14/02/2014 1.1.1

Presentation on Marketing of Money Transfer in India Post

Introduction

• DOP offers number of Products & Services to its customer• In order to remain competitive, DOP should to be aware of

its– Market Share – Customer needs & Expectations– Customer Satisfaction Level

• For this purpose, DOP through IMRB International conducted a customer satisfaction survey among the customer of Seven product/service categories

• One such category is Money Transfer – Domestic – International14/02/2014 1.1.2

14/02/2014 1.1.3

Money Transfer

Domestic International -InwardInternational -

Outward

With Bank Account

Without Bank Account

NEFT

RTGS

CARDS

Cheques/Drafts

ATMs

Mobile Platform

Formal INFORMAL

India Post-Traditional

Banks(DD<20000)

India Post electronic , instant

India Post-MMTS

With Bank Account

Without Bank Account

SWIFT/Wire Transfer

Cheque/DD

Cards

Direct Transfer

Mobile Platform

Money Transfer Agents

Banks –various platforms

India Post –MO Videsh

Various Modes of Money Transfer

• Domestic Transfer (Without Bank Account)– Official (India Post, Banks)– Unofficial (agents, friends & relatives)

• Domestic Transfer (with Bank Account)– Transfers using NEFT, RTGS, Cards, Cheque/Draft, ATM , mCheck etc.

• International Transfer (Without Bank Account)– Inbound (through Money Transfer Agents like WUMT, MoneyGram)– Outbound (India Post’s MO Videsh)

• International Transfer (With Bank Account)– SWIFT/Wire Transfer, Cheque/Draft, Cards & Direct Transfer

14/02/2014 1.1.4

Various Modes of Money Transfer

Money Transfer Channels

14/02/2014 1.1.5

Market Share(Domestic)

14/02/2014 1.1.10

Market Share (International)

• India receives the most inward remittance in the world

• World bank estimates USD 63.5 billion (Rs. 342900 crores) inward remittances in India

• A small part of this remittances made through agencies like Western Union and they come into play only when recipient does not have a bank a/c

• Majority of remittances are done through banking channels as they are faster and cheaper

14/02/2014 1.1.11

• Remittance by India Post through WU are approximately 2.5%

• Total remittance done by WU into India is 15000 crores of which India Post’s share is 44.3%

14/02/2014 1.1.12

Market Share (International)

The 4 Ps of Marketing are • Product • Place • Pricing• Promotion

14/02/2014 1.1.15

Product

• In Domestic Money transfer the key would be– Switch to electronic mode– Increase the speed of delivery

14/02/2014 1.1.16

• Awareness and perception are not major problem areas

• Most users and non-users are aware of Money Transfer service by India Post

• Communication regarding Electronic/Instant Money Transfer can be done

14/02/2014 1.1.18

Promotion

• Even though there is not much flexibility for pricing we still can attempt to reduce the impact of non competitive pricing through– Appointment of franchisees– Use of vast network of postmen to collect money

from the sender

14/02/2014 1.1.19

Price

MONEY REMITTANCE SERVICESDiscussion on Self Study

Material

14/02/2014 20

MEASUREMENT PHILOSOPHY

14/02/2014 23

Business Success & Customer Loyalty

Business Success

Loyalty

Perceptions & Attitudes

Transactions & Experiences

14/02/2014 1.1.24

Business Success & Customer Loyalty

• Business Success is a function of Loyal Customers• Customers in turn base their loyalty behavior on

the basis of their perceptions regarding the Department

• Perceptions may be related to Value, Cost, Quality of products & services & image perceptions

• These perceptions are due to a combination of experiential and non-experiential factors

14/02/2014 1.1.25

STRATEGIC PRIORITY&

EXPECTATION OF CUSTOMERS

14/02/2014 26

Critical Improvement Areas

• Procedure/Documentation– Time taken at the Post Office, to complete the

documentation– Ease of filling up the form– Options available in terms of amount of money

that can be sent/received

14/02/2014 1.1.27

• Postal Employees– Helpfulness of the postal employees in giving

information or solving the customer queries– Knowledge of Employees about Money Transfer

Process, locations– Politeness of the Postal Employee– Speed in responding to customer queries

14/02/2014 1.1.29

Critical Improvement Areas

Customer Comments/Suggestions

• “Money should reach fast, Service charge should be lower”

• “Postal Staff should be helpful, Transactions should be fast”

• “Acknowledgement receipt of delivery”• “Postal employees should tell about Tracking

Facility”• “There should be better queue management”

14/02/2014 1.1.30

CONCLUSION &

RECOMMENDATIONS

14/02/2014 31

Key strengths

• Positive perception of being ‘Safe and Secure’• Key differentiating facilities like ‘Delivery to

home address’ in eMO• Price/Commission• No bank account required on part of receiver

14/02/2014 1.1.32

Key Focus Areas

• Training for Postal Staff• Timeliness of the remittance• Create awareness of Instant Money Order• Create awareness of the amounts that can be

transferred• Acknowledgement incase of iMO• Convenience of timings

14/02/2014 1.1.33

14/02/2014 1.1.34

14/02/2014 1.1.35