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USPS Case Analysis

Problem Statement
USPS was meeting to review the results of a tracking study that traced the effects of the “Products and Services” campaign on consumer attitudes toward USPS. The key issue is if the “Products and Services” theme and music would contribute to the 1989 Express Mail advertising campaign’s success. USPS also needs to address the general public’s perception of their reliability.

Situational Analysis

Company: USPS
Strengths – access to entire network of mail distribution
Weaknesses – consumers thought that USPS was unreliable, no volume discounts
Product – Overnight Delivery Service (ONDS), guaranteed morning delivery, drop ship and reship service, weekend/holiday delivery at no extra charge, delivery to post office boxes
Price - 8 oz letter costs $8.75, on call pick up for incremental charge of $4 per stop
Promotion – 1988 advertising cost $5.5million

Competition | Fed Ex | UPS | Emery-Purolator | Airborne | Product | Overnight Delivery Service (ONDS), warehousing and inventory management in conjunction with expedited delivery | Overnight Delivery Service (ONDS), package tracking, guaranteed deliver, morning deliver | Air and ground delivery service | Overnight Delivery Service (ONDS), | Price | 8oz letter cost $10.50, Volume discounts to secure large share of business accounts, $3 drop off discount | 8 oz letter costs $8.50, No discount for volume shippers | unknown | ODNS rate for the government: $5 for the first pound. Offered large accounts exclusive carrier contracts using deep discounts | Place | Retail kiosks | Retail kiosks | unknown | unknown | Promotion | unknown | No advertisement prior to 1982, 1988 advertising costs $100 million | unknown | unknown |

There are two bases to segment the market. One basis is reliability/certainty versus price. The second basis is business size versus…...

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