It’s nearly a decade since Alison Glander founded Global Sales Development, a consultancy to radio stations.
Since 1994, the company has been acquired, its name changed and business model transformed into a singular promotions agency, only to be whisked back under Glander’s guidance and reworked once again, emerging in the fall of 2000 as a multi-disciplined marketing services firm called PowerPact.
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| ON MESSAGE: Scott Page (l), Alison Glander (r), Ronda Sherman |
The employee-owned agency nearly doubled revenues in 2002 to $6.3 million and reported billings of $11.3 million. Last year it won work from YUM! brands, FX Network, Clorox Automotive (STP and Armor All), Mattel and additional accounts from Procter & Gamble, its second-largest client after General Mills.
President and CEO Glander attributes some of the growth to a project-based structure that stripped the agency of its hierarchical layers and put in place four-person teams — a strategist, developer, servicer and project manager — to work with clients. “It was somewhat controversial,” Glander says. “We looked for and promoted those talents as very different. And when somebody said, ‘Who’s the head of this account?’ we said, ‘You have four heads.’”
Another factor driving growth is a hefty stake in ownership. Seventy of the agency’s 85 employees own a combined 56% of the company, many who labored for the first three-to-six months without receiving any compensation until equity partners were brought in to fund the start up. “To fully participate in the success of the agency goes far beyond taking home a paycheck, because their own success is tied to it,” says Glander, who has a stake in the other 44% of the company, owned by three investment firms.
Of note is PowerPact’s long-term, cause-marketing promotion for Yoplait, a General Mills brand. On-pack promotions, a tie-in with the Komen’s Race for the Cure supporting breast-cancer research and a post-race gathering destination all drive donations for the Susan G. Komen Foundation. A test-drive incentive for Lexus used direct mail with a spa treatment incentive to sell 140 cars, exceeding the goal by 280%.
YUM! Brands selected PowerPact for its research and analytic capabilities, as well as fresh ideas to recruit franchisees for its six brands: Kentucky Fried Chicken, Taco Bell, Pizza Hut, A&W, Long John Silver and Pasta Bravo, says Briyon Stephens, director of franchise development.
The work, started on a project basis using direct mail and radio in selected markets, is now under contract for the year after PowerPact delivered positive response rates, Stephens says. “We were able to refine the message and keep in front of the appropriate people for the best return on our marketing dollars,” Stephens says. “[PowerPact] seemed to grasp what we were looking for.”
PowerPact, with offices in Washington, DC, New York City, Detroit and Richmond, VA, and home offices in 21 cities nationwide, expects a 75% surge in growth this year. “The focus is on managing that bucking bronco,” Glander says.
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