http://www.trinityp3.com Marketers are confronted with trying to procure an increasingly diverse range of suppliers they are faced with a choice. At one end is the convenience of a one-stop-shop or full service supplier and at the other is juggling a roster of best of bred suppliers. In between is a varied range of options with various strengths and weaknesses. Which agency roster structure is the best? It depends on your strategic marketing requirements. Many retailers are happy to compromise quality in no core skills and capabilities for the simplicity and ease, not to mention the economies of scale, of a full service or single supplier. But more strategically driven marketers find themselves with multiple agencies on their roster, all providing strategic input into the marketing strategy. The issue then is how to achieve strategic business alignment across all of these suppliers. This presentation provides you with the range of structures and models available and their strengths, weaknesses and considerations.

1. Agency Supplier
Roster / Portfolio Structures
TrinityP3
October, 2010
CONFIDENTIAL
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2. 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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3. Service providers come in all types
• Creative Agencies • Strategy Consultancy • Print Production
• Advertising/Creative • (B2B B2C) • Word of Mouth
• Brand Consultancy • Media Analysis • Connection Planning
• Strategy Consultancy • Database Design • Custom Publishing
• Channel Planning • Database Management • Sales Promotion
• Retail Specialist • Direct Response Management • Experiential Marketing
• Media Planning • List Creation Sourcing • Sampling
• Media Buying • Point of Sale • Entertainment
• Media Strategy • Promotions and Premiums • Event Marketing
• Channel Planning • Government Relations • Point of Sale
• Digital Media Planning • Media Relations • Shopper Marketing
Optimization • Internal Communications • Social Marketing
• Digital/Interactive Marketing • Speechwriting • Sports Marketing
• Web Development • Corporate Social • Sponsorship
• Search Responsibility • Telemarketing
• Mobile • Strategic Counsel • Word of Mouth
• Digital Creative • Crisis Issue Management • Omnibus Research
• Social media • Package Design • Qualitative Research
• Apps development • Branding and Identity • Quantitative Research
• Platform development • Signage • Online Research
• Email Marketing • Annual Report Print Design • Concept Testing
• Customer Relationship • Electronic production • Brand Tracking….
Management • Video Production
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4. 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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5. 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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6. 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
PLs 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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7. 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 PL.
• 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. 7
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8. 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. 8
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9. The Strategic Group
How it works
• Representatives from the core strategic
suppliers form a management group to co-
ordinate strategy development and
implementation.
• Can also be structured with all service
providers from one holding company.
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. 9
marketing management consultants

10. 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.
• Can also be structured with all service
providers from one holding company.
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. 10
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11. 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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12. Comparison of models
Ease of management
Full Service
Customised Agency
Complexity Simplicity
Lead Agency
Strategic Group
Holding Company
Strategic Tier
Best of breed Flexibility
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13. What is the best model for you?
• There are a number of steps to • From this information you can develop a
determining the right range of suppliers Requirements/Capabilities Matrix from
and the best structure for managing the which you can determine:
same. • The shortfalls or gaps in the current
• This is the TrinityP3 Strategic Supplier supplier capabilities that require new
Alignment: or different suppliers.
1. Define and map the current supplier • Duplications in the current supplier
landscape – this should be as wide services which can be rationalised.
and encompassing as possible • Potential structural models are compared
including supplier categories and against:
geographies.
• The Requirements/Capabilities
2. Undertake one-on-one interviews with Matrix.
the current brand/marketing teams to
determine immediate and future • The future strategic requirements of
requirements, and current supplier the brand.
performance against their • The resources available within the
requirements. marketing team and organisation.
3. Undertake one-on-one interviews with • With the Requirements/Capabilities
the suppliers to determine their Matrix and a preferred supplier structural
capabilities supported by case model, an implementation plan is
studies and testimonials from other developed for transforming from the
agency clients. current to future state.
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14. 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
people@trinityp3.com
www.trinityp3.com
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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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