Direct marketing in Russia: current situation and prospects

1
Direct marketing in Russia current situation
and prospects

• ????, 2004

2
Workshop Direct Mail Market Development in
Russia

• The Workshop was held in 19 - 21 November, 2002,
  supported by UPU and Russian Post
• Goals of the workshop
• Direct mail market development assistance
• Estimate of the market current condition,
  problems, development prospects
• Development of the strategic plan for developing
  the market

3
Action plan for direct mail market development

• Action plan was developed in the framework of the
  Direct Mail Market Development Workshop (2002)
• Action plan
• To develop postal reform in Russia
• To develop an educational program for DM players
• To develop legislation in DM sphere (especially
  for a data-bases)
• To foster customer loyalty to DM
• To expand DMA representation to include all
  stakeholders (including Post and end-users)

4
The outcome of the Workshop

• Direct Mail Market Development Workshop gave an
  impulse for DM development
• In 2002-2003 the following steps was fulfilled in
  the framework of the action plan
• The 1st stage of the postal reform is underway
• Rapid development of mail-order trade
• The workshops on DM development and III
  Conference DIRECT MARKETING. XXI CENTURY were
  organized and successfully held
• The program for training of specialists for DM
  market was adopted (jointly with Novgorod State
  University)
• Reference book DM companies in Russia was
  prepared
• The main standards for data-bases design were
  worked out
• Expansion DMA representation (regional companies
  included)
• International business contacts were established
  and developed

5
Estimate of the consumer market in Russia
Russian companies are roughly developing in the
consumer market, at the same time multinational
companies are entering the market.
6
Advertising market development in Russia
Growth of advertising services market - 40-45
annually (according to Russian Association of
Advertising Agencies official report ).
7
DM market current situation
DM market is growing with a forward rate annual
rate of growth amounts to 50-55 per year, the
market share in advertising services market is
6,3.
8
DM market structure
Usage of postal technologies
9
Direct mail in Russia market volume estimate
The estimate of the experts of the Russian Post
(mln. mailings per year)
Forecast moderate market growth 25 per year
Forecast intensive market growth 70 per year
10
Direct mail market clients
70
30
11
Russian Post meeting customer needs

• Restructuring of the Russian Post
• Unification of many federal postal organizations
  within FSUE Russian Post
• Centralization of management of federal postal
  network
• Assuring high-quality universal postal services
• Realization of new projects on unified postal
  logistic system development
• Design of automated sorting center
• Creation of modern postal infrastructure
• Meeting customer needs
• Expanding range of postal services
• Centralizing management of core clients
  activities
• Creation of special departments for core clients
  in different fields of business activity

12
New projects of Russian Post

• Automated sorting center project
• Hybrid mail
• Response forms project
• Postal Trade House project
• Other projects
• Ad services in postal offices
• Distribution of addressed and non-addressed
  mailings
• Project CyberMoney
• Project CyberPost_at_
• Project CyberPress_at_

13
Russian Post on DM market

• Postal technologies usage in various fields of DM
  market (direct mail, mail-order trade etc.)
• Postal infrastructure usage in DM services
  rendering
• Substantial role of Russian Post in DM market
  development
• Russian Association of Direct Market (RADM)
  establishment
• Organization and assistance to the DM market
  development events (conferences, workshops for DM
  market players)

14
DM market development plans 2004

• Regional program
• Studying regional companies needs
• Program for assistance to regional DM companies
• Information provision of DM market
• Publishing the Reference book for DM companies
• Creating Robinsons list
• Assistance to training specialists for DM market
  (jointly with Higher Schools and Universities)
• Organization of the events
• IV International Conference DIRECT MARKETING.
  XXI CENTURY (26-27 May, 2004)
• Best DM Campaign Contest in Russia

15
IV Conference DIRECT MARKETING. XXI CENTURY

• DM Conferences have been held for 4 years,
  supported by Russian Post and RADM
• IV International Conference DIRECT MARKETING.
  XXI CENTURY will be held 26-27 May, 2004 in
  Moscow (Russia)
• In the framework of the Conference the Expanded
  Session on Mail-Order Trade will be held
• Goals of the Conference
• To assist to DM market development
• To exchange experience, to establish new business
  contacts
• To integrate with international DM market

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