2. Linea Directa Communications Your Direct Line to Success in CEE By: Andreas Sattlberger Bratislava and Wien , June 200 8 Business Case to “Go Direct” in CEE with Linea Directa Communications
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5. 1. Immense Growth Potential in CEE for Direct Selling Source: PMR 2008, CEE markets Growth opportunity for the next years Annual Purchasing Power Per Capita in Europe ( € ), 2007 The criteri a for determining the potential of the countries of Central and Eastern Europe is primarily their disposable income. In addition, the Foreign Direct Investment (FDI) indicates the industrial growth and b2b demand. The GDP per capita in purchasing power standards (PPS) of 27 in Ukraine and 73 in the Czech Republic contrasts with more than 108 in Germany and 122 in Austria, showing still great room for development. Switzerland
6. 2. Excellent Share-of-Voice in CEE High Share of Voice of Direct Marketing The number and amount of direct marketing in CEE countries starts at a low level. That means every of your direct communications is heard and seen better. High Return on Marketing Investment Investments in direct marketing return higher results in CEE markets, where consumers are still curious for a personalized direct approach.
7. 3. Highly Favorable Attitude to Direct Marketing „ I have got mail!“ in CEE Per Capita Mailings While in Austria the average number of mailings counts 550, the same number in CEE is between 350 in Czech Republic down to 14 in Romania. People are still positively surprised to receive personally addressed mail.
8. 4. Media Shift of Budgets from TV to More Balanced Mix Ad spending pattern in classical media in CEE versus AT and GE predicts a shift to more print and direct media (telephone, mailing, e-mailing, prospectus). Source: WU Special Forum, Wien, 2005 Cinema / Outdoor Radio TV Magazines Newspaper
9. 5. Operational Marketing Decisions Are Made Locally To what extent does local management decide about marketing today and in 2009? Source: Dr. Schuh, WU Wien, 2006 Need for Local Market Data and Information Although local decision making in Marketing is already considerable, it will still increase over the next years. This requires local market data, local know-how and local partners like Linea Directa Communications Despite high integration and standardization, local decisions require local knowledge, local people and local partners
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11. 7. Building Long-Term Profit Through The Loyalty Effect Customer lifecycle profit patterns for selected products Direct and database marketing build on customer value accrual, taking into account costs and cash flows beyond the first transaction Annual Profit Age of Account (Years) Source: Prof. Diller, 2007 $100 50 0 -50 -100 -150 -200 -250 -300 Auto Insurance -250 -50 75 90 100 1 2 3 4 5 $100 80 60 40 20 0 1 2 3 4 5 25 35 70 88 88 Auto Service $300 250 200 150 100 50 0 1 2 3 4 5 144 166 192 222 256 Industrial Laundry $200 150 100 50 0 Industrial Distribution 45 99 125 144 168 1 2 3 4 5 Annual Profit
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13. A. Direct Marketing Closes the Loop to Success Testing Reporting Campaign Implementation Metrics & Analyses Detailed Plans & Budgets Project- Management Retail Strategy Database and Marketing Information System Instead of spending the budget on unknown effects, direct marketing programs track activities from objectives through test and execution to measurable results Quality Check Marketing & Sales Goals Marketinformation Customer data Market data Results data Product data Campaign Planning Controlling Revenues / Profits
14. B. Already High Standardization Will Further Increase Source: Dr. Schuh, WU Wien, 2006 Standards Become More Important Increasing professionalization of marketing practice drive the implementation of international standards in marketing processes, market research and marketing controlling. Standardization in direct marketing across CEE enhances learning, fosters knowledge exchange and reduces costs What is your estimate of the degree of standardization in your company’s marketing for CEE today and in 2009? (1 = very low, 6 = very high) Brands Corporate Design Type of Products Type of Channels Advertising Style & LIne Price Positioning Assessment
15. C. Central Control to Ensure Transparency And Compliance Although great improvements have been made, full compliance still requires careful observation that can be implemented through central control Source: PMR Publications , 2008 Transparency & Legality International comparability and standardized procedures ensure high transparency in local dealings. International Benchmarks Cross-country benchmarks provide standards to compare local results & costs and improve learning. Corruption Perceptions Index S elected countries on a scale from 0 (high level of corruption) to 10 (low), 2007
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18. Where We Work: CEE Channels - 20 Countries With 1 Contact We have local office in 20 countries in Central & Eastern Europe; this enables us to talk to over 450 million consumers and millions of B2B customers on your behalf Implement your campaigns - fast We speed up your campaigns: this brings more sales faster Act now and start selling to your customers without delay Use our infrastructure right away and communicate with your potential customers – in their own language, at home or in their offices to achieve your objectives next week 1 contact for 20 countries Talk to us and we manage the fulfilment across all countries Linea Directa Communications Call Centers
19. CLIENT LIST: Clients in CEE (Excerpt) Financial Services Technology Consumer Direct Media Others Automotive FMCG
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21. Who to Contact: Your Direct Line to Customer Success Contact Information: Andreas Sattlberger Karadzicova 8/A, CBC 1 82108 Bratislava, Slovakia Phone (Slovakia) : +421 2 59 220 323 Mobile (Slovakia) : +421 911 283 044 Fax (Slovakia) : +421 2 59 220 245 Mobile (Austria) : +43 676 720 9880 E-mail: [email_address] Please visit our Website: www.linea-directa.eu Now it´s your call! Your Direct Line to Success in CEE A B
