Pieter van den Busken Advisory Chairman Good afternoon!

Pieter van den BuskenAdvisory Chairman

Good afternoon!

RCD & Partners

MilanoItalia

Canada 1978

Why InterDirect?

• Local DM professionals with access to the International DM world.

• To exchange the latest, internationaltop level DM knowledge and developments.

• To exchange DM business from countryto country.

What are we talking about today?

• DM statistics in the Netherlands

• Trends and developments in international direct marketing.

• Award winning campaigns from the Netherlands

• The oldest and most successful Direct marketing campaign ever.

• What are the latest trends and developments in international DM?

• Increase of multichannel methods, media and techniques.

(Direct Mail, Direct E-mail, Web, Mobile communications, Telemarketing, etc.)

• Strong increase of e-marketing communications (Direct E-mail, Mobile communications, etc.)

• The use of DM in CRM: from acquisition of new customers to keeping the customers close to

the company, brand and product.

The big question:

How to use all this new and old opportunities in the right balance to get the best results?

The problem:

The lack of experiences and knowledge atboth the agency's and client's side.

The solution:

• Training of DM people.• Exchange of knowledge/experience

on international level.• Test,test,test… and share the results.

Business is getting more international than ever. DM campaigns cross borders. .

1. Big companies are becoming global players.

2. More and more brands and products are developed for international markets.

3. The “global” type of consumer is growing fast.

4. Marketing and communication activities are rolled out in more markets, or at the same time, or one after the other.

Marketing consultants and suppliers have to follow these developments at the client’s side.

Including Direct Marketing agencies.

But how?

By knowing their own market perfectly AND have access to DM professionals

in other markets.

Act local AND act global.

Some Statistics D.M. from Holland

Only until 2003Why?

Our national DMA got bankrupt

In 2003!

Expenditures letterbox 1993 2003Direct Mail 1061 1699Unaddressed 302 711Total letterbox advertising 1364 2410

Expenditures Direct Mail 1993 2003Total expenditures 1061 1699Expenditures prod.costs 540 884Expenditures handl.costs 185 290Expenditures distr.costs 336 525

Expenditures unaddresed 1993 2003Total expenditures 302 711Expenditures prod..costs 215 512Expenditures distr. costs 87 199

Volume 1993 2003Direct Mail 1083 1312Unaddressed 5326 11473Total letterbox advertising 6409 12785

Average Costs Direct mail 1993 2003Average production costs 0,50 0,67Average handling costs 0,17 0,22Average distribution costs 0,31 0,40

Average costs unadressed 1993 2003Average prod. costs 0,040 0,044Average distri. costs 0,016 0,017

Adressed and unadressed mailing

per household, per week:

1991: 15 pcs.

2005: 30,5 pcs. (+5,9% vs 2004)

Interesting! Increasing: door-to-door sampling.

Of all sampling distributions:Door-to-door:

NL 6%UK 44%FR 40%

G 12%IT 6%

Still growing!

Online advertising in NL:

Increase of 55% in 2005 vs 2004:

Of all online advertising in NL:• 46% banners & skyscrapers• 35% content integration & sponsoring• 8% pop ups, interstitials and full

screens• 5% e-mail• 3% search• 3% other

Which industries spend most online advertising in NL?

• Media 21%

• Telecom/ICT 21%

• Finacial sevices 15%

• Horeca/Tourism 8%

Some award winning cases from the Dutch Esprix D.M. & S.P. Awards '05

Nivea.

Share that you care

Case: • There are many product introductions in the field of skin care products. • Many are product (and product

name) orientedTarget: • Create a preference and likeability for

the Nivea brand and their new skin care product

Campaign:

Consumers could send via the Nivea web site a nice, personal letter with a sample of the skin care product by mail to someone they like.Nivea sent the letter and the sample to the consumer who asked for it and to the person the respondent likes.

Results:Target: 100.000 sample sendingsResults: 150.000Many spontanious thanks from consumers.

BiologicaAdopt a chicken

Case:• This foundation promotes biological agriculture and: needs donors for the foundation

Target:• Sell more eggs from biological chickens• Store traffic to 230 biological food stores• More donors for the foundation.

Campaign:Consumers can adopt a biological chicken in 3

ways:• Adopt a chicken for one year.• The "Chicken-Gift", a present to other people to

adopt a chicken for a half year.• "Chicken-and Egg" bankaccount at the Triodos

bank No interest from your money, but you get biogical

EGGS, for 5 years. Adoptants/attendents are automatically donors of

the foundation

Results:Target: 17.500 donorsResult: 32.000Sales of biological eggs + 27%

Heineken.Scream the Orange soccer team to the top.

Case:• The beer market does not grow• Market share increase must come from other

brands• More and more promotional activities are

used, instead of theme/brand advertising.• 25% of the beer volume comes from

promotion.

Targets:Sales: increase of market penetration of 2%.Increase of market share: 1%Increase of beer volume: 10%Distribution of promotional packages: 70%Sales of "loud speakers/hats": 200.000

Campaign:Dutch soccer game viewers always scream and like to be dressed funny with something orange.The big idea: the "loud speaker hat"You can scream and shout AND you can wear it on your head.The hat could be bought with a tray of beer.

Results:Many more than the targeted 200.000 hats were sold.People were dressed with it everywhere, especially at the soccerchampionship in Portugal. A big hit.

The best results: lots of free publicity!Carlsberg beer complained and forbidded to wear the Heineken hats in the stadiums!

Multikabel Homework for schools

Case:

• Multikabel is a Dutch supplier of internet connection on a glassfiber network, targeted to schools.

• Their competitor NL Tree was the monopolist in Holland till 2005.

Target:Generate contacts with schoolsSell contracts to schools.

Campaign:

Multikabel sent 2 mailings in the size and format of a classical school exercise-book.The text was hand written.In the first mailing they explained the offer and offered a discount if the school replied for the deadline.

If people did NOT reply before the deadline they received an exercise-book with 20 lines with the same text as a"punishment" for not responding on time.

Results:First Mailings sent: 600Contracts: 50Second reminder mailing sent: 500Contracts: 119

MiniNOT for sale!

• How to create more new, refreshing ideas to promote the whole year through the Mini cars.

Target(s):

Generate leads to Mini dealersCommitment/Involvement of Mini owners

Campaign:All Mini owners received an email, with the message:print the poster "This Mini Is Not for Sale. Go to the Mini dealer and buy one yourself”.Mini owners and Mini dealers were requested to make a photo of the poster on the car or showroom windows and send the photo to the "Mini action website"Senders had the chance to win a prize.

Results:Lot of free publicity and positive reactions from Mini owners.70% of all emails to owners were opened.7% sent in photo'sAnd … a very low budget!

Who the hell is Hans Ubbink?

Case:

• The clothing industrie is having heavy times.

• Retail outlets do not want to buy more fashion design "labels"

Target(s):

• How to get sales leads from retail-outlets which want to sell the (young) Hans Ubbink fashion?

Campaign:

Hans Ubbink is the designer himself.He is not very well known yet.

The direct mail campaign had 3 mail shots:

1. Box with T-shirt: "Who the hell is Hans Ubbink?" plus a personalized letter from Hans.

2. Box with the "Holiday Do Book of Hans Ubbink", for addults. Designed and developed by Hans.

3. Box with mobile phone.

With a voice mail from Hans "Please come to my fashion show". The recepient could speak his/her message to Hans as a reply.

Results:

Mailed: 50 pieces Response for new contacts: 36%

Maetis ArboIt is your turn now!

Case:

• More competition, because of the new "free commercial market" for supporting social and health services

• Maetis Arbo offers the service of prevention and coaching at absence by illness of employees.

Target:

• Generate leads from company prospects to inform them about the services of Maetis Arbo, and build a relationship with contactpersons at companies.

Campaign:

The central creative idea is based on baseball. Only one person: the "hit man", who has to hit the ball can score and let other people score.

There were 4 mailings

1. Mailing with a real baseball stick "You can score"

2. Mailing with a baseball knee cushion3. Mailing with a real baseball ball "You can hit the ball yourself now"4. Mailing with a package of classical

baseball chewing gum.

Results:Target Group: 2.000Sales appointments: 1.000 (50%)Cost/Plan proposals to prospects: 500 (50%)Brand awareness: from 8% tot 26%(within target group)

Golf on Spot

How to introduce a new medium:Hole in one!

Case:

• How to introduce a complete new medium: folders/cards in a display on golf courses

Target:

• Getting sales leads from the top 25 media buying agencies.

Campaign:

Promoteams glued stickers with (half) golf balls on all cars parked at the top 25 media buying agencies on the front window screens of cars.

With a leaflet behind the whipers. It looked if a golf ball really has hit the window of the cars

Results:

Orders from media-buying agencies in the first 3 months: 320% higher than the target.

With an extremely low budget: 6.000 Euro!

ING BankAmsterdam Marathon 2004

Case:

• Create promotional activities to increase brand and image awareness through the ING Globerunners program.

Target:

Increase the awareness of ING as the main sponsor of the ING Amsterdam Marathon. An event of sport and entertainment.

Campaign:

• Strategy: rumour around the ING brand and the event, by new, creative activities, like:

shoe-boats in the Amsterdam Canals

• Huge sand shoe sculptures in Amsterdam

+ Many media activities: TV, Radio, Print, Outdoor, etc.

Results:More marathon runners: + 42%More visitors: + 29%More free publicity: + 74%

RabobankThe Rabo Total Package

Case:

All banks sell "total packages" of financial services, no separate products anymore.

•How to promote this in a different way?

•Especially just before the holiday saeson?

Target:

More efficient communication channels and spend less costs to get the requested results.

Campaign:

130.000 clients received a mailing just before holiday time. With a window envelope and a "typical" holiday photo of a family.Now if you insert the photo (which is also the reply card) behind the window you can read the 10 selling points, why you should order the Rabobank Total Package.The same method was done by email.

Results:

Target: 9,5% conversionResult: 11.6% conversion20% more than expected.

30% less costs by the use of email

What’s new inInternational Direct Marketing?

A very successful case history of international direct communications from the past.

Cleopatra’s Direct Mail campaign

What was the result?

100%

Thank you for your attention.

Pieter van den Busken