Trsb (b) Case Study 3u2h51
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Volume 15 Issue 2 June 2017 HEC167
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company Case 1, 2 prepared by Normand TURGEON, 3 Alexis LAVOIE, 4 and Julien BERGERON STONGE 5
Preface “Serving clients for whom communicating in the local idiom is crucial and protecting their company’s reputation and brand image is paramount.” 6 In 2015, TRSB updated its marketing plan – and specifically its brand image – to meet the language industry’s new challenges in accordance with this vision.
TRSB s the Big Leagues Over a period of almost thirty years, TRSB grew from a small business to a company with national ambitions, more than 150 employees (see Exhibit 1), and sales of almost CA$20 million. It is worth noting that only 3% of all translation companies worldwide have more than 100 employees. TRSB was able to achieve this growth by developing solid expertise in Quebec’s business community and building a client roster comprised solely of large and very large Canadian companies active in the financial, banking, pharmaceutical, insurance, and technical fields. 7 All of TRSB’s clients have several things in common: their brand image is paramount, they operate in highly regulated industries, and their communications must be flawless. 1
Translation from the French of case #9 10 2017 002B “TRSB (B): Communication marketing 360 ° pour une entreprise de traduction de classe mondiale.”
2
Real case study based on three sources: an interview conducted with Serge Bélair, founder, and Esther Légaré, director of operations; internal istrative documents; and public sources.
3
Normand Turgeon is a professor in the Department of Marketing at HEC Montréal.
4
Alexis Lavoie is a consultant at Lavron Solutions.
5
Julien Bergeron St-Onge is a consultant at Lavron Solutions.
6
Excerpt from an interview with Serge Bélair and Esther Légaré, TRSB president and director of operations, respectively.
7
Samuel Larochelle, “Le Canada, un important marché”, La Presse, September 23, 2014 (page consulted on November 3, 2016).
© HEC Montréal 2017 All rights reserved for all countries. Any translation or alteration in any form whatsoever is prohibited. The International Journal of Case Studies in Management is published on-line (http://www.hec.ca/en/case_centre/ijcsm/), ISSN 1911-2599. This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the istrative situation presented. Deposited under number 9 10 2017 002BT with the HEC Montréal Case Centre, 3000, chemin de la Côte-Sainte-Catherine, Montréal (Québec) H3T 2A7 Canada. This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
TRSB is now a North American leader in the translation industry. For the second consecutive year, the company was named Canada’s largest language service provider by independent market research firm Common Sense Advisory. TRSB offers a comprehensive suite of services, including customized translation and terminology management solutions. Following a complete internal reorganization, TRSB adopted the best practices, tools, and technology systems to successfully compete with increasingly fierce international competition. Workflows were reviewed and project coordinator and associate director positions were created to streamline request handling, mobilize staff, and optimize work processes. TRSB is now ready to the big leagues.
Translation: A Growth Industry In 2015, Quebec’s translation market generated sales of nearly US$2 billion, or almost 8% of global production, valued at US$38.2 billion. Quebec translation companies ed for 50% of all translation done in Canada: 70% from English to French and almost 30% from French to English. 1 Eighty percent of translations were done for the Quebec market. Although Canada was home to just 0.45% of the world’s population, it commanded a 10% share of the global translation market. According to Statistics Canada, consulting firm PricewaterhouseCoopers, and the Les Affaires newspaper, the translation industry was booming, growing at an annual rate of 7.41%. 2 TRSB’s management team realized the vast potential for business development in its sector, but was also aware of many existing and potential threats, some of which would have to be mitigated to minimize their impact.
Threats, Risks, and Business Opportunities New paradigm and price war Computer-aided translation (CAT) is part of a new paradigm emerging in the translation industry. Some CAT tools are more sophisticated than others, but all offer two basic features: • retrieval of previously translated content (translation memory) • access to terminology data banks Major corporations generate masses of documents, their content often being used for a variety of different purposes. The same promotional text, for example, might be used in client brochures, sales rep sell sheets, and the corporate website. Even more commonly, excerpts of a text might be reused for different purposes, or sections of several different documents might be combined to create a whole new text. 1
Larochelle, op. cit.
2
Claudine Hébert, “Les firmes de traduction misent sur le service-conseil”, Les Affaires, May 11, 2013, (page consulted on November 3, 2016).
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Sooner or later, most of these documents are translated. Since clients don’t wish to pay full price for previously translated content, this is where CAT tools come in handy. CAT tools incorporate what is called “translation memory” – a database of all content in both the original, or source, language and the target language. When a CAT tool processes a document, it calculates the number of previously translated words, extracts previously translated sentences or paragraphs from its memory, and incorporates them into the translated text in the appropriate places. The use of CAT tools offers clients several benefits, including terminological consistency, something that is especially important in specialized fields. They also enable both translators and translation agencies to realize efficiency and productivity gains. International competitors move in Major international firms are entering the Canadian market by undercutting the prices of local language-service providers. Large companies such as SDL, TransPerfect, RR Donnelley, and Lionbridge have adopted this approach with some success. While these companies are not known for the quality of their work, price is often a differentiating factor in the translation industry. Developing a new rate structure is one of the challenges facing local translation businesses, whose prices are higher than those charged by international competitors. Many firms in other sectors are also adding document translation to their service offer. Law firms, auditors, and communication agencies have realized that Canada is the El Dorado of translation. In Canada, higher rates can be charged for translation, companies must communicate with their clients and employees in French, and local firms approach these service providers directly, knowing that French/English translations can help them reach a wider market. Emerging countries jump on the bandwagon Emerging countries are now also offering translation services at reduced prices. Chinese companies, for example, are now undercutting competitors with a rate of just $0.05 a word, 1 much lower than that charged by major international firms. This aggressive approach to breaking into the market is seen by some established translation companies as a potentially serious threat. Clients seek new solutions Some companies that opted for a business model including an in-house translation department were faced with soaring operating costs. The necessary investments in infrastructure and equipment along with high labour costs drove them to rethink this approach. The early 2000s thus saw a shift to outsourcing as companies in Quebec and elsewhere began closing their translation departments and turning to translation agencies. In this way, they avoided fixed expenditures and initial investments and paid only for the translation work actually done. Some companies adopted a variation of this strategy: for an unspecified period, rather than send all their outsourced work to a single firm, they sent it to two or three suppliers on a trial basis to rate their performance. While 1
Larochelle, op. cit.
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
the major international players remained in the running because of their aggressive pricing, they were often sidelined by quality issues. Outsourcing enabled companies to focus on their core business. Moreover, in-house translation departments were struggling to keep up with the latest technology and best practices, something translation agencies must do to remain competitive. Internet giants now have a seat at the table Companies such as Google, Microsoft, and Skype are developing translation software. One of their strategic objectives is to push the limits of the technologies they develop. The steady emergence of complex new tools is indicative of the major boom and technological shift now being felt in the translation industry. As reported by CNN Money, Google Translate now covers over 100 languages. 1 These major players are carving out a niche in the industry, and their innovations appear promising. Might this herald possible consolidation in the translation industry? Or does it signal potential disruption caused by progress in the field of artificial intelligence? In short: the pros and cons of a developing market Canada’s unique situation as an officially bilingual country (French/English) means that players in different fields must translate a wide range of documents. The demand for translation services has increased, with economic data showing strong industry growth. 2 Over the past thirty years, many Quebec-based translation agencies have in fact posted explosive growth. 3 We are nevertheless seeing a huge upheaval linked to the development of new technological tools along with new types of service and pricing structures. Some serious questions must be answered. Should human and technological capital be better paired? Should Quebec translation companies seek to gain a decisive competitive advantage over these new players by developing and using the most sophisticated translation tools? Will high-quality, customized translation become a luxury that only major mature companies can afford and be willing to pay for? The arrival of several large multinational players in the Canadian market is also making it difficult for local companies to position themselves. Some industry pundits, including Réal Paquette, president of Quebec’s association of translators, terminologists, and interpreters (OTTIAQ), and Jill Krasny, a U.S. economic journalist, suggest that translation companies should completely reinvent themselves as communication firms focused on developing their clients’ brand through the optimal use of translation software. 4
1
Alanna Petroff, “Google Translate now covers 103 languages”, CNN Money, February 18, 2016 (page consulted on November 3, 2016).
2
Larochelle, op. cit.
3
Larochelle, op. cit.
4
Jill Krasny, “Lost in Translation? There’s a whole industry to help”, Inc.Com, March 25, 2014 (page consulted on November 3, 2016).
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Adapt or Perish! As noted by Darwin in his theory of evolution, a species can only hope to survive and then thrive in the face of a threat by adapting. Darwin’s theory can be applied to many Quebec and Canadian translation companies. In all cases, if they wish to grow, they must adapt. TRSB had begun evolving in 1987 and had successfully transformed numerous challenges into new business opportunities. 1 Faced with its changing market environment, TRSB focused on the following three factors: 1) the quality and targeting of its services; 2) pricing in line with the quality of services offered; and, 3) a corporate structure designed to consolidate and retain the best human resources. By the mid2000s, TRSB had become a translation platform for businesses and translators alike. The new approach worked well since the company faced little competition and offered a superior service. As Bélair notes, “It used to be much easier since companies needed translation services to enter the Quebec market, very few of them had in-house translation departments, and there were no translation tools.” 2 But times have changed, and Bélair believes that three factors contributed to the sudden changes in the industry. 3 Factor #1: Automation through greater use of increasingly specialized tools enabling companies to be more productive while standardizing communications. TRSB is fully aware of the benefits of technological innovation and regularly invests in R & D pilot projects. The pairing of human and machine intelligence nevertheless remains its business model. Factor #2: Market globalization and its corollary: the migration of international translation companies to Quebec. U.S. and European language-service providers know that Canada (with its officially bilingual status) and Quebec are fertile grounds for translation companies. Many large and/or multinational firms in Canada need translation services, and price often seems to be the deciding factor. In the translation market, both decision-makers and influencers play key roles. Decision-makers are primarily English-speakers responsible for making procurement decisions. Focused on business strategies, they are more concerned with cost than with the quality of services provided. Influencers are primarily French-speakers in charge of in-house translation departments who are meticulous and deeply concerned with language quality. They can play an important role in the decision-making process, especially if their company is expanding in Quebec or operates in a highly regulated sector such as the financial or pharmaceutical industry. Communications with such clients can adopt a two-pronged approach: one in English, focused on efficiency, and the other in French, focused on quality. Factor #3: The fact that many Canadian companies have an outdated image of the translation industry and the role of the translator. Translation is often seen as the last compulsory step in the communication process rather than as a strategic lever. The market is fragmented, with suppliers 1
Claude Turcotte, “Un monde à traduire”, Le Devoir, January 21, 2013 (page consulted on November 30, 2016).
2
Ibid.
3
TRST, Client brief, October 2014.
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
differentiating themselves through factors such as pricing strategy, ability to meet tight deadlines, and quality of service. It can take six to eighteen months for a translation agency to sign a new client, with the longest process involving submitting a bid in response to a call for tenders. A translation agency’s communication strategy must thus be ed by “top of mind” 1 positioning along with a message expressing both the quality and the excellent value of the services provided.
2014 Marketing Initiative Bélair wondered how TRSB could set itself apart from its competitors and deal effectively with changing market conditions. He and the company’s senior management team agreed that a good marketing strategy would enable TRSB to maintain its momentum and the annual 20% growth rate it had enjoyed for the past five years. 2 In late 2014, TRSB decided to build an internal marketing communications team. Before then, the company had never had a formal marketing strategy. The majority of TRSB’s clients had come on board through word of mouth generated by the company’s spotless reputation. The marketing team ed the business development team created in 2012. Its role was to help TRSB successfully navigate a changing environment by ing sales and business development efforts. The company identified key communication and differentiation areas that could form the basis of its added value offer to clients. The company had clearly organized its business activities around a translation process focused on quality, exclusive client relationships, and a process designed to ensure that translations met and were adapted to all client specifications (see Exhibit 2). 3 TRSB decided to differentiate itself from bulk translation services, offering existing and future clients consulting services designed to enhance every aspect of their communications. TRSB also aimed to client initiatives in the areas of promoting their brand image.
More Recent Marketing Initiatives As it was making internal organizational changes and adopting a new marketing strategy, TRSB also decided to review its brand. To help differentiate itself from competitors, the company dropped the name Traductions Serge Bélair, replacing it with TRSB. 4 Many people still assume that a translation company consists of no more than one or two isolated individuals. By focusing on the name “Serge Bélair,” the company was cong its 150 employees – translators, linguists, terminologists, and CAT specialists – to oblivion. TRSB also created a new logo adorned with the colour yellow to symbolize its mandate to spotlight its clients’ brand, image, and achievements.
1
The most-ed brand, the first one to come to mind when thinking of a particular industry or category
2
Turcotte, op. cit.
3
Expertise posted on the company’s website at www.trsb.com
4
Turcotte, op. cit.
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
In 2016, with a marketing budget of almost $100,000 (see Exhibit 3), TRSB participated in a number of professional events to increase its visibility in target markets. It attended the APEX Leadership Conference as the event’s official translation sponsor, for example. TRSB is also the official translation services provider of the Investment Funds Institute of Canada, is an d member of CETFA, a Canada-wide exchange-traded funds (ETFs) organization, and attends various trade shows. It adopted a new on-line advertising strategy and built a new website optimized for mobile platforms (see Exhibit 4). TRSB also makes charitable donations to organizations such as Cystic Fibrosis Quebec, Grand Défi Pierre-Lavoie, United Way/Centraide, and the Fondation Paul-Gérin Lajoie. TRSB continues to buy advertising space in a few financial magazines and occasionally in translation industry publications. The company’s PR efforts have paid off, in particular with a lengthy interview with Serge Bélair about the translation industry appearing in a major Quebec newspaper. With its brand image now clearly defined, what does the future hold for TRSB?
For an Even Brighter Future TRSB’s objective is to double its sales over the next five years. To achieve this goal, the company has earmarked $250,000 for its marketing efforts next year, a significant increase over the previous year. Through these marketing efforts, TRSB aims to protect its spotless reputation and avoid any actions that could incite controversy in social media or elsewhere. The of the communication and marketing team are wondering how to promote this new brand image, making it better known and respected in the Quebec and Canadian business communities. TRSB’s marketing personnel will be working to enhance the organization’s presence across all media to increase the company’s visibility and stimulate interest in its services, but they need some advice.
2017-03-09
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 1 TRSB’s Organizational Chart
Serge Bélair (SB) President
Finance/ing team (5)
Business Development and Marketing team (4)
Operations team (6)
IT* and CAT** team (8)
*IT – Information technology **CAT – Computer-aided translation The company’s other employees (±150) are of the production team.
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 2 TRSB’s Business Model – 2014 Key partners
Key activities
Value proposition
• IT and computeraided translation (CAT) tool developers
• Comprehensive management (beginning to end) of the translation process
• Delivering highquality language solutions to the B2B market
• Freelance translators and graphic designers
• Subtitling and studio recording
• IT operations centre
Client relations • Developing a personalized relationship with clients through telephone, e-mail, and face-to-face exchanges • Creating an on-line client portal for ing translation projects and requests
• Simultaneous interpretation Key resources • Project managers
Customer acquisition channels
• Translators / Revisers
Market segments • B2B: Major North American companies doing business in Canada, with varied translation needs (both internal and external) and seeking a long-term relationship, personalized service, and superior quality.
• Referrals/Word of mouth
• Terminologists
• Sales representatives
• Graphic designers
• Marketing activities (professional trade shows, website, advertising, etc.)
• CAT specialists and developers • Sales and marketing personnel • Senior managers
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 3 2016 Marketing Budget Activities
© HEC Montréal
Budget
Trade shows/Conferences
$35,000
Sponsorships
$15,000
Off-line advertising
$15,000
On-line advertising
$20,000
Networking
$5,000
Product promotion
$7,500
Total
$97,500
10
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 4 Statistics on TRSB’s Social Media Presence 1. Audience geography – January to December 2015
Source: Google Analytics
2. Website visitor behaviour – January to December 2015
Source: Google Analytics
3. Top keywords used in search engines (Google, Bing)
Source: Google Analytics
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
4. Ranking of TRSB’s website based on estimated number of visitors
Source: http://www.alexa.com/siteinfo/http%3A%2F%2Fwww.trsb.com
5. Average number of interactions for each TRSB post
(The average number of interactions includes all “likes,” comments, and shared links.) Source: https://www.quintly.com/ (Quintly data, April 13, 2016)
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company Case 1, 2 prepared by Normand TURGEON, 3 Alexis LAVOIE, 4 and Julien BERGERON STONGE 5
Preface “Serving clients for whom communicating in the local idiom is crucial and protecting their company’s reputation and brand image is paramount.” 6 In 2015, TRSB updated its marketing plan – and specifically its brand image – to meet the language industry’s new challenges in accordance with this vision.
TRSB s the Big Leagues Over a period of almost thirty years, TRSB grew from a small business to a company with national ambitions, more than 150 employees (see Exhibit 1), and sales of almost CA$20 million. It is worth noting that only 3% of all translation companies worldwide have more than 100 employees. TRSB was able to achieve this growth by developing solid expertise in Quebec’s business community and building a client roster comprised solely of large and very large Canadian companies active in the financial, banking, pharmaceutical, insurance, and technical fields. 7 All of TRSB’s clients have several things in common: their brand image is paramount, they operate in highly regulated industries, and their communications must be flawless. 1
Translation from the French of case #9 10 2017 002B “TRSB (B): Communication marketing 360 ° pour une entreprise de traduction de classe mondiale.”
2
Real case study based on three sources: an interview conducted with Serge Bélair, founder, and Esther Légaré, director of operations; internal istrative documents; and public sources.
3
Normand Turgeon is a professor in the Department of Marketing at HEC Montréal.
4
Alexis Lavoie is a consultant at Lavron Solutions.
5
Julien Bergeron St-Onge is a consultant at Lavron Solutions.
6
Excerpt from an interview with Serge Bélair and Esther Légaré, TRSB president and director of operations, respectively.
7
Samuel Larochelle, “Le Canada, un important marché”, La Presse, September 23, 2014 (page consulted on November 3, 2016).
© HEC Montréal 2017 All rights reserved for all countries. Any translation or alteration in any form whatsoever is prohibited. The International Journal of Case Studies in Management is published on-line (http://www.hec.ca/en/case_centre/ijcsm/), ISSN 1911-2599. This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the istrative situation presented. Deposited under number 9 10 2017 002BT with the HEC Montréal Case Centre, 3000, chemin de la Côte-Sainte-Catherine, Montréal (Québec) H3T 2A7 Canada. This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
TRSB is now a North American leader in the translation industry. For the second consecutive year, the company was named Canada’s largest language service provider by independent market research firm Common Sense Advisory. TRSB offers a comprehensive suite of services, including customized translation and terminology management solutions. Following a complete internal reorganization, TRSB adopted the best practices, tools, and technology systems to successfully compete with increasingly fierce international competition. Workflows were reviewed and project coordinator and associate director positions were created to streamline request handling, mobilize staff, and optimize work processes. TRSB is now ready to the big leagues.
Translation: A Growth Industry In 2015, Quebec’s translation market generated sales of nearly US$2 billion, or almost 8% of global production, valued at US$38.2 billion. Quebec translation companies ed for 50% of all translation done in Canada: 70% from English to French and almost 30% from French to English. 1 Eighty percent of translations were done for the Quebec market. Although Canada was home to just 0.45% of the world’s population, it commanded a 10% share of the global translation market. According to Statistics Canada, consulting firm PricewaterhouseCoopers, and the Les Affaires newspaper, the translation industry was booming, growing at an annual rate of 7.41%. 2 TRSB’s management team realized the vast potential for business development in its sector, but was also aware of many existing and potential threats, some of which would have to be mitigated to minimize their impact.
Threats, Risks, and Business Opportunities New paradigm and price war Computer-aided translation (CAT) is part of a new paradigm emerging in the translation industry. Some CAT tools are more sophisticated than others, but all offer two basic features: • retrieval of previously translated content (translation memory) • access to terminology data banks Major corporations generate masses of documents, their content often being used for a variety of different purposes. The same promotional text, for example, might be used in client brochures, sales rep sell sheets, and the corporate website. Even more commonly, excerpts of a text might be reused for different purposes, or sections of several different documents might be combined to create a whole new text. 1
Larochelle, op. cit.
2
Claudine Hébert, “Les firmes de traduction misent sur le service-conseil”, Les Affaires, May 11, 2013, (page consulted on November 3, 2016).
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2
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Sooner or later, most of these documents are translated. Since clients don’t wish to pay full price for previously translated content, this is where CAT tools come in handy. CAT tools incorporate what is called “translation memory” – a database of all content in both the original, or source, language and the target language. When a CAT tool processes a document, it calculates the number of previously translated words, extracts previously translated sentences or paragraphs from its memory, and incorporates them into the translated text in the appropriate places. The use of CAT tools offers clients several benefits, including terminological consistency, something that is especially important in specialized fields. They also enable both translators and translation agencies to realize efficiency and productivity gains. International competitors move in Major international firms are entering the Canadian market by undercutting the prices of local language-service providers. Large companies such as SDL, TransPerfect, RR Donnelley, and Lionbridge have adopted this approach with some success. While these companies are not known for the quality of their work, price is often a differentiating factor in the translation industry. Developing a new rate structure is one of the challenges facing local translation businesses, whose prices are higher than those charged by international competitors. Many firms in other sectors are also adding document translation to their service offer. Law firms, auditors, and communication agencies have realized that Canada is the El Dorado of translation. In Canada, higher rates can be charged for translation, companies must communicate with their clients and employees in French, and local firms approach these service providers directly, knowing that French/English translations can help them reach a wider market. Emerging countries jump on the bandwagon Emerging countries are now also offering translation services at reduced prices. Chinese companies, for example, are now undercutting competitors with a rate of just $0.05 a word, 1 much lower than that charged by major international firms. This aggressive approach to breaking into the market is seen by some established translation companies as a potentially serious threat. Clients seek new solutions Some companies that opted for a business model including an in-house translation department were faced with soaring operating costs. The necessary investments in infrastructure and equipment along with high labour costs drove them to rethink this approach. The early 2000s thus saw a shift to outsourcing as companies in Quebec and elsewhere began closing their translation departments and turning to translation agencies. In this way, they avoided fixed expenditures and initial investments and paid only for the translation work actually done. Some companies adopted a variation of this strategy: for an unspecified period, rather than send all their outsourced work to a single firm, they sent it to two or three suppliers on a trial basis to rate their performance. While 1
Larochelle, op. cit.
© HEC Montréal
3
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
the major international players remained in the running because of their aggressive pricing, they were often sidelined by quality issues. Outsourcing enabled companies to focus on their core business. Moreover, in-house translation departments were struggling to keep up with the latest technology and best practices, something translation agencies must do to remain competitive. Internet giants now have a seat at the table Companies such as Google, Microsoft, and Skype are developing translation software. One of their strategic objectives is to push the limits of the technologies they develop. The steady emergence of complex new tools is indicative of the major boom and technological shift now being felt in the translation industry. As reported by CNN Money, Google Translate now covers over 100 languages. 1 These major players are carving out a niche in the industry, and their innovations appear promising. Might this herald possible consolidation in the translation industry? Or does it signal potential disruption caused by progress in the field of artificial intelligence? In short: the pros and cons of a developing market Canada’s unique situation as an officially bilingual country (French/English) means that players in different fields must translate a wide range of documents. The demand for translation services has increased, with economic data showing strong industry growth. 2 Over the past thirty years, many Quebec-based translation agencies have in fact posted explosive growth. 3 We are nevertheless seeing a huge upheaval linked to the development of new technological tools along with new types of service and pricing structures. Some serious questions must be answered. Should human and technological capital be better paired? Should Quebec translation companies seek to gain a decisive competitive advantage over these new players by developing and using the most sophisticated translation tools? Will high-quality, customized translation become a luxury that only major mature companies can afford and be willing to pay for? The arrival of several large multinational players in the Canadian market is also making it difficult for local companies to position themselves. Some industry pundits, including Réal Paquette, president of Quebec’s association of translators, terminologists, and interpreters (OTTIAQ), and Jill Krasny, a U.S. economic journalist, suggest that translation companies should completely reinvent themselves as communication firms focused on developing their clients’ brand through the optimal use of translation software. 4
1
Alanna Petroff, “Google Translate now covers 103 languages”, CNN Money, February 18, 2016 (page consulted on November 3, 2016).
2
Larochelle, op. cit.
3
Larochelle, op. cit.
4
Jill Krasny, “Lost in Translation? There’s a whole industry to help”, Inc.Com, March 25, 2014 (page consulted on November 3, 2016).
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Adapt or Perish! As noted by Darwin in his theory of evolution, a species can only hope to survive and then thrive in the face of a threat by adapting. Darwin’s theory can be applied to many Quebec and Canadian translation companies. In all cases, if they wish to grow, they must adapt. TRSB had begun evolving in 1987 and had successfully transformed numerous challenges into new business opportunities. 1 Faced with its changing market environment, TRSB focused on the following three factors: 1) the quality and targeting of its services; 2) pricing in line with the quality of services offered; and, 3) a corporate structure designed to consolidate and retain the best human resources. By the mid2000s, TRSB had become a translation platform for businesses and translators alike. The new approach worked well since the company faced little competition and offered a superior service. As Bélair notes, “It used to be much easier since companies needed translation services to enter the Quebec market, very few of them had in-house translation departments, and there were no translation tools.” 2 But times have changed, and Bélair believes that three factors contributed to the sudden changes in the industry. 3 Factor #1: Automation through greater use of increasingly specialized tools enabling companies to be more productive while standardizing communications. TRSB is fully aware of the benefits of technological innovation and regularly invests in R & D pilot projects. The pairing of human and machine intelligence nevertheless remains its business model. Factor #2: Market globalization and its corollary: the migration of international translation companies to Quebec. U.S. and European language-service providers know that Canada (with its officially bilingual status) and Quebec are fertile grounds for translation companies. Many large and/or multinational firms in Canada need translation services, and price often seems to be the deciding factor. In the translation market, both decision-makers and influencers play key roles. Decision-makers are primarily English-speakers responsible for making procurement decisions. Focused on business strategies, they are more concerned with cost than with the quality of services provided. Influencers are primarily French-speakers in charge of in-house translation departments who are meticulous and deeply concerned with language quality. They can play an important role in the decision-making process, especially if their company is expanding in Quebec or operates in a highly regulated sector such as the financial or pharmaceutical industry. Communications with such clients can adopt a two-pronged approach: one in English, focused on efficiency, and the other in French, focused on quality. Factor #3: The fact that many Canadian companies have an outdated image of the translation industry and the role of the translator. Translation is often seen as the last compulsory step in the communication process rather than as a strategic lever. The market is fragmented, with suppliers 1
Claude Turcotte, “Un monde à traduire”, Le Devoir, January 21, 2013 (page consulted on November 30, 2016).
2
Ibid.
3
TRST, Client brief, October 2014.
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This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
differentiating themselves through factors such as pricing strategy, ability to meet tight deadlines, and quality of service. It can take six to eighteen months for a translation agency to sign a new client, with the longest process involving submitting a bid in response to a call for tenders. A translation agency’s communication strategy must thus be ed by “top of mind” 1 positioning along with a message expressing both the quality and the excellent value of the services provided.
2014 Marketing Initiative Bélair wondered how TRSB could set itself apart from its competitors and deal effectively with changing market conditions. He and the company’s senior management team agreed that a good marketing strategy would enable TRSB to maintain its momentum and the annual 20% growth rate it had enjoyed for the past five years. 2 In late 2014, TRSB decided to build an internal marketing communications team. Before then, the company had never had a formal marketing strategy. The majority of TRSB’s clients had come on board through word of mouth generated by the company’s spotless reputation. The marketing team ed the business development team created in 2012. Its role was to help TRSB successfully navigate a changing environment by ing sales and business development efforts. The company identified key communication and differentiation areas that could form the basis of its added value offer to clients. The company had clearly organized its business activities around a translation process focused on quality, exclusive client relationships, and a process designed to ensure that translations met and were adapted to all client specifications (see Exhibit 2). 3 TRSB decided to differentiate itself from bulk translation services, offering existing and future clients consulting services designed to enhance every aspect of their communications. TRSB also aimed to client initiatives in the areas of promoting their brand image.
More Recent Marketing Initiatives As it was making internal organizational changes and adopting a new marketing strategy, TRSB also decided to review its brand. To help differentiate itself from competitors, the company dropped the name Traductions Serge Bélair, replacing it with TRSB. 4 Many people still assume that a translation company consists of no more than one or two isolated individuals. By focusing on the name “Serge Bélair,” the company was cong its 150 employees – translators, linguists, terminologists, and CAT specialists – to oblivion. TRSB also created a new logo adorned with the colour yellow to symbolize its mandate to spotlight its clients’ brand, image, and achievements.
1
The most-ed brand, the first one to come to mind when thinking of a particular industry or category
2
Turcotte, op. cit.
3
Expertise posted on the company’s website at www.trsb.com
4
Turcotte, op. cit.
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This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
In 2016, with a marketing budget of almost $100,000 (see Exhibit 3), TRSB participated in a number of professional events to increase its visibility in target markets. It attended the APEX Leadership Conference as the event’s official translation sponsor, for example. TRSB is also the official translation services provider of the Investment Funds Institute of Canada, is an d member of CETFA, a Canada-wide exchange-traded funds (ETFs) organization, and attends various trade shows. It adopted a new on-line advertising strategy and built a new website optimized for mobile platforms (see Exhibit 4). TRSB also makes charitable donations to organizations such as Cystic Fibrosis Quebec, Grand Défi Pierre-Lavoie, United Way/Centraide, and the Fondation Paul-Gérin Lajoie. TRSB continues to buy advertising space in a few financial magazines and occasionally in translation industry publications. The company’s PR efforts have paid off, in particular with a lengthy interview with Serge Bélair about the translation industry appearing in a major Quebec newspaper. With its brand image now clearly defined, what does the future hold for TRSB?
For an Even Brighter Future TRSB’s objective is to double its sales over the next five years. To achieve this goal, the company has earmarked $250,000 for its marketing efforts next year, a significant increase over the previous year. Through these marketing efforts, TRSB aims to protect its spotless reputation and avoid any actions that could incite controversy in social media or elsewhere. The of the communication and marketing team are wondering how to promote this new brand image, making it better known and respected in the Quebec and Canadian business communities. TRSB’s marketing personnel will be working to enhance the organization’s presence across all media to increase the company’s visibility and stimulate interest in its services, but they need some advice.
2017-03-09
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This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 1 TRSB’s Organizational Chart
Serge Bélair (SB) President
Finance/ing team (5)
Business Development and Marketing team (4)
Operations team (6)
IT* and CAT** team (8)
*IT – Information technology **CAT – Computer-aided translation The company’s other employees (±150) are of the production team.
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This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 2 TRSB’s Business Model – 2014 Key partners
Key activities
Value proposition
• IT and computeraided translation (CAT) tool developers
• Comprehensive management (beginning to end) of the translation process
• Delivering highquality language solutions to the B2B market
• Freelance translators and graphic designers
• Subtitling and studio recording
• IT operations centre
Client relations • Developing a personalized relationship with clients through telephone, e-mail, and face-to-face exchanges • Creating an on-line client portal for ing translation projects and requests
• Simultaneous interpretation Key resources • Project managers
Customer acquisition channels
• Translators / Revisers
Market segments • B2B: Major North American companies doing business in Canada, with varied translation needs (both internal and external) and seeking a long-term relationship, personalized service, and superior quality.
• Referrals/Word of mouth
• Terminologists
• Sales representatives
• Graphic designers
• Marketing activities (professional trade shows, website, advertising, etc.)
• CAT specialists and developers • Sales and marketing personnel • Senior managers
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This document is authorized for use only in Dr. Neha Sadhotra's Business to Business Marketing: at Narsee Monjee Institute of Management Studies (NMIMS) from Dec 2019 to Jun 2020.
TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 3 2016 Marketing Budget Activities
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Budget
Trade shows/Conferences
$35,000
Sponsorships
$15,000
Off-line advertising
$15,000
On-line advertising
$20,000
Networking
$5,000
Product promotion
$7,500
Total
$97,500
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
Exhibit 4 Statistics on TRSB’s Social Media Presence 1. Audience geography – January to December 2015
Source: Google Analytics
2. Website visitor behaviour – January to December 2015
Source: Google Analytics
3. Top keywords used in search engines (Google, Bing)
Source: Google Analytics
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TRSB (B): 360° Marketing and Communications for a World-Class Translation Company
4. Ranking of TRSB’s website based on estimated number of visitors
Source: http://www.alexa.com/siteinfo/http%3A%2F%2Fwww.trsb.com
5. Average number of interactions for each TRSB post
(The average number of interactions includes all “likes,” comments, and shared links.) Source: https://www.quintly.com/ (Quintly data, April 13, 2016)
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