Looking Forward to the Next Fifty Years of PR
By Fred Cook, President and CEO, GolinHarris


Fred Cook
This Industry Insight was featured in PRWEEK (US) on 22 August, 2006

In preparation for our 50th anniversary, GolinHarris has spent much of the last year exploring the future of communications to determine where the public relations industry is headed.  We have identified three emerging trends that directly impact public relations agencies -- consolidation, specialization and integration.

In the coming decades, because of continued consolidation, consumers may all shop at one discount store; fly on two airlines and deposit pay checks at one of three banks.  While that may seem like a bit of an exaggeration, there will simply be fewer companies, which means fewer clients for agencies to represent, and fewer agencies for clients to hire.  This contraction and the resulting competition will place a lot of pressure on client/agency relationships.    As ownership and loyalties shift, both clients and agencies will have to work harder and invest more to build the long-term relationships that have been the hallmark of the industry.

So what will those clients demand? 

For certain, specialization.  Not just general knowledge of how the media works or how brands work, but specifically, how their business works.  To survive, PR agencies will become more specialized in the services they provide.  Even today, it’s not enough to have healthcare expertise.  Agencies must have proprietary knowledge of specific disease states.  The extent of this specialization will only increase.  As drugs become more targeted, agencies will be required to have intimate knowledge of the patients they impact and the physicians who treat them.  The same applies to the consumer market.  It will simply not be enough to have a practice focused on marketing to women.  That broad demographic must be broken down into smaller “tribes” that share specific enthnographic and psychographic traits, which will be receptive to personalized messages.

Someday, the idea of an “agency of record” may be replaced by a select group of advisors – each designated by key executives as their primary outside eyes and ears on a single issue.  Their counsel could permeate all decisions.  Instead of trying to be all things to all people, smart firms will invest heavily in specific areas of expertise that are critical to their clients’ future.

In the past, key counselor roles often were filled by ad executives, who were once perceived as the possessors of all brand knowledge and therefore all marketing budgets.  In today’s changing marketplace, traditional advertising by itself is increasingly irrelevant.  Integration is king.  The distinctions between agency disciplines have blurred and clients no longer care where big ideas come from.  They just know they want them. 

The road is wide open for PR to play a much broader role in the marketing mix.  But PR people must think and act more boldly if they want to command the driver’s seat.  And they must learn to collaborate seamlessly with the other passengers in the car like advertising, promotions, direct response and interactive if they want to lead the way.

If you want to learn more about GolinHarris’ take on the future, log onto www.NextFiftyYears.com


GolinHarris Demonstrates the Power of PR in Creative Marketing Campaigns
By Wade Lundin, Associate Director, GolinHarris in Hong Kong.
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Wade Lundin
The Hong Kong office’s marketing & brand strategy practice, led by practice head Ida Young, recently worked with client Bayer HealthCare to launch a brand-building campaign for Levitra, Bayer’s erectile dysfunction (ED) treatment. The initial stage seemed unlikely coming from a PR firm: an advertising campaign that GH has coined “Dramics.” Dramics are intended to convey messages about ED in an entertaining way, boost the stopping power of the ads, and move ED sufferers to take positive action and seek help.

Dramics were conceived and created entirely by GH, who oversaw the development of approximately a dozen “episodes” as well as the media buying and placement. The idea stemmed from an extensive brand-building workshop we conducted for Bayer, where it was determined that Levitra needed to create its own space in order to gain market share from its competitors rather than challenging them on their own turf. Typically, pharmaceutical companies have marketed ED drugs with focus on the satisfaction of male sexual needs. Levitra instead needed to be seen as a “rejuvenator” of spontaneity between couples, which would result in stronger, more fulfilling relationships.

The Dramics, which are now running in major Hong Kong magazines and dailies, address many of the key messages, facts and fictions about ED in a way that has never been done before. However, this is not the first time GH has taken the lead in a creative campaign to drive business results for clients.

Levitra’s Dramics, which are now running in major Hong Kong magazines and dailies, address many of the key messages, facts and fictions about erectile dysfunction in a way that has never been done before.

In April, the marketing & brand strategy team also unveiled the now-famous “cotton in vogue” campaign for longtime client Cotton Council International, who licenses use of the COTTON USA Mark on clothing containing US cotton. To help elevate US cotton in Hong Kong’s fashion consciousness, GH created a campaign that would communicate the artistic side of cotton. It centered on a large-scale art piece, rendered entirely in cotton and designed by award-winning art director Man Lim Chung, which would convey the value of cotton as a medium of expression for the world’s finest fashion and interior designers.

Starring actress Isabella Leong, who was fresh off her star turn at the Berlin Film Festival for the movie “Isabella,” and featuring top international labels Marc Jacobs, Calvin Klein, DKNY and Giorgio Armani Cosmetics, “cotton in vogue” was the first event of its kind in Hong Kong. It drew huge crowds to one of the city’s swankest shopping centers, driving foot traffic up an astounding 15% during the exhibition period and attracting dozens of fashion media and VIP representatives from prospective licensees.

For both “Dramics” and “cotton in vogue,” GH masterminded all aspects of the campaigns for its clients. The immediate advantage is obvious: The client is guaranteed consistent messaging across all aspects of marketing, including PR and advertising. In addition, the client avoids the inefficiencies and mistakes that can happen when a client/ ad agency/ PR agency approach is used, which can turn into a Bermuda’s triangle for communications.

Based on the work GH has been doing leading successful creative campaigns in Hong Kong, it is becoming increasingly clear that PR is just as equipped to lead such a campaign as advertising, especially when some of the agency’s best creative minds are at the client’s disposal. In Hong Kong, GH is gearing up for more attention-grabbing campaigns for a number of clients operating in a variety of industries... so watch this space!



Budweiser’s World Cup Tactic Scores a Hit in China
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Nicolaus Wilk

An excerpt from the following was featured in Media magazine, Letters to the Editor, 28 July 2006

The recently concluded 2006 World Cup was remarkable for many things: a record number of red cards, Zidane's headbutt, and China's first big score on arguably the world's biggest stage.
 
While the Chinese national team did not net the ball, nor even take part in the World Cup, Chinese fans had plenty to cheer about with the colors appearing on the pitch—and represented by the US at that.
 
The fans, of course, were cheering for "Bud."
 
St. Louis-based Anheuser-Busch, maker of Budweiser beer, bought two very prominent and visible sideboards on the pitch, placing the company's traditional English name, "Bud," right next to the Chinese equivalent, "Bai Wei," on both sideboards. The only company to place bi-lingual ads at the ground (we believe).

And in doing so, Budweiser may have won itself a billion new fans.
 
Since the mid-90s, marketers have been preaching brand consolidation to marketers to corporates in an effort to create a consistent brand message and position.
 
Yet, with one very simple bi-lingual advertisement, Budweiser may have turned the industry on its head.
 
Chinese laws dictate that any company operating a business unit within China must be registered in a Chinese name. As a result, all foreign brands in China effectively have two brand names—yet most still rely on their established brand identity.
 
Budweiser, it seems, has chosen to buck both the practice of brand consolidation and relying on its English name across China, and has, in the mind of its Chinese consumers, positioned its Chinese brand name as equally important to its English name. Doing so in a country outside of China only further raises the stakes of this new strategy.
 
By playing to the strong nationalistic pride of the Chinese, Bud may have grabbed itself a larger market share of the CCTV-estimated ten billion cumulative viewers from the Chinese market. That represents nearly one third of the total cumulative viewers worldwide.
 
But the story doesn't stop there. According to a CLSA report on Chinese tourism, roughly 40 million overseas trips will be made by Chinese passport holders in 2006, with the number rising to 115 million trips per year by 2020.
 
And when they can't find their local Chinese favorite, Tsingtao, guess which brand they'll most likely reach for first? Thus, this increasingly remarkable ad could potentially help Bud drive up sales not only in China, but abroad as well.
 
It is yet to be seen whether other companies will follow suit and divide their brands so soon after recent consolidation, or whether Bud will take an even bigger leap and repackage its bottles with both brands to target Chinese tourists in strategic locations. But with its initial move, Bud has definitely scored, and has potentially opened the floodgates of industry change.

Nicolaus Wilk
Account Supervisor
GolinHarris in Taipei