Riding Piggyback

Riding  Piggyback

20 Feb 1994

I have, elsewhere mentioned about taking-up “ Direct Mailing “ activity as a business diversification
The more I think about it, the more it appears to have a synergy with our existing business of Executive search

There are following similarities in both these businesses :

Ø  Building up databases of names / addresses from any number of sources

Ø  Sending out MAILERS

Ø  Receiving “ response “ – then Categorizing , Coding, Computerizing

Ø  Offering databases for clients to “ search and select “ , one or more persons who meet their needs

Executives belong to the “ affluent “ class and are potential buyer of goods and services . With liberalization of economy, they are going to be in greater demand and will get progressively better paid. This class will get more & more affluent and will have increasing purchasing power


This will be a “ sought after “ class by all manufacturers of goods / provider of services
Service Sector itself will grow in a big way.

This comprises,

Ø  Hotel / Housing
Ø  Tourism
Ø  Hospitals / Health
Ø  Financial Services ( incl. leasing / hire purchase )
Ø  Banking / Mutual Funds
Ø  Courier
Ø  Cable Network ( for TV )
Ø  Telephone / Fax networks ( E Mail / Voice Mail )
Ø  Software
Ø  Transport
Ø  TV ( Star – Zee – MTV etc )
Ø  Education / Publishing Idustry
Ø  Insurance ……….etc

The list is huge

All the companies engaged in the Service Sector, want to increase their client-base. Obviously, each of these businesses is trying to :

Ø  Build-up its own database of clients ( existing / potential )

Ø  Reach out to these clients to offer their services
Both are “ continuous “ processes and market-driven
Continuously new clients have to be “ discovered “ and “ new “ services must be offered

Hence “ mailing lists “ must grow  all the time and mailers be sent out all the time

Many types of client-profile must be compiled ( continuously ). Eg :

Ø  Geographical
Ø  Racial
Ø  Social
Ø  Educational
Ø  Age  /  Sex
Ø  Purchasing power
Ø  Travel habits / Purchase habits

Each manufacturer / servicer, is interested in one or more profiles who could be his potential clients
We could start by offering to carry out mailing of literature / pamphlets / publicity materials, for a few select companies

Of course, we should carefully decide “ which “ companies would be interested in our database – and why . How does it stand to benefit ?


23 Feb 1994

Only yesterday there was an advt from a company which said, it printed and dispatched , all within one week, 5.8 lakh Annual Reports !

Tata Press perhaps send out 30 lakh in a month !
L&T has 16 lakh share-holders and Reliance has over 28 lakhs

Obviously such “ mailing activity “ has to be organized as a FACTORY with,

Ø  Storage ( of materials to be mailed )

Ø  Machinery to place / insert the material into envelopes / packets, seal the envelope , attach pre-printed labels, frank postage stamp, stack in bundles ( city-wise )

City-wise bundling would make it easier for Post Offices to accept such bulk posting

If volumes / weighs – as in case of annual reports – are too large, services of couriers / transport contractors must be hired

A local city-agent ( a newspaper distributor ? ) would undertake door-to-door delivery in each city / town

If large quantity of one/two page newsletters are to be dispatched , an automatic “ paper-folding machine “ ( magazine for holding mailers ), would be required. I am sure such machines are available

The entire process should be computerized / conveyorised / automatic to the maximum extent  possible so that minimum number of operators are required