Dm In Car Sector

WDM Belgium - De Post

21 October 2008

1

Agenda

� The challenges of the car industry

� The Direct Marketing opportunities :

� Some figures

� The role of Direct Marketing throughout the car purchase cycle

� The distinctive values of Direct Marketing

� The Real Cases

2

Car industry context : some facts ...

� Market :� Evolution : satisfactory growth so far but …

� Market segmentations : increased segmentations in response to more diversified life stages

� Competition : More (Asian) players � Share of voice!

� Increased quality leading to longer maintenance cycles

� More frequent model / re-styling (re-)launches � faster time to market� Dealer concentration and multi-brand dealers � who’s talking to who

� Branding : increasing sub and model-branding

� Communication : focus mainly on promotions & new model launches through mass communication

� Privacy context : the interpretation of legislation is changing

Source : Post DM Consultancy team analysis

3

Car industry context : some facts ...

� 20% of the market is B-to-B (some brands up to 80%) � identification of the driver

Source : Post DM Consultancy team analysis

4

Car industry context : some facts ...

� New concerns : � Environment

� Purchasing power

Source : Post DM Consultancy team analysis

5

Agenda

� The challenges of the car industry

� The Direct Marketing opportunities :

� Some figures

� The role of Direct Marketing throughout the car purchase cycle

� The distinctive values of Direct Marketing

� The Real Cases

6

Gross media investments

by Media Type Jan - June 2008

Direct Mail; 10,3%

Television; 34,2%Postering; 7,2%

Magazines; 8,7%

Internet; 2,8%

Regional Weeklies; 4,4%

Radio; 10,9% Dailies; 20,8%

Cinema; 0,6%

The direct marketing opportunities:some figures

Mass Media (Cim MDB-Mediaxim ): 1.560,5 Mio eur

Direct Mail (La Poste-Mediaxim ): 179.4 Mio eur

Direct Mail: 10,3%

Internet: 2,8%

7

Channel mix 2007

Content Integration; 6,8%

E-mail; 5,0%

Keyword*; 17,8%

Other; 2,7%

Display; 62,2%

Newsletter; 0,6%

E-mail represents 3,9 million €of the gross on-line investments

*Keyword = Based on declaration of Sales Houses and Agencies onlySource: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)

E-mail: 5,0%

8

Gross media investments

by Media Type Jan - June 2008

Direct Mail; 3,2%

Cinema; 1,0%

Dailies; 24,0%Radio; 12,7%

Regional Weeklies: 4,6%Internet; 4,5%

Magazines; 8,6%

Postering; 18,9%

Television; 22,5%

What is the typical media-mix for the car industry?

Internet: 4,5%

Mass Media (Cim MDB-Mediaxim ): 166,2 Mio eur

Direct Mail (La Poste-Mediaxim ): 5 Mio eur

Direct Mail: 3,2%

9

Agenda

� The challenges of the car industry

� The Direct Marketing opportunities :

� Some figures

� The role of Direct Marketing throughout the car purchase cycle

� The distinctive values of Direct Marketing

� The Real Cases

10

The role of Direct Marketing in the Consumer life Cycle: overall

VALUE

TIME

INVESTMENT

CONVERSION

GET KEEPGROWUNDERSTAND

11

Consumer Life Cycle

TIMECONVERSION

VALUE

INVESTMENT

first purchase

prospect

suspect

within dealer network

frequent dealer visits

second purchase

loyal customer

“I tell to others”

ex-klant

UNDERSTAND GET KEEPGROW

12

DM readership intensity varies according to client affinity with a car brand

52 46

17 11 134

3437

5152 49

25

106

104 7

5

47 21

2831

59

5 1 5 7

0

20

40

60

80

100

DM (n=158) E-mail (127) DM (n=158) E-mail (n=127) DM (n=158) E-mail (n=127)

%

carefully read it quickly read it keep it to read later throw it out immediately do not know

When you receive advertising mail from this sector, personally addressed to you by …, what do you do?

Source: ‘P loves E’ study by the Post ( TNS Media, 2007)

a company you arenot client from

Figures for ‘Automotive sector’

a company you areclient from

With nocompany name

13

Channels consulted for car information

Source: Three generations and their (dream)cars, WDM Belgium/Beck& X, September 2005

57 564337 333227 1613

595038271828281217

585638342230261111

565849444935282213

DealersAuto fair InternetFriends / relativesFamilyBrochures car makesSpecialised pressAutozoekertjesTest Aankoop

Totaal %Again2(51-65)%

Again(36-50)%

Be4(18-35)%

Where do people look for information?

14

Direct Marketing is a highly accepted medium

With regards to advertising in the following media, would you say there is …?

5%

4%

74%

68%

70%

71%

62%

61%

59%

44%

44%

22%

18%

20%

25%

26%

36%

37%

39%

41%

54%

77%

11%

12,10%

8,40%

0% 20% 40% 60% 80% 100%

Dm (Averages)

E-Mails (Averages)

cinema (n=678)

dailies (n=981)

magazines (n=1046)

free press (n=991)

radio (n=1058)

door-to-door (n=1149)

internet (n=747)

tv (n=1122)

not enough enough too much sticker

3%

3%

3%

2%

1%

3%

Source: ‘P loves E’ study by the Post ( TNS Media, 2007)Base:Users of each medium and give an answer

15

Are you present in the media that the consumers want?

32

22

20

19

18

14

10

5

Concessionsanimations

TV

Personalisedletter

Ads in press

E-mail ornewsletter

Unaddressedfolder

Radio

Telephone

*1=I don’t like this option at all, 10=This is the best solution

Source : Post Market research on 1.200 households, 2007

‘How do you prefer to receive information about cars?’

Rating on a scale 1 to 10*; % prefer this option (% of 8, 9 or 10)

CAR SECTOR

16

And a letter can be very useful to generate traffic

‘How do you prefer to receive invitations to dealer events?’ CAR SECTOR

71

10

8

5

2

2

2

Personalisedletter

E-mail ornewsletter

Unaddressedfolder

Ads in press

TV

Radio

Phone

Source : Post Market research on 1.200 households, 2007

17

Use of Direct Marketing in the ‘consideration process’?

CONVERSION

INVESTMENTTime for a change

First interest

Creation of ‘shopping list’

Look and inform

What do my friends think about it?

What are the test drive possibilities?

Dealer visit

Car Configurator

Test drive

What do my friends think about it?

Budget

Selling value previous car?

Negotiations with dealer

Purchase

UNDERSTAND

18

19

20

21

22

Smell

Taste

HearTouch

See

23

Use of the Direct Marketing in the ‘sales process’?

PurchaseWaiting for delivery

Take away new car

‘Thrill’ of the new car

Show the new car to friends

Get used to the new car

Discover the new car

Justify purchase

First long ride

First maintenance

Second maintenance

GET

24

Use of Direct Marketing in the ‘loyalty process’?

Second maintenance

First anniversary of the car

Maintenance

Purchase after sales articles

Second anniversary of the car

Maintenance

Third anniversary

Maintenance

Car is comfortable but no longer new

GROW

25

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXX

26

27

28

Avoiding churn with Direct Marketing?

Car is comfortable but no longer new

Look around for other car brands and models

End of the (leasing) contract

Time for a change

New cycle starts

KEEP

29

XXXXX

XXXXXX

30

Agenda

� The challenges of the car industry

� The Direct Marketing opportunities :

� Some figures

� The role of Direct Marketing throughout the car purchase cycle

� The distinctive values of Direct Marketing

� The Real Cases

31

The distinctive values of Direct Mail: selectivity

High

Low

Low High

Selectivity

Involvement

Source: Post DM Consultancy team

E-mail

Addressed

Distripost

BD

32

33

34

XXXXXXXXX

35

200 TV ads

150 radio ads1000’s of ambient ads ...

Weekly number of advertising messages per capita

20 e-mail ads

3 cinema ads

400 press ads/inserts

350+ outdoor ads

2+ DM pieces

Opportunity for Direct !

Source: Mindshare - Henley Centre (and TNS Media & Post survey)

Consumers are “bombed” by a few 1000 mass messages every week

The distinctive values of Direct Mail: impact

36

97% opens

mailbox every day

… but receives only 2

DM/ week

78% is opened

Consumersspend

1’52’’ per mail

… and behind every letterbox

is a unique person

you can target

The strength of direct mail, the MAIL MOMENT…

37

Brand perception

Sales activation

Boosting of ROI

Loyalty building

DM is a strong sales activator

Integrated with other media DM increases the ROI of your

campaigns with at least 20%

DM builds strong long term relations with your customer

DM improves brand perception

High recallrate

DM gets high recall rates even of complex messages

1 2 3 4

5

The distinctive values of Direct Mail: measurability

15% to 200% extra sales >25% more

loyal customers

Source: Post – 15 DM pilot surveys N: > 25.000

2 to 20 times better recall

>50% of brand attributes

improved

38

Agenda

� The challenges of the car industry

� The Direct Marketing opportunities :

� Some figures

� The role of Direct Marketing throughout the car purchase cycle

� The distinctive values of Direct Marketing

� The Real Cases

39

Cases

� Toelichting bij ‘involve’, het relatieprogramma van Volvo� Ward Van Rijckeghem (Volvo )

� Comment le Fusion Marketing, par l’intégration des médias online et offline, réduit la distance entre marque et consommateur� Emmanuel Scheenaerts (Peugeot ) & Laurent Van Duyse (Wanabe )

� Comment le DM peut augmenter la tentabilité lors du lancement d’un nouveau modèle� Claire Normand-Loya (La Poste Française )

� (On-line) magazines: efficiënte loyalty tools in de automobielsector� Michel Libens (Propaganda, voorzitter Custo ) & Anne Thys (Headline )

� Questions légales propres au secteur automobile� Dominique Pissoort (WDM Belgium )

40

E-mail Physical mail

■ Easy to react, to get information

■ Cost

■ Can be set up quickly ■ Personalisation

■ Measurability

■ Short messages

■ Can be surprising and original

Advantages

■ Appreciated – not intrusive

■ Targeting

■ Sales Activation■ Acquisition

■ Complex information

■ High opening and reading rate

When touse ?

■ Own list

■ Newsletters ( top of mind )■ Punctual Information & more

frequent use

■ Generate traffic on website■ Lead generation

■ To promote image & brand value

■ Involving, captures attention■ Giving useful, detailed trustworthy

information

■ Call to action (vouchers)■ Magazines

Conclusion: the key assets of 121 communication

41

More information?

Cécile Jacquescecile.jacques@post.be

02/276.30.42

www.denkdm.be / www.pensezdm.be

Natalie Versluys

nvs@wdmbelgium.beO2/555.96.88

www.wdmbelgium.be