1. 1 May 8th 2007 Claude Verstraete, Belgian Post Solutions Herman Toch, Synovate Censydiam OPTIMISING YOUR MEDIA-MIX TO YOUR BRAND RELATIONSHIP

2. 2 TOPICS Introduction : the communication challenge The DM Brand Relationship model - Synovate Censydiam Brand relationships across categories Application to the Fashion sector Improving your brand relationship with DM

3. 3 THE COMMUNICATION CHALLENGE: RE-BUILDING BRANDS… Love Respect Discount /Commodity brands Fancy brands Lovemarks (mystery,intimacy,sensuality) Premium brands Source: “Loyalty beyond reason” - Kevin Roberts, CEO Saatchi & Saatchi

4. 4 Sources:Veronis Suhler Communications Industry Forecast, 7/03; TVB; Kagan; eMarketer; Jupiter E-mail 192019301940195019601970198019902000 Radio Television Cable PC GSM CD Internet VCR Satellite TV (DBS) Broadband Internet DVD PDAs DVR Entertainment robots (Sony Aibo) Electronic ‘e-ink' books Tablet PCs Emerging Digital cable Home wireless networks HDTV MP3 VOD 2010 Magazines Newspapers THE COMMUNICATION CHALLENGE: … IN A FRAGMENTED AND DIVERSIFIED MEDIA ENVIRONMENT

5. 5 Sources:Veronis Suhler Communications Industry Forecast, 7/03; TVB; Kagan; eMarketer; Jupiter E-mail 192019301940195019601970198019902000 Radio Television Cable PC GSM CD Internet VCR Satellite TV (DBS) Broadband Internet DVD PDAs DVR Entertainment robots (Sony Aibo) Electronic ‘e-ink' books Tablet PCs Emerging Digital cable Home wireless networks HDTV MP3 VOD 2010 Magazines Newspapers THE COMMUNICATION CHALLENGE: … IN A FRAGMENTED AND DIVERSIFIED MEDIA ENVIRONMENT

6. 6 THE COMMUNICATION CHALLENGE: … WHICH THE CONSUMER IS INCREASINGLY CONTROLLING

7. 7 THE COMMUNICATION CHALLENGE: … BY BEING INVITED BY CUSTOMER RATHER THAN INVADING HIM Traditional communication approach: “Invading” a rather passive customer with a maximum GRP’s & OTS Maximising GRP ‘s - OTS New communication approach : Being invited by the customer- in-control through a relevant media mix, message & tone of voice Optimising quality touchpoints

8. 8 THE COMMUNICATION CHALLENGE: … AND RE-BALANCING MEDIA MIX AND TONE OF VOICE Massive one-to-all Communication Differentiated one-to-one Communication Traditional communication approach: Breaking through the advertising clutter with a higher share of voice to reach a rather passive customer via massive “carpet bombing” New communication approach : Being invited by the customer-in-control through a relevant media mix, message & tone of voice by understanding my brand relationship

9. 9 Consumers are actively looking for ways to control, enrich and optimize their lives It is crucial for a brand to prove it’s relevancy by becoming part of the solutions of this active consumer But this consumer is in control. So your brand needs to be invited in his/her life When invited, your brand gets a psychological meaning and develops a unique relationship with this consumer THE COMMUNICATION CHALLENGE : HOW BUILDING A CUSTOMER RELEVANT RELATION ?

10. 10 TOPICS Introduction : the communication challenge The DM Brand Relationship model - Synovate Censydiam Brand relationships across categories Application to the Fashion sector Improving your brand relationship with DM

11. 11 DM BRAND RELATIONSHIP MODEL Model initiated by Belgian Post Solutions and developed with Synovate Censydiam A sound qualitative and quantitative analysis of consumer brand relationships and media expectations Allowing to adjust media-mix (ao Direct Mail ) and tone of voice in order to improve contact quality rather than contact quantity So that brand experience and loyalty is increased…

12. 12 So that they enjoy a better brand experience and become more loyal Understanding the brand relationship and communication expectations of your consumers in order to build a meaningful relation (via the right media-mix, message & tone of voice) DM BRAND RELATIONSHIP MODEL

13. 13 DM BRAND RELATIONSHIP MODEL : A NEW COMPLEMENTARY COMMUNICATION APPROACH BRAND MESSAGETONE-OF -VOICEMEDIA-MIX TARGET CUSTOMERS Traditional communication approach : How can I communicate my brand to my target customers ? Complementary communication approach : How can I adjust my communication ( message, media-mix, tone-of-voice) starting from my brand relationship with my customers ? BRAND RELATIONSHIP

14. 14 Add DM It installs personal contact 1 The brand knows I exist Choose your mix based on unique role of DM and media It meets the relation specific communication expectations Design your DM relevant with your relation(s) It increases involvement by using the right emotional meaning Emotional Proximity of DM 34 Understand the brand relation you want to build 2 CORE SCOPE RELATIONSHIP SURVEY The brand understands people like me The brand resonates with people like me Mass Media MEDIA RELEVANCY & MEDIA IMPACT brand Impact Your I see a lot of cluttered information Segmented DM lDB Marketing CRM It gives the right emotional meaning to the right type of people Qualify each individual into a Brand relationship Each individual is addressed with the right emotional meaning 1 person = 1 tailor made message It creates a mutual understanding through dialogue Segment your DM according to each type of brand relation 567 My brand reaches out to me My brand is my guest My brand understands me DM BRAND RELATIONSHIP MODEL: 7 STEPS FOR MORE IMPACT

15. 15 1345672 Improved brand experience & loyalty A A B B C C D D E E Understanding brand relationship Understanding information needs and expectations Matching media with key information needs & expectations Aligning DM with communication expectations DM BRAND RELATIONSHIP MODEL: THE ANALYTICAL STEPS

16. 16 TOPICS Introduction : the communication challenge The DM Brand Relationship model - Synovate Censydiam Brand relationships across categories Application to the Fashion sector Improving your brand relationship with DM

17. 17 DM BRAND RELATIONSHIP MODEL Multi-category qualitative survey (Synovate-Censydiam): 16 focus group discussions (4 hours each) for : ­ mapping brand relationships ­ understanding media-mix perception ­ Quota groups 8 groups of 4 individuals of which: ­ Youngsters aged 15 -18 : 2 with women / 2 with men (FR+Nl) ­ Young Adults aged 18 -24 : 2 with women / 2 with men (FR+Nl) Of which all are not yet settled 8 groups of 6 individuals of which: ­ Mature Consumers aged 30 -45 : 2 with women / 2 with men (FR+Nl) Of which half of respondents are professionally active and half are not active ­ Empty Nesters aged 50 –60 : 2 with women / 2 with men (FR+Nl) Of which all are socially very active

18. 18 Status : Brand offers recognition and the possibility to differentiate oneself Reliability - Trust : Brand is re-insuring and offers possibility to belong to the group Inspiration : Brand offers pleasure, is a source of inspiration and makes my life funnier ! Functionality : Brand offers practical help and makes my life easier ! Starting point : Each consumer seeks and experiences a specific relation with brands DM BRAND RELATIONSHIP MODEL : QUALITATIVE MULTI-CATEGORY ANALYSIS Source : Synovate Censydiam Individual axis Social axis

19. 19 The Ego relation Status : Brand as differentiator Trust : Brand as reliable label (being part of a large group) Inspiration: Brands as source of pleasure and inspiration Functionality: Brand as enabler (usefull – control) The unconditional relation Routine Loyal Trust A-brands The feel good relation Mainstream Open-minded lifestyle The expressive relation Emotion Unique Strong The dependable relation No-nonsense Price/quality Honest Sophisticated Trendy Exclusivity The status relation Visible Value Aspirational Individual axis Social axis 6 BRAND RELATIONSHIPS WERE IDENTIFIED THROUGH QUALITATIVE SURVEY Source : Synovate Censydiam

20. 20 TOPICS Introduction : the communication challenge The DM Brand Relationship model - Synovate Censydiam Brand relationships across categories Application to the Fashion sector Improving your brand relationship with DM

21. 21 APPLYING MODEL ON FASHION SURVEY: THE METHODOLOGY Quantitative study( Synovate-Censydiam) in the fashion sector (45’ face to face interviews): Mapping brand relationship types Understanding media perception and expectations of different media (with focus on DM) N= 308 people, nationally representative for age, gender, social class, region and language 9 banners were researched : C&A, E5-mode, H&M, JBC, Mexx, Zara, 3 Suisses, La Redoute and Neckermann. The “local boutique” was also added

22. 22 1345672 Improved brand experience & loyalty A A B B C C D D E E Understanding brand relationship Understanding information needs and expectations Matching media with key information needs & expectations Aligning DM with communication expectations DM BRAND RELATIONSHIP MODEL: THE ANALYTICAL STEPS

23. 23 FUNCTIONALITY STATUS RELIABILITY Creative Original Innovative Special Luxurious Superior Refined Choosy Unique Practical Straightforward Rational Solid Loyal Honest Mature Reliable Traditional Sociable Welcoming Open minded Young Hedonistic Humouristic A store that follows fashion and ensures that it is accessible for everybody A store that looks at clothes in a functional, no nonsense way A store that allows you to be out of the ordinary, to be just a little bit different than the others Buying clothes in this store makes it clear that you feel it is important what other people think of you A store where you do not just buy something, it is also about showing that you choose for quality A store that is all about traditional soundness and reliability A store that delivers clothes with its own, familiar and recognizable style, you know what you can expect A store where it is about more than just clothes, it is a way of life A store that is passionate about fashion and clothing and that is always looking for innovation A store where clothes are mainly about feeling good about yourself A store that makes life more fun and creates an uninhibited atmosphere A store that allows you to express your own personality A store that is not just for anybody; that gives you the feeling of being unique A store that makes life and shopping more simple A store that always helps you in making the right choices because of its interesting offer and by keeping you informed INSPIRATION Expressive Relationship Status Relationship Ego Relationship Functional Relationship Dependable Relationship Unconditional Relationship Feel good Relationship Inspiring Relationship QUANTITATIVE ANALYSIS ON FASHION RETAIL SECTOR REVEALED 8 BRAND RELATIONSHIPS Source : Synovate Censydiam

24. 24 FUNCTIONALITY STATUS RELIABILITY Creative Original Innovative Special Luxurious Superior Refined Choosy Unique Practical Straightforward Rational Solid Loyal Honest Mature Reliable Traditional Sociable Welcoming Open minded Young Hedonistic Humouristic A store that follows fashion and ensures that it is accessible for everybody A store that looks at clothes in a functional, no nonsense way A store that allows you to be out of the ordinary, to be just a little bit different than the others clear that you feel it is important what other people think of you A store where you do not just buy something, it is also about showing that you choose for quality A store that is all about traditional soundness and reliability A store that delivers clothes with its own, familiar and recognizable style, you know what you can expect A store where it is about more than just clothes, it is a way of life A store that is passionate about fashion and clothing and that is always looking for innovation A store where clothes are mainly about feeling good about yourself A store that makes life more fun and creates an uninhibited atmosphere A store that allows you to express your own personality A store that is not just for anybody; that gives you the feeling of being unique A store that makes life and shopping more simple A store that always helps you in making the right choices because of its interesting offer and by keeping you informed INSPIRATION Feel good Relationship Inspiring Relationship Consumers perceive player A in 3 relations Dependable Relationship PLAYER A DM BRAND RELATIONSHIP MODEL : Fashion sector Source : Synovate Censydiam

25. 25 FUNCTIONALITY STATUS RELIABILITY Creative Original Innovative Special Luxurious Superior Refined Choosy Unique Practical Straightforward Rational Solid Loyal Honest Mature Reliable Traditional Sociable Welcoming Open minded Young Hedonistic Humouristic A store that follows fashion and ensures that it is accessible for everybody A store that looks at clothes in a functional, no nonsense way A store that allows you to be out of the ordinary, to be just a little bit different than the others clear that you feel it is important what other people think of you A store where you do not just buy something, it is also about showing that you choose for quality A store that is all about traditional soundness and reliability A store that delivers clothes with its own, familiar and recognizable style, you know what you can expect A store where it is about more than just clothes, it is a way of life A store that is passionate about fashion and clothing and that is always looking for innovation A store where clothes are mainly about feeling good about yourself A store that makes life more fun and creates an uninhibited atmosphere A store that allows you to express your own personality A store that is not just for anybody; that gives you the feeling of being unique A store that makes life and shopping more simple A store that always helps you in making the right choices because of its interesting offer and by keeping you informed INSPIRATION Status Relationship Whereas consumers perceive player B in only 1 relation (Status) PLAYER B DM BRAND RELATIONSHIP MODEL : Fashion sector Source : Synovate Censydiam

26. 26 DM BRAND RELATIONSHIP MODEL : Fashion sector Player A fits with “Feel good” relationship Feel Good Relationship Inspiring Relationship Dependable Relationship Expressive Relationship Unconditional Relationship Ego Relationship Functional Relationship Status Relationship index Index > 120: This relationship is relatively more linked to this store Consumers perceive player A in 3 distinctive relations Source : Synovate Censydiam

27. 27 This relationship is rooted in the consumer need to add fun to his life. Shopping is about amusement and entertainment. The relationship that the consumer has with these stores is non-committal. Loyalty is more of a coincidence and lasts as long as the consumer is stimulated by this relationship. The atmosphere that these stores have is often more important than the quality of the product. These stores have a sociable, welcoming and young image. They stand for a hedonistic and humoristic view on shopping. FUNCTIONALITY STATUS RELIABILITY INSPIRATION Description of ‘feel good’ relation: Player A is about having fun in a welcoming atmosphere DM BRAND RELATIONSHIP MODEL : Fashion sector Source : Synovate Censydiam

28. 28 Player A needs to give inspiration to its clients by providing them with a very wide range of ideas, clothes, accessories, etc. Fashion needs to be democratized: bring fashion of the catwalk and make it available for everybody (at a reasonable price). To constantly be this source of inspiration for its clients, Player A needs to stay innovative, creative and original at all times. This relationship is not a stable one. Stores need to keep attracting attention by offering original and new things. FUNCTIONALITY STATUS RELIABILITY INSPIRATION Description of ‘inspiring’ relation: Player A allows people to be up to date with the latest trends DM BRAND RELATIONSHIP MODEL : Fashion sector Source : Synovate Censydiam

29. 29 This relationship is about having the certainty that one can rely on the store. No surprises have to be offered. Clients expect a stable offer, not giving in to the smallest fashion whims. Clients expect traditional soundness and reliability with a good value for money. The clothing store within this relationship is straightforward, mature, solid, honest and reliable. Store loyalty is high within this relationship but only if one has the feeling that the store delivers stability. FUNCTIONALITY STATUS RELIABILITY INSPIRATION Description of ‘dependable’ relation: Player A has its own recognizable style: you know what to expect DM BRAND RELATIONSHIP MODEL : Fashion sector Source : Synovate Censydiam

30. 30 1345672 DM BRAND RELATIONSHIP MODEL Improved brand experience & loyalty A A B B C C D D E E Understanding brand relationship Understanding information needs and expectations Matching media with key information needs & expectations Aligning DM with communication expectations

31. 31 UNDERSTAND THE COMMUNICATION EXPECTATIONS IN FEEL GOOD RELATION (FASHION) Index > 115: feature is more relevant Index < 115: feature is less relevant Communication expectations of Feel Good Relationship (index) Source : Synovate Censydiam

32. 32 UNDERSTAND THE COMMUNICATION EXPECTATIONS IN INSPIRING RELATION (FASHION) Index > 115: feature is more relevant Index < 115: feature is less relevant Source : Synovate Censydiam Communication expectations of Inspiring Relationship (index)

33. 33 UNDERSTAND THE COMMUNICATION EXPECTATIONS IN DEPENDABLE RELATION (FASHION) Index > 115: feature is more relevant Index < 115: feature is less relevant Source : Synovate Censydiam Communication expectations of Dependable Relationship (index)

34. 34 1345672 Improved brand experience & loyalty A A B B C C D D E E Understanding brand relationship Understanding information needs and expectations Matching media with key information needs & expectations Aligning DM with communication expectations DM BRAND RELATIONSHIP MODEL

35. 35 “Brands communicate trhough media and advertising. Can you tell me which media gives you the following feeling (multiple choice allowed)” Index based on total average score Match right media with the key expectations: Feel good UNDERSTAND UNIQUE ROLE OF DM AND OTHER MEDIA IN YOUR MIX Source : Synovate Censydiam

36. 36 Match right media with the key expectations: Inspiring relation “Brands communicate trhough media and advertising. Can you tell me which media gives you the following feeling (multiple choice allowed)” Index based on total average score UNDERSTAND UNIQUE ROLE OF DM AND OTHER MEDIA IN YOUR MIX

37. 37 “Brands communicate trhough media and advertising. Can you tell me which media gives you the following feeling (multiple choice allowed)” Index based on total average score Match right media with the key expectations: Dependable UNDERSTAND UNIQUE ROLE OF DM AND OTHER MEDIA IN YOUR MIX Source : Synovate Censydiam

38. 38 1345672 DM BRAND RELATIONSHIP MODEL Improved brand experience & loyalty A A B B C C D D E E Understanding brand relationship Understanding information needs and expectations Matching media with key information needs & expectations Aligning DM with communication expectations

39. 39 FUNCTIONALITY STATUS RELIABILITY INSPIRATION The Ideal Direct Mail for all relationships for all target groups DESIGN THE IDEAL DM WITH THE RIGHT EMOTIONAL MEANING

40. 40 DM is able to increase brand loyalty because of its rewarding qualities. It is able to make the customer feel acknowledged, unique. DM can be a source of inspiration where information on latest trends can help to make the right choices. DM needs to be visual attractive and should be about more than clothes only. It should also be about lifestyle. DM must ensure the feeling that I am really connected to the store. Tone of voice :  Be self-assured but friendly and inviting  Can be a personal way of addressing the consumer  Use a language so that one feels close to the store  Not too much text. Visual elements are important  Be stimulating and catching  Less technical details, more emotional values  Talk about the latest trends in an informative but playful way  Include an element of trust or consistency Humor Intelligent Active Self-assured Happy Source : Synovate Censydiam DESIGN THE IDEAL DM WITH THE RIGHT EMOTIONAL MEANING

41. 41 Lay out  Use optimistic, natural, happy colors  Use a lot of pictures.  Be a guide and inspiration for latest trends.  Logo or signature of the brand should be visible Content  Focus on togetherness.  Enhance the feeling of a lifestyle  Use other non-clothing brands  Allow for dialogue with the brand. Format  Be original and different  A folder or a catalogue portray a way of life.  A catalogue can serve as a source of inspiration, a reference guide.  A catalogue as permanent way to enter the home Latest trends, more than only clothing Expressing a lifestyle Source : Synovate Censydiam DESIGN THE IDEAL DM WITH THE RIGHT EMOTIONAL MEANING

42. 42 The Ideal Direct Mail for selected target groups FUNCTIONALITY STATUS RELIABILITY INSPIRATION CREATE THE RIGHT EMOTIONAL MEANING FOR SELECTED TARGET GROUPS

43. 43 Friendly, inviting tone of voice Be familiar, team up with the consumer. Be a friend. Be informal and convivial Pictures of fashion “experts” can be a form of inspiration. Look for experts that relate to the world of 35 plus, that are aspirational Be sunny and cheerful: play with colors and use of photos Do not only focus on clothing. Go more broad on content (culture, leisure…) The life style should reflect their possible life stages Logo or signature of the brand should be visible A folder or catalogue can be used to give as much as possible (visual) information on latest trends. At can serve as a manual of inspiration or a reference book. FUNCTIONALITY STATUS RELIABILITY INSPIRATION Inspiring Feel Good Young Women Happy, feeling good Lifestyle Welcoming, convivial  Create a welcoming atmosphere IDEAL DIRECT MAIL FOR PLAYER A FOR YOUNG WOMEN…

44. 44 Add DM It installs personal contact 1 Choose your mix based on unique role of DM and media It meets the relation specific communication expectations Design your DM relevant with your relation(s) It increases involvement by using the right emotional meaning Emotional Proximity of DM 34 Understand the brand relation you want to build 2 CORE SCOPE RELATIONSHIP SURVEY Mass Media MEDIA RELEVANCY & MEDIA IMPACT brand Impact Your Segmented DM lDB Marketing CRM It gives the right emotional meaning to the right type of people Qualify each individual into a Brand relationship Each individual is addressed with the right emotional meaning 1 person = 1 tailor made message It creates a mutual understanding through dialogue Segment your DM according to each type of brand relation 567 DM BRAND RELATIONSHIP MODEL: 7 STEPS FOR MORE IMPACT

45. 45 NAL - data Socio-Demo data Transaction data Lifestyle data Category / Brand relationship data Cost-complexity Relevancy CREATE THE RIGHT EMOTIONAL MEANING FOR SELECTED TARGET GROUPS : NEED TO ENRICH YOUR DATA

46. 46 Level of relevancy Cost & Complexity Finding those people in database Segmentation based on own data (NAL, socio-demo, lifestyle etc ) 5 6 Ad-hoc survey on your brand integrating lifestyle or purchase behaviour attributes Questionnaire to your customers / prospects to qualify them within a specific relation 5 CREATE THE RIGHT EMOTIONAL MEANING FOR SELECTED TARGET GROUPS : NEED TO ENRICH YOUR DATA

47. 47 TOPICS Introduction : the communication challenge The DM Brand Relationship model - Synovate Censydiam Brand relationships across categories Application to the Fashion sector Improving your brand relationship with DM

48. 48 DM BRAND RELATIONSHIP MODEL In the ever growing advertising clutter, the communication challenge is no longer a GRP or share of voice battle but a customer relevancy battle. It is therefore key for the brands to understand their meaning to their customers, to become relevant and to engage a unique personalised relationship with them. Direct Marketing is a 360° communication tool improving most brand relationships

49. 49 THE KEY TERRITORY OF DM Direct Marketing is an efficient way to increase this brand relevancy because it addresses consumers as an individual and INVOLVES them as no other media DMAvg other media. … rewarding me as a customer73%19% … being connected to the brand63%8% … acknoweldgement / appreciation57%8% … being important for that brand57%7% … being unique51%7% This media can give me the feeling of ….. Source : Synovate Censydiam

50. 50 DM DISCOVERY 4 : DM BRAND RELATIONSHIP MODEL Belgian Post Solutions helps you reaching the unique person behind each letterbox

51. 51 BACK-UP

52. 52

53. 53 Feel good: matching the right media with the key expectations Understand unique role of DM and other media in your mix

54. 54 Inspiring relation: Match the right media with the key expectations Understand unique role of DM and other media in your mix

55. 55 Dependable relation: Match the right media with the key expectations Understand unique role of DM and other media in your mix