A new view

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Information about A new view
Business & Mgmt

Published on March 20, 2009

Author: marktylerb

Source: slideshare.net

Description

Lecture given to an EMBA class over in LONDON from The Chinese University of Hong Kong.

EMBA London Residence Week London, July 1999 Mark Brown Board Planning Director Leo Burnett, London

Advertising & Brand Strategies Towards C21st Leo Burnett - who we are Preparing for the New Consumer Age Preparing for the New Digital Age Planning for a New World of Brand Communications Case Study: McDonalds

Leo Burnett - who we are

Preparing for the New Consumer Age

Preparing for the New Digital Age

Planning for a New World of Brand Communications

Case Study: McDonalds

WHO WE ARE

Helped Build Some of the World’s Most Valuable Brands Source: Financial World WHO WE ARE

Build Strong Brand Relationships Our mission is to create deep, enduring relationships between users and brands… With daring, fresh, engaging ideas built on human truths…. To create profitable, long-term growth for your business WHO WE ARE

Our mission is to create deep, enduring relationships between users and brands…

With daring, fresh, engaging ideas built on human truths….

To create profitable, long-term growth for your business

Agency Vision To be an indispensable source of our clients’ competitive advantage WHO WE ARE

To be an indispensable source of our clients’ competitive advantage

In short, Blue Chip Roster of 18 Global Full-Service Clients WHO WE ARE

Proof of Performance in Successful Partnerships Worldwide, over 500 brands ranked #1or #2 Average client relationship is 16 years, vs. industry average of 5.3 years WHO WE ARE

Worldwide, over 500 brands ranked #1or #2

Average client relationship is 16 years, vs. industry average of 5.3 years

We Build Global Icon Brands WHO WE ARE

Billings 1998  $ 6,810 1997  $ 5,980 1996  $ 5,821 1995  $ 5,387 1990   $ 3,585 1985  $ 1,868 1980   $ 635 1970   $ 392 1965   $ 185 1960   $ 117 1955   $ 70 WHO WE ARE

WHERE WE ARE

88 Offices Around the Globe A Network that Networks WHERE WE ARE                                                               

North America WHERE WE ARE Chicago Detroit Los Angeles Miami Montreal New York Toronto       

Chicago

Detroit

Los Angeles

Miami

Montreal

New York

Toronto

Central America Guatemala City Managua Mexico City Panama City San Jose San Juan San Salvador Santo Domingo Tegucigalpa WHERE WE ARE         

Guatemala City

Managua

Mexico City

Panama City

San Jose

San Juan

San Salvador

Santo Domingo

Tegucigalpa

South America Asuncion Bogota Buenos Aires Caracas Lima Montevideo Quito Santiago Sao Paulo WHERE WE ARE         

Asuncion

Bogota

Buenos Aires

Caracas

Lima

Montevideo

Quito

Santiago

Sao Paulo

Amsterdam Brussels Copenhagen Dublin Frankfurt Lisbon London Madrid Milan Oslo Paris Stockholm Zurich Western Europe WHERE WE ARE                            

Amsterdam

Brussels

Copenhagen

Dublin

Frankfurt

Lisbon

London

Madrid

Milan

Oslo

Paris

Stockholm

Zurich

Athens Bratislava Bucharest Budapest Istanbul Kiev Moscow Prague Riga Sofia Tallinn Vienna Warsaw Zagreb Central and Eastern Europe WHERE WE ARE                            

Athens

Bratislava

Bucharest

Budapest

Istanbul

Kiev

Moscow

Prague

Riga

Sofia

Tallinn

Vienna

Warsaw

Zagreb

Middle East and Africa Beirut Cairo Damascus Dubai Harare Jeddah Johannesburg Kuwait City Tel Aviv WHERE WE ARE         

Beirut

Cairo

Damascus

Dubai

Harare

Jeddah

Johannesburg

Kuwait City

Tel Aviv

Asia Bangkok Beijing Calcutta Dhaka New Delhi Guangzhou Ho Chi Minh City Hong Kong Jakarta Karachi Kuala Lumpur Manila Mumbai Seoul Singapore Shanghai Taipei Tokyo WHERE WE ARE                  

Bangkok

Beijing

Calcutta

Dhaka

New Delhi

Guangzhou

Ho Chi Minh City

Hong Kong

Jakarta

Karachi

Kuala Lumpur

Manila

Mumbai

Seoul

Singapore

Shanghai

Taipei

Tokyo

Australia Adelaide Brisbane Melbourne Sydney Wellington WHERE WE ARE     

Adelaide

Brisbane

Melbourne

Sydney

Wellington

WHO I AM

S “ Preparing for the New Consumer Age.”

Life at the end of the 20th Century

Life at the end of the 20th Century

 

Science Fact NOT Science Fiction...

Science Fact NOT Science Fiction...

Understanding our world today...

Understanding our world today...

Change

Change

“ When the world changes fundamentally, survival depends on fundamental change.”

“ When the world changes fundamentally, survival depends on fundamental change.”

“ It’s as if several tornadoes were coming together at once. Individually their force might not be very powerful, but together they are awesome.” Robert Tucker, Managing the Future

Consumers are ‘Pulling’ change

Consumers are ‘Pulling’ change

Clients are ‘Pushing’ change

Clients are ‘Pushing’ change

Technology

Technology

No guarantee of future market dominance...

No guarantee of future market dominance...

Alliance Advantage

Alliance Advantage

 

The consumer at the centre of the world

Privatisation of Risk

Contradictory consumer Consumers are more demanding …. but they are also more ‘satisfied’ Consumers are more rational and growing more savvy …. but they are also often confused Consumers say that they like personal approaches …. but remain suspicious of ‘relationship’ marketing techniques

Consumers are more demanding …. but they are also more ‘satisfied’

Consumers are more rational and growing more savvy …. but they are also often confused

Consumers say that they like personal approaches …. but remain suspicious of ‘relationship’ marketing techniques

The old stereotypes don’t work ...

The old stereotypes don’t work ...

Too much choice?

Too much choice?

Everyone is running out of time (% agreeing) 0 10 20 30 40 50 60 70 1991 1993 1995 1997 1998 52% 53% 57% 61% 63% Source: Henley Centre

Prepared to pay to avoid queuing Airport check in 26% Leisure Park 24% Cinema 19% Supermarket 18% Bank branch 11% Source: Henley Centre/First Direct Time & Money Survey

Airport check in 26%

Leisure Park 24%

Cinema 19%

Supermarket 18%

Bank branch 11%

Time as currency Time Pressure Spend time Time as currency Save time Invest time Value for time Time deepening e.g. Driving + making calls + listening to tape/news + escapism

Shift in the balance of power...

Shift in the balance of power...

Risk Averse

Need for trust brands Source: The Henley Centre, Planning for Social Change 1998 Personal responsibility Personal consequences Trust gap Loss of trust Risk Explosion in choice No time No expertise No partners

Consumer strategies for dealing with overchoice.

Consumer strategies for dealing with overchoice.

Few of us are confident we will make the right choice Holiday 56% New car 18% H’hold electrical goods 40% Life insurance 16% Car insurance 35% Home computer/PC 16% Travel ticket 34% Health insurance 14% Home insurance 28% Mortgage 12% General banking 22% Investment products 12% Source: Henley Centre Teleculture Futures

Holiday 56% New car 18%

H’hold electrical goods 40% Life insurance 16%

Car insurance 35% Home computer/PC 16%

Travel ticket 34% Health insurance 14%

Home insurance 28% Mortgage 12%

General banking 22% Investment products 12%

A market dominated by scares 0 10 20 30 40 50 60 70 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 I am never sure food is safe to eat I would pay more for food with no additives Source: Henley Centre

Dealing with overchoice

Dealing with overchoice “ I’m not going to listen (to authorities), I’ll just do whatever I feel” Disengage

“ I’m not going to listen (to authorities), I’ll just do whatever I feel”

Disengage

Dealing with overchoice “ I’m not going to listen (to authorities), I’ll just do whatever I feel” Disengage “ The whole system is rotten, and we have to replace it” Alternative Philosophy

“ I’m not going to listen (to authorities), I’ll just do whatever I feel”

Disengage

“ The whole system is rotten, and we have to replace it”

Alternative Philosophy

Dealing with overchoice “ I’m not going to listen (to authorities), I’ll just do whatever I feel” Disengage “ The whole system is rotten, and we have to replace it” Alternative Philosophy “ If brand X does it, it must be OK” Prophet Seeking

“ I’m not going to listen (to authorities), I’ll just do whatever I feel”

Disengage

“ The whole system is rotten, and we have to replace it”

Alternative Philosophy

“ If brand X does it, it must be OK”

Prophet Seeking

Dealing with overchoice “ I’m not going to listen (to authorities), I’ll just do whatever I feel” Disengage “ The whole system is rotten, and we have to replace it” Alternative Philosophy “ If brand X does it, it must be OK” Prophet Seeking “I just want the facts” DIY Expert

“ I’m not going to listen (to authorities), I’ll just do whatever I feel”

Disengage

“ The whole system is rotten, and we have to replace it”

Alternative Philosophy

“ If brand X does it, it must be OK”

Prophet Seeking “I just want the facts”

DIY Expert

Modes serve as guides to consumption

Stores can’t meet the demand for organic food

Decision delegation...

Decision delegation...

Prepare for the age of the never satisfied consumer ...

Prepare for the age of the never satisfied consumer ...

Empowered consumers ...

Empowered consumers ...

Personal Power @.com

Personal Power @.com

The dawn of the New Consumer Age

The dawn of the New Consumer Age

Real time responsiveness

Real time responsiveness

No hassle convenience

No hassle convenience

Discounting

Discounting

“ Share what you know. Learn what you don’t. Consumer reporting from actual consumers.”

“ Share what you know. Learn what you don’t. Consumer reporting from actual consumers.”

Mass customised choice

Mass customised choice

Ultra-service

Ultra-service

World-class quality

World-class quality

Charter of demands for the New Consumer Age

Charter of demands for the New Consumer Age

A growing minority?...

A growing minority?...

 

Unprecedented choice

Unprecedented choice

Simplification of choice “ One effect of fragmentation of consumer markets is that consumers become paralysed for choice. Faced with a jungle of choices, consumers will return to brands they trust.” Source: John Naisbitt

“ One effect of fragmentation of consumer markets is that consumers become paralysed for choice. Faced with a jungle of choices, consumers will return to brands they trust.”

 

“ Brands as signposts ….”

From Trademark to Trustmark

Trust Management

Who do you trust?

Who do you trust to be honest and fair? Source: Henley Centre, Frontiers ‘99 (Eur8) 64 33 10 6 39 35 31 29 17 0 10 20 30 40 50 60 70 Your doctor Philips Sony Your church Danone Coca Cola McDonalds Current government Multinationals

 

The opportunity for brands Loss of Trust & No Partners + Explosion of Choice & No Expertise + Personal Responsibility & No Time

Loss of Trust & No Partners

+

Explosion of Choice & No Expertise

+

Personal Responsibility & No Time

Brand evolution Source: Aaker; Frontiers 98/99 Brand as product Brand as user image Brand as personality Brand as organisation

Future brand evolution Source: Aaker; Frontiers 98/99 Brand as product Brand as user image Brand as personality Brand as organisation Brand as relationship Brand as life manager Brand as trust guide

The consumer at the centre of the world

Conversation between the customer and the brand

Brands are ideas ...

Brands are ideas ...

Inform, Entertain… SELL

Inform, Entertain… SELL

“ A good basic selling idea, involvement and relevancy of course are as important as ever …”

“… but in the advertising din of today, unless you make yourself noticed and believed, you ain’t got nothin’.”

S “ Preparing for the New Creative Age.”

Impact of technology on advertising communications

Impact of technology on advertising communications

From a monologue to a dialogue world...

From a monologue to a dialogue world...

Understand the new digital media...

Understand the new digital media...

Immediacy and impact...

Immediacy and impact...

The fourth era: The Creative Age

The fourth era: The Creative Age

“ This is the age of creativity because that’s where new technology wants us to go next.” John Kao, Jamming

Exploiting new technology...

Exploiting new technology...

The age of golden opportunity...

The age of golden opportunity...

An industry used to change...

An industry used to change...

A vision of the future...

A vision of the future...

 

Convergence...

Convergence...

Information

Information

Information Transaction

Information

Transaction

Information Transaction Communication

Information

Transaction

Communication

Information Transaction Communication Entertainment

Information

Transaction

Communication

Entertainment

One core idea of and about the brand...

One core idea of and about the brand...

Brands will become more powerful in the digital world...

Brands will become more powerful in the digital world...

Velocity in advertising and communications

Velocity in advertising and communications

Planning for a New world of Brand Communications S

“ Markets change faster than marketing…” Kotler

C21st

“ The industry will change…”

“ The industry will change…”

“ Advertising will only be part of what we do...

“ Advertising will only be part of what we do...

“ Change or die…”

“ Change or die…”

GROWTH

 

 

Four benefits of a strong brand 1. Competitive shield

1. Competitive shield

Four benefits of a strong brand 1. Competitive shield 2. Elevates the buying decision

1. Competitive shield

2. Elevates the buying decision

Four benefits of a strong brand 1. Competitive shield 2. Elevates the buying decision 3. Provides a bridge to other markets

1. Competitive shield

2. Elevates the buying decision

3. Provides a bridge to other markets

Four benefits of a strong brand 1. Competitive shield 2. Elevates the buying decision 3. Provides a bridge to other markets 4. It’s a powerful glue

1. Competitive shield

2. Elevates the buying decision

3. Provides a bridge to other markets

4. It’s a powerful glue

Collaboration

Thinking within the framework in which problems were created cannot solve problems ….

A simple common goal...

Inform Excite Motivate SELL

Open-systems model

Hard Reality Giant Step

Hard Reality

Giant Step

 

Unconfined by media

 

 

 

 

 

 

Holistic approach - everything contributes

Innovations Leo Direct Hard Reality @leoburnett BRAND Leo Burnett Advertising HOW WE WORK Life Brands The Lab Stars Leo Events Leo Sports

The Brand is at the heart of Leo Burnett The best way to grow a brand is to have a cross-functional Brand Team managing it The Brand Team works with the client to determine the optimum solution for the brand The Brand Team  HOW WE WORK

The Brand is at the heart of Leo Burnett

The best way to grow a brand is to have a cross-functional Brand Team managing it

The Brand Team works with the client to determine the optimum solution for the brand

Case Study: McDonalds

Leo Burnett servicing McDonalds in many areas Brand advertising Promotional Advertising Promotional Merchandise Event Marketing Sponsorship Sports marketing Product development Retail planning Internet

QUESTIONS? That’s all folks

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