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1. Opportunities
and Challenges
of Public Relations
in Russia
ANDREY BARANNIKOV
CEO of SPN Ogilvy,
Chairman of AKOS-ICCO,
Vice President of the Russian Public Relations Association
1
2. SPN Ogilvy at a glance
āA MARKET AND THOUGHT LEADER IN RUSSIAā
ā¢ Founded in
ā¢ Over
1990 ā one of the biggest and oldest agencies in Russia and CIS.
200 employees in 3
offices: Moscow, St Petersburg and Kyiv.
ā¢ An Ogilvy PR Worldwide affiliate since
ā¢ Over
2005.
4000 large-scale projects for more than 300 Russian and international companies:
ā¢ The most internationally awarded PR agency in Russia and CIS:
2
3. The challenges and opportunities of working in Russia
ā¢
Vast spaces
ā¢
Richest natural resources
ā¢
Huge gap between the
capitals and the regions
ā¢
Lots of skilled specialists
ā¢
Good telecommunications
infrastructure
ā¢
Dynamic economic
development in numerous
regions and industries
(including IT)
ā¢
Unique cultural heritage
ā¢
Excellent education system
ā¢
Problems with
infrastructure
ā¢
Bureaucracy
ā¢
Corruption
ā¢
International image leaves
much to be desired
ā¢
Left-overs of the Soviet
system
3
4. Working across 1/7 of the land
ā¢
9 time zones
ā¢
83 regions
ā¢
143 million people
4
6. āThe Matryoshka Effectā: Russiaās face within and without
The challenges and perspectives of building city, regional and country image for
attracting tourists and investors and promoting brands
6
12. The French biathlete
called Sochi
āthe ghost cityā
ā¦and the reply of the Russian customs officials:
āActually, we would have had to send them home. But, for
their benefit, we processed their guns manually, as quickly
as we couldā¦ā
12
14. The Russian PR industry
ā¢ Very young (exists as an industry since
1990s)
ā¢ Still āenjoysā notorious reputation
ā¢ Lack of structure and system
ā¢ Lack of transparency
ā¢ Huge differences between federal and
regional agencies in quality and pricing
ā¢ Technological gap (especially in Digital
& Social Media)
14
16. Which stories should we tell about ourselves?
The most attractive features of the Russian economy in the eyes of
foreign investors
Russiaās domestic market
75%
Telecommunication infrastructure
69%
Labour costs
69%
Local labour skills level
Possibility of increasing my companyās productivity in
Russia
Russiaās culture and language
68%
67%
67%
* Foreign Investment Advisory Councilās āRussiaās Investment Climate 2012 ā
Survey of Current and Potential Investorsā, 2012
16
19. Which stories should we tell about ourselves?
The Calvert Gallery & Journal
- āa guide to creative Russiaā
The Ru.branding project
- Russian folk art in modern
design
19
20. Skolkovo: building trust in Russian innovations
(with some help from Finnish celebrities)
ā¢
Changing perception of Skolkovo ā from a
āmoney pumpā to an intellectual leader.
ā¢
Strategy: owning the media conversation and
DEMONSTRATING REAL RESULTS ā making
Skolkovo residents and investors speak for
themselves.
ā¢
Integration into key Russian and international
business and innovation events, including the St
Petersburg International Economic Forum, Sochi
International Investment Forum, Pioneers
Festival (Austria) and SLUSH (Finland).
RESULTS for 2012:
ā¢
Volume of negative coverage dropped 30%
ā¢
Positive changes in the opinion of key TA
(residents, international investors etc.)
ā¢
For the year 2012, Skolkovo got:
-
57% of all its residents (450 of the 783);
-
64% of all applications to become a Skolkovo
resident it has received since 2010 (2500 of
3890);
-
49 contracts with venture foundations for 19.6
billion rubles (approx. 490 million EUR).
20
21. "The Green Button": Forming a culture of energy conservation in Russia
(2012)
ā¢
With the population of 143 mln, energy
consumption is increasing, owing to an
improvement in the well-being.
ā¢
No economic incentives to preserve
energy due to state regulation of tariffs
being held over a long period.
ā¢
No ācultureā of energy conservation, with
stereotypes about āthe wide Russian
soulā and the belief that Russian
resources are endless.
21
22. "The Green Button": Forming a culture of energy conservation in Russia
(2012)
ā¢
ā¢
ā¢
ā¢
7 training sessions for the media
8 press tours to energy efficient
objects in the regions (e.g., Sochi
Olympic objects)
3 press conferences
Initiation of journalist investigations
Results:
ā¢
Over 300 journalists attended
events
ā¢
Over 7050 media hits featuring
energy efficient projects and behavior
22
23. WINNER OF SABRE AWARDS 2013
āBest campaign implemented in Russia and the CISā
23
24. VoltExercise! (2011)
MAKING OUR HISTORICAL
BACKGROUND WORK TOGETHER
ā¢
Organizing the biggest public
exercise session since the Soviet
times ā 10 events in 7 cities!
ā¢
487 media hits, 75% mentioning
the brand
ā¢
Sales to distributors grew 36%
24
26. Nationwide blood donation development program (since 2008)
Strategy:
ā¢
Building a social institution of blood
donation
ā¢
Integrated communication campaign
of over 2,500 events
Results:
ā¢
Over 27,000 media hits since 2008
ā¢
Over 2 mln people participated in
events
ā¢
Over 1 mln people donated blood
ā¢
Donor numbers grew by 17%
nationwide
ā¢
Every 3rd Russian says he/she is
ready to donate blood
26
27. Nationwide blood donation development program (since 2008)
FIGHTING NEGATIVE MEDIA COVERAGE
ā¢
Press tours to transfusion stations (since 2008)
27
28. Nationwide blood donation development program (since 2008)
ENGAGING YOUNG PEOPLE
ā¢
ā¢
ā¢
ā¢
Nationwide music contest āMuzArteriaā (2011)
Over 2000 participants
600 entries
Over 3000 media hits
28
30. LG Electronicsā corporate volunteering program (since 2009)
UNFOLDING AN INTERNAL CSR INITIATIVE INTO A GLOBAL CAMPAIGN
Initial agreement:
Organizing donor days twice a year
Done since 2009:
ā¢
ā¢
Integration in 25 events, including the
All-Russian Youth ForumāSeligerā (2010
ā 2012)
ā¢
The campaign embraced over 2 000
LG employees in Russia
ā¢
45 celebrity ambassadors involved,
incl. musicians, popular TV and radio
presenters, Olympic athletes
ā¢
13 media and corporate partners ā
setting a trend for a new CSR
format in Russia!
ā¢
KOREA HERALD,
most popular Korean newspaper
52 Donor Days. Over 6 000 people
donated blood
3 RECORDS OF RUSSIA officially
registered!
30
31. LG Electronicsā corporate volunteering program (since 2009)
DONOR DAYS
WITH LG AMBASSADORS
INTEGRATION INTO NATIONWIDE INITIATIVES
Donor Day of LG and Moskovsky
Komsomolets newspaper with Nikolay Valuev
ā¢
āTrain of Innovations and CSRā, April 1-11, 2012
ā¢
RECORD OF RUSSIA as the longest blood donation relay
ā 4,285 km, 8 cities for 10 days!
Donor Day of LG and Eldorado retail network
with Alexey Tikhonov and Maria Petrova
31
32. The Russian PR industry
In 2012:
50%
agencies said that in over 50% tender companies
demanded an agency to provide creative work for free.
In
29%
tenders the winner was never announced.
25%
tenders were considered by the agencies unprofessional
and improperly organized.
AKOS-ICCO 2012
Research by the Committee for Tendering Policy
32
33. Thatās how it works sometimesā¦
Large construction company
ā¢
Complicated object
ā¢
Client insisted on a minimum retainer fee
ā¢
For 2 months, the agency worked āfor
freeā
ā¢
When asked for the payment, the
company started making claims to the
agency.
ā¢
The company paid the amount half as
small as the agencyās estimated budget
(not enough even to cover costs)
33