Leo Burnett Case Study

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Leo Burnett Company Ltd.:
Marketing Strategy for “Forever Young”

Presented to: Leo Burnett Toronto, Canada
Presented by: Janet Carmichael
July 2001

Table of Contents

Executive Summary2

Problem Statement4

Internal Analysis4
External Analysis52


Alternative Selection and Evaluation6

Recommendation and Implementation9
Short Term Implementation9
Long Term Implementation10
Risk Mitigation10

Exhibit 1: SWOT Matrix11
Exhibit 2: Evaluation of Alternatives12

Executive Summary
Leo Burnett Company Ltd. (LB), founded in 1935, has become one of North America’s top advertising agencies with an outstanding reputation. Leo Burnett is highly focused on client relationships and customer satisfaction. However, LB’s current client relationship with Ontann Beauty Care (OBC) is presently at risk. OBC, a major client, has hired LB to launch its new “Forever Young” product line. Two test markets were established and while the Asian market was successful, the North American market, stationed in Toronto, is performing below standards.

I have determined that the poor performance of the Canadian team is largely due to ineffective communication between the global LB office in London and the local satellite in Toronto. Communication setbacks have lead to tension and inconsistencies between the teams and in the materials produced. It has become necessary to restructure the global advertising team.

I have detailed four possible alternatives for the restructuring of the team: maintaining centralized control, decentralizing the Toronto office, establishing a headquarters in the United States, or relocating the global team to Taiwan. It is my recommendation that the LB team adopt a decentralized global advertising structure while working on the OBC product line. This will eliminate the extensive international communication, the tensions and the product inconsistencies between the two teams. The Toronto team has a thorough understanding of the target market, which will assure a successful product launch and a positive client relationship with OBC.

I, Janet Carmichael, as global account director of Leo Burnett Company Ltd. London, and brand team leader for the new line of “Forever Young” Ontann Beauty Care products, am making a recommendation on how to proceed with the OBC brand to the Leo Burnett Toronto, Canada team. OBC has selected Leo Burnett to market its new, high-potential product line, “Forever Young.” However, the Toronto marketing team, responsible for bringing the product to the Canadian market, has experienced setbacks and an overall poor performance level thus far. I will indicate how to restructure “Forever Young” brand’s global advertising team, salvage their Canadian ad campaign, and successfully launch the product in the North American market. I have carefully considered the issues which have lead to the given setbacks: both external and internal factors which impact the Leo Burnett Company Ltd. Having developed a set of crucial criteria, I was able to evaluate several promising alternatives which would allow LB to successfully execute the “Forever Young” project while maintaining a favorable client relationship with Ontann Beauty Care. Finally, I have addressed the issues of implementing the recommended alternative in both short and long term periods and recognizing as well as mitigating potential risks. Background

Leo Burnett Company Ltd. is one of the premier advertising firms in North America, having successfully introduced numerous widely recognized brands. LB has been hired by OBC, one of Leo Burnett’s original clients, to successfully launch the “Forever Young” product line into the market. While the launch was effective in the Asian market, the North American team is still experiencing significant difficulties. The global LB team in London and...
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