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News/Agency doubles its net earnings

/ 06.02.2018

Grundfos outsources its own agency

Danish pump giant Grundfos is exploring new marketing opportunities via a 100% externally operated unit on its own premises – a collaboration agency that is situated locally and acts globally. An Aarhus-based agency has been selected as partner.

Brandbox, Spring, Agency, Grundfos

Grundfos' marketing department is developing rapidly. And as of 1 November 2017, it will lead to a change in the organisational setup. Grundfos' internal advertising agency, BrandBox, will be outsourced to a business partner responsible for building a strong and agile agency on Grundfos' own premises in Bjerringbro.

Following a long process, Grundfos has decided to outsource BrandBox to Agency Spring – one of Grundfos' lead agencies throughout a decade – and its sister agency, SPRING Production, whose Vietnam office will work closely with BrandBox. The idea of outsourcing the internal agency to an external business partner is not new from a global perspective, but in Denmark, it is a rarity.

However, the advantages of this setup are clear to Morten Bach, Grundfos Group VP for Group Marketing and Sales Development:

"Today, we have good collaboration with two external marketing agencies. Additionally, we have an internal agency with a handful of highly qualified employees as well as a number of freelancers," he explains.

"But running an advertising agency is not part of our core business, so we can see several opportunities in making Agency Spring the employer of our staff at our internal agency. For instance, it allows us to expand more rapidly, and we’ll be able to develop our own marketing expertise to better match the digital reality around us.”

"This will make it easier for us to solve tasks that we tend to outsource to a number of external business partners. And of course, our results must also show that we are now combining and streamlining our work”, underlines Morten Bach.

"Remaining at arm’s length keeps us on our toes."

- Peer Brændholdt, CEO Agency Spring

As for Agency Spring, the ambition for BrandBox is clear:

"BrandBox needs to be Grundfos' local agency capable of delivering on a global scale," says Peer Brændholt, CEO of Agency Spring.

"We need to be close to Grundfos, so it feels natural for them to use us for a number of tasks, but at the same time, we need to remain at arm’s length, so we continue to strive to deliver a competitive product at a competitive price.

“We also need to bring new skills to the table on a regular basis, so the employees involved from the start quickly get new colleagues."

 

A firm bridge between Bjerringbro and Vietnam

Agency Spring’s sister agency, SPRING Production, will also benefit from the collaboration. For many years, SPRING Production’s Vietnam setup in Ho Chi Minh City has produced and versioned a wide range of marketing materials for Grundfos. With this collaboration, however, a firmer bridge will be built between Bjerringbro and Vietnam, resulting in even more Grundfos tasks for SPRING Production such as servicing local Grundfos markets.

As a Marketing Implementation Agency, SPRING Production already handles production and implementation tasks with great success for clients such as LEGO, Jysk and Kop & Kande.

In connection with the outsourcing, all current BrandBox employees will transfer to Agency Spring, with Lotte Filskov, strategic consultant at Agency Spring, leading the day-to-day management of BrandBox.

 

 

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