Direct mail market Eastern Europe

1
Direct mail marketEastern Europe CIScountries

• Oxana G. Kucheriavaya
• Russian Post
• Berne, 11 October, 2005

2
Direct mail development in Eastern Europe and CIS
countries
DM mailings, per person, per year, 2001
Lithuania
Russia
Poland
Latvia
Slovakia
Hungary
Czech Republic
Countries with the lower level of direct mail
development have growth rates more than 20 per
year
Growth rates of DM mailings, per person, per
year, 2000-2004 Percents
52
19
No data
No data
Czech Republic
Lithuania
Russia
Poland
Latvia
Hungary
Slovakia
Including adressed and
non-adressed mailing, 2001 (except Russia, 2003)
3
DM markets growth in Eastern Europe and CIS
countries
Mln items
DM market growth in Poland
DM market growth in Czech Republic
1998
1999
2000
2001
2002
2003
2004
1998
1999
2000
2001
2002
2003
2004
DM market growth in Latvia
DM market growth in Lithuania
1998
1999
2000
2001
2002
2003
2004
1998
1999
2000
2001
2002
2003
2004
4
Direct marketing expensesas compared with
classic marketing, mln. EUR, 2002
Source FEDMA
5
Charges for direct mail delivery
Delivery, 4000 items, 20 gr. Costs per unit, EUR
6
Availability of address databases
7
Response level
- low
-medium
- high
Russia has huge potential as well as high risks
8
DM market in Russia
Example
Market volume 1425 million of addressed and
unaddressed items
Average share of direct mail in big cities
Direct mail correspondence within the whole
stream of addressed correspondence,
Russian direct mail market is growing rapidly
up to 30-50 direct mail items per person by
2008 in comparison with 10 items in 2003.
9
Russian DM marketgrowth potential
Share of DM expenses in total advertising
expenses Percents
Dependence of DM application on volume of GDP
per person Mailings per person
Czech Republic
Czech Republic
Poland
R2 0,6859
R2 0,6804
Russia, 2008
Hungary
Hungary
Slovakia
Russia, 2008
Slovakia
Latvia
Russia
Poland
Lithuania
??????
GDP per person,
GDP per person,

• Level of DM development in Russia is actually
  lower than this one in countries with compatible
  income per person
• Taking into consideration expected GDP growth,
  the potential of Russian market in 2008 is.
• 70 DM mailings per person per month (2003 10)
• Share of DM in advertising expenses 20-25 (2003
  6)

Including adressed and
non-adressed mailing
10
Russian Post at a glance
Example

• 81 Enterprises of federal postal service
  branches of FSUE Russian Post
• 41 400 postal outlets all over Russia
• more than 330 000 employees
• Delivery of 1.2 billion of letters, 3 billion of
  printed matters, 13.1 million of parcels ? 73.8
  million of money orders

11
Russian practicemarketing researches
Example
What is the total volume of delivery per year?
More than half of companies send out more than
300 letters per year
???????????? ?????? ???????? 407
12
Research results
Example
What is the total volume of delivery per year?
???????????? ?????? ???????? 407
13
Research results
Example
What are changes in volume of delivery for the
last 12 months in comparison with the prior
period?
???????????? ?????? ???????? 407
14
Research results
Example
What kind of materials does your company send?
???????????? ?????? ???????? 407
15
Research results
Example
Who is your addressee?
???????????? ?????? ???????? 407
16
Research results
Example
Where does your company send materials?
???????????? ?????? ???????? 407