International Day Presentation - Regency Direct Marketing (I) Pvt. Ltd

India: Is it really a gold mine?
Presented by:
Dharti Desai
Sanj Aggarwal
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© 2006 Regency Direct Mail Ltd.
When you hear ‘India’, what do you think of?
The Taj Mahal?
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The Gatway to India perhaps?
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Snake Charmers?
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Slums?
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Extreme poverty?
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Traffic jams caused by lifestock?
But is this really India?
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Can you guess where this picture was taken?
Marine Drive, Mumbai, India
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Is this a NASA control room?
No, it’s Reliance Infocomm,
a cellular provider based in
Navi Mumbai, India.
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Many other examples of modern India exist…
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Packed Shopping Malls
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Multi-Level Department Stores
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India’s answer to Starbucks
are coffee shops like Barista…
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…and Café Coffee Day
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India hasn’t even
spared reality
TV with shows like
‘Indian Idol’…
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…and ‘Who Wants to Be a Millionaire’.
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And who could forget ‘Bollywod’…India’s film industry is the
largest in the world with movies regularly filmed overseas.
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India: Is it really a gold mine?
Presented by:
Dharti Desai
Sanj Aggarwal
(Click to Continue)
www.rdmipl.com
© 2006 Regency Direct Mail Ltd.
Agenda
• Current Economic Scenario
• Imports to India
• What does this mean to Int’l direct marketers?
• Entering the Indian Market – Crash Course
• Case Studies
*market intro available at www.rdmipl.com and a complete
guidebook to the Indian market available through the DMA
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© 2006 Regency Direct Mail Ltd.
Current Economic Scenario
•India has the fourth largest economy in the world as measured by
purchasing power parity, (and is the second fastest in growth)
•GDP is growing at a rate of 8%,(in some sectors it is as high as 14%)
•India has earmarked more than US$117 billion to improving
infrastructure, (hydro, transportation, roadways, telecommunications,
etc.)
•India has opened up majority ownership to foreign companies, (can
now own up to 51%, up from 49%)
•Mobile phone sector has risen 18% in the last 18 months, (more
mobile phone users than land lines)
•Credit card penetration is close to 19 million
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Imports into India
•Contrary to popular belief, India does import:
-crude oil
-machinery
-gems
-fertilizer
-chemicals
-electronic goods
-nonperishable consumables
-Sanj Aggarwal
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© 2006 Regency Direct Mail Ltd.
What does that mean?
•India has the potential to have the largest economy in the
world.
•Indians are very accepting of foreign goods.
•Indians have the means and ability to purchase goods.
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Entering the Indian Market
Why chose India:
-no translation required as English is the most widely spoken
language in India
-payment processing and Rupee conversion has been
simplified even though it is not a free floating currency, (fully
convertible)
-both business and consumer lists are now readily available
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Entering the Indian Market
You’ve decided to test the Indian market, two options:
1) test from offshore
-use your existing facilities and deliver via remailer
-responses go offshore
2) test from within India
-use local facilities to perform data and print work
-deliver mail via network of couriers and Indian post
-responses go to return address within India
*or use any combination of the above
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Entering the Indian Market (cont)
Adapt your offer:
-Indians don’t receive many DM pieces so K.I.S.S.
-no translation required
-payment section changes maybe required
List Selection:
-list market is growing but immature compared to the USA
-list costs range from $5.00/M to $300/M
-as an alternative to renting a list, keep options for lead
generation via alternative media open
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Entering the Indian Market (cont)
Lead Generation via Alternative Media:
•Space Advertising – relatively expensive but quite effective, (full
page newspaper can cost as much as US$20,000 – no concept of
remnant space)
•Bank Card Syndication – guaranteed to reach active credit card
holders who have the means to pay you, ($65/M)
•Newspaper Inserts – new concept and very responsive, extensive
reach, target via publication type and language, ($35/M)
•Door Drops via India Post – new service from India Post launched in
2005, reach virtually every household in India, ($25/M)
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Entering the Indian Market (cont)
Data Cleaning and Merge Purge:
•Only standardize during your merge purge process if you are
confident that key address elements will not be altered as Indian
addresses are quite complicated; example:
Sanj Aggarwal
12, Matruchaya, K. Hatiskar Marg, (Flat No., Building Name, Street Name)
Above Regency Direct Marketing, near Tata Press, (Land Marks)
Old Prabhadevi, Mumbai 400025, (Suburb, City, PIN Code)
•Some systems maybe confused with extensive use of commas (,)
and landmarks (near, beside, behind).
•Joint families are common, perform individual merge purges.
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Entering the Indian Market (cont)
Mail Delivery:
•India Post rates are based on 20 gram slabs, (Rs. 7/US$0.15 for 1st class)
•Discounts available for reading material, (called Book Post; cannot be
personalized or sealed)
•Can use local couriers as an alternative to India Post in major metros, (usually
more economical than India Post)
Package Delivery:
•Package delivery via national courier service such as Blue Dart is
recommended, (guaranteed with proof of delivery)
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© 2006 Regency Direct Mail Ltd.
Entering the Indian Market (cont)
Response Handling:
•If your offer has an International look and feel, sending responses
overseas is acceptable however responses to local addresses are
usually higher
•Responses kept within the country can be directed to:
-1-800 numbers, (new as of 2005)
-Prepaid business reply addresses available
-SMS/text messaging for instant call back
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Entering the Indian Market (cont)
Payment processing:
•Can charge credit cards in Indian Rupees or any foreign currency,
(available via local charging agents or international payment
processors like Pacific Network Services)
•Customers have ability to cancel cheques 3 months after issue
•Customers can dispute credit card charges up to 6 months after
charging, (most charge backs occur within 2-3 months)
•Cash on Delivery is a very popular payment method with collection
rates of over 90%
•Do not ask for cash as the Indian Rupee is not a free flowing
currency
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© 2006 Regency Direct Mail Ltd.
Case Study 1
CUSTOMER
International Leather Shop
Product
Cheque Book Wallet
Client Brief:
Merchandise offer through Billing Statement Insert
Targeted Audience
All Card Base
Ticket Size
Rs. 399/-
Vehicle
Billing statement insert through.
Citibank
ICICI Bank
HDFC
Standard Chartered Bank
Quantity
600,000 inserts
Response
4.2% response at an average order size of 1.4.
Result
The advertiser initially received 25200 orders adding up to a
sale of 35280 Cheque Book Wallets and still going!
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© 2006 Regency Direct Mail Ltd.
Samples:
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© 2006 Regency Direct Mail Ltd.
Case Study 2
CUSTOMER
Global Leaders
Product
Indian Leadership Summit, November 2006
Client Brief:
Two day summit featuring talks from Tom Peters, Rudolf Giuliani, and
others including Indian Leaders.
Targeted Audience
Top Level Management, (CEOs, COOs, CIOs, etc.)
Ticket Size
US$1,782.00 to 2,291.00
Vehicle
Billing statement inserts, (gold and platinum cards) and solo mailings
Quantity
Response
Global Leaders researched the Indian market for 6 months prior to
launching. Doing your homework pays!
Result
Early responses are very promising, (campaign was just launched early July
2006)
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© 2006 Regency Direct Mail Ltd.
Samples:
www.rdmipl.com
© 2006 Regency Direct Mail Ltd.
Case Study 2
CUSTOMER
Global Leaders
Product
Indian Leadership Summit, November 2006
Client Brief:
Two day summit featuring talks from Tom Peters, Rudolf Giuliani, and
others including Indian Leaders.
Targeted Audience
Top Level Management, (CEOs, COOs, CIOs, etc.)
Ticket Size
US$1,782.00 to 2,291.00
Vehicle
Billing statement inserts, (gold and platinum cards) and solo mailings
Quantity
Response
Global Leaders researched the Indian market for 6 months prior to
launching. Doing your homework pays!
Result
Early responses are very promising, (campaign was just launched early July
2006)
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© 2006 Regency Direct Mail Ltd.
Questions?
Dharti Desai - Director
Sanj Aggarwal - Director
Regency Direct Marketing (I) Pvt. Ltd.
Regency Direct Mail Ltd.
302, Manish Commercial Centre,
Dr. Annie Besant Road, Worli,
Mumbai – 400018, India
202B – 33228 South Fraser Way
Abbotsford, BC, V2S 2B3
Canada
Phone: +91 22 2490 3410
Fax:
+91 22 2490 3415
Phone: +1-604-853-3035
Fax:
+1-604-853-3035
Email: [email protected]
Email:
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[email protected]
© 2006 Regency Direct Mail Ltd.
India: Is it really a gold mine?
Presented by:
Dharti Desai
Sanj Aggarwal
www.rdmipl.com
© 2006 Regency Direct Mail Ltd.