DIRECT MAIL AT RUSSIAN POSTCustomer-oriented approach through data aggregation

DIRECT MAIL MARKET POTENTIAL IN RUSSIA IS ESTIMATED AT THE LEVEL OF 169 MLN EURO IN 2017

167 169 171 173

718

2533

2016 2017 2018 2019

Direct Mail Market Potential

Russian Post

4,2% 10,7% 14,6% 19,1%

ХХ% - Share of Russian Post (from market potential)

It is expected that Russian Post will be able to increase it’s sales of Direct Mail twice by the end of

2019

Russian Post is the only player in Direct Mail marketin Russia with great growth opportunities

§ Direct Mail market potential in Russia is estimated at the level of 169 mln euro in 2017

§ The average growth rate of Direct Mail market potential in Russia is projected at the level of 1,3%

§ It is expected that Russian Post will achieve a share of 19,1% of Direct Mail market potential in 2019

EURO, mln

THERE ARE TWO MAJOR REASONS WHY DIRECT MAIL IS ON DEMAND IN RUSSIA

DIRECT MAILRUSSIAN POST

BIGDATAThe biggest

offline data in Russia

PRODUCTLow price &

Quality control

Russian Post’s BIGDATA

BIGDATA OPPORTUNITIES

§ Russian Post has been accumulating households activities for 3,5 years

§ Current number of unique attributes exceeds 70 units

§ Russian Post has already processed more than 700 requests in 2017 (YTD)

71mlnmoneytransfers

297 mlnparcelsdelivered

1blncopiesof

newspapers&magazines

2,5blnlettersdelivered 60mln

households

120mlnclients

4,35 mlncompanies

6,5mlnvisitorsperday

Annually

RUSSIAN POSTS’S BIGDATA COVERS BOTH B2C & B2B SEGMENTS

BIG DATA THAT IS USED IN RUSSIAN POST HELPS TO IDENTIFY KEY ATTRIBUTES OF EACH INDIVIDUAL HOUSEHOLD

The analysis is based on a unique reference database of postal addresses within the framework:

§ Including all households in Russia§ excluding buildings and properties which are not related to

administrative buildings

Address

Gender

Age

Income

Car

Marital status

Presence of children

Interests

More than 70 attributes are used to identify interests of the separate household

THE VOLUME OF MAJOR SEGMENTS IN RUSSIAN POST

Addresses Clients

7,96 mlnfamilies

0,83 mlnfamilies with children

14,28 mlnmen

21,8 mlnwomen

12,31 mlnsubscribers

28,47 mlnpensioners

10,98 mlninternet shoppers

5,91 mlncar owners

4,35 mlnB2B

Addresses (companies)

BIGGEST COMPANIES IN RUSSIA HAS ALREADY TRYIED DM-COMMUNICATION VIA RUSSIAN POST

CASE STUDY: L’OREAL LUXE

Background

Solution

Results

Launch of new products of the YvesSaintLaurent brand

Distribution of samples of products of the brand to stimulate online and offline sales. Key target group: women aged 18-25, internet shoppers (USA, Europe but not China), car owners. An average monthly volume of the mailing is 10k copies

10% response rate was achieved

THEBESTDM-CAMPAIGNINWESTERNEUROPEACCORDINGTOTHEFEEDBACKTHATWASRECEIVEDFROMTHECLIENT

CASE STUDY: METRO CASH & CARRY RUSSIA

Background

Solution

Results

The company decided to reduce it’s costs in terms of distribution of the catalogs

Russian Post’s network was used with the unique delivery system with signed acknowledgement using Direct Mail. The monthly volume of distribution reached up 250k copies

The company increased it’s distribution volumes via Russian Post from 13% to 35%

CASE STUDY: POCHTA MARKET

Background

Solution

Results

Russian Post created it’s own online-catalog and tried to improve the sales

Towns with the population up to 20k people and special segmentation were covered during the mailing. An average quarterly volume of the mailing is 0,5 mln copies

Segment Number of households Response rate

Active subscribers 50 004 2,17%

Women with children 200 033 5,97%

Women 50 443 2,73%

Internet shoppers 150 127 0,56%

Subscribers of the medical publication 50 632 1,32%

RUSSIAN POST HAS DEVELOPED A NEW CHANNEL TO STRENGTHEN INTERNATIONAL COMMUNICATIONS VIA DIRECT MAIL