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May 2007

1. Universal PR. May 2007. 2. Universal PR. May 2007. Overview. Agency Credentials Situation Analysis Global SWOT Cognis’ Reputational Priorities Cognis’ Global Awareness Global Campaign Aim Global Campaign Objectives Expected Reputation Global Campaign Concept

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May 2007

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  1. 1 Universal PR May 2007

  2. 2 Universal PR May 2007 Overview • Agency Credentials • Situation Analysis • Global SWOT • Cognis’ Reputational Priorities • Cognis’ Global Awareness • Global Campaign Aim • Global Campaign Objectives • Expected Reputation • Global Campaign Concept • Global Campaign Strategies • Global Campaign Key Messages • Global Campaign Tactics • Target Countries • SWOT • Competitor & Media Analysis • How Cognis is Perceived • Tactics • Timeline • Budget • Evaluation • Global Budget • Summary

  3. Universal PR 3 Universal PR May 2007

  4. 4 Universal PR May 2007 Agency Credentials

  5. Agency Credentials 5 Universal PR May 2007 Universal PR: Our Philosophy “Start small, think big” • Lively, dynamic and hardworking. • Talented professionals. • Committed to developing effective public relations programmes with measurable results. • Effective communication proposals based on detailed research, analytical thinking and honesty. • Global outlook whilst having local knowledge.

  6. Agency Credentials 6 Universal PR May 2007 Universal PR: International Offices Barcelona, Spain Erfurt, Germany Bournemouth, UK Virginia, USA Lisbon, Portugal Goritza, Italy Bangalore, India Cape, Stellenbosch, South Africa

  7. 7 Universal PR May 2007 Situation Analysis

  8. Situation Analysis 8 Universal PR May 2007 Using information gathered from our own research, as well as information contained within the brief, enabled us to develop a global SWOT analysis. The following SWOT analysis details issues currently facing Cognis on a global scale.

  9. Situation Analysis SWOT 9 Universal PR May 2007 Strengths • Constant innovation. Cognis invests heavily in research and development to meet customer demands. This is relatively uncommon considering the company’s size. • Leading manufacturer. Cognis UK, for example, is a leading European manufacturer of speciality base fluids and formulated PAGs developed for speciality lubrication and foam control applications. • Excellent relationships with regulatory bodies. Cognis strives to build strong relationships with regulatory authorities in all the countries in which it operates. • Responsible neighbour. Cognis is involved in a number of initiatives in its bid to be a responsible neighbour across the world. • Supporter of good causes. Cognis has supported a number of charitable projects across the globe. • Strong relationships with customers. Many of Cognis’ key customers have worked with the company for many years. • Employee development. Cognis recognises the importance of employee development and ensures its workers have the skills and knowledge to move forward technically.

  10. Situation Analysis SWOT 10 Universal PR May 2007 Weaknesses • Size. Cognis competes against other chemical companies that are far larger in size. • Poor online presence. Cognis’ website is difficult to navigate and the company has a poor online presence. • Age. Cognis is relatively young compared to other global competitors.

  11. Situation Analysis SWOT 11 Universal PR May 2007 Opportunities • Emerging markets. Growing markets, particularly in the East, offer Cognis a fantastic opportunity for further expansion. • Emerging social trends. Current social trends such as concern regarding wellness offers Cognis an opportunity to exploit. • Cognis’ years of expertise. Although Cognis has only been a legally independent entity since 1999, the company has over 160 years of experience in the chemicals industry as part of Henkel. • Rise in popularity of online communication. More people are communicating online, across the world. This provides Cognis with an exciting way to communicate with its various publics. • Increasing democratisation of countries. This offers Cognis a chance to operate in stable markets.

  12. Situation Analysis SWOT 12 Universal PR May 2007 Threats • Increasing regulation. The EU commission has recently voted on REACH (the registration, evaluation and authorisation of chemicals). The vote marks a decisive step towards implementing the biggest and most complex piece of European environmental legislation ever devised. The objective of REACH is to ensure improvements in human health and the environment whilst fostering innovation and competitiveness. • Pressure group activity. Groups such as Green Peace are critical of efforts by chemical companies to alter the REACH proposal. Campaigners argue that REACH is needed to test the effects of chemicals on health and the environment. • Negative media coverage. Potential damaging media reports about the company impact upon Cognis’ reputation across the world. For instance, it was recently reported that Cognis paid $400,000 in fines for water pollution discharges in Mill Creek, USA.

  13. Situation Analysis 13 Universal PR May 2007 Cognis’ Reputational Priorities “To be known as an extremely marketing-oriented specialty chemicals company with a deep understanding of its customers’ markets.” “To be a leader in developing innovative solutions and concepts that can directly meet consumer demands and give customers a competitive advantage.”

  14. Situation Analysis 14 Universal PR May 2007 Cognis’ Global Awareness The scorecard data contained within the brief, allowed us to analyse Cognis’ reputation on a global scale. Our analysis is presented in the graph on the following slide. The graph shows the levels of awareness that each of the target publics (see below) have regarding Cognis’ reputational attributes. The closer to the centre, the stronger the level of awareness. Individual graphs have also been plotted for each country to show levels of awareness on a local scale and are contained later within the proposal. • Target Publics: Direct: • Employees • Journalists Indirect: • Community • Government • Organisations • Customers

  15. Situation Analysis Unknown Weak Average Strong 15 Universal PR May 2007 This global graph shows that employees overall have the greatest level of awareness of Cognis’ repuational attributes. Trade, financial and general journalists have the weakest level of awareness.

  16. Situation Analysis 16 Universal PR May 2007 Initial research enabled the development of a global aim, objectives and strategies. The following slides outline these aspects of the campaign.

  17. 17 Universal PR May 2007 Global Campaign Aim Increase Cognis’ reputation from weak/average to strong through an integrated internal and external two year global communications campaign.

  18. 18 Universal PR May 2007 Global Campaign Objectives • Increase awareness of Cognis as a marketing orientated and globally innovative company amongst the media and employees. • Increase awareness of Cognis’ high quality and reliable products and services amongst the media and employees. • Increase awareness of Cognis as a socially responsible company amongst the media and employees. • Increase awareness that Cognis is a good employer amongst the media and employees. • Increase awareness of Cognis’ vision, business strategy and financial decisions amongst the media and employees.

  19. 19 Universal PR May 2007 Expected Reputation- where Cognis wants to be - Cognis… • “understands customer markets” • “is highly innovative” • “develops products to improve way of life” • “develops reliable products and delivers excellent services” • “is a socially responsible company” • “is a great place to work” • “has a clear vision” • “is financially sound” • “is an excellent communicator”

  20. 20 Universal PR May 2007 Global Campaign Concept Create a positive internal corporate culture and communicate it externally to establish Cognis as a corporate citizen in order to increase its reputation.

  21. 21 Universal PR May 2007 Global Campaign Strategies • Communicate Cognis’ commitment to innovation by initiating topical and newsworthy information about Cognis’ products and services. • Improve Cognis’ reputation through third party endorsement. • Position Cognis as the credible voice of issues facing the chemicals industry. • Ensure employees are aware of how their role fits within the wider organisation. • Engage in transparent communication concerning Cognis’ vision, business strategy and financial decisions.

  22. 22 Universal PR May 2007 Global Campaign Key Messages The diagram in the following slide illustrates this campaign’s key messages, what they mean, and how they link to each of the global strategies.

  23. Global Campaign Key Messages Global Campaign Messages 23 Universal PR May 2007 1. Communicate Cognis’ commitment to innovation by initiating topical and newsworthy information about Cognis’ products and services. 2. Improve Cognis’ reputation through third party endorsement. “Outstanding reliability” “Leading the way” Cognis knows how to develop reliable products and services. Cognis knows how to meet consumer demand through constant innovation. 3. Position Cognis as the credible voice of issues facing the chemicals industry. Cognis WE KNOW HOW 5. Engage in transparent communication concerning Cognis’ vision, business strategy and financial decisions. “Working together to find solutions” “Looking to the future” Cognis knows how to solve problems by working in partnership with others. Cognis knows how learning from the past can lead to a bright and successful future. 4. Create a global sense of unity amongst Cognis employees. “Engaging with employees” Cognis knows how to improve performance through working as a team.

  24. Global Campaign Key Messages Leading the way. We know how. 24 Universal PR May 2007 Back to: Global Campaign Messages

  25. Global Campaign Key Messages Outstanding reliability. We know how. 25 Universal PR May 2007 Back to: Global Campaign Messages

  26. Working together to find solutions We know how. 26 Universal PR May 2007 Back to: Global Campaign Messages

  27. Global Campaign Key Messages 27 Universal PR May 2007 Engaging with employees. We know how. Back to: Global Campaign Messages

  28. Global Campaign Key Messages Looking to the future. We know how. 28 Universal PR May 2007

  29. 29 Universal PR May 2007 The following slide details the global tactical recommendations for this campaign. After this, each of the target countries for the campaign are presented.

  30. 30 Universal PR May 2007 Global Campaign Tactics • 10 year Anniversary. In February 2009, Cognis will be 10 years old! • Tactics: - An event in each country - a thank you to employees for making Cognis a success. - Detail Cognis’ history on the media website - to communicate to journalists about Cognis’ past. • Website Re-Design. Websites for each country, individually tailored to meet local demands.

  31. Global Campaign Tactics 31 Universal PR May 2007

  32. Global Campaign Tactics 32 Universal PR May 2007

  33. Global Campaign Tactics 33 Universal PR May 2007 Back to: Global Campaign Tactics

  34. Global Campaign Tactics 34 Universal PR May 2007 Global Cognis Website Example Site Map:

  35. 35 Universal PR May 2007 Target Countries In order to view the research that was conducted and the tactics that were selected for each country, please click on the flags above.

  36. 36 Universal PR May 2007 Cognis Brasil Ltd.

  37. 37 Universal PR May 2007 SWOT: BRAZIL

  38. 38 Universal PR May 2007 Brazil Competitor & Media Analysis Competitor Information • Basf: It’s a chemical company very successful worldwide. In brazil it has accomplished very good results since the beginning of 2007. • Oxiteno: It’s part of Ultrapar Participações S.A., one of Brazil’s chief industrial groups. They try to adopt and support social activities and citizens initiatives, from the neighbouring communities. • Resinsac: It’s a Brazilian company founded in 1951 in São Paulo, that has many segmented areas of action. Nowadays Resinac has 120 employees, and results of approximately US$15.000.000/year Media • Digital Media. The digital media’s importance in Brazil is ascending. There’s also an increasing use of virtual communities, and the brasilian’s acconuts in virtual communities correspond to 56% of the total number of utilizations. • Most important general press from São Paulo: Agora São Paulo, Correio Popular, Diário de São Paulo, A tribuna, Jornal de são Paulo, Folha de São Paulo, O estado de São Paulo, Jornal da tarde. • Specialized press: DCI – Diário do comércio, Industria e serviços; Valor econômico; Circuito; Razão contábil, Exame

  39. 39 Universal PR May 2007 How Cognis is Perceived in Brazil The graph highlights employees, general and trade journalists have greater awareness of Cognis’ reputational attributes compared to financial journalists. In particular, Cognis being a financially strong company, has a clear vision and marketing requires focus. Unknown Weak Average Strong

  40. We know how. 40 Universal PR May 2007 “Leading the way” Strategy 1: Communicate Cognis’ commitment to innovation by initiating topical and newsworthy information about Cognis’ products and services. Tactics: • Host a charity event in partnership with Ecoar – Instituto ecoar para a cidadania. - Cognis will donate R$2.000 to the NGO. - The event will consist in a speech from the Cognis manager and a trip around Cognis facilities. Cognis will also provide light refreshments. • Invite media to join the event and to visit Cognis facilities. - Invite general press from São Paulo (e.g. A tribuna) and specialized magazines (e.g. Exame). • Have a “computers room”, so that employees can read their e-mails and have access to internet. - Includes buying four computers. • Establish an internshipagreementwithuniversities. • So that Cognis can benefit with the knowledge and criativite of students, at the same time that they can have some working experience.

  41. We know how. 41 Universal PR May 2007 “Outstanding reliability” Strategy 2: Improve Cognis’ reputation through third party endorsement. Tactics: • Send press releases and press kits when the situation is worthy. • Build partnerships with other companies ofsupplement products. • Lectures with the directors. - In Regular basis, so that everyone can be kept informed about everything that happens in the company.

  42. We know how. 42 Universal PR May 2007 “Working together to find solutions” Strategy 3: Position Cognis as the credible voice of issues facing the chemicals industry. Tactics: • Promote teamwork between employees from different departments. • Create a section on the website with relevant issues about the chemical industry. • Establish partnerships with schools. - Related to teaching about environment protection, recycling and citizenship education. - Allow school visits to Cognis facilities. - Offer a Cognis Kit to the visitors (Including a pencil, brochures from Cognis and recycled paper). • Implement recycling politics in the company, and motivate employees to recycle and protect the ambient. .

  43. We know how. 43 Universal PR May 2007 “To engage with its employees” Strategy 4: Ensure employees are aware of how their role fits within the wider organisation. Tactics: • Regular boardmeetings. • Monthly lunches between CEO and directors. • Create an intern magazine. - With interviews, chimical articles, and contributions from the employees. - Start with four magazines in the first year, with 300 copies for each. • Have a bulletin board that employees can use to advice, inform.

  44. We know how. 44 Universal PR May 2007 “To look to the future” Strategy 5: Engage in transparent communication concerning Cognis’ vision, business strategy and financial decisions. Tactics: • Communicate financial results. • Publish the annual report on the website. • Send it to the press. • Informal breakfasts with employees. • Create a company blog. - Only the manager can post, but anyone can comment. • 10 year celebration party. • In Cognis facilities, São Paulo – speech from senior manager.

  45. 45 Universal PR May 2007 Timeline: BRAZIL

  46. 46 Universal PR May 2007 Budget: BRAZIL • Donation to ECOAR: R$2.000 • Charity event: R$500 • Computers: R$ 7.000 • Cognis Kit: R$ 5.000 (10.000 kits) • Press releases: Free • Partnerships: Free • Inter Magazine (Two Year): R$ 8.000 • Recycling politics: R$500 • Bulletin Board: R$ 900 • Blogs: Free • Employee 10 years party: R$ 1.500 • Evaluation: R$ 1.000 • TOTALR$26.400 (9,997 Euros) Back to: Target Countries Slide

  47. 47 Universal PR May 2007 Cognis Greater China

  48. 48 Universal PR May 2007 SWOT: China

  49. 49 Universal PR May 2007 China: Competitor & Media Analysis Competitor Information • DSM recently announced that it will establish a new HQ complex in Shanghai.  The development is part of the company’s Vision 2010 Strategy that aims to realise revenues of US$1bn from emerging economies by 2010.  • Rohm and Haas opened a Chinese Research and Development Center in June 2005.  The facility is the organisation’s primary research and technical service HQ for the Aisa-Pacific region.    • Degussa China has formed a partnership with a top business school in China.  The China Europe International Business School (CEIBS) is based in Shaghai and it is hoped that the partnership will help Degussa attract China’s most talented.     • Rhodia has named Shanhai as the location for a new R&D centre. Media • Largest media system in the world – 2000 newspapers, 9000 magazines, 2000 radio stations, 3600 television channels. • Heavily regulated - Is controlled by the state. Chinese Communication Party (CCP) issues specific guidelines on what media can report. • Loss of government subsidies – print media get no funds from government so have to rely on advertising. This has led to gaining coverage by engaging in hard hitting investigative reporting and muckraking –the media is therefore not as afraid as it used to be in reporting social issues. • Top 10 Print Media – Beijing Evening News, Guangzhou Daily, Beijing Youth Daily, Peninsula City News, Shanghai Morning Post, Chengdu Economic Daily, Beijing Times, Xinmin Evening News, Shopping Guide, Shenzhen Special Zone Press. • Magazines – Caijing (most respected Business magazine), Outlook, Oriental Outlook, China Newsweek, Window on the South. • Television – China Central Television (Channel 2 - Business). • Growth of the Internet – grown exponentially and is harder for government to regulate content.

  50. 50 Universal PR May 2007 How Cognis is Perceived in China Employees’ level of awareness is average to strong in relation to the majority of Cognis’ reputational attributes. However, general and trade journalists have unknown awareness of Cognis being a financially strong company, its communication, products and services and it being good employer. Financial journalists are unaware of all of Cognis’ reputational attributes. Unknown Weak Average Strong

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