Leo Burnett is an advertising agency that was founded in 1935 in Chicago. One of their clients is Ontann Beauty Care (OBC), which is a leading global manufacturer of health and beauty care products. OBC has been awarding Leo Burnett’s (LB) its business for many years. OBC has been a client of LB’s Toronto and London offices since 1958 and mid-1970, respectively. OBC has centralized its global marketing campaign for a given brand and creates the communication materials as templates for local offices to follow. Local offices are then responsible for adapting these raw global materials and developing local “below the line” materials. LB also centralized its decision making to better service it original client.
In 1998, OBC presented a new skin care line that would target a rapid growing population of consumer over the age of 50. This new skin care line would be called “Forever Young”, and was more expensive than other OBC skin care products. OBC awarded its advertising and brand communication to LB. Mirroring the global OBC team structure; LB global brand team remained in London and formed satellite teams in Toronto and Taiwan.
The Taiwanese Team would receive the creative templates from the LB global team and would adapt for the local market. In addition, they would have to adapt the television ads and retake photos for the print ads with an Asian model. The Toronto team would use English television ads and print advertising for the Canadian market. Furthermore, they would produce direct marketing and Web site materials. In short, the Toronto Team had less autonomy, and was not able to adapt to the Canadian market.
The results showed the Forever Young launch in Taiwan was successful. While the results of the launch in Canada was below “action standards”, in spite of the success of the isolated pre-launch test. Furthermore, LB’s future business with OBC was now in jeopardy and tension raised within LB to improve the OBC brand in the