Next Challenge: Strategy Led Agencies Will Carry the Day

Michael Porter’s book “Competitive Advantage” and Philip Kotler’s, Kotler on Marketing  How to Create, Win and Dominate Markets are two key books that t drum and reinforce the importance of strategy in building and sustaining businesses especially in competitive environments.

Until recently, advertising agencies and clients only give a passing thought to this subject as strategic as it is to the continued existence and progress of businesses.

Hitherto, it was mostly creative for creative sake. Clients will often call for pitches with little or no emphasis on the strategic aspect of the creative presentation. This mode of operation, either by the client or the agency is becoming a thing of the past, taking cognizance of developments in the business arena. Advertising and other communications related agencies are reviewing and updating their business strategy departments to be in tune with clients’ expectations and demands.

With some, what is basically label the new live wire of the agency strategy department, others call it account planning department. The strength and contribution of this department to the growth and survival of the agency is not negotiable. It is the power house.

This could be the rationale behind the recent inauguration of the Account Planning Group, Nigeria, an affiliate of the Account Planning Group UK in Lagos. The purpose is to give vent to the importance of strategic planning at both the agency and the client levels. The membership of the body is an admixture of those on the client as well as agency sides.

During the inaugural knowledge session of the body tagged “A strategy master class” held in Lagos in June, Michael Adeyanju, the President of APG revealed that the ambition of the body is principally to be a world class knowledge capacity building institution for marketing and communications planning practitioners in Nigeria and indeed in West Africa.

This really underscores the importance of strategic planning on both sides across industries and locations.

With the revolution on, UACN Plc has endorsed it by demanding for strategic input by agencies seeking to work for the multinational’s businesses.

In 2006/7, UACN held general pitch in which all the confederating businesses in the group were subjected to the same review processes to ensure a standardized pitch. Bringing all its businesses into one central pitch team, the contenders to the businesses were tasked on core strategy as a pivot for being able to perform on the business. The process produced the incumbents which include TBWA Concept, Rosabel, Brand Believers and Insight Communications. The 2007 review ousted some of the longest serving agencies on the business. Though, some equally managed to pass through the “eye of the niddle”.

A distinguishing factor of that pitch remains the subjection of agencies to a very rigorous strategy presentation. This phase thereafter set the tone for the creative presentation. The strategy is like the building plan which determines the structure of the building being put together pure and simple.

For the marketing egg-heads at UACN, the strategy led approach seems the best root approach to getting around the marketing communications and competitive challenge.

Findings reveal that the conglomerate impressed with its achievement with the first central pitch system, has commenced another round of account reviews. To provide a level playing field, every agency worth its salt in the industry is invited to take a shot at the multimillion naira multi faceted businesses. The 2009 review is in anticipation of a 3-year contract about rounding-off with the incumbents. Nine agencies including the incumbents have been invited to participate in the review. These include Bates Cosse, 141-Worldwide, Prima Garnet, DKK and Noah’s Ark.

Businesses on toss include UAC Foods  Gala, Supreme Ice Cream, GM business  Isuzu, Grand Cereals & Oil business, MDS Logistics’ business, New Drink  Swan Carbonated, and of course, the Food Court Businesses which include Mr. Biggs, Village Kitchen, CreamyInn, ChickenInn, and Pizza-Inn. The water businesses which include Goosy and Swan are also said to be shopping for advertising agencies.

ShopFloor can reveal that six of the above listed agencies have been shortlisted for different aspects of these businesses. This is as a result of their performances at the strategy presentation stage.

These agencies therefore move to the next round of the pitch, that is, the creative presentation. From the incumbents, TBWA Concept, Brand Believers and Insight made the list. Others, which qualified outside the incumbents include Lanre Adisa’s Noah Ark, Bates Cosse and 141-Worldwide. These six will lock horns to have a chunky piece of the highly rewarding businesses. The Account Planning Group’s (APG) move to elevate account planning is in sync with the reality of the day. This is also in line with demands by corporates like the UACs, MTNs and similar businesses of this world. All point to one fact that the few agencies that well routed in business and communications strategy will rule the market. It shows there is a new realization and therefore demand on marketing communications agencies to be strategy led in business solution recommendations to clients. Creative is not means to itself but a means to an end. Respected marketing practitioner, George Thorpe said that much during his presentations at the APG Masters Class. More on this lecture after this time out ….

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