The presentation of the roadmap can be downloaded from link below.
Luke Taylor, CEO: "LBi is a global marketing and technology agency that blends insight, expertise and creativity to solve brand and business challenges. Clients prefer a single supplier that can manage all digital activities. These activities might range from web build services and ongoing original content creation through to (online) customer acquisition strategies or even reputation management services. Year-on-year global digital marketing spend is increasing. In order to take better advantage of that, we need to tailor our business model more towards client demand. As such, it is our objective to be a frontrunner in the industry and become the definitive agency for the digital age."
In order to better meet client demand LBi has set out the following strategic priorities:
1. Build expertise centers and strengthen full service offering in key hub markets US, UK and Asia
LBi will continue to extend its best in class full service offering and expertise centers in its two key markets of UK and East coast US as international mandates from key multinational clients are typically awarded in these geographies.
Specifically in the US, additional strength and depth in both Media and Search need to be acquired in order to deliver a more marketing oriented and integrated full service offer across LBi's existing client base. Furthermore, skills in social media marketing and content syndication will be developed organically in the US in response to customer demand.
With the recent acquisition of leading Search Engine Optimisation Company Netrank, LBi's service offering in the UK is almost complete. Further depth in paid search needs to be developed, but this will be done organically.
Over the past year, LBi has also established a full service offering in India, which is anticipated to evolve into the third key hub market. The objective is to be the first company able to look after the entire spectrum of digital needs in the Asian market. LBi was recently awarded agency of record mandates in Asia that encompass both display media, pay per click, campaign work, platform build and managed services.
In all three hub markets, the business development infrastructure needs to mature further and be better coordinated, -so that LBi can engage effectively and consistently across large global opportunities. These activities will allow LBi to improve the quality and concentration of the client base by focusing on a select number of key clients who engage across the entire breadth of LBi's service offering.
2. Leverage local best-in-class service offering, skills and country rate cards across international client base
LBi will increasingly leverage local country specific rate cards and skills to the economic advantage of its clients wherever they may be. A new suitable incentive model and organizational design will be created so that can happen easily.
LBi will increasingly focus on distributing the delivery of big international engagements across multiple geographies. This allows local markets to benefit from a higher centrally procured rate card. LBi's unique footprint of specialist services provides global clients services at rates that are significantly discounted relative to local US and UK levels. Such specialist services include the world class rich media offering that is located in Copenhagen (Denmark) the IDTV practice in Milan (Italy), and technology offering in Mumbai (India). With these services, LBi is able to create a compelling economically differentiated offer.
3. Evolve offer in local European markets
As the market for LBi's services matures and consolidates there is a need to continue to realign the service offering to become even more marketing and ROI orientated. It is mission critical that LBi defines and owns the online customer acquisition strategy across all its key client accounts. Therefore, it is necessary to further improve the planning and creative capability in several markets. LBi will also mature the local country research offering in order to build more specialist understanding of local market customer behaviour.
Furthermore, the performance marketing consulting offer of recently acquired OX2 in Belgium will be used to rollout the data dashboard platform across key clients. This platform aggregates both acquisition specific metrics with business and conversion related KPI's to improve investment decision making across the digital channel.
These developments will improve the predictability and stability of the revenues as LBi moves an ever greater proportion of its top-line towards retained agency of record relationships and away from inherently risky fixed fee projects. A renewed focus on cross selling services into existing relationships will additionally ease the burden on expensive new business development and drive further margin improvement.
4. Move towards one global brand with consistency of process and offer for increased recognition as the leading international digital agency
LBi needs to go to message coherently under one brand and one vision so that quality and relevance of our offering is more clearly understood. LBi provides a complex suite of services that blend insight, creativity and technology. Success relies on a culture that supports effective collaboration across multiple disciplines. A strong vision, a set of clearly defined processes and an incentive model that encourages cooperation are needed. To act more as one integrated company a knowledge management infrastructure will be rolled out which creates a consistency of consultative expertise across all key markets by both sector and customer segment. A single go to market message and shared set of processes will be cascaded through the organization and will further drive efficiency and margin improvement.
Operational 2008 action plan
Based on these four strategic priorities, LBi has a set up a detailed operational action plan for 2008. This plan is aimed at further building, tailoring and aligning the LBi business model in such a way that it better suits client demand, consequently creating a more solid base for sustainable margin improvement and value creation.
For further information please contact:
Luke Taylor, CEO, LBI International AB
Eva Ottosson, Group Communications Manager, LBI International AB