Direct Mail: looking back to see forward regional trends, regional approach

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Direct Mail looking back to see forward
regional trends, regional approach
Presented by Mr. Mazen Dakak Asst. Chief
Executive Officer Emirates Marketing and
Promotions
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Contents

• The Middle East DM Marketplace
• Fact Factors In The ME
• ME Trends Opportunities and Barriers
• DM Development In The ME
• EMP Model

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League Of Arab States Middle East (22 Countries)
Gulf Countries UAE KSA Qatar Oman Bahrain Kuwa
it
Other Arab Countries Lebanon Syria Jordan Pales
tine Yemen Iraq
African Countries Algeria Morocco Tunisia Libya
Egypt Sudan Somalia Djibouti Comoros Mauritania
CIA World Factbook, UAE Ministry of Planning
Population 312 Million GDP 2.3Trillion,
GDP/Capita 7371.7
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People Economy
312 million is the total population of the 22
countries 62.2 of the total population is in
the age group of 15 64 years old
Source World Bank, CIA World Fact Book, UAE
Ministry of Planning 2005
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People Economy
US 2.3 Trillion is the total Arab League GDP
Purchasing Power Parity US 49.0 Trillion is
the total World GDP Purchasing Power Parity
Source World Bank, CIA World Fact Book, UAE
Ministry of Planning 2005
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Advertising ExpenditureMiddle East
Pan Arab Research Center 2005
4.6 Billion is the total Expenditure 43
contributed by the GCC
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Media ExpenditureMiddle East
Pan Arab Research Center 2005
47 of media expenditure is dominated by TV 36
of media expenditure is dominated by newspapers
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ME Mass Communication Facts
9 of ME Population is connected through Mass
Communication Modes
Source World Bank, CIA World Fact Book 2005
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Fact Factors In The ME

• Economic growth 3-10 times in the ME than US
• 9 of the Middle East Population can only be
  reached through the mass communication modes i.e.
  telephones, mobiles, internet, TV and radio.
• The world changes and many businesses established
  themselves in the global space
• Middle East region is in Embryonic stage with DM
  evident by media expenditure trends.
• Media spend set to continue growing by 41 per
  annum

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Fact Factors In The ME

• Level of appreciation of DM differs from country
  to country
• Absence of the awareness of the DM
• No long term DM strategies at the regional level
  to realize the untapped potential in region
• Absence of research studies
• Research conducted in the Region / Middle East is
  owned by private entities i.e. not published.
• 50 of the Middle Easts population is less than
  18 years old, they spend more time on personal
  communication like mobile, chat line and surfing
  the Net than reading newspapers and watching TV

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OPPORTUNITIES

• Middle East huge market with high purchasing
  powers.
• High Revenues could be generated from DM.
• Direct Mail has cut through (reached people)
• Consumers enjoy Direct Mail more.
• Direct Mail delivers on the consumers desire for
  control.
• People of the Middle East respond to DM greatly
  due to lower mail per capita.
• 2.7 Billion Mail items per capita in the middle
  east

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OPPORTUNITIES

• Direct Mail works in more areas than one (loyalty
  programs, financial info, promotions, new product
  announcement, info at work and home).
• Effectiveness of Direct Mail under estimated.
  Effectiveness of TV over estimated.
• Unaddressed mail. The big surprise in response
  rate.
• Business people respond to and prefer Direct
  Mail.
• DM in the west US
• Very profitable high revenue
• High growth rate in the next 3 years

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BARRIERS

• Lack of Information on Database Database
  Management specifically addressing the Region /
  Middle East.
• Weak database and data validation
• Lack of clean mailing address sources in the
  Middle East.
• Lack of published consumer behavior and lifestyle
  researches studies in the Middle East.
• The absence of Response management techniques

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DM Development In The ME

• Establish a Direct Marketing Association for the
  Middle East responsible for
• Formulating long term DM strategies at the
  regional level
• DM research studies
• Co-ordination between DM association and postal
  authorities for Direct Marketing advantages

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DM Development In The ME

• As Direct Mail in the West (US) is very effective
  and lucrative, the way forward in the Middle East
  is to

• Replicate the western experience in DM with a
  tailor-made approach for the Middle East consumer

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DM Development In The ME

• Adopt global best practice in direct marketing
  with some modifications to meet the local
  environment.

• Improve servicing of the industry by
• Providing more P.O. Box stations for easy access
• Encouraging the usage of personal P.O. Boxes
• Leveraging the Postal infrastructure like
• Monitoring RTS mail related to Direct Marketing
• Improving response management techniques
• Make data more accessible

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DM Development In The ME

• Adopt the latest technology to
• Improve accuracy of databases for better response
  rate per campaign
• Install, add, amend, delete and manage Databases
  effectively
• Enable strategic channeling building profiles
  for focused campaigns to targeted audiences
• Reduce RTS to less than 1 by internal validation
  of P.O Box numbers.
• Fulfill Direct Marketing projects according to
  set project plan
• Insure mail delivery within 2-3 days
• Build Call Center to update data and to provide
  service and support to direct marketers
• Integrate Direct Marketing with multi-channel
  campaigns

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DM Development In The ME

• Coordination with the rest of the Arab League
  States for joint DM efforts and sharing of
  information.
• To sponsor an independent research study into
  business peoples and consumers attitude to
  different marketing media
• Diversifying marketing strategy to embrace DM is
  essential to maintain competitive edge
• More educational DM seminars and workshops
  required
• More published articles, features and case
  studies of successful DM campaigns
• Co-ordination with local colleges to develop DM

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• EMP Model

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Agenda

• DM Facts in UAE
• Emirates Post EMP
• EMP Infrastructure
• Success Accounts
• Conclusion

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Advertising ExpenditureGCC
Pan Arab Research Center 2005
3.8 Billion is the total expenditure in GCC UAE,
being the second highest contributor after KSA,
provides us with the right platform to initiate
our entry into The Direct Marketing Industry
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Media ExpenditureUAE
Pan Arab Research Center 2005

• 41 increase over year 2004 in media expenditure
• UAE still focused on traditional marketing
  methods.

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UAE Mail Expenditure 2004
43 Increase over 2004 in UAE Direct Mailing
expenditures. Direct Mailing is progressing but
have not reach the desired level
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UAE Direct Mail Expenditure Per Capita
Year 2005
Emirates Post, CIA- World fact book, PARC , DMA
Global Insight
It is clear that UAE still depends on
traditional marketing methods, unlike USA.
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Emirates Post EMP

• Emirates Marketing and Promotions is a totally
  owned company by Emirates Post
• EMP operate in three vital areas
• Direct Marketing
• Promotions
• Call Center
• Emirates Post invested in EMP for the following
  reasons
• High potential of DM in the UAE
• The success of the DM as a division in EP in the
  last few years
• The industry booming in region
• To enhance and create awareness for DM
• The high revenue generated from the DM in other
  countries

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EMP Infrastructure
Despite the dominance of the traditional
marketing methods, EMP accepted the challenge and
invested on the infrastructure of DM. Such
investment covers

• Owning useful data
• Printing and Fulfillment
• Call Center

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EMP InfrastructureData

• Data Source
• Availability of data sources
• Emirates Posts internal Data
• Different data sources pertaining to public
  information
• Different data sources pertaining business
  information

• Database Management
• All data is stored in a single data base and
  subjected to
• Data cleansing
• P.O Box number verification
• Elimination of data duplication
• Data categorizing

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EMP InfrastructureData

• Currently EMP owns over 2.5 million records
  categorized by

Consumers
Businesses

• Emirate
• Business Activity
• Sub activity
• of employees

• Emirate
• Area
• Nationality
• Age
• Salary
• Education Level
• Job Designation
• Private Address
• Business Address

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EMP InfrastructurePrinting Fulfillment

• IT infrastructure to receive and sort data as per
  clients requirement
• Design
• Latest in laser printing facilities
• Latest equipment to automate insertion and
  sealing

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EMP InfrastructureCall Center

• Call Center covers
• New call center system
• More agents
• Integration with Emirates Post database for
  online data update
• Providing telemarketing services
• Follow up service
• Data validation

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Success Accounts

• With the developed infrastructure, EMP
  successfully served many prestigious customers
  sample of these customers are

• American Express
• Air Miles
• Henkel Arabia
• Showtime
• Riders Digest

Reached 2.7 Response rate
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Conclusion EMP Model
Emirates Post started providing support to the
development of the Direct Mail industry

• Huge investment in EMP
• A 35 increase in P.O Box stations has been
  achieved making it more convenient and accessible
  than ever before
• Contacted over 100,000 organizations to encourage
  employees to have their own P.O box
• Owns over 2.5 Million validated records
• Ability to profile data based on demographic
  criteria
• Management techniques to analyze and measure the
  results
• Call center to follow up and data validation
• Regular updates from different data sources
• Project team established to ensure projects are
  completed
• Availability of data in English and Arabic to
  reach all segments
• Reached 2.7 response rate

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• THANK YOU