TNT consolidates position as Royal Mail’s key competitor

[TrueBlueTerrier]

http://www.precisionmarketing.co.uk/Art ... titor.html

Source:
Online
ByLine:
Stuart Aitken
Publication date:
15 Oct 2008

Postcomm’s latest Business Customer Survey has confirmed TNT Post as the leading competitor to Royal Mail and the market leading operator in the deregulated postal market.

The survey of 1,800 businesses shows that TNT Post has the highest rates of awareness among business customers of any private postal operator in the UK. Of those surveyed, 38 per cent were aware of TNT Post’s services, with only 24 per cent demonstarting awareness of nearest rival DHL Global Mail.

The survey also highlighted that TNT Post has seen growth across all types of mailing services such as sorted and unsorted solutions.

Chief executive of TNT Post Nick Wells comments: “TNT Post is the main competitor to Royal Mail because we offer a wide range of services that appeal to customers, both large and small. Our brand awareness, as monitored by Postcomm, has increased year on year in line with our new business wins, both at a national and local level throughout the UK.”

Last month TNT announced plans to launch a new global strapline, ‘Sure we can’ as part of wider plans to roll out a new marketing strategy later in the year. The strapline will run across TNT’s Express and Post businesses to reflect the willingness of its employees to go the extra mile, in a bid to differentiate itself from competitors (precisionmarketing.co.uk).

[axeman]

http://www.precisionmarketing.co.uk/Art ... titor.html

Source:
Online
ByLine:
Stuart Aitken
Publication date:
15 Oct 2008

'''Last month TNT announced plans to launch a new global strapline, ‘Sure we can’ as part of wider plans to roll out a new marketing strategy later in the year. The strapline will run across TNT’s Express and Post businesses to reflect the willingness of its employees to go the extra mile, in a bid to differentiate itself from competitors (precisionmarketing.co.uk).

'''

shame they can't deliver 'the extra' mile though

[plodsie]

Doesn't seem to mention that if there were no RM there would be no TNT post either, how many of their customers are aware of that. And for the final time, these leeches are customers of RM, not competitors. I'm sick of the sight of their letters in my pillar boxes with return to sender on them. Why the f*ck should we? We did our bit delivering it and our contract with them is completed. Still, not long until Holland opens it's market up with them getting a taste of their own medicine. Perhaps RM should ask for downstream access and a pathetic regulator over there?

[POSTMAN]

I really do think,although it could never be done officially ie with the CWU's blessing,that we should all have a day/few days when we don't touch anything that is DSA.
Imagine the whole workforce doing it,a protest to the scum killing our industry.

[Night Tonic]

Killing it? Really? Take DSA out and there would be almost nothing to sort and deliver.

[TrueBlueTerrier]

Killing it? Really? Take DSA out and there would be almost nothing to sort and deliver.

Ummm I think thats the point - RM can't compete not just because of mechanisation but because of the "cherry picking" and regulations that we have to abide to - apparently to allow competition to develop.

[F0zziebear]

This comes back to my point in a another thread:

1. Is RM essentially an advertising medium (most mail is now bulk direct advertising)?
2. Is RM a social service that binds communities and individuals with essential communications?

DSA is RM's largest supplier of mail. Refusing to deliver their mail is a criminal offence under willful delay. Admittedly if all of the CWU refused to touch it then locking you all up is not practical, the benefit of mass protest. The safest place for competition right now is as DSA. Youdo not want them doing E2E then that really would threaten your jobs. Keep them using DSA whilst RM refreshes it's sorting network, which is another 5-10yrs away. Once that is done then you can begin to compete on both types of product and price. Then you can allow competitor E2E and see who survives.

The alternative is to protest again the privatisation of RM. Whilst your union continues to financially support and bail-out Labour's deficit the privatisation of RM will continue.

[andy2007]

Killing it? Really? Take DSA out and there would be almost nothing to sort and deliver.

But if it becomes "our" Mail, rather than DSA Mail. What then?
Oh yes. The competitors would have nothing to do, would they?
Because WE would be sorting AND delivering it.

This comes back to my point in a another thread:

1. Is RM essentially an advertising medium (most mail is now bulk direct advertising)?
Sorry to burst your bubble Fozzie, but we also deliver high volumes of items bought on-line.
2. Is RM a social service that binds communities and individuals with essential communications?
No, we don't. Not anymore. People mostly use the Internet for that. Although, there is still a small percentage of the Public, who do still rely on us for that.

However: We do, provide a means of delivery. For a large number of people, who order and/or sell items on-line. In these times of financial hardship. We can help people pay the bills, by helping them make a little extra, on the side, via Ebay.

DSA is RM's largest supplier of mail. Refusing to deliver their mail is a criminal offence under willful delay. Admittedly if all of the CWU refused to touch it then locking you all up is not practical, the benefit of mass protest. The safest place for competition right now is as DSA. Youdo not want them doing E2E then that really would threaten your jobs. Keep them using DSA whilst RM refreshes it's sorting network, which is another 5-10yrs away. Once that is done then you can begin to compete on both types of product and price. Then you can allow competitor E2E and see who survives.
Actually, I think he was suggesting unofficial Industrial Action (although I may be wrong). Personally: Although I think it would be very effective, if it was for a prolinged period (a couple of weeks, for example). But I think it's the wrong way to do it. Because, the Public would suffer more than our so-called competitors.

The alternative is to protest again the privatisation of RM. Whilst your union continues to financially support and bail-out Labour's deficit the privatisation of RM will continue.

You're right about Labour, and the CWU bailing them out. But that's something, we have to try to work at from within. Not by making sarcastic comments.

Having said that: I can't blame you for our attitude. There are many people who are getting disilusioned by the way things are going. It's just a shame that they won't get off their backsides, and turn up at the Union Meetings. So that they can try to make a difference. We're lucky if we get 30 people at our Meetings. Yet, the ones who don't turn up, are usually the worst ones for moaning, and threatening to leave the Union!

[plodsie]

Come on Fozzie, you know fine well that the current situation with DSA cannot be allowed to continue. By allowing cherry-picking the regulator has sent RM on a downward spiral not an upward curve. Even the regulator admitted that RM was in no fit state to face any competition because of the lack of investment in it's people and it's machinery. I really do not think that TNT can or will do E2E as they do not really have to bother. They have had more than 6 years to put one in place but what is the point when you have ready made profits for half the workload. RM is on borderline bankruptcy, any other company with a pension defecit and profit margin would have folded years ago. TNT has not helped to make the situation any better when they concentrate on acquiring RM's most important customers. The fact that they have never offered a public service in all the time they have been here, where Mrs. McGlumpher in Inverness can send a postcard to Mrs.Smith in London for cheaper than RM. They are good at offering cheap prices to Businesses, but 65 million people cannot send mail through them. Some postal service!

[F0zziebear]

The vast majority of RM volume and therefore value is mailsort. It makes up huige baseload volume and is now collected and outward sorted by DSA access providers, of which TNT Mail UK is the largest. They are now RM's largest customer. You point out that most people now communciate via email, so if this is the case then RM cannot be considered an essential public service, but is an essential advertising medium and also an ever increasing fulfillment medium. However, the fulfillment medium is for small to medium size enterprises (of which eBay was mentioned). This is a commercial service then, and one that should be paid for by private suers and not then subsidised by the overall public taxpayer. Whilst I believe thsi to be true, a major part of the UK fabric is seeing a local post office, postie, bobby on the beat (anyone know why there are called this? Me thinks a certain Robert Peel, sorry off track) and other images and personalities that make-up the local community.

I will say and say again that RM's best chance of survival is to ensure that DSA remains and that TNT and DHL do not take this volume and then deliveru it themselves. They know and now recognise this. Whilst this is some pain for RM, it is smaller and less dramatic than having nothing to deliver at all. Lets also point out that the profit margins on the TNT volume is too small for them to set-up E2E quickly. They will need considerable investment by their parent company to achieve this, which they are not willing to do (at the moment). You may disagree with this, and think that cherry-picking is going on, but having been on both sides of the public and prviate sector I can happily inform you that things could be a whole lot worse than they are now. Simply put the current RM strategy within the confines of de-regulation are spot-on and will allow RM to change their infrastructure to compete in every sense of the word in years to come. I appreciate this amy not seem the case when you are puttign TNT/DHL etc. envelopes through people's doors, which must annoy you.

[POSTMAN]

Killing it? Really? Take DSA out and there would be almost nothing to sort and deliver.

Ummm I think thats the point - RM can't compete not just because of mechanisation but because of the "cherry picking" and regulations that we have to abide to - apparently to allow competition to develop.

He knew that teebs..........

[andy2007]

The vast majority of RM volume and therefore value is mailsort. It makes up huige baseload volume and is now collected and outward sorted by DSA access providers, of which TNT Mail UK is the largest. They are now RM's largest customer. You point out that most people now communciate via email, so if this is the case then RM cannot be considered an essential public service, but is an essential advertising medium and also an ever increasing fulfillment medium. However, the fulfillment medium is for small to medium size enterprises (of which eBay was mentioned). This is a commercial service then, and one that should be paid for by private suers and not then subsidised by the overall public taxpayer. Whilst I believe thsi to be true, a major part of the UK fabric is seeing a local post office, postie, bobby on the beat (anyone know why there are called this? Me thinks a certain Robert Peel, sorry off track) and other images and personalities that make-up the local community.

I will say and say again that RM's best chance of survival is to ensure that DSA remains and that TNT and DHL do not take this volume and then deliveru it themselves. They know and now recognise this. Whilst this is some pain for RM, it is smaller and less dramatic than having nothing to deliver at all. Lets also point out that the profit margins on the TNT volume is too small for them to set-up E2E quickly. They will need considerable investment by their parent company to achieve this, which they are not willing to do (at the moment). You may disagree with this, and think that cherry-picking is going on, but having been on both sides of the public and prviate sector I can happily inform you that things could be a whole lot worse than they are now. Simply put the current RM strategy within the confines of de-regulation are spot-on and will allow RM to change their infrastructure to compete in every sense of the word in years to come. I appreciate this amy not seem the case when you are puttign TNT/DHL etc. envelopes through people's doors, which must annoy you.

As you pointed out yourself Fozzie: The profit margins for the so-called competition, are too small for them to provide an E2E Service. If it wasn't. They'd have gradually set one up, over the last few years. Let's face it: Even WE can't turn a profit, based on what they are able to pay for the final mile. And we have been delivering Mail for Centuries!

You're also right about Mailsort being a very lucrative area. Although Presstream is also quite lucrative too. In fact: until the Market was opened to cherry pickers (er, competitors). Mailsort and Presstream, subsidised the rest of RM.

You say that we are no longer an essential Public Service. But are merely an advertising, and fulfilment Business. But I disagree. Just because the majority of people use Email (because it takes seconds to arrive). Doesn't alter the fact, that there are still a minority of people, who still do rely on us. Admittedly, that is a rapidly shrinking group. But they still exist.

Where does it say, that to be an essential Public Service, you can only carry letters?
We deliver whatever the Public want us to (within reason). As you pointed out. I used Internet sales as an example. But that was because, it's a rapidly growing sector of the Market. However: There are also people, who want to send Birthday or Christmas Presents. The possibilities are endless, if we have the drive to go for them.

[F0zziebear]

Andy2007 I completely agree with you on this:

Public services do not always cater for the majority, and in RM's case the provision of a service for birthday cards etc. does not make up the majority of volume and/or profit. However, we can the public and the UK community may decide that that service is essential to the fabric of our society and insist on it remaining, even though it will cost and not return that investment or make a profit. I also refer to things such as local phoneboxes, post offices, corner shop, pub, etc... Iall of these things to some people are considered essential part sof our fabric and identity. So the question is whether we should subsidise this as a society?

Presstream is an interesting one. It was actualy operationally a pain to process as the see-through envelopes did not work well with our A4 sorting machines. I understand (correct me if I'm wrong) that we actively discouraged the presstream market? I know the presstream market were not happy with RM.

At the moment the competitors cannot find a relatively low risk way of breaking into E2E. In the current financial climate the required investment becomes even more risky and therefore I am willing to take a ebt that you won't see active E2E competiton for some time and hopefully Nick Wells can put his schlong away and stop beating it on the table top for a while. Excuse my langugage but it does annoy me that some small-fry person thinks that obtaining bulk mail contracts via DSA makes him some big player. It doesn't because RM has him and the others still by the balls. All of the DSa products are still RM products and until they provide E2E themselves cannot provide USP, even though they present it as such it's just fluffing around the edges.

It amused me that there was a HellMail article about DHL and WH SMith and suddenly you will be posting your mail there and someone will pick it up. No they won't as anyone in the know will tell you that DHL Express and DHL GlobalMail are two separate entities that only merge on the Deutsche Post Board. Therefore unless the DHL Express division are going to break into the letters market and cannabalise their own letters business in the UK it won'h happen. You might be putting your parcels and other fulfillment in ready-made sized boxes/envelopes in WH Smith and then collected by DHL Express, but it won't be anything like a regular mail provision service for the regular public.

F0zz

[norbert]

Doesn't seem to mention that if there were no RM there would be no TNT post either, how many of their customers are aware of that. And for the final time, these leeches are customers of RM, not competitors. I'm sick of the sight of their letters in my pillar boxes with return to sender on them. Why the f*ck should we? We did our bit delivering it and our contract with them is completed. Still, not long until Holland opens it's market up with them getting a taste of their own medicine. Perhaps RM should ask for downstream access and a pathetic regulator over there?

apparently RM has RTS all that junk mail - I agree with you - the only option is to get people to join the Postal Preference Service and DO NOT tick those little boxes in the small print as the mailing lists will be sold on and on .

However look at that guy who encouraged people on his round to do this in South Wales - he got suspended and was told there would be dire consequences if he told tales out of class - so one of his workmates shopped RM to the Daily Mail and RM got absolutely shafted .

He kept his job but got shipped out to a MC for being a troublemaker , however he had to medically retired , ended up a broken man , a stress case with taking the RM system on.

Best way to stop junk mail is to put it in a new envelope return to them and put on RM surcharge this - those firms don't bother updating their address databases as it costs money - many contract out junk mail to factories - I've worked in one - there used to be a exit kept open for staff to dissapear in case the Social came round .

It's amazing how junk mail stops once these firms have to pay the RM surcharge .

[BELIAL]

I think Postman hit the nail on the head with that one. If the CWU were at all serious about exposing the Abuse of a public service for private gain and Postconns conivance in that ,then having an embargo on DSA delivery would be the swiftest way of getting the message across to the public.
If the regulator was truly serious about achieving it's stated aim of promoting competition then it would allow prices to rise to a level where a duplicate E2E distribution network would be a practical reality.
Truth is ,DSA is an open confession that RM is so efficient and cheap, no other company can enter the market place and hope to turn a profit. How many private companies does anyone know of who would have missed the chance to boost their profits for years?
Competition, where are they?