1. WDM Belgium - De Post
21 October 2008

2. Agenda
The challenges of the car industry
The Direct Marketing opportunities :
Some figures
The role of Direct Marketing
throughout the car purchase cycle
The distinctive values of Direct
Marketing
The Real Cases
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3. Car industry context : some facts ...
Market :
Evolution : satisfactory growth so far but …
Market segmentations : increased segmentations in response to more
diversified life stages
Competition : More (Asian) players Share of voice!
Increased quality leading to longer maintenance cycles
More frequent model / re-styling (re-)launches faster time to market
Dealer concentration and multi-brand dealers who’s talking to who
Branding : increasing sub and model-branding
Communication : focus mainly on promotions & new model launches
through mass communication
Privacy context : the interpretation of legislation is changing
Source : Post DM Consultancy team analysis
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4. Car industry context : some facts ...
20% of the market is B-to-B (some brands up to 80%)
identification of the driver
Source : Post DM Consultancy team analysis
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5. Car industry context : some facts ...
New concerns : Environment
Purchasing power
Source : Post DM Consultancy team analysis
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6. Agenda
The challenges of the car industry
The Direct Marketing opportunities :
Some figures
The role of Direct Marketing
throughout the car purchase cycle
The distinctive values of Direct
Marketing
The Real Cases
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7. The direct marketing opportunities:
some figures
Internet: 2,8%
Internet; 2,8%
Gross media
Regional Weeklies; Cinema; 0,6%
investments
4,4%
by Media Type
Jan - June 2008 Postering; 7,2%
Television; 34,2%
Magazines; 8,7%
Direct Mail: 10,3%
Direct Mail; 10,3%
Radio; 10,9% Dailies; 20,8%
Mass Media (Cim MDB-Mediaxim): 1.560,5 Mio eur
Direct Mail (La Poste-Mediaxim): 179.4 Mio eur
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8. E-mail represents 3,9 million €
of the gross on-line investments
Channel mix 2007
Keyword*; Other; 2,7%
17,8%
Newsletter; 0,6%
E-mail: 5,0%
E-mail; 5,0%
Content
Integration; 6,8% Display; 62,2%
*Keyword = Based on declaration of Sales Houses and Agencies only
Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)
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9. What is the typical media-mix
for the car industry?
Gross media Internet: 4,5%
Internet; 4,5%
Regional Weeklies: 4,6%
investments Cinema; 1,0%
by Media Type Postering; 18,9%
Jan - June 2008
Television; 22,5%
Magazines; 8,6%
Direct Mail: 3,2%
Direct Mail; 3,2%
Radio; 12,7% Dailies; 24,0%
Mass Media (Cim MDB-Mediaxim): 166,2 Mio eur
Direct Mail (La Poste-Mediaxim): 5 Mio eur
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10. Agenda
The challenges of the car industry
The Direct Marketing opportunities :
Some figures
The role of Direct Marketing
throughout the car purchase cycle
The distinctive values of Direct
Marketing
The Real Cases
9

11. The role of Direct Marketing in
the Consumer life Cycle: overall
VALUE
UNDERSTAND GET GROW KEEP
TIME
CONVERSION
INVESTMENT
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12. Consumer Life Cycle
VALUE “I tell to others”
loyal customer
second purchase
ex-klant
frequent dealer visits
within dealer network
CONVERSION TIME
first purchase
prospect
suspect
UNDERSTAND GET GROW KEEP
INVESTMENT
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13. DM readership intensity varies according
to client affinity with a car brand
When you receive advertising mail from this sector, personally addressed to you by
…, what do you do?
a company you are a company you are With no
client from not client from company name
%
100 1
4 5 5 7
10 7 21
6 31
80 28
10
34
37 4 7 59
60
40 51
52 49
5
52
20 46
25
17 13
11
0 4
DM (n=158) E-mail (127) DM (n=158) E-mail (n=127) DM (n=158) E-mail (n=127)
carefully read it quickly read it keep it to read later throw it out immediately do not know
Figures for ‘Automotive sector’
Source: ‘P loves E’ study by the Post ( TNS Media, 2007)
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14. Channels consulted for car information
Where do people look Be4 Again Again2 Totaal %
for information? (18-35)% (36-50)% (51-65)%
Dealers 56 58 59 57
Auto fair 58 56 50 56
Internet 49 38 38 43
Friends / relatives 44 34 27 37
Family 49 22 18 33
Brochures car makes 35 30 28 32
Specialised press 28 26 28 27
Autozoekertjes 22 11 12 16
Test Aankoop 13 11 17 13
Source: Three generations and their (dream)cars, WDM Belgium/Beck& X, September 2005
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15. Direct Marketing is a highly accepted
medium
With regards to advertising in the following media, would you say there is …?
Dm (Averages) 8,40% 74% 18%
E-Mails (Averages) 12,10% 68% 20%
cinema (n=678) 5% 70% 25%
dailies (n=981) 3% 71% 26%
magazines (n=1046) 3% 62% 36%
free press (n=991) 3% 61% 37%
radio (n=1058) 2% 59% 39%
door-to-door (n=1149) 4% 44% 41% 11%
internet (n=747) 3% 44% 54%
tv (n=1122) 1% 22% 77%
0% 20% 40% 60% 80% 100%
Source: ‘P loves E’ study by the Post ( TNS Media, 2007) not enough enough too much sticker
Base:Users of each medium and give an answer
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16. Are you present in the media
that the consumers want?
‘How do you prefer to receive information about cars?’ CAR SECTOR
Rating on a scale 1 to 10*; % prefer this option (% of 8, 9 or 10)
Concessions
32
animations
TV 22
Personalised
20
letter
Ads in press 19
E-mail or
18
newsletter
Unaddressed
14
folder
Radio 10
Telephone 5
*1=I don’t like this option at all, 10=This is the best solution
Source : Post Market research on 1.200 households, 2007
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17. And a letter can be very useful
to generate traffic
‘How do you prefer to receive invitations to dealer events?’ CAR SECTOR
Personalised
71
letter
E-mail or
10
newsletter
Unaddressed
8
folder
Ads in press 5
TV 2
Radio 2
Phone 2
Source : Post Market research on 1.200 households, 2007
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18. Use of Direct Marketing in
the ‘consideration process’?
Purchase
CONVERSION Negotiations with dealer
Selling value previous car?
Budget
What do my friends think about it?
Test drive
Car Configurator
Dealer visit
What are the test drive possibilities?
What do my friends think about it?
Look and inform
Creation of ‘shopping list’
First interest
Time for a change
UNDERSTAND INVESTMENT
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19. 18

20. 19

21. 20

22. 21

23. Smell
Taste
Hear
Touch
See
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24. Use of the Direct Marketing
in the ‘sales process’?
Second maintenance
First maintenance
First long ride
Justify purchase
GET
Discover the new car
Get used to the new car
Show the new car to friends
‘Thrill’ of the new car
Take away new car
Waiting for delivery
Purchase
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25. Use of Direct Marketing
in the ‘loyalty process’?
Car is comfortable but no longer new
Maintenance
Third anniversary
Maintenance
Second anniversary of the car
Purchase after sales articles
Maintenance
First anniversary of the car
Second maintenance
GROW
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26. XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXX
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27. 26

28. 27

29. Avoiding churn with Direct Marketing?
Car is comfortable but no longer new
Look around for other car brands and models
End of the (leasing) contract
Time for a change
New cycle starts
KEEP
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30. XXXXX
XXXXXX
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31. Agenda
The challenges of the car industry
The Direct Marketing opportunities :
Some figures
The role of Direct Marketing
throughout the car purchase cycle
The distinctive values of Direct
Marketing
The Real Cases
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32. The distinctive values of Direct Mail:
selectivity
Selectivity
High Addressed
E-mail
Distripost
BD
Low
Involvement
Low High
Source: Post DM Consultancy team
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34. 33

35. XXXXXXXXX
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36. The distinctive values of Direct Mail: impact
Consumers are “bombed” by a few 1000 mass messages every week
350+ outdoor ads
400 press ads/inserts
2+ DM pieces
3 cinema ads Opportunity for Direct !
200 TV ads
20 e-mail ads
150 radio ads
1000’s of ambient ads ...
Source: Mindshare - Henley Centre (and TNS Media & Post survey)
Weekly number of advertising messages per capita
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37. The strength of direct mail,
the MAIL MOMENT…
97%
opens Consumers
mailbox spend
every day 1’52’’ per
mail
… but
receives … and behind
only 2 every letterbox
DM/ week is a unique
person
you can target
78% is
opened
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38. The distinctive values of Direct Mail: measurability
1 2 3 4
High recall Brand Sales Loyalty
rate perception activation building
DM gets high DM improves DM is a strong DM builds strong
recall rates even brand perception sales activator long term
of complex relations with
messages your customer
>50% of
brand attributes 15% to 200%
extra sales >25% more
2 to 20 times improved
loyal
better recall
customers
5
Boosting
Integrated with other media DM
of ROI increases the ROI of your
campaigns with at least 20%
Source: Post – 15 DM pilot surveys N: > 25.000
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39. Agenda
The challenges of the car industry
The Direct Marketing opportunities :
Some figures
The role of Direct Marketing
throughout the car purchase cycle
The distinctive values of Direct
Marketing
The Real Cases
38

40. Cases
Toelichting bij ‘involve’, het relatieprogramma van Volvo
Ward Van Rijckeghem (Volvo)
Comment le Fusion Marketing, par l’intégration des médias online et offline, réduit la
distance entre marque et consommateur
Emmanuel Scheenaerts (Peugeot) & Laurent Van Duyse (Wanabe)
Comment le DM peut augmenter la tentabilité lors du lancement d’un nouveau modèle
Claire Normand-Loya (La Poste Française)
(On-line) magazines: efficiënte loyalty tools in de automobielsector
Michel Libens (Propaganda, voorzitter Custo) & Anne Thys (Headline)
Questions légales propres au secteur automobile
Dominique Pissoort (WDM Belgium)
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41. Conclusion: the key assets of 121 communication
E-mail Physical mail
■ Easy to react, to get information ■ Appreciated – not intrusive
■ Cost ■ Targeting
■ Can be set up quickly ■ Sales Activation
Advantages ■ Personalisation ■ Acquisition
■ Measurability ■ Complex information
■ Short messages ■ High opening and reading rate
■ Can be surprising and original
■ Own list ■ To promote image & brand value
■ Newsletters ( top of mind ) ■ Involving, captures attention
When to ■ Punctual Information & more ■ Giving useful, detailed trustworthy
use ? frequent use information
■ Generate traffic on website ■ Call to action (vouchers)
■ Lead generation ■ Magazines
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42. More information?
Cécile Jacques
cecile.jacques@post.be
02/276.30.42
www.denkdm.be / www.pensezdm.be
Natalie Versluys
nvs@wdmbelgium.be
O2/555.96.88
www.wdmbelgium.be
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