FMCG direct mail pilot drives sales and brand perception

Capturing the Full Potential of Direct Mail – Pilot results in FMCG sector La Poste / De Post CONFIDENTIAL IS-04

CAVEAT ,[object Object],[object Object]

FMCG PILOT CAMPAIGN AND MARKET RESEARCH SETUP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],DISGUISED CLIENT EXAMPLE IN FMCG SECTOR Campaign goals Target customers Accompanying media Market research

KEY MESSAGES ,[object Object],[object Object],[object Object],[object Object]

PURCHASE FUNNEL FMCG sector – Brand 1 Percent of respondents Source: Market research, 2005; Team analysis Purchase funnel 92.1 89.4 98.6 62.9 92.3 87.6 100 49.4 ,[object Object],[object Object],Media received 94.5 59.4 90.8 44.8 99.5 97.0 96.9 94.9 97.5 97.9 88.1 87.6 Series of direct mails drives higher regular use (+27%) and ultimately customer loyalty (+33%) DISGUISED CLIENT EXAMPLE IN FMCG SECTOR Awareness Familiarity Consideration Trial Regular use Loyalty 56.4 71.3 Main impact of Direct mail Main loss in conversion

PURCHASE FUNNEL FMCG sector – Brand 2 (Personal care) Percent of respondents Purchase funnel 87.1 71.9 72.5 52.2 93.7 48.8 21.5 87.9 68.0 68.3 46.5 89.3 41.5 14.7 43.8 35.5 82.6 77.4 Series of direct mails drives higher regular use (+46%) DISGUISED CLIENT EXAMPLE IN FMCG SECTOR ,[object Object],[object Object],Media received Source: Market research, 2005; Team analysis Awareness Familiarity Consideration Trial Regular use Main impact of Direct mail Main loss in conversion

PURCHASE FUNNEL FMCG sector – Brand 3 Percent of respondents Purchase funnel 91.7 92.4 84.7 57.0 86.9 49.5 25.2 88.9 95.7 85.1 45.3 89.8 40.7 15.3 95.5 24.1 100 15.3 37.6 50.9 53.2 67.3 DISGUISED CLIENT EXAMPLE IN FMCG SECTOR ,[object Object],[object Object],Media received Series of direct mails drives higher consideration (+26%), regular use (+65%) and ultimately customer loyalty (+58%) Source: Market research, 2005; Team analysis Awareness Familiarity Consideration Trial Regular use Loyalty Main impact of Direct mail Main loss in conversion

BRAND ASSOCIATIONS PER MEDIA GROUP FMCG sector – Brand 1 Series of DM (>5 over 2 years) Control group (no DM) 'To which extend do you agree with the following statements concerning this brand? Rating on a scale 1 to 10*; % Agree completely or to great extend (% of score 8 to 10) * 1: I completely disagree, 10: I completely agree, intermediate scores are used to qualify score Source: Market research, 2005; Team analysis Makes my life easier Has modern and attractive packaging Is an innovative and modern brand Is convenient to use Is dedicated to continuously improve its products Offers a complete range of products to deliver the best results for each need Is an expert in its field Really cleans DISGUISED CLIENT EXAMPLE IN FMCG SECTOR Series of Direct mails significantly improve perception on brand attributes

BRAND ASSOCIATIONS PER MEDIA GROUP FMCG sector – Brand 2 (Personal care) Has attractive packaging Is an authentic brand Is available for acceptable price Is a pleasure to use Really improves the condition and feel of hair and skin Is soft Has been dermatologicaly tested – PH neutral Keeps promises 'To which extend do you agree with the following statements concerning this brand? Rating on a scale 1 to 10*; % Agree completely or to great extend (% of score 8 to 10) * 1: I completely disagree, 10: I completely agree, intermediate scores are used to qualify score Source: Market research, 2005; Team analysis Series of Direct mails improve perception on brand attributes DISGUISED CLIENT EXAMPLE IN FMCG SECTOR Series of DM (>5 over 2 years) Control group (no DM)

COUPONS RECALL AND USAGE WITH AND WITHOUT DIRECT MAIL Percentage of respondents Coupons recall Received last Direct mail with coupons Received addressed coupons only Intention to use coupons +50% +48% DISGUISED CLIENT EXAMPLE IN FMCG SECTOR Direct mail drives coupon recall rate (+48%) and intention to use coupon (+50%) Source: Market research, 2005; Team analysis

DIRECT MAIL FUNNEL Percentage of respondents DM funnel 100 76 83 92 70 83 91 100 66 69 95 64 69 97 Source: Market research, 2005; Team analysis Immediate (short term) effect of Direct mail DISGUISED CLIENT EXAMPLE IN FMCG SECTOR ,[object Object],[object Object],[object Object],Received last direct mail 1 week ago Received Direct mail Recall Direct mail Opened Direct mail Read Direct mail Received last direct mail 4 month ago

PREFERENCES FOR WEBSITE VS DIRECT MAIL, FOR CUSTOMERS WHO VISITED WEBSITE AND READ DIRECT MAIL Percentage of respondents who received Direct mail or coupons with referral to website, both visiting website and reading Direct mail I prefer paper Direct mail above website I use website as a complement to paper Direct mail Website is good substitute to Direct mail Somewhat applies Applies completely Source: Market research, 2005; Team analysis ,[object Object],[object Object],[object Object],[object Object],DISGUISED CLIENT EXAMPLE IN FMCG SECTOR

FMCG direct mail pilot drives sales and brand perception

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