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					Direct Marketing Practices
in the Philippines

Elenita D.L. San Diego
Asian Pacific Postal College
Bangkok, Thailand

1. Highlights about the Philippine Postal

2. DM Infrastructure in the Philippines

3. Philpost as a DM channel- Focus on its
 Government owned and controlled corporation
  (GOCC), wholly owned by the government.

 Created under Republic Act (R.A) 7354 on
  April 3, 1992, transforming the 94-year old
  Bureau of Posts into a corporation.

 Nationwide – 2,383 post offices

 Manpower – 13,284 personnel

 Vehicles – 673

 One (1) Central Mail Exchange Center
 13 Regional Mail Centers
Corporate Thrusts and Directions:
 Strengthen Core Competence-

 Provide QUALITY SERVICE that is competitive
  and customer- oriented

 Improve revenue-generating products and
services and develop new products

 Attain corporate financial viability
 Keep pace with ICT developments and
 application of E-commerce opportunities

 Strengthen international relations with postal
 administrations, unions, and other international
 organizations related to postal services

 Undertake strategic alliance to enhance

1. Highlights about the Philippine Postal

 2. DM Infrastructure in the Philippines

3. Philpost as a DM channel- Focus on its
Direct Marketing Infrastructures in the Philippines:

       1. Postal System

       2. Alternative Delivery System

       3. Media Options

       4. DM Clients
Postal System- R.A. 7354 transforms Postal
Services Office into a government corporation
with the eventual goal of full privatization.

Direct marketers in the Philippines make use of
the postal system mostly for direct mailing in
Metro Manila. Ordinary mail is pegged at Php7.00
for the first 20 grams. Corporate bulk mailers are
given volume discounts and Postage Charge
Account schemes.
 Alternative Delivery System –

  Licensed private couriers totals to about 214 firms
operating mostly in Metro Manila and key cities
nationwide. Delivery charge starts approximately
at Php20. to 50.00 per 20 gram package within M.M.

  Some direct marketers ingeniously tap office building
security guards, newspaper delivery boys, tricycle drivers
and even receptionists to distribute mailers within
commercial buildings and subdivisions.
 Media Options – the Philippines abounds with
 various media available for direct mail applications
- Print:
  more than 20 weekly magazines
  more than 15 monthly magazines
  International publications with regional or Phil.
  editions such as Time, Newsweek, Reader’sDigest,
  Fortune, etc. have limited circulation because
 of price; readership is concentrated in the A B and
 upper C markets.
- Broadcast:
   Radio – there are about 600 radio stations
    in the whole archipelago, 90% of which are
    commercial stations. 85% of total households
    owning radio sets. It is far-reaching and cost-
    efficient medium but very few direct marketing
    efforts are aired through the radio.

   FM Radio accounts for 45% of all radio stations, is
   segmented according to formats used, like Romance,
   Middle of the road,Cross over, New Wave,Rock--- a
   good avenue for direct marketing messages.
Television- there are 6 VHF and 5 UHF channels.
 TV is the most popular entertainment and
  information medium.
 Very few direct response-oriented advertising
 is aired on TV. There is clutter (20 minutes of
 advertising per hour)-high ratings means high
 concentration of viewers on the program and
 not on advertising. Airtime costs is phohibitive.

More than 50 cable and satellite channels reaching about
a million households, mostly in Metro Manila. Cable
viewing is highest during 10pm to 12 midnight. This
profile offers excellent opportunity for niche marketing
as direct marketing. But still TV shopping is not that
popular yet.
 DM Clients
  Volume users of DM in the Philippines are
international publications, financial services
companies, specifically insurance and credit
card companies. Focus is on niche marketing
and ownership of a database.

Insurance companies sell service packages
 through DM which formerly done through sales
Credit card companies allow for continuous
 contact with cardholders thru billing mechanisms.
Any change of address is reported and updated.
There is also access to individual’s charging
expenses- provides data for credit limits, expenditure
 habits and purchase preferences.
Hospitality industry:
Hotels maintain a database of their guests and use this
for sales promotions or a loyalty program. Airlines also
maintain a database for their frequent flyer program.

Packaged goods:
Use direct marketing for introducing /sampling new
products and for consumer clubs or loyalty programs

Use DM as door-openers to doctors for their medical
representatives. As a tool to encourage trial, brand
loyalty and multi-brand purchases for over-the-counter

1. Highlights about the Philippine Postal

2. DM Infrastructure in the Philippines

 3. Philpost as a DM channel- Focus on its
 Approximately 30% of Philpost revenue
 are derived from Direct Mail marketing.
 Almost all the top 100 corporate customers
 of Philpost are practitioners of DM.

 Sectors such as Financial institutions, credit
 card companies, insurance firms, consumer
 goods, pharmaceutical companies are
 PHILPOST customers.
Nestle Philippines uses DM in their loyalty program
 - > Php 10 million revenue is derived per year

Del Monte Philippines has a loyalty program
 dubbed, “Kitchenomics Club” since early 1990s

UNICEF heavily relies on DM campaign to get
 sponsors and donors; Philpost gets about Php 7
 to Php 8 million annually in revenue

Sony Philippines now utilizes DM to promote and
 advertise its products/services
Pharmaceutical companies such as Glaxo
 Smith Kline, Pfizer, Abbott Laboratories,
 Merck Sharp and Dohme(MSD) are now
 DM practitioners and customers of Philpost

Insurance companies such as Sunlife(Canada)
 Financial, Paramount Life and General, Philam
 Life/Plans, Manulife, Malayan Insurance, etc.

Financial (credit card companies) such as Bank
 of the Philippine Island card, Equitable Bank, AIG,
 Citibank, Standard Chartered, American Express,
 etc. are among the top customers of Philpost
GSIS (Government Service Insurance System)
 will have an information drive to its more than
 1.5 million members within the year utilizing the
 services of Philpost

 Philpost also maintains its relationship with
 other partners in the industry such as
 -advertising agencies
 -mailing list providers
Philpost is also a member of the

Direct Marketing Association of the Philippines
(DMAP) but not as active as before
TNT and Direct Link play an active role now with
Other success factors:

-- Account Officers act as Consultants

-- Institutionalized the Lecture on Direct Mail
 Marketing among heavy and would-be users
Opportunities for Direct Mail Marketing:

A Senate bill which will be passed soon which
 prohibits tobacco companies to advertise in
 ATL(above-the-line) medium such as TV, bill-
 boards, posters, etc. This will indeed be an
 opportunity for Philpost.

 Exchange deal with DM practitioners for
 One-liner advertisement on each mail piece.
Your Partner in
   Learn about Direct Mail
   Know how it can help your business
   How to make direct mail work for you
                            is a
  valuable, cost effective way to
   tell your customers who you
    are, and what your business
Get to know Direct mail,
and let your customers
get to know you.
    What Direct Mail
     can do for your
          business: chance to learn
    Offer customers a
    about your business
• Promote interest in a new product or
• Generate sales and orders
• Drive traffic to your store and
• Cultivate long-term relationships
    What is Direct
   It is a form of direct marketing that
uses person-to-person communication
sent through the mail. It is opened,
read, and acted upon if it is addressed
to the right person, who is offered the
right combination of offer, and is
presented the proposition interestingly.
Benefits of Direct
• Targeted    • Creative
• Personal    • Measurable
• Flexible    • Cost Effective
• Tangible    • Confidential
• Measurable • Invites
   Two ways of
communicating with
  your customers:• Costly
 THE SHOTGUN           • Limited information
General Advertising
                       • Advertisement
                       clutter and other
                      HIT No response devise
  RADIO                   Why pay big money to
                      talk to people who live too
NEWSPAPERS            far away from your business
                      or don’t care about your
                      product or service?
   Two ways of
communicating with
  your customers:
                    Roll out with the right
                  message, to the right people
   THE SNIPER’S        at the right time!
    Direct Mail    Your message is targeted,
                  personal and accountable --
                    you will know whether it
 Talk to your      worked or not because you
                    can count the responses.
  audience        Whether you know the name
 one-to-one       of your prospect or not, you
                      can still get personal.
 So you see...
 The effectiveness of DIRECT
            MAIL is
The effectiveness of Television
More Reasons why
 you should use
   Direct Mail
• Mail is personal and unobtrusive

• It gets people to take action

• Many people are not yet acquainted
 with electronic mails

• It makes a powerful first impression
  Companies that use
     Direct Mail

• Manfre Asian Life • Insular Life

• PCIB-Cigna         • Paramount

• INC. Life Insurance • Ayala Life

• CMG Life           • Aegon
 Companies that use
    Direct Mail

• Reader’s Digest   • Time Magazine
• Fortune           • Asiaweek
                    • Newsweek
  Companies that use
      Direct Mail

• British Airways    INDUSTRY
• Cathay Pacific    • Edsa Shangri-La
• Singapore         • Intercontinental
 Airlines            Hotel
• KLM Royal Dutch • Hyatt
• Northwest       • Mandarin
  Companies that use
         Direct Mail
• Del Monte           • Ayala Discount

 Kitchenomics           Cards
• Jollibee’s Kiddie Club Nestle’s (Wellness)
• Selecta Moo Club       Club

• Alpo                • L’Oreal’s Consumer
The Classic Mail
  • The Outer Envelope

  • The Letter

  • The Brochure

  • The Response Device

  • The Business Reply Envelope
 Effective Direct
  vs. The “Junk

• The List

• The Offer

• The Media / Creative
  How to make
Direct Mail Work
    for You
• Be generous (The Law of

• Take advantage of referrals

• Timing is everything

• Persistence pays off
  How to make
Direct Mail Work
    for You
• Break through the clutter and grab
 their attention

• Follow up with telemarketing

• Get the best leads for direct mail

• Appeal to your audience’s emotions
Q and A……

  Thanks for your attention.

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