Bananos

Main problem

Should Demonstrate and Bananas remain separate companies or should they be integrated?

The previous question was selected based on the information provided by the case study, in which it is developed a specific scenario where two very important companies in the marketing industry are intending to grow and leverage their operational expertise with the help of a partner, with this on mind Bananas and Demonstrate agreed on forming a partnership where they would use Bananas’ logistic platform, but emphasizing in keeping the two companies strictly independent from both, a commercial and a strategic point of view, especially regarding the fact of avoid any client information share.

Although there are many other important questions concerning the case, such as; how could Wim expand the company’s activities beyond field marketing to a more well-rounded 360° marketing offering? How to successfully accomplish international expansion opportunities? How to get a financial partner involve in the group to help with its growth and expansion? It has been considered that the main problem to resolve in this case has to be in which degree should Demonstrate and Bananas integrate or interact, because with the help of a proper partner all of the secondary questions can be resolved in an easier, more efficient way.

Also it is important to answer this question since the merger of these companies could affect their respective images in the eyes of new and existing customers resulting in possible unconformity and even a feeling of contradiction since both of the companies had such a different approach, vision, implementation and execution of their final product.

Furthermore it is needed to analyze if a future merger is possible given the radical differences in management and culture of Demonstrate and Bananas. On one hand Demonstrate was a high-end, stylish, out there, and almost flashy company, with a feel of organizational chaos, which was appealing to many “sexy brands” and known by its gay-friendly culture and passionate workers, on the other hand, Bananas was a practical, money-driven company which always seemed to be extremely organized and focused on operational excellence. With such strongly established cultures it is difficult to see workers from opposite companies being able to put aside their differences and work together as a team in order to build a new culture and overall company.

Qualitative analysis

Before making a decision it is important to look at the actual situation of the company, review what they are doing right and what they are not, but also identify does external factors that could impact Bananas in a positive or negative way.

SWOT

Strengths

1. CEO´s sales and marketing experience at Unilever and Coca Cola.

2. Bananas have a clear structured organization.

3. Activities capabilities toward Netherlands and Belgium.

4. The company ensures clients confidentiality.

5. Roots in fast-moving consumers goods.

6. Average growth of 25% per year.

7. Well-named company.

8. Operational efficiency.

9. The company adapts organizational practices used on multinationals.

10. Bananas develop a proprietary software platform called BACS, used to manage full process of sampling campaigns.

11. Bananas use the CDS software program to the design of futures campaigns.

12. CEO and COO experience with SAP-style management software.

13. CEO´s participatory and consultative style of management.

14. The company EBITDA was on the high end of the rest of the industry.

15. Bananas owned three specialized companies: Amphion, Djeeni and Banana NL.

Weaknesses

1. Need of considerable capital.

2. The combination of experimental marketing, events and sales support, was quite common in the industry.

3. Clients in common with Demonstrate.

4. Campaigns focus on the functional aspects.

5. They offered a not very personal attention to their clients.

6. All decision power was in the hand of the CEO.

7. People perceive Bananas as Win´s Company.

Oportunities:

1. Great growth potential.

2. Facilities to get a loan or an investment.

3. Opening new markets in UK, Germany and France.

Threats:

1. Entrance of marketing and advertising agencies in 360° marketing.

2. Low barriers of entrance. Starting a field marketing business does not need too much capital or know-how.

3. The field marketing Industry is very fragmented with lots of small local companies.

Conclusions:

• Bananas appear to have a promising future according to the opportunities found, like great growth potential and easy obtainment of sources.

• There are some threats that could mean a risk for the company. Principally by the entrance in the market of competitors, that can cause some difficulties in sales for the company.

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