Pioneering a collaborative business model

Since it was established in 2006, ZAG Brand Invention has pioneered a new way of working with its clients.

Neil Munn, Chief Executive of ZAG, believes that the collaborative approach is highly efficient and empowering for both partners.

"I definitely see partnerships as the way forward. I think there are enormous opportunities for companies in all kinds of sectors to join together to innovate and deploy their skills in new ways," says Neil.

"Too many businesses stick to what they know, when they should be looking above the parapet for interesting new partners and creative approaches."

Building successful partnerships

ZAG goes through a due diligence process when entering into any new partnership, but the company recognises the importance of moving fast and seizing opportunities.

"We aim to be agile and dynamic, and sometimes that means making quick judgements on partnership compatibility so that we don't miss a great opportunity," explains Neil. "You can do all the due diligence you want, but at some stage you just need to close your eyes and jump in."

As in any collaboration, ZAG and its partners have to find a way of working together effectively and addressing any cultural differences, which can be as simple as deciding how best to communicate with one another.

According to Neil, the most important ingredients for success are having shared goals, complementary skill sets and being able to recognise and understand each other's particular areas of expertise.

A long-term approach

ZAG's revenue comes from the new brands that it creates, which it either owns outright or jointly owns along with its partners. When collaborating with existing brands, ZAG invests its time in return for success-based rewards such as equity stakes or a share of profits.

These arrangements mean that although a partnership might not necessarily generate revenue in the short term, it has the potential to deliver greater financial returns over time.

"Our business model involves taking medium to long-term bets. With proper commitment, it can work very well for creative agencies like ours and there's clear potential for the approach to be put into practice in other business sectors too," says Neil.

"Partnership arrangements can happily exist alongside traditional fee-based relationships and in the future, I think we'll see the strongest businesses offering a mixture of the two."

From concept to product

One example of ZAG's collaborative brand invention process is the personal security brand Ila. The ZAG team's research into the personal security market uncovered the fact that one reason why few women carry alarms is because they don't know where to buy them.

To address this, they came up with the concept of the first 'brand name' personal alarm which would be available in mainstream high street shops alongside other personal accessories.

Having developed the brand concept, ZAG pitched the idea to technology company Locca and formed a partnership with them to further develop and manufacture the product.

The outcome was the Ila Dusk alarm, which emits an attention-grabbing female scream instead of the usual siren sound and is now available in Marks and Spencer stores across the UK.

About ZAG Invention

ZAG Brand Invention is an independent business set up by advertising agency Bartle Bogle Hegarty (BBH).

ZAG was established by Nigel Bogle, co-founder and group chairman of BBH, with a view to diversifying BBH's revenue streams beyond the usual transactional business model, where the client pays a fee for the agency's services.

If you would like to learn more about ZAG please contact Neil Munn on 020 7453 4873 or neil.munn@bbh.co.uk