THE RAC’s decision to consolidate its research activity has proved a winner for local company Market Equity.
THE RAC’s decision to consolidate its research activity has proved a winner for local company Market Equity.
The RAC research account, understood to be valued at about $500,000, is one of the largest research accounts in Perth.
Market Equity managing director Dean Harris said it was a major win for the business.
The whole account will be managed by Market Equity, which previously had responsibility for just a quarter of the work.
“It’s one of the largest marketing businesses in WA in terms of the size of the customer base,” Mr Harris said.
“Traditionally the RAC spreads its research around. It has made a decision to consolidate that and look for more strategic alliances with its research provider.
“We put forward a model [developed] through working with a number of large partner clients.”
The RAC undertakes a range of research projects aimed at monitoring the performance of its divisions in relation to creating value for members.
Market Equity will engage in brand and tracking services for the RAC to measure the group’s marketing spend and develop strategies to reach other parts of the market.
“Research is important in terms of understanding how advertising works,” Mr Harris said. “Tracking is a continuing measure of aware-ness and how people process the communication.
“We sample people every week. For the RAC we interview 75 people a week and on the basis of that we collect a number of brand health indicators.”
For the marketing professionals who develop the RAC’s marketing material the research can provide insight into potential new areas.
Mr Harris said the research work required a close relationship with the advertising agency, in this case in the Brand Agency.
“We take the results from tracking and overlay this on the timing of the campaign and the investment,” he said.
Market Equity is of the view that advertising works on a number of different levels, he said.
“We’re sensitive to the fact that a certain style of advertising might take longer to work in,” Mr Harris said.
Market Equity also will help the RAC effectively mine the research information it has collated in the past.
“They’re exceptionally data rich and knowledge poor,” Mr Harris said. “That was probably one of the catalysts for looking at a single supplier.
“What we’ll do is not necessarily more research, but bring a different approach and bring everything together.”
RAC head of marketing Tracey Armson said consolidation of the organisations research activities was aimed at achieving greater cost efficiencies.
“With a number of agencies the research was often not in sync,” she said.
“In terms of objectives, this is about consolidating research to drive cost efficiencies.”
