Agencies have colorful stories about working with promoter-run Indian companies. The proximity to owners and their involvement is a double-edged sword. If the “maalik” likes an idea, it progresses at light-speed. But it can also change on whims and Vastu. Logos have been overhauled overnight because the colour wasn’t auspicious enough. Dates of launches are decided based on inputs from priests and not product teams. Scripts are changed and entire campaigns are designed to include owners in ad campaigns. A stray comment by a guest at a party can prompt an owner to ring his star agency head at night to come up with a commercial “big enough” to impress his friends.
So, as an advertising agency based out of India, who would you prefer to work with – a local, homegrown, promoter-run client or a multinational firm? Who allows for more creative freedom? Who has a better remuneration structure? Who gives you honest feedback? Who makes the pitch process easier?
These are some of the questions that advertising agencies are most often faced with, especially at a time when the influx of MNCs is at par with the growth of new-age homegrown companies in the country.
The essential difference is that promoters have more skin in the game and are willing to take risks while multinational clients have more processes and systems in place and are more professionally run, says Nisha Singhania, CEO & Managing Partner of Infectious Advertising.
Although, at the end of the day both clients are looking for solutions that will solve their business problems and then fame and fortune.
Other fundamental differences include MNC brands tending to be a little more rigid and stricter with their mandates and guidelines. They also tend to stick with the tried and tested ideas. Whereas Indian brands have openness to daring ideas.
“I feel Indian brands are willing to take much bigger risks and more likely to put their faith behind “keeda ideas.” In comparison, international brands have a lot more stakeholders to convince and have an international legacy to protect, so they are often very skittish about rocking the boat – nothing controversial, nothing remotely political and definitely nothing that we think is cool but could eventually backfire on them as a PR nightmare,” shares Jackie J. Thakkar, Creative Director.
But homegrown brands can sometimes come in with a less collaborative attitude; they want to meddle in the creative process and have a mentality of “we know best what works for our brand.”
“It’s almost a level of entitlement they feel over their creative output which can sometimes bog down creative agencies from doing their best work. Also, they can be unreasonably demanding, can sometimes present unreasonable deadlines or give erratic feedback. In contrast, international brands are a lot more respectful towards creatives and understand the time and effort it takes to build compelling creatives. They might not agree with all the ideas, but they never try to step on our toes and undermine our skill set,” he highlights.
MNCs, in short, expect a certain quality of work and discipline from their partners because they themselves uphold those standards.
Being hands-on makes agency feel less of a vendor
Sharing his experience, Chetan Asher, Founder & CEO, Tonic Worldwide, says that one significant benefit that comes from having access to the promoter is the understanding of the overall brand’s vision and their business metrics and processes. “We often encounter passionate promoters who take an active role in the brand-building process and campaign development, depending on the life stage of their brand,” he said.
A few years ago, Tonic Worldwide managed an ice cream brand account, whose promoter encouraged the agency to visit their factory floor for research even before it made the pitch presentation— showcasing his openness to the agency’s suggestions on new flavour recommendations and other inputs to strengthen the brand.
Hence, promoter-led firms offer the opportunity to understand their business more deeply and have a relatively agile decision-making process.
The direct access to the founder/owner, makes the agency feel more involved (not a vendor) and charged up, add Raman R.S. Minhas, Chief Creative Officer, IdeateLab. On the other hand, it can become a bit of an interference and added pressure, when not done well.
Emphasising a similar point of view, Sarvesh Raikar Regional Creative Officer MullenLowe Lintas Group, notes that the promoter’s own personality and appetite for brand-building has a huge influence on the relationship.
“Some will appoint a CMO and let him or her take most decisions. But some will prefer to don the CMO hat themselves and be personally involved in all marketing-related decisions,” he highlights.
So, if you have an idea and the promoter likes it – the turnaround of that idea will always be faster.
In the past, while working on brands like Quikr, Raikar shared his experience that there have been times when ideas went from paper to broadcast in 4 days.
Nagessh Pannaswami, Founder & Director, Curry-Nation, highlights that in most MNC’s given the process and research, from inception of a project to culmination could be anywhere from 6 to 8 months. With promoters and founders, the task is over in less than 60 days. “Decisions and turnarounds are quick with promoter-led companies and relationships with them are usually long-term relationships,” he shares.
At the same time, the advantage of working with MNC is the fact that it accelerates your learning curve. “You get familiar with global best practices faster and stay on top of your trends,” Raikar adds.
When a multinational backs an idea they make it big, and the scale often transcends one country or market. For instance, The H for Handwashing campaign for Lifebuoy was implemented across 30+ countries, and governments of 7 countries got involved— so the impact of such campaigns is huge.
Overall, the key differences lie in the company culture, decision-making processes, and the scale of operations between homegrown promoter-run firms and multinational clients.
22feet Tribal Worldwide works with both sorts— from TTK Prestige, Dhara to Mars Pet Care, PGI and Volkswagen.
Shikha Davessar, EVP and Head of Client Business, 22feet Tribal Worldwide, says when working with homegrown promoter-run firms, one may experience a more personalised approach to business. These companies often have a strong sense of tradition and may prioritise relationships and trust.
For instance, brands like TTK Prestige have strong opinions on maintaining the brand’s heritage and incorporating local elements into campaigns.
Multinational clients on the other hand often have extensive global networks, resources and expertise, which can provide access to larger markets and cutting-edge technologies.
The pitch and remuneration
In terms of pitching, the key difference between both is that in promotor-led firms, the promoter naturally has the final say. Whereas in an MNC, it can be a whole team working together on the approval.
Minhas of IdeateLab shares that during pitches, there’s an over-tendency to woo the owner/promoter. In MNCs, while there is a final decision-maker, the team’s collective view comes into play.
Sharing his experience when pitching for a homegrown client, he says, “We were frantically looking for someone in the team who was comfortable working at night because the owner apparently, was an insomniac, who would only meet the agencies at night.”
Once a promoter-led company shortlists or buys into an idea, Pannaswami, shares that they get the entire sales, R&D, and board members into a common room and get the agency to present to the larger gathering. So that there is a complete buy-in and they all collectively back the idea post the launch.
Also, many a time, the idea that is pitched is the idea that gets executed and goes into the market. Whereas in the case of an MNC, the actual work that gets out is completely different and far removed from what you pitched for, he adds.
Davessar adds that agencies working with promoter-run companies may find themselves in closer collaboration with key decision-makers. However, agencies may also face challenges if the key stakeholders have strong preferences or are deeply involved in day-to-day operations.
In terms of remuneration for working with homegrown brands may include performance-based incentives tied to the success and growth of the brand. They offer more flexibility for negotiation, as they may be open to customised arrangements based on the specific needs and resources of the brand, she notes.
On the other hand, MNCs have standardised compensation packages that align with their global guidelines and policies.
In fact, in some case, homegrown brands pay even more than international brands, highlights Thakkar.