Coca-Cola outlines selection process for mobile marketing partners

By Mickey Alam Khan

November 18, 2009

Tom Daly of Coca-Cola

LOS ANGELES � How do the various brands of Coca-Cola Co. select their mobile marketing agency and service provider partners? An executive shared the formula for the first time for working with the beverage giant.

Coca-Cola�s objectives of relationships with third-party service providers are to drive continuous improvement in productivity, delivering best strategic and creative output, competitive advantage and to attract and retain the best talent. Thus said Tom Daly, group manager for global interactive marketing at Coca-Cola, in his opening keynote at the Mobile Marketing Forum.

�We�re not buying structures, we�re not buying the names of the companies on the card � we�re buying access to people,� Mr. Daly told an audience of mobile marketers at the event organized by the Mobile Marketing Association.

The approach begins by studying things that drive success, Mr. Daly said. Hence a detailed understanding of skills is relevant to all.

Generalist skills
In the generalist area, he listed nine must-haves: talent and environment, readiness with resources, innovation, new-idea generation, working on ideas in use elsewhere by Coca-Cola, collaboration, openness to give-and-take, right skills and the staffing of the potential partner agency.

Over and above this checklist is demonstrated thought leadership.

�This is really about communication,� Mr. Daly said. �Are you good at hearing what we�re saying, playing it back to us?

�We have a role in this,� he said. �We have to make sure we�re bringing you clear vision.�

Mr. Daly also warned against underestimating the basics, especially in project management.

�Coca-Cola, as a brand, is under a microscope,� he said. �Everything we do is documented.�

Specialist skills
The second must-have quality in an agency partner for Coca-Cola�s mobile initiatives is specialist skills.

�If there�s one thing we know, mobile advertising works best in an integrated marketing communications plan,� Mr. Daly said.

The executive also stressed that �there is an art and science to what we do.�

Among the several specialist skills that Coca-Cola sought in its mobile agency partner were prior experience working with the company, prior industry experience in the same category, knowledge of mobile technology and process continuity.

Expect Coca-Cola to interrogate the partners� processes pretty thoroughly, Mr. Daly said.

�Truth of the matter is, be open and clear,� Mr. Daly said. �Show us where the pitfalls may be � transparency is key. It�s why I�m able to discuss this.�

Finally, the mobile agency partner must be able to demonstrate both generalist and specialist skills.

Once the company puts together the short list of agency partners and then selects a partner, it draws up a statement of work and a master service agreement. The whole process can take up to eight weeks, with a lot of back and forth.

A key policy to remember is whether Coca-Cola designates the process as a pitch or as an assignment.

Timelines and evaluation differ based on the differentiation. And then, of course, there�s the compensation � en guard.

�We�re no longer paying for time,� Mr. Daly said. �We�re paying for value.�

Mr. Daly surprised everyone in the audience by offering his email address: .�

Comments on "Coca-Cola outlines selection process for mobile marketing partners"

1. John Smith says:

   November 18, 2009 at 5:56pm

   Hi Mr Daly, I have a question, do you share the same thinking for your Latin American Business? If so, what could be the best way to approach your interests? Thanks

2. Tom Daly says:

   November 18, 2009 at 2:24pm

   As mentioned at MMF Los Angeles, it is premature to go into any detail in this area. However, the company has communicated its philosophies in other forums (e.g. ANA), so you might find more there.

3. Dave Ury says:

   November 18, 2009 at 8:16am

   Great insight on the agency search process. Question to Mr. Daly: How do you define "Paying for value"? Are our agency partners paid on a performance basis? Please elaborate if possible.
   thanks