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Australia Edition 1

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AUSTRALIA i' THE MARKET

AUSTRALIA i' THE MARKET Australia's messaging and dehvery marketplace has changed dramatiCAlly s1nce 1990. Those c t~anges have createa new challenges lor Australia Post In an 1ncreasingly competltNe environment. The biggest challenge has come from competitors usrng new electronic distribution technologies. The tradrllonnl wntten letter nt::Nv faces competition from a new range of other methOds for getllng the message across, among them telephone and facsimile SCNICOs. e-ma11, the internet. EDI and electronic bani-Jng. However, pubhc acceptance ot tradrtionallerter and moil SCNrces as more personal and secure l1as seen ma11 volumes conhnue to grow steadily. Today, Australia Post handles more than four billion artrcles a year. By the year 2005. lhrs rs expected to exceed SIX billion articles. ACHIEVEMENTS In less than a decade, Australra Postl1as transformed its image. corporate culture and operatrons to emerge as one of Australia's most successful businesses. TI1e corporallsatron of Australia Post1n 1989 meant that, for trm firstlirne. rt was requrred to operate commeraally. The nevvly formed corporation at once began to implement an intens1ve program to strearnhne and upgrade all aspects of operations and to strengthen the Australia Post brand in tho market place. One result of that rs that on fJvery frnancral and operational measure, Australia Post's performance today is the best it has ever been. Prolrtability has more than quadrupled S1nce 1989, with retum on average assets rising from3.5% to 15.4%. Australl8 Post's product1vity hfls rmproved at over three times the natrona! rate - up by 38% Slr1C9 1990. lnternati011ally, Aus1raha Post 1S among U'le Western world's best petformrng postal enterprises. provrding the highest level of SCNICe while marmarning 1t1e standard letter rateat45c. HISTORY T11e Post Office is the oldest SlJNNing commercial organ1sa hon in Australia. Its origins can be traced to tt1e appoint· ment of a former convict, Isaac Nicols, as the hrst Postmaster rn Sydney 1n 1809. Until 1!)8t year. there vvere no fonnal arrange· 1nents for receiVIng or sending letters. In 1901 control of posts and te.egraphs was forfl"ally handed over I rom the colonres to the Commonwealth of Australia. Austmha Post itself was established in 1975 out of tile Post· master General's DepMment to provide tllo natron·s postal service. Its spec1hc requirement was to link communrties everywhere in Australia with a stnndard lette1 seNrce at a srngle price. In 1989. Australia Post l)ecame a Government Business Enterprise, with a new obligation to operate comrner­ CIDIIy. Its respons1bilities for postal services remain unchanged Today Australia Post offers an extensrve range of physical and electronrc rnessagrng and delivery SCNICCS. THE PRODUCT Australia Post provides a full range of Iotter and parcel SeN1ces to all fXJriS of the nation, 1nclvdrng rural and remote areas. II also proVIdes a range of related services. including electronic bulk mail handling; advertising mail; bill payment, money order and banking seNices. express delivery services, and philatelic products and &'Crvicos. Australia Post sets the rntemalional benchmark for reliability of letter deliveries (94% of standard letters delivered eariy or on limo) and the cost oi sending mail1n Australia tS among U1e lowest rn the wortd. Australia Post handles an average 16 million mail articles evCly working day. In add1t1on to its postal network. 111s also the nation's largest linancral nel\NOrk, with more than 130 m1llion financ1al transactions serviced each year. And 11 also operates the largest over-the-counter bill payment seNice tn the country. More than one in fiVe consumer bills are pard through Austra!l8 Post. On top of all that, Australia Post tuns Australia's most extensive retail network, wrth some 4400 postal ouUets, serving 800,000 customers every day with three b1llion tronsactions llandted evetyyear. Customer satisfaction rs a pnmary focus of the revrtalised Australia Post. A network of customer service centres rnonrtor customers' expenence of Post's products and seNrces daily. RECENT DEVELOPMENTS The face of Australia PoS! has changed Significantly ove1 recent years with many of its 4500 postal outlets relocated. reconfigured and re-equipped with purpose burlt electronic countCI technology. A range of postal related products and electronically accessed financial serv1ces, including bank1ng. are now available through Australia Post. Today, Australia Post is providing a 'one spot' bill payment service whrch enables customers to pay a range of accounts at one location. Australia Post's share of the total Austmhan bill payment market IS now over 16% and grovvth in this bustness IS prOjected at 14% per annum over the next three years. Banking rs another rmportant new part of Australia Post's complementary services business. Australia Post 1s not a bank However. 1n 1995 it commenced its 'giroPOST on-line banking seNice Which connected five banks to the seNice it previously offered only to the Commonwealth Bank. This service is now provided for ten banks and building societres. In !his capacity Austrolia Post handles cash deposits and withdrawals and transfers between accounts either from passbooks or debi! and credit cards. Australia Post is also working on several new services that wrll meet electronic cornrnunrcatron 16

S.l..t --.'"' ... \". \)"'1 llg: 4~ Parcel i'OST Satchel tion also 11e1ps raise awareness ol services such as Pay it at Post (a l:)ill paying serv~ce). Express Post International. Parcel Post. Money Orders. EMS International and Business Airmail. Regular Delivery within Australia _,.., 1 customer base. television is the key advertising medium. W1th a large. dtverse _ ... ------- ____ ------ --------.. -·- ----- ------..-- J ~{,.10 (' However, newspapers and magaz1nes are often used, particularly for bus1ness products. From trme to time, corporate aclvertistng IS undertaken to provtde Australians with information about Australia Post's performance such as 1ts on time delivery record and its record Christmas mail volumes. needs. to provide the Integrated mail of the future. It is a matter of Australia Post policy that all new services must stand alone commercially, without subsidy from letter seNJce revenue. Meanwhile. Australia Post IS rnvesting almost 0 mill1on on modern1sing 1ts national letter ann parcel delivery networks. The network renewal program includes the purchase of new equpment. Significant upgrad ng ollocllrttes and the opening or new high-tect1 postal centres. PROMOTION The promotion of Australia Post is based largely on the products and serv1ces 11 prov1des. rather than on the use or corporate advert1sing. This strategy, based as 1! 1s on customer needs, has resulted 1n h1gh awareness of the broad product ortenng of Australia Post Express Post. w1th 1ts dtshnclive gold letter boxes. has enjoyed spectacular growth since 1! was launched 1n the early 1990s. One 1n ten businesses now use th1s service every day. Televis1on advertiSing has been a key marketing tool, with a senes of 15 second commerc1als which take a lighthearted approach to demon strate the low pnce ol th1s express postal service. The success of the strategy prov1ded the 1mpetus to use a sim1lar approach for the promotion of gtroPOST, Australia Post's agency service lor banks, and the same style of promo- BRAND VALUES The Australia Post symbol is one of the nation's most widely recognised corporate brands. It was des1gned in 1 975 when the Postmaster General's Department was spht to create Telecom and Australia Post. In its entirety the 'P' symbol stands for Post. Its component parts represent a postal hom. once used by European 'post1es' to announce mail delivery, and a circle tllustrating the global reach ol the postal serv1ce. The coloUI red has long been assoc1ated with postal serv1ces in Commonwealth countnes. U1 1usually for suct1 a large serv1ce prov1der, Australia Post has also been seen over the years as being a fnendly organ1sation. In regular customer surveys, Australia Post is seen as 'doing an Important job well' and as a 'prov1der of a reliable service'. As Australia Post expands its range of products and serv1ces, embrac1ng new technology as it does. its core values encompass live ma1n themes. Australia Post stnves to be contemporary displaying technical proficiency and sophistication. It seeks to be progressive, meeting world's best practice benchmarks. It is competttive. It remains customer focused. with knowledgeable. helpful and fnendly staN. And 1\ stnves to be flex1ble - meeting the d1verse demands ot all its customers. 0 ~ pro>.1des one dfie prtCecJ postS servces stM1ps frozen at 45c since 1992 0 .A.rroal revenue of .9 billion plaoe8 AUstralia Post among Australia's top 40 corporatiOnS 0 H handles an average 16 msUion mall arttcles every wor1

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