Ukrainian direct marketing agency OS Direct will share with you a highly effective direct marketing campaign. This session will cover how to make these calculations and what you can do with the data. It's easier than you think!
Learn why the campaign worked
See which challenges was overcome
Speaker: Alexander Tkachenko from OS Direct, Ukrainian DMA
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IDMD Online: “Notification about ceasefire in competition”. The most boring project with 76% response rate and over 4000% ROI
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2. We presenting you the
short & boring showcase
about a simple project
With 76% response rate
& over 4000% ROI
3. Client: ZIP producer of varnish,
enamels and paints
Terms: 2 month to complete
Target group: 118 largest independent
regional distributors of
paints, enamels & varnish
Product: Two new lines of enamels and
paints
4. Aim: replacement of low and middle price
enamels and paints in the
distributors stores on the products
of ZIP
Challenge: ZIP always sold products through an
own distributive network and never
through independent distributors.
They always were competitors.
Also new products do not have any
unique advantages
5. And at this time in the head of
independent distributor:
•ZIP is a large player at the market,
have a representative office in my
region. Why does a competitor offer to
me to sell his product?
•There are the analogical products in my
list. Why I need to change something?
6. We moving descriptions of
product on the second plan.
On the first plan we put
the benefit from the new
Decision: model of collaboration with
the leader of market in
place of competition. And
using maximum honesty,
openness & respect in
communication letter
We offer competitors everything by what contested
with them before - sharp-cut logistics, storages
in every region, stable & assured deliveries (But
our financial terms, if honestly, not better than
from other suppliers
8. Mechanics of project
1 stage
Letter with Notification about stopping of
competition and suggestion to begin
negotiations
It is a «military»
package with wax seals.
It contains letter and
catalogue of products
9. What is the message?
We want to earn TOGETHER WITH YOU. We create
a product which only you will sell in you
region
We want to earn for a LONG time together with
you. Therefore we are unprofitable to cheat
you
We want to earn MUCH together with you,
therefore offer the best terms of
collaboration and all our experience
We came with suggestion about stopping of
competition and beginning of joint
advantageous work
10. Stage 2
Phone call from assistant
of the ZIP general director
: we appoint negotiations
Additional accent: our
leading manager is ready to
arrive even through a half-
country for this meeting
11. Stage 3
Letter with “thanks” to
distributor, who answered (agreed
to the negotiations)
And together with gratitude is a
clever business-book as a gift
12. And what about distributors which
did not respond?
We also wrote them the second letter. ZIP
general director said thanks to them for a
contact & assured that he always opened for
negotiations. Also he told what companies in
near regions had already become the partners of
ZIP
And after a month «renounced» began to answer
13. RESULTS
48% of independent distributors considered to
earth the “ax of competition” during a project.
28% decided to do it after a month after
completion of project
76% – final effectiveness of project
ROI = more than 4000%
The sales of new unknown products at the
competition market started at the same time on
all Ukraine with zero expenses on advancement
(except for this project )
14. Unique achievements of a project:
• Succeeded to convert competitors into
partners
• Got a 76% response rate
• For 3 months a ZIP national distributive
network was increased on 300%
15. Why does it work?
People estimated honesty, attention and respect
which a supplier showed to them
Some distributors keep
letters from ZIP in their
cabinets. And shows them to
other suppliers with: «look
how my supplier behaves to
me. Yes, it is my former
competitor. But I was not
able say no to THEM»
16. Client reaction?
«Even before completion
of campaign it was
clearly, that this
project create an effect
of the bomb at the
market»
Sergey Kovalenko,
ZIP marketing director