India Post - Moving Beyond Mail Services | Services Marketing Case Studies

Details

Case Code : CLSM010
Publication date : 2005
Subject : Services Marketing
Industry : Courier and postal services
Length : 04 Pages
Price : Rs. 100

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Key words:

Department of Posts (India Post), Mail Services, Financial Services, Premium Services, Postal Savings Bank, Restructuring, Business Operations, Very Small Aperture Terminal (VSAT), Work Conditions, Ergonomics, 'E-Post', Internet Technologies, E-Bill Facility, Datapost, Locational Advantages, UTI, Prudential ICICI, IDBI Principal, SBI Mutual, Western Union Financial Services Ltd, Reliable Service Provider

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet highlights the problems faced by Department of Posts (India Post) due to which its performance deteriorated during the early 1990s. India Post decided to restructure its services on two fronts - revamp business operations, and offer a wider range of services. This caselet discusses these initiatives in detail and also describes the efforts made by India Post to increase process efficiency. The caselet also elaborates various new services launched by India Post catering to changing needs of the customers. Finally, the caselet outlines India Post's new retailing strategy aimed at utilizing its vast branch network spread across the country and making these branches one-stop shops to address the different needs of the customers.

Issues:

  » Use of technology in postal services.
  » Importance of place in services.
  » Need for diversification by Post Office.
  » Marketing of financial services in India.

Introduction

The Department of Posts (India Post) of the Government of India, with a 150-year-old history and 155,000 post offices throughout the country is one of the oldest and largest service organizations in the country.

It offers three different categories of services - mail services (letters, parcels and post cards), financial services (savings bank, money order, and postal life insurance) and premium services (speed post and business post). The postal savings bank has the distinction of being the largest bank in India, in terms of reach, number of accounts, and annual deposits...

Questions for Discussion:

1. The financial year 2000-01 saw the financial deficit of the Department of Posts peaking at nearly Rs 15bn. What were the reasons for this scenario?

2. Yield management is a key strategy used by service providers to maximize revenues. How far did India Post succeed in using the yield management strategy while restructuring operations, to reduce the financial deficit and improve operational efficiency and revenues?