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  1. 1. “ Direct Mail: looking back to see forward – regional trends, regional approach” Presented by: Mr. Mazen Dakak Asst. Chief Executive Officer Emirates Marketing and Promotions
  2. 2. Contents: <ul><li>The Middle East DM Marketplace </li></ul><ul><li>Fact Factors In The ME </li></ul><ul><li>ME Trends – Opportunities and Barriers </li></ul><ul><li>DM Development In The ME </li></ul><ul><li>EMP Model </li></ul>
  3. 3. Population 312 Million GDP $2.3Trillion, GDP/Capita $7371.7 League Of Arab States Middle East (22 Countries) Gulf Countries: UAE KSA Qatar Oman Bahrain Kuwait African Countries : Algeria Morocco Tunisia Libya Egypt Sudan Somalia Djibouti Comoros Mauritania Other Arab Countries : Lebanon Syria Jordan Palestine Yemen Iraq CIA – World Factbook, UAE Ministry of Planning
  4. 4. People & Economy 312 million is the total population of the 22 countries 62.2 % of the total population is in the age group of 15 – 64 years old Source: World Bank, CIA World Fact Book, UAE Ministry of Planning 2005
  5. 5. People & Economy Source: World Bank, CIA World Fact Book, UAE Ministry of Planning 2005 US $ 2.3 Trillion is the total Arab League GDP – Purchasing Power Parity US $ 49.0 Trillion is the total World GDP – Purchasing Power Parity
  6. 6. $4.6 Billion is the total Expenditure 43% contributed by the GCC Advertising Expenditure Middle East Pan Arab Research Center 2005
  7. 7. 47% of media expenditure is dominated by TV 36% of media expenditure is dominated by newspapers Media Expenditure Middle East Pan Arab Research Center 2005
  8. 8. ME Mass Communication Facts Source: World Bank, CIA World Fact Book 2005 9% of ME Population is connected through Mass Communication Modes
  9. 9. Fact Factors In The ME <ul><li>Economic growth 3-10 times in the ME than US </li></ul><ul><li>9% of the Middle East Population can only be reached through the mass communication modes i.e. telephones, mobiles, internet, TV and radio. </li></ul><ul><li>The world changes and many businesses established themselves in the global space </li></ul><ul><li>Middle East region is in Embryonic stage with DM evident by media expenditure trends. </li></ul><ul><li>Media spend set to continue growing by 41% per annum </li></ul>
  10. 10. Fact Factors In The ME <ul><li>Level of appreciation of DM differs from country to country </li></ul><ul><li>Absence of the awareness of the DM </li></ul><ul><li>No long term DM strategies at the regional level to realize the untapped potential in region </li></ul><ul><li>Absence of research & studies </li></ul><ul><li>Research conducted in the Region / Middle East is owned by private entities i.e. not published. </li></ul><ul><li>50% of the Middle East’s population is less than 18 years old, they spend more time on personal communication like mobile, chat line and surfing the Net than reading newspapers and watching TV </li></ul>
  11. 11. OPPORTUNITIES <ul><li>Middle East huge market with high purchasing powers. </li></ul><ul><li>High Revenues could be generated from DM. </li></ul><ul><li>Direct Mail has cut through (reached people) </li></ul><ul><li>Consumers enjoy Direct Mail more. </li></ul><ul><li>Direct Mail delivers on the consumer’s desire for control. </li></ul><ul><li>People of the Middle East respond to DM greatly due to lower mail per capita. </li></ul><ul><li>2.7 Billion Mail items per capita in the middle east </li></ul>
  12. 12. OPPORTUNITIES <ul><li>Direct Mail works in more areas than one (loyalty programs, financial info, promotions, new product announcement, info at work and home). </li></ul><ul><li>Effectiveness of Direct Mail under estimated. Effectiveness of TV over estimated. </li></ul><ul><li>Unaddressed mail. The big surprise in response rate. </li></ul><ul><li>Business people respond to and prefer Direct Mail. </li></ul><ul><li>DM in the west US </li></ul><ul><ul><li>Very profitable – high revenue </li></ul></ul><ul><ul><li>High growth rate in the next 3 years </li></ul></ul>
  13. 13. BARRIERS <ul><li>Lack of Information on Database & Database Management specifically addressing the Region / Middle East. </li></ul><ul><li>Weak database and data validation </li></ul><ul><li>Lack of clean mailing address sources in the Middle East. </li></ul><ul><li>Lack of published consumer behavior and lifestyle researches & studies in the Middle East. </li></ul><ul><li>The absence of Response management techniques </li></ul>
  14. 14. <ul><li>Establish a Direct Marketing Association for the Middle East responsible for: </li></ul><ul><ul><li>Formulating long term DM strategies at the regional level </li></ul></ul><ul><ul><li>DM research & studies </li></ul></ul><ul><ul><li>Co-ordination between DM association and postal authorities for Direct Marketing advantages </li></ul></ul>DM Development In The ME
  15. 15. DM Development In The ME <ul><li>As Direct Mail in the West (US) is very effective and lucrative, the way forward in the Middle East is to: </li></ul><ul><li>Replicate the western experience in DM with a tailor-made approach for the Middle East consumer </li></ul>
  16. 16. <ul><li>Adopt global best practice in direct marketing with some modifications to meet the local environment. </li></ul>DM Development In The ME <ul><li>Improve servicing of the industry by: </li></ul><ul><ul><li>Providing more P.O. Box stations for easy access </li></ul></ul><ul><ul><li>Encouraging the usage of personal P.O. Boxes </li></ul></ul><ul><ul><li>Leveraging the Postal infrastructure like: </li></ul></ul><ul><ul><ul><li>Monitoring RTS mail related to Direct Marketing </li></ul></ul></ul><ul><ul><ul><li>Improving response management techniques </li></ul></ul></ul><ul><ul><ul><li>Make data more accessible </li></ul></ul></ul>
  17. 17. <ul><li>Adopt the latest technology to: </li></ul><ul><ul><li>Improve accuracy of databases for better response rate per campaign </li></ul></ul><ul><ul><li>Install, add, amend, delete and manage Databases effectively </li></ul></ul><ul><ul><li>Enable strategic channeling – building profiles for focused campaigns to targeted audiences </li></ul></ul><ul><ul><li>Reduce RTS to less than 1% by internal validation of P.O Box numbers. </li></ul></ul><ul><ul><li>Fulfill Direct Marketing projects according to set project plan </li></ul></ul><ul><li>Insure mail delivery within 2-3 days </li></ul><ul><li>Build Call Center to update data and to provide service and support to direct marketers </li></ul><ul><li>Integrate Direct Marketing with multi-channel campaigns </li></ul>DM Development In The ME
  18. 18. DM Development In The ME <ul><li>Coordination with the rest of the Arab League States for joint DM efforts and sharing of information. </li></ul><ul><li>To sponsor an independent research study into business people’s and consumers attitude to different marketing media </li></ul><ul><li>Diversifying marketing strategy to embrace DM is essential to maintain competitive edge </li></ul><ul><li>More educational DM seminars and workshops required </li></ul><ul><li>More published articles, features and case studies of successful DM campaigns </li></ul><ul><li>Co-ordination with local colleges to develop DM </li></ul>
  19. 19. <ul><li>EMP Model </li></ul>
  20. 20. Agenda <ul><li>DM Facts in UAE </li></ul><ul><li>Emirates Post & EMP </li></ul><ul><li>EMP Infrastructure </li></ul><ul><li>Success Accounts </li></ul><ul><li>Conclusion </li></ul>
  21. 21. $3.8 Billion is the total expenditure in GCC UAE, being the second highest contributor after KSA, provides us with the right platform to initiate our entry into The Direct Marketing Industry Advertising Expenditure GCC Pan Arab Research Center 2005
  22. 22. <ul><li>41% increase over year 2004 in media expenditure </li></ul><ul><li>UAE still focused on traditional marketing methods. </li></ul>Media Expenditure UAE Pan Arab Research Center 2005
  23. 23. UAE Mail Expenditure 2004 43% Increase over 2004 in UAE Direct Mailing expenditures. Direct Mailing is progressing but have not reach the desired level
  24. 24. UAE Direct Mail Expenditure Per Capita It is clear that UAE still depends on traditional marketing methods, unlike USA. Year 2005 Emirates Post, CIA- World fact book, PARC , DMA – Global Insight $14,807 GDP/ Capita $1.60 9.8 Million 4.3Million UAE DM/ Capita Direct Mail Expenditure Population Country
  25. 25. Emirates Post & EMP <ul><li>Emirates Marketing and Promotions is a totally owned company by Emirates Post </li></ul><ul><li>EMP operate in three vital areas: </li></ul><ul><ul><li>Direct Marketing </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Call Center </li></ul></ul><ul><li>Emirates Post invested in EMP for the following reasons: </li></ul><ul><ul><li>High potential of DM in the UAE </li></ul></ul><ul><ul><li>The success of the DM as a division in EP in the last few years </li></ul></ul><ul><ul><li>The industry booming in region </li></ul></ul><ul><ul><li>To enhance and create awareness for DM </li></ul></ul><ul><ul><li>The high revenue generated from the DM in other countries </li></ul></ul>
  26. 26. EMP Infrastructure <ul><li>Owning useful data </li></ul><ul><li>Printing and Fulfillment </li></ul><ul><li>Call Center </li></ul>Despite the dominance of the traditional marketing methods, EMP accepted the challenge and invested on the infrastructure of DM. Such investment covers:
  27. 27. EMP Infrastructure Data <ul><li>Data Source : </li></ul><ul><li>Availability of data sources </li></ul><ul><ul><li>Emirates Post’s internal Data </li></ul></ul><ul><ul><li>Different data sources pertaining to public information </li></ul></ul><ul><ul><li>Different data sources pertaining business information </li></ul></ul><ul><li>Database Management : </li></ul><ul><li>All data is stored in a single data base and subjected to: </li></ul><ul><ul><li>Data cleansing </li></ul></ul><ul><ul><li>P.O Box number verification </li></ul></ul><ul><ul><li>Elimination of data duplication </li></ul></ul><ul><ul><li>Data categorizing </li></ul></ul>
  28. 28. <ul><li>Currently EMP owns over 2.5 million records categorized by: </li></ul>EMP Infrastructure Data Consumers Businesses <ul><li>Emirate </li></ul><ul><li>Business Activity </li></ul><ul><li>Sub activity </li></ul><ul><li># of employees </li></ul><ul><li>Emirate </li></ul><ul><li>Area </li></ul><ul><li>Nationality </li></ul><ul><li>Age </li></ul><ul><li>Salary </li></ul><ul><li>Education Level </li></ul><ul><li>Job Designation </li></ul><ul><li>Private Address </li></ul><ul><li>Business Address </li></ul>
  29. 29. EMP Infrastructure Printing & Fulfillment <ul><li>IT infrastructure to receive and sort data as per client’s requirement </li></ul><ul><li>Design </li></ul><ul><li>Latest in laser printing facilities </li></ul><ul><li>Latest equipment to automate insertion and sealing </li></ul>
  30. 30. EMP Infrastructure Call Center <ul><li>Call Center covers : </li></ul><ul><ul><li>New call center system </li></ul></ul><ul><ul><li>More agents </li></ul></ul><ul><ul><li>Integration with Emirates Post database for online data update </li></ul></ul><ul><li>Providing telemarketing services </li></ul><ul><ul><li>Follow up service </li></ul></ul><ul><ul><li>Data validation </li></ul></ul>
  31. 31. Success Accounts <ul><li>With the developed infrastructure, EMP successfully served many prestigious customers sample of these customers are: </li></ul>Reached 2.7% Response rate <ul><ul><li>American Express </li></ul></ul><ul><ul><li>Air Miles </li></ul></ul><ul><ul><li>Henkel Arabia </li></ul></ul><ul><ul><li>Showtime </li></ul></ul><ul><ul><li>Riders Digest </li></ul></ul>
  32. 32. Conclusion – EMP Model <ul><li>Huge investment in EMP </li></ul><ul><li>A 35% increase in P.O Box stations has been achieved making it more convenient and accessible than ever before </li></ul><ul><li>Contacted over 100,000 organizations to encourage employees to have their own P.O box </li></ul><ul><li>Owns over 2.5 Million validated records </li></ul><ul><li>Ability to profile data based on demographic criteria </li></ul><ul><li>Management techniques to analyze and measure the results </li></ul><ul><li>Call center to follow up and data validation </li></ul><ul><li>Regular updates from different data sources </li></ul><ul><li>Project team established to ensure projects are completed </li></ul><ul><li>Availability of data in English and Arabic to reach all segments </li></ul><ul><li>Reached 2.7% response rate </li></ul>Emirates Post started providing support to the development of the Direct Mail industry
  33. 33. <ul><li>THANK YOU </li></ul>