Hendersonbas Case Study

Topics: Advertising, Marketing, Advertising agency Pages: 17 (4381 words) Published: January 3, 2011
henderson bas

Group D
July 23, 2010

Word Count: 2625 (excluding tables)

Table of Contents

1.Executive Summary3
2.Problem Statement4
3.Company Objectives4
4.Company Background4
5.1. Market Analysis4
5.2.Market Analysis5
5.3.Competitive Analysis8
5.4.Financial Analysis9
6.Key Factors10
6.1Key Opportunities10
6.2.Key Success Factors10
6.3.Key Uncertainties10
7.1.Provide a third proposal free of charge10
7.2.Menu Pricing11
7.2.Value Pricing11
9.Action Plan13
10.Contingency Plan13

1.Company Name - Executive Summary

henderson bas, one of Canada’s leading and most awarded interactive advertising agency has to make a decision on what pricing to charge for its third creative proposal to Halpernia. Louisa Morgan, director of client services sees Halpernia as a potential large client and wants to maintain a good relationship with them but still has to find a way to balance the organization’s profitability and future potential revenues along with the company’s objectives and goals.

The following pricing models have been identified for the current situation:

1.Provide a third proposal free of charge
2.Menu Pricing
3.Value Model

In the short term we recommend that henderson bas use a value model with one free creative proposal and Morgan should inform Halpernia of this pricing model and the reasoning behind it. This will ensure that costs are covered for any additional work required on the agreed project. In the long term, henderson bas should focus on the automotive and consumer packaged goods industries as identified in the segment analysis to grow the firm’s focus and market share. They also need to look at the pricing strategies and evaluate what competitors are doing and come up with a model that will help retain clients, provide excellent customer service and also remain profitable.

2.Problem Statement
Louisa Morgan, director of client services at henderson bas, one of Canada’s leading and most awarded interactive advertising agency, is trying to make a decision on the appropriate price to charge for the third creative proposal that has to be presented to Halpernia in five business days. Morgan wants to maintain a good relationship with Halpernia while still meet the organization’s financial goals. The relationship and her career depend on this decision. 3.Company Objectives

To provide creative, high quality and innovative interactive advertising solutions to customers •To maintain a high level of service and build a strong relationship with customers for long-term relationship •To remain profitable on all projects and meet financial goals 4.Company Background

Henderson Bas was founded by Dawna Henderson, the firm’s current chief executive officer in 1996. The company’s name was changed from Ninedots to henderson bas in 2004 for copyright issue and became a majority owned subsidiary by a publicly traded company, MDC Partners Inc.

Employing 65 professionals, henderson bas provides full online and interactive services, ranging from creative to advanced web & mobile technologies.

henderson bas is the only agency that develops marketing-driven strategy and creative. (http://preview.pr.com/company-profile/overview/50214). The company has been focusing most of its efforts on large companies; its client roster includes Coca-cola, eBay, Capital One, Molson, Mercedes-Benz, Nike, Tim Hortons, Federal Express, Nintendo and Discovery Channel to name a few.

Henderson bas has evolved to become Canada’s most awarded interactive agency with its strong market niche by aligning with large global brands and by offering a very high level of service. 5.Analysis

5.1. Market Analysis
Henderson bas is renowned for developing superior creative works and direct opportunities for...

References: 13. Perreault, McCarthy, Meredith, and Ricker, Basic Marketing: A Global Managerial Approach, 12th Canadian Edition (Toronto: McGraw-Hill Ryerson, 2007)
12. Appendices
For the year ended
December 31, 2008 % of sales For the year ended
December 31, 2007 % of sales $ Change
(in thousands) (in thousands)
Cost of services sold 392,145 67% 343,297 64% 48,848
Gross profit (Gross Margin 2008- 33%, 2007-36%) 192,503 33% 190,586 36% 1,917
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