Skip to playerSkip to main content
  • 3 months ago
POP's Global VP, Client Services Lani Carstens was joined onstage by Louise Deane, Marketing Procurement Category Manager at Suntory Beverage & Food Europe for a panel exploring the current state of production engine, the failure of fragmented models, and how the industry is moving to an integrated end-to-end ecosystem.

Among the highlights, Lani pulled back the curtain on our integrated end‑to‑end production model and how it delivers better content that actually drives impact and business results. We’re talking a fully efficiency‑driven model underpinned by AI – from content origination all the way through to measurement.

The big takeaway? The shift from fragmented to integrated production models is happening – and it’s no longer optional. AI is accelerating this transformation, and procurement has become the key enabler in moving ecosystems from siloed to interconnected.

Watch the video to see the whole session!

Category

📚
Learning
Transcript
00:03Good morning, everyone. It's wonderful to be here today. My name is Lylee Carstens.
00:10I'm the Global VP Client Services at Prozon Pixels, also called COP.
00:15And we are Havasus AI-powered global content at scale in the network.
00:20I'm sure you're going to hear a lot about all of that today.
00:23And I'm joined on stage today by Louise Dean, Marketing Procurement Category Manager at Summatory Europe.
00:30Hello, Louise. Lovely to have you with me today.
00:33And talking about Tina's Marketing Procurement Awards, I want to congratulate you on being a finalist in the Honorary Achievement
00:40Awards tonight.
00:41And good luck to all of the entrants and screen. Well done.
00:44Thank you very much.
00:46I'm a little nervous now. I'm really glad to talk to you.
00:48Thank you very much.
00:49I've seen you guys all of you today as well. I'm a munch, you know, great competition, real high calibre.
00:55So I'm just honoured to be part of that finalist list, to be honest.
00:58Well, as they say at the Oscars, it's an honour to be nominated.
01:01Exactly.
01:02So there you go.
01:04So just looking at the context and what we think might be broken at the moment is,
01:10we know that modern content performance models require connected ecosystems and integrated end-to-end production models.
01:18And we know that they accelerate teams, they drive better consistency, they drive better efficiency, all of those lovely things.
01:25But we also know the current reality.
01:28AI, as we have heard and as we will definitely hear more today, is driving production at an incredible space.
01:36And, you know, every week, there's a new tool being launched.
01:40So it's iWatch really fast in terms of the development.
01:44More and more content is being generated.
01:46And by content, I'm saying broadly, you know, content.
01:50It's being generated with a much faster turnaround and speed.
01:54And yet, despite all of that, performance isn't improving the way that brands are expecting it to do.
02:00And in fact, Nick Manning mentioned yesterday that advertising effectiveness is in decline and there's a lot of wastage.
02:07So the truth is fragmented volume-driven production models are no longer really serving us.
02:11So, Louise, what do you think is actually broken in the current model?
02:16And where do you see fragmentation doing the most damage right now?
02:21Yeah, I think fragmentation has been the buzzword over the last couple of days.
02:25So just to kind of echo that, I think, you know, we're seeing so much fragmentation, not just in sort
02:33of the amount of assets or the channels,
02:35but, you know, with the media, the different channels that are out there.
02:37When I started my career 25 years ago now, you know, we had a handful of TV channels, press, outdoor,
02:45you know, that was pretty much it.
02:46Now, you know, we've got so many, like, streaming services, so many different channels, digital, social, so many different formats,
02:57so many different assets needed, but then also now we've got to think about fragmentation of consumers as well.
03:03So we're not just advertising to people anymore, we're advertising to bots, we're advertising to AI agents.
03:10So that has to be brought into the mix as well.
03:14We're also kind of seeing some fragmentation internally within our marketing teams.
03:18I think somebody was talking yesterday around, you know, we don't have to just deal with the marketing team anymore,
03:23we have to deal with the shopper team, with the e-com team, to make sure that we're getting the
03:27holistic view in the overall picture.
03:29So, you know, there's a lot of things, a lot of different touch points, and it's getting bigger and bigger,
03:35it's going faster and faster, it's getting more and more complex all the time.
03:40Even within our marketing teams, internally at Suntory, we have different models.
03:44So we have some brands that have a central marketing team, other brands that are a lead market model,
03:50where we have a lead market, and then those brands are in other markets.
03:53We have other brands where they're just local only, and we also have distribution markets.
03:58So those marketing teams are also all set up differently.
04:01So trying to deal with that is very, very complex.
04:05And I want to actually pick up on that, because I think, you know, we know that content performance requires
04:11a connected ecosystem.
04:12And I want to pick up on the word silo, because it's interesting for us sometimes,
04:16is when we're dealing with brands, they operate very much in silos in terms of their thinking.
04:22And I understand the specialisms have to be sort of siloed and vertical.
04:26But I think where it becomes challenging is they're expecting their agencies to come forward with an integrated solution.
04:33So that's quite challenging.
04:34And from your perspective, what separates organisations that are getting it right for being connected and integrated
04:40from those that are still struggling?
04:42And what are some of the key impacts you see to adopting an integrated solution?
04:46Well, I think procurement can be a real key catalyst in the name below here.
04:51So, as you say, markets are working in silos.
04:55Brands within markets are working in silos.
04:58So quite often our LucasAid brand and our Rabina brand are working on very similar things,
05:02but they're not talking to each other.
05:04Procurement get that kind of holistic view.
05:06We can see across all of the agencies, all of the markets, all of the brands,
05:11and we can see what they're doing.
05:13So we can act as that catalyst and we can bring the teams together
05:16when we know that they're working on similar timescales, similar projects,
05:22they need similar assets, they want to do a shoot at the same time, that kind of thing.
05:26So I think procurement's a real enabler here.
05:28There's something we can really add value to that process.
05:31So you're like the glue that brings it all together.
05:35And then just in terms of, do you think that's a structural issue or more of a mindset shift?
05:40So I'm just trying to get to the nuggets of what, how we can, you know, effect that change.
05:46Is it around behavioural change?
05:48Is it around thinking differently within organisations?
05:51I think it's both.
05:52I think to have any kind of operating model in place, you need strong governance.
05:59And again, that was another buzzword from yesterday, governance is really, really key.
06:03You need to have guardrails, you need to have rules.
06:05You need to know what's being decided centrally and then what can be localised
06:09and what the rules are for that.
06:11How far can the local markets go in terms of localisation?
06:14And so having that governance and those rules in place are really, really key.
06:19It's not just about setting the framework and the model though, because you can have the rules,
06:24but you need to make sure the markets stick to the rules.
06:27So you really need to understand your stakeholders and where the key decision makers lie
06:32because it's all very well putting the framework in place.
06:35But if nobody follows it, it's not going to work.
06:38So that's one part of it.
06:40The other part of it, and it is linked to that, is the people.
06:43So taking people on a journey, putting in place a new process,
06:47putting in place a new ecosystem, you need to take people on that journey with you.
06:52So knowing your stakeholders is super important.
06:54You need to understand what they need, what their pain points are,
06:58how procurement can help and alleviate some of those,
07:01how the process will support in that.
07:04So a lot of it is around change management, it's understanding stakeholders,
07:09and it's taking them on the journey.
07:11So we're working on a project at the moment for transcreation and adaption,
07:16so specifically in the production area.
07:18We have a very fragmented supply base.
07:21We have...
07:23So we have, I think, over 30 different suppliers we're working with across Europe in this area.
07:29And some of them are bolt-ons to another agency that the local one has just gone,
07:34yeah, we'll just use that agency, they can do that.
07:36Other ones, they brought an agency in.
07:37So over 30 suppliers, and when you look at it individually,
07:41each supplier's spend isn't very much.
07:43You know, it's 30k, 80k, 100k.
07:46So procurement haven't been involved in those negotiations, those relationships.
07:51But when you look at it holistically overall, you know, we're talking 1.5 million when you add it all
07:56up.
07:57It's a big number.
07:58It's a big, chunky amount.
07:59And, you know, it's all being managed locally.
08:03It's creating inefficiencies for the marketing teams.
08:06It's, you know, their resource is a priceless commodity at the moment.
08:10They're all stretched.
08:11So we need to take as much of that pain point and as much of that workload from them as
08:17we can.
08:17And so that's why we're looking at putting in a model across all of Europe
08:22to anything to do with adaption, transcreation, small kind of, small adaptions and toolkits and things like that.
08:31So that we can alleviate all of that burden on the marketing team.
08:35Brilliant.
08:36And, of course, we can't have this conversation without talking about AI, right?
08:40There's obviously a huge amount of momentum and quite a lot of noise.
08:44I think we will agree with that.
08:46We know that AI can be, and in our experience, and POP certainly is, a catalyst for change
08:52and in that shift of putting together an integrated production ecosystem.
08:55But where are you actually seeing real value from AI today?
08:59And if I may, where do you think it's being overestimated?
09:04I think we're quite early on the AI journey.
09:06So just to say I'm not satisfied with saying, you know, we're really advanced.
09:09We've done a great job.
09:10We've got it all sorted.
09:11We're still on that journey.
09:14We, I think AI, you know, it's going to be great for things like if we've got product
09:19shops and we need to change backgrounds and that kind of thing.
09:22I think it's going to have some really great opportunities to drive some efficiencies.
09:27I think understanding what your stakeholders need, though, is going to be key.
09:33Before you go out and you get, you know, you see a sexy tool and it's like, oh yeah, we
09:38must, we must use this.
09:39I think you really need to understand what you're trying to achieve first.
09:43So are you looking for a tool that's going to increase the number of assets you can produce?
09:48Are you looking for something that's going to look at creativity?
09:50Are you looking at something that's going to reduce costs?
09:53So really understand what your stakeholders need to achieve and what you need to achieve as a company.
09:58What are the company objectives looking at AI as well?
10:00So firstly, it's about understanding where we are, what we need before you go out having a look at like
10:07getting tools in place.
10:08Because, you know, you want a tool that's going to talk to all those pain points.
10:12You know, we're looking at reducing lead times, we're looking at taking workload out of the marketing team.
10:18So I think it's really understanding what AI can achieve.
10:22And I think when you mentioned about like overestimating AI, I think there's going to be a real temptation to
10:29really explode the number of assets that you have.
10:31Like creating, because you can, hundreds and hundreds of assets, because it's going to be so much easier.
10:38However, you know, that's going to create wastage.
10:41If you don't use the assets you create, that's a waste from my point of view.
10:45So you need to really understand, you know, what the assets are you need and how AI can support that.
10:49And it's also not creating assets for asset's sake.
10:52It's around creativity.
10:53So the kind of work that is really beautiful and really creative, that's going to resonate with your audience, right?
10:58You spoke yesterday about things like food shoots, because I think there are some guardrails around what AI should and
11:03shouldn't be used for as well.
11:05I think the beauty is you can still use beautiful photography to create those food shoots, but then use AI
11:11to change the backgrounds, for example.
11:12So using AI as an enabler rather than replacing the craft, I think that's quite key for us, certainly from
11:20a content production point of view as well.
11:21Yeah, absolutely.
11:23And I think just with any production, the better you can plan it in advance, the better the outcome will
11:28be.
11:29So I think again, Rob was talking about how you don't get long-term plans anymore, you don't get three
11:37-year plans with your CEOs or CMOs.
11:39I mean, we're struggling to get a six-month plan out of our marketing teams at the moment, so that's
11:44kind of a real kind of pain point for us in procurement.
11:48So, yeah.
11:50So trying to plan in advance now for longer-term campaigns, you know, how can I use these assets in
11:56one year, two years, is becoming more difficult just because of the short-termism in the industry.
12:03But the better you can be compared for any kind of production or shoot, so formats, what assets you need,
12:10what seasons are for, you know, where you're going to use them, and then also localisation.
12:16So working, when I used to work at Clarks, we did a lot of shoots and the assets were going
12:21to be used in the Far East.
12:23So they were actually pretty good at it, where they had, you know, you can't show too much skin and
12:26things like that, so they actually had lots of different costume changes for those shoots.
12:30So it's making sure you're really understanding where the assets are going to be used, so you can maximise and
12:36sweat those assets and get the best from the production when you're doing it.
12:39I love that, sweating the assets.
12:41So this sort of shifts production from making loads and loads of content and really just hoping and praying for
12:47the best to kind of a strategic insight-driven solution.
12:51So we recently relaunched, or launched Vimear AI, which has had us as AI-powered gen AI solution developed by
12:59Park.
12:59This enables us to create content that we can reuse, and it's precise, relevant, and impactful.
13:06And again, I think, you know, that resulted in less wastage, as we spoke about.
13:10How do you then, just to finish off on AI, how do you see AI unlocking potential in your current
13:15production system?
13:19So I think it's, for us, I think it's going to be around, you know, we said we've got so
13:24many more touch points, we're trying to create really, really quickly adapt to the market.
13:29And so I think for us, speed to market is going to be a key thing that AI is going
13:33to hopefully unlock for us.
13:36But we are trying to produce more assets, we are trying to make sure we hit all the touch points.
13:42And I think it's the variety of touch points in the now, because everybody wants something unique, everybody wants something
13:46individual.
13:47And I think that's where AI will be able to really support what the markets need.
13:53And just finally, what do you think procurement leaders in the room need to do differently over the next 12
13:58months?
14:00That's a really good question.
14:02But I think it's around, for me, getting to know and understanding your stakeholders' needs.
14:08You know, looking at what the business objectives are, what the business opportunities are.
14:12And really, you know, if you've got that full visibility of what's happening across all your markets, then you can
14:19really put forward some strong ideas for how to have a better process, how to have a better operating model
14:27for production.
14:29So I think that's a key thing.
14:31Again, Rob mentioned growth being a key thing.
14:34For us, you know, traditionally our growth used to come from acquisition.
14:38Now that's been a bit of a shift in focus.
14:40And now for Suntory, growth is coming from increasing volumes.
14:45But they're not giving any extra advertising budget in order to do that.
14:48You know, volumes are directly linked to advertising.
14:51There's no more budget, there's no more resource to support it.
14:54So we're being asked to do bigger, better, faster, more, but with no money, no resource.
14:59So it is a really tough challenge.
15:01So we're going to have to get creative with solutions.
15:05Again, Tina mentioned about influence and things like that, and how the shift is changing.
15:11You know, influencing your stakeholders and convincing them that the operating model that you're proposing is really going to be
15:17key.
15:17So that change management journey is absolutely critical.
15:21Absolutely.
15:22And that's it for us today.
15:24Thank you so much.
15:26I appreciate it.
15:26Thank you so much.
15:32We're just going to seat on …
Comments

Recommended