Leo Burnett Targets Silicon Valley with New Agency
By Grant Lukenbill
August 9, 1999
Leo Burnett Co., Chicago, opened a new set of doors last week in San Francisco with its TFA/Leo Burnett Technology Group, and itÕs already pitching Silicon valley heavyweights with its signature namesake concept: Total Focus Approach.
The new operation will be led by Robert Ahearn, who will act as president of TFA/Leo Burnett and will manage daily operations and direct all strategic client-development activities. The company said it is about to sign up new business and will approach its clients with strategies that break old molds and offer new, more truly integrated approaches.
"WeÕre talking to people every day this month," said Sean Bisceglia, CEO of TFA/Leo Burnett. "This week alone weÕre in the process of making three major pitches, and I imagine this year weÕll be in about 15 to 20 more. Right now, we are in the final stages of negotiating new contracts, which weÕll soon be able to announce."
Leo BurnettÐ which acquired TFA from Bisceglia last year and also operates Technology Group offices in Chicago, Boston and Austin, TXÐ seems undaunted by the nature of the hi-tech jungle. And Bisceglia, as well as Leo Burnett U.S.A. president Linda Wolf, acknowledged that the companyÕs latest venture into Northern California is a daring one, but one they say they are prepared to stay in for the long haul. No matter how many competitors they encounter.
"As a company, we made a decision to be here because we know what weÕre [capable of]," Wolf said.
"Yes, we certainly knew we were entering a competitive area," Bisceglia added, "but itÕs an area we bring a lot toÐ direct marketing, branding, sales support, public relationsÉeverything."
The Total Focus Approach means being able to deliver everythingÐ a roster of services that every hi-tech marketing services shop is touting in pursuit of Internet-focused clients. But Bisceglia said itÕs more than that.
"You have to remember, we are working in parallel with all the people at Leo Burnett," he said, "We are able to partner with them on everything. WeÕve also some market studies on technology clients and we have found that there are only certain categories that we are interested in. We want to work with people who understand the value of creating a brand, but also the importance of building longevity while you create it."
There are distinctive differences being associated with integrated marketing, Bisceglia said, especially with Internet-oriented clients. For instance, he said 50 percent of the branding on a dot.com business now lies outside the traditional agencyÕs control and his business is often about creating DM strategy and branding initiative at the same time.
"You have to understand that a lot of things are happening right now in marketing, and I think many packaged goods companies are very much less likely to accept this idea," he said. "Technology companies are more willing to because it resonated with them and their [experience of] the business. We do a lot of work building brand by getting people to the portalÐ getting them to the portal is part of the brand experience. ItÕs part of a fundamental change in advertising and marketing from three or four years ago. Now, there is a whole other way to build brands. But, first, you have to make sure that the client understands that it is more than just the direct marketing strategy, more than the marketing cycle or the branding. It has to work together."
In a perhaps less integrated way, Bisceglia acknowledged that his company is considering applying its own hybrid philosophy of simultaneous marketing and branding to its own nameÐ which may soon simply become The Technology Group.
The new San Francisco office will move into permanent headquarters within the month. Bisceglia said they would begin increasing staff from the current five and likely have more than 20 associates by the end of the year. Leo Burnett has more than 270 operating units across 81 markets, including direct, database and interactive marketing. It handles seven of the worldÕs 25 most valuable global brands as ranked by Interbrand: McDonalds, Coca-Cola, Walt Disney, Marlboro, Kellogg, Tampax and Nintendo. The company employs more than 9,000 people and posted 1998 billings of $6.81 billion.
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