then hands it over to Royal Mail, the traditional government-run postal provider in the United Kingdom, for final street delivery. Now, however, TNT Post UK wants to provide street delivery as well. TNT is seeking assistance from the UK government to provide a level playing field that will allow it to compete effectively with Royal Mail’s delivery service. Royal Mail says that rival delivery networks hurt mail customers by undermining the efficiencies of a single delivery network, stating "If a rival delivery service cherry picks profitable, easy-to-deliver mail, it will weaken and ultimately undermine the Universal Service that only Royal Mail currently has the ability and commitment to deliver..." Britain’s postal regulator, Ofcom, plans to monitor the situation. Overall, this move represents another step toward a liberalized postal market in the UK, similar to those in other European Union countries. What are the benefits and risks of promoting this type of competition in the delivery market? What could happen if a private company sets up a rival street delivery network that only served profitable areas, such as West End of London? Could the traditional provider, Royal Mail, compete in the more profitable areas if it also is forced to provide delivery services to less profitable addresses in rural areas?

    This blog is hosted by the OIG’s Risk Analysis Research Center.

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