Is MindShare’s Model a Blueprint for the Future?

By Silk, Atifa

PERSPECTIVE Do we, at last, have a blueprint of the agency of the future? On the surface, MindShare’s reinvention as a full-service marketing business appears to suggest so. One P&L, media neutral ideas, content creation and ownership, and integration; the GroupM agency has done well to tick all the right boxes.

The ‘new’ MindShare will be dedicated to developing fully integrated business solutions. It will focus on the invention of intellectual property. Digital will not only play a central part, but will also be integrated into the very core of the organisation.

But, perhaps most significantly, the new MindShare will operate in an open source structure, bringing together creative and media through its ‘invention’ unit. This business division will be responsible for translating a client’s brief into a consumer engagement idea. It will orchestrate efforts for the effective development of creative, production and distribution.

Essentially, it will require MindShare to take the lead and pull together the creative network, direct marketing agency and other partners for the creative and delivery process.

Which may be easier said than done. Ending silos internally is one thing, but convincing overtly protective partner WPP agencies of a creative and media bundling may take some persuading.

But what will this ‘new’ MindShare look like in Asia? Outside of key markets,perhaps not all that different. Clients in China, India, Australia, Japan and other developed markets should see some benefits of the reoganisation fairly quickly. In Asia’s emerging markets, however, it’s likely to be a different story.

These young markets, such as Vietnam, are still finding their feet – often better known for their lack of transparency and odd pitch processes than savvy media planning. Given the severe talent shortage and development challenges, MindShare may have little choice but to disconnect from its global positioning and stick to a traditional media buying and selling offering, at least for the time being.

As Hong Kong’s first and only long-haul carrier grounds to a halt, many are questioning whether the glory days of no-frills airlines are numbered as pricing and financial pressures mount. In much of Asia, no-frills airlines have achieved rapid success. But if Oasis’ sad demise is anything to go by, low-cost carriers can expect more testing times head. With the rising cost of fuels and airport tax, these flights are becoming increasingly pricy to sustain. And passengers – having become accustomed to low-cost travel – are beginning to care more about how these airlines treat them.

Which isn’t entirely surprising when you consider that low-cost fares aren’t nearly as competitive as they used to be. Some of Oasis’ fares, for instance, were no different from those offered on the same routes by full-service airlines such as Cathay Pacific. Indeed, Oasis came under increased pressure from market saturation, with rival airlines offering discounts and muscling in on its low- cost market.

But, unlike its counterparts in the region, the Oasis brand never quite found its way. It did at least begin working to address its branding issues, albeit not quickly enough. As a low-cost airline it tried to move away from the ‘cattle transportation’ consign and serviced rather than processed passengers.

In a last-ditch effort to rebrand, the airline called a pitch to reverse consumer perceptions. But a HK$10 million (US$1.3 million) budget would hardly have delivered a miracle something Oasis was in dire need of by then. To make matters worse, a management restructuring that sought to bring greater focus on marketing and PR never quite materialised.

It’s an unfortunate end to an airline that had the potential to be one of Hong Kong’s more interesting brand stories.

Convincing overtly protective partner agencies of a creative and media bundling may take some persuading

atifa.silk@media.com.hk

Copyright Haymarket Business Publications Ltd. Apr 17, 2008

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