your pitch - communications · pdf filelist of agencies? do you ... required by the client,...

pitching

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page 1 Pitching Guide

Conducting a pitch for a new or existing brand gives you the opportunity to investigate the capabilities of a selection of Specialist Creative Agencies. Agencies all have their own strengths and the credential and pitch process provides the Agency the opportunity to demonstrate why they would be perfect for your business. The process, if managed correctly, will mean a significant investment of time, resources and money for both marketing Client and Agency and should not be entered into lightly.

This document has been prepared by the APMA with input from Marketers and The Communications Council to assist Marketers in conducting an effective, efficient and fair agency pitch that will achieve the result your brand deserves. As we work in an organic environment this will be a living document that we will continue to develop as the landscape changes. We hope you find it useful and look forward to any feedback.

page 2Pitching Guide

Once you are clear on the answers for these questions you will be able to prepare a succinct pitch brief, if there is any disagreement between the pitch team these issues need to be agreed prior to the pitch progressing.

There are some important considerations that must also be taken into account if you are going to pitch your business or a project.

If your current agency is doing a great job on existing brands, why not trust them with the launch of a new product or brand? Both parties have invested time in building a relationship, learning how to work with each other and the Agency has learnt your company and brand values. Could you capitalise on this to drive superior results?

If the relationship is experiencing difficulties could it be repaired? Time spent repairing a relationship can result in renewed commitment, respect and enthusiasm on both sides without the disruption of a pitch. If it’s a small project that could lead to a bigger piece of business, this should be made clear to all the participants. The whole process should be about honesty and transparency. All parties should be told the full reasons for the pitch, how the pitch is going to be run, the criteria for selection and any other factors that will influence the outcome.

Whywhat

and

topitchThe decision to pitch

can be made on a project or business

level, either way it is a serious decision. So before you engage in

an in-depth process we suggest asking yourself a few questions; Why

are you pitching?

What type of pitch are you going to

conduct? (Strategic, Creative, Business

Development)

How many agencies are you going to

invite to the pitch?

Is the project/business/brand of sufficient size

to pitch?

Do you have an incumbent agency or

list of agencies? Do you want the incumbent

agency to participate in the pitch?

What is your desired outcome from the pitch?

page 3 Pitching Guide

Pitching Guide

studyDiageo

Case

Pitching is a difficult decision and a difficult process and one that should only be undertaken if the incumbent partner has been truly given the chance to perform. Before thinking of a pitch process it is key that the incumbent has had the discussions that allow them to improve performance to a standard required by the client, this means clear KPI’s being set and working together to create brilliant work. If after this process the work doesn’t hit the standard and a pitch process is decided, it’s best to inform the incumbent in a timely manner.

The process itself requires support beyond just marketing function, be it internal procurement or external consultant as you need to explore the options broadly to determine what the market has to offer.

Our pitch rules

1. Start broad and map the market

2. Short list to a reasonable amount, relative to work load (Diageo standard 4-5 max)

3. Establish a consistent cross functional pitch team that attends all responses

4. Deliver a brief that doesn’t use internalised language that would provide incumbent with unfair advantage

5. Set clear evaluation criteria

6. Be open minded – the incumbent could still produce brilliance

7. Have one final decision maker

8. Be time bound – be very clear of the process and its timeline

9. Be ready to onboard quickly and effectively

Our agency philosophy – ‘Don’t pitch for work, pitch for an ongoing partnership’. Great work comes after both businesses understand each other’s needs and can create together. Diageo believes in creating a retained/contracted group of agencies that are specialist in their field and investing in them to create work at world class standards.

Finally, pitching is functionally and emotionally tough and you’ll often find they are unnecessary if you are investing in building great long term partnerships.

Pitching Guide

workTeam

A pitch is rarely a quick, simple process. It will need steering and a Pitch Champion will assist the process to run smoothly. You should appoint a Pitch Champion from your company as should each of the agencies. All communications should go through them to keep the lines of communication clear.

At your company, a representative of each stake holding division should be on the team and have input into the brief, the presentations and the final decision. Obviously, every effort should be made to keep this team intact and fully involved during the whole process. Clear responsibilities should be attributed to each pitch team member and communicated to the agencies, allowing them to engage the right people throughout the process.

If the team is committed to working together to deliver the agreed outcome the process will be as painless as possible and potentially even fun!

Pitching Guide

Selectingagenciesthe

topitch

At this point it’s vital that you send the selected agencies a confidentiality agreement and make sure that it’s signed and returned. You’re going to be sharing knowledge of your company and brand that needs to be protected. A standard Non Disclosure Agreement (NDA) is recommended.

Which agencies are you going to invite to pitch?To keep the process as tight as possible, a short-list of 3 to 4 Agencies provides variety while not overwhelming the team during the decision making process. The following criteria will assist in deciding who to invite.

•Whichagencieshaveproducedrecentcampaignsyou’venoticed and liked?

•Whichagencieshavetheexperienceyou’relookingfor?

•Whichagenciesareheadedbypeopleyourespect?

•Whichagenciesareofasizeappropriatetoyourneeds?

•Whichagencieshaveclientswhospeakwellofthem?

•Whichagencieshaveyourteamworkedwithinthepast?

Credentials Presentations /Chemistry Meeting

If you’re unsure of whom to invite to pitch, or can’t short list to 3- 4 agencies, it may be worth asking the agencies you are interested in to present their credentials prior to finalising the pitch list. Going to their offices for the presentation will give you a greater feeling for the type of agency they are and whether there is a natural chemistry between the teams that will need to work together - are they the type of people you want to work with?

We have included a screening questionnaire, which may assist you to put the information into a consistent format so you can judge the types of agencies you have spoken to.

You may also wish to provide a ‘brief’ or guideline for what you wish to see in the agencies credentials presentations.

After the Credential Presentations you should be able to narrow the Agency numbers down to 3 – 4 to move forward to the pitch process.

adviceconfidentiality

Some

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on

Pitching Guide

putbriefs

Whatin your

to

A written brief is essential and it should contain the following:

•Businessissues

•Market/Category overview (competitors, market share,market dynamics)

•Brandmarketingobjective

•Brandoverview

•BrandPositioningandkeymessages

•Communicationobjectives

•Marketingactivitiestodate(pastpromotions/campaigns,advertising and media, DM etc. market research)

•Competitive overview (brands, marketing activities, keymessages, advertising etc)

•Globalbrandingrequirementsifapplicable

•Budgetedspend level (this isveryhelpful tounderstandthe scope of activities that can be considered and level of expectations)

•Terms of business (e.g. proposed contract terms andremuneration model)

•Outline of expected deliverables (strategic solutions,creative solutions, no of concepts, key visuals, roll out, activity extensions, timelines, budget, agency team)

•Pitchtimeline&projecttimelineifalivebrief

•Evaluation criteria (a sample measurement table isprovided as a guide)

How good your brief is will play a large part in how good the agencies’ responses are. The brief can be either a live project or a test brief depending on the circumstances of the pitch. A project pitch should be a real brief, on a real product with real expectations and KPI’s. This will ensure you are ready to move forward quickly with your chosen Agency. If you are pitching an entire brand / the business as a whole, a test brief may be more appropriate.

Let’s havebriefa

meeting

If one of the agencies asks a question that results in you sharing information that’s not in the brief, do you circulate that to all the pitchers to ensure “a level playing field”, or does the agency that asked the question get the benefit of a good enquiry?

The answer is up to you and the pitch team from your company, but you might want to think about it in advance. These questions often provide a guide as to the quality of thinking of the agencies.


It is recommended you brief each agency separately, rather than briefing them together in one meeting.

If you decide to hold a briefing meeting, a few guidelines may help keep it simple and effective:

•Haveeveryonetherefromyourcompanywhocancontribute – legal, financial, sales and marketing

•Beasclearandconciseaspossible(obvious,butimportant)

•Providecopiesofanyprintedhistory(salesaidsetc.)

•Provideawrittencopyofthebrief

•Provideaccesstokeystaffandotherinformationsources

•Establishclearguidelinesforcommunicationi.e.onlythrough Pitch Champions, otherwise, confusion is almost unavoidable

•Distributeacopyoftheevaluationcriteria,whichwillbeused to determine the winner (see later in this booklet for an example)

Although there are multiple options we have found the most effective way to brief your agencies is to;

•Emailwrittenbrieftoselectedagencies3–5dayspriortomeetings

•MeetfacetofaceforaQ&Asessionregardingthebrief

Some agencies may want to meet between briefing and presentation to share preliminary ideas or invite you to attend research sessions. This approach will not only show you how the agency is thinking, but may well give some idea of how much you enjoy working together. See Ideal pitch timeline later in the document.

You may feel that under pitch conditions a tissue session is not appropriate, as it could lead to an unfair advantage.

or twosharing

A wordon

Pitching Guide

worth?pitchWhat’sa

At the beginning of this booklet, we said that a pitch demands a significant investment by the agencies involved. It is good business practice that the client pays something towards costs incurred by the unsuccessful agencies. This allows agencies to see that you value their time and you are a client they would like to work with moving forward, either now or in the future.

Here’s a quick guide to the agency costs involved in different types of pitches, and a recommendation for reimbursement.

Requirement Cost to agency Paid by client

Credentials presentation $2,000 - $5,000 $0

Strategic submission $10,000 - $20,000 $2,000

Creative pitch $25,000 - $50,000 $5,000

Request for tender documents also take up a fair amount of agency time, especially if there is complex financial information required and consideration should be made to the extent of information that is requested.

Please try and allow enough time for great thinking and work to be done.

One famous agency head, when asked what contributed most to substandard work, said – “When you give up wanting it good and start wanting it on Tuesday.”

Here are some sensible times to allow agencies to do their best.

Credentials – 2 weeks

The agency needs to know your business and your company’s ambitions

Strategic/Creative pitch 2 – 4 weeks

Strategic / Creative Pitch Ideal Timeline

Day 1: Email brief to agencies

Day 3-4: Q&ASessions

Day 10: Strategic Tissue Session

Day 16: Creative Tissue Session

Day 20: Strategic&CreativePresentation

time?What’s

the

To avoid misunderstanding on the part of either party, discussion and clear agreement between the client and the agencies should be made in terms of treatment of Intellectual Property. This is best done at the briefing stage so everyone’s clear right from the start.

Any pitch compensation offered is unrelated to purchase or ownership of Intellectual Property or Creative Concepts as the strategic insights, ideas and creative concepts produced by each agency under the conditions of a pitch remain theirs, unless negotiated otherwise.

In cases where ideas produced by one or more agencies that are not selected are wanted by the client, the purchase of usage rights (which could include local and international usage rights) should be negotiated. It would be sensible to agree a price for concept IP prior to the pitch in case you do wish to own the concept, but not retain the agency.

The rights to, and payment for, the winning agency’s work will need to be addressed in the resulting contract if this hasn’t already been covered in a pre-pitch agreement that the agency may ask the client to sign.


ownershipIP intellectual

property

Pitching Guide

How doyou pick a

winnerBefore the briefing sessions, you and your company pitch team should agree a list of evaluation criteria.IfyoudothisanddistributetheevaluationcriteriatableatthebriefingorQ&Asession,everyone knows how they will be judged and what are the most important things you’re looking for. It also helps when de-briefing unsuccessful agencies after the pitch.

•Dotheyunderstandthemarket?

•Dotheyunderstandwhatwe’retryingtodointhatmarket? 10%

•Doestheirstrategicthinkingmakesense?

•Doesitaddtothebrieforjustrepeatit?

•Istheirthinkinginnovativeorpedestrian? 25%

•Didtheircreativeworksurpriseanddelightme?

•DoestheConcepthave‘legs’?CanIseeitextendingthroughmanychannels?

•DoesitprovidethinkingthatIwouldn’thavecomeupwith?

•Isitabsolutelyrelevant?

•Diditprovokeareactionormerelyanod?

•DoIreallybelieveitcouldwork? 25%

•Didtheycomeupwithinnovativemethodsofimplementation?

•Cantheirtacticstakethemarketandcompetitorsbysurprise?

•Willourcompetitorshateusforit?

•Dotheyhaveorhaveaccesstotheresourcesneeded? 15%

•CanIworkwiththesepeople?

•DoIlikethem?

•Dotheyreallyseemto“get”usandwhatwe’retryingtodo?

•Ismybusinessgoingtobeimportanttothem?

•IfIawardthemthebusiness,willIsleepwellthatnight? 15%

•Aretheircosts/timelinesreasonable?

•DoIfeelasthoughI’llgetvalueformoney? 10%

Selectingthewinners

It may be tempting to hold the pitches at your offices, but although less convenient, you’ll get a better feel for the agencies if you go to their place.

Wherever you decide, we recommend that you set no more than 2 pitch responses a day and they should be no more than one and a half to two hours for full presentations. It is essential that key decision stakeholders / every member of your pitch team is present. Ensure you plan for adequate time between presentations for discussion and refreshment.

You need to be wide-awake and open minded for each agency. It’s a process that should be enjoyed, not endured. Respecting the agency’s presentations is the first step to building a strong connection and relationship with your agency.

If two agencies present similar ideas, they should be told, shown the work and advised that, in their case, the decision will now be made on the other criteria. This avoids copyright issues and ill-will when the chosen work appears.


On many occasions, the winner is the agency that best met the brief in a really effective, creative, even exciting way.

But once in a while, an agency will turn the brief on its head, challenge your thinking and come up with a brilliant solution you never would have thought of. It doesn’t happen often, but watch out for it. If an agency challenges your thinking it can demonstrate they will go above and beyond to ensure the best solutions for your brand are provided. Sometimes it’s difficult to swallow, but if you are open minded, an agency with this thinking can become a true partner.

Each person in your pitch team should score each agency’s concepts, on the Evaluation Criteria Matrix at the time of the pitch, then discuss and defend in a meeting afterwards.

Ideally get the team together the day after the presentations allowing for the “overnight test”, but keeping things fresh in your minds.

Get out the score sheets, discuss the pitches one by one, then, take a deep breath and vote for the agency that you can’t wait to start working with and argue hard for them. It’s surprising how often a consensus is relatively easy to achieve.

Pitching

Pitching Guide

agenciesContacting

the

Please try and make a decision within a week. The agencies will all be anxious for a decision. The agency landscape is small and news travels fast. It is important to inform all agencies on the same day to ensure you are the one delivering the news.

The winner will celebrate, the unsuccessful agencies may well ask for a debrief. This is where your evaluation criteria and your score sheets come into their own. You can, using them, give each group a clear idea of where they succeeded and where they could have done better. Making time to do this face-to-face shows that you value their efforts and are paying due respect to the time and effort they put in.

All work should be returned to the agencies who presented it.

Current remuneration models

• Negotiatedflatfee

• Base fee and performance based orvalue added incentive (strong KPI’s and measurement criteria required)

• Paymentbyprojectwithconceptfee

• Paymentbyheadhours(includingprofitcontribution)

• Performancebasedmodels

• Combinationsoftheabove

The more clarity the contract provides, the better the platform for the overall working relationship.

The best advice for any client is to require a contract detailing the specific inclusions and exclusions of the arrangement, together with an agreed schedule of fees for all services available from the agency.

Agency remuneration

Some questions to consider when selecting a compensation model are:

1. Does it allow for the provision of adequate professional service to the client?

2. Does it fairly compensate the agency for its work and its Intellectual Property?

3. Does it provide an incentive to both parties?

4. Is it simple to operate?

5. Can it be effectively reviewed periodically?


The next step moving forward is getting terms of business agreed in writing between the company and the successful agency. While the past has witnessed a proliferation of compensation models, agreements based on fixed fees or head hours and concept fees are now more common.

Regardless of the form of payment, APMA agencies, as with any reputable business, must remain profitable to meet your business objectives through responsible governance and sufficient resourcing.

In order to obtain accurate advice on cost structures and expectations, you should be as explicit as possible about the nature and extent of services you expect the agency to provide with an understanding of the total promotional budget. There is a large chance the work will need to start again to deliver to the final requirements. Therefore it is essential the work the agency has completed during the pitch is taken into consideration and sufficiently compensated for.

It is important to discuss if the agency’s work might be used in other countries. Most agencies will have a preset overseas concept usage fee to cover Intellectual Property.

Getting terms and conditions committed to contractual form as early as possible is a widely accepted element of successful client/agency relationships.

remuneration

Formulating

andcontracts

Pitching Guide

Managingthechange

Obviously you now want to get down to business as soon as possible. Having a thorough induction process mapped out for the new agency/agencies will ensure they are up and running as quickly as possible.

If this involves a new brand, this is relatively uncomplicated, but if it means a change of agency, some sensitivity is needed with regards to the outgoing group.

Agencies are almost always pragmatic about this transfer, and will provide any held materials efficiently and quickly. Who knows when individuals from either side could be working together again?

A period of 90 days is generally accepted as fair and reasonable for the transfer of responsibility from one agency to another, and depending on the contractual arrangement in regard to termination, the outgoing agency may be entitled to regular remuneration and cost recoveries during this time. If respect and honesty are applied, the process may not be pleasant, but will be businesslike and courteous.

Treating all of those involved with respect and courtesy has the potential to benefit you the most, remembering that you may be repeating the pitch process at some time in the future.

Pitching Guide

Clearly identify your reason for pitching and discuss with your existing agency (if applicable)

Select your company Pitch Management Team (you’re the Pitch Champion)

Establish initial shortlist of agencies and distribute the screening questionnaire if you choose to use it

Prepare a detailed written brief with objectives and clearly stated agency deliverables

Budget for agency expenses and discuss with selected agencies, recognising that ownership of Intellectual Property will remain with agencies unless otherwise negotiated

Sign confidentiality agreements with selected agencies. Establish clear lines of communication and responsibility

Organisebriefingand/orQ&Asessionswithpitchingagencies

Determine pitch evaluation criteria with your company pitch team and share this with competing agencies

Share timelines and set Agency meetings to ensure all parties are available

Conduct pitch presentations

Decision on successful agency

De-brief unsuccessful agencies

Agree remuneration, terms of business and sign contract with successful agency

Manage change of agency

pitch

A Checklistandtimeline

for your

Pitching Guide

Agencyscreening

questionaire

1. Agency Name:

2. Address:

3. Total number of employees:

4. Head Office:

5. Branches:

6. Ownership? Multinational / Australian Owned?

7. Principal client list and year acquired?

8. Senior client person dealt with? May we contact? Yes / No

9. a) List clients gained over past 24 months

b) List clients lost over past 24 months

10.Listresourcesthatwouldworkonthebusiness,specificallyseniorAccountManagement&CreativeResources

11. Which type of compensation arrangement do you prefer? Project Fee / Head Hour Fees / Flexible / GuaranteedFees&Commissionwithperformanceoverride/Other.

Please explain:

12. Comment on those accounts on which you feel you have made a significant contribution to the client’s success.

13. Is there any other agency information that is relevant

14. Special resources available

Pitching Guide

teamclient

agency

partnerships

the

Achieving superiorfrom

greatresults

Awesome results come from inspired ideas that are developed and executed by highly engaged teams. Today there are more channels, more audiences, more messages and more products. Marketing clients are confronted with a huge amount of complexity, as well as, a complex range of communications agencies each with different expertise.

Managing a multi agency team requires absolute commitment by all parties to regularly communicate, build relationships and own a shared vision for the brand. Clients play an integral role in championing this collaborative team approach. They need to provide clarity on agency roles and expectations, transparency on briefs and objectives and stability of budgets for their agencies. This then lays a strong base on which to build a committed and highly engaged client agency team.

Margaret Zabel, CEO The Communications Council former National Marketing Director, Lion

Pitching Guide

Your new relationship, like any other, needs to be nurtured if you want it to grow and be successful. If you have appointed more than one agency to your business, you should carefully consider how your brand and trade marketing teams engage them.

Consider the following questions:

•Howwilltheyinteractwithyourexistingagencypartnersandsuppliers?

•Howwillyousplittheworkbetweenthem?

•Howwillyouclearlydefinerolesandresponsibilities?

•Howwillyoumanagethetransition?

The following provides direction to assist in answering these questions and establishing a solid foundation for a productive partnership.

The purpose of holding a roster of agencies to work across your brand and channel portfolios is to employ a ‘best of breed’ model, using specialist expertise best suited to your business. This requires support from all parties to maximise collaborative efforts in delivering the best ideas for every part of a campaign strategy and execution. There are a number of ways to manage this, below are five options to consider when working with multiple agencies.

agencycollaboration

Keyfor managingconsiderations

Pitching Guide

Agencymodels

All Agency Model

This is the most commonly adopted model whereby the client oversees the inter-agency relationships, manages the briefing process and retains financial responsibility. Even under the best circumstances, ideas will clash and relationships will be tested as all parties strive to bring their best to the campaign. In these instances, it is the responsibility of the appointed Relationship Manager, to manage conflict through robust and constructive debate. A successful outcome is satisfaction not only for the client, but all agencies involved.

Lead Agency Model

Under this model, the client charges one agency with responsibility for the strategy development and brand vision across channels and disciplines. This agency will need to have a sound understanding and respect for the varied expertise and skills within the roster, in order to coordinate the best outcomes for all parties.

Beyond this, other models you may consider include:

Separate Agency – This requires clients to manage agencies independently. This model allows little or no agency collaboration and is not recommended for multi channel campaigns.

Single Agency – Appointing one agency to work across your brand has benefits in efficiency and ease of management. This is preferred for small to medium marketing budget campaigns.

Team Agency – This involves selecting multiple agencies from within a network. This is supported with one contractual agreement and one payment. Choosing from the diversity of talent within Australia will help you decide if this model has application for your brands.

Each has its merits and it will depend on a number of factors including the size of the business, the existingrelationships and your capacity for effective resourcing. Whichever model you choose, the rules and expectations must be established clearly and up front. The best results will come from a clear understanding of the specific business objectives.

Competition can be healthy. It can invigorate and re-focus, adding much needed value for a brand. It can equally be a costly measure, with the potential to damage relationships and easily detract from the core business objectives. Without proper management, competition can lead to unnecessary duplication and inferior results. A competitive pitch between 4 agencies on your roster may not necessarily deliver the best solution. Indeed, depending on the brief, it can often produce very similar strategic and creative responses, ending up a counterproductive process.

Competition

Pitching Guide

Practicalconsiderations

It is often said an agency roster is only as effective as those who manage it. Many of Australia’s top marketers believe that the most creative, powerful and effective work is delivered by inter-agency teams that work continuously, and harmoniously, on the same brands for a set contracted period (e.g. 2 years). This allows the inter-agency team to have a sense of brand/campaign ownership, allowing you greater flexibility with levels of day to day involvement.

If you have more than one creative ATL agency appointed to different brands, then why not your activation/brand experience agencies as well?

Consider the following benefits:

•Consistencyand familiaritywithbrandguidelinesandbrand direction

•A potentially deeper understanding of the brand andthe business challenges

•Richer,biggerideasdeliveredthroughcollaboration

•Betterresourcesallocatedtoyouraccountviacalendartransparency

•Easier tomanage (teamsgetbetter,moreconsistentrelationships)

Would your agency be more powerful if they could collaborate with the ATL, media, PR, research, digital and other agencies?

Remember, appointments of specific agencies to dedicated brands in the first instance, can still offer flexibility i.e. splitting your total work across 2 or 3 agencies for 2 years could still provide for the agencies to pitch if one agency is finding it difficult to crack the brief, or on a new product launch.

Perhaps the appointed agencies are new to your business. Consider conducting a trial year for brand and trade marketing teams to get to know the different agencies, work with them, discover particular strengths or skill sets, and allow them to choose which brands should work with which agencies for a fixed term.

Lastly, remember that your agencies will be involved and as passionate about your business as you let them. Treating them as a partner rather than a supplier will always deliver results and make the journey enjoyable.

Managing a team of creative and passionate people brings many benefits and at the heart of this success is open, honest and consistent communication. These tips will help you to stay true to what you need to achieve:

Be singled minded

Identify the challenge and focus the agencies on providing solutions within their remit of expertise.

Agree roles

Each agency should be absolutely clear on their roles and know the boundaries which they are then free to explore.

Encourage inter-agency relationships

This will benefit everyone involved and ultimately, lead to more rounded and focussed solutions. This should be monitored and directed by the client and not left to the agencies to manage.

Budget protection

Providing budget security for agencies allows them to effectively plan and resource without compromising their focus on the business objectives.

Communicate

Throughout the process it is important to communicate with each agency as appropriate. They are your partners and need to be informed of business critical decisions that affect their budgets, resources and focus.

Once you have established the most appropriate model for your brand and all agencies involved, it’s time to consider the practicalities of how to make this work.

Collaboration

Pitching Guide

To find an APMA Agency for your business, visit

www.apma.com

or

www.communicationscouncil.org.au

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