PRESS RELEASES

2010 “own-goal” looms for nervy marketers

Marketing strategists fretful about the downturn are in danger of scoring an ‘own-goal’ ahead of the 2010 soccer World Cup by putting planning on hold and assuming that specialist service providers will have enough spare capacity to make up for lost time as the big event draws near.

The assumption may be flawed, warns Amanda Rogaly, managing director of Rosebank-based Kadoro Events & Communications.

She’s worried that the stalling economy is encouraging short-term thinking that will be detrimental for brand-builders hoping to maximise 2010 opportunities. What’s more, marketers planning to stage regular annual events that coincide with the World Cup may find that the local events industry has insufficient capacity – unless planning takes place in good time.

“Without some brave decision-makers and forward planners,” says Amanda, “the marketing industry could let the World Cup opportunity slip while congestion and frenetic activity over the World Cup period could create difficulties for those trying to stage other events and promotions. Planning ahead can be tough in today’s economic environment, but you plan to fail if you fail to plan.”

After several years of strong GDP growth, the recent national budget predicted growth of just 1,2% this year and falling company earnings have prompted intensive expense management in many major groups. There is mounting concern this will lead to capped or curtailed marketing budgets and that clients will stall over new commitments, says Amanda.

“Today’s cuts and failure to plan all your 2010 scheduled events early could jeopardise the potential marketing pay-off from 2010,” she cautions. “Companies may be forced to choose alternative suppliers or be prepared to accept higher than normal costs simply because insufficient preparation was made this year.

“Kadoro is well positioned. We’ve been staffing up and have a solid book of repeat business. But this is far from the norm in a specialist sector like events and brand activation. Most companies in the industry are small, sometimes with only two or three staff.”

In this scenario, companies typically lack the skills base and spare capacity for a game of Just-in-Time catch-up when big demand suddenly emerges.

Vicky Crease, a supplier of catering services to Kadoro, confirms the slow start to strategic alliance-formation ahead of 2010.

“We field some calls about our availability and scheduling, but there’s little sense of urgency or eagerness to engage in early planning,” says Crease. “It’s not yet critical, but it soon will be if the wait-and-see mindset continues.”

An appropriate planning window enables specialists in a relatively small market to manage skills and capacity constraints. “Unfortunately,” says Kadoro’s Amanda Rogaly, “that window may soon slam shut.”

She advises marketers to develop a 2010 vision today and try to quantify the additional resources that might be needed and where they can be tapped in the local market.

“Companies looking to save in the current slowdown are making false economies by delaying their planning,” Rogaly adds. “You don’t achieve smart pricing by paying a premium because you had to call in over-stretched specialists at the last minute.

“Form relationships now and your new partner can help you secure savings by scoping your 2010 needs in good time. This holds good for those looking for linkage with the World Cup and others planning regular annual events who blithely assume it will be business as usual.

“It will be ‘business unusual’ in the events sector next year. Suppliers will assign capacity to early movers. Late starters may have to settle for second-best and form relationships with untried, inexperienced suppliers while making use of second or third-choice venues.”

“Difficulties like this can be avoided, but only if brand-activators make an early start with their planning.”

In addition, it is advisable for clients to establish any special needs in terms of equipment and people as soon as possible.

She adds: “Footballers sometimes get extra time to save the game. Brand-activators don’t.”

Ends

About Kadoro Events and Communications:

Kadoro Events and Communications is an event management and brand activation company which focuses on creating strong brand awareness – all enhanced with supplementary public relations activities. Kadoro looks at events from a strategic point of view, by analysing the brand intrinsics, strategic plans, creative developments, current market place and client issues.

Kadoro is the Khoisan word for tinderbox of stories.  The name was chosen because it is symbolic of creativity and diversity, while uniquely South African.  Each event tells its own story, and Kadoro is set to create stories of exceptional events and campaigns for many years to come.

Issued on behalf of : Kadoro Events and Communications Pty Ltd
Contact : Amanda Rogaly
011 788 6470
www.kadoro.co.za
info@kadoro.co.za

Issued by : Tale Spin Media
Contact : Zelda Williams
011 794-5366 or 082 461-0689
zelda@talespin.co.za