Magazine article Marketing

Royal Mail Slashes Mailsort Charges

Magazine article Marketing

Royal Mail Slashes Mailsort Charges

Article excerpt

Royal Mail is slashing the price of its Mailsort products, saving marketers millions of pounds a year in direct marketing costs.

The decision comes as it prepares to appoint an Omnicom agency hub, led by Abbott Mead Vickers BBDO, to oversee an ambitious pounds 50m brand revival programme.

The beleaguered company is throwing down the gauntlet to rivals and other media owners by reducing price tariffs on Mailsort, which accounts for more than one-third of the 20 billion items mailed in the UK each year.

Royal Mail claims the cuts will save UK business as much as pounds 17m a year.

The price reductions, to be unveiled this week, represent an aggressive step by Royal Mail to encourage advertisers to put greater resources into their DM strategies, as it comes under pressure from entrants to the postal market.

Later this month, the company is expected to reveal it has managed to reduce its operating losses by one-third to about pounds 200m during the first year of chairman Allan Leighton's cost-cutting programme. …

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