Theme 4: Seminar: Media World Wide

mk364 - international advertising

INTERNATIONAL ADVERTISING THEME 4: SEMINAR: MEDIA WORLD WIDE CASE HISTORY - THE INFORMATION SOCIETY The Internet, multimedia revolution and information superhighway - these were buzzwords in the 1990s. As G7 leaders gathered in Brussels to discuss the "information society" the question was being asked as to what this global communications network will be able to do, who will have access to it - and who will benefit? The information superhighway has been called both a "yellow brick road" and a "blind alley". It uses e-mail, newsgroups/global bulletin boards and the "worldwide web". It is used in at least two ways: 1. The use of cyberspace to get information e.g. from museums 2. In business terms the "net" provides new ways of selling products and services e.g. Pizza that can be designed by the customer and ordered without speaking to anyone. There are also myriad uses for business-to-business. Politicians would have us believe that this has everything to do with democracy. Britain was in a sense a testing ground - in the franchise areas - but this is not just for consumers. The applications are for industry and commerce also. There was some concern that rural areas would be bypassed by the information superhighway and therefore a need for government intervention, not just leaving it all up to the market. There was obvious concern for intellectual property rights and data protection. There was also concern about the dominance of Microsoft and especially Explorer. Source: "THE MONEY PROGRAMME" BBC 19.2.95 YOUR TASKS:

 Consider the Internet now compared to then  Is it a question of revolution or evolution?  Are concerns about security, credit card crime and so on justified?

seminar3 1 mk364 - international advertising

INTERNATIONAL ADVERTISING

THEME 4: SEMINAR: MEDIA WORLD-WIDE

QUESTION - What have The Simpsons, TV movies, Star Trek, Indiana Jones and bi-directional infrastructure got in common? ANSWER - The Barry Diller factor, that’s what.

By 1993 there was much discussion around fibre optics and the bi-directional infrastructure of television in terms of education, movies, games, information sources, sport and so on. This, it is said, is the future of TV. By the early 1990s 64% of Americans had access to cable and now this figure is even higher but many less well off people, however, do not have access. There is an opportunity for 'programmability' i.e. the ability to interact with consumers' preferences and target toward those preferences. Advertisements, it is predicted, will come in different versions and the consumer will have the ability to choose a Coke advertisement in Italian if that’s what is required. If the consumer decides that he or she is in the market for a car then a message will be provided to match the consumer’s profile. Within this there is some speculation that the 'medium is the message' adage is over. The message, or rather a bit of it, is deliberately created for the medium. All of this means that certain types of people will be able to participate in society, the fear being that some will not.

Aspirational programmes means aspirational advertising and this can be seen as a positive thing as well as a negative one. Some argue that there will be a community that will replace the state/centralised authority by putting the power in the hands of the people - a 'Jeffersonian vision'. Companies such as United Artists and Microsoft are very active in this area, being very interested in the future of interactive TV. Barry Diller is a major player with an impressive CV. He was made Chairman of Paramount Pictures by the age of just 32, having carved out a career that began at ABC but led to the development of made-for-television movies that explored 'social problems' rather than the conventional movie fare. MFT movies were firmly established by 1972 as part of network programming. By this time Diller was just 30 and at 42 he quit Paramount (with Taxi and Cheers among others under his belt) to join Fox Broadcasting to organise a fourth network to compete with ABC, CBS and NBC. This was up-and-running by 1987 and was on 5 nights per week by 1990 with reality programming and, not least, The Simpsons. Diller moved on again with a spell at QVC (and a $25 million share in it) and by 1995 had quit and bought into cable networks. Barry Diller may have failed in his take-over attempt of Paramount but he is probably the Hollywood producer who became concerned with the interactive nature of television. The industry sees him as innovative, a revolutionary, a pioneer, a media evangelist and seemingly a hero of sorts. Diller sees himself as being in the 'everything business'. If the old convergence was 'televisions, computers and telephones', the new convergence is 'information, entertainment and electronic commerce'. Diller seems to be able to move easily between high and low concepts but also believes in computers, that nothing completely displaces anything else (we still have radio, television and video rental). The future will include things that are not about computers or interactivity, such as leisure

seminar3 2 mk364 - international advertising pursuits, but there will be e-commerce, digital technology and cell phones. In the USA and Europe we have seen the success of the DVD and this is set to happen in the Asia- Pacific region in the next few years despite the success of its rival the VCD. Electronic or digital cinema has arrived, another shake-up, reputably as big as the one when 'talkies' arrived, but with digital rather than film on celluloid delivery.

Sources: Adapted by the author from Diller instincts, Los Angeles Magazine, March 1999, www.findarticles.com/cf_lamg/m1346/3_44/; Dan Milmo, Diller the deal maker, MediaGuardian, July 23 2001; Electronic cinema: the big screen goes digital, www.screendigest.com/rep_ecinema.htm (2000). DVD player base to increase five-fold in Asia-Pacific over next four years, www.screendigest.com/rep_ecinema.htm (2003), February 5th.

YOUR TASK: The advent of differing formats is nothing new. The expectation is that science and technology will on a continual basis provide new and exciting ways to communicate and so on. What is new is the convergence of information, entertainment and e-commerce. Explore what you think Diller means by this as opposed to the old convergence of televisions, computers and telephones. Explore where interactivity might fit into this.

INTERNATIONAL ADVERTISING THEME 4: SEMINAR: MEDIA WORLD WIDE Thomas, Bella, (2003). World TV – Global formats, local content www.warc.com/print/77623p.asp TASK: Access this article on warc.com and be prepared to discuss in the seminar http://www.warc.com/Intranet/Northumbria.asp?ID=77623

INTERNATIONAL ADVERTISING THEME 4: SEMINAR: MEDIA WORLD-WIDE MINI CASE HISTORY - MEDIA SELECTION AND PLANNING - SEIKO, `THE WORLD LEADER IN WATCH TECHNOLOGY' "Timepieces have an importance and a fascination that extends far beyond their function of measuring and telling time...they are (also) fashion goods" This is the view of the President of Hattori-Seiko in 1989 and says a lot about Seiko's attitude to its business and hence its advertising strategies. The first quartz watch was introduced in the 1960s with the Ted Bates' slogan `Some day all watches will be made this way'. Design and fashion therefore played a major role and the need for research of the marketing kind recognised. This has led to the establishing of 4 distinct target groups with corresponding brands and marketing effort i.e.: LASSALE - aimed at successful, professional, urban men and women 30-45 years old. This brand offers an exclusive and limited collection of elegant watches - thinness and sophistication, `The modern classic', priced at between $300 and $900. SEIKO - aimed at all men and women. This brand is a range billed as the most complete watch collection in the world featuring design and state-of-the-art-technology with a sporty image. `The world leader in watch technology', prices range from $100-$600. PULSAR - aimed at all men and women but particularly women aged 25-35. Fashionable, collectable, priced from $40-$100. LORUS - Teens/young adults especially 15-30. Functional, sporty `watches for winners' priced at $20-$100. ADVERTISING Clearly linked with sports the Seiko Sport-Tech range has been advertised in international magazines such as Time and Newsweek and also with in-flight magazines using `Man invented time, Seiko perfected it'. Seiko suggest that with their technology now they will start a new revolution. The company appears to have the combined approach of centrally created advertising in Japan but executed nationally. There is a clear and logical link between Seiko and sport and sponsorship for Seiko in sporting areas is not problematic as it is for (say) Marlboro. In terms of media reach, frequency and demographics Seiko used Saatchi in order to understand the impact of international campaigns and sponsorship. They used, for example, Skysport to communicate with a panEuropean target audience. The net result is that Seiko is viewed as having universal appeal and an enduring reputation and was in the top ten of the 1988 Landor Associates power image study alongside Coca-cola, IBM, McDonald's. Main Source: Rijkens, European Advertising Strategies YOUR TASK: Update the Seiko story

INTERNATIONAL ADVERTISING THEME 5 - SEMINAR: INTERNATIONAL ADVERTISING MANAGEMENT MINI CASE HISTORY - PERRIER AND OTHER CRISES Perrier as a brand was very successful during the 1980s. In the UK alone during this period sales grew from 12 million bottles to 200 million. After the `benzene in the water' crisis Perrier can be credited with not making a drama of it. They had, with their UK PR agency Infoplan, prepared well for a crisis. They didn't hesitate to put a damage- limitation exercise in place which involved a telephone facility with trained people to deal with a crisis, Perrier being honest, telling people what had happened, not hiding things, along with the advertising work of Leo Burnett, put the brand back firmly on the market. At the centre of the Perrier response was honesty, telling people what is happening, not hiding anything. Perrier's view of international PR is that its the how the organisation delivers the message that differs, not necessarily the message itself. The proliferation of the media is important as is the various segments which might exist in different markets. REPUTATION Perrier was primarily concerned with reputation. Swift and responsible behaviour including the provision of a 10 line telephone information service ensured a swift return to the 60% share it enjoyed. Perrier were also spurred on by the very good response by callers who both expressed sympathy and the assurance that, at least in 85% of cases, they would return to the brand. This was achieved by the implementation of a £4m UK ad campaign that featured the bottle (as an icon) before returning to the long-running "eau" campaign. The company described this as its ‘welcome back campaign’. The role PR was very much in the classical mould i.e. that of creating a favourable marketing environment for advertising to work more effectively in. Perrier believed that:

 You can't create a good public face for a company that's behaving badly.  A PR stunt is bad PR.  A company should have a director of communications i.e. bring it into the boardroom.  The use of outside agencies/consultants is highly desirable for objectivity.  Objectives must be realistic and attainable.  Campaigns should be monitored and results measured. OTHER CRISES Many other crises have arisen over the years from the Exxon Valdez to Johnson and Johnson's Tylenol to Heinz. Most companies have crises. Many plan for this as best they can by using Scenario Training. SmithKlineBeecham for example have ran scenarios where Ribena has been poisoned. The training involves getting on the news quickly and getting information across. Having the product used publicly. Using credible 3rd parties to endorse it. Removing it from shelves. Destroying it. Solving the problem. Bringing it back. (see Perrier above). TYLENOL, an analgesic brand in the USA, had cyanide supposedly injected into it. J&J's response was to pull all products completely, repackage it and re-launch it. The result was not only retention of customer loyalty but also an expression of increased customer confidence.

BSE. Armstrong (3) suggests the British Government could learn a thing or two about PR from the above examples. The absence of contingency plans for an issue that was bubbling under for years is remarkable. At a very late stage and after CJD evidence Ogilvy and Mather were given £1/4m to stop the rot - probably the clearest case of too little too late to date! Armstrong maintains that a SWOT would reveal a lot about the problems of the Government itself and advocates: 1. Destroy cattle now to save lives (or at least give show potential to) 2. Destroy cattle now because a strong solution is required to solve a strong crisis

See Armstrong's article attached for 8-point PR plan Sources: Executive Business Club "Public Relations" BBC video 1991: Olins, R (1990). Perrier moves fast to keep its sparkle. The Sunday Times 4th March; Armstrong, S. (1996). So much at steak. The Guardian 25th March. YOR TASK: Consider the above and compare this with the very recent Coca Cola/Desani debacle.

INTERNATIONAL ADVERTISING THEME 5 - SEMINAR: INTERNATIONAL ADVERTISING MANAGEMENT MINI CASE HISTORY - CINZANO INTERNATIONAL During the 1980s Cinzano had attempted to market (using advertising as a key element of strategy) on a local basis in the UK. They used a humorous campaign that starred Leonard Rossiter (a British comedy actor of some repute here especially for his performances in TV sitcoms) and Joan Collins, the international film star. This suffered in translation not least of all because humour is a notoriously bad traveller. In response to the campaign's failure (the ads were thought successful by many people but the reality of sales figures was somewhat different) a (British) film director was hired and a small town in Italy was chosen and taken over for the location of the film shoot which was to be the basis of the new campaign. The shoot was controlled from London but overseen from the client's HO in Geneva. The client was persistently on the set. The video history highlights the following international standardisation/adaptation problems:

 CULTURE AND CREATIVITY - the entire creative process can be seen on video. The creativity was handled by "The Creative Business" who's brief involved bringing back a youthful feel to the brand. The danger lay in dealing with young people from diverse culture simultaneously, with one message. The attempt was made therefore to tap a nerve of the (international) younger consumer of the time by using a series of "slice of life" situations.  LEGISLATION - the problems in this area lie in different attitudes toward alcohol consumption. in the UK for example age of participants and aspirational images are important.  CLIENT-AGENCY RELATIONSHIP - the problems in this area are not necessarily to do with the international dimension although as in many business situations there may be communication problems. The client here was particularly keen to be involved, on the set and having an input into the "look" of the film. On the one hand this is understandable given that the client is trying to revitalise the brand after a period of failure. On the other, what's the point of hiring creative people at great expense only to interfere with what you're paying them to do? THE OUTCOME The outcome was a 30 and 60 second version of a piece of communication that attempted to get around the usual problems of crossing national boundaries. This was an attempt to make a Coca Cola-type commercial which would help rebuild the brand using music, atmosphere and a sense of occasion to position the brand - one piece of film which could be adapted very, very slightly, rather like the current Coca-Cola commercial. The 30 second commercial was used on Channel 4 in the UK in a small way but both versions were never used fully. The client dropped the international strategy. Sources: Frayling, C. (1987). The Art of Persuasion. Channel 4 video and series notes; Rijkens, R (1903) Martini case (for comparison of these two major brands). YOUR TASK: Upgrade the Cinzano case for today’s target markets and products and discuss in the seminar

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