Procurement - what is the true cost?
The need to tender and the growth of procurement within the public sector has been clear in recent years, and more than a little controversial. Chloe Malik, Director of Hot Marketing discusses the true cost of the process.
Over the last decade it has been increasingly difficult for smaller or specialist agencies to make any headway with the UK’s biggest brands, as the age of the super procurement team has arrived. Procurement divisions were set up initially to save money and streamline the supply chain but it could be argued this leaves the larger agencies on the roster with all the power, but what is the true cost? One size doesn’t fit all and there is certainly a place for smaller and specialist agencies to be in the mix. By not even considering them surely creativity, and in some instances effective solutions, are being missed.
In terms of ethnic marketing in the UK, it is a box most companies wish to tick, but do they really make it work? Big agencies don’t relish doing this kind of work as it is not deemed as lucrative as mainstream campaigns and can be a minefield. Lets face it, sometimes they don’t know where to start and why should they? Marketing to ethnic minorities in the UK does require specialist knowledge and an understanding of whom you’re talking to. Very few agencies know how to target this sector effectively. By not giving smaller specialist outfits the opportunity to work in this niche area, big brands are in effect losing money as each year the same bland and often culturally incorrect campaigns are trawled out. Think about the additional sales that could be enjoyed if the big brands actually got this right?
Most large brands seem to only look at communication with the UK’s ethnic minorities at times of key religious festivals. This is like only speaking to the indigenous population at Easter and Christmas and expecting this to result in increased sales throughout the year! If brands are to engage with the lucrative ethnic market, they need to get creative, understand the market and gain loyalty with sustained communication. I am sure that if they looked at specialist agencies they would actually save money and realise smarter and more effective communication. The procurement process it seems has tied the marketing teams’ hands!
The ethnic population is growing at a faster rate than the mainstream and if advertisers don’t look at what they are doing and whether it is as effective as it could be, they are missing a huge trick.
Chloe Malik is director of Hot Marketing, a full service agency specialising in reaching ethnic audiences in the UK