Tag: Royal Mail

Royal Mail fights to keep public onside

Royal Mail tonight launches its first advertising campaign in 18 months in a bid to boost its brand credentials before the market is opened up to competition next year. The company, which handles 83 million items a day for 27 million UK addresses, hopes the campaign will boost its brand credentials and link Royal Mail to the “magic of mail” as the company’s monopoly on home delivery is broken in January. “Royal Mail has been preparing itself for the introduction of full competition for some time. Naturally we want to cement our position as market leader by having advertising that communicates the impressive service we offer the UK each and every day,” said Tom Hings, the head of brand and advertising at Royal Mail.

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UK Postcomm calls for more innovation to create a viable rural Post Office network

The rural Post Office network should be planned using more innovative methods of service provisions such as mobile post offices and partnerships with other organisations or communities. “Some of the 8,000 rural branches throughout the UK are in busy market towns, but others may serve only five customers a week,” Nigel Stapleton, chairman of Postcomm said. “There is no single model for all these situations and Post Office Ltd needs to be flexible to sustain access to postal services – perhaps a travelling Post Office – in the smaller and more remote communities.” Post Office Ltd is due to report to the government at the end of 2005 on pilot schemes for more flexible provision of Post Office services in rural areas. Postcomm recommends that the rural network should be planned to reflect the local population and small business distribution to ensure access to cash and to help village stores and other rural businesses to survive.

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UK Post Office strangling branches

Thousands of post offices face the axe because of red tape that subpostmasters say will ruin their businesses. They believe that the Post Office’s archaic curbs on how they work are stifling opportunities to thrive. But their efforts to overturn what they see as unfair terms in their contracts with the Post Office have been rebuffed. The Association of Convenience Stores, which has 10,000 post office members, lodged a complaint with the Office of Fair Trading last December over the contracts between the Post Office and subpostmasters. The association, backed by the Postmasternetwork website, claims that the contract is anti-competitive because it prevents sub-postmasters who run their own businesses from operating on equal terms with other retail outlets. But after a ten-month review, the OFT says it is closing its file unless the association can supply new evidence within the next few weeks.

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Union attacks Royal Mail chief’s comments as ‘frankly insulting’

A third of Royal Mail managers are “not up to the mark”, the chief executive of the state-run business told a meeting of Britain’s business leaders. Adam Crozier’s comments at the Business Insider Elite Leadership Awards, where he was guest speaker, were described by the Amicus union as “frankly insulting”.
Responding after his speech to a question about future challenges for the company, Mr Crozier said the Royal Mail had 15,000 managers, of which “5,000 are fantastic, 5,000 are good and 5,000 are not up to the mark”. He also said it was important for senior management to “take ownership of bad news”. The company has shed more than 30,000 jobs across the board over the past three years and a Royal Mail spokesman last night admitted he “could not rule out” further job cuts.However, he insisted: “That is not our agenda for these managers.”

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Service perceptions key to future of UK postal market

Three quarters of Royal Mail business customers say they would move some or all of their business if a competitor offered equivalent service quality at a 5% discount, but 82% believe that Royal Mail’s service is better. The findings reveal that although caution is prevalent in the business mail market, volume might quickly find its way to alternative suppliers if the general perception of the services levels offered by the private sector improves. In addition, Postcomm’s 2005 Business Customer Survey revealed that only half of Royal Mail users are happy with the state-owned company and 20% expected its introduction of size-based pricing to increase their use of alternative operators. Postcomm highlighted its unhappiness with the level of customers’ awareness of the competition timetable and of alternative suppliers.

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