Production decoupling: What to Be Aware of
The next highest cost, after media, is advertising production, including TV, digital, social media, print and broadcast.Go to the article
So, this topic begs the question, who benefits from production decoupling? Many large brands, with global communication needs, have employed a production decoupling model. However, even smaller brands, which still face communication requirements, but cannot effectively manage and execute campaigns, also benefit from decoupling approaches.
”Whether it be consumer goods, financial services, accommodation, lifestyle or even insurance, big brands can stay on top of costs, brand consistency and speed to market on a global scale by separating ideation and production work.”
A shoe manufacturer and a computer parts maker paid unnecessary staff costs. Production departments with too much personnel and too little work, especially in more remote markets, can drive up budget spending up to 20-40% per year. By utilising an efficient centralised production and distribution approach only when needed, production departments can refrain from having any unneeded FTE hires and save on costs for clients. A global beverage chain spends millions of dollars on brand assets each year. However, it was common that only 10% of those materials were used outside the original market. A digital library and centralised production platform made all of the current materials available to every local market.
A global hotel brand, with properties in many different countries wanted to make sure that its brand communications were consistent throughout each local market. The company incorporated a centralised document platform in their marketing approach that allowed CXOs to oversee brand and image consistency, in terms of fonts, approved images, colours, illustrations and even localised sales collateral. Having assets available on-hand decreased the chance of local markets creating their own content reduced costs and created a more effective, faster campaign.
Speed to market
A global clothing retailer wanted to speed up the time it took its latest line to reach the market. The company cut its production and delivery in half, but ultimately, couldn’t produce collateral and distribute fast enough. The retailer employed a global services provider, which then developed a centralised production and delivery model in order to unify collateral and product delivery.
Whether it be consumer goods, financial services, accommodation, lifestyle or even insurance, big brands can stay on top of costs, brand consistency and speed to market on a global scale by separating ideation and production work. By implementing production decoupling methods, collaboration between clients and their agency of record or boutique shop is preserved, and all players benefit from a global delivery model that provides global distribution that is efficient and fast.
Some strategies to consider
Create production hubs in low-cost regions with specialised talent and the slightest cultural differences. Instead of implementing country specific strategies, utilising production hubs can benefit marketers with lower production budgets because planning and execution from production houses can be calculated more carefully and efficiently.
Utilise consultants, using a performance-based approach to establish a baseline against costs for production houses. They can, then, be compensated with a percentage of savings earned.
Find out how your brand can benefit from letting your creative agency develop only core ideas and moving the creative production to a specialist production house.Download your free guide