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In-House Agency Creation and Management.
- 1. BioPharma In-House Agency Case Study Dana M Small Senior Category Manager Head Of Global Commercial Operations
- 2. Agenda • Introduction/Overview • Building the Sourcing-Marketing Relationship with Strategy • Expanding the In-House Agency • Support for AOR Vs. In-house
- 3. Dana M Small • BioPharma Experience • Eli Lilly & Company • Amgen • Gilead Sciences • BioMarin • Procurement Expertise • Advertising Agencies • Digital and Traditional Media • Professional Services • MsCategoryManagement.com Blog • Speaking events, webinars, podcasts, panels, advisory boards
- 4. Overview • Mid-sized BioPharma Company • Estimated $2B in Revenue • 20+ Year Established Global Presence • Expanding Pipeline into new Disease States
- 5. Building the Sourcing- Marketing Relationship
- 6. • Understanding constraints with brands and marketing support • Limited or small budgets • No competition • Niche expertise needed • Limited resources • Then build on successes of small project work (non-mandated environment) • Without a strong relationship, execution and change management is difficult Relationship Building with Strategies
- 7. Multi-year Sourcing Strategy • Evolved with In-House Changes and Requirements • Included: • Consolidating Agencies per Brand / Franchise • Aligning Pipeline Brands Globally • Negotiate Rate Cards/Blended Rates • Tiered blended rates for tactical work (overflow for in- house) • Establish SRM Processes • Lead multiple RFx events for Digital/Production teams • Engagements and team size increased at the same rate
- 8. Results of Relationship Building Internal Team • Gained trust over time through increasingly complex projects and negotiations • Created partnerships with key stakeholders • Remained flexible to best support brand needs (no mandate for 3 bids / RFP process) • Grew executive support to facilitate best practices in purchasing practices Agency • Established partnership with account leads • Facilitated 360 reviews with brand (SRM) • Became point person for internal issues and feedback • Created internal opportunities for best performing agencies (Agency Day)
- 10. Agency Structure and Relationship • Multiple Agency Relationships Per Brand • Global and Regional • Limited time spent on-site • Few FTE’s fully dedicated to account • High turnover • Hard to keep key talent (Writer) • Issues with execution and decrease in quality • Increasing number of rounds of revisions • Consistently over budget
- 11. Starting Point - Ops Structure Marketing • 4 FTE Team Members • Print, Promo & Fulfillment • Project Management • PRB Support Digital • 3 FTE Team Members • Internal Analytics • CRM and System Support • Event Support
- 12. Marketing Organizational Structure - Changes Commercial Org. Commercial Ops Digital Ops Marketing + Creative Global Brand Mgmt. Pipeline Franchise Support Marketing + Creative Brand Brand EUMEA ROW Sales In-House Agency Support
- 13. • Control over design and execution • Resource flexibility • Reduction of cycle time • On-site resources • Manage AOR spend • Ensure AOR focus on strategy • Indirect response to agency issues Expanding and Adding Creative Talent
- 14. New Focus for AOR • Strategic and Creative Support • Senior Level Resources • Pre-launch/Launch campaign activities • Brand Guidelines and Consistency • Creative Campaigns Asset Production • Website Design • Video Production
- 15. The Product Life Cycle (Spend)+Revenue (Potential) ExtensionEarly Intro Growth Maturity Decline Demise Inception Launch Loss of Exclusivity Agency In-House Support Agency
- 16. Print Production • Mix of FTE and freelance support (~10 total) • Designers, Copywriter, Editor, and Creative Director • Leveraged In-House Team contacts • Performed rigorous hiring process (testing) Digital Production • Increased team to (~15 total) • Supplier Support • Expansion key to support pipeline initiatives Expanding Creative In- House Support
- 17. New Focus for In-House Team • Supports all audiences (HCP, DTP, etc.) • Focus on post-launch campaigns • Execution and Repackaging • Manages year to year update of tactics • Expansion of services paced with staffing • Additional digital consulting (development/management) support • Cross Organizational Support
- 18. Print Production Lead • “Fab 5” Creative Team + Marketing Ops • Brand Development/Design (including re-branding) • Collateral Print Materials (all audiences) • Internal Communications • Warehouse/Fulfillment • Project Management and Regulatory Process Support
- 19. Digital Production Lead • Advanced Analytics • CRM (Customer Relationship Management) • Platform Management • Digital Display Advertising • Direct, email, etc. • Media Buying/Planning • Digital Community Support • Social, Mobile, etc. • Website Development / Management
- 20. Benefits of Implementation Reduction in project hours Shortened regulatory/ cycle times All print production moved in-house Cross-functional company use Ability to scale team Bottom-line savings
- 21. Support AOR vs. In-House
- 22. Working with the AOR Formalized process Yearly Rate Negotiations Bi-yearly SRM Review of KPI’s Potential for 3rd Party Pass Through Markups Limited Interactions (onsite staff) Staff Managed by Agency ( issues for turnover, hiring) Contract Clauses Drive Relationship Revenue or profit focus Non-dedicated FTE
- 23. Key Support Differences Agency focus is revenue / profit margin leads to: • Resources stretched thin • Certain brands becoming low priority (“B-Team”) • Internal turmoil over support Changes the sourcing support type: • Additional SRM meetings • Agency churn/RFx to add new agencies Only the best AORs become partners
- 24. Working with In-House Team Focus on savings/operational efficiencies Aligned corporate and departmental goals Ability leverage other corporate discounts Less work for strategic changes Executive influence No on-boarding IT issues Control over hiring process Known freelance costs
- 25. Agency In-House Management • Partner for all large RFx events • Global / regional AOR • Warehousing, fulfillment, print • Website management, media providers, website hosting • Leverage print and digital production providers cross-functionally • Once project/tactic is complete, asset is transferred over • No agency issues – i.e. holding it hostage • Easier to switch AOR providers • Strategic cost analysis easier to complete due to budget insight • Category and Corporate Strategy Alignment
- 26. Similarities between AOR and In-House Team • Creative teams incorporate freelancers • Single point of contact – print or digital production leads • Can audit hours/rates • Creative team autonomy • Benchmark internal/external tactics
- 27. Best Practices with an In-House Team • Understand fully-burdened FTE rate • Total Cost of Ownership Analysis to understand savings (not just hours) • Leverage in-house analysis for AOR negotiations • Building a database internal/external • Vendor research and support
- 28. Thank You!
Editor's Notes
- I think some background on the in-house agency, why it was established, capabilities, size, etc. to start is good. I think for this audience, which is mostly marketing procurement professionals, will be really interested in how procurement plays a role with the in-house agency and how it differs (if it does) with an external agency.
- Issues didn’t force change, only supported it and help create the business case This is helped support the system that was set-up
- Evolved over 4 years as with working relationship
- As our relationship evolved, so did the in-house agency Because of partnership, we were able to do it together
- Understanding the business case environment Another item to take into consideration is resources. Part of the problem in implementing these strategies in small business - is that there is only one of me, and brands are small in size 3-4 people max. Therefore, you have to take into consideration, the multitude of suppliers they are working with (and yourself) If you start dividing to bid out all projects, yourself/brand will be overwhelmed. The ecosystem within marketing is just too large, and at a small company you’re too small. But if you are at a larger company, than it does make sense to source a lower category level. I’ve seen larger corporations can split out support type consumer, patient, etc. or even agency type, small corporations don’t have that luxury. You have to be mindful when you set strategy Limited brand resources (including budget) – make sure the agency is the right size for support. Larger agencies can reject RFPs, and small agencies may not have the right skill sets
- Evolved over 4 years as with working relationship Can’t just jump in and say “here’s what we are going to do” , relationship strength is key in assessing what strategies are even possible If you walk into a VP’s office and say, Here’s what I’m thinking, and your goals aren’t aligned with his and the corporation, you’ll be asked to leave That’s why building the relationship over time helps in building long term strategy that they can be happy with
- Issues didn’t force change, only supported it and help create the business case This is helped support the system that was set-up
- The “Who” / “where” Show divided in different parts of the organization, explain they started together
- The “Why” Indirectly deals with agency issues
- The “what” for the AOR
- The “Who”
- The “How” Four year journey Most of print production started out as freelance/consultants then hired on Creative similar but ability to find new talent when needed due to employment laws
- The “what”
- The “Why” Indirectly deals with agency issues
- Things you won’t see with an in-house agency – these are all differences from the in-house team
- Things you won’t see with an in-house agency – these are all differences from the in-house team