BUILT TO SERVE: THE ART OF STRATEGIC SERVICES OF AN INDONESIAN AD AGENCY DWI SAPTA
Entering the third millennium the landscape of advertising industry was changing rapidly. Consumer fragmentation and media proliferation inline with the development of information technology had been changed the meaning of advertising. Consumers were changed, and it was not an easy job to persuade them to buy only with the help of advertising. The traditional 15 percent media commission was gone when the multinationals media specialist only ask for one to four percent. The multinationals ad agencies, labeled as Brand or Creative Agency, now working for their clients based on retainer or project fee. This condition was brought many difficulties to Indonesia ad agencies that operating as a full services agency with the 15 percent media commission model. As one of the Indonesian ad agency, Dwi Sapta must smartly developing and delivery its services to keep their clients happy with them.
Dwi Sapta Integrated Marketing Communications was started with a photography studio in 1981. From the beginning, the founder Aloysius Adji Watono showed his responsibility for the products he delivered. He chooses Porter’s low cost focus strategy that means Dwi Sapta must deliver services with a competitive price bracket, and focus on a specific group of customers. Dwi Sapta will only produce advertising that will bring success to the client’s products. So the ads will always start from the marketing objective of the clients and the consumer insight about the products.
Dwi Sapta was growing with its local clients that much smaller compare to big budget clients like Unilever, Toyota, or Nestle. They had believed in Dwi Sapta because they were too hesitant to go to the big agencies. Psychologically, they had feel convenience to deal with small agency that will charge them lower compare to the big guys. They also think that small agency will give them more attention, understanding, and the most important one, have the same level of aspiration.
The 1998 reform brought the multinationals ad agencies to the surface and they took off their local name. In 1997, just days before the crisis erupted, Chairman of WPP Martin Sorrel bought AdForce/JWT and solely changed it to JWT Indonesia. Then almost all of the big guys from Madison Avenue were boldly present in the country.
The reform also changed the consumer and media in Indonesia. Consumer has more freedom to follow their specific lifestyle. For instance, the tattoo or piercing that before was ethically forbidden now a lifestyle among many people, male or female.
To accommodate the variations of consumer needs and demands, new products and services keep coming. The same pattern was happened with media that will happy to serve a specific audience with specific products or services. With no obligation to have publishing permit, the proliferation of print media flourishes and gave more option for consumer to choose. Editorial content now open to all aspects, from news, lifestyle, sports, business, sex, to religion. Broadcast media also proliferated, with national TV station growth to 11 channels, and more than hundred local TVs. The same pattern also happens to radio.
Within this dynamic market, Dwi Sapta must strategically choose its direction to win the competition. The question is what kind of marketing strategy they must choose to win the battle?