| Abstract | New companies, new customers and new technologies are all combining to transform the
traditional mail order into an exciting shopping experience. The home shopping market
worldwide, currently estimated to be worth 100 billion pounds, is set vigorous growth.
The UK home shopping market predicted to grow by as much as 10% of retail sales
within ten years is estimated to be worth in excess of 7.5 billion pounds. Established home
shopping organizations and new entrants alike need to respond effectively in order to capitalize
upon this exciting potential.
The home shopping industry in UK is dominated by five big dinosaurs they hold
approximately 60% of the market share. But the landscape is constantly changing, increasing
competition, rising customer expectations, shifting demographics, the impact of technology and
emerging markets, all combine to present new challenges and opportunities for the home
shopping industry.
The home shopping customer is more demanding than ever before. Price, value,
convenience, speed and the availability of aspirational brands are key requirements of today's
home shopper. Their lifestyle and employment patterns are changing therefore they require the
ability to respond to companies in the manner and at a time that best suits them.
Understanding and enabling customers preferred response option is crucial to success.
The loyalty of existing customers will be determined by how the company responds to their
changing needs. Speed of delivery is a key focus, and is also a primary concern for many
customers, which make them choose one home shopping company over another.
Post Office Group is uniquely positioned to meet the needs of the home shopping
industry. Its services encompass the complete supply chain for the home shopping industry. In
this research the focus is on Royal Mail Streamline which is one of the strategic business unit of
Post Office group.
Methodology has been developed to access its current competitive position and to
improve it for the coming deregulated Postal industry. Selected products have been audited by
developing Flow Charts, SIMALTO sheets and by conducting customer survey.
Customers have shown a high level of dissatisfaction mainly with, pricing methodology,
discount structure, credit policy, delivery, collection and design restrictions. Gaps have been
identified for the selected products.
While keeping in view the findings and latest trends in the home shopping industry
recommendations have been made to Royal Mail Streamline to improve its position. Main
recommendations are re-engineered role for RMS, buying process influence model, continuous
improvement model, band pricing, change in collection timings and relaxation in credit policy. |