Suggested agenda

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Suggested agenda

• Introduction to AAI
• Cases in Russia
• Case Studies on Relationship Management

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AAI Consultants in Advertising

• Working for clients, but with agencies
• Helping our clients to find agencies that are
  right for them, and to manage their rosters
• Managing and measuring relationships / improving
  performance / negotiating compensation

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We also play our part in industry affairs

• Working closely with agencies as well as clients
• Helping the marketing communications business
  anticipate and cope with change
• Trying to provide impartial thought leadership

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RECENT AND CURRENT CLIENTS

• AIRMILES
• Bacardi
• BMW
• Cable Wireless
• Cadbury Schweppes
• Campbell Grocery Products
• Chiquita
• Chivas Brothers
• Coca-Cola
• Co-operative Group
• Danone
• Debenhams
• Dell
• eBay
• Electrolux
• Ericsson
• Eurostar / Eurotunnel
• Ferrero
• Gillette

• Lloyds TSB
• McCain Foods
• McDonalds
• Microsoft
• Morphy Richards
• Nestle
• Next
• Novartis
• Pernod Ricard
• Reckitt Benckiser
• SABMiller
• Royal Numico
• SCA
• Shell International
• Sony Ericsson
• Tesco
• Tetley
• Texaco
• Tourism Ireland

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AAI Practice Areas

• Agency Search
• Advertising, Media, Interactive, Direct/CRM,
  Public Relations, Promotion/Events,
  Design/Identity/Branding, Multicultural
• Agency Compensation
• Compensation Review Evaluation
• Compensation Negotiation
• Agency Relationship Management
• Agency Assessment and Relationship Facilitation
• Agency OptimizationAlignment Consolidation
• Marketing Management
• Optimization and Alignment of internal resources
• Best practices in agency/resource management
• The New Media Landscape
• Understanding the new media world
• Managing for Integration

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Case Studies in Russia (2008)

• Perfetti Van Melle PR agency search and
  selection
• Danone TV production budget optimization
• Multon (juice department of Coca-Cola) - Creative
  agency search and selection
• ING Life Media agency search and selection

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Perfetti Van Melle (TM Chupa-Chups)

• Client goal PR agency search and selection for a
  year service
• Problem The pitch was held at the beginning of
  the year. At this period best agencies are
  already overloaded with clients. The budget was
  rather short and it was one more obstacle
• Solution AAI arranged a pitch to select a PR
  agency. 3 local and 3 global agencies reached the
  final stage and were offer to be selected
• Outcome Chupa-Chups signed a contract with local
  agency that offered good conditions and better
  ideas than others. Current agency has perfectly
  satisfied Chupa-Chups needs and requests

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Danone Russia

• Client goal To optimize costs on TV production
• Problem Danone is known as one of the main
  advertisers in Russia and the company spends a
  large sum on high quality TV production. Danone
  was eager to optimize costs on TV production by
  force of holding a pitch and consolidating budget
  between two TV production houses. The quality and
  amount of commercials stays at the same level
• Solution A pitch was held to select two TV
  production houses. AAI conducted a comparative
  price analysis of the Russian market and offered
  costs optimization ways
• Outcome The results could be resumed after
  closing full-year cycle work (June, 2009)

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Multon (TM Rich)

• Client goal Creative agency search and selection
  to launch a new creative strategy
• Problem At that time period all net agencies
  were overloaded with clients or were too
  expensive. Client was eager to find a fresh local
  agency, that has good global brand experience
• Solution We selected 3 appropriate agencies that
  could satisfy current request. Participants final
  offer evaluation will be finished in March 2009
• Outcome The winner of the pitch will start its
  work in 2009

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ING Life

• Client goal To search and select media agency
  for a two-year partnership
• Problem Media agency that was affiliated with
  ING Life at that moment did not satisfy current
  needs. All media plans were standardized and
  could not fully bring to life ING Life goals.
  Russian life insurance market is developing and
  for promoting such service a special media mix is
  quite necessary
• Solution For given pitch AAI has prepared a list
  of media agencies that have perfect experience in
  banking segment
• Outcome After evaluating final offers of the
  participants AAI has chosen Starlink (Starcom
  MediaWest Group). Current media agency has scored
  higher points at each stage of the pitch and
  offered the best media mix strategy

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• Some Case Studies on Relationship Management

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Ericsson and Sony Ericsson

• Nature of project Initial assignment
  (1998-2001) to improve the in-market
  effectiveness of the relationship between the
  then Ericsson Mobile Communications and global
  agency YR
• Client goal Initially to make the companys
  investment in YR pay dividends in the face of
  formidable competition from Nokia, Motorola et al
• Problem The Make yourself Heard campaign
  proved too generic, and the companys policy of
  developing new campaigns for new handsets was
  wasteful. Also YR had difficulty in managing
  their subs
• Solution AAI visited 15 markets over two years
  in an effort to make the YR relationship more
  effective. Despite some improvements, it became
  necessary to pitch the business won shortly
  before the creation of the Sony/Ericsson jv by
  BBH
• Outcome Sony Ericsson succeeded beyond
  expectations and the BBH partnership produced
  galvanic work. But eventually BBH resigned over
  strategic differences and in 2006 AAI oversaw a
  second pitch with the business awarded to
  Saatchi Saatchi

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GSK Consumer Healthcare (2007)

• Nature of project Maximisation of effectiveness
  and value from principal global creative agency
  relationships with Ogilvy and Grey
• Client goal Development of new remuneration and
  evaluation structures
• Problem Local client and agency teams used to
  commission system, and suspicious about move to
  deliverables-based fees
• Solution AAI recommended and helped to implement
  a radical review of modus operandi and scope of
  work. This achieved a buy-in from both client and
  agency to a more disciplined way of working, in
  which agency activities are precisely matched to
  the deliverables client is prepared to pay for.
  Agency management enhanced by adoption of a
  web-based five skill sets evaluation system
  recommended by AAI
• Outcome So far so good!

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Guinness Ireland

• Nature of project Review and reappraisal of
  every aspect of roster and agency management on
  behalf of what at that time (early 90s) was the
  largest marketing dept in Ireland. Ireland is
  Guinnesss 1 market globally
• Client goal Greater efficiency, effectiveness
  and value
• Problem Client was used to being a key client to
  most of the countrys leading agencies. Agencies
  took it for granted that Guinness was a top
  dollar client
• Solution Radical review, resulting in many fewer
  agencies, centralisation of media planning and
  buying, completely new creative development
  process, and massive savings
• Outcome Guinness faced new competitive realities
  (growth of ciders and imported lagers, sea change
  in on and off trade balance) with a far leaner,
  more modern organisation for the development and
  management of marketing communications

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Guinness Africa

• Nature of project Modernisation of Guinnesss
  marketing and advertising in vital but difficult
  African markets. Nigeria alone is Guinness's
  third biggest market
• Client goal World class best practice, with
  agency partners to match standards the brand
  enjoyed elsewhere ability to withstand new
  competition from South African Breweries
  (formerly the companys partner brewer/bottler)
• Problem Marketing and advertising talent is
  limited in West and East Africa. But equally,
  continuing to run the business offshore from
  London was increasingly ineffective and sent
  the wrong signals
• Solution Two phase operation a) co-ordination
  of above and below activity from London, but with
  more in-market activity b) pitched the account
  in South Africa. Saatchi Saatchi were
  appointed. They developed the legendary
  Pan-African Michael Power campaign. AAI also
  negotiated media by barter which significantly
  increased delivery of coverage and frequency. AAI
  also developed and delivered sophisticated
  training modules for marketing departments in all
  African markets
• Outcome Huge success. Unprecedented increase in
  sales. Highest profile Pan-African campaign in
  any category. Guinness marketing communications
  devolved from London to markets

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Pernod Ricard (Chivas Brothers)

• Nature of project Long-term management of Chivas
  Regal relationship and process
• Client goal Pernod Ricard bought Chivas Brothers
  from Seagram in 2002. AAI were retained by the
  new owner, and have now been working alongside
  Chivas Regal lead agency, TBWA 1999-date
• Problem Chivas Regal is a hugely successful
  brand, but it has proved difficult to develop
  long term marketing communications to deliver
  results in very different markets globally
• Solution AAI has been involved in every aspect
  of relationship and process including
  development of new remuneration and evaluation
  systems
• Outcome Increasingly close alignment of client
  and agency goals

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Pernod Ricard (Overall Roster Management since
2002)

• Nature of project Long-term assistance with the
  management of the global agency roster media,
  DM, digital etc as well as creative). In ten
  years Pernod Ricard has progressed from 1 Pastis
  company in France to the worlds 2 wine and
  spirits company
• Client goal Pernod Ricard want to be a best
  practice operator in all aspects of agency
  management
• Problem Pernod Ricard is a deliberately
  decentralised company, with a centre in Paris
  regional, local and category management. There
  are well over 100 country managers. To achieve
  practice and process change on the ground needs
  diplomacy, patience and naturally impeccable
  systems and methods
• Solution In addition to working with all
  regions, many of the country markets and brands
  including all the Chivas Brothers whiskies,
  Malibu, Wyborowa, Jameson, Havana Club, and
  Martell, AAI has been involved in the development
  and delivery of management development programmes
  at Pernod Ricard University near Rambouillet,
  where David Wethey has lectured on 11 occasions.
  AAI also work on optimisation programmes in
  evaluation, remuneration and cost control
• Outcome Pernod Ricard has now been able to
  rationalise global agencies, hot shops and
  specialist agencies. The company is also set to
  become a leader in agency management practice

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Contacts

• Chairman
• David Wethey
• Address 19 Buckingham StreetLondon, WC2N
  6EFTelephone 44 (0) 20 7976 1300Fax 44 (0)
  20 7976 1818E davidw_at_agencyassessments.com
• web www.agencyassessments.com
• General Manager in Russia
• Vasily Ananin
• Address 14 Bolshaya Novodmitrovskaya Str.
• Moscow 127015, Russia
• Telephone [phone]Fax 7
  [phone]Mobile 7 (926)
  537-33-33E-mail vasily_at_aai.ru web www.aai.ru