A new product proposition for PostNL door-to-door print advertising

A new product proposition for PostNL door-to-door print advertising

Kool, S.J.

Mooij, S.C. (mentor)
Govers, P.C.M. (mentor)

Industrial Design Engineering

Product Innovation Management

Master of Science Strategic Product Design

2013-10-04

Clients of door-to-door print advertising are facing several trends that challenge their way of working. Due to the economic crisis clients have less money to spend on their marketing activities, which raises the need to spend their money more effectively. Also, consumers are becoming less sensitive to mass communication and are asking for personalisation of the marketing activities that they face. Therefore, clients are looking for ways to better reach their target group and to address these different consumer needs. The main objective of this graduation assignment, is to increase the probability of reaching the target group for the clients and to introduce a new door-to-door product which helps to achieve this objective. The new product should offer the clients the opportunity to better reach their consumers, more effectively and with less waste. For PostNL the product should create added value in order to keep their clients loyal in a competitive market by offering a wide product portfolio, that serves the different client needs. This report elaborates on the development of this new product and the accompanying product strategy. It was found that the probability of reaching the target group can be increased by decreasing the size of the distribution area. PostNL is currently distributing to selected zip code 4 areas, which are based on the first four numbers of a zip code (e.g. 2513). Several solutions were presented of which distribution by delivery round, the round that a mail deliverer walks, proved to be the most viable option for PostNL. This solution will decrease the distribution area from on average 1700 households to 200 households, which will increase the precision of a door-to-door distribution. An operational feasibility study was performed in order to determine what the impact would be on the door-to-door process when delivery round distribution would be introduced. Also, insights into the exact needs and wishes of the clients with regards to door-to-door print advertising were gained through qualitative client research. These two studies showed that delivery round distribution is a viable option to introduce, as the impact will be limited and a need for a new product, that increases the precision of a door-to-door distribution, is present amongst the current clients. The findings from these analyses were used to determine the exact product proposition and the accompanying product strategy. This resulted in the new product proposition, delivery round distribution. Delivery round distribution, is a distribution of door-to-door print advertising to selected delivery rounds and is relevant when combined with demographic segmentation. Two main benefits will be offered to the clients: 1. Effective distribution 2. Lower costs The new product proposition provides added value to the current clients as it increases the probability of reaching the target group against lower costs. For PostNL the new product can help to attract new clients and maintain their current clients, by offering a wide product portfolio which serves the different needs of the clients. The accompanying product strategy shows that delivery round distribution only is relevant for clients that distribute between 50.000 and 2 million door-to-door folders per distribution and that have defined a high or medium specific target group. As different client types were distinguished from the qualitative client research, the further strategy for each client type is described, showing that the client types require a different approach. Two tools were developed, in order to provide the clients with the most relevant product advice. A roadmap was presented as a basis for the further steps that need to be taken in order to introduce the new product and the accompanying product strategy.

PostNL
product strategy
new product proposition
door-to-door print advertising

http://resolver.tudelft.nl/uuid:07102e74-cc4f-4855-b2f5-ffe24eca3457

Campus only

Student theses

master thesis

(c) 2013 Kool, S.J.