The Hindu Business Line : `A smaller agency can deliver more bang for the buck'

"Having worked in a larger agency, I can call clients confidently and tell them that they are more likely to get more bang for the buck with a medium-sized agency like TBWA, where they get the benefit of closer interaction with the seniormost level."

Preet K. S. Bedi, President and CEO, TBWA Anthem.

On September 2, Preet K. S. Bedi took over as President and Chief Executive Officer at TBWA Anthem in New Delhi. A post which had been lying vacant since Sanjay Nayak, the President and COO of TBWA Anthem quit in January in 2001. Bedi's last job was as Director at the Rs 750-crore Lowe, where he served for 15 years and was responsible for handling all the non-Hindustan Lever business, till recently. Prior to Lowe, Bedi worked in other agencies such as FCB Ulka and Leo Burnett. As the grapevine goes, Bedi was seen as the successor to Lowe's current Managing Director, Prem Mehta, who was due to retire in 2004 but was granted a further extension, thwarting Bedi's ambition to head Lowe.

Known for his business acumen, the 46-year old Bedi is supposed to be good at getting and retaining accounts, according to his fellow ad men. A recognisable face on Indian television, Bedi is also one of the oldest prime time English newsreaders on Doordarshan. His challenge today is obviously to take the Rs120-crore, Omnicom-owned agency to greater heights. On a hectic whirlwind tour to Mumbai recently, Catalyst managed to get the new head honcho of TBWA Anthem to give some insights into his own agency and industry, especially with regard to the challenges which lie ahead. Excerpts from the interview:

What has been your experience so far in working for a relatively smaller agency like TBWA Anthem after having served in India's second largest ad agency?

Lowe and TBWA are probably as far apart as any two agencies can ever be - and that is what I am enjoying to the hilt. I am actually getting a set of experiences that I could never have managed at Lowe - how to increase business and keep costs well under control so that we remain afloat month after month. This was never an issue at Lowe. At TBWA, at least for the moment, this is a key issue!

Just what made you take the plunge to join a smaller agency considering the high comfort levels enjoyed at Lowe? What will be your new challenges?

After having worked at Lowe (earlier Lintas) in a very senior position for several years, I think I was getting set in a comfort zone and was keen to get out of it. I was also keen to move to a place where I could personally and professionally make a difference. TBWA was an ideal choice because worldwide it is among the finest agencies and the onus is now on me to take it to the international level in India.

My challenge is, of course, to grow TBWA India into a healthy, brand-building agency, which is proud of its international and national heritage. The fact that I will have to do it without the benefit of a big brand such as Lowe behind me only adds to the excitement.

Don't you think it is easier to get clients while representing a bigger agency?

Clients respect large agencies; they also respect professionals in whom they see professional value. In the last three weeks at TBWA, not once have I ever felt that clients respect me less because I now represent a smaller agency.

Indeed, the converse may be true - most clients seem to appreciate the fact that I took on a challenge; I think all of us like fighters!

Do you think you will be able to achieve similar heights at TBWA Anthem, considering you built Lowe's branch in Delhi from scratch?

I took over Lowe Delhi in 1991 when it billed Rs 5 crore; by the time I left it, the billing was close to Rs 20 crore.

I definitely need to achieve similar targets but have a lesser time frame to achieve them in. I do have the advantage, however, of a large network in Delhi, Mumbai, Pune, Kochi and Chennai which can help me achieve my goal. Also, a set of top-flight professionals at TBWA who, like me, have picked up the challenge.

What kind of a structural set-up does TBWA have? Are you looking at new areas for added growth?

At TBWA, we have a strong full-service agency and also a public relations division, which is amongst the best in the country. Our media buying for central media-buying brands and clients is also beginning to get close to a critical mass; once that happens, I am sure our media-buying arm will become pretty significant.

What kind of growth rates have you projected for your agency in times of a slowdown in the industry?

We need to grow at 100 per cent in the next calendar year and by at least 50 per cent in 2004. I am very confident we can manage that.

Like most other ad agencies, is TBWA out to buy the stake of Anthem in the joint venture and become a subsidiary company of its parent in the future?

TBWA holds a majority stake in TBWA Anthem. In the next few years, they would like to reach 100 per cent ownership.

With my taking over, the intention is for the company to be run as a completely professionally run agency.

How does the slowdown in the business worry you and how do you see your agency coping with the downturn?

The slowdown certainly worries me. But I think it is a bigger worry for larger companies which typically have large overheads.

In a slowdown, clients look for the maximum bang for the buck. Having worked in a larger agency, I can call clients confidently and tell them that they are more likely to get more bang for the buck with a medium-sized agency like TBWA, where they get the benefit of closer interaction with the seniormost level, instead of being handled by an account executive or an account supervisor.

My observation in Lowe as well as in the few weeks that I have spent at TBWA is that clients are working for and sometimes demanding senior level interaction and strategic inputs much more than ever before, and that is an opportunity.

According to certain media reports, clients are no longer willing to pay the mandatory 15 per cent commission on media spends. Is it true? What is your experience?

Yes, there has been some talk about a reduction in commissions by clients. But with my experience at Lowe and TBWA, I can assure you that the reality is not half as grim as indicated in recent reports in the media. Most clients understand and respect the fact that running people businesses like advertising are today an extremely expensive proposition and are therefore ready to work on mutually responsible terms which ensure responsible margins for the agency. The biggest strength of medium-sized agencies is that they are able to control their overheads and hence, manage their businesses better.

What would you say is the biggest strength of your agency today and how would you capitalise on it?

Our biggest strength is the TBWA heritage and the strategic planning process we call `disruption'. In category after category it is becoming increasingly clear that the toughest growth path is the incremental growth path; it is almost always easier to make a big difference by doing things differently rather than to make a small difference by doing them as before. This is the heart of our `disruption' planning process and I want to roll it out quickly - never has the market needed it more!

Finally, what new accounts has your agency bagged since you joined this month?

In the last two weeks we have won the Xansa business in Delhi. This was a pitch made, I understand, by three or four agencies. More good news should happen soon.

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