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2 Case Studies of Agencies and Their Organizational Structure

2 Case Studies of Agencies and Their Organizational Structure

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Published by Sudeep Poudel

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Published by: Sudeep Poudel on Feb 07, 2012
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OGILVY & MATHER CASE STUDY 
Ogilvy & Mather Worldwide
Type
Subsidiary of WPP Group
Industry
 
Advertising, marketing, public relations
Founded
Manhattan (1948)
Headquarters
Manhattan, USA
Key people
Tham Khai Meng, Worldwide Creative Director,Chairman of WW Council
Subsidiaries
 
OgilvyOne WorldwideOgilvyInteractiveOgilvy PR WorldwideOgilvy HealthworldOgilvyAction Neo@Ogilvy
Website
 
www.ogilvy.com
Ogilvy & Mather
is an international advertising, marketing and public relations agency basedin Manhattan and owned by the WPP Group. The company operates 497 offices in 125 countries withapproximately 16,000 employees.
History
Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt, Ogilvy, Benson, & Mather" inManhattan. The company became a leading worldwide agency by the 1960s.Central to its growth was itsstrategy of building brands such as American Express, BP, Ford, Barbie, MaxwellHouse, IBM, Kodak, Nestlé, and Unilever brands Pond's and Dove.
[1]
 Ogilvy & Mather was built on Ogilvy's principles, in particular, that the function of advertising is to selland that successful advertising for any product is based on information about its consumer.His entry into the company of giants started with several iconic campaigns:
"The man in the Hathaway shirt" 
with his aristocratic eye patch;
"The man from Schweppes ishere" 
introduced Commander Whitehead, the elegant, bearded Brit, bringing Schweppes(and
"Schweppervesence" 
) to the U.S.;
"At 60 miles an hour the loudest noise in this new Rolls-Roycecomes from the electric clock" 
; and
"Pablo Casals is coming home ± to Puerto Rico" 
, a campaign thatOgilvy said helped change the image of a country and was his proudest achievement.One of his greatest successes was
"Only Dove is one-quarter moisturizing cream" 
. This campaign helpedDove become the top selling soap in the U.S.In 1989 The Ogilvy Group was purchased by WPP Group.
Engagement Model Factors For Ogilvy & Mather
y
 
Organizational Culture
: With offices in over 48 countries, Ogilvy and Mather operates one of 
 
the largest and most technologically advanced marketing communications networks in the world.
y
 
N
ature of Work:
Rapid SAP implementation and long-term support
y
 
Tactical / Strategic Requirements
- Market Pressures / Obligations: There was a need for fast implementation with stable supportand ongoing development.- Status of Various Projects: At the time of implementation, no other projects could be put intothe pipeline until this project was completed.- Resource Availability: Limited in-house resources were available, so the client hired GrayCellto perform the implementation and support.- Available Management Bandwidth: For implementation, client management was available tooversee the project. However, there was not enough client-side management available for supportdue to the client's ongoing projects and initiatives, so GrayCell is handling all support andoperation functions.
y
 
P
rocess Maturity
: This is a sophisticated client who was already familiar with the concept of offshore outsourcing. In this case, the client's willingness to explore their options enabled them torealize a significant cost savings on their SAP support functions.
Engagement Model Dimensions For Ogilvy & Mather
1.
 
Management Involvement
- We implemented a "White Box" model for SAP implementation,whereby the client was responsible for management functions and GrayCell provided qualifiedfunctional and technical resources. For ongoing support we adopted a "Black Box" approach,whereby GrayCell is 100% responsible for managing offshore support functions.
Communications Management Structure -
We implemented a basically "one-to-one"communication structure for support functions and a "many-to-many" communications structurefor implementation, using a system of conference calls, Yahoo instant messenger, e-mails, andvoice-2.
 
Onsite / Offsite / Offshore Mix
-- Due to the client's large size and familiarity with offshoreoutsourcing, we were able to provide an efficient mix of on-site, off-site, remote and offshoreservices.3.
 
Engagement Duration
- We are currently using a Long Duration Capacity Model for SAPsupport and application maintenance, which allows us to provide the client with greater cost-savings and efficiencies. However, for the initial SAP implementation we utilized a Shorter Duration Project Model in order to achieve well-defined functional objectives as quickly as possible.4.
 
Resource Skills
- For the SAP implementation, we used highly skilled and experienced projectmanagers, programmers, architects and senior consultants on-site who are expert at SAP, Oracle,and Java/J2EE. For the longer-term support functions, we were able to lower costs by usingconsultants at a less senior skill level who a well versed in the necessary ABAP and Basisapplications.5.
 
Team Size
-We provided a large-sized onsite team for implementation and continue to providethem with a medium-sized offshore team for support.
Accomplishments Using the Engagement ModelWith the help of GrayCell's functional and technical skills, Ogilvy accomplished the following:
y
 
Fast, efficient, on-time and under-budget implementation of an SAP system that consisted of Finance and Control, Material Management, Sales and Distribution, and Project Management
 
modules. These modules streamlined their worldwide operations, providing increased productivity and cost-control.
y
 
Cost-effective, stable and reliable offshore 24/7/365 days a year technical support andmaintenance with no need for client management.
y
 
Seamless client copy, upgrades and maintenance support of their SAP system.
"
GrayCell is our first-choice vendor for IT consulting and I can recommend GrayCell withoutreservation. We have found them to be a terrific choice for projects of all sizes and durations,ranging from 3-days to 3 years.
"
 
 Management 
 
The chairman is Rochelle Lazarus, who has held the position since 1996. She also was CEO until the endof 2008, when she was succeeded by Miles Young. Ogilvy & Mather Pvt., Ltd. operates as an advertisingagency in India. The company provides various marketing services through Web sites, Wed banners,email marketing, public relationships, radio, direct marketing, promotion, telemarketing, out door, packaging, rural communication, retail visibility and communication, television, and print ads sources. Itserves various sectors, including financial, food and beverage, house hold products and durables, lifestyle,media and publication, social cause related marketing, telecommunication, toiletries, and travel andtransportation. The company was founded in 1928 and is based in Mumbai, India. Ogilvy & Mather Pvt.,Ltd. is a subsidiary of Ogilvy & Mather Worldwide, Inc.
 
Cli 
ents
 
Ogilvy & Mather board has produced work for a wide range of leading brands, including:
 
y
 
Adidas (since 2007)
y
 
American Express (since 1962)
y
 
Amway (since 2009)
y
 
British Gas (since 2008)
y
 
BP (since 1999)
y
 
Citizens Financial Group (since2010)
y
 
Cisco (since 2002)
y
 
Coca-Cola Company (since2001)
y
 
DHL (since 2002)
y
 
DuPont (since 2003)
y
 
Gap (since 2011)
y
 
Gillette (since 1962)
y
 
GlaxoSmithKline (since 1983)
y
 
IBM (since 1994)
y
 
Kodak (since 1995)
y
 
Kraft (since 1958)
y
 
Lenovo (since 2005)
y
 
Mattel (since 1959)
y
 
Motorola (since 2000)
y
 
 Nestle (since 1956)
y
 
 NexCen Brands (since2007)
y
 
SAP (since 1999)
y
 
Siemens (since 2008)
y
 
Tobacco Institute (ended1998)
y
 
Unilever (ParentCompany)(since 1954)
y
 
Vodafone (2009)

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