The Jeffrey Group: Agency Business Report 2007

The agency is well positioned to continue growing and take advantage of US Hispanic market expansion.

The agency is well positioned to continue growing and take advantage of US Hispanic market expansion.

"New York is the US media capital, [and our opening an office there signals] recognition of how important US Hispanic business is going forward," Jeff Sharlach, president and CEO says.

"Companies are taking a broader perspective," he adds. "More and more realize the overlap in US and Latin American consumers. As communications tools become more electronic, geography matters less. Language is uniting people."

Principal: Jeffrey Sharlach, chairman and CEO
Ownership: Independent
Offices: 2 US, 3 Latin America

Staff
The Jeffrey Group has 55 employees (up four with 8% turnover) and contracted staff in every country of Latin America and the Caribbean. Eduardo Chac-n joined from Fleishman-Hillard as GM of The Jeffrey Group Mexico. Mike ValdŽs-Fauli moved from Miami headquarters to become MD of The Jeffrey Group New York and leader of US Hispanic practice.

Regional performance
A New York office was opened in mid-2006. "All Latin American clients are asking to expand in the US Hispanic market and vice versa," says Sharlach. "Synergy is developing. We're investing heavily." Brazil, Mexico, and Argentina also show strong growth.

Practice areas
The agency specializes in Latin American and US Hispanic consumer and corporate work across practice areas. An in-house creative services department was added to offer a full range of print and electronic design and production capabilities.

Accounts
Clients include Kodak, American Express, British Airways, Sony Ericsson, Getty Images, and FedEx. Among 2006 wins are Diageo, Western Union, and ViewSonic (all across three or more countries). Diageo, Getty Images, and Western Union each expanded into new markets. No clients were lost, and 90% of business is retainer-based.

Financial performance
The agency saw double-digit growth for the second year in a row, ending 2006 up 16% at $3.7 million.

Agency's full questionnaire follows below:

Name of parent division/company (enter both where applicable)  
N/A

Name of subsidiary companies  
N/A

Has your ownership status changed in the past year? If yes, please explain    
N/A

Name of global CEO and US CEO (or most senior equivalent)   
Jeffrey Sharlach, Chairman and CEO

Name of person, if any, the most senior person named above reports to    
N/A

What is your current headcount? How has your headcount changed since FY 2005?  
55
+4

What was the percentage of staff turnover in 2006?        
8%

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company
Eduardo Chacón joined from Fleishman-Hillard to be General Manager (top executive) of The Jeffrey Group Mexico

What senior staff have departed the firm? Please state name and previous title
None

Please list any other senior management changes, including restructures and significant, senior-level promotions
Mike Valdés-Fauli named Managing Director of The Jeffrey Group New York (relocated from Miami HQ) and leader of US Hispanic Practice.

Have you made any acquisitions in the past year, or merged with another agency?
N/A

How many wholly owned offices do you have globally?
North America
Miami (Headquarters)
New York

Latin America
Buenos Aires, Argentina
Mexico City, Mexico
São Paulo Brazil

How many partly owned offices or affiliates do you operate globally?
We have contracted staff in every country of Latin America and the Caribbean.

What offices opened in 2006 or early 2007? (State when)         
N/A

What offices closed in 2006 or early 2007? (State when)           
N/A

Which regions, US and globally, are growing, and why?
US Hispanic is fastest-growing part of our business.  Brazil and Mexico - and Argentina to a lesser extent - are all showing strong growth.           

How many practice areas do you have? Please list.
N/A

Which ones are new?
In-house creative services department offers full range of design and production, both print and electronic.

Of those, which ones are part of the core strategy of the agency?
N/A

Which practice areas have been phased out in the past year?
N/A

What practice areas showed the most growth? Please elucidate.
N/A

Which practice areas showed the least growth? Please elucidate.
N/A

What is the distribution of accounts across practice areas?
N/A

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
Major wins:
Diageo: US Hispanic and Latin America
Western Union: US Hispanic and Latin America
ViewSonic: Latin America

Of your 2006 wins, how many were across three or more countries?   
100%

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
None

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate
Diageo served primarily in US Hispanic expanded to Latin America
Getty Images expanded from Latin America to US Hispanic
Western Union expanded from US Hispanic to Mexico

What proportion of your clients are on a retainer? Has this changed over the past year?  
90%
Not significantly

What was your 2006 global (including US) revenue?            
$3.7MM

What was the % change over 2005 global revenue
16%

What was your global profit margin in 2006?
Agency declined to give information.

What was your 2006 US revenue?
See above.  We work with consolidated numbers.

What was the % change over 2005 US revenue
N/A

What was your US profit margin in 2006?
N/A

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.
No information given.

How much of your growth was organic, and how much was due to new business won?
No information given.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
No information given.

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