Mosaic Launches New Targeted Marketing Model for Deregulated
Industries: Amerada Hess Corp. signs on as first client
March 27, 2000
TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX), a worldwide leader
in outsourced marketing services, has announced the launch of an
innovative targeted marketing model that increases customer
acquisition for companies in newly deregulated industries. Mosaic
Precision Sales ("MPS"), a newly created business unit based in
the UK, will service these clients and help them connect directly
with their consumers. The UK Energy Marketing subsidiary of
Amerada Hess Corporation, one of the world's largest energy
companies, has signed a direct selling contract with MPS worth
approximately $10 million over the first twelve months.
MPS' proprietary software identifies the ideal customer prospects
for the client, based on geographic and demographic information,
and then MPS establishes the relationship with the consumer by
sending field sales experts to sell services at the consumer's
door. Currently the model is being developed for clients in high
volume consumer services such as gas, electricity, Internet
services, digital television, financial services and telecom. The
model can also be extended to business-to-business services.
"If a client wants to know where they will find their next 50,000
best customers, they will come to us," said Alan Lias, Managing
Director of MPS. "These are highly competitive sectors where a
targeted, face-to-face relationship with your consumer is
essential."
The United Kingdom is the world leader in utility deregulation.
Despite the gradual deregulation of the telecom and energy sectors
over the last decade, customer inertia remains high and new
suppliers have experienced difficulties convincing customers to
switch brands. In early pilot programs, targeted direct selling
has had a tremendous impact on breaking customer inertia that
traditional channels to market such as direct mail and broad scale
advertising have been unable to achieve.
"In the energy supply industry, where customers cannot tangibly
see a differentiated product, it is difficult to convince them to
switch from their incumbent supplier," said Dr. Caroline Harper
OBE, Managing Director of Amerada Hess. "Traditional marketing
methods such as direct mail alone do not achieve the volume of
sales needed. The targeted direct selling method that MPS offers
is unique because it combines the targeted approach of direct mail
with the proven success of door-to-door selling."
MPS will be one of the few outsourced suppliers with such sales
expertise. Fee structures will be geared to sales results.
"Mosaic Group provides an expertise that is second to none in the
world for direct to consumer sales," said Mike Cottman, President
and Chief Operating Officer of Mosaic Group. "With our proprietary
software that identifies target markets, our microcomputer
information gathering system, and our expertise in human resource
management, we offer our clients leading edge technologies and
sales expertise that produces measurable results."
Mosaic Group Inc., with operations in the United States, Europe
and Canada, provides outsourced marketing services on an
integrated basis to leading corporations serving international
markets. Mosaic combines strategic thinking with leading-edge
technologies to effectively deliver immediate and measurable
results for its clients. Marketing solutions include electronic
marketing, e-commerce, new media services, contract sales,
merchandising, field marketing, direct marketing, database
development and management, product promotion, corporate
communications and sales force training. Mosaic, which has
approximately 71 million shares outstanding, trades on the TSE
under the symbol MGX.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Mosaic Group Inc.
Ben W. Kaak
EVP & CFO
(416) 813-4272
kaakb@mosaicgroupinc.com
or
Catherine Linley
Public Relations
(416) 813-4277
www.mosaicgroupinc.com |
