Figure 1 of Economic

External Environment

ECONOMIC

First of all, key trends in the economic environment directly impact on Cossette and its industry:

· The economic slowdown does not help marketing firms. In fact, the automatic thought from managers in such context is to cut in marketing (FindLaw Marketing, [Online], 2009). However, according to companies like Cossette, they should not think that way and focus on taking care of loyal customers and find ways to attract new ones.

During this difficult period, final consumers may be affected by a decrease in the discretionary income, which slowdown general consumption and it is directly linked with the industry we are looking at. Data from the OCDE official website show that the public and the private consumption have clearly decreased.

Figure 1

Source: http://www.oecd.org/dataoecd/35/22/20326204.pdf

When Cossette lost exclusivity with Bell last April (after 26 years partnership), it really showed how mainly dependant Cossette was from their customers’ economic situations (Lemoine, [Online], 2008). After that, Cossette was forced to lay down many employees.

There are not only negative points for the industry, particularly in the province of Quebec. The ‘‘Rapport de Conjoncture 2008: Innovation et Mondialisation’’, released by the Conseil de la science et de la technologie in Quebec showed that generally, PME are good at developing new products and researching but suffer from a lack in marketing, which represents a huge opportunity for firms offering this strategic service like Cossette (Conseil de la science et de la technologie, 2008).

References

Conseil de la science et de la technologie. Rapport de conjoncture 2008 : Innovation et Mondialisation. Government of Quebec. 2008.

FindLaw Marketing. Attorneys Should Not Cut in Marketing Efforts in Economic Downturn. FindLaw Lawyers Marketing. 2009. Online. http://blog.lawyermarketing.com/blog/lawyer-marketing/0/0/attorneys-should-not-cut-marketing-efforts-during-economic-downturn. Consulted on March24th, 2009.

Lemoine, Dominique. Cossette perd son exclusivité avec Bell. LesAffaires.com.2008. Online. http://www.lesaffaires.com/article/0/medias-et-communication/2008-04-16/476041/cossette-perd-son-exclusivite-avec-bell.fr.html. Consulted on March 20th, 2009.

OCDE. Canada: Demand and Production. 2009. Online. http://www.oecd.org/country/0,3377,fr_33873108_33873277_1_1_1_1_1,00.html. Consulted on March 22th, 2009.

TECHNOLOGICAL

In this industry, the technical know how and technology platforms constantly evolve and it definitely lower entry barriers. Since communication tools multiply and technology and information are more accessible than ever, new and small competition arises. Here is a description of these improvements and how it affects this industry:

Web 2.0: Web 2.0 is the network as platform, spanning all connected devices; Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually-updated service that gets better the more people use it, consuming and remixing data from multiple sources, including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an architecture of participation, and going beyond the page metaphor of Web 1.0 to deliver rich user experiences. ( O’Reilly, [Online], 2007)

Web 3.0: This term is still really debated but refers to the next step of the web development. The main criteria to the 3.0 are the mobility, universality and the accessibility. The mobile element is the fact that the communication must fit everywhere such on different screens of cell phones or printers. Universality refers to a platform that is independent of every other technology and the accessibility is the access to an incredible quantity of data (Wikipedia, [Online], 2009). Mobile marketing can be included in Web 3.0. This trend changes the way marketing firms must perform and on which platform. It implies costs and training.

Graphics techniques: Softwares (Photshop, Illustrator, InDeisgn, Flash, etc) are always improving; launching new features and are becoming more user-friendly. Therefore, it allows new competitors to acquire and use the same tools than giants like Cossette, which was years ago internal forces for those firms.

Data sharing: Internet has allowed the whole planet to exchange information very easily. More specifically for marketing firms and their business customers, data transfer is now mainly web-based, which accelerates the business process and allow them to be geographically separated.

References

O’Reilly, Tim. What is Web 2.0: Design Patterns and Business Models for the Next Generation of Software. Communications & Strategies, No. 1, p. 17, First Quarter 2007. Online. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1008839. Consulted on March 22th, 2009.

Wikipedia. Web 3.0. 2009. Online. http://fr.wikipedia.org/wiki/Web_3.0. Consulted on March 23th, 2009.

POLITICAL-LEGAL

The political-legal aspects in the external environment that must be considered are mainly the consumer’s actions, organizations regulating communication and laws regarding advertising and solicitation.

CRTC Organization: Its mandate is to ensure that both the broadcasting and telecommunications systems serve the Canadian public. The CRTC uses the objectives in the Broadcasting Act and the Telecommunications Act to guide its policy decisions (CRTC, [Online], 2009). Consumers and marketing firms should always scan the new policies in order to work on legal projects.

Others organizations that supervise marketing activities are the Canadian Posting Association, the Interactive Advertising Bureau of Canada, Relational Marketing Association and some other more specific. The industry is then closely analyzed and firms like Cossette know that it might be costly to be illegal or controversial.

· Law modifications do not come only from the previous organizations but also from consumer pressures. Consumers’ Association of Canada is the more powerful force and its mission statement is ‘’to represent and articulate the best interests of Canadian consumers to all levels of government and to all sectors of society by continually earning recognition as the trusted voice of the consumer on a national basis’’ (CAC, [Online], 2009).

· An important law that recently emerged from the organizations and the consumers is the Do Not Call Law. It refers to list where people sign up to decrease the number of telemarketing calls and to maintain personal privacy (CRTC, [Online], 2009). If we relate it to Cossette, this legal modification affects Blitz (Data, direct and Promotion) because they offer telemarketing services.

References

CAC. Information Portal of Consumers’ Association of Canada. Online. http://www.consumer.ca/1480. Consulted on March 26th, 2009.

CRTC. About the CRTC. Canadian Radio-Television and Telecommunications Comission. Online. http://www.crtc.gc.ca/eng/backgrnd/brochures/b29903.htm. Consulted on March 27th.2009

GLOBAL

Nowadays, since organizations tend to globalize, marketing firms must also follow and develop knowledge on different markets. Depending of the strategy the company use (multi-domestic or global), they may select different marketing firms (McDonalds) to make sure local actions are pertinent or they may work with one principal agency. However, one thing is obvious: international competition is now an important challenge in the marketing industry.

SOCIAL:

In Canada, our population is older than ever. There are less people between 25 and 29 years old, then between 50 to 54 years old. This means that the marketing have to consider even more this public in their marketing campaign.

The population which had a university education is larger. There is an evident amelioration of university graduate student. This augmentation is important and seems to still progress. In 2006, 160 998 students in Canada had this level, compare to 134 037 in 2002. In fact, there is more Canadian with a university diploma that with a college diploma: 4 655 770 compare to 4 435 135. This statistic shows that the population is really educated.

The fact that the population has a better education brings more adequate employees for a firm as Cossette Communication, but also more competitions.

Finally, we have to consider the time pressure that changes our lifestyle. For example, the percentage of person watching television for pleasure is smaller than ever. The utilization of media is changing a lot, and marketing companies has to work with it. Using new technologies is important, but also axing the strategies in function of the population occupation is important too.

References:

Le marketing de la TPE/PME, http://www.vaninadelobelle.com/Le-marketing-de-la-TPE-PME_a16.html, consulted in march 31th 2009.

CULTURAL:

Changing the perception of a population is not simple. For many of us, marketing seems to be a way of selling things we don’t need or to embellish the reality. Effectively, marketing perception had suffered in the past year. The reality is that many people blame the marketing to make them buy even more, and this is why its image had suffered a lot. Any marketing consultant should think at this fact, and try to help the marketing image by offering the best product in all kind of categories.

Porter Model: 5 Forces

Porter Model: 5 Forces

POTENTIAL COMPETITION

Companies should never under estimate potential competition. For Cossette Communication Marketing it is the smallest firms. Presently, few little companies offer great services and are very specialized and unique. Those companies impressed by their creativity and the simplicity of their business. Right here in Quebec City, Cossette should look at all the different companies that start small and became quickly a real competition; O²Web, Cameleon, Fokus…

Fokus:
· «Fokus productions is a company based in Quebec city that specialize in video, prints and music»
· Clients : Duproprio, Radio Énergie, Rock Détente, Place Fleur de Lys, Red Bull, Chrysler…
O²Web:
· Specialize in Web site
· Clients : Société des Communicateurs de Québec (SOCOM), Delecta, LeBel Communication, Société du 400e de Québec…
Cameleon :
· Since 1995, it is specialize in Web, promotion, impression
· Journal Le Soleil, Groupe CMI, Aquarium du Québec, Banque Nationale du Canada, Biscuit Leclerc…

The difference between Cossette and his competition is for some of them the cost of the service. Cossette is a multinational company and is very expensive. They are not accessible for all kind of clients. They should be aware of the smallest competition that could be a great alternative for companies who doesn’t want to invest that much in the marketing service. Although, many companies love to create a close relation with their agency, so they would be inclined to work with a small firm with whom they could communicate easily. This is one of the reasons why a company as «Fokus», here in Quebec City works so well. This company offers a unique product and also a privileged communication with their customers, no more intermediaries.
Those are all the reasons why potential competitions are important to look at!



Sources:
http://fokusproductions.ca/fokus-en/company?set_language=en, consulted march 23th 2009.
http://www.o2websolutions.com/produit.htm#heading2, consulted march 23th 2009
http://www.cameleon.ca/compagnie.php, consulted march 23th 2009



CURRENT COMPETITION

Even though Cossette is the leader in Canada, his current competition is very impressive. Here are four of his competitors who also have important clients and a large market share. Take a look at those four:

· LG2: Hema-Québec, Hydro-Québec, Bell, Brunet, Canac-Marquis Grenier…
· Leo Burnette: Kellog’s, Visa, Samsung, Gain, Zellers…
· BBDO: Cascade, Pepsi, Procter & Gamble, Chrysler, Campbell, Mitsubishi…
· Bleu, Blanc, Rouge (Montréal): Vancouver 2010, Banque Laurentienne, Ville de Montréal, Toyota, La maison Simons…

The fact is that the loyalty is never as it was in the past. Now we can declare that the potential competitions are becoming a real competition. In this article we find out that the exclusive partnership between Cossette and Bell Canada was over: «There's plenty of uncertainty in the air at the Montreal offices of advertising and marketing agency Cossette Communication. Its largest customer is Bell Canada, with whom it has had a 26-year relationship. But Cossette has been reeling after Bell's recent decision to end their exclusive partnership. Both Bell and Cossette say they will continue to do business with each other, but just how much is unclear. The telecom company, which is about to be sold to a private-equity group, is now free to deal with any agency it wants.» Instead of an exclusive partnership with Cossette, Bell as use the services of different firms as LG2, Leo Burnette and Zulu Alpha Kilo.

On the web site of the association of publicity agency, we can have a better idea of how many competition Cossette’s got: http://www.aapq.ca/.

Sources:
HADEKEL, Peter, Cossette reeling after loss of exclusive partnership with Bell Canada, http://www2.canada.com/montrealgazette/columnists/story.html?id=75452750-4550-4e68-b1a6-39c2c5cb1d86, consulted march 22nd 2009.

SUBSTITUTES

Using a complete and known firm as Cossette Communication is not an obligation for any company that needs a marketing plan. Effectively, businesses could find many substitutes as a smaller firm that is specializes in some particular domain. Little companies as the one propose before could be a great substitute.

Hiring an employee to do the work directly in the enterprise is another choice. Sometimes, it is cheaper to hire a senior that will be doing the marketing job all year long. You can also hire a marketing consultant that will help you for a project of a limited time.

Fortunately, many companies realize now that marketing needs an expertise, then they won’t try to do the work by themselves. «Le marché demande une spécialisation de plus en plus forte et les chefs d’entreprise admettent que le marketing est affaire d’experts et qu’ils ne peuvent pas être experts partout»

Sources :
Le marketing de la TPE/PME, http://www.vaninadelobelle.com/Le-marketing-de-la-TPE-PME_a16.html, consulted march 31th 2009.

SUPPLIERS POWER

First of all, we got to ask ourselves who are Cossette’s suppliers. There are multiple categories and within each one, there are numerous suppliers, which explain a low power from these ones. For example, DGEQ (media planification Cossette division) has to obtain online space for advertising. So, it exists many online intermediaries that match buyers and vendors sush as Double Click or TVA . Also, a simple printed advertising can be printed in many places. Of course, they have in certain situations some exclusive contracts to obtain discounts. However, Cossette’s renown allows them to negotiate for better prices with suppliers and since each one would like to have this firm as a regular client, these suppliers must lower prices but give the optimal quality. Therefore, the switching cost is very low for Cossette.

BUYERS POWER

If we look at Cossette in a national or even global perspective, we realise that the buyers have a lot of power because this type of client has importance (since it is national or global) and there are numerous high-reputation agencies available for them. The business process used when a client such as the Government or McDonalds for example want to develop an advertising campaign is that all agencies are briefed together at the same time and have one week (in general) to prepare a campaign overview pitch. According to internal criteria, the client selects this agency that will be in charge of the next campaign. Therefore, we can say that at the national and international scale, buyers have high power.

As for the suppliers power in a more local point of view (ex: Quebec city), the buyers power is not so high. In fact, Cossette notoriety is very important and business clients WANT their services because they associate their work to quality and success. Prices are higher than most of the local competition. Moreover, Cossette offer a complete service (interactive, strategic, direct, b2b), which is very important for centralized firms that outsource marketing function. Of course, this type of client (A) has enough resources to afford the services with Cossette. Even if niche competition (ex: interactive marketing firm) charges less than Cossette, the switching cost to outsource every service becomes bigger than the complete service of Cossette, which represents a competitive advantage for them.

Micro-macro Environment

In this table (you must click on it to enlarge), we did produce the SWOT analysis according to our research so far. Of course, each time we will learn a fact that affects their environment, we will either post it as a new article or a commentary to the present one. Here are some facts about the advertising industry:

• The global advertising market represented 70,7 billions in 2006
  American market = 57,6 billions
  
• Growth rate around 5.6%


• Rapidly increasing advertising domains: automobile and retailing


• Local competition: Mac Laren McCannBBDO
  

Sources:

-http://www.economie-numerique.com/divers/lindustrie-de-la-publicite/

-http://www.zdnet.fr/actualites/Internet/0,39020774,39369540,00.htm

-adage.com

-http://www.emarketer.com

Mission Statement

Group Cossette Communication is located in Quebec city, but also in Montreal, Toronto, Vancouver, Halifax, New York, Los Angeles, Irvine, London, Moscow and Shanghai. They employed approximately 1 650 persons.

Mission: Our passion is to create a spectacular product that contributes as much to the communication success as to the business success of our clients.

Vision: We want to be a successful, international recognized communications company with a presence in many countries, that is admired for it's entrepreneurial culture, it's spectacular product and it's ability as a «Best of breed» community to work convergently.

«Standing outside the box»
«Standing up and standing out»
«We are a community of communities, working globally, one-to-one»
«We bring it all together»

Clients

Here's some of the major clients of Cossette:

Rio Tinto Alcan, Bell, Samsung, McDonald's, Mentos, Pampers and Unicef, Nike, Guitar Hero, Sony Ericsson, BMO Bank of Montreal, Future Shop, Home Depot, Molson and more...

Introduction

Welcome to our brand new blog!!!

In this blog, we will discuss on Cossette Communications. First of all, we will explain our interest toward this organization. It did start in Quebec City and became one of the top-marketing companies in the world. Also, we both think that they made their success on creativity, open-mindedness and respect. Their internal structure (made of many departments and its coordination) is very interesting to look at. 

Each week, we will be posting an article on Cossette, starting from the experience we had with 

this company, to the overview of the company (beliefs, mission, internal/external, works, 

market) and the analyze of the firm as an employer (interviews, articles, etc). We can refer this blog as a web systematic intelligence.        

Enjoy your reading!