Global profile: Burson-Marsteller

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. Wholly-owned offices: 46; Affiliate offices: 46; Total offices: 92 Countries with wholly-owned offices: 24; Countries with affiliate offices: 32; Total countries: 55* * Burson-Marsteller has both wholly-owned and affiliate offices in the UK. North America United States Wholly Owned: Austin Chicago (Burson-Marsteller and Marsteller) Dallas Detroit Harrisburg Los Angeles Miami New York (Burson-Marsteller and Marsteller) Pittsburgh (Burson-Marsteller and Marsteller) Richmond Sacramento San Diego San Francisco Washington, D.C. (Burson-Marsteller, Marsteller, BKSH & Associates and Direct Impact) Canada (NATIONAL Public Relations) Affiliates: Calgary Montreal Ottawa Quebec City Toronto Vancouver Europe/Africa Belgium: Brussels (Burson-Marsteller and BKSH) Denmark: Copenhagen France: Praris (Burson-Marsteller and BKSH) Germany: Berlin (Burson-Marsteller and BKSH ); Frankfurt (Burson-Marsteller and Marsteller) Italy: Milan (Burson-Marsteller and Marsteller); Rome Norway: Oslo Spain: Barcelona; Madrid Sweden: Stockholm Switzerland: Berne; Zurich The Netherlands: Amsterdam United Kingdom: London (Burson-Marsteller, BKSH and Marsteller); Manchester (Communique) Affiliates Austria: Vienna (Dr. Hochegger Kommunikationsberatung) Bulgaria: Sofia (Mmd) Croatia: Zagreb (Mmd) Czech Republic: Prague (Donath Burson-Marsteller) Finland: Helsinki (CW Works Oy) Greece: Athens (Advocate/Burson-Marsteller) Hungary: Budapest (Mmd) Ireland: Dublin (Park Communications) Kazakhstan: Alma-Ata (Mmd) Poland: Warsaw (Mmd) Portugal: Lisbon (C&C-Consultores de Comunica??o Lda) Romania: Bucharest (Mmd) Russia: Moscow (The Willard Group) Serbia: Belgrade (Mmd) Slovenia: Ljubljana (Mmd) Slovakia: Bratislava (Donath Burson-Marsteller) South Africa: Cape Town (Simeka TWS): Durban (Simeka TWS); Johannesburg (Simeka TWS) Turkey: Istanbul (Capitol PR) Ukraine: Kiev (The Willard Group) United Kingdom: Belfast (Morrow Communications) Zimbabwe: Harare (Network PR) Latin America Wholly Owned Argentina: Buenos Aires Brazil: Sao Paulo Chile: Santiago Colombia: Bogota Mexico: Mexico City Puerto Rico: San Juan Venezuela: Caracas Affiliates Guatemala: Guatemala City (Consejeros de Negocios) Panama: Panama City (Comunicaciones Corporativas) Asia Pacific/Middle East Wholly Owned Australia: Melbourne; Sydney China: Beijing; Guangzhou; Hong Kong (Burson-Marsteller and Marsteller); Shanghai Japan: Tokyo Singapore: Singapore South Korea; Seoul (Merit/Burson-Marsteller) Affiliates India ( all Genesis Public Relations): Bangalore; Chennai; Hyderabad; Kolkata; Mumbai; New Delhi Israel: Tel Aviv (MS Business Communications) New Zealand ( both Acumen Group); Auckland; Wellington Pakistan (both Mediators): Islamabad; Karachi Philippines: Manila (Strategic Edge) Taiwan: Taipei (Compass PR) Thailand: Bangkok (Aziam Burson-Marsteller) United Arab Emirates: Dubai (Bates PanGulf PR) Please describe how your agency is structured globally Chris Komisarjevsky, CEO: "Our strategy is to have a 50/50 global/national client mix, and to have a 50/50 balance of strategy and implementation. Our multinational clients value our seamless global network, while national and local experts provide geographic focus. We develop fully integrated solutions and campaigns capturing the best of both." Burson-Marsteller is structured around its clients. We create long-term partnerships with our clients and try to integrate our respective systems as much as possible. The firm is managed by a 12-person executive board representing our global business interests. Top global accounts are serviced by Key Client Relationship (KCR) leaders. Burson-Marsteller has a practice structure in the US and a market structure in other regions. In the US. we have seven national practices as well as market leaders in each office. In most international locations the market leaders are also the national leader, and they are supported by a global/regional network of practice experts. Burson-Marsteller has made significant investments in its financial and management reporting technology. Global reporting and billing is completely integrated worldwide. A network of Burson-Marsteller business managers and accounting personnel report to regional CFOs, a worldwide CFO and controller, before reporting to the president and CEO worldwide, Chris Komisarjevsky, and executive board. Please list three of your biggest international accounts, with the following information:
  • US Treasury, Bureau of Engraving and Printing (BEP) and Federal Reserve System: Introducing "The New Color of Money" Together with the US government, Burson-Marsteller designed and is implementing a fully integrated public education program that relies on virtually every communications discipline to educate diverse audiences about the new US currency, and its enhanced design and security features. Regions where the account is serviced: North America, Latin America, Europe and Asia. Burson-Marsteller leads the account, coordinating the activities of multiple WPP partner companies and affiliates during the course of the program, including: Eight US Burson offices (Washington, DC, New York, Miami, Los Angeles, Chicago, Dallas, San Francisco and San Diego) and 16 international locations (Burson: Argentina, Mexico, Colombia, Chile, Puerto Rico, Venezuela, Brazil, UK/London and Hong Kong, and Burson affiliates in Canada, Ecuador, Panama, Philippines, Russia, Turkey and Ukraine) The integrated WPP team includes: Burson-Marsteller (worldwide); Marsteller (Washington, DC and New York); Direct Impact (Washington, DC); Landor (New York); Penn, Schoen & Berland (Washington, DC); Ofield Dukes (Washington, DC), Kang & Lee (New York); The Bravo Group (New York); Y&R (Russia and Latin America); The PBN Company (Washington, DC and Russia); and Media Edge:CIA (Miami). Type of work: Research, materials development, event management, media relations, advertising, interactive and website site development, video, business-to-business and consumer communications, product placement, minority outreach, stakeholder outreach, and corporate partnerships. Length and type of engagement: Burson-Marsteller won the account in August 2002, and has been engaged with the US government on this project since that time, and is continuing for four additional option years. Management structure: "The New Color of Money" public education program is centrally managed by Burson-Marsteller's Public Affairs Practice in Washington, DC, only steps from the Bureau of Engraving and Printing. The program is led by Jim Lake (account supervising executive and managing director), Mary Crawford (project manager and director) and Christine DiBartolo (account manager). The team also includes specialists from Burson-Marsteller's Media, Corporate, Hispanic, and Brand Marketing Practices, as well as partners specializing in branding, ethnic and minority outreach, advertising, and research. Burson-Marsteller has been the integrator, campaign manager and strategic counselor - bringing together all of the program's elements: research; materials development; media relations; direct, stakeholder, and minority outreach; interactive elements; product placement; paid media; and international outreach. Hundreds of communications professionals, around the US and the world, work on the account. In order to keep program elements in sync and on time, conference calls are held on a weekly basis between various internal and client teams. In addition, a team intranet site was developed to provide global program teams with 24/7 access to materials and information. Account Finance: Billing occurs monthly, in terms of time and materials Size of Budget: A budget of approximately $55 million is in place, spanning the base year and option years, including fees and incentives.
  • AstraZeneca (AZ) AstraZeneca has been a Burson-Marsteller client for almost 20 years. In 2003, the AstraZeneca client team was recognized for its award-winning programs for the AstraZeneca Foundation and National Breast Cancer Awareness Month, US Hispanic marketing for ZOMIG (migraine) and pediatric asthma, and IRESSA "I'm Free" lung cancer treatment communications. Regions where you service the account, and whether the work is done by an affiliate, partner or a wholly owned office of the firm US, Latin America, Europe [Sweden, Norway, Spain, UK and Turkey (affiliate)] and Japan What type of work is done on the account, including what practice areas are involved Varies by market, but includes brand communications support, ally development, corporate branding, executive visibility, corporate responsibility, media relations, training, issues management/crisis communications, grassroots communications, corporate advertising, scientific communications and publication development, and placement. Practices involved include Healthcare, Corporate, Media, Public Affairs and Marsteller (advertising, design and production). Length and type of engagement In the US, we began our relationship in 1985 when we partnered with our sister agency Sudler & Hennessey to create National Breast Cancer Awareness Month with the client. Our international relationship dates back to 1993. Management structure of the account The global client leader is Kathy Beiser (Chicago). Local market leadership is provided by Kate Triggs (London), Anders Bylund and Helena Sandorf (Sweden), Ritsuko Shibagaki (Japan), and Jorge Ortega and Isaac Nahon (Latin America). Approximately 40 people work on the account worldwide and at various times we have placed B-M staff on site at AZ to support their public relations efforts. How you bill the account Defined scope of work and agreed upon budget--no retainers. Size of budget Confidential
  • SAP In 2003, Burson-Marsteller helped SAP transition from CEO Hasso Plattner to new CEO Henning Kagermann. The results of this and other efforts have helped SAP achieve number-one ratings in Germany and the US Regions where you service the account, and whether the work is done by an affiliate, partner or a wholly owned office of the firm We work with SAP in 47 offices globally, in every region. What type of work is done on the account, including what practice areas are involved Corporate and product public relations, industry analyst relations, public affairs and lobbying, and employee communications/change management Length and type of engagement Agency of record since January 2002 Management structure of the account (i.e. who leads the account and from which location, how many people work on the account globally, do you have any staff housed inside the company and where, etc.) Global client leader Heidi Sinclair oversees 150-200 people worldwide. How you bill the account Confidential Size of budget Confidential 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. Komisarjevsky: "So far 2004 looks like a good year. Each region has shown growth in revenue. Our largest global accounts (KCRs) and existing clients represent an ever-growing percentage of our total revenue." How has international staffing changed from one year ago? Komisarjevsky: "We cannot provide employee numbers; however, Burson-Marsteller's headcount has increased. Burson-Marsteller is always looking for the best talent and we are growing our talent base each year through significant new hires and award-winning professional development programs." If you are unable to answer any of the revenue or staffing questions, please describe in whatever terms you can the performance of your global operations over the past year. Komisarjevsky: "Burson-Marsteller aggressively invests in the future in a number of key ways, including adding talent that brings new disciplines and developing innovative, award-winning employee training programs, and continuing our long-standing investments in research and thought leadership. All of this is against a backdrop of growth in revenue, staffing and financial performance over 2003." 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? Komisarjevsky: "As we move past the first half of the year, our performance is in line with expectations. However the war in Iraq, elections in the US, concerns about terrorism and general unrest create some uncertainty as we move into the final six months of the year." What business have you won, or lost, in the past year due to a global consolidation of PR business by the client? Please list: Burson-Marsteller benefited from HP's global consolidation and has expanded the business into new markets. Aggressive Global New Business Development 2003 - 2004: Acquiring new business is more challenging and costly than ever. In heated competition, we were awarded large 2003 contracts for two new clients - HP and the US Bureau of Engraving and Printing. Other 2003 - 2004 new business wins include: Aventis, Pfizer/Pregabalin, Sanofi, Beijing Olympic Committee XXIX Games (2008), McDonald's/2004 Summer Olympic Games TOP Sponsorship, Discovery Network, Coca-Cola/Summer Promotion, Coca-Cola/Minute Maid, Miller Brewing, Nestle Food Services, Colgate, IKEA, VISA International, SONY, US Census Bureau, The UK Environmental Agency, Barnes & Noble, Hellenic Cultural Organisation, Singapore Tourism Board, Hong Kong Tourism Board, State Farm and BEHR Paints. What regions are performing best right now and why? What regions are under-performing? Reports from Burson-Marsteller's Regional CEOs Asia Pacific President and CEO Bill Rylance: "What's most interesting for us is the nature of the assignments we handle in Asia -- they are consistent with the kind of high-level consulting for which Burson-Marsteller is renowned worldwide. They also reflect recognition in this region that when big issues arise we are the firm best-equipped to handle them. When you consider that this is the most dynamic economic region in the world, this means that our Asia Pacific team is being asked to handle issues that can have a critical impact around the globe. "We're entering an extraordinary era in Asia that will require a comprehensive blend of communications skills. China is looking ahead to the Olympics in 2008 and the Shanghai Expo in 2010, Japan's economy is recovering, India is a huge market and virtually every country where we operate is facing some pivotal socioeconomic opportunities and challenges. We're fortunate to be able to draw upon people -- globally and regionally -- who have unique experience to bring to the table. "When you consider the major communications issues in Asia Pacific in the past few years and looking forward, a few headlines immediately spring to mind: SARS in Hong Kong and Singapore, the Beijing Olympics, economic challenges for a number of economies, and the extraordinary opportunities in India. What's interesting is that Burson-Marsteller is so heavily involved and engaged in every one of these issues. What we've also seen, however, is a growing reputation in specialist areas -- healthcare, financial communications and public affairs in particular. I think this strong presence is reflected in the recognition the firm has received -- we've won the regional consultancy of the year award in two of the past three years -- as well as a trend that sees many of the region's top PR professionals, including some 'returnees', wanting to work at the firm. "One of the great differentiators for Burson-Marsteller in Asia Pacific -- and something that makes us attractive to the best talent -- is our training programs. In the past year, we've continued our B-M University (B-MU) employee training programs throughout the region. However, what is interesting is the response to our external client B-MUs, which we've so far held in China and Australia. We always talk about the need to train our people and our next generation of leaders. However, some of our strongest relationships are being forged because we are engaging clients and government contacts in the same process. Of course, it's good for business but it's also good for the industry." Europe President and co-CEO Carlos Lareau: "Europe is emerging from a generalized recession. The recovery is materializing at an uneven pace. Some markets such as Spain, the Scandinavian countries and even France have registered a clear-cut return to growth and business dynamism while other economies (notably Italy, Germany and Switzerland) are more deliberate in their recovery. "We focus on generic/organic growth and are strengthening ties with our affiliate network especially in Eastern Europe. "Pan-European and global client assignments originating in Europe have increased at a greater pace than business overall. We believe this is a reflection of the improved macro-economic and trading conditions, and of a greater need among European multinational corporations to manage their communications globally. "Trends in Europe are as follows: Relocation of industry and services to lower-cost base countries. Much is moving to Eastern Europe, so Western Europe is focusing on more strategic approaches to attracting investment and growing businesses. This creates fantastic opportunities for Burson-Marsteller not only through crisis services (plant closings and change management) but also through corporate reputation work and location branding, among other services. "EU expansion to 25 member-states. The build-up to expansion and now the aftermath have generated a tremendous amount of public affairs and government-relations work for which our Brussels office serves as a benchmark standard for our competitors. Expansion has also built a stronger bridge to our Central and Eastern European affiliate offices, with which we regularly share client accounts and work. "Global events in Europe. Sporting events such as Wimbledon, Roland Garros, the European Cup 2004, America's Cup 2007 and bids for the 2012 Summer Olympics have allowed us to show our capabilities in location branding, sports marketing, event management and more. They also provide global platforms for our multinational clients. Other major fairs and conferences such as the OECD forum, Davos/World Economic Forum, WHO meetings, Barcelona Forum, GSM and CEBIT have also created opportunities that we have successfully leveraged for our clients. "Key Accounts: SAP and VISA International, a more recent win" Latin America President and CEO Santiago Hinojosa: "In Latin America, Burson-Marsteller's regional practice structure has been a unique advantage. We are able to provide deep industry knowledge such as healthcare and technology along with communications excellence across seven major markets with wholly owned offices. Each office is staffed by strong local nationals within practices and led by seasoned strategic leaders. We are the only firm that can offer our client partners that powerful combination of global/regional thought leadership with local relevance and expertise in Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico, Venezuela and our Miami headquarters. "Compared with last year, our regional performance is meeting expectations as we continue to win new business across all the markets and have not lost any major accounts due to global consolidation. "In LatAm, our three largest regional clients are SAP, GSK and Schering. We work with them in Brazil, Argentina, Mexico, Colombia, Chile and our regional office in Miami. Our most recent regional win was Symantec. "We are doing LatAm regional pro-bono work for the FTAA (free trade), Conference of the Americas (conference positioning) and IAA (communications)." US Chief financial officer Jerome Selick: "In the US, Burson-Marsteller's performance year-to-date is exceeding expectations. In past years we've seen strong sectors lead the growth. This year every practice and discipline is seeing improved performance and is exceeding plan. We are also exceeding our new business goals, both in terms of business from new clients and growing business from existing clients. In general new business is 60/40: 60% client development, 40% business from new clients. Outlook for the next six months. Forecasts look strong. We anticipate a slight increase or will hold to projections and plan. "The Washington, DC market is robust. There we have an integrated team including Burson-Marsteller, Direct Impact and BKSH. The recent dedication of the World War II Memorial on the Mall was the high point of an eight-year engagement involving a fully integrated team. We have entered the second year of our work for the US Treasury Bureau of Engraving and Printing, added a global US Census Bureau project, and we have grown our traditional public affairs client work. "In Healthcare, we've had success with AstraZeneca and Aventis, and won Pfizer/ Pregabalin (epilepsy treatment). "In the West our technology practice is strong, led by SAP and HP. "Chicago has picked up new business from McDonald's, Kellogg's, Abbott Labs and CDW Computers. "New York is emerging from 9/11 and the media recession. "Areas for expansion are nutrition and government (intervention at the state level and building our federal base) "Regional strength is also evident in the market for talent: demand for talent is up, recruiting is more difficult and compensation is rising." 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? In 2003-2004, we extended our wholly owned office network, opening a US office in Richmond, Virginia, a Marsteller office in Milan, and a Communique office in our London headquarters. We also expanded our global affiliate network, adding seven offices in Eastern Europe -- Alma Ata, Belgrade, Bratislava, Bucharest, Ljubljana and Zagreb -- and key market coverage in the Middle East with Bates PanGulf Public Relations, headquartered in Dubai. What new region/country will you consider entering this year and why? Are you considering international acquisitions or organic growth? Organic growth 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. Burson-Marsteller has just completed a bi-annual corporate social responsibility report for our parent company WPP Group, in which we captured our pro-bono activities. Based on reports from our offices around the world, we estimate that the firm contributed approximately $607,000 in time and materials to non-profit organizations in 2003. Some of the larger causes we support are the Special Olympics in China, Korea and Japan; Singapore Red Cross; Latin American Business Education Initiative; Junior Achievement Foundation; Great Ormond Street Hospital, London; Australian Red Cross - Bali Appeal and Leukemia Foundation; Prohumana, Chile; Free Trade of the Americas Association; Los Angeles Urban League and Make-A Wish Foundation; Diseases of the Developing World Initiative, Africa; and many others. Our activities have included hosting sustainable development roundtables in Paris and participating in the OECD forum, "The Health of Nations." In addition, our survey indicates that in 2003, $300,000 in charitable donations were made by the company and individuals including funds for Community Chest and United Way organizations, education, health and children's charities. We are proud of our strong ties and direct involvement with institutions of higher learning. In October 2003, Burson-Marsteller dedicated the first chair in public relations at Boston University's College of Communication. Our professionals frequently give speeches and teach courses at top universities in the US, Netherlands, Germany, Italy, China and Australia, as well as conduct research and host open forums with leading business schools and business organizations. Our industry associations are extensive. One of the most notable is co-CEO Europe Carlos Lareau's current presidency of the International Communications Consultancy Organisation (ICCO), a global body representing 850 PR consultancies and their trade associations in 24 countries.

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