Grey Advertising - Growth by Diversification | Services Marketing Case Studies

Details

Case Code : CLSM030
Publication date : 2005
Subject : Services Marketing
Industry : Advertising
Length : 03 Pages
Price : Rs. 100

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Key words:

Grey Worldwide, Advertising, Diversification, Communications, Clients, Marketing, Strategies

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

Grey Worldwide, a part of the Grey Global group, was a worldwide player in advertising, public relations, and other related services. This caselet reflects the strategies of Grey Worldwide (GW) in India to become a total communications company through diversification. It also examines GW's efforts to increase client base through various methods.

Issues:

» Diversification as a growth strategy in advertising.
» Importance of emerging trends in sourcing new business.

Introduction

Grey Worldwide, a part of the Grey Global group, a worldwide player in advertising, public relations, and other related services, set up operations in India by acquiring a 42% stake in Trikaya Advertising in 1987-88. In 2001, to strengthen its operations, it bought out the remaining 58% and the company was renamed Grey Worldwide (GW).

Nirvik Singh (Singh), who took control of GW in 1997, put it on the growth path by the use of various diversification strategies. The company became a part of the Global media giant, WPP, in 2004.

The same year, it was ranked among the top 10 agencies of India and collected Rs 5000 mn in billings. In 1997, GW decided to focus on other areas apart from its primary business - advertising solutions...

Questions for Discussion:

1. Instead of focusing on its core service, Grey Worldwide (GW) chose to venture into many other businesses. Discuss the reasons behind this move and its contribution to the success of GW?

2. Diversification was not the only method that GW adopted to increase its client base and provide quality services. Elaborate on the various other initiatives GW took to widen its customer base.