Case Studies  >  Direct Marketing Firm

BRANDING EFFORT HELPS DIRECT MARKETING FIRM EXPAND ITS HORIZONS

Nuts-and-Bolts Marketing Support Blended in with High-Level Consulting

Nicolazzo & Associates' client was a medium-sized direct marketing firm headquartered in the Northeastern United States. The firm, which already had relationships with a blue chip client list, was trying to differentiate itself from dozens of similarly sized shops around the region and beyond.

Background and Situation Analysis

N&A's client stood at a crossroads. For the better part of a decade, it had grown and prospered in a way that reflected its aggressive entrepreneurial spirit. In general, the company was highly successful: more than $120 million in billings and a spot among the top 10 U.S. direct response agencies. Along the way, it had consummated solid relationships with some of the biggest names in American business (Fidelity, Bose, MediaOne).

N&A's client was an operating division of a large advertising agency also based in the Northeast. In general, the direct marketing firm had been permitted to chart its own course and, if necessary, call on senior level talent at the ad firm. When appropriate, the operating division even made acquisitions that complemented its business. Despite its success, the firm needed to boost business and fine-tune its reputation in an industry that was starting to experience rapid consolidation. Additionally, the founding partners wanted to redefine their mission and carve out a new niche in the industry.

The Plan

Acting as management consultants, N&A's account team first conducted field research by conducting a series of intensive, face-to-face meetings with agency principals, followed by similar interviews with client representatives from a broad spectrum of account categories. Our goal was to look beyond the routine and find a differentiating positioning strategy that would set the client apart from virtually all competitors. N&A staff members found out "what worked," "what didn't work," and "what clients really wanted from their agency."

Having analyzed the information compiled from these in-depth interviews, N&A discovered that clients not only utilized the firm's services for "nuts and bolts" direct marketing, but more often than not, relied on the organization for "business consulting." In effect, N&A's client had become a trusted business consultant that helped set strategic direction for clients. The "mechanics" of resulting direct marketing campaigns were also well executed.

This distinct positioning enabled N&A to recommend a "branding" campaign that positioned the firm as a "direct and interactive marketing consultancy." N&A's client had successfully blended its standard business practices with high-level consulting, which significantly bolstered its bottom line. At the time, this was a unique offering of professional services that combined strategic direction with actionable results-oriented campaigns.

The Results

N&A's client was able to consistently increase its business and, even more important, dramatically improve profit margins due to the nature of the "consulting" differentiator. The organization's senior executives began taking a seat at the table with top client operating officers.

In short, the direct marketing function was repositioned and elevated to high-level strategic consulting.