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.
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.
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.
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.
Aucun commentaire:
Enregistrer un commentaire