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US Direct Mail Spending Forecast Sees 7.5% Icrease

Posted by | Dec 5, 2006 | |

It may be the Internet age, yet consumers should expect old-fashioned direct mail to keep clogging their mailboxes. Marketers’ spending on direct mail will swell 7.5% to USD64 billion next year after growing 8.5% this year, according to respected ad forecaster Robert Coen, who on Monday presented his industry-wide 2007 look-ahead at the annual media conference hosted by UBS. That means direct mail will continue to be one of the fastest-growing ad formats. “More and more mail advertising is being used … and all of this despite the fact that postal rates went up about 5%,” says Coen, forecasting director at media buying agency Universal McCann. Part of its allure, he says, is that it’s easy for marketers to track response rates compared with, for example, a 30-second TV ad. As for the ad spending outlook overall, both Coen and fellow ad forecaster Steve King, CEO of rival media-buying company ZenithOptimedia, say they expect U.S. spending growth to slow in 2007. Coen sees total ad spending next year rising 4.8% to USD298.8 billion. King forecasts 4.2% growth and a total of USD280.2 billion.

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Portuguese postal service hit by strike

Posted by | Dec 4, 2006 | |

Transportation and distribution workers at Portugal’s state-owned mail company CTT have staged a one-day strike today over job security issues, which a union official said would delay mail deliveries.

The postal company said it would give priority to express and registered mail, as well as to the delivery of old-age pension checks and shipments of medicine, during the strike. Post offices were not affected.

The National Union of Mail and Telecommunications Workers called the strike to protest plans by CTT to shift its large-volume customers, who account for 70 pct of the firm’s revenues, to another company called Mailtec.

Union officials argue the measure would put between 300 and 400 jobs at risk.

Postal workers at Portugal’s three main sorting offices staged a weeklong series of stoppages during the last week of November over the same issue.

Postal workers have called a general strike involving all departments for December 27.

CTT employs some 13,000 workers. It handles around six mln items a day.

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Postal strike called off

Posted by | Dec 4, 2006 | |

A 24-hour strike by hundreds of Royal Mail sorting staff in Exeter has been called off just hours before the walk-out.

Around 400 members of the Communication Workers Union were due to stop work at the mail centre in Exeter Devon at 2pm on Monday.

Royal Mail was bringing in 450 managers to help maintain the service.

But a Royal Mail spokesman said they had been told the dispute was now off.

The stoppage was due to take place over a dispute over working practices at Exeter.

CWU spokesman Phil Chadwick said although the action had been called off, it could be on again next Monday if agreement was not reached at talks with the Royal Mail.

But he said good positive progress had been made in talks with the Royal Mail.

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Deutsche Post plans changes in parcel delivery

Posted by | Dec 4, 2006 | |

It is reported that Deutsche Post, the German national postal services provider, is planning to merge the parcel and mail shipment divisions and outsource other divisions of the parcel delivery division to external companies. It is feared that these drastic changes will entail further job cuts at Deutsche Post. From early 2007, the company does not intend to employ its own staff at 280 areas in parcel delivery. It is said that the operating division will be most affected, as so-called joint delivery, that is the combined delivery of mail and parcels by mail deliverers, is to be extended. Redundancies are ruled out until the start of 2008, however, owing to the employment pact agreed with German trade union Ver.di.

The parcel sector has come under great pressure from competition, whereas the mail sector accounts for the majority of the company’s profit. Last year, the company had turnover of 44.6bn euros, of which 12.9bn euros came from the mail division, and 18.3bn euros from the express division, which deals with parcel delivery.

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Deutsche Post plans major parcel restructuring in Germany

Posted by | Dec 4, 2006 | |

Deutsche Post is reportedly planning to merge its parcel delivery operations in Germany into the mail business in one of its largest restructuring moves for a decade. At the same time, unions are threatening strike action over plans to lengthen working times next year.

According to a report in German newspaper Die Welt, there would be only one delivery organization and one administration for both the mail and parcel businesses. At present, there are separate delivery organizations for parcels and mail in urban areas, while rural deliveries are bundled into one service. The 83 mail sorting centres and 33 parcel sorting centres that are no longer fully utilised could also be combined into one structure.

Unions Verdi and DPV said they feared a new round of job cuts among tens of thousands of staff affected by the move. Deutsche Post’s domestic parcel business is reportedly loss-making due to high operational costs of the parcel sorting centres and pay levels above those of competitors.

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DHL Express announces appointment of Keith Lovetro as Executive Vice President of Marketing for its U.S. operation

Posted by | Dec 4, 2006 | |

DHL Express today announced the appointment of Keith E. Lovetro, as Executive Vice President of Marketing for its U.S. operation. In his new role, Lovetro will be responsible for the company’s key marketing functions. Lovetro reports to Hans Hickler, Chief Executive Officer, DHL Express USA, and is a member of the Express U.S. Management Board.

“Keith is a seasoned industry veteran with the skills and in-depth knowledge of our industry that will be critical as we build on the momentum DHL Express has accomplished in the U.S.,” Hickler said. “Keith brings a strong track record of accomplishment to his new position and deep experience in development of sound go-to-market strategies that will serve us well in 2007 and beyond.”

Lovetro began working in the transportation industry in 1980 for C.F. Airfreight. He gained additional experience working at Emery Worldwide, Amdahl Computers and most recently spent 12 years in various positions of increasing responsibility at FedEx Freight West. Lovetro was most recently President and Chief Executive Officer of FedEx Freight West, based in San Jose, Calif. He received a Master of Business Administration degree from Santa Clara University and a Bachelor of Arts degree from the University of California at Davis.

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Deutsche Post to merge parcel delivery ops in Germany with mail ops – report

Posted by | Dec 4, 2006 | |

Deutsche Post World Net AG is planning to integrate its parcel delivery operations in Germany with the mail delivery operations, Die Welt said, citing company sources.

It said the move will be part of a radical restructuring of the company’s ailing parcel delivery operations.

Trade union officials said they are worried the move could affect around 180,000 employees.

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market moves: Wal-Mart may look at home delivery in India

Posted by | Dec 4, 2006 | |

Wal-Mart, which is foraying into India through a tie-up with the Bharti Group, is considering `home delivery’ for the Indian market, which will be the first in the world for the company. Its market research has shown that Indian households usually stock vegetables and groceries on a weekly basis.

Therefore home delivery makes sense for top-ups for a household’s grocery requirements.

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