ANOMALY CASE STUDY
The case deals with Anomaly, a unique organization that claimed to be not "just an [advertising] agency,an incubator or a brand-strategy shop..." but all of these. It describes Anomaly's business model,including the kind of solutions it provided to clients, the manner in which it earned revenues, and itsemphasis on creating Intellectual Property (IP).
» Identify the forces that are changing the traditional advertising model in today's economicenvironment.» Understand the structure and practices of an innovative firm that is attempting to adapt to the newrealities in advertising.
In March 2009, Anomaly, an advertising and marketing company, launched a line of cosmetics called 'ByLauren Luke' in collaboration with Zorbit Resources Inc. (Zorbit)
and Lauren Luke (Luke), a well-knownbeauty expert.Anomaly, Luke and Zorbit were shareholders in Soho Beauty LLC, the company which managed 'ByLauren Luke'. For this venture, Anomaly had been responsible for formulating the business strategy,category marketing, branding, audience strategy and communications.One of the owners of Anomaly, Carl Johnson (Johnson) explained, "We conceived the business and nowwe manage the overall business. We work as the marketing director and general manager. We overseeeverything from banking, Web and production to design."
Anomaly was established in 2004 in New York by a group of experienced admen. The firm had anunconventional approach to business.Aside from developing marketing campaigns for clients, Anomaly also served as a venturecapitalist/brand incubator who worked with clients or on its own to develop new products and buildnew brands.It aspired to create Intellectual Property (IP) both for itself and its clients, which could be licensed tothird parties for a fee. It did not follow the customary pricing by the hour system followed by most adagencies, choosing instead to enter into customized compensation agreements with its clients. Anomalyalso claimed to have a diverse skill set, as compared to other ad agencies, with specialists in areasranging from product design to mobile technology, on its staff.