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, - - - - - --- - - - - --- Burne"'s Brand New Media; 'p.19 In Print, p.22 Direct Hallmarketing, p.26 K» sueMMwetk is published by Corporate Affairs, Leo Burnett Company, Inc., 35 West Wacker Drive,. Chicago, Illinois 60601 Editor: J... Kv(rie Contributing Editors: les. Ca'.yr fesae f6.iedy fus.a f.lllvaa, pe.el 1Mhlfak.r Editorial Advisory Board: •ql l.gdrreelM, Kallde NepPe, hNr Il.diwy. iowt Nesser, etrJ Y(Yelyi ® Leo Burnett Co:, Inc., 1992. May not be reproduced without written permission. Printed in U.S.A. On fhe eeree Josh McQueen, evp/head of Bumeet's research department andi Carol Foley, vp/group research director, creators of Buyer Strategy Detection. Cover photograph, George Kufrin T he scene: a check- out counter at any U.S. supermarket. Four shoppers coming through the line have Brand'A coffee in their carts. These four are "creatures of habit" who consistently buy this brandl Right? "Not necessarily," say Burnett researchers. In fact, ea&of the four consumers probably has a different rea- son~ for buying Brand A. By applying a new research tool, "Buyer Strat- egy Detection,"' Burnett researchers will be able to unravel the inner dynamics of Brand A sales, dissecting the purchasing strategies on packaged' goods in almost any category in a way never before possible. This research break- throughicame about with, development of', scanner tech- nology by firms such as 1RI (Information Resources Inc.). It's a research tool ready to be shared with any Burnett client who has this type of scanner purchase data. Here's how it works. Scanners record brands, types and sizes purchased plus information on coupon use and special sales offers. Typically, 5,000 to 6,000 households nationally have allltheir grocery purchases scanned. By studying this scanner data in a new way, for a two to three year period, Burnett researchers have composed a strikingly accurate picture of'consumer purchasing patterns, which they call Buyer Strategy Detection. It was Carol Foley, vp, group research director, who first discovered significant buying patterns emerging in every packaged goods cate- gory. She likens BSD to an X-ray in the way it examines the rationale of'consumer buying. For example„our super- market shoppers with Brand A coffee in their carts repre- sent four buyer strategy groups in the BSD model. One, Mr. Loyal, buys Brand A exclusively. His preference for the brand is so strong that even lower prices and special offers of' other brands can't entice him to switch. Each brand has different percentages of "loyals," usur ally peaking at 20 percent, says Foley. Acting like a see- saw, the higher the number of brands in a category, the more likely the lower the percentages of loyals, she says. Ms. Rotator represents buyers in a second strategy group. "Variety is the spice ofl life" for her whem it comes to coffee. This week she buys Brand A. Next week, she'Il select Brand B; the following week, Brand A, and so on. A "rotator," Foley says, typically buys different brands in a cate- gory for different uses. For example, Ms. Rotator may serve Brand A, a regular cof- fee, in the morning and Brand B, a decaffeinated cof- fee, in the evening. Like "loyals," "rotators" make buying decisions before com- ing,to the supermarket and are not swayed by prices. A thir&consumer„ Mr. Pricewise, chooses Brand A for a different reason: price. He buys the brand that's cheapest at the time he shops. Some price-driven ~A

al Account Managers: Moving "No Two CLIENTS are identical. They have unique needs, driven by their respective industries, corporate cultures, operating structures, management styles, marketing objectives, quality of talent and the state of their business. We will organize differently for each client, in harmony with their emerging geo-economic organizations. "We need to share our learning, both suc- cesses and failures, across borders and func- tions." -Rick Fizdale, Chairrnan, CEO and CCO, LBCo., Inc. As "global custodians" of a client's brand image, it is Leo Burnett's responsibility to insure that consumers everywhere receive the same selling impression of that brand. Here, Burnettwork examines the differing management approaches the agency has taken to nurture, build and sustain brands for three of our multinational clients: Proc- ter & Gamble, Philip Morris and Kellogg. Procter & Gamble P&G is listed on the client rosters of Burnett offices in every country where we do business-49 to be exact. To give an example ofl the magnitude of the partnership, three years ago when P&G and' Leo Burnett rolled out Pert Plus Shampoos in 36 countries within 36 months,,together they began the most successful new product launch in P&G'history-for a brand that today is the world's top seller. But beyond that, the Pert Plus expansion effort, led by Hank Feeley; became the model of how P&G and Burnett build and support brands around! the world with superior advertising. Guiding this enormous and ever-growing network from Chicago is Mary Bishop,, evp,, client service director and Mike O'Neal, vp/account director. They, along with nine regional account directors, key local account directors,,and the (1-r) Jackie Dickens, LB/London; Mike O'Neal'and Mary Bishop discuss a new P&G international'assignment: 4

Continued from page 11 where Navy Pier would soon be built. Four and a half hours away by train from Chicago, stretching.out along the [IlI- nois River was Peoria, a colorful distillery town, population about 67,000, where, within a year, the 100 millionth American would be born. t was no secret that Peoria's • corrupt politi- cfans were allowing a fla- grant-and boister- ouls-red-light district to flourish. Bent on running the rascals out of town was the equally boisterous Peoria Journal-a feisty independent news- paper-which _ waged a constant crusade against, the evils of prostitution and any other civic corruption it could unearth. The Jour- nal also carried on a' fierce" and bitter rivalry with two other Peoria dailies, the Star, and the Peoria Transcript. The Journal sold for two cents, car- ried' from 10 to 20 pages of news and adver- tising and put out three editions a,day. Its front pages, in 1914, were devoted' to war news; inside pages covered' everything from murders, weddings, livestock reports, visits from relatives, theatre reviews, sports, mari- tal' advice ("Confessions,of a Wife, Written by Herself"), to columns on the overwhelm- ing wonders of the day: "Electricity," and "Automobiles." It was to this small, individualistic, opinionated newspaper that the 23-year old Leo Burnett came, fresh from the'University of Michigan, hell-bent on a journalism career, and taking the first of several gam= bles that would characterize his working life. On Saturday, September 12', 1913, ,Leo''s college friend T. Hawley (Tap) Tapping, hearing that Leo was off to seek a job with the New York World, had told Leo of a job opening on the. Peoria Journal. "Don't be silly and go to New York," advised Tapping. "On a paper the` size of the Journal you can cover all the bases...this is a hot little paper and a wonderful editor." Leo considered the Peoria job. In 1965, he said,. •"George Fitch, who wrote the Siwash stories for the Saturday Evening Post:..was con- nected with it (The Journal). And that appealed' to me a little bit, because I' had read his stories. But I didn't think much of the job so I said I was going to New York anyway and thanked (Tap). And, well, Sun- day morning he called me at home and said: `They're expecting you to report at the Peo- ria Journal at seven o'clock Monday morn- ing-tomorrow morning.' "Tap had paid no attention to my indifference to his suggestion. And so 11 said, 12 ....~ . . .~ ............. . .~... ~~..r _,. ._.. ,_.....K.,..•.~..~...~