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Agencies wade into making their own products


When you work for an agency, the jargon buzz-phrase “core competency” tends to pop up every so often. As an agency, what are our core competencies? Is this outside of our core competency? How can we more effectively capitalize on this core competency? 

Speaking of core competencies, some agencies out there have tried to stretch theirs to actually having a hand in owning products. 

Digiday has the story of four agencies that have stepped outside the bounds of helping to market and promote products to actually making, distributing and, yes, marketing products themselves. 

• Omelet LA has partnered with chef Betsy Opyt on a line of peanut, almond and sunflower butters under the Healthy Concepts Food Company. Omelet made “a substantial financial investment” in the product, as well as offering marketing support, according to the article. 

• MRY spun off their proprietary software into Crowdtap, which saw $12 million in venture capital. 

• Red Tettemer O’Connell & Partners has a 50 percent stake in TuB Gin, and is providing support in distribution, sales calls and product production. 

The challenges for these agencies in stepping outside of their core competency tend to mount. Agency leaders point to stretched resources, added stress and added financial burden associated with backing a product.

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