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  • Accenture

    1. 1. INSTITUTE OF SOCIAL SCIENCESMarketing Management
    2. 2. HISTORY In 1970s The Administrative Services Division In the 1950s broadened the scope of its business Arthur Andersen beyond “the design began offering and implementation In 1913 consulting services to of systems” to companies wishing to include “the conduct Age of 28. implement Northwestern of studies to produce information systems, the information University economics and renamed the professor Arthur needed by unit the management to Andersen founded Administrative the accounting firm direct the activities Services Division of its organization.” Arthur Andersen & Co.
    3. 3. ROADMAP 01. January. 2001 1989Independ entBU form Spending $7 billion ArthurAnderson In 2000 Andersen License to expire Consulting was Dec 31, 2000 granted its independence
    4. 4. Image Initiative Respond to image crisis, MICD decided to embark on an «image initiative» in 1987…  Generate awareness  To differentiate itself in the IT services  To distance itself from its accountancy heritage image  Selection of a new name for MICD  Providing separation from Arthur Andersen  Benefiting from its brand equity  Clear positioning in the market space with the «consulting»
    5. 5. Marketing in Consulting  Set a new standard for marketing a professional services company  Marketing in a strategic sense and had the courage to create the brand and invest in it. Breakthrough – • TV ads - New Year’s campaign - stressed Andersen Consulting’s technology expertise. • Spent approximately $5 million in advertising during its first year. • Team of media specialists within Andersen Consulting partnered with Burson-Marsteller, a leading public relations firm to influence industry analysts.
    6. 6. Marketing in Consulting Known as System Integration Consultancy, based on research made in 1988 (5 years). Since partners demanding proof that the results of the advertising warranted the expenditures. Andersen Consulting conducted extensive market research, focusing ; 37% 1-) Marketplace awareness 2-) Client Satisfaction 3-) Buyers values 4-) Advertising copy testing 6% 5-) Media monitoring 1 2 Metric Driven Performance  Annual tracking studies and regular measures of the senior executive target audience’s perceptions of the brand.  Advertising investment was drawn directly from the partners’ potential profits.
    7. 7. Developing Global Advertising Reasoning : Between 1980s – 1990s the consulting business growth from $3 billion to $30 billion
    8. 8. From 6 to 75from 32 to 50 percent percent79 percent increased in 3 years -Managemet and technology-Creative and innovative in consultingdeveloping -Operational strategy consulting applications-Visionary -System integration-Leader -Business reenginerring
    9. 9. Arthur Andersen – Conflict period  Exploring Marketplace Confusion Arthur Andersen marketing initiatives Brand Confusion  Arthur Andersen Business Consulting Two firms becoming competitors Arthur Andersen benefitting from brand image Loss of brand equity  Increasing success of Andersen Consulting $11 billion by 2001 – financial success Personality of the ads still relied on a clever tone and manner A to C rebranding  Final Split Mid-December 1997, Andersen Consulting sought to split from Arthur Andersen
    10. 10. Andersen Consulting versus Arthur Andersen Business Strategy System Organizational Re-engineering Consulting Integration ChangeAndersen Consulting %24 %18 %19 %10Arthur Andersen %27 %17 %18 %12 Business Strategy System Organizational Re-engineering Consulting Integration ChangeAndersen Consulting %35 %32 %29 %23Arthur Andersen %31 %22 %25 %18
    11. 11. Repositioning ANDERSEN CONSULTING • Brand Equity Measurement Initiative, Andersen Consulting November, 1999 Consideratio Image Awareness Preference Average nAndersen 6.5 10 9.1 5.8 7.9ConsultingMcKinsey 7.2 8.4 9.2 6.4 7.8IBM 5.3 4.9 3.6 1.2 3.8Earnst& Young 3.8 3.2 5.3 1.9 3.6EDS 1.9 0 1.6 0 0.7 Points of Points of Insight and Vision«To help our clients create their Difference Parity Technology capabilitiesfuture»
    12. 12. Rebranding and Repositioning process  August 7, 2000, the arbitration ruling -released Andersen Consulting from any further obligation to Arthur Andersen or Andersen Worldwide -- financial, professional…  The license to use the Andersen Consulting name was to expire Dec 31,2000  Never in history had such a large scale rebranding occurred in such a short period.  Within 147 days, the company had to unveil a name that was trademark in 47 countries, over 200 languages. Rebranding Launch Timeline August 7-11 Aug 11- Oct Sept – Oct Nov- Dec Jan 1 2001 BRAND EXECUTE NAME PLANNING RESEARCH BRAND LAUNCH DEVLOPMENT CHANGE Arbitration Name Devp. Market Testing Logo Advertising Decision Visual Identity DirectMktg. Native Speaker Dialogue Strategy Brand Line & Review Mag. Media / Analyst Devp. Description Relations Linguistic Analysis Prelude Ads Int / Ext Events Creative Brief Launch Plan Outlook Mag. Devp. Final Media Signage Recommendation /Analist
    13. 13. Renamed. Redefined. Reborn. 01.01.01 $75 million marketing & comm budget and additional $100 million Brandstorming: thousands of name candidates were generated Native Speaker review & linguistic: 47 countries and against 200 languages URLs :51 names found to be available globally Kim Petersen submission selected: Accenture, it rhymes with «adventure» and «an accent on the future» - Logo written in lower case - With greater-than (>) symbol which means pointing forward to the future - «T» serving to accent the world - Lower case «a» to demonstrate that Accenture is approachable
    14. 14. Launch EffortsINTERNAL LAUNCH• New brand and New positioning conveyed to employees : 178 offices, 47 countries, 70.000 employees, 7 million business card.EXTERNAL LAUNCH• Television spots , New Year’s Eve celebration, Accenture branded airship, sponsorships of other major global sporting events• High profile advertising program, over 43,000 clients received a launch mailing which included creative packaging to announce the new name and positioning. External Launch Efforts: Phase Two Advertisements were innovative and striking Super Bowl Ad Golf tournaments sponsorship RESULTS AND RESEARCH • Accenture IPO and Financial Results - Accenture stock was up almost 80 percent • Need to Update the Positioning – Partnership strategy • Refining Positioning –
    15. 15. Ad campaign changes and the way forward • Bringing “Innovation Delivered” to Life -> I am your Idea • Global Growth – 110 offices in 48 countries $13.6 billion in 2004 Top clients Growing market $160 billion in 2008 • Competition Intensifies IBM acquires PWC HP – IT consulting Bearing Point and Deloitte – Indian companies – TCS , WIPRO ,INFOSYS • Govt Contracts – US govt contracts awarded • Ad campaign changes again to – “High Performance. Delivered”
    16. 16. QuestionsQ1. How would you characterize AndersenConsulting’s brand equity in the late-1990s? What factors and decisionscontributed to the building of this equity?
    17. 17. PRODUCT Management Consulting Services Points of Difference 1. Unique position compared to competitors in that the company offered valued strategic business services and well regarded IT solutions 2. “Because clients viewed IBM as a technology consultant and not a business strategist, Andersen Consulting’s reputation for insight and vision constituted a point of difference” 3. Not afraid to advertise to promote its name, image, and position “Most professional services chose not to advertise, feeling it was inappropriate or unprofessional” First to advertise in airports 4. Personified as “creative, driven, far-sighted and innovative” Points of Parity 1. Offshoot of an accounting unit 2. Proficient in information systems/ technology, “ established points ofPRICE parity with technology and strategy firms” By 1998, Andersen Consulting was the market leader in four major categories in consumer rankings of consulting firms (management and technology, operational strategy, systems integration, business reengineering) From 1993 to 1998, billings increased by 20% annuallyPLACE Advertising in print, television and airports Corporate Sponsorships
    18. 18. PROMOTION Awareness o Between 1990 and 1993, total global awareness was 79% o Advertising: in 1998 had print and airport poster advertising in 30 countries o Hired PR firm to influence industry analysts, publications and press Interest o Public Relations : Corporate sponsorships such as Williams Formula One racing team sponsor, title sponsor of Andersen Consulting WorldDesire Championship of Golf and 1998 Van Gogh exhibit in Washington DC o One of the first firms to come to the consumer’s mind when thinking of business management consulting firms o High “share of mind score”, a measure of brand recognition -Study by Harris Research: Andersen Consulting ranked first in the followingcategories: share of mind, value for money, uniqueness, andmomentum -Industry analyst IDC found in 1997 that IBM and Andersen Consulting hadthe greatest familiarity among technology buyersAction o 1990s were successful, 68% of consumers considered Andersen Consulting as a “leader” : Billings reached $8.2 billion in 1998DISTRIBUTIONOffices/Locations: United States, headquartered in ChicagoBy 2004, 110 offices, in 48 countries, 115,000 employees, 2,200 partners
    19. 19. QuestionsQ2. Compare the characteristics ofAccenture’s brand equity to those ofAndersen Consulting. Do you think therebranding and repositioning of thecompany successfully transferred theequity from the old name to the new one?
    20. 20. Andersen Consulting Brand Elements Accenture Brand Elements Slogan: Slogan: Logo: “Bridging Log “High greater Nam Boundaries to o: Performa than e Name Create the Ac nce symbol of Future” Delivered. the t ofMemorabl 5 4 5 ” Accenturee Memorable 5 4 5Meaningful 5 4 5 Meaningful 5 4 5Likeable 5 4 5 Likeable 5 4 5Transferabl 5 4 5 Transferable 5 4 5e Adaptable 5 4 5Adaptable 5 4 5 Protectable 5 4 5Protectable 5 4 5
    21. 21. Effectiveness:1. The first rebranding of Andersen Consulting in 1999 prepared the company for the move to Accenture. Accenture was able to build off of Andersen Consulting’s brand image and associations and ultimately came out the better for it: Ac rebranding was “a rehearsal of a global brand change”2. “Accenture” provided continuity from the name of Andersen Consulting o AC, first two letters of Accenture o “connoted accent on the future” , similar to previous “create the future” mission of Andersen Consulting o Consultant created name, helped to reach employee acceptance3. “Accenture” also provided an understandable image of thecompany’s new direction and position, with a unique word that couldpass the global trademark tests
    22. 22. a. Accenture came out of the rebranding process at a greater awarenessthan it was as Andersen Consulting, mostly in part to two-phase marketingstrategy a. Used creative advertising, promotion and public relations to createbrand recognition, brand association and brand recall -In 2001, “awareness for Accenture was above or at previous levelsfor Andersen Consulting in most countries” b. Independence from Arthur Andersen finally removes any confusionbetween the two entities Perfect timing, due to Enron-Arthur Andersen scandal c. Accenture positioned itself carefully among the target market andconsidered global changes in the marketplace - Accenture took advantage of these changes and offered to assistclients to do the same and turn them into opportunities with “Now it getsinteresting” advertising campaign5. Accenture did maintain equity globally and therefore the rebranding was worth its$175 million price tag a.Accenture has maintained its position in the consideration set andactually increased equity -“The advertising effect on purchase consideration on Accenture’sservices increase 350% following the campaign”
    23. 23. QuestionsQ3. How much of a competitive threat isIBM ? How should Accenture best competewith them.
    24. 24. Competing with IBM• Accenture is a management and technology consulting firm• Consulting, technology, outsourcing and alliances are its core business• Accenture is ahead of IBM in strategic management consulting but it lacks the technical expertise of IBM• Accenture should look to improve its technical expertise and move ahead in managing innovation, providing clients with creative solutions/implementing client’s ideas• It should also continue partnering with its client by providing not only consultancy but delivery and implementation• Setting incentives that realized only if specific business targets were met should be expanded to all contracts to provide credibility to the company’s positioning of “High Performance. Delivered”
    25. 25. Marketing Strategy• First in the industry• Building image and equity through creative advertising and personifying the organization• Print advertisements to complement the broadcast commercials, later presence on internet also• Flighted media schedules to create the illusion of more ambitious advertising program• Public relations activity, influencing industry analysts, leading industry publications and the tier one business press• Metrics to gauge the effectiveness of marketing• Target key prospects and clients where they lived & worked• Rigorous focus groups testing and customer insights• Sponsoring high performance sport events like F1 racing, Golf etc..
    26. 26. Brand Personality Dimension Tiger Woods Brand Personality Dimensions CompetenceSincerity down- Excitement Sophistication reliableto-earth honest daring spirited upper class intelligent wholesome imaginative up- charming good successful cheerful to-date looking leader
    27. 27. • Tiger Woods and Accenture – Brands take personality of the celebrities who endorse them – Tiger Woods was golf’s leading money winner in 2003 – The campaign used the personality dimension of competence and the related facets to assign the human characteristics of Tiger Wood’s to the Accenture Brand – The worlds ultimate symbol of high performance, he serves as a metaphor for commitment to helping companies become high- performance businesses• Tiger Woods is an effective spokesman for Accenture – 1. Accenture’s objective of hiring Tiger as a spokesperson is to humanly represent their High Performance Business Strategy sector’s strengths with a person with those same strengths – 2. Advertisements showed Tiger in an intense competitive situation and winning due to his high performance and aptitude which then explained how Accenture too delivers high performance even in the most competitive situations and possesses capabilities, expertise and technology to aid clients receive superior results