ARGENTINA 2017 | Promo vs. brand building
BOGOFs; 40% off; on the second product; CRM; buy three get four; instant 15% off; 20% off in coupons for the next purchase; bank promotions; black weekends.... This is how our market has been operating over the last few years and particularly in 2016.
VP – Managing Partner
Mindshare World Martin.Lammardo@mindshareworld.com
Martin began his career 20 years ago, in the JWT media department and then moved to work abroad in other companies, predominantly at MTV LatAm based in Miami.
After a few years, he returned to Argentina, joining Mindshare in 2010.
As a VP Managing Partner, Martin focuses on client service and new business. Since 2014 he has also been the head of the m/SIX division in Argentina.
As a result, it ́s very dif cult – almost impossible to be honest – to convince a client that they should be allocating budget, or at least a share, to building their own brand. Yes, the brand – which sometimes helps more than a particular promotion to secure the purchase. These
days, it ́s very tough to tell the difference between all the retail offers. There is no distinguishing feature in the promotions.
The point is that the primary KPI in each and every retail company these days is to sell. Just that. To sell as much as they can, but spend as little as they can. 100% sales driven. So, in this environment, we suggest working in a more ef cient way, tracking and measuring as much as we can, so to create a mix between brand and sales/performance.
A LIGHT AT THE END OF THE TUNNEL
We believe that, despite the country ́s current economic scenario (where the economy has not taken off yet) clients could create an interesting and healthy mix between promotion and brand building. A mix whereby they can focus on sales but at the same time contribute little by little to strengthening the brand. Why do we think that it should be this way? Because in this promo situation, as we have already said, there is no big difference between one supermarket promo vs. the other; the consumer ́s decision depends on location, loyalty and differentiated bene ts that the retail can offer.
To unlock this black box, we need to show our clients we have the right team supported by the best tools (or the skills to develop them). With regard to the people, we believe that a balanced team should include Communication Planning; Trading; Entertainment; Content +; Exchange, all under the digital cloud and care of the right Account Director.
With regard to the tools, as an agency that knows not only about media but also about the clients ́ businesses, we should be able to choose the instruments that will contribute to making a signi cant difference in our clients ́ communication and KPI ́s. Always taking into account that each client is totally different from the next and we need to work uniquely for each one to meet the challenge; becoming the trusted advisors for them based on results.
IN THE TOOLBOX
So, what tools can we use to establish a solid multimedia strategy based on reaching the maximum coverage for each media, focused on the target and where they are?
Programmatic + Dynamic Creative Optimization (DCO) or econometric modelling are two examples of these tools. They let us know what our consumers want and where they are, and they take us as close as possible to them. These tools are backed up by studies that support them, and that give us the con dence that every step we take is worthwhile.
This strategy enables us to measure, ratify or rectify, on a daily basis. In turn, this enables us to leverage results with less investment, while driving a bit of budget towards brand building, without neglecting the promotional force.
All in all, as an agency we believe that if we do the right thing and use all company resources to the full (engaging the WPP network) our clients will increase sales. Not only by being ef cient, but also by having a strong and well positioned brand.