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Omnicom case

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Introduction

OMNICOM CASE CASE STUDY QUESTIONS 1. Study the evolution of Omnicom since the inception of its constituent companies and comment on the circumstances that forced it to reengineer its operation in the 1980s. 2. Critically examine the strategies adopted b Omnicom to become a global advertising agency and comment on the effectiveness of these strategies. 3. What do you think were the 'success secrets' of Omnicom? Do you think the group's decision to reduce it dependence on advertising revenues (by expanding into other marketing and communication disciplines) was appropriate? Give reason to support your answer. 4. Examine the future of Omnicom in light of the changes taking place in the advertising industry in 2003 and the intensified competition among advertising agencies. Do you think Omnicom will succeed in remaining the market leader? Justify your answer. What should Omnicom do to retain its market place? EXECUTIVE SUMMARY This report analyzes the evolution of Omnicom from 1980 to 2003 and also how did they achieve to become a leader in the advertising industry. The report begins by giving a brief background of advertising agencies. The report then analyzed the evolution of Omnicom since the inception of its constituent companies in 1980. The report then examines the strategies adopted by Omnicom to become a global advertising agency and the emergence of IMC. ...read more.

Middle

Thus maintaining a geographical balance for its various businesses and reducing the group exposure to any single industry, client or geographic area. Omnicom and other advertising agencies invested and organized to provide all communications capabilities in addition to traditional advertising services, such as sales promotion, public relations, collateral materials, and direct mail. This shift was motivated by economics: Budgets were moving away from media advertising to other resources, and agencies wanted to retain that income. Agencies also wanted to provide coordinated campaigns for their clients. Yet the majority of clients didn't buy for several reasons. First, clients didn't see a clear cost benefit from combining all these services in one advertising agency. Their analysis indicated it would be cheaper to disperse this work among different suppliers. Second, and more importantly, many clients didn't have confidence in the ability of advertising agencies to deliver specialized services such as annual reports, direct mail, and PR. They felt more secure going to specialists. Finally, clients had administrative concerns about putting all their eggs in one basket. If the client decided to replace the agency, the transition process would be considerably more complicated. And if the agency resigned the client which does sometimes happen there would be considerable administrative factors to deal with. ...read more.

Conclusion

There is not much space for traditional media in future. In line of these changes following are the recommendations for Omnicom to retain its market leadership in future: * Need to develop true expertise in a variety of integrated marketing communications areas. * Need to create organizational structures that make it possible for individuals with expertise in a variety of communications areas to work well together both internally and externally. * With the emergence the agencies with interactive experience in Web marketing and advertising (digital advertising) will have a jump on agencies that do not have interactive skills. Need to develop further expertise in web marketing. * Cultural differences have a significant impact; agencies such as Omnicom have yet to harness their global experience in bridging cultural differences. * Integration of marketing communication elements will further strengthen the company position. 6. SOURCES OF RESEARCH Books: � Schultz,D. & Kitchen,P. (2000) Communicating Globally, An integrated marketing approach, Macmillan press ltd. � Shimp, T. 6th Edition, (2003) Advertising promotion & supplemental aspects of integrated marketing communications, Thomson south western Journals: � Journal of advertising research accessed on 26th May 2006 � Journal of marketing communications accessed on 26th May 2006 Databases: � Market Line http://0-dbic.datamonitor.com.lispac.lsbu.ac.uk/ ( accessed on 26th May 2006 ) Websites: � www.omnicomgroup.com (accessed on 27th May 2006) Case Study: � Omnicom Case, (2004) ICFAI Center for management research (ICMR) Hyderabad, India TOTAL WORD COUNT: 1,846 1 Case Study ?? ?? (footnote continued) ?? ?? 2 15 ...read more.

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