Tag: UK

Royal Mail practices what it preaches and encourages media integration

Royal Mail has launched an integrated business to business campaign to demonstrate the power of combining direct mail and digital media.

The integrated campaign called “Meet Mr Complete” features direct mail and a microsite both created by Proximity London. It centres on the idea of integration being a more complete way to communicate with customers. Recent research by Royal Mail revealed that integrating digital advertising with direct mail campaigns can increase customer spend by almost 25 per cent.

Meet Mr Complete targets more than 5,000 business people to demonstrate that using digital and direct mail together achieves greater impact with consumers.

Activity begins with a personalised direct mail pack designed to look like a computer desktop. Inside each pack are instructions on how recipients can fold the mailer to create their own origami Mr Complete man. To encourage further engagement with the campaign a unique personalised web address is printed in each mailing which will take recipients through to an individualised Meet Mr Complete microsite.

Once online customers are guided through their own personal site by Mr Complete; an interactive 3D animated character, who demonstrates the benefits of integrating direct mail and digital media. Mr Complete finishes the journey by offering a follow up phone call from a Royal Mail media expert.

The campaign concludes with a final direct mail pack with a hand-crafted Mr Complete origami man personalised with the recipient’s name and reminding them of the positive brand benefits and increased campaign effectiveness that integrating direct mail with their digital offering can bring.

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Amtrak launches Credit Card facility

Amtrak, the business to business and home delivery parcels operator, is launching a credit/debit card payment option to make it easier for small companies and individuals to use their parcel services.

“We believe this will appeal not only to small businesses but also to people selling on the web or sending goods occasionally,” says Alan Jones, Managing Director, Amtrak. “Customers don’t necessarily want to set up an account but want a quick and easy way to organise sending a parcel.”

The popularity of web auction sites and the growth in the number of people working at home has led to a significant increase in the demand for collection and delivery of one or two parcels from residential addresses.

“Our new service enables people to send parcels without leaving the house – and especially without standing in a queue at the Post Office,“ says Mr Jones. “We also have special services for goods of high value – either cash value or sentimental value – and we anticipate people will use Amtrak to send all kinds of items.”

Amtrak is also a specialist handler for fine wines, and already offers a Personal Express (delivery only to a specifically named person) and Tender Express (for important tender or contract documents) service.

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Royal Mail posts drop in profits

Royal Mail said on last Wednesday 31st October revenue in its letter business was down 78 million pounds (USD 162 million) in the first five months of the current year and annual operating profit dropped by one third.

State-owned Royal Mail, which lost its 350-year monopoly on postal services last year and recently faced strikes by workers, said it expected to be trading around breakeven this year and next due to declining mail volumes and investment.

The group reported operating profit for the full year 2006-2007 year of 233 million pounds, in line with expectations, following a sharp rise in pension fund costs to 722 million pounds from 193 million, falling mail volumes and increased competition.

Royal Mail said it faced making annual payments of 800 million pounds over the next 17 years to cover both its pension deficit of around 5 billion pounds and ongoing contributions.

Royal Mail’s Chief Executive Adam Crozier has said the company desperately needs to modernise, and was investing around 4 billion pounds to do so, to compete and prevent the business from failing.

The firm has plans to reduce its workforce by around 40,000, or 27 percent, by automating mail sorting processes and to fight private competition from Business Post Dutch mail company TNT NV and others.

The growth of email, text messages and the availability of vehicle tax discs and television licences online have also dented profits.

The Communications Workers Union (CWU) said earlier this month over 130,000 staff walked out in a dispute over pay, pensions and shift changes, causing delays and disruption, particularly to firms dependent on mail order business.

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Express Delivery under Pressure to Add More Value as Parcel Service Closes the Gap

Europe’s parcel and express delivery business is expected to continue to grow at a higher rate than in previous years due to an increase in business-to-consumer (B2C) traffic and strong international demand, according to new research by market analyst Datamonitor.

However, the research, “European Express Market Map 2008,” which covers 12 major European markets, says that although currently exhibiting a higher growth rate than parcel services, express services are going to have to demonstrate extra value as customer demand is shifting to using cheaper yet reliable parcel services in key growth areas of international and business-to-consumer (B2C) delivery services.

“Over the next five years, the B2C and C2C (consumer-to-consumer) sectors will experience faster growth than B2B (business-to-business), due to increased e-commerce activity, especially in less mature home delivery markets such as Italy and Spain,” said Erik van Baaren, Datamonitor express analyst and author of the study.

International services are also growing at a higher rate primarily due to the enlargement of the European Union and the trend to centralize operations to fewer countries and outsource manufacturing to low-cost countries, according to van Baaren.

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Minister for Transport inaugurates DHL's state-of-the-art hub

DHL Express officially opened its new purpose-built hub today near Dublin Airport. Minister for Transport, Mr. Noel Dempsey T.D., officiated at the opening of the premises in Dublin Airport Logistics Park. The new hub is central to DHL’s strategic development plan for its business in Ireland. The facility will be the focal point for all DHL’s international air express, road express and domestic delivery services.

The purpose-built hub, which is located on a 13 acre site, utilises the latest state-of-the-art technology including a highly sophisticated automated sortation system which contains over 700 meters of conveyors and is capable of handling up to 7,000 parcels per hour. The system automatically routes national and international shipments to one of 118 pick-up and delivery doors, 24 cross-dock doors and 30 line-haul doors for distribution via the DHL national and international networks. Shipments for delivery to more than 220 countries serviced by DHL are consolidated on airline containers to connect with DHL’s A300 airbus cargo aircraft nightly service from Dublin airport.

Bernard McCarthy, Director & General Manager of DHL Express in Ireland, said at today’s official opening, “The completion of the new hub is a significant milestone for DHL Express in Ireland and reinforces our commitment to invest in our infrastructure and to further improve the services we offer to Irish businesses. The new facility is the centrepiece of our operational network in Ireland and will ensure that we are well positioned to meet the growing needs of our customers throughout the country.”

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