IDMD Online: “Notification about ceasefire in competition”. The most boring project with 76% response rate and over 4000% ROI

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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

Published in: Business
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IDMD Online: “Notification about ceasefire in competition”. The most boring project with 76% response rate and over 4000% ROI

  1. 1. on e ti ir ca ef fi as i io n”“ N ot c e it ut pet bo om a c in
  2. 2. We presenting you theshort & boring showcase about a simple project With 76% response rate & over 4000% ROI
  3. 3. Client: ZIP producer of varnish, enamels and paints Terms: 2 month to completeTarget group: 118 largest independent regional distributors of paints, enamels & varnish Product: Two new lines of enamels and paints
  4. 4. Aim: replacement of low and middle price enamels and paints in the distributors stores on the products of ZIPChallenge: 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. 5. And at this time in the head of independent distributor:•ZIP is a large player at the market,have a representative office in myregion. Why does a competitor offer tome to sell his product?•There are the analogical products in mylist. Why I need to change something?
  6. 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 letterWe offer competitors everything by what contestedwith them before - sharp-cut logistics, storagesin every region, stable & assured deliveries (Butour financial terms, if honestly, not better thanfrom other suppliers 
  7. 7. ZIP notifyingCommunication concept competitors about ceasefire in competition
  8. 8. Mechanics of project 1 stageLetter with Notification about stopping ofcompetition and suggestion to beginnegotiations It is a «military» package with wax seals. It contains letter and catalogue of products
  9. 9. What is the message?We want to earn TOGETHER WITH YOU. We createa product which only you will sell in youregionWe want to earn for a LONG time together withyou. Therefore we are unprofitable to cheatyouWe want to earn MUCH together with you,therefore offer the best terms ofcollaboration and all our experienceWe came with suggestion about stopping ofcompetition and beginning of jointadvantageous work
  10. 10. Stage 2Phone call from assistantof the ZIP general director: we appoint negotiationsAdditional accent: ourleading manager is ready toarrive even through a half-country for this meeting
  11. 11. Stage 3Letter with “thanks” todistributor, who answered (agreedto the negotiations)And together with gratitude is aclever business-book as a gift 
  12. 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 innear regions had already become the partners of ZIP And after a month «renounced» began to answer
  13. 13. RESULTS48% of independent distributors considered toearth the “ax of competition” during a project.28% decided to do it after a month aftercompletion of project76% – final effectiveness of projectROI = more than 4000%The sales of new unknown products at thecompetition market started at the same time onall Ukraine with zero expenses on advancement(except for this project )
  14. 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. 15. Why does it work?People estimated honesty, attention and respectwhich a supplier showed to themSome distributors keepletters from ZIP in theircabinets. And shows them toother suppliers with: «lookhow my supplier behaves tome. Yes, it is my formercompetitor. But I was notable say no to THEM»
  16. 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
  17. 17. THANK YOU! OS-Direct marketing group (Ukraine)http://www.facebook.com/OSDirect www.osdirect.com.ua dm@osdirect.com.ua +38 044 490 90 88

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