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“Direct Mail: looking back to see forward – regional trends, regional approach” Presented by: Mr. Mazen Dakak Asst. Chief Executive Officer Emirates Marketing and Promotions
“Direct Mail: looking back to see forward – regional trends,
regional approach”
Presented by: Mr. Mazen DakakAsst. Chief Executive Officer Emirates Marketing and Promotions
Contents:Contents:
• The Middle East DM Marketplace
• Fact Factors In The ME
• ME Trends – Opportunities and Barriers
• DM Development In The ME
• EMP Model
Population 312 MillionGDP $2.3Trillion, GDP/Capita $7371.7
League Of Arab States Middle East (22 Countries)
Gulf Countries:UAEKSAQatarOmanBahrainKuwaitAfrican Countries :AlgeriaMoroccoTunisiaLibyaEgyptSudanSomaliaDjiboutiComorosMauritania
Other Arab Countries :Lebanon SyriaJordanPalestineYemenIraq
CIA – World Factbook, UAE Ministry of Planning
People & Economy
Population in Million
4 2
24
1 1 3
25
19
64
18
4
75
610
33 32
3
38
1
8
0
10
20
30
40
50
60
70
80
UA
E
Ku
wai
t
Sau
di
Ara
bia
Bah
rain
Qat
ar
Om
an
Iraq
Yem
en
Jord
an
Leb
ano
n
Syr
ia
Wes
t B
ank
&G
aza
Str
ip
Eg
ypt
Lib
ya
Tu
nis
ia
Alg
eria
Mo
rocc
o
Mau
rita
nia
Su
dan
Dji
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ia
312 million is the total population of the 22 countries62.2 % of the total population is in the age group of 15 – 64 years old Source: World Bank, CIA World Fact Book, UAE Ministry of Planning 2005
Source: World Bank, CIA World Fact Book, UAE Ministry of Planning 2005
People & Economy
GDP per Capita in US$
22,000
15,000
10,500
14,000
21,500
8,300
2,400840
4,3005,400
3,500
700
3,900
7,6006,500
5,3003,900
1,900 1,420 1,300550
0
5,000
10,000
15,000
20,000
25,000
UA
E
Ku
wai
t
Sau
di
Ara
bia
Bah
rain
Qat
ar
Om
an
Iraq
Yem
en
Jord
an
Leb
ano
n
Syr
ia
Wes
t B
ank
&G
aza
Str
ip
Eg
ypt
Lib
ya
Tu
nis
ia
Alg
eria
Mo
rocc
o
Mau
rita
nia
Su
dan
Dji
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US $ 2.3 Trillion is the total Arab League GDP – Purchasing Power ParityUS $ 49.0 Trillion is the total World GDP – Purchasing Power Parity
Expenditure in Million US $
Others, 25.7, 1%
GCC, 1999.3, 43%
Levant, 796, 17%
Pan Arab, 1779,39%
$4.6 Billion is the total Expenditure43% contributed by the GCC
Advertising ExpenditureMiddle East
Pan Arab Research Center 2005
2167
1701
464
92 164
12
0
500
1000
1500
2000
2500
TV Newspappers Magazines Radio Outdoor Cinema
Figures are in Million US$
TV Newspappers
Magazines Radio
Outdoor Cinema
47% of media expenditure is dominated by TV36% of media expenditure is dominated by newspapers
Media ExpenditureMiddle East
Pan Arab Research Center 2005
ME Mass Communication Facts
Source: World Bank, CIA World Fact Book 2005
18,461,311
5,555,528 5,332,000
561 490
0
3,500,000
7,000,000
10,500,000
14,000,000
17,500,000
21,000,000
Tel. Lines Mobile Lines Internet Users Radio Stations TV BC Stations
9% of ME Population is connected through Mass Communication Modes
Fact Factors In The ME
• Economic growth 3-10 times in the ME than US
• 9% of the Middle East Population can only be reached through the
mass communication modes i.e. telephones, mobiles, internet, TV
and radio.
• The world changes and many businesses established themselves in
the global space
• Middle East region is in Embryonic stage with DM evident by media
expenditure trends.
• Media spend set to continue growing by 41% per annum
Fact Factors In The ME
• Level of appreciation of DM differs from country to country
• Absence of the awareness of the DM
• No long term DM strategies at the regional level to realize the
untapped potential in region
• Absence of research & studies
• Research conducted in the Region / Middle East is owned by private
entities i.e. not published.
• 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
OPPORTUNITIES
• Middle East huge market with high purchasing powers.
• High Revenues could be generated from DM.
• Direct Mail has cut through (reached people)
• Consumers enjoy Direct Mail more.
• Direct Mail delivers on the consumer’s desire for control.
• People of the Middle East respond to DM greatly due to lower mail
per capita.
• 2.7 Billion Mail items per capita in the middle east
OPPORTUNITIES
• Direct Mail works in more areas than one (loyalty programs,
financial info, promotions, new product announcement, info at work
and home).
• Effectiveness of Direct Mail under estimated. Effectiveness of TV
over estimated.
• Unaddressed mail. The big surprise in response rate.
• Business people respond to and prefer Direct Mail.
• DM in the west US
– Very profitable – high revenue
– High growth rate in the next 3 years
BARRIERS
• Lack of Information on Database & Database Management
specifically addressing the Region / Middle East.
• Weak database and data validation
• Lack of clean mailing address sources in the Middle East.
• Lack of published consumer behavior and lifestyle researches
& studies in the Middle East.
• The absence of Response management techniques
• Establish a Direct Marketing Association for the Middle East responsible for:
– Formulating long term DM strategies at the regional level
– DM research & studies
– Co-ordination between DM association and postal authorities for
Direct Marketing advantages
DM Development In The ME
DM Development In The ME
As Direct Mail in the West (US) is very effective and
lucrative, the way forward in the Middle East is to:
• Replicate the western experience in DM with a tailor-
made approach for the Middle East consumer
Adopt global best practice in direct marketing with some modifications to meet the local environment.
• Improve servicing of the industry by:
– Providing more P.O. Box stations for easy access
– Encouraging the usage of personal P.O. Boxes
– Leveraging the Postal infrastructure like:
• Monitoring RTS mail related to Direct Marketing• Improving response management techniques• Make data more accessible
DM Development In The ME
• Adopt the latest technology to:
– Improve accuracy of databases for better response rate per
campaign
– Install, add, amend, delete and manage Databases effectively
– Enable strategic channeling – building profiles for focused
campaigns to targeted audiences
– Reduce RTS to less than 1% by internal validation of P.O Box
numbers.
– Fulfill Direct Marketing projects according to set project plan
• Insure mail delivery within 2-3 days
• Build Call Center to update data and to provide service and support to
direct marketers
• Integrate Direct Marketing with multi-channel campaigns
DM Development In The ME
DM Development In The ME
• Coordination with the rest of the Arab League States for joint DM
efforts and sharing of information.
• To sponsor an independent research study into business
people’s and consumers attitude to different marketing media
• Diversifying marketing strategy to embrace DM is essential to
maintain competitive edge
• More educational DM seminars and workshops required
• More published articles, features and case studies of successful
DM campaigns
• Co-ordination with local colleges to develop DM
EMP Model
Agenda
• DM Facts in UAE
• Emirates Post & EMP
• EMP Infrastructure
• Success Accounts
• Conclusion
Figures are in Million US$
Oman4%
Kuw ait19%
UAE32%KSA
34%
Qatar5%
Bahrain6%
UAEKuwaitBahrainQatarOmanKSA
$3.8 Billion is the total expenditure in GCCUAE, being the second highest contributor after KSA, provides us with the right platform to initiate our entry into The Direct Marketing Industry
Advertising ExpenditureGCC
Pan Arab Research Center 2005
345
122 111
3413 7
0
50
100
150
200
250
300
350
New sPaper
TV Magazines Outdoor Radio Cinema
Figures are in Million US $
New s Paper
TV
Magazines
Outdoor
Radio
Cinema
• 41% increase over year 2004 in media expenditure• UAE still focused on traditional marketing methods.
Media ExpenditureUAE
Pan Arab Research Center 2005
UAE Mail Expenditure 2004
43% Increase over 2004 in UAE Direct Mailing expenditures.Direct Mailing is progressing but have not reach the desired level
6.90
9.8
43%
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2004 2005 Increase
2004
2005
Increase
UAE Direct Mail Expenditure Per Capita
Country PopulationDirect Mail
ExpenditureGDP/ Capita DM/ Capita
UAE 4.3Million 9.8 Million $14,807 $1.60
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
Emirates Post & EMP
• Emirates Marketing and Promotions is a totally owned
company by Emirates Post
• EMP operate in three vital areas:– Direct Marketing
– Promotions
– Call Center
• Emirates Post invested in EMP for the following reasons:– High potential of DM in the UAE
– The success of the DM as a division in EP in the last few years
– The industry booming in region
– To enhance and create awareness for DM
– The high revenue generated from the DM in other countries
EMP Infrastructure
• Owning useful data
• Printing and Fulfillment
• Call Center
Despite the dominance of the traditional marketing methods, EMP accepted the challenge and invested on the infrastructure of DM.
Such investment covers:
EMP InfrastructureData
Data Source:
• Availability of data sources
– Emirates Post’s internal Data
– Different data sources pertaining to public information
– Different data sources pertaining business information
Database Management:
• All data is stored in a single data base and subjected to:
– Data cleansing
– P.O Box number verification
– Elimination of data duplication
– Data categorizing
Currently EMP owns over 2.5 million records categorized by:
Consumers Businesses
EMP InfrastructureData
Emirate
Business Activity
Sub activity
# of employees
Emirate
Area
Nationality
Age
Salary
Education Level
Job Designation
Private Address
Business Address
EMP InfrastructurePrinting & Fulfillment
• IT infrastructure to receive and sort data as per
client’s requirement
• Design
• Latest in laser printing facilities
• Latest equipment to automate insertion and sealing
EMP InfrastructureCall Center
• Call Center covers:
– New call center system
– More agents
– Integration with Emirates Post database for online data update
• Providing telemarketing services
– Follow up service
– Data validation
Success Accounts
With the developed infrastructure, EMP successfully served many prestigious customers sample of these customers are:
Reached 2.7% Response rate
– American Express– Air Miles– Henkel Arabia– Showtime– Riders Digest
Conclusion – EMP Model
• Huge investment in EMP
• A 35% increase in P.O Box stations has been achieved making it more convenient and accessible than ever before
• Contacted over 100,000 organizations to encourage employees to have their own P.O box
• Owns over 2.5 Million validated records
• Ability to profile data based on demographic criteria
• Management techniques to analyze and measure the results
• Call center to follow up and data validation
• Regular updates from different data sources
• Project team established to ensure projects are completed
• Availability of data in English and Arabic to reach all segments
• Reached 2.7% response rate
Emirates Post started providing support to the development of the Direct Mail industry
THANK YOU
