INTEGRATED: INTEGRATED ISSUES; Why are fmcg advertisers fighting shy of using direct mail?

Assessment of direct mail remains one of its biggest problems.

Assessment of direct mail remains one of its biggest problems.



Clients in fmcg companies have yet to be convinced that direct mail can

be used strategically to build their brands.



Research carried out by the Direct Mail Information Service across ten

fmcg companies confirms that many clients think direct mail is too

expensive to be used in the low-priced consumer goods area.



The report concludes: ‘Many fmcg companies need to take a quantum leap

from current direct mail activity if it is to be of long-term value.’



Nigel Dugdale, the sales and marketing manager at Barr Soft Drinks,

concurs exactly with the report’s findings. He says: ‘Direct mail is an

excellent way of introducing products and gaining trial, but it is no

way to build an image.’



Dugdale uses direct mail to promote a new squash brand, called St

Clements, but steers clear of it for Irn-Bru. He explains: ‘The cost is

prohibitive. In the soft drinks market, where the consumer has a big

repertoire to choose from, the key to success is the ubiquity of the

brand.’



This is exactly the attitude that Jo Howard-Brown, a partner of the HBH

Partnership, which runs the DMIS, is campaigning to eradicate.



She says: ‘The major problem is evaluating the long-term effect of

direct mail. Fmcg clients are novices in the area, and there is not yet

enough research available to convince them that direct mail can produce

long-term results.’



But Jeremy Woods, who, as marketing manager of instant hot snacks at CPC

foods is in charge of the Golden Wonder Pot Noodle brand, is more

optimistic.



CPC has developed extensive databases which are frequently used for

mail-outs. Woods believes: ‘They are useful as a long-term loyalty

mechanism, and as a way of keeping in touch with our core customers.’



Dugdale, however, is sceptical about the databases themselves, and

questions whether they can be trusted to come up with genuinely relevant

names and addresses.



Howard-Brown believes that attitudes will change as evidence is being

amassed by the direct mail industry. She insists: ‘Own-label is

constantly threatening fmcg products, and an ongoing dialogue with

consumers is a good way to create affinity with a brand.’



The lack of research to back up direct mail’s case means that marketers

still think the cost of each mailing, which Dugdale estimates at pounds

2 to pounds 5 per piece, coupled with its perceived short-term benefits,

limit its usefulness.



The report found that companies were willing to invest in direct mail

for product launches, but thought of its use as largely experimental,

and were unclear what they should expect in terms of response.



Another concern that was uncovered by the research was doubt about the

ability of databases to identify and reach the right customers, rather

than simply those with a predisposition to respond to promotions.



Heinz is experimenting with direct mail in parallel with image

advertising, and is still waiting for the results of research to find

out how effective it was in maintaining, and even building, the brand.



Many companies are increasing their spend below the line, and making a

lot of noise about using direct mail. But until they are convinced that

it can be used strategically as well as just tactically, its place in

the marketing mix will be limited, and the ‘quantum leap’ will never get

off the ground.



Topics

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content