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<tedp> Hello, everyone! I wanted to know
what Denis is working on currently?
<dbudniewski> I currently run Saatchi & Saatchi's
haircare businesses from our NY office.
<dbudniewski> This includes global responsibilities
for Physique and North American responsibilities for Head
& Shoulders.
<tedp> I attended your presentation at Thunderbird.
Is advertising for haircare products becoming more complicated
taking into account the increasing number of products on the
market, are these products differentiating themselves purely
on image?
<dbudniewski> Yes, the haircare market is becoming increasingly
more competitive.
<dbudniewski> If you look at the activity in the US
over the past 6 months, we've probably seen more launches
and relaunches than ever.
<dbudniewski> Major brands such as Pantene, Vidal Sassoon,
and Salon Selectives have relaunched.
<dbudniewski> Other new brands such as Physique and
John Frieda have made the competitive landscape even more
cluttered.
<dbudniewski> In terms of how we differentiate, yes...
image is a key component, but my experience says that image
alone isn't enough.
<dbudniewski> To sustain a difference, you need to give
consumers a compelling reason to stay with you... more than
"I can relate to your image".
<tedp> I am currently working on a marketing communications
campaign for a wine importer, there the big differentiator
is taste, and also price. However, with haircare depending
on the category, price I mean, it seems like most products
accentuate the same qualities or attributes, how do you deal
with this?
<dbudniewski> While the attributes may be the same...
you can always find a new twist or spin to put on them.
<dbudniewski> For example, on Physique we have tried
to own the territory of 'science.'
<tedp> Is the focus again on having strong brand equity
through a consistent campaign and a focus on brand awareness
and recall? Make the consumer believe in an "added value"
proposition?
<dbudniewski> As the Brits would say, "Spot On".
Yes, the focus should be on driving a strong brand equity
through consistency in not just the campaign, but the communications
program.
<dbudniewski> If you can get consumers to believe in
your 'added value' proposition and be more willing to pay
a premium price, then you're on to something.
<tedp> It seems like the category of products that you
are working on can be comprised both of a lot of brand loyals,
as well as brand switchers. Do you have a specific focus with
Physique, are you trying to attract these favorable brand
switchers or to maintain the loyals?
<dbudniewski> Haircare is a category that has very very
few loyal users. Other than Head & Shoulders users (which
are very loyal), most haircare consumers have the belief that
their products 'wear out' over time.
<dbudniewski> Our initial focus on Physique (as with
any new product launch) is to generate as much trial as possible.
<tedp> And then hope that the product lives up to its
promise and delivers?:-)
<dbudniewski> Yes... if the product doesn't meet the
expectations or promises you give consumers, then you're in
big trouble.
<dbudniewski> To avoid this problem, we really did our
homework on product performance before we launched.
<tedp> I agree, this is really a tough category to advertise
but the challenge can turn into a very rewarding experience?
What are you monitoring, or I guess are the brand managers
monitoring sales to evaluate the effectiveness of the campaign?
<dbudniewski> We actually have several different measures
in place to gauge our performance.
<dbudniewski> The first is sales, then we use Neilsen
share (both dollar and volume), awareness tracking studies,
internet usage, club membership, Neilsen household panel data,
etc.
<dbudniewski> Does this answer your question or were
you more specifically referring to advertising testing?
<tedp> How useful are the Nielsen household panels?
The answer is great, it's exactly what I was asking for.
<dbudniewski> Nielsen HHP's are very useful to determine
who's actually buying your product (who are they). It's also
useful to really dig into behavior - how much are consumers
buying, are they loyal, are they switching, who are they switching
to, etc.
<tedp> I am still very interested in pursuing a career
in advertising but it seems that even with my 3 year experience
it is hard to get a position that is not entry level?
<dbudniewski> It depends on the relevance of your past
experience.
<tedp> How do you reward the panelists for their input?
<dbudniewski> I'm not sure how Nielsen rewards their
panelists. Sorry.
<tedp> It's OK, Ithe reason I asked this question was
because I was curious to find out if their input and feedback
can be trusted 100%, and usually a good reward system helps
in this respect.
<janelle> How many languages do you feel is necessary
for Global Advertising?
<dbudniewski> As someone who runs a global business
and has worked in a foreign office, I speak only English.
However, it would be infinitely helpful if you knew more than
one.
<dbudniewski> For most major corporations, business
is usually conducted in that company's headquartered country.
Since I've worked with Procter & Gamble, the written and
spoken langauge is always English.
<janelle> What is your day like?
<dbudniewski>
A former CEO of Saatchi & Saatchi, Joe Mack, summed it
up nicely. You start your day with a to-do list and you'll
be lucky if you get to a third of the items that day.
<dbudniewski> What I love about advertising is that
your days will be completely different.
<janelle> Good answer!
<janelle> It is difficult to break into advertising.
How difficult is it to get an entry level account executive
position working with global clients?
<dbudniewski> While difficult, it's not impossible.
I suggest using resources such as AEF or your campus recruiting
office. The entry level market is very competitive, but Agency's
are always looking for great people.
<tedp> Denis, I have one last question. Who is your
advertising role model or guru, and why?
<dbudniewski> Not to sound like a corporate recording....
but, I would say my advertising guru is Saatchi & Saatchi's
current CEO, Kevin Roberts.
<dbudniewski> While his background comes from the client
side, he's probably done more to shake up the advertising
world in recent times than anyone else I know.
<dbudniewski> I would suggest you log on to his website
if you get a chance.
<tedp> I really admire David Ogilvy and his style and
what he did for advertising as a whole. Thank you for your
great answers.
<tedp> Does Kevin Roberts have any books out?
<dbudniewski> Yes, in fact he just launched a book titled
"Peak Perfomance" yesterday.
<dbudniewski> He teamed up with several other marketing
'experts' and analysed the factors that led to 'peak performance'
amongst great sports teams such as the Williams Formula racing
team to the Atlanta Braves.
<tedp> I'll be sure to buy it and find out more about
him. Thank you for your time, I am going back to class. I
met Peter Moore recently who has worked with Michael Jordan
and is currently working with Kobe Bryant for Adidas, It is
a fascinating advertising field!
<janelle> This is better than class! There are alot
of cultural differences to be aware of in advertising. How
do you deal with them?
<dbudniewski> Fundamentally, you need to constantly
check with consumers. Everything from strategy to copy language
are potential mine fields. Electrolux is a perfect example...
they took a great European brand and literally translated
their selling line when they launched in the US.
<dbudniewski> The selling line translated to "Electrolux
sucks." Obviously, not a wise move.
<janelle> Thanks for sharing that! I heard that job
security is a problem for entry level people in advertising?
Is high-turnover rate a rumor?
<dbudniewski> High turnover isn't a problem of people
leaving because they're asked to leave. But, rather the job
market is so good, entry level folks have a ton of opportunities
to choose from.
<janelle> Good news!
<janelle> How much traveling do you do?
<dbudniewski> I'm usually out of the country once a
month. Then, once a week a travel to see my local clients
in Cincinnati.
<janelle> How does Saatchi and Saatchi do global research?
In-house?
<dbudniewski> We use a combination of outside suppliers,
client tools and in-house programs. Anything specific you're
looking for?
<janelle> No, just curious. I am taking a global research
methods class. We discuss the importance and potential problems
of obtaining research in other countries. Have you ran into
any obstacles?
<dbudniewski> Of course... cost is a big obstacle. If
you're running a global business efficiently, you can't test
everything everywhere. You need to be choiceful and representative.
For example, you may decide to only test in two European countries
versus all fifteen.
<janelle> Thank you for taking the time to talk to students!
Thanks!
<dbudniewski> Thanks everyone... I really enjoyed the
questions and discussion.
Content Master, aef.com
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