TrinityP3 Agency Roster Structures

marketing management consultants

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Agency Supplier�Roster / Portfolio Structures

TrinityP3 October, 2010

CONFIDENTIAL


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Increasingly fragmented. Increasingly specialist. •  Marketers are finding themselves requiring a

more diverse range of specialist marketing communications services providers than ever before because of:

•  the advent and rise of digital communications technology and the associated increasing technical complexity

•  the fragmentation of media channels and the decreasing reach and engagement in traditional media channels

•  the ability of consumers to become publishers and co-creators in brand communications through social networks, blogging and micro-blogging

•  The traditional broadcast campaign style communications is being replaced by on-going conversations between consumers, marketers and the media.


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Service providers come in all types •  Creative Agencies •  Advertising/Creative •  Brand Consultancy •  Strategy Consultancy •  Channel Planning •  Retail Specialist •  Media Planning •  Media Buying •  Media Strategy •  Channel Planning •  Digital Media Planning &

Optimization •  Digital/Interactive Marketing •  Web Development •  Search •  Mobile •  Digital Creative •  Social media •  Apps development •  Platform development •  Email Marketing •  Customer Relationship

Management

•  Strategy Consultancy •  (B2B & B2C) •  Media Analysis •  Database Design •  Database Management •  Direct Response Management •  List Creation & Sourcing •  Point of Sale •  Promotions and Premiums •  Government Relations •  Media Relations •  Internal Communications •  Speechwriting •  Corporate Social

Responsibility •  Strategic Counsel •  Crisis & Issue Management •  Package Design •  Branding and Identity •  Signage •  Annual Report & Print Design •  Electronic production •  Video Production

•  Print Production •  Word of Mouth •  Connection Planning •  Custom Publishing •  Sales Promotion •  Experiential Marketing •  Sampling •  Entertainment •  Event Marketing •  Point of Sale •  Shopper Marketing •  Social Marketing •  Sports Marketing •  Sponsorship •  Telemarketing •  Word of Mouth •  Omnibus Research •  Qualitative Research •  Quantitative Research •  Online Research •  Concept Testing •  Brand Tracking….


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Best structure for managing your agencies •  The question remains, what is the best model

and structure to deliver the strategic and creative capabilities marketers require in the most cost and time efficient manner, delivering the most effective marketing outcome?

•  In many cases marketers find themselves making a trade off between the convenience of a single agency supplier with the depth of expertise from a range of specialist best of breed service providers.

•  Ultimately the best model depends on:

•  the strategic requirements of the marketers and the brand,

•  the geographic scope of the operation, and

•  the resources and skills required

•  Following are some of the structures currently being used by a range of marketers and their organisations.


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Single Full Service Agency How it works •  Marketer selects a single service provider to

deliver all of their marketing communications requirements.

Strengths •  Simple to manage and align. •  Heralds back to the “Golden Age” of

advertising depicted in “Mad Men”. Weaknesses •  Can be difficult to find a single company that

delivers all of the skills to acceptable level of capability and expertise.

•  Media buying is often more cost effective when handled through a larger centralised supplier.

Best for •  Marketers with highly focused requirements. •  Where media buying efficiency is not a

significant issue.


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Holding Company Model How it works •  One of the many holding companies, either

global or regional, provides from within their portfolio of companies a customised package to fulfil the marketers needs.

Strengths •  Holding company often provides

management co-ordination of these services. •  Can achieve some streamlining of shared

back end overheads and resources. Weaknesses •  Often difficult to find best of breed in all

disciplines within the holding company. •  Often each company will work to separate

P&Ls but disputes usually managed by Holding Company.

Best for •  Marketers with aligned brand strategy with

diverse service requirements across multiple markets.


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Customised Agency How it works •  Holding Company access prime resources

across multiple companies to create a new virtual or real service provider entity.

•  Can operate on a local, regional or global basis. Strengths •  Single point of contact, single management,

single P&L. •  Customised to the specific needs of the

marketer, including the choice of key staff. Weaknesses •  Usual issues associated with establishing any

new business in regards to processes, relationships, etc.

•  Can be problematic unbundling if it is unsuccessful.

Best for •  Major marketers with clearly defined strategies

looking to outsource management of implementation.


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Lead Agency How it works •  Key strategic service provider takes

responsibility for managing and co-ordinating all service providers by brand.

•  Can also be structured with all service providers from one holding company.

Strengths •  Effectively outsources the management role

to a key supplier. •  Places focus on and guarantees influence for

key strategic supplier. Weaknesses •  Requires a high level of trust and open and

regular feedback. •  Can lead to the lead agency becoming a

gate-keeper rather than a facilitator. Best for •  Long term established relationships with high

level of trust or where the suppliers are aligned within a common company structure.


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The Strategic Group How it works •  Representatives from the core strategic

suppliers form a management group to co-ordinate strategy development and implementation.


Strengths •  Collaboration ensures elimination of

duplicated efforts. •  Obtains the best outputs from all suppliers. Weaknesses •  Can require significant time and resources to

establish. •  Needs some management to ensure no one

supplier is dominating. Best for •  Marketers with complex or difficult segments

requiring co-ordinated specialist multichannel strategy and implementation.


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Strategic Tier How it works •  Takes a holistic approach to supplier portfolio,

providing access to the range of services required in a more manageable, structured approach.


Strengths •  Recognises the roles and relative importance

the different suppliers provide in brand strategy and management.

•  Allows best of breed / best fit to be selected and integrated.

Weaknesses •  Still requires marketers to co-ordinate and

manage suppliers but in a more structured and strategic way than the best of breed.

Best for •  Marketers and brands requiring a range of

specialist skills in a co-ordinated approach to the market.


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Best Of Breed How it works

•  Marketer identifies and selects the suppliers required to deliver the capabilities and services required from the total supplier population.

Strengths

•  Ability to choose the best fit service provider in each category.

Weaknesses

•  Requires significant internal resources to manage each supplier relationship and to foster and develop collaborative environment.

Best for

•  Marketers with specific specialist needs, highly focused but challenging strategies.

•  Organisations with suitable level and type of internal resources for supplier management.


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Comparison of models

Complexity Simplicity

Flexibility

Ease of management

Best of breed

Strategic Tier

Strategic Group

Lead Agency

Holding Company

Customised Agency

Full Service


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What is the best model for you? •  There are a number of steps to

determining the right range of suppliers and the best structure for managing the same.

•  This is the TrinityP3 Strategic Supplier Alignment: 1.  Define and map the current supplier

landscape – this should be as wide and encompassing as possible including supplier categories and geographies.

2.  Undertake one-on-one interviews with the current brand/marketing teams to determine immediate and future requirements, and current supplier performance against their requirements.

3.  Undertake one-on-one interviews with the suppliers to determine their capabilities supported by case studies and testimonials from other agency clients.

•  From this information you can develop a Requirements/Capabilities Matrix from which you can determine: •  The shortfalls or gaps in the current

supplier capabilities that require new or different suppliers.

•  Duplications in the current supplier services which can be rationalised.

•  Potential structural models are compared against: •  The Requirements/Capabilities

Matrix. •  The future strategic requirements of

the brand. •  The resources available within the

marketing team and organisation. •  With the Requirements/Capabilities

Matrix and a preferred supplier structural model, an implementation plan is developed for transforming from the current to future state.


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For more information please contact

TrinityP3 Pty Ltd Sydney

+612 8399 0922 Melbourne

+613 9682 6800 Hong Kong

+852 3589 3095 Singapore

+65 6884 9149

[email protected] www.trinityp3.com

TrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing

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TrinityP3 Agency Roster Structures