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  • 1. Your Direct Line to Success in CEE A B
  • 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
  • 3. Direct Selling as a Key Driver for CEE Sales
    • Direct marketing delivers measurable results in CEE
    • Central coordination increases speed, execution and results
    • Linea Directa Communications is the right partner for success
    Your business faces great opportunities in CEE, while at the same time competition is heating up. Classical marketing and branding tools have built a sound foundation, but they do not deliver the sale. That is the reason why business leaders need to leverage modern direct selling instruments to acquire, build and retain profitable customers . “ It’s about sales!” Therefore, you can win more customers, leads and sales in CEE through taking advantage of these opportunities:
  • 4. I. WHY DIRECT? Direct Marketing Delivers Results in CEE
    • Direct Marketing in CEE offers great profit opportunities
    • Potential for growth through direct selling in CEE is immense
    • Excellent Share-of-Voice for direct marketing in CEE
    • Highly favorable attitude towards personalized marketing
    • Media shift of budgets from TV to more balanced mix
    • Operational Marketing decisions are made locally
    • Building profitable relationships through interactive dialogues
    • Building long-term profit through the loyalty effect
    Modern direct marketing produces measurable results with high productivity and accountability, especially in the CEE markets; the 7 biggest reasons are:
  • 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
  • 10. 6. Building Relationships Through Interactive Dialogues Interactivity creates win-win relationships for increased loyalty, which ensures a profitable life-time value per customer
    • Managing Your Customer´s
    • Life Cycle for Higher Results
    • Sign up a new lead
    • Identify the customer by name, address & sale
    • Differentiate between customers
    • Interact with customers through on-going dialogue
    • OR: Fire unprofitable customers
    • Customize the offer to better serve buyer needs
    Customize Text Identify Differentiate Interact Lead / Sign On Fire
  • 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
  • 12. II. Central Coordination Increases Speed, Compliance, Execution and Growth
    • Direct marketing closes the loop to success
    • Standardization in direct marketing across CEE enhances learning, fosters knowledge exchange and reduces costs
    • Central control to ensure transparency and legal compliance
    • Integrated marketing delivers synergies and high results across countries
    While many decisions in direct marketing need to be made locally, in order to be a company strategy the overall leadership, direction and know-how must be centrally initiated, coordinated and controlled Central coordination supports local implementation
  • 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
  • 16. D. Optimization With Integrated Marketing Across Countries Company Management Strategy & Research Implementation (Linea Direct Comm) Results & Reporting Czech Republic Slovakia Hungary Slovenia Ukraine Romania Bulgaria Russia Estonia ……… . ……… . Cross-Country Controlling and Improvement
    • Within-Country Results Optimization
    • Number of Leads
    • Revenue and Sales
    • New Customers
    • # of Appointments
    • € of Cross Sells
    • Customer Data
    • Repurchase
    • etc.
    Central management increases results and control through cross-country controlling and within-country optimization Local Company Program Director Central Coordination
  • 17. III. PARTNER: Why Linea Directa Communications?
    • We focus on measurable results as you define them
    • Unique organization of local offices across 20 CEE countries with one-stop-shopping convenience
    • Established and experience in CEE since 1995
    • Deep experience and knowledge on local customers, data and success factors in selling
    • High quality contacts with your target customers ensure strong results and brand stewardship
    • Delivery of risk-free, performance-based campaigns
    • We take full responsibility for the successful execution
    • Diligent administration, documentation and reporting ensure transparency, feedback & control
    • Central oversight with de-central execution delivers local results with central accountability
    One partner - the right one - for getting results
  • 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
  • 20. SUCCESS: What To Expect When Working With Us
    • Clear agreements and profound understanding of your market objectives
    • Unmatched platform & infrastructure of channels across 20 markets
    • Making every customer contact work for you, because: We take it personally!
    • High quality execution to deliver to you what counts: measurable results
    • Direct access to your CEE customers with 1 single contact
    When partnering with us, your objectives are the compass for our delivering results to you. As a client you can expect from us:
  • 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