When American Honda Motor Co. fired its PR agency of 15 years because of a conflict of interest and recently hired two PR firms to fill the void, the move represented a first-ever PR model for the car company.
At the end of February, Torrance, Calif.-based Honda terminated its relationship with Fleishman-Hillard because FH had pitched and won an American Automobile Manufacturer's Association account, PR NEWS has learned.
At a price tag that's valued at more than $1 million a year, Honda hired two firms, Rogers & Associates, Los Angeles, and The Hawthorn Group L.C., Alexandria, Va., to head PR and public affairs on a collaborative basis, says Kurt Antonius, senior manager/corporate PR for American Honda Motor Co. The team also will handle PR for Honda North America, a subsidiary with offices in Washington, D.C.
The relationship is unique because the companies will coordinate their efforts and work on projects together, even setting up one billing system that staffers at both firms will use. Typically, PR agencies work more independently and according to discipline (media relations, crisis management, etc.) when outsourced by major corporations.
Making Friends the Ally Way
Honda's move epitomizes PR's reliance on partnerships and alliances, which are taking on many roles to help grow PR agencies and vendors in this arena.
Consider eWatch Inc., a company that at its inception more than three years ago was on the bleeding - not leading - edge of technology because tracking online buzz then seemed more newfangled than progressive.
At its helm is James Alexander. His specialty is selling Internet monitoring to gauge stakeholder perceptions of companies, but his power du jour is his ability to hunt down PR partnerships.
On May 20, eWatch inked a deal with Weber Public Relations Worldwide which is promoting Alexander's company to clients such as 3Com [COMS] and Sybase [SYBS], according to David Moon, senior VP of technology and applications management at Weber Worldwide, Chicago.
EWatch's proprietary monitoring system, which costs between $295 and $780 a month, is being offered to Weber wholesale. Weber, in turn, has packaged eWatch's capabilities into its technology applications - in essence, Weber is selling eWatch for Alexander.
"This is a tremendous value for a firm like ours," Alexander says. "We don't have to have those [sales] feet on the street."
Although Alexander won't reveal the wholesale break Weber gets, both sides say the deal's sweet because it helps Weber better monitor online information for heavyweight clients (execs won't say which ones) and allows eWatch to promote its name to potential clients.
Partnering on the Vendor Front
Using the packaging of services as the foundation for partnerships is also gaining a stronghold as companies which support those in PR seek new ways of leveraging their business.
For example, the small Lanham, Md., software shop Capitol Hill Software is building its reputation through partnerships that its marketing VP Kay Heiberg has sought out over the past six months.
During both trial and long-range partnerships with major players such as US Newswire and media analysis firm CARMA, Capitol Hill is able to showcase its automated PR and media relations software because third-party vendors' services are being integrated into Capitol Hill's capabilities.
For example, CARMA offers Capitol Hill's software to clients for tracking and enhancing its media analysis reports.
The deals Capitol Hill uses vary, but Heiberg says one of the most attractive for both parties is when little money has to be exchanged.
In some cases, if a Capitol Hill Software salesperson passes on a lead to a Capitol Hill partner and helps cement a business deal for that client, that staffer receives a commission from the partner company.
As with the partnerships mentioned before, this is another way Capitol Hill enhances its relationship with its clients. (Honda, 310/783-3171; R&A, 310/552-6922; Hawthorn, 703/299-4499; Weber, 617/520-7009; eWatch, 914/288-0000; Capitol Hill Software, 301/459-2590)
Honda Deal Created By Competing Firm
The Honda deal isn't only interesting because of how the two PR firms will work together but because of how it came about. Honda hired an independent consultant, Jerry Swerling, Marina Del Rey, Calif., who initially contacted Rogers & Associates to see if they were interested in pitching the account.
During that conversation, Swerling questioned whether the firm would be averse to working with an agency in D.C. so the company could have a presence in the nation's public/government affairs hotbed.
In turn, R&A - not Honda - spent weeks researching the top firms in the D.C. region and after narrowing down its choices, met with The Hawthorn Group. The two then pitched Honda together.