| MUMBAI: "Stick to core competencies
- outsource the rest" seems to the mantra for ad agencies! A
new breed of one-stop direct marketing shops for loyalty programmes,
corporate gifting and mail-orders undertaken by corporates (such as
banking institutions, credit card companies, automobile and retail
companies) has emerged! Ad agencies are coordinating or outsourcing
direct marketing (DM) requirements of their clients from companies
top players such as Brand Magnet and Infovision amongst others.
Brand Magnet (a division of 15-year old 1st Mail Order company
promoted by Leena Godiwala) has completed two
years in the sphere of "fulfillment" related services.
It also provides back-end logistics complete with warehousing services
and catalogue services.
Established in Mumbai in 1988, 1st Mail Order is India's pioneering
mail order house which markets innovative gift products, for personal
and corporate gifting needs, through its colourful mail order catalogues.
Brand Magnet currently handles companies such as Standard Chartered
Bank, Tata TELCO's Indica and Indigo divisions. Infovision too has
clients such as The East India Hotels (Oberoi group), Barista and
Philips.
In fact, these companies also provide services to websites (such
as rediff.com, indiatimes.com) which have online shopping channels.
Adequate care is taken to receive orders, source the required goods,
package them attractively, deliver them to the client, collect payments
and handle customer service.
While undertaking these above mentioned activities, these companies
have become an extension of BPO (business process outsourcing) and
IT enabled services (ITES). Corporates and agencies who don't have
requisite expertise in this segment have obtained a considerable
measure of success by indulging in such
direct marketing activities.
Brand Magnet director marketing Vanashree Ghate says:
"We provide low-cost options as we have adequate resources
including affiliates in 11 cities mapping the length and breadth
of the country. Otherwise, companies have to dedicate resources
and invest in infrastructure to tackle complaints and after-sales
services." Ghate is a veteran with experience in ad agencies
(FCB Ulka) and marketing (Faber Castell India amongst others).
Infovision assistant VP Rohit Gupta says: "InfoVision Group
has been promoted by professionals, with vast experience in the
IT enabled service industry including software development . The
company philosophy is focused upon a relentless pursuit of
excellence and quality in every sphere of its activities. Whether
it is the field of managing call-centers, data processing, software
development or eMail response activity, InfoVision Group has the
resources and infrastructure required to meet future
challenges of an ever changing technology environment."
The database for the direct marketing events are either obtained
from the client or sourced locally through allied companies. Brand
Magnet, for instance, has access to 135,000 names which are on the
database of its parent organisation 1st Mail Order. Through 1st
Mail Order's existing brand equity, new names are being added to
the database every day.
Infovision also has access to the several names compiled by sourcing
lists from people who sell databases. Brand Magnet also does regular
mailing to more than 50 per cent of the above mentioned list.
"With the hectic marketing for emerging sectors such as the
telecom, retail and insurance sectors, more corporate entities are
open to our suggestions. However, ad agencies must realise that
organisations such as our have the capabilities to take complete
responsibility for the services," says Brand Magnet's Ghate.
The business pie is increasing with several new insurance companies
(ICICI Pru Life, Aviva, Birla Sun Life, Tata AIG amongst) others
aggressively using the direct marketing route. Retail companies
such as Shoppers Stop, Westside and Globus strongly believe in loyalty
programmes for wooing retail customers.
JWT's direct marketing Thompson Connect's head Rakshin
Patel says: "Loyalty programmes help brands and services to
establish a one-to-one equation with clients and customers. We look
at several viable options based on the client requirements and budgets."
Looks as if several ad agencies and corporates are realising the
importance of outsourcing resources for specialised loyalty programmes
or relationship-building programmes which are conceived with the
intention of providing long term benefits!
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