As the meetings industry ponders the effects of the announced acquisition of mega agency Rosenbluth International by American Express, the aftermath of the 2001 acquisition of McGettigan Partners by Maritz Travel Co. finally has settled, as Maritz has "refined" the role of its subsidiary.
Maritz McGettigan, the new name for the Philadelphia-based subsidiary, primarily will focus on managing meetings and consolidation efforts for pharmaceutical clients, always a key component of McGettigan's client list. That history, combined with new regulations that limit the ability of pharmaceutical companies to entertain doctors and surgeons, led Maritz to "evolve" McGettigan's role to primarily servicing that sector, said Maritz president Jeffery Reinberg. "One of the big reasons for the acquisition was that McGettigan was so established in how pharmaceutical companies run meetings," he said. "Meetings consolidation is on the way to being established in that sector. Maritz McGettigan president and COO Christine Duffy has grown up in that business, and she knows it inside out. She's our pharmaceutical sector leader."
Though Reinberg was quick to note that no unalterable philosophy will be employed in the solicitation and service of new clients, for the most part Maritz McGettigan will handle all meetings and incentive needs, including consolidation and single-event planning, for pharmaceutical companies. Maritz will handle the rest. "This is not cookie-cutter, and it is not stamped on the entire company, saying everything will be organized by sector," Reinberg said. "Given this sector's geographics and McGettigan's focus on that industry, this makes sense. There will be some non-pharmaceutical clients served in Philadelphia, but for the most part they will be served through Maritz's meeting, events and incentives division.
"We still respect the brand and its legacy," he continued. "This is a migration and the next step to there being one Maritz."
The November 2001 acquisition of McGettigan by Maritz
(Meetings Today, Dec. 3, 2001) was at least partially driven by McGettigan's pharmaceutical-heavy client roster, including Corporate Travel 100 members GlaxoSmithKline of Philadelphia and Eli Lilly & Co. of Indianapolis. Given pharmaceutical businesses' relative steadiness in meeting expenditures through economic weakness and terror concerns, Maritz saw that business as a stable source of revenue.
Yet, that industry has changed. In July 2002, the Pharmaceutical Research and Manufacturers Association, the major association for pharmaceutical companies, implemented a code that addressed possible conflicts of interest within industry relationships. Included in those guidelines is specific language governing meetings to which pharmaceutical companies invite physicians to introduce and teach them about new or revised medical products and drugs.
One of McGettigan's charges will be to develop specific products geared to the pharmaceutical industry, in light of those changing regulations. One such piece already has been developed, a software tool that manages dinner meeting and seminar logistics and expenditures. "This is an industry that has high regulation, and everybody involved needs to understand that," Reinberg said. "We need products specific to the behavior of the particular sector. Each has its own identity. The companies involved in this sector don't do everything the same way, but they do have specific needs."
Meanwhile, the industry may be affected by another significant acquisition, that of Rosenbluth by American Express
(see story). That deal still has to be approved by federal regulators, so it is unclear how, or if, Amex will integrate Rosenbluth's meetings offerings with its own American Express Meetings & Incentives division.
Most industry observers said the deal would not have a major impact on the meetings arena, due to Rosenbluth's generally light presence in meetings management. Although Rosenbluth offers meeting planning services, consolidation services through online meeting company PlanSoft's Meeting Management Solutions tool and a new internally developed online tool designed to diagnose weaknesses and opportunities within corporate meeting structures
(Meetings Today, May 12), the company has not been considered a major meetings management player.
"They're not really a major competitor of WTMI today," said Scott Graf, president of WorldTravel Meetings and Incentives. "Clearly, Rosenbluth had a desire to get into this market. We do know American Express is around, though we don't see them around to date. They might intensify." One possible advantage for Amex is the acquisition of Rosenbluth's roster of corporate travel management clients, Graf said. It is possible Amex could get a leg up on those corporate travel clients who have not yet managed meetings or have not selected a supplier to do so; so could WTMI, Graf said.
"Mergers of this type tend to make some customers pleased and some not so pleased," Graf said. "There could be some residual opportunity for them. If WTMI parent WorldTravel BTI gets additional customers out of it, I can see it working for us too."