Advertisements
 

Rosenfeld’s wretched road to Mondelez

March 22, 2012

By and large, corporate life is no laughing matter. One exception – and a cause of bottomless mirth at that – is the pompous business of corporate name-minting.

Latest in a long line of jokes is “Mondelez International”. What, you ask? It’s the new monicker for the Kraft spin-off snack business which will shortly be headed by Irene Rosenfeld, after offloading the lumbering US grocery business onto poor old Tony Vernon.

One of Vernon’s few high cards will be the fact that he retains the Kraft name which, whatever its downmarket connotations, has the merit of being agreeably monosyllabic and memorable.

If only we could say the same for Mondelez International. Why, oh why (as The Daily Mail might put it) couldn’t it take the Cadbury name? After all, organisationally and with the exception of a few Kraft legacy brands such as Oreo, Mondelez is the ex-Cadbury company. It faithfully maps Cadbury’s emerging markets strategy and, if it is to achieve the higher margin growth commonly associated with the snack sector, that will in no small part be due to the dominance of Cadbury brands within its portfolio.

Instead of the instant mnemonic, however, we have the instantly forgettable “Mondelez”. Apparently, this was dredged up from an exhaustive trawl of 2,000 ideas – fashionably and inexpensively crowd-sourced from Kraft employees. The ultimate choice was, in fact, a portmanteau word derived from one suggestion fielded in America and another in Europe. Which probably tells you all you need to know about Rosenfeld’s imaginative powers. Camel, horse, committee anyone?

On second thoughts, however, I’m not entirely convinced by this folksy little conceit of hers. “Mondelez” has about it a strong whiff of corporate ID specialist. Allegedly it’s a bit of cod-Latin, derived from a hybrid of mundus (world) and delectatio (delight or pleasure), which is more readily understood by substituting the French modern equivalents “monde” and “délice”. Note the subtle potential French wordplay – Mon délice – perfect but for the fact it is grammatically incorrect, délice being feminine.

What does all this remind you of? Yes, right first time: Diageo, Altria, Aviva and most memorable of all – for the wrong reasons – Consignia. All of these rejoice in being bland latinisms (although Diageo sounds all Greek to me – dia, “through”; geo, “world”: but let’s not get pedantic about it). It seems a curious irony that at a time when interest in classical languages is at an all time low, corporate identity specialists have turned their abuse into a high art form.

And, in their earnestness not to create offence by minting something more meaningful, have often achieved laughable results. Take Aviva for example. On one reading, it could mean “Without life”.

As for Mondelez, which Americans clearly have difficulty in pronouncing, I shall leave you with the wise words of Sharon Shedroff, founder of San Diego consulting firm Strategic Vision Inc:

“Until the brand is established, it will be difficult for people to give it meaning in the US and probably in Asia. Brands under it, like Oreo, could lend credibility to Mondelez.”

So why go to the trouble and expense in the first place?

Advertisements

Tamara Minick-Scokalo resurfaces in top role at Pearson

February 22, 2012

The career of high-flying international executive Tamara Minick-Scokalo has, it seems, become a staple feature of this blog. So it might be of interest to note that she has just landed another top job.

Pearson, owner among other things of The Financial Times and Penguin, has picked her as president Europe, Middle East, Africa and the Caribbean of its education business.

Minick-Scokalo, who is currently based in Geneva, has had a somewhat chequered résumé in recent years. Twenty years into a marketing career at Procter & Gamble, she briefly switched to senior European marketing roles at EJ Gallo and Elizabeth Arden before surfacing at Cadbury as head of global commerce in 2007. That move was a success, but the subsequent appointment to president of Cadbury Europe was not: she left less than a year later. Only to emerge triumphant and phoenix-like, in 2010, as the new president of chocolate Europe, following Kraft’s takeover of Cadbury.

But the title was an illusion, and carried much less weight than her previous operational role at Cadbury. Minick-Scokalo – like other senior ex-Cadburyites – seems to have found Kraft excessively bureaucratic and the idea of a career centered in Zurich frankly unappetising.

She left less than 6 months later, and – interestingly for such a corporate creature – set up as an entrepreneur. Trax, which is what she founded, is an IT/sales and marketing operation specialising in retail. What will happen to it now, I have no idea.

The international education division, headed by chief executive John Fallon, is viewed as one of Pearson’s most aggressively expanding operations. It has made several large scale acquisitions in recent years, including the Wall Street education business and the China-based Global Education and Technology Group. Minick-Scokalo clearly has experience of corporate integration at the highest level. Nevertheless, her marketing pedigree is probably more in demand at Pearson.


Kraft split raises more doubts about value of Cadbury takeover

August 4, 2011

On hearing that Kraft intended to split it operation into two, the first image that came to my mind was that of the Grand Old Duke of York.

Hopefully (for the sake of shareholders if no one else) Kraft chief Irene Rosenfeld’s grasp of tactics is superior to that of the benighted generalissimo. But we cannot be sure at this stage and nor – judging by their confused reaction – are some of Kraft’s investors.

True, one of the most tiresome of these – corporate raider Nelson Peltz, who has been endlessly belabouring Rosenfeld for Kraft’s dead-in-the-water share price – thinks it’s a great idea to split the lumbering behemoth into a fast-track candy and snacks company centred on emerging markets (and by implication double digit growth) while leaving the dreary North American grocery business to slumber on as a “yield centre” with a no-hope share price.

According to his logic, Rosenfeld has been playing a long and crafty (sorry) strategic game, in which the $19bn Cadbury hostile takeover was only the first move. Rosenfeld needed Cadbury for its dominance in emerging markets, so she could reshape Kraft’s existing snack lines into a global growth business. Warren Buffett, another long-time Rosenfeld critic, seems to have adopted the same line, albeit in more muted language.

Having met Rosenfeld, I can attest that she indeed a very sharp cookie. But whether she has been that crafty I – and rather more importantly, many members of the investment community – have reason to question.

Undoubtedly she has been limbering up a dramatic piece of financial engineering for some time. But maybe that’s all it is: one last, opportunistic, throw of the corporate dice to get two of her most irksome and powerful critics off her back.

Here’s the flaw in the grand strategy theory. If Rosenfeld had the idea of capturing access to developing markets all along, how come she so successfully managed to jettison all the senior people who knew anything about exploiting them? I am of course talking about virtually the entire senior tier of Cadbury management, which formed a queue to the exit within months of the takeover in early 2010.

I am afraid Kraft lifer Tim Cofer – if that’s who ends up getting the top job at Kraft Snacks and Candy – simply won’t cut the mustard by comparison.

If Kraft, in buying Cadbury, was merely parlaying itself into the world’s emerging markets, it chose a peculiarly clumsy and perverse way to do it.


Creative momentum for M&C, Wieden, Del Campo and – of course – BBDO

January 24, 2011

Just like the business and financial world, the advertising creative industry has its reporting seasons. The Cannes Festival represents the annual benchmark and we are now at the interim stage, with the Gunn Report and AdAge – the industry’s biggest trade paper – issuing their verdicts.

To stretch the analogy a little further, these awards “analysts” heavily favour momentum stocks. That may be because – like their financial counterparts – they’re at heart an unadventurous lot who don’t like nasty surprises. Win at Cannes, and the chances are you’ll pick up a truckload of gongs elsewhere. King of the number-crunchers is the Gunn Report, which resembles Wall Street’s Quants in more ways than one. To quantitative analysis, which monitors an agency’s creative performance over many years and almost every conceivable awards scheme, is added a mysterious proprietary ingredient. We’re never quite sure of the relative weight put on the data. How else explain BBDO’s preeminence as top network for the fifth successive year?

Enough of this. The point I’m making is there are no great surprises at the half-way stage, although some of the results are well worth highlighting (BBDO’s not excluded). Rather pleasingly, M&C Saatchi’s print campaign for Dixons (honourable mentions at Cannes; it also picked up a top award at Epica) was Gunn’s global winner. The art of long copy is not yet dead.

With similar predictability, Wieden & Kennedy was garlanded  AdAge’s Agency of the Year, primarily on the strength of Old Spice Guy. And rightly so. Anyone who can create celebrity out of Procter & Gamble advertising deserves a medal: especially so when the now lionised brand was as hopelessly quaint as Old Spice.

While we’re there, a nod in the direction of AdAge’s International Agency of the Year, Buenos Aires-based Del Campo Nazca Saatchi. Del Campo, which has just celebrated its first ten years, is the epitome of a rolling creative revolution which has now persuaded some premier league clients to consider Latin America as their first port of call when devising a global campaign. In Del Campos’ case, it has just been added to Coca-Cola’s international roster.

The secret of its success seems to be a carefully blended balance of creativity and planning, reminiscent of Boase Massimi Pollitt in the Eighties. Here, at any rate, are a couple of examples of its work. The famous Teletransporter commercial, for Andes beer, which was lauded at Cannes:

And Chocolate Meter, for Kraft, which has apparently resulted in a 50% increase in Cadbury sales:


That was quick – Tamara Minick-Scokalo quits Kraft. Ignasi Ricou goes too

October 12, 2010

Whatever is going on at Kraft’s newly swelled confectionery division (formerly known as Cadbury)? Two top executives are walking, both allegedly for “personal reasons”. And one of them – head of European chocolate Tamara Minick-Scokalo – was hired only a few months ago.

Ignasi Ricou, the other executive to depart, is just the sort of top management Kraft can least afford to lose. After the controversial $20bn Kraft takeover earlier this year, Cadbury operations accounted for about 80% of Kraft’s confectionery interests worldwide – and punched even further above their weight in fast-growing emerging markets. Clearly Cadbury management continuity – at least in the medium term – is critical to bedding down what Kraft has acquired. Ricou was apparently a showcase example of continuity in action. He joined Cadbury in 2003 and rose to president of European operations just prior to the hostile takeover bid. Post-merger, he agreed to stay on as head of European sales and the (high-margin) gum and “candy” business.

In some ways the trajectory of Minick-Scokalo has been even more bizarre. Originally from Procter & Gamble, she was parachuted into Cadbury in 2007 as global commercial director, then made head of European operations in late 2008. The graft didn’t take: after seven months in the new job, she was fired and Ricou took over. But that wasn’t the end of the story. By spring this year, she was back at her old job – well almost – helping to fuse Cadbury chocolate culture with Kraft’s. Evidently it has proved pretty immiscible.

And that’s not the only evidence of the post-merger fabric coming unknitted. Look around and you will find painfully few senior Cadbury executives still in command. Trevor Bond, who used to be in charge of Cadbury in the UK, has become Kraft overseer in Europe and now takes on some of Ricou’s role; there’s also Marcus Grasso in Brazil, and Mouli Venkatesan and Narayan Sundararaman in India.

One intriguing survivor is Mark Reckitt, formerly Cadbury’s chief strategy officer – who played a key role in integrating the two operations after the merger. Formally, Reckitt left in July. But he’s back in a consultancy role, one day a week, managing the shop at Green & Black, the organic chocolate division. It would be no surprise to find Reckitt – in due course – heading a management buyout of the operation. It’s difficult to see what alternative fate awaits a premium organic chocolate brand tucked among all those processed foods.

Irene Rosenfeld, Kraft chief executive and the takeover’s architect, will shortly be visiting these shores for the first time since the merger. On her agenda will be some factory visits and a bit of political schmoozing. It sounds as if she’s just in time to deal with a few unscheduled senior management problems as well. No doubt Rosenfeld will pass off Minick-Scokalo and Ricou as transitional management whose time had come to an end. I’m not sure Kraft shareholders will agree with her, though. Too much command and control from Northfield, Illinois would be my verdict.

I’ll keep you posted.


Phil Rumbol lays his reputation for creativity on the line

September 8, 2010

For months it has been an open secret that Phil Rumbol, former Cadbury marketing director, was plotting to set up an advertising agency. The trouble was, most of us were on the wrong scent; the idea being he was going to head the London arm of Omnicom’s creative boutique, Goodby Silverstein & Partners.

At the same time, there were ominous rumblings of discontent at Fallon, the creative outpost of SSF, which also runs Saatchi & Saatchi London. Fallon – once highly praised for its Sony Bravia and Cadbury work – has latterly been dubbed “Fallen” by industry wags who, no doubt, have in mind the successive loss of the £70m Asda account, Sony, and the transfer of the £100m Cadbury account to Saatchi after some controversial Flake work went awry. The talk was of a possible management buyout. In the event, it is chairman Laurence Green and creative director Richard Flintham, rather than the agency, who have walked.

What we had failed to do was mix these two things together and make an explosive compound. All the more so since the story – broken by my colleague Sonoo Singh, editor of Pitch – has self-detonated in the very week that Saatchi & Saatchi celebrates 40 years of success in its party of the decade.

Details remain sketchy. We don’t, for example, know what the breakaway agency is to be called, nor whether it has any business. Kerry Foods has popped into the frame, specifically the Wall’s sausage brand. If so, it must be a gift from Saatchi.

Whether that’s the case or not, what’s really interesting about this start-up is the key role being played by a former client. Rumbol, so far as I can make out, has never worked in an agency himself, but he has had a distinguished career as a client, which has resulted in some memorable advertising. Boddington’s Cream of Manchester campaign was one of his early achievements, he was the Stella client (need I say more), and the commissioning force behind Cadbury’s Gorilla and Eyebrows campaign, not to mention the more controversial launch campaign for Trident chewing gum.

Rare is the client with such a creative pedigree. Possible examples: David Patton, patron of the Sony Bravia “Colour like no other” campaign; Simon Thompson, long-time sponsor of Honda ads such as ‘”Cog” and “Grr” ; and – long ago – Tony Simonds-Gooding, who tore up some unsupportive research and gave Lowe Howard-Spink the go-ahead with ‘Heineken refreshes the parts other beers can’t reach’. Rarer still is the client who is physically involved in a start-up and prepared to put his reputation, and possibly career, on the line; as rare in fact as hens’ teeth. It’s said that Rumbol earlier got close to signing a deal with Goodby, but that the stumbling block was the creative process, which would be shipped out to HQ in San Francisco. I can well believe it. Here’s someone who clearly has the courage of his convictions.

POSTSCRIPT: Spookily, Fallon has just conjured a new chief executive out of the hat, after a 6-month search. She is Gail Gallie, who was responsible for the BBC becoming Fallon’s first client in 1998.

PPS. It has been pointed out to me that the nearest precedent to Rumbol is the revered John Bartle. Oddly enough, Bartle himself was a Cadbury client. He worked at the confectionery and food company for eight years and, among other things, fostered Boase Massimi Pollitt’s celebrated Smash campaign. The significant difference with Rumbol is that Bartle then spent nine years in an advertising agency, TBWA, before forming the breakaway group that set up Bartle Bogle Hegarty in 1982.

UPDATE 24/12/10: The new agency is to be called 101 (not, thankfully, Room 101). The name has nothing to do with the agency’s official opening day, 10/1/11 – I’m told by a reliable source. We have yet to learn whether it has landed a big fish.


Rumbol and Sleight departures flag up threat to UK-centric marketers

April 28, 2010

Are the imminent departures of high-profile marketers Phil Rumbol and Cathryn Sleight, from Cadbury and Coca-Cola GB respectively, by any chance related? In one important respect they most certainly are: both are casualties of globalisation. The corporate circumstances may be different, but the underlying cause has been the same.

Cadbury had its destiny decided for it by the deus ex machina of corporate takeover. A successful global company with a premier-league set of brands and high-octane growth prospects in emerging markets, it nevertheless had significant vulnerabilities – particularly in Europe – which Kraft was able to exploit with the seductive promise of greater efficiencies and economies of scale should the two companies “merge”.

Coca-Cola has reacted to similar cost inefficiencies in its mature European operations by embarking on an internally generated “rationalisation” programme which will reduce its ten existing European business units to four. Coke is in no way a potential takeover target, but may well be reacting to investor pressure.

In the words of Dominique Reiniche, president of Coca-Cola Europe: “The changes we are making will simplify the way we operate in all areas of the business. This will drive efficiency by enabling us to be faster to market and to increase the scale of our activities across Europe.” He does not mention shareholders, but we can be pretty certain they will be gratified by the extra margins generated. Perhaps coincidentally (given his hostility to the Cadbury bid), Warren Buffett – near enough the world’s wealthiest man – is a significant investor in both Kraft and Coke.

One side-effect of both company restructures has been to subordinate national marketing units to a new pan-European marketing management team. As will be seen, that has implications for ambitious UK marketers – not all of them positive.

In the Kraft/Cadbury case, things could have turned out well for Rumbol had he chosen to toe the new corporate line. Far from being made redundant (unlike many senior colleagues), he was slated for promotion to a new pan-European marketing role. The only problem was (so we are told), Rumbol’s new job would be based in Zurich and he did not wish to relocate his family there. So, he hasn’t… What may also have troubled him was that the new role was in some ways more narrowly defined than his present one. Its remit was chocolate (now under the auspices of former Cadbury executive Tamara Minick-Scokalo), to the exclusion of the gum and boiled sweets sectors.

As for the role of Coca-Cola GB marketing director – Sleight’s fiefdom since 2006 – it has been axed. The function will now be folded into a broader role operating out of NWEN, the new pan-European unit consisting of Iberia, Germany, North West Europe and “Nordics” headed by Sanjay Guha. Guha will assume the title marketing and Olympics director, NWEN; currently he is Coca-Cola GB president. Sleight is expected to leave the company.

As it happens, I don’t think either casualty will have much difficulty finding another job. Sleight has been credited with the UK launch of Coke Zero, the company’s most successful piece of carbonates new product development in over two decades; and has also superintended the fortunes of Glaceau Vitamin Water (which, for all my reservations about its positioning, has done quite nicely thank you).

As for Rumbol, he had already made a name for himself as the Stella client, at a time when that brand still produced great advertising. What he has since done at Cadbury will, however, have immeasurably increased his credit. He helped to launch the confectionery giant’s first foray into chewing gum (ironically, one of the reasons that margin-hungry Kraft began showing an interest). And he has been the impresario behind some of the most noted advertising in recent times, to wit Fallon’s “Gorilla” and “Eyebrows”. Move over Simon Thompson (who presided over a run of great advertising at Honda, a few years ago).

I’m less sanguine about the prospects of home-loving UK marketers in general, though – especially if working in large corporations. The tide is against you, unless you’re prepared to wield your passport more freely.

PS. Rumbol may have opted out of a new life at Kraft Cadbuy, but Ignasi Ricou, president of Cadbury Europe, is to stay on. He will be president of sales, Kraft Europe, with special responsibility for gum and candy.


%d bloggers like this: