Time for agencies to take retail advertising seriously  ( August '27,2001, BS)

More often than not, a large advertising agency will grab a small retail advertising account for the creative freedom it offers and the opportunity to win a few awards in the process. It is this persistence of a personal agenda at their expense that often makes retailers wary of advertising agencies. And when the agency throws in a bit of the “I’m-doing-you-a-favour-by-handling-your-brand” attitude, it makes matters worse.

It is true that very few retailers understand advertising and their approach towards the subject is more experimental in nature than planned. (This is not a generalisation in the Indian context, it is as much a reality in more evolved retail markets in developed nations). While some consider advertising to be a wasteful expenditure, there are others who look at it as a necessary evil and approach it rather tentatively.

While 99 per cent of the retailers would fit into one of the above moulds, there is that one per cent which catches the bull by its horns and approaches advertising with a rare passion. In the process, they create winning brands that stand head and shoulders above the rest. Often, such brands are created by an agency-retailer team working closely to understand the finer nuances of each other’s businesses, and converting the learnings into effective business solutions.

Here are a few areas where the retailer and the agency should work in consonance, to ensure a healthy and effective brand building process:

1. While retailers must understand that every communication cannot possibly be directed towards increasing sales, the agency must, on its own, address the retailer’s concern on this front. It must constantly prove its honesty, integrity and commitment towards ultimately increasing sales and improving bottomlines; and a firm time frame to this effect is a must.

2. The retailer must realise that advertising is a long-term investment. Therefore, a firm commitment is essential. The agency should, on the other hand, realise that investments towards brand building should ensure quick and effective results so that in the long run advertising becomes self-sustaining and earns for itself.

3. The retailer must judge the effectiveness of advertising from its ability to draw customers into the store and not by a direct effect on sales.

There could be other factors such as the store layout, customer service, products, pricing, etc. affecting sales. If increased traffic does not convert to sales, the agency must quickly work on improving those areas.

4. The retailer being in direct contact with his customers should constantly audit the effectiveness of his campaign. What media do his customers respond to etc. and the agency must respond to and implement these learnings.

5. Both the retailer and the agency must make a conscious effort to operate within a framework. Advertising should be planned in advance and adhered to with corresponding budgets to support each activity. Plan for a year, break it down by the quarter and review it every month. Unplanned spends do not help incorporate savings.

6. The retailer should ensure that goals are realistic and the agency must ensure that the means to achieve the goals are as realistic. If you want to increase your turnover by 100 per cent next year, increase your advertising spend levels proportionately.

7. Last but not the least, I think it is important that the client ought to push the agency to do award-winning stuff, with the agency ensuring that it not only wins awards, but wins him a fresh set of customers as well. This way both would be happier in each other’s company.

With the impending boom in the retail more and more retailers will need professional help in communication solutions for their brands. The advertising industry will also look at the sector as a major source of potential business. So the earlier they manage to reposition themselves in each other’s minds and improve their compatibility, the better it is for the overall growth of the segment.