Compass communications was officially acquired by the Smollan group in July 2006. Founder and Business Unit Head of Compass, Debbie Simms explains why she has welcomed the buy-out and what it means for the future...
Q: How are you feeling about this new era you've entered at Compass, no longer being independent but a part of a much bigger business?
D: We're all very excited about the business entering a new phase and flattered that Smollan have recognized our success and potential - that we have built something of value.
Q: What exactly has taken place with the acquisition?
D: Smollan have bought 100% of the business from me, so we are now a wholly owned Smollan business. The structure of the deal however includes an extended Management contract I will personally fulfill. So I will continue to manage the business as before, for the foreseeable future.
Q: So what's changed?
D: In a nutshell - nothing and everything! On a day-to-day basis, nothing. The team and their roles, our services, facilities and network remain in place. Smollan have a non-interference policy, and have granted us the latitude to run the business they way we believe to be best both creatively and operationally.
Fundamentally however everything has changed. We're able to immediately tap into the fantastic technologies Smollan has in place, and are developing on an ongoing basis - as well as the support and collective wisdom of a business that has a seventy-five year track record in retail, and is recognized as being a benchmark operation in the route-to-market business in South Africa. Smollan also has great international connectivity, which we know will enrich our product development and creative offerings and opportunities going forward.
Q: After ten years of independence and building up a business, is selling not a compromise?
D: I see it as the opposite - an incredible opportunity to take the business to the next level - one we might not have reached on our own otherwise. Business is becoming increasingly global and ultra- competitive on every front. Whilst it's been a great journey, it's often also been a lonely and risky one.
Q: What do you see as the specific benefits of Smollan buying you out?
D: There are a pile of them! They are...
With a big brother like Smollan we are poised to go to far greater heights - which would have been much more difficult to attain, and far riskier on our own. Retailers are getting far more organised and savvy in the promotional area, and the trend with large manufacturers is to go the "Preferred Supplier" route, even wholly dedicated business that will service their business on a partnership basis.
Facilitating quality brand activation in and out of store is complex logistically, especially when you are offering a widespread national service. We have tried to limit outsourcing for example, which is commonplace and extensive in this business, but all this means is that you are often left with the "broken-down telephone" syndrome, and the message gets distorted. The passion and brand buy-in is also diluted. Promoting with passion can set you apart, but you need to live and breathe this when your reputation is in the hands of hundreds of people, many of whom you have never met. Promotional work is not very complicated, but its complex - and we have excellent strategic marketing insight and experience, and great Best Practice systems. But we need to plan beyond this, and innovate in an area that is increasingly competitive and creatively challenging.