SC News
An ad agency for the 21st century
Joe Kiedinger was selling TV media packages in northeast Wisconsin in 2001 and knew there had to be a better way to help customers. "I was pushed to sell media packages I didn't believe in. I got it but I just didn't believe in it," he says.
Sparked by his growing dissatisfaction, Kiedinger eventually decided to open an advertising agency. He and his wife, Danica, launched J. Kiedinger Advertising in Green Bay in June 2002. They started with an account base of several small retailers and Festival Foods, the grocery chain that currently has 12 stores across Wisconsin.
Soon after launching his agency, Kiedinger realized that while he was good at writing ads and placing media he had a lot to learn about marketing. "If I was going to keep a progressive, innovative company like Festival Foods, I felt I had to be innovative myself and understand what made up great marketing."
Kiedinger then began studying successful companies of all sizes, from small mom and pop operations to 650-store retail chains. He says he was determined to identify similarities that successful businesses employed and to create a system that small- to medium-sized businesses could follow to succeed.
After a three-year period of observation and study, Kiedinger introduced the Prophit Marketing System, a customizable, seven-step process to help businesses improve their marketing. He also changed the name of his agency to Prophit Marketing in January 2007. The agency currently has eight employees and capitalized billings of $5 million annually.
According to Kiedinger, what is unique about Prophit Marketing compared to most advertising agencies is that it does not begin a client relationship by focusing on a company's marketing. Instead, it focuses on its culture, which includes leadership and employee behavior.
In the 20th century, Kiedinger says advertising agencies focused mainly on strategy and creative. In the 21st century, though, he underscores the importance of first focusing on culture. "Until culture issues are properly addressed, it's virtually impossible to achieve lasting change in any other areas."
Kiedinger says his team of associates—known as "Prophiteers"—applies servant leadership coaching and employee motivation techniques to help clients achieve lasting cultural change.
"What we have become is a marketing wellness program that combines culture, strategy and advertising. When all three of these align, the output is increased bottom-line profits," Kiedinger says.
To help spread the word about the Prophit Marketing philosophy, Kiedinger relies on several tools. These include "Wisdom on Wednesday," a free online publication that is distributed in 35 states and three countries, and "Road Shows," in which Kiedinger uses his skills as a former cruise ship production singer to teach the Prophit Marketing system through entertainment and instruction.
Two clients that exemplify this philosophy are Festival Foods and Dahl Automotive, a dealership with locations in La Crosse and Onalaska that has used this approach to help it achieve significant operational and sales improvements.
Kiedinger says his agency gained a lot of notoriety for its work with Festival Foods, which faced a critical challenge in recent years with the arrival of several Wal-Mart Supercenters across Wisconsin.
"Advertisers in general shy away from acknowledging the competition, but Festival Foods did just the opposite," Kiedinger says. "We aired commercials in which the owners, Dave and Mark Skogen, openly discussed Wal-Mart. The Skogens then thanked their customers for their longstanding support and promised to continue to serve them with the same level of service as always."
Kiedinger says the ads were so successful that other grocery stores from around the country called asking to see them. He also says that the opening of the Wal-Mart Supercenter in De Pere had the lowest attendance of any grand opening in the company's history.
"Most agencies focus on strategy and then advertising. These two ingredients are necessary, but when you combine a great culture with strategy and advertising—look out!"