Tiziana Palmieri

1
DIRECT MAIL IN ITALY AND ITS FUTURE TREND

• Tiziana Palmieri
• 22 October 2003, Bern

2
AGENDA

• Background
• Italian Direct Mail Market
• Poste Italianes Direct Mail Products
• Domestic Product Portfolio
• International Product Portfolio

3
AGENDA

• Background
• Italian Direct Mail Market
• Poste Italianes Direct Mail Products
• Domestic Product Portfolio
• International Product Portfolio

4
DRIVERS OF CHANGE

• Direct Mail expenditure is generally affected by
  several drivers
• Economic context
• Demographic trends
• Legal environment
• ICT advances
• Recipients attitudes

What is happening in Italy?
5
ITALIAN ECONOMIC AND DEMOGRAPHIC CONTEXT

• Economy
• Economic downturn in 2003 (real GDP 0.4, Export
  1.2)
• Recovery foreseen in 2004 (real GDP 1.7, Export
  6.2)
• Population
• Positive population growth rate in 2003 (0.11)
  due to a positive net migration rate (negative
  rate of natural increase)
• Positive forecast up to 2010 0.1 per year

Source IMF
Source CIA
Source US Census Bureau
6
ITALIAN LEGAL ENVIRONMENT

• Act 675/96 on the Protection of Individuals and
  Legal Persons Regarding the Processing of
  Personal Data pursuant to European Data
  Protection Directive
• Strict restrictions on the gathering and use of
  personal information opt-in mechanism
• Processing of personal data revealing racial or
  ethnic origin, political opinions, religious or
  philosophical beliefs, religious, party or trade
  union membership, as well as the processing of
  data concerning health or sex life is prohibited,
  unless with the consent of the data subject

7
ICT IN ITALY

• Internet
• 38 of Italian population were internet users in
  2002 (30 in 2001)
• Internet penetration growing but still less than
  European avg (46)
• e-Mail messages
• 70 billion e-mail messages in 2002 (180 million
  messages sent daily) a quarter more than in
  2001 (55 billion)
• 89 of e-mail sent by business users
• B2C communication less likely to be affected by
  e-substitution

Source Taylor Nelson
Source Netscalibur
8
ITALIAN RECIPIENTS ATTITUDES

• Perceived advantages of Direct Mail over
  Publicity on TV

• It is not intrusive 49
• It is comfortable 20
• It gives plentiful information on advertised
  products/services 19
• It is customised and direct 14
• It is effective 10
• You can answer suddenly 10

• It is not intrusive 49
• It is comfortable 20
• It gives plentiful information on advertised
  products/services 20
• It is customised and direct 13
• It is effective 11
• You can answer suddenly 10

target consumer
target business
Source PeopleSWG, 2002 Survey carried out on
behalf of Poste Italiane
9
AGENDA

• Background
• Italian Direct Mail Market
• Poste Italianes Direct Mail Products
• Domestic Product Portfolio
• International Product Portfolio

10
DIRECT MAIL EXPENDITURE IN ITALY
Million
18
69
Data Protection Act
Sources AIDiM - FEDMA
11
RELEVANCE OF DIRECT MAIL

• Increasing share of traditional advertising

Sources AC Nielsen - FCP/FIEG - AIDiM

• Internet advertising (100 Million in 2003)
  above the European average and not expected to
  rise over the next few years

Source ZenithOptimedia
12
POTENTIAL IN DIRECT MAIL MARKET
Sources FEDMA - McKinsey - CIA World Factbook
13
AGENDA

• Background
• Italian Direct Mail Market
• Poste Italianes Direct Mail Products
• Domestic Product Portfolio
• International Product Portfolio

14
POSTA TARGET
Created in January 2002 to deliver promotional,
publicity and information mailings even in non
standard formats, with a minimum of 1000
identical items discounts available from min.
10.000 items per single mailing and per customer
Easy and flexible, Postatarget leaves you free
to be creative and enables every kind of
personalisation you can enclose cards, gadgets
trade samples discount vouchers, catalogues or
brochures
15
PROMOPOSTA
Created in April 2003 to dispatch unadressed
advertising items or free samples in one or more
ZIP Code areas It is a Direct Marketing tool
used to reach a geographical area unexpensively
and in a widespread way, in order to win new
potential customers 
16
PROMOPOSTA

• It provides a wide range of value-added services
• Creation and printing
• Transport
• Delivery
• Geomarketing studies (families/business)
• Activities reporting
• Controls to check delivery

17
AGENDA

• Background
• Italian Direct Mail Market
• Poste Italianes Direct Mail Products
• Domestic Product Portfolio
• International Product Portfolio

18
PRODUCT AND SERVICES FOR BUSINESS CUSTOMERS

• Customised solutions and value added services
• PREMIUM mail
• ECONOMY mail
• IDM
• DIRECT ENTRY
• M BAGS premium and economy service
• INTERNATIONAL BUSINESS REPLY SERVICE (IBRS)

19
PRODUCT POSITIONING

PREMIUM mail
ECONOMY mail
Price to Customer

IDM
DIRECT ENTRY
-
-
Simplicity

20
PREMIUM mail ECONOMY mail

• PREMIUM mail is for fast mailings and ECONOMY
  Mail is for low cost mailings
• You can send business or promotional messages,
  magazines, packets, books, mail-order catalogues,
  leaflets and general communications for the
  spread of social, political, cultural and
  economical subjects
• Each mailing must have the same sender, consist
  of at least 500 items, be exactly alike in
  weight, format and contents but can be addressed
  even to different countries

21
IDM INTERNATIONAL DIRECT MAIL

• IDM suits particularly those companies wishing to
  develop their business in foreign markets at
  reasonable prices and with easy working
  procedures
• Each mailing must be made of at least 500 items
  for each country of destination, having the same
  sender, weight, size and contents, and being
  addressed to different receivers
• The service is available for the following
  countries DK FI, GR, SE and CH
• The delivery time is 5 working days from that of
  posting (j5)

22
DIRECT ENTRY

• DIRECT ENTRY is a preferential channel providing
  big customers with access to the whole range of
  the domestic products of the destination country
• Perfect for large amounts of advertising, this
  service provides favourable tariffs and
  solutions, as well as the same reductions offered
  in the country of destination
• By choosing the domestic look of the country of
  destination, you can send letters or business
  messages to your customers abroad as though they
  were sent from their own country, with the
  possibility of returning the undelivered items
  directly to your branch abroad, without making
  use of your Italian address

23
INTERNATIONAL BUSINESS REPLY SERVICE (IBRS)

• By IBRS you can provide your foreign customers
  with the chance of answering your business
  communications using a pre-paid letter or card
• This service of response from abroad represents
  the perfect crowning of IDM, PREMIUM, ECONOMY and
  DIRECT ENTRY
• IBRS makes the mail-order selling easier and
  complete. It allows the addresses abroad to
  answer the sender easily, thanks to an already
  franked and addressed paper