The UK Direct Mail Catalogue Market What lessons can we learn? Ray Morris-Hill Associates.

Slides:

Advertisements

Similar presentations

Place (Distribution).

Advertisements

Introduction to Marketing

Section 26.2 Setting Prices

Single-Player Multi-Player Click your left mouse button to progress through the demo.

Chapter 13 Internet Retailing “A salesman is got to dream, boy. It comes with the territory.” ~Arthur Miller.

Section 21.2 Distribution Planning

Merchandise Assortment. Decisions, Decisions □Good planning is critical □Target market analysis □Merchandise decisions □Pricing decisions.

Understand Merchandise Planning in Retailing. The Merchandise Plan A budgeting tool that helps retailer or buyer to meet department goals ▫Planned sales.

Deciding on a Distribution Channel. Lesson Goals: Learn different methods of distribution Recognize continuous nature of marketing methods Obtain information.

Chapter 22 Pricing, Costing, and Growth

The Merchandising Business

Chapter 30 – Pricing Strategies

Key Concepts Understand the key issues related to credit management

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 6 Internal Control and Financial Reporting for Cash.

Advantages of TV Advertising Creativity and impact Coverage and cost effectiveness (but what about target market reach and waste coverage) Captivity and.

Internal  Financial  Human Resources  Marketing  Purchasing  Sales  Operations  Administration  Customer Service External  Government  Trade.

Lesson 7.6: Markup and Discount

Marketing Vocabulary. Market Advertise or promote an item or service.

Business Simulation Seminar Planning Forecasting Demand and Capacity.

©2005 Pearson Education Canada Inc.6-1 Chapter 6 Direct Response Communications.

Section 23.1 The Role of the Buyer

1. Radio Advertising is Good when  You need to reach local markets  You have enough budget to advertise on several stations  You have a simple.

Module 4: The Buying Process. Lesson 1 Determine the needs and wants of retailers.

Business Simulation Seminar Business Plans. What is a Business Plan?  A structured document describing the goals, plans, and expected outcomes for the.

Create a new revenue stream Fastway Couriers are excited to offer Parcel Connect, a new delivery service where consumers can send and collect parcels.

Marketing and Distribution

CHAPTER 13 PRODUCT MANAGEMENT IN NON-STORE RETIALING.

INVENTORY (STOCK). WHY IS STOCK SO IMPORTANT? t It is the lifeblood of a trading business. t It is what a business buys to sell to make a profit. t It.

1 Chapter 6 Direct Response Communications. 2 Direct Response Advertising Direct response advertising can be a component of a direct marketing campaign.

Development of Local Suppliers for International Businesses Peter Bracher – Managing Director NSF-CMi Asia Pacific February 2011 Overcoming the Challenges.

Multichannel Retailing

Make Your Mark 2 w/c 14 th November Gratefully supported by: © Sheffield City Council 2010 Welcome to Global Entrepreneurship Week Each year, over.

The Marketing Process, Planning & The Marketing Plan.

Introduction to Marketing

CS37420 CS37420 Business Models 1. 2  A set of planned activities designed to result in a profit  In the market place  Key Factors  value proposition.

Marketing. Marketing Activities Buying – Obtaining a product to be resold; involves finding suppliers that can provide the right products in the right.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Credit and Inventory Management Chapter Twenty Prepared by Anne Inglis, Ryerson University.

Strategy is a plan, a “how,” a means of getting from here to there. Strategy is perspective, that is, vision and direction. What is a Strategy.

Sales & Marketing Session 2 Kay Geronikos (Business & Finance Faculty) Business Studies Teacher.

Product Planning.  Product Planning  Decisions about the features and services of the product  Ideas that will help sell the product  Packaging /

Pricing Strategies Chapter 26.1

Section 26.1 Pricing Concepts

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 11-1.

Marketing Is All Around Us Chapter 1.1. The Reality…  You have been marketed to since you were very young.  You probably know a lot about marketing.

MGT-519 STRATEGIC MARKETING AAMER SIDDIQI 1. LECTURE 22 2.

Shortages and Surpluses. Businesses have to figure out what price to charge consumers Also, they have to try to figure out how much of their product the.

By the age of 20, the average American has seen some one million commercial messages. Advertising accounts for 2/3 of the space in newspapers, and 40.

Price.  Price is what is charged by the supplier to the consumer  Can be a deciding factor in a consumer choosing your product over you consumers 

Blue Ocean Strategy How to create uncontested market space and make the competition irrelevant Chapter#2: Analytical Tools and Frameworks Kelompok-6 Aditya.

Feb. 18, 2002ISOC IL - 6th Annual Conference 1 Top Internet Advertisers who are they and what can be learnt from them? ROI Driven Online Advertising Presentation.

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 3.

Marketing Basics 10-1 Presentation By, Alexxus Footman, Dominique Helms, and Elzir Stroman.

Product Life Cycle Marketing I.

Value Proposition 999surprizes.com Huali.qiu. Porter’s generic strategy  999.surprises.com offers they unique set of presents and ‘surprise’ element.

Financial Management Glencoe Entrepreneurship: Building a Business Analyzing Your Finances Managing Your Finances 21.1 Section 21.2 Section 21.

Leading the Way Merchandising 101. Our Mission ZAG is a collection of merchandise buyers for zoos, aquariums and other wildlife-related institutions and.

CO6001 Managing a Computer Based Environment Marketing and Sales.

CHAPTER 5: PRODUCT AND PRICE DECISIONS-SPORTS. I. PRODUCT DEFINED A PRODUCT CAN BE TANGIBLE (BASEBALL BAT-GOOD) OR INTANGIBLE (WATCHING A SPORTING EVENT-SERVICE)

Unit 3 – Decision making to improve marketing performance 3.4 – Using the marketing mix: People, process and physical evidence AQA A-level Business © Hodder.

© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 4 THE BASICS OF MARKETING 4-1Changes in Today’s Marketing 4-2Planning a Marketing Strategy 4-3Deciphering.

Important Marketing Concepts. 1. Segmentation A market segment is a sub group of a whole market in which consumers have similar characteristics. Identifying.

BUSS2 Marketing: using the marketing mix - promotion.

Unit 10 Product and Service Management Chapter 30Product Planning Chapter 31Branding, Packaging, and Labeling Chapter 32Extended Product Features.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 13: Retailers, Wholesalers, and Their.

Strategic Analysis and Competitive Advantage

Place (Distribution).

Direct Mail Catalogues

RAP Communications plc

Slides for Text Selections

RAP Communications plc

Presentation transcript:

The UK Direct Mail Catalogue Market What lessons can we learn? Ray Morris-Hill Associates

Introduction l Direct Mail is the fastest growing segment of the UK catalogue market l In the Middle to Upmarket sectors the market is developing similarly to the USA l Close study of this development over the last 10 years produces key lessons for any Direct Mail catalogue

Ray Morris-Hill Associates Key Lessons l Merchandise l Inventory Management l Creative Presentation l Circulation and Customer Recruitment l Fulfilment l Financial

Ray Morris-Hill Associates The UK Home Shopping Market Total Retail £167,551 41, % Home Shopping £7,551 1, % of which: Agency Mail Order £4, % Direct Mail £1, % Other Home Shopping £1, % 1996 Data Source: Verdict Research Sales £ million Sales Pta ‘000 million Growth % vs LY

Ray Morris-Hill Associates Home Shopping Share of Total Retail Home Shopping Sales Share of Retail £ million Pta 000 million (% vs LY) Clothing£3, (+6.3%) 12.8% Home£2, (+7.3%) 6.2% Other£1, (-6.5%) 1.7% Total£7, (+3.4%) 4.5% 1996 Data Source: Verdict Research

Ray Morris-Hill Associates Company Characteristics l 5 Big Companies dominate l Big Books l Agent Commission l Middle to Lower Market l “Free” Credit Offer l Thousands of small young, companies l Smaller Catalogues l No Commissions l More Upmarket l Cash with Order or Charge for Credit AgencyDirect Mail

Ray Morris-Hill Associates Merchandise l Determine the target customer and select merchandise to meet this customer’s requirements l Why would they buy this item, by mail order, from you? l Items not Ranges l Limited Merchandise offers lack credibility l Repeat winners

Ray Morris-Hill Associates Inventory Management l Forecast stock to determine: - Re-orders of fast selling lines - Clearance of surplus merchandise l Back orders are necessary, but monitor, control and inform the customer l Price aggressively to clear slow moving lines l Use almost every opportunity to clear old stock l Do not get emotionally attached to stock!

Ray Morris-Hill Associates Creative Presentation l Item must be shown well enough for the customer to determine if they want to buy it l Personality marks you out from the rest l Image may enhance personality but it is the product that sells l Repeat winners l Paper weight and quality l Do not give too much space to low price items

Ray Morris-Hill Associates Circulation and Recruitment l Key code every segment of your mailing l Use RFM to segment your customer list l R your buyers l Use Mail Order Buyer lists l Repeat winners l Try all methods of recruitment - Lists, Ads, PR, Retail names, Friends …

Ray Morris-Hill Associates Fulfilment l Decide on your Customer Service Policy and communicate to all staff l Make the Policy consistent with Personality l Use a tried and tested computer system l Keep your staff informed l Plan ahead for growth

Ray Morris-Hill Associates Financial l Make a Plan l Start with enough Cash l Tight Cost control l Accurate, Timely and Relevant Reports are essential l Evaluate Profit or Loss of each activity * See also “Top Ten Tips for More Successful Catalogues” - Catalogue & Mail Order Business May/June 1998

Ray Morris-Hill Associates Summary l Learn from everything you do l Repeat winners, drop losers l Plan activity l Tight financial control is essential to survival and success l An integrated business