Untitled
The thesis aims to identify the challenges and opportunities for Idea Prima, UAB in
attracting international clients and to provide managerial solutions for improvement of the
situation. The following objectives were set to meet the aim of the thesis: 1) to analyze the
internal and external situation of Idea Prima, UAB thoroughly; 2) to study academic literature
about the importance of international clients and ways to attract them in academic literature
review; 3) to conduct empirical research to find what is essential for international companies
when selecting a communication agency; 4) based on the findings, provide the managerial
solutions for Idea Prima, UAB in overcoming obstacles and using the opportunities to attract
international clients. A qualitative research method was used, and ten semi-structured
interviews were conducted with two respondents’ groups: 4 with potential international
clients and 6 with existing international clients. Managerial recommendations for the agency
include increasing brand awareness through communication on social media, personal
branding of employees, initiatives for international clients, and increasing the website’s
efficiency through adding English language, recommendations theme, constant updates, and
optimization, using SEO tools. Furthermore, operational and budget plans for Idea Prima,
UAB in 2024 are provided. Additional managerial solutions include a direct approach and
revision of the pricing to attract international clients.
Keywords: Idea Prima, communication, agency, international, clients
Number of words: 15545
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Table of Contents
Introduction....................................................................................................................7
1. Situation Analysis ......................................................................................................9
1.1. Internal Analysis..................................................................................................9
1.1.1. Marketing Mix of Idea Prima .....................................................................10
1.2. External Analysis...............................................................................................13
1.2.1. PESTEL Analysis .......................................................................................14
1.2.2. Competitor Analysis...................................................................................16
1.2.3. SWOT Analysis..........................................................................................19
1.3. Literature Review..............................................................................................21
1.3.1. Aida Model .................................................................................................22
1.3.2. The Process of Selecting the Communication Agency...............................23
1.3.3. Pros and Cons of Working with International Clients................................23
1.3.4. Hofstede’s Cultural Dimensions.................................................................24
1.3.5. Building a Working Relationship ...............................................................25
1.4. Conclusions of Situation Analysis.....................................................................25
2. Empirical Research ..................................................................................................27
2.1. Aim and Objectives of the Empirical Research ................................................27
2.2. Theoretical Foundations of the Empirical Research .........................................27
2.3. Research and Data Collection Methods............................................................28
2.4. Data Collection Process ....................................................................................28
2.5. Research Samples and Sampling Procedure .....................................................28
2.6. Explanation of the Research Instruments Used.................................................29
2.7. Data Analysis Methods......................................................................................30
2.8. Empirical Research Results...............................................................................30
2.8.1. Profile of The Respondents ........................................................................30
2.8.2. Selection of Communication Agency .........................................................31
2.8.3. Partnership with Communication Agency..................................................36
2.8.4. Other Comments.........................................................................................39
2.9. Conclusions of the Empirical Research ............................................................39
2.10. Limitations of Empirical Research..................................................................39
3. Managerial Solutions...............................................................................................41
3.1. Increasing Brand Awareness .............................................................................41
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3.1.1. Communication on Social Media ...............................................................43
3.1.2. Personal Branding.......................................................................................46
3.1.3. Initiatives for International Clients.............................................................48
3.2. Increasing Efficiency of the Website................................................................49
3.2.1. Language of the Website.............................................................................50
3.2.2. Recommendations Theme on the Website..................................................50
3.2.3. Constant Updates of the Website ................................................................51
3.2.4. Website Optimization (SEO)......................................................................51
3.3. Operational Plan for Attracting International Clients .......................................51
3.4. Budget plan for Idea Prima in 2024 ..................................................................53
3.5. Additional Recommendations...........................................................................54
3.5.1. Direct Approach..........................................................................................54
3.5.2. Pricing Revision .........................................................................................55
Conclusions..................................................................................................................56
References....................................................................................................................58
Appendices...................................................................................................................63
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List of Tables
Table 1 Sales Revenue of Twenty Selected Agencies, 2021-2022 ............................................16
Table 2 Net Profit (Loss) of Twenty Selected Agencies, 2021-2022.........................................17
Table 3 SWOT Analysis of Idea Prima, UAB...........................................................................20
Table 4 Research Instrument....................................................................................................29
Table 5 Profile of the Respondents...........................................................................................30
Table 6 Social Media Analysis of Idea Prima, UAB in 2023...................................................41
Table 7 Content and Schedule for Social Media in 2024.........................................................44
Table 8 Proposal for Ambassadors Program in 2024..............................................................46
Table 9 Proposal for Initiatives for Clients in 2024 ................................................................49
Table 10 Website Analysis of Idea Prima, UAB.......................................................................49
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List of Figures
Figure 1 Annual Turnover and Net Profit of Idea Prima, UAB, 2020-2022...........................10
Figure 2 Structure of Idea Prima, UAB, 2023 ........................................................................12
Figure 3 Market Share of Idea Prima, Fabula ir Partneriai, INK agency, Integrity PR in 2022
..................................................................................................................................................19
Figure 4 Aida Model ................................................................................................................22
Figure 5 Hofstede’s Cultural Dimensions................................................................................24
Figure 6 Indicators When Selecting a Communication Agency...............................................34
Figure 7 Gannt Chart for Attracting International Clients .....................................................53
Figure 8 Budget plan for Idea Prima, UAB in 2024................................................................54
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Introduction
Relevance of the Topic
In a thriving and competitive market, businesses need to stand out and handle the
competition in order to succeed. One way to do that is by understanding clients (Hausman,
2022). To get to know the target audience, businesses must be aware of the issues they could
face, the messages that could encourage them to make a decision, factors influencing that
decision, and benefits that excite them (ibid). Furthermore, for companies to gain a
competitive advantage, it is crucial to focus on public relations, which increases credibility,
social perception of the brand, and results in sales (5W Public Relations, 2022).
Idea Prima is an integrated communication agency solving private and public sector
clients’ internal and external requests for communication, marketing, and events. Idea Prima
offers public and media relations, social marketing, visual communication, event organizing,
and integrated communication services. Furthermore, the agency consults clients regarding
efficiency, strategy, reputation, and how to communicate in crisis. Despite the competitive
market, Idea Prima has stood out for more than 20 years, having approximately forty
permanent clients.
However, most Idea Prima clients are Lithuanian businesses or governmental
institutions. To gain a competitive advantage in the market, Idea Prima should expand its
clients’ base with international companies. According to the Official Statistics Portal (2022a),
6105 non-financial companies with foreign ownership were operating in Lithuania in 2020.
Additionally, according to Renaldi (2023), one of the advantages of working with
international clients is expanding the client base, which can lead to more potential and
existing clients later on. Moreover, the difference between the Lithuanian price rate of
communication services and other countries may positively affect income as international
clients may pay more for the services (Darlington, 2018). Therefore, to grow, Idea Prima
should take advantage of it to attract international clients.
Research Problem
The research problem is as follows – What are the challenges and opportunities for
Idea Prima, UAB in attracting international clients?
Aim of the Thesis
The aim of the thesis is to identify the obstacles and chances for Idea Prima, UAB in
attracting foreign-owned enterprises operating in Lithuania and to provide managerial
recommendations for improving it.
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Objectives of the Thesis
1. Analyze the internal and external situation of Idea Prima, UAB thoroughly.
2. Study academic literature about the importance of international clients and ways
to attract them in academic literature review.
3. Conduct empirical research to find what is essential for international companies
when selecting a communication agency.
4. Based on the findings, provide the managerial solutions for Idea Prima, UAB in
overcoming obstacles and using the opportunities to attract international clients.
Research Methods
A qualitative research method was used, consisting of ten semi-structured interviews
with representatives of foreign-owned enterprises operating in Lithuania. Thus, 4 interviews
were conducted with potential international clients and 6 interviews with existing
international clients of Idea Prima. Also, Idea Prima, UAB internal documents, secondary
data, academic literature, and statistical data were analyzed.
Practical Value of the Thesis
The practical value of the thesis consists of situational analysis studying both internal
and external forces impacting Idea Prima, UAB and qualitative research analyzing what is
essential for international businesses when selecting a communication agency. Moreover,
managerial solutions are written for improvement of the situation. The suggestions can be
used by the agency for further marketing plan development, operational tactics planning, and
budget allocation to attract international clients.
Logical Sequence of the Thesis
1. The situational analysis provides information about the current internal and
external situation of Idea Prima, UAB and the literature review.
2. The empirical research part presents the used methods, instruments, objectives,
sampling procedure, framework and collected results.
3. Managerial solutions refer to the suggestions for Idea Prima to attract international
clients.