Richard Pinder launches global network with Maserati as a client

March 26, 2013

Richard PinderAfter years of being a jet-setting senior suit in someone else’s service, Richard Pinder has decided to go global on his own account with the ambitious launch of international network The House Worldwide.

Pinder, it will be recalled, was head of Publicis Worldwide for five years until group succession politics (the imposition of Jean-Yves Naouri as executive chairman) made further tenure of his position unrealistic.

That was two years ago. Since then, Pinder has been pondering how to cash in on his experience with global clients (he’s worked for over 25 years in Asia, Europe and the USA; for Leo Burnett, Ogilvy & Mather and Grey, as well as Publicis) by building a new-model worldwide agency network.

No mean cliché, the cynic will object. We’ve heard the rhetoric before. What’s the reality?

It’s true that the agency world has long been struggling with a “post-analogue” structural solution to the increasingly financially unviable traditional creative agency network, with its army of regional bureaucracies. Some have proffered a solution in the form of the fleeter-footed international micro-network (step forward BBH, Wieden & Kennedy and – in its heyday – StrawberryFrog.

Pinder, however, has gone a step further in presenting a top-down managerial solution – or perhaps that should be management consultancy solution – in place of the piecemeal creative one. His starting point is that the traditional global advertising business – unlike professional counterparts such as lawyers and accountants – loses most of its senior talent to the management of regional geographic fiefdoms, which are there primarily because of historical legacy. What this talent should be doing is servicing the client’s agenda rather than their own corporate one. The exception, where the client really can insist on top-level personal service, is a vanishingly small number of mega-clients, such as Ford and Procter & Gamble, which have specially structured teams to pander to their requirements.

Pinder’s idea is to provide this level of service for global, or at least international, clients further down the budgetary league table. Each client should be serviced by no less than three senior people at any one time. To do this, he has joined forces with a core team of like-minded senior executives: initially, Peter Rawlings, former chief operating officer DDB Asia, Chris Chard, former chief strategy officer of Lowe Worldwide in New York and Ben Stobart, former senior vice-president (chief suit) of Burnett Chicago. These will deal directly with top clients on a day-to-day basis; the specialist skills base, on the other hand, is to be provided by a network of over a dozen associated network companies, of which the best known is Naked Communications (see AdWeek for a full list).

Note the absence of an overall chief creative officer. This is deliberate: Pinder does not believe a single individual can adequately address the creative needs of all client types.

Why is Pinder convinced this model can operate from a single fixed geographical location (well, actually two in THW’s case – London and Singapore)?  Because of consolidation on the brand management side. More and more marketing power is being concentrated into the hands of Chief marketing officers and indeed chief executives; less and less being delegated to regional and country power bases.

But, the acid test is: has Pinder got any clients? Yes he has. He has been collaborating with two over the past year in honing the organisational structure of THW, during what he calls “beta mode” (how digitally au courant).

And they are? Maserati and an upmarket specialist haircare brand, GHD (stands for “Good Hair Day”). Both, he tells me, are poised at an interesting fulcrum of development, from the brand and new product point of view.

Maserati, an ultra luxury sports car marque lodged in the Chrysler/Fiat stable, has been given a €1.6bn injection to broaden its model range and take on Porsche.

GHD – which produces premium-priced hair stylers – is also cash-rich after being bought for £300m by Lion Capital. Lion is investing in npd, with a view to bringing GHD out of the salon and onto the international stage. Inevitably, that is going to involve careful brand positioning as GHD moves into a broader market segment.

However, Pinder is coy on the subject of who, apart from Maserati and GHD, is bankrolling all of this. It seems likely that both principal founders (Pinder and Rawlings) have skin in the game. But a project of this scope is financially beyond most individual investors, even if they are relatively wealthy admen. Private equity seems to the answer. Among the list of network associates is, rather intriguingly, a UK-based hedge fund called Toscafund, whose chairman is former RBS bigwig Sir George Mathewson. Pinder claims Toscafund is very handy on the “analytics” side. No doubt. But my guess is it’s providing a lot more resource than that.


The man who didn’t cause the world’s most infamous marketing disaster dies

March 8, 2013

edselsThe death late last month of Roy Brown Jr, aged 96, is a timely reminder of that old adage: success has many authors; failure but one scapegoat. The reality, as we shall see, is not uncommonly the inverse.

Brown was Ford’s top designer during the Fifties and it was his misfortune to be saddled with historical responsibility for one of the greatest marketing disasters of all time. The Ford Edsel was conceived in 1955, born in the 1958 model year and unceremoniously euthanised in late November 1959. In that time it had cost Ford a record $350m, the equivalent in today’s money of about $2.8tr.

Critics rounded on the controversial “horse collar” or “toilet-seat” chrome grille, in which some amateur psychologists even descried a vulva, as the car’s killer feature. Admittedly, over 50 years later, it’s hard to regard that grille as an aesthetic triumph – but, with hindsight, it’s surely no more than a fairly conventional attribute of the overblown fin-styled float-boats of the time. In any case, Brown was not ultimately responsible for the grille. His concept was a much more restrained vertical opening, perhaps à la Alfa; it was overruled by Ford engineers, who deemed it too narrow for radiator-cooling efficiency.

The wider truth about the Edsel – and the calamity that engulfed it – is that it was not just an automobile style, not just a car, but a range of cars, a new manufacturing division and, most disastrous misconception of all, a market segment that never existed.

In reviewing the consumer boom in 1950s America, Ford market “research” had concluded the car manufacturer was in need of more careful market segmentation. Its top end range – Lincoln and Mercury – was found to be competing – horror of horrors – with more downmarket marques such as Oldsmobile and Buick at General Motors. Solution: push Lincoln further upscale with the new Continental marque, which would compete more credibly with Cadillac. And introduce a new mid-market marque, the Edsel, which would slot in just below Mercury and just above Ford.

Simple, eh? Except Ford senior management then went on to commit a series of textbook marketing errors. The research was fatally flawed: by 1957 middle Americans were tightening their belts as a mini-recession beckoned. If anything, they were looking downmarket, at more value for money. Speaking of which, Ford then committed error number two, it got greedy with its pricing. The new segment competed nearly head on with Mercury, undermining the latter’s perceived value. At the same time, the bottom end of the Edsel range overlapped Ford’s better-equipped and better-value-for-money Fairlane 500.

Error number three was the name. No one had a clue what it should be, so the task was delegated to Edsel’s agency, Foote Cone & Belding – which duly obliged with no less than 6,000 paralysing suggestions, none of which quite did the business. True, four of them – Citation, Corsair, Pacer and Ranger – ended up as model names. But that still left the awkward issue of the umbrella brand unresolved. What then happened almost beggars belief. While Ford chairman Henry Ford II – a known sceptic of the whole brand segmentation idea – was abroad, the board took it upon themselves to name the marque after his father, the oddly-named Edsel – in honour of the Ford family. An unintentional hostage to fortune if ever there was one.

All things considered, the Edsel actually had a reasonable launch. It undershot expectations, but still managed to be one of the biggest model launches to date. From there on in, however, it was rapidly downhill. As the recession bit and sales stalled, the vultures began to circle. Some actually thought the styling and layout of the vehicle (which shared a platform with other Ford marques) was too conventional (!). Others criticised the range for coming up with innovations, such as the Teletouch automatic transmission selector, which were too complex for the consumer of the time. And certainly there were reliability and after-market problems.

robert_mcnamaraGetting the picture? Biffed on all sides, sales tanking; enter Robert McNamara – Hank the Deuce’s axeman. Better known to history as the man who, as Secretary of Defense, thought up the “body-count” as a means of conjuring defeat in Vietnam into victory, in the late Fifties McNamara (left) was a whizz kid consultant at Ford, who shared his chairman’s deeply-held conviction (or was that prejudice?) that Ford was over segmented, and would do well to get back to core brand values. It was death for the new but massively underperforming marque by several strategic cuts – cuts in the marketing and advertising budget; cuts in the production budget and cuts in the management overheads. The separate Edsel division was soon dissolved, but the Edsel itself limped on for a while as rebadged, retrimmed and overpriced Ford models in all but name.

And Roy Brown, the man who got blamed for it in the popular imagination? He lived to fight another day, as chief designer of Ford’s first world-car, the Cortina. Not only that, he kept faith with the Edsel, an immaculate example of which he continued to drive until his dying days.

For Brown’s estate, at any rate, the Edsel will have proved a good investment. Showroom-condition models now achieve prices in excess of $100,000.


Research underwrites Facebook’s stratospheric valuation

May 3, 2012

Handily, just weeks before an IPO tipped to give Facebook a value twice that of Ford, some research has come to light underwriting investors’ colossal projection of faith.

Here, to give the flavour, is Mediapost’s take on it:

Social media has surpassed search, and is poised to overtake online display advertising as the No. 1 source of digital media planning and buying, according to the latest edition of a quarterly survey of US advertising agencies. The survey, conducted by Strata, the agency media software and processing firm owned by Comcast, found that 69% of agency executives now consider social the “focus” of their digital ad spending — up 32% over the past year, and now a close second behind display (71%) as the dominant digital media-buying platform in the minds of agency executives.

“The survey demonstrates that there has been a shift from search -– which has dominated the digital part of the business for the last five to 10 years -– to social,” says Strata CEO and president John Shelton.

Shelton said that view was affirmed to him this week while he was attending a technology conference of executives from small and mid-size agencies in New York City this week in which social was the main topic of discussion and nary a word was mentioned about either display or search.

“I did not hear the word ‘search’ once,” he said, “ and maybe two out of three of the vendors [presentations] and three out of four of the [agency executives’] questions were about social. Social media is absolutely their main focus right now.”

Enough said. At least, for now.


Clint Eastwood – the new face of Chrysler advertising is the voice of the US nation

February 4, 2012

Clint Eastwood is replacing Eminem as frontman for Chrysler’s advertising during the Super Bowl this weekend. The ad is to last 2 minutes – meaning an upfront cost of about $14m. And that’s before production and Clint’s fee are factored in.

Still, it’s probably money well spent, since the ad will upstage everyone else’s effort this year. As it happens, Chrysler has got something to brag about. It’s currently doing better than any other US auto manufacturer, posting a 44% increase in year-on-year sales last month. That compares with Ford’s slightly disappointing 7% gain and General Motors’ 6% drop.

The Eminem ad was widely praised at the time and later lionised at Cannes. What Clint will do to surpass last year’s effort is anyone’s guess. But then, that’s the thing about him. He doesn’t have to do very much. Just open his mouth slightly and everyone’s agog. He’s practically the Father of his Country, such is his prestige. It’s certainly greater than that of any living president.

Chrysler is coy about his role, admitting only that he will deliver a “pep talk” to the nation. Should be interesting. One thing we won’t be seeing, I suspect, is a reprise of his last film role, in Gran Torino. Despite the tempting Motown parallel, the movie is about a retired Ford worker who drives about in a classic Ford car. I bet Ford is kicking itself.

UPDATE  6/1/12: And here it is:

PS. Eminem is being sued for $9m by a homeless man, Stephen Lee Pieck, who alleges the rapper stole the above-mentioned ‘Born from Fire’ ad idea from him.


Julie Roehm – marketing’s femme fatale

January 17, 2012

So Julie Roehm, femme fatale and arguably the only larger-than-life personality left in marketing, has managed to land herself a proper job again – as VP marketing at global software company SAP.

Unlike Jodie Fisher, the “marketing consultant” who brought down HP CEO Mark Hurd, Roehm really is a high-profile marketer. Glance at her CV (conveniently at hand on LinkedIn) and you will see that the past 5 years positively teems with starry advisory roles. Look a little further down the list, and you will note that she has held down some pretty senior marcoms appointments too, at Ford, Chrysler and Walmart. No trumped up “meeter-and-greeter”, no former reality-TV starlet, no bimbo she.

One thing – apart from the bottle-blonde big hair – that Fisher and Roehm do have in common, though: they are both tireless self-publicists.

To give the flavour, here’s an extract from Roehm’s personal website, written by an uncritical admirer at Hallmark:

You immediately know she is courageous, brave, in command.  When I tell her this, she smiles that trademark Roehm smile, mix of fine intuition, confidence, fierce focus and remarkable intelligence.  “Fearlessness is like a muscle.  The more you exercise it, the more natural it becomes to not let fears run you…that’s a favorite from Arianna Huffington.”

Clients seek her because she’s a warrior with a guru-like ability to feel and predict what makes consumers need, not want.  Believe, never doubt.  Buy, not browse.  Rev up, not idle.

Notoriously unafraid of controversy and a good, clean fight for the right, Julie is an intrepid, yet infinitely calculating innovator.

Strip away the cringeworthy, obsequious tone and you can see why Julie would be highly attractive to an otherwise successful client suffering from lack of image self-esteem; and, equally, why she might be a bit of a nightmare to work with.

The “notoriously unafraid of controversy” bit refers, of course, to the only reason Roehm is known this side of the Atlantic. Her last full-time marketing job was as senior VP-communications at Walmart, from which she was ignominiously fired after 9 months. Walmart’s idea of conduct unbecoming might seem absurdly straitlaced in this part of the world. Nevertheless, Roehm was well aware of the risk she was running when allowing herself to be so extravagantly lionised by the Draft FCB top team flaunting their (oh so temporary) $600m account win; and even more so when she engaged in an “inappropriate” email correspondence with her sidekick Sean Womack.

Roehm simply doesn’t know what reverse gear is. Absence of fear stood her in good stead during her marcoms years in the motor industry, where some saucy ad ideas – like men standing around in urinals talking about the length of their trucks – actually managed to shift metal. But it ended up making her more “famous” than the brand she represented. After the Walmart episode she was unemployable for 5 years, though she made a good fist of going freelance.

Will things work out better at software infrastructure company SAP AG? Leopards and spots come to mind. SAP ought to know what it is doing: Roehm has already worked there as a consultant. Then again, the same could probably have been said of Walmart, with which SAP shares some repressed, correct, organisational values. I also wonder whether La Roehm’s personality is too big for the fishbowl world of B2B – a source of potential frustration for both sides.

Of one thing we can be tolerably certain, though: existing ad agencies need to be on their creative mettle. Watch out Ogilvy, which has held the global $100m SAP account since 1999. A review is sure to be on the way.


Bad news for Rebekah Brooks, but good news for BSkyB’s Jeremy Darroch

July 6, 2011

Jeremy Darroch, chief executive of BSkyB, now looks in an even more powerful position to inherit the News International mantle of power (should he wish to) than when I flagged up his significance to the Murdoch empire in my last Marketing Week column.

Rebekah Brooks, NI’s current chief executive, is terminally damaged goods, in the wake of ‘Millygate’. Not to mention ‘Jessica-and-Hollygate’ and ‘7/7-gate’.

For the moment, of course, it’s Andy Coulson, ex-News of the World editor and David Cameron’s former director of communications, who has been thrown to the lions. Thanks to some NI emails which have mysteriously surfaced just in time, Coulson is now a proven liar. He procured, or authorised procurement of, paid information from the police while he was News of the World editor – something he has previously strenuously denied. And for good reason: it is quite illegal.

It’s an astute, if cynical, sacrifice, and proves the Murdochs are still thinking on their feet. Coulson’s disgrace tarnishes both Cameron (by association – after all, he picked Coulson, despite his dodgy reputation, and then backed him to the hilt in his hour of need) and Knacker of the Yard (assistant commissioner John Yates, once the officer in charge of investigating the phone-hacking scandal at the epicentre of the Murdoch crisis, who is now looking woefully ‘under-informed’ and incompetent, after previously vociferously denying the merest scintilla of police complicity in the matter).

Even so the Coulson gambit is, at best, a delaying tactic. It will make our leading politicians and policemen tread a little more carefully, but it will not prevent them from taking decisive action. Public opinion is now too inflamed for them to do anything else.

Inescapably, the smoking gun is pointing at Brooks, née Wade, and editor of News of the World when – it now emerges – NI’s private investigator of choice Glen Mulcaire was hacking into the phones of Milly Dowler’s distressed relatives. She says she knows nothing about it. Do we believe her, any more than we believed Coulson’s protestations of ignorance? I’ll leave that one hanging in the air.

Ordinarily, implicated NI and former NI executives have been able to take refuge in prevarication, in the sure and certain knowledge that rapidly abating public interest will soon allow them to emerge from their burrows relatively unscathed. This crisis is different.

It has an unprecedented commercial dimension to it. Top advertisers, led by Ford, are boycotting News of the World, and that really will hit the Murdochs where it hurts. Ford is the single biggest advertiser, contributing about £4.5m annually to NoW’s £40m display advertising revenue. Halifax (owned by Lloyds Banking Group) has now joined Ford. Other major advertisers believed to be considering their options are T-Mobile/Orange, Vodafone and nPower. The danger, from the Murdochs’ point of view, is that this commercial contagion spreads to other NI newspapers, such as the Sun – which Brooks also edited. It could easily do so, given a swelling social media campaign goading consumers to boycott advertisers who refuse to align themselves behind Ford. (There’s a useful live update on the brands boycott at Marketing Week.)

All of which may well rapidly result in Brooks becoming surplus to NI requirements.

OK, you say, but what has this got to do with Jeremy Darroch? I’m coming to that. Whatever the backwash from the phone-hacking scandal, it will not prevent culture secretary Jeremy Hunt from giving his blessing to Murdoch-vehicle NewsCorp’s acquisition of the 61% of BSkyB it does not already own. Legally, a challenge to that assent is now well-nigh impossible. Indeed, Hunt and the Government would probably be on the receiving end of a writ it they were obstructive.

Let’s assume for a moment that the deal is done, that the Murdochs have pacified BSkyB shareholders with an eye-watering amount of money and are now the proud possessors of the rest of the organisation. What are the repercussions for NewsCorp and in particular its UK-centric arm, NI, in the wake of a full takeover?

BSkyB is one of the UK’s most powerful companies with, just to give the flavour, a marketing communications budget of £1.2bn a year. It is phenomenally cash rich. One estimate reckons that, once acquired, it would contribute 30% of NewsCorp’s cashflow. Like the Murdochs’ newspapers, it is UK-centric. Unlike the newspapers, it is highly profitable. Unlike the newspapers again, it is still a dynamic growth business, which has made good use of product innovation.

In short, it would be the jewel in NI’s crown. Who better to manage that jewel in the new, enlarged organisation – a man of untarnished reputation who intimately understands subscription TV; or Brooks, with her yesterday’s tabloids background?

Of course, I have no idea whether Darroch would actually be interested in such a proposition. He may well take his money and run. But it’s worth thinking about, isn’t it?

UPDATE 17.30 – 7/7/11: So, The News of the World is no more. The Sunday edition, shorn of advertising, will be the last in the newspaper’s 168-year history. Nothing could more graphically illustrate the gravity of the crisis engulfing NewsCorp than that its chairman and chief executive Rupert Murdoch should take the drastic step of closing his most profitable newspaper and the one – to boot – he started out with back in 1969. The suspicion lingers that a skeleton NoW staff will be retained to flesh out a 7-day version of The Sun. “The Sun on Sunday” has long been rumoured as a cost-cutting project. How typical of Murdoch that he should turn a disaster into a publishing opportunity.

UPDATE 7/7/11: Determination not to be the last advertiser at the News of the World has now reached frenzied proportions, as Vauxhall, Virgin Holidays, O2 (£1m), Boots (£800,000) and  Sainsbury’s stampede to the exit with Ford, nPower and Lloyds Banking Group. Morrisons next, I suspect. Will anyone be buying the paper anyway? Newsagents expect a boycott on Sunday.


Regulator cracks down on car makers living in Cloud Cuckoo land

June 11, 2011

The time when the car was simply an internal combustion engine on four rubber tyres that got you from A to B has long since passed. Now it’s a mobile computer, equipped with cloud technology that maps your route automatically, gives you business listings, traffic information, sports news, stock market prices, local petrol station locations, cinema listings, reads out your email and text messages, and much more besides.

No self-respecting car marque is without its patent system. Ford has Sync, General Motors has OnStar. And even Hyundai is about to bring out its own market-challenging product, Blue Link – whose maker ATX also supplies BMW and Toyota.

Hyundai Velostar: One of the first models to get the Blue Link cloud technology launched next year

It’s easy to see why they are so popular. Customers love the gadgets, the systems give the car brand an extra cutting edge, and there’s a tasty aftermarket as well. Some car-makers charge a hefty annual rental for the services. OnStar, for example, costs up to $300. And, while we’re there, let’s not forget the commercial value of local search and location-finding services. Groupons at your local service station anyone?

Unfortunately, automobile telematics – as they are known in the business – are also killers. The top US safety regulator, the National Highway Traffic Safety Administration, reckons that every year thousands of motorists and their passengers end up in the morgue because of needless driver distraction. And what’s more it intends to douse the white heat of technological advancement with some very cold water.

Like Daniel striding among the lions, the NHTSA’s top man David Strickland chose the Telematics Detroit 2011 conference to put this unholy alliance of car and software manufacturers on notice:

“A car is not a mobile device… I’m not in the business of helping people Tweet better… We will not take a backseat while new telematics and infotainment systems are introduced. There is too much distraction of drivers,” he told a dismayed audience.

Wherever the regulator in the top automotive market goes, you can be sure the rest of the world will soon follow.


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