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Direct Marketing Trends in the Czech Republic and Germany
Good neighborly relations
October 2007By Jürgen Höfling and Dr. Diane Rinas (published in the trade journal DIREKT MARKETING, October 2007 issue)
The Czech Republic's economy is continuing to show momentum. The dynamic growth since the Czech Republic became a member of the EU in 2004 is due to exports and to the interest shown by foreign investors. From the Czech point of view, Germany is one of the most important foreign trading partners. The Germans also value the Czech Republic as their most important trading partner in Central and Eastern Europe. However, even everyday consumer goods such as the perennial favorite, beer, unite the two countries in spirit.
International direct marketing experts, such as Deutsche Post Global Mail, can help companies gain a key competitive advantage by virtue of their precise knowledge of market conditions in a country.
The two countries are united insofar as they share identical preferences with regard to ordinary everyday consumer goods. The Czechs are just as passionate about drinking beer as the Germans. 40 percent of the three million hectoliters intended for sale went to Germany. Other interesting facts and consumer trends in the Czech Republic have been covered, among other things, in the current issue of Direct Marketing Monitor International, published by Deutsche Post Global Mail. Which sectors are booming? What determines purchasing impulses?
Which target groups are particularly attractive? What form of address achieves the greatest possible response?
Czech consumers have an above-average affinity to mailings. This makes them an extremely attractive target group for direct marketing campaigns. Advertising mailings have a strong presence in the Czech Republic. 74 percent of all respondents receive them at least once a week (in Europe: 67 percent). On the whole, Czech mailing recipients also display an active response attitude towards mailings. 95 percent state that they have read their mailings during the past year, 51 percent describe themselves as regular readers and 70 percent respond to their mailings at least once a year. This puts them far above the European average (52 percent). Indeed, after print advertising, mailings are the most popular advertising medium in the Czech Republic. So-called "best agers" aged 50 and over display a high affinity at 14 percent.
Hence, "best agers" are going to play a bigger and bigger role in the advertising of the future - also in Germany. At present, approximately 30 million people between the ages of 40 and 65 live there. They account for the highest proportion of the purchasing power in German households. This means they constitute a target group that marketing managers will be focusing on over the long term. That provides enough of an incentive, in other words, to gain a better understanding of their wishes and requirements. Generally, older consumers, irrespective of their nationality, attach importance to the right tone and are more likely to put their faith in companies with a well-known name. By using a personal form of address, it is possible to achieve a good response with this group. In Germany, this aspect plays a crucial role for 41 percent of people over the age of 50 who have an affinity to mailings. 33 percent of "best agers" there belong to the category of people who are willing to respond. 90 percent of German "be agers", compared to 94 percent of Czech "best agers", describe themselves as having an affinity to mailings.
The Czech Republic's economy is continuing to show momentum. The dynamic growth since the Czech Republic became a member of the EU in 2004 is due to exports and to the interest shown by foreign investors.
Which target groups are particularly attractive? What form of address achieves the greatest possible response?
Czech consumers have an above-average affinity to mailings. This makes them an extremely attractive target group for direct marketing campaigns. Advertising mailings have a strong presence in the Czech Republic. 74 percent of all respondents receive them at least once a week (in Europe: 67 percent). On the whole, Czech mailing recipients also display an active response attitude towards mailings. 95 percent state that they have read their mailings during the past year, 51 percent describe themselves as regular readers and 70 percent respond to their mailings at least once a year. This puts them far above the European average (52 percent). Indeed, after print advertising, mailings are the most popular advertising medium in the Czech Republic. So-called "best agers" aged 50 and over display a high affinity at 14 percent.
Hence, "best agers" are going to play a bigger and bigger role in the advertising of the future - also in Germany. At present, approximately 30 million people between the ages of 40 and 65 live there. They account for the highest proportion of the purchasing power in German households. This means they constitute a target group that marketing managers will be focusing on over the long term. That provides enough of an incentive, in other words, to gain a better understanding of their wishes and requirements. Generally, older consumers, irrespective of their nationality, attach importance to the right tone and are more likely to put their faith in companies with a well-known name. By using a personal form of address, it is possible to achieve a good response with this group. In Germany, this aspect plays a crucial role for 41 percent of people over the age of 50 who have an affinity to mailings. 33 percent of "best agers" there belong to the category of people who are willing to respond. 90 percent of German "be agers", compared to 94 percent of Czech "best agers", describe themselves as having an affinity to mailings.
The Czech Republic's economy is continuing to show momentum. The dynamic growth since the Czech Republic became a member of the EU in 2004 is due to exports and to the interest shown by foreign investors.
It's not what you say but the way that you say it
People with an affinity to mailings in both countries are in agreement as regards a personal targeting approach in mailings, the design of advertising mailings and the company's level of brand recognition.
The following rule applies to approximately half of all people who have an affinity to mailings: it is extremely important to use a personal form of address in mailings. This aspect is an essential part of achieving success in direct marketing. If the mailing is also packaged in a high-quality design, this will generate additional interest with 32 percent of Czech recipients. In Germany, on the other hand, mailings have better prospects of success if the sender is a well-known company.
The following rule applies to approximately half of all people who have an affinity to mailings: it is extremely important to use a personal form of address in mailings. This aspect is an essential part of achieving success in direct marketing. If the mailing is also packaged in a high-quality design, this will generate additional interest with 32 percent of Czech recipients. In Germany, on the other hand, mailings have better prospects of success if the sender is a well-known company.
Mailings with a well-known sender also have a better chance of being read by female consumers in both countries. In the Czech Republic, this is stated by 39 percent of the female consumers surveyed and in Germany by 42 percent. Female consumers also attach a great deal of importance to what is enclosed in mailings. 32 percent of German female consumers and 39 percent of Czech female consumers are attracted by samples. The figure for German men, however, is 16 percent and for Czech men, 20 percent.
The enhanced response generated by free branded samples can also be explained by the fact that Czech consumers attach an above-average level of importance to quality (59 percent) and brands (78 percent) by European standards. Samples give them an initial insight into the quality of the product. The Czechs' price consciousness is below the European average. It is not so much the price but rather the quality and freshness of the foodstuffs on offer that will convince customers to buy. Quality also plays an important role for German consumers. However, it is the brand that is the most important criterion. The price, at 42 percent, only ranks third in terms of importance. This still gives it a greater weighting in Germany than in the rest of Europe (37 percent).
Jürgen Höfling is Chairman of the Global Mail Divisional Board at Deutsche Post World Net
Dr. Diane Rinas is Senior Marketing Manager at Deutsche Post World Net
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The enhanced response generated by free branded samples can also be explained by the fact that Czech consumers attach an above-average level of importance to quality (59 percent) and brands (78 percent) by European standards. Samples give them an initial insight into the quality of the product. The Czechs' price consciousness is below the European average. It is not so much the price but rather the quality and freshness of the foodstuffs on offer that will convince customers to buy. Quality also plays an important role for German consumers. However, it is the brand that is the most important criterion. The price, at 42 percent, only ranks third in terms of importance. This still gives it a greater weighting in Germany than in the rest of Europe (37 percent).
Consumers' preferences are many and varied
The themes of health and wellness are proving very popular with consumers in the Czech Republic (39 percent) and throughout Europe (43 percent). Here, too, it is female consumers over the age of 50 who, at 49 percent, make up the largest percentage of the interest group. In addition, DIY and gardening are extremely popular with 73 percent of German women and 57 percent of Czech women over the age of 50. Of the Czechs who are willing to respond, at least 35 percent are interested in this sector. In Germany, the situation is similar with 26 percent of those who are willing to respond being interested.Dialog marketing continues to be on the up
The conditions for dialog marketing activities are very good in the Czech Republic owing to the high affinity to mailings. Companies benefit from an optimum environment there, enabling them to continue to attract the attention of consumers via mailings. And what is more, the potentials of the Czech market seem far from having been fully realized. Experts expect annual growth in the region of 25 percent in dialog marketing. Czech consumers' acceptance confirms this tendency because it is far higher with advertising mailings than with TV advertising. Dialog marketing of an entertaining nature appears to most closely approximate the needs of consumers.Jürgen Höfling is Chairman of the Global Mail Divisional Board at Deutsche Post World Net
Dr. Diane Rinas is Senior Marketing Manager at Deutsche Post World Net
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