BtoB's 2002 Marketer of the Year
VP-Integrated marketing communications
COMPUTER GIANT IBM CORP., which has historically been a marketing leader in good times and bad, faced this year's challenges with an aggressive marketing strategy. For her work leading this effort, Maureen McGuire, VP-integrated marketing communications, is BtoB's Marketer of the Year.
To meet objectives including boosting awareness of the IBM e-business brand, breaking through the clutter of high-tech advertisers and making the company relevant in the marketplace, McGuire initiated a multiprong marketing effort this year that is showing strong results.
"We needed to make sure people understood that IBM is at the intersection of business and technology," she said. "We got much more integrated in our positioning of IBM as the best provider of e-business infrastructure."
McGuire would not disclose IBM's marketing budget, but media research firm CMR/TNS Media Intelligence estimates IBM spent $141.5 million on media in the first half of 2002, down 10% from media spending of $157.4 million in the first half of 2001.
IBM's most visible marketing effort, its "E-business is the Game. Play to Win." campaign, which launched in January, had a budget estimated at $350 million.
The campaign, developed by Ogilvy & Mather Worldwide, included print, online and television. It was designed to show that IBM has an enormous amount of expertise in business and technology, McGuire said.
"The message is that all the pieces of a company's e-business infrastructure have to work together," McGuire said.
In the second quarter, IBM took the campaign deeper into vertical industry segments, with print and online ads targeting the automotive, banking and retail industries.
The campaign zeroed in on specific applications for companies in these industries. For example, one print ad running in auto publications showed the use of IBM software in product lifecycle management.
The campaign is closely aligned with IBM's restructuring of its sales force about 18 months ago to target vertical industries, McGuire said.
To further its goal of demonstrating business and technology expertise in industry segments, IBM last month broke an eight-page spread in The Wall Street Journal announcing its Business Consulting Services unit, which resulted from the July acquisition of PwC Consulting from PricewaterhouseCoopers.
Also in the fourth quarter, IBM launched a new campaign with the theme of "E-business On Demand," based on its vision of a world in which users expect to be able to accomplish things in real time, McGuire said.
"You can only respond to an on-demand world when you have integrated all your processes," she said. "We understand business and business processes, and we can consult with you to transform the ones you need to transform and integrate your technologies."
McGuire's marketing efforts for IBM's e-business brand are showing successful results. Five years after its launch, awareness of IBM e-business is between 80% and 90%. While McGuire said this number moved up a couple of points since last year, she declined to be specific for competitive reasons.
McGuire said communicating IBM's expertise in business transformation is a huge challenge for the company moving forward into 2003.
BOB ZITO, New York Stock Exchange
JOHN BEYSTEHNER, United Parcel Service of America
ALLISON JOHNSON, Hewlett-Packard Co.
BRIAN PHILIPS, FedEx Corp.
DON CALLAHAN, Morgan Stanley
AMY CURTIS-McINTYRE, JetBlue Airways
DEAN LANDECHE, Hobart Corp.
KERRY HATCH, American Express Corp.
DON GORDON, CDW Computer Centers Inc.
New York Stock Exchange
IN SPITE OF THE RECESSION, corporate accounting scandals, executive indictments and the lingering effects of Sept. 11, the New York Stock Exchange remains a pillar of strength in the American investment community. Part of the reason is the organization's nimble marketing department led by Bob Zito, exec VP-communications.
The most recent challenge confronting the NYSE is the crisis in investor confidence following Enron and other accounting scandals. For Zito, such a situation is best addressed head-on.
In October, the NYSE launched a campaign, developed by BBDO Worldwide, New York, in both TV and print that used the tagline, "The world puts its stock in us."
"You can't hide from the fact that 85 million investors are suffering from a lack of confidence," Zito said. "We have to talk about how we've tightened our ship and toughened our listing standards."
Closed in the aftermath of the Sept. 11 attacks, the NYSE found itself, more than ever, as a symbol of U.S. democracy and capitalism. After some hesitation, Zito decided to trumpet the reopening with print and TV ads using the line, "Let Freedom Ring."
The NYSE later ran ads celebrating firefighters and others working at Ground Zero. To mark the anniversary, the NYSE also ran a TV spot narrated by New York Mayor Rudolph Giuliani. Zito realized the NYSE risked being perceived as taking advantage of the event, but the numbers point to the campaigns enhancing the exchange's reputation.
In the wake of the year's campaigns, unaided awareness of the NYSE is hovering around 97% to 99%, compared with typical figures of 90% to 93%, Zito said.
United Parcel Service of America
Senior VP-worldwide sales and marketing
LIKE ANY MARKETING CHIEF on the cusp of a new campaign launch, John Beystehner, senior VP-worldwide sales and marketing for United Parcel Service of America, had every right to be nervous on Feb. 8, 2002, when his company debuted its aggressive "What can Brown do for you?" campaign in The Wall Street Journal and on NBC's Winter Olympics telecast.
But Beystehner said he had no butterflies. "There wasn't any anxiety," he said. "There was excitement."
Beystehner said his confidence in the campaign, which was developed by the Martin Agency, Richmond, Va., stemmed from its being thoroughly tested with both external and internal audiences.
And now, nearly a year later, research indicates that the Brown campaign has been effective in achieving its main goal: communicating the company's expanded range of capabilities to its many audiences.
Since 1998, UPS has acquired 27 companies that, along with internal initiatives, have broadened its services well beyond the loading dock.
"We go from the C-suite to the mail room," Beystehner said. UPS now offers logistical and other services that help companies with goals ranging from boosting their bottom line to improving customer service.
The Brown campaign, which used TV, radio and print, appears to have effectively tailored the UPS message to reach its various constituencies.
The company's research shows that 94% of CFOs surveyed agreed that the message of the Brown campaign was relevant to them. Similarly, 94% of logistics managers, 93% of shipping managers and 85% of CEOs agreed the message was relevant.
UPS has used the malleable Brown framework for everything from recruitment advertising to placing "What can Brown do for you?" on the cover of the company's annual report. "We do believe that we can do more with this campaign from the standpoint of both internal audiences as well as external ones," Beystehner said.
Senior VP-global brand and communications
ALLISON JOHNSON, senior VP-global brand and communications at Hewlett-Packard Co., had a lot to worry about in 2002-and not just the tough battle over HP's merger with Compaq Computer Corp.
"Broadly in the industry, you had the events of Sept. 11, which left the population pretty unsettled. You had a tough economic environment around the world, and you had corporate scandals that shook people's confidence," Johnson said.
"Layer on top of it for HP a difficult proxy contest and merger to complete, and a lot of speculation about whether or not we'd be able to pull it off. It was a tough year in virtually every respect," she said.
But HP did pull it off, completing the Compaq merger in May and turning in strong results for its fourth fiscal quarter.
To garner support for the merger, Johnson spearheaded an aggressive marketing campaign about why the deal made sense and where HP felt the industry was headed: toward consolidation. "Despite a lot of skepticism and criticism [about the merger], our view of where the market is headed was borne out," Johnson said, pointing to HP's recent earnings report released last month.
For the fourth fiscal quarter, HP reported net earnings of $390 million, compared with a loss of $505 million in the same period last year. Revenue for the period was $18.0 billion, up 9% from $16.5 billion.
"There is a conviction we will be one of the survivors, and we are a stronger company," Johnson said.
HP launched a global brand campaign last month that shows ways people and businesses use the company's technology to solve problems. Goodby Silverstein & Partners, San Francisco, developed the integrated campaign, which includes TV, print, online and outdoor. Johnson did not reveal the budget, but it is estimated at $300 million to $400 million.
Next year, HP will continue the campaign, which has the tagline "Everything is Possible," and will reach further into vertical industry segments, such as financial services, manufacturing and telecommunications.
- Kate Maddox
FEDEX CORP.'S highly visible ad campaign, which is running on TV and radio, outdoor, online and in print, is a powerful branding effort overseen by Brian Philips, VP-U.S. marketing.
The ads, created by FedEx's agency BBDO Worldwide, New York, feature a fast-talking businessman and his distracted colleague bantering about the many ways in which FedEx can help small businesses. "We feel that's an untapped area," Philips said.
The spots, which conclude with the tagline, "Don't worry. There's a FedEx for that," drive home the broad array of services the company offers small businesses, including overnight delivery, ground service and freight. The ads, which launched in September, are an extension of FedEx's "Business Legends" campaign that began last year, also created by BBDO.
In addition to attempting to attract new customers with its advertising, FedEx's marketing staff has focused on retaining existing customers. "You tend to focus on retention in tight economic times," Philips explained. "We put a lot of effort into retaining customers."
A key element in this effort is software that alerts salespeople when customers have made an inordinate amount of calls to the customer service department, have cancelled orders or cancelled their accounts.
In the fall of 2001, FedEx instituted its Online Express Savings Program, providing a 10% discount to small and midsize businesses using shipping tools at fedex.com. "We brought two new customers into the fold for every one existing customer [with the program]," Philips said.
He added that a key to FedEx's long-term success in marketing is an often overlooked characteristic: stability. He pointed out that virtually all of its marketing communications vendors, which include BBDO Worldwide for advertising, have worked with the company for nearly a decade.
- Sean Callahan
CMO-institutional securities division
VENERABLE INVESTMENT bank Morgan Stanley had a visible year in 2002. It legally changed its name from Morgan Stanley Dean Witter & Co., and launched an aggressive advertising campaign that emphasized the brand promise of "client-tailored excellence" to both institutional and individual investors.
But what Don Callahan, Morgan Stanley's CMO-institutional securities division, may be most proud of is the firm's customer relationship management system, which was built by a large internal team and outside consultants, including Digitas.
"We can put advertising out there that we feel represents what we do, that shows we're client-centered, that reinforces the brand," he said. "But the only way we can prove we're client centered to our clients is by providing the insight they need."
Two years ago, Morgan Stanley committed to creating a powerful CRM system that would help salespeople serve customers. The system was to be essential to helping the company live up to its tagline, "One client at a time."
"To get from a brand to acting on it, to really do 'client-tailored excellence,' you really need to know a lot about the client," Callahan said.
After consulting with clients, Morgan Stanley's institutional securities division built three distinct CRM interfaces for its investment banking, fixed-income and equities customers. Callahan credited Morgan Stanley Managing Director Vicki Longo with developing a system that ensures the data is accurate and updated-essential if salespeople are to continue using the system, he said.
He also gave credit to Richard Atkinson, another managing director with the firm, for helping ensure the system was designed to provide the information Morgan Stanley's salespeople needed.
Callahan emphasized that the CRM system wasn't being used to flood client inboxes with e-mail. He said research indicated that clients found that about 5% of e-mails were valuable.
"We're not just giving them information; we're giving them insight," he said. "We're giving them the 5% they're looking for."
- Sean Callahan
WHILE MANY AIRLINES struggle mightily against the slumping economy, JetBlue Airways continues to take off with new air travelers, less than three years after its inaugural flight.
Being the first U.S. airline to offer 24 channels of live satellite TV free at every seat has helped with its success. But an even bigger part of the New York-based carrier's appeal has been its conversational, often humorous advertising campaigns overseen by Amy Curtis-McIntyre, VP-marketing, who makes sure to keep things down to earth.
"Our ambition is to bring back humanity to an industry not known for it," said Curtis-McIntyre, who came up with the name JetBlue prior to the company's 2000 launch. Curtis-McIntyre previously was VP-marketing for Virgin Atlantic Airways.
"We take the product seriously, but the idea is not to take yourself seriously, which relaxes people and lets them know there are real people running this company," she said.
One of this year's major campaigns, "Subway," reflects the airline's approach. In one TV spot, several people are sitting in a subway car, looking glum. The lights flicker, and then 12 JetBlue flight attendants-11 of them actual employees of the company-appear and start to perk up the passengers with pillows and smiles to the tune of "Put a Little Love in Your Heart."
"It's a campy, irreverent kind of message that a lot of people could relate to as they struggled with getting back to flying this year," Curtis-McIntyre said. The campaign was developed by The Ad Store, New York.
The strategy appears to be paying off. In the first nine months of this year, JetBlue's revenues were $165 million compared with $82.6 million in the same period in 2001.
The airline plans to launch a new campaign early next year, including print, radio, TV and billboards.
"We'll continue to focus on the theme that we're not the only way to fly, but we should be," she said.
- Matthew Schwartz
DEAN LANDECHE, VP-brand marketing at Hobart Corp., sums of the success of his company's marketing efforts with a simple statement: "We've done a lot more with less money."
That may be an understatement, considering what Landeche and his team have accomplished this year at the commercial kitchen equipment company.
Taking their cue from automakers, Landeche and his colleagues decided to test 0% financing for leased kitchen equipment to attract potential customers sitting out the purchase cycle because of the economy. The offer included a $1 buyout option at the end of the lease term.
HSR Business to Business Inc., Hobart's agency of record, created an ad campaign that launched in March. The campaign was aimed at commercial kitchen operators and food service providers and.included e-mail, direct mail, trade advertising, promotions and PR.
The campaign was so successful that there was an initial problem meeting demand. "We overwhelmed our system in terms of the number of applications," Landeche said.
In the first six months, Hobart completed more than $5 million in leased equipment deals, and Landeche said that level of response has continued. "We haven't seen a decline or slowdown."
The company also ran an online contest, "Here, There and Everywhere," seeking the best customer product story.
"What we were doing was creating an incredible database of real users," Landeche said. The beauty of the Web-based program was that the company could use the testimonials it received in several ways, including case studies for marketing and PR.
"The biggest reason we've been able to maintain this level of success with declining budgets is our success with integrated campaigns," Landeche said. "We create it once and use it five or six times."
- Carol Krol
American Express Corp.'s Open: The Small Business Network
General Manager-Exec VP
KERRY HATCH, general manager-exec VP of American Express Corp.'s Open: The Small Business Network, said people kept asking her, "How can you launch in a downturn?"
Undeterred, Hatch led American Express Small Business Services through a complete overhaul this year, rebranding the unit as Open: The Small Business Network, the first sub-brand created by American Express.
The move was intended to fend off encroaching competition in "small-business plastic," as Hatch calls it, and to make sure customers and prospects were aware of a dedicated group to meet their small-business needs, particularly in terms of financing.
"As a leader, we felt we needed to set the bar higher in financial services," Hatch said.
An integrated campaign to promote the relaunch debuted in January. The campaign by Ogilvy & Mather and OgilvyOne included direct marketing, print, television, radio, outdoor and online advertising.
Hatch and her group overhauled not only the advertising and branding but virtually the entire operation, adding new products and services. The unit emphasized new Internet services in particular.
"There were radical changes online in what we serve up on the Web," Hatch said, pointing to a new financial services dashboard, centralized bill paying through Paytrust, and enhanced business listings on Citysearch.com.
The revamped unit has also added several new business partners since January, including Cingular Wireless, Dun & Bradstreet, Kinko's, Nextel and Staples.
Hatch hopes to add a robust e-mail alert program in 2003 to communicate closely with individual customers. "You have to find a distribution channel to meet needs in a cost-efficient way, in the timeframe they want it," Hatch said.
A new audience appears to be listening. Online card applications increased 57% in the third quarter of 2002 compared with the same period last year, and Web traffic has increased 20% since the revamp.
- Carol Krol
CDW Computer Centers Inc.
THIS HAS BEEN a tough year for technology marketers as companies slashed their IT budgets, but Don Gordon, VP-advertising at CDW Computer Centers Inc., saw the downturn as an opportunity to establish a leadership position for the company.
"In down times, you cannot let up and become invisible, or less visible, in your advertising," said Gordon, who led the company's highly visible "Empathy," or "Fred," campaign into its second year.
The "Fred" campaign, which won this year's BtoB Sawyer Award for best integrated campaign (see page 20), was developed in conjunction with CDW's ad agency, DWP/Bates Technology, Atlanta. The campaign features a fictitious IT manager who is bombarded with co-workers' technology problems.
"The message Fred delivers to the audience is an acknowledgement that we understand and have compassion for the world of the IT manager, and the world Fred lives in," Gordon said.
During the first year of the campaign, Fred's world was his office, where frustrated colleagues would bring their computer problems. This year, Fred's world was expanded to include the entire office environment, where the audience could experience enterprise IT problems from Fred's viewpoint. Fred is never seen, but the camera acts as his eyes as he wanders down corridors, pokes his head in meeting rooms and wanders into the employee cafeteria, hearing from employees who "fix" their own PCs and think they've "crashed the Internet."
CDW, which sells computer hardware, software and services directly to small and midsize businesses, had a marketing budget of just under $100 million this year, which was flat compared with last year. Gordon said he was able to realize savings through ad prices that were 15% to 20% lower than last year, particularly on TV. CDW has used TV, radio, print, online and direct response for the "Fred" campaign.
The advertising effort seems to be paying off. While other technology companies are struggling, CDW reported net income of $54.9 million, or 63 cents a share, for the third quarter, compared with net income of $43.2 million, or 49 cents a share, for the same period last year. Revenue for the quarter was a record $1.2 billion, up 16.1% from $991 million for the same period last year.
- Kate Maddox