Understanding Organization Through Service Analysis Marketing Essay


The difference between goods and services has become obscure. At present merely few things are present which qualify the same as pure merchandises or pure services. Most merchandises have elements of services and most services have characteristics of merchandises. The offering to the client is now a package of merchandises and services. Any organisation that has non awakened to this fact is in serious hazard today.

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The construct of services has now farther evolved into the construct of smart services. It is no longer plenty for a corporate organisation to offer services. It besides needs to supply ‘smart services ‘ to its clients ( Yong and Wilkinson, 1999 ) .

Smart services go beyond the sorts of upkeep and ascents that organisations combine with their merchandises. Smart services are provided through edifice intelligence into the merchandises and services. This intelligence is capable of making connectivity and consciousness. The construct of smart services is being besides used by strictly service organisation like Royal Mail UK -which is the topic of this service analysis essay- to make more value for their client ( Berry and Parasuraman, 1994 ; Clark and Johnston, 2007 ) .

The seven Ps of service selling are ( Gronroos, 1994 ) :

Product ( service ) ;

Monetary value ;

Topographic point ;

Promotion ;

Peoples ;

Physical Infrastructure ; and


The merchandise refers to the existent service provided by the organisation. The merchandise can be such that can be combine tangibleness and intangibleness. It refers to the offering of the organisation.

The monetary value is the value charged by the organisation for supplying its service offering.

Promotion refers to the integrated communications mix that the organisation is utilizing for advancing and publicizing its services ( Zeithaml, Berry and Parasuraman, 1988 ) .

Topographic point signifies the bringing of services. The bringing must be such that it increases the convenience of the clients and creates more value for them.

Peoples are the most of import constituent of services. They interact with the clients and straight act upon the quality of service. Human resource issues are critical in service design.

Physical substructure refers to the physical installations that the service uses.

Procedures are the elaborate methods through which the organisation is making value for its clients by presenting them the needed services. Processes refer to the whole scope of activities designed with the purpose to the bringing of services.

The operations direction in a service organisation needs to concentrate on the above seven elements that play an of import function in the concluding rescue of services to the clients of the organisation. The ultimate purpose of any operations direction exercising is to make a symbiotic bond between the organisation and its clients so that maximal value is created for both of them ( Clegg, 1990 ) .

The cardinal issues in the operations direction of service organisations are ( Garvin, 1987 ; Bell, 2008 ) :

Service design ;

Service Process choice and planning ;

Facility location and layout ;

Service quality ; and

Cost of the service.

Most service organisations can be analyzed on the above parametric quantities.


Royal Mail is the national postal service in the United Kingdom. Royal Mail Holdings Plc has ownership of Royal Mail Group Limited. Royal mail group operates the trade names Royal Mail ( for UK letters ) , Parcelforce Worldwide ( for UK packages ) and General logistics Limited. Another wholly owned subordinate of Royal Mail is the Post office Limited which offers respondent cheques ( Royal Mail Group, 2010 at www.royalmailgroup.com/portal/rmg/content1? catId=23200554 & A ; mediaId=23700541 ) .

Royal Mail is accountable for world-wide mail aggregation and distribution in United Kingdom. The whole of United Kingdom is covered for one-price-goes-anywhere cosmopolitan service. The letters are deposited in a station or wall box and so moved to a station office or set together in majority from concerns and offices.

The service scheme of royal mail letters is composed of the followers ( Collier, et. al. , 2002 ) :

Net income maximization by doing the client satisfied through betterment and effectivity ;

Delivery of market taking quality of service ;

To be the United Kingdom ‘s lowest cost operator by progressing in an updated environment to accomplish the first-class end product ;

To do the alteration happen through affianced, flexible and ready for action paid work force.


Heskett ( 1986 ) has defined service construct as the attack in which the concern makes ( gets ) its services professed by its patronage, work force, stockholders and loaners. It is the trade proposal of the service organisation. These are the necessities of the service bundle. Collier ( 1994 ) calls these as the “ client benefit bundle ” , i.e. the effects that offer advantage and value to the clients of the organisation ( Baker, and Clark, 2004 ) .

Lovelock and Wright ( 1999 ) has defined the service construct as the “ 8Ps ” of marketing which include the elements of the service merchandise, procedure, topographic point, physical grounds, people, productiveness, quality, monetary value and publicity ( Brown, 2001 ) .

Edvardsson and Olsson ( 1996 ) refers the service construct as the sample for service and depict it as “ elaborate description of what is to be done for the client ( what needs and wants are to be satisfied ) and how this is to be achieved ” ( Dilworth, 1989 ) .

The service construct of Royal Mail UK purposes at supplying all the mail solutions to the occupants of UK. These mail solutions besides include parcel services. These package services have recently emerged as the most of import service that Royal Mail provides to its clients. With the increasing in online retailing, package services are going progressively important ( Bassett, 1992 ) .

The clients of Royal Mail are both personal clients and concern clients. Royal mail group has besides diversified into supplying fiscal solutions to its clients. It has now about more than 7 million fiscal clients. Royal Mail has besides evolved its mail services with altering times and engineering.

Every twenty-four hours the forces of Royal Mail UK collect points directly from its 12000 station office subdivisions and 115,000 station boxes ( Hooper et. al. , 2008 ) . These points so travel by the web of Royal Mail ‘s more than 60 mail centres, 8 regional bringing centres and about 1400 bringing offices. At last, its fleet of 30000 ruddy vehicles delivers the mails to their concluding finish ( Hooper et. al. , 2008 ) .

Post codifications are used by Royal mail to place the finish of points to be mailed. This increases the efficiency of its mail sorting procedure and besides increases the velocity of bringing. Deliveries are made by Royal Mail on all the six working hebdomad yearss. Deliveries are normally made by around tiffin clip. Rural bringings are completed by 3 p.m.

Royal Mail is besides supplying its concern clients with a assortment of informations tools related to the mails. These informations tools aim at increasing the selling public presentation of the concern clients of Royal Mail. They besides serve up to better the efficaciousness of mail as an interaction medium. The concern clients are facilitated to accomplish improved response rates and an increased return on their investings through the well-organized record continuation ( database ) and sound client contact direction of the Royal Mail ( Brown, 2005 ) .

Another strategic and most of import country for the hereafter of Royal Mail is the on-line shopping. Online peddling is expected to achieve 30 % of the retail gross revenues of Royal Mail UK by the twelvemonth 2012 ( Royal Mail Group, 2010 at www.royalmailgroup.com/portal/rmg/content1? catId=23200554 & A ; mediaId=23700541 ) . During the Christmas of 2009, Royal Mail set a record of presenting 155 million points ordered online. This was about 15 million points more than those distributed by Royal Mail for the continuance of the Christmas of 2008. The usual points delivered by Royal Mail consist of books, pictures and DVDs. Bigger ticket points like vesture are besides deriving popularity. Delivery of vesture bought online is anticipated to describe for 10 % of the entire on-line gross revenues by 2012 ( Royal Mail Group, 2010 at www.royalmailgroup.com/portal/rmg/content1? catId=23200554 & A ; mediaId=23700541 ) .

Royal mail is doing an inward edge into tactical partnership with retail merchants to let them to take advantage of this new retailing channel. Furthermore, retail merchants are besides given with the option of the trade goods or points of the clients to the nearest or local station office subdivision for aggregation, doing it more convenient for the clients ( Schmenner, 1993 ) .

Royal Mail is besides dynamic in conniving and doing Britain ‘s casts and related merchandises to bask the anniversary occasions and important occasions. Royal Mail besides produces electronic casts and these electronic casts are utile in concerns for promotional intents. Customers can besides personalise the electronic casts with exposures of their pick. Royal Mail besides has a sweeping unit within itself that serves the clients who want to reach portion of the substructure linked with the Royal Mail Universal Service Obligation.

Post Office Ltd is besides a portion of the Royal Mail group which manages around 12000 subdivisions from corner to corner in the United Kingdom. This organic structure besides provides fiscal services and self-praises of more than 2 million clients ( Hooper et. al. , 2008 ) . It is besides supplying with insurance policies to the clients and has approximately 700,000 clients for place and auto insurance. It has installed about 2000 free to utilize ATM machines. Post Office Ltd is the taking provider of foreign currency in the UK with 25 % of the market portion. It issues around 1 million travel insurance policies every twelvemonth. It besides offers different value added services like recognition cards, money militias, finance progresss and entree of hard currency to more than 60 % of the debit/credit card owners in the United Kingdom. The station office limited is besides the biggest hard currency animal trainer ( supervisor ) in United Kingdom with more than GBP 90 billion passing through its custodies every twelvemonth ( Royal Mail Group, 2010 available at www.royalmailgroup.com/portal/rmg/content1? catId=23200554 & A ; mediaId=23700541 ) .

Parcelforce Worldwide is the express package concern of Royal Mail. It distributes to about 150,000 packages in a twenty-four hours and is an of import performing artist in the cutthroat, unchained, articulated express package market.

In Europe, General Logistics system is another package concern of Royal Mail. It has its base in Netherlands and controls more than 1 million packages in a twenty-four hours.

Equally far as the service construct of Royal Mail is concerned, the cardinal challenge it is confronting is the call off in the Government concern go throughing all the manner through the station office connexions. Almost ten old ages ago the greater portion of concerns carried across its counters were on behalf of authorities sections. However, the switch by the Government sections to paying pensions and benefits straight to bank histories has resulted in one-year losingss of GBP 400 million to Royal Mail Group ‘s entire net incomes ( Hooper et. al. , 2008 ) .

Royal Mail is in the procedure of retrieval of some of the lost grosss by ramifying out into fiscal services. However, authorities services still remain the cardinal portion of its service construct. In 2009 it signed a five twelvemonth contract with the Driver and Vehicle Licensing Agency ( DVLA ) understanding to supply a new individuality confirmation service. This service enables the vehicle drivers to regenerate their photo-card drive licences utilizing the latest, ace engineering ( Stead and Stead, 2004 ) .

The service construct of Royal Mail is spread outing and germinating every twenty-four hours to fulfill the altering demands of the clients. It has evolved its procedures and besides added new procedures to fulfill the changing demands and services of the clients.


The analysis of service bringing of Royal Mail has been done on the undermentioned parametric quantities ( Greasley, 1998 ; Eom, 2005 ) :

Service design ;

Service processes ; and

Service quality.

Service DESIGN

Heskett ‘s ( 1987 ) vision of scheme aspires at linking selling and operations mentality for service design. Service interior decorators have to find the demands and dispositions of the mark market and compare those with a suited operating scheme and bringing system ( Pullman, Verma and Goodale, 2001 ) .

Royal Mail ‘s service design relies on its extended physical substructure and organisational capital to present the services to its clients. Its nucleus competence lay in delivering of mails and pull offing station offices across United Kingdom. It has leveraged its nucleus competence to make dynamic capablenesss in package services and fiscal services. Both these service are in line with its corporate scheme ( Galloway, Azhashemi and Rowbotham, 2007 ; Ma, Choi and Ata, 2008 ) .

The operations scheme is based on a web of about 115,000 station boxes and 12000 station office subdivisions ( Hooper et. al. , 2008 ) . It operates a fleet of 30000 ruddy vehicles that deliver the mails to the concluding finishs. In the other portion of service bringing, for its general logistics system ( GLS ) , that grips more than one million packages in a twenty-four hours and has a web of 667 shops, 29 critical trans-shipment musca volitanss, 1700 long distance mobility new waves and 16000 bringing motor vehicles. Furthermore, the GLS has about 220,000 clients in 34 provinces across Europe ( Royal Mail Group, 2010 available at hypertext transfer protocol: //www.royalmailgroup.com/portal/rmg/content1? -catId=23200554 & A ; mediaId=23700541 ) .

Royal mail has besides improved and reengineered its service processes with altering demands of the clients. The entire on-line retailing now holds up to 20 % of its retail gross revenues.

Royal Mail relies to a great extent on its human resources for its service bringing. The human resources have the greatest impact on the service brush. Service brush may possibly be defined as the communicating linking the waiter and the served ( Bowen, Chase and Dasse, 2002 ) . The service brush three of Royal mail consists of the clients, contact forces and service organisation ( Royal Mail ) .

Royal Mail has been noticed many times at the Centre of a figure of work stoppages in its history for the ground of dissensions between the employees and the direction. This has interrupted the flow of its services and the service bringing a batch of times. These struggles and work stoppages negatively have an consequence on its service bringing and service quality ( Harvey, 2006 ) .


Royal Mail has reengineered many concern procedures to function its clients in the minimal possible clip. Post codifications are used to place the finish of an point to be delivered. This helps it to screen mail expeditiously and do faster bringing. Equally far as the distribution is concerned, Royal Mail is able to do bringings on all the on the job yearss of the hebdomad around lunchtime. Most of its clients are able to have their mail much earlier than this. It besides tries to finish its rural bringings by around 3 autopsy ( Schroeder, 1993 ) .

In 2009, the hosts of Top Gear TV show on BBC show James May and Richard Hammond had a conflict of race in resistance to the Royal Mail to present a missive. The presenters were in a Porsche Panamera. The Royal Mail missive still won the race by less than ten proceedingss ( Porsche Panamera V missive, 2010 at hypertext transfer protocol: //www.topgear.com/uk/videos/porsche-panamera-vs-letter-part-1 # commentsListTop ) .

Seasonably bringing is critical for the parcel service of Royal Mail. It uses 8 distribution centres and 1400 bringing offices to pull off its package bringing.

The service processes of Royal Mail are being continuously improved and up graded to better the client experience and cut down the bringing clip. It is doing investings in modern information engineering for this intent. It is besides using rules of thin production to its mail bringing services. This is aimed at bettering operations and increasing the profitableness of Royal Mail ( Aquilano, Chase and Davis, 2003 ; Bartolini and Gaspary, 2009 ) .

The service substructure of Royal Mail is immense to state the least. The aim of the direction of its service capacity is to offer the maximal degree of service handiness at the least possible costs.


Philip Crosby ( 1979 ) has defined quality as “ conformation to specifications. ” The service quality at Royal Mail has improved well over the old ages on the dorsum of a better scheme and improved procedures. However, there is still scope for betterment, particularly in the package bringing service. Delivery clip is an of import parametric quantity on which the service quality of Royal Mail will be judged. It needs to better on its bringing clip in the rural countries. Furthermore, the quality and characteristics of fiscal services excessively needs to be enhanced if Royal Mail wants to function its clients and maintain clasp of its effectivity.



Large service capacity and service substructure.

Service procedures of Royal Mail are hard and dearly-won to copy.


Poor quality of industrial dealingss. Strikes are frequent.

A history of doing losingss.


Large chances due to increase in on-line retailing. Merchandises sold through on-line retail have to be delivered by the likes of Royal Mail.

Large chances in the fiscal services division.


Formidable rivals in the package bringing and fiscal services concern.

Decrease in concern from authorities sections.

Decrease in the non-parcel mails due to the electronic mails.


The service design of Royal Mail has well improved over the old ages. It was because of these improved procedures that all the four group concerns of Royal Mail were able to post net incomes in 2008-09 for the first clip in two decennaries ( Royal Mail Holdings plc, at file transfer protocol: //ftp.royalmail.com/Downloads/public/ctf/rmg/200809RM-_Group_Accounts_May_2009.pdf ) .

The service processes need to be improved farther to better the service quality of its concern in footings of decrease of bringing clip in rural countries. Delivery clip besides needs to be improved in parcel bringing.

It is recommended that Royal Mail should do package bringing and bringing of merchandises sold through on-line retailing its chief focal point. These are the country where moneymaking chances lie in future. The nucleus competence and dynamic capablenesss guarantee that Royal Mail can function the demands of the clients in these countries.


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