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1、&1Ogilvy & Mather&Focus Is The Foundation of SuccessPreliminary Proposal to ZhaodaolePrepared by O&M Beijing in Feb 19992Ogilvy & Mather& ThePlayers in Internet MarketHardwareIBM HPSun Compaq 3Com USR AT&TSoftwareNetscape Microsoft Oracle IBMAccessAOL MSN IGNHome ChinaNetChannelAOLYahoo CNet Excite
2、ZDNet Pointcast Chinabyte SohuServiceTraditional mediaEntertainment Direct sellersWeather forecastDow JonesExpertiseWeb designersSystem IntegratorsConsulting firmsZhaodaoleZhaodaoleZhaodaoleTechnology & Economics of ScaleBranding & MarketingResourcesProfessionalSkills3Ogilvy & Mather& TheGolden Rule
3、s in Internet MarketCompeting in different categories requiredifferent resourcesYou need huge resources to winFirmly established in one category first, before you go to the neighboring categoriesIts easier for“Service”players to become“Channel”players. But its extremely difficult vice versa4Ogilvy &
4、 Mather& “Zhaodaole”3 Major IssuesCurrent Situation:Not yet widely recognized Resources are limitedWish to make profit asap to start a positive reinforcementCurrent Issues:Resources are seriously diluted by wishing to become “Channel”, “Service” and “Expertise” players at the same timeNone of the cu
5、rrent contents has lasting competitive edgeThere is no strong association between the name “Zhaodaole” and the content/services it provides5Ogilvy & Mather&What Should We Do?6Ogilvy & Mather& OurRecommendationsGiving up writing your own articlesGiving up (gradually) the web design businessForming st
6、rategic alliances with external resourcesFocus yourselves to become the most professional “Channel” player in China7Ogilvy & Mather&How to turn “Zhaodaole”into the most popular web sitein China?8Ogilvy & Mather&The “Zhaodaole” Every Chinese Is Looking forUsing “I Found It” as the core concept to int
7、egrate all the related servicesI found the apartment I found the hotelI found the restaurant I found the movieI found friends I found the jobI found the employees I found the customers I found the suppliersI found myself9I found .Ogilvy & Mather&The “Zhaodaole” Every Chinese Is Looking forI found Ho
8、tel!I found restaurant!I found House!I found friends!I found Movie!I found Job!I found employees!I found customer!I found Supplier!I found myself!10I found !Ogilvy & Mather&Where We HaveTheGreatest Added Value for YouManagement & Marketing ConsultationValidating the new business modelSet-up of the a
9、dvertisement marketing system Sales training360Brand Stewardship Consultation Research Consultation and Coordination AdvertisingPublic RelationsDirect MarketingMedia Services11Ogilvy & Mather360Brand StewardshipHaving the core “Big Idea” is only the first stepIn order to make every cent works much h
10、arder for you,your communications has to be very strategic and very integrated& Discussion on HowWe Charge.Our costs are basically time costsThere is relatively little flexibility in terms of time costs, but there is huge flexibility in terms of outputHow to get maximized output with minimized costs
11、: Plan in advance and provide clear direction and briefing Simplify the decision making processSingle point of contactIntegrate different communication tools to provide economics of scale for us and create cost-effective impact for youUse us where we have the biggest added-valueExternal costs (e.g.
12、Production) will be billed at costs on project basisTime costs spent on media planning and buying will be covered13by 6% media service fee on top of net media costsOgilvy & Mather&HowWe Charge.Strategic Consultation & Planning200 USD/hour Project Management 130 USD/hourConcept Development150 USD/hou
13、rCopy Writing and Art Direction130 USD/hourArtwork Finishing70 USD/hourExternal costs (e.g. Production) will be billed at costs on project basisTime costs spent on media planning and buying will be coveredby 6% media service fee on top of net media costs14Ogilvy & Mather&TheNextStepsDiscuss and deci
14、de if fundamental business model of Zhaodaole should be changed to what we recommendedDiscuss and decide if and how we can best work togetherHow Zhaodaole can use O&M and vice versaValidate the new business model with the help of O&MO&M to conduct 360Brand Stewardship and propose for 1999 Integrated Marketing Communicat
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