e0c28ca816d63b56b7273b524f49688c.ppt
- Количество слайдов: 24
B 2 C International – Current possibilities for DM-based distance selling Direct Marketing Conference – Budapest, 9 th Nov. 2006.
International Business Unit – at a glance The International Business Unit has been created in the year 2004 as a business unit of the Hungarian Post Office Ltd. and is responsible for all international inbound and outbound mail activities in Hungary and abroad 40 Million pieces of mail handled in 2004 375 staff members Turnover of 35 Million EUR in 2004 REIMS membership since January 2005 Continuing growth by Partners abroad Proactive sales activity Presented at the 1 st DM-conference 2005, Budapest
Increased demand for targeting of customers WW I Production era "A good product will sell itself!" WW II Sales era "Make them buy!" Today Marketing era "The customer is king. : Find a need and fill it!" Relationship era „Must know the Customer!" Direct Mail : key in developing relationship Source; Mc. Kinsey analysis
Goals of Magyar Posta’s International Business Unit GOALS : To promote the growth of Direct Mail in Hungary To increase the Direct Mail participation in the Advertising Market To increase the contribution of Direct Mail to the Postal Business To offer complete and integrated service solutions
4 modules (M 4) for developing DM activity Modul 1 Development of DM products -Unaddressed DM -Addressed DM Modul 2 Development of distribution logistics for DM - Direct Entry (bilateral agreements) - Co-operation agreements (sales & distribution channels) Modul 3 Development of inbound DM - Sales cooperations - Direct sales (mail order companies) 2005 - 2006 Modul 4 Development of outbound DM - Direct Sales - CEE Competence Center (international mail & DM ) - Alternative sales & distribution channels (local presence ) 2007
IDM (standard product) & DM (personalized product) Ø Minimum Volume requirements is 500 items per mail shot, per customer and per destination country Ø The items should have the same sender, weight dimension and content and being addressed to different receivers Ø There is no maximum volume required Ø There is no pre-sorting requirement Ø Maximum weight per item 2000 grams Deliverable into the REIMS-countries Based on the cooperation with Swiss Post International Magyar Posta is present with DM products in 17 countries among them USA !
Target markets of active Direct Entry service Magyar Posta Active in Planned in Cooperation with PPOs in AT, CZ, DE, IT, PL, SI, SK, Cooperation with SPI (Swiss Post International) in : AT, DE, CH, UK, USA and REIMS countries HR, RO, BG, Magyar Posta’s European target markets are beside AT, CH, DE and IT the Vishegrad-countries : CZ, PL, SI and SK, and new EU-candidates : RO + BG.
Extension of the existing Sales & Distribution Channels Letter International (TDs) Direct Access / Direct Entry PPOs Direct Entry Alternative
Criteria for DM companies Cross Border Mail Order Business Market size Level of economic wealth Economic growth rate Legal conditions Consumption habits Development of DM Reliably delivery service (cost and quality) Response rate Availability of addresses Reliable payment service
Market size (mio. inhabitants) and trend of urbanization An average of 60 -75% of the population is living in urban areas - excepting Romania, where the partition lies by 50% to 50%. COUNTRY Bulgaria POPULATION 7’ 700’ 000 Czech Republic 10’ 200’ 000 Hungary 10’ 000 Poland 38’ 200’ 000 Romania 21’ 700’ 000 Slovakia 5’ 400’ 000 Slovenia 1’ 990’ 000 TOTAL 95’ 190’ 000 source: Study from Price. Water. House. Cooper, 2005
Demographical surrounding While the habitants are getting averaged older, the birth-rate is slightly declining, which will lead to obsolescence in the near future. % of population 1998 2003 2008 0 – 14 years old 18. 5 % 16. 3 % 14. 6 % 15 – 64 years old 68. 1 % 69. 5 % 70. 6 % over 64 years old 13. 4 % 14. 2 % 14. 8 %
Socio-economical factors While the rural population still lives in traditional manner, the urban population are geared to the western European lifestyle. Wealth is mainly found in urban areas. On the country side people often can’t afford more than they need for a living.
Reliable payment service Mode of payment Money transfer in days Poland Cash on delivery 3 -5 Czech Republic Cash on delivery 2 -3 Hungary Cash on delivery 2 -3 Slovak Republic Cash on delivery 2 -3 Slovenia Cash on delivery 2 -3 Country
Reliably delivery service (cost and quality)
Availability of addresses Country Poland Czech Republic Hungary Slovak Republic Slovenia Data protection law YES YES YES Data protection law in Eastern Europe Business addresse s / Quality Private addresses / Quality Lifestyle addresses / Quality Very strict YES / good Strict YES / good YES / --- Very strict YES / good YES / bad YES / --- Strict YES / good YES / bad NO
Attitude toward unaddressed DM of the Hungarian population First place : Rate of acceptance of the unaddressed DM sent by different FMCGwarehouses is of 58 % Second place : Different advertisement newspapers have 52 % rate of acceptance. Source : Gfk Hungária
Rate of efficiency of the received unaddressed DM No. received No. read Activating for purchase Average FMCG warehouses (N=942) 10, 15 5, 57 1, 67 Advertisement (N=835) 5, 66 3, 12 0, 61 Other newspapers (N=579) 2, 09 1, 30 X Flyers (N=820) 7, 52 3, 72 0, 71 Efficiency received/ read Activating effect read/induced purchase Efficiency received/ induced purchase (%) (%) FMCG warehouses (N=942) 55% 30% 16% Advertisement newspapers (N=835) 55% 20% 11% Other newspapers (N=579) 62% X X Flyers (N=820) 49% 19% 9% newspapers source : Gfk Hungária 61% of the population has made a purchase induced by an unaddressed DM
Attitude toward addressed DM of the Hungarian population 48% ÁTLAG 48 % of the Hungarian Postai (N=476) 0% 27% E-mail (N=72) 0% 25% 38% 61% 2, 31 10% 18% 21% population is accepting DM placed in their postbox 1, 59 0% Why ? 32 % of the population SMS (N=88) 2% 0% NT/NV 36% 20% egyáltalán nem kedveli (1) 34% 40% 60% nem kedveli (2) 24% 80% kedveli (3) 1, 94 3% 100% nagyon kedveli (4) consider the DM as a source of information
Rate of efficiency of the received DM Efficiency received/ read Activating effect read/induced purchase Efficiency received/indu ced purchase (%) (%) Post (N=476) 69% 34% 24% E-mail (N=72) 31% 10% 3% SMS (N=88) 84% 16% 13% Source : Gfk Hungária, The most efficient Direct Mail is considered that delivered by received by post. 69% from receivers are reading the DM, and 34 % from those who have read the DM are purchasing the advertised service / product. rate of efficiency = 24 %
Target group for DM – Hungarian market potential According to the analysis, those who have bought something on influence of DM – the following target-group is overrepresented : Group of ages Target group Sex : female Age: 30 – 59 years old Education: medium to high Personal stance: open minded, westward orientated Living household of more than 3 persons Location: City and agglomeration Buying power: medium to high female 30 – 39 681 228 40 - 59 1 456312 Total 2 137 540 Source: Hungarian statistical Almanac, 2005 buying power Target population Hungary: 2 137 540 urban population westward traditional orientated rural population Market volume: 513 000 females (considering the 24 % response rate)
Advantages through International Direct Mail Faster entry to new markets. Lower market entry and market entry barriers (local look). Lower cost vs. Local presence. Central and Eastern European people have a positive attitude towards DM. DM in Central and Eastern Europe grows yearly in the two-digit area.
We are ready. You are ready ?
Modul no. 4 Modul 4 It will be presented at the 3 rd DM-conference 2007, Budapest Development of outbound DM - Direct Sales - CEE Competence Center (international mail & DM ) - Alternative sales & distribution channels (local presence ) 2007
Thank you for your kind attention ! LEVENTE LÁSZLÓ Sales Executive International Hungarian Post Office Limited International Business Unit H-1540 Budapest, XII. , Krisztina krt. 6 -8 Phone : + 36 – 1 – 487 – 1775 Mobile : +36 – 70 – 466 -1468 Fax : +36 – 1 487 – 1835 E-mail : Laszlo. Levente@posta. hu
e0c28ca816d63b56b7273b524f49688c.ppt