Royal Mail plans PIP blitz to all UK homes

Royal Mail is planning one of the largest marketing campaigns in its 350-year history, thought to be worth nearly #15m, for the launch of its controversial pricing in proportion (PIP) scheme.

The push, to target both businesses and consumers, will include a PIP ‘template’, allowing customers to work out exactly how much they will pay before going to the Post Office. Every UK household – about 26 million – is to be targeted.

The campaign will feature a major direct marketing blitz. Royal Mail’s direct account is handled by Proximity London. Abbott Mead Vickers BBDO handles advertising.

A Royal Mail spokesman says: “We will be using a mix of media to promote what is possibly the biggest change in the postal service’s history. We have already started communicating with more than 200,000 businesses, so that they can prepare for the new pricing structure.”

Most of the activity will launch in the new year, as the changes do not take effect until the end of August.

Royal Mail first revealed plans to price by size, not weight, nearly four years ago (PM February 22, 2002), sparking a major row within the direct industry, predominantly over fears that it would hit creativity.

Following Postcomm consultation, Royal Mail has made a number of concessions – appeasing magazine publishers, mail order photo developers and the catalogue sector – although many direct marketers still oppose the scheme.

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