® 2011 Global Shipping Targeting New Business PM Training.

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Presentation transcript:

® 2011 Global Shipping Targeting New Business PM Training

2 Global Shipping Market Opportunity The global economy has grown over 42% in the last 10 years 95% of world’s population and two thirds of the world’s purchasing power is located outside the U.S. Currently only 1% of U.S. businesses Export. U.S. exports are expected to grow by double digits each year for next several years At 113% growth 2004 – 2009, Mail Order Catalogs/ E-Tailers are the fastest growing segment Most of this volume is B-2-C lightweight items

3 Transit times and scanning to individual countries are two key concerns of customers Specifically the top 40 destinations where over 80% of our total international volume is shipped to. EMI and PMI have seen significant positive trends in visibility and scanning percentages EMI currently in the high 90’s up from the mid 70’s to low 80’s only a few years prior PMI currently scanned in the low to mid 90’s up from 25-40% only 2 years ago

Provider1 - 3 Days3 - 5 Days6+ Days Global Express Guaranteed (1-3 Days) Express Mail International (3-5 Days) Priority Mail International (6 -10 Days) InternationalPriority (1-2 Days) InternationalEconomy (3-5 Days) N/A Worldwide Saver (1-2 Days) Worldwide Expedited (3-5 Days) N/A Worldwide Express (# of days vary) N/AN/A Competitive Positioning

5 Global Express Guaranteed Value: GXG is the best value option in the market to send my urgent international shipments Know the price up-front and save even more online Best price for SMEs and consumers in the marketplace for premium level service Urgency: Door to door delivery in 1-3 days around the world Certainty: Money-back guarantee assures timely delivery Visibility & Security: Transparent end-to-end service performance to all destinations Now Available as a commercial shipping option. (GSS and Shipping Assistant)

6 USPS GXG Retail Rates Vs. FedEx International Priority Service's Commercial Rates to England lbs. Commercial Retail USPS Savings Fuel 15.5% Tot. USPS Savings FedEx PriorityGXG 1$70.26 $66.50 $3.76 $10.89 $ $82.08 $75.95 $6.13 $12.72 $ $96.38 $85.40 $10.98 $14.94 $ $ $94.85 $15.21 $17.06 $ $ $ $18.19 $18.99 $ $ $ $15.90 $20.10 $ $ $ $13.91 $21.25 $ $ $ $11.29 $22.31 $ $ $ $10.87 $23.71 $ $ $ $9.84 $25.02 $ $ $ $6.92 $25.41 $ $ $ $2.38 $25.55 $ $ $ $13.06 $28.05 $ $ $ $15.69 $29.30 $ $ $ $16.76 $30.31 $ $ $ $18.16 $31.37 $ $ $ $20.17 $32.53 $ $ $ $21.80 $33.63 $ $ $ $23.22 $34.69 $ $ $ $25.01 $35.81 $60.82

7 Preferred expedited 3-5 day business delivery to over 190 countries worldwide Date-certain delivery with a Money back guarantee to top global markets - Australia, China, France, Great Britain and Northern Ireland, Hong Kong, Japan, Republic of Korea ( South Korea) Singapore and Spain Companies can leverage the Postal Service’s trusted and secure brand while decreasing their costs. Reduce complexity in shipping preparing customs documents Discount requirements No surcharges or net minimums With Flat Rate envelope and NEW Flat Rate Legal envelope no need to calculate postage I know the full price up front, and can save even more when I pay online For just a few dollars more, I get Express Mail International’s reliability world- wide End-to-end visibility The security of built in $100 Insurance. Free return of undeliverable shipments Express Mail International

8 Commercial USPS EMI vs. Commercial FedEx International Economy to England lbs. FedEx Int'l economy EMI USPS Savings Fuel 15.5% Tot. USPS Savings 1$63.99 $32.66 $31.33 $9.92 $ $77.63 $37.67 $39.96 $12.03 $ $90.06 $42.69 $47.37 $13.96 $ $ $47.70 $54.20 $15.79 $ $ $53.08 $60.34 $17.58 $ $ $58.47 $65.57 $19.23 $ $ $63.85 $68.07 $20.45 $ $ $69.23 $69.06 $21.43 $ $ $74.61 $67.17 $21.98 $ $ $79.99 $62.58 $22.10 $ $ $85.38 $72.93 $24.54 $ $ $90.76 $71.66 $25.18 $ $ $96.14 $75.51 $26.61 $ $ $ $72.60 $26.99 $ $ $ $69.67 $27.37 $ $ $ $79.20 $29.71 $ $ $ $76.51 $30.16 $ $ $ $71.24 $30.20 $ $ $ $66.30 $30.30 $ $ $ $61.03 $30.34 $91.37

9 Only product of its kind 6-10 day priority service -in the international shipping market Parcel Shipments with Built in indemnity coverage and insurance options gives access to information and proof of delivery at prices well below the competition New suite of flat rate package options which provides convenience and choice to the consumer while providing a simpler way to ship. Accurately project and manage shipping costs No weighing necessary Customers save time and money too by going online Simplified customs completion 5% discount Priority Mail International

10 USPS Expands Shipping Zones from Price groups for Non Flat Rate Express Mail International and Priority Mail International shipments have been expanded from zones for more accurate pricing based on our costs. USPS Expands Zones To Provide Lower Costs To Areas Where We Have The Most Opportunity

® Express Mail International – New Express Mail International Legal Size Envelope added. Both flat rate envelope options offer one flat rate for Canada and one for all other countries. Priority Mail International - Five new flat rate envelopes and two new flat rate boxes were added. All are priced at the same flat rate as the original Priority Mail International Small Flat Rate Envelope. These items fall into the letter class category internationally and have a weight limit of four pounds. Pricing is simple: One price to Canada and Mexico, and One price for all other countries. Flat Rate Shipping

12 Truth behind the discounts  Regardless of the discount offered, Other integrators never ship below the Net Minimum price and Surcharges are added on after the discounts and based on pre-discounted prices.

13 So Let’s Break It Down…. $ % $49.41 $97.95 $75.70 $75.70 $25.53 $1.25 $28.02 $0.00 $ $75.70 $ /week $261, % September 2011 Fuel rate is 15.5%. Prices used are current 2011 prices (zone lbs)

14 Leveraging Our Advantages… Online Convenience Pay for postage and receive savings Print customs forms and postage statements Track shipments Other Benefits Eco-friendly (and Free) packaging Free Package Pick-Up Volume letter options Customized agreements and volume discounts

15 You are the key to success … You are critical to the USPS Success No one has the reach into SMBs that you do Look for businesses that already have an online etail operation Explain to them the positives about expanding their customer base Listen to their needs and fit the Int’l Service that will best meet them Explain to them the discount opportunities Once you peak their interest and they begin thinking about the possibility of shipping internationally or expanding their international business: Contact your local Business Solution Specialist (BSS) If you need additional support, we are here to support you!

16 To Determine How To Best Assist The Customer 1) Who currently handles your shipping? 2) Do you currently Ship Internationally? If yes, continue to Question 3. If No, skip to the bottom of the page* 3) How much do you ship? And to which countries? Get an approximate dollar amount for the year and names of the countries they ship to 4) How do you pay for your shipping? If they use PC Postage, manifest, or other option. 5) Ask if they are interested in expanding their business to new international markets? If yes, Go on to question 6. If No, then skip to the end * 6) What Percentage of your products are produced in the U.S.? This will help the BSS in knowing what type of assistance they will be able to offer the customer * If No, explain that they are leaving 95% of their possible customer base without access to their goods. Then ask questions 4 through 6 to see if they qualify for the NMEI program.

17 Qtr 3&4 FY11: Retail POP signage campaign Qtr 1 FY12: Global Targeted Business Connect Contest Global Grow Your Business Days Re-Launch of Grow Global Teams Nation-Wide Global Targeted Customer Connect / Rural Reach Retail Holiday POP signage Campaign International Marketing Promotional Campaigns for 2011

18 Retail Associates Need Your knowledge Retail Associates can assist you in identifying customers for International Business Connect Activities Most have very limited knowledge of selling International Services They are key to making the contest successful, and increasing your office’s international retail revenue: Give them clues to Help them to identify potential customers Share with them the International tools Review with clerks the value of each Int’l service. Before Q4 : Hold a training meeting with your clerks Speak to them about the importance of selling international services Meet with your local BSS and find out what he can do to assist you

19

20 Pub 613 (Launched March 2010) Will be in a counter card with the Q3 POP kit

21 New collateral materials are available on Sales Force Resource (SFR) through the Material Order Site

22 Ask probing questions to identify potential customers Exploit USPS advantages – Price, improved tracking capabilities, Options, Customer Service Familiarize yourself with the core international services You can’t teach what you don’t know yourself Get comfortable talking to your customers and bringing up international options Educate the customer about the basics of our services Let’s work together to create solutions Knowledge is Power

23 Questions ??? Together we can make a difference!