Indian Post Office - Redefining Distribution*

Details

Case Code : CLSDM026
Publication date : 2005
Subject : Sales and Distribution
Industry : Utilities
Length : 04 Pages
Price : Rs. 100

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Key words:

Post Office, Distribution Channel, Postmen, Department of Posts (DOP), ATM, UTI Bank, ICICI, Western Union Money Transfer, Tie-Up, MoU, Financial Services, Reliance

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The widespread use of the telephone and the Internet resulted in a substantial loss of revenue for the postal department in India. The Department of Posts (DOP), in a bid to come out of losses, initiated the process of stocking and distributing both financial and non-financial products to customers, through its extensive distribution network. The caselet examines the emergence of post offices as alternative distribution centers for many companies. It also throws light on various products that are distributed through the post offices across India and discusses the benefits to the postal department.

Issues: » Importance of Post Office as an alternative distribution channel » Need for a transition in the work culture of Post Offices Introduction Chandrakant Rane, postmaster of a small village, sold newspapers and magazines outside his post office even during his normal duty hours. In his post office, he sold around two to three postal items per day, which left him with a lot of time to pursue additional activities. He received a salary of Rs 3000 per month at the post office that translated to Rs 30 per item on an average...

Questions for Discussion:

1. Many companies are entering into tie-ups with post offices in India. What do you think are the reasons behind such partnerships?

2. Post offices are all set to become an important entity to many companies, especially in rural markets. In this situation, discuss the steps that post offices should take to cope with the increasing responsibilities and to render effective services to customers.