Firstly, In case if the Yadana account doesn’t work well it would have to reduce the manpower hired for the account will damage the agency’s image. Secondly, determining the medium of advertising seems to be a problem, ignoring television would be ignoring the urban and metro market wherein radio and print would require a different skill set for a strong customer base to create. Thirdly, the customer although aware of the market is brand loyal and needs to be educated first. Fourthly, as the market seems to have shrunken it would actually be an opportunity in disguise. Very few players would always give a chance to grab a very large share of the market.

Solution 1: The agency should go for the new airline account

In favor:

1. One big account on the agency portfolio can attract another big portfolio. It can give a lead to the agency in the market in terms of goodwill and share.

2. It can generate more revenues for the agencies.

Against:

1. The returns for the firm from such a big investment may not be immediate for the firm which blocks the resources for a longer period of time.

2. To serve better the agency needs to invest better. If the account doesn’t prove worthwhile then the investment would be more than the agency could manage or take into stride.

Solution 2: Stay put in the market.

In favor:

1. Lull in the market is the time to sharpen the strengths and work on weaknesses preparing for a better future.

2. To Rise the bar of efficiency in service with the existing client to strengthen the existing base.

Against:

1. There are limited players in the market right now. Grabbing a larger share of the market is possible if not aggressively moved into the market.

2. This will result in a steady flow of revenues but in the long run, the competition would prove to be superior.

Solution 3: Going aggressive and expanding the market base.

In favor:

1. The agency is having a 6% market share. Going aggressive will expand the base and get additional revenues and most importantly additional clientele for the firm

2. The conventional way of reaching the customer would be radio but the agency can implement new techniques and technologies which will go ahead and prove to be a strong point.

Against:

1. The investments would again run neck to neck with operating cost versus marketing costs. If the overall market is gloomy even if the most aggressive marketing techniques are implemented the results remain uncertain.

2. Although a new medium of advertising needs to be tried the government restrictions cannot be overlooked, which proves to be a loss of opportunity for the agency.

Recommendation and implementation:

1. The agency is recommended to go ahead with the Yadana Airlines deal. An effective deal can be brought about by implementing phased out a contract with feasible timelines.

2. Market penetration should be sought after by taking advantage of the competent staff. The existing clientele should be given a first-class service to ensure steady returns and long term loyalty.

3. A customer survey and feedback would give a clear idea to the agency regarding customer expectations. It would also give an opportunity to review its own strengths and weaknesses which is necessary.

4. From the agency perspective, in order to avoid “hire now-fire later “policy, the business should be steady, managed by competent staff, and also expand for greater returns.

Learning from the case:

Advertising seems to be a very volatile business that fluctuates along with the markets and economic conditions. But if all the parameters of managing a business are to be applied then any business after doing an accurate assessment of its own strengths and weaknesses should go ahead and convert market threats into opportunities. The economic downturn is not a bane but certainly can be a blessing in disguise. There are some changes that are forced by the environmental factors on the organization, but organizations that initiate the changes from within even if on a smaller scale to begin with are sure to succeed in the long run.