1. 14/02/20141.1.1 Presentation on Marketing of Money Transfer in India Post

2. 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 – International 14/02/20141.1.2

3. Various Modes of Money Transfer 14/02/20141.1.3

4. 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 14/02/20141.1.4 Various Modes of Money Transfer

5. Money Transfer Channels 14/02/20141.1.5

6. Money Transfer Channels 1.Banking Channels  NEFT, RTGS, Credit /Debit Cards, IMPS, Cheques/Drafts/ATM 2.Non Banking Channels  MO, IPO, IMO,IMTS, MO Videsh, IFS MO 3.Informal Channels  A Broker or middleman would transfer cash to another location through his network for a fee 14/02/20141.1.6

7. Competition Scenario 14/02/20141.1.7

8. Market Share (Domestic) Without Bank A/c – To obtain and encash DD of Value below Rs.20000, a bank a/c is not required. This service from bank competes with India Post offerings. – It is not possible to calculate the share in this segment because, banks/RBI do not have separate data on DD encashment of less than Rs.20000 – Informal transfer are not documented 14/02/20141.1.8

9. Market Share (Domestic) With Bank Account – NEFT, Cheques/drafts, Cards, ATMs and Mobile banking would form competition to India Post – RTGS is used only for high value service – Cheque is the largest means of money transfer in India constituting more than 90% of the market – India Post’s Money order services forms around 0.1% 14/02/20141.1.9

10. Market Share(Domestic) 14/02/20141.1.10

11. 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 14/02/20141.1.11

12. 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% 14/02/20141.1.12 Market Share (International)

13. Customer Scenario Types of services availed at Pos 14/02/20141.1.13

14. Occupation profile of Money Transfer Users 14/02/20141.1.14 Customer Scenario

15. The 4 Ps of Marketing are Product Place Pricing Promotion 14/02/20141.1.15

16. Product In Domestic Money transfer the key would be – Switch to electronic mode – Increase the speed of delivery 14/02/20141.1.16

17. Expansion of instant domestic money order transfer to all Post Offices It would reduce the problem of long queues Timing of select high volume branches can be increased from 9 AM to 9 PM especially for international remittance The division to take necessary steps 14/02/20141.1.17 Place

18. 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 14/02/20141.1.18 Promotion

19. 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 14/02/20141.1.19 Price

20. MONEY REMITTANCE SERVICES Discussion on Self Study Material 14/02/201420

21. ACTIVITY Make 5 groups of 6 trainees and allot following 5 Money remittance services for analysis – Group1 eMO – Group2 iMO – Group3 MMT – Group4 MOVidesh – Group5 IFS MO Ask Trainees to list-out what are all the strengths & weakness of the service (SWOT analysis) Get the suggestions/innovative ideas from the trainees for improvisation of the service 14/02/20141.1.21

22. Reasons for not using India Post’s MT 14/02/20141.1.22

23. MEASUREMENT PHILOSOPHY 14/02/201423

24. Business Success & Customer Loyalty Business Success Loyalty Perceptions & Attitudes Transactions & Experiences 14/02/20141.1.24

25. 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 14/02/20141.1.25

26. STRATEGIC PRIORITY & EXPECTATION OF CUSTOMERS 14/02/201426

27. 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 14/02/20141.1.27

28. Post Office – Cleanliness of the Post Office – Queue management at the Post Office – Adequate staff at the Post Office – Convenience of Timings – Availability of forms/slips/envelopes/brochures etc – Ease of finding a branch – Availability of basic facilities like drinking water 14/02/20141.1.28 Critical Improvement Areas

29. 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 14/02/20141.1.29 Critical Improvement Areas

30. 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” 14/02/20141.1.30

31. CONCLUSION & RECOMMENDATIONS 14/02/201431

32. 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 14/02/20141.1.32

33. 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 14/02/20141.1.33

34. DOMESTIC MONEY REMITTANCES SERVICE MARKETING 14/02/201434

35. Opportunities in Domestic Remittances Strong existing demand and volume: A research shows migrants sends monthly amounts between Rs.1,000 to Rs.3,000 14/02/20141.1.35 Source: MicroSave research on remittances in India (Punjab-Bihar/UP corridor): http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh

36. Current Remittance Channel Increasingly, migrants use bank accounts to transfer money home. Increasing financial inclusion changing the face of informal channels. Tappawalas (in orissa) and courier services use bank accounts to move money between places giving rise to bank couriers. However, high levels of dissatisfaction exists with current channels of usage including POs 14/02/20141.1.36

37. Current Remittance Channels 14/02/20141.1.37 Source: MicroSave research on remittances in India (Punjab-Bihar/UP and Gujarat/Bihar/Orissa corridor): http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh http://www.microsave.org/research_paper/understanding-remittance-networks-in-gujarat-orissa-and-bihar

38. Remittance Channel Preferences 14/02/20141.1.38 Remittance Delivery ChannelValue PropositionWeakness BanksInstant Delivery, Safe, CheapTime-consuming, Difficult for recipient, Far Away Bank CourierInstant Delivery, SafeNot in own bank a/c Hawala/ TappawallaDoorstep Delivery, ConvenientHigh Cost, Unsafe Carried by friend/ selfTrust, doorstep deliveryCan take time, robbery However, this number hides the large hindrances remitters face in using banks including: Long lines and lengthy processing time Difficulty of opening bank account Inconvenience Lack of doorstep delivery Not surprisingly, formal and informal have completely opposite strengths and weaknesses

39. Current Status of Domestic Remittance Formal and informal channels of remittance co- exist – Formal: bank, post office – Informal: courier/hawala, friend, self, and tappawala (for Orissa only) Good business opportunity – Close to 70% remitters send up to Rs.5,000 per month No single channel matches remitter/recipient requirements – Bank, the most trusted channel does not provide doorstep delivery, high processing time – Courier, which delivers money at the doorstep, charges high fees and is not safe – Post office, which delivers money at doorstep, delays delivery, expensive 14/02/20141.1.39

40. Customer’s requirement Customers are not willing to wait in long bank queues They also appreciate more flexible hours and better service than bank branches currently offer. Customers willing to pay more than bank charges for better service Lesser procedures/documentation 14/02/20141.1.40

41. Can Post Offices bridge the Gap? Post Office’s key strength – Doorstep delivery, particularly important for recipients – Cheaper services example iMO, MMT etc – Customer need not have any account with PO – Easy access – Trust and safety But delay in delivery has to be reduced and experience and repeated transactions needed to build trust. 14/02/20141.1.41

42. How Post Office can fill this gap & what is their role in it? 14/02/20141.1.42 Classroom Discussion

43. Welcoming steps Post Offices wearing a new look due to implementation of project arrow Welcoming atmosphere in all the POs, thanks to National Cleanliness Drive Introduction of Mobile Money Transfer to suit the customer requirements for faster remittances Combined money remittance booking form for easy documentation & delivery information in mobile for iMO &MMT, Mobile alerts track & trace for others Introduction of state of art technologies through India Post 2012 projects including Rural ICT 14/02/20141.1.43

44. What’s my Role? What should I do? How I can Help Gain in-depth knowledge of all the products and services Inculcate good behavioral skills & good customer service techniques Judge the requirement of the customer and suggest suitable remittance service Briefly explain the process of the service and required documents from both remitter and receiver Keep stock of required forms 14/02/20141.1.44

45. Assist the customers in documentation Configure India Post web address in day’s message in MPCM counter receipts Enter the correct PIN Code & other details including Mobile Number while booking Enlighten customer about Track and Trace and other requirement Place all the booking form & other documents before supervisor for immediate authorization 14/02/20141.1.45 What’s my Role? What should I do? How I can Help

46. If you are in a delivery office, process the transactions as early as possible Every day login into website and keep your credentials active Have a list of near-by offices offering different kinds of services and suggest it to customer in exigencies Take print out of all the eMOs received in your office, and arrange for same day delivery 14/02/20141.1.46 What’s my Role? What should I do? How I can Help

47. Take returns in the Postman module with proper remarks and submit the account Update information into the central server by giving call through communication modules regularly If you are in RD counter, give information to Group Leaders about Money remittance service and ask them to share the same with others If you are in-charge of a office, make proper arrangement of funds for early pay-outs Look for better queue management 14/02/20141.1.47 What’s my Role? What should I do? How I can Help

48. INTERNATIONAL MONEY REMITTANCES SERVICE MARKETING 14/02/201448

49. International Remittances Market 14/02/20141.1.49 India is the largest recipient of international remittances in the world. UAE – India [25.09 %],US – India [21.82%], UK – India [7.45%] are 3 among the top 10 global remittance corridors. [ Source : Boyars-Intrinsic-Research-Report-Western-Union]

50. Opportunity Commercial banks have only a 5% share of the global remittance market, because it’s not considered to be part of traditional core banking business. In India though there is over 99000+ bank branch network, only 36,000+ inhabited areas have a bank branch out of the 600,000 inhabited areas in the country. The remittance services offered by the banks are not geared toward cash payouts to the recipient. Here Post Office is having an opportunity 14/02/20141.1.50

51. Remittance Service Providers The remittance market in India is serviced by – Post Offices – Commercial banks & Co-Operative banks – Non-bank Money Transfer Operators (MTOs) – Foreign Exchange Bureaus & – Wide variety of commercial entities [incl. Internet] (acting as agents and subagents) 14/02/20141.1.51

52. Global Remittance Market Today, one in five dollars remitted globally passes either through – Western Union, which owns 16% of the market or – MoneyGram, with 4% market share 14/02/20141.1.52

53. Status of International Remittance Currently international remittance market for cash payouts in India is captured by – Western Union[WU] – MoneyGram[MG] India is the largest recipient of international remittances in the world (World Bank Report) In India both the Money Transfer Operators [WU & MG] are providing these services through its agents 14/02/20141.1.53

54. In India [World Bank Report] – WU is leader in this Money Transfer Service Scheme – It has more than 50,000 agent locations in India – Operates in more than 7,000 cities and towns & – Works with more than 30 leading banks. India Post is among the single largest agents of WU. Around 8,500 post offices offer WU services [World Bank Report]. Western Union’s remittance through India Post – In FY 2012-13, Rs 1482 crores to 592311 customers – In FY 2013-14, Rs 3473 crores to 1398763 customers 14/02/20141.1.54 Status of International Remittance

55. Low Cost of remittance by POs The cost of remittances by commercial banks is 12.53 % – Significantly higher than the global average at 8.36 % – with MTOs cost of remittances is 6.69 % – Where as with post offices it’s only 5.93 % 14/02/20141.1.55

56. What’s my role? Keep your login credentials active Help & assist customers in documentation Remember Code: 8 digits for MG, 9 digits for IFS, 10 digits for WUMT, 26 digits for France IFS Keep a list of loyal customers Keep Help-line numbers for emergencies Keep a list of near-by Post Offices offering the same services & inform the same to customers in case if you are not able to serve Process the transactions as early as possible Arrange cash for early pay-outs 14/02/20141.1.56

57. STRATEGY OF MONEY REMITTANCE MARKETING 14/02/201457

58. Strategy of Marketing Money Remittances Employees should have knowledge of Money remittance services offered by the Department Create Product awareness w.r.t. MMT, iMO among general public by Word of Mouth publicity by our staff members Network of Postman be used for collection of remittance by the senders 14/02/20141.1.58

59. Extension of counter hours from 9am to 9 pm especially in case of IMTs where other agents are operating Expansion of services like iMO and MMTs in all Post Offices Monitoring of Money remittances for faster remittances 14/02/20141.1.59 Strategy of Marketing Money Remittances

60. Use of combined MO remittance form in case of domestic remittance for easy documentation Target migrated population who send money for their family maintenance regularly and special arrangement can be made for collection & remittance of the amount 14/02/20141.1.60 Strategy of Marketing Money Remittances

61. Post Office premises, Mail vans, Passbooks, MPCM receipts can be used for advertising our own product instead of promoting other’s product Use of Direct Post, mouth publicity through Postman Staff, PLI/RPLI melas, Philately exhibition etc Effective use of Social Media for promoting India Post’s products Better Infrastructure like seating arrangement, writing desk, Drinking water, Fan, Lighting for customers and cleanliness in POs 14/02/20141.1.61 Strategy of Marketing Money Remittances

62. Use of MPKBY agents, SAS agents & others for promoting India Post’s products Advertisement in FM Radios, TV Channels, Local news paper, Cable TVs Standing Instruction facility for regular money remittances to ease the documentation & to save valuable customer time Better queue management and faster arrangement of money for payments 14/02/20141.1.62 Strategy of Marketing Money Remittances

63. Use Posters, banners, Hoardings & Open kiosks/information desks in melas & jathras like during Dasara in mysore, kodogu- Bramhotsavam in Tirupathi (AP), During Onam festival in kerala, Kumba melas, Durga pendals, Puri rathyathra, Republic Day parade in New Delhi etc Arrange for distribution of pamphlets and direct posts Canvas for the products & services in schools, colleges, apartments, State & Central government offices, PSUs, Training Centers, shopping complex, shopping Malls, banks, townships, bus stands, railway stations Target migrated populations who are sending amounts to their dependents like workers in big construction locations/projects, casual laborers in factories, small, medium and large scale establishments, manufacturing industries 14/02/20141.1.63

64. Activity The trainees to be divided in to 6 groups and to prepare marketing strategy for the following products MO including eMO iMO MMTS MO Videsh WUIMT Moneygram 14/02/20141.1.64

65. Continued The strategy should contain Prerequisites at the PO(HR, Infrastructure) Identification of the market/customers Promotion of the product Analysis of the impact of the marketing effort 14/02/20141.1.65

66. Activity Make 10 groups of 3 trainees each and ask them prepare some – marketing posters – advertisements – role plays – slogans with catchy words – poems etc. 14/02/20141.1.66

67. MMT Advertisement by BSNL in its website 14/02/201467

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