After reading the prompt:
1. Select the best strategic options for dealing with that
situation
2. Provide a rationale for your decision
3. Create lists of additional questions the company
would ask, information the they would need and
factors they should consider in making that decision.
It's been almost three years since The Daily Grind last negotiated a contract for their advertising and marketing, and its current contract term will be up for renewal in three months. Currently, The Daily Grind works with a local agency, Isley+Ava, for the design and production of its branding, signage, collateral, packaging, printed materials and digital assets. The Daily Grind has been happy with the work quality of Isley+Ava, however, the company wants to make sure they're investing their money into the most beneficial marketing and advertising option. Of the following marketing and advertising choices, which one would be in the best interest of The Daily Grind? A.) Sign another contract to stick with their agency. Currently, The Daily Grind has a monthly retainer of $15,000 with Isley+Ava based on 100 hours at a $150 blended hourly rate. If projects go over the retainer, The Daily Grind is charged anything from $60-$250 per hour, depending on the hourly rate of the employee working those hours. Last year, The Daily Grind had four months where they didn't need all of the hours included in the retainer, five months where they went over between $1,500-$3,000 and three months that went over between $3,001-$8,300. The contract also includes a 15% mark up on all materials used (copies, supplies, proofs, etc.), media purchased and third-party vendors used. B.) Bring a copywriter and designer art director on staff permanently. The Daily Grind could also hire a full-time, in-house creative team (consisting of a copywriter and an art director or designer). Securing a creative team with would mean adding two salaries, each between $62,000-$80,000, depending on applicants' experience, plus benefits. Finding candidates would require creating and paying for job postings on several sites as well as updating the jobs page on The Daily Grind's own website. The hiring process would also mean carving out time for multiple members of the leadership team to review resumes and portfolios, reach out to applicants and conduct page on ne Dany Grina's ow Website. The hirin process would also mean carving out time for multiple members of the leadership team to review resumes and portfolios, reach out to applicants and conduct interviews. C.) Use a local team of freelance creatives. One of the district managers knows a freelance copywriter and art director who would be willing to take the Daily Grind on as a client. Brandon and Elizabeth's individual hourly rates are $75, they only charge for the hours they spend and do not charge a mark-up on media purchases or working with third-party vendors. Brandon is really into coffee and has been a customer at The Daily Grind for more than six years, so he's familiar with the brand and excited by the prospect of having the company as a client. They each have over 10 years of experience and their portfolios show a wide variety of solid creative work including several award-winning campaigns
