ogilvy & Mather

Promotion Management

a

Report

On

Ogilvy & Mather

(AD Agency)

Submitted To: Prof. Soumya. Naik

Submitted By: Ankita. M (04)

Divya.Prabhu (10)

Meenaxi. C (18)

Shagufta. J (34)

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AD Agency: Ogilvy & Mather

Type: Subsidiary of WPP Group

Industry: Advertising, marketing, public relations

Founded: Manhattan (1948)

Headquarters: Manhattan, USA

Subsidiaries:

Ogilvy One Worldwide

Ogilvy Interactive

Ogilvy PR Worldwide

Ogilvy Health world

Ogilvy Action

Neo@Ogilvy

Website: www.ogilvy.com

Ogilvy & Mather is an international advertising, marketing and public relations

agency based in Manhattan and owned by the WPP Group. The company operates

497 offices in 125 countries with approximately 16,000 employees.

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Overview

Building brands is at the core of Ogilvy & Mather Worldwide activities. The company

emphasizes it uses a holistic approach to brand building, touching every contact point a

consumer might have with the brand. It could be the packaging, merchandising, and

advertisements on billboards, television, radio or the Web. The company even uses public

relations to create a more conductive environment for the brand.

Ogilvy & Mather Worldwide divisions include OgilvyOne (direct marketing to

individuals), Ogilvy Interactive (marketing through Web sites and wireless devices), and

Ogilvy Public Relations Worldwide. Ogilvy Public Relations Worldwide offers services,

including consumer marketing, corporate branding, public affairs lobbying, and creative

media. Ogilvy PR operates two specialist units: B/W/R, a corporate entertainment firm,

and Feinstein Kean Healthcare (FKH), a service firm specializing in biotechnology and

the pharmaceutical industry.

The company was acquired by number 2 advertising conglomerate WPP Group in 1989.

WPP also owns PR giants Hill and Knowlton and Burson-Marsteller. Clients of the WPP

Group include the majority of companies in the Fortune Global 500 and the NASDAQ

100, including Ford, IBM, Kellogg, Eastman Kodak, Novartis, Pfizer and American

Express.

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History

Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt, Ogilvy, Benson, &

Mather" in Manhattan. The company became a leading worldwide agency by the 1960s.

[citation needed] Central to its growth was its strategy of building brands such as

American Express, BP, Ford, Barbie, Maxwell House, IBM, Kodak, Nestlé, and Unilever

brands Pond's and Dove.

Ogilvy & Mather was built on Ogilvy's principles, in particular, that the function of

advertising is to sell and that successful advertising for any product is based on

information about its consumer.

His entry into the company of giants started with several iconic campaigns:

"The man in the Hathaway shirt" with his aristocratic eye patch; "The man from

Schweppes is here" introduced Commander Whitehead, the elegant, bearded Brit,

bringing Schweppes (and "Schweppervesence") to the U.S.; "At 60 miles an hour the

loudest noise in this new Rolls-Royce comes from the electric clock"; and "Pablo Casals

is coming home – to Puerto Rico", a campaign that Ogilvy said helped change the image

of a country and was his proudest achievement.

One of his greatest successes was "Only Dove is one-quarter moisturizing cream". This

campaign helped Dove become the top selling soap in the U.S.

In 1989 The Ogilvy Group was purchased by WPP Group.

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Management

The chair is Shelly (Rochelle) Lazarus, who has held the position since 1996. She also

was CEO until the end of 2008, when she was succeeded by Miles Young.

o Wayne L. Berman, Chairman

o Moses Mercado, Chairman

o Drew Maloney, CEO

o Gordon Taylor, President

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Clients

Ogilvy & Mather board has produced work for a wide range of leading brands, including:

• Adidas (since 2007)

• American Express (since 1962)

• Amway (since 2009)

• British Gas (since 2008)

• BP (since 1999)

• Cisco (since 2002)

• Coca-Cola Company (since 2001)

• DHL (since 2002)

• DuPont (since 2003)

• Ford (since 1975)

• Gillette (since 1962)

• GlaxoSmithKline (since 1983)

• IBM (since 1994)

• Kodak (since 1995)

• Kraft (since 1958)

• Lenovo (since 2005)

• Mattel (since 1959)

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• Motorola (since 2000)

• Nestle (since 1956)

• NexCen Brands (since 2007)

• SAP (since 1999)

• Siemens (since 2008)

• Tobacco Institute (ended 1998)

• Unilever (Parent Company) (since 1954)

• Vodafone (2009)

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Notable campaigns

In 1972 Ogilvy & Mather, Sydney first developed the line "Don't Leave Home Without

It" as a means of educating Australians how to use the country's first credit card. Created

by Ian Latham and David Prentice. Three years later in 1975, the line was adapted by

Ogilvy & Mather New York to "Don't Leave Home Without Them' ad campaign for

American Express Traveler's Cheques, featuring Oscar Award-winning actor Karl

Malden. The "Don't Leave Home Without It" slogan was revived in 2005 for the prepaid

American Express Travelers Cheque Card. After Malden's departure, American Express

continued to feature celebrities, including Jerry Seinfeld, Martin Scorsese, Robert

DeNiro, Wes Anderson, and Ken Watanabe.

In 2007, Ogilvy Stockholm developed the "Animals in the Womb" campaign for Ford

Flexi fuel, which was nominated for the Cannes Lion Award and for the Gadget Award in

2008.

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Public relations

Subsidiary, Ogilvy Public Relations Worldwide operates 69 offices in locations

throughout the world. Head-quartered in New York, it has a total of nine offices in North

America, along with 22 offices in Europe, five in South Asia, ten in East Asia, five in the

Middle East and Africa, two in Central Asia, three in Latin America, six in Southeast

Asia, and seven in Australia.

Ogilvy Public Relations has its own wholly owned subsidiaries:

• BWR Public Relations: Acquired in 1999, BWR is head-quartered in Beverly Hills,

California and also operates an office in New York. It describes itself as "a corporate,

lifestyle and entertainment-based public relations firm."

• Feinstein Kean Healthcare: Also acquired in 1999, FK Healthcare is based in

Cambridge, Massachusetts and provides "an array of communications and consulting

services to biotechnology, pharmaceutical and other healthcare companies." It is also

parent company of Kendall Strategies.

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Government Relations

In 2005, Ogilvy PR acquired all-Republican lobbying firm The Federalist Group LLC.

The company subsequently became bipartisan, and its name was changed to Ogilvy

Government Relations. Operating from the same building as the office of its parent

company in Washington, DC, In 2010 Ogilvy Government Relations became a wholly-

owned subsidiary of Ogilvy & Mather. OGR had a total lobbying income of over $21

million in 2009. This makes OGR the 7th largest lobbying firm in the United States.

OGR was named a Top 10 financial services lobbying firm in the 2010 regulatory reform

debate. Its top clients included the Blackstone Group, Highstar Capital, the Poker Players

Alliance, Chevron Corporation, and Verizon Communications. OGR employees and

lobbyists donated over $230,000 to Republican and Democratic Party primary candidates,

politicians and PACs during the 2008 election cycle. OGR Chairman, Wayne Berman,

was featured on Washingtonian magazine's 2007 list of the top 50 lobbyists in

Washington, DC.

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Market Share / Importance

Ogilvy & Mather Worldwide has 35 US offices and a further 359 worldwide in over 90

countries. Excluding specialized marketing subsidiaries, Advertising Age rank O&M as

the number 8 agency network worldwide in 2001 with gross income of $1.1m and

billings of $10.7bn.Another source recently labeled O&M Worldwide as the world's ninth

largest agency network, with billings totaling almost $13bn.

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Company History

David Ogilvy: founder and patriarch of the expansive Ogilvy Group

Ogilvy was founded in 1948 by British ad pioneer David Ogilvy who now stands as a

legend within the advertising world. David Ogilvy "believed it to be the right and duty of

a wise and benevolent elite to civilize the world."

In 1936, David got an internship at the London ad agency Mather & Crowley, which sent

David abroad to study American advertising techniques for one year. He returned from

his year abroad with extensive knowledge about American advertising techniques. In

1948, after being out of advertising for ten years, Ogilvy started his own agency. His

brother Francis financially assisted him. S. H. Benson Ltd., another London shop, also

invested $45,000, but insisted that Ogilvy hire someone who knew how to run an agency.

Ogilvy hired Anderson Hewitt away from J. Walter Thompson to be president, and

appointed himself vice president in charge of research. The business opened as Hewitt,

Ogilvy, Benson & Mather (HOB&M).

The beginnings of Ogilvy & Mather

Opening a new advertising agency in 1948 seemed good timing. The Depression and

World War II had driven all but the largest, well-established, advertising firms out of

business and had discouraged attempts by newcomers to break into the market. However,

with the war over and the American economy expanding with unprecedented vigor, and a

greater public awareness of the media and its influence, advertising became a necessary

element in any business practice. The potential for growth was almost limitless. Still, the

agency of HOB&M did not become successful overnight. Competing with such long-

standing industry leaders as J. Walter Thompson, Young & Rubicam, Leo Burnett, and

BBDO was difficult.

HOB&M moved forward steadily. In 1951, a small shirt maker, C. F. Hathaway, came

asking for help. This led to the "man with the black eye patch" campaign, arguably one of

Ogilvy's most famous that ran for 25 years. Quickly after came the Schweppes Co., a

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British maker of soda water and other mixer beverages. By 1952, David Ogilvy was

becoming incredibly well known. However, trouble was brewing at the agency. Despite

his role as Mr. Ogilvy's boss, Anderson Hewitt was not getting noticed at all. By 1953,

Anderson was gone, and HOB&M had become Ogilvy, Benson & Mather.

Soon after, the third of Mr. Ogilvy's defining advertising moments came along. With a

meagre budget of $50,000, Rolls-Royce appealed to Ogilvy in the same low-profit, high-

prestige way that Schweppes and Hathaway had. The Rolls-Royce ad ("At 60 miles an

hour, the loudest noise in the new Rolls-Royce comes from the electric clock.") became

the paradigm for all subsequent automobile advertisements. In the short run, these three

ads barely paid for themselves; the accounts were small. However, over the long term,

the Hathaway, Schweppes, and Rolls-Royce ads demonstrated the 'Ogilvy Style' and

attracted a number of new clients.

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Expansion, Innovation and Diversification

In 1955 O&M helped launching Unilever's Dove as '1/4 moisturizing cream'. In 1960,

Shell Oil started an account, increasing O&M's revenues by almost 50%. Later, accounts

were also secured from General foods, Bristol-Myers, and Lever Brothers, to name just a

few. By 1962 the agency's billings had increased dramatically, and Ogilvy had

established himself as an innovator in the business. Indeed, the 1960's and early 1970's

marked a period of expansion and innovation. In 1964 Ogilvy, Benson & Mather Inc. of

New York merged with Mather & Crowther Ltd. of London to become Ogilvy & Mather

International. In 1966 O&M became the first ad agency to go public on both the London

and New York stock exchanges.

During the same period O&M also became more diverse in its range of advertising. It

developed campaigns for large corporations, non-profit organizations (e.g., the World

Wildlife Fund), whole nations (Puerto Rico, Singapore, France), and international clients

whose markets were primarily outside the US. By 1975 O&M had grown extensively. In

addition to General Foods and its other base accounts the agency had established

accounts with American Express, IBM, Merrill Lynch, Campbell's Soup, and Mercedes

Benz. Branch offices were set up around the world to handle the large amount of

international business the firm had developed and subsidiaries were consolidated under

the umbrella of the parent company.

Growth on the scale experienced by O&M also resulted in adverse effects. O&M's

creativity became stifled as the immensity of the operation created bureaucratic

impediments. The agency became conservative, feeling an obligation to its shareholders

to secure consistent dividends and minimize risks. The agency successfully produced

conservative campaigns for large companies, but creatively speaking, had stagnated.

David Ogilvy was aware of what was happening and, on the eve of his retirement, made

some dramatic changes, taking new, creative people on board. To avoid creativity

problems in the future, O&M created a network of semi-autonomous subsidiaries that,

while having access to the resources only a large company can provide, still work in a

"small shop" environment.

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Ogilvy Becomes Part of the WPP Empire

In May of 1985 Ogilvy & Mather International Inc. became the Ogilvy Group.

In 1989, O&M was acquired by number 2 advertising conglomerate WPP Group. David

Ogilvy wasn't at all pleased with the hostile takeover and called WPP CEO Sorrell "an

odious little shit".

Conflicts of Interests among Clients

From the eighties onward, companies in all industries have increasingly been focusing on

building brands. Factors ranging from the rise of the global economy to the rise of the

Internet have helped make brands more powerful than at any time in history. On the 5th

of May 1994 IBM made marketing history by consolidating its entire $400 million global

advertising account at one agency, Ogilvy & Mather.

However, from the 1980's onwards O&M began to experience conflict of interest

problems among clients and prospective clients, making it hard for the firm to expand. In

other words, it became difficult for the firm to pursue additional clients in a particular

industry when it was already doing the advertising for another company manufacturing

the same type of product.

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Diversification in the Digital Age

O&M keeps diversifying, although selectively. The agency is currently exploring new

possibilities opened up by the Internet and digital TV. Both venues allow for more

focused advertising, targeting specific audiences. Aim is to stimulate the shifting

consumption habits, and to get consumers -not confined to conventional shopping hours-

to buy more online. However, as Ogilvy PR CEO Mike Walsh explains, Ogilvy's priority

is still old-economy brands [as opposed to the new economy brands] because "these are

still the guys with the money, with the investments, the experience and the long-term

vision."

Counter Threat

Six months after the September 11 terrorist attacks Ogilvy PR has become the first major

public relations agency to launch a unit dedicated to helping clients respond to terrorism.

September 11 had brought about a "sea change" in the way companies handled crises,

said Bob Seltzer, the chairman and chief executive of the company.

The new division, called Counter Threat, is designed to help companies prepare for and

cope with crisis scenarios, including the disruption caused by terrorist attack.

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Controversies

Ogilvy caused some controversy in 2004 when a (reportedly) discarded video

advertisement for the Ford SportKa hatchback began spreading virally via email. The 40-

second video, which shows a lifelike computer-generated cat being decapitated by the

car's sunroof (apparently) was rejected by Ford, but still 'managed' to make its way onto

the internet, sparking outrage among bloggers and animal rights groups.

Ogilvy also has been involved with the notorious Asia Pulp & Paper, a large logging

company that has been convicted of illegal logging in three countries, and recently has

built roads illegally into the last remaining habitats of the critically endangered Sumatran

Tiger, but spent large sums on global advertising campaigns claiming 'sustainability

beyond compliance'.

In 2005, Shona Seifert and Thomas Early, two former directors of Ogilvy & Mather,

were convicted of one count of conspiring to defraud the government and nine counts of

filing false claims for Ogilvy over-billing advertising work done for the U.S. Office of

National Drug Control Policy account. In an e-mail, Seifert stated "I'll wring the money

out of (the ONDCP), I promise". Seifert and Early were sentenced to 18 and 14 months in

prison, respectively. Seifert also was ordered to pay a $125,000 fine, in addition to

writing a "code of ethics" for the ad industry as part of 400 hours of community service.

Ogilvy & Mather repaid $1.8 million to the government to settle a civil suit based on the

same billing issues and continues to produce anti-drug spots for the government.

Ogilvy Government Relations, a wholly owned subsidiary of Ogilvy Public Relations

Worldwide, is credited with playing an instrumental role in killing the controversial 2005

bid by Chinese oil company CNOOC to buy Unocal Corporation, which would then go

on to merge with Chevron Corporation, an OGR client.

The company was involved with a controversy in May 2009 when a Clio Award was

given to a campaign for the A & E History Channel. One of the associated images

compared the American deaths at Pearl Harbor with the Japanese deaths after the

bombing of Hiroshima.

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ogilvy & Mather

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