The critical problem of the agency involves a very important decision of whether to expand or continue the way it is for the agency. Grabbing a large portfolio would lead to expansion and better avenues of growth but it comes with the risks and the costs. Maintaining the status quo would be a less risky solution but not getting any return in the long run.
Firstly, In case if the Yadana account doesn’t work well it would have to reducing the manpower hired for the account will damage the agency’s image. Secondly, determining the medium of advertising seems to be a problem, ignoring television would be ignoring the urban and metro market wherein radio and print would require a different skill set for a strong customer base to create. Thirdly, the customer although aware of the market is brand loyal and needs to be educated first. Fourthly, as the market seems to have shrunken it would actually be an opportunity in disguise. Very few players would always give a chance to grab a very large share of the market.
1. The investments would again run neck to neck with operating cost versus marketing costs. If the overall market is gloomy even if the most aggressive marketing techniques are implemented the results remain uncertain.
3. A customer survey and feedback would give a clear idea to the agency regarding the customer expectations. It would also give an opportunity to review its own strengths and weaknesses which is necessary.
Advertising seems to be a very volatile business that fluctuates along with the markets and economic conditions. But if all the parameters of managing a business are to be applied then any business after doing an accurate assessment of its own strengths and weaknesses should go ahead and convert market threats into opportunities. Economic downturn is not a bane but certainly can be blessing in disguise. There are some changes which are forced by the environmental factors on the organization, but organizations who