DMAB Plenary Meeting

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• DMAB Plenary Meeting
• 22. October 2003

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A brief introduction of the Buhrs GroupOur
views on some interesting developments in the
Postal Industry in Western Europe - direct mail
facilitating postal growth
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Agenda

• Brief introduction of the Buhrs Group
• Relevant developments in the direct mail postal
  industries in Western Europe
• How Direct Mail is facilitating Postal growth?
• Conclusion

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Development of the Buhrs Group
Osaka 2002 Buhrs Japan KK, Osaka office
Utrecht 2000 Buhrs-Fulfillment Systems BV
Shanghai 2000 Buhrs Asia Pacific BV
Enger 2000 Betron GmbH Co. KG
Kuala Lumpur 1997 Buhrs Asia Pacific BV
Frankfurt 1996 Buhrs-Media Craft GmbH
Kongsberg 1996 Buhrs-Media Craft AS
Löhne 1995 Buhrs-ITM GmbH
Paris 1994 Buhrs France SNC
Yokohama 1994 Buhrs Japan KK
Minneapolis 1994 Buhrs Americas Inc.
Zaandam 1993 Buhrs-Zaandam BV
Rotterdam 1993 Buhrs Holding BV
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Buhrs at a glance

• Founded in 1908 in the Netherlands
• More than 90 years of experience as a solution
  provider
• World leader in mailing and fulfillment solutions
• More than 370 international professionals
• Presence in more than 40 countries in all
  continents
• Large installed base with more than 3,500 systems
• Worldwide Sales, Service and Distributors network
• Strong partnership with leading technical
  universities
• Over 200 new installations each year

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Mission of the Buhrs Group

• We want to continuously strengthen our position
  as the preferred partner for mailing and
  fulfillment solutions.

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Media products and Buhrs Systems
Magazines
MEDIA PRODUCTS
Newspapers
Addressees
Books
Computer output
Direct mailing material
Gifts
Videos
CDs
Retailers
CD-roms
Credit cards
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Buhrs complete range of systems
MEDIA PRODUCTS
Film and Paper Wrapping Systems Addressing
systems Inserting Systems
Buhrs-Zaandam BV
Buhrs-ITM GmbH
Envelope Inserting Systems
Buhrs-Fulfillment Systems BV
Intelligent Boxing Systems
Buhrs-Media Craft AS
Press Distribution Systems Return Systems
Buhrs Net
Buhrs NeuroCheck Camera System
Betron GmbH Co. KG
Buhrs System Controller
Software
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Some postal developments in Western Europe with
relevance for the Mailing Industry

• Monopoly of Postal Organisations falling, e.g. in
  Germany every thing above 100 grams can be
  distributed by 3rd parties
• City posts are developing
• Monopoly will fall completely by 2007
• Postal Organisations are aggressively attacking
  distribution of non-addressed promotional mail
  retail brochures - this might speed up process of
  falling of the monopoly
• TPG (Dutch Post) has been acquiring companies to
  build up infra structure in countries outside The
  Netherlands
• Deutsche Post is also expanding its
  international PM and Distr. activities to stay
  ahead of TPG
• Growth of direct mail volumes

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Distribution of non-addressed promotional mail by
Postal Organisations

• What is distribution of non-addressed promotional
  mail? A definition
• Distribution of non-addressed promotional mail
  door-to-door distribution of non-addressed sets
  of (retail) brochures, composed selectively based
  on demographic information per zone (e.g.
  zip-code based)
• Key terms door-to-door distribution,
  non-addressed, sets, brochures, zoned

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Distribution of non-addressed promotional mail by
Postal Organisations

• Samples

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Distribution of non-addressed promotional mail by
Postal Organisations

• Why are Postal Organisations getting into
• distribution of non-addressed promotional mail?
• To optimise the utilisation of existing
  distribution networks
• To grow their business across borders
• To develop a distribution network across borders

In short To grow their business!
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Distribution of non-addressed promotional mail by
Postal Organisations

• What makes distribution of non-addressed
• promotional mail a challenge for postal
  organisations?
• Good distribution network
• Zoned distribution for optimal effect of DM
  message
• Motivated deliverers - high quality deliveries
• DM products with attractive looks - high
  quality packaging

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Developments in the mailing industry
Direct mail facilitating postal growth

• Number of loyalty programs is growing fast
• More and more often Transactional Mail (TM) and
  Direct Mail (DM) are merged/combined into one
  envelope - TM is used as a carrier for DM
• DM initiates/generates TM
• DM generates reply mail
• More and more mail generators are outsourcing the
  printing and mailing processes to specialists

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Changing requirements of large mail generators
Direct mail facilitating postal growth

• Utilise the mail-pieces that HAVE TO be sent
  anyway to promote other products services - TM
  as a carrier for DM
• Differentiating your product starts with
  differentiating the related mail-pieces -gt more
  creative looks and packaging
• Lead times of mailings shorten -gt one-stop-shop
  for printing mailing
• More targeted mailings
• One database for both TM and DM

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Direct mail facilitating postal growth
Print DM
Insert into envelope
Database
Print bill
distribution
Reply by e-mail / fax / letter / telephone
Messenger
Recipient
Packaging distribution
Warehouse / Fulfillment
shop
facilitating postal growth
requiring efficient operations / Buhrs solutions
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Direct mail facilitating postal growth

• Opportunities for Postal Organisations
• Promote Direct Mail - special rates for
  (pre-sorted) Direct Mail
• Offer Direct Mail services - print mail,
  re-mail, co-mailing
• Offer Distribution services for non-addressed
  promotional mail

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Conclusion

• Both addressed (personalised) and non-addressed
  direct mail are facilitators for postal growth!!

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• Any questions??

• Buhrs Mailing Solutions
• Jan Clement, MBA
• Director Sales Marketing
• itm.marketing_at_buhrs.com
• www.buhrs.com

Thank you for your attention!