BANANA (A)
Integration of Banana and Demonstrate:
The Banana group is reaching the limits of its current growth path and Wim has the job in hand to decide the way forward for the company. The group consists of two companies, Banana and Demonstrate, which are operating independently and also act as the competitors in the market.
Wim is considering integrating the two companies and wants to expand the company’s activities further from the traditional field marketing to 360 degree marketing. 360 degree marketing to market the products through websites, social media, online marketing, advertisement, print, packaging, motion and environment. The international expansion opportunities are also available to the company.
Banana and Demonstrate have grown rapidly and also acquired some smaller companies along the way. The two companies are independent and separate of each other to ensure the confidentiality of the client and no information is passed between them.
The culture of both companies is also different. Banana’s culture is that it is a no-nonsense company with a clear structure and focus on the operational efficiency. However, Demonstrate is an artistic and chaotic company, which was also reflected in the offices of both companies.
The main operation of the both companies is mainly in the three areas of field marketing, organization of events and sales support. The company has acquired other small companies and is shifting its direction to provide 360 degree marketing services.
Both, Banana and Demonstrate, share important elements, which include the basic business, ownership and the logistics however, they still have major differences.
Demonstrate and Banana have similar clients however, Demonstrate has a strong position and reputation among nightlife related brands attracting brands like Veuve Clicquot and J&B, which make it an attractive employer for the people with the creative interest. However, Banana has drawn attention away from these sought of international projects.
There are also differences on how both companies approach their clients. The approach of Demonstrate is to over perform on the promise to create better relationship with the clients. However, Banana has the no nonsense approach and is more concerned about the functional aspects of the campaign.
The integration of both companies will create problems for the Banana group due to various differences between the two companies.........................
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