Direct Tv Venezuela

Venezuela ripe for mining dm gold

WASHINGTON, D.C.--Look no further than your own backyard for direct marketing's gold mine of the year, advises Jack Hardy, a consultant with Tudor Direct, an integrated direct marketing firm based in Morristown, N.J.

Leading a seminar on Latin American opportunities at the International Direct Marketing Conference held here in December, Hardy portrays Venezuela as Latin America's most stable nation and potentially the most lucrative regional opportunity for direct.

Warning direct marketers who are fixated on Europe or Asia not to be myopic, he says newcomers to the European or Asian markets won't find them exactly "a piece of cake." Direct marketing, he reasons, is so well established in those regions that gaining a competitive edge is tough. "Asia is the world's fastest growing economy," he admits, "but Japan's domination is beyond challenge. And it will take years of effort and mountains of capital to exploit the potential some people foresee in Eastern Europe."

But Latin America, he maintains, and particularly Venezuela, is home territory for many U.S. companies. What's more, the region is exhibiting a "flash fire" of economic change and moving to free market economies, he says.

With Venezuela leading the way, probably the most significant of the changes flooding Latin America, Hardy believes, is the elimination of market protection, government subsidies and price controls. "Trade barriers are coming down," he says, "and regulations on foreign capital investments are being relaxed."

While German and French banking and industrial organizations are dominating development of eastern and central Europe, "smart North American, European and Japanese companies are penetrating Latin America, and Venezuela in particular," Hardy states.

He sees Venezuela, where he resided until moving to New Jersey last month, as particularly attractive to U.S.-based marketers--especially those who have already wet their feet in the U.S. Hispanic market and have gained experience in Hispanic linguistic and cultural characteristics.

"Despite the image you might have of the sleepy Latin American on a burro," Hardy says, "Venezuela is wide awake, with Latin America's highest standard of living, a stable political and economic base, a strong tradition of democratic government, abundant natural resources, low inflation, a stable currency and an industrious population."

He also points out the marketing appeal of Venezuela's demographics: a literacy rate of 89 percent, English as a mandatory second language, 70 percent of the population under 30, and a tri-ethnic culture (Spanish, Indian, African).

"Consumer patterns follow U.S. trends," he adds, "and there is 95 percent TV penetration, cable is growing, and people pay their bills." For substantiation, he cites his experience as an international marketing executive with Colgate-Palmolive, which had its lowest bad debt experience in Venezuela out of all its overseas markets.

Best of all, he maintains, direct marketing is in its infancy and can't miss in Venezuela. He cites several reasons for such optimism: crowded shopping centers, a general lack of product information throughout the country, more dual-income families, small cities and towns wanting big city goods and services, the expansion in home telephone installations and the growth in credit cards--about 1.45 million active cards at present.

When it comes to direct mail, what works in the U.S. works just as well in Venezuela, Hardy asserts. "Response rates run high," he states, "probably because direct marketing is so new." As proof, he cites a targeted bank offer that got an 87 percent response. The norm in many cases, he says, is 40 percent to 60 percent.

But he recommends that direct marketers adapt U.S. packages to accommodate Venezuelan language and cultural sensitivities. By way of example, he cites General Motors' difficulty in introducing the Chevrolet Nova to Latin America some years ago. It seems "nova" in Spanish means "doesn't go," hardly a propitious name for a car. "Make sure your English doesn't translate to a disaster," he warns.

He also recommends adapting a product to Latin American tastes when possible. He notes that Pepsi absolutely owns the Venezuelan market because it did what Coke couldn't or wouldn't do--Pepsi modified its untouchable secret syrup formula by sweetening it extensively to suit local taste buds.

According to Hardy, American Express has a very successful catalog going in Venezuela and even sells computers, cars and insurance through direct marketing. Tupperware also is concluding a recent three-level direct marketing campaign that has proven to be its greatest global success story, Hardy says, but results were still being tabulated at press time.

First class postal service is good and reasonable (20 cents for under 0.7 ounces, 30 cents for 0.7 ounces to 3.5 ounces), Hardy notes. Anything not mailed first class goes as "printed matter."

"Telemarketing is also taking hold," he says, "and a variety of products are being sold, ranging from banking services, pizzas, and Procter & Gamble packaged-goods, to Tupperware, airline trips and management courses." And all accomplished without 800 numbers, he adds, since the country doesn't have toll-free telephoning as yet.

Hardy rates the list situations as "improving." Venezuela has one of the most developed databases in the world, he says, thanks to Metro Guia, a directory similar to yellow pages, which can be used for consumer and business-to-business marketing. His own firm also supplies compiled lists, he adds.

Direct marketers who want more information on getting started in Venezuela can contact experienced consultants, he advises, as well as the Venezuelan Chamber of Commerce, the ITA (an international trade organization based in Washington, D.C.), Banco Venezuela (the nation's largest banking organzation) and CitiBank, headquartered in New York.

PHOTO : Caracas, Venezuela, provides attractive dm opportunities with its high standard of living, stable political and economic base, low inflation and a solid currency.

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