1) How do you think that JCDecaux promotes itself?
JCDecaux has become one of the most profitable advertising companies in the world. The group focuses on three divisions of the outdoor advertising market. Their advertising is done by advertising on street furniture provided by the company for the public at almost no costs, by advertising on mediums of transportation, and by advertising on billboards along highways and in the heart of major cities.
JCDecaux manages to promote itself by coming up with ingenious ways of advertising. These methods are advantageous to the general public as they are paid for by the revenue generated from advertising, and therefore free for the users. The invention of the superloo/sanisette has been very successful because of the many advantages these provide. For one, JCDecaux manages to provide a much needed service for the public. The Sanisette are more hygienic than urinals as they can self-clean themselves. Furthermore the sanisette are used by a bigger percentage of the population as these allow both sexes to use them. The success of the sanisette has made the utility very famous among politicians and city mayors, who are keen on providing the same service for their citizens. The sanisette’s popularity helped JCDecaux promote itself as Francis Ford Coppola became a fan of the sanisette, and this helped the company penetrate the US market.
The company also promotes itself through its new technology, which provides better and more advanced possibilities for companies that want to advertise. New technologies such as the Halo light billboards which is part of their “make the brands the hero” strategy. This enables JCDecaux to increase growth and generate more revenue. This growth by itself will promote the healthy attributes of the company and attract more customers.
Bus shelters also provide a service to the users of public transportation, as these provide shelter from the rain and wind. Once again the revenue of the advertising placed on the bus shelters pays for the construction and the maintenance of the latter. 2. Why do you think JCDecaux provides tens of thousands of free bikes that cost around €2,000 each?
The city bike program has become very popular in major cities, as people do not have to worry about the theft of their own property. This program generates revenue for JCDecaux in a few different ways. Because of their popularity, the bikes are rented out by many consumers. However, one of biggest sources of revenue comes from the advertising spot for customers. Another important way the company promotes itself is by advertising is by having their name branded on the utility.
The cost of the bikes and the maintenance are paid by the company. This is beneficial for both the city and the company. In return the company receives absolute control over more than a 1000 billboards. This gives the company a monopolistic position in the outdoor advertising market. These billboards allow the company to reach a wider audience. The profit made by the advertising done through the advertising spots and billboards far outweighs the costs of providing free bikes for the public. Because of its success, similar programs are likely to be set in place in other locations; this promotes the growth of JCDecaux. Therefore, this is a successful strategy! 3. What options for growth do you think JCDecaux might pursue?
Expansion in the outdoor advertising market is tricky as contracts have to be drawn between the company and local authorities. This increases the level of rivalry and competition between the big advertising companies. Emerging economies, such as China, give JCDecaux the chance to expand and take their ingenious ideas to city like Shanghai. As the market in china is growing, there is a huge opportunity for outdoor advertising. The rising income makes it more interesting to try and target the populations of the emerging economies. A market analysis of China would show strong positive trends, making China the perfect location to expand the business. The company is able to benefit from the fact that more and more companies rather advertise outside. One reason for this is that people cannot turn off (or switch channel) these advertisings. With its new technologies, JCDecaux is able to provide premium advertisements which will generate growth for the company.