PUBLICIS GROUPE 2009:
TOWARD A DIGITAL TRANSFORMATION
BY: GENERATION D
I. Executive Summary
Publicis Group has always been one of the leaders in the advertising and communications sector, they have managed to remain competitive by anticipating in the environmental changes and trends and by trying to transform every threat to an opportunity, nevertheless their mission is to remain “a world leader in sustainable value creation though imaginative ideas and connections.” Drastic changes in technology and economy happened the last decade, forced them to restructure their business model. The primary goal was to upgrade their digital skills to provide integrated services and solutions by using both new technologies and traditional media effectively and secondly, to expand their operations. Growth was managed by acquiring external small agencies throughout the world in order to create a global network, while they used Digitas contracted in a deal as the vehicle for the transformation and growth strategy into the digital realm.
Many challenge arose, since an ‘’empire’’ of agencies were proven difficult to preserve. Managing corporate culture of the newly acquired business may proven to be the most difficult task and result in a failure of even the most well devised strategy and plan. The success of the whole project relied mostly in the cooperation of the units and the management team spirit. So far, Levy was driving every single merge and strategy of the company and had created a sense of family between the sister companies and employees. The leadership role had now to shift, as the Vivaki project should play this role in the future. After careful evaluations, the new project had thought to bring potentials to understake such a task and role in this timely consideration. However, there are still major risk indicators for afore mentioned strategies.
The main problem still persisted in keeping up with the role of being a leader in the marketing world, they had to maintain this status by performing more effectively in the digital world. Publicis Groupe has been keeping up by acquiring a large amount of agencies but this only increases their customer base instead of growing it. Also, because of the recession, it is highly possible that the demand for marketing and communications will decline especially when marketing is usually the first department to be cut when funds are low. Therefore, it is important to achieve high marketing results with the lowest amount of funds.
Considering the value/time ratio, we came down to offer three different alternatives that will help Publicis Group maintain its competitive advantage in the future. Our first alternative is to merge and integrate all Marketing & Communications business units. This strategy consists on investing time and effort rearranging marketing strategies and efforts after merging with the newly acquired companies in order to overcome the period time where many companies would stop investing on advertisement. Under this point of view, PG would maximize their profit and ROi by strengthening their marketing departments and getting more profit out of their invested money. Its known the world over that digital marketing cannot work on its own. It needs to be integrated with the other marketing channels in order to give one powerful and consistent message. So our strategy is based on enhancing our digital marketing department.
Another alternative would be to have another digital group work with Publicis’ business units. While the other businesses stay independent, Publics group will be able to continue their project with VivaKi yet still have a place to go when they need digital work done. The digital network it creates will become a tool that can be accessed at anytime needed. This strategy will also help keep boundaries within the already existing groups. By allowing each group to maintain their project will show...