new markets. new opportunities. - dhl | global | …€¦ · 6 (source: fischer weltalmanach 2004,...

Direct Marketing Monitor International:

Background information from 18 countries

New Markets.New Opportunities.

Marketing facts international 2004

2

Europe is on the move. National and economic borders are merging, and the

markets are changing. The perfect conditions, in other words, in which to reach new

target groups and increase your sales potential. Approaching customers directly is the

right way to success. We can support you with well-founded market analyses.

The success story of the “Direct Marketing Monitor” study has been unbro-ken throughout its ten-year existence. The DMM has long since established itself

as a fixture on the direct marketing scene, offering comprehensive market information

on all aspects of target group marketing in Germany every year.

Direct Marketing Monitor goes international! In it’s second year the Direct

Marketing Monitor is going beyond the national borders, providing a view of the

direct marketing climate in 18 different countries. And the international analysis is

aimed at the consumers, not the companies, making it the ideal companion to the

classical DMM for a perfect market overview.

The better you know your target group, the more striking your approach.You are provided with background information on “the countries and their people”

for your entry into markets in new regions. Benefit from the up-to-date information

revealed by international consumer and expert inquiries.

Take advantage of this brand new tool for your success abroad.Put your trust in our many years of experience in international direct marketing.

We will be glad to help you.

Welcome to new markets!

Preface

Introduction Page 4

CountriesThe new EU members

Poland Page 5Slovakia Page 15Czech Republic Page 25Hungary 5

Europe and the U.S.A.

Belgium Page 45Denmark Page 55Germany Page 65Finland Page 75France Page 85United Kingdom Page 95Italy Page 105The Netherlands Page 115Norway Page 125Austria Page 135Sweden Page 145Switzerland Page 155Spain Page 165U.S.A. Page 175

3

The data and graphics printed in the Direct Marketing Monitor correspond to knowledge as it existed at press time. Nevertheless, we can under no circumstances assume liability for their accuracy. Subject to alterations.

Contents

Get the facts - we provide you with the following information for each country

So you want to open up new markets? Thentake a closer look at your target country –we’ve already done it for you! Because the

more you know, the better suited your offering will

be. In order to best define your target groups,

better understand the countries’ particularities and

develop optimized strategies, there is only one way

to proceed – ask questions, questions and more

questions – and the best thing is to ask those whom

you want to know about: the consumers in the

country in question. You will find some of these

answers in our current market analysis.

We have carried out a large-scale study in conjunction with the Gesellschaft für Kon-sumforschung (Association for ConsumerResearch – GfK). Approx. 10,000 people were

surveyed regarding their dealings with direct mail

and other advertising media, their consumer

attitudes and preferences. Representative surveys

in 18 countries help provide you with specific

impressions. Benefit from this efficient tool for

your international marketing campaigns.

1. Facts and figuresSelected demographic and socio-demographic data help provide you with an overview of the situation

in your target country.

2. Economic dataEconomic data and current economic trends show you which target markets are of interest to you.

3. Direct marketing trendsInformation on direct marketing affinities, media utilization, expenditures and budget breakdowns pro-

vides useful planning aids. You will find important information for designing your offerings and sales

pitches here.

4. Consumer trends Different countries, different desires. With information on purchasing behaviors, consumer trends and

attitudes to products “Made in Germany”, you will know what to expect.

5. Mail order affinityMail order, specialty shops or discounters – which retail channels do consumers prefer, and what re-

sponse elements do they avail themselves of? Facts on purchasing behavior provide you with valuable

information for a striking offer.

6. What the experts sayWe have queried experts from various advertising agencies regarding marketing trends, media utiliza-

tion, target groups, creative sides and outlooks in direct marketing. Their answers provide you with

exclusive insider information on how things stand in 18 countries.

Direct marketing without borders

4

Introduction

5

And that is not the only Polish marketthat is moving ahead. Poland’s economy

experienced dynamic growth in the first quar-

ter of 2004 and again captured a leading posi-

tion among the economically important new

member states of the EU.

The mood in marketing is also positive.Poland is seen as one of the most promising

markets for direct marketing in Europe in

2004, with budgets growing rapidly. The

medium is accepted; the response rates are

good.

Powodzenia!

Dzien dobry!

Where once the legendary Rübezahl resided,

skiers now enjoy the slopes of the Sudeten

Mountains. Cyclists and hikers from all

around the world meet in the Masuria Lake

District. North or south, Poland is a tourist

highlight.

Poland

6

(Source: Fischer Weltalmanach 2004, Bundesagentur für Außenwirtschaft 2004)

Demographic data

The provinces of Poland

Area 312,685 square kilometers

Population 38.6 million

Average household size 3.09 persons

Number of households 13.3 million

Number of households connected to the Internet 1.4 million

Major cities/metropolitan areas (residents) Warsaw (1.6 million), Lodz (806,728), Cracow(740,666), Wroclaw (637,877), Poznan (578,235),Gdansk (458,988)

Baltic Sea

Germany

Czech Republic

Slovakia

Ukraine

Belarus

Lithuania

Warsaw

1

23

4

6 7

5

108

11

1213

14

16

15

9

Population aged 0-14 6.9 million


Population aged 65 and up 4.9 million

1. Facts + figures

1 Zachodniopomorskie2 Pomorskie3 Warminsko-Mazurskie4 Podlaskie5 Kujawsko-Pomorskie6 Lubuskie7 Wielkopolskie8 Lodzkie

9 Mazowieckie10 Lubelskie11 Swietokryskie12 Padkarpackie13 Malopolskie14 Slaskie15 Opolskie16 Dolnolaskie

Poland

7

Imports and exports


(Source: Bundesagentur für Außenwirtschaft 2004)

Good prospects for Poland. Poland’s strong current economic growth will continue at least until the end of2004; the economy is expected to grow by 5.4%, one of the best rates in the EU. The upturn is slowly having awidespread impact, but is predominantly due to developments in industry and in turn on the extremely positivetrends in export-oriented sectors. Analysts agree that industrial growth will slow down slightly following acces-sion to the EU, even though there is hope of stabilization in the high level of growth.Private consumption forecast: Consumption will probably rise 4.5% in 2004 and a further 5.3% in 2005.

The current business climate

Number of businesses 221,704

Economic growth Real growth of 3.7 % in GDP (over previous year)

Gross National Product US $ 163.6 billion

Purchasing power GDP per capita: US $ 10,700

Unemployment rate 19.2%

Sales tax 22%

Inflation rate 0.8%

€ 47.6 billion

€ 60.4 billion

Imports from Germany

€ 16.4 billion

ExportsTotal imports

2. Economic data

(Source: Bundesagentur für Außenwirtschaft)

Poland

8

3. Direct marketing trends (1)

Response behavior – direct mail

48% of Polish consumers who receive mailings actually read them. Their response to them is still restrained(11%). The conversion rate of 6% can be improved; it is below the average for Eastern Europe.

Basis: Received 68 %

Read 48 %

Responded 11 %

Purchase/visit 6 %(S

ourc

e:G

fK/M

RSC,

2004

)

Basis: All respondents Basis: All respondentsN = 1,000 N = 3,503

Received: All respondents who have received direct mail in the past 12 months.Read: All respondents who regularly read mailings.Responded: All respondents who have responded to mailings at least once in the past 12 months.Purchase/visit: All persons who have ordered the product or visited the store as a result of an advertising mailing in the past 12 months.

Poland Comparison: Eastern Europe


Read 54 %

Responded 16 %

Purchase/visit 9 %

(Source: GfK/MRSC, 2004)

To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Eastern Europe” group encompasses the following countries:Poland, Slovakia, the Czech Republic and Hungary.

Mailings have to fight hard. The best means

for extracting a response from Polish consumers

are wit and a blaze of color. Poles prefer respond-

ing by reply card.

Price plays a major role in decisions to purchase.

Polish consumers are dyed-in-the-wool and must

first establish trust in a new brand before they

remain loyal to it.

There is room for development of mail ordering

in Poland. The number of Poles who shop mail

order is below the average for Eastern Europe.

However, one in every seven uses this channel.

Poland

9

Response channels


Polish consumers prefer to respond using the reply card (60 %). The Internet is not yet a very common responsemedium.

Yes22%

No78%

Responded to a mailing

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents who regularly read direct mailing.

N: 306

Basis: All respondents who have responded to mailings atleast once in the past 12 months.

N: 68

Sent reply card

Enrolled in prize drawing

Requested info materials or catalog

Telephoned

Replied via Internet/e-mail

Ordered product

Visited store directly

Replied by fax

60%

17%

27%

23%

12%

40%

21%

2%

In the course of the past 12 months, have you responded in the way indicated at least once to an advertisement received in the mail?

Please indicate how you responded to the mail advertising.

Poland

10

Relevance of design characteristics


Wit is the means to the end: one-third of Polish consumers appreciate a witty and colorful design in advertisingmailings. Mailings from well-known companies also have it easier when it comes to attracting the attention ofconsumers. The fact that a provider is Polish is of significance for only one in five.

Reasons for acceptance/rejection of mailings

More than half of all Poles surveyed stated that they find mailings informative. A decisive factor for 62 % ofPolish consumers is that the product offered appeals to their interests.

Please think of a mail advertisement or advertisement letter you opened recently. What was it aboutthe mailing that aroused your curiosity?

34%31%

28%

32% 33%

27%

10%

20%

Mailingsarouse mycuriosity

Mailings areentertaining

Positive Negative

Mailingsannoy me

I only readdirect mail if I’m interested in the products

You get far toomany ads inthe mail

Mailings areinformative

Your opinion of advertisements received in the mail:

29%38%

55% 52%62%

72%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondentsN: 1,000


(Sou

rce:

GfK

/MRS

C,20

04)

Witty presentation

High-quality appearance

Personal formof addresswith name

Well-knowncompany asreturn address

Colorfuldesign

Premiumpaper

Beautifulstamp(s)

Companyfrom mycountry

Poland

11

Advertising media affinity


Print advertising is the most popular form of advertising in Poland from the point of view of consumers (19 %).Direct mail (10 %) competes with TV advertising (11 %) for second place. Online advertising has met with littleresponse to date.

Direct mail Newspapers Television Radio Internet

In which media do you enjoy seeing or hearing advertisements?

10%

16%

19%

22%

11%

14%

7%

9%

3%4%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Poland: All respondentsN: 1,000

Basis Eastern Europe: All respondentsN: 3,503

Poland Comparison: Eastern Europe

Poland

Indifferent Does not apply to meApplies to me

12

General attitude towards purchasing

4. Consumer trends

Price is a key factor for the vast majority (66 %) of Polish consumers in deciding to buy a product. Tradition isextremely important in Poland – more so than in other Eastern European countries. Consequently, new providersfirst have to gain the trust of Polish consumers. Once a brand has achieved that, 69 % of Polish consumers rewardit with their loyalty. A quarter regard products “Made in Germany” as being high-quality. In general, quality orientation in Poland is below the average for Eastern Europe.

Price orientationWhen shopping, I usually choose the cheapest provider

Comparison: Eastern Europe

Quality orientationI don’t mind spending more for particularly good quality


Brand loyaltyIf I’m satisfied with a brand,I stick with it


TraditionI tend to be skeptical of new companies


OpennessI like trying out new products


Made in GermanyIf I see “Made in Germany” on a product,I know I can trust its quality


National providersI only buy products from companies in my country


66% 26% 8%

62% 29% 9%

46% 38% 16%

74% 22% 4%

29% 49% 22%

41% 40% 19%

24% 45% 31%

22% 46% 32%

36% 42% 22%

69% 27% 4%

45% 39% 16%

35% 40% 25%

24% 42% 34%

34% 41% 25%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Poland: All respondentsN: 1,000


Poland

13

Buying behavior for various distribution channels

5. Mail order affinity

Mail ordering is still in its infancy in Poland. Nevertheless, one in seven Poles already uses this channel severaltimes a year. Discounters are popular, although use is slightly below average compared with the rest of EasternEurope.

Mail order business and ordering

When it comes to mail ordering, Polish consumers also trust in the postal channel (44 %) rather than the newmedia (20 %).

(Sou

rce:

GfK

/MRS

C,20

04)

Mail orderComparison: Eastern Europe

Food retailersComparison: Eastern Europe

Specialty shops and boutiquesComparison: Eastern Europe

Specialty markets/discount centersComparison: Eastern Europe

DiscountersComparison: Eastern Europe

How often have you shopped with the following providers over the past 24 months?

2% 11%

3% 18%

93% 4%

95% 3%

35% 37%

42% 36%

53% 24%

59% 23%

40% 20%

46% 21%

At least once a month Less than once a month

Via order card

Via fax

Via e-mail/Internet

Via telephone

1%

20%

44%

17%

Yes13%

No87%

Mail order customers

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Poland: All respondents N: 1,000


Basis: All respondents who shop mail orderN: 128


Percent missing up to 100 = not applicable

Have you bought anything through mail order during the last 12 months?

How have you usually placed your mail orders in the past 12 months?

Poland

14

6. What the experts say

1. Marketing trends• TV advertising is still very inexpensive in

Poland and is thus still the preferred

medium. Trend: hard selling, tactical,

geared to sales.

• Print advertising is also a popular marketing

instrument. Trend: emotional, playful, aims

to create an image.

• Direct marketing is gaining in importance.

Trend: the main focus is on knowledge and

understanding of customers’ needs.

• The target group that is the particular focus

of business activity in 2003/2004: persons

aged 30 to 45, with career prospects.

• Evolution in marketing: direct marketing

is coming increasingly to the fore, at the

expense of the currently dominant medium

of classical marketing.

2. Direct marketing• Budget spread in 2003/2004: budgets are

growing slightly and are increasing in

direct marketing by approx. 20 %, in online

advertising by approx. 10 % and in

classical advertising by approx. 5 %.

• Measures of success: response rates.

3. Direct marketing media most frequently used• Response advertisements and supplements

are popular, as is outdoor advertising with

response elements.

• Personalized mailings are enjoying increasing

popularity.

• Phone service: most campaigns integrate a

toll-free number for obtaining further

information.

4. The creative side• Character of direct marketing: informative,

image-oriented, story-telling, integrated.

5. Target group• Consumer attitude and behavior: price-

conscious, critical, willing to take risks.

• Polish consumers have a positive attitude

towards direct marketing since they regard

it as very informative.

6. Made in Germany• German products are regarded by Polish

consumers as being high-quality and are

associated with high standards.

• German brands/providers enjoy a good

reputation especially in the automotive,

financial services and manufacturing sectors.

• It is recommendable to avoid any topic

relating to Poland’s past in advertising.

People look ahead in Poland and are

reluctant to look back.

7. Forecasts• Marketing trends: direct marketing will

grow by approx. 20 % and online advertising

by approx. 10 %; classical advertising will

remain stable.

• Industries with opportunities: financial

services and fast-moving consumer goods.

• Industries with risks: manufacturing.

8. Attitude toward the EU expansion• There is hope, but also great insecurity, as

regards the country’s accession to the EU.

• Nevertheless, the Poles are optimistic about

their membership of the EU and see great

opportunities for new jobs.

• Despite the fear of price increases, Poles are

regarded as willing to consume.

(Source: Survey of marketing experts from Poland)

Poland

15

Slovaks are true Europeans. The divided

town of Komárno on the Slovakian/Hungarian

border has created a “Europe Square” as

homage to its former importance as a traffic

hub. Facades from all nations have been

erected in an attractive format.

Although Slovakia remained the smallerbrother of the Czech Republic followingthe division of Czechoslovakia, positiveeconomic development is in sight.Traditionally a country of agriculture and

industry, retailing and the services sector have

nevertheless developed strongly in the past

years. The ambitious reforms launched in 2002

and 2003 will underpin this trend.

Do videnia!

Dobré popoludnie!

Slovakia lies in the heart of Europe – and is

its geographical center. But the country is

still an unknown quantity for many.

Or did you know that Slovakia was the Ice

Hockey World Champion in 2002?

Slovakia

16

1. Facts + figures


Demographic data

The regions of Slovakia




Number of households 2 million

Number of households connected to the Internet 52,837

Major cities/metropolitan areas (residents) Bratislava (447,345), Kosice (242,080),Presov (94,058), Nitra (87,575), Zilina (86,679),Banska Bystrica (84,000)

Poland

Czech Republic

Austria

BratislavaHungary

Ukraine

1 2

3

4

6

7

8

5

Population aged 0-14 1 million



1 Bratislavsky2 Trnavsky3 Trenciansky4 Nitriansky

5 Zilinsky6 Banskobystricky7 Presovsky8 Kosicky

Slovakia

High economic growth continues. GDP will increase by 4.1% over the previous year in 2004 and by a further4.4 % in 2005. The main items of expenditure in private consumption in the first half of 2003 were food (share ofconsumption: 27.5 %), housing (21.35 %) and clothing, furniture and other homeware (10.7 %). Thanks to the significant income tax cuts that have been made, stronger growth in private consumption of approx. 3 % is expected in 2004. Above all, sales of durable goods will probably increase.Private consumption forecast: Consumption will probably rise 2 % in 2004 over the previous year.

17

2. Economic data

Imports and exports




Economic growth Real growth of 4.2% in GDP (over previous year)



Unemployment rate 17.1 %

Sales tax 19 %

Inflation rate 8.5 %

€ 19.4 billion

€ 19.9 billion


€ 5.2billion

Exports Total imports



Slovakia

Interest in direct mail: Although response to

mailings is still a little hesitant, there is definitely

interest in them among Slovakian consumers. A

majority of the population likes this informative

advertising medium. High quality and witty

design increase their ability to attract consumer

attention.

The most popular response tool is the reply card.

Slovakians prefer the postal channel for both

direct marketing and mail ordering.

By the way, almost one in every three Slovaksshops mail order.

18



One out of every two Slovakians who receives mailings actually reads them. 16 % respond to them. The conver-sion rate for advertising mailings is 8 % in Slovakia. These figures are in line with the average for Eastern Europe.


Read 50 %

Responded 16 %

Purchase/visit 8 %

(Sou

rce:

GfK

/MRS

C,20

04)



Slovakia Comparison: Eastern Europe


Read 54 %

Responded 16 %

Purchase/visit 9 %



Slovakia

19

Response channels


The most popular means of responding to mailings are the reply card (48 %), requesting further info material (47 %) and ordering directly (44 %).

Yes31%

No69%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents who regularly readdirect mail.

N: 360


N: 112

48%

38%

47%

26%

13%

44%

22%

3%

Sent reply card



Telephoned


Ordered product


Replied by fax



Slovakia

20



Well-known companies have advantages in attracting the attention of Slovakian consumers. However, this is alsofacilitated by a witty design (35 %) or fine appearance (34 %). A personal form of address is also well received.


There is no lack of consumer interest in Slovakia: almost 70 % respond to mailings with curiosity and nearly 80 % find them informative.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



35% 34%31%

37%

28%25%

13%

20%

Positive Negative


30%

69%79%

52% 55%

87%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Slovakia

21



The mailing wins! Measured in terms of the affinity of Slovakian consumers for advertising media, mailing comesin at 21 % – ahead of TV and print advertising. That makes it more popular among Slovakian consumers thanamong their Eastern European neighbors.


In which media do you enjoy seeing or hearing advertisement?

21%

16%17%

22%

19%

14%

9% 9%

4% 4%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Slovakia: All respondentsN: 1,000


Slovakia Comparison: Eastern Europe

Slovakia


22


4. Consumer trends

A low-price offer generates demand: 60 % of Slovakian consumers base their choice on price. Nevertheless, abrand has good chances of creating loyalty in the view of 76 % of respondents. Tradition and nationality play asecondary role, as is also shown by a comparison with the average for Eastern Europe. The label “Made inGermany” still has to prove its qualities first.















60% 30% 10%

62% 29% 9%

46% 38% 16%

74% 22% 4%

29% 49% 22%

41% 40% 19%

24% 45% 31%

22% 46% 32%

41% 40% 19%

76% 19% 5%

17% 53% 30%

35% 42% 23%

16% 46% 38%

16% 47% 37%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Slovakia: All respondentsN: 1,000


Slovakia

23



30 % of Slovakian consumers shop mail order several times a year. Surprisingly, discounters are not so frequented(33 %) as in neighboring countries of Eastern Europe (46 %), despite the pronounced price orientation ofSlovakians.


The order card is by far the preferred channel used in mail ordering (65 %)! 29 % place orders over the phone.(S

ourc

e:G

fK/M

RSC,

2004

)







1% 29%

3% 18%

96% 2%

95% 3%

36% 39%

42% 36%

37% 40%

59% 23%

33% 24%

46% 21%


Via order card

Via fax

Via e-mail/Internet

Via telephone

0%

7%

65%

29%

Yes30%

No70%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Slovakia: All respondents N: 1,000







Slovakia

24


1. Marketing trends• TV advertising still ranks as the most used

instrument. Trend: hard selling.

• Print advertising comes second.

Trend: hard selling.

• Direct marketing comes after promotion; PR

and sales promotion measures are only slowly

gaining in importance. Trend: informative.

• Evolution in marketing: mass marketing is

losing ground in the marketing mix due to

the growing significance of personalized

direct marketing activities.

• The mood in marketing is positive.

2. Direct marketing• Budget spread in 2003/2004: direct

marketing will increase by approx. 20 %,

online advertising by approx. 15 % and


• Amplifiers: incentives and couponing

are mainly used.

• Measures of success: response rates,

conversion rates.

3. Direct marketing media most frequently used• Personalized, partly personalized and

non-personalized mailings predominate.

• Banners are closely followed by e-mail

marketing.

• Direct response radio and direct response

TV are still bringing up the rear.


hard selling.

• The share of single-step mailings dominates

by far.

• Tailor-made concepts predominate in mailing

campaigns.

• Test scenarios are used relatively often, but

market research (focus groups and

quantitative market research) tends to be

conducted rarely.


conscious, safety-oriented.

6. Made in Germany• The automotive industry leads in the

popularity ratings of German brands.

German financial services providers and

manufacturing companies are also well

received.

7. Forecasts• Positive trends are expected in direct

marketing, as well as in classical and

online advertising.

8. Attitude toward the EU expansion• Slovaks view their accession to the EU

with optimism.

• The hope for new jobs is only overshadowed

by fear of price increases.

• Accession to the EU will give further

buoyancy to direct marketing, intensify

competition and produce more critical

consumers.

(Source: Survey of marketing experts from Slovakia)

Slovakia

25

Ahoj!

Which one came first? Bude jovicky Budvar,

or Bud? This question remains unanswered.

But it is a fact that the Czech Republic is the

European champion in beer drinking.

Czechs and Americans are litigating overthe brand and the name Budvar andBudweiser and thus far there’s no end insight. Budweiser Budvar is the original name

of the beer. Up until the end of the Second

World War, the German name, Budbräu, was

also in use. This beer is now drunk all over the

world, and it is very well known.

An imitation has been produced in the U.S.A.

since 1876, and its manufacturer would like

to call it Budweiser, too.

But the fact that the Czech Republic has more

to offer than good beer is shown by the stream

of tourists who each year flock to Bohemia,

Moravia and of course the golden city of

Prague.

Along with tourism, industry is growing,too. The accession to the EU will give wing to

economic development in the Czech Republic.

All indicators point to continued, solid growth

– whether in foreign trade, industrial produc-

tion, construction volume or the services sec-

tor. The growth trend will persist. Purchasing

power is approaching Western standards.

Hodne stesti!

Czech Republic

26

1. Facts + figures


Demographic data

The administrative districts of the Czech Republic






Major cities/metropolitan areas (residents) Prague (1,178,576), Brno (379,185),Ostrava (319,293), Pilzen (166,274),Olomuc (103,293), Liberec (99,832)

Germany

Poland

Austria

Slovakia

1

2

4

6

7

8

9

10

11

12

13

14

3

5




1 Karlovarsky2 Ustecky3 Plzensky4 Liberecky

5 Praha6 Stredocesky7 Ceskohudejovicky8 Kralovehradecky

9 Pardubicky10 Jihlavsky11 Olomoucky12 Brnensky

13 Ostravasky14 Zlínsky

Prague

Czech Republic

27

Imports and exports



Number of businesses 2.2 million





Sales tax 22 %


€ 43 billion€ 45.2 billion


€ 16.3billion


Stable business activity. With solid growth of 2.9 % in GDP, the Czech Republic was unspectacular in 2003,trailing most other candidates for accession to the EU, and yet it was clearly ahead of the old EU States. Growthof 2.8 % is expected for 2004. Despite stable economic development, very lively foreign trade, sustained directinvestment from abroad and an inflation rate under control, sources of uncertainty remain in the form of growingnational debt and unemployment. Since 1999, growth has been spirited along by levels of private consumptionthat were particularly pronounced in 2003 (real growth over 2002: +5.4 %). The absence of inflation treated citizens there to real growth in wages of 6.7 %. Combined with reasonably priced consumer loans and leasing offerings, the propensity to consume rose apace.Private consumption forecast: Consumption is projected to grow by 2.9 % in 2004 and in 2005 by 3.1 % overthe previous year.



2. Economic data

Czech Republic

Czechs like reply cards. Whether as a response

channel for direct mail or in the mail order busi-

ness, the majority of Czech consumers prefer the

reply card. In general, their reaction to mailings is

still somewhat reserved. High quality, personal

forms of address and wittiness garner consumer

favor in direct marketing.

Price governs demand. In comparison with

Eastern Europe, quality fades into the background.

And products “Made in Germany” must first

convince Czechs of their quality. Once they are

satisfied with a particular brand, the vast majority

of respondents remain loyal to it.

28



In the Czech Republic, the mailing density of 44% is still far below the average for Eastern Europe (67 %). Still, ofthose who receive direct mail, more than half read these letters, with 15 % responding as a result. The conversionrate of 7 % in the Czech Republic remains below the Eastern European average (9 %).

Basis: Received 44%

Read 55 %

Responded 15 %


ourc

e:G

fK/M

RSC,

2004

)



Czech Republic Comparison: Eastern Europe

Basis: Received 67%

Read 54 %

Responded 16 %

Purchase/visit 9 %



Czech Republic

29

Response channels


When they do react to mailings, Czechs prefer to reach for the reply card (88 %). One of every two direct-mailrecipients requests additional informational material. Prize drawings are popular among 43 % of those who reactto mail advertising.

Yes29%

No71%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents who regularly read direct mail.N: 198


N: 55

88%

43%

51%

22%

2%

37%

15%

3%

Sent reply card



Telephoned


Ordered product


Replied by fax



Czech Republic

30



Fine appearance (40 %), a personal form of address (37 %) and a dash of wittiness (36 %) – these are the ingre-dients in the recipe for success for direct mail in the Czech Republic. Well-known companies (37 %) have lessdifficulty generating interest in their mailings.


63 % of Czechs consider mail advertising informative. Nearly 40 % are curious about the direct mail they find intheir mailbox. At the same time, interest in the product offered plays an important role for half of Czech con-sumers.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



36%40%

37% 37%

30%

26%

13%

20%

Positive Negative


19%

39%

63%59%

47%

85%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Czech Republic

31



Czechs are still very reserved when it comes to advertising in general. Print advertising (10 %) and mailings (9 %)are the most popular forms of advertising from the point of view of Czech consumers. Even though only a fewrespondents made positive comments on the subject, the acceptance level of direct mail still exceeds that of TVadvertising (7 %) or even online advertising (2 %). All of these values fall below the Eastern European average.



9%

16%

10%

22%

7%

14%

4%

9%

2%

4%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Czech Republic: All respondentsN: 1,000


Czech Republic Comparison: Eastern Europe

Czech Republic


32


4. Consumer trends

The major role played by price (61%) in the Czech Republic is in line with the average for Eastern Europe. Whatwarrants mention in the Eastern European context is the brand awareness level of Czech consumers (81%).Providers of “Made in Germany” products in the Czech Republic must first prove product quality.In general, the aspect of quality in the Czech Republic (39 %) is not as significant as it is in Eastern Europe onaverage (46 %).















61% 30% 9%

62% 29% 9%

46% 38% 16%

74% 22% 4%

29% 49% 22%

41% 40% 19%

24% 45% 31%

22% 46% 32%

39% 44% 17%

81% 17% 2%

26% 53% 21%

39% 45% 16%

13% 53% 34%

14% 51% 35%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Czech Republic: All respondentsN: 1,000


Czech Republic

33



The Czech mail order business is still in a stage of growth; to date, only one in six Czechs regularly shops thisway. The specialty markets enjoy great popularity and regular visits: 79 % of Czechs shop there several times amonth or more, a high rate in the Eastern European context (59 %).


At 64 %, the order card is the most widespread response medium in the Czech mail order trade. 27 % reach forthe phone to place their orders.

(Sou

rce:

GfK

/MRS

C,20

04)







3% 14%

3% 18%

93% 5%

95% 3%

41% 40%

42% 36%

79% 13%

59% 23%

59% 19%

46% 21%


Via order card

Via fax

Via e-mail/Internet

Via telephone

0%

6%

64%

27%

Yes17%

No83%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Czech Republic: All respondents N: 1,000







Czech Republic

34


1. Marketing trends• Direct marketing, promotions and print

advertising are the marketing instruments

of choice.

• Overarching trend: strong brands build upon

emotions, whereas even renowned German

automobile brands are increasingly intent

on being “affordable” for the consumers, ap-

pealing to them more and more with discounts

and special offers. B2B communication is

coming into focus. Attention is increasingly

being devoted to decision-makers.

• Evolution in marketing: strong growth in cell

phone marketing (SMS text messaging) and

e-mail advertising. Communication with

low-value customers via SMS text messaging

is growing rapidly (inbound and outbound),

at the expense of telemarketing and direct

marketing. Heavier use of direct marketing

instead of mass marketing is slowed down

by the lack of expertise in the companies

involved.

2. Direct marketing• Budget spread in 2003-2004: budgets are

being cut by approx. 20 % in direct market-

ing, increased by approx. 20 % in online

advertising and remaining stable in classical

advertising.

3. Direct marketing media most frequently used• Personalized mailings are high on the list in

the ranking of direct-marketing media, but

hot on their heels are cell phone marketing

(SMS text messaging), e-mail advertising and

Internet.

• Alongside response-driven media, partially

and non-personalized mailings are bringing

up the rear in the ranking.


cost-oriented, hard selling.

• Test scenarios and market research (focus

groups, quantitative market research,

telemarketing research) are used only rarely.

5. Target group• Consumer attitude and behavior:

quality-oriented, price-conscious, critical,

conservative.

6. Made in Germany• German cars are viewed as state-of-the-art

products and the most reliable available.

• German providers are held in high esteem,

particularly in the automotive sector, in

financial services, in the manufacturing

trade and among energy suppliers.

• Czechs are very rational people who carefully

assess whether an offering is good or bad.

This is why it is advisable to come to the

Czech market with credible offerings with

which to win consumer trust and retain that

trust in the long-term.

7. Forecasts• Marketing trends: direct marketing and

classical advertising will decline; online

advertising will grow.

8. Attitude toward the EU expansion• There is hope for new opportunities on the

job market.

• Alongside fears of rising prices, Czechs are

skeptical of international competition.

• Consumers are growing increasingly critical.

(Source: Survey of marketing experts from the Czech Republic)

Czech Republic

35

The economic situation is bipartite, too.As of the spring of 2003, the Hungarian econ-

omy was in its seventh straight year of stable

growth. The driving force behind development

in the Hungarian economy since the fall of

Communism has been the steadily growing

stream of exports by an industry modernized

primarily through foreign investment. By the

same token, direct marketing is currently

experiencing rapid growth of around 20 % –

even as it stays at a low level. However,

Hungary’s northeastern region remains a

social focus of attention for the country.

People are also of two minds when itcomes to Hungarian “Gulyás”. Some

consider it a meat ragout – others insist it’s

a meat stew simmered in a caldron. Get to

know both sides.

Viszlát!

Jó napot!

There are two sides to Hungary – not just

the entire country but even its capital is

divided by the Danube. The mighty river

carves the metropolis of two million souls

into two parts: hilly Buda and flatland Pest.

Hungary

Budapest

1

2

3

4

6

7

8

9

11

5 12

13

15

16

17

18

19

20

14

10

36

1. Facts + figures


Demographic data

The counties of Hungary






Major cities/metropolitan areas (residents) Budapest (1,811,522), Debrecen (203,648),Miskolc (172,357), Szeged (158,158),Pécs (157,332), Gyor (127,119)

Slovakia

Austria

Croatia

Serbia

Romania

Ukraine




1 Gyor-Moson-Sopron2 Vas3 Zala4 Veszprém5 Somogy6 Komárom-Esztergom

7 Fejér8 Tolna9 Baranya

10 Budapest11 Pest12 Bács-Kiskun

13 Nógrád14 Heves15 Jász-Nagykun-

Szolnok16 Csongrád17 Borsod-Abaúj-Zemplén

18 Szabolcs-Szatmár-Bereg

19 Hajdú-Bihar20 Békés

Hungary

37

Imports and exports



Guarded optimism. The economic sky brightened again in the year of Hungary’s accession to the EU. More than€ 3 billion will be available to Hungary through 2006 in the form of EU-sponsored structural and cohesion funds.If these funds are actually brought into play – and the chances of this are not bad – then the money could pro-vide an additional impulse for growth. One can expect to see upheaval in the retail trade as the dismantling ofcustoms duties and lower transaction costs lead to stiffer competition, particularly in the foods sector.Private consumption forecast: Consumption in 2004 is expected to grow 2.1% over the previous year’s level.






Sales tax 25 %


€ 37.6 billion

€ 42.1 billion


€ 11.9billion




2. Economic data

Hungary

Hungary outstrips neighboring states. At

15%, the conversion rate here is distinctly above

the Eastern European average (9 %). Quality still

plays a role in shopping, and also promotes per-

ceptions of direct mail: High-quality mailings are

well received, especially if addressed to their

Hungarian recipient in person.

German providers enjoy a high level of acceptance

of “Made in Germany” products.

One-fourth of the population already shops mail

order, a figure that certainly has potential for fur-

ther growth. Companies cannot forget to enclose

the reply card as their response medium, a fact

that holds true for direct marketing in general.

38



Nearly two-thirds of Hungarian mail-advertising recipients also read these mailings. 22 % react to the direct mailsent to them. The conversion rate for mailings is 15 % in Hungary, a value that can hold its own in the EasternEuropean context; and the same can be said for the response rate.


Read 63 %

Responded 22 %


ourc

e:G

fK/M

RSC,

2004

)

Basis: All respondents Basis: All respondentsN = 503 N = 3,503


Hungary Comparison: Eastern Europe


Read 54 %

Responded 16 %

Purchase/visit 9 %



Hungary

39

Response channels


Hungarian respondents show a clear preference for the reply card (76 %) as their response medium of choice fordirect mail. An encouraging 57 % of those who do respond also place an order in reaction to the mail advertising.The new media are used only rarely.

Yes34%

No66%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents who regularly readdirect mail.

N: 225


N: 77

76%

34%

36%

14%

11%

57%

20%

3%

Sent reply card



Telephoned


Ordered product


Replied by fax



Hungary

40



Succeeding in good taste: 56 % of Hungarian consumers think highly of mailings with a high-quality presentation.Well-known companies, particularly if Hungarian in origin, enjoy easier access to the consumer. For manyHungarians (43 %), it is important to be addressed personally in a colorfully designed advertising mailing.


74 % of Hungarian consumers appreciate direct mail as an informative medium. 59 % are curious about the mailadvertisements waiting for them in their mailbox. If the product offered seems to be interesting, 63 % ofHungarians give the mailing a careful reading.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



25%

56%

43%

50%45%

41%

27%

44%

Positive Negative


43%

59%

74%

40%

63% 67%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondentsN: 503


(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Hungary

41



The newspaper is the advertising medium most popular with the Hungarian populace (42 %). This is followed bydirect mail with 24 %, a value above the Eastern European average (16 %).



24%

16%

42%

22%20%

14%16%

9%7%

4%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Hungary: All respondentsN: 503


Hungary Comparison: Eastern Europe

Hungary


42


4. Consumer trends

More so than their Eastern European neighbors (46 %), Hungarians emphasize quality (70 %). But price plays animportant role in the purchasing decision too; in this regard, 60 % of Hungarian consumers agree with theirneighbors (62 %). Listen up, German providers: 44 % trust “Made in Germany” as an unmistakable quality attribute – a standing German businesspeople don’t enjoy in any of the other Eastern European countries.















60% 31% 9%

62% 29% 9%

46% 38% 16%

74% 22% 4%

29% 49% 22%

41% 40% 19%

24% 45% 31%

22% 46% 32%

70% 26% 4%

72% 22% 6%

29% 51% 20%

55% 33% 12%

44% 38% 18%

23% 44% 33%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Hungary: All respondentsN: 503


Hungary

43



One quarter of the Hungarian population shops mail order. Specialty markets (66 %) are more popular thandiscounters (52 %).


The majority of mail order shoppers order their goods via reply card (27 %). 19 % of them opt to place theirorders over the phone.

(Sou

rce:

GfK

/MRS

C,20

04)







6% 18%

3% 18%

98%

95% 3%

56% 27%

42% 36%

66% 16%

59% 23%

52% 19%

46% 21%


Via order card

Via fax

Via e-mail/Internet

Via telephone

4%

7%

27%

19%

Yes24%

No76%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Hungary: All respondents N: 503







Hungary

44


1. Marketing trends• Given its low cost, TV advertising is still in

first place among marketing instruments used.

Trend: image-oriented with promotions.

• Direct marketing only appears after pro-

motions. Trend: informative.

• Print advertising is very promotion-oriented

and is used relatively rarely since TV adver-

tising is reasonably priced.

• Evolution in marketing: in comparison to

other marketing instruments, direct market-

ing still receives little attention.

• The mood in marketing is positive.

2. Direct marketing• Budget spread in 2003-2004: there is slight

growth in all of the disciplines.

• Amplifiers: incentives are used the most often

by far; prize drawings and couponing are

implemented as well.

• Measures of success: response rates, con-

version rates, cost per interest and cost per

order.

3. The direct marketing media most frequently used• Personalized, partially personalized and non-

personalized mailings are at the top of the

list.

• Banners, e-mail marketing, telephone adver-

tising and mobile marketing (SMS) are – fol-

lowed by the Internet – popular media as

well.

• Direct response radio and direct response TV

have yet to strike a chord.


complex, image-oriented, integrated.

• Mailings are primarily designed in a single-

step manner.

• Direct-marketing concepts are frequently

based on existing concepts.


groups, quantitative market research,

individual interviews) are used only rarely.


conscious, conservative, critical.

• Hungarian consumers have a positive view

of direct marketing; they judge direct

marketing to be informative.

• The B2B area is steadily growing.

6. Made in Germany• German brands sell well.

• Despite of the solid reputation of German

brands, businesspeople should be cautious

and avoid coming across as too sure of them-

selves in the Hungarian market.

7. Forecasts• Marketing trends: growth rates are forecast

in all marketing areas.

• Industries with opportunities: services,

automotive, fast-moving consumer goods.

• Industries with risks: pharmaceuticals

industry.

8. Attitude toward the EU expansion• Hungarians look to the EU market with

optimism and a willingness to make

purchases.

• Consumers tend to be skeptical about

international competition.

• Growth is predicted in direct marketing.

• Consumers are growing more informed

all the time.

(Source: Survey of marketing experts from Hungary)

Hungary

45

As you can see, Belgium is as endearingas it is creative. Although there are three

(language) communities – Flemish, French

and German – the kingdom’s motto is:

L’union fait la force – Eendracht maakt macht

– Einheit gibt Stärke: Unity is strength.

But the local language should neverthe-less be taken into account. Flemish is

spoken in the north of Belgium and French

largely in the south. There are also German-

speaking regions in the east of Wallonia. The

Brussels region is bilingual – Flemish and

French.

There are no language barriers when itcomes to food. No matter which of the

languages you order in, everyone understands

that you want “French fries” – and they taste

best in Belgium. After all, they were invented

here as a substitute for the popular fried fish

outside the fishing season.

Bonne chance! Veel geluk! Viel Glück!

Goeiedag!

Tintin and Milou, Lucky Luke, the

Marsupilami and the Smurfs are some

of the most famous personalities to come

from Belgium, the land of the comic.

Belgium

46


Demographic data

The provinces of Belgium






Major cities/metropolitan areas (residents) Brussels (964,405), Antwerp (445,570),Ghent (224,685), Charleroi (200,233),Liège (184,550), Bruges (116,559)

North Sea Netherlands

Germany

Luxembourg

France




1. Facts + figures

1 Luxembourg2 Hainhaut3 Namur4 Liege5 Westvlaanderen

6 Oostvlaanderen7 Brabant-Wallon8 Vlaams-Brabant9 Limburg

10 Antwerpen

FlemishFrenchGerman

Brussels

1

2

3

4

6

8

59

10

7

Belgium

47

Belgium’s economy is recovering: The GDP is forecast to grow by 2 % in 2004 and 2.5 % in 2005. However,this will probably have little impact on the labor market. More than half a million Belgians are unemployed. Yetprivate consumption is being boosted by tax cuts. In 2003, private expenditure rose by 1.7 %, i.e. more stronglythan disposable income, which grew by just 0.7 %. In 2004 and 2005, disposable income is expected to increasemore strongly as a result of agreed wage increases and further tax cuts.Private consumption forecast: Consumption will probably rise by 1.5 % in 2004 and by an additional 2 % in2005.

Imports and exports








Sales tax 21 %


€ 219.7 billion

€ 211.5 billion


€ 25.8billion


2. Economic data



Belgium

Good prospects for foreign companies:Belgium is an international and multilingual

nation, so its consumers do not feel it important

for providers to come from their own country.

However, companies active in direct marketing

should note that a personal form of address is

crucial in mailings.

The affinity for advertising mailings is higher in

Belgium than in its neighboring European countries.

And Belgians regard them as being interesting and

informative.

48



The response of Belgians to mailings is gratifying: 45 % read them and 17 % respond to them, well above theaverage for Western Europe. The number of purchasers/visitors is 7 %, in line with the trend for Western Europe.


Read 45 %

Responded 17 %

Purchase/visit 7 %

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents Basis: All respondentsN = 516 N = 3,520


Belgium Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Western Europe” group encompasses the following coun-tries: Belgium, Germany, France, United Kingdom, the Netherlands, Austria and Switzerland.

Belgium

49

Response channels


The reply card makes the running: 66 % of Belgians who respond use this means. A noteworthy 34 % evenrespond to mailings by directly ordering the product.

Yes37%

No63%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents who regularly read direct mail.

N: 159


N: 59

66%

29%

20%

30%

7%

34%

7%

4%

Sent reply card



Telephoned


Ordered product


Replied by fax



Belgium

50



Mailings from well-known companies have it easier when it comes to attracting attention in Belgium. The countryof origin is irrelevant. The main thing is for the customer to be addressed personally.

Reason for acceptance/rejection of mailings

Advertising mailings are informative! That is the view of 49 % of Belgian consumers. Mailings arouse the curiosity of 44 % of Belgians. It is important for the advertised product to be of interest.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



11%13%

20%

25%

12% 11%

4%

7%

Positive Negative


29%

44% 49% 51%

65%76%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Belgium

51



The newspaper is the most popular advertising medium among Belgian consumers. Their affinity for mailings isabove the average for Western Europe, whereas their preferences for other advertising media are in line with theWestern European trend.



12%

9%

24% 24%

14% 14%

7% 6%

4%3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Belgium: All respondentsN: 516

Basis Western Europe: All respondentsN: 3,520

Belgium Comparison: Western Europe

Belgium


52


4. Consumer trends

Belgians are not nearly as brand-conscious as their European neighbors. Only 27 % of Belgian consumers regardthemselves as open-minded toward new products; in contrast, most Belgians are extremely open to internationalproviders. Quality also plays a major role in Belgium; however, the label “Made in Germany” alone is not proof ofquality for the majority.


Comparison: Western Europe













25% 41% 34%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

45% 44% 11%

55% 42% 3%

12% 57% 31%

27% 50% 23%

9% 58% 33%

5% 31% 64%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Belgium: All respondentsN: 516


Belgium

53



Mail ordering in Belgium still offers potential: just a quarter of all Belgians say they shop this way. They still prefertraditional channels at present and above all shop at retailers.


Tradition plays a great role in mail ordering: far more Belgians trust the reply card (63 %) for placing orders thanthe phone (28 %), not to mention the Internet (12 %).

(Sou

rce:

GfK

/MRS

C,20

04)

Mail orderComparison: Western Europe

Food retailersComparison: Western Europe

Specialty shops and boutiquesComparison: Western Europe

Specialty markets/discount centersComparison: Western Europe

DiscountersComparison: Western Europe


6% 19%

12% 33%

90% 4%

92% 3%

36% 41%

47% 33%

38% 35%

52% 23%

37% 29%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

3%

12%

63%

28%

Yes25%

No75%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Belgium: All respondents N: 516







Belgium

54


1. Marketing trends• Among the marketing instruments used,

there is increasing focus on direct marketing.

Companies are concentrating on interactive

measures and see direct marketing as the key

medium. Trend: aggressive direct marketing

techniques, outbound telemarketing, multiple-

step mailings, integrated promotions.

• Print advertising is used continuously.

Trend: hard selling, product-oriented.

• Events in combination with sales promotion

measures are also a popular marketing

instrument.

• TV advertising has long since ceased to be

the focus of marketing. Trend: hard selling,

purely product-oriented.


of business activity in 2003/2004: persons

over the age of 40 (with children).

• Evolution in marketing: the adaptation of

more complex direct marketing methods is

slowly beginning to evolve. Although Belgium

has left the age of promotion behind it, direct

marketing on the basis of customer data is

still in its infancy.


stable, with a slight upward trend at the end

of 2003. There is growth in direct marketing

of approx. 30 % and in online advertising

of approx. 10 %; classical advertising is

recording a fall of approx. 20 %.

3. Direct marketing media used most frequently• Personalized, partly personalized and

non-personalized mailings top the list.

• Response advertisements and supplements

are also frequently used as direct marketing

instruments.

• Cell phone marketing (SMS text messaging)

is little used at present.

• Direct response TV is extremely rare.


cost-oriented, hard selling, integrated.

• Test scenarios (pre-launch) and market

research (focus groups) are relatively rare

(approx. 10 %).


quality-oriented, critical, conservative.

6. Made in Germany• German products from the automotive,

manufacturing and financial services sectors

sell especially well.

7. Forecasts• Marketing trends: growth is expected in

direct marketing and online advertising;

classical advertising is expected to decline.

• Industries with opportunities: financial

services, automotive (B2B).

• Industries with risks: luxury goods.

8. Attitude toward the EU expansion• Although Belgians tend to be skeptical

about international competition, a general

optimism prevails as regards EU expansion.

• An increase in consumption is expected.

9. Intercultural aspects• Belgians love promotions and cut-price

offers. That is why customer loyalty programs

geared to these are well received.

• Belgium is a country with a very regional

character, where the different mentalities of

the Flemish and French regions must be

noted. Basically, Belgians generally prefer a

local feel in marketing and business life.

(Source: Survey of marketing experts from Belgium)

Belgium

55

Denmark's geographical dimensions andfinancial position are just as record-breaking as the Lego pieces: The country

may boast 7,314 km of coastline and 474

islands, yet its tallest mountain rises only 173 m

above sea level. Danes have the second-

highest purchasing power per capita in Europe

after Luxembourg. And as for the euro cur-

rency: in Denmark, the Danish krone is still

coin of the realm.

So can direct marketing in Denmark,Greenland and the Faeroe Islands still pay off? When it comes to direct marketing,

Danes are open-minded – although the

country’s strict data protection law should

be kept in mind. Private addresses are subject

to special provisions of law.

Held og lykke!

Hej!

Its most famous export article is the Lego

playing piece, invented by a Danish carpen-

ter in the early 20th century. The name

itself, by the way, comes from “leg godt”:

play well.

Denmark

56

1. Facts + figures


Demographic data

The counties of Denmark






Major cities/metropolitan areas (residents) Copenhagen (500,531), Aarhus (220,217),Odense (144,636), Aalborg (120,359),Frederiksberg (91,332)

Germany

Copenhagen

12

3

4

6

78

9

10

5

1112

13




North Sea

Baltic Sea

1 Storstørm2 Sønderjylland3 Fyn4 Vestjælland5 Roskilde6 Frederiksborg7 København

8 Ribe9 Vejle

10 Ringkøbing11 Århus12 Viborg13 Nordjylland

Denmark

57

2. Economic data

Imports and exports



Consumers are keeping the cash registers ringing: Danish market-analysis institutes forecast 2.3 % growthin GDP for 2004 – particularly as a result of consumer activity stimulated by low interest rates, real growth inwages, new granting of loans and reductions in income tax burdens. Nearly all consumer sectors are reportingvisible sales growth. During the first five months of 2004, the retail trade already added a full 4 % to its previousyear’s figures.Private consumption forecast: In all probability, consumption will grow 3.6 % in 2004, and in 2005 by another2.5 % over this year’s figure.



Gross National Product US $ 164 billion



Sales tax 25 %


€ 58.7 billion

€ 50.7 billion


€ 9billion




Denmark

Denmark – a paradise for direct mail! A coun-

try where 20 % of consumers react with a

purchase or a visit after having received a mailing

makes direct marketing dreams come true. The

best opportunities await providers with an inter-

esting and qualitatively solid array of products to

offer, accompanied by a good price/performance

ratio. Advertising mailings are still ahead of TV

advertising on the list of respondents’ favorite

advertising media.

58



Danish response behavior to mailings surpasses Scandinavian standards: one out of every two Danes who receivean advertising mailing actually reads it too. An encouraging 32 % of recipients respond to the mailing. The Danishconversion rate of 20 % exceeds even the quite high Scandinavian average of 16 %.


Read 50 %

Responded 32 %

Purchase/visit 20 %

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondents Basis: All respondentsN: 509 N: 2,000


Denmark Comparison: Scandinavia


Read 47 %

Responded 24 %

Purchase/visit 16 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Scandinavia” group encompasses the following countries:Denmark, Finland, Norway, and Sweden.

Denmark

59

Response channels


39 % of Danes who have received a mailing over the past 12 months prefer personal contact and opt to see theoffering for themselves by visiting the provider’s store. Responding to advertising mailings by way of reply card(35 %) is also very popular. 34 % of mailing recipients decide to make purchases.

Yes63%

No37%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 226


N: 143

35%

18%

27%

16%

25%

34%

39%

1%

Sent reply card



Telephoned


Ordered product


Replied by fax



Denmark

60



Recognition as a source of success: one-fourth of Danish consumers are more likely to respond to a mailing if thesender is familiar to them. 24 % of Danes prefer national providers. But a high-quality design can also garner theattention of 22 %.


One in every two Danes reacts with curiosity to advertising mailings. 46 % of Danish consumers consideradvertising mailings informative. A Full 74 % of Danes can be enticed by providers if the products on offer appeal to the recipient’s areas of interest.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



17%

22%

17%

25%

17%

12%

6%

24%

Positive Negative


29%

48% 46% 46%

74% 78%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

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/MRS

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04)



Mailingsannoy me




Denmark

61



Direct marketing beats TV advertising: at 9 %, the acceptance level for advertising mailings in Denmark reflectsthe Scandinavian average. Only 8 % of Danes like television advertising. The most popular advertising medium isthe newspaper (21 %).



9% 9%

21%

19%

8% 8%

3% 3% 3% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Denmark: All respondentsN: 509

Basis Scandinavia: All respondentsN: 2,000

Denmark Comparison: Scandinavia

Denmark


62


4. Consumer trends

Quality sells: 58 % of Danes interviewed indicate that they are prepared to pay extra for better quality. Still, for40% price plays a determining role in the purchase decision. Once satisfied with a particular brand, 69 % ofDanes remain loyal to it. Whereas direct mail from domestic providers is more likely to attract a Danish consumer’s attention, a company’s nationality plays no role when it comes to making a purchase according to 59 % of Danish respondents. “Made in Germany” is not necessarily a sign of quality in Denmark; German providers must first persuade their Danish customers of this.


Comparison: Scandinavia













40% 37% 23%

37% 41% 22%

54% 35% 11%

72% 21% 7%

22% 38% 40%

39% 41% 20%

17% 44% 39%

17% 25% 58%

58% 29% 13%

69% 22% 9%

21% 43% 36%

35% 49% 16%

18% 47% 35%

15% 26% 59%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Denmark: All respondentsN: 509


Denmark

63



Mail order business reaches 38 % of Danes, and 11 % even make a mail order purchase at least once a month.Another prominent feature is the rate of 85 % for discounter shopping; this is well above the Scandinavian mean(63 %).


Surprisingly, the Internet is the victor in the mail order business – 50 % make their mail order purchases using thismedium. The telephone (19 %) is also a popular medium. And a full 16 % still send in their order card via the traditional postal method.

(Sou

rce:

GfK

/MRS

C,20

04)

Mail orderComparison: Scandinavia

Food retailersComparison: Scandinavia

Specialty shops and boutiquesComparison: Scandinavia

Specialty markets/discount centersComparison: Scandinavia

DiscountersComparison: Scandinavia


11% 27%

8% 36%

96% 2%

98% 1%

65% 22%

62% 29%

67% 20%

67% 21%

85% 8%

63% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

1%

50%

16%

19%

Yes38%

No62%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Denmark: all respondents N: 509



Basis Scandinavia: all respondentsN: 2,000




Denmark

64


1. Marketing trends• Image-oriented TV advertising still accounts

for nearly 50 % of the marketing measures

used in Denmark.

• Direct marketing, sales promotions and print

advertising account for the other 50 %.

• The mood in marketing is optimistic,

although the broad tendency is toward

budget cuts.


currently witnessing the typical shift away

from classical advertising and toward direct

marketing. Direct marketing budgets are

growing by approx. 15 %; those for classical

advertising are slipping by approx. 15 %.

• Amplifiers: incentives are the main amplifiers

used, accompanied by the occasional prize

drawing. Exclusive information is also

considered an amplifier in Denmark.

• Measures of success: response rates, conver-

sion rates, cost per interest, cost per order,

sales growth (among control groups as well).

3. The direct marketing media most frequently used• Where direct marketing media are used,

personalized, partially personalized and non-

personalized advertising mailings dominate.

• But banners and e-mail marketing are new

media that are already high up on the list.


and direct response radio/direct response TV

are not frequently used.


cost-oriented, hard selling, integrated, but

also isolated applications.

• Multiple-step mailings are predominant.

• Classical campaigns are more or less equal

in number to customized direct-marketing

concepts.

• Test scenarios are rather rare. Approx. 20 %

of all campaigns are based on market re-

search (focus groups, surveys of experts).

5. Target group• Consumer attitude and behavior: safety-

conscious, quality-conscious, price-oriented,

critical.

• Consumers consider direct marketing

informative.

6. Made in Germany• German products sell particularly well

in the automotive and services sectors.

• When it comes to mail-order business,

German products still need to work to

achieve a good reputation.


online advertising will grow; where classical

advertising is concerned, a decline can be

expected.

(Source: Survey of marketing experts from Denmark)

Denmark

65

There’s a lot going on between Munich and Kiel, Aachen and Cottbus. For instance,

did you know that Germany has 65 islands?

But as the most populous country in Europe,

Germany is home not just to geographical

diversity, but to demographic diversity as well.

Today, the peaceful coexistence of typical German

sauerkraut alongside Turkish döner kebabs –

which, incidentally, enjoy higher sales in Germany

than American-style fast food – has become a

widely accepted fact of everyday life.

There is a consensus regarding German traditions, too. Whether Oktoberfest or

Karneval, Germans enjoy a good party.

In spite of the inflation that accompanied the introduction of the euro currency, Germany remains the most important trad-ing partner in intra-European commerce.The Germans enjoy the fourth highest purchasing

power in Europe and are certainly an attractive

target group for companies active in direct

marketing.

Viel Erfolg!

Hallo!

Baltic Sea, North Sea, Alps, Ruhr Industrial

Region – from towering Zugspitze

Mountain, nearly 3,000 meters high, to the

flatlands of its heaths, Germany certainly

has quite a bit to offer.

Germany

Berlin

1

2

3

4 6

8

9

1011

5

12

13

15

16

14

7

66

(Source: Fischer Weltalmanach 2004, Bundesagentur für Außenwirtschaft 2004, Statistisches Bundesamt Deutschland 2004)

Demographic data

The Federal States of Germany






Major cities/metropolitan areas (residents) Berlin (3,388,434), Hamburg (1,726,363),Munich (1,227,958), Cologne (967,940),Frankfurt am Main (641,076)

Denmark

Poland

Czech Republic

The Netherlands

Belgium

France

Switzerland Austria

Luxembourg




1. Facts + figures

North Sea

Baltic Sea1 Schleswig-Holstein2 Hamburg3 Bremen4 Lower Saxony5 Mecklenburg-West Pomerania6 Brandenburg7 Berlin8 Saxony-Anhalt9 North Rhine-Westphalia

10 Hesse11 Thuringia12 Saxony13 Rhineland-Palatinate14 Saarland15 Bavaria16 Baden-Württemberg

Germany

67

Investment and consumption remain weak: Economic growth of 1.5 % is predicted for 2004, and the figure islikely to remain below the 2 % level in 2005 as well. During the first quarter of 2004, retail sales fell by 2.3 %.Still, retail firms are taking a more optimistic view of the future, and consumer confidence has also taken a pos-itive turn. Any noticeable change in private consumption as a result of economic stabilization in 2004 is not likelyto be felt until 2005.Private consumption forecast: In 2005, consumption will probably rise 1.2% over the previous year’s figure.

Imports and exports

(Source: Fischer Weltalmanach 2004, Bundesagentur für Außenwirtschaft 2004, Statistisches Bundesamt Deutschland 2004)



Economic growth Real growth of –0.1% in GDP (over previous year)




Sales tax 16 %


€ 661.6 billion

€ 532 billion


2. Economic data

(Source: German Office for Foreign Trade)


Germany

Examine first, buy later. When it comes to

mailings, Germans like to accept the invitation to

order further information. Given high mailing

densities, a design which attracts attention is

indispensable if an advertising mailing is not to go

unnoticed.

The German consumer is relatively open-minded

about direct mail – particularly if he or she is

already interested in the product being offered.

The German consumer considers mailings inter-

esting and informative.

In light of pronounced brand awareness and

quality orientation in Germany, any attempt to

entice German consumers with bargains,

discounts or coupons is not advisable.

68



Given the particularly high density of mailings, not all mailings are able to attract consumer attention. Only aquarter of Germans who receive advertising mailings actually read them. 8 % respond to mailings. The conversionrate (purchase or visit) is around 4 %. Comparing these figures with the remainder of Western Europe, it is clearthat there is still untapped potential to be found here.


Read 24 %

Responded 8 %

Purchase/visit 4 %

(Sou

rce:

GfK

/MRS

C,20

04)



Germany Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Western Europe” group encompasses the following coun-tries: Belgium, Germany, France, Great Britain, the Netherlands, Austria and Switzerland.

Germany

69

Response channels


Information is of great importance in Germany. So it should come as no surprise that 65 % of consumers requestadditional informational material after receiving advertising in the mail. 59 % of those who respond use theenclosed reply card.

Yes35%

No65%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 112


N: 39

59%

33%

65 %

29 %

29%

44%

18%

16%

Sent reply card



Telephoned


Ordered product


Replied by fax



Germany

70



In Germany, the following applies: if you’ve already made a name for yourself, your mailings will meet with greater acceptance. Witty presentation (20 %) and colorful design (15 %) are well received by the German consumer and are considered more important than the criteria of high-quality appearance or personal form ofaddress (14 % each). The company's nationality can sometimes be of importance, as well.


The key to German consumers’ acceptance of mailings is an interesting product offering. After all, a full 37 % ofGermans consider direct mail informative, and 30 % indicate that mailings arouse their curiosity. So designentertaining and informative mailings which stand out from the advertising crowd.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



20%

14% 14%

27%

15%

5%

8%

16%

Positive Negative


23%

30%37%

61%

79% 83%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Germany

71



From the point of view of the German consumer, the newspaper, at 23 %, is the most popular advertisingmedium. Direct mail comes in third place (6 %), behind TV advertising (10 %). This ranking is in line with the average for Western Europe.



6%

9%

23% 24%

10%

14%

5%6%

3% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Germany: All respondentsN: 502


Germany Comparison: Western Europe

Germany


72


4. Consumer trends

The Germans are very brand-conscious (74 %) and quality-oriented (59 %). For 32 % of Germans, “Made inGermany” is considered a sign of good quality. Still, only 15 % of Germans report a preference for German com-panies. In terms of the characteristics of “openness” and “tradition”, the German consumer is right in line withthe average for Western Europe. One in three describes him- or herself as price conscious.















36% 49% 15%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

59% 33% 8%

74% 18% 8%

17% 51% 32%

38% 49% 13%

32% 48% 20%

15% 33% 52%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Germany: All respondentsN: 502


Germany

73



Germany is a mail order country: 19 % of Germans even buy more than once a month via this channel, 43 %more than once a year. What entices the price-conscious German is the discounter: 67 % – far above the average– shop through this channel at least once a month. The Germans also place their trust in specialty stores.


Germans with an affinity for mail order prefer to place their orders over the phone (38 %). E-mail/Internet order-ing, at 30 %, is also very popular.

(Sou

rce:

GfK

/MRS

C,20

04)







19% 43%

12% 33%

93% 2%

92% 3%

42% 39%

47% 33%

61% 27%

52% 23%

67% 12%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

6%

30%

16%

38%

Yes63%

No37%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Germany: All respondents N: 502



Basis Western Europe: All respondentsN: 3.520




Germany

74


1. Marketing trends• In the marketing mix, the focus is on direct

marketing; this is where most resources are

invested. Trend: more “intelligent” campaigns

based on customer-data analyses, integrated

online/offline campaigns.

• Print advertisements and events will continue

to be used – even if within a limited scope.

Trend: hard selling.

• TV advertising is increasingly being ne-

glected. Trend: playful, image-oriented.

• Evolution in marketing: the trend is towards

direct marketing. There is more research into

the target groups involved and their needs

prior to the planning of marketing and com-

munication concepts.

2. Direct marketing• Budget spread in 2003/2004: in direct market-

ing, the budgets are growing by approx. 30 %

and in online advertising by approx. 50 %;

in classical advertising they are falling by

approx. 50 %.

• Amplifiers: the main amplifiers are prize

drawings. Couponing is still in its infancy,

but this too is seeing increasing use.

3. Direct marketing media most frequently used• Personalized advertising mailings are in first

place among direct marketing instruments.

• New media such as e-mail marketing are also

seeing frequent use.

• Response-controlled advertisements are

another important element in the direct

marketing mix.

• Telephone marketing also plays an important

role in many campaigns.

4. The creative side• Character of direct marketing: cost-

conscious, image-oriented, hard selling,

integrated.

• Test scenarios (live tests, based on data analy-

ses) are used in approx. 10 % of campaigns;

in many cases this is preceded by market

research.

5. Target group• Consumer attitude and behavior: quality-

and cost-conscious, safety-oriented, critical.

• Many consumers consider direct marketing

informative but are put off by the flood of

mass mailings.

• B2B communication contains more and

more interactive and online elements.

• Customer Relationship Management (CRM)

is now an established and accepted part of

marketing. Market research is performed

more often, and communications provide

focus for the individual steps in the

purchasing process.

6. Made in Germany• Germans do not automatically prefer

German products.

• Only when it comes to automobiles and

financial services do Germans prefer to

place their trust in providers from their

home country.

7. Forecasts• Trends: growth is expected in direct

marketing and in online advertising. In

classical advertising, on the other hand,

the expectation is for budgets to drop.

• Industries with opportunities: discount

products.

8. Attitude toward the EU expansion• Above all else, Germans fear a rise in prices

in connection with the expansion of the EU.

• Germans are skeptical about international

competition.

• The EU expansion will further reinforce

consumers’ increasing sensitivity to price.

(Source: Survey of marketing experts from Germany)

Germany

75

And the national language is just asextraordinary. Finnish is rich in vowels, and

they are often even combined: aa, ee, ii , oo,

uu, yy, ää, öö, ai, ei, oi, ui, yi, äi, öi, au, eu, iu,

ou, äy, öy, ie, uo, yö. An example for starters:

Mitä Kuuluu? (How are you?) – Kiitos Hyvää

(Fine, thanks.). As you can see, Finnish is a

difficult language to learn. But many Finns

speak English and German. And that provides

the best conditions for good offerings.

Especially since Finland ranks 10th in terms of

European purchasing power.

So now the only thing left to do is findsome Finns: some three-quarters of the coun-

try’s 131,000 square miles (338,000 square km)

are wooded, there are around 190,000 lakes

and roughly the same number of islands. But

sprinkled across this are 5.2 million potential

customers.

Moikka.

Hei!

It is not always a matter of free choice that

Finnish people turn the nighttime into day.

The counterpart to around 50 days’ worth of

uninterrupted polar night is the midnight

sun – in June and July, it does

not get dark.

Finland

76

1. Facts + figures


Demographic data

The provinces of Finland





Number of households connected to the Internet 1 million

Major cities/metropolitan areas (residents) Helsinki (559,718),Espoo (216,836),Tampere (197,774), Vantaa (179,856),Turku (173,686)

Sweden

Norway

Russian Federation

Helsinki

1

2

3

4

6

5




Baltic Sea

1 Lapi2 Oulu3 Länsi-Suomi

4 Itä-Suomi5 Etelä-Suomi6 Åland

Arctic Circle

Finland

77

2. Economic data

Imports and exports








Sales tax 22 %


€ 46.2 billion

€ 36.4 billion


€ 5.3 billion



Finland’s economy is livening up. Economic growth of 2.6 % to 3.1 % is forecast for 2005. But there are warn-ings against excessive optimism: according to the companies surveyed, the situation is still unstable. Private con-sumption will remain the most important factor in generating growth, and with growth of around 3 % in 2004,it will once again prove the mainstay of the Finnish economy. The positive trend can be traced primarily to taxreductions, strong real growth in wages and higher levels of capital income. Still, the high unemployment ratecould dampen growth in private consumption in 2004. Observers expect a cooling in consumption in 2005.Private consumption forecast: Projections call for consumption to rise 2.1 % in 2005 over the previous year’sfigure.


Finland

Top rate goes to Finland. A conversion rate of

23 % for advertising mailings calls for an award.

Prize drawings will boost your chances of good

response rates; these appear to meet with great

approval in Finland. Provided, of course, the

product offered suits the recipient’s interests.

The mail order business is very popular in

Finland: one in two Finns makes a mail-order

purchase at least once a year, preferably via order

card or the Internet.

78



Promising: nearly one in two Finnish recipients of advertising mailings actually reads these mailings. More thanone in three responds to them. And nearly one in four makes a subsequent purchase or pays a visit to the provider. The conversion rate of 23 % is well above the Scandinavian average rate of 16 % and makes direct-marketing dreams come true.


Read 54 %

Responded 36 %


ourc

e:G

fK/M

RSC,

2004

)



Finland Comparison: Scandinavia


Read 47 %

Responded 24 %

Purchase/visit 16 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Scandinavia” group encompasses the following countries:Denmark, Finland, Norway and Sweden.

Finland

79


Response channels

Prize drawings achieve high levels of response in Finland: 64 % of those responding to advertising mailings indicate participating in prize drawings in advertising mailings they have received. 56 % reply to their advertisingmail via reply card. More than one respondent in two places an order directly.

Yes67%

No33%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 260


N: 174

56%

64%

27%

15%

19%

54%

30%

4%

Sent reply card



Telephoned


Ordered product


Replied by fax



Finland

80



For 23 % of Finns, direct mail stands a greater chance of being noticed if sent by a well-known company. For thesame percentage, the provider’s Finnish nationality plays a significant role. High-quality mailings provide greaterease of access to 22 % of Finnish consumers. Quality is thus more important to them than a personal form ofaddress (12 %).


If the product offering appears interesting, the mailing meets with the acceptance of 80 % of Finnish consumers.42 % consider advertising mailings to be informative. 39 % indicate that direct mail arouses their curiosity.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



13%

22%

12%

23%

16%

11%

6%

23%

Positive Negative


27%

39% 42%

61%

80% 86%

(Sou

rce:

GfK

/MRS

C,20

04)



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/MRS

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Mailingsannoy me




Finland

81



Finnish consumers have a greater affinity for television (13 %) than their Scandinavian neighbors (8 %). They prefer to receive their advertising messages from the newspaper (22 %). At 7 %, though, advertising mailings stillrank well ahead of the Internet (3 %).



7%

9%

22%

19%

13%

8%

5%

3% 3% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Finland: All respondentsN: 518


Finland Comparison: Scandinavia

Finland


82


4. Consumer trends

The impact of brand power can be seen in Finland: 81 % demonstrate loyalty to tried and tested brands. Qualityplays an important role for one in two Finnish consumers. Price presides over the purchasing decision for 39 % ofFinnish consumers. 47 % of Finns consider themselves very open to new products, a figure well above theScandinavian average (39 %). Many Finns remain skeptical of “Made in Germany” as an attribute of quality.















39% 34% 27%

37% 41% 22%

54% 35% 11%

72% 21% 7%

22% 38% 40%

39% 41% 20%

17% 44% 39%

17% 25% 58%

51% 34% 15%

81% 14% 5%

25% 35% 40%

47% 34% 19%

18% 39% 43%

30% 28% 42%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Finland: All respondentsN: 518


Finland

83



More than half of Finnish consumers make mail-order purchases at least once a year. This surpasses theScandinavian average. While nearly all Finnish respondents visit food retailers several times a month, the dis-counters in Finland are not as heavily frequented as they are in their neighboring countries.


The most frequently used channels for placing mail orders in Finland are the order card and the Internet. The tele-phone also plays an important role as an ordering medium.

(Sou

rce:

GfK

/MRS

C,20

04)







9% 48%

8% 36%

99% 1%

98% 1%

61% 33%

62% 29%

59% 24%

67% 21%

48% 36%

63% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

3%

39%

38%

29%

Yes57%

No43%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Finland: all respondents N: 518



Basis Scandinavia: all respondentsN: 2,000




Finland

84


1. Marketing trends• TV advertising (including direct response

TV) ranks among the media with the greatest

range in Finland and remains very reasonably

priced. Trend: hard selling, interactive, target

group-oriented.

• Nevertheless, direct marketing is growing

increasingly significant. Trend: interactive,

lead management-oriented.

• Print advertising is still used. Trend: hard

selling.

• Evolution in marketing: the development is

toward direct marketing and CRM with

interactive channels. Objective: concentration

on existing customers with the goal

of increasing the use of products/services.

2. Direct marketing• Budget spread 2003/2004: predominantly

classical advertising is suffering, dropping

approx. 20 % due to budget cutbacks. The

budgets in direct marketing and in online

advertising are increasing by approx. 10%

each.

• Amplifiers: the lion’s share of amplifiers is

made up by prize drawings; compared to

these, incentives and couponing are used

rather rarely.

• Measures of success: response rates, conver-

sion rates, cost per interest, cost per order

(CpO), sales per lead.

3. Direct marketing media most frequently used• (Partially) personalized advertising mailings

are used the most often.

• New media, such as cell phone marketing

(SMS text messaging) and e-mail marketing

are increasingly used.


cost-oriented, integrated.


groups) are used, depending on the cam-

paign involved.

5. Target group• Consumer attitude and behavior: security-

oriented.

• Lots of consumers have a favorable view of

direct marketing.

• B2B marketing is experiencing more lead-

driven campaigns.

6. Made in Germany• With the exception of the automotive sector

and financial services (primarily banks),

German products do not sell exceptionally

well.

7. Forecasts• Marketing trends: growth is forecast for

direct marketing and in online advertising;

cuts in classical advertising are expected.

• Industries with opportunities: construction

industry.

• Industries with risks: cellular telephony.

8. Attitude toward the EU expansion• Finns are very optimistic about EU ex-

pansion, an attitude that may be traced to

expected drops in prices due to greater

competition.

• In direct marketing, the expectation is one

of continuing growth.

(Source: Survey of marketing experts from Finland)

Finland

85

The other “rules” in France are quite simple too. Yellow means: you’re the best.

Green means: you’re the quickest. And white

with red polka dots denotes the best climber.

Of course, this is only true during the Tour de

France – but after all, the colors of the maillot

jaune, maillot vert and maillot à pois rouges

are understood everywhere in the world.

You should use the French language correctly in direct marketing. Consult a

native speaker if in doubt. The chances of

good offers being well received are not bad:

France is sixth in Europe in terms of

purchasing power.

Bonne chance!

Bonjour!

If you want to reach French consumers,

do not try in August. Rule number one:

everyone is away on their long summer

vacation.

France

86


Demographic data

The administrative districts of France






Major cities/metropolitan areas (residents) Paris (2,115,757), Marseille (797,700),Lyon (416,263), Toulouse (390,712), Nice (341,016),Strasbourg (268,683)

Germany

Luxembourg

Switzerland

Spain

Paris

Italy

Belgium

AtlanticOcean

MediterraneanSea

1

29

10

1112 13

14

15 1617

18

1920 21

22

3 4

6 78

5




1. Facts + figures

1 Nord-Pas-de-Calais2 Basse-Normandie3 Haute-Normandie4 Picardie5 Île-de-France6 Champagne-Ardenne7 Lorraine8 Alsace9 Brittany

10 Pays de la Loire 11 Centre-Val-de-Loire12 Bourgogne13 Franche-Comté14 Poitou-Charentes15 Limousin16 Auvergne17 Rhône-Alpes18 Aquitaine19 Midi-Pyrénées20 Languedoc-Roussillon21 Provence-Alpes-Côte d’Azur22 Corse

France

Imports and exports





Gross National Product US $ 1,380.7 billion



Sales tax 19.6 %


€ 401.9 billion

€ 382.6 billion


€ 49.6billion


2. Economic data


France’s economy is picking up new momentum. The driving forces are stronger investment confidence onthe part of industry, and private consumption. The latter increased in the first quarter of 2004 by 1.1% over theprevious quarter. Income tax was cut in 2004 to stimulate private demand. However, observers expect that con-sumption will not give a large boost to growth, but will be outstripped as the driving economic force by invest-ment in the course of the year.Private consumption forecast: Consumption will probably rise 1.6 % in 2004 and an additional 1.5 % in 2005.

Das aktuelle Wirtschaftsklima

87


France

Direct marketing goes down well! Given a

conversion rate of 11%, companies active in direct

marketing can also expect good response and sales

rates in future.

There is a high affinity for mailings in France.

Direct mail arouses consumer curiosity – provided

it has a creative design.

One important factor should be remembered in

any direct marketing concept: the French are

extremely brand-conscious, yet also very price-

oriented. Prize drawings are one means of attract-

ing attention.

88



Highly promising: 45 % of French consumers who receive mailings actually read them. 18 % respond and 11 %even make a purchase or visit the store. This figure is well above average for Western Europe.


Read 45 %

Responded 18 %

Purchase/visit 11 %

(Sou

rce:

GfK

/MRS

C,20

04)



France Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %



France

89

Response channels


79 % of responses to mailings are made with the reply card. An outstanding 60 % even respond directly byplacing an order. The response rate to prize drawings is very high: 43 %.

Yes39%

No61%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 190


N: 75

79%

43%

36%

25%

11%

60%

10%

6%

Sent reply card



Telephoned


Ordered product


Replied by fax



France

90



Here’s a surprise: a personal form of address is not so important to French consumers as a witty, colorful designof the advertising mailings. Less surprising is the fact that many French consumers prefer well-known companiesand providers from their own country.

Positive Negative


31%

53%47%

61% 61%

83%

(Sou

rce:

GfK

/MRS

C,20

04)



Advertising mailings arouse the curiosity of more than half of all French consumers. Mailings with a relevantproduct offering meet with acceptance by 61 %.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



20%18 %

14 %

32 %

21 %18 %

10 %

24 %


(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




France

91



Affinity with advertising mailing in France is 14 %, well above the average for Western Europe (9 %). The popu-larity of the other advertising media largely reflects that in the rest of Western Europe.



14%

9%

26%24%

13%14%

8%6%

4% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis France: All respondentsN: 503


France Comparison: Western Europe

France


92


4. Consumer trends

French consumers are extremely brand-conscious (79 %), yet their quality orientation is below-average (27 %). Inaddition, an above-average number of French people are loyal to their national providers, which may be a reasonwhy they are mainly indifferent to products “Made in Germany”. Their price orientation is 44 %, well above theaverage for Western Europe (34 %).















44% 40% 16%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

27% 32% 41%

79% 14% 7%

21% 48% 31%

43% 36% 21%

21% 43% 36%

25% 31% 44%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis France: All respondentsN: 503


France

93



Specialty markets enjoy huge popularity in France: more than 90 % shop at them more than once a month, com-pared with a European average of 52 %. Discounters also entice the price-conscious French to shop regularly attheir stores. Mail ordering is popular: 54 % of French consumers order products through this channel.


The order card (40 %) and phone (35 %) compete for the top spot as the most popular means of mail ordering inFrance. Online media lag well behind.

(Sou

rce:

GfK

/MRS

C,20

04)







14% 40%

12% 33%

94% 3%

92% 3%

67% 24%

47% 33%

90% 5%

52% 23%

49% 18%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

2%

18%

40%

35%

Yes54%

No46%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis France: All respondents N: 503







France

94


1. Marketing trends• TV marketing in the conventional sense tops

the rankings for the most frequently used

marketing instruments, followed by direct

marketing and print advertising.

• In TV advertising, there is a trend toward

comparative advertising and campaigns that

use Internet links as the response medium

and so encourage the consumer to visit a

website.

• There is a growing emergence of segmenta-

tion and personalization strategies in direct

marketing.

• Print advertising is very design-oriented.

• The target group that is the main focus of

business activity in 2003/2004: senior citi-

zens, dinks (double income no kids), young

families with 2 children, and young mothers.

• Evolution in marketing: away from anony-

mous mass marketing to direct marketing

(personalized, selective offers with response

tools and tracking options).


being cut in direct marketing (by approx.

15 %) and in classical advertising (by approx.

10 %). They are growing in online advertising

by approx. 15 %.

• Amplifiers: couponing is a very popular

incentive tool. Loyalty offerings are also

widespread.

• Measures of success: increase in sales and

profits, return on investment, cost per

respondent, cost per order, response rates

and conversion rates.

3. Direct marketing media most frequently used• The most frequently used direct marketing

instruments are (partly) personalized

mailings.

• Internet and e-mail marketing are growing in

importance.

• Whereas telephone marketing is widespread,

cell phone marketing (SMS text messaging)

still plays a minor role.



• Test scenarios (qualitative and quantitative)

and market research (panel research) are

implemented for most campaigns.


conscious, safety-oriented, but willing to

try something innovative.

• Service orientation is growing in importance.

• French consumers perceive direct marketing

as informative.

6. Made in Germany• German brands are especially popular when

it comes to automobiles and in the manufac-

turing and services sectors.

• German providers also have good opportuni-

ties among French consumers in the fashion

and textile segments.

7. Forecasts• Trends: a decline in budgets is expected in

direct marketing and classical advertising;

increases are anticipated in online advertis-

ing.

• Industries with opportunities: pharma-

ceuticals.

• Industries with risks: fast-moving consumer

goods.

8. Attitude toward the EU expansion• Not everyone in France has an optimistic

attitude toward the EU.

• Many French are skeptical about growing

international competition.

(Source: Survey of marketing experts from France)

France

9595

The United Kingdom has as many facetsas regions and nationalities. For instance,

more than 1 million Indians live there – but it

is probably more difficult to strike the right

note with the Welsh or Scots. The British love

creative advertising, humor and self-irony.

Direct marketing is accepted. If well desi-

gned, it holds out the prospect of high conver-

sion rates: the British have the third-largest

purchasing power in Europe.

Good luck!

Hello!

Be it J.R.R. Tolkien or J.K. Rowling, the

United Kingdom is where success stories

are written. But you don’t have to know how

to play Quidditch to reach the British

consumer.

United Kingdom

96


Demographic data

The administrative regions of the United Kingdom






Major cities/metropolitan areas (residents) London (7,357,100), Birmingham (1,010,400),Leeds (726,100), Glasgow (609,400),Sheffield (530,100), Bradford (486,100)

Atlantic

Ireland

North Sea

London1

2

34

6

7

5

10

8

11

9




1. Facts + figures

1 South West2 South East3 Wales4 West Midlands5 East Midlands6 East Anglia7 North West8 Yorkshire and Humberside9 Northern

10 Northern Ireland11 Scotland

United Kingdom

97

Imports and exports



Number of businesses 3,746,370


Gross National Product US $ 1,477 billion


Unemployment rate 5 %

Sales tax 17.5 %


€ 271.4 billion

€ 338.4 billion


€ 32billion


2. Economic data


The upturn in the UK continues. The economy will grow in 2004 by at least 3 %. Inflation will rise only slightlyand unemployment will remain low. Private consumption, one of the key driving forces, is once again expected togrow more strongly in 2004 than in the previous year, before entering calmer waters as of 2005. Retail sales inthe first five months of 2004 increased by a total of 6.5 %, twice as strongly as the year before.Private consumption forecast: Consumption will probably rise 3.2% in 2004 and by an additional 2.5% in 2005.


United Kingdom

98

3. Direct marketing trends (1)The British are open to international prod-ucts. The origin of a product is not important for

many consumers, so foreign companies have good

chances of arousing interest.

The British can also be persuaded with creative

and high-quality mailings as well as with a good

offer: consumers are very price-conscious.

A noticeable point: the response medium used

most frequently by the British in direct marketing

and mail order is the phone. Their affinity for the

Internet is also striking in comparison with the

rest of Western Europe.


A third of all British who receive mailings actually read them. 12 % respond to them, which is in line with theaverage for Western Europe. The conversion rate (purchase or visit) is 5 %.


Read 33 %

Responded 12 %


ourc

e:G

fK/M

RSC,

2004

)



United Kingdom Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %



United Kingdom

99

Response channels


The hit parade for the most frequently used means of responding to advertising mailing has the phone in the topspot (60 %), the reply card in second place (56 %), followed by purchase/order (45 %).

Yes36%

No64%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 138


N: 50

56%

35%

32%

60%

23%

45%

9%

3%

Sent reply card



Telephoned


Ordered product


Replied by fax



United Kingdom

100



Mailings from well-known companies have a slight lead (22 %). However, other providers can catch up easily iftheir mailings have a creative (19 %) and high-quality (17 %) design. British consumers also attach importance toa personal form of address (17 %).


Direct mail arouses the curiosity of 39 % of British consumers. Once this has been achieved, the British likereading advertising mail – especially if the product being offered appears interesting (70 %). 32 % of consumersconsider mailings to be informative.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



19%17% 17 %

22%

13% 13%

5%

14%

Positive Negative


19%

39%32%

73% 70%

92%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




United Kingdom

101



The affinity of British consumers for print advertising and mailings is below the average for Western Europe. Incontrast, the acceptance of advertising via Internet is above average.



3%

9%

19%

24%

15%14%

6% 6% 6%

3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis United Kingdom: All respondentsN: 499


United Kingdom Comparison: Western Europe

United Kingdom


102


4. Consumer trends

Price orientation (47 %) plays an exceptionally large role in the United Kingdom compared with the rest ofWestern Europe. However, it is exceeded by the quality-consciousness of the British (59 %). Furthermore, 64 %stated that they have no preference for national providers. High brand awareness (70 %), openness to new pro-ducts (40 %) and the fact that a quarter of British consumers associate “Made in Germany” with quality are rightin line with the average for Western Europe.















47% 34% 19%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

59% 32% 9%

70% 22% 8%

23% 49% 28%

40% 42% 18%

25% 43% 32%

12% 24% 64%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis United Kingdom: All respondentsN: 499


United Kingdom

103



Mail ordering is very popular in the United Kingdom: 18% of the British buy at least once a month via this channel.


British mail order customers use the phone as the most frequent way of ordering (59 %). E-mail and the Internetalso play an extremely prominent role.

(Sou

rce:

GfK

/MRS

C,20

04)







18% 29%

12% 33%

94% 3%

92% 3%

38% 28%

47% 33%

60% 19%

52% 23%

42% 24%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

2%

38%

20%

59%

Yes47%

No53%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis United Kingdom: All respondents N: 499







United Kingdom

104


1. Marketing trends• Direct marketing is the number one instru-

ment. Trend: an increase in hard selling tac-

tics, coupled with incentives, above all via

telemarketing and e-mail spamming.

• Print advertising comes in second. Trend: it

is used more for marketing support and less

as a means of communicating information or

as a sales instrument.

• Companies use TV advertising above all for

genuine mass market products. Trend: direct

response TV fills the daily schedule with hard

selling methods.

• Evolution in marketing: for reasons of cost

effectiveness and measurability, there is a

trend away from mass marketing and toward

selective, personalized marketing.

• The mood in marketing is extremely positive

thanks to a general increase in budgets.

2. Direct marketing• Budget spread in 2003/2004: in direct market-

ing, budgets are growing by approx. 10 %,

in online advertising by approx. 10 % and in


• Amplifiers: incentives are popular, but prize

drawings and couponing are seeing increas-

ing use.

3. Direct marketing media most frequently used• Personalized and partly personalized adver-

tising mailings and telemarketing are the

most used media.

• Response advertisements and supplements

are the preferred direct marketing instru-

ments.

4. The creative side• Character of direct marketing: cost-

conscious, image-oriented, playful, narrative,

integrated.

• Single-step mailings are predominantly used.

• Existing campaigns are regularly adapted;

however, there is still a large share of tailor-

made direct marketing concepts.

• Test scenarios and market research are con-

ducted in advance extremely rarely.


conscious, price-oriented, critical, willing to

try something innovative.

6. Made in Germany• German companies in the automotive and

manufacturing industries and in the fashion

and textile sector enjoy a good reputation.

7. Forecasts• Marketing trends: growth rates are forecast in

direct marketing, online advertising and clas-

sical advertising.

8. Attitude toward the EU expansion• Growing patriotism can be perceived in

connection with the expansion of the EU.

• As well as a fear of an increase in the

number of immigrants, there is growing

skepticism about the actual economic

benefits of a large European Union.

(Source: Survey of marketing experts from the UK)

United Kingdom

105105

Italians may be more colorful at times,and they enjoy promotional gifts. But as

far as content is concerned, one shouldn’t

overdo it: the Italian laws on advertising pro-

hibit misleading advertising. It is also a matter

of courtesy to include a title in your form of

address, even if it is doubtful whether the

addressee has any at all.

Selling in Italy requires particularly well-developed sensitivity at all times.Knowing your customers and country is a top

priority. “Fare bella figura” – making a good

impression – is a key concept for Italians. To

operate successfully in the Italian economy,

you need to establish a relationship of trust,

based on patience, tolerance and personal

communication. Informational material in

Italian is also indispensable.

In bocca al lupo!

Buongiorno!

Bella Italia! With its cuisine, its culture and

its landscape, one of the most popular

vacation spots is delightfully diverse.

Italy


Demographic data

The Regions of Italy






Major cities/metropolitan areas (residents) Rome (2,655,970), Milan (1,301,551), Naples(1,000,470), Turin (900,987), Palermo (679,290),Genoa (632,366)

France

Switzerland Austria

Slovenia

Rome

1

2

3

4 6

78

910

5

11

12

14

1516

17

19

20

18

13




1. Facts + figures

Mediterranean Sea

Mediterranean Sea

1 Valle d’Aosta2 Piedmont3 Lombardy4 Trentino-Alto Adige5 Veneto6 Friuli-Venezia-Giulia7 Liguria8 Emilia-Romagna9 Tuscany

10 Umbria11 Marche12 Lazio13 Abruzzo14 Molise15 Campania16 Basilicata17 Puglia18 Calabria19 Sicily20 Sardinia

106

Italy

107

Imports and exports



Number of businesses 4 million


Gross National Product US $ 1,124 billion



Sales tax 20 %


€ 258.2 billion

€ 257.1 billion


€ 33.7billion


2. Economic data


Italy remains near the bottom of the growth charts in the EU. Only in 2005 is the economy expected togrow noticeably, by 2.3 %. The GDP will grow by only 0.8–1 % in 2004. Delays in implementing reforms,stagnating consumption figures and the growing pressures of competition are slowing development down. Theplanned labor market and pension reform, which has meanwhile been watered down, is not expected to comeinto effect until 2008. The tax reform promised three years ago is still supposed to be tackled in the course of2004, which will stimulate private consumption. Full employment in several northern Italian regions, (Trento-South Tyrol, Veneto) contrasts with double-digit unemployment in southern Italy.Private consumption forecast: Projections predict consumption will grow 2.3 % in 2004, and in 2005 by 2.1 %over the previous year’s figure.


Italy

Italy is overtaking Western Europe. Italian

consumer response behavior to direct mail and

the actual conversion rate holds their own in

comparison with the remainder of Western

Europe. Decisive for mailings are their high quali-

ty and informative content. The products adver-

tised must offer the right price/performance ratio,

and then “Made in Germany” has a chance.

Winning Italians’ trust pays off in the long run:

they remain loyal to a brand once they are satis-

fied with it.

108



Mailings arrive safely: 57 % of Italian recipients read their direct mail, and 16% respond. These are values that –in the same vein as the conversion rate of 13 % – markedly surpass the Western European average.



Read 57 %

Responded 16 %

Purchase/visit 13 %

(Sou

rce:

GfK

/MRS

C,20

04)



Italy Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %


Italy

109

Response channels


66 % of Italian respondents fill out a reply card. More than half visit the provider’s business in person to formtheir own impressions. And a full 49 % place an order immediately.

Yes28%

No72%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 263


N: 73

66%

19%

36%

37%

19%

49%

56%

11%

Sent reply card



Telephoned


Ordered product


Replied by fax



Italy

110



Italians prefer high-quality mailings: 50 % indicate that fine design arouses their curiosity. A witty and colorfullook plays an important role for 34 % of Italians. A well-known name opens the door to mail advertising for 40 % of Italian consumers, and the audience is quite more receptive to national providers.


Essentially, Italians are favorably disposed to direct mail: 67 % consider mailings informative. Mail advertisingarouses the curiosity of 59 % of Italians. An interesting product offering raises the acceptance level of mailingsin Italy.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



34%

50%

24%

40%

34%

22%

13%

29%

Positive Negative


30%

59%67%

47%

66%75%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Italy

111



Direct mail as runner-up: one Italian in four indicates a preference for receiving advertising via mailing. This isonly slightly bettered by the newspaper, with 27 %. Compared with this, TV advertising has a lower relative importance (20 %) among Italy’s more popular advertising media.



25%

9%

27%

24%

20%

14%

7% 6% 6%

3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Italy: All respondentsN: 500


Italy Comparison: Western Europe

Italy


112


4. Consumer trends

Price (54%) beats quality (49%) – although only narrowly, since both play an important part in Italian purchasingdecisions. Once a brand has been found to perform well, 72 % of Italians remain loyal to it. German providers first have to put their “Made in Germany” quality to the test. At 37 %, Italians’ preference for national providersexceeds the Western European average in a way that resembles their Spanish neighbors.















54% 32% 14%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

49% 36% 15%

72% 22% 6%

21% 44% 35%

45% 35% 20%

18% 41% 41%

37% 30% 33%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Italy: All respondentsN: 500


Italy

113



Compared with the rest of Western Europe, the Italian mail order business is still in its infancy. Nonetheless, morethan one Italian consumer in four makes use of this channel. Despite a pronounced price-consciousness, only 36 %of respondents visit discounters more than once a month, a figure below the Western European average (44 %).


If an Italian places a mail order, for the most part he or she will do so by way of an order card (47 %). One mailorder customer in four also places orders over the telephone.

(Sou

rce:

GfK

/MRS

C,20

04)







4% 25%

12% 33%

91% 5%

92% 3%

35% 42%

47% 33%

63% 27%

52% 23%

36% 24%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

9%

18%

47%

25%

Yes29%

No71%


(Sou

rce:

GfK

/MRS

C,20

04)

Basis Italy: All respondents N: 500







Italy

114


1. Marketing trends• Direct marketing is entering, albeit with

some delay, the field of focus of economic

activity. Trend: informative, innovative,

adequately humorous.

• Print advertising continues to play a sig-

nificant role in Italian marketing. Trend:

highly emotional (not hard selling-

oriented), informative, attention-grabbing,

campaign-oriented.

• Sales promotion remains an important

instrument in the Italian marketing mix,

but TV advertising is being neglected.

• Evolution in marketing: a more targeted

approach to communication should achieve

more profitable results despite budget cut-

backs. This is why investment in direct

marketing is increasing, to the detriment

of classical marketing.


increasing by approx. 15 % in direct

marketing, and by approx. 10 % in online

advertising; classical advertising budgets are

falling by approx. 20 %.

• Amplifiers: prize drawings and coupons

are frequently used as amplifiers.

3. The direct marketing media used most frequently• Personalized direct mailing is used most

often.

• The Internet also plays an outstanding role

in the direct-marketing mix.

• Telephone advertising and cell phone

marketing (SMS text messaging) are already

widespread and continue to grow steadily.


cost-conscious, image-oriented, playful,

integrated.

• Test scenarios and market research are used

if required.


oriented, quality-conscious, critical,

enthusiastic about innovations.

• Italians view direct marketing as informative.

6. Made in Germany• “Made in Germany” is a good sales argument

in particular for services and for companies

in the manufacturing trades.

• German workmanship enjoys a solid

reputation in the automotive sector as well.

• German mail order business also resonates

well with Italian consumers.



cutbacks are expected in classical advertising.

• Industries with opportunities: insurance

companies.

• Industries with risks: retail trade.

8. Attitude toward the EU expansion• Italians are optimistic about EU expansion;

they hope for new opportunities in the labor

market and anticipate drops in prices.

• Direct marketing will continue to grow,

targeting increasingly well-informed Italian

consumers and serving them profitably in a

context of increasingly stiff international

competition.

(Source: Survey of marketing experts from Italy)

Italy

115

Water shapes the whole country – whichis why the Netherlands is very popularwith those who like yachting or vaca-tioning by the beach. The Dutch are not

only hospitable, but are also one of the most

interesting target groups.

As a traditional trading nation, the Dutchvalue foreign products and services andabove all pay attention to quality andcompetitive prices. So it is worth emphasiz-

ing these aspects in direct marketing. But you

should never forget one thing: mailings for

end consumers should be in Dutch.

Veel succes!

Goedendag!

It used to be the windmills, but now it is

state-of-the-art pumping stations that

ensure large areas remain dry – around a

quarter of the country is below sea level.

The Netherlands

116


Demographic data

The provinces of the Netherlands






Major cities/metropolitan areas (residents) Amsterdam (731,288), Rotterdam (592,673),the Hague (442,356), Utrecht (233,667),Eindhoven (201,728), Tilburg (193,116)

Germany

North Sea

Belgium

1

23

4

6

7

8

5

9

11

12

10




1. Facts + figures

1 Limburg2 Zeeland3 Noord-Brabant4 Zuid-Holland

5 Gelderland6 Utrecht7 Noord-Holland8 Flevoland

9 Overijssel10 Friesland11 Drenthe12 Groningen

Amsterdam

The Netherlands

117

Imports and exports




Economic growth Real growth of -0.7 % in GDP (over previous year)




Sales tax 19 %


€ 223.8 billion

€ 200.5 billion


€ 41billion


2. Economic data


Dutch companies intend to invest more. Investment in the Netherlands has been extremely flat in recent years,but will probably increase slightly in 2004. However, companies are less optimistic about 2005. The indicator forproducer confidence showed a sharp rise in May 2004. However, consumer confidence remained moderate.


The Netherlands

118

3. Direct marketing trends (1)The Dutch are open to good offers. Quality is

extremely important to consumers. The Dutch are

less price-oriented and prefer to spend their

money on quality products. The acceptance of

international providers is very high compared

with the rest of Western Europe.

And how do the Dutch respond to mailings? First

of all, they wish to learn more – by requesting

further information or visiting the company that

has advertised.

Creativity goes down well in direct marketing, as

does a personal form of address. If they are inter-

ested in the product, it is very likely that Dutch

consumers will pay attention to the mailing.


39 % of Dutch consumers read the advertising mailings they receive, slightly above the average for WesternEurope. Their response is somewhat more hesitant than that of their European neighbors: 8 % respond to mailings. The conversion rate (purchase or visit) is 4 %.


Read 39 %

Responded 8 %


ourc

e:G

fK/M

RSC,

2004

)



The Netherlands Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %



The Netherlands

119

Response channels


Many Dutch recepients (58 % of those who respond) request further informational material after they receive themailing. The same number use the reply card. At 41 %, the percentage who visit the provider directly in response toadvertising mailings is also high.

Yes20%

No80%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 148


N: 29

58%

11%

58%

24%

34%

36%

41%

11%

Sent reply card



Telephoned


Ordered product


Replied by fax



The Netherlands

120



For many Dutch consumers, how well-known a company is (24%) is decisive in regard to their interest in the mailing. A colorful (18%) and witty (17%) design arouses the curiosity of Dutch consumers in mailings, as does apersonal form of address.


The acceptance of mailings can still be increased in the Netherlands. If the provider succeeds in presenting aninteresting product in an entertaining way, the curiosity of Dutch consumers can be aroused.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



17%

9%

17 %

24%

18%

11%

5 %

12 %

Positive Negative


19% 21%32%

47%

63% 67%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



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The Netherlands

121



The leading advertising medium in the popularity ratings of Dutch consumers is the newspaper (22 %). Direct mailstill has potential (6 %). The Internet is hardly accepted as an advertising medium at all (a meager 2 %).



6%

9%

22%

24%

9%

14%

3%

6%

2%3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Netherlands: All respondentsN: 500


Netherlands Comparison: Western Europe

The Netherlands


122


4. Consumer trends

Quality is what counts: 80 % of Dutch consumers are willing to pay extra for good quality. A quarter believe that“Made in Germany” is a sign of quality. In contrast, price does not play a crucial role in a decision to purchase aproduct: only 12 % select the cheapest provider and 41 % do not pay attention to price. The acceptance of inter-national providers is 54 %, well above the average for Western Europe: 82 % of Dutch consumers state that theyhave no preference for national products.















12% 47% 41%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

80% 15% 5%

67% 23% 10%

23% 45% 32%

34% 43% 23%

24% 51% 25%

6% 12% 82%

(Sou

rce:

GfK

/MRS

C,20

04)



The Netherlands

123



Since price does not play a major role, the figure for visits to discounters comes as no surprise either: at 11 %,the Netherlands is well below the average for Western Europe (44 %). Mail ordering in the Netherlands still offerspotential: just under a third of all Dutch consumers say that they use this channel for shopping.


Email/Internet (40 %) and the phone (34 %) are the most used mail ordering channels in the Netherlands.However, the order card is also used by one in every five mail order shoppers.

(Sou

rce:

GfK

/MRS

C,20

04)







5% 26%

12% 33%

97%

92% 3%

46% 32%

47% 33%

8% 14%

52% 23%

11% 19%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

0%

40%

19%

34%

Yes31%

No69%


(Sou

rce:

GfK

/MRS

C,20

04)




Basis Western Europe: All respondentsN: 3.520




The Netherlands

124


1. Marketing trends• Direct marketing is oriented toward hard

selling.

• Print advertising is mainly informative.

• TV advertising tends toward hard selling,

but is humorous.

• Evolution in marketing: due to the economic

situation, the trend is moving away from

mass marketing; however, despite an increase

in direct marketing, we still cannot talk of

genuine customer relationship management

(individual measures still predominate).

2. Direct marketing• Budget spread in 2003/2004: in direct

marketing, budgets are being reduced by

approx. 30 %, and in online advertising

by approx. 20 %.

• Amplifiers: incentives, but above all prize

drawings, are the main amplifiers used.

• Measures of success: response rates,

conversion rates and cost per order.

3. Direct marketing media most frequently used• Whereas – as in many European countries –

personalized mailings are well at the top of

the list of the most-used direct marketing

instruments, banners, e-mail marketing and

Internet advertising are, surprisingly, ranked

among the top media.


bring up the rear.


hard selling and integrated.

• Multiple-step mailings are often used.

• Although test scenarios (piloting before

rollout) are – albeit rarely – used in advance,

hardly any market research is conducted.


conscious, critical.

• Many consumers are restrained, in antici-

pation of better economic times.

• Direct marketing is perceived by consumers

as being informative.

6. Made in Germany• With the exception of automobiles, German

products have trouble gaining the acceptance

of Dutch consumers.


direct marketing and online advertising.

However, cuts are anticipated in classical

advertising.

8. Attitude toward the EU expansion• The Dutch are very skeptical about EU

expansion and intensifying international

competition.

• Direct marketing will grow as competition

increases.

(Source: Survey of marketing experts from the Netherlands)

The Netherlands

125

Along with its fascinating landscape,Norway also has very attractive economicdata to offer. For example, Norwegians have

a low unemployment rate coupled with high

purchasing power, which is why they can

afford high-quality products – products offe-

red more often and at much higher prices than

in other European countries.

Norwegians appreciate discerning advertising,

which at the same time conveys solid and

practical information.

Lykke til!

God dag!

Norway is where Europe ends – Hammerfest

is its northernmost city. And even if one

of the worlds’ most famous paintings –

Edward Munch’s The Scream – conveys a

sense of the end of the world, in reality the

truth is far from it.

Norway

Oslo

1

2

3

4

6

78 9

10

5

11 12

14 15

16

171813

19

126

1. Facts + figures


Demographic data

The provinces of Norway






Major cities/metropolitan areas (residents) Oslo (512,589), Bergen (230,948),Trondheim (150,166), Stavanger (108,848),Kristiansand (73,087), Fredriksstad (68,143)

Arctic Circle

Finland

Russia




Norwegian Sea

1 Finnmark2 Troms3 Nordland4 Nord-Trøndelag5 Sør-Trøndelag6 Møre og Romsdal7 Hedmark8 Sogn og Fjordane9 Oppland

10 Hordaland11 Buskerud12 Akershus13 Rogaland14 Vest-Agder15 Aust-Agder16 Telemark17 Vestfold18 Østfold19 Oslo

Sweden

Norway

127

2. Economic data

Imports and exports







Sales tax 24 %


€ 60.4 billion

€ 35.3 billion


€ 13.3billion




Norwegian economy with clear upward trend. The economic recovery that began in mid-2003 is projected tocontinue in 2004 and 2005. The engine driving this development consists primarily of low interest rates, theexchange-rate devaluation, strong growth in private consumption and the revival in industrial investment. Despitea sustained exodus of industrial and, recently, service operations abroad, the broad tendency in the labor marketis likely to be one of improvement as a result of the general economic situation.Private consumption forecast: Consumption is projected to grow by 5 % in 2004, and by 5.3 % in 2005 overthe previous year’s figures.


Norway

Open to all comers: Norwegian consumers are

open-minded toward international providers and

new products alike.

Curiosity for direct mail can be aroused even

further, particularly through witty design. When

it comes to the Norwegian affinitiy for advertising

media, mail advertising is nevertheless second

only to newspapers.

Mail order is an established purchasing channel

for Norwegian consumers. 40 % shop in this way

regularly. It is worthwhile to offer Internet as an

alternative ordering channel to the order card.

128



Norwegians still react with restraint to direct mail, when compared with their Scandinavian neighbors: 44 % regu-larly read their mail advertising. But only 14 % respond, 12 % with a purchase/visit. Nevertheless, this conversionrate represents a solid basis for successful direct marketing.


Read 44 %

Responded 14 %

Purchase/visit 12 %

(Sou

rce:

GfK

/MRS

C,20

04)



Norway Comparison: Scandinavia


Read 47 %

Responded 24 %

Purchase/visit 16 %



Norway

129

Response channels


Of Norwegians who responded to an advertising mailing in the past year, 63 % indicate having done so via replycard. Direct mail has also managed to achieve a direct order from the same number of consumers.

Yes32%

No68%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 199


N: 64

63%

8%

32%

24%

24%

63%

37%

5%

Sent reply card



Telephoned


Ordered product


Replied by fax



Norway

130



A quarter of Norwegians appear to trust direct mail coming from a well-known company. Among 18 % ofNorwegians, mailings by national providers stand a better chance of favorable reception. One Norwegian in five isfavorably disposed toward a mailing with a witty presentation.


For the majority of Norwegian consumers, the product offering is of overriding importance in determining whether the direct mailing will be accepted or not. One Norwegian in two considers mailings interesting andinformative.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



19%17%

15%

26%

14%

8%

16%18%

Positive Negative


35%52% 55%

65%83%

93%

(Sou

rce:

GfK

/MRS

C,20

04)



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/MRS

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04)



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Norway

131



Advertisements appearing in the newspaper lead in Norway as well, but here this preference, at 16 %, is notnearly as pronounced as it is among Norway’s Scandinavian neighbors. And direct mail follows in second place,where it has already achieved an affinity rate of 11%. As in most of the Scandinavian countries, TV advertisingdoes not have a good reputation among consumers.



11%

9%

16%

19%

7%8%

3% 3%2%

3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Norway: All respondentsN: 499


Norway Comparison: Scandinavia

Norway


132


4. Consumer trends

Norwegians unanimously deny their patriotism: three quarters of them emphasized that they would not give aprovider any preferential treatment based simply on its Norwegian nationality. Still, the “Made in Germany” labelis only decisive in purchasing decisions for a minority of respondents. They are open not only to foreign compa-nies but to new products as well, according to 41% of Norwegians. A good brand can inspire loyalty in 65 % ofNorwegian consumers. The right level of quality is important to one Norwegian in two. At 37 %, price is of sub-ordinate importance to quality, a finding in keeping with the Scandinavian average.















37% 45% 18%

37% 41% 22%

54% 35% 11%

72% 21% 7%

22% 38% 40%

39% 41% 20%

17% 44% 39%

17% 25% 58%

51% 39% 10%

65% 24% 11%

24% 37% 39%

41% 36% 23%

18% 44% 38%

10% 15% 75%

(Sou

rce:

GfK

/MRS

C,20

04)



Norway

133



One-third of Norwegians shop mail order more than once a year, 8 % of them even several times a month. AllNorwegian consumers surveyed shop at food retailers more than once a month. Despite a subordinate priceorientation among consumers, discounters are frequented at above-average rates.


The Internet is the favorite means of ordering for 45 % of Norwegian mail order customers. Nearly one in threesends in a reply card to submit his or her order; a similar number resolve the matter directly over the telephone.

(Sou

rce:

GfK

/MRS

C,20

04)







8% 32%

8% 36%

100%

98% 1%

62% 29%

62% 29%

73% 18%

67% 21%

69% 15%

63% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

6%

45%

29%

28%

Yes40%

No60%


(Sou

rce:

GfK

/MRS

C,20

04)








Norway

134


1. Marketing trends• TV advertising (which also includes direct

response TV) occupies first place in the

marketing mix. Trend: less emotional,

better-coordinated campaigns.

• Direct marketing still lags behind sales

promotions and events in the ranking of

marketing instruments. Trend: toward

higher quality, more targeted approach.

• Print advertising is subject to increasing

neglect due, among other things, to the

increasing significance of the Internet.

• Target group on which businesses

particularly set their sights in 2003-2004:

senior citizens.

• Evolution in marketing: a change of course

is emerging, toward the Internet and direct

communication. CSR (Corporate Social

Responsibility) is gaining in significance.

• The mood in marketing is positive, also with

regard to budget expansion.

2. Direct marketing• Budget spread in 2003-2004: online

advertising will grow by approx. 50 % and


3. Direct marketing media most frequently used• Non-personalized, partially personalized

and personalized direct mail is used most

frequently.

• Banners and Internet are pushing more and

more into the upper echelons.

• Response-driven tools, including direct

response radio and direct response TV, are

bringing up the rear.

• What is also conspicuous is that while the

Internet is a popular channel, e-mail market-

ing is not meeting with a great response.

4. The creative side• Character of direct marketing: cost-oriented,

integrated.


oriented, critical, price-conscious.

6. Made in Germany• German products sell particularly well in the

automotive sector and in financial services.

• IT products and services from Germany are

also favorably received.

• In the mail order business, German products

do not seem to have developed any extraordi-

nary reputation to date.

• A good image and a local presence on the

part of foreign companies are absolute pre-

conditions for business success in Norway.

7. Forecasts• Marketing trends: use of online advertising

will increase.

• Industries with opportunities: Internet

services.

8. Attitude toward the EU expansion• For the time being, Norway will not join

the EU. The population is divided over the

question, although the majority is leaning

against membership in the EU.

• Consumers are growing increasingly critical.

• The competitive environment is growing

tougher.

(Source: Survey of marketing experts from Norway)

Norway

135

Austrians like it brash. Mailings can convey

more scorn and humor than in Germany. So

anyone who takes into account the country’s

peculiarities has good chances in Austria. But

take care when it comes to personalized adver-

tising: Austrians attach importance to the right

form of address – especially titles. Anyone

wanting to advertise successfully would be best

advised to learn the difference between a

“Hofrat” and a “Magister”.

According to Austria’s Direct MarketingAssociation, great significance is placedon customer loyalty compared with otherfactors in the marketing mix. It is currently

more important than product quality and

brand image. The economic mood is very

buoyant; Austria is one of the world’s ten

richest countries – and is enjoying above-

average growth. An attractive country for

direct marketing activities, since German is

spoken there – in a very endearing dialect.

Viel Erfolg!

Grüß Gott!

There’s a lot to discover in Austria: what

other country can boast a district heating

plant that is also a work of art? The house

designed by Friedensreich Hundertwasser

is just one of Austria’s many unique

attractions.

Austria

Vienna

12

2

3

4

6

8

9

57

136


Demographic data

The administrative districts of Austria


Population 8 million




Major cities/metropolitan areas (residents) Vienna (1,550,123), Graz (226,244), Linz (183,504),Salzburg (142,662), Innsbruck (113,392),Klagenfurt (90,141)

Czech Republic

Germany

Switzerland

Hungary

Slovenia

Slovakia

Italy




1. Facts + figures

1 Vorarlberg2 Tyrol3 Salzburg4 Carinthia5 Upper Austria

6 Lower Austria7 Vienna8 Styria9 Burgenland

Austria

137

Imports and exports








Sales tax 20 %


€ 78.5 billion

€ 79.8 billion


€ 21 billion


2. Economic data


Reforms are stimulating the upturn. After weak growth rates in past years, the economy is picking upmomentum in 2004 and will do so a little more strongly in 2005. Private consumption, stimulated by tax cuts andlow interest rates, is also developing positively. Above all, demand for durable goods will probably experience anabove-average rise in 2005 and record real growth of 5.5 %. Retail is posting stagnating real sales. However,there is still no relaxation in sight on the employment front. The employment rate is expected to increase slightlyfrom 4.4 % in 2003 to 4.5 % in the subsequent two years.Private consumption forecast: Consumption will probably rise 1.7% in 2004 and by an additional 2.3% in 2005.


Austria

138

3. Direct marketing trends (1)Curiosity wins. 40 % of Austrians read the adver-

tising they receive by mail. So there are good

chances of attracting the attention of consumers,

especially given the fact that 39 % of respondents

said that advertising mailings were informative.

“Made in Germany” is regarded by 28 % percent

of consumers as a sign of quality. However, 32 %

of Austrians stated that they would only buy prod-

ucts from domestic providers.


8 % of those surveyed responded to a mailing by making a purchase or visit. As a result, Austria is in line with theaverage for Western Europe.


Read 40 %

Responded 11 %

Purchase/visit 8 %

(Sou

rce:

GfK

/MRS

C,20

04)



Austria Comparison: Western Europe


Read 36 %

Responded 12 %

Purchase/visit 7 %



Austria

139

Response channels


Personal contact is important: 56 % of those who respond directly visit the store/company that advertised. Therate of direct product orders is also relatively high at 38 %.

Yes29%

No71%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 190


N: 54

33%

25%

40%

21%

18%

38%

56%

5%

Sent reply card



Telephoned


Ordered product


Replied by fax



Austria

140



The name and nation are crucial: 32 % of Austrians open mails because they know the sender. For 23 % of respondents, it is important for the mailing to come from an Austrian company.


Anyone who can arouse curiosity has a good chance: 74 % of those surveyed read mailings if they are inter-ested in the product. 39 % find advertising mailings informative.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



20%

14 %

10 %

32 %

17 %

8 %10 %

23%

Positive Negative


22%28%

39%49%

74%84%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




Austria

141



The newspaper is the most popular medium in Austria at 32 %, well above average for Western Europe. Trailingwell behind this is TV advertising (17 %). Overall, the preferences for advertising media are close to the WesternEuropean average.



10% 9%

32%

24%

17%

14%

8 %6%

4% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Austria: All respondentsN: 500


Austria Comparison: Western Europe

Austria

142



4. Consumer trends

Austrians are loyal to brands (71 %) and quality-conscious (57 %), in line with the average for Western Europe.However, they are not particularly open to new products (36 %). All the same, “Made in Germany” is seen by 28 % of respondents as a sign of quality, slightly above the average for Western Europe. Nevertheless, a strikingnumber of Austrians stick to national providers (32 % compared with 17 % in Western Europe).















49% 39% 12%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

57% 31% 12%

71% 22% 7%

19 % 52% 30%

36% 38% 26%

28% 45% 27%

32% 39% 29%

(Sou

rce:

GfK

/MRS

C,20

04)



Austria

143



50 % of Austrians have an affinity for mail ordering, slightly above the average for Western Europe. Consumersshop especially frequently with discounters.


Half of all respondents use the phone for mail ordering; around a quarter use the reply card as a responsemedium.

(Sou

rce:

GfK

/MRS

C,20

04)


Food retailerComparison: Western Europe





11% 39%

12% 33%

93% 2%

92% 3%

51% 33%

47% 33%

55% 34%

52% 23%

56% 20%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

9%

20%

26%

50%

Yes50%

No50%


(Sou

rce:

GfK

/MRS

C,20

04)








Austria

144


1. Marketing trends• Direct marketing still predominates among

the marketing instruments used, but is not

showing any growth.

• Print advertising is losing out against TV

advertising. The latter is gaining in impor-

tance in Austria – unlike in most other

European countries. Trend: price-aggressive

advertising aimed at bargain-hunters.

• Bargain-hunters are the main focus of

business activity in 2003/2004.

2. Direct marketing• Budget spread in 2003/2004: the online

segment has been affected most, with budgets

being cut by approx. 30 %. There are no

changes in direct marketing.

• Amplifiers: incentives are popular, but prize

drawings and couponing are being leveraged

increasingly.

• Response rates and conversion rates are used

as measures of success.

3. Direct marketing media most frequently used• Personalized mailings top the rankings.

• E-mail advertising is also near the top of

the list.


is still not a popular medium at present.


tend to be regarded as less important.



• Adaptation of classical campaigns is more

frequent than the development of tailor-

made direct marketing concepts.

• Test scenarios (mailings to test groups, online

research) and market research (focus groups)

are relatively rare (approx. 10%).

5. Target group• Consumer attitude and behavior: safety-

oriented, price-conscious; bargain-hunting is

the big trend.

6. Made in Germany• German products from the automotive,

financial services and manufacturing sectors

sell especially well.

• Due to the “Big Brother/Little Neighbor”

syndrome, Austria is reluctant to take

“advice” from Germany and views German

offers critically.

7. Forecasts• Marketing trends: direct marketing will grow

slightly; online advertising and classical

advertising are expected to remain stable.

• Industries with opportunities: tourism.

• Industries with risks: telecommunications.

(Source: Survey of marketing experts from Austria)

Austria

145

And the economic data is impressive too.Swedes have a high purchasing power – well

above the European average – and low un-

employment. In the country of detective novel

author Kurt Wallander, direct marketing is no

thriller, but rather a well-developed sector. An

average of 67 mailings a year reach Swedish

households, with a clear trend away from

unaddressed mailings.

The Swedes adore intelligently craftedadvertising and new products. And they

also like purchasing them online. That is why

one suitable approach in Sweden is integrated

campaigns that employ an ideal combination

of the Internet and mailing.

Lycka till!

Hej!

From the snow-capped mountains in the

north to the fertile expanses of the south,

the home of Astrid Lindgren, Abba, H&M

and Ikea has a varied climate and beautiful

countryside to offer.

Sweden

146

1. Facts + figures


Demographic data

The counties of Sweden






Major cities/metropolitan areas (residents) Stockholm (758,148), Göteborg (474,921),Malmö (265,481), Uppsala (179,673),Linköping (135,066), Västeras (128,902)

Arctic CircleFinland

Stockholm

1

2

34

6

87

9

10

5

11

12

14

15

16

17

19

21

20

18

13




Baltic Sea

1 Norrbotten2 Västerbotten3 Jämtland4 Västernorrland5 Gävleborg6 Dalarna7 Örebro8 Värmland9 Västmanland

10 Uppsala11 Stockholm12 Södermanland13 Västra Götaland14 Östergotland15 Jönköping16 Halland17 Kalmar18 Skåne19 Blekinge20 Kronoberg21 Gotland

Norway

Sweden

147

2. Economic data

Imports and exports








Sales tax 25 %


€ 89.4 billion

€ 73.1 billion


€ 9.5 billion



Sweden’s economy is picking up speed. The upturn is being underpinned above all by exports and privateconsumption. Low interest rates and inflation, in conjunction with nominal wages that are outgrowing inflation,mean that real wages are increasing. The willingness to consume will probably be dampened above all by theweak labor market and anticipated hikes in interest rates. Increases of 5.9 % and 10 % respectively are expectedfor the segments of durable consumer goods and tourism in 2004. The figures for 2005 are likely to be somewhat lower (6.0 % and 6.2 %).Private consumption forecast: Consumption will probably rise 2.7 % in 2004 and by an additional 3 % in 2005.


Sweden

Farewell television! Swedish consumers cannot

be reached via this channel. In contrast, 41% of

Swedes who receive advertising mailings study the

offer described in them. Providers should have the

courage to display wit, since this increases the

chances of a good conversion rate. And once they

have made a good name for their brand, they can

count on the loyalty of Swedish consumers.

Whereas Swedes mainly respond to direct mail

using reply cards, the Internet is a worthwhile

alternative channel in mail ordering.

148



Direct mail is well received: 41 % of Swedes who receive such mailings actually read them. 14 % respond tothem. 9 % of recipients then make a purchase or visit the provider directly.

Basis: Received 91%

Read 41 %

Responded 14 %

Purchase/visit 9 %

(Sou

rce:

GfK

/MRS

C,20

04)



Sweden Comparison: Scandinavia

Basis: Received 92%

Read 47 %

Responded 24 %

Purchase/visit 16 %



Sweden

149

Response channels


There is unanimity among Swedes: if they respond to mailings, they do so by returning the reply card (96 %).Last year, 64 % of people who responded placed an order directly.

Yes34%

No66%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 185


N: 63

96%

23%

46%

15%

17%

64%

17%

6%

Sent reply card



Telephoned


Ordered product


Replied by fax



Sweden

150



A well-known name creates trust and makes it easier for direct mail to reach 32 % of Swedish consumers.Mailings with a witty, colorful design are well received by the humorous Swedes.


An interesting product range smooths the path of mailings through the deluge of advertising in Sweden.43 % of Swedish respondents find that mailings are informative. There is a demand for entertaining mailings inthe country.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



18%

9%11%

32%

14%

8%

2%

19%

Positive Negative


22%

38% 43%56%

74%89%

(Sou

rce:

GfK

/MRS

C,20

04)



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Sweden

151



Television advertising is out: only 2% of Swedish consumers like it. Newspapers (19%) occupy the top spot in thepopularity rankings of advertising media in Sweden. Direct mail comes in second at 7%.



7%

9%

19% 19%

2%

8%

1%

3%4%

3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Sweden: All respondentsN: 500

Basis Scandinavia: All respondents N: 2,000

Sweden Comparison: Scandinavia

Sweden


152


4. Consumer trends

Quality (55 %) counts more than price (32 %) in Sweden. Once a brand has proven its value, 73 % of Swedesremain loyal to it. A provider does not have to come from Sweden to go down well with consumers, according to 57 % of Swedes surveyed. The label “Made in Germany” is not proof of quality in itself.















32% 45% 23%

37% 41% 22%

54% 35% 11%

72% 21% 7%

22% 38% 40%

39% 41% 20%

17% 44% 39%

17% 25% 58%

55% 38% 7%

73% 22% 5%

20% 37% 43%

32% 45% 23%

15% 43% 42%

15% 28% 57%

(Sou

rce:

GfK

/MRS

C,20

04)



Sweden

153



More than a third of Swedes make mail order purchases several times a year. Specialty markets are highly popu-lar: 69 % even shop at these several times a month. In contrast, Swedes use discounters more rarely.


Almost one person in three shops mail order using the order card. The Internet appears to be well received inSweden: 41% place orders online. The phone (37 %) is defending its position in the ranking of media used formail orders.

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/MRS

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04)







5% 34%

8% 36%

99% 1%

98% 1%

58% 32%

62% 29%

69% 23%

67% 21%

48% 30%

63% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

5%

41%

30%

37%

Yes39%

No61%


(Sou

rce:

GfK

/MRS

C,20

04)








Sweden

154


1. Marketing trends• Direct marketing, print advertising and sales

promotion are the most used marketing

measures in Sweden.

• Direct marketing leverages personalized con-

tent and offers to induce consumer response.

Trend: tactical, hard selling, very creative.

• Print advertising is also geared to consumer

response and increasingly uses amplifiers

such as couponing and sampling to achieve

this. The prime aim is to attract the

consumer to the POS. Trend: tactical;

always integrated (phone number and

website address).

• TV advertising focuses on the product.

Trend: funny, ironic (mostly created locally

and for local use), hard selling.


of business activity in 2003/2004: children

and young people, trendsetters.

• Evolution in marketing: the trend is toward

direct marketing. There is also a striking

trend toward a campaign mix with tactical

and image-oriented objectives.

2. Direct marketing• Budget spread in 2003/2004: there are cuts in

classical advertising budgets; those for direct

marketing and online advertising are grow-

ing.

3. Direct marketing media most frequently used• Partly personalized, personalized and

non-personalized mailings lead the ranking

of direct marketing media.

• Banners, e-mail marketing and telephone

advertising are also popular direct marketing

instruments.

• Direct response TV, direct response radio,

cell phone marketing (SMS text messaging)

and the Internet bring up the rear.


complex, image-oriented, hard selling, funny,

integrated.

• Test scenarios and market research are

conducted in only around 20% of campaigns.

5. Target group• Consumer attitude and behavior: there is

high consumption of do-it-yourself products

in Sweden. In contrast, luxury goods will

have fewer chances.

• Consumers are quality-oriented, price-con-

scious and critical.

• Direct marketing is regarded as informative.

• The focus in B2B is on addressing existing

customers with selective measures.

6. Made in Germany• Automobiles, fast-moving consumer goods,

electronic goods from Germany meet with

a good response.


online advertising will grow. Classical

advertising will record declines.

• Industries with opportunities:

pharmaceuticals.

• Industries with risks: fast-moving consumer

goods.

8. Attitude toward the EU expansion• The fear of increased prices dampens the

optimism of Swedes regarding EU

expansion.

• Direct marketing will grow as competition

increases.

(Source: Survey of marketing experts from Sweden)

Sweden

155

Measured in economic terms, the home ofSwiss citizens is extremely appealing too.An unemployment rate of just 2.5%, a high

labor-force participation rate, short periods of

mandatory vocational training, high wages and

low taxes make Switzerland one of the wealth-

iest countries in the world – and a direct-

marketing paradise to boot?

The pride that the quotation aboveexpresses is typically Swiss. They speak four

languages – Swiss German, Romansch, French,

and Italian – and like to be addressed in these

as well. High German, by the way, is considered

a foreign language.

So mailing campaigns developed especially for

the region involved holds the promise of suc-

cess – especially since Swiss consumers enjoy

trying out new products.

Vöu Erfolg! Bon courage! Buona fortuna!

Grüezi!

“And by the way, everything’s better and

more beautiful in Switzerland.” If you

consider the Alpine peaks, cheese, precision

watchmaking and Swiss Army knives, then

you might want to agree with Adolf Muschg,

recipient of Germany’s most prestigious

literary award, the Georg Büchner Prize.

Switzerland

156


Demographic data

The Swiss cantons






Major cities/metropolitan areas (residents) Zurich (340,873), Geneva (175,998),Basel (164,850), Bern (122,469),Lausanne (115,638), Winterthur (89,612)

France

Italy

Germany

Bern

1

2

3

4

6

7

5 10

8

11 16

15

17

18

19

12

14

20

26

25

21

2422

23

13

9




1. Facts + figures

1 Genève2 Vaud3 Neuchâtel4 Fribourg5 Jura6 Solothurn7 Bern8 Valais9 Basel-Stadt

10 Basel-Land11 Aargau12 Luzern13 Nidwalden14 Obwalden15 Schaffhausen16 Zürich17 Zug18 Schwyz

19 Uri20 Ticino21 Thurgau22 Appenzell Außerrhoden23 Appenzell Innerrhoden24 St.Gallen25 Glarus26 Graubünden

German

French

Italian

Romansch

Switzerland

157

Imports and exports








Sales tax 7.6 %


€ 89 billion

€ 85.3 billion


€ 19billion


2. Economic data


Swiss business conditions exiting the trough. The slight upturn experienced in 2003 will turn into a moderaterise in 2004, with indications of momentum gathering somewhat in 2005. The most powerful locomotive forgrowth is the exports sector, which, however, is fraught with risk as a result of global economic uncertainty. Morereliable is growth in domestic demand, primarily in private consumption, even though growth rates here are moremodest than rates of growth in exports. Aided by the economic recovery, the unemployment rate can be expectedto drop from 3.7 % in 2004 to 2.8 % in 2005. Increasing employment and stimulation of the economy will promptprivate consumption, although only slowly.Private consumption forecast: In 2004, consumption will probably rise 1 % over the previous year’s figure, andin 2005 by 1.5 % over the figure for 2004.


Switzerland

In Switzerland, direct marketing is accepted.Swiss respondents take a favorable view of mail-

ings and consider them informative. Advertising

mailings should be creative and of high quality to

receive consideration.

The high level of acceptance is demonstrated in

the good conversion rates achieved and in the way

Swiss recipients react to mailings: frequently with

an order or a visit. Prize drawings, too, are favor-

ably received.

An important factor in target group appeals:

quality is much more important than price.

In terms of their decision of whether to read the mailing or not, Swiss recipients may be somewhat more hesitant(31%) than their European neighbors (36 %). But in return, they are keen consumers and present an encouragingconversion rate of 10 %.


158



Basis: Received 85%

Read 31%

Responded 14 %


ourc

e:G

fK/M

RSC,

2004

)



Switzerland Comparison: Western Europe

Basis: Received 85%

Read 36 %

Responded 12 %

Purchase/visit 7 %


Switzerland

159

Response channels


As one sees so often in Europe, the reply card is also used most frequently in Switzerland (62 %). Persuaded bythe offerings, a full 44 % of recipients of advertising mailings proceed directly to order placement; 42 % visit theprovider’s location.

Yes45%

No55%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 131


N: 59

62%

42%

44%

22%

14%

44%

42%

8%

Sent reply card



Telephoned


Ordered product


Replied by fax



Switzerland

160



The name counts, and so does the layout: for 30 % of Swiss recipients, an advertising mailing received from afamiliar company arouses their curiosity. 29 % respond to a humorous presentation, one quarter to a high-qualityand colorful design. A personal form of address prompts 19 % of Swiss recipients to open the advertising mailing.


For three-quarters of Swiss respondents, the recipient’s level of interest in the product indicates whether theyare going to read a mailing. Encouragingly, a full 44 % of consumers in Switzerland consider advertising mai-lings to be informative.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



29%

25%

19%

30%

24%

8% 8%

23%

Positive Negative


27%39% 44%

50%

74%81%

(Sou

rce:

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/MRS

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04)



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Switzerland

161



Swiss affinity for advertising mailings is right in line with the Western European average (9 %). The affinity for TVadvertising stands out in comparison with Western Europe, at 18 %.



9% 9%

20%

24%

18%

14%

6% 6%

3% 3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Switzerland: All respondentsN: 502


Switzerland Comparison: Western Europe

Switzerland


162


4. Consumer trends

Quality has its price, and 68 % of Swiss respondents are prepared to pay a little bit more to get it. This is demon-strated in the price-orientation rate of 27 %, which is low in comparison to the Western European average. 76 %have faith in their brands. And a full 28 % of Swiss respondents associate “Made in Germany” with quality. Theyare much more receptive to new products (52 %) than their European neighbors (39 %).















27% 46% 27%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

68% 24% 8%

76% 20% 4%

19% 52% 29%

52% 37% 11%

28% 50% 22%

24% 32% 44%

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Switzerland

163



The mail order business is ascending in the land of mountainous terrain: one in every two Swiss respondents hasmade a mail order purchase in the past two years. 14 % even do so several times a month, a figure that can certainly hold its own in a European context. The use of other distribution channels essentially conforms to theaverage for Western Europe.


38 % of Swiss mail order customers trust in the order card. 33 % prefer to place their orders via Internet. 26 % ofSwiss place their orders via telephone.

(Sou

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14% 37%

12% 33%

80% 8%

92% 3%

49% 31%

47% 33%

50% 25%

52% 23%

44% 30%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

10%

33%

38%

26%

Yes51%

No49%


(Sou

rce:

GfK

/MRS

C,20

04)








Switzerland

164


1. Marketing trends• In Switzerland, direct marketing is held in

the same esteem as promotional campaigns

(approx. 30 % of all marketing instruments

used). Trend: response-driven, emotional.

• Print advertising shares second place with

sales-promotion measures (approx. 15 %).

Trend: hard selling, image-oriented.

• TV advertising does not hold any position of

note in the rankings, in which events are still

identified as an instrument used relatively

often. Trend: depending on the industry

involved, image-oriented and hard selling.

• Target group receiving particular business

attention in 2003/2004: young people,

because they are expected to deliver

higher response rates and greater levels of

commitment.

• Evolution in marketing: more and more

companies are shifting their focus from

above-the-line to below-the-line marketing.


relatively stable with a slight upward trend.

Direct marketing and online advertising are

registering growth, whereas classical

advertising is falling.

• Amplifiers: prize drawings are the

amplifiers used most often.

3. Direct marketing media most frequently used• Personalized and partially personalized

advertising mailings are the main media

used.

• E-mail marketing and banners are also used

frequently.

• Telemarketing has also achieved a level of

significance.

4. The creative side• Character of direct marketing: image-

oriented, hard selling, playful, story-telling.

• Test scenarios (ca. 30 %) are not used as

often as market research (focus groups,

quantitative).


quality-conscious, critical.

• Consumers consider direct marketing

informative.

6. Made in Germany• German products sell particularly well in the

automobile, retail and manufacturing sectors.

• Experts caution against over-emphasis on

price-driven offerings (a phenomenon

particularly conspicuous among German

companies). They recommend emphasizing

image and quality with Swiss consumers.



classical advertising will see cutbacks.

8. Attitude toward the EU expansion• Swiss respondents are actually optimistic

about moves to expand the EU. But

misgivings about rising prices dampen

their enthusiasm somewhat.

• Competition is increasing.

(Source: Survey of marketing experts from Switzerland)

Switzerland

165

It’s worthwhile discovering Spain, andnot just its culture and countryside. Direct

marketing is still considered new in Spain,

although it has already chalked up huge

growth rates. The Spanish economy is also

making positive advances; this year will

probably again see real growth above the

European average.

Spaniards are very open-minded aboutthe medium of direct advertising, asreflected in high return rates. It always

pays to enlist the services of a consultant who

knows the regional languages and customs to

ensure a successful campaign. In all direct

marketing measures it is imperative to comply

with Spain’s extremely strict data protection

legislation.

¡Mucho éxito!

¡Buenos días!

“Wouldn’t it be better to speak not of Spain,

but of the Spains?” was the question once

asked by the famous poet Juan Goytisolo.

Spain’s regions are varied and interesting,

just like its languages and regional attitudes.

Spain

166


Demographic data

The autonomous regions of Spain






Major cities/metropolitan areas (residents) Madrid (2,938,723), Barcelona (1,503,884),Valencia (738,441), Seville (684,633),Zaragoza (614,905), Malaga (524,414)

Atlantic Ocean

Portugal

Mediterranean Sea

France

Madrid

12 3 4

6

7

5

10

8

11

12

13

1415

16

17

9




1. Facts + figures

1 Galicia2 Principado de Asturias3 Cantabria4 Pais Vasco5 Navarra6 La Rioja

7 Aragon8 Catalonia9 Castilla y Leon

10 Extremadura11 Castilla-La Mancha12 Madrid

13 Communidad Valenciana14 Andalucia15 Region de Murcia16 Balearic Islands17 Canary Islands

Spain

167

Imports and exports





Gross National Product US $ 588 billion



Sales tax 16 %


€ 137.8billion

€ 184.1billion


€ 16.4 billion


2. Economic data


Spain’s economy remains dynamic. Real growth of 3 % is forecast for 2004 and 2005. Growth momentum isthus well above the average for the EU partners (+ 2 %) and is also impressive compared with OECD countries (+ 3.4 %). Boosts are coming from foreign trade and investment. The parliamentary elections in 2004 produced anupset, with a victory for the Socialist Workers’ Party (PSOE), which announced its aim of further modernizing theSpanish economy.Private consumption forecast: Consumption will probably rise 3.1 % in 2004 and by an additional 3 % in 2005.


Spain

168

3. Direct marketing trends (1)Direct marketing olé! The basically positive

attitude of Spaniards to direct marketing is

pleasing. Creativity and high quality pay off in

mailings.

Trust is everything. A popular brand not only

opens the door for mailings, but also secures long-

term loyalty on the part of Spanish consumers.

In addition, Spaniards seem to trust the good old

postal channel more than new media: the reply

card is the most popular response medium – in

direct marketing and mail order alike.


Spaniards are inquisitive: 64 % who receive mailings actually read them. 16 % respond to mailings sent to them.The conversion rate is 11%. These figures are well above the average for Western Europe.

Basis: Received 90%

Read 64 %

Responded 16 %

Purchase/visit 11%(S

ourc

e:G

fK/M

RSC,

2004

)

Basis: All respondents Basis: All respondentsN: 1.000 N: 3,520


Spain Comparison: Western Europe

Basis: Received 85%

Read 36 %

Responded 12 %

Purchase/visit 7 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Western Europe” group encompasses the following countries: Belgium, Germany, France, United Kingdom, the Netherlands, Austria and Switzerland.

Spain

169

Response channels


The postal channel is the winner: 67 % use the reply card to respond to a mailing. A huge 54 % state that theyplace an order directly. One in four people who respond to direct mail has already displayed an interest by visitingthe provider directly.

Yes26%

No74%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 573


N: 147

67%

46%

39%

41%

16%

54%

26%

8%

Sent reply card



Telephoned


Ordered product


Replied by fax



Spain

170



Familiarity breeds trust: 40 % of Spanish consumers are more willing to open a mailing if the sender is well-known or comes from their own country (41%). A high-quality appearance (38 %) and a colorful design (34 %)achieve a great effect. Humor is also welcome: a witty design arouses the curiosity of 32 % of Spaniards. Manyalso attach importance to a personal form of address.


A popular source of information: 67% of Spanish respondents consider advertising mailings to be informative andthey arouse the curiosity of every second Spaniard. Almost 40% of Spanish consumers feel that mailings areentertaining.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



32%

38%

32 %

40%

34%31%

21%

41%

Positive Negative


39%50% 67%

61%70%

86%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis: All respondentsN: 1.000

Basis: All respondentsN: 1.000

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Spain

171



The mailing comes in at 12%, just a few percentage points below the most popular medium, the newspaper (18 %) – a well above-average rating compared with the rest of Western Europe.



12%

9%

18%

24%

16%

14%

10%

6%

4%3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis Spain: All respondentsN: 1,000


Spain Comparison: Western Europe

Spain


172


4. Consumer trends

Quality (57 %) plays a crucial role in the purchasing decisions of one out of every two Spaniards, as does price (54 %). The most relevant criterion is the brand once they have tried it, 76% remain loyal. A quarter of Spaniards,who have a reputation of being tradition-conscious, are skeptical toward new providers. Nevertheless, 44 % ofSpanish consumers regard themselves as open to new products.















54% 34% 12%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

57% 32% 11%

76% 17% 7%

25% 47% 28%

44% 38% 18%

19% 41% 40%

35% 31% 34%

(Sou

rce:

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/MRS

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Spain

173



Spaniards trust specialists: 75 % shop several times a month at specialty markets, well above the average forWestern Europe (52 %). Discounters attract the price-conscious Spanish consumer to their stores several times a month. Mail ordering still appears underdeveloped compared with the rest of Western Europe.


Of the 22 % of Spanish consumers who are mail order customers, 49 % prefer purchasing using the order card.44 % have a preference for ordering by phone.

(Sou

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04)







3% 19%

12% 33%

96% 2%

92% 3%

26% 59%

47% 33%

75% 16%

52% 23%

52% 15%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

7%

26%

49%

44%

Yes22%

No78%


(Sou

rce:

GfK

/MRS

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04)








Spain

174


1. Marketing trends• Direct marketing is still in its infancy, but

is being used more and more.

Trend: combination of brand and

information with the aim of sales.

• Print advertising is used to support global

concepts. Trend: image- and product-

oriented.

• TV advertising is still conducted in the

classical sense; direct response TV is rare.

• Evolution in marketing: basically, marketing

investment is made on a moderate scale, but

below-the-line advertising currently accounts

for more than 50 % of all marketing invest-

ment. The Internet is gaining in importance

and is increasingly capturing a permanent

place in the range of marketing instruments.

2. Direct marketing• Budget spread in 2003/2004: budgets are by

and large being reduced.

• Measures of success: apart from the custom-

ary instruments, the RFM model is also used

in Spain to evaluate whether a campaign has

been successful: recency (the time since the

last purchase) – frequency (how often the

customer makes a purchase) – monetary

(how much the customer buys).

3. Direct marketing media most frequently used• Personalized and partly personalized mailings

far surpass the rest in the rankings of direct

marketing tools used.

• Telephone marketing forms an – albeit small

– complement to direct mail.

• The new media such as e-mail and the

Internet are on the rise.



5. Target group• Consumer attitude and behavior: critical,

price-conscious, conservative.

6. Made in Germany• German products have the reputation of

being high-quality, but not especially creative.

• German automobile makers and the

manufacturing industry can set store by

the attribute “Made in Germany”.

7. Forecasts• Marketing trends: growth rates are forecast

for direct marketing and online advertising;

classical advertising will remain stable or

decline slightly.

• Industries with opportunities: telecommuni-

cations.

8. Attitude toward the EU expansion• The Spanish are pleased to be in the EU, but

also worried about accession of the new

countries, above all due to fear of increasing

competition.

9. Intercultural aspects• The Spanish prefer an emotional tonality and

not a hard sell.

• Discounts are expected and used only as part

of customer loyalty programs, but not for

customer acquisition, because quality and

service are what count at the beginning of

the customer relationship.

• Data protection is a critical issue and one of

concern to Spanish consumers.

• The willingness to use mail ordering is low.

A large mail order company might now have

more success than when it entered the mar-

ket. Yet as long as shopping is regarded as an

experience in Mediterranean cultures, shop-

ping from a catalog will not achieve the

popularity it enjoys in Germany.

(Source: Survey of marketing experts from Spain)

Spain

175

The direct-marketing sector in the U.S. isthe biggest and most well developed inthe entire world. In the land of unlimited

opportunities, a quarter of all amounts spent

on advertising flows into direct marketing.

According to the Direct Marketing Association

(DMA), this trend will persist in the years to

come.

This is corroborated by the upward trendin the U.S. economy. Gross Domestic

Product (GDP), for instance, witnessed stron-

ger growth in 2003 than was expected. These

are favorable conditions for companies seeking

to set up shop in the U.S.

There’s one thing you absolutely need toknow. There’s no such thing as non-addressed

advertising forms. All direct mail must display

a clearly defined address. But to that end,

there’s also a first-rate supply of address lists

available.

Good luck!

Hello!

“Amerika, du hast es besser als unser Kontinent,

der alte” [“America, you’ve got it better than our

old continent”]. That is something Goethe wrote

two centuries ago. This quotation is still true

today, if you compare direct marketing in Europe

and the U.S.

U.S.A.

176

1. Facts + figures


Demographic data

The 50 States of the U.S.A.

Area 9.8 million square kilometers




Number of households connected to the Internet 55 million

Major cities/metropolitan areas (residents) New York (8,084,316), Los Angeles (3,798,981),Chicago (2,886,251), Houston (2,009,834),Philadelphia (1,492,231), Phoenix (1,371,960)

Canada

Mexico

1

2

3 4

6 7 8

95

10

11

49

5012

1314

1516

17Washington, D.C.

18192021

22

2324

2526

27

28

29

30

31

32 33 3435 36

373839

40

41

4243

44

45

46

47

48




Pacific Ocean

Atlantic Ocean

1 Washington2 Idaho3 Montana4 North Dakota5 Minnesota6 Wisconsin7 Michigan8 New York9 Vermont

10 New Hampshire

11 Maine12 Massachusetts13 Rhode Island14 Connecticut15 New Jersey16 Delaware17 Maryland18 Pennsylvania19 Ohio20 Indiana

21 Illinois22 Iowa23 South Dakota24 Wyoming25 Utah26 Nevada27 Oregon28 California29 Arizona30 Colorado

31 Nebraska32 Kansas33 Missouri34 Kentucky35 West Virginia36 Virginia37 North Carolina38 Tennessee39 South Carolina40 Georgia

41 Florida42 Alabama43 Mississippi44 Arkansas45 Louisiana46 Oklahoma47 Texas48 New Mexico49 Hawaii50 Alaska

U.S.A.

177

2. Economic data

Imports and exports





Gross National Product US $ 9,780.8 billion



Sales tax From 0 % – 7.25 % (depending on the state)


€ 630.7billion

€ 1,115.7billion


€ 39 billion



Stable growth course: The upswing in the economy received a clear boost in early 2004. The GDP growth fore-casts for 2004 range between 4.6 % and 4.7 %. A slowing in growth, to 3.3–3.4 %, is forecast for 2005. Identifiedpotential business risks include fear of terrorist attack and rising energy prices. Both factors could have palpableconsequences for investment activity and consumer behavior. Consumers are still anything but satisfied with thecurrent state of the economy. A fundamental reason identified for continuing low consumer confidence is the difficult situation on the job market, a situation likely to remain difficult over the medium term.Private consumption forecast: Consumption is expected to rise 3.9 % in 2004 and 3.3 % in 2005 over the pre-vious year.


U.S.A.

Trailblazer in direct marketing. Mailings are

widespread in the U.S. Despite the flood of adver-

tising, one in two Americans is interested in direct

mail and finds it essentially informative. To meet

with some response, however, the provider should

advertise a product offering of some relevance for

the recipient.

If the brand is also convincing in terms of price,

the provider stands a good chance of a long-term

customer relationship in which direct mailing

represents an efficient communication medium.

Open to all comers, the American market also

offers the potential for success to “Made in

Germany” products, but only for those that have

proven their performance.

178



40 % of Americans who receive mail advertising also read it. 16 % react to it, 10 % with a purchase. The conver-sion rate for mailings thus is slightly higher than the Western European average (7 %).


Read 40%

Responded 16 %

Purchase/visit 10 %

(Sou

rce:

GfK

/MRS

C,20

04)



U.S.A: Comparison: Western Europe

Basis: Received 85%

Read 36 %

Responded 12 %

Purchase/visit 7 %


To give you the best opportunity to assess the data, some of our tables offer the average values for the variousregions concerned for comparison purposes. The “Western Europe” group encompasses the following countries: Belgium, Germany, France, United Kingdom, the Netherlands, Austria and Switzerland.

U.S.A.

179

Response channels


More than half of those who reported having reacted to direct mail in the course of the past 12 months requested additional informational material. 47 % even reacted by placing a concrete order. Likewise, 47 % reached for the enclosed reply card.

Yes41%

No59%


(Sou

rce:

GfK

/MRS

C,20

04)


N: 164


N: 68

47%

24%

53%

18%

27%

47%

33%

5%

Sent reply card



Telephoned


Ordered product


Replied by fax



U.S.A.

180



American consumers are curious if the return address features the name of a well-known company, although for20 % it is clear that the provider should come from the addressee’s own country. In terms of design, what countsmost in a mailing is witty presentation (22 %).


There must be interest in the product advertised; if there is, then 81% of American consumers carefully study themailing – despite the flood of advertising. One American in two reports that direct mail is informative and arouseshis or her curiosity.

Witty presentation




Colorfuldesign

Premiumpaper

Beautifulstamp(s)



22%

15% 15%

32%

19%

11%

7%

20%

Positive Negative


29%

54% 50%66%

81%89%

(Sou

rce:

GfK

/MRS

C,20

04)



(Sou

rce:

GfK

/MRS

C,20

04)



Mailingsannoy me




U.S.A.

181



In a direct comparison, mail advertising (6 %) still has growth potential. Similar to most European countries, printadvertising is, at 22 %, the most popular advertising medium among American consumers. This is followed by TVwith 14 % and radio with 8 %.



6%

9%

22%

24%

14% 14%

8%

6% 6%

3%

(Sou

rce:

GfK

/MRS

C,20

04)

Basis US: All respondentsN: 516


US Comparison: Western Europe

U.S.A.


182


4. Consumer trends

Brand versus price: 79 % of Americans interviewed are loyal to a preferred brand. But the price has to be right – a fact true of an above-average 56 % of American respondents. Quality (47 %) plays an important role as well.As for “Made in Germany”, many American consumers still have no opinion on the matter and demonstrate aslight tendency to prefer national providers.















56% 29% 15%

34% 43% 23%

56% 31% 13%

70% 23% 7%

19% 51% 30%

39% 42% 19%

24% 48% 28%

17% 29% 54%

47% 38% 15%

79% 15% 6%

22% 40% 38%

40% 44% 16%

21% 47% 32%

21% 28% 51%

(Sou

rce:

GfK

/MRS

C,20

04)



U.S.A.

183



Nearly one in two U.S. respondents shops mail order several times a year. 17% even do so several times a month,a rate markedly higher than the Western European average. Specialty markets and discounters are popular withthe majority of American consumers too, and are visited frequently.


Internet and the telephone are neck-and-neck for the majority share in the ordering channels used most often inthe American mail order business. Still, a full one fifth of Americans place their orders by mail.

(Sou

rce:

GfK

/MRS

C,20

04)







17% 31%

12% 33%

74% 10%

92% 3%

24% 30%

47% 33%

70% 17%

52% 23%

69% 23%

44% 22%


Via order card

Via fax

Via e-mail/Internet

Via telephone

2%

43%

20%

41%

Yes48%

No52%


(Sou

rce:

GfK

/MRS

C,20

04)








U.S.A.

184


1. Marketing trends• Direct marketing is growing more aggressively

all the time as a result of the strong

competition for consumer attention.

• There is no clear separation made between

direct response TV and TV brand adver-

tising. Product placement is very much the

current trend, particularly in reality shows.

Cross-channel advertising is gaining in

popularity (e.g. TV advertising leads to the

online channel). Trend: chiefly emotional

appeals, story-telling, humorous.

• Evolution in marketing: the U.S.A. was the

trailblazer in direct marketing. Print adver-

tising is at pains to redirect attention to itself.

2. Direct marketing• Budget spread in 2003-2004: direct market-

ing budgets in 2004 are climbing by approx.

10 %, by approx. 10 % in classical advertising

and by approx. 20 % in online advertising.

• Amplifiers: couponing is widespread in the

U.S. and enjoys a high level of acceptance

among consumers. Other incentives are

frequently used as well.

3. Direct marketing media most frequently used• Partially personalized direct mail is the

instrument used most often in U.S. direct

marketing.

• Whereas direct response TV and direct

response radio are still in their infancy in

Europe and are rarely used, in the U.S. they

rank 2nd and 3rd on the list of direct-

marketing media.

• Surprisingly, telemarketing and cell phone

marketing (SMS text messaging) are bringing

up the rear, along with the Internet.


cost-conscious, image-oriented, funny, story-

telling, integrated.

• Test scenarios (tests of products, offerings,

creative campaigns, lists, etc.) are run

regularly in various dimensions. Market

research is always used for new products or

new campaigns.


conscious, conservative, but with a penchant

for innovation.

• Given the current economic situation, there

is a certain reticence to buy among American

consumers.

6. Made in Germany• German products from the automotive

industry and the manufacturing trades are

very popular in the U.S.

• Consumers associate “Made in Germany”

with precision, accuracy and solid engineer-

ing as well as excellence in detail work and in

planning. They view “Made in Germany” as

technologically strong but also as “cold” and

not “the first to come to mind” for products

calling for a personal, warm or casual touch.

7. Intercultural aspects• In marketing, one needs to pay attention to

ethnic differences, for instance, particularly

when selecting images for use in campaigns

designed to appeal to a broad audience.

• In 2003, national “do-not-call” registers were

introduced in which many are taking

advantage of the “opt-out” option.

• In a similar vein, many companies are using

“do-not-mail” lists based on provisions of

data-protection legislation.

• Strict anti-spam legislation is having

wide-reaching consequences for Internet

advertising.

(Source: Survey of marketing experts from the US)

U.S.A.

Editoral:

Editor:

Deutsche Post AG

c/o Deutsche Post Global Mail GmbH

Global Marketing

53250 Bonn

Standing: 09/2004

Mat.-Nr. 675-601-352

new markets. new opportunities. - dhl | global | …€¦ · 6 (source: fischer weltalmanach 2004,...

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