Global Profile: Ketchum

Headquarters location: New York

Headquarters location: New York

Total staff numbers in US Not supplied Total non-US staff numbers Not supplied Please list all office locations around the world, identifying which ones are affiliates, partnerships or wholly owned. Affiliates denoted by * North America: Atlanta Chicago Dallas Los Angeles New York Pittsburgh San Francisco Toronto Washington, DC Latin America: Mexico City S?o Paulo Bogota* Buenos Aires* Caracas* Guatemala City* Lima* Panama City* San Jos?, Costa Rica* San Juan, Puerto Rico* Santiago, Chile* Asia Pacific: Beijing Guangzhou Hong Kong Shanghai Taipei Auckland* Bangalore* Bangkok* Jakarta* Karachi* Kuala Lumpur* Mumbai* Manila* New Delhi* Seoul* Singapore* Sydney* Tokyo* Wellington* EMEA London Madrid Milan Munich Paris Austria* Belgium* Czech Republic* Denmark* United Arab Emirates* Finland* Greece* Hungary* Ireland* Israel* Netherlands* Poland* Portugal* Russia* Slovak Republic* South Africa* Sweden* Switzerland* Turkey* Please describe how your agency is structured globally At Ketchum we structure our agency around the particular needs of each individual client. Our client roster includes a list of blue chip regional, multinational and global clients. While much of our business is managed geographically, most of our work is administered through our global practices. (40% of our business is serviced on a multipractice, multinational basis.) This structure was developed as part of the Best Teams approach to account staffing, a concept that Ketchum is often credited with pioneering. Under this approach, instead of headquartering an account simply (or even primarily) based on geographic proximity, we manage the account from the office with the most relevant expertise, and in fact, broaden the account team to include individual staff from offices other than where the account is based if it is in the clients' best interests to include those individuals. Supporting this global growth strategy is a practice group structure covering the following areas: Brand marketing, corporate, healthcare, technology, and food and nutrition. Together, these practice groups help our clients "move the merchandise" through marketing communications, a core competency of the agency, and to build and manage message alignment with their key stakeholders through corporate communications. Each practice group has a global head and communicates via regular practice group calls and conferences. Practices also are supported by the agency's award-winning corporate intranet, myKGN, and collaborative workspaces for knowledge sharing and communication. In addition, Ketchum has appointed global client relationship directors to our large multidimensional, multinational accounts to ensure that we are highly focused on the needs of our clients. Global practice directors are spending more time with these top accounts, as well. The result for our clients is a consistent strategy worldwide with flawless execution against global and local initiatives. Please list three of your biggest international accounts:
  • EASTMAN KODAK Regions where you service the account, and whether the work is done by an affiliate, partner or a wholly owned office of the firm. Americas: New York, Atlanta, Chicago. Europe: London, Madrid, Munich, Milan, Paris, Copenhagen (Effector Communications A/S), Moscow (Maslov, Sokur & Associates). Asia Pacific: Beijing, Guangzhou, Hong Kong, Seoul (Access Communications), Wellington (Network Communications) What type of work is done on the account, including what practice areas are involved? Ketchum works closely with Eastman Kodak's New York-based and regional communicators around the world to market the company's digital and film products and services, as well as its extensive offering for professional photographers and labs. Length and type of engagement: Ketchum is agency of record for Kodak's Digital & Film Imaging Systems, the division responsible for consumer and professional products and services. These include the one-time-use cameras, Kodak PictureMaker kiosks, the EasyShare line of digital products, Kodak Professional DCS digital cameras and the company's online photo development service Ofoto. Ketchum has been working with Eastman Kodak since December 2000. Management structure of the account: Ketchum's multinational work on behalf of Kodak is led out of the New York office with regional leadership support in the UK and Hong Kong. Dale Bornstein, partner/director, leads the account. Michael O'Brien, SVP, director brand/food practice at Ketchum, serves as global account director for the business, which consists of more than 40 team members worldwide. How you bill the account: For the US, billing is coordinated through the New York office. Work managed out of the Europe and Asia offices are billed within the respective regions. Size of budget: Not supplied
  • FedEx Regions where you service the account, and whether the work is done by an affiliate, partner or a wholly owned office of the firm. Americas: New York, Stromberg (internal communications activity), Dallas, San Francisco, Atlanta, Washington DC, Chicago. Europe: London, Paris. Asia Pacific: Hong Kong, Beijing, Shanghai, Guangzhou, Taipei, Sydney (with exclusive affiliate Network Communications), Manila (with associate partner Corporate Image Dimensions), New Delhi (exclusive affiliate MelCole Public Relations) What type of work is done on the account, including what practice areas are involved? Currently housed in the agency's corporate practice, FedEx has worked with the agency in a variety of capacities including: general corporate communications counsel, executive visibility, technology communications, government relations counsel, research and measurement, media relations, internal/employee communications, sports marketing communications, issues and crisis management. Length and type of engagement: FedEx and Ketchum are celebrating 10 years of partnership. Management structure of the account: The FedEx account is managed from the New York office. Jerry Olszewski, senior partner, international, leads the account. Denise Kaufmann, SVP, serves as global account director. The global account team is made up of 35 professionals working on behalf of FedEx around the globe. How you bill the account: In the United States, billing is centrally coordinated through the New York office. At the regional level, billing is managed by Hong Kong for Asia Pacific and by London for all of Europe. Size of budget: Not supplied
  • ROCHE Regions where you service the account, and whether the work is done by an affiliate, partner or a wholly owned office of the firm. In the highly regionalized, highly regulated, healthcare sector, Roche partners with Ketchum in its two key markets, the US and Europe - with Ketchum's London office taking the lead role in this relationship. These markets encompass 88% of the global pharmaceutical market. Europe: London is the key hub for handling Roche Global's European headquarter-based business; this office also handles local UK market communications for Roche Americas: New York (handles national US marketing communications for Roche's organ transplantation drugs), San Francisco, Washington, DC (The Washington Group), New York (and Stromberg Consulting), Chicago What type of work is done on the account, including what practice areas are involved Ketchum London leads the relationship with Roche Global (based in Basel, Switzerland) and is the hub office providing global marketing communications support for several key Roche brands and their oncology franchise. The work is two pronged - covering both international media relations and the delivery of core campaigns and materials to Roche Global for use in affiliates located in local markets across the globe. The latter involves working with global marketers at Roche headquarters where Ketchum provides strategic counsel and the development and delivery of focused, consistent and high impact communications programs. This work frequently forms part of the local markets PR activities and so results are seen on a local basis (e.g. local coverage) across many countries. Services provided include influencer relationship management, medical congress support, trial/data campaigns and extensive issues management support. Ketchum is responsible for outreach to both professional and, within regulatory frameworks, patients/consumer. International audiences are very diverse for example in breast cancer, Ketchum is tasked with communicating to specialists doctors and nurses in oncology centers, family doctors and their practice nurses, pharmacists, third party patient support organizations and through disease awareness work, patients and their families. Brands supported at global level include: Major oncology products such as MabThera (Rituxan in the US), and Herceptin (in the UK, Ketchum also supports Xeloda and Bondronat) Standalone oncology franchise initiatives HIV products such as Fuzeon (also supported in the UK) Developing World initiatives CellCept a key transplantation medicine (also supported in the UK) Length and type of engagement: Roche and Ketchum have been working together for more than 20 years with year-on-year increases in the business. Management structure of the account: The Roche global relationship is managed from the London office. Avril Lee, who is the managing director London healthcare, and Mark Cater, managing director, Europe oversee the business. Each individual brand team is then led by senior directors in London, for example the HIV team is led by Sebasti?n Desprez, associate director, and Alex Watson, group account director. In total, 30 healthcare communications professionals service the Roche business. How you bill the account: The account is billed from Ketchum London to Roche Global headquarters in Switzerland. Size of budget: Not supplied How have international revenues changed from one year ago? Revenue is defined as revenue generated by all regions excluding the region in which your agency is headquartered: While we're not permitted to disclose specific numbers, international revenues were up in 2003 and continue to grow in 2004. Despite the challenging economic times, the agency has experienced two of its strongest new business years ever. How has international staffing changed from one year ago? International staffing is in line with client demand and current income levels. Ketchum has historically been above the industry standard for staff retention in years when these competitive numbers have been disclosed. While we are not permitted to disclose staffing numbers due to Sarbanes-Oxley, our 2003 staff retention rates were at about 80%. Did performance meet or exceed expectations, or not? Please explain why. What external factors such as the war in Iraq, political issues, cultural issues, affected performance?
  • Financial goals In 2003, we accomplished our financial goals through solid client service, excellent client retention and the best new business year in our history. Ketchum continues at this pace in 2004.
  • Client engagements If you take a look across the agency at the kind of assignments we've been involved in, you can see just how central the agency is to the businesses of many of our clients. This is a measure of the faith that our clients put in us, and our stature in the industry that we're being entrusted to handle many critical assignments for our clients. Selected examples include: With Cox, Ketchum worked to prevent the cable industry from being regulated. With Starbucks, Ketchum is introducing the Seattle-headquartered American brand to a widely-diverse European audience. With Clorox, Ketchum handled one the most innovative product launches last year, the Clorox Bleach Pen.
  • New business From June 2003 through June 2004, our new business performance remained strong. For example, we won the majority of all pitches in which we participated. In that time period, selected new business wins included such clients as The Home Depot, Fireman's Fund, Novartis, Cox Communications, Hampton Inns, Takeda, Orange, GlaxoSmithKline, ConAgra Foods. Additional assignments from some of our largest existing clients, including Eastman Kodak, FedEx, Genentech, Roche, Nokia and UCB Pharma, The Clorox Company, Starbucks and Britvic, helped to contribute to the year's success.
  • Moving forward 2004 is shaping up to be another strong year for Ketchum. Of course there is a degree of economic uncertainty on a worldwide basis, but at this time we don't see this having a significant impact on our business. Our client relationships and their planned spending levels for 2004 appear to be strong. Our people have done a superb job building great client relationships with a high degree of loyalty between the agency and its clients. It's because of these kinds of relationships that our clients continue to see us adding value to their businesses. What business have you won, or lost, in the past year due to a global consolidation of PR business by the client? Please list:
  • Wins ConAgra, as its first agency of record (2004); FedEx/Kinko's - FedEx consolidated its FedEx/Kinko's business with Ketchum after it merged with Kinko's (2004)
  • Losses Phillip's Lighting (midyear, 2003) What regions are performing best right now and why? What regions are under-performing? In the US business remains strong, exceeding budgets. Susan Molinari and The Washington Group's resources, including its three partners John Raffaelli, John O'Hanlon and Rita Lewis, have been instrumental in growing business from the nation's capital. Year to date, Europe is up 20% over last year, with London leading the way. Latin America also is showing growth in 2004. In Greater China, Ketchum operates five offices (Hong Kong, Shanghai, Beijing, Guangzhou and Taipei). This region has rebounded decisively post-SARS and benefits from the significant expansion of major US companies. Ketchum's Greater China offices handle major regional assignments for FedEx, Kodak, IBM, P&G and Boeing. What region do you plan to invest more resources in this year than you did one year ago and why? What region are you decreasing investment in and why? Ketchum turned its attention toward Europe last year, promoting and adding senior staff. Ketchum also absorbed DDB's PR arm in France, strengthening its ties with the sister ad agency in recognition of the advertising-driven French marketing climate. Our investment strategy in Europe is focused primarily on development of our practice areas rather than geographic regions. We'll continue to develop our European healthcare business (which is showing very strong growth). At the same time we're planning investments in corporate in the UK. In terms of geographic coverage, you can expect to see an expansion of the Ketchum brand in Germany by Q4. Ketchum sees Mexico poised for significant growth driven especially by the ambitious expansion plans of US-based companies. A cross-border team of senior professionals are working together to maximize the potential of Mexico's growing commercial importance. What new region/country will you consider entering this year and why? Are you considering international acquisitions or organic growth? No plans to enter new European countries but we are engaged in a realignment of our affiliate network. The goals of the realignment are to improve client service on network business as well as to better position Ketchum in key markets. Among the new EU member countries we're seeing upside in Poland. Please describe some of the pro bono activities that you undertake internationally, or other ways that your firm connects with the international regions in which you operate. For many years, Ketchum has made a corporate commitment to donate our professionals' time and experience - and resources as needed - to support leading international organizations that promote public relations management and international cooperation around the world. Specifically, Ketchum activity in this regard has centered on three major international outreach initiatives. Working with the United Nations Global Compact, a consortium of some 1200 companies from around the world committed to sustainable development, we have provided both communications counsel and expert commentary during appearances on Compact programs in Berlin, Paris and New York. Our commitment to the International Section of The Public Relations Society of America's International Section is helping to enrich that group's development of international symposia such as last year's "Beyond War and Terrorism -Rebuilding Global Communications Links" at The United Nations headquarters in New York. The symposium, a forerunner of a similar event to be held in early 2005, was highlighted by an address by the Honorable Shashi Tharoor, UN Under Secretary-General for Communications and Public Information. Ketchum's most recent pro bono involvement in support of international communication and cooperation has been to take a leadership role in the Global Alliance for Public Relations and Communications Management. The alliance, with the succinct mission of "one profession, one voice" globally, is a constellation of public relations professional societies representing some 160,000 professionals on all of the world's continents. In addition, each office is involved in pro bono activities within the communities or regions in which they operate. For example, we provide pro bono public and media relations support for the Thurgood Marshall Scholarship Fund and provide financial support for merit scholarships for students majoring in public relations, communications or journalism.

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