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USPS Marketing team: Sam Adams – Team #7 Ayo Uduokhai, Tadashi Sakashita, Dee Sarma, Manuel Juarez, Francesco Jannuzzi
SCQ Analysis – At a glance…
Situation Analysis – Macro & Industry United States Of America: Population of 308 million people (July 2008) and the l...
Situation Analysis - Customer Business Users Small to large size companies Purchase stamps on company’s account  Stamps de...
Market Research *Research Statistics quoted herewith are assumptions Survey Questionnaire: (Online and Physical) 100 respo...
Situation Analysis -Competition KEY SUCCESS FACTORS ANALYSIS Social Media : Facebook, Twitter Etc Courier: FedEx, DHL, UPS...
Situation Analysis -Competition SWOT ANALYSIS
Marketing Strategy - Target Market Primary Market:  Persona: -A generation of informed and  technology savvy  people  -Eve...
Brand – New Brand e-Stamps is an integral part of a modern lifestyle: @ for internet The heart and check bouncing the stam...
Brand and Positioning – Brand Map Bring back the pleasure and emotional importance of receiving a mail, by creating a new,...
Marketing Mix -Offering Convenience of online purchase of any quantity that can be made 24/7 anywhere that has internet ac...
Marketing Mix- Offering Presentation Basic or Customized (Personal or Corporate) …  and you can customize it like  you  wa...
Marketing Mix - Value Prices are based on weight, size, distance being mailed to and speed of delivery In 2009, 99% of mai...
Marketing Mix - Experience Easy and modern website  www.estampsUSA.com  separated from USPS Online purchase: Secure websit...
Marketing Mix - Relationships Customers can create user accounts: sustain the relationship, create a community and encoura...
Communication Strategies Secondary segment young Secondary Market older Primary segment
Other Communication channels Direct marketing – Flyers, leaflets and banners urging people to use e-stamps distributed ar ...
Communications & Promotions Budget Estimates
Sales Enablement The website itself is the main source of sales  Effective Sales support tools and methodology to be put i...
Marketing Strategy - Objectives Objective 1: launch and sustain the e-Stamps brand  (e.g. 50% of unaided awareness, moving...
Financial   current situation Financial Data  Year ended September 30       (Million) Global Bargain              2009Firs...
Financial Estimates Income   Statement   (Million) ◇ The operating revenue will increase by 1B$ per year thanks to the int...
Hurley’s Marketing Framework Relationship Management Managing Client Relationships Internal & External  Communications...
THANK YOU Q&A B/U SLIDES FOLLOWING Sam Adams – Team #7 Ayo Uduokhai, Tadashi Sakashita, Dee Sarma, Manuel Juarez, Fran...
Objective: Identify and rank key drivers of stamp purchase Confirmation of Purchasing habits identified with surveys and f...
Conjoint analysis details 10=best 1=worst Emotional Price Speed Convenience Estamp & letter 10 8 5 10 Email 4 10 10 10...
Cost Savings Savings can be made in the following areas: - Printing Stamps - Staffing - Stocking and Distribution - Cash H...
References http :// www.fox11online.com/dpp/good_day_wi/web_watch/many-turning-to-e-cards-for-christmas-holidays Source: U...
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International Marketing - USPS e-Stamps Marketing Plan

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International Marketing MBA project of 5 students introducing a new product and presenting a marketing plan for its success.

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International Marketing - USPS e-Stamps Marketing Plan

  1. 1. USPS Marketing team: Sam Adams – Team #7 Ayo Uduokhai, Tadashi Sakashita, Dee Sarma, Manuel Juarez, Francesco Jannuzzi
  2. 2. SCQ Analysis – At a glance…
  3. 3. Situation Analysis – Macro & Industry United States Of America: Population of 308 million people (July 2008) and the largest national economy in the world Over 67% are between the ages of 15-65 2008-2009 recession had a negative impact on the revenues of the postal system Socially the country is very individualistic Internet usage is ramping up, especially among teens US postage Market: present situation State owned postal service operated by “United States Postal Service - USPS” Stamps are purchased at post offices, supermarkets, convenience stores like 7-11, pharmacies like CVS and ATMs Total US Stamps 2009 market revenues: $68b (9% drop from 2008) 177b mail pieces in 2009 handled in USA No stamps online available (Assumption)
  4. 4. Situation Analysis - Customer Business Users Small to large size companies Purchase stamps on company’s account Stamps delivered to the office Buy in bulk Could run out of stock if not monitored Personal Users Any age or gender Purchase at post office, supermarkets or other retail outlets Buy in small bulk or as need arises Pay cash or credit card
  5. 5. Market Research *Research Statistics quoted herewith are assumptions Survey Questionnaire: (Online and Physical) 100 respondents, aged 18 to 50 Students or Employed 10 questions Focus Group: 2 groups of 10 respondents Aged 18 to 50 Students or Employed Conjoint Analysis: 100 respondents Traditional VS e-stamps Price and purchase convenience constraints 79% regret not sending postcards 87% have internet connection and printer 63% use internet at least once a day 72% own credit cards and purchase online 92% choose written communication over e-mail as most personalized mean 70% would send holiday cards to friends and family if a more convenient method was offered 93% inconvenience hinders them from sending mail 18 persons had experienced buying postcards but not posting them as they did not want to go out and buy stamps Nostalgia for times when people wrote letters and postcards E-mailing is overtaking their lives and their loved ones’ Everyone prefers receiving an actual greeting card compared to an e-greeting card Everyone believe the postal system should offer more convenient and modern alternatives Attributes Emotion Price Speed of Service Convenience Importance 35% 15% 25% 25% ---------- 100%
  6. 6. Situation Analysis -Competition KEY SUCCESS FACTORS ANALYSIS Social Media : Facebook, Twitter Etc Courier: FedEx, DHL, UPS etc Text Messages: At&T, T-Mobile, Verizon etc
  7. 7. Situation Analysis -Competition SWOT ANALYSIS
  8. 8. Marketing Strategy - Target Market Primary Market: Persona: -A generation of informed and technology savvy people -Every-day users of the internet -Believe in the power of written correspondence and greetings - Creatures of convenience and believe everything should be done at the click of a mouse - Eligible to be credit card holders in the USA - Deciders, Buyers and Users of products and services Age : 18 to 55, any gender, race, religion, social class in USA Occupation : Students, White Collar and Blue Collar Workers and homemakers Secondary Market: Persona: - Students learning computer education and the use of internet in schools - Teenagers who use intensively social media -Homemakers who are tech savvy and usual users of the internet - Retirees who seek convenience to aid them in old age Age : 13 to 17 and 56 to 65, any gender, race, religion, social class in USA Occupation : Students, Retirees and Homemakers
  9. 9. Brand – New Brand e-Stamps is an integral part of a modern lifestyle: @ for internet The heart and check bouncing the stamp Form a brand identity of its own - Steer clear of the USPS brand
  10. 10. Brand and Positioning – Brand Map Bring back the pleasure and emotional importance of receiving a mail, by creating a new, convenient and way to purchase your customizable postal stamps online . You’ll have an easy, fast and secure online service in your purchase of stamps. No hassle to buy stamps: you can finally send your emotions easily and conveniently Easy going, modern but traditional in caring about emotions
  11. 11. Marketing Mix -Offering Convenience of online purchase of any quantity that can be made 24/7 anywhere that has internet access and a printer! Trace your mail from your own home by keying in the numbers on the barcode E-Stamp with an in-built barcode that can be printed directly onto the envelope or postcard and posted. Price of stamp is calculated accurately online based on weight, size and address Customize your e-stamp with any picture you like! In the future this product can also be further developed to make sending packages to people an easy DIY system
  12. 12. Marketing Mix- Offering Presentation Basic or Customized (Personal or Corporate) … and you can customize it like you want!!!
  13. 13. Marketing Mix - Value Prices are based on weight, size, distance being mailed to and speed of delivery In 2009, 99% of mail pieces (=175B pieces) were sent in category 0.44$ On the concept of value-based pricing there is a premium for convenience and customizability (confirmed by conjoint analysis) Traditional Stamp Price Letter DL size 1 ounce - $0.44 Features: Paper Stamp For use in USA only Drawbacks : Must purchase physically No traceability component unless registered E-stamp Price - Basic Letter DL size 1 ounce - $0.53 (20% premium) Features : Print stamp directly on envelope or postcard For use in USA only Additional Value : Convenience, Unique barcode enables tracking, Website allows customization and personalization of stamps Price – Customized Letter DL size 1 ounce - $0.57 (30% premium)
  14. 14. Marketing Mix - Experience Easy and modern website www.estampsUSA.com separated from USPS Online purchase: Secure website with PayPal to pay via credit or debit cards Link to this website will be prominently displayed on the USPS website Inbuilt postage calculator: key-in the size of the post, weight and “to” address and it tells the amount of stamps to be purchased Before payment, the option of customizing the stamp with pictures will also be available Once purchased, customers will be able to print the stamp directly onto their postcard or envelope without any setup or pop-up
  15. 15. Marketing Mix - Relationships Customers can create user accounts: sustain the relationship, create a community and encourage repurchase Accounts used to communicate special promotions such as: Customization of stamps at basic prices for special causes such as World Aids Day on 1 Dec etc… After purchase of 50 e-stamps, customer gets to customize at Basic price for up to 10 e-stamps Competitions (for eg: Send a postcard to your favorite character from the TV show we tie up with: reference Marketing Communications) Create a community of recurrent buyers and advocates (from Awareness to loyalty)
  16. 16. Communication Strategies Secondary segment young Secondary Market older Primary segment
  17. 17. Other Communication channels Direct marketing – Flyers, leaflets and banners urging people to use e-stamps distributed ar all post offices Blogs – created by the company as well as encourage voluntary blogging Promotional tie-up with banks and credit cards to provide additional value to customers
  18. 18. Communications & Promotions Budget Estimates
  19. 19. Sales Enablement The website itself is the main source of sales Effective Sales support tools and methodology to be put in place: training of all USPS staff tracking online for mail pieces sent with e-stamps
  20. 20. Marketing Strategy - Objectives Objective 1: launch and sustain the e-Stamps brand (e.g. 50% of unaided awareness, moving onto interest and preference…) Objective 2: e-stamp revenues of $1.65 billion in 2010
  21. 21. Financial current situation Financial Data Year ended September 30      (Million) Global Bargain              2009First-class Mail Letter Equivalent Price in U.S. Dollars .44 United States .78 France .77 Germany .64 Great Britain .47 Canada .83 Japan 1.25 Norway Convenient, Reliable, Affordable ◇ U.S. Postal Service is the less expensive service in the world ◇ Operating revenue dropped by 9.1% between 2008 and 2009 ◇ Profitability dropped as well causing the need for a new product to increase revenues and hence increase profits 2007 2008 2009 Operating Revenue $74,778 $74,932 $68,090 Operating Expense $80,105 $77,738 $71,830 Loss from Operation -$5,327 -$2,803 -$3,740 Operation Margin -7.1% -3.7% -5.5% Capital contributions of U.S. government $3,087 $3,034 $3,034
  22. 22. Financial Estimates Income Statement (Million) ◇ The operating revenue will increase by 1B$ per year thanks to the introduction of the e-stamp ◇ We have to invest to create the IT infrastructure for this new business, and also invest a lot of marketing activities. ◇ We estimate that the break-even mail volume is about 182 billion . 2009 2010 2011 2012 Operating Revenue $68,090 $69,742 $71,395 $73,047 Increasing Rate - 2.43% 2.37% 2.31% Operating Expense $71,830 $71,830 $71,830 $71,830 Decreasing Rate -7.6% 0% 0% 0% IT investment - $7 $1 $1 Marketing budget - $12 $12 $12 Loss from Operation -$3,740 -$2,107 -$448 $1,204 Operation Margin -5.5% -3.0% -0.6% 1.6% Capital contributions of U.S. government $3,034 $2,107 $448 $0
  23. 23. Hurley’s Marketing Framework Relationship Management Managing Client Relationships Internal & External Communications Building Client Relationships Marketing Operations — Organizational Development, Management, and Metrics Business Partners — Strategy , Relationship Management, and Communications Sales Support — Training, Support , and Business Development Processes and Tools Voice of the Customer Market Segmentation Opportunity Analysis Competitive Analysis Core Competency Identification Brand & Positioning Solutions Development Life-Cycle Management Portfolio Management Pricing Go-to-Market Strategy Value Proposition Development Brand Communications Thought Leadership Integrated Marketing Communications Public/Analyst Relations Internal Communications Field Marketing Programs Loyalty Programs Solution Quality & Satisfaction Monitoring Reference Management Account Management Solutions Management Meeting Client Needs Strategy & Market Planning Understanding Clients B U S I N E S S R E S U L T S © 2006, ITSMA
  24. 24. THANK YOU Q&A B/U SLIDES FOLLOWING Sam Adams – Team #7 Ayo Uduokhai, Tadashi Sakashita, Dee Sarma, Manuel Juarez, Francesco Jannuzzi
  25. 25. Objective: Identify and rank key drivers of stamp purchase Confirmation of Purchasing habits identified with surveys and focus group Sampling: 100 random customers Methodology: Online At exit of post office Conjoint analysis details
  26. 26. Conjoint analysis details 10=best 1=worst Emotional Price Speed Convenience Estamp & letter 10 8 5 10 Email 4 10 10 10 Social media 6 10 9 10 Txt message 6 2 9 10 Courier 9 1 5 7 Traditional stamp 10 8 1 1 Average 7.5 6.5 6.5 8
  27. 27. Cost Savings Savings can be made in the following areas: - Printing Stamps - Staffing - Stocking and Distribution - Cash Handling However, due to lack of available data, a $ amount cannot be assigned to these savings.
  28. 28. References http :// www.fox11online.com/dpp/good_day_wi/web_watch/many-turning-to-e-cards-for-christmas-holidays Source: U.S. Postal Service Annual Report http :// www.usps.com/prices/first-class-mail-prices.htm The Chaos Scenario – Bob Garfield A Framework for Marketing Management – Philip Kotler and Kevin Lane Keller

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