Friday, January 29, 2010

INTEGRATIVE CUSTOMER RELATIONSHIP MANAGEMENT PROGRAM FOR ROYAL MAIL GROUP LIMITED

2.0 Executive Summary
The paper examines some of the challenges facing parcel force as it operates within this highly competitive industry. First of all, the company is faced with competition from technology based solutions such as emails. Other issues include a lack of flexibility to increase prices and the lack of innovative products. The paper has provided solutions to these challenges against the framework of customer relationship management and one of them is through employee training and technologically based products.

3.0 Key Issues
Parcel Force is one of the SBUs of the Royal mail Group Ltd. The latter company has been relatively successful over the years and has established a name for itself in the postal services sector. However, because of the challenges associated with the industry and this particular company itself. Parcel Force is in dire need of establishing a new source of competitive advantage. The pathway chosen to achieve this objective is the Customer Relationship Management Plan. (Smith, 2008)

Customer Relationship Management is particularly necessary owing to the fact that the overall UK consumer has become more informed about what he or she is looking for in the postal service sector. Additionally, competition has heightened tremendously within this arena especially given the fact that postal services have become deregulated. Part of the reason for these occurrences is the advent of technology. Electronic dissemination of information has made the market and industry scene for Parcel Force to become quite competitive. On top of the latter, consumers now want faster delivery of their goods and are also looking for quality in service provision. (PA Consultant group, 2008)

Given all the latter issues, there was a need to reorganize this company so as to provide excellence in service provision. Part of this reorganisation process is the creation of a three year long strategic plan that will be centred on creating a long term goal of success for this particular company. If implemented properly, the latter customer relationship management plan could be the pathway to making Parcel Force one of the most competitive postal service providers in the UK market. However, this implementation process could be a difficult one because it a well know fact that CRM is rather tricky for most companies. If the latter company sticks to the gaols of this program, then it may make it very difficult for other groups to try and imitate them.

3.0 Vision, Mission, Corporate Objectives
3.1 Vision
“ to create the most reputable and efficient mail service provider in the United Kingdom through focus on the consumer.”
3.2 Mission
“ to enable all the consumers achieve their personal objectives through provision of sound and efficient solutions by Parcel force”

3.3 Corporate Objectives
The corporate objectives will be covered under three major objectives;
The company will focus upon expanding its current market. While the UK has a relatively positive image to the issue of postal services, it is imperative to reach those few numbers that are not using this service currently. The second objective will be providing quality services through greater innovation. In other words, technology will be a key factor in improving these matters. The last objective will reflect on the profitability of the latter company as a business enterprise - this means that the company will be one of the most profitable companies in the postal sector. (is4profit, 2008)

4.0 Situational Analysis
4.1 Macroeconomic analysis
The UK mail service has been directly associated with growth in the population. This is largely because a rise in population means a larger customer base. However, the economy has embraced a lot of emailing thus diminishing the rate of growth of mails. On top of the latter issues, the UK economic situation is such that there is a direct relationship between mail growth volumes and Gross Domestic product level. Statistics have shown that the amount of mail volumes in the United Kingdom usually increase or decrease at the same rate with the GDP.

4.2 Market analysis
Rate of growth in the market has faced a substantial decline owing to a number of issues. First of all, transactional mail has reduced since most companies are emailing bills to their clients. However, the latter section depends highly on greetings cards as a source of revenue. Another sector that has led to growth in this sector is the publications market. Most people prefer receiving publications through mail rather than through direct purchase from stores. The delivery of packets is also growing with an estimated thirty three billion growth worth of UK postal consumers being attributed to this section. Advertising mail is also an important market segment here owing to the fact that long and elaborative mail is based delivered personally rather than through online services.

4.3 Industry analysis
The UK postal services have been recently liberalised. Consequently, most consumers and companies are now seeing the benefits of this move. First of all, more postal service providers have entered into the market thus providing the consumer with greater choice. Besides this, consumers are also benefiting from the low prices and greater quality that have become synonymous with this particular service.

It should also be noted that the issue of price within the postal service sector is a largely important one owing to the fact that competition is mostly based on this aspect. Consequently, there are concerns about the role that innovation plays within this industry. However, recent surveys have shown that digital communications have provided a new avenue for catering to client needs.

4.4 Internal analysis
Parcel Force is undergoing numerous challenges currently. Between the years 2006 and 2007, its mother company Royal Group Ltd recorded one of the first losses in the market. The company recorded 29 million pounds worth of losses during that financial year. The latter results were brought on by an inability to raise prices to boost revenue. These matters were further compounded by a whooping 3.4 billion pounds worth of pension deficits. Besides this, the latter company is grappling with slow responses to market and industry forces in the latter area.

4.5 Summary of the current situation
Given current declines in the global economy, the UK has also been affected. Owing to decreased GDP performance, Parcel Force is likely to record lower levels of performance if nothing is done. In terms of the market analysis, the UK still depends on mail as a basic mode of communication. However, Parcel force must look for ways in which it could minimise competition from online substitution in a number of its market segments such as transactional mailing. (Smith, 2008)

A recent survey of the postal service sector as an industry has shown that competition based on innovation still has a long way and needs to be adopted. On top of the latter, Parcel Force must also look for ways in which they can cope with their internal situation. What this means is that the company must upset their losses brought on by pension schemes and lack of price controls.

5.0 Marketing objectives
They are as follows;
1) Engaging the customers more with the organisation
2) Bridging customer relationship management with high quality service
3) Involve consumers and employees in the communication process

All the marketing objectives are centred on making Customer Relationship Management a key source of competitive advantage for Parcel Force. In other words, these objectives are a breakdown of what needs to be done during the customer relationship management program. The first objective is with regard to engaging consumers a little more into the organisation. This objective can only be achieved by understanding consumer expectations and knowing which phase of the plan will be imperative in making the most of these issues. It should also be noted that this phase involves putting things back in the correct order as asserted by the consumer. For Parcelforce, taking remedial action would entail improving the quality of service provision. For instance, time and time again, consumers have complained about the quality of service provision from Parcelforce claiming that quality is still a challenge. For instance, a client once complained that he found his parcel at the side of his door. Such sorts of behaviour need to be corrected by the company.

For effective customer relationship management, it is crucial for Parcel force to ensure that the meaning behind the messages they are giving are well understood. In other words, this normally implies that the receiver of the communication must be the sole focus in this regard. The communication made to the consumer must be relevant, they must be dependable, they should be well laid out and they should also contain relevant information. Besides these, the information must be delivered to the client on time. (PA Consultant group, 2008)

People involve in the process of communicating must be such that there is indeed a positive attitude towards costumer relationship management. On top of the latter, the program must be such that it includes people and employees of the organisation in the process. On top of the latter, there should be a number of skills that will be involved in the process of implementing this marketing program and the skills entail analytical skills and organisational skills. All members of the organisation need to be in a position where they can link the issue of profitability and the issue of Customer relationship management.

It should be noted that all the latter objectives involve understanding what the consumer is thinking rather than just agreeing to what they are saying. Parcelforce may find it incredibly impracticable if they try to implement everything the client says. Instead, the company needs to comprehend what they are saying and then look for practicable solutions which they can use to implement these actions. (Smith, 2008)

6.0 Marketing Strategies
In order to fully understand the marketing strategies for this particular company, it is essential for an in depth analysis of the issues surrounding marketing within the company and then place them in the context of customer relationship management.

6.1 Strengths
In order to place these matters in context, it is essential to look into some of the benefits that will emanate out of the customer relationship management plan. Some of them include reducing costs hence efficient operation of the company. Additionally, there will be increased consumer satisfaction and possible growth in the number of consumers. On top of the latter issues, it is also likely that the number of opportunities available to Parcelforce will be increased and that any sources of poor operations will also be curbed.

6.2 Weaknesses
Any good customer relationship management program must be such that it involves all members of a particular organisation. If there is a failure of the members of Parcelforce to fully understand this program, then chances are that it may resort to failure. Besides this customer relationship management will entail a lot of resource allocation towards communication, training the employees and improving quality of services. All these may initially eat up the profits of the company but may be soon mitigated with ample results. (PA Consultant group, 2008)

6.3 Opportunities
Since technology has become a source of competitive advantage, then there is a need to look into ways in which this can improve the levels of consumer satisfaction within the market. First of all, the latter company needs to work hand in hand with internet companies to set up product that consumers can use to implement the overall strategy.

6.4 Threats
The major problem that could emanate in implementation of the customer relationship management program is failure of members of the organisation to realise the benefits of this program and thus implement it poorly.

7.0 Implementation
7.1 Product
Given the advent of technology, then the latter company needs to embrace this aspect through the use of I mail services. In other words, they could get orders from consumers through e-mail, then print those specifications and send them to specified correspondents.

7.2 Place
In order to ensure that effective customer relationship management is attained, there is a need to tap into all the regions within the UK. However, because the issue of personal mail accounts for only ten percent of the returns that are obtained by Parcel force, then there is a need to focus on residential locations when implementing the marketing strategy. Business premises will take up a substantial portion of the customer relationship management techniques since they are the most prominent users of Parcel force’s services. (Smith, 2008)

7.3 Price
The company is in such a position that it cannot compete directly based on price. However, because it will be offering new product packages, then chances are that the new innovative technological products should be sold in a cost effective manner. This product will go for a lower price than most other company services.

7.4 Promotion
The Postal services in the United States have managed to create a different image of postal services given excessive competition from the internet. They have restored the personal touch into their endeavours. Similarly, Royal force’s Parcelforce needs to show the people of UK just how personalised their services have become. This can be achieved through a series of advertisements and effective campaigns that can be displayed though common media outlets that included television, radio and the internet.

7.5 People
Customer relationship management entail sound coordination of both the employees and the staff members involved in the process. This is an aspect that will be duly achieved though effective training on the part of the employee and more focus on the client.

7.6 Processes
In terms of improving the operation processes of this company, it should be noted that there will be a wide level of coordination of the parcel delivery service when there is sound coordination of these matters especially in relation to the overall nature of the parcel delivery service. (Parcel Force, 2008)

7.7 Physical evidence
Other developed nations that have attempted implement some of the suggestions put forward in the latter parts of the marketing strategy. For instance, in the United States, it has been found that most of the companies in that country have embraced advertising campaigns that have actually worked for them.

8.0 Budgetary requirements
The company will have to invest in the use of customer relationship management software. Statistics have showed that the latter approach is a suitable tool. Additionally, it will have to leave out some finances that will centred towards the education of their employees on how to implement these customer relationship management techniques. On top of these, investment in quality improvement will entail a lot of finances too. All in all, in order to ensure sustainability, their company will have to reduce some of its costs for instance through selection of less expensive carriers. (Smith, 2008)

9.0 Control, Milestones & Corrective Action
In order to ensure that this plan works, there will be a need to monitor the infrastructural aspects of the service i.e. through vehicles, people and buildings. Another milestone will be the effective volume increases and improved fixed costs. Lastly, the implementation of the program will also entail an analysis of performance attributes linked to employees within the organisation.

Conclusion
Parcel force is in dire of improving some of it services so as to fall in line with the increasingly competitive environment today. The major ways in which it can do this is through improvement of its service provision through customer relationship management and also through sound technology.

References

PA Consultant group (2008): Maintaining postal service levels; Associate Press
Smith, I. (2008): The challenges and opportunities facing the UK postal services, retrieved from http://www.berr.gov.uk/files/file46075.pdf. accessed on 8th January 2009
is4profit (2008): CRM- What are the benefits, retrieved form http://www.is4profit.com/ accessed on 8th January 2009
Parcel Force (2008): About us, retrieved from http://www.parcelorce.com/ accessed on 8th January 2009

The author of this article is a holder of Masters in Business Administration (MBA) from Harvard University and currently pursing PhD Program. He is also a professional academic writer. ResearchPapers247.Com>

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