Leo Burnett Case Study
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 Summary 2
Introduction 3 Background 3 Problem Statement 4
Analysis 4 Internal Analysis 4 External Analysis 5 2
Criteria 5
Alternative Selection and Evaluation 6
Recommendation and Implementation 9 Short Term Implementation 9 Long Term Implementation 10 Risk Mitigation 10
Exhibits 11 Exhibit 1: SWOT Matrix 11 Exhibit 2: Evaluation of Alternatives 12
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
Marketing Strategy for “Forever Young”
Presented to: Leo Burnett Toronto, Canada
Presented by: Janet Carmichael
July 2001
Table of Contents
Executive Summary 2
Introduction 3 Background 3 Problem Statement 4
Analysis 4 Internal Analysis 4 External Analysis 5 2
Criteria 5
Alternative Selection and Evaluation 6
Recommendation and Implementation 9 Short Term Implementation 9 Long Term Implementation 10 Risk Mitigation 10
Exhibits 11 Exhibit 1: SWOT Matrix 11 Exhibit 2: Evaluation of Alternatives 12
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