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LEO BURNETT
and Red Nail. (MS&L), and will allow Leo Burnett to offer clients a better-
There are also plans to increase the empowerment share- integrated communications service. The glue that binds these
holding from its current 20% to more than 50%, with staff and units together is a common vision, enunciated in the slogan,
management likely to pick up a respectable slice of the equity. The “There’s power in the diversity of our people and our brands.”
new-look Leo Burnett SA will retain its multibranding approach SMLB, headed by MD Pat Goggin, who worked for seven years
believing that this creates focus and dynamic tension between the at LB Worldwide in Chicago before transferring to SA, and
business units. Red Nail, for example, will retain its branding and executive creative director Cal Bruns remains the backbone of the
continue to operate as a second agency brand in line with practice SA operation. It accounts for half of the group’s staff and most of
elsewhere in the LB Global network. Over the past year, it won its revenue. Business gains over the past year include four new
accounts from Incredible Connection, Revlon and Gauteng provin- brands for Kellogg’s, Ananzi, Johnnic e-Ventures, Johnnic Com-
cial government’s Shared Services Centre (SSC). Though owned munications and Levis. This is in addition to its ongoing work for
by Leo Burnett and sharing multinational brands such as Coca-Cola Light, Fanta,
the same premises, it McDonald’s, Procter & Gamble, Mercedes-Benz, SA
has a distinctive culture Breweries and Liberty. “The benefits of the LB
and approach. Red Nail Worldwide network should not be underestimated.
clients include Alcatel, The ability to tap into the network’s well of in-
5fm, Action Stations, tellectual capital and global expertise delivers a
Mercantile Bank and E- better product to our clients,” says Fasedemi. “No-
Trade. There is scope one understands the emerging market better than
for a second agency SMLB,” he adds, citing creative triumphs such as its
brand in the SA group, highly acclaimed “first kiss” advertisement for Coca-
according to Fasedemi. Cola, shot in Morocco but flighted internationally,
Digital design com- and the spot-on “Diski” township soccer adver-
pany Shape, which is tisement for MTN. Technology and training has
not part of Leo Burnett already delivered substantial productivity gains. “We
SA, will remain indepen- Levis store opening are producing more today, with fewer staff, than we
dent but maintain close did four years ago,” says Fasedemi. Finding quality
ties with the group. Re- staff is a perennial problem given the continued
lationship marketing com- exodus of skills. Leo Burnett SA expects to arrest this
pany LB Interactive hit a rocky patch three years ago when former seepage through a staff package that will give key staff a bigger
MD Clive McClean emigrated to the US, but has been reversed stake in the local operation. But “our biggest problem is our
under Lizanne Jones and Janine Wilson. The public relations unit inability to charge proper value for the work we do. SA ranks fifth
has become part of the global brand, Manning Salvage & Lee in the world creatively, but our fees don’t reflect this.” ■
A
in supposedly dirt-poor countries.
Leo Burnett handles Celtel’s advertising account in Sierra Leone
frica is the final frontier. And global communications through its Nigerian office, which has gained a number of major
groups are in search of new markets. Having con- accounts in recent months. Cadbury Nigeria recently moved its
quered China, Eastern Europe and Latin America over US$2m Bournvita account to Leo Burnett Rosabel, the Nigerian
the past 10 years, advertisers are engaged in a agency. No pitch was required, Cadbury citing the agency’s
scramble for Africa — at least the parts of it that matter. superlative performance on another Cadbury brand. The agency
A new consumerism has seized countries once written off as was also recently awarded the account for a radio campaign on
economic basket cases. Tanzania staged an extraordinary revival behalf of Nigeria Airways after a tough five-way review involving
in the past five years, while Uganda, having survived the Nigeria’s other top agencies.
predations of despots and warlords, is regarded as an The “Keep Walking” campaign for Johnnie
African economic miracle. Nigeria, recently returned to Walker is an adaptation of a global theme,
democratic rule, is battling to eradicate corruption, and Johnnie Walker using inspiring quotes from famous historical
there is hope that peace may at last settle on the figures. African proverbs — such as “Keep
Democratic Republic of Congo (DRC). Tanzania and your eye on the destination and not on where
Mozambique are now among the fastest growing coun- you have stumbled” — are substituted for the
tries in the world, admittedly off a near zero base. wisdom of Abraham Lincoln and others.
Zimbabwe, however, is a notable exception to this tale “African consumers are known to be brand
of success, though democracy and rule of law have not loyal. In poorer communities particularly,
entirely perished thanks to a vigorous and noisy op- sticking to the brands you know and trust is a
position. Last year coup leaders were sent packing in low-risk option,” says Cohen. This means
Ivory Coast, a resounding reversal of West Africa’s brand investment yields a handsome return.
traditional acquiescence to military rule. After some initial hesitancy, SA companies
Advertisers were pressured by clients to accompany kicked off their push into Africa in the mid-
them into these new markets, triggering a scramble for Nineties, with SA mining companies eager to
the biggest and best local agencies. “There’s no substitute replenish declining ore reserves at home.
for local knowledge,” says Cohen. “You need people on the They were followed by retailers and consumer
ground who are familiar with the local scene, and who can add companies such as Pepkor, Profurn and SA Brew-
value in strategy and understanding of the media. eries, and later service companies. Outdoor advertising com-
“SA agencies often make the mistake of trying to deploy SA panies Corpcom and Primedia Outdoor ventured north into Africa
idioms in Africa. We are careful to use the local idiom.” to service the growing demand from SA and multinational com-
Leo Burnett moved into Africa in 1997, building a network of panies for outdoor exposure. But many African cities have now
affiliated offices in Nigeria, Ghana, Ivory Coast, Kenya, Zimbabwe, reached billboard saturation point, says Cohen, and there is more
Morocco and Egypt. opportunity for marketers to make a difference in broadcast
LB does not have offices in the DRC, Congo-Brazzaville, Chad, media, and through interactive activities such as events. “Africa is
Sierra Leone and Uganda. They do, however, have a highly mobile an exciting market,” says Cohen. “People tend to look at the
African “swat” team, lead by Jonny Cohen, and supported by dismal per capita income figures and write it off on this basis.
regional offices. The team travels and works with local clients and What they miss is that more than half the African economy is
media partners in countries where they have no offices. informal, which makes the official figures unreliable as a guide to
Leo Burnett has equity in some of these African agencies, but the potential size of markets.” ■
L
logg’s
eo Xpress is a high speed, below-the-line agency that
concentrates on retail, promotion and design. In the
past couple of months they produced promotional work
for McDonald’s, Vicks, Tampax, Coca-Cola and Kel-
G
closer. Each financial transaction and contact with a customer is The success of this venture has opened doors to other divisions
dutifully logged, furnishing a detailed profile of each customer, within the Liberty group. LB Interactive has a long-established
areth Paul and David Hillier started a new media their buying preferences and their complaints. Some companies relationship with DaimlerChrysler and debis Fleet Management,
company, Shape, two years ago while studying digital have refined this to the point where complaints can be anticipated helping them put together tender documents for government’s
media communications at Vega School of Brand and handled proactively. Taxi Recapitalisation Programme and with Telkom’s fleet man-
Advertising Communications. This was at a time This is great for customers already on board. But how can you agement, which they won.
when agencies were desperate to ride the new media wave, and make that initial contact and, better still, turn it into a sale? “There are certain parts of a tender document that must be
the job offers started rolling in. The pair decided to press on Advertisers recognise that nothing beats the power of one-to- presented in a standard way, but other parts are highly personal,”
alone, moving their embryonic company into vacated office one marketing, either business-to-business or business-to-con- explains Jones. “So there is an opportunity here for one-to-one
premises. “We ended up squatting in a corner of an office park for sumer. At business-to-business it is often the most cost-effective marketing.”
a few months,” says Paul. way to prospect for new clients, or increase To help Honda build customer loyalty, LB
Its creative flair eventually brought it to the attention of Leo business from clients where there is a choice Interactive mailed Honda owners an offer of a
Burnett, and a partnership was struck. Though no equity was of two or three competitors. This prospecting free magazine subscription that elicited a 27%
exchanged, Shape now shares an office with Leo Burnett in centralise certain noncore-government services. Red Nail is is the job of Leo Burnett Interactive, the Lizanne Jones and response, says Jones.
Sunninghill and collaborates on certain projects. “Much of our creating the advertising campaign, Shape is responsible for new relationship-marketing arm. Janine Wilson Other clients include FedEx, executive search
work now comes from Leo Burnett,” says Paul. The company has media, including multimedia and Internet projects. Relationship marketing is about getting up company TranSearch and I-Net Bridge, which
grown from two to 10 staff, with an average age of 23. New media has had a bad rap, with dot-coms folding left and close and personal with potential customers repositioned itself as a business-to-business
Shape’s first client was sweet company Cosmic Candy, a young right and thousands of staff being retrenched. Paul is anxious to and business prospects, discovering their hob- electronic hub, broadening its offerings of busi-
business now headquartered in Greece. Rather than do the distance Shape from the e-commerce wave. “We’re not an IT or e- bies and getting their attention. In one case, ness and financial information. “We helped with
standard packaging design, Paul and Hillier invented cartoon commerce company. There are plenty of people out there able to Leo Burnett Interactive discovered that the the development of I-Net Bridge’s repositioning
characters and imbued them with mischievous personalities to develop Websites. We develop marketing and promotion solutions CEO of a large mining group it was targeting on and spearheaded the activity, which we co-
help Cosmic Candy sell its sweets. It worked like a charm, and the using the electronic media. Clients often come to us with behalf of a client was a bonsai fundi. It pur- ordinated with other business units in Leo
sweets are now sold throughout Europe, and SA. proposals for an electronic brochure. We show them what can be chased a bonsai tree in Taiwan, had it pho- Burnett,” says Jones.
“We got so close to Cosmic Candy that we were on the point of done. Companies often don’t know what to spend on online tographed alongside a woman holding a news- TranSearch is based in SA and Paris, with
moving to Greece to help the company expand,” says Paul. They ventures. They may put money aside for building a Website, but paper with the date clearly displayed, and operations in 58 countries. Jones says the
didn’t move, but the relationship with Cosmic Candy has grown little if anything to market it.” delivered the bonsai to the CEO the following brief involved developing a brand essence for
from strength to strength. “We’re like family,” he says. One of Shape’s earliest creations was the Website for local rock day. “We got the attention of the CEO and the the group, and a relaunch of the brand in-
The original cartoon concept is about to be developed into a 12- band Boo! (www.boo.co.za), which was recognised by Johnnic client got the business,” says Lizanne Jones of ternationally.
part television series and a full-length movie, according to Paul. e-Ventures as one of the 10 most visited sites in its category in SA. LB Interactive. Relationship marketing is a fast growing part
The packaging designed by Shape for Cosmic Candy has had other Some of its most visible pieces of work have been a TV and FedEx uses relationship marketing to great of the agency business, evidence of its ef-
spin-offs: “Cosmic Candy claims to have received orders from cinema advertisement for Kellogg's Krispies Treats, low-budget effect, sending boxes of coffee or wine glasses fectiveness in winning new business. “It allows
people based on the package design.” animated TV advertisements to accompany the launch of the to decision makers to get their attention, as you to get a specific message across to a
Shape is a new media company providing broadcast animation, Mercedes-Benz A class and a 30-second animated TV ad- part of a loyalty building campaign. LB In- specific person,” says Jones. “Companies are
digital design and online promotion. With Leo Burnett advertising vertisement for MTN produced in 24 hours. teractive has used personal direct mailings to recognising it as a direct and cost-effective way
subsidiary Red Nail, it recently won an account from the Gauteng Why has Shape succeeded where so may others have failed? help Mercedes-Benz sell more trucks and to to win new business or increase business from
provincial government’s Shared Service Centre (SSC) which will “Because we make sure that it remains fun,” says Paul. ■ Liberty portfolio clients, helping reinforce its clients.” ■
152 AdFocus/Supplement to the Financial Mail/May 18 2001 AdFocus/Supplement to the Financial Mail/May 18 2001 153
AGENCY FOCUS LEO BURNETT
Telling it like it is
vertisement for MTN was that Vodacom has snapped up
rights to SA’s top teams. Leo Burnett’s answer was to
Liberty “dreams” campaign showcase diski, the name used to describe township
A
soccer where personal style and flair are valued above
teamwork. “Our guys dug into the soul of the game and our
part from being the world’s most recognised brand, adverts struck a nerve for MTN with their insight and flair,” says
or perhaps because of it, Coca-Cola has produced Mina. Informal feedback suggests the campaign was well loved by
some of the most memorable advertisements of all soccer fans.
time. Sometimes great adverts are out there just waiting to be
Last year, Sonnenberg Murphy Leo made. When Bruns heard that 28 South Africans planned
Burnett (SMLB) produced First Kiss, to hire Wembley Stadium for an afternoon to live out their
about a Moroccan boy who likens a dream by “worshipping at the altar of football”, he iden-
sip of Coke to kissing a girl — only tified this as a perfect example of people “at Liberty” to
better. This highly acclaimed com- write their own life stories. “While the game was played in
mercial was created by SA but an empty stadium and only a Queen lookalike handed out a
flighted internationally. To add to the cup to the winning team, this dream come true made a
authenticity, a local boy who had compelling example of what Liberty’s financial planning
never tasted Coke was found and can do. Campaigns are most effective when they reflect
his first sip captured on film. truth in surprising ways.”
Another locally produced home The message accompanying the launch of the quirky
run was the story of a township Mercedes-Benz A class was “odd is in”. Rather than the
entrepreneur who grows up with usual presentation of a shiny car going through its paces
Coca-Cola: first drinking it, then sell- on the open road, SMLB’s “Jealousy makes you nasty”
ing it from a pushbike, and later advertisement probed non-owner’s reactions to the new
from a truck. ‘When the Sun Rises’ design by depicting a young man in
reveals how Coca-Cola puts money a suit splashing mud on a new C
back into communities by creating class Mercedes-Benz. “The risk of
jobs. The visual effect of a painting, not showing the car in its shiny, Cal Bruns
in which characters appear to come pristine form was overshadowed
to life, deepens the impact of the by the pure, honest truth of the
message. message,” says Bruns.
Basil Mina, deputy executive cre- The campaign worked, with the C
ative director of the agency and re- class back-ordered until 2002.
sponsible for the Coke adverts says: An even greater challenge was
“The visual effect created by super- developing a workable campaign
imposing shots of painted walls and for Ananzi, the Internet portal,
sky over the scenes gives the com- which had little brand loyalty two
mercial a painterly effect with a years ago. “We researched all the
uniquely township flavour. Its artful- things Ananzi can do and found it
ness creates an air of dignity that’s was exceptionally fast,” says
well deserved.” Bruns. “This led us to the ‘Find it
“We believe in making adverts that fast’ campaign line, which we ex-
get under people’s skin,” says Cal ecuted in absolutely outrageous
Bruns, executive creative director at ways, to great success. Ananzi’s
SMLB. “The truth is, when you touch page impressions have gone from
a nerve, you make a real connection. 1,5m to 4m a month since the
We believe it’s at this level that campaign was launched.”
brands are built. There’s no award Though creative awards are wel-
better than being at a restaurant come, client longevity is the great-
and hearing people talk about one of est reward for creative excellence,
our advertisements. It shows we Coke, Lion, MTN adds Goggin. SMLB’s relationship
created real impact.” with Mercedes-Benz goes back 36
Mina says the challenge in coming years, Liberty 11 years, and SA
up with a soccer sponsorship ad- Breweries 15 years. ■
Hammering home
the credentials
Kevin Kleynhans, James Daniels
Durban agency is on the crest of a wave
R B
Sexy guys are ‘fluid and dynamic’
ed Nail, 100% owned by Leo Burnett Holdings, tripled rowsing through the boardroom of Durban-based Flag-
its business in the five months to March, picking up ship Communications tells you a lot about what puts
the Incredible Connection, Revlon, Colemer and the wind in their sails. First sight of the solid, functional,
Gauteng Shared Services Centre, lifting its billings to a rather than ostentatious, hardwood furniture and
projected R100m. “We’ve started to apply the brakes,” says MD meticulously displayed naval memorabilia gives one the feeling of
Grant Baker. “We don’t want to overstretch being in the Captain’s cabin. But that’s hardly surprising and totally
ourselves.” Other clients include 5fm, I Fusion, in keeping with the organisation’s name. The feel-good vibe is
Global Technologies, E*Trade, Mobil, Action further enhanced by the fact that Flagship’s Berea offices just
Stations, e.tv and Mercantile Bank. happen to overlook the country’s largest port.
Now 12 years young, Red Nail was better But there is more to it than that. Scratch below the surface and
known as a below-the-line agency until pressed one discovers that far from simply being an attractive display, the
by clients to take on advertising assignments as theme closely reflects many of the values to which the or-
Grant Baker
a way of ensuring creative consistency. In ganisation aspires.
1995 it won two Loerie Grands Prix and 11 MD, founder, and creative director Craig Clay-Smith puts it this
Golds for below-the-line work. Then it moved line, “Where others way: “Though we have no direct maritime connections, we identify
above the line and grabbed attention with see recession, we see closely with the ethos of the sea and along with the strong
arresting campaigns for clients such as 5fm, growth”, for Alliance characteristics the nautical environment brings out in people.
SAA and Cadbury’s. Baker ascribes much of the Capital. “The client Things like: Boldly navigating previously uncharted waters and
agency’s success to the creative team — liked the idea, but it discovering new worlds; adventure; teamwork and rowing to-
headed by Kevin Kleynhans and James Daniels took us five months to gether; self reliance, coupled with hard work in having to tackle
— and an aggressive expansion programme. It Nutriphase, pluck up the courage challenges as they arise; and staying on an even keel in an
ditched much of the small-scale project work Alliance to ask Manuel’s per- environment (the ocean) which changes every millisecond.”
that had been its bread and butter and styled Odyssey mission,” says One could probably add to that a few other characteristics like
itself a “through-the-line” agency, handling ev- Daniels. “He agreed right away.” Timed to co- self-confidence rather than boastfulness, making actions mean-
erything from in-store promotions to TV ads. incide with the Budget, it became a talking point. “The ad put ingful (read giving value for money) and sinking or swimming with Clockwise. . . Donovan Kennedy, Jon Ivins, Grant Walker,
It was helped by some particularly successful Alliance on the map, which is what they wanted,” says your crewmates (read colleagues and clients). Daryl Harris and Craig Clay-Smith
creative coups. One was SAA’s Olympic plane Daniels. “It was cheeky, yes, but effective — and it brought us That said, what is Flagship? Some might describe it as a
(Ndizani) painted in stark African colours and new business.” Kleynhans cites other creative successes for through-the-line agency, but Clay-Smith strongly rejects this per-
seen around the world. One of the cheekiest Nutriphase dog food, and Cadbury’s “milk moustache” cam-
framed Finance Minister Trevor Manuel’s nor- paign, borrowing a US idea, and playing on the “glass and a
mally bald head in an Afro hairstyle with the half in every bar” platform. Market share rose nearly 7%. ■
Helping PR
come of age
with the advertising
agency. This is in line
with MS&L’s strategy. In
the past, PR supported
advertising, but the
Nick
Motsatse
FLAGSHIP
F
MS&L philosophy is that
PR builds brands, and
asedemi Newman Leo Burnett (FNLB), the public re- advertising defends
lations arm of Leo Burnett SA, has been rebranded brands.” Companies, it ception: “We are a communications group that owns specialist
Manning Selvage & Lee (SA), the global PR network seems, are starting to divisions — 10 in all with the latest addition, a PR company at the
owned by Leo Burnett Worldwide’s parent company, appreciate the value of beginning of the year — each addressing its market sector, but
BCom3. MS&L is the world’s tenth largest public relations firm PR. Many advertising working closely with its in-house partners to provide clients with
and is renowned for its counsel, supported by proprietary re- budgets are shrinking, broadly based solutions. The divisions include above- and below-
search and brand-building tools. “The network will be a huge but PR budgets in- the-line expertise, but also encompass a wide variety of other skills
advantage for clients building a global presence, or research into creased by 30% last from PR to change management."
their markets,” says FNLB vice-chairman Jenni Newman. “We will year according to a In short, he adds, Flagship’s aim is to be a group of specialists
be able to plan global PR campaigns for clients and give them study by the Public Relations In- who operate autonomously while working the synergies with
access to international media, which is virtually impossible for a stitute of SA. Using a variety of clients covering the broad communications spectrum.
PR agency with no global network.” Traditional PR firms tend to be proprietary research and brand- The concepts of change management “pushing the paradigm”
press release factories, measuring their success in terms of building tools, MS&L has been Jenni crop up repeatedly in any conversation with Clay-Smith and his
column centimetres of press coverage. They serve a vital function able to raise the effectiveness of Newman fellow directors Daryl Harris (group planning) and Donovan
by feeding news stories to the bureaus, but they remain, by and its marketing campaigns. Suc- Kennedy (account director). They see Flagship as being about
large, on the periphery of the businesses they serve. MS&L has cess is no longer measured in change and change management. “If clients want an ad agency to
turned this around by placing itself at the centre of the brand- centimetre columns of press cov- Top left to right . . . Sam September, create communications without challenging the paradigm, then
building process. erage. “PR has gone way beyond Beverley Theron,Craig Clay-Smith,Tanya Flagship isn’t for them.
“We want to differentiate ourselves through our input,” says that. Companies want PR cam- Altshuler, Lesley Wright, AJ Brindley, Holly- “If, however, they want us to challenge the paradigm and
FNLB MD Nick Motsatse. “With many of our newer clients, we paigns to focus on their brands,” Anne Ford, Daryl Harris, Clarke Balie, challenge them to think differently, that is what we are about,”
take over the marketing communications and then work closely says Newman. ■ Bottom . . . Jon Ivins, Russel Watson, Grant explains Kennedy.
Walker, Grant Walker, Aradhna Padayachee,
158 AdFocus/Supplement to the Financial Mail/May 18 2001 Donovan Kennedy AdFocus/Supplement to the Financial Mail/May 18 2001 159