Committee Reports::Report No. 24 - The Industrial Development Authority::16 January, 1987::Appendix


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Committee Reports > List of Committees > Dáil > 1987 > Committee on Public Expenditure > Report No. 24 - The Industrial Development Authority

APPENDIX 2 SUBMISSION TO THE COMMITTEE ON PUBLIC EXPENDITURE IDA DOMESTIC ADVERTISING PROGRAMME

9 DECEMBER 1986

OUTLINE		Pages
1.	INTRODUCTION	1
2.	IDA POLICY TOWARDS INDIGENOUS INDUSTRY	2
3.	PREVIOUS ADVERTISING PROGRAMMES	6
4.	THE CURRENT ADVERTISING PROGRAMME	8
5.	SUMMARY	13

1. INTRODUCTION

•AS WELL AS PROMOTING OVERSEAS INDUSTRY, IDA IS TOTALLY COMMITTED TO THE DEVELOPMENT OF INDIGENOUS INDUSTRY IN ALL ITS ASPECTS

•FOLLOWING THE WHITE PAPER - MANY NEW SERVICES/FACILITIES NOW AVAILABLE OTHER THAN CAPITAL GRANTS

•SCALE OF EMPLOYMENT NEEDS DEMANDS NEW APPROACHES BE CONTINUOUSLY DEVELOPED

•ADVERTISING IS BUT ONE ASPECT OF THE OVERALL APPROACH

2. IDA STRATEGY TOWARDS INDIGENOUS INDUSTRY

TWO KEY ELEMENTS:

•DEVELOPING ENTREPRENEURSHIP AND ENCOURAGING THE GROWTH OF SMALL COMPANIES

•SUPPORTING INDIGENOUS COMPANIES TO GAIN COMPETITIVE ADVANTAGE

DEVELOPING ENTREPRENEURSHIP AND ENCOURAGING THE GROWTH OF SMALL COMPANIES

MAJOR INITIATIVES:	•	REGIONALISED SMALL INDUSTRY PROGRAMME
	•	130 STAFF NOW LOCATED TO 8 CENTRES
	•	LOCAL DECISION MAKING UNDER CENTRAL GUIDELINES
	•	IDA CLOSER TO CUSTOMER
	•	GREATER USE OF FEASIBILITY GRANTS
	•	1986 ACT PROVIDED FOR EMPLOYMENT GRANTS, WHICH ARE NOW BEING USED
IMPACT:	•	700 PROJECTS APPROVED FOR SUPPORT BY IDA IN 1985
	•	OVER 400 NEW START-UPS
	•	FIRST TIME JOBS IN SMALL FIRMS AMOUNTED TO 3,100 IN 1985
PROMOTING GROWTH IN EXISTING COMPANIES:	•	NATIONAL LINKAGE PROGRAMME
PROMOTING GROWTH IN EXISTING COMPANIES:	•	PILOT PROGRAMME WITH 18 SMALL COMPANIES TO DEVELOP WAYS TO ACCELERATE GROWTH
	•	TWINNING OF REGIONAL OFFICES WITH OVERSEAS OFFICES TO IMPROVE POTENTIAL FOR SUCCESS IN CERTAIN TECHNOLOGY TRANSFER AREAS
	MAJOR CHALLENGE FOR INDIGENOUS INDUSTRY (+50 EMPLOYEES)
	•	A KEY ELEMENT OF INDUSTRIAL POLICY SHOULD BE THE DEVELOPMENT OF THE INDIGENOUS SECTOR
	•	EMPLOYMENT IN THE MEDIUM/LARGE INDIGENOUS SECTOR HAS DECLINED STEADILY OVER THE PAST DECADE, DOMESTIC MARKET SHARE HAS BEEN LOST TO IMPORTS AND PROFITABILITY (2.5% SALES) IS INADEQUATE
	•	WE HAVE TO IMPLEMENT PROGRAMMES TO BREAK OUT OF THIS VICIOUS CIRCLE SO THAT THIS SECTOR CAN MAKE A CONTRIBUTION TO THE GROWTH OF THE ECONOMY
MAJOR INITIATIVES:
	•	COMPANY DEVELOPMENT PROGRAMME - IDA ACTS AS A CATALYST - PROVIDES FRAMEWORK - SUPPORT FINANCIAL/NON-FINANCIAL BASED UPON COMPANIES STRATEGIC PLAN
	•	FINANCIAL SUPPORT INCLUDES: - CAPITAL GRANTS - R&D AND FEASIBILITY - TRAINING AND MANAGEMENT DEVELOPMENT
	•	NON-FINANCIAL: - COMPANY DEVELOPMENT PROGRAMME - PRODUCT DEVELOPMENT INCLUDING TECHNOLOGY TRANSFER PROGRAMME - IDA DATA BASE
IMPACT:
	•	160 COMPANY DEVELOPMENT PROGRAMMES COMPLETED
	•	MAJOR INITIATIVES IN ACQUIRING NEW PRODUCTS, INCREASING CAPACITY AND EMPLOYMENT AND STRENGTHENING INTERNAL MANAGEMENT SYSTEMS
3	PREVIOUS ADVERTISING PROGRAMMES
	INTRODUCTION
	•	IDA HAS A VERY CLEAR VIEW OF ROLE OF ADVERTISING
	•	ADVERTISING ONLY ONE ELEMENT IN A TOTAL MARKETING STRATEGY

PREVIOUS ADVERTISING PROGRAMMES

IDA HAVE USED ADVERTISING TO CREATE AN AWARENESS LEVEL OF VARIOUS PROGRAMMES TO SUPPORT THE DEVELOPMENT OF THE INDIGENOUS SECTOR. THESE HAVE BEEN SUCCESSFUL. THESE INCLUDE:

-	“LOCAL HEROES - NATIONAL ASSETS”	THIS CAMPAIGN, RUN IN 1984, GAVE EXAMPLES OF SUCCESSFUL SMALL INDUSTRY COMPANIES AND FEATURED THE PROMOTER IN EACH CASE AS A LOCAL “NATIONAL ASSET”. UNDERLYING THEME : INCREASING AWARENESS OF CENTRAL ROLE OF MANUFACTURING SECTOR.
-	“IF YOU’VE GOT THE IDEA - WE’LL GIVE YOU THE SPARK”	THIS CAMPAIGN, RUN IN 1985, INCLUDED BOTH TV AND PRESS ADVERTISING. IT EVOKED IMMEDIATE RESPONSE FROM ITS BROADLY BASED MESSAGE WITH NUMBERS OF TELEPHONE ENQUIRIES INCREASING NOTICEABLY.
-	WOMEN IN INDUSTRY	ADVERTISING AND PROMOTION HAS EVOKED A BIG RESPONSE FROM WOMEN ENTREPRENEURS. NUMBER OF FEASIBILITY STUDIES PROMOTED BY WOMEN UP FROM 100 IN THE PERIOD 1978-83 TO 68 IN 1985 ALONE.
-	LOCAL ADVERTISING TO PROMOTE EVENTS IN EACH REGION	KEY SOURCE OF INFORMATION ON INDIVIDUAL EVENTS

4. CURRENT ADVERTISING PROGRAMME
ADVERTISEMENTS IN THE SERIES (INCLUDING PROPOSED CONCEPTS)

ADVERTISEMENT 1:	TO EMPHASISE THE KEY ROLE OF MANUFACTURING IN THE ECONOMY
ADVERTISEMENT 2:	TO ENCOURAGE MORE YOUNG PEOPLE TO CONSIDER CAREERS IN INDUSTRY (CHANGE THE CULTURE)
ADVERTISEMENT 3:	TO EMPHASIZE COMMITMENT TO THE SETTING UP AND GROWTH OF SMALL INDUSTRIES
ADVERTISEMENT 4:	TO HIGHLIGHT THE NEED FOR NEW PRODUCT DEVELOPMENT VIA TECHNOLOGY TRANSFER, LICENSING AND JOINT VENTURES
ADVERTISEMENT 5:	TO POINT UP THE IMPORTANCE OF NEW PRODUCT DEVELOPMENT AS THE KEY TO GROWTH AND HOW IDA CAN SUPPORT THIS AREA WITH FEASIBILITY GRANTS, ETC.
ADVERTISEMENT 6:	TO EMPHASIZE THE IMPORTANCE OF PROFESSIONALISM IN BUSINESS AND THE NEED FOR STRATEGIC PLANNING, FINANCIAL CONTROL AND MARKETING FOR SMALL BUSINESSES AND HOW IDA CAN HELP THROUGH THE COMPANY DEVELOPMENT PROGRAMME
ADVERTISEMENT 7:	THIS ADVERTISEMENT DESCRIBES THE WIDE RANGE OF IDA ADVISORY AND SUPPORT SERVICES AND EMPHASIZES THAT GIVING GRANTS IS ONLY ONE ASPECT OF IDA’S ROLE

RATIONALE AND OBJECTIVES OF ADVERTISING PROGRAMME

BASIC THESIS

•NEED TO IMPROVE THE RECOGNITION/APPRECIATION OF THE CENTRAL ROLE OF MANUFACTURING INDUSTRY

Example:A typical manufacturing plant employing 100 people spends approximately £4 million in the Irish economy each year

•ENHANCE ITS ATTRACTIVENESS RELATIVE TO OTHER OCCUPATIONS

AUDIENCES

•GENERAL PUBLIC

•BUSINESS COMMUNITY

WHAT IS THE CAMPAIGN DESIGNED TO COMMUNICATE?

TO GENERAL PUBLIC

•PURPOSE IS TO RAISE THE STATUS OF MANUFACTURING AND PEOPLE’S AWARENESS OF THE IMPORTANCE OF MANUFACTURING IN THE ECONOMY

•FOCUS TO ENCOURAGE:

-BEST/BRIGHTEST CONSIDER MANUFACTURING AS A CAREER OBJECTIVE

-PARENTS ENCOURAGE CHILDREN TO CONSIDER OPTIONS

-TEACHERS TO HAVE A HEIGHTENED LEVEL OF AWARENESS

GENERAL BUSINESS

•GREATER AWARENESS/APPRECIATION OF THE NEED TO MODERNISE, DEVELOP AND EXPAND

COMMUNICATE THE RANGE OF NEW IDA SERVICES AND INCENTIVES

•PRODUCT DEVELOPMENT PROGRAMME

•TECHNOLOGY TRANSFER PROGRAMME

•SOLUTION TO INDUSTRY’S PROBLEMS NOT MERELY MORE CASH GRANTS

COST OF PROGRAMME IN CONTEXT

COST OF CURRENT ADVERTISING PROGRAMME IN 1986	£100,000 (Further £90,000 planned in 1987)
IDA CAPITAL AND TRAINING GRANT EXPENDITURE ON INDIGENOUS INDUSTRY	£58.1 million
EXPENDITURE IN 1986 ON THE CURRENT ADVERTISING PROGRAMME IS EQUIVALENT TO 0.17% OF TOTAL IDA GRANT PAYMENTS TO INDIGENOUS INDUSTRY

5.SUMMARY

•CURRENT ADVERTISING CAMPAIGN IS PART OF A CAREFULLY THOUGHT OUT STRATEGY FOR THE DEVELOPMENT OF INDIGENOUS INDUSTRY

•LONG TERM NATURE OF THE CAMPAIGN ANALOGOUS TO THE SUCCESSFUL “YOUNG EUROPEANS” CAMPAIGN OVERSEAS

•GIVEN THE CENTRAL ROLE OF MANUFACTURING AS A SOURCE OF WEALTH AND JOB CREATION, AND THE NEEDS OF THE ECONOMY, IT IS VITAL THAT THERE IS A WIDESPREAD UNDERSTANDING AND SUPPORT FOR THAT ROLE.

•IN THIS CONTEXT, WE LOOK FORWARD TO THE ENDORSEMENT OF THE COMMITTEE MEMBERS FOR THIS CAMPAIGN

APPENDIX 2

SUBMISSION TO THE COMMITTEE ON PUBLIC EXPENDITURE IDA DOMESTIC ADVERTISING PROGRAMME

1. INTRODUCTION

2. IDA STRATEGY TOWARDS INDIGENOUS INDUSTRY

PREVIOUS ADVERTISING PROGRAMMES

4. CURRENT ADVERTISING PROGRAMMEADVERTISEMENTS IN THE SERIES (INCLUDING PROPOSED CONCEPTS)

RATIONALE AND OBJECTIVES OF ADVERTISING PROGRAMME

4. CURRENT ADVERTISING PROGRAMME
ADVERTISEMENTS IN THE SERIES (INCLUDING PROPOSED CONCEPTS)