WPP Group plc

Report and Accounts

For the year ended 31st December 1987

/
 As O 'Reill y (To ny ORei ll y.
Thoughts and Trends Presid ent and Chief Exec ut ive
O ffi cer, Hj. Hein z Co mpa ny)
explains ··tiJis (spending i! cavdv
on lllarketing) is a vi rtu ous cvclc
of success wl!erc g,·ecllcr
nwrkeung cxpendiwres res ulc ill
additional growth Wld{ucurc
ma rgin expa nsion, which ill turn
pcnnit increased nwrhctillg
expenditures."
"There$ a new position that marketers are just now realising needs cO RTU'i lc \ 1,\ ( u\/. IN I . 2~ th .-\I'R II . l cJHH

to befilled, and filling it will be one of their most important

challenges. The position is ... 'a marketing communications
consultan( Thats someone who can decide how the total
communications pie - advertising, sales promotion, public
relations, direct marketing and the rest- should be divided; who
can ensure a consistent message across these assorted media and
who can manage the entire marketing communications US Advertising and Promotional expenditure
programme." % of
tota l
ALVIN ACHENBAUM. CH AIRMAN . CAN TER ACHENBAUM. ASSOCIATE S INC.
ADVERTISING WEEK. IIth APRIL. 1988 45

40

35
~cdtaadvcrt tStll)(

---
30

25

r\6
79 80 HI li2 H"l

Source. Don ne/Icy Ma rl~t:I Jn.~

Major Advertising Markets Media Inflation 1978-88 (est)

Cost pe r thoua nd of tel ev iSion CoSt of lt vtng CRPI)
"Histo ry has always shown that media inflation is
Index 1978- lOO
higher than national inflation, so ow· spending will
be pushed up so high that it will affec t consumer
-lOO
prices. We have been loohing long- terrn at
changing our ways of traditional marheting,
100
traditional advertising and buy ing networh
television and so on.
200
We are evaluating now, shorteHem1, how we ca n
cut down. We are loohing at the target marhets.
100
lJ'> UK japan \Vest Germany France
Other advertisers are doing the same thing; you see
Sourcr !Xparlmtnl oj Employm.cnl, them move into sponsorship and progra mming, all
J\\'tllta ThompsonCompany \Vor/dwuU McdUJ Dtpanmt:nt
related to trying tofind narrowa target groups."
M ICHEI. REIN ARZ . DIRI::C TO R 0 1· V I<;LJ;\ 1 < OMivl lJN I< 1\TI<l N'
N ESTLt SA. 1\ DVE RT I<;INC. N .F . 11th APR il IYRH

2 Wl'P G ro ur plc
"Wiight (Roben WJigiH, President ofNBC)forecasts heavy weather
because he thinks the audicnccfor nctwod1TV, already distracted
US TV Network Share of Audience 1981 -87
by the VCR s, ca ble services a nd independent stations, will continue
to sl11·inh Sltbstantiallf 52

FORTL'NE ~1.-\G.-\Z I NE. H1h ~ l ARC H . I YHR

')L)

-+H

4b
"The (UK) commercial
television indttstJ y has
H
become extraordinarily
inefficient. There is no -+2
doubt whatsoevn it
constitutes an 40
81 82 83 85 so
wtsatisfa ctm y ttse of the
monopoly resources
granted to it."
CHARLES JOt-: SCHER. \'ICE
PRESIDENT. BOOZ ALLE!' &
HA~\ 1\ .TON
FINANCIAL Tl ~ \ES.
\9ih APRIL. 19H8

"There is a 1·calisa tion by bot h the clients and the agencies that the era of doub le-digit inflation
which pmtec ted cveJ) 'Onc is goneforcvo; and age11cies are now having to learn to live lean and
mean, as clients have leamed to do ova the las tfew years. So what you ·re see ing now ts a
JTStructuring of agency OJ'ga nisation to match the client."
~ I AR\ ' I N SO LO~ ION . \ ' P-~IA RK ETI NG SER\'ICES. \\ :~ R NE R ·L AMBERT & CO
AD\'ERTISINL; AG E. t>1h .WR IL. 1987

Top Ten Advertising Agencies Worldw ide Market Share 1977-37

)6

"The ugcnn· hustness 1s Ll lnts111ess

lil1c ot ha lntsu1esscs lt has ics
46
own cconmn1c pressures ami
·H considcmtlons. unci what 1.1
hmdalllcncallv chiving it IS the
-1 2 dt:sirf 1.0 llCC{ Il ire CCOJlOill lt'S rl/
77 MI Hn
sccclc.
PF I FR \I ll t HI· \ I \· \ TE R\ .·\1 ·\IT.·\ IR'
l"'IRH. n. 1R l1l l:\\!F"" Pit
\\)\ 'F\Ht ,I NL , \ t ,J- \\ill \PR\\ '' ~~

\\ 'P i> (~ro up p lc

 Corporate Strategy

Strategic Service Vision
To become the major multi-national marketing services
company to service the increasingly complex and
international needs of our clients - the major national and
multi-national companies.
By providing a comprehensive and, where necessary,
integrated range of media and non-media marketing services
of the highest quality to meet clients' strategic and tactical
marketing needs.
To enhance thi s growth by acquiring compa nies tha t fit our
strategic service vision and that ca n be acquired o n fin ancial
terms that significamly e nh a n ce ea rnings p e r s hare.
To maximise the cash fl ow o f th e Compa n y a nd to limit
capital expenditure to th at leve l req uired w maintain its long-
term competitive position.
To pay out, in the long term, on e-t hird o f a fter-tax eamings in
dividends to shareholders.

Through a dominant presence, not only in the major

consumer markets of the world but also in the smaller but
more rapidly developing worldwide markets.

Through this focuse d operatmg

· strategy, and through a lean
organisation and limited hierarchy, to provide stimulating
·· m
career opponumnes · a!I th ese areas for young, energetic and
. Is w ho are pnmanly
talented profe sstona . . concerned Wlth
. the David Mais ter of Maister Associates a nd a former
qualitative aspe cts of th etr
. work . At the same nme,
. Associate Pro;essor at the Harvard Busin ess Sc hool,
to seek to
provide incentive and financial reward and minimise the who specialises in the m a nage m e nt of profess io n al
separation betw h. service firms divides the most s u ccessful
een owners tp and control, between manager
and entrepreneur, and between 'hunter' and 'fanner: by organisations amongst professional service businesses
encouraging as m any as posst"ble to own a stgmflcant
. .. share of into two distinct and contrasting types o f firm s -
the company, elt· her d.lfectly or indirectly. "hunters" and "farmers~ The former a re d esign ed LO

capture- and capitalise on the benefit of individual (or

Progress so far
small group) emrepreneurialism; the la tte r to obtain
1986,
. the first full year fo!I OWlng
. our change in strategic
the advantages of collaboration, strategy a nd focus.
direction from m f .
. anu actunng to services, saw the company
bUild a dominant posmon ·· m . the Umted
. Kingdom in non- Here are the basic concepts o f eac h:

media advertising an d d eve1op a strong base m

. speoahst
. . Basic Concept Hunters Farmers

communications in the United States. Indi vidual (or Fmn w 1dc

Central Principl e
Small Group) Ct1JJ a DL1ra11<1n
Emrepre ne unalis m
The organic growth achieved during 1987, together with
Key Strengt hs Diversit y Foc us
major developments by acquisition concluded at the same Flexibilit y Stra teg y

time, will now enable us to achieve our strategic objective Internal Atmosphere Comp etiu ve C.o ll ahorauve

more rapidly and more effectively. Management Style Botwm -Lme ·va lues
Nu mbe rs Focus -M I S~ HHl

Financial Strategy Self-Image Stree t fight e rs Team Player<;

To increase earnings per share by at least 20% per annum Leader Bes t Hunt er H1gh Pm·,; t
through organic growth, including improvement in market Decision -Making Dece mralt sed ( l ) · l,_ lrdllltl! c d
(Auto no m o us) 11merdep,·ndcnl l
share and profit margins

4 WPP Group plc

 Group Services

Non-Media Advertising
Graphics & Design
Architectural services
Corporate and brand
The demand for outside services, of the kind traditionally provided by advertising agencies and identification
design consultants, continues to grow So, too, does the range of such services - at WPP we have • Exhibition and display
• Furniture, industrial
identified five distinct categories, which benefit from central Strategic Marketing direction.
and product design
• Interior design and
It is in the nature of specialised services companies to excel in one such category but seldom if
installation
ever in all. • Packaging
• Promotional and
Within the WPP Group there are now specialist companies providing all the marketing service informative material
skills required by national and multi-national clients. These companies are encouraged to retain • Space analysis and
planning
their own identities and sharpen their own professional skills. In many cases, their principals are Incentive & Motivation
their founders. Their businesses and their reputations have been built on their own talents, and
• Business entertainment
the names of their clients are testimony to the quality of their service. • Corporate seminars
• Destination management
• Incentive and conference
programmes and travel
Strategic Marketing Services • Travel-based and voucher
product promotions
• Communication tac tics
• Concept and brand auditing Sales Promotion
• Economics and econometric • Consultancy
applications • Coupon redemption
• Expert systems • On-pack offers
• Market forecasts • Point-of-sale
• Product development and • Premium schemes
brand positioning • Self- liquidanng promotions
• Total environment, social
and policy analysis
• Trade promotions
Audio Visual &
• Various monthly and Video Communications
quarterly publications • Demonstrations,
exhibitions and conferences
• Equipment installation,
servicing and hire
• Presentations, product
Media Advertising launches and trade shows
• Global, multi-national and • Production, editing
national packaged goods, and standard transfer
consumer goods, services. and • Training and recruitment
corporate advertising.

Public Relations
• Na tional and international
corporate communi cations
• Cri sis communications,
problem diagnosis and solution
• New product launches
• Public affai rs
Market Research
• Advertising development,
pre- testing and evaluat ion
• Consumer, media,
corporate communication,
and policy research
• Design and management
of basic, large-scale and
international market studie s.
• New product development
and product testing
Specialist Communications
• Annu al reports
• Copywriting, design, production and
distribution of promononal
material for specific target audienc es
• Corporate identity
• Crisis management and crisiS response
• D1rect mail adve rusing
• Eth mc group. business- Lo-busmess.
entertainmem . pharmaceuti cal. travel.
recruitment. retail and fl otation advem sing
• In vestor commun1 cauon s

\VPP Gro u p pk )
 Worldwide Activity

In Media Advertising WPP Group has 107 offices in 46

countries; in Public Relations, 61 offices in 22 countries; in
Market Research, 17 offices in 7 countries; in on-Media
Advertising, 40 offices in 7 countries; and, in Specialist
Communications, 63 offices in l3 countries.

\ 10 \ TREA L
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6 Wpp G r()up plc

 LONDON
AYLESBUR Y
KIDLI NGTON
LEICESTER
REA DING
SURBITON

BmiB.~Y

BA\GALORE
C.~LC L "TT.~

ARLI \GTO\ ~I.~ D RA S

A~ I STER DAM \! Ell" DELHI

BRLSSELS
LOS ANGELE S
NEWPO RT BEACH BRISTOL
SA\ FRANCISCO C HELTE\ HA~ I

SA\ j OSE ~ L~:--:CH E STE R

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 Client Services

In October 1986 WPP Group worked with 10 clients in two or

more services.

By July 1987 WPP Group worked with 60 clients in two or

more services, and 30 clients in three or more services.

Currently, WPP Group works with 214 clients in two or more

services, 85 in three or more services, and 14 in five services.
In addition, WPP Group works with 178 clients in the Fortune
500.

M EDi t\ ADVERTISING

PUBLI C RELAT IONS

MA RKET RE SEARCH

NON ·M f: Di t\ ADVERTISING

SPECIALI ST
CO M~ 1 UN I C AT I ONS

8 WPP Group plc

 -;
-o
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c.
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0
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""£.
r,

~
 Clients Worldwide

ln October 1986, WPP Group worked with 7 clients in 2

COUntries.
By July 1987, WPP Group worked with 114 clients in three or
more countries.
Currently, WPP Group works with 144 clients in three_ or
more countries, 20 clients in 10 or more countries, 12 in 20 or
more countries and 4 in 30 or more countries.

BEN ETTON

DE BEERS

EASTMA N KODAK

FORD

IBM

KELLOGG

KRAFT

MATIEL

McDON!\ ELL-DOUGLAS

RJR N,\BISCO

:-.J ESTLE

PEPW.O

I 0- ILEV ER

\\'A il. I: R-1 ,\~ IOI·lrJ

'>< <Jl I f',\l' l:R

10
Sales by Clients' Geographical Activity

129o GLOB,\L

.;oo,., ~ r\T I ONAL

 Results in Brief

-C:
-,'

1987 1986 %
£000 £000 increase
Turnover 284,082 23,685 1,099%
Operating Profit 21 ,454 1,422 1,409%
Profit before Taxation 14,117 1.757 703%
Profit after Taxation 7,307 1,144 539%
Profit attributable to the Shareholders 7,085 l,lOl 544%
Earnings per lOp Ordinary Share 32.1p l3.2p 143%
Earnings per ADS $1.08 $0.44 143%
Dividend per lOp Ordinary Share 6.4p 3.2p 100%
Dividend per ADS $0.22 $0.11 100%
Operating Margins * 7.5% 5.5% 36%
Pre-Tax Margins * 4.5% 2.5% 80%

*Pro-forma Basis

Earnings per Share Profit before Tax Turnover

(Ad)USftd jorcffcCI of n~hLS rssuc tn AuKU51 1987) (LOOO) (l000)

,_ :cc v;
~
"'::! ;:)

,_ ;:-
&
...;
"< "' ~ ;;; ~
,. -::.
,..,
v;
~.

::;!
~
0

"' -; ~

85 86 ~7 83
83 84 84 85 87 83 Ho t\7
86 H4 H5

Dividends per Share Revenue per Profit before Tax

Employee (LJ per Employee , L '

& ,,
"I
·~
.;'-
g ~
-I '"'
~I

rl

86 87 83 84
85 85 86 87'
84
83 Tlnc/ud(~ )W? (,,oup from /Jrh j11/;, /987

12 WPP Group plc

 Financial Highlights

Sales by Activity*
•prCl-Jomw Bas ts

Sales by Geography*
•Pro-Jomw Basts

20% UN ITED K I NGDO~ t

58% UNITED STATES AND CANADA

22% REST OF THE WORLD

Profit by Activity*
•Pro-forma Bas1s

Shareholders by Type

PENSION FUNDS. INSURANCE & INVESTMENT COMPAN IES 80%

INDIVIDUALS 6%
OTHERS 5%
EMPLOYEES 9%

Shareholders by Country

1987 Cashflow by Item

l ASH I L 1871 million

-- _.._. L l7l <.l million CASH Ol 'T

CASH FROM !'R E TAX PROFIT'> PI US DE PRE CIATION U09 rmllion A<QUISITION OF '>LI B'>IDIARII·<
'> HARF bSUb U05 2 millron L 'i 'i rnrllron TAX PA ll~

I.OAN I'Rl l t FFDS U ol 2 mrllron Lll l rn rllronDIVIDE ND' Pt\ lf'

t: 76 mrllion PU RCHA~F C>F FIXFI1AS\FT'

Increase in net cash £13.4 million

WPP Gm up plc \3
 Chairman's Statement
Results
I am happy to report that 1987 was the fifth successive year of
growth.
In 1987, sales rose from £23.7 ($39.8) million to £.284.1
($477.3) million. Profit before tax rose by more than eight
times to Ll4.l ($23.7) million, and earnings per share by 143%
from l3.2p to 32.lp (44.41t to 10791t per ADS) after adjusting
for the rights issues injuly 1987 and August1986. The
Directors are recommending a final dividend of 4.9p, making
a total for the year of 6.4p, double last year.
On a directly comparable basis, operating margins have
improved from 5.5% to 75%. This resulted from an
improvement in operating efficiency and, more significantl y,
from an improvement in the margins ofj Waiter Thom pson
Company and Hill and Knowlton since their acquisition in
July 1987, not only reflecting closer attention to costs but also
revenues in excess of expectations particularly in the last
quarter of 1987 In addition, several of our other companies
performed particularly well including Sidj akov Berman
Gomez and Partners, Walker Group/ CNI, Sampson/ Tyrrell,
Scott Stem Associates, Business Design Group and
Metro Video in non-media advertising and Pace
Communications in specialist communications.
On the same basis, pre-tax margins rose from 2.5% to 4.5%
refl ecting improved liquidity, and at the year end the Group
had net debt of Ll073 million ($201 6 million) Accordingly,
net debt was approximately L32 million ($60 million) less
than thm incurred in the acquisition of]WT Group, even after
subseque nt acquisition payments of £13.4 million ($25
million)
Following the acquisition ofjWT Group, your Board has
carefu lly reviewed the assets of the Group and is considering
disposal of certain asse ts which are either surplus to trading
requirements or where the opportuni ty cost of continued
ownership is excessive because of returns available elsewhere.
Sin ce the year end, several offers have been received for
Group freehold properties An offer of 25 billion Yen (£.l09
million , $205 million) has been received for the Group's Tokyo
property and furt her indications of interest have been
received. In addi tion , seve ral offers have been received fo r
14 WPP Group plc
other Gro up prope rt ies in Sydn ey. Au s trali a :md Ta mpa,
Florida tota lling U O milli o n (S 18.8 rnilli cm ) Yo ur Boa rd h as
d ecided to aeceptthese o ffe rs a n d has n1 m p let ed sales in
Sydn ey and Ta mpa , a nd is co n s ide ring \\ ·hat ac ti o n to tak e on
the o ther o ffe rs. O n a co n se rYa ti\·e b a s is a nd a ft e r full
provision fo r tax , these s a les co m b in e d \\·o uld realise $ 100
millio n in cash a nd res ult in a p p ro.-..:im a tc ly th e sa m e increas
in net asse ts.
These results reOec t o rga ni c grow th ra te s o f ove r 10 % in
m edi a ad ve rti sing, 15 -20% in publi c rela ti o n s and m a rke t
research, over 20% in n o n - m ed ia a d \·e ni s ing a nd s p e cialis t
communi ca tio ns, a nd 10 % in m a nufact uring, toge th e r with a
first time contributi o n fro m a se ri es o f acq ui s iti o n s in the las t
yea r w hic h h ave es ta bli s h ed th e Co m pa n y as th e vvo rld's
fourth ranked m arke ting se rv·ices co m pa n y Th e Company is
n ow the fourth la rgest ad ve rti s ing gro u p in th e wo rld, the
largest public relatio n s co m pa n y in th e wo rld , th e s ix th largest
marke t researc h compa n y in the wo rl d a n d p robabl y the
largest non -m edi a ad ve rtis ing a nd s p ec ia li s t co mmunication
company in the wo rld .
Strategy
These results are also a n in d ica ti o n o f th e p o te ntia l b en e fits
from ac hi evi ng the Gro up's st ra tegic o bJ ec ti ve o f b ecoming th
(a sm all cha nge fro m las t yea r) m aJOr mul ti- n a ti o n a l
marketing services compa n y b y ide ntify ing sec to rs th a t are
large, ra pidly g row ing, fragm e nted o ffe ring o p portunities fo r
growth th ro ugh acqui s iti o n , a n d o ve rl ook ed by compe ti tors.
In the 1970 's a nd 1980's ou r co m pe ti to rs, la rge ly th e m aJOr
multi -natio n al ad ve rti s ing age n c ie s. we re s low to respond tO
the increasing geogra phica l ex p a ns io n a n d fun ct io n a l
compl ex ity of o ur cl ients, th e maJor n a ti o n a l a nd multi-
nation al corpo ratio ns Too o ft e n th e ir res1x1 n se tl1 cli e nts'
probl em s was based o n th e ir ex p e rti se w hi c h was
concentrated in m edi a- pa rtic ul a rl y te levis iLm adve rtising.
Clients have becom e in creas mg ly sce pti ca l c,f th e p owe r of
television m edia, pa rt ic ul a rl y as it s effect I\ 'e cost h as rise n
sharpl y as audi e nces d ecl in e a n d m edi a mn a ti,)n <..) ur paces th
consu me r price in d ex it IS Increas ing!y 1 h e ro le l1f th t>
advert ising age ncy (a mi s nom e r a~ Ih C) il<' J,, n gcr
concen trate, or s hou ld co n ( e n t ra te . Pll a eh-en IS m g a n d
technicall y ac t as principal not age nt) to ac t as its clients'
busin ess partner and be able to advise them on marketing
st rategy and creati ve execution.
Television Advertising
Cost per thous:md Jd uhs for 30 seconds at peak r.:ues. 1986
L.: S
\ Ves t
Ge rrn.:1 ny
France
l< aly
L.:K
Five areas have already been identified that fit these criteria -
media advertising is worth ap proximately Ll06.5 billion($200
billi on) and is growing in excess of 10% per annum; public
relations is worth approximately £ 77 billion ($ 14.5 billion)
and is growing at 15% to 20% per annum; marke t research is
wo rth approximately L2.1 billion ($39 billion) and is growing
at 15% to 20% per annum; non -media adve rtising is worth
approximately Ll17l bill ion ($220 billion) - more than media
advertising- and is growing at 20% to 30% per annum; and
specialist communications is wo rth approximately £ 29.4
billion ($ 552 billion ) and is growing at 20% to 25% per
an num .
In all these marke ts the United States represents
approximately 50% of worldwide expenditure, with the
Uni ted Sta tes, japan, Un ited Kingdom, France and Germany
accounting for approximately 80% of worldwide expenditu re.
Put anm her way, the United States represents a ma rke t five to
eight times bigger than even other well -developed markets.
Howeve r, it is likely tha t in the future it is the markets outside
th e Unned States tha t will provide greater relati ve growth
opportunities. reOecting the deregulation of television media,
the internalisation of the Com mo n Market in 1992. the high
relati ve growth rates of the Iberian Peninsula, Southern
Mediterranean, Latin America and Asia Pacific.
New Business
In the glare of the publicity that surroun ded the acq uisition of
j 'vVT Group it was onl y natural that media atte ntion would
focus on the account losses of its biggest constituent pan, the
J Waiter Thom pson Com pany, vvhether these occurred as a
resul t of events before or after the acquisition.
J Waiter Thompson Company has an old-fas hioned, or what
might be called highl y professional, attitude to gain ing new
business, namely it publicises its clients' business no t its own.
In fac t, during 1987, the revenues of the j WT Group as a who
le increased to $700 million from $645 million in 1986. In
terms of billings, although the j Waiter Thom pson Company
lost a total of $450 million in 1987, the agency alone gained
more than $330 million. The net loss of $120 million in billings
represents only 2% of the Group's pro-forma revenues of $900
million, assuming 15% of agency commission.
Amongst new assignments won las t year in each division
were:
Media Advertising
Benetton, Blitish Telecom, Chase Ma nhattan Bank, Diners Club,
Ford, General Electric, IBM, )acobs St1clw rd, I<ellogg, Kodak, I<mji,
Matte/, Miller Brewing, Nabisco, National Wes tminster Ban I<,
Nes tle, Paramount, PepsiCo, Philips, Quaker Oats. R) Reynolds,
Tenneco, Unileve1; Wam er-Lambert.
Public Relations
Allegis, Allied Signal, Ba.xter Y,·avenol, Beecham, Blitish Airways.
Ciba Geigy, Co-operative Retail Societ)\ De Beers. Eli Lilley
Galla he1; General Foods, General Electlic. Goldman Sachs, Hat::.
Hitachi, Holiday Inns, ICI,)acobs Suchard,jolmson & j ohmon.
Kodal1, Monsanto, NEC, New York Stoch Ex:changc. PepsiCo.
Pm'in; Post Office, R) Reynolds, Rhone Poulcnc, Scher'ing- Plough.
Standard and Poors, Tate & Lyle. Yamalw.
Market Research
American Express, Beecham, De Beus. IBM,)acobs Suclwrd.
johnson & j ohnson, Kodal<, Miller Brcw111g, Nes tle. Peps1Co.
Rj Rcyno/ds, Wamer-Lamberc
\X 'PP Group plc I 'i
 Chairman's Statement
Continued
Non-Media Advertising
Air Canada, American Express, Amersham Intemational, Be atrice,
Boots, British Gas, BP, British Telecom, Campeau, Cunys, Daiwa,
Ford, Gillette, Kodah, KP, Legal & GeneraL Liberty MutuaL Lucky
Stores, Magnet & Southerns, Monsanto, Neiman Marcus, Oxford
Instruments Limited, Paine Webber, Post Office, Price Wa.t{'{\\0\\SC,
Quaker Oats, Reebo\1., R~·m:e Mackintosh}. Sainsbury, Shearson
lehman, Tenneco, The Limited, Trustee Savings Bank, Unilever,
Wait Disney, Yardley
Specialist Communications
Beatrice, Beecham, Ford, General Foods.]ohnson & johnson, Kraft,
Miller Brewing. Paramount, Paine Webber, Shearson Lehman,
Sterling Drug. Texaco, Unilever, Wamer-Lambert
Recent developments
Since the year end the Group has continued to implement its
strategic plan.
In January 1988, the Group's design and graphics capabilities
were strengthened by the addition of Stewart McColl
Associates, a leading integrated design company in the United
Kingdom. Stewan McColl Associates provides a full range of
design services particularly in the fields of architectural
services and retail design as well as in graphics and products
design. The acquisition created the largest graphics and
design group in the United Kingdom and will enable the
Group to expand the range of design services available to
clients. The Group is now the leading office design group in
the United Kingdom, and the combination of Walker Group/
OYA and Stewart McColl Associates created the largest retail
design group in the world. In order to ensure that the
respective skills of these complementary organisations are
utilised and co-ordinated effectively for the benefit of the
Group, and to capitalise on market opportunities, Stewart
McColl Associates has formed a joint marketing company
with Business Design Group and a joint venture with Walker
Group/ OYA to exploit opportunities on both sides of the
Atlantic
In February 1988, Anspach Grossman Portugal, a major
United States based corporate identity consulting business,
joined the Group. The Un ited States corporate identity market
16 WPP Group plc
is estimated to be won h around S250 millio n and is growing
in excess of 20% per annum. In I987, for exa mpl e, there were
1,753 name changes in the United Stat es compared to 1,382
in 1986, representing a 27% in crease. Over th e last five years
the number of eo t<l\t nam e c.'nan g,es p eT)Tat \\as g,ro,vn at
a compound annual rate of 17%. Th e acqu isitio n of Anspach
Grossman Portugal st rengt hens the s pecialist g raphics and
design capabilities of WPP and will enabl e th e Group to
expand the range of services available to clients.
In April 1988, in order to provide the Group's major national
and multi-national clients with a m o re strategic approach to
the analysis of their marketing problem s. the Henley Centre
for Forecasting was acquired.
It is our view that, in assessing their marketing serv ices
advisers, major national and multi-n a tio na l clients emphasise
two major attributes: firstly, strategic m a rke ting thinking,
planning and advice, and secondl y, c rea ti ve or tac tical
execution The WPP board considers that, as cu rrently
constituted, the Group exce ls in creati ve o r tactical execution
but needs to devote significa ntl y grea ter resources centrally to
developing strategic m arketing thinking for its clients.
Henley's unique range of consultancy services wi ll provide
the Group and its clients with a stra tegic reso urce which will
develop an understanding of how markets and con s umers
change, the economi c implicatio ns arisi ng from soc ial and
political factors, and ways in w hich it is possible to transform
the understanding of that change int o profitable marketing
decisions. Henley's expertise covers marketing, econ o mics
and econometric techniques, soc ia l resea rc h a nd com puter
operations, and is applied to strategic o pti o ns, policy analysis,
product development and brand posit io ning,
communications tactics and market fore cas ts. Henley's
subscription publication s includ e a ra nge of monthl y and
quarterly publications - Framework Fo rec asts for the UK
Economy. Planning Cons um er Markets. Lei s ure Futures. Cost
and Prices. Currency Profil es, Fra m ewL1rk Forecasts for the
EEC Econom ies and th e Direc 1ors Report '. yndicat ed se rvic
include Pla nn ing for Soual Change. Measu res of Hea lth and
Sigma Consu ltan cy se rvices mclu de ILll a l
environ m ent anal ysis, social analysis, econometric
applications, expert systems and concept and brand auditing.
Hen ley also provides seminars for its clients.
The Group has already developed, through the work of
Stephen King, Research and Development Director, atj Waiter
Tho mpson Company in the United Kingdom, significant
expertise and a framework for planning all marketing services
through a systematic and disciplined analysis of the objectives
of clients, th e setting of specific targets to achieve these
object ives and the evaluation of marketing services in
achievi ng these targets
The acquisitio n of Hen ley will enable the Group to develop
and extend these skills across the range of the marketing
services it offers. This will provide clients with a strategic
marketing planning service wh ich wi ll help to m axi mise the
effectiveness of their marketing st rategies.
Also, in April 1988, the Group ini tiated the development of its
sales promo tion activities in the United States through the
acquisition of the countrys fourth largest sales promotion
company, Ein son Freeman. The United States sales promotion
market has grown at an average rate in excess of 20% over the
last fi ve years and, in 1987, was worth over $ 100 billion.
Einson Freeman offers a broad range of marketing and sales
promotion services including strategic promotion planning,
marketing consulting, creative development. production and
impl em emation, and post-promotion analysis. Einson
Free man has been work ing closely with J Waiter Thompson
Company for a number of yea rs, so much so that one third of
its revenues originate from com mon cli ents.
In May 1988, WPP acquired E\VA, a leadi ng United Kingdom-
based, independe nt database management company This
acquisition brings to the Group specialist database
management marketing skills and tec hniques which \\·ill
de\·elop and enhan ce the range of di rect marketing sen·ices
availabl e to client s and w ill enable th em to maximise the
qualit y and producti\ ity of their marketing communications.
llirec t marketing senices are estima ted to be \\·onh ove r
$ 19 billion in the United States, with estimates for the United
Kingdom of betvveen £800 million to £l billion. Worldwide
market growth is between 15-20% per annum
The Company has also been expanding energeticall y through
organic growth. In the first four months of the year, £105
million ($200 million) of new assignments has been gain ed
from the foll owing new and existing clients:
Media Advertising
Allied Breweries, Bacard~ BAT, Bulmer, Carling O'Keef e,
Chesebrough-Ponds, Ford,j acobs Sue hard, Loehmann s, Nes tle,
Phi lips, P1imo, Reebok, R)R Nabisco, Toy City, Unigate, Unileve1;
Wardai1; Wamer-Lambert, Wellcome.
Public Relations
Barclaycard, Baxter Travenol, BowthOI'pe, The Crown Estate, Eli
Lillc)( Geest, Kellogg, Kodak, Koppers, Monsanto, New Yorl1Swc h
Exchange, PepsiCo, R)R Nabisco, Sc he~ing, Sterling Drug, Tamwc,
Tate & Lyle, Wellcome, Yamaha.
Market Research
3M, Abbey National, ArtllLlr Bell, Blitish Ainvays, BP, B1itish
Telecom, Central Office oflnfonnation, De Beers, Gillette,
Manpower Services Commission, Metropolitan Police, Phi lip Mon is,
Ymnaha.
Non-Media Advertising
Anhw· Bell, Austin Rove1: B1·itish Gas. Bri1ish Rail. Bw·ton Prop<Tt\
TnAst, CAP Financial, Citiban /1, Citmcn, EDS. Esso. Gatcwav
Supennad1ets, Habitat, Halifm Building Socictv. Hcincma nn. Hill
Samuel, Firestone. Kodah. l<PMG, Llovds Banh. !11/cnill Lvnch.
Metal Box, Nihlw Sewrit1es. Non vich Uni(ln. Pai nc Wc/Jhc1:
Pntdential Propertv Services,). Sa mshtu\( Texas Air 7i Wbal ll<Ti t'a.
L'nited Biscuits, Universal St11dios. Wavcrln· Ca mcron. Yard In :
Specialist Communications
Conncctic111 Mutual Life lnSIIIWi t'L' Co. E<l lllfL'cli. Ft n·d, C nulftil.
Lcl'i Stm11ss. Noxe /1. Painc Wehhcr.
\\ 'PP Gn >up p k 1-:
no" foll owed by four of the leading United States· media
in vestmem analysts, and it is the Group's objec tive to
significa ntl y deve lop Uni ted States institutional inte rest above
its currem IC\·el of approximately 10% of our shares in issue.
Opportunities for cross-refenal
Follo\\'ing the latest acqu isiti ons, on a histolic pro- forma
basis. 54% of Group sales and 55% of pre-tax profits are nm,·
represemed by medi:-t advertising, public relations represems
13% and ( I%), market research 7% and 10%, non-medi a
advertisi ng 1-+% and 18'1o. and specialist communications ll %
and 17%. Manufactu iing no"· accounts for less than I%
and I<'io.
United StaLes' operations <1CCC1Uill for 58% and 34%, United
I<ingdom 20% and 35°to, and Ihe Res t of the World 22%
and 31%.
The Group no\\· works " ·irh 21-+ m:ljor national or multi-
national cliems in t\\·o Llr more LJ{ it s services, as opposed to
60 at July 1987 and onl y 30 last year reflecting the progress
made and oppo nuniti e~ l<'r C t'l'S~-fc nili sarion be t\\'een
ac tivities naii onall y ancl tnt ern <ll to nall y. !t \\·orks wi th 85
cli en ts in three or motT ~en· i ce s (as ''PJX'sed to 30 ar july
1987), and wit h I++ clienis in three or more eou nuies (as
opp<1sed tu 11-+ at jul ) Jl)H/).j \\'alter Thompson Company
IS one Llf nnl y two agencies " ·ho wnrk \\·it h 20 or more clien ts
in 10 or tn me countries thmughLllll the world The Group
ser,·ices mu IT 1han 178 <'f 1he F<'rl une SOL} The Group
empl uys 10.82 1 pcuple 111 2HH nffi ccs in -tl) cuu mries.
There io, wi tlw ut douh t greater llLHent ial k1 r cwss-rcferrai L1f
hustne ~.., <llld th e au u,d pen et ratic1n aL·h ieved is mdicat ive of
the diffe re nce het\\·een ··medi <l .. adwn tsing ancJ·· non -med ia··
ac.ke n ising. t\ lcdia ac.ken Ising agenL·tes can be CL'mparecl to
hrando, 1hat CLlmpctc agai nst L'ne ,llllll her offeri ng the same
lull scr,·tce lL' th eir c lien~:->. " ·hcreas nl1n -mcdia acJ,·enising
agc nctco, tend L<' n 11n pkmc m L'lll' an,,rhcr because their tasks
dt'C mLliT mtegr<Ht\'l' thus ufk rtng L'Lhlpcrative L'PP<'rlu nir ies.
h 11· eX<lmpk. ILl ensure rhe ~ uc ccss Lll a u msumcr sales
pn 'mL'llLlll . an tnce ntt vc sc hem e ILlr salcsmen,,r deale rs 1<'
emuu rage rhe \\·Kiest f'L'S~ t hk pn,ducr distrib ution ma\· he
neLc..,o,,Jn r\ 1 the sa me um e a L'Ll-Llrdtnalc'd destgn IL1r
packaging or identity may be required together \\ith audio-
visual and video support to communicate the promotion·s
objectives intemally to employees and/ or ext ernall y to
customers. The inter-relationsh ip can be e,·en more
sophisticated as, for example, developmems in direct
marketing enable sales promotion to be com municated more
effectively to a better targeted audience.
The challenge facing the Group today is not onl y to harness
the non-media activities of the Group to meet cliem needs but
also to develop greater co-ordination bet\\·een media and
non-media acti vities. Some clients complain that professional
jealousies and even arrogance prevent advisers in different
disciplines from providing a truly co-ordinated programme
and desi re ro examine an integrated approach It " ·o uld be jusr
as bad a case of marketing myopia for non-m edi a C L'lllp~mi es
10 ignore media advert isi ng, as it " ·as for rhe media agencies to
ignore non-media ad,·enising in the 1970·s. :\ sa re:;ul t. a rash
of buz;:-\\·ords and concepts developed such as '·The \ \ 'hole
Egg", "Orchestration .. and ·Aggregate Marketing.. :-ts ackenising
age ncies sought to im·ade non -media markC'ls a;; big if nor
bigge r than their tradit ional markets. 1--l,l,·ing cst,lblt;;hed a
do minant. maJor or significant presen ce m mnq markctmg
services sectors in most major and developmg markets m the
world, the Group is \veil placed to both broaden and deepen
its activiti es functionall y and geographtcall y.
\N PP Group Organisational Stmcture by Service
\!.u k ~·~
Suucture
FL,Jk,\\·mg th e signing Llf a definllt \T merger ,lgt-ccmcnt ,,n
June 26th, 1987. Vclur 8L1ard commen ced a dc t,lll cd re' \ ll'\\ ,,!
j\\'T Croup·s operat ions. in <1 rdcr 1<' ,tchtcn· ll :-. srr,Hcgtc
LlhJect ive of hu ildi ng the lll<lJl' r m ulll -n<tl ltlllal marketing
SC J'\'l LT ~ l'LlinjJany. il <llllWUncecJ th<ll L'<lCh Lli till' iLlllr hthll1 '' "~
units \\·ithin j\\ 'T Cwup \\'Lluld Ill luturc rL·Iatc' dii'l'cth
Ill VdT
\\ 'PP (.J n l UJl p ll ILl
 Chairman's Statement
Continued

This follows a trend many of our own clients have pursued. opportunities fo r cross -referra l a m o n g s t c li e nt s . Eac h
Namely becoming 'leaner and meaner' or the low cost committee, built aro und o ur pa ra ll e l m ed ia ach-e ni s ing
producer, not only by becoming more and more efficient in n etworks, the j \Valt er Th o mpson Co mpa n y a nd Lo rd G e lle r
production, but also administratively This trend towards the Federi co Eins tein , compl e m e nt a nd rein fo rce th e ac ti v ities o f
reduction in layers of management has been led by advances Rasor Communica tio ns Limi te d a nd Ras L)r Co mmunic atio n s
in information technology As Peter Drucker says in the Har Incorporated . the d ivisio n a l h o lding co m pa ni es fo rm ed to co-
vard Business Review, "... layers of management neither make ordinate and d evelo p the Gro u p's n o n-m ed ia ad ve rti s ing and
decisions nor lead. Instead their main, if not their only, fun ction is to spec ialis t communicat io n s ac ti v iu es in th e U nit e d King d o m
serve as relays - human boostersfor thefaint , unfocused signals that and United States.
pass for communication in the traditional pre-informalion
o rga nisa tio n ~ Tom Peters in a McKinsey Report on advanced WPP Group Organis ational Structure b y E ntity
manufac turing technology added, "thefirst step in accomplishing
successful plant-floor implementation of new manufacturing
processes is the clear out of all the middle managers and support-
service layers that clog the wheels of c hange~ A recent study by
j Waiter Thompson Lo rd Gcll cr Fcclerico
AT Keam ey, which divided 41 companies into 'wi nners' and
Compa ny Em s te in
'losers' based on long-term financial performance, found that
Ct lll l rnunl(. :u l l ll b
winners had on ave rage almost four fewer laye rs of
management than the losers The winners had almost 500
fewer staff at headquarters, for every $1 billion of turnover
compared to the average for their industries.
This structu re resp o nds to th e in c reas ing ly sophi s ti ca ted a nd
Your Board was pleased to confirm that Hill and Know!ton
geographical d em a nds pl aced o n the G ro u p by its cli ents.
would continue to be headed by its existing Chief Executi ve
Offi cer, Bob Dilenschneider, as would MRB Group by Frank
Although som e argu e th a t glo b a l de m a nd fo r, a nd d e livery o f,
Stanton. In addition, following recent changes at Lord Geller
marketing services m ay n or ye t b e s ig nifi ca nt th e re is n o
Federico Einstein, we were delighted to announce the
d oubt th at the o p eratio ns of n' os t o f th e G mup·s c li e nts h ave
appointments of Agi Clark, Tim Elliott and Bill Wa rdell as the
becom e increasing ly co m p lex and int e rn a tio n a l lwe r the las t
Senior Executive Officers Your Board was also delighted to
ten yea rs a nd that thi s ha s h ad a s ig:o ifi ca nt im pact o n the
announce the return of Bun Manning to the j Waiter
nature of their d e m an d s m ade o n th e ir SC I'' Ice CL)!ll panies.
Thompson Company as its Chairman and Chief Executi ve
O n e of the diffi culti es th a t adve rti s ing agc nc ic,. face is tha t
Officer. Mr Manning worked for thej Waiter Thompson
they h ave to behave ltke a nd m a tc h th e rt'SL)urce s o f Li~ e nts
Company for 19 1/ 1 yea rs until1986, and was Chairman and
w ho are la rge r and m ore reso u rceful He n ce th e reve nues o f
Chief Executive Offi cer ofj Waiter Thompson USA from 1980
th e wo rld's la rges t ad ve ru s ing age n c ies a rc s till s m a ll e r than
to 1986, duri ng which tim e that age ncy established itself not
th e pre -tax pro fi ts of it s la rges t c lien ts
onl y as the most creative and effecti ve age ncy in the United
States, but also as a highl y profitable uni t Th e impo rtan ce n f tht s s truu u re 1s in di ca ted h\ th e inc reasino
number of cli en ts se rv1ced h y th e C r,)up Ill I\\ ,, ,,r m,)re
In order to manage an d co-ordinate this expansion , and
marketing services or et lllnt nes
develop th e Group's organisational structure around the
world, following the acq uisition ofJWT Gro up it was A thi rd d 1v1slu na l hlllclmg u ' m pan y. 'v\ Ire & l'l as !IL Product
announced that two new comm ittees would be form ed to Limi ted . IS res ron slh le !or L(l - P rdma l Ill )'!_ I hl' <.. d 'l lll p 's

ens ure that all Group companies joim ly ex plore all tracliu o na l manu laL IUn ng at 11\'ll ll' ..,

20 W PP Gro up plc
 This s tructure also responds to the challenge of m oni toring a
multi -national operation from one side of the Atlantic. As Sir
Gordon White, Chairman of Hanson Industries Inc., put it
"I don't believe you can run a maJOI' US company from abroad.
-George lllthed to nm the United States from Bhtain, and loo!< what
happened to him'" By rel ying more on national management in
each country, a stronger o rganisation will be built.
The public company Boa rd will continue to develop and
implement the financial strategy of the Group thus
maintaining an appropria te distinction between the skills and
resources n eeded to manage the professional or craft side and
those needed to manage the business side. This approach
which maintains a separation between the professional and
financial aspects of the business has proven to be a major
attraction to m any of the companies that have joined the
Group this year. In addition, it enables the Group to emphasise
what Michael Porter of the Harvard Business School, in
analysi ng successful competiti ve strategies, terms "transfer of
skills", and "share ac ti vi ties" amongst its portfolio of companies.
However, the subs tantial expansion of the Company this year,
w hich involved , amongst other events, the acquisition of a
company seven times our size (in revenues if not in profits)
and w hich operated from 245 offices in 45 countries as
o pposed to o ur 31 offi ces in 2 countries, has necessitated a
substantial expansion of the public company's executive and
non-executive resources.
The objec ti ves of the holding company are three-fold. Firstl y,
to plan, budget and monitOr the fin ancial strategy, tac tics and
performance of the Group. Secondl y, to plan, negotiate and
execute the acquisition strategy of the Group, and describe
and explain the Gro up's strategy to its existing and potential
institutional investors. Finally, to stimul ate and foster the
cross- referral and synergistic (as hoiTible a word as global)
developm ents between the different activities, fun ctions and
countries across the Group
To ac hieve these objectives a number of senior ap pointments
have been m ade and the holding company, wit h offices in
Londo n and New Yo rk, now consists of over twenty
professio nal s Two key executi ves have been appoin ted who
ha ve experi e nce of the same treasury and tax fun ctions at
Guinness and Saatchi & Saatchi Company Three divisional
controllers have been appointed to cover theJWT Group on a
geographical basis, who, although they are all still in their
thirties, have extensive experience of financial control at such
companies as Saatchi & Saatchi Company, Anhur Andersen
& Co, and Pepsi-Cola. In addition, financ ial directors have
been installed at Rasor Communications Incorporated, Rasor
Communications Limited and Wire & Plastic Products
Limited all of whom have extensive experience at Big Eight
audit firms or public companies.
The activities of these controllers and financial directors could
be likened tO AWACS or advanced warning aircraft, whose
role is ro warn in advance, or as soon as possible after the
event, of variances against budget.
Further appointments have been made in the areas of
acquisitions, institutional inves tOr relationships and corporate
communications of young professionals with strong
analytical backgrounds with Scottish Provident, a major
Scottish insti tution, General Electric Pension Fund, a major
US pension fund and the Financial Times.
Finally, in order tO co-ordinate the ac tivi ties of the Group and
develop clearer strategic m arketing advice for our clients, two
non-executive directOrs have been appointed.j eremy
Bull more (58), who was the Chairman ofj Waiter Thompson
Company in the United Kingdom for 11 years, and with the
agenc y for 34 years, will help Group companies work more
closely rogether for the benefit of clients, ro provide strategic
advice and integrated communications programmes.
John Quelch (36), who is an Associate Professor of Business
Admi nistration at the Grad uate School of Business at Harvard
Universit y, wi ll advise the Group on the development of its
strategic services for major national and multi-national clients.
Incentive and motivation
One of your Board's key concerns is not onl y to stimulate the
highest professional standards in order to attract the highest
quali ty specialists in all areas of its operation. but also to see
that they are appropliately rewarded. To this end the Gro up
had alread y introduced a stock option plan and a share
purchase plan, and this yea r introduced three fun her sc hem es
\\'PP <..~ ro up plc 21
 Chairman's Statement
Continued

with similar objectives - a profit sharing plan, an option plan the restri cti o ns c u rTc ntl y 11 1 \ , ,,.l , .. 1r,· ,)\·l· rhu rd ensom c. Your
specifically designed for United States executives and a SAYE Compan y is makrn g C\"LTY L·ll( 1r1 tl' lll')C.L ll l,1t L' .1 reductio n in
plan. Total separation of the ownership and the control of a these res tri ct io ns. \\·hrl c.t L" llll tll l lllll )C, Il 1 rmpkmclll it s
company may well have a negative effect on performance - phil osophy of ca rclu ll y c. tru ctunng ,l!ld t\ ·rng th e exercise of
indeed recent academic research by such bodies as the o ptio ns to th e pc rfo r 111 , 111 cc l1l 1hL· L'lllpl l '~ T l··,.. bus in ess umL
Industrial Participation Association and Hay Group Inc. In additi o n, rece n t sha rp l.dl ,-, rn the -.;l l'L" k \Lt rk c t ha\·e
suggests that this is so. As Warren Buffet puts it in his owner- dramati call y reduced the JILTL"L' IH' d .l!ld .1L·tu.d \·,due of stock
related business principles at Berkshire Hathaway !ne, "We ea t o pti o ns. To th e e mpl oy ee th e tt 1n ec. ;11 \\ lw : h thL·se o pt ions are
our own coohing." Your Board intends to continue to develop
all ocated seem a rbt·trary h 1r c:-:·;tmp IL.· ·11 1 L·mpk1\·ee , \\·ho \\'a
further ideas to see that staff and shareholders have common allocated o pti o ns Ill the fir,-, I c rg ht n· rl d :t\ ·c. ', j Ck' wbc r \\·ould
fin ancial goals in improving profit perf01mance.
not be partt.cu 1a r1,, · m o ti \··•uedh \·. th l"'L'l'j)
· tl c'n""llthis
. poimin
The acquisition of]WT Group posed a particular issue in . e. I n or cl er t() c nsL1
um . 1"L' th·u
· the ·-., m "dlnumhe r L'l share
relation to incentives as it did nor include an earn-out. In . I .
opuo ns t 1at ca n 1x , ' , dl JC ·ucd ·.1rL' 1·..,-.·; ucd IL' lll ct:-:i mum effect,
addirion,jWT Group managers were nor major shareholders, r ny to re- .tSc."L1L' cll
some fac .,. _, c·ti·L· ·-., ·· l[ ··t ll l\\"LT j! rJ L"e. l)l" al\ ocare
.
the Board of the Company owning less than one per cent of optio n share a t m o re freque nt tnt LT\·:t! c. u r <lt <l\·c r;1ge pnc
the company. Over the first six months of ownership, your should be introduccc.lt c' rcdu cL' th e imp<tL.I L11 sharpgyra non
Board has developed with the Chief Executives of each JWT in th e Stock Ma rket s. Yuur Co mp<~n y \\·Jil L"ll !Hinue to press ~ r

Group business unit, on a top-down and bottom-up basis, such change.

both a Two Year Pl an for 1988 and 1989 and a Budget for
1988 that reflect the Group's fin ancial objectives. Once these
plans and budgets were agreed your Board felt that it was onl y
appropriate that the management of each company should be
motivated to reach these targets.
Th e Group co ntinues to tr<td c ,-,<~llc.LlLil'n l y. ;m d th e Board is
delighted to report th a t \\ ·c a ntr c tp~ u e th a t I YSM \\·tll be
,.,,-. \\·ell Uj) tu th e e ·:-.:pcc t;Hi L'Il s L) l those borh
anot h er reco rcl ycc.
in side and o utside th e Co mrx m y

To this end substantial incentives have been offered if the

mutually-agreed budgets are reached. Un fortunately, these
incenti ves, although they will have a substantial deferred
element, will be primaril y in cash despi te your Board's desire
to closely link ownership and control. This is primaril y
because of the restrictions placed on United Kingdom
JR Sy mo nd s
companies by nited Kingdom institutions in respect of
Chairman
shares iss ued under share incemi ve schemes.

Some people, including Wa rren Buffet, Chairman of Berkshire

Hat haway lnc, believe that option are not in the interests of
shareholdus as ·mwwgers actually apply a double standard to
opl i011S.. I believe it is fair to say that nowhere in the bL1siness world
arc 1en-yeur options on all or a portion ofa business granted to
ouhide r~ ... Any outsider wan ti ng to secu re ., uch an option wou ld he
rt'qwrcd w pay fully for capital added during the option period " it
IS, howe ver, particularl y imponam wnh serv ice compani es
that share ownershi p is encouraged wherever possible, and

22 WPP Group plc

 The Case for Services- A Growth Industry

Services - a Definition
Services are not easy to define. Adam Smith classified them as
things which "perish in the ve1y instance of their pe rformance ~
The Bank of England in a more recent description in 1985
classified them as "anything that can be bought and sold which
changes the mental or physical condition ofa person or ofgoods
belonging to the consumer." The Economist's livelier description
was "those fruits of economic activity (except for this Annual
Report) you can't drop on your toes." Although as Theodore
Levitt points out, "service is everybody's business."
Whatever they are they can broadly be separated into four
categories:
• Governmental, social, educational and legal
• Personal, eg: medical, leisure
• Financial, transport and distribution
• Business services, eg: accountancy, data processing,
advertising, leasing and franchising.
suppli ers acco unt fo r 70%. Th e \\·oriel market fo r databank
consult ati ons (estim ated a t SS billi on~~ yea r) is g row ing at
40% per annum , ne\\'S d ;:naba nks by 60'3o pe r a nnum .
Services already acco unt fo r 50% o f e m p loy m e nt an d output
in all ad vanced econo mi es By th e yc~tr 2000. th e proportion is
expec tedto be 70-80% As Gcorgc \\'i ll said in NcwS\\·eek,
"McDona ld's has more employees clwn L'S Sec cl. Golde n arches not
blastjLmwces symbolise rhe AnHTicu n cCll llOJll\:.. Th e Tec hnical
Change Centre fo recasts a sc r-.; ic c-bascd buom centred on
information tec hn ology that \\· ill a lso in\·o h·c int ernational
trade in services No t surp1i sing \\' he n you co n s ide r o nl y 8%
of world services are traded , co m pa rcel \\·it h 4SC'Yo for
manufactured goods anc\ 65% fo r ag ri c u ltural p rod uce.
Trends in US Employ m e nt b y Sector 1860- 1980
70

Comparisons can be drawn between industrial functio ns and bO

their equals in services: \ Ag n c uhura l

~
50

40
In Industry Equals In Services
Railways Data Highways 30
Power Stations Compute rs
Sewage Systems Encryption/Security 20
Canals Optical Fibres
Harbours TeleportS
hl
Industrial Zones Service Zones
Assembly PlantS Intelligent Builchn?,s
0 J<l80
Water Treatment Pl ants \e\ om mumcations I YU~l
] 1..1--h ' ] 1..l(1tl
t l:lbO
Stlos Databanks ~!11111' I "' I '· ·ra un Jt ' IH .. , ( o>tlll>l t"l •' fj ,, ,, ,1!. · •/li lt I ' ' "'" //i -.1· " 1< ,i/ " ' ·:''''" ' , ., dh I 'ot l/t';'
1
) /(1/('\ I \\ ' tl \ hlll,i.:l•"l I )( I .... ( "'\· 'l l ll h 11/ /'tU l/1 11\'' 'Ill·' I I l I ; ,/ lh / 1 ... I ), ·J 'tl l l llh' rt / '
Motorways VANs, LA 's. ISDN ( d 11!Hh' r t t lll no "(/11 ••/l h • ( ..,, , ," \ 1, /f l ' ' " .1/ \ h • t•d• I •r t it. I ' \\ , J , Iw l~ /,>tl f)(
I 'i ( 1 ol\o ' n l"l< l lf l'r l'l/lrl\' li/Jt•• / •IH-f l : .'/

High Growth
Some services are growing faster than others. The world
market for communications services (excluding advertising)
has been growing at 20% per annum and is now an esti mated
$60 bill ion a year business. In Western Europe, the software
market totals $5 billion a year, but with an annua l growth rate
of 30%, would total $24 bill ion by 1991; that compares with a
worldwide market today worth $30 billion, of whic h American
Despite this size and grow th po ten Jta l. agriL' ult urc ,; til l
dominates govemm ent thinking. In F:u rPp~. lllr exa mple.
farm ing accounts for on ly '5% ol 1 he C;N P l'l the F:fC a nd a
mere 2.8% of value added , hut ta ke:-. h 7')'<> <' ' 1 he C·ummunity
Budget. Th e im pli ca ti ons ol tht s !o r le ve l-. ,,f un c mpl<' )'!llent
are particu larl y se vere in Eu rPp~ \t\ 'htl -.t th <· l ·nll cd States and
j apan may rec ove r tlt pre- ILJ7 l1 rccc-.-.. t,,n leve l-.' ' '
employ ment wtthin a few yea r<-. <ll' ILJL)t l rc-.. l' ' ·' ·tt \'l· h . l'. ur,,pe
has shed so many manul au urt ng I' ,b-., -.. tll c ( ' 1h e r,·n·-;-; t,ln l hat

24 WPI' Group plc

it would have lO raise its growth in employment by a faclOr of hard to apply New transnationals from japa n are building up
20 lO reach pre-1979 employm ent levels by 1990. empires that Ame1ica's /TT and Exxons would never have dared
dream of So it is not only a shift in mar het stn1cture, but also a shift
Between 1960 and 1983, agriculture and industry in the EEC
in geographical power dist1ibution which includes the reconversion
sh ed 16 million jobs and services created 19 million now
of the world economy"
accounting for 57% of the EECs workforce.
Comparative trends in the Dow ]ones 30 Industrials and
EEC Employment by Sector Cambridge 30 Services 1963-84
Agn culturc Indu stry
To<aI Index
l ll1 )
800
IY!H 36

700
I Y7-l 3 1:l
~

600
196-l Jb

500
I Y"i-l 35

-l OO
% 0 20 -\ () 60 80 100

'- •ur , ,. ( ~um o ·r f'cluh . ) ,·nt, ,., - /ln\111).: f,, ,, ,. ••/ rht f. ,m,lm \
300

Although some are concerned at the decline in the

200
importance of the manufacturing sectors of mature
,.-,..,.
economies, there is not necessaril y a contradiction or a
100
conflict. As Russell Ackoff of Whanon Business School said,
"this shift towards a service economy does not mean that fewer goods
0
will be produced and consumed any more than the end of the 6-l 66 68 70 72 76 78 so 82 I:H

agricultural era meant tha t fewer agricu ltural products were

produced and consumed. What it does mean is that fewer people
will be required to produce manufactured gnods." Indeed industry Media Advertising expenditure versus Share Performance

wo uld be the first to improve its competiti veness from a reliable Lm

12Llll
se rvices infrastructure. Rough ly 70% of value-added created by 1600

ind ustry is generated by services to production. By 1990, the l4tl<l

contribution of services to value added in the pha:~maceutical sector

I lOLl
could reach 82%, whil st in the car industry it will remain at 52%.

Gumer Pauli in his book "Services - D1iving Force of the Economy',

summ ed up the opportunit y as follows
"Transnational nwnufactwiny, cmpm·at ions sti ll command the
headlines, the btiSJness, the emplovment. the wealth. Btll the
( hallen?,e of the 1990's and hevond cannot he met /Jv them alone. 1;1 () rd n ur~ All '-h,lrc lndc;.;
t ngh1h.md "L,tlc'
New tmn snatwnctl servic e compa nies arc coming Ltp_~·om nowhue.
lnlildi11,1; ur allwnccs Without t apiWI participa li011 , monopoiLsing
markeh whae the slwrcholders arc alwthe clienLs, tTeating
natu>nal markeh whi t h nwi<L· rhc nm 1ons of dwnpmg and cw·tcls

\\"P I, (~ n 1u p plc l. ')

 The Case for Services- A Growth Industry
Continued

Services offer best return a po11ll " ·hac the lll \ fll ll/1 <1 11 1' ' " ' 11•111\1 /1/t' /<1 1. 'JI<11l" \ ·c!l!lt' than the
According to the !CC Information Group, servi ce industries inc/r r i£/IILir
are rhe strongest perfonning sector o f thEUK econam . In
it has rcccml y hcnmw l.t-.h relll;rhl e· 111 r11n c h.ml b a nking circles t
term~ of retmn on s han; holcle rs· fund ', the in dustrial and
concentrate 0\\ c-s:,\\ \\,,,, _,,n,\ m .\w-. ,m ,\\, --..-,_\\.\'-:~ ~~R\ !:d cash flow
comtnercial services sectors average of 46.4% is well up on
~ consis m~ o f twu c·\ c·m cm ,., unh· - L·.1n1mg-. h clorc inLet -r
industry's average of 23.8%. A l:t <l.! R. l.<c: m on investmem is
taxes. and dcp rcuat ro n .llld ,ll lll1 rl h.ll le11l te' r 11 Lll1 -cash ch ar2 -
1°(~ ~'\. <\\:1:-S compared to l6% (or other industrial secrors.
\\'hat such an analy:->rs l<trb le 1 ;td-: n, 1\\·kdgc tll" t;tkc into accOLml is
This is panly explained by the lower capital needs of se rvices, the amount of Gtprtal c:-: rx:nd n urt' ncc·dL·d te' numt;tin the long-1
but research shows that services also had the fastest growth in co mpetiti ve pos iti o n o lth c LL' Illp;tm· \\ ;IITc n Buffet muses on
sales and assets - over the last three years sales were up 26% thc ahsu rdil \' O/liJ ,· uhlt fl•'" 1111111I '' T ' Liwl uh· c'/lt'll set fo rth in
per annum, against 12% for the whole of industry, while asse ts \Va /1 Sl rcc tl·q )()Us 111< 1'/ ,u/, ·-; ln ·o, Inn·,· -; <'/ Jll\ "e" \ llllt' lll /Jani<CI
were up 25%, compared with an average of 13%. also ha1·c dcccpli\'Cprc -;,· 11/clli<llb •'/ ciJ" i<u Jd Tlr,·.-;c i1nplv dwl the
business is /Jciny, o[fcrcci ih cl1c c ' ''""l tT<ru l, <111111npw ·r ,,(dtc
Services growth rate reflected in stock price performance
Pyw micls - Jm · n ·u \ lUl c-• '1 -r iJ,· -u , r. II<TtTIIt "t ·, /Jn,..:, 111 J,c ,·cplaccd,
The rapid growth in services has been refl ec ted in the srock
1mpnwcd or rcfur!JisiJnl illclcccl. 1/ u/1 L '111lccl Sliilcs <"<n-porations
market. As Professor james Heskett points out in his book
wen: lO he o[fc,·ccl simui ldll t"'''''h /• '' "'it- £ilr,,u,l!,l' <1111· /cading
'Managing in the Service Economy: "The Ca mbridge Service
in vcstmcnl hanh,.,.,- unci if ,u ]c , 1'1"1'< lnuc., tf,·_,, r~l' ill,l!, Lit em were l tl
Index (a group of30 service Jinm' stocks) haveJar out pe1jonned
be he li cvcd - )!,Ovc nnn ,· nlulf' I"I'J<"< 111'11 -' ,1/ {111Uiltit1 iplu nllinga nd
the Dow )ones Industrials over the past 20 years both in up-tums
eqwpmcnl spcnclin,l!, \·I'C1 11/d ltm ·c In h· , ]u siit'd />\ ' <)0'1.•...
and down-tums, achieving a compounded growth rate in value
more than four times that of the traditional indicators' offerings" It is here tha t serv ice hu s in eS:->l' 'i ,tnd lll<trk c ting se rvices
busmesses, in ]Xtrti c ul a r. C\1 1lll" Jnt t' t h e ir el\\·n s in ce th eir
The value of goodwill - true cash flow
ca pita l replacemen t n ee d ~ ;trc mintJn ;d Thctr ma 1o r
The tradi!:ional concern amongst institutions surrounding
in vestme nt is in peo rl c accn unt tn g fn r "50- hl~'}n p f LL1 tal cost .
intangible assets and their habit of "going up and down in the
Iif( and "in and out of the door each day~ has recentl y been
reinforced by industry events. This fear is, however, to a large
extent diffused by an appreciation of the value of goodwill , of
th e inadequacy of traditional accounting techniques to
appropriately value intangible assets and of the need to ignore
goodwill amortisation (a non-cash charge) in evalua ting
operating results or valuing busin esses. Moreover, as Wa rren
Buffet said in the Berkshire Hathaway Annual Report 1984,
"Goodwill is the gift that i< eepsgiving" Warren Buffet's analysis is
also reflected in his comments in the Financial Times in Fehruary
1987 on the rumoured acquisition of theJWT Group, "They used to
say that the asseLs ofan ad agency go down the elevator at night,
that you would be buying a shell. / do not thin!< that is valid with a
maJor agency lt:s the difference between buying into the low / brain
surgeon and buying into the Mayo Clinic
When you come to a company the SlZC of.JW7;you have ,·eachfd

26 WPP c,ro ur plc

 The Case for Investn1ent in the Marketing Services Industry

Growth in Worldwide Marketing Services expenditure can be achieved by enhanced marke[ing in ves[menL As Sir
World\\'id c marketin ' sc rvi TS cxpcndilli!T is currentl y won h David OtT, Chairman ofUnil ever 1974-82, said in a preface w
c!pprmun ~tt e l y ~ - L)l'\ 1,:11 Ion .lll cll, .. ._ been grc" '·ing nl he!\ 11
'l' L1 :1 recemboo!\. ·u /numl r/Jmo rn/r /1 \' rem~ ct'lfcrc"'· u /) ufl\'('1'-'
J0-25% per a nnum . a ntix lurc of, vlwt . .. isdc.\cri/Jedas·l.d liOIJO/' and ·nOIHLllliliJQ/ '
Worldwide Marketing Services expenditure- 1987 (S 13i llion) /Jcncnts. lt is anassurance ofconsistcnl qualilv to consumers and tn
Rest of rcta ilm . A hra nd's onlyjustij!ca tion is cl wlll pnwidcs H' hut the
~tarkc ting Services
Segme nt th e World
u~ UK France G t:n11 ~1n y Jap.m \ \1 tl rld \ ViJ~o· cn11su1n(T 1vants hcttc1· than does the cmnpcti lion ln a marhct
:-. kd l,\ :\d \t..' rl l ... l ll,L!. l l' '~n' l l tl id Ill I,) 2 'i 1,) 4 .! l' 200.0 ccmwn1y the pw-clwscr will dec ide whQl hcnef!ts he or she I'Olucs
l'uhlt L Rc l.l !l\'11 " <1 '\
11' ll) tl (1
2 ·• tl 7 14 .5
most highlv and 1vill vote wicl1 his m- her do llars.. . A hrand i.1a
:-. l.u·kct Rl·..,c.lrLh l 'i LH d2 Ll) ll ) I ~ 3.9
~llll · \ kdi . l :\d \ 't,.'l"{l ... lllg
wasting asse t, which must he rLplaccd and rejuvenated if it is w
c;,,,l'ln,, (, n~ ·, r.t:n 1111 lll IlK J) thrive.- The Ja[e Roben Goldstein. Procter & Gamble's
I2 ·I 'i 22.0
In, olfnt" {.- .\ f,,/1 \dl!on 2 t) IH lli tl 2 tl) llK 4.0 VP-Aclvenising, expressed it as follo11·s on [he Company's
~a/c , Pum !( l /11111 l1ll\(l 11111 7 l) I.JL) l'ill 31..)l) 190.0 l 50th Anniversary. "\\lc"1-c loohingforadvcrtising rha1 builds the
r\udJtl \'1\IHI/{~ \ 'r,J,·, , 2l' ''l 1,) 2 1.) ) (l 5 1,17 -1.0 /Jusiness, that increases the bra11ds' position, but . . we ·,-c lool<ingfo r
...,pl"l.. l,d bt ( .Llrtllllll ll iL. Hi tl lh
advertising that uca rcs an cndwi ng equity value ... sometimes it s
Rt'll/htcltt ' lli-< ll l lH (I !
t..' 2 l' 2 1.8 called personality Sometimes it sexpressed as hrand character··
hlld l h ltll ( tlfi!II!W I It (1/ l tl ll \ (ll)
''l ll l ll i t1) ll l 2.0
1-rllllh <ll l
l l') L1..'! <Ill <ll i <ll l 0.9 • The fragmemation of th e media imo [elevision. radio and
11ul1/11 Alfun . 1l) (ll
..'! '-} ll') \) 2 l)q 5.1 print has divided the media audience imo smaller segmems.
/)u, ·, 1 .\lcu l illll 2 \) I! Jcl )l) i"l' 36.l)
Rt", \tl Over the past ten years in the nitccl States there has been a
1/IHmo tr Ll""i \) 2 1H Ll(l llY ) .6
J f, ol lllh ,/lt"
..'!t' ll-1 l ) ..'! ,, \ ll {l \)) H<
-+8% increase in the num ber of [eJcl·ision S[ations tha t can be
Tot al 260.1 3ll.2 17.5 H9 66.2 9-1.7 493.6 rece ived in eac h home. r\t th e same time [he number or
'•'lo' • • l •loll"l ' \ •' " ' ' hill• "h ( o' l• ''l'lh 11/ ,J, u" H / '/'1 ' ' ' 'llf' homes 11·ith multiple T \ ' sets increased from -+8°/o lO 6-+'Joof
homes. The average home receives ll.-+ T\.' sta[ion s ,·ersus
Currcm ly th e fi ve ma1ur markets. the United Stat es, japa n, th e
77 ten yea rs ago. \'CRs have now achic,·cd '5'5'}n penetration.
nited l< ingclom, France and Germ any dom inate this world -
In addition. the nu mber of consumer maga:mcs and rad tLl
ll·idc market accounting for 80% of worl dwide marketing
services ex penditure stat ions hal'e dramaticall y incrcasccl. ln 1<.)88. rhcrc ,,.cJT
I .7 22 consumer maga: ines comparedw 1.018 m IY78. a bY'Jc,
World wide medi a ad1·erusing c:-;penc.lit ures have gr0\\'11 hy increase. The nu m her ol radio stati ons increased from 8.1:\(1-f
elVe r IU"/o per ann um tl\'cr the last fi ve years. There arc sc,·cral in 1978 w l0.07-+ in 1981:-l. or a !-+";., increase.
lacJ tl rS hehmclthi s gruwth 11·hkh \\'ill CLlllt inuc to fuel its
gmw th 111 the lwure: • The increasmg com-cnt rarttlnt>f retail distrihulll'll h~'"
in creased! he pressure L)Jl br:1ndcd gol1cls manulac1 urers and
• l he message is il) bu ild stn1ng brands- a brand establishes
t'll CL1llragccJ the dCI'e kl!JillCil l lliiTl<liJcr L111"ll -JahcJLli" gL'Ill'IK
confidc nn' Brands ex tst ms1c.le 1he CLln sum er·s head. As an
brands (and in ll'hich bat tle CH' ll 11:1ckagtng dc,;tgn b pl,llmg
exam ple. H.J . Hein : h a~ a J umin an1 market share in baked
an im port ant rold . I!rug chat tb aL·c,,umcd !or h l)'\, ,,lth,-
bea n ~ 111 C rca t Brn am. ye t 111 a blind test nl!1 sumcrs preferred
Unitcd States market:" in fL)?''i 1·crsus -++9');, 111 197(1 S11ntlarh.
HP he a n ~ '52')(, 10 ·+I-N0 \\ 'hen 1he labels \\'l'rC replaced Hcin:
lol)d chains accoumcd lor -+lJ.2c'o 1·crsus -f()_L)''o. In LL'ildL'Il.
11 ll ll 7l1'k, 111 30'l'o In creasingly. markctmg succcs" ,,·ill he
l\l'l) retail chain s t"llil ln11Ll\'LT hll'J,, L'l all gn,ccn -ale..;
related ltl lh c dew lc,pm cnt ,,l cumpelt li\'C hrands. This \\'ill
depend 111Jurn Lln h,," . brand 1 · a l ue~ ,1rc huilt and \\' hether 8 The lnngcr-term lll\"CSI!l1L'Ill h1 hra n,l m<lrkctcr' m 1ht' lr
h r~m d ~ ar-c acknlll-t·icdgcd ILl he a,.,sc l ~ \till all y unt·cnlglll ~cd hrand lran ch1se' (,1s1ud1 '"·er 2l) 1car' ,·arr!l'd t1ll l h1 i11,·
h1 Jradti lllila l dCCL'unt mg LL' nLTJ1h ' tlll 11·ht d 1 grea ter re turns ::-Mmcgic Pl,lnn tng lnsllllllL,.o. Pli\1~ - Pt\ llit lmp.ll·t,,l
 The Case for Investment in the Marketing Services Industry
Continued

Marketing Strategy - Programme has established market Worldwide Media Adve rtis ing Growth 1982-88

share as an important determinant of profit and has clearly Sb n

established that companies who have been consistent 250

- 10 3%
advertisers over the years enjoy dominant market share) and · I I } '\,

top advertisers' advertising spending has exhibited greater 200 · I '\ I '\'

stability and growth when compared to fixed capital spending. . " ) '\
!50 - JnO% + 12.0%
-6 1'\. .. 26 1%
-07'lb -8 1
Brand Investing
0%
Top Consumer Advertiser's Capital Spending versus 100 -2 2%
Advertising Spending 1982-86
-9.0%
50 - 7.8 %
- 7.5%
82 83 84 85 86 - 158% - 179%
Capital spe nding (SBn) - 10 .2% ·rl 3.9%
9.2 7.2 10.0 13.5 15.8
0
%change (222%) 39.0% 35.3% 17.0% H·l H7 88
H2 H3

Advenising spe nding (SBn) 3.7 4.2 5.0 7.5 7.6

%change 14 1% 19.2% 50.5% 0 .9%

Souru mdttdts Procrcrt.... Gamblr, Phthp Morm, R)R NabiS(o. GM, Ford, Anhcusc r-8t15C h,
McDcnald's. PtpsiCO, Gtntral Mills. uultZtd Ad\·t rrastng Agc and Va lue Lmt daw
US Advertising ex penditure as a% of
GNP 1975-87
• The increasing de-regulation of television in many markets
particularly outside the United States and in Europe.
J -!0

• The emergence of new product categories such as personal

1 35
computers, wine coolers or overnight package services in the
past and, perhaps, prescription drugs in the future (over the
I 30
counter drugs are a $1.2 billion category now) and, at the
same time, the reduction in technological differentation
'
between products and more rapid competitive responses.
I 25 /
Gone are the days when a major packaged goods
I 20
manufacturer could spend many years developing the paper
diaper by experimenting with paper technology and testing
I I)
the product extensively both locally and regionally. Now,
product introductions have to be quick and less rigorously I 10
reviewed. At the same time, such a manufacturer has entered
commodity-like categories such as coffee, orange juice and
tissues, quite different to product categories which it used to 105 ( .1
dom inate through technological differentiation. I 00

Whil st this overall growth has been impressive, these figures

095
disguise signifi cant shi fts in the pattern of growth of 7'; 77 7Y I< I ,"-'. ) K7

marketing services expenditures 'ul i or< ,. /I /l o•t h" lu /cl ,~-' '

28 WPP Group plc

 Marketing Costs as % of Total Sales Advertising as % of GNP 1986
lndustna l goods Srrnces %
% Consurnl.'r goods
2.5
16

2.0
H

1. 5
12

1.0
10
1
8

6
Sou m ·:Starch INRA Hoopcr Inc

Advertising Spend per Capita 1986

-+00

80 300

Sun'e)' of 128 Europea n Compames

Souru ln s!:ad
200 J
100

Media Advertising/ GNP Growth relative to US

:\ch-er-
Ttmt' u ~mg
\\.e rghtcd 14R6 Source. Starch INRA Hoopcr /ne
HI H2 HJ H) R6 Average Sm
Tu rke y -100 000 \l )J I 201\ YHH -!H 'iHtl 178 2
Faster media advertising growth internationally
l-12'! t070l -IN t 2 35 1 'I 12 552
Ita ly Firstly, media adverrising expenditures have been growing
1111 l oR 22-+ l l t> o<Jt> 1-10 3 7b l.l121l2
7 27 H2 til l 111> 72 H t>27
more rapidly outside rhe Un ited Stares and are forecast w
h nl and 7H tH l 11 7 lt\ 'i '>21 tl) 'i 2H4 OQ \2 grow faster
)2L)Ll \L)2 tll1t" tl lt\)1 lh)l) i tl{'t

14'5 I 12 l tl!1 ll6 ) 21 4 2 11

The reasons for rh is are clear in that advertisi ng as a % of GNP
1-ra n<..T 2 tlH Lll-1 I o'i 0 -!I 2 Hl -! H3 and per capita is significanrly less ou tside the United Stares.
Den mdrk t'i lll \ t\l -1 1\ \ lll2l\ I lt\ -+ 27 J) cJ 132 65 11\
~w cdl.'n
In addition, since the 195o·s, Amelica has lost share of GNP ro
t lll \ ll HI 02'> 2 75 lt\7 t l bll\ Ill-+ ')52 5
l ' I tit\ ltltl 102.675t\
Western Europe and japan
lrTi and
1-l'i ltlt\
'w rt:n land tO 4H\ 11 )) \ tl)) tl(\t\ l 2'J tltlt\ tl-11\ 1.1'> 1 4 Faster growth in non-media advertising
'-nn\a\ r 1Q{) \ 09\ ll)H4 \ 121 2 ll1 (H)ll 0 7tl 62R.B
Secondly, non-media advertising is growing faster than media
l-:ur1111t' r \4 )1 l)-+l) tl-H.., th)) ]tl4 2 6ll L)(lt'l )I.-H i ll
advertising. For example. in the Un ited Stares between 1985
Au-. tn .r IH )\ 1 tl )Ll 1 ::;,1 Lh->') 1 1H l)7 R t)16 +h 7
and 1987, media advertising expenditure grew by onl y 6-8%
l j... lldl"1 tl \tl llH 7 J ·~d tl'Oll >-+~) tl 41 7 "il)tl 7

'\t·th t·rland :- rO 7-+ t rllf'o \ ' 11"'21 ' tlt{l' 1.\l)(, t1 4.S tlltl21 1.-+'121 per annum . and is projected to grov.' by 8- lO% this year
\A.t·.., t ( ,tTtll, l ll\ ~ -H it )) Ll 7 tl tl tltl tl h l d 114 1 ] tli l ll·H I t~ ,()HLlll Whereas ren years ago promotional expenditure in the United
Japan tl IH Ki ngdom was 47% of wra l advertising and prommional
expend iture. it now accou ms for over 5'5%. In the United

\\VI' C.i ro up plc 29

The Casefor Investment in the Marketing Services Indust1y
Continued

States the same applies - in 1978 media ad ve rtising accounted i\ la n y fo nns L11 n u n -m u JJ ,I .tch lTII--.Jll ,\C, .ti"L' 11l1t ,, n ly g rO\\in!,
fo r 42% of lOtal advertising and promotional expenditure, m o re ra p id ly th a n lll l'J J,t ,t , I\ ·L· rt '" 'll .\C, . h ut .tr l· hccl1111ing large
whereas by 1986 it accounted for 32%. ind UStri eS Ill the ir ll\\"ll ri ~h i 1\c-L. llhL' I 11 ,·\ ,li"L' fr~tg lll e llt e d
th ey o ffe r o p pLl rtUfl lii L'~ lt ' ~" ~ r , 1\\ 1h h, .t Lqu 1,; 1t '' 'n. and,
beca use th e \· ha\T he e n , 1\· n iL1, ,J.: ,·d , 1r pc 1, 1rh- managed by
m ed ia ad , -c rus 111g co m pL-Ill <1r-.. . <.Ill hL· m .td,· ~~ ,; ignifi c alll part
Where the Promotion Dollars go o f th e m a rke un g S LT\ · i c c ~ ,, ll c rn iJ , 1 L· I IL' ll l ~
%
ofwtal
In a rece nt s un-cy ol till' L l--: ·-. lc ~ t d1n~ ~ tc h- c rtl ,;cr ,; publis hed
-fj
by Ca m pa ig n . m·e r h a ll hc ltn-cd d trl'c i m ~t rkctm g \\·o uld
~!ediaadventstng
40 beco m e m o re im pu n a ni th a n llll, tgc ~ tc h-n t i ,; ing h y th e year
2000 a nd th a t th e ir a ttiiuc.l c -. t<l ~~ tk ,; pr<>l1 1l>I i<m. marke t
35 resea rch , a nd n e\\· p ru c.lu u d c,·c iL1p m c n i reinf,,rcc th e
comm o n \' ie" · tha t th e c,c ~ cu, 1 r ~ ~ tr ,· n pc IL'~" r ~ tpid gr ~1 \\ · th .
30
90% o f th e 2 50 s u n ·c,·c c.l a l reach · u ~ c· d d i rc ct marke ting in
th e ir co mmuni ca ti o n ~ G llll p:u g n ~ :" L1 le ,;,; than -+ S'i'o of US
25
ad ult s c urre nt ly bu y pw d uu ~ t 1r -.. , -rYiL·c ,; 1hr,1 u g h direc t
0 ma rke ting :\oco mpa rahlc l1g u rc ,._, ,,; 1:-- in th,· U K but
79 80 81 82 83 85 86 esti ma tes s uggc c,J 11 ' " 1c ~~ Ih ~ tn h ~ dlth l· L·s lig urc . In ajul y
1987 sur\'ey by Des1gn \\ 'cc k L11 "i.l) l)l) llnii ,; h cli e nt s . 35'
said th e y \\T re c urren t Iy rc , .,,.,, .in g 1h e t r , ., '~"P<) r~ H c idcmiti es,
20% sa id 11 had he e n rc , ·le\\T d 1n I <)/-'.(1

Projected Growth Rates in Worldwide Marketing Services In Apri l of this yea r f\ lic h c l Rc lll,tr: . ll irc·c JL'r L'l \ 'is ual
expenditure 1988 (% per annum)
Co mmuni cati o n s !o r :\es t k ~,\ _ ~• uc.l . ··J--1 1., /tli"Y /iu s ulwu vs shown
Markcung Servi ces Rest of that medw mflcuwn 1.\ ill,l!, li<'l tl wn nu/ Jt> ll u lutf/ultt >ll, s,, <llt r
Segment us K France Gc m1any
the World
Japan World Wide
Ad,emsmg 8-10 spend ing wdl he p~t s h ccl lttJ "' ilt.t:. li tlttil ll t,·,l/ uf /t"t 1 t t>ll.\ltlliCr
~!edta 12 12 10 10 12 10+
l'ublll Relauons 15-20 15-20 10- 15 15-20 15-20 price~ \Vc ha ve hcc nlooh lll,t:, it lll,t:,· l c nn u 1 t lid ll,l:, lll,l:, t1Jtl wuvsof
I';-20 15-20
\ larket Research 10-15 15-20 15-20 15-20 15-20 15-20 15-20 traditional marhclill,l!,. truclllt <' II U! tl cil'lTIJ.q n,~.;, <lll<ii>J tv tll,l:, ll t'III'Orll
\:on·~ledta :\d\·enrsmg
tc/C\'!Sinn a nd " ' o n. 'v\'c t ll c n ·ti l lt tl l 111.1:. ll''" . , IJt >I {,., · lt"l111. iH> \\' \VC
(Jraplut ~ {- IJ,,~rxn 20-30 30-·W 30-40 20-30 20-30 20-10 20-40
cu n U ti dow n W e u rc lnnim t,'C, <11 li!t · lill ,l:,t"l 111 <1 1h ·/.\. ()Ill er
/11, l'lll!\f (..... .\1011\ atrnn 25-35 25-35 25-30 25-30 25-10 25-10 25-35
.'>uk s Prnmoi um 25-30 25-30 20-30 20-30 20-30 2\). 1L1 20-30
adven L'c'·' urc dn!ll,l!, th e ,,m ,t · tilt II,'.!,. , .t''' " ·c lil <"ll l 111<1\ ' 1 11~ into
Audw Vmwl {.-.. \'rdt'(l 25 2'; 20-2'; 20-25 20-25 20- 20-25 s po n sn r ~ hipan d pro~ ranlnltn,t:, . ull ,t ·lti l t· tl lt 1 /iiJtlin,t:,II<II?.,J\VtT
Spena h ~ t ( ommunr ta uon.., tm·get gro up<>" f\t th e sa m e 1llll c RP hc n Rtphag cn . Dircdor of
R,a/bWlt 30 25 25 25 2'> 25 25-30 Corpo ra te Pl a nnmg a nd f'v l.u·kc t mg . . , UJ1!1<> rt lc>r l'h ilips said
hnwuw/(ommwwawm; 15-30 25-JO 20-30 20- )Ll 25-30 20-)0 20 -30 "Adve rtl '> CI"'> w tll lnnh nHH I! n J <~ I t . t 1 l lt t t1 /h tll 11!,· ,, ., /\tilt "\ ' sp end
/·tiHll· 25 20-25 20 20 20 2530 20-30 moncv und UJ! hc ,.:.rcul til t l t"tht., /l <ll n/ 1! ,· 1>1 ,·,/ ,ti \\ ·,. iltl\ 't. }l,·t'll
Pui,Ju Aflmr' 25 20·25 20 20 2!1-l'i 2{1 20+
auep11nx till -' /111 \cu' ' c111ti JI J<II '' r/1 !>t · ' ' '''.1.!. /'tlld,· ·
f)ll at,\1utl /ll-15 20. /'\-2!1 15 l(\ 211· 15·21' 15-20
RftluHmtm 2L1- 20. 211 20 2(' 2('l 20+
lf, altllr(lfl 21 20 2fl .w 25 21' 20+ Short-te rm factors b t> hin d non - m e dia a d v ert is ing growth
l .llfrrlt.l!nn:tlll 21 .~ ') .w 2rl 2P 211 20+ it 1'-. tr ue Jo -,a > 1h<t l "t I!JJt · ' •I 1l1 l ,,·,t-..., 111-.. 1,1 1 1h~-... d ,·,·llll<' in
A'r'c ragc 15-20 15-20 15-20 15-20 15-20 15-20 15-20 mc J1 a aJn' rl l'> lll)!. ~ . . h .llt ,l! Jd -.. hil i ''''"'i't' ll ti ll u r,· .liT
,.,,, •r. .. ·•t.i •.. 1
.1'1' '''"' -;h(l rt ter m
" •

low inflation
Particul arl y in rece nt yea rs k~\\. mll ation rates ha\-e made it
difficult for compani es to pass Lm cos! in creases th ro ugh price
increases to the consumer. su th ey have looked for more direc t
and self-liquidating \\·ays uf selling th eir prod ucts.
Agency Megamergers
Further agency megamerge rs have. for prac tical (conllict
probl ems) and emotional (fi nan cial re\\·arcls to agency
personnel and hence se rvant s ben~min g enriched) reasons,
encouraged client manage ment s to CL~n ce nt ra t e on the \·alue
they are receiving. Th is led in pa n to increasing pressure on
agency co mpensati on. Alvin Ac henbaum . Chairman of
Camer, Ac henbaum , Assoc iates, \\'ho spec iali ses in IT\·ie\\'i ng
agency compensation agree ment s. claims...aln1os r ull
cnnipcnscuion dgrcc nicnrs an·I Ic,~ , , ri u r cd .. This slw n -term trend
togeth er with th e com·erge nce L'f tec hn okwruv '·md cliem
strategies, red ucti on in the le ngt h L' f pwduuli k-cyc les and
co nseq ue ni ughten mg l'l cli ento. c,, nllill ing j1L~ I ic i c~ . h li kel y
10 rcsuli 111 Iurn in in crco;tsingn'Ill'l' lllraiil'll in 1hc ach'cn tsing
age ncies marke1 and in po bn s~1ll l' n het\\'ee n th e H T )' big and
the ve ry small age ncies.
Such megamerge rs should not be cunfusecl ho\\'ever wiih
merge rs which \\·ill pi'll\· ick clients \\' ith the capabilit y to
uti lise both med ia and non-media marketing services on a
globaL multi -nati onaL imernati unal. nati onal or even local
has is Th ese transau iuns and the result ing organ ismil'll S, give
Iheir clien 1s whuse L'W il businesses have themsel ves heum1e
so much more CL'mple:--; and mulii -nati,,na\ ,wcr 1he last 2L)
years. 1he l'ppon unii y L)l e:--;ph'nng \\ ays ,,, dealing \\·i1 h 1he
oppon uniti es lac ing th em. Acn1rding to HL,aiT Cove tt ·s
analys1s of Ul< Q u01 ed PLC:. in \ Yt-17 -+ 3'ib of its sales and -+ \%
ol1ts profi 1s ca me lwm ll lllS1cle the Ut< . Approximate ly half ol
Ihi s. or \H%- 2LNo nl Ilw llltal, onginated in 1he US. 1\oreLwe r,
overseas sales share giT\\ · In~m N % in lYH2 tL' -+ 3'}'(1 in \Y87.
Amongs1 Ihe h mu nc "iOl). LWer"ca,.; "a\c<; and pwfit s <1l'L·L~ lln1
IL' r approx 1m<ll ely 2l)uft, ol1h e IlHal hu1 1hc gr<)\\·th 1;; rapid.
/\Llo rclmg 1u h m u ne i\ laga.: mc ... h, l ·c l,~ll st~ it' ' ,,1 11011,1( c ill· ln,..;li
,..;n >wrh nwml>n , !l/ 1h.- AniLTI! un flll .\1111'.'-' ( <111/CI't'll! c. '"IJ,>s,·
I'CVCI!l /C\ t/VCI LI,I(C 'f>.)f>Ll ll ll l/ i< lll t l Vt'<ll. ,I; I'!' \I' 1/C 1/ :2tl•:,, L1111111di ,·/ij'
fmni llJH / en /L)Hh - 'i Cl ll l!'\ /us cc1 ri1t111 rl1r ( 1\tit'[' IU,..;c ..
European Companies' Markets by Area
Oth<'r
E .l~( .-\SI:l
\\·cstcrn
Europe
.. Timlitional' ad \n tising agencies ha\T been unable to address
these opportuni ties ln the 1960's and 1970's the Pado\ ian
response of ad\·e ni si ng agencies to an ad\Trtising problem
\l'l'uld be w spend more money on telc\·ision Partly because
1hey hc !Ic\·ed ii 10 he the ciKajX~I and 1hcrdorc most ctledi\·e
\\·ay uf addressing the problem. but aiSL1 because it \\.,bin
their vested interest to do so. Television ad\·ertising \\·as the
most profi tabl e fonn of advertising for the agency. and their
remuneration system based on a percentage of billings
ensured this \\'O uld be so part icularly \\·hen med ia in Oat ion so
rapidly outdistanced the consumer price index
ln addition "traditional" advertising agencies failed to give non-
med ia advertising the necessary status and to manage these
businesses in a di ffe re nt l~r autonomous \\·ay thus recognismg
their diffcre n1 nature. j ust as Theodore Le\·iu clescribecl the
marketing myopia of the railroad compan ies in the United
Kingdom in the 19th cenrury, "hccallsc chcv usswncd rhL'II!Sclt·cs
eo /1c 111 the rai lroad h1hincss rari1LT clwn 111 rhc crtiiiSJl''nurl,'ll
lmsill!'SS ·· SL~ an ad\·enising agency mm· he \\TL~ng in assuming
it is only in media advertising rat her 1han in markc1ing se1YIL'CS
The real opp,,nun ity is to clemlmsmne 10 clients an ahili1\ IL'
heCL111lCa true busi ness part ner Firs1k h\· dcvck,pmg a
funda memalunders1andmg d the c!Iclll s' siraiL'i!-IL' markL·ung
L'h]eci i\·es. Sccundly. lw aLh'1smg !11 ~\1 c!Ien i L~n 1he he si \\a\~
Lll spending 1hc1r m;trkL·tmg se iY 1ce~ budget tL~ .lchiL'\T ii1L'sl'
L~ hj l'C t ive s IhrL~ Ugh hL1ih mcc\ ia ancl11L1!1 -11ll'di<l ~eJ'\'ll'C~ (and
\\ 'PP (~roup piL )\
 The Case for Investment in the Marketing Services Indust1y
Continued

some of which may not be in-house); and finall y by creati ve 198 1- 2. a nd to 6 3qo 111 hou s chL'Ic.b ,,. Jt h cable . There is also
execution in the most effective and distinctive way in the evide n ce to s u ggest that th e qua !J t\· d th e re mainingaudien
chosen marketing service. h as eroded a s "·e ll. A lth o u g h n c t \\.Ll rk te le , ·is io n will probabl;
a lways be th e b est med 1um kll· rea c hing t h e la rgest num ber
Even the megamergers of advertising agencies will present
p eop le in th e qu ic k es t \\·ay. Jt 1s n o lo n ge r a q u es ti o n of cost
significant opportunities for clients, as rates of inflation rise
p e r th o u sa nd- m o re a que s t io n of cos t per q ualifie d buyer.ln
again and as clients realise and recognise their benefits in
the case o f m agaz in e s . Jt IS no longe r a questio n o f the bigger
terms of added resources and geographical coverage. These
th e c irc ul a tio n th e b e tt e r. but m o re a q u es tio n o f contained
will particularly be felt in the media area. As Alvin
c irc ul a tio n Sing le so urc e da ta fr o m N ie lse n . A rb itron, SMRB
Achenbaum said recently, 1\gencies have spen t so much time
a nd MRI, toge th e r " ·i th comp ut eris ed s toc k contro l, d eliver
talking about creativity, they've not done the job they should have
targeted sa les info rm at io n
with media~ Already, the "megamerged" agencies are starting to
examine media-buying benefits that may be developed for
clients in Europe and Australia and developing relationships Media Price Inflatio n ve rs us Re ta il Price Index
I 978-88 (es tim a te d )
with new media networks that may offer clients more
effective media alternatives.
index 197H - lOO

Long-term factors behind non-media advertising growth

400
Although the impact of these short-term factors may
diminish, there are two major long-term factors that are 300
unlikely to diminish and may well increase in importance.

Advertising is difficult to measure
Firstly, the measurement of advertising and promotional
expenditure has always been difficult. The remark attributed
originall y to the Chairman of Unilever "] )1.1 I h <;ouH t'\ D t·fwrrrrw rll n/ l:lllf'l••\"11·•1/
.. , ' ·' ow waste alf my
advertl51ng budget, bttt Idon1hnow which h 11• .
a ~ . 15 a common
com?\a\nt, but there have 'ne n very few technological
develo?m nts that have enabled advertisers to effectively
measure the results of their expenditure. With the falling cost
of computer processing it has become easier to measure the
impact of self-liquidating (pay for themselves through
increased sales) sales promotion or direct marketing
techniques.
This problem has been emphasised by the increasing cost per
thousand of television as media rates have risen faster than
the rate of inflation and network audiences have declined.
In the first half of 1987, as a result of both these trends, the
effective cost of television rose by over 25% on both sides of
the Atlantic. The erosion of the net work audience has been
even greater where cable TV is an alternative In J986-7, the
combined network share had fa ll en to 72% from 81 % in
200
100
LK Japa n \'-./c 5t Crt:>nnany France
1 \ \.'a /ur 1 h, mlr '• "l ( , •m r •~l • l \ \ ~ ." /.IH , , ~,- \ , , ., J ,.~ 1l ,.,.,J ,'I "h'' ll
The un ce rta inties c rea ted b y thi s tre nd a re re fl ec te d in the
variation of spe nding pa t tern s h y major tele\· is io n a d vertise
in the United States durin g 1987. a n d th e in c reasing u se of
alternative n e tworks suc h a s Fo x o r Kat z 's non-wire d
network.
Furth ermore, con cern s ove r th e costs o f adve rtis ing a re
increasingly prevale nt Di c k j o hn son . Ma r keti n g Services
Director o f Proc te r & Ga m b le . wa rn e d in 1986 th a t "high
airtime cos ts are a mi/L<;tnne c.wnund rh c nech ()/British industntln
February 1988 th e U nit ed K m gdom ·s fift e e n la rgest te levisi n
ad ve rtisers s ubsc ribe d toas t ud y e nu tl e d ·Th e Econo mics of
Televis io n Adverti s ing · w h1 c h '" ill a s sess th e rea l fin a n c ia l
effects of infl a ted adve rt Js m g c n,; ts ,, n th e L1nit e d Kingdom
econo m y in pa rt 1c u lar 1n re ia t 1' 'll tl) lllllL'\·a t 1Ll i1 a nd n e w
produc t d eve lopment . CLJ!ll petit ILHl a nd g rl'\\ ·t h p e rfo rma n e.

32 WPP Grour plc

 Top Ten US Network TV Advertisers US Television Advertising Dollars 1983-88
"87 network % chg Local and spot Networks
Ad vc rll se r TV spcndmg from '86
S Bn
I . Proc ter & Gamble 5377 .55 1.800 - 164%
30
2. Phdtp Mo rns 533 1.936.200 - 3.0%
3. Ge ne ral Mot o rs 5272.953.100 - 16 8%
4. Kell ogg 5238.0 16.900 -432% 20

5. McDonald 's 5 21 6.067. ~ 00 - 11.9%

6. U nli evc r 52 11.923.000 - ~ . 7% 10
7 Rj R Nabtsco 5209.777.300 - H7'lo
8. Anhcuser·Busc h 5 186.9H.700 -5.3% 0
9 j ohnson &: j ohnson s 18 1.998.900 - 108% 83 84 85 86 87 88
(estimated)
I 0 . Am eri can H ome Prod ucts 5 1 8 1.~ 99.400 - 2.2%
Sou ra : Donaldson, Lufo m[.... jenrwc Sccun!tCS Corp
Soura BroadcaH Advo rt.'> O ) R(porB

TV viewers attitudes are changing. As Michael Green, Video Recorders - Consumer Offtake
Chairman and Chief Executive of Car! ton Communications, Volume
ODD's
puts it in his 1987 Annual Report, "the viewer wants more choice.
MaJOr tec hnological advantages and programming mahe that 2.500
choice feasible and affordable The political climate mahes it lihely."
2,000
Research by RSGB in 1987 indicates the following
1.500
• Very significant numbers of viewers find there are times
when there is nothing on television w hich they want to watch ~~
CO'-J
1,000

• Given the option of more viewing at the right price the

500
viewer wants more choice. 81 82 83 84 85 86 87

*Reduced sales in 1984 show extreme price sensitivity

• The reduced effective costs of television sets and
Soura:Carhon Commumcac10ns PLC
consequent growth of two or three television households
means increasing fragmentation of television viewing.
According to Business Week in December 1987, there are even
• Video tape recorders give viewers the opportunity to time indications that US network television attitudes are changing
shift and buy and rent materiaL as NBC negotiates programming deals with Disney and
Turner Broadcasting, in face of protests from their own
• Certain homes alread y have access to satellite and cable
network affiliated stations.
channels and these regularl y attract higher audiences than
BBC or ITV.

The impact of these trends has had a significant effect on

viewing habits According to a survey by RD Percy & Co in
Ne w York in March 1988, the average household "flips ", "zips"
or "zaps" once every 3 minutes 26 seconds. Moreover, the
highest mcom e ho useholds are the heaviest zappers
$75,000 + house holds zap once every 2 minutes 42 seconds.

WPP Gro up plc 33

 The Case for Investment in the Marketing Services Indus t1y
Continued

The New European Broadcasting Environment
Channels under discussion authonzrd
Channels iniliated since 1985
• Proposed DBS channels
As1ra medium-powered sa1elli.e- 16 channels
eServices ini1ia1ied/aU1horized since 1987
an oldc-wnrldc ccah ,·cnccr:.fu/'£ 1111 "'•· n!dl!lt/llt"llll.tTS were sw-p1iscd
by ch is. Cuscmm-rs Wlt,l!,l ll 1~ , ·, !me {- C·,,lniU il I• ' •'XJllTinll'l!l with
differenl pnfwncs for us n,.,,. -,nU.\!, I< Ill! him''''" · uir~fi·t.·shcn e i~
differenc Europea n pt.·•'!' lc., hun· •1111 1<" ,l,fl,-r,·nc sc nst.· ~ ~(s lllcll.
Colga le- Palnwli"cFiwld 11!,· D1 1lt /1 c,' J,,. E1 u·,'/''. ~ lllcilllt."SI (wisest,)

European satellite channels

spenders on 10ochpascc. Sou .;,·1/s cllt·nl eh,· _.;on,,· hruwl LIS nnywherc:
Arts
CNN else in Europe. hw ac half lht· J'nt,· le l!,h c},,· _,dill<' t"al'ily -saving
Childn:ru
Filmnel
LifeSiyle
power bw uses a lmvcr-LilWli c\ · J,Lis,· niui<TI£11 The Due eh lil1c the
~{TV Europe
Premicre lower price and do lltJI sccn1 conwul t 1/ cl!<".\. Jun ·e ll• 'l iccc/) the coarse-
RA i l
RTL Plus
Sa! I
ness. By cono·asl, C iha - Gn,~:,\ : u Sm ss d it"lllicul.-;.finn. c!wught that
Screc nspon
Superclia nncl price was the chic( considLTallnn.for dtS I<'IlltTS I'Itv ing ils cextile
Shy
Trleclub dyes. When ic ashcd che111 . chev S£1ld chuc t(lllilltY \\ 'LIS lll!'rt.· important"
TVS
World ne/
3Sa!
Even one of the g lo bal leaders h as its L"L'llL"crn . Richard
Halpem , Direc tor o f Ad ve rti s ing Research fo r C oca-Cola
Company (pe rh a ps the ep it o m e tlf g k1bal m arke ting). said in
Novem ber 1987, "Nalimwlis ni '-' hv ll <' lllt"W!S tic({(/. \Vt.· arc not
heading £awards chc glohul , · iflu,~:,t· . \-\le un· lltll unvw herc near it."
Sourrc Carlton Communicalions PLC
As j ames Ta ppan, Vice C hairma n tl f Cc neral Foods
Market Fragmentation Corporatio n, said a t a rece m !AA Ct, nkiTll LT. ·tJIC Uniccd

Secondly, whilst it has recently become voguish, and perhaps
self-serving for global service groups to espouse and
popularise global marketing (global concepts are not new,
even global manufacturing concepts were developed in the
earl y 20th Century when Lever Brothers built copies of Port
Sunlight manufacturing faciliti es around the world), it may
not be in the total interest of their clients to view the world as
the Financial Times recently put it "as a global village and oy to
sell the same product in every country with the same marketing
message. That might work for some products such as the Sony
Walkman , but in food the idea was 'globaloney'."
The Economist was equally direct, "Europe is still far from being
one homogeneous market, despite the theories of academics like
Mr Theodore Levitl of the Harvard Business Sc hool, who once
States is no lnngaa nwss nwrllt"l ll'i!tTl' /'''''J'It· (ill' WILl dranh the
same producLs, il is a socictv cvnh-ui,t; 1111 <' u IHmlhtT of complc.x
regional and social preferences le wi llnlcUil 11Jarl1eting, tn hundreds.
even thousa nds, o( diflercn l t"tlllSllllltT IV Jh"S - we will have to thinll
big and act small ... it is ohnul llldri<ellll,l!, IOil tHI-Imditional
audiences 1h mugh non -lrud il!t> nul , huii iit"is.·· l! ma y well be that
as j ohn A Quelch a nd Edward) Ht,ff \\TtltC in 1986 in the
Harvard Busin ess Rcv ie-..,·. · t~cspilc cl~t· ,, j" ·i•'liS econon1ics and
efficiencies they (mw·hcltTs) t" n1.dd ,I!, <I ll! w11 h u slwlLlurd product
and program , many managas few tl1ul ,l!, l£,)1ulnl cll heling, as
popularlyde(in cd is coo excrcnie 1,1 }J,· I''d' 11<<11. The hig issuctocl1y
Ls not whecher to go glohal hw how ((' ldlitll ch c ,~:,lohul co ncept to_frc
eac h business."
Th e approac h to be adopt ed w dl depend tlll the nature of

proclaimed the world to be one ma~·he t in which clever companies each company's bus in ess functl t' n s. 11 s prtldut"l . 1he elem ents

could sell the same thing in the same way eve1ywhere
It isn't, and they can't Marketers of deodorants in Ew·ope have
discovered that Spanish women are much mm·e inclined to shave
their armpits than West Cenna n ones. Th e British are unique
among Europeans in liking to have their televi.sion sets wrapped in
of its marketing mi x, a nd !Ill' L.l,Lllll !"l t'S rn wh 1L·h it tlperates.
Thi s app roac h also rell t>t iS the srnit·tur<lir·t·s p,,n sc that can c
made to these stra1eg1L "' " Lll ''> ,\ n,, rdlll g t'' l' rt,fc ssors Banktt
and Ghos halm Iiw Sloa n l'v1a n.tgt' Il1t' lll R,,,.,,.". JLl8 7. m a ny
multi - nar i o n a i L t'lll J~< lll J c-.. .t r c . ··, Jit/ lll l,<C. rh, ·ll I'IL' IIlt"S., lllliiSWlti
nalional ~ uh,tt!wn c' /t<llll ,·uJ ,, ., ,/,·l'• ·,,l,·n, ,. ,,, ,,,/,p,·, 1d,·ncc

34 WPP Group plc

- - - - · - --
towards int erdcpcndcn(c ··From c.lillcrcnt staning points they
are all moving towards a common goal- th e simultaneous
achievement of global efficiency. rcsponsi,-c ness to national
differences and rapid orga nisatiunall earning
Whil st thi s approach may appear hereti cal tl~ th ose who in sist
on taking the \\"ritings of Thcodorc Lc,·itt at face ,·alue. it is
funh er rei nforced by the trend tm,·a rds loca l marketing.
A 1987 Dechen-H ampe survey repo n ed that 56% of
consumer marketers had plan s to impl ement regional
marketing programs in 1988 and th at -+3% of those already
in volved in regional marketing planned to spend more than
20% of their marketing budge ts on local marketing programs
Recem exampl es include:
• Betwee n 1985 and 1987, Frito Lay quadrupled the local
marke ting budgets set aside for it s zone sales n:anagers t'J
all ocate.
• In 1987, Lever Brothers offe red Surf deterge nts onl y i;~
liquid form in th e nonh ern United States \\'here liquid
detergems are more popular and onl y in po,,·dered form in
southern states.
• Airlines now regul arl y rai se the bonus mil eage offered to
frequent fli ers on rout es where their CLm1petitive posit ion is
weak
• The Von s supermarket chain classifies it s stores m to five
groups on the basis of demographic analyses l)f each Lme·s
patrons and adjusts it s pmduct assl~ run e nt s accordingly
• Automobil e manufacturers, pft en in assl~ c i ::niun
regional dealer networks. are c.le, ·e k~ pmg spec ial limited
edition models to cater to regional tastes: target ing direct mail
drops to zip codes wi th demugraphi cs that fit the profil es of
lik ely purchase rs of parti cular models: and adapting media
mixes by region to refl ect th e lifestyles l' l j11\1Spect ive
cusLO mers
Reg1onalt elevision no" · takes 2l1°;" t~ f Ge ;1 eral Fo t~d s
te lev ision and ad venismg budget as l'PI'''sed tl) tNo fi\'C' years
ago As John Que !eh and FrcdcJK :\ \per l'''lllt ,,u t in an articl e
enUl! Pd Ma kmg Ll1ca l ''v1arkellng \\ i.1rk: ·· 111 rh,· f'U -'f hul
marheting has largely been seen as a necessQiy inconvenience,
tllldertal?enfo r defe nsive reasons. Toda)( lwweve1;excellence in local
nwdu:ting is being viewed as a poten tial source of competitive
advantage.' This may become increasingly so as, according to
recent Bureau of Economic Analysis data, after com-erging for
more than 50 years, differences in United States regional
income are widening again. Technological developments "'ill
also help as Universal Product Code data is more widely
developed and used.
In order to address the increasing complexity of these
conflicting views and trends, it has become increasingly
important to be able to develop a framework for analysis of
marketing services problems which can review strategies and
recommend tactical execution on a worldwide basis. It is to
this end that the Group intends to develop and utilise The
Planning Cycle, developed by Stephen King atj. Waiter
Thompson Company in London, to provide a structure and
discipiine across marketing services and geographical
boundaries.
The Planning Cycle
\ \1hcrc arc we?
• \\'h,u ts the t'(msumcr buymg S\'St t.'11l~ \ \'ha t ts the pro~..:ess by wh~eh p.::opiL
buy :md li:'L' the hr.md:; m th ~. · ma rk~..·t :'
• \\'ha!.' dL'L=' L'll f brand stand n'mparcd ,, nh c(mlpcmors. 111 th~ market and
\ Vhy arc we there?
• \\'h.u !.H.: t ~. ' rs haw n mmhut Ld t~l tll!r hr.tmfs strL n~t hs .md '''L.lkncsscs:'
\Vhcrc could we be?
with
How could we ge t 1here ?
• \ \ 'h,u ..:h.ll1gr::> 11..' ,,h.u d t'!TlL111:-111 th~..·m.t rk~..·tmg nm. l'l'uld .Khtl'W ('Ut
tlb) CI..-'1\\'L':':'
• \\'h,u ,, dl "t.lrk h~..·:;t. 111 t..:rms ~..'! budg.::t. rLlk tor m,trkcml~ Sl'f\'II,:Ls. t:tr~t'l
).! t\' ll j). urg~..· t rc s p,,n .. ~..·:-. mnh.t dwtr.:t'. ..:rc.llt \t' hncl.m.t rk~..·tmg :'t'f\' tL'6tdt'.l~
,\re we gcHing there?
• :\rl dw nurkt·un~ :<..::n llt'~ rh. 1t \\L' l'r~lJ U(t' h' tlh· -;t• .;tr.llq~lt'=' .tdllt'\'lllg dll'lr
,,hlt'tll\\'!- . .Hllll~ tht' h'ul pl.m ''~1rk111r!~
o Hll\\ ~·.1111\':'t'.lrl"h hdp lb l'' .du.Ht' \'ur ''~.xk .md pi. m dh' nc-..:t ... u!!t':-'
 The Case for Investment in the Marketing Services Indus t1y
Continued

Underlying reasons for growth are demographic and habitual W hi ls t th e econ o m ic a n d suc iLl logica l Ja rgon m ay deter or
The underlying trends behind these shifts in expenditure dra w a yawn , th e pract ica llm p li ca u ons o f th e a n a lysis are
patterns are deeply ingrained in the demographic and sig nifica nt
marketing statistics in the United States and United Kingdom .
In a littl e m o re d e ta il th e a rg um e lll run s as fo ll ows:
It is interesting to consider the impact of demand-side
On th e d e m a nd- s id e three maJOr d e m ograp hi c c h anges are
changes in consumer values and buying behaviour and
di sce mibl e A merica I5 nwlt lriii,'<; - th e m edian age in 1980was
supply-side developments in electronics on how companies
30 and is expec ted to rea c h -+2 b y th e yea r 2050; the baby-
should position themselves as Professor jagdish Seth did in
bust era is re p lac ing th e bab y- boom e ra a nd w ill result in the
his article 'Marketing Megarrends:
30-40 age segm e nts re pl ac ing th e 18 -3-+ age segments as the
biggest bu ye rs; fin a ll y, in c reas in g life ex pec tancy a nd
Jagdish Seth- Marketing Megatrends
d eclining fertilit y rat es w ill ge n e ra te th e la rgest population
Demand-side Supply-side growth in th e 30-45 age seg m c m s a nd seco nd la rges t growth
in th e over 65 age gro u p
Demographic Changes Technological Changes
• Maturing of America • Emergence of the Electromcs Age
• Dual-income households US Ageing Trends 1987-93
• Non-tradi tional households 1
Allributes of Electronics 30

Technology 25

• Low entry -ex it barri ers 20

• Global perspecuve 15 •
• Functionaltnr egrati on

• Enhanced qual ity J 10

i<

Change in Household lifestyles

I 0

Supply Driven Changes

and Values
in Market Place
- !0
• Individualistic lifestyles
• Rfsponstveness to market change
- !5
• Adult-onemated lifestyles "i"i- b-l 65-74 75 nnd
• Ntching and market fragmemauon L ndcr 5 5- 14 1) - 2-\ 2) - H
older
• Time-driven h\estyles
• Smgle vendor. one-stage busmess
l

Marketing M egatrends
Seco ndly, the dual income house holclz s d eveloping - w h ere
• Dual Mass-Consumption • Dominance of Wa ms ove r Needs husband and wi fe a re bo th wage earn e rs, a nd w h e re the
• Personalised Per Capita Consumption • Pluralisuc Speci ality Markets middl e-class w ill d ec lm e a nd b e re pl aced b y the Affluent and
e Role Blurnng for Self-Sufficiency • One Step Hassle-Free Shopping the Ave rage . Thirdl y, no n - 1radllu mu / hou se holds m·e growing -
o Time-Place Umversahty
there has been a s harp m crea se m thi s gw up, a nd the 22% of
I all house ho ld s that we re s mgl e in I LJRL) zs ex p ec ted to increa
Lessons for Corporate Culture
sharply
I Focus on Market 4 Decemrab se the Organ1sauon
2 Comrol your Costs 5 Pracuce Pl uralisuc Philosophy Th ese cha nges w tll res uli 111 th e fu lk) w m g Lh anges in
3 Broaden your Honzons ho usehold lz festylec, a nd , -a lu e-. - uJcii \' Icluu l b ii t" li(cs ty les w h
mo re a nd mo re co ns ump1t <>n w tll h e perSl'na hsed to each
indi vidua l, adu lt -o n e nr uted lifnr\ f.- , - due i l) th e d ecline of
children's prese nce tn 1h e h< >u-.c hc ,J d . c~ nd fm a ll y rirn t·-d li Vell

36 WPP Group plc

lifestyles - where aff1u ence and maturit y will result in time-
poor and money-rich households.
On the suppl y-side th e major tec hn ological change is the
emerge nce of the elec tronics age. This has several unique features
which impact on business. Firstl y. elec tronic tec hnology has
lowered the baniers of enlly and exic and ,,·i ll increase
competi tion. Secondl y, elec tronics is a worldwide tec hnology
which means a company must take a global perspec tive.
Thirdl y, resultant in creased producti vit y gives rise to
increased opportunities for fi.mctional integration and
consequent lower unit cost. Finall y, elec troni cs tec hnology
has not only lowered costs bw also enhanced quality
As on the demand-side, these four attributes of technology are
likely to bring about the following supply-d ri ven changes in
the marke t pl ace. Firstl y, a responsiveness to marl?et changes, as
the time and space distances in market transactions between
buyers and sell ers have been reduced. Secondly, lower entry
and exit barriers, cost-effi cient production and marketing
have encouraged niching strategtcs wi th as a consequence
mass marke ts becoming morefi·agm cnrcd Thirdl y, integration
of business fun ct ions and enh anced qualit y at lower cost will
resul t in a rede fini tion of busin ess to single vendor one-stage
businesses, such that the consumer does not have to make
sepa rate choices.
As a result of th ese dramatic demand -orientated demographic
changes and suppl y-orient ated tec hnologica l changes seve n
megatrends ca n he ident ifi ecl.
• Dual mass-consumption - as afflu ent and ave rage classes
develop, compan ies that specialise in premium products and
services will l"inclthat the growth po tential fort heir products
is enorm ous. At th e sam e tim e companies who offe r mass-
market fun cti onal products and se rvices will find it more and
more difficult to survive
• Personalised per Coptw C:onsuntprt('" - most pwduc ts and
se rvices will he demanded and c nn ~ um ed at a per capita
,·at her than house hold level. Fun her. m m e and nwre pel1ple
wi ll be able to aft(lrd persp nalised rath er th an standardised
product ~
• Role Bluningfor Self-Sufficiency - the old concepts of home-
maker and breadwinner have gone. Marketing campaigns •,vill
have to have universal appeal to men, women and young adults.
• Time-place Universality - it will become increasingly
common to disassociate time and place separations of work,
home and shopping activities.
• Dominance of Wants over Needs- psychological wants v.rill
dominate consumer motivations over physiological needs.
This will result in an increasing need to satisfy psychological
and divergent needs which are more volatile and dynamic.
• Pluralistic Speciality Markets- greater tolerance for
individualism and personalised consumption will result in
pluralism in values, lifestyles and behaviour. In addition the
electronic age pem1its markets to cater to smaller market
segments. Therefore there \vill be increasing attention to
speciality markets, eg, ethnic groups.
• One Stop, Hassle-Free Shopping- as society becomes more
time driven and as marketers broaden their business
definition, consumers \\rill prefer one stop shopping for
products and service.
The fin al conclusions of Professor Seth's analysis are the
lessons of these megatrends for corporate cultures. Firstly,
Fow s on the Markets - offering value to the consumer whilst
not sacrificing profitability and subordinating technology to
customers. Second! )~ Control your Costs - with the lowering of
entry-exit barriers as well as global competition, it v.rill be
necessary to identify cost stntctures separately for each
product - market combination. Thirdly, Broadenyour Horizons
- it will be necessary to understand competitive forces outside
your industry and possibly redefine your business, perhaps.
more broadly than in the past. Fourthly, Decentralise tltc
Organisa tion- the span of control versus its costs encourages
decentralisation, which in turn enables the Corporation to
better focus on the market and thereby become responsive to
changing market wants Finally. Practice PILtmlistic Philosopltv-
no single marketing approach is likely to be sufficient.
because markets are becoming more and more divergem \\rith
\XIPP Group plc 37
 The Case for Investment in the Marketing Services Industry
Continued

respect w wams, needs and buying power. Therefore, a singl e Size and Growth Rat es o f U h: 1\htrkt: t ing ScrYi ccs 1977-86
way of doing business is unlikely w appeal wall market \l n.il. t ". d. l'uh l ~<.. Dm~a
\d.t ril"'llh,: i I '~ .I' I I t..:~·l. u t.•n . . \\.tr kCII!l£
Lhn
se gm ems. ' I 11 11 Lm '\,

I ~HI'l '1'1t' I_II ,, ), I> ,, ,,:-- ],...._, , "') J f 10)

19 Wi ~ -1...! -, -)1' h ,, r~\ \I ~ .' ,, 03
lf the reader finds this gobbledegook daunting or 4/l1
l lJI'\4 - ~ l 't'l ! ·, -~ ) l \ l .' 'I\ I l r, \
incomprehensible, perhaps the implications of such thinking " 4 )L) ()~

IClH J )')r-, , ........ ..

can be brought home more effectively by examining the
-.1 \ \
' \,• ~ ~ ~ -h.V; ()-

IYH2 l I i I I ' ·, ,,' ; .,. -' \ l7l' 19 4

impact these trends have had on retail purchase decisions. I 'IHI 2 ~~ j,,_ '1\ I [,' '- \- ~ ) l l' 33
1\JHLl 2 "if\ Id t~ :-I
The major results from the POPAI/Du Pont Consumer Buying
I I
' _',\' : \-') ") l)L) 15-!
1\JN : I -' l () ~J ~ .l \ I ;, I (~ . 14 I 2nl) IB_
Habits Survey (all American but all , if available, similarly I Y7H J]-..:1 ~~ :- ~ I ' ~ 1·' .' I I c: 2 2 l'l l>l~
reflected in Britain) were as follows: Jl) f f I .l u ~I I I ....... ~
I~ 11. ' -• 17l' 308
"Jt'n ~t: .lr
• ln 1986 over 80% of every dollar spent resulted from In- g l l)\~ lh l.l l l " I) I lh ...\ ' I I1 I
Swre decisions versus 65% in 1977 ye.1r
h \C'

gnm rh r.u\· 1 .. 1 I ~·\ \ d

' ll'H
• In 1986 60% of consumers surveyed bought items they did '\r>J n , ,·, .\ .j.,,.,J/1:,
' "' ., '. ' 1
'
,., ,, '
not set out to buy.
• 16% of consumers entered the store intending w purchase
an item in a certain category, but without a specific brand in
mind.
• Another 5% of consumers switched the brand they pl anned
to buy once they were in the store.
• The three networks combined share of audience at prime-
time has shrunk from 89% in 1978/ 9 tO 73% in \984/ 5.
• In 1985 7l% of women wer worktng versus 39% in 1970.
• 1'ne average supermarket has increased by almost two and
one-half times in size from 13,000 square feet in 1974 to
30,000 sq uare feet in 1985.
• There has been a steady increase in the number of products
on supermarket shelves (now J 5,000-25,000)
• 46% more new products were in troduced to supem1arkets
in 1985 versus 1982; 10,000 new products a year are being
imroduced on supermarket shelves
• 70% of all prod ucts in supermarkets were int roduced since
1975.
• The average length of a shopping trip shrunk from JUSt
under 30 minutes in 1975 to just over 20 minutes in 1985.

1ocomplicate the picture still funher, despite the cl osure or

rationalisation of som home shopping services. Paul Kagan
Assoc1ates estimate that the home shopping industry will
grow to a S2.8 bi llion husin ess hy 1990.

38 WPI' Gr()up plc

The Opportunity - The WPP Group of Companies:
logic and Purpose
The increasing complexit y and geographi c broadening of the
marketplace will result in cliems increasingly focussing on the
effecti veness of their expenditure. and in these marketing
decisions being made funh er up th e organisation. It is this
increasing sophisticati on that \\'ill give an enhanced value-
added opponunity for marketing services companies.
The value-added opportunity ca n be looked at this way in
media advertising- if agenc ies receive 15% commission and
the media the other 85% of clients· adve ni sing expenditure,
improving the yield on the m edia portion by 10% is
equivalem to more than hal f the age ncy's commission. The
need to develop competiti ve brands will all require a better
strategic understanding of cli ems' businesses and more
effective and distinctive crea ti ve breakthroughs and
executions, whe ther in media or non-m edia marketing
services or in different markets or contin ents.
As an example, recem concern at a relative recem slowdown
in direct marketing expe nditures in the United States has
resulted in new innovations such as ''tall~ing" cards predicted
to replace sc ratch cards. Customers run their card through a
point-of- sale scanner which reads the barcode and activates a
voice-synthesis computer chip which tells them what they
have won. Or how about th e new laser p1inter linked to a
computer-dri ve n database that can not onl y personalise every
lin e of a letter, but will produce your handwriting throughout'
Alternatively, the ave rage $260-300 cost of a sales call has
encouraged the use of video casseues costing $7 to $ 17 per video
or the emergence of telemarketing I -900 and 976 numbers in
the US and the 0800 number in the UK
The marketing strategy behind the formation and
development of the WPP Group of companies is in essence
a very simple one.
In fU St about eve ry country in th e wn rld. th ere·s a rapidl y
growing awareness of the need fur companies and L1t hcr enter-
pri ses LO analyse th eir compeuti ve strengths and weaknesses:
to se t clea r strategies: and to exeL·u1e and (XL1111llle th em ,,·irh
accurac y and Jm agmati L11l Th1 s is as true tor gove rnment
departments as it is for commercial concerns. 'Marheting' is no
longer the monopoly of marketing companies. 'Communication'
now means a lot more than media advertising.
The skills required to operate in this way are both rare and
specialised. Few enterprises, however large, will have all the
talent they require 'in-house~ It follows that the demand for
outside services, of the kind traditionally provided by
advertising agencies and design consultants, continues to
grow So, too, does the range of such services - at WPP we
have identified at least five distinct categories.
il's in the nature of specialised service companies to excel in
one such category but seldom if ever in all. The client
company, therefore, is faced vvith the need to choose many
outside partners, of different skills, from a bewildering
number of alternatives; and then ensure that they work
together to a central and commonly agreed strategy.
W ithin the Vl PP Group there are now specialist companies
providing all the marketing service skills required by national
and international clients. These companies are encouraged to
retain their O\vn identities and sharpen their own professional
skills. In many cases, their principals are their founders. Their
businesses and their reputations have been built on their own
talents: and the names of their clients are testimony to the
quality of their service.
For 'vVPP Group companies, membership provides the oppor-
tunity to get to know and work with peer professionals of
differem disciplines - with no loss of commitment to their own.
For clients and potential clients, the WPP Group concept
provides the reassurance of the highest professional standards
- in all skills and disciplines - and the stability that derives
from being part of a large public company. These benefits hold
good whether the client is making use of the talents ofjust
one of the 'vVPP Gtoup companies or of many
If this Group strategy is 1ight for today - and it is - it v.rill serve
an increasingly valuable role for client companies in the
future. The need to co-ordinate and integrate selectively
corporate strategy and communications is becoming widely
recognised (not however. as some argue, in the fom1 of a one-
stop shop or supermarket. or full-service). Clients are
\VPP Gruup plc 39
 The Case for Investment in the Marketing Services Industry
Continued

restructuring and reorganising themselves to this end - there

are many benefits and efficiencies to be gained. And they will
be looking for service companies who, \vith no loss of
specialist capability, can work harmoniously together to a
common brief and with shared understanding. WPP Group
companies will be supremely well placed to provide such a
managed and multi-disciplinary service.

As Bruce Mowery, Advertising Manager of Apple Computers,

said in October 1987, "I've yet to see anybody really integrate these
functions in ways that are truly meaningfUl and represent a true
mega-agency~

"Full Service" versus "Integrated Selected Service"

A Monopolising Process An Optirnising Process

One-stop shopping: A coherent range:
menu of separate items communication beliefs shared
(and evolving) across WPP Group
Clients initiative Collaborative
Cost effectiveness Profit maxirnisation
Trial and error Monitoring, testing,
comparing, assessing:
Switching Controlling
Reactive: Anticipative:
Defensive and conventional Aggressive and innovative
Product-orientated Market-orientated
(a "factory") (consumers' needs)

40 WPP Group plc

 Multi-National Awards

During the last year, WPP Group companies have won over
250 major awards throughout the world, including those
listed here - over l award for every official working day.

USA&Canada
5 Gold Awards - Oscar Mayer,
PepsiCo, Nestle, Warner-
Lambert, Ford
1987 EFFIE Awards
6 First Places - Nestle,
Miller Brewing Co, Kodak,
2 Awards of Excellence -
Quaker Oats, United
Carling/Foster's, Wa rner-
Foundation,
Lambert
US Marin e Corp.
Best 30 Second Commercial -
Advertising Ages Best Spots
Smith & Nephew
of1987
3 Gold Awards - Quaker Oats,
Gold Medal - Carling/Foster's
Kodak, PepsiCo
1987 Internatio nal Rorlio
International TV & Film
Festivol of New Yorh
Festival of New York
1 Gold Awards - McDonnell-
Douglas, Quaker Oats, Burger
King, Eckerd Drugs, Goodyear,
United Foundation, US Marine
Corp.
Award for Outstanding
Creati vity- Lever
Mobius Awards
2 Gold Awards - Quaker Oats,
Miller Brewi ng
London International
Advertising Festival
l Clio Award- Berkely
Award of Excellence - PepsiCo
1988 Andy Awards
First Place- Bloomingdale's,
Boca Ratan
ISP! NRMA Awards
3 First Places- Bloomi ngdale's,
Boca Raton, Woodward &
Lot hrop, FAO Schwarz
Chain Store Age Executive -
Store of the Year
First Place- Store Planning
NA DI A nnual Display Awards
Gold Award - Woodward &
Lothrop
Inspiration Press -Store of the
World
First Place - Bloorningdale's
Boca Raton
ISP!NASFM Award
1988 Hollywood illA
Gold - Smith & Nephew
1988 BESSIES
Latin America
Agency of the Yea r- JWT Brazil
Brazilian Association of
Advertising Agencies
Agency of the Year - JWT Rio
Adman of the Year - Lee Paviio
Ad of the Year - Kodak
Promoti onal Event of the Yea r -
PepsiCo
l4 Gold Medals - Fleischman &
Royal, Esso, Citibank, De Beers,
Kodak, GiroOex, Rio Grafi ca
Advertising Columnists Awards
Age ncy of the Year - JWT
Client of the Year - PepsiCo
Promotional Materi al of the Year
- Citi bank
Promotional Campaign of th e
Year - PepsiCo
9 Gold Medals- PepsiCo, Esso.
De Beers, Citibank, Koc\ak
Braz ilian Festival of Promotion -
Packaging and Des ign
5 Gold Med als - Koda k, Phdt ps
Brazilian Festival of Adve rtising
Production
Gold Medal - Esso
New Yor/1 Festival
4 First Pri zes - IB M. C ide rc Bio
Bio, Apurnanqu e Sho pping
Centre, Korall Deterge nt
National Press and
Magazin e Advertising Creative
Awards Chile
Euro pe
Gold C rown Awa rd- Mo th er
Teresa campaign
Danish Magazine and
Press Board
Gold Medal- j asala, Foliglas
San Sebastian Film Festival
2 And y Awards- Platin , Am stel
Advertising Club of N e w Yorll
Di ploma - ICL
State Award Austrian
Advertising
2 First Pri zes - Perafi 10. Beheca r
Spanish State Te levis ion Award
Best Spot of th e Year -
Lever Broth ers
4 First Prizes - PepstC.o .
Lusit ania Vida , Phi ltps.
Lever Broth ers
Spanish State Radio AwanLs
Gold Award - Persil
(Lever Brothers l
Creative Circle
Gold Awa rd - KttKa t
rRowntree Mackt nt o ... h l
Irish Film Festival
C c1lcl \ lcda l - i\ !anchester
E,·c ning Nc\\'s
Int c nwtiorwl Film & TV
Festival ofNe w Yorh
2 C lio r\\\·ards - Ford. De Beers
Go ld \!eel a! - Le,·er Brothers
C ampaign Pr·ess Awards
A"·ard or i\ !crit -BP
1987 ISP R e taile r Cat egory
Sih·cr Star - Fabcrgc
lnstilllt e ofPaclwging
Ac.lc)l the \car - De Beers
1987 Pegasus Awards
2 nd P ri ze~ \VPP Group plc
Sar-e ma Pr-ess (Publish ers)
R e port & Accounts
Hig hl y Co mm ended - \VPP
G ro up plc
"Business " Ammal Repo1·ts
Bron ze Awa rd - Martin Sorrel\
Th e Wall Str·ee t Trm1script
Asia-Pacifi.c
I C lio Awa rd - Lever & Kitchen
Best o f Catego ry - Smith Family
A ustr-alian Writers and Art
Dir-ectors Awar·d
C c1 ld Med a l - Rc:"L' kitt & Colman
lrlt e nwtional Adve nising
Fe stival of New Yod1
7 c;,,Jd /\\\ · ar d ~ - Llni lcver. IB t\ !
1987 Philippines Adve rtising
Congress
T \ ' ( <>lll lllc' rc·t,d c) l the Yea r
" IlL' II
1 ( ,, >id :\ \\ .u·d ,., - IB i\ I. :)tm c
i lld .' \ . '-,, tk lll
Philippines C rnHi ve G uild

42 WPP Group plc

 Strategic Marketing Services

Henley Ccnrre for Fo1·ecasring Limired

Th e Henle,· C,· nt r,··s pwlc s~ iL~nal staff of 24 provide a range of consultancy and
sy ndi cat ed ,;,-r,·tl·cs ~me\ publicatiuns focused on the future.
Hen ley",; L':-;pc ni sc uwcb ecLmomics and econometric techniques, social research,
markcun g and u~ mputcr L'pcrati ons.
Syndicuccl ~en·tces m cluck Planning for Social Change, Measures of Health and Sigma.
C:lm sultan c,· ,;L-r,·ices include tLltal etwironmem analys is, econometric applications,
e:-;pc n ,;\·stc nb and concept ~me\ brand auditing.
In it s c\,~ ,;c,; t c,,l\aburations \Yith retainer clients the Centre contributes at all fi ve levels of
the SILH cgic planning pr,,ccs,; forecastin g market prospects in relation to client
rc s c, ur ce~: L'St~ thlt ~ hmg CL~rpL~r<\le obJclli\·es: identifying and prioritising medium term
st ratcgic ' 'Ptlcllb and product clevc\clpmem: assessing shorter term tactical activity;
monit L'rin .~ pnfcmnancc in the cont c:\t of the evoking market environment.

1 ~1 IJ) l 't I\ I\ I l l llARRIE ST.-1:-.JIFORD

Principals:
J\, ,h ·lyrrcl\ t\ luntl,>.:,tll,>.:, lltrt'< 1<'1
l'a ul l 1rm cn'd {)11 ·<', Uli <'/ b t>ntllll ft s Partial Client List:
BalTIC \ und c1 rd 1111·c, 1,,,.,,, Asda
i\ltllllt'flll,>.:, {- JJilflllllll,>.:, Boors
)c,hn R1gg I lii.t't ltli <'/ p,,/it'\ Ant~h ·st.' British Airways
[)a\·tcl [Ja rt cln l )ll·c'< ltll tl/ British Telecom
r\l'f'l lttl \, ,, ,,i/ l~c'\t'lfl't li Bunon Group
( h1 ·h hmnc \, , lliit'<i<'l •'/h<'lltll ll<'irh, Hillier Parker
I )a,·Jd l'a,.,,.,c, · I l1n·, r,,, ,,, iviidlancl Bank
/ ' 11ldll! t ' \c , ( t 1111fldll\ "l \ lt '/tl l \ Shell
. . . . lllhl11 : \\ hllll {)lit '( /tll () / ,\ 't'\\ SpL1rlS Lll UilCil
I11' >til l< I I), ·, ,·/, '1'111< '111 \fll<lh ·, Wh itbread

WPP Gro up plc 43

 Parti al C li e nt L ist
De 13ccr ~

Media Advertising Ford

IB\ 1
~ c l lc1!Z_~
~ ,, d.lk

~ r Jft

\:c s tl c
Pc ps 1C:,,
QuakL·1· l),n,
R.j Rcyn,,kb
Ro le:-.:
Ln Ji c ,·cr
\ \ ·a rn n- L 11 11 hL-rt

]. Waiter Thompson Company

jV/T is one of the world's largest advertising agencies. It has $3.3 bi llion in bi ll ings,
wit h 107 full -service offices in 46 countries. jWT is the leading age ncy brand in
handli ng wo rldwide clients. Over 90 multinational clients account for approx imately
70% of JWT's billings.JWT's leadershi p stems from its integrated worldwide netwo rk.
its local agency strength in each country. its unique strategic planning system.
and its creative reputation for effective, distincti ve adve rtising.

Principals:
Bun Manning ChaJm1m1 and ChiefExew live Officer f. ~
:;::: ~
Ron Burns Pm 1dent and CEO,)WT Canada ""
:::; ::f.
Michael Cooper-b•ans President,)WT Europe -r ~
~
I'
Edward A Haymes Exew tive Vice p,·esident, Finance and Admin istration <

j ames B. Patterson Chaimwn and CEO,.JWT USA

c. :;:::

\>\' Lee Preschel C/winncm,.JIVT Latin Amnica cmd Asia-Pacific "'

Peter A Sch\\'eJLzer Executive Vice p,·esJdenl, General Ma li a)!p:.JWT Deu·o11
Donald FThompson Prc SJdcnt,j \\'T Asw-Paci{ic and So w h A{ric a
\>\'m c_ Thompson jr Excc ulii'C Vice Prcs JdCiil. JV/ulli -natiollal Au ow1t.\ and f3u , II1L'" I )n•c/, '1" 11 ''1/

-14 \\'1'1' GJ'tl Up pk

 Media Advertising

]. Waiter Thompson USA

Comptising 6 full-service and 25 field offices with a unique

regional broadcast buying resource,JWT USA is one of
America's top 10 agencies. Over the past 10 years,]WT has
created America's best-liked, best-remembered advertising -
more than twice as many campaigns as the nearest
competitor, according to Video Storyboard's survey of
30,000 consumers. And for 2 years running,]WT has
received more EFFIE Awards for effective advertising from
the American Marketing Association than any other agency

'>l.JQ.<..,.IU~,.~ . , . ~ft
....
~.. ~. ~

_,..,.
n.:--.... IWJfia4CT~:tllr-.a
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..

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:"-r~-r:.:::·--,m ·
"""-
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The new Ford Probe GT.

A performance you won't target.

Principals: Partial Client List:

james B. Patterson Chairman Ford
and Chief Executive Officer Health & Tennis Corp.
Stephen G. Bowen.]r. President Kellogg
j effrey L White Kodak
General Manager, Atlanta Kraft
Alan Webb Lever Brothers
General Manager; Chicago Miller Brewing
Peter A. Schweitzer Nestle
General Manager, Detroit OscarMayer
james K. Agnew General Quaker Oats
Manage1; Los Angeles US Splint
james R Heekin Ill General Twentieth Century Fox
z z Manage1; New Yorl< US Marine Corps
0 "-'
' f '>
3:
"' G William M Lane General Warner-Lambert
~ "'
~
"-
> Ma nager, San Francisco
.r.
u.J ""f-.r
:::;:
:=;_

WPP Group plc 45

Media Advertising
. t U st:
Parti al C I1e n
Ba,; kin Ro bbin S
c:,111 ,lc.i <li r d.
h-Po n s
C h csc hroug
, c\·
l l ya tt Rcg el ·
h~ c ll o~~
!(raft
\ Ltt tcl
· 1i teco111
~on h c rn c
PcpsiCo
Rj R :--- t;tcDon <Jld
'-chc nlc y
SL·lJl l

Lin i\ c \·cr
\ \"arncr- L,l. 111 bc rt

Ca na c/(1
). wa it er Thompson

/
/ ""
""- -:;;:
~

,:
;2.
:;:
~

/.
;:::
/

By several measures, jWT is Canada's leading advenising agency, -;;

employing nearl y 400 people in Toronto, Montreal and Vancouver.
Their reputation for being "most professional" is matched by a high "' <
;;:
~

-
standard for their creative product.ln l987,JWT Canada was rated
third in the world for creativity among al\ agencies.

-
;;:
/
7
Principals:
~ ;;:
Ron Burns President and CEO,JWT Canada
Mar\ene Hore Executive Vice President, Vice Chainnan and
Na tional Creative Director
Paul Mead Executive Vice President, Chief Financial and
Administrative Officer
Anc\ y Krupski Vice President, General Managet; Toronto
Norman Rigg Vice President, General Manager, )WT Direct
Communications Group
Dan iel Melchers Ge neml Managet; Montreal
George Clements Vice President, Na tional DireclOr of Research and
Strategic Planning
George Semple Vice President, National Media Director
Graham Catchlove Vice Pres ident, General Manage r, Van couver

46 WPP Group plc

 Media Advertising

JWT Europe. \\' ith headquart ers 111 LLlliLk'n . i,; ;l cl,,sc h- int egrat ed net\\'ork of 23 ful l service advertising
age ncies se r ; icing local and int ern ati,,n;d L·li cnt s 111 IC1 L.L,Lilltri cs. 1987 \ \ '<IS an c:xeeptional year with new
clients and addit iLm al ass ignm ent ,; fr,lm L':\i:>tmg client s L·,, ntri buting to substantial growth in the region.
Un ity of purpose. clecli e<Hi ll\1 tL' <lCCL'lllPii,;hment. and great pride in the compan\' are the enclllli ng factors
that have con tribut cclt (l ,,ur n m ti nued ,; uu :e,;,; in Eur,,pc.

). Wait er Th ompson Europe

\
Partial Client Lis t: 11 1\1
Principals:
• I !K t \I'
Bacardi tvlichael Cooper-Evans
Benetro n President, E11 mpc
De Beers David Campbeii-Hanis Am1 Dilator
Ke ll ogg Charles friend Arc·a Dirt'clol·
Koclak Burkhard Sch\\'arz Area Dir.:ctor
Kraft
Nestl e
Phi li ps
Rj Reynolcls
Rolex
Un il eve r
Wa rner-Lam ben
 Media Advertising

]. Wait er Thompson
Asia-Pacific

D0 :-.: .-\ 1 f) I· "J H O~ IPSO:\

Principals:
W Lee Preschel Cha imwn of
Latin America and Asia- Pacific
Donald F Thompson Pres ident of
Asia-Pacific and South Africa

Results just ahead.

11.-fiN -t•'l•••olhr n...,l !u
.....,,h.- i- a 1~ ..... ,..,.IJ., , jli\1.
5-8256628
V. I" olo 1 n.. ull· -l;u\ -. it.l o
"" 111\1 \ olllu·i... IJ J.-aiN !
JWTs 23 offi ces in Asia-Pacifi c
generated record growth and
profitability in 1987 A decade of
past investment and new offi ce
openings is now paying off fo r
the Company with stro ng
growth throughout Asia. Th e
trade press laudedj WT and its
affiliates as bei ng the fastest
growing agency in Hong Kong,
Singapore, Th ail and, Indonesia,
and Indi a JWT's Chin a busin ess
doubl ed in 1987, and Direc t
Marketing capabi lity was
enhanced in Hong Kong,
Malaysia and Australia.

Partial Client List

Hyatt Regency
IBM
ICl
Kellogg
Kodak
Lufthansa
Nestle
PepsiCo
RJR Nabisco
SC j ohnson
Shell
Unilever
Warner-Lambert

48 WPP Gro up pi
 Media Advertising

]. Waiter Thompson
Latin America

\ \ ' LEE PR E ~ CI I E I

Principals:
W Lee Preschel Chainnan of
Latin Amflica and Asia-Pacific
jarbas Milani lntemational Vice
President, Finances and
Administration
Andy Fenning Vice President,
Director ofStrategic Planning

jWT is the leading advertising

agency in Latin America,
operating in 17 countries and
servicing alljWT multinational
clients as well as major local
advertisers. Continuous growth
and profitability in recent years
despite widespread economic
crises attest toJWT's
professional strengths. Unique
strategic planning disciplines,
together with many specialist
communication skills (sales
promotion, merchandising,
special events, P.R, direct
marketing) offer advertisers the
most complete communication
service in the region.

PHI LIP ~ CHI LENA ~ A

Partial Client List:
De Beers
Esso
Ford
j ohnson &: j ohnson
Kellogg
Kodak
Kraft
Nestle
PepsiCo
Philips
RJR Nabisco
SCjohnson
Unilever
Warner-Lamben \.)

zzz
!;:!
~
z
<

WPP Group plc 49

 Media Advertising

Lord, Geller, Federico, Einstein, Ine

LGFE, celebrating its 21st

anniversary, has enjoyed These aren't ordinary bunernics.This isn't o rdinary cognac.

consistent growth as a fu ll-

service advertising agency.
The agency prides itself on
serving people and products it
believes in, and its advertising
has won consistent acclaim in
the industry
The agency's annual billings
are $230 million. The
company's services include
complete account, research and
media capabilities, and its
creative department has been
the driving force behind its
reputation as a "premium brand"
advertising agency.

pdnce·
LET THE GAMI'J ISillf-

Principals:
No rm a n Gell e r C hairman
c;e n e FeJ e n cn Vice C ha innan
j Wi llt arn Wa rde ll Pn:s iclcnl
Agt ( .la r k t:. \Tt VP Managi ng
I )n·n l <l l . ( .1·cu t1 v<· Snvicc~
I
Ar,/( 111 /i J(

50 WPP Group plc

 BIG WEEK
AT THE BIG BOARD

:!::~~.;::.;w~·;-.:!;~;.'~4 · ~a:l':"~- ......•,!:;~- · -r.. 1.,-..t.., ,....t..... ~t..l'ld'oro-···lo • ~o"r.-.;t.o

o... .nc.. .,.,.._., .. _. ., , ,,~.t \ ,... .:. ... one-_
\lllt\.l - ... t.-lfarc-\.o- ' '1i[tll- · o ..,J,n .-~·-~~-::.:=.::ll-.::...~.:~-o!o--....-.
. . . ·.: ::~::r;;.:.."7.'"~::..7.::...~.....-.;-::t.:;::-"'
.... ,_ . .. ... . r.. . .. .
u.. ~ "-·...a... t
n-.
:...~;:.~.:__~~~-::itM:!.:~~;_~
l lu. 1 ,_.c .. -.!l .... t-J...u-.
'f"' U. OD thr ,.....Jroo ......, lo.
c .. n.ut.:...c ... ..-.~ ....... .-..~ ' ·-- -t.ot ....-v ... ooi!,.ll\\l t.., ..-..... __ ~ ..., . .... ..... .._
11U r -.!lran""' ' ~-~· · -t-C .. '1i[tll f.t- •·nha.o.lt!T ~-.-:.::.:.~~.~.i~~~~~~..,_....._ .. "--..''"""'
rc;t>o - tww-r. ~ "f'U o! U r "Cf"-.- .t .'1' ,.. u .. ~ ,. ,1,, • • .,, .... 1).. ~- • -~t. ....... t - .... b.

IBM "llu· Bi~cr Pk tu n:

WHATIFYOUR
NAME IS EVER!'
Is it time
to teach an old la\\·
Jle\\'tricks?

_ _
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.. ... ,_..._
_................
_...,
""_
__. _. _. _...._-
.-

:. .===·=::.:=.::::
==.:::.::~~..:=
---·--·----
ANDYOU'VE NEVER
WON WIMBLEDON?
......,.., . . . ..... ,..... ......... . . . ... . ....,
, ........... ....... ... . , .. . .....
-
_ ,.. . ... .... ...... , _
~o
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.......... . !w-...,.,.o;....>OI • ... -
..... ... _ "'\A."' -..-,_..........
bo iD to).

2~~~~~~;,,, ~~i~1.¥~'
Youn, somebody at Dean Witter

Partial Client List:

Chemical Bank
Dean Witter Reynolds
IBM
New York Stock Exchange
Prince Manufacturing
Schieffelin & Company
Wall Street journal

\VPP Group plc ')\

 Public Relations

Hill and Know/ton.

Partial Client List: Tl11· l h "H Pt· f ':' ICtlttlllllllfl{

ktHWt " 1\ fh IJc~dj dd; SIIIL

Bell Atlantic Corp
Bridgestone Corp
Exxon Corporation
Kodak
Kraft
Mazda Motor Corporation
Monsanto Company
New York Stock Exchange
PepsiCo
Quaker Oats
SmithKline Beckman Corp
Texaco lnc

52 WPP Gro up plc

 .-\s \\·orl cl \\·ide Public Rela ti o ns
prau itic)n crs. Hi ll and I<n owlt o n
has c:-:pc ri encc in C\-c ry industry.
.-\ lll l) ng it s ~1rcas l)f spec ial
Ll)llllllunica tions e:-:pc nisc arc
h1gh tec hnology. tra\·cl and
leis ure. hcalth carc prnducts a nd
sc rYiccs. int ern a ti o nal trad e and SmuhKitne press confa cncc lO
ccLm o mi c clc\·clo pmcnt fo r mmouncr nrw AlDS anribody rest
na tiLmal and local go\-c rnm em s.
acad c mi a. la bL)r. bankin g a nd
fi nan c ia l se n ·ices. utilities. and
t raclc as so ciatio ns.
Hill a n d l<no wlton is w ell
kn O\\'n ro r it s abi lit y to help
c li e nt s co mmuntGHc effec ti ve ly
in cri s is s itU<Hio ns. The co mpa ny
ha s cu un sc lcd mGre th a n 150
CL1rpo ra ti o ns nw o h ·ed in hostil e
ta kco \·er cont es ts. and
un co nt cs tc clmergc rs an d
ac q ui s itio ns during th e las t si:-:
\· ea rs. It has also w orked on
m aJOr e1wiro nm ent al probl em s,
in c lud ing th e Three Mi le Island
Principals:
nu c lea r reac tor cris is in th e
Roben L. Dilenschneider
U nit ed Sta tes and th e chemical
p,·esident & ChiefExewtive Officer
cont a min a ti o n in Se\'eso. Italy It
Hill and Know!ton, Inc.
h a s int e rve n ed . in additi on . in
Richard E. Cheney Chaimw n,
n a tura l di sas te rs such as th e
Hill and Know! ton, Inc.
Me xico C ity ea rth q ua ke.
Roben K. Gray Vice Chaimwn,
pro duct adcliti w a nd taim ed
Hill and Know/ton, Inc. and
prod u c t CLmt ro vers ies. and ot her
Clwinnan. Hill and Know/ton USA
u rge nt s ituatio ns th a t required
Thomas E. Eidson Exewtive Vice
pro fess io n a l co mmuni ca tio ns
P1·.:sidcnt, Hill and Know!ton, Inc.
ca pa biliti es.
and Prcsidell! c- C/Jicf Opcra ting
Offiw; Hill and Know! ton USA
Claudio Belli Pll'Sidwt and C/Jicf
Excwtivc O{ficer- Eu rope, Africa
and lvliddk East
Arn old A. Tucker E.xewtivc Vice
President, Hill and I<nowlton. Inc.
/ .
:; and Prt·sidcn t c..~ ChicfExcwtiv,:
~ 0/fiw: Hill and I<nowlton Asia
~· ;::;
f
~ Pacific
/
7
f
;.- David Wynne-1\!organ
<
~ - Clwimwn. Hill and Kii!JWi ton
~
;!
lUKl Ltd.

\VPP Grou p plc 53

 Market Research

MRBGroup

MRB Group is the sixth largest market

research company in the world. The
company consists of Si mmons Market
Research Bureau and Winona Market
Research Bureau in the US, British Market
Research Bureau, Mass-Observation and
MRB Interna tional in London,
Basisresearch in Frankfurt, and japan MRB
in Tokyo
The largest single product offered by MRB
is the Simmons "Study of Media and
Markets~ This annual sampling of 19,000
US adults, now in its 25th year, yields we \\
over 350 million pieces of information on
media usage, product and brand purchase
behav1or, \eisu1·e acti vities, lifestyle and life
stage information. In addition to
pub! 1cauon 111 43 volumes, the database is
also avail able in a unique microprocessor
system -C HOICES
Winona, equal in size to Sim mons, is
recognized for its state-of-the-an 210
station computer assisted teleph one
interviewing system and for its
quantitati ve fu ll service studies.
British Market Research Bureau, MRB's
largest UK company, specializes in large-
scale quantitati ve surveys for major
manufacturing compani es, and is heav il y
involved in research for th e public sec10 r
BMRB also runs the Target Gro up In dex
(TGI), the premier source of media
plan ning information in the UK
MRB's second UK compan y, Mass-
Observa tion, spec iali zes in problem -
solving research on branded consum er
goods Included among it s off erings are
simul ated test market services for
predicting the perl ormance of new
prod ucts.

54 WPP Group plc

 OELCA:--iTOS
"TOt' JOHN "tAHER.)
FRA:-iK S1Ac; '

MRB International, although based in the

UK, offers a \vo rld wide research capabilit y
Last >'ear it cond ucted sun·eys in 0\'er 20
countries.

Basisresearch, Frankfurt. oilers rop quality

survey research throughout \\'est
Germany; with ex pertise in opini on
polling, media resea rch. consumn rrends,
mororing and ph armace uu ca l research.

Japan Marker Researc h Bureau !J0. !RB l

offers a ,·iral rout e to undersrandmg rhe
Japanese co nsum er !o r mult l-llCll le>nal
compani es co nsrdering entry or Principals:
deve lopm ent in rh e Japan ese markerplace Frank Stanton Group Chainnan and CEO
John Maher Group Exewtive Vice Presidem
Tim Bowles CEO- MRB Grot~p Ltd
Dick McCullough CEO - Winona MRB
joel Cantos Group CFO

\\'PP Group plc 55

 Non-Media Advertising
Graphics & Design

t.:J
:::; '"
~
...J
UJ
0
"',..
8
Q
"'"'<
...J
3

Sidjahov Berman Gomez & P~rtners .

Founded in 1981 , Sidjakov

Bcrman Gomez & Partners is a
unique marke ting
"'
UJ
lfl comm uni cations firm
UJ
,.."'
UJ
spec ia liz ing in total
z com mun ications planning for
[;;
::J
CL1 rpora tions in a ll types of
8
industries . lt prov ides inter-
related expertise with special
e mphas is on package design.
L'L1rpo rate identificatio n . retail
faci lit ies design. a n d n a m e
deve lopm ent.
Partial Client lis t:
Anh euse r-B usc h Principals:
Citi corp N in1las SidpkLw. C rcutivc Director
Colgate- Palmo l1 vc )err\' Rcnn ;m. C reative Director
Del Mon te Fh\'iL) ( ;llllll'=. Dl i 'Cd<ll : AtDH Oil
Frito-La y
l\1and.~< ·mol r
Ge ne ral FotJd s tv!J , h<tcll 'uJ·\·b . A, · co t~nt Director
Ge neral Mi ll -.
l .<liT\' Rt>c llig. -"''''JIIIf Dircdm·
I<raft )cflrc\ IL u·s,>n. At(O!Ul f /li,·,·((or
Le vi- 'it rauss
l';trhe~r.J \ ·1, k. Oircdor
/ksl,l!}l
Nes tle ( , >un Ill'\ ' l~c c,;cr. /. lcs 1,~ 11 Dir.·ctor
Ral ston PurJll <l
i1<llT\ Jkui c'L' h . /ks1g n /liJ'CdOI'
The i'i\l ,., hu r·\· ( < H ilpe~m
)< '< k l ,llllllhc ll. p,.,,,/ t~ dlcJII Owed'''
Q uJ kn l b 1"
Xemx ( '' rj! <lU II <>I l

56 WPP Group plc

 Non-Media Advertising
Graphics & Design

__, >-
"'
~
"-'
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w.J 0
u "'"'
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~ "'c..
I
c..

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I LW
u ..,w.J ::;
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e: zw.J <
LW Q, ::;
z
zw.J "'{__,
"'

Walker Group/ CNi lnc Principals:

Kenneth H. Walker FAIA President &CEO
Lawrence]. Israel AlA Chaimwn
Walker Group/ CNI is a leading j oseph Roher Vice President & COO
North American retai l design Mark Pucci Pdncipal-in-Charge Los Angeles Office
consultancy with an Martin j erry Vice President, Director of Design - Studio I
international client base. The David Wales Vice President, Director ofDesign- Studio ll
staff of 130 includes Wyatt Neel Vice President, Director of Design -Los Angeles Office
professionals in arc hitec ture, Tony LoGrande AlA Vice President
retail planning, interior, graphic Robert Carullo Vice President
and industrial design , Eric Bress Vice President
merchandising and market Bill Keenan Vice President
research. Design disc iplines
include department, specialr y Partial Client List:
and multi-unit stores, shopping Bloom ingdales
center and public space Ci tibanh:
architecture, corporate interi ors, FAO Sch\1·arz
restaurant design, packaging, Ga p Stores
environmental graphics and Galeries Lafayette
corporate identit y programs Hall mark
Since its in ception in 1970, the Harrocls
firm has won 70 design awa rds. JC Penney
LOreaI
Lucky Stores
Saks Fift h A1-c:'n uc
Rccbok
The Ro u ~e Company
V\'anamakcr,;

Blll0~ \1 !\CDALE>. BllCA IHTO!\ .-\TRIU~l

\XIPP Group plc 57

 Princ ipals: cutr'~
' , ~. · .,. C l](nnHa ni C hi efExe
Non-Media Advertising I,rl.ln 1 "'' .
"1 ' j>hc' ll
.. r
'lcKld .\ fmwging Du·ecto tor
. L . . D·reC
1
Graphics & Design . , .,,·-;c- D <t\"le S Dcstgn
1'L
IL~ rl'll 1\ .
.
ll ,, ,tn
l h ,, rn l'l nwt cc· Directo r
. Director
!) ' , t'. ·l·' \. \L ·Cc>nn
-
c\l ,\ farh cnng
. Di rect r
. H J\\·ard Dcstgn/ Salcs
:\n e.Ire " ' . wr
- I . lllt Ch in s c ,·ap hi cs Dtrec
:-,tc p K ll

I Bmi•ru D«ign Gnrnp Limi"d

\ Business Des1gn Group works with chents on office and

commercial interiors offering a number of related
consultancy services. These range from building analysis,
space planning, interior design, corporate graphics and sign
systems, to full project management, product supply and
implementation with their own staff.
Essentially different from most conventional interior design
practices, the company and its designers believe in working
with management to assist the productivity of people at
work. Major clients such as American Express and Black &
Decker use the company's services in a number of locations
throughout the UK
The group has design offices in five locations in the UK,

I employs over 130 staff, 60 of whom are designers or

architects, and has invested heavily in computerisation.
Alarge list of clients benefit from a strong commitment to
on-going service and facility management.

Partial Client List:

C,cc u nt y Pac dk
Dis till e rs G rc>up
Pe at '" \a l·" ·ic k M c. lintock ER
Th o rn Ef\ ll l Radl<' Renwls & 0
Bank u f Bc>5l<>ll
Ko cl a k
Hclll C\·wc ll
· 11 -c ·tm cnt Board
'>ec urtii C~ ,tnc l l ' ~

T h e l e.--: l ll-, >up

( , ll l {'L'~"''Q I\ · hr a nd
\ \crn ll l ' il< h
( ) l> {'l'llhL"illll' l

L"n d,·H ' I

( od l C\\ d\ \ · , '' >d lllAr k n,;

58 WPP Group plc

 Non-Media Advertising
Graphics & Design

OYAGroup
The OYA Group is a multi-disciplined design consultancy
incorporating three separate divisions. OYA Design is
responsible for corporate graphics, packaging and print
design, OYA Interior is a retail and leisure design specialist,
and OYA Fourth Dimension handles merchandising and
point-of-sale design and production.

The OYA Group has an established reputation in retail and

cosmetics areas, and has planned further development into
design for leisure and corporate marketing services.

Principals:
Paul Oakley join t Ch ief Excw ti vc
Davicl Youngj oin t Chic(Exew tivc
Robin Spence Ma naging Direct01;OYA Fourth Dimension
Mark Simm oncls Ma naging Directo1; OYA ln te~io r
Alan Sruan Ma naging Direc t01; OYA Design
Alan Taylor C1cat1VCD1rcc t01; OYA Design

Partial Client list:

Ansells Sales
Boors
Bunon Gro up
Charl es of the Rirz
Dixons Gro up
Home base
Ken wood
Monsant L)
Parker Pen (UK)
Pent os Retailing Group
J Sainsbury

ShLJwerings
St) ny UK
Yard ic y L1i Lone!,m

\VPP Group plc 59

 Non-Media Advertising
Graphics & Design

Partial Client Lis t:

Britt s h Gas
C h cs tc rt Ll n
C !lt =e n EurL1pe
Da i\\·a Scc unri e s
D ...
tg tta I Eclui
- iJ m e nt Compa n y
G ros \·c n o r Es ta te
Ko cl a k
Lega l & Ge n era l
Me ta l Box
O ly mpi a & Yo rk
Pe ps iCo
Rug b y Ce m e m
····· ·· SampsonJTyrrel! Limited Th e Cro \\·n Es tat e
TSB Eng land a nd \•Va les

Sampson/Tyrrel! describe their unique approac h to

Principals: .
solving communications problems as Image Management.
Ma rtin Sa mpso njoul/ w. . Cl ·t E ·.
H 'C Lill VC
Image Management is the direction of all a company's
Terry Ty rre IIJm.n I C hief. Excc uttvc
Visual communications so that two key areas interact:
Pe te r W idclu p D irccll w
Corporate communications support the marketing of
Dave Ali e n D irector
products - as well as projecting the company to best effect.
Do no ug h O'B ri e n D irect or
Marheting communications enhance the corporate image -
Mic hae l Se lway D ircttor
as We!\ as marketing products or services to best effect.
Serv; · 1 d · · d· Pete r Go mm e D in' cto r·
ces lllc u e: Corporate identity, commumcattons au rts,
annual reports, corporate publications, marketing
consultancy, sales literature, packaging, point-of-sale
material, exhibitions.

60 WPP Group plc


1t-1~ 11'1/1"11· 11( ll ' I <ll 1·1< I Ill \I I <l l '~ ll :-:I
( ,HJI·I·IH· \ KI- ll 1 · \ " '
Stewart McColl Assodates plc
Founded in 1974, Stewan
McColl Associates plc comprises
McColl and Geo!Trey Reid
Associates, and o!Ters a multi-
disciplinary service of
architecture, interior, graphic
and product design. The group
is active in a diversity of market
sectors including shopping
centres, o!Tices, light industrial
and hi-tech. High Street retail
chains, residential, corporate
identity and communications
and leisure and urban
regeneration.
Geoffrey Reid Associates
Partial Client List:
Bunon Group
Commercial Union Assurance
Company
Guardian Royal Exchange
Assurance
MEPC
f\1larks & Spencer
Ratncrs Group
Trafalgar House
11 1·\1 1 '
Non-Media Advertising
Graphics & Design
McColl
Partial Client List
Burton Group
Church Commissioners For
England
Halifax Building Society
Merlin International Properties
Prudential Assurance
Richardson Developments
Shell1ntemational
Principals:
Standing, left to right
Chris Hacking Director-
Geoj]i·ey Reid Associates
Stewan McColl Chaimwn-
Stcwarl McColl Associates plc
Geo!Trey Reid Managing Director
- Gc~[frey Reid Associates
Gordon Warson New Business
Director- McCo/1
Seared, left ro right
Tom Ball Chief Architect- McColl
lan Grant Finance Director-
Me Ce ll &· Geo{frey Reid Associates
Stefan Zachary Managing
Director- McCo/1
David Stanford Director-
Gco[fi·cv Reid Associates
\'WP Group plc 61
 Non-Media Advertising
Graphics & Design

VAP Group Limited

Design specialists in packaging Principals: Partial C lient Li~t:

and promotional, technical and Philip Flook Chaimwn (Non E x c L tlll\ C J R,m k \-:,·r, >.'\

educational material, YAP also Trevor jones Managing Direcwr- :\u ~ttn R,,\·,·r ( .r, ' LI I'

provides a related and VAPGrou p ( h: f, ,rd ln -, rrurr ll·nr -, <" ' ' LIP
integrated above-the-line Charles Day Divisional Di recwr- ·1he 11<>Lh rnt: < , ,rp<> r.ll r, >11
agency sm~ce. VAP Design Con5ultan l5 :\ill LT ~ h.lrll lnt cT il. lll t lll.li

VA PDesign Consultants Graphic Brian Evans Account Direcwr- I kll.1

design, packaging, corporate VAP Design Con5ultanl' O :d u rd L·n rH ·r-, ll \ · l'r,· -,-.

identity, point of sale and Andy Cooke Divisional Direc tor- L<Hl g m ;m Cr,,up
exhibition stand design VAP Advertis ing & Marheting \\ ·m C.u llm :-, ...,,,n :-, & ( _,,
VAP Advertising & Marketing Frank Harte Divisional Direcror- l)l;lc k & Deckcr
Fully integrated above and VAP Resources ',oua l '-, urn: y 1Ca ll up I 'u ll 1
below-the-line campaigns, Ricky Capanni Divisional Direcror- Cou n tn· Da m e :-,
media planning and buying. VAP Publishing Services C SE /W r;ll ru n
VAP Publishing Services Book Robenjones New Business Direc tor- \·a u :-: h a ll \ lo tor;-.
design, marketing consul;ancy VAPGroup
for publishers, typesetting and
anwork.
VAPResources In-house litho
colour printing, specialist PVC
printing, typesetting and
anwork, special project
managemenL

Greaves Hall Limited

G reaves Ha ll w;:~s lormcd in ll)H-+ h y ex p e ri e n ced a nd multi-
di sc ip lin ed pro fe s s io n a ls w ith th e phil osophy o fint egratino
c reat ive s kill s w ith a prec ise m a rk et ing req uire m e nt. This
ph il oso ph y, co mbin e d w ith effic ie nt se rv ice a nd 3 va lue for
m o n ey a pproach. ha s resu lt e d 111 a n c :-:t c n s ive portfo lio of
house h o ld n a m e c li e nt s " IX'c" ra li za ti o n s are in pac kaging,
he low th e lin e litera t ure a nd co rp,,ratc co mmuni ca ti o ns.

Principals:
lre n e H a ll Sa les Dircctm / ]oin t
C l11t'j E \ccrui vc
l'v'bl n, lm C rcaves C rea tive
p 11 ·,·, ttll" ./<'llil C hic{ExcCII tivc·

Partial Client List:

A RC: CP n s t ruCLi o n
Bu rmah Cast ro l
Digit a l Eq uipm e nt Co mpany
CH · La rge Mac h in es
f {, m c y wc ii -Bu ll
lmh ,,f Fkd co Sta nd ard Product ··
I<ra ft
MAIJ.OLM l .;l!ld I~Ll\'LT
GREAVP\
I 'c llf(l'< ,, -, a lh, 11
l ~.-111k ,'\l' r ~'A

r\nhu r '-.c~n d cr :' < 1 il & So ns

'-. p<>lllt' '

fi/ \X!PP Gr()u p rlc

 Non-Media Advertising
Incentive & Motivation

Grass Roots Group plc

Client Areas:
Agricultural Supplies
Automotive Manufacture and
Distribution
Automotive Supplies
Banking
Client Industries
Computer Manufacturers
Computer Distribution
Consumer Credit
DIY Supplies
Electrical Appliances
Financial Services
Horticultural Supplies
Insurance Companies
Petrol and Oil Supplies
Pharmaceuticals
Principals: Retailing
David Eva ns Cha imwn &·CEO
Frank Bai lli e Managing Dii'CC/OI. - Bomlsplan
Rik Burrage Managing Director- Gmss Roots Parlllcrs!Jip
Rob Darcus Crea ti ve Directo,·
John Doe Director- Client Services
julie Hewer Finance Director
Roger Kiln er Direc tor - Gmup Travel C.~ Events
Jim Wh ite Direc tor of Manage ment Services
Raymond Wood Group F111ancc Dircc ttll'

The Grass Roots Group is a collection of services. They are dedicated

to meeti ng the growing needs of industry and commerce to motivate
staff, trade partners and customers. To achieve these objecti ves. the
company combines creati ve communication, skills improvement and
incenti ve motivation.
These services have been organised to provide clients with a focal
poim for their ac ti vities while providing the detailed back up
necessary to ensure minimum cliem administration and maximum
comrol
The Group is arranged into fi ve distinct units: tvloti vation planning &
Skills Improvement; Bonusplan incemi ve management: Direct
Communication and, finall y, Travel and Convemion Manage ment.
These units are linked through the fifth unit. a highl y-advanced
computer division which prm·ides an invaluable data st ream on all
client ac tmt y.

\\1Pl' Gro up tic b3

 No~-Media Advertising
Incentive & Motivation

P & L Intemational
Vacationers Ltd

Int erna tio na l Vaca tioners has for

th e pas t !2 years s pecialised in
o rganising custom-made events
for clients w o rldwide. These
in c lude rhe crea tion. planning
a nd opera tion of incentives.
conferences, product launches.
s pec ia l interest programmes and
corporate enterta ining. From its
Piccadilly Circus base the
company can crea te the perfec t
event for its blue -chip clients
w ho a re based in the UK
Europe, Scandinavia and North
Ame rica.
Partial Client List:
Allied-Lyons
Grand Me tropo litan Group
Ciba Consumer Pharmaceuticals
Gillette
IBM
Paine Webber
Phoenix Murual Life Insurance
Standard Life Assurance
The Boots Company (USA)
Unipan

Principals:
Laura A Morgan Managing Director
Phi hp J Christey Chairman
Veron ica
· R Bliss
· Director ofOperations
Susan P Rusdell Financial Controller
Rosalind Miller Sales Director

64 WPP Group plc


Einson Freeman, lnc
Founded in 1909, Einson
Freeman has long been a
leader in the dynamic fi eld of
sales promotion. Now ranking
fourth among full -service
promotion agencies in the U.S.,
Einson Freeman offers a
breadth of marketing services,
from strategic planning and
Non-Media Advertising
Sales Promotion
award- wi nning creative Principals:
th rough to final execution. Its Pjan Anstatt
list of blue-chi p clients Chainnan & CEO
includes some of the biggest j effrey K. McElnea
names in American industry. President
clients that have helped Einson William F Rosenthal
Freeman grow at a compound Executive Vice President
rate exceeding 20% over the Alan D. Berry
last fi ve years. Senior Vice President
Gordon Summer
Senior Vice President
Robert R Wechsler
Senior Vice President
Charles M. Young
Senior Vice President
William H. Home
Vice President
Partial Client List:
Air France
AT&T
Burger King
Chesebrough-Poncl's
CPC/Besr Foods
Colgare Palmolive
Ralston Purina
Kimberl y Clark
Koclak
PepsiCo
Reynolcls tvlerals
Sranley Tool
Sruan Pharlll<\Ceuricals
Time. Inc. tPcopk i\•laga: ineI
li·imcx (\Bi\ I Scars)
\'WP Group plc 65
 Non-Media Advertising
Sales Promotion

Mando Marketing Ltd Mando Marke ting - a be lo\\'-th e -lin e sa les pro motion
agenc y - headqu a n e red in \ \'add esd on. Bu c kingh a m s hire
and supponed by its Lo nd o n o ffi ce in :\c,,· 0 :-.:ford Stree t.
BR\ANG\BB services a wide ra nge o f c li e nt s in a ll as pccr s o f sales
PAUL sANCHEZ.. CUFF ASH. .
promotion . Areas o f s pec ia li za ti o n inc lud e Fi:-.:ccl Fee
promotio ns, eliminating th e ris k o f Lw e r red e mpti o n fo r
clients from the o utse t, as "·e ll as fu lfill men t o f prommions
w hich are ha ndl ed in-h o use from co nce pt to co ns um er
redemption a nd mail-o ut.

Principals:
Al a n Se lby j oinc Chic{E.\w wivc
C liff Ashjoinc Chic{ExccucivL·
Pa ul Sanc hez t\ lwwgi n,..; Di rcccor
Brian G ibb Accowu D iJ ·t'c Ccw
Mart in Ke m A((Oilnl Dircc cor
!an Ta)•lo r Acunmc Directo r
I
I
I
I
I
I
I
/
/
/
/ //

.........
----------- - -- ..-"
/
/

Partial Client List:

BP
Brooke Bond Oxo
Mars
Preuy Pall y
Quaker Oats
Sichel

66 \'WP Group plc

 Principals: Non-Media Advertising
Gl asgow: London: Sales Promotion
Harry Scoujoin t Managing Dm·ltor !an McAIIister Director
Raym ond Stern j oin t !l lana,r;in,g Director Edinburgh
Bill Mather Creative Di1·ccwr Richard Dickson Director
Jim Warerson Associate Dircctm·
Gordon McBride Associate Di,·c·ctor
Scott Stem Associates

Scou Stem is a creative consultancy providing a unique

blend of sales promotion and design services for many of the
U.Ks most prestigious accounts.

Its expertise in packaging design is complemented by its

knowledge and understanding of sales promotion and the
sophisticated techniques required in today's market place.

In January 1988 Scott Stem opened an office in Edinburgh

w offer an on-the-doorstep service for existing clients, and
provide a further base for future development

7.
8
"'0
v
HARRY S< nn I~ M \ /( l:--;p 'l ER:--: . BILl \ 1.-ITI-IER

partial Client lis t:

A ll ied- Lyons
Ba rker & Dobson
IBM
John sons Wax
Lerrase t
p hilipS TMC
Reed International
scotti sh & Newcasrl B . I
. D · e rewe nes \
scotttSh atl y Record & s .
-Up un day Mad \
se ve n \
'\
S o uth of Scotland El ..
.
L) nd ever
L) nired Biscuits
ecrncny Board
"'"
L) T1 ired Distillers Grroup

/
/
/
/
/
/

----""/
\XiPP Group plc 67
Non-Media Advertising
Audio Visual & Visual Communications

Metro Video Limited

The only professional video company offering its clients the

full spectrum of creative and technical services and faciliti es,
MetroVideo's principal activities of supplying video and
a-v equipment for hire, purchase and systems installation
have been enhanced with the opening of its Soho branch to
develop broadcast hire and tape transfer/duplication
facilities. The high degree of expertise offered covers the
• · Co mpany
The Mighty Movte

The Might y tvlo' te

. 1)'
- f bustnc"
duction
led pro . ·ton
. Co mp ~ul ) . ·t5 •.1 crcauvc . -s televtS ·
fr
· . ·- · ,inall aspec t:,O ,,es o
creative fields of programme production and conference company spectalt .c tn)!, l . - proo r~.unt ,., d
h , it prLK ucc::. e> . g il "
design and staging. For its broad client asc . . ·tdvcrdstn duction
. . . PR inl orm attLm.' . cd pro
trammg, promo uon . . ,rc:-;pc ncnc ost-
Principals: 1 ·om bincHton c . - nd p
corporate use. T l C c l·lrd camera" a d·tor. ensure
David Pacy Managing Director 1 ast sw nc' . e t .
personn el and broac c . . dth a iull -t1111e effecnve
Pauljackman Operations Director . . . togc thet " cl that
producti on fac tlnt cS~ . f 11 ' understood. an doet-
Geraldine Scher Marketing Director . l .ef IS ll ) \Jt.l o
th at the cli ents J rt d tim e e~ ncl tO a
lan Taylor Financial Director rod ucc c' n
programm es are p

Principals: . .. ·tell·
. lg 0 ll ll
David Hughes Manag ll
Genevieve Pati ssier
David Pacy

Partial Client Lis t:

The Army
British Airways on
Central Offi ce of Jnfonn au
Colonial Mutual .
·utt Ve
Health & Safety Exec
Kimberl y Clark nission
.. comt
Manpower Se rvtces
Mercedes Benz
Nationwide Angli a
Prudential
The Royal Navy
J Sainsbury
Partial Client List: STC
Argyll Stores Storehouse Group
British Telecom International
Boase Massimi Pollitt
BBC
Central Electricity Generating
Board
Central Office of Information
De Beers
Mobil Services Company
NCR
Prudential
Price Waterhouse
Reuters
University of London
Wellcome Foundation
68 \XIpp Group plc
 Specialist Communications

z
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...J

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lJ

~ "'
"'
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0 ~
...J )) ~ < "'lJ 0
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zu..!
:X:
g z
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"'
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Anspach Gross man P01·tugallnc

With 20 years of experience in identity consulting we have

worked closely with nearly 250 organizations worldwide. We
help create a competitive advantage for our clients through
thorough analysis, systematic planning and innovative design.
We view design in its broadest sense. It is the visual
manifestation of the solutions discovered during analysis and
plotted during the planning stage. Our clients' success is the
best measure of our success.

Principals: Partial Client List

Gene Grossman American Express
Ken Love Boehringer Mannheim
j oel Portugal Citibank
Ken Robens National Australia Bank
Bill Schneider Navistar
Russ Anspach Price Waterhouse
Steve Lawrence Quaker Oats
Tony Spaeth Raytheon

~~\s~s AnneTynion
Barbara de Groat
Sanyo
Sara Lee Corporation
Bob Wolf Sun
j ames Ferris Texaco
Unisys

\VPP Group plc 69

 Specialist Communications

Brouillard Communications

Brouillard Communications is the leading US agency s pecia liz ing in co rp o ra te a n cl fi n anc ial sc n ·iccs
advertising and public relations.
Since 1981, when the Corporate Commu n icatio ns Di vis io n o f j. \ Va l tc r Thom p so n b eca m e 13rou i ll arcl
Communications, the agency has nearl y dou bled in size lO m o re tha n $70 m ill io n in bi ll m gs
Recognized for its strategic plan ning skills a nd o u ts ta ndi ng c reati\·e \\·ork. L:JS t >Ta r Broui lb rd
Communications added fo ur new accounts and wo n 27 c rea tive a \\·arcls in tc lc\· i,;i,,n . radi o and prinL

Principals:
Partial Client Lis t:
James H. Foster
America n Gas Association
President and
A tl ant ic Muw al
Chief Executive Officer
Aus tra lia n Mea t & Li ve-Stock
Irene Hansen IF ~T · N
~ ......ol'-l\llur•
Blu e C ross/ Blue Shie ld
Senior Vice Presiden ~ --··--·· - ··---- C !VI Alli a n ce
Administration and Finance Ea ton
Terrence N. Hill
Gt, ldma n Sac hs
Sen ior Vice President, C ond yea r
Executive Creative Director rin a rlL' ia l Sec urit y Assurance
I rvi ng Tntsl
J,,hn,.;on & Higgrn s
rvtuniupal Boncl lnves wrs
Ass ura n ce
Tc:-:as ArncrKan B<mks
-lcx t r(ln

70 WPP Gro up plc


i "'r=
~ "'u.J:J
""
:...L; u.J
\.J
:t: e
~
0
Harvard Capital Group Inc
Fo unded in 1982, Harvard
Ca pital Group is a finan cial
comtTtun ica ti on s company.
It provides m arketing services
inc luding d esign . copywriting,
m edi a buying, graphics and
th e productio n of prom otional
m a teri al, m arke ting
co ns ult a ncy and support
se rvices fo r th e place m ent of
new d ebt a nd equity issues,
such as initial public offerings,
mut ual fund s a nd limited
pa rtn e rships It also provides
related se rvices such as
tn vestor co mmunications,
d irec t m a rke ting. m edi a
adve rtis ing a nd th e design of
a nnu al repo rts a nd capability
broc hures.
Specialist Communications
Principals:
David Geliebter President
Roben Wa\\ace
Direc tor ofCreative Services
Peter Wong Design Director
Partial Client list
American Finance Group
Bear Steam s & Company
Liberty Mutual Insurance
Company
McDonne\\-Douglas
Capital Finance
Merri\\ Lynch & Company
Metropolitan Life
The New England (fonner\y
New England Life)
Paine Webber Incorporated
Prudemial-Bache Securities
Shearson Lehm an Hunon
WPP Gro up pk 71
 Specialist Communications
Mendoza, Dill on & Asociados. /n e

Major ad,·ertisers arc P rin cipals:

in c reas ing ly a,,·arc o ft he n cccJ
to reac h th e His p a ni c m a rk e t of
th e Unit ed Sta tes effe c tive ly- an
audience whi c h n o w cxccccb 26
millio n people. Me nd oza. Di ll o n
&: Asociados. founded in 197l).
is th e lead ing Hispa ni c
Richard Dillon Chaimwn
EcJuardo de l Rivero Sr Vice
Pr,·s,dniC; CliCIJC Sc1·vices
Dchorah Gagn e Vice Presiden
Ad lnJI! LS tra rio n
Robcn 1-lowc lls Sr Vice Presidcn
C/ JCIJ( S ,TViCCS

advertising agency Stro ng A ncJrcs Sullivan Sr Vice

accoum a nd crea ti ve teams th at
inc lud e profess io n a ls of
Mexican, Pue rt o Ri ca n a ncJ
Cuban o rig in h ave h e lped bui ld
th e billings tO $40 million p lu s.
registering g rowth in excess of
30% in eac h o f the p as t three
years. Th e agency h as been buil t
b y d e mons tra ting th at its
advert ising ca mpa ig n s, a im e d a t
the Hispanic m a rke t, in crease
sales vo lum e fo r c lie nts· bra nd s.
As an indica ti o n o f its c reative
scope, th e agency was rece n tl y
chosen to de ve lo p th e <; pa n is h -
language public se rv ice
campaign for th e DEA-FBI D r ug
Red uction Program.
Hispania Advertising lnc
President Crea tive Director
Pa rti a l Clie nt Lis t:
j o hn so n & j o hnso n
0. !i ll c r Brewing
i\ le Nc il Co ns um e r Products
Ge n e ra l Foods Co rpo ra ti on
Lcvi Stra u ss
Dcnnys
C h csc bro ugh Ponds
DO'vV Co n s um e r Prod uc ts, Inc.
j oscp h Scagrams &: Sons
HJ H c in z
Kraft
'vVe n dy ·s In te rn a ti o n a l
j a m cs Ri ver Co rpo rati o n
Cover G irl Cosm e ti cs

Hispania, established in 1980 is a full se~'"ce ad ..

a e . . . . ' "' vernsmg
g ncy, spwahzmg m Spanish language advertising
targetted to US His panics.
Hispania is staffed by bi-lingual, bi-cultural advertising
professtonals with in-depth knowled f h
markenng. ge o t e research
· . ·
:creative, and medta requirements of the market
It serves chenrs such as Kraft, Sears, Ford, and .
Wamer-Lamberr.

Headquartered in New York, Hispania also has a Chica o

office staffed for account services. g
FORD TEMPO LX
"DRIVING LESSON" :30
Key People:
Caroline Demy General Manager
Marta Perez-Gerdes VP,
Account Supervisor
Alfredo jarrin VP,
Creative Director

•
Car! os Cintron Media Director
-
\

~~~--~..:.,'~':';?>'·-·~ ....

72 WPP Group plc

 Specialist Communications

]WT Direct Operations

This full-service agen cy is the

division of]. Waiter Thompson
USA specializing in direct
response advertising - those
communications where
obj ec ti ves are to generate
spec ific, measurable response.
and carry on one-to-one d ialog
wi th ind ivid ual customers or
prospects. W ith headqua rt ers in
New York, and a furth er 16 EWA Limited
offices in 12 countries including ····· ····· ······ ··· · •• • • 1

the USA,JWT Direct provides

expertise in the planning,
EWA have become recognised
execution and analysis of direc t
experts in the provision of
marketing programs in med ia
information systems and direct
ranging from d irect ma il and
marketing production services.
pri nt, to television,
Information systems are
telemarketing and today's
individually designed to meet
experimen tal electron ic med ia.
clients' needs, which enables
them to benefit from our in-
Principals :
house data management and
Earl Bahl er Presidenl
control experience. Emphasis is
Linda Loose Senior Vice Prcsidcnl
placed on maximising the
General Manager
utilisation, usefulness, data
Mark Ha ll en SeniOI' Vice p,-csidcn t
integrity and analytical
Crea tive Direclor
processes of any application.
Marketing services include data
Partial Client Lis t:
control and restructuring, event
Ford
management, high and low
McDonne ll -Douglas
volume laser print, lettershop
Tri ntex
and fulfilment.
US Mari ne Corps

Principals:
Eric Wright Chain11an
julian Thomas Managing Dirccwr

\\'P P Gt'lH.q> pk -)
 Specialist Communications

Partiale Client list

Eli Lilley
RJR Nabisco
Miles Laboratories
Roxane Laboratories
Dista Products ). Wait e r Tlwmpson Healthcw-c Gmup
..... .......... ................

Thej. Wait er T horn pso n

Hea lth care Gro up has 8 o ffi ces
in 5 coumri es a nd con s is ts o f
fi ve se pa ra te integra ted profit
cem ers.
Delta has USA - Ad ve n is ing a nd
Sales Pro m o ti o n
Centajor Healthca ,-c
Co mnwnica liom - Sympos ia.
Profess io na l Articles
Medical Research Cent cr - Ma rket
Research , Focus G rou ps.
Con ve nti o ns
Art Des ig n Studio (ADS)-
In -ho use c reati ve s tudio
CYNTHtA KRtMEZ tS Medical ProJeC ts Group-
Any other special proJ ec ts
Th e Group provides tota l
m arketing services to a ny cl ie nt
who wishes to influence th e
Professio nal Health ca re
Communit y, eg Physic ia ns.
Nurses, Pharmacists, Dietic ia ns.
Dentists, Hospita ls, HMO's.
Key People:
Jac k Stcve ns Chairman
Cy nt hi a Krimezis
President. Dclralws
Ph i! Fiorello Se nior VP..
Crea ti ve Dircctm: ADS
Bob Voge l Sfnior VP.
Mana,Rin,~ Directm;UiC
Marc ia Stil es 1/P.
Manu,~ing, Din·<1o1: /vtRC
Peter tvlirabell a 1/P.
A,/nJJnJs lra iJ<'"
1\0 il VU(,I·.I 1'1 IIH \ IIIU I\1 11 .-\

74 WPP G roup plc

 Specialist Communications

Tho mpson Rec ruitmem r\d,-e nising is a leading full- Principals:

sen· icc recru itment advertising agency, servicing some Don Robenson President
1. 100 corporat ions and institutions through its 27 offices Gerry Blueu Senior Vice President, Finance
located thro ugho ut th e United States. 1987 was the most Mike Gill Senior Vice Presiden~ Creative
successful yea r in Thompson Rec ruitment's 40-year Car! Hight Senior Vice President, Midwest Operations
hi stnn: Its crcatiH' leadershi p reputation was funher Chuck Loven Sen ior Vice President, Personnel
e nh a nced in 1987 contributing to an above-average year in Kim Macalister Senior Vice Presiden ~ Westem Operations
ne,,· clients ga in ed. The company's investment in office Stan Mclntee Senior Vice Presiden~ Eastem Operations
au tomat ion. graphics. and production technology similarl y Jim Willette Exewtive Vice President, Client Services
contributed to it s competi tive strength.

BNR~II
\\li ER.E nst: ~ISilS MA:'\AGE 11\' :iOOTION.

I [ L ( CO MM U N I CAT!ON S A N D I N TE GR ATED OFF I CE S Y STEMS

Thompson Rem1itment

~~:·~;!~ :~~.: ,-:;;~~:~:; ;,:~~~~ 41";~;,::::::;,.,~:'": ,.:,:;;:•; ~:ton~'""'~ 1tun h • ll •

,...,.JJ
y,,.. , ~, ., ~~ r rr~ ru rr10•1\nt r.. ~""'~· """ .,, "~"' I ',, . .,,.., '' · .~, . """' ,,.,,.,. Jiu• <
....,~,.,J> y f • A I k a ...... a" J l l pa1d f,.,j,j._ , ~~''' >r-> t •'" ' ''""' .. 1 u • •. t..nu.,:<"> ,. '" " " ~'"" -.. b "
rt., 1; 1n, Fa nal "'"'"''"' Jl, .,,,~,/ .rn.l Hn•.r • ~ 1 ....,, •• "' ""'"'' ..,,.,.,. ''" '" ..... •~'~•• "'" .t~ ....
• -:>rnHunuy fut< h > ~
l'h<c I !u• p<tal • hrd • !'-'• •• h • •~ lr••• l • ''" ' ''' • ,. ' '" h •r<o:-1•"" • r~.-.~,,.. u , ''"' I hn
r n~ tni <A .:>ntut onn, .,od ou <U <Iullv v ln onl ,., ,.,,, • ., ,.,..,( "•" "' !... to .....!'" l'"" 'o.lm~ ., ,~[,
<1....Jn~ hcahh u r• '" thr ft unl 1-. m <h .r~l o~t hr• U<U fl•
f,,. fun hcr <n l<»ln•ll•li<Of"l ' "'" • i'l•l • t•l.-....- ... ,,.,

~~;::z:~~;:~:::~f:~.;~~·S:. ::~! :~:~.::.:·: ~ HCA ::'~~~nal

j,.,~l< ):-.p ><h<n lfv Ernpl.•••• ),,,., • h ,ot ll l" h ~ •\ < h.m ._,
 Specialist Communications

Partial Client List Principals:

Calton Homes "'' rrAJli' :-.:t ·r \1.·\:-.:
Milton Bagley
I ·.r.
Dell wood Foods
President and Chief Executive i2
FPA Corporation !:'?
Officer
Goodstein Management Richard Nul man
Haft-Gaines, Developers Executive Vice President and Chief
Hovnanian Enterprises Operating Officer
H]Kalikow
John Grimes Vice President
Orleans Developers
George Neuhaus Chief Financial
M] Raynes
Officer
Rose Associates
Randall Arthur Vice President
Charles H Shaw Company
Steven Erenberg Vice President
Solomon Equities
and Creative Director
Trammel Crow
Lawrence Turk Vice President
World-Wide/Zeckendorf
Realty Corporation
DeMattis Organization
Starrett Building Co

..... ....... .. ..... ..:.~~- ~-ommunications Group Inc

..... .. ..... .............. .. .......

Pace is full · .. . · 1· d ab ilities

. m 1 dIn this
. thearea of res ide ntial and co mmercial rea l Ees tate.
a -selYice adverusmg agency known for Its specia Ize cap . _· nd deve lopers fn1111 Ne w ng an
field . h . . . S epresenung propel rr es a . 10 I
' It as attamed a position of leadership in the eastern United tates, r . . Dcsl) it c his concc mrauon, Pace a so
Florid a, m
. markets both local and international in scope, and m . every asp ect of th e. mar 1<e tmg proces..
5 - 1
serves cI'Ients m . . an d f'ma ncial serv ices.
. such other categories as foods, apparel, retailing

76 WPP Gro up plc

 Specialist Communications

RE ES E
COMM UN I C A T I O NS
COMP AN I ES

Partial Client List

American Medical International
AT&T Communications
CSCAR (a coalition of utility companies supported by
Edison Electric Institute)
Drexel Bumham Lambert
Electronic Industry Association of]apan
Georgia Power
Gulf States Utilities
McDonnell-Douglas
Natural Gas Supply Association
Peabody Coal Company
Philip Morris, USA
Philip Morris International
Southern Company Services

Reese CommunicatioiiS is a U.S.-based di rect marketing fi rm

specializing in grassroots communications to sell products,
improve corporate images and win legislative battles. Much
of RCC's success resul ts from its use of geodemography to
identify and educate a clients most desirable prospects.
RCCS services include:
Strategic planning, survey research, ... arket segmentation
and message development, graphic design, direct mail and
listmaimenance, production management, telemarketing

list of Principals:
Reese Communications Companies
Matthew Reese Clwimw11 and ClliefExewlive Officer
Lynn Pounian P,·esident and ClliefOperating Oj]icer
John Ashford Senior Vice President- Marlleting
Targeti ng Systems, Inc. (a division ofRCC)
Charles Welsh President

WPP Group plc 77

 Specialist Communications

Tromson Monroe Advertising Inc

Tromson Monroe has been a

leading specialist age ncy in th e
fi elds of travel and leisure
marketing communications for
more than 25 yea rs. It is a full
service age ncy producing
award-winning adve rtising and
promotional campaigns, publ ic
relations, audio visual design
MA RIO TROMBONE
and production and consultancy I LSE TRO~ IBO~E

for the hospitality industry Its

clients are global and in clude
government tourism boards and
trade commissions, airlin es,
cruise lines, hotels, travel
agencies and communicati ons
services

Principals:
Mario Trombone
Chainnan
llse Trombone
Executive Vice Pres ident
Michael Youngman
Senior Vice President Mari<e ling
Stan ley Feuer
Vice P1·esident Finance

Partial Client List

Antigua Governm ent
Bermuda Star Cruise Line
Calaber Telecom muni cations
\ 1l( HAEL YOUi'G~ IA :'\
Network
Frenchmans Reef St. Thomas
German Nation al Tourist Offi ce
Golden Tulip Aruba Caribbean
Hilton Hotels- Regional
Liberty Travei/ Gogo Tou rs
LRP Video
Micato Safa ris - Kenya
Royal Antiguan Hotel
Savo)' Hotels
Sofi tel Hotels
South Sea~ Plalllallon
KOM

78 WPP Gro up pit

 Specialist Communications
~~
-;.' 1 !JI I i· .if

BecausA I
movie lovers ·
consume
a lot more than
popcon1.
j &B. Dodge Guess' CBS - SAAou:h.
j'v\Tf Entertainment fulfills the fast-paced and
media-intensive needs of leisure accounts including
Premiere Mag<!Zjne
~-d)· ;o:~os m. r•Ti.M'f'l;hkl- l"'mr~
•..:l t.":;"l";:'...lU:" h o:> .... d . _• .,
motion pictures, pre-recorded videocassettes, television
programming and amusement parks. The core group in Los
Angeles and New York consists of account service, media,
traffic, and print production personnel well-versed in
Th e Entertainm e nt Group entertainment marketing. The Group relies onjVlT Los
Angeles, where it is based, for creative and other required
disciplines, as well as drawing on the complete resources of
JWT USA to accomplish client objectives.

Principal:
Richard T Markovitz
Senior Vice Prcs ide n ~ Account Director

Partial Client List:

20th Ce ntury Fox
Paramount Home Video
Universal Te levis ion
Premi ere Magaz ine

Hear the best silents ofall time.

'29" suggested retail price for eadl title.\1\lrehouse release date: June 3. ·---------·- -- ---~·-·-·--=-~llli!li!

\\'PP Grou p plr ?Q

 Manufacturing
Wire & Pla sti c Pmduc ts

W ire & Plastic Produc ts was fo u nded in 1958 a t

Dartford , Kent to manufacture wire goods. ll is head ed by
the founder Managing Directo r, Gordon Sampson , "·ho
supervises and co-ordinates the activities of a n umbe r of
companies classified into the follo wing four di visio n s:

A/ ton Wi re Products (Ke nt ) employs seve nty peo ple a nd

manufactures d omestic plastic coated w ire goods w hi c h
are sold to the hardware departm ents of m an y sto res
under the trade name of Del fin ware. Sales a re co ntro lled
by Mike Simm onds, who has bee n w ith the company
twenty years.

Staffords hire Hollowm·e (West Midlands) employs fift y

people and manufactures aluminium cookwa re w hi c h is
marketed under the name of Histon Evercoolto bo th
wholesale and retail ou tlets. lt is headed by Des Gree n
who has been with th e company twe nt y yea rs.

DESMOND GREE:--l

N01·th Kent Engineering (Kent) employs forty-fi ve peo ple in

the manufacture of stainless steel laboratory eq uipm ent
used by most of the large research centres. 1t is headed by
Tony Stebbing who has been with the company twe nty-
seven yea rs.

ANTI-IONY ' I tllfl l ~ < •

Refrigeration Boumemouth (Dorset) empl oys sixtee n

people and suppii es, !its and leases refrigerators and
shopfitting equipm ent to indepe ndem stores. it is headed
by Brian Simpkin who has bee n with th e com pany e ight
yea rs.

IJRIA I' SIMI'KI I'

Partial Client List: Ga teway Foodm arke ts Safc\\'a y Food S t o r e~

AS DA Glaxo '> pa r i·o,>dm<t rkct'
Ben ta lls !Cl Superdrug '> to r es
Boots Jo hn Lc\\· ts Pa nn e rs htp 'l c~u> '> to re,
Fin e Fare L.1ttl ewoods ,_,,, . \\(ll>l\\'t>rth
Fi sons :"J md in & i>eaLPck

HO WPP Gro u p plc

 Board ofDirectors and Advisers

WPP Group plc Bankers Stockbrokers Access Symbols

JR Syrnonds Chainnan Barclays Bank PLC Panmu re Go rclon TOP IC Pc~.~,· -t8020

JJ.D. Bull more 54 Lombard Street & Co. Limited Rcutcrs IJI-fCl
RE. Lerwill London EC3P 3AH 9 Moorfields Highwa lk \l ,\ SDAQ \\'PPG !'
JA Quelch London EC2 Y 9DS
The Long-Term Credit Bank
G.C Sarnpson
ofjapan Ltd
M.S. Sorrell Solicitors
18 King William Street
Calow Easton
DD. Cheesrnan London EC4N ?BR
18/ I9 Southa mpt on Place
RP Emmins
Midland Bank plc London WC I A 2AJ
A.M Frew
Poultry
S.L Galpert Davis & Gilbe rt
London EC2P 2BX
MW Hoban 850 Third A,·e nue
P Law-Gisiko JPMorgan New York
A.B. Lesniak PO Box 161 NY 10022
E. Mueller 1 Angel Court
Fried, Frank, Han·is, Sc hri ve r
OM. Roberts London EC2R 7AE
& Jacobso n
CF Schulten Secretary
National Westminster Bank PLC 1 New York Pl aza
DP Tinkelrnan
21 Lombard Street ew York
LJ. Trencher
London EC3P 3AR NY 10004

Head Office
Merchant Bankers Property Advisers
27 Farm Street
London Wl X 6RD Samuel Montagu & Co. Ltd j ames Andrew Badge r
10 Lower Thames Street 11 Waterl oo Pl ace
Registered Office London EC3R 6AE London SW I Y 4AU
Industrial Estate First Boston Corporation
Hythe Registrars
Park Avenue Pl aza
Kent CT2l 6PE National Wes tmi nster Ban k PLC
New York
PO Box No. 82
NY 10055
Auditors Caxton House
S.G. Warburg & Co. Ltd Redcliffe Way
Anhur Andersen & Co
33 King William Street Bristol BS99 7N H
1 Surrey Street
London EC4R 9AS
London WC2R 2PS
Wertheim Schroder & Co
Incorporated
200 Park Avenue
New York
NY 10166

82 WPP Group plc

 Boards and Client Service Groups

Rasor Communications Rasor Communications Inc Client Service Co-ordination Wire & Plastic Products
Limited PJ Anstall Groups Limited
C.f Ash i\ LF Baglcy BJ Manning G.C. Sampson Chainnan
Pj. Christey C.E. Bc rm an RL Dilenschneider R. E. Lerwill
RP Emmins R.E. Dill on f Stamon BJ. Simpkin
D.Evans D.i\ 1 Celiebt er plus the directors M.S. Sorrel!
PG. Fl ook FM. Go mc:: of Rasor Communications
TH.j ones EJ Grussrnan Limited and Rasor
B.P Key RE Lcm ·ill Communications lnc
R.E Lerw ill
A. Clark
j.S McColl J 1-< i\ lc Ein ea
TC. Elliott
L A. Morgan D. i\ km·is
J WWardell
G.P Oakl ey R.A Nulman
R.L Dilenschneider
D. Pacy JB Punugal
f Stanron
G.C. Sampso n L C Puunian
plus the directors
M. Sampson MA Recse
ofRasor Communications
C.f Sc hulten J Roher
Limited and Rasor
HE Scott N. Siclj akov
Communications lnc
A. Selby MS Sorrell
M.S Sorrel! D P Tinkelman
R. Stem KH Walker
S.PTodd
RJ Tyrrell
Tj. Tyrrell
D.RJ Young

Organisa tional Struc ture by Entit y

j Wa iter T ho m pson Lord Gcllcr Federi co

Compa ny Einstein

l • 'll l l lllJI H ~ . \l hl ll -.

\XIPP Group p lc 83
 WPPGroup plc

SI ~IEOOI GALPERT. \I ARTY\ ROBERTS. TO\Y STI\11'50\ '\ ICOU ~EI"lD I E . I"lY\IP:q I I Y'\ 1" ' 11 RI \I\ Ill I I \i t ' RI
/

7
/

SUE PAI.IN. II"ENDIE BI.,ICK ~IORE. ,\\ITA FRE\\: BEITRI.EY PECK \ IARIE llllfl,l:-.: RllllEin I.Fim 11.1 11·1 1.1 llRt l \\ '-

\ \ -1 1~ !I' !\!!< >\\ '. 1'1 11 "I 1\\ t ,\,If.: <' , I ! I \~ I li t 111:\IW

The objectives of the holdi ng company are three-fold Firstl y,

to plan, budget and monitor the financial strategy, tactics and
performance of the Group Secondly, to plan, negoti ate and
execute the acquisition strategy of the Group, and desc ribe
and explain the Group's strategy to its existing and potential
institutional investors Finall y, to stimulate and foster the
cross-referral and synergistic developments between the
differe nt activities, fun ctions and countries across the Grou p

IIIH ( 1 flh i HI\'\1 11 1\W\l Ill R llil \, \,\ lt 1\ \ll,\ l<lll l'\"1 \ 1 1\ l'' l 1.\! \1 I 11 Ill " I' ' I 11 \ "\ l \ 11\1 Ill <I, ,, 111 1 ' ' I 1·.

134 \\'PI' (iroup plc

 Directors' Report

The direc tors ha,·e pleasure in preseming their annual Mr RE. Lerwi.ll has been granted options under the
repon, toge ther with the audited accoums, for the year Executive Share Option Scheme in respect of a total of
ended 31st Decem bcr 1987 69,734 Ordinary shares.

Messrsj j.D. Bullmore andjA Quelch were appointed to

Profits and Dividends
the board on 1st January 1988 and llth February 1988
The profit on ord ina ry aui,· iti es before tax for the year
respectively Mr PM. C. Rabl resigned from the board on
was £.14, 11 7,000 ( 1986 ll,757.000)
9th june 1987
The direc tors recomm end a fin al ch ide nd of 4 9p per
Mr j.R Symonds retires by rotation and, being eligible,
share which. toge th er ,,·ith the intc tim di ,·idend of l.5p
offers himself for re-election.
per share, makes a total of 6.-+p per share ( 1986: 3.2p).
In accordance with the Company's Articles of
The retained profit of[. -+,748.000 is caJTied to reserves.
Association, Messrs JJ.D. Bullmore and jA Quelch retire
at the forthcoming Annual General Meeting but, being
Review of the Group
The Company is a hold ing company eligible, offer themselves for re-election.

The princ ipal ac ti ,·it y ol the Gro up is the pro\'ision of
marketing services bot h nati onally and multi-nationally
The Group expanded considerably during the last year
by compl eting nine acquisitions of wh ich four were in
the United Kingdom and fi,·e in the United States. The
most significam acqu isition ,,·as that in Jul y 1987 of j\VT
Group, Inc.
A full review of the business and fu ture de,-elopmem of
the Group is give n in th e Chairman's Statemen t.
Substantial Shareholdings
The Company is not aware of any interest representing
5 per cent or more of the existing issued share capital of
the Company.
Close Company Status
The directors have been advised that the Company is not
a close company within the meaning of the terms of the
Income and Corporation Taxes Act 1988.

Th ere have been no significant changes in fixed assets Share Capital

during the year 01her th an those arisi ng from the The Authorised Ordinary share capital of the Company
acquisitions referred to in the Chai rman·s Statement and was increased during the year from £.1 ,400,000 to
set out in '01e 11 to th e accoums. £4,480, 000 in Ordinary shares of lOp each, following
approval by the shareholders in General Meetings.
Directors
The number of Ordinaty shares in issue increased during
The di rec tors· im eres ts. mclucli ng famil y holdings. in the
the year from 11,390,698 to 36,669,696. The increase is
Companys share ca p 11 ~1 l held benefi ciall y were as fo llows:
accounted for by shares issued as pan consideration for
O r·dinary Shares acquisitions, a placing for cash and, injuly 1987, the issue
6t h 31st l st of 24,310,870 shares to existing shareholders through a
:-. tay December January rights issue.
I Y88 1987 1987
j.R Sy moncls 12.'1 47 12. 547 12.500 Under coun sanction, the balance on the share premium
JJD. Bull mo re 3l1L1(\ account was cancelled and transfeJTed to a non-
R.E. Lervvill 2L1.LYI '1 2l\l17 =, 20.000 distributable special reserve Full details of all share
JA Quelc h 4\)l) mm·emems dllling the year may be found in Note 19 to
GC Sa m pson 2KlJ =, I '1 2KY '1 I') 288.733 the accounts.
MS Sorrel\ Y W .2K i Y)L) 287 L) J6.8JJ

\\'PP Group pk 85
 Directors' Report
Continued

It is proposed ro extend the existing power of your
directors in relation ro the allotment of Ordinary shares
for cash in order ro give your board continuing flexibility
and shareholders' approval is therefore sought to
disapply the pre-emption provisions of section 89( l ) of
the Companies Act 1985 in relation to Ordinary shares of
a nominal value not exceeding £.183,000.
Subsequent Events
Five acquisitions in the areas of non-media advertising
and specialist communications, three in the United
Kingdom and two in the United States, have been
completed subsequent to 31st December 1987 These are
described in the Chairman's Statement.
Thi s is achi en,d by fL1rrnal ~md infprmalmcetings at the
individua l company IC\·cl. and distribut io n of the annua l
report anc.l accoum:-; through o ut the C wup. The
Execu ti,·c Share Opt ion Sc heme i:-; a,·aiL1hlc tLl all ful l-
tim e emp loyees of th e Cn1up numinatecl by th e d irec tors
of each company \\·ithi n th e C wup . and Llptiuns have
currentl y bee n gr:1 nt ecl to a tota l Ll f 2-+2 ( 10H6: -+8)
employees 0\·e r a total of I .560.0-+ 3 ( 19H6 338,765) lOp
Ordinary shares oft he CLllllpany. The e:-.:crcise of th ese
opti ons is ge nera ll y CLlll c.l itiunai Llll the prdi t
perform ance oft he emp l oyee~ CL llll pa ny
Charitable Contributions
Th e Gro up co mrihu tecl Ll 7.770 tLl U I< charities in 1987

Further information can be found in Note 22 to the

Auditors
accounts.
The directors will pl ace a resolutiun hdo re the Ann ual
Ge nera l Meet ing to re-a ppoint Anhur Andcrsen & Co as
Disabled Employees
auditors for th e ens uing yea r.
Applications for employment by disabled persons are
always fully considered, bearing in mind the apti tudes of
the applicant concerned. In the event of members of staff
becoming disabled every effort is made to ensure that
their employment with the Group continues and that
appropriate training is arranged. it is the policy of the
Group that the training, career development and
promotion of disabled persons should, as far as possible,
be identical with that of other employees.

Employee Consultation and Involvement

The Group places considerable importance on the
contributions to be made by al l employees to the
progress of the Group through their respective By Order of the Board
companies, and aims to keep them informed on matters C F Schu li en
affecting them as empl oyees and on developments Secre tary
within the Group 6t h May ILJHH

H6 WPP Group plc


A summ ary of th e pnncipal C rL1up accounting policies,
all of ,,·hi ch ha,·c bee n applied consistcmly th roughow
the yea r and ,,·ith th e preceding yea r. is se t out belm\:
l. Basis of Accounting
The accoums arc prepared under th e hi storical cost
convemi on. mnclilicclw inc lude th e re,·aluation of land
and buildings The co nsnliclatcd <KCL1Ull! S include the
res1,.llts of th e Company and all it s subsidiaries made up
to the sa me accounting date The resu lt s of subsidiaties
acquired during th e year arc included from the date of
compl etio n of th e acquisitiLm
2. Tangible Fixed Assets
Tangible fi xed assets arc shown at cost or ,·aluation less
accumulated deprec iati on.
Deprec iat ion is prm· ided at rat es ca lculated to \\TiLe off
the cost or val uat ion less es timat ed residual value of each
asset on a straight -lin e basis O\H the estimated useful life.
as foll ows:
Freeh old buildings - 2'}"
Leasehold land and buildings - O\'t' r the tem1 of the lease
Plant and machin ery - 20% or 25%
Fixtures andliuings - 1(1% to 25%
Motor vehicles - 25% or 33~%
Surpluses ari sing on the IT\'aluation of tangible fix ed
assets are credit ed to a non-d istributable revaluat ion
reserve. O n th e dis posal of a t-e \·alucd fixed asset the
revaluatio n s urplu s is tran sferred IL1 d istributable
reserves.
3. Stocks and Work in progress
Work in progress is ,·alu ec.l a t cost whi ch comprises
ou tlays incurred c1n behalf of cli ent s. or the ,·alue of work
perform ed o n un cu mplct cd asstgnmcm s or products.
Provision is mad e ln r nLlll -ITC(l\'f rable costs \\'here
appropri ate. Stoc ks a rc stated at the k1wer pf cost and net
reali sable ,·alue
Statement ofAccounting Policies
4. Debtors
Debtors are stated net of provisions for bad and doubtful
debts.
5. Taxation
UK Corporation tax, US Federal and state taxes, and
other foreign taxes are payable on ta..xable profits at the
cuiTent rates prevailing.
Defemd taxation is calculated under the liability method
and provision is made for all timing differences which are
expected to reverse, at the rates of tax expected to be in
force at the time of the reversal.
6. Pension Costs
The companies within the Group operate several
connibutory and non-contributory pension schemes.
The scheme funds are administered by trustees and are
independent of the Group's finances. Actuarial valuations
of the schemes are caiTied out at various dates in
accordance with the tenns of their respective Trust Deeds
or more frequentl y as deemed appropriate. Contributions
are paid to the schemes in accordance with the
recommendations of independent actuaries to enable the
Trustees to meet from the schemes the benefits accruing
in respect of cuiTent and future service. The Group's
contributions are charged against profits irt the year in
which contributions are made.
7. Tumover
Turnover comprises the value of sales (excluding VAT,.
sales wxes and trade discounts) of goods and services m
the nom1al course of business.
8. Goodwill
Goodwill represents the excess of the cost or value
attributed to investments in businesses or subsidiaries
over the fair value of the underlying net assets at the date
of their acquisition. Goodwill arising on consolidation is
wrinen off against reserves in the year in which it atises.
\\'PP Group plc 87
 Statement ofAccounting Policies
Continued

9. Translation of foreign Currencies

Foreign currency transactions arising from normal
trading activities are recorded in local currency at current
exchange rates. Monetary assets and liabilities
denominated in foreign currencies at the year-end are
retranslated at the year-end exchange rate. Foreign
currency gains and losses are credited or charged to the
profit and loss account as they arise.

The profit and loss accounts of overseas subsidiaries are

translated into pounds sterling at average exchange rates
and the net investments in these companies are
translated at year-end exchange rates. Exchange
differences arising from the retranslation at year-end
exchange rates of the opening net investments and
results for the year are dealt with as movements in
reserves.

lO.lnvestments
Investments in subsidiaries are stated in the Company's
accoums at cost less amounts written off for permanent
diminution in value.

88 Wl' l' ()ro u p plc

 Consolidated Profit and Loss Account
For tileyear ended 31st December 1987

1987 1986 1987 1986

Nor,·s LOOO LOOO $000 $000
Turnover 2 284,082 23,685 477,258 39,791
Cost of sales (29,839)
(65,160) (17,761) (109,469)

Gross Profit
218,922 5,924 367,789 9,952
Other operating expe n ses .3 (7,563)
(197,468) (4,502) (331,746)

Operating Profit 2,389

21 ,454 1,422 36,043
Interest rece ivable 891
3,739 530 6,282
Interest payable a nd similar c harges -1 (328)
(11 ,076) (195) (18,608)

Profit on Ordinary Activities before Ta-xation 5 14,ll7 2,952

1,757 23,717
Tax on profit on o rdinary ac ti vities 7 (1,030)
(6,810) (6 13) (11 ,441)

Profit on Ordinary Activities after Ta-xat ion 1,922

7,307 1,144 12,276
Minority interests (126)
(222) (75) (373)

Profit before Extraordinary Items 1,796

7,085 1,069 11,903
Extraordinary item s 54
8 32

Profit for the Financial Year 1,850

7,085 1,101 11,903
Dividends paid a nd proposed (592)
9 (2,337) (352) (3,926)

Retained Profit for th e Year 1,258

20 4,748 749 7,977

Earnings per sha re $0.22

10 32.lp lJ2p $0.54

The main reporting c urre n cy o ft he C roup is the pound sterling and the accounts have been prepared on this
basis. Solely fo r con ve nie nce, the acco unt s se t o ut on pages 89 to 93 are also presented expressed in US .
dollars using the a pprox im a te ave rage ra te fo r the year for the profit and loss account ($ 1.68 - Ll ), the rate 111
effect on 31st Dece mbe r 1987 fo r the bala nce sheets ($ 1.8785 _ [J ). and a combination of these for the
statement of sou rce a nd a pp\ ica tio n of fund s. This translation should not be construed as a represemanon
that the po und sterling a m o unt s ac tuall y represent or could be conven ed imo US dollars at the rates
indicated.

The accomrany ing notes fnnn an iniL)?,ru / part oft his profit and 1<'-'-' <l<"<"Oillll
 Consolidated Balance Sheet
As at31st December 1987

1987 I cJ~ c' 1987 1986

\:otcs LOOO LLILIL1 $000 $000

Fixed Assets
Tangible assets I/ 79. 18-+ 148,747 9,0 19
Invest ments /:.? 3.464 6,507

155,254 9,0 19

Current Assets
Stocks and work in progress 1.3 37 ,920 1.1-\ 1() 71 ,233 3,400
Debtors 1-1 247.836 I 1.1-\'52 465,560 22,263
Assets held for resale and in vestm en ts 15 115.273 I .LHL1 216,540 1,95-+
Cash at bank and in hand 72,6 16 136,409 16,069

473,645 2 )2 ')() 889,742 43,686

Creditors: amounts fall ing due withi n one yea r lh (454.733) (2 1. '5 I ()1 (854,216) (40,-+07)

Net Current Assets 18,912 1.7-+6 35,526 3,279

Total Assets less Current Liabilities 101 ,560 h.'S -+ 7 190,780 12,298
Creditors: amounts falling clue after more tha n
II (91,333) (2.72'51 (171 ,568) (5.1 19)
one year
Provisions for Liabilities and Charges l::l (74,719) (3 L)L)) (140,360) (563

Net Assets (Liabilities) (64,492) 3,522 (121,148) 6,6 16

Capital and Reserves

Called- up share capital /l) 3,670 1. 13l) 6,894 2.1 39

Share premium :zo H. )l)C> 15,772

20 (89,423) (l),)I-\H) (167,981) (17.635)
Merger reserve
20 13,233 (> -fh 24,858 1,213
Other reserves
20 6,963 2.(127 13,080 3,808
Profi t and loss accoun t

(65,557) 2.820 (123,149) 5,297

Shareholders' Funds
1.065 702 2,001 ],3 19
Minority imerests

Total Capital Employed (64,492) 1.'122 (121 ,148) 6.6 1(:

Signed on behalf of the Board on oth Ma y I YHH

RE. Lerwill Direc wrs
MS Sorrel!
The main repon 1ng currency ol 1he Grou p IS I he pt >uml ..,I n ling ,md 1he ,tc·c·, >t ill I,.; h,t\'L' hL' L'll prcparL·d t' ll 1hi,.;
basis. Solely for convemence, the accuun1 s SC i llll lt>n page ... HY 1, , cJ) ,trc .dSt1 prcsc111 cd c:-;p1·c,.;,.;,·d in LIS
dollars using th e approx1ma1e average ra lf !or I he year 1, 1r 1he prt >!11 .md lt ,..,.., ,le·et 'Ll n 1 l ~ I ()H Lll. till' ra~c· in
effecl on 31st Dece mber 19H7 !or 1he ha lan, c ... heel .., 1SI H7H'1 L I l. ,m cl , 1 n >Ill h m ~u il 111 , 1! 1he se· j, >r 1he·
statement of source and appl ica11on ull und .., I hh lran .., l.ui<lll ... h, >t dd 11<1! h,· ,,> lb lrucd .1,.; .1 rL· prL·sc nl :lliL'Il
that the pound sterling amoun 1~ all ua ll y 1cpn ·..,t·111 ' >I , ' 'I tl d he , , 111 n ·1·1n l !Il l,' l ·-, d, >ILi rs <11 1he rates
indicated
The accompanyin).( IWil'l form Wl 111/ cxwl fld 1 I "I il 1" hi/, ill< , , li< , 1

90 Wl' P Gro 1p plc

 Company Balance Sheet
As at 31st December 1987

1987 1986 1987 1986

Notes LOOO LOOO $000 $000
Fixed Assets
Tangibl e assets 11 221 40 415 75
Investments 12 224,372 21, 176 421 ,483 39,779

224,593 21 ,216 421,898 39,854

Current Assets
Debrors 17,062 9,742 32,051 18,301
Cash at bank a nd in hand 1,577 2,912 2,962 5,470

18,639 12,654 35,013 23,771

Creditors: a m ounts falling du e \\'ithin o ne yea r 16 (5,892) (3,8 11) (ll,069) (7,159)

et Current Assets 12,747 8,843 23,944 16,6 12

Total Assets less Current Liabili ties 237,340 30,059 445,842 56,466
Creditors: a m ounts falli ng clue aft e r more than
one year 17 (1 ,700) (1,781) (3,193) (3,346)
Provisions for Liabilities and Charges 18 (55) (103)

et Assets 235,585 28,278 442,546 53,120

Capital and Reserves

Called-up share ca pital 19 3,670 1,139 6,894 2,140
Share premium 20 8,396 15,772
Merger rese rve 20 231,827 17,947 435,487 33,713
Profit and loss acco unt 20 88 796 165 1,495

Total Capital Employed 235,585 28,278 442,546 53,120

Signed o n be half o f th e Boa rd o n n th May IYHH

RE. Lerwill
Directo rs
M.S. Sorrel!
The main re po ning c urre n cy o f the Cro up is the pound sterling and the accounts have been prepared on this
basis. Solely fo r co n ve ni e n ce, th e au. ount s se t ow o n pages 89 to 93 are also presented e-xpressed in US
dollars using th e a pproxim a te a verage rate ((lr the yea r for the p rofit and loss account ($1.68 - Ll), the rate in
effect on 31st Dece m he r IYH7 fort h e ha lance s heets ($ 1,8785 - LI ), and a combination of these for the
statement o f so urce a nd a rpl ic ~ 11 H \fl , )I 1unds Th is translation should not be construed as a representation
that the po und ste rling amo unt " au ua ll y repre~cn t , )r n )u lcl be convened inro US dollars ar the rares
mdicated.

The accompa ny m,\!, nuln /un11 u n llllt ).; tu/ f1t.lll, •/ d11.' hu/UII< ,. .; h.-Cl

WPP Group plc 91

 Consolidated Statement ofSource and Application ofFunds
For the year ended 31st December 1987

1987 1986 1987 1986

£000 LOOO $000 $000
Source of Funds
Profit for the financial year 7,085 1,10 1 11,903 1,850
Add items not involving the movement of funds:
Depreciation 6,825 366 11,466 615
Increase (decrease) in deferred taxation and
other provisions (4,921) 300 (9,244) 564
Profit on disposal of tangible fixed assets (189) (318)

Total funds from operations 8,800 1,767 13,807 3,029

Funds from other sources:
Increase in creditors due after more than one year* 88,608 2,534 166,450 4,760
Increase in minority interests* 363 702 682 1,3 19
Increase in deferred taxation and other provisions* 78,898 148,210
Proceeds from issues of ordinary shares 205,155 8,260 344,660 13,877
Proceeds from sale of tangible fixed assets 1,874 923 3,148 1,551
Value of warrants attached to loan notes 1,488 2,500
Exchange movements 19,004 3,391 (674)
Shares issued as part consideration of the acquisiti on of
subsidiaries* 2,860 18,3 32 4,805 30,798

407,050 32,51 8 687,653 54,660

Application of funds
Dividends paid 317 168 533 282
Purchase of tangible fixed assets* 90,168 4,866 151,482 8,175
Purchase of fix.ed asset investments* 3,464 5,820
Goodwill arising on acquisitions of subsidiaries* 293,915 27,335 493,777 45,923

387,864 32,369 651,612 54,380

Net Source of Funds 19,186 149 36,041 280

92 \XII' I' Group plc

 1987 1986 1987 1986
£.000 £.000 $000 $000
Increase (d ec rease) in n e t c urre nt asse ts*
Stocks and work in p rog ress 36,110 1,151 67,833 2,1 62
Debtors 235,984 10,891 443,296 20,459
Assets held fo r resa le a nd iiw estmc nt s 114,233 1,040 214,587 1,954
Creditors: a m o unts falling due ,,·ithin o n e year (334,266) (1 8,323) (627,919) (34,420)

52,061 (5,241 ) 97,797 (9,845)

Movements in n e t liqui d fun d s:

Cash at bank a nd in h a nd 64,062 7,435 120,340 13,967
Bank loans and ove rdraft s (96,937) (2,045) (182,096) (3,842)

19,186 149 36,041 280

*TI1e effec t of the acquisiti on o( suhs id ia ries on the above statement was as fo llows:

1987 1987 1987 1987

£.000 $000 £000 $000
Net Assets Acquired: Discharged by:
Tangible fixed assets 80,890 135,895 Shares 2,860 4,805
Goodwill 293,915 493,777 Cash 389,562 654,464
Investments 3 ,324 5,584
Net curre nt asse ts 118,766 199,527
Creditors: due aft e r
one year (23,802) (39,987)
Provisions fo r liabiliti es
and charges (80,469) (135,188)
Minority inte res ts (202) (339)

392,422 659,269 392,422 659,269

The main repo rting c urre ncy d th e C roup is the pound sterling and the accounts have been prepared on this
basis. Soleiy fo r co n ven ien cc . th e accounts set out on pages 89 to 93 are also presented expressed in US .
dollars using the a p prox imat e average rate fo r the year for the profi~ and loss account $1.68 - £.l ), the rate
111

effect on '3 1st Dece m he r I Yt\7 fl,r the ha lance sheets ($ 1 8785 - U ), and a combination of these for the
statement of so urce a nd a ppl k a t io n d funds. This translation should not be construed as a represenmtion
that the po und sterling a m u unt s aL·t uall y representc'r could be conven ed into US dollars at the rates
indicated

The accompany n1,..; nc> ll' \ fonn li iJ nl lt',l( i ll l p<~ rr (lj rh is swr,·mclll

\'i'I'P Grtlup plc Li 3

 Notes to the Accounts

l. Basis of Consolidation
The Company has taken advantage of the ( 1986 Ll l 2,000) o f th e consolidat ed profit for the
exemption in the Companies Act 1985 s.228 not to fin ancial yea r has bee n d ealt w ith in the accounts
present its own profit and loss account. Ll ,629,000 of th e Co mpany.

2. Segment Information
The Group provides marketing services both on a
national and a multi-national basis. Contributions
to Group tumover by geographical area were as
follows:
1987 1986
£000 £.000
United Kingdom 74,184 17,939
North America 144,729 3,760
Rest of the World 65,169 1,986

284,082 23,685

3. Other Operating Expenses

1987 1986
£000 £.000
Administration and other operating expenses 198,268 4,618
Other operating income (800) (116)

197,468 4,502

94 WPP Group plc

4.lnterest Payable and Similar C harges
1987 1986
£000 LOOO
On bank l oa n ~ a n d '" crdr.tl h .. ln d ,,t hcr j ,,;~ n ~:
-repaya ble ,,·ithm fi , ·L· , . L'; lr~. h,· lll ~ t. dtn L' nt ~ 246 39
-repayabl e ,,·ithi n li \L" , . L';l r~. lll\l h\· i n ~ t ;dtn L' Il l~ 9,701 120

9,947 159
On all oth er loa n:-. 1,129 36

11,076 195

Included in 1hc a lx,n· i ~ 1h e ini crc ~ I c km c ni ,,f

charges paya ble under finan ce lc ;be ~ (;md hi re
purchase co lllr ;lU ~) a nw uming ''' L) )"i.l\1l1 \ lLJ8(Y L33.L1l1L1).

5. Profit on Ordinar y Activi ties before Taxation

Profit o n o rdinary a,: li \ ili e~ hl'f,, rc I;l:-;;Hi l'll i ~
stated afte r ch a rg ing:
1987 1986
£000 LOOO
Deprec ia tio n a nd ~un ,, unl ~ ''Ti llc n u!l
- ow ned ta ng ible fi :-;cd ~b~ c l ~ 6,039 366
-assets held under fin a nce lca~c ~ ;md hm· purchase
contrac ts 786
Operating lease rc 111 a l ~
-plant a nd m ac hin e ry 2,299 212
16,556 170
-pro perty
Hire of pl a111 a n d mac hin ny 261
Staff cos1s (sec no 1c 6) 125,228 4,250
Auditors' re muncra1io n 834 201
Notes to the Accounts
Continued

6. Staff Costs
a) Particul ars of employees (i ncluding exec uti ve 1987 1986
directors) are as shown below: LOOO woo
Employee costs during the year amounted to
Wages and salaries 110,698 3,764
Social security costs 8,891 353
Pension costs 5,639 133

125,228 4,250

The average weekly number of persons empl oyed

by the Group during the year was as foll ows: 1987 1986
Number Number
United Kingdom 1,200 41 8
Overseas 4,166 8

5,366 426

b) Directors' remuneration:
Directors of the Company received the foll owing 1987 1986
remuneration: LOOO woo
Fees as directors
Other (including pension contributions) 393 87

393 88

The directors' remuneration shown above (excluding

pensions and pension contributions) included:
Chainnan Nil Nil

Highest paid di rector 241 34

Other directors received emoluments (exc ludin Q,

pensions and pension contributions) in the
following ranges: 1987 1986
Nu m her
Nil 2
U0,00 1 to £.15,000
U5,00 l to £.20,000
£.20,00 1 to £.25,000
£.30,00 1 tO£.35,000
£.95,00 1 to L I00,000
Rem unerat ion to the highest paid directo r in 1987 excludes L97,000 111 respcu ut 19Hh \-vhi ch was approved
suhsequen1 to the date of signing the 1986 acco un ts Jn JYH6 1unh n emolum en 1s amounu ng w L'5.L)L)0 were
wai ved by 1wo directors
cl Higher-paid employees
J! uring 1he year. one employee of 1he C.ompany rece lvec.l iTmuncrauun 111 the range L-+"i L)L) i - L"iL1.L\1L1 and
one employee Ill the range L30,001- US,OOO ( IYHo none i
7. Tax on Profit on Ordinary Activitie s
1987 1986
£000 £.000
The tax cha rge is h ~~o-,cd ,, n 1h e pr,> \11 \,> r 1h e , . l,~l r ~m d

comprises:
2,649 723
Corporatio n tax at )')'}., \ \ <..Jt-\(> )')';,, Ill -+(1'\,)
(7,340) (2 16)
Deferred taxatio n
11,501 106
Overseas taxati o n

6,810 613

8. Extraordinary Items
Extraordin ary ite tTlS in \ <..JH(> rcLn cd Ill ~ l c ti u n s taken to
rationalise the ac ti \' iti cs ut ccruin suhs i d i ~ lri cs acq uired
during that yea r

9. Dividends paid and proposed

1987 1986
£000 £.000
548 95
Interim paya ble of\ SOp p e r sh a re ( \ 986 \ 25p)
1,789 222
Final proposed of 4 90p per s h a re ( \986 \ 95p)
Pay ments to h olde rs of sh a res issued in 1986 and 35
ranking for the \985 fin a l di vide n d

2,337 352

\\VP Gro up pk 97
 Notes to the Accounts
Continued

10. Earnings per Share

The calculation of earnings per share is based on of 22,083,7 H ( 1986 8.075.690 shares). The
the profit before extraordinary items of £.7,085,000 weighted a\·c rage fl1r hoth yea rs has been adjusted
(1986: £1 ,069,000) and the weighted average to take accoun t of th e right s issues in 1986
number of Ordinary shares in issue during the year and 1987

ll. Tangible Fixed Assets

a) Group
The movement in the year was as follows:
Land and Buildings
Long Shon Plant & Fb:turrs c~ Moto r
Freehold Leasehold Lease hold Madrin cr:v Fittings Vehicles Total
£.000 £.000 £.000 £.000 [.000 lOOO £.000
Cost or valuation:
Beginning of year 2,147 88 569 1,905 1,6 15 929 7,253
New subsidiaries 7,878 4,094 40,580 1,668 25.3-+5 1,325 80,890
1,486 316 1,726 57-+ -+,0-+5 1.13 1 9,278
Additions
(429) ( 11 2) (883) (322) ( I ,9-+9) (635) (4,330)
Disposals
Exchange adjustments 130 (155) (5 ,48 1) (155) (2,985) (1 03) (8,749)
Revaluation 1,474 1,474

End of year (see below) 12,686 4,23 1 36,5 11 3,670 26,07 1 2.6-+7 85,816

Depreciation:
Beginning of year 35 4 93 1,044 891 385 2,452
190 389 1,744 728 3.287 -+87 6,825
Charge
(225) (14) (558) (300) (1.158) (39()) (2,645)
Disposals

End of year (see below) 379 1,279 1,-+72 3,020 -+82 6,632

Net book value

12,686 3,852 35,232 2. 198 23,051 2. 165 79,184
31st December 1987
2,112 84 476 86 1 724 5-+-+ 4,801
31st December 1986

Leased assets included above have a net book value of £.322,000 (1986 CH 2.000)

Basis of valuations: Plant and machinery (incl uding fixtures and fittings) are shown at cos t. Land and
buildings include certain properties professionally revalued duri ng 1987, by !v!essrs james An drew Badger
(Surveyors & Valuers), on an open market, existing use basis The historic gross LOSt L)f such land and
buildings is £1 ,859,000 (1986 £.333,000).

98 WPP Group plc

b) Company
The move m e nt in th e yea r \\·as as td lo\\S
Short
Leasehold
Land & Fb:rures & Motor
Buildings Fillings Vehicles Total
£000 £000 £000 £000

Cost o r valua tio n :

14 30 44
Beginning of yea r
29 95 158 282
Additio ns
(25) (25)
Oisposals

29 109 163 301

End of year

Depreciatio n :
1 3 4
Beginning o f yea r
Ch arge 29 20 27 76

29 21 30 80
End of year

Net book value

88 133 221
31st Decembe r 1987

l3 27 40
31 st Dece mbe r 1986

WPP Group plc 99

 Notes to the Accounts
Continued

12. Fixed Asset Investments

a) Group
The following investments, acquired on acqui sition
of subsidiaries during the year, are included in the
net book value of fi xed asset in vestmems:

1987 1986
LOOO LOOO
Investment in related companies 1,607
Other investments 1,857

3.464

b) Company
The following are included in the net book value of
fi xed asset investments:

1987 1986
Subsidiaries at cost: LOOO (.000
Beginning of year 21 ,176 376
Additions 203,196 21,1 73
Disposals to subsidiary (373)

End of year 224,372 21,1 76

At 31st December 1987 the Company direc tl y or in direc tl y held 100% (except'' here indi cated) of each class
of the issued shares of the following subsidiari es. Companies marked \\·ith an * were acqu ired subsequent to
31st December 1987 (see note 22) The a([ivity and coumry of operation and registration of the principal
subsidiaries or divisions is given below

Acri viry Couut ,:v

Company
Strategic Marketing Services
The Henley Centre for Forecasting Lim ited* Strategic Ma rkeung Consultancy England
Media Advertising
j Waiter Thompson Company Media Advertising USA
Lord, Gell er, Federico, Einstein, Inc. Medi a Adve rtising USA
Public Relations
Hi ll and Knowlton, Inc. Puhli c Relatiuns USA
Market Research
MRB Group, Ine Markei Resea rch USA
Non-Media Advertising
Busi ness Design Group Limited Graph ics & Des1gn England
Greaves Hall Li mited Graph icS & ne~ ig n England
Oakley Young Associates Limited Craph1 cs & Design England
Sampson Tynell Lim ited ( ,raphlc" & llco; Jgn England
Sicljakov, Berman Go mez &: l)an n n~ C. raphil ~ & J )c~ i gn LIS A

lOO \'WP Group plc

 Coun!l)'
Company Acr ivitv

Non-Media Advertising (Continued)

England
Stewan McCo\1 \ sSLK iat c:' p k ··· C raphics & Design
USA
The Walke r Gro upt CN \Inc. G r~1phi cs & Design
GL!phics & Design England
VAP Group Limited
England
The Grass Roo ts G ro up Pl .C ( '1("\';., '"'· n ee\) lnccllli\T & i\ lotiYation
England
P&L Intern atio n a l \'ac ll io ncrs Limn cd lnccmive & Moti,·ation
England
Mando Marke ting Limi tL·d S~1le s
Promotion
Scodand
Scou Stern Assoc iat es Limit e d Sales Promotion
USA
Einson Freeman. 1nL·* Sales Prom otion
England
MetroVid eo Limited Audio Visual products/ services
England
The Might y Mc.w ic CLl iTijXmy Limited Film & Video production
Specialist Communications
Anspach G rossm a n Po rtugal In e*
USA
Corporat e Identity
Brouillard Co mmun ic atiLln S. \n e
USA
Business to Business Advertising
The Entertainm e nt G wup
USA
Ent ertainment Industry Advertising
England
EWA Limited * Database Marketing
USA
Harvard Cap ital G rou p . \n e Financial Services Marketing
USA
Hispani a Ad ve rti s ing, In c. Hispanic Advertising
USA
J Waiter Th o mpso n Direc t Direct Advertising
USA
JWaiter Tho mpso n H ealthcare Healthcare Adve rtising
USA
Mendoza, Di ll o n & Asoc iac\os, In c. Hispanic Advertising
USA
Pace Communi cation s Inc. Real Estate Marketing
USA
Reese Com municatio n s In c. Public Affairs
USA
Targeting Syste tTIS In c. Direc t Marketing
USA
Thompso n Rec ru itme nt Adve rtis ing, Inc. Recruitment Advertising
USA
Tromson Monroc ;\d vc nis ing, Inc. Travel Industry Public Relations
Manufacturing
England
Alton W ire Pro duct s Limited Manufac ture of wi re products
England
No rth Ke nt Plas ti c Cages Limited Manufacture of wire and sheet metal products
England
Staffordshire H o ll owa re Limited Manufac ture of aluminium products
England
Refrigeration (Bourne m o uth ) Limit ed Sale and installation of shopfitting equipmenr
Holding Companies USA
Raso r CommunicaL io n s Inc. Holding company for US services companies
England
Rasor Communicatio n s Limited Holding company for UK services companies .
England
Wire & Pl as tic Produc ts Limited Holding company for UK manufac turing compames

\'\1JP l~roup pk !Ol

 Notes to the Accounts
Continued

13. Stocks and work in progress

The following are included in the net book value of
stocks and work in progress:
Group
1987 1986
LOOO LOOO
Raw materials and consumables 398 440
Work in progress 36,247 430
Finished goods and goods fo r resale 1,275 940

37 ,920 1,8 10

14. Debtors
The following are included in the net book value of
debtors:

Amounts falling due within one year:

Group Compa 11y
1987 1986 1987 1986
LOOO LOOO LOOO LOOO
Trade debtors 207,863 I 0,20 1
ACT recoverable 1,270 10 1 1,049 195
Corporate income taxes recoverable 7,444 21 8
VAT and sales taxes recoverable 2,508 196 138 86
Other debtors 8,224 4 13 130 33
Prepayments and accrued income 6,962 364 2 -+
Amounts owed by subsidiaries 15,743 9,4 2-+

234,271 11 ,493 17,062 9,742

Amounts falling due after more than one year:

Gro up Compa11y
1987 1986 1987 1986
LOOO LOOO LOOO LOOO
Trade debtors 46 359
Corporate income taxes recoverable 543
Other debtors 5,1 82
Prepayments and accrued income 7,794

13,565 3'59

Total debtors 247,836 I I ,i-1'52 17,062 9.742

102 WPP Group plc

15. Assets held fo r re sale and inYc s tmc nt s
The fo\\o,,· inganwunt ,-, .lrL· m L·lu , kd mthL· net hook
value of asse ts h eld \,,r r,· ,,lk .md in,·c·s tmcms: Group
1987 1986
£000 £000
110,496 1,040
Freehold pro pen y hdd r,,r rcs~1k .. ll tn~1rkc·1 ,. ~1 l ua1 io n
3,153
Treasury bonds li sted L''·c·rsc·.ls .. 11 ,_. ,,:'-!
1,624
Unlisted im·cst m c nt s. ~ll u ''-1
1,040
115,273

. . . · acquired on the
Freehold pro pe n y held IL' ~" rc s~1k ~ll ) I s1 Dece m her 1987 compnses cen am properues . . l d din
. .. . - - . . .. . . . . ed sales IS me u e
acqutsnton ol j\Vl C.w up . In c. The c·sum~ll cd ta:-; habtlny assoCiated w1th the anuCJpat
the provisions for li ahi liti L'S ~md ,.- h ~n~es .
· · . £3 253 200. The
The market value olthc trcasur\ hl'ncls hsted overseas at 31st December 1987 was ' ' £162 4000.
.
d!rectors ' va luauon
· o 1· t l1c CrL' llP·s
. unli sted current asset investments at 31st December 1987 was '-' -

16. Creditors - Amounts falling due within one year

The following amo unt s a rc included in cred it ors
falling due w ithin one year: company
Group 1986
1986 1987
1987 £000
£000
£000 £000
Bank loan s an d overdrarts 98,996 2,059
388 105
Obligation s unde r fin ance \case s aild hire purchase contracts
Trade credito rs 228,974 5,554 291
780
Taxation and soc ial sec uri1y 6,271 3,393 2,342
5,145 3,388 317
Due to vendors of acquired companies 2,337
Dividends payable and proposed 2,337 317
10,259 735 791
Deferred inco m e 2,775
102,363 5,959 70
Other creditors a nd accruals
Amounts owed to s ubsid iaries ~
5,892 3,811
454,733 21,510

\'\TPP Group plc 103

 Notes to the Accounts
Continued

17. Creditors- Amounts falling due after more than one year
The following amounts are included in creditors
falling clue after more than one yea r:
Gro Hp Co mpany
1987 1986 1987 1986
LOOO LOOO LOOO LOOO
Bank loans 72,982 673
Loan notes with detachable wa rrants 6 ,497
Obligations under fi nance leases and hire purchase
contracts 418 11 7
Trade creditors 1,564
Corporate income taxes payabl e 1,044 154
Defen·ecl income 1,048
Other creditors and accruals 6 ,080 81 81
Loan note due to vendor of acquired company 1,700 1,700 1,700 1}00

91 ,333 2.725 1,700 1}8 1

The loan note clue to vendor of acquired company is repaya bl e a t any tim e before 3 1s t May 1991, at the
option of the holdet; and bears in terest at the rate of 8.5% per annum until the ela te o f repay m ent The ho lder
has indicated that it is not his current in tention to seek repay m ent prio r to 1s t Ja nuary 1989.
The loan notes with detachable warrants are repayable in eq ua l annua l insta lm e nts between 16t h April 1993
and 16th April l997 Alternati vely, under certain c ircum stances, at the o ptio n of Rasor Com mun icatio ns !ne
(a wholl y owned subsidiary of the Company), th ey m ay be repaid at any tim e aft er 16t h Apti l 1992. The loan
notes are unsecured and bear interest at the rate of 8.75% per an num until the date of repayme nt Each no te
carries a wa rrant to subscribe for O rdinary shares of the Company to the prin cipa l a m ount of the no te. The
wa rrants will be exercisable at a ptice of l044p (after adjustmen t fo r the effect of the rights issue in Aug ust
1987) per share The total number of O rdinary shares in respect of w hi ch wa rra n ts w ill be issued is 875.000
Bank loans payable at 31st December 1987 in clude US$ I9 1 m illi o n of deb t ass um ed o n the acquisitio n of
JWT Group, Inc. This debt was repaid to th e otiginall ende rs by 29th Ja nua ry 1'188 a nd re fin a nced as fo ll ows
(a) Japanese Yen 13.1 billion (approx imate ly US$ 100 mil lion) thro ug h a li ve yea r no n-recourse loa n sec ured
on a freehold property in Tokyo (classi fi ed as an asse t held for resa le in note 15) An a m ou m equ iva le nt to the
value of this loan is classified with creditors falling clue w ithin o ne yea r in not e 16.
(b) US$ 160 million through a seven yea r un secured mulric urrency fac ilit y, 1·e paya hle in fo urt een equal se mi -
an nual instalm ents The analysis of borrowings se t o ut below rell ec ts 1he se repay m en! te rm s.
Interest is payable on these new facilities at variabl e rates linked to LIBOR

104 \X'I'I' Group plc

Analysis o f lo an s . lin ~m ce leases a nd hire purch ase
contrac ts:
Group
1987 1986
LOOO £.000
Borrowi ngs a rc re pa yable h y in s ta lm e nts as fo lkm-s:
W ithin I yea r - ha nk ll1an s 25,116 125
- lc<JSes ~md hire purc h ~1 sc 388 105
W ithin 1-2 year -bank loan s 13,544 126
- lc ~1 ses a n d hire purch ase 271 87
W ithin 2- 5 year - hank le1~111 5 37,216 379
- lc ~l SCSa nd hire purc h ~1 se 147 30
Over 5 years - hank l l1~m s 22,222 168
- loc\ll n cl tcs wi th d e ta c h ~1 hl c ,,.c\lT~\IltS 6,497

105,401 1,020

18. Provision s for Liabilit ies and Charges:

Provis io n s fo r liabi liti es and c h a rges L'Llmprisc:
Group Company
1987 1986 1987 1986
£000 £000 LOOO £.000
Deferred taxa ti o n 54,903 321 55 56
Reco ve rable ACT (32 1) (56)
Pen sio n a n d o th e r p w,·ision s 19,816 300

74,719 300 55

Deferred tax h as h eL n pro,·idee! to th e ext ent that the d irectors have concluded, on the basis of reasonable
assumpti o n s a nd th e int ent il1n s of m an agem ent. that it is probable that liabilities will crystallise. No
provis io n is m ad e f,,r ta:-; th at \\·o u ld ari se on the remit tance of overseas earnings.

Group Company
Pension
Dcfemd c.~ orher Defem:d
provisions tCLWlt ion
wxatiou
1987 1987 1987
£000 LOOO £000
Th e m ove m e nt 111 pn l\ ·t,-, Jc' n" L·,, mpri scs:
300 56
Beginning o l yt'a r
Bala n ces assu m ed' 111 .tc L\ lll " lli c' llc •l ,-, uhsid iari es 60,909 19,560
(7,340) 2,419 (l)
Ch a rge d ( u-eclit cd ) I<' prc•I it .md luss ,,,.,·,,unt
Tax rela ted tP JT\ ·;-llu;ll l<' ll ,, , .J,-,,-,l' l" 442
Exc h a nge ad ju.., Jlll <'ll t.., 892 (2,463)

54,903 19,816 55
End o l year
Notes to the Accounts
Continued

19. Called-up Share Capital

1987 1986
L (.

AULhorisecl:
44,800,000 (1986 14,000,000) Ordi nary shares of lOp eac h 4,480,000 1.-+00,000
300 (1986 300) Deferred Redeemable Conve rtibl e shares
of Ll each 300 300
20,000 (1986: Ni l) "A" Ordinary shares of lOp eac h 2,000
14,000 (1986 Nil) "B" Ordinary shares of lOp each 1,400

4,483,700 1.-+00.300

Alloued, called-up and fully-pa id

36,669,696 (1986 11 ,390,698) Ordinary shares of lOp eac h 3,666,970 1.139.069
300 (1986: 300) Deferred Redeemabl e Co nvertible shares
of U each 300 300
15,000 ( 1986: Nil) "A" Convertible shares of lOp eac h 1,500
14,000 ( 1986 Nil) "B" Convertible shares of lOp eac h 1.400

3,670,170 1.1 39.3(19

During the year the Company made the foll owing
allotments of Ordinary shares:
- 379,171 shares with a nominal value of D7,917
and at a premium of L2,819,581 in consideration
for th e acquisition of subsidia ries.
- 588,957 shares with a nom inal value of (.58,896
and at a prem ium of [4,741,104 whic h were placed
for cash pursuant to a resolution of th e Company
in general meeting.
- 24,310,870 shares with a nominal value of
L2,4 31,087 and at a premium of [210 ,289,02 5
through a rights issue to shareholders.
The Deferred shares we re issued to the venclo t·s of
certain companies acquired during 1986 and 1987
and are conve rtible to Ordinary shares oft he
Co mpany on elates between 30thj une 191:-lii and
31st May 1992. Th e number of Ordinary s h ~1 rcs
int o \\·hi ch the Dcle tTecl s h ~1res m::~ y he CL1n\-crted
is dependen t upon th e Jew· I of future profitahi lity
of the company acqu ired
Opt ions ha ve been gra nt ed under the\ \TP Ct"c' LIP
pl c Execu ti \·e Slu re Option Sc heme Ln ·cr .1 tlll<li L)I
I ,560,9-+ 3 ( 1986 3 )1:-1,765) lOp Ordina t·y :-; h,l rcs,
exercisa ble het\H'Cn ILJI:-19 and IL)l)l:-l Jt prt cc~ per
share ra ngi ng fro m 3l)Op to 1:-12 3p
During th e year il 1<1n nlll es \l'l'rc ts,; ucd \\ 11 h
de tac hable \\·a tT<llllS ttl subsnt hc lur l l rdt n,tt·y
shares in the C:ompan y. fur ther detatl ,; . 11 ·c
JXllviclcd in note 17
20. Reserves
a) Group
Movement s dun ng t h,· ',.,, r ' ' ,.,,. ,h \,>I\,'"."
Capi cal c~
Property Cunr ncy
Sll <1n· llfn;~a Rcvaltwtion Trrmsla tion Pmjit&
Prr miurn Reserve Rese rves Reserve Loss Account

Balance at bcgmnmg ,, j 'c.t r

Ll)L)0 L00L) LOOO woo woo
8.306 (9.,88) 689 (-+3) 2,027
Premium o n sh a re·:-- 1">:-- ll,·d dunn g the· , ·,·.tr
(note 19)
-for cash
-for acqui s iti o n :-- 2 1').L130
Expenses o f i::-.suc·:-- ,,, :-- h;tt\':- 2,8 20
( 12.336) (30)
Goodwill ari s ing,> nu,n ,_,, Jtd.t tt , ,n \\Tittc·n ,, l'l
(293,9 15)
Share Pre mium l'<llkc lkd undn L·,,un ,;, llkti,,n
( 2 I I .LNL)) 2 11.090
Unreali sed ga in <lri s ing ,,n rc,·.du,ut,,n ,, j ;b,;c· t,;
1,032
Realisation o f n:, ·a lua u, ' ll I'L'"''~'''L'
(188) 188
Provision fo r righ ts tu sh.trc:-- <ltt<~c hmg tcl " '<llT<ll1t s
Exchange t-c,·a lu<t t it >n 1,488
10,255
Retained pro lit Jc, r th e )'L'<tr
4,748

Balance a t e nd ul yea r
(89,-+ 23) 3,021 10,212 6,963

Goodw ill ari::-. i11 ,1.!, L' ll 1h,· .tcq u i~it i,, 11 , ,J.J\ \ 'T Croup. 1nc. <l lllLlllllt cd to (277,536,000.

b) Compan y
Move me nt" dun ng tlw yc-. tr wn,· .1,; k'I1''"S
SI! are Merger Prv.fit &
Prcmiwn Resen•e Loss AccOIIIIt
woo woo woo
Balance at hcginnlllg , ' ' ' ,._, r 796
8,396 17,947
Premium un -.,h,trc-., h:-ucd d u nn g th e \'L\ tr
(note \9 )
- for cash
215.030
- for aC ljU I;, lll (l il ">
2,820
Ex pense;, o l h-,u,· ... , >I -,h.trc ... (30)
(12,336)
Share Prcm tum, .ut ,,· Jkd under l'l'll rt ,;,ttkti,,n (21 1.090) 211 ,090
Profit fur th e ) l'<t r 1,629
Divid end" p<t td .md I' '' ' Pl "'l'c l (2.337)

Bala nce at end l d ',., ,, 231.82 1 88

Unde r court -,,\I ll Ill 11 . tilL · h. d.tt1l'l' l111 the ~h,trc prcmtum . . '' ..cb- c,"lllccllecl .ahneI trans fcrredreserve
1.0" non-
1
<IL'Clllii1L , croer .
c\istrihutah\t- .., j1L 'l i,t\i c'-,l' l\l' \\ hilh \l>l'l 'L111\'Cil iL' Il ll. . 1l,b · · cli S·closed
· - 11llll . above
. ,,.ttn· t .·lCmtthC" S[JCCia\!'CSCl'\e.
.
GoocJwtil Cll'h lll ,t: •>ill <>ih•> ltll.lltc'llll11 hl· ,lllll 1 lllllc11 l -' 11 · L1L)L) h '· t~ - hccn \\Tlltcn ° ag,uns
 Notes to the Accounts
Continued

21. Guarantees and other Financial Commitments

a) Capital Commitments
At the end of the year, capital commitments ''-ere: Group Co mpany
1987 1986 1987 1986
£.000 LOOO
1,258 -l- 50
1,173 -l-0

2,431 -l-90 10

b) Contingent !:abilities
Further consideration amounts, payable in cash and Ordinary shares of the Company, may become due to
the vendors of certain companies dependent upon the level of profitabilit y of those compan ies ove r va rious
periods up to 30th November 1993 The quantification of these future payments is dea lt with in note 22

c) Lease commitments
The Group has entered into certain non-
cancellable leases in respect of pl ant and
machinery The LOtal annual rental (including
interest) for 1987 was £.2,048,000 (1986
£.165,000), of which LN il (1986 [ il) was
applicable to the Company The lease agreemems
provide that the Group will pay all insurance,
maintenance and repairs. The Group may
continue, at its option, lO use the pl ant and
machinery after the expiration of the initial lease
period at a nom inal rental.
In add iti on, the Group leases certa in land and
buildings on short term and long term leases. The
annual remal on these leases for 1987 was
£.16,556,000 ( 1986 L1 70,000). The rents payable
under these leases are subjeCt to renegot iation at
va rious intervals spec ifi ed in the leases. The Group
pays all insurance, mai ntenance and repairs of
these properties
The minimum annual rentals payable in 1988
under the foregoing leases are as follows:

Plan I c.rul
Properly Machine•y
LOOO LOOO
In respect of operating
leases which expire:
- within l year 1,750 I.G7 4
- with in 2-5 years 11,1 24 2.3-l-9
-after 5 years 16.9 37 785

29,R I I 4,208

d) Pension arrangements
Many pension sc hemes are opera1ed by 1he co mpames ,,·1thll1 ilw ( ol\lup r\u u a naiiT \ · ie\\ · ~ ,,1 ,dl m.ucr1.d
schemes were undertaken fo ll ow mg the acqui sition of j\VT ( orllu p. Im and <~ ppr,•p ri alc pru\'b lllll made

IOH \X I'I' C,n•up plt

22. Subsequent Ewnts
a) On IL)t h l 'chru~ tr\ 1LJ~~ t h,· _.
. .. I ( 1I L)ll j1 "1 . . I ,. The acq uisitions referred to abo\'e and earlier
an lllllla pa\"lncnt 111 Ch h ul .. · Llt liiiTL. c'r
·. · . ~ 12 ·1\~l\l)l)l) I -· acquisitions (excludingj WT Group, lnc) may give
emu e 1ssucd ~ h ~ trL' c 1pu.d ,, 1 . . · tk
.\n ,.. p t ·I1 c· rise to fun her consideration amounts, resulting in
Ponugalln c -1 '\:n,· y,,1-J- 1 • L '1\bs m ~m
. . ' . ' )~hl'( 1l'L)!"j)) ·· , · .
bus mess ' t.llc 1dentll ,. good" ·ill. in addi tion to the initial paymems
rdcrrcclto above. Any furth er payments will be
b) O n 6t h r\p rill l)~~ tlw c 1 payable in cash and Ordinary shares of the
. . . ·' ' 11 P ~ 111 \ ' .1 . .. . Co mpany clependem upon the level of profitability
an llllttal pa,·mcnt in et ·h . I , · LCJ U11cd . IL'r
, • ,.. .I ne sh.u·. . .
L6,000,000. the L' lltire i~~LlL'll _ . . L" t<.'tallmg of these acquired entities over various periods up
"l 1 ll cc · ·
Stewan 1\VC·l, ll \ · · . · .lptta 1,,, to 28th February 199+ lt is not practicable to
'- - r ""'-' Li,ll c~ pk. ~~ l
graphi cs and c.lco;. i•'n estimate \\'ith any reasonable degree of certainty
,...,
n ,
11111 ~Ill \ ". .uncbn hasc·c.l
the total additional consideration to be paid.
c) O n 2 1st ;-\pril I L) ~~ tlw C. Ho" ·evet: the direc tors estimate that the maximum
. . . J[ '-'llp ~ I L'l . .• I ,.
tnlllaljX1)' In ent in c-h ll . I _ Jll!I LL. ur an additional payments which may be payable in
' . ·lll l "l
1 'l .
. ' l l'~ IL)t ·lll "
$6 ,2-)0,000, the c nttrc
·
iss ue 1 . 1 ' Ill ,-. respec t of all subsidiaries (including those referred
. l "la re c- 111 1 -
Emson Free m an. In c.. a 1\:ew . __ · Ita '-' 1 to above) would amount to:
prom otio n com 1x m y. .le I""'' h-1 .
, ·:-,cc ~a . I . Ics £000
Vv'ithin one year from
d)_ On 30th Ap ril ILJH8 the Cu m am . . _.. _
31st December 1987 14,708
an tnll! al paym ent in cash . I _ P , ·llCj UitLd. for From t\\"O to fi ve years 89,761
[2 883 . anc ~h ares t<.Hallin" Over fi ve years 22,781
, ,000. the entire iss ued sha r . _ _ _"
Henl ey Ce nt re for Force-\ - . . c capu.ll of The
, ::.ttng Ltmit ed . L 127,250
based strategic ma rk et in, . , .1 Llll don
g LL)IlSLdtancy

e) On 6 th May 1988 the Co On rh e assumption that the vendors choose cash

. .. lllpany acqui red f .
an tnlll al pay ment in cash and I . . - . . L)t rather than shares where the option exists, the
[48000 - Sl ,1te::. torallm <>
, , 00. th e enure iss ued 1 "' future consideration payable would include a
L . d .. s la re capit'll dE\\ '--\
tmne , a database market in . ' ' minimum of LS-+,812,000 in shares, which
Malclo n, Essex. g company based in
ge nerall y will be retained by the vendors for a
minimum petiod of rhree years. Taking in to
account onl y profits from those companies entitled
to receive future payments, there would be no
reduction in the net assets of the Group over this
period.
Th e Group's cashllo\\' projections for r.he same
period. after taking account of (a) to (e) above,
indicate a net cash generation after taxation and
dividends considerably in excess of these
maximum contingent cash payments.

\\'PP c;,\lltp pk ll1l)

Auditors' Report

To the members of WPP Group pl c: and or the Grclllp pruli! ;tnd ~l1U rcc ;tllll ap plic.Hiull
of fun ds for the yea r then ended. <lllci n 1111pk ,,·irh
We have audited the accoums ser out on pages 8/ the Co mpanies ,\et 191-l'i
to 109 in accordance with approved Audi ting
Standards.
ln our opinion, the accoums, wh ich have been
prepared under the historical cost com·emion, as Anh ur ,\ nclcrscn & C:o
modified by the revaluation of land and buildings, London
give a true and fair view of the state of affa irs of the
Company and of the Group at 31st December 1987 6t h !\ lay 1988

Financial Calendar

Interim Statements for half-years ending 30th June Annual General Meetings arc held in London in
are issued in August. June.

Preliminary Announcements of results for Interim Dividends on Ordin ary shares arc paid in
fin ancial years ending 31 sr December are issued in January.
March
Final Dividends on Ordinary shares arc paid in
Annual Reports are posted to shareholders in May Jul y.
 Notice ofAnnual General Meeting

Notice is he re h y g J\\'nt h. u th<.· "<."\<.' 11t <.' <.'11th :\nnu,d 6) T,~ tL\nsac t ~m y other business proper wan
General l\ lc e tin g e' lth<.· 111<."111h<.T~ e' l \\ .Pi' l; re1up
Annual Ge nera l l\lcet ing.
plc \\·ill be h e ld ~\1 -llw :--a, ,,,. l lc11c'\. Str.md . \.e1nckm
'vVC2 o n 27! h )llill' 1Ll00 .tt 1 2l~l~ lh'c' l1 " ·hL' nth <.· lndusuial Estate
By O rder of the Board
foll owing O rdm~1ry h u slllc· ~~ " ·J\1 hL· t Llll ~.IL! <.' d
C F Sc hultc n Hythe, Kent CT2l 6PE
Secreta ry 6d1 May 1988
l ) To rece iw ~llld . i\ ~tppr,,,.<.'d .. tdelpt th e dirt'L" tu r,.;·
repon and ~tud i t ed ~ t~ll l' i lll' nt el l ,tn:e' l111h fe1 r tlw
year ended 3 \ s t l kc,·mhn \90/

Notes:
2) To d ec lare th e di,·id e nd l"l.' L·e'111111 c nd e d lw
. auen d 'and vote at. t1le
. d to
A m ember cntttle
the direc to rs
l'vlee tino m ay appomt. one or more proxies. to .
" .
atten d a nd , o n a poll, vore ms read of hml. A prox)1
3) To re-clcu
a) MrJR Sy m u nd s need not also be a member.
. , and the power of
b) MrjJ D Bullmu re and To be vahd the fonn of proxy h. hit is
c) Mr JA Q uc kh ·m o rney or o ther aut h OI.·tty, 1"fan)'
' ' under w IC f

as d irec tors. , . I . ·n d or officecopyo

sioned o r a notan al )' cei ti te h ffices of
0
such power or authont), s 1ould reach ct e ·aht
" · . 1 1

I at least torty-eto
4) To re-appo int l\ k ss rs t\ nhur An dcrse n & Co the Reoistrars of the Compan) I Id. a the
· red for 10 mo
ho urs bbefore d1e nme
.
as a udito rs of the C um pany ~llld tl' authorise th e
appom
.
m eetin o or any adJOU111111 ent thereof. 1 he
directo rs to fi x th e ir IT I11UJWr,ll itm .
b
The fo \lowino documents W I
·u be availab eat t
ekday
b lYon any we
And th e follo\\"ing Spec ial bus in ess \\"ill h e reois tered office of the Compat . s hours and
tran saued : b d . a normal busmes
except Saturday unn" . d of fifteen
. I
at rhe place o I t 1e meen noo for a peno. a·
To con side r a nd ilthuught fit to pass th e fd lowi ng
Spec ia l Resoluti o n : minutes before an d cl unt. ,a" the meeun".

. ac tions of each director

l ) A stare m em of the ti ans f the
5) Tha t th e d ireuo rs he and they arc h e reby . · the shares o
and his fami ly mterests m
empowe red purs u a m tu Sect io n ':)') o f th e
Com pany.
Co mpa nies Act l '0HS tc' make a llot m e nts o f equit y
sec uri ties as if s uh -seu iu n ~ l ) u f Sect io n 89 of the 's contrac ts orservice
1
2) A copy of the Compan) I . RE Lerwill, and
Compa nies Au I YHS did n <.' t appl y to a ny such . . M -GC Sampson, IV I . .
al lot m e nt prov ide d th a t thi s po wer sh a ll be lim ited pen ammg to 1 · · ' . wri[[en
. are no ot1lel h n one yea rs,
Mr M.S. Sorre 11 . Tll el e
to th e a ll o tm e nt uf equit y se<.·uriti es up to an
directors' service contracts of more L a
aggregate nomina\ 'a! u c o f l\ 8 3,000 and that this
duration.
powe r sh a ll ex pire a t th e r\nnu,1l Ge n erc1\ Meeting
of th e Co mpa n y tel h e held in 198Y save that the
Compa ny m''Y hdure s uc h ex piry m ake a n oiler o r
agree rn e m \\ h1 c h wou ld elr might req uire equit y
sec urities tu he a ll e'tted a fter s uch ex piry a nd the
direuurs m ay n<.'l \\ "ll h ,;ta nding s uc h expi ry alk1t
secu ri1 ies m purs ua n ce ,,\ ..;uc h lllln c1r agreemen t
as i11 h e pu\\·t·r u1 nkrred here by h ~1d nut expired.

\'\"PP Gn lltp pk \I I
 Strategic Media
Marketing Services Advertising

Henley Centre for ] Waiter Thompson Company No re lt A mcriw Offi ce: !ndoncsia.Ju lwna
Forecasting Ltd Corporac c Headqtw t·ters: J Waiter Thompson USA Italy Milcm. /~ont c
2 Tudor Street 466 Lexington Avenue 466 Lexington Ave nue japan Osalw, Titllv<'
London EC4Y OAA New York, NY10017 t\e\\' York, :\Y 10017 I<orca Srou I
Telephone (Ol ) 353 9961 Telephone (l 212) 210 7000 Telep hone ( I 212) 210 7000 i\ lalays ia /( uula Litttlflll'.
Mexico Mcxilo Citv
Robe n Tyrre\1 Bun Manning Jam es Pallerson
.\lwwg m,~ Dl rt"t:ror Chamncm
:"\cth crl ancls Amstcrdattl
Cluumum t~ Chtt'/ Ext'c 11 11\t' Of(lt o .

Ed Haymes J\\ (Jlra Tlltlmpson USA f\ c\\· Zealand Aucllluncl,

Exau/!\'f VICt: Prc~ul oll \Vcllingcon
fii1£JI1Cf and r\clnwm rra/WIJ Ca nada Offi ce.
1\:or\\'ay Oslo
Bill Thompson J Waiter Thompson
Exaul!Vc V JCL' Prt" ~ l(lCJll Pa nama El Domdo
Company Ltc\
.\lulrmmw•wl Accowlls and Busmns Pa raguay As unciott
Dnclopmt:nr 160 Bloo r Street East, Toronto
Peru Linw
Ontari o M4W 3P7 Canada
Europe Offi ce Philippines Ma nila
Telephone ( ! 416) 920 9 171
J Waiter Thompson Portugal Lisl>on
Company Ltd Ron Burns Pucn o Ri co Sunjwut
Prc ~ 1 do11 . ( tm,ula
40 Berkeley Square Singapore
London W I X 6AD South Afri ca Cup<' Tinvtl.
Telephone (01) 629 9496 Wodd\VIdc Offices:
.Jolw' t nl'slm tJ(
Arge ntina Buenos Ai t-cs
Spain 13au·clona, Madnd
ivlichae l Coope r- Evans Australia Melbmmte, Non.vood.
Prt~ulrnr Eu•flpr Sri L a n k <~ Colom/Jo
Subiaco, Sydn ey,
Sweden Scodllwlnl
Lacin America & A.sia-Pacific Austria Vienna
Swit ze rl and z w·id l
Offi ce Belgium 13tmscls
T~1 1 wa n Tclipet
j Waiter Thompson de Brazil Ri o dc janciro, Sew Paulo
Thailand Banghoh
Ve nezuela CA Canada Mont real, Timmtn ,
Turkey lsw n/1111, /::tHit·
Apanado 952 Va ncotii'Ct'
Unit ed l<ingdom
Caracas, Ve nez uela Chile Swlliago
L<mdon. lvlat~ c hcs ctT
Telephone (58 2) 913 544 Colombia 13ogoca United States Acl<ollu. Cl ttcug''·
Denm ark Copenhage n
Lee Presc hel /Jcc mit. L• 'S A n,~;ci<'s. Nn''
Dominica n Republic Sanc o
Yi1d1. Sun Frwu '-'' o
Domingo Field 0 /{i<cs Cl wt'louc. Cint'itttu tli.
Asw-Parific Souclt AJi·tw Offi ce
Ecuador Guayaquil, Qww Clcvcluncl. Dt~llo s. Dnt vn . D<' tntll.
J Walter-Thom pson Finl and Hclsinl1t Housl<'tl. lndwnctpolis. J<,msds ( HI\
Company Ltd
France Pan.,
3 I' Shut On Ce ntre lvlcmpltts. ,\;,·\\' (),-/cum .
Ge rman y /)LI.Isciclor/. Ftw1l1jun.
6-HHarbour Road Ol1it11tonw Ctl\\ Plt<ICH i.\ .
Ham/Jurg I~" lttti<Hlcl. Ro, hcscn : ~<tit Lt~llc
Wancha1. Hong t< ong
Greece Ac hrm
( ill<Se Louis
Telep hone (H52 5l 864 46ft8
Guat emala Cua ccnwla C. tl v
L'ruguay M•Jtllcvtd<'o
Don Thumpson Hong l<ong
Ve ne: ur la ( ·a rc!< u.'
/lr !'' id tt ll \ \111- Pd l l/h ) Otirll :\/lh tl Ind ia Jlu n,~;a lore . /3mHhu \; Cclll 111la.
Mudul\. ,\c 11 Dciltt

\\ 2 \\'\'\' ( rl"()ll\) pil

 Puhli c Rela tions Market Research

Lord Gellc r Fcder-ico Hill an d I< nowlt on In c MRBGroup

Hong Kong
Eins teinln c ( -,,,.,.,,.ur.· H,·udqwn·r,Ts: COiporatc Headquarters:
Ireland Dubli11
655 Mad tS\1 n ,\,·c· nu,· -+ 2ll l. c~ tn c:w n Ave nue 380 Madison Avenue
It aly Mila11. Rome
1'\e \\' Yu rk. :\Y l(l(l2 1 lew York, NY 10017
"'' " . y,, rk_ " y 1Ll017 Japan Toilyo
Tele p hone \ I 2 12) -+2 1 h ll'1ll T,· k ph,,nc \ I 2121697 5600 1\!alaysia Kuala Lw11pw; Pcnang ~elephone (l 212) 916 8900
Agi Clark Netherl ands Amstmlam
FrankSwmon
F.\1'< urn,· \'r t , · / ''~' 'lt f, · , l/
Ne11· Zealand Auclllaiid, Clunnnan (_... ClutjEx:tcu!l\t Offica

T im Ell io tt \llc/lillgtoll, CJuistchurch

L01tdo11 Office:
Cl11t'( ( >po tH 111.~ ( 1ft 11 ,., Astu-Pu<'l/i<' O[f ict'. Pueno Rico Sanjum1, Hate Rcy,
MRB Group Ltd
W ill iam \ \'a rck-11 Hdl .mcl l' n''"·lw n As ia Ltd Singapore
Saunders House, 53 The Mall
Prt·, rtfcnt 1'5 t h r:J ,,l, r. \ \ 'incisor House Spain Madtid
London W5 3TE
) 11 C J,,uccstcr Road Switze rland Zwich
Telephone (Ol) 567 3060
United Ki ngdom Lo11do11
T,·k plw nc· (t'52 5) 779025 United States A!la11ra, Austill, Tim Bowles L don
< Cl . ·(b:twli\'1? Offictr, on
Chmrman L'"' Ill_
Blvomfic/d Hills, BosiQII, Chicago,
Arnokl Tuc ker
p,,·,r,/ou ~<:, ( lnt'f E,,.t Hfrw OtJru ·r. Dallas, Dcnver; Forr Worrh, Worldwide Offices:
·\,tii-I'.J,rfr,
HottSIOII, Los Angeles, Mi11neapo/is, Gennany Fraiilifurt

Etm>p,·. r\f t·i,-u und ,\ fiddle Eas e New )'tJrll, Pi!lsbwg, P01·rlmtd, SI Greece Athws
M dr(IS
Olfi,-,· Louis, Sa11 A111011io. Sa11 Francisco, India Bombay, Calculla,' a '

Hi 11 and k no" Iton (UK) Ltcl

Sa ll]osc, Sa11ta Clam, Scalt/c, 1 ·cw Delhi
5- 11 Thed )a\ds Road Stamj{1rd, Tampa. \Va/tlwm, Japan Toilyo
Was hingto11 Sri Lanka Colombo
Lo nU lln \ \ 'C I:\ 8SH
United Kingdom Lone/all
Tc lc phl'nc (l)l l -+OS 8755
Uni ted Stares Plwcn ~~.
,vtiiiiiCapolis, New Yorll
/'r, ·,hf, -,1/ (~ l lu!'f E \ t 't ra nc 0//!t t'l . EW tiJ't'.
:\/1 lt dIll hi ,\l ~ti.l/, · bbl

oa,·icl \\\·nnc-ivlorgan
<...hurr llhtll. I tllh/,,n

\\ 't>lidll' idc O[ficn .

.-\u 5t ralt a Adcloiclc. B1·ishmtc.
Cun/ >,TI'll. ' lcl/>, >umc. Pcrr/1.
) vdnc\'
Bahrain Alunull ld
Bc lgtum Bn tsscls
f\ ra:il Ri,> ,1.-_funciro. Suo P, udo
l -anada Ti>rtH!lo. \[ntcOIII'lT
China B,·,jill,l!,
r rancT Pm'i.s
l;crmany /3'" '"· DusscidmJ
h ·ullll/111'1. H w11i> 1t r~

\X'PP G i\ 1llp plc lI)

 Addresses
Continued

Non-Media
Advertising
Graphics & Design Incentive c-·Mo tivo tion So les Pn ll ll tl l it ' ' I
Sidjalwv Bennan Sampson/ Tyrrell Ltcl Grass Roots Gro up plc Eimon Freeman I11 c
Gomez & Partners The Carriage Hall Pe nnyroya l Coun 305 RtlUie 5el·entecn
3727 Buchanan Street 29 Floral Street Station Road, Tring Para m us
San Francisco London WC2E 9DB Hert fo rdshire HP23 5QZ '.;c11 j ersey Ll7652
Californ ia 94123 Telephone (Ol) 379 7 124 Telep hone (044) 282 667-+ Telephone l l 201l 262 7 2l1Ll
Telephone (l 415) 931 7500
Martin Sampson, Terry Tyrrell David Eva ns Pjan r\nstall
jomrC h~c:fExa um·r s Own man(~ Chit'{ 1:.. \ lf ll fl\t" ( IJ,w Ill! m { - < /:t l
Nic holas Sidjakov
C rt'atl\'l D1rtc 1or
Ot ha office: London JciTrcy 1-.: ~kEI nea
j eny Berman Stewart McColl p,,·,,tl,·nt
(rt'al!\'t' Dl rt'c /Or
Associates plc
Flavio Gomez P&L Int ernational
64 Wigmo re Street Marulo Mad1cti11g Ltd
Vacation ers Ltd
London W lH 9Dj 100 High Street
1 Sherwood Streel
Walker Group/ CNI /ne Telephone (01 ) 935 4 788 \ \ 'a dclcsdo n. r\y lcshury
Piccadill y Circus
320 West 13th Street Stewart McColl Buc kinghamshire HP lti Ll jl'
London vV I V 7RA
f\:ew York. NY 10014 Charnncm C- Ch it.'/ E.\wuf n·r Telcpht,nc (0206 l 65 I I') I
Telep hone (01) -+ 37 00 15
Telephone ( I 212) 206 0444
Other office: Cli ll Ash. r\l.m Sclb:·
Phil ip Ch1isrey /ottll l .\/(/11 ! 1,~ PI.t.: /)u, ·, lt'l'
Ken Walker Geoffrey Reid Associates Chatrm tllt

42 Portland Place Laura Morga n Ot l1a ''1/i, ,._,: Bit t'sto. L<IJilltHi.
London W I I'! 3DG I'''
.\la11 axmx Dn f~
Other office Los Ange les /(" lwhiii.\IV(I rt / i

Telephone(OI) 631 4646

Business Design Group Ltd Scott Stern Associates Ltd
Cmporatc licadquartas· VAP Gro up Ltd H Nc ,,·ron Terrace
The Meeti ng House La ngford Lane Glasgow G3 7PY
Lewins Mead Kidli ngton Tclcphunc (LH I) 22 1 6titi2 1 -+
Bristol BSI 2NN Oxfordshire OXS ILL
Harry Sn111 . R<ly nw nd ~I nn
Telephone (027 2) 279 137 Telephone (08675) 546 1/ 2/3
/lut"t l''' '

Brian Key Tre vor jones

Chamncm C~ Clud l:.vt'( !U nt· .\ lcma:<:m,(! 0!rcl/ m

Ot her o{{!LCS. London, Read in,~. Greaves liall Ltcl

Snutlwmpton, Swindon The Old oac h House
Welli ngton Road
OYA Group Chelt enham
Blaby Hall Gloucester GL 52 2AF
Blaby. l.elceslcr l.E8 3FA Telephone (0242 ) 512 05H
"lelephonc (0533 1770 511
Malcolm Greaves. lrene Hall
Paul Oak! c). Dav1d Young /tlllll( hii ·J / · \!' tl l lH!'\

/•l lllf \ftUJii_\!111)..: ()pi /Ill

114 W PI' (_,roup pk

 Spl'l' iulis/
A!1dio \ ' i s tl td { - \ ·t,k••
Cr1111 1l ll11l iUI t ions
CO illi l ll ii!ILdlltlil '

Merr·o Vidco Lirlli rccl

) Waiter Tlwmpson Dir-rcr
1 Waiter Thompson
The Old B.lu ''' I ·,,, " 'r' Healthcar-r Group
-\ 2l) Lcxington Avenue
57 -Sl) Crc.ll ,,dlt'll' "l r,.,., -f66 Lexingwn Avenue
1'\c" York. NY 10017
Lond t'n ~L I ,111" New York, 1\TY 10017
Telephone\ I 212) 210 8++ I
Te\cplwnc tt1 1 • c12 :-' 2\ 1:-':-' Telephone (1 212) 210 7400
b rl Bahler
Da \· Jd l'acY Prt',tclou John Stevens
.\ft~ Jhl,~u 1 .~ p, ,;. 1,,.

The Mig hty lvlo vic

Co m pa ny Ltd
Bm uilla n l Contmwti u Hions
-\ 2 L) I t':\ ii1)C_\Ll ll r\\'L' I1LI L'
" ' " 1\ 'rk '\Y IL1l117
\\ brldwidc Offices:
Austra\ia Mclho11me
Canada Tt>wnro
=-------
Cl!mnnml

Worldwide Offices:
Germany Fran/iftirt
14 Li ,·onla ~tiTL'I Mexico Mexico City
Tc·kph,,n,· \ I 2 121 0(17 03L)() France Paris
Lo ndon \\' 1\ ' W l l Netherlands Amsterdam
Ge rmany HamiJ\Irg
Telc phu nc (t111 -t N -t )/'1 \.u n ,· , h ',; IL' r Uni ted Kingdom London
l '•, ·q,:,·nr Greece Athens
United States NewYor/1
Da\'Jd Hug\t ,·, Hong Kong
.\fan a~111 ..; ( l11r , I• "
lieu-van! Cap it al Gro up !ne Italy Milan · eut
Tirom psort Recnatm
-\L) Exc k1n gc !'LiLT japan Tol<yo
Advertising /ne
~ Llllc' NYi Ne therl ands Ams1crdam d #600
4201 Wilshire Bou Ievar
\:,·w y,, rk. \: Y l(1L1L1 5 South Ahicajohan ncsbwg Los Anodes. California 90_010
T,·k ph ,,nc \ 1 2 12) 5 H 07t10 United Kingdom London. o 9' 7 81J0
Telephone 0 213) .> I
Ma nches ter·
\)aY id Ccli,·htn
j',, ·,z. lt-•1/
nitecl States Chicago, Don Robenson
Prts1dc:nt
Los Angclcs, New Yorll,
·rquc
San Fra ncisco Other offices: Alb uquc '
Mc ndo:: a. Dillort . ore Boswn,
I
Atlanta. Ba wn '
C.~ Asoeiados !ne
EWA LUI C/Jicago. Clcvdmrd. Dallas.
-\N-\'i (.. lac :\ rthur c ,,un nv.:r OctrOI·1· Harr.1'rm·d ·
Full bridge Quay, Morclen t Dc .
oavon. '
~ ull c-\ 2L\ i" L'"'1JL'rt Beach . Knnsas Cit'.l Miallll.
Essex Clv19 7LE Houston, " -
C il d,, rni;J L)26('() 1- New
Telephone (0621) 58051 ~1ilwauhcc. Mirmcapo \),
l\:kphc' lll' \ 1 7 1-\185 1 18 11 "Orlando.
lnril. Qrang< Cowlf''
Eric Wrigh t Philadelphia. PhocnL'\ Bay Area.
Ri,·ha rd D ill tlll ( "h c llllll ~i/ 1
l', ,·,hkn ;
St Louis, S.:attl.:. Sra rn[ord

lii spa nia Advc nisi ng !ne

-\ 2t1 lxx ingiLln AH·n uc
: L'" \ c11k N Y IL1L1 17
Tc\c ph t'll l' \ I 212) 2108) 10

l ·,\r,,lllll' lie my
lq ' lh ' ld l .\ltllhl,(t" l
Addresses
continued

Specialist Manufactwing
Communications
con tinu ed

Pace Communications Portland Outdoor Wire & Plastic Produ cts Ltd
Group lnc Advertising Ltd Ind ustrial Esta te, Hythc
485 Fifth Avenue 13 Maddox Street Kent CT2 1 6PE
New York, NY 10017 London W I R 9LE Telephone (0303) 6606 1
Telephone ( I 212) 8 18 0100 Telephone (01) 491 4293
G01·don Sampson
Clltilt"/11(111
Milton Bagley Dennis Sulli van
Prt·s,dnu cmd Clnd EXt't ufnt' O({lt tT

Reese Communica tions Survival Anglia Ltd

Companies/ Targeting 420 Lexi ngton Ave nue
Systems lnc ew York. NY 10017
2111 \-\'il son Boulevard Telephone ( I 212) 210 8989
Suite 900
Frank Mi ller
Arlington. Virginia 22201
Telephone ( I 703) 528 4400
Lord Buxton
Matt hew Reese
Chmrnwn ami Clud E\t' t Ul!\'f 0{{11 t'l
Ot het· office: London
Lynn Pounian
Prnulc'lll

Telephone ( I 703) 528 7555

Tt'Oinson Monroe
Adverti sing lnc
40 East 49th Street
1\N York, \Y 10017
Telephone ( l 212) 752 8660

Mario Trombone
PrntdCJJI

The Entertainment Group

10100 Santa Montca Boulevard
Los Angele
Californi a 90067
Telephone l l 213l 553R381

Richard Ma rkovitz
)t mm \'11 c' p,t',uloH
( oi OIIf' A tl il WJI ()Hc't/111
 Credits

Contributors:
)ere my Bull more,
Be,·erley Peck,
WPP Group plc

Designed & Produced by:

Sampson/Tyrrell Ltd

Printed by:
Royle City Ltd

\\l'P Gro up plc 11 7

 Notes

\\ K \\'I' I' ( r \"1 l ll j) pi<

\\ "PP l~rnup pk l \Ll
TOPIC Page 48020
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