IDN Conference – Hong Kong

Direct Marketing Agency of the Year 2011 & 2012

© 2013 Datatrade Limited * CONFIDENTIAL AND PROPRIETARY INFORMATION * All Rights Reserved

IDN CONFERENCE – HONG KONG

Your New Solution | Expansion into Greater China

19 April 2013

Presented by King Leung, Managing Director – Datatrade Ltd.



o Specialize in loyalty marketing outsourcing Loyalty Consulting Data Analytics Technology Marketing Execution

o Incubated since 2004o Official launch in Q2 2013

o Overall brand custodian in helping overseas companies expand in China

o Incubated since 2004o Official launch in Q2 2013o Acquisition through network of

local agencieso Loyalty “in-sourced” to Clix

o Founded in 1983o Direct Marketing



• Since 1983• Former International Advisory

Board – Direct Marketing Association in the US (DMA)

• Henley

• Since 1988• Board of Director – HK Direct

Marketing Association (HKDMA)

• Henley

• Since 1983 • Former Chairman – Union

Carbide Asia• Harvard (AMP)

Seasoned management team with 90+ years of direct marketing experience

King Leung

Managing Director

Monica Chan

Group Managing Director

Lilian Salenius

Co-founder

Bo Salenius

Co-founder / Special Advisor

• Since 2003• Former Booz Allen Hamilton /

KPMG Consulting• University of Chicago (MBA)• Stanford Who’s Who (Marketing)



We support our clients’ projects through our 120+ team members across 4 major cities in Asia Pacific

Manila, The Philippines Shanghai, China

Guangzhou, China

Hong Kong, China (Headquarters)

Client facing Program planning Project management CRM consultancy &

analytics IT architecture

design Data management Operation

management

Client facing Campaign planning Project management Data management Operation

management

IT development Data

management Contact centre

Rep Office

5



2005 2006 20092007 2008 2010

Snapshot of Datatrade’s clients in recent years (selected clients only)

20042003 &

Before



… and since industry domain knowledge is one of our major value propositions, we are targeting industry verticals that leverage on our industry experience

Beauty Fashion and Accessories

Health

Food & Beverages

Hospitality



Beauty



Fashion



Health



Food & Beverages



Hospitality

http://www.peninsula.com/index.html



DIRECT MARKETING AGENCY OF THE YEAR AWARD Local Hero (#1 independent agency) (2011 &

2012) Bronze Overall (2011) > Silver Overall (2012)

We are honored that our work was recognized by industry by winning Direct Marketing Agency of the Year Awards from Marketing Magazine in 2011 and 2012

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Phase 2 – Data Management

Data Synchronization (ETL)

Data Entry Data HostingData Cleaning

Phase 5 – Operational Support Channel Coordination Contact Centre

Support FulfillmentEvent Management

Phase 4 – Marketing Planning & Execution Creative Campaign

Measurements

Campaign Delivery

(Operation Support)

Marketing Strategy (e.g., media plan)

CRM Campaign Planning

Existing client’s agency / Clix’s partnerClix

Phase 1 – Infrastructure Setup

Other Infrastructure (Campaign response

tracking, etc.) Web DevelopmentOverall Technical Design

(Data warehouse)Overall CRM Program

Strategy

Phase 3 – Learn about Customers

Customer Segmentation &

Analytics CRM ReportingCustomer Research

Customer Lifecycle Management Consultancy

CRM Methodology and Approach

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Infant Milk Formula | Stock Reservation Program



Client Challenges Foresaw an increasingly tight supply of infant milk formula for local mothers Our Value Adds Proactive planning from ramping up active engagements with our Mother’s Club members to

online sales system upgrade to resources planning on operation support were made in early 2012 in anticipation of sudden spike in demand, esp. by end of 2012 through CNY in 2013

Building & maintaining a passionate operation team who serve members with “heart”! Results Friso achieved No.2 marketshare in 2012 where the client attributed part of success to our

“personal” member engagements – which helped foster their brand reputation and loyalty over the 7 years of our partnership

Overall member engagements increased by over 500% Significant increase in online sales Despite exponential demand growth, our “personal” member engagements were being widely

recognized by public (see customer online excerpts on last page)

Case Highlights



Print communication for key channels

Note: Above-the-line executed by client



Clear message about commitment on securing supply

Note: Above-the-line executed by client



In-store Signage Communication



Clear info about stock supply in prominent position



Customer Feedback Online



Client Challenges Inadequate in-house expertise and resources to analyze and take action on customer data Little visibility of customer insights (e.g., didn’t know where to focus in driving customer

retention) Our Value Adds Performed customer segmentation and CRM analytics to understand unique characteristics

across different customer segments more intimately Outlined execution roadmap, esp. on Customer Lifecycle Management programs – New

Customer Cultivation, Retention, Value Segment Migration – in order to better focus CRM efforts

Uncovered in-depth customer insights for the Hong Kong market for the first time in the history of the client

Results Identified substantial business opportunities through low hanging fruits in customer retention

and cross-selling Successfully gained buy-in from client’s regional marketing and CRM leadership regarding

our proposed longer term CRM strategy and execution roadmap

Customer Intelligence Discovery



SIZE OF CHINA OPPORTUNITIES



Among global leaders, China is their #1 expansion destination…



Total imports accounted for USD 1.7 trillion and its growth (24.9%) has outpaced export (20.3%) in 2011

Total Imports: USD 1.7 trillion

= 2011 GDP of Canada, #10 in the

world (IMF)

Source: China Census Bureau



Domestic Consumption, a USD 2.9 trillion market, had double digit growth over the past 5 years

Domestic Consumption Market Size:

USD 2.9 trillion

= Between GDP of Germany (#4) and France

(#5) (IMF)

Year-on-year (YOY) Growth Rate:

17.1%



Boosting domestic consumption is a key policy drive from Chinese Government for next 5-10 years



Consumer, industrial products and services in China are amongst the most attractive sectors for foreign players



Our GAX’s Support Scope

Gateway to Asia

Marketing Strategy

Channel Set-Up

E-Commerce Retailer

Marketing (Customer

Acquisition)

Operation support

Customer Relationship Management



Nature: B2B Path: Hong Kong, China, Taiwan and

Singapore concurrently via eCommerce since 2004

Legal Entity in China: No Products Registered in China: No Channel(s)

• eCommerce – individual packages shipped directly from US into Asia markets

Accept RMB? No

Marketing• Offline (Trade magazines); Search

Marketing

Case Study #1 – DigiKey (USA)



“Digi-Key initially engaged with Datatrade in 2004. Our sales in Greater China at that time was very small. We credit Datatrade with being a truly significant factor in consistently and capably supporting our exponential sales growth in Hong Kong, Singapore, Taiwan and China.”

Mark LarsonPresident - Digi-Key Corporation

Sales over USD 1.5 billion in 2012

(with significant % growth from Asia)

RESULTS

Ranking of worldwide marketshare rose

from 11th to 8th



Case #2 – OZ Kids (Australia)

BackgroundTo support the new product launch, we have designed a 360-degree marketing campaign for OZ Kids on both offline & online channelsDigital / Technology Traditional

• Product website with integrated webstore

• Facebook Fans Page• Campaign application of

Facebook• Weibo• Online Advertising

• Celebrity endorsement• Grand product launch event• Print Ad in baby magazine• PR events

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Showcase - OZ Kids (Website) Multi-language

Facebook Connect

Integrated webstore

User-friendly CMS Web-based membership

ePayment mechanisms

Celebrity endorsement

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Webstore

Multi-currency

User-friendly shopping cart

37



Facebook Fans Page

38



Facebook Campaign Application

39



Weibo (Chinese Twitter)

Weibo verification

Activities and sharing

40



Online Advertising

41



PR Events



Nature: B2C Path: Hong Kong > China shortly after Legal Entity in China: Yes (from scratch) Products registered in China: Yes (30+ SKUs) Channel(s):

• Phase 1 – Offline retail in Hong Kong

• Phase 2 – Offline retail in China• Phase 3 – eCommerce in China where DT helps negotiate with largest health & beauty retail chain in Hong Kong and southern China

Accept RMB? Yes Marketing

• Offline (Print) + Online Display + Blogging + In-Store Promotion

Case Study #3 – Beauty Brand (USA)



Think about the advantage of global agencies with their global accounts, once you advise the client beyond your local market, they have less incentive to change agency due to higher switching cost.

Why you should bring your local clients abroad



The Suggested IDN Working Model

IDN Affiliate GAX Client Management

Marketing / Brand Strategic Advisory

Brand story / Creatives

Local logistics coordination (e.g., Swedish Post)

Local execution in Greater China (Above-the-line, Below-the-line, CRM)

Feedback on local market knowledge



Discussion: How could we get the ball rolling?

Do you see this “China Solution” as a viable new product for your agency?

Any of your clients that have plans to expand into China?

What are their considerations / “mental blocks”?

Any client that we can pilot with?



Any Questions?



Thank You!

This document is prepared by:

King Leung, Managing Directoro [email protected] (+852) 21575338

Sheila Chan, Marketing Officero [email protected] (+852) 21575322

Jennifer Tsui, Senior Consultant – Consumer Intelligenceo [email protected] (+852) 21575337

mailto:[email protected]



IDN Conference – Hong Kong

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