The document discusses opportunities for agencies during an economic recession. It suggests that agencies should leverage the recession by getting closer to clients, deeply understanding their businesses, and helping solve larger problems beyond just advertising. Agencies should take a long-term view, focus on building strong client relationships, and position themselves as integral partners that can help clients navigate the recession.

1. Recession…the big opportunity for smart people…. Paul Birkett Global Intelligence Director PepsiCo

3. What is Global Intelligence? PepsiCo is a $35Bn Global Corporation - employing 183,000 people - in 100+ countries

5. … similar consumers…in similar channels

7. Dow Jones Industrial Average….crashes to 2003 levels…

8. US House prices falling faster than in the Great Depression…

9. Overextended consumers…fight to remain solvent….

10. Brand owners slash budgets to deliver profit commitments…. … and the creative world is seeing fundamental change… Financial Times London Edition October 10th

11. A brief history of marketing… First Era: 1960’s: The Category Benefit A new product to fundamentally change the way you do things Third Era: 1990’s: Celebrity…fame by association Consume this and be part of the “in crowd” Second Era: 1980’s: The Comparative Benefit A new product that offers a significant benefit over the competition Fourth Era: 2007+: Hothouse Commercialisation Lo-cost, lo-risk, high-potential public experimentation

12. Production costs $40 The Fourth Phase: Hothouse Commercialisation: The Super Bowl's Most-Liked, Most Recalled Commercials IAG Research: Consumers Most Liked Doritos' Consumer-Created Ad NEW YORK (AdAge.com) -- Doritos' "Live the Flavor," a consumer-created commercial , was the Super Bowl ad most liked by viewers across the country, according to IAG Research's post-game survey.

13. Production costs $40

14. … and the speed of change will continue to increase … “… the processing power of a chip doubles every 24 months…” – while prices remain flat Gordon Moore Intel Founder ‘65 Moore’s Law … two things changed our world forever… 80: 20

15. … the democratisation of everything! … get whatever you want…fast! Knowledge Research Speciality Romance Travel Communication

18. … is it the end of the world….?

21. … get up there with him… … be there at the moment of discontinuity

23. Practical Intellectual Short Term Effect Long Term Effect Strategy Operations Manufacturing Sales Marketing & Insights Advertising Promotions PR Research … to increase their sphere of influence… Finance Media Client: Production Agency: Consumer … stepchange the visible value you provide..

24. Innovate to grow… consumers demand better products…. you’ve got to stay ahead to win Invest ahead of the curve… You have got to market through the downturn… … all true…but not much use right now…

25. I need someone who.. Understands the customer Understands the market Understands my business Can help sell to the board I am still working on my crisis plan…hitting my profit target

27. Sales: Understand the competitive pressures…

28. Production: How do they make it?...in theory…

29. … and in practice…

30. Finance: Where do they make money….

34. … you decide how it ends