Companies that specialise in one or select number of services have come up, intensifying competition with those that dominated before. KKLogit for example specialises in provision of cash-in-transit services, challenging industry leaders like G4S, Wells Fargo and BM Security Services.
I am always interested in PSC or PMC news in other parts of the world, so here is a story about the market in Kenya of all places. What is really neat about this particular story is the idea of the small companies competing and taking market share from the big companies. That these smaller companies are focusing on a particular niche, and marketing themselves as the best at that particular niche–like cash transits. The larger companies might provide the same service, but maybe not at the same level of quality or cost as a small company can. The larger companies also might not have the support of the local populations, because they might seem like one of those evil ‘foreigner mega-corporations’ coming to take business from the little guy.
This also reminds me of classic Sun Tzu or military strategy where you attack weakness with strength. Another way to look at it is guerrilla warfare for business, and these smaller companies in Nairobi are figuring this out. That they may not be able to compete against a G4S type company directly, but they certainly can compete against G4S in a very specific market. But that smaller company has to be able to prove that they are the better company for these specific deals.
And to be able to prove that they are the better company requires an excellent strategic communications plan, and quality control for services rendered. So with smaller companies that can more easily monitor all aspects of their business, and can be more personal online in places like Facebook, might have an advantage here.
A smaller business might also be more appealing to a client if they are opposed to supporting large foreign corporations. So Walmart might sell watches, but if you can buy the same watch at the same price at a small mom and pop watch shop, that might have even more of a selection of watches than Walmart–then why support that foreign mega-corporation with your business? Or, if that mom and pop watch store is better able to connect with the local population than the mega-corporation, then that will help too. These are the kinds of ‘small guy versus the big guy’ communications and strategies a small company can do in a market like this.
A final note for this article, is that it is filled with the names of some interesting PSC players in Kenya. G4S, KKLogit, Wells Fargo, BM Security Services, Salama Fikira, and Senaca to name a few. Check it out. –Matt
Training at Senaca Security Services in Nairobi. Intense competition in the private security market is pushing service providers to turn to marketing and public relations to boost their visibility in the marketplace. File
Security firms hustle to get noticed
By STEVE MBOGO
August 8 2011
Intense competition in the private security market is pushing service providers to turn to marketing and public relations to boost their visibility in the marketplace.
Previously, firms such as G4S Security, KK Security and Wells Fargo seldom bothered about publicity and often relied on walk-in clients and recommendation from their clients to net in new clients, especially corporate customers.
But competition from the top players and new entrants such as Senaca and more visible Brinks Security has forced a change in strategy and the market leaders are racing to grow and defend their marketshare.
As a result, the firms have set up or an in the process of setting up fully fledged communication departments as arsenal for market growth.
“Competition is getting fierce and for survival we have been forced to go big on marketing and let the market know our products,” says Ms Betty Keitany-Koech, the marketing director at G4S Security.
While the company has had an established marketing and a communications office over the last six years, it has recently set up an external communications office, said Ms Keitany-Koech.
Private security industry has for long depended on human guarding as the main source of revenue. But more sophisticated personal and property security threats coupled with the integration with information technology has resulted in new security solutions.
Communication and marketing departments are seen as ideal drivers of customer education on the new security solutions that because of technology may offer improved security at cheaper cost.
At least three companies, G4S, Senaca East Africa and KK Security have either hired or are in the process of hiring new talent to manage the communications and marketing departments.
“The industry is now more innovative and companies want to market the new innovations that they come up with,” said Senaca CEO, Mr Terry Downes, through the company’s communication department.
He said while previously security companies waited for clients to ask for services, today they are the telling customers that there is this and that security solution that can take care of their needs.
Companies that specialise in one or select number of services have come up, intensifying competition with those that dominated before. KKLogit for example specialises in provision of cash-in-transit services, challenging industry leaders like G4S, Wells Fargo and BM Security Services.
Salama Fikira is providing specialised personal and asset protection services. Senaca has also formed a subsidiary that offers audio-visual solutions like video/satellite enabled vehicle security and remote fencing.
Story here.