SEARCHING FOR RIGHT ADVERTISING AGENCY

PRESENTED BY
AJAY PRATAP VERMA ajaypratap07@gmail.com DEBASISH GHOSH KULDEEP TIWARI 18003 18014 18023

ABOUT THE COMPANY 
The company, originally called Gateway 2000, was founded in 1985 in an Iowa farmhouse by Ted Waitt.  It was one of the first widely successful direct sales PC companies.  Gateway¶s early value proposition was to offer products directly to the customer, build them to their specifications, provide them with the best value for the money, and offer unparalleled service and support.

CONTDªª 
Gateway uses all of its sales and distribution channels including its call centers, Gateway.com Web site, and its nationwide network of retail stores to sell its products to consumers, businesses, government, and educational institutions.  On September 4, 2007 Gateway announced that it had signed a definitive agreement to sell its professional business segment to MPC Corporation.

ACQUISITION 
On October 16, 2007 the acquisition by Acer became final and Gateway became a privately held company and a wholly-owned subsidiary of Acer.  On July 27, 2008, Gateway ended all direct sales from Gateway.com and phone orders, It is only available in major retailers and on other online sites.  On August 14, 2009, Gateway has relaunched their brand in Australia after a long absence from Australia's market.

COMPETITORS
Gateway competes mainly against       Dell Hewlett-Packard Apple Inc. Lenovo Sony Toshiba

ADVERTISING
Until 1993, Gateway 2000 relied solely on print advertising that was produced in house. However, as the company grew rapidly, it decided to add television ads to the media mix and to retain the services of an outside agency to work with its in-house advertising department. It started shipping its computer hardware in cow-spotted boxes and for its creative advertising in Computer Shopper and other magazines.

DIRECT MARKETING
Over the past 18 years Gateway has been a technology and direct-marketing pioneer. It was the first company in the industry to sell computers online, the first to bundle its own branded internet service with a PC, and among the first direct retailers to sell its own branded consumer electronic products.

INTERNET MARKETING

SEARCHING FOR RIGHT ADVERTISING AGENCY 
First outside agency was Carmichael Lynch, Minneapolis who was hired to handle its television advertising.  In March 1997, company selected DMB&B agency because they thought that a global agency that could help the company with its growing international business. The agency¶s creative approach was more toward traditional advertising that used actors and scripted TV spots.

CONTDªª 
Waitt became dissatisfied with DMB&B¶s traditional campaigns and on March 19, 1998 Gateway fired DMB&B.  Then waitt selected another agency, DiMassimo Brand Advertising, a small creative boutique. Corra and the new agency produced a number of unscripted TV commercials for Gateway that were used for several months.

THE MCCANN ERICKSON ERA 
Waitt decided to step back from the day-to-day operations of the company and then hired Jeff Weitzen as a new CEO and also hired number of high level executives.  The new CEO announced the hiring of McCannErickson Worldwide , one of the largest agencies in the world.  In April 1998, the company dropped 2000 from its name, shortening it to Gateway.

CONTDªª 
The company also introduced a new logo featuring a hand-drawn version of its signature cow-spot box and it started shipping its computer hardware in cowspotted boxes.  Over the next several years the agency developed so many campaigns for Gateway promotion.  In late January 2001, Jeff Weitzen resigned as CEO.  Waitt resumed control of the company, announced a net loss of $94.3 in the fourth quarter of 2000 and Gateway dismissed McCann-Erickson as its agency.

SILTANEN/KEEHN¶S BRIEF TENURE 
The company also began working with yet another agency, Siltanen / Keehn.  The new agency began focusing on brand building for Gateway.  Ads ranging from humorous spots featuring Ted Waitt with a talking cow, to stylish product-focused ads promoting a new line of lap top computers.

CONTD...... 
The company was struggling with weak earnings and sales and then from , customer tracking research showed some declines in perceptions of Gateway on key attributes such as technology leadership and reliability.  Again moved its advertising to the Arnell Group, New York in October 2002.

EVOLVING THE BRAND 
Arnell¶s branding work included the redesigning of the ³cow spot´ logo, Gateway Country stores and integrating a new creative tagline.  Gateway stores were becoming digital destinations offering consumers a one-stop shopping experience for computers as well as other electronic products.

CONTD...... 
Gateway began offering over 150 digital electronics products including a complete selection of digital cameras, digital video gear, MP3 players, printers, software as well as Gateway's own plasma TV with a 42-inch screen.  Gateway promised that everything would be better relative to its competitors, both direct and at retail better products, value, service, support and customer experience.

LEO BURNETT TAKES OVER 
Gateway announced that it changing agencies for the third time in 14 months and moving the creative portion of its account to Chicago-based Leo Burnett.  In September 2003, Gateway launched its first fully integrated business-to-business campaign since 2000 with print and TV ads based on the theme ³Humanology.´  Gateway is hoping that the new campaigns from Leo Burnett can reverse its declining sales in the stagnant personal computer industry.

CONCLUSION
In the process Gateway changed advertising agencies five times over the past six years and three times in a 14 month period from early 2002 to 2003. Personal computer, as well as other segments of the consumer electronics industry, Gateway have become extremely competitive and having a strong brand image.