JWT China Summarywewe3w
JWT China Summarywewe3w
JWT China Summarywewe3w
JWT CHINA
CEO JWT Greater China and Northeast Asia Area Director - Tom
Doctorof
JWT's headquarters - Shanghai
Doctorof thought about future of advertising industry in china.
Signs were everywhere.
High-rise towers, shopping centers, foreign and domestic cars, desire
of mobility, billboards of cosmetics cars and watches, patriotic signs all showed potential of China to become political and economic
JWT IN CHINA
1988 - Created 1st research study of consumer lifestyles "Life stages" "We believe in being cultural anthropologists first, advertising people
second."
1990 - JWT entered China market - office in Beijing
1991 - office in Shanghai
1998 - Doctorof joined JWT Shanghai as managing director.
90% of companys revenue came from two MNCs, Pepsi & Unilever.
Between 1998 and 2008, JWT China became one of the largest
integrated communications companies in China and Shanghai became
Director.
1996 - Lo Sheung Yan joined JWT
2001 - He was executive creative director of JWT Northeast Asia.
1997 - Rattan Malli moved from Taiwan office to Shanghai office. Hw
JWT China.
2007 - It was voted as TOP AGENCY IN CHINA in advertising industry's
capabilities.
Trip was organized once a year.
Leadership and skilled labor was considered as biggest assets of the
company.
English and Chinese were considered office languages but Mandarin
was considered FIRST language.
BEIJING OFFICE
business
With 15% gross profit margin, their revenue increased from $2million in
1998 to $11 in 2008
shares
October 2003 - JWT presence in China was still not stable.
ALWAYS IS EVERYWHERE
2006 - Marketing & Sales co. ALWAYS (founded by Cai Hua) was
acquired by JWT.
JWT took 70% stake of the company
CAI HUA - Degree in Chemistry from Beijing University; Impressive
experience in sales; worked for P&G, Hershey's, Gillette and other
traditional advertising
2008 - JWT took 51% stake in Gaendinning, WPP management
consultancy partnering with Always.
TEAM JWT
marketing services
Team JWT had to work as closely as possible requiring sharing of
Always?
End of 2008 - JWT entered revenue-sharing alliance with IDENTICA
(branding and visual identity expertise) and LINKSUS (one of China's
largest PR agencies). It expressed willingness to consider a closer
sensitive.
Mid-sized and large companies even Chinese firms thinking about
starting initial public ofering (IPO) took services from JWT.
ADVERTISING IN CHINA
conceptualization capabilities.
But in order to broaden, some used unconventional associations.
Local clients presented diferent challenges for JWT compared with
foreign clients.
Because of no track record, Institutional and Managerial structures
were not set up as part of firm.
Most clients were sales-driven making it difficult for long term brand
vision.
Foreign clients were systematic but local clients required flexibility.
So making loyalty of local clients was difficult for JWT and they
considered two year relationship a considerable success.
wealth
2006 - They possessed 40%
Inconsistent spending amongst diferent tiers required advertising
companies to target potential customers only
EXAMPLE
behavior
Under MAO ZEDONG, role of individual consumer did not exist in a
informed participant.
2006 - Top three advertising categories in China were pharmaceuticals,
publicity.
Middle class was self-centered.
PAGE 9. LAST TWO PARAGRAPHS.
YOU WILL HAVE TO READ THEM. THEY ARE ADVERTISEMENTS.
China was considered OLD MEDIA market i.e. tv radio etc were still
mode of advertising
2006 - all chinese urban and mostly rural households owned a tv
Newspaper sales was impressive with 20% growth compared to last
by 2006. But only 19 out of every 100 Chinese had access to Internet
2006 Survey - 76% used internet at home, 33.4% at work, 32.3% at
internet cafe.
25-30 years old (25%), above 40 years (2.5%)
58.3% male, 41.7% female
2008 - 5% of companies budget was spent on online ad
10% of JWTs ads for ford were transmitted through Internet
ISSUE:It was difficult to determine how successful internet ads had
been
2007 Annual Report of WPP - media growth in china was projected to
Commerce (SAIC)
Marketing strategies of MNEs successful in other countries could not be
automatically transplanted into china market
2008 Olympics - Chance for china to present local Chinese and foreign
ANTA sports Products and Liland were not chosen but got involved by
Olympics
Yili chose Liu Xiang to be a spokesperson
advertising agencies
By 2017, it is estimation that there would be 270 million chinese