Upload
ngohanh
View
215
Download
2
Embed Size (px)
Citation preview
CONFIDENTIALPage 4 | May 2015 | ICPA Conference | Canada Post
Security and Trust
are Vital
What is Changing What will not Change
Brand Matters
Mail has a RoleConstant Connection
Multi-Channel Advertising
Mobile Transactions
More Online Shopping
Need for Convenience,
Simplicity & Reliability
Evolving customer and consumer needs are driving
change in our markets …
CONFIDENTIALPage 5 | May 2015 | ICPA Conference | Canada Post
… this is resulting in considerable pressures and change
within our core businesses
All focused on consumer experience and relevance
Labour
• Competing against low cost models
• Labour flexibility critical
Parcels
• Pressure on numerous fronts - faster, cheaper, & more convenient
• Retailers pursuing Click & Collect or ship from store
• Move to 1:1 or “1:Few”
Marketing
• Integrated solutions are the norm – stand alone solutions under pressure
• Highly targeted is a requirement
• Need for low complexity
CONFIDENTIALPage 6 | May 2015 | ICPA Conference | Canada Post
We’ve passed the point of uncertainty, competitors are
taking actions that threaten the role of Posts
Parcel CompetitorsDM Competitors
• Final mile
• Retail alliances
• Parcel lockers
• Upstream end-to-end
• Multi-channel
• Integrated end-to-end
• Data enabler
• Loyalty and consumer-preferences
Communications & Commerce Ecosystem
Traditional Competitors New Models
21
Retailers require solutions that enable their
business strategy in an omni-commerce era
Digitally enabled consumers with near unlimited choices are
highly demandingCompetitors are taking significant actions to address
changing market requirements
CONFIDENTIALPage 7 | May 2015 | ICPA Conference | Canada Post
In Canada, Direct Mail competitors have adapted to
meet marketer needs
+
�
� � � � �
� � � � �
� � � � �
� �
◑ ● ◑ ◑ ● ◑◕ ◕ ◕ ● ● ◕◑ ◑ ◑ ● ● ◑◑ ● ◑ ● ● ◑◑ ● ◑ ○ ● ◑
Pla
nn
ing
Ta
rge
tin
g
An
aly
tic
s
Dis
trib
ute
Pri
nt
Cre
ati
ve
Multi-Channel Assets End-to-End Services
Channel partners
Partner
Sticky customer relationships
Media breadth is immense asset
CONFIDENTIALPage 8 | May 2015 | ICPA Conference | Canada Post
How we position, sell and execute on Direct Mail must
evolve
Traditional Competitors
Digital Competitors
Communicate the Value /
Relevance of Direct Mail
Optimize Sales Channels
Innovate marketing product/
solution portfolio
Reduce Direct Mail Barriers
Our strategy addresses these threatsOur intermediation role is under threat
• Search
• Social
• Mobile
• Integrated solutions
• Delivery networks
• Digital properties
• Content creation
CONFIDENTIALPage 9 | May 2015 | ICPA Conference | Canada Post
Traditional Parcel (B2C and B2B) competitors aim to
win the e-commerce market
Acquisitions• Genco• Bongo
• i-parcel• Dynamex, Ensenda,
ICS, Canpar
Initiatives• Fedex Global
Returns • SenseAware
• ORION • UPS MyChoice• Temperature True Cryo
• TForce Integrated Solutions (TFI)
Expansion• Windsor Airport
Cargo Hub • Calgary Airport
• 3 BC operating centres• Calgary Healthcare
space
• Growth by acquisition (10 in past 4 years; 140
over 15 years)
Partnerships• Home Hardware • DocuSign Inc
• Access Points• Google Express• Amazon (Toronto)• Target
Competitors are expanding their assets & capabilities to serve the
changing market requirements for omni-commerce
CONFIDENTIALPage 10 | May 2015 | ICPA Conference | Canada Post
Those are traditional competitors, what about
new disruptors?
Largest taxi company owns no vehicles
Most popular media owner creates no content
Most valuable retailer has no inventory
Largest accommodation provider owns no real estateOur New
Reality
CONFIDENTIALPage 11 | May 2015 | ICPA Conference | Canada Post
New disruptors come in many forms ….
Parcel CompetitorsDM Competitors
• Final mile
• Retail alliances
• Parcel lockers
• Upstream end-to-end
• Multi-channel
• Integrated end-to-end
• Data enabler
• Loyalty and consumer-preferences
Communications & Commerce Ecosystem
Traditional Competitors New Models
21
Platforms
• New labour models
• Convenience & speed solutions
• Asset light & scalable
• Data & digital
3
Retailers require solutions that enable their
business strategy in an omni-commerce era
Digitally enabled consumers with near unlimited choices are
highly demandingCompetitors are taking significant actions to address
changing market requirements
CONFIDENTIALPage 12 | May 2015 | ICPA Conference | Canada Post
Disruptive platforms can (and do) act as intermediaries
in the Parcels & Courier market
Asset-free platforms coordinate
contracted resources & assets
Success depends on business adoption, contractor adoption, quality & logistics
management, net volume density
CONFIDENTIALPage 13 | May 2015 | ICPA Conference | Canada Post
The platform model challenges current postal & courier
business models
Postal courier experience is based
on cost, reach, trust, and speed
Platforms offer new combinations
of cost and convenience
Cost Reach(National)
SpeedConvenience &Flexibility
Trust & Security
VALUE DRIVER
ILLUSTRATIVE
Large cities only
CONFIDENTIALPage 14 | May 2015 | ICPA Conference | Canada Post
Platforms have the potential to serve consumers’
changing needs and intermediate many relationships
� Can facilitate optimal
delivery for time-
sensitive grocery
delivery (refrigerated
items, fresh produce,
etc.)
Groceries
� Could comingle
heavies from different
retailers to further
improve the
economics
Heavies
� Platform actions could
push this to be the
perceived standard
� Would allow a delivery
window of choice (i.e.
before work, after
work, etc.) and boost
convenience for
consumers
Same Day
� Focus on e-commerce
growth in urban areas
� Can facilitate faster
delivery, flexible
options (i.e. time of
day, location, etc.),
lower cost, and higher
convenience
Parcels
CONFIDENTIALPage 15 | May 2015 | ICPA Conference | Canada Post
Platforms can enable same day & ship-from-store
Platforms can rival our economics & experience for dense, local delivery
1-2 days @ ARP $X
Illustrative
VS
Hudson’s Bay Co.
Platforms enable convenient “1: Few” relationships at a competitive price
Order by 5pmDelivered 7-9PM
@ ARP $X
CONFIDENTIALPage 17 | May 2015 | ICPA Conference | Canada Post
� On-demand, asset-light final mile delivery
� Rapid & flexible delivery
� Good urban urban reach
Requires sufficient density and infrastructure
A contracted final mile would hit the very core of the
Post advantage
Contracted Final Mile
CONFIDENTIALPage 18 | May 2015 | ICPA Conference | Canada Post
New disruptors come in many forms …. Ecosystem players
are also massive threats for disruption
Parcel CompetitorsDM Competitors Ecosystems
• Final mile
• Retail alliances
• Parcel lockers
• Upstream end-to-end
• Multi-channel
• Integrated end-to-end
• Data enabler
• Loyalty and consumer-preferences
• End-to-end solutions
• Convenience & speed solutions
• Scalable
• Data & digital
Communications & Commerce Ecosystem
Traditional Competitors New Models
2 41
Platforms
• New labour models
• Convenience & speed solutions
• Asset light & scalable
• Data & digital
3
Retailers require solutions that enable their
business strategy in an omni-commerce era
Digitally enabled consumers with near unlimited choices are
highly demandingCompetitors are taking significant actions to address
changing market requirements
CONFIDENTIALPage 19 | May 2015 | ICPA Conference | Canada Post
Amazon has a dominant lead in developing its
ecosystem of solutions and could expand into delivery
Business Model
MarketingWebshop Services
Market places
DeliveryPaymentCustomer
ServiceReturns
Transport
Warehousing
Fulfillment
Amazon could expand its delivery capabilities through an Uber-like model
Contracted Delivery Now
Retail or Locker Network 1 Year
Warehouse Network 1-3 Years
Volume Density Required 1-3 Years
Amazon aims to own a complete ecosystem
CONFIDENTIALPage 20 | May 2015 | ICPA Conference | Canada Post
Post strategies must responds to these threats …..
Competitiveness Reduce cost base
Drive density and touch points
Invest in the Brand
InnovationConsumer control
Flexibility & visibility
Easy customer integration
IntegrationEnd-to-end solutions
Single view of the customer
Traditional
Last Mile
Platforms
eCommerce driving competitive threats
• Scale
• Experience, Loyalty
• Capability / service ecosystem
• Integrated Solutions
• Brand, Experience, Price
• Global Reach
• Speed, Experience
• Ship from store
• 1:1 services