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<dcporter> Hi - this is Doug Porter in
Chicago - we might be a few minutes before our official start
time - but there has to be some benefit to being early - so
ask away! And thanks for joining us today!
<dcporter> As a little background, I lead our efforts
on McDonald's here at Leo Burnett - which involves all the
Youth business in the United States as well as about 25 countries
around the world. In addition to McD's I work on Hallmark,
Toys R Us and Crayola - been here about 16 years - but those
are my responsibilities today.
<dcporter> Can anybody let me know where they are from
and what their interests are?
<amy> hi Mr. Porter! In global advertising which country
has the toughest rules/regulations to adhere to and why?
<dcporter> Amy - (and please call me Doug!) good question
- don't know that there are any simple answers because each
country at times feels like they have the toughest ones. But
I believe the hardest is around rules regarding advertising
to children. Basically, all the rules say "you can't
be deceptive or misleading to kids" and have to be sensitive
to their cognitive abilities - how that is interpreted is
the tricky part.
<Amy> Working on Crayola you must have some obstacles
regarding children's regs......What country is the easiest?
<dcporter> I hesitate to answer that because if they
ever know that we think they are easy some regulators will
move in. But in general, there are a lot of developing countries
that have very few rules or regulations about business in
general (the legal systems aren't developed in contrast to
ours here in the US) and they tend to be a bit more freewheeling
(re: competitive, substantiated claims, etc.).
<cotese> I will be graduating in May 2002 with a BS
in Management and a concentration in Marketing. What types
of career options are available for someone with this type
of experience?
<dcporter> Cotese - I really think they are quite numerous
- I assume that you also have a number of core courses that
give you some broad exposure to Liberal Arts thinking also.
Certainly the field of Marketing and Advertising is open (though
admittedly jobs are tougher to come by today). I think it
goes well beyond what you course work or major was - really
take an inventory of your skill set and interest. <tom_a>
What are the main differences you see between "Global"
and "International" advertising?
<dcporter> Tom - when we use global, we mean the entire
world - when we use international - we mean those countries
outside the US. I think the better word today is global -
it keeps us away from an "us" vs. "them"
mentality. Global is more inclusive with regards to country
of origin - the anti-American theme is pretty strong out there
today and we must be aware of it.
<kathyd> Do you feel that kids get advertising and are
able to understand more than we give them credit for?
<dcporter> Kathy - Most definitely agree with you -
kids get it today a lot quicker than we recognize. There is
a phenomenon going on that we call KGOY (kids getting older
younger). It means that today, kids at 5 really are experiencing
and understanding things that we might have when we were 7
or 8 (okay I'm 45!). That has to do with the pace of our lives,
technology and just "generational gains". We must
keep in touch with kids to ensure we see it from THEIR perspective.
<kathyd> Do you find it difficult dealing with the anti-American
sentiments working on a American icon such as McDonald's?
<Amy> Thanks Doug...:)...Now regarding Hallmark, we
in the US have sappy spots, they are really touching being
that we are an emotional society, perhaps dramatic, would
you use the same tactics/spots in other countries as you would
in the US for Hallmark?
<dcporter> Amy - I think the core positioning of Hallmark
will be the same (though we don't handle international work
for them) because at their very core they are about communicating
emotions. Now what those emotions are and how they come about
(what events trigger them, etc.) it might be very different.
For example, look at how different cultures treat marriages
- some are "arranged" and some are like this country.
<tom_a> Doug, I can understand how advertising works
on a global level, but how does someone in your position manage
across different countries with different languages, cultures,
etc.?
<dcporter> Tom - good one - the one way I can't tell
you is that you don't do it sitting in Chicago "thinking"
that you are a global expert - it just doesn't (and shouldn't)
work that way. You must have effective organizations in each
place that you do business that understand the organization's
objectives and are able to translate them into effective strategies
and tactics.
<dcporter> You have to give people the knowledge and
tools to translate those objectives into effective programs
. . for instance we (on McDonald's) certainly want to develop
our family & kids business - but we might go about that
differently in China than the US which is a very "mature
and developed " market.
<Amy> Thanks...what about Mickey D's, are the spots
the same in the US as they are in EURO or Japan?
<dcporter> Amy - No way! They get at the same core "business
drivers" (those things that compel people to go to McD's
(family& kid's experience, value, taste of the food, etc.)
but they are 95% locally concepted and executed. There may
be a few spots which go across a particular region - but really
none that travel globally.
<kathyd> Thanks Doug! If you had the choice of any account
to work on, what would it be?
<dcporter> Kathy D - what a set up - actually I love
McD's (and I mean it) - I love it because of the challenge
because it incorporates 3 key things 1) the opportunity to
build the brand through great image work that connects emotionally
. . .
<dcporter> 2) because it involves a retail component
that must compel the consumer to go today (price, product
promotion, Happy Meal toys, food specials, etc. and 3) the
chance to actually shape the restaurant design, menu, service
policies - because at the end of the day that is what gets
consumers to keep coming back. All 3 are tough to find in
a lot of "packaged goods" and other brands.
<Amy> What about in the US does NYC get the same as
CA?
<dcporter> Amy - About 50% of what California and NYC
see are about the same - (network advertisements, national
print books) - the other 50% is driven by the local co-ops
(that group of franchisees) that get together and decide on
a price message, a particular food offering (for example brats
are big here in Chicago while the Lobster sandwich gets a
lot of play in New England every summer).
<tom_a> Doug, since you've been in the role of globally
directing advertising, what trends have you seen and what
do you see on the horizon?
<dcporter> Tom - I think one of the things that is interesting
is to see the maturation of a particular brand in a given
culture. For example, again McDonald's is a very mature brand
in the US - but to go outside of the US there is still a lot
of development work to do. For instance, I was just in South
Africa where we are just opening the restaurant for breakfast.
. .
<dcporter> . . .now breakfast in that country is a bit
different and so our service offering and how we advertise
it is very different. We must fundamentally change some of
the culture there to get people to eat out of their homes
for breakfast, where in this country it is very much a market
share game because that "trend" is ingrained in
the culture. On the other hand, we have breakfast in China,
but it is the same menu (pretty much) as lunch.
<kathyd> What do you think is the best mindset to have
when approaching global advertising?
<dcporter> Kathy D - Don't have a lot of preconceived
notions - understand their culture and desires and make your
offering relevant - make the advertising compelling to them
from THEIR perspective - don't ASSUME anything!
<Amy> Thanks, good to know...Is the creative concept
the same for the advertisers/agency/creative for a brand?Or
does that change as well within countries ..furthermore if
the selling the same ideas are you are using the same tactics?
How do you know?
<dcporter> Amy - can you try again - don't quite get
your question
<dcporter> Ellenovar or mag4mag - are you out there
- any thoughts or issues
<ellennovar> Your experience is fascinating. I'm a marketing
professor in Ohio and just talked about your S. Africa experience
to a student sitting in my office. I'm just along as a voyeur!
Thanks.
<Amy> What I am trying to ask is if a brand has an idea-lets
use loyalty, for example-will it use the same idea/ 'selling
points' worldwide?
<dcporter> Amy - Not necessarily - a lot has to be considered
before using the same strategy or tactic to accomplish an
objective. Using loyalty as an example - the average child
in this country has a happy meal every other week or so -
we've built that kind of "loyalty" in many respects
using a collectibility strategy for the kids. If you look
at our Happy Meals (and Peter Pan is in the restaurants now)
there are often 5-8 different toys.
<dcporter> Now on the other hand, take a country that
has a much more difficult value situation - McDonald's is
really more expensive in their culture and therefore might
be more of a special treat. You might build loyalty there
through a purchase incentive (coupon) or an added value offering
(get such and such for free - like an ice cream cone for kids)
if you come back in the next 3 weeks. Do you see the difference
in strategy and tactics?
<Amy> Yes, thanks.
<tom_a> Doug, as traditional mass media is diluted and
the dot-com advertising popped, where is growth going to occur
in the ad industry now and in the years to come?
<dcporter> Tom - I certainly think it will be in the
nontraditional areas or what we might call below the line
items. For instance, the big three Communications holding
companies today (WPP, IPG & Omnicom) almost derive 50%
of their revenue from non- traditional sources (internet,
promotions, loyalty, events, etc.) and certainly their incremental
growth is mainly coming from that area.
<kathyd> What has been your most gratifying experience
in advertising?
<dcporter> Kathy - I would have to say the most gratifying
has to be when you see tangible results from your efforts
and that you know you really made a difference and contributed.
The biggest example for me is probably my experience on Luvs
diapers (a Procter & Gamble brand) in the late 80's .
. .
<dcporter> We got a chance to try a gender specific
idea on diapers (you know boys wet in one place, girls another
- I'm telling you this isn't rocket science!!) and we almost
tripled market share, quadrupled profits and actually changed
the whole category - as Pampers and Huggies followed. We innovated
and had the two leading brands turned on their heels for a
bit (then I moved on!!!!)
<Amy> Seems as if loyal was a good example, being that
all three advertisers you work with seem to practice loyalty.
Does Crayola have spots in the US?
<dcporter> Amy - Crayola has some fairly limited advertising
in the US right now - mainly very targeted stuff to educators,
etc. One of their challenges is how to take a category they
dominate (crayons) and leverage that trademark and dominance
into other similar areas where they have believability and
credibility with consumers - did you know they also make silly
putty??
<Amy> I own some of their silly putty....
<dcporter> Crayola has a presence in some other key
markets globally - but it is heavily concentrated in the US
right now. That is another challenge, and certainly an opportunity
for growth, but again how children play, what they play with
(cost of materials available!) can be very different - it
is one of the things that we are learning about now!
<dcporter> Amy - if you like their silly putty -you
ought to try their Model Magic!!
<Amy> Crayola has it all.. multi-cultural crayons for
kids of all skin tones, that's good stuff to me.
<dcporter> Not only is it good stuff - it is the right
thing to do - things like that make a product more meaningful
to specific target groups. As markets mature, a brand has
to better understand their segmentation (heavy users, vs.
light, geographic differences, etc.). Another example of this
might be the segmentation of Youth Meals at fast food restaurants
in the last few years - at McDonald's it all used to be Happy
Meals - now we have Happy Meals and Might Kids.
<kathyd> Doug- do you think that the world has become
too advertising "savvy" and has grown away from
icons?(such as the Keebler elves or Ronald McDonald)
<Amy> what about Tony the Tiger?
<dcporter> Kathy d - yes I think that people today are
more savvy - take a look at the advertising from the 50's
and 60's - you can get laughing pretty hard to see some of
that. My feeling is that today, it just isn't about advertising,
you really have to deliver the essence of the brand and make
sure that the product really delivers. For example, I can
advertise any thing I want about McD's - but it becomes meaningless
(or even harmful to the Brand) if people don't get it.
<dcporter> Amy - don't know about the specific levels
of advertising for some of those products, Tony the Tiger
specifically (even though we do that at Burnett) - but remember
good advertising is targeted. I never see any laundry detergent
stuff, but I know it is out there for a lot of reasons - really
must consider who they are TRYING to reach.
<tom_a> Doug,
I've noticed some advertisers moving away from representing
the world in white or black to multicultural advertising that
captures the diversity of the world today. Do you have specialists
that help with that at Leo Burnett or do you partner with
ethnic advertising agencies?
<dcporter> Tom - yes, that certainly is a trend - towards
multi-cultural advertising - that could be based on race,
lifestyle, sexual orientation , etc. - take a walk down any
street in a major (or minor!) city - take a look at the people
around you - we really have become that way as a society.
I was recently in parts of Texas and then San Diego - for
instance, in many of those communities Hispanic are totally
dominant.
<moderator> Any final questions for Doug?
<Amy> thank you so much it was a pleasure :)
<cotese> Thank you very much for being available to
speak with us today.
<kathyd> I have learned a great deal and will be able
to apply it to my professional experience immediately! Thanks
Doug! Best Wishes!
<tom_a> Thanks for your afternoon. I learned a lot!
<moderator> Thanks for joining us. The transcript of
this discussion will be posted tomorrow.
<dcporter> Thanks to all of you - I really have enjoyed
my association with AEF and I hope that it is helpful to you
in some capacity whether you are a student, professor, advertising/marketing
professional or just an interested observer!
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