items online. Online discounts are also available for Global Express Guaranteed items.

     Product redesign efforts in 2003 continued to focus on improving the value/cost relationship of the Postal Service's core products for the entire spectrum of postal customers. The overall objective of Product redesign is to add or modify product features to increase value and to change rate structures and preparation requirements to reduce combined mailer and postal costs. Initially developed by a broad range of mailing industry representatives in work groups sponsored by the Postal Service, many of the proposals will require the approval of the Postal Rate Commission (PRC).

     In 2003, market research was conducted to obtain mailer reaction to the proposal for shape-based First-Class Mail rates to provide customers incentives to convert lightweight flats to less-costly letters, and to do more worksharing on heavier flats. Results will be considered when First-Class Mail rates are developed for the next Omnibus Rate Case. Work also proceeded on implementing several proposals to take costs out of the system that do not require PRC approval. For Standard Mail service, the minimum 5-digit bundle size for flats likely to be processed on the AFSM 100 was raised as a mailer option to improve overall piece- and packagehandling efficiencies for flats. Proposals for co-palletization and co-bundling of Standard Mail, Periodicals, and Bound Printed Matter flats for greater processing efficiencies were developed and are planned to be implemented in 2004.

     Work also proceeded in 2003 on improving Periodicals address quality through an option that would apply a forwarding fee to each piece forwarded or returned, rather than averaging total Periodicals undeliverable as addressed costs across all Periodicals and recovering these costs through piece and pound rates.

     Global products require only the approval of the Executive Committee and do not require approval by the PRC. To continue the

strategy to simplify Postal Service Global Package Development, market research was conducted in 2003 to obtain mailer reaction to online postage payments and customs forms, a simplified product line, and a Global Express Mail flat rate envelope. A revenue neutral rate schedule is being developed for consideration based on incorporating the above initiatives, aligning global package rate groupings, ensuring cost coverage for each product and a number of other product enhancing initiatives. This rate schedule could be implemented in 2004.

     To capitalize on the growing customer segment of medium - to small-businesses, the Postal Service developed materials that focused on the needs of these business customers, including Simple Formulas, Simple Formulas (Spanish version), Simple Steps and MailTown, USA materials and the direct mail interactive compact disc. Additional materials were developed focusing on the delivery needs of this customer segment - Simple Shipping, Simple Shipping the interactive CD, Click-N-Ship brochure, and the Express Mail Corporate Account application.

     The following tools were developed to support the national sales force in pursuit of new customers:

• Feature and Benefit (FAB) sheets were created, which contain messaging from the customer's perspective, frequently asked questions, and customer quotes. The nine FAB sheets focused on First-Class Mail, Direct Mail, CONFIRM (marketing), CONFIRM (financial), Express Mail, Priority Mail, Addressing, Customized MarketMail, and Ride-Along services.
• A Customer Companion Web site was created which provides a convenient access point to view or search all the available sales support materials. The Customer Companion Web site is available to all employees without the need of a password.