In the third quarter of 2009, Linea Directa Communications - part of Studio Moderna Group, one of the biggest and fastest developing direct marketing and call center companies, conducted by phone a survey among 1200 Sales/ Marketing/ General Directors about economic crisis and its consequences for Central and Eastern Europe Objective of the survey was to investigate industries pains, needs and challenges during financial crisis. The analysis included not only the kind of effects companies have experienced but also measures that have been taken or planned so far. The managers answered where did the companies cut the budgets and where did increase it comparing to 2008. Last part of the questionnarie is related to utilization of marketing and direct marketing channels. We will find if companies are interested to invest in sales and promotion activities during financial crisis and the evolution of budgets per each country.

1. The impact of financial crisis in Central and Eastern Europe
Sales and Marketing strategies used in 2009
Study CEE 2009: summary of results
LINEA DIRECTA COMMUNICATIONS

2. INTRODUCTORY REMARKS
Introductory remarks
< quarter of 2009, Linea Directa Communications - part of Studio Moderna Group, one of the biggest
In the third
and fastest developing direct marketing and call center companies, conducted by phone a survey among
1200 Sales/ Marketing/ General Directors about economic crisis and its consequences for Central and Eastern
Europe
< the survey was to investigate industries pains, needs and challenges during financial crisis
Objective of
< included not only the kind of effects companies have experienced but also measures that have
The analysis
been taken or planned so far
<
The managers answered where did the companies cut the budgets and where did increase it comparing to
2008
< the questionnarie is related to utilization of marketing and direct marketing channels. We will find if
Last part of
companies are interested to invest in sales and promotion activities during financial crisis and the evolution of
budgets per each country
CEE SURVEY 2009 |2
LINEA DIRECTA COMMUNICATIONS

3. INTRODUCTORY REMARKS
Eleven countries in CEE were surveyed, covering 15 industries
– Significant number of responses achieved in ten sectors
9,9 5,6 1,4
3,8
2,5
11,3
8,5 11,3
10,0
14,1
1,4
19,7
1,4
16,9 COMMENTS
1,7
6,7
14,3 2,4 11,4
© The study was conducted in
9,0 3,6
40,5
7,6
1,7 18,6
14,8
eleven countries
2,8 1,7 8,3
6,7
7,5 43,3
16,4
10,3
5,8
4,2
© CEE was represented by
2,4 16,7
4,8
12,3 9,0
4,9 Slovakia
Russia, Czech Republic,
35,2 5,7
5,2
14,8 7,5 15,4 12,7 Slovenia Hungary, Poland, Romania,
6,6
17,3 3,2
7,4
Russia Slovakia and Slovenia
8,4 Romania
11,0
10,5 1,0 23,6
18,5 10,5 Poland
0,5
8,7 7,7 12,8
12,0
Hungary The main participants at
©
14,4 1,5
3,6 3,1 4,6 9,7 Czech survey was from industries
© automotive, financial
such as:
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CEE SURVEY 2009 utilities |3
LINEA DIRECTA COMMUNICATIONS

4. SURVEY RESULTS
The impact of the financial crisis on sales in CEE
Sales level in 2009 comparing to 2008 COMMENTS
© of companies from
Only 4%
Poland registered a drop in sales
18 33 more than 30% in 2009, while
Slovakia
29 Romania has the biggest
31 Slovenia percentage 26%, followed by
28 Russia
28
Hungary with 14% and Russia
30
15 Romania with 12%
36 25 Poland
10 17
16
26 16 Hungary © the economic crisis, the
Due to
17 38 24 number of companies that
7
9 22 Czech
24 11 47 reported an increase of sales is
32 33 13 16 extremely low: 9% In Czech, 9%
12 4
18 11
9 7 Romania and 10% in Slovakia.
1
The most affected industries are
Increased Remained the Decreased 0-15% Decreased 15- Decreased 30- Decreased 50- Decreased above
same 30% 50% 70% 70%
automotive, constructions, real
estate and retail.
CEE SURVEY 2009 |4
LINEA DIRECTA COMMUNICATIONS

5. SURVEY RESULTS
Measures planning to overcome crisis
- Product innovation, development of new services in accordance with real needs of existing clients is considered
the key to overcome the financial crisis
<from 1-4 (4 being the most important), from a list with measures planning to overcome crisis, companies
On o scale
take in consideration as key measure product innovation, new services development, customized products
launch in accordance with actual needs of the existing clients - in Slovenia (3,60) and Hungary (3,53). The need to
innovate to survive is often the mantra of those who are successful in business. This is because innovation by its very
nature means doing things differently. Every company needs to innovate to maintain a competitive edge, which is all the
more important in turbulent markets.
< from Romania relies on tapping into new customer segments, regional expansion (3,32). Entering new
Companies
markets into which existing products can be sold – new industrial sectors or new geographical areas – offer
opportunities to build cash flow, profits and market share.
<
in Poland respondents pay much attention for new sales and distribution channels (3,29).
< at survey don't take account on strategic partnerships during the crisis, although can bring long-term
Participants
benefits. The focus is currently now placed on overcoming the economic crisis. In Russia the score is only 1,78 for
companies using these kind of strategies.
CEE SURVEY 2009 |5
LINEA DIRECTA COMMUNICATIONS

6. SURVEY RESULTS
Measures planning to overcome crisis
- Cost reduction program, revised budgets and hiring freeze, working with new suppliers or renegotiating prices
with older partners are the most used measure in the countries analyzed
Financial pressures force firms to cut costs on a wide range of investments, such as marketing, training and
research&development. When the economy is in a downturn, many business expenditures such as promotional, sales and
market research outlays are cut first because they do not show tangible and immediate results.
Moreover, reducing costs can be dangerously obvious to the market, producing a deterioration in customer service, an
absence in sales reps, delayed delivery times or a lower quality product or service. In spite of tumultuous change, the
customer's experience with the product must continue to live up to the promise of the brand, and management must not
sacrifice its image and identity by cheapening its product.
Not surprisingly, the most common strategic responses involve cost reductions and product-related strategies (focusing
on core products or services, the introduction of new products and the rationalization of product lines). The least
common strategic responses to the recession are those that involve major structural changes to the organization, namely
mergers, partnerships and acquisitions.
CEE SURVEY 2009 |6
LINEA DIRECTA COMMUNICATIONS

7. SURVEY RESULTS
Measures planning to overcome crisis
- the main benefits of outsourcing
< survey, companies started also to outsource operations that are not core activities. For example, there are
According to
many small companies which are using external providers for activities related to accounting, IT or distribution, often
because they want to decrease costs and they do not have another solution.
<
On the contrary, the main factor for multinationals in the outsourcing decision process is represented mainly by the
decision of keeping in house the added value processes, focusing their efforts on the main activity, and also on
developing specific seasonal projects. Nevertheless reducing cost is playing, even if sometimes is not recognize as
a decision factor, an important role. Several studies showed that outsourcing can help reducing cost up to 40%, for all
typies of companies.
< striving economical times, resizing cost is the main point of discussions between specialists in all
In the actual
companies. For various players that are developing internal operations like research, marketing, distribution or training,
the high sales price of their products is often having the roots in the internal higher costs of producing that product. By
outsourcing, some companies aim to resize their internal costs and so to create an important competitive advantage.
< training costs are in many cases high and companies are making real sacrifices in order to pay them,
Recruiting and
but often employees do not raise expectations and this cost in some cases is not worthy to be paid. Outsourcing the HR
services can be the solution to address this situation.
CEE SURVEY 2009 |7
LINEA DIRECTA COMMUNICATIONS

8. SURVEY RESULTS
Measures planning to overcome crisis
- the main benefits of outsourcing
<
"How we treat our customers?" is a key question that must be answered carefully. Some Customer Care services
are made better by outsourcing, because these type of companies are specialized in providing services on
specific markets and their experience in the execution of these activites is proved.
<
In Central and Eastern Europe there is a number of companies that offer locally and international services. If you have
small projects or simply you want to reduce stuff and infrastructure costs, the best solution is to use an external partner.
In the light of experience gained, such a company can give you better results and more quickly.
<
Using outsourced services, companies can reduce the costs with 10% up to 40%. But they must not only think about
the fact that outsourcing reduces the costs, because also these services help to increase also the revenue and the
quality of services provided to customers.
CEE SURVEY 2009 |8
LINEA DIRECTA COMMUNICATIONS

9. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- companies with small marketing budgets dominated in 2009
Marketing budgets in 2009 COMMENTS
5,4 1,9 1,3 4,5 3,4
1,0 2,9 8,6
4,3 4,9 the smallest budgets undering
©
6,0 7,5 1,1 8,6
14,8
10,2 250.000 € was reported
15,0
24,6 especially in Hungary (89,4%),
21,7
Russia (88,6%) and Romania
(85,4%)
4. Above 1.000.000€
3. 500.000 € - 1.000.000€
The biggest budgets, above
©
2. 250.000 € - 500.000 €
89,4 85,4 88,6 1.000.000€ are meet in small
79,5 1. Less than 250.000 €
66,9
72,2 70,5 percentages in Czech (5,4%),
Slovakia (4,9%), Poland (4,5%)
and Slovenia (4,3%)
Czech Hungary Poland Romania Russia Slovenia Slovakia
CEE SURVEY 2009 |9
LINEA DIRECTA COMMUNICATIONS

10. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- Marketing budgets suffered in 2009 a lot of modifications
The evolution of marketing budgets in 2009 COMMENTS
© the biggest cuts in
In 2009
Slovakia 9,8 31,1 18,0 21,3 8,2 11,5
marketing budgets are made in
Russia (28,6%) and Romania
Slovenia 16,2 43,9 18,7 14,6 5,6 1,0
(22,7%), companies reducing
budgets at least with 30%.
Increased
Similar budgets as in 2008 are
Russia 19,6 23,2 17,9 10,7 12,5 10,7 5,4 Remained the same
in big percentages in Hungary
Decreased 0-15%
Decreased 15-30%
(44,4%), Slovenia (43,9%) and
Romania 15,1 26,7 16,4 19,1 15,1 6,2 1,3
Decreased 30-50%
Poland (43,4%)
Poland 19,2 43,4 19,2 10,1 7,1 1,0 Decreased 50-70%
Decreased above 70% © other hand, there are
On the
also companies investing in
Hungary 6,8 44,4 13,6 19,8 13,0 1,2 1,2
marketing communications,
countries such as Russia
Czech 13,0 39,5 24,9 10,2 8,5 2,3 1,7
(19,6%), Poland (19,2%) or
Slovenia (16,2%)
CEE SURVEY 2009 |10
LINEA DIRECTA COMMUNICATIONS

11. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- Marketing budgets suffered in 2009 a lot of modifications
Marketing budget distribution on each channel in 2009 COMMENTS
Direct mail the biggest budgets are spent in
©
mainly in events&fairs (Russia),
Telemarketing internet promotion (Romania&
E-mailing
Hungary) - using banners,
blogs, social networks, etc,
Internet promotion mass marketing in Slovenia (TV,
newspapers, radio) and
SMS or Mobile marketing catalogues
Catalogue
The smallest budgets
©
Mass marketing (TV, billboard, (representing max 30% from
newspapers) marketing budgets) are
Events&fairs
allocated for sending SMS&
Public relations Mobile Marketing (Russia),
Czech Hungary Poland Romania Russia Slovenia Slovakia
telemarketing (Slovenia,
Slovakia), direct mailing
CEE SURVEY 2009 (Russia), emailing and PR |11
LINEA DIRECTA COMMUNICATIONS

12. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- the most used channels of communication
Marketing channels used by companies in their communication with clients COMMENTS
Direct mail - addressable © used channels are
the most
Direct mail - not addressed - drop mail internet (Slovenia), e-mailing
(Russia), fairs&events
Telemarketing (Slovenia), direct mailing
E-mail marketing
(Romania) and catalogues
(Poland)
Internet promotion (banners, Google adwords,
bloging, social networking) © other
On the hand, SMS&
SMS or Mobile marketing
Mobile marketing, drop mail,
Catalogue telemarketing and mass
marketing are considered less
Mass marketing (TV, billboard, newspapers)
important channels, especially in
Fair/events Slovenia and Slovakia
Czech Hungary Poland Romania Russia Slovenia Slovakia Public relations
CEE SURVEY 2009 |12
LINEA DIRECTA COMMUNICATIONS

13. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- the objectives followed in promotion campaigns
COMMENTS
Generate new leads / acquiring new According to the study,
©
consumers companies organize marketing
Additional sales to existing consumers campaign in order especially
to increase the number of
Better awareness of the brand / products clients, to improve customer
retantion and loyalty and
Repositioning of the brand / products maximize the existing
customers through additional
Build accurate database sales.
Improve loyalty of customers Companies pay less atention
©
to develop accuarate
databases (that can be used
Czech Hungary Poland Romania Russia Slovenia Slovakia later in their communication
campaign) or to create a better
awarness and repositioning for
CEE SURVEY 2009 brand/ products. |13
LINEA DIRECTA COMMUNICATIONS

14. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- direct marketing outsourcing
COMMENTS
The percentage of companies outsourcing The percentage of companies outsourcing
direct marketing activities at group level direct marketing per countries In CEE region many are speaking
now about outsourcing as a cost
84,8
saving measure for the
74,4 74,6
68,6 companies.
4% 61,5 61,5
15%
46,7
© is the biggest
In Czech
32%
36,5
percentage of companies
5% 35,2 35,0
31,4 outsourcing direct marketing
25,6 25,4
18,3 activities (74,4%), followed by
13,1 Poland (61,5%) and Romania
21% 6% 2,1 3,3 2,0 (36,5%).
17%
Czech Hungary Poland Romania Russia Slovenia Slovakia
© over hand, 84,8% of
On the
Czech Hungary Poland Romania Russia Slovenia Slovakia 1. Yes 2. No 3. Dont know/No answer companies are not outsourcing
in Hungary, 74,6% in Slovakia,
68,6% in Slovenia and 46,7%
CEE SURVEY 2009 in Russia. |14
LINEA DIRECTA COMMUNICATIONS

15. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- direct marketing outsourcing
The most outsourced direct marketing activities in CEE COMMENTS
The most outsourced direct
©
Direct mail addressable
marketing activities are the
Direct mail not addressed - drop mail newest channels of
communication such as Internet
Telemarketing
promotion (banners, google
E-mail marketing adwords, bloging, social
networking), fairs& events
Internet promotion (banners, google
preparation, mass marketing
adwords, bloging, social networking)
SM or M
S obile marketing (TV, billboard, newspapers)
Catalogue
Less outsourced are
©
M marketing (TV, billboard,
ass telemarketing, emailing, drop
newspapers) mail and SMS or Mobile
Fairs/Events
Czech Hungary Poland Romania Russia Slovenia Slovakia marketing
CEE SURVEY 2009 |15
LINEA DIRECTA COMMUNICATIONS

16. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- communication throug call center services
The percentage of companies using call center (inhouse/ outsourced) COMMENTS
46
The biggest number of
©
S lo v a kia R e fu se to a n sw e r
3
51
companies developing internal
D o n t u se ca ll ce n te r se r v ice s
call center operations are in
61
S lo v e n ia 3
4 Czech (43%)
31
6 B o th ( in h o u se a n d o u tso u r ce d )
62
R u ssia
6 The major companies
©
26
O u tso u r ce d ca ll ce n tr e outsourcing to a contact center
51 are in Romania and Russia
R o ma n ia 2
6 In h o u se ca ll ce n tr e
41
(6%)
1
78
P o la n d
3
19 The majority of companies don’t
©
2
H ungary 2
68 use call center services - 78% in
4
25 Poland, 68% Hungary, 62%
C ze ch 1
43 Russia, 61% Slovenia
4
53
CEE SURVEY 2009 |16
LINEA DIRECTA COMMUNICATIONS

17. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- typies of call center activities outsourced in 2009
The main services provided by Contact Center COMMENTS
On a scale from 1 to 4 (4
©
means that clients use very
4,0
often a type of service) the
3,5
3,2 most requested services are
3,0
2,7 infoline, inbound sales
2,5
2,1
2,3 (received calls from people who
want to buy something),
customer care& help desk and
database management
Last ones but not leas are
©
Customer care/Help Infoline Inbound sales Outbound sales Lead Generation; Database Market research Appointment setting market researchs services,
desk profiling & client management services appointment setting services,
segmentation
lead generation (profiling and
client segmentation) and
outbound sales (calls made to
CEE SURVEY 2009 sell). |17
LINEA DIRECTA COMMUNICATIONS

18. SURVEY RESULTS
The impact of the financial crisis on marketing and sales activities
- call center activities: pros and cons
< use an internal call center department taking in consideration the personal relationship with
Companies
customers and the quality of dialogues. On the opposite side, they pay less atention for the easier way to
manage the overflow of calls provided by a contact center and they forget about costs efficiency.
< category is represented by the companies outsourcing to a Contact Center, the main reasons
The second
being: the possibility manage a big overflow of calls, taking the advantages of an advanced technology for a
fast implementation of projects, allowing in the same time to focus on their core activities that can generate
profit directly. Other advantages offered by outsourcing and recognized by the companies, in order of priority,
are the professionalism of a contact center, through specialized trainings on each developed project, reduced
costs with staff, equipment, utilities and so on, share risks with a foreign partner, focus on core business and
so on
<also companies that are not outsourcing call center activities because they have internally
These are
resources to do these operations, or they can not afford it because they have low communication budgets or
they don't have enough informations about the process of outsourcing, what is about and what kind of
benefits brings.
CEE SURVEY 2009 |18
LINEA DIRECTA COMMUNICATIONS

19. CONTACT US
Our local management and consultant team are eager to hear
you opinion and to share their further knowledge with you
If you.... ....contact us
…are interested in Linea Directa Communications
industry specific results Attn.: Dejan Grbic
Slovenia
Linea Directa d.o.o.
…wish to discuss other Kolodvorska 9
issues related to the 6 000 Koper
crisis Phone (Slovenia):
+386 5 66 44 900
Fax (Slovenia):
…want to share your +386 5 66 44 883
E-mail:
opinion or comments dejan.grbic@linea-directa.eu
Please visit our Website:
www.linea-directa.eu Linea Directa Communications Office s
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